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TREASURY DEPARTMENT LIBRARY
LIB R A R Y
5030
JUN 14 19 72
TREASURY DEPARTMENT
m u m m nwumrn
wmmnm
m r r m i i w
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TREASURY DEPARTAIENT
W a sh in g to n
(The following statement by Mr. John W, Snyderon th|* occasion of his taking the oath of office
ss Secretary of the Treasury, is scheduled for
delivery at 11:00 a.m., E.S.T., June 25, 1946,
and is for release at that time.)
No man. c&n take office as Secretary of the Treasury in our
time without feeling humble before the weight of responsibility
which this high office brings*. I shall do my best, and it is
my fervent hope ,that I shall be equal to the* task,.
I am truly honored to have here with me on this great day
of my life, so many of my good friends.
I am particularly
happy to be honored by the presence of the President.. Also, it
is a rare privilege to have the honor of being inducted into
° ^ lce by the man who, at the same time, is the Chief Justice
of the United States, my predecessor*as Secretary of the
Treasury, and-my friend. Another source of great happiness to
me is the. fact that I have with me here my esteemed colleague,
Max Gardner, who will be so closely associated with me as
Under Secretary.
I am most fortunate in having these fine friends and able
counselors to aid me in decisions of.future nolicy on monetary
and fiscal matters.
Decisions of policy are, of course, of no avail unless
they are based on the best available data and unless they can
be promptly and vigorously carried out.
It is auspicious and
providential that the Department of the Treasury possesses an
outstandingly able and devoted staff of public servants,
specialists in the comp3.icatsd and diversified fields covered
by the Department.
I shall rely upon their counsel and guid
ance..
..
Xt would be presumptuous for me to state in detail at this
time the various fiscal and monetary measures which the Govern
ment hopes to employ in order that the country may quickly comnlete its transition from war and effect the reconversion to a
stable and prosperous economy.
So many pressing problems face
us, however, that I should like to name, very briefly, some of
the tasks that face American citizens and their Government in
the months ahead.
S-l
-
2
-
The job of converting our huge war machine from the making
of munitions to the making of peace-time goods is practically
complete.
This conversion was accomplished in less time, and
at a lower cost in terms of idle plants and idle, men, than most
In spite of temporary halts and slowdowns, the
of us expected.
economy is now producing more civilian goods and services than
ever before in the Nation’s history.
With this high level of civilian production, go additional
responsibilities.
It is the responsibility of the Government
to reduce its expenditures in every possible way, to maintain
adequate tax rates during this transition period, and to achieve
a balanced budget - or better - for 1947. It is the responsi
bility of individual citizens to continue to produce needed
goods and services at the highest possible level, to spend
wisely, and to lay aside a portion of their income for the best
and safest investment in the world - U.S. Government securities.
It is the determined duty of the Treasury of the United States
to safeguard these securities.
We have an almost limitless resevoir of energy in this
country upon which to draw.in building a permanent high-produc
tion, high-employment economy.
The sources of this energy are
many - our rich natural resources, the dollars our people
earned but did not spend during the war, the initiative and
high productivity of the American worker, the daring and imagin
ation of the American businessman.
If we tap this reservoir
wisely, we will enable our system of free enterprise to flourish
in the public interest and for the public good.
We cannot have a prosperour Nation - or a peaceful one without a stable world.
For that reason, if for no other, we
must prevent the seeds of isolationism from springing up both
here and abroad.
The Bretton Woods agreement was a forward '
step in the direction of removing barriers to international
trade and investment.
Today, every American citizen is also
a citizen of the world.
It is to his interest to study and
understand his duties and responsibilities as a citizen of
our modern world.
We are well on the way toward our dual objective of
building a stable and prosperous economy at home, and of help
ing other nations to build theirs.
To reach this goal, we need
the active understanding and cooperation of all the people.
Today, more than ever before, our motto should truly be
’’United We Stand; Divided We Fall.1’
0O 0
m
w
BiPMTsrar
Washington
rat m m u m m m m ,
Tuesday, «fane 2$, 191*6.
Press Service
7^o- U=====^s
F :gr~
5-
The Treasury today announced the subscription figures and the basis
of allotment for the offering of 7/8 percent Treasury Certificates of
Indebtedness of Series
T-19k7 in
B~1 $ 4Ó, maturing ¿uly 19
exchange for Treasury Motes of Series
1$%$*
Reports received frost the Federal Reserve Banks show that subscrip
tions aggregate $14,670,000,000.
Subscriptions in amounts up to and
including #2$,GOO, totaling about $lil,000,00Q, were allotted in full«
Subscriptions in amounts over 12$, 000 sere allotted ¿^percent on a
straight percentage basis, but not less than |2$,000 to any one sub
scriber, 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.
ß
TREASURY DEPARTMENT
Washington
FOR IMMEDIATE RELEASE,
Tuesday, June 25* 1946.
Press Service
No. S-2
The Treasury today ,announced the subscription figures
and the basis of allotment for the offering of 7/8 percent
Treasury Certificates of Indebtedness of Series F-1947 in ex
change for Treasury Notes of Series D-1946, maturing July 1, 1946.
Reports received from the Federal Reserve Banks show that
subscriptions aggregate $4,670,000,000.
Subscriptions in amounts
up to and including $>25,000, totaling about $41,000,000, were
allotted In full.
Subscriptions in amounts over $.25,000 were
allotted 62 percent 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.
oOo
s
K ® IMMEDIATE RELEASE
June 25. 19H6
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:
Quantity In Pounds
As of April 30, I 9H6
Country of Production
Signatory Countries:
Brasil
Colombia
Costa Rica
Cuba
Dominican Republic
Ecuador
El Salvador
Guatemala
Haiti
Honduras
Mexico
Nicaragua
Peru
Venezuela
g53,lTO,H23
398.697,077
17.7X0.553
290
17.H28.379
9 ,092,g27
29 ,16 g,log
H9 .H39.922
15,270,1$7
5 ,076,g2l
Hl.gH7 .9gg
Xl,959 .038
2.379,907
32,837.179
26 .992.H09
Non-Signatory Countries:
TOTAL
1 ,5 1 1 ,071 ,10 s
The above data reflects the amount of coffee for which
entries for consumption hare been reported as of April 30«
and includes the returned weights on a number of entries,
which returned weights have not previously been considered*
TREASURY DEPARTMENT
Washington
FOR IMMEDIATE RELEASE
Wednesday, June 26, 1946
Press Service
No. S-3
The Bureau of Customs announced today preliminary figures
showing the quantities of coffee entered for consumption dur
ing the period commencing October 1, 1945, as follows:
n 4.
~ -n - . .
Quantity in Pounds
Country of Production________________As of April 30. 1946
Signatory Countries:
853,170,423
398,697,077
17,710,553
290
17,428,379
9,092,827
29,168,108
49,439,922
15,270,187
5,076,821
41,847,988
11,959,038
2,379,907
32,837,179
Brazil
Colombia
Costa Rica
Cuba
Dominican Republic
Ecuador
El Salvador
Guatemala
Haiti
Honduras
Mexico
Nicaragua
Peru
Venezuela
Non-Signatory Countries:
26,992,409
TOTAL
1,511,071,108
The above data reflects the amount of coffee for which
entries for consumption have been reported as of April 30,
and includes the returned weights on a number of entries,
which returned weights have not previously been considered.
mm
-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 m
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 Ho. Ul8, as amended, and this notice, pre
scribe the terms of the Treasury bills and govern the conditions of thexr
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, fallowing which public announcement will be made
by the Secretary of the Treasury of the amount and price range of accepted
bids.
Those submitting tenders vrill 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
July 5* 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 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
42 and 117 (a) (1) of the Internal Revenue Code, as amended by Section ll£ of
the Revenue Act of 194-1* the amount of discount at which bills issued here
under are sold shall not be considered to accrue until such bills shall be
I M M
TREASURY DEPARTMENT
Washington
p
FOR RELEASE, MORNING NEWSPAPERSy -
Friday, June 28, 1946
f
______ *
The Secretary of the Treasury, by this public notice, invite^ renders for
$ 1,300,000,000 , or thereabouts, of ___90_-day Treasury bills, to be issued
on a discount basis under competitive and fixed*-price bidding as lereinafter
provided.
The bills of this series will be dated
will mature
out interest.
July 5* 1946________ , and
October 3, 1 9 4 6 ____* ^hen the face amount will be payable withThey will be issued in bearer form only, and in
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,
Monday, Jv
1» 1946
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* MORNING NEWSPAPERS,
Friday, June 88, ,1946
> ‘
Press Service
- No* S-4
The Secretary of the Treasury, by this public notice* in
vites tenders for #1,300,000,000, or thereabouts', of 90-day
Treasury bilip* to be issued on a discount basis under com
petitive and ..fixed-price bidding as hereinafter provided* The
bills of this series will be dated July 5, ’1946, and will mature
October 3, 1946, when the face amount will be payable without
interest* They will be issued in bearer form only, and in de
nominations of #1,000, -#5,000, #10,000, #100,000, #500,000, and
# 1 ,000,000 (maturity value).
, Tenders will be received at Fedèral Reserve Banks and Branches
up to the closing hour, two o'clock p.m., Eastern Standard time,
Monday, July 1, 1946. 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 appli
cation therefor*
Tenders will be received without deposit from incorporated
banks and trust companies and from responsible and recognized
dealers in investment securities.
Tenders from others must be
accompanied by payment of 2 percent of the face amount of
Treasury bills applied for, unless the tenders are accompanied
by an express guaranty of payment by an incorporated bank or
trust company.
Immediately after the closing hour, tenders will be opened
at the Federal Reserve Banks and Branches, following which public
announcement will be made by the Secretary of the Treasury of
the amount and price range of accepted bids. Those submitting
tenders will be advised of the acceptance or 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
yy.905 entered on a fixed^price basis will be accepted in full*
ayment of accepted tenders at the prices offered must be made or
completed at the Federal Resex’ve Bank in cash or other immediately
available funds on July 5,- 1946.(0ve r )
2 *»
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 ©r'State, but shall be
.exempt from all taxation now or hereafter imposed on the principal
•or. interest thereof b y .any State, or any of the possessions of
the United States, or b y (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 42 and 117 (a) (1 ) of the Internal
Revenue Code, as amended by Section 115 of the Revenue Act of
1941, the amount of discount at which bills Issued hereunder are
sold shall not be .considered to accrue until such bills shall be
sold, redeemed or otherwise disposed of, and such bills are ex
cluded 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;’arid the amount actually
received either upon sale or redemption at maturity during the
taxable year for which the return is made; as ordinary gain or
loss •
Treasury Department Circular No. 418,. as amended, and this
notice, prescribe the terms of the Treasury bills and govern
the .conditions of their Issue.
Copies o*f the circular may be
obtained from any Federal Reserve Bank or Branch.
oOo
W
K
BliSEitflSf
Washington
mm. m m m m W 3 M M $
Friday,
$am 28,
Press Service
— v£> '
1 ?1*6 .
fi» Secretary e£ the Treasury today announced the final subscription
and allotment figures with respect to the current offering of ?/$ percent
treasury Cortifieatas of Indebtedness of Series F~19t*7*
Subscriptions for
amounts up to and including t2*>,000 sere allotted in full and amounted to
$1*1 ,*§8,000.
Subscriptions and allotments were divided among the several Federal
Reserve Districts and the treasury as follows*
Federal Reserve
District
total Subscript
tions Received
total Subscriptions Allotted
Boston
lew fork
Philadelphia
Cleveland
Richmond ,
Atlanta
Chicago
1
St. Louis Sfe
1 m,iA,ooo
2,809,013,000
120,923,000
172,100,000
17,565,000
I 81,003,000
la?,155,ooo
»,373,000
59,239,000
136,129,000
102,123,01»
1)60,31*0,000
. M 3,796,000
| 107,098,000
l,7l*l*,0?8,000
75,5k3,000
107*739,000
30,21*8,000
51,280,000
261,817,000
58,371),OKI
39,289,000
87,178,000
a , 171,000
286,1)21*,000
2,1)28,000
a , 673,023,000
$2,915,697,000
Kansas City
Dallas
San Francisco
treasury
jBf
TOTAL
TREASURY DEPARTMENT
Washington
POE IMMEDIATE RELEASE,
Friday,, .June 28, 1946«
Press Service
No. S-5
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 P-1947.
Subscriptions for amounts up to and including
$ 25,000 were allotted in full and amounted to $41,958,000.
Subscriptions and allotments were divided among the several
Federal Reserve Districts and the Treasury as follows i
Federal Reserve
District
Total Subscriptions Received
Total Subscrip
tions Allotted
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Treasury
$
$
171, 464,000
2 ,8 0 9 ,0 1 3 ,0 0 0
120, 923,000
172, 100,000
TOTAL
47.565.000
8 1 .003.000
417.455.000
91.373.000
59.239.000
1 3 6 .1 2 9 .0 0 0
1 0 2 ,123,000
4 6 0 ,8 4 0 ,0 0 0
3 t796,000
f 4 , 673,023,000
oOc
107 ,098,000
1, 744,078,000
75.543.000
107.739.000
3 0 .2 4 8 .0 0 0
5 1 ,2 8 0 ,0 0 0
.
261 847.000
58.374.000
39.289.000
8 7 .1 7 8 .0 0 0
6 4 ,1 7 1 ,0 0 0
2 8 6 ,4 2 4 ,0 0 0
- 2 ,4 2 8 ,0 0 0
$2,915,697,000
3
The d i rect d ebt on June 30, 1946 was ( 2 6 9 , 4 2 2 million, w h i c h
is a b out
5.6 b i l l i o n less than was e s t i m a t e d In the P r e s i d e n t ’s
J a n u a r y b u d g e t message.
On the other hand, the general fund
b a l a n c e at the end of the year of ( 1 4 , 2 3 8 m i l l i o n was about ( 2 .3
bi l l i o n h i g h e r than was estimated 'in the Budget.
T h e s e two items
t o g e t h e r make a total improvement in the financial con d i t i o n of
the T r e a s u r y of ( 7 . 9 billion, of w h i c h (>7.7 b i l l i o n is due to a
r e d u c t i o n in the actual d e f i c i t b e l o w the amount of the deficit
e s t i m a t e d in the January Budget.
t
oOo
There was a d e c r e a s e of ^1,061 m i l l i o n in the "International
;F i n a n c e ” category, c o n s isting p r i n c i p a l l y of the ¿*.950 m i l l i o n
i tem for the i nternational M o n e t a r y Fund w h i c h did not go out.
There was a reduction of (514 m i l l i o n in general act i v i t i e s and
•v3 m i l l i o n on a c c o u n t of i n t e r e s t m a k i n g total reductions for .
these three c a t e gories of ( 1,578 million.
T h e s e reductions were
offset by increases of (.187 m i l l i o n in w a r activities; (275 millio
on account of veterans ; and (434 m i l l i o n on account' of refunds
of taxes.
W i t h respect to the tax refund item, it should be e x
plained that this y e a r the T r e a s u r y x h r tuslly completed its w i t h
h o l d i n g - t a x refund p r o g r a m before the close of the fiscal year,
w h e r e a s in the April 11 budget estimate it was assumed that a
large part of the p r o g r a m w o u l d be c a r ried over to the fiscal year
1947.
,
(3)
C o m p a r i s o n w i t h 1 9 45 a c t u a l.
^The deficit (including corporations) for the fiscal y e a r 1946
was
32,639, m i l l i o n less than the' deficit last year»
This improve
men t is a c c o u n t e d for b y (1 ) a red u c t i o n of (.35,336 m i l l i o n in
e x p e n d i t u r e s (2 ) an increase in credits to G o v e r n m e n t corp o r a t i o n
accounts of ( 6 7 2 million; less (3). a r e d u c t i o n of ('31419 m i l l i o n
In revenue.
A
E x p e n d i t u r e s of w a r activities d e c r e a s e d
These dec r e a s e s were offset by an increase o f
interest; (.1,319 mi l l i o n for tax refunds (due
refunding of w i t h h o l d i n g tax m e n t i o n e d above)
for veterans.
( 4 1 , 4 8 7 million.
( 1 , 1 0 5 m i l l i o n for
to the a c c e l erated
and 1,2,193 m i l l i o n
The pri n c i p a l other Increases were 1-5Q.Q. m i l l i o n for post-war
price support of agriculture,
f;674 m i l l i o n f o r the E x p o r t - I m p o r t
Bank, -'159 m i l l i o n for' the Intern a t i o n a l Bank, and (,160 m i l l i o n
for postal d e f i c i e n c y .
The d e c rease of 1-3,419 m i l l i o n in revenue
was a c c o u n t e d for p r i n c i p a l l y b y a r e d u c t i o n o f (897 m i l l i o n in
the w i t h h o l d i n g tax, and 1-3,391 m i l l i o n in otlner income taxes.
Mi seel 1 .ane ou s internal revenue excise taxes irscreased 1-776 m i l l i o n
There was a net increase In all other receipt items combined of
( 9 3 million.
PUBLIC D E B T
• |
The public debt (including g u a r a n t e e d debt) increased
(-10,783 m i l l i o n d u r i n g the year (from (.259,115 m i l l i o n on June
1945, to (j.26 9 , 8 9 8 m i l l i o n on June 30, 1946).
30,
TREASURY DEPARTMENT
Washington
H i g h l i g h t s of Fiscal Y e a r - e n d S t a t ement
(1)
C o m p a r i s o n w i t h P r e s i d e n t ’s B u d g e t of January l/
to rH
The d e f i c i t for 1946 (including G o v e r n m e n t corporations)
w as $ 7 , 6 8 6 m i l l i o n less t h a n the J a n u a r y b u d g e t estimate.
Thi
improvement in the Budget was a c c o u n t e d for by (a) red a c t i o n o
$ 3 , 2 5 7 m i l l i o n in expenditures, and (b) increase of $>4,429
-million in receipts.
About $2,0 6 1 m i l l i o n of the e x p e n diture reduction was u n d e r
the category ’’Interna tional F i n a n c e ” (v i z M o n e t a r y Fund,
I n t e r n a t i o n a l Bank, E x p o r t - I m p o r t Bank, credit to t h e U n i t e d
K i n gdom).
W a r activities d r o p p e d off,?,1 3 0 million.
D e c reases
in o t her acti v i t i e s a m o u n t i n g to $ 2 , 2 0 7 m i l l i o n were offset by
increases a g g r e g a t i n g * 1 , 1 6 9 million, on a c c ount of v e t e r a n s ’
payments' (d'851 million) and, refunds of w i t h h o l d i n g taxes
($318 million) u n der the a c c e l e r a t e d tax refund, program.
The
increase of $ 4 , 4 2 9 m i l l i o n in receipts is a c c o u n t e d for- prin
c i p a l l y by: an increase In w i t h h e l d taxes of $'1,331 million;
o t h e r income tax $12,333 million; excise taxes, $-405 million;,
and receipts f rom m i s c e l l a n e o u s sources, $30 9 million.
(2 )
C o m p a r i s o n w i t h Pr e s i d e n t ’s A p r i l 11 B u dget, R e v i s i o n 1
The actual de f i c i t (in c l u d i n g corporations) for 1946 was
$“788 m i l l i o n less than the d e f i c i t estimated by the President
on A o r il 1 1 . This improvement in the b u d g e t s i t u a t i o n since
the April 11 estimate was r e l eased is due to a net d e c rease ine x p e n d i t u r e s of $682 m i l l i o n and an increase in receipts of
$ 1 0 6 million.
1/
No c omparisons
between Budget
are m a d e In the m i m e o g r a p h e d press
estimates and actual results.
releases
/
wmmm
t m s m
üubijagtfli
TOR R M L MCEHim »8BSFAPKR3
Tuesday, Jdly 2, 19b6
Fress^Service
**• Secretary of the Treasury annmiaeed last evening that the tenders £0**
$1*300,000,000, or thereabout«, of 90-day treasury bill« to be dated Ju3y $ and to mature
Ootober 3, 191*6* shich ware offered 0» June 28, 191*6* «ere evened at the Federal Reserve
Banks on July 1*
the details of this issue are as follows $
total applied for - $1#803,3*1*000
total accepted
- X*3O7*7li5*0O0
Average price
(includes $29,689,000 entered on a fixed-price \
basis at 99*90$ and accepted in full)
- 99*900/ Squivalent rate of discount approx« 0*3?6£ per »mum f
Seoge of accepted competitive bids*
High
- 99.908 Bipaivalent rate of discount 0*3681» per a m ®
ft
99*906
0.376* »
*
(71 percent of S js aaount bid for at the low pries® was accepted)
Federal Reserve
district
total
total
Boston
Sew lark
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St* Louis
Minneapolis
Kansas City
Dallas
San Francisco
I
«
12,020,000
1,1(01*,901,000
13.735.000
It,550, 000
10,51*5,000
281*,296, 000
lit,016,000
1.755.000
8 .787.000
1*,550,000
8,933,000
928,000
205,561,000
1 0 ,566,000
1.755.000
1*,1*39,000
1|3 .288.000
31,31*1. OOP
• 1 ,803,51a, 000
11,307,71*5,000
11.195.000
928,000
1*, 070,000
f o m
10,180,000
1,011*, 877,000
1 .070.000
TREASURY DEPARTMENT
V.o shington
FOR RELEASE, MORNING NEWSPAPERS,
Tuesday, July 2, 1 9 4 6 , _______ •
:
Press Service
No, S -6
The Secretary of the Treasury announced last evening that
the tenders for #1,300,000,000, or thereabouts, of 90-day
Treasury bills to be dated July 5 and to mature October 3 , 1946,
which were offered on June 28, 1946, were opened at the Federal
Reserve Banks oh July 1*
The details of this issue are as follows:.
Total applied for « #1>803,541*000
Total accepted
- 1)307,7459000 (includes #29*689,000 entered
on a fixed-price basis at
99,905 and accepted in full)
Average price
- 99*906/ Equivalent rate of discount approx*
0,376% per annum
Range of accepted competitive bids:
High - 99.908 Equivalent rate of discount 0*368% per annum
Low — 99,906
^
0*376%
m
(71 percent of the amount bid for at the low price was accepted)
Federal Reserve
District
• Total Applied For
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansa s City
Dallas
San Francisco
#
TOTAL
1 2 ,020,000
1*404,901,000
13.735.000
4.550.000
11.195.000
928,000
284,296,000
14.016.000
1.755.000
8.787.000
4.070.000
43.288.000
I 1,803,541,000
oOo
Total
Accepted
#
1 0 ,180,000
1> 014,877,000
10.545.000
4.550.000
8.933.000
928,000
205,561>000
10.566.000
1.755.000
4)439,000
4)070)000
51.541.000
$ 1> 307,745
,000
IMPROVEMENTS IN DAILY TREASURY STATEMENT
EFFECTIVE JULY 1, 19^6
iGeneral
Beginning with this issue of jthe Daily Treasury Statement the following
changes have been made:
N/
.,
.
(1) In order to conform with current budgetary practice, the net opera
tions of wholly-owned Government corporations and other business-type agencies
formerly classified on page 3 , hereafter will be shorn on page 2 , and tne net
receipts or expenditures resulting from their operations (except sales or
redemptions of their obligations in the market) will be included in^the total
expenditures of the Government, and will consequently be reflected in the
current budgetary surplus or deficit, as the case may be.
(2) Payments made by the Division of Disbursement of the Treasury Dep rtment will be classified as expenditures when checks are issued, a clearing
account for outstanding checks being provided on page 3* Tllis "i n Provide
a more realistic picture of current Government expenditures as far as these
classes of checks are concerned. In addition, certain inprovements have been
made in the classification,
+
(3) Changes in the set-up of the statements relating to the Public Deb ,
Guaranteed Obligations, and Contingent Liabilities, beginning at page 5, are^
explained in the Notice on page 12.
^
Public Debt
With this issue of the Daily Treasury Statement, a rearrangement of the
Statement of the Public Debt and Guaranteed Obligations has been inaugurated.
The purpose of this rearrangement is to facilitate the use of the informa ion
by the public and others concerned. The statement has been set up in ive
sections in the order named, as follows:
•
_
1. Summary of Public Debt and Guaranteed Obligations Outstanding.
2 ! Statement of the Public Debt, showing details with respect to
the various issues.
3 . Statement of Guaranteed Obligations.
Statement of Contingent Liabilities.
5 . Memorandum, containing comparative data with respect to out
standing direct and guaranteed debt and general fund balance
on significant dates relating to World War X and World War II.
The -bases of the figures are the same as in the previous debt statements.
The change relates only to arrangement of classification. The first P p n0JP
of division is with respect to (a) direct debt, and (b) guaranteed debt. The
direct debt is classified, first, as to interest-boaring debt, and, secondly,
as to non-interest-bearing debt. The interest-bearing debt is subdivided as
between (l) public issues, and (2) special issues. The public issues are
classified as to marketable obligations and non-markotable obligations, ihe
markotable obligations are classified according to length of
Treasury bills, certificates of indebtedness, Treasury notes, and Treas^
bonds; and the arrangement of the various issues under these various ca g
is in order according to the earliest call or maturity da e.
. rvhliIt will be noted that distinction has been made between Guaranteed Obi
gâtions issued by various Government corporations and agencies, whic are
issued primarily for financing purposes, and Contingent liabilities,
b.
Postal Savings deposits and Pederal Reserve notes.
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Wednesday, July 5 , 1946
li
?eCTQi^r?
■¿O
.
a
be made ;
Press' Service
No-. S-7
announced today that, beginning with the
^ ^^easury Statement, the following changes will
General
I.J1 )
order to conform with current budgetary
nractice, the net operations of wholly-owned Government
corporations and other business-type agencies formerly
q
16
hereafter will be shown on page 2 .
6 net feceiP ts or expenditures resulting from
,
operations ( ^ c e p t sales or redemptions of their
obligations in the market) will be included in the
total expenditures of the Government, and will conse
quently be reflected in the current budgetary surplus
or deficit, as the case may be,
i>aym ®nts made by the Division of Disbursement
of the Treasury Department will be classified as expend!<^trt-Whenv,0h?Ckt 8re issued' a clearing account for out
standing checks being provided on page 3. This will
provide a more realistic picture of current Government
expenditures as far as these classes of checks are
concerned.
In addition, certain improvements have been
made in the classification.
Changes in the set-up of the statements relato he Public Debt, Guaranteed Obligations, and.
Contingent Liabilities, beginning at.page 5 , are exd^ ained
^°^dce on PaS© 12 of the statement. These
changes are explained more fully below:
Public Debt
With this issue of the Daily Treasury Statement, a
rearrangement of the Statement of the Public Debt and
of
llgatl 0i S JhaS been inaugurated.
The purpose
of -this rearrangement is to facilitate the use of the'
information by the public and others concerned.
The
b a ® been set U P in five sections in the order
named, as follows:
P
1.
2#
3.
4#
5#
Summary of Public Debt and Guaranteed
Obligations Outstanding.
Statement of the Public Debt, showing
details with respect to the various issues.
Statement of Guaranteed Obligations.
Statement of Contingent Liabilities#
Memorandum, containing comparative data
with respect to outstanding direct and
guaranteed debt and general fund balance
on significant dates relating to World War I
and World War II.
The bases of the figures are the same as in the previous
debt statements# The change relates only to arrangement of
classification.
The first principle of division is with
respect to (a) direct debt, and (b) guaranteed debt* The
direct debt is classified, first, as to interest-bearing
debt, and, secondly, as to non-interest-bearing debt# The
interest-bearing debt is subdivided as between (1 ) public
issues, and (2) special issues#
The public issues are
classified as to marketable obligations and non-marketable
obligations#
The marketable obligations are classified
according to length of maturity, viz, Treasury bills, certi
ficates of indebtedness, Treasury notes, and Treasury bonds;
and the arrangement of the various issues under these various
categories is in order according to the earliest call or
maturity date*
It will be noted thaÇ distinction has been made between
Guaranteed Obligations issued by various Governmeht corpora
tions and agencies, which are issued primarily for financing
purposes, and Contingent Liabilities, such as Postal Savings
deposits and Federal Reserve notes*
oOo
Treasury Department
Washington
Press Service
No. S-S___ _
FOR IMMEDIATE RELEASE
Tuesday. July 2. 19^6
Secretary of the Treasury John %
Snyder announced today the results
of the Treasury’s fiscal operations during the fiscal year ended June JO.
.
v v'-' ' *
The Treasur wtmI;
pared with 1
“..*
g O , 000 as com-
TO:
M n g transactions
in checking!
||ions in these
accounts (0
- in the market)
s compared
resulted in!
gib, 000,!
with net rei
* obligations,
The pu
gfe,115,000,000
stood at $2I
Bind-cash bal-
a year ago,
% which was
ance at the
$10,^60,000 !
^ a r was marked
by drastic
|§3 cessation
Ü
jgiry' outlook,
of hostilit
and "by the <
Mr. Shaeffer
Total 1 H P B H H
M H H 9
ral Old-age
and Survivors Insurance Trust Fund, amounted to $^3 »03 &,000 »000, which is
$3,Ul9,000,000 less than the year before. Total expenditures amounted to
$65,019,000,000 as compared with $100,*f05,000,000 last year, a reduction
of $35 .386 ,000 ,000 .
The'reduction in receipts was accounted for largely by a decrease
in income taxes. Income taxes withheld by employers under the Current
Tax Payment Act of 19U3 amounted to $9.392,000,000 as compared with
$10 ,289,000,000.the year before. Other income taxes amounted to
$21,^93,000,000 as compared with $2^,SSU,000,000 in 19^ 5 . T*ie following
Treasury Department
Washington
FOE IMMEDIATE RELEASE
Tuesday, July 2. 19^6
Press Service
No» S-8_____
Secretary of the Treasury John VT, 'Snyder announced today the results
of the Treasury’s fiscal operations during the fiscal year ended June 30 *
The Treasury closed its books with a deficit of $21,921 ,000,000 as com
pared with a deficit of $53,9^-2,000,000 last year, excluding transactions
in checking accounts of governmental corporations.
Operations in these
accounts (other than sales and redemptions of obligations in the market)
resulted in uet receipts for the year of $1,0^6,000,000, as compared
with net receipts for the preceding fiscal year of $37^,000,000,
The public debt, including publicly-held guaranteed obligations,
stood at $269 ,898 ,000,000 on June 3 °» as compared with $259 .11 ?.000,000
a year ago, an increase of $10 ,723 ,000 ,000 .
The general’’fund'cash bal
ance at the close of the year amounted to $lU,.232,000,000, which was
$10 ,^60 ,000,000 below the balance on June 30, 19U5.
The year was marked
by drastic reductions in Government expenditures due to the cessation
of hostilities, by a substantial improvement in-the-budgetary outlook,
and by the commencement of debt retirement on March 1 .
RECEIPTS AhD EXPENDITURES
'
Total receipts after deducting $1,201,000,000 for the Federal Old-age
and Survivors Insurance Trust Fund, amounted to $^3,038,000,000, which is
$3.^19,000,000 less than the year before. Total expenditures amounted to
$65,019,000,000 as compared with $100,^05,000,000 last year, a reduction
of $35,386,000,000.
The-reduction in receipts was accounted for largely by a decrease
in income taxes. Income taxes withheld by employers under the Current
Tax Payment Act of I9U3 amounted to $9,392,000,000 as compared with
$10,289,000,000.the year before. Other income taxes amounted to
$21,^93,000,000 as compared with $2^,88^,000,000 in 19^ 5 * The following
- 2
table shows ’the principal items (in millions):
1946
Increase
Decrease (— )
Fiscal Year
1946
m
L945
Receiptsl
Internal revenue:
Income tax:
: "Withheld by employers
(Current Tax Payment Act
»9,392
'.,10; 289
of 1943) .•••♦• * .... . •
21,493
Other ................ .
21,,
493 . , 24,884
Miscellaneous internal
6,949
7,725 .
revenue
.....
Social, security taxes:
1,310 ,
1,23B
Employment taxes ..........
Tax on employers of 3 o r "
180
185
more
Taxes upon carriers and their
285.
2B3
employees ...........
Railroad unemployment insurance
13
13
contributions ..
.••• ••* • •
355
435
Customs .........*.. *• • • •> ♦• •
3,470
3,480
Miscellaneous receipts .......-*
3,480
f
Total receipts1.,..... v.•••
44,239
47,740
Deduct;
' 5 *
Net ■appropriation to Federa.1
Old-Age and Survivors Insur
ance Trust Fund ....... .
1,201
1^201
1,283
43,038
46,457.
Net receipts,..#
;
-4897
■-3 ,3 9 1
+776
-72
-5
-2
+80'
+10
'
.
-3 ,5 0 1
-82
-3,419
Miscellaneous receipts for fiscal year 1946 included proceeds from sales
of surplus property under the" Act of October 3, 1944, amounting to
&5.01,000,000. Approximately pi,151,000,000 was received on account of re
negotiation of war contracts.as compared with ^2 ,041 ,000,000 for fiscal year
1945.- ' Alsoy there was included in miscellaneous receipts' for 1945_an^amount
of 33,88 ,0.
0 0.000 on'account of surplus postal revenue, but no- amounts from,
this '
’source were- -received in the fiscal year 1946 , since, a deficiency o _
$161 ,000,000 is included in expenditures.
,'JpV’
Expenditures have-declined substantiallytsince V-E Day* The following
table shows comparative expenditures by quarters ■(in.millions).•.
Period
July
Oct.
Jan.
April
1 *
1 1 1 -
Sept. 3 0 .... .
Pec. 31 ......
March 31 ...♦*♦
June 30 '••*■*•*•
Votai .............
Fiscal Year
19 U 5
Î9I+6
$2!+,159
2U , 267
25 ,099.
26 ,SSU
$100 ,U05
19^6
Decrease
$22,523
$1 ,6 3 6
16,052
13,003
13,^1
8,215
12,091
'1 3 , ^ 3
$65,019
$35,386
Although actual hostilities ended 10-1/2 months before the close of
the fiscal year 19 *+6 , war spending did not stop, such expenditures amount
ing to $Ug, 5^-2 ,000,000 for the year compared with the peak of $90 *029 ,000,000
in the previous fiscal year. Liquidation of war is cosily. The demobili
zation of millions of men and their mustsring-out pay, and outlays to
terminate war contracts, contributed to keep war spending at a high rate.
It is interesting to note, however, that expenditures for war activities
amounted to more than $7*3 billion in July 19^5, the month preceding'
V-J ^ay, and have dropped to $2*^- billion for June 19^-6, the month just
ended, and will continue at a declining rate. These figures do not in
clude net war outlays of the Reconstruction Finance Corporation, which
amounted to $323,000,000 in the fiscal year 19 ^-6 ,
There were decreases under all major categories of war expenditures,
as follows: War Department, $22,5^7,000,000; Navy Dèpartmënt, $lR,336,000,000;
Treasury Department, principally for lend-lease purchases, $767,000,000;
U, S, Maritime Commission, $2,533,000,000; War Shiùping’Administrâtion*
$675 ,000 ,000 ; and decreases under other miscellaneous categories aggre
gating $7^,000,000, There were offsetting increases' in the following
items: Payments for United Nations Relief and Rehabilitation,Adminis
tration $550 ,000 ,000 ; National Housing Agency, $1 0 ,ODD','000;* and $106,000,000
for expenses of surplus property disposal agencies, there being no ex
penditures classified for this item in the fiscal year 19^5 under "War
activities," such expenditures being included under "General" in that year.
Expenditures classified as "General," including -transfers to
trust accounts, amounted to $16 ,^77 ,000 ,000 , an increase of
$6,102,000,000 compared with. 19^5* Of this increase, $U,617,000,000
or about 76$ is accounted for by expenditures that are war related
and sometimes referred to as "aftermath of i>rar, " i.e ,, interest on •< . .
‘the public debt, refunds of taxes and duties, and veteransf benefits
(including transfers to the National Service Life insurance-Fund
shown under "transfers to trust accounts, etc."). In addition, a sub
stantial amount of general expenditures were made to carry out respon
sibilities of the postwar period. Chief among these was $500,000,000
paid to the Commodity Credit Corporation to be used for postwar price
support of agriculture; $ 67^,000,000 for subscription to capital stock
of the Export—Import Bank; and $159*000,000 for subscription to
the International Bank for Reconstruction and Development, The re
maining categories of other general expenditures showed a net increase
of only .$152 ,600 ,000 , due to the receipt in 19^.6 of repayments
of ¿1)165,000,000 capital and surplus from the Federal Land Banks and tne
Federal Farm Mortgage Corporation, as compared vrlth ■
V63,000J,.0©0 in.;194-5
and the fact that no provision was made for payments in 1940 to restore the
canital impairment of the Commodity Credit Corporation, .whereas ih 1945 ’
there mas an expenditure of,^257,000,000 for this purpose. ...-v* : , >
The following table shows the principal items of expenditure (in
millions)':
•
.
1946
Increase (+)
Decrease (-)
Fiscal Year
Classification
Viiar and defense activities:
Wsr Department * . * . : • • < • • * •
Navy Department •v. *«4».*••*•».*
All other •
Subtotal ..... .............
1946
v50,399
v27,852
15,161 , 30,047
9,583
5,529
48,542
General expenditures:
4,722
Interest on the public debt •••
3>034
Refunds of taxes •••« •» •••••»».
4,253
Veterans, a/ . . . . •••.........*
396
Agriculture Department ........
Postwar price support of
■ . 500
agriculture ........... *. •. ••
.• 674
Export-Import Bank
159
International B a n k .... .
.624
Federal Security Agency .......
Federal works Agency>...••• ••• . * 122
61
Recla mation projects_ ..........«
River and harbor work, .ana
168
flood -control •••••*•»*•*»»••♦
40National Housing Agency. .......
161
•
Postal deficiency ...........
Government Employees Retirem.ent247 Funds ............... .
307
Railroad Retirement•Board .....
All other
‘ • 1,009'
Subtotal
Total expenditures
a/
1945
'16,4777
.6 5 ,0 19
•'
90,029 :
3,617
It715
2,000 .;
683
!
—
—
■ '
549
100
50-'
-322,537
'-14,886
•' -4,054
a -41,487
. +1>105
+1,319 .
+2,193
■ -287.
/
/
+50Q+674'
+159
$ +75
+22
+11 .
142
12 .
•1
+26
+28 .
+I60
197.
324
926
• +50
-Ì7
+83-
.10,-375
+6,102'
■
100,4P5 •• '' : :-335,386
Includes NationA Service ¡Life-'.Insurance' Fund
idjudte.d SWyice.
Certificate fend classified -in-Daily! Treasury Statements as Transfers
to Trust Accounts, etc.”.
PUBLIC DEBT
The gross public debt amount ,d to 4269*4*22,000,000 on June 30, 1946,
as compared with ¡*258 ,682 ,000,000 at the close of last year, an increase
of *10 ,740,000,000. This increase is accounted for- by a deficit of
621.981 .000 . 000 , a decrease in the general fund balance of .*10 ,460 ,000 ,000 ,
and an excess* of receipts in trust -accounts-, etc*,- amounting t.o. *781,000,000.
Of tne increase in the public debt during -the fiscal year 1946,
48 .234 .000 . .000 was represented by interest-bearing public issues, and
43 .520.000 . 000 by interest-bearing special issues to trust accounts ad
ministered by the Treasury; these increases being offset by a net decrease
of 41 ,014 ,000,000 in matured debt on which interest .has ceased, and non
interest bearing debt, the latter item decreasing *970,000,000 on account
of excess 'profits tax. ref'und bonds.
-• •
Of the public issues, marketable obligations increased *8,287,000,000,
as follows; Outstanding Treasury bonds increased.*12,875,000,000; certifi
cates of' indebtedness increased *668,000,000, while Treasury notes and other
marketable securities decreased 45 ,254 ,000 ,000 .
The.re was a net decrease of *53,000,000 *in nonmarket able obligations.
In the nonmarketable group, outstanding United-States Savings Bonds
increased *3,449,000,000, -while Treasury savings notes and Depositary bonds
decreased *3 *425 ,000 ,000 , and *78,000,000,*respectively.
’
The following statement shews the public debt on June 30, 1945, and
June 30,' 1946, classified by types of issues:
-.6 Statement of the outstanding public
debt on June 30, 194-5 and June 30. 1946
(In millions cf dollars)
June
30
1945
Issues
June
30
1946
Pulhic issues (interest-oearing)
Marketable pbligauicns : „
$17,039
$17,041
Treasury bills ...........
34,136
34,304
Certificates of indebtedness .......
18,261
23,497
Treasury notes
106,448 - 119,323
Treasury bonds ....,•....• •...• ••
180
: 196
Postal savings and other bonds • ••. • __
189,606
181,319
Total marketable obligations .••
Change during
fiscal year
1946
‘ $ -2
+668
- 5,236
+12,875
-16
+8,287
Nonmarketable obligations:
10,136
Treasury savings notes ..............
45,586
United,States Savings bonds ........
505
Depositary bonds .*•...*»• • •»••♦*.»••• __
56,226
Total nonmark stable obligations•
6,711
49,035
427
56,173
-53
237,545
245,779
+ 8 ,2 3 4
2
10
1,848
8
501
2
11
2,155
9
657
+1
+307
+1
+156
13
—2
6,747
5,910
684
5,240
6,699
+602
+96
+2,053
-48
4
97
4
120
+23
37
461
49
779
+12
+318
18,812
22,332
+3,520
269
376
+107
1,028
1,029
58
877
-970
-152
258,682
269,422
+ 10,740
Total public issues
»*
Special Issues (interest-bearing)
Retirement Accounts:
Alaska Railroad Retirement Fund •..•
Canal Zone Retirement Fund .....». •»* •
Civil Service Retirement Fund ••*• ••
Foreign Servi.ce Retirement Fund ....
Railroad Retirement Account ........
Special funds:
Adjusted Service Certificate Fund .♦
Federal Old-Age and Survivors
Insurance Trust Fund ,*.•••••*.•..•
Government Life Insurance Fund ,....
National Service Life Insurance Fund
Unemployment Trust Fund
Investment Accounts:
Canal Zone Postal Savings System ...
Federal Deposit Insurance Corporation
Federal Savings and Loan Insurance
Corporation •.......... •............ .
Postal Savings System.»... *»•♦•*•••••
Total special issues ....**•*•••
Matured debt on which interest has ceased
Debt bearing no interest:
Excess profits tax refund bonds ♦•••••
O t h e r .... ......
Grand Total
15 '
5,308
588
3,187
-3,425'
+3,449
-78
-
■ —
Note: — Figures are rounded to the nearest million and do noo necessarily
add to totals shown*
ïhe direct debt reached its. peak on February 28, 1946, when it amounted
to$279j,214,000,QQO.. Due to prompt cancellation of war contracts, speedy
demobilization of the armed forces,,and curtailment of war emergency agencies,
combined with other factors which improved the budgetary outlook, a sub
stantial part of the money raised during the Victory Loan was not required to finance Government expenditures.. Consequently, since the end of February;
a substantial cja'D^ reduction program has- been under way. About $10,243*000,000
of maturing and called marketable issues have been paid off (exclusive of the
$2 billion pay-off of the Treasury notes maturing July 1 which was announced
on June 14, 194b). To the extent that the maturing obligations wrere not paid
off, they were refunded into
one-year certificates of indebtedness., ,
Other'public debt transactions which have taken place during the fiscal year
have resulted i n ’a further net reduction in.the debt. The followingttable • .
shows .the securities which have been paid off and the extent to-whic’
ç,they;
have 'been refunded."into
certificates of indebtedness:
7/8%.
7/8%
Date of
refunding
Description
or reof security
demotion. '
Amount of
maturing:
' lOOUC
•
0-
7/8%,
Certify . $4,147 ...
3/ .1/46
I/o Note
1,291.
3/15/46’:
3-3/4% Bond '
3 /15/ 46.
489
; ■7/8% Certif. :. 4,811
4/ 1/46
7/8% Certif.
5/ 1/46
7/3% Certif.
6/ 1/46
4,799
1,036 .
3% Bond
6/15/46
3-1/8% Bond
819
6/15/46
1,519
« •• • •« •
18,971
""" ~
Method of retirement- (dollar figures are in millions)
; Cash ■■■ —... ...■■■■■■■■--■■■- Exchange...
..
■■1
Amount
Amount
For
%
y014
1 ,2 9 1
■ 489
1,991
1,579
2,024
1,0 36
819
10,243_
%
2 4 .5
$3,133 75.5 .7/8% Certif*
.—
:—
1 0 0.0 ••
1/
—
—100.0-.
1/ .
Certif.
;
7/8%
2,8
2
‘
0
’
58.6
41*4
100.0
■ if...—
42.2
2,775 57.8 1/8% Certif.
—
100.0
1/
—
—
100.0 • U
54.0
8,128
46.0
Of the. $18,971,000,‘000 marketable-debt, maturing or called for payment .
from March 1 through'June 15, commercial banks- reporting in the Treasury-;.,-^«
Survey of Ownership, of United States Government Securities held about
'
another 18% was ‘held'
Federal Reserve Banks; and 32% by rionbarik investors.and nonreporting banks.; The following table shows the ownership distribution .
of the matured and called issues according to the. latest reports received .
in the Treasury Survey of Ownership prior to the date of payment in each case.
bf
1/
No exchange offered
3Q%y
(In millions of dollars)
Maturity or
call date
Security
7/8$ certi
ficates
1$ note
March 15 •*»•
3-3/4$ bond
March 15, *•• ♦
7/8$ certi
April 1
••
ficates
7/8$ certi
May 1. *. • *•••
ficates
7/8$
certi
June 1 •••••-*
ficates
June 15 .*••• • _3$ bond
June 15 »*••••■ 3-1/8$ bond
Total
Mount
outstands
ing
Reported ownership
~
Commer- Federal Other Date of
cial
Reserve inves- Reports
banks Banks tors
1/
^>4,147
1,291
489
$2,544
1,007
213
. $953
74
44
$650
209
232
Feb* 28
Feb* 28
Feb* 28
24^5
100¿0
100.0
4,811
2,459
1,318
1,034
Mar*- 31
41 »4
1,579
964
362
253
Apr* 30
100*0
4,799
1,356
• 58O
2,863
1,036
526
819
424
100
48
410
346
Apr* 30
Apr* 30
Apr* 30
42*2
100*0
100.0
18,971
9,493
3,479
5,997
March 1 •••*#-
Total **•»••••••
Percent
of issue
paid
dff.
54*0
AVERAGE INTEREST RATE
Interest payments on the public debt during the fiscal year 1946
amounted to $4,722,000,000, an all-time high, which is $1,105,000,000,..,
more than was paid in 1945. The average interest rate on the interestbearing debt increased from 1.936$ on June 30, 1945, to 1*99o 7<> on
June 30, 1946* This increase in the general average was due to several
factors, one of which was the retirement of $6,608,000,000 of 7/8$ cer- .
tificates of indebtedness since the end of February., Special, issues,'
which carried an average interest rate on. June 30, 1946 of 2.-448$, or
about 1/2$ above the general average, were increased during the year by
con nnQ 000. The following table shows the trend of average interest
rates for the various types of interest-bearing securities, as well as
the general average:
l/
Treasury Survey of the Ownership of Securities Issued or Guaranteed
by the United States.
Note:
Figures are rounded to nearest million and will not necessarily
add to totals*
- 9
Marketable -
End of
month
13}&
June......
J u l y .....
August ....
September,.
October.,.•
November...
December..•
1946
January •..
February,..
March .....
April .....
May ...... •
June ... ..
;‘r
Bonds
Notes
Ctfs. Bills
¿/
2.315
1.204
l,20 h
1.204
1.204
1.204
1.204
I.2I 5
.875
.875
.875
.875.875
.875
.875
2 .3 1 4
2.3l4
2.309
2.309
2.312
2.323
2.324, • 1.270
2.325
2.319
2.319
2.319
2.307
1.270
1.289
1.289
1.289
1.289
•> s.T.f Nonmarketable
.381
.38 1 .m
.381
,381
.381
.380
.381
Special General
Savings' Tax and
'bbnds savings Other ‘issues average
notes
1.0 76
2.789
.
1.0
76
2,1789
2.7 88
2.788
2,787
2.787
2 .7 2 6
2 ,0
2 ,0
2 .0
2.0
2.0
2.0
2.0
1.0 76
1.0]p
1.070
1.070
1.070
2 .4 3 6
2.^ 63
2.459
2.455
2.46o
2.459
2. 480
'“***
.875 . .381
.381
.875
.381
.875
.381
.875
.381
.875
.381
.875
JSk
2.0
2.0
2.0
2.0
2.0
2.0
1.070
2.
I .070
2.783
2.781 •1.070
1.070
2.780
1 .070 .
2.778
1.070
2.777
1.936
1.943
1.945
1.9 43
1.945
‘1.950
1.965
**»•>***
2 .4 9 4
2.
. 1.970
1.972
2.493
1.979
2 .U98 ■ 1.989
2.h9-9. . 1.996
2.448 • 1.996
Eg
m iw
STATES SAVINGS BONDS
;
;; ’;
’*
While sales of savings bonds decreased and redemptions increased in the
fiscal year 1946 compared with the previous year, sales (including accrued ^
discount) exceeded redemptions by $3»467,000,000. Sales have held up
. ‘ *;
remarkably well, notwithstanding the termination of the war loan drives,
averaging better than $650,000,000 a month since January 1946. Redemptions,
contrary to the fears of many have not been unreasonable. (They reached their
high point in March 1946, when redemptions of all series of savings bonds .
amounted to about $634,000,000, followed by $621,000,000 in April, $552,000,000
in May, and $519*000,000 in June. Possibly an even better gauge is^a comparison of redemptions with amounts outstanding. Redemptions of Series E Bonds
stated as a percentage of the amount of E Bonds outstanding amounted to 1.45
percent in June 1946, and were lower on this basis than in any month sine©; '
.
July. 19^5.
.
.
:;
’ . ;
J’
j
'
S
S
The redemption of savings bonds should be viewed in the light of
the fact that these bonds are nontransferable and are redeemable at. an^r
time after fixed periods (60 days for Series E Bonds) from date of issue.
1/
Computed on true discount basis.
-
10
-
These features were especially incorporated in the bonds to adapt them
primarily fbr the investment of'savings of individuals of limited means
and so that’they could be readily redeemed to meet emergencies without!
loss 'of‘principal."following tables show (a) sales and redemptions
of Series E, :F, and 0 savings bonds for the fiscal years 19^1 to I 9 U 6' and
for each month of the current fiscal year, arid (b) a monthly comparison of
sales and redemptions of‘all series of savings bonds for the --fiscal-years
I9U 5 and 19 U 6 :
Sales and .Redemptions
.
*
Series E, F t and & Savings Bonds
J
' (in millions)
LOUS at
ai» UUi
term redemption
icuciu
(Sales include accrued
redemptions
current
valué»)
accruea discount;
aisc ount; reaemprn
^bales
Series 0
Series F •
.. Seri es E
Period
•Bedomptions . Sales
Sales
Redemptions
Sales
'Rédemp
tions 3
Fiscal year:
I9 U1 »•*•»♦*••
I9 U 2 .........
19*3'..... .
I9UU ....... ..
19^5 .........
19^6 ...... .
Month:
I W 5:
July ......... .
August .......
September ....
October ......
November .....
December .....
$ 203
3,528
■ g,30U
11,938
11 ,SIS
7,173
if
2,100
3 ,stó
5,912
1,069
599
1+51
537
293
953
iqU6:
,'
... * -,,
January ......
February .....
March .......
April ........
May ..........
June .........
Less than $500»000
$ 67
p5
76O
Sll
69 s
UUo
y
$ bO
6 S9
375
Us 5
U87
562
U7 U
U 90
i'
ÓS5
Uoo
U 07
U 2U
381
373
.
. 5U1
U92
550
5U 6
U69
U 19
•
1/
$ 3
IT
5S
89
1 U9
/
S
51
S
23
S
20
10
10
56 ... .10 ,
S6
• 13
..
¿
UU
32
30
32
27
2S
L
$ 395
2,032
2,759
2,876
2,658
2.U65
215
107
76
107
265
262
4
‘$ '1 ‘
* îê
55
13 U
220
3 US
22
22
20
23
26
31
C.
,
1U
. 27s
15
16
13
17
16
225
22 s
250
225
226
33
30
37
31
37
36
n
Sales and Redemptions
All Series of Savings Bonds
(dollars in millions)
Year
and
Month
Outstanding
at end
of month 1/
3ash sales .
Redemptions
mcluding
discount
accruals
•: A"' ‘7 7; \
*.
1944
• •••♦ $2,158.6
August ..
. 624*4
.<722.8
September..
October .,. . 721.9
November .. 1,046.0
December ,. '2,417.8
t
1945
January ... 1,120.9
881.0
February .*
March •,.•,
925.1
869.7’
April •••••
1,567.9
J u n e .... . 2,221.7
Total
Fiscal
Year 1945 15,277.8
July ...... 1,350-9
737.7
August •..•
554.8
September .•
661.2
October ... .
November .. . 1,219.7
December •. . 1 ,310.2
1946
January ... 1,023.3
666,1.
February ..
672.3
March ..«..
713.2
April ..,..
639.2
May .......
635.5
J u n e .....
Total
Fiscal
Year 194^ 10,184.2
$226,9
278.8
283.0
400.6
382.4
341.4
■ 3 2 3 ,1
4 6 3 .8
403.6
426.5
403.2
All Series
’■*•- ;/ ’■
§36 ,537.8
36,883.5
37,323.3
37,644.7
-38,308.2
40 ,360,8
f\
41,140.3
41,698.2
.
42 ,159.5
42,625.6
. 43,767.0
45,585.6
• '• Series E-' §
.. ■ , -,
•428.4
531.1
528,4
616.1
533.2
559.3
-629.5
565.3
634.3
620,6
552.2
518.6
.
46,508.2
46 ,7 1 4 .8
46,741.2
46,786,3...
47,472,8...
48,223.7.
* .87
1.07....
1-.10 •
1.58
1*47
1.31
.83
♦77 .7,
1.10
.95 .97
.88
1.17
1.10
1.52
1*32
1.35
1.21
1.26
1.62
1*63
1.88
1.57-,
1.59.
.92
1.14
1.13
;• 1.32
- 1*12
.1.16.
1.29 . . ... -Iv75.
48,63-7.4.
.
1.60
1.16
48,718.3
1.80
. 48,756,3.... ....1*39...
1.79
1.27
48,849.0
1.54
48,935.9
1.13
.1^06
.
1.45
49,052.7
j
!
A
! . 6,717.1
1
Includes matured issues,
, •••-
.62
♦76
♦7.6 -*•
1,06
1 .0 0 ••
.91
4,298.4
i
1/
•
365.3
K
Percentage of redemptions
. to outstanding-....
1 *; ^
w 12 -
THE GUARANTEED DEBT
•On June 30, 1946, as was the case on June 30, 1945, only two groups
"oi unmatured obligations of governmental corporations and credit agencies,
guaranteed as to principal and interest,-except those held by the Secretary
of the Treasury, remained outstanding, totalling 4467,000,000 as-compared
with 4409,000,000 on June 30, 1945. The unmatured obligations include
4424,000,000 of demand obligations of the Commodity Credit Corporation
issued to commercial banks in connection with commodity transactions, and
,„43,000,000 of debentures issued by the Federal Housing'administration in
•connection with'mortgage insurance. During the year the securities of
governmental corporations and credit a rendes held directly by the Treasury
decreased from ^>12,169,000,000 to yll,673,000,000*
A statement of guaranteed obligations outstanding as of'June 30, 1945,
and- June 30, 1946, is as follows :
.:
Statement of amount of outstanding matured and
unmatured obligations guaranteed as to principal and
(In millions of dollars)
1946
Public Issues:
Commodity Credit Corporation ......
Federal Farm mortgage Corp.
Federal Housing Administration .••<
Federal Public {ousing Authority ..
Home Owners1 Loan Corporation .....
Reconstruction Finance Corporation
Subtotal
• Increase-( + )
*Decrease•(- )
1945
1946 ■
375
8
34
4f 4
449
4
43
+ 9
16
6
-10
433
.476
.4-43
1,591
108
383
1,010
9,020
57
1,3 01
13
360
737
9,205
57
-290
-95
-23
-273
+ 185
12,169
11,673
-496
12,602
12,602
12,149
-453
-4
Issues held by the Treasury raid
reflected in the public debt:
Commodity Credit Corporation ......
Federal Farm mortgage Corporation .
Federal Public xiousing Autnority »«
H me Owners1 Loan Corporation .....
Reconstruction Finance Corporation
Tennessee Valley Authority •*•*••*<
Grand Total....... *...... .
*
AttachmentBo. 1,
BUDGETARY RECEIPTS AMD EXPENDITUREST FISCAL YEARS 1945 AND 19&6
(In millions of dollars)
1945
Receiptsi
Internal revenue:
Income tax:
Withheld b y employers (Current Tax Payment
Act of 1943) ....................................
Other . . . . ....... ......................... .
Miscellaneous internal revenue .............. .
Social security taxes ....................... .........
Taxes upon carriers and their employees .............
Railroad unemployment insurance contributions ..........
Customs .................... ...... ........... ............
miscellaneous receipts ...................... ........ .
1
Total receipts
Deduct net appropriations to Federal old-age and survivors
insurance trust f u n d ...... ...............................
Net receipts .......... .
Expenditures:
I.
General:
Departmental (not otherwise classified) .........
Agriculture Department:
Agricultural Adjustment A g e n c y .... ..........
Commodity Credit Corporation:
Postwar price support of agriculture . . . . . .
Restoration of capital impairment ........ .
Other .......................... .
Bretton Hoods Agreements Act: International Bank
Export-Import Bank of Washington - capita.'- 3 took
Federal Security Agency:
Social Security Board .............. ..........
Other ........ ............................. .
Federal V/orks Agency ................... .... .........
Interior Department - Reclamation Projects .....
National Housing Agency .......... .
Faname. C a n a l ......................................
Post Office Department (deficiency) .............
Railroad Retirement Board .......................
River and harbor work and flood control .........
Surplus property disposal agencies ..............
Tennessee Valley Authority ....... ...... .
Treasury Department:
Interest on the public debt ...........
Refunds of taxes and duties:
Excess Profits Tax Refund Bonds .......... .
Other ,................ ....... .............
Veterans' Administration ........................ .
Subtotal .............. .
II.
I
War Activities :
War Department ........ ............ .................
Navy Department .......... ........ ......... .........
Agriculture Department ............. ....... .
Federal Security Agency ........................ .....
Federal 'Works Agency ......... ...... ................
National Housing Agency ............. .
Treasury Department ........................ .
United States Maritime Commission ............ .
War Shipping Administration ..................... .
Aid to China ........... ....... ............ .
Payments for United Nations Relief and
Rehabilitation Administration .....................
Surplus property disposal agencies .............. .
Other ....................... ............. ...........
S u b t o t a l .... ........... ........... .
III.
Transfers to trost accounts, etc.:
Adjusted service certificate fund ...................
Federal contributions to District of Columbia .....
Government employees' retirement funds (United
States share) ............... ................. .
National service life insurance fund ...............
Railroad retirement account ......'..... .
Railroad unemployment insurance administration fund
transfers to unemployment trust fund (Act
October 10, 1940) .................................
Surplus Commodity stamps, agriculture ..............
Subtotal ...................
Total expenditures (excluding public
debt retirements) ........... .
1
Net deficit
1 0 ,2 8 9
2 4 ,8 8 4
6 ,9 4 9
1 ,4 9 4
285
13
355
3 ,4 7 0
4 7 ,7 4 0
1946
..
9 ,3 9 2
2 1 ,4 9 3
7 ,7 2 5
1 ,4 1 8
283
13
435
- 3 ,4 8 0
-8 9 7
- 3 ,3 9 1
/776
-7 6
-2
4 4 ,2 3 9
- 3 ,5 0 1
*
Excess of credits, deduct
Less than $500,000
1/
Included under "General" in 1945 and "War activities" in 1946.
J
/8 0
AO
1 ,2 8 3
1 ,2 0 1
-6 2
4 6 ,4 5 7
4 3 ,0 3 8
- 3 ,4 1 9
881
957
/76
281
292
A i
“ 257
14 5
•
500
/50Q
-2 5 7
-2 4
A59
/ 6 74
455
94
10 0
50
12
9
1
6
142
11
20
-
12 1
15 9
6 74
516
10 8
12 2
61
40
18
16 1
6
16 8
/6 1
A i
/22
A l
/28
/9
A60
/2 6
-11
y
29
3 ,6 1 7
4 ,7 2 2
A , 105
894
821
934
88
2 ,9 4 7
2 ,8 7 1
-8 0 6
A , 1*6
A , 9 37
8 ,7 3 0
1 4 ,5 5 9
A , 829
50,3<>9
3 0 ,0 4 7
1 ,1 9 8
12 2
18 5
70
1 ,4 6 2
3 ,2 2 7
2 ,0 4 2
14 0
2 7 ,8 5 2
1 5 ,1 6 1
1 ,0 4 1
60
91
80
695
694
1 ,3 6 7
12 0
- 2 2 ,5 4 7
- 1 4 ,8 6
-1 5 7
-6 2
-°4
Ao
-7 6 7
-2 ,5 3 3
-6 7 5
-2 0
114
1/
1 ,0 2 2
664
10 6
6 11
/5 5 0
A06
-4 1 1
9 0 ,0 2 9
4 8 ,5 4 2
- 4 1 ,4 8 7
6
-9
-
9
6
19 7
1 ,1 1 7
309
9
247 ‘
1 ,3 8 1
292
/5°
P U r
-1 7
*
10
a/ is
1 ,6 4 6
1 ,9 1 8
/272
1 0 0 ,4 0 5
6 5 ,0 1 9
-3 5 ', 386
5 3 ,9 4 8
2 1 ,9 8 1
- 3 1 ,9 6 7
& /
N o t e : - Figures are rounded to the nearest million and will not necessarily add to the totals shown.
q
Increase (»)
Decrease (-)
.
A
-1 8
Attachment No. 2
Summary of Government expenditures :
for the fiscal years 1941 to 194-6* showing
budgetary items and transactions- of Government corporations
(In million's of dollars)
Fiscal
year
1941
Fiscal
year
1942
Fiscal
year
1943
Fiscal .Fiscal
year
year
.
'-1945
.
1944
Fiscal
year
1946
Budgetary items:
War activities ....
$6,301 $26,011 $72,109 $87,039
$90,029
$*+8,542
3,617
722
Other, activities:
Interest •••••#••
1,1 11
1 ,2 6 0
1,308
Tax refunds •••••
90
94
79
563
556
602
730
2 ,0 60
^,253
4,647
4,475
3,580
3*099
2,984
4,468
Total other
activities ••••
6,410 . 6,386
6,070
6,705 ' 10,375
16,^77
Total budgetary
items .........
12 ,711J 32,397
65,019
Veterans* Adminis
tration .......
Other
Government corporations
(net), excluding sales
and redemptions of
market obligations
.
1/
2/
*. «•,
2,609 •
"•«
I/267- 1/1,715
f
1/ 3 ,03 *+
-
78,179
93,744
100,405
1,069
1,815
1,5 00
1,529
2/374
Grand total ...... 13,780
....
34,212
79,679
95,273
100,030
2/ 1 ,01*6 :
63,972
Includes refunds of $134 million in 1944, $894 million in 1945* and
$88 million in 1946 in the form of Excess profits Tax Refund Bonds.
Excess of credits* deduct.
Attachment No# 3
Summary, of expenditures other than war activities*
interest on public debt, tax refunds, an.d Veterans1
Administration, by fiscal years
(In millions of dollars)'
Calassification
Departmental (not otherwise
classified) »•«»».•»•»..••*•••
Agriculture Department' ........* •
Export-Import Bank
*
International Bank .............
federal Security Agency: , '
Civilian Conservation Corps#**
National Youth Admin. ...«-•**%«"'
Social Security >Board ..... .
Other ....... ...... .
Total federal Security Agency.
1942
1943
1944
1945
685
811 ■ 1,109
7^2
1,046
793
■■833':
892
683
1941
. 676
Gov’t. Employees Retirement Funds
National Housing Agency ........ • •
Rai lroad Retir ement Board ..... 2/
River and harbor work and
flood control.... ..... .
Tennessee Valley Authority ......-#
Postal deficiency •. A. •.*4#,..#v**V
Other
»* ••
957
• 896 -
674
159
257
90 *:
423
66
163
88
473
75
18 •
1/
474
81
468
88 ■
435
94 '
516
108
836
799
573
576
;549
624
Federal Works Agency:
69 '
Public ^Buildings Admin*' ....... .
Public Ac ads Admin • ....... i•. •
174 126
Public Works Admin#
.... .
Work Projects Admin.
■«##. ,
t 1,285
Total Federal Works Agency. ..
1946
6.0
153 .
40
■882.
12
5
19
100
122
197
12
324 •
247
40
307
I42
64
168
29
161
85
3,.580. ’ 3,099 ' 2,984
4,468
1
447
93
17
139
103
18.
yk‘
4
107
15
228
219
51
30 •
121
191
127
18
!35
201
111
4,475
46
U
■17 v
299'-
1,654 * 1,136 •
4,647
57
52* ■ . 46 66
49 ’
48.
87
105-
•139
'177 '
15
‘280'4
■
177
65
-29
72
20
1
Figures are rounded arid will not- necessarily add to totals#
1/
2j
Some functions abolished and other functions transferred to^other agencies#
Includes transfers to Railroad Retirement Account and to Railroad Unemploy'“"'
ment Insurance Account#
Attachment No• 4
WAR EXPENDITURES
Total expenditures for defense and iwar activities since July 1*
194-0, have amounted to $339,311,000,000
•
Since December 7, 194-1, these
expenditures have amounted to $ 325 ,055*000,000* The monthly trend of
budgetary war expenditures and total expenditures for war activities by
the Reconstruction Finance Corporation and its subsidiaries, during the
fiscal years 194-1 to 1946, are shown in the following table:
(In millions of dollars)
l/
Fiscal Year
1941
1942
1943
1944,
1945
1946
$969
1,131
1,330
1,537
1,448
2/1,850
:2 ,1 0 4
2,208
2,809
3,2.38
$4,498
4i8S4
5,384
5,481
6,042
5,825
5,947
5,770
6,744
3,560
3,829
. 7,092
7,469
$ 6,432
7,232
6,952
6,989
7,541
6,718
7,138
7,518
7,726
7,346
7,879
7,567
$7 ,2 0 1
7,571
6,998
7,479
7,401
7,503
7,551
6,948
8,246
7,139
8,156
7,837
$7,325
August .....
September •••
October .....
November ....
December ••••.
January •••.•
February ....
ivld.eehi •••»*••
April
Mdy ••••••••
June .*«'«...
$199
223
241
311
393
495
589
610
769
782
857
832
Total
budgetary
expenditures.
6,301
26,011
72,109
87,039
90,029
48,^42
Total fiscal year
expenditures for
war activities by
Reconstruction
Finance Corporation
and subsidia
ries ......
354
2,255
3 >189
28,266
75*298
Grand total
l/
2/
6,655
6,974
6,399
5,367
5,126
4,226
4,245
3,417
2,702
2,550
2,560
2,182
2,442
2,682 _____ 472________328
89,721
90,501
48,870
Figures are rounded to nearest million and Yri.ll not necessarily add
to totals shoY/n*
First month of war, December 1941*
Attachment No« 5
TREASURY ISSUES AND RETIREMENTS OF MARKETABLE OBLIGATIONS
FISCAL YEAR VUb
(Dollar amounts in millions)
Description of New Treasury Security
Date of
Security
Amount Issued
Call aid
Maturity
Dates
Description of Security Redeemed or Refunded
Call and
For Cash In Exchange Total Class of Security Maturit y
Dates
■"v ■■
Date of
Original
Issue
Amount
For Cash
Redemption
Treasury Bonds
2ij6
1967-72
1959-62
1950 1/
1967-72
1959-62
2ij6
2j56
6A/45
6A/45
6A/45
1/
1/
2/
2/
—
—
IIA 5/45
11A5/45
6A5/67-72
6A5/59-62
12A5/50
12A5/67-72
12A 5/59-62
♦768
777
270
11,689
3,470
—
—
—
—
--
♦768
777
270
11,689
3^470
—
—
—
—
—
—
—
—
—
—
—
—
—
---------
---------
—
—
—
—
—
—
—
—
rr— r
w.„_
IM M
1--------
—
M -1.,Tr
—
H- -
-----
------ r-
„
r
356 Conversion Boni
1À/46
3-3/456 Treasury
Bond
3A5/46-56
3—I/Ö56 Treasury
Band
6A5/46^9
356 Treasury Bond
6A5/46-48
_
,M
-
r- , __ _
,- - -
1A A 6
$16
3A 5/26
489
6A5/31
6A5/34
819
1,036
llA /4 1
1,291
Treasury Notaa
1$ Treasury Note
3/I5/46
Certificate« of Tftdehtgdiyss
7/8*
7/8J6
7/856
E-1946 1/
F-1946
0-1946
7/856
7/856
336
6A/45
8A/45
9A/45
6A /46
8A/46
9A/46
H-I946
lOA/45
IO A /46
—
3,440
J- I 946
12A/45
llA /46
—
3,778
♦2,470
4,336
336
2,470 7/856 Certificate
Î3,429 7/856 Certificate
l 907 2-3/456 Treasury
Bond
3,440 7/8$ Certificate
'2,932 7/8$ Certificate
438 3/4Ì6 Treasury
12/3/45
1A/46
12A /46
lA/47
3,768
7/8J6
7/856
7/856
B-1947
C-1947
D -I947
2A/46
3A/46
4/ I/46
2A/47
3/1/47
4A/47
—
7/856
E-1947
6/1/46
6A/47
—
21,078
Bond
12/15/45
12A5/37
Note
lA /46
12/1/44
2A/45
3A/45
4/1/45
5A/45
6A/45
1/ Seventh War Loan issues paid for in fiscal ¡year 1946.
2/ Victory Loan Issues.
3/ The Treasury planned to retire about $1,000,000,000 of the March 1
certificate on cash redemption.
£/ The Treasury planned to retire about $2,000,000,000 of the April 1
m i t m , certificate on cash-redemption.
■ ' ^Hl
... ,
11
3,330
3,768
3,330 .9056 Treasury
4,954
3,133
2,820
4,954 7/8/6 Certificate
3,133 7/8J6 Certificate
2,820 7/856 Certificate
2,775
2,775 7/856 Certificate
.. .
m
....■■■■■■■■■.
31,036
52,114
9/L6/35
IO A /44
12A/44
12A8/40
7/856 Certificate
Total
9A5/45-47
lOA/45
12A/45
8A/44
9A/44
12A5/45
Note
408 2-1/2$ Treasury
K-1946 2J
A-1947
8A/45
9A/45
2/ 1/46
3/1/46
4A/46
5/1/46
6A/46
85
89
3/ 1,014
4/ 1,991
1,579
5/ 2,024
12,787
¿/ The Treasury planned to retire about $2,000,000,000 of
the June 1 certificate on cash redemption.
Note:
■S
Figures are rounded to the nearest million and do not
necessarily add to totals.
■
Attachment No* 6
United States Savings Bonds Issued end Redeemed Through June 30, 19^6
(Dollar amounts in millions - rounded and will not necessarily add to totals)
Amount
Amount
Issued l/ ¡Redeemed
I
I
■'
637
986
237
23S
1^5
139
186
1
193
5
6
Tot^l Series
M92
-
I
9
U
0
,
5
7
s
0
9
7
i,u35
•
6,508
•»>•■*>■'»*'»•■•*
* •*’
** ** ».*> *? 10,668
»•••»♦
12,531
9,810
* •>••■•**•■•■* *.*
(6 mo.) ....
2,012
h
1
2 1 * 8 2
18*86
16.38
13.95
3.383
26.33
253
1,818
3,530
1,182
U.691
7,137
8 ,UsU
7,125
1 ,85^
17.63
27.93
33.09
32 .3O
27.37
7.85
30,^73
29.07
. o
>+7
2,685
158
J
!
12,^91
Unclassified Redemptions
Series Ar**E ^ ^^
^
rS
92,9^
51-85
25 *U8
221
U 2U
U98
800
98U
*+37
1,209
* +
Total Series E ***••••*•**
Total Series A
$ 18
U
1
!
Series Ej
Seri©s E-I9 U1
S e n e s E—I9 U 2
Series E—I9U3
Series E-I9 UU
Series E—I9 U5
Series E-I9 U6
$
9
1
D
I
1
255
Series
Series
............
Series D—I9U1 *.*••*••••*♦
- 1 9 3 9
1 /
!
Series A-D;
Series A-1935 (matured)**. $
Series B-193& ........*** .j
Series 0-1937 *» . , « * • » • *j
D
I
Amount Out-jPercent redeemed
standing 2/iof amount issued
■
115
>*7,556 .
.........
-115
i
33 ,7^1
13,815
29.05
!
r
Series E
Series
Series
Series
Series
Series
Series
and G:
E and G-I9 UI
E and G-I9U 2
E and G-19^3
E and G-I9 UU
E and G-<-l9U5
F and G-19 U6
*••••«
.....
1
j
1 U6
326
316
220
i»523
3
.
1
6
s
3.3*+^
.*..*.
•
•
•
•
*
3 , 6 7 8
3,138
«
(6 mo
1
,
5
^
7
6
1,377
2 ,8*4-2
3,028
6
1
1
!
3,158
3.0 62
i,5UU
¡
Total Series E and G .....
•
1
1,085
16.397
■
9.59
10.29
9,.u5
5.98
2 *Up
.65
1
■■
6
1
j.
1
5
,
3
1
.
6
2
2
.
1
Total all series 5/
1/
2J
3/
5/
5/
.1
63,953
1
^9,053
iU,900
j
2 3 . 3 0
-_ _ _ _ _ _ _ _ _
Includes accrued discountCurrent redemntion values*
Includes matured bonds which have not yet Ueen presented for redemption*
jf
Includes $U6 million reported on public debt statement as «unclassified sales *
Includes Series A-1935 (matured)., rnd therefore does not agree with totals unde;
interest-hearing debt on Public Debt Statement*
No* A-69
(RE* 75^0 ~ Ext* 71511)
'
For Release Wednesday P,M.
Papers, June 26, 194&
•
NATIONAL HOUSING AGENCY
OFFICE OF PRICE ADMINISTRATION
DEPARTMENT OF JUSTICE
TREASURY DEPARTMENT
Four major agencies of the Government today announced plans
for an intensive, combined attack on the black market in lumber and
*•
t
.
•
other building materials, designed particularly to halt diversion of
these commodities from veterans housing*
Plans for the drive were made public in a joint statement issued
by Housing Expediter Wilson W. Wyatt, Attorney General Tom C* Clark, Treasury
Secretary John W. Snyder, and OPA Administrator Paul A* Porter*
The statement made clear that the full authority of the Government
will be used to strike at the heart of the black market*
Measures to be
employed will include criminal prosecutions, tax investigations and prosecu
tions, treble damage suits, as well as injunctions and similar remedies*
It further pointed out that the drive is directed against all levels of
operations, including producers of materials, truckers, distributors, and
consumers*
.
'
•
•
The announcement disclosed that a 11test run,f made by the Internal
Revenue Bureau of the Treasury, at the direction of Commissioner Joseph D.
Nunan, Jr., had confirmed the theory of enforcement officials that the black
marketeer is often a tax violator as well, at once cheating the people and
his government.
To test this theory, OPA had supplied Internal Revenue with the
names of 20 known or suspected lumber black market operators, who are being
thoroughly investigated by Interna.1 Revenue*
Preliminary reports from the
investigation indicate probable tax frauds growing out of black,market
operations in some 15 cases, while additional taxes will be produced in
others.
-
In view
of the
2
-
success in these cases, OPA will supply Internal
Revenue on a continuing basis with additional lists of suspected black«
marketeers.
The Treasury, Secretary Snyder said, will investigate all of
these, thus protecting the revenue and continuing the Department* s part in
fighting the black market.
He also stated that, in accordance with a ruling
made some time ago, the Treasury would disallow as a business expense amounts
paid over ceiling, thus reaching buyers as well as sellers.
At the same time, Attorney General Clark declared that "the
facilities of the Department of Justice are behind this effort by the
Government to eradicate black market operations from the building field.1*
He revealed that reports on some violators have already been re
ferred to United States Attorneys for criminal prosecution.
OPA Administrator Porter pointed to the substantial results being
attained by OPAfs now intensified drive against the black market, to which
that agency has assigned 600 investigators who have been especially' trained
to combat the various techniques used by black marketeers, such as up
grading," cash on the side, "bets against delivery", and short measures. In
addition, special agents are xvorking in close cooperation with the commodity
investigators.
Housing Expediter Wyatt warned that the actions already taken by the
various Government agencies to close in on the building black market opera
tors "is only a forerunner of the crack-down the black marketeers may expect
from evory Government source,"
>
"One thing is certain, " Mr. Wyatt added, "and that is that this
Government is not going to permit bootleggers of lumber and other building
materials to continue to pile up their illegitimate profits at the expense
of the veterans and their families who are being deprived of decent shelter
because of black market operations.
"The Federal Government cannot and will not permit the diversion
of lumber and other scarce building materials from hemes for veterans into
the channels that sellers and purchasers of black market materials find more
profitable,"
NH 6915S
FOR IMMEDIATE RELEASE
July 2, 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: .
Country of Production
Quantity in Pounds
Is of April 30, I9U6
Signatory Countries:
Brazil
Colombia
Costa Rica
Cuba
Dominican Republic
Ecuador
El Salvador
Guatemala
Haiti
Honduras
Mexico
Nicaragua
Peru
Venezuela
Non-Signatory Countries:
TOTAL
853,l6U,080
398,607,567
17,706,970
290
17,^8,379
9»092,827
29 ,155.^31
u9.u35.u53
15,270,187
5,076,8a
U1.8U6.32U
11,938,128
2,379,907
32,837,179
26.992.u09
1,510,951»952
The above data reflects the amount of coffee for which
entries for consumption hare been reported as of April 3°,
and includes* the returned weights on a number of entries,
which returned weights have not previously been considered.
TREASURY DEPARTMENT
Washington
FOR IMMEDIATE RELEASE
Tuesday, July 2, 1946,
Press Service .
No. S-9
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;
Quantity in Pounds
As of April 30, 1946
Country of Production
Signatory Countries:
Brazil
Colombia
Costa Rica
Cuba
Dominican Republic
Ecuador
El Salvador
Guatemala
Haiti
Honduras*
Mexico
Nicaragua
Peru
Venezuela
853,164,080
398,607,567
17,706,970
290
17,428,379
9,092,827
29,155,431
49,435,453
15,270,187
5,076,821
41,846,324
11,958,128
2,379,907
32,837,179
Non-Signatory Countries:
26,992,409
TOTAL
1,510,951,952
The above data reflects the amount of coffee for which
entries for consumption have been reported as of April 30,
and includes the returned weights on a number of entries,
which returned weights have not previously been considered.
oOo
SM M
- 3 -
sold, redeemed or othervri.se 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. Ul8, 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 Till be made
by the Secretary of the Treasury of the amount and price range of accepted
bids.
Those submitting tenders Till 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 Thole 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 Till 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
July 11, 19U6________ .
The income derived from Treasury bills, Thether 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 19Ulj the amount of discount at v/hich bills issued here
under are sold shall not be considered to accrue until such bills shall be
$>
■7 /
m i
TREASURY DEPARTMENT
Washington .
3
•-— ■
J 0
FOR RELEASE, MORNING NEWSPAPERS,Friday, July 5, 1?U6___________ .
aptf"
The Secretary of the Treasury, by this public notice, invites tenders for
$ 1,300,000,000 , or thereabouts, of _ 2 l
-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
October 10, 19ii6
3^|X
out interest.
***
July 11, 19U6______
.> When the face amount
Trill be payable
> and
Trith-
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).
Tenders Trill be received at Federal Reserve Banks and Branches up to the
closing hour, two o ’clock p.m., Eastern Standard time,
Monday, July 8, 1?U6
Tenders trill not be received at the Treasury Department, Yifashington.
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, MORNING NEWSPAPER,
Friday, July 5, 1946.
-
. Pno&s Service
No. S-10
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 com
petitive and fixed-price bidding as hereinafter-.provided*
The
bills of this, series will, be dated July 11, .1946,/and will
mature October 10, .1946, when the face amount will be payable
without interest. They will be issued in bearer form only, and
m 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, July 8, 1946, Tenders will not be receivéd 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,f o r m s .and forwarded in the special en
velopes which will be supplied by Federal Reserve Banks or
Branches on application therefor.
Tenders will be received v^ithout 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
Ills applied for, unless the tenders are accompanied by an ex
press guaranty of payment by an incorporated bank or trust company •
4- . Im^ e^ latelY 'after the closing hour, tenders will be opened
at the Federal Reserve Banks and Branches, following which public
announcement will be made by the Secretary of the Treasury of
the amount and price range of accepted bids.
Those submitting
tenders will be advised of the acceptance or rejection thereof.
The Secretary of the Treasury expressly reserves the right to
a c c e p t o r reject any or all tenders, in whole or in part, and
his action in any such respect shall be final.
Subject to these
* T ^ V^ ° nS : te*ders for $200,000 or less from any one bidder
•
pit
*'
©utered on a fixed-price basis will be accepted in
. * 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 July 11, 1946.
-
2. -
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 shdll not have any special treat
ment, as such, under Federal tax Acts now- or hereafter enacted.
The bills shall be-subject to estate, inheritance, gift, or
other excise taxes, whether Federal or State, but shall be ex
empt from all taxation now of hereafter .imposed on the principal
or interest thereof by any State, o r 'any!of the possessions of
the United. States, or by any local taxing authority.
For pur
poses. 6f taxation the amount of discount,at which Treasury bills
are originally‘sold by the United States shall be considered to
be^interest,
Under Sections, 42 and 117 (a) (1) of the Internal
Revenue Code, as^amended by Section 115. of the Revenue Act of
1941, the amount'of'discount at which bills issued hereunder are
sold shall not be considered to'accrue until such bills shall be
sold, redeemed or otherwise disposed of, and such bills are ex
cluded -from consideration as capital assets. Accordingly, the
owner of Treasury b i l i e '(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 of on subsequent purchase, and the,amount actually
received either upon sale or redemption at maturity during the
taxable year for which the" return is made’,, as ordinary gain or
loss •
Treasury Department Circular No, 418, as'amended, and,this
notice, prescribe the terms of the Treasury bills and govern
the conditions of their issue*
Copies of the circular may be
obtained from any Federal Reserve Bank or Branch,
oOo
3* In the formulation of its policy recommendations as provided in
paragraph 1 hereof and in the implementation of any policies and programs ap
proved "by the President, the Committee shall he empowered^
(a) To negotiate and consult, directly or through its representatives,
with accredited representatives and agencies of other governments, with
public or private international bodies, with States and municipalities and
private and quasi—public organizations in the United States or abroad...
(b) Upon the written request of the Chairman, or his alternate, to
procure from all departments and agencies of the Government such records and
documents in their possession as may be necessary, relevant, or useful to
the Committee in the accomplishment of its objectives hereunder.
4* In carrying out its functions and duties, and within the limits of
available funds, the members of the Committee and its personnel are authorized
to engage in the necessary domestic and foreign travel* When permitted by
law and otherwise practicable, the Secretary of War and the Secretary of the
Havy shall provide appropriate travel assistance, including the furnishing
of available Government—owned transportation and other facilities#
HAHEtr S# TBUMAH
THE WHITE HOUSE,
«June 11, 1946
EXECUTIVE ORDER 9735
Establishing A Cabinet Committee on
Palestine and Related Problems
By virtue of the authority vested in me by the Constitution and the
statutes, and as President of the United States and Commander in Chief of
the Army and Eavy, it is hereby ordered as follows:
1# In view of the urgency of the solution of various problems
relating to the displaced Jews in Europe and to Palestine, there is here
by established under the Chairmanship of the Secretary of State, a Cabinet
Committee on Palestine and Related Problems (hereinafter referred to as the
Committee) composed of the Secretaries of State, War, and the Treasury* The
functions and duties of the Committee shall be?
(a)
To assist the President in the early consideration of the recommenda
tions of the Anglo-American Committee of Inquiry (hereinafter referred to as
the Anglo—.American Committee) and of the views which may be submitted as a
result of the consultations thereon, and in the determination of the steps to
be taken by this Government in regard to Palestine and related problems*
(b) To propose the specific measures considered necessary or appropriate
effectively to implement the decisions made by the President with regard to
Palestine and related problems.
(c) So far as raççjr be permitted by law, to implement and coordinate,
either directly or through the appropriate departments and agencies of the
United States Government, such policies or programs in respect of Palestine
and related problems as may be approved and authorized by the President*
(d) To perform such other tasks in connection with the functions and
duties described in subparagraphs (a), (b), and (c) above as the President
may from time to time direct*
2* Each member of the Committee shall designate a fully deputized alter
nate to act for and in his behalf* The alternates thus selected shall function
as the executive agency of the Committee and shall be known as the Board of
Alternates, whose Chairman shall be the alternate for the Secretary of State*
The Committee is hereby empowered:
(a) To fix its rules of conduct and procedures and the pattern of its in
ternal organization*
(b) To employ a Secretariat to be headed ,by a Secretary—General with
such deputies and assistants and such clerical and administrative personnel
as may be necessary*
(c) To utilize to the maximum extent possible by way of loan or other
wise such personnel, facilities, and services of the State, War, and Treasury
Departments as may be necessary or useful to the Committee in the accomplish
ment of its functions and duties*
(d) Subject to subparagraph (c) hereof and within the limits of funds
which may be made available to it, to employ necessary technical personnel,
consultants, or advisers without regard to the civil service laws and regula
tions, and to make provision for such supplies, facilities, and services as
may be necessary fully to discharge the Committee*s responsibilities*
(Q) Whenever necessary, to call upon the hea,ds of other departments
and agencies of the Government to supply experts or technical advisers to the
extent available to assist the Çonmittee or its staff in connection with its
objectives*
TREASURY DEPARTMENT
Washington
S - n
ID43338^RELEASE
Secretary Snyder today announced the appointment of
Herbert E. Gaston to be his alternate on the President’s
Cabinet Committee on Palestine and Related Problems.
Mr. Gaston is a Director and Vice Chairman of the ExportImport Bank.
He was Assistant Secretary of the Treasury
from June 1939 to December 1945, when he resigned to ac
cent appointment on the Bank Board.
The President’s Committee consists of the Secretaries
of State, Treasury and War.
An Executive Order of June 12,
1946, establishing the Committee, provided for the designa
tion by each member of a fully deputized alternate to act
for and in his behalf.
Secretary of State Byrnes has named
as his alternate Henry F. Grady, former Assistant Secretary
of State.
Secretary of War Patterson’s alternate is
Goldthwaite H. Dorr, New York attorney and during the war
Special Assistant to the Secretary of War.
The three alternates will leave by plane Wednesday for
London, to open discussions with British officials of prob
lems of the displaced Jews in Europe.
Attached is a copy of Executive Order 9735 pursuant to
which the Cabinet Committee was set up.
— oOo—
| |I
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' gi |
'
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. w , ||g g l.g p ?
,
.
j
,
-
■ ■' 1 _V ’
TREASURY DEPARTMENT
Washington
FOR IMMEDIATE RELEASE,
Monday, July 8, 1946
Press Service
No, S-ll
Secretary Snyder today announced the appointment of
Herbert E. Gaston to be his alternate on the President’s Cabinet
Committee on Palestine and Related Problems.
Mr. Gaston Is a
Director and Vice Chairman of the Export-Imnort Bank.
He was
Assistant Secretary of the Treasury from June 1939 to December
1945, when he resigned to accept appointment on the Bank Board.
The President’s Committee consists of the Secretaries of
State, Treasury and War.
An Executive Order of June 12, 1946,
establishing the Committee, provided for the designation by
each member of a fully deputized alternate to act for and in
his behalf.
Secretary of State Byrnes has named as his alter
nate Henry F. Grady, former Assistant Secretary of State.
Secretary of War Patterson’s alternate is Goldthwaite H. Dorr,
New York attorney and during the war Special Assistant to the
Secretary of War.
The three alternates will leave by plane Wednesday for
London, to open discussions with. British officials of prob
lems of the displaced Jews in Europe.
Attached is a copy of Executive Order 9735 pursuant to
which the Cabinet Committee was set up.
oOo
EXECUTIVE ORDER 9735
Establishing A Cabinet Coiranittee on
Palestine and Related Problems
By virtue of the authority vested in me by the Constitution and the
statutes, and as President of the United States and Commander in Chief of
the Army and Navy, it is hereby ordered as -follows:
1. In view of the urgency of the solution of various problems
relating to the displaced Jews in Europe and to Palestine, there is here
by established under the Chairmanship of the Secretary of State, a Cabinet
Committee on Palestine and Related Problems (hereinafter referred to as the
Committee) composed of the Secretaries of State, War, and the Treasury.
The
functions and duties of the Committee shall be:
(a) To assist the President in the early consideration of the recommenda
tions of the Anglo-American Committee of Inquiry (hereinafter referred to as.
the Anglo-American Committee) and of the views which may be submitted as a
result of the consultations thereon, and in the determination of the steps to
be taken by this Government in regard to Palestine and related problems.
(b) To propose the specific measures considered necessary or appropriate
effectively to implement the decisions made by the President with regard to
Palestine and related problems.
(c) So far as may be permitted by law, to implement and coordinate,
either directly or through the appropriate departments and agencies of the
United States Government, such policies or programs in respect of Palestine
and related problems as may be approved and authorized by the President.
(d) To perform such other tasks in connection with the functions and
duties descrj-ked-i h .subparagraphs (a), (b), and (c) above as the President
may from time to time direct.
2, Each member of the Committee shall designate a fully deputized alter
nate to act for and in his behalf.
The alternates thus selected shall function
as the executive agency of the Committee and shall be known as the Board of
Alternates, whose Chairman shall be the alternate for the Secretary of State.
The Committee is hereby empov^ered:
(a) To fix its rules of conduct and procedures and the pattern of its in
ternal organization.
(b) To employ a Secretariat to be headed by a Secretary-rGeneral with
such deputies and assistants and such clerical and administrative personnel
as may be necessary.
(c) To utilize to the maximum extent possible by way of loan or other
wise such personnel, facilities,* and services of the State, War, and Treasury
Departments as may be necessary or useful to the Committee in the accomplish-^ment of its functions and duties.
(d) Subject to subparagraph (c) hereof and within the limits of funds
which may be made available to it, to employ necessary technical personnel,
consultants, or advisers without regard to the civil service laws and regula
tions, and to make provision for such supplies, facilities, apd services as
may be necessary fully to discharge the Committee^s responsibilities.
(e) Whenever necessary, to call upon the heads of other departments
and agencies of the Government to supply experts or technical advisers to the
extent available to assist the Committee or its staff in connection with its
objectives.
3.
In the formulation of its policy recommendations as provided in
paragraph 1 hereof and in the implementation of any policies and programs ap
proved by the President, the Committee shall be empowered:
(a) To negotiate and consult, directly or through its representatives,
with accredited representatives and agencies of other governments, with
public or private international bodies, with States and municipalities and
private and quasi-public organizations in the United States or abroad,
(b) Upon the written request of the Chairman, or his alternate, to
procure from all departments and agencies of the Government such records and
documents in their possession as may be necessary, relevant, or useful to
the Committee in the accomplishment of its objectives hereunder,
4* In carrying out its functions and duties, and within the limits of
available funds, the members of the Committee and its personnel are authorized
to engage in the necessary domestic and foreign travel, When permitted by
law and otherwise practicable, the Secretary of War and the Secretary of the
Navy shall provide appropriate travel assistance, including the furnishing
of available Govemment-owned transportation and other facilities.
HARRY S. TRIM AN
THE WHITE HOUSE,
June 11, 1946
TSEASBBT BEPARTiERT
Washington
Press Servios
m
æmsg, m m
mmspapirs,
Tuesday,, July 9* 19h6»
s
- 1' 7'
The Secretary of the Treasury announced last evening that the tenders for
#1,300,000,000, or thereabouts, of 91-dsy Treasury bills to be dated July 11 and to nature
October 10, 191*6, which were offered on July
$,
19b6, were opened at the Federal Reserve
Banks on July 8.
The details of this issue are as follows:
Total applied for *» #1,891,988,000
Total accepted
- 1*335*136,00<H
Average price
(includes #37,027,000 entered on a fixed-price
basis at 99.90$ and accepted in full)
- 99*90$/ Equivalent rate of discount approx. 0*37$# per annua
Bangs of accepted competitive bids:
High
low
• 99*907 Equivalent rate of discount approx. 0*3685 per annua
99*90$
«
«
»
»
«
0.3765 •
*
percent of the amount bid for at the low price was accepted)
Federal Reserve
district
-j
Total
Boston
lew York
#
ktSUri tor
ph-ift
Cleveland
Ri
12,270,000
1,1*35,31*9,000
38,31*8,000
9.675.000
7 .896.000
6 ,760,000
¡¡I
Atlanta
‘s
Chicago ®||§¡f|
St* louis ff?
m
m
11
Minneapolis
Kansas City
Balias
San Francisco
Accepted
#
8,770,000
986,121*, poo
33,773,000
9*675*000
7,11*1» ,000
6.760.000
170,575,000
7.195.000
1,1*60,000
1,1*60,000
19,005,000
3,630,000
17.955.000
3.630.000
87.275,000
62,075,000
#1,891,988,000
#1,335*136,000
~
,
TOTAL
260,175,000
9,61*5,000
total
TREASURY DEPARTMENT
Washington
POR RELEASE, MORNING NEWSPAPERS
Tuesday, July 9, 1946
_______
Press' Son vie 6
No. S-12
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 July 11 and to mature October 10,1946,
which were offered on July 5, 1946, were opened at the Federal
Reserve Banks on July;8.
The details of this issue are as follows:
Total applied for - #1,891,988,000
Total accepted
- 1,315,136,000(includes 137,027,000 entered
on a fixed-price basis at
99.905 and accepted in full)
Average price - 99.905 / Equivalent rate of discount approx.
0.375$ per annum
Range of accepted competitive bids:
High - 99.907 Eauiv.
Low
- 99,905
”
rate of discount approx. 0,368$ per annum
"
M
"
"
0.376$ ’ "
”
(65 percent of the amount bid for at the low price was accepted)
Federal Reserve
District____
Total
Applied For
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas'
San Francisco
I
TOTAL
12,270,000
1,435,349,000
38.848.000
9.675.000
7.896.000
6.760.000
260,175,000
9.645.000
1.460.000
19.005.000
3.630.000
87.275.000
#1,891,988,000
oOo
Total
Accepted
#
8,770,000
9 86,124,000
33.773.000
9, 675,000
7.144.000
6.760.000
170,575,000
7.195.000
1.460.000
17.955.000
3.630.000
62.075.000
1 1,315,136,000
Il x m i t a s x o h
lo , i9ft6
TREASURY DEPARTMENT
TO.
?& **
1 as amended, provides that the face amount
let, and the face amount of obligations
¡United States (except such guaranteed
¡the Treasury), ’•shall not exceed in the
Jne time*
For purposes of this section
¡¡issued on a discount basis which is
the holder shall be considered as its
m
[of obligations outstanding and the face
litationï
$275,000,000, (
|y one time
IAct, as amended
y U ^ Jl
1.939.000
d U & *.
1.825.000
1, 292,100 $ 76»S15.056,100
.
x£ <
I
1 *903,950
1.697,522
1,851.000
/ & C . j j ^
^■ K
1,500,000
1,3^,000
168 ,73^,^52.538
22,331,Sftft,000
267,931.352. W
370,6^5,825
u A jti^
1,976,331
ÿ.995.6^9
• • • » . . . I
1,525.336
|,lftb,6ft8
*•••••••
153,971.980
25S.ft55.970.W3
ft66.671.98ft
9,712,875
ft76,38ft,S59
|er above authority
268,932,31
6,067,$
MR. HEFFÉLFINGER
| m |
Public Debt - June 30. 19^6
m H H B H H H M H B t a t e s Treasury, July 1, 19^6)
Outstanding June 30, 19^6
.
r
Total gross public d e b t .............................. ............
2
Guaranteed obligations not owned by the Treasury .................... .... ” g lItT^
Total gross public debt and guaranteed obligations ............. .
269,898,484
Deduct — other outstanding public debt obligations
not subject to debt limitation ....
••*••••......... *,..»*•*____ 966,128
S - /3
a
0
yt/7
^
PJIMulroe/4lc
XAX
268,932,355.3
& & N I
*m
STATUTORY DEBT LIMITATION
AS OF JUNE 30, lffig
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 $275*000,000,000 outstanding at any one time*
For purposes of this section
the current redemption value of any obligation issued on a discount basis which is
redeemable prior to maturity at the option of the holder shall be considered as its
face amount.H
I
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 June 30 » 19^6
Obligations issued under Second Liberty Bond Act, as amended
In ter est-b earing
Treasury bills.................. $ 17*032,939*000
Certificates of indebtedness ...
3^*£03*225*000
Treasury notes ..........
2^*972»292,100 $ 76*215*056,100
Bonds
Treasury
119*322*903*950
Savings (current redemp. value) 1+9*03^*697*522
Depositary ....................
1+26,251,000
$ 275 *000 ,000 ,(
16S, 72 ^,^-52,5 32
_
Special Funds
Certificates of indebtedness..
10,79^*500,000
Treasury notes .........
11*537*3^*000
22,331,2^*000
Total interest-bearing .........
267,931.352*633
Matured, interest-ceased ..........................
370 ,6)45,225
Bearing no interest
War savings stamps ...........
95,976*331
153,971,920
Excess profits tax refund bonds.
57*995,6^9
2&2 *l55,~970^+3
Total •».......... ••••............... ............
Guaranteed obligations (not held by Treasury)
Interest-bearing
^2,525*336
Debentures: F.H.A. .............
Demand obligations: C.C.C......
^2^, 11+6,642
Matured, interest-ceased ......................
1+66 ,671 ,92 ^
9 ,712*275
1+76 .32^,259
Grand total outstanding .................. ....... ................. .
Balance face amount of obligations issuable under above authority .......
S
262,932,355,3^
6,067,644~6g
Reconcilement with Statement of the Public Debt - June 30* I9 I+6
(Daily Statement of the United States Treasury, July 1, I9 I+6 )
Outstanding June 3 0 * 19^6
Total gross public d e b t ........... .......
269*^22,099,17!
Guaranteed obligat ions not owned by the Treasury .............
1+76,
Total gross public debt and guaranteed obligations .................. .
269,898,484,1);
Deduct - other outstanding public debt obligations
not subject to debt limitation
966,122
~ /3
a.
P
^
M /?
x M
268 , 932 , 355*23
STATUTORY DEBT LBiI.TA.TEON AS OF JUNE 30, 1946
July 9 , 194-6
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 $275,000,000,000 outstanding at any one time. For
purposes of this section the current redemption value of any obligation issued on a
discount basis which is redeemable prior to maturity at the option of the holder
shall be considered as its face amount.»
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
$275,000,000,000
Outstanding June 30, 1946
Obligations issued under Second Liberty Bond Act, as amended
Interest-bearing
Treasury bills....... .
$ 17,038,939,000
Certificates of indebtedness
34,803,825,000
Treasury notes ...........
24*972.292.100 $ 76,815,056,100
Bonds
Treasury............... . 119,322,903,9 50
Savings (current reaemp. \eiue) 49,034,697,588
Depositary ................
426 >851.000
Special Funds
Certificates of indebtedness 10,794,500,000
Treasury n o t e s .........
11.537.344.000
Total interest-bearing.... .............
Matured, interest-ceased.........
Bearing no interest
War savings stamps ...........
95,976,331
Excess profits tax refund bends
57.995.649
Total ...................................
Guaranteed obligations (not held by Treasury)
Interest-bearing
Debentures: F.H.A. ...........
42,525,336
Demand obligations: C.C.C. ....
424.146,6 4 8
Matured, interest—ceased ..........
