The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
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M . 1 3
JUN 14 1972
TREASURY DEPARTMENT
7
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2
^
6
-
Treasury licenses. Thus, for example, we do not propose to prevent
the satisfaction from blocked assets of claims arising out of li
censed transactions with respect to such assets nor to prevent payment
of service charges on blocked assets. Tfie also do not intend that the
operations of blocked business enterprises which are now carried on
under license shall, in general, be curtailed.
«The Attorney General has authorized me to say that the foregoing
statement reflects his point of view and that the Department of Justice
intends to approach foreign funds problems in a spirit of practical
cooperation with the financial community. However, as you know, the
Department of Justice will not take jurisdiction under the announced
program until September 1, 1948, and if any substantial changes in
conditions should occur in the interim, the Attorney General must, of
course, take them into account.«
TREASURE DEPARTMENT
Washington
>o
mm
RELEASE/' MORNING NE5HSPAPERS
Saturday , May
■
_________
No.
The Treasury announced today the issuance of Public Circular No* 37
which provides for a census of property blocked in the United States as of
June 1, 1948. Copies of the circular and of Form TFR-600, on which census
reports will be made, are expected to be available by June ID at the Federal
Reserve Bank of New York. The census reports are required to be filed by
July 15, 1948. The census will not cover any property which has been un
blocked. In addition, amendments to General Licenses Nos. 11, 32 and 32A
and Public Circular No. 36 were issued and the revocation of paragraph 3 of
General License No. 74 was announced. These Licenses relate to payments
in the United States and remittances abroad for living expenses and miscel
laneous expenditures.
The Treasury also released the following text of a letter which
Secretary Snyder sent to Mr. I. C. R. Atkin, Chairman of the Foreign Exchange
Committee* This letter, it was pointed out, arose out of conversations with
members of the financial community respecting certain questions raised by
them in connection with the program outlined in the National Advisory Coun
cil’s letter of February 2, 1948, to Senator Vandenberg.
’’Reference is made to the conversation which the Attorney
General and I had with you about problems arising in connection with
the program outlined in the National Advisory Council letter of
February to Senator Vandenberg.
”1 wish to take this opportunity to confirm the following:
’’The program set forth in the letter of February is directed
toward the disposition of assets which remain blocked as of June 1,
1948. It is not intended to relate to assets which have never been
blocked under Executive Order No. 8389, as amended, including assets
which have accrued as a result of current transactions authorized
under Treasury’s General License No. 94, nor to blocked assets which
have been released under either specific or general Treasury license.
Of course, notwithstanding this general position, the Government will
block or vest ary property in which it may have reason to believe
there is an enemy interest.
’’Although it will be necessary in the furtherance of the
announced program for the Government to revoke or amend various out
standing licenses, it is our intention to issue specific revocations
or amendments and to give adequate notice before taking any such
action. It is not intended that such action should prevent the com
pletion of transactions already commenced in proper reliance on
TREASURY DEPARTMENT
Information Service
RELEASE MORNING NEWSPAPERS
Saturday, May 29 , 194 8 .
WASHINGTON, D .C .
No * S-?46
The Treasury announced today the issuance of Public
Circular N o . 37 which provides for a census of property blockedin the United States as of June 1,.1943.
Copies of the circular
and of Forra TFR-600, on which census reports will be made, are
expected to be available by June 10 at the Federal Reserve Bank
of New York.
The census reports are required to be filed by
July 15, 19^8.
The census will not cover any property which
has been unblocked.
In addition, amendments to General Licenses
Nos. 11, 32 and 32A and Public Circular No. 36 were issued and
the revocation of paragraph.3 of General License No* 7^ was
announced.
These Licenses relate to payments in the United
States and remittances abroad for living expenses and miscel
laneous expenditures.
The Treasury also released the following text of a letter
which Secretary Snyder sent to M r . I. C .. R. Atkin, Chairman of
the Foreign Exchange Committee.
This letter, it was pointed out,
aróse out of conversations with members of the financial com
munity respecting certain questions raised by them in connection
with the program outlined In the National Advisory Council's
letter of February 2, 19^ 8 , to Senator Vandonberg*
"Reference is made to the conversation which the.
Attorney General and I had with you about problems
arising in connection with the program outlined in
the National Advisory Council letter of February to
Senator Vandenberg.
"I wish to take this opportunity to confirm the
following:
^"The program set forth in the letter, of February
is directed toward the disposition, of assets which,
remain blocked as of June 1, 19^ 8 . It is not intended
to relate to assets which have never been blocked under
Executive Order No. 8389 , as amended, including assets
which have accrued as a result of current transactions
authorized under Treasury‘s General License No. 9 k ,
nor to blocked assets which have been released under
either specific or general Treasury license.
Cf
course, notwithstanding this general position, the
Government will block or vest any property in which it
may have reason to believe there is an enemy interest.
-
2
-
"A1though it will be necessary in the
furtherance of the announced program for the
Government to revoke or amend various outstanding
licenses, it is our intention to issue specific
revocations or amendments and to give adequate
notice before taking any such action.
It is not
intended that such action should prevent the com
pletion of transactions already commenced in proper
reliance on Treasury licenses. Thus, for example,
we do not propose to prevent the satisfaction from
blocked assets of claims arising out of licensed
transactions with respect to such assets nor to
prevent payment of service charges on blocked as'sets.
We.also do nob intend that the operations of blocked
business enterprises which are now carried on under
license shall, in general, be curtailed.
"The Attorney General has authorized me to say
that the foregoing statement reflects his point of
view and that the Department of Justice intends to
approach foreign funds problems in a spirit of
practical cooperation with the financial community.
However, as you know, the Department of Justice will
not take jurisdiction •under the announced program
until September 1, 1948, and if any substantial
changes in conditions should occur in the interim,
the Attorney General must, of course, take them
into account."
oOo
TREASURY DEPARTMENT
Washington
RELEASE, MORNING NEWSPAPERS
Saturday. May 29. 19Z.S
.............
No* S-7-47
Secretary Snyder announced today the unfreezing of Spain,
by its inclusion in General License No, 53. This action not only
removes all controls over current transactions with S p a m but also
unblocks the property of most residents of that country under Genera
License No, 53A, General License No, 52 which authorized certain
transactions by or on behalf of Spain or any national thereof, has
been simultaneously revoked.
-ooOoo-
RELEASE, MORNING NEWSPAPERS
Saturday, May 2 9 , 19^8»-
No. S-7^7
Secretary Snyder announced today the unfreezing of
Spain by its inclusion in General License No. 53.
This
action not only removes all controls over current trans
actions vith Spain but also unblocks the property of
most residents of that country under General License
No. 53A.
General License No. 52 'which authorized certain
transactions by or .on behalf of Spain or any national
thereof, has been simultaneously revoked.
oOo
On May 27th the Treaeuiy received the sum of
$l£3,172«2l* fron the government of Finland, le
pre seating the serai-annual payment of Interest in
the amount of $128,31*2*00 under the Funding Agreement
of Ifay 1, 1923| $13,692*06
m
account of the semi
annual payment on the annuity due under the postpone
ment agrément of Hey 1, 191*1, mod $21,132*18 on account
of the
payment on the annuity due under the
postponement agrément of October 11*, 191*3«
these payments represent the entire amount due from
the government of Finland on June 12# 191*8, under these
agreements«
TREASURY DEPARTM ENT
W ASHINGTON, D . C .
Information Service
RELEASE MORNING NEWSPAPERS
Saturday, May 29. 19^8.
No. S-T'+o
On May 27th the Treasury received the sum o f
$ 163 ,172.24 from the Government of Finland,
represent
ing the semi-annual payment of interest in the amount
of $128,345.00 under the Funding Agreement of May 1,
1923 ; $ 13 ,695.06
on account of the semi-annual payment
on the annuity due under the postponement agreement
of May 1, 1941, and $21,132.18 on account of the semi
annual payment on the annuity due under the postponement
agreement- of October 14, 1943»
These payments represent the entire amount due
from the Government of Finland on June 15, 1948, under
these agreements,
-mt m m tm mms&,
o i/ f
Friday, May 26, 191*8.
The Secretary of the Treasury today announced tlie subscription aid
allotment figures eith redact to the current offering of 1-l/B percent
Treasury Certificate9 of Indebtedness of Series 1-191*9, to be dated
June 1, IfMI, open to the holders of Treasury Certificates of Indebted
ness of Series S-19L8, maturing June 1, 191*8, and 1-3A percent Treasury
Bonds of 191*8, maturing June l£, 191*8«
Subscriptions and allotnents were divided among the several Federal
Reserve Districts and the Treasury as follows*
Federal Reserve
District
Certificates
Exchanged
Bonds
Exchanged
Total
Exchanges
Boston
Rev fork
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St, Louis
Minneapolis
Kansas City
Dellas
San Francisco
Treasury
|
♦
♦
TOTAL
t
29,682,000
923,108,000
32,71*8,000
66,916,000
17,720,000
36,520,000
351,688,000
56,503,000
1*3,1*99,000
65,61*1*,000
1*7,770,000
HO,062,000
5,361,000
♦1,617,531,000
137,811»,000
1,10*6,759,000
68,163,000
103,185,000
51,173,000
1*1,639,000
351,332,000
66,051,000
61,331,000
77,263,0»
39,381,000
237,787,000
1,160,000
$2,683,038,000
167,1*96,000
2,370,177,000
100,911*000
170,101,000
68,893,000
78,159,000
503,020,000
122,551*, 000
101*, 830,000
11*2,907,000
37,151,000
377,81*9,000
6,521,000
Ut,300,569,000
TREASURY DEPARTM ENT
W ASHINGTON, D . C .
Information Service
IMMEDIATE REIEASE
Friday, May 28, 1948.
No. S-749
The Secretary of the Treasury today announced the subscrip
ts,on-and allotment figures with respect to the current offering
of 1-1/8 percent Treasury Certificates of Indebtedness of Series
E-19^9, to be dated June 1, 1948, open to the holders of Treasury
Certificates of Indebtedness of Series E - 19.48* maturing June 1,
1948, and 1-3/4 percent Treasury Bonds of 1Q4 o , maturing June 15,
1948.
Subscriptions and allotments were divided among the several
Federal Reserve Districts and the Treasury as follows:
Federal Reserve
District_______
Certificates
Exchanged
Bonds
Exchanged
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
S t . Louis
Minneapolis
Kansans City
Dallas
San Francisco
Treasury
$
$
TOTAL
29,682,000
923.418.000
■ 32,748,000
13 7 ,8 14 ,0 0 0 $
1,446,759,000
68.16 3.000
66.9 16.000
103 ,185,000
17.720.000
51.173.000
41.639.000
351.332.000
66.051.000
36.520.000
151.688.000
56.503.000
43.499.000
65.644.000
47.770.000
140,062,000
6 1 .3 3 1 .0 0 0
77.263.000
Total
Exchanges
167,496,000
2 ,370 ,177,000
io c;9ii,oo o
17 0 .10 1.0 0 0
68.893.000
78.159.000
503.020.000
122.554.000
104.830.000
142.907.000
8 7 .1 5 1 . 0 0 0
5 ,3 6 1,000
39.381.000
237.787.000
377.849.000
1 ,160,000 3___ 6 ,5 2 1,0 0 0
$1,617,531,0 00
¿2,683,038,00 0 $4,300,569,000
0O0
won nmMiss, mwmm msmPA&m,
Saturday, May 29, 1948.
S -
7 $ T ~0
Th© secretary of the treasury announced last evening that the tenders for
#1,3.00,000,000, or thereabout#, of 91-day Treasury bills to be dated June 3 and to nature
September 8, 1948, which were offered May 25, 1948, were opened at the federal Reserve
Banks on May 28,
the details of this issue are as follows:
total applied for * ^1,904,^4,000
toted accepted
- 1,100,709,000
Average prise
{includes #30,590,000 entered on a noncompetitive basis and accepted in full
at the average priee shown below)
* 99*748 Equivalent rate of diseount approx. 0.997$ per annum
Range of aeeepted competitive bids:
• 99*752 Equivalent rate of discount approx. 0.981$ per annum
. 99.747
*
*
*
*
"
1.001$ *
*
High
Low
(45 percent of the amount bid for at the low priee was aeeepted)
federal Reserve
District
total
Applied for
total
Accepted
Boston
Hew York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
#
#
San Francisco
TOTAL
16,384,000
1,501,118,000
14,170,000
17,545,000
965,000
2,523,000
71,115,000
2,452,000
3,395,000
17,553,000
6,047,000
51,967,000
#1,704,334,000
15,109,000
954,273,000
7,130,000
10,695,000
965,000
2,523,000
54,065,000
2,287,000
2,900,000
17,498,000
6,047,000
27,217,000
#1,100,707,000
TREASURY DEPARTM ENT
Information Service
Wa s h in g t o n , d .
RELEASE MORNING NEWSPAPERS
Saturday, May 29 , 1948.
■
No.. 3-750
The Secretary of the Treasury announced last evening that
the tenders for $1,100,000,000, or thereabouts, of 91-day
Treasury bills to be dated June 3 and to mature September 2,
1948, which were offered May 25, 19*1-8, were opened at the
Federal Reserve Banks on May 28.
The details of this issue are as follows;
Total applied for » $1,704,334,000.
Total accepted
- 1,100,707,000 (includes $30,590,000 entered
on a non-competitive basis and accepted
in full at the average prices shown'below)
Average price - 99*748 Equivalent rate of discount approx.•0.997$
per annum
Range of accepted competitive bids;
High « 99*752 Equiv. rate of discount approx* 0 .981$ per annum
Low - 99.747
M
"
"
"
!?
1.001$ "
.
(45 percent of the amount bid for at the low price was accepted)
Federal Reserve
District
Total .
Applied for
Total
Accepted
Boston
Hew York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St, Louis
Minneapolis
Kansas City
Dallas
San Francisco
$
$
TOTAL
6.047.000
51.967.000
15 ,109,,000
954 ,273,,000
7 ,130,,000
10 ,693,,000
965,,000
2 ,523,. 000
54 ,065,,000
2 ,287,,000
2,900.,,000
,000
17
6 ,047,,000
27 ,217,,000
$1,704,334,000
$1, 100 ,707,,000
15,384,000
1 , 501 , 118,000
14.170.000
17.645.000
965,000
2,523,000
.
71 115.000
2.452.000
3.395.000
17.553.000
0O 0
broad
p a r t ic i p a n t s
American
as
life as
leaders
finest
in
services.
fields
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of
A m e r i c a ’s
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cherish
would
f ut i I e .
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become
"
l think
keeping
21
with
tragically
MS ¡ d U » t
it
peculiarly
the
tenets
democracy
that
officers,
out
of
knowledge
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broadened
your
years
four
should
you
as C o a s t
the
in
give deep
welfare
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human
as
well
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professional
t
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and
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our
Guard
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of
to
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T I— ’ •
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immediate
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will
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be
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demands
/)
I hopej
active
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economy
has
raised
well-being
of
to
made
to
people,
Our
nation
greatest
lf|we
history.
challenge»
spiritual
we
that
to a
It
that
level
our
economy
security
year
in a n d
to
all
and
fail
in
t r a d i t io n a l I y
to
be
for all
of
with
it s
hopes
physical
is o u r
can
to m e e t
those
level
and
year
is c o n f r o n t e d
chaIlenge
were
material
in
provide
our
the
people
maintain
demonstrate
7 s 'I
our
unprecedented
task
~
ou t .
the
history.
that
of
attainment
a
reluctance
to d e f e n d
our
W"
I
civilization.
wrong
made
or
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more costly
to
was ever
those
who
it.
But
is n o t
force
No
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more
defense
a matter
of
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in b e i n g .
our
mere
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military
Basically,
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believe
full
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society
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of
ultimate
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economy
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work.
men
values
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life.
a
r e s p o n s i b i Iity
t<jf h e l p )make
The
our
America»
- 20A
security
of
our
Americans
are
It
an
is n o t
the U nited
nation.
to
the
♦
country.
no t
a military
idle
phrase
States
We a re
is a
of
understanding
among
it
true
can
only
have
nations.
by
this
c o u n t r y ’s p r o f o u n d
by
of p e a c e
would-be
rulers
la st
has
of
at
times
thirty
and
But
fighting
Twice
ways
devoted
cooperation
it.
the
in t h e
that
peace-loving
that
peace
people.
to s a y
sincerely
promotion
is e q u a l l y
We
we
for
years,
attachment
been
the
mistaken
world
for
to
V
The
enthusiasm
graduate
of every
for p r o s p e c t s
of
a t t a i n m e n t . in C o a s t
Guard
both
and
understandabIe
1 subscribe
* ■
I do
want
to
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help
need
find
peaceful
and
civilization
affairs
is
praiseworthy.
But
in p a r a l l e l ,
f o r all
ways
professional
enthusiasm.
to s t r e s s ,
compelling
to
that
Academy
trained
the
minds
of a s s u r i n g m a n k i n d
progressive
in w h i c h
to w o r k
out
his
the
role
destiny.
♦
I have
the
Coast
already
Guard
spoken
plays
of
in a s s u r i n g
the
19
7 07
economic
relationships.
them,
need
we
a I I the
To
help
assistance
*ÿ
our
educational
contribute
and
of
spiritual
Let
U
can
moral
vigor
dependability.
wise
tolerance
to
play
as
attributes
be d e s i r e d
of
those
to
progress
fair
through
positions
of
play
confidence
are
the
greater
r e s p o n s i b iIity.
fair
that
roe u r g e
devotion
greatly
institutions
youthful
sol ve
the
among
For
years
and
who
to
greater
tolerance
keystones
men.
and
and
to mutual
18
No
other
qualification
important
in m e a s u r i n g
integrity
of
a determining
shaping
of
this
his
of
every
o f f i c e r ’s
is
factor
in
citizenship.
man
nation
must
fidelity
to
ethical
his
good
an
character
equally
value
is m o r e
to
rest
high
standards,
as
The
himself
and
basically
ideals
the
upon
and
exemplified
daily
A
Our
complex
post-war
problems
world
of
is o n e
social
to
and
of
in
- i? -
7'r/
c o n e Iu s i ve I y r t t t
is n o t
evaluation
examination
/I
/
f II
Your
by
attitude
manner
welfare
you
exercise
among
the
prove
to
of
the
contribute
efficiency
to
and
j o b , “t h e
to
its
it s
--
signs
and
quality
the
your
concern
authority
these
to
whom
are
will
your
character
Coast
spirit,
for
over
which
of
to
paper.
regulate
your
yourselves
--
your
subordinates
outward
superiors
ervice
you
affairs,
the
\\ 0 0 \
toward
in w h i c h
personal
you
an
subject
Guard
its
essential
nature.
-
IS -
responsibilities
cannot
tooay..
and
too
Ana
the
our
generations
ingredient
with
of
your
Coast
to
test
we
meet
individually
decide
for
the
many
.,
qualifications
Guard
emphasize.
that
sincerity
wnich
to c o m e .
I wish
will
will
nation
competent
which
time
earnestness,
collectively,
of
citizenship
emphasized
responsibiIities,
course
for
good
strongly
determimation
these
and
be
of
7 r/
duty
Only
ingredient
- 15 -
iffl
career.
But
the
leadership,
which
He
has
the
these
an
part
the
professional
the
an
further
only
Academy
graduate.
considerable
of A m e r i c a n
citizenship.
days,
active
vast
ana
of
which
is t o m a i n t a i n
of
this
and
means
undertakings
life,
nation
this
a constructive
national
peaceful
obligation
ana
critical
playing
in
of
is n o t
confronts
obligation
In
duty
the
and
ultimate
to
the
attain
prosperous
of
our
purpose
greatness
a
world.
Our
14
-
Universities,
receive
Superintendent
Academy
the
Science.
of
study
science
other
been
of
degree
other
of
four
for
your
years
in b a s i c
courses,
skills
and
subjects.
and
in s e a m a n s h i p
possess
adaptability
of
signifies
theoretical
training
to
Guard
Bachelor
cultural
both
the
Coast
engineering
professional
found
from
instruction
had
practical
of
completion
and
have
the
degree
and
in c e r t a i n
You
of
This
successful
-
and
a high
a Coast
and
you
order
Guard
have
]
- 13 won
admission
to
enlisted
ranks
the
and
Army
cadets
enlisted
ranks
the
of
the
on
cadet
armed
of
with
authority
the
an
Association
Al l
you
Act
of
«ere
of
in
entrance
men,
of
the
competed
civilians
exacting
of
262
another
services.
today,
the
one
or
these
on
the
tests.
under
Congress
American
th
Guard,
from
even
So
Of
from
status
applicants
Academy's
Coast
dutjjj*SS
successful
terms
|8|
Academy
Navy.
remaining
to
of
this
the
admitted
1
and
experience,
assignment
needs
of
and
training,
pn/Whatever
defense
may
for
military
scale
the
require.
Preparedness
for
possible
war
necessitates
it s
peacetime
service
military
III
status.
Just
as
independence
organized
have
for
other
the
I find
note
helped
Revenue
wars
Coast
it of
that
veterans
33
of
to
the
man
Marine
the
newly
Service,
furnished
Guard
¡far fo r
so
candidates
officer
corps.
particular
interest
of
52 g r a d u a t e s
today's
to
iI
(ft I i t a r y
i
forces
r
This
for
arrangement
a century
h is t o r y ; t h e
it s
civil
capably
war.
Those
Coast
important
-fully
Coast
and
Guard
no
services
more
the
a half
functions
effectively,
military
ano
Guard
of
has
branch
the
in
an
d the
and"
well
American
executed
efficiently
civil
military
prepared,
worked
of
performed
during
same
has
and
our
it s
recent
duties
world
functi ons
of
peacetime
applications
Coast
through
Guard
in
is
o r g a n ization.
Coast
Guard
have
of serving
their
*j8y
mu
country
in b o t h
the
pursuits
‘ ''•
and the
pursuits
Throughout
of
has
or
life,
the
less
dual
major
spoken
to
peacetime,
our
and
r-'
history,
had
services
war
peace.
its
organization
of
to
le ad
since
forms
a
a more
it r e n d e r s
of which
civilian
your
I have
life
BN
in
part
of
our
7 art
10
has
So,
while
the
gone
ahead
at
in t h e
past
service,
an
decade,
u t i l i z i n g all
knew ledge
march
of
has
of
astonishing
the
a century
and
a
kept
in
its
step
with
scientific
development.
Service
peacetime
unique
this
that
work
to
iI l u s t r a t e s
opportunity
half
of
the
war*time
developments
uses
Guard,
accelerated
the
in a d a p t i n g
scientific
Coast
pace
its a c c u m u l a t e d
techniques
- I think
of s c i e n c e
the
vital
the
m e n ,of t h e
of
— 9A by
such methods
search
ocean
and
emergency
Iv
rescue
station
reporting,
as
7■
the
air-sea
teams;
service
for
navigational
assistance.
and
by an
weather
aid
and
j
- 9 -
Coast
Guard
founded
the
ago.
The
have
seen
advances
^ —
was
in
the
aid
today when
Revenue Marine
ten
in
changes
years
and
y o u r Service.
1939,
the
in t h e
outbreak
Lighthouse
Coast
of
Service
was
life
saving
been
supplemented
such
devices
as
Service
Guard
war,
and
the
added
responsibilities.
and
158
he
years,, p a r t i c u iar ly,
dramatic
Inspection
other
activities
fast
placed
with
•
Marine
to
Navigational
operations
and
radar,
its
have
amplified
loran,
by
racon;
employment
safe
of
armed
' "ederal
contraband..
His
cutters
Revenue
against
determined
resulted
in a p p r o p r i a t i o n s
of
cutters
these
Customs
offices
to
Georgia.
of
the
and
the
Coast
together
their
to be
Guard
Hamilton
&
for
assigned
early
ten
to
the
have
start
Treasury
progressed
accomplishment
specialized
“' B u t
this
Marine,
in t h e
efforts
from Massachusetts
From
Revenue
to
of
r e s p o n s i b i i i t ies.
could
not
possibly
The
Treasury
Guard
few
their
months
in t h e i r
results
and
the
beginnings
apart,
and
the
implementation
of
Alexander
the
efforts
Hamilton.
of
our
the
Congress
in
April,
the
State,
Treasury
Six
Hamilton,
the
Treasury,
wrote
pointing
out
the
first
were
of
a
steps
the
one
man,
the
Constitution,
and
months
first
only
Following
ratification
Departments.
Coast
1789,
created
War
later
Secretary
a prophetic
necessity
of
the
letter,
of
Guardsmen.
«as p e r f o r m e d m a n y t i m e s b y S e c r e t a r i e
of
other
many
years;
times
again.
meritorious
almost
paid
it w i l l
Coast
endless,
The
and
fill
volumes.
the
of
of
deeds
seems
tributes
these
deeds
Such
Guard
honor
performed
list
Guard
in r e c o g n i t i o n
wouId
be
rosters
!
of
yesterday
and
today,
reminding
us
|
of
the
the
men
traits
of
the
of
character
Coast
Guard
that
typify
Service.
Guard
in
service
your
5 -
than
official
|||§ I
the
motto
one
«-
implied
"Semper
Paratus^i
FuI I d e v o t i o n
a characteristic
or d i s p l a y e d
course
of
to d u t y
acquired
casually
incidentally
a Coast
is n o t
in
the
Guardsman's
experience.
I have
on
one
occasion,
as
the
Treasury,
to
more
than
Secretary
commend
instance
Coast
of
officially
of
valor
Guardsman
or
had
some
on
the
the
pleasure
outstanding
part
a group
of
of
a
Coast
-4fist
which
of
those
the
|HP
government
nation
agencies
regards
as
indispensable.
The
Coast
described
Guard
somewhat
"multifunctional
status."
there
But
is n o
service
to
on
calls
of
resourcefuIness.
inspiring
the
skill,
you
will,
day-to-day,
f-"Jib|
■
this
upon
pattern
a
with miIitary
of
And
as
it a s
¡§
response
d e m o n s t r a t io n s
more
agency
describe
the
been
formally
ceiling
year-to-year
has
it f o r
courage
there
for
is n o
Coast
and
3A
..
saving
p e r f o r m a n c e , of
setf~$acrifiee
and
it s
other
significant
certain
••
of
In w a r
heroism
and
innumerable
public
in p e a c e »
and
services,
a position
high
and
on
»ay
the
be
which
organization
has made
safety
and
security
of
the
r^V^lnce
the
founding
of
our
the
this
Republic*
the C o a s t
Its c o u n t r y
war
with
in w h i c h
Th e
we
has
distinction
have
essential
government
Guard
been
worth
activity
to
served
in e v e r y
engaged.
of a n y
is j u d g e d
by
the
i
quality
and
the
quantity
services
which
American
people.
with
record
it s
it r e n d e r s
of t h e
to
The Coast
of unmatched
the
Guard,
life-
young
to
American
contribute
security
United
to
than
this
his
that
States
leaving
a greater
c o u n t r y ’s
of
Coast
Guard.
in s e a m a n s h i p ,
the
amenities^
devote
and
character
a body
of
service
Academy,
to
to
mery
sciences
the
your
long n o t e d
country.
Treasury
the
pride
in
whole
the
Nation,
to
are
grounded
and
th e
energy
leadership
service
and
in the
You
"well
distinguished
The
opportunity
of
for
their
Department,
may
significant
well
take
c o n t r 5 b u t ions
Admiral Derby, Admiral O'Neill, Graduates
and Members of the Cadet Corps, and Guests:
It
me
to
Is a v e r y
join
program.
real
in t h i s
me
satisfaction
to
have
of
to
you
who
as
and
in
are
receiving
officers,
my
sincere
good
this#
I know
your
of n o
for
commencement
It g i v e s
extending
pleasure
great
the
52
your
warm
career
privilege
graduates
commissions
congratuI ations
wishes
chosen
personal
for
success
profession.
which
offers
Igi
a
The following address by Secretary Snyder at the
Sixty-Second Commencement of the United States Coast G^ard
Academy,,New London, Conn., is scheduled for delivery at 2 : J 0
P . M . , E.D. S.T., Friday, June 4, l 9 ^ j and is for release
at that time.
ADDRESS BY SECRETARY SNYDER
AT THE
SIXTY-SECOND CGlSiENC]mmm
UNITED states coast guard academy
NEW LONDON, CONNECTICUT
JUNE 4, 1948
treasury
departm ent
WASHINGTON, D .C .
Information Se rvice
No. S - 751
Summary of attached address by Secretary Snyder, For
release at 2:30 PJU. E*D>S.T.. Friday,. June 4, 194S
cmmomwT
address, u
.
s
.
coast guard a c ad e m y
iij know of no career which offers a young American a greater opportunity to
contribute to his country* s security than that of service in the United States
Coast Guard,”
The last ten years have seen dramatic changes and advances in Coast Guard
activities.
The ma^ch of science has gone ahead at an astonishing pace* and, the Coast
Guard has kept step in its techniques with this accelerated scientific development.
The work of the Service in adapting wartime scientific developments to vital
peacetime uses illustrates the unique opportunity the men of the Coast Guard have
of serving their country in both the pursuits of war and the pursuits of peace.
Professional leadership is not the only duty of an Academy graduate. He has the
further obligation of American citizenship — a responsibility which cannot be too
strongly emphasized today. The earnestness and determination with which we m
this responsibility will decide the course of our nation for many generations
”1 want to stress the compelling need for all trained minds to help find ways
of assuring mankind a peaceful and progressive civilization in which to work out hi
destiny.”
It is in keeping with the tenets of our democracy that the Academy graduates
should give deep thought to problems of human welfare and human progress as well as
to the immediate demands of their professional tasks.
TREASURY DEPARTMENT
Washington
The following address by Secretary Snyder at the
Sixty-Second Commencement of the United States Coast
Guard Academy, New London, Connecticut, is scheduled
for delivery at 2:30 P.M., E D.S.T., Friday',' June '4,
I9A 8Y and is for release'at'.''that 'time.'
"" *
It is a very real pleasure for me to join in this commence
ment program.
It gives me great personal satisfaction to have
the privilege of extending to you 52 graduates who are receiv
ing your commissions as officers, my warm congratulations and
sincere good wishes for success in this, your chosen profession.
I know of no career which offers a. young American a greater
opportunity to contribute to his country's security than that
of service in the United States Coast: Guard. You are leaving
this Academy, "well grounded in seamanship, the sciences and
the amenities,” to devote your energy and character to the
leadership of a body of men long noted for distinguished service,
to their country.
The Treasury Department, and the whole Nation,
may well take pride in the significant contributions which this
organization has made to the safety and security of the United
States. For, since the founding of our Republic, the Coast
Guard has served its country with distinction in every war in which we have been engaged.
The essential worth of any government activity is judged
by the quality and the quantity of the services which it renders
to the American people.
The Coast Guard, with its record of
unmatched life-saving performance, of heroism and self-sacrifice
in war and in peace, and its other innumerable and significant
public services, may be certain of a position high on the list
of those government agencies which the nation regards as
indispensable.
The Coast Guard has been described somewhat formally as a
"multifunctional agency with military status.”- But describe it
as you will, there is no ceiling on the day-to-day, year-to-year
response of this Service to the calls upon it for demonstrations
of skill, courage and resourcefulness.
And there is no more
inspiring pattern for Coast Guard service than the one implied
in your official motto — "Semper Paratus,”
Full devotion to
duty is not a characteristic acquired casually or displayed
incidentally in the course of a Coast Guardsman's experience.
I have had the pleasure on more than one occasion, as Secretary
of the Treasury, to commend officially some outstanding instance
of valor n n the part of a Coast Guardsman or a group of Coast
Guardsmen.
The same gratifying duty was performed many times
S-751
by Secretaries of other years * it will be performed many times
again. The list of meritorious Coast Guafd deeds seems almost
endless, and the tributes paid in recognition of these deeds
would fill volumes.
Such men honor the Coast.Guard rosters of
yesterday and today, reminding us of the traits of'"character
that typify the men of the Coast Guard Service.
The Treasury and the Coast Guard had their beginnings only
a few months apart, and the first steps in their implementation
were the results of the efforts of one man, Alexander Hamilton.
Following the ratification of our Constitution, the Congress in
April, 1789 , created the State, Treasury and War Departments.
Six months later Hamilton, the first Secretary of the Treasury-,wrote a prophetic letter, pointing out the necessity of employ
ment of armed cutters to safeguard the Federal Revenue against
contraband. His determined efforts resulted in appropriations
for ten of these cutters to be assigned to Customs offices
from Massachusetts to Georgia.
From this early start of the
Revenue Marine, the Treasury and the Coast Guard have progressed
together in the accomplishment of their specialized responsibili
ties . But Hamilton could not possibly have foreseen the extent
and scope of Coast Guard activities today when he founded the
Revenue Marine 158 years o,go. The last ton years, particularly,
have seen dramatic changes and advances in your Service . In
1939* the Lighthouse Service was placed in the Coast Guard and
with the outbreak of war, the Marine Inspection Service was
added to its other responsibilities. Navigational aid and life
saving operations have been supplemented and amplified by such
devices as radar, loran, raconj.by such methods an the air-sea*
search and rescue teams; and by an ocean station service for
weather reporting, navigational, aid and emergency assistance.
So, while the march of science has gone ahead at an
astonishing pace in the past decade, the Coast Guard, utilizing
all of its accumulated knowledge of a century and a half of
service, has kept step in its techniques with this accelerated
scientific development.
I think that the work of the Service in
adapting war-time scientific developments to vital peacetime
uses illustrates the unique opportunity the' men of thè Coast
Guard have of serving their country in both the pursuits of war
and the pursuits of peace.
Throughout its history, your organization has had to lead a
more or less dual life, since it renders the major services of
which I have spoken to our civilian life in peacetime, and also
•forms a part of our military forces..
#This arrangement has worked well for a century and a half of
American history; the Coast Guard ho„s executed its civil functions
efficiently and effectively, and no branch of our military services
performed its duties more capably during the recent world war.
Ihose same civil functions of the Coast Guard in peacetime Would
again have important military applications in the event of another
- 3 emergency -- and the Coast Guard is fully prepared, through
organization, experience, and training, for military assignment
on whatever scale the needs of defense may require.
Prepared
ness for possible war service necessitates its peacetime mili
tary status.
Just as veterans of the War for Independence helped to man
the newly organized Revenue Marine Service, so have other wars
furnished candidates for the Coast Guard officer corps.
I find
it of particular interest to note that 38 of today’s 52 gradu
ates won admission to this Academy from the enlisted ranks of
the Coast Guard, the Army and the Navy.
Of the 262 cadets
remaining on duty here, 66 were admitted to cadet status from
the enlisted ranks of one or another of the armed services. All
of these successful applicants competed on even terms with
civilians in the Academy's exacting entrance tests .So today, you men, under authority of an Act of Congress
and the Association of American Universities, receive from the
Superintendent of the. Coast Guard Academy the degree of
Bachelor of Science.
This degree signifies your successful
completion of four years of study and instruction in basic
science and engineering courses, and in certain other cultural
subjects. You have had both theoretical and practical training
in seamanship and other professional skills and you have been
found to possess a high order of adaptability for a Coast Guard
career.
But the duty of professional leadership is not the only
obligation which confronts an Academy graduate. He has the
further and considerable obligation of American citizenship.
In these critical days, this means playing an active and a con
structive part in the vast undertakings of our national life,
the ultimate purpose of which is to maintain the greatness of
this nation and to attain'a peaceful and prosperous world.
Our
responsibilities of good citizenship cannot be too strongly
emphasized today. And the earnestness, sincerity and determina
tion with which we meet these responsibilities, individually
and collectively, will decide the course of o.ur nation for many
generations to co m e .
Character is the remaining ingredient of your qualifications
for competent Coast Guard duty which I wish to emphasize.
Only
time will test that Ingredient conclusively, for it Is not
subject to evaluation by an examination paper. Your attitude
toward your job, the manner in which you regulate your personal
affairs, your concern for the welfare o.f subordinates over whom
you exercise authority -- these are among the outward signs
which will prove to yourselves and to your superiors the quality
oi^character you contribute to the Coast Guard Service -- to its
spirit, its efficiency and its essential nature. .No other
qualification is more important in measuring an officer's Worth.
- 4 -;
Integrity of character is equally a determining factor in
the shaping of good citizenship. The value of every man to
himself and to this nation must rest basically upon his
fidelity to high ideals and ethical standards’, as exemplified
in his daily actions.
Our post-war world is oiie of complex problems of social
To help solve them, we need all
the assistance that our educational institutions can contribute
of youthful moral vigor and spiritual dependability.
and economic relationships.
Let me urge wise tolerance and devotion to fair play as
attributes greatly to be desired of those who progress through
the years to positions of greater and greater responsibility.
For tolerance and fair play are the keystones to mutual confi
dence among men.
The enthusiasm of every Academy graduate for prospects
of professional attainment in Coast Guard affairs is both
understandable and praiseworthy.
I subscribe to that enthusiasm,.
But I do want to stress, in parallel, the compelling need for
all trained minds to help find ways of assuring mankind a
peaceful and progressive civilization in which to work out his
destiny.
I have already spoken of the role the Coast Guard plays
in assuring the security of our country. We Americans are not
a military peo p l e . It is not an idle phrase to say that the
United States is a peace-loving nation,... We are sincerely devoted
to the promotion of cooperation and understanding among nations.
But it is equally true that at times we can only have p e a c e .by
fighting for it. Twice in the last thirty years, this country's
profound attachment to the ways of peace has been mistaken by
would-be rulers of the world for a reluctance to d.efend our
civilization. No error was ever more wrong or more costly to
those who made i t .
•But defense of our civilization is not a matter of mere
military force in being. Basically, it must rest on a society
of free men who believe in the ultimate values of a full and a
peaceful l i f e .
It is equally a responsibility of each one of us to help make
our free economy work.
The American economy has raised the
material well-being of our people to a level unprecedented in
history,
it is our task to maintain that level and to demonstrate
that our economy can be made to provide security for all of our
people, year in and. year out.
Our nation is confronted with
the greatest challenge In Its history.
If we were to fail to
meet^that challenge, all those hopes of spiritual and. physical
a/ttainment we traditionally cherish would become tragically
futile. But we shall not fail.
5
*d rH ^
>
1>5 ft Cj
I think it peculiarly in keeping with the tenets of our -■
emocracy that you as Coast Guard officers, out of the accumuated knowledge and broadened vision of your four years in these
alls, should give deep thought to these problems of human
elfare and human progress as well as to the immediate demands of
our professional tasks,
I hope that you will be active
articipants in the broad fields of American life as a whole,
s well as leaders in one of America's finest services.
0O0
TREASURY DEPARTMENT
WASHINGTON, D .C .
Information Service
TC -
,T H E
T R E A S U R Y
5
C A L E N D A R
Scheduled Departmental Activities
WEEK OF MAY 30 - JUNE 5, 19^8
OFFICE OF THE SECRETARY
Tuesday, June 1. 10:30 A«M, Secretary
Snyder appeared before the Senate Appro
priations Committee on the ECA Appropria
tion Bill.
Cancer Society in the District of Colum
bia. Mr. Bartelt attended in his
capacity as National Chairman of Federal
Employees,
COMPTROLLER OF THE CURRENCY
Thursday, June-3, 2 P.M, Secretary
Snyder, accompanied by Mrs. Snyder and
Miss Drucie Snyder, Rear Admiral Merlin
O ’Neill, Acting Commandant, United States
Coast Guard, and Edward H. Foley, Jr,,
Assistant Secretary of the Treasury,
leaves for New London, Connecticut, to
attend graduation exercises at the Coast
Guard Academy.
Friday. June A. 2:30 P.M. Secretary
Snyder addresses the graduating class of
the Coast Guard Academy, Billard Hall,
New London.
(Text available Wednesday
A,M,)
OFFICE OF THE FISCAL ASSISTANT SECRETARY
Tuesday, June 1. Edward F. Bartelt,
Fiscal Assistant Secretary, attended a
victory meeting, celebrating the success
of the 194-8 Fund Campaign of the American
June 2 - 6, Comptroller of the Currency
Preston Delano, and W, P. Folger, Chief
National Bank Examiner, will attend the
meeting of the District of Columbia
Bankers Association at White Sulphur
Springs, West Virginia,
Friday and Saturday. June U and 5, Deputy
Comptroller C. B. Upham will attend the
annual meeting of the New Hampshire
Bankers Association at Portsmouth, N. H.
BUREAU OF INTERNAL REVENUE
Friday. June A, E. A. Sellers, Chief of
Actuarial Section, Pension Trust Division,
will conduct informal discussions on
’’Pension Plans for Employees of Life In
surance Companies” at a meeting of the
Middle Atlantic Actuarial Club in
Baltimore,
2
WEEK OF JUNE 6 - 1 2 ,
OFFICE OF THE SECRETARY
Other Scheduled Speeches
September 22» Speech before the an
nual meeting of the National Associa
tion of Supervisors of State Banks,
Louisville, Kentucky.
19^8
conducting a survey Of Security Loan ac
tivities in the South.
Frida?/. June 11. Leon J. Markham, National Director of Sales, will be in
Chicago, Illinois, attending a meeting of
the Association of Western Railroads in
connection with the reinstatement of the
Payroll Savings Plan in the western rail
ways.
OFFICE OF THE UNDER SECRETARY
BUREAU OF NARCOTICS
jSunday. June 6. 6 P.M. Under Secretary
Wiggins will deliver the commencement ad
dress at Clemson Agricultural College,
Çlemsoçt, South Carolina. Subject; ttThe
Continuing War for Democracy.n (Text
available Thursday P.M.)
Tuesday. June 8, Commissioner of Nar
cotics Harry J. Anslinger will speak at
the annual convention of the American
Drug Manufacturers Association to be held
at Bretton Woods, New Hampshire, June" 7
to 10.
COMPTROLLER OF THE CURRENCY
BUREAU OF INTERNAL REVENUE
Friday and Saturday. June 11 and 12«
Deputy Comptroller G. B. Upham will at
tend a meeting of the Vermont Bankers As*
spciation at Manchester, Vermont.
On Monday. June 14. he will attend a
meeting of the Nev; Hampshire Bankers Asiociation to be held at Bretton TJoods,
Npw Hampshire, from June 12 - 15*
Friday. June 11. Ralph C. Staebner,
Chief of the Public Utilities Section of
the Engineering and Valuation Division,
Internal Revenue, will address the Ac
counting Division of the Pennsylvania
Motor Trucking Association at the PennHarris Hotel, Harrisburg, Pennsylvania.
DIVISION OF SAVINGS BONDS
UNITED STATES COAST GUARD
National Director Vernon L. Clark will be
at Jacksonville, Florida, all week
Lieutenant Commander J. D. McCubbin was
honored by election to the Chairmanship
of the Search and Rescue Committee for
the North Atlantic at the Regional Air
Navigation meeting of ICAO at Paris,
France,
-J NOTE: Items for the Treasury Calendar may be phoned to the Information Service
over extensions 2041, 2042, 2043; Internal Revenue extensions 650, 651; Coast
Guard. Treasury extension 2993*
Treasury Department
Bureau of letamai Havanna
Washington 2$, B. C.
far Balease*
frati Service We*
7
*>
/ ^
^
Sterga J* Schoeneman, Commissioner of Internal Revenue, announced
today the appointaient of Henry 0. Lowenhaupt of Clayton, Missouri, aa a
member of the Excess Profits fax Counoil, effective immediately*
Hr* Lowenhaupt eat bom April 3 » 1913 at St* Louie, Missouii and ha
attended Harvard University there he received hie law degree in 1936*
Except for serving in the A m y 1942-1945, tie hae been practicing
law in Missouri ever ainoe 1936*
TREASURY DEPARTMENT
Information Service
WASHINGTON, D .C .
IMMEDIATE RELEASE,
Wednesday , June 2, 1948,
N o . S-752
George J. Schoeneman, Commissioner of Internal
Revenue, announced today the appointment of Henry C.
Lowenhaupt of Clayton, Missouri, as a member of the
Excess Profits Tax Council, effective immediately,
. Mr . Lowenhaupt was born April 3*. 1913 at St, Louis,
Missouri and he attended Harvard University where he.
received his law degree in
1936 .
Except for serving in the Army 1942-1945, he has
been practicing law in Missouri ever since 1936.
oOo
1^
-n But this “Wo^ cannot b© a mere negation*
^
It mist be rich in
its overtones of af tirmatSon*
Democracy is a positive and net a negative thing*
expect it to seise the heart of all peoples —
all mankind trill sing —
We cannot
to be the song which
if it merely substitutes for the tyranny
of the state, the tyranny of man over man.
slow in making this charge*
Our adversaries are not
It should be our privilege to refute them*
As college graduates, you are members of a privileged class*
Only about five percent of all adults in South Carolina have four or
more years of college education*
With this privilege goes a vast
responsibility of virtuous leadership*
lou must accept this responsi
bility in trusteeship for all mankind, for civilisation itself, and for
preserving “the last best hope of man“ on earth*
$■
public, forges the chains of its own enslavement.
ship which shuts out the
Educational leader
lig h t of truth, no matter what it reveals,
and denies freedom of the mind, wrecks its own temple*
Labor leadership
that is seised with the lust for power and sacrifices the common good
on the altar of class advantage, betrays the cause it professes to
serve*
Political leadership that uses office to fatten its power and
multiply personal gains at the expense of public welfare, erects a
treacherous structure that will not stand*
Religious leadership that
refrains from a vigorous interpretation of the social responsibility
of man, reveals decadence and loss of virtue*
In time of national peril, leadership without virtue betrays every
cause that it professes to serve| without courage and energy, it deserts
the mission with which it is charged*
Our forefathers, authors of liberty, plead today with the free
men of America to reassert their liberties and give to this Nation the
virtuous and vigorous leadership that is the only guarantee of its
preservation*
Throughout the world the grasping hand of the state is throttling
the body and spirit of free men*
Even in America it has been felt*
f « close our eyes to reality if we fail to recognize that in our own
country the threat of the loss of individual freedom looms before us*
Is the sanctity of the free spirit of the individual man to be destroyed
as the price for the preservation of human society?
The armament of dictators says ^Xes, * but the eternal spirit of
free men says "No*®
America must rediscover its faith in democracy*
It must match
the seal of free men for their freedom against the fanaticism of slaves
of dictators*
The democratic process itself demands public education
and a rebuilding of the fires in the hearts of the multitude for the
defense of democracy*
In that task, the prime responsibility is with the thinking leader»
ship of this Nation, the so-called middle classes —
that is, yourselves*
If we lose our democracy in America with the inevitable wiping out
of the middle class, the cause will be nothing more than the suicide of
that class*
This country stands first in the world In the proportion
of the educated, of the middle level of economic achievement, of men
and women who have risen above the mass in accomplishment.
greatest reservoir of leadership of any nation in the world*
It has the
As a
democracy, it possesses the most productive and the most stimulating
social and economic order of any nation of any time.
Its natural
recourses and Its geography provide a base for the highest degree of
social and economic well-being of any people.
Its people are imbued
with the consciousness of the power and dignity and rights of the
Individual as are no other people*
All of the farce», material and
spiritual, are ours for whatever national life we choose to make*
factor of success is present*
Every
The one factor of failure that threatens
us is in the failure of virtuous leadership*
Here leaderehip is not enough*
democracy digs Its own grave*
Without virtue, leadership In a
Business leadership that springs from
greed and selfishness, and neglects the employee, the consumer and the
75>'3
a battle, but a war} that the measure of the struggle Is not In years,
but in centuries and eras,
lie face no new struggle today, but rather
a new urgency In an old contest»
Russia fears less the military power of America
philosophy of self-government hy free men*
than the American
They know that the spirit
of freedom eventually will undermine and destroy the authoritarian state
wherever it exists*
This country faces an immediate practical necessity*
We must
r e a m ourselves spiritually in the armor of a supreme devotion to
democracy as the most precious possession of the human race*
It is
in this rearmament that dangers to America are the greatest*
We are the custodian of a democracy through inheritance from
ancestors who achieved the freedoms which we enjoy*
As sons of a rich
father, our principal contribution to cur present good fortune is the
accident of birth*
breathe*
We accept our freedoms as casually as the air we
We are reaping where we have not sown*
like spoiled children*
we complain of the imperfections of democratic government and belittle
democratic methods*
At times we have even questioned *What Price
Democracy?”
It is time for critical self-examination.
but empty words of an did tradition?
no longer worth living for?
Are freedom and liberty
Are human rights under democracy
Is freedom of opportunity to worship, to
speak, to achieve, not a bequest to future generations worth dying for?
These questions America must answer out of its heart and soul*
the answer hangs the future of man for a thousand years*
And on
-
7
-
is a spiritual hunger in the world today that is not being satisfied
by* American exports#
»God knows we need food and coal to survive, *
said a European delegate to Lake Success, »but unless America can take
the lead in providing a vital faith, in giving us a song that mankind
can sing, all her exports will merely postpone the day of reckoning,
and the world will die anyway#1*
The faith of America is democracy*
Like wheat and coal, it is an
export article; but the demand for It abroad will largely depend cm
the success with which we apply it here at home#
We know that the Russians in their propaganda magnify every flaw
in our system out of all proportion#
indignation*
This arouses us to righteous
But righteous indignation is not enough; we must defend
our system with the same seal with which they defend theirs; and we must
mend its flaws#
A working, vital democracy here in the United States is,
in the long run, the greatest enemy of communism#
The Russian system is not new*
succession of despotism of conquests
History records an almost endless
of men to enslave their fellowmen*
Tyranny and oppression have been the rungs of a ladder up which mankind
has climbed in the march of civilisation#
It is as old as history Itself#
Hew techniques for the suppression of the human spirit are but adaptations
of older ones.
Mankind has faced the eclipse of spiritual freedom through
successive generations#
Today, the old problem in a new setting confronts us#
We are die*
covering that freedom Is never won; that the fight for democracy is not
«ingle end*
Just as it may be truly «aid of the United State« that it
is a superstate because it is wealthy, so it ©ay be truly said of
Russia that it is poor largely because it is a superstate*
It is an old Baying that with vast wealth goes vast responsibility#
This is true of nations as well as of persons*
Such is the responsi
bility of the United States today*
This responsibility is fourfold.
First,
m
have the responsibility to use as much as say be
necessary of our vast resources to maintain the military might neces
sary to sustain such a balance of power that Russia will not see fit
to overrun the centers of Western culture*
Second, we have the responsibility of using every means compatible
with the maintenance of the integrity of the Western culture to keep
the peace in our divided world, until our adversaries learn the unwisdom
of endeavoring to settle partial disputes with total weapons*
Third, we have the responsibility of extending a helping hand
to our Western brothers to enable the© to reconstruct their economies
and to show their peoples the benefits of liberal government and liberal
economics*
These three things are each important j and carrying them out will
offer many of you an importunity to help in this crisis of our culture*
it '
ft 11 . v**
j
,;V\
But/is the fourth of our responsibilities which I have most in mind in
exhorting you to fight the good fight in the continuing war for democracy
The fourth responsibility of the United States is spiritual.
Dr*
Fosdick said In the report fro® which I have already quoted that nThere
superstate®, although it continues to tower above all remaining nations*
This classification of states is, of course, purely on the basis
of economic, political, and military power.
The contributions of the
United States to the culture of Western society are of great importance!
but both the United States and Russia are latecomers to the scene of
culture,
Neither has made a contribution equal in overall significance
to that of the countries of Western Europe ** including in this term,
of course, Great Britain*
It is « w e
¿.n tue
caxculus of power that the
United States and Russia are superstates*
I
need not labor the fact of the military might of Russia*
has been too much labored already*
It
But a few facts on the economic
power of the United States may be to the point*
The continental United
States contains less than 7 percent of the world’s ppulation; but it
produces more than half of the world’s steel, more than a third of the
world’s coal, about half of the world’s aluminum, over 4.0 percent of
the world’s electric power, nearly 40 percent of the world’s cotton, and
contains about 30 percent of the world’s railroad mileage*
The United States towers over the rest of the world economically.
In this respect, as in many others, we are utterly different from our
sister superstate*
We are a superstate because of our vast wealth*
at it**
We cannot help it.
We do not ”work
Russia is just the opposite*
She taxes
every human and material resource In order to be what she is*
She is a
superstate only because of a fanatic devotion of her resources to that
in the
physical and In the social sciences.
Man has acquired tremendous
power to destroy his felloes, and even to destroy his environmentj but
he has not made equal progress in learning to apply these new discoveries
with discretion.
The theories of the natural scientists contemporary with Marx have
been subject to examination, revision, and re-revision, until they have
taught us how to smash the atom and how to conduct bacteriological
warfare.
But the theories of Marx stand in half of the world unchallenged
and unchallengeable, except at the cost of life and liberty.
presented as idols of perfection arrived before their time.
They are
And who
will say that the Western World does not have idols of its own*
the crisis, then, is that we should quickly learn the art of living
in a divided world in which the adversaries have suddenly come into the
possession of means of destroying one another.
although it
The time will come,
may be far distant, when differences in social theories w i n
be settled by facts and figures.
But our immediate problem is to prevent
attempts to settle them by bombs and bacteria.
So much for the nature of the present crisis.
Our next proposition
is that the United States is the strategic point at which the issue in
this crisis is likely to be decided.
It is a plain fact that the second World War has left the world
with two superstates —
the United States and Russia.
Commonwealth of Rations —
good in the world —
The British
which has been, on balance, such a force for
has been definitely subordinated to these two
~
3-
In the present ease the "affair or course of action’1 is our whole
civilisation and culture*
What, then, has brought about the present crisis?
The reason
most often assigned is that the world is divided against itself.
magnificent vision of. "one world" has vanished.
Our
All of half of the
world and part of the other half are under the control of dictators*
Ideologies clash*
Dictators deceive their peoples and strive for world
domination*
This is true| and we deplore it.
But it does not in itself make
this a time of crisis*
Our vision of "one world* came before its time} and its disappearance
has precipitated us, not into a crisis, but into normalcy*
As Dr.
Raymond Fosdick said in his review of 1947 for-The Rockefeller Foundation,
"• * * As a matter of fact, ideologies have always divided
mankind} the rifts are centuries old} there has never been one
world. What we are attempting today is something that has never
in recorded history been accomplished* We have barely begun on
what Is unquestionably the noblest as well as the most discouraging
task which statesmen and nations have ever undertaken*
"If the aim were to iron out all the differences which
exist among men ** to achieve a utopia of unruffled unanimities
«*» it would be fatuous even to begin it. The world of the
future *• if any world survives «* will be a world of diversity,
held together by a conception of common interests. It will be
a world in which many political faiths and economic creeds are
tolerated and widely differing points of view fertilise each
other for the common good*"
But, if division and disunity are normal, what then is the
character of our crisis?
The crisis lies, it seems to me, In the
wide gap which has opened in the past generation between our attainments
* 2 *
appropriate; but because I believe them to be true, and a commencement
address is an appropriate occasion to utter them.
lour four years of college have given you more than a great fund
of information*
They have given you, or should have given you, an
inquiring attitude of mind and a disposition to accept sweeping and
■■•,■- "
1:
'- ' '
sententious utterances only after careful analysis. Since such
utterances abound in commencement addresses* a college education may
i
be considered, in one sense, as a protracted preparation for receiving
such addresses with a healthy and balanced skepticism *** prepared to
accept them only if they meet the standards of a reasoned analysis*
It is in this spirit that I say to you, “This is the time and this is
the place that our civilisation will fight one of the major battles In
its long upward progress*
You will be participants in this battle*
You will share the responsibility for victory or failure.8
This statement
breaks
down analytically into three propositions!
First, this is a period of crisis.
Second, the United States is the
strategic point at which the Issue in this crisis is likely to be
decided.
And, third, there is something which you can do to help turn
the decision.
Let us examine these propositions in that order.
First, this is a period of crisis.
abased one.
time.
The term “Crisis8 is a much
It is often used to mean a bad, unpleasant, or troubled
This is an incorrect use of the term.
means a time of decisive change.
Literally, a crisis
Webster1s New International Dictionary
defines a crisis as that “point of time when it is decided whether ary
affair or course of action must go on, or be modified
or terminate.8
( ,
% $T
Commencement Address by A* L. It»
Wiggins, tinder Secretary of the
Treasury, at Clemscm Agricultural
College, Clemson, South Carolina,
June 6, 19AB.
THE CONTINUING WAR FOR BMQCBAgT
Graduating classes at many different times and in many different
places have been told that the age in which they are living is the
most critical in the history of civilization* and that the place where
they live is the battlefield on which the critical struggle will be
decided«
I naturally hesitate, therefore, to cry, "This is the time and
this is the place!»j hut 1 believe that it is so*
1 have faith in the ultimate attainment by the human race of
moral and material standards far transcending anything which you or
I ever have seen or ever shall see« But we know that the long upward
struggle of man has been broken by many periods of sharp retrogression*
I believe that the issue of whether civilization is to advance onward
to higher moral and material goals during your lifetime and that of
your children and of your children’s children, or whether it is to
enter a period of retrogression such as that which followed the break-up
of the classical civilization, will be decided during your lifetime*
and that it will be decided primarily in the United States of America«
These are big words* and I say them in all humility*
I say them,
not because I am giving a commencement address, and that makes the®
TREASURY DEPARTMENT
Information Service
WASHINGTON, D .C .
s - 753
S u m m a ry o f a t t a c h e d
F o r r e le a s e
sO
a d d r e s s b y U n d e r S e c r e t a r y W ig g in s »
a t 6 P .M .. E . S . T . . S unday. June 6 . l f r
m
«THE CONTINUING WAR FOR DEMOCRACY«
C i v i l i z a t i o n i s f i g h t i n g o n e o f t h e m a jo r b a t t l e s i n i t s lo n g u p w a rd
p r o g r e s s . I t i s a tim e o f c r i s i s , n o t b e c a u s e th e w o r ld i s d iv id e d a g a in s t i t s e l f
b u t b e c a u s e o f t h e w id e g a p w h ic h h a s o p e n e d i n t h e p a s t g e n e r a t i o n b e tw e e n o u r
a t t a in m e n t s
in
th e
p h y s ic a l and i n
th e
s o c ia l s c ie n c e s .
«Man h a s a c q u i r e d tr e m e n d o u s p o w e r t o d e s t r o y h i s f e l l o w s , a n d e v e n t o
d e s t r o y h i s e n v ir o n m e n t ; b u t h e h a s n o t m ade e q u a l p r o g r e s s i n l e a r n i n g t o a p p ly
t h e s e new d i s c o v e r i e s
w ith
d is c r e t io n .”
We m u s t q u i c k l y l e a r n t h e a r t o f l i v i n g i n a d i v i d e d w o r l d i n w h ic h t h e
a d v e r s a r i e s p o s s e s s m ea ns o f d e s t r o y i n g o n e a n o t h e r . E v e n t u a l l y , d i f f e r e n c e s i n
s o c i a l t h e o r i e s w i l l b e s e t t l e d b y f a c t s a n d f i g u r e s ; o u r im m e d ia t e p r o b le m i s t o
p r e v e n t a t t e m p t s t o s e t t l e th e m b y bom bs a n d b a c t e r i a .
T h i s c r i s i s p la c e s u p o n t h e U n i t e d S t a t e s a f o u r f o l d r e s p o n s i b i l i t y . F i r s t
i s m i l i t a r y p r e p a r e d n e s s ; s e c o n d , t h e u s e o f e v e r y m eans t o k e e p p e a c e i n t h e
w o r l d u n t i l o u r a d v e r s a r i e s l e a r n t h e u n w is d o m o f w a r ; t h i r d , g i v i n g o u r W e s te r n
b r o th e r s a h e lp in g h a n d ; f o u r t h , s p i r i t u a l le a d e r s h ip .
« T h e f a i t h o f A m e r ic a
a r t i c l e ; b u t t h e d em and
fo r
w h ic h we a p p l y
it
is
it
d e m o c ra c y . L ik e w h e a t a nd c o a l, i t i s a n e x p o r t
a b ro a d w i l l la r g e ly depend on th e s u c c e s s w ith
h e r e a t h o m e .”
We ro u s t d e f e n d o u r s y s te m w i t h
d e fe n d t h e i r s ;
a n d we m u s t m end i t s
th e
«A w o r k i n g , v i t a l d e m o c r a c y h e r e
th e
g r e a t e s t e ne m y o f c o m m u n is m .«
sam e z e a l w i t h
w h ic h t h e
R u s s ia n s
fla w s #
in
th e U n ite d
S ta te s
is ,
in
th e
lo n g r u n ,
TREASURY DEPARTMENT
Information Se rvice
Wa s h in g t o n , d .c .
S - 753
Summary of attached address -by. Under Secretary Wiggins»
For release at 6 P«M». S 0S 0T 0, Sunday.. June 6, 194-8
<
»THE CONTINUING WAR FOR DEMOCRACY”
Civilization is fighting one of the major battles in its long upward
progress» It is a time of crisis,, not because the world is divided against itself
but because of the wide gap which has opened in the past generation between our
attainments in the physical and in the social sciences0
»Man has acquired tremendous power to destroy his fellows, and even to
destroy his environment; but he has not made equal progress in learning to apply
these new discoveries with discretion»»
We must quickly learn the art of living in a divided world in which the
adversaries possess means of destroying one another»/ Eventually,, differences in
social theories will be settled by facts and figures; our immediate problem is to
prevent attempts to settle them by bombs and bacteria»
This crisis places upon the United States a fourfold responsibility» First
is military preparedness; second,, the use of every means to keep peace in the
world until our adversaries learn the unwisdom of war; third, giving our Western
brothers a helping hand; fourth, spiritual leadership»
»The faith of America is democracy» Like wheat and coal, it is an export
article; but the demand for it abroad will largely depend on the success with
which we apply it here at home0”
We must defend our system with the same zeal with which the Russians
defend theirs; and we must mend its flaws0
»A working, vital democracy here in the United States is, in the long run,
the greatest enemy of communism»”
TREASURY DEPARTMENT
Washington
The following address by Under Secretary A.^L. M.
Wiggins, at the Commencement of Clemson Agricultural
College, Clemson, South Carolina, is scheduled for
delivery at 6:00 P.M., E.S.T., Sunday, June b, 19^Qj
sjkT T s for release at that t i m e . :
THE CONTINUING WAR FOR DEMOCRACY
Graduating classes at many different times and in many
different places have been told that the age in which^they
are living is the most critical in the. history of civilization]
and that the place where they live is the battlefield on
which the critical struggle will be decided.
I naturally hesitate, therefore, to cry, "This is the
time and this is the placel"; but I believe that it is so.
I have faith in the ultimate attainment by the human race
of moral and material standards far transcending anything
which you or 1 ever have seen or ever shall see. But we know
that the long upward struggle of man has been broken by many
periods of sharp retrogression.
I believe that the issue of
whether civilization is to advance onward to higher moral and
material goals during your lifetime and that of your children
and of your children's children, or whether It is to enter a
period of retrogression such as that which followed the break
up of the classical civilization, will be decided during your
lifetime: and that it will be decided primarily in the United
States of America.
These are big words; and I say them in all humility.
I say them, not because I am giving a commencement address,
and that makes them appropriate; but because I believe them
to be true, and a commencement address is an appropriate occa
sion to utter them.
Your four years of college have given you more than a
great fund of information:! They have given you, or should
have given you. an inquiring attitude of mind and a disposition
to accept sweeping and sententious utterances only after care
ful analysis. Since such utterances' abound in commencement
addresses, a college education may be considered, in one sense,
as a protracted preparation for receiving such addresses with
a healthy and balanced skepticism -- prepared to accept them
only if they meet the standards of a reasoned analysis, It is
S-753
2
in this spirit that I say to you, "This is the time and this
is the place that our civilization will fight one of the major
battles in its long upward progr e s s . Yo u will be participants
in this battle. Yo u will share the responsibility for victory
or failure.11
This statement breaks down analytically into three
propositions:
First, this i s ‘a period of crisis.
Second,
the United States is the strategic point at which the issue
in this crisis is likely to be decided. And, third, there is
something' which you can da to help turn the decision.
Let
us examine these propositions in that order.
First, this is a period of crisis.
The term "crisis" is
a much abused one.
It is often used to mean a bad, unpleasant,
or troubled time.
This is an incorrect use of the term.
Literally, a crisis means a time of decisive change. W e b s t e r »s
New International Dictionary defines a crisis as that "point
of time when'Xt' 'is'decided'' whether any affair or course of
action must go on, or be modified or terminate."
In the
present case the "affair or course of action" is our whole
civilization and culture..
What, then, has brought about the present crisis?
The
reason most often assigned is that the world is divided
against itself.
Cur magnificent vision of "one world" has
vanished. All of half of the world and part of the other half
are under the control of dictators.
Ideologies clash. D i c
tators deceive their peoples and strive for world domination.
This is true; and we deplore it.itself make this a time of crisis.
But it does not in
Our vision of "one wo rld” came before its time; and its
disappearance has precipitated us, not into a crisis, but
into normalcy. As Dr. Raymond Fosdick said in his review of
19^7 for the Rockefeller Foundation,
". . . As a matter of fact, ideologies have
always divided mankind; the rifts are centuries old;there has never been one world. What we are attempt
ing today is something that has never in recorded
history been accomplished. We have barely begun on
what is unquestionably the noblest as well as the
most discouraging task which statesmen and nations
have ever undertaken.
"If the- aim were to Iron out all the dif
ferences which exist among men -- to achieve a utopia
of unruffled unanimities -- it would be fatuous even
to begin it. The world of the future -- if any
- 3 world survives -- will be a world of diversity,
held together by a conception of common interests.
.It will be a world in which many political faiths
and economic creeds are tolerated and widely
differing points of view fertilize each other for
the common g o o d ."
But, if division and disunity are normal, what then is
the character of our crisis?
The crisis lies, it seems to
me, in the wide gap which has opened in the past generation
between our attainments in the physical and in the social
sciences, Man has acquired tremendous power to destroy his
fellows, and even to destroy his environment; but he has not
made equal progress in learning to apply these new discoveries
with discretion.
The theories of the natural scientists contemporary with
Marx have been subject to examination, revision, and re-revision,
until they have taught us how to smash the atom and how to
conduct bacteriological warfare. But the theories of Marx
stand in half of the world unchallenged and. unchallengeable,
except at the cost of life and liberty.
They are presented
as idols of perfection arrived before their time. And who will
say that the Western World does not have idols of its own.
The crisis, then, is that we should quickly learn the
art of living in a divided world in which the adversaries have
suddenly come into the possession of means of destroying one
another.
The time will come, although it may be far distant,
when differences in social theories will be settled by.facts,
and figures.
But our immediate problem is to prevent attempts
to;settle them by bombs and bacteria,.
So much for the nature of the present crisis-.
Our next
proposition is that the United States is the strategic point
at which the issue in this crisis is likely to be decided.
It is a plain fact that the second World War has left
the world with two superstates -- the United States and
Russia, The British Commonwealth of Nations -- which-has
been, on balance, such a force for good in the world ~~ has
been definitely subordinated to these two superstates, although
it continues to tower above all remaining n a t i o n s .
This classification of states is, of course, purely on
the basis of economic, political, and military p o w e r . The
contributions of the United States to the culture of Western
society are of great importance; but both the United States
and Russia are latecomers to the scene of culture. Neither
has made a contribution.equal In overall significance to that
of the countries of Western Europe -- including in this term,
of course, Great Britain.
It is primarily in the calculus
of power that the United States and Russia are superstates.
- k
I need not labor the fact of the military might of Russia.
It has been too much labored already. But a -few facts on the
economic power of the United States may be to the p o i n t .
The continental United States contains less than 7 percent of
the w o r l d 's .population; but it produces more than half of
the world's steel, more than a third of the world's coal, about
half of the world's aluminum, over 40 percent of the world's
electric power, nearly 40 percent of the world's cotton, and
contains about 30 percent of the w o r l d 's railroad m i l e a g e .
The United States towers over the rest of the world
economically.
In this respect, as in many others, we are
utterly different from our sister superstate.
We are a superstate because of our vast wealth. We do
not "work at i t ." We cannot h e l p it. Russia is Just the
opposite.
She taxes every human and material resource in
order to be what she i s . She is a superstate only because of
a fanatic devotion of her resources to that single end.
Just
as it may be truly said of the United States that it is a
superstate because it is wealthy, so it may be truly said of
Russia that it is poor largely because it is a superstate.
It is an old saying that with vast wealth goes vast
responsibility.
This is true of' nations as well as of p e r s o n s ,
Such is the responsibility of the United States today.
This responsibility is fourfold.
First, we have the responsibility to use as much as may
be necessary of our vast resources to maintain the military
might necessary to sustain such a balance of power that Russia
will not see fit to overrun the centers of Western culture.
Second, we have the responsibility of using every means
Compatible with the maintenance of the integrity of the
Western culture to keep the peace in our divided world, until
our adversaries learn the unwisdom of endeavoring to settle
partial disputes with total w e apons.
Third, we have the responsibility of extending a helping
hand to our Western brothers to enable them to reconstruct
their economies and to show their peoples the benefits of
liberal government and liberal economics.
These three things are each important; and carrying them
out will offer many of you an opportunity to help in this
crisis of our culture.. But it is the fourth of our responsi- \
oilities which I have most in mirxd In exhorting you to fight
the good fight in the continuing war for democracy.
The fourth responsibility of the United States is
spiritual. Dr * Fosdick said in the report from which I have
already quoted that "There is a spiritual hunger in the world
today that is not being satisfied by American exports.
'God
knows we need food and coal to* survive, ' said a European dele
gate to Lake .Success,.'but unless America can take the lead
in providing a vital faith., in giving us a song that mankind
can sing, all her exports will merely postpone the day of
reckoning, and the world will die anyway,'"
The faith of America is democracy.
Like wheat and coal,
it is an export article; but the demand for it abroad will
largely depend on the success with which we apply it here at
home.
We know that the Russians in their propaganda ma-gnify
every flaw in our system out of all proportion.
This arouses
us to righteous indignation. But righteous indignation is
not enough; we must defend our system with the same zeal with
which they defend theirs; and we must mend its f l a w s . A
working, vital democracy here in the United States is, in the
long run, the greatest enemy of communism.