168,784,452,538
22.331.844.000
267,931,352,638
370,645,825
153.971,980
268.455.970,443
466,671,984
9.712,875
476,384,859
Grand total outstanding..... ..................................... 268,93.2,35.5a.3..Q2
Balance face amount of obligations issuable under above authority ... 6 ,067,644,698
Reconcilement with Statement of the Public Debt - June 30, 1946
(Daily Statement of the United States Treasury, July 1, 1946)
Outstanding June 30, 1946
Total gross public debt ......................................
269,422,099,173
Guaranteed obligations not owned by the Treasury.... .
..... 476,384,859
Total gross public debt and guaranteed obligations .........
269 ,898 ,484 ,032
Deduct - other outstanding public debt obligations
not subject to debt limitation ..................... .
.....966,128,739
268,932,355,302
S-13
5
- 1
TOR IMMEDIATE ffiCT.TMStt
Jaly-fr. 19H6
The Bureau of Customs announced today preliminary figures
showing the quantities of eoffee entered for consumption during
the period commencing October 1, 19ty5» as follows:
Quantity in Pounds
Am o t April 30, 19H6
Country of Production
Signatory Countries:
8 5 3 .l6 U .0 8 0
Brazil
Colombia
Costa Rica
Cuba
Dominican Republic
Ecuador
El Salvador
Guatemala
Haiti
Honduras
Mexico
Nicaragua
Peru
Venezuela
3 9 8 .6 0 7 .5 6 7
1 7 ,7 0 6 ,9 7 0
290
1 7 .H 2 8 .3 7 9
9 ,0 9 2 ,8 2 7
2 9 .1 5 5 .H 3 1
H9.H35.H53
1 5 ,2 7 0 ,1 8 7
5 .0 7 6 ,8 2 1
*n ,g fo 6 ,3 2 ^
1 1 ,9 5 8 ,1 2 8
2 ,3 7 9 .9 0 7
3 2 ,8 3 7 ,1 7 9
2 6 .9 9 2 .H 0 9
Signatory Countries:
TOTAL
1 ,5 1 0 ,9 5 1 .9 5 2
The above data reflects the amount of eoffee for which
entries for consumption have been reported as of Jprll 3°,
and includes the returned weights on a number of entries,
which returned weights have not previously been considered*
TREASURY DEPARTMENT
Washington
E O R I i X E D I A T E RELEASE,
Thursday, J u l y 11, 1946,
P r e s s S er vie e
N o * S - 14
The B u r e a u of C u s t o m s a n n o u n c e d t o d a y p r e l i m i n a r y fi g u r e s
s h o w i n g the q u a n t i t i e s of c o f f e e e n t e r e d f o r c o n s u m p t i o n during
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 f o l lows:
Q u a n t i t y in P o u n d s
As of A p r i l 3 0 , 1946
C o u n t r y of P r o d u c t i o n
S i g n a t o r y Countries:
Brazil
Colombia
Costa Rica
Cuba
Dominican Republic
Ecuador
El S a l v a d o r
Guatemala
Haiti
Honduras
Mexico
Nicaragua
Peru
Venezuela
853,164,080
398,607,567
17,706,970
290
17,428,379
9,092,827
29,155,431
49,435,453
15,270,187
5, 076,821
41,846,324
11,958,128
2,379,907
32,837,179
Non-Signatory Countries:
26,992,409
TOTAL
1,510,951,952
T h e a b o v e data r e f l e c t s the a m o u n t of c o f f e e f o r w h i c h
entries f o r c o n s u m p t i o n hav e been r e p o r t e d as of A p r i l 3 0 ,
a n d includes the r e t u r n e d w e i g h t s o n a n u m b e r of entries,
w h i c h r e t u r n e d w e i g h t s have n o t p r e v i o u s l y been c o n s i d e r e d #
0 O0
5
W
w
FOR IMMEDIATE RELEASE,
■Tilly \9, 1 9 k 6 ____ ___
l l » l l ^piijlll M
_~___
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 Apfil 29, 1943, for the 12 months commencing May 29, 1946*, as follows:
Wheat
Country
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
Netherlands
Argentina
2,000
100
1t aly
Cuba
1,000
Prance
—
Greece
100
Mexi co
Panama
U ruguay
Poland and Danzig
Sweden
Yugoslavia
Norway
Canary Islands
1,000
Rumania
100
Guat emala
100
Brazil
Union of Soviet
Socialist Republics
1Q0
100
Belgium
800,000
:
Imports
:May 29, 1946, to
:June 29r I9k6
(3ushela)
} 20
—
■—
—
—
'—
—
—
— ;
—
—
—
'~
;—
Wheat flour, semolina,
crushed or cracked
wheat, and similar
wheat products
Imports
Established ï
ï May 29, 1946,
Quota
t to .Tune 29, 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
■
♦»oOo**»
“
w
m
~
■***•
■m
m
m
m
5jit
"T*8
*■*
“
j-- -.
-
-
"
20
190,023
•n-rmr---——,
4,000,000
190,023
TREASURY DEPARTMENT
Washington
FOR IMMEDIATE RELEASE
Thursday/ July 11» 194.6«
Press Service
No, S-15
The Bureau of Customs announced today preliminary figures shewing the
quantities of wheat and wheat flour entered,
withdrawn from warehouse,,
for consumption under the import quotas established in the President’s
proclamation of May 28, 194-1, as modified by the President's proclamations
of April 13, 1942, and April 29, 1943, for the 12 months commencing May 29,
1946, as follows:
or
Country of
Origin
Wheat flour, semolina,
crushed or cracked
wheat, and similar
wheat products
Wheat
Established
Quota
(Bushels)
*
Imoorts
♦May 29« 1946 - to
•June 29. 19Ao
(Bushels)
Canada
795,000
■■
China
Hungary
T*
Hong Kong
Japan
United Kingdom
100
-V
Australia
100
Germany
Syria
100
New Zealand
■Chile
100
Netherlands
2,000
Argentina
Italy
100
Cuba
1,000
France
Greece
100
Mexico
Panama
Uruguay
**■ Poland and Danzig
Sweden
TYugoslavia
N orway
Canary Islands
1,000
Rumania
100
Guatemala
100
Brazil
Union of Soviet
Socialist Republics
100
100
Belgium
20
.-
(Pounds)
3,815*000
190,023
-*
-r
**
-
-
20
4,000,000
- -f
--
—
—
**
—
-'
-
— 0O 0—
(Pounds)
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
..... ■ .
-
-,
800,000
•
Imports
Established
;May 29, 1946,
|
Quota
:to June,291.1946
-
*
—■.
-
-
. -•
190,023
2
COTTON CARD STRIPS made'from co ttons having a. staple of less than 1—3/16 inches
in,length, COMBER PASTE, LAP PASTE, SLIVER PASTE, ADD ROVING PASTE, WHETHER
OR POT MADTJPACTITRED OR OTHERWISE ADVANCED IP VALUE. Annual quotas commencing
September 20, by Countrie.s of Origin;
;;,'f
Total quota, provided, however, that not more than 33-1/3 percent of the quotas
shall he filled hy 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
countrles': United- Kingdom, Prance, Netherlands, .Switzerland, Belgium,
Germany, and Italy:
—
(in Popnds)
Country of Origin
United Kingdom......
Canada..............
Prance..............
British India...,,..
Netherlands.
Switzerland.... .
Belgium.............
Japan,.............
nVinrin..... .........
Egypt............. .
Germany......
Italy.....
TOTALS
l/
ESTABLISHED' : IMPORTS •
Established * TOTAL IMPORTS ' :
Sept. 20, 194$, ; 33r4/3^ of : Sept. 20, 194$
t o t a l Qu o t a ;
to June 29, 19^6 ; To:tal Quota ; tojune 29 , 1 /
~
19U6
1,441,152
4,323,457
239,690
75,807 .
... - _
—
227,42Q
• ....,■■h ■
V,; • 69,627
69 ,62?
• -22,747... .....
68,240
•• •14,796.. ;
■44,388
-•■12,853.. . ...... 38,559
■• •• ••
341,535
.... y
. .. ,.
17,322
:-■
8,135
•- •
.; y;
6,544
4 • •-25,-443 .. .
:• 76,329
.... 7,088 . .. •-. ... • ;
21,263
ffS
■:■■■
5,482,509
69,627
Included in total imports, column 2.
-oOo-..
’1,599,886 ‘
-
IMMEDIATE RELEASE
9h6_________
FOR
July19? 1
S
-
The Bureau of Customs announced today that preliminary reports from the
collector's of customs show imports of cotton ancL'cotton waste chargeable to the
import auotas established hy the. President.1s.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 June 29* 19k6
COTTON -HAVING- A STAPLE OF LESS TRAP 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 ■BLANKET ING, AND OTHER THAN LIITTERS). Annual quotas
commencing September 20, by Countries of Origin:
:
(In Pounds)
Gountry o f '
Origin
Egypt and the AngloEgyptian Sudan.’
..,*...
Peru.............. .
British India. ............
China,........
Mexico...... .......
BraZ il.......... .......
Union of Soviet
Socialist Republics,,.
Argentina,..... ........
Haiti.....
Ecuador..........
Honduras..............
Paraguay.................
Colombia................
Iraq..... .
British East Africa....,
Netherlands East Indies.
Barbados,...............
Other British T,fest
Indies 1 ........
Nigeria.......... .
Other British Uest
Africa 2 / ............
Other French Africa.3/..
Algeria and Tunisia....
j
Staple length less
than 1- 1 /8 ,r'
;
5Imports Sept.
Established:20, 194$» to
Quota
June 29* 19k6
783,-816
247,953
2,003,483
1,370,791
8,883,259
618,723
475,124
5,203
237
9,*333
752
87Ï
124
195
2,240
71,388
21,321
5,377
1/
3/
237,269
2,003 ,¡4.83
• 29>175,6k6
* 8 >090,£37
-
8,883,259
618,723
100
..
316
,
-
16,004
689:
14,516,882
2/
Staple length 1-1/8" or more
: .'but less than 1-11/16”____
Established : Imports Sept.
,Quota. Id ? EG.* 194£, to
45,656,420 :June 29« 19k6.
1
11,7^2,73k
45,656,420
Other than Barbados, Bermuda, Jamaica, Trinidad, and Tobago,
Other than Gold Coast and Nigeria.
Other than Algeria, Tunisia, and Madagascar.
37,266,600
IRPjA S UKY BEPA inTMe N T
Washington
FOE IMMEDIATE RELEASE
Thursday, July 11« 1946»
Press Service
No » S-16
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* 194-0* March 31* 1942* and June v
29* 194^, during the period September 20, 1945* to June 29* 1940.
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 LINTEES). Annual quotas
commencing September 20, by Countries of Origin:
(In Pounds)
s
Staple length l e s s : Staple length 1-1/8" or more
:______than 1-1/8”
;
but less than 1-11/16” __
Country of
•
« imports Sept*Established : Imports Sept»
Origin
;Established 20* 1945* to :
Quota
s .20, 1945* to
______ :
Quota s June 29s 1946: 453656,420 : June 29* 1946*
Dgypl 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
237
Haiti.........
Ecuador........... .
9*333
Honduras...............
752
Paraguay.... .
871
Colombia.... .......
124
Iraq...................
195
British East Africa....»
2,240
Netherlands East Indies.
71*388
Barbados............... *
Other British West
Indies l/.............
21,321
Nigeria...... ..........
5*377
Other British West
Africa 2/...... ......*
16,004
Other French Africa 2/..
689
Algeria and Tunisia....•
14*516*882
\J
2/
2/
237*269
2,003*483
29 *175* 646
8,090,537
**
8,883*259
618,723
100
— ■
—
-
316
—
—
—
—
—
~
—
-*
—
—
—
—
**
-
1
-
11,742*734
45*656,420
Other than Barbados, Bermuda, Jamaica, Trinidad, and Tobago
Other than Gold Coast and Nigeria*
Other than Algeria, Tunisia, and Madagascar.
37*266,600
CDTIDN CARD STRIPS made from cottons having a staple of less than 1-3/16 inches
in lengthy COMBER WASTE* LAP WASTE* SLIVER .TASTE* AND ROVING WASTE* WHETHER
OR NOT MANUFACTURED OR OTHERWISE ADVANCED IN VALUE. Annual quotas commencing
September 20* by Countries of Origins
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/lo inches or more in staple length in the case of the following
countries! United Kingdom* France* Netherlands* Switzerland* Belgium*
Germany* and Italy;
(In Pounds)
Country of Origin
«
'Established
;TOTAL QUOTA
United Kingdom. •..
Canada.
France........ ...
British India..*.. ..
Netherlands....... ••
Switzerland....... •.
Belgium....... .. •..
Japan.............
China.............
Egypt.............
Cuba.............. ..
Germany..... .... •
Italy.... ........
TOTALS
1/
• TOTAL IMPORTS : ESTABLISHES
Sept. 20* 1945*: 33-1/3$ Of
;
to June 29 919 46 ; Total Quota
4*323,457
239,630
227*420
69,627
68*240
44*303
33,559
341*535
8*135
6,5 44
5,482,509
Included in total imports* column 2
—
69,627
- .
—
69 *627
1*441*152
75*807
22*747
14*796
12*8-53
—
—
-
25,443
7*088
1*599*886
;
IMPORTS
; Sept. 20* 1945*-,
s to June 293 19 46^
—
—
—
—
FOR IMMEDIATE RELEASE
July 9. 1946_________
£ - 7 7
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 June 29, 194-6, inclusive,
as follows:
Commodity
:
Unit
:
of
:
Established Quota
Period and Country: Quantity : Quantity !
Imports as
of June 29
1946
Whole milk, fresh
or sour
Calendar Year
'3,000,000
Gallon
5,107
Cream, fresh or sour
Calendar Year
1,500,000
Gallon
1,172
Fish, fresh or frozen
filleted, etc., cod,
haddock, hake, pollock,
cusk, and rosefish
Calendar Year
20,380,724
Pound
Quota filled
. 90,000,000
60,000,000
Pound
Pound
Quota filled
279,492
White or Irish potatoes:
certified seed
other
1
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
Calendar Year
1 ,396,423
Square
676,596
Molasses and sugar sirups
containing soluble non
sugar solids equal to more
than 6% of total soluble
Calendar Year
solids
1,500,000
Gallon
218,960
67,012
Number
12,984
Red cedar shingles
Silver or black foxes,
furs, and articles: Foxes
valued under $250 each
and whole furs and skins
Tails
May-Nov. 1946
All countries
12 months from
Dec. 1, 1945
Pound
(unstemmed Quota
equivalent
filled
)
5,000
Piece
-
500
round
490
ft
550
Pound
-
Articles, other than
tt
piece plates
Quota increased per T. D. 51448
500
Unit
81
Paws, heads or other
separated parts
Piece plates
1/
TREASURY DEPARTMENT
Hashington
FOR IMMEDIATE
RELEASE
Thursday^ July 11, 1946.
Press Sa° vice
No. S-17
for
nf Cust0^ announced today preliminary figures showing the imports
for consumption of commodities within quota limitations provided for under trade
the beginning of the °‘uota Periods to June 29, 1946 , inclusive,
a f f ™loTO-
»
Commodity
Cream, fresh or sour
Fish, fresh or frozen
filleted, etc., cod,
haddock, hake, pollock,
cusk, and rosefish
3,000,000
Gallon
5,107
Calendar Year
1 ,500,000
Gallon
1,172
Calendar Year
20,380,724
Pound
Quota filled
Pound
Pound
Quota filled
279,492
22 ,000,000
Pound
(unstemmed Quota
equivalent)
filled
12 months from
Sept. 15 , 1945
Cuban filler tobacco un
stemmed or stemmed (other
than cigarette leaf tobacco)
and scrap tobacco
Calendar Year
fied cedar shingles
Calendar Year
iolasses and sugar sirups
containing soluble non
sugar solids equal to more
than
of total soluble
solids
Calendar Year
i/
0 0
0 0
0 0
White or Irish potatoes:
certified seed
other'
Calendar Year
o\
O O
O O
O O
*\
O O
On
Whole milk, fresh
or sour
Unit
: Imports as
i
of
: of June 29 ,
: Quantity
:
Established Quota
:Period and Countrv: Quantity
1,396,423
Square
676,596
",\T.v
6%
Silver or black foxes,
furs, and articles: Foxes
valued under
each
and whole furs and skins
%2.50
fails
1 ,500,000
Gallon
218,960
May-No v. 1946
All countries
67,012
Number
12,984
12 months from
Dec. 1 , 1945
5,000
Piece
500
Pound
550
Pound
500
Unit
3aws, heads or other
separated parts
ti
Abece plates
it
irticles, other than
piece plates
11
f/
——------- ------------—
Wuota increased per T. D. 5H48.
7T
490
81
- 4 -
CHARLES R. JCHNSTON, Washington attorney. He was born in New York in 1910
and was educated at the College of the City of New York and also New York Law
School. From 1935 to 1942, he practiced law in New York. He has been on the
legal staff of the Treasury Department and the Bureau of Internal Revenue since 194]
serving particularly as legal adviser to the Salary Stabilization Unit from 1943
to date.
HENRY J. DONNELLY, JR., Washington accountant. Bora in Philadelphia in 1908,
he received a degree in economics from the University of Pennsylvania, and is a
certified public accountant.^ He was principal of the McCann Business School in
Mahanoy City, Pa. and {j5raotTced> accounting in Philadelphia for several years. He
entered the Internal Revenue Service in 1935 as a revenue agent, serving in that
capacity in Philadelphia and Washington, until he entered the army. During the war,
he was a major and chief of the Price Adjustment Branch, Legal Division, Office of
the Chief of Ordnance^ Prior to entering the army, he was a Bureau instructor
and specialist in the excess profits tax, including Section 722.
.CLIFFORD W. STOWE, Detroit revenue agent. Born in Attleboro, Mass., in 1900, |
he attended Boston University and the Bentley School of Accounting. He has been
an internal revenue agent at Detroit since 1928, serving recently as assistant
agent in charge of the Detroit Division. He was also a chief conferee in the
Detroit office and participated in much of the previous research on Section 722.
- 0
School« In addition to private practice, he has been a lecturer and instructor
in federal taxation at Columbia University, Rutgers University, New York University;
and Rhode Island State college. He was chaizman of the recent pension trust
conference of the Controllers Institute, and is the author of numerous articles
and booklets on tax matters«
DONAH) MYRIGK, Santa Barbara, Cal«, economist« He was born at Springfield,
Mass., in 1893. He is a graduate of Princeton University, and also took post
graduate studies in business and economics at the University of Wisconsin and
Harvard University. In 1917-18 he was manager of the Santa Barbara Morning Pres3. j
After serving in the army in the First World War, he became trust officer, vice
president and director of the First National Bank of Santa Barbara, serving in
the bank for 13 years. From 1932 to 1943, he was an investment counselor in Santa J
Barbara. He came to Washington from 1943 to 1946, as a renegotiation consultant
and head of the Research Unit of the Price Adjustment^Section, Office of the Chief j
of Ordnance. For this'work he received the War Department¿js^ffi^Lal commendation j
for Exceptional Civilian Service. Since February, he‘'W^a^Snber of the Price
Adjustment Board of the Western District Air Technical Service Command, AAF. He is
the author of many articles on business and economic subjects.
HAROIB ARTHUR -EPPSTON, Newark, N. J«, accountant. He was born in Brooklyn,
N. Y«, in 1897. He was aiv^Sonor)1graduate of New York University, where he also tool
various graduate courses. liS'^received a law degree from Fordham University, and is
both a member of the bar and also a certified public accountant« After a period as
accountant for the Newark Board of Education, he has since engaged in private
practice of both law and accounting«
R. CLIFFORD HALL, Washington
onomist. Born in Chicago in 1885, he holds
degrees from Northwestern University and Yale University. He entered government
service in 1917 as a forestry engineer. He was a captain of army engineers in the
first World War, and subsequently became a valuation engineer in the Bureau of
i
Internal Revenue for several years. He returned to the forest service from 1926 to
1943, when he came back to Internal Revenue to organize the Business and Industrial
Research Division, which he has headed since. This Division has been compiling
and interpreting the basic economic data related to Section 722 claims.
WILLIAM BERNARD PAUL, Denver revenue agent. He was born
in 1898, and attended Boston University« He received a law degreeYiroEr^stminster
Law School (Denver) and is both an attorney and a certified public accountant« He
for brief special tours of duty in Washington, which included important vrork
related to Section 722 claims. He was formerly professor of accounting at Regis
College (Denver) and instructor at the University of Denver, and is a former
president of the Colorado Society of Certified Public Accountants«
MORTON P. FISHER, Baltimore attorney* He was b o m in Baltimore in 1897, and
is a graduate of Johns Hopkins University and the University of Maryland* He was
a special assistant to the Attorney General of the United States from 1928 to 1930.
Prom 1941 to 1943 he was chairman of the Income Tax Committee of the Tax Section of
the American Bar Association* During the recent war he was decorated for his
achievements as Chief of the Public Finance Branch of the Office of Military Govern
ment in Germany and as United States member of the four-power committee which
revised German tax laws to be administered during the occupation*
CHARLES P. SMITH, former judge of .the Tax Court. Mr. Smith retired last month
from the Tax Court after serving as one of its judges since its creation in 1924*
He is 67 and a native of Windham, N. H* He is a graduate of Brown University and
George Washington University. He served in the Census Bureau from 1905 to 1914,
and in the Bureau of Internal Revenue from 1914 until 1924»
HENRY J. MERRY* New York attorney. He was born in Pontiac, Michigan, in 1908,
and received a law degree from the University of Michigan. He is also a certified
public accountant and practiced both law and accounting in Chicago from 1936 to 1939,
From 1941 to 1944 he served in the Chief Counsel’s Office, Bureau of Internal Revenuj
in Washington, New York, and Buffalo. Since 1944 he has been engaged in private
practice in New York.
WILLIAM L. KUMLER, Los .Angeles attorney. He was born in Bellefontaine, Ohio
in 1911. He received arts and law degrees from Ohio State University m d was
admitted to the bar in both Ohio and California. He is also a qualified
accountant. He.has been engaged in private practice in Los Angeles since 1938.
ERIC LOUIS KOHLER, Chicago accountant. He was born in Owosso, Michigan, in
1892, and is a graduate of the University of Michigan and Northwestern University.
He was licensed as a certified public accountant in Illinois in 1916 and practiced
in Chicago until 1938. From 1938 to 1941, he was head of the Finance Department
of the Tennessee Valley authority. From 1941 to 1942, he was an administrative
advisor to the War Production Board, and subsequently was a consultant to the
Commodity Credit Corporation.
FREDERIC: D. UTLEY, Chicago accountant. Born in Illinois in 1886, he is a
graduate of Harvard University and a certified publps-«ccountant. After a long
career of private practice in Sterling and Chicago,\Illp, and oirfto in Detroit, he
served in 1940-1941 as field auditor of the Kankakee ordnance Works for the army
in Joliet, 111. In 1941-1942, he was chief project auditor of the army’s Ohio
River Ordnance Works at Henderson, Ky., and in 1942-1943 he was a renegotiation
consultant of the army’s Chemical Warfare Service in Washington. Since 1943, he
has been renegotiation consultant of the army Quartermaster service in Chicago.
TREASURY DEPARTMENT
Bureau of Internal Revenue
Washington 25, D. C.
/<gf
Joseph D. Nunan, Jr*, Commissioner of Internal Revenue, and Charles D. Hamel
Chairman of the Excess Profits Tax Council, announced today the full membership
of the 15-man Council which has been set up within the Bureau of Internal Revalue
to administer refund claims of corporations filed under Section 722 of the Internal
Revenue Code*
In connection with the announcement, Commissioner Nunan stated:
"Now that the personnel of the Council has been completed, its work
should proceed rapidly and effectively in order best to serve the true
interests of both the government and the taxpayers*
"I am confident that this result can be expected from this group
of men, all distinguished in their fields of law, accounting and
economics, many of whom accepted this opportunity of public service
xat financial sacrifice to themselves* Their opportunity for service may
be measured, not alone by the demands of fair play, but also by the
#8,000,000,000 volume of the claims being assigned to their adjudication*
"I solicit on behalf of these men the cooperation of all Section 722
claimants to the end that these claims may be disposed of with the
greatest speed consistent with the equities and magnitude of the task."
*
Chairman Hamel added:
nI and all the other members of the Council appreciate the
Commissioner’s confidence, and we pledge our best efforts to the task
he has given us* We anticipate active operations almost immediately
and, with this goal in mind, we have called a meeting oh July 16 to draft
our procedures and clear the decks for consideration of the vital
issues underlying the Section 722 claims«"
Although all basic interpretations of Section 722 will be subject to the
Council’s review, the initial investigation of these claims continues to be the
function of the established fi0id offices of the Bureau and this work is progressing
without interruption in order to avoid delays in the eventual application of the *
principles determined by the Council*
In accordance with a plan which was endorsed by the Joint Congressional
Committee on Internal Revenue Taxation, Commissioner Nunan selected ten of the
Council members from outside the ranks of the Bureau of Internal Revenue. The
leading professional societies and many others assisted the Commissioner in com
piling a distinguished list of qualified men, and Mr* Nunan expressed his regret
that more opportunities for utilizing the services of the other men were not
available* The remaining five memberships on the Council were allotted to members
of the Bureau staff who were selected for wide experience, not only in Section 722
matters, but also in other phases of taxation*
The membership of the Council is as follows:
CHARLES D. HAMEL, Washington attorney, is chairman of the Council* Mr. Hamel
was born in Minneapolis, Minn*, in 1881* He attended the University of North
Dakota and National University (Washington), and entered government service in 1909#
After serving in the Interior, Justice, and Treasury departments, he was appointed s
the first chairman of the Board of Tax Appeals (now the Tax Court of the United
States) when it was created in 1924. He has been in private law practice in
Washington since 1925.
TREASURY DEPARTMENT
B u r e a u of Internal R e v e n u e
Washington
FOR RELEASE, M O R N I N G N E W S P A P E R S
Thursday, July 11, 1946
Press S e r vice
No. S-18
J o s e p h D. Nunan, Jr., C o m m i s s i o n e r of Internal Revenue,
and Ch a r l e s D. Hamel, C h a i r m a n of the E x c e s s Pr o f i t s T a x Council
a n n o u n c e d t o day the full m e m b e r s h i p of the 1 5 - m a n C o u ncil w h i c h
has b e e n set up w i t h i n the B u r e a u of In t e r n a l R e v e n u e to a d m i n
ister refund c l a i m s of c o r p o r a t i o n s filed u n d e r S e c t i o n 722 of
the In t e r n a l R e venue Code.
In c o n n e c t i o n w i t h the a n n o u n c e m e n t ,
stated:
Commissioner Nunan
”N o w t h a t the p e r s o n n e l of the C o u n c i l has b e e n
completed, its w o r k should p r o c e e d r a p i d l y and e f f e c
t i v e l y in. o r d e r b est to serve the true interests of
b o t h the Gove r n m e n t and the t a x p a y e r s .
!fI ^am c o n f ident that this result can be e x p ected
from^this g r o u p of men, all d i s t i n g u i s h e d in their
fields of law, a c c o u n t i n g and economics, m a n y o f w h o m
a c c e p t e d this o p p o r t u n i t y of p u b l i c service at f i n a n
cial sacrifice to t h e m s elves.
T h e i r o p p o r t u n i t y for
service m a y b e m e a s ured, not a l o n e b y the d e m a n d s of
fai r play, b u t also b y the | 8 , 0 0 0 , 0 0 0 , 0 0 0 volume of
the claims b e i n g a s s i g n e d to t h e i r adjud i c a t i o n .
,?I solicit on b e h a l f of these m e n the c o o p e r a t i o n
of all S e c t i o n 722 cl a i m a n t s to the end that these
claims m a y be d i s p o s e d of w i t h the g r e a t e s t speed c o n
sistent w i t h the e q u ities and m a g n i t u d e of the t a s k . ”
C h a i r m a n Hamel
added:
nI and all the o t h e r m e m b e r s of the Co u n c i l
a p p r e c i a t e the C o m m i s s i o n e r ’s confidence, and we
p l edge our best e f forts to the tas k he has g i v e n us.
We a n t i c i p a t e active o p e r ations a l m o s t i m m e d i a t e l y
and, w i t h this goa l in mind, we h ave c a l l e d a m e e t
ing on J uly 16 to d r aft our p r o c e d u r e s and clear the
decks for c o n s i d e r a t i o n of the vital issues u n d e r
l y ing the S e c t i o n 722 c l a i m s . ”
2
A l t h o u g h all b a sic i n t e r p r e t a t i o n s of S e c t i o n 722 will be
subject to the C o u n c i l ’s review, the initial i n v e s t i g a t i o n of
these claims c o n t i n u e s to be the f u n c t i o n of the e s t a b l i s h e d
field offices of the B u r e a u and this w o r k is p r o g r e s s i n g w i t h
out i n t e r r u p t i o n in o r d e r to a v o i d d e l a y s in the eventual a p
p l i c a t i o n of the p r i n c i p l e s d e t e r m i n e d b y the Council.
In a c c o r d a n c e w i t h a plan w h i c h was en d o r s e d b y the Joint
C o n g r e s s i o n a l C o m m i t t e e on I n t ernal Revenue Taxation, C o m m i s - “
sioner N u n a n se l e c t e d ten o f the C o u n c i l m e m b e r s f r o m outside
the ranks of the B u r e a u of Internal Revenue.
The l e a d i n g p r o
fessional soc i e t i e s and m a n y others a s s i s t e d the C o m m i s s i o n e r
in c o m p i l i n g a d i s t i n g u i s h e d list of q u a l i f i e d men, and Mr.
N u n a n e x p r e s s e d his r e g r e t that,more o p p o r t u n i t i e s for u t i l i z
ing the services of the o t h e r m e n w e r e not available.
The
r e m a i n i n g five m e m b e r s h i p s on the Co u n c i l w ere a l l o t t e d to
m e m b e r s o f the B u r e a u s t aff w h o wer e se l e c t e d for wide e x p e r i
ence, n ot only in Se c t i o n 722 matters, bu t als o in o t h e r
phases o f taxation.
The
m e m b e r s h i p of the C o u n c i l
is as follows:
C H A R L E S D. HAMEL, W a s h i n g t o n attorney, is c h a i r m a n of the
C o u ncil.
Mr. H a mel w a s b o r n in M i n n e a p o l i s , M innesota, in 1881.
He a t t e n d e d the U n i v e r s i t y o f N o r t h D a k o t a and N a t i o n a l U n i v e r
sity (Washington), and e n t e r e d G o v e r n m e n t service in 1909.
After se r v i n g in the Interior, Justice, and T r e a s u r y D e p a r t
ments, he wa s a p p o i n t e d the first c h a i r m a n of the B o a r d of Tax
A p p e a l s (now the Tax Court of the U n i t e d States) w h e n it was
created in 1924.
He has b e e n in p r i v a t e law p r a c t i c e in
W a s h i n g t o n since 1925.
M O R T O N P. FISHER, B a l t i m o r e attorney. He wa s b o r n in
Bal t i m o r e in 1897, and is a g r a d u a t e o f Johns H o p k i n s U n i v e r
sity and the U n i v e r s i t y of M a r yland.
He w a s a special a s s i s t
ant to the A t t o r n e y G e n eral of the U n i t e d States f r o m 1928 to
1930.
F r o m 1941 to 1 9 4 3 he was c h a i r m a n o f the I n c o m e T a x
Com m i t t e e o f t he T a x S e c t i o n o f the A m e r i c a n B a r A s s o c i a t i o n .
D u r i n g the recent w a r he was d e c o r a t e d for his a c h i e v e m e n t s as
C h i e f of the Public Finance B r a n c h of the Office of M i l i t a r y
G o v e r n m e n t in G e r m a n y and as U n i t e d S t a t e s m e m b e r of the fourp o wer c o m m i t t e e w h i c h r e v ised G e r m a n tax laws to be a d m i n i s
tered d u r i n g thè o c c u pation.
C H A R L E S P. SMITH, former judge o f the T a x Court.
Mr.
Smith r e t i r e d las t m o n t h f r o m the T ax C o u r t a f t e r s e r ving as
one of its judges since its c r e a t i o n in 1924.
He is 67 and a
n a tive o f Wi n d h a m , N. H.
He is a g r a d u a t e of B r o w n U n i v e r s i t y
and G e o r g e W a s h i n g t o n U n i v e r s i t y .
He served in the Census
Bureau f r o m 1905 to 1914, and in the B u r e a u of Internal Revenue
from 191 4 u n t i l 1924.
3
H E N R Y J. MERRY, N e w Y o r k attorney,
He was b o r n in
Pontiac, Michigan, in 1908, and r e c eived a law d e gree f r o m the
U n i v e r s i t y of Mic h i g a n ,
He is also a c e r t i f i e d public a c c o u n t
ant and p r a c t i c e d b o t h l aw and a c c o u n t i n g in Ch i c a g o f r o m 1936
to 1939.
From 1941 to 1 9 4 4 . he served in the C h i e f C o u n s e l 1s
Office, B u r e a u o f Internal Revenue, in W a s h i n g t o n , N e w York,
and Buffalo.
Since 1944 he has b e e n en g a g e d in p r i v a t e p r a c
tice in N e w York.
W I L L I A M L. KUMLER, Los A n g eles attorney.
He was b o r n in
B e l l e f o n t a i n e , Ohio, in 1911.
He r e c e i v e d arts and law d e g r e e s
f r o m Ohio State U n i v e r s i t y and was a d m i t t e d to the b a r in b o t h
Ohi o and C a l i f ornia.
He is also a q u a l i f i e d acco u n t a n t .
He
has b e e n e n g a g e d in pr i v a t e pr a c t i c e in Los A n g e l e s since 1938.
ERIC L O U I S KOHLER, C h i c a g o a c c o u n t a n t . He was b o r n in
Owosso, Michigan, in 1892, and is a g r a d u a t e of the U n i v e r s i t y
of M i c h i g a n and N o r t h w e s t e r n U n i v e r s i t y .
He was li c e n s e d as a
c e r t i f i e d p u b l i c a c c o u n t a n t in Illinois in 1916 and p r a c t i c e d
in C h i c a g o u n t i l 1938.
F r o m 1938 to 1941, he w as h e a d of the
Finance D e p a r t m e n t of the T e n n e s s e e V a l l e y A u t h o r i t y .
From
1941 to 1942, he was an a d m i n i s t r a t i v e a d v i s o r to the W a r
P r o d u c t i o n Board, and s u b s e q u e n t l y was a c o n s u l t a n t to the
Commodity Credit Corporation.
FREDERIC D. UTLEY, C h i cago a c c o u n t a n t .
B o r n in Illino is in
1886, he is a g r a d u a t e of H a r v a r d U n i v e r s i t y and a c e r t i f i e d
p u b l i c acco u n t a n t .
A f ter a long c a r e e r of p r i v a t e p r a c t i c e in
S t e r l i n g and Chicago, ill.-, aid. in Detroit, he serv e d in 19401941 as field a u d i t o r of the PLankakee O r d n a n c e W o r k s for the
A r m y in Joliet, 111.
In 1941-1942, he wa s c h i e f p r o j e c t a u d i
tor of the A r m y ’s O h i o R i v e r O r d n a n c e W o r k s at Henderson, Ky.,
and in 1 9 4 2 - 1 9 4 3 he w as a r e n e g o t i a t i o n c o n s u l t a n t of the
A r m y ’s Chemi c a l W a r f a r e S e r v i c e in W a s h i n g t o n .
Since 1943, he
has b e e n r e n e g o t i a t i o n c o n s u l t a n t o f the A r m y Q u a r t e r m a s t e r
service in Chicago.
P E T E R G U Y EVANS, N e w Y o r k a c c o u n t a n t .
B o r n in Yonkers,
N, Y., in 1909, he r e c e i v e d a c c o u n t i n g and l a w d e g r e e s f r o m
Colum b i a U n i v e r s i t y and St. Johns L a w School.
In a d d i t i o n to
p r i v a t e practice, he has b e e n a l e c t u r e r and i n s t r u c t o r in
federal t a x a t i o n at C o l u m b i a U n i v e r s i t y , R u t g e r s Univ e r s i t y ,
N e w Y o r k U n i v e r s i t y , and Rhode I s l a n d State College.
He was
ch a i r m a n o f the recent p e n s i o n t r ust c o n f e r e n c e of the
C o n t r o l l e r s Institute, and is the a u t h o r o f n u m e r o u s ar t i c l e s
and b o o k l e t s on tax mat t e r s .
4
D O N A L D MYRICK, S a n t a Barbara, C a l i f ornia, economist.
He was b o r n at S p r i n gfield, Mass., in 1893.
He is a gra d u a t e
of P r i n c e t o n U n i v e r s i t y , an d also took p o s t g r a d u a t e studies
in b u s i n e s s and e c o n o m i c s at the U n i v e r s i t y of W i s c o n s i n and
Harvard University.
In 1 9 1 7 - 1 8 he was m a n a g e r of the Santa
B a r b a r a M o r n i n g Press.
A f t e r serving in the A r m y in the First
W o r l d War, he b e c a m e trust officer, vice p r e s i d e n t and d i r e c t o r
o f the First N a t i o n a l B a n k of Santa Barbara, s e r v i n g in the
b a n k f o r ’13 years.
F r o m 1932 to 1943, he was an i n v e stment
c o u n s e l o r in S a nta B a r bara.
He came to W a s h i n g t o n fro m 19 4 3 to
1946, as a r e n e g o t i a t i o n c o n s u l t a n t and h e a d of the R e s e a r c h
U n i t of the Price A d j u s t m e n t Section, O f f i c e of the C h i e f of
Ordnance.
For this w o r k he r e c e i v e d the W a r D e p a r t m e n t *s 'official c o m m e n d a t i o n for E x c e p t i o n a l C i v i l i a n Service.
Since
February, he has served as a m e m b e r of the Price Adjustment.
B o a r d of the W e s t e r n D i s t r i c t A i r T e c h n i c a l Se r v i c e Command,
AAF.
He is the a u t h o r of m a n y a r t i c l e s on b u s i n e s s and
ec o n o m i c subjects.
H A R O L D A R T H U R E P P STON, Newark, N. J,, acco u n t a n t .
He was
b o r n in Brooklyn, N. Y., in 1897.
He was an h o n o r g r a d u a t e of
N e w Y o r k U n i v e r s i t y , w h e r e he also t o o k v a rious gradu a t e
courses.
He r e c e i v e d a l aw d e gree f r o m F o r d h a m U n i v e r s i t y ,
and is b o t h a m e m b e r of the b a r and also a c e r t i f i e d p u b l i c
accountant.
A f t e r a p e r i o d as a c c o u n t a n t for the N e w a r k Board
of E d u c a t i o n , he has since e n g aged in p r i v a t e p r a c t i c e of b o t h
law and accounting.
R, C L I F F O R D HALL, W a s h i n g t o n e c o n omist.
B o r n in Ch i c a g o
in 1885, he h o l d s d e g r e e s f r o m N o r t h w e s t e r n U n i v e r s i t y and Y a l e
University.
He e n t e r e d C 0 v e r n m e n t s e r v i c e in 1917 as a f o r e s t r y
engineer.
He was a c a p t a i n of A r m y e n g i n e e r s in the First W o r l d
War, and s u b s e q u e n t l y beca m e a v a l u a t i o n e n g i n e e r in the Bureau
of In t e r n a l Revenue for several years.
He r e t u r n e d to the
forest service f r o m 1 9 2 6 to 1943, w h e n he came b a c k to Internal
Revenue to o r g a n i z e the B u s i n e s s and I n d u s t r i a l R e s e a r c h D i v i s
ion, w h i c h he h as h e a d e d since.
This D i v i s i o n has b e e n c o m p i l
ing and i n t e r p r e t i n g the b a s i c e c o n o m i c dat a r e l a t e d to S e c t i o n
722 c l a i m s .
W I L L I A M B E R N A R D PAUL, D e n v e r r e v e n u e agent.
He was b o r n
in Pinebluff,, N. C., in 1898, and a t t e n d e d B o s t o n U n i v e r s i t y .
He r e c e i v e d a law d e g r e e f r o m W e s t m i n s t e r L a w S c h o o l (Denver),
and is b o t h an a t t o r n e y a nd a c e r t i f i e d p u blic a c c o u n t a n t . He
has b e e n in the field, service of the Income T a x U n i t of the
B u r e a u of I n t ernal Re v e n u e since 1 9 20, se r v i n g in Atlanta, Ga.,
K e y W e s t , Fla., Boston, Mass., B a n g o r , M a ine, and Denver, Colo.
He has b e e n s t a t i o n e d at D e n v e r since 1923, e x c e p t for b r i e f
special tours of d u t y in W a s h i n g t o n , w h i c h i n c l u d e d important
w o r k re l a t e d to S e c t i o n 722 claims,
‘He was f o r m e r l y p r o f e s s o r
of a c c o u n t i n g at' Regis C o l l e g e ( D e n v e r ) , and I n s t r u c t o r at the
U n i v e r s i t y of Denver, and is a f o r m e r president, of the C o l orado
So c i e t y of C e r t i f i e d Publ i c A c c o u n t a n t s .
5
-CHARLES R. JOHNSTON, W a s h i n g t o n attorney.
He was b o r n in
^ e w Y o r k in 1 9 1 0 a nd was e d u cated at the C o l l e g e of the C i t y
of N e w Y o r k and. also N e w Y o r k L aw School.
P rom 1935 to 1942,
he p r a c t i c e d law in N e w York.
He has b e e n on the legal s t aff
of the T r e a s u r y D e p a r t m e n t and the B u r e a u of Internal R e v e n u e
since 1942, s e rving p a r t i c u l a r l y as legal a d v i s e r to the
S a l a r y S t a b i l i z a t i o n U n i t fro m 1 9 4 3 to date.
H E N R Y J. D O N N E L L Yr, JR., W a s h i n g t o n acco u n t a n t .
B o r n in
P h i l a d e l p h i a in 1908, he received a d e g r e e in e c o n o m i c s f rom
the U n i v e r s i t y of Pennsylvania, and is a c e r t i f i e d p u blic a c
countant.
He was p r i n c i p a l of the M c C a n n B u s i n e s s School In
M a h a n o y City, Pa., and p r a c t i c e d
a c c o u n t i n g in P h i l a d e l p h i a
for several years.
H e . e n t e r e d the Internal R e v enue S e r vice in
1935 as a revenue agent, s e r v i n g in that c a p a c i t y in P h i l a
d e l p h i a a n d W a s h i n g t o n , u n t i l he e n t e r e d the Army.
D u r i n g the
w a r , he w as a m a j o r and c h i e f of the P r ice A d j u s t m e n t Branch,
Legal Division, O f f i c e of the C k i e f of Ord n a n c e .
Prior to
e n t e r i n g the Army, he was a B u r e a u i n s t r u c t o r and spe c i a l i s t
in the excess p r o f i t s tax, i n c l u d i n g S e c t i o n 722.
C L I F F O R D W. STOWE, D e t r o i t revenue agent.
B o r n In
Attleboro, Mass., in 1900, he a t t e n d e d B o s t o n U n i v e r s i t y and
the B e n t l e y School o f A c c o u n t i n g .
He has b e e n an internal
revenue a g ent at D e t r o i t since 1928, s e rving r e c e n t l y as a s
sistant agent in charge of the D e t r o i t D i v i s i o n .
He was also
a c h i e f c o n f e r e e in the D e t r o i t office and p a r t i c i p a t e d in
m u c h o f the p r e v i o u s r e s e a r c h on S e c t i o n 722.
*
oOo
Agtwmmi
mmâ mmmSÆ má
m& fmmálf mnm:iirsi má-
Ü t flMMlil
with Beitela 1# *
for th* futiré State#* Xt
fimmiml Isti,
expertly negotiated* Xt 1# ay ferrent hep« that ti» Coa##### ®i!X
ihte yon»ture» h*
fro® the aajer ob|««Uv«8 iottrá
whteh
of it# Xe|l#lfttÍeB ha# hoe® directed la the loot fe#
years Imi #1X1 gl## it# «aprimi to the ia§XiHil»erleaii Financial
m%9 at
'
¥«ry »l&eerèly your»# •
Secretary ef thè îre&sary
Besara&e Brent Spenee
ghalrs«»* Gemaiitee ea Banking itasi Currency,
tee i ß ne e f B»prea«ftt*tl#ee
Iteifeiagtaa, D# 8#
i U g
J U L 1 0 1948
I T io o r I r *
H# fm I m H e te ria g # btfor# yotir C o n d ite m ih# ¿agio»
la M ta a i fi*»tiel& l igr#«&#ntNatr# « la t e io » e ltM «te» I booti»#
te r o te y ## t e fr# «tey* la « t e o f t e &M# «xp o*lttea o f * r
proi##««#^ la affla# s i i a lia r
o ffì« l« l» f 1 i l i
m% M ila n i l i wmmmwg io «««k «» op p ortelty H a rro ta lo yoar
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bar# oovsrlaooi m# lami li la iotlrtbl# #aàt
la f&«i| ia©i»b#at upem m m iteratery of th# femm&y io «te***
ay profouad atavi otte H a i ilo approvai of t e àfroaaoai olili
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o f H i# oooatry m i t e «orM* fi#«# àtm m &im s ter*» I Hiak»
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of
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T R E A S U R Y DEPARTÍ,KENT
Washington
P O R II,HVIEDIATE RELEASE,
W e d n e s d a y , July 10, 1946,
Press S e r v i c e
Ho. S-19
S e c r e t a r y S n y d e r t o d a y mad e p u b l i c the f o l l o w i n g
w h i c h he has a d d r e s s e d to the H o n o r a b l e B r e n t Spence,
Committee
on B a n k i n g a nd C u r r e n c y cf
the H o u s e
letter
Chairman,
of R e p r e s e n t a t i v e s
in c o n n e c t i o n w i t h the A n g l o - A m e r i c a n P i n a n c i a l A g r e e m e n t :
M y d ear Mr.
Spence:
As y o u know, the h e a r i n g s b e fore y o u r C o m m i t t e e
on t h e A n g l o - A m e r i c a n P i n a n c i a l A g r e e m e n t w e r e a l m o s t
c o n c l u d e d w h e n I b e c a m e S e c r e t a r y of t he Treasury*
In v i e w of the a b l e e x p o s i t i o n s of m y predecessor- in
oiiice a n d o t h e r a d m i n i s t r a t i o n officials, I did n o t •
b e l i e v e it n e c e s s a r y to s e e k an o p p o r t u n i t y to express
to y o u r C o m m i t t e e m y s i m i l a r v i e w s w i t h r e s p e c t to the
Agreement*
R e c e n t d e v e l o p m e n t s , however, have c o n
v i n c e d me t h a t it is d e s i r a b l e and, in fact, inc u m b e n t
u pon me as S e c r e t a r y of t h e T r e a s u r y to express m y
p r o f o u n d c o n v i c t i o n that the a p p r o v a l of the A g r e e m e n t
w i t h B r i t a i n is a m a t t e r of u t m o s t i m p o r t a n c e and urgency.
T e s t i m o n y of w i t n e s s e s b e f o r e the r e s p e c t i v e C o m
m i t t e e s of the H o u s e a nd S e n a t e as w e l l as the deba t e
on th e f l o o r of the S e n a t e have, in my judgment, set
f o r t h w i t h a d m i r a b l e c l a r i t y the b a s i c econo m i c an,d
f i n a n c i a l r e a s o n s w h y the a p p r o v a l o f ' the P i n a n c i a l
A g r e e m e n t w i t h B r i t a i n is i m p o r t a n t to the f u t u r e w e l l
b e i n g of this oountrjr a n d t h e world*
These discussions
have
I think, a f f o r d e d an e x c e p t i o n a l l y c l e a r ' a n d
i n t e l l i g e n t bas is f o r dec is i o n . U nf o r t u h a t e l y , h o w e v e r ,
this o r i g i n a l d l a r i t y has b e e n p a r t i a l l y d i s p e l l e d in
r e c e n t days by t he i n t r o d u c t i o n into the d e bate of e x
tr a n e o u s issues*
T h e r e has been a t e n d e n c y on t he p a r t
of some, I think, to f o r g e t the b r o a d f o r e i g n economic
p o l i c y o f ^ t h e U n i t e d S t a t e s a n d to be i n f l u e n c e d by
issues w h i c h s h o u l d be s e t t l e d s e p a r ately*
,
2
I
t h i n k that in the i n t e r e s t of a l l of us,
a d e c i s i o n to a p p r o v e or d i s a p p r o v e the p r o p o s e d
credit t o B r i t a i n m u s t be b a s e d e x c l u s i v e l y upon
those c o n s i d e r a t i o n s of economic s t a b i l i t y a nd
w o r l d p e a c e w h i c h the P i n a n c i a l A g r e e m e n t was
d e s i g n e d to foster.
W o r l d trade e x p a n s i o n a n d the
e l i m i n a t i o n of economic w a r f a r e are the twin o b
jectives of our f o r e i g n eco n o m i c policy.
They
c a n n o t be a c h i e v e d in a w o r l d of c u r r e n c y r e s t r i c
tions, d i s c r i m i n a t o r y trade p r a c t i c e s a n d e c o nomic
blocs.
I a m c o n v i n c e d t hat the A n g l o - A m e r i c a n P i a n c i a l A g r e e m e n t is n e c e s s a r y to the a c h i e v e m e n t
of our objectives.
If we are serious a b o u t our
int e n t i o n s to lea d the w o r l d to p e ace a n d prosperity,
we cannot, in m y judgment, r e j e c t this o p p o r t u n i t y
to take the in i t i a l step.
T h e P i n a n c i a l A g r e e m e n t w i t h B r i t a i n is a s o u n d
e c o nomic a n d f i n a n c i a l dea l f o r the U n i t e d States.
It was s o u n d l y c o n c e i v e d a n d e x p e r t l y n e g o t i a t e d .
It^is m y f e r v e n t h ope t h a t the C o n g r e s s w i l l not, at
this juncture, be d i v e r t e d f r o m the m a j o r o b j e ctives
t o w a r d w h i c h m u c h of its l e g i s l a t i o n has been d i r e c t e d
in the la st f e w years but w i l l give its a p p r o v a l to
the A n g l o - A m e r i c a n P i n a n c i a l A g r e e m e n t .
V e r y s i n c e r e l y yours,
John W.
Snyder
S e c r e t a r y of the T r e a s u r y
Honorable Brent Spence
Chairman, C o m m i t t e e on B a n k i n g a n d C u r r e n c y
The H o u s e of R e p r e s e n t a t i v e s
W a s h i n g t o n , D. C,
0O0
m a x
- 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 betvreen the price paid for such bills,
Tihether on original issue or on subsequent purchase, and the amount actually
received either upon sale or redemption at maturity during the taxable year
for nrhich the return is made, as ordinary gain or loss.
Treasury Department Circular ho. Ul8, 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 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
July
_________•
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
I4.2 and 117 (a) (1) of the Internal Revenue Code, as amended by Section U5> 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
xxmc
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
¿-<2-0
Friday, July 12, 19U6
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
W
provided.
~~m r
The bills of this series m i l be dated
July 18. 19ii6_____
> and
will mature
October 17, 19L6
, when the face amount Trill be payable vrith-
out interest.
They m i l 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 m i l be received at Federal Reserve Banks and Branches up to the
closing hour, two o ’clock p.m., Eastern Standard time,
Monday, July 15. 19li6
Tenders will not be received at the Treasury Department, Yfashington.
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 PAPERS,
Friday, July 12, 1946________ .
Press Se r v i c e
No, S - 2 0
T he S e c r e t a r y of the Treasury, b y this public notice,
invites tenders for |>1,300,000,000, or t h e r e a b o u t s , o f 9 1 » d a y
T r e a s u r y bills, to be issu-ed 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 as h e r e i n a f t e r p r o v ided*
The b i lls o f this .series w i l l be d a t e d July 18, 1946, -and wil l
m a t u r e O c t o b e r 17, 1946, w h e n the face amount w i l l be :.payable
w i t h o u t interest.
T h e y w i l l be i s sued 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 , 0 0 0 , $10,000, $100,000,
$500,000,! a nd $ 1 , 0 0 0 , 0 0 0 (maturity value).
T e n d e r s 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 and .
B r a n c h e s up to the cl o s i n g h o u r , two o !clock p . m , , E a s t e r n
S t a n d a r d time, Monday, July 15, 1946.
T e n d e r s wil l not be
r e c e i v e d at the T r e a s u r y D e p a r t m e n t , W a s h i n g t o n .
Each tender
m u s t be for an e v e n m u l t i p l e of $ 1 , 0 0 0 , and the price o f f e r e d
m u s t be e x p r e s s e d on the b a s i s o f ' 100, .with n o t m o r e than
three decimals, e. g., 9 9 .925,
F r a c t i o n s m a y n o t be u s e d * . It
Is u r g e d that t e n ders be m a d e on the p r i n t e d ‘forms and f o r
w a r d e d in the special e n v e l o p e s w h i c h will! be su p p l i e d b y
F e d e r a l R e 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 the 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 fro m -incorporated
b a nks arid trust com p a n i e s a n d f r o m responsible, a n d r e c o g n i z e d
d e a l e r s in investment secu r i t i e s *
T e n d e r s f r o m others m u s t be
a c c o m p a n i e d by payment of .2 p e r c e n t of the face .amount, .of
T r e a s u r y b i l l s applied, f o r , ' u n l e s s the t e n d e r s are accompanied.,
by a n e x p r e s s g u a r a n t y of payment b y an, i n c o r p o r a t e d b a n k or'
trust company.'
,‘
*
"
N
I m m e d i a t e l y a f t e r the c l o s i n g hour, t e n ders wil l be opened
at the Federal R e s e r v e B a n k s and Bra n c h e s , f o l l o w i n g w h i c h
publ i c a n n o u n c e m e n t w i l l be m a d e b y the S e c r e t a r y 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 b i ds.
Those sub
m i t t i n g t e n ders 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
right to a c c e p t or reject a n y or all tenders, in w h o l e or in
part, and his a c t i o n in a n y such r e s p e c t shall be final.
Subject
to t h e s e r e s e r v a t i o n s , 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 b a s i s w ill be
a c c e p t e d in full.
Payment of a c c e p t e d tenders at the p r iee
o f f e r e d m u s t be m a d e or c o m p l e t e d at the F e d e r a l R e s e r v e 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 a v a i l a b l e f u nds on J u l y 18, 1946.
(Over)
r*. 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 a i n f r o m the sale or o t her d i s p o s i t i o n p'f t£e bills, shall
not have a n y exemption, as such, and loss from'the- sale or
o t h e r d i s p o s i t i o n of T r e a s u r y b i l l s shall n ot h a v e a n y special
t r e a t m e n t , as such, u n d e r F e d e r a l tax A cts n o w or h e r e a f t e r
e n a c t e d • The b i l l s shall be s u b ject to estate, inheritance,
gift, or othej’ 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 ncfw 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 b y a n y State, or a n y of the
p o s s e s s i o n s of the U n i t e d States, or b y a ny local t a x i n g 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 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 b y the U n i t e d S t ates shall
be c o n s i d e r e d to be i n t e r e s t .
U n d e r S e c t i o n s 42 and 117 (a)
(1) of the Internal 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 Revenue 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 n o t be c o n s i d e r e d to accrue
u n t i l such b i l l s shall be sold, r e d e e m e d or o t h e r w i s e d i s p o s e d
of, and 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 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 b i l l s (other than
life insurance companies) issued h e r e u n d e r n e e d include in his
income tax r e t u r n only the d i f f e r e n c e b e t w e e n the p r ice p a i d
for such bills, w h e t h e r on o r i ginal issue or on s u b s equent p u r
chase, and. the amount a c t u a l l y r e c e i v e d e i t h e r u p o n sale or
r e d e m p t i o n at m a t u r i t y d u r i n g the t a x a b l e y e a r for w h i c h the
r e t u r n is made, as o r d i n a r y g a i n or loss.
T r e a s u r y D e p a r t m e n t C i r c u l a r No. 418, as amended, and this
notice, p r e s c r i b e the terms of the T r e a s u r y b i lls and g o v e r n
the c o n d i t i o n s o f 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 any Federal R e s e r v e B a n k o r B r a nch.
oOo
Anglo-American Financial Agreement*,
I
am deeply gratified by the action of the House of
Representatives in approving the Anglo-American Financial Agreement,
The Senate having already approved it, the Congress has now
expressed to the world the firm determination of the United
States to continue to seek international economic cooperation«
.th the credit made available through the Financial Agreement,
the United Kingdom will now be able to assume its full obligations
for the accomplishment of the same objectives* i The new
International Monetary Fund and the International Bank may now
go forward with renewed assurance of success*
Fife
may now look
forward with more confidence to the achievement of world trade
expansion and higher levels of prosperity as foundations of a
lasting peace*
00
TREASURY DEPARTMENT
Washington
FOR IMMEDIATE RELEASE
Saturday, J u l y 15, 1 9 4 6
Secretary Snyder
upon Congressional
Press Service
No. S-21
today
approval
issued the
following
statement
of the A n g l o - A m e r i c a n F i n a n c i a l
Agreement ;
I
H o use
a m d e e p l y g r a t i f i e d b y the
of R e p r e s e n t a t i v e s
American
Financial
already approved
to the w o r l d
Stat e s
in a p p r o v i n g the A n g l o -
Agre e m e n t .
it,
the
a c t i o n of the
The
Senate h a ving
C o n g r e s s has n o w e x p r e s s e d
the f i r m d e t e r m i n a t i o n o f the U n i t e d
to c o n t i n u e to
seek i n t e r n a t i o n a l
ec o n o m i c
cooperation *
W i t h the c r e d i t m a d e a v a i l a b l e t h r o u g h the
F i n a n c i a l Agreement,
able
to assume
its
p l i s h m e n t o f the
The n e w
national
ance
the U n i t e d K i n g d o m will n o w be
full o b l i g a t i o n s
for the
accom
same o b j e c t i v e s *
International Monetary
B a n k m a y n o w go
Fund
and I n t e r
fo r w a r d w i t h r e n e w e d a s s u r
of success.
We m a y now
to the
look forward with more
a c h i e v e m e n t of w o r l d
h i g h e r levels
confidence
trade e x p a n s i o n and
o f p r o s p e r i t y as f o u n d a t i o n s
l a s t i n g peace.
0O0
of a
wn
Mailing :
list
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65
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60
60
158
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No« copies
to be sent
.................
136
200
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BUL (
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300
B&B (
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Building distribution
7/1/45
DIVISION OF PUBLIC RELATIONS
Assignment sheet.
Release date
Title
7/8% Certificate»______
6
Press Service No.
7A7/4
Bldg.
dist.
(
) Special messenger • . . . .
Mailing î
list
Î
. * *,
Q
( ) General . « . • • • • • • • • • • •
TAC
( ) Trade Agreement Commodities . . . .
22
200
Miss Rover (KLeaee deliver)
CF^
CQ
( ) Coffee quotas • . • • • « • • • • •
(
) Cotton quotas . . . .
e
•
22
e
T/i/Q (
) Wheat quotas
BUL (
)
Treasury monthly Bulletin • • ..
F
)
Finance • • . • • • • • • •
(
No. copies
./ l
167
540
142
207
V
y /• *
/
A
NM
(
)
Net Market transactions • ..
T
(
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Taxes •
167
600
151
325
174
551
150
178
156
275
U
DU
(
)
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Debt limitation .r* «
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SF
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Stabilization funcU . . . .
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B&B (
FE
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(
(
(
)
Jr
•
•
•
v
•
Bills & Bonds other than weekly • .
) Financial Editors * • • • •
) News Editors . . . . . . .
) Speech list
•
PUBLIC RELATIONS, Room 4416
e
•
•
469
1,575
•
186
#
•
300
—
150
♦
Press room • • • •
OWI . . . . . . .
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Building distribution
7/1/45
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Wednesday, July. 17, 19U6._______
Press Service
No# s _ 22
Secretary of the Treasury Snyder today announced the offering, through
the Federal Reserve Banks, of 7/8 percent Treasury Certificates of Indebted
ness of Series G-19U 7, open on an exchange basis, par for par, to holders of
Treasury Certificates of Indebtedness of Series F-I 9I4.6 , in the amount ©f
$2,Ij.69j6l9,000, Which vd.ll mature on August 1 , I 9I46. Since it is planned to
retire about $ 1 ,250 ,000,000 of the maturing certificates on cash redemption,
subscriptions vdll be received subject to allotment to all holders on an equal
percentage basis, except that subscriptions in amounts up to $25,000 Will be
allotted in full. Cash subscriptions vd.ll not be received.
The certificates now offered will be dated August 1, 19U6, and vdll bear
interest from that date at the rate of seven—eighths of one percent per annum,
payable semiannually on February 1 and August 1, 19ii7. They will mature
August 1, 19147. They will be issued in bearer form only, in denominations of
$1 ,000 , $ 5 ,000 , $ 10 ,000 , $ 100,000 and $ 1 ,000 ,000 .
Pursuant to the provisions of the Public Debt Act of 19Ul, 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 vdll 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 vdll close at the close of business Friday, July 19,
except for the receipt of subscriptions from holders of $ 25,.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, July 22.
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, vdll 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 G-19U7
Due August 1, 19l*7
Dated and bearing interest from August 1, 19l*6
19U6
Department Circular No. 791
TREASURY DEPARTMENT,
Office of the Secretary,
Washington* July 17* 191*6.
Fiscal Service
Bureau of the Public Debt
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 G-19U7, in
exchange for Treasury Certificates of Indebtedness of Series F-I 9I46, maturing
August 1, 191*6, Approximately $1,250,000,000 of the maturing certificates will
be retired on cash redemption.
II.
DESCRIPTION OF CERTIFICATES
1. The certificates will be dated August 1, 191*6, and will bear interest
from that date at the rate of 7/8 percent per annum, payable semiannually on
February 1 and August 1, 19U7. They will mature August 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 wall 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 cer
tificates.
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
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 subscription, 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 $ 25,000
vail be allotted in full, and subscriptions for amounts over $ 25,000 will be
allotted to all holders on an equal percentage basis, but not less than $25,000
on any one subscription. The basis of the allotment will be publicly announced,
and allotment notices will be sent out promptly upon allotment.
IV.
PAYMENT
1. Payment at par for certificates allotted hereunder must be made on or
before August 1, 19li6, or on later allotment, and may be made only in Treasury
Certificates of Indebtedness of Series F-19U6, maturing August 1 , I 9I46, which
will be accepted at par, and should accompany the subscription.
V.
GENERAL PROVISIONS
1. As fiscal agents of the United States, Federal Reserve Banks are
authorized and requested to receive subscriptions, to make allotments on the
basis and up to the amounts indicated by the Secretary of the Treasury to the
Federal Reserve Banks of the respective Districts, to issue allotment notices,
to receive payment for certificates allotted, to make delivery of certificates
on full-paid subscriptions allotted, and they may issue interim receipts pend
ing delivery of the definitive certificates.
2. The^ Secretary of the Treasury may at any time, or from time to time,
prescribe supplemental or amendatory rules and regulations governing the offering, which will be communicated promptly to the Federal Reserve Banks.
John W. Snyder,
Secretary of the Treasury.
TREASURY DEPARTMENT
Washington
Press Service
FOR RELEASE* lOMIHG MMSPAPERS,
Tuesday, July 15» 19^6«
The Secretary of the Treasury announced last evening that the tenders for
11,300,000,000, or thereabouts, of 91-day Treasury bills to be dated July 18 and to mature
October 17, 19l*6, which sere offered on July 12, 191*6, sere opened at the Federal Reserve
Banks
m
July 1$.
The details of this issue are as follows*
Total applied fo r
Total accepted
Average price
$1,89U,'35>U,000
■«* 1 ,310 ,£17,000
(includes $i*0,35>6,000 entered on a fixed-price
basis at 99*90$ and accepted in full)
I
- 99*90$/ Equivalent rate of discount approx. 0.373# per annua
| ]
Range of accepted competitive bids:
High
Los
-
99*907 Equivalent
99*90$
*
rate of discount approx. 0.368^5 per annum
m * 9
m
0*376% •
*
(61 percent of the amount bid for at the low price was accepted)
Federal Reserve
District
Total
Applied for
Total
Accepted
Boston
Bes York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St* Louis
Minneapolis
Kansas City
Dallas
San Francisco
|
i
TOTH
15,275,000
1,U27,7S2,000
18,735,000
5,l*5o»ooo
10,115,000
11,515,000
277,280,000
29,629,000
1,955,000
26,k38,000
9,875,000
60,775,000
$1,89U,35U,000
10,985,000
920,236,000
H»,U5,ooo
5,1*50,000
8,702,000
11,1*76,000
21*3,350,000
19,216,000
i,955,ooa
21,368,000
9,719,000
1»3,615,000
| a ,310,517,000
TREASURY DEPARTMENT
Washington
FOR RELEASE, M O R N I N G N E W S P A P E R S ,
Tuesday, July 16, 1946
Press S e r v i c e
No. S -23
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 ning
the tenders for $ 1 , 3 0 0 , 0 0 0 , 0 0 0 , or there a b o u t s , o f 9 1 -day
T r e a s u r y bills to be d a t e d July 18 and to m a t u r e O c t o b e r 17,1946
w h i c h wer e of f e r e d on July 12, 1946, were o p e n e d at the Federal
R e s e r v e Banks on J u l y " I S .
The d e t a i l s of this
issue
are as
follows:
Total a p p l i e d for - | l , 8 9 4 , 8 5 4 * 0 0 0
Total a c c e p t e d
1,310,517,000
.
A v e r a g e price
.
- 9 9 , 9 0 5 / Equiv.
./
Range of a c c e p t e d
High
Low
(includes & 4 0 , 356,000 e n t ered
on a f i x e d - p r i c e basis at
9 9 . 9 0 5 and a c c e p t e d in full)
rate o f d i s c o u n t approx. 0 , 3 7 5 $
pe r a n n u m
c o m p e t i t i v e bids:
- 9 9 . 9 0 7 Equiv. rate of d i s c o u n t
- 99.905
"
, ff
w
it
(61 percent
of the amount
Federal Reserve
District
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Ch i c a g o
St. Louis
Minneapolis
Kansas Cit y
Dailas
San Francisco
TOTAL
approx.
"n
0 . 3 6 8 $ p er a n n u m
0.376$
"
"
b i d for at the low price, was
Total
Applied
f o r __
accepted)
T o tal
______A c c e p t e d
$>
15,275,000
1,427,782,000
18.735.000
5.450.000
10.145.000
11.515.000
277,280,000
29.629.000
. 1,955,000
26.438.000
9.875.000
60.775.000
$
11,894,854,000
$1,310,517,000
10,985,000
920.236.000
14.445.000
5.450.000
8.702.000
11.476.000
243.350.000
19.216.000
1.955.000
21.368.000
9.719.000
43, 615,000
s-< z y
? 0R IMMEDIATE RELEASE
July 1 6 » 19^6
The Bureau of Customs announced today figures shoving the
quantities of ooffee entered for consumption during the period
commencing October 1 9 19 *15» as follows:
Quantity in Pounds
As of April 30 , I9H6
Country of Production
Signatory Countries:
S53#i 6^,o s o
Brasil
Colombia
Costa Rica
Cuba
Dominican Republic
Ecuador
El Salvador
Guatemala
Haiti
Honduras
Mexico
Nicaragua
Peru
Venezuela
398 ,60 7 ,567
17,706.970
290
17,>«8,379
9,092,S27
29,155.U31
U9,U35,>»53
15,270,187
5,076,821
lH.8U6.32U
11,950,12S
2,379.907
32,037,179
Non-Signatory Countries:
TOTAL
26.992.U09
1,510,951,952
The above data reflects the amount of coffee for which
entries for consumption were filed during the period
October 1 , 19^5 to April 30 » 19^6 and is the final report
to be disseminated by the Bureau of Customs.
TREASURY DEPARTMENT
Washington
F O R I M M E D I A T E RELEASE,
T u e s d a y , J u l y 16. 1946
Press S e r vice
No! S - 2 4
Tne B u r e a u o f C u s t o m s a n n o u n c e d t o day figures s h o wing
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 period c o m m e n c i n g O c t o b e r 1, 1945, as follows:
C o u ntry of P r o d u c t i o n
Q u a n t i t y in Pounds
______ - .
_________________________ As o f April 30, 1946
Signatory
Countries:
B r azil
Colombia
Costa Rica
Cuba
Dominican Republic
Ecuador
El S a l v a d o r
G u a t emala
Haiti
Honduras
Mexico
Nicaragua
Peru
Venezuela
853,164,080
398,607,567
17,706,970
290
17,428,379
9,092,827
29,155,431
49,435,453
15,270,187
5,0 7 6 , 8 2 1
41,846,324
11,958,128
2,379,907
32,837,179
S i g n a t o r y Countries:
26,992,409
TOTAL
1,510,951,952
^The a b o v e data reflects the a m o u n t o f c o ffee for w h i c h
entpie s 'for c o n s u m p t i o n were f i l e d d u r i n g the period O c t o b e r
1, 1945 to April 30, 194 6 and is the final reoort to be
d i s s e m i n a t e d by the B u r e a u of Cus t o m s .
oOo
Mrs. Legg
Mr, Lindow
Mr. Maxwell (*+330)
Mr. McBonald
Miss Michener
Mr. L . V . Moore
Mr. M. Moore
Mr. M u lv ih ill (531 W .B.)
M
rs. Naud
Mr, Cake
Mr, Church
Mr. Nisonger (I+U09)
Mr. O ’ Connell
Mr, Coe
Mr. O ’ B a n ie l (517 W .B.)
Mrs, Coon
Mr. Peterson ( B is b .)
M iss C u llen
M rs. P o tts
Mr. Cunningham
Mr. Rabon
Mrs, Bay (3^21)
M rs. H a lf (132*0
Mr. Belano
Mr. Reeves
Mr, B ie t r ic h
Mrs» Root
Mr• Eddy
M rs. Ross
Mrs. B a r r e ll (5323)
M iss Rousseaux (*+319)
M iss P lo r in (i-125)
M iss Sanford (512*+)
Mr. Frese
Mr. Schoeneman
Mr. Gerardi (523 W.B.)
—Mr. Schwalm (5^2 W .B.)
Miss Gibson
C
S h a e ffe r
Mr. Glasser (3^37)
^—
'
f
i
r
*
Slin d ee
Mr. Greenberg
Mr.
Smith
Mr. Gunter (2222)
Mr. Speck
Mr. Haas
Mr. S ta r r a tt
Mr. Handy
M iss Stockw ell
Mr. H earst
Mr. Tickton
Mr. H e ffe lfin g e r
Mr. T ie tje n s .
Mr. Howard (821 W .B.)
Mr. Upham
M iss Hodel
M iss Vassar
Mr. Hyland (3U13)
M rs. Walker
Mr. Jones (2^9)
M rs. Warneson
Mr. Jordan
Mr. Weber
M iss K a ile y (3013)
M iss White
Mr, K e lle y
Mr. White
Mr. K ilb y
Mr. Ziegenfus
Mr. Landis
' Mjm* -ftr-nri f
Mr, Batchelder
Mr, Bernstein (3^5)
Mr, Brennan (Bist)*)
Mr, Brogan (Bisb.)
Mr, Burdette (31H)
Miss Burke
B & W (^308)
fa
Ï
^vW-
7 — to
Mr. S h a e ffe r
M iss Sanford
HNaud
XfM
ad# during the month
i t i e $ o f the Governt«s
,800,000
.000,000
.800.000
rg
vt Account#
' jfyv*'
juiy a # m 6
TO MR.
RTELT*
The following market transactions were sad* during the month
of June, 1946, in direct and guaranteed securities of the Govern
ment for treasury investment and other accounts?
Sales »»**♦»*♦•*••«**«•****♦*****•**
Purchases
Set sales
%*TX‘$800^000
2.QQQ«QQQ
..... .............t69.800.0Qq
(9^>
a « * ' * ’1
Joseph Greenberg
Assistant Commissioner o f Accounts
CC t o i Mr. H e ffe lfin g e r
Mr. S h a e ffe r
M iss Sanford
Maud
Ufi
TREASURY DEPARTMENT
Washington
POR IMMEDIATE RELEASE
Thursday, July 18, 1945
Press Service
No. S -25
During the month of June, 19 4 6 , market transactions- in
direct and guaranteed securities of the Government for
Treasury investment and other accounts resulted
of. $69,800,000, Secretar y Snyder announced today
0O0
net sales
ftp
tmm
- 3 -
solds redeemed or otherwise disposed of, and sucn 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 tne 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 tne 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 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
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
i|2 and 117 (a) (1) of the Internal Revenue Code, as amended by Section 115> 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
J ? - *2 - &
FOR RELEASE, MORNING NEWSPAPERS
Friday. July 1° 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
on a discount basis under competitive and fixed-price bidding as hereinafter
provided.
The bills of this series m i l be dated
July 25» 19U6______
,
and
will mature
October 2ii. 19U6
, when the face amount will be payable with-
out interest.
They will be issued in bearer form only, and in denominations
of $1,000, $5,000, $10,000, $100,000, $ 500 ,000 , and $1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the
closing hour, two o ’clock p.m., Eastern Standard time, Monday« Ju"
^2, 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 ,
F O R RELEASE, M G R K I N G ■N E W S P A P E R S ,
Friday, -July 19, 1946,
-
'
' "* •'
--J T-'- J'TjT
♦
- - I'A
1 .
-1
u -■» -
- — — ■■■h u m
,
P n ess S-s/rvi'ce
No. S - 2 6 '
''
T he S e c r e t a r y of the Treasury, b y this p u b l i c notice, i n
vites tenders f o r > $ 1 , 300 , 000 ,000 , or thereabouts, of 9 1 - d a y
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 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 provided*
The bills of this series w i l l be dated. July 25, 1946, a n d w i l l
m a t u r e O c t o b e r 24, 1946, w h e n ‘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 will' be issued,.in b e a r e r f o r m only,
a n d in d e n o m i n a t i o n s of $ 1 ,000 , .$5 ,000 ', $ 1 0 ,000 , $ 1 0 0 ,000 ,
$500,000, a n d $ 1 , 0 0 0 , 0 0 0 ( m a t u r i t y v a l u e )• 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 B a n k s a n d
B r a n c h e s up to the c l o s i n g hour, two o Tc l o c k p . m . , E a s t e r n
S t a n d a r d time, Monday, Jul y 22, 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 e p a r t m e n t , W a s h i n g t o n .
Each tender
m u s t , b e f o r a n ^ e v e n m u l t i p l e of $ 1 ,000 , and t h e - p r i c e of f e r e d
/must' oe e x p r e s s e d on t he basis of 1 0 0 , w i t h n o t mor e than t h r e e
decimals, e. g * 99*925.
F r a c t i o n s m a y not be-used.
It is
u r g e d t h a t t e n ders b e - m a d e on the p r i n t e d forms a n d f o r w a r d e d
in the s p e c i a l e n v e l o p e s w h i c h will. ;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.
;• • '
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 companies, a n d f r o m r e s p o n s i b l e a n d r e c o g n i z e d
dealers in i n v e s t m e n t s e c u r i t i e s .
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 face a m o u n t of
T r e a s u r y bills a p p l i e d for, u n l e s s the tenders are a c c o m p a n i e d
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
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 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
p u b l i c a n n o u n c e m e n t w i l l be m a d 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 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 t e n d e r s 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 reserves 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, 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 shall be
final.
S u b j e c t to t h e s e r e s e r v a t i o n s , t e n ders f o r $ 2 0 0 , 0 0 0
or less i r o m a n y one b i d 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
basis w i l l b e 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 p r i c e s 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 a t the 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 i m m e d i a t e l y a v a i l a b l e funds on
July 25, 1 9 46.
(O v e r )
2
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 auth
ority.
For purposes of taxation the amount of discount at
which Treasury bills are originally sold by the United States
shall be considered to be interest.
Under Sections 42 and 117
(a) (1) of the Internal Revenue Code, as amended by Section 115
of the Revenue Act of 1941, the amount of discount at which
bills issued hereunder are sold shall not be considered to
accrue until such bills shall be sold,..redeemed or otherwise
disposed of, and such bills are excluded from consideration
as capital assets. Accordingly, the owner of Treasury bills
(other than" life insurance.companies) issued hereunder need in
clude 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 rec-oivqd 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 U o , 418, as amended, and
this notice, prescribe the terms of the Treasury bills and.'
govern the conditions of their issue.
Copies of the circular*
may be obtained from any •Federal Reserve Bank or Branch.
oOo
<
m & SU ET DEPARTMENT
Washington
FOE RELEASE,
HEISPAmS,
Press Service
Tuesday» Jaly 23» 19li6»
S e c r e t a r y of the Treasury announced last evening that the tenders for
$1,300,000,000, or thereabouts, of 91-day Treasury Mils to b e dated July 2$ and to mature
October 21*, 19lt6, which sere offered on July 19* IfW* sere opened at the Federal Reserve
Banks on July 22*
The details of this issue are as follows*
Total applied for - $1,767,751,000
Total accepted
- 1,305,129,000
Average price
(includes $35*286,000 entered on a fixed-price
basis at 99*90$ and accepted in full)
-> 99*905/ Equivalent rate of discount approx* 0*37$% per annum
Bangs of accepted competitive bids*
«* 99*907 Equivalent rate of discount approx* 0*368£ per annua
- 99*905
»
•
*
*
•
0.376* *
9
High
Is*
(71 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
kHnnoopali a
Kansas City
Dallas
San Francisco
i
9,1*25,ooo
1,357,799,000
13,210,000
8,825,000
18,895,000
7,270,000
252,1*80,000
13,235,000
2,357,000
27,120,000
3,535,000
53,600,000
1
*1,767,751,000
*1,305,129,000
TOTAL
7,1*21*,000
991,381*,000
10,136,000
7,375,000
15,053,000
7,270,000
183,750,000
9,900,000
2,357,000
23,7®,000
3,535,000
1*3,160,000
TREASURY DEPARTMENT
Washington
FOR .RELEASE, M O R N I N G N E W S PAPERS*
Tuesday, July 25, 1946________
Press S e r vice
No, S-27
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 t l ,300,000,000, or t hereabouts, of 9 1 -day
T r e a s u r y ^bills to be dated July 25 and to m a t u r e O c t o b e r 24,
1946, w h i c h were o f f e r e d on July 19, 1946, wer e o p e n e d at the
Federal Re s e r v e Banks on J u l y 22.
T h e d e t a i l s of this
issue are as follows:
Total a p p l i e d for - f 1 , 7 6 7 , 7 5 1 , 0 0 0
Total accepted.
1,305,129,000
Average
price
- 9 9 . 9 0 5 / Equiv.
Range of a c c e p t e d
H i g h - 9 9 . 9 0 7 Equiv.
Low
- 99,905
n
c o m p e t i t i v e bids:
rate of d i s c o u n t
rf
ff
n
(71 p e r c e n t , o f the a m o u n t ‘b i d
Federal R e s e r v e
Dis trict
Bos ton
New York
Philadelphia
Cle v e l a n d
:-Richmond
At l a n t a
, Chicago
St. Louis
* Minneapolis
K a nsas City
Dall a s
San Francisco
TOTAL
(includes f S 5 , 2 8 6 , 0 0 0 e n tered
on a f i x e d r p h 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
a p p r o x 0 . 3 6 8 % per a n n u m
n
0.376%
w
M
for at the l o w price was accepted)
Total
A p p l i e d for
$
9,425,000
1,357,799,000
13,210,000
8,825,000
18,895,000
7,270,000
252,480,000
13,235,000
2,357,000
27,120,000
3 , 5 3 5 , Q 00
53,600,000
f l ,767, 7 51, 000
oOo
Total
Accep t e d
fP
7,424,000
991,384,000
10,136,000
7,375,000
15,053,000
7,270,000
183,750,000
9,900,000
2,357,000
3,78 o ,000
3,535,000
43,160,000
d
$>1 , 3 0 5 , 1 2 9 , 0 0 0
At that time and subsequently, prior to the outbreak of
the war with Japan, provision had been made for a program
which would have enabled the Philippine Republic to stand on
its own feet economically as well as politically when inde
pendence was achieved*
The war has completely altered that
situation and it is clearly our obligation to provide the
help which is now needed to achieve the objectives which
Congress laid down in our basic legislation.
In view of all the foregoing, I urge that Congress enact
H. J. Res. 383, reducing the total amount authorized from
009» G O Û
t
O t C L OÔG
$100. million to $75 million.
J
/
-
6
-
may arise pending the working out of a longer range program.
I would hope that the Philippine Government, out of its
own resources, could make a substantial contribution, at
least, to meeting the longer range problems.
I should like to point out that inasmuch as the funds
which would be extended under this legislation will be used
to finance internal governmental expenditures rather than
the importation of goods from the United States, they will
not contribute directly to inflationary pressures here at
home.
President Truman has recently said that the United States
will assist the new Philippine Republic in every way possible.
The United States Government has a special obligation to
the Philippines, not only in view of our past stewardship,
but also because of the magnificent and loyal resistance which
the Philippines put up against the Japanese aggressors.
This
resistance made a material contribution to the expulsion of
the Japanese from the Philippines and to the shortening of
the Pacific Campaign.
The critical situation which t he
Philippine Government faces as the Islands achieve independent
status as a member of the community of nations is not one which
could have been foreseen at the time that the United States
Congress, twelve years ago, enacted the Tydings-McDuffie Act.
- 5 study would be available for consideration by the American
and Philippine Congresses early in 1947.
For the interim, until such a study can be made, the
Treasury Department and the National Advisory Council support
the enactment of temporary emergency legislation to cover
the needs which may arise in the current fiscal year.
Since
it is not certain that all of the funds auihorized will be
needed by the Philippine Government, the bill under considera
tion properly provides for the extension of credits to the
Philippines in such amounts and at such times as the need for
funds arises as determined by the Secretary of the Treasury
after consultation with the National Advisory Council.
The
actual terms on which such credits will be extended are not
specified.
This seems to me desirable since they can best
be determined at such time as the credits are extended in
the light of what appears to fit most nearly the Philippine
Governments situation at that time.
This approach is sound
and conservative, since the National Advisory Council will
make periodic review of financial developments in the Philippines
and the Governments needs before credits are advanced.
This
legislation, in effect, covers possible contingencies which
- 4 <JOO,©©0
total is the $10G million requested for the current fiscal
year.
It is the feeling of the National Advisory Council
that a broad program of this magnitude should not be under
taken before additional study has been made of the facts
and other ways in which the Philippine Government might
achieve a solution of this problem.
We do not now have suf
ficient facts upon which to consider the Philippine Government's
needs for the next five years.
It would be unfortunate if
the infant Philippine Republic were to be saddled with an
external debt of this size if it were not necessary.
For
this reason the National Advisory Council has concluded that
it would be desirable if a joint American-Philippine Commission
could be established in the immediate future to consider in
Manila and in Washington the financial and budgetary problems
of the Philippines in view of further data which should be
obtained and make recommendations to the two governments.
Such a study would be essential to working out a sound long
range program for the Philippines.
Among the topics that it
is felt that such a Commission might explore are the moderniza
tion of the tax system of the Philippine Government, and
measures which might be taken to mobilize and utilize the avail
able resources of the Philippines.
I would hope that such a
- 3 compared with previous years and a number of emergency
rehabilitation projects.
Although it is the feeling of the
National Advisory Council that there are a number of measures
which the Philippine Government could itself take to produce
income in addition to the amount that is shown in their
budget estimates, the National Advisory Councils figure of
$75 ajrllion is an outside estimate of the amount required even
if the Philippine Government took no steps to increase its
revenues beyond those outlined in its budget.
I mention these
points in order that this Committee and Congress may have the
benefit of our thinking in considering the amount which the
bill should authorize.
Turning to other and broader considerations, I feel that
it is very important that Congress act upon this bill at the
present session.
The bill, wisely, I feel, would not authorize
any assistance to the Philippine Government beyond the end
of the current fiscal year.
President Roxas has envisaged
ooO/ cHrt}
that a total of approximately $ 4 0 0 / would be required
by the Philippine Government over the next five years to cover
00 0/
its anticipated budgetary deficits.
Included in the $400, ailiteir
-
2
-
The b i l l which th is Committee is considering today
would authorize the extension of c r e d its 'to the P hilip pin e
q?GO/
Government in amounts up to $100,naAArm during the present
fiscal year.
As your Committee knows, this bill was intro
duced by Congressman Bell who attended the inauguration
ceremonies in Manila on July 4th.
While he was in Manila,
Congressman Bell had the benefit of first hand discussions
of the Philippine financial problem with Ambassador McNutt
and President Roxas.
The credit of $ 1 0 ^ m y ^ « m - i s the amount
requested for this fiscal year by President Roxas and endorsed
by Ambassador McNutt.
o-irt)
In arriving at the figure of $75^ million ■as the amount
o f credit which should be authorized fo r the Philippine
Government during the current f i s c a l year, the N ational Advisory
Council most carefully considered all of the fac1s available
in Washington and the very comprehensive data submitted to us
by the P hilip pin e Government.
I t is the considered judgment
^
o f the National Advisory Council that
CHH)
$75, ailliwr is the
maximum amount that the P h ilip p in e Government would need to
carry i t through the present f i s c a l year, taking into considera
tio n not only i t s ordinary governmental
outlays, but a consider
able increase in the amount authorized fo r national defense as
Mr. Chairman, I am happy to appear before this Committee
today to discuss the legislation introduced by Congressman
p
Bell to authorize a credit
o9
Philippine Government dir ing this fiscal year.
Last May, the then President-elect Roxas and Mr . McNutt
spoke to my predecessor, Judge Vinson, about the need of the
Philippine Government for financial assistance from the
United States in meeting its anticipated budgetary deficits
over the next five years.
In June President Roxas sent a
formal application to me as Secretary of the Treasury requesting
such a loan.
This request bore the strong endorsement of Mr.
McNutt
On receipt of President Roxas1 application, I asked the
National Advisory Council on International Monetary and
Financial Problems to give this matter its preferred attention,
and on July 15, 1946, the members of the National Advisory
Council agreed that it is important that this session of
Congress enact legislation which would authorize an extension
q
QÓ Q O Q
of credits up to $75,million until July 1, 1947, to meet
the possible budgetary requirements of the Philippine Govern
ment over this period.
Statement -fey Secretary Snyder before the
House Banking 'and Currency Committee in
connection with the pending Philippine Loan Bill
(delivered by Joseph J. 0*Connell, Jr.,
General C ouns eljo ff
TREASURY DEPARTMENT
Washington
Statement of Secretary Snyder before the Committee
on anting and Currency, House of Representatives,
m connection with the pending Philippine Loan Bill.
(Delivered by Joseph J, O'Connell,
10:30 A . M *f Wednesday,
Jr., General Counsel)
July 24, 194 6
™
i
iS?Py t0 aP P ear before this Committee
discuss the legislation introduced by Congressman Bell
to authorize a_ credit of up to 1,100,000,000. to the Philippine
Government during
t ncr t.Vn s fiscal year.
today tc
„ . L fst M a y ’ R 16 then p resident-elect Roxas and Mr. McNutt
Phil 1 nni’noy rPredeCeSr r ’ Jli?ge Vinson> about the need of the
hilippine Government for financial assistance from the United
„ h i L ln meetlnS its anticipated budgetary deficits over the
... fl7e years.
In June President Roxas sent a forma] applil o a n ^ i h J 6 8S ie°r®tary
the Treasury requesting such a
n. This request bore the strong endorsement of Mr. McNutt.
National rAH?MPt ofpPrestdent Roxas’ application, I asked the
cial P pihlf ^ S?ry ?°un 2R on International M °netary and Finan^
f J a g LTO thlf matter its preferred attention, and
, ? 7 '■'46 , the members of the National Advisory Council
agreed that it is important that this session of Congress enact
# 7 f 1O O O tnon
would^authorize an extension of credits up to
^75,000,000 until July 1 , 1947, to meet the possible budgetary
quirements of the Philippine Government over this period.
ant-v^R16 bh 1 willch this Committee is considering today would
authorize the extension of credits to the Philippine Government
n amounts up to 1-100 ,0.00,000 during the present fiscal year
As your Committee knows, this bill was introduced S c S ; .
Ju]yB 4 th WhWhi 1t t 9iided th® inaugu ration ceremonies in Manila on
benefit of n h *
®aa in Manila, Congressman Bell had the
oenefit of first hand discussions of the Philinnine financial
o f ° n o o 000h0O O b? SS?b°r MoSUU and Presldent R°i a a * The credit
; - ^ ? » * 000
the amount ^ q u e s t e d for this fiscal year bv
resident Roxas and endorsed by Ambassador McNutt.
pL
S-28
2
In a r r i v i n g at the figure o f $ 7 5 , 0 0 0 , 0 0 0 as the amount of
credit w h i c h should be a u t h o r i z e d for the P h i l i p p i n e G o v e r n m e n t
d u r i n g the current fiscal year, the N a t i o n a l A d v i s o r y Council
m o s t c a r e f u l l y c o n s i d e r e d all of the facts a v a i lable in
W a s h i n g t o n and the v e r y c o m p r e h e n s i v e data s u b m i t t e d to us by
the Phil i p p i n e Gove r n m e n t .
It is the c o n s i d e r e d j u d gment of the
N a t i o n a l A d v i s o r y Co u n c i l that $ 7 5 , 0 0 0 , 0 0 0 is the m a x i m u m amount
that the P h i l i p p i n e G o v e r n m e n t w o u l d need to carry It t h r o u g h
the present fiscal year, taking into c o n s i d e r a t i o n not onl y Its
o r d i n a r y g o v e r n m e n t a l outlays, but a c o n s i d e r a b l e i n c rease in
the amount a u t h o r i z e d for na t i o n a l d e f e n s e as c o m p a r e d w i t h p r e
vious y e a r s and a n u m b e r o f e m e r g e n c y r e h a b i l i t a t i o n projects.
A l t h o u g h it is the feeling of the N a t i o n a l A d v i s o r y Co u n c i l that
there are a n u m b e r of m e a s u r e s w h i c h the P h i l i p p i n e G o v e r n m e n t
could itself take, to p r o d u c e Income In a d d i t i o n to the amount
that is shown in t h eir b u d g e t estimates, the N a t i o n a l A d v i s o r y
C o u n c i l ’s figure o f ^ 7 5 , 0 0 0 , 0 0 0 is an o u t s i d e estimate o f the
amount r e q u i r e d eve n if the P h i l i p p i n e G o v e r n m e n t took no steps
to i n c rease its r e v enues b e y o n d those o u t l i n e d in its budget.
I m e n t i o n these points in o r d e r that this C o m m i t t e e and Congress
m a y have the benefit of our t h i n k i n g in c o n s i d e r i n g the amount
w h i c h the bill should authorize.
T u r n i n g to other and b r o a d e r con s i d e r a t i o n s , I feel that It
is v e r y important that C o n g r e s s act u p o n this bil l at the p r e s
ent session.
The bill, wisely, I feel, w o u l d not a u t h o r i z e any
a s s i s t a n c e to the P h i l i p p i n e G o v e r n m e n t b e y o n d the end of the
current fiscal year.
P r e s i d e n t Roxas h a s e n v i s a g e d that a
total of a p p r o x i m a t e l y $ 4 0 0 , 0 0 0 , 0 0 0 w o u l d be r e q u i r e d by the
P h i l i p p i n e G o v e r n m e n t over the n e x t five years to c o v e r Its
a n t i c i p a t e d b u d g e t a r y def i c i t s .
I n c l u d e d in the $>400,000,000
total is the $ 1 0 0 , 0 0 0 , 0 0 0 ' r e q u e s t e d for the current fiscal year.
It is the f e e ling of the N a t i o n a l A d v i s o r y C o u n c i l that a b r o a d
p r o g r a m of this m a g n i t u d e should not be u n d e r t a k e n b e f o r e a d d i
tional study has b e e n m a d e of the facts and o t h e r w a y s in w h i c h
the P h i l i p p i n e G o v e r n m e n t m i g h t a c h i e v e a s o l u t i o n of this
problem.
We do not n o w have suf f i c i e n t facts u p o n w h i c h to
c o n s i d e r the P h i l i p p i n e G o v e r n m e n t ’s n e e d s for the n ext five
years.
It w o u l d be u n f o r t u n a t e i f the i n fant P h i l i p p i n e R e p u b l i c
were to be s a d dled w i t h an e x t e r n a l d e b t of this size if it were
not n e c e s s a r y .
For this reason the N a t i o n a l A d v i s o r y Co u n c i l h a s
con c l u d e d that it w o u l d be d e s i r a b l e if a joint -American-Philippine C o m m i s s i o n could be e s t a b l i s h e d in the im m e d i a t e future to
c o n s i d e r in M a n i l a and in W a s h i n g t o n the f i n a n c i a l and b u d g e t a r y
p r o b l e m s of the P h i l i p p i n e s in view of further data w h i c h should
be o b t a i n e d and m a k e r e c o m m e n d a t i o n s to the two g o v e r n m e n t s .
5
S u c h a study w o u l d be essential to w o r k i n g out a sound long
range p r o g r a m for the P h i l i p p i n e s .
A m o n g the topics that it
is felt that such a C o m m i s s i o n m i ght e x p l o r e are the m o d e r n
ization of the tax s y s t e m of the P h i l i p p i n e Government, and
m e a s u r e s w h i c h m i g h t be taken to m o b i l i z e , a n d u t i l i z e the
a v a i l a b l e resources o f the P h i l i p p i n e s .
I w o u l d h o p e that
s u c h a s t u d y w o uld be a v a i l a b l e for c o n s i d e r a t i o n b y the
A m e r i c a n and P h i l i p p i n e C o n g r e s s e s early in 1947.
For the interim, u n til s u c h a s t u d y can be made, the
T r e a s u r y D e p a r t m e n t and the N a t i o n a l A d v i s o r y C o uncil support
the ena c t m e n t of t e m p o r a r y e m e r g e n c y l e g i s l a t i o n to cover the
n e eds w h i c h m a y arise in the c u r rent fiscal y e ar.
Since it
is not certain that a l l ' o f the funds a u t h o r i z e d wil l b e n e e d e d
by the P h i l i p p i n e G o v e rnment, the b i l l u n d e r c o n s i d e r a t i o n
p r o p e r l y p r o v i d e s for the e x t e n s i o n of credits to ,the P h i l i p
pines in such a m o u n t s a nd at such times as the n e e d for funds
arises as d e t e r m i n e d b y the S e c r e t a r y of the T r e a s u r y after
c o n s u l t a t i o n w i t h the N a t i o n a l A d v i s o r y Council.
The actual
terms o n w h i c h s u c h c r e dits will be e x t e n d e d are not specified.
This seems to me d e s i r a b l e since t h e y can b e s t be d e t e r m i n e d at
such time as the credits are e x t ended in the l i ght of w h a t a p
pears to fit most n e a r l y the P h i l i p p i n e G o v e r n m e n t ’s s i t u a t i o n
at that time.
This a p p r o a c h is sound and c onservative, since
the N a t i o n a l A d v i s o r y C o u n c i l wil l m a k e p e r i o d i c review of
financial d e v e l o p m e n t s in the P h i l i p p i n e s and the G o v e r n m e n t ’s
n e e d s b e f o r e credits are advanced.
T h i s legis l a t i o n , in effect,
covers possible c o n t i n g e n c i e s w h i c h m a y arise p e n d i n g the w o r k
ing out of a longer range program.
I w o u l d h ope that the
P h i l i p p i n e G overnment, out of its ow n resources, could m ake a
subs t a n t i a l c o n t r ibution, at least, to m e e t i n g the l o n g e r range
problems.
I
should like to point out that i n a s m u c h as the funds
w h i c h w o u l d be extended u n d e r this l e g i s l a t i o n w ill be u s e d to
finance internal g o v e r n m e n t a l e x p e n d i t u r e s r a t h e r than the i m
p o r t a t i o n of goods f r o m the U n i t e d States, they w i l l n o t c o n
tribute d i r e c t l y to i n f l a t i o n a r y p r e s s u r e s h ere at home.
Pr e s i d e n t T r u m a n has r e c e n t l y said that the U n i t e d States
will a s s i s t the n e w P h i l i p p i n e R e p u b l i c in e v e r y way possible.
The U n i t e d S t ates lias a special o b l i g a t i o n to the Philippine s,
n ot o n l y in v i e w of o u r past stewardship, b u t als o b e c a u s e of
the m a g n i f i c e n t and loyal r e s i s t a n c e w h i c h the P h i l i p p i n e s put
up a g a i n s t the Ja p a n e s e a ggressors.
Thi s r e s i s t a n c e m a d e a
m a t e r i a l c o n t r i b u t i o n to the e x p u l s i o n of the Ja p a n e s e fro m
the P h i l i p p i n e s and. to the s h o r t e n i n g o f the P a c i f i c Campaign.
4
*h.e critical s i t u a t i o n which, the P h i l i p p i n e Gov e r n m e n t faces
as the^ I s l a n d s a c h ieve i n d e p e n d e n t status as a m e m b e r of the
c o m m u n i t y o f na t i o n s is not one w h i c h could h a v e b e e n f o r e s e e n
at the time that the U n i t e d States Congress, twelve y e ars ago,
enacted the T i d i n g s - M c D u f f i e Act.
At that time and subsequently,
p r i o r to the o u t b r e a k o f the w a r w i t h Japan, p r o v i s i o n h a d b e e n
m a d e for a p r o g r a m w h i c h w o u l d h a v e e n a b l e d the P h i l i p p i n e
R e p u b l i c to stand on its own feet e c o n o m i c a l l y as w ell as p o l i
t i c a l l y w h e n i n d e p e n d e n c e was a c h ieved.
The w a r has c o m p l e t e l y
that s i t u a t i o n a nd it is cl e a r l y our o b l i g a t i o n to p r o
vide the h e l p w h i c h is n ow n e e d e d to ac h i e v e the o b j e c t i v e s
w h i c h C o n g r e s s lai d d o w n in o u r basic l egislation.
vle^
all the foregoing,
F e d u c i n 8 the total
$-100,000,000 to $ 7 5 , 0 0 0 , 0 0 0 «
oOo
I u r g e that C o n g r e s s enact
amount a u t h o r i z e d fro m
THSASUET DEPARTMENT
Washington
m m m im mzum,
m®m service
Wednesday, July 21+» 191*6»
The Treasury today announced the subscription figures and the basis
of allotment for the offering of 7/8 percent Treasury Certificates of
Indebtedness of Series G-191+7 In exchange for Certificates of Indebtedness
of Series F-19U6* maturing August 1, 191+6.
Reports received from the Federal Reserve Banks show that subscrip
tions aggregate $2,307,000,000.
Subscriptions in amounts up to and
including $25 ,000, totaling about $1+0,000,000, «ere allotted in full.
Subscriptions in amounts over $25,000 sere allotted ^2- percent on a
straight percentage basis, but not less than $25,000 to any one sub
scriber, with adjustments, where necessary, to the next highest $1,000.
Details as to subscriptions and allotments mill be announced when
final reports are received from the Federal Reserve Banks.
TREASURY DEPARTMENT
Washington
F O R I M E D I A T E RELEASE,
W e d n e s d a y , J uly 24, 1946.
P r ess S e r v i c e
No. S.-29
T he T r e a s u r y t o d a y a n n o u n c e d the s u b s c r i p t i o n f i g u r e s a n d
the basis
of a l l o t m e n t f o r the
o f f e r i n g of 7/8 p e r c e n t T r e a s u r y
Certificates
of I n d e b t e d n e s s
of Series'G--1947 .in e x c h a n g e f o r
Certificates
of I n d e b t e d n e s s 'of S e ries F-1946,
m a t u r i n g A u g u s t 1,
1946é
R e p o r t s r e c e i v e d f r o m t h e F e d e r a l R e s e r v e Banks
s u b s c r i p t i o n s a g g r e g a t e $>2,307,000,000.
s h o w that
Subscriptions
in
a m o u n t s up to a n d i n c l u d i n g $ 2 5 ,000 , t o t a l i n g a b o u t $ 4 0 , 0 0 0 , 0 0 0 ,
w e r e a l l o t t e d A n full.
Subscriptions
in a m o u n t s
over § 2 5 , 0 0 0
w e r e a l l o t t e d 52 p e r c e n t on a s t r a i g h t p e r c e n t a g e basis,
n o t less
than $ 2 5 ,0 0 0
w h e r e necessary,
to a n y one subscriber,
but
w i t h adjus t m e n t s ,
t o the n e x t h i g h e s t $1,000.
D e t a i l s as to s u b s c r i p t i o n s a n d a l l o t m e n t s w i l l be a n n o u n c e d
w h e n f i n a l r e p o r t s a r e r e c e i v e d f r o m the F e d e r a l R e s e r v e B a n k s •
oOo
a s 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. Ul8, 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.
H
m M
-
2
»,*. | j
|| ■<
h h b h
-
Immediately after the closing hour, tenders will be opened at the Federal
Reserve Banks and Branches, following which public announcement will be made
by the Secretary of the Treasury of the amount and price range of accepted
bids.
Those submitting tenders will be advised of the acceptance or rejection
thereof.
The Secretary of the Treasury expressly reserves the right to accept
or reject any or all tenders, in whole or in part, and his action in any such
respect shall be final.
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
August 1« 1 9 U 6 ______ •
~TSs5c
The income derived from Treasury bills, r: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 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 ll£ of
the Revenue Act of I 9I4S-J 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, July
19U6_________ ,
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
w
—
on a discount basis under competitive and fixed-price bidding as hereinafter
m
provided.
>
The bills of this series will be dated
August 1, 19lUS______ and
apti
1 . 19li6__ 5 when the face amount will be payable with
vri.ll mature
Octobe
out interest.
They tyill be issued in bearer form only, and in denominations
Tenders will be received at Federal Reserve Banks and Branches up to the
closing hour, two o ’clock p.m., Eastern Standard time,
Monday. July 29. 19ii6
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., 99.92£.
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, July 26, 1946____________
Press S e r vice
No. S-30
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 9 1 - d a y
T r e a s u r y bills, to be issued on a discount, basis u n d e r c o m p e t i
tive and f i x e d - p r i c e b i d d i n g as h e r e i n a f t e r provided.
The
bills of this series will be d a t e d A u g u s t 1 , 1946, and will
m a t u r e O c t o b e r 31, 1946, w h e n the face a m o u n t will be p a y a b l e
without interest.
T h e y wil l 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 ,0 0 0 , £ 5 ,.0 0 0 , § 1 0 *0 0 0 , § 1 0 0 ,0 0 0 ,
§500,000, a n d 4^1,000,000 (ma t u r i t y value) .
T e n d e r s will be rec e i v e d at Federal Re s e r v e B a nks and
Br 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
Standard time, Monday, Jul y 29, 1946,
T e n d e r s w i l l not be
r e c eived at the T r e a s u r y Depa r t m e n t , ’
W ashington.'
E a c h tender
must be f or an even m u l t i p l e of § 1 ,0 0 0 , and the price o f f e r e d
must be e x p r e s s e d on the b a s i s of 1 0 0 , 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 f o rms and f o r
w a r d e d in the special e n v e l o p e s w h i c h w i l l be s u p p l i e d by
Federal R e s e r v e B a n k s or B l 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 received w i t h o u t d e p o s i t f r o m incorporated
b a n k s and trust c o m p anies 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 s ecurities.
Te 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 m e n t of 2 p e r c e n t 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 o f p a y m e n t b y a n i n c o r p o r a t e d b a n k or
trust company.
I m m e d i a t e l y after the c l o s i n g hour, tenders will be opened
at the Federal R e s erve 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 w i l l be mad e b y the S e c r e t a r y o f the T r e a s u r y
of the a m o u n t and p r ice range o f a c c e p t e d bids.
Those s u b m i t
ting 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 o r r e j e c t i o n
thereof.
The S e c r e t a r y o f the T r e a s u r y e x p r e s s l y reserves the
right to a c c e p t or reject any o r all tenders, in whole or in
part, and h i s a c t i o n in a ny suc h r e s p e c t 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
oe a c c e p t e d in full.
Pa y m e n t 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 mad e or c o m p l e t e d at the Federal Reserve
Bank in c a s h or o t h e r i m m e d i a t e l y a v a i l a b l e funds on A u g u s t . 1 ,
1946.
.
(O v e r )
2
'
-
The income d e r i v e d from T r e a s u r y bills, w h e t h e r interest
or gain from the sale or o t h e r d i s p o s i t i o n of the bills,, shall
not h a v e an y exemption, as such,- a n d loss f r o m the sale or
o t h e r d i s p o s i t i o n of T r e a s u r y b i l l s 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 t o ’ estate, inheritance,
gift, or o t her excise taxes, w h e t h e r Federal o r State, but
shall be e x empt from-all t a x a t i o n n o w or h e r e a f t e r im p o s e d on
the pri n c i p a l or interest t h e r e o f by any State, or any of the
p o s s e s s i o n s of the U n i t e d States, or b y any local taxing a u t h o
rity.
For p u 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 sol d 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 Sections 42 and 117 (a)( 1 )
of the Internal Revenue Code, as a m e n d e d by S e c t i o n 115 o f the
R e v e n u e Act 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 bills
issued h e r e u n d e r are sold shall not be c o n s i d e r e d to accrue
u n 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 nd stich bi-ll-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 cordingly, the o w ner of T r e a s u r y b i l l s (other than
life i n s urance c-ompanies) issued h e r e u n d e r n e e d include in his
income tax r e t u r n only the d i f f e r e n c e b e t w e e n the price pai d
for s u c h bills, w h e t h e r on or i g i n a l issue o r on subsequent p u r
chase, and the amount a c t u a l l y 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 d u r i n g the t a xable 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 gain or loss.
T r e a s u r y D e p a r t m e n t C i r c u l a r No, 418, as amended, a nd this
notice,' p r e s 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 con d i t i o n s of their issue. . C o pies of the c i r c u l a r m ay be
obtained' fro m a ny Federal Reserve B a n k or Branch,
oOo
DOMESTIC COINAGE EXECUTED, BI MINTS, DURING THE FISCAL TEAR 19*46.
Denomination
. Philadelphia
. San Francisco .
!
:
SILVER
Denver
:
, Total Value
. Total Pieces
1
i
Half dollars - - -----------
: $1*,275,000.00 s $14,098,000.00 :$2,911,800.00 ; $11,281*,800.00 !
Quarter dollars---------- --------
î
13,1425,000.00
Dimes------- ----------- *- •
---- : 16,691,000.00
î
2,098,000.00
; 1,801,000.00
: I4,21*7,000.00 •.
17,32*4,000.00
MINOR
Five-cent pieces---------- - - - :
Qne-cent pieces -
\
:
-- - :-----
:
7,003,350.00
Total domesticcoinage---------
:
l4,52i*,380.00
.. mmnmJ»,■■,—
5$,305,l$0o00 *
14,383,650.00 :
m',Vmm ■'r— «■ -,,■■■■■■■'■■Î
148,180,990.00 : ll*,826,650.00
^
î 1*4,995,$30.00
266,963,500
358,829,100
Î
: 3,028,950.00 : 2,099,000.00 s 12,131,300.00 :
: 2,1*25,380.00 :
1
î
i
6,786,6140.00:■ 1,3514,700.00
Tot
tal m i n o r ----- ------ - - - - : 13,789,990.00
\
i
69,296,000
î
5,?56,350qOO ; 26,696,350.00 :
Total silver----- ------------- ? 3*4,391,000.00 : 10,to,000.00 :10,1*71,l50o00 ?
22,569,600
2142,626,000
10,566,720.00 : 1,056,672,000
: 22,698,020.00 : 1,299,298,000
, m>m„.m— ■„■■Ti",■„■■■■■,
i
.■'■■■' ■■■»'.-»L.—
:
■
—1—■■
78,003,170.00 : 1,658,127,100
PRESS RELEASE 1946
Page 2
Coinage of the war-time nickel consisting of 35$ silver,
56$ copper and 9$ manganese has been discontinued. Since January 1,
1946, the Mints have been producing the pre-war 5-cent piece com
posed of 25$ nickel and 75$ copper.
Expansion started at the Denver Mint in the last fiscal
year will double coinage capacity at that Mint.
The Mint manufactured 1,198,811,798 pieces of coinage for
friendly Governments, during the fiscal year. Countries for which
coins were made included: Colombia, Cuba, El Salvador, Ethiopia,
Netherlands, Philippine Islands, Saudi-Arabia and Venezuela.
The following table shows domestic coinage executed, by
Mints, during the Fiscal Year 1946:
TREASURY DEPARTMENT
Washington
FOR M
R
RELEASE
1946»
Tress Service
No. .S'—-? /
Operations at United States Mints during the 1946 fiscal
year, ended June 30, showed a levelling off¿¿S£ei^the peak for the
year 1945. During the previous five war years, the Mints produced
a total of over ten billion domestic coins.
The total number of pieces struck during the 1946 fiscal
year was 1,658,127,100 with a value of $78,003,170. The 1945 com
parable period saw a record number of pieces struck 2,646,134,101.
Race value of 1945 fiscal year coinage was $124,754,925.25.
Nellie Tayloe Ross, Director of the Mint, said that a
renewed heavy demand upon the Treasury for coins, however, has re
quired the Mints again to accelerate production, particularly at
Denver and at Philadelphia where the Mint is now operating on a
round-the-clock basis. She said that all indications point to an
upswing in coinage needs in the immediate months ahead. The call
for coins is governed by the volume of business.
The Mint provided approximately one million decorations
during the past fiscal year for the Army, Navy, Coast Guard and
Marines. Record breaking medal orders placed with the Mint to meet
citations and awards for service personnel will keep this activity
at capacity operations for many months. Medals executed during the
year for sale to the public through the Philadelphia Mint included
the Franklin D. Roosevelt Memorial Medal and the Truman Medal of
the Presidential Series.
Gold medals which the Congress recently authorized, honor
ing the General of the Army, George Catlett Marshall, and Fleet
Admiral Ernest Joseph King, will be produced by the Mint during the
forthcoming year.
Production of the new Roosevelt 10-cent piece was inaugu
rated during 1946. While relatively few have appeared in circulation
for the reason that many persons are holding on to them, believing
they are f,rarett, enough have been released to date to supply one to
every man, woman and child in the Country, and production of this
coin is being continued at a rapid pace.
TREASURY DEPARTMENT
Washington
FOR RELEASE, M O R N I N G N E W S P A P E R S ,
Tuesd ay, July 30, 1946.__________
Press S e r v i c e
No. S-31
O p e r a t i o n s at U n i t e d S t ates M i n t s d u r i n g the 1946 fiscal
year, e n d e d June 30, showed a l e v e l l i n g o ff f r o m the p e a k for
the y e a r 1945.
D u r i n g the pre v i o u s five w a r years, the Mints
p r o d u c e d a total o f over ten b i l l i o n d o m e s t i c coins.
T h e total n u m b e r of p i e c e s s t r u c k d u r i n g the 1946 fiscal
y e a r was 1 , 6 5 8 , 1 2 7 , 1 0 0 w i t h a value o f $ 7 8 , 0 0 3 , 1 7 0 .
The 1945
c o m p arable p e r i o d saw a r e c o r d n u m b e r of pieces struck,
2,646,134,101.
Face v a lue of 1945 f i scal y e a r c o i nage was
$124,754,925.25.
N e l l i e T a y l o e Ross, D i r e c t o r of the Mint, said that a r e
n e w e d h e a v y d e m a n d u p o n the T r e a s u r y for coins, however, has
re q u i r e d the M i nts a g a i n to a c c e l e r a t e p r o d uction, p a r t i c u l a r l y
at D e n v e r and at P h i l a d e l p h i a w h e r e the Mint is n o w o p e r a t i n g .
on a r o u n d - t h e - c l o c k basis.
She said that all i n d i c ations
point to an u p s w i n g in coinage n e e d s in the imm e d i a t e m o n t h s
ahead.
The call for coins is g o v e r n e d by the volume of b u s i
ness.
The Mint p r o v i d e d a p p r o x i m a t e l y one m i l l i o n d e c o r a t i o n s
d u r i n g the past fiscal y e a r for the Army, Navy, Coast G u a r d
a n d Marines.
R e c o r d b r e a k i n g m e d a l orders p l a c e d w i t h the
Mint to meet c i t a t i o n s and awards for service p e r s o n n e l will
k e e p this a c t i v i t y at c a p a c i t y o p e r a t i o n s for m a n y months.
M e d a l s e x e c u t e d d u r i n g the y e a r for sale to the public t h r o u g h
the P h i l a d e l p h i a Min t i n c l u d e d the F r a n k l i n D. R o o s e v e l t M e
m o r i a l M e d a l and thé T r u m a n M e d a l of the P r e s i d e n t i a l Series.
Gold m e d a l s w h i c h the C o n g r e s s r e c e n t l y auth o r i z e d , h o n o r
ing the General of the Army, G e o r g e Ca t l e t t Marshall, and Fleet
A d m i r a l E r n e s t J o s e p h King, wil l be p r o d u c e d by the M int d u r i n g
the f o r t h c o m i n g year.
P r o d u c t i o n of the n e w R o o s e v e l t 1 0 - c e n t piece was i n a u g u
r a t e d d u r i n g 1946.
W h i l e r e l a t i v e l y few h a v e
a p p e a r e d in c i r
culation f o r the r e a s o n that m a n y p e r s o n s are h o l d i n g on to
them, b e l i e v i n g the y are ,fr a r e n , e n o u g h h a v e b e e n r e l e a s e d to
date to s u pply one to e v e r y man, w o m a n a nd c h ild in t he c o u n t r y
and p r o d u c t i o n o f this coin is b e i n g c o n t i n u e d at a r a p i d pace*
C o i n a g e of the w a r - t i m e n i c k e l c o n s i s t i n g of 35$ silver,
56$ copper and 9$ m a n g a n e s e has b e e n d i s c o n t i n u e d *
Since
J a n u a r y 1, 1946, the Mints hav e b e e n p r o d u c i n g the p r e - w a r
5-cent piece c o m p o s e d of 25$ n i c k e l and 75$ copper*
E x p a n s i o n s t a rted at the D e n v e r Mint in the last
y e a r wil l d o u b l e coinage c a p a c i t y at that Mint.
fiscal
The Mint m a n u f a c t u r e d 1 , 1 9 8 , 8 1 1 , 7 9 8 p i e c e s of c o i nage for
f r i e n d l y G o v e r n m e n t s , d u r i n g the fiscal year*
C o u n t r i e s for
w h i c h coins w e r e m a d e included:
Colombia, Cuba, El Salvador,
E t h i opia, N e t h e r l a n d s , P h i l i p p i n e Islands, S a u d i - A r a b i a and
Venezuela *
The f o l l o w i n g table shows d o m e s t i c
Mints, d u r i n g the fiscal y e a r 1946:
coinage
executed,
by
\
Page 3
DOMESTIC COINAGE EXECUTED, BY' MINTS, DURI1TG- THE FISCAL YEAR I9U 6
Denomination
r Philadelphia
: San Francisco :
Denver
:
Total Value
*- Total Pieces
SILVER
Half dollars - - -
----
:
$U,275 ,000.00 : $U,098 ,000.00
Quarter dollars- -
----
:
13 >^25 »0 0 0 .00 :
2 ,092 ,000.00 ;
Dimes
----
:
16,691,000.00t
- - - - - -
Total silver -
---- *
: $2 ,911 ,800.00
: $ 11 ,2 SU,S00.00
:
22 ,569,600
17 ,32^,000.00
:
69 ,296,000
U,2*17,000.00 : 5,758,350.00 : 26 ,696 ,350*00 r
266 ,963,500
31!-,391,000.00: 10,^3,000.00 r 10 ,U71 ,150*00 : 55,305,150.00 :
358 ,829,100
1 ,801 ,000.00
î
MI FOR
Five-cent pieces - - - - - - One-cent T)ieces - - - - - - Total minor
- - - - - - -
:
;
7,003,350.00 :
6 ,786 ,6 *40.00 ;
:
13,789,990.00 j
3,028,950.00 r
i ,35^,7o o .o o :
2,099,000.00
2 ,^25 ,380.00
:
i
12,131,300.00 t
10 ,566 ,720.00 :
. 2*42,626,000
1 ,056 ,672,000
^-,383 ,650.00
U, 52*4,380.00
:
22,698,020.00 r
1,299,298,000
Dotal domestic coinage - - : US,ISO,990.00 • lU,£ 26 ,650.00 : ÌU,995 ,530 .OO :
78 ,003 ,170.00
t
1 ,658 ,127,100
TREASÜHÏ DEPARTMENT
Washington
FOR IMMEDIATE RELEASE,
Monday j July 29* 191*6.
Fress Servies
3 2^
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 G—19l*7* Subscriptions for
amounts up to and including $25,000 were allotted in full and amounted to
$39,27k,000.
Subscriptions and allotments were divided among the several Federal
Reserve Districts and the Treasury as follows*
Federal Reserve
District
Total Subscriptions Received
Total Subscript
tions Allotted
Boston
Hew Tork
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Treasury
|
69,290,030
1,1*1*9,591,000
1*2,073,000
69,982,000
29,019,000
38,781*,000
181*,696,000
5o,3S6,ooo
5 i,l* 5 i,o o o
j 92,156,000
1*1*,581,000
1 8 1 , 9 1 1 , coo
3,678,000
1
12,307,568,000
11,223,1*96,000
TOTAL
36,505,ooo
755,316,000
22,602,000
38,151*,000
16,350,000
21,1*26,000
100,879, COO
28,659,000
30,1*1*2,000
51,618,000
21*,161*,000
95,1*57,000
1,921*,000
TREASURY DEPARTMENT
Washington
E O R II.1.IEDIATE RELEASE,
M o n d a y t J u l y 29, 1 9 4 6 ,
Press S e r v i c e
N o . S-32
Th e S e c r e t a r y of the T r e a s u r y t o d a y a n n o u n c e d the f i n a l
s u b s c r i p t i o n a n d a l l o t m e n t fi g u r e s w i t h r e s p e c t to t h e c u r rent
o f f e r i n g 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
of Series G— 1947»
of I n d e b t e d n e s s
S u b s c r i p t i o n s f o r a m o u n t s u p to a n d i n
c l u d i n g $ 2 5 , 0 0 0 w e r e a l l o t t e d in f ull a n d a m o u n t e d to $ 3 9 ,2 7 4 ,000 .
Subscriptions and allotments were
d i v i d e d a m o n g th e sev-.
eral P e d e r a l R e s e r v e D i s t r i c t s and t h e T r e a s u r y as follows;
Pederal Reserve
District
Total Subscrip
tions Received
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
'St. Louis
Minneapolis
K a nsas C i t y
Dallas
S an P r a n c i s c o
Treasury
69.290.000
1,449,591,000
42.073.000
69.982.000
29.019.000
38.784.000
184,696,000
50.356.000
51.451.000
$
36,505,000
755 3 1 6 , 0 0 0
22,602,000
38.154.000
16.350.000
,,.
2 1 426.000
100 8 7 9 ,0 0 0
28 6 5 9 ,0 0 0
92. 156.000
44, 581,000
30.442.000
51.618.000
24.164.000
181 911,000
95.457.000
3,678.000
1-924.000
$2,307,568,000
$1,223,496,000
,
TOTAL
T o t a l Subscrip
tions A l l o t t e d
oOo
TKEASüEï department
Washington
mmtwot mmmmm
rm r el ea s e ,
Tuesday, Jaly
Press Service
?
30»
1?%6.
< / - <3\3
The Secretary of the Treasuxy announced last evening that the tenders for
$1,300,000,000, or thereabouts, of 91-day Treasury bills to be dated August 1 and to
mature October 31, 19i*6, ^lich were offered on July 26, 19%6, were opened at the Federal
Reserve Banks on July 29*
The details of this issue are as follows:
Total applied for - $1,796,1?%,OCX)
Total accepted
- 1>30£, 837,000
Average price
(includes $33,17^,000 entered on a fixed-price
basis at 99*90$ and accepted in full)
- 99*90$/ Equivalent rate of discount approx. 0.376* per annum
Range of accepted competitive bids:
High
leer
- 99.90? Equivalent rate of discount approx. 0.368* per annum
~ 99*90$
9
*
n
n
m
0.376* «
»
(71 percent of the amount bid for at the low price was accepted)
Federal Reserve
District
Total
Applied for
Total
Accepted
Boston
Hew Xoaric
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
$
lit,591,000
1,350,129,000
16,235,000
5 ,580,ooo
9,200,000
8,910,000
287,305,000
23,996,000
9,583,000
11,010,000
5,705,000
53,950,000
|
*l,796,17b,000
$1,305,837,000
TOTAL
10,821,000
971*055,000
I2,l55,ooo
5,1«o6,ooo
8,620,000
8,620,000
205,1*27,000
17,761,000
7,503,000
9,618,000
5,531,000
1*0,320*000
TREASURY DEPARTMENT
Washington
F O R RELEASE, MORNING- NEWSPAPERS,
Tuesday, Jul y 30, 1946_________ _
P r ess S e r v i c e
No. S-33
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 f o r $ 1 , 3 0 0 , 0 0 0 , 0 0 0 , or t hereabouts, 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 u g u s t 1 a n d to m a t u r e O c t o b e r 31»
1946, w h i c h w e r e o f f e r e d on Ju3.y 26, 1946, wer 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 July 29.
Th e d e t ails
Total applied for
Total a c c e p t e d
Average price
Range
-
of this
issue are as fo3.1ows:
#1,796,174,000
1>305,837,000
99.905/
(includes # 3 3 ,1 7 5 ,0 0 0 e n t e r e d
on a f i x e d - p r i c e basis at
99.905 a n d a c c e p t e d in full)
E q u i v a l e n t r a t e of d i s c o u n t approx.
0.376/ per annum
of a c c e p t e d c o m p e t i t i v e bids:
H i g h - 99.90/
L o w — 99.9 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.
"
«
«
t!
it
#
0.368/ per annum
0,376/
M
n
(71 p e r c e n t of the a m o u n t b id f o r at the low p r i c e was acc e p t e d )
Federal-Reserve
District
Total
Applied for
Boston
New York
Philadelphia
Cleveland
Richmond
At3.anta
Chicago
St. Louis
Minneapolis
K a nsas C i t y
Dallas
San F r a n c i s c o
TOTAL
Total
Accepted
#
14,591,000
-1,350,129,000
16,215,000
5.580.000
9.200.000
8.910.000
287,305,000
23.996.000
9.583.000
11.010.000
5.705.000
53,950,000
10,821,000
974,055,000
12.155.000
5.406.000
8.620.000
8,620,000
• 2 0 5 , 427,000
17.761.000
7.503.000
9.618.000
5.531.000
40.320.000
#1,796,174,000
$ 1 , 3 0 5 ,8 3 7 ,0 0 0
0O0
treasury department
Washington
FOR IMMEDIATE RELEASE
Tuesday, July 30, 1946
Press Service
No « S-
Secretary Snyder today announced the appointment of William W6 Parsons
as his Administrative Assistant» Mr» Parsons succeeds Paul L« Kelley, who
lift the Treasury to become Administrative Assistant to Chief Justice Vinson»
During Mr» Kelley,s tenure as Administrative 4*«istant to the Secretary
of the Treasury, Mr» Parsons served under him as administrative Jfechni
The new Administrative Assistant is 34 years of age and a native of
Los Angeles» He graduated from the University of Southern California in
1935 with the degree of bachelor of science in business administration,
and received a master1® degree in public administration In / 93 7 from tJL<
Maxwell School of K B S Citizenship of Syracuse University in New York»
Mus^Paroons had won a fellowship nt Syrnnincr-TTrilvnrBlty-upon Ills ¿LiadUlitribB
EPrmsr-thfi D aivefiT ty o f Smi»Vi«w£a,mVvi»Tntt1t
Mr» Parsons1 entire career has been concerned witlyadministrative
problems and policies» He was -attached, for- four yeams-ta/the Public
AdministratiaA Service of Chicago, as a consultant to puolic officials
Following this work he was identified for several months with ths
Department of Education of the State of New York, handling matters of
administration and finance»
He joined the Bureau of the Budget in Washington in May, 1941,
being assigned as principal gbidget Examiner with responsibility for
handling estimates and related matters of the Treasury and the General
Accounting Office» He remained at the Budget Bureau until December, 1944,
when he became Executive Officer of the Treasury Department's
procurement llivisiono In June, 1945, he was transferred to the O f f i c e of the
Secretary of the Treasury, as an aide to the Secretary's Administrative
Assistant»
Mr» and Mrs» Parsons and their three sons live at
Silver Spring, Md*
TREASURY DEPARTMENT
Washington
FOR I M M E D I A T E R E L E A S E
Tuesday, July 50, 1946
Press Se r v i c e
No. S-34
S e c r e t a r y S n y d e r tod ay a n n o u n c e d the a p p o i n t m e n t of
W i l l i a m W. Parsons as his A d m i n i s t r a t i v e Ass i s t a n t ,
Mr, Parsons
succeeds Paul L. Kelley, w h o leaves the T r e a s u r y to b e come
A d m i n i s t r a t i v e A s s i s t a n t to C h i e f J u s tice Vinson.
D u r i n g Mr.
K e l l e y ’s tenure as A d m i n i s t r a t i v e A s s i s t a n t to the S e c r e t a r y of
the T r e asury, Mr. Parsons served u n d e r h i m as T e c h n i c a l A s s i s t
ant .
T he n e w A d m i n i s t r a t i v e A s s i s t a n t is 34 y e ars of age and a
n a t i v e o f L o s Angeles,
Ke g r a d u a t e d f r o m the U n i v e r s i t y of
S o u t h e r n C a l i f o r n i a in 1935 w i t h the d e g r e e of b a c h e l o r of
science in b u s i n e s s a d m i n i s t r a t i o n , and r e c e i v e d a m a s t e r ’s
d e g r e e in p u b l i c a d m i n i s t r a t i o n in 1937 f r o m the Ma x w e l l
S c hool of u i t i z e n s h i p of S y r a c u s e U n i v e r s i t y in N e w York.
Mr. P a r s o n s ’ entire c a r e e r has b e e n c o n c e r n e d w i t h a d m i n
istrative pr o b l e m s and policies.
He was a s t aff m e m b e r o f the
Public A d m i n i s t r a t i o n S e r v i c e of Chicago, as a c o n s u l t a n t to
p u b l i c officials for four years.
F o l l o w i n g this w o r k he was
i d e n t i f i e d for several m o n t h s w i t h the D e p a r t m e n t of E d u c a t i o n
o f the State of Newr York, h a n d l i n g m a t t e r s of a d m i n i s t r a t i o n
and finance.
He j o ined the B u r e a u of the B u d g e t in W a s h i n g t o n In May,
1941, b e i n g a s s i g n e d as P r i n c i p a l B u d g e t E x a m i n e r w i t h r e s p o n
s i b ility for h a n d l i n g estimates and r e l a t e d m a t t e r s of the
T r e a s u r y and the G e n e r a l A c c o u n t i n g Office.
He r e m a i n e d at
the B u d g e t B u r e a u u n t i l December, 1944, w h e n he b e c a m e
E x e c u t i v e O f f i c e r of the T r e a s u r y D e p a r t m e n t ' s P r o c u r e m e n t
Division.
In June, 1945, he w a s t r a n s f e r r e d to the O f f i c e of
the S e c r e t a r y of the Treasury, as an aide to the S e c r e t a r y ’s
A d m i n i s t r a t i v e A s s i stant.
Mr. and Mrs* Parsons and t h e i r three sons
L e x i n g t o n Drive, S i l v e r Spring, Maryland.
oOo
live at 123
o\/ A
TREASURY DEPARTMENT
WASHINGTON
FOR RELEASE, MORNING NEWSPAPERS,
PRESS SERVICE
No.
isecret&zy<^MIi»AI6p«a«iM|F today announced that he is
prepared to make sales of silver at
*{( eents per fine troy
ounoe for manufacturing uses as authorised by the Act of July 3/ ,
1946y.
—
i| 70th Congress^
The United States Mints at Philadelphia, Pennsylvania,
Denver, Colorado, and San Francisco, California, and the
United States Assay Offices at New York, Heir York, and Seattle,
Washington, have been instructed as to the procedure to be
followed in making sales of Treasury silver* }All prospective
— <-
L
purchasers of silver are requested to camsrunicate directly with
the nearest Mint or Assay Office with respect to applications
for the purchase of Treasury silver*
¿2
0
TREASURY DEPARTMENT
Washington
FOR IMMEDIATE RELEASE
W e d n e s d a y , July 51, 1946
S e c r e t a r y Snyder
to m a k e sales
Press S e r vice
No. S-35
today a n n o u n c e d that he
of silver
at 91 cents p e r fine troy ounce
m a n u f a c t u r i n g use s as a u t h o r i z e d b y the
The U n i t e d States M i n t s
Denver,
Colorado,
followed
hav e bee n
i n s t r u c t e d as
in m a k i n g sales
a n d the
N. Y . , a nd Seattlej
to the p r o cedure
to be
o f T r e a s u r y silver.
All p r o s p e c t i v e p u r c h a s e r s
of s i l v e r are
c o m m u n i c a t e d i r e c t l y w i t h the n e a r e s t M i n t
with respect
1946
P ennsylvania,
C alifornia,
at N e w York,
for
Act of J uly 31,
at Phila d e l p h i a ,
and S a n Francisco*
U n i t e d Stat e s A s s a y Of f i c e s
Wash i n g t o n ,
is p r e p a r e d
to a p p l i c a t i o n s
requested
to
or A s s a y Office
for the p u r c h a s e of T r e a s u r y
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.
ALPHA
-
2
-
Immediately after the closing hour, tenders .will be opened at the Federal
He serve 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 Trill 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 Trill 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
August ^
8.
19U6_____
•
—
The income derived from Treasury bills, rrhether 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 ll£ of
the Revenue Act of I 9I4.I , the amount of discount at which bills issued here
under are sold shall not be considered to accrue until such bills shall be
».
Kmm
TREASURY DEPARTIRENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Friday, August 2, 19U6_________.
The Secretary of the Treasury, by this public notice, invites tenders for
$1,100,000,000
3 or thereabouts, of
91 -day Treasury bills, to be issued
-
on a discount basis under competitive and fixed-price bidding as nereinafter
provided.
and
The bills of this series will be dated
will mature
out interest.
November 7. 19U6
, when the face amount trill be payable with-
They will be issued in bearer form only, and in denominations
Tenders bill be received at Federal Reserve Banks and Branches up to the
closing hour, two o ’clock p.m., Eastern Standard time,
Monday« August 5« 19U6
mk.
Tenders bill 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, MORNING NEWSPAPERS,,
Friday, August 2, 1946»
Press Service
S o y S-36
The Secretary of the Treasury, by this public notice,
invites tenders for $1,300,000,000, or thereabouts, of 91day Treasury bills, to be issued on a discount basis under
competitive and fixed-price bidding as hereinafter provided.
The bills of this series will be dated August 8, 1946$ and
will mature November 7, 1946, when the face amount will be
payable without interest,. They will be issued in-bearer
form only, and in denominations of $1,000, $5,000, $10,000,
$100,000, $ 500 ,000, and $1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and
Branches up to the closing hour, two o fclock p.m., Eastern
Standard time,. Monday, August 5> 1946,
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 incorpo
rated banks and trust companies and from responsible and
recognized dealers in investment securities.
Tenders from
others must be accompanied by payment of 2 percent of the
face amount of Treasury bills applied for, unless the tenders
are accompanied by an express guaranty of payment by an in
corporated bank or trust company.•
Immediately after the closing h o u r , ■tenders■will be '
opened at the Federal Reserve Banks and Branches, following
which public announcement will be made by the Secretary of
the Treasury of the amount and price range of accepted bids.*
Those submitting tenders will be advised of the acceptance
or rejection thereof. , The Secretary of the Treasury express
ly 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 fixedprice 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 August 8, 1946.
(O v e r )
2
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 b-e subject to, estate, inheritance,
gift, or other excise taxes, wh'e their federal or State, but
shall be ex'empt 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 auth
ority. 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 S-eétions 42 and
117 (a) (1) of the Internal Revenue Code, as amended by
Section 115* of the Revenue Act of 1941, the amount of discount
at which bills issued hereunder are sold shall not be con
sidered to accrue until such bills shall be sold, redeemed or
otherwise disposèd of, and such bills are excluded from con
sideration 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 lo s s .
Treasury Department Circular Do. 418, as amended, and this
notice, prescribe the_ terms of the Treasury bills and govern
the conditions of their issue.
Copies of the circular may be
obtained from any federal Reserve Bank or Branch.
oOo *
4
typewriter, a stapling machine,
ink eradicator,
inks,
stolen ration books and identification cards, together
with identification photographs of himself and his wife
to be pasted on the cards«
He was sentenced to 2 to 4
years in staters prison, $nd his wife, Ruby, to 1 to
lì
years•
In its job of protecting the President, the Service
worked out security measures for Mr. Truman’s visit to
Potsdam, and for his journeys to other points outside
Washington.
Most.significant of these protective activ-
ities was the arrest and confinement of
A (/self-proclaimed
"executioner” , on charges of threatening the life of the
Chief Executive.
The
bond for grand jury action,
, who is being held under
is said by the Service to
have a long criminal record, as well as having been hos
pitalized in a mental institution three times.
In another phase of security work, the Uniformed Force
of the Secret Service protected money,
stamps, bonds and
other securities worth $300,000,000,000 in production and
storage in Washington and Chicago, and about $250,000,000,000
in transit.
oOo
3
Kratenstein claimed, he found the bills in an envelope
at Ebbets ^ield when he went to watch the Brooklyn Dodgers
play the Pittsburgh Pirates.
The alibi exploded when
investigation revealed that the dodgers and Pirates did
not play that"week.
There were nearly 30,000 forged checks received for
investigation during the year, compared with 16,500 in 1945;
bond forgery cases jumped from 2,500 to 12,000«
Nearly 700 juveniles were among 2,134 persons arrested
by the Service for forgery.
In New York City, a youthful
forgery ring that had left a trail of checks in groceries,
delicatessens, cashing agencies, and department stores for
three months was broken with arrest of six boys ranging in
age from 13 to 16 years.
Without offering or being asked
for identification they cashed checks for mustering-out pay,
income tax refunds, and social security benefits.
Another investigation in New York City unearthed a
«Pagin’’ in reverse.
Three boys, the oldest 16, trained and
used an adult man to pass Government checks which the youths
stole and forged.
Some 125 checks were handled by the gang.
Secret Service Agents and Chicago police arrested a man
and wife for wholesale bond forgeries, totalling some
^16,000.
They robbed private homes in Indiana, Ohio,
Michigan, Kentucky, Kansas, Florida and ^labama. The husband,
Paul Hisner, carried a iTforgery ki t ” , including a portable
2
Secret Service reports for the year ended June 30,
released by Elmer L. Irey, Coordinator of Enforcement,
showed a moderate upturn in seizures of bogus bills and
coins, the first increase in several years, due princi
pally to the importation, by returning service personnel
and travelers, or in currency shipments, of a trickle of
bogus bills of foreign origin.
In nearly every case, these
bills were of types known to the Service before the war, and
were of poor workmanship.
Most such counterfeits were
seized promptly upon presentation to United States banks.
Pace value of bogus bills and coins seized during the
year was 174,263, against f 68,324 in 1945.
Of these totals
only $39,171 represented losses to storekeepers and others
in the United States, compared with $28,840 in 1945.
While^important counterfeiting activity within the
United States came to the attention of the Service during
the year, one rather spectacular case Involving old notes
of the notorious Victor (Count) Lustig gang was closed.
Lustig now is serving a 20-year sentence at Alcatraz prison.
David Kratenstein, 34 years old, and George Van Orden, 45
years old, of New York City, were sentenced to two years and
15 months imprisonment, respectively,
old counterfeits.
for trafficking in these
Seventeen $100 notes were involved.
The
case had such fiction thriller elements as undercover work,
attempted bribery of the Treasury agents, and a "listening
post" assignment to an Agent in the trunk of an automobile.
MR. FOLEY;
Mr. Shaeffer brought in these two press releases
for you to go over*
this week.
He wants to get them out
^ y
/
A
0
V(
A ,
is Savings Bonds
D.M.W.
; similar depre-
c , v a - r
UHOi„I10
—
*-**-*-*
GOVernment checks
continued to increase, James J, Maloney, Acting Chief of
the United States Secret Service,reported today.
Mr. Maloney urged that bond owners keep their securities
in places of safety, keep separate records of serial numbers
to expedite replacement in case of theft; and he repeated
Secret Service warnings to handlers of Government checks to
safeguard them against loss, and to demand positive identi
fication from persons presenting checks for payment.
Mr. Maloney particularly warned service men due to
receive terminal leave checks and bonds to protect these
instruments against the forger.
He pointed out that under
the terminal leave legislation, some 15,000,000 checks and
12,000,000 bonds will be sent to former servicemen.
Mail
vgg wfxi be on the lookout for these, the Treasury
official fears.
TREASURY DEPARTMENT
>
;
*
-
„
Washington
cL p Z ^ -.
PROPOSED EEE£S_JE£8A6E
go#
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.
0— 5 3,71^
„ „
7
Thefts and forgeries of United States Savings Bonds
mounted during the 1946 fiscal year, and similar depre
dations against recipients and cashers of Government checks
continued to increase, James J. Maloney, Acting Chief of
the United States Secret Service,reported today,
Mr, Maloney urged that bond owners keep their securities
in places of safety, keep separate records of serial numbers
to expedite replacement in case of theft; and he repeated
Secret Service warnings to handlers of Government checks to
safeguard them against loss, and to demand positive identi
fication from persons presenting checks for payment.
Mr. Maloney particularly warned service men due to
receive terminal leave checks and bonds to protect these
instruments against the forger.
He pointed out that under
the terminal leave legislation, some 15,000,000 checks and
12,000,000 bonds will be sent to former servicemen.
Mail
thieves will be on the lookout for these, the Treasury
official fears.
TREASURY DEPARTMENT
Washington
F O R RELEASE,
AFTERNOON HEWSPAPERS,
Saturday,. August 3? 1946_________
Press Service
S-3 I
Thefts and forgeries of United States Savings Bonds mounted
during the 1946 fiscal year, and similar depredations against
recipients and cashers of Government checks continued to in
crease, James J, Maloney, Acting Chief of the United States
Secret Service, reported today .
Mr. Maloney urged that bond owners keep their securities
in places of safety, keep separate records of serial numbers
to expedite replacement in case of theft; and he repeated Secret
Service warnings to handlers of Government checks to safeguard
them against loss, and to demand positive identification from
persons presenting checks for payment,.
Mr. Maloney particularly warned service men due to receive
terminal leave checks and bonds to protect these instruments
against the forger.
He p o i n t e d .out that under the terminal
leave legislation, some 15,000,000 checks and 12,000,000 bonds
will be sent to former servicemen.
Mail thieves will be on
the lookout for these, the Treasury official fears.
Secret Service reports for the year ended June 30, released
by Elmer L. Irey, Coordinator of Enforcement, showed a moderate
upturn in seizures of bogus bills and coins, the first increase
in several years, due principally to the importation, by return
ing service personnel and travelers, or in currency shipments,
of a trickle of bogus bills of foreign origin.
In nearly every
case, these bills were of types known to the Service before the
war, and were of poor workmanship.
Most such counterfeits were
seized promptly upon presentation to United States banks.
Face value of bogus bills and coins seized during the year
was $74,263, against $68,324 in 3-945. Of these totals only
$39,171 represented losses to storekeepers and others in the
United States, compared with $28,840 in 1945♦
. While no important counterfeiting activity within the United
States came to the attention of the Service during the year, one
rather spectacular case involving old notes of the notorious
Victor (Count) Bustig gang was closed,
Bustig now is serving
a 20-year sentence at Alcatraz prison.-David Kratenstein, 34 years
old, and George Van Orden, 45 years old, of Hew York City, were
sentenced to two years and 15 months imprisonment,-respectively,
for trafficking in these old counterfeits.- - Seventeen $100 notes
were involved.
The case had such fiction thriller elements as
undercover work, attempted bribery of the Treasury agents, and
a "listening' post" assignment to an Agent in the trunk of an
automobile..
2
Kratenstein claimed he found the bills in an envelope at
Ebbets Field when he went to watch the Brooklyn Dodgers play
the Pittsburgh Pirates.
The alibi exploded when investigation
revealed that the Dodgers and Pirates did not play that week.
There were nearly 30,000 forged checks received for in
vestigation during the year, compared with 16,500 in 1945;
bond forgery cases jumped from 2,500 to 12,000.
Dearly 700 juveniles were among 2,134 persons arrested
by the Service for forgery.
In Dew York City, a youthful'
forgery ring that had left a trail of checks in groceries,,
delicatessens, cashing agencies, and department stores for
three months was broken with arrest of six boys ranging in
age from 13 to 16 years. Without offering or being asked for
identification they cashed checks for mustering-out pay, in
come tax refunds, and social security benefits.
Another investigation in Dew York City unearthed a ’’Fagin”
in reverse.
Three boys, the oldest 16, trained and used an
adult man to pass Government checks which the youths stole and
forged.
Some 125 checks were handled by the gang.
Secret Service Agents and Chicago police arrested a man
and wife for wholesale bond forgeries, totalling some $16,000.
They robbed private homes in Indiana, Ohio, Michigan, Kentucky,
Kansas, Florida and Alabama.
The husband, Paul Risner, carried
a ’’forgery kit” , including a portable typewriter, a stapling
machine, ink eradicator, inks, stolen ration books and identi
fication cards, together with identification photographs of
himself and his wife to be pasted on the cards.
He was sen-'
tenced to 2 to 4 years in s t a t e !s prison, and his wife, Ruby,
to 1 to li years.
In its job of protecting the President, the Service worked
out security measures for Mr. Truman’s visit to Potsdam, and
for his journeys to other points outside Washington.
Most sig
nificant of these protective activities was the arrest and con
finement of an alleged self-*proclaimed ’’executioner” , on charges
of threatening the life of the Chief Executive.
The suspect, who
is being held under bond for grand jury action, is said by the
Service to have a long criminal record, as well as having been
hospitalized in a mental institution three times.
In another phase of security work, the Uniformed Force of
the Secret Service protected money, stamps, bonds and other
securities worth $ 300 ,000,000,000 in production and storage in
Washington and Chicago, and about $ 250 ,000,000,000 in transit.
oOo
BB m i p
•,«¿V'*-*>: (;
-
6
-
Thirty-four persons were indicted by a Federal grand
jury in Los Angeles on conspiracy charges in connection
with alleged narcotics law violations*
The defendants
allegedly operated on both east and west coasts, in drugs
smuggled from Mexico*
Seventeen persons were indicted on similar charges by
a Federal grand jury at San Francisco, allegedly members
of a gang distributing Mexican-origin dope along the
Pacific Coast*
Customs and Narcotics officers seized 240 ounces of
opium at Douglas, Arizona,
in arresting Pablo Cruz, follow
ing purchases for evidence by officers*
Cruz drew a pistol
in resisting arrest and was forcibly disarmed.
5
sentencing of several principals,
courts on other than narcotic
some of them in state
charges.
One suspect was
slain, gangland fashion, reportedly following a quarrel
a m o n g the thieves#
Other highlights of Treasury narcotics enforcement work
were;
Twenty-five persons were arrested in June 1946, following
an intensive undercover investigation in the Dallas-Port ^orth
area.
This ring trafficked in narcotics smuggled from Mexico
and in stolen narcotics.
Included in those charged was
Anice Beland Hamilton, member of the notorious Beland clan of
Port Aorth, which has, for a generation,
cotics traffic.
engaged in the nar
Members of the family have been arrested and
imprisoned on numerous occasions.
John ^Higene Jurgeson, addict, robber and safe cracker,
was sentenced in state court at Port Worth to a total of
396 y e a r s
imprisonment in cases involving armed robbery of
many drug stores.
An accomplice, Nolan V. Thomson, burglar
and robber, was sentenced to a total of 198 years#
Sight persons were 3oiTcto^pg* i oon as a result of inves
tigation of the theft, late in 1945, of 400,000 morphine
tablets from a New York City drug supply house.
A portion
of the stolen drugs has been recovered, the truck used in
connection with the theft seized, and indictments against
perhaps a dozen more suspects will be sought.
4
The Texas-Oklahoma narcotics crime wave has involved
both smuggled supplies and wholesale diversions from
legitimate stocks*
Gangs of highly skilled burglars oper
ating in the two states have been responsible for depreda
tions against narcotics stocks, and a source of serious
concern to both Treasury and local law enforcement officers*
Much of the loot appeared to find its way to Dallas, Texas,
for distribution by a highly organized gang*
Virgil William Ashford,
identified by the Bureau of
Narcotics as one of the ringleaders of the north Texas dope
traffic, and two associates were given prison terms on evi
dence assembled by undercover narcotics officers.
Ashford
has a long record including convictions for robbery and
Darceny.
He was an expert safe cracker.
In addition to
drugs smuggled from Mexico, he sold in the illicit traffic
narcotics stolen from legitimate stocks.
Some of his
lieutenants sometimes resorted to the device of a hollowedout sweet potato for concealment and transportation of the
drugs•
One of the major diversions resulted from the looting
of a large wholesale drug house in Tulsa, Oklahoma, where
a safe was opened with a blow torch and the entire narcotics
stocks stolen.
This case has been partially solved with the
3
Mr* Irey said the Treasury enforcement agencies have
been materially strengthened for dealing with postwar
problems by the return of many key men from military ser
vice.
He said reports indicated that, narcotic drugs in
the illicit traffic continued to be relatively scarce,
and extremely high prices prevailed*
Crude and smoking
opium maintained an important relative position in the
illicit traffic.
The principal sources of supply for
opium were Mexico, Iran and India.
Because of the scarcity of narcotics from other sources,
there were a substantial number of burglaries, robberies and
larcenies from pharmacies, wholesale houses, and other reg
istered establishments, and many cases of forgery of
perscriptions and attempts to obtain drugs by misrepresen
tations .
The Bureau of Narcotics developed a number of cases
arising from addiction to and diversion of the synthetic,
morphine-like drug, Demorel.
A shift in the "center of gravity” of narcotics traffic
from the coasts to the southwest, especially Texas and
Oklahoma, was an Interesting development of 1946 enforcement
work, and followed the breaking up of several notorious
New York and California gangs, whose principals have been
sentenced to long prison terms In recent years*
2
He said that thus far the Bureau has identified only a
handful of cases of addiction with military service, and
only a few minor instances of traffic involving drugs fugi
tive from the battlefields have developed.
Seizures of drugs in the interior traffic, and by
Customs at ports and borders, totalled 8,661 ounces during
the year ended June 30, 1946, a decrease from 10,285 ounces
in the previous year,
The decrease was due primarily to a
decline in seizures at the ports and, according to Deputy
Commissioner of Customs E. J. Shamhart, was a reflection
of a shift in the volume of shipping away from ”infected”
areas•
Arrests for violation of Narcotic laws increased in
number while the volume of drugs seized declined, the total
for 1946 being about 1,800, comparing with 1,500 in 1945.
The increased number of arrests was due partially to con
centration against the "retail" fringes of several major
gangs that had been broken at the top level in the previous
two years.
Wholesale indictments against peddlers and
middlemen were obtained in several states.
Marihuana arrests and seizures increased, with arrests
totalling about 850, some 200 more than in 1945; and seiz
ures aggregating 12,446 ounces against 12,325 in 1945.
TREASURY DEPARTMENT
Washington
Ot^j
(
fife'-RELE A SE
Lffl<t^i>
S ~ ~&
3
Advance planning by Treasury agencies and military
authorities to prevent a resurgance of illicit narcotics
traffic with the end of hostilities proved effective during
the 1946 fiscal year, Elmer L. Irey, Coordinator of Enforce
ment, reported today to Secretary Snyder.
Seizures made by the BureauSof Narcotics and Customs
showed no significant change in volume as compared with
the 1945 period.
Students of the drug problem, recalling
worldwide waves of addiction and traffic following previous
wars, had expressed concern over the possibility of a simi
lar pattern appearing with the relaxation of wartime control
Harry J. Anslinger, Commissioner of Narcotics, today
expressed gratification that such a trend has not appeared
as yet, but warned that the danger has not passed.
He
pointed out that this traffic reached its peak more than a
decade after the first World War ended.
He praised the
work dame by military authorities in minimizing the dangers
attendant to the exposure of large bodies of troops to the
traffic in areas of open sale of narcotics, or through medi
cal treatment, and for the prompt and efficient freezing of
supplies of narcotics abandoned by enemy forces.
TREASURY DEPARTMENT
Washington
FOR RELEASE, M O R N I N G N E W S P A P E R S
Sunday, A u g u s t 4, 1946
Press S e r v i c e
No, S-38
Advance planning by Treasury agencies and military aut h o
rities to p r e v e n t a r e s u r g e n c e of illicit n a r c o t i c s traffic w i t h
the end of h o s t i l i t i e s p r o v e d e f f e c t i v e d u r i n g the 1946 fiscal
year, E l m e r L * Irey, C o o r d i n a t o r of E n f o r c e m e n t , re p o r t e d t o d a y
to S e c r e t a r y Snyder.
Seizures made by the Bureaus of Narcotics and Customs
showed no significant change in volume as compared with the
194 5 period.
Students of the drug problem:,- recalling world
wide waves of addiction and traffic following previous wars,
had expressed concern over the possibility of a similar
pattern appearing with the relaxation of wartime controls.
H a r r y J. Anslinger, C o m m i s s i o n e r of Narcotics, today
e x p r e s s e d g r a t i f i c a t i o n that s u c h a trend has n ot a p p e a r e d as
yet, but w a r n e d that the d a n g e r has not passed.
He p o i n t e d
out that this traffic r e a c h e d its p e a k m o r e than a d e c a d e a f t e r
the first W o r l d W a r ended.
He p r a i s e d the w o r k done b y military
a u t h o r i t i e s in m i n i m i z i n g the d a n g e r s a t t e n d a n t to the ex p o s u r e
of large b o dies o f troops to the traffic in areas of o pen sale
o f narc o t i c s , or t h r o u g h m e d i c a l treatment, and for the prom p t
a n d e f f i c i e n t f r e e z i n g of s u p plies of n a r c o t i c s a b a n d o n e d by
e n e m y forces.
He said that thus far the Bureau has identified only a
handful of cases of addiction with military service, and only
a few minor instances of traffic involving" drugs fugitive from
the battle fields have developed,
S e i z u r e s o f d r u g s in the i n t e r i o r traffic, and b y Customs
at ports and borders, t o t a l l e d 8 , 661 ounces d u r i n g the yea r
ended June 30, 1946, a d e c r e a s e f r o m 1 0 , 2 3 5 ounces in the p r e
vious year.
The d e c r e a s e was due p r i m a r i l y to a de c l i n e in
seizures at the ports and, a c c o r d i n g to D e p u t y C o m m i s s i o n e r of
C u s toms E, J, Shamhart, was a r e f l e c t i o n o f a shift in the
volume of s h i p p i n g away f r o m " i n f e c t e d ” areas.
A r r e s t s for v i o l a t i o n o f n a r c o t i c s laws I n c r e a s e d in n u m
b e r w h ile the volume o f d r ugs seized declined, the total for
1946 b e i n g about 1,800, c o m p a r i n g w i t h 1 , 500 in 1945.
T he in
c r e ased n u m b e r o f a r r e s t s was d ue p a r t i a l l y to c o n c e n t r a t i o n
a g a inst the " r e t a i l ” fringes of s e v e r a l m a j o r gangs that h a d
b e e n b r o k e n at the top level in the pr e v i o u s two years. W h o l e
sale I n d i c t m e n t s against p e d d l e r s a n d m i d d l e m e n wer e o b t ained
in several states.
m
Q
m
M a r i h u a n a arrests and seizures increased, w i t h arrests
t o t a lling ahou^b 850, some 200 m o r e than in 1945; and seizures
a g g r e g a t i n g 1 2 ',446* ounces a g a i n s t 1 2 , 3 2 5 in 1945.
Mr. Irey said the T r e a s u r y e n f o r c e m e n t a g e n c i e s have "been
m a t e r i a l l y s t r e n g t h e n e d for d e a l i n g w i t h p o s t w a r p r o blems b y
the r e t u r n of m a n y key m e n f r o m m i l i t a r y service.
He said renorts i n d i c a t e d t h a t n a r c o t i c drugs in the i l l icit traffic
con t i n u e d to be r e l a t i v e l y scarce, and e x t r e m e l y h i g h prices
prevailed.
Crude and sm o k i n g o p i u m m a i n t a i n e d an imp o r t a n t
relative p o s i t i o n in the illicit traffic.
The p r i n c i p a l sources
of s u p p l y f o r o p i u m were Mexico, Iran and India.
B e c a u s e of the s c a r c i t y of n a r c o t i c s f r o m other sources,
there were a s u b s t a n t i a l n u m b e r of b u r g l a r i e s , r o b b e r i e s and
l a r c e n i e s f r o m p harmacies, w h o l e s a l e houses, and o t h e r r e g i s
tered establ i s h m e n t s , a nd m a n y cases o f forgery of p e r s c r i p tions and at t e m p t s to o b t a i n d r ugs b y m i s r e p r e s e n t a t i o n s .
The B u r e a u of N a r c o t i c s d e v e l o p e d a n u m b e r of cases
a r i s i n g f r o m a d d i c t i o n to and d i v e r s i o n of the synthetic,
m o r p h i n e - l i k e drug, D e m orol.
A shift in the ’’c e n t e r o f g r a v i t y ” of n a r c o t i c s traffic
f r o m the coasts to the southwest, e s p e c i a l l y Texas and Oklahoma,
was a n i n t e r e s t i n g d e v e l o p m e n t o f 1946 e n f o r c e m e n t work, and
followed the b r e a k i n g u p of several n o t o r i o u s N e w Y o r k and
C a l i f o r n i a gangs, w h o s e p r i n c i p a l s hav e bee n sen t e n c e d to long
p r i s o n terms in recent year s .
The T e x a s - O k l a h o m a n a r c o t i c s crime w a v e has i n v o l v e d b o t h
smuggled su p p l i e s a n d w h o l e s a l e d i v e r s i o n s f r o m l e g i t i m a t e
stocks.
G a n g s of h i g h l y sk i l l e d b u r g l a r s o p e r a t i n g in the two
states have b e e n r e s p o n s i b l e for d e p r e d a t i o n s a g a i n s t n a r c o t i c s
stocks, a n d a source of serious c o n c e r n to both. T r e a s u r y and
local law e n f o r c e m e n t officers.
M u c h of the loot appeared,, to
find its w a y to Dallas, Texas, f o r d i s t r i b u t i o n b y a h i g h l y
o r g a n i z e d gang.
Virgil W i l l i a m Ashford, i d e n t i f i e d b y the B u r e a u of
N a r c o t i c s as one of the r i n g l e a d e r s o f the n o r t h Texas d o p e
traffic, and two a s s o c i a t e s were g i v e n p r i s o n terms on evi^
dence a s s e m b l e d by u n d e r c o v e r n a r c o t i c s officers.
A s h f o r d has
a long r e c o r d i n c l u d i n g c o n v i c t i o n s for r o b b e r y and larceny*
He was an e x p e r t s a f e 'c r a c k e r ♦ In a d d i t i o n to drugs s m u g g l e d
from Mexico, he sold in the illicit traffic n a r c o t i c s stol e n
from l e g i t i m a t e stocks*
Some o f h i s l i e u t e n a n t s so m e t i m e s r e
sorted to the d e v i c e of a h o l l o w e d - o u t sweet p o t a t o for
c o n c e a l m e n t and t r a n s p o r t a t i o n o f the drugs*
*
-
3
-
One of the m a j o r d i v e r s i o n s re s u l t e d from the l o o t i n g of
a l a r g e .1 w h o lesale d rug h o u s e in Tulsa, Oklahoma, where a safe
was o p e n e d w i t h a b l o w t o r c h and the entire n a r c o t i c s stock
stolen.
This case has b e e n p a r t i a l l y s o l v e d w i t h the s e n t e n c
ing o f several principals, some of t h e m - i n state courts on o t her
than n a r c o t i c charges.
One suspect was slain, g a n g l a n d fashion,
r e p o r t e d l y following a quarrel a m o n g the thieves.
Other highlights of Treasury narcotics enforcement work
were:
T w e n t y - f i v e p e r sons w e r e a r r e s t e d in June 1946, following
an i n t e n s i v e u n d e r c o v e r i n v e s t i g a t i o n in the Dallas-T'ort W o r t h
area.
T h i s ring t r a f f i c k e d in n a r c o t i c s s m u g g l e d fro m M e x i c o
and in s t o l e n n a r c o t i c s .
I n c l u d e d in those c h a r g e d was A n ice
B e l a n d Hamilton, m e m b e r of the n o t o r i o u s B e l a n d clan o f . Port
W o r t h w h i c h has, f o r a g e n e ration, e n g a g e d in the n a r c o t i c s
traffic.
M e m b e r s of the family h a v e b e e n a r r e s t e d and i m p r i s
oned on n u m e r o u s occasions.
John E u g e n e Jurgeson, addict, r o b b e r and safe cracker,
was s e n t e n c e d in state court at Fort W o r t h to a total of 396
years i m p r i s o n m e n t in cases i n v o l v i n g a r med r o b b e r y of m a n y
dru g stores.
An a ccomplice, N o l a n V# Thomson, b u r g l a r and
robber, w a s sen t e n c e d to a total of 198 years.
E i g h t persons w e r e c h a r g e d as a r e sult of i n v e s t i g a t i o n
of the theft, late in 194 5, of 4 0 0 , 0 0 0 m o r p h i n e tablets f r o m
a N e w Y o r k City drug supply house.
A p o r t i o n of the s t o l e n
drugs h as been recovered, the truck u s e d in c o n n e c t i o n w i t h
the theft seized, and i n d i c t m e n t s a g a i n s t p e r haps a d o z e n
more s u s pects wil l be sought.
T h i r t y - f o u r p e r s o n s w ere i n d i c t e d b y a Federal g r and jury
in Los A n g e l e s on c o n s p i r a c y c h a rges in c o n n e c t i o n w i t h a l l e g e d
n a r c o t i c s law violations.
The d e f e n d a n t s a l l e g e d l y o p e r a t e d on
both eas t and w e s t coasts, in d r u g s s m u g g l e d f r o m Mexico.
S e v e n t e e n persons wer e i n d i c t e d on s i m i l a r charges by a
Federal g r a n d jury at °an Francisco, a l l e g e d l y m e m b e r s of a
g ang d i s t r i b u t i n g M e x i c a n - o r i g i n d o p e a l o n g the P a c ific Coast.
C u s toms and N a r c o t i c s o f f i c e r s s e ized 240 ounces of o p i u m
at D o u glas, Arizona, in a r r e s t i n g Pablo Cruz, f o l l o w i n g p u r
chases for e v i d e n c e b y o f f icers.
Cruz d r e w a pist o l in r e s i s t
ing arre s t and was f o r c i b l y d i s a r m e d .
oOo
TREASURY DEPARTMENT
Bureau of Internal Revenue
Washington 25, D. C.
Press Service
FOR. RaLiIjASE
/>.«k j
x, 1f*<> •
Joseph D. Nunan, Jr., Commissioner of Internal Revenue, todayreminded employers that Salary Stabilization Regulations were auto
matically restored to full effect by the recent act of Congress extending
OPA and other anti-inflation activities.
However, the Commissioner announced that the Regulations will be so
administered as to avoid penalties for salary raises made between June 30
and July 25, when the extension Act was pending.
In line with this policy, the Commissioner has obtained authority
from the Director of Economic Stabilization and will hereafter waive the
former requirement that employers file formal notices within 30 days
after increasing salaries as a preliminary to seeking higher OPA price
ceilings. Although these salary increases must nevertheless receive
formal approval from the Commissioner before OPA will consider them as
a basis for higher price ceilings, today’s action will enable the
employer to apply for approval of the salaries at his own convenience
and without prior notice.
In general, the present Salary Stabilization regulations require no
application or formality of any kind when making salary increases which
will not be the basis for seeking higher 0.'DA
The exceptions to this rule are that
approval, (a) reduce salaries below $5,000, or ^d ;
an xu a licw
plant (or in a new department of an existing plant) salary rates in-excess
of the minimum of those prevailing in his industry or locality.Jn these
cases, no penalties will be invoked for the payment of amo o « » ** salaries
since June 30 if by August 15 the salaries are reoUaeed to June 30 levels,
or if in the meantime formal approval is obtained/for payment of such
salaries. Otherwise, these 'salaries are unlawful|and may be disallowed as
deductions on the employer’s income tax returns.
Employers having specific questions as to
invited to consult the nearest regional office
Unit of the Bureau of Internal Revenue.
tions are
Stabilization
W
DATÉ.
U
M
S
August 1, 1946.
ÿ i&
k
'J* *
yyiJiÿS-eJi. ,
C)dL«JLCZ~&-ri
S ^ r J y,
FRQM-
«*
% v/: /ty
C+jjp4S-~
^ïr^jtsC $j
of the SSU press release approved by
Bthe original draft was returned to me
Hr instructions from Mr. Gardner, the
Hated redrafting for the purpose of
:l|Je to the general public.
ffilexpress my regret that my office was
'I'issu in preparing this release prior to
_________ _
This regret is based .on the belief
that~we could and should have been of such assistance. This is not a matter
of wounded vanity; rather it concerns the function of the Public Relations
Division.
Respectfully,
Irving Perimeter.
Attached is a proposed redraft of the SSU press release approved by
you yesterday.
I
prepared this redraft after the original draft was returned to me
for redrafting by Mr. Shaeffer under instructions from Mr. Gardner, the
Under Secretary. Mr. Gardner requested redrafting for the purpose of
making the release more intelligible to the general public.
In this connection, I wish to express my regret that my office was
not given an opportunity to assist SSU In preparing this release prior to
its submission to you for initialing. This regret is based on
that we could and should have been of such assistance. This is not a matter
of wounded vanity; rather it concerns the function of the Public Relations
Division.
Respectfully,
Irving Perimeter
TREASURY DEPARTMENT
B u r e a u of In t e r n a l R e v e n u e
W a s h i n g t o n 25, D. C.
FOR I M M E D I A T E R E L E A S E
Friday, A u g u s t 2, 1946
Press S e r vice
No. S-39
J o s e p h D. Nunan, Jr., C o m m i s s i o n e r of I n t e r n a l R e v e n u e *
t o d a y r e m i n d e d employers t hat S a l a r y S t a b i l i z a t i o n R e g u l u l a t i o n s
w e r e a u t o m a t i c a l l y r e s t o r e d to f u l l e f fect by the r e c e n t a ct
of C o n g r e s s e x t e n d i n g OPA a n d o t her a n t i - i n f l a t i o n a c t i v i t i e s .
However, the C o m m i s s i o n e r a n n o u n c e d that the R e g u l a t i o n s
w i l l be so. a d m i n i s t e r e d as to a v o i d p e n a l t i e s f or s a l a r y raises
m a d e b e t w e e n June 30 a n d J u l y 25, w h e n the e x t e n s i o n A c t was
pending.
In line w i t h this policy, the C o m m i s s i o n e r has o b t a i n e d
a u t h o r i t y f r o m t he D i r e c t o r of E c o n o m i c S t a b i l i z a t i o n and w i l l
h e r e a f t e r w a i v e the f o r m e r r e q u i r e m e n t tha t employers file
f o r m a l n o t ices w i t h i n 30 days a f t e r i n c r e a s i n g salaries as a
p r e l i m i n a r y to s e e k i n g h i g h e r OPA p r i c e c e i lings.
Although
these s a l a r y increases m u s t n e v e r t h e l e s s r e c e i v e f o r m a l a p
p r o v a l f r o m the C o m m i s s i o n e r b e f o r e OPA w i l l c o n s i d e r t h e m as
a basis f or h i g h e r p r ice ceilings, t o d a y ’s a c t i o n w i l l enable
the e m p loyer to a p p l y f o r a p p r o v a l of the sal a r i e s at his own
c o n v e n i e n c e a n d w i t h o u t p r i o r notice.
In general, the p r e s e n t 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
r e q u i r e no a p p l i c a t i o n or f o r m a l i t y of a n y k i n d whe n m a k i n g
s a l a r y increases w h i c h w i l l not be t h e basis f o r s e e k i n g h i g h e r
OPA ceilings.
The e x c e p t i o n s to this r u l e are t h a t no e m p l o y e r may, w i t h
out p r i o r approval, (a) r e d u c e s a l a r i e s b e l o w $>5 ,0 0 0 , or fb) e s
t a b l i s h in a n ew p l a n t (or in a n e w d e p a r t m e n t of an exi s t i n g
plant) s a l a r y r a t e s in excess of the m i n i m u m of t h o s e p r e v a i l
ing in his i n d u s t r y or locality.
In these cases, no p e n a l t i e s
w ill be i n v o k e d f o r the p a y m e n t of i m p r o p e r sa l a r i e s since
June 30 if by A u g u s t 15 the s a l a r i e s a r e ' r e s t o r e d to June 30
levels, or if in the m e a n t i m e f o r m a l a p p r o v a l is o b t a i n e d for
p a y m e n t of s u c h salaries.
Otherwise, these s a l aries are u n
lawful a n d 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 t ax retur n s .
E m p l o y e r s h a v i n g s p e c i f i c q u e s t i o n s as t o t h e s e R e g u l a t i o n s
are i n v i t e d to c o n s u l t the n e a r e s t r e g i o n a l office of the S a l a r y
S t a b i l i z a t i o n U n i t of the B u r e a u of I n t e r n a l R e v e n u e ,
oOo
Thefts of merchandise from Customs custody was an
annoying problem.
'
trivial,
Although most of the thefts were
the petty thievery by some merchant seamen and
employees of shipping and d0ck organizations was so fre
quent in seaports as to require constant attention.
Many of these thefts were of scarce foods,
and there w a s
one important case of pilferage of liquor from a bonded
warehouse.
Several persons were convicted in connection
with this theft, of more than 300 barrels of alcohol
from a Philadelphia establishment.
Alcohol Tax Unit
Agents cooperated in the investigation, which involved
some $300,000 in duty and internal revenue taxes.
2
Investigations by Customs Agents disclosed numerous
instances’of importers entering merchandise into the
United States by means of false consular invoices and false
entry papers, to evade proper duties.
The forfeiture value
of merchandise in one case alone was 1*44,000, and the esti
mated loss of duty, had the misrepresentation succeeded,
was nearly |7,000.
Typical of export control violations investigated was
a case involving illegal exportation of eight automobiles
and a trailer from Philadelphia to Spain by a troop of
bullfighters.
Investigation proved the cars, instead of
being owned individually, belonged to
a Portugeese promoter of bull fights, who exported them
for resale.
\s
m^u/.
paid a fine of $>3,500.
One major case of attempted smuggling of scarce food
stuffs into the country developed at St. Albans, Vermont,
and involved personnel of international railroad trains.
Seizures were made of hams, sides of bacon, beef, lamb,
pork, and more than 50 pounds of butter, purchased in Canada.
Three persons were arrested for attempting to enter the mer
chandise without payment of duti e s «
Customs patrolmen arrested two men at Detroit in the
seizure of 112 ounces of gold, valued at §3,800.
was of Canadian origin.
The gold
TREASURY DEPARTMENT
Washington
£
PROPOSED" PRESS" KBESASE
O bC*
*'
Qe*t***^J ¿fi
If
___
¿f q
J ^
Enforcement work of the Bureau of Customs during the
1946 fiscal year shifted toward a peacetime pattern, hut
one emergency function,
the physical control of experts,
continued a major activity, the Treasury reported today.
Entrusted with the administration at the ports,
in
behalf of the Office of International Trade, of the regu
lations issued under the Expert Control Act of 1940,
Customs men broke up numerous attempts to export critical
goods in violation of licensing requirements,
W, ft# Johnson, Commissioner of Customs,
said auto
mobiles and tires were major items involved in this
reversed sort of smuggling, and Agents made numerous
seizures.
At the same time, intensive searches of vessels,
vehicles, cargoes, baggage, and of persons entering and
leaving the United States continued to be productive of
excellent enforcement results. ^
Mr. Johnson said that, while the cessation of hostili
ties brought some decrease in shipping, the volume continued
heavy, and with the resumption of commercial traffic with
European, Near Eastern and Far Eastern countries in the lat
ter half of the fiscal year, business at United States ports
showed a substantial pickup.
TREASURY DEPARTMENT
-
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Tuesday, August 6 , 194-6
Press Service
No. S-4-0
Enforcement work of the Bureau of Customs during the 194-6 fiscal
year shifted toward a peacetime pattern, but one emergency function, the
physical control of exports, continued a major activity, the Treasury
reported today.
Entrusted with the administration at the ports, in behalf of the
Office of International Trade, of the regulations issued under the
Export Control Act of 194-0, Customs men broke up,numerous attempts to
export critical goods in violation of licensing requirements.
W. R. Johnson, Commissioner of Customs, said automobiles and tires
were major items involved in this reversed sort of smuggling, and Agents
made numerous seizures. At the same time, intensive searches of vessels,
vehicles, cargoes, baggage, and of persons entering and leaving the
United States continued to be productive of excellent enforcement results
Mr. Johnson said that, while the cessation of hostilities brought
some decrease in shipping, the volume continued heavy, and with the
resumption of commercial traffic with European, Near Eastern and Far
Eastern countries in the latter half of the fiscal year, business at
United States ports showed a substantial pickup.
Investigations by Customs Agents disclosed numerous instances of
importers entering merchandise into the United States by means of false
consular invoices and false entry papers, to evade proper duties. The
forfeiture value of merchandise in one case alone was $44 ,000 , and the
estimated loss of duty, had the misrepresentation succeeded, was nearly
$7,000.
Typical of export control violations investigated was a case
involving illegal exportation of eight automobiles and a trailer from
Philadelphia to Spain by a troop of bullfighters. Investigation proved
the cars, instead of being owned individually, belonged to a Portuguese
promoter of bull fights, who exported them for resale. He paid a fine
of $3*500.
One major case of attempted smuggling of scarce foodstuffs into the
country developed at St. Albans, Vermont, and involved personnel of
international railroad trains. Seizures ?/ere made of hams, sides of
bacon, beef, lamb, pork, and more than 50 pounds of butter, purchased
in Canada. Three persons were arrested for attempting to enter the
merchandise without payment of duties.
Customs patrolmen arrested two men at Detroit in the seizure of
112 ounces of gold, valued at $3,BOO. The gold was of Canadian origin.
-
2
-
Thefts of merchandise from Customs custody was an annoying problem.
Although most of the thefts were trivial, the petty thievery by some
merchant seamen and employees of shipping and dock organizations was so
frequent in seaports as to require constant attention. Many of these
thefts were of scarce foods, and there was one important case of
pilferage of liquor from a bonded warehouse» Several persons were con
victed in connection with this theft, of more than 300 barrels of
alcohol from a .Philadelphia establishment. Alcohol Tax Unit Agents
cooperated in the investigation, which involved some $300,000 in duty
and internal revenue taxes.
•oOo-
TREASURY DEPARTMENT
John W. Snyder,
Secretary of the Treasury and Chairman
of the Boards of Governors of the International Monetary Fund
and International Bank for Reconstruction and Development,
has called the first annual meetings of.boards to convene in
A
Washington on September 27th.
Invitations were sent to the Governors 'and Alternate
1
Governors representing the§39 members of the Fund and the 38
members of the Bank.
(
:
TREASURY DEPARTMENT
Washington
FOR I M M E D I A T E R E L E A S E
Friday, A u g u s t 2, 194 6
John W.
m an
Snyder,
of the B o a r d s
Monetary
Press Service
No. S-41
S e c r e t a r y o f the T r e a s u r y an d C h a i r
of G o v e r n o r s o f the I n t e r n a t i o n a l
Fund a n d I n t e r n a t i o n a l B a n k
and Development,
the b o a r d s
has
called the
to convene
Invitations were
Governors
38 m e m b e r s
for R e c o n s t r u c t i o n
first annual m e e t i n g s
of
in W a s h i n g t o n on S e p t e m b e r 27th.
sent
representing
the
to the G o v e r n o r s
39 m e m b e r s
of the Bank.
oOo
of the
and A l t e r n a t e
Fund and the
th&asbbx m v m r n m
Washington
wmm& mmmmz,
m
Tuesday» August 6,
semo«
if-^ —
191*6«
The secretary of the
Treasury announced
' .
last evening that the tendere for
$1*300*000,000, or thereabout*, of 91-day Treasury bill« to be dated August $ and to
»ature Scveæber T* 191*6, ehich «ere offered on August 2, 191*6* were opened at the Padera! Heserve Banka on August 5*
The details of this issue are as follows*
Total applied for - $1,823,956,000
Total accepted
* 1,315,336,000
Average price
(includes $35,506,000 entered on a fixedprice basis at 99*905 and accepted in full)
- 99*905/ Äquivalent rate of discount approx* 0*3765 per annua
Hange of accepted competitive bids*
High
lew
- 99*90? Suivaient rate of discount approx* 0*3685 per m
- 99.905
*
»
«
»
«
0*3765 *
*
(?Q percent of the anount bid for at the lew price eus accepted)
Federal Eeserve
District
Total
Applied for
Total
Boston
lee lorie
Philadelphia
C&sveland
i
7,295,000
1,376,776,000
32.960.000
$
12.785.000
Atlanta
11.175.000
5,625,000
Chicago
288,61*5,000
St* louis I
Minneapolis
Kansas City
&M
Dfrll
*
Ban Francisco
TOTAL
6,1*05,000
12.620.000
13,71*5,000
11,815,000
hk,110,000
$1,823,956,000
5 ,U95.000
982,396,000
25,1*30,000
9.755.000
io,5 7 5 ,ooo
«4,585,ooo
5.835.000
9.620.000
aW 12,305,000
9.235.000
3lt,510.000
»1,315,336,000
TREASURY DEPARTMENT
Washington
FOR RELEASE, M O R N I N G N E W S P A P E R S
T u e s d a y „Morning, August 6 , 1946
Press Service
No* S-42
T he .Secretary o f the T r e a s u r y a n n o u n c e d last
the tenders for $ 1 , 5 0 0 , 0 0 0 , 0 0 0 o r t hereabouts, of
T r e a s u r y bills to b e d a t e d August 8 and to m a t u r e
which were offered on August 2 , 1946, were open e d
Reserve Banks on A u g u s t 5.
ev e n i n g that
9 1 -day
N o v e m b e r 7, 1946
at the Federal
The d e t a i l s of this issue are as follows;
T o tal a p p l i e d for - $ 1 , 8 2 3 , 9 5 6 , 0 0 0 .
Total a c c e p t e d
1 , 3 1 5 , 3 3 6 , 0 0 0 (includes $ 3 5 , 5 0 6 , 0 0 0
entered on a fixe d - p r i c e
b a s i s at 9 9 . 9 0 5 and a c
c e p t e d in full)
Av e r a g e p r ice
9 9 . 9 0 5 /. Equiv. rate of d i s count ap prox
0 . 3 7 6 % per a n n u m
R a n g e o f a c c e p t e d c o m p e t i t i v e bids:
H i g h - 9 9 . 9 0 7 Equiv.
Low
- 99.9 0 5
"
(70 p e r c e n t
rate o f di s c o u n t
"
*
M
of the amount b i d for at
Federal R e s e r v e
District
TOTAL'-’
$
accepted)
Total
Accepted
7,295,000
1,376,776,000
32,960,000
12,785,000
11,175,000
5, 6 2 5 , 0 0 0
288,645,000
6,405,000
12,620,000
13,745,000
11,815,000
44,110,000
$
5,495,000
f 982,396,000
25,430,000
9,755,000
10,575,000
5 , 5 9 5 ,0 0 0
204,585,000
5,835,000
9,620,000
12,305,000
9 , 23”5 , 000
34,510,000
$1,823,956,000
$1,315,336,000
o Oo
I
the low p r i c e \ w a s
Total
Applied^Por
Boston
N e w York
Philadelphia
Cle v e land
Richmond
AtlantaC h i cago
St. L o u i s
Minneapolis
Kansas City
Dallas
S a n Francisco
approx 0 . 3 6 8 % p e r a n n u m
"
0 . 3 7 6 % *"
"
3
T he I n t e l l i g e n c e Unit,
h e a d e d b y W. H. Woolf,
cases i n v o l v i n g a p p a r e n t fraud,
w h i c h handles
h a d m o r e than 2 , 0 0 0 cases u n d e r
i n v e s t i g a t i o n d u r i n g the year,
and,
d r ive a n d a d d i t i o n a l p e r s o n n e l
j u s t - b e c o m i n g apparent,
i n d i c t m e n t s a g a i n s t 146 p e r s o n s
of 149 p e r s o n s
w i t h effects
d u r i n g the year,
out of 155 g o i n g t o \ t r & a m
of th e ta x
reported
a n d c o n v iction
psP^r
The $ 2 , 0 0 0 , 0 0 0 p a y m e n t m a d e u n d e r a c l a i m of v o l u n t a r y
d i s c l o s u r e is b e l i e v e d to be t he l a r g e s t t!c o n s c i e n c e p a y m e n t ”
of its k i n d in t h e h i s t o r y of the B u r e a u of I n t e r n a l R e v e n u e *
It is the p o l i c y of t h e T r e a s u r y to a s s e s s
r a t h e r t h a n to r e c o m m e n d c r i m i n a l action,
civil penalties,
a g a i n s t t a x p a y e r s who
come in b e f o r e an i n v e s t i g a t i o n into t h e i r a f f a i r s has been
instituted and voluntarily admit their delinquencies.
T h e t a x p a y e r a p p e a r e d to p r e f e r t h i s r o u t e r a t h e r than
ris k being
officials
en s n a r e d by the ever e x p a n d i n g t a x drive*
sai d he h a d p l e n t y of company,
d i s c l o s u r e s came in m a n y s e c t i o n s
i n s t i t u t i o n of i n v e s t i g a t i o n s
as " c h a i n r e a c t i o n ”
of the c o u n t r y w i t h the
of i n d i v i d u a l s a n d f i r m s o p e r
a t i n g in s u c h f i e l d s as textiles,
p o u l t r y a n d meats.
Bureau
furs,
r e a d y - t o - w e a r goods,
\
2
As aftermath of the U n i t ’s 1 9 4 3 ^ 0 - 9 4 4 drive that smashed
the black market in distilled spirits, the IS46 fiscal year
produced 127 additional indictments, and 85 persons were con
victed.
Many of these cases were perfected in cooperation with
the Office of Price Administration.
Working with the same agency,
the Unit helped to smash
widespread diversion of critically scarce sugar into illicit
distilling, particularly in several southern states.
One
hundred forty-three persons were convicted in this drive, and
827 merchants were suspended from trading in sugar.
Largely as a result of this drive, illicit distilling, as
measured by mash and still seizures, declined sharply as compared
with 1945 *
The Alcohol Tax Unit worked closely with the Intelligence
Unit, which is- looking into the tax liabilities of the liquor
rs
j company » W
Mdta ttt-
ae expanding activities of its agents assigned
to the investigation of tax law violations involving fraud, the
Bureau turned in its first billion dollar fiscal year in history
in taxes and penalties recommended.for assessment over and above
original payments by taxpayers.
The total of such additional
potential revenue was $1,275?000,000,
of which $1,102,000,000
represented income and excess profits tax adjustments recommended.
Por .1945? the total was $922,000,000.
TREASURY DEPARTMENT
Washington
PROPOSED PRESS RELEASE
S-42>
Stimulated by the Treasury’s drive against black market
and other wartime evaders, hundreds of taxpayers throughout
the country had sudden recoveries of memory and poured mil
lions of dollars of additional revenue into Government cof
fers in the 1946 fiscal year, Secretary Snyder revealed today*
The parade of voluntary disclosure cases into collectors’
offices was climaxed by a §2,000,000 payment by a certain
taxpayer, his associates, and his company, accompanied by
admissions of extensive^
payments over a
period of years, |jDuring the year ended June 30, 1946, when
the tax drive was steadily expanding in scope, the Bureau
reported more than 111,000 delinquent or amended returns
filed, a substantial portion of which are believed to have
been inspired directly by the campaign against evaders.
The
additional taxes, involved in'these disclosures was §170,000,000.
In addition to the roundup of money due the Government
conducted by Revenue Agents, the Intelligence Unit, and
Collectors’ forces, Commissioner Joseph D. Uunan, Jr., reported
that another Bureau Unit, Alcohol Tax, of which Carroll E.
Mealey is head, continued its effective work against black
market violators of laws within its jurisdiction.
TREASURY DEPARTMENT
Washington
FOR I M M E D I A T E R E L E A S E
W e d n e s d a y , A u g u s t 7, 1946
Press Service
N 0o S - 4 5
S t i m u l a t e d by the T r e a s u r y ’s drive a g a i n s t b l a c k m a r k e t
and other w a r t i m e evaders, h u n d r e d s of t a x p a y e r s t h r o u g h o u t
the co u n t r y h a d s u d d e n recoveries of m e m o r y a nd p o u r e d m i l
lions of d o l l a r s o f a d d i t i o n a l revenue into ¡Government coffers
in the 1946 fiscal year, S e c r e t a r y S n y d e r r e v e a l e d today.
The p a r a d e o f v o l u n t a r y d i s c l o s u r e cases into c o l l e c t o r s ’
o f fices was climaxed b y a 1 2 ,0 0 0 ,0 0 0 p a y m e n t b y a c e r t a i n t a x
payer, his a ssociates, and his company, a c c o m p a n i e d b y a d m i s
sions o f e x t ensive j u g gling on tax p a y m e n t s over a period of
years.
L u r i n g the y e a r e n ded June 30, 1946, w h e n . t h e tax d r ive
s t e a d i l y e x p a n d i n g in scope, the B u r e a u r e p o r t e d m ore than
1 1 1 ,0 0 0 d e l i n q u e n t or a m e n d e d returns filed, a subs t a n t i a l
p o r t i o n of w h i c h are b e l i e v e d to h ave b e e n i n s p i r e d d i r e c t l y
b y the c a m p a i g n a g a i n s t evaders.
The a d d i t i o n a l taxes Involved
m
these d i s c l o s u r e s was $ 1 7 0 , 0 0 0 , 0 0 0 .
was
In a d d i t i o n to the ro u n d u p of m o n e y due the G o v e r n m e n t
c o n d u c t e d b y Revenue Agents, the I n t e l l i g e n c e Unit, and C o l
l e c t o r s ’ forces, C o m m i s s i o n e r J o s e p h D. Nunan, Jr., re p o r t e d
that a n o t h e r B u r e a u Unit, A l c o h o l Tax, o f w h i c h C a rroll E.
M e a l e y is head, c o n t i n u e d its e f f e c t i v e w o r k a g a inst b l a c k
m a r k e t v i o l ators of laws w i t h i n its jurisdiction.
As a f t e r m a t h of the U n i t fs 1 9 4 3 - 1 9 4 4 d r ive that smashed
the b l ack m a r k e t in d i s t i l l e d spirits, the 1946 fiscal y e a r
p r o d u c e d ^127 a d d i t i o n a l i n d i c t m e n t s , snd 85 persons were c o n
victed. M a n y oi these cases w e r e p e r f e c t e d in c o o p e r a t i o n
w i t h the O f f i c e o f Price A d m i n i s t r a t i o n .
.
W o r k i n g w i t h the same agency, the Unit h e l p e d to s m a s h
w i d e s p r e a d d i v e r s i o n of c r i t i c a l l y scarce s u gar into Illicit
d i s t illing, p a r t i c u l a r l y in several s o u t h e r n states.
One.
h u n d r e d f o r t y - t h r e e persons were c o n v i c t e d in this drive and
827 m e r c h a n t s w e r e s u s p e n d e d f r o m trading in sugar.
L a r g e l y as a r e sult of this drive, i l licit d istilling,
as m e a s u r e d b y m a s h a n d still seizures, d e c l i n e d s h a r p l y as
c o m p a r e d w i t h 1945.
%
The A l c o h o l Ta x U n i t w o r k e d c l o s e l y w i t h the I n t e l l i g e n c e
Unit, w h i c h is l o o k i n g into the tax l i a b i l i t i e s of the liquor
racketeers.
2
In c o n j u n c t i o n w i t h the e x p a n d i n g activities, o f its
agents a s s i g n e d to the i n v e s t i g a t i o n o f tax law,,violations
in v o l v i n g fraud, the B u r e a u turn e d in its first b i l l i o n
d o l l a r fiscal year in h i s t o r y in taxes and p e n a l t i e s recom*
m e n d e d for a s s e ssment over and above original pa y m e n t s by
taxpayers.
The total of suc h a d d i t i o n a l p o t e n t i a l revenue
was |>1,275,000,000, o f w h i c h |l, 1 0 2 , 0 0 0 , 0 0 0 r e p r e s e n t e d
income a n d excess p r o fits tax a d j u s t m e n t s recommended.
For
1945, the total was C 9 2 2 , 0 00,000.
The I n t e l l i g e n c e Unit, h e a d e d b y W* H. Woolf, w h i c h
h a n d l e s cases i n v olving a p p a r e n t fraud, h ad more than 2,000
cases u n d e r i n v e s t i g a t i o n d u r i n g the year, and, w i t h effects
of the tax drive and add i t i o n a l p e r s o n n e l just b e c o m i n g a p
parent, re p o r t e d indi c t m e n t s a g a i n s t 146 persons d u r i n g the
year, and c o n v i c t i o n o f 149 p e r s o n s out of 155 g o i n g to
trials.
The | 2 , 0 0 0 , 0 0 0 p a y m e n t m a d e u n d e r a c l a i m of v o l u n t a r y
d i s c l o s u r e is b e l i e v e d to be the l a r g e s t ’’c o n s c i e n c e p a y m e n t ”
of Its kind in the h i s t o r y o f the B u r e a u of Internal Revenue.
It is the p o l i c y of the. T r e a s u r y to a s s e s s civil penalties,
rather than to r e c o m m e n d c r i m i n a l action, ag a i n s t taxpayers
who come In before an i n v e s t i g a t i o n into their a f f airs has
b e e n i n s t i t u t e d and v o l u n t a r i l y admit t h eir d e l i n q u e n c i e s .
T he t a x p a y e r a p p e a r e d to p r e f e r this route rather than
risk be ing e n s n a r e d b y t h e e ver e x p a n d i n g tax-drive. B u r e a u
officials said he ha d p l e n t y of company, as ’’chain r e a c t i o n ”
d i s c l o s u r e s came in m a n y sections of the c o u n t r y w i t h the
i n s t i t u t i o n o f i n v e s t i g a t i o n s o f i n d i v i d u a l s and firms o p e r
ating in suc h fields as textiles, funs, r e a d y - t o - w e a r goods,
p o u l t r y and meats*
oOo
V
STATÜTOBY DEBT LIMITATION
.. a s o e ü n " , .Ï W 5 ...
n, /. . V. /JÈ)
^
/«>/
/y I Y H
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), wshall not exceed in the
aggregate $275 *000,000,000 outstanding at any one time, for purposes of this section
the current redemption value of any obligation issued on a discount basis which is
redeemable prior to maturity at the option of the holder shall be considered as its
face amount. n
I gg
(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 July 31» 19*46
Obligations issued under Second Liberty Bond Act, as amended
Interest-bearing
Treasury bills....... .
$ 17*023,001,000
Certificates of indebtedness....
37*719*535*000
Treasury notes...........
20.020,015,800 $ 7*4,762,551,800
Bonds
Treasury.
119,322,902, *450
Savings (current redemp. value) *49,319,636,5*4*4
Depositary................ .
..... 410,18*4,500
$275,000,000,000
1 6 9 ,05?, 7 2 3 , ^
Special funds
Certificates of indebtedness..
10,9*49*500,000
Treasury notes..... ...........
12,095*517*000
__
23.0*45.017.000
292
,29*4
Total interest-bearing. .... .
266 js860
6oj,2
9 2 ,29*4
307,0*42,250
Matured, interest-ceased............••••......
Bearing no interest
War savings stamps..............
91,988,106
Excess profits tax refund bonds._______ 50*110*266 _____ lU2.oqS.-372
______
Total.......................... .................... 2 6 7 ,30 9,4 3 2 ,9 16
Guaranteed obligations (not held by Treasury)
Interest-bearing
Debentures: E.H.A. .............
*42,6*42,736
Demand obligations: C.C.C. .....
Matured, interest-ceased...........................
i
,281,3*42,885323*985*621
.......9.2*42,200
333,227,821
Orand total outstanding............ ....... ....... ............
Balance face amount of obligations issuable under above authority........
267.6*42,660,737
7*357*339,2o3
Eeconeilement with Statement of the Public Debt - July 3 1 , 19^6
(Daily Statement of the United States Treasury, Aug. 1, 19*46)
Outstanding July 3 1 » 19*46
Total gross public d e b t .... .................................... .
268,270,022,261
Guaranteed obligations not owned by the Treasury............... .
333.227*821
Total gross public debt and guaranteed obligations ....•••••.....
26$,063 ,250,0$£
Deduct - other outstanding public debt obligations
not subject to debt limitation ................... .............. .....960*589 * 3*45
267* 6*42,660,73|5 - 4 « /
BMThomas/MC
8/2/46
M V
STATUTORY .DEBT LIMITATION
AS OF JULY 31, 1946 .
August 7, 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 Unite’d States (except such
guaranteed obligations as may be held by the Secretary: of the Treasury), ushall not
exceed in the aggregate (¿275*000,000,000 outstanding at any one time. For purposes
of this section the current redemption value of any obligation issued on a discount
basis which is redeemable prior to ma turd ty at the option of the holder shall be
considered as its face amount.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
$275*000,000,000
Outstanding July 31* 1946
Obligations issued under Second Liberty Bond Act, as amended
Interest-bearing
Treasury bills............... $ 17*023*001,000
Certificates of indebtedness..
37,719*535*000
Treasury notes*....... ..
20,020,015.800 $ 74*762,551*800
Bonds
Treasury.............
119*322,902,450
Savings (current ledemp.value) 49*319*636,544
Depositary... ...............
410.184.500
Special Funds
Certificates of indebtedness. 10,949*500,000
Treasury notes..............
12,095.517.000
Total interest-bearing................. .
Matured, interest-ceased........ ................
Bearing no interest
War saving s stamps........ ... •.
91*988,106
Excess profits tax refund bonds.
50.110,266
Total....... ................... *...............
Guaranteed obligations (not held by Treasury)
Interest-bearing
Debentures: x:•11»A. ...........••*
42,o42, /36
Demand obligations: C.C.C. .....
28.1,342,885
Matured, interest-ceased........................
169,052,723,494
23,045,017,000
266,860,292,294
307*042,250
142,098,372
267,309,432,916
323,985,621
______9,242,200
333.227,821
Grand total outstanding........ ...................
•...... ........267.642,660,737
Balance face amount of obligations issuable under above authority...... 7,357,339.263
Reconcilement with Statement of the Public Debt - July 31* 1946
(Daily Statement of the United States Treasury,. Aug. 1, 1946)
Outstanding July 31* 1946
Total gross public debt ............................. .............. 268,270,022,261
Guaranteed obligations not owned by the Treasury ...... ...........
333.227.82]
Total gross public debt arid guaranteed obligations .......... .
268 ,603*250,082
Deduct - other outstanding public debt obligations
not subject to debt limitation........ ................. ••
960,589.345
267.642,660,73r
- 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
iricome 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.X8 , 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.
x x m
Immediately after the closing hour, tenders will be opened at the Federal
Reserve Banks and Branches, following which public announcement 7:ill 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
August.
19)i6____ #
jpgt
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
I4.2 and 117 (a) (1) of the Internal Revenue Code, as amended by Section ll£ 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
H Z M
TREASURY DEPARTAIENT
Washington
i -
FOR RELEASE, MORNING NEWSPAPERS,
Friday, August 9, 19U6_____
The Secretary of the Treasury, by this public notice, invites tenders for
$ 1«300«000«000 3 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.
November lli.
19k6
August 15. 19li6_____
,
and
3 when the face amount Trill 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. August 12, 19U6
TST"
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
F O R RELEASE, M O R N I N G N E W S P A P E R S ,
Friday, A u g u s t 9, 1946.
Press S e r v i c e
No* S-4 5
•. T h e ' S e c r e t a r y of the T r e a s u r y , b y t h i s publ i c notice,
invites 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 -day
T r e a s u r y bills, to be" issued- on a d i s c o u n t b a sis u n d e r c o m
p e t i t i v e and f i x e d ^ p r i c e b i d d i n g as h e r e i n a f t e r pro v i d e d *
The bills 'of- this series w i l l ' b e d a t e d A u g u s t 15, 1946, and
w i l l m a t u r e N o v e m b e r 14, 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,- and in* d e n o m i n a t i o n s of § 1 , 0 0 0 , $5,000, $ 1 0 , 0 0 0 , $100,000,
$50 0 , 0 0 0 , a n d $ 1 , 0 0 0 , 0 0 0 (-maturity value)*
T e n d e r s wil l be r e c e i v e d at F e d e r a l Reserve. B a n k s and
B r a n c h e s u p to. the c l o s i n g hour,' two o r c l o c k 'p.m*, E a s t e r n
S t a n d a r d time, Monday, A u g u s t 12, 1946*
Te n d e r s wil l h o t be
r e c e i v e d a t the T r e a s u r y D e p a r t m e n t , W a s h i n g t o n .
E a c h tender
m u s t be :for an e v e n m u l t i p l e of $1,000, and the p r ice of f e r e d
m u s t be e x p r e s s e d on t h e ’ b a s i s of 100, w i t h n o t m ore 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 m a d e on *the p r i n t e d forms a n d f o r w a r d e d
in t h e special e n v e lopes w h i c h will be s u p p l i e d b y F e d e r a l R e
serve B a nks 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 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 and t r u s t com p a n i e s 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 l e r s -in i n v e stment s ecurities*
T e n d e r s f r o m others m u s t be
a c c o m p a n i e d b y p a y m e n t of 2 p e r c e n t of the face a m o u n t of
T r e a s u r y b i l l s a p p l i e d for, u n l e s s the te n d e r s 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 pa 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 c l o s i n g hour, 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 B a nks an d B r a n c h e s , f o l l o w i n g w h i c h publi
a n n o u n c e m e n t w i l l be m a d e b y the S e c r e t a r y 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 submitting
t e n ders 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 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 re s e r v e s the right to
a c c e p t or r e j e c t a n y or all tenders, in w h o l e or in part-, and
his a c t i o n In a n y s u c h r e s p e c t shall be final.
S u b j e c t to
these re s e r v a t i o n s , t e n ders 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 e n t e r e d on a f i x e d - p r i c e b a s i s wil l be a c c e p t e d
in full*
Payment of a c c e p t e d t e n ders at the p r ices o f f ered
m u s t be m a d e or c o m p l e t e d at the F e d e r a l R e s e r v e B a n k in c ash
or other i m m e d i a t e l y a v a i l a b l e funds on A u g u s t 15, 1946*
(Over)
- 2 -
The income d e r i v e d f r o m T r e a s u r y b i l l s , w h e t h e r interest
or g a i n from, the sale or o t her d i s p o s i t i o n of the bills, shall
not have a n y exemption, as such, a nd l o s s ' f r o m the's a l e or
o t her d i s p o s i t i o n of T r e a s u r y bills shall not h a v e a ny special
treatment, as such, under. F e d eral tax Acts n o w or h e r e a f t e r
enacted.
The b i l l s shall be s u b ject to estate, inheritance,
gift, or o t h e r excise taxes* w h e t h e r Federal o r , S tate, 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 b y a n y State, or an y of the
p o s s e s s i o n s o f the U n i t e d States, o r b y ,any local taxi n g a u t h
ority.
For pur p o s e s of t a x a t i o n * t h e amount of d i s c o u n t at
w h i c h T r e a s u r y bills ar.e originally, 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 43 and
117 (a) (1) of the Internal R e v enue Code, as a m e n d e d by S e c t i o n
115 of the Revenue Act of 1941, the a m o u n t of d i s c o u n t at w h i c h
b i lls issued h e r e u n d e r are sold shall not b,e c o n s i d e r e d to
a c c r u e u n t i l 'duch b i lls shall be sold, r e d e e m e d or o t h e rwise
d i s p o s e d of, and 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 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 t h a n life i n s u rance companies) issued h e r e u n d e r n e e d in
clude in his income tax r e t u r n onl y the d i f f e r e n c e ,between the
price paid *for 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 equent p u r c hase, and the amount a c t u a l l y r e c e i v e d eith 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
n o t i c e , p r e s c r i b e the t e rms of the T r e a s u r y bills, and g o v e r n
the con d i t i o n s of t h eir issue .' C o p i e s of the c i r c u l a r ' m a y be
o b t a i n e d f r o m a n y Federal R e s e r v e B a n k or Branch.
oOo
2
M a i n -Treasury B u i l d i n g m i g h t be ”1 2 7 ” .
A n y o n e in G o v e r n m e n t
in W a s h i n g t o n w i s h i n g to c a l l -Main T r e a s u r y s i m p l y w o u l d
d i a l "127" a n d be c o n n e c t e d a u t o m a t i c a l l y to a t e l e p h o n e
o p e r a t o r there.
Thus
it w i l l be v i r t u a l l y as f a s t to call
a n y a g e n c y in the G o v e r n m e n t as
it is to call a n o t h e r e x t e n s i o n
w i t h i n a n agency.
A t present,
i n t e r - a g e n c y calls a re h a n d l e d e i t h e r by the
”8 0 ’*, or " G o v e r n m e n t "
p a i r s of a g e n c i e s .
handling,
error.
s w i t c h b o a r d , or by d i r e c t lines b e t w e e n
The f i r s t m e t h o d i n v o l v e s
two-operator
t w ice as m u c h time a n d t w i c e t he p o s s i b i l i t y of
The s e c o n d m e t h o d i n v o l v e s
d i a l i n g a code n u m b e r to
be c o n n e c t e d d i r e c t l y to the o p e r a t o r of t he c a l l e d agency.
B u t since m o s t a g e n c i e s do n o t h a v e t h e v o l u m e of calls
warrant,
economically,
d i r e c t lines
to
to a l l o t h e r agencies,
t his s y s t e m p r o v i d e s o n l y p a r t i a l " c o v e r a g e ” w h i c h m u s t be
s u p p l e m e n t e d b y the " G o v e r n m e n t ” board.
C o m b i n i n g the a d v a n t a g e o u s f e a t u r e s
systems,
of b o t h exi s t i n g
t h e a u t o m a t i c c e n t e r w h e n p l a c e d into o p e r a t i o n w i l l
r e p l a c e the "80"
b o a r d as w e l l as m o s t of the d i r e c t lines.
oOo
TREASURY DEPARTMENT
Washington
PROPOSED PRESS R E L E A S E
s>-1
S e c r e t a r y S n y d e r a n n o u n c e d t o d a y U n c l e S a m's t e l e p h o n e
b i l l w i l l be c ut m o r e than $ 7 5 , 0 0 0 a n n u a l l y as t he r e s u l t of
t he f o r t h c o m i n g i n s t a l l a t i o n of a n e w a u t o m a t i c t e l e p h o n e
s y s t e m e x p e c t e d to be c o m p l e t e d in e a r l y 1947.
The n e w i n s t a l l a t i o n w i l l s e r v i c e G o v e r n m e n t i n t e r - a g e n c y
calls in the D i s t r i c t of C o l u m b i a .
R e s u l t of a s t u d y by engineers
of the P r o c u r e m e n t D i v i s i o n
of the D e p a r t m e n t a n d the c o o p e r a t i o n of the l o c a l t e l e p h o n e
company,
the n e w s y s t e m has been a p p r o v e d by a l l G o v e r n m e n t
a g e n c i e s a f f e c t e d a n d an o r d e r f o r its i n s t a l l a t i o n was p l a c e d
w i t h the Chesapeake and Potomac
T e l e p h o n e C o m p a n y on J u l y 26,
1946.