The Russian system is not new. History records an almost
endless succession of despotisms, of conquests of men to
enslave their fellowmen.
Tyranny and oppression have been
the rungs of a ladder up which mankind has climbed in the
march of civilization.
It is as old as history itself. Hew
techniques for the suppression of the human spirit are but
adaptations of older o n e s . Mankind has faced the eclipse of
spiritual freedom through successive generations.
Today, the old problem in a new setting confronts us.
We are discovering that freedom is never won; that the fight
for democracy is not a battle, but a war; that the measure of
the struggle is not in years, but in centuries and eras. We
face no new struggle today, but rather a new urgency in an old
contest.
Russia fears less the military power of America than the
American philosophy of self-government by free men.
They know
that the spirit of freedom eventually will undermine and
destroy the authoritarian state wherever it e xists.
This country faces an immediate practical necessity. We
must rearm ourselves spiritually in the armor of a supreme
devotion to democracy as the most precious possession of the
human r a c e . It is in this rearmament that dangers to America
are the greatest.
- 6 r’
We are the custodian of a democracy through inheritance
from ancestors who achieved the freedoms which we enjoy.
As sons of a rich father, our principal contribution to our
present good fortune is the accident of birth. We 'accept our
freedoms as casually as the air y c breathe. We are reapihg
where we have not sown. Like spoiled children, we complain
of the imperfections of democratic government and belittle
democratic methods. At times we'have even questioned "What
Price Democracy?"
It is time for critical self-examination.
Are freedom
and liberty but empty words of an old tradition? Are human
rights under democracy n o •longer worth living for?
Is freedom
of opportunity to worship, to speak, to achieve, not a bequest
to future generations worth dying for? These questions America
must answer out of its heart and soul. And on the answer
hangs the future, of man for a thousand y e a r s .
America must rediscover its faith in democracy.
It must
match the zeal of free men for their freedom against the
fanaticism of slaves of dictators. The democratic process
itself demands public education and a rebuilding of the fires
in the hearts of the multitude for the defense of democracy.
In that task, the prime responsibility is with the think=
ing leadership of this Nation, the sc-callcd middle classes —
that is, yourselves.
If we lose our democracy in America with the inevitable
wiping out of the middle class, the cause will be nothing
more than the suicide of that class* This country stands
first in the world in the proportion of the educated, of the
middle level of economic achievement, of men and women who
have risen above the mass in accomplishment.
It has the
greatest reservoir of leadership of any nation in the world.
As^a democracy, it possesses the most productive and the most
stimulating social and economic order of any nation of any
t i m e . Its natural resources and its geography provide a base
for the highest degree of social 'and economic well-being of any
pe o p l e , Its people are imbued with the consciousness of the
power and dignity and rights of the individual as are no other
people. All of the forces, material and spiritual, are ours
for whatever national life we choose to m a k e . Every factor
of success is present.
The one factor of failure that threatens
us is in the failure of virtuous leadership.
Mere leadership is not enough. Without virtue, leadership
in a democracy digs its own grave. Business leadership that
springs from greed and selfishness, and neglects the employee,
the consumer and the public, forges the chains of its own
enslavement. Educational leadership Which shuts out the light
- 7 of truth, no matter what it reveals, and denies freedom of
the mind, wrecks its own temple. Labor leadership that is
seized with the lust for power and sacrifices the. common good
on the altar of class advantage, betrays the cause it professes
to s erve. Political leadership that uses office to fatten its
power and multiply personal gains at the expense of public
welfare, erects a treacherous structure that will not stand.
Religious leadership that refrains from a vigorous interpre
tation of the social responsibility of man, reveals decadence
and loss of virtue..
In time of national peril, leadership without virtue
betrays every cause that it professes to serve; without courage
and energy, it deserts the mission with which it is charged.
Our forefathers, authors of liberty, plead today with
the free men of America, to reassert their liberties and give
to this Nation the virtuous and vigorous leadership that is
the only guarantee' of its preservation.
Throughout the world- the grasping hand of the state is
throttling the body and spirit of free men.
Even in America
it has been f e l t . We close our eyes to reality if we fail
to recognize that in our own country the threat of the loss
of individual freedom looms before us.
Is the sanctity of
the .free spirit of the individual m a n to be destroyed as the
price for the preservation of human society?
The armament of dictators says "Yes," but the eternal
spirit of free men Says "No."
But this "No" cannot be a mere negation.
rich in its overtones of affirmation.'
It must be
Democracy is a positive and not a negative thing. We
cannot expect it to seize the heart of all peoples -- to be
the song which all mankind will sing -- if it merely substi
tutes for the tyranny of the state, the tyranny of man over
man.
Our adversaries are not slow in making this charge.
It
should be our privilege to refute them.
As college graduates, you are members of a privileged
class.
Only about five percent of all adults in South Carolina
have .four or more years of college education. With this privi
lege goes a vast responsibility of virtuous leadership. Y o u
must accept this responsibility in trusteeship for all mankind,
for civilization itself, and for preserving "the last best
hope of man" on earth.
q Oo
of taxation the amount of discount at which Treasury bills are originallv 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 il£ of the Reve
nue Act of 19Ul, 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, whefher 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, prescribe
the terms of the Treasury bills and govern the conditions of their issue.
of the circular may be obtained from any Federal Reserve Bank or Branch.
Copies
xmm.
-
2
-
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 yvd.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, non-competitive tenders for $200,000 or
less without stated price from ary one bidder will be accepted in full at the
average price (in three decimals) of accepted competitive bids.
Sett3.ement for
accepted tenders in accordance with the bids must be made or completed at the
Federal Reserve Bank on
June 10» 19U8
, in cash or other immediately avail-
able funds or in a like face amount of Treasury bills maturing
Cash and exchange tenders will receive equal treatment.
June 10. 19k8
Cash adjustments will be
made for differences between the par value of maturing bills accepted in exchange
and the issue price of the new bills.
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 the Internal Revenue Code, or laws amendatory or supplemen
tary thereto.
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
I
-CL
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Friday* June U, 19U8.
The Secretary of the Treasury, by this public notice, invites tenders for
$ 1,100,000a000
> or
thereabouts, of
91
-day Treasury bills, for cash and
to be issued on
June 10, 19k8
------------a discount basis under competitive and non-competitive bidding as hereinafter
in exchange for Treasury bills maturing
provided.
will mature
interest.
The bills of this series will be dated
September 9, 19k8
7
Xt
W c
and
June 10. 19U8
> when the face amount”will b e payable without
They will be issued in bearer form only, and in denominations of
Tenders will be received at Federal Reserve Banks and Branches up to the
daylight saving
closing hour, two oTclock p.m,, Eastern/Stanctenjcfc time, Monday, June 7, 19U8
Tenders will not be received at the Treasury Department, Washington.
Each
tender must be for an even multiple of $ 1 ,000 , and in the case of competitive
tenders the price offered must be expressed on the basis of 1 0 0 , 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 vail be supplied by Federal Reserve Banks or Branches on application
therefor.
Tenders will be received without deposit from incorporated bank's 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
TREASURY DEPARTMENT
Information Service
RELEASE, MORNING NEWSPAPERS,
Friday, June 4, 1948.
WASHINGTON, D .C .
No. S-754
The Secretary of the Treasury, by this public noticej
invites tenders for $1,100,000,000, or thereabouts, of 91 -day
Treasury bills, for cash and in exchange for Treasury bills
maturing June 10, 19^ 8 , to be issued on a discount basis under
competitive and non-competitive bidding as hereinafter provided
The bills .of this series will be dated June. 10, 19^8, and will
mature September'9, 19^8, when the face amount will be payable
without interest. They, will be issued in bearer form only,
and in denominations of $1,000, $5,000, $10,000, $100,000,
$500,000, and $1,000,000 (maturity value;.
Tenders will be received at Federal Reserve Banks and
Branches up to the closing hour, two o'clock p.m., Eastern
daylight saving time, Monday, June 7, 19^8.
Tenders will not
be received at the Treasury Department, Washington.
Each
tenders must be for an even multiple of $1,000, end in the. case
of competitive.tenders the price offered must be expressed on
the basis of 100, with not more than three decimals, e . g #, ,
99.92-5. 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 incorporated
banks and trust companies and from responsible and recognized
dealers in investment securities.
T e n d e r s 'from .¿thers 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.
Immedicutely after the closing hour, tenders wi3_l 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 f i n a l .
t^ Gse reservations, non-competitive tenders for
^¿ u q ,000 or less without stated price from any one bidder will
2
be accepted in full at the average price (in three decimals)
of accepted competitive bids.
Settlement for accepted tenders
in accordance with the bids must be made or completed at the
Federal Reserve Bank on June 10, 1948, in cash or other
immediately available funds or in a like face amount of Treasury
bills maturing June 10, 1948.
Cash and exchange tenders, will
receive equal treatment.
Cash adjustments will be made for
differences between the par value of maturing bills accepted
in exchange and the issue price of the new bills.
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 the Internal Revenue-Code, or laws
amendatory or supplementary thereto.
The bills shall be
subject t o •: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 a r e ;originally
sold by the United States shall be considered to be interest.
Under Sections 42 and 11? (a) (l) of the Internal Revenue Code,
as.amended by Section 115 of the Revenue Act.of?1941, the < ,
amount :of d i s c o u n t [ a t which bills Issued hereunder are- sold
stall 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 a
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, y
and the amount actually received either upon sale or redemption
at maturity during the taxable year for which the return is
mo.de, o„s ordinary gain or loss,
Treasury 'Deportment Circular No. 4l8, as amended, and
this notice, prescribe the terms of the Treasury b i l l s a n d
govern the conditions of their issue.' Copies of the: circular
may be obtained from ony Federal Reserve-Bank-or B r a n c h .
PRESS RELEASE
The Bureau of Customs announced today that the American Tong
Oil Association, Poplarrille, Miss., has withdrawn its complaint
of September 15, 1947, regarding the alleged dumping of wood (tung)
oil from China, and that customs appraising officers are being
instructed to proceed with their appraisement reports eoyering
such oil without regard to any question of dumping.
IMMEDIATE RELEASE,
Friday, Jüne 4, 1§48.
NO. S-.755
The Bureau of Customs announced today that the
American Tung Oil Association, Poplarville, Miss.,
has withdrawn its complaint of September 15, 19^7,
regarding the alleged dumping of wood (tung) oil from
China, and that customs appraising officers are being
instructed to proceed with their appraisement reports
covering such oil without regard to any question of
dumping.
-oOo-
* morning msPAPHts,
Tuesday, June 8, 1 9 4 8 . _____
for s s u m s
The See retary of the Treasury announced last evening that the tenders for
#1 »100,000,000, or thereabouts, of 91-day Treasury hills to be dated June 10 and to
^
ilSSBIfl®
mature September 9, 1940, which were offered June 4, 1948, were opened at the Federal
Reserve Banks on June 7.
The details of this issue are as follows:
Total applied for - ,$1,562,021,000 ^
^
Total accepted
- 1*1O4,5O7,Q00 ' {includes 145,576,000 entered on a non
competitive basis and accepted in full
s
at the average price shown below)
Average price
- 99,748 Equivalent rate of discount approx:. 0.998#' per annum
Range of accepted competitive bids:
• 99.752 Equivalent rate of discount approx. 0.981$ per annum
«
*»
n
- 99.747 ^
"
*
1.001$ *
*
High
Low
(70 percent of the amount bid for at the low price was accepted)
Federal Reserve
District
Total
Applied for
Total
Accepted
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francis»»
|
|
TOTAL
23,055,000
1,295,358,000
26,752,000
21,798,000
1,985,000
4,170,000
58,669,000
10,514,000
7,815,000
11,391,000
7,717,000
92.797,000
#1,562,021,000
21,705,000
884,315,000
19,512,000
18,764,000
1,985,000
3,570,000
49,054,000
8,924,000
7,365,000
11,181,000
7,557,000
70,597^000
#1,104,507,000
TREASURY DEPARTMENT
WASHINGTON, D .C
Information Service
REEEASE MORNING NEWSPAPERS
Tuesdayj June 8 , 1948.
No. S-756
The Secretary of the Treasury announced last evening that
the tenders for $1,100,000,000, or thereabouts, of 91-day Treasury
bills to be dated June 10 and to mature September 9 , 1948, which
were offered June 4, 1948, were opened at the Federal Reserve
Banks on June 7 .
The details of this issue are as follows;
Total applied for - $1,562,021,000
Total accepted
1,104,507,000 (includ.es $45,57^,000 entered
on a non-competitive basis and accepted in
full at the average price shown below)
Average price
- 99*748 Equivalent rate of discount approx.
0 .998% per annum
Range of accepted competitive bids;
High - 99*752 Equivalent rate of discount approx. 0 .981% per annum
Low - 9 9 . 7 4 7
"
"
'?
,"
M
1.001%
"
"
(70
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
7,717,000
92.797.000
21, 705 ,000
884, 313:,000
19, 512,„000
18 ,764.,000
1 ,985 ,,000
3, 570,,000
^9, 05^,,000
8 ,924.,000
7, 365,,000
11 ,l 8 l, 000
7, 537, 000
70, 597, 000
$ 1 ,562 , 021,000
$1,104,507,000
23.055.000
1,295,358,000
.
2 6 7 5 2 .0 0 0
21 ,798,000
1 ,985,000
4.170.000
58 .669.000
10.514.000
7 .815.000
11.391.000
TOTAL
Total
Accented
-0 O 0 -
$
STATUTORY DEBT LIMITATION
AS OF MAY 31* 1948
Fiscalr Service O'
§ H .* - ~
Washington, June
1948
Section 21 of the Second Liberty Bond Act, as amended, provides that the face amount oJ
obligations issued under authority of that Act, and the face amount of obligations guarante<
as to principal and interest by the United States (except such guaranteed obligations as maj
be held by the Secretary of the Treasury), “shall not exceed in the aggregate #275,000,000,(
outstanding at any one time* For purposes of this section the current redemption value of
any obligation issued on a discount basis vhich is redeemable prior to maturity at the opti(
of the holder shall be considered as its face amount*“
The following table shows the face amount of obligations outstanding and the face amom
which can still be issued under this limitation:
Total face amount that may be outstanding at any one time
#275,000,000,000
Outstanding
Obligations issued under Second Liberty Bond Act, as amended
Interest-bearing:
Treasury bills...... ........ # 13,760,917,000
Certificates of indebtedness...*
20,064,699,000
Treasury notes*•••••*....
16*1153396,300 # 49,941,012,300
Bonds Treasury.................. 115,523, 680, 500
Savings (current redemp.value)
53,143,462,811
315,081,00Q
Depositary. ............. .*•
Armed Farces Leave......... .
567,666,850
Investment Series..••••••••••• ____ 960,175,000170,530,466,161
Special Funds Certificates of indebtedness.*
14,923,350,000
29,322,686,000
14,399,336,000
Treasury notes... *.....••••
Total interest-bearing.*............. .
Matured, interest-ceased...........
Bearing no interest:
War savings stamps.•••••••••••••
58,842,497
Excess profits tax refund bonds.
9,387,647
Special notes of the United States:
Intemat*1 Bank for Reconst,
115 ,785,000
and Development series.....
Internat ’1 Monetary Fund series_ 1.169,000.000
Total............. ........................
Guaranteed obligations (not held by Treasury):
Interest-bearing:
Debentures: F . H . A , .............
27,463,936
Demand obligations: C.C.C. .....
42,282.514
Matured, interest-ceased........
249,794,164,461
261,237,750
1.353.015.:
251,408,437*555
69,746,450
4,849,775
74,596,225
Grand total outstanding.
..... ................ .
25I,4^310?«?:7^9
Balance face amount of obligations issuable under above authority*••*«**•
23,516,966,22U
Reconcilement with Statement of the Public Debt - May 31, 1948
(Daily Statement of the United States Treasury, (June 1, 1948)
Outstanding Total gross public debt****.*.****... .
252,236,480,793
Guaranteed obligations not owned by the Treasury.*...... *•*..*.....* ____ 74?596;
Total gross public debt and guarantawLobligations.••••*••*••*••••••«•«•
252,3H,077,0
Deduct - other outstanding public debt obligations
^
*
not subject to deb^ELmitation........ .
.... 828?Q
251.483,033,780
■ '7
J.
S
STATUTORY DEBT LIMITATION
AS OF MAY 31. 1948
June 9, 194-8
Section Ü 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 o
obligations guaranteed as to principal and interest ty the United States (except
such guaranteed obligation* as may be held ty the Secretary of the Treasury), »shall
not exceed in the aggregate? $275,000,000,000 outstanding at any one time. For pur
poses 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 amount0U
The following table shows the face amount of obligations outstanding and the
face amount vhich can still be issued under this limitation:
Total face amount that may be outstanding at any one time
Outstanding
, ,
Obligations issued under Second Liberty Bond Act, as amended
Int e re st-bearing:
Treasury billSoooooooooooo
Certificates of Indebtedness
Treasury notes ooooooooo o.oe
$ 13*760,917*000
20,064-*699*000
16,115.396.30_Q
4-9,941*01 >3
Bonds —
Treasury0oo ooooooooooooo
115*523*880,500
Savings (current redemp value) 53*143,4-82,811
Depositary oooooooooooooo
315*081* 000
Armed Forces Leaveoooooo
587*866,850
Investment Seriesooooooo
960,175,000
170,530,4-86,161
Special Funds Certificates of Indebtedness 14-,923* 350,000
Treasury noteSooooooooo©
14 -,399.336,000
1
0
O
O
Ô O O O O O O O O O O O O O
Total interest—bearing0
i
o
o
o
o
o
o
o
o
oooooOOOOOOOOO
Matured, interest-ceased
29.322.686,000
249,794,184*461
261*237,750
Bearing no interest;
War savings stampsOooo©o©o
58,842,4-97
Excess profits tax refund bonds
9,387,847
Special notes of the United States:
I n t e m a t »1 Bank for Reconst ©
and Development seriesoo
115*785,000
Internat *1 Monetary Band series 1 T169.000.000
Total O O O O O O O O O O O O O O O O O O O O O O O O O O O O O 0 . 0 6 0 0 0 0 0 0 0 0 0
1.353.015.344
251,408,437,555
Guaranteed obligations (not held by Treasury) ;
Interest-bearing;
Debentures: FoH©A* oooooooo
27,463*936
Demand obligations: C 0C«C 0
42,282,514
Matured, interest—ceasedoooooooooooooooooooooo
Ç275,0 0 0 ,0 0 0 ,0 0 0
69*746>450
4,849,771
74,596,225
Grand total Outstandingooooo©oooooooo©©ooooooooooooo©oooo3©oo«ooo
Balance face amount of obligations issuable under above authority00
251./83 033.780
icnZ* qliL1oon
— 3?b .t.,_ 9 ■■■-
Reconcilement with Statement of the Public Debt r ^ y 31* 4948
(Daily Statement of the United States Treasury, (June 1, 194»)
Oko
Outstanding Total gross p u b l i c d e b t o o o o o o o o o oo o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o
Guaranteed obligations not owned by the Treasury ©0000000000000000
Total gross public debt and guaranteed obligations0 oooo0000000000
Deduct - other outstanding public debt obligations
not subiect to debt limitationooooooooooooo©©ooooooooooo©o
0
S-757
00 A
ion 7 0 Q
J * £ . ,^ q / ,225
,m 7 *oia
252 *3 1 1 *U7 /,u±tf
.
---- 8 ^*u43*gag
251,483*033*780
The Bureau of Customs announced today preliminary figures shoving
the imports for consumption of commodities within quota limitations
provided for under the General Agreement on Tariffs and Trade, from the
beginning of the quota periods to May<$, 19*48, inclusive, as follows!
a
-a
Commodity
!
•
e
Period and Quantity
-
#
♦
Unit tluports as
•of May 29,
! of
a
19US
• Quantity !
Whole milk, fresh or
sour
Calendar year
3,000,000
Gallon
3,760
Cream, fresh or sour
Calendar year
1,300,000
Gallon
535
Butter
Quota ineffective for the
period April through October
(1 )
2*4-,930,188
Pound
Pirst 6 months
QuotaPilled
12 months from 150,000,000
Sept. 15, I9U7 60,000,000
Pound
Pound
1u9.0u3.153
May 22 - Dee.31, 3,333,333
19*48
Pound
*4-9,89*1
Pish, fresh or frozen,
filleted, etc«, cod,
haddock, hake, pollock
Calendar year
cusk, and rosefish
White or Irish
potatoes!
Certified seed
Other
Walnuts
58.893.573
(l) The proviso to Item
limits the
imports for consumption at the quota
rate to 12,*465,09*4* pounds during the
first 6 months of the calendar year.
Due to a provision of the President*s proclamation No« 2769 of
January 30, 19^1* in which the entry of a specified quantity of Cuban
filler tobacco, unstemmed or stemmed (other than cigarette leaf tobacco)
and scrap tobacco affects the rate of duty on such tobacco from countries
other than Cuba, a record is maintained of imports from Cuba« $,123,130
pounds of such Cuban tobacco were imported for consumption during the
period January 1 to May 29, 19*48, inclusive.
TREASURY DEPARTMENT
Wabhiilgton
IMMEDIATE RELEASE
Wednesday, June 9« 194-8
No. S-758
The Bureau of Customs announced today preliminary figures showing
the imports for consumption of commodities- vithin quota limitations
provided for under the General Agreement on Tariffs and Trade, from the
beginning of the quota periods to May 29, 1948, inclusive, as follows:
: Unit :Imports as
Period and Quantity
:
of
:of May 29,
____ :Quantity: 1948
Commodity
Whole milk, fresh or
sour
Calendar year
3,000,000
Gallon
Cream, fresh or sour
Calendar year
1,500,000
Gallon
Butter
Quota ineffective for the
3,7 60
535
period April through October
Fish, fresh or frozen,
• filleted, etc., cod,
haddock, hake, pollock,
cusk, and rosefish
Calendar year
White or Irish
potatoes:
Certified seed
Other
Walnuts
12 months frem
Sept. 15, 1947
May 22 - Dec. 31,
1948
(1)
V-w
24,930,138
150,000,000
60,000,000
3,333,333
Pound
First 6 months
Quota Filled
Pound 149,043,153
Pound 52,893,57 3
Pound
49,894
The proviso to Item 717(b) limits the
imports for consumption at the quota
rate to 12,465,094 pounds during the
first 6 months of the, calendar year..
Due to a provision of the Presidents proclamation No. 2769 of
January 30, 1948, in which the entry of a specified quantity of Cuban filler
tobacco, unstemmed or stemmed (other than cigarette leaf tobacco) and scrap
tobacco affects the rate of duty on such tobacco from countries other than
Cuba, a record is maintained of imports from Cuba. 9,123,130 pounds of
such Cuban tobacco were imported for consumption during the period Januaiy 1
to May 29, 1948, inclusive.
TREASURY DEPARTMENT
WASHINGTON, D .C .
Information Service
Wednesday,
9,
June
TC - 6
19^8
§Ê§ Y'-Y - Y ' ; ''VV SÉ W Êm &Sê tefÉ ''--r,S- v " >
T H E
T R E A S U R Y
C A L E N D A R
Scheduled Departmental Activities
OFFICE OF THE SECRETARY
Sunday. June 13. 12:15-12:30 P.M, Sec
retary Snyder will be heard on the ”D.C.
Dateline” program of Columbia’s Broad
casting System (Station WTOP). He will
talk on the Security Loan Drive.
Cup for Superior Marksmanship to the Bu
reau of the Mint’s guard force for win
ning the pistol matches held recently by
the Treasury Enforcement agencies. Mrs.
Nellie Tayloe Ross, Director of the Mint,
will receive the cun.
Y
OFFICE OF TIE FISCAL ASSISTANT SECRETARY
Thursday. August 5. Secretary Snyder
will address the American Legion Bpys’
Forum of National Government at American
University, Washington, D. C.
Wednesday. September 22. The Secretary
will deliver a speech before the annual
meeting of the National Association of
Supervisors of State Banks, Louisville,
Kentucky.
office of the a s s i s t a n t s e c r e t a r y
Wednesday. June 9. 10 A.M. Assistant
Secretary Foley appears before the House
Committee on Banking and Currency, on
H.R, 6570, which pertains to the conver
sion of national banks into State banks.
Monday. June IA. Foley Stadium, Bloom| field, New Jersey. Edward F. Bartelt,
Fiscal Assistant Secretary, will award
flag and special citation to the fifty
large manufacturers of Bloomfield, all
of whom have installed the Payroll Sav
ings Plan.
Monday. June 28. Edward F. Bartelt will
speak at the opening session of a special
training program for fiscal officers of
the Department of Agriculture, Endicott,
New York.
COMPTROLLER OF THE CURRENCY
Friday and Saturday. June 11 and 12.
Deputy Comptroller C. B. Upham will atThursday. June 10. 12:¿5 P.M.. at Mr.
! tend a meeting of the Vermont Bankers Asoley’s staff luncheon, Assistant Sec
I sociation at Manchester, Vermont. On
retary Foley will present the Secretary’ IMonday. June 1A. he will attend a meeting
-
COMPTROLLER OF THE CURRENCY
(Continued)
of the New Hampshire Bankers Association
to be held at Bretton Woods, New Hamp
shire, from June 1 2 - 1 5 .
DIVISION OF SAVINGS BONDS
Week of June 6 . National Director Vernon
L. Clark will be at Jacksonville,/Florida
all week conducting a survey of Security
Loan activities in the Souths
Thursday« June 10, 2 P.M.. Room 4-74- Old
State Department Building, Leon J.
Markham, National Director of Sales, will
speak before a meeting of twenty-three
leading industrial editors called to
Washington by John Steelman. Subjects
’’The Vital Stake of Industry in the Sav
ings Bond Program.”
Friday. June 11. Leon J. Markham will be
in Chicago, Illinois, attending a meeting
of the Association of ?/estern Railroads
in ponnection with the reinstatement of
the Payroll Savings Plan in the western
ra ilways.
Monday. June 14. Foley Stadium, Bloom
field, New Jersey. Leon J. Markham will
speak to the fifty large manufacturers
pf Bloomfield, all of whom have installed
the' Payroll Savings Plan.
UNITED STATES COAST GUARD
Monday and Tuesday. June 14 and 15. Lt.
Commander A. W. Wuerker, representing
the Search and Rescue Agency, USCG, will
2
-
lead discussions by the Survival Panel at
a conference of the Aero Medical Asso
ciation at Toronto, Canada.
Thursday. June 17. Admiral Joseph' F.
Farley, Commapdant of the Coast Guard,
returns on the liner AMERICA from a six
weeks stay in London where he attended
the International Conference on Safety of
Life at Sea. Admiral Farley headed the
U. S. delegation to the conference.
Friday. June 18. Lt. R. C. Gould, USCG,
will deliver a lecture on Search and
Rescue Developments before the Volunteer
and Organized Reserve, AGI officers,
Naval Intelligence School, Anacostia, D.C
BUREAU OF INTERNAL REVENUE
Friday. June 11. Ralph C. Staebner,
Chief of the Public Utilities Section of
the Engineering and Valuation Division,
Internal Revenue, will address the Ac
counting Division of the Pennsylvania
Motor Trucking Association at the PennHarris Hotel, Harrisburg, Pennsylvania.
An article by Norman A. Sugarman of
the Bureau of Internal Revenue, on
^’Estate and Gift Tax Equalization the Marital Deduction”, will appear
in the June issue of the CaliforniaLaw Review.
The Treasury Exhibit Room (2428), con
taining exhibits of the various
Treasury bureaus, is now open to the
public. This room may be visited
9:30 to 2 P.M,, Monday through Friday.
NOTE: Items for the Treasury Calendar may be phoned to the Information Service
over extensions 2041, 2042, 2043; Internal Revenue extensions 650; 651; Coast
Guard. Treasury extension 2993*
— — -r—
3 * IMMEDIATE RELEASE,
June
19lt8__________
The Bureau of Customs^ announced today preliminary figures showing the
quanti ti es o f wheat and wheat flour entered, or withdrawn from warehouse, for
consumption under the import quotas established in the PresidentTs proclamation
of May 28, 1941, as modified by the President1s proclamations of April 13, 1942,
and April 29, 1943, for the 12 months commencing May 29, 1947, as follows;
Wheat
Country
of
Origin
Established
Quota
(Bushels)
Canada
China
Hungary
Hong Kong
Japan
'Jnited Kingdom
Australia
Grermany
Syria
Hew Zealand
iaiii
ietherlands
Argentina
Italy
hiba
hance
5-reece ~
!exico
’nnama
ruguay
bland and Danzig
Sweden
'ugoslavia
‘opway
Janary Islands
iumania
ruat emala
Brazil
Jnion of Soviet
Socialist Republics
Belgium
crushed or cracked
wheat, and similar
wheat -products
Imports
Established :
:
Import's
Quota
;May 29, 194 7.. to
: May 29, 194.7.
• tol&y 2 8 ;
:Mav 28. 19ii8, incl
(Bushels)
(Pounds)
(Pounds)
795,000
- .
A
?■ — •
—
100
100
100
—
100
2 ,0 0 0
100
—
1 ,0 0 0
—
100
-
708
~
-
I II
--
-
3,815,000
24,000
13,000
13,000
8,000
75,000
1 ,0 0 0
, 5,000'
5,000
1 ,0 0 0
1 ,0 0 0
1 ,0 0 0
14,000
2,0 0 0
12 ,0 0 0
1 ,0 0 0
1 ,0 0 0
1 ,0 0 0
1 ,0 0 0
1,000
1,000
1,000
1,000
1,000
1,000
1,000
100
100
100
100
800,000
4,000,000
6,14.80
■~ ■' '
1 ,6 0 0
$% .v - .
1Illflih .H H 1
•1
Hi: i
‘
'• ' ..~fig
-
TREASURY DEPARTMENT
Washington
IMMEDIATE R S M S E
Wednesday. June 9« 1948
No© S-759
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 Hay 28, 1941, as modified by the Presidents proclamations of April 13, 1942,
and April 29, 194-3, for the 12 months commencing May 29, 194-7, as follows:
Wheat
Country
of
Origin
Established
Quota
(Bushels)
Canada
795,000
China
—
Hungary
T*
Hong Kong
Japan
•
United Kingdom
100
.
Australia
Germany
100
Syria
100
Nevi Zealand
''gif
Chile
Netherlands
100
Argentina
2 ,0 0 0
Italy
100
++
Cuba
France
1 ,0 0 0
mm
Greece
Mexico
100
’ <4
Panama
m.
Uruguay
Poland and Danzig
Sweden
Yugoslavia
Norway '
Canary Islands
Rumania
1 ,0 0 0
Guatemala
100
Brazil
100
Union of Soviet
Socialist Republics
100
Belgium
100
800,000
:
Imports
: May 29, 1947 to
: May 28,1948.Inc!o
(Bushels)
708
-*
Wheat flour, semolina,
crushed or cracked
wheat, and similar
wheat products
Established :
Imports
Quota
: May 29,.1947 to
: May 28.1948.incl,
(Pounds)
(Pounds)
3,815,000
24,000
13,000
—
. «
mm
—
w
—
—
•*
mm
mm
mm
. mm
mm
.
1 3 ,0 0 0
8 ,0 0 0
7 5 ,0 0 0
1 ,0 0 0
5 ,0 0 0
5 ,0 0 0
1 ,0 0 0
1 ,0 0 0
1 ,0 0 0
1 4 ,0 0 0
2 ,0 0 0
1 2 ,0 0 0
1 ,0 0 0
1 ,0 0 0
1 ,0 0 0
1 ,0 0 0
1 ,0 0 0
1 ,0 0 0
1 ,0 0 0
1 ,0 0 0
1 ,0 0 0
1 ,0 0 0
mP
mm
mm
oOo
**
mm
m. ■.
pm ■
mm
mm
mm
mm
mm
mm
mm
mm
mm
mm
p*
Pm
mm
pm
pm
p+
mm
mm
**
—
708
1 ,484,772
6 ,4 8 0
—
1 ,6 0 0
4 ,0 0 0 ,0 0 0
1,492,852
'*
-
7
COTTON WASTES
(In pounds)
COTTON CARD STRIPS made from cotton 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; Provided, howrver, that
not more than 33-1/3 percent of thequotas shall he 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;
• Established * Total imports iSstablishedi
Imports
Country of Origin : TOTAL QUOTA * Sept. 20, 1947,j 33-1/3$ of¡Sept. 20, 1947,
I to May 29, 19l{.éjTotal Qftotajto May 29*
2j
1940 j
4,323,457
1,441,152
United Kingdom....
19,703
19,703
133,655
239,690
Canada............
75,807
227,420 j
France............
69,627
British India......
69,627
22,747 1
68,240
Netherlands^.......
i
14,796 i
44,388
Switzerland.......
.|
i
12,853
38,559
Belgium...........
341,535
Japan..... .
'I
17,322
China.............
8,135
Egypt..... ........
•
1
6,544
Cuba............ ..
1
25,443
Germany...........
76,329
7,088
21,263
i
Italy.............
•
-
j
Totals
5,482,509
222,985
1J Included in total imports, column 2.
-oOo-
1,599,886
19,703
j
A t
IM M E D IATE RELEASE
June
0, 191*8
?
«* _
-1 -
v
/ £, £)
T h e B u r e a u o f C u s to m s a n n o u n c e d t o d a y t h a t p r e l i m i n a r y d a t a o n i m p o r t s o f
c o t t o n a n d c o t t o n w a s t e c h a r g e a b le t o t h e q u o t a s e s t a b l i s h e d b y t h e P r e s i d e n t ’ s
p r o c l a m a t i o n o f S e p te m b e r
a m e n d e d , f o r t h e p e r i o d S e p te m b e r 2 0 ,
I
94.7 ,
't o M ay
29
1 9 4 8 ^ a re
a se f o l l o w s :
COTTON ( o t h e r t h a n l i n t e r s )
( in pounds)
Country of
Origin
Under 1-! ./8” other
than roug;h or harsh
undei 3/4"
Established Imports Sept.
Quota
20, 1947, to
May 29, 191*8
Egypt and the
Anglo-Egyptian
Sudan...........
783,816
Peru..........;..
•247,952
British India.... 2,003,483
China.'... •.«... •: 1; 370; 791
Mexico..........
C'883,259>
Brazil...........
618,723
Union of Soviet
Socialist Republies...... ......
475,124
5?203
Argentina.......
Haiti..::;;.;;;::
2 37
Ecuador..........
9>333
Honduras.........
752
Paraguay...::...:
871
Colombia.........
124
Iraq.............
195
British East
Africa....... V. *.
2,240
N et herland s *East'
Indies....:.11...
71,388
Barbados.........
Other British
West Indies l/...
21^321
Nigeria..... .
5,377
Other British
West Africa 2/...
16,004
Other French
Africa 3/» <•«••••
689
Algeria and Tunisia
-
14,516,882
1
2
3
4
5
21*7,9#
1 9 ,8 #
1-1/8” or more
but less than
1-11/16” 4/
Imports Sept.
20, 1947, to
May 29. 19^8
harsh or rough 5/
Imports Sept. 20,
1947, to May 29,
191*8
1*3,571* ,1*7?
1,903,999
-
-
39,710,666
-
-
-
8,883,259
618,723
-
-
1*75,121*
177,91+9
10,2l;U,910
1*5,656,1*20
/ O t h e r t h a n B a r b a d o s , B e rm u d a , J a m a ic a , T r i n i d a d ,
O t h e r t h a n G o ld C o a s t a n d N i g e r i a .
/ O th e r th a n A l g e r i a , T u n is ia , and M a d a g a s c a r.
/ E s t a b l i s h e d Q u o ta - 4 - 5 ,6 5 6 * 4 2 0 .
/ E s t a b l i s h e d Q u o ta - 7 0 , 0 0 0 , 0 0 0 .
/
1 Less than 3/4”
and T obago.
39,710,666
TREASURY DEPARTMENT
Washington
IMMEDIATE RELEASE ,
Wednesday. June 9. 1948
No* S-760
The Bureau of Customs announced today that preliminary data on imports of
cotton and cotton waste chargeable to the quotas established ty the President*s
proclamation of September 5, 1939, as amended, for the period September 20, 194-7,
to May 29, 1948, inclusive are as follows:
COTTON (other than linters)
(In pounds)
Country of
Origin
:
Under l~l/8 u other
:
than rough or harsh
:
under 3 /4 ”
:Established:Imports Sept *
:
Quota
:20, 1947 to
:
:May 29. 1948
Egypt and the
Anglo-Egyptian
Sudan o o o o o o o o o o o ©
PerUooooooooooooo
British India«©00
China © o o o o o o o o © o ©
Mexic Oooooooooooo
Brazilooooooooooo
Union of Soviet
Socialist Repub-*
jl-l/S” or more
shut less than
Slr-ll/lÓ” 4/
:Imports Septo
:20, 1947 to
:May 29. 1948
783,8X6
247,952
2,003,483
1,370,791
8,883,259
6X8,723
mm
247,952
X9,852
pm
8,883,259
618,723
4 3 ,5 7 4 ,4 7 2
1,903,999
475,124
5,203
237
9,333
752
871
475,124
177,949
llCS oooo oo o © ooo o©
Argentina©oo o oo o ©
HaitiO O O O O O O O O O O O
Ecuador ©oo oo©o©o*
Honduras ooooooooo
Paraguay ooooo©©*©
Columbia«oooooooo
Iraq© o o o o o o o o o o o o
British East
Af r i c a * o o o o o o o o o o
Netherlands East
Indies ooooooooooo
Barbados ooooooooo
Other British
West Indies l/oo*
Nigeria ooooooooo©
Other British
West Africa 2/
Other French
Africa 3/
Algeria and Tunisia
t Less
than 3 / 4 n
:harsh or rough 5/
•
slmports Septo 20,
:1947, to May 29,
:1948
-
39,7X0,666
—
-**
—
-
—
«
-
4*;
124
195
2 ,2 4 0
71,388
-
2 1 ,3 2 1
5,377
16,004
689
—
14,516,882
10,244,910
4 5 ,6 5 6 ,4 2 0
1/ Other than Barbados, Bermuda, Jamaica, Trinidad, and Tobagoo
2/ Other than Gold Coast and Nigeria.,,
3/ Other than Algeria, Tunisia, and Madagascar«,
U Established Quota r* 45^656^420©
5/ Established Quota - 70,000,000*
39,7X0,666
2
-
-
COTTON WASTES
(In pounds)
COTTON CARD STRIPS made from cotton 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: 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:
4
sEstablished:
Imports
•'Established : Total imports
Country of Origin : TOTAL QUOTA : Sept© 20, 1947 : 33-1/3$ of: Sept© 20, 1947,
*
#
; to May 29,1948 :Total Quota: to May 29,1948 1/
United Kingdom0ooo©
Canada oqoqooooooooo
France ©oooooooooooo
British Indiaoooooo
Nst iiGirisncisoooooooo
Switzerland oooooooo
Belgium©00900009001
(Japan© 0000090000000
China oioooooooooooo
oooooooooooooo
Cuba© oooooooooooooo
Ge rmany ©ooooooooooo
Italy oooooooooooooo
Totals
1/
4,323,457
239,690
227,420
69,627
68 ,24.0
44,383
38,559
341,535
17,322
8,135
6,54-4
19,703
1 3 3 ,6 5 5
1 ,4 41,152
— .
75,807
—
69,627
2 2 ,74 7
14,796
12,853
«
—
76 ,3 2 9
25,44 3
21,263
7,088
5,482,509
19 ,7 0 3
222,985
Included in total imports, column 2 0
oOo
1 ,599,886
19 ,7 0 3
T h e B u r e a u o f C u s to m s a n n o u n c e d t o d a y p r e l i m i n a r y f i g u r e s s h o w in g
t h e i m p o r t s f o r c o n s u m p t io n o f c o m m o d it ie s o n w h ic h q u o t a s w e r e
p r e s c r i b e d b y t h e P h i l i p p i n e T r a d e A c t o f 1 9 U 8 } f r o m J a n u a r y 1 , 19U8,
to
M a y 29, 191*8, i n c l u s i v e ,
Products of
:
Philippine Islands:
as fo llo w s :
Established Quota
Quantity
850,000
Buttons
:
:
Unit of
Quantity
:
:
Imports as of
M a y 29j 19U8
Gross
110,825
523,765
Cigars
200,000,000
Number
Coconut Oil
¡4 *6 ,0 0 0 ,0 0 0
Pound
39,586,792
Cordage
6 ,00 0 ,0 0 0
tt
970,730
Rice
1,01*0,000
n
—
Sugars, refined ) l,90l*,000,000
unrefined)
6 ,50 0 ,0 0 0
Tobacco
/
(
f
f
it
157,172,201
H
203,28 U
TREASURY DEPARTMENT
.Washington
M E D I A T E RELEASE '
Wednesday» Juno 9, 1948
No. S-761
The Bureau of Customs announced today preliminary figures showing
the imports for consumption of commodities oh which quotas were
prescribed by the Philippine Trade Act of 1946, from January 1, 1943,
to May 29, 1948, inclusive, as follows:
Products of
Philippine Islands
Buttons
Established Quota
Quantity
850,000
Unit., of :
Quantity :
Imports as of
May 29, 1948
Gross
110,825
523,765
Cigars
200,000,000
Number
Coconut Oil
448,000,000
Pound
39,586,792
Cordage
6,000,000
»t
970,730
Rice
l, 040 ,0 0 0
it
-
1 ,904 ,000,000
1;
Sugars, refined )
unrefined)
Tobacco
157,172,201
6 ,50 0,000
n
203,284
TREASURY DEPARTMENT
Information Service
Wa s h in g t o n , d .c .
RELEASE, MORNING NEWSPAPERS
Thursday. June 10. 1948
S-762
Secretary Snyder today congratulated Bloomfield, New Jersey, for
being the first community in the nation since the end of the war to
achieve 100 percent industrial cooperation in the Payroll Savings Plan
for buying United States Savings Bonds,
Fiscal Assistant Edward F. Bartelt, will participate in ceremonies
June 14, Flag Day, in Bloomfield when the achievement will be heralded
by a community celebration.
All 50 companies in the town, with combined employment of 30,000
workers, have installed the Payroll Savings Plan during the Security
Loan campaign led by Mayor William Huck, Jr., and E. E* Hallander,
president of the Bloomfield Manufacturers’ Club*
oOo
simplify language and minimise the number of questions*
Collector’s offices m ill continue to compute the tax for these
taxpayers* Employers w ill continue to issue Withholding
Statements to their employees as oertifioations of the wages
and income tax withholding of the employees, but these state
ments w ill serve merely as receipts, and not as potential income
tax blanks*
In the case of both the new Form 10401 and the present Form
1040, employees w ill be required to attach their Withholding
Statements in support of the wages and withholding shown on their
This new procedure should improve income tax filin g for «11
4~h* -tancp&i&j
eancaKS*# and give important assistance to the Bureau of
Internal Revenue in its gigantic task of auditing returns and
expediting refunds.
Proposed Stated
Form If
TaxpAyers\will bw
ropes*
iterested to know that we are preparing
to-oonsuffiaate plans for lo w in g the slm plifiei Snpome tax form
for mage-earners.
it present the reverse side of the Withholding Statement
(Form W-2) which an employee receives from his employer may be
used as his income tax return. This has the advantage of being
handy, but it has numerous disadvantages for both the taxpayer
and the government. The space is too small for use by the
taxpayer as well as for printing adequate instructions. A major
difficulty resulted from the fact that m illions of taxpayers
work for more than one employer during the year, and the
duplication of tax forms on their separate Withholding Statements
has caused considerable confusion.
It was hoped that these difficulties would be overcome as
taxpayers became more accustomed to the form, but four years9
experience has pr oved that the use of Form W-2 as a tax return
has caused much confusion.
The plan
ontemplates the issuance of a
new form to be called Form 1Q40-A, which w ill retain a ll of the
important simplification features of the Withholding Statement,
but should overcome its defects.
Every effort w ill be made to
i
S -
Secretary Snyder announced today that the Treasury
Department is preparing plans for improving the simplified
form
income tax/for wage earners.
treasury
departm ent
WASHINGTON, D .C
Information Service
IMMEDIATE RELEASE,
Wednesday, June 9 ,
K 0 . S -763
19^ 8 .
Secretary^ Snyder announced today that the Treasury Depart
ment is preparing plans for improving the simplified income tax
form for wage earners.
At present the reverse side of the Withholding Statement
(Form W - 2 ) which an employee receives from his employer may fee
used as his income tax return.
This has the advantage of be
ing handy, but it has numerous disadvantages for both the tax
payer ,and the government.
The space is too small for use by
the taxpayer as well as for printing adequate instructions . -A
major difficulty resulted from the fact that millions of tax
payers work for more than one employer during the year, and the
duplication of tax forms on their separate Withholding State
ments has caused considerable confusion.
It was hoped that these difficulties would be overcome as
taxpayers became more accustomed to the form, but four y e a r s r
experience has proved that the use of Form W-2 as a tax return
has caused much confusion.
The plan contemplates the issuance of a new form to be
called Form lO^fO-A, which will retain all of the important
simplification features of the Withholding Statement, but should
overcome its defects. Every effort will be made to simplify
language and minimize the number of questions.
Collector's ofiices will continue to compute the tax for these taxpayers.
Employers will continue to issue Withholding Statements to their
Cs ce:r>tlf Ications of the wages and income tax withoiaing of the employees, but these statements will serve merely
C4
.s receipts, and not »as potential Income tax blanks.
t?
case of both the new Form 10^-G-A and the present
emP loy ees will be required to attach their Withholdtat 2ments in support. of the wages and withholding shown on
eneir returns.
This new procedure should improve Income tax filing for the
and give important assistance to the Bureau of In- '
P v ^ L ? evenue ln its S i g ^ t l c task of auditing returns and
expediting refunds. ‘
'
v•
taxpayers,
-cOo-
t\ O . V sasAsuaT wrjjavwt
Washington, B . 0
Information Service
JM F iietSESASS mura am i .
W a. * -
7G
Y'ivO-l
Secret&ry of thè fre&aury Snyder today annotine®d that iastitutional
lave«top« of thè classe* àefined la Department Circuì*r So. 81*4, dated
Septem'ber 22, 19*47, vili be perniiied to purchase United State« Savia#*
Sonde of Serie« f and Serie* $ darla# thè perlod froa July 1 throu^i
July 15, 19*48, inclusive, la aso unte in esce** of exlsting limitai iena.
thè Secretar/ etated that thl* offerì»# 1* la line vith hi* statement
of Ssptsaber 5, 19*47# whe» he announced thè offering of thè 2-1/2 per cent
ireasuiy Sonde, Investment Serie* &-19é§, vhen he eald that «iUrther
offe ring* of »«curiiio* eultahle p rimar ily for in»t iteti osai investment
needs would he made available vhenever thè situatioa serrante such action.H
fhe special offering of Serie* f and 8 honde vili he open to instituttonai investore holding s&vings, Insurance, and penslon funds, ehieh
vere eligible to purché«# thè 2-1/2 percent freasuiy Honda, Investment
Serie* ¿»19&5* under Department 01 realar Ho. Slb, dated September 22,
19 ^7 , subisci to thè follovis# limitatlon*:
(a)
Such investor In the i&loving categorise vili he
permitted to purchase Series ¥ and 8 Savin#* Bond*
combined up to a total amount of $1,000,000 (issue
prise) for the calendar year 19*48, provided that
any bond« In excess of the existing limit of $100,000
M is t be purchased during the period from July 1 through
#*ly 15. 19^1
1.
2.
3*
b.
5*
b.
7«
(b)
Insurance companies.
Saving* beak*.
Savings and loan association*^ and building
and lean associations, and cooperative beaks,
Pension and retlremsnt funds, including those
of the federal, State» and local government*.
fraternal benefit associations,
.Endowment funds.
Credit unions.
Hash commercial end industrial bank ho
or issuing time certificates of deposit in the names of
individuals, and of corporations, associations, and other
organisations not operated for profit, vili be permitted
to purchase f and 0 Savings Bonds combined up to $100,000
(Issue pries) from July 1 to July X% 19*48, inclusive.
further details with respect to this special offering vili be announced
TREASURY DEPARTM ENT
Information
Service
WASHINGTON, D .C .
No. S-764
IMMEDIATE RELEASE,
Thursday, June 10, 1948.
Secretary of the Treasury Snyder today announced that institutional in
vestors of the classes defined in Department Circular No, 814, dated
September 22, 1947, will be permitted to purchase United States Savings Bonds
of Series F and Series G during the period from July 1 through July 15, 1948,
inclusive, in amounts in excess of existing limitations.
The Secretary stated that this offering is in line with his statement
of September 5, 1947, when he announced the offering of the 2-1/2 percent
Treasury Bonds, Investment Series A-19&5, when he said that ^further offer
ings of securities suitable primarily for institutional investment needs
would be made available whenever the situation warrants such action.n
The special offering of Series F and G bonds will be open to institu
tional investors holding savings, insurance, and pension funds, which were
eligible to purchase the 2-1/2 percent Treasury Bonds, Investment Series
A-I96 5 , under Department Circular No, 814, dated September 22, 1947, subject
to the following limitations:
(a)
Each investor in the following categories will be permitted
to purchase Series F and G Savings Bonds combined up to a
total amount of $1,000,000 (issue price) for the calendar
year 1948, provided that^any bonds in excess of the exist
ing limit of $100,000 must be purchased during the'period
from July 1 through July 15, 1948:
1.
2*
3.
4«
5.
6.
7.
(b)
Insurance companies
Savings banks
Savings and loan associations and building and
loan associations, and cooperative banks
Pension and retirement funds, including those
of the Federal, State and local governments
Fraternal benefit associations
Endowment funds
Credit unions
Each commercial and industrial bank holding savings deposits
or issuing time certificates of deposit in the names of in
dividuals, and of corporations, associations,' and other or
ganizations not operated for profit, will be permitted to
purchase F and G Savings Bonds combined up to $100,000
(issue price) from July 1 to July 15, 1948, inclusive.
Further details with respect to this special offering will be announced
later.
-0 O 0 -
rjizsrrvr m r v y t a M E
^ - 7^ Î
Immediate
a
i o , 19 w
Secretary Snyder today issued the following statement:
It was with the deepest sorrow that I learn
ed this morning -of the sudden death of Lewis
Sehwellenbach*
As a result of our years of work together
in Washington I came to have great admiration and
respect for his intellectual vigor and capacity.
m
his untiring effort^and his deep sense of duty to
his community, his state, and his country«
His life was a full and truly distinguished
one. Those of us who were privileged to know him
well will always remember him as the great citizen
and patriot that he was» He served his country well»
treasury
Information
departm ent
Service
No. S-
IMMEDIATE RELEASE,
Thursday, June 10, 19^8.
Secretary Snyder today issued the following stat
ment :
It was with.the deepest sorrow that I
learned this morning of the sudden death of
Lewis Schwellenbach.
As a result of our years of work to
gether in Washington I came to have greatadmiration and respect for his intellectual
vigor and capacity, his untiring effort,
and his deep sense of duty to his community,
his state, and his country.
His life was a full and truly distin
guished one.
Those of us who were priv
ileged to know him well will always remember
him as the great citizen and patriot that he
was.
He served his country well.
-0O 0
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£ and
117 (a) (1) of the Internal Revenue Code, as amended by Section ll£ of the Reve
nue Act of 19lfL, 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 No, Ul8, as amended, and this notice, prescribe
the terms of the Treasury bills and govern the conditions of their issue.
of the circular may be obtained from ary Federal Reserve Bank or Branch.
Copies
- 2 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 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, non-competitive tenders for $200,000 or
less without stated price from any one bidder will be accepted in full at the
average price (in three decimals) of accepted competitive bids.
Settlement for
accepted tenders in accordance with the bids must be made or completed at the
Federal Reserve Bank on
June
17» 19U8__
j in cash or other immediately avail-
w
able funds or in a like face amount of Treasury bills maturing
Cash and exchange tenders will receive equal treatment.
June 17« 19k8
Cash adjustments will be
made for differences between the par value of maturing bills accepted in exchange
and the issue price of the new bills.
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 the Internal Revenue Code, or laws amendatory or supplemen
tary thereto.
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
S
-% 6
XXKS&RxX
rm s t
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS »
Friday3 June 11, 19U8.
3R
The Secretary of the Treasury, by this public notice, invites tenders for
$1,100,000,000
—
w
, or thereabouts, of
—
91 -day Treasury bills, for cash and
in exchange for Treasury bills maturing
j to be issued on
.Tuna
a discount basis under competitive and non-competitive bidding as hereinafter
provided.
will mature
interest.
The bills of this series will be dated ------June 17*
19U8
, and
---------------September 16, 19U8
, when the face amount will be payable without
They will 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 will be received at Federal Reserve Banks and Branches up to the
daylight saving
closing hour, two o*clock p.m., Eastern/S8S?iiS3S2<3t time, Monday, June liu 19li8
—
’ -- ^
Tenders will not be received at the Treasury Department, Washington.
Each
tender must be for an even multiple of $1,000, and in the case of competitive
tenders the price offered must be expressed on the basis of 100, with not more
than three decimals, e. g., 99.92$.
Fractions may not be used.
It is urged
that tenders be made on the printed forms and forviarde d 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
treasury
departm ent
Information Service
RELEASE MORNING.NEWSPAPERS
Friday, June 11, 1948.
★
WASHINGTON, D .C .
No* S-766
The, Secretary of the Treasury, by this public notice, invites tenders
for $1,100,000,000, or thereabouts, of 91-day Treasury bills, for cash and
in exchange, for Treasury bills maturing June 17, 1948, to be issued on a
discount basis under competitive and non-competitive bidding as hereinafter
provided* The bills of this series will be dated June 17,; 194-8, and will
mature September 16, 194-8, 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).: .
L' ■
Tenders will be received at Federal Reservé Banks and Branches up to
the closing hour, two o'clock p.m., Eastern daylight savings timé, Monday,
June 14,, 194-8. Tenders will not be received at the Treasury Department,
Washington. Each tender must be for an even multiple of $1,000, and in
the case of competitive tenders the price offered must be expressed on the
basis of 100, with not more than three decimals, e. g*y 99.92-5* Fractions
may hot 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 per
cent 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 Fed
eral 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 reserva
tions, non-competitive tenders for $200,000 or less without stated price
from any one bidder will be accepted in full at the average price (in three
decimals) of accepted competitive bids. Settlement for accepted tenders in
accordance with the bids must be made or completed at the Federal Reserve
Bank on June 17, 194-8, in cash or other immediately available funds or in
a like face amount of Treasury bills maturing June 17, 1948. Cash and ex
change tenders will receive equal treatment. Cash adjustments will be made
for differences between the par value of maturing bills accepted in ex
change and the issue price of the new bills*
-
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 the Internal Revenue
Code, or laws amendatory or supplementary thereto. The bills shall be
subject to estate, inheritance, gift, or other excise taxes, whether Fed
eral or State, but shall be exempt from all taxation now or hereafter im
posed 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 be
tween the price paid for such bills, whether on original issue or on sub
sequent 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
prescribe the
their issue.
serve Bank or
Department Circular No, 418, as amended, and this notice,
terms of the Treasury bills and govern the conditions of
Copies of the circular may be obtained from any Federal Re
Branch,
-oOo
S-7&7
25
. Jtmt lf 19k%
Î0 m
M U M «
Th« following « ^ i transactions t w e æade doling tho »«***&
of Uiî. 19kÔ. in diroet «ad goaronteed somirliio» of the Government
for Treasury investment and other aeoountsi
S«1m *•***•***#«•»*•****#**** #39,100,000
PurobMM •*#•*#***#**♦ *#•****
8.695.500
o sa
h ni. «ton
l(Bgd.) E. 0. Baraks
Chief, » f i s i « of XnvootiBoats
-4
3
\
\
6/1/1*8 kw
^
ö
'
RELEASE, MORNING PAPERS
Tuesday, June 15, 19^8.
No. S-j6?
During the month of May, 1948, market trans
actions in direct and guaranteed securities of the
Government for Treasury investment and other accounts
resulted in net sales of $30,404,500Snyder announced today.
oOo
Secretary
SBslifpp^'SP*
■
. S 5-
FOR BMlSI, M0HH2MMJBSRAHSRS,
7
Tuesday, June 15. 1948.
The Secretary of the Treasury announced last evening that the tenders for
$1,100,000,000, or thereabouts, of 91-day Treasury hills to he dated June 17 and to maturt
September 16, 1946, which were offered June 11, 1948, were opened at the Federal Besom
Banks on June 14.
The details of this issue are as follows;
ife-i
Total applied for - #1,663,007,000
Total accepted
- 1,103,280,000 (includes #44,207,000 entered on a noncompetitive basis and accepted in full at
the average price shown below)
Average price
- 99.748 Equivalent rate of discount approx. 0.998$ per annum
Range of accepted competitive bids:
• 99.762 Equivalent rate of discount approx. 0.981$ per annum
2 99.747
*
*
*
*
»
1.001$ *
"
High
Low
(64 percent of the amount bid for at the low price was accepted)
Federal Reserve
District
Total
Applied for
Total
Accepted
Boston
New Tork
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
#
9,090,000
1,386,382,000
12,795,000
13,480,000
3,626,000
4,100,000
141,439,000
3,071,000
5,965,000
24,368,000
5,815,000
42.887,000
#
#1,608,007,000
#1,103,220,000
TOTAL
8,788,000
893,916,000
2,611*000
8,880,000
3,625*000
4,100,000
121,947,000
2,841,000
5,564,000
18,434,000
5,760,000
26,787,000
TREASURY DEPARTM ENT
WASHINGTON, D .C
Information Service
No. S -.768
RELEASE, MORNING NEWSPAPERS,
Tuesday, June 1 5 3 19^8» .
The Secretary of the Treasury announced last evening that
the tenders for $1,100,000,000, or -thereabouts, of 91-day
Treasury hills to he dated June 17 and to mature September lb,
1948, which were offered June 11, 1948, were opened at the
Federal Reserve Banks on June 14.
The details of this issue are as follows;
Total applied for -* $1,653*007*000
Total accepted.
- 1,103*220,000 (includ.es $44,207*000 entered.
on a non-competitive basis and accepted
in full at the average price shown below)
Average price - 99*748 Equivalent rate of discount approx,
per annum
0 .998$
Range of accepted competitive bid.s;
High * 99.752 Equiv. rate of discount approx. 0 .981$ per annum
Low - 99.747
>
L.001$
M
(54 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
S t . Louis
Minneapolis
Kansas City
Dallas
San Francisco
$
TOTAL
9 ,090,000
, ,
,
1 3 8 6 3 8 2 ,0 0 0
1 2 795*000
13.480.000
3 .625.000
4.100.000
141,439,000
3 * 071,000
5,955*000
24.368.000
Total
Accepted
$
8 ,75 5 ,0 0 0
893.916.000
2.611.000
8.880.000
_ 3 ,625,000
4.100.000
121.947.000
2.841.000
5.564.000
18.434.000
42 .887.000
5.760.000
26.787.000
$ 1 *653 *007,000
$ 1 ,103 ,220,000
5 * 815,000
0 O0
f
2
Following duty in the navy
— r, 1 iupntfm
S P during
the war, he joined the staff of the Chief Counsel of the
Bureau of Internal Revenue, and came to the office of the Tax
Legislative Counsel in
Secretary Snyder h
--
. _ shols, Jr.,
formerly Chief Counsel of the Bureau of Federal Supply, as
an Assistant General Counsel of the Treasury Department^ o4S&
u
V ^
^ J-
u w o
U W 11,
LIB degrees at Harvard University.
X O U C J .V O U .
U
i O
JrU D
C L I1 U .
He practiced law in Boston
for several years and entered Government service w i t h |the Lands
Division of the Department of Justice in
1938 .
From January,
1942, to January, 1944, he was an attorney with the War Produc
tion Board.
^
Following service in the Wavy, TTfrr?r'T hn -fUtmined
,14-Pnnn +-
served briefly as an
attorney in the Office of the General Counsel, Wavy Department,
and w&e transferred in December, 1946.to the Bureau of Federal
Supply where he has since served as General Counsel.
Mr. Harding, who becomes Chief Counsel of the Bureau of
Federal Supply, is a native of Port Jervis, Wew York.
He
received his law degree at Cornell University, was admitted to
the Wew York Bar in 1933 > &nd from 1937 to 1942 was Corporation
Counsel for the City of Port Jervis.
He joined the Bureau of
Federal Supply in 1942 as an attorney, later saw active duty
in the Wavy,
and returned to the Bureau in 1946.
oOo
j
“Proposed JPg?ess Release
-----
r
/
/
Secretary Snyder today announced the resignation,
effective June 30, of Adrian W. DeWind, the Treasury’s Tax
Legislative Counsel, who will resume the practice of law
in New York City.
Mr. DeWind came to the Treasury legal staff in 19^3,
became Assistant Tax Legislative Counsel in 1945, and Tax
Legislative Counsel in 194?.
He is a graduate of Grinnell
College, Iowa, and of Harvard Law School, class of 1937.
Prior to Treasury service he was a practicing lawyer in New
York, where he maintains a legal residence.
Vance L. Kirby, a native of Boston, Mass., has been
appointed
i
s
to succeed Mr. DeWind.
Mr. Kirby
is a graduate of Dartmouth College, class of 1934, and of
Harvard Law School,-class of 1937-
He joined the Treasury
legal staff in 1942, and for the past year has served as
Assistant Tax Legislative Counsel.
John J^ Bolai
the Tax Legislativ
Legislative Counsel.
ranton, Pa., at present a member of
, has been named Assistant Tax
He is a graduate of the University^oT'"^
Scranton, and received his degree in law at Georgetown Univer
sity in 1933.
He is a member of the District of Columbia
and Pennsylvania State Bar associations.
Prior to the war he
was an attorney for the Securities and Exchange Commission.
TREASURY DEPARTMENT
Information Service
IMMEDIATE RELEASE,
Wednesday, June 16, 19^8,
Wa s h i n g t o n , d .c .
Wo. S -769
Secretary Snyder today announced the resignation, ef
fective June 30, of Adrian ¥. DeWind, the Treasury’s Tax
Legislative'Counsel, who will resume the practice of law in
New York City.
Mr. DeWind came to the Treasury legal staff in 19^3*
became Assistant Tax Legislative Counsel in 1945* and Tax
Legislative Counsel in 1947. He is a graduate of Grinnell
College, Iowa, and of Harvard Law School, class of 1937.
Prior to Treasury service he was. a practicing lawyer in New
York, where he maintains a legal residence.
Vance L. Kirby, a native of Boston, Mass., has beenappointed to succeed Mr. DeWind. Mr. Kirby is a graduate of
Dartmouth College, class of 1934, and of Harvard Law School,
class of 1937. He joined the Treasury legal staff in 1942,
and for the past year has served as Assistant Tax Legislative
Counsel.
John j. Boland of Scranton, Pa., at present a member of
the Tax Legislative Counsel's staff, has been named Assistant
Tax Legislative Counsel. He is a graduate of the University
of Scranton, and received his degree in law at Georgetown
University in 1933. He is a member of the District of
Columbia and Pennsylvania State Bar associations.
Prior to
the war he was an attorney for the Securities and Exchange
Commission. Following duty in the Navy during the war, he
joined the staff of the Chief Counsel of the Bureau of Internal
Revenue, and came to the office of the Tax Legislative Counsel
in 1947.
Secretary Snyder also announced the appointment of
Philip Nichols, Jr., formerly Chief Counsel of the Bureau of
Federal Supply, as an Assistant General Counsel of the Treasury
Department.
Byron Harding will succeed Mr. Nichols as Chief
Counsel of the Bureau.
Mr. Nichols is a native of Boston, and received his AB
and LLB degrees at Harvard University. He practiced "law in •
Boston for several years and entered Government service with
2
the Lands Division of the Department of Justice in 1938.
From January, 1942, to January, 1944, he was an attorney with
the War Production Board. Following service in the Navy,
he served "briefly as an attorney in the Office of the General
Counsel, Navy Department, and transferred in December, 1946,
to the Bureau of Federal Supply where he has since served as
General Counsel.
Mr. Harding, who becomes Chief Counsel of the Bureau of
Federal Supply, is a native of Port Jervis, New York. He
received his law degree at Cornell University, was admitted to
the New York Bar in 1933^ and from 1937 to 1942 was Corpora
tion Counsel for the City of Port Jervis. He joined the
Bureau of Federal Supply in 1942 as an attorney, later saw
active duty in the Navy, and returned to the Bureau in 1946.
oOo
- 3 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 Reve
nue Act of 19U1, 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 ovmer 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, prescribe
the terms of the Treasury bills and govern the conditions of their issue.
of the circular may be obtained from any Federal Reserve Bank or Branch,
Copies
M
-
2
-
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 nis action in any such respect shall
be final.
Subject to these reservations, non-competitive tenders for $200,000 or
less without stated price from any one bidder will be accepted in full at the
average price (in three decimals) of accepted competitive bids.'
Settlement for
accepted tenders in accordance with the bids must be made or completed at the
Federal Reserve Bank on
.tMno o\t
t q IiR
, m
cash or other immediately avail—
able funds or in a like face amount of Treasury bills maturing
Cash and exchange tenders will receive equal treatment.
June 2hf lgU8
w
Cash adjustments will be
made for differences between the par value of maturing bills accepted in exchange
and the issue price of the haw bills.
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 the Internal Revenue Code, or laws amendatory or supplemen
tary thereto.
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 ary local taxing authority.
For purposes
)
TREASURY DEPARTMENT
Washington*
W tL RELEASE, MORNING M S PAPERS,
Friday, June 18, 19U8.
The Secretary of the Treasury, by this public notice, invites tenders for
$ 1 ,000 ,000,000 , or thereabouts, of
91, -day Treasury bills, for cash and
" W
"
June 2 k * 19h8
in exchange for Treasury bills maturing
'
, to be issued on
---------------------------
a discount basis under competitive and non-competitive bidding as hereinafter
provided.
.The bills of this series Will be dated
will mature
September 23, 19U8
June 2lu 19U8
, and
, 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 , $f>00 ,000 , and $ 1 ,000,000 (maturity value) .
Tenders will be received at Federal Reserve Banks and Branches up to the
daylight saving
closing hour, two o*clock p.m., Eastern^Braariapdc time,
Monday. June 21. 19U8
Tenders will not be received at the Treasury Department, Washington.
Each
tender must be for an even multiple of $1,000, and in 'the case of competitive
tenders 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
TREASURY
D E P A R T M E N T
Information Service
WASHINGTON, D .C .
%
RELEASE MORNING NEWSPAPERS,
Friday, June IS, 1943,»_____
No. S-770
The Secretary of the Treasury, by this public notice, invites tenders
for $1 ,000,000 ,000 , or thereabouts, of 91 -day 'treasury bills, for cash and
in exchange for Treasury bills maturing June 24, 1948* to be issued on
a discount basis under competitive.and non-competitive bidding as hereinafter
provided. The bills of this series will be dated June 24, 1948, and will
mature September 23, 1948, when the face amount will be payable without
interest. They will be issued in bearer .form only, and in denominations of
$1 ,000, $ 5 ,000^ $10 ,000 , $100 ,000 , $ 500 , 000, and $1 , 000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the
closing hour, two o ’clock p.m., Eastern daylight saving time, Monday,
June 21 , 1948* Tenders will not be received at the Treasury Department,
¡Washington. Each tender must be for an even multiple of $1,000, and in the
case of competitive tenders 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 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 reservations, non-competitive tenders for $200,000 or less without
stated price from any one bidder will be "accepted In full at the average
price (in three decimals) of accepted competitive bids. Settlement for
accepted tenders in accordance with the bids must be made or completed at
the Federal Reserve Bank on June 24, 1948, in cash or other immediately
available funds or in a like face amount of Treasury bills maturing
-
2
-
June 24, 1943* Cash and exchange tenders m i l receive equal treatment.
-Cash adjustments will be made for differences between the par value of
maturing bills accepted in exchange and the issue price of the new bills.
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 the Internal Revenue
Code, or laws amendatory or supplementary thereto* The^bills shall be
subject to estate, inheritance, gift or other excise taxes, whether
Federal or State, but shall be exempt from all taxation now or hereafter
imposed on the principal or interest thereof by any State, or any of the
possessions of the United States, or by any local taxing authority. For
purposes of taxation the amount of discount at which Treasury bills are
originally sold by the United States shall be considered to be interest#
Under Sections 42 and 117 (a) (l) of the Internal Revenue Code, as amendedby 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 ofj chid
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* 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-
treasury
departm ent
Information Service
WASHINGTON, D .C .
RELEASE, MORNING NEiiSPAEERS
Monday, June 21, 19U8._____
No* S-771
Secretary of the Treasury Snyder today announced the offering,
through the Federal Reserve Banks, of 1-1/8 percent Treasury Certifi
cates of Indebtedness of Series F-lRib^ open on an exchange basis, par
for par, to holders of Treasury Certificates of Indebtedness of Series
all maturing July 1, 1918.
Cash subscriptions will not be received.
The certificates now offered will be dated July 1, 1918, and will
bear interest from that date at the rate of one and one-eighth percent
per annum, payable,with the principal at maturity on July 1, 19l9.
They will be issued in bearer form only, in denominations of $1,000
$3 ,000 , $10 ,000,$ 100,000 and $ 1 ,000 ,000 .
Pursuant to the provisions, of the Public Debt Act of 19ll, as
amended, interest upon the certificates now offered shall not have any
exemption, as such, under the Internal Revenue Code, or laws amendatory
or supplementary thereto. The full provisions relating to taxability
are set forth in the official circular released today.
Subscriptions will be received at the Fed.eral Reserve Banks
Branches, and at the Treasury Department, T.ashington, and should
accompanied by a like face amount of the maturing certificates.
to the usual reservations, all subscriptions y/ill be allotted in
and
be
Subject
full.-
The subscription books will close for the receipt of all subscrip
tions at the close of business ’.ednesday, June 23.
Subscriptions addressed to a Federal Reserve Bank or Branch or to
the Treasury Department, and placed in the mail before midnight June 23,
will be considered as haying been entered before the close of the sub
scription books.