B e s i d e s r e d u c i n g the t e l e p h o n e b i l l of the G o v e r n m e n t in
the D i s t r i c t of Col u m b i a ,
and. m o r e
the n e w s y s t e m w i l l p r o v i d e f a s t e r
e f f i c i e n t s e r v i c e a n d w i l l be m o r e f l e x i b l e of
o p e r a t i o n tha n
It d i f fers
of p r o v i d i n g
e x i sting
in s e v e r a l m a j o r r e s p e c t s f r o m p r e s e n t m e t h o d s
i n t e r - a g e n c y t e l e p h o n e service.
Each department
or a g e n c y n o w h a v i n g a t e l e p h o n e s w i t c h b o a r d w i l l be a s s i g n e d
a three#-«digib code,
the d i a l i n g of w h i c h f r o m a n y o t h e r a g e n c y
w i l l c o n n e c t t he two.
F o r example,
the code a s s i g n e d to the
TREASURY DEPARTMENT
Washington
FOR I M M E D I A T E RELEASE,
Friday, August 9, 1946
Press S e r vice
No. S-46
S e c r e t a r y Snyder a n n o u n c e d today U n c l e S a m T s telephone
bil l w ill be cut more than $ 7 5 , 0 0 0 a n n u a l l y a,§ the result of
the f o r t h c o m i n g I n s t a l l a t i o n of a n e w automatic, telephone
s y stem e x p e c t e d to be c o m p l e t e d in e a r l y 1947.
'The n e w i n s t a l l a t i o n w i l l s e rvice G o v e r n m e n t
calls in the D i s t r i c t o f Columbia.
inter-agency
Result of a study by e n g i n e e r s of the P r o c u r e m e n t D i v i s i o n
of the D e p a r t m e n t and the c o o p e r a t i o n of the local tele phone
company, the n e w s y s t e m has b e e n a p p r o v e d b y all G o v e r n m e n t
ag e n c i e s a f f e c t e d an d an o r d e r for its i n s t a l l a t i o n w a s p l a c e d
w i t h the C h e s a p e a k e and P o t omac T e l e p h o n e C o m p a n y on J uly 26,
1946.
B e s i d e s r e d u c i n g the telephone b i l l of the G o v e rnment ln
the D i s t r i c t of Columbia, the n e w s y s t e m w i l l p r o vide f a s t e r
and m o r e e f f i c i e n t service and wil l be m o r e flexible of o p e r
a t ion than existing ones.
It d i f f e r s in several m a j o r respe c t s fro m present m e t h o d s
of p r o v i d i n g i n t e r - a g e n c y t e l e p h o n e service.
Each department
or a g e n c y n o w h a v i n g a telephone switchboard, will b e a s s i g n e d
a t h r e e - d i g i t code, the d i a l i n g of w h i c h f r o m any o t h e r a g e n c y
w i l l c o n nect the two.
For example, the code as s i g n e d to the
M a i n T r e a s u r y B u i l d i n g m i g h t be "127".
A n y o n e in G o v e r n m e n t
in W a s h i n g t o n w i s h i n g to call M a i n T r e a s u r y s i m p l y w o u l d dial
"127" and be c o n n e c t e d a u t o m a t i c a l l y to a telephone o p e r a t o r
there.
Thus it will be v i r t u a l l y as fast to call a n y a g e n c y
In the G o v e r n m e n t as it is to call a n o t h e r e x t e n s i o n w i t h i n
an a g e n c y .
At present, i n t e r - a g e n c y calls are h a n d l e d e i t h e r b y the
"80" o r " G o v e r n m e n t " switchboard, or b y d i r e c t lines b e t w e e n
pairs of a g e n cies.
The first m e t h o d involves t w o - o p e r a t o r
h a n d l i n g , twice as m u c h time and twice the p o s s i b i l i t y of error.
The seco n d m e t h o d invol ves d i a l i n g a code n u m b e r to be connected
d i r e c t l y to the o p e r a t o r o f the c a l l e d agency.
But since m o s t
a g e n c i e s do not h ave the volume of calls to warrant, e c o n o m i c
ally, d i r e c t lines' to all o t h e r a g e ncies, this s y s t e m pr o v i d e s
o n l y pa r t i a l " c o v erage" w h i c h m u s t be s u p p l e m e n t e d b y the
" G o v e r n m e n t " board.
C o m b i n i n g the a d v a n t a g e o u s f e a t u r e s of b o t h e x i s t i n g
systems, the a u t o m a t i c center w h e n placed into o p e r a t i o n will
r e p lace the "80" b o a r d as well as m o s t of the direct lines.
oOo
THEASORX D S P m m a
Washington
FOI RELEASE, m S M i m MmSPAPmS,
Servie*
Tuesday, August 13» I9fa6»
¡¿—
y~- ^7
fba Secretary of the Treasury announced last svening that the tenors for
$1,300,000,000, or thereabout«, of 9X~day Treasury bills to be dated August 1$ and to
nature Bovesfcer
Ik,
1946, which were offered <m August
9$ W#$
« »
opened at the Federal
Reserve Banks on August It*
The d etails of th is Issus are as fo lla s si
Total applied for - $1, 816,1*81*,GQQ
Total accepted
- 1, 313, 714,000
Average pries
(includes $38,161,000 entered on a fixed-price J
f§|
basis at 99*905 and accepted in fu ll)
discount
approx.
0
*
376
$
per
anmm
- 99*909/ S u ivaien t rate of
Bange of accepted competitive bids*
8 iÉÉi
Loe
- 99.908 Equivalent rate of discount approx. 0.364$ per annua
- 99.905
•
«
»
»
•
0*376$ *
*
(70 percent of the aaount bid for at the low price was accepted)
Federal Reserve
d istr ic t
Total
Applied for
Total
Accepted
Bestem
hew fork
Philadelphia
Cleveland
Rjehagcaid
Atlanta
Chicago
.$
S t. Louis
Minneapolis
Kansas City
H aH as
San Francisco
f
1
TOTAL
5,785,000
1,339,823,000
21*.21*8,000
11,820,000
15 ,665,000
12 ,830,000
30U , 11*0,000
13 ,560,000
12 ,885,000
19,560,000
13,195,000
1*2,973,000
$1,816,1*31*,000
U ,285,000
958,823,000
19 ,11*8,000
10, 200,000
1 5 ,2 l5 ,o oo
io ,5 3 o ,o o o
215,310,000
10 ,110,000
9,835,000
16 ,290,000
10,1*95,000
33*373.000
$1,313,711*,000
TREASURY DEPARTMENT
Washington
F OR RELEASE, M O R N I N G N E W S P A P E R S ,
Tuesday, A u g u s t 15', 1946.
Press S e r v i c e
No". S-47
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 t h e r e a b o u t s , of 9 1 - d a y
T r e a s u r y B i l l s to be d a t e d A u g u s t 15 and to m a t u r e N o v e m b e r 14,
1946, w h i c h w e r e o f f e r e d on A u g u s t 9, 1946, w e r e o p e n e d at the
F e deral R e s e r v e B a nks on A u g u s t 12.
The d e t a i l s
T o tal
Total
issue are as follows:
a p p l i e d for - $>1,816,484,000
accepted
1,315,714,000
A v e r a g e price
Range
of this
(includes $ 3 8 * 1 6 1 , 0 0 0 entered
on a f i x e d - p r i c e b a s i s at
9 9 . 9 0 5 a nd a c c e p t e d in full)
- 9 9 . 9 0 5 / E q u i v a l e n t rate of d i s c o u n t a p p r o x 4
0 . 3 7 6 ^ per a n n u m
of a c c e p t e d c o m p e t i t i v e bids:
Hig h - 99.908 Equivalent
L ow
- 99.905
"
(70 pe r c e n t
rate
"
of d i s c o u n t a p p rox.
"
"
"
0 . 3 6 4 $ p er a n n u m
0 . 376
"
"
of the a m o u n t b i d for at the low price was accepted)
Federal Reserve
District
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
S t 4 Louis
Minneapolis
K a n s a s City
Dallas
S a n F r a ncisco
TOTAL
T o tal
A p p l i e d For
Total
A c c e p t e d _______
$
$
5,785,000
1,339,823,000
24.248.000
11.820.000
15.665.000
12.830.000
304,140,000
13,56*0,000
12,885’
, 000
19.560.000
13.195.000
42.975.000
$1,816,484,000
oOo
4,285,000
■ 958,823,000
19.148.000
.
10 200.000
15.215.000
10.580.000
215,310,000
.
10 110.000
9,88.5,000
16.290.000
10.495.000
53.575.000
$1,313,714,000
-
2
-
Each of these refunds, Commissioner Nunan explained, was paid subject to
adjustment after audit of the returns#
R?actically all of these refunds represent amounts of tax withheld from
taxpayers* wages in excess of their actual tax liability as shown by their
annual income tax returns.
Such excess withholding usually results from
temporary unemployment and therefore the 1945 refunds were swollen by industrial
cutbacks, reconversion, demobilization and similar war-end events which caused
millions of persons to have only part^ear civilian employment•
;®
- 0 -
I
TREASURY DEPAETffflP
) \_£-----
—-y
Bureau of Internal Revenue
^ r/ ^¿Washington 25, D. C.
-
/ S ^
Joseph D. Nunan, Jr«, Commissioner of Internal Revenue, announced today the
payment of refunds due individual taxpayers on their 1945 income tax returns was'
completed this year (except on a small percentage of erroneous returns) in record
Approximately 30,750,000 individuals received refunds totalling #1,400,000,000.
Certification of these refunds was completed by local offices of the Collectors
of Internal Revenue prior to July 4, hut announcement of the fact was held up to
ensure ample time for the actual writing and mailing of the checks by the Dis
bursing offices of the Treasury Department*
Individuals who still have not
received their refunds are requested tp- wait a reasonable length of time before
inquiring from the collectors with whom ;fcheir returns were filed*
'"This record," Commissioner Nunan commented, "represents achievement of the
goal we set ourselves early this year to speed up refunds as much as possible for
the double purpose of serving the convenience of the taxpayers and of saving
interest charges to the government.
Each of the collector's offices throughout
the country is to be congratulated for its part in this huge task."
By law, the Treasury is required to pay interest at the rate of 6 per. cent
per year on refunds.
The saving in interest by speeding up the refunding operation
is indicated in the following table:
1943
1944
1945
^otal number of individual
income tax returns filed
43,650,000
46,000,000
47,000,000
number of refunds paid
16,000,000
22,000,000
30,250,000
amount of refunds paid
#587,000,000
#1,000,000,000
#1,400,000,000
Time used to complete
refunds (from March 15)
Interest paid on refunds
1 year
#2 2 ,000,000
7 months
#17,000,000
3o- months
#4,600,000
TREASURY DEPARTMENT
B u r e a u of-'Internal R e v e n u e
W a s h i n g t o n 2.5, D, C.
FOR RELEASE, M O R N I N G N E W S P A P E R S ,
Thursday, A u g u s t 15, 1946._______
Press S e r vice
No» S-48
J o s e p h D. Nunan, Jr*, C o m m i s s i o n e r of Internal Revenue, a n
n o u n c e d today the p a y m e n t 'of re f u n d s due ind i v i d u a l t a x p ayers on
their 1045 income tax returns was c o m p l e t e d this y e a r (except on
a small p e r c e n t a g e of e r r o n e o u s returns) in r e c d r d time a n d at
a saving of m a n y m i l l i o n s of d o l l a r s in interest charges.
A p p r o x i m a t e l y .30,250,000 i n d i v i d u a l s re c e i v e d r e f u n d s t o t a l
ling $ 1 , 4 0 0 , 0 0 0 , 0 0 0 ,
C e r t i f i c a t i o n o f these refunds was co m p l e t e d
b y local offices of the C o l l e c t o r s of Internal R e v e n u e p r i o r to
July 4, b ut a n n o u n c e m e n t of the fact was h e l d up to e n sure ample
time for the actu a l w r i t i n g and m a i l i n g of the checks by the D i s
b u r s i n g offices of the T r e a s u r y D e p a r t m e n t ,
I n d i v i d u a l s w h o still
have not r e c e i v e d t h e i r r e f unds are r e q u e s t e d to w ait a r e a s o n a b l e
l e n g t h of time b e f o r e i n q u i r i n g from the c ollectors w i t h w h o m their
returns w e r e filed,
”This r e c o r d , ” C o m m i s s i o n e r N u n a n commented, ’'represents ac h i e v e m e n t of the goal we set o u r s e l v e s e a r l y this y e a r to speed
up re f u n d s as m u c h as p o s s i b l e for the d o u b l e p u r p o s e of serving
the c o n v e n i e n c e of the t a x p a y e r s a nd of saving interest charges
to the Gove r n m e n t ,
E a c h of the c o l l e c t o r ’s offices t h r o u g h o u t
the c o u n t r y is t o b e c o n g r a t u l a t e d for its part in this h u g e t a s k , ”
B y law, the T r e a s u r y is r e q u i r e d to pay interest at the rate
of 6 per cent pe r y e a r on refunds.
T h e saving in interest b y s p e e d
ing up the r e f u n d i n g o p e r a t i o n is i n d i c a t e d in the f o l l o w i n g t a b l e s •
1 943
1944
Total n u m b e r of i n d i v i d
ual income tax returns
filed
43,650,000
46.000.
000
47,000,000
N u m b e r of r e f u n d s
paid
16,000,000
22.000.
000
30,250,000
of r e f u n d s paid
| 5 8 7 ,0 0 0 ,0 0 0
Amount
T i m e u s e d to co m p l e t e
refunds (from M a r c h 15)
I n t erest paid
on r e f u n d s
1 year
{22,000,000
(Over)
f 1 ,0 0 0 ,0 0 0 ,0 0 0
7 months
$17,000,000
$ 1 ,4 0 0 ,0 0 0 ,0 0 0
3s; m o n t h s
$4,600,000
- 2
pai d
E a c h of these refunds, C o m m i s s i o n e r N u n a n explained,
subject to a d j u s t m e n t a f t e r audit of the returns.
was
P r a c t i c a l l y all of these re f u n d s rep r e s e n t am o u n t s of tax
w i t h h e l d f r o m t a x p a y e r s 1 w a g e s in excess of their actual tax
l i a b i l i t y as s h o w n by t h e i r annu a l income tax returns*
Such ex*
cess w i t h h o l d i n g u s u a l l y results f r o m t e m p o r a r y u n e m p l o y m e n t and
t h e r e f o r e the 1 9 4 5 r e f u n d s were s w o l l e n b y i n d u strial cutbacks,
reconversion,, d e m o b i l i z a t i o n and s i m i l a r w a r - e n d events w h i c h
caused m i l l i o n s of p e r s o n s to hav e o n l y p a r t - y e a r c i v i l i a n e m p l o y
ment
0O0
{$§& Joeefck Greenimrg
Joseph Greenberg
Assistant Coamlssioner of Accounts
CC toi
HHaud
Mr* Heffelfinger
Mr. Sh&effer
Miss Sanford
TREASURY DEPARTMENT
Washington
FOR I M M E D I A T E R E L E A S E
W e d n e s d a y , A u g u s t 15, 1946
During
in d i r e c t
Treasury
the m o n t h of July,
a nd g u a r a n t e e d
investment
■•• ; \■ | M
Press S e r vice
No. S-49
:.
1946, m a r k e t
securities
of the G o v e r n m e n t
and other ac c o u n t s
It ■% : l ■ 1
sales of $ 1 5 7 , 8 0 8 , 0 0 0 ,
transactions
re s u l t e d
. Î t|ij % ill ' ■"■ ‘
in net
|; .x :j| \yy £ 11 - I
Secretary Snyder announced
oOo
for
today.
FOR IMMEDIATE RELEASE
August 13» 19^6
/
nt
The Bureau of Customs announced today preliminary figures shoving the imports
for consumption of commodities within quota limitations provided for under trade
agreements, from the beginning of the quota periods to August 3» 1 9 ^ » inclusive,
as follows:
•
♦Commodity
:
Established Quota
:Period and Country: Quantity
{Imports as of
Unit
of
sAugust 3»
19*46
Quantity :
Whole milk, fresh
or sour
Calendar Tear
3 ,000,000
Gallon
6,2*42
Cream, fresh or sour
Calendar Tear
1 ,500,000
Callon
1>72
Fish, fresh or frosen
filleted, etc,, cod,
haddock, hake, pollock,
cusk, and rosefish
Calendar Tear
20,380,72*4
Pound
Quota filled
90,000,000
60,000,000
Pound
Pound
Quota filled
1,073,390
White or Irish potatoes:
12 months from
Sept. 15, 19>»5
certified seed
other
Cuban filler tobacco vu&*
stemmed or stemmed (other
than cigarette leaf tobacco)
Calendar Tear
and scrap tobacco
2 2 ,000,000
Red cedar shingles
Calendar Tear
1,396,^3
Square
818,877
Molasses and sugar sirups
containing soluble non*
sugar solids equal to more
than 6# of total soluble
solids
Calendar Tear
1 ,500,000
Gallon
269 ,18 6
Silver or black foxes,
furs, and articles: Foxes
valued under $250 each
and whole furs and skins
May-Nov. 19*46
All countries
6 7 ,0 12
Number
20,693
Tails
Paws, heads or other
separated parts
Piece plates
Articles, other than
piece plates
12 months from
Dee. 1, 19^5
Pound
(unstemmed Quota
equivalent)
filled
5,000
Piece
H
500
Pound
1*90
It
550
Pound
—
M
500
Unit
ss
TREASURY DEPARTMENT
Washington
Press Service
No. S-50
FOR IMMEDIATE RELEASE
Wednesday, August 14. 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 August 3, 1946, inclusive,
as follows:
•
•
:Imports as c.
Unit
•
of
:August 3,
Established Quota
:
Commodity
:
•Period and Country: Quantity : Quantity :
1946
Whole milk, fresh
or sour
Calendar Year
3,000,000
Gallon
6,242
Cream, fresh or sour
Calendar Year
1,500,000
Gallon
1,472
Fish, fresh or frozen
filleted, etc., cod,
haddock, hake, pollock,
cusk, and rosefish
Calendar Year
20,380,724
Pound
Quota fillet
90,000,000
60,000,000
Pound
Pound
Quota fillet*
1,073,390
White or Irish potatoesi
12 months from
Sept. 15, 1945
certified seed
other
Cuban filler tobacco un
stemmed or stemmed (other
than cigarette leaf tobacco)
Calendar Year
and scrap tobacco
22,000,000
Red cedar shingles
Calendar Year
1,396,423
Square
818,877
Molasses and sugar sirups
containing soluble non
sugar solids equal to more
than
of total soluble
solids
Calendar Year
1 ,500,000
Gallon
269,186
Silver or black foxes,
furs, and articles: Foxes
valued under $250 each
and whole furs and skins
May-No v# 1946
All countries
67,012
Number
20,693
6%
Tails
12 months from
Dec. 1, 1945
Pound
(unstemmed Quota
equivale nt) fille d
Piece
—
490
—
Paws, heads or other
separated parts
u
o
o
ir\
5,000
Pound
Piece plates
u
550
Pound
Articles, other than
piece plates
H
500
Unit
88
-
2
-
COTTON CARD STRIP-S:. made’-from cottons having a staple of less than 1--3/16 inches
in length, COMBER- WASTER LAP WASTE, SLIVER WASTE, AND ROVING WASTE, WHETHER •
OR NOT KANURACTTIEED OR OTHERWISE ADVANCED IN VALUE. Annual quotas''commencing
September 20, by Countries of Origin:
Total quota, provided, however, that not more than 33-1/3 percent Of the quotas
shall be filled by cotton wastes other than-comber wastes made.from cottons
of 1-3/16 inches or more in staple, length in the case of the following
countries: ■TJnited Kingdom, Prance, Netherlands, •Switzerland, Belgium,
Germany, and Italy:
•
(in Pounds)'
♦
: ESTABLISHED : IMPORTS
Established J TOTAL IMPORTS.
Country of Origin : TOTAL QUOTA ; Sept : 20,, 194
! 33-1/3^ of : Sept. 20, 194!
• to August. 3, 19h$ Total Quota : to Aug.3
1/
9
United Kingdom.....«
Canada..*.**..
Prance....
*
British -India..1
,j *i.*
Netherlands..,, U i• •
Switzerland... * iii ♦*
Belgium.i.... ***ii..
tXcLpclIl*' . i
i• •
China.......... *. i•.
Egypt... ......... i.
4
CtXDd« ♦*■*#••*••• ?••<••••
Gfi-rma nyr
............
Italy>..**»»»•«•»*••
TOTALS
ij
—
—
■--
4,323,457
239,690
227,420 69,627
68,240
44,388
38,559
341,535
17,322
8,135
6,544
76, 329
21*263
1,441,152
—
.75,807
69,627
22,747
r
14,796
'” .
.
.12,853,
. ..
, .. -,.
—
— .
- ;
5,482,509
69,627
19U6
-
- -y
—
— ■
Included in total imports,- column 2,
-oOo-
25,443
7,088
1,‘599¿'886 •''
f* .
1
FOR IMMEDIATE RELEASE
Aagu&t 139 19k6______
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 auotas. established by-the. President1s.proclamations of Sep.temb.er 5, 1939,
as amended by the proclamations of December 19, 1940, March 31, 1942, and June
29, 1942, during the period September 20, 194!?» to August 3* lRij.6.
COTTON: HAVING- A STAPLE OF LESS THAU 1-11/1-6 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■LINTEES). Annual quotas
commencing September 20, by Countries of Origin;
. . ..
{In Pounds)
:
;
Country of:
Origin 1
_________
Staple length less
; Staple length 1-1/8*'- or more
• than 1-1 /8”
* ';
but less than l-ll/l6'f
: .
•; Imports Sept*:. Established' : Imports Sept.
;Established:20, 1945, to ;
Quota
; 20, 1945, to
;
Quota
’
.August 3 } 19U6 45,656,420 ‘
.August 3, 1
Egypt and the AngloEgyptian Sudan...,,..,
Peru.<.... .............
British India,....... .
China.. *........
Mexico..... .
Brazil,......... .
Union of Soviet
Socialist Republics.,,
Argentina...............
Haiti*... ...........*.,,
Ecuador,>...............
Honduras.,
Paraguay,........... i.,,.
Colombia........ .......
Iraq....... .......
British East Africa.....
Netherlands East Indies.
Barbados....... .
Other British Nest
Indies l/.............
Nigeria....... .
Other British West
Africa 2 / ........ .. .,
Other French Africa.3/..
Algeria and Tunisia.,...
1/
2/
3/
9k6
783,816
247,952
2,003,483
1,370,791
8,883,859
618,723
21*7,952
2,003,1*83
8,883,2$?
618,723
•
31*1*11; 226
•
11 ,015 ,1*62
........
•., ».. .. .
..
- •. ..... .. —
• ••• ■ ....1GG
475,124
5,203
237
9,333
752
871
124
195
2,240
71,388
—
—
—
—
21,321
5,377
-
-
16,004
689
—
-
1
-
14,516,882
11,753,111?
-
—
'
*
•- :.....U,S5l
............... _
... •■•••••
«.
•• * •• .... .. .
—
—
45,656,420
Other than Barbados, Bermuda, Jamaica, Trinidad, and Tobago,
Other than Gold Coast and Nigeria.
Other than Algeria, Tunisia, and Madagascar.
1*2,101,280
TREASURY DEPARTMENT
Washington
Press Service
No. S-51
FOR IMMEDIATE RELEASE
I’fednesday. August 14. 1946
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 President1s 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 August 3, 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 AND CHIEFLY USED IN THE MANU
FACTURE OF BLANKETS AND BLANKETING, AND OTHER THAN LINTERS). Annual quotas
commencing September 20, by Countries of Origins
(In Pounds)
Country of
Origin
:
Staple length less
s
Staple length 1-1/8” or more
:_______ than l-l/SH
____ ;
but less than 1-11/16” •
:
slmports Sept.? Established?
Imports Sept#
sEstablished:20, 1945, to s
Quota
:
20, 1945, to
;
Quota
sAugust 3.1946s 45«.656.420 ? . August 3,.^946.
Egypt and the AngloEgyptian Sudan...... *
Peru............. ...
783,816
247,952
■Rrn -H .qh T r td i
. . . . . . . . . . 2,003,483
C.h i n f l . _______ . . . . . . . . . . . . . .
1,370,791
Mexico..... ... ........... 8,883,259
618,723
Brazil.................
Union of Soviet
475,124
Socialist Republics...
lxr* a nr) -hin n . _............
5,203
Hai t i . ...... ............
237
H '.m n r l n r . . . . . . . . . . . . . . . . .
9,333
752
Honduras...........................................................
P A r , a cm & v l . . . . . . . . . . . . . . .
871
124
Colnmbja
195
Iraq• t
^ •
R r i f . i q"n
ATT"i p.a.. . . . .
2,240
71,388
Netherlands East Indies,
Barbados .............................
Other British West
21,321
Indies 1/ ..................................................
M4 a n r>1 a . . . . . . . . . . . . . . . . . .
5,377
Other British West
16,004
Africa 2/ ..................................................
689
Other French Africa ¿ A *
Algeria and Tunisia....
14,516,882
31,411,226
11,015,402
247,952
2,003,483
-
8,883,259
613,723
.
100
4,551
-•
—
-
—
-
—
-
-
—
1
11,753,417
45,656,420
1/
Other than Barbados, Bermuda, Jamaica, Trinidad, and Tobago#
y
Other than Algeria, Tunisia, and Madagascar.
42,431,280
2
-
-
COTTON CARD STRIPS made from cottons having a staple of l e s ^ t h m W A 6 inches
in length, COMBER WASTE, LAP WASTE, SLIVER WASTE, AND ROVING WASTE, WHETHER
OR NOT \iANUFACTORED 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 /lo inches or more in staple length in the case of the following
countries: United Kingdom, France, Netherlands, Switzerland, Belgium,
Germany, and Italy:
(In Pounds)
"
* wi- u ,,
Country of Origin:T o m q u o t a
4 ,323,457
239,690
227,420
France. .............
69,627
British India.......
68,240
Netherlands....... *
44,388
Switzerland....... .
38,559
Belgium.............
341,535
Japan...............
17,322
China..... ........ *
8,135
Egypt....... .
6,544
Cuba..... ..........
76,329
Germany........... .
21,263
H o l y ••#••••••♦•••#•
• TOTAL
IMPORTS 7 ESTABLISHED
33-1/3$ of
1,441,152
United Kingdom.....
TOTALS
1/
5,482,509
IMPORTS
:Sept 20 , 1945, !
:to August 3,1946;;
—
69,627
—
—
TT
—
—
—
—
69,627
75,807
22,747
14,796
12,853
25,443
7,088
1,599,886
Included in total imports, column 2.
18
&
-oOo-
■S
POR IMMEDIATE RELEASE,
August* Sffl 19i*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, 1942,
and Apfil 29, 1943, for the 12 months commencing May 29, 1946, as follows:
Wheat
Country
of
Origin
\.
Established
Quota
(Bushels)
Canada
795,000
China
Hungary
Hong Kong
Japan
United Kingdom
100
Australia
i
Germany
100
Syria
100
—
Hew Zealand
Chile
Netherlands
100
Argentina
2,000
Italy
100
Cuba
Prance
1,000
Greece
Mexico
100
Panama
U ruguay
-'
Poland and Danzig
_
Sweden
—
Yugoslavia
Norway
—
—
Canary Islands
Rumania
1,000
Guat emala
100
Brazil
100
Union of Soviet
Socialist Republics
1Q0
Belgium
100
800,000
:
Imports
;May 29, 1946, to
:August 3 f 19it6
(Bushels)
161*
—
—
-V
|
■ -
.'mm
—
■—
—
'—
Wheat flour, semolina,
crushed or cracked
wheat, and similar
wheat nroducts
Established :
Imports
Quota
i May 29, 1946,
: toAug* 3 19i*6
(Pounds)(Pounds)
3
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
-
296,159
—
'
■;*■ ■
■■■—
—
«•
—'
-- Si
—
1*25
—
—
—
T*
-
-
-
16U
4,000,000
296,581*
~o0o<
TREASURY DEPARTMENT
Washington
Press Service
No* S-52
FOR IMMEDIATE RELEASE
Wednesday. August 14. 1946
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 qiotas 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, lor the 12 months commencing May 29, 1946, as follows:
Wheat
Country
of
Origin
Established
Quota
(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
- .
100
—
100
100
—
—
Imports
:
:May 29, 1946, to
:Augu-st 3» 1946
(Bushels)
164
*>*
—
—
—
100
2,000
100
-
—
—
1,000
—
100
—
—
—
1,000
100
100
—
—
—
—
—
—
—
100
100
—
'800,000
I 64
-oOO'
Wheat flour, semolina,
crushed or cracked
wheat, and similar
wheat products
Imports
Established
May 29, 1946, to
Quota
August 3» 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
—
—
296,159
- ■
.
—
—■
■—
—
425
—
—
—
_
m
m
-*
—
4 ,000,000
296,584
?rom 1930 through 1941 Mr. Overby was employed by the
Irving Trust Company In New York City, serving from 1936 to
1941 as Assistant to the Vice President in charge of port
folio investments.
He Joined the Federal Reserve Bank of
New York In January 1942 and served as special assistant to
the Vice Presidents in charge of the international banking
and Investment functions of the institution until October,
1942, when he left the bank to accept a commission in the
United States Army.
T'
■
■
'
)Mr. Overby was discharged from the Army in April of this
year with the rank of Lieutenant Colonel, War Department General Staff Corps.
TREASURY DEPARTMENT
Washington
^ Secretary Snyder today announced the appointment of
Andrew N. Overby, on leave from the Federal Reserve Bank of
New York, as Consultant in the monetary field.
[Mr, p v e r b y wJLll advise Mr. Snyder onflfnrmiil
Î43l
p^HY
Ml1,111,1w"ww”*wmi.hnmr.v.j T?nrffi1gn Sunde1rnsxtyolr
D i f id i n o l i # # Mi
all matters w
deal
aes»
gjuiLHii^rrrnrm
matters
/Mr. Overby Is an Assistant Vice President of the Federal
Reserve Bank of New York where he has been concerned particu
larly with operations of the bank on behalf of the Inter
national Monetary Fund, the International Bank for Reconstruction
and Development, and-the Export-Import Bank of Washington.
^ffr. Overby was born In Cheyenne Agency, South Dakota, on
March 27, 1909.
He attended the University of Minnesota from
1928 to 1928 before transferring to the School of Business,
Columbia University, New York.
in 1930 with the degree of
from It in 1940
He graduated from the latter
and received the degree of MS
TREASURY DEPARTMENT
Washington
FOR RELEASE, M O R N I N G N E W S P A P E R S ,
T h u rsday, August 15» 1 9 4 6 ______
Press Service
No. S -53
S e c r e t a r y S n y d e r today a n n o u n c e d the a p p o i n t m e n t of
A n d r e w N. Overby, on leave f r o m the Federal R e s e r v e B a n k
of N e w York, as C o n s u l t a n t in the m o n e t a r y field.
and
Mr. O v e r b y wil l advise Mr. S n y d e r
f o r eign funds c o n trol matters.
on m o n e t a r y r e s e a r c h
Mr. O v e r b y is an A s s i s t a n t Vice P r e s i d e n t o f the Federal
R e s e r v e B a n k o f N e w Y o r k w h e r e h e ha s b e e n c o n c e r n e d p a r t i c u
l a r l y w i t h o p e r a t i o n s of the B a n k on b e h a l f of the I n t e r n a t i o n a l
M o n e t a r y Fund, the I n t e r n a t i o n a l £>ank 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 E x p o r t - I m p o r t B a n k o f Washington.
Mr* O v e r b y was b o r n in C h e y e n n e Agency, S o u t h Dakota, on
M a r c h 27, 1909.
He a t t e n d e d the U n i v e r s i t y of M i n n e s o t a f rom
1926 to 1928 b e f o r e t r a n s f e r r i n g to the S c h o o l of Business,
C o l u m b i a U n i v e r s i t y , N e w York.
He g r a d u a t e d f r o m the l a t t e r
in 1 9 3 0 w i t h the d e gree of BS, and r e c e i v e d the d e g r e e of MS
f rom it in 1940.
F r o m 1930 t h r o u g h 1941 Mr. O v e r b y was e m p l o y e d b y the
Irving T r u s t C o m p a n y in N e w Y o r k City, serving f r o m 1936 to
1941 as A s s i s t a n t to the Vice P r e s i d e n t in charge of p o r t
folio inves t m e n t s , ; He joined the Federal R e s e r v e B a n k of
N e w Y o r k in J a n u a r y 1942 a n d , s e r v e d as special ass i s t a n t to
the V i c e P r e s i d e n t s in charge of the i n t e r n a t i o n a l b a n k i n g
and investment f u n c tions of the i n s t i t u t i o n u n t i l October,
1942, w h e n he left the b a n k to a c c e p t a c o m m i s s i o n in the
U n i t e d States A m y .
’ V'
Mr. O v e r b y wa s d i s c h a r g e d f r o m the A r m y in A p r i l o f this
y e a r w i t h the rank of L i e u t e n a n t Colonel, W a r D e p a r t m e n t
G e n e r a l S t a f f Corps.
He was a w a r d e d the L e g i o n of Merit., and
the A m y C o m m e n d a t i o n R i b b o n for d i s t i n g u i s h e d m i l i t a r y service.
oOo
/y
SI
¡¡|§!!!
-
2
-
operations, especially the fact that these bonds are all
registered, and may not be sold,, transferred, or used as
security for a lo#a.
0 O0
S e c r e t a r y S n yder said
of the o p e r a t i o n
to t h e Government,
of a n d a c c o u n t i n g
for
be
and
securities.
the
to f a c i l i t a t e
the "bonds at maturity,
d e c i d e d u p o n an i n n o v a t i o n
style of the
that in o r d e r to reduce
costs
p a y ment
the T r e a s u r y h a d
in the m a n n e r o f issuing and
The Armed
the
Forces L e a v e B o nds will
in the f o r m of d i s t i n c t i v e l y d e s i g n e d p u n c h e d cards.
follows
the p a t t e r n o f m o s t T r e a s u r y checks n o w b e i n g
and w ill
enable
the T r e a s u r y
This
issued,
to m e c h a n i z e m a n y o f its a c c o u n t
ing o p e r a t i o n s .
T h r o u g h the u s e o f p u n c h e d - c a r d p r o c e dures,
can
establish accounting
oontrols
and
records
of r e n d e r i n g q u i c k e r service to v e t erans
theft of their b o nds;
pay m e n t s ;
In a d d i t i o n
costs by
volume
to the
the T r e a s u r y e x p e c t s
for
the
purpose
in cas e of loss or
a v o i d i n g or p r o m p t l y d e t e c t i n g erroneous
and r e d u c i n g cl e r i c a l e x p e n s e
ing of such a large
the T r e a s u r y
in h a n d l i n g and proces
o f s e c u r ities.
contemplated
savings
in operations,
to save a b o u t $ 2 2 5 , 0 0 0 in bond
the u s e o f this
d i s t i n c t i v e l y designed,
n e w f o r m of security.
production
However,
p r o t e c t i v e p a p e r w i l l be used,
and
the g e n e r a l d e s i g n of the face of the b o n d w ill be si m i l a r
to that
o f o t h e r securities.
S e c r e t a r y S n y d e r s a i d that this d e p a r t u r e o f the
from the
is s u a n c e of the u s ual
types o f s e c u rities d o e s not
no.oofso-y i l y c o n s t i t u t e a ^precedent.
j
It was p o i n t e d out
¿'orccS'
factors p e c u l i a r to thjfe^bondsie-«*© m ake
p a r t i c u l a r l y s u i t a b l e a n d safe
Treasury
instrument
that
Af/v'c
the
p u n c h e d card a
for Treasury
Secretary Snyder said the Treasury even now is consider
ing the problems relative to cashing the bonds when they
mature.
For the convenience of the veteran, he expects to
make arrangements whereby upon presentation of a matured
bond, and with proper identification, any bank or other
authorized paying agent of the Treasury can make immediate
payment of the face amount and interest.
The Treasury will
furnish the banks and other paying agents with charts to
■or-'cKl
**
+ » fcAe
thee interest payable on each bond.
2
The bonds will be registered only in the name of the
veteran and will bear interest at the rate of
2i%
a year
until maturity, or until the date of payment if payment is
made before maturity.
The bonds will not be payable until
five years from their date, except in the event of the
death of the veteran, in which event the bond may be re
deemed immediately at the request of his survivors,
as
defined in the .Act.
The issue date which will be shown on the bond will be
the first day of the quarter following the date of the par
ticular veteran*s discharge.
The first issue date will be
April 1, 1943, which will mean that the bonds will begin to
mature, at quarterly intervals, on April 1, 1948.
The securities cannot be transferred to anyone else or
pledged as collateral for loans, nor can they be assigned
except to the Administrator of Veterans Affairs in payment
of certain insurance premiums, under such regulations as
the Administrator may establish.
Once such privilege has
been exercised, no further change may be made.
The Secretary stressed the fact that the veterans or
their survivors will receive at maturity or prior payment
of their bonds,
interest at
2i%
a year, or
12^%
for five
years; for example, a veteran holding a $100 bond will re
ceive $112.50 when it matures five years from the date of
issue
TREASURY DEPARTMENT
Washington
Qz&zz/•<.
Lca—
Secretary Snyder announced today that the Treasury
Mfejf has put in motion the machinery necessary for issuing
the G, I. terminal leave bonds under the bill signed by
President Truman.
The bonds will be designated as "Armed Forces Leave Bonds”,
and will bear the portrait of former Secretary of the Treasury
Carter Glass.
The bonds will be turned over to issuing agents of the
Army, Navy and Coast Guard for delivery to veterans after
applications have been received, verified, and approved by
the services.
The principal amount of the bonds will be in multiples
of #25, beginning with $50, with amounts in excess of the
nearest multiple of $25 to be paid by check through the dis
bursing officers of the Army, Navy, and Coast Guard.
Thus,
a veteran entitled to leave pay of $87.50 will receive a $75
bond and a check for $12.50.
Amounts less than $50 will be
paid by check.
It is estimated that bonds will be issued to approxi
mately 15 million veterans,
$2 , 100 , 000 , 000 .
in a total face amount of about
TREASURY DEPARTMENT
Washington
FOR RELEASE, M O R N I N G N E W S PAPERS,
Friday.,
A u g u s t 1,6. 1946.
Press Service
N o ! S -54
S e c r e t a r y S n y d e r a n n o u n c e d today that the T r e a s u r y has
put in m o t i o n the m a c h i n e r y n e c e s s a r y for is s u i n g the G. I.
t e r minal leave bonds u n d e r the b i l l s i g n e d b y P r e s i d e n t
xr u m a n •
Qri,
f ke b o n d s wil l be d e s i g n a t e d as
C a r t e r ^ l a s s 1* ^
"Armed Forces L e ave Bonds",
p o r t r a i t o f f o r m e r S e c r e t a r y of the T r e a s u r y
The b o nds w i l l b e t u r n e d ove r to i s s u i n g agents of the
and Coast G u ard for d e l i v e r y to veter a n s a f t e r a p
p l i c a t i o n s hav e b e e n received, verified, and a p p r o v e d by the
s e r vi c 6s *
^■r ^
h \ Pr<
i nCi pal
of the ^ n d s w i l l be in m u l t i p l e s
Qf $25, b e g i n n i n g w i t h $50, w i t h am o u n t s in excess of the
n e a r e s t m u l t i p l e of $ 2 5 to be paid by c h e c k t h r o u g h the d i s
b u r s i n g o f f i c e r s of the Army, Navy, and Coast Guard,
Thus,
paid b ^ c h e c k 6 ^
t0<*HleaVe p a y of $ 8 7 , 5 0 will r e c e i v e a $7 5
f° r ® 1 2 o 5 °*
A m o u n t s less than $ 5 0 w i l l be
mil'll^!!
f s b i m a t e d ^h a t ^ ° nds w i l l be i s sued to a p p r o x i m a t e l y
3 m i l l i o n veterans, in a total face a m o u n t of about $2,1 0 Q 000,00'
priflT1 P 1® b °nds w i l l be r e g i s t e r e d only in the n a m e o f the veter an ai f w i l 1 b e a r M e r e s t at the rate of
a y e a r until
2b%
******* l*
" o r e ^ u r ! ^ ™ 1 p a y M e n t
if
m a d e befrom
Tb
b o ? d ? " R 1 n o t be P a y a b l e u n til five y e a r s
¡ran
’ e x °®2v R
the e v ent o f the d e a t h o f the vet' „ J l w h i c h event the b o n d m a y be r e d e e m e d I m m e d i a t e l y at
the r e q u e s t of his surv i v o r s , as d e f i n e d in the Act.
the f i r t h ^ f r 8
w h i c h w i l l be s h own on the b o n d w i l l be
viia™f i r ? t d a f o f the q u a r t e r f o l l o w i n g the date of the p a r t i c 1 9 4 ^ Vw h ? rr
C h a r s e * T he f i rst i s sue date w 1 1 1 he A p r i l 1,
Q u a r t e r ^ ?nh i
5“ “
***?* R ® b o nds w 1 1 1 b ®gin to mature, at
q u a r t e r l y intervals, on A p r i l 1, 1948.
i?a2 n o t be t r a n s f e r r e d to a n yone else or
p l e d g e d as c o l l a t e r a l f o r loans, n o r can they be a s s i g n e d excertain i n i 5 ? * n l B t r a * > r op Veterans A f f a i r s in p a y m e n t of
mini
r n C e p r a ^ i u m s > n n d e r s u c h r e g u l a t i o n s as the Adc
ise^ n
o f
fu
„r
?t
!h
te
Lr
eS change
h b l l S hm*a y ° be
? 0e m aSU0h
cisea,
no
de. P rlv3-lege h as b e e n exer-
-
2
-
The S e c r e t a r y s t r e s s e d the fact that the veterans or t h e i r
s u r v ivors w i l l r e c e i v e at m a t u r i t y or prior p a y m e n t of their
bonds, interest at
a year, or 1 2
for five years; for e x
ample, a v e t e r a n h o l d i n g a $ 1 0 0 b o n d w ill r e c e i v e $ 1 1 2 # 5 0 w h e n
it m a t u r e s five years f r o m the date of issue#
i%
S e c r e t a r y S n y d e r s a i d the T r e a s u r y even n o w is c o n s i d e r i n g
the p r o b l e m s r e l a t i v e to c a shing the b o n d s w h e n they m a t u r e #
For the c o n v e n i e n c e o f the veteran, he expects to m a k e a r r a n g e
m e n t s w h e r e b y u p o n p r e s e n t a t i o n of a m a t u r e d bond, and w i t h
p r o p e r identi f i c a t i o n * a ny b a n k or o t h e r a u t h o r i z e d p a y i n g
agent of the T r e a s u r y can make i m m e d i a t e p a y m e n t o f the face
a m o u n t and interest.
The T r e a s u r y w i l l f u r n i s h the b a n k s and
other p a y i n g agents w i t h charts to f a c i l i t a t e the c a l c u l a t i o n
of the interest payable on e a c h b o nd#
S e c r e t a r y S n y d e r said that in o r der to r e duce the costs of
the o p e r a t i o n to the Gove r n m e n t , a n d to f a c i l i t a t e p a y m e n t of
and a c c o u n t i n g for the b o n d s at m a t u r i t y * the T r e a s u r y h a d d e
c i ded u p o n an i n n o v a t i o n in the m a n n e r of i s s u i n g and the style
of the s e c u r i t i e s #
T he A r m e d F o r c e s Leave B o n d s wil l be in the
f o r m of d i s t i n c t i v e l y d e s i g n e d p u n c h e d c a r d s » This f o l lows the
p a t t e r n of m o s t T r e a s u r y checks n o w b e i n g issued, and w i l l en
able the T r e a s u r y to m e c h a n i z e m a n y of its a c c o u n t i n g o p e r a t i o n s #
T h r o u g h the use of p u n c h e d - c a r d p r o c e d u r e s , the T r e a s u r y
can e s t a b l i s h a c c o u n t i n g c o n t r o l s and records for the p u r p o s e
of r e n d e r i n g q u i c k e r s e r vice to ve t e r a n s in case of loss or
theft of their bonds; a v o i d i n g or p r o m p t l y d e t e c t i n g erroneous
pay m e n t s ; a n d r e d u c i n g c l e rical ex p e n s e in h a n d l i n g and p r o c e s s
ing of such a large volu m e of s e c u r i t i e s #
In a d d i t i o n to the c o n t e m p l a t e d s a v ings in operations, the
T r e a s u r y e x p ects to save a b o u t $ 2 2 5 , 0 0 0 in b o n d p r o d u c t i o n costs
b y the use o f this n e w f o r m of security.
H o w e v e r 1* d i s t i n c t i v e l y
d e s igned, p r o t e c t i v e p a p e r w i l l be used, an d the g e n e r a l d e s i g n
of the face of the b o n d w i l l b e s i m i l a r to that of other s e c u
rities#
S e c r e t a r y S n y d e r said that this d e p a r t u r e of the T r e a s u r y
f r o m the issuance of the usual types of secu r i t i e s does n o t
constitute a precedent#
It was p o i n t e d out that f a c tors p e c u l
iar to the A r m e d Forces L e ave B o n d s make, the p u n c h e d card
a p a r t i c u l a r l y suitable and safe i n s t r u m e n t for T r e a s u r y •o p e r
ations, e s p e c i a l l y the fact that t h ese b o n d s are all, registered,
and m a y not be sold, t r a n s f e r r e d , or u s e d as s e c urity for a loan-#
oOo
tm.ir
-it,
- 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 tne 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;13, 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 will be made
by the Secretary of the Treasury of the amount and price range of accepted
bids.
Those submitting tenders Trill 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
August 22, 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 thxes,
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 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
S-F5
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Friday, August 16, 19U6______ .
jade
The Secretary of the Treasury, by this public notice, invites tenders for
$ 13300,000,000 , 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 will be dated August 22, 19U6_______> and
Trill mature
out interest.
November 21« 191*6
9 when, the face amount Trill be payable with-
They Trill be issued in bearer form only, and in denominations
■500,000, and $1,000,000 (maturity value).
ip.
Tenders Trill be received at Federal Reserve Banks and Branches up to the
closing hour, two o ’clock p.m., Eastern Standard time,
Monday« August 19« 19ii6
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
F OR RELEASE, MORNING' NEWSPAPERS*.
Friday,' A u gust 16, 194B
' ‘
'V
.
' .Press’. Service
No. S-55.
The S e c r e t a r y of the Treasury, b y t h i s public notice, in
v i tes tenders for $1,300., 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, o h . ’
a d i s c o u n t b a eis u n d e r com,-.
•p e t i t i v e and fixed-*price b i d d i n g as h e r e i n a f t e r provided*
The b i l l s of t h i s series w ill be d a t e d A u gust ,22,.194.6, and
w ill m a t u r e N o v e m b e r 21, .19*46, 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* . They w i l l b e 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 , 0 Q 0 , .$10,000., .$100,000,
$ 5 0 0 , 0 0 0 , and $1,0.00,000 ( m a turity value),.
‘.
T e n d e r s w i l l be r e c e i v e d at Federal R e s e r v e Banks a nd .
B r a n c h e s up to the c l o s i n g hour, two o ’c lock p . m . ,.- E a s t e r n .
S t a n d a r d t i m e , Mphday, A u g u s t ' 19, 1946.
T e n d e r s will n ot be
r e c e i v e d at 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 i n g t o n .
E á c h tehder
m u s t be for a n ' e v e n m u l t i p l e o f $ 1 , 0 0 0 , ■ and the price' o f f ered
•must be e x p r e s s e d on t h e r basis of 100, w i t h n o t m o r e than three
decimals, e. g., 99.925. ,F r a c t i o n s m a y n o t be usecU
It *is
u r g e d that tenders, be m a d e on the p r i n t e d f o r m s and f o r w a r d e d
■in the s p e c i a l e n v e l o p e s w h i c h w i l l b e .supplied, b y .federal R e
sérve Banks or B r a n c h e s .on a p p l i c a t i o n ..thebe for-.
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 .deposit-.from i n c o r p o r a t e d
b a nks and trust coíhpaniés a n d from r e s p o n s i b l e and r e c o g n i z e d
d e a l e r s in i n v e s t m e n t secu r i t i e s .
T e n d e r s f r o m others m u s t
be a c c o m p a n i e d by payment 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, u n l e s s the te n d e r s aré 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
trus t 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> te n d e r s w i l l be opened
at the Fe d e r a l 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 publ i c
a n n o u n c e m e n t w i l l be m a d e b y the S e c r e t a r y 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 range of a c c e p t e d bids.
Those submitting
tenders w ill 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 re s e r v e s t h e right to
accept or reject a n y or all tenders, in w h o l e or in part, and
his a c t i o n in a n y such r e s p e c t shall b e final.
Su b j e c t to these
r e s e r v a t i o n s , 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 en t e r e d on a f i x e d - p r i c e b a s i s w i l l be a c c e p t e d in
full.
Payment of a c c e p t e d tenders at the p r ices o f f e r e d mus t
be m a d e or c o m p l e t e d at the Fe d e r a l R e s e r v e 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 a b l e funds on A u g u s t 22, 1946.
(O v e r )
2
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 o t her d i s p o s i t i o n of the bills, shall
n o t have a ny 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 b i l l s 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.
T h e b i l l s 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 a l l - 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 in t e r e s t t h e r e o f by a ny State, or any of the
p o s s e s s i o n s of t he U n i t e d States, or by any local taxi n g auth-*
ority,
For ou r p o s e s of t a x ation the a m o u n t of d i s c o u n t at which
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- and ^117 (a)
(1) of the 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 Revenue Act of 1941, the a m o u n t o f d i s c o u n t at w h i c h bills
issued h e r e u n d e r 'are sold shall n o t be con s i d e r e d to accrue
u n t i l such b i l l s shall be sold, r e d e e m e d or oth e r w i s e d i s p o s e d
of, and 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 capital
assets.
A c c o 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 n e e d include in^his
income t a x ’return on l y - t h e d i f f e r e n c e b e t w e e n the price paid
for s u c h bills, w h e t h e r on original issue or on sub s e q u e n t
p u r c hase, 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 e i t h e r u p o n sale or
r e d e m p t i o n at m a t u r i t y d u r i n g the t a x able y e a r , f o p 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 No, 418, as amended, and this
notice, p r e s c r i b e ,the terms gf the T r e a s u r y b i l l s and g o v e r n
the con d i t i o n s of t h e i r issue.
Copies of the c i r c u l a r m a y be
o b t a i n e d from any Federal R e s e r v e B a n k or Branch.
oOo
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Press Service No.
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—5
0
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
'Monday, August 19, 19U6.________
'
•
Press Service
'No. S-56
Secretary of the Treasury Snyder today announced the offering, through the
Federal Reserve Banks, of 7/3 percent Treasury Certificates of Indebtedness of
Series H-19ll7, open on an exchange basis, par for par, to holders of Treasury
Certificates of Indebtedness of Series G-19U6, in the amount of $U,336,327,000,
idiich will mature on September 1, 19U6. Since it 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 $2£,000 will be allotted in
full. Cash subscriptions Will not be received.
Interest.on the certificates now offered will be paid with the principal
at maturity, thus eliminating the need for the conventional semiannual interest
coupons. The purpose of this change, which was made after consultation with
the Federal Reserve
and a number of representative holders of certificates,
is to simplify the procedure and avoid the inconvenience of clipping coupons twice
a year, thereby effecting an economy in clerical and accounting expenses to cer
tificate holders, the Federal Reserve Banks and the Treasury. The certificates
will be dated September 1, 19U6, m i l bear interest from that date at the rate of
seven-eighths of one percent per annum and will mature September 1, 19U7. They
will be issued in bearer form only, in denominations of $1,000, $£,000, $10,000,
$100,000 and $1,000,000.
System
Pursuant to the provisions of the Public Debt Act of 19I4I, 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 Wednesday,
August 21, except for the receipt of subscriptions from holders of $2£,000' or
less of the maturing certificates. The subscription books wall close for the
receipt of subscriptions of the latter class at the close of business Thursday,
August 22.
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
Dated and bearing interest from September 1* 19H6
Due September 1,
19k7
TREASURY DEPARTMENT,
Office of the Secretary,
Washington, August 19* 19U6.
19U6
Department Circular No. 792
Fiscal Service
Bureau of the Public Debt
I.
OFFERING OF CERTIFICATES
X. 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 nercent Treasurv Certificates of Indebtedness of Series H-19U7* in
will be retired on cash redemption.
II.
DESCRIPTION OF CERTIFICATES
1. The certificates will be dated September 1, 19U6, and will bear^interest
from that date at the rate of 7/8 percent per annum, payable with the principal
at maturity on. September 1, 19U7» They will not be subject to call for redemp
tion 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 otates,
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.
U. Bearer certificates will be issued in denominations of $1,000, $^,000,
$10,000, $100,000 and $1,000,000. The certificates will not be issued in regis
tered form.
3.
The certificates will be subject to the general regulations of tne
Treasury Department, now or hereafter prescribed, governing United States cer
tificates.
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 sub
scription, 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
$ 25,000 will be allotted in full, and subscriptions for amounts over $25,000
m i l be allotted to all holders on an equal percentage basis, but not less than
$25,000 on any one subscription. The basis of the allotment will be publicly
announced, and allotment notices will be sent out promptly upon allotment.
IV.
PAYMENT
1.
Payment at par for certificates allotted hereunder must be made on or
before September 3, 19U6, or on later allotment, and may be made only in Treasury
Certificates of Indebtedness of Series G-I9I4.6 , maturing September 1, 19U6,
which m i l 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.
John W. Snyder,
Secretary of the Treasury.
fi
BBSaSNffiffifcSB-
FQR IMMEDIATE RELEASE
*
*
s - r 7
The Bureau of Customs has
ruled that the amount of British
Purchase Tax which would have been collected by the British Govern
ment on an article sold for consumption in England is not to be
included in the calculation of foreign value of that article for
purposes of assessing and collecting customs duty when the article
is imported into the United States. jThe ruling will result in the
collection of smaller amounts of duty on many articles imported from
England than would be the case if the purchase tax were included
in dutiable foreign value.
The legal principle involved was recently decided by the United
States Court of Customs and Patent Appeals in the case of United
States v. la. S. Pitcairn Corporation, C.A.D. 33k9 which involved
the foreign value of an importation of china-ware and earthenware
subject to ad valorem duty. IThe ruling of the Bureau of Customs is
an extension of the court* s ’
decision to cover all types of imports
from England, and is based upon an official Treasury Department
investigation which indicated that there is no difference, of any
sort which would affect the calculation of customs duties, between
the application of the British Purchase Tax to earthenware or chinaware and its application to other commodities in England.
The ruling of the Bureau is being circulated to field officers
of the Customs Service by the Customs Information Exchange.
TREASURY DEPARTMENT
WashIngton
Press Service
No. S-57
F O R . I M M E D I A T E RELEASE,
M o n da y , Au gu s t 19, 1546
The B u r e a u of Cu s t o m s has ruled that the a m o u n t of
B r i t i s h P u r c h a s e T ax w h i c h w o uld h a v e b e e n c o l l e c t e d by
the B r i t i s h G o v e r n m e n t on an article sold for c o n s u m p t i o n
in E n g l a n d is not to b e in c l u d e d in the c a l c u l a t i o n of
fo r e i g n value of that article for. pu r poses of a s s e s s i n g
and collecting customs d uty w h e n the article is imported
into the United States.
The ruling wil l result in the c o l l e c t i o n of smaller,
amounts of d u t y on m a n y ar t i c l e s i m p orted f r o m E n g l a n d
than w o u l d b e the case if the p u r c h a s e tax were included
in-dutiable foreign value.
The legal principle involved was r e c e n t l y d e c i d e d by
the U n i t e d States Court of Customs and Pate n t A p p eals in
the case o f U n i t e d States v. W m . S. P i t c a i r n C o r p o r a t i o n ,
C.A.D. 534, w h i c h involved the f o r e i g n value of an i m p o r
t a t i o n of c h i n aware and e a r t h e n w a r e subject to ad v a l o r e m
duty.
The r u l i n g of the B u r e a u of Customs is an e x t e n s i o n
o f the c o u r t ’s d e c i s i o n to c o v e r all types of imports f rom
England, and is b a s e d u p o n an official T r e a s u r y D e p a r t m e n t
i n v e s t i g a t i o n w h i c h i n d i c a t e d that there is no difference,
o f a n y sort w h i c h w o u l d affect the c a l c u l a t i o n of customs
duties, b e t w e e n the a p p l i c a t i o n of the B r i t i s h Purchase
Tax to eart h e n w a r e or chinaware and its a p p l i c a t i o n to
o t h e r c o m m o d i t i e s in England.
The ruling of the B u r e a u is b e i n g c i r c u l a t e d to field
o f f icers of the Customs Service b y the C u s t o m s I n f o r m a t i o n
Exchange.
oOo
TREASURY DEPARTMENT
Washington
PGR RELEASE, M O R N I N G N E W S P A P E R S *
Tuesday, A u g u s t 20, 1946________
Press Service
No. S-58
T h e S e c r e t a r y of the T r e a s u r y announced, last evening that
the tenders for f l ,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
A u g u s t 22 and to mature' N o v e m b e r 21,
1 9 4 6, w h i c h wer e of f e r e d on A u gust 1G, 1946, were open e d at
th.e
Federal Reserve Banks on A u g u s t 19.
The details
of this
issue are as follows:
Total a p p l i e d for - $ 1 , 8 0 3 , 5 4 7 , 0 0 0
Total a c c e p t e d
1,308,007,000
A v e r a g e p r ice
Range
- 9 9 . 9 0 5 / Equiv.
rate
(includes $ 3 5 , 6 5 8 , 0 0 0 entered
on a fixe d - p r i c e basis at
99.905 and a c c e p t e d in full)
of discount approximately
0 , 3 7 5 / per a n n u m
of a c c e p t e d c o m p e t i t i v e bids:
H i v h - 99.9 0 8 E q u i v . rate o f d i s c o u n t
tf
H
If
Low
- 99.905
M
bid
Federal Reserve
District
Total
A p p l i e d For
T O TAL
$
n
for at the low p r ice was accepted)
(70 p e r c e n t of the amount
Bos ton
New York
P h i l a delphia
Cleveland
Richmond
Atlanta
Chicago
St. L o u i s
Minneapolis
Kans a s City
Dallas
San F r a n c i s c o
approx . 0 . 3 6 4 / pe r a n n u m
ft
0.376/
11,500,000
1,369,659,000
12,540,000
14,265,000
10,279,000
3,2 1 5 , 0 0 0
281,100,000
4,130,000
2,050,000
15,430,000
7,875,000
71,504,000
$1,803,547,000
Total
Accept ed
$
8,920,000
988,209,000
9,540,000
11,265,000
9,529,000
3,2 1 5 , 0 0 0
198,900,000
3 , 6 8 0,000
2,0 5 0 , 0 0 0
14,080,000
6,915,000
51,704,000
$1,308,007,000
- 3 sold, redeemed or othervri.se 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. Ul8, 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.
T
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2
-
Immediately after the closing hour, tenders will be opened at the Federal
Reserve Banks and Branches, following which public announcement Will be made
by the Secretary of the Treasury of the amount and price range of accepted
bids.
Those submitting tenders will be advised of the acceptance or rejection
thereof.
The Secretary of the Treasury expressly reserves the right to accept
or reject any or all tenders, in whole or in part, and his action in any such
respect shall be final.
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
August 29, 1?U6_____ .
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 19Ulj the amount of discount at w^iich 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, August 23, 19H6______ .
&
The Secretary of the Treasury, by this public notice, invites tenders for
$ l.^GO.000,000 > or thereabouts, of
92
-day Treasury bills, to be issued
on a discount basis under competitive and fixed-price bidding as hereinafter
provided.
will mature
The bills of this series Trill be dated
November 29, 19U6
August 29, 19U6
, and
w
^ Trhen the face amount will be payable with-
-------------out interest. 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,
Mondayt August 26«
3 *
Tenders will not be received at the Treasury Department, Yfashington.
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 .92£.
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.
»
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TREASURY DEPARTMENT
Washington
FOR RELEASE, M O R N I N G N E W S P A P E R S
Friday, August 23, 1 9 4 6 _______
• '
Press Service
Uo. S-59
The S e c r e t a r y of the Treasury, b y this public notice,
invites tenders for f l , 300,*000,000, or t h e r e abouts, of 9 2 - 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
titive and f i x e d - p r i c e b i d d i n g as h e r e i n a f t e r provided.
The
bills o f this series will be d a ted AU gU S t 29, 1946, and will
m a t u r e N o v e m b e r 29, 194 6, w h e n the face a m o u n t will be payable'
w i t h o u t interest.
T h e y will be issued in b e a r e r for m only,
and in d e n o m i n a t i o n s of i l , 000,
'{5,000,
$ 10,000,
{100,000,
'{500,000, and {l, 0 0 0 , 0 0 0 ( m a t urity value ) .
T e n d e r s wil l be r e c e i v e d at Federal R e serve B a n k s and
B r a n c h e s up to the c l o s i n g hour,, two o ’clock, p.m., E a s t e r n
S t a n d a r d time, Monday, August 26, 1946.
T e n d e r s will not be
re 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 for an even m u l t i p l e of
1,000,' a n d the price offered
m u s t be e x p r e s s e d o n the b a s i s o f 100, w i t h not more than
three' decimals, e.g., 99.9«25.
Fractions m a y not be used.
It
is u r ged that tenders be mad e on the p r i n t e d forms an d f o r
warded in the special env e l o p e s w h i c h will be su p p l i e d byFederal R e s e r v e Banks o r B r a n c h e s on "application therefor.
i
T e n ders w ill b e 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 porated
•banks, and trust com p a n i e s and from resp o n s i b l e and reco g n i z e d
d e alers in investment securities.
Te n d e r s f r o m others mus t be
a c c o m p a n i e d b y pa y m e n t of 2 p e r cent 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, unless 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 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 or
trus t c o m p a n y .
I m m e d i a t e l y a f t e r the closing hour, tenders will be
opened at the Federal Reserve Banks and Branches, following
w h i c h public 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 amount a n d price range o f a c c e p t e d bids.
Those submitting t e n ders will be a d v i s e d of the a c c e p t a n c e or
r e j e c t i o n thereof.
The S e c r e t a r y of the 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
w h o l e or in part, and his a c t i o n in any such respect shall be
final.
S u b j e c t to these reservations, t e n ders for { 2 0 0 , 0 0 0
or less f r o m any o n e -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-price
basis w ill be a c c e p t e d in full*
P a y m e n t of a c c e o t e d tenders
at the prices offered m u s t be made or c o m p l e t e d at the Federal
Reserve B a n k in c a s h o r o t her i m m e d i a t e l y a v a i l a b l e funds on
August 29, 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 gain from the sale or other d i s p o s i t i o n o f the bills, shall
n o t h a v e any 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 n o t hav e 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 other excise taxes, w h e t h e r Federal.or. State, but
shall be e x e m p t from all taxation n ow or h e r e a f t e r Ttnposed on
the principal op interest t h e r e o f b y any State, o r any of the
p o s s e s s i o n s of the U n i t e d States, or by any local taxing
authority.For p u r p o s e s o f t a x a t i o n the a m o u n t o f d i s count
at whi'ch T r e a s u r y b i lls are o r i g i n a l l y sold b y the U n i t e d
S t ates shall 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
and 117(a)(1) of the 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 Act of 1941, the amount of discount
at w h i c h bills issued h e r e u n d e r are sold shall not be c o n
sidered to a c c r u e until s u c h b i l l s shall be sold, r e d e e m e d :or
o t h e r w i s e d i s p o s e d of, and s u c h b i lls are e x c l u d e d f r o m c o n
s i d e r a t i o n as capital assets.
Acco r d i n g l y , the o w ner of
T r e a s u r y bills (other than life i n s urance companies) issued
h e r e u n d e r n e e d include in his income tax return onl 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 ubsequent purchase, and the amou n t
a c t u a l l y r e c e i v e d eith 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 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 gai n or l o s s .
T r e a s u r y D e p a r t m e n t Circular 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 ver n the c o n d i t i o n s of their issue.
C o pies of the c i r c u
lar m a y be o b t a i n e d from any Federal R e s e r v e B a n k or Branch.
oOo
ffiRASURY I
H
I
f
Washington
MEMORANDUM FOR THE PRESS*
August 23, 1946
Secretary Snyder today announced the appointment of Harold
Glasser as Director of the Division of Monetary Research, and
Paul D. Banning as Deputy Director of the Division of Procure
ment in charge of fiscal activities.
Mr. Glasser, a native of Chicago, came to the Treasury
Department in 1936 as assistant director of Monetary Research,
and served continuously in that capacity to the present date.
He also acted as adviser to the Ministry of Finance, Government
of Ecuador, 1940-1942, and as chief of the Financial Control
Division, North African Economic Board, in
Frank
1943
*
He succeeds
Coe, who resigned as director early in July to become
secretary of the International Monetary Fund.
Mr. Banning is a native of Mount Vernon, Ohio.
He entered
Government service in 1919 as a clerk in the Bureau of Internal
Revenue, was later associated with the old Bureau of Efficiency,
and at various times occupied administrative positions with the
Bureau of Accounts, Treasury Department, as Chief Accountant,
Assistant Commissioner, and chief of the Liquidation Division, his
latest assignment.
From 1941 to 1943 he was special assistant to
the Public Printer, in charge of the accountancy branch of Govern
ment Printing Office, resigning to enter the United States Army.
i
As a lieutenant colonel he served as Chief Accountant for the
Allied Commission in Italy from January, 1944, to January, 1946•
At the Division of Procurement, Mr. Banning succeeds Willard
L. Johnson, who was recently named Budget Officer of the Treasury
TREASURY DEPARTMENT
Washington
FOR I M M E D I A T E R E LEASE
Friday, A u g u s t 25, 194-6
Press Service
No. S - 6 0
S e c r e t a r y S n y d e r t o d a y a n n o u n c e d the a p p o i n t m e n t of
Haro l d G l a s s e r as D i r ector o f the D i v i s i o n of M o n e t a r y Research,
and Paul D. B a n n i n g as D e p u t y D i r e c t o r o f the D i v i s i o n of
P r o c u r e m e n t in charge of fiscal activities.
Mr. Glasser, a n a t i v e of Chicago, came to the T r e a s u r y
D e p a r t m e n t in 1936 as a s s i s t a n t d i r e c t o r of M o n e t a r y Research,
and served c o n t i n u o u s l y in that c a p a c i t y to the present date.
He also a c ted as a d v i s e r to the M i n i s t r y of Finance, G o v e r n
ment of Ecuador, 1940-1942, a nd as c h ief of the Financial
Co n t r o l Division, N o r t h A f r i c a n E c o n o m i c Board, in 1943.
He
succeeds F r ank Coe, w h o r e s i g n e d as di r e c t o r early in July to
b e c o m e s e c r e t a r y of the I n t e r n a t i o n a l M o n e t a r y Fund.
Mr. B a n n i n g is a n a t i v e of Mount Vernon, Ohio.
He
en t e r e d G o v e r n m e n t service in 1919 as a. clerk in the B u r e a u of
Internal Revenue, was l a ter a s s o c i a t e d w i t h the old B u r e a u of
E f f i c i e n c y , and at v a r i o u s times occupied a d m i n i s t r a t i v e p o s i
tions w i t h the B u r e a u of Accounts, T r e a s u r y D epartment, as
C h i e f A c c o untant, A s s i s t a n t Co m m i s s i o n e r , and c h i e f of the
L i q u i d a t i o n Division, his latest assi g n m e n t .
From 1941 to
1 9 4 3 he was special a s s i s t a n t to the Public Printer, in charge
of the a c c o u n t a n c y b r a n c h of G o v e r n m e n t P r i n t i n g Office,
r e s i g n i n g to enter the United. S t ates Army.
As a lieu t e n a n t
colonel he served as C h i e f A c c o u n t a n t for the A l l i e d C o m m i s s i o n
in Italy from January 1944 to J a n u a r y 1946.
At the D i v i s i o n of P r o c u rement, Mr. B a n n i n g succeeds
W i l l a r d L. Johnson, wh o was r e c e n t l y n a m e d B u d g e t O f f i c e r of
the T r e a s u r y D e p a rtment.
oOo
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. ip-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.
y
mtx
-
2
-
Immediately after the closing hour, tenders will be opened at the Federal
Reserve Banks and Branches, following which public announcement will be made
by the Secretary of the Treasury of the amount and price range of accepted
bids.
Those submitting tenders will be advised of the acceptance or rejection
thereof.
The Secretary of the Treasury expressly reserves the right to accept
or reject any or all tenders, in whole or in part, and his action in any such
respect shall be final.
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
September 5>. 19ii6
SBc
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 non* 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 ±he United States shall be considered to be interest.
Under Sections
%2 and NjJ.7 j(a) (1) of the Internal Revenue/Code, as amended by Section ll£ of
the Revenue Act of I9I4I, 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„
Tuesday, August 2?, 19^6_______.
/ -
*
/
The Secretary of the Treasury, by this public notice, invites tenders for
$1.^00.000.000
9 9
i or
thereabouts, of
91
jgfy
-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.
December^« 19)t^
S e p t e m b e r 19)>6
. and
. 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,
Friday. August 30, 19li6
ill
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
,P0R RELEASE, M O R N I N G N E W S P A P E R S ,
Tuesday, A u g u s t 27, 1946. ,
Press Service
N 0 ...S-6 I
T h e S e c r e t a r y of the T r e a sury, b y this public notice,
invites tenders 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 b e - i s s u e d 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 and f i x e d - p r i c e b i d d i n g as h e r e i n a f t e r p r o v ided*
The b i l l s of this series w i l l be d a ted S e p t e m b e r 5* 1946, and
w i l l m a t u r e D e c e m b e r 5, 1946, w h e n the face amou n t wil l be p a y
able 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 ¿1,000, 1-5,000, $10>000*' $100,000,
$500,000, and $ 1 * 0 0 0 , 0 0 0 (maturity value).
T e n d e r s wil l be r e c e i v e d at Federal R e s e r v e B a n k s and
B r a n c h e s u p to the c l o s i n g hour, two o ’c l ock p*m., E a s t e r n
S t a n d a r d time, Friday, A u g u s t 30* 1946.
T e n d e r s w i l l not 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 tender
m u s t be for a n eve n m u l t i p l e of $ 1 ,0 0 0 , and the price offered
m u s t be exp r e s s e d on the basis of 1 0 0 , 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 m a d e on the p r i n t e d forms a nd f o r w arded
in the special envelopes w h i c h wil l be s u p plied b y F e deral R e
serve 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 fro m i n c o r p o r a t e d
banks 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 l e r s 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 b y pa y m e n t o f -2 p e r c e n t of the face amou n t of
T r e a s u r y bills a p p l i e d for, u n l e s s the tenders are a c c o m p a n i e d
by an express g u a r a n t y of pa y m e n t b y a n i n c o r p o r a t e d b a n k or
trust company.
I m m e d i a t e l y a f t e r t h e c l o s i n g hour, tenders w ill 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 l i c a n n o u n c e m e n t wil l be m a d e by the S e c r e t a r y of the T r e a s u r y
of the amount and p^ice range of a c c e p t e d bids.
T h ose 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 reser v e s the right to
a c cept or r e j e c t any or all tenders, in w h o l e 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 re
servations, tenders for $ 2 0 0 ,0 0 0 or less f r o m a ny 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 w ill 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 p r i c e s of f e r e d mus t be made
or c o m p l e t e d 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 a b l e funds on S e p t e m b e r 5, 1946.
(Over)
2
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
gai n f r o m the sale'or -o t h e r d i s p o s i t i o n of the bills, shall not
have a ny 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 no t have any special treats
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.
T h e bills shall be subject to estate, inheritance, gift, or
o t h e r exci s e taxes, w h e t h e r Federal of State,' but shall be e x
e m p t 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
cipal or interest t h e r e o f by any State,- or any of the possessions
of the? U n i t e d States., or by any .local t a xing authority,
For pur
poses of t a x ation the a m o u n t - o f 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 ' b y the U n i t e d States shall be cons 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
R e v e n u e .C o d e , as a m e n d e d - b y S e c t i o n 115 of the. R e v e n u e Act of
1941, the a m o u n t of di 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 n o t be c o n s i d e r e d to a c crue until.'such 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: such bills are e x
cluded 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 dingly, the
o w n e r ' o f T r e a s u r y b i l l s (other than life insurance companies)
issued hereunder' n e e d 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 p r ice paid fo r such bills, w h e t h e r on
o r i ginal 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 d u r i n g the
taxable yea r for w h i c h the r e t u r n , i s made, as ord i n a r y gain or
loss*
. ; i
' |.
' ■-;* .V
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 t e rms of the Treasur;/ bills and g o v e r n the
conditions of t h eir issue,
Copies of the. c i r c u l a r m a y be obtained
f r o m any Federal R e s e r v e Bank or Branch,
oOo
FOR IMMEDIATE RELEASE
AUGUST 26. 19**6
She Bureau of Customs announced today that the global quota
of **5»656**420 pounds of cotton haring a staple length of 1-1 /S"
or more hut less than l-ll/lb* was filled on August 21, 19*46.
Approximately 75$ of such imports originated in Egypt and the
Anglo-Egyptian Sudan.
She new quota year begins on September 20, 19 *46.
She Bureau
has arranged for the simultaneous presentation of entries of all
cotton and cotton waste subject to quota at 12f 00 HOOH Eastern
Standard Time or its equivalent in other time belts, on September
20.
Ho priority rights are granted at the opening of the new
quota year by reason of the cotton having been presented for entry
during the current quota period.
TREASURY DEPARTMENT
Washington
F O R I M M E D I A T E RELEASE,
M o n d a y t A u g u s t 26, 1946« -
Press S e rvice
No. S-62
T h e B u r e a u of Cu s t o m s a n n o u n c e d t o d a y that the global
q u o t a of 4 5 , 6 5 6 , 4 2 0 p o u n d s
of 1 -1/8"
1946.
of cott o n h a v i n g a staple l e n g t h
or m o r e but less than 1 - 1 1 / 1 6 " was f i l l e d on A u g u s t
A p p r o x i m a t e l y 75/ of s u c h imports
and the
originated
21,
in Egypt
A n g l o - E g y p t i a n Sudan.
The n e w quota y e a r b e g i n s on S e p t e m b e r 20,
eau has a r r a n g e d
for the s i m u l t a n e o u s
of all c o tton and c o t t o n w a ste
The B u r
p r e s e n t a t i o n of entries
subject to quota at 1 2 :00 N OON
E a s t e r n S t a n d a r d Time or its e q u i v a l e n t
on S e p t e m b e r 20.
1946.
in other time belts,
N o p r i o r i t y rights are g r a n t e d at the opening'
of the n e w quota y ear by reason of the c o tton h a v i n g b e e n
presented
for entry d u r i n g the
c u r r e n t quota period.
0O0
TREASURY DEPARTMENT
Washington
Press Service
FOR TMMgnTATK RELEASE,
Monday, August 26, 191*6
i -
u
The Treasury today announced the subscription figures and tbs basis
of allotment for the offering of ?/8 percent Treasury Certificates of
Indebtedness of Series B-19l*7 in exchange for Certificates of Indebtedness
of Series $-191*6, maturing September 1, 191*6, in the amount of $1,336,32?,000.
Reports received from the Federal Reserve Banks show that subscriptions
aggregate $ 4,144,000,000*
Subscriptions in amounts up to and including
$2$,000, totaling about $40,000,000 were allotted in full*
Subscriptions
in amounts over $25,000 were allotted 6 6 percent 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*
\
/
' .V1'- .j<- L__V
*
TREASURY DEPARTMENT
Washington
FOR I M M E I D A T E R E L E A S E , .
Monday, A u g u s t 26, 1 9 4 6 > ‘
Press Service
No*-S-63
T he T r e a s u r y t o d a y a n n o u n c e d the s u b s c r i p t i o n figures
and the b a s i s
of a l l o t m e n t
for the o f f e r i n g 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 of Indeb t e d n e s s
e x c hange f o r C e r t i f i c a t e s
of Series H - 1 9 4 7
of I n d e b t e d n e s s of S e r i e s G-1946,
m a t u r i n g S e p t e m b e r 1„‘ 1946,
in the amou n t of $4,..336,327,.000*
R e p o r t s r e c e i v e d f r o m the F e d eral Re s e r v e Banks
subscriptions aggregate $4,144,000,000*
amounts up to and i n c l u d i n g $25,000,
w ere a l l o t t e d
in full.
in
Subscriptions
show that
Subscriptions
in
to t a l i n g about $ 4 0 , 0 0 0 , 0 0 0
in a m o unts
over $ 2 5 , 0 0 0
w ere a l l o t t e d 56 p e r c e n t on a straight p e r c e n t a g e basis,
not
less
than $ 2 5 , 0 0 0 to any one
where necessary,
D e t a i l s as
n o u n c e d whe n
subscriber,
but
w i t h adjustment,
t o the n e x t h i g h e s t $1-,000-.
to s u b s c r i p t i o n s and a l l o tments will b e
an-
■#
final reports are r e c e i v e d f r o m the Federal R e
serve B a n k s *
oOo
m&smi i m
Washington
for
m m m .» m m xM heesfafirs*
$m m service
Tuesday* August 27# 19lj6.______
g
|| t
The Secretary of the Treasury announced last evening that the tenders for
$1*300,000,000, or thereabouts, of 92-day Treasury bills to be dated august 29 and to
nature Hovember 29, 19li6, vhich sere offered on august 23, 19U6, «ere opened at the Federal
Reserve Banks on August 26.
The details of this issue are as follcsst
Total applied for - $1,80^,6^,000
Total accepted
- 1,302,132,000
average price
(includes $27*596,000 entered on a fixed-price
basis at 99.905 and accepted in full)
- 99.90k/ Equivalent rate of discount approx. 0.375$ per annum
9
Range of accepted competitive bids:
High
Los
- 99.907 Equivalent rate of discount approoc. 0.362;$ per annua
- 99.90U
*
*
*
*
*
0.376$ *
*
(69 percent of the amount bid for at the lev price «as accepted)
Total
Accepted
Federal Reserve
District
Total
Applied
Boston
He« fork
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
|
25,600,000
1,391*.685,000
22,1*61,000
U , 715,000
10 ,570,000
1 ,630,000
21*1,290,000
21,800,000
8,050,000
10 ,096,000
10,255,000
1*6,530,000
1
$1,801*,682,000
$1,302,132,000
TOTAL
*
£
.___
19,090,000
99U,785,000
19,361,000
10 ,165,000
10,570,000
1 ,380,000
167,720,000
16 ,685,000
6 ,500,000
9 ,631,000
9,635,000
36 ,610,000
TREASURY DEPARTMENT
Washington
FOR RELEASE, M O R N I N G N E W S P A P E R S ,
Tuesday, A u g u s t 27, 1946,_____ _
Press-Service
No. S-64
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 , or thereabouts, of 9 2 - d a y
T r e a s u r y b i l l s to be d a t e d A u g u s t 29 a nd t o . mature N o v e m b e r 29,
1946, w h i c h w e r e o f f e r e d on A u g u s t 23,. 1946, w ere o p ened at
the Federal Re s e r v e B a n k s on' A u g u s t 26.
The d e t a i l s of this
issue are as follows:
Total applied for - | l , 804,682,000
Total accepted
1,302,132,000
A v e r a g e p r ice
Range
(includes ‘$ 2 7 , 5 9 6 , 0 0 0 entered
on a f i x e d - p r i c e basis at
9 9 ,905
- 9 9 , 9 0 4 / E q u i v a l e n t rate of d i s c o u n t approx.
0 , 3 7 5 $ per a n n u m
of a c c e p t e d c o m p e t i t i v e bids:
High - 99,907 Equivalent
L ow
- 99.904
n
(69 p e rcent
rate of d i s count
n
tt
tf
approx.
* 'h
0*-364$ per a n n u m
ff
0*376/£ n
of t he amou n t bid for at the low price was accepted)
Federal Reserve
District
Total
A p p l i e d for
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St, Louis ■
Minneapolis
Kansas City
Dallas
S an F r a n c i s c o
$
$
| 1 , 8 0 4 , 6 8 2 , 000
$1,302,132,000
25,600,000
1,394,685,000
22.461.000
11.715.000
10.570.000
1.630.000
241,290,000
21.800.000
8.050.000
10.096.000
10.255.000
■ 46,530,000
TOTAL
,Total
Accepted
oOo
19,090,000
994.785.000
19.361.000
10.165.000
10.570.000
1.380.000
167.720.000
16.685.000
.6,500,000
9.631.000
9.635.000
36. 6 1 0 . 0 0 0
Page 4
Comparison of principal items of assets and liabilities of national banks - Continued
(in thousands of dollars)
♦
Increase or decrease : Increase or decrease
:
:
j June 29,
: 19^
i Dec. 31»
!
LIABILITIES
Deposits of individuals, partner
ships and corporations:
$42,560,021
Demand.....................
Time...... ...... ....... .
i7 .i7 3 .99S
2,892
Postal savings deposits.........
Deposits of TJ. S. Government:
War loan and Series E bond accts.
7.^31.239
262.175
Other U. S. Gov*t deposits.....
Deposits of States and political
4,006,759
subdivisions................ .
Deposits of banks.............
7,816,787
Other deposits (certified and
1 ,21«, 887
cashiers1 checks, etc.)......
80 ,494,758
Total deposits....... .
Bills payable, rediscounts & other
24,441
liabilities for borrowed money.
600,278
Other liabilities................
Total liabilities, excluding
capital accounts............
81,119,1)77
CAPITAL ACCOUNTS
Capital stock:
47,424
Preferred stock..............
Common stock...................
1,636,065
Total.......................
1,683,489
2 ,10 0 ,222
Surplus.......................
Undivided profits....... .
788,759
Reserves.........................
3 0 1,10 7
Total surplus, profits and
3,190,088
reserves..».»»»»«.*.»....»**
Total capital Account Si..*.«.
Total liabilities.and.capital
accounts.
Ratio of loans to total deposits.
NOTE:
Minus sign denotes decrease.
1945
: June 30,
1 1945
j since Dec. 31» 1945
• since June 30, 1945
Amount
: Percent : Amount
: Percent
$40,970,935 $3 7 ,126,50 0
15,960,051 1 4 ,315,4 50
5 .0 5 7
2,979
$1,589,086
1,213,947
-87
3.88
7 .6 1
-2 .9 2
$5.^33.521
2,858,548
-2,165
14.64
19.97
-42.81
13,841,894
318,280
1 2 ,868,475
336.524
-6 ,4 10 ,6 5 5
-5 6 ,10 5
-46.31
-1 7 .6 3
-5 .^37,2 3 6
-74,349
-42.25
-22.09
3,1)87,711
9 ,230,786
5 .1 5 3 .7 2 3
8 ,2 5 1,9 5 4
5 1 9 ,o4s
-1.413.999
14.88
-1 5 .3 2
853.036
-4 3 5 ,1 6 7
2 7.0 5
-5 .2 7
1,1)30,311
8 5 ,2 42,947
767.8 54
7 6 ,8 2 5 ,5 3 7
-189,424
-h,748,189
-13.24
-5.57
^73 .0 3 3
3 ,669.2a
. 6 1.6 0
4 .7$
77.9 6 9
5 5 9 .10 3
5,209
4 9 1.5 3 4
-53.528
41,175
19.232
108,744
3 6 9 .2 1
22.12
85,880,019
77,322,280
-4,760,542
3,797,197
4.91
-6 8 .6 5
7 .3 6 .
-5 .5 *)
-32.63
3.00
1 .4 9
4.42
14.48
1-55
-32,232
91,537
59.305
224,945
96,613
2 0 ,1 6 1
-40.46
5.93
3.65_:
12.00
13.96
7.18
193.190
217,840
6 .4 5
4.68
3 4 1,7 1 9
4oi,024
12.00
8.97
-4,542,702
-5.02
70 ,39!)
1 ,588,445
1,658,839
2,011,403
688,986
296,509
79 .6 56
1 ,544,528
1,624.184
1.875.277
692,146
280,946
-22,970
47,620
24,650"
88,819
99.773
4,598
4,873,577
2,996,898
4,655.737
2,848,369
4 ,4 7 2 .5 5 3
s5 .993.05i)
1 8 .01#
90,535,756
Î6 .36#
81,794,833
I6 .I3#
4 ,1 9 8 ,2a
5 .1 3
Page 3
Statement showing comparison of principal items of assets and liabilities of active national hanks
as of June 29* 1946, Dee. 31» 1945» and June 30» 1945
(in thousands of dollars)
f
•
•
;
Number of banks,...................
ASSETS
Loans on real estate.......... ..
Other loans» including overdrafts,.
Total loans....... ...........
U, S. Government securities:
Direct obligations...........
Obligations fully guaranteed..
Total U. S. securities......
Obligations of States and political
subdivisions,....................
Other bonds» notes and debentures.»
Corporate stocks» including stocks
of federal Reserve Banks.........
9
t
June 29* :
1946
t
5 ,01S
4
e
Dec. 3 1 ,
19 U5
5*023
j June 3 0 »
! 1945
5*021
Increase or decrease :Increase or decrease
:since Dec. 31, 1945
:since June 30, 1945
: Amount
: Percent : Amount
: Percent
-5
- .1 0
-3
$2.7U7,93U
ll.75O.U5 7
14,49^,441
$2 ,206,472
11,741.570
13*943,042
$2 ,0 8 3,18 2
. 10,305,951
12,389.133
$5 4 1,5 12
8,887
550.399
U7 .U6 5 .U75
7 .U0 1
4 7 ,4 7 2 ,3 7 6
5 1 .u59.960
....,. 7 .7U6
51,467,706
U7 .23O .307
,
25.156
47.255.463
-3.994.485
...... -345
-3 .994.830
2 ,454,265
1.945.946
2,341,755
1 .656,865
2 ,200,505
1,422,677
112,5^0
239,031
4.31
1 7 .4 5
253.760
523.269
143.654
1 U5 .3 1 3
5 5 ,6 11,6 0 9
l4i,256
5 1 ,019.901
6 3 .U0 9 .03U
s a ,290
9.647,552
7,144,109
-1*659
-3 .594.868
-l.lU
2.398
996,840
Total securities....... .
5 2 .Ol6 .7Ul
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......................
66,515.182
805,575
1 0 ,458,494
7*397*782
69.559.651
1,008,644
1 0 ,451,0 20
8 ,719 *12 5
1 3 ,6 6 1 ,6 5 1
816,021
20 ,178 ,78 9
7 9 7 .3 16
Total assets...... ...........
85.993.054
9 0 .5 3 5 .7 5 6
24.54
.03
3-95
- .0 6
$664,802
1,444,506
2,109,303
31.91
14.02
I7 .O3
235*163
-7 .7 6
-4 .4 5 ____ -I7 .7 5 5
2 1 7 .4 1 3
-7.7b
.50
-70.58
.46
11.53
36.73
1 .7 0
-3,044,469
-203,069
7 .4 7 4
-1 ,3 2 1,3 4 3
-6.46
-4.38
3,106,148
1.95
4 .9 0
-2 0 .13
*07
-1 5 .1 5
-15*715
810,942
2 53 .6 73
-1 . 9 1
S.4l
3.55
17.612,951
772,343
-1 ,516,938
18 .7 0 5
- 7 .5 2
2 .3 5
1,048,900
4 3 ,1 7 3
5 .9 6
8 1 ,794,833
-4.54S.702
-5 .0 2
4 ,19 8 ,2 2 1
5.13
5 .5 9
-
2
-
discounts to total deposits on June 29, 19*46 was 18.01, in comparison with 16.36
on December 31 , 19*15, end 16.13 on June 30, 19*45*
Investments by the hanks in United States Government obligations (including
$7,000,000 guaranteed obligations) as of June 29, 19*46 aggregated $*47,500,000,000,
which was a decrease of $*4,000,000,000, or nearly 8 percent, in the amount reported
as of December 3 1 , 19*45, but an increase of $200,000,000, or one-half percent, over
the amount reported as of June 19*45*
Other bonds, stocks and securities held of
$*4,500,000,000, which included obligations of States and political subdivisions of
$2,500,000,000, showed an increase of $*400,000,000 since December and an increase
of $800,000,000 in the year.
Cash of $800,000,000, balances with other banks (including cash items in pro
cess of collection) of $7**400,000,000, and reserve with Federal Reserve banks of
$10,500,000,000, a total of $18,700,000,000, decreased $1,500,000,000 since Decem
ber but increased $1,000,000,000 since June of last year.
The unlspaired capita! stock of the banks on June 29, 19*46 was $1,68*4,000,000,
including $*47,000,000 of preferred stock.
Surplus was $2,100,000,000, undivided
profits $789,000,000, and reserves $301,000,000, or a total of $3 ,190,000,000.
Total capital accounts of $*4,87*4,000,000, were respectively $218,000,000 and
$*401,000,000 more than on December
Jl,
19*45, and June 30, 19*45*
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING- NEWSPAPERS
* vj C.
J 9 (J i> .
I T
Press Service
No.
The total assets of national hanks on June 29 of this year amounted to nearly
$86,000,000,000, it was announced today by Comptroller of the Currency Preston
Delano.
The returns from the call covered the 5,018 active national banks in the
United States and possessions.
The assets were $4,500,000,000, or 5 percent, less
than those reported by the 5,023 active national banks as of December 3 1 , 1945 , the
date of the previous call, but an increase of $4,000,000,000, or 5 percent, over the
amount reported by the 5»021 active banks as of June 30, 1945 .
The deposits of national banks on June 29, 1946, were more than $80,000,000,000,
a decrease since December of $4,700,000,000, or 5 percent, but an increase of
$3,700,000,000, or nearly 5 percent, since June of last year.
Included in the recent
deposit figures are demand and time deposits of individuals, partnerships, and corpo
rations of $^2 ,600,000,000 and $1 7 ,200,000,000, respectively, which showed sizable
increases over the previous December and June figures.
Also included in the current
figures are United States Government deposits, including War loan accounts, of
$7,700,000,000, which decreased $6,500,000,000 in the six months; deposits of States
and political subdivisions of $4,000,000,000, an increase of $500,000,000 since De
cember; postal savings of nearly $3 ,000,000; certified and cashiers* checks, etc. of
$1,241,000,000, and deposits of banks of $7 ,800,000,000, the latter showing a de
crease of 15 percent since December.
Loans and discounts were $14,500,000,000, which was an increase of $550,000,000,
or 4 percent, since December. In the total of loans were commercial and Industrial
advances of $6 ,100,000,000, an Increase of more than 7 percent in six months; real
estate loans of $2 ,750 ,000,000, which were up 24 percent; loans to brokers and
^purchasing or carrying securities of $2 ,560,000,000*
a decrease of 25 percent; agricultural loans of $700,000,000, consumer loans of
nearly $1,500,000,000, and other loans of $900,000,000.
The percentage of loans and
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS
Friday, August 30, 1946.
Press Service
No. S-65
The total assets of national banks on June 29 of this year amounted to
nearly $86,000,000,000, it was announced today by Comptroller of the
Currency Preston Delano. The returns from the call covered the 5*018 active
national banks in the United States and possessions. The assets were
$4*500,000*000, or 5 percent, less than those reported by the 5*023 active
national banks as of December 31* 1945* the date of the previous call, but
an increase of $4*000,000,000, or 5 percent, over the amount reported by the
5,021 active banks as of June 30, 1945*
The deposits of national banks on June 29, 1946, were more than
$80,000,000*000, a decrease since December of $4,700,000,000, or 5 percent,
but an increase of $3*700,000,000, or nearly 5 percent, since June of last
year. Included in the recent deposit figures are demand and time deposits
of individuals, partnerships, and cox-porations of $42,600,000,000 and
$17,200,000,000, respectively, which showed sizable increases over the
previous December and June figures. Also included in the current figures
are United States Government deposits, including War loan accounts, of
$7*700,000,000, which decreased $6,500,000,000 in the six months; deposits
of States and political subdivisions of $4*000,000,000, an increase of
$500,000,000 since December; postal savings of nearly $3,000,000; certified
and cashiers' checks, etc. of $1,241*000,000, and deposits of banks of
$7,800,000,000, the latter showing a decrease of 15 percent since December*
Loans and discounts were $14*500,000,000, which was. an increase of
$550,000,000, or 4 percent, since December. In the total of loans were
commercial and industrial advances of $6,100,000,000, an increase of more
than 7 percent in six months;, real estate loans of $2,750,000,000, which
were up 24 percent; loans to brokers and dealers in securities and to
others for purchasing or carrying securities of $2,560,000,000, a decrease
of 25 percent; agricultural loans of $700*000,000, consumer loans of
nearly $1,500,000,000, and other loans of $900,000,000. The percentage of
loans and discounts to total deposits on June 29* 1946 was 18.01, in
comparison with 16.36 on December 31* 1945, and 16.13 on Juno 30, 1945*
Investments by the banks in United States Government obligations
(including $7,000,000 guaranteed obligations) as of June 29, 1946
aggregated $47*500,000,000, which was a decrease of $4*000,000,000, or
nearly 8 percent, in the amount reported as of December 31* 1945* but an
increase of $200,000,000, or one-half percent, over the amount reported
as of June 1945* Other bonds, stocks and securities held of $4,500,000,000,
which included obligations of States and political subdivisions of
$2,500,000,000, showed an increase of $400,000,000 since December and an
increase of $800,000,000 in the year.
Cash of $800,000,900, balances with other banks (including cash items
in process of collection) of $7,400,000,000, and reserve with Federal
Reserve banks of $10,500,000,000, a total of $18,-700,000,000,; decreased
$1,500,000,000 since December but increased $1,000,000,000 since June of
last year.
2 ~
The unimnaired capital stock of the banks on June 29, 194-6 was
$1,684-,000,000, including $4-7,000,000 of preferred stock.. Surplus was
$2,100,000,000, undivided profits $789,000,000, and reserves ^$01,
,
,
or a total of $3,190,000,000. Total capital accounts of b4,374,000,000,
were respectively $218,000,000 and ^401,000,000 more tnan on .
December 31, 1945, and June 30, 1945*
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Washington
m
mmim
Press Servies
« i ,
Auimst JjU 19b6«
fhm Secretary
S - ^ S '
of tbe Treasury announced last evening that the tenders fur
$1,300»000,000, or theresbeuts, ef 91~<lay Treasury Mils to be dated September $ end to
aature Deeeaber $, 191*6» «hieb «er* offered on August 2îf 19M>, «ere opened et the
Aiderai Beeerve Banks on August 30»
The stalls of this isms» ere as follows:
Total allied for « $1 ,8X2,315,000
Total accepted
* 1,309*005,000
Average price
(includes $27»995#Q0O entered on a fixed-price
basis at 99*905 and accepted in fall)
- 99*905/ Equivalent rate of discount approx* 0*3?5jt per anmia
tangs of accepted competitive bids:
** 99*90? Equivalent rate of discount approx* 0 *368$ per annual
- 99*905
11
*
•
*
«
0*3?6$ *
*
in#!
tee
(TO percent of tbs secant bid for at the low price «as accspted)
Federal Reserve
ftUtriet
Total
Applied for
Total
Boston
las fork
Philadelphia
$
I
I8,ii25,000
23,025,000
1*393,562,000
992.182.000
29,720,000
6 ,215*000
17,360,000
17.9I|S,000
2,370,000
16,595,000
2.290.000
255,535*000
180.535.000
4 at
ff 7,200,000
3^,000
Kansas City
12,7l»0,000
6.150.000
2.925.000
11,600,000
5 ,260,000
56,138,000
(Xtoveland
Richmond
Atlanta
Chicago
Si. Louis
frail««
5
Ä
W
San Francisco
sa w .
#1,812,315,000
5,025,000
11,309,005,000
!
TREASURY DEPARTMENT
Washington
P O E I M M E D I A T E RELEASE,
Friday, A u g u s t 30» 1946,
P r ess S e r vice
No. S-67
The S e c r e t a r y of the T r e a s u r y t o d a y a n n o u n c e d the f i n a l
s u b s c r i p t i o n a n d a l l o t m e n t f i g ures w i t h r e s p e c t to the current
o f f e r i n g of
7/8
pe 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
of Series H-1947-.
S u b s c r i p t i o n s f o r amounts
of Indeb t e d n e s s
up to a n d i n
cluding $>2 5 ,0 0 0 were a l l o t t e d in ful l a n d a m o u n t e d to
$39,109,000.
S u b s c r i p t i o n s a n d a l l o t m e n t s wer e
eral F e d e r a l R e s e r v e Dis ¡riots a n d the
Federal Reserve
D i s t r i c t _____
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St-. Louis
Minneapolis
Kansas C i t y
Dallas
S an F r a n c i s c o
Treasury
TOTAL
di v i d e d among the s e v
T r e a s u r y as f o l lows :
Total Sub s c r i p tions R e c e i v e d
#
83,740,000
2,944,957,000
56.269.000
95.089.000
41.151.000
75.571.000
299.550.000
61.128.000
63.906.000
. 125,770,000
54.268.000
242.444.000
1,011,000-
$4,144,854,000
T o t a l Subscriptions Allotted
$
' 47, 617,000
1,651, 403,000
31, 965,000
54, 438,000 1
23, 765,000 1
A g •341,000
I 7 O, 733,000
36, 082,000
39, 225,000
73, 555,000
3 1 ,272 .,0 00
If 6, 627,000
620,000
$2,340, 643,000
TREASURY DEPARTMENT
Washington
FDR IMMEDIATE RELEASE,
Friday« August 30« 1946*
Press Service
JJ1- Q,
The Secretary of the Treasury today announced the final subscription and
allotment figures with respect to the current offering of 7/8 percent TreasuryCertificates of Indebtedness of Series H-1947*
Subscriptions for amounts up to
and including $25 ,GOO were allotted in full and amounted to $39,109,000*
Subscriptions and allotments were divided among the several Federal Re
serve Districts and the Treasury as follows:
Federal Reserve
District
Total Subscriptions Received
Total Subscriptions Allotted
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St* Louis
Minneapolis
Kansas City
Dallas
San Francisco
Treasury
i
83,740,000
2,944,957,000
56,269,000
95,089,000
4 1 ,151,000
75,571,000
299,550,000
6 1 ,128,000
63,906,000
125,770,000
54,268,OCX)
242,444,000
... L
M
%
$4,144,854,000
$2 ,340,643,000
TOTAL
47,617,000
1,651,403,000
31,965,000
54,438,000
23 ,765,000
43,341,000
170,733,000
36,082,000
39,225,000
73,555,000
3 1 ,272,000
136 ,627,000
620.000
TREASURY DEPARTMENT
Washington
EOR RELEASE, MORNING NEWSPAPERS,
Saturday, August 5P> 1946,
Press Release
No. S-66
At the request of President Roxas and concurrently with
the establishment by the Philippine Government of its own
Poreign Funds Control, the U. S% Treasury Department announced
today the termination of its freezing controls in the Philip
pines and the closing of its Foreign Funds Control Office in
Manila.
In addition, the blocking controls over Philippine
property in the United States were lifted.
Treasury officials pointed out that the freezing con
trols were re-established in the Philippines shortly after
their liberation to assist in controlling enemy-owned assets
and the activities of suspected collaborators.
General Ruling No, 18, as amended today, provides that
for the purposes of the freezing regulations the Philippines
shall be treated as an unblocked country and as a part of the
generally licensed trade area, as defined in General License
No. 53*
Thus all licenses applicable to the generally licensed
trade area, including General Licenses Nos. 53 and 53A, are
automatically extended to the Philippines.
The amendment also Waives the provisions of General Ruling
No, 5 with respect to importations of securities and currency
from the Philippines.
oOo
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS
Press Service
No.S-66
At the request of President Roxas and concurrently with
the establishment by the Philippine Government of its own Foreign
Funds Control, the U. S. Treasury Department announce^ today the
termination of its freezing controls in the Philippines and the
closing of its foreign Funds Control Office in Manila. !ln addi
tion, the blocking controls over Philippine property in the United
States were lifted. ¿Treasury officials pointed out that the
freezing controls were re-established in the Philippines shortly
after their liberation to assist in controlling enemy-owned assets
and the activities of suspected collaborators.
Ruling No. 18, as amended today, provides that
for the purposes of the freezing regulations the Philippines shall
be treated as an unblocked country and as a part of the generally
licensed trade area, as defined in General License No. 53. Thus
all licenses applicable to the generally licensed trade area,
including General Licenses Nos. 53 and 53A, are automatically
extended to the Philippines. )The^ amendment also waives the
provisions of General Ruling No. 5 with respect to importations
of securities and currency from the Philippines.
-oooOooo-
TREASURY DEPARTMENT
Washington
FOR R E L E A S E , M O R N I N G NEWSPAPERS,
Saturday, A u g u s t 51, 1946.______
Press Service
No. S-68
t
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 evening that
the
tenders
for $ 1 , 3 0 0 , 0 0 0 , 0 0 0 ,
T r e a s u r y h i lls
1946,
of 91**day
to be d a t e d S e p t e m b e r 5 and to m a t u r e D e c e m b e r 5,
w h i c h were
Federal
or thereabouts,
of f e r e d on A u g u s t
Reserve Banks on A u g u s t
The details
of this
27,
1940, were
opened at the
30.
issue are as follows :
T o tal a p p l i e d for - # 1 , 8 1 2 , 3 1 5 , 0 0 0
T o tal a c c e p t e d
1,309,005,000
(includes # 2 7 , 9 9 5 , 0 0 0 e n t ered
on a fixe d - p r i c e basis at
99.9 0 5 and ac c e p t e d in full)
- 9 9 . 9 0 5 / E q u i v a l e n t rate of d i s c o u n t approx.
0 . 3 7 5 / p er a n n u m
Av e r a g e price
R a nge
of a c c e p t e d
competitive bids:
H i g h - . 9 9 . 9 0 7 E q u i v a l e n t rate
L ow
- 99.905
,f
n
of d i s c o u n t approx.
M
M
$
(70 percent
for at the low price was accepted)
o f the amount b i d
0 . 3 6 8 / p er a n n u m
0.376/
,T
,r
Federal Reserve
District
T o tal
A p p l i e d for
Total
A c c e p t e d ______
Boston
New York
Philadelphia
Cleveland
Ri c h m o n d
Atlanta
C h icago
St. Louis
Minneapolis
Kansas City
D a llas
San Fra n c i s c o
#
#
TOTAL
1 8 , 4 2 5 ;000
1 , 3 8 3 , 5 6 2 „000
23.720.000
6.215.000
17.945.000
2.370.000
255,535,000
7.200.000
3.455.000
1 2.740.000
5.460.000
75.688.000
#1,812,315,000
oOi
13,025,000
992.182.000
17.360.000
5.015.000
16.595.000
2. 2 8 0 . 0 0 0
180.535.000
6 . 1 50.000
2.9 1 5 . 0 0 0
11.600.000
•5,160,000
56,1 8 8 , 0 0 0
#1,309,005,000
XXEM
- 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.
'i
■•
XKSM
-2-
Immediately after the closing hour, tenders will be opened at the Federal
Reserve Banks and Branches, following which public announcement will be made
by the Secretary of the Treasury of the amount and price range of accepted
bids.
Those submitting tenders will be advised of the acceptance or rejection
thereof.
The Secretary of the Treasury expressly reserves the right to accept
or reject any or all tenders, in whole or in part, and his action in any such
respect shall be final.
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
September 12. 19ii6
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 ll£ 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
m e n
TREASURY DEPARTMENT
Washington
5 - ^
FOR RELEASE , MORNING NEWSPAPERS
Friday» September 6 , 19lt6____ _
f
The Secretary of the Treasury, by this public notice, invites tenders for
$ 1,300,000»000
, or thereabouts, o f '
?1
-day Treasury bills, to be issued
on a discount basis under competitive and fixed-price bidding as lereinafter
provided.
The bills of this series
will mature
out interest.
December 12. 19k6
Trill
be dated
September 12. 19ii6
, v;hen the face amount
rill
> and
be payable rith-
They rill be issued in bearer form only, and in denominations
of $1,000, $£,000, $10,000, $100,000, $£00,000, and $1,000,000 (maturity value).
Tenders rill be received at Federal Reserve Banks and Branches up to the
closing hour, tro o ’clock p.m., Eastern Standard time, Monday, September 9. 19it6»
W "
Tenders rill 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, rith not more than three decimals, e. g., 99 .92£.
Fractions may not be used.
It is urged that tenders be made on the printed
forms and forrarded in the special envelopes rhich rill be supplied by Federal
Reserve Banks or Branches on application therefor.
Tenders rill be received rithout 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
EOR RELEASE, MORN!
NEWSPAPERS,
Friday, September 6 , 1946
i
Press Serioe
No. S-69
The Secretary of the Treasury, by this nublic rntirp'
9 1 ~ d a y % i e a s u r v b W i f ’P W 0 0 0 ’° ° Y
°r ^ e r e l b o u t s . ^ o f
^
competitive and f P E ’ 1° V f f ' 6'1 °n a disc° ™ t basis under
The bills of thiq
lc?1^
as hereinafter provided*
^
¡
I
s ^a u n T w h l
and will mature December
iiDbuea.in
Dearer
f o i T S g f a nd i f P l W f.f f P . P 119?
i^ued, in bearer
ii-, __
7m
viouuiiu.ua
biuua uj
k*
~> non <
n:
denominations
of. dbJ_,UUU.
$1,000, S
$5,000,
$10,000,
$100,000, $ 500 ,000 , and $1,000,000 (maturity value)!
Branches^uPto^tbPrOy?eiv®d at
^rancnes up to the closing hour,
Standard
time,
Monday,
be rpopivpfl
p-f- 4
-y,~ rrw.l~September
«
^
tender musl ^
federal Reserve Banks and"
two o’clock t>»mw Paqtprn
9,
f -1946.
L m uTenders
e r s will
will rmt
not
I S
S
’t h f S i c e
d\ lma6g r S
eSeg
d * a g £ ? * »
Sfiox2 4 «
1 hH ;
P?L?ed forms
htr ]70i 4 n
sPecial envelopes which will be sunnl*! pd
bj Federal Reserve Banks or Branches on application t t e t e !
TenfeJs w- ^ ’ be received without deposit from 'incornoratpd
banks and trust companies and from responsible and recosnizpd
dealers in investment securities. Tenders fro m nihoT-J fv' + \
accompanied by payment of 2 percent of the face amount of
•
by arlerprelsluarant” o ° l Unlef .the tenders are accompanied
trust cimplnyl
J
Payment by an incorporated bank or
at the Federal Reserve Banks and Iranc^ s P ^ o S o w W s which^“^
public announcement will be made'by the Secretarv of
of^the amount and price range of a L e p t e f w I s Y L b L e s u f 633^
mittmg
advised
of
acceptance or rejection
th
p r p n f tenaers
m l : will
7 be
^ ovav
x c ms w U
± mthe
e accept;
r i s h t to n p he ^ e c r e t a r y of t h e T r e a s u r y expre; ¡ly reserves the
nafW
m
P t °r r e ? ect a n y or a l l tenders, in w h o l e or in
2n 1
c nd nls a c t i o n in 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
c?nhioo+
to these reser v a t i o n s , tenders fo r ftonn non
i
u n a i . subject
one bidder at 99 ,90 5 ¿ « S o n a f l S f f i c \ l T l t w f W
accepted irrfull. Payment of accepted tenders at the Pices
offered must be made or comnletrd £+ + u n S *
f ntile Prices
in
cash
or
other
immediatelv
1
«
m Y l P?deral Reserve Bank
1946 .
immediately availaole funds on September 12,
FOREIGN FUNDS CONTROL
J± .(Kpom) •
U fw
.
v f e ...
f (Bldg.)
(Room)
Q jx X Â .c £ ji-d
\
â
y
(Bldg.)
£ ldg.)
1
yìA-DOl
J\ <?S?QCkA f
LAjQ/ULf& ^
^
/Qau^Lp $
^OLe^cAu^)
From
a
<S*AûaJ
.
Ot^y^
<*-
jOl-ÊXUO
J^ACj CT**^
hiik A< O »A ^n fr? ~t
.
(Date)
GTON
PRESS SERVICE
No.
S-70
oday to o k a c tio n to p lace
i th e U nited S ta te s in th e same
I s as American c i t i z e n s . This
teneral L ic e n se No. 42 which
ted S ta te s who was not in a
i, and any o rg a n iz a tio n blocked
¿ T \ p ^ w ^ <'
l in d iv id u a l.
Treasury o f f i c i a l s
lim ilar lic e n s e s , persons lic e n s e d
iot au th orized to engage in tr a n s ;y o f , blocked n a tio n a ls*
m oral R u lin g No* 11A issu ed
. not apply to German and Japanese
ice December 7, 1941 have been
i any other t e r r it o r y while i t was
WASHINGTON
POR RELEASE, MORNING NEWSPAPERS
PRESS SERVICE
August 27, 19^6
No.
S-70
The Treasury Department today took action to place
practically all foreign persons in the United States in the same
position under the freezing controls as American citizens. This
was done through an amendment of General License No. 42 which
unblocks any individual in the United States who was not in a
blocked country on October 5, 1945, and any organization blocked
because of the interest of such an individual. Treasury officials
pointed out that, as under other similar licenses, persons licensed
under General License No* 42 are not authorized to engage in trans
actions with, or involving property of, blocked nationals*
Furthermore, by an amendment of General Ruling No* 11A issued
today, General License No* 42 will not apply to German and Japanese
citizens or subjects who on or since December 7, 1941 have been
within Germany and Japan or within any other territory while it was
occupied by those countries.
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS
Tuesday, August 27, 1946_______
Press Service
No. S-70
The Treasury Department today took action to place practi
cally all foreign persons in the United States in the same position
under the freezing controls as American citizens.
This was done
through an amendment of General License No. 42 which unblocks any in
dividual in the United States who was not in a blocked country on
October 5, 1945» and any organization blocked because of the interest
of such an individual. Treasury officials pointed out that, as under
other similar licenses, persons licensed under General License No, 42
are not authorized to engage in 'transactions with, or involving prop
erty of, blocked nationals.
Furthermore, by an amendment of General
Ruling No. H A issued today, General License No. 42 will not apply to
German and Japanese citizens or subjects who on or since December 7,
1941 have been within Germany and Japan or within any other territory
while it was occupied by those countries.
-ooOoo-
Treasury Department
FOREIGN FUNDS CONTROL
Au gu s t 27 , 1946
AMENDMENT TO GENERAL LICENSE NO. 42
UNDER EXECUTIVE ORDER NO. 8389, AS AMENDED, EXECUTIVE ORDER NO. 9193,
AS AMENDED, SECTION 5 (b) OF THE TRADING WITH THE ENEMY ACT, AS AMENDED
BY THE FIRST WAR POWERS ACT, 1941, RELATING TO FOREIGN FUNDS CONTROL.*
General License No. 42 is hereby amended to read as follows:
GENERALLY LICENSING INDIVIDUALS IN THE UNITED STATES AND CERTAIN
ORGANIZATIONS
(1) Persons licensed, A general license is hereby granted li
censing as a generally licensed national
(a)
any individual in the United States, except an indi
vidual who on October 5, 1945 was in a blocked country
other than a member of the generally licensed trade
area, and
(b)
any partnership, association, corporation, or other
organization which is a national of a blocked country
solely by reason of the interest of persons licensed
hereby.
(2) De fin i tjon. The term “ blocked country” shall be deemed to
include all countries licensed by General License No. 94 except a
country licensed by General License No. 96.
E. H. FOLEY, JR.
Acting
Secretary
of
the
Treasury
* Part 131S - Sec. 5(b), 40 Stat. 415 and 966; Sec. 2, 48 Stat. 1; 54 Stat. 179; 55 Stat.
838; Sec. 3, Pub. No. 485, 79th Cong.; Ex. Order 8389. April 10, 1940, as amended by Ex.
Order 8785. June 14, 1941. Ex. Order 8832. July 26, 1941. Ex. Order 8963. Dec. 9, 1941,
and Ex. Order 8998, Dec. 26, 1941; Ex. Order 9193, July 6, 1942, as amended by Ex. Order
9567. June 8, 1945; Ex. Order 9747» July 3, 1946; Regulations, April 10, 1940, as amended
June M , 1941, »July 26, 1941. and February 19, 1946.
STATUTORY DEBT LIMITATION
AS OP AUGUST 31, 19%5
'
^
, L /¿A
/ /
Section 21 of the Second Liberty Bond Actf 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 Secretaxy of the Treasury), Hshall not exceed in the
aggregate $275 ,000,000,000 outstanding at any one time. For purposes of this section
the current redemption value of any obligation issued on a discount basis which is
redeemable prior to maturity at the option of the holder shall be considered as its
face amount. 8
The following table shows the face amount of obligations outstanding and the face
amount which can still be issued under this limitation:
Total face amount that may be outstanding at any one time
Outstanding August 31» 19^6
Obligations issued under Second Liberty Bond Act, as amended
Interest-bearing
Treasury bills.......... ......$ 17,023,753,000
Certificates of indebtedness....
36>^73»367*000
Treasury notes............. .
20.039.0*«).800 $ 73 ,536,160,800
Bonds
Treasury.................... 119,322,902,1*50
fSavings (current redemp. value) 10,577,532,876
Depositary.................
^00,251.500
Special Funds
Certificates of indebtedness..
11,135,000,000
Treasury notes..............
12.509,057.000
Total interest-bearing................... .
Matured, interest-ceased.......................
Bearing no interest
War savings stamps............
87,759*582
Excess profits tax refund bonds. ______55.035.166
Total......... ............... ..... ...... .
Guaranteed obligations (not held by Treasury)
Interest-bearing
Debentures: F.H.A.... .
1*3,236,586
Demand obligations: C.C.C. ...
326.591.531
Matured, interest-ceased........ ............ .
$ 2 7 5 . 000 , 000,000
169 ,200,586,826
g3 . w 3 .057 .00 p
266,179,204,626
279.357.075
. .. IJl.M.Jjtg
2 6 6 , 590 , 9 4 6 ,4 4 9
369,728,117
8 .906,250
378,634,367
2 6 6 .Q6 q .5gQ,jli
Grand total out standing........ ................ ..................
Balance face amount of obligations issuable under above authority.......
Reconcilement with Statement of the Public Debt - August 3 1 , 1956
(Daily Statement of the United States Treasury, Sept. 3 , 1956)
Outstanding August 31» 1956
Total gross public debt ............ . ............ ................
267,5^5 ,81«),901
Guaranteed obligations not owned by the Treasury......... ..........
373 i l
Total gross public debt and guaranteed obligations ..................
267,9^5157572»!
Deduct - other outstanding public debt obligations
not subject to debt limitation .....................*........
95^
266,969,580.®
RHMulroe/MAD
8/4/46
5
- H
STATUTORY DEBT LIMITATION
AS OF AUGUST 31. 1946
September 6, 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 $275,000,000,000 outstanding at any one time, ^or
purposes of this section the current redemption value of any obligation issued on
a discount basis which is redeemable prior to maturity at the option of the holder
shall be considered as its face amount.“
The following table shows the face amount of obligations outstanding and the
race amount which can still be issued under this limitation:
Total face amount that may be outstanding at any one time
$275 000 000 000
Jutstanding August 31, I946
’ *
Obligations issued under. Second Liberty Bond Act, as amended
Interest-bearing
Treasury bills............
$ 17,023,753,000
Certificates of indebtedness
36,473,367,000
Treasury notes.............
20,039.040.800 & 73,536,160,800
Bonds
Treasury.............. .
119,322,902,450
Savings (current redemp, value) 49,477,432,876
Deposi tary..... ..... ..
400.251.500
Special Funds
Certificates of indebtedness 11,134,000,000
Treasury notes.... .......
12.309.057.000
Total interest-bearing..... ........... .
Matured, interest—ceased
Bearing no interest
War-savings stamps.......... ...
$7 74,9 532
T Excess profits tax refund bonds., 44 !035!166
.
#,B
Guaranteed obligations (not held by Treasury)
In tere st—beari ng
Debentures: F.H.A. .... ......
43,236,586
Demand obligations: C.C.C. ....
Matured, interest-ceased..........
169,200,586,826
23.443.057.000
266,179,804,626
279 357 075
’
*
131.784.748
266.590.946.449
369,728,117
8.906.250
378.634.367
Grand total outstanding............................
palanco face amount of obligations issuable under above authority...
266.969.580.816
8.030.419.184
Reconcilement with Statement of the Public
Debt
-- P
P
August 31, 1946
v, ,
lDaily Statement of the United States Treasury, Sept. 3. 194Ó)
Jutstanding August 31, 1946
*
Total gros public debt.................. ...... .
267,545,840,901
uaranteed obligations not owned by the Treasury.,
____ 378.634.367
,
gross public debt and guaranteed obligations,
267,924,475,268
educt - other outstanding public debt obligations
not subject to debt limitation .............
954.894.452
266.969.580.816
S-71
TH3ASUHY BSPABTMSNT
Washingten pBgMpt
HSI&ASB M O M ING- NSWSPAPBBS
Friday, September 10, 1946
~Ko S -
Secretary Snyder tedny anneunced the appeintment ef Dean Id M.
Merritt as Asseciate Cemmissiener ef the Public Debt*
Mr* Merritt, a satire ef leva City» Iewa, has been with the Treasury
past twelve aenths/li JHMu served as Acting Deputy Cemmissiener in charge
®f Public Debt*s field effice.
Prier te his Chlcage assignment Mr, Merritt Bnent several years in
San Prancisce as fiscal representative ef the Treasury Department*
TREASURY DEPARTMENT
Washington
FOR RELEASE, M O R N I N G NEWSPAPERS,
Tuesday, S e p t e m b e r IQ, 1946 '
Press Service
No'. S-72
S e c r e t a r y S n y d e r t o day announced the a p p o i n t m e n t
of
D o n a l d M. M e r r i t t as Ass o c i a t e C Q m m i s s i o n e r of the P u b l i c Debt.
Mr. Merritt,
a nat i v e of Iowa City,
the T r e a s u r y D e p a r t m e n t since 1935,
and
Iowa,
has b e e n w i t h
comes to W a s h i n g t o n from
Chicago w h e r e for the last twelve months he served as A c t i n g
D e p u t y C o m m i s s i o n e r in charge of Public D e b t ’s field office.
Prior to his Chicago assignment Mr. M e r ritt snent
years
in San Francisco as fiscal r e p r e s entative
several
of the T r e a s u r y
Department•
0O0
/
fb® Seerotary of the treasury announced last evening that the tenders for
$1,300, *000,000, ar thereabouts, of finder T*easary M 2 1 s to bo doted Septaaaber 12 and
to nature December 12* 191*6, ahlch sere offered on September %
191*6» *»*« opened at
the floral J&§ii@3f*8 Banka an September 9*
the d etail* of th is issue are aa falXessu
Total applied for
Total
ai a
l^&i^.OOO
price baaia at
and accepted in foil)
rate of discount approx. 0.375$ per annua
*1^000
Average price
bids*
** 99*907 Equivalent rate of discount approx. 0.363$ per a w
- 99*90$
f
*
* : 11
*
0.376$ •
*
(70 percent of tas
m & m t bid
for at the la* price eaa accepted)
Total
San Francisco
torn.
$1 ,801,999,000
Total
Accepted
TREASURY D E P A R T M E N T
W a s h ington
POR RELEASE, MORNING- N E W S P A P E R S ,
Tuesday, S e p t e m b e r IO, Ì 94-6
press Service
No . S - 7 ^
The S e c r e t a r y of the T r e asury a n n o u n c e d last e v e n i n g that
the tenders for $1,300,000,00.0, or thereabouts, of 9 1 - d a y
Treasury bills to be dated S e p t e m b e r 12 a n d to matu r e D e c e m b e r
12, 1946, w h i c h were o f f e r e d on S e p t ember 6, 1946, were opened
at the f e d e r a l R e s e r v e Banks on S e p t e m b e r 9.
The details of this
issue are as follows:
Total a p p l i e d for
Total a c c e p t e d
$1,801,999,000
1 ,3 0 5 ,3 3 7 ,0 0 0
Average price
9 9 . 9 0 5 / Equiv.
Range
(includes $ 3 4 , 6 4 9 , 0 0 0 entered
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 i
rate of discount approx,
0 * 3 7 5 $ . per annum.
of a c c e p t e d competitive bids:
High - 99.907 Equiv.
Low
- 99.905
n
rate
»
of discount approx.
!i
»
«
0.368$ p e r a n n u m
0 . 376$ ~ »'
ti
(70 p e r c e n t of the a m o u n t bid f o r at the low p r ice was ac c e p t e d
F e d eral R e s e r v e
District
Boston
Hew Y o r k
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
r inneapolis
Kansas C i t y
Dallas
San F-rancisco
Total
A p p l i e d For
$
5,155,000
1, 3 6 9 , 8 3 9 , 0 0 0
3 2 , 8 28,000
2 2 , 5 30,000
5,860,000
7.950.000
275, 1 4 0 , 0 0 0
■}
12, 949,000
4 , 0 1 5,000
977.889.000
28,328,000
17.250.000
5 .1 1 0 .0 0 0
7 . 9 50.000
197.860.000
10.430.000
2.6 5 7 . 0 0 0
9.294.000
10.249.000
4 3 , 0 05,000
34.305.000
$1,801,999,000
337,000
1 3 , 8 8 0 ,0 0 0
2 . 657.000
10,206,000
TOTAL
Total
Accepted
POR IMMEDIATE RELEASE,
September 10^ 19U6«
m ¡¡I
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, a§ modified by the President’s proclamations of April 13, 1942,
and April 1 29, 1943, for the 12 months commencing May 29, 194& as follows:
Wheat
Country
of
Origin
I
Established
Quota
III.j
(Bushels)
:
Imports
jMay 29, 1946, to
JAugust 31 19k6*
(Busheia)
f
Canada
795,000
China
- !||
Hungary
Hong Kong
Japan
—
United Kingdom
100
Australia
. —
Germany
100
Syria
100
Hew Zealand
—
Chile
Netherlands
100
Argentina
2,000
Italy
100
'A
Cu]?a
Prance
1,000
Greece
Mexi co
100
Panama
Uruguay
—
Poland and Danzig
A
—
Sweden
Yugoslavia
* *»
Norway
—
...
Canary Islands
Rumania
1,000
Guat emala
100
Brazil
100
Union of Soviet
Socialist Republics
1Q0
3elgium
100’
600,000
3,815,000
24,000
13,000
13,000
8,000
75,000
1,000
5,000
"5,000
1,000
1,000
1,000
14,000,
2,000
12,000
1,000
1,000
1,000
1,000
1,000
liOOO
1,000
1,000
1,000
1,000
383,527
-
•M
mm
mm
mm
mm
'mm
mm
mmm
■mm
—
—
-
—
A
—
4,000,000
" '38tt'pSS
181
—
-
|gl —
■—
—
—
—
«*
—
—
—
—
—
—
Wheat flour, semolina,
crushed or cracked
wheat, and similar
wheat products
Established :
Imports
Quota
J May 29, 1946,
: to August 31«
(Pounds)
(Pounds) I9I16
IBT"
~0Qoi=*
A
A
—
—
-
-
a
—
83
- —
A
—
, —■^
-
TREASURY DEPARTMENT
Washington
FOR IMMEDIATE RELEASE,
Thursday,- September 12, 1946,
Press Service
No. 3-74
The Bureau of Customs announced today preliminary figures shewing 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, 194-1, as modified by the President's proclamations of April 13, 1942
and April 29, 1943, for the 12 months commencing May 29, 1946, as follows;
:
i
:
Wheat
Count iy
of
Origin
(Bushels)
:
Imports
jMay 29, 1946, to
:August 31, 1946.
(Bushels)
795,000
181
:Established
:
Quota
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 D an zi g
Sweden
Yugoslavia
Norway
Canary Islands
Rumania
Guatemala
Brazil
Union of Soviet
Socialist Republi
Belgium
Wheat flour, semolina,
crushed or cracked
wheat, and similar
wheat products
Established:
Imports
Quota
• May 29, 1946,
jto August 31, 1946.
(Pounds)
(Pounds)
i
•
•
3,815,000
24.000
383,527
13.000
13.000
8 ,0 0 0
75.000
1,000
5.000
5.000
100
100
100
1.000
1,000
1,000
14.000
2,000
12,000
1,000
100
2,000
100
1,000
1,000
100
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
100
100
100
100
800,000
181
- 0O 0-
4,000,000
384,366
-
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 ROVINO WASTE, WHETHER
OR NOT MANUFACTURED OR OTHERWISE ADVANCER 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 -thè following ......
countries: •
:-.United .Kingdom, France, Netherlands, Switzerland, Belgium.,....' ..
Germany, and Italy:
.
(In Pounds)
Country of Origin •;
*".
c
*
United Kingdom,.,,..
Canada......... . .. ,
Franc e.............•
British India.......
Netherlands.........
Switzerland........
Belgium.............
dcLlDctU,
China........ .
Egypt.... .... .
Cuba......... .
Germany,..........
Italy............ ..
TOTALS
Established : TOTAL IMPORTS
TOTAL QUOTA : Sept.- 20, 1945,
♦ to Sept.10,19^6
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
„
- .. .
69,627 - .
t‘
.
„
.
..
.
- ‘''
„
.
'r ...
„
5,482,509 “
69,627
1/ -Included in total imports, column 2
-oOo-
• ••
ESTABLISHED : IMPORT'S
33-1/3 of { Sept'.'-20, 194]
Total Quota
to Sept.10 1/
19^6
1,441,152 ......
i
_
—-
75,807
•• •_
■
—
22,747 •‘'
•' 14,796 •
■ 12,853 •••..... ....... - •‘* .... _ .
.......- ••' ...... w
- ' | jjfy ; -- ■
....... -]|j " g ■
■
— *• ’25,'443 •••
..i-7-088-■ •• ..... - 1,599,886’
FOR IMMEDIATE RELEASE
September 10, 19U6.
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 auotas established by the President-1g 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 September 10, 19li.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)
Staple length less
: Staple length l-LfB'1 or more
; but less tha^^L-ll/lS"
.
than 1-1/8"
;
.
Imports .Sept, : Established' :'/lmports Sept.
S| stablisheU: 20 , 1945, to :
. Quota
. 80, 194 , to y'
Ojuota
: Sept.lO,19li6 : 45,656,420
;\sk>t. 10,1$*^
:
Country ;of
* Origin -
*
1
;
Egypt"and the AngloEgyptian Sudan........
Peru. . . .......... ........
British India..... .....
Chi nnU ..rrt..T__ T. ..TMexico.................
Bra.?: id . T . . T................................. T .
Union- of Soviet
Socialist Republics...
Argentina,. ,.
,........
Hai t . . . . . . . . . . . . . . . . . .
Ecuador. . . . . . . . . . . . . . . . .
Honduras......
Paraguay. , . . ' . . . . . . . . . . . . .
Colombia.............. ...
Iraq........................... ...
British East Africa..,,.
Netherlands East Indies.
Barbados...............................................
Other British Vest
Indies 1/ . ♦ . ............. ...
Nigeria ............. .................. ...
Other British Uest
Africa 2/ ........... ...
Other French Africa. 3/..
Algeria and Tunisia.. . . .
i~
il
783,816
247,952
2,003,483
1,370,791
8,883,259
618,723
<
-
21(7,952
2,003,1(83
•
8,883,259
6*18 7 P 8
OAU
'
'
•
Ë]
Y
^
.........33,880,212
11,771,556
.............. ...
-
j »■
y
475,124
5,203
237
• 9,333
752
871
124
195
2,240
71,388
-
i
mm
'
....
.
mm
..............................................
W
/_
— '
1
0
X0
VV
.......................................... u,55i
.................................................
—
...
. . . .
..
.............
—
• —
mm
—
—
—
— - ■’
—
—
.
f
mm
21,321
5,377
mm
mm
mm
mm
mm
mm
16,004
689
14,516,882
1/
2/
3/
'' ‘
-
mm
mm
-
-
1
1 1
,7
5 3
, 1(17
45,656,420
Other than Barbados, Bermuda, Jamaica, Trinidad, and Tobago,
Other than Gold Coast and Nigeria.
Other than Algeria, Tunisia, and Madagascar,
1 (5
,
6 5 6
, 1(2 0
TREASURY DEPARTMENT'
Washington
FOR IMMEDIATE RELEASE,,
^Thursday,, September 12, 1946.
>
Press Service
No. S-75
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
Jane 29, 1942, during the period September 20, 1945, to September 10, 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 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
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.
Barbados, ...............
Other British Yfcst
Indies 1/,...........
Nigeria.........
Other British West
Africa 2/.... .
Other French Africa 3/,.
Algeria and Tunisia....
i . .Staple length.less. : Staple length 1-1/8" or more .
:
than 1-l/S"
:
but less than 1-11/1611
:
:Imports Sept.: Established :Imports Sept. 20,
:Established 20, 1945, to :
Quota
:1945, to
:
Quota :Sept.10, 1946: 45,656,420. iSeptw 10, 1946.
783,816
247,952
2,003,433
1,370,791
8,883,259
618,723
8,883,259
618,723
100
-
-
-
-
-
—
—
21,321
5,377
-
16,004
689
-
14,516,882
1/
2/
3/
33,880,212
11,771,556
-
4,551
475,124
5,203
237
9,333
752
871
124
195
2,240
71,388
—
247,952
2,003,483
1
-
11,753,417
—
45,656,420
Other than Barbados, Bermuda, Jamaica, Trinidad, and Tobago,
Other than Gold Coast and Nigeria.
Other than Algeria, Tunisia, and Madagascar.
45,656,420
- 2 -
COTTON CARD STRIPS made from cottons having a staple of less than 1-3/16 inches
in length, CCMBER 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)
Country of Origin
United Kingdom.....
Canada.... .......
France.............
British India.....
Netherlands.......
Switzerland.......
Belgium........ .
Japan, .......... ..
China........ .
Egypt.............
Cuba..............
Germany...........
Italy.............
...
1/
. TOTALS
Established
TOTAL QUOTA
TOTAL IMPORTS
: ESTABLISHED s
IMPORTS
Sept. 20, 1945, : 33-1/3# of iSept. 20, 1945,
to Sept« 10,1946: Total Quota sto Sept.10,19461/
4,323,457
239,690
227,420
69,627
68,240
44,388
38,559
341,535
17,322
S, 135
6,544
76,329
21,263
_
—
—
69,627
-
—
-
1,441,152
—
75,807
«
22,747
14,796
12,853
—
—
—
—
25,443
7,088
5,482,509
69,627
1,599,886
-
- ■
<-r
—
-
Included in total imports, column 2.
-oOo-
—
—
—
_
—
—
—
—
—
_
—
—
-
S-7Ù,
TOH IMMEDUTB EELEASE
September 10 « 19^6
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 August 31 # 19^®» inclusive,
as followsi
e
e
Commodity
Unit
! Imports as
of
:of August 31
Established Quota
:
Quantity
:
19^6
Period and Country : Quantity :
Whole Milk, fresh
or sour
Calendar Tear
3,000,000
Oallon
6,739
Cream, fresh or sour
Calendar Tear
1,500,000
Callon
1.651
fish, fresh or frozen
filleted, etc,» cod,
haddock, hake, pollock,
cusk, and rosefish
Calendar year
2 0 ,ysojz%
Pound
Quota filled
90,000,000
60,000,000
Pound
Pound
Quota filled
1,569.237
White or Irish potatoes:
12 months from
Sept. 1 5 , 19 »I5
certified seed
other
Cuban filler tobacco un
stemmed or stemmed (other
than cigarette leaf tobacco)
Calendar Tear
and scrap tobacco
Pound
(un stemmed
Quota
22,000,000 equivalent) Billed
9^2,067
Bed cedar shingles
Calendar Tear
1,396,^3
Square
Molasses and sugar sirups
containing soluble non
sugar solids equal to more
than 6$ of total soluble
solids
Calendar Tear
1,500,000
Callón
3^S,6HS
67,012
Number
2^, $09
Silver or black foxes,
furs, and articles: Boxes
valued under $230 each
and whole furs and skins
fails
Paws, heads or other
separated parts
Piece plates
Articles, other than
piece plates
.
May-Nov. 19^6
All countries
12 months from
Dec. 1 , 19>45
*
5,000
Piece
ft
500
Pound
h90
ft
550
Pound
—
If
500
Unit
102
TREASURY DEPARTMENT
'Washington
FOR IMMEDIATE RELEASE,,
;Thursday, September Iff, 1946.
N Press Service
No. S-76
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 August 31, 194,6 , inclusive,
as follows:
Commodity
: Unit
Established Quota
:
of
Period and Country : Quantity :Quantity
: Imports as
:of August 31
:
1946
Whole Milk, fresh
or sour
Calendar Year
3,000,000
Gallon
6,739
Cream, fresh or sour
Calendar Year
1,500,000
Gallon
1,651
Fish, fresh or frozen
filleted, etc., cod,
haddock, hake, pollock,
cusk, and rosefish
Calendar Year
20,380,724
Pound
Quota filled
90,000,000
60,000,000
Pound
Pound
Quota filled
1,569,237
White or Irish potatoes:
12 months from
Sept. 15, 1945
certified seed
other
Cuban filler tobacco un
stemmed or stemmed (other
than cigarette leaf tobacco)
and scrap tobacco
Calendar Year
Pound
(unstemmed
22,000,000 equivalent)
Quota
Filled
Red cedar shingles
Calendar Year
1 ,396,423
Square
942,067
Molasses and sugar sirups
containing soluble non
sugar solids equal to more
than 6 of total soluble
solids
Calendar Year
1,500,000
Gallon
348,64«
Silver or black foxes,
furs, and articles: Foxes
valued under $250 each
and whole furs and skins
May-Nov. 1946
All countries
67,012
Number
24,809
12 months from
Dec. 1, 1945
.5,000
Piece
%
Tails
—
Paws, heads or other
separated parts
n
500
Pound
490
Piece plates
n
550
Pound
—
Articles, other than
piece plates
t!
500
Unit
102
-oOo-
mmi
- 3 -
solely redeemed or otherwise disposed of, and such "bills ere 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.
K1ZPM
-
2
-
Immediately after the closing hour, tenders will be opened at the Federal
Reserve Banks and Branches, following which public announcement will be made
by the Secretary of the Treasury of the amount and,price range of accepted
bids.
Those submitting tenders trill 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 trill 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
September 19. 19k6
ia&k
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.
bZ and
Under Sections
117 (a) (1) of the Internal Revenue Code, as amended by Section 1,15 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
ALEM
TREASURY DEPARTMENT
Washington
Jv- 7 7
FOR RELEASE, MORNING NEWSPAPERS„
Friday, September 13, 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
—
W
—
on a discount basis under competitive and fixed-price bidding as .hereinafter
~m ~
provided.
The bills of this series will be dated
September 19* 19U6
, and
W
will mature
December 19, 19U6
, when the face amount will be payable with----------------out interest. They will be issued in bearer form only, and in denominations
m
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, September 16, 19li6.
-----Tenders will not be received at the Treasury Department, Washington, Each
—m
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 NEWSPAPERS,
Friday, S e p t e m b e r 15, 1946______
Press Service
No. S-77
.
The S e c r e t a r y o f the Treasury, by this public notice, invites
tenders for $1,300 , 0 0 0 , 0 0 0 , or thereabouts, of 91-day T r e a s u r y
bills, to be issued on a discount basis u n der competitive and
fixed-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 d a t e d S e p t e m b e r 19, 1946, and will mature
De c e m b e r 19, 1946, when, the face amount will be payable w i t hout
interest*
T h e y w i l l be issued in b e a r e r form only, and in d e n o m i
nations of $1,000, $5,000, $10,000, $100,000, $ 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 eived at Federal Reserve Banks and Branches
up to the closing hour, two o ’clock p.m., E a s tern Standard time,
Monday, S e p t e m b e r 16, 1946.
Tenders will not be r e c e i v e d at the.
T r e asury Department, W a s h i n g t o n .
E a c h tender must be for an e ven
multiple o f $1,000, and the price offered must be expressed on
the basis of 100, w i t h not more t han 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 forwarded in the special envelopes w h i c h
will be supplied by Federal Reserve Banks or Branches on a p p l i c a
tion therefor.
T e n d e r s will be received w i t hout deposit f r o m incorporated
banks and trust companies and from responsible and rec o g n i z e d
dealers in investment securities.
Tenders from others must be
a c c o mpanied b y payment of 2 percent of the face amount 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 an express
guaranty o f payment by an incorporated b a n k or trust company.
I m m e d i a t e l y a f ter the closing hour, tenders w i l l be opened
at the Federal Reserve B a n k s and Branches, following w h i c h public
announcement will b e ‘made by the S e c r e t a r y of the T r e a s u r y of the
amount and p r i c e range of accepted bids.
T h ose submitting tenders
will be a d v i s e d of the acceptance or rejection thereof.
The
S e c r etary o f the T r e a s u r y expressly reserves the right to accept
or reject any or all tenders, in whole or in part, and his action
in any s u c h respect shall be final.
Subject to these reservations,
tenders for $ 2 0 0 , 0 0 0 or less from any one b i d d e r at 9 9 .905 entered
on a f i x e d -price basis will be ac c e p t e d in full.
Payment of a c
cepted tenders at the prices offered must be mad e or completed at
the Federal Reserve B a n k in cash or other i m m e d i a t e l y available
funds on S e p t e m b e r 19, 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 from the sale or other d i s p o s i t i o n o f the bills, shall not
have any exemption, as such, and loss f r o m the sale or other
-
2
.
-
d i s p o s i t i o n of T r e a s u r y b i lls shall not hav e any special t r e a t
ment, as such, u n d e r Federal T ax Acts n o w or h e r e a f t e r enacted.
T he b i l l s shall be subject to estate, inheritance, gift, or
other excise taxes, w h e t h e r Federal or State, but shall be exempt
from.all t a x a t i o n now or h e r e a f t e r i m p osed on the pri n c i p a l or
interest thereof by any State, or any of the p o s s e s s i o n s of the
U n i t e d States, or by a n y local taxing ^authority.
F o r purposes
of t a x a t i o n the a m ount o f d i s c o u n t at w h i c h T r e a s u r y bills are
o r i g i n a l l y sold by the U n i t e d Stat e s 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) (l) of the Internal
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 Revenue Act of
1941, the a m o u n t of discount at w h i c h b i l l s issued h e r e u n d e r are
sold shall not be c o n s i d e r e d to accrue u n t i l such b i lls shall be
sold, r e d e e m e d or ot h e r w i s e d i s p o s e d of, and such bills are ex
cluded from c o n s i d e r a t i o n as capital assets.
A ccordingly, the
owner of T r e a s u r y b i l l s (other tha n life insurance companies)
issued hereunder n e e d include in his income tax r e t u r n only the
d i f f e r e n c e b e t w e e n the price paid for such bills, w h e t h e r on
original issue or on subsequent purchase,' and the a m o u n t actually
received either u p o n sale or r e d e m p t i o n at m a t u r i t y during the
taxable year, f o r w h i c h the r e t u r n is made, as or 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 No. 418> as amended, and this
notice, p r e s cribe the terms o f thd T r e a s u r y b i l l s and g o v e r n the
conditions of their issue.
Copies of t h e c i r c u l a r m a y be obtained
from any Federal R e s e r v e B a n k or Branch.
oCo
3
investigation, have appeared in circulation.
Secretary Snyder praised the splendid cooperation given to
Secret Service agents by Captain James Maguire and Detectives
Thomas Sullivan and Thomas Crody of the New York Police Department.
All four of the accused men will be arraigned in New York
on conspiracy charges.
P a t e m e s t e r and Larkin will also face
charges of possession and sale of counterfeits in Newark.
SI
I»
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Lkè?
é
Actiae Cki.f M»le»»y als»
i* Tir^akimg the
tke efficieacy display»* ky his »seats
in£ riag»
2
to a r r e s tin g o f f i c e r s th a t he had brought 2,000 pounds o f sugar
from Albany and so ld i t to a Newark baker fo r 22 cen ts a pound.
A ctin g C h ie f o f th e S e cr e t S e r v ic e James J . Maloney s ta te s
th a t about th ree weeks ago a West Coast agen t, posing as a
ra c k e te e r and handler o f n a r c o tic s from Los Angeles and Mexico,
became acquainted w ith Soroka, who was the main d is t r ib u t e r o f
th ese n o te s .
The agent a s s o c ia te d w ith Soroka d a i l y in gain in g
h is co n fid en ce .
Soroka, who i s
c l a s s i f i e d by h is d r a f t board
as 4 -F , having a psych opathic p e r s o n a lity , was sq&p. on occasion
fo llo w in g the undercover agent to determine whether or not he
was tton the l e v e l •**
I n v e s tig a tio n determined th a t the c o u n te r fe it n o tes were
e v id e n tly the output o f former makers o f bogus OPA r a tio n coupons,
and th a t th e y had o r ig in a te d in Northern New J e r s e y .
A fte r h is
a r r e s t , Soroka, a l i a s "Meusey", bragged to agents th a t he had
made over $200,000 during the war in b la c k market a c t i v i t i e s ,
p a r t ic u la r ly in the s a le of c o u n te r fe it g a s o lin e , meat and
sugar coupons.
He adm itted th a t he i s now broke, having spent
a l l h is money in h igh l i v i n g .
The p r ic e agreed on by Soroka and the undercover agent fo r
the purchase o f the c o u n te r fe its was $7.00 per hundred d o ll a r s .
A fte r payment was made to Soroka fo r the $110,000 in c o u n te r fe its,
the accused man sensed a trap and attem pted to f l e e .
Only two o f the n otes manufactured in the Newark p r in t shop,
so f a r as the S e cre t S e rv ic e has been ab le to a s c e r ta in through
m
Secret Service
0,000 in
la r g e s t haul
in to custody
Wednesday afternoon in New York C i t y .
Soroka had ju s t d e liv e re d
a package co n tain in g the $110,000 in c o u n te r fe its to an under
cover agent o f the S e c r e t S e rv ic e a t a midtown h o te l*
Giarusso
was taken near th e home o f Soroka where he was w a itin g fo r the
return of Soroka to make payment fo r the c o u n te r fe its *
L a te r the same day Joseph P a te r n e ste r , p ro p ria to r o f a
p r in tin g p la n t in Newark, N* J * , was a rr e ste d by S e cr e t S e rv ice
agents as a lle g e d manufacturer o f the c o u n t e r fe it s *
In h is shop
the Treasury men found the n e g a tiv e fo r a c o u n te r fe it $ 2 0 -d o lla r
note and a s t r ip o f nine fak e sugar coupons*
E a r ly th is morning agents took in to custody George A* Larkin
in Newark, a lle g e d to have been a partner o f P a te rn e ste r in the
manufacture o f the bogus money.
In h is room, agents s e iz e d two
thousand sh eets o f gray paper which Larkin adm itted he intended
to use in p r in tin g c o u n te r fe it OPA sugar stamps*
He a ls o admitted
1
TREASURY DEPARTMENT
Washington
PROPOSED PRESS RELEASE
S e cre ta ry Snyder today announced the a r r e s t by S e cre t Service
agents o f four c o u n te r fe ite r s and the recovery o f #110,000 in
c o u n te r fe it tw e n ty -d o lla r Federal Reserve n o te s , the la r g e s t haul
o f bogus money taken in the p a st te n y e a r s .
Joseph Soroka and Joseph G. Giarusso were taken in to custody
Wednesday aftern oon in New York C i t y .
Soroka had ju s t d e liv e re d
a package co n tain in g the #110,000 in c o u n te r fe its to an under
cover agent o f the S e c r e t S e rv ic e a t a midtown h o t e l .
Giarusso
was taken near th e home o f Soroka where he was w a itin g fo r the
return of Soroka to make payment fo r the c o u n t e r f e it s .
L a te r the same day Joseph P a te rn e ste r, p ro p ria to r o f a
p r in tin g p la n t in Newark, N. J . , was a rr e ste d by S e cre t S e rv ice
agents as a lle g e d manufacturer o f the c o u n t e r f e i t s .
In h is shop
the Treasury men found the n e g a tiv e fo r a c o u n te r fe it # 2 0 -d o llar
note and a s t r ip o f nine fake sugar coupons.
E a r ly th is morning agen ts took in to custody George A. Larkin
in Newark, a lle g e d to have been a partner o f P a te rn e ste r in the
manufacture o f the bogus money.
In h is room, agents s e iz e d two
thousand sheets o f gray paper which Larkin adm itted he intended
to use in p r in tin g c o u n te r fe it OPA sugar stamps.
He a ls o admitted
^:4
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Sopteabor 10» 1940
to m . m im x.ft
fho following market transactions w«r« and« daring the month
of Aiiaii. 1946 , la direct and gmirantood soeurltlos of th*
Oowornaoat for Troasutyr lmrsstnoat and other accounts*
Saloo ...
$4 1 ,7 5 3 ,TOO
Purchases
6A2.QQQ
%
$41,211,700
(Sgd) Joseph Greenberg
Joseph Greenberg
Assistant Oeaalsaiener of Accounts
6$ to!
Hr. Heffelfinger
Hr. Shaeffer
Hi «8 Sanford
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TREASURY 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
Monday, S e p t e m b e r 16, 1946
Press S e r vice
No. S-79
D u r i n g the m o n t h of A u g u s t 1946,
in d i r e c t a n d g u a r a n t e e d securities
m a r k e t transactions
of the G o v e r n m e n t for
T r e asury i n v e s t m e n t and other accounts r e s ulted in net
sales
of $41,211,700,
S e c r e t a r y Snyder a n n o u n c e d today.
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*■«•■»**
TREASURY DEPARTMENT
Washington
(The f o l l o w i n g address by Joseph J. O ’Connell, Jr.*
General Counsel of the T r e a s u r y Department, at the
"Convention of the State Bar o f California, Coronada.,
California, b e f o r e a panel d i s c u s s i o n on Current
T r e n d s in Taxation, is scheduled for del i v e r y at
"9130 A . M
Pacific Time,-on Saturday, September 28,
1946, and is for release at that time.)
i,
The first year of peace just concluded has w i t n e s s e d the
unwinding of the huge w a r machine that we d e v e loped in the course
of five or six years.
Man y of the controls that were imposed as
a m a tter o f w a r t i m e n e c e s s i t y have already been eliminated.
Other controls have b e e n relaxed, but the needs of the transition
require that t h e y s t i l l - r e m a i n effective for some time to come.
In the f i e l d of taxation we have already taken important steps
away from the w a rtime structure.
W i t h i n less than six months
after the end o f hostilities, the excess-profits tax, one of the
first, of the w a r m e a s u r e s to be enacted b 3r Congress, was removed.
The Revenue A ct of 1945, which, was approved in N o v e m b e r of last
year, also repealed the capital stock tax, an d that wartime
phenomenon, the automobile use tax.
At the same time income
taxes on c o r p o r a t i o n s and individuals were reduced b y substantial
amounts.
It w o u l d be a m i s take to think that the t r a n sition from war
to peace consists m e r e l y of eliminating those m e a s u r e s that were
adopted d u r i n g the war.
We cannot return, at least so far as
the- tax s t r ucture goes, to the years befo r e 1940.
In the first
place, the war, itself, has left us a h e r itage w h i c h wil l be In
evidence for m a n y years to come.
Interest on the g r e a t l y in
creased public debt, essential outlays for na t i o n a l defense,
aids to v e t e r a n s , ’
' and other n e c e s s a r y items of G o v e rnment
expenditure wil l result in an annual budget far above p r e -war
levels, and will require a tax yield m u c h g r e a t e r than that of
the pr e - w a r years#- In the second place, we d e v e l o p e d d u r i n g the
war certain features in our tax s y stem w h i c h are h i g h l y desirable
and should be continued as part of the per m a n e n t structure of
the tax system.
Our system of current individual income tax
payment, Involving the w i t h holding of tax on w^ages and salaries
and q u a r t e r l y estimates and payment of tax on other income, is
one important innovation that should be retained.
S-80
\
2
As we move toward a peace time tax structure we must have
in mind 'short term considerations as well as the long ,range ob
jectives of a desirable tax system. We should, for example,
seek to maintain a tax policy which so far as possible aids in
the control of the inflationary pressures which still endanger
the stability of our economic life. Despite a year of peace,
the demand for goods and. services by consumers and'others is
still far out of proportion- to available supply, with the result
that the upward pressure against prices continues unabated and
in some cases with increased* intensity. The tax system can help
to check these forces by absorbing some excess purchasing power
and thus reducing the, demand for goods, without at the: same time
imposing undue hardships"taxwise. Consequently, even if "for the
long run higher personal exemptions and lower income tax rates
"may be deemed desirable, short run considerations indicate
strongly the wisdom of retaining existing levels of taxation for
the time being.
.
And, entirely apart from inflation, if makes little sense
to attempt to discuss or advocate tax reductions except in the
light of the existing budgetary situation and the Government’s
heeds for revenue to meet its requirements. . As you probably
know, the Administration is bending its. every effort in the di
rection of reducing expenditures without at the same time un
duly hampering essential operations - not the least of which,
in these troubled times,'involves an unprecedented level of
peace-time expenditures for national security and defense. The
present outlook from a budget- point of view, ,as pointed out by
the President in his report to the country early in August of
this year, is for a budget out of balance by not more than
$2,000,000,000 in fiscal 1947. In fact, even for 1947 the out
look is that on a strictly cash basis the Treasury:intake will
be nearly $3*000,000,000 in excess of expenditures. In 1948,
in the President’s own words, it is his purpose “’’not only to
balance the budget but to manage the fiscal program of the
Government so that a substantial surplus may be used .in the
reduction of the national debt.” • The desirability of such a
course is beyond dispute.' To maintain it in .
‘the face of sub
stantial tax reductions would seem highly improbable, unless we
assume an immediate curtailment of expenditures in the major
categories! have mentioned beyond the extent to which such re
ductions would be either possible' or discreet under present
circumstances.
V
The longer run objectives of ourjtax policy must include
strengthening of the forces making for a high level of national
income and employment. The tax system must be shaped so as to
avoid a repressive effect on the demand of consumers for goods
and services and to stimulate investment in productive enter
prise which will employ labor, materials, and equipment. Unless
we attain this objective, the postwar period may mark a return
to the instability, mass unemployment and depression of the
early thirties.
- v 34 4.
-tr d i s c u s s i n g some p a r t i c u l a r features of* t h e 'tux s y stem
with which.-much. c u r rent thinking' is concerned, I w a n t to mate
clear that .I ..up,,not fore c a s t i n g the c o u r s e - o f ' p r o b a b l e p o s t w a r
tax-revision, nor. a m I p r e pared at present to state f o r myself
or the Treasury. h ow these issues Should u l t i m a t e l y B e . resolved.
,
p r i n c i p a l objective is to-stimulate further discussion of
these problems.
It is p e r t i n e n t to note that the e s s e ntial
elements of m a n y of the problems to be discussed have been w i t h
us for m a n y years.
But t h e 'war legacy cf high rates has made
them more urgent.
The stakes- are larger and the debate m o r e 1
heated. .
The taxation ,of corporate profits has been t he subject
of w i d e s p r e a d debate in the last year or two, w i t h p a r t i c u l a r
emphasis upo n the s o - c a l l e d "double taxation" of c.oroorate
income.
Inco m e r e c e i v e d by a corporation is first, -subject to
tax at the c o r p orate level, and then-such remaining profits as
are d i s t r i b u t e d to s t o c k holders are again subject to tax u n d e r
'the p e r s o n a l I n c o m e tax.
This is the f i rst step in the a n a l y
sis and. u p to this p o i n t there is general agreement.
But
whether this :actually, constitutes double, taxation is no t quite
so clear.
If a c o r p oration passes on the'income t ax to. its
c u s t o m e r s .in the .form of h i g h e r prices or recoups it t h r o u g h
lower wages to its employees, there is of course no double
taxation.
The c o r p o r a t i o n ’s profits a f ter t a x are the same as
they,would have been if there were no corporation income tax,
and the a m o u n t a v a i l a b l e for distribution bo stockholders is
also unchanged.
Unfortunately, however, there is no convincing
evidence w h i c h serves c l early to s ubstantiate or to contravene,
one or the other hypothesis.
Even among businessmen themselves,
we find differences of opinion implicit in'their various views
as to the i m pact of corporate taxes.
The a r g u m e n t t h a t stockholders;1 dividends are t a xed more
heavily than o t her forms of, income b y reason of the corporate
tax is only one a s p e c t of the problem. - I t considers only
profits d i s t r i b u t e d by a corporation.
However, a large p r o p o r
tion of corporate profits earned each year are not d i s t r i b u t e d
to stockholders,. : This s i t u ation has been a g g r a v a t e d by the
combination^ of the h igh earnings a n d business u n c e r t a i n t i e s of
the war period.
S uch r e t a i n e d income f r e q u e n t l y has a tax a d
vantage c o m p a r e d .with the r e t u r n on other forms ;;of investment .
s u b j e c t o n l y to;,'the corporation income tax, at a rate
'- ì c ■ m ay be s u b s t a n t i a l l y lower, than the. .personal income t a x
rate to w h i c h at l e a s t ' t h e ma jor stockholders are sub ject,
moreover, t h e ret e n t i o n o f profits; in a corp o r a t i o n f r e q u e n t l y
involves more t h a n - m e r e l y postponing the i n d i v i d u a l income t a x
°P such, profits:,;. B e c a u s e of othqr.' elements, in the t ax:-system,
such profits m a y u l t i m a t e l y e s c a p ’
e p e r s o n a l income t a x altogetner, or at least r e c e i v e the benefit of the l i m ited rate a p
plicable to capital gaina.
Prevailing attitudes toward revision of the corporation
income tax differ widely among different groups. Some would
make no change at all in the present sfrueture, ;.contending
either that a corporation has ail identity .and.taxpaying capa
city that is separate apd distinct frgm;i'tsnstockholders; or
that the corporation.income tax adds a desirable element of
progression to the tax structure. Others-would eliminate the
•corporation income tax entirely, ignoring-both the windfall
profits which would thereby accrue to the-owners of outstand
ing corporate securities and the added incentive toward the accumulation of untaxed profits in the corporation.Between these two approaches are a number of others. The
partnership method of taxing corporations is one. Under this
proposal, there would be allocated to each stockholder his pro
portionate share of the corporation’s profits for the year,
whether or not distributed to'him. He Would include'such share
of.the profits in his income and pay personal income tax on it.
A major difficulty many find with the partnership-method is
that the taxpayer may not have the funds With'which to pay the
tax on that.part of the corporation’s profits, which have not
been actually distributed. Great pressure would be exerted by
the stockholders upon the management of a corporation to distri
bute profits, and .to an increased degree, the expansion of an
enterprise would have to be financed from sources other than
retained profits.. I am not suggesting that these results would
necessarily be undesirable, but am only pointing out that they
would-inevitably follow from the partnership approach. In any
event, if there is a field for partnership treatment it may be
found to be, limited to relatively small or. closely, held concerns
Even as so limited, the proposal raises difficult technical
problems.
In some quarters the system used in Great Britain for tax
ing corporate profits has found appeal. The tax paid by the
Corporation is considered to have been paid on behalf of the -'- ,
stockholders, just as in this country the tax- on twages and
salaries.withheld by an employer Is considered paid on behalf
of'the employee. The British stockholder in computing his tax
liability includes in his income .not only the pet amount of
the dividend distributed to him-but-also the' tax vpaid on his. / ;,
behalf, by the corporation.: Thus, with a corporation tax; rate •
of 50 per cent, the British stockholder reports- two do liars,
in, his personal incomer, tax return for' each dollar of dividends
that, he receives. ■He1then receives p h a' ’credit"against, his
personal tax liability--the amount '"'of tax paid:by the corporation.
5
A n o t h e r pr o p o s a l w h i c h would also operate at the s t o c k h o l d e r
level is the sug g e s t i o n that dividends be p a r t i a l l y exempt f r o m
che personal income t ax to compensate the s tockholder f o r t h e c o r
porate, tax.
This plan is often combined wit h the idea t h a t the
corporation tax rate s h ould be the same as the normal, tax rate
u n uer the i n d i vidual income tax, and. dividends w o u l d be exempt
m o m the n o rmal tax.'
This latter suggestion contemplates, of
course, a s u b s t a n t i a l increase in the normal tax rate f r o m its
present 3 p e r cent.
This plan has a p r ior h i s tory in our federal
lax system.
T h e main weakness of this plan is that it w o u l d give
a special t a x a d v a n t a g e to stockholders where corporations are
able to s h i f t the increase of the corporate tax.
In c o n t r a s t to these methods of a w a r d i n g a c r e d i t or e x e m p
tion at t h e s t o c k h o l d e r level, is the fam i l i a r p r o posal to a l l o w
a c orporation to ' d e d u c t f rom ne t income part or all of- the d i v i
dends d i s t r i b u t e d to its stockholders.
If it d istributed all of
its* profits* there w o u l d foe no corporation tax or it w o uld be at
a minimum.
Y ou w ill r e c a l l that s uch a plan was in the law some
years.ago, not a s _a substitute f o r the corporation income tax
but a u x i l i a r y to it, in the for m of the shor t - l i v e d and. m u c h
criticized u n d i s t r i b u t e d profits tax.
P o s s i b l y some of t h ose n o w
endorsing a corporate deduction f o r dividends as a method, of
eliminating double t a x ation w o uld be glad to forget their a r g u
ments ag a i n s t t h e u n d i s t r i b u t e d profits tax.
This brief r e v i e w of proposals w i t h r e s p e c t to the c o r p o
ration income tax indicates the wide diversity of opinion on the
problem.
A l t h o u g h some' of the plans have d o u b t l e s s ” been suggested
and are being s u p p o r t e d by those wit h par t i c u l a r axes to grind,
for the most p art they rep r e s e n t sincerely held, a l t h o u g h d i v e r
gent, „convictions as to w h i c h of various possible devices would
contribute m o s t to a smooth and stable -economy.
The- p r o b l e m is
one w h i c h deserves a nd is receiving our careful attention.
The d e v e l o p m e n t of small business has become a m a t t e r of
wide and i n c r e a s i n g interest in' recent years.
The needs of
veterans, who have shown a strong p r e f e r e n c e to e s t ablish t h e i r
own business, and t h e fact that large i n d u stries have a c q u i r e d
disprop o r t i o n a t e size and strength as a r e s u l t of the war, c o m
bine to giv e a d d e d importance to t he problems of small business.
As P r e s i d e n t T r u m a n has saidi UA rising birth rate for small
business an d a f a v o r a b l e environment for its growth, are n o t .
only economic n e c e s s i t i e s but also important p r a c t i c a l d e m o n s t r a
tions of o p p o r t u n i t y in a democratic free s o c i e t y . ”
6
S u g g e s t i o n s to s t i m u l a t e s m all b u s iness have been very
numerous in the ta x f i e l d a n d elsewhere.
To some extent, the
s u g g e s t i o n s made on behalf of s m a l l business are the same as
those m a d e for business g e n e r a l l y , for example, the elimination
of double taxat i o n of dividends, a n d m o r e f a v o r a b l e treatment
of capital gains and losses.
Thi s i d e n t i t y of t a x p r o p o s a l s is p a r t l y a r e f l e c t i o n of
one m a j o r d i f f i c u l t y in d e v e l o p i n g sp e c i a l schemes to p r o mote
small business.
It is a l m o s t imp o s s i b l e to define s m all b u s i
ness in ge n e r a l terms a n d in s u c h a w a y as to a p p l y to a 13types of enterprise.
R e g a r d l e s s of w h e t h e r the def i n i t i o n be
couched in terms of asset, size, n u m b e r of employees, n e t worth,
profits, or sales, a f i r m tha t by virt u e of the d e f i n i t i o n would
be c o n s i d e r e d small in one ty p e - o f i n d u s t r y w o u l d be considered
large in another.
A m a n u f a c t u r i n g fir m w i t h 50 employees might
be a s m a l l e n t e rprise but a w h o l e s a l e d i s t r i b u t o r w i t h t h e same
n u m b e r of employees might b e . b i g b u s iness in its field.
Simil a rly u n r e l i a b l e a re crite r i a b a sed u p o n sales or n et worth.
A n d as to income as a criterion, even the b i g g e s t enterprises
ma y operate at a s m all p r o f i t or even at a loss f o r a time.
In eva l u a t i n g various p r o p o s a l s f o r a s s i s t i n g s m all b u s i
ness, there m u s t be r e a s o n a b l e a s s u r a n c e than a p a r t i c u l a r
s c h e m e '"will a c c o m p l i s h the o b j e c t i v e that we seek.
We m u s t be
certain t h a t the a d v a n t a g e given one type of s m all business is
not at the expense of o t h e r types.
S m all business includes
corporations, sole p r o p r i e t o r s h i p s a n d partnerships, a nd t h e y
must all be given a lif t together.
One of the. most c o n t r o v e r s i a l a s p ects of p o s t w a r tax
rev i s i o n is l i k e l y to be the issue of t ax rates a n d exemptions.
rep r e s e n t t he cle a r e s t element to a n y t a x p a y e r in t h e d e
t e r m i n a t i o n of his t a x liability, a n d consequently, the g r e a t
est interest seems to lie in this area.
A n d yet, because of
the i n f l a t i o n a r y s i t u a t i o n and the n e e d f o r r e v e n u e to finance
the still high level of expenditures, the o p p o r t u n i t i e s f o r
r e d u c t i o n in rates a n d fo r increases in exemptions s eem limited.
In a r r i v i n g at the l e vel of exemptions a nd rates m a n y influences
w i l l have to be t a k e n into a c c o u n t and c o n f l i c t i n g f a c tors r e
solved.
The revenue goa l is of course a p r i m e consideration,
and the y i e l d of the p e r s o n a l income tax is the m o s t important
d e t e rminant of the o v e r - a l l t a x yield.
Thej'
On the qu e s t i o n of exemptions, some p e ople w i l l u r g e that
the l e vel s h o u l d be b a s e d on a m i n i m u m living standard.
What
t h a t s t a n d a r d shou l d be is itself like l y to be h i g h l y c o n t r o v e r
sial, - C o n s i d e r i n g the d i f f erences in wages a n d price levels in
d i f f erent regions of t h e country, as w e l l as u r b a n a n d r u r a l
differences, t he t r a n s l a t i o n of s u c h a s t a n d a r d into a u n i f o r m
dollar exemption w o u l d be ext r e m e l y difficult.
To add to the
7
.complexity-, the s t a n d a r d would have to. be a'djusted for f a m i l y
units of .différant size. p o t h e r factors. to "be c o n s i d e r e d in
setting the .exemptions, are the effect on t he v o lume of co n s u m e r
expenditures a n d economic stability, a nd .since the exemptions
, apply ;to al l taxpayers,, their effect.on the r e l a t i v e d i s t r i b u t i o n
Of b u r d e n s ^ Finally, t h e . a d m i n i s t r a t i v e aspects, p a r t i c u l a r l y
the m a i n t e n a n c e of the 'greatly i n c r e a s e d ,s i m p l i c i t y a c h i e v e d in
recent years, must, receive careful consideration.
On e a c h of
these pofrptÉ^ w-e m a y expect some differences of opinion. !
O n t he q u e stion of rates, there .will be pre s s u r e s for a
red u c t i o n on the l o w i n c o m e groups in of.der to ma i n t a i n c o n sumer
p u r c h a s i n g power.
There will, likewise, be pressures f o r a r e d u c
tion on the h i g h e r i n c o m e groups t*p .increase their ince n t i v e s to
invest in r i s k enterpris.es • R e s t o r a t i o n of an earned income
credit or other proposals f o r s p e c i a l t r e a t m e n t in the field of
earned income m ay also ‘come to .the fore as devices to improve
equity, and. to, s t i m ulate f u r t h e r pe r s o n a l effort by executives
in- expanding t h e i r a c t i v i t i e s a n d u n d e r t a k i n g n e w ventures.
-,
In opp o s i t i o n to a n y s u b s t a n t i a l r e d u c t i o n s in the. b u r d e n
of the p e r s o n a l income t a x a re t h o s e who would mak e it by' far
the m a j o r s o u r c e of. revenue in the F e d e r a l t a x system, g r e a t l y
reducing the significance, if not c o m p l e t e l y eliminating,, other
F e deral taxes.'
If our p o s t w a r r e v e n u e needs are to be met,
this w o u l d mea n r e t e n t i o n of t h e . b r o a d base, that is, low e x e m p
tions, a n d ' r e l a t i v e l y h i g h rates. i n ;.-lowest tax brackets.
/
he have on occasion r e c o g n i z e d ‘tha t the convention of a
one-year accounting, p e r i o d is n o t ah e n t irely r a t i o n a l one f o r
some .purposes, a n d t h a t some p f h e r . p e r i o d s h o u l d on occasion be
s u b s t i t u t e d f o r it.
For,, example, in. t h e case of o r d i n a r y b u s i
ness operations, the' net result. ,of o p e r a t i o n s f o r a s i n g l e y ear
has been- c o n s i d e r e d an inadequaf.fi m e a s u r e of taxpaj^ing’capacity.
Consequently, there is the f i v e - y e a r loss o f f s e t provision,
.Under w h i c h business losses', of c o r p o r a t i o n s are c a r ried b a c k for
twp.years a n d ca r r i e d f o r w a r d for the' s a m e p e r i o d to be. offs e t
against the profits of t h ose years.
Thi's p r o v i s i o n a p p e a r s
likely to be r e t a i n e d in the p o s t - w a r s y s t e m in the f o r m of a
longer c a r r y f o r w a r d of losses a n d w i t h o u t t h e ..c a r r y b a c k feature.
n
. The. a v e r a g i n g of business losses w i t h business .'income is
only part, of t h e g e n e r a l problem.. F l u c t u a t i n g .income- r e p r e s e n t s
a n o t h e r part.
B e c ause of, t h e p r o g r e s s i v e rate- :s t r u c t u r e ~ u n d e r
the i n d i v i d u a l income tax''and fo r . s m a l l ' c o r p o r a t i o n s , the t a x e s
over a p e r i o d of years on a given a m o u n t of t o t a l income are
likely to be g r e a t e r if that income is spre a d u n e v e n l y than if
it is r e c e i v e d in r e l a t i v e l y equal amounts each year. To a small
/
8
extent and in a limited area, e x i s t i n g law takes account of
this d ifficulty.
H a v i n g a d i r e c t interest in it, yo u are
p r o b a b l y aware that lawyers, among others, m a y choose to a v e r
age the' income r e c e i v e d in a g i ven y e a r if'it is the p r o duct
of effort e x p a n d e d o v e r a p e r i o d o f three years or more. The
"bunching" o f income is perhaps m o s t striking in the case of
actors, authors, a n d o t h e r p r o f e ssionals, b u t it also occurs
in the case of b u s i n e s s m e n , workers, and others.
A n d so, it
has b e e n suggested that the area in w h i c h the a v e r a g i n g p r i n
ciple is applied be e x p a n d e d to include other sources of
income besides ce r t a i n p r o f e s s i o n a l earnings.
A more rest r i c t e d a p p l i c a t i o n o f the a v e r a g i n g pri n c i p l e
is the suggestion that taxpayers be al l o w e d to c a r r y - o v e r u n
used p e r s o n a l e xemptions.
This p l a n w o uld be of a s s i s t a n c e to
those who mov e f r o m one year to the nex t b e t w e e n a taxable and
n o n - t a x a b l e status.
In computing h i s tax l i a b i l i t y for a^given
year, a taxpayer would add to his currant personal exemptions
that part o f h i s p e r s o n a l exemptions for some other y ear w h i ch
was of no tax benefit to h i m b e c a u s e his income was not h i g h
enough.
The" pra c t i c a l appl i c a t i o n o f such a proposal must
take into account, among other diffi c u l t i e s , that the statutory
personal exemptions m a y change from; year' to year, that the
n u m b e r of d e p e n d e n t s may change f r o m one y e a r to another, and
that for some years the t a x p a y e r m a y n o t hav e filed an income
tax return b e c a u s e of his n o n - t a x a b l e status.
In d e v e l o p i n g these a v e r a g i n g p l a n s one logical d i f f i c u l t y
that, m ust be faced is the peri o d of time over w h i c h t he a v e r a g
ing should take place.
What logic justifies a c a r r y - f o r w a r d of
b u s i n e s s losses o f two years r a t h e r than one year or three
year s ?
I f pe r s o n a l income is to be averaged w hat p e r i o d should
we choose?
Should we take our cue from the social s e c urity
p r o g r a m and a d o p t an av e r a g e o v e r the period of the t a x p a y e r ’s
w o r k i n g life?
And what shall it be in the case of a corporation
that endures for m a n y g e n e r a t i o n s ?
T he a n s w e r is p r o b a b l y that
conclusions b a s e d on a neat s y s t e m o f logic must be tempered
by
practical c o nsiderations.
N e i t h e r the tax p a y e r nor the G o v e r n
ment would be h a p p y u n d e r a s y s t e m w h e r e tax l i a b i l i t y always
remains open to revision.
A v e r a g i n g devices, it is clear, tend to c o m p l i c a t e the
income tax.
B ut if t h e y ca n make a subs t a n t i a l c o n t r i b u t i o n
to inc r e a s e d equity among t a x p ayers and if the y can serve to
stimulate increased I n v e s t m e n t in r i s k enterprises, the in
creased c o m p l e x i t y m a y w e l l be w o r t h the price.
9
Under a. p r o g r e s s i v e income tax such.as ours, there is a
keen ^incentive for m e m b e r s of a;¿family unit to arrange their
a ifaif s s o .,‘
t hat, ior tax purposes, e a c h member,'of the group
.will have a s ^ n e a r l y as possible ran. equal- share of the total
income.
W i t h certain minor a nd-technical .limitations,- the
more equal the d i s t r i b u t i o n b e t w e e n the m e m b e r s o f the family,
.th!v,1^ SSv.the i ax 0n the sSgregate income of all.
Various
methods have b e e n seized u p o n or invented to.achieve the d e
sired end.
Some have b e e n c r o wned wit h success, others have
^rove^fhtile^
success;i*u l ’ w h i l e
still others have u l t i m a t e l y
• k a r k a P s n °t unnaturally, the largest area in w h i c h income
s p l i t t i n g :has succeeded has been where the e s t a b l i s h e d state
system of p r o p e r t y law has lent itself to the task.
In the i n
come tax field, the community p r o p e r t y concept has thus far
m a i n t a i n e d intact Its vitality as a m e t h o d of income splitting
the
« H X QPi r P ° SeSi:.
attacks ^ ada u pon the v e r y c o n s i derable
tax a d v a n t a g e s w h i c h flow from a d i v i s i o n of p r o p e r t y and inbppn ^ i r f e n ch ^ S]:)and a!ld w i f e in community pro p e r t y states have
been s u c c e s s f u l l y repulsed w h e r e v e r they h a v e a p p e a r e d . i n the
income tax field, at the cost only of surre n d e r i n g to a legislatiye onslaught on the estate, tax citadel. The importance and
n. inup^ s anding of the c o m munity p r o p e r t y s y s t e m incomer
taxwise is e v i d e n c e d by the fact that w i t h i n the past few years
a staoe w i t h an E n g l i s h common law. h e r i t a g e has a d o p t e d c o m m u
nity p r o p e r t y laws whose origin -in this country o f course goes
back to^the e a r l y Spanish settlements.
The success' at t a i n e d
in forcing tax reco g n i t i o n of this n e w state law has g i v e n to
ax a v o i d a n c e - b y - s t a t u t e a far more successful record than has
oeen enjoyed by tax avoidance t h r o u g h more li m i t e d and i n d i v i d
ual devices.
In non-community, p r o perty s t a t e s ,:..the d i v i s i o n of income
b e t ween m e m b e r s of the family, ha s - b e e n a t t e m p t e d through-a
variety o f p r o p e r t y l a w . devices - the e s t a b l i s h m e n t of family
trusts,- a s s i g n m e n t s of i n c o m e , .gifts.:, of income p r o d u c i n g p r o p
erty f r o m one spouse to another, and the setting up of f a mily
partnerships.
Thus far all efforts to d i v i d e the flow ofearned i n come for tax purposes have evoked only a -judicial
irown of d i s a p p r o v a l , Efforts to split income from, bu s i n e s s
or investments have met wit h a ' l a r g e r m e a s u r e of success. -•
Even in this latt e r area, however, court d e c i s i o n s in.the past
lew years have e l i m i n a t e d m u c h of the former sa n c t i t y that
w s s _ thought to surround the f a m i l y trust. "More recently, these
decisions h a v e .wri tten .a virtual f i n i s h to. the t riumphant .
course of t a x - i n s p i r e d family p a rtnerships.
.
10
The outcome of all this has not bee n satisfactory. Endless
time a n d e n e r g y have b e e n p o u r e d into, the creation, of various
d e v i c e s 1and their subs e q u e n t d e f e n s e b e f o r e the courts.
The
costly ’
"èq d wasteful liti g a t i o n thus p r o m o t e d is h a r d l y compatible
w i t h t h e ' s a t i s f a c t o r y o p e r ation qf .an important revenue system.
M o r e o v e r and perhaps m o r e important, is- t h e .tax,'Inequity w h i c h
h as ensued',
.There is n o t . o n l y d i s c r i m i n a t i o n b e t w e e n families
in community, p r o p e r t y states a n d t h o s e •of -s i m i l a r circumstances
in other state.s, but- there is ‘also the p o s s i b i l i t y of more
favorable t r e a t m e n t of income f rom p r o p e r t y and investments
than that of w a g e earners and p r o f e s s i o n a l groups.
Several u n s u c c e s s f u l legi s l a t i v e attempts have b e e n m ade
to e s t a b l i s h g-reater tax equity b e t w e e n the common law. and.-the
c o m m unity p r o p e r t y legal systems.
At one time it was proposed,
to-have m a n d a t o r y joint returns for h u s b a n d s and' w i v e s .
At
another, it was, p r o p o s e d as an alternative, to tax c o m m unity
income to the spouse h a v i n g the m a n a g e m e n t and control of it..
The criticisms a i med at these plans ranged f r o m arguments
that -the code of f a m i l y m o r a l s was imperiled t o the c l a i m that
the hard-gained, rights of w o men were b e i n g lost.
•More r e c e n t l y a t t e n t i o n has b e e n focused u p o n an a l t e r
native solution w h i c h w o u l d see m to o f fer more promise of
success than those a d v a n c e d b e f o r e . This p r o posal w o uld
allow m a r r i e d couples in all states .to d i v i d e their income for
tax purposes.
Thp total tax w o u l d be twice the amount o f the
tax on o n e - h a l f of the a g g r e g a t e income of both-'husband and
wife, irres p e c t i v e of the Source o f the incomer, and the tax
w o uld be p r o p o r t i o n e d b e t w e e n the. spouses e i t h e r according- to
their respective incomes or in w h a t e v e r f a s h i o n suited them.
This ■proposal h as u n d o u b t e d attractions.
One, p a r t i c u l a r m e r i t
of the plan -is that its ad o p t i o n w o uld n o t swing the b a lance
of tax e q u i t y .to .the poin t whe-re the c o m m u n i t y p r o p e r t y states,
m i g h t well c l a i m d i s c r i m i n a t i o n in ,some respects, w h i c h has
b e e n a defect of s o m e ;of A the' other, proposals , A n o t h e r a t t r a c
tive feature isy that the proposal' w o u l d tend tò eliminate .many
o f the" inequities tha t ha ve a r i s e n w i t h i n .th e :common ‘1 aw. states,
p a r t i c u l a r l y as b e t w e e n e a rned income and inv e s t m e n t ^ i n c o m e .
The proposal does, however, pre.sent s'Ome difficulties,
a l t h o u g h they would not .a p p e a r to be insurmountable,.
In the .
first place,' it w o u l d result In a c o m p a r a t i v e increase in
the w e i g h t o f .the; tax b u r d e n u p o n single persons unless s e p a
rate rate schedules for individuals and m a r r i e d couples were-used.
This a s p e ct ,©f the p r o b l e m c e r t a i n l y requires the
fullest consideration, a l t h o u g h I have not heard, it said here
in C alifornia or in n e i g h b o r i n g c o m m u n i t y p r o p e r t y states
that the single pers o n is one o f the d i s a p p e a r i n g species in
the struggle for tax survival.
11
A n o t h e r d i f f i c u l t y arises from ther fact- that the: benefits
from.: t b m resultant, tax r e d u ction w o u l d be c o n f i n e d tb1 persons
„above th
first income tax bracket. . Again, I f the fullest adva n t a g e - i p .preventing tax losses from the d i v i s i o n of income
within ^the f a m i l y g r o u p is to be g a i n e d from the plan, some
provision will n e e d to be made to b r i n g minor ch i l d r e n w i t h i n
its scope, p o s s i b l y b y treating t h e i r income as that of the
1m ® st t0
extent that it is d e r i v e d from p a r e n
tal gifts.
These and the m a n y incidental technical problems
are b e i n g c a r e f u l l y studied,
'•
^he tra n s f e r of p r o p e r t y at d e a t h or by gift play
a r e l a t i v e l y minor role in our tax system.
B e c a u s e o f the ^
rather h i g h exemption, the estate tax applies onl y to one out
of e v er y 100 adult, deaths in this country..
The. impact of the
gift tax p r o b a b l y is felt in even fewer cases.,
level of
exemptions and various structural defects results in a combined
estate and gift tax yield that is m u c h less t h a n : the y i e l d o f
the. tax on cigarettes alone.
'¿he
The fact th®t r e l a t i v e l y few persons are af f e c t e d by these
taxes m a y account i m p a r t for the rather m e a g e r p o p u l a r attenfn!n QW h l C h t h ?y r e c e i v e * In a sense this is a curious anomaly,
for an e x p a n s i o n - o f this source o f revenue would leave more
"
room for c ontraction elsewhere.
On the o t h e r hand, these taxes
may
e r e g a r d e d more as instruments to retard the g r o w t h of
uge ...ereditary fortunes than as sources of revenue and instrus ° ’ P l s ?a?- policy.
The d e v e l o p m e n t of a comprehensive' and
d e q u a t e ^ s o c i a l s e c u r i t y p r o gram m a y u l t i m a t e l y have some effect
in a l t e r i n g the role of these taxes in the Federal - scheme of
taxation.:
A l t h o u g h the gift tax was intended to. c omplement and r e
inforce the estate tax,.as well as the income tax, it has to a
a^ ^ e extent failed at this t,ask* . By a judicious t r a n s f e r of
property d u r i n g ' l i f e and at death, the total estate and gift
tax can be reduced to a small fraction of the estate tax on the
total amount o f p r o p e r t y transferred, and in a d d i t i o n there m a y
De substantial income tax savings. .To correct this d i f f i c u l t y
the suggestion has b e e n made to integrate the estate and gift
taxes so that they would in effect c o n s t i t u t e a single tax
each gift during life b e i n g considered as part of the estate.
o^rsr»in °!:l?e r 4.iTnp0rtant d e f e c t w h i c h invites comment is the
p p o r t u n i t y to postpone the occurrence of a t a x a b l e transfer.
r L e ? P 0 S ^ ? ‘!l for an indivl-dual to e s t a b l i s h a trust o r sucf r m T ^ c 0?
estatea under such terms that his descendants,
esob w
* U v i n g ^ s o n to his yet u n b o r n g r e a t - g r a n d c h i l d , can
fer
e n j 0 ? the p r o p e r t y a l t h o u g h o n l y a single transpurp f th
p r ° P erty is r e c o gnized for estate a nd gift tax
12
Finally, there is the strange a n o m a l y w h ere a transfer of
p r o p e r t y is r e c o g n i z e d as a gif t for p u r poses of the gift tax
but is n o t so con s i d e r e d for p u r poses of'the income tax, the *
donor of t h e 'p r o p e r t y c o n t i n u i n g to be liable for tax on the
income w h i c h flows f r o m the property,
It is o b v ious f r o m these il l u s t r a t i o n s that the r e l a t i o n
ships among the estate tax, the gift tax,' and the income tax
are b a d l y in need of o v e r h a u l i n g .
v '
•
*
:f
E x c i s e taxes p l ayed an important part duri n g the w a r first, by y i e lding large sums o f revenue, and second, by t e n d
ing to discourage c onsumption of scarce commodities.
It seems
l i v e l y that the excises wrill come in for careful scrutiny in
the d e v e l o p m e n t of the peacetime tax structure.
Manufacturers
and d i s t r i b u t o r s -will of course seek the repeal or reduction
o f e x c i s e s . o n s p e c i f i c c ommodities in w h i c h t h e y deal in order
to increase their sales.
but in a general revision of excise
taxes, changes wil l have to be made w i t h due regard for
revenue n e e d s ano the relative i m p o rtance of various taxed
c o m m o d i t i e s to the m a i n t e n a n c e o f ;a prosperous economy,.
-t is r e a s onable to suppose that our p o s t w a r tax structure
will differ in m a n y r e s p e c t s f r o m our p r e - w a r structure.
In
part,, some of the changes will' be a r e f l e c t i o n of attitudes that
pre v a i l e d long before the war, and c o n tinue into the p o stwar
period.
In^part, however, the changes are l i k e l y to reflect a
n e w c o n c eption o f the r o l e w h i c h taxes should pla y in the
economy. ^There is a g r o w i n g b o d y of opinion that* tax p o l i c y can
exert an important influence in r e g u l a t i n g f l u c t u a t i o n s in the
volume of b u s i n e s s an<J. employment, in c o n t r o l l i n g b o o m s and d e
pressions, and in b u i l d i n g a w o r l d of s t a b i l i t y and plenty.
, it is ess e n t i a l that we should approach
• f
cS y:
P o s "^war> r e v i s i o n not as p r o t a g o n i s t s of n a r r o w group
n erests, b u t as d e f e n d e r s o f the n a t i o n 1s interest as a whole.
60o
T B S A S m WœSfflK
Washington
tm WBMâSÊp
S *
Vf
Fr&ma Service
MOHKIÜG ICT&PAMÈS,
Tuesday* September 17» 191*6«
The Secretary of tbe treasury announced last evening that the tenders tea?
$1,300,000,000, or thereabouts, of 91-day Treasury bills to be dated September 19 and to
mature December 19, 191*6, which were offered on September 13, 191*6# were opened at the
Federal Reserve Banks on September 16.
The details of this issue are as follows t
Total applied for - $1,777,250,000
Total accepted
— 1,30$*,827,000
Average price
(includes $31**61*0,000 entered on a fixed—pries
basis at 99*90$ and accepted in full)
- 99.905/ Equivalent rate of discount approx« 0*375# per annum
Range of accepted competitive bids:
High
- 99.90? Equivalent rate of discount approx.
- 99*905
*
• .«
«
»
of the amount
annum
«
at the low price
12 ,560,000
393,005,000
33,1*70,000
000
$,665,ooo
8.978.000
6*5,000
000
507,000
,180,000
2.895.000
10 ,0 7 0 ,0 0 0
11 ,8 7 0 ,0 0 0
21.tiQg.000
KBit
$1,777,250,000
000
TREASURY DEPARTMENT
Washington
FOR RELEASE, M O R N I N G N E W S P A P E R S
Tuesday, Se p t e m b e r 17. 19 4 §
" *
Press Service
No, S-81
that the t
e
n
d
e
r
s
12 St e v e n l n S
Treasury bills to be rtaten°i2°2'0? 0 ' ? r h e r e a b o u t s , of 91-d a y
19, 1946 w h i c h were offered oneSepteibe?n i3t01946Ure D ® Cember
opened at the Federal Reserve B a n k s on S e p t e t t e ? 1 6 .
6
The
details
Total applied f o r
Total a c c epted
Average price
of this
issue
are as f o l l o w s :
11,777,250,000
1,304,827,000
(includes #,34,640,
enterec
on a fixed-price basis at
0 9 -9 0 *5/ R r m W
Equiv.
Range of a c c e p t e d
" ; 9 0 5 / nd a c c e p t e d in full
rate of di s c o u n t approx.
0 .375$ per a n n u m
competitive bid
High
How
- 99*905
9 9 . 9 0 5 E q n i v ’ r ® te °£ discount approx. 0 . 3 6 8 ^ pe r a n n u m
0,376^
(71 p e r c e n t of the amount bid ^or at thp i
u ,or at the low price w a s
Federal Reserve
D i s trict
Boston
New Y o r k
Philadelphia
Cleveland
Hi chmond
A tlantAa
Chicago
St. L o u i s
Minneapolis
Fansas C i t y
Total
A p p lied for
>.
12,5 60 ,0 0 0
1 ,3 9 3 ,0 0 5 ,0 0 0
3 3 .4 70 .0 0 0
5 .6 6 5 .0 0 0
8 .9 7 8 .0 0 0
4 .6 4 5 .0 0 0
2 59,507,000
1 3 .130.000
2 .895.000
10.0 70 .0 0 0
11.8 70 .0 0 0
21.4 05 .0 0 0
Dallas
San F r a ncisco
TOTA]
¡1 ,777,250,000
oOo
accepted
Total
__A c c e p t e d
ï
9 ,2 8 3 ,0 0 0
1 ,0 0 7 ,2 4 7 ,0 0 0
2 5 ,582,000
5 .6 6 5 .0 0 0
8 .5 4 3 .0 0 0
4 .6 4 5 .0 0 0
191,25 7 ,0 0 0
9.845.000
2 .8 9 5 .0 0 0
9 .2 0 0 .0 0 0
1 1 .2 90 .0 0 0
1 9 .3 7 5 .0 0 0
^ 1 ,3 0 4 ,8 2 7 ,0 0 0
- 14 that a dictatorship is like a battleship — beautiful in
motion, irresistible when under way, but*a single hidden rock
may send her to the bottom; while Democracy is a raft — al
ways in trouble, your feet are always wet, but nothing, thank
God, can sink her.
Notwithstanding the intimate relationship of international
affairs to our domestic economy, I have not attempted to explore
this field.
To me, there are certain eternal and universal
principles in the relations of man with man and nation with
nation that should never be forgotten.
These principles were
not created by constitutions and world charters.
They inhere
in free government itself,, for human freedom is impossible
without them.
than this:
Among these rights there is none more fundamental
"No citizen shall be deprived of his life, liberty
or property except by the judgment of the law and after trial
before an independent and impartial tribunal."
To me, this
represents the Ark of the Covenant of our national and inter
national salvation.
o Ov
-u«r.
- 13 I am not a pessimist on the future of this nation.
I
believe in the capacity of the American people to solve every
problem that duty brings before them.
In every great hour of
crisis, the people-of this country have met the test.
When
the chips are down, we always find sons of strength to respond
to this nation1s need.
Ours is a nation built on the doctrine
that nothing is more precious than human freedom.
I agree with
Benjamin Franklin that those who give up essential liberty in
order to secure a little safety deserv^neither liberty nor
safety.
I know what our critics say about us, but we do not pretend
that America has a perfect system of government.
Nobody knows
better than our people how inefficient and reckless we sometimes
became.
But these signs are superficial and not fundamental.
You and I know that the heart of this nation is sound.
Its
intentions and instincts are in the right direction and are
honest and wholesome.
It is the real character of a people,
not the occasional slips and falls, that ultimately determines
the fate of a nation and the terminal of the road upon which
they travel.
In some way, somehow, in God’s divine economy, our country
falls within the marvelous simile of Fisher Ames whei he said
-
12
-
C
It acted as a medium — almost as *a perfect conductor —
4
transmitting crises from country to country.
for
Congress, by the monumental legislation of 1933 and 1934,
culminating in the Gold Reserve Act, changed the entire charae
ter of the gold standard and ended forever this exposure of
the American banking system to waves of liquidation coming
from abroad.
In recent years/ we have gone further; and,
through the international institutions set up by the Bretten
Woods Agreement Act, we are#now endeavoring to stop these
waves of liquidation at their
source and to establish an
#
orderly world economy in which all forms* of private trade and
investment can go forward with 'assurance.
I have not attempted to discuss the fiscal policy of the
Treasury.
This important subject will be fully discussed by
Secretary Snyder at the meeting of the American Bankers
Association in Chicago on September 24.
I shall only say that
I am in hearty sympathy with President Truman and Secretary
Snyder in their firm purpose to balance the budget at the
earliest possible moment and to make‘provision as quickly as
conditions will warrant for the beginning of an orderly retire
ment of our public debt.
-
11
-
emergency corporation, called into being by adversity.
It did
its job well in the banking c r i s i s , B u t ,
fortunately, we now have at our disposal instruments which are
designed — and which I believe are able —
to prevent such
crises, rather than merely palliating them after they occur.
The Rl Fjf Cj has now liquidated almost all of its advances
to banks and the greater part of its holdings of bank preferred
stock.
It has shown in this liquidation a record of which its
directors have a right to be proud.
But we must never lose sight of the fact that the R^F^Cy
was created to serve in a period of grave emergency and that
its greatest value is that of a stand-by facility.
Finally, I should like to mention the change which has
taken place in the past fifteen years in the position of the
American banking system in respect to storms in the world
economy. In many respects, this change is the most important of all*
Many of you remember reading in your newspapers in the
Spring of 1931 of the troubles of the Credit Anstalt in Austria.
You also remember that the wave of liquidation, which started
in Austria and swept through Germany and England, hit the United
States in the Fall of 1931, aggravating an already growing
domestic crisis.
That is the way the old gold standard worked.
of his balance sheet.
The community is looking to him to pro
vide a portion of the funds necessary, not only for its working
capital, but also for some of its fixed assets.
The
has contributed materially to the solution of
this dilemma, as far as housing loans are concerned.
Moreover,
while it has made housing loans safe enough for conservative
bank investment, it has still left to the bank, subject to
the supervision of the FHA, the responsibility of choosing them,
servicing them, and — when worse comes to worst —
of enforc
ing the liens.
The F^D^I^Cj, the S^E^Cj, and the F^H|A* are not the only
new aids which the government has installed in the past fifteen
years to make banking a safer and more certain business.
I should have mentioned, in passing, the separation of
the functions of commercial banking and of underwriting private
securities.
This was effected by the Banking Act of 1933.
In
addition, the Banking Acts of 1933 and 1935 extended the scope
of the Federal Reserve System by broadening the definitions of
paper which the Federal Reserve Banks can accept as collateral,
and by providing an over-all control for the open-market opera
tions of the System.
The past fifteen years have also seen the birth and development of the Ri
commenced operations as an
- 9 -
which turned out to be good and some of which did not*
The
blue sky was his horizon.
No one ever heard of a registration statement; and a
prospectus might contain- anything, or more likely, might not
be forthcoming at all*
If you inquired too closely about an
issue, you might be cut off the preferred list of the offering
house.
You were expected to take a few not-so-good offerings
in order to get your share of the choice and extra special ones
The
has not dispelled the mystery of the future*
The future will always be uncertain.
But the S^EyCj has given
you better data upon which to base your judgments.
It has re
quired that the seller of securities find out the real facts
about them and that he reveal these facts to the buyer.
Another innovation in Government during the past fifteen
years has made banking a less uncertain business.
This is the
FjH^A.
The commercial banker is and always has been confronted
with a dilemma.
sheet.
One horn is the liability side of his balance
A very small portion of the funds which he employs are
the property of his stockholders.
Most of them are funds which
have been left with him for safekeeping — funds which their
owners consider to be cash.
The other horn is the asset side
-
8
-
tremendous contribution in the past fifteen years in installing
constructive aids to banking navigation.
First, there is the F / D ^ C .
The F | D ^ C 7 insures you
that it will be your own sailing, and not the other fellow's,
which determined whether you cross the finish line.
The
fjVjTjCldoes not insure you as a banker against loss.
It insures your small depositors against loss.
Formerly, they
were expected to judge for themselves the quality of your
assets.
Now, all that they have to know is that your bank gives
them good service and that it is insured by the Fp|I|C.
But, more important to you as a banker, the F p p p j in
sures you against the consequences of the mistakes of your
small depositors — mistakes which they used to make in the
evaluation of your assets.
In pre-FiDjCI|C. days, many a bank
went down when it was really set on the right course and would
have paid out handsanely if its depositors had only given it a
chance.
The F p p p f insures you against depositor panic.
The second innovation of the past fift e e n years is the
S^ C.
The S p p j improves the v i s i b i l i t y o f the channel in
which you must navigate.
Many of you can remember the bond salesmen who used to
call on you in the '20's.
They had a line of bends, some of
now at the beginning of an era of peace after-war.
No matter §
rihat may lie ahead, we are infinitely better equipped to moot
the weiooibwdoe ef-the future in banking, commerce and business
than we were at the end of the '20's,
Business is good today.
**
Any man who wants a job can find
one — perhaps not exactly the one he wants, or even the one
he deserves, but a good one.
Business is good for employers also.
glad to hire all the labor they can get.
Business with the banker is gopd.
nessman’s businessman.
Most of them are
They are making money.
The banker is the busi
When business is good for other business
men, it is generally good for bankers.
Today it seems easy to
be a good banker; in 1932 it seemed hard.
But I know that you
$
are not taken in by appearances.
If you are, you are not real
bankers, and sooner or later, both you and the public are going
to find it out.
The fact is that it is just as hard to be a good banker
today as it was in 1932.
It would be eYejp harder if your
government had not supplied some very important services that
*
were utterly lacking in the period of the f20*s.
The establishment of aids to navigation is one of the
oldest functions of Government.
Your Government has made a
- 6 -
We must never forget that much of this accumulated state
revenue is also blood money.
It came out of the veins and
arteries of a nation at war.
To my mind, onejaf our gravest
dangers in this period is that we are likely to regard this
unprecedented stream of state revenue as the natural flow.
The
day may ccme when the high peaks of the war period will appear
as dim outlines against stark realities, just as it did ten
years after the last war.
It will then dawn upon all of us
that wars do not make wealth —
they destroy it; that states do
not make money — they spend it.
There is much discussion today as to the value of the
dollar.
I believe it is the soundest money in the world.
There
are, roughly speaking, two ways to make money, one by way of
the printing press, title other by work.
divine doctrine of work.
I am a disciple of the
It must have been in mercy and not
in wrath that man was commanded to eat his bread in the sweat
of his face.
I believe that the bankers of America and the members of
this Association should assume the leadership as we descend
from the attic of wartime revenues to the plateau of matching
revenues and expenditures.
Our present period is also unlike the period just described
in this respect:
That period marked the end of an era; we are
- 5 out of its surplus for the retirement of all of its p? esently
outstanding general fund debt.
In fact, all forty-eight state
governments, by generally holding firm their tax rates and by
moderately increasing their expenditures during the past six
years, have participated in an expanding economy in which the
¿)0j000i00 3
national income has increased from $77.6 ''MiUMi in 1940 to
^
.
:•
Ux
that which is currently running at an annual rate of approxi-
e>60j 046/060*
mately $160 bollxoti.
In these ways the states have contributed
powerfully to the national battle against inflation.
They
have retired large amounts of public debt and they have built
their cash reserves far beyond the dream of any preceding
generation.
The Executive Director of the Council of State Governments
reported last year as follows:
”....today the states are in better financial
condition than they have been at any other time during
the past half-century. The states have reduced their
over-all indebtedness By approximately 25 percent;
in general, they have maintained tax rates to assist
in the anti-inflation program; they have accumulated
within the past two years and they have invested in
government bonds, more than $4 billion; and they now
have in their unemployment compensation reserve funds
of more than $6 billion.”
This is a grand record and the states today are in splendid
condition to render still greater service to their citizens.
maintaining essential public service, as well as the character
and the credit of my state.
What was I to do in such a dilemma?
I decided that it was necessary, in the public interest, for
me to forget all political ambitions and assume the risk.
recalled the divine injunction and tried to apply it:
I
ttThat
he who would save his life must be willing to lose it.*1 It
was a question of hcwr I would use the power that had been
granted to me.
As Director of the Budget, I cut legislative
appropriations for the first biennium in the amount of
$3,500,00Q# and in the second biennium was compelled to re-
f
0€>*t
duce the'cost of government an additional ?i . M W t ' tiq■vfoifrlwrsr:
This sounds like chicken feed now, but it was blood money then —
money out of the arteries and veins of public service.
I am happy to say that our essential public services
continued to function and the credit of North Carolina was
saved.
The state today is so prosperous that I fear it may
forget the agonies of the period just described.
In this
connection, I am proud to say that North Carolina never failed
to meet a payroll on time and never defaulted on any debt in
this period.
And I am more than happy to add that, today,
North Carolina, like a number of other states, has provided
- 3 ¿3 0#,
growth.
00 0
At the end of 1920, the state debt was $13 m&irm.
^
000,00
6
When I went into office, the first of 1929, it was $178, m4lliorK
The pride of the people and their hopes were boundless.
Neither
the General Assembly nor business nor industry saw a cloud on
the horizon.
In October of 1929, without warning, the bubble burst;
the joy ride was over.
Thereafter, each successive six months
of the remainder of my administration saw the economic trend in
the nation as a whole and in my state in retreat.
The bold
stream of revenue dwindled to a trickle.
During the past three to four years, and especially in
the past year, you and I have heard and learned a great deal
about the dangers of inflation and deflation.
Both are bad.
But I am here to tell you that in the period from 1929 to 1933
I learned, through struggle and personal and official punishment,
that, of the two evils, deflation is equally as deadly as in
flation, if not more so.
Fomyself, I am a bull on America
and have complete confidence in the economic stability of this
country.
In this period of nightmare, as Director of the Budget
of North Carolina, I was confronted on the one hand with
dwindling revenue and on the other hand with the necessity of
-
2
-
living in a period of perpetual prosperity and how it feels
suddenly to tumble into the basement of bankruptcy.
Having
experienced all these vicissitudes in state government, I
learned the hard lesson that, whether things look good or bad,
we must face the facts.
If you will pardon me, I would like to tell you of some
of the conditions that prevailed in the late *20*8 after the
last war, as they may have some bearing on our action with
respect to the problems now facing the states and the nation
in this period.
of the past.
There is real value in remembering the lessons
We are all prone to forget.
I do not contend that conditions of this period are similar
or identical with the conditions of the late *20*s, but there
are people who think that we are afflicted with some of the
same symptoms that prevailed in that period.
When I came into office as Governor in 1929, the eight
years preceding had been years of uninterrupted expansion of
public service and public spending.
In these eventful eight
years^/ North Carolina had been lifted from lethargy to perhaps
the most dynamic commonwealth in the sisterhood of states.
Schools, roads, institutions, all departments and agencies of
government, had been touched with the stimulation of unprecedented
FINAL DRAFT
BANKING AND GOVERNMENT
By
G. Max Gardner, Under Secretary of the Treasury
At The Annual Convention of
The National Association of Supervisors of State Banks
Cleveland, Ohio - September 19, 1946
*
*
*
#
#
#
When I received the invitation to speak before this dis
tinguished group, I was very much constrained to decline, not
from lack of appreciation, but for fear'of my ability in .this
period to interpret the kaleidoscopic changes that are taking
place throughout the world affecting your interest.
However,
I consider it a high honor and privilege to be here.
I have
known some ©f you personally and others by reputation, by
virtue of having been Governor of North Carolina.
As a former
bank director and business executive, I feel that I know some
thing of the banking problems of your respective states.
I
know I am in sympathy with sound banking, and I feel very
definitely that this group has a large part in the preservation
of the economic security of our country.
It has been my fortune— or misfortune— to have spent many
years in public office.
As Governor of North Carolina, I ex
perienced economic chills and fever, the delirium of boom and
the agony of bust.