The text of the official circular follows:
UNITED STATES OF AMERICA
Due July 1, 19U9
Dated and bearing interest from July 1, -I9U8
19U8
TREASURY DEPARTMENT,
Office of the Secretary,
"Washington} June 21, 19U8
Department Circular No. 829
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 ,«f
the United States, for certificates of indebtedness of the United States, desig
nated 1-1/8 percent Treasury Certificates of Indebtedness of Series F-19U9-, in
exchange for Treasury Certificates of Indebtedness of Series F-19U8, Series
G-19U8. or Series H-19U8, all maturing July 1, 19^8.
II.
DESCRIPTION OF CERTIFICATES
1. The certificates will, be dated July 1, 19U8, and "will bear interest from
that date at the rate of 1 - 1 /8 percent per annum, payable with the principal at
maturity on July 1, 19U9. They will not be subject to call for redemption prior
to maturity.
2. The income derived from the certificates shall be subject to all taxes
now or hereafter imposed under the Internal Revenue Code, or laws amendatory of
supplementary thereto. 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 vd.ll be acceptable to secure deposits of public moneys.
They will not be acceptable in payment of taxes.
In Bearer certificates will be issued in denominations of 31,000, $5.,000 ,
.$>10,GOO, $100,000 and $1,000,000. The certificates will not be issued in regis
tered 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
-
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 Yfithout
notice; and any action he may take in these respects shall be final. Subject to
these reservations, all subscriptions will be allotted in full. Allotment notices
will be sent out promptly upon allotment.
IV.
PAYMENT
1. Payment at par for certificates allotted hereunder must be made ©n or
before July 1, 191+8, or on later allotment, and may be made only in Treasury
Certificates of Indebtedness of Series F-I 9I48, Series G-19^8 or Series H-19U8,
all maturing July 1, 19 )48, which will be accepted at par, and should accompany
the subscription. The full amount of interest due on the certificates surren
dered will be paid to the subscriber following acceptance of the certificates.
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 on the basis and
up to the amounts indicated by the Secretary of the Treasury to the Federal Re
serve 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 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.
-5
IMMEDIATE RELEASE
Monday« June 21« 19AB
/*
/
^
/*
"Mpt.nnnn ■
The Treasury Departmait announced today that "Metopon*
(Methyldihydromorphinone) hydrochloride has been released to qualified whole
sale drug dealers, hospitals, druggists and practitioners, for use in the
treatment of terminal cancer cases*
This new^dru ^developed under the auspices of the National Research
Council, was made available to physicians more than a year ago, upon
approval by the United States Public Health Service of each order*
Because of the satisfactory results obtained in the relief of pain by
the administration of ^Metopon,^Mihe Treasury reached its decision to make
the drug more readily available in the treatment of cancer.
Subject to compliance with the Federal narcotics laws and regulations,
physicians may now obtain
topon
on order from wholesale dealers, or
may make the drug available to patients by prescriptions which may be filled
by qualified d:
jtopon,
ists*
m e Treasury announcement states, should be used in the
professional treatment of terminal cancer cases only.
TREASURY
D E P A R T M E N T
IMMEDIATE RELEASE
Monday 3 June 21, 19 A3
S. - 772
CO ERECTED COPY
The Treasury Department announced today that Metopon
(Methyldihydromorphinone) hydrochloride has been released to qua?<-ified
^ | ^
r \ ^ i\ v V ^ r
t
fi’jm
Si
i. ^
-s f?
wholesale drug dealers, hospitals, druggists, and practitioners, for
use in the treatment of serious chronic pain cases*
■
'-"
_ _
The new drug, developed'under the auspices of the National Research
■
Council, was made available to physicians more than a year ago for use in
the treatment of cancer cases, each order requiring the approval of the
United States Public Health Service*
Because of the satisfactory results
obtained in these cases by the administration of Metopon, the Treasury
reached its decision to make the drug more readily available in the
relief of chronic pain cases, including cancer*
Subject to compliance with the federal narcotics laws and regulations,
physicians may now obtain Metopon on order from wholesale dealers, or may
make the drug available to patients by prescriptions which may be filled
by qualified druggists*
Metopon, the Treasury announcement states, is available for oral
administration only, and its use should be restricted to the treatment
of cases involving chronic pain*
-oOo-
kkle&se, m
m m mísmmm*
Tneeday, Jane 88. 1948,
niKniMW m iMii»» ' n g ^ F i i iw
. Ü . m iwMTfcam iwiwi mim........o» n ii,-ni «m ui ■ma n í
«
Tba Sesretaxy of tba treasury announoed laat atenlsg tbat *b» tendera for
|l,000,000t000, or thereabouta, of 91-day Traaaury bilis to bo datad t a 24 and to
aatura Septeaber
25,
1048, ahich aera offered Juna 18, 1948, «ere apañad at tba Federal
Basarte Banks on t e 81#
Tba detall» of tbls iasua ara as folio«»:
total appllad for - #1,468,058,000
total aoeopted
* 1,006,745,000 (telada» #59,817,000 enterad on a nonacopetitita basl» and aooaptad ln fuli at
tba ataruga priaa »boira bate)
Ataraga prlca
- 99*748 Equitaleat rata of diaeount approx. 0*996)1 par »«?>«*»
Ranga ef aeeepted cometítita blds:
Blgb
Los
- 79.758 Sqaltalaat rata of disoount approx. 0.981% par «««»»»
- 99.747
*
* *
»
•
1.001$ *
»
(94 peroeat of tba amount bid for at tba loa prisa «as aooaptad)
Federal Basarte
Dlatriot
total
Applied for
total
Assaptad
Boston
| 13,118,000
1,501,886,000
4,780,000
80,806,000
6,606,000
4,780,000
66,756,000
1,945,000
1,675,000
10,780,000
4,949,000
48,565,000
|
#1,448,096,000
#1,005,745,000
HewTork
FbllaAalpbla
Olstaland
Riehffiond
Atlanta
Oblongo
at. Loáis
Ml&neapolls
Raneas City
Pallas
San Franoisoo
tOtAL
18,886,000
869,009,000
5,988,000
16,606,000
5,605,000
4,664,000
45,205,000
1,765,000
1,585,000
9,880,000
4,634,000
89,765,000
RELEASE, MORNING NEWSPAPERS,
Tuesday, June 22, 19AS_____ _
S-773
The Secretary of the Treasury announced last evening that the tenders for
1)1,000,000,000, or thereabouts, of 91-day Treasury bills to be dated June 24 and
to mature September 23, 1948, which were offered June IS, 1948, were opened at
the Federal Reserve Banks on June 21,
The details of this issue are as follows:
Total applied for - $1,468,036 ,000
Total accepted
1,005,745*000 (includes $39,217,000 entered on a non
competitive basis and accepted in full
at the average price shown below)
Average price
- 99*748 Equivalent rate of discount approx« 0*998%
per annum
Range of accepted competitive bids:
-
High
Low
-
99*752 Equivalent rate of discount approx* 0*981%
per annum
99*747 Equivalent rate of discount approx* 1*0.01%
per annum
(64 percent of the amount bid for at the low prIce was accepted)
Federal Reserve
District
Total
Applied f or
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chic ago
St* Louis
Minneapolis
Kansas City
Dallas
San Francisco _
4
TOTAL
13,112,000
1,301,285,000
4,720,000
20,205,000
5,605,000
4,720,000
56,735,000
1,945,000
1,675,000
10,720,000
4 ,949,000
42,365,000
$ 1,468,036,000
0 O0
Total
Accepted
$
12,886,000
869 ,0C9 , 000
3,982,000
16,605,000
5,605,000
4 ,684,000
45 ,205,000
1,765,000
1 ,585,000
9,820,000
4 ,834-,000
29,765,000
41,005,745,000
- 3 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 11^ of the Reve
nue Act of I9I4.I, 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 No. I4.I8 , as amended, and this notice, prescribe
the terms of the Treasury bills and govern the conditions of their issue.
of the circular may be obtained from any Federal Reserve Bank or Branch.
Copies
1
mtmc
-
2
-
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 ary such respect shall
be final.
Subject to these reservations, non-competitive tenders for $200,000 or
less without stated price from ary one bidder will be accepted in full at the
average price (in three decimals) of accepted competitive bids.
Settlement for
accepted tenders in accordance with the bids must be made or completed at the
Federal Reserve Bank on
July
1. 19L8
, in cash or other immediately avail'
f
b w
able funds or in a like face amount of Treasury bills maturing
Cash and exchange tenders will receive equal treatment.
■
July 1
T9U8
Cash adjustments will be
made for differences between the par value of maturing bills accepted in exchange
and the issue price of the new bills.
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 the Internal Revenue Code, or laws amendatory or supplemen
tary thereto.
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 ary of the
possessions of the United States, or by ary local taxing authority.
For purposes
5-7 7y
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Friday, June 25, 19U8.
SS
;
The Secretary of'the Treasury, by this public notice, invites tenders for
fa.100.000.000
i or
thereabouts, of
91
in exchange for Treasury bills maturing
-day Treasury bills, for cash and
July 1. 19k8
, to be issued on
a discount basis under competitive and non-competitive bidding as hereinafter
provided.
will mature
interest.
The bills of this series will be dated
July 1. 19ii8_______ , and
September 30, 19Ì4-8 , when the face amount will be payable without
They will be issued in bearer form only, and in denominations of
$1,000, $5,000, $10,000, $1Q0,000, $500,000, and $1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the
daylight saving
closing hour, two o ’clock p.m., Eastern/ta&xkaxktime, Monday, June 28, 19l;8
m
—
^
Tenders will not be received at the Treasury Department, Washington.
--------
Each
tender must be for an even multiple of $1,000, and in the case of competitive
tenders 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
TREASURY DEPARTM ENT
Information Service
RELEASE .MORNING NEWSPAPERS,
Friday, June 25,, 19AS»
WASHINGTON, D .C .
_
' 1
.
No. S-774
The Secretary of the Treasury, by this public notice, invites tenders for
$1,100,000,000, or thereabouts, of 9 1 -day Treasury bills, .for cash and in
exchange for Treasury bills maturing July 1, 194 8 , to be issued on a discount
basis under-competitive and non-competitive bidding as. hereinaf ter provided.
The. bills of .this series will be dated July 1, -1948, and will mature
September 30, 1948., when the. face amount will be payable without interest#
They will be issued An bearer form .only, and in denominations; of $1,000,
$5 ,000 , $1 0 , 000 , $100 , 000 , $ 500 ,000 , and $1 ,00 0 ,0 0 0 (maturity value)©
Tenders will be received at Federal Reserve Banks and Branches up to the
closing hour, two o ’clock p*nu, Eastern daylight saving time, Monday, .June 28,
.1948*. Tenders will not be received at the Treasury Department,; Washington*
Each tender must be,., for. an even multiple of $1,000, and in the .case of
competitive tenders the price offered must be expressed on the basis of 100 ,
with not more thaa 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 therefor0
,
Tenders will be received without deposit from incorporated banks and trust
companies and from responsible and recognized dealers in investment securities.
Tenderp 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 a.t 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, non-competitive tenders for
$200,000 or less without stated price from any one bidder will be accepted in
full at the average price (in three decimals) of accepted competitive bids*
Settlement for accepted tenders in accordance with the bids must be made or
completed at the Federal Reserve Bank on July 1, 1948, in cash or other
immediately available funds or in a like face amount of Treasury bills matur
ing July 1 , 1948« Cash and exchange tenders will receive equal treatment*
Cash adjustments will be made for differences between the par value of maturing
bills accepted In exchange and the issue price of the new bills.
•*» â
**
The income derived from Treasury bills* whether interest .or gain from
the gale 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 the Internal Revenue
Code* or laws amendatory or supplementary thereto. The bills shall be
subject to estate* inheritance* gift or other excise taxes* whether Fédéral
or State* but shall be exempt from all taxation now or hereafter imposed on
the principal or interest thereof by any State, or any of the possessions
of the United States* or by any local taxing authority. For purposes of
taxation the amount of discount at which Treasury bills are originally sold
by the United States shall be considered to be interest. Under Sections 42
and 117 (a) (l) of the Int ernal Revenue Code, as amended by Section 115 of
the Revenue Act of 1941* the amount of-discount at which bills issued here
under are sold shall not be considered to accrue until such bills shall be
sold* redeemed or otherwise disposed of* 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* 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
W "
P*
MONDAY JUNE 2 8 .
3jr~77J
Yfttflhin s t o -
An a l l - o u t e f f o r t b y h u n d re d s
of
O h io v o l u n t e e r w o r k e r s to p u t t h e Security L o a n C a m p a ig n » o v e r t h e
to p »
d u r in g
T re a s u ry
th e w eek o f
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th e
in
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th e
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a ls o
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P r e s id e n t o f
p le d g e a t a c e re m o n y
p r e s e n ta tio n
-207
b y G o v e r n o r Thom as
S e c r e t a r y o f th e
o f a p r o c la m a t i o n
^
Ju n e .
a s id e ¿ ¿ to r w e e k ^ a s » S e c u r i t y
L oa n W eek».
In
a c c e p tin g th e
O h io a n s
fo r th e ir
p r o c la m a t io n ^ S e c r e t a r y S n y d e r p a id
s u p p o r t o f th e
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up f o r
in
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p e a c e - t im e
e v e r y O h io c o m m u n ity w i l l e n a b le y o u t o
u rg e
to
U* S • S a v in g s B o n d s p r o g r a m , p o i n t i n g
o u t t h a t as o f M a rc h 3 1 , 2 * 7 b i l l i o n s
h e l d l> y i n d i v i d u a l s
tr ib u te
p a y r o l l s a v in g s
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to
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m
p ro g ra m
a t y o u r b a n k " '. jf*T h e v o l u n t e e r w o r k e r s ^ * s a i d M r , G e lb a c h i n
sponse,
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d e t e r m in e d t o
a s k e v e ry o n e
in
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re
to buy
TREASURY DEPARTMENT
information Service
WASHINGTON, D .C .
RELEASE MORNING NEWSPAPERS.
Monday«-.June 28, 19¿8
___
No« S-775
An all-out effort "by hundreds of Ohio volunteer workers to put
the Security Loan Campaign ’’over the top” during the week of June 28
has been pledged to Secretary of the Treasury John W* Snyder by
Chairman Loring L# Gelbach of the Ohio State U* S. Savings Bonds
Committee*
Mrl Gelbach, who is also President of the Central National Bank
in Cleveland, made the pledge at a ceremony in Secretary Snyder’s
offices during the presentation of a proclamation by,Governor Thomas Ji
Herbert setting aside the week of June 28-July 3 as “Security Loai
Week;»
In accepting the proclamation, Secretary Snyder paid tribute to
Ohioans for their support of the U« S* Savings Bonds program, pointing
out that as of March 31* 2«7 billions of dollars in Savings Bonds were
held by individuals in that State« He also emphasized that the
Security Loan Campaign, the first peace-time drive, is important to
Ohio and to the nation*
“I will be watching the progress of the campaign in Ohio,”
Secretary Snyder stated« ”The patriotic service of citizens in every
Ohio community will enable you to attain your local bond goal* I
urge every adult resident of the State to buy an ektra bond or to
sign up for the payroll savings plan where you work, or the Bond-a-Month
program at your bank«”
“The volunteer workers,” said Mr. Gelbach in response, “are
determined to ask everyone in Ohio, at least once, to buy a Bond”; .
oOo
treasury
departm ent
WASHINGTON, D .C .
Information Service
W ednesday,
June
16,
T H E
TC - 7
19^8
T R E A S U R Y
OFFICE OF THE SECRETARY
Thursday. June 17. Secretary Snyder, ac
companied by Director of the Mint Nellie
Tayloe Ross, will go to Fort Knox, Ken
tucky, on an inspection tour of the gold
depository.
Tuesday. June 22. 9;30 A.M, Secretary
Snyder will speak before the Treasury
Task Force Agencies of the Advertising
Council, Room 4426 Treasury Building.
Thursday. August 5. Secretary Snyder will
address the American Legion Boys’ Forum of
National Government at American Univer
sity, Washington, D. C.
Wednesday. September 22. The Secretary
will deliver a speech before the annual
meeting of the National Association of
Supervisors of State Banks, Louisville,
Kentucky.
C A L E N D A R
OFFICE OF THE FISCAL ASSISTANT SECRETARY
Monday. June 28. Edward F. Bartelt, Fis
cal Assistant Secretary, will speak at
the opening session of a special train
ing program for fiscal officers of the
Department of Agriculture, Endicott, New
York. Subject: »Management of the
Fiscal Affairs of the Government.»
OFFICE OF THE ADMINISTRATIVE ASSISTANT
Wednesday. June 16« 3 P.M.
William W.
Parsons, Administrative Assistant to the
Secretary, will participate in an in
formal discussion at a meeting of the
Society for the Advancement of Management
to be held in the Archives Auditorium.
Subject: »Effecting Management Policy
Fiscal Controls.»
BUREAU OF NARCOTICS
Tuesday. June 22. 2 P.M. Commissioner of
Narcotics Harry J. Anslinger, will ad
Tuesday, June 22. 10 A.M. Under Secretary dress the Pennsylvania Pharmaceutical As
sociation at Harrisburg, Pennsylvania, at
Wiggins will deliver a speech before the
services dedicating their new building.
National Fertilizer Association at White
Subject: »The Importance of
Sulphur Springs, West Virginia,
OFFICE OF THE UNDER SECRETARY
-
2
DIVISION OF SAVINGS BONDS
Thursday. June 24. Leon J. Markham, Na
tional Director of Sales, will deliver^
an address before the Newspaper Advertis
ing Executives Association’s semi-annual
conference at Quebec, Canada. Subjects
»Savings Bonds - An Important Area in the
Nation’s Economy. 11
UNITED STATES COAST GUARD
Thursday. June 17. Admiral Joseph F.
Farley, Commandant of the Coast Guard,
returns on the liner AMERICA from a six
weeks’ stay in London where he attended
the International Conference on Safety of
Life at Sea, Admiral Farley headed the
United States delegation to the confer
ence.
-
Vance L. Kirby, a native of Boston,
Massachusetts, who has been serving as
Assistant Tax Legislative Counsel, suc
ceeds. Mr. DeWind.
John J. Boland of Scranton, Pennsylvania,
a member of the Tax Legislative Staff,
has been named Assistant Tax Legislative
Counsel.
Philip Nichols. Jr,. a native of Boston
and formerly Chief Counsel of the Bureau
of Federal Supply, has been appointed an
Assistant General Counsel of the Treasury
Department.
Bvron Harding, an attorney with the Bu
reau of Federal Supply, succeeds Mr.
Nichols as Chief Counsel, He is a native
of Port Jervis, New York.
v
Friday, June 18. Lt. R. C. Gould, USCG,
will deliver a lecture on Search and
Rescue Developments before the Volunteer
and Organized Reserve, A C T officers,
Naval Intelligence. School, Anacostia, D.C.
BUREAU OF FEDERAL.SUPPLY
Tuesday. June 15. 10:30 A.M, W, E.
Hayghe, Chief, Central Traffic Service
Division, Bureau of Federal Supply, de
livered a statement concerning Federal
traffic practices, before the Bender Sub-'
Committee of the House Committee on Ex
penditures in the Executive Departments.
Thomas J. Lynch
eral Counsel of
Conference Room
Wednesday, June
will be sworn in as Gen
the Treasury Department,
(Room 4426), 1 1 A. M.,
16.
James J. Saxon, by direction of the Sec
retary, has assumed responsibility for
the supervision and coordination of
Treasury information and press matters.
The Treasury Exhibit Room (242S), contain
ing exhibits of the various Treasury bu
APPOINTMENTS AND RESIGNATIONS
reaus, is now open to the public. This
Adrian W, DeWind. Treasury’s Tax Legisla room may be visited 9 A.M. to 3 P. M*,
Monday through Friday.
tive Counsel, has resigned to resume the
practice of law in New York City.
NOTE: Items for the Treasury Calendar may be phoned to the Information Service
over extensions 2041, 2042, 2043: Internal Revenue extensions 650, 651J Coast
Guard, Treasury extension 2993*
T R E A S U R Y P|
- I
Information Service
RELEASE, MORNING NESTSJ
Monday, June 28, 19U8.^
Secretary of the
amendments to, Bepartmei
Savings Bonds, and Department Circular No.
65h, the
circular offering
Series F and G Savings Bonds for sale, which have been issued to cover
the special offering of Series F and G bonds open to certain classes
of institutional investors and certain commercial and industrial tanks
during the period from July 1 through July 15>, 19U8*. Details with
respect to the offering and the various categories of investors
eligible to purchase Series F and G Savings.Bonds under uhe special
offering were contained in the Secretary's statement of June 10, I9I4.8 .
Any applications from eligible subscribers received by a Federal Re -f
setve Bank or Branch, or the Treasury Department, through July 1^>3
I9I4.8 , including any mail applications postmarked up) to midnight of
July 15», will be accepted and processed under this special offering.
The texts of the amendments follow:
TREASURY DEPARTMENT
Information Service
Wa s h i n g t o n , d . c .
RELEASE, MORNING NEWSPAPERS,
Monday, June •28, 19l|8*'
No* 6-776
Secretary of the Treasury Snyder today made public the text of
amendments to. Department Circular No* 530, the Regulations Governing
Savings Bonds, and Department Circular No. 65h, the circular offering
Series F and G Savings Bonds for sale, which have been issued to cover
the special offering of Series F and G bonds open to certain classes
of institutional investors and certain commercial and industrial hanks
during the period from July 1 through July 15, 19h8.
Details with
respect to the offering and. the various categories of investors
eligible to purchase Series F and G Savings.Bonds under the special
offering were contained in the Secretary*s statement of June 10, 19h8.
Any applications from eligible subscribers received by a Federal Re
serve Bank or Branch, or the Treasury Department, through July 15,
19 h8 , including any mail applications postmarked up) to midnight of
July 15, will be accepted and processed under this special offering.
The texts of the amendments follow:
REGULATIONS GOVERNING SAVINGS BONDS
19^8
Fourth Amendment to
Department Circular No. 530
Sixth Revision, dated
February 13, 19^+5
TREASURY DEPARTMENT/
OFFICE OF THE SECRETARY,
Washington, June 25, 19^8.
Fiscal Service
Bureau.of the Public Debt
To Owners of United States Savings Bonds and Others Concerned:
Pursuant to Section 22 (a) of the Second Liberty Bond Act, as amended
(55 Stat. 7,31 TET.S.C. and Supp. 757c); Subpart 0 of Department Circular
No. 530, Sixth Revision, dated February 13, 1S&5 (31 CFR 19^5 Supp., 315),
as amended, is hereby further amended 1 f and revised to read as follows:
Subpart C — LIMITATION ON HOLDINGS
Sec. 3 1 5 »8 . Amount which may be held.--As provided by Section 22 of the
Second Liberty Bond Act , as added February 4, 1935 (U.S.C. 19^6 Ed., title 31,
section 757c), and by regulations prescribed by the Secretary of the Treasury
pursuant to the authority of that section, as amended by the Public Debt
Act of 19^+1, 55 Stat. 7, the amounts of savings bonds of the several series
Issued during any one calendar year that may be held by any one person at
ary one time are limited as follows;
(a) Series A,, By^C, and D .--$10.000 (maturity value) of each series
for each calendar year.
(b) Series E .--$5*000 (maturity value) for each calendar year up to
and including the calendar year 19 ^7 , and $ 10 ,0 0 0 (maturity value) for each
calendar year thereafter.
(c) Series- F and G .~-$50,000 (issue price) for the calendar year 19^1,
and $100,000 (issue price) for each calendar year thereafter, of either
series or of tke 'combined aggregate of both, except that, in the case of
commercial banks authorized to acquire such bonds in accordance with Section
315*5, the limitation shall be such as may have been op may hereafter be
provided specifically in official circulars governing the offering of other
Treasury securities, but in no event in excess of $ 10 0 ,0 0 0 (issue price)
for any calendar year.
1/ The second and third amendments are hereby;withdrawn from circulation.
They were issued, respectively, to provide fop the purchase of savings bonds
of Series E outside of the limitation upder certain conditions and to increase
the Series E limitation from $5 ,0 0 0 to '*$10,000. The pertinent provisions are
set forth in Sections 3 1 5 .8 (b) and 315*9 (d) (¿0 of this amendment.
2
(d)
Special Limitation for Series F and G fronds Purchased by
Institutional Investors and Commercial Banka from July 1 through
July 15, 19^8«— $1,066,000 (issue price) of either series or of the combined
aggregate of both for institutional investors folding savings, insurance
and pension funds and $100,000 (issue price) of either series or of the
combined aggregate of both for commercial and industrial banks holding savings
deposits or issuing time certificates of deposit in the names of individuals
and of corporations, associations, aqd other organizations .not operated for
profit, subject to the following conditions:
(1) For the purposes of this subsection the classes of
institutional investors will be limited to: (i) insurance companies,
(ii) savings banks, (iii) savings and loan associations and
building and loan associations, and cooperative banks, (iv) pension
and retirement funds, including those of the Federal, State and
local governments, (v) fraternal benefit associations, (vi) endow
ment funds, and (vii) credit unions.
(2) Any bonds of Series F-19^-8 and Series G-19^8 purchased
under this special limitation, including any bonds in excess of
$100,000 (issue price) purchased by eligible institutional investors,
must be purchased during the period from July 1 through July 15, 19^-8 *
The regulations set forth in this circular are hereby modified to
accord with the provisions of subsection (d) of this section.
Sec. 315*9* Calculation of Amount,--In computing the amount of
savings bonds of any one series issued during any one calendar year held
by any one person at any one time for the purpose of determining whether
the amount is in excess of the authorized limit as set forth in the next
preceding section, the following rules shall govern:
(a) The term "person" shall mean any legal entity, including but
not limited to an individual, a partnership, a corporation (public or
private), an unincorporated association or a trust estate, and the holdings
of each person, individually and in a fiduciary capacity, shall be computed
separately.
(b) In the case of bonds of Series A, B, C, D, ahd E, the computation
shall be based upon maturit3r values. In the case of bonds of Series F and
G the computation shall be based upon issue prices.
(c) Except as provided in subsection (d), t3|ere must be taken into
account: (l) all bonds originally issued to and registered in the name
of that person alone; (2) all bonds originally issued to and registered
in the name of that person as coowner or reissued, at the request of the
original owner, to add the name of that person as coowner or to designate
him as coowner instead of as beneficiary under the provisions of this circu
lar, except that the amount of bonds of Series E held in coownership form
may be applied to the holdings of either of the coowners, but will not be
applied to both, <?r the amount may be apportioned between them; and (3 ) all
bonds acquired by him before March. 1. 19^1, upon the death of another or
the happening of any other event.
-i
(d)
There need not he taken into account:
(l) boijda of which that
person is merely the designated beneficiary; (2 ) those in which his interest
is only that of a "beneficiary under a trust; (3 ) those to Which he is
entitled as surviving designated heneficiary upo^, the death of the regis
tered owner, as an heir or legatee of the deceased registered ownes^ or
"by; virtue of the termination of a ,trust or the happening of any other
event, unless he became entitled to any such bonds in his own right
before March X. 19^1; or (U) with respect to bonds of Series E, those pur
chased with the proceeds of matured bonds of Series A sS>d Series $-1938,
where the Series A or Series C bonds were presel^ted by an individual
(natural person ,i£ his own right) ow^pr or coowner for that ruifpos© ajyi the
Series E bond.s are registered i^.his name in any form, of registration
authorized for that series.
(©) ¥othlag herein conbaig^d dfhall he construed to invalidate any
holdings within or| except as provided in subsection (a) above, to validate
any holdings in excess of, the authorized limits,.as computed under t^e
regulations in farc^ at the time such holdings were acquired.
Sec. 315.10. Disposition of excess.--If any person at any time acquires
savings bonds issued during any one calendar year i^ excess of the proscribed
amount„Lthe excess must be immediately surrendered for refund of the purchase
price, less (in the case of Series G bonds) any interest which may have been
paid thereon, or for such other adjustment as may be possible.
John ¥. Snyder,
Secretary of the Treasury.
OTITE!) STATES SAFINGS B M D S
Sériés F and Sériés G
19*4-8
Third Amendment to
Department Circular No. 65 *4Second Revision, dated
January 1, 19^,
as amended.
TREASURY DEPARTMENT ,
OFFIGE OF TBE SECRETARY,
Washington., June 25, 19^8
Fiscal Service
Bureau of the Public Debt
Section IF and Section F of Department Circular No. 65*4-, Second
Revision, dated January 1, 19^, as amended, are hereby further amended
to read as follows: .
IF. LIMITATION ON HOLDINGS
1. The amount of,United States Savings Donds of Series F, or of^
Séries G, or the combined aggregate amount of both series originally issued
during any one calendar year to
one person, including those registered
in the name of that person alone, and those registered in the name of that
person with another named as coowner, that may be held by that person at
any one time shall not exceed $100 000 (i3 sue price), except as provided
in paragraph 2. Commercial tardes (which are defined for this purpose as
those accepting demand deposits) are not authorized to acquire savings bonds
of Series F or Series G, except as provided in paragraph 2, or (in accordance
with the provisions of F ? 1 (2) hereof) in official circulars governing
the offering of other Treasury securities. 1/
2 . For the period from July 1, 19^-8, through July 18, 19^8, there
is hereby provided for certain classes of institutional investors, and for
certain commercial and industrial banks ? a special limitation on holding^
as follows :
(l) The limitation will be $1,000,000 (issue price) of United States
Savings Bonds of Series F or Series G or the combined aggregate^of both
for institutional investors holding savings, insurance and pension funds,
and $ 100,0 0 0 (issue price) of either series or of the combined aggregate
of both for commercial and Industrial banks holding savings deposits or
issuing time certificates of deposit in the names of individuals and of
corporations, associations and other organizations not operated for profit.
y
Circulars heretofore issued making provisions for subscription to Series F
and Series G bonds by commercial banks are numbered as follows. 7*.-9 and 7 .?
offering 2-1/2# Treasury Bonds of 1965*70; 73©, offering 2~Xfh$ Treasury
?onds of 1956-59; 7*4-1 and 786, offering 2$ Treasury Bonds of 1982-5A; 788,
offering 2-1/2# Treasury Ba&ds of 1966-71; 770,offering L-l/2^ Treasury
Bonds of 1950; 7 7 6 , offering 2-1/2# Treasury Bonds of 19o7~72; and 777,
offering 2-1 /*+# Treasury Bonds of 1959*62.
(?) For
purposes of this special limitation the classes of
institutional investors will be limited to: (i) insurance companies.
(ii) savings banks, (ill) savings and loan associations and builditeg and
loan associations, and cooperative banks, (iv) pension aj&d retirement fund3 ,
including those of the Federal, State and local governments, (v) fraternal
benefit associations, (vi) endowment funds, and (vii) credit unions.
(3)
Apy bonds of Series F-19*1-8 and Series 0-19^8 purchased vpder this
special limitation, including apy bonds in excess of $ 1 0 0 ,00 © (issue price)
purchased by eligible institutional investors, must be purchased during the
period from July 1 through July 1 5 , 1948.
3* Any bonds acquired on original issue which create an excess must
immediately be surrendered for refund of the issue price, as provided in
the regulations governing savings bonds.
V. AUTHORIZED FORMS OF REGISTRATION
1. United States Savings bonds of Series F and Series G may bo regis
tered only in one of the following forms:
(1) In the names of natural persons (that is,
adults or minors, in their own. right, as follows:
person; (b) in the names of.two (hut pot more than
and (c) in the pame■of one person payable on death
one) other designated person. ,
,,
individuals), whether
(a.) In the name of one
two) person as coowners;
to one (but pcit more than
(2 ) In the name of a% incorporated or unincorporated body in its own
right; but may pot be registered in. the names of commercial banks, which
are defined for this purpose as those accepting demand deposits, except as
provided in IF,2 of this Circular or ho such extent apd under such condi
tions as may hive been or may hereafter be provided specifically in official
circulars governing the offering of other Treasury securities.
(3) In the name of a fiduciary (except where the fiduciary would hold
the bonds merely or principally as security for the performance of a duty
or obligation).
(4) Ip the pame of the owner or custodian of public funds.
2 . Restrictions.--Only residents ^whether individuals or others) of
the United States (which for the purposes of this section shall include the
territories, insular possessions and the Caudal Zone),.citizens of the
limited States temporarily residing abroad and nonresident aliens employed
in the United States by the Federal Government or an agency thereof may be
named, as owners, coowners or designated beneficiaries of saviBgs bonds
originally issued on or after April 1, 194-0,. or of authorized reissues
thereof, except that such persons may name as coowners or beneficiaries of
their bomds American citizens permanently residing abroad or nonresident .
aliens who are not citizens of epemy nation. American citizens perma
nently residing abroad and nonresident aliens who become entitled to bonds
_ ^
under these regulations, by right of survivorship or otherwise upon the
death of another, will have the right only to receive payment either at
or before maturity.
3.
Full information regarding authorized forms of registration will
be found in the regulations currently in force governing United States
Savings Bonds.
John W. Snyder,
Secretary of the Treasury
TREASURY DEPARTMENT
Wa s h in g t o n , d .ö .
Information Service
Ü
Wednesday,
June 23,
T H E
19^8
TC
T R E A S U R Y
OFFICE OF THE SECRETARY
Friday, July 2. % P.M. Secretary Snyder
will attend a luneheon honbringJVene*^
zuelan President Romulo Gallegos at the""
Pan American/Union. On Saturday, July 3 ,
6 - S P.M., the Secretary, accompanied by
Mrs, Snyder, will attend a reception at
the Venezuelan Embassy honoring President
Gallegos and Señora de Gallegos,
Thursday, July 8, Secretary Snyder will
speak before the annual national conven
tion of the Association of Business and
Professional Women, Fort Worth, Texas.
- 8
C A L E N D A R
meeting of the National Association of
Supervisors of State Banks, Louisville,
Kentucky,
Statements by the Secretary
A statement by the Secretary in con
nection with Security Loan Week in
the State of Ohio, for release to
morning newspapers Monday, June 28.
Advance copies will be available
Friday P.M,, *Tune 25, at the Treasury.
OFFICE OF THE UNDER SECRETARY
Saturday, July 17« The Secretary will
attend the joint annual meeting of the
Boards of Directors of the Kansas City
and Denver Branches of the Federal Re
serve Bank, to be held at Denver, Colo
rado,
Thursday. June 2A, Under Secretary
Wiggins will deliver a lecture before the
Graduate School of Banking, Rutgers Uni
versity, New Brunswick, New Jersey.
Thursday. July 15. 1 P.M, Under Secre
Thursday, August 5. Secretary Snyder will tary Wiggins will deliver a speech before
the Durham Kiwanis Club, Durham, North
address the American Legion Boys’ Forum
Carolina.
of National Government at American Uni
versity, Washington, D. C.
Thursday. July 15. 8 P.M, Mr. Wiggins
will address the Carolinas Bankers Con
Igdnesday, September 22. The Secretary
ference at Chapel Hill, North Carolina.
will deliver a speech before the annual
OFFICE OF THE FISCAL ASSISTANT SECRETARY
who on July 1 will succeed Adrian W.
DeWind as Treasury’s Tax Legislative
Monday. June 28. Edward F. Bartelt,
Counsel, will deliver a speech before the
Fiscal Assistant Secretary, will speak at Tax Study Group, New York University, New
the opening session of a special training York City. Subject: ’’The Processes of
program for fiscal officers of the De
Tax Legislation.”
partment of Agriculture, Endicott, New
York. Subject: ’’Management of the Fis
cal Affairs of the Government.”
DIVISION OF SAVINGS BONDS
OFFICE OF THE GENERAL COUNSEL
Wednesday. June 23. Thomas J. Lynch,
Treasury General Counsel, will leave for
Los Angeles, California, to testify in
the case of the Southern California
Edison Company, Ltd, vs. United States
Court of Claims. He will return Friday,
July 2.
Thursday. June 24-. Leon J. Markham, Na
tional Director of Sales, will deliver an
address before the Newspaper Advertising
Executives Association’s semi-annual con
ference at Quebec, Canada. Subject:
’’Savings Bonds - An Important Area in the
Nation’s Economy.”
COMPTROLLER OF Tig CURRENCY
Wednesday. June 23. Comptroller of the
Currency Preston Delano in Chicago to
APPOINTMENTS AND TRANSFERS
make a\survey in connection with charters
and branch applications pending in the
John K. Carlock. a member of the Depart
Chicago district.
ment’s ‘legal staff, has been appointed a
Special Assistant to the General Counsel.
OFFICE OF TAX LEGISLATIVE COUNSEL
James E. Wood, office of International
Finance, leaves Wednesday, June 23, for
Monday. June 2S. 7:30 P.M. Vänce N,
Brussels, Belgium, to take up his duties
Kirby, Assistant Tax Legislative Counsel, as U. S. Treasury representative at the
United States Embassy there.
NOTE: Items for the Treasury Calendar may be phoned to the Information Service
over extensions 2041, 2042, 2043? Internal Revenue extensions 650, 651; Coast
Guard, Treasury extension 2993.
IMMEDIATE ESLEASE,
Wednesday. June ^0. 19^-8.
The Secretary of the Treasury today announced the subscription and allotment
figures with respect to the current offering of 1-1/8 percent Treasury Certificates
of Indebtedness of Series F-19i*9, to be dated July 1, 19i*8, open to the holders of
Treasury Certificates of Indebtedness of Series F-1S&S, Series 0-191*8 and Series
H-19l*S, all maturing July 1, 191*8*
Subscriptions and allotments were divided among the several Federal Beserve
Districts and the Treasury as follows i
Federal Beserve
D istrict
Series F-19US
Certificates
Series G-19H8
Certificates
Series H-19U8
Certificates
Exchanged
Exchanged
Exchanged
Boston
lew fork
$ 1*6,8811»000
1,706,557,000
#
58,530,000
19*360,000
39,1*97,000
21*7,561*, 000
61»,315,000
h3,657,000
78,056,000
51,022,000
175,91*0,000
1,283« 000
12,986,000
696,807,000
21,376,000
19,231,000
8,687,000
27,378,000
107,177,000
28,1*71*,000
25,813,000
1*1*,600,000
21, 951»,000
63,171*, 000
926,000
# 38,31*1*,000
1,333,331,000
57,303,000
1*1*,51*5,000
15,965,000
38,298,000
21*2,81*2,000
53,1*22,000
52,1*67,000
70,912,000
33,182,000
121,021,000
1,388,000
# 98,211», 000
3,736,695,000
11*7,699*000
122,306,000
ldt,012,000
105,173,000
597,583,000
11*6,211,000
321,937,000
193,568,000
106,158,000
360,135,000
#2,601,685,000
#1,078,583,000
#2,103,020,000
#5,783,288,000
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St* Louis
Minneapolis
Kansas City
Dallas
San Francisco
Treasury
TOTAL
69 f 020,000
Total
Exchanges
3.$97»0QQ
IMMEDIATE RELEASE,
Wednesday» June 30, 19¿8»
No« SV777
The Secretary of the Treasury today announced the subscription and allotment
figures with respect to the current offering of 1-1/8 percent Treasury
Certificates of Indebtedness of Series F-1949, to be dated duly 1, 194$, open to
the holders of Treasury Certificates of Indebtedness of Series F-194$, Series
G-1948 and Series H-1943, all maturing July 1, 1948«
Subscriptions and allotments were divided among the several Federal
Reserve Districts and the Treasury as follows:
Federal Reserve
District
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chic ago
St* Louis
Minneapolis
Kan sas City
Dallas
San Francisco
Treasury
TOTAL
Series F-1948
Certificates
Exchanged
$
46 ,884 ,0 0 0
1,706,557,000
69 ,0 20,000
58,530,000
1 9 ,3 6 0 ,0 0 0
39,497,000
247 , 56 4 ,000
64,315,000
43,657,000
78,056,000
51,022,000
175,940,000
1,283,000
Series G-I948
Certificates
exchanged
$
1 2 ,896,000
696,807, 000
21,376,000
1 9 ,2 3 1 ,0 0 0
8,687,000
27,378,000
107,177,000.
28,474,000
25,813,000
44,600,000
21,954,000
6 3 ,1 7 4 ,0 0 0
926,000
$>2,601,685,000 $1,078,583,000
oOo
Series H-194Ö
Certifie ates
Exchanged
3 8 ,344 .»000
1 ,3 3 3 ,3 3 1 ,0 0 0
5 7 ,3 0 3 ,0 0 0
44 , 5 45,000
15,965,000
3 8 ,29 8 ,0 0 0
242 ,8 4 2 ,0 0 0
5 3 ,4 2 2 ,0 0 0
. 52 ,4 6 7,0 0 0
7 0 ,9 1 2 ,0 0 0
33,182,000
121,021,000
1,388,000
$
Total
Exchanges
$ 98,214,000
3, 7 3 6 ,69 5,000
147,699,000
122 ,30 6 ,0 0 0
44 ,0 1 2 ,0 0 0
105,173,000
597,583,000
146 ,2 1 1 ,0 0 0
121,937,000
193,568,000
106,158,000
360,135,000
3,597,000
$2,103,020,000 $5,783,288,000
- 3of 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 tho Reve
nue Act of 19U1, 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, vfhether 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, prescribe
the terms of the Treasury bills and govern the conditions of their issue.
of the circular may be obtained from any Federal Reserve Bank or Branch.
Copies
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, non-competitive tenders for $200,000 or
less without stated price from any one bidder Yfill be accepted in full at the
average price (in three decimals) of accepted competitive bids.
Settlement for
accepted tenders in accordance with the bids must be made or completed at the
Federal Reserve Bank on
July 8,
19U8
, in cash or other immediately avail-
able funds or in a like face amount of Treasury bills maturing
Cash and exchange tenders m i l receive equal treatment.
July 8» 1914-8
Cash adjustments will be
made for differences between the par value of maturing bills accepted in exchange
and the issue price of the new bills.
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 the Internal Revenue Code, or laws amendatory or supplement
tary thereto.
The bills shall be subject to estate, inheritance, gift
or other
excise taxes, Y/hether 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
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Tuesday, June 2 9 , 1 9 U 8 .
The Secretary of the Treasury, by this public notice, invites tenders for
$ ‘1,100,000,000
i or
thereabouts, of
91
in exchange for Treasury bills maturing
-day Treasury bills, for cash and
July 8, 19U8
, to be issued on
W
a discount basis under competitive and non-competitive bidding as hereinafter
provided.
The bills of this series will be dated
^
will mature -------------October 7» 19U8
interest.
July 8, 19U8
, and
, when the face amount will be oavable without
They will be issued in bearer form only, and in denominations of
$1,000, $5,000, $10,000, $100,000, $500,000, and $1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the
daylight saving
closing hour, two o Tclock p.m., Eastern/StaEteosi time, Friday, July 2, 19U8
(7)
Tenders will not be received at the Treasury Department, Washington. Each
tender must be for an even multiple of $1,000, and in the case of competitive
tenders 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
TREASURY DEPARTMENT
Information Service
EELEASKj UOraiNG NEWSPä PEES
Tuesday, June 29* 1948.
WASHINGTON, D .C .
No. S-778
The Secretary of the Treasury, by this public notice, invites tenoers for
$1,100,000,000, or thereabouts, of. 9'1-day Treasury bills, for cash and ^in
exchange for Treasury bills maturing July 8, 194-8, to.be issued on a discount
basis under competitive and non-competitive bidding as hereinafter provided#
The bills of this series m i l be dated July 8, 1948, and ■will mature
October-7, 1948, when the face amount will be payable without interest. They
will be issued in bearer form only, and in denominations of &1,000, $5*000,
$10,000, $100,000, $500 ,000 , and $1,000,000 (maturity value).
Tenders will be received at Federal .
‘.Reserve Banks and Branches up to the
closing hour, two o ’clock p.m#, Eastern daylight saving time, irid ay, July 2,
1948. Tenders m i l not be received at the Treasury Department, Washington.
Each tender must be for an even multiple of $1,000, and in the case .of •
competitive tenders 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 reject
any or all tenders, in whole or in part, and his action in any such respe ct
shall be final. Subject to these reservations, non-competitive tenders for
$200,000 or less without stated price from any one bidder will be accepted
in full at the average price (in three decimals) of accept ed competitive
bids. Settlement for accepted tenders in accordance with the bids must be
made or completed at the Federal Reserve Bank on July 8, 1948, in cash or
other, immediately available funds or in .a like face amount of Treasury bills
maturing July 8, 1948. Cash and exchange tenders will receive equal treat
ment. Cash adjustments will be made for differences between the par value of
maturing bills accepted in exchange and the issue price of the new bills*
-
2
-
The income derived from Treasury bills, whether interest.,or gain from
.thé sale or other disposition of the bills, shall not have any exemption,
as such, and loss from the sale or other disposition of Treasury bi-lls shall
not have any special' treatment, as such, under the Internal Revenue Code,
or laws amendatory or .supplementary thereto* 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 hills are originally sold by the
United States shall .be considered to be interest* Under Sections ¿+2 and
117 (a) (l) of the Internal Revenue Code, as amended by Section 115 of the
Revenue Act of 1941* the amount of discount at which bills issued »hereuni er
are sold shallnot .be considered to accrue until such bills, shall be sold,
redeemed or otherwise disposed of, and such bills are excluded from consid
eration as capital assets* Accordingly, the owner of Treasury bills (other
than life insurance companies) issued hereunier 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* 4-1S, 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
-
release, w m xm jm spafses ,
taMflay, M i
29. 1948.
secretary of the Treasury announced last evening that the tenders for
#1,100,000,000» or thereabouts, of 91-day Treasury hills to be dated July 1 and to nature
September 30, 1948, which were offered June 25, 1948, were opened at the federai Reserve
Basics on June 88«
The details of this issue are as follows!
Total applied for — #1,999,999,000
Total accepted
- 1,181,996,000
Average price
„_
(includes #29,007,000 entered on a non
corapetit ive basis and accepted in full at
the average pries shown below)
- 99.948 Equivalent rate of discount approx. 0.999# por annua
fang* of accepted competitive bids!
mah
let
- 99.968 Equivalent rate of discount approx. 0.981# per annum
- 99.949
«
m m *
*
1.001# *
*
.
:
„
(66 percent of the amount bid for at the low price was accepted)
federal Reserve
District
Total
Applied for
Total
Accepted
Boston
Hew York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San francisco
#
#
TOTAL
61,133,000
1,490,983,000
13.996.000
36.060.000
3.366.000
10.400.000
129,094,000
1.340.000
8.910.000
10.228.000
3.920.000
33.901.000
#1,999,999,000
£0,808,000
874.918.000
16.410.000
26.520.000
3.366.000
10.400.000
104.819.000
1.016.000
9.990.000
9.613.000
3.909.000
29r901|000
* i,io i,m ,o o o
TREASURY DEPARTMENT
Information Service
WASHINGTON, D .C
RELEASE, MORNING NEWSPAPERS,
Tuesday, June 29» 1948»_____
No* S~779
The Secretary of the Treasury announced last evening that the tenders
for $1,100,000,000, or thereabouts, of 91-day Treasury bills to be dated
July 1 and to mature September 30 , 194-8* which were offered June 25* 1948,
were opened at the Federal Reserve Banks on June 28»
The details of this issue are as follows:
Total applied for - $1*777*999*000
Total accepted
- 1,101,696 ,000 (includes $29*007*000 entered on a n oncompetitive basis and accepted in full
at the average price shown below)
Average price
- 99*748 Equivalent rate of discount approx* 0*997$
per annum
Range of ’accepted competitive bids:
High
-
Low
-
99*752 Equivalent rate of discount approx* 0*981$
per annum
99*747 Equivalent rate of discount approx* 1*001$
per annum
(35 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
TOTAL
Tot al
Accepted
$
21*133,000
1,490,783* 000
13*775*000
3 2 ,020 *000
3 ,3 2 5 ,0 0 0
1 0 ,400,000
129 *064*000
1 ,340*000
' 8,610*000
10,228*000
3,620*000
53*701,000
$
1 1 ,7 7 7 ,9 9 9 ,0 0 0
$1*101*696,000
0 O0
20,808,000
874*618*000
1 2 *4 1 0 ,0 0 0 i
25 * 520 ,0 0 0
3 *32 5 ,0 0 0
10 *4 0 0 ,0 0 0
104*819*000
1,015,000
7 *9 6 0 ,0 0 0
9*513*000
3*607,000
27,701,000
2 -
Face Amount
$7,004, 000,000
423 ,000 ,0 0 0
7f°
Rate
2%
2-1/8%
$7 ,427 ,000 ,0 0 0
Interest
$70, 040,000.00
3,133,324.18
$73,173,324.18
On June 30, 1947, the check which was issued for a similar transaction
was in the amount of $7,123,000,000.
At that time, the Fund held maturing
special issues in the amount $7 ,059 , 00 0 ,0 0 0 on which interest of
$64,783,000 was collected.
The increase in the amount of the reinvestment
check this year is due primarily to the excess of approximately $300 ,000,000
of state deposits over withdrawals in the Fund during the year and Interest
collections of approximately $165,000,000, part of which was applied in
acquiring .$87,000,000 face amount of marketable securities.
0 O0
*PROPOSED PRESS RELEASE
\o.
Secretary Snyder today signed a Treasury check in the amount of
$7,500,000,000, the largest check ever issued«
The multi-billion-doliar instrument was drawn for the purpose of re
investing the proceeds of special Treasury certificates of indebtedness
owned by the Unemployment Trust Fund, which mature on June 30, 1943»
The Secretary of the Treasury is directed by law to invest such
portion of the Unemployment Trust Fund as is not needed to meet current
withdrawals, and specifies the types of securities in which such investments
may be made«
Since the Fund's inception, the greater part of its invest
ments has been in special obligations issued exclusively to the Unemployment
Trust Fund«
These special certificate issues, Secretary Snyder pointed out today,
are cne-year obligations which mature on June 30 of each year, regardless
of the day on which they are issued«
They earn interest at the average rate
of interest of all outstanding interest-bearing obligations of the United
States forming a part of the public debt at the close of the month preceding
the date of issuance«
The law provides that the rate of interest of such
special obligations "shall be the multiple of one-eighth of 1 per centum
next lower than such average rate«"
The May 31* 1943, average rate of interest, on which the June 30- investment
is based, was 2.174$*
The new issue of certificates will, accordingly, bear
interest at the rate of 2-1/8$.
The maturing special issues on June 30, 1943, comprising the anounts
against which the check for $7,500,000,000 is drawn, may be stated as
follows:
T reasury department
Wa s h in g t o n , d .c .
Information Service
IMMEDIATE RELEASE,
Wednesday, June 30, 194-8,
Ko- s'780
Secretary Snyder today signed a Treasury check in the amount of
$7,500,000,000, the largest check ever issued.'
The multi-billion-dollar instrument was drawn for the purpose of rein
vesting the proceeds of special Treasury certificates of indebtedness owned
by the Unemployment Trust Fund, which mature on June 30, 194-8.
The Secretary of the Treasury is directed by law to invest such portion
of the Unemployment Trust Fund as is not needed to meet current withdrawals,
and specifies the types of securities in which such investments may be made.
Since the Fund’s inception, the greater part of its investments has been in
special obligations issued exclusively to the Unemployment Trust Fund.
These special certificate issues, Secretary Snyder pointed out today,
are one-year obligations which mature on June 30 of each year, regardless of
the day on which they are issued. They earn interest at the average rate of
interest of all outstanding interest-bearing obligations of the United
States forming a part of the public debt at the closo of the month preceding
the date of issuance. The law provides that the rate of interest of such
special obligations ”shall be the multiple of one-eighth of 1 per centum next
lower than such average rate,”
The May 31, 194.8, average rate of interest, on which the June 30 invest
ment is based, was 2,174$* The new issue of certificates will, accordingly,
bear interest at the rate of 2-1/8$•
The maturing special issues on June 30, 194-8, comprising the amounts
against which the check for $7,500,000,000 is drawn, may be stated as follows:
Face Amount
Rate
Interest
$7,004.,000,000
$70,04-0,000*00
3,133,324-* 18
$7,427,000,000
$73,173,324-018
4-2 3 , 000,000
On June 30, 194.7, the check which was issued for a similar transaction
was in the amount of $7,123,000,000* At that time, the Fund held maturing
-
2
-
special issues in the amount $7,059,000,000 on which interest of $64,783*000
was collected. The increase in the,amount of the reinvestment check this
year is due primarily to the excess of approximately $ 3 0 0 ,00 0 ,0 0 0 of state
deposits over withdrawals in the Fund during the year and interest Col
lections of approximately $165,000,000, part of which was applied in acquiring
$87,000,000 face amount of marketable securities.
-o0o~
TREASURY
D E P A R T M E N T
Information Service
Wa s h i n g t o n , d .c .
TC
- 9
Wednesday, June 30, 19^8
T H E
T R E A S U R Y
OFFICE OF THE SECRETARY
Wednesday» June 30, 10 A.M. Secretary
Snyder signed check for $>7,500,000,000,
representing the investment of the Unem
ploymentATrust Fund in special Treasury
certificates. The ceremony, which took
place in the Treasury Conference Room,
was attended by twenty newsreel, press
and television photographers.
Friday. July 2. 12 Noon. Secretary’s
regular weekly press conference.
Friday. July 2. 1 P.M. Secretary Snyder
will attend a luncheon honoring Venezue
lan President Rcmulo Gallegos at the Pan
American Union..
C A L E N D A R
attend a reception at the Venezuelan
Embassy honoring President Gallegos and
Señora de Gallegos.
Sunday. July 4.« 6 - 8 P.M. Secretary
Snyder and Mrs. Snyder will attend a re
ception at the Philippine Embassy.
Wednesday. July 7. 10 P.M. Secretary
Snyder leaves for Fort Worth, Texas.
Thursday, July 8, 11 to ll.t30 A.M..- CST.
Secretary’s press conference in the
twelfth floor reception room of the Fort
Worth Club. Press and radio representa
tives of Fort forth, Dallas and adjacent
territory are invited to attend.
Thursday. July 8, 1:30 P.M... CST. Secre
tary delivers address at the Colliseum in
Saturday, July 3. 12. Noon. Secretary
the Will Rogers Memorial, Fort Worth-., be
Snyder will review parade commemorating
fore the Biennial Convention of the Na
the 100th anniversary of the laying of
the cornerstone of the Washington National tional Federation of Business and Pro
Monument. The ceremonies will take place fessional Women’s Clubs. Subject:
’Women in Government.” Text available
at the base of the monument.
Friday, July 2.
Saturday, July 3. 6 - 8 P.M. The Secre
tary, accompanied by Mrs. Snyder, will
2
OFFICE OF THE SECRETARY
(Cont inued)
Thursday, July S, 3 to 3:30 P, M., CST.
Secretary Snyder will call on Mayor F.
Edgar Deen in his offices at the Fort
Worth Municipal Building,
Thursday, July S, 6:30 P.M,, CST. The
Secretary will be the honored guest at a
reception and dinner given by Publisher
Amon Carter at the Fort Worth Club,
Friday, July 9, S A,M,, CST, Secretary
Snyder leaves Fort Worth for Washington,
Saturday, July 17, The Secretary will
attend the joint annual meeting of the
Boards of Directors of the Kansas City
and Denver Branches of the Federal Re
serve Bank, to be held at Denver, Colo
rado .
BUREAU OF CUSTOMS
Edson J. Shamhart, Deputy Commissioner of
Customs, is on the Mexican border han
dling the reorganization of the Customs
Agency Service in that area. He will re
turn to Washington sometime in July
BUREAU OF INTERNAL REVENUE
Wednesday. June 30. 10 A.M.
Fred S .
Martin, former Assistant Deputy Commis
sioner of the Income Tax Unit, was sworn
in as Assistant Commissioner of Internal
Revenue. Mr. Martin assumes the posi
tion left vacant by the retirement of
W. T. Sherwood.
APPOINTMENTS AND RETIREIKENTS
Tuesday, July 27, 8 P,M, Secretary
Snyder will be honor guest at a dinner
meeting of the General Electric Company’s
Annual Business Conference, Association
Island, Lake Ontario,
Thursday, August 5« Secretary Snyder
will address the American Legion Boys’
Forum of National Government at American
University, Washington, D. C.
Wednesday. September 22. The Secretary
will deliver a speech before the annual
meeting of the National Association of
Supervisors of State Banks, Louisville,
Kentucky,
Gesualdo Costanzo, formerly with the
State Department, has been appointed As
sistant Treasury Representative at the
American Embassy in Rome, Italy. He is
how enroute to Rome.
Clifford H. Stowe has been appointed As
sistant Deputy Commissioner of the Income
Tax Unit, Bureau of Internal Revenue, He
succeeds Fred S. Martin, newly appointed
Assistant Commissioner. Mr. Stowe was
formerly a member of the Excess Profits
Tax Council.
John N. Bready replaces Mr. Stowe as a
member of the Excess Profits Tax Council,
Bureau of Internal Revenue.
OFFICE OF THE UNDER SECRETARY
Thursday, July 15. 1 P.M. Under Secre
tary Wiggins will deliver a speech before
the Durham Kiwanis Club, Durham, North
Carolina.
Thursday, July 15. 8 P.M. Mr. Wiggins
will address the Carolinas Bankers Con
ference at Chapel Hill, North Carolina,
A. J, Walsh has been appointed a special
assistant to the Director of the Bureau
of Federal Supply, to be in direct charge
of the Strategic and Critical Materials
Program. Mr. Walsh, who is transferring
from the Department of State, was Assist
ant Director of €he Bureau during the
war period.
- 3 i
APPOINTMENTS AND RETIREMENTS
(Continued)
Harry C. Shepherd, with U5 years Govern
ment service, and a member of the Secret
Service since 1917, retires June 30.
W. E. Perry« head of Purchases and Stores
Division of Office Services, retires
June 30, He has been in the Government
39 years, and with the Treasury since
documents, counterfeiting presses, plates
and bills seized by the Secret Service;
opium, hashhish, marijuana, smoking para
phernalia,. and other illicit items taken
by Narcotics and Customs, and Coatet Guard,
safety devices in miniature. These ex
hibits may be viewed between the hours of
9 A.M. and 3 P.M., Monday through Friday.
.
1916
Miss Gertrude C. Lombard of the Office of
the Technical Staff, retires June 30.
She has been in the Government service 31
years, 10 of which were spent in the
Treasury.
RELEASES
The Fiscal Yearend Statement of the
Treasury Department will be available
Friday Noon, July 2, in Room 4408.
The tax study, ^Federal Excise Taxes on
Alcoholic Beveragesw, for release iit
morning newspapers, July 16, will be
available in Room ¿4-08, on Tuesday,
July 13.
BOND DRIVE
William W. Parsons, Administrative As
sistant to the Secretary, has asked the
assistance of all Heads of Bureaus and
Offices in the Treasury in carrying out
the revitalized payroll savings plan- in
the Department, as it relates both to the
current Security Loan Drive, and the pro
gram for Payroll Savings as a continuing
policy.
Secretary Snyder recently stated his de
sire that all Treasury offices cooperate
fully in the revitalized program, and
that an effort be made ’
to give every
Treasury employee an opportunity to par
ticipate in the regular payroll savings
plan.
¡The Secretary takes just pride in the
¡fact that the Treasury Department curIrently stands Number One in the Payroll
¡Savings Program in the Federal Governjment.
xTREASURY EXHIBIT ROOM
Since their opening in early May, the
Treasury exhibit rooms have attracted
more than 14,000 visitors. Displays in
clude dozens of interesting historical
'¡Commander Samuel Gray has been appointed
Coast Guard representative in connection
¡with the revitalized Payroll Savings proigram. The alternate is Commander R. S.
¡Lecky.
NOTE: Items for the Treasury Calendar may be phoned to the Information Service
over extensions 2041.2042. 2043: Internal Revenue extensions 650, 651; Coast
Guard. Treasury extension 2993,
TREASURY
Information Servie»
IMMEDIATE RELEASE
Friday, July 2. 19Hi
Secretary of the Treasury John W. Snyder announced today that
during the fiscal year 1948, which closed on June 30* the ae^
T&~
ceipts of the United States Government exceeded expenditures hy
$8,419,000,000*
This $8,419,000,000 represents the actual excess of receipts
over expenditures in the fiscal year, and compares with a correspond
ing figure on the same basis of $754,000,000 in the fiscal year which
closed on June 30, 1947*
The excess of receipts over expenditures in the fiscal year 1948
is the largest in the history of the Government*
It is more than
seven times the highest previous surplus of $1 ,1 5 5 *0 0 0 *0 0 0 ,
which oc
curred in the fiscal year 1927*
The fiscal year's operations in more detail are as follows!
I*
BUDGET RESULTS
The surplus of $8,419,000,000 is $937*000,000 hi^ier than esti
mated in January*
Receipts were $465,000,000 below the January esti
mate, reflecting in part the loss of revenue under the Revenue Act of
I
TREASURY DEPARTMENT
Information Service
Wa s h i n g t o n , d .c .
IMMEDIATE RELEASE
Eriday, July 2. 19^8
Ho. S-781
Secretary of the Treasury John W. Snyder announced today that
during the fiscal year 19^8, which closed on June 3^t the net re*
ceipts of the United States Govenunent exceeded expenditures hy
$8,419,000,000.
This $8,419,000,000 represents the actual excess of receipts
over expenditures in the fiscal year, and cospares with a correspond
ing figure on the sane has is of $75^,000,000 in the fiscal year which
closed on June 3 0 , 19^7*
The excess of receipts over expenditures in the fiscal year 1948
is the largest in the history of the Government.
It is more than
seven times the highest previous suxplus of $1 ,1 5 5 ,0 0 0 ,0 0 0 , which oc
curred in the fiscal year 1 9 2 7 .
The fiscal year*s operations in more detail are as follows:
I.
BUDGET RESULTS
The surplus of $8,419,000,000 is $937,000,000 hitler than esti
mated in January.
Receipts were $**6 5 ,000,000 helow the January esti
mate, reflecting in part the loss of revenue under the Revenue Act of
1948.
Adjusting the revenue estimate for this loss, receipts
were only $1 3 5 »0 0 0 »Q00 or three tenths of one percent higher
than the estimate*
Expenditures were $1,402,000,000 less than
the January estimate, due principally to the fact that there has
been some delay in expenditures for foreign aid and for the
National Military Establishment.
Net receipts amounted to $44,746,000,000, an increase of
$1,487,000,000 compared with last year.
An increase of more
than this amount in income tax receipts was partially offset by
a decline in proceeds of sales of surplus property.
Total expen
ditures amounted to $36,326,000,000, a decrease of $6,179»
compared with the fiscal year 1947*
This decrease is accounted
for principally by reductions in expenditures for the National
Military Establishment (mostly armed forces leave payments) and
those for international finance.
A comparative table showing the trend of expenditures by
major activities during the last three fiscal years is shown
below (in billions of dollars):
- 3 -
Increase (+)
or
Decrease (-)
1948 from 1947
19H6
i2i£L
iqi*s
$1*3.1
$2.0
12.8
11.7
-$1 .7
-1.1
Veterans* Administration
4*3
7*3
6.5
-.8
Interest on the public debt .......
l*.7
5*0
5.2
+.2
Tax refunds.....
3.0
3.0
2*3
-7
.6
•9
2.1
•1
•5
1.7
♦.1
-,i*
— 4
•2
i.i*
—
7.8
8.0
8.0
63.7
42.5
36.3
Budget Expenditures
Hational Military Establishment:
Armed forces leave payments »»•*
Other ...................*.... .
International finance:
Economic Cooperation Admin
istration ........ .
Eaq?ort-Import Bank ••••.»......
Credit to United Kingdom »•••»..
Subscriptions to International
Bank and Monetary Fund .......
—
All o t h e r ......... ..............
Total (excluding transfer to
Foreign Economic Co
operation Trust Fund) ...
Transfer to Foreign Economic
Cooperation Trust Fund SJ »»»..«
Total (including transfer to
Foreign Economic Co
operation Trust Fund) •••
—
ZZ
63.7
$.3
-1.4
—
- 6 .2
—*
a/3.0
+3.0
te.5
39.3
-3*2
a/ Section ll4 (f) of the Economic Cooperation Act of 1948, approved
April 3, 19^8, required that the sum of $3,000,000,000 be trans
ferred to a trust fund entitled "Foreign Economic Cooperation
Trust Fund" and "considered as expended during the fiscal year
1 9 ^8 , for the purpose of reporting governmental expenditures.*
The effect of this is to charge the budget in the fiscal year
19 ^ 8 for expenditures to be made in the fiscal year 1949, with
consequent effect on the surplus or deficit of those years. This
bookkeeping transfer has no effect on the actual timing of expendi
tures. It does not change by a single dollar the amount of taxes
payable by the American public, nor change by a single day the time
when these taxes are paidj neither does it change by a single dollar
the amount of expenditures, nor change by a single day the time when
they are paid.
- k -
II,
POBLIC DEBT
The gross public debt amounted to $2 5 2 ,2 9 2 ,0 0 0 ,0 0 0 on June 3^, 1 9 ^ t
a decrease of $5,99^,000,000 during the year.
In addition, guaranteed
debt held outside the Treasury declined $16,000,000 during the year.
A
reconciliation of the budget surplus with the change in the public debt
follows (in billions of dollars):
Budget surplus ............ ......$6 .^
Less:
Increase in general
fund balance .......
1 .6
Excess of expenditures
in trust accounts,
©tc.S/ ........... .
*8
Decrease in gross public debt ...
6.0
Changes in composition of debt
Interest-bearing marketable public debt issues were reduced
$8 .356,000,000 during the fiscal year.
This reduction was partially
offset by increases in special issues to Government trust funds and
investment accounts of $2 ,8^5 ,0 0 0 ,0 0 0 , a net increase in savings bonds
outstanding of $1 ,9 2 6 ,0 0 0 ,0 0 0 , and net sales of 2-1 /2# investment
series bonds amounting to $959,000,000.
Bedenptions of Treasury sav
ings notes were $1 ,1 5 9 ,0 0 0 ,0 0 0 in excess of sales, arising primarily
from the use of such notes for payment of taxes.
Net redemptions of
armed forces leave bonds amounted to $1 ,2 2 9 ,0 0 0 ,0 0 0 and. there were
redemptions of noninterest-bearing special notes held by the Inter
national Bank for Reconstruction and Development and the International
aj
Includes clearing account for outstanding checks and
telegraphic reports from Federal Reserve Banks.
- 5Monetary Fund amounting to $913*000,000.
The following summary shows the gross public debt outstanding on
February 28 , 19^6 (the highest point of the debt), June 30, 19^7» and '
June 30, 1^8 , together with the debt after deducting the general fund
balance
(in millions
of dollars):
June 30 ,
19HS
Change
During
From
2/28/46
fiscal
year
to
1948
6/30/48
Tel). 26,
1946
June 30,
Gross public debt
Interest-bearing:
Public issues:
Marketable ••••*
Nonmarketable .•
$199,8X0
57.206
-$8,356
$168,702 $160,346 -$39,464
•«461
59,506. +2.30059.045
Subtotal ...
257,016
227.747
219,852
-37,164
-7,395
Special issues ...
20,897
27.366
30,211
+9,314
+2,845
2,l40
1.227
+1,227
-913
1,301
1,033
1,002
«299
-31
279,214
258,286
252,292
-26,922
-5,994
Less:
General fund balance
25,961
3,308
4.932
-21,029
♦1 ,62^
Gross public
debt less
general fund
balance ..»•
253.253
254,978
247,360
-5,893
-7.618
Classification
Nonint erest-bearing
notes issued to
International Bank
and Monetary Fund.
Other —
..«...••••«
Total gross
public debt •
aj
1947
Includes matured debt and debt bearing no interest.
Maturities of marketable securities
Since February 28, 19^-6 (the highest point of the public debt),
interest-bearing marketable public debt obligations have been reduced
$39,1*6^,000,000.
The following table shows changes in the maturity
distribution of marketable obligations since February 2 8 , 1 9 **6 :
(In millions of dollars)
Period to maturity
or first call date
Feb. 28,
19lf6
June 30,
19^7
June 30»
191*8
Change
During
From
2/28/1*6 fiscal
year
to
6/30/1*8
19l*8
Within 3 months......
$29,3^9
$26,650
$24,035
-$5 .31 ^ -$2,615
3 months to 1 year ...*
4o , 9i 4
25.677
25,723
-15,191
1 to 10 years ........
68.519
61,567
56,700
-11,819
Over 10 years.......
61,028
54,807
53,888
199, a o
168,702
160,346
Total
+¿*6
-4 ,8 6 7
-9 19
-39,464
-8 ,3 5 6
U. S. savings bonds
The Treasury has continued to emphasize the sale of United States
savings bonds to help counteract inflation and to secure as wide a dis
tribution of the public debt as possible.
The current redemption value
of savings bonds of all series outstanding on June 3°, 19^, was
$53»27^,000,000, as compared with $51,367,000,000 a year ago.
The amount
now outstanding is at an all-time peak.
Interest on the public debt
Interest payments on the public debt during the fiscal year 19^8
amounted to $5 ,2 1 1 ,0 0 0 ,0 0 0 , an increase of $2 5 3 ,0 0 0 ,0 0 0 compared with
- 71 9 U7 .
¡This increase is due to several factors*
Discount accruals on
savings bonds, included in interest payments, amounted to $80^,000,000,
an increase over the preceding year of $113,000,000*
Interest paid on
special issues held hy trust funds and Government investment accounts
continued to increase compared with previous years*
Interest savings realized in 19^8 from paying off marketable debt
maturities were offset to some extent by the increase in short-term
interest rates*
During the year the rate on 91-day Treasury bills, which
had been maintained at 3 /8# for a number of years, was allowed to rise to
about 1$*
The Treasury, however, recovers a substantial amount of this
increased interest cost on Treasury bills as the Federal Deserve Banks
V
hold the greater part of such securities and pay 90$ of their net earn
ings into the Treasury*
The increase during the year in the interest
rate on one-year certificates of indebtedness from
to 1 - 1 /8$
j/8fi to
1 $ and then
will not be reflected in interest payments until the maturity
of such certificates in the fiscal year 19^9«
The over-all computed average rate on the interest-bearing public
debt outstanding on June 3 0 , 19^8. was 2.182$. compared with 2*107$ a
year ago*
This increase in the average interest rate was due principally
to the increase in short-term rates (bills and certificates) and the
continued issue of nonmarketable and special issues at higher than
average rates*
Attachments:
No* 1 - Classified Statement of Budget Receipts and Ibqpenditures,
Fiscal Years 19^6 - 19^S.
Ko* 2 - Composition of O u t s t a n d i n g Public Debt, February 2 8 , 19**6,
June 3 0 , 19^7» and June 3 0 , 19^8.
Ro* 3 - Disposition of Matured Marketable Securities during
Fiscal Year 19^8.
Attachment No* 1
C L A SSIF IE D STATEMENT OF
BUDGET R E C E IP TS AND EXPENDITURES
F IS C A L YEARS 1946 - 1948
( In m illio n s o f d o lla r s )
In cre a se (/) or
Decrease ( - )
1948 From 1947
1946
1947
1948
$9 ,3 9 2
2 1 ,493
7 ,7 2 5
1,4 1 8
283
13
435
501
3 .0 1 6
$ 1 0,013
19,292
8,049
1 ,6 4 4
380
14
494
2 ,3 8 6
1.945
$11,436
1 9 ,735
. 8 ,3 0 1
1 ,8 2 4
557
15
422
1,929
2 .1 4 3
44 ,2 7 6
4 4,718
46,362
B u d g et R e c e ip ts !
I n te r n a l revenue!
In c o m e t a x :
R tl
O d 1|l¥ini } 1 0 YnWIlt i n d m ta n n * i'n n 'H 'l h i i t l oTlfi
A p p r o p r ia tio n t o F e d e r a l o ld -a g e and s u r v iv o r s '
R u ral E io o t r ift c a tio n
A d n H p 4 s t r a t io n r r t .
C i v i l S e r v i c e C o m m is s io n :
E m p lo y e e s * r e t i r e m e n t fu n d s (U * S *
sh a re )
**• •• #• •# ••
1,459
1 ,6 1 6
A 57
43,259
4 4,746
A , 487
23
15
39
17
43
20
11
62
114
¿52
488
619
a/ 21
- 498
a / 143
433
251
737
-6 3 1
-186
¿272
A 39
246
18
221
15
245
16
A4
48
84
84
84
A9
-15
A 34
-2 8 0
-473
471
568
602
938
516
154
716
235
833
190
¿117
-4 5
57
75
80
214
81
62
72
325
80
-8
A ll
¿18
a/ 20
152
102
1
-19
¿50
-276
-1 0 7
F e d e r a l S e c u r i t y A g en cy :
F e d e r a l W o rk s A g e n c y :
P u b l i c B u i l d i n g s A d m in i s t r a t i o n • • • • • • e e e e e e # e e * # e e e e
H o u s in g a n d Home F i n a n c e A g e n c y :
j
r*o TVipantm iTit
•
38
91
a/ 1
a/ 202
378
108
61
142
104
114
124
147
126
136
179
173
119
87
¿55
A6
-7
-4 9
2 ,1 2 4
663
25
276
¿25
-3 8 7
*
*
2 8 ,039
1 5 ,1 6 4
161
9,2 0 6
5,5 9 7
242
7 ,6 9 9
4,285
310
-1 ,5 0 7
-1 ,3 1 2
¿68
292
15
286
206
13
298
18
385
314
16
758
20
438
¿460
2 ,0 5 0
1 ,7 0 0
a j
I n t e r i o r D e p a r t m e n t:
20
a/ 2 7 5
M a r it im e C o m m is s io n :
L i q u i d a t i o n W ar S h i p p i n g A d m i n i s t r a t i o n o b l i g a t i o n s
£ J
N a tio n a l M i l i t a r y E s ta b lis h m e n t:
R a ilro a d
R e tir e m e n t B o a r d :
T r e a s u r y D e p a r t m e n t:
S u b s c r ip tio n s t o :
T o t a l b u d g e t e x p e n d itu re s (e x c lu d in g t r a n s f e r
t o F o r e i g n E c o n o m ic C o o p e r a t i o n T r u s t F u n d )
T r a n s f e r t o F o r e i g n E c o n o m ic C o o p e r a t i o n T r u s t Fu n d 2 /
T o t a l b u d g e t e x p e n d itu re s (in c lu d in g t r a n s f e r
t o F o r e i g n B c o n c m io C o o p e r a t i o n T r u s t F u n d )
B u d g e t s u r p lu s
(/ ) o r d e f i c i t
( - ) , ' e x c lu d in g t r a n s f e r
B u d g et s u r p lu s
(¿)
(-),
F o ie ig n Eo
or d e fic it
in c lu d in g t r a n s f e r t o
cpc
N o te : - F ig u r e s a r e ro u n d e d t o
to
1 ,2 6 8
5,2 1 1
2 ,3 2 6
642
1,3 8 1
2 ,8 7 1
144
817
6 ,4 4 2
298
153
6 ,3 1 7
659
-6 6 4
-125
¿361
6 3 ,714
42,505
3 6,326
-6 ,1 7 9
3 ,0 0 0
A , 000
-
-
-
4 2,505
3 9,326
-3 ,1 7 9
- 20 ,6 7 6
¿ 754
¿8 ,4 1 9
A , 665
- 2 0 ,6 7 6
/ 754
¿5 ,4 1 9
A , 665
n e a r e s t m i l l i o n and w i l l n o t n e c e s s a r i l y a d d t o
to ta ls *
E x c e s s o f c r e d i t s , d e d u ct*
1/
R e p r e s e n t s e x p e n d i t u r e s b y a l l a g e n c i e s r e c e i v i n g a l l o c a t i o n s o f f u n d s u n d e r t h e E c o n o m ic C o o p e r a t i o n A c t o f 1 9 4 8 *
E x p e n d i t u r e s o f d i e D e p a r tm e n t o f t h e A i r F a r c e a r e c u r r e n t l y b e i n g m ade f r o m A rm y a p p r o p r i a t i o n s p e n d in g t r a n s f e r o f f u n d s
2/
3/
**
p u r s u a n t t o t h e A c t o f J u l y 2 6, 1 9 4 7 *
,
' ,, .
. .
. . .
T h i s g i v e s e f f e c t t o s e c t i o n 1 1 4 v f ) o f t h e E c o n o m ic C o o p e r a t i o n A c t o f 1 9 4 3 , a p p r o ir e d A p r i l 3 , 1 9 4 8 , r e q u i r i n g t h a t t h e sum
o f $ 3 , 0 0 0 , 0 0 0 , 0 0 0 b e t r a n s f e r r e d t o a t r u s t f u n d e n t i t l e d " F o r e i g n E c o n o m ic C o o p e r a t i o n T r u s t F u n d ," a n d " c o n s i d e r e d a s
ex p en d ed d u r in g t h e f i s c a l y e a r 1 9 4 3 , f o r t h e p u r p o se o f r e p o r t in g g o v e r n m e n ta l e x p e n d it u r e s * "
The e f f e c t o f t h is i s to
c h a r g e t h e b u d g e t i n t h e f i s c a l y e a r 1 9 4 3 f o r e x p e n d i t u r e s t o b e m ade i n t h e f i s c a l y e a r 1 9 4 9 , w i t h c o n s e q u e n t e f f e c t o n
th e s u r p lu s o r d e f i c i t o f th o s e y e a r s *
*
L e s s th a n $ 5 0 0 ,0 0 0 *
A
6 3 ,7 1 4
a/
“
-3 5 0
-4 7 6
-950
53
-7 2 4
-313
4,7 2 2
3 ,0 3 4
• • •* •* ••• •* ••• ••
40
A
¿53
¿354
A4
476
950
4 ,9 5 8
3 ,0 5 0
955
159
V e te r a n s * A d m in is tr a tio n :
N a t i o n a l s e r v i c e l i f e i n s u r a n c e fu n d
A
103
69
134
322
465
O th e r
• ••*•••• e e * * e e * e * e » e e * *
A
¿3
a/ 544
440
5
1,312
C om m erce D e p a r t m e n t:
Home O w n ers * L o a n C o r p o r a t i o n
A,644
1 ,2 3 8
on
P r o d u c t i o n a ra i M a r k e t in g A d m i n i s t r a t i o n !
Commo d i t y C r e d i t C o r p o r a t i o n •«••••••••••#•••••••*
-7 2
4 3 ,038
B u d g et E x p e n d itu re s :
A g r i c u l t u r e D e p a r t m e n t:
Farm er*^ t Horn« Adnrl n t
A
A
> CO
D e d u c t:
¿ $1,423
¿443
A 52
80
A 77
Attachment No* 2
Composition of the Outstanding Public Debt
(In millions of dollars)
Issues
Feb. 28,
191*6
June 30,
19U7
June 30,
S17 0^2
$15,775
25,296
S,ll*2
119,323
$13,757
19^8
Change
2/28/1^6
6/30/1,7
to
to
6/30/1*8
6/30/U8
Public issues (interest-bearing);
Marketable obligations;
Certificates of indebtedness ••
Treasury notes .... .
Postal savings and other bonds.
Total marketable obligations.
Honmarketable obligations:
A f n r r i i c 1abta hnniia ......
'Pt'aaaut'v eor1n«>e Yirit.A« . . . . . . . .
United States savings bonds ...
Treasury bonds, investment
series .................. .
Depositary bonds ............
Total nonmarketable obli
gations •
Total public issues ........
Special issues to Government
trust funds and agencies ....
Matured debt on which interest
has epfififid ..................a.
Debt bearing no interest:
International Bank and Monetary
Pund ...............................
Other........ ............. •
Total gross public debt ....
Guaranteed debt
Not owned by the Treasury ••••••
Total public and guaranteed
debt
General fund balance..........
Total debt less general fund
bftlAnne
Note:
. . . . . . . . . . . . . .¿.»«a
-39.U6U
-$2,018
-2,708
+3,233
-6,861
-2
-8,356.
U.39U
53.27U
+563
-3.6U9
+U,582
-1,230
-1,166
+1,907
325
959
316
+959
-155
+959
—9
257.016
.59.0U5
227.7U7
59.506
a9,852
+2,300
-3 7 .16U
+1*61
-7,895
20,897
27.366
30.211
+9 .31 U
+2 .8U5
238
231
280
+1*2
+1*9
1.063
279 ,a U
2,1^0
802
258,286
1,227
722
252,292
+1,227
-31*1
- 26,922
551
90
73
-1*78
279.76U
25.961
258,376
3.308
252,366
. u .932
- 27.398
-a. 029
253.803
255,068
2k7,W
-6,369
-iüW
19.551
i a .635
180
199,210
22,588
11,375
166
168,702
112 ,1*62
l6i*
160 ,314-6
8 ,0^3
U8 ,692
1.793
5,560
51.367
U71
57.206
-$3,275
-18,825
-3,176
-9,173
-16
563
Figures are rounded and will not necessarily add to totals.
-913
-80
-5.991*-1 6
-6,oio
+1 .62U
-7.63U
Attachment No. 3
Disposition of Matured Marketable Securities,
Daring Fiscal Year 1948 1/
(In millions of dollars)
Disposition
Matured or called securities
Date of
loaturity
or call
Class
Hate of
interest
Amount
Payable
in cash
7/ 1/^7
Certificate
7/8*
$ 2,916
$174
8/
l/M-7
Certificate
7/3#
1,223
97
9/ 1/^7
Certificate
7/Sj&
2,341
9/l5/^7
9/15/^7
Note
Note
l-l/l#
1 - 1 / 2*
1,687
132
10 mo. 7/S# Cert.
2.209
12£ mo. 1# Note
2.707
17 5 )
128 )
7/8*
1,440
36
4-1/4#
759
759
303
10 /15 /1*7
Bond
1 1 / 1 /1*7
Certificate
7 / 8*
1,775
12 / 1 /U 7
12 /15 /1*7
Certificate
Bond
7/3*
2*
3.281
7OI
5$
l/4S
Certificate
7/8*
3 .I3I1
51*2
2/ 1/48
Certificate
7/3*
3.9^7
1 ,75s
3 / 1 /1.8
7 /8*
3/15/1*8
3/15/1«
Certificate
Bond
Bond
2,142
I.II 5
a-3/1**
V
l/4S
Certificate
7/8*
6/ 1/43
6/15/43
Certificate
Bond
7/8*
1-3/^*
Notes
11
$2,742
1,127
Certificate
Totals
1 yr. 7/8# Cert.
Amount
mo. 7/3# Cert.
10 / 1 /U7
1/
Exchanged
New security
«a
1
yr. 1# Cert.
(I. 5I 2
(2,5®)
1.35^
-
11 mo. 1# Cert.
1 ,1*67
mo. 1-1/3# Note
( 2,908
( 627
1 yr. l-l/S# Cert.
2.592
1
yr. l-l/S# Cert.
2,189
1 yr. 1-1 /S# Cert.
1,223
1*51*)
216 )
257)
( 1,687
( 899
( 967
1.3 2 1
266
1 yr. 1-1/8# Cert.
1,055
1 yr. l-l/S# Cert.
(1,618
( 2.68^
1,777
^.062_
36.551
13
159 )
179 )
6,336
30,215
Figures are rounded and will not necessarily add to totals.
1 J «phis table does not take into account a net reduction of $2,013,000,000
in the outstanding Treasury hills.
Press service
No. S-782
FOR RELEASE
Friday, July 9, 19M-8
Secretary of the Treasury Snyder today made public a series of
tabulations which will appear in the report "Statistics of Income for
1945, Part 2," compiled from corporation income and declared value
excess-profits tax returns, excess profits tax returns, and personal
holding company returns« These, data are prepared under the direction
of Commissioner of Internal Revenue George J. Schoeneman.
SUMMARY DATA
The number of corporation income and declared value excess-profits
tax returns for 1945 is 454,460, of which 503,019 show net income of
$22,165,206,239, while 118,106 show deficit of $1,026,249,663, and
33,335 have no income data (inactive corporations)»
The income tax liability reported on these returns is $4,182,705,011
and the declared value excess-profits tax is $55,039,143, while an
excess profits tax liability of $6,557,005,832 is reported on 52,097
corporation excess profits tax returns for the same period. Thus the
total amount of corporation income and excess profits taxes is
$10,794,749,986, representing a decrease of 27 percent as compared with
the total for 1944»' The amountsfof income tax and excess profits tax
liability do not take into account any credit claimed for income and
profits taxes paid to a foreign country or United States possession.
TREASURY DEPARTMENT
Washington
FOR RELEASE
Friday, July 9, 1948
Press Service
No. S-782
Secretary of the Treasury Snyder today made public a series of
tabulations which will appear in the report "Statistics of Income for
1945, Part 2," compiled from corporation income and declared value
excess-profits tax returns, excess profits tax returns, and personal
holding company returns * These, data are prepared under the direction
of Commissioner of Internal Revenue George J. Schoenemun.
SUMMARY DATA
The number of corporation income and declared value excess-profits
tax returns for 1945 is 454,460, of which 303,019 show net income of
$22,165,206,239, while 118,106 show deficit of $1,026,249,663, and
33,335 have no income data (inactive corporations)..
The income tax liability reported on these returns is $4,182,705,011
and the dsclared value excess—profits tax is $55,039,143, while an
excess profits tax liability of $6,557,005,832 is reported on 52,097
corporation excess profits tax returns for the same period» Thus the
total amount of corporation income and excess profits taxes is
$10,794,749,986, representinga decrease of 27 percent as compared with
the total for 1944« The amountsoof income tax and excess profits tax
liability do not take into account any credit claimed for income and
profits taxes paid to a foreign country or United States possession.
-2
A c o m p a r is o n o f t h e
th e
fo llo w in g
-
1945 r e tu r n s w ith
th e
1944 r e tu r n s
is
p r o v id e d i n
s u m m a ry*
C o r p o r a tio n
re tu rn s ,
(M o n e y f i g u r e s
l /
1945 and 1944s
in
th o u s a n d s o f
1945
‘ In c o m e a n d d e c l a r e d v a lu e
T o t a l n u m b e r o f in c o m e a n d
d e c la r e d v a lu e e x c e s s - p r o f it s
t a x r e t u r n s , F o rm 1 1 2 0
R e t u r n s w i t h n e t in c o m e s 2 /
N um ber
N e t in c o m e 2 /
Tax l i a b i l i t y :
In c o m e t a x
D e c la r e d v a l u e e x c e s s p r o f it s ta x
E xcess p r o f it s ta x 4 /
T o ta l
R e tu rn s w it h no n e t
in c o m e s 2 /
Num ber
D e f ic it 2 /
N um ber o f r e tu r n s o f
i n a c t i v e c o r p o r a t io n s
in c o m e 6 /
E xcess p r o f it s
F o r fo o tn o te s ,
s e e p p . 2§*=30
In c re a s e o r
d e c re a s e ( - )
Num ber o r
P e rc e n t
am ount
1944
ta x
re tu rn s
4 5 4 ,4 6 0
4 4 6 ,7 9 6
7 ,6 6 4
2
3 0 3 ,0 1 9
2 2 ,1 6 5 ,2 0 6
2 8 8 ,9 0 4
2 7 ,1 2 3 ,7 4 1
1 4 ,1 1 5
- 4 ,9 5 8 ,5 3 5
5
-1 8
4 ,1 8 2 ,7 0 5
4 ,3 5 3 ,6 2 0
- 1 7 0 ,9 1 5
-4
5 5 ,0 3 9
9 8 ,6 6 8
6 ,5 5 7 ,0 0 6
1 0 ,4 3 1 ,7 6 2
-4 3 ,6 2 9
-3 ,8 7 4 ,7 5 7
-4 4
-3 7
1 0 .7 9 4 .7 5 0
1 4 ,8 8 4 ,0 5 0
-4 ,0 8 9 ,3 0 0
-2 7
1 1 8 ,1 0 6
1 .0 2 6 ,2 5 0
1 2 3 ,5 6 3
8 1 9 ,2 6 0
- 5 ,4 5 7
2 0 6 ,9 8 9
3 3 ,3 3 5
3 4 ,3 2 9
-9 9 4
-3
-3 ,8 1 5
-6 ,3 0 6 ,2 8 5
-7
-3 1
-4 ,5 6 7 ,5 8 2
1 2 ,9 3 5 ,5 1 0
(S e e a b o v e )
-3 5
ta x
5 2 ,0 9 7
1 4 ,1 6 5 ,3 6 7
8 ,3 6 7 ,9 2 7
ta x
d o lla r s )
e x c e s s - p r o f it s
E xcess p r o f it s
T a x a b le e x c e s s p r o f i t s t a x
r e t u r n s , F o rm 1 1 2 1 s
N um ber
E x c e s s p r o f i t s n e t in c o m e 5 /
A d ju s te d e x c e s s p r o f i t s n e t
S u m m a ry d a t a
; h
-4
25
re tu rn s
5 5 ,9 1 2 '
2 0 ,4 7 1 ,6 5 2
3
RETURNS INCLUDED
The d a ta p re s e n te d i n
th e s e
ta b u la tio n s
a re
fro m
re tu rn s
fo r
t h e c a le n d a r y e a r e n d in g D e c e m b e r 3 1 , 1 9 4 5 , a f i s c a l y e a r e n d in g ^
w it h in th e p e r io d J u ly 1945 th ro u g h Ju ne 1 9 4 6 , a n d a p a r t y e a r w it h
th e g r e a t e r p o r t i o n o f th e a c c o u n tin g p e r io d i n 1945»
T h e d a t a a r e f r o m c o r p o r a t i o n in c o m e a n d d e c l a r e d v a l u e e x c e s s p r o f i t s t a x r e t u r n s , F o rm 1 1 2 0 ; l i f e in s u r a n c e c o m p a n y in c o m e t a x
r e t u r n s , F o rm 1 1 2 O L j m u t u a l i n s u r a n c e c o m p a n y in c o m e t a x r e t u r n s ,
F o rm 1 1 2 0 M ; a n d c o r p o r a t i o n e x c e s s p r o f i t s t a x r e t u r n s , F o r m 1 1 2 1 «
I n c l u d e d f o r t h i s p u r p o s e i n a d d i t i o n t o r e t u r n s f i l e d b y d o m e s t ic
c o r p o r a t io n s a re th e r e t u r n s f i l e d b y f o r e ig n c o r p o r a t io n s e n g ag ed
i n b u s in e s s w i t h i n t h e U n i t e d S t a t e s « A m e nd ed r e t u r n s a n d t e n t a t i v e
r e t u r n s a r e n o t i n c lu d e d »
T he c o m p le t e r e p o r t , S t a t i s t i c s o f In c o m e
f o r 1 9 4 5 , P a r t 2 , w i l l c o n t a i n m o re d e t a i l e d s t a t i s t i c s f r o m c o r p o r a
t i o n in c o m e a n d d e c l a r e d v a l u e e x c e s s - p r o f i t s t a x r e t u r n s a n d f r o m
c o r p o r a t io n e xce ss p r o f i t s t a x r e t u r n s , to g e th e r w i t h d a ta fro m
p e r s o n a l h o ld in g
co m p a n y r e t u r n s ,
F o rm 1120H «
T h e s t a t i s t i c s a r e c o m p ile d f r o m t h e r e t u r n s a s f i l e d , p r i o r
t o r e v i s i o n s t h a t m ay b e m ade a s a r e s u l t o f a u d i t b y t h e B u r e a u
o f I n t e r n a l R e v e n u e a n d p r i o r t o c h a n g e s w h ic h m ay r e s u l t f r o m
c a r r y —b a c k s , r e l i e f g r a n t e d u n d e r s e c t i o n 7 2 2 o f t h e I n t e r n a l
R e v e n u e C o d e , r e c o m p u t a t i o n o f a m o r t i z a t i o n o f e m e rg e n c y f a c i l i t i e s ,
o r f r o m t h e r e n e g o t i a t i o n o f w a r c o n t r a c t s , a f t e r t h e r e t u r n s w e re
file d «
C hanges r e s u lt in g fro m th e r e n e g o t ia t io n o f ' w a r c o n tr a c t s
a re re c o rd e d a s s e ttle m e n ts a r e re a c h e d , h o w e v e r, and th e e f f e c t
o f r e n e g o t ia t io n s e ttle m e n ts re a c h e d t o d a te w i t h r e s p e c t t o th e
t a x y e a r 1945 w i l l b e show n i n a s p e c ia l t a b u la t io n t o b e in c lu d e d
i n t h e c o m p le te r e p o r t , S t a t i s t i c s o f In c o m e f o r 1 9 4 5 , P a r t 2«
CHANGES IN LAW A FFEC TIN G CORPORATION RETURNS
T h e p r o v i s i o n s o f t h e I n t e r n a l R e v e n u e C ode a s a m e n d e d b y t h e
R e v e n u e A c t o f 1 9 4 3 c o n t i n u e i n e f f e c t f o r t h e c a le n d a r y e a r 1 9 4 5 ,
f o r a f i s c a l y e a r e n d in g i n t h e p e r i o d J u l y t h r o u g h N o v e m b e r 1 9 4 5 ,
a n d f o r a p a r t y e a r b e g in n i n g a n d e n d in g i n 1 9 4 5 «
I n t h e c a s e o f r e t u r n s f o r f i s c a l y e a r s e n d in g i n t h e p e r i o d
J a n u a r y t h r o u g h J u n e 1 9 4 6 , a n d r e t u r n s f o r p a r t y e a r s e n d in g i n
1 946 w i t h th e g r e a t e r p a r t o f th e a c c o u n tin g p e r io d f a l l i n g i n 1 9 4 5 ,
t
4
t h e t a x l i a b i l i t y i s a f f e c t e d b y c e r t a i n c h a n g e s i n la w i n t r o d u c e d b y t h e
R eve nu e A c t o f 1945»
The m o s t s i g n i f i c a n t c h a n g e s a r e a s f o l l o w s j
In c o m e a n d D e c l a r e d V a lu e E x c e s s - p r o f i t s
w ith
(1 )
1945*
S iz e
T h e re i s a d e c re a s e i n
a s s h o w n b e lo w s -
T ax R e tu rn s ,
th e
F o rm 1 1 2 0
s u rta x ra te s
o f s u r t a x n e t in c o m e
f o r 1 9 4 6 a s c o m p a re d
1946
1945
ra te
ra te
H o t o v e r $ 2 5 *0 0 0
O v e r $ 2 5 *0 0 0 b u t n o t o v e r $ 5 0 *0 0 0 $
F i r s t $ 2 5 ,0 0 0
N e x t $ 2 5 *0 0 0
6
10
6
ZZ
10
22
O v e r $50$000$
F i r s t $ 2 5 ,0 0 0
E xce ss o v e r $ 2 5 *0 0 0
14
14
16
16
i
(2 )
C o r p o r a tio n s f i l i n g r e t u r n s f o r t a x a b le y e a r s b e g in n in g i n
1 9 4 5 a n d e n d in g i n 1 9 4 6 a r e r e q u i r e d t o c o m p u te t w o t e n t a t i v e t a x e s *
one u n d e r th e p r o v is io n s a p p lic a b le to 1 9 4 5 , th e o th e r u n d e r th e p r o v i
s io n s a p p lic a b le to 1 9 4 6 * a n d p r o r a t e e a c h on th e b a s is o f th e num ber
o f d a y s b e fo r e J a n u a ry 1 * 1 946* a n d th e num ber o f d a y s a f t e r D ecem ber 5 1 *
1 94 5* r e s p e c tiv e ly »
T h e p r o r a t e d p o r t i o n s o f t h e tw o t e n t a t i v e t a x e s
a r e t h e n c o m b in e d t o d e t e r m in e t h e a c t u a l l i a b i l i t y * w h ic h i s t h e
a m o u n t t a b u l a t e d i n t h i s r e p o r t« .
A m o u n ts t a b u l a t e d f r o m t h e s e r e
t u r n s f o r a l l i t e m s o t h e r t h a n t h e t a x l i a b i l i t y a r e t h e a m o u n ts u s e d
i n c o m p u t in g t h e t e n t a t i v e t a x f o r 1 9 4 5 u n d e r p r o v i s i o n s o f t h e R e v e n u e
A c t o f 1945 o
•
(5 )
T h e c a p i t a l s t o c k t a x i s r e p e a le d * e f f e c t i v e w i t h
t a x a b l e y e a r s e n d in g a f t e r J u n e 5 0 * 1 9 4 5 ; t h e d e c l a r e d v a l u e e x c e s s p r o f i t s t a x i s r e p e a le d * e f f e c t i v e w i t h r e s p e c t t o t a x a b l e y e a r s e n d in g
a f t e r J u n e 5 0 * 1946«,
E xcess P r o f it s
(1 )
T a x R e t u r n s , F o rm 1 1 2 1
The c o r p o r a te e x c e s s p r o f i t s
ta x
is
r e p e a le d *
e ffe c tiv e
J a n u a r y 1 * 1946«,
(2 )
F o r f i s c a l y e a r s b e g i n n i n g i n 1 9 4 5 a n d e n d in g i n 1 9 4 6 * t h e
e x c e s s p r o f i t s t a x i s r e ta in e d f o r th e 1945 p o r t io n o f th e y e a r
th r o u g h th e p r o v is i o n t h a t th e e x c e s s p r o f i t s t a x s h a l l b e a n a m o un t
e q u a l t o t f i a t p o r t i o n o f a t e n t a t i v e t a x * c o m p u te d u n d e r p r o v i s i o n s
o f th e R evenue A c t o f 1945 a n d p r o r a te d on th e b a s is o f th e num be r
o f d a ys b e fo r e J a n u a ry 1 , 1946»
re s p e c t to
-
5 -
(3 )
F o r t a x a b l e y e a r s b e g i n n i n g i n 1 9 4 6 , t h e la w r e t a i n s t h e
u n u s e d e x c e s s p r o f i t s c r e d i t f o r t h e p u r p o s e o f t h e tw o y e a r c a r r y
b a c k t o 1944 a nd 1945»
No e x c e s s p r o f i t s t a x r e t u r n s a r e r e q u i r e d
t o b e f i l e d f o r s u c h t a x a b l e y e a r s b u t t h e p r o v i s i o n s o f la w r e l a
t i v e t o t h e c o m p u t a t io n o f e x c e s s p r o f i t s c r e d i t c o n t i n u e i n e f f e c t «
T h e re i s n o U nused e x c e s s p r o f i t s c r e d i t f o r a t a x a b le y e a r b e g in
n in g a f t e r D ecem ber 3 1 , 1946«
C LA S S IF IC A T IO N S PRESENTED
T h e f i r s t t h r e e t a b l e s o f t h i s r e l e a s e sh o w d a t a f r o m c o r p o r a
t i o n in c o m e a n d p r o f i t s t a x r e t u r n s , c l a s s i f i e d b y i n d u s t r i a l g r o u p s «
T h e i n d u s t r i a l c l a s s i f i c a t i o n i s b a s e d o n t h e b u s in e s s a c t i v i t y r e
p o r te d on th è re tu r n «
W hen m u l t i p l e b u s in e s s e s a r e r e p o r t e d o n a
r e t u r n , t h e c l a s s i f i c a t i o n i s d e t e r m in e d b y t h e b u s i n e s s a c t i v i t y
w h ic h a c c o u n t s f o r t h e l a r g e s t p e r c e n t a g e o f t o t a l r e c e i p t s «
T h e re
f o r e , th e i n d u s t r i a l g ro u p s do n o t r e f l e c t p u r e i n d u s t r y c l a s s i f i c a
tio n s «
T h e r e i s n o c h a n g e i n t h e i n d u s t r i a l , g r o u p s b e tw e e n 1 9 4 4 a n d
1945«
T a b le 4 sh o w s d a t a f r o m r e t u r n s w i t h b a la n c e s h e e t s , c l a s s i f i e d
a c c o r d in g t o s iz e o f t o t a l a s s e ts a s o f D ecem ber 3 1 , 1 9 4 5 , o r c lo s e
o f f i s c a l y e a r n e a re s t th e re to «
The t o t a l a s s e ts c la s s e s a r e b a s e d
on th e n e t am ount o f t o t a l a s s e ts a f t e r r e s e rv e s f o r d e p r e c ia t io n ,
d e p l e t i o n , a m o r t i z a t i o n , a n d b a d d e b ts «
T h e c l a s s i f i c a t i o n o f t h e r e t u r n s b y n e t in c o m e a n d d e f i c i t
c l a s s e s , sh o w n i n t a b l e 5 , a n d t h e c l a s s i f i c a t i o n b y r e t u r n s w i t h
n e t in c o m e a n d r e t u r n s w i t h n o n e t in c o m e , s h o w n i n t a b l e s 1 , 3 ,
a n d 5 , a r e b a s e d o n t h e a m o u n t r e p o r t e d f o r d e c la r e d v a lu e e x c e s s p r o f i t s t a x c o m p u ta tio n , a d ju s t e d b y e x c lu d in g th e n e t o p e r a t in g
l o s s d e d u c t i o n a n d a d d in g G o v e rn m e n t i n t e r e s t s u b j e c t t o s u r t a x
o n ly a n d e x c e s s o f n e t lo n g - t e r m c a p i t a l g a in o v e r n e t s h o r t - t e r m
c a p i t a l lo s s «
C R ED IT ALLOWED L IF E INSURANCE COMPANIES
I n a n a l y z i n g t h e d a t a c o m p ile d f r o m r e t u r n s c l a s s i f i e d u n d e r
t h e m a jo r g r o u p “ I n s u r a n c e c a r r i e r s , a g e n t s , e t c « , “ i t s h o u l d b e
n o t e d t h a t l i f e in s u r a n c e c o m p a n ie s a r e r e q u i r e d t o i n c l u d e o n l y
i n t e r e s t , d i v i d e n d s , a n d r e n t s i n g r o s s in c o m e «
B e g in n in g 1 9 4 2 ,
l i f e i n s u r a n c e c o m p a n ie s a r e a ll o w e d a “ r e s e r v e a n d o t h e r p o l i c y
l i a b i l i t y c r e d i t “ e q u a l t o a f l a t p r o p o r t i o n o f i n v e s t m e n t in c o m e
le s s ta x -e x e m p t in t e r e s t «
T h i s c r e d i t , w h ic h i s d e d u c t e d a f t e r
a r r i v i n g a t n e t in c o m e , a n d i s r e p o r t e d o n l y o n r e t u r n s w i t h n e t
in c o m e , t a k e s t h e p l a c e o f t h e d e d u c t i o n s f o r r e s e r v e e a r n i n g s ,
d e f e r r e d d i v i d e n d s , a n d i n t e r e s t p a i d , w h ic h f o r m e r l y w e r e a l l o w e d
i n c o m p u tin g n e t in c o m e «
F o r 1945 th e c r e d it r a t i o i s 0 *9 5 3 9 a nd f o r n o rm a l t a x p u rp o s e s
th e a g g re g a te a m o u n t o f r e s e r v e a n d o th e r p o l i c y l i a b i l i t y c r e d i t i s
$ 1 , 1 4 1 , 2 3 9 , 2 9 8 , o f w h ic h $ 1 , 1 4 0 , 2 7 1 , 6 2 5 i s r e p o r t e d o n r e t u r n s w i t h
b a la n c e s h e e t s *
A s a n o f f s e t t o t h i s c r e d i t , a d ju s t m e n t f o r c e r t a i n
n o n - l i f e in s u r a n c e r e s e r v e s i s r e p o r t e d i n t o t a l am ount o f $ 6 ,7 8 4 ,9 5 7
o f w h ic h $ 6 * 7 7 2 , 5 0 6 i s - r e p o r t e d o n r e t u r n s w i t h b a la n c e s h e e t s .
The
l a t t e r a d j u s t m e n t , w h ic h i s m ade i n o r d e r t o i n c l u d e i n t h e t a x b a s e
t h e i n t e r e s t r e c e iv e d o n n o n - l i f e in s u r a n c e r e s e r v e s , a p p lie s o n ly t o
l i f e i n s u r a n c e c o m p a n ie s d e r i v i n g a p o r t i o n o f t h e i r in c o m e f r o m c o n
t r a c t s o t h e r t h a n l i f e i n s u r a n c e , a n n u i t i e s , o r n o n e a n c e l la b l e h e a l t h
a n d a c c id e n t in s u r a n c e *
DATA PREVIOUSLY RELEASED
C e r t a i n t a b u l a t i o n s p r e p a r e d f r o m t h e 1 9 4 5 r e t u r n s w e r e m ade
p u b li c p r e v io u s ly i n a p r e lim in a r y r e le a s e d a te d M a rc h 2 5 , 1 9 4 8 ,
» (P re s s S e r v ic e N o* S -6 6 3 ) a n d a r e o m it t e d f r o m t h i s r e le a s e *
T a b le 1 - A o f t h e p r e l i m i n a r y r e l e a s e s h o w s b y m a jo r i n d u s t r i a l
g r o u p s t h e n u m b e r o f c o n s o l i d a t e d in c o m e t a x r e t u r n s f i l e d b y a f
f i l i a t e d c o r p o r a t i o n s , w i t h t h e c o r r e s p o n d i n g a m o u n t o f t o t a l com
p i l e d ' r e c e i p t s , n e t in c o m e , a d j u s t e d e x c e s s p r o f i t s n e t in c o m e ,
in c o m e t a x , d e c l a r e d v a lu e e x c e s s - p r o f i t s t a x , e x c e s s p r o f i t s t a x ,
a n d d iv id e n d s p a id *
I n t a b le 3 o f th e p r e lim in a r y r e le a s e , th e r e
i s s h o w n b y a d j u s t e d e x c e s s p r o f i t s n e t in c o m e c la s s e s a n d b y
m e th o d o f c r e d i t c o m p u t a t i o n t h e n u m b e r o f t a x a b l e c o r p o r a t i o n
e x c e s s p r o f i t s t a x r e t u r n s f o r 1 9 4 5 , w i t h th e c o r r e s p o n d in g a m o u n t
o f e x c e s s p r o f i t s n e t in c o m e , e x c e s s p r o f i t s c r e d i t , a d j u s t e d e x
c e s s p r o f i t s n e t in c o m e , a n d e x c e s s p r o f i t s t a x *
Table 1. - Corporation income and declared value excess-profits tax returns, 1/ 1945, by major industrial groups and minor industrial groups, for returns with net income and returns with
no net incomer Number of returns, total compiled receipts, net income or deficit, and dividends paid in cash and assets other than own stookf also, for returns with net income; Total
tax, income tax, declared value excess-profits tax, excess profits tax, and adjusted excess profits net income
(Money figures in thousands of dollars)
Major industrial groups and minor
industrial groups 7/
Total
number
Number
of re
of
turns 8/ returns
Total
compiled Net
re
income Zj
ceipts 9/
1 All industrial groups
454,460 303,019 259,045,611 22,165,206
2 Mining and quarrying
9,144
5,694
3,552,021
299,656
5
Metal mining
1,626
662,804
205
79,265
4
Iron
94
54
175,916
12,258
5
Copper
93
17
205,682
27,455
6
Lead and zinc
207
56
16,120
155,567
7
Gold and silver
764
59
20,515
4,549
8
Other metal mining
146
55,099
13,754
24
9
Metal mining not allocable
56,026
322
55
5,351
10
Anthracite mining
518,166
155
10,264
85
11
Bituminous coal, lignite, peat, etc.
1,693
1,547,600
81,412
915
12
Crude petroleum and natural gas production
85,887
3,559
1,722
699,821
15
Crude petroleum, natural gas, and natural gasoline
488,074
65,894
5,079
1,482
production
14
Field service operations
211,747
480
240
19,993
15
Nonmetallic mining and quarrying
1,384
42,250
745
316,873
16
Stone, sand, and gravel
1,054
192,401
18,296
604
17
310
156
124,142
Other nonmetallic mining and quarrying
25,925
18
20
330
29
Nonmetallic mining and quarrying not allocable
3
19
727
6,757
578
Mining and quarrying not allocable
2*
20 Manufacturing
82,189 61,680 133,402,830 10,576,548
21
Food and kindred products
9,039
7,081 18,505,256 1,010,275
1,684,441
124,570
22
1,388
Bakery products
1,155
852,890
107,950
25
Confectionery
492
434
24
1,286
Canning fruits, vegetables, and sea foods
1,773,474
142,791
981
25
84,565
Meat products
881
642
5,542,219
26
Grain mill products, except cereal preparations
1,006
824
2,700,169
114,458
27
Cereal preparations
55,075
39
51
587,645
28
Dairy products
159,521
2,682,955
1,725
1,288
29
781,046
51,097
Sugar
127
105
50
143,206
Other food, including ice and flavoring syrups
1,742
1,575
1,452,285
51
266
47,464
Food and kindred products not allocable
666,132
555
52
Beverages
2,772
2,082
4,272,086
418,168
33
Malt liquors and- malt
200,267
474
434
1,956,156
34
Distilled, rectified, and blended liquors
550
147
1,755,860
142,175
35
Vine
11,786
112,628
152
95
56
Nonalcoholic beverages
61,687
1,783
1,585
446,064
57
Beverages not allocable
21,578
2,255
55
21
58
Tobacco manufactures
219
2,224,005
140,851
178
59
Cotton manufactures
766
282,219
852
2,781,959
40
Textile-mill products, except cotton
4,806,155
454,144
3,678
5,141
41
Woolen and worsted manufactures, including
1,364,894
152,277
525
472
dyeing and finishing
42
586
761,520
Rayon and silk manufactures
422
67,952
43
1,030,192
102,610
Knit goods
1,059
1,185
44
162
153,615
■ 9,955
Hats, except doth and millinery
195
272,556
17,866
45
Carpets and other floor coverings
124
87
46
475,970
411
58,604
Dyeing and finishing textiles, except woolen
509
and worsted
47
422,029
57,512
378
Other textile-mill products
455
48
206
525,597
27,588
Textile-mill products, except cotton, not allocable
265
49
5,862,214
245,855
7,797
6,460
Apparel and products made from fabrics
so
85,152
1,256,728
Men's clothing
1,584
1,569
85,974
51
1,468,778
5,267
2,779
Women's clothing
52
5,309
125,794
Fur garments and accessories
643
458
Millinery
2,651
55
554
70,099
297
55,546
54
755,789
Other apparel and products made from fabrics
1,528
1,251
17,440
225,026
55
421
526
Apparel and products made from fabrics
not allocable
56
137,064
1,769
Leather and products
2,108
2,142,515
57
527,877
57,518
Leather, tanned, curried, and finished
558
285
1,500,216
77,574
58
970
826
Footwear, except rubber
20,526
59
760
650
297,184
Other leather products
1,646
60
40
50
17,258
Leather and products not allocable
For footnotes, see pp. 29-50,
Adjusted
excess
profits
Total tax
net
income 10/
Taxes
Declared
Excess
value
Income
excess- profits
tax 5/
profits tax 4/
tax
Returns with no net income 2/
Dividends
Total
Dividends
paid in
Number compiled
paid in
Deficit 2/ cash and
of
re
cash and
assets
returns ceipts 9/
assets
other than
other than
own stock
own stock
8,308,740 10,794,750 4,182,705
38,579
118,368
86,528
26,302
24,113
2,498
1,502
4,816
3,523
470
8,909
8,493
26
5,278
5,255
1,654
1,290
402
4,066
77
4,135
1,513
1,488
21
2,944
895
5,551
15,578
24,545
35,615
31,296
8,494
24,481
18,957
5,916
22,154
55,039 6,557,006
51,495
545
2,156
54
9
1,284
14
402
3
22
20
544
66
1
7
18
596
10
92
10,975
6,757
78
56
5,181
5,917,615 118,106 16,402,141 1,026,250
601,662
57,268
3,602
146,522
10,282
77,655
643
.51,052
926
55,678
40
6,775
1,602
56
8,903
17,733
729
86
6,308
12,956
12,402
2,693
300
■ 3,300
7,120
1,798
6,011
77
2,535
104
7,243
4,297
1,966
55,612
6,454
63
196,776
10,U 9
26,461
629
26,753
1,587
224,559
44,483
195,442
25,265
42,018
1,411
5,545
9,142
10,266
21,574
7,814
5,115
5,148
13,554
5
5
179
235
1,947,769
6,112,228
222,832
556,289
72,880
24,659
18,780
65,925
76,572
31,867
22,074
41,012
62,692
26,165
18,886
9,293
26,949
99,454
21,160
15,648
56,561
71,558
26,170
11,055
255,779 •' 75,984
37,557
125,755
95,418
16,884
2,559
7,089
16,923
28,048
281
1,492
49,517
60,181
180,479
41,634
81,775
272,285
19,759
85,591
5,556
41
10,997
111
86
2,615
8,582
25
54
(14)
30,106 4,154,352
4,111
329,545
154
48,067
46,780
365
45,842
863
393
18,545
54,879
1,647
9
9,583
72,193
512
5,459
73
172
35,005
15,012
122
179,7S7
2,058
86,077
298
1,520
77,013
125
4,425
90
11,055
1,206
5
20
10,845
138,550
495
189,035
1,475
65,499
555
2,466
17,846
4,282
13,561
3
225
2,758,522
260,056
50,802
24,650
26,506
27,224
16,221
11,016
50,217
25,972
53,375
14,092
75,855
57,256
19,195
1,696
17,672
54
65,483
59,264
80,987
18,814
176
520
385
127
8
160
17,452
1,647
222
48
247
217
159
5
358
21
526
64
509
20
60
52
570
7
52
58
458
44
29,U7
48,230
37,500
10,092
639
850
7,881,135
955,350
39,831
4,779
94,511
588,540
55,030
17
76,244
57,742
45,749
12,905
165,861
25,5S7
63,384
45,714
28,777
428
5,754
51,076
72,254
9,572
1,487
6,770
4,050
2,651
69
1,579
326,351
23,794
846
189
4,464
9,328
1,297
6
907
2,089
4,073
595
9,323
481
3,136
4,346
1,526
54
206
4,457
5,162
275
5
166
117
49
8
66,411
2,016
57
8
147
1,408
39
—
IS
28
303
53
746
88
593
58
8
25
259
789
7
4,578
13,050
3,163
9,887
65
5,251,670
440,272
59,527
62,558
65,603
25,046
59,048
13,702
87,241
6,920
42,671
19,977
230,495
106,937
100,865
7,755
13,298
1,642
13,268
175,962
245,737
82,550
179,777
13,295
1,050
200
39
140
248
423
43
2,871
9,1S7
9,151
1
2
5
4
5
6
7
8
9
10
11
12
15
14
15
16
17
18
19
20
21
22
25
24
25
26
27
28
29
50
51
52
55
54
55
56
57
58
39
40
41
42
45
44
45
46
35,567
54,508
5,586
5,602
56,042
58,752
60,576
S,526
8,182
55,966
13,519
19,022
2,504
5,226
9,717
198
406
42
69
271
25,215
40,948
2,980
2,888
25,978
15,520
15,664
2,037
7,752
10,474
27
108
50
51
88
3,U6
15,576
4,259
7,U3
11,304
155
6U
112
161
494
122
2
9
70
16,863
15,239
127,516
37,496
48,585
351
657
50,554
10,114
21,585
16,726
139,155
46,106
48,608
1,055
1,057
51,566
10,741
7,532
4,917
41,710
16,510
13,595
803
557
7,976
2,469
99
57
1,688
495
758
19
15
573
50
15,755
11,772
95,755
29,101
54,475
255
487
23,217
8,222
8,511
4,217
25,976
12,189
5,235
175
253
6,293
1,851
68
42
1,166
195
400198
52
245
78
15,876
9,840
116,185
27,666
52,045
21,152
3,455
21,847
10,062
715
640
4,157
1,015
1,278
552
97
966
271
41
537
140
14
92
11
(14)
9
15
47
48
49
50
62,518
16,597
54,736
10,556
650
77,574
20,974
44,009
11,540
851
28,571
8,485
15,966
.3,555
385
664
126
420
116
2
48,559
12,563
27,625
7,889
464
26,999
7,601
17,161
1,813
425
290
48
117
US
7
48,870
9,044
25,901
12,822
1,102
1,559
446
702
599
12
178
87
77
14
*
56
57
58
59
60
SI
52
55
54
55
Table 1, — Corporation income and declared value excess—profits tax returns, l/ 1945, by major industrial groups and minor industrial groups, for returns with net income and returns with
no net income: Number of returns, total compiled receipts, net income or deficit, and dividends paid in cash and assets other than own stock; also, for returns with net income: Total
tax, income tax, declared value excess-profits tax, excess profits tax, and adjusted excess profits net income — Continued
Major industrial groups and minor
industrial groups if— Continued
61
62
65
64
65
66
67
68
69
70
71
72
75
74
75
76
77
78
79
80
81
82
85
84
85
86
87
88
89
90
91
92
95
94
95
96
97
98
99
100
101
102
105
104
105
106
107
108
109
UO
m
112
H5
114
115
U6
U7
118
119
120
121
Total
Number
number
of re
Of
turns 8/ returns
Manufacturing — Continued
475
Rubber products
59
Tires and inner tubes
456
Other rubber products, including rubberized
fabrics and clothing
2,456
Lumber and timber basic product*
1,608
Logging camps and sawmills
828
Planing mills
5,999
Furniture and finished lumber products
1,797
Furniture (wood and metal)
572
Partitions and fixtures
517
Wooden containers
14
Matches
1,155
Other finished lumber products, including cork
products
144
Furniture and finished lumber products not allocabl I
2,126
Paper and allied products
442
. Pulp, paper, and paperboard
1,671
Pulp goods and converted paper products
15
Paper and allied products not allocable
10,557
Printing and publishing industries
2,586
Newspapers
1,056
Periodicals
812
Books and music
5,055
Commercial printing
1,592
Other printing and publishing
1,678
Printing and publishing industries not allocable
6,476
Chemicals and allied products
857
Paints, varnishes, and colors
195
Soap and glycerin
>
2,450
Drugs, toilet preparations, etc.
6
Rayon (raw material) and allied products
268
Fertilizers
257
Oils, nrUmal and vegetable, except lubricants and
cooking oils
138
Plastic materials
648
Industrial chemicals
1,053
Other chemical products
666
Chemicals and allied products not allocable
482
Petroleum and coal products
510
Petroleum refining
166
Other petroleum and coal products
6
Petroleum and coal products not allocable
2,875
Stone, clay, and glass products
324
Cut-stone products
Structural clay products
645
Pottery and porcelain products
226
456
Glass and glass products
Cement
89
Concrete and gypsum products, wallboard
710
Abrasives and asbestos products
385
Stone, clay, and glass products not allocable
60
Iron, steel, and products
6,719
Blast furnaces and rolling mills
121
Structural steel, fabricated; ornamental metal work
798
Tin cans and other tinware
72
Hand tools, cutlery, and hardware
717
Heating apparatus, except electrical, and
1,069
plumbers' supplies
Firearms, guns, howitzers, mortars, and
72
related equipment
Ammunition
127
Tanks
13
Sighting and fire-control equipment (except optical)
28
Ordnance and accessories, not elsewhere classified
48
Other iron, steel, and products (not classified
3,256
Iron, steel, and products not allocable
For footnotes, see pp. 29-50.
598
Total
compiled Net
income 2/
re
ceipts 9/
Returns with net income 2/.
Taxes
Adjusted
* Dividends
Number
paid in
Declared Excess
Income
excess
Total tax
of
cash and
profits
tax ij
value
profits
returns
assets
excess- tax 4/
net
other
than
profits
income 10/
own stock
tax
Total
compiled
re
Déficit £/
ceipts 9/
Dividends
paid in
cash and
assets
other than
own stock
361
50
331
3,299,988
2,734,798
565,189
248,125
190,775
57,351
171,316
132,469
58,847
169,987
152,631
57,556
30,291
23,535
6,957
535
141
394
139,161
109,156
30,005
39,168
33,473
5,695
92
5
87
61,070
33,283
27,787
1,775
440
1,535
568
304
263
61
62
65
1,607
968
639
3,102
1,468
284
395
12
841
1,522,905
939,086
383,819
1,869,506
857,750
99,589
263,902
77,373
501,791
123,754
94,069
29,685
142,009
69,735
5,536
17,092
8,554
35,444
29,712
16,615
13,097
56,131
30,687
1,795
6,427
3,595
11,021
52,923
37,614
15,309
74,721
38,266
2,623
8,654
4,915
17,155
30,362
24,050
6,331
30,295
13,926
1,149
3,579
1,990
8,600
205
88
117
562
522
18
34
4
169
22,357
13,496
8,861
43,864
24,018
1,456
5,041
2,921
8,384
38,882
33,535
5,547
23,446
9,984
579
3,398
757
8,258
728
562
166
815
286
79
113
2
296
152,481
123,520
28,961
137,008
69,673
5,341
28,313
1,614
28,731
8,318
6,893
1,426
7,458
3,771
523
1,225
51
1,640
1,308
1,180
128
466
152
39
74
64
65
102
1,848
582
1,457
9
8,021
1,890
750
542
2,493
1,186
1,160
4,414
703
133
1,465
4
223
187
69,101
3,510,239
1,971,031
1,534,161
5,047
3,744,226
1,251,793
626,850
568,849
891,478
289,112
316,164
9,359,557
1,040,276
759,782
1,373,525
55,070
310,388
765,675
5,648
545,350
186,958
157,989
403
590,971
254,929
125,914
47,969
100,020
31,428
32,711
1,059,701
63,483
58,755
231,013
6,260
24,988
38,541
2,608
158,505
69,519
88,961
25
319,227
136,022
82,557
23,644
49,889
15,609
13,507
413,926
22,707
10,720
109,566
1,420
8,716
20,462
3,109
197,707
100,364
97,180
162
552,100
155,187
79,944
27,041
56,200
16,742
16,986
563,268
35,670
27,537
133,025
3,148
12,290
23,127
1,051
69,596
45,658
25,798
141
97,830
£5,149
15,637
9,005
17,757
5,651
6,651
225,502
14,982
18,602
45,462
1,934
6,574
6,893
14
365
136
228
(14)
1,862
516
119
275
585
192
174
1,249
178
26
267
70
46
2,044
127,745
56,570
71,154
21
252,409
111,522
64,188
,17,760
37,858
10,918
10,162
536,517
18,509
8,909
87,296
1,214
5,846
16,188
490
77,119
52,083
24,915
121
101,558
49,818
17,114
9,747
14,608
5,394
4,877
374,722
17,849
19,406
59,181
5,003
6,689
5,959
39
259
47
i 190
2
2,055
463
249
226
504
187
407
1,772
108
51
817
2
33
44
*5,355
74,019
52,348
21,671
(14)
101,050
28,040
17,184
12,335
18,571
8,860
16,060
550,655
13, 327
3,653
115,627
155,768
3,185
45,387
251
3,073
1,976
1,094
3
6,825
1,824
1,546
838
826
384
1,406
28,736
531
147
6,880
8,606
262
896
2
340
117
225
—
564
46
398
22
42
28
27
8,236
27
67
357
6,611
1
75
74
75
76
77
78
79
80
81
477
721
420
511
198
110
3
1,952
252
367
181
540
59
467
272
34
5,068
95
654
55
526
764
* 168,327
3,549,770
519,906
816,841
9,617,216
9,126,487
489,149
1,579
2,201,944
41,376
214,775
183,185
729,451
166,539
247,090
605,113
14,419
Vf,101,284
5,817,444
614,899
551,926
558,452
1,542,691
20,432
470,330
45,020
100,901
370,575
351,459
18,931
185
224,032
4,094
18,988
17,482
87,276
20,988
20,190
54,255
758
1,290,452
179,170
64,836
39,188
72,080
131,648
15,024
155,479
21,579
50,253
13,014
8,719
4,187
107
82,084
1,014
2,546
7,833
42,966
1,616
3,895
22,209
6
724,556
44,267
43,522
2,612
38,164
70,303
13,153
231,486
25,912
59,920
108,896
99,735
9,037
123
119,577
1,844
7,490
9,850
51,616
8,679
9,095
30,750
254
787,475
. 87,204
41,471
15,603
42,820
79,272
2,821
100,490
8,604
19,540
98,260
92,567
5,664
29
52,857
979
5,323
3,456
17,545
7,591
5,805
11,939
239
212,072
51,250
7,543
15,424
12,645
22,169
30
458
78
96
115
55
59
2
529
16
72
79
176
85
51
45
10
5,967
208
523
28
84
407
10,502
130;538
17,230
40,484
10,521
7,114
3,315
92
66,192
849
2,096
6,335
33,895
1,006
3,258
18,768
5
571,455
55,747
33,805
2,151
30,092
56,696
4,271
226,551
9,861
21,953
346,497
337,741
8,711
45
61,052
706
4,914
2,435
20,249
10,674
6,167
15,597
512
296,073
109,253
5,733
14,577
16,590
24,791
51
161
298
207
131
89
39
3
818
82
256
58
83
29
215
95
22
1,458
22
132
15
168
254
4,867
145,347
20,670
48,825
767,502
744,663
22,826
13
141,887
3,117
36,545
6,267
23,477
22,293
21,757
21,005
7,427
1,432,797
662,177
29,669
1,665
73,770
100,382
651
7,166
1,413
2,205
19,193
18,740
447
6
12,958
483
4,173
515
1,330
5,445
1,314
1,442
237
49,029
12,013
2,552
98
3,354
4,450
574
71
549
14,074
14,058
16
92
95
94
95
96
97
98
99
1,454
100
101
198
-
-
«•
-
66
67
68
69
70
,71
72
81
82
85
84
85
86
87
88
89
90
91
101
24
7
974
86
91
171
19,842
11,532
81
105
104
105
106
107
108
109
1,102
548
115
114
-
102
UO
111
112
55
489,842
47,750
34,692
52,657
4,958
504
27,195
5,116
19
133,527
5,798
5,033
115
111
10
21
52
2,455
1,846,521
603,466
575,991
99,647
3,582,191
185,795
56,396
45,018
7,626
345,142
135,965
45,005
19,629
5,721
199,465
125,710
40,856
25,192
5,197
212,737
19,278
4,468
8,764
799
54,556
696
195
2
4
1,516
105,736
56,194
16,427
4,394
156,866
24,391
7,878
15,588
565
55,927
16
5
7
16
736
55,587
894
4,581
12,104
274,465
1,151
18
262
493
14,656
1,184
74
108
1,408
116
117
118
119
512
1,218,215
117,804
135,414
78,753
12,420
200
66,133
15,864
72
86,179
6,185
775
-
120
121
Table 1. - Corporation Income and declared value excess-profits tax returns, 1/ 1945, by major industrial groups and minor industrial groups, for returns with net income and returns with
no net income: Number of returns, total compiled receipts, net,income or deficit, and dividends paid in cash and assets other than own stock; also, for returns with net income: Total
tax, income tax, declared value excess-profits tax, excess profits tax, and adjusted excess profits net income - Continued
Major industrial groups and minor
industrial groups 7/ - Continued
122
123
124
125
126
127
128
129
130
131
152
133
134
135
136
137
138
159
140
141
142
143
144
145
146
147
148
149
150
151
152
155
154
155
156
157
158
159
160
161
162
168
164
165
166
167
168
169
170
Total
number
Number
of re
of
turns 8/ returns
Manufacturing - Continued
Nonferrous metals and their product*
2,518
Nonferrous metal basic products
277
72
Clocks and watches
625
Jewelry (except costume), silverware, plated ware
Other manufactures of nonferrous metals and
1,524
their alloys
20
Nonferrous metals and products not allocable
1,942
Electrical machinery and equipment
704
Electrical equipment for public utility, menufactu!ring, mining, transportation (except automotive), and construction use
86
Automotive electrical equipment
Communication equipment and phonographs
497
Electrical appliances
165
271
Other electrical machinery and equipment
Electrical machinery and equipment not allocable
221
6,387
Machinery, except transportation equipment and
electrical
Special industry machinery
1,040
General industry machinery
1,903
1,607
Metal-working machinery, including machine tools
86
Engines and turbines
Construction and mining machinery
875
Agricultural machinery
295
Office and store machines
,
189
Household and service-industry machines
339
Machinery, except transportation equipment and
553
electrical, not allocable
646
Automobiles and equipment, except electrical
Automobiles and trucks (including bodies and
295
industrial trailers)
541
Automobile accessories, parts (except electrical),
and passenger trailers
Automobiles and equipment, except electrical,
10
not allocable
Transportation equipment, except automobiles
1,157
Railroad and railway equipment
87
Aircraft and parts
431
Ship and boat building
590
Motorcycles and bicycles
20
Other transportation equipment, except
22
automobiles
Transportation equipment, except automobiles,
7
not alloeable
Other manufacturing
4,119
Manufacturing not allooable
5,050
Public utilities
a, 137
Transportation
14,132
Railroads, switching, terminal, and passenger
701
car service companies
Railway express companies
2
Railways, street, suburban, and interurban,
154
including bus lines operated in conjunction
therewith
Taxicab companies
673
Other highway passenger transportation
1,816
Highway freight transportation, warehousing,
7,228
Air transportation and allied services
Pipe line transportation
Water transportation
Services incidental to transportation
Transportation not allooable
For footnotes, see pp, 29-50.
554
160
1,295
1,372
199
(Money figures in thousands of dollars)
Returns with net income 2/
Adjusted
Taxes
excess
Total tax
Income
Declared Excess
profits
tax 3/
value
profits
net
excess- tax 4/
income 10/
profits
tax
Total
Net
compiled income 2/
re
ceipts 9/
Returns with ro net income 2/
Dividends Number Total
Dividends
compiled Deficit 2/ paid in
of
paid in
returns re
cash and
cash and
assets
ceipts 9/
assets
other than
other than
own stock
own stock
1,855
209
51
510
1,071
3,866,944
1.485,732
171,517
360,446
1,505,677
276,312
101,833
22,925
36,157
103,096
110,203
27,151
13,543
22,532
46,670
143,928
47,933
13,700
21,835
58,636
58,469
25,815
4,077
5,620
21,395
1,009
46
70
352
542
84,450
22,072
9,555
15,863
36,699
103,9a
46,726
4,870
3,954
26,468
587
55
16
101
408
128,285
30,728
3,045
5,999
88,252
8,190
1,547
165
292
6,149
7
279
123
124
125
126
12
1,345
526
343,572
6,678,548
2,767,656
12,314
619,199
304,187
307
572,694
184,704
1,824
595,338
198,283
1,561
90,272
44,314
798
194
263
504,267
153,775
21,903
143,640
77,290
7
526
169
261
445,441
106,919
37
24,938
6,227
i,6a
168
127
128
129
60
322
106
188
143
4,536
238,853
2,165,082
115,732
420,269
970,956
9,297,767
30,227
170,223
15,467
34,865
66,229
966,618
18,351
110,271
7,515
22,186
29,667
547,453
19,719
109,129
8,069
22,170
37,966
599,375
4,283
20,852
2,431
4,804
13,589
158,450
14
286
98
82
124
3,125
15,422
87,992
5,541
17,284
24,253
437,820
6,558
29,802
1,994
6,724
21,273
189,104
22
155
47
74
61
1,656
16,772
266,582
7,599
14,443
53,126
583,081
670
14,501
681
1,058
1,802
38,384
1
900
•
1
552
3,995
130
131
132
133
134
135
762
1,311
1,115
66
296
222
122
238
404
747,424
2,135,658
1,564,917
769,927
979,265
1,671,837
378,474
344,943
705,322
80,521
225, 568
188,575
84,886
109,585
113,609
57,569
34,592
71,912
35,945
143,491
113,017
68,473
64,067
31,084
31,413
14,366
45,597
44,249
146,215
119,828
59.876
68,624
57,878
36,799
19,028
46,877
15,679
30,800
28,897
6,294
17,659
31,864
10,106
7,389
9,742
344
866
525
387
365
208
66
109
255
28,226
114,549
90,406
55,195
50,600
25,806
26,627
11,531
36,880
21,441
36,921
29,157
8,805
20,285
40,934
15,424
5,516
10,639
253
528
468
19
69
60
54
80
125
88,155
154,974
126,211
9,893
44,758
15,776
11,422
11,545
120,369
7,733
10,201
10,524
1,832
1,270
1,012
981
549
4,282
855
787
1,218
157
25
19
456
15
461
136
137
138
139
140
141
142
145
144
501
238
1,955,981
1,029,026
184,623
82,177
127,053
56,424
123,077
54,207
22,232
9,769
467
259
100,379
44,179
20,256
6,583
119
43
1,133,334
1,074,964
14,470
10,765
4,879
4,645
145
146
256
925,236
102,315
70,575
68,807
12,445
208
56,154
15,870
74
58,336
3,705
234
147
7
1,719
151
53
63
18
mm
46
3
2
34
759
65
282
357
15
19
16,734,426
879,279
12,802,510
5,010,807
36,466
5,175
1,051,356
90,976
763,184
193,818
2,901
472
622,584
49,575
423,906
148,069
909
125
650,499
57,428
^60,390
130,947
1,518
215
161,874
15,8a
127,632
17,464
826
150
3,142
143
2,621
364
15
(14)
485,483
41,464
330,137
113,120
677
85
292,015
39,227
223,317
28,574
768
129
365
20
122
210
5
2
501,662
21,052
119,210
356,378
4,494
6
1,461
154
395
912
•
*
149
150
151
152
153
154
1
188
6
1
1
2,853
1,692
12,966
8,610
345
2,628,897
1,621,234
19,672,756
11,984,273
7,884,002
261,045
135,852
3,135,895
1,459,866
954,459
138,87468,568
985,675
576,399
391,085
154,139
77,700
1,547,605
799,426
536,861
45,681
24,122
719,644
320,058
207,803
1,081
606
2,545
2,124
430
1
85
442,848
422,266
6
45,014
10,870
1
a, 988
1
12,912
448
1,282
4,557
142,053
686,032
886,643
13,477
161,510
62,383
7,630
104,164
10,981
7,928
102,325
24,406
128
96
744
861
83
315,765
199,713
615,848
556,187
52,936
36,338
43,218
93,467
45,755
4,238
7,429
4,532
22,920
14,780
2,206
17,647
18,530
43,914
25,497
2,528
493
207
(14)
34,766
1,059
13,164
19,781
726
12
122
148
,_
4
522
24
107,377
52,972
825,619
477,244
328,628
49,828
26,445
1,206,409
345,229
246,074
1,098
854
6,770
4,586
260
122,440
157,111
2,990,595
2,621,876
1,782,671
8,651
12,929
196,818
147,524
96,988
1,563
1,395
36,565
24,456
21,203
156
157
158
159
160
(14)
2
9,074
mm
9,249
1
37
1
208,912
2
16,378
•
602
161
162
1,831
19,246
15,520
42
145
225
6,055
82,936
8,664
923
25,759
11,463
185
474
2,361
11,696
40,510
375,436
595
2,600
15,905
104
58
350
165
164
165
10,632
15,222
25,076
11,089
727
1,028
5
143
106
5
5,988
5,105
18,695
12,502
1,796
5,313
10,518
21,692
13,863
576
309
44
433
429
50
17,610
23,625
80,203
78,512
4,701
2,794
1,230
4,360
6,472
200
6
100
1,448
534
32
166
167
168
169
170
155
Table 1. - Corporation inc^u« and declared value excess-profits tax returns, 1/ 1945, by major industrial groups and minor industrial groups, for returns with net income and returns with
no net incomer Number of returns, total compiled receipts, net income or deficit, and dividends paid in cash and assets other than own stocky also, for returns with net income: Total
tax, income tax, declared value excess-profits tax, excess profits tax, and adjusted excess profits net income - Continued
Major industrial groups and minor
industrial groups 7/ - Continued
Public utilities - Continued
171
Communication
172
Telephone (wire and radio)
175
Telegraph (wire and radio) and'cable
174
Radio broadcasting and television
Other communication
175
176
Other public utilities
177
Electric light and power
178
Gas, distribution and manufacture
179
Water
180
Public utilities not elsewhere classified
181
Other public utilities not allocable
182 Trade
185
Wholesale
184
Commission merchants
Other wholesalers
185
186
Food, including market milk dealers
187
Alcoholic beverages
Apparel and dry goods
188
189
Chemicals, paints, and drugs
190
Hardware, electrical goods, plumbing and
heating equipment
Lumber and millwork
191
192
Wholesalers not elsewhere classified
195
Wholesalers not allocable
Retail
194
195
General merchandise
196
Department, dry goods, other general
merchandise
197
Limited-price variety stores
198
Mail-order houses
199
Food stores, Including market milk dealers
200
Package liquor stores
201
Drug stores
202
Apparel and accessories
205
Furniture and house furnishings
204
Eating and drinking places
205
Automotive dealers
206
Automobiles and trucks
207
Accessories, parts, etc.
208
Filling stations
209
Hardware
210
Building materials, fuel, and ice
211
Other retail trade
212
Retail trade not allocable
215
Trade not allocable
214 Service
215
Hotels and other lodging places
216
Personal service
217
Laundries, cleaners, and dyers
218
Photographic studios
219
Other personal service
220
Personal service not allocable
221
Business service
222
Advertising
225
Other business service
224
Business service not allocable
225
Automotive repair services and garages
226
Miscellaneous repair services, hand trades
227
Motion pictures
228
Motion-picture production
229
Motion-picture theatres
250
Amusement, except motion pictures
251
Other service, including schools
252
Service not allocable
For footnotes, see pp. 29-50.