I know how it feels to believe that you are
TREASURY DEPARTMENT
Washington
(The following address by 0. Max Gardner, U n d e r
S e c r e t a r y of the Treasury, at the Annual C o n v e n t i o n
of the N a t i o n a l A s s o c i a t i o n of Supervisors of State
Banks, at the Hotel Cleveland, Cleveland, Ohio, is
scheduled for d e l i v e r y at 10:00 A , M . , E a s t e r n S t a n
dar d time, Thursday, September 19, 1946, and is for
release at ¥ h a t time.)
B A N K I N G A ND G O V E R N M E N T
W h e n I received the invitation to speak before this
d i s t i nguished group, I was very m u c h constrained to decline,
not from lack of appreciation, b u t for fear of my ab i l i t y
in this period to interpret the k a l e i d oscopic changes that
are taking place t h r o ughout the world affecting your interest.
However, I c o n s i d e r it a h i g h honor and privilege to be here.
I have k n own some o f you p e r s onally and others b y reputation,
by virtue of h a v i n g b e e n Governor of N o r t h Carolina.
As a
former b a n k d i r e c t o r and business executive, I feel that I
know something of the b a n k i n g problems of your respective
states.
I k n o w I am in sympathy w i t h sound banking, and I
feel very d e f i n i t e l y that this group has a large part in the
preservation of the economic security of our country.
It has been m y f o r tune - or misfortune - to h a v e spent
many years in public office.
As G o v ernor of N o r t h Carolina,
I e xperienced ec o n o m i c chills and fever, the d e l i r i u m of
boom a nd the agony of bust.
I k n o w h o w it feels to believe
that y o u are living in a period of perpetual p r o s p e r i t y and
■foow it feels suddenly to tumble into the basement of b a n k
ruptcy.
H a ving expe r i e n c e d all these vicissitudes in state
government, I learned the har d l e s s o n that, w h e t h e r things
look good or bad, we mus t face the facts.
If y ou will p a r d o n me, I would like to tell yo u of some
of the conditions that prevailed in the late ’2 0 fs a f ter the
last war, as they m a y have some bearing on our a c t i o n w i t h
respect to the problems now facing the states and the n a t i o n
in this period.
There is real value in remembering the l e s
sons o f the past.
We are all prone -to forget.
I
do n o t contend that conditions of this p e r i o d
ilar, to or identical w i t h the conditions of the late T2 0 fs,
but there are people who think that we are a f f l i c t e d w i t h
some of the same symptoms that pre v a i l e d In that period.
S-82
sim
2
W h e n I came Into office as G o v e r n o r in 1929, the eight
years p r e c e d i n g h a d b e e n years of u n i n t e r r u p t e d e x p a n s i o n of
public service and p u b l i c spending.
In these e v e ntful eight
years N o r t h Carolina ha d b e e n l i f t e d f r o m l e t h a r g y to p e r
haps the m o s t dynamic c o m m o n w e a l t h in the s i s t e r h o o d of states.
Schools, roads, institutions, all d e p a r t m e n t s a nd age n c i e s of
government, had b een touched w i t h the s t i m u l a t i o n of u n p r e c e
dented growth.
At the end of 1920, the state debt was
#13,000,000.
W h e n I went into office, the first o f 1929, it
was # 1 7 8 , 0 0 0 , 0 0 0 .
The pride of the p e o p l e a nd their hopes
were -boundless. N e i t h e r the General A s s e m b l y n o r b u s iness
nor industry saw a cloud on the horizon.
In October of 1929, without, warning, the b u b b l e burst;
the joy ride was over.
Thereafter, e ach successive six
months of the r e m a i n d e r of m y a d m i n i s t r a t i o n saw the economic
trend in the nation as a whole and in m y state in retreat.
The bold stream o f revenue d w i n d l e d to a trickle.
During the past three to four years, and esp e c i a l l y in
the past year, you and I have heard and l e a rned a great deal
about the d a n g e r s of i n f l a t i o n and deflation.
B o t h are bad.
But I a m here to tell you that in the period fro m 1929 to
1933 I learned, t h r o u g h struggle and personal and official
punishment, that, of the two evils, def l a t i o n is e q u a l l y as
deadly as inflation, if not more so.
For myself, I am a bull
on America and have complete .confidence in the e c o n o m i c
stability o f this country.
In this p e r i o d of n ightmare, as D i r e c t o r o f the B u d g e t
of N o r t h Carolina, I was c onfronted on the one h and w i t h
dwindling revenue and on the other hand w i t h the n e c e s s i t y
of m a i n t a i n i n g essential public service, as well as the
character and the credit of m y state.
W h a t was I to d o in
such a di l e m m a ?
I d e c i d e d that it was necessary, in the
public interest, for m e to forget all political a m b i tions and
assume the risk.
I r e c alled the d i vine i n j u n c t i o n and t r ied
to a p p l y it!
"That he who would save his life m ust be w i l l i n g
to lose i t . ” It was a q u e s t i o n of how I would us e the p o w e r
that h a d bee n g r a n t e d to me.
As D i r e c t o r o f the Budget, I cut
legislative a p p r o p r i a t i o n s for the first b i e n n i u m in the
amount of # 3 , 5 0 0 , 0 0 0 and in the second b i e n n i u m was com p e l l e d
to reduce the cost of g o v e r n m e n t an add i t i o n a l # 6 ,0 0 0 ,0 0 0 .
This sounds like chicken f eed now, but it was b l o o d m o n e y t h e n money out o f the arteries and veins of p u b l i c service.
3
I
am h a p p y to say t h a t o u r ess e n t i a l p u blic services
continued to function and the credit o f N o r t h Carolina was
saved.
The state today is so p r o s perous that I fear it m a y
forget the agonies of the period just d e s c ribed.
In this
connection, I a m p r o u d to say that N o r t h Carolina n e v e r
failed to m e e t a payroll on time and n e v e r d e f a u l t e d on any
debt in t his period.
And I a m mor e than h a p p y to add that,
today, N o r t h Carolina, like a n u m b e r o f other states, has
provided out of its surplus for the r e t i r e m e n t of all of its
p r e s e n t l y o u t s t a n d i n g general fund debt.
In fact, all fortyeight state governments, by g e n e r a l l y h o l ding fir m their tax
rates and by m o d e r a t e l y increasing their e x p e n d i t u r e s d u r i n g
the past six years, have p a r t i c i p a t e d in an e x p a n d i n g e c o nomy
in w h i c h the national income has increased f r o m f 7 7 , 6 0 0 , 0 0 0 , 0 0 0
in 1940 to that w h i c h is c u r r e n t l y r u n n i n g at an annual rate
of a p p r o x i m a t e l y $160,000,000,000..
In these ways the states
fyave cont r i b u t e d p o w e r f u l l y to the n a t i o n a l b a t t l e ag a i n s t in
flation.
They have re t i r e d la r g e amounts o f public deb t and
they have b u ilt their c a s h reserves far beyond the d r e a m of
any pre c e d i n g generation.
The E x e c u t i v e D i r e c t o r of the C o u ncil
ments r e p o r t e d last y e a r as follows:
of State G o v e r n
” ••••• today the states are in b e t t e r financial
c o n d ition than t hey have been at any other time d u r
ing the past halft c e n t u r y .
The states have reduced,
their over-all i n d e b tedness b y a p p r o x i m a t e l y 25 p e r
cent; in general, they have m a i n t a i n e d tax rates to
assist in the a n t i - i n f l a t i o n program; they have
a c c u m u l a t e d w i t h i n the past two years and they have
invested in gove r n m e n t bonds, more than $ 4 billion;
and t h e y n o w have in their u n e m p l o y m e n t c o m p e n s a t i o n
reserve funds of mor e than $ 6 b i l l i o n . ”
This is a grand record and the states today are in
splendid condition to render still g r e a t e r service to their
citizens.
We must n e v e r forget that m u c h of this a c c u m u l a t e d
state r e v enue is a lso blood money.
It came out o f the veins
and a r t eries of a n a t i o n at war.
To m y mind, one of opr
gravest d a n g e r s in this p e r i o d is that we are l i k e l y to regard
this u n p r e c e d e n t e d s t ream o f state revenue as the natural flow.
The d ay m a y come w h e n the h i g h peaks of the w a r period will
appear as ^dim outlines against stark realities, just as it did
ten y e ars after the last war.
It w ill then d a w n u p o n all of
us that w ars do n o t m ake w e a l t h - they d e s t r o y it; that states
do not make m o n e y - they spend it.
4
There is m u c h disc u s s i o n t o d a y as to the v a lue o f our
dollar.
I b e l ieve it is the soundest m o n e y in the world.
There are, roughly speaking, two ways to make money, one by
w ay of the printing press, the other by work.
I am a
disciple of the d i v i n e d o c t r i n e of work.
It m u s t have bee n
in m e r c y and not in w r a t h that m a n was c o m manded to eat his
bread in the sweat of his face.
I
b e l i e v e that the bankers o f A m e rica and the m e m b e r s
of this Asso c i a t i o n s h o u l d a s s u m e the l e a d e r s h i p as we d e
scend from the attic of wartime revenues to the p l a t e a u of
m a t c h i n g r e v e n u e s and e x p e n ditures.
Our present p e r i o d is also u n l i k e the period just
d e s c r i b e d in this respect:
Tha t p e r i o d m a r k e d the end of an
era; we are no w at the beg i n n i n g of an era of peace a f ter war.
No m a t t e r what may lie ahead, we are infinitely b e t t e r f o r t i
fied to stabilize
the future in banking, commerce and b u s i
ness
than we wer e at the en d of the ’2 0 ’s, w h e n we h a d no
effective shock absorbers.
Bu s i n e s s is good today.
A ny m a n who wants
find one - perhaps n ot exactly the one he wants,
one he deserves, but a good one.
a job can
or even the
B u s i n e s s is good for e m p l oyers also.
M o s t of t h e m are
glad to hire all the l a b o r they can get.
T hey are m a k i n g
money•
B u s i n e s s w i t h the b a n k e r is good.
The b a n k e r is the
b u s i n e s s m a n ’s busin e s s m a n .
W h e n b u s i n e s s is goo d for other
businessmen, it is g e n e r a l l y goo d for bankers.
T o d a y it
seems e asy to be a g o o d banker; in 1932 it seemed hard.
But I know that you are
n o t taken in by a p p e a r a n c e s .
If
you are, you are n o t real bankers, and sooner or later, b o t h
you and the p u blic a r e going to find it out.
The fact is that it is just as hard to be a good banker
today as it wa s in 1932.
It w o u l d be even h a r d e r if y o u r
g o v e r nment h ad n ot s u p plied some ver y important services that
were u t t e r l y lacking in the p e r i o d o f the ’2 0 ’s,
The e s t a b l i s h m e n t of aids to n a v i g a t i o n is one o f the
oldest functions of G o v e r n m e n t ,
Y o u r G o v e r n m e n t has made a
tremendous c o n t r i b u t i o n in the past f i f teen years in i n s t a l l
ing const r u c t i v e aids to b a n k i n g n a v i g a t i o n .
5
First, there is the FDIC.
The FDIC insures y o u that
it will he your own sailing, and not the other f e l l o w ’s,
w h i c h d e t e r m i n e s w h e t h e r you cross the finish line.
The FDIC does not insure you as a b a n k e r ag a i n s t loss.
It insures your small d e p o s i t o r s a g a i n s t loss.
Formerly,
they wer e e x p ected to judge for t h e m selves the q u a l i t y o f y
your assets.
Now, all tha t t hey have to k n o w is that y o u r
bank gives them g o o d service and that it is insured by the
FDIC,
But, m ore important to you as a banker, the FDIC i n
sures you a g a i n s t the c o n s e q u e n c e s of the m i s t a k e s of your
small d e p o s i t o r s - m i s t a k e s w h i c h they use d to make in the
e v a l u a t i o n of your assets.
In pre-FDIC days, m a n y a b a n k
went down w h e n it was really set on the r i g h t course and
would have paid out h a n d s o m e l y if its d e p o sitors h ad only
given It a chance.
The FDIC insures yo u against d e p o s i t o r
panic.
The s e c o n d i n n o v a t i o n of the p a s t f i f teen years is the
SEC,
The SEC improves the v i s i b i l i t y of the channel in w h i c h
you must n a v igate.
M a n y of y o u rem e m b e r the bond s a l esmen w ho used to call
on you in the ’2 0 ’s.
T h e y had a line of bonds, some o f w h i c h
turned out to b e good and some of w h i c h did not.
The blue
sky was h i s horizon.
No one ever h e a r d of a r e g i s t r a t i o n statement; and a
pros p e c t u s m i g h t c o n t a i n anything, or more likely, m i g h t not
be forthcoming at all.
If you inquired too c l o s e l y about an
Issue, y o u m i g h t be cut off the p r e f e r r e d list of the o f f e r
ing house.
Y o u were e x p e c t e d to take a few n o t - s o - g o o d
offerings in o r d e r to g e t your share of the choice and extra
special ones.
The SEC has n ot d i s p e l l e d the m y s t e r y - o f the future.
The future will always be u n c e rtain,
But the SEC has g i ven
you b e t t e r data u p o n w h i c h to base y o u r judgments.
It has
required that the seller of s ecurities find out the real
facts a b o u t t h e m and that he reveal these facts to the buyer.
A n o t h e r i n n o vation in G o v e r n m e n t d u r i n g the past fifteen
years has mad e b a n k i n g a less u n c e r t a i n b u s i n e s s .
This is the
FHA,
6
The c o m m e r c i a l b a n k e r is a n d always has b e e n c o n f r o n t e d
w i t h a dilemma.
One h o r n is the l i a b i l i t y side of his b a l a n c e
sheet.
A v e r y small po r t i o n of the funds w h i c h he employs are
the p r o p e r t y o f his st ockholders.
M o s t of t h e m are funds
w h i c h have bee n left with h i m for s a f e k e e p i n g - funds w h i c h
their owners consider to b e cash.
The o t her h o r n is the asset
side o f his b a l a n c e sheet.
The community is l o o k i n g to h i m to
provide a p o r tion of the funds necessary, n o t only for its
working capital, but also for some o f its fixed assets.
The FHA has c o n t r ibuted m a t e r i a l l y to the so l u t i o n of
this dilemma, as far as h o u sing loans are concerned.
More
over, while it has made h o u s i n g loans safe enough for c o n s e r
vative b a n k investment, it has still left to the bank,
subject to the s u p e rvision of the FHA, the r e s p o n s i b i l i t y of
choosing them, servicing them, and - w h e n w o rse comes to w o r s e
of enf o r c i n g the liens.
The.FDIC, the SEC, and the FHA,are not the only n e w
aids w h i c h the Government has ins t a l l e d in the past f i f teen
years to make b a n k i n g a safer and more c e r tain business,
I
should have mentioned, in passing, the s e p a r a t i o n of
the functions of c ommercial b a n k i n g and of u n d e r w r i t i n g p r i
vate securities.
This was effected b y the B a n k i n g Act of
1933,
In addition, the B a nking Acts o f 193 3 a nd 1935 extended
the scope of the Federal Reserve S y s t e m b y b r o a d e n i n g the
definitions o f p a p e r w h i c h the Fe d e r a l Reserve Banks can a c
cept as collateral, and b y p r o v i d i n g an. over-all control for
the o p e n - m a r k e t operations o f the System;
The past fifteen years have a l s o seen the b i r t h and
d e v e l o p m e n t of the RFC.
The RFC co m m e n c e d ope r a t i o n s as an
em e r g e n c y corporation, called into b e i n g by a d v e rsity.
It
did its job well in the b a n k i n g crisis.
But, fortunately,'
we n o w have at our disposal i n s t r u m e n t s w h i c h are d e s i g n e d and w h i c h I b e l i e v e are able - to p r e v e n t s u c h crises,
rather than m e r e l y p a l l i a t i n g t h e m after they occur.
The RFC has n o w l i q u i d a t e d almost all of its advances
to banks and the g r e a t e r part of dhts h o l d i n g s of b a n k p r e
ferred stock.
It ha s shown in this l i q u i d a t i o n a record of
w h i c h its d i r e c t o r s h a v & a right to be proud.
7
But we must n e v e r lose sight of the fact sthat the RPC
was created to serve in a period of grave em e r g e n c y and that
its greatest value is that of a s t a n d - b y facility.'
Finally, I should lik e to m e n t i o n the change w h i c h has
taken place in the past fifteen years in the p o s i t i o n of the
American b a n king system in r e s pect to storms in the world
economy.
In m a n y respects, this change is the m o s t imp o r t a n t
of all.
M a n y o f you re m e m b e r r e a d i n g in y o u r n e w s p a p e r s in the
Spring of 1931 of the troubles of the C r e d i t Anstalt in Austria.
You also r e m e m b e r t h a t the wave of liquidation, w h i c h started
in A u s t r i a and swept t h r o u g h G e r m a n y and England, hit the
United States in the Pall o f 1931, a g g r a v a t i n g an a l r e a d y
growing d o m e s t i c crisis.
That is the w a y the old g o l d standard
worked.
It acted as a m e d i u m - almo s t a p e r fect d o n d u c t o r for t r a n s m i t t i n g cfises from country to country.
Congress, b y the m o n u m e n t a l l e g i s l a t i o n of 193 3 and 1934,
culminating in the G o l d Reserve Act, c h anged the entire c h a r a c
ter of the gold s t a n d a r d and ended forever this exposure of
the American b a n k i n g s y s t e m to waves of l i q u i d a t i o n coming
from abroad.
In recent years we have gone further; and,
through the i n t e r n a t i o n a l i nstitutions set up b y the B r e t t o n
Woods A g r e e m e n t Act, we are n o w ende a v o r i n g to stop these •
waves o f l i q u i d a t i o n at their source a nd to e s t a b l i s h an orderly w o r l d e c o n o m y in w h i c h all forms of p r ivate trade and
investment can go forward w i t h assurance.
I
have n o t a t t e m p t e d to discuss the fiscal p o l i c y * o f
the Treasury.
This important subject will be fully d i s c u s s e d
by S e c r e tary Snyder at the m e e t i n g of the A m e r i c a n B a n k e r s
A s s o c i a t i o n in Chicago on S e p t e m b e r 24.
I shall only say that
I a m in h e a r t y s y m p a t h y w i t h P r e s i d e n t T r u m a n and S e c r e t a r y
Snyder in t h eir firm purpose to b a l a n c e the b u d g e t at the e a r
liest p o s s i b l e m o m e n t and to m ake p r o v i s i o n as q u i c k l y as
conditions will w a r r a n t for the beginning- of an or d e r l y r e t i r e
ment
our p u b l i c debt.
of
I
a m not a pes s i m i s t on the future of this nation.
believe in the c a p a c i t y o f the A m e r i c a n p-eople to solve every
p r o b l e m that d u t y brings before them.
In e v e r y great h o u r of
crisis, the peop l e of this c o u n t r y hav e met the test.
When
the chips are down, we always find sons of s t r e n g t h to r e s p o n d
this, n a t i o n 1 s need.
Ours is a n a t i o n b u i l t on the doctrine
that n o t h i n g is more precious than h u m a n freedom.
I agree
with B e n j a m i n F r a n k l i n that those w h o give up e s s ential l i b erty
in order to secure a little safe t y de s e r v e n e i t h e r l i b e r t y nor
safety.
Y?
I
8
I know what our critics say about us, but we do not
p r e tend t h a t A m e r i c a has a perfect system o f gove r n m e n t .
N o b o d y knows b e t t e r than our people h o w i n e f f i c i e n t and
reckless we sometimes become.
But these signs are s u p e r
ficial and n o t fundamental.
You and I know that the h e a r t
cf this n a t i o n is sound.
Its intentions and instincts are
in the right d i r e c t i o n and are h o nest and who l e s o m e .
It is
the real c h a r a c t e r o f a. people, n ot the occasional slips
and falls, that u l t i m a t e l y d e t e r m i n e s the fate of a n a t i o n
and the terminal o f the road u p o n w h i c h they travel.
In. some way, somehow, in G o d ’s divi n e economy, our
country falls w i t h i n the marvelous simile of Fisher Ames
when he said that a d i c t a t o r s h i p is like a b a t t l e s h i p beautiful in motion, irresistible w h e n u n d e r way, but a
single hidd e n rock m a y send her to the bottom; while
D e m o c r a c y is a raft - always in trouble, you r feet are
always wet, but nothing, thank God, can sink her.
N o t w i t h s t a n d i n g the intimate r e l a t i o n s h i p of i n t e r
national affairs to our d o m e s t i c economy, I have not a t t e m p t e d
to explore this field.'
To me, there are certain eternal and
universal p r i n c i p l e s in the rel a t i o n s of m an w i t h m an and
n a tion w i t h n a tion that s h o u l d ’n e v e r be forgotten.
T h ese p r i n
ciples w e r e not c r e a t e d by c o n s t i t u t i o n s and w o r l d charters.
They inhere in free g overnment itself, for h u m a n f r e e d o m is
impossible w i t h o u t them.
A m ong these rights there is none
more fundamental t h a n thiss
"No citizen shall he d e p r i v e d of
his life, l i b e r t y or p r o p e r t y except by the judgment of the
law and a f ter trial before an i n d e p e n d e n t and i m p artial t r i
b u n a l . n To me, this represents the A rk of the C o v e n a n t of
our n a t i o n a l ansi i n t e r national salvation.
0O0
S*85
Mailing
list
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150
178
E&B (
'
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156
275
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( j News Editors
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c ;)
Speech list ........
200
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135
22
BUL (
No* copies
to be sent
$
225
469
1,575
186
PUBLIC RELATIONS, Room. 4416 • , • •
-Tlt,.rLJ
Press room • • , ,
200
25
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Building distribution
7/1/45
150
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DIVISION OF PUBLIC RELATIONS
Assignment sheet.
Release date
Certificate«, «S-1S47
Title
Press Service No,
9/18/46_______
S-83
Bldg,
dist.
(
)
Special messenger
65
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General
* • • •
TAC
()
Trade Agreement Commodities
* • • t
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Ml«« Rover (Fl«»«« de
•• • • • • • • • • *
CFQ
()
Coffee quotas
CQ
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Cotton quotas •
YfQ
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• • • • • •
V * *
BUL (
) Treasury monthly M ^ ^ V n
F
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(
)
Taxes * • # • • « ,
DLI (
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Debt limitation # » « • « , ,
SF
(
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B
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list
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transactions , * • • • •
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4 4 * 4 4
#
*
^
Bills & Bonds other than weekly , *
( ) Financial Editors
( ) News Editors . . . . . . . . . . .
( ) Speech list
469
1,575
PUBLIC RELATIONS, Room 4-416 , • . ,
Press room . • • .
OTO
.
Building distribution
7/ 1/45
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Wednesday. September IS« 194.6»
Press Service
S~Gy
Secretary of the Treasury Snyder-today announced the offering, through
the Federal Reserve Banks, of 7/8 percent Treasury Certificates of Indebted
ness of Series J-1947, open on an exchange basis, par for par, to holders of
Treasurj/- Certificates of Indebtedness of Series H—1946, in the amount of
$3,439,655,000, which will mature on October 1, 1946» Since it 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 $25,000 will be
allotted in full. Cash subscriptions will not be received.
The certificates now offered will be dated October 1, 1946, and will bear
interest from that date at the rate of seven-eighths of one percent per annum,
payable with the principal at maturity on October 1, 1947. They Will be issued
in bearer form only, in denominations of $1,000, $5,000, $10,000, $100,000 and
$1,000,000,
Pursuant to the provisions of the Public Debt Act of 1941, interest upon
the 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, Septem
ber 20, except for the receipt of subscriptions from holders of $25,000 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, Septem
ber 23.
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 J-19Ì+7
Due October 1, 191+7
Dated and bearing interest from October 1, 191+6
191+6
Department Circular No. 7914-
TREASURY DEPARTMENT,
Office of the Secretary,
Washington, September Ì8, 191+6
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 J-191+7 in
exchange for Treasury Certificates of Indebtedness of Series H-191+6, maturing
October 1, 19h6. Approximately $2,000,000,000 of the maturing certificates will
be retired on cash redemption.
f
II.
DESCRIPTION OF CERTIFICATES
1. The certificates will be dated October 1, 191+6, and will bear interest
from that date at the rate of 7/8 percent per annum, payable with the principal
at maturity on October 1, 191+7. They will not be subject to call for redemp
tion prior to maturity.
2. The income derived from the certificates shall be subject te 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 ©r
interest thereof by any State, or-any of the possessions of the United States,
or by any local taxing authority.
3. The certificates will Y)e acceptable to secure deposits of public moneys.
They will not be acceptable in payment of taxes.
1+. Bearer certificates will be issued in denominations of $1,000, $£,000,
$10,000, $100,000 and $1,000,000. The certificates will not be issued in regis
tered form.
£. .The certificates will be subject to the general regulations of the
Treasury Department, now or hereafter prescribed, governing United States
certificates.
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 vri.th.out
notice; and any action he may take in these respects shall be final. Subject to
these reservations, subscriptions for amounts up to and including $ 25>,000 will be
allotted in full, and subscriptions for amounts over $2p,€>00 will be allotted to
all holders on an equal percentage basis, but not less than $2^,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 October 1, 19U6, or on later allotment, and may be made only in Treasury
Certificates of Indebtedness of Series H-19U6, maturing October 1, 19U6, 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 author
ized and requested to receive subscriptions, to make allotments en the basis and
up to the amounts indicated by the Secretary of the Treasury to the Federal Re
serve BanJ.cs 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 pending 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 offering,
which will be communicated promptly to the Federal Reserve Banks.
John W* Snyder,
Secretary of the Treasury.
Ir
*mte«
r Sute»
te nter te )wr
#C M M t e i% ifii* teta»
* » n**tate «te» «*** *u> s t e n tea tetar, «• tetelf * f te*
taita* rutee tiw w M it. te fctft** tea l É M t a l
tete teKi «te |«r « o » «* te* í «ü m > te O t e * « «te « t e T ^
teí««r tente
c**taa r f g*U te«a»taatet («/tal
te**» tata
p&rte w , ta*ad a» te» n te «f ws«%» m u .
tac m tete»** a i, 3gg& te* atete*«» «Say teten «te «Mor
tal* ta n * * f te* ir t U U i «r ¿g n m te «f te* Iit a t e t a t e
«MMten tete» te Uaattate tete te* «tegte «te ♦— r» m te1
te* «Mitad Stata* t a l » te atetar« a* J » ir X» i« Á » ra fa m d
te
Hs#
|». teate** i, *r te* tetete«?** ¿ ¿ m a t e *f
Wmmémtf
$wé*
te* W W Étata# t e n ía t e teten * te*« te* *ar teta*
te n ««HMtewtod ateta te te* par «ata* *r te* ¿tetar ta r te*
teKteta* «f te* tete
m
a a r t U t e ta taltal* M » teatta* *{*).
teta par tai*# a# «te ¿tetar ta t e t e rm>*ur¡lni taf t* te*
M t e t e t e f it t e N t e m t e t a r f t e k t M iL .
«Mtad ilatea tetara***« teaa w l teta*** tea» 1«
t e íl te «arañar? te «ate a*r «pítete «»*■«••**** tm te*
«te*Mte*i *f «te p# atete *f «te t a t a tete «te M
m á x m m $ murnrnX i á m m m $ * m m U
m
«» tafammi&miml
tetes»* ttimal ü M w t e ^ r m
M á
f l« * « « < « f
Ir * ém m * m%%.
tetem t a ^ teawterr tete,
fhteiritnt i«m«i
Stxpú&r aaet® th#
following annmuiceiMntj
**• Banaglng Director of «te Itaornottoisai Honatary Faná tea roquoatad te* M
M
State, by tettar of tepteater 12, 1946, to advlae
«te tete of thè per «alni «f «te cnrrcncy. jÁTchalnaan of tte tetiowl
Adriaory Counell en XntermUonol Xoaatazy ate rinanolal rrrilatw», I
tete today infernad tho tete tete tte 90* valuó te «te «elite ie flftoeu
w « firo-t*anty-flrats (13
s/Xl)
graine te « e U taae-tertte (9/10) Ite,
taita te tte w»i$it of tao gol* dollar as ftete ly tea Prealdential
Proclaaation te íenaaty
Jl, »34.
'jzajff tettar te tte HURagteg Btroctor
•f tte Fata, I havo/stetad tata tte Baita« Stette Oovonawta d e m ata
teliate te is B M W » » y ta e sta r ita» S i m M i w tata «te te te concern*
teg atengo» la ta» par tela» of tte Otate* «tete» «ollar.
r| ¡ P
XtMr****’ i
TREAS U R Y DEPARTMENT
Washington
P O R RELEASE, F O R K I N G N E W S P A P E R S
Thursday, S e p t e m b e r 19, 1946
P r e s s S e r vice
ho « S -84
S e c r e t a r y S n y d e r t o d a y made the f o l lowing a n nouncement:
T h e . Managing 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
f u n d has r e q u e s t e d t he U n i t e d States, hy l e t t e r of
S e p t e m b e r 12, 1946, to a d v i s e the F u n d of t h e pa r v a l u e
of its currency.
As Chairman of the R 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 t a r y and F i n a n c i a l Problems, I hav e
today in f o r m e d the F u n d t h a t the p a r value of the dollar
is f i f teen and f i v e - t w e n t y - f i r s t s (15-5/21) grains of
g o l d nine - t e n t h s (9/ 1 0 ) fine, w h i c h is the w e i g h t of
■fche gol d d o l l a r as f i x e d
■ the P r e s i d e n t i a l P r o c l a m a t i o n
01
1934.
X
in m y l e tter to the M a n a g i n g D i r e c t o r of the Fund,
have also s t ated that the U n i t e d States G o v e r n m e n t does
n o t believe it is n e c e s s a r y to en er in' ;o discussions
w i t h the F u n d concerning changes in the p ar value 0
ne
U n i t e d States dollar.
letter follows:
My dear Mr, Gutt:
In r e p l y to y o u r l e t t e r of S e p t e m b e r 12, 1946,
w h i c h was received the same day, I h a v e the honor,
on b e h a l f of the U n i t e d States Government, to
i n f o r m the I n t e r n a t i o n a l M o n e t a r y F u n d that the.
par v a l u e of the dollar is f i f teen a n d f i v e - t w e n t y firsts (15-5/21) grains of gold n i n e - t e n t h s (9/10)
fine.
This par value,, based on t he rate of e x
change pre v a i l i n g on O c t o b e r 28, 1945, the
s i x t i e t h day b e f o r e the entry into f o rce of the
A r t i c l e s of A g r e e m e n t of the I n t e r n a t i o n a l
M o n e t a r y Fund, is i d e ntical w i t h the w e i g h t a n d
f i n eness of the U n i t e d ' S t a t e s dollar in effect
on J uly 1, 1944, r e f e r r e d to in A r t i c l e IV,
Se c t i o n 1, of the A r t i c l e s of A g r e e m e n t of the
I n t e r n a t i o n a l M o n e t a r y Fund.
The U n i t e d States G o v e r n m e n t desires tha t
t h e par value .here c o m m u n i c a t e d shall be the
par value of the dollar for the pu r p o s e s of the
F u n d as m e n t i o n e d in A r t i c l e XX, S e c t i o n 4(b).
This p a r value of the dollar is h e r e b y c o m m u n i
cated to the F u n d for all t e r r i t o r i e s a nd
poss e s s i o n s of the U n i t e d States,
«* 2 «*
The U n i t e d States G o v e r n m e n t does not
b e l i e v e that it i/vill be n e c e s s a r y to m ake a n y
s p e c i a l arran g e m e n t s f o r the disc u s s i o n of
the p a r value of the d o llar w i t h the Fund,
S i n c e r e l y yours,
/ s / John W, Snyd e r
S e c r e t a r y of the Treasury, a nd
Chairman, 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 t a r y a nd
F i n a n c i a l Problems,
Mr, C a m i l l e Gutt,
M a n a g i n g Director,
I n t e r n a t i o n a l M o n e t a r y Fund,
W a s h i n g t o n 6, D, C.
0O0
- 3 -
sold5 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 tetween 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. lj.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.
m a x
-
2
-
Immediately after the closing hour, tenders will be opened at the Federal
Reserve Banks and Branches, following which public announcement will be made
by the Secretary of the Treasury of the amount and price range of accepted
bids.
Those submitting tenders will be advised of the acceptance or rejection
thereof.
The Secretary of the Treasury expressly reserves the right to accept
or reject any or all tenders, in whole or in part, and his action in any such
respect shall be final.
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
September 26. 19ii6
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
[|.2 and 117 (a) (1) of the Internal Revenue Code, as amended by Section
1V~> 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
Hffl
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Friday, September 20,
-
m
19k6
"
The Secretary of the Treasury, by this public notice, invites tenders for
$ 1,300,000,000 , or thereabouts, of
jm
91 --day Treasury bills, to be issued
m
on a discount basis under competitive and fixed-price bidding as hereinafter
provided.
September 26 . 19L.6
The bills of this series vill be dated
—
Will
ou t
December 26, 19U6
mature
interest.
of $ 1 , 0 0 0 ,
Th e y w i l l be
$5,000,
$10,000,
3
w h e n the face
, and
—
a m o u n t Trill b e p a y a b l e w i t h -
i s s u e d i n b e a r e r f o r m only,
$100,000,
^
and in denominations
$ 5 0 0 , 000 , a n d $ 1 , 0 0 0 , 0 0 0
( m a t u r i t y value).
Tenders Trill be received at Federal Reserve Banks and Branches up to the
closing hour, two o ’clock p.m., Eastern Standard time, Monday, September 23, 19lj6.
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
EOR RELEASE, MORNING NEWSPAPERS,
Friday, September 20, 1946____
Press Service
No • S-85
The Secretary of the Treasury, by this public notice,
invites tenders for §1,300,000,000, or thereabouts, of 91r-day
Treasury bills, to be issued on a discount basis under compe
titive and fixed-price bidding as hereinafter provided. The
bills of this series will be dated September,26, 1946, and
will mature December 26, 1946, when the face amount will be
payable without interest. They will be issued in bearer form
only, and in denominations of §1,000, §3» 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, September 23, 1946. 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 oh the basis of 100, with not more
than three decimals, a. g., 99*9^5 * 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 incorpora
ted 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 guarantjr of payment by an
incorporated bank or trust companjr.
Immediately after the closing hour, tenders will be
opened at the Federal Reserve Banks and Branches, following
which public announcement will be made by the Secretary of
the Treasury of the amount and price range of accepted bids.
Those submitting tenders will be advised of the acceptance
or rejection thereof. The Secretary of the Treasury expressly
reserves the right to accept or reject any or all tenders, in
whole or in part, and his action in any such respect shall be
final. 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
September 26, 1946.
9
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) (1) of the Internal Revenue Code, as amended by
Section 115 of the Revenue Act of 1941, the amount of discount
at which 'bills issued hereunder are sold shall not be considered
to accrue until such bills shall be sold, redeemed or otherwise
disposed of, and such bills are excluded from consideration
as capital assets. Accordingly, the owner of Treasury bills
(other than life insurance companies) issued hereunder need
include in -his income tax return only the difference between
the. price paid for such bills, whether on original issue or
on subsequent purchase, and. the amount actually received either
upon sale or redemption at maturity during the taxable year
for which the return is made, as ordinary gain or loss.
Treasury Department Circular Ro. 418, as amended, and
this notice, prescribe the terms of the Treasury bills and
govern the conditions of their issue. Copies of the circular
may be obtained from any Federal Reserve Bank or Branch.
oOo
break our previous records of
product ion, of employment, and of
income»
We have always been willing to
accept any challenge to human
betterment, and we can succeed again
today because we possess the power
anci the philosophy, the confidence
and the patience*
We can go forward
I ' •/<rli-p^yir;"-V|Sf|
with hope and with full assurance, as
long as we continue to face the facts
White House would not stop doing
things; almost everyone says the
Government is terrible, but almost no
on© seriously suggests doing much of
anything about it except complaining;
and along you roll irrationally,
irrelevantly, and yet vastly more
prosperously and cheerfully than any
other people on earth.**
Yes, America will go forward
under its system of free enterprise,
which has written for us a great
history*
We will go forward and
^
m«
¿ i
m
"You have buyers’ strikes and
new sales records marching along
hand in hand; you break production
records while workers are breaking
records for striking; greater supplies
of almost everything and greater
shortages of everything tag right
along together; politically, you put in
most of your time complaining that
that fellow in the White House doesn’t
do anything while the last time i was
here you were as unanimously
complaining that that man in the
«* 21 m
lip w
srs all human.
But let me repeat
a story which throws a side-light upon
our American character*
According to one of our weekly
magazines a visitor from England who
hao just finished a four-month trip
across the United States was asked his
principal impression.
He replied!
’The United States remains the
only place on earth where everything
can be completely screwy and almost
everyone can still get along quite
well.
13
*•
Improve his own security.
| urge our
people to invest heavily in all sound
forms of saving and particularly in
the purchase of United States Savings
Bonds*
Clearly the most satisfactory
solution to the problem of balancing
supply and demand is to increase the
supply so that it can meet all comers.
That day will come.
And when it comes,
if w® have maintained our mass
purchasing power on a level comparable
to what it is today, our standard of
** 13 «*
most.
This would r e s t r a i n the bidding
up Of prices in those fields where we
have shortages.
This would lower
demand in critical fields so that our
ever increasing supply would sooner
watch that demand«
Just as every individual should
00 a11 in
power to cut down
purchases of scarce items so he should
put all the money he can into
United States Savings Bonds,
This will
help to meet the present problem of
inflation and the individual will thus
in the course of cutting down
expenditures, I should Ilk© to think
that the Government Is setting an
example that will be followed by
•¥®ry Individual throughout our land*
I should like to think that every
Individual will do everything within
his power at once to curtail his own
(
*/
expenditures for goods in scarce
supply.
This would be a gigantic
effort and it would have gigantic
results,
This would be curtailing the
inflationary pressure” where it counted
16
much better in actual results than
most people expected«
For ray part, i pledge to do all
"V
in my power to make our record better
and better in the future»
Our President
in his sound and capable leadership
has set for us a program to reduce
federal expenditures immediatelyr to
balance the budget as soon as possible,
and to lower the Public Debt whenever
possible.
This is a program that
affords an encouraging atmosfphere to
our American system of individual
enterpr ise»
,
- 14
a result of these and other items,
there will be what we may call a cash I
4
I r Cl
operating surplus of almost 3 > M M i -onThe noncash items will, of
course, have to be paid at some date,
iut it is helpful that they do not
involve cash outlays to the public at
this time«
This, of course, is
a contribution to the battle against
inflation*
While none of us likes the
prospective budget deficit o
b-HHH-ftn— rtnl 1 arw? it is a great
f
rri)
til
nono a so ®xpi
tre ar© cer ■
--nr—iint-nnm»
m „iiTS^juo
IS
term inal leave pay •« that is, o
2) hi 11 ion citrillar& of it -» will
-
11
the budget is doing its part#
Decreased expenditures mean lessened
demand on goods in short supply#
President Truman emphasized
recently that the executive branch
must cut its expenditures even below
toe amounts already authorized by
the Congress#
This is a very important
contribution to combating inflation
which the Qovernment can make today#
''J. '
expenditures should be out es
sharply as Is compatible with rendering
the necessary governmental services and
«* 1 0
«*
of the Government to achieve a balanced
budget —
or better —
for 1947»
Whether or not a balanced budget for
1947 Is possible has yet to be shown*
But the administration is bending
©very effort toward this end.
We have reached the point in our
battle against inflation where, I am
convinced, we must emphasize more and
more the long term solution of bringing
supply and demand into better balance*
The Government in its program of
reducing expenditures and balancing
¡jgH jj
«¡¿¡¡to
coalmen good our present tax levels
must be maintained for some time.
This
is necessary to achieve a balanced
budget and a surplus to be used to
reduce the public debt.
I know you
will agree that the debt should be cut
as much as possible in exceptionally
prosperous times such as these.
Now the 6overnment*s first
responsibility, definitely, is the
balancing of the budget.
When I took
office as Secretary of the Treasury,
1 stated that it was the responsibility
............
»
..... I
v
8
Here Is what the Government
itself is doing in the battle against
inflation.
expenses*
First, we are curtailing
Second, we art urging the
holding of the present tax line in
order to create a Government surplus
'tU
to pay off.public debt•
As far as taxes are concerned,
of course, the Treasury’s part is to
make recommendat ions*
legislate the tax laws*
Congress will
i believe,
and t think that the Congress and the
American people believe, that for our
«*
J
'
m
One of the chief ways by which
we fought inflation during the war
and thus far during reconversion, was
by direct restraint on prices through
governmental regulations.
This is
desirable only for a period when^due
to exceptional circumstancesl such as
the war, the law of supply and demand
does not work.
We must continue the
direct regulation of prices a little
while longer.
That is because supply
and demand are sti11 out of balance in
some commodities.
¡1
h
I
«*
t 18v© 1.s in historyt
II18 limited supply
in the face
of an increased demand, moreover, was
accumulative.
Today, we find that our
people are ready to replace worn out
gooes and are ready to make original
purchases, and have the wherewithal to
d0
8ut ««eh of the time they find
that many of the goods they seek are
not availaale,
This enormous demand
coming against the severely limited
supply creates the " inflationary
pressure**.
#
5
m
combined actions and contributions of
each citizen, each organization, and
the government.
Upon aJJL the
responsibility falls, and the result
»ill be shared by all alike.
Our ing the war, a tremendous gap
between the supply of consumer goods
and the demand for such products was
created.
The necessities of
the war always cams first.
Msanwhile,
a larger demand than ever before was
created as our income payments to war
workers and others attained the
i
the war years*
The future well-being of our
nation, and therefore of all nations,
will depend upon the course of action
adopted by this country in dealing
with our economic problems and in the
handl,ing of our political internetional
t: '
relationships*
Success or failure will not be
due to Sovernment, business, labor.
or
other group acting individually
any more than was winning the war#
The outcome will result from the
2
Of the world,
us —
A special burden is on
and a special privilege.
At the
moment American fiscal affairs are
healthy and strong.
outiook is good.
Our economic
This will remain
true provided we heed our opportun ¡ t i e s
As we will.
For if the Sovernment acts
with courage and intelligence —
intends to do —
cooperate —
as it
and the people
we shall be able to tackle
those urgent problems that Inevitably
face nations in the period of
readjustment after war.
An Address by the Secretary of the Treasury
krepered for Delivery at the Execu tives^
Club of Milwaukee, Wisconsin.
September 23, 1946
I am happy to be in Milwaukee.
Your city -- and your state
focal points of the mid«west.
They
have contributed their full share to
the well-being of this country,
it
is fitting, therefore, that i talk
to you about some of our national
problems.
Here in the heart of this land,
it is well to remember that as America
goes economically so goes the rest
TREASURY DEPARTMENT
Washington
(The following address b y S e c r e t a r y Snyd e r
b e f o r e the E x e c u t i v e s 1 Club of M i l w a u k e e , at
the Plan k i n t o n Hotel, M ilwaukee, W i s c onsin,
is scheduled for d e l i v e r y at 9 ; 0 0 P . M . ,' C . S . T .,
on S e p t e m b e r 2 5, 1946» and is for r e l ease at
that time.)
I am h a p p y to be in M i l w a u k e e .
Y o u r city - and your state
are focal points of the m i d - w e s t .
T h e y have c o n t r i b u t e d their
full share to the w e l l - b e i n g o f this country.
It is fitting,
therefore, that I talk to y o u a b o u t some o f - o u r n a t i o n a l p r o b
lems .
Here in the h e art of this land, it is w ell to remem b e r
that as A m e r i c a goes e c o n o m i c a l l y so goes the rest of the
world.
A special b u r d e n is on us - and a special privilege.
At the m o m e n t A m e r i c a n fiscal a f f airs are h e a l t h y and strong.
Our e c o n o m i c outlook is g o o d • This will r e m a i n true p r o vided
we heed our op p o r t u n i t i e s .
As we will.
For if the G o v e r n
m e n t acts, w i t h courage a n d i n t e l l i g e n c e - as It intends to do and the people cooperate - we shall b e able to tackle those
urgent p r o blems that i n e v i t a b l y face n a t i o n s in the p e r i o d of
r e a d j ustment a f t e r war-.
It requires a great deal of courage a n d spirit to face
the m a n y tasks that confront us today.
A f t e r all of the
troubles and problems of the past few years, it w o u l d seem
o n l y r e a s o n a b l e that we be a l l o w e d time for r e a d j u s t m e n t a n d
to reflect u n o n o u r future course of action.
B u t w i t h the
g r e a t a c c e l e r a t i o n of w o rld affairs, we have not b e e n p e r
m i t t e d any b r e a t h i n g spell w h a t s o e v e r .
I n s t e a d our problems
are p r o b a b l y more n u m e r o u s even than t hey were d u r i n g the
w ar years.
The future w e l l - b e i n g of o u r nation, a nd therefore of all
nations, will d e p e n d u pon the course of action a d o p t e d by this
c o u ntry in d e a ling w i t h our economic problems and in the
h a n d l i n g of o ur politic al i n t e r n a t i o n a l r e l a t i o n s h i p s .
Success or failure will not be due to Government, business,
labor, or a ny other g r o u p acting i n d i v i d u a l l y any more than was
w i n n i n g the war.
The outcome w ill r e s u l t f r o m the combined
a c t i o n s and c o n t r i b u t i o n s of each, citizen, e a c h organization,
and the G overnment.
U p o n all the r e s p o n s i b i l i t y falls, and the
result will be shared by all alike.
S -8 6
2
D u r i n g the war, a t r e m e n d o u s gap b e t w e e n the s u p p l y of
consumer goods and the d e m a n d .for such pro d u c t s was created.
'The n e c e s s i t i e s of w i n n i n g the w a r always came first.
Mean
while, a l a r g e r demand than e v e r b e f o r e was created as our
income p a y m e n t s to w ar w o r k e r s and others a t t a i n e d the h i g h
est levels in history*
This li m i t e d supply in the face of an i n c r e a s e d demand,
moreover, was a c c u m ulative.
Today, we find that our people
are ready to replace w o r n out goods and are r e a d y to m a k e
original purchases, and have the w h e r e w i t h a l to do It.
B ut
m u c h of the time they find that m a n y of the goods they seek
are n o t available.
This enormous demand c o m i n g a g a i n s t the
severely l i mited s u p p l y creates the " i n f l a t i o n a r y pressure".
One of the c h ief w a y s b y w h i c h we fought inf l a t i o n d u r i n g
the w a r and thus far d u r i n g reconv e r s i o n , was b y d i rect re
straint on prices th r o u g h g o v e r n m e n t a l r e g u lations.
This is
d e s irable o n l y for a period when, due to e x c e p t i o n a l c i r c u m
stances, such as the war, the law of supply and demand does
not work.
We must continue the d i r e c t r e g u l a t i o n of prices
a little w h i l e longer.'
That is be c a u s e supply and d e mand are
still out of b a l a n c e in some c ommodities.
Here Is what the G o v e r n m e n t itse l f is d o i n g In the b a t t l e
against Inflation.
hirst, w e are c u r t a i l i n g expenses. Second,
we are u r g i n g the h o l d i n g of the p r e s e n t tax line in order to
create a Gov e r n m e n t surplus to p a y off the p u b l i c debt.
As far as taxes are concerned, of course, the T r e a s u r y ’s
part is to make r e c o m m e n d a t i o n s .
Con g r e s s will l e g i s l a t e the
tax laws.
I believe, and I think that the C o n g r e s s . a n d the
A m e r i c a n people believe, that for our common g o o d our p r e s e n t
tax. levels must be m a i n t a i n e d for some time.
This isnnecess^ry to a c h ieve a b a l a n c e d b u d g e t and a surplus to be u sed to
reduce the public debt.
I know y o u will agree that the debt*'
s h o u l d be cut as m u c h as possible in e x c e p t i o n a l l y pros p e r o u s
times such as these.
N o w the G o v e r n m e n t ’s first r e s p o n s i b i l i t y , definitely,
is the b a l a n c i n g of the budget.
W h e n I took office as
S e c r e t a r y of the Treasury, I stated that it was the r e s p o n
sib i l i t y of the G o v e r n m e n t to a c h i e v e a b a l a n c e d b u d g e t or b e tter - for 1947.
W h e t h e r or not a b a l a n c e d b u d g e t for
1947 Is possible has yet to, be shown.
But the A d m i n i s t r a t i o n
is b e n d i n g e v e r y e f f o r t toward this end.
S -8 6
5
W e have reached the point in our battle against inflation
where, I a m convinced, we must emp h a s i z e m ore and m ore the
long te r m s o l u t i o n of b r i n g i n g s u p p l y and d e m a n d into b e t t e r
balance.
The G o v e r n m e n t in its p r o g r a m of r e d u c i n g e x p e n d i
tures and b a l a n c i n g the budget is d o i n g its part.
Decreased
e x p e n d i t u r e s mean l e s sened d e m a n d on g o ods in short supply.
President T r u m a n e m p h a s i z e d r e c e n t l y that the e x e c utive
b r a n c h mus t cut its expen d i t u r e s even b e l o w the amounts a l
ready a u t h o r i z e d by the Congress.
This is a v e r y important
c ontribution to c o m b a t i n g i n f l a t i o n w h i c h the G o v e r n m e n t can
make today .
E x p e n d i t u r e s should be cut as s h a r p l y as is compatible
w i t h r e n d e r i n g the n e c e s s a r y g o v e r n m e n t a l services and m a i n
taining our n a t ional security.
E a r l y in August, the P r e s i d e n t re l e a s e d r e v i s e d b u d g e t
estimates for the fiscal year 1947, e s t i m a t i n g the b u d g e t d e
ficit at $ 1 , 9 0 0 , 0 0 0 , 0 0 0 .
C o n s i d e r i n g that there are certain
n o n c a s h e x p e n d i t u r e s i n c luded in the budget, the Government,
in current cash transactions, will take in more m o n e y this
year than it w i l l spend.
Thus, for example, most of the t e r minal leave pa y - that
is, over $-2 ,0 0 0 ,0 0 0 ,0 0 0 o f it - will not be p a i d in cash, but
rather in terminal leave bonds.
Also, the interest accruing
on savings bonds, w h i c h amounts to about $ 7 0 0 , 0 0 0 , 0 0 0 for the
fiscal year, is t r e a t e d as a b u d g e t a r y e x p e n d i t u r e .
But it
will a c t u a l l y go to increase the value of the bonds, and will
not be paid out in cash until the b o nds are redeemed.
Also,
interest earn e d by G o v e r n m e n t trust funds - which, in the a g
gregate, amounts to a b o u t $ 6 0 0 , 0 0 0 , 0 0 0 r e p r esents a n o n c a s h
transaction.
As a r e s u l t of these and other items, there will
be what we m a y call a cash o p e r a t i n g surplus of almost
$3,000,000,000.
The n o n c a s h items will, of course, have to be
paid at some date.
But it is h e l p f u l that they do not involve
cash outlays to the p u b l i c at this time.
This, of course, is,
a c o n t r i b u t i o n to the battle a g a inst inflation.
While none o f us likes the p r o s p e c t i v e b u d g e t d e f icit of
$1, 9 0 0 , 0 0 0 , 0 0 0 , it is a g r eat i m p r o v e m e n t ove r the estimates
made last January.
At that time the d e f i c i t was est i m a t e d at
$4,500,000,000.
M a n y of us had h o p e d that the improvement,
would be even greater.
B u t w h a t a t r e m e n d o u s change it is
from the d e f i c i t of $ 2 1 ,0 0 0 ,0 0 0 ,0 0 0 in the fiscal y e a r w h i c h
just closed and the d e f i c i t o f $ 5 4 , 0 0 0 , 0 0 0 , 0 0 0 in fiscal yea r
1945.
N a t u rally, there should h a v e b e e n an improvement.
For
the war, as far as the gunfire is concerned, is over.
But we
have d o n e m u c h b e t t e r in actual results than most people
expected.
S -8 6
4
For m y part, I p l edge to do all in m y p o w e r to make our
record b e t t e r and b e t t e r in the future.
Our P r e s i d e n t in his
sound and capable l e a d e r s h i p has set for us a p r o g r a m to r e
duce F e d eral e x p e n d i t u r e s immediately, to b a l a n c e the b u d g e t
as soon as possible, a n d to lower the public 'debt w h e n e v e r
possible.
This is a p r o g r a m that affords an e n c o u r a g i n g a t
mosph e r e to o u r A m e rican s y s t e m of i n d i vidual enterprise.
In the course of c u t t i n g d o w n e x p e n ditures, I should
like to t h i n k that the G o v e r n m e n t is s e t t i n g an example that
will be follo w e d by every individual t h r o u g h o u t o ur land.
I
should like to think that e v e r y ind i v i d u a l w ill do e v e r y t h i n g
with i n his power at once to curtail his own e x p e n d i t u r e s for
goods in scarce supply.
This w o uld be a g i g a n t i c effort a nd
it w o u l d have g i g a n t i c results.
This w o u l d be c u r t ailing the
" I n f l a t i o n a r y pressure" where it c o u n t e d most.
This would
restrain the b i d d i n g up of prices in those fields where we
have shortages.
This w o uld l o w e r d e m a n d in critical fields
so that o u r ever increasing s u p p l y w o u l d s o o n e r m a t c h that
demand.
Just as every indi v i d u a l should do all in his p o w e r to
cut down p u r c h a s e s of scarce items so he should put all the
m o n e y he c an into U n i t e d States S a v ings Bonds.
This will
help to m e e t the present p r o b l e m o f I n f l a t i o n a nd the i n d i
vidual will thus improve h i s own security.
I urge our people
to invest h e a v i l y in all sound forms of saving and p a r t i c u
larly in the pu r c h a s e o f U n i t e d Stat e s Sa v i n g s Bonds.
Cle arly the m ost s a t i s f a c t o r y s o l u t i o n to the p r o b l e m
of bal a n c i n g s u p p l y and d e m a n d is to increase the s u pply so
that it can m e e t all comers.
That d a y will come.
And w h e n
it comes, if we h a v e m a i n t a i n e d o u r mas s p u r c h a s i n g p o wer on
a level c o m p a r a b l e to wha t it is today, o u r s t a ndard of l i v
ing will be m u c h b e t t e r than any we h a v e e v e r had.
Due c h i e f l y to the v i t a l i t y of o ur s y s t e m o f ‘ f r e e .e n t e r
prise, we have m a d e a suc c e s s f u l t r a n s i t i o n f r o m the ending
of the shooting w ar to the b e g i n n i n g of the peace.
Looking
back over the r e c e n t months, I am sure that we will find we
have done the job w e l l - despite the m a n y crises.
We do not p r o m i s e y ou an e c o nomic Utopia.
M i s t a k e s have
been mad e and- will continue to be m a d e - since we are all h u m a n
But let me r e peat a story w h i c h throws a s i d e - l i g h t u pon our
Ame r i c a n character.
S -8 6
5
A c c o r d i n g to one of o ur w e e k l y m a g a z i n e s a visitor fro m
En g l a n d who had just fi n i s h e d a f o u r - m o n t h trip across the
United States was asked his p r i ncipal impression.
He replied:
"The U n i t e d States r e mains the onl y p l ace on e a r t h where
everything can be c o m p l e t e l y s c r e w y a nd almost e v e r y o n e can
still get along quite well,
"You have b u y e r s ’ strikes and n e w sales records m a r c h i n g
along h and in h a n d ; you b r e a k p r o d u c t i o n records while w o r k
ers are b r e a k i n g records for striking; g r e a t e r supplies of
almost e v e r y t h i n g and g r e a t e r shortages o f e v e r y t h i n g tag
right along together; politically, y o u put in m o s t o f y o u r
time c o m p l a i n i n g that that fellow in the W h i t e H o use d o e s n ’t
do anything, while the last time I was here you were as u n a n i
m o usly c o m p l a i n i n g that that m a n in the 'White H o u s e w o uld n ot
stop d o i n g things; almost everyone says the G o v e r n m e n t is
terrible, but almost no one ser i o u s l y suggests d o i n g m u c h of
anything a b o u t it e x c e p t complaining; and a l ong y o u roll i r
rationally, irrelevantly, and yet v a s t l y m o r e p r o s p e r o u s l y
and. c h e e r f u l l y /than any o t h e r people o n ' e arth."
Yes, A m e r i c a will go forward u n d e r its s y s t e m o f free
enterprise, w h i c h has w r i t t e n for us a g r e a t history.
W e will
go forward and b r e a k our p r e v i o u s records of production, o f
employment, a nd of income.
We h a v e always b e e n w i l l i n g to a c c e p t a ny c h a llenge to
h u m a n b e t t e r m e n t , and we can succeed a g ain today be c a u s e we
possess the p o w e r and the philosophy, the con f i d e n c e and the
patience.
We can go forward w i t h hope and w i t h full a s s u r
ance, as long as we continue to face the facts.
0O0
S -8 6
heritage of accomplishment, of achieve«
over adversity
¿ H E
w jt n
¡lot because the- path is
easy, but because we as Americans have
thrived a
i
**
4» Is
r |ve under conditions,
that call for extra effort and
effort on the part of all of us*
i appreciate the opportunity to
speak to you today.
Again, I §jetend
the sincere thanks of the Treasury
Department for the cooperation which
kaate
miatai
m
liitl
tin is conf idence.
In closing, there is one though
! w ould leave with you
so general
in its nature as to be applicable, not
1
4.
to the problems discussed with
you today, but also to any problem
nt in the formulation of a s
public poli
it is -
11 our
problems can best be met if we
r ic
or us, rememoeri
our
s reaction to th
h ighe r ra tes might be "wait and see,"
rathe r th an T,run and invest."
The stability of the bond market
s ince the end of the \far has eased the
f inane ial problems of recohversion
?*3g^
firms. The stability of the
bond mar
eminent
results in a degree of
business confidence which is of
tremendous va] e In
leving an
jaintaining full production.
J
lie U nites to the conf idsnee of
WWi
•tH'twummip......
col
feoth for the Government and for busings
39
t of]
na rv fc
it is
ora
-VJ1 1 that, for the
, no an I» f
i-an.arv aurp.os
would gy§ served by \noreas ina intarest
wnmmgm
rates.
This is because it would
interfere with the stability of the
Government bond market and would
introduce uncertainties, which
themselves might contribute to inflation.!
The immediate effect of higher interest
rates might very well be to increase,
rather than to decreaset the ||olum8 of
currency and deposits*
This is because
** 38 *
volume of funds which would otherwise
l
have been spent, and is helping to
achieve a ftroader distribution of the
public debt.
S U M
I urge your continued
of the sav in
Ski
y ir ci!
of the qavroil
Í
ÑI €£
W . w
jüü,
a
Á
n fLS
,E;
efforts of the say.i
ft
r
through the
to
Q jS
Ser
*
Let us turn now for a moment to the
rates.
It is
times urged that hi
rates would aid in the
of
r
/
promote an all-out bond selling campaign
1 1 ica the War Loans or the Victory Loan«/
It is possible, however, to do a
day-to-day job selling bonds in order
to maintain and extend the payroll
savings plan and to sell the American
people on the idea of investing in
savings bonds for their own good«
Savings bond promotion actually is
doing this.
Sa leu, t M s
mm&M
«
i
......................................
fiPCj eUP; »o~o
will be abou
the oresent rate of sale continues.
This program is absorbing a considerably
¿g
35
On the question of the short-term
debt, I wonder if you know the extent
of the Treasury*s program of debt
reduction in recent months.
il 8L
From
It
ÌM.
Treasury deduced the public debt bv
ahout# 1 •±
4j.fati1 1 Itm Ju
as a result
of the heavy pay-offs made on maturiti @s
of marketable securities each month
niffiffif)ffff*
>
1
¥*v>irt^cia
Preliminary figures indicate that
coffl-iierci al banks and Federal Reserve
Banks reduced their holdings of Federal
securities by about seven-eighths of
savings bonds, which were designed to
avoid the risks of market fluctuations
which proved so disastrous to the small
holder of bonds after World War 1%
t•; ;
■-s " *,
/‘
?*'
•* ■ ■
i
Accordingly, this tailoring of
securities to meet investors' needs
sets the maturity structure almost
automatically; and has resulted in
a substantial volume of short-term
securities*
It may be noted in passing
that the same idea was followed by the
Sritish and Canadian Governments in
their war financing*
-|33,*
four-fifths of United States Government
security holdings are either presentable
on demand or fall due within one year,
A ••
-..
■'•■ ■■■:
•
f
In oohtrast, longer-term securities
are designed for long-term savings
investors, such as insurance companies,
savings banks, and individuals.
Three-fourths of the Federal securities
held by insurance companies and savings
banks are not due or callable for more
than ten years*
In the case of
individuals, more than two-thirds of
United States securities held are
gt»
secur¡ties
in fact, hold twice as
tote
many as all life insurance companies
and mutual savings banks combined.
m
liOW M iW M i'lW
So, it is no wonder that the
management of the public debt involves
many issues.
No wonder that there are
many ideas as to what should be done.
Frank discussion of these ideas
competition among them for survival
is a healthy manifestation of the
democratic process in operation
if
One aspect of public debt
management which is frequently
30
securities
now one of their largest
-f !v
of the total
8W&
s of all Jr
gommerei al banks
are in
ü -S.6-Qor it iss . For
mutual savings banks, Federal securit §t£s
constitute nearly two-thirds o£ all
rnrnmmm
Si
&od for insurance companies 9
US
H^üü^
ülâ n a t i,g Js almost
alt.
me*
For
nonfinancial cor pgr at io n sfe about
a m z ì m U L
i
è te I
w
1 liquidtsass
consist
3l E M eral securities.
Individuals
also hold a large volume of United States
in----the
tax f ield. 11 j s the role
...-1
'vr
of the Treasury to make recommendat ions.
What
Is,» e H I it s ¡¡f it
i!m
a t te a n a a t
Let us turn now to the management
of the public debt.
I use the term
in an economic Sense, rather than in
a narrow, bookkeeping sense.
The public debt today is so big
that it dwarfs all other debts in
comparison.
This debt is of vital
significance to banks - - a n d other
investors, too -- because Government
good our present tax levels must lyt
maintained for soma 11me•
Tilis is
inescapable if we ar«r to achieve
a balanced budget and ^4 surplus to |e
used to reduce the public debt.
I know
you will agree that the debt should be
cut as much as possible in exceptionally
prosperous times such as these; and,
as bankers, you will agree also,
i think, that, jj,
ja t jr j ,
fant,aj&,
X» ¿2. talk of tax
H
_.,r
js .
*
.. .I
and debt reduction in the
same breath
if;
run at a high level*
As a result of
the rapid reconvers ioh from war to
peacetime production, our net receipts
in this fiscal year are estimated at
almost¥40
o
n
X
y
a
^
i-1liew-ttoH’tc.ra. This is
f
f
i
^
^
X
-
s
.
tHan
the peak collections reached during
the war*
;
The maintenance of the oeisent
level of taxes has serv eti |j, reduce thâ
d e f ic it sharalvI
I believe, and I think
that the Congress and the American
people believe, that for our common
without impairing our national security
i certainly want a s
inly S É not want to repeat the
mistake we
war.
after the first worl
But I do want to emphasize that
the size of this group of expenditures
singles it out for special attention
in looking for areas in which to reduce
expenditures -- keeping Jn,mind, „of
course, thfl budgetary considerations
t_..— ,~,—
must
—
g
bs
econdary
-r t —
_.r—
^
^ ^j
„ - _ : r, j ,
in the déterminât ion
of our needs for wat j al defense.
Let me assure you that there is
M
§ M i a this country more anxiom
is no doubt that these are wise outlays
in the interest of our international
responsibiliti es*
r
The new estimate for National
defense for this fiscal year i a ^ l 8 . 5 ^ ^
trrar
"■art*
in a total budget of
41.5 b-Hbi ftfJl
The January
i,
budget estimate was aboufc$15
iiuJ
There are two principal
reasons for the increase.
One of these
is the payment of terminal leave to
enlisted men **«* amounting to nearly
mm
and, while this Is a lot of money, there
22
little prospect of any substantial
reduction in these expenditures since
they represent commitments already made
accordance
Expenditures for international
,
f,nance are
doXla.c s»
at> 2
0 e>t ceO/oo'D
| g | j
These expenditures are
investments for the most part, but
p;!Xx
the figure does not make any allowance
for future repayments and recoveries*
International finance represents
about 10 percent of total expenditures;
21
pre&ent fiscal year*
This includes the
badly needed Housing program.
/
/
/ /
t\/ One of the larger areas of
rf
yJr
Qovsrnment expenditures is that
composed of interest on the public
debt, refunds of taxes, and veterans1
benefits*
Expenditures for these
QOO, 03
0O D
purposes are estimated It# lip b Iili~on
this *year*
/
This is made up
of interest on
V
0t>, o?2>
v
the public detgt,f 6,2 a-ftl-i-^n -dollars
600,0 ov
of veterans* benefits,
and$l
i
^reiiairs of tax refunds • There is
20
around 5 percent of all Federal
expenditures,
We want, of course, to
reduce these expenses as much as
possible, but obviously any cuts large
enough to have any significant effect
must come elsewhere,
Public Works is an area in which
cuts in expenditures are often urged
during times of inflationary pressures.
This counsel is sound, but total
Federal expenditures for nonmilitary
Public Works are estimated at only
a little over 1 billion dollars for the
19
released ne
civilian employees si
m
one a îil I
M
have done this M
wkwi
lent in the land or hurt in
the
uct of
f*
ment business.
It is worth noting, too, for the sake
of realism, that total Federal
expenditures for the operation of the
Legislative and Judicial branches and
for administration of the Executive
Branch aside from military and
veterans activities is about 2 billion
dollars for the fiscal year 1947 or
•
1 8
«*
Sovernment spending by such end such'
i*\
percent right across the board*
They
never get very specific about
it*f But
~
*
a MtiifmrlM Iiak ,Uli I M i would create
EftCJ. ..tf-A.y.b.l.©,s than it would solve*
It
was recently suggested, for example,
that no less than two million persons
be fired from the Federal pay roll -- m
- 15
fu n d s —
Sip
which, in the aggregate
amounts to about^GQu
dollars -- represents a noncash
transaction*
•
As a result of these
and other items, there will be what
we may call a cash operating surplus
#p % o o
|§ o ® ® '
H I
|
.
of almost/3
jJgj
I
M
The noncash items have to be paid
when d u e , b.u..t. it Is
is. m l
m$h
11® none of us likes the
prospect i vs budget clef Ic i t of<#l*9;*
°od
■m
for balano ina
r\mtmm. th
IS
wrTìiiwnidnmkim
The other is the public debt
and the problems of managing It
These subjects are interrelated and,
in fact, on© common policy should be
the rule for bath
In the present economic
environment, th® Federal government
M
®v _
lift
X ift
W Ä W ie B ^ 6 8 » iW Ä S & m g ^ s ^
wSwÌwiiSw
f i s c a l .f...r.an..t.. M
h UÙIÌB
I
•
Setter yet, it should strive
to achieve a substantial surplus of
taxes over expend it tires tb apply to
so successful that our levels of
production, income, and employment are
all closely comparable to the high
levels we reached during total-war*
It was no small part that the
bankers played in this rapid and
successful reconversion*
If this
spirit and this performance can
continue, it will ease materially the
difficult problems that all of us still
must face*
about two important subjects*
On® of
9
tlis war*
It Is a great benefit to the
Treasury to have tax collections paid
through deposits In local banks*
i#i| as for the terminal leave
bonds which will soon be In the hands
of 13 million veterans of the war*
You
know that there will be a lot of
problems Involved*
One of them will
concern redemption facilities*
We
shall need your help in this connection
M MM, counting M M B U teflnfcftCa M
Stats organ 1zations in the present
savings bond sales program, just as
they were in the days of the war loans.
Many large industrial corporations
have continued the payroll savings plan
into the postwar period primarily
because of the influence, economic
vision, and public spirttedness of the
bankers on its board of directors*
Î want you to know that this
cooperation is deeply appreciated in
the Treasury.
Indeed, it seems to it#
a condition indispensable to the
g®tting ub a special system of banking
for handling ration coupons contributed
In no small measure to the ability of
the Government to carry through its
vast program of wartime rationing»
This cooperation of the banking
system with the Government £s
continuing, in the postwar per tod»
Almost every aank has a sales desk
for United States savings bonds» which
is manned by bank employees at no cost
to the Government?«
Bankers are
heavily represented throughout the
to Illustrate how well it has worked*
During the war, the banks threw
themselves wholeheartedly into the
sale of United States securities.
They gave generously of the time of
the ir executives and their staffs and
their facilities in the war loan
campaigns and in the continuous sale
of savings bonds.
They cooperated with
industrial corporations in the
establishment and maintenance of
payroll savings plans*
In addition,
the magnificent job which they did in
Si8ftt IfìgS DIVI
m
I
li®cl ai
t*k
«9
fftflf
w m ts
Ì CI © Ut S
confIrwod ay
•f*«L.
conv iet i
llPvi
é3S,
j
W
?®:
* .
m
#S
¿a iniCl
|
W»Im Ii1?
fì 1
consider
finaneì
t h e
point
of the whole people*
of the
federal Loan I fatinistrator, as
Director of War Mobilizati on and
Reconversion and as Secretary of the
Treasury since ay appointment to that
office*
During the past two months, in
particular, 1 have net with the
I
Committee on Government Borrowing and
the Savings Bond Committee of your
Association, and with groups
representing the savings banks, the
insurance companies, and other types
of financial instI tut ions*
Those
Speech to he given by the
Secretcry of the Treesury before the
/imerlcisn Bankers Assocletlon at Cblcego, Illinois
Tuesday, Sept em ber 24, 1846
It Is a genuine pleasure for me
to be here today to talk with the
bankers of America*
I feel mys&lf to
be among colleagues and, if I may say
so, among friends*
This is by no means
the first meeting of the American
Bankers Association I have been
privileged to attend«
But it is the
first i have been privileged to
address in an official capacity as
Secretary of the Treasury*
\
TREASURY DEPARTMENT
Washington’
(The following address by Secretary Snyder
before the American Bankers Association,
at the Stevens Hotel, Chicago, Illinois,
is scheduled for delivery at 10:50 A. M » ,
C.D.T.,, Tuesday, September 24, 1946, and
is for release at that ti m e .)
.It is a genuine pleasure for me to be here today to talk
with the bankers of America,
I feel myself to be among col
leagues and, if I may say so, among friends.
This is by no
means the first meeting of the American Bankers Association
I. have been privileged to attend.
But it is the first I have
been privileged to address in an official capacity as
Secretary of the Treasury.
I welcome this opportunity for two reasons:
First, I
want to thank the bankers for the magnificent service-they
have rendered the country; and, second, I want to talk about
some important matters that are of mutual interest.
On the first score, this meeting seems a .fitting occasion
for me to express again my personal appreciation for the help
and cooperation which I have received from the banking profes
sion, during my tours of duty as Federal Loan Administrator,
as Director of War Mobilization and Reconversion, and as
Secretary of the Treasury since my appointment to that office.
During the past two months, in particular, I have met
with the Committee on Government Borrowing and the Savings
Bond Committee of your'Association, and with groups repre
senting the savings'banks, the insurance companies, and
other types of financial institutions.
These meetings have
provided an opportunity for a frank interchange of ideas.
They have again confirmed my long-held conviction that the
financial community is able and willing to look beyond its
immediate self-interest, and to consider the financial prob
lems.- of the country from the point of view of the well
being of the whole people.
The tradition of cooperation between the banking system
and the Treasury is one of long standing.
But I need go back
no further than the war to illustrate how well it has worked.
S-87
)
During the war, the banks threw themselves wholeheartedly
into the sale of United States securities.
They gave gener*ou sly of the time of their executives and their staffs and
their facilities in the war loan campaigns and in the continu
ous sale
of savings bonds.
They cooperated with industrial
corporations in the establishment and maintenance of payroll
savings plans.
In addition, the magnificent job which they
did in setting, up a special system of banking for handling
ration coupons, contributed in no small measure to the ability
of the Government to carry through its vast- program of war
time rationing.
This cooperation of the banking system with the Govern
ment is continuing in the postwar period.
Almost every bank
has a sales desk for United States savings bonds, which is
manned by,bank employees at no cost to the Government.
Bankers are heavily represented throughout the state organiz
ations in the present savings bond sales program, just as
they were in the days of the w a r loans.
Many large industrial
corporations have continued-the payroll savings plan into the
postwar period primarily because of the influence, economic
vision, and public spiritedness of the bankers on its board
of directors.
I want you to know that this cooperation, is deeply
appreciated in. the Treasury.
Indeed, it seems to me a con
dition indispensable to the economic health of the Nation.
The Government’s need of assistance from the banks has cer
tainly not ended with the termination of the war.
You know
the magnitude of the fiscal problems 'which still confront us.
We shall continue to need your help in solving these problems.
You knowr the immense difficulties of collecting a large vol
ume of taxes.
I am sure we shall continue to need, for a
considerable period of. time, the tax depositary facilities
you have nrovided us during the war.
It is a great benefit
to the Treasury to have tax collections paid through deposits
in local banks.
Now, as for. the terminal leave bonds which will soon be
In the.hands of 13 million veterans of the war.
You know
that there will be a lot of problems involved.
One of them
will concern redemption facilities. We'shall need your help
in this connection.
We are counting upon you bankers to
provide our veterans with the same fine service on their
terminal leave bonds when they mature as you are now offering
them on the billions o f ’dollars of savings bonds they own.
S-87
3
-
All of this is, of course, in .addition to the work that
you are doing for Us on savings bonds which is so important
to the success of that program.
Just a little over a year ago we celebrated the. end of
the war.
Today we have largely converted from the ways of
war to the ways of peace and this conversion has been so
rapid and so successful that our levels of production, income,
and employment are all closely comparable to the high levels
we reached during total war.
It was no small part that the bankers played in this
rapid and successful reconversion.
If this spirit and this
performance can continue, it will ease, materially the diffi
cult problems-that all of us still must face.
I want to speak to you today about two important sub jects.
One of these is the need for balancing the budget.
The other
is the' public debt and; the problems of managing i t . These
subjects are interrelated and, in fact7 one common policy
should be the rule for both.
*
In the present economic environment, the Federal Govern
ment should direct its primary effort on the fiscal front to
achieving a balanced budget.
Better yet', it sh ould strive to
achieve a substantial surplus of taxes over expenditures to
apply to debt reduction. These are the views x expressed thè
first day’ I entered the Treasury’
; and they have the full sup
port of the President.
.
Early in August, the .President released revised budget
estimates for the fiscal year 1947, estimating the budget
deficit at $1,900,000,000.
However, considering that there
are certain noncash expenditures included in the budget,
the Government, in current cash transactions, will take in
more1 money this''year than it will spend.
' '
-
Thus, for example, most of^the terminal leave pay that is, over $2,000,000,000 of it - will not be paid in
cash, but rather in terminal leave bonds.
Also, the interest
accruing on savings bonds which amounts to about $700,000,000
for the fiscal year, is treated as a budgetary expenditure,
but it will actually go to increase the value of the bonds,
and will not be paid out in cash until the bonds are redeemed.
In addition, interest- earned by C-ovèrnment trust funds which, in the aggregate, amounts to about $600,000,000 represents a noncash transaction.
As a result of these and
other items, there will be what we may call a cash operating
surplus of almost $3,000,000,000.
4
The noncash, items have to he paid, when due, but it is
helpful that they do not involve cash outlays to the public
at the present time.
While none of us likes the prospective budget deficit
of $1,900,000,000, yet it is a great improvement over the
estimate made last January.
At that time, the deficit was
estimated at $ 4 ,500 ,000,000 for this fiscal .year. -Many of'
us had hoped that the improvement would be even greater.
But a tremendous change has nevertheless taken place from
the deficit of $21,000,000,000 in the last fiscal year, and
$54,000,000,000 in fiscal 1945. Naturally there should be
an improvement, for the war, as far as the gunfire is con
cerned, is over.
But_,_frankly, we have actually done much
better than m ost people~expected could'tee done in the first
year after the cessation of h ostilitles.
it is easy to sit back and say that Government
You know
expenditures ought to be cut sharply to balance the budget.
It" is much harder, however, to put your finger on where the
cuts ought to be made.
There are people, unencumbered by the
responsibilities of office, who blandly say "reduce Govern
ment spending by such and such percent right across the board".
.iob
They never get very specific about i t • But'a butchering ^
.like that would create more troubles than it.would solve. It
was recently suggested, for example, that no less than two
million persons be fired from the Federal pay roll - as though
1 • Government agencies and services could be carried on
essential'
without pe r a onne1. Yet I think it will be interesting news to
you when I tell you tha ’the Federal Government has already resince VJ-Day.
leased nearly one million civilian employee
.o
And w e ’have done this without increasing unemployment in^th©
land or hurting the conduct of Government business.*- It ^is
worth noting, too, for the sake of realism,’ that total Federal
expenditures for the operation of the Legislative and Judicial
Branches and for administration of the Executive d ranch aside
from military and veterans activities is about $2,000,000,000
for the fiscal year 1947
around 5 percent of all Federal
expenditures. We want, of course, to reduce these expenses
as much as possible, but obviously any cuts large enough to
have any significant effect must come elsewhere.
Public works is an area in which cuts in expenditures
are often urged during times of inflationary pressures.
This counsel is sound, but total Federal expenditures for
nonmilitary public works are estimated at only a little*
over $1,000,000,000 for the’ present fi.s-.cal year.
This in
cludes the badly needed housing program.
S-87
5
One o f the l a r g e r areas of G o v e r n m e n t e x p e n d i t u r e s is
that c o m p o s e d of interest on the p u b l i c debt, refunds of
t a x e s , and veterans* b e n e fits.
E x p e n d i t u r e s fo r these purnoses are e s t i m a t e d at $ 1 3 , 0 0 0 , 0 0 0 , 0 0 0 this year.
This is
m a d e u p of $ 5 , 0 0 0 , 0 0 0 , 0 0 0 o f inter e s t on the p u b l i c debt,
$ 6 ,2 0 0 p0 0 0 ,0 0 0 of veterans* ben e f i t s , a n d $ 1 , 9 0 0 , 0 0 0 , 0 0 0 of
tax refunds.
T h ere is little p r o s p e c t o f a ny s u b s t a n t i a l
r e d uction in these e x p e n d i t u r e s since they r e p r e s e n t c o m m i t
ments a l r eady mad e in a c c o r d a n c e w i t h C o n g r e s s i o n a l m a n d a t e s .
E x p e n d i t u r e s for i n t e r n a t i o n a l finance are est i m a t e d at
$4,200,000,000.
T h ese e x p e n d i t u r e s are inve s t m e n t s for the
m o s t part, b u t the figure doe s n o t make any a l l o w a n c e for
future rep a y m e n t s a nd r e c o v e r i e s .
I n t e r n a t i o n a l finance rer
p r e s e n t s about 1 0 p e r c e n t of total e x p e n d i t u r e s ; and, w h i l e
this is a lot of money, there Is no d o u b t tha t these are
wise outlays in the inter e s t o f our i n t e r n a t i o n a l r e s p o n s i *
bilities.
T he n e w e s t i m a t e for n a t i o n a l d e f e n s e for t h i s fiscal
year is $ 1 8 , 5 0 0 , 0 0 0 , 0 0 0 in a total b u d g e t of $ 4 1 , 5 0 0 , 0 0 0 , 0 0 0 .
T he J a n u a r y b u d g e t estimate was a b o u t $ 1 5 , 0 0 0 , 0 0 0 , 0 0 0 .
There
are two principal r e a s o n s for the increase.
One of these is
the p a y m e n t of t e r m i n a l leave to en l i s t e d me n - a m o u n t i n g to
n e a r l y $ 3 , 5 0 0 * 0 0 0 , 0 0 0 - m o s t of which, as I fiatfe said
will*
be paid in terminal leave bonds.
The o t h e r a m o unts to
than ^ 5 0 0 , 0 0 0 , 0 0 0 fo r the increase in p ay of the a r m e d forces
p r o v i d e d for in l e g i s l a t i o n r e c e n t l y enacted.
The determination of the amount o f the necessity of par
ticular expenditures does not lie within the province of the
Treasury Department. I am not in a position to say whether
national defense expenditures could be reduced without Im
pairing our national security. I certainly want a strone
America. I certainly do not want to'repeat the mistake1we
made after the first world war. But I do want to emnhasi*»
tha t the size of this group- of expeSdltur.es. .singles it o n "
for special attention in looking for areas'ln .which to re
duce expenditures - keeping in mind, of course' t-.Viai.
ary considerations must be secohciarv'
11
of our needs for national defense.
--------- — -— r~
Let me assure you that there is no man in this country
more anxious than President /¿ruman to accomplish the major
of i?la2 Cing the budSet a^d reducing the public
. . I , » P r e s i d e n t feels, can be done without sacriItl
°f
forward looking policy he so persistently advo
cates. The\President believes our great hope for the future
lies^in the Vitality of our system of individual enterprise
and m the enormous capacity of our country to produce and
consume.
S-87
6
‘
-
T u r n i n g f r o m - e x p e n d i t u r e s to receipts, tax collections
co n t i n u e to run at a h i g h level. .As a_ resu l t of the r a p i d
r e c o n v e r s i o n from war. to ■p e a c etime p roduction, our n et r e
ceipts in this fiscal year are e s t i m a t e d at; almost
$40,000,000,000.
This is onl y a b out $ 7 , 0 0 0 , 0 0 0 , 0 0 0 less than
the pea k collections re a c h e d d u r i n g the. war.
The m a i n t e n a n c e of the p r e s e n t level of taxes has served
’to reduce the d e f i c i t sharply.
I believe, and I think that
the Congress and the A m e r i c a n people believe, that for our
comm o n good our p r e sent ’tax l e v e l s m u s t be m a i n t a i n e d for some
time.
This is inescapable if we are to achieve a b a l a n c e d bud
get and a surplus to b e u s e d to r e d u c e the p u blic debt.
I
know you w i l l . a g rée that the d e b t should be cut as m u c h as
possible in e x c e p t i o n a l l y p r o s p e r o u s times such as these; and,
as bankers, y ou will agree also, I think, that it is pure
fantasy, if n o t p l ain demagogy, to talk of tax r e d u c t i o n and
debt r e d u ction in the same breath.
In the t a x :field, -it.is the rolé o f the T r e a s u r y to make
rec o m m e n d a t i o n s .
W hat t h e ■law is, wil l d e p e n d u p o n the acti o n
of Congress. '.
Let us t u r n no w to the m a n a g e m e n t of the p u b l i c debt.
I use the t e t m in an economic sense, r a t h e r than in a narrow,
b o o k k e e p i n g sense.
The public debt today, is •so b i g that it dwarfs all ot her
debts in comparison.
This debt is of vital s i g n i ficance to
b a nks - and other investors, too - b e c a u s e G o v e r n m e n t s e c u r i
ties are now one o f t h e i r l a r g e s t a s s e t items.
F i f t y-five p e r c e nt of the total assets of all insured
commercial banks are in U n i t e d S t a t e s securities.
For mutual
savings banks, Federal s e c u rities c o n s t i t u t e nearly, two*t h l r d s o f all a s s ets'; and for ins u r a n c e companies.,- the ratio
is almost one-lia-lf.
i'of n o n f inane ial c.onpo rat ions, a b out
o n e - h a l f of the ir -l i q u i d asse t s consists of Federal s e c u r i tie_s
Indiv iduals also- h o l d a large volume of U n i t e d States s e c u r i
ties - in' fact, hold, twice as m a n y as all life i n s u r ance c o m
p a nies a n d m u t u a l s a v i n g s b a n k s combined.
So, it is no W o n d e r that th e m a n a g e m e n t of the public
d e b t in v o l v e s m a n y issues.
No w o n d e r that there are m a n y
ideas as, to what' s h o u l d b e done.
F r ank d i s c u s s i o n of these
ideas - c o m p e t i t i o n among t h e m for survival - is a h e a l t h y
m a n i f e s t a t i o n of, the. d e m o c r a t i c p r o c e s s in operation.
S-87
v
-
7
One aspect of public debt management which is frequently
discussed has to do with the size of the short-term debt. The
distribution of the debt by maturity classes is primarily a
function of the distribution of ownership - that is to say,
securities are tailored to the needs of the various investor
classes as much as possible.
Thus, short-term securities go
to the. banks and to business organizations.
Almost half of
bank holdings of securities are due or callable in less than
one year.
In the case of nonfinancial corporations, fourfifths of United States Government security holdings are
either presentable on demand or fall due within one year.
In contrast,■ longer-term securities are designed for
long-term savings ,investors, such as insurance companies,
savings banks, and individuals.
Three-fourths of the
Federal securities held by insurance companies and savings
banks are not due or callable for more than ten years.
In
the case of Individuals, more than two-thirds of United
States securities held are savings bonds, which were de
signed to avoid, the risks of market fluctuations ■which
proved so disastrous to the small holder of bonds after
World War I •
Accordingly, this "tailoring of securities to meet
investors’ needs sets the maturity structure almost auto
matically; and. has resulted in a substantial volume of
short-term securities.
It may be noted in passing that
the same idea was followed by the British and Canadian
Governments in their war financing.
On the question of the short-term debt, I wonder if you
know the extent of the Treasury’s- program of debt reduction
in recent months'.
From February 28 through September 1, the
Treasury reduced the public debt by about f;
.14,000,000,000'as
a result of the .heavy pay-offs made on maturities of market
able securities each m o n t h . Preliminary figures indicate
that commercial banks and Federal Reserve Banks reduced their
holdings of Federal securities by about seven-eightbs of the
total debt reduction during the period.
This is an example
of public debt management tied in to the fiscal program of
the Government with the objective of aiding the control of
inflationary forces.
Mow let’ s spend a minute on the .savings bond program,
In my opinion, -this program, is of prime importance to our
postwar financing and. is vital on the fiscal front at the
present time.
I do not believe that it would be helpful
under present conditions to promote an all-out bond selling
campaign like the War Loans or the Victory Loan.
S-87
-
8
-
It is possible, however, to do a day-to-day job selling
bonds in order to maintain and extend the payroll savings
plan and to sell the ‘A merican people on the idea of invest
ing in savings bonds for their own good.
Savings bond
promotion actually is doing this.
Sales this fiscal year
will be about &8.000.000.000 if the present rate of sale ,
continues. This program is absorbing a considerable volume
of funds which would otherv/ise have been spent, and is. help
ing to achieve a broader .distribution of the public debt.
I urge your continued support of the saving*s bond program especially of the payroll savings plan and other efforts of
the savings bond sales group to absorb spendable money
through the sale of Series E» bonds.
Let us turn now for a moment to the subject of interest
rates.
It is sometimes urged that higher interest rates
would aid In the control of inflationary forces.
It is my view that, for the present, no anti-inflationary purpos e would be served by increasing interest rates,
This Is be cause it would interfere with the stability of the
Government bond market and would introduce uncertainties,
The immediwhich them selves might contribute to inflation.
of
higher
interest
rates
might
very
well
be to
ate effect
rather
than
to
decrease,
the
volume
of
currency
in crease,
This is because the typical investor’s reand deposi ts.
action to the higher rates might be ’’wait and see” , rather
than 11run and invest” .
The stability of the bond market since the e n d .of the
w ar has eased the financial problems of •reconversion, both
for the Government and for, business firms. The stability
of the Government bond market results In a degree of busi
ness confidence wbd ch is of tremendous value in achieving
and maintaining full, production.
It contributes to the
confidence of the public in the credit of the United States
and in the enduring stability of the currency.
We must not
impair this confidence.
In closing, there ib one thought I would leave with ypu so general in its nature as to' be applicable, not only to the
problems discussed with you today, but also to any problem
important in the formulation of a sound public policy,
It is that all our major problems can best be met if we Americans,
all of us, remembering our heritage of accomplishment, of
achievement over adversity, approach the future with confidence.
S-87
9
Hot because the path Is easy, but because we as
Americans have thrived and will thrive under conditions
that call for extra effort and united effort on the part
of all of us. "
I appreciate the opportunity to speak to you today.
Again, I extend the sincere thanks of the Treasury Depart
ment for the cooperation which the banks of the country,
as a vital and integrated element in the Nation* s economic
structure, have given to the conquest of our common
economic problems.
0O0
S-87
w m m i department
Washington
Press Service
fCft RELEASE, MORNING NEWSPAPERS,
Taasday, September 2k« 19lf6.
th« Secretary ef the Treasury announced last evening that the tender» for
»1,300,000,000, or thereabouts, of »-toy Treatery bills to be dated September 26 and to
natera liecember 26, l?i(6, teieh eere offered on Septesdier 20, 1*6, w ™
°P«n»d at the
Federal Reserve Banks on September 23*
fha details of this issue are as felloe»»
KS=52.“r:SSS££S <£“s
Averts
prism
8iiT4’“*
- 99 *90$J Equivalent rate of discount approx* 0.3lSi P®* asaaa
Eange of accepted competitive bidet
99 .9&! Equivalent rate of discount approx* 0.368J per annu-.s.
High
Lee
-
99*90$
*
m
m
*
»
Q»37b%
percent of the amount bid for at the low price aae accepted)
Federal Reserve
District
Total
Applied for
Total
Accepted
Boston
Bee York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St* Louis
Minneapolis
Kansas City
ThaiT*fl
San Francisco
»
$
9,825,000
l,k3?,097,000
2li,U60,000
17.912.000
8,510,000
1.625.000
257,7 W , 000
23.501.000
9.365.000
TOTAL
7,329,000
1,017,577,000
17.836.000
12.952.000
7.070.000
1.625.000
179,31*0,000
.
16 621.000
7,285,000
9.800.000
8,aiiO,ooo
rJfi:, 5,225,000
25,900,«»
22 ,060,000
$1,830,960,000
$l,303,w*0,000
fc,905,ooo
TREASURY REPARTIERT
Washington
Press Service
' Ho* S-88
POR REIRASE, MORNING NEWSPAPERS
Tu esday, September 24? 1946.
/
announced las t evening that
thereabouts, of 91-day
The
the Pederal Reserve Banks on September 23.
The details of this issue are as follows:
Total applied for
Total accepted
Average price
$1 ,830,960,000
(includes $29,970,000 entered
on a fixed-price- basis at
99.905 and accepted in full)
9 9 .905 / Equivalent rate of discount approx*
Tr/rrt/
u .37 5/0 per annum.
1,303,440,000
Range of accepted competitive bids:
High - 99.907 Equivalent rate of discount approx. 0.368/1. per annum
H
tl
U
tt
tt
' Q 'znaà/ tt
H
low - 99.905
(68 percent' of the amount bid for "at the low price was accepted)
Eederal Reserve
listrict____
Total
A ccepted
Total
Applied For
$
9 ,8 2 5 ,0 0 0
1,437,09.7,000
2 4 ,4 6 0 ,0 0 0
1 7 ,9 1 2 ,0 0 0
8 ,5 1 0 ,0 0 0
1 ,6 2 5 ,0 0 0
.257,740,000
2 3 ,5 0 1 ,0 0 0
9 ,3 6 5 ,0 0 0
9,800,000
5 ,2 2 5 ,0 0 0
2 5 ,9 0 0 ,0 0 0
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St* Louis
Uinneapolis
Kansas City
Da11as
San Francisco
TOTAL
$1 , 8 3 0 , 9 6 0 ,0 0 0
$
7,329,000
4 W 7 ?577,000
17,836,000
1 2 ,952,000
7 .070.000
1.625.000
179,340,000
16,621,000
7,285,000
8,840,000
4,905,000
2 2 , 0 6 0 , 0Q0
$1,303,440,000
numm m?mmm
Washington
m
m m u M w o m s &,
Toagday, Swpfceateer
19M>*
Press Service
1 *0 , s - f 7
B » Treasury today aasoanoed tea subscription figures and tbs basis
of allotment for the offering of 7/8 percent treasury C ertificate* of
Indebtedness of Series J-19W in exchange for C ertificates of Indebtedness
of Series H-19li6, maturing October 1 , 19fa6, In the amount of §3»k39»855»000.
Reports received from the Federal Reserve Barits show that subscriptions
aggregate
§3, 202,000 ,000 .
Subscriptions 1» amounts up to and including
§25,000, totalin g shout §37 ,000 ,000, sere allotted in f u ll.
Subscriptions
in amounts over §25,000 «ere allotted ^ percent on a straight percentage
baeie, but not lees than §25,000 to any one subscriber, with adjustment#,
inhere necessary, to the next highest $1#0Q0*
Details as to subscriptions and allotments w ill be announced when fin al
reports are received from the Federal Reserve Bank»«
TREASURY DEPARTMENT
Washington
POR IiaŒDXATE RELEASE,
Tuesday, September 24, 1946.
Press Service
No. S -89
The Treasury today announced the subscription figures and
thé basis of allotment for the offering of 7/8 percent Treasury
Certificates of Indebtedness of Series J-1947 in exchange for
Certificates of Indebtedness of Series H-1946, maturing
October 1, 1946,
in the amount of 43?439,855,000.
Reports received from the Federal Reserve Banks show that
subscriptions aggregate 43,202,000,000.
Subscriptions in
amounts up to and including 425,000 totaling about 437,000,000,
were allotted in full.
Subscriptions in amounts over $ 2 5 ,0 0 0 ,
faere .allotted'44 percent on a :straight percentage basis, but
not less than 4 25,000 to any one subscriber, with adjustments,
where necessary,
to the next highest 4l?000.
Details as to subscriptions and allotments will be
announced when final reports are received from the Federal
Reserve Banks
\
oOo
ALEHA
- 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.
I4I8,
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.
XSEEH3CX
-
2
-
Immediately after the closing hour, tenders vd.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
October 3» 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 tax
,
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 ainy 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 191*1, the amount of discount at which bills issued here
under are sold shall not be considered to accrue until such Dills shall be
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Friday, September 27« 19ii6____ •
W
The Secretary of the Treasury, by this public notice, invites tenders for
§ 1 ,300,000,000 , or thereabouts, of
91 -day ireasuryMlls, to be issued
----- a ®
^
,
.f
on a discount basis under competitive and fixed-price bidding as lereinafter
provided.
The bills of this series will be dated
> when
QctoberjL^19li6
and
will mature
January 2, 19k7
out interest.
They will be issued in bearer form only, and in denominations
the face amount irill.be payable with-
of ?1,0003 $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, September 30, 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 recognizfed 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, MORNING NEWSPAPERS,
Friday, September 27, 1946_____
Press Service
No.. S-90
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 compe
titive and fixed-price bidding as hereinafter- provided* The
bills of this series will be dated October 3, 1946, and will
mature January 2, 1947, 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,
f>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.rrw, Eastern
Standard time, Monday, September 30, 1946.
Tenders will not
be received at the Treasury Department, Washington.
Each
tender must be for an even multiple of $1,000, ana the price
offered must be expressed on the basis of 100, with not more
than three decimals, e.g., 99*925*. Fractions may not be used.
It is urged that tenders be made on the printed forms and
forwarded in the special envelopes which will be supplied by
Federal Reserve Banks or Branches on application therefor.
Tenders will be received without deposit from incorporated
banks and trust companies and from responsible and recognized
dealers in investment securities.
Tenders from others must be
accompanied by payment of 2 percent of the face amount of
Treasury bills' applied for, unless the tenders are accompanied
by an express guaranty of payment by an incorporated bank or
trust company.
Immediately after the closing hour, tenders will be
opened at the Federal Reserve Banks and Branches, following
which public announcement will be made by the Secretary of
the Treasury of the amount and price range of accepted bids.
Those submitting tenders will be advised of the acceptance
or rejection thereof.
The Secretary of the Treasury expressly
reserves the right to accept or re ject. 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
October 3, 1946.
ago at Bratton Woods, and again at the
Savannah Conference last March,
1© have the machinery - let us put
it to work.
of these Institutions.
We must not fail
our governments and, above all* the
hopeful people they represent*
The spirit of cooperation and
enthusiasm which we show here* will carry
over into the day»to-day operations of
the Fund and Bank,
i can ask no more
than that the members of the Boards of
governors gathered together at this
meeting will have the same spirit of
cooperation, and the same faith and will
to succeed, as was manifested two years
that we reach an agreement on common
standards of fair practice in
international dealings*
The world is looking to us as we
begin our task of putting the Fund and
Sank in full operation*
At Bretton
Woods we gave a war-weary world the
promise of peaceful trade and economic
prosperity*
In joining the £und and Bank
our respective governments have not only
Invested large sums of money, but they
have in a considerable measure staked
their economic destinies on the success
Cooperai Ion in the economic world is
no less important than cooperation in
the political world*
it is essential
to the peace and prosperity of all
nations that they operate under the same
fundamental rules in their business
dealings with one another*
The charters
of the Fund and Sank are drawn broadly
enough to encompass various types of
economic and trading systems*
In this
world of rapid change and widely
differing systems of economic and
political organization, it Is essential
J
‘ ?
'r n
into existence.
It has always been
•i
contemplated that eventually other
nations would want to join«
Obviouslyf
the Fund and Bank will gain strength if
the largest possible number of
peace-loving nations join with us.
All
but 6 of the 44 nations represented at
the Sretton Woods Conference have joined
Fund and a n „ * T are
the Bank,
I sincerely hope that all
peace-loving countries will see their
advantage in becoming members of both
institutions in the very near future.
In an atmosphere of internatlonal gooo
will is wholesome and will contribute to
y» * ,
m
' V:
/.■
^
\ 4 /.
■ l
\
-V,
’ | * ?"1, |g§ H |
the expansion of internet ional trade,
Econoiic warfare reduces trad® and
creates suspicion among nations*
e
cannot afford to permit economic warfare
to weaken the bonds which hold the
United Nations together*
Among the problems with which the
3o*rds of governors will want to deal at
this meeting is that of considering the
applications for membership which have
been made since the Fund and Bank came
A funotIon of the Fund which I want
to emphasize Is that of promoting
common standards of fair practice In
monetary and financial relation© among
nations«
In discharging this function,
the Fund must be a flexible instrument
capable of adjusting to changing
interriatIon&l economic conditions«
At
this time I believe that our success can
be measured by our development of
acceptable standards to which all
countries are willing to adhere«
Healthy economic competition undertaken
**
3L$?
*»
of exchange rates at their proper levels
will give encouragement to the flow of
international commerce and investment,
and give confidence to people everywhere
in their own currencies.
Everyone must
realize that this is a most complicated
and difficult task.
The mere attempt
to do this is a great pioneering step,
and although we shall undoubtedly find
obstacles and resistances, I
m
sure we
shall be successful if we have the full
cooperation and the confidence of the
member nations#
One of the west important jobs on
which the Fund is now engaged is to
determine by agreement with each member
country the par value of its currency*
if we are to avoid the uneconomic
consequences of improper exchange rates,
and avoid the competitive undermining
of the exchange rate structure, we must
determine by cooperative action a
pattern of rates which will be consistent
with the maintenance of internet fonai
equilibrium and stability of Internationa
currency values*
An early stabilization
will necessarily retain csrtain controls
during the transition period*
However,
a most immediate task of the Fund should
be to encourage and assist all of its
members in removing these restrictions
as rapidly as possible*
We have long
since agreed that we must attack these
problems together*
Active leadership
on the part of the Fund in this regard
is essential if world trade is to be
restored to a high level and if
economic warfare among nations is to be
avoided*
.
-
-
-.....
3$
- y >-
-
fixtures of international commerce.
The
C
£
Fund can provide timely assistance to
countries in maintaining imports while
their export industries and foreign
markets are being restored.
There are many obstructions in
world trade, closely related to monetary
and financial arrangements, but the
existence of the Fund and Bank as
operating institutions will greatly
facilitate their removal.
We should
expect no overnight solutions of these
problems, since some members of the Fund
they ntid the help that the Pti®i it
designed to provide*
We all know that
no government can function internally
or externally without a sound currency
system*
Every encouragement should he
given to countries to get rid of
currency restrictions» wartime or
otherwise» which are designed to cover up
fundamental weaknesses*
We must not
allow the restrictive and discriminatory
trade and currency practices which were
forced upon many countries prior to and
during the war to become permanent
il
m
JTS
IH
parts at the world are in need of funds
In order to develop their productive
resources or to improve existing
facilities.