Total
number
Number
of
of re
turns 8/ returns
(Money figures in thousands of dollars)
Returns with net income 2/
Adjusted _______________ Taxes
Total tax
excess
Income
Declared Excess
profits
tax 3/
value
profits
net
excess- tax 4/
income 10/
profits
tax
Returns with no net income 2/
Dividends Number Total
Dividends
of
paid in
compiled Deficit 7j paid in
cash and
returns re
cash and
assets
assets
ceipts 9/
other than
other than
own stock
own stock
Total
Net
compiled income 2/
re
ceipts 9/
3,856
5,054
27
790
5
5,149
768
591
1,519
189
82
124,441
36,762
5,494
31,268
5,982
1,254
3,098
1,602
2,672
2,260
1,679
10
569
2
2,096
579
419
957
103
38
97,550
28,858
3,861
24,977
4,901
956
2,603
1,172
2,180
2,719,948
2,372,009
37,939
309,987
14
4,968,535
3,861,737
989,174
92,581
15,456
9,586
64,016,723
31,011,180
1,598,788
29,412,392
7,168,708
2,490,371
2,088,622
1,788,481
2,042,891
703,925
632,365
9,880
61,679
1
970,104
761,704
184,822
21,582
1,246
749
3,439,123
1,249,108
95,542
1,155,566
192,818
139,684
121,756
91,003
104,322
1,034
13,624
2,002
72,955
5,435
4,913
796
10,887
1,482
57,682
4,686
4,309
586,518
11,502,589
1,744,212
27,985,634
9,708,976
7,960,045
522
200
5,699
1,749
4,212
10,412
4,976
9,976
8,171
7,293
878
1,792
2,199
7,109
7,237
3,988
14,724
37,904
4,381
8,246
4,285
789
3,162
10
7,098
1,755
5,351
14
5,080
1,550
4,122
702
3,420
4,370
4,845
252
259
118
4,199
1,489
3,385
9,072
5,926
6,719
6,205
5,524
681
1,182
1,942
5,723
5,798
3,358
11,030
22,977
5,129
5,679
3,016
574
2,086
3
4,080
1,221
2,848
11
1,982
961
3,167
315
2,852
1,881
2,003
95
1,558,142
210,789
5,883,869
197,613
909,769
3,428,077
886,890
1,283,792
1,305,111
1,089,338
213,775
234,238
224,766
1,411,606
1,903,424
1,007,506
5,021,909
5,374,674
1,004,424
821,866
604,622
• 60,706
156,204
334
1,041,843
617,937
418,822
5,084
149,053
104,609
1,606,587
736,387
870,200
340,816
288,117
17,579
216,702
177,424
5,944
33,334
192,572
149,591
4d,589
2,264
127
1,638,641
582,475
36,823
545,652
81,491
111,599
68,810
47,192
43,156
315,776
271,614
6,287
37,875
(14)
432,403
335,484
87,494
8,709
464
252
1,902,014
675,842
46,722
629,120
100,604
94,653
69,381
50,148
56,884
131,917
119,985
1,594
10,337
(14)
267,669
207,497
52,797
6,768
355
251
628,993
232,796
17,641
215,155
39,315
10,967
19,293
17,660
22,157
20,033
417,426
66,524
1,922,222
958,460
775,731
5,849
163,547
24,007
973,903
608,158
503,421
9,177
214,372
33,900
1,099,706
619,143
501,300
4,441
86,829
14,494
334,669
141,650
109,952
111
2,124
216
8,052
1,834
1,625
166,332
16,397
161,626
8,120
50,796
273,824
77,920
74,138
71,779
58,487
13,292
14,392
16,111
84,061
90,147
40,849
267,794
648,697
111,990
59,553
38,555
5,362
15,632
5
83,389
38,344
44,193
851
10,487
7,363
273,440
109,882
163,559
74,957
25,902
1,616
94,958
9,778
68,166
840
21,061
147,291
21,165
28,399
12,595
9,933
2,662
5,365
2,614
17,343
32,080
8,826
82,264
233,932
35,259
11,712
7,124
1,438
3,151
108,249
28,478
3,240
9,593
88,444
35,063
1,861
2,572
9,591
26,615
42,350
156,678
18,710
35,353
14,092
36,139
27,552
16,881
21,765
13,399
5,786
3,482
7,497
2,880
5,842
3,638
19,696
34,645
18,690
42,654
16,574
9,586
126,466
61,528
316,519
131,970
53,262
25,535
13,466
25,375
15,044
9,006
2,284 «
1,059
6,046
3,399
1
1
39,899
18,981
8,459
19,638
19,988
10,387
155
272
2,286
3,479
1,361
3,187
136,675
53,325
42,196
26,779
26,547
94,479
11,695
43,822
5,049
11,998
821
275
184
25
673
101
261
1,826
394
441
562
390
172
49
171
812
549
379
1,493
2,248
532
275
157
15
103
(14)
248
110
136
1
90
30
279
114
165
618
169
7
-
25,687
14,032
11,519
136
1,359
2,328
102,548
20,282
82,266
45,593
8,759
687
74
35
2
37
-
183,786
151,594
4,691
27,500
486,250
376,110
99,183
10,478
322
1S7
551,189
194,160
22,078
172,082
29,945
9,345
13,075
15,028
21,530
1,334
224,457
1,227
8,808
16
195,260
90
20,384
4
1*
144,262
853
136
117,642
155
16,512
458
5,987
75
3,035
29
1,086
23,398 2,623,717
6,843 1,277,514
1,457
133,321
‘5,386 1,144,193
931
352,364
238
92,674
418
47,326
384
49,778
442
58,764
14,812
578
13,221
1,013
(14)
34,682
30,509
2,248
1,076
283
566
76,211
33,274
4,247
29,026
5,337
3,485
1,387
1,905
2,'686
9,625
8,441
124
70
1
990
6,162
1,323
149
1,173
359
122
89
SO
32
171
172
173
174
175
176
177
178
179
180
181
182
183
184
185
186
187
188
189
190
4,625
125,420
19,190
756,985
475,658
389,743
3,422
66,498
13,239
319,815
168,309
128,420
206
2,380
387
13,527
641
517
43,831
456,032
43,423
1,030,694
120,873
116,712
897
11,474
1,855
33,338
2,558
2,365
95
415
11
3,538
1,316
1,316
191
192
193
194
195
196
79,587
6,328
52,707
610
16,762
112,523
16,248
21,606
10,108
7,977
2,131
4,568
2,033
14,137
23,415
6,609
63,445
182, 500
27,197
9,634
5,882
1,209
2,543
37,751
54
2,137
70
36,364
1,353
217
238
707
8,098
32,949
1,148
13,246
926
10,271
3,031
8,564
1,642
1,467
6,815
1,749
175
3,785
539
2,114
232
16,469 • 1,232
1,302
12,192
536
7,238
37,215
3,028
128,328 12,130
11,092
1,105
11,270
2,274
7,707
1,091
186
383
3,180
993
4
20,272
2,548
437
8,272
11,800
2,108
201
3
1,086
993
510
528
767
70,855
288
34,999
479
55,856
1,844
9,839
1,978
3,181
93
224
2,198
1,964
162,760
16,221
39,581
67,370
43,107
193,355
105,340
94,456
10,884
30,715
10,584
92,244
65,580
82,966
315,509
597,319
.¿91,747
136,190
106,887
4,948
23,723
632
115,539
26,288
89,196
55
32,584
17,571
63,754
31,902
31,852
56,700
77,606
5,629
80
113
2,764
378
862
2,594
2,227
7,116
4,279
3,818
461
771
392
5,291
2,977
1,150
9,599
47,002
8,859
5,432
3,772
455
1,182
23
5,829
1;180
4,648
1
1,607
1,145
7,612
5,6a
1,990
5,779
10,166
574
-
145
164,589
100
127,886
30
34,667
13
1,928
1
108
1
15,1034 1,257,987
5,489
457,557
396
28,685
408,872
5,093
981
60,309
83,457
229
529
49,560
32,080
408
496
54,231
•
20,671
11,090
9,465
.116
1,102
1,795
83,071
15,303
67,768
31,509
6,780
540
374,930
363,845
840
10,247
-
2,501
48
2,433
a
-
179
5
69
57
115
176
162
148
14
11
95
1,256
77
19
1,301
3,924
443
116
77
6
53
-
262
52
210
2,703
37
50
33
17
94
202
17
197
198
199
200
201
202
205
204
205
206
207
208
209
210
211
212
213
214
215
216
217
218
219
220
2a
222
223
224
225
226
227
228
229
230
231
232
Table 1. - Corporation Income and declared value excess-profits tax returns, 1/ 1945, by major industrial groups and minor industrial groups, for returns with net income and returns with
no net income: Number of returns, total compiled receipts, net income or deficit, and dividends paid in cash and assets other than own stock; also, for returns with net income: Total
tax, income tax, declared value excess-profits tax, excess profits tax, and adjusted excess profits net income — Continued
A
Major industrial groups and minor
industrial groups 7/ - Continued
234
235
236
2$7
238
239
240
241
242
243
244
245
246
247
248
249
250
251
252
253
254
255
256
257
258
259
260
261
262
263
264
265
266
267
268
269
270
271
272
275
274
275
276
277
278
279
280
281
282
283
Finance, insurance, real estate and lessors of
real property
Finance
Banks and trust companies
Long-term credit agencies, mortgage companies,
except banks
Short-term credit agencies, except banks
Sales finance and industrial credit
Personal credit
Other short-term credit agencies
Short-term credit agencies, except banks,
not allocable
Investment trusts and investment companies 11/
Management type
Fixed or semifixed type
Installment investment plans and guaranteed
face-amount certificates
Mineral, oil, and gas royalty companies
Investment trusts and investment companies
not allocable
Other investment companies, including holding
companies
Holding companies 12/
Operating-holding companies 13/
Security and commodity-exchange brokers and
dealers
Other finance companies
Finance not allocable
Insurance carriers, agents, etc.
Insurance carriers
Life insurance companies
Mutual insurance, except life or marine or fire
insurance companies issuing perpetual policies
Other insurance carriers
Insurance agents, brokers, etc.
Real estate, including lessors of buildings
Owner operators and lessors of buildings
Lessee operators of buildings
Owners fcr improvement
Trading for own account
Real estate agents, brokers, etc.
Title abstract companies
Real estate, including lessors of buildings,
not allocable
Lessors of real property, except buildings
Agricultural, forest, etc., properties
Mining, oil, etc., properties
Railroad properties
Public-utility properties
Other real property, except buildings
Lessors of real property, except buildings,
not allocable
Construction
General contractors
Special trade contractors
Construction not allocable
(
Agriculture, forestry, and fishery
Agriculture and services
Forestry
Fishery >
Nature of business not allocable
For footnotes, see pp. 29-30,
Total
Number
number
of
of re
turns 8/ returns
(Money figures in thousands of dollars)
Returns w1th net income 2/
Taxes
Adjusted
excess
Total tax
Income
Declared Excess
profits
profits
•tax _§/
value
net
excess- tax 4/
income 10/
profits
tax
Returns with 10 net incon»
—
Dividends Number Total
Dividends
of
compiled Deficit 2/ paid in
paid in
cash and
returns re
cash and
assets
ceipts 9/
assets
other than
other than
own stock
own stock
Total
Net
, compiled income 2/
re
ceipts 9/
143,289
90,568
9,734,104
3,756,042
74,574
666,793
602,980
3,174
60,638
1,069,929
45,005
1,092,671
262,141
47,781
233
34,457
15,246
3,048
25,600
14,038
1,696
4,145,138
2,820,124
29,008
1,753,569
1,008,291
8,038
23,865
13,284
62
406,514
295,960
2,089
385,726
284,099
2,031
1,242
769
19
19,547
11,092
38
800,775
278,755
1,938
7,344
818
1,232
91,291
40,449
4,853
67,584
12,734
8,374
28,268
1,924
1,015
234
235
258*
3,536
1,514
1,442
157
423
2,322
956
1,005
105
256
212,016
69,146
131,595
2,379
8,896
56,840
19,987
34,189
748
1,915
2,707
2,277
402
3
24
21,112
7,821
12,573
197
520
18,899
5,969
12,232
194
505
59
34
20
1
4
2,153
1,818
322
2
11
25,075.
6,37f
17,749
362
590
937
421
364
39
113
14,358
. 8,600
4,979
153
627
2,558
1,215
958
74
312
473
112
289
22
50
237
238
239
240
241
3,527
516
84
83
2,656
406
66
60
324,328
182,379
15,485
21,142
259,444
158,213
15,345
2,418
155
15,378
4,815
1,195
236
68
49
2
(14)
123
-
-
15,568
4,864
1,197
236
mm
215,384
136,375
11,169
499
814
95
16
21
3,642
933
42
23
6,167
1,351
567
5
18,989
17,120
16
■e
242
243
244
245
134
2,710
76
2,048
4,754
100,568
1,304
84,164
109
46
511
8,759
418
8,714
(14)
16
95
29
1,385
65,956
49
633
291
2,355
161
4,084
24
1,830
246
247
1,884
1,388
444,882
320,597
1,216
38,693
57,655
49
990
259,801
451
7,102
14,387
1,240
248
890
994
1,312
639
749
991
247,319
197,565
208,608
213,749
106,848
58,059
45
1,171
3,297
20,221
18,472
17,699
20,146
17,509
14,921
37
12
209
39
951
2,569
174,481
85,320
8,226
210
241
246
2,062
5,040
5,702
¿1,111
3,276
1,555
230
1,011
151
249
250
251
1,499
4,405
7,876
2,070
715
471
655
1,854
5,529
1,626
631
436
58,150
48,041
3,523,849
3,310,697
1,434,651
28,716
26,555
15,749
1,476,097
1,446,284
1,256,610
23,428
1,962
1,183
12,355
8,810
-
10,671
4,722
86,157
75,887
24,725
7,642
8,991
3,750
75,659
68^390
24,725
7,642
25
45
157
39
•
1,655
927
10,340
7,459
-
6,004
5,589
119,991
108,399
32,289
38
655
2,193
2,065
576
63
55
7,997
7,187
505,009
468,556
595
252
11,416
10,394
29,363
27,109
90
72
461
4,015
8,900
8,796
20
•e.
252
253
254
255
256
257
884
5,806
94,136
74,074
2,662
4,959
2,561
3,180
1,243
5,457
559
3,905
55,955
47,185
1,584
2,149
1,259
1,968
803
1,007
1,847,330
213,151
1,859,364
1,580,998
67,122
48,248
17,841
80,600
37,173
27,382
166,246
29,813
423,177
361,400
10,383
15,351
6,800
11,662
9,708
7,874
8,810
3,542
27,424
22,172
1,507
595
129
967
1,422
632
43,520
10,270
151,643
112,429
3,625
4,129
1,691
3,646
3,730
2,593
56,023
7,270
108,465
93,973
2,369
3,450
1,523
2,820
2,472
1,857
39
119
1,699
1,117
41
219
63
114
55
90
7,459
2,881
21,479
17,339
1,215
460
104
711
1,203
446
76,072
11,592
86,579
74,694
2,218
2,759
1,415
1,600
2,665
1,228
278
1,689
32,796
25,580
998
2,012
1,074
998
360
1,774
467,710
36,453
464,073
401,944
22,624
9,716
2,925
14,667
4,284
7,913
26,947
2,254
144,556
112,005
2,345
12,306
5,719
1,363
212
10,606
8,776
104
9,518
6,679
659
879
805
S3
30
432
258
259
260
261
262
263
264
265
266
267
6,820
1,064
2,678
415
178
2,053
452
5,484
558
1,694
216
103
739
174
205,755
11,910
81,615
89,774
14,815
5,446
2,195.
103,199
5,738
39,735
46,982
6,551
2,831
1,$62
10,§32
116
6,395
5,870
525
7
21
42,479
1,724
16,706
20,196
2,766
739
348
33,130
1,617
11,239
16,881
2,338
727
328
76
18
38
6
2
6
6
9,273
89
5,429
5,509
426
6
15
62,587
3,548
25,854
29,158
2,538
. 1,115
377
2,800
471
899
124
65
1,044
197
32,298
2,578
8,050
18,905
648
1,523
594
20,637
2,637
- 4,989
8,299
797
2,924
991
1,096
232
535
185
2
139
2
268
269
270
271
272
273
274
12,801
5,668
6,745
388
6,528
5,964
284
280
17,027
7,811
3,160
4,544
107
3,866
3,568
145
152
1,908
2,458,988
1,570,640
864,954
23,394
893,856
847,807
16,297
29,753
139,661
146,070
95,250
49,797
1,023
149,892
142,890
2,559
4,442
15,283
42,036
24,416
17,388
232
41,615
39,626
33
1,955
2,022
62,134
38,965
22;792
377
65,727
60,779
724
2,224
5,362
28,480
19,571
8,699
210
32,848
31,473
690
685
3,492
1,042
650
384
9
'631
6l3
6
12
115
32,611
18,744
13,709
158
30,249
28,693
28
1,528
1,755
27,957
23,113
4,773
71
25,923
24,402
1,516
205
3,036
4,023
1,951
1,958
114
2,287
2,069
116
102
3,459
488,965
309,359
175,590
4,016
99,516
93,951
2,255
3,532
26,563
33,451
24,156
8,971
325
16,079
15,481
2,058
541
10,949
1,514
1,169
308
37
1,661
1,592
67
2
2,466
275
276
277
278
279
280
281
282
283
-
mm
Table 2. - Corporation Income and declared value excess-profits tax returns, _l/ 1945, by major industrial groups: Number of returns, compiled receipts, compiled deductions,
compiled net profit or net loss, net income or deficit, net operating loss deduction, adjusted excess profits net income, income tax, declared value excess-profits tax,
excess profits tax, total tax, compiled net profit less total tax, and dividends paid by type of dividend
(Money figures in thousands of dollars)
Manufacturins
All
industrial
groups
1 Number of returns 15/
2
S
4
S
6
7
8
g
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
50
31
32
38
54
55
36
57
58
39
40
41
42
43
44
45
dross sales 16/
dross reoeipts from operations 17/
Interest on dovernment obligations
(less amortizable bond premium):
Wholly taxable 18/
Subject to declared vailue excessprofits tax and surtax 19/
Subject to surtax only 20/
Wholly tax-exempt 21/
Other interest
Rents 22/
Royalties 23/
Excess of net short-term capital gain
over net long-term capital loss 24/
Excess of net long-term capital gain
over net short-term capital loss 24/
Net gain, sales other than capital
assets 25/
Dividends, domestic corporations 26/
Dividends, foreign corporations 27/
Other receipts
Total compiled receipts 9/
Deductions:
Cost of goods sold 28/
Cost of. operations 28/
Compensation of officers '
Rent paid on business property
Repairs 29/
Bad debts
Interest paid
Taxes paid 50/
Contributions or gifts 51/
Depreciation
Depletion
Amortization 32/
Advertising
Amounts contributed under pension plan,
etc.
Net loss, sales other than capital
assets 25/
Other deductions
Total cospiled deductions
Cospiled net profit or net loss
(17 less 34)
Net Income or deficit 2/(55 less 7)
Net operating loss deduction 33/
Adjusted excess profits net income 10/
Income tax 5/
Declared value excess-profits tax
Excess profits tax 4/
Total tax
Compiled net profit less total tax
(35 less 42)
Dividends paid:
Cash and assets other than am stock
Corporation's am stock
For footnotes, see pp, 29-30.
421,125
Bituminous
coal,
Total
Uetal Anthra lignite,
mining
peat, etc.
mining cite
and
mining
quarrying
7,296
848
148
1 ,5 4 4
203,574,934 5,233,955 679,478 315,688 1,343,307
162,105
40)455)081 '554,459 31,741 57,260
Nonme- Mining
Crude
petroleum tallic and
mining quarry
and
natural and
ing not
gas pro quarry alloca
ble
duction ing
3,309
1,263
570,097 320,515
285,991 54,928
184
176
125
10
66
17
1
447
6,559
120,345
207,793
91,648
4,179
13
844
10,226
19,539
2,764
405
7
242
3,126
5,447
452
93
2
77
954
2,858
4
11
1,308
75
220,778
12,050
5,235
978
223
5
6,875
946
506
2
1,200
156
823
174
542
57
5
(14)
5,591
206^535
2,225)086
2,558,378
255)862
44,243
29
281
6,158
24,034
25,694
1,425
1
67
1,580
1,526
1,827
249
(14)
3
351
4,587
7,341
9
23
34
2,091
12,293
7,813
49
2
116
1,796
3,753
7,733
1,062
3
61
530
1,809
963
52
878,645
42,685
4,207
3,786
4,050
29,259
192
366
2,460
5,357
1,418,466
21,583 8,012
114
97
286 (14)
428
134^394
7,436
1,906,963
32,800 7,847 2,113
255)447)753 3,953)682 740)459 37l)779 1,544,376
8,854 1,246
44
1
12,216 3,066
924,380 365,103
157,376,645 2,315,560 479,324 271,727 1,068,574
22^665^652 575^086' 18)747 28,405 '125,105
15,503
5 1 )4 3 2
34/4)118)474
4,305 2,714
24)816 4)208 1,866
5,801
2^558^191
29,026
2^624^368
64)747 5)929 9,581
'972
584
'277)115
7)868 4,555
5,997
2,307)987
26,664 3)736 2,676
35,145
5)585)236 110)007 27,306 10,290
944
5^126
983
143
265^679
41,001
5,976^728 146)652 22,020 7,537
39,206
*692^840 211,433 48,988 7,589
4,035
1,950^771
28^174 13)424 1,365
'524
5^804
'573
1,012
1^922^734
308
'529
'766)206
6 )0 5 ?
953
295,641 196,981
180,550 22,546
17,406 ,11,261
10,586 2,537
7,079 13,031
1,344
389
11,699 2,430
27,292 9,656
672
381
61,022 14,802
102,746 12,695
7,074 2,114
1,176
711
3,772
484
464,066
15,088
2,005
620
5,780
21,138,957
114^407
8,508^740
4 )182)705
55^059
6,557^006
10^794^750
lo)55o)741
6,097,391
'3 3 4 '4 3 5
242,388
5,775
58)579
86)528
345
31,495
118)368
124)300
68,983
514
2,498
24)115
54
2,136
26,302
42)747
159,817 52,102
1 )9 1 7
90
8,298
'520
895
2,944
10
596
3,551
4 )7 5 0
6 ,4 9 7
3,283
210
1,926
118
508
26
96,418
26,549,569 320,501 34,602 17,703
35/234',102,261 5,71l'015 671)409 363,477 1,473,048
71,528
" 21^345^491 '242)669 69)050 8,301
2,591
6,080
674
3,436
ISO
55
8,728
109,757
10,959
6,314
'563
3,296
79,112
Tobacco
Food and
kindred Beverages manufac
tures
products
2,705
133,808 37,041
865,130 329,562
59,250 35,541
71,294
1,177
13)578
24)545
92
10,975
35,613
35)715
59,134
991
8,494
24,481
78
6,737
31,296
27,954
35,480
561
13,050
10,266
111
10,997
21,374
14,167
29,332
402
53,640 18,012
'742
685
TextileCotton mill
manufac products,
except
tures
cotton
824
Apparel
and
products
made
from
fabrics
3 ,5 7 9
7,626
Lumber
Leather Rubber and
timber
products
and
basic
products
Droducts
■2,059
453
2,335
4,851 133,127,968 19,135,506 4,383,328 2,210,152 2,756,617 4,673,528 5,843,745 2,164,415 3,287,142 1,571,055
55,745
45,088
9,690
4,282
19,538 153,971 107,766
121,813
12,700
2,436 5,968,132
1,501,755
'301,280
182,562
Total
manufac
turing
Mm
4,348
74
1,585
134
1,451
61
9
5
139
98 i
3,187
1,777
6,087
7,577
904
82
210
73
2
61
\1,408
2,730
4,139
102
2
57
807
1,574
109
86
6,059
6,649
1,587
1 ,3 3 5
158
221
122
2,086
85
68
2,536
48
4
5
959
4,048
2,116
6
1,752
73
119,805
21,565
4,476
172
5,897
5,874
832
365
2
5
4
5
16 6
109 7
1,728 8
4,925 9
2,387 10
318 11
763
39,793 12
14
852 13
2,726
1,583
1,595
5,618
1,733
3,827
6,258
5,757
357,546
20,764
(14)
55
6,552
84
59
794
647
130
' 107
6,755
77,255
15,894
13,246
10,193
10,249
22,855
12,465
18,904
3,644
975,721
120,429
123
5,361,058
2,191,384
1,475,386
7,586 141,283,963 19,458,605 4,435,946 2,227,738 2,813,015 4,878,590 3,978,399
3,312 102,511,816 15,915,494 2,786,144 1.841.832 2,223,082 5,653,514 5,016,556 1,772,756 2,506,609 1,034,855
22,325
6,126
708
79,165
261
8,137 101,271
5,120
55,322
1,755 4,316,081
32,165
16,877
47,665
95,276 136,581
25,462
44,037
6,394
150,808
243 1,734,710
3,965
11,064
10,745
17,171
29,940
1,807
2,928
49,879
10,012
592,076
18
14,324
15,494
49,853
9,357
34,692
57,810
3,161
34,747
197,329
100 2,042,788
2,216
445
573
1,192
313
1,390
257
1,955
66,407
6,230
25
5,766
9,074
13,569
6,463
3,510
5,795
15,405
12,785
40,860
127
447,260
26,185
43,369
23,997
76,195
66,543
40,365
97,263
196,199 652,895
318 2,771,110
2,188
1,225
6,396
9,624
2,970
6,605
5,676
1,401
12,653
149,728
3
29,914
11,062
34,442
14,520
34,602
59,000
44,224 , 6,597
158,076
270 1,826,832
35,431
56
17
173
35
51
438
620
427,574
411
86,535
2,051
583
213
6,248
4,582
3,936
9,743
162 1,284,576
30,404
5,000
12,695
25,512
6,179
21,895
45,736
96,051
203,855
8 1,154,492
1,961
5,812
5,475
3,362
8,495
4,249
2,225
7,003
56,214
461,858
11
695
1
4,248
1,202
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
64,509 133,126 309,556 562,132 144,005 282,594 143,258 35
929 11,120,073 1,416,618 337,198
8,587 131,027,187 18,471,280 4,026,859 2,087,017 2,535,154 4,427,269 3,736,642 2,055,822 5,114,700 1,359,841 54
987,325 409,087 140,722 277,861 451,121 241,757 135,562 246,558 115;545- .35
36/801 10,256,776
986,481 408,845 140,645 277,762 450,982 241,696 185,505 246,353 115,456 36
56/801 10,250,217
1,446
1,017
578
92
1,595 37
299
112
1,701
5,092
11
30,370
29,712 38
62,518 171,516
15,268 175,962 245,737 127,516
440,272 230,495
65 5,251,670
30,362 39
28,371
30,291
81,775
41,710
41,634
49,317
73,984
222,832
179 1,947,769
664
535
205 40
1,475
1,688
495
2,038
20
4,111
30,106
(14)
22,557 41
48,539 159,161
95,735
10,843 138,350 189,035
329,345 179,757
. 54 4,154,552
169,987
52,923
42
139,133
77,574
180,479
272,285
60,181
556,289 255,779
255 6,112,228
62,622 43
76,571
58,189
97,581 178,856 ; 102,624
80,541
431,036 153,308
52/1,038 4,144r,548
254
-
2,824,753
146,158
262,072
11,617
76,579
2,050
85,508
78
39,522
4,148
81,776
11,858
26,116
7,055
27,176
4,784
59,736
758
40,190 44
680 45
Table 2, - Corporation income and declared value excess-profits tax returns, 1/ 1945, by major industrial groups: Number of returns, compiled receipts, compiled deductions]
compiled net profit or net loss, net income or deficit, net operating loss deduction, adjusted excess profits net income, income tax, declared value excess-profits tax,
excess profits tax, total tax, compiled net profit less total tpx, and dividends paid by type of dividend - Continued
(Money figures in thousands of dollars)_________
Major industrial groups 7/ - Continued
Manufacturing - Continued
Printing
Furniture
AutomoNonMachinery,
TransporPaper and and pub- Chemicals Petroleum Stone,
and
Iron,
ferrous Electrical except trans- biles'and tation
Other
Manufac- Total
and coal clay, and steel,
metals
machinery portation
finished allied x lishlng and
equipment, equipmentf manufac- turing
public
and
and
allied
lumber
products indus
and equip equipment
turing not
utilities
products glass
except
except
tries
products products their
products
products
ment
and
electrical automo
allocable
products
electrical
biles
1 Number of returns 15/
Receiptsi
2 Gross sales 16/
3 Gross receipts from operations 17/
Interest on Government obligations
(less amortizable bond premium):
Wholly taxable 18/
4
Subject to declared value excess5
profits tax and surtax 19/
6 Subject to surtax only 207
Wholly tax-exempt 21/
7
Other interest
9 Rents 22/
10 Royalties 25/
11 Excess of net short-term capital gain
over net long-term capital loss 24/
12 Excess of net long-term capital gain
over net short-term capital loss 24/
IS Net gain, sales other than capital
assets 25/
14 Dividends, domestic corporations 26/
IS Dividends, foreign corporations 27/
16 Other receipts
17
Total compiled receipts 9/
Deductions:
18 Cost of goods sold 28/
19 Cost of operations 28/
20 Compensation of officers
21 Rent paid on business property
22 Repairs 29/
25 Bad debts
24 Interest paid
25 Taxes paid 50/
26 Contributions or gifts 51/
27 Depreciation
28 Depletion
29 Amortization 52/
SO Advertising
SI Amounts contributed under pension
plan, etc.
52 Net loss, sales other than capital
assets 25/
S3 Other deductions
54
Total compiled deductions
55Compiled net profit or net loss
(17 less 54)
56 Net income or deficit 2/ (55 less 7)
57 Net operating loss deduction 53/
58 Adjusted excess profits net inoome 10/
59 Income tax 5/
40 Declared value excess-profits tax
41 Excess profits tax 4/
42
Total tax
43 Compiled net profit less total tax
(35 less 42)
Dividends paid:
44 Cash and assets other than own stock
45 Corporation's own stock
e
For footnotes, see pp. 29-i>0.
5,917
2,087
10,057
6,186
442
2,770
6,526
2,440
1,871
1,965,514 5,516,871 3,491,881 8,576,689 9,257,830 2,280,910 17,890,376 3,842,812 6,967,010
16,062
46,503
17,223
7,870 265,514 347,551
623,380
446,100
90,309
1,478
174
3,716
415
4,611
1,115
9,077
808
6,884
1,253
2,862
413
20,523
1,364
4,007
92
4,333
1,090
15
186
969
2,824
242
75
5
220
3,639
6,726
2,338
78
30
418
2,700
11,700
8,329
112
25
619
7,171
12,070
12,496
265
88
552
16,476
55,829
15,441
188
6
108
1,514
3,384
2,577
211
47
728
16,455
25,268
9,306
462
2
88
1,402
3,748
1,349
76
97
447
19,682
5,476
11,541
456
5,874
11,229
7,448
15,822
32,740
4,656
14,276
4,242
260
115
474
263
131
257
482
150
6,192
3,951
2,546
19,756
Transportation
13,193
Other
Communi- public
cation
utilities
2,949
1
258,448
196,234 ' 6,827
55,387
9,615,309 3,062,827 15,617,088 2,696,039 1,721,545
153,361
1,746 5,381,786
23,045
57,290 21,453,950 13,857,907 2,715,820 4,880,222
2
5
620
1,102
Public utilities
5,594
9,618
1,372
1,437
102
15,625
890
2,152
397
1,514
80
32,455
2,446
19,151
2,079
5,415
47
7,870
320
4
5
41
1,268
7,003
6,808
8,450
224
(14)
50
1,445
3,951
1,266
10
25
53
14,642
8,912
5,162
585
2
148
2,014
3,811
1,357
102
5
60
1,065
2,899
837
55
90
2,841
101,995
564,316
5,734
1,517
49
2,465
58,180
314,165
4,535
1,447
3
50
2,508
25,577
731
27
57
327
41,307
24,774
468
43
6
7
8
9
10
11
14,154
6,592
2,277
26,115
2,665
2,245
37,079
27,709
1,828
7,545 12
979
448
25
165
171
106
3,106
2,876
35
196 13
*
7,814
18,564
1,607
14,241
83,681
94,936
5,352
15,687
29,370
1,573
7,316
5,876
329
1,012
22,974
2,844
5,629
9,389
38,561
24,268
11,744
21,649
35,690
258,015
24,695
75,695
29,409
2,006,514 5,584,258 3,845,276 9,910,212 10,384,718 2,543,832 18,534,081 5,995,228 7,123,989
68,261
76,589 177,825
1,359
322,673
25,881
3,314
10,401
1,499
867
1,664
5,159
1,568
132
7,690
4,466
2,064
922
41,896
69,051
6,252
20,883
11,777
187,097
14,558
9,198
55,487
9,880,849 3,089,314 17,256,088 2,751,387 1,778,345 22,663,351 14,606,149 2,944,405 5,112,797
14
15
16
17
1,487,678 2,584,588 2,111,555 6,407,994 6,853,274 1,606,678 14,018,044 3,000,015 5,415,082
11,400
3,624 157,232 295,447
330,893
10,617
275,391
8,112
55,745
62,073
63,827 147,974 123,116
46,561
22,594
214,752
61,479
64,003
36,473
28,971
10,836
16,052
91,142
7,829
75,661
33,948
32,340
19,511 145,705
23,695
85,535
205,674
56,485
491,890
56,951
88,584
7,196
7,055
1,777
2,281
1,470
1,111
6,460
4,137
1,211
11,856
4,409
15,931
62,567
92,136 ' 11,012
26,194
26,599
6,438
60,697 127,148
56,487
284,657
289,403
61,483
107,760
52,954
36,963
7,427
4,778
10,115
11,387
5,622
18,832
4,906
2,421
3,250
44,757 167,098
296,772
21,586
74,917
351,444
51,685
54,768
64,714
1,963
4,711
89
11,991
19,687
117
324,000
1,912
23,438
498 165,527
298,716
11,126
85,151
46,296
1,755
12,480
281,135
66,646
9,184
13,054
22,392 267,444 " 47,270
16,434
24,828
70,510
10,782
16,977
53,148
5,034
50,591
82,035
7,553
73,639
10,524
182,711
4,148
141,778
36,785
7,105,577 2,486,227 11,495,202 1,892,081 1,504,198
7,452 12,681,061 9,189,196 1,333,592 2,158,274
10,702
16,409
902 2,873,722
14,287
29,427
73,516
47,259 .166,489
122,775
177,621
20,737
54,133
51,188
24,304
9,714
690,391
614,899
40,416
45,443
17,478
8,288
3,673
3,394
19,226
47,882
40,815
76,658
149,602
29,524
177,580
4,906
11,637
1,326
3,770
6,627
5,566
20,313
1,759
3,881
61,468 361,335
950,671
527,870
34,425
6,254
5,644
8,059
24,713
23,657 1,357,140
757,151 171,537 428,451
240,104
55,732
151,421
41,633
23,596
6,073
10,435
1,560
7,091
1,208
13,399
4,078
14,011
18,067 1,165,016
110,747
455,990 246,544 462,483
112,777
36,235
28,830
7
15,897
25,579
656
49
539
1,009
9,675
614
98,676
2,768
10,962
7,929
621,200
519,755
26,467
126,242
98,825
9,758
23,793
14,192
19,566
57,848
17,020
47,722
66,182
30,790
47,882
75,949
20,391
34,426
12,628
3,568
144,222
3,654
28,525
18
19
1,466
5,449
2,271
10,718
5,893
4,678
20,675
1,908
5,142
195,855 292,655 651,519 1,027,655 1,064,864 265,230 1,047,599 246,463
548,807
1',871,778 5,241,761 3,260,712 8,878,627 10,032,784 2,132,631 17,291,929 3,727,018 6,529,282
154,756 542,497 584,564 1,051,5851 351,935 211,201 1,242,152 268,210
594,708
154,551
1,126
56,151
30,295
562
45,864
74,721
60,015
342,277
934
158,505
69,596
565
127,745
197,707
144,790
23,912
1,876
77,459
6,379
584,146 1,030,965
2,765
2,258
319,227 415,926
97,830 225,502
1,862
1,249
252,409 336,517
352,100 565,268
232,464 468,317
351,382
451
13,014
98,260
115
10,521
108,896
243,039
102,122
13,445
360,571
11,863
382,958
5,654
211,093 1,241,423
2,612
3,517
82,084
724,556
52,857
212,072
529
5,967
66,192
571,435
119,577
787,473
91,624
454,679
62,506
1,650
315,915
14,081
6,504
611
10,359
1,582
1,919
94,856
57,668
1,608
20
21
22
23'
24
25
26
27
28
29
50
31
35,580 32
798,527 265,304 442,753 35
920,391
184,019 1,000,179 316,169 187,675 1,504,584
8,951,345 2,919,131 16,219,445 2,498,797 1,657,363 19,723,433 13,291,143 2,255,242 4,177,047 34
170,183 1,016,645 252,539 120,982 2,959,918 1,315,006 689,162 935,750 55
929,503
268,122
429
110,203
58,469
1,009
84,450
143,928
124,283
594,261
968
372,694
90,272
798
504,267
595,538
199,570
928,235
2,291
547,455
1S8,430
3,125
437,820
599,575
530,128
104,414
2,624
145,261
6,176
193,096
15,110
170,153 1,016,590
998
103
622,584
127,053
161,874
22,232
467
5,142
100,379
485,485
.125,077
650,499
47,106
366,144
252,391
1,562
138,874
45,681
1,081
107,577
154,159
98,400
295,476
5,387
51,392
12,056
25,135
6,545
120,922 2,957,076 1,312,541
5,117
828
8,464
985,673
576,399
68,568
320,058
719,644
24,122
2,124
606
2,543
52,972
825,619
477,244
799,426
77,700 1,547,605
43,282 1,392,313
515,580
27,840 1,242,972
2,546
6,698
369,666
5,232
56
57
58
59
40
689,112
346
216,702
131,917
74
183,786
515,776
373,386
935,425
3,001
192,572
267,669
145
164,589
432,405
503,346
577,451
612
495,875 44
854 45
41
42
45
Table 2. - Corporation income and declared value excess-profits tax returns, _1/ 1945, by major industrial groups: Number of returns, compiled receipts, compiled deductions,
compiled net profit or net loss, net income or deficit, net operating loss deduction, adjusted excess profits net income, income tax, declared value excess-profits tax
excess profits tax, total tax, compiled net profit less total tax, and dividends paid by type of dividend - Continued
Total
trade
1
2
3
4
5
6
7
8
9
10
U
12
15
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
53
54
35
36
37
58
39
40
41
42
43
44
45
lumber of returns 15/
Receiptsi
Gross sales 16/
Gross receipts from 'operations 17/
Interest on Government obligations
(less .amortizable bond premium):
Wholly taxable 18/
Subject to declared value excessprofits tax and surtax 19/
Subject to surtax only 20/
Wholly tax-exempt 21/
Other interest
Rents 22/
Royalties 23/
Excess of net short-term capital gain
over net long-term capital loss 24/
Excess of net long-term capital gain
over net short-term capital loss 24/
Net gain, sales other than capital
assets 25/
Dividends, domestic corporations 26/
Dividends, foreign corporations 27/
Other receipts
Total compiled receipts 9/
(eductions:
Cost of goods sold 28/
Cost of operations 29/
Compensation of officers
Rent paid on business property
Repairs 29/
Bad debts
Interest paid
’
-Taxes paid 50/
Contributions or gifts 51/
Depreciation
Depletion
Amortization 32/
Advertising .
Amounts contributed under pension
plan, etc.
Net loss, sales other than capital
assets 25/
Other deductions
Total compiled deductions
ompiled net profit or net loss (17
less 54)
et income or deficit _2/ (35 less 7)
et operating loss deduction 35/
djusted excess profits net income 10/
nccme tax 5/
eclared value excess—profits tax
xcess profits tax 4/
Total tax
ompiled net profit less total tax (35
Less 42)
ivldends paid:
Cash and assets other than awn stock
Corporation's awn stock
or footnotes, see pp. 29-30.
Total
whole
sale
Commission
merchants
Other
whole
salers
»
(Money figures in thousands of dollars)
Major industrial groups 7/ - Continued*
Trade
Retail
Food
stores,
Apparel Furniture Eating
Total
General including Package Drug
and
and house and
Auto
retail merchan market
liquor stores acces
furnish drinking motive
dise
milk
stores
sories
places
ings
dealers
dealers
120,948
35,681
5,518
30,363
71,209
5,327
5,552 1,727 4,090
10,220
64,436,727 31,119,174 1,301,127 29,818,047 28,149,155 9,575,545 5,969,779 207,976 930,463 5,581,174
1,304,928
864,407
390,015
474,393
355,051
32,386
53,490 5,186 7,064
50,727
26,191
1,590
9,187
550
775
19
8,415
350
15,197
1,155
8,067
331
1,280
546
125
1,146
45,685
143,143
6,486
2,581
56
453
21,201
25,854
3,547
1,231
6
62
5,052
2,709.
259
162
50
391
16,148
23,145
3,288
1,070
57
644
18,439
104,088
1,812
961
24
158
7,318
54,328
532
125
105
1,022
4,374
52
69
49,200
21,382
1,690
19,692
21,236
6,359
6,418
1,582
107
1,476
4,020
258
16
4,852
9,750
7,847
Filling Hard Building
Other
stations ware materials, retail
fuel,
trade
1,721
6,955
7,100
3,894
14,058
1
862,769 1,579,651 1,529,198 254,146 229,782 1,453,048 1,515,602 1,060,019 5,168,399
17,443
80,263
55,650
5,373 1,407
24,399
30,224
11,422
85,489
2
3
314
5
1,656
32
1,097
24
417
25
618
51
113
2
,1
1
7
396
1,757
216
6
3
279
1,149
18,222
203
190
2
21
1,538
5,547
28
58
2
28
346
4,950
42
72
3
4
1,763
4,576
284
175
2,037
261
445
1,554
624
2,124
1,967
402
1,413
49
87
80
146
631
508
105
(14)
2,174
Retail
trade
Trade not
not
allocable
alloca-
68
38
110
2
667
S3
547
27
340
40
1,807
86
4
5
* 6 !(14)
5
2
81
255
506
2,410
37
17
22
5
10
23
1,909
4,580
233
149
2
19
1,936
2,866
149
43
2
14
918
2,058
58
65
12
49
4,046
13,202
1,127
189
338
3,559
1,105
904
6,582
6
7
8
9
10
11
12
39
495
193
217
815 IS
48,400
25,091
7,409
17,681
20,214
10,402
1,173
9 1,013
3,098
21,288
8,506
82
8,424
4,451
(14)
4,060
3
5
548,731
186,673
22,654
164,039
317,870 129,996
11,303
213 7,579
57,279
66,640,440 32,288,694 1,732,109 30,556,585 29,014,528 9,829,849 6,046,629 213,834 949,350 3,495,446
636
444
777
256
108
777
985
537
5,095
2
571
5
1
3
1
2
(14)
8,532
42,285
13,071
7,780
2,004 2,779
14,176
15,515
13,895
44,188
929,996 1,477,147 1,408,451 264,952 235,350 1,503,850 1,569,004 1,090,471 5,557,418
50,701,527 26,971,566 1,205,957 25,765,610 19,646,525 6,231,199 4,796,960 169,26? 634,696 2,192,787
674,561
458,043
134,887
303,156
186,899
9,682
36,925 4,361 4,105
11,674
1,213,659
522,228
62,556
459,672
564,358
87,715
4£f,753 9,744 23,181
98,490
816,573
l07,992
97,007
10,985
662,714 205,155
65,685 3,418 35,746 165,534
210,687
47,924
1,883
46,041
143,995
49,941
24,695
558 4,702
15,269
66,398
17,917
1,550
16,567
41,457
12,104
24
2,474
196
6,874
107,892
49,473
6,526
42,947
50,006
21,222
6,158
4,106
550 1.054
554,656
166,935
11,143
155,791
340,162 138,087
41,842 2,229 10,646
55,075
55,634
18,543
1.836
16,707
33,601
17,713
2,876
119
675
$,353
276,171
67,091
-5,479
65,612
181,774
63,382
33,788
593 6.055
16,094
2,331
1,437
136
1,302
591
78
15
3
5
12
6,230
5,072
123
4,950
1,007
109
254
2
17
28
571,952
161,164
7,056
154,108
379,428 188,110
28,247
713 11,401
72,565
87,221
30,705
1.837 - 28,868
52,038
38,822
2,103
24 1,289
4,055
45,754
7,266
963
6,503
34,248
22,197
1,275
5
178
2,029
7,885,155 2,459,049
189,835 2,269,214 4,806,216 1,788,292 801,610 14,889 167,465 596,234
63,276,381 31,072,406 1,640,752 29,431,654 27;124,801 8,873,809 5,887,662 206,092 899,409 5,223,937
3,364,059 1,216,288
91,357 1,124,951 1,889,527 956,040 158,967 7,742 49,941 271,509
3,362,913 1,215,835
91,295 1,124,540 1,888,883 955,902 158,862 7,742 49,954 271,230
13,892
5,308
845
4,463
6,737
169
812
72
611
144
1,638,641
582,475
36,825
545,652
973,905 608,158
68,166
840 21,061 147,291
628,993
232,796
17,641
215,155
354,669 141,650
35,063 1,861 9,591
42,550
15,034
5,489
396
5,095
8,052
1,834
261
675
1,826
101
1,257,987
437,557
28,685
408,872
756,985 475,658
52,707
610 16,762 112,523
1,902,014
675,842
46,722
629,120 1,099,706 619,143
88,444 2,572 26,615 156,678
1,462,044
540,445
44,635
495,810
789,821 356,897
70,523 5,170 23,526 114,831
484,977
3,420
45,457
29,255
4,498
4,459
2,472
13,866
1,387
4,660
7
21
24,054
940
772,806
49,563
50,014
68,225
18,631
457
2,685
30,514
957
19,286
17
138
8,021
978
964
2,321
557,551
60,692
195,485
29,121
22,227
1,580
175,255
27,641
525,353
25,690
169,624
7,168
56,542
2,052
222
66
8,167
528
33,006
4,647
958,357 190,809 166,818 1,091,978 1,090,588
3,266
50,453
618
10,936
17,264
64,803
5,095 12,124
51,126
53,541
24,638
3,802 5,908
7,960
40,045
1,982
569
8,040
9,317
4,866
3,036
637
214
4,U7
4,795
5,523
433
449
3,205
2.548
15,318
S,9U 2,808
17,029 .20,555
1,004
221
75
1,291
1,390
8,926
5,696
989
7,466
11,578
7
22
5
515
20
14
5
148
145
• 887 1,297
12,251
5,844
18,870
600
152
280
583
1.548
no
751
198
57
3,497
678
14
15
16
17
865,093 4,083,635 18
4,635
49,618 19
20,315 127,054 20
45,867 21
3,126
18,768 22
2,149
7,044 25
1,803
8,413 24
8,502
47,560 25
560
8,489 26
5,261
27,506 27
87
302 28
17
151 29
7,389
31,360 -SO
706
4,477 31
n,S4?
140
4,240 52
233,868 385,685 209,131 36,644 29,132
199,130 224,526 119,611 619,890 S3
854,283 1,410,097 1,340,946 251,328 219,629 1,425,057 1,481,815 1,050,738 5,079,174 54
75,714
67,050
67,506 15,624 15,721
78,793
87,189
39,755 258,244
75,693
558
21,165
18,710
594
16,248
35,353
40,561
67,022
1,924
28,399
14,092
441
21,606
36,139
30,911
67,501
701
12,595
i6,881
562
10,108
27,552.
39,953
13,361
3,669
10,447
1,660
8,726
1,388
13,621 15,719
208
79
5,565 2,614
2,880 5,658
171
49
4,568 2,033
7,49^ 5,842
6,127 9,880
5,796
97
2,209
510
78,770
825
17,543
19,696
812
14,137
34,645
44,148
87,170
445
52,080
18,690
549
23,415
42,654
44,586
39,719
590
8,826
9,586
379
6,609
16,574
23,159
151,778
17,725
> 958
12,269
1,924
7,258
1,021
38,516
5,882
258,195
1,846
8?,264
61,528
1,493
65,445
126,466
Table 2. - Corporation income and declared value excess-profits tax returns, _l/ 1945, by major industrial groups: Number of returns, compiled receipts, compiled deductions,
compiled net profit or net loss, net income or deficit, net operating loss deduction, adjusted excess profits net income, income tax, declared value excess-profits tax,
excess profits tax, total tax, compiled net profit less total tax, and dividends paid by type of dividend - Continued
______________________________________
Total
service
Hotels
and
other
lodging
places
Auto
motive
Personal Business repair
service service ser
vices
and
4,234
Number of returns 15/
35,107
Receipts:
Gross sales 16/
| 964,465 403,329
Gross receipts from operations 17/
4,754,310 627'952
Interest on Government obligations
(less amortizable bond premium):
1,478
Wholly taxable 18/
4,226
55
Subject to declared value excess217
profits tax and surtax 19/
.5
Subject to surtax only 20/
25
52
Wholly tax-exempt 21/
169
1,355
Other interest
8,048
45'839
Rents 22/
99,067
'278
Royalties 23/
4,369
89
Excess of net short-term capital gain
571
over net long-term capital loss 24/
3,611
Excess of net long-term capital gain
15,558
over net short-term capital loss 24/
347
Net gain, sales other than capital
2,217
assets 25/
1,304
Dividends, domestic corporations 26/
39,168
94
Dividends, foreign corporations 277
5,409
10,425
Other receipts
76,173
Total compiled receipts 9/
5,971,995 1,096)171
¡Deductions:
Cost of goods sold 28/
552,202 215,297
Cost of operations 28/
2,528,364 221,700
21,710
Compensation of officers
245,940
Rent paid on business property
232,515
49,688
Repairs 29/
101,282
46)058
Bad debts
9,523
1^742
Interest paid
53,337
27)398
Taxes paid 30/
46)365
Contributions or gifts 51/
l)208
Depreciation
138,636
48,098
Depletion
56
Amortization 52/
56
Advertising
10,168
Amounts contributed under pension
610
plan, etc.
Net loss, sales other than capital
12,709
4,639
assets 25/
Other deductions
298,214
Total compiled deductions
993)008
Compiled net profit or net loss (17
103)163
less 54)
Net income or deficit _2/ (55 less 7)
105,131
Net operating loss deduction 53/
5^464
Adjusted excess profits net income 10/
55^259
Income tax 5/
2 5 )5 3 3
Declared value excess-profits tax
'552
Excess profits tax 4/
27,197
Total tax
55^262
Compiled net profit less total tax (35
4 9 )9 0 1
less 42)
Dividends paid:
Cash and assets other than can stock
11,535
Corporation's cam stock
'5 2 4
For footnotes, see pp. 29-30,
7 ,9 5 3
6,628
iiscel1aneeras
Notion
repair
services, pictures
land
trades
2 ,9 7 5
91,569 89,270
220,589
725,569 1,035,466 82,180
Other
service,
includ
ing
schools
5,725
3,981
3,934
Total
finance,
insurance, Total
real estate, finance
and lessors
of real
nroDertv
Service
not
allooable
188
2,928
3,259
5,470
1,839
1,237
1,308
4,047
*
17,316
39,986
87,342
8,390
8,811
26,876
2,819
72
14,856
31,762 55,649 32,566
56,808
64,408 1,536,038 342,407 521,251
3,123
19,059
64,798
3,957,015
25,705
688,728
403,636
15,091
106,986
-
8
-
1,320,079
284,971
880,459
241,008
853,579
235,473
196
9
1,441
27
7,811
693
3,123
425
11,358
4,271
152
57
(14)J
(14)1
55
169
6
11
1
14
4,214
26,945
1,068
44
2
4
217
5,887
322
95
5
60
532
2,257
1,649
101
_
4,857
3,918
194,967 145,291
1,938,067 1,045,969
1,493,701 109,271
45,970
115,840
32,336
26,835
3,800
140,401
835,964
88,230
1,361
19,096
4
18
299
9,527
1,734
166
179
9
71
100,042
1,361
96
357
36
1,005
22,275
744
5,210
5,868
8
667
59,550
9,034
1,873
930
57
2,410
6,167
1,342
145
1,258
18
1,891
5,742
36,857
50
3
662
10,555
1,085
262
1,117
2,580
1,114
127
4,287
1,115
1,046
33
479,891
872,816
210,182
5,024
2,419 111,302
7,768
431
195
14
198
427
240
-
155,783
89,753
5,512
952
244
53,782
434
25
3
5
5,005
(14)
27,946 10,615
5,450
526
122,180 1,670,341 397,516 565,722
96
(14)
592
23,008
16,812
604,282 458,781
813
22,531
21,010
45,715
80,915
157,659
10,826,774 4,256,429 2,860,573
226
2
2,713
33,860
19,570 19,313 18,761
864,251 150,804 172,782
27,257 16,722 25,951
88,581 15,808 11,752
3,493
17,961
8,670
1,419
.1,366
311
2,445
1,320
14,518
6,696
33,656 14,909
335
2,611
1,525
6,405
29,110 10,827
27
96
85
261
41
391
4,657
4,750
58,729
665
6,458
1,280
1,622
11,407
1,383
485
196
25
153
445
24
347
104
58
39,775
141,609
54/513,539
175,558
122,483
100,291
702,486
588,709
22,046
557,425
23,374
7,110
55,467
42,745
18,091
43,058
330,414
57,191
18,154
89,162
561,483
155,984
16,706
59,707
3,508
.5,303
58,345
54,350
316
247,075
41,041
15,124
61,433
257,847
124,764
13,521
46,479
178
24,649
31,419
1,385
5,645
855
198
5,438
4,572
1,500
SO
498
8
590
27
465
(M)j
163,514
47,481
4
20
497
5
37
1,090
8)905
901
151
(14)1
2
90
6,421
28
S3
1,648
366
866
2,377
40
1
'302
5,850
12,895 2,075
958)067 1,157)382 181,617
50
'(14)
119,134
419,868
58)908
26,957
15)078
2)289
3,272
20)453
l)l02
20)996
38
104
10,871
698
63,515
601,045
73,470
22,570
6)659
l)713
2',457
14,740
l)l51
15)524
5
161
5,497
9,241
57,765
42,689
ll)646
14,737
2,315
426
1,480
4)527
95
4,865
53
63
766
49
37,226
43,819
8,913
1,956
852
235
513
1,997
66
2,465
3
222
729
152
613
955
382
117
203,533 261,106 50,878
903)915 1,079)785 172)734
77)597 8,882
54)141
4,919
620
16,915 255,033 80,851 94,364
115,962 1,404,498 328,355 349,927
6,218 265,845 69,182 15,796
1
57
1
26,668
10,039
1,413
7,510
524
354
600
2,456 159,582
4,045
3
10,876
4,090
226,374 327,970
267,750
16,064
8,066
451,984
74,095
*
10,-321
45
5,485
214,311
665
29
1,756
66,127
1,171
10
2,233
55,229
6,374
2,787
5,258
580
693
5,987
1,155
1,085
148
4,445
44
149
557
186
1,238
5,244
90S
224
1,510
6,082
2,115
129
821
75
57
945
175
229
14,589
17,366
7,112
297
11,702
23,578
6,695
585
2,142
2
3
9,499
703
7,204
767
185
1,411
15,622
5,348
575
558
1,912
7
72
70
-
189
11,716
5,045
10,174
. 1,712
858
5,545
42,695
7,540
1,176
5,417
1,284
5,106
261
650
19,747
34,452
4,240
575
339
9,955
6,938
523
1,546
5
1
1 ,9 7 4
1 ,1 2 1
2,643
31,210
3,626
8,188
3,921
1,039
4,081,775 1,126,216 829,559
5,733
21,966 3§/7,137,906 2,405,152 1,724,615
5,688,869 1,831,276 1,135,958
1,042
11,970
34,139
36/279
77,563 56,769
172,022 73,689
54,352 254,282
48,009
145,108
306,877
73,160
155,595
58,916
21,911
50,973
15,154
27,273
49,212
6,016
3,495,901 1,685,985
10,895
37,029
23,865
74,574
602,980 385,726
5,174
1,242
19,547
60,638
[ '686,798 406,514
3,022,076 1,424,762
995,557
4,858
13,284
284,099
769
11,092
295,960
839,998
36/336
708
62
2,031
19
58
2,089
37/2,567
54,281 253,277
758
590
2,707
155
18,899 15,378
68
59
123
2,155
21,112 15,568
33,240 238,715
306,209
2,310
1,216
37,655
49
990
38,695
268,184
56,506
709
3,297
14,921
209
2,569
17,699
41,217
15,137
610
1,962
8,991
25
1,655
10,671
4,483
5,354
571
1,185
5,750
45
927
4,722
1,294
829,041
98,314
280,678
91,461
2,952
222
25,548 254,373
1,426
772
261,042
1,971
8,377
2,034
6,465
9,604
418
13,466
'275
9,634
25^575
30)766
77,559
946
25,687
18)981
248
20,671
59)899
37)697
8,880
482
1,359
2,286
90
1,102
3)479
5,404
6,218
224
2,528
1,361
30
1,795
3,187
3,052
265,829
879
102,548
55,525
279
83,071
156,675
129,168
69,178
1,650
45,593
11,695
618
31,509
43,822
25,559
15,736
851
8,759
5,049
169
6,780
11,998
3,797
1,042
22
687
275
11,586
319
20,554
923
3,789
58
547
338
70,905
4,576
9,934
790
5,382
385
240
1 1 )7 1 2
32,944
Short
term
credit
agencies,
except
banks
289
28
169
2
54,121
1^501
135,575
Invest-^ Other in Security
and
vestment
ment
Finance
trusts companies conmodity- Other
and in including exchange finance not
companies allocable
brokers
vestment holding
and
compa companies 11/ nies 12/13/ dealers
Long-term
credit
Banks and agencies,
mortgage
trust
companies companies,
except
banks
532
8
570
105
117
45
1,489
Amuse
ment,
except
motion
pictures
1,021
16
310
26
2 ,3 4 7
(Money figures in thammle of dollarsi_______________________ ___ ____I_________ j--------
540
821
221
1,117,710
106,671
1 ,6 6 6
Table 2. - Corporation incense and declared value excees-prbfits tax.returns, _1/ 1945, by major industrial groups: Number of returns, compiled
receipts, compiled deductions, oompiled net profit or net loss, net income or deficit, net operating loss deduction, adjusted excess-profits
net income, incase tax, declared -value excess-profits tax, excess profits tax, total tax, compiled net profit less total tax, and dividends
paid by type of dividend - Continued
Mai or industrial groups 7/ Finance, insurance, real estate, and lessors
of real property - Continued
Insurance carriers, seen s. etc.
Lessors
Real
of real
estate,
Total
j
Insurance including property Construc
Insurance
insurance
tion
except
lessors
agents,
carriers
carriers,
buildings
brokers, of
agents,
buildings
etc.
etc.
Number of returns,15/
Receipts:
Gross sales 16/ .
2
Gross receipts free:, operations 17/.
5
Interest on Government obligations
(less amortizable bond premium):
Wholly taxable 18/
4
Subject to declared value excess5
profits tax and surtax 19/
Subject to surtax only 207
6
Wholly
tax-exempt 21/
7
Other interest
8
Rents 22/
9
Royalties 25/
10
Excess of net short-term capital gair
11
over net long-term capital loss 24/
Excess of net long-term capital gain
12
over net short-term capital loss 24/
Net gain, sales other than capital
15
assets 25/
Dividends, danestic corporations 26/
14
Dividends, foreign corporations 27/
15
Other receipts
16
Total compiled receipts 9/
17
Deductions:
Cost of goods sold 28/
18
Cost of operations 28/
19
Compensation of officers
1°
Rent paid on business property
22
Repairs 29/
Bad debts
25
24
Interest paid
25 ' Taxes paid 50/
26
Contributions or gifts 51/
27
Depreciation
Depletion
28
Amortization 52/
29
Advertising
50
Amounts contributed under pension
51
plan, etc.
Net loss, sales «other than capital
52
assets 25/
Other deductions
55
Total compiled deductions
54
55 Compiled net profit or net loss (17
less 54)
56 Net income or deficit 2/ (55 less 7)
57 Net operating loss deduction 55/
58 Adjusted excess profits net income 10/
59 Income tax 5/
40 Declared value excess-profits tax
41 Excess profits tax 4/
42
Total tax
45 Compiled net profit less total tax (55
less 42)
Dividends paid:
44
Cash and assets other than oen stock
45
Corporation's orn stock
1
ft
For footnotes, see pp. 29-50
Continued
Agrioulture. forestry, and fishery
Total
agricul
Agricul
ture,
forestry, ture and Forestry Fishery
services
and
fishery
Nature of
business
not
allocable
7,594
2,002
5,592
88,751
6,284
11,834
6,152
5,657
261
254
5,567
1
2,118,579
230,570
56,058
919,338
3,054
2,348,949
621,962
2,249,765
777,917
153,423
744,549
140,557
9,552
5,142
24,056
7,923
88,714
59,099
2
5
451,549
43,569
451,183
43,330
566
39
5,775
467
2,295
126
1,913
125
685
401
621
399
53
S
28
-
156
7
4
5
866
48,821
860,582
115,955
100
1,814
860
48,791
858,365
114,393
35
1,622
69
5
739
30
2,017
29,804
1,560 1,124,327
65
3,255
192
3,505
4
117
1,912
144,149
66,516
182
12
293
2,204
11,958
398
1,264
'5
155
2,819
10,866
5,289
518
4
149
2,605
10,432
5,091
267
57
1
7
3
122
1,765
5,520
405
255
6
7
6
9
10
11
52,507
51,501
8,389
15,718
16,498
14,026
1,847
624
3,257
12
661
45
994
15
487
521
127,115
1,358
15,609
4,028,858
125,697
1,179
5,796
5,779,255
-
1,206
165
66,179
64,759
5,419
16,623
158
170
52,368
9,812
249,604 2,523,457
2,221
1,652
12,610
1,593
11,545
993,575
12,530
1,592
10,590
941,758
55
27
422
18,550
355
35,085
905
5
7,060
166,225
14
15
16
17
528,030
67,166
46,071
8,729
14,026
1,258
8,400
22,904
1,375
27,185
1,676
«4
5,654
1,694
502,518
59,855
44,427
8,459
15,028
1,072
7,525
21,692
1,537
26,134
755
65
5,595
1,655
8,564
2,981
588
53
152
118
692
782
6
515
857
1
3
19
17,548
4,550
1,056
217
866
48
184
450
32
757
4
«
56
21
69,528
20,174
16,550
5|265
1,767
1,584
2,589
5,702
177
5,567
236
125
1,529
210
*8
19
20
21
22
25
24
25
26
27
28
29
50
51
5,611
4,101
1,359
151
5,757
52
784
6,872
6,184
5,582
3,390
1,251
532
52,545
19*361
188
9,911
19,175
585
46
149
475,498
1,861,551
150,123
14,271
18,705
3,693
8,688
33,219
1,899
35,244
571
1,988
6,044
5,012
6,195
145
98,224
11,470
2,992
6,338
-
2,269,957
2,155,886
55/2,533,303 35/2,311,287
1,467,966
1,495,555
-
114,071
656,662
222,016 2,044,077
279,360
27,589
h
1,762
11,299
597
15
8,767
50,445
238,051 2,947,955
19,415
58,953
117,141
92,350
100,954
8,645
284,309
527,722
3,129
265,849
675
1,220
7,779
1,090
1,271
54/11,221
14,558
1,565
906
3,088
81,576
1,433
20,546
10
5
194
597
. 198
44
946
38,547
49,180
8,091
601
1,046
1,063
4,066
590
1,412
6
4
2,425
970
-
59,619
54/60,402
22,628
2,164
1,952
4,151
85,642
2,023
21,958
16
4
9,296
7,154
im m
2,270
-
237,741
28,941
155,373 2,855,040
112,913
82,678
119,683
859,406
155,967
114,225
812,199
129,559
1,775
18,024
506
5,685
29,183
5,902
33,450
161,767
4,456
53
54
35
1,446,734
2,064
12,353
75,659
157
10,340
86,157
1,409,598
1,419,175
1,672
8,810
68,390
39
7,459
75,887
1,592,079
27,559
393
3,542
7,270
119
2,881
10,270
17,519
278,621
22,949
27,424
108,465
1,699
21,479
151,645
147,717
82,561
1,121
10,952
33,150
76
9,273
42,479
40,199
112,620
5,773
42,036
28,480
1,042
32,611
62,134
50,780
153,815
2,412
41,615
52,848
651
50,249
65,727
70,240
129,409
2,155
39,626
31,473
615
28,695
60,739
68,780
501
129
55
690
6
28
724
57/218
5,902
151
1,955
685
12
1,528
2,224
1,678
4,554
891
2,022
5,492
115
1,755
5,562
37/906
56
57
58
59
40
41
42
45
128,890
6,041
117,195
5,905
11,695
136
96,096
2,255
65,685
61
29,470
3,212
27,584
975
25,995
959
1,585
*
207
16
5,501
197
44
45
I
Table 5* — Corporation income and declared value excess—profits tax returns with balance sheets, 1/ 1945, by major Industrial groups, for returns with net income and returns with no net incomes 2/ Number of returns,
assets and liabilities, compiled receipts, compiled deductions, compiled net profit or net loss, net income or deficit, and dividends paid by type of dividend) also, for returns with net incomes Net operating loss
deduction, adjusted excess profits net income, income tax, declared value excess-profits tax, excess profits tax, total tax, and compiled net profit less total tax
All industrial groups
« u.inn«
1 one
1
lumber of returns' with balance sheets 38/
issetss
Cash 39/
3
Notes and accounts receivable
Least Reserve for bad debts
4
S Inventories
6
Investments, Qoverrment obligations 40/
Other investments
7
8
Gross capital assets 41/ (except land)
Less: Reserves
9
Land
10
11 Other assets
Total assets 42/
12
liabilitiest
Accounts payable
13
Bonds, notes, mortgages payable!
14
Maturity less than 1 year
Maturity 1 year or more
15
16
Other liabilities
Capital stock, preferred
17
Capital stock, comnon
18
Surplus reserves
19
20 Surplus and undivided profits 45/
Less: Deficit 44/
21
22
Total liabilities 42/
ieceipts:
23 Gross sales 16/
Gross receipts from operations 17/
24
Interest on Government obligations (less amortizabl
bond premium)t
Wholly taxable 18/
25
26
Subject to declared value excess-profits tax and
surtax 19/
27
Subject to surtax only 20/
Wholly tax-exempt 21/
28
Other interest
29
Rents 22/
30
31 <Royalties 23/
hxciss of net short-term capital gain over net
32
long-term capital loss 24/
Sxcess of net long-term capital gain over net
53
short-term capital loss 24/
Net gain, sales other than capital assets 25/
34
Dividends, domestic corporations 26/
35
36
Dividends, foreign corporations 27/
Other receipts
37
Total compiled receipts 9/
38
2
wo neu income
281,244
95,708
55,674,440
49,799,069
591,977
24,463,783
128,083,516
70,314,871
121,052,668
48,496,525
6,678,194
8,882,202
415,860,443
2,042,560
2,474,470
51,955
1,603,460*
1,851,521
3,711,045
17,390,965
6,171,661
1,603,405
1,147,016
25,600,826.
15,398,527
2,056,453
(Money figures in thousands of dollars')
Major industrial groups 7/
_____ _______________________________________ ining and Quarrying
Total mining and
Anthracite
Bituminous coal,
Crude petroleum and . Nonmetall .c mining Mining and quarry
Metal mining
ing not allocable
___quarrying_____
___ mining_____ lignite, neat. etc. natural gas production and auarr¡ring
Net
No net
Net
Net
No net
No net
Net
No net
Net
No net
Net
No net Net
No net
income
income
income
income
income
income income
income
income
income
income
income
income
3,444
2,950
194
489,145
66,718
159,221
412,626
88,008
97,660
616
6,131
2,716
260,711
107,660
45,755
473,903
43,682
210,918
518,480
104,247
178,791
4,355,563 1,605,126 1,062,130
2,407,869
675,612
784,282
. 71,929
65,979
5,702
121,014
41,238
41,298
4,289,372 1,273,756 1,187,152
324,079
112,894
68,274
6,099,546
33,434,016
216,369,216
13,416,667
57,692,498
10,462,884
66,866,479
3,879,390
415,860,443
108,924
1,108,803
56,518
10,942
7,555,159
293,682
256,575
33,970
4,916,375
250,334
80,010
81,039
1,346,974
45,162
149,990
38,363
7,054,902 1,290,248
288,316
607,319
593,757
182,595
61,180
76,432
5,661,764 1,884,852
352,189 ,636,922
4,691,362
195,332
313,342
31,854
25,600,826 4,289,372 1,273,756 1,187,152
191,286,396
34,932,518
10,259,372 2,757,398
4,977,597
420,435
441,540
121,125
608,464
27,396
65
66
Cost of goods sold 28/
Cost of operations 28/
Compensation of officers
Rent paid on business property
Repairs 29/
Bad debts
Interest paid
Taxes paid 30/
Contributions or gifts 31/
Depreciation
Depletion
Amortization 52/
Advertising
Amounts contributed under pension plan, etc.
Net loss, sales other than capital assets 25/
Other deductions
Total compiled deductions
ompiled net profit or net loss (38 less 55)
et income or deficit 2/ (56 less 28)
et operating loss deduction 33/
djusted excess profits net income 10/
ncome tax *3/
eclared value excess-profits tax
xcess profits tax 4/
Total tax
ompiled net profit less total tax (56 less 65)
lvldends paid:
Cash and assets other than own stock
Corporation's own stock______ ______________
footnotes, see pp. 29-30,
84
21,499
17,687
7,143
2,133
33,324 54,022
19,523 17,242
3,629 12,940
218,950 96,353
7,976
12,213
111,972 131,093
61,761 18,286
366,493 521,161
70,071 274,221
3,991 25,199
59
871
1,495
127,335
149,607
3,425
46
2,898
867
51,671
697
110,578
738
145,169
20,607 1,119,140
10,672
552,022
157
18,865
722
21,323
17,970 1,186,768
5,611
77,436
472
1,569
8,497
122,197
15,883
103,099
966
193
8,169
55,740
4,961
77,620
8,910
148,206
214,659 1,444,335
104,801
811,782
14,362
25,549
4,666
32,059
175,093 1,196,057
26,504
142,216
1,348
708
32,119 56,101
45,267 35,943
2,249
692
19,621 36,299
15,891 51,573
64,914 25,984
775,405 335,554
379,091 177,396
12,691 17,174
16,371 13,143
600,938 393,684
49,277
18
102
1
5,983 1,221
7,825
512
185
8
4,158
265
2,*294
542
6,537
178
114,364 2,535
56,839 1,460
4,884
635
4,416 _ 151
93,237 «,549
460
563
779
17
506
17
1,675
16,126
1,830
1,552
656
20,025
2
3
4
5
6
7
8
9
10
11
12
18,119
8,941
347
1,061
13
1,797
28,153
7,143
59,705
2,852
79,124
39,941
101,624
2,835
76,067
11,779
56,945
857
50,824
8,683
45,966
5,068
371,516
67,626
402,289
805
40,878
3,976
41,080
3,685
41,651
527,643
436,383
5,540
44,872
32,212
90,152
17,970 1,186,768' 175,093 1,196,057
55,588
7,920
159,156 24,803
39,188 18,721
21,599 21,768
256,449 130,668
55,033 31,459
168,232 150,265
183,583 10,039
600,938 393,684
4,486
19,499
5,727
9,896
40,601
2,313
23,300
21,526
93,237
72
159
320
130
1,106
22
2,545
131
4,549
360
1,803
957
498
18,625
2,092
5,549
8,721
20,025
14
15
16
17
18
19
38,746 1,202,677
11,803
103,662
160,036 279,740
46,907 26,245
38,388
7,777
2,135
2,077
338
295
23
24
133,961
50,354
390,164
235,855
20
21
22
1,467,638
295,228
22,872
4,850
5,817
517
478
46
3,193
122
241
27
293
24
14
2
1,135
146
58
11
670
170
145
4
521
56
20
1
4
-
'5,396
200,978
2,149,359
1,957,974
228,882
38,121
87
4,728
57,040
318,867
19,062
4,350
28
.184
5,250
20,591
21,319
1,032
1
97
772
3,295
3,888
389
(14)..
61
1,485
939
1,710
248
1
6
89
579
95
1
(14)
3
345
4,552
7,323
9
_
(1*)
7
35
16
(14)
23
32
1,867
10,725
6,518
46
■_
2
202
1,486
1,206
4
2
56
1,301
2,876
4,834
680
(14)
60
388
845
2,530
380
3
32
247
1,457
925
50
(14)
29
81
344
33
3
5
43
10
‘_
4
6
7
1
27
28
29
30
51
32
32,407
37,183
4,522
3,966
236
5,746
40
3,708
291
24,667
3,768
1,073
156
24
31
33
17,901
1,905
20,788
29,922
1,925
427
135,429
24,701
15,886,409 3,317,576
1,321
780
(14)
7,599
*585,853
5
7,974
286
5,819
661,669
41
98
38
111
(14)
(14)
2,003
1,852
77,420 317,775
91
4
283
5,239
97
240
6,088
50,999 1,340,245
71
116
1,222
188,983
1,444
8,270
44
8,515
679,547
967
73
571
1,194
(14)
1
3,413
2,364
220,016 313,980
148
52
(14)
677
47,710
(14)
(14)
_2
34
35
36
37
58
50,877 233,507
427,635
35,830
946,409 116,311
3,386 18,189
15,049
10,140
75,348
41,671
656
13,069
2,181
3,248
1,023
2,031
3,864
336
332
4,321.
1,535
1,404
3,947
169
1,931
9,412
26,534
2,329
478
106
621
4,442
112
337
2,672
150
990
2,520
4,286
1,614
22,680
900
4,501
9,345
50,014
4,762
2
955
28
141
920
18
.15,797
6,175
6,042
1,462
35,065
5,628
44,049
4,916
7,130
36,477
224
2,565
_
11,266
2,158
1,365
3,041
994
188
135
908
550
25
97
903
so
306
2
488
41
44
1,827
615
5
2,098
2,043
25,648
8,650 14,347
2,910
79,484
14,942
582,386
87,096 307,509
52,911 1,259,083 196,958
79,283 56/9.676 10,266 36/1.915
81,162 ¿6/7,955
79,222 36/9.682 10,263 36/1.913
81,129 ¿6/7.957
—
—
501
520
1,151
2,498
895
13,566
_
24,105
2,944
24,465
•
54
10
91
am
2,136
596
10,965
_
•
26,295
3,551
35,521
52,988 36/9,676
6,715 ¿6/1,913
45,640 ¿6/7,955
194,622
151,943
11,243
7,378
5,685
494
5,199
18,905
599
40,371
67,842
5,206
1,051
3,074
1,141
80,997
595,751
83,796
83,740
933
8,377
23,788
76
6,636
30,501
53,295
803,489
157,348
1,371,298
132,008
1,743,488
236,749,921
^eductionst
39
40
4l
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
65
64
509
18,061 23,070
14,828 25,805
26
950
9,076
12,434
19,822 22,672
21,695 22,151
463,986 391,869
231,048 189,597
4,006
32,333
14,407 13,059
366,493 321,161
147,423,456
8,404,446 1,969,144
320,319
19,212,127
3,147,342
278,738
87,989
jSJt/3,672,756
38,716
54/361.608
11,792
2,208,831
306,081
19,034
5,503
2,542,161
254,802
56,405
7,906
216,458
52,694
6,294
1,420
1,923,125
334,911
16,033
9,681
5,014,534
499,194
89,420
19,221
261,487
2,095
2,990
126
3,489,348
431,558
109,187
35,134
597,871
168,235
81,553
41,189
1,630,140
21,491
301,321
6,562
1,812,705
93,912
3,350
377
741,348
22,304
5,199
856
209,736
205,504
4,820
6,088
25,847,936
2,313,507
231,530 •82,471
¿5/214,604,019 55/16.812.650 3,020,584
636,635
22,145,902
56/926,221
296,993 36/50,781
21,944,924
56/930.949
296,809 36/50.878
109,185
—
3,623
8,245,384
38,433
*4,159,896
85,650
53,740
341
6,508,046
31,371
as.
117,362
10,701,683
11,444,219
¿6/926,221
179,630 56/50.781
5,861,849
526,544
147,259
5.113
142,728
1.844
13,251
64
51,023
90
1,050
-
6,454
-
43
-
25,997
392
2,848
41,185
625
(14)
(14)
*
64
4,361
44
726
87,463 165,817
29,471 1,154
27,262 16,687
5,383 1,522
5,689
8,983
2,150
142
3,047
1,936
374
3
1,301 10,747
2,161
80
717
259
124
1
5,784
1,082
1,311
46
7,856
8,417
1,158
59
71
372
7
2
18,923 11,780
2,859
132
33,231 12,427
224.
310
1,835
538
1,575
73
61
647
7
61
697
67
417
h
1,398
917
128
5
49,719 30,751
5,845
304
245,053 272,004
52,668 3,850
¿6/25.037 41,976 56/4.958
511
¿6/25.096 41,944 56/4r987
511
•
508
10
_
15,053
65
10,192
156
«
«
•
110
10,985
54
_
210
21,285
¿§/25,0S7 20,691 ¿6/4,958
501
367
147
92
9
15
24
61
45
(14)
68
29
9,147
58
17,844
737
155
6
225
(14)1
688
405
1,970
¿6/1.244.
36/1,244
•
_
•
«
36/1,244
8
25
26
39
40
41
42
45
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
65
6i
65
66
table 3. - Corporation income and declared value exceea-profits tax return# with balance sheets/¿/ 1945, by major industrial groups, for returns with net income and returns with no net incomes 2/ Number of returns,
assets and liabilities, compiled receipts, compiled deductions, compiled net profit or net loss, net income or deficit, and dividends paid by type of dividend; also, for returns with net incomes Net operating loss
deduction, adjusted excess profits net income, income' tax, declared value excess-profits tax, excess profits tax, total tax, and compiled net profit less total tax - Continued
(Money figures in thousands of dollars)
Total manufacturing
No net
Net
1
2
3
4
5
6
7
8
9
10
U
12
13
14
15
16
17
18
19
20
«2221
23
24
25
26
27
28
29
30
31
32
33 *
34
35
36
37
38
39
40
a
.42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
Food and kindred
Droducts
No net
Net
income
Beverages
No net
Net
income in00 me
Tobacco
manufactures
Net
No net
income income
Cotton
manufactures
No net
Net
inccae income
Net
Income
No net
income
Apparel and products
made from fabrics
Net
No net
income
income
Leather and
nroducts
No net
Net
income income
Rubber products
No net
Net
Income Income
86
272
357
1,736
3,088
6,285
1 ,0 4 7
21
396
50
2,018
1 ,3 6 8
754
.458
175
6,776
1 5 ,3 7 1
imber of returns with balance sheets 38/
59,844
isetss
178,658
2,596
3,352
148,314
6,646
5
,7
2
9
256,379.
397,918
62
6
,
4
3
2
1
7
0
,1
2
3
261,602
8,285
88,113
10,577,786
887,003
2 4 ,7 2 4
692,158
Cash 22/
7,799
5,474 289,339
8 ,0 0 7
157,047
257,091
6,225
2 ,3 1 2
355,055
898,278
74 164,987
834,681
199,565 12,703 301,813
13,037,061
4 1 ,2 9 3
Notes and accounts receivable
11,880
200
85
97
5,274
9,241
11,020
321
212
2,621
800
22,786
a
8,442
3
2,873
19,260
283,522
Lesss Reserve for bad debts
9,456 335,999
461,826
7,893
1 2 ,6 4 9 324,943
9,578
741,685
3 ,4 2 9
473 485,829
62,874 498,628 58,566 1,140,873
16,179,819 1,076,440 1,639,552
Inventories
122,378
1,143
213,735
161,348
1,619
1,311
2,569
403,694
17,901
2
,
7
5
4
4,750
203,985
5
275,008
19,851
670,104
229,943
10,741,069
Investments, Government obligations 40/
2,679
1,603 123,795
1,738 53,699
1,690
83,105
1,588 223,306
1 109,043
15,478 171,278
85,649
4,559
366,698
673,577
9,693,472
Other investments
11,892 859,715 26,301
274,172
12,214 271,820
22,615
238 1,082,985
9 , 2 7 4 .,541,418
47,733,459 4,337,104 3,829,526 212,863 888,651 58,788 247,761
Gross capital assets dl/ (except land)
14,692
5,320
4,148
517,463
156,409
141,693
856,615 12,004
66 650,027
4 ,2 9 1
99,068 386,530 19,664 105,818
26,413,611 2,310,644 1,936,943
Less: Reserves
736
227
16,525
471 13,726
14,529
1,195
53,571
25,011
438
9,136
65,638
17
21,169
5,413
199,948
1,598,372
251,247
Land
1,178
29,166
1,376
2,371 27,255
1,956
49,503
86,561
20,088
4,476
32,969
745
59
283,632
17,829
94,731
186,507
2,430,585
Other assets
39,278 957,499
30,444 ,517,589 35.548
40.150 1,407,020
860 1,622,034 22,638
85,294,490 5,735,766 7,076,064 316,214 2,015,064 137,663 1,802,896
Total assets 42/
Labilities:
4,544
5,503 141,669
191,755 ’ 6,951 97,212
6,477
88,548
142
43,186 165,867 33,769
1,114 202,713
66,492
569,023
625,903
7,696,249
Accounts payable
Bonds, notes, mortgages payable:
2,648
9,785
5,064
1,973
76,932
27,129
466
77,946
2,439
70,734
21,816
197
59,349 19,594 273,498
218,585
2,412,436
321,584
Maturity less than 1 year
6 ,1 6 4
1,057 188,312
47,938
4,083 36,669
6,721
121
5,357 161,767
46,239
4 8 ,8 6 4
8,145 329,131
550,819
240,474
687,327
5,697,403
Maturity 1 year cr more
254,212
85,829
1,673
1,523
174,607.
3,995
2.573
295,054
76 154,157
1,553
99,907
9,056,990
17,559 282,564 17,695
381,869
615,744
Other liabilities
2,273
1,777 227,492
1,613 79,001
1,981
1,380 272,479
87,763
84,542
25
2,535 198,105
406,792
19,994 113,712
5,652,512
625,424
Capital stock, preferred
270,490
15,028
251,500
8,337
10,999
327,335
717,350
17,293
386
9,051
424,129
21,031,483 1,354,347 1,881,048 107,496 337,323 33,215 429,209
Capital stock, common
1,180
482 66,673
1,311
97,924
60,683
381
- 148,346
3,457 194,875
33,758
219,580
5,099 102,120
671
5,822,040
479,717
Surplus reserves
9,664
449,828
9,937 345,503
7,105 327,114
8,577
36 616,118
4,832 ,056,189
81,123 725,307 32,696 373,642
28,456,727 2,123,909 2,195,801
Surplus and undivided profits 43/
17,796
1,065
9,822
5,042
13,629
3,505
42,800
6,292
4,572
10,778
847
124
11,651 10,657
60,097
28,924
385,545
531,349
Less: Deficit ¡¡¡¡Z
39,278 957,499
1,407,020
30,444 ,517,589 35.548
40.150
22,638
860
1,802,896
1,622,034
5,735,766
2,015,064
137,663
7,076,064
316,214
85,294,490
Total liabilities ¡¿/
sceipts:
95,976 2^11,801
47,195 ,219,201 59,991
63,810 3,713,510
124,876,085 7,205,410 18,013,627 907,219 4,209,928 149,745 2,203,232 2,395 2,683,165 29,478
Gross sales 16/
320
44,532
13,728
-443
9,084
89,392
72 149,579
3.573
19,366
4,282
8,812
104,020
11,163
954
449,237
5,469,417
Gross receipts from operations ¿2/
Interest on Government obligations (less
amortizable bend premium):
1,426
2,515
25
23
1,553
30
4.295
2,058
25
176
1,866
105,804
5,897
133
3,379
Wholly taxable 18/
48
61
1
134
72
(14L
85
640
(ur
125
10,530
19
115
375
Subject to declared value excess-profits
V
»
T}
'
“I
tax and surtax 19/
2
4
2
1
«
4
2
9
12
7
(14)
439
3
Subject to surtax only 20/
(14)
5
61
57
2
136
98
*
36
77
804
7
6,401
141
235
Wholly tax-exempt 21/
948
13
29
793
1,374
3,156
24
16
1,654
170
(14)
7
9
7
220
114,186
9,975
2,934
5,289
Other interest
4,040
86
1,336
31
2,634
170
5,892
2
7,381
54
681
2,855
1,342
191,356
17,803
4,711
14,293
Rents 22/
1
2,114
22
109
4,117
8
32
894
*
3,768
4
7
87,252
49
405
2,694
Royalties 23/
6
86
30
66
14
191
70
11
2
*
378
9
91
3,527
*
448
Excess of net short-term capital gain over
net long-term capital loss 24/
742
1,301
33
46
1,504
26
6,343
6
,
0
1
9
977
11,401
4.7901
307
283
193,094
8,531
Excess of net long-term capital gain over
net short-term capital loss 2jJ
7
50
17
86
30
206
2 (14) 1
5
153
161
1,666
590
4,678
289
193
Net gain, sales other than capital assets 25/
26
1,530
22
1,569
1,710
5,597
6,218
35
3,558
3,598
134
20,223
119
349,205
5,875
Dividends, domestic corporations 26/
6,552
84
39
794
- 91
39
647
75,928
107
1,291
6,754
(14)
Dividends, foreign corporations 27/
9,902
307
9,904
353
12,759
22,280
180
12,119
107,802
3,627
17
11,285
1,977
16,483
51,910
915,407
Other receipts
2,137,662
47,968 3,292,146
132,403,309 7,751,618 18,302,619 ' 929,815 4,256,595 154,221 2,220,371 2,414 2,738,517 29,983 4,786,835 68,137 3,828,942 110,347
Total compiled receipts 9/
eductions:
40,911 ,455,452
80,054 1,727,413
2,909,564
95,774,047 5,965,051 14,906,777 834,059 2,647,404 124,765 1,836,330 2,010 2,162,903 24,864 3,583,814
Cost of goods sold 28/
298
248,
9,463
5,641
66,546
16
98,363
261
8,054
5,220
4,402
340,821
479
3,944,236
43,757
Cost of operations 28/
15,660
2,039
45,440
6,437
128,442
91,559
24,586
491
40,060
72
8,140
6,315
3,495
1,579,688
136,723
U0,569
Compensation of officers
10,503
465
1,67; 10,549
27,853
16,318
9
6
28
2,256
8,876
3,066
45,896
1,777
971
540,103
43,723
Rent paid on business property
48,249
427
8,812
395 15,049
56,656
551
33,904
7
832
3,153
1,856,406
176,550
33,674
186,939
7,511
Repairs 29/
426
13
556
105
• 1,049
1,345
7
1
307
860
1,756
255
173
12,827
52,609
5,299
Bad debts
8,670
174
3,127
5,882
4
8
5
2
4
0
13,147
6
15,286
5,503
11,486
1,154
37,546
2,879
404,778
37,289
Interest paid
74,908
.
570
23,364
1
,
4
3
!
41,516
65,185
39,410
387
52
5,966
97,201
7,972 621,823
2,605,030
186,733
144,653
Taxes paid 30/
2,160
12
25
2,949
6,335
9,592
1
6,430
81
5,626
32 - 1,401 (14)'
147,969
894
12Î395
Contributions or gifts 31/
336
32,954
734 10,702
13,635
372
57,679
33,834
25
2,310
6,567
7,824
a, 574
153,172
1,655,097
148,223
Depreciation
173
56
(14)
17
16
29
15
34,166
607
41
387
382,754
Depletion
82,533
213
9<
431
6,203
4,582
“
2,906
1,031
1 ,1 0 2 ,5 0 1
1,924
7,647
167,047
Amortization 32/
I
6
6
29,453
12,521
376
25,058
21,524
31
6,147
29
2,760
4,083
45,707
91,815
198,740
1,089,470
57,987
Advertising
3,712
20
3,455
45
4,138
8,467
3,160
*
656
2,223
1,069
6,345
Amounts contributed under pension plan, eto.
13,983
35,053
445,984
4,228
29
336
5<
652
4.296
4,888
•
995
170
3,811
58
83,788
32,186
15,350
5,141
Net loss, sales other than capital assets 25/
4,062 575,217
12,700
139,565
345,221
300,281
2,435
63,612 317,496 16,886
63,555
315 128,872
746,881 1,333,745
10,247,148
Other deductions
,044,594
49,471
2
,
0
0
0
,
9
3
7
114,094
3,585,150
Total compiled deductions
121,911,609 8,063,952 17,305,056 952,158 3,839,660 162,893 2,080,202 2,544 2,460,956 34,399 4,334,456 26/2
243,791 26/3,746 136,725 26/1.503 247,552
Compiled net profit or net loss (38 less 55)
997,563 26/22,343 416,936 ¿6/8,670 140,170 ¿6/130 277,561 26/4,416 452,379
10,491,699 ¿6/312,334
243,731 2/3,746 136,667 2/1,503 247,546
10,485,298 26/312,475
996,759 2/22,379 416,701 ¿1/8,677 140,093 ¿S/130 277,463 2â/4,4l6 452,243 3Ì/2
let income or deficit 2/ (56 less 28)
92
“
361
904
1,437
.
291
112
1,677
let operating loss deduction 33/
3,015
29,759
“ 170,861
62,326
126,505
245,158
172,558
13,268
230,070
432,642
5,208,460
Adjusted excess profits net income 10/
30,243
28,322
*
41,417
81,290
41,099
me
49,105
73,609
1,933,090
220,714
Income tax 3/
535
652
*
1,676
1,472
491
20
•
2,037
29,858
4,067
Declared value excess-profits tax
7 138,822
48,179
95,055
188,612
135,535
179,462
10,843
323,468
4,101,086
169,601
Excess profits tax 4/
•
77,154
138,148
271,374
177,125
255,108
59,969
548,249
Total tax
6,064,034
77,951 2éA,735
105,643 ¿6/3,746 59,571 ¿6/1,503
80,201 26/130 100,436 ¿6/4,416 181,004 2é/2,757
449,314 ¿6/22,343 161,828 2é/8,67C
Compiled net profit less total tax (56 less 63)
4,427,665 2Ê/312.334
Dividends paid:
568
39,053
177
26,942
4
6
25,613
80,834
38,938
64,819
256,622
25
1,729
15S
59
72,054
Cash and assets other than own stock
2,740,109
60,919
4.706
77 __ 22«
6.971 ___ &
U.833
2.02:
78
11.329
281
4,148
Corporation's own stock________________ -i__ 143.174 ______ 2*22
2
For footnotes, w pp. 29-50*
1
2
3
4
5
6
7
8
9
10
U
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
U
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
Cash and »...t. othwr than Own .teck
r C o r p o r a t i CP.’ » own » to o k
I
.
I .
Y-OZti
W » t7 M
‘« " I
1*4*2*71
^
78l
-I
U.U»l_____ d-- U jSJJÍ
■■
Table 3. - Corporation income and declared value excess-profits tax returns with balance sheets, 1/ 1945, by major industrial groups, for returns with net income and returns with no net income: 2/ Number of returns,
assets and liabilities, compiled receipts, compiled deductions, compiled net profit or net loss, net income or deficit, and dividends paid by type of dividendi also, for returns with net income: Net operating loss
deduction, adjusted excess profits net income, income tax, declared value excess-profits tax, excess profits tax, tótal tax, and compiled net profit less total tax - Continued
(Money figures in thousands of dollars)_______ _________
Major industrial groups 7/ - Continued
Manufacturing - Continued
Petroleum and
Chemicals and
Paper and allied Printing and pubLumber and timber FumitUre and fincoal products
lishine industries allied products
products
basic products ished lumber products
No net
Net
No net
Net
Net
No net
No net
No net Net
No net
Net
Net
income
income
income income
income
income
income
income
income
incoine
income
income
1 dumber of returns with balance sheets 58/
issets:
Cash 59/
2
Notes and accounts receivable
3
Less: Reserve for bad debts
4
Inventories
5
Investments, Government obligations 40/
6
7
Other investments
Gross capital assets 41/ (except land)
8
Less: Reserves
9
Land
10
Other assets
11
Total assets 42/
12
Liabilities: '
13
Accounts payable
Bonds, notes, mortgages payable:
Maturity less than 1 year
14
Maturity 1 year or more
IS
16
Other liabilities
Capital stock, preferred
17
Capital stock, common
18
Surplus reserves
19
Surplus and undivided profits 43/
20
Less: Deficit 44/
21
Total liabilities 42/
22
Receipts:
Gross sales 16/
23
Gross receipts from operations 17/
24
Interest on Government obligations (less
amortizable bond premium):
Wholly taxable 18/
25
Subject to declared value excess-profits
26
tax and surtax 19/
Subject to surtax only 20/
27
Wholly tax-exempt 21/
28
Other interest
29
Rents 22/
30
Royalties 25/
31
32 'Excess of net short-term capital gain over net
long-term capital loss 24/
Excess of net long-term capital gain over net
35
short-term capital lose 24/
Net gain, sales other than capital assets 25/
34
Dividends, domestic corporations 26/
35
Dividends, foreign corporations 27/
36
37
Other receipts
Total compiled receipts 9/
38
Deductions:
Cost of goods sold 28/
39
Cost of operations 28/
40
Compensation of officers
41
Rent paid on business property
42
Repairs 29/
43
Bad debts
44
Interest paid
45
46
Taxes paid 30/
Contributions or gifts 31/
47
Depreciation
48
Depletion
49
50 Amortization 32/
51 Advertising
52 Amounts contributed under pension plan, etc.
Net loss, sales other than capital assets 25/
53
Other deductions
S4
Total compiled deductions
55
56 Compiled net profit or net loss (58 less 55)
57 Net income or deficit 2/(56 less 28)
58 Net operating loss deduction 33/
59 Adjusted excess profits net income 10/
60 Income tax 3/
Declared value excess-profits tax
1 Excess profits tax 4/
Total tax 63
64 Compiled net profit less total tax (56 less 63)
Dividends paid:
Cash and assets other than own stock
65
66
For footnotes, see pp. 29-30,
1,527
625
3,012
145,076
126,013 10,639
154,999
120,327 15,737
3,408
800
6,935
249,076
153,272 19,678
134,683
5,'578
137,028
7,616
85,967
113,096
481,134
854,748 114,927
359,546 50,735
260,511
47,396 12,144
52,295
33,167
52,598
6,358
1,239,179 141,142 1,051,295
60,603
15,251
76,908
717
1,820
8,393 308,192
16,473 297,061
* 597 *11,281
23,801 409,250
3,749 554,049
5,408 378,766
46,764 2,009,859
22,579 1,100,905
62,799
3,909
78,740
4,964
90,284 2,766,531
11,724
152,506
226
7,636
5,224 443,361
6,926 474,217
18,194
294
10,379 267,386
3,201 460,786
28,962 527,525
52,483 1,523,350
24,486 662,731
1,112 100,659
3,951 109,479
87,458 3,225,839
5,930
227,115
1,615
4,253
5,808 1,003,167
14,807 831,130
929
29,513
7,215 1,290,649
1,087 830,753
4,740 1,610,518
34,390 3,818,062
16,318 2,097,339
1,404 134,619
3,783 165,915
55,989 7,557,961
12,984
492,934
1,551
506
883,803
46,808
994,508
54,464
1,201
9,460
79,984 1,024,983
45,404
910,508
77,538 1,679,596
380,870 11,013,134
210,677 6,035,627
233,224
8,495
252,138
22,427
504,111 10,946,807
46,215
652,750
124
Stone, clay, and
glass products
Net
No net
income
income
1,905
749
49,952 256,315
73,498 214,636
7,984
1,959
90,685 272,338
34,422 326,499
39,630 142,609
941,881 1,362,130
492,529 766,187
40,814
49,827
54,662
17,907
794,302 1,904,845
12,573
18,858
2,391
24,002
7,017
6,673
216,686
110,652
9,730
6,533
189,029
59,305
106,021
Iron, steel, and
products
Net
No net
income
income
4,982
1,342
Nonferrous metals
and their products
Net
No net
income
income
1,814
525
1
1,546,088 109,108 279,912
1,639,611 154,261 355,980
38,057
3,789
8,485
2,101,063 220,199 567,411
65,204 358,039
1,978,211
59,096 334,896
1,347,615
8,051,160 968,405 2,319,097
4,581,520 554,751 1,505,543
56,939
25,465
194,610
79,434
382,682
48,659
12,621,463 1,103,332 2,806,205
5,859 2
12,265 3
534 4
12,732 5
3,957 6
2,749 7
40,452 8
18,004 I 9
1,664 10
5,390 11
66,530 12
204,576
8,626 13
14,859 1,251,461
104,567
14
15
16
17
18
19
20
34,981
39,408 12,236
57,647 23,406
37,231
106,058
88,367 14,351
2,957
67,271
41^355
512,927
495,526 57,975
2,186
48,534
43,320
384,142
473,940 45,455
11,542
66,200 30,656
1,239,179 141,142 1,051,295
10,239
49,512
8,879 272,012
6,157 223,734
6,105 405,959
36,345 658,695
1,644 118,013
26,450 905,745
17,643
17,258
90,284 2,766,551
4,852 100,378
14,103 215,942
2,040 487,387
2,520 203,811
21,163 739,964
20,513 157,189
20,010 1,144,924
3,674
50,871
87,458 3,225,839
5,402 187,012
11,874 374,184
10,138 686,452
3,413 644,219
24,473 2,090,397
895 470,847
9,684 2,640,478
22,873
28,563
55,989 7,557,961
96,062
29,089
65,981 1,492,425
30,396
352,263
332,147
56,539
121,848 3,657,341
660,634
49,958
168,275 3,708,912
5,727
64,190
504,111 10,946,807
45,489
20,680
75,517
119,466
51,935 139,989
69,391 133,776
249,559 649,068
94,146
16,319
234,644 692,551
6,996
29,711
794,302 1,904,845
42,423
9,763
268,554
67,573
681,158
a,927
98,320 161,646
52,089 233,674
9,010 1,296,008
20,777
847,023 139,288 250,660
83,955 2,656,224 288,127 939,688
5,562
744,595
46,834 144,845
52,389 4,903,215 362,393 812,186
29,213
26,775
30,708
8,643
189,029 3.2,621,463 1,103,332 2,806,205
1,216,706 135,839 1,817,914
4,590
15,918
29,107
131,591 3,416,656
683
7,263
71,938 3,390,647
495 234,343
69,216 8,784,506
21,093 338,403
530,962 8,352,152
559,134
6,979
706,221 2,140,829
52,589
10,391
131,089 16,387,852 1,383,155 3,716,535 120,508 23
5,061
434,571
84,168
11,018
4,765 24
1,650
70
53
2
1,434
171
14
109
1,581
4,253
2,265
187
(14)
(14)
129
620
79
89
15
178
880
2,406
162
69
37,582
1,244
3,577
634
188
152
16 . 1,527
2,709
(14)
'329
53
10,690
11,969
1,685
1,308^888 144,336 1,855^424
904,267 115,838 1,363,830
17,584
3,553
10j519
55,839
27^260
4,272
9,585
3,293
505
21,997
1,489
12¡666
581
1,555
1,219
3,647
1,372
4,268
30,236
2,758
22,977
2,596
1^184
31
4,253
19,500
25^251
1,894
52^597
2,431
228
1,545
1,799
136
2,848
8,760
26
1,950
2,955
*401
725
'679
179,610
126,978 15,756
1,186^860 151^955 1,714^211
141^213
122^028 36/7Ì619
141,035
121,919 36/7'.619
1,117
1,363
55,916
29^487
29'æi
30,079
559
*195
43,686
22,170
52,245
74,324
69j783 36/7,619
66¡889
36,720
519
1,125
' 11
25,234
il855
3,663
415
41
(14)
4,523
1,102
34
2
8,592
624
480
184
6,561
1,251
304
3
2,749
389
88
4
19,413
1,332
1,011
31
3,928
92
7
79
348
79
5
5
218
2,970
6,618
2,309
74
(14)
(14)
663
52
(14)
(14)
50
408
2,647
11,016
7,864
107
(14)
1
35
569
457
4
21
608
6,797
11,232
12,273
217
n
244
748
181
45
88
549
15,726
53,428
12,642
142
(14)
3
694
1,571
438
46
6
104
1,396
2,707
2,510
186
(14)
4
117
647
52
25
47
710
15,121
23,170
8,887
387
(14)
18
1,183
2,005
406
74
2
88
1,361
3,390
1,325
65
163
11,164
33
7,234
54
12,156
798
16,725
610
4,415
234
13,248
981
4,155
41
5
.
_
7,450
6,648
5,853
5,674
18,038
1,128
22,816
7,683
66,530
21
22
.67 25
26
-
(14)
41
94
24
10
27
28
29
30
31
32
86 33
202
98
29
97
212
47
1,972
13,640
67
27,387
3,876
3,624
5
1
(14)
28,466
907
66,707
8,165
1,708
139,194 17,002,670 1,410,225 3,861,189 126,578
34
35
36
37
58
111,257 2,504,696 58,546 2,044,795 44,901 5,989,862 376,941 6,206,522 522,726 1,496,194 104,749 12,775,991 1,145,794 2,894,300 101,675
51,176
5,589
3,670
4,685
269,432
5,507
25,484
3,536
296,545
363 118,998 13,183 291,033
463
3,247
5,599
a, 958
55,680
190,759
5,128
20,481
1,420
41,112
10,086
2,146 138,896
6,551 111,827
61,013
5,449
31,090
5,657
1,077
6,907
877
69,630
4,836
83,860
4,373
2,097
28,758
33,815
15,430
450
1,111
55,177
65,687
1,739
425,550
52,704
5,318
6,311
199,340
17,142
447 127,929
18,613
1,563
83,707
1,495
273
1,501
5,520
1,492
1,041
154
3,816
315
367
6,061
916
6,834
290
238
160
526
85,131
5,994
10,459
5,139
4,880
1,264
56,175
22,346
3,689
480
11,272
13,142
508
717
24,147
2,259
59,058
263,478'
35,063
33,881
2,852
244,304
120,013
6,368
1,261
1,062
58,818
55,134
2,498
33
97
4,849
34
18,680
88
3,208
3,434
11,316
42
43
13
10,028
14
4,742
2,196
52,458
6,287
31,758
263,525
26,826
44,919
315,136
14,610
43,062
1,227 151,917
1,464
72,801
1,952
80
3,597
19,542
20,039
1,699
187
287,506
26,651
11,605
340
6
4,611
83
99
68
1,286
33,522
81,840
246,173
10,826
299
35,085
254,005
48,66J
IS 116,363
12,364
116
482
211
64,847
4,999
24,150
651
5,016
15,617
752
42,252
12,481
820 252,998
236
21,432
594
12,715
10,412
108
70,751
2,729
45
2,871
7,488
78,247
1,813
48,719
68
78
16,900
10,567
80
7,007
1,758
117
13,411
2,659
5,361
533
2,010
3,200
7,338
1,922
300
538
763
Z\408
939,159
99,590 232,088 13,416
18,158
90,179 ’ 243,395
936,635
68,444
8,895 598,097 27,104 948,807
14,607 281,140
141,385 3,138,633 76,168 3,124,044 98,793 8,246,894 572,092 9,033,415 786,265 1,971,649 151,447 L5,721,876 1,457,416 3,585,539 134,506
354,693 36/19.140 223,064 56/12.253 1,280,794 36/47,191 275,650 36/7,927
36/7',248 '543,151 36/2.411 585,848 36/6.150 1,054,188 36/28,077
554,144 36/19.143 222,961 36/12,257 1,280,083 36/47,209 275,562 36/7,927
56/7,256 342,933 36/2,411 585,440 36/6.151 1,053,580 36/28.088
427
3,495
—
—
—
—
“
2,591
451
2,244
2,646
933
717,183
_ 157,461
_
81,907
— 109,803
13,014
412,000
316,018
58,349
_ 69,068
«
52,525
. « 210,912
94,336
224,217
97,105
994
_
3,965
527
•
•
115
1,240
361
1,845
84,157
565,754
66,054
_
10,521
335,023
249,893
126,980
780,631
- 143,501
__ 348,843
“
119,104
104,972
560,480
196,410
36/7,927
132,149
500,163
56/47,191
36/12,253
103,960
36/28,077
249,721
36/19,140
36/7,248 146,741 56/2,411 237,005 36/6,150 493,708
39
40
41
42
43
44
45
46
47
48
49
50
51
52
55
54
55
56
57
58
59
60
61
62
63
64
103
7,628
1,427
a, 271
985
134,137 3,481,784
77
75
448
7
76,858
6.379
400
12
116
14,170
. 146
1,012
261
34,387
73,757 3,709,892
267
100,453
13.216
56
50
177
82,847
7,275
35,376
1,113
92,643 9,301,082
-
193
14
373,915
5.581
84
53
93,183
286
6
22,895
3,006
253,581
544,015 9,388,109
8,215
73
346,480
11.863
74
127
3,285
695
2,844
79
3,795
22,777
767,122 2,194,713
14,074
60,943
1.554
1,375
77
293,627
13.895
19,694
186
103,817
2.516
425 65
107 66
Table 3. - Corporation income and declared value excess-profits tax returns with balance sheets, 1/ 1945, by major industrial groups, for returns with net income and returns with no net incomei 2/ Number of returns,
assets and liabilities, compiled receipts, compiled deductions, compiled net profit or net loss, net income or deficit, and dividends paid by type of dividend; also, for returns with net incomes Net operating loss
deduction, adjusted excess profits net income, income tax, declared value excess-profits tax, excess profits tax, total tax, and compiled net profit less total tax - Continued
(Money figures in thousands of dollars)_______
~ Major industrial groups 7/ - Continued
Public utilities
M anufacturing - Continued
Automobiles and
Electrical machin- Machinery, except
ery and equipment transportation equip- equipment. except
ment and electrical electrical
Net
No net
No net
No net
Net
Net
income
income
income
income
income
income
1,523
484
1 rnber of returns with balance sheets 58/
ssets:
25,262
463,614
2 Cash 39/
70,367
L,014,954
3 Notes and accounts receivable
15,899
1,052
Less: Reserve for bad debts
4
77,309
866,989
5 Inventories
8,066
503,668
Investments, Government obligations 40/
6
757,185
30,025
7 Other investments
L,095,769
74,493
8 Gross capital assets 41/ (except land)
37,318
660,821
Less: Reserves
9
2,679
39,497
Land
10
132,595
18,394
Other assets
U
268,224
1,197,549
Total assets 42/
12
Labilities:
41,433
584,445
13 Accounts payable
Bonds, notes, mortgages payable:
29,619
212,649
Maturity less than 1 year
14
33,287
181,617
Maturity 1 year or more
15
640,279
37,600
16 Other liabilities
88,634
16,291
17 Capital stock, preferred
44,671
952,881
18 Capital stock, common
7,251
451,191
19 Surplus reserves
1,115,248
68,515
20 Surplus and undivided profits 43/
9,396
10,443
less:
Deficit
44/
21
4,197,549 268,224
- Total liabilities 42/
22
sceipts: >
5,502,235 435,181
23 Gross sales 16/
3,116
43,042
24 Gross receipts from operations 17/
Interest on Government obligations (less
amortizable bond premium):
219
4,100
Wholly taxable 18/
25
7
1,082
26 • Subject to declared value excess-profits
tax and surtax 19/
97
(14)
Subject to surtax only 20/
27
446
(14)
Wholly tax-exempt 21/
19,463
188
Other interest
178
5)291
Rents 22/
262
ll)280
Royalties 23/
49
407
Excess of net short-term capital gain over
net long-term capital loss 24/
738
13,385
Excess of net long-term capital gain over
net short-term capital loss 24/
67
912
Net gain, sales other than capital assets 25/
18,425
159
Dividends, domestic corporations 26/
67
9)322
Dividends, foreign corporations 27/
2l)617
2,458
Other receipts
6,65l',105 442,668
Total compiled receipts 9/
»eductions:
5,011,257 378,559
Cost of goods sold 28/
5^866
2^158
Cost of operations 28/
8'199
55,321
Compensation of officers
3^847
24^960
Rent paid on business property
84)046
4)298
Repairs 29/
1*865
'265
Bad debts
3,054
22^970
Interest paid
6 )1 9 4
101^179
Taxes paid 50/
7,242
164
Contributions or gifts 31/
59^544
5,211
Depreciation
117
Depletion
2,422
43,667
Amortization 52/ .
60^861
5^410
Advertising
52,571
571
Amounts contributed under pension plan, etc.
182
2*889
Net loss, sales other than capital assets 25/
46,411
5 0 0 )2 7 0
Other deductions
6,034,425 4 6 6 )9 4 4
Total compiled deductions
616,680 36/24,276
Compiled net profit or net loss (38 less 55)
616,233 1^24,277
let income or deficit 2/ (56 less 28)
968
'jet operating loss deduction 53/
370,367
Ldjusted excess profits net income 10/
90)053
Income tax 3/
'779
Declared value excess-prc*lts tax
302,408
Excess profits tax 4/
395,240
Total tax
223,440 36/24.276
Compiled net profit less total tax(56 less 63)
Dividends paid:
1,571
143,284
Cash and assets other than own stock
T o r fo o tn o te s"
see p p .
2 9 -3 0 .
Transportation
equipment. except
automobiles
No net
Net
income
income
4,432
1,523
491
105
721
864,637
991,938
34,942
1,544,193
968,645
423,630
2,494,543
1,445,919
97,887
248,522
6,153,134
31,989
74,858
1,900
117,867
13,777
21,646
238,818
130,294
9,331
25,955
402,048
147,231
172,433
4,233
243,581
99,240
63,534
272,460
140,793
16,927
41,415
911,795
279,587
136,019
227
127,779
27,588
31,183
608,327
361,814
34,798
62,623
945,862
1,351,277
2,612,295
8,910
1,019,651
1,360,026
486,191
2,579,738
1,592,021
72,433
197,108
8,077,788
80,214 1,465,791
576,015
S3,770
101,965
130,053
260,607
781,762
420,825
1,455,506
576,913
1,984,616
32,944
6,153,134
40,266
32,974
37,458
20,838
95,085
30,895
139,464
46,703
402,048
52,476
31,646
134,474
26,091
106,557
101,321
360,252
2,987
911,795
9,006,512
138,568
552,395 1,934,320 1,121,817 13,387,238
1,206
482 3,088,581
12,179
7,166
26,234
44,052
17,490
33,565
1,904
739,369
4,132
945,862
188,072
138,558
1,560,055
337,893
1,100,508
880,703
2,457,806
51,599
8,077,788
331
Other
manufacturing
Net
income
Manufacturing
not allocable
No net
income
990
1,641
7,520
15,194
609
24,457
4,532
3,933
44,607
18,332
2,634
5,091
89,027
138,668
232,281
4,471
174,911
129,151
82,866
332,608
167,004
20,110
28,784
967,905
125,370
12,820
94,510
23,670 1,617,343
.26,258
54,592
69,867
114,684
57,456 239,617
83,877
4,980
25,772 391,775
17,466 113,439
46,052 469,001
23,451
15,084
282,069 1,532,454
7,517
18,820
7,712
3,908
28,724
2,614
21,950
15,038
89,027
73,688
45,995
124,797
82,453
186,242
52,254
314,210
6,244
967,905
14,448
243,658
10,214 17,727,147
8,973 4,629,620
7,063 3,934,672
25,243 17,415,364
1,827 1,267,875
14,473 9,989,276
12,346
850,678
95,564 55,974,277
32,850
196,527 2,534,198 114,170 1,545,928
34,364
18,940
3,759
292,402
3,815
Communication
Net
income
1 ,7 9 5
291,269 1,512,467
236,104 140,629
241,187 296,604
286,230 1,169,658
2,831
1,253
3,889
9,092
67,438
148,446
601,861
130,990
30,296
73,916
42,627
650,458
1,004,973 4,253,341
907,892 3,308,704
6,908,770 23,698,805 5,958,489 6,591,378
1,823,701 6,158,399 1,521,952 2,391,342
23,736
15,447
38,444
175,087
323,797
97,869
349,951 1,302,452
7,243,119 27,196,638 6,329,287 8,197,814
367,232 1,144,694
338,098
209,108
25,287
44,401
58,524
134,298
3,174,406 8,416,157 2,810,341 1,504,547
1,079,372 2,861,588
976,724 542,201
331,623 1,139,732
240,060 143,877
1,937,663 6,855,315 1,723,378 4,842,268
84,584
581,288
57,885
42,684
911,637 901,504
1,038,712 6,620,847
13,663
773,238
828,998
557,281
7,243,119 27,196,638 6,329,287 8,197,814
No net
income
525
1
26,534 2
28,924 3
2,098 4
8,927 5
357 6
57,516 7
409,944 8
178,620 9
.4,697 10
8,855 11
364,816 12
6,220 13
V 2,289
102,314
70,105
625
116,556
11,783
59,501
4,577
364,816
14
15
16
17
18
19
20
21
22
361 25
3 26
1,866
100
17,733
2,005
1,339
75
5,036
42
1
64
159
152
8
88
2)696
81,310
313,495
5,201
984
(14)
145
14,860
47,430
505
507
49
2,330
38,491
264,607
4,102
921
(14)
133
13,937
46,763
427
506
2
59
2,269
24,793
706
26
(14)
10
227
205
5
1
27
28
29
30
31
32
147
34,316
2,245
25,112
2,209
1,790
(14)
53
6
826
(14)
786
222,050
54
35
36
37
38
22,815
117,935
21,590
5,702
157,278
340
455,608 1,530,127 951,555 11,291,725 177,865 1,764,676 89,716 1,159,997' 124,895
5,700
1,260 10,560,017 2,036,414 7,357,676 1,778,061 1,148,092 181,271
7,634
2,835
612
235 2)628)735 249,424
6,374
97,318
137,923
23,604
21,402
12,921
935
5,543
41,059
6,432
66,532
6,092
47,564
18,504
2,001
2l)070
467,767
155,844
141,927
37,745
528,998
13,254
1,796
7,718
1,750
2,406
15,555
42,721
4,167
1,500
6,751
12,843
27,831
11,609
2,528
842
2,203
33,269
16,798
28,027
1,072
3,003
46,342
146,529
30,299
10,491
1,101
4,086
2,193
2,544
801
144
17,952
1,158
350
577
1,360
6,017
5,181
605
'610
587,962
129,818
57,111
4,135
146,539
789,767
1,096
5,108
7,213
800
3,149
1,587
31,200
4,224
2,675
587,151
165,984 162,772
186,978
7,958
2,385 1,160,917
2,183
20,925
51,010
9,321
230,387
18,049
9,944
23,279
83
92
6,856
6,060
2
23,288
21
1,519
4,034
30
26
3
13,325
70
1,200
121,872
356,533
95,167 231,405
14,466
2,031 1,032,722
2,016
15,813
26,569
6,083
104,530
23,532
9 ,6 6 8
12,656
6
7,545
2,127
2,395
23,136
(14)
80
459
8
16
25
1
984
97
655
117,705
759
1,987
124,594
398,138
492,566
824
6,811
439
10,248
20,250
105,598
10,659
8,134r• 15,793
14,138
41
2,408
2,476
21,254
45,046
1 ,9 9 7
1,194
14,902
36,494
1,691
8,917
29)000
4^711
1 0 )5 4 3
75,887
62
3,072
17,308
3,431
140,663
86
3,470
175
12,378
690
1,424
27,833
1^313
2,229
26,996
153
29,896
1,409
41,016
51,572
437
1,369
258
1,075
1,396
86
8,925
2*389
525
188,267
10,528
589,946
250,500
235,908
1,242,089
20,415
18,663
165,550
294,316
48,877
945,193
75,085
69^942 108,098
2,707,316 2,009,122
607)263 1,765)446 1,147,448 15,654,432 530,173 2,327,139 127,879 1,468,357 165,214 16,437,204 3,339,014 10,473,461
1,454,078 36/139,716 702,616 36/14,527
36/36,590 184,053 36/14,423 1,049,665 36/33,349 255,971 36/8,063 129,553 36/12,316 3,115,838 36/187,362
702,576 36/14,537
36/139,849
1,451,747
36/187,506
3,113,143
3^/36,602 184,048 36/14,449 1,049,612 3^33,349 255,833 36/8,073 129,495 36/12,318
329
4,982
8,301
820
1,524
994
100
216,372
573,879
979,328
64,889
134,457
621,476
131,596
318,261
715,052
_ 126,719
23,916
“
•
45,408
161,654
22^145
67
2,076
2,285
540
1,080
3,141
465
183,503
475,195
820,299
50,210
104,051
484,611
100,095
315,166
795,532
1,537,636
74,667
150,539
649,406
122,703
658,545 36/139,716 387,450 36/14,527
54,886 36/12,316 1,578,202 36/187,362
400,259 36/33,349 105,433 36/8,063
61,350 36/14,423
56/36,590
2,496
23,738 374,395
343,687
35,824
1,202,525
322
26,073
281
49,495
778
291,896
4,879
20,251
3,721
612
1.114
4.117
1.406
279 ' 5.292
2.267
39
40
41
42
45
44
!*
5
58
996
2,710
685
28
1 ,9 9 4
2,042
397
41
1,257
6,579
6,095
7,940
212
(14)
11
353
662
501
12
(14)
5
827
1,020
267
7
*
26
616
2,928
999
3
25
53
14,279
8,399
5,133
455
(14)
326
504
29
10
2
138
1,932
2,970
1,291
87
835
20
13
5,491
701
922
1,342
25,396
564
2,594
64
188,209
7,975
No net
income
30,404
2,345
118
•-
517
90,474
61^086
32*983
3^878
843^864
8,287)678
962,473
961,217
2,196
544,374
157)647
3)101
435,495
596,242
566,231
4,984
Transportation
Net
income
417 23
219,204 24
54
(16)
15*413
890
1 0 2 )4 4 6
No net
income
31,336
6,186
33,158
160,727
148,995
220,395
2,324 18,483,649 2,811,599 11,509,867 2,453,811 2,486,959
1,388
78
268
94
36)002
166)588
5,183
2l)857
140)212
13^923
■ 11,672
2,462,952
26,277 1,960,566
450
39,730
25,331
966,897
2,651 1,262,936
2,560 10,651,422
41,946 49,179,001
17,424 12,695,465
347,725
1,300
5,504 1,877,973
93,564 55,974,277
5 ,8 6 8
83
(14)
1,165
8
1 5 5 )2 1 0
768
Net
income
2,792
219
24
6,606,151
9,323
No net
income
29,743 252,323
60,789 307,515
769
7,613
50,106 365,731
14,773 186,695
15,601 136,027
177,868 529,617
85,477 285,646
5,330
2l,242
46,564
16,104
282,069 1,532,454
9,394
1,348
294
10,162
4,456
51,824
9,250,151
Net
income
Totai* public
utilities
82
13
114
12
24,562
436
1,063
239
2,057
107
815
30
3,186
151)536
3,234
8,570
570,673 1,949,498 1,153,025 16,704,097;
10
77
62
106
37
41
1,329
29
3,285
1,318
132
1,523
45
7
8,155
13,607
674
4,978
496,824 2,583,111 119,816 1,597,910
-
1,546
1,753
1,204
28
44
1,189
3
313,574
7,351
69,510
6,523 176,997
337
530
337
7,353
1,664
10,345
9,016
5,198
946
55,480
30,111
152,897 19,553,042 2,931,652 11,927,539 2,567,600 2,711,738
,45
46
47
48
49
50
51
52
55
54
55
56
57
58
59
60
61
62
63
64
65
66
I c<rporatlon1s own stock
T o r footnotes, see pp» 29^
g« 267I
«
Table 5« — Corporation income and declared value excess-profits tax returns with balance sheets, 1/ 1945, by major Industrial groups, for returns with net Income and returns with no net Income: 2/ Number of returns,
assets and liabilities, complied receipts, compiled deductions, compiled net profit or net loss, net income or deficit, and dividends paid by type of dividend; also, for returns with net income: Net operating loss
deduction, adjusted excess profits net income, income tax, declared value excess-profits tax, excess profits tax, total tax, and compiled net profit less total tax - Continued
Public utilities-Con.
Other public .
utilities
Net
income
. 1,904
Total trade
No net
No net Net
income
income income
91,464
19,123
644
(Money figures in thousands of dollars)
____
Major industrial groups 7/ - Continued*
Trade
Retail
*
Wholesale
Food stores, in- Package liquor
General
Commission
Total
retail
cluding market
Total wholesale
Other
wholesalers
merchandise
merchants
stores
milk dealers
No net Net
No net
No net Net
No net Net
No net Net
No net Net
Net
No net
Net
income
income
income
income
income
income
income
income
income
income
income
income
income
income
177
468
3,758
1,005 -1,539
4,383
24,216
4,807
53,175
10,595
27,859
6,040
3,643
1,253
1 Number of returns with balance sheets 58/
Assets:
809,856
28,831 3,792,850 152,865 1,421,281 .76,895 171,889
Cash 59/
16,119 4,576,585 246,151 2,568,833 157,650 293,401
494,304
Notes and accounts receivable
79,844
2,894
7,489
179,482
7,645
27,807
538
Less: Reserve for bed debts
57,301
8,528 6,341,721 240,636 2,853,057 111,968
297,598
Inventories
40,516
98,656
18,253
11,973 2,547,729
820,265
538,562
Investments, Government obligations 40/
6
943,686
45,504 177,256
84,250
5,089,377
39,565 2,002,332
Other investments
7
57,060
18,888,817 540,337 4,955,590 352,416 1,212,386 120,309
Gross capital assets 41/ (except land)
8
574,820
39,349
24,452
4,145,725 123,129 2,496,439 137,297
less: Reserves
9
168,447
811,061
12,290
46,554
7,220
157,191
10,OU
Land
10
58,361
236,884
29,487
20,658
6H,9S2
477,652
17,319
Other assets
11
20,579,825 549,015 22,963,879 1,076,807 9,570,174 508,112 851,501
Total assets 42/
12
Liabilities:
22,914 3,505,375 259,063 1,894,935 138,161 261,829
263,541
Accounts payable
15
Bonds, notes, mortgages payable:
767,683
67,212
42,371
U,83S 1,157,095 112,449
84,073
Maturity less than 1 year.
14
532,327
52,876
37,424
7,806,445 261,751 1,238,479 127,551
Maturity 1 year or more
15
50,563
63,149
99,420
817,822
32,543 2,314,601
1,225,831
16
Other liabilities
413,356
32,899
65,991
25,970
90,938 1,147,8U
2^651,065
Capital stock, preferred
17
97,729 5,590,420 377,771 2,161,542 160,190 163,840
5^717,791
Capital stock, common
18
13,926
26,191
21,444
390,089
14,916 1,034,697
'643,902
Surplus reserves
19
89,954 234,118
67,574 7,287,664 199,882 2,698,785
2,466'925
Surplus and undivided profits 45/
20
106,166
10,321
90,739
51,183
312,264 186,763
'279,734
Less: Deficit 44/
21
20,579,825 549,015 22,963,879 1,076,807 9,570,174 508,112 851,501
Total liabilities 42/
22
Receipts:
1,405 61,308,324 2,250,875 29,650,006 1,102,062 1,208,048
55,482
Gross sales 36/
25
723,477 112,472 337,945
4,686,823 138,584 1,042,112 167,391
Gross receipts from operations 17/
24
Interest on Government obligations (less
amortizable bond premium):
216
713
166
25,421
514
8,659
7,634
Wholly taxable 18/
25
8
17
1,566
17
341
299
21
Subject to declared value excess-profits
26
tax and surtax 19/
2
6
55
122
1
57
(14)
Subject to surtax only 20/
27
1,126
438
15
61
19
326
(14)
Wholly tax-exeiqpt 21/
28
20,437
478
1,283
4,890
41,882
40,550
697
Other interest
f»
29
2,541
462
154,459
5,950
25,655
1,720
24^195
Rents 22/
50
516
5,407
UO
255
5,838
75
393
Royalties 25/
51
1,056
173
103
332
2,007
37
Excess of net short-term capital gain over net
52
long-term capital loss 24/
20,302
629
1,517
1,620
36
45,579
7,414
access of net long-term capital gain over net
55
short-term capital loss 24/
264
5,096
777
1,247
75
9
179
Net gain, sales other than capital assets 25/
54
24,519
7,122
721
201
47,243
67,066
3
Dividends, domestic corporations 26/
55
2
8,503
81
21,283
5
5,159
Dividends, foreign corporations 27/
56
26,672
173,009
12,057
18,707
515,673
20j171
543
Other receipts
57
4,915,766 142,002 63,197,731 2,456,568 30,659,309 1,230,407 1,582,185
Total compiled receipts 9/
58
Seductions:
885 48,150,774 1,847,152 25,654,870 983,823 1,118,523
35,642
Cost of goods sold 28/
59
331,683
482,557 125,706
87,515 105,606
77,082
2,054,249
Cost of operations %8/
40
79,579
482,190
53,630
55,494
1,266 1,104,875
27,683
Compensation of officers
41
36,037
7,876
9,330
662
764,188
98,765
25,486
Rent paid on business property
42
10,726
44,683
1,636
195,966
2,510
392
2,910
Repairs 29/
45
1,189
4,920
15,895
1,744
59,264
l
l
'
,
S
2
1
291
Bad debts
44
5,976
7,548
45,441
3,367
98,645
544^694
12,585
Interest paid
45
518,832
24,731
154,787
10,294
15,036
9,500
410^995
Taxes paid 50/
46
54,826
273
18,289
95
1,769
10jS72
7
Contributions or gifts 31/
47
17,'154
61,468
254,419
4,715
3,105
12,239
444,984
Depreciation
48
995
424
154
1,687
602
15,585
268
Depletion
49
1,561
3,644
1,428
100
4,902
4,651
93,669
Amortization 52/
,
50
151,043
9,217
544,768
21,339
6,125
27
9,654
Advertising
51
1,963
50,174
406
297
85,044
1,754
47,469
Amounts contributed under pension plan, etc.
52
5,047
14,658
2,138
853
18,867
24,514
20,267
Net loss, sales other than capital assets 25/
55
37,315 7,449,844 329,002 2,322,588 US,431 168,619
401,645
Other deductions
54
29,421,562
1,261,817
1,488,507
59,794,631
2,522,931
5,954,621
175,121
Total compiled deductions
55
93,677
'959,145 36/33.119 5,403,101 36/66.562 1,237,747 36/31.410
56 Compiled net profit or net loss (38 leas 55)
93,616
958,819 36/33.120 3,401,975 36/66.582 1,237,310 36/31.426
57 Net Income or deficit 2/(56 less 28)
•
5,162
808
13,117
2,990
58 Net operating loss deduction 55/
•
36,516
1,628,206
579,050
189,076
59 Adjusted excess profits net income 10/
230,138
17,182
621,369
265,195
60 Income tax 5/
•
5,377
14,496
384
145
61 Declared value excess-profits tax
1,250,215
435,080
28,424
161,600
62 Excess profits tax 4/
_
_
1,886,077
670,594
45,989
426,938
Total tax
65
567,153 36/31,410
47,688
552^207 36/35,119 1,517,023 36/66,562
64 Compiled net profit less total tax (56 less 65)
Dividends paid:
1,178
21,743
545,421
3,915
191,729
9,590
484,445
Cash and assets other than own stock
65
28.675
288
1.471
59.878
458
563
292
Corporation's own stock
66
for footnotes, see pp. 29-50,
2
S
4
5
14,039
22,435
206
5,756
2,554
5,726
8,679
2,205
575
5,345
60,696
62,856 2,063,750
1,249,391
2,275,433 115,215 1,601,168
82,142
72,355
2,688
2,795,755 106,212 2,974,070
721,609 > 15,699 1,571,084
37,779
761,441
766,430
1,155,326 1U, 630 3,273,567
550,368
37,144 1,675,754
550,686
161,226
11,715
324,984
216,226
26,143
8,718,673 447,416 11,362,673
24,424 1,633,106
115,737 1,321,252
4,607
725,312
7,933
494,903
5,577
754,673
380,457
2,130
19,693 1,997,502
523
363,898
7,067 2,464,667
11,257
95,845
60,696 8,718,673
314,423
62,605
44,943
623,259
44,986 1,323,144
652,957
25,840
140,497 2,894,692
574,574
13,403
82,887 3,840,848
182,476
79,482
447,416 11,362,673
85,207 28,441,958 1,016,855 26,849,730
257,152
75,348
37,124
385,532
59,078 766,637
78,028 523,144
38,681
3,114
100,642 1,205,906
17,975 878,663
50,585 388,655
178,408 1,417,401
76,377 701,369
25,393 283,617
21,832 129,285
432,451 4,853,256
87,201
439,645
25,485
35,581
57,281 262,098
39,554 617,176
30,563 553,094
162,901 1,218,536
3,969 37+,455
89,045 1,585,287
20,314
73,644
432,451 4,853,256
6,623 224,077
12,217 153,598
471
3,563
14,376 436,838
7,990 148,595
54,327
13,252
12,062 504,557
5,029 259,129
1,842
40,954
5,658
36,895
66,521 1,317,151
4,521 9,253
523
266
5,464 2,453
182
12 (14)
5,880 29,368 2,452
824
221
13
871
801
97
684
19,078 7,181
8,154 2,672
188
1,116
352
40
1,716 1,797
503
30,531 49,344 4,190
246,605
8,978 10,241 1,381
1,404 120,482
4,496
67,881
4,775 114,485
75,643
12,681
13,301 250,722
38,414
1,335
22,932 454,569
3,205
49,648
66,521 1,317,151
506
2,540 4,034
624
4,282 4,818
2,731 4,094 \ 278
336
874
68
11,775 10,086 1,261
216
304 (14)
4,562 15,895
405
5,427
465
334
30,531 49,344 4,190
8,800
873,229 9,367,475 112,349 5,782,255 136,549 184,447 12,281
57,205
6,914 1,845
778
845
31,075
39,244
8,146
323
182
6
14,835
1,141
228
9
7,903
326
75
1
1,261
546
2
“
49
376
15,546
21,114
3,152
953
1
14
382
1,585
106
116
56
641
17,587
98,703
1,458
813
1
2
654
3,385
270
123
24
137
7,058
52,629
456
124
-
97
134
4
58
(14)
168
539
4
(14)
3
105
1,007
4,067
30
58
9
251
2
10
(14)
9 (14)
105 (14)
(14)
• 1
“
52
18,683
577
19,150
525
6,092
72
1,800
71
200 (14)
34
2
i
3,172
247
1,172
19,705
17,397
179
4,450
2
8,421
301,153
8,622
154,302
3,435
126,185 29,077,125 1,104,222 27,589,725
16
22
-
15 (14)
-
50
58
1,330
217
20
419
5
9
1,167
“
245
10,153
481
5
4,060
(14)
116
557
80
2,214
10,599
12,396 125,886
950,965 9,613,615 116,533 5,841,432 144,208 186,778 15,140
80,338 24,556,347 903,485 18,709,554 634,470 6,089,865 76,927 4,643,165 111,487 149,551 10,247
679
5,453 1,518
23,756
225
9,181
25,888
65,896
119,988
226,077
21,619
3,586 8,414
759
37,444
1,355
84,521
36,822
507,602
428,696
26,222
7,408
247
2,202 2,962
62,620
1,085
24,883 200,871
623,865
6,534
1,342
89,435
42
907
280
23,491
750
48,691
6,768
134,342
2,533
177
43,047
2
21
1,956
485
127
2,597
10,810
37,195
1,447
14,706
297
306
32
198
5,913
20,586
400
46,023
3,142
3,045
325
59,465
159
976 1,911
40,401
1,725
12,490 135,552
320,104
8,865
144,494
635
2
29
111
2,828
17,585
146
53,109
80
16,519
12
50
514
1,322
32,091
1,131
9,687
61,701
168,932
4,406
58,363
310
(14)
1
8
77
95
482
861
424
1
1
247
109
881
(14)
1,405
25
3,544
658
42
27,626
511
2,842
10,040 182,795
8,387
364,778
831
144,918
23
24 (14)
2,078
1,218
57,578
1,407
50,545
77
329
28,419
1
1
82
1,164
9,202
9,796
11,280
16,734
97
4,195
2,041
16,576 2,155,969
96,855 4,554,952 178,009 1,750,500 21,854 776,149 19,493 12,836 1,151
130,067 27,933,054 1,131,750 25,689,085 957,835 8,660,015 118,846 5,680,939 146,566 179,089 13,394
36/3.882 1,144,070 36/27.528 1,900,640 56/26.870 953,600 36/2.313 160,493 36/2,358 7,689 36/254
55/3.883 1,145,694 36/27.543 1,899,999 36/26.873 953,463 36/2,314 160,588 36/2,358 7,689 56/254
751
—
—
162
“
6,207
4,354
838
68,069
605,668
967,562
542,514
1,761
34,793
“
140,714
530,573
212,956
87
654
“
1,799
7,687
4,993
608
52,627
“
473,720
752,158
406,656
2,457
•
88,074
616,253
1,090,218
624,605
72,419 36/2,35€ 5,232 56/254
56/5,882
519,466 36/27,528
810,422 36/26,870 537,367 36/2,513
in
140
109
169,986
27.204
1,058
180
314,815
25.374
2,185
97
165,476
7.168
1,289
36,161
1.869
11!
207
66
Table 5. - Corporation Income and declared value excess-profits tax returns with balance sheets, 1/ 1945, by major Industrial groups, for returns with net iixsome and returns with no net Incan > 2/ Number of returns,
assets and liabilities, compiled receipts, compiled deductions, compiled net profit or net loss, net income or deficit, and dividends paid by type of dividend} also, for returns with net Incomet Net operating loss
deduction, adjusted excess profits net income, Income tax, declared value excess-profits tax, excess profits tax, total tax, and compiled net profit less total tax - Continued
___________
1 Number of returns with balance sheets 58/
Assets!
2 Cash 59/
S Notes and accounts receivable
4
Least Reserve for bad debts
S Inventories
6
Investments, Government obligations 40/
7 Other investments
B Gross capital assets 41/ (except land)
9
Lesst Reserves
Land
10
Other assets
U
12
Total assets 42/
Liabilities,!
18 Accounts payable
Bonds, notes, mortgages payablet
14
Maturity less than 1 year
15
Maturity 1 year or more
16 Other liabilities
17 Capital stock, preferred
18 Capital stock, oommon
19 Surplus reserves
20 Surplus and undivided profits 45/
21
Lesst Deficit 44/
22
Total liabilities 42/
Receiptst
28 Gross sales 16/
24 Gross receipts from operations 17/
Interest on Government obligations (less
amortizable bond premium)t
25
Wholly taxable 18/
26
Subject to declared value excess-profits
tax and surtax 19/
27
Subject to surtax only 20/
28
Wholly tax-exempt 21/
29 Other interest
50 Rents 22/
81 Royalties 28/
52 Excess of net short-term capital gain over
net long-term capital loss 24/
58 Excess of net long-term capital gain over
net short-term capital loss 24/
84 Net gain, sales other than capital assets 25/
86 Dividends, domestic corporations 26/
56 Dividends, foreign corporations 2V
57 Other receipts
Total compiled receipts 9/
88
Deductionst
59 Cost of goods sold 28/
40 Cost of operations SEs/
41 Compensation of officers
42 Rent paid on business property
48 Repairs 29/
44 Bad debts
45 Interest paid
46 Taxes paid 80/
47 Contributions or gifts 51/
48 Depreciation
49 Depletion
50 Amortization 32/
51 Advertising
52 Amounts contributed under pension plan, etc.
58 Net loss, sales other than capital assets 25/
54 Other deductions
Total compiled deductions
55
56 Compiled net profit or net loss (58 less 55)
57 Net income or deficit 2/ (56 less 28)
58 Net operating loss deduction 58/
59 Adjusted excess profits net income 10/
60 Income tax 5/
61 Declared value exoess-profits tax
62 Excess profits tax 4/
Total tax
68
64 Compiled net profit less total tax (56 less 65)
Dividends paidi
Cash and assets other than own stock
Corporation's own stock
.
For footnotes, see po. 29-50.
■
_____________ (Money figures In thousands of dollars)
Trade - Continued
Retail - Continued
Apparel and
Furniture and
Eating and
Automotive
. Filling
Drug stores
Hardvrare
accessories
house furnishings drinking places
dealers
stations
Net
No net Net
No net .Net
No net
Net
No net Net
No net Net
No net Net
No net
income income income
income income income
income income Income
income income income income income
2,825
467
956
8,600
3,740
799
-5,485
2,144
575Ï3 1,493 1 1,104
407 1,786
170
51,596
27,566
579
1.23,422
17,520
14,588
85,634
47,902
5,871
8,901
¡84,816
1,122 327,717
726 206,507
4
8,415
4,934 328,571
34 181,588
171
86,653
3,905 235,057
2,005 132,787
84
29,016
312
43,983
9,277 1,297,690
40,942 2,643
5,434
18,190
52,046
15,212
74,161
12,751
92,150
4,029
284,816
192,077
4,070 95,049
5,039 181,217
234
8,935
9,396 144,795
526 85,929
741 38,616
5,738 94,923
2,438 40,974
65 19,596
1,122 16,332
24,024 626,546
7,762
48,073
4,804
9,941
464
8,691
1,790
1,548
4,434
1,882
1,063
1,719
31,642
•85,578
28,209
300
58,498
32,574
23,091
254,852
137,503
32,343
17,063
394,384
4,711
2,830
6
7,125
586
1,825
59,955
16,280
4,062
2,950
47,757
4,674
49,999
11,590
5,228
12,258
6,596
4,802
16,253
281
5,155
14,206
47,757
138,643
94,439
5,706
141,031
63,831
28,232
145,140
66,562
31,207
16,555
589,008
708
1)5,267 18,335 1,604 21,935
953
10,367 15,012 1,598 19,953
454
44
633
569
34
13,997 17,034 1,750 41,214 2,378
174 8,750
542
2,665 10,27C
762 6,438
114
5,592 7,223
25,187 59,581 8,420 20,890 1,576
¡9,517 56,215 4,859 '9,872 .651
215
6,202 21,967 2,322 4,574
5,473 ; 1,986 1,099 2,645
201
72,465 -114,739 12,827 115,894 5,980
Building materials, Other retail
fuel, and ice
trade
Net
No net Net
No net
income
income income
income
5,536
1,064
5 ,4 4 7
1,051
6,447
11,569
471
7,422
1,624
2,945
22,224
12,474
5,970
2,071
47,527
115,989
150,252
7,405
209,215
48,626
55,132
122,851
61,901
14,861
20,639
626,260
5,780 67,885
9,179 65,659
388 2,612
14,588 104,749
1,220 28,552
1,954 25,320
8,894 108,628
5,552 55,955
1,235 12,320
1,757 9,451
40,646 564,017
748
55,976
7,306
96,184
15,756 39,371
4,076 13
39,797 6,079 i 3,575
757 5,029 1,203
39,772 7,894 , 6,519 1,904 4,420
613
57,340 6,587;15,542 1,004 6,693
529
301 1,684
11,865 ¡2,557 1 1,710
164
166,621 27,251 :45,843 5,417 46,602 2,833
7,636
418 ! 1,639
83
905
1
207,835 18,146 ;28,588 2,851 43,688
865
976
18,575 7,997 ' 1,960 1,607 2,667
589,008 72,46S ¡114,739 12,827 115,894 5,980
26,169
27,619
42,270
23,557
292,159
17,408
266,856
22,408
729,567
3,644
4,866
2,592
2,*35
25,271
468
12,021
11,276
47,527
23,550
34,546
76,244
25,188
160,7p5
22,348
208,530 ,
21,036
626,260
5,354 10,567
4,399 22,036
4,910 35,916
2,285 15,168
15,002 104,198
472 10,977
5,692 129,705
11,203 3,920
40,646 364,017
4,098 14
10,066 15
2,729 16
1,451 17
16,167 18
225 19
4,988 20
4,535 21
39,264 22
56,215 964,383
2,770 9,234
77,552 25
813 24
327
12 25
26
76,716 il,552 ;13,885 2,135 11,541
1,857 13,396
2,428 25,126
2,423 81,919
1,109 39,265
9,708 175,323
129 19,446
5,343 236,105
4,756 12,108
24,024 626,546
4,126
12,741
2,490 '41,829
3,501
50,585
1,702
13,867
14,586
95,323
11,797
329
6,525 127,786
6,291
9,540
51,642 394,384
361,946 51,811 5,281,318
5,639
451
26,228
56,440 811,130
2,597 14,698
55,771 1,149,565 145,651 1,220,556 95,796 222,957 24,826 212,799 8,645 1,556,132
1,421
744
38,325 12,257
48,517 5,168 2,874 1,496
211
18,922
1,641
32
1
2
7
279
585
2
1,109
1,601
55
17,828
215
1
198
5 (14) ' ' 169
7
(14)
1,073
24
20
"
¿
409
22
29
214
2
17
2
21
1,267
3,307
28
58
61
225
(14)
(14)
2
28
505
4,592
5
52
1,290
29
602
4
1^507
51
5,084
5
271
7,195
55,949
876,701 32,609 5,389,181
12
10
551
6
48
10
1,012 (14)
_
-
97
629
2
950 39,827
60,309 872,743
-
6
5
554
51
65
(14)
25
596
58
10
5
4
1,650
5,759
100
159
101
776
184
12
118
1,825
100
-
61
38
6
1
107 (14)
2
69
z
52,380
4.646
54
2
13,167
5.660
155
(14)
8,270
1.5731
119
ie
18
(14)
(14)
1
96
405
7
41
2
18
1,816
2,729
125
41
(14)
(14)
106
74
23
1
14
868
1,800
30
56
58
1,001
26
845
19 35
91
131
54
775
(14)
1
794
13,961
86,854 1,479,770
15
2
164
527
2
1,266 12,447
60,516 990,754
55 54
55
56
1,374 57
79,878 58
(M)
2
245
465
17
5
8
17
1
10
22
1,801
5,906
226
107
16
299
6
3,069
3,771
61
11
35
2,042
485
14
25
12
526
26
371
52
1
61
245
48
48
49
411
951
246
10
105 (14)
16
645
130
424
2
1
371
5
(14)
42
15,271
229 2,690
2,282
1,501
11,925 1,034 1,737
5,552
59,805 1,201,363 159,881 1,289,995 101,412 230,462 26,909 217,508 8,930 1,599,444
10,111
1.644
2
5
4
5
6
7
8
9
10
n .