The economic goal of the
United Nations is productive employment
for all who ar® able and willing to work,
and better living standards for everyone.
It is equally urgent that the
International Monetary Fund begin full
optrations at an early date.
During
this critical period, when nations are
endeavoring to restore their currencies,
Y
«
I D
«
for underwriting reconstruct ion loons It
countries otherwise unable to borrow on
reasonalbe terns*
I »at sure that all of
us in the Sank are conscious of how
far-reaching our operations will be9
even though necessarily tempered by the
distinctions between prudent lending and
improvident borrowing*
in addition to assisting in the
restoration of war-devastated areas, the
Bank will have an enduring function in
stimulating the flow of international
capital for development purposes*
Many
- li?*
only In recognition of tho world’s
urgent reconstruction requirements but
In the expectation that the international
Bank would soon become the principal
international lending Institution.
Despite the very large loan commitments
already made by the Export-Import Bank
and by the United States and other
governments, there remain large credit
needs which should bs met if we are to
have a stable and prosperous world.
As
we all know, the International Bank must
now assume the primary responsibility
m
|1| Up
prompted not only by its recognition
of the great needs of other nations, but
also because, as a member of the world
family, the intelligent self-interest
of the United States recognizes that all
of us must move forward together*
/As
a part of this broad program,
since Y-E Gay, our Export-Import Bank has
made loan commi traente of over two billion
dollars, tha bulk of which has been for
reconstruction purposes*
When the United
States Congress increased the lending pow
of the Export-import Bank in 1945 from fT;
million to 13,500,000,000 it did so not
peace and economic stability, through
encouraging the formation of the United
Nation* organization, 8r®tton
other international groups.
cods and
And in
furtherance of the ideals and objectives
of these endeavors, the United States
has been privileged to offer considerable
financial aid in an earnest effort to
reestablish economic equilibrium in the
war«devastated countries, as well as in
those countries materially affected by
the effects of the war#
in making this
contribution, the United States has been
6
has been denied the financial means of
obtaining temporary relief and
assistance*
As the world shortages of
goods are overcome, however, financial
needs will become even more apparent
than they now are*
The war-«devastated
countries must now be put in a position
to restore production as rapidly as
possible on a scale adequate for home
use and for export*
it has been the privilege of the
United States to offer leadership in
positive action toward international
•*
Mr« Camille 8utt as Managing Director
of the Fund and Mr, Eugene Meyer as
President of the Sank has Inspired
Idence In the institutions whose
operations they have been chosen to
guide.
I wish to commend the Executive
Directors for their excellent work
during this organizational period*
The initial period of building the
structures of the Fund and Sank is at
an end*
From now on they will be
operating agencies in their appointed
fields.
If I may be permitted to express
We are new beyond the blueprint
stage of Bretton Woods*
Last March at
the Savannah Conference we established
the basic operating structure under
which those institutions of international
cooperation would function*
The period
since the Savannah Conference has been
one of building the organizations*
Sasic procedures and policy have been
explored by the Executive directors of
the Fund and Bank and the important task
of choosing key personnel has been
practically completed*
The election of
a
shared! that postwar problems would b©
complex| and would require unprecedented
international cooperation.
These
expectations have been realized* the
magnitude of our postwar international
economic and financial problems has mors
than taxed our individual abilities*
must now actively assume our share in tns
task of building a permanent peace and
providing a prosperous life for the
peoples of the world*
to meet this challenge.
We must not fall
Secretary snydar’a Address to the Boards or Governors
of the International Monetary Fund and the International
Bank for Reconstruction and Development
I welcome you to' Washington*
And
I tile# this opportunity of expressing
my deep appreciation of the honor of
serving as your Chairman«
S am conscious of the great
responsibility which we share a®
Governors of the Boards of the Vorlc
Funu and
period*
arid Bank during this critical
! » agreement reached at
years ago was pass® iri I s
only because of the convictions we
TREASURY DEPARTMENT
Washington
(The f o l l o w i n g address b y S e c r e t a r y S n y d e r in his
c a p a c i t y as Chairman of the B o a r d s of Gov e r n o r s
of 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,
is for release u p o n d e l i v e r y w h i c h is exp e c t e d to
be about 4 :30 P .M ., '£*S . T . ' Friday, S e p temb e r 27 ,
1946.)
I w e l c o m e y ou to W a s h i n g t o n .
A n d I take this o p p o r t u n i t y
of e x p r e s s i n g m y d eep a p p r e c i a t i o n of the h o n o r of serving
as your Chairman.
I a m c o n s c i o u s of the great r e s p o n s i b i l i t y w h i c h we share
as G o v e rnors o f the B o a r d s o f the W o r l d Fund and W o r l d B a n k
during this critical period.
The a g r e e m e n t r e ached at B r e t t o n
Woods two years ago w a s p o s s i b l e onl y b e c a u s e of the convictions w e shared that p o s t w a r problems w o u l d be complex, a n d
w o u l d require u n p r e c e d e n t e d i n t e r n a t i o n a l cooperation.
These
expectations have b e e n realized; the m a g n i t u d e o f o ur p o s t w a r
international economic a n d financial pr o b l e m s has more than
taxed o u r Individual abilities.
lie m u s t n o w a c t i v e l y assume
our share in the task o f b u i l d i n g a p e r m a n e n t peace and p r o
viding a p r o s perous life for the pe o p l e s o f the world. We m u s t
not fail to m e e t this challenge.
We are n o w b e y o n d the b l u e p r i n t stage of B r e t t o n Woods.
Last M a r c h at the S a v a n n a h C o n f e r e n c e
e s t a b l i s h e d the
basic o p e r a t i n g structure u n d e r w h i c h these i n s t i t u t i o n s of
international c o o p e ration would function.
The p e r i o d since
the S a v a n n a h C o n f e r e n c e has b e e n one of b u i l d i n g the o r g a n
izations.
Basic p r o c e d u r e s and p o l i c y have b e e n e x p l o r e d
by the E x e c u t i v e D i r e c t o r s of the Fund and B a n k and the
important task o f choosing key p e r s o n n e l has b e e n p r a c t i c a l l y
completed.
The e l e ction of Mr. C a m i l l e G u t t as M a n a g i q g
D i r e c t o r of the Fund and Mr. E u g e n e M e y e r as P r e s i d e n t of the
Bank has inspired c o n f i d e n c e
in the i n s t i t u t i o n s w h ose o p e r
ations t h e y have b e e n c h o s e n to g u i d e .
I w i s h to co m m e n d the
Ex ecutive D i r e c t o r s for their e x c e l l e n t w o r k d u r i n g this
organi z a t i o n a l period.
we
The initial period o f b u i l d i n g t he s t r u ctures o f the Fund
and B a n k is at an end.
F rom
on thiey will be o p e r a t i n g
agencies in their a p p o i n t e d fields.
I f I m a y be permitted to
expre'ss the k e y n o t e of this s e c o n d m e e t i n g of the Boards of
Gov ernors, it is this:
Let us lose no time in sp e e d i l y
activating the Fund a n d B a n k as e f f e c t i v e inst r u m e n t s in a
world sorely in n e e d of their s e r v i c e s .
now
2
T'he Fund and B ank were d e s i g n e d to m e e t b o t h the i m m e d i
ate p o s t w a r and the longer term m o n e t a r y and financial n e e d s
of the world.
I think we m a y take pride in s a y i n g that since the end
of the war, n o n a t i o n - d e s pite its m a n y o t her woe s and
troubles - has b e e n denied the financial m e a n s o f o b t a i n i n g
temporary r e l i e f and assistance.
As the w o r l d shortages of
goods are overcome, however, fin a n c i a l n e e d s w ill b e c o m e even
more a p p arent than t h e y n o w are.
The w a r - d e v a s t s t e d countries
mus t n o w be pu t in a po s i t i o n to restore p r o d u c t i o n as r a p i d l y
as po s s i b l e on a scale a d e quate for h o m e use and for export.
It has b e e n the privilege of the U n i t e d States to o f fer
l e a d e r s h i p in p o s i t i v e a c t i o n toward i n t e r n a t i o n a l peace and
e c o n o m i c stability, t h r o u g h e n c o u r a g i n g the fo r m a t i o n of the
U n ited N a t i o n s o r ganization, B r e t t o n W o o d s and other i n t e r
nat i o n a l groups.
A n d in f u r t h e r a n c e o f the ideals and o b j e c
tives o f these endeavors, the U n i t e d States has b e e n p r i v i l e g e d
to offer considerable financial aid in an e a r nest effort to
r e e s t a b l i s h economic e q u i l i b r i u m in the w a r - d e v a s t a t e d c o u n
tries, as w ell as in those countries m a t e r i a l l y a f f e c t e d by
the e f f e c t s o f the war.
In m a k i n g this contribution, the
U n i t e d States has b e e n p r o m p t e d n o t o n l y b y its r e c o g n i t i o n
of the g r e a t n e eds of other nations, b u t also because, as a
m e mber of* the w o r l d family, the i n t e l l i g e n t s e l f - i n t e r e s t of
the U n i t e d States recognizes that all o f us m u s t m ove forward
together.
As a part o f this b r o a d program, since V-E Day, our
E x p o r t - I m p o r t Bank has m a d e loan c o m m i t m e n t s of over ’’
:’
| 2 ,0 0 0 ,0 0 0 ,0 0 0 , the b u l k o f w h i c h h as b e e n for r e c o n s t r u c t i o n
purposes.
W h e n the U n i t e d States C o n g r e s s i n c r e a s e d the l e n d
ing p o w e r of the E x p o r t - I m p o r t B a n k in 1945 f r o m $ 7 0 0 , 0 0 0 , 0 0 0
to $ 3 , 5 0 0 , 0 0 0 , 0 0 0 , it did so not o n l y in r e c o g n i t i o n of the
w o r l d ’s u r g e n t r e c o n s t r u c t i o n r e q u i r e m e n t s b u t in the e x p e c t a
tion that the I n t e r n a t i o n a l Ban k w o u l d soon b e c o m e the p r i n c i
pal in t e r n a t i o n a l l e n d i n g insti t u t i o n *
D e s p i t e the very large
loan c o m m i t m e n t s a l r e a d y m a d e b y the E x p o r t - I m p o r t B a n k and by
the U n i t e d States and o t her g o v e r n m e n t s , there remain large
credit n e e d s w h i c h should be m e t if we are to have a stable
and prosperous world.
As we all know, the I n t e r n a t i o n a l Ban k
must n o w assume the p r i m a r y r e s p o n s i b i l i t y for u n d e r w r i t i n g
r e c o n s t r u c t i o n loans to countries o t h e r w i s e u n a b l e to b o r r o w
on rea s o n a b l e terms.
I am sure the t all o f us in the B a n k
are c o n s c i o u s of h o w f a r - r e a c h i n g o u r o p e r a t i o n s will be,
even though n e c e s s a r i l y tempered b y the d i s t i n c t i o n s b e t w e e n
prudent l e n d i n g and i m p r o vident b o r r o w i n g ,
•
5
In a d d i t i o n to a s s i s t i n g in the r e s t o r a t i o n o f ward e v a s t a t e d areas, the B a n k w i l l have an e n d u r i n g funct i o n
in s t i m u l a t i n g the flow of I n t e r n a t i o n a l capital for d e
v e l o p m e n t purposes.
M a n y parts of the world are in n e e d o f
funds In order to d e v e l o p their p r o d u c t i v e r e s o u r c e s or to
improve e x i s t i n g facilities.
The e c o n o m i c g o a l o f the U n i t e d
N a t i o n s is p r o d u c t i v e employment for all w ho are able and
w i l l i n g to work, and b e t t e r living standards for everyone.
It is e q u a l l y urgen t that the I n t e r n a t i o n a l M o n e t a r y
Fund b e g i n full o p e r ations at an e a r l y date.
D u r i n g this
critical period, w h e n nations are e n d e a v o r i n g to restore
their currencies, they n e e d the h e l p that the Fund is d e
signed to provide.
W e all k n o w that no g o v e r n m e n t can
function i n t e r n a l l y or e x t e r n a l l y w i t h o u t a sound c u r r e n c y
system.
E v e r y E n c o u r a g e m e n t should be g i ven to countries
to get fid of c u r r e n c y restrictions, w a r t i m e or otherwise,
w h i c h are d e s i g n e d to cover up f u n d a m e n t a l w e a k n e s s e s .
We
must n o t a l l o w the rest r i c t i v e and d i s c r i m i n a t o r y trade and
c u r rency p r a c t i c e s w h i c h were f o r c e d u p o n m a n y countries
prior to and d u r i n g the war to beco m e p e r m a n e n t fixtures of
international commerce.
Th e Fund can pr o v i d e t i m e l y a s s i s t
ance to countries in m a i n t a i n i n g imports while their export
i ndustries and fo r e i g n m a r k e t s are b e i n g restored.
There are m a n y o b s t r u c t i o n s in w o r l d trade, closely,
related to m o n e t a r y and f i n a ncial arrangements', but the e x
istence o f the Fund and B a n k as o p e r a t i n g i n s t i t u t i o n s will
g r e a t l y fac i l i t a t e t h eir removal.
We should expect no o v e r
n i g h t s o l u tions of these problems, since some m e m b e r s of
the Fund will n e c e s s a r i l y r e t a i n c e r t a i n c o n trols during the
tra n s i t i o n period.
However, a m o s t immediate t a s k of the
Fund should be to encourage and assist all of its m e m b e r s in
r e m o v i n g these r e s t r ictions as r a p i d l y as possible.
W e have
long since agre e d that we m u s t a t t a c k these problems together.
Acti v e l e a d e r s h i p on the part o f the Fund in this r e g a r d is
e s s ential i f world trade is to be re s t o r e d to a h i g h level and
if economic w a r f a r e among n a t i o n s is to be avoided.
One of the m o s t important jobs on w h i c h the F u n d Is n o w
en g a g e d is to det e r m i n e b y a g r e e m e n t w i t h each m e m b e r c o u n t r y
the par value of its currency.
If we are to avoid the u n
ec o n o m i c c o n s e q u e n c e s of improper e x c h a n g e rates, and a v oid
the c o m p e t i t i v e u n d e r m i n i n g of the exc h a n g e rate structure,
we m u s t d e t e r m i n e b y c o o p erative action a p a t t e r n of rates
w h i c h will be c o n s i s t e n t w i t h the m a i n t e n a n c e o f inter n a t i o n a l
e q u i l i b r i u m and s t a b i l i t y of i n t e r n a t i o n a l c u r r e n c y values,
-
4
-
An early st a b i l i z a t i o n of exchange rates at their p r o p e r levels
will g ive e n c o u r a g e m e n t to the flow of in t e r n a t i o n a l commerce
and investment, and give con f i d e n c e to.people e v e r y w h e r e in
their own currencies.
E v e r y o n e mus t realize that this is a
m o s t c o m p l i c a t e d and d i f f i c u l t task.
The m e r e at t e m p t to do
this is a g r e a t p i o n e e r i n g step, and a l t h o u g h we shall un-*
d o u b t e d l y find o b s t acles and resistances, I a m sure we shall
be successful if we have the full c o o p e r a t i o n and the confix
dence of the m e m b e r natio n s .
A function of the -Fund, w h i c h I want to emphasize- is that
of p r o m o t i n g common standards of fair p r a c t i c e in m o n e t a r y
and financial relations among n a t i o n s .
In d i s c h a r g i n g this
.function the Fund must be a flexible instrument capable of
adjusting to c h a n g i n g i n t e r n a t i o n a l eco n o m i c conditions.
At
t his t i m e 1 b e l i e v e that our success can be m e a s u r e d b y o ur
d e v e l o p m e n t of a c c e p t a b l e standards to w h i c h all countries
are w i lling to adhere.
Healthy economic competition und e r
taken in an a t m o s p h e r e of i n t e r n a t i o n a l g o o d w ill is w h o l e
some and will cont r i b u t e to the e x p a n s i o n o f i n t e r n a t i o n a l
trade.
E c o n o m i c w a r f a r e reduces trade and creates s u s picion
among nations.
We cannot afford to p e rmit economic wa r f a r e
to w e a k e n the bonds w h i c h h o l d the U n i t e d N a t i o n s together.
A m ong the problems w i t h w h i c h the Boar d s of Governors
will w a n t to dea l at this m e e t i n g is that of cons i d e r i n g the
appli c a t i o n s for m e m b e r s h i p w h i c h hav e b e e n m a d e since the
Fund and B a n k came into existence.
It has a l w a y s b e e n c o n
tem p l a t e d that e v e n t u a l l y other n a t i o n s w o u l d want to join.
Obviously, the Fund and Bank will g a i n s t r e n g t h if the l a r g e s t
possible number of p e a c e - l o v i n g n a t i o n s join w i t h us.
All but
six of the 44 n a tions r e p r e s e n t e d at the B r e t t o n Woods C o n f e r
ence have joined the Fund and all but s e v e n are m e m b e r s of the
Bank.
I s i n c e r e l y h o p e that all p e a c e - l o v i n g c o u n tries will
see their adv a n t a g e in b e c o m i n g m e m b e r s o f b o t h I nstitutions
in the very n e a r future.
C o o p e r a t i o n in the ec o n o m i c w o rld is
no less i m p ortant than c o o p e r a t i o n in the p o l i t i c a l world.
It
is e s s ential to the p e ace and p r o s p e r i t y of all n a t i o n s that
they operate u n d e r the 'same f undamental rules in their b u s iness
d e a lings w i t h one another.
T he c h a rters of the Fund and B a n k
are drawn b r o a d l y e n o u g h to en c o m p a s s various types of economic
and t r a d i n g systems.
In this w o r l d o f rapid change and w i d e l y
dif f e r i n g systems of e c o n o m i c and p o l i t i c a l o r g a n ization, it is
essential that we reach an a g r e e m e n t on c o m m o n standards of
fair p r a c t i c e in i n t e r n a t i o n a l d e a l i n g s .
5
The w o r l d is looking to us as we b e g i n our task of
p u t t i n g the Fund and Ban k in full o peration.
At B r e t t o n
f o o d s we gave a w a r - w e a r y world the p r o m i s e of peaceful
trade and e c o n o m i c p rosperity.
In joining the Blind and
Bank, our respective g o v e r n m e n t s have n o t .only invested
large sums of money, but they hav e in a c onsiderable m e a s u r e
staked their economic des t i n i e s on the success of these i n
stitutions.
We must not fail o u r g o v e r n m e n t s and, above all,
the h o p e f u l p e o p l e they represent.
The spirit of c o o p e r a t i o n and e n t h u s i a s m w h i c h we show
h e r e , will c a rry over into the d a y - t o - d a y o p e r a t i o n s of the
Fund and Bank,
I c an ask no m o r e than that the m e m b e r s of
the B o a r d s of G o v e r n o r s g a t h e r e d to g e t h e r at this m e e t i n g
will h ave the same spirit o f cooperation, and the same f a i t h
and will to succeed, as was m a n i f e s t e d two years ago at
B r e t t o n Woods, and a g a i n at the S a v a n n a h C o n f e r e n c e last
March,
We have
the m a c h i n e r y - let us put
1
;
p
it to work.
'
I
0 O0
f
/
FOR IMMEDIATE RELEASE
September 26,
19b£>
The Bureau of Customs announced today that the quota of
8,883,2E>9
pounds of Mexican cotton and the quota of 618,723 pounds of Brazilian
cotton having a staple length of less than l**l/8 inches (other than
harsh or rough cotton of less than 3A
inches in staple length and
.
chiefly used in the manufacture of blankets and blanketing, and other
than linters), was filled on September 20, 19U6, at the opening hour
of the quota period ending September 19,
19k7•
The quota of 69,62? pounds of British Indian cotton card strips
and comber wastes made from cottons of less than 1—3/16 inches in
staple length, lap waste, sliver waste,and roving waste, whether or
not manufactured or otherwise advanced in value was also filled at the
opening hour on September 20«
The collectors of customs in whose districts entries of such cotton
and cotton waste were presented at 12noon E.S.T. or its equivalent on
September 20 have been authorized by the Bureau of Customs to permit
release of 99.2883 per centum of each entry of Mexican cotton,
per centum of each entry of Brazilian cotton and 68 .3 A per centum of
each entry of British Indian cotton waste which amounts exhaust such
quotas for the current quota year.
TREASURY DEPARTMENT
Washington
EOR IMMEDIATE RELEASE
September 26, 1946
Press Service
No. S-92
The Bureau of Customs announced today that the quota of
8,883,259 pounds of Mexican cotton and the quota of 618,723
pounds of Brazilian cotton having a staple length of less than
1-1/8 inches (other than harsh or rough cotton of less than
3/4 inches in staple length and Ghiefly used in the manufac
ture of blankets and blanketing, and other than linters), was
filled on September 20, 1946, at the opening hour of the quota
period ending September 19, 1947*
The quota of 69,627 pounds of British Indian cotton card
strips and comber wastes made from cottons of less than 1-3/16
inches in staple length, lap w a s t e , sliver waste, and roving
waste, whether or not manufactured or otherwise advanced in
value was also filled at the opening hour or September 20.
The collectors of customs in whose districts entries of
such cotton yfend cotton waste were presented at 12 noon E.S.T.
or its equivalent on September 20 have been authorized by the
Bureau of Customs to permit release of 99*2883 peiq centum of
each entry of Mexican cotton, 49*4442 per centum of each entry
of Brasilian cotton and 68.314 per centum of each entry of
British Indian cotton waste which amounts exhaust such quotas
for the current quota year*
oOo
TREASURY DEPARTMENT
Tashingtan
Press Sernos
FOR IMMEDIATE PLEASE,
Ç** fi
f&e Secretary of the Treasury today announced the final subscription
maâ allotment
figures with respect to the current offering of 7/8 percent
Treasury Certificates of Indebtedness of Series ¿-19k? • Subscriptions for
amounts up to and including $2£,000 «ere allotted in full sad amounted to
$37,877,000.
Subscriptions and allotments sere divided among tbs several Federal
Reserve Districts and the Treasury as f o l l o w
Federal Reserve
District______
Total Subscrip
tions Received
Total Subscrip
tions Allotted
Boston
les York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago ijp
St. IíÉNÍAS/
Minneapolis
gansas City
I
I
101,781»,000
1,796.8*7,000
70.503.000
159.856.000
*6,035,000
7*.979,ooo
376.095.000
,*
San Trocisco
Treasury «
sau.
*5,*58,000
792*9*7,000
32.075.000
72.199.000
21.683.000
3*.725,000
171.303.000
.
61 ,
710,000
»,
122,000
66 8*.000
32 286.000
67.117.000
128.664.000
61,03k,000
251,389,000
2.378,000
3*.*52,000
111.509.000
1,053,000
83,203,1*5,000
n , *39,522,000
treasury
department
Washington .FÖR;
•IMMEDIATE RELEASE,
Monday, September 30» 1946»
Press Service
Ho. 'S-.93
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
o f 'Series J-1947*
Subscriptions for amounts up to and includ
ing $ 25,000 were allotted in full and amounted to $37,877,000.
Subscriptions and allotments were divided among the
several Federal Reserve Districts and the Treasury as follows:
Federal Reserve
District
Total Subscrip
tions Received
Boston
Lew York
Phila d elphia
Cleveland
Richmond
Atlanta'
Chicago
St. Louis
Minneapolis:
Kansas City
'Dallas
San Francisco
Treasury
101, 784, 000
796, 827, 000
70, 503, 000
159, 856, 000
46, 035, 000
74, 979, 000
376, 095, 000
66, 484, 000
6 7 ,117, 000
128, 664 ,000
61, 034, 000
251, 389, 000
. 2 ,378, 000
?0 TAL
203, 1.45, 000
oOo
Total Subscrip
tions Allotted
f;
45,458,
792,947,
32,075,
72,199,
000
000
000
000
2 1 ,683, 0 0 0
34,725, 00 0
171,303, 00 0
32, 286, 000
34,452, 000
61 , 710 , 000
28,122, 000
111,509, 000
1,053, 000
-,¿380 ,522,000
- 29
e ffo r t
t o p r o v id e
la r g e r e v e n u e s.
M oreover, th e t e r r i f i c
w ar s t i m u l u s o p e r a t e d t o p r e v e n t e r r o r s fr o m h a v i n g a
s e r io u s o v e r - a ll
p re se n t.
e ffe c t.
The ta s k
is
no l o n g e r
o f k e e p in g o u r eco n o m y r u n n in g a l o n g
a t a c o n tin u e d h ig h l e v e l
c a r e and p r e c i s i o n .
ta x a tio n -
B u t t h a t s tim u lu s
i n p e a c e t im e r e q u i r e s f a r m ore
The c h a lle n g e to
th o s e c o n ce rn e d w ith
i n o r o u t s i d e o f G o v e rn m e n t -
is
th u s c l e a r .
S t r a ig h t fo r w a r d , h o n e s t t h in k in g and s te a d y c o o p e r a tio n
are v it a lly
n ecessary
n a tio n a l w e ll-b e in g .
if
ta x p o lic y
is
to
c o n tr ib u te
to
28
-
-
C o n c lu s io n
The t o p ic s
m e n tio n e d c o v e r m ost o f t h e
i s s u e s w h ic h we f a c e t o d a y ,
o f r a t e s an d e x e m p t io n s .
to
th e
a ls o
in c o m e t a x ,
fa c e
c r itic a l
im p o r t a n t t a x
a s i d e fr o m t h e o v e r - a l l p r o b le m
I h ave c o n fin e d th e d is c u s s io n
'V ;
th o u g h t h e o t h e r F e d e r a l t a x e s w i l l
r e -e x a m in a tio n
i n t h e n e x t fe w y e a r s .
Thus t h e T r e a s u r y , w ith th e a id
o f a n A d v i s o r y C o m m it t e e ,
fo r
som e t im e h a s b e e n s t u d y i n g
th e need f o r
th e
e sta te
an d g i f t
in c o m e t a x .
in th e
fie ld
ta x e s and t h e ir
The e x c is e
ta x e s are
o f th e
e x te n s io n o f e x i s t i n g
th e T r e a s u r y , a l s o
C o m m it t e e ,
is
In t h e S o c i a l
e n te re d
in to
to
th e
S e c u r ity
a c o n s id e r a tio n
t a x e s t o new a r e a s -
e m p lo y e d , f a r m e r s a n d d o m e s t i c s .
is tr a tio n ,
r e la tio n s h ip s
of
l i k e w i s e b e i n g e x a m in e d
l i g h t o f p o stw a r c o n d it io n s .
th e C o n g re ss h a s a lr e a d y
r e v is io n
In th e f i e l d
th e
s e lf-
o f t a x a d m in
w ith th e a id o f an A d v is o r y
s t u d y i n g t h e c h a l l e n g i n g p r o b le m p r e s e n t e d b y
ou r p re se n t p ro ced u re fo r
th e a d ju d ic a t io n
o f fe d e r a l
ta x
in d ic a te
th a t
cases.
T h is b r i e f d is c u s s io n
is
s u ffic ie n t
to
t h e t a x p r o b le m s o f p e a c e a r e n u m e ro u s a n d v a r i e d a n d d i f f i
c u lt.
le
h a d t o u g h t a x p r o b le m s t o f a c e
d u r in g th e w ar.
T h o s e p r o b l e m s , h o w e v e r , w ere c o n c e n t r a t e d
i n t h e tr e m e n d o u s
- 27 on a yearly basis as seriously to weaken the role of the
tax as an instrument of fiscal policy.
Here, as elsewhere,
careful study of the competing factors must precede any
basic change.
Income From Sources Abroad
Huch of the hope for peace in the future rests upon
the ability of the nations to conduct trade with each other.
This goal requires a re-examination of our tax laws to
ascertain their effect on international trade.
We should
recognize that through reciprocal conventions to prevent
international double taxation much has already been aecomplishe'd to eliminate obstacles to such trade.
We have con
cluded tax conventions with Great Britain, Canada, Sweden
(last not yet ratified)
and France/and have undertaken discussions for similar
the Union of South Africa,
conventions with/Holland, Belgium and Luxembourg. However,
in other respects we have proceeded without adequate analy
sis of all the factors involved, as witness perhaps the
provision dealing with western hemisphere corporations.
-In recognition of this, the Treasury, in conjunction with
the Staff of the Joint Congressional Committee, has under
taken a study of the problems of taxpayers with income from
sources abroad to determine the proper application of the
Federal tax system to such income.
- 26 should be even broader and apply at all levels and to all
incomes.
One such suggestion, for example, is to average
the income over a period of years, to recompute the tax
in each of the years on the basis of such average income
but at the rates and exemptions of such year and to refund
any excess.
Averaging proposals of any kind raise many questions,
perhaps the least of which is the difficulty of selecting
a period of time over which the averaging should take place.
While proposals have been made to average over periods vary
ing in length from three years to a lifetime, in the final
analysis the period selected will depend on practical con
siderations.
Chief among such considerations is the degree
of complexity which an averaging procedure over a long period
would entail, since we cannot jeopardize the simplicity
achieved in recent years in the computation and collection
of tax liabilities.
More difficult questions relate to the
effect of averaging on currency of tax payments and the
related fiscal flexibility of the income tax.
Averaging
undoubtedly has attractive equity considerations in individ
ual cases.
But in the aggregate it may so blunt the present
sensitivity of the income tax provided by current tax payment
- 25 of business losses and the limited proration of compensa
tion and other forms of income under the conditions of
section 107.
It is clear, however, that these provisions
meet only part of the problem.
Accordingly, the possibilities of extending the prin
ciples of averaging will undoubtedly be considered in con
nection with post-war tax revision.
One suggested approach
is through longer carryovers of business losses.
In part,
two-year
such extension of the/loss carryforward would be a replace
ment of the two-year carryback which has proved defective
in a number of respects; in addition, it would be a recog
nition that a longer period, say five years, is necessary
to more efficient functioning of such a carryforward.
To
aid income from non-business sources, the proposal has been
made to allow a carryforward of unused personal exemptions.
Thus, where the income of an individual fell in any year
below his personal and dependent exemption level, the unused
part of such exemption could be carried over and offset
against the taxable income of a later year. This procedure
would, of course, aid only those families whose incomes
fell below the exemption levels.
While there are millions
of such families, some have felt that the averaging procedure
-
24 -
M any o f t h o s e who s t r e s s
th e r o le
o f e x e c u tiv e
e ffo r t
i n p r o v i d i n g a d y n a m ic econ om y r e c o g n i z e t h e d i f f i c u l t y
of
s o c h o o s i n g b e tw e e n v a r i o u s T y p e s o f e c o n o m ic a c t i v i t y .
They r e c o g n iz e a ls o
t h a t many o f t h e e x e c u t i v e s
r e c e i v e b o t h fo r m s o f in c o m e .
gen eral
ta x r e d u c tio n
T hey c o n s e q u e n tly u rg e a
in th e u p p er b r a c k e t s .
So v ie w e d
t h e p r o b le m o f e a r n e d In co m e r e l i e f m e r g e s i n t o
and d i f f i c u l t
in v o lv e d
p r o b le m o f p r o d u c i n g a r a t e
th e b road
stru ctu re
t h a t both
provides the best economic results and
/ is
e q u ita b le a t a l l
le v e ls .
W h e th e r o r , n o t t h a t b e t h e
e v e n t u a l o u tc o m e o f t h e p r e s e n t d i s c u s s i o n o f e a r n e d
in c o m e d i f f e r e n t i a t i o n
d is c u s s io n
th e
is
w ill a t
fro m t h e
le a s t
in c e n tiv e
s e rv e to
r o le p la y e d b y r e c i p i e n t s
stre s s
s ta n d p o in t,
th e
th e
im p o r t a n c e o f
o f s u c h in c o m e .
Such s t r e s s
p e r h a p s n e c e s s a r y t o p r e v e n t t h o s e who a r e c o n c e r n e d
.w i t h
e l i m i n a t i n g t h e d o u b le t a x a t i o n
tip Jfflf^ T h e
s c a le s
to o f a r
in
o f d i v i d e n d s fr o m
f a v o r o f u n e a r n e d in c o m e .
A v e r a g in g
A t a t im e when many b a s i c
a re under s c r u tin y ,
it
is
c o n ce p ts o f th e
n o t s u r p r is in g
th a t th e co n cep t
o f t h e a n n u a l a c c o u n t i n g p e r i o d m ust d e f e n d
a fu tu r e
i n o u r b r a v e new t a x w o r ld .
its
Thus f a r ,
c o m in g s o f t h e y e a r l y p e r i o d h a v e r e c e i v e d
tio n
in c o m e t a x
r ig h t to
th e s h o r t
lim ite d
r e c o g n i
and c o r r e c t io n th ro u g h th e c a r r y b a c k and c a r r y fo r w a r d
- 23 h ig h t a x
tio n
ra te s
le a v e to o s m a ll an in c r e a s e
a s a n e x e c u t i v e c li m b s t h e b u s i n e s s
o ffic ia l
t o / p r e s id e n t Jo f th e com pany.
t o o many e x e c u t i v e s w i l l
run gs
fo r e g o
i n n e t c o m p e n sa
l a d d e r fr o m
le s s e r
As a co n se q u e n ce,
fu r th e r
in v o lv in g h eavy r e s p o n s i b i l i t i e s
c l i m b i n g when t h e
are
reached .
I n c o n s i d e r i n g t h e p r o b le m o f e a r n e d in c o m e a t t h e s e
h ig h
le v e ls
r e la tio n
we m u st r e c o g n i z e ! ,
to fa m ily
in c o m e ,
as d is c u s s e d
th a t a s a la r ie d
a d i s t i n c t d is a d v a n t a g e r e l a t i v e
u n e a r n e d in co m e t h r u h i s
h is
fa m ily .
to
in a b ility
th e
to
e a r lie r
in
e x e c u tiv e
is
at
r e c ip ie n t o f
s p lit
h is
s a la r y w ith
A d o p t io n o f u n i v e r s a l c o m m u n ity p r o p e r t y w o u ld ,
o f c o u r s e , p r o v id e a la r g e m easu re o f r e l i e f
e x e c u t iv e s - a s lo n g a s th e y a r e m a r r ie d .
beyond t h is
o b v io u s d i s c r i m i n a t i o n ,
d iffic u lt.
E x e c u tiv e c a p a c it y
fo r su ch
B u t when we p a s s
t h e p r o b le m
is
fa r
more
i s u n d o u b t e d ly a s c a r c e com
an y earned income
m o d ity .
B u t t h e am o u n t o f/fcfe* t a x s t i m u l u s m u st n e c e s s a r i l y
b e m i ld du e t o
e s p e c ia lly
reven u e c o s t a l l
a t th e
lo w e r e n d .
It
a lo n g th e s a la r y
is
fa r
fr o m c l e a r t h a t
a w eak s t i m u l u s w i l l p r o d u c e a n y a p p r e c i a b l e
s u p p ly o f e x e c u t i v e s .
c u lty ,
everyon e
to be v a l i d
lik e s
M o re o v e r, p a s s in g to
to be s t im u la t e d .
in c r e a s e
and
such
in th e
a n o th e r d i f f i
T h e r e do n o t a p p e a r
gro u n d s to p r e fe r th e e x e c u t iv e
when we w h e e l o u t t h e t a x p u l m o t o r .
s c a le ,
o ver th e
in v e s to r
-
age;
an a v e r a g in g d e v ic e
is
22
a acre d ir e c t
s o lu tio n
to
th e
p r o b le m o f f l u c t u a t i o n .
B e f o r e we a t t e m p t t o c h o o s e b e tw e e n t h e s e c o n t e n d i n g
a rg u m e n ts? we m u st b e c e r t a i n
d iffe r e n tia tio n
t h a t a ( d e c is io j) in fa v o r o f
w i l l b e fo llo w e d b y th e a d o p tio n o f a c r e d i t
th a t does a c t u a lly
so d i f f e r e n t i a t e .
For i f ,
m o tiv a te d by
th e n eed f o r c o n tin u e d s i m p l i f i c a t i o n o f o u r b a s ic t a x
s t r u c t u r e , w e f d e e i d e t h a t a v o i d a n c e o f c o m p l e x i t y dem ands
th a t a l l
e ffo r ts
in c o m e u p t o $ 5 0 0 0 b e r e g a r d e d a s
e a rn e d , th e
s p e n t on s u c h a c h o i c e b ecom e m e a n i n g l e s s .
The
b u l k o f e a r n e d in c o m e w o u ld s i m p ly r e m a in u n d i f f e r e n t i a t e d .
Many r e p r e s e n t a t i v e s o f w age e a r n e r g r o u p s a p p e a r t o
n iz e
th a t
s u c h a r e s u l t m ig h t a p p e a r a t t h e e n d o f t h e
e a r n e d in co m e c r e d i t
ro ad and h ave a c c o r d in g ly
o th e r g o a ls ,
in c r e a s e d e x e m p tio n s ,
to
recog
such a s
stre sse d
in t h e ir e f f o r t s
ea se t h e ir ta x b u rd en .
S u c h an a t t i t u d e
le s s e n e d d is c u s s io n
on t h e p a r t o f
o f th e o v e r - a ll
la b o r h as n o t ,
p r o b le m .
how ever,
For r e c e n tly
t h e e a r n e d in co m e c r e d i t h a s b e e n g i v e n a d i n n e r j a c k e t a n d
in tr o d u c e d to h ig h s o c i e t y .
R e p r e s e n t a t iv e s o f b u s in e s s
e x e c u t i v e s h a v e u r g e d s u c h a c r e d i t a s a much n e e d e d m eth o d
o f s tim u la tin g
in c e n t iv e s to w ork.
It
is
co n te n d e d t h a t
21
-
-
have u rg ed th a t th e p e c u lia r it ie s
r e q u ir e
it
o f s u c h e a r n e d in c o m e
t h a t some a d ju s t m e n t b e made i n
c a n b e sw e p t i n t o
w it h o t h e r fo r m s o f
c o n te n tio n
th e r a te
in c o m e .
th a t d o lla r s
its
am ount b e f o r e
s t r u c t u r e on an e q u a l b a s is
T h e a r g u m e n ts s u p p o r t i n g t h i s
o f e a r n e d in c o m e r e a l l y
rep resen t
a lo w e r n e t t h a n an e q u a l am ou n t o f d o l l a r s
o f u nearned
in c o m e a r e :
c o s t s w h ic h
a w age e a r n e r h a s e x t r a l i v i n g
a re n ot d e d u c tib le
f o r t a x p u r p o s e s ; he i s
n o t a l lo w e d a
d e p r e c ia t io n d e d u c tio n to b u i l d up a c a p i t a l
d e c li n i n g y e a r s w h ereas th e
fu n d f o r h i s
r e c i p i e n t o f u n e a r n e d in c o m e
h as su ch a fu n d ,
th e re b y in c r e a s in g h is c a p a c ity
to p ay;
earn ed
s u b je c t to g r e a te r f lu c t u a t i o n ,
yet
in c o m e i s
d o e s n o t have th e b e n e f it o f th e a v e r a g in g e f f e c t s
c a r r y o v e r s g r a n te d to b u s in e s s
d e n ie d t h a t t h e t a x
in c o m e ta x
th e t o t a l
le v e ls .
e x is t,
It
is
is
and th e r e b y t r e a t e d
fa r
it
is
p r o g r e s s iv e
in co m e
r a t e o f t a x on u n e a r n e d in c o m e
a sse rte d
in c o m e s h a v e s p e c i a l
an ce s y ste m i s
lo s s
in c o m e p r e d o m in a t e s a t t h e h i g h e r s u r t a x
a ls o
th e c r e d it
In r e s p o n se
t a x s t r u c t u r e w ith i t s
t h a t ty p e o f
of
s y s te m d i s c r i m i n a t e s a g a i n s t e a r n e d
r a t e s p la c e s a h ig h e r
s in c e
in c o m e .
it
th a t
if
d is c r im in a tio n
a p o o r way t o m eet i t .
If
does
earn ed
c o s t s t h e y s h o u ld b e made d e d u c t i b l e
d ir e c tly ;
m ore l i k e l y
p e r fe c tio n
o f a s o c ia l
in s u r
to p r o v id e f o r a s e c u r e o ld
-
20
-
b u rd e n , w i ll have to be s tu d ie d b e fo r e th e p o s s i b i l i t i e s
o f s u c h n a tio n w id e
fa m ily
in c o m e s p l i t t i n g
as a s o lu tio n
in co m e p r o b le m c a n b e f i n a l l y
to
th e
d e te r m in e d .
E a r n e d In co m e
I n a n y e x a m i n a t i o n o f t h e b a s i c e le m e n t s o f a p e a c e
t im e t a x
s t r u c t u r e , t h e t r e a t m e n t o f e a r n e d in c o m e m e r i t s
c o n s id e r a tio n .
Her© a p a g e o f h i s t o r y
v id e a c o n t r a d ic t io n r e la te d
up to
s e r v e s o n ly to p ro
a n e a r n e d in c o m e c r e d i t t h a t n e i t h e r
t o e a r n e d in c o m e n o r w as a r e a l
$ 3 0 0 0 was p re su m e d t o b e e a r n e d ;
$ 1 4 ,0 0 0 p re su m e d t o b e u n e a r n e d .
c r e d it. A ll
a ll
For th e
in c o m e
in co m e o v e r
in co m e b e tw e e n
$3# 0 Q 0 a n d $ 1 4 ,0 0 0 t h e maximum am ou n t o f c r e d i t w as m e r e ly
$84.
E x is t in g o n ly to p ro d u ce c o m p lic a t io n s , th e c r e d i t
was e l i m i n a t e d
th is
in
1943.
We m u s t ,
in o u r c o n s id e r a t io n o f
s u b j e c t , a t t e m p t t o d i s c o v e r w h e th e r s u c h p r e v i o u s
tre a tm e n t r e p r e s e n ts a f a i l u r e
t o g r a p p l e w i t h t h e p r o b le m
or a ta c it
th e f i n a l a n a l y s i s o n ly
s e r v ic e
e n tia l
r e c o g n itio n th a t
can in
in
r e a l i t y b e a c c o r d e d to
id e a o f a d i f f e r
t r e a t m e n t o f e a r n e d in c o m e .
U n til
r e c e n t ly , b o th
in t h i s
c o u n tr y and a b r o a d ,
p r o b le m was v ie w e d a s on© a f f e c t i n g
a te
th e
lip
s a la r y
earn ers.
In t h i s
th e
w age e a r n e r s a n d m oder
a r e a p ro p o n e n ts o f th e c r e d i t
- 19 fa m ilie s
r e c e iv in g
e a r n e d in c o m e a n d t h o s e p o s s e s s i n g
i n v e s t m e n t in c o m e .
h ig h ly
in e q u ita b le
T h ese d is c r im in a t io n s d o lla r w ie e a r e
a t p resen t ta x
ra te s.
Ju d ic ia l
g u a r d s d e v is e d t o p r o t e c t th e p r o g r e s s iv e
p r o v id e d a r a t i o n a l
s o lu tio n s
sy ste m .
o r p er c a p ita d iv is io n
le v e l
o f th e f a m ily ,
d iv is io n
a r e m a n d a to r y j o i n t
th e
la tte r
s o lu tio n
fe a s ib le .
to th e tre a tm e n t o f s in g le p e r s o n s ,
may p e r h a p s i n v o l v e
fa v o r o f th e fa m ily u n i t .
tio n
so c r e a t e d
m e n t.
is
t h e p r e s e n t a d m itte d
it
C o n s id e r e d
r e la tiv e
th e a d o p tio n o f t h e p e r
some d i s c r i m i n a t i o n
in
o f p o s i t i v e p r o o f and m easure
does n o t ap p ear to be a s s e r io u s as
i n e q u a l i t i e s am ong m a r r ie d c o u p l e s .
litig a tio n
w e ig h t h e p o s s i b l e
At th e
o f per c a p ita
T h e d o u b le n e e d o f e l i m i n a t i n g b o t h t h e s e
th e e x c e s s iv e
re tu rn s
But th e e x te n t o f th e d is c r im in a
d iffic u lt
A t any e v e n t ,
le g is la tiv e
b e tw e e n h u s b a n d a n d w i f e .
ap p ears p o l i t i c a l l y
c a p ita ) s y s te m
s u r ta x have not
The a l t e r n a t i v e
to th e se d i f f i c u l t i e s
s a fe
i n e q u a l i t i e s and
t h e y p ro m o te w o u ld a p p e a r t o o u t
c la im s o f s i n g l e p e r s o n s .
T h is and o th e r
p r o b le m s ,
su ch a s th e tre a tm e n t o f c h ild r e n
fa m ilie s ,
t o g e t h e r w ith t h e e f f e c t o f p e r c a p i t a d i v i s i o n
on t h e
reven u e y ie ld
and th e d i s t r i b u t i o n
and head s o f
o f t h e in co m e t a x
in te r n a l
d is tr ib u tio n o f
IS -
in c o m e .
W h e th e r m a r r i e d c o u p l e s
w o u ld p a y m ore d o l l a r s u n d e r a m a n d a to ry
or under a per ^ a p l ^ ) d iv is io n
d e p e n d s on t h e
a d o p te d a f t e r one o r th e o t h e r sy ste m
e r a tio n
is
re tu rn
ra te
s y s te m
s tru ctu re
s e le c te d .
C o n s id
o f t h e s e tw o a l t e r n a t i v e s fr o m t h e a s p e c t o f t h e
p rop er ta x
s in g le
jo in t
lia b ility
p erson s
o f m a r r ie d c o u p le s r e l a t i v e
to th a t o f
l i k e w i s e d o e s n o t p r o v i d e u s w it h a n y s i g n i f
ic a n t p r e fe r e n c e f o r one sy ste m o v e r th e o t h e r .
It
is
lik e ly ,
th e r e fo r e ,
t h a t t h e c h o i c e w i l l b e made
o n t h e b a s i s o f a r g u m e n ts d e r i v e d fro m h i s t o r y ,
a n d fr o m e m o t io n s .
S u c h a r g u m e n ts w o u ld seem t o p o i n t
th e d ir e c t io n o f th e p er c a p it a
I m ig h t c l o s e
a sum m ary l a r g e l y
fr o m p o l i t i c s ,
in
sy ste m .
t h i s b r i e f d i s c u s s i o n o f t h e p r o b le m w it h
q u o t e d fr o m t h e N a t i o n a l T a x A s s o c i a t i o n
add ress:
The p r e s e n t tr e a tm e n t o f fa m ily
to
i n d i c t m e n t on a t
fe r tile
le a s t
tw o s e r i o u s c o u n t s .
b r e e d in g g ro u n d o f c o s t l y ,
l i t i g a t i o n ,.
It
is
s a d ly
in c o m e i s v u l n e r a b l e
la c k in g
d iffic u lt
It
a
an d w a s t e f u l
in t a x e q u it y ,
_____ _
is
s in c e
it
i n v o l v e s b o t h I d e o g r a p h i c a l d i s c r i m i n a t i o n b e tw e e n f a m i l i e s
1 \
in
f
c o m m u n ity p r o p e r t y ' s t a t e s
p ro p e rty s t a t e s ,
and th o s e
and q u a li t a t i v e
i n n o n -c o m m u n ity
d i s c r i m i n a t i o n b e tw e e n
- 17 su ch d e v ic e
is
a s y s te m
o f m a n d a to ry
w as c o n s i d e r e d b y C o n g r e s s i n
d e fe a t.
jo in t
re tu rn s,
19^1 a n d 19^2 a n d m et w i t h
I i . c o u l d n o t s t a n d a g a i n s t some o f
h u r le d a g a in s t
it
—
T h is
s la v e r y ,
th e
b r e a k in g up o f h o m es, th e e n co u ra g e m e n t o f d i v o r c e ,
th e
p r o m o t io n o f l i v i n g
A n o th e r d e v ic e
r e d u c t i o n o f women t o
th e c h a r g e s
in s i n .
is
t o m ake t h e s p l i t t i n g
in c o m e n a t i o n w i d e . T h e f e d e r a l t a x
In co m e o f h u s b a n d a n d w i f e
liv in g
o f fa m ily
law w o u ld t o t a l
to g e th e r,
d iv id e
th e
th e
t o t a l b y t w o , c o m p u te t a x on t h e r e s u l t i n g am ou nt w it h a
s in g le
p erson ^
e x e m p t io n .
T h e t a x so c o m p u te d w o u ld t h e n
b e d o u b le d t o p r o v i d e t h e t o t a l t a x o f t h e m a r r ie d c o u p l e .
_
^
, The r e s u l t
in b r i e f
is
a u n iv e r s a liz e d eq u al s p lit t in g
of
in c o m e b e tw e e n h u s b a n d a n d w i f e w h ic h w o u ld e q u a l i z e t h e
t r e a tm e n t o f m a r r ie d c o u p le s
r e g a r d le s s o f th e c h a r a c te r
I n c o n s i d e r i n g t h e c h o i c e b e tw e e n t h e s e tw o m e th o d s ~
m a n d a to ry j o i n t
re tu rn s or p er c a p ita d iv is io n
b e tw e e n
h u s b a n d a n d w i f e - we m u st r e c o g n i z e t h a t a s b e tw e e n
m a r r ie d c o u p le s a t an y l e v e l
d is c r im in a tio n .
The ta x
in
e i t h e r m eth o d w o u ld e l i m i n a t e
e i t h e r c a s e w o u ld b e t h e
f o r e v e r y m a r f i e d c o u p le a t t h a t
le v e l
same
r e g a r d le s s o f th e
- 16 23$
a t t h e $ 2 5 ,0 0 0 l e v e l ,
sh o rt,
2 0 * a t t h e $ 1 0 0 ,0 0 0 l e v e l .
m id d le b r a c k e t c o m m u n ity p r o p e r t y c i t i z e n s
fe d e r a l
ta x h o lid a y a t
le a s t
every f i f t h
I q u a lly s e r io u s d is c r im in a tio n s
In
have a
year.
e x i s t am ong f a m i l i e s
i n n o n -c o m m u n ity p r o p e r t y S t a t e s . T h e r e f a m i l i e s w i t h
in c o m e fr o m p r o p e r t y o r in v e s t m e n t s may a c h i e v e
in c o m e
s p littin g
s u c c e s s fu l
th ru o u tr ig h t g i f t s ,
fa m ily t r u s t s and th e
such s p l i t t i n g
s e r v ic e s .
sta te s
in
B u t th e c o u r t s h av e b lo c k e d
th e ca se o f
As a c o n se q u e n c e ,
in c o m e fr o m t h e h u s b a n d * s
i n n o n -c o m m u n ity p r o p e r t y
t h e d i s c r i m i n a t i o n s b e tw e e n s u c h m a r r i e d c o u p l e s
w h ose in c o m e i s
in
lik e .
jo in t te n a n c ie s ,
fr o m p r o p e r t y a r e a l s o
t h e d im e n s io n s d e s c r i b e d e a r l i e r
p ro p e rty .
In o t h e r w o r d s ,
year,
e a r n i n g s m ust s t i l l
is
liv in g
its
in c o m e e q u a l l y b e tw e e n
le a s t every f i f t h
on a s a la r y o r p r o f e s s io n a l
w ork f o r U n c l e Sam .
o b v io u s t h a t t a x d i s c r i m i n a t i o n s o f su c h p r o
p o r t i o n s am ong f a m i l i e s
e lim in a te d a s
ca n n o t be d e fe n d e d .
T h ey may b e
r e s p e c t s h u sb an d and w ife o n ly by a d e v ic e
w h ic h p l a c e s a l l
th e
r e s p e c t i n g co m m u n ity
r e c e iv e s a t a x h o lid a y a t
w h ile th e f a m ily
It
many i n s t a n c e s
t h e m id d le b r a c k e t f a m i l y w i t h
s t o c k s and b on d s t h a t h a s s p l i t
h u sb a n d and w ife
in
fa m ilie s
le g a l d iv is io n
of
on t h e
same b a s i s
r e g a r d le s s o f
in c o m e b e tw e e n t h e s p o u s e s .
One
- 15 s u rta x
ra te s,
husbands have c o n s t a n t ly so u g h t to
way o r a n o t h e r d i v i d e
th e ir
in c o m e w i t h o t h e r m em bers o f
th e fa m ily and th e r e b y re d u ce t h e i r
t h e m a jo r l i t i g a t i o n
th u s be w r itte n
in
under th e
ta x .
The h is t o r y o f
in d iv id u a l
te r m s o f t h e i r
E a r ly th e C o u rt d e c id e d
in one
in c o m e t a x may
s u c c e s s e s an d f a i l u r e s .
in L u ca s v .
E a rl th a t a s a la r y
e a r n e r c a n n o t e s c a p e t a x t h r u a s s ig n m e n t t o w ife o r c h i l d .
R e c e n tly th e p r i n c i p l e
p a r tn e r s h ip s .
In th e t r u s t f i e l d
t h e C o m m is s io n e r ,
v ic to r ie s
- as
C o m m is s io n e r .
now t o
is
w ith
its
its
th e e x is t e n c e o f th e
u n c e r ta in tie s ,
o f th e ta x
its
r e s u lts
litig a tio n
s tr a in
reduce t h e ir
on t h e a d m in
su rta x e s is
th e
s u c c e s s a c h ie v e d
H e r e t h e m a g ic
o f t h e c o m m u n ity p r o p e r t y s y s t e m , w h e th e r r o o t e d
h i s t o r y o r a d o p te d a s a t a x
th is
s p littin g
i t s e l f «*
c o n t e s t s o v e r th e a tte m p ts
b y r e s i d e n t s o f c o m m u n ity p r o p e r t y s t a t e s .
t h r u a u to m a tic f a m ily
of a ll
la w s .
In sh arp c o n t r a s t t o th e s e
o f hu sban d s to
now t o
c a s e - b e in g s c o r e d by th e
B u t m ore im p o r t a n t t h a n t h e
litig a tio n
is tr a tio n
th e h o n o rs f a l l
t h e t a x p a y e r , w i t h t h e m a jo r
in th e C l i f f o r d
th is
c o sts,
o f t h a t c a s e w as e x t e n d e d t o f a m i l y
in
sta te
s a v i n g e x p e d i e n t , w o rk s w o n d ers
in c o m e -s p littin g .
The rew ard s o f
a r e h i g h - a 15# r e d u c t i o n a t t h e $ 1 0 ,0 0 0 l e v e l ,
and h en ce th e e f f o r t
to
c o n v e r t o r d in a r y
in s ta n c e s
th e
c a p ita l g a in .
r e g u la r
tru e o f
d e c is io n
I n some
c o m p lic a te d by t h e f a c t
r e l i e f o f th e
th e p re se n ce o f th a t
is
is
o r ju d ic ia l
q u e s t i o n m ig h t m e r i t some r e l i e f *
th e o v e r-g e n e ro u s
T h is
le g is la tio n
in c o m e t o
th e s it u a t i o n
in c o m e i n
th e h ig h
th ru
low r a t e
c a p ita l
g a in s
th a t
but not
ra te .
Yet
a s th e s o le a lt e r n a t iv e
r a te s fo r c e s
th e a l l
to
o r n o th in g c h o ic e .
i n s t a n c e s w h e re a v e r a g i n g w o u ld b e a f a i r e r
s o lu tio n .
T h ese a r e o n ly
v is io n s .
th e
B ut I b e lie v e th e y w i ll
im p o r t a n c e o f
tin u e d
some a s p e c t s o f t h e c a p i t a l g a i n s p r o
e ffo r ts
s u ffic e
to
illu s tr a te
t h e p r o b le m a n d t h e d e s i r a b i l i t y
o f con
t o w a r d s im p r o v in g t h e e q u i t y a n d e f f e c t i v e
n ess o f th e se p r o v is io n s .
F a m i l y In co m e
T u r n in g now d i r e c t l y
to
th e
in d iv id u a l
in c o m e t a x *
we
fin d
t h a t o n e o f t h e m o st im p o r t a n t p r o b le m s c o n c e r n s t h e
r o le
t h a t th e fa m ily
o c c a s io n
to d is c u s s
s h o u ld p l a y u n d e r t h a t t a x .
t h i s p r o b le m a t
N a tio n a l T ax A s s o c ia t io n .
fa m ilia r
th e
to yo u .
in c o m e i n
T y p ic a lly
I had
le n g th b e fo r e th e
I a® s u r e t h a t t h e o u t l i n e s a r e
it
th e fa m ily g ro u p .
is
t h e h u s b a n d who p o s s e s s e s
U nder t h e p r e s s u r e o f
- 13 t h e m o t io n p i c t u r e b u s i n e s s a n d o r g a n i z i n g t h e i r own
c o m p a n ie s , w i t h -
we s u s p e c t -
v e r t i n g o r d i n a r y c o m p e n s a t io n
in g to
at
in to
in
c o r p o r a te s u r p lu s e s th ro u g h a c t u a l
d o lla r s u ltim a te ly
A s p e c ia l
be a d e s ir a b le
cern ed —
in tr ic a te
c a s h o u tg o b u t
g a i n s t a x on t h e e q u i v a l e n t
lo w r a t e o n c a p i t a l g a i n s may o r may n o t
th in g
in s o fa r a s th e
s to c k m arket i s
is
w ith e q u a l
an o b s t a c le
u n s a tis fa c to r y
in te n s ity ,
to
in c o m e a f t e r
s e c u r itie s
s u b je c t,
it
But
r e g a r d le s s o f o n e 's
seem s c l e a r t h a t a m a r k e d ly
c o n s id e r a tio n s h as u n d e s ir a b le
if
th e
c a p it a l g a in
to e s c a p e h ig h t a x
ra te s
is
O th e rs
t r a n s a c t i o n s w h ic h in d u c e s
lo w e r r a t e on c a p i t a l g a i n s a d o p t e d f o r
In s h o r t ,
ta x e s
t h a t a n y t a x on c a p i t a l g a i n s
m arket c o n d it io n s .
on t h i s
Some
e n c o u r a g e s p e o p le t o b u y s e c u r i t i e s
e a s i e s t way t o make a l a r g e r n e t
p o s itio n
con
here^ t o o ^ t h e r e a r e d i f f e r e n c e s o f o p i n i o n .
a n d t h u s c a u s e s o r s t i m u l a t e s s t o c k m a r k e t b o o m s.
fe e l,
P roceed
r e c e iv e d b y th e s t o c k h o ld e r s .
t h a t a lo w r a t e
a s th e
g a in .
r e c a p i t a l i z a t i o n s d e s ig n e d t o p ro d u c e a r e d u c
t h e sam e t im e o n l y a c a p i t a l
fe e l
c a p ita l
m ore c o m p l i c a t e d a r r a n g e m e n t s , we f i n d
c o rp o ra te
tio n
t h e c h i e f m o t iv e o f c o n
to
e ffe c ts
ra te
is
la b e l
s u c h in v e s t m e n t
on o t h e r s i t u a t i o n s .
fa r
l o w e r , t h e way
in c o m e a s
" c a p ita l
g a in *
12
-
C a p it a l G a in s and L o s s e s
Among b u s in e s s m e n a n d o t h e r s
even c o r p o r a tio n t a x e s o f t e n
in te r e s te d
in t a x a t io n
ta k e seco n d p la c e to
th e
p r o b le m o f c a p i t a l g a i n s a n d l o s s e s a s a s u b j e c t f o r
c r i t i c a l d is c u s s io n ,
h a v e fe w e q u a ls
in
t h e c a p i t a l g a i n an d l o s s p r o v i s i o n s
t h e la w i n s o f a r a s f r e q u e n t c h a n g e o r
gen eral d is s a tis fa c tio n
is
th a t
p o lic y
c a p ita l
is very
is
con cern ed .
One r e a s o n f o r
g a i n s c o v e r s o many f i e l d s
lik e ly
to
th a t any g e n e ra l
I n v o l v e some u n s a t i s f a c t o r y a s p e c t s .
One s u c h a s p e c t u n d e r t h e p r e s e n t f a v o r a b l e
g a in s
th e
ra te -
c e r t a in ly h ig h ly
r e g u la r ta x
ra te s -
a c t i o n s ,o r d i n a r i l y
th a t th e y w ill
v is io n .
s p e c ia l
ra te ,
ta x
ra te
is
fa v o r a b le
c a p ita l
i n c o m p a r is o n t o
t h e t e m p t a t i o n t o fr a m e t r a n s
r e s u ltin g
in f u l l y
ta x a b le
in c o m e *
la w p r o v i d e s a " b a s k e t* * o f f e r i n g a
e x e r c is e
of
u n d e r s ta n d a b le .
th a n th e g e n e r a lly p r e v a ilin g
i n g e n u i t y t o com e w i t h i n
T h u s we f i n d
e m p lo y e e
c o m p e n s a t io n a r r a n g e m e n t s fr a m e d i n te r m s o f o p t i o n s
buy s t o c k
in th e
e m p lo y e r c o r p o r a t i o n
s p r e a d on t h e s e c u r i t i e s
c a p ita l
g a in .
so
w ith in th e c a p i t a l g a in s p ro
lo w e r b y f a r
a ta x p a y e rs
th a t b asket
is
in s te a d f a l l
W here t h e
th is
S im ila r ly ,
in
to
th e hope t h a t th e
so o b t a i n e d may b e t r e a t e d a s
we s e e m o v ie s t a r s
g o in g
in to
-11
-
d e p r e c i a t i o n w o u ld d i s t o r t a c o r p o r a t i o n ^
th a t a t
le a s t
im m e d ia t e ly i t
in c o m e p i c t u r e ,
m ig h t c o s t t h e G o v e rn m e n t
s u b s t a n t i a l a m o u n ts o f r e v e n u e , a n d t h a t t h e o v e r - a l l
s u c h a p r o v i s i o n w o u ld h a v e o n in v e s t m e n t i s
c le a r .
m e n t,
M oreover,
it
d u c tio n .
if
t h e e f f e c t w ere t o
en cou rage in v e s t
A t p r e s e n t su ch encouragem en t i s
in c e n tiv e q u a lit ie s
e x e m p t fr o m
t a x p r o b le m r e l a t e s
r e c o n s id e r a tio n
in
101 s h o u ld r e c e i v e
o th e r
th e
to c o r p o r a tio n s
101 o f t h e
T h e s e e x e m p t io n s h a v e b e e n
many y e a r s a n d l i k e
n o t n eeded and
s e r v e t o w a s t e a d e v i c e w hose
in c o m e t a x u n d e r s e c t i o n
R evenue C o d e .
in tr o
may b e n e e d e d i n t h e f u t u r e .
A n o th e r c o r p o r a t io n
in th e
In te r n a l
la w f o r
lo n g -s ta n d in g p r o v is io n s
lig h t
r e q u ir e
o f changed c o n d it io n s .
S e c tio n
c o m p r e h e n s iv e s t u d y , p a r t i c u l a r l y a s
r e s p e c t s t f ie c o m p e t i t i v e
ta x a b le
not a t a l l
m ig h t w e l l b e m ore d e s i r a b l e t o d e l a y i t s
i n t r o d u c t i o n t o d a y m ig h t o n l y
e ffe c t
r e la tio n s h ip
b e tw e e n e x e m p t a n d
c o r p o r a tio n s .
: ......
A ll o f th e se
of
s u b je c ts p re s e n t d i f f i c u l t
th em w i l l h a v e t o b e m e t .
made w i t h i n a n d o u t s i d e
lu tio n
It
is
p r o b le m s .
hoped t h a t s t u d ie s b e in g
th e T re a su ry w i ll a id
in th e r e s o
o f t h e w id e d i f f e r e n c e s o f o p i n i o n w h ic h e x i s t
th e se f i e ld s
a t th e p r e s e n t tim e .
A ll
in
10
-
G r e a t I n t e r e s t and d i v e r s i t y o f o p in io n
w ith r e s p e c t t o
th e t a x a t io n
t h e s u g g e s t i o n s made a r e ,
h ow ever,
is
o f s m a ll b u s i n e s s .
of course,
made f o r b u s i n e s s t a x a t i o n
g e n e r a lly .
s m a ll b u s i n e s s
s u c h a way a s t o a p p l y t o a l l
is
in
n e t w o rth , p r o f i t s ,
s id e r e d
s m a ll
T h ere is
fa c to r
or s a le s ,
s iz e ,
a fir m
F o r w h e th e r t h e
num ber o f e m p lo y e e s ,
w h ic h w o u ld b e c o n
no q u e s t i o n t h a t s m a l l b u s i n e s s
is
in a n o th e r .
a m ost im p o r t a n t
i n t h e n a t i o n * s eco n o m y an d t h a t t h e t a x
o f new e n t e r p r i s e s .
en cou rage th e b ir t h
B e f o r e m o v in g i n t h i s
m u st b e r e a s o n a b l e a s s u r a n c e t h a t
s e le c te d
w i l l a c c o m p lis h t h i s
A c c e le r a te d d e p r e c ia tio n
b een d is c u s s e d c o n s id e r a b ly
ta x a tio n .
to
in d u s tr ie s .
im p o s s ib le
te r m s a n d i n
i n o n e i n d u s t r y may b e a g i a n t
s h o u ld b e so g e a r e d a s t o
th e re
T h e p r o b le m h e r e ,
in g e n e r a l
te r m s o f a s s e t
Its
sy ste m
a n d g r o w th
fie ld ,
how ever,
th e p ro ce d u re s
o b je c tiv e .
is
a n o t h e r s u b j e c t w h ic h h a s
in c o n n e c tio n w ith b u s in e s s
p ro p o n e n ts a r g u e th e im p o r ta n c e , e s p e c i a l l y
s m a ll b u s in e s s ,
"e x p e n se ** a t
Many o f
s im ila r to th o se
f u r t h e r c o m p li c a t e d b y t h e a lm o s t
ta s k o f d e fin in g
d e fin itio n
e x is t a ls o
le a s t
o f a llo w in g an e n t e r p r is e
to ,
p art o f
T h i s v ie w
its
in v e s tm e n ts .
m u st b e w e ig h e d a g a i n s t t h e f a c t
th a t a c c e le r a te d
in
e ffe c t,
~ 9 m a in ta in in g t h a t th e c o r p o r a tio n
in d iv id u a l
g e s tio n s ,
m e n t,
to
s h a r e h o ld e r .
b a se d on id e a s o f e q u it y an d i n c e n t iv e t o
t a x c o r p o r a tio n s
lik e
in c o m e -
p a r tn e r s h ip s ,
ta x ,
s to c k h o ld e r s
so a s t o a llo w
to p a r t ia lly
in d e te r m in in g c o r p o r a t e
A ll o f th e se
sy ste m o f t r e a t i n g th e
So m e, s u c h a s t h e t r e a t m e n t o f
to th e c o rp o ra te
exp en se o f o th e r
in v e s to r .
b a s ic
He m u st r e c o g n i z e t h a t
some who h a v e o f f e r e d
s u g g e s tio n s a r e
t o b e b e s t f o r t h e eco n o m y a s
one gro u p s e e k in g t a x
grou p s.
a r e a o f d is a g r e e m e n t i s
c u s s io n
i n some i n s t a n c e s
t h e v ie w s o f o t h e r s a r e i n p a r t a r e f l e c t i o n
In te re sts ,
lik e
O t h e r s w o u ld p r o v i d e a g e n e r o u s
d i c t a t e d b y w hat t h e y b e l i e v e
s p e c ia l
in c o m e .
c o r p o r a tio n s
w o u ld c o u r t a c o m p l e x i t y t h a t
w h i l e t h e v ie w s o f
a w h o le ,
co r-
id e a s h ave t h e i r a d v a n ta g e s and d is a d
w o u ld b e ' d i s h e a r t e n i n g .
w in d fa ll
r e c e iv e d by
th e t a x p a id by th e c o r p o r
p o r a t i o n ^ t a x a s a w i t h h o l d i n g t a x on d i v i d e n d
p a r tn e r s h ip s ,
in v e s t
to ded u ct a l l
exem p t d i v i d e n d s
fo r
o r to ad o p t th e B r i t i s h
v a n ta g e s.
sug
w h ic h w o u ld b e a v a r i a n t o f t h e u n d i s t r i b
u te d p r o f it s
a tio n ,
a m ere c o n d u i t f o r t h e
B e tw e e n t h e s e e x t r e m e s a r e
o r a p a r t o f th e d iv id e n d s p a id
ta x a b le
is
One t h i n g
is
r e lie f
very
of
a t th e
c le a r -
th e
s o w id e t h a t f u r t h e r s t u d y a n d d i s
o f t h e p r o b le m s i n v o l v e d a r e n e c e s s a r y b e f o r e a n y
r e c o n s id e r a t io n o f th e c o r p o r a tio n
u n d e rta k e n .
in c o m e t a x c a n b e
~ g -
in c o m e .
B ut such a la b e l u n f a i r ly
c o lo r s
th e q u e s tio n -
t h e e m o t io n a l c o n n o t a t i o n s t a x w i s e t h a t a r e
t h e w o rd ttd o u b l e H c a n e a s i l y
are to
in h e r e n t in
th r o w u s o f f b a l a n c e .
v ie w t h e p r o b le m o b j e c t i v e l y we m u st r e c o g n i z e
t h e n a t u r e and e x t e n t o f t h e d o u b le t a x a t i o n
th is
p r o c e d u r e a r e f a r fr o m c l e a r .
e x te n t
If
t o w h ic h t h e
c o r p o r a tio n
is
th a t
in v o lv e d
in
Much d e p e n d s o n t h e
a b le
to
s h ift
to o th e r p e o p le ,
f o r e x a m p le *
a b ility
a t p r e s e n t h a rd to m e a su re .
w h ic h i s
we
its
ta x
w o rk ers o r c u s to m e rs —
m e n ts o f b u s in e s s m e n t h e m s e lv e s t h e r e a r e
an
In th e s t a t e
Im p lic it d i f f e r
e n c e s o f o p i n i o n a s t o w h ere t h e b u r d e n o f c o r p o r a t e t a x e s
fa lls .
D if f e r e n c e s o f o p in io n a s t o th e n a tu r e o r e x t e n t o f
t h e p r o b le m
r e s u lt
in a v a r i e t y ,
b u t no d e f i c i e n c y ,
p r o p o s a ls f o r ch a n g e s in th e p r e s e n t p r o c e d u r e .
o n e e x tr e m e a r e t h o s e who s a y t h a t t h e r e
a lte r n a tiv e
is
c o rp o ra te
s io n
to
A t th e
no d e s i r a b l e
to th e p r e s e n t p ro ce d u re s in c e th e c o r p o r a tio n
h a s an id e n t i t y and t a x - p a y in g c a p a c it y t h a t
and d i s t i n c t
of
fr o m t h e s t o c k h o l d e r s a n d ,
in c o m e t a x a d d s a d e s i r a b l e
th e ta x s t r u c t u r e .
who w o u ld e l i m i n a t e
is
fu r th e r ,
se p a ra te
th a t
e le m e n t o f p r o g r e s
A t t h e o t h e r e x tr e m e a r e
th e c o r p o r a tio n
th e
th o se
in c o m e t a x e n t i r e l y ,
- 7 r e t u r n s a s we d i d
th o u g h t
im p o s s ib le
stru ctu re tio n
-
in
a ll
Fed eral
19^0 -
y e t th e f i l i n g
in 19^0.
o f re tu rn s has
T h e se a d ju s tm e n ts
w ith h o ld in g , cu rre n t(ta % )p a y m e n t,
m e r i t a n d dem and a p e r m a n e n t p l a c e
in th e
ta x
s im p lific a
in th e
sy ste m .
fe
have n o t,
how ever,
s o lv e d a l l
o t h e r p r o b le m s t h a t come w i t h h i g h
p r o b le m s a r e am ong t h e
o f th e t e c h n ic a l and
le v e l
im p o r t a n t t a x
ta x a tio n .
is s u e s
T hese
t h a t m u st b e
f a c e d d u r i n g t h e n e x t fe w y e a r s .
M e n t io n o f some o f t h e s e
q u e s tio n s
may h e l p t o
u s e fu l
in th e
in c o m e t a x f i e l d
s tim u la te
d is c u s s io n and b r in g a b o u t in c r e a s e d aw aren ess o f
t h e p r o b le m s f a c i n g u s .
G e n e r a l C o r p o r a t i o n P r o b le m s
P erh ap s th e b r o a d e s t q u e s tio n
is
th e p o s it io n
to
be o c c u p ie d by th e c o r p o r a tio n
F ed eral
ta x
je c t
ta x a t th e co rp o ra te
to
p erson al
u te d to
r e q u ir in g c o n s id e r a tio n
stru ctu re .
C o rp o ra te
in c o m e i s
in th e
now f i r s t
sub
le v e l and a g a in u n d er th e
in c o m e t a x t o t h e e x t e n t t h a t p r o f i t s a r e d i s t r i b
s to c k h o ld e r s .
p re se n te d
T h e p r o b le m
in te rm s o f th e
is
th e r e fo r e g e n e r a lly
^ d o u b le t a x a t i o n ” o f c o r p o r a t e
6-
-
m ust b e p a i d .
When b u s i n e s s p r o f i t s ,
in c o m e a r e h i g h ,
w i t h o u t harm t o
If
we r e g a r d -
s a la r ie s ,
and n a t io n a l
l a r g e a m o u n ts o f t a x e s may b e c o l l e c t e d
th e
econom y o r u n d u e b u r d e n t o t h e p e o p l e .
a s we m ust -
has a tta in e d as a t
th e h ig h
le v e l
w h ic h o u r econom y
l e a s t a new p l a t e a u on w h ic h we c a n go
f o r w a r d r a t h e r t h a n a p e a k fr o m w h ic h we m u st d e s c e n d , we
m u st a l s o
re g a rd a h ig h
p a r t o f o u r s y s te m
le v e l
le m s a r i s e
ecoaom y,
ta x a tio n
it
is
n o t u n d u ly b u rd e n so m e i n a
does p re s e n t a c h a lle n g e .
th a t p re ss fo r s o lu tio n .
an in c r e a s e d im p o r ta n c e .
w e re r e d u c e d s o t h a t
grou p t o
Sew p r o b
O ld p r o b le m s t a k e o n
Some o f t h e s e p r o b le m s we h a v e
a lr e a d y fa c e d and s o lv e d .
a s e le c t
a s a perm an en t
r a t h e r th a n a te m p o ra ry phenom enon.
W h ile h i g h r a t e
h ig h
le v e l o f ta x a tio n
F o r e x a m p le , w hen e x e m p tio n l e v e l s
in c o m e t a x p a y e r s c h a n g e d o v e r n i g h t fro m
m ore t h a n h a l f t h e a d u l t p o p u l a t i o n ,
o b v io u s t h a t o u r c o l l e c t i o n
it
was
s y s te m h a d s u d d e n ly b eco m e a r c h a i c .
T h e n e c e s s a r y m o d e r n i z a t i o n w as p r o v i d e d t h r u t h e a d o p t i o n o f
th e
s y s te m
o f cu rren t
in d iv id u a l
in c o m e t a x p a y m e n t b a s e d
upon th e w ith h o ld in g t a x on w ages and s a l a r i e s
q u a r te r ly
e s t i m a t e s o f t a x on o t h e r
in c o m e .
was a m a jo r s i m p l i f i c a t i o n o f t h e b a s i c
as
it
a ffe c te d
th e a v e ra g e ta x p a y e r .
h a n d le t e n ^ i m ^ ^ a s
many t a x a b l e
and th e
A c c o m p a n y in g t h i s
in c o m e t a x
As a r e s u l t ,
in d iv id u a l
stru ctu re
t o d a y we
in co m e t a x
5-
r
o f liv in g
It
t h a t w o u ld s e r i o u s l y dam age t h e b u s i n e s s c o m m u n ity .
w o u ld condem n t o
i d l e n e s s men a n d m a c h in e s now b u s i l y
e n g a g e d in p r o d u c in g th e g o o d s n e c e s s a r y t o
dem and c r e a t e d b y t h e g e n e r a l
T h e m a in t e n a n c e a n d c o n s t a n t
liv in g
m a tc h t h e co n su m er
im p ro v e m e n t i n
e c o n o m ic w e l f a r e .
im p ro v e m e n t o f t h e p r e s e n t h i g h
sta n d a rd o f our c it i z e n s
It
is
good b u s in e s s .
is
to
s u s t a in ou r p r e s e n t h ig h
is
m ore t h a n h u m a n i t a r i a n .
F o r th e o n ly a l t e r n a t i v e
to
d e p r e s s io n
l e v e l o f p r o d u c tio n an d p u r
c h a s in g p o w er.
We m ust f i t
and t a x e s
in to
our g r e a tly
th e s e t t in g
econ om y h a s r e a c h e d .
b illio n s
in c r e a s e d F e d e r a l
o f th is
new h i g h
in c r e a s e o v e r p re -w a r
c o ll e c t i o n s , b u t th e s ig n ific a n c e o f t h i s
in
te rm s o f th e g e n e r a l
The b u rd en o f t a x e s
o f d o lla r s
c o lle c te d
is
in c o m e ,
it
as it
is
is
is
e c o n o m ic s i t u a t i o n .
a q u e s t i o n o f w h e th e r t h e
le v e l o f
ta x a tio n .
e a s ie r to pay n o t o n ly
o f t a x b u t a la r g e r p r o p o r tio n
When b u s i n e s s
in c r e a s e ca n o n ly
n o t s o much a q u e s t i o n o f t h e num ber
eco n o m y c a n s u s t a i n a g i v e n
le v e ls o f
l e v e l w h ic h o u r
P r e s e n t p e a c e - t i m e c o l l e c t i o n s o f $*K)
may seem a n a lm o s t f a n t a s t i c
be in te r p r e te d
e x p e n d itu r e s
d ep ressed ,
in ta x e s th a n a t
e v e n s m a ll t a x e s
A t h ig h
l a r g e r am o u n ts
lo w l e v e l s .
c o n s titu te
a
h e a v y b u r d e n on t h e s m a ll a m o u n ts o f in c o m e fr o m w h ic h t h e y
- H price increases, wages, national income and consumer expend!
tures have increased enormously.
We are living in a country whose economic character has
changed mightily since the outbreak of the war.
To measure
our present conditions by the norms of the 30's is to lose
sight of the fact that the economy has advanced so far that
those norms are no longer meaningful.
Our economy has
reached a new and higher potential of productive capacity
which is far above the peaks of the 30*8.
To yearn there
fore for the average times of the 1930*s is equivalent to
asking for depressions in the 19^0*s and 1950fs.
The
economic levels which produced H h e good old days1' would
mean breadlines or worse today*. ?or the average man is
substantially better off today, with a tax bill of $H0
billion and a national income of $165 billion, than he was
in 1936, with a tax bill of $3.5 billion but a national
income of only $65 billion.
He is now able to provide his
family with a more adequate diet. . He can afford better
clothing and better housing.
His enlarged purchasing power
has opened new markets and expanded old ones.
À return to
an economy of the level of the best years of the 1930,s
would mean therefore a reduction in the average standard
- 3 a s itu a tio n
unknow n i n t h e
e x p e r ie n c in g v i r t u a l l y
a fu ll
a re Jo b s fo r n e a r ly a l l
p a id
so
3 0 * s s i n c e we a r e c u r r e n t l y
lo n g a s we a v o i d
em p lo y m e n t e c o n o m y .
and th e Jo b s
in g e n e r a l a re w e ll-
r u n -a w a y i n f l a t i o n .
s u m e r s a r e b u y i n g m ore g o o d s a n d s e r v i c e s
b u s in e s s p r o f i t s
is
T h ere
H en ce, con
th a n e v e r b e fo r e ,
i n g e n e r a l a r e | h ig h ; a n d t h e w h o le econ om y
g e a r e d to a h ig h
le v e l o f a c t i v i t y .
c o u n t r y a b o u t 58 m i l l i o n
T h ere a re
e m p lo y e d c i v i l i a n
in
th is
w o rk e rs; an
e a r n in g s o f w orkers
in
t h;e m a n u f a c t u r i --,
ng .-------i n d u----------------------s t r i e s i n c r e a s e... d fr o m
s a l a r i e s ^ w h ic h a c c o u n t f o r a b o u t 2 / 3 o f t h e n a t i o n a l
in
1 9 ^ 0 /^ M i d e s p ite
$106.4 b illio n
in
shortage^j$8re3to8qFF9S«S8B ea8H % t o
19^5.
W h ile t h e s e f i g u r e s a r e
o f c u r r e n t p r ic e s and b e c a u se o f p r ic e
t h e p e r i o d do n o t t h e r e f o r e
in c o m e ,
i r
)J
it
is
income^
in d ic a te
o b v io u s t h a t
i n te r m s
in c r e a s e s d u r in g
th e
in c r e a s e
in
real
e v en a f t e r a d ju s tm e n ts f o r
iSuri ng th is period the B . L . S . Index of donsumer/pJriceB
for moderate-income fam ilies in large c it ie s (1935 - 39 1 0 0 ) w as
1 0 0 .2 i n
19*+0J| a n d 128.1+ i n
19+45.
2
-
A little
of
r e f l e c t i o n w o u ld I n d i c a t e
su ch a r e t u r n .t o
h e r ita g e s —
m u st e n t e r
-
th e
30 *8 .
th e
T h e w ar h a s l e f t u s many
some g o o d , som e b a d , b u t a l l
in to
im p o s s ib ility
r e a l — w h ic h
o u r t h i n k i n g on t a x p o l i c y .
T he i n t e r e s t
on t h e p u b l i c d e b t a l o n e e x c e e d s n o t o n l y t o t a l F e d e r a l
e x p e n d itu r e s
i n many y e a r s o f t h e p r e - w a r d e c a d e s b u t a l s o
to ta l Fed eral
p r io r to
1938,
in te r n a l
t h e w ar y e a r s ,
To t h e s e m i l i t a r y
s i s f k b l e a m o u n ts n e c e s s a r y t o
th e v a r io u s b e n e fit s a cco rd e d to v e te r a n s .
e x p e n d itu r e s -
and o th e r s
th o u g h
a re a t th e p re se n t r a te
l a r g e s t p re -w a r t o t a l b u d g e t.
e x p e n d i t u r e s m u st b e a d d e d t h e
d e fr a y
f o r a lm o s t a n y y e a r
The p o s t-w a r m i li t a r y e x p e n d it u r e s ,
s m a l l c o m p a re d t o
tw ic e th e
revenu e r e c e ip ts
T h ese
r e q u ir e d by p o s t-w a r c o n d it io n s -
a r e h e r i t a g e s w h ic h a r e r e f l e c t e d
in a b u d get fa t ^ ^ o v e ^ p re -
w ar l e v e l s .
I need n o t la b o r th e d i r e c t
t u r e s and t a x
b u d g e ts
le v e ls .
It
is
c o n n e c t i o n b e tw e e n e x p e n d i
r e a d ily a p p a re n t th a t p o st-w a r
l a r g e r a n d m ore c o m p le x t h a n t h o s e o f t h e 3 0 *8
n e c e s s a r ily
d iffe r e n t
r e q u ir e f o r t h e i r
m a in t e n a n c e a t a x s y s t e m f a r
fr o m t h a t o f t h e 3 0 * s .
T h e w ar h a s ,
how ever,
l e f t u s w ith a n o th e r h e r it a g e -
a n e n o rm o u s e x p a n s io n o f o u r n a t i o n a l e c o n o m y .
We now h a v e
TREASURY «DEPARTMENT
Washington
(The fo llo w in g address by S tan ley S. Surrey, Tax L e g i s l a t i v e
Counsel o f the Treasury Department, b efo re the American
I n s t i t u t e o f A ccountants, a t the Hotel Chalfonte-Haddon H a ll,
A t l a n t i c C i t y , New J e r s e y , i s
scheduled f o r d e l i v e r y at
5l30 p. nu, E. S, T . , on October 3* 1 9 ^ > and i s
fo_r_re le a s e
a t th a t t i m e . )
r e l i e f o r i n c e n t i v e a t o n e p o i n t m eans a t a x b u r d e n som ew here
e ls e .
A l l t h e d e s i r a b l e o b j e c t i v e s m u st b e w e ig h e d t o d e t e r
m in e w h ic h we a r e m o st a n x i o u s t o a c c o m p l i s h a n d w h ic h w i l l
m o st n e a r l y m eet o u r i d e a o f a d e s i r a b l e t a x p ro g ra m w i t h i n
our a c ce p te d c o n ce p ts o f fa ir n e s s
A f t e r t h e s e y e a r s o f w ar i t
som e,
t h e m ost d e s i r a b l e
w h ic h w o u ld r e v e r t t o
la te
1930*8.
is
n ot s u r p r is in g t h a t ,
t a x p ro gram f o r th e
t h e t a x s y s te m
T h o se p re -w a r y e a r s a r e
p e r s o n s a s a norm al p e r io d .
to a t t a i n
an d e q u i t y .
th e ta x
th a t
fu tu r e
e x is te d
is
to
one
in th e
re g a rd e d by su ch
H e n c e , t h e y u r g e t h a t we s e e k
l e v e l o f s u c h a n orm al e r a .
Addr
Tax
Treasu
Americ
Accbuntani
Jersey <
GURREHT TAX ISSUES
The formulation of a sound Federal tax program is a
d if f i c u l t task at any time.
It is doubly so in the present
transition from war to peace.
Many desirable objectives
may be sought in a sound tax system.
However, some of these
objectives w ill be in c o n flic t with others, so that the
achievement of one objective w ill necessarily result in
fa ilu re to attain another.
Given a to tal revenue goal, tax
r e lie f or incentive at one point means a tax burden somewhere
e lse .
A ll the desirable objectives must be weighed to deter
mine which we are most anxious to accomplish and which w ill
most nearly meet our idea of a desirable tax program within
our accepted concepts of fairness and equity.
After these years of war it is not surprising th at, to
some, the most desirable tax program for the future is one
which would revert to the tax system that existed in the
late 1930*8.
Those pre-war years are regarded by such
persons as a normal period.
Hence, they urge that we seek
to attain the tax level of such a normal era.
TREASURY DEPARTMENT
Washington
(The following address by Stanley S. Surrey, Tax
Legislative Counsel of the Treasury Department,
before the American Institute of Accountants,
at the Hotel Chalfonte-Haddon Hall, Atlantic
City, New Jersey, is scheduled for delivery at
3^30 p. m«, E. :S. T.t on October 3, 19¿6, and
is for release at that time.)
CURRENT TAX ISSUES
The formulation of a sound Federal tax program is a difficult task
at any time. It is doubly so in the present transition from war to
peace. Many desirable objectives may be sought in a sound tax system. •
However, some of these objectives will be in conflict with others, so
that the achievement of one objective will necessarily result in failure
to attain another# Given a total revenue goal, tax relief or incentive
at one point means a tax burden somewhere else. All the desirable
objectives must be weighed to determine which we are most anxious to
accomplish and which will most nearly meet our idea of a desirable tax
program within our accepted concepts of fairness and equity.
After these years of war it is not surprising that, to some, the
most desirable tax program for the future is one which would revert to
the tax system that existed in the late 1930’s. Those pre-war years are
regarded by such persons as a normal period# Hence, they urge that we
seek to attain the tax level of such a normal era#
,
A little reflection would indicate the impossibility of such a return
to the 30 *s. The war has left us many heritages — some good, some bad,
but all real — which must enter into our thinking on tax policy. The
interest on the public debt alone exceeds not only total Federal expendi
tures in many years of the pre-war decades but also total Federal internal
revenue receipts for almost any year prior to 1938* The post-war military
expenditures, though small compared to the war years, are at the present
rate twice the largest pre-war total budget#- To these military expendi—tures must be added the sizeable amounts necessary to defray the various
benefits accorded to veterans# These expenditures — and others required
by post-war conditions — are heritages which are reflected in a budget
far above pre-war levels.
I need not labor the direct connection between expenditures and tax
levels# It is readily apparent that post-war budgets larger and more
complex than those of the 30*s necessarily require for their maintenance
a tax system far different from that of the 30 fs«/
S-94
~
2
-
The war has, however, left us with another heritage — an enormous
expansion of our national economy. We now have a situation unknown in
the 30 ’s since we are currently experiencing virtually a full employment
economy. There are jobs for nearly all and the jobs in general are wellpaid so long as we avoid run-away inflation. Hence, consumers are buying
more goods and services than ever before, business profits in general are
high, and the whole economy is geared to a high level of activity. There
are in this country about 58 million employed civilian workers^ an increase
of 11-1/2 million over 194-0. At the same time, average weekly earnings of
workers in the manufacturing industries increased from $25*20 in 1940
to 444.41 in 1945. Total wages and salaries, which account for about 2/3
of the national income, rose from $49*7 billion in 1940 to $110.2 billion
in 1945. Consumers11expenditures rose correspondingly from $6 5 .7 billion
in 1940, despite shortages, to $106.4 billion in 1945* While these
figures are in terms of current prices and because of price increases
^/
during the period do not therefore indicate the increase in real income,
it is obvious that even after adjustments for price increases, wages,
national income and consumer expenditures have increased enormously.
c.
We are living in a country' whose economic character has changed
mightily since the outbreak of the war. To measure our present conditions
by the norms of the 30 ’s is to lose sight of the fact that the economy has
advanced so far that those norms are no longer meaningful. Our economy has
reached a new and higher potential of pi'oductive capacity which is far
above the peaks of the 30 's. To yearn therefore for the average times of
the 1930’s is equivalent to asking for depressions in the 1940’s aid 1950’s.
The economic levels which produced “the good old days" would mean bread
lines or worse today. For the average man is substantially better off
today, with a tax bill of 440 billion and a national income of $165 billion,
than he was in 1936, with a tax bill of $3*5 billion but a national income
of only $65 billion. He is now able to provide his family with a more
adequate diet. He can afford better clothing and better housing. His
enlarged purchasing power has opened new markets and expanded old ones.
A return to an economy of the level of the best years of the 1930’s would
mean therefore a reduction in the average standard of living that would
seriously damage the business community. It would condemn to idleness
men and machines now busily engaged in producing the goods necessary to
match the consumer demand created by the general improvement in economic
welfare. The maintenance and constant improvement of the present high
living standard of our citizens is more than humanitarian. It is good
business. For the only alternative to depression is to sustain our
present high level of production and purchasing power.
1/
During this period the B.L.S. Index of Consumer Prices for moderateincome families in large cities (1935 - 39 - 100) was 100.2 in 1940
and 128.4 in 1945*
- 3 We must fit our greatly increased Federal expenditures and taxes
into the setting of this new high level which our economy has reached.
Present peace-time collections of i>40 billions may seem an almost
fantastic increase over pre-war coll ec ti ons, but the significance of this
increase can only be interpreted in terms of the general economic situation«
The burden of taxes is not so much a question of the number of dollars
collected as it is a question of whether the economy can sustain a given
level of taxation. At high levels of income, it is easier to pay not only
larger amounts of tax but a larger proportion in taxes than at low levels.
When business is depressed, even small taxes constitute a heavy burden on
the small amounts of income from which they must be paid. When business
profits, salaries, and national income are high, large amounts of taxes
may be collected without harm to the economy or undue burden to the people.
If we regard — as we must — the high level which our economy has
attained as at least a new plateau on which we can go forward rather than
a peak from which we must descend, we must also regard a high level of
taxation as a permanent part of our system rather than a temporary phenomenon.
While high rate taxation is not unduly burdensome in a high level
economy, it does present a challenge. New/ problems arise that press for
solution. Old problems take on an increased importance. Some of these
problems we have already faced and solved. For example, when exemption
levels were reduced so that income taxpayers changed over night from
a select group to more than half the adult population, it was obvious that
our collection system had suddenly become archaic. The necessary modernization
was provided thru the adoption of the system of current individual income
tax payment based upon the withholding tax on wages and salaries and the
quarterly estimates of tax on other income. Accompanying this was a major
simplification of the basic income tax structure as it affected the average
taxpayer. As a result, today we handle ten times as many taxable individual
income tax returns as we did in 194-0 — yet the filing of returns has been
simplified to a degree thought impossible in 194-0, These adjustments in
the tax structure — withholding, current tax payment, simplification
all merit and demand a permanent place in the Federal system.
We have not, however, solved all of the technical and other problems
that come w/ith high level taxation. These problems are among the
important tax issues that must be faced during the next few years. Mention
of some of these questions in the income tax field may help to stimulate
useful discussion and bring about increased awareness of the problems
facing us.
General Corporation Problems
Perhaps the broadest question requiring consideration is the position
to be occupied by the corporation in the Federal tax structure. Corporate
income is now first subject to tax at the corporate level and again under
the personal income tax to the extent that profits are distributed to
stockholders. The problem is therefore generally presented in terms of
the "double taxation" of corporate income. But such a label unfairly
colors the question — the emotional connotations taxwise that are inherent
-
4
*
in the word “double” can easily throw us off balance. If we are to view
the problem, objectively we must recognize that the nature and extent of
the double taxation involved in this procedure are far from clear* Much
depends on the extent to which the corporation is able to shift its tax
to other people, for example,'workers or customers — an^ability which
is at present hard to measure. In the statements of businessmen themselves
there are implicit differences of opinion as to where the harden of
corporate taxes falls*
Differences of opinion as to the nature or extent of the problem
result in a variety, but no deficiency, of proposals.for changes in the
present procedure* At the one extreme are those who say that there is no
desirable alternative to the present procedure since the corporation has
an identity and tax-paying capacity that is separate and distinct from the
stockholders and, further, that the corporate income tax adds a desirable
element of progression to.the tax structure* At the otner extreme are
those who would eliminate the corporation income tax entirely, maintaining
that the corporation is a mere conduit for the individual shareholder.
Between these extremes are suggestions, based on ideas of equity and
incentive to investment, to tax corporations like partnerships, to deduct
all or a part of the dividends paid in determining corporate^taxable
income _ which would be a variant of the undistributed profits tax, to
partially exempt dividends received by stockholders so as to allow for
the tax paid by the corporation, or to adopt the British system of
treating the corporation tax as a withholding tax on dividend income*
All of these ideas have their advantages and disadvantages. Some,
such as the treatment of corporations like partnerships, would court
a complexity that in some instances would be disheartening. Others would
provide a generous windfall to the corporate investor* Vie must recognize
that while the views of some who have offered suggestions are dictated
by what they believe to be best for the economy as a whole, the views of
others are in part a reflection of special interests, one group seeking
tax relief at the expense of other groups<5 One thing is very clear
*
the area of disagreement is so Y/ide tha.t further study and discussion
of the problems involved are necessary before any basic reconsideration
of the corporation income tax can be undertaken*
Great interest ana diversity of opinion exist also with respect
to the taxation of small business. Many of the suggestions made are,
oi course, similar to those made for business taxation genere,l_t.y• The
problem here, however, is further complicated by the almost Impossible
task of defining small business in general terms and in such a way CiS
to apply to all industries. For whether the definition is in terms of
asset size, number of employees, net worth, profits, or sales, a firm
which would be considered small in one industry may be a giant in c.notht-r*
There is no question that small business is a most important fa.ctor in
the nation* s economy and that the tax system should be so geared a.s to
encourage the birth and growth of new enterprises. Before moving in
this field, however, there must be reasonable assurance that the
procedures selected will accomplish this objective*
-
5
~
Accelerated depreciation is another subject which has been discussed
considerably in connection with business taxation* Its proponents argue
the importance, especially to small business, of allowing an enterprise to,
in effect, "expense0 at least part of its investments. This view must be
weighed against the fact that accelerated depreciation would distort
a corporation’s income picture, that at least immediately it might cost
the Government substantial amounts of revenue, and that the over-all effect
such a provision would have on investment is not at all clear* Moreover, if the effect were to encourage investment, it might well be more desirable
to delay its introduction* At present such encouragement is not needed and
introduction today might only serve to waste a device whose incentive
qualities may be needed in the future*
Another corporation tax problem relates to corporations exempt from
income tax under section 101 of the Internal Revenue Code* These
exemptions have been in the law for many years and like other long-standing
provisions require reconsideration in the light of changed conditions.
Section 101 should receive comprehensive study, particularly as respects
the competitive relationship between exempt and taxable corporations*
All of these subjects present difficult problems* All of them will
have to be met* It is hoped that studies being made within and outside
the Treasury will aid in the resolution of the wide differences of opinion
which exist in these fields at the present time.
Capital Gains and Losses ;
Among businessmen and others interested in taxation even corporation
taxes often take second place to the problem of capital gains and losses
as a subject for critical discussion. The capital gain and loss provisions
have few equals in the law insofar as frequent change or general dis
satisfaction is concerned* One reason for this is that capital gains
cover so many fields that any general policy is very likely to involve some
unsatisfactory aspects*.
One such aspect under the present favorable capital gains rate —
certainly highly favorable in comparison to the regular tax rates — is
the temptation to frame transactions, ordinarily resulting in fully
taxable income, so that they will instead fail within the capital gains
provision. Where the law provides a "basket" offering a special tax
rate lower by far than the generally prevailing rate, a taxpayer’s
exercise of ingenuity to come within that basket is understandable* Thus
we find employee compensation arrangements framed in terms of options to
buy stock in the employer corporation in the hope that the spread on the
Securities so obtained may be treated as capital gain* Similarly, we
see movie stars going into the motion picture business and organizing
their own companies, with — we suspect — the chief motive of converting
ordinary compensation into capital gain* Proceeding to more complicated
arrangements, we find intricate corporate recapitalizations designed to
produce a reduction in corporate surpluses through actual cash outgo but
at the same time only a capital gains tax on the equivalent dollars
ultimately received by the stockholders*
- 6
A special low rate on capital gains may or may not be a desirable
thing insofar as the stock market is concerned — here, too, there are
differences of opinion. Some feel that a low rate encourages people to
buy securities as the easiest way to make a larger net income after
taxes and thus causes or stimulates stock market booms. Others feel,
with equal intensity, that any tax on capital gains is an obstacle to
securities transactions which induces unsatisfactory market conditions*.
But regardless of oneTs position on this subject, it seems clear that
a markedly lower rate on capital gains adopted for such investment con
siderations has undesirable effects on other situations* In short, if
the capital gain rate is far lower, the way to escape high tax rates is
to label income as "capital gain" — and hence the effort thru legislation
or judicial decision to convert ordinary income to capital gain. In some
instances the situation is complicated by the fact that the income in
question might merit some relief, but not the over-generous relief of the
capital gains rate# Yet the presence of that low rate as the sole
alternative to the high regular rates forces the all or nothing choice*
This is true of instances where averaging would be a fairer solution.
These are only some aspects of the capital gains provisions. But
I believe they will suffice to illustrate the importance of the problem
and the desirability of continued efforts towards improving the equity
and effectiveness of these provisions.
Family Income
Turning now directly to the individual income tax, we find that one
of the most important problems concerns the role that the family should
play under that tax. I had occasion to discuss this problem at length
before thé National Tax Association..- I am sure that the outlines are
familiar to you. Typically it is the husband who possesses the income
in the family group. Under the pressure of surtax rates, husbands have
constantly sought to in one way or another divide their income with
other members of the family and thereby reduce their tax.- The history
of the major litigation under the individual income tax may thus be
written in terms of their successes and failures. Early the Court
decided in Lucas v. Earl that a salary earner cannot escape tax thru
assignment to wife or child*. Recently the principle of that case was
extended to family partnerships.• In the trust field the honors fall
now to the Commissioner, now to the taxpayer, with the major victories —
as in the Clifford case — being scored by the Commissioner. But more
important than the results of all this litigation is the existence of
the litigation itself — with its cost, its uncertainties, its strain
on the administration of the tax laws.
In sharp contrast to these contests over the attempts of husbands
to reduce their surtaxes is the success achieved by residents of community
property states* Here the magic of the community property system, v;he±her
rooted in state history or adopted as a tax saving expedient, works wonders
thru automatic family income-splitting. ’The rewards of this splitting are
high — a 15$ reduction at the $10,000 level, 29$ at the $25*000 level,
20$ at the $100,000 level. In short, middle bracket community property
citizens have a federal tax ho3.iday at least every fifth year#
Equally serious discriminations exist among families in non
community property States* There families with income from property or
investments may achieve income splitting thru outright gifts, joint
tenancies, successful family trusts and the like* But the courts have
blocked such splitting in the case of income from the husband’s services*
As a consequence, in non-community property states the discriminations
between such married couples and those whose income is from property are
also in many instances in the dimensions described earlier respecting
community property* In other words, the middle bracket family with
stocks and bonds that has split its income equally between husband and
wife receives a tax holiday at least every fifth year, while the family
living on a salary or professional earnings must still work for Uncle Sam*
It is obvious that tax discriminations of such proportions among
families cannot be defended* They may be eliminated as respects husband
and wife only by a device which places all families on the same basis
regardless of the legal division of income between the Spouses* One
such device is a system of m.andatory joint returns* This was considered
by Congress in 194-1 and 1942 ana met with defeat* It could not stand
against some of the charges hurled against it — reduction of y/omen to
slavery, the breaking up of homes, the encouragement of divorce, the
promotion of living in sin*
Another device is to make the splitting of family income nationwide.