19
5
18
2
109
2,896
7,899
247
7,653
59C
933
26,255
9,346
1,178
1,455
59,264
646
30
_
6
5 (14)
70
11
2,117
258
7
50
21
1
275
81,742 1,434,771
5,522
23,848
39
1
585,759 23,657 2,126,100 37,812 451,856 21,597 636,571 85,250 876,881 70,442 166,675 19,064 155,602 6,699 1,016,127 64,286 1,052,794 39,805 782,628
1,627
304
2,876
9,053
171
12,821
1,588
818
99
6,805
1,1787 3,214
2,273
25,786 3,282 1,719
643
22,064
7,751
19,426 1,482
46,481
926 10,984
577
5,865
48,364
3,678 18,238
93,044
3,329 41,397
7,057
58,118 5,867 3,870
3,140
37,299
31,583 1,293 159,464
156
7,089
728
57,309
4,039 27,008
842 5,569
1,965 10,211
1,812
21,548 2,788 2,737
57,094
6,845
4,442
105
12,926
8,491
695
4,496
504
35
272 2,810
184
245
4,225
182
2,276
7,125
85C 1,754
15,109
171
11
6,603
38
4,522
401
3,875
203 1,947
477
228
165
50
3,960
423
346
69
2,544
411
960
2,257
55
2,784
578
5,858
558
51
259 1,561
154
100
2,080
365
442
2,985
491
315
2,081
9,673
418
15,655
1,140
19,168
977 7,841
33,782
406 2,614
81
720 13,212
13,746 1,577 5,402
487
23,347
3,605
1,269641
546
4
14
1,555
10
5
215
1
5,280
2e
11
1,367
6
967
70
877
29
5,597
1,087
254
10,542
6,894
428 4,799
15,520
466
67
401
890
4,335
258
15,407
7,681 1,132 3,160
2,755
4
2
6
14
14
9
311
3
7
1
5
2
2
5
10
20
17
117
51
124
19
17
26
5 (14)
18
5
56
14 (14)
91
IS
(14)
95
286 ,17,648
910 6,877
11,045
237
5,510
787
87 1,220
52
70,221
11,297
1,525 22,784
966
87C
6,531
1,260
3
1,283
52
1,540
704
6
528
3,977
132
27
907
14
279
27
940
576
35
95
141
542
108
492
24
2
524
1,652
106
15
56
537
382
48
418
1,807
451
344
157/488 5,487 576,645 12,359 219,616 11,759 315,471 47,883 189,172 17,562 31,228 4,589 27,107 1,332 185,832 13,086 207,772 12,777 109,138
827,654 33,517 3,118,159 62,497 795,582 41,867 1,132,854 165,682 1,218,876 105,494 216,285 27,563 201,865 9.190 1,316,199 89,419 1,590,956 63,194 950,655
49,067 36/707 271,022 56/2,188 77,162 56/2,062
88,854 56/2,678 40,081
83,245 36/2,585
71,117136/4.062 14,177 36/654 15,643 36/260
68,510 36/5,800
88,816 36/2,678 40,066
49,060 Jf/707 270,744 36/2.188 77,141 36/2.062
83,223 36/2,586
68,482 56/5,801
71,11036/4,082 14,174 H/654 15,641 36/260
366
—
_
783
421
108
73
572
188
344
684
1,705
_
_
.
8,694
51,884
20,689
17,340
146,283
2,575
21,100
5,365
26,518
12,530
_
9,421
18,578
9,205
19,508
5,532
41,794
18,526
16,729
2,831
15,181
563
527
222
796
161
1,748
46
580
554.'
349
_
6,496
.
25,282
16,616
111,717
14,134
2,005
16,193
10,068
4,568
20,123
_
16,280
«
.
42,187
26,041
34,438
7,448
5,699 *
155,260
27,351
35,100
33,652
23,026 36/707 115,763 36/2,188 42,062 3§/2,062
45,760 36/4,082 6,731 36/654 9,944 56/266 ; 48,807 56/2,58! t 46,647 56/2,678 25,801
54,857 56/5,^00
8,045
526
1
143,057
173,559
7,247
153,429
65,362
54,363
216,692
125,115
56,007
19,457
729,567
825
26,364
960
68,606
900 188,834
135
80,390
4,096 254,615
13
56,516
1,559 446,094
1,854
15,806
9,277 1,297,690
312 (14)
4
Retail trade
not allocable
Net
No net
income income
3,161
434
16,401
946
201
-
11,5711
1.9111
55
13
7,204
1 .0 2 1
(14) 27
(14) 28
57 29
215 50
31
52
67,455 59
403 40 •
1,421 41
881 42
246 45
167 44 .
217 45
422 46.
47
356 48
75 49
(14) 50
452 51
(14) 52
28 55
8,697 54
80,807 55
36/929 56
3^/930 57
- 58
- 59
“
60
61
62
- 63
56/929 64
-
19
65
66
1
to
1
see pp. 29-30,
Table 3. - Corporation income and declared vaine excess-profits tax returns with balance sheets. 1/ 1945, by major industrial groups, for returns with net income and returns with no net income, Zj Nu^r of return.,
assets and liabilities, compiled receipts, compiled deductions, compiled net profit or net loss, net income or deficit, and dividends paid by type of dividend; also, for «turns with net ine(me, Net operating loss
deduction, adjusted excess profits net income, income tax, declared value excess-profits tax, excess profits tax, total tax, and compiled net profit less total tax - Continued
---- J--
Trftfifl No net
Net
1 Number of returns with balance sheets 58/
Assets:
Cash 59/
2
Notes and accounts receivable
3
Less: Reserve for bad debts
4
Tnventories
5
Investments, Government obligations 40/
6
D+.h«r 1 investments
7
Gross capital assets 41/ (except land)
8
Less: Reserves
9
Land
10
Other assets
U
Total assets 42/
12
Liabilities:
13 Accounts payable
Bonds, notes, mortgages payable:
Maturity less than 1 year
14
15
Maturity 1 year or more
Other liabilities
16
Capital stock, preferred
17
Capital stock, common
18
Surplus reserves
19
Surplus and undivided profits 45/
20
Less: Deficit 44/
21
Total liabilities 42/
22
Receipts:
Gross sales 16/
23
Gross receipts from operations 17/
24
Interest on Government obligations (less
amortizable bond premium):
Wholly taxable 18/
25
Subject to declared value excess-profits
26
tax and surtax 19/
27
Subject to surtax only 20/
28
Wholly tax-exempt 21/
29 Other interest
SO Rents 22/
31 Royalties 25/
32 Excess of net short-term capital gain over
net long-term capital loss 24/
33 Excess of net long-term capital gain over
net short-term capital loss 24/
34 Net gain, sales other than capital assets 25/
35 Dividends, domestic corporations 26/
36
Dividends, foreign corporations 27/
37
Other receipts
Total compiled receipts 9/
38
Deductions:
39 Cost of goods sold 28/
40 Cost of operations 28/
41 Compensation of officers
42 Rent paid on business property
43 Repairs 29/
44 Bad debts
Interest paid
45
46 Taxes paid 50/
Contributions or gifts 51/
47
48 Depreciation
49 Depletion
SO Amortization 52/
51 Advertising
52 Amounts contributed under pension plan, etc.
53 Net loss, sales other than capital assets 25/
54 Other deductions
Total compiled deductions
55
56 Compiled net profit or net loss (58 less 55)
57 Net income or deficit 2/(56 less 28)
58 Net operating loss deduction 55/
59 Adjusted excess profits net income 10/
60 Income tax 5/
61 Declared value excess-profits tax
62 Excess profits tax 4/
Total tax
63
64 Compiled net profit less total tax (56 less 65)
Dividends paid:
65 Cash and assets other than own stock
Corporation'« own .took_________________
For footnotes, see pp. 29-50.
10,450
2,488
Net
20,815
507,800 16,892 591,985
406'583 50^473 458^170
1,636
13,974
17,496
514^594 28,027 394,944
156'381
i,288 296'805
297,205 10,160 632,032
469',838 S3¡698 2,637,261
245,886 21,571 1,238,928
8^871 530,586
91^928
50^084
1,042 164^159
2,05l'032 136,245 4,433,059
289,188
Major industrial erouDS 7/ - Continued
Service
Other service,
Amusement,
Notion,
Automotive re- liiscellaneou.
Business
Hotels and other
including
except motion
picture.
repair services,
pair services
service
lodging places
scnoois
Dietures
and garages
band trades
No net
No
net
Net
Net
Net
No
net
No
net
Net
No
net
Net
No net
No net Net
Net
No net Net
income income income incora income incora
income income incane Income income
incora income income
1,432
1,258 1,689
429
3,018
650 1,555
883
779
5,747
1,992 1,795
1,811
804 5,200
2,841
9,228
9,295
8,893
53,790
76,751
166,665
9,723
8,875
1,014
2,303
12,216
5,780 106,672 17,509
67,948 115,418 13,143 69,020
3,619 29,311 12,360
98,083
8,654 .15,873
1,951
3,480 10,918
9,262 163,605 34,901 14,197
5,547 58,834
80,807
45,575
2,098
31
413
2,516
924
89
156
252
375
569
243
4,545
1,826
2,085
203
3,348
2,518
1,909 5,909
6,834 2,765
1,418 282,707
1,196 7,127
20,171
2,749 6,740
3,834
3,456 29,469
39,397
24,236
3,986
2,399 22,965
452 29,897
158 102,882
7,062 3,091
60S 2,549
985
48,202
58,851
1,431 27,657
17'098
4,999
6,384
19,040
16,335
12,517
414,826
337
3,497
1,780
2,030
86,367 12,559
3,489
5,385 32,315
47,987
55,764
4,219 590,752 34,597 158,953 51,126 95,959 45,937
404,001 1,128,750 134,330 365,482 75,905 207,769 35,962 59,480 20,898 24,658
1,739 296,357 14,909 74,501 18,500 45,561 17,860
8,958 12,804
94,033 12,765 28,848
171,503 491,056 54,447 196,557 41,849
3,460
5,126 1,166
210 165,517 14,479 39,289 16,755 15,771
1,986 20,523
5,827
13,650
78,855 243,454 30,942 30,394
5,550 9,169 6,504
7,732 10,696
49,604
431
1,343 1,746
52,925
8,190 3,435
6,042 23,125
3,875
33,183
37,798
69,867
76,084
184,253
275,641
79,155
1,572,143
27,886
7,910
45,740
583,879 1,227,510 145,626 437,654 66,864 580,964 107,585 93,652
8,160 14,844 11,470
2,124 128,414 15,307 23,207
3,768 6,218
9,575 111,243 19,665 12,558
61,126 12,058 34,474
80,417
Personal
service
33,701
393,403
17,295 69,802
87,808 65,864
14,572 45,202
12,250 58,576
24,437
11,658
4,244 1,455,982
3,541 25,014
51,027 291,601
7,808 25,598
39,085 248,579
5,676 23
59,204 24
58 25
6 26
26,146 175,025
50,022 615,636
38,542
88,897
72,749
915,694
295
25
11
(14)
508
58
59
47
35
71
(14)
3,491
142
650
70
1,096
12
326
17
48
3,858
12,101
973
158
1
2
151
825
155
36
21
157
7,060
82,858
2,527
353
1
4
499
12,820
1,812
173
4
27
1,159
37,035
256
51
(14)
38
6,641
22
17
4
19
449
1,917
116
24
(14)
(14)
41
571
(14)
11
5
34
989
7,224
‘500
117
i
3
97
1,441
$98
33
6,147
163
12,266
996
2,595
48
1,384
98
2,397
137
677
1,274
95
38,841
39
3,019
3,408
8,331
3
63,171
41,511
2,21£
4,948,697 294,997 5,250,606
585
279
1
10,038
550,541
240
1,28G
94
8,314
982,521
552
Si
126,422
7.802
3,573
38
10,439
52<
48
(14)
1
1,007
15
5
(14)
270
8
56
(14)
227
25
(14)
2
62
4,593
18
28
133
(14)
_
(14),
26
1,368
3
2
(14)
(14)
51
137
4
6
4
21
2
5
1
14
3,845
25,452
1,055
32
(14)
66
1,289
7
1
3
- 189
4,598
234
72
(14)
(14)
26
1,190
77
JL9
5
57
324
1,618
344
23
825
115
106
4
3,683
78
846
168
607
i
96
255
132
112
87
201
55
2,363
13
860
5
10
(14)
1
302
(14)
10,187
682
1,133 4,959
2,350 1,651
84,513 800,915 128,554 1,015,382 109,810 143,006
353 10,654
231
-
112
28
10E
1,000
54
2,689
n
(14)
1
194
495
1,305
74
20
21
22
27
28
29
30
31
32
340 S3
116
40
1
2,078
69,585
34
35
56
37
38
3,491
4,211 14,481
2,422 15,549
27,921
8,041
14,245
59,661
5,511 815,532 50,495 125,160 19,677 136,302 30,305
7,232
2,738 17,404
23,872
2,327 13,063
6,911
1,659
2,449
3,169 8,711
5,659 11,674
1,527
338
81,902
708
1,388 2,608
16,795
952 6,949
730
102
978
410
204
102
1,061
255
145
82
606
867
389
256
45
1,315 1,730
12,709
2,325 4,950 -1,440
1,318 11,712
1,621
319
31,478
42
273
11
62
2,585
3
15 1,496
2,193
3,215 3,945
27,308
1,262 7,201
2,120
300
1
59
21
61
55
17
3
55
547
208
22
15
43
185
39
656 5,274
1,157
36,456
108
1,152 3,904
609
526
662
751
7
6,417
24
125
61
295
266
224
61
46
3,896
989
15,449
2,679 234,855 14,959 59,983 16,908 60,505 28,017
95,383 17,079 1,309,167 63.55C 257,611 55,304 255,336 78,707
7,195 36/1,063 269,301 36/6,011 74,268 56/4,969 25,222 36/9.122
7,195 36/1,063 269,287 3676,011 74,265 56/4,969 25,165 36/9,123
784
826
1,589
22C
8,751
45,574
2,294
101,438
4,864
11,541
1,327
52,325
236
607
155
28
6,757
31,493
1,77!
82,152
11,776
43,641
134,714
3,129
4,067 36/1,063 134,587 36/6,011 30,627 56/4,969 13,446 36/9,122
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
56
5
6
23
- (14)
439
370
28,899 102,578
9,155
50,605 11,918 45,390
5,969
526,582 50,894 34,845
1,946
9,286 8,825
61,959
16,706
5,300 10,754
3,563
487 1,646
520
6,103
244
260
138
1,434
727 1,051
364
1,656
989
12,559
1,831 5,308
6
84
1,077
41
1,107
12,598
2,681 5,463
55
(14)
(14)
3
29
60
29
101
742
632
107
4,614
8,944
169
41
8
563
183
44
198
6,283
225,672 30,261 22,621
930,956 114,825 132,970 30,255
82,426 36/5,015 10j036 36/1,337
82,391 36/5,018 10,034 36/1,337
898
451
— - 1,330
25,638
- 2,187
18,707
232
80
- 1,077
20,629
39,568
5,544
42,858 56/5,015 6,692 36/1,337
20,165
906
13
14
15
16
17
18
19
4,336
11,370
12,065
2,822
27,563
1,857
17,556
19,172
69,867
125,489 * 367,913
397,122 562,647
36,880
5.829
9
4,917 6,658
21,788 15,160
8,816 32,239
,2,735 16,663
29,882 57,286
1,325 7,860
21,998 57,415
23,537 23,872
76,084 184,253
4,808,588 275,585 806,262
61,483 15,675 4,228,776
193,472 16,756 91,500 23,787
193,074 22,007 353,964 54,806
18,81C
1,936 48,100
8,415
41,947
4,177
6,128 21,795
40,052
5,069 12,529
2,152
1,542
149 1,865
304
23,223
3,581 2,412
760
4,166 16,813
41,20S
3,035
1,183
25
10 1,028
41,855
5,139 16,903
3,454
2
51
3
36
28
28
31
65
943 9,392
9,05£
1,210
686
67£
32
10
2,791
316
246
1,095
266.26C 25,835 165,478 30,940
873,41£ 92,572 742,846 133,386
109,102 36/8,060 58,069 56/4,835
109,075 36/8,060 58,050 36/4,853
5,402
1,249
11,537
34,751
24,887
13,144
507
255
26,95C
9,485
- 22,885
—
52,345
56,758 36/8,060 35,184 36/4,833
8
10
11
12
11,727 9,810
25,305 33,259
24,191 49,079
5,838 7,659
10,431 74,267
2,180 10,574
28,085 85,888
41,907 18,102
79,155 275,641
17,027
4,593
37,731 30,958
94,487 12,866
6,206
31,637
131,789 27,125
3,909
15,142
153,908 22,049
12,002 19,787
580,964 107,583
80,024
5,786,350 228,84C 452,441
30,666 12,303 2,233,890 219,788
35,833
115,081
9,12£ 200,012
3,276 195,355
30,714
41,558
87,555
1,44£
11,424
16,941
57S
7,503
1,689
6,174
43,987
7,814
7,180
1,05S
15,476
43,941
2,741 124,011
153
3,428
3£
7,810
19,439
24,019
2,751 115,645
166
85
180
210
22
645
641
126
6,127
28,947
2,081
67,970
776
4,325
15C
18,260
4,972
2,733
1,240
6,302
572,304 57,562 1,051,827 156,447
4,683,983 503,279 4,613,379 591,498
264,713 36/8,282 637,227 36/40,957
264,666 36/8.284 637,069 56/40.961
1,748
11,443
81,614
251,980
129,256
60,858
2,107
1,452
180,857
62,975
125,266
312,220
159,448 36/8,282 525,007 36/40,957
7
658
20,170
1,033 325,691
897 125,089
48,840
319
3,879 268,006
27 116,637
1,244 587,660
2,274
4è,S63
7,910 1,572,143
5,081
15,463
5,893
5,740
29,014
217
14,151
16,271
66,864
_
6
1,608 1,908
9,111 3,335
2,519 5,364
815
1,657
10,559 14,012
524 1,256
4,519 14,256
6,359 1,403
27,886 45,740
53,116
39,531 19,771 13,440
194,056 515,977 78,687 37,952
8ê,900 104,526 18,965 40,759
7,763 28,858
31,594
76,530
172,048 227,132 32,862 136,378
33,977
414 6,394
10,481
140,051 503,872 50,167 155,599
184,782 134,961 55,061 16,199
583,879 1,227,510 145,626 437,654
h
2
S
4
5
3,558
26,007
7,841
5,711
23,117
433
24,836
8,109
93,952
74,989
9,656 112,611
82,893 17,594 999,228
9,303 460,638
173,635
9,458 214,539
81,497
534,386 54,680 935,726
70,035 • 3,549 192,648
748,032 20,883 1,388,172
23,622 22,380 263,925
2,031,052 136,245 4,433,039
1,727
85
1
506
538
38
264
113
5
33,748
20
250
(14)
3
5,005
26,078
1,455 8,526
70
16,015 1,578,468 "57,538 331,879
37
70,533
4.576
47
9,775
790
83
55
184
189
2
(14)
1,665 2,880
50,554 280,558
172 65
il 3,125
-1
383 ______ L 66
Table 5. - Corporation income and declared value excess-profits tax returns with balance sheets, ¿/ 1945, by major Industrial groups, for returns with net income and returns with no net income» 2/ Number of returns,
assets and liabilities, compiled receipts, compiled deductions, compiled net profit or net loss, net Income or deficit, and dividends paid by type of dividend; also, for returns with net income» Net operating loss
deduction, adjusted excess profits net income, income tax, declared value excess-profits tax, excess profits tax, total tax, and compiled net profit less total tax - Continued
ají
Service Continued
Service
not
Totalfinance insurance,
real estate, and lessors
of real property
Net
No net
Net
incop^ income __ income
1 Number of returns with balance sheets 38/
2
3
4
5
6
7
8
9
10
11
12
13
14
IS
16
17
18
19
20
21
22
23
24
2S
26
27
28
29
30
SI
32
33
34
SS
36
37
38
59
40
41
42
45
44
45
46
47
48
49
S0
SI
S2
S3
54
SS
56
57
58
59
60
61
62
63
64
65
66
Assets»
Cash 39/
Notes and accounts receivable
Less: Reserve for bad debts
Inventories
Investments, Government obligations 40/
Other investments
Gross capital assets ¿j/ (except land)
Less: Reserves
Land
Other assets
Total assets 42/
Liabilities:
Accounts payable
Bonds, notes, mortgages payable:
Maturity less than 1 year
Maturity 1 year or more
Other liabilities
Capital stock, preferred
Capital stock, common
Surplus reserves
Surplus and undivided profits 45/
Less: Deficit 44/
Total liabilities 42/
Receipts:
Gross sales 16/
Gross receipts from operations 17/
Interest on Government obligations (less
amortisable bond premium):
Wholly taxable 18/
Subject to declared value excess—profits
tax aid surtax 19/
Subject to surtax only 20/
Wholly tax-exempt 21/
Other interest
Rents 22/
Royalties 25/
Excess of net short-term capital gain over
net long-tea capital loss 24/
Excess of net longterm capital gain over
net short-term capital loss 24/
Net gain, sales other than capital assets 25/
Dividends, domestic corporations 26/
Dividends, foreign corporations 27/
Other receipts
Total compiled receipts $J
Deductions:
Cost of goods sold 28/
Cost of operations 28/
Compensation of officers
Rent paid on business property
Repairs 29/
Bad debts
Interest paid
Taxes paid 50/
Contributions or gifts 51/
Depreciation
Depletion
Amortization 52/
Advertising
Amounts contributed under pension plan, etc*
Net loss, sales other than capital assets 25/
Other deductions
Total compiled deductions
Compiled net profit or net loss (58 less 55)
Net income or deficit 2/ (56 less 28)
Net operating loss deduction 55/
Adjusted excess profits net income 10/
Income tax Jj
Declared value excess-profits tax
Excess profits tax 4/
Total tax
p k £ o fit
1688
to ta l
(5 6 1883
65)
Cash and assets other than own stock
Corporation*s own stock________________
87
73
No net
income
81,671
2,580
288 37,411,858
1,774 1,034 28,753,631
63
1
62,983
659
525
32,535
712
21 112,513,859
286 46,530,129
2,109
5,500 1,028 11,182,020
495
1,211
2,770,747
2,844
88
3,055,480
278
132
3,581,767
15,181 2,904 240,207,549
1,319
290
1,506,282
508
425
1,913,589
4,115
542
7,315,435
1,254
687 199,369,453
27
514
2,244,423
3,739
753 10,640,656
596
28
1,862,067
4,737 . 280 16,959,581
914
414
1,605,917
15,181 2,904 240,207,549
34,515
24,246
488,227
13,706
641
1,500
905,745
160,910
-
- 18,893
444,259 1,401,416 230,774
53,551
2,970,367 1,632,437 500,575
- 61,863
3,091,612 151,963,595 1,747,299 150,856,887 1,546,315 26,988
417,992 1,814,601 265,176
156,575
16,010 10,698
2,259,546 6,617,809 822,185 2,942,070
93,312 74,485
151,463 1,673,922
94,192 1,117,484
17,921 5,781
1,607,695 10,045,582 551,467 5,409,969
56,400 46,218
2,519,605
724,489 1,095,129
16,879 129,551 32,034
8,911,336 175,328,616 3,277,447 160,466,106 1,600,407 246,421
55,087
3,243,400
8,221
659,938
25,286
658,086
8 (14)
'
“
11
8
284
4
■*
*
(14) (16)
1,294,480
279,623
15,495
4,213
4,689
190,026
1,893,907
1,174,777
103,159
28,815
9
96
*
(14)
*
156
255
17,300 5,292
6,048
692,800 55,402,829 451,848 34,597,607 343,204 25,235
749,411 27,938,591 533,018 26,074,220 211,399 70,596
12,949
55,514
6,342
245
«•
15,556
9,510
2,749
1,396,545 87,934,170 902,906 86,375,292 823,353 17,781
1,983,275 21,640,915 1,182,751 11,499,304 183,825 104,330
3,481,306 1,452,401 155,201 1,050,309
28,222 11,426
827,220
293,555
41,408
145,470
6,234 2,029
1,100,441
188,786
45,546
81,257
5,875 6,660
334,171 1,108,486
75,578
933,588
10,764 12,666
8,911,336 175,328,616 3,277,447 160,466,106 1,600,407 246,421
2,522
451
14,198 4,585
24
bnvuatuius ox uuxxarU______ _ -
Finance, insurance. real estate, and lessors of real property
Finance
Banks and trust Long-term credit Short-tens credit Investment trusts Other investment
Total finance
companies
agencies, mort- agencies, except and investment
companies, includ- commodity exgage companies, banks
companies 11/
ing holding
change brokers
except banks
12/ 13/
Net
No net
Net
No net Net
No net
Net
Net
No net
No net
Net
No net
Net
No net
Income
407
24,359
391,054
9,010 12,798
862,585
239,396
10,245
639
837,546
234,280
9,515
572
75
4,145
53,47^
230,Ol“
8,286
2,122
5,816
142,170
1,014,585
102,677
42,154
24,949
28
2,515
22,824
5,846
2,075
885
3,720
137,867
819,351
85,205
1,277
17,951
451,545
11,950
360,859
5,726
205,395
138,940
577,626
21,819
150,695
9,588,385
11,480
14,204
289
20,164
1,024,068
85,124
443,404
20,508
73,246
4,098,846
3,491
3,772
81
5,245
86,154
5,001
15,678
811
43,375
2,798,508
1,279
242
53,600
5,242
8,970 2,326
105,148
26,338
1,069
295 ¿4/455,823
34/42,511
540
ISO
141,105
29,013
145
47
86,959
27,554
17
6
68,930
27,439
102
27
557,156
120,156
582
54
467,759
98,886
24 (16)
21,294
463
253
88
271,943
70,729
1
20,225
2,540
•
7
6,440
597
~
49
52
50,965
5,900
58
42,162
417
(14)
57,000
“
97,862
5,007 2,565
5,527,589
685,257
15,695 5,839 55/5,694,096 55A.258.708
1,606 56/547
5,894,289 ¿6/214,635
1,606 £6/547
5,704,264 ¿6/218,780
23
34,677
687
73,441
•
272
591,718
7
2,939
•
540
59,712
819
654,569
788 36/547
5,259,920 ¿6/214,635
224
17
1,050,609
25,570
104.558
529
For footnotes, see pp. 29—50.
wm
17,783
293
36,032
5,814
514,082
12,251
53,834
2,605
17,004
992
64,271
22,240
329,164
26,676
149,069
5,055
16,462
149
55,685
3,484
3,338
108
5,205
76
57,056
1,117
34,065
157
27,259
16,662
43,442
1,067,531
2,227,818 141,097
1,871,028 ¿6/54,965
1,728,858 ¿6/57,478
10,160
23,739
380,959
1,195
19,447
401,601
1,469,426 36/54,963
787,148
8,731
96.655
115
992
7,705
-
2,365
687
1,301
399
12,139
64,507
6,880
94,423
32,757
139,988
46,478
90,906
97,033 532)ISO
37,364 107,766
60,241 1,260,670
136,348 1,987,729
25,258 550'l78
151,675 2,533,490
219,168 213,051
547,985 6,589)825
2 )7 9 2
963
226
132,925 5,934
280,026 4'782
343 '220
128
10,944 673,910 6,250
527)915 958)294 23'073
20,629
36,571 2,254
3¡729
18)569 '294
ll)076
12,801
152
11)958
55¡141 1,977
652,776 2,130)956 43,909
24,877
555,011 6,078
U9,887 776,190 10,305
215,514 459¡508 3¡553
58,280
9 7 ) 2 4 7 5¡431
125)777
28,670 2,282
27b)180
92,238 8¡576
30,198
1 7 ) 2 5 9 5,514
226,548 154,656 10¡124
421,484
9,825 7¡934
652)776 2,150)956 4 3 ) 9 0 9
1,714
97,032
8,814
-
-
17,241
59)l27
66
618
85,452 1,597
165
6
26
2
1,309
25
121
1
7,572
667
U9
21
2,874
400
156
21
10,969
5,935
23
1,944
10,564
2,708
12
418
i
54
7,580
1,264
159
147
(14)
3
1,569
421
5
22
9
40
95,681
1,132
85
298
(14)
51
3,855
206
14
60
34
965
21,121
688
4,241
5,578
1
51
402
38
188
156
s
647
57,718
8,485
1¡659
'805
5
19
1,545
362
52
1,623
2,790
82
2,181
87
108,998
377
25,851
570
468
784
306
195
2
1
1,056 2,184
38,221 28,130
60
22
1
459
4,368
172
2,384
3
9,956
210,286
27
62
«
745
14,026
7,371
151,725
3,878
5,709
314,548
79
1,488
19
246
3,166
458
261,729
15,759
6,165
438)904
56
1,545
59
1,694
6)645
70,601 2,686
IO'165
68
57
5,204
206
206)726 5,235
11,656
55
9,514
4,490
5¡006
4
15'055
2,047
6,250
664
9 )0 2 3
862
6,514
537
682
66
1,599
. 91
114
265
so
67
'769
79
10,106
1,509
780
608
1,802
1,695
22,000
1,475
12,740
2,385
U,171
30,458
6,262
368
4,699
417
6¡692
560
578
5
568
1
1,156
5
1,988
158
425
115
3)064
247
1
1,850
57
1,223
8
_
«
7
3
5^100
6
8,975
495
69
3
'257
4
«
688
14
69
616
51
US
52
412
1,965
1,811
2,056
71,748
5,153
33,575
1,751
43'4 OI
3 '844
153,807 16,315
62,241
8)096 1 2 1 ) 5 4 4
20¡802
56,479 36/2.288 252,307 36/4.931 317,360 56A4,157
56,439 ¿6/2,319 251,542 36/4,962 316,713 36/14)176
383
2,029
7U
_
_ 1,216
2,704
155
18,801
14,359
37)245
_
_
56
65
43
..
2,150
123
990 ■
21,008
14,547
38,278
55,471 36/2.288 237,761 £6/4.931 279,082 36A4,157
24,359
389 210,490
1,420 254,659
1,196
899
759
13
15
1,370
(Ì4)
19,299
397
52¡791 1,445
5 '866
'539
'565
8
278
60
9,555
180
6)634
220
514
4
1,307
55
4 (16)
1
(14)
Ì,9Ì6
56
1
1 )1 2 0
16
201
69,709 2,981
147'5SL 5¡908
5 9 )1 7 5 36/673
57'055 36/960
705
5,279
14¡651
'2 O8
2,554
17)413
41.762 ,£6/673
7,945| 121
65
4,070
950
345
9,951
6,114
1,945
22
1,092
1
742
4,474
676
129
230
2,977
855
45
336
8
225
1,026
141
59
3,171
1,405
550
5
124
(14)
.
24,155
367
337
49
31,267
76
20
7
24,650 '6,115
216
5,041
804,197
15,529 9,504
2,222
1,659,790
46,622 20,547 12,003
1,158,513 ¿6/8,401 7,783 36/7.635
1,000,646 ¿1/10,346 7,729 ¿6/7,638
4,689
652
13,216
62
J
282^129
1,969
—
_
744
15
_
•
11,042
38
293,915
2,023
844,599 ¿6/8,401 5,760 36/7,635
277,070
1,723 1,792
760
91.189
74,030
816
9,710 187,520 13,262 235,235
55,969 122,879 40,972 385,826
1,582
484
414
27,295
523
1,963
8,159 451,558 16,067 227¡741
8,726 3,160,368 246,173 5,526,858
2,737
50,337 15,796 183'882
1,025
17,598
53'548
5,220
645
14,220
4,715
59¡177
2,079
24,739 16,633
49)989
85,944 3,993,538 347,985 6,589,825
7,956 391,034 18,284
57,098
34,557 184,450 17,983 330,989
14,242 100,063
3,615 555,501
9,616 104,742
5,724 218,220
41,574 196,962 27,628 1,U5,591
1,151
2,584 128,284
23,213
22,903 167,208 ' 9,853 1,831,206
58,661
3,852
6,606 335,574
81,042 1,237,850 85,944 3,993,558
m
156
240,511
39,562
14,693
50,722
249,192
121,935
13,445
45,130
176
2,218
8,850 121,129
14,255 896,431
206
25,994
_
3,279
3,232
98,157
34,414 110,874
7,274
26,264
984
12,960
9,254
2,702
4,971
15,969
81,042 1,237,850
22
4
100
32
5
45 (14)
2,120
zbi
5'958
185
1,213
101
1
144
1,199
35
9,684
2,0341
57
-
__Co:
For
3 own stock___
I m pp. 29—30.
-1
XYI
-I
1 ,U 5 U ,6 0 9
104.5581
23,370
529|
787,148
8,731
96.6551_____ 1151
277,070
1,723
91,189\______ 841
1,792
760
24,3591
389
210,4901
1,420
254,659
221 ______4|______ 7591_____ 15]_____ 899[_____ 15j
1,8701
1,196
(14) |
7,945
2,054)
1211 65
-f 66
Table 3« — Corporation income and declared value excess—profits tax returns with balance sheets, 1/ 1945, by major industrial groups, for returns with net income and returns with no net incomet 2/ Number of returns,
assets and liabilities, compiled receipts, compiled deductions, compiled net profit or net loss, net income or deficit, and dividends paid ty type of dividend; also, for returns with net incomet Net operating loss
deduction, adjusted excess profits net income, income tax, declared value excess-profits tax, excess profits tax, total tax, and compiled net profit less total tax - Continued
(Money figures in thousands of dollars)
1
2
3
4
5
6
7
8
9
10
11
12
15
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
50
31
32
33
54
55
36
57
38
39
40
41
42
43
44
45
48
47
48
49
50
51
52
53
54
55
frvnKttT»nf returrfs with balance sheets 387
issets:
Cash 39/
Notes arid accounts receivable
Less: Reserve for bad debts
Inventories
Investments, Government obligations 40/
Other investments
Gross capital assets 41/ (except land)
Less; Reserves
Land *
Other assets
Total assets 42/
Liabilities:
Accounts payable
Bonis, notes, mortgages payable:
Maturity less than 1 year
Maturity 1 year or more
Other liabilities
Capital stock, preferred
Capital stock,* common
Surplus reserves
Surplus and undivided profits 43/
Less: Deficit 44/
Total liabilities 42/
Receipts:
Gross sales 16/
Gross receipts from operations 17/
Interest on Government obligations (less amortizable
bond premium):
*
Wholly taxable 18/
Subject to declared value excess-profits tax and
surtax 19/
Subject to surtax only 20/
Wholly tax-exempt 21/
Other interest
Rents 22/
Royalties 25/
Excess of net short-term-capital gain over net long
term capital loss 24/
Excess of net long-term capital gain oyer net short
term capital loss 24/
Net gain, sales other than capital assets 25/'
Dividends, domestic corporations 26/
Dividends, foreign corporations 27/
Other receipts
Total compiled receipts 9/
Deductions:
Cost of goods sold 28/
Cost of operations 28/
Compensation of officers
Rent paid on business property
Repairs 29/
Bad debts
Interest paid
Taxes paid 50/
Contributions or gifts 31/
Depreciation
Depletion
Amortization 52/
Advertising
Amounts contributed under pension plan, etc*
Net loss, sales other than capital assets 25/
Other deductions
Total compiled deductions
Compiled net profit or net loss (38 less 55)
Net income or deficit 2/ (56 less 28)
Net operating loss deduction 53/
Adjusted excess profits net income 10/
Income tax 5/
Declared value excess-profits tax
Excess profits tax 4/
Total tax
Compiled net profit less total tax (56 less 63)
Dividends paid:
Cash and assets other than own .stock
Corporation’s own stock
For i*ootnotes, see pp. 29-30.
Insurance
Finance - Continued
Total insurance
Finance not
Other finance
carriers, agents,
companies
allocable
etc*
No net
No net Net
No net Vet
Net
income
income income Income income income
4,943
1,593
1,734
596
553 1,597
28,984 12,872
26^880 17^606
98
*378
927
3,390
12',605 1,613
38^434 52^741
72^811 33^913
‘38^158 10^693
i'ooo
736
5é941
5,548
150^850 115,822
8,471
74,198
81,733
*774
878
77,326
242^451
20,801
5^622
lié233
10é846
513^070
34,741 32,928
2,059 48,182
4,475
11^282 27é726 52^196
21^303 49é512 200é040
4*653
9é439 30é374
67^071 46é396 143é662
6éoi5 12é925
18^798
33,633 10é964 89é202
18^837 7lé030 94é439
150^850 115',822 513,070
8,045
7^656
135
.57
(14)
648
3,796
34^563
340
333
483
29
1,065
56,939
6,126
2,330
2^242
401
398
25
582
695
43
3,056
341
1,081 24,967
5,845
1
47,546 2
128,062 3
1,299 4
31,715 5
27,971 6
28,536 7
140,519 8
69,815 9
10,982 10
22,450 11
366,668 12
30,018
189,561
65,973
IS
78,073
190,916
19,587
19,529
3,021 482,417
65;453
3,102 4,557,789 1,909,925 1,111,834 '556,767
93,825 115,708 201,868
303,141
500,639
2 ,759
33,956
28,864
121,492 105,190
1,290 299,252
938,561 994,076 57è,064 262,583
10,851 2,288,305
34,792
6,001
22,695
50,388
882 ,158,484
559,268 616,805 166,166 416,438
5 525 1,959,782
273,361
30,586
150,061
884,013
708,959
8 848
48 599 9,935,047 3,441,451 2,873,919 1,041,264 1,252,138
30,167
36,786
63,845
13,961
94,138
9,739
93,526
41,467
366,668
14
15
16
17
18
19
27,056
712,671
7,601
178,585
2,745
213
427,458 190,000
È
29 536
486,838
1,878,933
119,611 23
341,877 24
312
24
20
4
4,805
407
769
45
808
101
114
22
1,481
104
420 25
22 26
266
20,778
5,646
33
4
153
1,840
8,980
360
1,006
301
11,603
-
3 ,0 2 1
25,806
10,170
3,102
13,375
104,226
922,706
925,464 46,773,315
32é540 46,811,393
9,947
1,169
2,459
25,380
38',087
111,685
675,718
122,-535
193,171
740,447
6,967
882
5j552
325,269
330,794 4,277,248
83,00C 4,337,411
258,253
13,385
20,408
267,102
180,695
349^563 52,069,967 1,151,174 51,722,843 1,102,575
1,526 1,872,643
5,622
243
456,994
1,682,644
-
397,338
251,772
59,967
426,282
39,719
4,367
3,507
425,969' * 4,346
3,504
39,695
821
47,116
854,092
113^704
82
816
47,102
852,389
112,391
32
825
1,524
5,067
1,808
3
795
14
1,705
1,313
50
177
166
171
15
8
49
634
23,651
840,302
2,485
2,741
13
98
5,153
201,408
1 ,0 0 2
33
1,525
5,233
1,980
18
803
401
3
106
1,599
118,094
58,437
123
5,946
1,149
40
56,619
1,938
7,519
15
52,921
15,058
23
154
1
38,021
1,660
31,659 1,777,552
7,691
1,162
16
11,257
416,666
540
1,617
13
7,706
199,410
26,348
5,986
25,199
355
115
103
117,548
1,145
(14)
11,720
478
6,643 3,512,577
124
9,167
192
2,959
492,888
207
114,192
987
4,049
3,306,498
27,544
248
1,234 34/49,737
17,735
328
114
1,370
784
1,291
1^532
3,398
72,214
'646
1,934
20.611
404
16
7,768
770
60S
2,568
15,178
70
1,246
1,231
4!
7,995
894
182
6,963
98
5,180
1,152
1,642
40
474,104
20,964
5é02€ 1,781^987
31^291 13^925 5^,992^086 35/519^937
13,718 86/7,28« "1,520,491 "56/27,049
13,244 36/7,47] 1,473,374 35/28,574
2,026
505
1,183
12,310
75,204
3é071
149
42
10,303
927
85j656
4,040
9,678 36/7,281 1,434,835 36/27,049
2,70
72,779
L35,294
1,641
_
_
906
4,987
Net
No net
income income
3,416
7,310
Net
No net
income income
2,890
2,170
10,170
13,375
38,079
15,433
64,728
6,967
60,163
7,022
347,124
18e
3,48C
*150
14
66
415
No net
income
24,704
Construstion
145,232
145,232
_
1
474
6,527
*893
227
968
117
(14)
ì,6Ìl
14,633
6é932
31^247 17^421
25,692 36/9,591
25,688 36/9,605
486
1,924
8,734
21
1,623
10,378
15,314 36/9,591
Net
income
49,592
Lessors of real
property, ex-*
cept buildings
30,018
47,874
(14)
Ì4
1,228
lé857
lé787
25
04
434
185
Real estate, includ
ing lessors of
buildings
21,420
53,882
41,361
8,521
3,892
28,659
347,124
261
18
985
3,736
535
73
437
1,682
lé301
114
358
73
Insurance
agents,
Insurance carriers
brokers.etc*
No net
Net
No net
Net
income income
income
income
1 ,300
293 3,555
1,388
15,389 208,955
69,990
139,291
8,476 484,699
22,290 435,748
173,277
68,810
20,826 590,936
3,532
51
6 ,3 7 4
149
182
7,679
21,366
9,615 • 1,658
1,192 127,267
4,604 114,527
51,488
45,547
318,868
1 ,294
62,609 103,527
321,049 224,674
8,663 991,285
7,089 6,769,123 2,393,711 2,557,989 901,231 363,604
678,777 315,958 102,295 191,014
1 ,567 2,146,872
36,576
98,646
956,138 141,809
590 2,710,959
56,481
37,648
71,607
87,974
3,410 202,363
1,041,264
1,252,138
2,873,919
48,599 9,935,047 3,441,451
2,214
46
241
384
905
170
292
4,355
*546
347
105
1,330
40
carriers, agents, etc*
97,796
106,272 1,381,561
25,87« 1,454,340
20,826
135,294
123,526
_
182
1,031
1,641
_
ljl7C
442,193
443,487 24,187,913
33,286 24,209,333
408,203
416,866 a , n t , m
105,88£ 23,673,257
24,074
361,147
31,163
44,375
402,508
3,174
7,843
4,740
16,362
13,231
1,720
10,034
13,927 ' 2,310
10,651
131,762
135,172 2,170,652
19é054 2,199',311
349',563 52,069,967 1,151,174 51,722,843 1,102,575
16
(14)
404
21
. 178 1,049
10
(14)
378 1,608
7,830 45^009
. •
119,928
5'.981
8,82!
6C
33
5
148
108
9,145 3,355
158
192
1,300 7,671
461,228 206,079
(14)
1
549
4,759
13,797
12,756
41,571
20,557
88,060
21,031
67,093
25,287
67,765
4,393
3,117
74,575
193,975
232,376
76,000
230
2,729
63,456
188,542
115
513
51C
665
1,542
5,907
311
920 2,047
5,948
57
47
1,021
136
92C
6,043
69,425
6,544
55
84
5,125
1,067
157,522
460,766
457,826
93,455
i
e,278
1,688,528
532,213
35/1/315,157 35/486,207 176,949 3!,730 1,374,441
1,491,361 36/24,979 29,130 36/2,070 403,112 36/115,547
1,444,258 36/26,503 29,116 3§/2,071 402,478 3^/115,645
21,397
356
1,669
26,485
3,525
* 8,785
103,624
7,097
68,107
1,528
111
38
20,711
2,866
7,437
125,863
10,075
75,583
1,415,778 36/24,979 19,057 56/2,070 277,249 36/115,547
437
34/9,835
11,261
1,080
594
742
68,757
1,379
19,457
10
727 27,108
34/1,541 39,901
3,245 6,475
290
473
697
506
791
2,333
12,689 3,457
556
54
1,053 1,154
7,042
7,126
1,322
297
297
235
489
17
213
108,359
5,85!
8,723 11,570
126
5C
102
1C
81,803
1.882
6,85*7
154
45,527
(14)
1,622
10,772
397
23,999
724
28,380 2,428,092
174
102
4
140
351
2,728
38
248
20
21
22
27
28
29
30
31
52
1,980 33
552
512
(14)
6,176
474,659
54
55
36
37
58
99,265 39
189 364,694
1,546,505 294,205 40
25,563 41
1,235 101,616
3,945
3,235 42
10,608
811
2,442
5,492 43
12,934
305
819
1,351 44
2,275
203
250
45
2 ,5 9 9
5,921
16,337
32,485
6,292 46
26,168
4,675
14,100
65 47
13
1,809
169
9,595 48
25,141
2,542
7,106
47 49
524
2,319
16,357
1,718
270 50
567
11
1,228 51
4,731
10
25
822 52
2,190
21
114
2,293 53
569
6 ,5 9 5
2,046
54,326 54
10,189 176,342
17,505
45,46/ 2,283,347 506,649 55
99,751
99,660 36/17,077 144,746 36/31,990 56
99,554 36/17,083 144,593 36/32,130 57
58
5,588
1,094
59
41,953
10,907
60
28,176
31,950
61
1,014
68
62
32,544
9,251
63
61,735
41,249
64
36/31,990
36/17,077
83,011
58,411
2,020
61,730
61
957
27,833
3*02*7
1,376 65
175 66
Table 5. - Corporation income and declared value excess-profits tax returns with balance sheets, 1/ 1945, by major industrial groups, for returns with net income
and returns with no net income! 2/ Number of returns, assets and liabilities, compiled receipts, compiled deductions, compiled net profit or net loss, net income
or deficit and dividends paid by type of dividend; also, for returns with net income! Net operating loss deduction, adjusted excess profits net income, income
tax, declared value excess-profits tax, excess profits tax, total tax, and compiled net profit less total tax - Continued
Cash and assets other than own stock
Corporation's own stock_______________ j______ _
pp. 29—50.
For footnotes.
105,857
'16Q.697
1;514
1491655
118,466
14ll877
5871852
2571555
209^707
30^605
1,2451845
155,715
97,632
15,685
23,542 148,588
1,482
78
18,602 142,809
4,193 112,908
40,311 134,796
108,077 531,616
35,891 245,130
49,934 203,519
26,825
8',510
230,883 1,152,080
12,329 3,578
20,135 8,205
5
74
18,023 3,091
4,053 3 213
38,350 3,740
91,426 44 387
32,249 8 409
47,326 4 752
7,514 3 085
206,832 65 638
1,569
3 722
56,612
17,474
66,905
56,196
58,207
16,103
25,124
8l930
111,888 436,521
56,750
41069
58,547 378,698
53,965
72',177
250,883 1,152,080
15,492
52,410
14,213
7,365
89,332
3,998
48,318
51,354
206,
1,421 1 125
2,723 1 675
1,518 "3 220
242
1,313
20,195 7 067
46 2 056
9,720 9 542
52y
18,980
19,526 28,127
417 22,855
576 5,376
703,184
118',075
61,726
21,930
671,379
109,072
60,201
19 463
8,950
3,628
629
397
51
4
569
395
SO
4
32
2
4
153
2,427
8^697
2^990
'248
(14)
2
325
1,805
116
41
4
148
2,242
8,309
15,279
607
1,308
12^420
1*390
9^401
8761604
1,059 4,647
3,103 3,904
27
2
307 3 734
104 2,345
1,916 3,341
12,353 11 849
2,619 3 797
2,458 1 435
695
845
19,526 28 127
4 762
127,229
959
9 970
9 885
1 465
24 099
3 153
30 112
18 767
65,638
58,696
78^550
71^312
26^831
4671686
61^959
.4181552
73^255
1,2451845
Fishery
Net -1Vo net
income .ncome
27,060
•29,855
O
tl
o
CD
Hiimher of returns with balance ■sheets 38/
Assetsi
Cash 59/
Notes and accounts receivable
Less! Reserve for bad debts
Inventories
Investments, Government obligations 40/
Other investments
Gross capital assets 41/ (except land)
Less! Reserves
Land
Other assets
Total assets 42/
Liabilities!
Accounts payable
Bonds, notes, mortgages payable:
Maturity less than 1 year
Maturity 1 year or more
Other liabilities
Capital stock, preferred
Capital stock, common
Surplus reserves
Surplus and undivided profits 45/
Less! Deficit 44/
Total liabilities 42/
Receipts!
Gross sales 16/
Gross receipts from operations 17/
Interest on Government obligations (less amortizable
bond premium)!
Wholly taxable 18/
Subject to declared value excess-profits tax and
surtax 19/
Subject to surtax only 20/
Wholly tax-exempt 21/
Other interest
Rents 22/
Royalties 25/
Excess of net short-term capital gain over net long
term capital loss 24/
Excess of net long-term capital gain over net short
term capital loss 24/
Net gain, sales other than capital assets 25/
Dividends, domestic corporations 26/
Dividends, foreign corporations 27/
Other receipts
Total compiled receipts 9/
Deductionsi
Cost of goods sold 28/
Cost of operations 28/
Compensation of officers
Rent paid on business property
Repairs 29/
Bad debts
Interest paid
Taxes paid 50/
Contributions or gifts 51/
Depreciation
Depletion
r
Amortization 52/
Advertising
Amounts contributed under pension plan, etc.
Net loss, sales other than capital assets 25/
Other deductions
Total compiled deductions
Compiled net profit or net loss (58 less 55)
Net income or deficit 2/ (56 less 28)
Net operating loss deduction 35/
Adjusted excess profits net income 10/
Income tax 5/
Declared value excess-profits tax
Excess profits tax 4/
Total tax
Compiled net profit less total tax (56 less 65)
Dividends paidi
Agriculture, forestry. and fishery
Agriculture and
Total agriculture,
Forestry
services
forestrv.and fishery
No net
No net Vet
Net
No net
Net
l
i
c
o
rne income
income
income
income
Income
3,139
1 ,521
1,702
5,412
270
134
2
1,360
88)375
-
1
28
-
202
298
1 762
112
41
167
356
190
41
23
38
4
-
(14)
(14)
19
32
1
5
12,976
475
1,685
133
617
2 ,7 9 9
613
12,360
1,390
8,747
831,205
(14)
(14)
2
650
33
•355
1,295
84,095 16,094
266
123
45
4
27
1Ï
- (14)
299
31
1,238 29,305
314
52,289 -1,929
55,585 440,788
465’
,048
202
12,198 I,945
40,780
13,659
451456
60
509
39,897
3,179
3,323
41^301
3
47
945
7,219
970
7^458
39
92
10,647
1,859
2,147
111552
77
3S
765
275
378
'823
125
379
2,101
5,047
2,271
5,561
148
589
1,975
18,714
19^676
2,170
5
22
1,301
22
1*339
63
225
3,306
22,062
5,568
22^802
254
569
48
684
1^256
302
1
45
17
46
17
2
1
235
5,329
240
5,383
K
53
1,599
53
1^637
1,300
1C
,221
*817
688
4,551
460
94,927
14,173 L.212
15)235
99,105
3,045
95,921 13.57C
102^520 690,465
728^990
1471614 56/14',146 140,742 36/11,827 2,524 56/1,807
147^461 36/14,147 140,594 36/11,828 2,51£ 36/1,807
12E
1,927
2,196
K
39,601
41Ì569
682
30,890
321238
580
595
2É
28,672
50,216
712
60,141
63*046
1,812 36/1,807
8 0 )600 36/11,827
841568 36/14,146
7
23,886
89S 1,312
905
25,407
905
3C
30
16,351
2,711
895
192
593
21
135
373
32
515
•
'52
20
118
2,966
24,956
1,348
1,348
143
L,937
666
1,518
2,192
2,156
205
16
297
304
2
271
36
45
4,298
1,024
150
151
4,525
Nature of
busineì?s not
allocai)le
No net
Net
income income
1'01*
33,072 17,571
43,986 37,578
772
1,108
4,074
10,255
3,882
14,2-21
41,600 50,769
58,317 53,645
24,914 11,309
16,758 12,269
7,666 10,903
199,853 178,610
1,224' 30,520
561
1,062
373
253
2,361
25
509
1,843
4,525
26,891
14,463 14,732
18,640 49,896
14,400 17,243
11,932 24,931
58,352 140,382
4,212 15,965
65,416 47,253
18,082 158,684
199,853 178,610
1,108 72,821
1,891 47,522
13,343
7,379
110
4
19
2
(14)
4
5
“
(14)
(14)
«
34
3,042
2,760
236
ISO
1
36
184
554
134
89
2,825
258.
1
83
1 ,4 9 7
772
828
2
4,963
134,575
46
66
(14)
1,165
23,275
982 56,429 11,015
2,422
1,259 16,020
2,681
84 12,803
1,043
22 1,982
359
250 1,336
477
809
27
1,016
46 1,278
787
49 2,721
7
162
(14)
891
198 2,392
131
89
3
109
238
4 1,025
1
208
1
1,677
353
31
7,980
602 22,462
3,554 120,180 30,728
36/512 14,395 36/7,453
36/512 14,312 36/7,490
482
2,014
“
3,349
'“
106
♦*
1,748
“
5,203
“
36/512 9,192 36/7,453
2
2,796
49
2,126
75
66 L
F o r fo o tn o te s ,
see
pp.
2 9 -5 0 .
Table 4* - Corporation income and declared value excess-profits tax returns with balance sheets, 1/ 1945, by total assets classes: Number of returns, assets and liabilities,
compiled receipts, compiled deductions, compiled net profit or net. loss, net income or deficit, net operating loss deduction, adjusted excess profitsnet income, income tax,
declared value excess-profits tax, excess profits tax, total tax, compiled net profit less total tax, and dividends paid by type of dividend
‘Total
1 Number of returns with balance sheets 58/
Assets:
Cash 59/
Notes and accounts receivable
Less: Reserve for bad debts
Inventories
Investments, ‘Government obligations 40/
Other investments
Gross capital assets 41/ (except land)
Less: Reserves
Land
Other assets
Total assets 42/
Liabilitiest
Accounts payable
15
Bonds, notes, mortgages payable:
14
Maturity less than 1 year
Maturity 1 year or more
15
16
Other liabilities
17
Capital stock, preferred
Capital stock, common
18
Surplus reserves
19
20
Surplus and undivided profits 45/
21
Less: Deficit 44/
Total liabilities 42/
22
Receiptst
Gross sales 16/
25
24
Gross receipts from operations 17/
Interest on Government obligations
(less amortizable bond premium).
Wholly taxable 18/
25
26
Subject to declared value excess—profits tax
and surtax 19/
27
Subject to surtax only 20/
28
Wholly tax-exempt 21/
Other interest
29
50
Rents 22/
51
Royalties 25/
52
Excess of net short-term capital gain over
net long-term oapital loss 24/
Excess of net long-term capital gain over
55
net short-term capital loss 24/
54
Net gain, sales other than capital assets 25/
Dividends, domestic corporations 26/
55
56
Dividends, foreign corporations 27/
Other receipts
37
Total compiled receipts 9/
58
Deductions:
59
Cost of goods sold 28/
Cost of operations 28/
40
41
Compensation of officers
42
Rent paid on business property
43
Repairs 29/
44
Bad debts
Interest paid
45
46
Taxes paid 50/
47
Contributions or gifts 51/
Depreciation
48
49
Depletion
50
Amortization 52/
Advertising
51
Amounts contributed under pension plan, etc*
52
Net loss, sales other than capital assets 25/
55
Other deductions
54
Total deductions
55
56 Compiled net profit or net loss (58 less 55)
57 Net income or deficit 2/ (56 less 28)
58 Net operating loss deduction 55/
59 Adjusted excess profits net income 10/
60 Income tax 3/
61 Declared value excess-profits tax
62 Excess profits tax 4/
Total tax
65
64 Compiled net profit less total tax (56 less 65)
Dividends paid:
Cash and assets other than own stock
65
66
Corporation's own stock
2
S
4
5
6
7
8
9
10
11
12
For footnotes, see pp, 29-30,
Under
50
50
under
100
100
under
250
Total assets classes
500
250
under
under
1.000
500
17,669
22,057
5.000
under
10.000
3,948
61,451
60,308
706,867
721,955
57,716,999
799,017
687,148
52,275,559
21,471
19,601
645,952
621,742
540,459
26,067,245
167,923
129,955,056
79,499
162,680
216,325
74,025,917
158,445,652 1,836,213 2,192,955
910,706
832,215
54,667,984
457,090
304,072
8,281,599
167,469
169,103
10,029,217
441,461,268 3,647,660 4,578,846
1,316,705
1,642,743
43,159
1,308,619
546,233
585,767
4,795,848
1,964,906
985,597
352,894
9,526,342
1,256,061 1,804,607 8,199,085 4,491,353
1,609,803 1,980,758 6,697,718 3,435,803
54,854
42,444
47,210
125,312
1,397,831 1,642,882 4,476,510 2,056,818
803,959 1,683,838 12,555,864 8,775,656
756,739 1,234,815 5,557,891 3,541,267
4,603,994 5,236,534 13,902,085 7,228,713
1,966,099 2,344,016 6,381,725 3,206,484
720,303
884,922
871,789 1,965,485
602,806
361,741
372,861 1,059,801
9,666,507 12,436,856 47,907,402 27,591,580
582,572
1,097,657
1,056,609
574,950
17,454,980
177,788
648,679
490,048
7,208,549
236,148
255,238
778,019 1,850,807
40,987,175
599,225
873,071
395,251
221,285,591
429,321
324,807
129,275
14,765,641
119,517
64,747,400 1,845,617 1,601,979 . 2,983,557
132,634
41,101
11,056,641
26,491
906,006 1,140,741 2,585,002
72,528,245
524,041
811,201
8,570,751 1,182,435
441,461,268 3,647,660 4,378,846 9,526,542
27,583
42/
1,000
under
5.000
1,069,587
2,614,521
1,031,942
10,000
under
50.000
3,197
50.000
under
100.000
427
100,000
and
over
542
1
9,723,828 3,959,563 25,536,996 2
7,643,578 3,149,262 24,627,709 3
32,290
137,014 4
120,578
4,591,402 1,754,866
7,676,113 5
20,064,045 8,367,725 76,890,293 6
10,079,168 4,768,707 47,122,560 7
19,7^7,404 10,495,979 68,443,907 8
8,962,958 3,760,575 24,338,298 9
332,925
672,178 10
1,107,239
798,120
4,642,700 11
1,501,722
65,334,850 29,834,282 231,137,144 12
2,530,997
916,051
5,926,606 IS
445,879
1,177,458 14
490,332
588,798 1,626,836
630,507 1,267,106
1,663,344 1,691,552 3,905,745 1,698,785 4,816,719 3,595,834 20,587,163 15
1,158,149 2,631,951 20,724,769 14,061,645 32,073,099 13,827,510 135,112,824 16
525,216 1,681,657
6,635,758 17
370,536
833,319 2,573,474 1,572,283
2,692,982 2,929,019 7,677,425 3,610,570 8,560,477 4,224,622 28,621,171 18
4,904,160 19
311,626 1,317,444
188,943
835,433 2,234,954 1,065,855
2,750,725 3,384,687 10,215,051 5,327,557 12,387,194 4,781,621 29,069,658 20
895,654 21
664,913
695,559 1,856,046
593,352
458,378 1,109,171
9,666,507 12,436,856 47,907,402 27,591,380 65,334,850 29,834,282 231,157,144 22
201,545,767 6,942,610 7,119,878 13,963,891 13,547,401 15,065,752 36,588,245 15,151,196 32,558,197 11,985,151
59,909,914 1,745,896 1,215,547 2,048,676 1,729,841 1,889,048 4,324,765 1,902,371 5,859,591 2,980,285
1,490,510
500,079
1,717
221
2,341
85
7,522
391
9,858
725
18,729
1,786
138,460
14,918
97,617
15,218
226,335
41,224
93,403
20,034
5,484
205,706
2,206,598
2,256,841
247,944
42,471
21
162
10,695
186,215
8,853
1,889
43
218
11,655
176,767
6,605
1,384
75
752
28,527
362,771
16,273
2.588
91
902
29,501
273,545
16,740
2,507
148
2,675
43,124
115,653
18,488
2,368
783
22,623
218,848
231,090
41,642
7,181
492
15,096
122,361
92,827
34,056
4,689
1,089
32,039
269,053
175,190
- 51,621
7,063
326
13,691
121,095
110,252
11,687
2,992
855,896
22,677
21,177
39,426
38,408
45,752
142,154
81,191
179,365
83,526
175,249
19,321
23,026
16,836
32,945
9,847
1,798
14,648
18,883
17,585
30,888
138,140
1,401,220
3,140
3,383
11,577
17,753
148,192
81,705
236,355
27
462
9,993
155,954
138
443
1,137
8,279
24,418
4,375
89,386
78,950
144,250
1,878,917
154,112
143,224
330,627
138,099
238,273
54,286
252,636,550 9,030,941 8,650,707 16,659,649 15,828,823 17,597,634 42,250,752 17,749,140 39,917,400 15,626,460
48,625,467 23
16,217,895 24
894,727 25
207,476 26
2,416
117,548
1,351,539
532,530
41,978
9,810
27
28
29
30
31
32
182,421 33
20,359
730,287
84,661
507,708
69,524,822
34
35
36
37
38
155,827,902 5,178,860 5,464,855 10,835,154 10,571,358 11,682,327 28,224,778 11,377,229 24,673,801 9,321,980 38,497,562 39
22,559,469
941,119
708,180 1,204,759 1,036,468 1,086,149 2,422,425
953,405 3,255,582 1,576,986
9,174,595 40
4,034,364
595,627
433,249
681,161
495,009
432,019
674,192
65,380
203,433 41
192,525
261,768
2,514,912
156,046
246,938
158,051
196,712
145,708
309,892
105,769
135,031
262,353
822,413 42
2,596,964
65,460
57,730
123,602
111,935 ~ 109,098
375,986
195,945
517,391
203,053
838,763 43
21,186
269,153
16,854
14,683
24,902
18,691
43,380
17,722
30,830
10,200
70,704 44
2,258,036 * 36,310
42,448
96,625
87,822
92,700
253,684
123,800
282,537
165,688
1,076,421 45
143,594
130,757
243,096
295,060
851,676
380,164
5,513,728
258,914
871,550
380,164
1,958,754 46
5,386
4,194
13,294
19,637
24,896
263,583
15,459
53,314
48,169
16,825
62,409 47
3,920,901
99,847
196,590
181,617
487,856
99j989
200,481
226,824
265,103
560,828
1,601,764 48
679,424
3,774
3,370
9,499
.13,728
20,369
62,730
37,598
118,892
377,299 49
32,165
1,931,462
1,361
1,528
6,890
12,752
25,735
108,784
76,597
254,197
146,951
1,296,687 50
50,296
99,797
102,569
1,906,618
47,085
131,100
371,244
201,288
344,652
120,650
437,937 51
763,652
1,247
2,140
7,647
14,815
26,345
79,815
46,225
121,314
55,302
408,801 52
415,040
28,874
24,047
12,843
26,445
19,551
69,527
24,009
63,101
21,944
124,698 53
26,161,442 1,349,066 1,111,554 2,051,453 1,833,781 1,879,250 4,411,463 2,020,569 4,350,524 1,616,544 v 5,537,238 54
231,416,649 8,765,158 8,274,111 15,821,777 14,914,358 16,201,219 38,800,749 16,029,827 36,017,288 14,104,684 62,489,478 55
376,597
21,219,681
267,733
837,872
914,465 1,196,416 3,450,003 1,719,313 3,900,112 1,521,776
7,035,344 56
267,621
376,379
21,013,975
837,120
913,563 1,193,741 3,427,380 1,704,217 3,868,073 1,508,085
6,917,796 57
11,546
109,185
21,220
15,990
10,551
10,520
19,044
9,766
3,086
947 58
6,514
8,245,384
15,022
60,767
268,201
628,330 1,810,840
852,662 1,808,821
416,503
580,053
1,804,184 59
4,159,898
91,582
184,472
95,519180,273
231,771
326,233
645,789
724,059
301,302
1,358,918 60
53,740
4,310
4,879
3,390
5,321
5,372
12,266
4,302
2,011
2,596 61
9,295
6,508,046
210,296
11,608
47,658
481,082 1,389,174
322,032
658,151 1,429,852
464,686
1,493,507 62
107,501
146,566
10,701,683
395,890
511,383
718,224 2,047,229
767,999
988,685 2,163,185
2,855,021 63
230,030
10,517,998
160,282
441,982
403,083
478,191 1,402,774
730,628 1,736,927
753,778
4,180,323 64
6,009,107
331.657
61,185
3.060
60,089
5.968
140,664
16.969
153,593
21.404
204,164
28.657
680,363
70.731
410,956
36.627
1,072,477
51.765
538,907
13.261
2,686,709 65
83.215 66
Table 5« — Corporation income,and declared value excess-profits tax returns, 1/ 1945, by net income-and deficit classes,
for returns with net income and returns with no net income: Number of returns, and net income or deficit; also, for
returns with net income: Total tax, income tax, declared value excess-profits tax, excess profits tax, and adjusted
excess profits net income
Net income and deficit
classes 2/
Under 1
1 under 2
2 under 3
3 under 4
4 under 5
5 under 10
10 under 15
15 under 20
20 under 25
25 under 50
50 under 100
100 under 250
250 under 500
500 under 1,000
1,000 under 5,000
5,000 under 10,000
10,000 and over
Total
No income data (inactive
corporations)
For footnotes, see pp» 29-30,
Number
of
returns
(Net income and deficit classes and money figures in thousands of dollars)
Returns with net income 2/
Adjusted
Taxes
excessDeclared
Net
income 2/
profits
Total
Income
value
excesstax
tax 3/
net
income 10/
profits
tax
Returns with no net
income 2/
Number
of
Deficit %/
returns
Excess
profits
tax 4/
59,737
30,532
21,542
16,893
14,346
48,479
26,983
15,597
10,429
23,090
14,432
11,011
4,571
2,535
2,278
296
268
24,628
44,742
53,316
58,813
64,457
354,661
330,635
269,914
233,398
810,206
1,013,553
1,725,564
1,597,154
1,756,507
4,608,699
2,046,643
7.172.315
1
6
16
32
27
428
4,827
18,044
26,930
177,905
350,751
736,413
751,849
814,093
2,129,043
850,332
2.448.044
5,181
9,984
12,305
13,781
15,280
87,551
86,391
78,348
74,067
325,716
504,344
931,417
885,148
956,868
2,507,930
1,048,894
3.251.431
5,025
9,657
11,868
13,267
14,721
84,321
80,321
62,524
51,668
180,990
224,155
353,475
504,365
326,706
844,730
567,311
1.247.487
155
322
426
487
535
2,903
2‘
,252
1,714
1,248
3,820
4,139
6,276
4,962
4,714
10,986
4,576
5.524
1
5
12
27
23
326
3,818
14,1Ì0
21,151
140,906
276,050
571,666
575,821
625,448
1,652,214
677,008
1.998.419
69,755
13,790
7,388
4,612
5,185
7,767
3,272
1,890
1,221
2,552
1,366
809
276
128
83
7
5
18,377
19,778
18,164
16,000
14,283
54,951
39,833
32,606
27,296
88,812
95,165
125,023
97,148
90,118
155,962
46,828
87.904
303.019
22.165.206
8.308.740
45/10.794.750
45/4.182.705
55.039
6.557.006
118.106
1.026.250
-
-
-
-
-
-
55.355
-
Footnotes for tables In this release
12/ The industrial classification designated "Holding companies" consists of
corporations which derived 90 percent or more of receipts from investments and which
at some time during the taxable year had investments in corporations In which they
owned 50 percent or more of the voting stock.
\J The information contained in this release is compiled from the
returns as filed, prior to revisions that may be made as a result of
audit by the Bureau of Internal Revenue. Data are likewise prior to any
changes resulting from oarry-backs, relief granted under section 722 of
the Internal Revenue Code, recomputation of amortization of emergency
facilities, or from the renegotiation of war contracts, after the returns
were filed. The effect of renegotiation settlements reached after the
returns were filed is to be shewn in special tabulations which will appear
in the complete reports, "Statistics of Income, Part 2," for each of the
years 1942 through 194S.
1 5 / The industrial classification designated "Operating-holding companies"
consists of corporations which derived less than 90 percent but more than 50 percent
of receipts from investments.
14/ Less than $500.
IS/ Number of returns shown excludes returns of inactive corporations.
2j "Net income" or "Deficit" for 1944 and 1945 is the amount re
ported for declared value exoese-profits tax computation, adjusted by
excluding net operating loss deduction and adding Government interest
subject to surtax only and excess of net long-term capital gain over
net short-term capital loss. See note 55.
16/ "Gross sales" consists of amounts received for goods, less returns and
allowances, in transactions where inventories are an income-determining factor.
For "Cost of goods sold," see "Deductions."
17/ "Gross receipts from operations" consists of amounts received from trans
actions in which inventories are not an income-determining factor. For "Cost of
operations," see"Deductions,"
5/ "Income tax" consists of normal tax, surtax, and alternative tax
reported in lieu of normal tax and surtax where the income includes an
excess of net long-tern capital gain over net short-term capital loss, if
and only if such tax is less than the normal tax and surtax. Tabulated with
the income tax for returns with net income is a small amount of tax reported
on returns with no net income, under the special provisions applicable to
certain mutual insurance companies, other than life or marine.
18/ "Interest received on Government obligations, wholly taxable" consists of
interest on Treasury notes issued on or after December 1, 1940, and obligations
Issued on or after March 1, 1941, by the United States or any agency or instrumen
tality thereof, reported as item 9(b), page 1, Form 1120.
4/ The excess profits tax shown is that imposed by section 710 of the
Internal Revenue Code as amended and should not be confused with the
declared, value excess-profits tax. For 1945 the mount shown is the excess
profits tax reported on corporation excess profits tax returns, less the
10 percent credit.
The allowance of the current credit of 10 percent against the excess
profits tax in lieu of the post-war refund and the credit for debt retire
ment was provided by the Tax Adjustment Act of 1945 for taxable years
beginning after December 31, 1943, but this change was not taken into
account in the 1944 data for the reason that a majority of the returns
for 1944 were filed previous to July 31, 1945, the date of the Tax
Adjustment Act of 1945, and accordingly show post-war refund and credit
for debt retirement. Thus, for 1944 the amount of excess profits tax
shown is the excess profits tax liability reported on corporation excess
profits tax returns, less the credit for debt retirement and the net
post-war refund. Throughout this release, the tax is before the amount
deferred under section 710(a) (5) (relating to abnormalities under
section 722) and after any adjustments reported on the returns under
other relief provisions.