The federal tax law would total the income of husband and wife living
together, divide the total by two, compute tax on the resulting amount
with a single person’s exemption* The tax so computed would then be
doubled to provide the total tax of the married couple* The result in
brief is a universalized equal splitting of income between husband and
wife which would equalize the treatment of married couples regardless
of the character of their income, or the geographical location of the
couple*
In considering the choice between these two methods — mandatory
joint returns or per capita division between husband and wife — we must
recognize that as between married couples at any level either method
would eliminate discrimination. The tax in either case would be the same
for every married couple at that level regardless of the internal
distribution of income. Whether married couples would pay more dollars
under a mandatory joint return system or under a per capita' division
depends on the rate structure adopted after one or the other system is
selected. Consideration of these two alternatives from the aspect of
the proper tax liability of married couples relative to that of single
persons likewise does not provide us with any significant preference for
one system over the other*
It is likely, therefore, that the choice will be made on the basis
of arguments derived from history, from politics, and from emotions*
Such arguments would seem to point in the direction of the per capita
system.
8 I might close this brief discussion of the problem with a summary
largely quoted from the National Tax Association address:
The present treatment of family iricome is vulnerable to indictment
on at least two serious count
It is a fertile breeding ground of
costly, difficult and wasteful litigation. It is sadly lacking in tax
equityJ Since it involves both geographical discrimination between
families in community property states and those in non-community property
states* and qualitative discrimination between families receiving^earned
income aqd those possessing investment income. These discriminations
dollarwise are highly inequitable at present tax rates. Judicial safe—
guards devised to protect the progressive surtax have not provided
a rational system. -The alternative legislative solutions to these
difficulties are mandatory joint returns or per capita division between
husband and wife. At the level of the family* the latter solution of
per capita division appears politically feasible* Considered relative
to the treatment of single persons* the adoption of the per capita^
system may perhaps involve some discrimination in favor of the family
unit. But the extent of the discrimination so created is difficult of
positive proof and measurement. At any event* it does not appear to be
as serious as the present admitted inequalities among married couples..
The double need of eliminating both these inequalities and the excessive
litigation they promote would appear to outweigh the possible claims of
single persons* This and other problems* such as the treatment of
children and heads of families* together with the effect, of per capita
division on the revenue yield and the distribution of the income tax
burden* will have to be studied before the possibilities of such
nationwide income splitting as a solution to the family income problem
can be finally determined*
Si
Earned Income
In any examination of the basic elements of a peacetime tax
structure* the treatment of earned income merits consideration. Here
a page of history serves only to provide a contradiction
an earned
income credit that neither related to earned income nor was a real
credit. All income up to 13*000 was presumed to be eamedj all income
over $14*000 presumed to be unearned. For the income between $3*000
and $14*000 the maximum amount of credit was merely $84* Existing only
to produce complications, the credit was eliminated in 1943* We must*
in our consideration of ohis subject* attempt to discover whether such
previous treatment represents a failure to grapple with the problem
or a tacit recognition tiat in the final analysis only lip service
can in reality be accorded to the idea of a differential treatment of
earned income*.
Until recently* both in this country and abroad* the problem was
viewed as one affecting wage earners and modemate salary earners. In
this area proponents of the credit have urged that the peculiarities
of such earned income require that some adjustment be made in its
amount before it can be swept into the rate structure on an equal basis
with other forms of income• The arguments supporting this contention
that dollars of earned income really represent a 10?/er net than §n equcil
amount of dollars of unearned income are: a wage earner has extra living
costs which are not deductible for tax purposes; he is not allowed a
depreciation deduction to build up a capital fund for his Declining years
whereas the recipient of unearned income has such a fund* thereby increase
ing his capacity to pay; earned income is subject to greater fluctuation,
yet it does not have the benefit of the averaging effects of loss carry
overs granted to business income* In response it is denied that the tax
system discriminates against earned income — the total tax structure
with its progressive income tax rates places a higher rate of tax on
unearned income since that type of income predominates at the higher surtax
levels. It is also asserted that if discrimination does exist, the
credit is a poor way to meet it. If earned incomes have special costs they
should be made deductible and thereby treated directly; perfection of
a social insurance system is far more likely to provide for a secure old
age; an averaging device is a more direct solution to the problem of
fluctuation.
Before we attempt to choose between these contending arguments we
must be certain that a decision in favor of differentiation will be
followed by the adoption of a credit that does actually so differentiate.
For if, motivated by the need for continued simplification of our basic
tax structure, we decide that avoidance of complexity demands that all
income up to 15,000 be regarded as earned, the efforts spent on such
a choice become meaningless. The bulk of earned income would simply
remain undifferentiated. Many representatives of wage earner groups
appear to recognize that such a result might appear at the end of the
earned income credit road and have accordingly stressed other goals,
such as increased exemptions, in their efforts to ease their tax burden.
Such an attitude on the part of labor has not, however, lessened
discussion of the over-all problem. For recently the earned income
credit has been given a dinner jacket and introduced to high society.
KepresentativeS of business executives have urged such a credit as
a much needed method of stimulating incentives to work. It is
contended that high tax rates leave too small an increase in net
compensation as an executive climbs the business ladder from lesser
official to president, of the company. .As a consequence, too many
executives will forego further climbing when ihe rungs involving heavy
responsibilities are reached.
In considering the problem of earned income at these high levels
we must recognize, as discussed earlier in relation to family income,
that a salaried executive is at a distinct disadvantage relative to the
recipient of unearned income thru his inability to split his salary
with his family. Adoption of universal community property would, of
course, provide a large measure of relief for such executives — as long
as they are married. But when we pass beyond this obvious discrimination,
the problem is far more difficult.. Executive capacity is undoubtedly
a scarce commodity. But the amount of any earned income tax stimulus
must necessarily be mild due to revenue cost all along uhe salary
scale, and especially at the lower end. It is far from clear that such
a weak stimulus will produce any appreciable increase in the supply of
-
10
*
executives. Moreover, passing to another difficulty, everyone likes to
be stimulated. There do not appear to be valid grounds to prefer the
executive over the investor when we wheel out the tax pulmotor.
Many of those who stress the role of executive effort in providing
a dynamic economy recognize the difficulty of so choosing between various
types of economic activity. They recognize also that many of the
executives involved receive1 both forms of income. They consequently urge
a general tax reduction in the upper brackets. So viewed the problem of
earned income relief merges into the broad and difficult problem of
producing a rate structure that both provides the best economic results
and is equitable at all levels, "vi/hether or not that be the eventual
outcome of the present- discussion of earned income differentiation from
the incentive standpoint, the discussion will at least serve to stress
the importance of the role played by recipients of such income* Such
stress is perhaps necessary to prevent those who are concerned with
eliminating the double taxation of dividends from tipping the scales too
far in favor of unearned income.
Averaging
At a time when many basic concepts of the income tax are under
scrutiny, it is not surprising that the concept of the annual accounting
period must defend its right to a future in our brave new tax world. Thus
far, the shortcomings of the yearly period have received limited recognition
and correction through the carryback and carryforward of business losses
and the, limited proration of compensation and other forms of income under
the conditions of section 107. It is clear, however, that these provisions
meet only part of the problem.
Accordingly, the possibilities of extending the principles of
averaging will undoubtedly be considered in connection with post-war tax
revision. One suggested approach is through longer carryovers of business
losses. In part, such extension of the two-year loss carryforward would
be a replacement of the two-year carryback which has proved defective in
a number of respectsj in addition, it would be a recognition that a longer
period, say five years, is necessary to more efficient functioning of
such a carryforward*. To aid income from non— business sources, the
proposal has been made to allow a carryforward of unused personal
exemptions* Thus, where the income of an individual fell in any year
below his personal and dependent exemption level, the anused part of
such exemption could be carried over and offset against the taxable
income of a later year. This procedure would, of course, aid only those
families whose incomes fell below the exemption levels. Vfhile there are
millions of such families, some have felt that the averaging procedure
should be even broader and apply at all levels ana to all incomes. One
such suggestion, for example, is to average the income over a period of
years, to recompute the tax in each of the years on the basis of such
average income but at the rates and exemptions of such year and to refund
any excess.
-
11
-
Averaging proposals of any kind raise many questions, perhaps the
least of which is the difficulty of selecting a period of time over
which the averaging should take place* 'While proposals have been made
to average over periods varying in length from three years to a lifetime,
in the final analysis the period selected will depend on practical
considerations* Chief among such considerations is the degree of
complexity which an averaging procedure over a long period would entail,
since we cannot jeopardize the simplicity achieved in recent years in
the computation and collection of tax liabilities* More difficult
questions relate to the effect of averaging on currency of tax payments
and the related fiscal flexibility of the income tax* Averaging un
doubtedly has attractive equity considerations in individual cases*. But
in the aggregate it may so blunt the present sensitivity of the income
tax provided by current tax payment on a yearly basis as seriously to
weaken the role of the tax as an instrument of fiscal policy. Here, as
elsewhere, careful study of the Oompeting factors must precede any basic
change*
Income From Sources Abroad
Much of the hope for peace in the future rests upon the ability of
the nations to conduct trade with each other•- This goal requires a re
examination of our tax laws to ascertain their effect on international
trade. Vie should recognize that through reciprocal conventions to prevent
international double taxation much has already been accomplished to
eliminate obstacles to such trade* We have concluded tax conventions
with Great Britain, Canada, Sweden and France- (last not yet ratified)
and have undertaken discussions for similar conventions with the Union of
South Africa, Holland, Belgium and Luxembourg* However, in other
respects we have proceeded without adequate analysis of all the factors
involved, as witness perhaps the provision dealing with western hemisphere
corporations* In recognition of this, the Treasury, in conjunction with
the Staff of the Joint Congressional Committee, has undertaken a study
of the problems of taxpayers with income from sources abroad to deter
mine the proper application of the Federal tax system to such income*. .
Conclusion
The topics mentioned cover most of the important tax issues which
we face today, aside from the over-all problem of rates and exemptions*
I have confined the discussion to the income tax, though the other
Federal taxes will also face critical re-examination in the next few
years* Thus the Treasury, with the aid of an Advisory Committee, for
some time has been studying the need for revision of the estate and
gift taxes and their relationships to the income tax. 'The excise taxes
are likewise being examined in the light of postwar conditions. In the
Social Security field the Congress has already entered into a consid
eration of the extension of existing taxes to new areas — the selfemployed, farmers and domestics. In the field of tax administration,
the Treasury, also with the aid of an Advisory Committee, is studying
the challenging problem presented by our present procedure for the
adjudication of federal tax cases#
u
I
- 12 -
This brief discussion is sufficient to indicate that the tax
problems of peace are numerous and varied and difficult* We had tough
tax problems to face during the "war.-* Those problems* however* were
concentrated in the tremendous effort to provide large revenues. More
over* the terrific war stimulus operated to prevent errors from having
a serious over-all effect* But that stimulus is no longer present*
The task of keeping our economy running along at a continued high level
in peacetime requires far more care and precision. The challenge to
those concerned with taxation — in or outside of Government — is thus
clear. Straightforward* honest thinking and steady cooperation are
vitally necessary if tax policy is to contribute to national v\rell-being*
Washington
I>ress Service
wm ssmss, mmim m m »
Tuesday^ October 1» 1S%6«
fba Secretary of the Treasury announced last evening that the tenders far
*1,300,000,000, or tharoaixmtB, of 91-<i«y Tr»a*ury bill» to bo d*tod Octobor 3, 1^6, and
ottmred on Septoabor
to ««tar« January 2, 19U7, »hlch *®r*
27, « W , *•*» opmwd at the
Federal Beserve .Baides on September 30*
The details of this issue are a« follows:
Total accaptod ** - ^301*961**000
Average price
(includes *23,776,000 «ntered on a n»d-price
basis at 99*90$ and accepted in fall/
- 99 *90$/ Equivalent rate of discount approx« 0«375£ per annum
n«Ttg» of accepted competitive bids:
Sigh
* 99.90S Equivalent rate of discount approx, 0.361# per annum
Low
- 99,90$
«
(67 percent of the amount
«
bSÂ for
*
Total
Applied for
Boston
Hew Î ark
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
S t. Louis
I
n,$o$,ooo
1,1*32,116,000
3,61$,000
$1,$60*000
m,97$, ooo
5 .30 5.000
266,555,000
2.380.000
1 ,290,000
,*
58 61 0,000
16,355,000
X2.7h0.000
Milas
$an Francisco
TOTAL
«
0*376*
*
*
at the low price was accepted)
Federal Reserve
D istrict_____
Kansas City
*
*1,873,066,000
9 ,1*26,000
988.8511.000
3,38!*,000
35.060.000
10 ,1*80,000
5»305*ooo
179.335.000
1.885.000
1.290.000
là,U 5o,ooo
12.065.000
10.1*30,«X?
*1,3 0 1,96h,000
TREASURY DEPARTMENT
Washington
FOR RELEASE,.MORNING- NEWS PAPERE,
Tuesday, October 1, 1946«_____
Press Service
S-95
The Secretary of the Treasury announced last evening that
the tenders for $1 ,3 0 0 ,0 0 0 ,0 0 0 , or thereabouts, of 91-day
Treasury bills to be dated October 3, 1946, and to mature
January 2, 1947, which were offered on September 27, 1946, were
opened at' the Federal Reserve Banks on September 3 0 .
The details of th s issue are as follows:
Total applied for - $1,873,066,000
,
,
... '
1
Total accepted
- 1,301,964, 000 (includes $23, 776., 000 entered
on a fixed-price basis at
,
991 905. and accepted in full)
Average price - 99*905 / Equivalent rate of discount approx,
0,375/^ per -annum
Range of accepted competitive bids :
High - 99.908 Equivalent rate of discount approx. 0,364/£ per anni
low - 99.905
w
”
,T
1»
' 0.376^ "
n
(6 7
percent of the"amount bid for•at the "low-price was-accepted)
Federal Reserve
District
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago‘
St. louis
Minneapolis
Kansas City
Dallas
San Francisco
Total
11.,505, 000
1,43^«.146, 000
■
2;:.615, 000
y
51,,560, 000
10,.975, 000
Si.305, 000
266,1J J J ,000
2,,380, 000
i, 290 ,000
58,,640 ,000
16,1355, 000
12,1740, 000
1
TOTAL
Total
Accepted
Applied For
$1 ,873 ,066,000
$
9 , 426,000
988.854.000
. 3,384,000
35,060,000
10,480,000
. 5 ,3 0 5 ,0 0 0
179.335.000
1,885,000
. 1,290,000
44.450.000
.12,065,000
.
1 0 4 3 0 .0 0 0
$1,301,964,000
of taxes be maintained for some time.
In the management of our national debt,
we expect to continue issuing
securities to meet investors* needs,
while keeping an eye on the
potentialities for controlling
inflationary forces*
© b e ! ieve that a continuance of
interest rates on uovernment Securities
at about present levels is, at this
time, essential for the maintenance of
stability in the Sovernment bond market
upon which, to a considerable degree,
business confidence depends*
fiscal front to achieving a balanced
budget• Better y e t , it should strive
to achieve a substantial surplus of
I
taxes over expenditures to apply to
debt reduction.
To revert to the language of the
Directors* report, it is the fiscal
policy of your Company to endeavor to
accomplish this balancing of the budget
at the earliest possible time.
And with
that goal in mind, to urge, along with
utmost economy in Government, that,
for our common good, our present level
assets, mitsi to find th&t on balano®
w® have a great surplus* on® so groat
that m
©an turn to the future with
opt iiaisfu*
May )t in ©losing, state or rather!
restate briefly certain policies which
I feel it Is very important for our
people to understand*
In Chicago, two weeks ago, before
the American Bankers Association,
I declared that in the present economic
environment, the Federal government
should direct its primary effort on the
m
12
*
iSW# let us look at tilt other sis®
of the ledger#
There §• cur great
national debt, the problems
management it presents, the annual cost
of servicing this debt*
There are st11
with us the symptoms of Ineustrial
strife, and of dislocations and
maldistributions that may plague us for
some months ahead*
There is the stil*
present menace of inflationary forces.
But 1 do not think we need put on
rose colored glasses to evaluate these
liabilities against our great national
that promises us outlets for our
products on a scale never before
attained*
I come to you directly from the
first annual meetings of the Boards
of Governors of the World Bank and
international Monetary Fund, where we
have sought to lay the groundwork for
a sound and lasting world commerce*
I ask your support for these efforts*
I am confident they will contribute
greatly to our own prosperity, and to
that of the nations of the world*
1
w
1 0
'**
Certainly, an asset that promises
profitable operations for United States
of America, Incorporated, is the pentup
demand for all kinds of goods and
services, a real challenge to the
imagination and enterprise of our
national industry.
There is the fact
that our reconversion from war to
peacetime economy is virtually
completed.
And, shall we not add an item for
good will, for that unique position we
hold among the nations of the world,
*
3
m
and the thanks of your government, far
the part that you men, and the industry,'
business and finance that you represent,
played in the sale of !'«.r Bonds#
it was|
a tremendous contributI on to the war
effort
sure that we will have
your continued support in our present
program for the peacetime distrioution
of Savings Bonds through payroll saving!
plans and other mediums, and in the
successful accomplishment of our public
debt financing of the future.
'*$:
5''.y./
3
establishments of our country, the
\
j
physical properties and production
potential of such corporations as are
typified by their representatives
here tonight*
The United States
of
A
\
America, Incorporated, cert a ihly is
blessed beyond any nation in history
in the greatness of this asset*
We may add our national resources,
our accumulation of savings in
corporate securities, in bank accounts,
in/fiovernment bohds*
And right here
I want to express again my appreciation
•
6
shall call a simplified
to
Balance sheet of the United States of
America* Incorporates*
I m
afraid that in this time of
chanye from war to peace*
reel
of the multitude of our present
problems •• many of them transitory,
many of them relatively minor, and
some of great import —
may obscure %h9
tremendous surplus that we, as a nation,
enjoy*
If I were to go about setting up
a table of assets for this, the
who had a part in the preparation and
production of those prize-wlnning
statements*
1 wish to commend, particularly,
the publisher of the Financial World,
Louis Suenther, whose sponsorship of
this unique competition is but another
of his broad contributions to the
world of finane®*
...... Sine® we ar® thinking tonight of
corporate statements, I think it may
not be inappropriat® to suggest that
we might with profit, turn our attentio
years*
With store lucid writing* more
complete statistics* and better
typographical presentations* the
reports of many corporations have been
turned Into inspiring public relations
documents for people in all walks of
life, documtnts that promote confidence,
understanding and appreciation*
So i wish to extend my
congratulations to the wfiHfttffs
«Oscars of Industry1* trophies, and of th
other awards and commendations; and my
compliments to those of you present
The exceedingly complicated, vast
structure of our business economy
today is a tribute to the await ions,
resourcefulness and ingenuity of our
American people.
When we examine this
Goliath, we may feel that it is
a wonder that the financial statements
interpreting it are not more complicate
than they art.
Therefore, if is gratifying to all
of us to note the marked improvement
that has been witnessed in corporation
annual reports within the past five
2
better informed as to the structure!
t@chniques9 accomplishments v and
problems of our industrial enterprise.
1 have always believed that an
informed public is one of the strongest
bulwarks of Democratic dovermi»nt.
I am entirely sympathetic with the
philosophy that a public better informed
in the details of business management
provides a stalwart armor for our
system of free enterprise against those
forces that are ever ready to attack it.
ân M à r a s s by the Secretary of tha Treasury
Prepared far Delivery at a Moating before
the Me« fork Financial Writers, 7tQG p*m#f
at the Waldorf Astoria Motel,
October 4, 1 M 6
Mr. Schramm, Honored Quests,
Ladies and Gentlemeni
I am particularly happy to have
the >r ivilege of meeting here with
you tonight, to pay tribute to those
corporations judged as having the best
1945 annual reports in their industries.|
As Î understand the significance
of this occasion, it is the climax of
a program that has for its goal, a oubli
The following address by Secretary Snyder before a meeting of the
New York Financial Writers^ at the Waldorf Astoria Hotel, New York City,
is scheduled for delivery at
and is for release at that time»
p»gu, E.S.To »Friday. October A* 1946»
TREASURY DEPARTMENT
Washington
(The following address by Secretary Snyder
before a meeting of the New York Financial
Writers, at the Waldorf Astoria Hotel,
New York City, is scheduled for delivery
at 7 tOO p.m., E.S.T,, Friday, October 4 ,
1946, and is for release at that time,!
I am particularly happy to have the privilege of meeting
here with you tonight, to pay tribute to those-, corporations
jhdged as having the best 1945 annual reports in their
industries,
As I understand the significance of this occasion, it is
the climax of a program that has for its goal, a public better
informed as to the structure, techniques, accomplishments,
and problems of our industrial enterprise.
I have always
believed that an informed public is one of the strongest bul
warks of Democratic Government.
I am entirely sympathetic with
the philosophy that a public better informed in the details of
.business management provides a stalwart, armor for our system'
of free enterprise against those forces that are ever ready
to attack it.
The exceedingly complicated, vast structure of our business
economy today is a tribute to the ambitions, resourcefulness
and ingenuity of our American people.
When we examine this
Goliath,'we may feel that it is a wonder that the financial
statements interpreting it are not more complicated than they
are.
Therefore, it is gratifying to all of us to note the
marked improvement that has been witnessed in corporation
annual reports within the past five .years. With more lucid
writing, more complete statistics,. and better typographical
presentations, the reports of •many, corporations have been turned
into inspiring public relations documents for people in all
walks of life, documents that promote confidence-, understanding
and appreciation.
So I wish to'-extend my ..congratulations to the winners of
the ”Oscars of Industry” trophies, and of the other awards :and
commendations; :and my compliments to those- of you present who
had a part, in the preparation and production of these prize
winning statements.
S-96
2
I wish to commend, particularly, the publisher of the
f inancial World, louis Guenther, whose sponsorship of^ this
unique competition is but another of his broad conjrioutions
to the world of finance.
\VV**V|
Since we are thinking tonight of corporate statements.,
I think it may not be inappropriate>to suggest that we might^
with profit, turn our attention to what I shall call a simpli
fied balance sheet of -the United States of America, Incorporated.:
I am afraid that in this time of change from war to peace,
the reoital of 'the multitude of our present problems -- many
of them transitory, many of them relatively minor, and some of
great import -- may obscure the tremendous surplus that we, as
a nation, enjoy.
If I were to go about setting up a table of assets for
this, the greatest of all corporations, I think X should place
among the first on the list, the character, tne aggressiveness,
the capabilities, the record of achievement, of our American
people. We honestly believe that these- capacities,_which brought
us to victory over powerful enemies, will serve us in the at
tainment of a peacetime, national prosperity.
Thus, I think I should list the vast industrial and business
establishments .of our country, the physical properties and
production potential of s u c h ■corporationsVas are-typified by
their representatives here tonight.
The United Starnes of
America, Incorporated, certainly is blessed beyond any nation
in "history in the*, greatness of this’asset.
We may add our national resources, our accumulation of
savings in corporate securities, in bank accounts, in Government
bonds. And right, here I want to express again my appreciation
and the thanks of your Government, for the part that you men,
and the industry, business and finance that you represent,
played in the sale of War Bonds.
It was a tremendous contri
bution to the war effort,
I am. sure that we will have your
continued support in our present program for the peacetime
distribution of Savings' Bonds through payroll savings plans
and other mediums, and in the. successful accomplishment of our
public debt financing of the future.
Certainly, an. asset that promises profitable, operations
for United States of America, Incorporated,, is the pen tup demand
for all kinds of goods and services, a real challenge to the^
imagination.and enterprise of our national industry.
There is
the. fact that our reconversion from war to peacetime economy
is virtually completed.
And, s h all we n o t a d d an i t e m for g o o d will, for that
u n i q u e p o s i t i o n we h o l d a m ong the na t i o n s of the world, that
p r o mises us outlets for our products on a scale n e v e r before
attained*
I come to y o u d i r e c t l y f r o m the f i r s t a n n u a l mee t i n g s of
the Boards of G o v e r n o r s * o f the W o r l d B a n k a n d I n t e r n a t i o n a l
M o n e t a r y Bund, w h ere we have sought to lay the g r o u n d w o r k for
a sound an d lasting w o r l d commerce,
I a s k you r s u p p o r t for
these efforts*
I a m c o n f i d e n t t h e y w i l l c o n t r i b u t e g r e a t l y to
our own prosperity, a nd to t hat of the n a t i o n s of the world*
Bow, let us l o o k at the other side of the ledger*
There
is our g r e a t n a t i o n a l debt, the p r o b l e m s of m a n a g e m e n t it
presents, the a n n u a l cost of servicing this debt.
There are
still w i t h us the symptoms of i n d u s t r i a l strife, an d of d i s
l o c ations a nd m a l d i s t r i b u t i o n s that m a y plague us for some
months ahead.
There is the still p r e s e n t m e nace of i n f l a t i o n a r y
forces*
But I do n ot t h i n k we n e e d put on rose c o l o r e d g l a sses to
evaluate these l i a b i lities a g a i n s t our g r e a t n a t i o n a l assets,
and to find tha t on balance we have a g r e a t surplus, one so
g r e a t that we can turn to the f u ture w i t h optimism.
M ay I, in closing, state or r a t h e r r e s t a t e b r i e f l y certain
polic i e s w h i c h I f e e l it is v e r y imp o r t a n t for our people to
understand.
In Chicago, two weeks ago, before the A m e r i c a n Bankers
A ssociation, I d e c l a r e d that in the p r e s e n t economic e n v i r o n
ment, the F e d e r a l G o v e r n m e n t should d i rect its p r i m a r y effort
on the f i s c a l f r o n t to a c h i e v i n g a b a l a n c e d budget.
B e tter yet,
it s h o u l d strive to ac h i e v e a s u b s t a n t i a l surplus of taxes over
e xpenditures to a p p l y to debt reduction.
To r e v e r t to the language of the D i r e c t o r s ’ report, it is
the f i s c a l p o l i c y of your C o m p a n y to endea v o r to a c c o m p l i s h
this b a l a n c i n g of the b u d g e t at the ea r l i e s t p o s s i b l e time.
A n d w i t h tha t g o a l in mind, to urge, a l o n g w i t h u t m o s t economy
in Government, that, f or our common good, our p r e s e n t level
of taxes be m a i n t a i n e d for some time.
In the m a n a g e m e n t of our
n a t i o n a l debt,, we e x p e c t to continue i s s u i n g s e c u rities to mee t
i n v e s t o r s ’ needs, w h i l e keeping an eye o n 'the p o t e n t i a l i t i e s
for c o n t r o l l i n g i n f l a t i o n a r y forces.
We b e l ieve tha t a c o n t i n u a n c e of i n t e r e s t rates on G o v e r n
m e n t S e c u r i t i e s at a b o u t p r e s e n t levels is, at this time,
e s s ential f or the m a i n t e n a n c e of s t a b i l i t y in the G o v e r n m e n t
bond market, upon which, to a c o n s i d e r a b l e degree, business
c o n f idence depends.
4
President Truman earnestly supports this goal of a balancing
of the budget, and a reduction in the Debt.
I am sure that all
of you here tonight are strongly in sympathy with that objective»
As stockholders of United States of America, Incorporated, you
may differ with the Directors, at times as to some of the methods,
or the details, of our program.
I assure you that any construc
tive criticisms or suggestions that you may have will be given
serious consideration at the Treasury. We are constantly
soliciting the advice and opinions of men in the banking and
business communities.
What I should like to ask of this group, tonight, particularly,
is that you use all the facilities at your disposal to inform
the oublic of the nature of these problems, to help develop a_
national consciousness and concern for the proper administration
of our fiscal affairs, and to develop, inrough public awareness,
a willingness to meet our-responsibilities, even when the burden
is not easy.
This meeting is dedicated ;o the principle of a better
informed body of’security holders in our business realm.
I say
that the better informed the Stockholders in our Government
become, the more safely and surely shall we chart the pathway
of national financial soundness*
0 O0
S-96
I
-
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 MANUPACTURED OR OTHERWISE ADVANCED IN VALUE. Annual ouotas commencing
September 20, hy Countries of Origin:
Total..quota, provided, however,.that not more than 33-1/3 percent of the quotas
shall he filled hy 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
■
coiintries: United Kingdom, •prance, Netherlands, Switzerland, Belgium,
Germany, and Italy:
(in Pounds)
f
TOTAL IMPORTS
: ESTABLISHED : IMPORTS
*
Estahlishèd *
Country of Origin : TOTAL QUOTA ; Sept. 20,;194 6 5 33-1/3$ of : Sept..20, 194
.Total Quota : toSept* 21,1/
to Sept. 21,
--- "
"*t'nKyC..
19h^
— .
.•- . ;
69,627
—,
; ” •■
China........... .
Egypt..............
Cuba»••••••••♦••••••
Germany......... ...
Xbaly
4,323,457
239,690
227,42a
69,627
68,240
44,388
38,559
341,535
17,322
8,1356,54476,329
21,263-
TOTALS
5,482,509
69,627
United Kingdom......
Canada.
Prance..... ......*.
British India......
Netherlands.........
Switzerland.... .
T
l/
—.
—:
—
Included in total imports, column 2.
-oOo-
1,441,152 '
—; '
.75,807.
..... T-..,
.22,747... §
""‘ •
.14,796,. ..•4 ,...
.12,853. . .
...... 7-. . ., .,4f..’ ■."**".
: ■■•
... ;•- jr
- ..
.... •.
P?|
r
I .... .7". ..
. 25., 443. ..
.. .7.,.0,8.8. ..-----.
.'-A.
■
1,H9'9 ,'88’6 ''
—
for
I M M E M & T E RELEASE
O c t o b e r ' x , 1 9U6
The B u r e a u
of C u s t o m s a n n o u n c e d t o d a y
that p r e l i m i n a r y
reports
from
the
to
he
c o l l e g e r s '6f c u s t o m s s W - i m p o r t s of n o t t o n . ^ o t t o r i w a s t e ^ - g e a b l e
import
cuotas esta b l i s h e d b y
the P r e s i d e n t > s-pr.selama:tio)»s -of Septemb'er 5, 193!3,
a s a m e n d e d B y the p r o c l a m a t i o n s o f D e c e m b e r J . 9 ,
29, 1942, d u r i n g . t h e p e r i o d S e p t e m b e r 20, 1 9 4 6
TTAVTivTr A S T A P L E O R L E S S
" C O T T O N OR L E S S T H A N 3 / 4
INCH
TEAR 1-11/16
by
INCHES
(OTHER- T H A N H A R S H O R R O U G H
IN S T A P L E L E N G T H A N D C H I E F L Y U S E D
FA C T U R E OE B LANKETS A N D BLANKETING,
c o m m e n c i n g S e p t e m b e r 20,
R 40^ tif 5 ^ 3 1 '1 19^
6
to S e p t e m b e r 21, 1 9 6 6 .
IN T H E M A N U
A N D O T H E R T H A N L I N T E R S ), ■ A n n u a l
Countries
quotas
of Origin:
(I n P o u n d s )
Staple
C o u n t r y of
Origin
length less
" T s t a p l e . l e n g t h .1-1/8"
or m o r e
■than 1 - 1 / 8 " ‘
'i " . b u t l e s s t h a n 1 - 1 1 / 1 6
^
T l m p o r t s S e p t , : E s t a b l i s h e d : I m p o r t s Sept,
¿s-tablishted:20, 1946,
Quota
:Sept. 21,
Egypt and the AngloEgyptian Sudan...»■?•<•
Peru..... ............. •
British India....,.....
China.......... ........
Mexico..............
Brazil,......... .......
Union of Soviet
•Socialist Republics...
Argentina........ ......
Haiti........
....... *
Ecuador...... ..........
Honduras....... .
Paraguay,...............
Colombia.......... .
I................ .
British East Africa....,
Netherlands East Indies.
Barbados....... ........
Other British T‘rest
Indies l/............,
Nigeria.
Other British Uest
Africa
............
Other French Africa. 3/,.
Algeria and Tunisia....
2}.
to..:
19H6
Q,uata.... ; 20,
45,656,420
163,067
688,897
247,952?
1,370,791
8,883,259
1946,
21,
to
19d,6__
9,OOL,733
1,291,165
78^,816
2,003,'483
:Sept.
8,883,2^9
618,723
618,723
475,"12 4
5,203
'237
.9,333
7 52
.871
124
195
2,24071,388
21,321
5,377
16,004
689
14,516,882
10,353,9U6
1/
other
than Barbados,
2/
3/
Other
Other
than G o l d Co ast a n d Nigeria.
t h a n A l g e r i a , Tunisia, a n d M a d a g a s c a r .
Bermuda,
Jamaica,
45,656,420
Trinidad,
a n d T obago.
10,295,698
TREASURY DEPARTMENT
Washington
FOR IMMEDIATE RELEASE
October £, 1946
Press Service
No* S-97
The Bureau of Customs announced today.that ■preliminary reports from the
collectors of customs show imports.of. cotton uhd 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 Septeifiber 20, 1946 to September 21/ 1946*
COTTON HAVING A STAPLE OF LESS THAN l-ll/l6 INCHES ■(OTHER THAN HARSH OR ROUGH
COTTON OF LESS THAN 3/4 INCH IN STAPLE LENGTH AND CHIEFLY USED IN THE MANU
FACTURE OF BLANKETS AND BLANKETING, AND OTHER. THAN LINTERS). annual quotas
commencing September 20, by Countries of Origin:
(in Pounds)
Country of.
Origin
i•-
Staple length less '
Staple length 1-1/8” or
than 1-1/8"________ :more but less than 1-11/16”
slmports Sept/ ^Established:Imports Sept.
Established: 20, 1946, to • • Quota
:20, 1946, to
j
Quota
:Sept. 21, 1946*45,656,4,20 :Sept,., 21, 1946
:
.
Egypt and the Anglo....
783,816
Egyptian Sudan ........
163,067
247,952
Peru................ .
688,897
British India........... 2,003,483'
1/370,791
- ;
C h i n a . ^ .
8,883,259
. .
8,883,259
Mexico................
618,723
618,723
Brazil........ .........
Union of Soviet
475,124
Socialist Republics....
5,203
Argentina.
237
Haiti.......... . o*..... 0.
- '
1'* '
9,333
Ecuador.
752 ■
Hondur as........ *.......
.
871
Paraguay.••••••.........
.. ?..
124
Colombia. »....••..... .
195
Iraq.... ................
2,240
British East Africa..¿...
71,388
Netherlands East Indies..
**
Barbados.......... .
Other British West
21,321
Indies l/........ .....
5,377
Nigeria..............«...
Other British West
16,004
Africa 2/......................
689
Other French Africa 3/...
Algeria and Tunisia......
10,353,946
45,656,420
14,516,882
T T ' Other than Barbados/ Bermuda, Jamaica, Trinidad, and Tobago.
W
Other than. Gold Coast .and Nigeria.
y
Other than Algeria, Tunisia, and Madagascar.
9,004,733
1,291,165
■ —-
-
—
-
-
—
—
10,295,898
COTTON CARD STRIPS made from cottons having a staple of less than. I-3/I6
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 Origins
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 l-3/l6 inches or m’
ore in staple length in the cc.se of the following
countriesi United Kingdom, France, Netherlands, Switzerland, Belgium,
Germany, road Italy:
... A(‘In' Pounds)
: Established : TOTAL IMPORTS
: ESTABLISHED; IMPORTS
Country of Origin ; T0T‘
;L q UOt a :Sept, .20, 1946
: 33-l/3$ of sScpt. 20,1046 to
''
:
sto Sept. 21, 1946': Total' Quota:Sept. 21,1946 l/
United Kingdom.....
Canada, •...•.....o.
Franco*............
British India......
Netherlands........
Switzerland*,.......
Belgium............
Japan..............
China. *•»••••••.•••
Egypt.••••••••...•.
Cuba,.i.... ......
Germany............
Italy....... ......
TOTALS
l/
4,323,4*57
239,69C
227,420 .
69,-627
68,240
44,388
38,559
341,535 1
17,322
8,135
6,54476,329
21,263
•
*“
A
69,627
.'*•
—
**,
- ”,
?■„
-
5,482,509
69,627 .
Included in total imports', column 2.
)
0O0
•
1,441,152
**
75,807
t
.
.. • ,~
• 22,747
*• *14,796
12,853
,■■• *^ t a
is,.,¡IS
.■“
25,443
. 7>06Q
1,599,886
>
*“
m
24
**
So, I say, let us together serve
notice that the forces of law are on
the march In this country.
I
1
*
communities to put into effect the
knowledge gained in this National
|
!Academy# that our Federal agencies
are hacking them all the way*
The more completely we achieve
unity of zeal and purpose# the more
surely can we be certain of triumph ove
those forces of evil that threaten the
1
security of our Nation from within.
It was of this same stuff whence came
the victory over our external enemies.
22
You can help them, and they can help
you«
Mr« Hoover, it is ay desire
that the Treasury continue to extend
every cooperation to your Bureau in
its law enforcement work«
l know
that we will continue to enjoy
your support and assistance«
And
i know that you join me in telling
this group of front-line authorities
of the law as they go back to their
21
Our Federal Agencies need the
assistance of officers like yourselves,
1 am sure that Hr* Hoover will agree
with me on that,
I know that without
the goodwill and help of local
officers, the problems of enforcing
Federal laws would be infinitely
more difficult.
There are representatives of
one or more Federal law enforcement
agencies in all your communities.'
If you don’t know them, get acquainted.
•
20
*
war against crime designedly.
I cannot
emphasize too strongly my feeling that
on you gentlemen, and on your fellows
throughout this Nation, lies a major
responsibility *•- but one which I know
you are ready to meet to the best of
your ability.
in numbers, in strategic assignment
in collective authority and ability and
;
■
experience, } say our city, county, and
state officers of the law, constitute on
of our greatest forces for the protectio
of rights and property of our citizens*
19 •
State and local officers, such as
yourselves, have already contributed
much information of value to our drive
against the wartime cheat.
We ask your
continued help.
There is glory enough, and
opportunity enough, in this business for
all of us.
There must be no break in ou
armour, or weak point in our attack,
*
j through personal, or jurisdictional
jealousies, or indifferences.
I referred to law enforcement at
the local level as our front line in the I
18
his depredat ions*
You will recall that
it was the Income tax law that broke
the Capone crline empire In Chicago*
It Is this same technique, which,
under the direction of the Attorney
Seneral,we have employed in recent
months against the current crop of
racketeers, pooling the information of
all the agencies, making cooperative
presentations before grand juries and
the courts, seeking^prosecutions under
whatsoever law, that in a particular
case, promises speedy and conclusive
action.
against tb® modern forces of crisis* we
must establish defense In depth, and
»oat attack from depth.
From the front
lint post of the local police officer,
I
on up through city and county and statsII
enforcement, and to the great Federal
I
organizations such as the F*8,1 . and thJI
Treasury, there must be unity of purpose
and effort,
MËÊ&MÊËS 1
There must be exchange of
information as to method® and techniques
such as is typified by this National
Academy,
There must be exchange of
t
li V SR
t stalwart Individ
efforts of the agencies had not quite
been able to attain.
The unified afford
achieved enabled our agencies, through
the pooling of manpower, experience,
H
and know-how of their highly ski H a d
officers, to play an important part in
protecting the nation during its recent
struggle, and in smashing some of the
war-born rackets
developed to
prey upon the American people#
i say that if we are to protect
this nation in the ye-.rs before us
I
14
to nimer L. Iriy* who recently retired,
aft'.r a long and brilliant earser as
rury officer, from the post of
a Tr
Chief Coordinator#
The Capones, and
the ” ¡lucky" Johnsons, and the w&xey
ordo
h i m
it
•iiir like w111 not forget
& I
vt
on
«S
Oncer the.new- program, the efforts
of our separate agencies were Fused into
a. drive that soon had the forces of
oraanized crime on the run#
™
||p
'
-
Coordination —
or cooperation if
you prefer -«* furnished the extra push
illicit drugs fruts Europe and the
Orient«
Other smuggling was rampant*
Income tax evasion existed on a flagrant
scale*
Counterfeiting was on the
increase
Under the new administrât ion» the
Treasury set out to make more effective
" N
the gallant, but still i n s u f f i c i e n t ^
efforts of its agencies* operating*
each on its own«
Thus the Idea of
Coordination was born«
And right here
I want to pay just a word of tribute
or a state.
In Minutes, or in hours,
the culprit aay he on |yy| doorstep*
1 regret that the dictionary
offers no suitable synonym for the
word ’’Coopérâtion.”
I hope that the
careless over use of the term
"Coopérâtion” , will not dispose you
to discount what I have to say on
the subject.
For, if there is no
synonym for "Cooperation”*! neither is
there any substitute for It.
v
Let me revert to some experiences
of the Treasury Department.
forces of evil in this age of power and
»
Statistics compiled by the F*B*I
end so ably interpreted by
wll •
Hoover
show a steady increase in the number of
crimes of violence, and against
property, in recent months*
||pl
if the symptoms of increasing criiae
are apparent, so, likewise, are the
conditions that may, if not combatted,
feed further increases*
We have the
psychological and emotional disturbances
engendered by the war among a segment
Yet I, too, must express my
admiration —
especially since
.. '
,
cooperation of the F.B* I. has been, and
is, so essential to the common problems
we face in enforcing the law of the
land»
’ft, ( .
You men who have had the great
privilege of attending this
thirty-third session of the F#8.J *
National Academy have, in a sense,
been fitted with new armor to meet
a critical situation in the field of
law enforcement»
Tax Units of the Bureau of Internal
Revenue» and the Bureau of Narcotics.
It is an interesting fact that
those who would defraud their government
generally hold other laws' in contempt,
•■
and so, in enforcing the statutes over
in
which they have jurisdiction, the
Treasury agencies have put many a vicious
criminal behind the bars,
in fact, under
peacetime conditions, our agents
regularly have procured the evidence
upon which more than half of all
prisoners committed to our Federal
te k ê â m $ u If th§ S#er«tary e£ th« Treasury frqpftrtâ for
Delivery at the Graduation of the Thirty-third Seas ion
of the F* B« 1« latiooal Âoaàeny at lltSi
Ljjw -Departiaeatal Audi tor inn
October 4 f 1946
It should not sarprise/you* tha>t
In adcireasing this capable and
representative group of off icers,
Î should claim the privilege of speaking
as one law enforcement agent to another!
I am sure my friend, the Attorney
General, will agree with me when I say
that occupying a cabinet post in our
present-cay, complex Government has
a iertain analogy with that charming
(The following address by Secretary Snyder at the graduation of
thS Ü Î ? t7_Third 88881011
of
National Academy, •— "r liiiiiU H . Wn.
in ^Departmental Auditoriu^is^séhednled for delivery at 11,30 «.». n.s t
— -fopi October A. 1946. and is for release at that, n™. )
S ' ? S'
TREASURY DEPARTMENT
Washington
(The following address; by Secretary Snyder
at the graduation of the Thirty-third
Session of the F.B.I! National Academy,
in the Inter-Departmental Auditorium,
Washington, D. C., is, scheduled for de
livery at 11:30 a.m. E.S»T.« Friday,
October A. 194-6« and is for release at
that time,)
It should not surprise you that, in addressing this capable and
representative group of officers, I should claim the privilege of speaking
as one law enforeament agent to another!
•!
I am sure my friend, the Attorney General, will agree with me when
I say that occupying a cabinet post in our present-day, complex Government
has a certain analogy vdth that charming lady of the nursery rhyme, the
Old Lady Who Lived in a Shoe« You recall that she had so many children that
a considerable problem of administration developed. Most people always
think of the Treasury largely in terms of money, and bonds, and taxes* It
will surprise them when 1 say that when I came into the Treasury some months
ago, I found that I had also become the head of one of the world’s finest
law-enforcement or ganizations.
The Treasury has been in the law enforcement business since 1789, when
the Customs Service was organized as a source of revenue to the new Federal
Government •
Our United States Coast Guard, the nation’s
later, originally as the Revenue Cutter Service.
Congress has added to the Treasury’s enforcement
represented by the United States Secret Service,
Tax Units of the Bureau of Internal Revenue, and
first navy, followed a year
During the years, the
responsibilities the function
the Intelligence and Alcohol
the Bureau of Narcotics.
It is an interesting fact that those who would defraud their Government
generally hold other laws in contempt, and so, in enforcing the statutes
over which they have jurisdiction, the Treasury agencies have put many
a vicious criminal behind the bars. 3h fact, under peacetime conditions,
our agents regularly have procured the evidence upon which more than half
of all prisoners committed to our Federal prisons have been convicted.
I recount all this to emphasize the tribute I wish to pay the F.B.I.
and J. Edgar Hoover, Knowing the work done by Treasury Agents, I can speak
with warm and solid appreciation of the deeds pf the F.B.I. You must not
expect me to arouse in you any unaccustomed emotion of justifiable pride,
by praise for the work of Hoover or the F.B.I, For you hear such praise so
often. Yet I, too, must express my admiration -r- especially since cooper
ation of the F.B.I. has been, and is, so essential to the common problems
we face in enforcing the law of the land.
S-98
- 2 -
You men who have had the great privilege of attending this thirty-third
session of the F.B.I* National Acadeny have, in a sense, been fitted with
new armor to meet a critical situation in the field of law enforcement.
I am sure that during the past weeks, on many occasions, you have had
brought heme to you a sense of the magnitude of the problems ahead of us.
I have great faith in the good sense, in the basic soundness, in the moral
stability of our American people* But we would be foolish indeed to ignore
history, with its lessons of moral collapse which so generally follow wars.
We would be doubly foolish to ignore the danger signals already apparent,
or to minimize the potency of the forces of evil in this age of power and
speed.
Statistics compiled by the F.B.I. and so ably interpreted by Mr. Hoover
show a steady increase in the number of crimes of violence, and against
property, in recent months.
If the symptoms of increasing crime are apparent, so, likewise, are the
conditions that may, if not combatted, feed .further increases. We have the
psychological and emotional disturbances engendered by the war among a segment
of our population, plus a natural revolt against restraints and inhibitions.
We have the fruits of disruption of normal home life and family discipline.
We have large groups of our population definitely on the move, or faced with
economic or social dislocations.
These are factors that may make for an incidence of crime, at, let us
say, the grassroots, or the pavement level. And, of course, we have with us
still the professional criminal, the gangster, the thug, the pickpocket, the
forger, the defrauder.
The rapid transportation age has erased our interior jurisdictional
lines in the war against crime* Our local officer today cannot play the role
of the boy at the dike, holding back the seas of violence by thrusting
himself into a single breach. The paternal policeman on his quiet beat, or
the neighborly constable in his township, no longer can be unconcerned about
the murderer, or the*robber, who strikes a distant city, or a county, or
a state. In minutes, or in hours, the culprit may be on his doorstep.
I regret that the dictionary offers no suitable synonym for the word
"Cooperation.” I hope that the careless over use of the term "Cooperation",
will not dispose you to discount ?/hat I have to say on the subject. For,
if there is no synonym for "Cooperation", neither is there any substitute
for it.
Let me revert to some experiences of the Treasury Department,
When the Roosevelt Administration came into office this country still
was reaping the consequences of the moral letdown that followed the First
World War, and which was aggravated by the Great Depression. The law en
forcement responsibilities of the Treasury were grievous. Rum fleets off
S-98
- 3 ~
our shores flouted all authority* Our- Bureaus of Narcotics and Customs
wore attempting to 'cope with a tremendous pressure of illicit drugs from
Europe and the Orient, Other smuggling was rampant. Income tax evasion
existed on a flagrant scale. Counterfeiting was on the increase*
Under the newr administration the Treasury set out to make more ef
fective the gallant, but still-insufficient, efforts of its agencies,
operating, each on its own. Thus the idea of Coordination was bom. And
right here I want to pay just a word of tribute to Elmer I, Iroy, who
recently retired, after a long and-brilliant career as a Treasury officer,
from the post of Chief Coordinator. The Capones, and the ’TJucky" Johnsons,
and the Vaxey Gordons, and their like will not forget him soon.
Under the new program, the efforts of our separate agencies were fused
into a drive that soon had the forces of organized crime on the run,.
Coordination — or cooperation if you prefer — furnished the extra
push that 'even the most stalwart individual efforts of the agencies had not
quite been able to attain. The unified effort achieved enabled our agencies,
through the pooling of manpower, experience, and know-how of their highly
skilled officers, to play an important part in ,protecting the nation during
its recent struggle, and in -smashing some of the war—bom rackets that
developed to prey upon the American people,
I say that if we are to protect this nation in the years before us
against the modem forces of crime, we must establish defense in depth,' and
must attack from depth. From the front line post of the local police
officer, on up through city and county and state enforcement, and to the
great Federal organizations such as the F,B,I,.and the Treasury, there must
be unity of purpose and effort.
There must be exchange of information as to methods and techniques,
such as is typified by this National Academy, There must be exchange, of
information regarding crimes, and criminals, such as is typified by the
FfB.I, fingerprint identification service developed under Jf Edgar Hoover.
There, must be cooperation between officer and officer, and between
political entity and political entity, and between service and service.
he must be prepared to nthrow the book11 at the confirmed criminal,
bringing to bear against him every law, local, state or federal, that
promises most quickly and most effectively to end his depredations, lou
will recall that it was the income tax law that broke the Capone crime
empire in Chicago,
It is this same technique, which, under the direction of the Attorney
General, we have■cmplojred in recent months against the current crop of
racketeers, pooling the information of all the agencies, making cooperative
presentations before grand juries and the courts, seeking prosecutions
under whatsoever law, that in a particular case, promises speedy and con
clusive action.
S-98
- 4 •-
State and local officers, such as yourselves, have already contributed
much information of value to our drive against the wartime cheat« We ask
your continued help;
There is glory enough, and opportunity enough, in this business for all
of usi These must be no break in our armour, or weak point in our attack,
through personal, or jurisdictional jealousies, or indifferences;
I referred to law enforcement at the local level as our front line in
the war against crime designedly. I cannot emphasize too strongly my feeling
that on you gentlemen, and on your fellows throughout this Nation,
lies
a major responsibility — but one which I know you are ready to meet to the
best of your ability..
In numbers, in strategic assignment, in collective authority and ability
and experience, I say our city, county, and state officers of the law,
constitute one of our greatest forces for the protection of rights and property of our citizens.
Our Federal Agencies need the assistance of officers like yourselves;
I am sure that Mr« Hoover wl 11' agree with me on that. I know that without
the goodwill and help of local officers, the problems of' enforcing Federal
laws would be infinitely more difficult.
There arc representatives of one or more Federal law enforcement agencies
in all your communities. If you don’t know them, get acquainted; You can
help them, and they can help you.
Mr; Hoover,- it is my desire that the Treasury continue to extend every
cooperation to your Bureau in its law enforcement work« I know that we
will continue to enjoy your support and assistance.- And I know that you
join me in telling this group of front-line authorities of the law as they
go back to their communities to put into effect the knowledge gained in
this National Academy, that our Federal agencies are backing them all the
way.
The more completely we achieve unity of zeal and purpose, the more
surely can we be certain of triumph over those forces of evil that threaten
the security of our Nation from within; It was of this same stuff whence
came the victory over our external enemies.
So, I say, let us together serve notice that the forces of law are on
the march in this country;
-o0o~
S-98
EARNINGS, EXPENSES, AND DIVIDENDS OP NATIONAL BANKS IN THE SIX
MONTH PERIODS ENDED JUNE 30, I9U6 AND JUNE 30, 191*5 , AND THE
YEAR ENDED DECEMBER 31» 19^5 ~ Continued
(Amounts in thousands of dollars)
*
5
*
Recoveries:
On securities..............
On loans........... ......
All other........ ........
TOTAL RECOVERIES........
Profits on securities sold or redeemed.
TOTAL RECOVERIES AND PROFITS ON
SECURITIES SOLD OR RETrawsm
Losses and charge-offs:
On securities....... .
.
On loans............
All other...........
TOTAL LOSSES AND CHARGE-OFFS.
PROFITS BEFORE INCOME TAXES.
Taxes on net income:
Federal................ .
State................ T
TOTAL TAXES ON NET INCOME
NET PROFITS BEFORE DIVIDENDS
Dividends declared:
On preferred stock..... ..
On common stock:
Cash dividends.........
Stock dividends..... T
TOTAL DIVIDENDS DECLARED.
Number of banks 1 j.........
Annual rate of net profits:
io capital funds 1/..........
Annual rate of cash dividends:
To capital funds 1j...... T.
l/ At end of period.
6 months ended
:,
June ÿ)9 : June 30, :
' 191*6
:
19l*5
:
76,902
$54,153
37.392
26.78U
118.329
l4i,«>3
122,128
260,132
34,526
7r*,o27
ll Ca 7
11,432
54,221
334.731
27,688
“ 131.967
«n itc
“5.328
85.463
2^9,268
11,192 .-— **>*jffc
170 ,5b6
1 0.0
a ffoc
*
12.058
45,626
72.967
Tear ended
Doc. 31 ,
1945
29,652
...
63,51«
159.374
490,133
vth
2 ,111*
Ji 771
**,131
76 7Xk
97,413
71
9K7
f•‘•»¿Dr
51,664
125,035
151,525
77,308
232,961*
5.01S
5.021
5,023
Percent
Percent
Percent
11.51
11.15
10.53
3.21
3.28
3 .3 4
1
^
660,699
19.305
EARNINGS, EXPENSES, AND DIVIDENDS OP NATIONAL BANKS IN TEE SIX
MONTH PERIODS ENDED JUNE 30, 19*46 AND JUNE 30, 19*45, AND THE
YEAH ENDED DECEMBER 31, I9I45
(Amounts in thousands of dollars)
6 months ended
1s
s
•
June 30» 5 June 30*
s
*
19*46
:
19*45
-p
Capital stock, par value: 1/
Preferred............ ,...
Common..... ... Tr
TO TA L C A P IT A L <
5TO HIT
Capital funds l/....... ...... .
Earnings from current operations:
Interest and dividends:
On. U.S. Government obligations...
On other securities...........
Interest and discount on loans.
Service charges on deposit accounts*.......
Other service charges, commissions, fees,
and collection and exchange charges......
Trust department...... rr,
Other current earnings.........
T O T A L THAPTiTTWlC! TPDAM ffiTODtHTm
OPERATIONS.......
$47,424
1*683.677
‘».873,577
361 ,602)
51.251)
$79.656
1,544.755
1.62*4.*411
‘».‘»72.553
$70,39»»
1.588.656
1.659.050
‘».655,737
359.039
(651.592
( 92,992
37>»,U7
61,204
226,210
33,010
181,3*42
30.723
26,075
23,336
18,883
‘»2.731
764,215
25,58*4
-
I Year ended
* Dec. 31.
:
19*45
36,878
652,¥19
52,337
40,761
76.219
1,349,222
Current operating expenses;
Salaries and wages:
Officers............... ..............
Baployees other than officers......... .
Pees paid to directors and members of
executive, discount, and advisory
committees..........
Interest on time deposits (including
savings deposits)..............
Taxes other than on net income........
Recurring depreciation on hanking house,
furniture and fixtures............... .
Other current operating expenses.........
TOTAL CURRENT OPERATING- EXPENSES..,.. \
NET EARNINGS PROM CURRENT OPERATIONS..
7'»,5‘»6
63,*4*40
130,071
107,220
229,412
3 »838
3.395
7,206
69,991
26,633
59.057
26,302
124,567
54,886
10,821
130,841
446,741
" 317.974
10,949
115.262
385,625
23,468
241.772
266,82*4
532.531»
135,377
816,688
I.
- 2 -
$111, 766,000 over the gross earnings for the first six months in 19I+5 . Oper
ating expenses, excluding taxes on net income, were $1+1+6 ,71+1,0 0 0 as against
$385»625»000 for the first half of I9I+5 .
Cash dividends declared on common and preferred stock totaled
in comparison with
$73*371.000
cash dividends was
3.21
in the first half of 1 9 I+5 .
percent of capital funds.
$76,106,000
The annual rate of
The cash dividends to stock
holders in the first half of 19*+6 were 2 7 .SI+ percent of the net profits available.
The remaining
72.16
percent of net profits, or
$130,1+85,000,
was retained by the
banks in their capital accounts.
On June 3 0 , 1 9 I+6 there were
to
5*021
on June 3 0 , 1 9 I+5 .
5,018
national banks in operation, as conpared
TREASURY DEPARTMENT
COMPTROLLER OE THE CURRENCY
Washington
FOR RELEASE, MORNING NEWSPAPERS
Press Servi
No,
Comptroller of the Currency Preston Delano announced today that the national
hanks in the United States and possessions reported net operating earnings of
$317*^74*000 for the six months ended June 30, 1946, an increase of $50,650,000
over the first half of 1945.
Adding to the net operating earnings profits on securities sold of
$7 2 »967»000 and recoveries on loans and investments, etc. previously charged
off of $5 5 »70 3»000, and deducting therefrom losses and charge-offs of $6 3 *5^2,000
and taxes on net income of $10 2 ,003*000, the net profits before dividends for
the six months ended June 30» 1946 amounted to $280,593*000, which at an annual
rate amounts to 11.51 percent of capital funds.
This figure of net profits before
dividends was $3 1 *325*000 more than the amount reported for the six months ended
June 30, 19^5.
The principal items of operating earnings in the first half of 1946 were
$361,602,000 from interest on U. S. Government obligations and $51*251*000
interest and dividends on other securities, a total of $412,853,000, which was
an increase of $53*214,000 over the corresponding period in 1945» $2 2 6 ,210,000
from interest and discount
on loans, an increase of $44,868,000, and $3 3 ,010,000
from service charges on deposit accounts, an increase of $2,287,000.
The principal
operating expenses were $208,455*000 for salaries and wages of officers and
employees and fees paid to directors, an increase of $34,^100,000 over the first
half of 1945» and $69»991»000 expended in the form of interest on time and savings
deposits, an increase of $10,93^*000.
Gross earnings of $764,215*000 were re
ported for the six month period of 1946.
This represents an increase of
T R E A S U R Y D E ]’A R T M E N T
Departmental Stock Form 2131
PEOIAL
It is Important
th a t th is Paper
should be made
Special.
U 8. GOVERNMENT PRINTING OFFICE
2----6610
D E L I V E R
TO
d
Ï..... “.....................
|M
PUBLIC RELATIONS
I
|
I
I
| ROOM
1
I... .......... ;
.
REMARKS
Please furnish the Statistical
Division of the Comptroller*s'
Office, Room 912, Washington
Building, with 200 copies of
this release*
FROM
(Name, not i n i t i a l s )
D E L I V E R
TO
FROM ... -------------------(Name, not initials)
i
Mr. S h a e ffe r
TRE A S U R Y D E P A R T M E N T
C O M P T R O L L E R OP T HE C U R R E N C Y
Washington
P O R RELEASE, M O R N I N G N E W S P A P E R S
S a turday,. October. :5 ^ 1 9 4 6 .
Press Service
No* S-99
C o m p t r o l l e r of the C u r r e n c y P r e s t o n D e l a n o a n n o u n c e d t o d a y
t h a t the n a t i o n a l banks in the U n i t e d States a n d p o s s e s s i o n s
r e p o r t e d n e t o p e r ating earnings of $ 3 1 7 » 4 7 4 » 000 f o r the six
m o nths ended June 30, 1946, an in c r e a s e of $ 5 0 , 6 5 0 , 0 0 0 over the
f i r s t half of 1945*
A d d i n g t o the n e t o p e r a t i n g e a r nings p r o f i t s on s e c u rities
sold of $ 7 2 , 9 6 7 ? 0 0 0 a n d r e c o v e r i e s on loans and investments,
etc* p r e v i o u s l y c h a r g e d off of $ 5 5 , 7 0 3 , 0 0 0 , a n d d e d u c t i n g t h e r e
f r o m losses a n d c h a r g e - o f f s of $ 6 3 , 5 4 8 , 0 0 0 a n d taxes on n et
income o f ' $ 1 0 2 , 0 0 3 ,0 0 0 , the n e t p r o f i t s b e f o r e di v i d e n d s f o r
the s ix m o nths e n ded June 30, 1946 a m o u n t e d to $280,593,000 ,
w h i c h at an a n n u a l r a t e a m o u n t s to 11*53, p e r c e n t of c a p i t a l
funds.
This f i g u r e of n e t p r o f i t s b e f o r e div i d e n d s was
$ 3 1 , 3 2 5 , 0 0 0 more than the a m o u n t r e p o r t e d f or the six months
ended June 30, 1945.
The p r i n c i p a l items of o p e r a t i n g earnings in the f i r s t half
of 1946 w e r e $ 3 6 1 , 6 0 2 , 0 0 0 f r o m i n t e r e s t on U, S* G o v e r n m e n t
o b l i g a t i o n s a n d $ 5 1 , 2 5 1 , 0 0 0 i n t e r e s t a n d div i d e n d s on other
securities, a t o t a l of $ 4 1 2 , 8 5 3 , 0 0 0 , w h i c h was an increase of
$ 5 3 , 8 1 4 , 0 0 0 over the c o r r e s p o n d i n g p e r i o d in 1945; $ 2 2 6 , 2 1 0 , 0 0 0
f r o m i n t e r e s t a n d d i s c o u n t on loans, an i n c r e a s e of $44,868,000,
a n d $ 3 3 , 0 1 0 , 0 0 0 f r o m service charges on d e p o s i t accounts, an
increase of $ 2 , 2 8 7 , 0 0 0 .
The p r i n c i p a l o p e r a t i n g expenses w e r e
$ 2 0 8 , 4 5 5 , 0 0 0 f or s a l aries a n d wages of officers a n d employees
a n d fees p a i d to directors, an in c r e a s e of $34,400,000. over the
f i r s t half of 1945, a n d $ 6 9 , 9 9 1 , 0 0 0 e x p e n d e d in the f o r m of
i n t e r e s t on time a n d savings deposits, an increase of $10,934,000.
G r o s s earnings of $ 7 6 4 , 2 1 5 , 0 0 0 w e r e r e p o r t e d for the s ix m o n t h
p e r i o d of 1946*
This r e p r e s e n t s an i n c r e a s e pf $ 1 1 1 , 7 6 6 , 0 0 0
over the g5oss earni n g s for t he f i r s t six months in 1945*
Oper
ating expenses, exc l u d i n g t a xes on n e t income, w e r e $ 4 4 6 , 7 4 1 , 0 0 0
as a g a i n s t $ 3 8 5 , 6 2 5 , 0 0 0 f or the f i r s t half of 1945*
C a s h d i v idends d e c l a r e d on common a n d p r e f e r r e d s t o c k
t o t a l e d $ 7 8 , 1 0 8 , 0 0 0 in c o m p a r i s o n w i t h $73,3-71,000 in the f i rst
half of 1 9 4 5 . The a n n u a l r a t e of c a s h d i v i dends was 3*21 p e r
cent of c a p i t a l f u n d s *
The c a s h div i d e n d s to s t o c k h o l d e r s in
the f i r s t half of 1 946 w e r e ' 27 ,#84 p e r c e n t of the n e t profits
available,f The r e m a i n i n g 72,»16 p e r c e n t of n e t profits, or
$130, 4 8 5 , 0 0 0 , was r e t a i n e d by t h e banks in their c a p i t a l a c
counts *
tion,
On June 3 0 , 1 946 there w e r e 5 , 0 1 8 n a t i o n a l bank's in o p e r a
as c o m p a r e d t o 5 , 021 on June 30, 1945»
EARNINGS,
EXPENSES,
AND DIVIDENDS OF NATIONAL BANKS
MONTH- P E R I O D S E N D E D J U N E 30, 1 9 4 6 A N D J U N E 30,
Y E A R E N D E D D E C E M B E R 31, 1 9 4 5
(Amounts
in thous a n d s
1945,
: June
:
Pt
p
par value:
30,
THE
1946
:
:
ended
:
Ju n e
:
30,
:
1945
Year
ended
Dec.
31,
1945
1/
"Ppr*r, P f } ....................................................................................... ....
,...
$47,424
Common
TOTAL CAPITAL STOCK............ .. ....
1,683,677
C a p i t a l f u n d s ¿ / , .................. ... ... v . . . . .
Earnings from current operations:
Interest and dividends:.
On U.S. Government obligations....... .
On other securities,............ ......
Interest and discount on loans...........
Service charges on deposit accounts......
Other service charges, commissions, fees,
and collection and exchange charges.,..
Trust department ,.*............ .
Other current earnings...................
TOTAL EARNINGS FROM’CURRENT
O P E R A T I O N S . ..... ...,...........
Current operating expenses:.
Salaries and -wages:.
Of fic ers...............................
Employees other than officers..........
Fees paid to directors and members of
executive, discount, and advisory
committees••.•••»..•••«•**••
........
Interest on time deposits (including
savings deposits),...........
Taxes other than on net income...........
Recurring depreciation on banking house,
furniture and fixtures .................
Other current operating expense1-.........
TOTAL CURRENT OPERATING EXPENSES,...
n e t e a r n i n g s f r o m c u r r e n t o p e r a t i o n s ,...,..
)
AND
SIX
of dollars)
6 months
C a p i t a l st o c k ,
IN THE
479,656
1.544*755
$70,394
1,588,656
1,624,411
1 ,6 5 9 ,0 5 0
4,472,553
4,655,737
359, 039
(651,592
( 92,992
361,602)
5 1,2 5 1)
226,210
181,342
374,117
33,010
30,723
61,204
26,075
23,336
52,337
40,761
42,731
25,584
18,883
36,878
76,219
764,215
652,449
1 , 3 4 9 ,2 2 2
74,546
6 3 ,4 4 0
135,377
.130,071
107,220
2 2 9 ,4 1 2
3,838
3,395
7 ,2 0 6
69,991
59,057
26,633
2 6 ,3 0 2
10,821
10,949
130,841
446,741
317,474
1 1 5 ,2 6 2
124,567
54,886
*
2 3 ,4 6 8
241,772
385,625
816,688
266,824
532,534
EARNINGS,
EXPENSES,
A N D D I V I D E N D S O F N A T I O N A L B A N K S IN
M O NTH PERIODS ENDED
J U N E 30,
19X6 AND
J U N E 30,
Y E A R E N D E D D E C E M B E R 31*
(Amounts in t h ousands
1945,
N E T P R O P I T S B E F O R E D I V I D E N D S . - .................
Dividends d ec l a r e d :
THE
of d o l l a r s )
:_________ 6 m o n t h s
Taxes on net income:
P’eder al................
State................................ .
TOTAL TAXES ON NET INCOME___ ...____
AND
1945 - Continued
4 June 30, :
1946
:
Recoveries:
On securities..*-......... ......... .
On loans
.........
All other........*
^
*
TOTAL RECOVERIES*........ ......
Profits on securities sold or redeemed......
TOTAL RECOVERIES AND PROFITS ON
SECURITIES SOLD OR REDEEMED. ......
Losses and charge-offs:
On securities....... ..............
On loans............ ....................
All other........... ................ .
TOTAL LOSSES AND- CHARGE-OFFS.........
PROFITS BEFORE INCOME'TAXES......... .......
THE SIX
ended
:
June 30,
1945
:
:
Year
ended
Dec. 31,
1945
117,530
23,365
14,308
55,703
72,967'
414,743
18,825
12,058
45,626
76,502
454,153
37,392
26,784
118,329
141,803
128,670
122,128
260,132
35,302
9,390
13,356
63,548
382, 596
34,526
8,263
11,432
54,221
334,731
74,627
29,652
27,688
131,967
660,699
95,829
6,174
102,003
80,135
5,328
85,463
159,374
11,192
170,566
280,593
249,268
490,133
4, Ujj-L
On common
stock:
C a s h d i v i d e n d s ......... .......... .........
S t o c k d i v i d e n d s ............ .......
TOTAL
d i v i d e n d s d e c l a r e d .... .........-
Number of banks
Annual rate
To
1 / * ........ ............. .........
of net profits:
capital funds
1 / ......... .
A n n u a l r a t e of c a s h d i v i d e n d s :
To c a p i t a l f u n d s 1 / .................
1/
At
end of p e r i o d
71,257
1 5 1 ,5 2 5
51,664
77,308
97,413
125,035
2 3 2 ,9 6 4
5,018
5,021
5,023
76,734
Percent '
Percent
Percent
11.15
10.53
3.28
3.34
I 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.
ALFH4
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 kill 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
October in
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 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
AXEH&
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERSj
Friday, October R, 19U6______ y
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
—
W
—
~
w
on a discount basis under competitive and fixed-price bidding as .hereinafter
provided.
The bills of this series will be dated
October 10, 19U6
, and
m
will mature
January 9» 19U7
, when the face amount will be payable witht s f -------- out interest. They will be issued in bearer form only, and in denominations
of $1 ,000 , $5 ,000 , $10 ,000 , $ 100 ,000 , $ 500 ,000 , and $ 1 ,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the
closing hour, two o ’clock p.m., Eastern Standard time,
Monday, October 7, 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., 99.9,25.
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.
TREAS U R Y I03PARTI:IENT
'Washington
F O R RELEASE, M O R N I N G NEWSPAPERS,
Friday, O c t ober 4» 1946
P r ess Se r v i c e
No. S - l O O
The S e c r e t a r y of the Treasury, by this public notice,
i n v ites tenders f o r $ 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 i s s u e d on a d i s c o u n t basis under' c o m p e
titive 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 dated O c t ober 10, ^1946, and w i l l
*m a t u r e J a n u a r y 9, 1947> whe n the f ace 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.
They w i l l be i s s u e d in b e arer f o r m only, a nd
ih 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 received; a t F e d e r a l .Reserve Banks an d
Bra n c h e s u p to the c l o sing hour, two o ’c l o c k p.nw, Eastern.
Standard;time, Monday, O c t o b e r 7, 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 tender
m u s t b e f o r an even m u l t i p l e of $1,000, a n d the price offered
m u s t be1 e x p r e s s e d on the. basis of 100, w i t h no t more 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 and 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 '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 a nd t r u s t com p a n i e s a n d f r o m r e s p o n s i b l e a n d r e c o g n i z e d
dealers in i n v e s t m e n t s ecurities*
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 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 c l o sing hour, tenders w i l l be opened
at the F e d e r a l R e s e r v e Banks a nd 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 Treas u r y
of the a m o u n t a nd price r a n g e of a c c e p t e d bids.
Those s u b m i t
ting 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 ^ t h e
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 ole or in
part, a n d his a c t i o n in a n y .such r e s p e c t shall be .final.
Subject
to thes e r e s e r v a t i o n s , t e n ders for $ 2 0 0 , 0 0 0 or less f r o m a n y one
b i d d e r at 9 9 .9 0 5 e n t ered 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 at the prices o f f e r e d
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 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 O c t o b e r 10, 1946*
2
The income de r i v e d f r o m T r e a s u r y bills*,.whether' I n t e r e s t
or g a i n f r o m the sale or other d i s p o s i t i o n of the bills, s h all
n o t have a n y exemption, as such, a n d loss f r o m the sale or o t h e r
d isposition of T r e a s u r y bills s h all 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 cts n o w or h e r e a f t e r enacted.
The 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, but shall be e x empt f r o m
a ll taxation n o w or h e r e a f t e r im p o s e d on the p r i n c i p a l or"interest
thereof 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 p u r p o s e s of t a x a
tion 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 orig i n a l l y
sold by the U n i t e d Stat e s s h a l l be c o n s i d e r e d to be interest.
U n d e r Sections 42 a n d 117 (a) (l) 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 p u n t
of d i s c o u n t a t . w h i c h bills i s s u e d h e r e u n d e r are sold 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 s h all be sold, r e d e e m e d
or o t h erwise di s p o s e d of, and'fs u c h bills a re e x c l u d e d f r o m
consi 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 asu ry bills (other than life i n s u r a n c e companies) i s s u e d h e r e
u n d e r n e e d i n clude in his income tax r e t u r n onl y the d i f f e r e n c e
between the price p a i d ' f o r s u c h bills, w h e t h e r on or 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 a c t u a l l y r e c e i v e d either
u pon sale or r e d e m p t i o n at m a t u r i t y during the taxable, y ear f o r
w h i c h the retu 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 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 b i lls and g o v e r n the
c o n d itions of t h eir issue.
Copi e s of the c i r c u l a r m a y be o b
t a i n e d f r o m a n y F e d e r a l R e s e r v e B a n k or Branch.
‘oOo
His long career of public service has
been climaxed, these past months, by
his outstanding contribution to the
deliberations of the Atomic Energy
Commission of which he is the American
Member.
I am glad to associate myself
with those who manifest our gratitude
and our admiration by the presentation
of the Freedom House award to
Bernard M. Baruch."
'*j*'
^^hhhh •.hhh ^h
$
’v ■\*.
^
jjggt
■
?ff I ,
:^m
jgg^
(To the guest of honor)
BERNARD
BARUCH
-- Statesman —
seer* *•
wise pilot of our thoughts and
•j■
|. \
:;•
'
•...
•
'
J
'|§»;/-.
,. .
...J,
oouncellor of our actions«*» .through
the years» an unflagging patriot —
I salute you*«*.your friends and
fellow-citizens salute you*••*
And,
in addition i bear a message from one
who has also served our country
notably and courageously, in both war
and in Peace - - - The President of
the United States*
(Pause)
m
*%
_
■■■
Yet in Bernard Baruch, the chemical
fusion which produces a personality
has blended these diverse elements of
character, and the result is the man
whom we have met here tonight to honor.
The award to be given him is but the
concrete, material expression of the
deep regard, amounting almost to
veneration, in which we all hold him*
America —
world —
no, not just America, the
is richer because he has
lived his life among us*
(3"
Remarks of the Secretary of the Treasury
©Inner in Honor of Bernard
Baruch on
October 8, 1946
11
Mr. Chairman — Mrs. Roosevelt —
3r. Conant
Ladies and gentlemen, and
may I say, "fellow-dwellers in this
Atomic Age" —
For we who live today are unique
among all generations in that each of
us can say, "I saw the birth of the
Atomic Age."
Some years ago, what we may regard
as another Atom Bomb -- the human
equivalent of the mass of steel and
TREASURY DEPARTMENT
Washington
FOR RELEASE, M O R N I N G N E W S P A P E R S *
Wedn e s d a y , O c tober 9, 1946______
.
Press Service
No* S-101
(The fo l l o w i n g address by S e c r e t a r y S n yder
was d e l i v e r e d at the Fifth A n n i v e r s a r y D i n n e r
o f F r e e d o m House, h o n o r i n g B e r n a r d Baruch, at
the C o m m odore Hotel, N e w Y o r k City, on October
8, 1946.)
Mr. Chairman
Mrs. R o o s evelt -- Dr. C o nant -- Ladies
and Gentlemen, and m a y I say B f e l l o w - d w e l l e r s in this Atomic
A g e ” -For we w ho live today are unique among all gene r a t i o n s
in that eac h of us can say, !,I saw the b i r t h of the Atomic
A g e .”
Some years ago, wha t we m a y r e g a r d as a n o t h e r A t o m B o m b the h u m a n e q u i v a l e n t of the mass o f steel and energy w h i c h
fell on N a g a s a k i -- was born.
As d u r i n g W o r l d W a r I, we
spoke f a m i l i a r l y of a c e r t a i n h i g h e x p l o s i v e by its initials,
T.N.T., so w e s p eak n o w o f this h u m a n A t o m Bomb, familiarly, as B.M.B.
Bernard Baruch —
the words, to all of us, stand for a
man wh o combines m a n y versatile qualities, some of w h i c h are
f r e q u e n t l y c o n s i d e r e d to be c o ntradictory.
R a r e l y is the
m a n o f a c t i o n the analyst or p hilosopher.
E q u a l l y r a rely is
the t h i n k e r the doer.
Y e t in B e r n a r d Baruch, the chemical
fusion w h i c h produces a p e r s o n a l i t y has b l e n d e d these diverse
elements of character, and the result is the m a n w h o m we hav e
met here tonight to honor.
The award to be g i v e n h i m is but
the concrete, m a t e r i a l e x p r e s s i o n of the d eep regard, a m o u n t
ing almost to veneration, in w h i c h we all h o l d him. A m e rica -no, n o t just America, the w o r l d -- is r i cher b e c a u s e he has
lived his life a m o n g us.
BERNARD BARUCH —
S t a t e s m a n -- seer*.* w ise pilot of our
thoughts a n d c o u n c e l l d r of our a c t i o n s . *• t h r o u g h the years,
an u n f l a g g i n g p a t r i o t -» I salute you..*, y o u r friends and
fe l l o w - c i t i z e n s salute you...
And, in a d d i t i o n I b ear a m e s
sage f r o m one who has also served our c o u ntry n o t a b l y and
courageously, in b o t h w a r and in Ipeace - - - The P r e s i d e n t of
the U n i t e d States.
2
The P r e s i d e n t writes: ' "I u n d e r s t a n d that y o u will be
among those who w i l l g a t h e r to h o n o r that great American,
B e r n a r d Baruch, on the occasion of his rec e i v i n g the Annual
Fr e e d o m H o u s e award for d i s t i n g u i s h e d service in the cause
of peace.
,fPlease act at that time as m y representative, in e x p r e s s
ing m y w a r m a p p r o v a l of the c o m m i t t e e ’s choice for this y e a r ’ s
recipient of the award, and my felic i t a t i o n s to Mr. B a r u c h
u p o n ' t h i s w e l l - d e s e r v e d recognition.
His long career of public
service has b e e n climaxed, these past months, by his o u t s t a n d
ing c o n t ribution to the d e l i b e r a t i o n s of the A t omic E n e r g y
C o m m i s s i o n of w h i c h he is the A m e r i c a n M e m ber.
I a m glad to
a s s o c i a t e m y s e l f w i t h those w h o ma n i f e s t o ur g r a t i t u d e and our
a d m i r a t i o n b y the p r e s e n t a t i o n of the F r e e d o m H o use award to
B e r n a r d M# B a r u c h . ”
0O 0
y /
STATUTORY DEBT LIMITATION
AS Off SEPTEMBER 30. i f f i T
Section 21 of the Second LibertyBond 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 $275*000,000,000 outstanding at any one time. Jor purposes of this section
the current redemption value of any obligation issued on a discount basis, which is
redeemable prior to maturity at the option of the holder shall be considered as its
face amount.1'
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 September 30, 1946
Obligations issued under Second Liberty Bond Act, as amended
Interest-bearing
Treasury bills.... .......... . $ 17*007,005,000
Certificates of indebtedness...*
34*478,045,000
Treasury notes............ .
19.446,6l2 ,200 $ 70 ,931 ,663,200
Bonds
\ Treasury.......... .........
yfSavings (current redemp. value)
Depositary................ .
119,322,902,^50
49,544,914,680
,384,903.500
Special Eunds
Certificates of indebtedness..
11,492,000,000
Treasury notes..............
12,361,647,000
Total interest-bearing...... ..... .
Matured, interest-ceased. ....... ..... .
Bearing no interest
War savings stamps.....
85,284,443
Excess profits tax refund bonds.
39,225,130
Total.........................................
Guaranteed obligations (not held by Treasury)
Interest-bearing
Debentures: E.H.A............
43,548,336
Demand obligations:,C.C.C. .....
347,473,139
Matured, interest-ceased.... ........ .
$275 ,000,000,00
169 ,252,720,630
j3 .8 5 3 .ft 7 .OOP
2!W,O
(
38 ,030.83O
256,202,975
12^,509,573
2 6 ^ 1 8 ^ 3 *378
391.021.U75
8,618,250
399.639.725
Grand total outstanding......................... ..... ....... .
264,818.383,10
Balance face amount of obligations issuable under above authority
10.181, >16.8-2
Reconcilement with Statement of the Public Debt - September 30* 19^6
(Daily Statement of the United States Treasury, October 1 , 1946)
Outstanding September 30» 1946
Total gross public debt .............................. ........ .
265 »368,855»31
Guaranteed obligations not owned by the Treasury.....••«•••••••••••••
399.639.72?
Total gross public debt and guaranteed obligations
.....
265 ,7°8,495*03”
Deduct - other outstanding public debt obligations
not subject to debt limitation...... ......................
950.111,93!
264,818,383^
5
RHMulroe/MC
10/3/46
STATUTORY DEBT LIMITATION
AS OF SEPTEMBER -30, 1946
October 7, 194-6
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 $275*000,000,000 outstanding at any one time. For purposes
of this section the current redemption value of any obligation issued on a discount
basis which is redeemable prior to maturity at the option of the holder shall be
considered as its face amount."
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
$275*000,000,000
Outstanding September 30, 194-6
Obligations issued under Second Liberty Bond Act, as amended
interest-bearing
Treasury bills. ............ $ 17,007,006,000
Certificates-of indebtedness
34*478,045*000
Treasury notes.......... .
19*446.612,200 $ 70,931*663,200
Bonds
Treasury................
119,322,902,450
Savings (current redernp. value) 49*544*914*680
Depositary....... .............. 384*903» 500169*252,720,630
Special Funds
Certificates of indebtedness 11,4-92,000,000
Treasury' notes......... .... 12,361*64-7*000
Total interest-bearing........ ..........
Matured, interest-ceased........... ......... .
Bearing no interest
War savings stamps..
85*284*443
Excess profits tax refund bonds
39*225*130
Total..................... .......... .........
Guaranteed obligations (not held by Treasury)
Interest-bearing
Debentures: F.H.A...... .....
43*54-8,336
Demand* obligations: C.C.C. ... __ 34-7*473*139
Matured, interest-ceased..................... .
V
23*853*647*000
264,038,030,830
256,202,975
124*509*573
264,418*743*378
391*021,475
8*618,250
399*639*725
Grand total outstanding.
..... . ........................
264x818*.333.*..1Q3
Balance face amount of obligations issuable under above authority.... 10,181,616,897
Reconcilement with Statement of the Public Debt - September 30, 1946
(Daily Statement of the United States Treasury, October 1, 1946)
Outstanding September 30, 1946
Total gross public debt..... ,..... ....... ............265*368,855*314
Guaranteed obligations not owned by the Treasury...... ________________ 399*639*725
Total gross public debt and guaranteed obligations .............. . 265*768,495*039
Deduct - other outstanding public debt obligations
not subject to debt limitation.............. .
950*111*936
5
bV/;.’
■<
264*818,383*103
S-102
TS&4S0H BEPARTMEHT
Washington
im
mmmss
nmsim
mspAr n s ,
Press Service
Tuesday» October 8, 19h6.
- 5 - / ^ 3
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 October 10, 19l|6,
and to nature January 9, 191*7, shich sere offered on October
k,
191*6, sere opened at the
Federal Heserve Banks on October 7*
The details of this issue are as follows:
Total applied for # $1,891,$63*000
Total accepted
- 1,306,1*38,000
Average price
(includes $31,228,000 entered on a fixed-price
basis at 99*90$ and accepted in full)
— 99*90$/ Equivalent rate of discount approx. 0.37$% per annua
Range of accepted competitive bids:
High
Los
- 99*907 Equivalent rate of discount approx. 0.368# per annua
- 99.90$
«
*» *
*
*
0*376# *
»
(8$ percent of the amount bid for at the low price was accepted)
Federal Reserve
District
Total
Applied for
Total
Accepted
Boston
Wes fork
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
$
♦
20,1*20,000
1,1*78,61*0,000
27,983,000
IS,160,000
6,190,000
21*8,265,000
3,200,000
7,260,000
17,1*55,000
12,275,000
1*6,31*0,000
15 ,520,000
1,011,215,000
23,083,000
11,310,000
$,66$, 000
8,375,000
165,915,000
2,675,000
5 ,160,000
H*,305, ooo
9,125,000
3b.090.000
♦1,891,563,000
♦1,306,1*38,000
#
TOTAL
0,375,000
TR E A S U R Y D E P A R T M E N T
Washington
FOR RELEASE, M O R N I N G NEWSPAPERS,
Tuesday, October 8, 1 9 4 6 ______:
Press Service
No. S-103
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 ,300,000,000, or thereabouts, of 91day T r e a s u r y bills to be d a ted Oc t o b e r 10, 1946, and to
m a t u r e J a n uary 9, 1947, w h i c h were offered on O c t o b e r 4,
1946, w e r e o p e n e d at the Federal R e s erve Ranks on O c t o b e r 7.
The details
of this
issue
are as
follows*
Total a p p l i e d for - $ 1 , 8 9 1 , 5 6 3 , 0 0 0
1,306,438,000
Total a c c e p t e d
.Average price
Range
- 9 9 . 9 0 5 / Equiv.
of a c c e p t e d
Hi eh - 99.907 Eauiv.
Low
- 99.905
'*
(65 pe r c ent
(includes $>31,228,000 ^entered
on a fixe d - p r i c e basis at
99.905
rate of d i s c o u n t approx. 0 . 3 7 5 %
p er a n n u m
of
competitive bids:
rate of discount approx.
"
"
the a m o u n t b id
for
"
0/368$'-per annum0.376,? "
"
at the lo w price was
Total
Accepted
Total
Ap p l i e d for
Federal Reserve
District
$
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San F r a ncisco
TOTAL
20,420,000
1,478,640,000
27.983.000
15.160.000
6.190.000
8.375.000
248,265,000
3.200.000
7.260.000
17.455.000
12.275.000
46.340.000
$1,891,563,000
oOo
accepted)
t
~
15,520,000
1,011,215,000
23. 0 8 3 . 0 0 0
11.310.000
5.665.000
8.375.000
165,915,000
2 . 6 75.000
, 5,160,000
14.305.000
9.1 2 5 . 0 0 0
34. 0 9 0 . 0 0 0
$1,306,438,000
and a c c
TREASURY DEPARTMENT
Washington
Press Service
No • S—104
FOR RELEASE5 MORNING NEWSPAPERS,
Thursday, October 10, 19¿6»_____
Savings bond sales in 1946 passed the six billion dollar mark,
Secretary Snyder reported today*
flaifluagy«
rrit" bjl li on iiM'tir nrmrrl nr ‘ff-nyr ^
Thn
1 11r -1
rrpri1” 1
l<1lA
©»©--week. ■The-
w.wi'1 i r e i w " 't h e 1 14 Ö 1
-ts^K
•iyj^pyyio paymon+.g
>
te&Q
r
^ridàiH
ni g .A
m
ooo, ooo, ooor
¿•Gl *fa***“T i r . f ^ L r 1
Ja -a s r e
a
ip n m -ja ftftflJa a d
a n .. ¿ 1 1 — t d j a p
If *?Lh-tf**^Wiaju^i».»'^ur;
September sales of E, F and G Savings Bonds totalled $494*111*000,
bringing the year’s total to
,784*000 at the end of the month*
Sales exceeded redemptions of these series by 1*1,142,350,000*
Total of
E, F and G bonds outstanding at the end of September reached $46 ,200,000,000, j
a--gQ-in nf fr1,
TP ,
,
,
.
p'nri<npnJ
P
I
including the increase in value of Series E and
,,
/!o <5L*
^
CiAA/vt+oy^
^
CA
)
9 ■
F bonds during the nine months,
4/0
c j
jfyCjSitfc
»
_pkj& Vi/isJ^UUa Ai^Ujt-1 C4AA/\X*1t*A>,Lu
[Total of E bonds outstanding at tihe end of September, |>30 ,300,000,000,
FC%4u\JkJ&
W
iü L te
S
!
iS
was 1*46 per cent lower than at the beginning of the year.
&
O
t & T > X > .
(T O
O
September E bond
sales were $*308,846,000.
g
a spur to bond sales in the last quarter, a publicity and
advertising campaign will be staged from Armistice Day, November 11,
through Pearl Harbor Day, December 7*
The last such promotion was
followed by a three-quarter billion sales month in July.
- 0O0-*
TREASURY DEPARTMENT
Washington
P O R RELEASE, M O R N I N G NEWSPAPERS,
Thursday, O c t o b e r 10, 1 9 4 6 .___ _
S a v ings
mark,
bond sales
Press Service
No. S-104
in 1946 p a s s e d the s ix billion dollar
S e c r e t a r y S n y d e r r e p o r t e d today.
'September .¿ales of E, . P a n d G- Savings Bonds t o t a l l e d
$494,111,000,
b r i nging
the end of the month.
the y e a r ’s t o tal to $ 5 ,8 7 8 , 7 8 4 ,obo at
Sales
series by $ 1 , 1 4 2 , 3 5 0 , 0 0 0 .
ing at the
of these
T o t a l of E, P an d G- bonds
outstand
end of S e p t e m b e r r e a c h e d $ 4 6 , 2 0 0,000,000,
including
the increase
months,.
ex c e e d e d r e d e m p t i o n s
in value of Series E a n d P bonds during the nine
This
is a g ain of $ 1 , 5 0 0 , 0 0 0 , 0 0 0 for the t h ree series
c u r r e n t l y on sale.
T o tal of E bonds
o u t s t anding a t the end of September,
$ 3 0 ,3 0 0 , 0 0 0 , 0 0 0 , was 1.46 p e r c e n t lower than a t the beg i n n i n g
of the year..
S e p t e m b e r E bon d sales w e r e $ 3 0 8 , 8 4 6 , 0 0 0 *
As a s pur to b o n d sales
a nd a d v e r t i s i n g
N o v e m b e r 11,
in the last quarter,
a publicity
c a m p a i g n w i l l be s t a g e d f r o m A r m i s t i c e Day,
t h r o u g h P e a r l H a r b o r Day,
D e c e m b e r 7•-
The last
s u c h p r o m o t i o n was f o l l o w e d by a t h r e e - q u a r t e r billion sales
m o n t h in July.
0 O0
FOE' IMMEDIATE RELEASE
19**6
mm
/
of Customs announced today preliminary figures showing the imports
for consumption of commodities within fuota limitations provided for under trade
agreements, from the beginning of the fuota periods to September 28, 19^6,
inclusive as follows;
Commodity
:
: Unit
:Imports as
:
Established Quota
8
of
!of Sept« 28
;Period and Country; Quantity ;Quantity ; 19U6
Whole Milk, fresh
or sour
Calendar year
3,000,000
Gallon
7 ,55^
Cream, fresh or sour
Calendar year
1,500,000
Gallon
1,9^7
Fish, fresh or frozen
filleted, etc., cod
haddock, hake, pollock,
cask, and rosefish
Calendar year
White or Irish potatoes:
certified seed
other
12 months from
Sept. 15, 19l|6
20,380,721* Pound
90,000,000
60,000,000
Pound
Pound
Quota Filled
200
7^,710
Cuban filler tobacco un
stemmed or stemmed (Other
than cigarette leaf tobacco)
and scrap tobacco
Calendar Year
Red cedar shingles
Calendar year
1,396,H23
Square
1,002,702
Molasses and sugar sirups
containing soluble nonsugar solids efual to more
than 6# of total soluble
solids
Calendar year
1 ,500,000
Gallon
3l*6,6h2
Silver or black foxes,
furs, and articles: Foxes
valued under $250 each
and whole furs and skins
May-Rov. 19^6
All countries
67,012
IFumber
26,018
Tails
12 months from
Dec. 1, 19l*5
Pound
(unstemmed
Quota
22,000,000 equivalent) filled
5,000 Piece
Paws, heads or other
separated parts
tt
5OO
Piece plates
it
550 Pound
Articles, other than
piece plates
Pound
500 Unit
1*90
121
TREASURY DEPARTMENT
Washington
FOR IMMEDIATE RELEASE
Tuesday, October 8, 1946
Press Service
No. S-105
The Bureau of Customs announced today preliminary figures shewing the
imports for consumption of commodities within quota limitations provided for
under trade agreements, from the beginning of the quota periods to September 28,
1946, inclusive as follows:
Commodity
Imports a?
of Sept.
28, 1946 .
: Unit
:
Established Quota
: of
:Poriod and Country: Quantity :Quantity
Whole Milk, fresh
or sour
Calendar year
3,000,000
Gallon
7,554
Cream, fresh'or sour
Calendar year
1,500,000
Gallon
1,947
Fish, fresh or frozen
filleted, etc., cod
haddock, hake, pollock,
cusk, and rosefish
Calendar year
20,380,724.
Pound
White or Irish potatoes:
certified seed
other
12 months from
Sept. 15, 1946
Quota
Filled
200
74,710
Pound
000
Pound
000
90.000.
60.000.
Cuban filler tobacco un' stemmed or stemmed (Other
than cigarette leaf tobacco)
aiid scra.p tobacco
Calendar year
Red cedar shingles
Calendar year
1,396,423
Square
1,062,70?
Molasses and sugar sirups
. containing soluble non
sugar solids equal to more
than 6% of total soluble
solids
Calendar year
1,500,000
Gallon
346,642
Silver or black foxes, furs,
and articles: Foxes valued
under $250 each and whole
furs and skins
May-Nov. 1946
All countries
67,012
Number
26,018
Tails
Paws, heads or other
separated parts
Piece plates
Articles, other than
piece plates
12 months from
Dec. 1, 1945
Pound
(un st emmc d rQuot a
22,000,000 equivalent) Filled
5,000
Piece
it
500
Pound
it
550
Pound
it
500
Unit
,
—
490
121
2
COTTON CARD STRIRS1made from cottons having a staple of less than 1-3/16.inches
in'length, COMBER "WASTE, LAP WASTE, SLIVER WASTE, ADD ROVING WASTE, WHETHER
OR NOT MANU1AGTURED 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 mad© 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 ; IMPORTS
Established : TOTAL IMPORTS
33-1/
of : Î Sept. 20, 194<
Country of- Origin : TOTAL QUOTA ; Sept. 20, 1946,
to Sept • 28, 191*6; To tal Quo ta : to Sept. 28,1/
19U6
1,441,152
4,323,457
United Kingdom......
. **
239,690
CctnsicLci*
.
.
.
.
.
—
.....75,807
227,420...
Francp..*,. *.......
69,627
••• •
69,627
British India.......
. ■«. .
••
•• . •-22,.74?
68,240
Netherlands.
'
'
44,388
••• ■.14,796.
Switzerland.........
**
- •
..12,853,..
38,559
Belgium.,...........
*•
—
..........................
.
341,535
Japan.-..............
—
17,322
T; ■•■
CXixUS/••• •#♦•••••?*••
*
•
—
.•
•
8,135
Egypt-.-..........*...
*
*
.............
6,544
Cuba................
—
....25,443
76,329
Germany,........ .
*•
7,088
sglf • 21,263
X1)3<lyT
\
?:fo
'
mm
TOTALS
l/
5,482,509
69,627
Included in total imports, column 2.
-oOo-
1,599,-886 '
-
FOR IMMEDIATE RELEASE
OCTOBER 8, 191*6
S - fo b
The Bureau of Customs announced'-today that.preliminary reports from the
collectors,.of c,uatom.s: shovr. imports- of cotton and. cotton waste ..chargeable to the
import auotas established by.t-he President1s 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, 1946, to September, 28, 19l*6.
COTTO IT HAVING- A STAPLE OF LESS TRAN 1-11/16 INCHES (OTHER THAN HARSH OR ROUGH
COTTON OF LESS THAN 3/4 INCH IN STAPLE’LENGTH AND CHIEFLY. USED Ilf THE MANUFACTURE OF BLANKETS AND BLANKETING, AND'OTHER THAN LINTERS)* Annual quotas
commencing September 20, by Countries of Origin:
(In Pounds)
Country of
•Origin
Staple !
length le,ss
'than 1-1/8" .... ::
!
;Imports Sept,j
,Estabiishêd
f2®, 1946, to :
Quota
jSept. 28, 191*6:
.
Egypt and the Anglo"Egyptian Sudan..
783,816
Peru............... ....
247,952British 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...... .
T .... T... t
237
Ecuador.... .v
.
.
9,333
Honduras .
752
Paraguay..... ..........
871’
Colombia....
124
Iraq. ..........
195
British East Africa,
2,240
Netherlands East Indies.
71,388
Barbados...............
Other British Nest
Indies 1/ ..........
21,321
Nigeria. ...............
5,377
Other British Uest
Africa 2/ .......
16,004
Other French Africa.3/.
689
Algeria and Tunisia.
..
...
. . . ,
. .
.
.
..
,
. . . .
14,516,882
1/
2/
3/
Staple, length 1-1/8" or more
. but less, than 1-11/16»
Established .Imports Sept,
Quota
; 20, 1946, to
45,656,420 Sept-* 28, 191*6
...... .
f '*'
10 ,298,261
1 ^*70,622
—
063,067
688,897
. .
mm
. *
mm
. .
. , ,
.'•
*
m
m*
8 ,883,259
Ai
fty793
OXO
[Uy
—
. .
»
• •
mm'
vmm
mm
ggj,
...--
»
ggg
mm
mm
mm
-
-
mm
-
-
mm
mm
".m m
-
10,353,9ll6
45,656,420
Other than Barbados, Bermuda, Jamaica, Trinidad, and Tobago,
Other than Gold Coast and Nigeria.
Other than Algeria, Tunisia, and Madagascar,
11,768,883
''
’
TREASUEÏ DEPARTMENT
Washington
FOR IMMEDIATE RELEASE,
Tuesday, October 8, 1946»
Press Service
No, S-106
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* 194-0* March 31* 1942* and
June 29* 1942* during the period September 20* 1946* to September 28* 1946,
COTTON HAVING A STAPLE OF LESS THAN 1-11/16 IN CHES (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)
Staple length.less :Staple length 1-1/8" or more
; but less than 1-11/1.6"
than 1-1/8”
•
:Imports Sept «Established : Imports Sept,
(
:Established :20, 1946* to:
Quota
: 120* 1946* to
:Sept. 28,1946:45*656,420 : Sept, 28,1946
:
Quota
:
:
Country of
Origin
9
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.
Barbados.... .
Other British West
Indies l/.,..........
Nigeria......... .......
Other British West
Africa 2/............
Other French Africa 3/.. ...
Algeria and Tunisia..... ..•
1/
2/
3/
163* 067
688,897
3 ,883,259
618,723
'
—
475*124
871
71/388
16*004
689
—
14 *516*882
10* 298,261
1,470,622
—
—
—
—
—
—
—
;—
—
—
' —
—
—
—
—
—
—
-
—
—
—
—
—
10 ,353,94.6
45*656 *420
Other than Barbados* Bermuda* Jamaica* Trinidad* and Tobago,
Other than Gold Coast and Nigeria,
Other than Algeria* Tunisia, and Madagascar,
—
—
—
11*768,883
\
-
2
-
COTTON CARD STREPS 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)
Country of Origin
.
.Establisned
•TOTAL QUOTA
United Kingdom.... .
Canada..... ........
Franc e...............
British India........
Netherlands........
Switzerland....... ..
Belgium...... .......
Japan...............
China.... ......
Egypt..... ..........
Cuba........ ........
Germany......... .
TOTALS
1/
* TOTAL IMPORTS
:ESTABLISHED:
IMPORTS
• Sept. 20, 194-6$ • 33—1/3/ of:Sept#, 20, 194-6,
. -fco Sept», 28, 194-6•.Total Quota:to Sept. 28,394-61/
4,323,457
239 $690
227,4-20
63,627
68 ,24-0
4.4,388
38,559
341$535
17,322
8,135
6$ 544
76,329
a , 263
5,482,509
69$ 627
r-*
—
—
r—
69,627
Included in total imports, column 2»
-oOo-
1,A41,152
—
75,807
22,747
14,796
12,853
—
—
*rr
—
25,443
7,088
1 ,599,886
—
—■
—
—
—
—■
—
**
—
—
—
—
@FedFRASER