5/ The excess profits net income is obtained from the normal-tax
net income (computed without allowance of credit for income subject to
excess profits tax and without allowance of dividends received credit)
by making certain adjustments, consisting principally of the exclusion
of long-term capital gains and losses, and dividends received from
domestic corporations.
6/ The adjusted excess profits net income, as reported on Fonn
1121, is the excess profits net income less the sum of the specific
exemption, excess profits credit, and unused excess profits credit ad
justment. For part year returns, the amounts of excess profits net
income and adjusted excess profits net income have been placed on an
annual basis.
The total amount of adjusted excess profits net income for 1944 does
not include a deficit of $6,579,233 reported on 2,556 taxable excess
profits tax returns with no adjusted excess profits net income.
7/ The industrial classification is based on the business activity
reported on the return. When multiple businesses are reported on a
return, the classification is determined by the business activity which
accounts for the largest percentage of total receipts. Therefore, the
industrial groups do not reflect pure industry classifications. There is
no change in the industrial groups between 1944 and 1945.
8/ Total number of returns includes returns of inactive corporations.
9/ "Total compiled receipts" consists of gross sales (less returns
and allowances), gross receipts from operations (where inventories are not
an income-determining factor), all interest received on Government
obligations (less amortizable bond premium), other interest, rents,
royalties, excess of net short-term capital gain over net long-term capital
loss, excess of net long-term capital gain over net short-term capital
loss, net gain from sale or exchange of property other than capital assets,
dividends, and other receipts required to be included in gross income.
"Total compiled receipts" excludes nontaxable income other than tax-exempt
interest received on certain Government obligations.
10/ "Adjusted excess profits net income," allowed as a credit on Form
1120 in computing normal tax and surtax net income, is, in general, equal
to the adjusted excess profits net income, as reported on Form 1121.
However, in case the excess profits tax is determined as provided in
section 721 of the Internal Revenue Code (relating to abnormalities in
income in the taxable period), section 726 (relating to corporations
completing contracts under the Merchant Marine Act of 1936), section 751
(relating to corporations engaged in mining strategic minerals), or
section 756(b) (relating to corporations with income from long-term
contracts), the credit reported on Form 1120 for adjusted excess profits
net income is the amount of which the excess profits tax is 95 percent.
For the purpose of computing such credit, the excess profits tax used is
the tax computed without regard to the limitation provided in section 710(a)
(1)(B) (the 80 percent limitation), without regard to the credit provided
in section 729(c) and (d) for foreign taxes paid, and without regard to the
adjustments provided in section 734 in case of position inconsistent with
prior income tax liability.
11/ The industrial classification designated "Investment trusts and
Investment companies" consists of corporations which derived 90 percent or
more of receipts frcm'investments and which at no time during the taxable
year had investments in corporations in which they owned 50 percent or
more of the voting stock.
19/ "Interest received on Government obligations, subject to declared value
excess-profits tax and surtax" consists of interest on United States savings bonds
and Treasury bands owned in principal amount of over $5,000 issued prior to
March 1, 1941, reported as item 9(a), page 1, Form 1120.
20/ "Interest received on Government obligations, subject to surtax only"
consists of interest on obligations of instrumentalities of the United States (other
than obligaticost of Federal land banks, joint stock land banks, and Federal inter
mediate credit banks) issued prior to March 1, 1941, reported as item 52, page 1,
Form 1120.
21/ "Interest received on Government obligations, wholly tax-exempt* consists
of interest on obligations of States, Territories, or political subdivisions thereof,
the District of Columbia, and United States possessions; obligations of the
United'States issued on or before September 1, 1917; all postal savings beads;
Treasury notes issued prior to December 1, 1940; Treasury bills issued prior to
March 1, 1941; United States savings bonds and Treasury bonds owned in principal
amount of $5,000 or less, issued prior to March 1, 1941; and obligations issued
prior to March 1, 1941, by Federal land banks, joint stock land banks, and Federal
intermediate credit banks. Interest from such sources is reported under item 15(a)
of schedule M, page 4, Form 1120.
I
22/ Amount shown as "Rents" consists of gross amounts received. The amounts
of depreciation, repairs, interest, taxes, and other expenses, which are deductible
from the gross amount received for rents, are included in the respective deduction
items.
23/ Amount shewn as "Royalties" consists of gross amounts received. The amount
of depletion, which is deductible from the gross amount of royalties received, is
included in the item of "Depletion" in deductions.
24/ Capital gain or loss is the amount of gain or loss arising from the sale
or exchange of capital assets. (A net loss from this source is not deductible for ,
the current year, but may be carried over and applied against capital gains in the
five succeeding taxable years to the extent not allowed as a deduction against any
net capital gains of any taxable year Intervening between the taxable years in which
the net capital loss was sustained and the taxable year to which carried.) The
excess of the net long-term capital gain over the net short-term capital loss is
excluded from net Income for the purpose of computing declared value excess-profits
tax. The term "Capital assets" means property held by the taxpayer (whether
or not connected with trade or business), but excludes (1) stook in trade or other
property which would properly be included in inventory if on hand at the close of
the taxable year, (2) property held primarily for sale to customers in .the ordinary
course of trade or business, (5) property used in trade or business, of è'character
which is subject to the allowance for depreciation, (4) Government obligations
issued on or after March 1, 1941, on a discount basis and' payable without interest
at a fixed maturity date not exceeding one year from the date of issue, and (5)
real property used in the trade or business of the taxpayer. Beginning 1942 gains
and losses from (a) sale or exchange of depreciable property and real property,
used in the trade or business and held for more than 6 months, and from (b) in
voluntary conversion of such property and of capital assets held for more than 6
months are treated as long-term capital gains and losses, if the gains exceed the
losses. If the losses exceed the gains, the net loss is deductible as an ordinary
loss. For taxable years beginning after December 31, 1941, "short-term" applies
to gains or losses on the sale or exchange of capital assets held six months or
less; "long-term" applies to gains or losses on capital assets held over six months.
25/ "Net gain or loss, sales other than capital assets" is the net amount of
gain or loss arising from the sale or exchange of depreciable and real property used
in trade or business and short-term noninterest-bearing Government obligations
issued on or after March 1, 1941, on a discount basis. If the property used in trade
or business has been held for more than 6 months, special treatment of the gain or
loss is provided as described in note 24 above..
26/ "Dividends, domestic corporations" consists of dividends received from
domestic corporations subject to income taxation under chapter 1 of the Internal
Revenue Code. This item is reported in column 2, schedule E, page 5, Form 1120,
and is the amount used for computation of the dividends received credit.
27/ "Dividends, foreign corporations" is the amount reported in column 5,
schedule E, page 3, Form 1120, and is not used for the computation of dividends
received credit,
28/ Where the amount reported as "Cost of goods sold" or "Cost of operations"
includes items of deductions such as depreciation, taxes, etc., these items
ordinarily are not transferred to their specific headings,"However, an exception
~ in made With respect to amounts reported in costs and identifiable as "Amortization
of emergency facilities" and "Amounts contributed under pension plan, etc.," such
amounts being transferred to their respective deduction items.
Footnote« for tablas In this release - Continued
29/ Amount shorn as "Repairs" is the cost of incidental repairs,
including labor and supplies, which do not add materially to the value of
the property or appreciably prolong its life»
85/ See note 84»
SO/ The itea "Taxes paid" excludes (1) Federal lncc■) tax and
Federal excess profits taxes, (2) estate, inheritance, legacy, succession,
and gift taxes, (5) income taxes paid to a foreign country or possession of
the United States if any portion is claimed as a tax credit, (4) taxes
assessed against local benefits, (5) Federal taxes paid on tax-free
covenant bonds, and (6) taxes rape'ted in "Cost of goods sold" and "Cost
of operations."
87/ Compiled net loss after total tax payment.
51/ The deduction claimed for "Contributions or gifts" la
limited to 5 percent of net incosw as computed without the benefit
of this deduction.
82/ Amount shown as "Amortisation" is the deduction provided by
section 124 of the internal Revenue Code as amended with respect to
the amortisation of the cost of emergency facilities necessary for
national defense. On September 29, 1945, the President proclaimed
the ending of the emergency period defined in section 124(e)(2). As
a result, taxpayers holding certified emergency facilities on whieh
the 60 month amortisation period had not expired could elect to termi
nate the amortisation period as of September 80, 1945, and recompute
the amortisation deduction for each tax year involved, on the' basis of
the actual number of months in the shortened period. Thus, the amorti
sation deductions reported on the 1945 returns are, in many Instances,
the increased amounts based on the shortened period, whereas the amounts
reported on returns for 1944 and earlier years are based on a 60 month
period and are subject to adjustment to give effect to the recomputation.
85/ The net operating loss deduction tabulated herein is the amount
originally reported, consisting only of the net operating loss carry-over
reduced by certain adjustments, and does not take into account whatever
revisions may subsequently be made as the result of any carry-back of net
operating loss from the two succeeding tax years. In general, the net
operating loss carry-over is the sun of the net operating losses, if any,
for the two preceding taxable years. If there is net income in the first
preceding taxable year, the net operating loss for the second preceding
taxable year is reduced to the extent such loss has been absorbed by such
net incoaw.
54/ Amount shown as "Compensation of offloors" excludes compensation
of officers of life insurance companies which file Form UROL. Data not
available.
86/ Compiled net loss or deficit.
58/ "Number of returns with balance sheets* excludes returns of inactive
corporations and returns of active corporations for which balance sheet data are
lacking.
89/ Amount shown as "Cash" includes bank deposits.
40/ Amount shown as "investments, Government obligations" consists of
obligations of the United States or agency or instrumentality thereof as well as
obligations of States, Territories, and political subdivisions thereof, the
District of Columbia, and United States possessions.
41/ Amount shown as "Capital assets" oonsists of (1) depreciable tangible
assets such as buildings, fixed mechanical equipment, manufacturing facilities,
transportation facilities, and furniture and fixtures, (2) depletable tangible
assets — natural resources, and (8) intangible assets such as patents, franchises,
fCrmulas, copyrights, leaseholds, goodwill, and trade-marks. (Amounts in tables
8 and 4 of this release exclude land.)
42/ Assets and liabilities are tabulated as of December 81, 1945, or close of
fLscaXyear nearest thereto. Total,assets classes are based on the net amount of
total assets after reserves for depreciation, depletion, amortisation, and bad
debts. Adjustments are made in tabulating the data as follows: (1) Reserves,
when shown under liabilities, are used to reduce corresponding asset accounts,
and "Total assets" and "Total liabilities" are decreased by the amount of such
reserves, and (2) a deficit in surplus, shown under assets, is transferred to
liabilities, and "Total assets" and "Total liabilities” are decreased by the
amount of the deficit.
45/ Amount shown as "Surplus and undivided profits" consists of paid-in
or capital surplus and earned surplus and undivided profits. See note 44.
44/ Amount shown as "Deficit" consists of negative amounts of earned surplus
and undivided profits.
45/ Included in the total, but not in the detail, under "Income tax" and
■lotaTtax," is $114,562 of tax reported on returns with no net income. See
note 5.
INTERNAL REVENUE COLLECTIONS, TEXAS DISTRICTS
FISCAL YEARS 19^8 and 19V? (PRELIMINARY)
1st District (Austin)
2nd D i s t r i c t (D a lla s)
$1 7 0 ,9 5 7 ,685 .1*6
125,382,894.90
1*5.074,790.56
$ 1 1 6 ,9 2 2 ,9 7 7 .5 2
1 0 8 ,8 2 7 ,2 2 2 . 31!
8 ,0 9 5 .7 5 5 . 2*1
$ 2 8 7 ,8 8 0 ,6 6 3 *oh
23^ ,71 0 ,1 1 7 *2 ^
5 3 ,1 7 0 ,5 4 5 .8 0
Increase
2^0,991*782*02
218,^99, 29S*15
22,492,483.87
2 3 9 ,7 9 9 ,2 0 2 .5 2
1 9 9 ,2 5 6 ,6 7 9 .3 7
- W 75I1 2 3 2 3 7 Î5
4 8 0 ,7 9 0 ,9 8 4 .5 4
4 1 7 ,7 5 5 ,9 7 7 .5 2
6 3 ,0 3 5 ,0 0 7 .0 2
Income tax withheld, 19^+8
«
«
»
19 U 7
Increase
153,805,948.68
I25.733.61i4.58
28,072,30^.10
1 3 2 ,1 4 3 ,3 7 4 .5 1
1 1 0 ,1 0 3 ,1 5 0 .5 5
2 2 ,0 4 5 ,2 2 3 .9 6
2 8 5 .9 5 4 ,3 2 3 .1 9
2 3 5 ,8 -3 6 ,7 9 5 .1 3
5 0 ,1 1 7 ,5 2 8 .0 6
3 8 ,5111,708.70
31,1*111,783.93
7,072, 924. 77
3 *1 .5 5 2 ,0 0 6 .2 7
2 8 ,3 1 8 ,0 5 7 .7 0
6 ,2 3 3 .9 4 8 .5 7
7 3 ,0 6 6 ,7 1 4 .9 7
5 9 ,7 5 9 ,8 4 1 .6 3
1 3 .3 0 6 ,8 7 3 .3 4
8 l.98O. 9 i3 .7 6
67,3.87,062.58
1^, 693 ,851 »IS
7 3 ,3 8 5 ,8 9 0 .2 2
7 0 ,2 3 0 ,4 0 2 .9 6
3 ,1 5 5 ,4 8 7 .2 6
1 5 5 ,3 6 6 ,8 0 3 .9 8
1 3 7 .6 1 7 .4 6 5 .5 4
1 7 ,8 4 9 ,3 3 8 0 W
686 ,251 ,038*62
568 ,9^ , 68^* 1^
1 1 7 ,306 ,35 ^.ks
5 9 6 ,8 0 8 ,4 5 1 .1 0
5 1 6 ,7 3 5 ,5 1 2 .9 2
8 0 ,0 7 2 ,9 3 8 *1 8
1 ,2 8 3 ,0 5 9 ,4 8 9 .7 2
1 ,0 8 5 ,6 8 0 ,1 9 7 .0 6
1 9 7 ,3 7 9 ,2 9 2 .6 6
Corporation taxes, 19^8
«
u
I9 U 7
Increase
Individual income taxes, 19^8
«
11
it
Employment taxes, 19^-8
tf
»1
19U 7
Increase
Other taxes, I9U 8
h
n
19^7
Increase
Total collections, 19^8
«
H
19^7
In
cre a se
Increase
19^7
S ta te T o ta l
TREASURY DEPARTMENT
Information Service
WASHINGTON, D .C .
Statement by Secretary Snyder for Press and Radio
Conference, Fort Worth Club, Fort Worth,
Texas, 11 A.M*, C*S*T*, July S, 1948.
Business activity and high employment in the Lone Star State were
reflected by an increase of approximately IS percent in Federal internal
revenue collections in Texas for the fiscal year 1948, just ended, over
those for the fiscal year 1947, Secretary of the Treasury John W* Snyder
said in Fort Worth today*
.For the nation as a whole, the increase was slightly more than
6 percent*
Texas collections from 1946 to 1947 (fiscal years) increased 1*1
percent*
The collections referred to include corporation taxes, individual
income taxes, withheld income taxes, employment taxes, and miscellaneous
levies such as the excise taxes on liquor, tobacco and other articles*
The 1948 corporation tax collections- for the State rose more than
22 percent over those for the previous year* Individual income tax
payments increased more than 15 percent, and withholdings of individual
income tax more than 21 percent*
The Texas collections for both the fiscal year 1948 and the fiscal
year 1947, divided between the State1s two collection districts and by
tax classifications, are shown on an attached page*
The Texas collections for both the fiscal year
and
the fiscal year 194-7* divided between the S t a t e ’s two
collection districts and by . tax classifications, are shown
%
on an attached page.
Statement by Secretary Snyder for Press and Radio
Conference,. Fort Worth Club, F0rt W 0rtli,
Texas, 11 A.M. C.S.T. July g, 19^3
Business activity and high-employment in the Lone Star
State were reflected by an increase of approximately IS
percent in Federal internal Revenue collections in Texas for
the fiscal year 19*4-3, just ended, over those for the fiscal
year 19*4-7> Secretary of the Treasury John W. Snyder said in
Fort Worth today.
For the nation as a whole, the increase was slightly
more than 6 percent.
Texas collections from 19*4-6 to 19*4-7 (fiscal years)
increased 1.1 percent.
The collections referred to include corporation taxes,
individual income taxes, withheld income taxes, employment
taxes, and miscellaneous levies such as the excise taxes on
liquor, tobacco and other articles.
The 19*4-3 corporation tax collections for the S£ate
rose more than 22 percent over those for the- previous year.
Individual income tax payments increased more than 15 percent,
and withholdings of individual income tax
more than 21 percent.
T R E A S U R Y
D E P A R T M E N T
Information Service
WASHINGTON, D .C .
No. S-783
Summary of attached address by Secretary Snyder.
For release 1:30 P.M., C.S.T., July 8, 1948.
“WOMEN IN GOVERNMENT"
Business and professional women are achieving positions and responsibilities
of ever-increasing importance because they have proven their ability to compete in
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pF^'The role ?ihich women play in the field of Government - or/\any field of
activity - should not be a matter for excessive praise any more than it should be
a matter for prejudice or concern. "I am personally convinced that the place of
attitude
American women eligible to vote^outnumber men by a million and a half. Their
potential power is tremendous. If they4are to make this
force active fo:
the welfare of all, there must, be a complete shift in thinking from the right of
franchise to the duty, of franchise.
■"In all of the various spheres of activity which this audience represents the sciences, the arts, business competition, the Government service - women play
a distinguished part."
In the Govemmoat service, women have won their way to high honors and
responsibilities. The Treasury is among the beneficiaries of this growing avail
ability of competent women in administrative and executive capacities.
From 1923, when 81,000 women had full-time employment in the Government, the
number grew until it exceeded 1,
The
percentage of women employed by
e
general average in the Federal G
This progress made by women
of our long, continuing struggle
a bright chapter in the advance
civilization.
phase
t is
TREASURY
D E P A R T M E N T
Informatiorv Service
WASHINGTON, D .C .
So. S-783
Summary of'attached address by Secretary Snyder.
For release 1:30 P.M*, C.S.T., July 8, 19¿8*
"WOMEN IN GOVERNMENT"
Business and professional women are achieving positions and responsibilities
of ever-increasing importance because they have proven their ability to compete in
all walks of life* and at the same time to maintain the high standards of the
American hornet They are "brilliantly and effectively contributing to national
progress*"
American women eligible to vote today outnumber men by a million and a half*
Their potential power is tremendous. If they are to make this force active for
the welfare of all, there must be a complete shift in thinking from the right of
franchise to the duty of franchise*
The
activity
a matter
women in
attitude
role which women play in the field of Government - or in any field of
- should not be a matter for excessive praise any more than it should be
for prejudice or concern* "I am personally convinced that the place of
Government and business has matured to the point where assuming either
would be somewhat presumptuous*"
"In all -of the various spheres of activity which this audience represents —
the sciences, the arts, business competition, the Government service — women play
a distinguished part."
In the Government service, women have won their v^sy to high honors and
responsibilities* The Treasury is among the beneficiaries of this growing avail
ability of competent women in administrative and executive capacitiesf
From 1923, when 81,000 women had full-time employment in the Government, the
number grew until it exceeded 1,000,000 at the time of Japan*s surrender* Today,
there are still approximately 4 00,000 women on the Federal payroll* The percent
age of women employed by the Treasury has constantly far exceeded the general
average in the Federal Government*
This progress made by women in business and government is an Important phase
of our long, continuing struggle for a greater measure of human freedom. It is
a bright chapter in the advance of the fundamental principles of our country’s
civilization*
TREASURY DEPARTMENT
:
,• Washington- • '•
The following address b y .Secretary. Snyder before
■the Biennial Convention of 'the -National' Federation
of Business ana Professional Women’s Clubs in the
Coliseum-ofvthe Will Rogers Memorial* Fort Worth,
Texas., dir» scheduled for deli very/at 1 l30 P» M »,
CuS
July 8., 19A8« and is for release at that
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Here in the United States, .business and professional Women are.'.’.achieving
positions ,and. responsibi litiés/ôf-.ever ine leasing importare e*iV Against ■the', //
fictions -ard. figments of prelùdioe,. you have proyen your ability, your stamina
and your, inspiration'to comp etefn-r. all. walks\ of life, -and.at, the •'same .
•time .
to maintain the high stand^-d^Wf «the dimeric an homev^'Tod^y, 'whether -in law* •
or economics, in administration or .politics,/ in public .or domestic :life/,.you
are brilliantly apd effectively contributing to nati ©nal ,pr'Ogr e§ s*
y-,.;,
It is, particularly /to/the women of government that I ’want bt this/limp
to pay tribute --7 "to those'?iomeh. who-h^e actively.participated in the
processes of democratic government and whose skill and perseverance have .
been, a .stimulating'influenc e in public life' at every, lovely •■w
e..1.
‘ Active panici-pàti on in .-governm ent, takes two distinct forms* First > .*-1
it c an mean: taking part in thè' functioning of government. In an-'indirect ’•. though.'imporiiant manner* -'This we straditioriaily call I’good 'cltiaenShip.*’* /' y ’
To us todays it; .seems a/littie-..incongruous that what. $e,h,ow- -dbhsideran«' ;:
•
inherent right-.pf altizenshJJ),‘— -'the right to vote
until fairly.- 1 /
reeently .denied to.wbüien0.' It was denied /to .them -until they darned It*."and :
earned it in. one of the most memorhble advancements of, our whole continuing\
fight for greater- individual and national freedom* When :the first Woman’s.- ,
Rights Convention met .at .Seneca Falls, New York, 'just, one hundred years
’
ago, it was resolved, along with other objectives, that the women of this
country should have, the elective franchise. It is especially interesting ’’
to note, however, that of the twelve resolutions adopted, the elective
franchise resolution was thé only one not unanimously approved.# . Those in
•
opposition feared that such a demand would defeat other purposes'deemed
more rational, and that inclusion of such a platform pledge would make the
whole movement appear ridiculous* In this climate of¡thought, it took.real
steadfastness of- purpose to gain the voting privilege for women* It is
a sad commentary, however, that twenty-eight years-after actual- achievement
of this goal, we find outselves peculiarly but nevertheless vitally concerned
with the necessity of impressing upon women as well as .men" their duty to;..vote* ''
*. % .-V
' , - Mi
S-783
-
2
-
There ■will be an opportunity in November for each of us to show just
how much we value and appreciate this obligation to vote« And surely,
a consideration of the nations throughout the world wherein the right to
vote is entirely denied or is meaningless in application, emphasizes our
own unfettered privilege and makes clear and binding our duty as citizens
to exercise that privilege#
Today we probably have a million and a half more women that men in
this country who are eligible to vote# Consequently, if they were to
vote in anything like a so?uid bloc on such issues as the making of the
peace, social legislation, and the war against inflation, their power
would-be tremendous# My point is, that if they are to activate this force
for the national welfare, the shift in thinking from the right of franchise
to the duty of franchise must be made complete and absolute#
Indirect participation in government includes knowledge and association
with a wide variety of community and national affairs# It includes, too,
participation in party politics where the issues are often sharply drawn,
necessitating the. thoughtful selection of candidates for public office# All
this is closely related to direct activity in government — and is actually
being a part' of public service#
I
do not believe that .the role which women play in the field of
government today — or, as far as that goes, in any field of activity —
should be a matter for excessive praise any more than it should be a matter
for prejudice or concern#!'I am personally convinced that women’s place in
government and in business has matured to the. point where assuming either
attitude would be somewhat presumptuous# I make this statement with apology,
not for the sentiment expressed, but because it should need no expression in
view of women’s contribution to the conduct of the business of this country#
The effectiveness of the tremendous strides which have been taken in our
western world to emancipate women, and to create greater opportunity for
their varied talents, is forcefully emphasized here, in this national
convention of business, and professional women* And in all of the various
spheres of activity which -this audience represents — the sciences, the
arts, the professions, Government service — women play a distinguished
part# It is true that it has not always been a conspicuous part, for much
of the burden of routine work, of mass production, rests on the •shoulders
of women* This type of work in itself is of primary necessity#
; The history of the Federal Government reveals that women were employed
in this routine work long before they were admitted to the .higher ranks# In
the Treasury, for example, factory—type jobs at the Philadelphia mint were
opened to women at an early date# Later women were employed for some types
of light shop work in the Bureau of Engraving and Printing# And, in the
case of Clerical work, the lower grade's such as copyist positions were,
opened to wonien about 1850# For many years women who received titles,
women who were placed in positions of responsibility, and women who,were
>
paid salaries at the higher levels were rare* It is rather ironic to note
that the early advocates of the employment of women by the Federal
Government subscribed to this principle only because women were obtainable
- 3 -
at lower- wages than men* ,3?hi-s -disciumihatldn: was 'evident not only.in-the
administrative practices* hut also in th.e earliest statutes whicJh recognized
women.as government workers-*-.. But, in .the final analysis, .availability at
lower wage scales .ultimately proved a teal:.benefit because, it gave women,
the opportunity; and, the challenge to. prove their worth. And;, the history, of
their substantial contributions has- and will preserve for them their place
in government*
Another -early fault of our American, thinking which- affected women
particularly, whs the eleemosynary and '.political view of public., employment *
/Top. often, .public employment went to those who; had a charitable or. political
claim, tp a public job, rather than to those 'who had' the abilityto: .do: the
job* Not only .did thi^ doubtful philosophy create the. politic al hack* ,with
consequent injury to the co,untry*. but it definitely limited- the employmentof women in government* In spite.of temporary setbacks caused by. periods '
in which-the political or charitable theory of public service accorded';V
women less, oppor tun ity ■t o i o rk>: women have always regained and. advanc ed their
occupational, positions* In 1899* the. pressure, to. provide jobs fon Spanish'
War veterans resulted in. .intensified- discrimination against women in public
service*. Officials used all sorts of excuses for not hiring women* In one
story*, spread by ne?/spapers throughout the country, officials were quoted
as saying, that women ;were pot adaptable and that they were “inclined to
insist on ha,ving all the privileges in the way of yactions and sick leave ><
to which they are. entitled#’1-.^This argument, though appearing rather silly
to us today* must,have had its- injurious effect*
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;Frpm-time;.to-r time, efforts.."were made in both private; business-and in
Government to prove that women were not as. efficient-,as men/. In; 1911 wide publicity was given'; to a-statement, attributed to the President of the X - >-//
Civil-:..Sqrvic e Coriimission, ,to-the effect that the: Government, would'no'longer ,
hire women stenographers because blondes were "tod frivolous"' ‘
and brunettes
"too chatty*."
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.But these ¡resistances were in themselves real evidence of the progress
being made by women in the business world* For not only were women
progressing in point of numbers in Government service, bat they were being
appointed to positions of ever greater responsibility and importance—
all
resulting from the. fact that they were demonstrating, day by day, their
adaptability and efficiency in carrying out the responsibilities assigned :
to-them*
-V f
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By the- time, in 1933* when a woman for the first'time became a Cabinet
©ember,, women had fully proven their competence to serve in the.'highest'
public administrative positions* The Treasury benefited by this growing
availability of competent women in administrative positions as early as
twenty-five-years ago,, when it advanced one of its employees, Miss Mary M*
0* Reilly, to the position of Assistant, Director of the Bureau of the Mint*
Today*, we are proud to. have as the first,woman ever to hold the,office of
Director of the Mint, -Mrs* Nellie Tayloe -Ross, who was appointed to the
position which she presently holds in April 1933« The advancement of
Mrs* Ross in public service has been symbolic of the achievements of women
■* 4 -
in public affairs* After years of service in her chosen political party,
she was elected Governor of Wyoming,» the first woman to be elected Governor .
of any State* To me, there is a logical thread of continuity running through
this record of achievement* Especially is it significant that Wyoming,
which as a territory in 1869 was the first to recognize woman suffrage,
should be the first State to elect a woman Governor* Mrs* Ross has done
more than her share to stress the capacity of women in Government*
In mentioning a few of the women who have given distinguished service
in my own Department, I must not omit those who have carried and are
carrying our Savings Bond program to the women of America*' The Director of
the Womenfs Section of the United States Savings Bonds Division, Mrs* Nancy C*i
Robinson of Jackson, Mississippi, is now ably continuing the work performed
with distinction during the war by such leaders as Dr«‘ Mabelle Blake,
Mrs. Genevieve Forbes Herrick, and Miss Harriet Elliott •' lour presiding
officer, Miss Sally. Butler, is a member of my Treasury Staff whose
accomplishment as Deputy Director of the U* SV Savings Bonds Division for
Indiana is outstanding* .Miss Mar guerite Rawalt, a member of your Executive
Board and legal advisor to your Federation,likewise^ plays a most important
part in Treasury activities in her capacity as Special Attorney with the
Bureau of Internal .Revenue*
■ •'
These are examples of but a single'Department* Within the last
sixteen years, particularly, there have been countless instances of women
being advanced to the highest professional, technological, judicial, and
adnD.nistra.tive fields of government* Women have assumed high diplomatic
posts as ministers to the governments of Denmark and Norway* A woman is now
a United States Representative on the United Nations General Assembly, and
Ghairman of the Human Rights Commission of the United Nations Economic and
Social Council* Women have been called to new responsibilities not only,
in key civilian capacities, but in the Armed forces, where they have, held .
high rank as officers in all the services* A woman became chairman of the
homen1s Advisory Committee of the War Manpower Commission, another was
chosen to the War Mobilization and Reconversion Advisory Board, and still
another to direet the Office of Price Administration's Consumer Division.
It was only a few years ago that Federal Judiciary appointments first .
went to women judges; one to the United States Customs Court of Appeals,
a second to the United States Circuit Court of Appeals, and a third to the
United States Tax Court* Women administer the Children’s and Women’s
Bureaus, and the Agriculture Department’s Human Nutrition and Home Economics
Bureau* Chairmanship of the United States Employees’ Compensation Commission
was assumed by a woman in 1943* Likewise, women have served on the
Social Security Board and the Civil Service Commission. A recent appointment
to another field was that of the first woman member of the Federal
Communications Commission*, Many scores of women have held, and now hold,
elective offices in the municipal and state governments, and today there
are seven women members of the Congress of the United States, the dean of
whom is Mary T* Norton of New Jersey* Jeannette Rankin was the first woman
elected to the Congress of the United States, and Hattie. ¥* Caraway --- the
first and, so far, the only woman elected to the Senate*
- 5 . By citing just a few of these outstanding examples, however, I do not
mean to imply that all the able women who are making a real contribution in
Government eventually reach positions of public notice* That is far from
the case» In the Governmoit, business and professional women are ably filling
many positions which do not receive general public recognition or acclaim*
We have women lawyers, women economists, and women administrators of out
standing ability, doing the workmanlike every day jobs that are necessary to
make a business as large as that of the United States Government operate
smoothly* And certainly of not the least importance, we have the unmeasured
contributing force of women serving in confidential and secretarial positions
to hundreds of officials*
Figures showing Federal employment for women separately have only been
maintained since 1923* From that time until the United States entered
World war II, the number of women employees in the Government had increased
from fifteen to twenty percent of the total* For the same period, the number
on Treasury rolls increased from thirty to thirty-five percent* During the
war, women replaced men to a considerable extent in Government, as elsewhere*
From early in 1944- to the surrender of Japan, more than one million women
were on the full-time Federal payroll, and at the end of that time, constituted
forty percent of the employees, as compared to the Treasury figure of over
fifty percent* The ending of the war of course resulted in a rapid decrease
in Federal employment, but in April, 1948, there were still more than 400,000
women on the^ Federal payroll. It is interesting to note that the Treasury
percentage figure still far exceeds the general average in the Federal
Government*
One further point I wish to bring out will probably be surprising to
most of you* Notwithstanding general opinion, there are relatively few jobs
in Washington, when measured against the total number of Federal employees,
which are subject to political changes* The great bulk of Governmoit employ
ment is controlled by Civil Service* Most people believe that Civil Service
supplies personnel largely to the jobs in the lower brackets* But the facts
are otherwise. In all Departments and branches, higher offices which were
formerly appointive have gone under Civil Service and are being filled by
career men and women* From its rolls, the Departments select and appoint
their research workers, scientists, librarians, and administrative staffs*
And, among these highly educated, experienced workers,« a good percentage are
women*
The progress made by women in business and in Government in this past
century is only one important phase among many in our long continuing struggle
for a greater measure of human freedom. And the status of women must be
regarded in each stage of this advancement as a part of the total social
movement of the time. It cannot be approached, therefore, as a movement
solely by women and for women* For it is just one chapter in the advance of the
fundamental principles cf our country’s civilization, the principles of freedom
enshrined in the Declaration of Independence*
Under our system, Government derives from the people — and this means
all the people, both women and men* This Government will not function properly
unless all the people participate in it. We must be an active, living part of
our Government* We must give a part of our time and effort to Government,
either directly or indirectly* For, as long as qualified persons, women or
men, devote their energies wholeheartedly to public service, we will steadily
progress through better Government to a greater and fuller freedom*
oOo
COMMITTEE TO DIRECT MANAGEMENT STUDIES OF THE BUREAU O F INTERNAL REVENUE
(___
Committee Members
Alternate Members
A.L.M. Wiggins, Under Secretary of the
Treasury, Chairman
John S. Graham, Executive Assistant to the Under Secretary
George Schoeneman, Commissioner of Internal
Revenue, Vice Chairman
Stewart Berkshire, Assistant Commissioner, Bureau of
Internal Revenue
T. C. Atkeson, Assistant to the Commissioner
of Internal Revenue, Executive Director
W. A. Gallahan, Senior Tax Advisor to the Commissioner
of Internal Revenue
Fred Martin, Assistant Commissioner of
Internal Revenue, Member
Aubrey Marrs, Head, Technical Staff, Bureau of Internal
Revenue
E. F. BarteIt, Fiscal Assistant Secretary
of the Treasury, Member
R. W. Maxwell, Commissioner, Bureau of Accounts
W. W. Parsons, Administrative Assistant to
the Secretary, Member
James H. Hard, Director of Personnel
John L. Pahs, Collector of Internal Revenue,
State of Florida, Member
A1 Chamberlin, Assistant Collector of Internal Revenue,
State of Maryland
B. W. Wilde, Agent in Charge, Dallas, Texas,
Member
Hoke Murray, Agent in Charge, Richmond, Virginia
C. B. Stauffacher, Asst. Director in Charge
of Administrative Management, Bureau of
the Budget, Member
W. E. Mattingly, Group Head, Estimates Division,
Bureau of the Budget
Richard W. Nelson, Office of the Assistant to the Commissioner of
Internal Revenue, Secretary of the Committee
Secretary Snyder today announced the creation
of a committee to direct management studies of the
Bureau of Internal Revenue with a view to improving
it« operating efficiency# The committee will
function under the chairmanship of Under Secretary
Wiggins* The vice chairman is Commissioner of
Internal Revenue George J* Schoeneman# A list of
the membership of the Committee Is attached*
The committee will coordinate and direct the
implementation of proposals contained in recent
reports on the Bureau by the Bureau and Treasury
Department staffs and feyvEhe Joint Committee oar
OsQ
Internal Revenue Taxation, wad other proposals
A
which will result from management studies within
the Bureau itself or which emanate from outside
specialists.
Secretary Snyder said it was the responsibility
of the committee to develop the best methods and use
the ablest men, both inside and outside the Treasury,
to accomplish its objectives* Private management
consultants my be employed*
».» a****-*«*
TREASURY DEPARTMENT
Information Service
WASHINGTON, D .C .
IMMEDIATE RELEASE
Friday, July 2, 19¿8
No. S-784
Secretary Snyder today announced the creation of a committee
to direct management studies of the Bureau of Internal Revenue with
a view to improving its operating efficiency# The committee will
function under the chairmanship of Under Secretary Wiggins# The
vice chairman is Commissioner of Internal Revenue George J#'Schoeneman.
A list of the membership of the Committee is attached#
The committee will coordinate and direct the implementation of
proposals contained in recent reports on the Bureau by the Bureau
and Treasury Department staffs and by a staff employed by the Joint
Committee on Internal Revenue Taxation, as well as other proposals
which will result from management studies within the Bureau itself
or which emanate from outside specialists#
Secretary Snyder said it was the responsibility of the committee
to develop the best methods and use the ablest men, both inside and
outside the Treasury, to accomplish its objectives# Private management
consultants may be employed#
Attachment
0O0
COMMITTEE TO DIRECT MANAGEMENT STUDIES'
OF THE BUREAU OF INTERNAL REVENUE
Alternate Members
Committee Members
A* L* M. Wiggins, Under Secretary
of the Treasury, Chairman
John Sr Graham,- Executive
Assistant to the Under Secretary
George Schoeneman, Commissioner of
Internal Revenue, Vice Chairman
Stewart Berkshire, Assistant
Commissioner,. Bureau of
Internal Revenue
T# C*. Atkeson,. Assistant to the
Commissioner of Internal Revenue,
Executive Director
W* A* Gallahan, Senior Tax Advisor
to the Commissioner of
Intern al -Revenue
Fred Martin,. Assistant Commissioner
of Internal Revenue,. Member
Aubrey Marrs,-Head, Technical
Staff,' Bur ean of Internal
Revenue
E* F* Barte'lt, Fiscal Assistant
Secretary of the Treasury, Member
R# #W #<Maxwe 11, =Commis sion er,
Bureau of Accounts
W#, W*, Parsons,. Administrative
Assistant to the Secretary, Member
James H « -Hard,
Director of Personnel
John L, Fahs, Collector of Internal
Revenue, State of Florida,
Member
Al Chamberlin,.Assistant Collector
of Internal Revenue
State o f Maryland
B. W* Wilde, Agent in Charge
Dallas, Texas
Member
Hoke Murray,. -Agent in Charge
Richmond, Virginia
C. B# Stauffacher, Assistant
Director in Charge of
Administ rat iv e Man a gernent, Bur e au
of the Budget, Member
Vi# E# Mattingly, Group Head,
Estimates Division
Bureau of the Budget
Richard W# .Nelson, Office of the
Assistant to the Commissioner
of Internal Revenue, Secretary
of the Committee
wsiMS&> mwim
to spafsr s
Saturday t July 3, 1948.
©xa Secretary of the treasury announced last evening that the tenders for
$1 »1 0 0 ,0 0 0 ,0 0 0 » or thereabouts, of 91-day treasury bills to be dated Ifely 8 sad to satura
October 7» 1948, which were offered June 89, 1948, were opened at the Federal Reserve
Banks on July 8*
the details of this issue are as followss
Total applied for - $1,808,889,000
Total accepted
- 1,101,888,000 (includes #30,633,000 entered on a noncompetitive basis and accepted in full at
the average price shown below)
Average price
- 99.748 Equivalent rate of discount approx* 0.997^ per annua
Benge of accepted competitive bidet
99*793 Equivalent rats of discount approx. 0.977$ per annus
99 *747
*
»
e
e
«
3»#001$ »
»
High
low
(47
percent of the amount bid for at the low pries was accepted)
Federal Reserve
District_______
Total
Applied for
Total
Accepted
Boston
Hew York
Philadelphia
Cleveland
I
#
R ic h m o n d
Atlanta
Chicago
St* Louis
Minneapolis
Kansas City
Pallas
Ban Francisco
TOTAL
48,780,000
1,339,891,000
15.723.000
19.888.000
8.090.000
5.030.000
75.951.000
1.613.000
8.675.000
19.070.000
3.505.000
78.165.000
*1,802,239,000
35,300,000
934,037,000
8.676.000
13.988.000
8.060.000
8.930.000
45.741.000
1.456.000
8.304.000
18.398.000
4.995.000
57.715.000
#1,101,588,000
TREASURY DEPARTMENT
Information Service
WASHINGTON, D. c.
RELEASE, MO M I N G NEWSPAPERS,
Saturday, July 3> 19A3»_____
-
S—735
The Secretary of the Treasury announced last evening, that the tenders for
41,100,000,000, or thereabouts, of 91-day Treasury bills to be dated July 8 and
to mature October 7, 1948, which were offered June 29, 1948, were opened at the
Federal Reserve Banks on July 2*
The details of this issue are as follows:
- , ,
41 802 2393 000
Total applied for
1,101,588,000 (includes 430,633,000 entered on a non
Total accepted
competitive basis and accepted in full
at the average price shown below)
99.748
Equivalent
rate of discount approx. 0*997%
Average price
per annum
Range of accepted competitive bids:
High
-
low
-
99.753 Equival ont rate of discount approx* 0.977% '
per annum
99.747 Equivalent rate of discount approx* 1 *001 %
per annum
(47 percent of the amount bid for at the low price was accepted)
Total
Accepted
Total
Applied for
Federal Reserve
District
4 42 ,7 2 0 ,0 0 0
1,539,891,000
15,725,000
19,282,000
2, 590,000
5,050 ,000
7 5 ,9 5 1 ,0 0 0
1,615,000
2,675,000
19,070,000
5 , 50 5,0 0 0
72,165,000
Boston
New York
Philadelphia
Cleveland
Ric hmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
TOTAL
41,802,239,000
4
3 5 ,3 0 0 ,0 0 0
934,037,000
8,-.676,000
1 3 ,9 8 2 ,0 0 0
' 2,060,000
2 ,9 3 0 ,0 0 0
45 ,7 4 1 ,0 0 0
1,456,000
2 ,30 4 ,0 0 0
12,392,000
4,995,000
3 7 ,7 1 5 ,0 0 0
4 1 ,1 0 1 ,588,000
M m
- 3-
oi taxation the amount of discount at which Treasury bills are originally sold
by the United States shall be considered to be interest.
Under Sections
bZ and
117 (a) (1) of the Internal Revenue Code, as amended by Section ll£ of tho Reve
nue Act of 19U1, 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 nis income tax return only the
difference between the price paid for such bills, whether on original issue or
on subsequent purchase, and the amount actually received either upon sale or
redemption at maturity during the taxable year for which the return is made, as
ordinary gain or loss.
Treasury Department Circular No. I4I 8 , as amended, and this notice, prescribe
the terms of the Treasury bills and govern the conditions of their issue.
of the circular may be obtained from ary Federal Reserve Bank or Branch.
Copies
-
2
-
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, non-competitive tenders for $200,000 or
less without stated price from ary one bidder will be accepted in full at the
average price (in three decimals) of accepted competitive bids.
Settlement for
accepted tenders in accordance with the bids must be made or completed at the
Federal Reserve Bank on
July.
15* 19U8
—
, in cash or other immediately avail-
able funds or in a like face amount of Treasury bills maturing
Cash and exchange tenders will receive equal treatment.
Jnly 1$. 19U8
Cash adjustments will be
made for differences between the par value of maturing bills accepted in exchange
and the issue price of the new bills.
The income derived from Treasury bills, wrhether 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 the Internal Revenue Code, or laws amendatory or supplemen
tary thereto.
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 ary State, or any of the
possessions of the United ‘States, or by any local taxing authority.
For purposes
BBEOBOEXX
'lllpl
m m
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Friday, July 9, 19^8._______ .
The Secretary of the Treasury, by this public notice, invites tenders for
$ 900j000,000
, or thereabouts, of
91 -day Treasury bills, for cash and
~~
\
~
r
in exchange for Treasury bills maturing July l£. 19ii8______, to be issued on
a discount basis under competitive and non-competitive bidding as hereinafter
provided.
The bills of this series will be dated
.
will mature
interest.
October
11, 19U3
— ..gg.
July l£, 19U8
, and
- T ----------------------------------------------------------------------------
, when the face amount will be payable without
They will be issued in bearer form only, and in denominations of
$ 1 ,000 , $£, 000 , $ 1 0 ,000 , $ 1 0 0 ,0 0 0 , $£0 0 ,00 0 , and $ 1 ,00 0 ,0 0 0 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the
daylight saving
*
^
closing hour, two o ’clock p.m., Eastern/5teHsto± time, Monday, July 12, 1918
Tenders will not be received at the Treasury Department, Washington.
Each
tender must be for an even multiple of $ 1 ,000 , and in the case of competitive
tenders the price offered must be expressed on the basis of 1 0 0 , 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
TREASURY DEPARTMENT
Information Service
•RELEASE MO M I N G NEWSPAPERS,
Friday, July 9» 19¿8 .
:
Wa s h in g t o n , d .c .
No* S-786
The Secretary of the Treasury, by this, public notice, invites tenders for
^900,000,000, or thereabouts, of 91 -day Treasury bills, for cash and in exchange
for Treasury bills maturing July 15, 194-8, to be issued on a discount basis under
competitive and non-competitive bidding as hereinafter provided« The bills of
this series will be dated July 15, 1948, and will mature October 14* 1948, 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 , $10 0 ,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 daylight saving time, Monday, July 12,
1948* Tenders will not be received at the Treasury Department, Washington*.
Each tender must be for an even multiple of $1 ,000 , and in the case of competitive
tenders the price offered must beiexpressed on the basis of 1 0 0 , 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 reject
any or all tenders, in whole or in part, and his action in any such respect shall
be final* Subject to these reservations, non-competitive tenders for 4*20 0 ,0 0 0 or
less without stated price from any one bidder will be accepted in full at the
average price (in three decimals) of accepted competitive bids# Settlement for
accepted tenders in accordance with the bids must be made or completed at the
Federal Reserve Bank on July 15, 1948, in cash or other immediately available
funds or in a like face amount of Treasury bills maturing .July 15*,
•••
1948# Cash and exchange tenders will receive equal treatment# Cash adjustments
will be made for differences between the par value of maturing bills accepted
in exchange and the issue price of the new bills#
-
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 sucjpt,
and loss from the sale or other disposition of Treasury bills shall not have
any special treatment, as such, under the Internal Revenue Code, or laws
amendatory or supplementary thereto. 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 whiph 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 194.1,
the amount of discount at which bills issued hereunder are sold shall mo t 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 Cother than life Insurance companies)
issued hereunder need include in his income tax return only the difference
between the price paid for sueh bills, whether on original issue or on
subsequent purchase, .and the amount actually received either upon sale or
redemption at maturity during the taxable year for which the return is made, as
ordinary gain or loss*
Treasury Department Circular No* 418 , as amended, and this notice, 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
■fff
■
'
R2LE&SI, n » K
mmsksms,
■
Tuesday, July 13, 1948*
The Secretary of the Treasury announced last evening that the tenders fer
$900,000,000, or thereabouts, of 91-day Treasury hills to he dated July 19 and to «stur«
October 14, 1948, which were offered July 9, 1948, were opened at the Federal Reserve
Banks on July 12.
The detalle of this issue ere as fellowss
fetal applied for - #1,655,491,000 /
Total accepted
905,908,0007 {includes #60,558,000 entered on a non
competitive basis and accepted in full at
the average price ahown below}
Average prie#
— 99*748 Equivalent rate of diecount approx* 0.997$ per annum
lange of accepted competitive bidet
- 99*753
99*747
High
-
Low
Equivalent
*
rate of discount approx* 0*977$ per annum
*
*
*
«
1*001$
*
(99 percent of the amount bid for at the low price was accspted)
Federal Reserve
Dietriet
Total
Applied for ,
Total
Accepted
Boston
lew Tork
Philadelphia
Cleveland
Richmond
Atlanta
#
20,567,000
1,375,673,000
81,855,000
17,955,000
6,534,000
9,796,000
74,667,000
3,190,000
6,830,000
37,878,000
8,155,000
74.691.000
# 15,798,000
789,900,000
18,684,000
11,835,000
5,114,000
6,744,000
45,714,000
8,946,000
9,773,000
87,091,000
7,838,000
34,941*000
11,655,491,000
#905,908,000
m* Louis
Minneapolis
Kansas City
Dallas
Ban Francisco
TQTU.
*
TREASURY DEPARTMENT
Information Service
WASHINGTON, D .C .
RELEASE, H O M I N G NEWSPAPERS,
Tuesday» July 13, 19¿8._____.
No. S-787
The Secretary of the Treasury announced last evening that the tenders for
$900 ,000,000, or thereabouts, of 91-day Treasury bills to be dated July 15 and to
mature October 14, 1948, which were offered July 9* 1948, were opened at the
Federal Reserve Banks on July 12.
The details of this issue are as follows:
Total applied for - $>1,655*491*000
r
Total accepted
—
905*908,000 (includes $50,358, 000 entered on a non
competitive basis and accepted in full at
the average price shown below)
Average price
- 99*748 Equivalent rate of discount approx. 0.997$ p a 1annum
Range of accepted competitive bids:
High
Low
«
99*753 Equivalent rate of discount approx. 0.977$ per amum
99.747
f*
»
»
n
11
»»
«
(39 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
TOTAL
Total
Accepted
$
20,367,000
1,375,673,000
2 1 ,255*000
17,955,000
6,334* 000
9*796,000
74*667,000
3,190,000
6 ,2 3 0 ,0 0 0
37,278,000
8,155,000
74.591.000
$ 15*792,000
729,500,000
12,624,000
11,835,000
5,114*000
6,746,000
45,714*000
2 ,946*000
5,773*000
27*091,000
7,832,000
3A.9A1.000
. $1,655*491,000
$905,908,000
0O0
TREASURY
D E P A R T M E N T
Information Service
WASHINGTON, D .C .
TC - 10
Wednesday, J u l y 7 , 19^8
THE
T R E A S U R Y
OFFICE OF THE SECRETARY
Thursday« July 3. 11 to 11:30 A.M.. CST.
Secretary Snyderfs press conference in
the twelfth floor reception room of the
Fort Worth Club, Fort Worth, Texas. Press
and radio representatives of Fort Worth,
Dallas and adjacent territory are invited
to attend.
C A L E N D A R
Tuesday, July 27. 8 P.M. Secretary
Snyder will be honor guest at a dinner
meeting of the General Electric Company’s
Annual Business Conference, Association
Island, Lake Ontario.
Tuesday, August 3« Secretary Snyder will
address the American Legion Boys’ Forum
of National Government at American Uni
versity, ?iashington, D. C*
Thursday. July 8. 1:30 P.M.. CST» Secre
Wednesday. September 22* The Secretary
tary delivers address at the Coliseum in
the Will Rogers Memorial, Fort Worth, be will deliver a speech before the annual
meeting of the National Association of
fore the Biennial Convention of the Na
tional Federation of Business and Profes Supervisors of State Banks, Louisville,
Kentucky,
sional Women’s Clubs. Subject: ’’Women
ip Government.”
Thursday. July 8. 3 to 3:30 P.M.. CST.
Secretary Snyder will call on Mayor F.
Edgar Deeh in his offices at the Fort
Worth Municipal Building.
Thursday.
Secretary
reception
Carter of
Club,
July 8. 6:30 P.flU CST. The
will be the honored guest at a
and dinner given by Mr. Amon
Fort Worth, at the Fort Worth
OFFICE OF THE UNDER SECRETARY
Thursday, July 15. 1 P.M, Under Secretary
Wiggins will deliver a speech before the
Durham Kiwanis Club, Durham, North Car
olina.
Thursday. July 1$. 8 P.M. Mr.' Wiggins
will address the Carolinas Bankers Con
ference at Chapel Hill, North Carolina.
Saturday. July 17. The Secretary will
attend the joint annual meeting of the
COMPTROLLER OF THE CURRENGY
Boards of Directors of the Kansas City
and Denver Branches of the Federal Reserve Monday and Tuesday. July 12 and 13. T. V,
Bank, to be held at Denver, Colorado,
Roberts, Assistant Counsel, Office of the
f 2 -
COMPTROLLER OF THE CURRENCY
(Continued)
Comptroller of the Currency, will partic»
ipate in a panel discussion at the Caro*
linas Bankers Conference, Chapel Hill,
North Carolina. Subject: "Banking Laws
and Regulations.w
UNITED STATES COAST GUARD
July 6 to 26.
Lt. Commander J. D.
McCubbin, USCG, of the Search and Rescue
Agency, will attend the North Pacific Re
gional Air Navigation Meeting of the In
ternational Civil Aviation Organization
at Seattle, Washington. Commander
McCubbin is the U. S. spokesman for
Search and Rescue, and will be temporary
chairman of the meeting as the United
States is the host government. Commander
David 0. Reed, USCG, is his alternate.
Eleven member governments and one non
member government are participating,
Thursday. July S. Admiral Joseph F.
Farley, Commandant, USCG, will attend a
meeting of the American Bureau of Ship
ping, New York City.
OFFICE OF Tig GENERAL COUNSEL
Monday. September 6. Thomas J. Lynch,
General Counsel, will speak before the
Real Property, Probate and Trust Law Sec'
tion of the American Bar Association, at
the Association’s annual convention in
Seattle, Washington.
DIVISION OF SAVINGS BONDS
Friday. July 9. Leon J. Markham, Na
tional Director of Sales, will attend a
regional meeting of Payroll Savings Di
rectors in the middle Atlantic area, in
New York City. The object of the meet
ing is to outline plans for continuing
payroll savings activities in the autumn
of 1948.
Vernon L. Clarke, National Director, is
in Des Moines, Iowa, making a survey of
savings bonds activities in the middle
west.
RESIGNATIONS
Melville E, Locker, of the General Coun
sel’s office, has resigned to accept a
position as Assistant to the Comptroller
of E.C.A. Mr. Locker enters upon his new
duties July S.
RELEASES
The tax study, "Federal Excise Taxes on
Alcoholic Beverages", for release in
morningnewspapers Friday, July 16, will
be available in Room 4408, on Tuesday,
July 13.
Secretary Snyder’s Fort Worth speech,
"Women in Government" is available in
Room 4408.
TREASURY EXHIBIT ROOMS
Fourteen hundred and eighty persons vis
ited the Treasury exhibit rooms on Wed
nesday, July 7. These rooms, which con
tain many valuable historical documents,
and interesting displays from the various
bureaus of the Department, are open from
9 A.M. to 3 P.M., Mondays through Fri
days.
NOTE: Items for the Treasury Calendar may be phoned to the Information Service
over extensions 2041, 2042, 2043» Internal Revenue extensions 650, 651> Coast
Guard. Treasury extension 2993«
s
Secretary Snyder today issued the following statement:
I have received pressKinquirigs»<as to Governor
W a rren1s telegram to me yesterday concerning difficulties
encountered by the University of California in importing
cancer research equipment.
The Smoot-Hawley Tariff Act prohibits the importation,
of such equipment by the University of California without
specific markings as to the country of origin. Under that
law no discretion was left to the Secretary of the Treasury
or the Commissioner of Customs to allow entry of the
equipment without proper markings.
However,
so
in attempting to work out the situation
that the equipment may become available for public use,
I nave
the Public Health Service to take over
its importation. The statutory Eisrking requirement
of the Tariff Act which has been the source of difficulty
to the University of California will not apply to the
importation of this equipment if made by an agency of the
United States Government.
I understand it will be the purpose of the Public
H ealth Service to make the equipment
available to the
University of California.
The telegram'
from Governor Warren to which the
'A
Secretary!s statement refers was as follows:
—■
IMMEDIATE RELEASE,
Tuesday, July 13, 1948«
No. 5-788
Secretary Snyder today issued the following statements
I haVe received press inquiries as to Governor barren’s
telegram to me yesterday concerning difficulties encountered
by the University of California in importing cancer research
equipment•
The Smoot-Hawley Tariff ^ct prohibits the importation of
such equipment by the University of California without specific
markings as to the country of origin. Under that law no dis
cretion was left to the Secretary of the Treasury or the
Commissioner of Customs to allow entry of the equipment without
proper markings.
However, in attempting to v/ork out the situation so that
the equipment may become available for public use, I have
requested the Public Health Service to take over its importation.
The statutory marking requirement of the Tariff Act which has
been the source of difficulty to the University of California
will not apply to the importation of this equipment if made by
an agency of the United States Government.
I understand it will be the purpose of the Public Health
Service to make the equipment available to the University of
California.
The telegram to Secretary Snyder from Governor Warren to which the
Secretary’s statement refers was as follows:
Urgently needed scientific equipment is being held in
United States Customs House San Francisco due to technical
non-compliance under section 11.11B, Customs. Regulations of
1943* Scientific instruments classified under paragraph 360
Tariff Act. Further delay in delivery is seriously retarding
endocrme and cancer research under three different divisions
of the University of California. Large sums of money have
been furnished for this research by United States Public Health
Service, American Cancer Society and the State of California.
This is not an ordinary commercial transaction since the equip
ment is to be used in nonprofit medical research of tremendous
importance. The instruments were made to order for this purpose
by the Reichert Optical Works in Vienna, Austria. Commissioner
of Customs in Washington has properly ruled under regulations
-
2
-
that equipment is subject to exportation or destruction#
In view of the Circumstances, however, am calling this
situation to your attention in the hope that some way can
be found to expedite the delivery of this equipment for
its urgently needed use*
Earl Warren, Governor of California,
0O0
TREASURY
D E P A R T M E N T
Information Service
WASHINGTON,
TC - 11
Wednesday, July 14, 19^8
T H E
T R E A S U R Y
OFFICE OF THE SECRETARY
Saturday. July 17. Secretary Snyder will
attend the joint annual meeting of the
Boards of Directors of the Kansas City
and Denver Branches of the Federal Re
serve Bank, to be held at Denver, Colo.
Wednesday. August 4. Secretary Snyder
will address the American Legion Boys1
Forum of National Government at American
University, Washington, D. C.
Wednesday. September 22. The Secretary
will deliver a speech before the annual
meeting of the National Association of
Supervisors of State Banks, Louisville,
Kentucky.
OFFICE OF THE UNDER SECRETARY
Tuesday. July 27. 8 P.M. Under Secretary
Wiggins will be honor guest at a dinner
meeting of the General Electric Company's
Xnnual Business Conference, Association
Island, Lake Ontario.
C A L E N D A R
Tuesday. September 28. Mr, Lynch will
speak before a banquet meeting of the
Tax Executives Institute, Mount Washing
ton Hotel, Bretton Woods, New Hampshire.
OFFICE OF DIRECTOR OF PERSONNEL
Friday, July 23. 10 A.M. James H. Hard,
Director of Personnel, will hold a meet
ing of the personnel officers of the
various bureaus of the Treasury to dis
cuss personnel problems in the Depart
ment, in Room 4426.
OFFICE OF TAX LEGISLATIVE COUNSEL
Thursday. July 29« Vance N. Kirby, Tax
Legislative Counsel, will lecture before
the Third Institute for the Society of
Chartered Life Underwriters, to be held
at the University of Connecticut at
Storrs. Subject: "Income and Estate
Taxes Affecting Life Insurance."
BUREAU OF INTERNAL REVENUE
OFFICE OF TEE GENERAL COUNSEL
Monday. September 6. Thomas J. Lynch,
General Counsel, will speak before the
Real Property, Probate and Trust Law Sec
tion of the American Bar Association, at
the Association's annual convention in
Seattle, Washington.
Thursday. August 19. 12:30 P.M. George J.
Schoeneman, Commissioner of Internal Rev
enue, will be guest speaker at a luncheon
meeting of the National Society of Pub
lic Accountants, Hotel Copley Plaza,
Boston, Massachusetts,
-
2
-
BUREAU CF INTERNAL REVENUE
(Continued)
Bureau’s new responsibilities in the Sur
plus Property Disposal and Typewriter
programs* They are Fred Young, D. J.
Charles Oliphant, Chief Counsel of the
Ariagno, Alden W. Pool and W. B. IhlanBureau; Owen Swicker, of the Chief Coun feldt, Managers of the New York, Kansas
sel’s staff; and Aubrey Marrs, Chief of jCity, Denver and Seattle Supply Centers
the Bureau’s Technical Staff, are attend respectively.
ing a calendar session of the United
States Tax Court in Honolulu, T. Ho,
Judge Murdock presiding. They were ac
DIVISION OF SAVINGS BONDS
companied to Hawaii by members of the
legal and technical staffs of the Pacific Thursday. July 15. .Leon J. Markham, Na
Division, and are expected to return to
tional Director of Sales, will attend a
the mainland late next week.
luncheon meeting of the Board of Direct
ors of the Advertising Council, WaldorfAstoria Hotel, New York City,
BUREAU OF NARCOTICS
Commissioner of Narcotics, leaves on an
inspection trip to the West Coast, stop
ping enroute at Chicago, Los Angeles,
Benson E. L, Timmons, Assistant to the
San Francisco, Portland, Seattle and
Assistant Secretary, resigned July 13 to
Indianapolis%
accept a reserve appointment in the State
Department Foreign Service. He will be
assigned to the ECA, and will act as as
BUREAU OF CUSTOMS
sistant to David Bruce, head of the ECA
mission at Paris, France.
Friday. July 16. Edson J. Shamhart, Dep
uty Commissioner of Customs, who has been; Paul King. Deputy Director, Administration
on the Mexican border handling the: reor Branch, Bureau of Federal Supply, has been
ganization of the Customs Agency Service detailed to direct the operation of the
in that area, will return to Washington. Surplus Property Program. A. J. Doyle
will be the Acting Deputy Director of the
Administration Branch.
UNITED STATES COAST GUARD
Jay L. Chambers,has been designated Act
Captain A. C. Richmond, Chief of the
ing Assistant Director, Administration,
Planning and Control Staff of the United Bureau of Federal Supply, in the absence
States Coast Guard; Willard E. Johnson,
of H. M. Kurth.
Budget Officer of the Treasury Depart
ment; and Harold E. Merrick, of the Sen
ate Appropriations Committee staff, leave
Friday, July 16, for Alaska. The trip,
to be made by plane, is in connection
with a Survey relative to the reestab
MEETING OF TREASURY BOND REPRESENTATIVES
lishment of a Coast Guard district in
Alaska,
A meeting of all Treasury Bond represen
tatives will be held Friday morning,
July 16, at 9 0 0 in the Conference Room
BUREAU OF FEDERAL SUPPLY
44-26, to discuss plans and exchange ideas
in connection with the Security Bond Drive
Four of the^Bureau’s Supply Center Man
and the revitalized payroll savings plan
agers have arrived for conferences on the in the Department.
FOR'IMMEDIATE RELEASE,
July 1 % 19ii8_________
l$k‘•'
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
<5f May 28, 1941, as modified by the President's proclamations of April 13, 1942,
and April 29, 1943, for the 12 months commencing May 29, 1948, as follows:
V,':v ■
Wheat flour, semolina,
crushed or cracked
wheat, and similar
wheat nroducts
:
Imports
Established t
Imports
:May 29, 1948, to Quota
: May 29, 1948,
• to July 3* 1S*w
%Jolv 3 f 19li8
(Bushels)
(Pounds)
(Pounds)
Wheat
Country
of
Origin
Established
Quota
(Bushels)
Canada
795,000
China
—
Hungary
Hong Kong
—
Japan
/Jnited Kingdom
100
Australia
Germany
100
Syria
100
lew Zealand
Jhile
-lether lands
100
irgentina
> 2,000
Italy
100
Juba
•'ranee
1,000
- .
Greece
■exico
100
‘.onama
’ruguay
—
—
^oland and Danzig
—
Sweden
Tugoslavia
—
—
'orway
_
Janary Islands
lumania
1,000
Juat emala
100
Brazil
100
Jnion of Soviet
Socialist Republics
100
Belgium
100
800,000 '
8
'—
-
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
:
57,8®
160
—
—
—
—
—
-—
—
-
-
_
-
—
-■
-
—
■—
—,
—1
—
—
—
<■*
—
—
—
'—
—
—
—
—~
~
—
—
—
•HP
8
**o0o-
4,000,000
3 5 7 O3 5
TREASURY DEPARTMENT
Washington
DflVlEDIATE RELEASE,
Thursday, July 15, 1948
No. S-789
pie 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 Presidents proclamation
of May 28, 1941* as modified by the President’s proclamations of April 13, 1942,
and April 29 , 1943* for the 12 months commencing May 29, 1948, as follows;
Wheat
Country
of
Origin
Canada
China
Hungary
Hong Kong
Japan
United Kingdom
Australia
Germary
Syria
New Zealand
Chile
Netherlands
Argentina
Italy
Cuba
France
Greece
Mexico
Panama
'Uruguay
Poland and Danzig
Sweden
Yugoslavia
Norway
Canary Islands
Romania
Guatemala
Brazil
Union of Soviet
Socialist Republics
Belgium
:
Imports
Established;May 29, 1948, to
. Quota
; July 3, 1948
795,000
8
Wheat flour, semolina,
crushed or cracked
wheat, and similar
wheat products
;
Imports
Established:May 29, 1948, to
Quota
; July 3, 19 48
3,815,000
57,855
24.000
16Ó
13.000
13.000
8,000
100
75.000
1,000
100
100
5,000
5,000
1, 000
_
-
1,000
1,000
-
1 4 , 0 0 0
-
100
2,000
100
y
2,000
—
12.000
1, 000
1,000
1,000
100
1,000
1, 000
1,000
mm
-
1, 0 0 0
-
1,000
1,000
mm
1,000
1,000
1,000
100
100
100
IQO
—
„
_
^
800,000
8
4 70 0 0 ,0 0 0
-oOo-
58,015
7f^
FOR IMMEDIATE RELEASE
July 1 3 , 19U 8___________
The Bureau of Customs announced today preliminary figures showing
the imports for consumption of commodities on which quotas were
prescribed by the Philippine Trade Act of 1 9 U 6 , from January 1 , 1 9 U 8 ,
to July 3 , 1 9 k 8 , inclusive, as follows:
P ro d u c ts o f
:
P h ilip p in e Is la n d s :
U n it o f :
E s t a b lis h e d Q u o ta :
Q u a n tity
: Q u a n tity :
8 5 0 ,0 0 0
* i ■
B u tto n s
Im p o rts as o f
J u l y 3 , 19U 8
G ro s s
11+3,052
6 7 8 ,5 6 5
C ig a r s
2 0 0 ,0 0 0 ,0 0 0
N um be r
C oconut O il
U * 8 ,0 0 0 ,0 0 0
Pound
1+3,062,1+25
C o rd a g e
6 ,0 0 0 ,0 0 0
it
1 ,1 * 0 8 ,0 0 8
R ic e
1 ,0 1 * 0 ,0 0 0
it
-
Sugars, refined )
unrefined)
Tooacco
,
l 90 i*,000 ,0 0 0
2 ,21*0 ,0 0 0
1 9 9 ^ 0 2 ,2 5 3
6,500,000
203,278
|
TREASURY DEPARTMENT
Washington
IMMEDIATE RELEASE,
Thursday« July 15« 19AS«
No« S-790
The Bureau of Customs announced today preliminary figures showing the
imports for consumption of commodities on which quotas were prescribed by
the Philippine Trade Act of 194-6, from January 1, 1948, to July 3, 194-8,
inclusive, as follows:
Products of
Philippine Islands
Buttons
Established Quota
Quantity
850,000
Unit of
Quantity
:
:
*
•
Imports as of
July 3, 1948
Gross
1 4 3 ,0 5 2
678,5 6 5
Cigars
200,000,000
Number
Coconut Oil
448,000,000
Pound
43,062,4 2 5
Cordage
6,000,000
it
1,408,008
Rice
1 ,040,000
ti
-
1,904,000,000
it
it
2 ,240 ,0 0 0
199,482,253
6,500,000
it
203,278
Sugars, refined )
unrefined)
Tobacco
COTTON WASTES
(In pounds)
COTTON CARD STRIPS made from cotton 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* Provided, however, that
not more than 33-1/3 percent of the o.uotas 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*
•
• Established 1 Total imports
Established!
Imports
Country of Origin : TOTAL QUOTA
Sept. 20, 1947,j 33-1/3$ of|Sept. 20, 1947,
( toJuly 3, 19 UÔ Total Quota*to July 3 . 19QJ/ 1
United Kingdom.'....
Canada.......... ..
France............
British India......
Netherlands.......
Switzerland.......
Belgium............
J apan.............
China.............
Egypt.............
Cuba..............
Germany...........
Italy.............
Totals
1/ Included
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
19,703
133,655
—
5,482,509
222,985
in total imports, column 2.
1,441,152
75,807
19,703
**
69,627
'
22,747 ;
14,796 ^
12,853
«
~
25,443
7,088
1,599,886
f
j
§ff
f
1
\
j
j
1 9 ,7 0 3
!
FOR’ IMMEDIATE RELEASE
July 13 3 19U8_______ '
-
5
1
TV
The Bureau of Customs announced today “that preliminary data on imports of
cotton and cotton waste chargeable to the quotas established by the President’s
proclamation of September 5? 1939? as amended, for the period September 20,
1947, to July 3
1948 ,i & ^ u&&v?ollows:
COTTON (other than linters)
(In pounds)
Country of
Origin
Under 1-1_/8" other
than rou^gh or harsh
undei 3/4”
Established Imports Sept.
Quota
20, 1947, to
July 3. 19R8
Egypt and the
Anglo-Egyptiah
Sudan....... .
783>816
Peru.............
*247 >952
British'India.•.1 2>003,483
China....... ♦.... 1,370,791
Mexico...........
8,883;259
Brazil"...........
618,723
Union of Soviet
■ -’
S 0 clali st R epub-‘
lies.......«.•...
475,124
Argentina. ^.... ‘
.1
5,203
Haiti. ..... .....
•237
Ecuador..........
9,333
Honduras.........
752
Paraguay.........
871
Colombia.........
124
Iraq.............
195
British East
Africa.... .......
2 ,2 4 0
Netherlands *East’
Indies... ii.»-1...
71,388
Barbados.........
Other British
West Indies l/...
2 1 ,3 2 1
Nigeria.........
5,377
Other British
West Africa 2/...
16,004
Other French
Africa 3/........
689
1-1/8” or more
but less than
1-11/16" tj
Imports Sept.
20, 1947, to
July 3, 1RU8
217,952
20,U22
8 ,8 8 3,2 5 9
618,723
1*3,57l*,1*72
1,903,999
-
1*75,121*
—
Less than 3/4”
harsh or rough 5/
Imports Sept. 20,
1947, to July 3
19U8
ia,377 ,0 35
-
-
-
-
177,91*9
-
-
—
,
14 516,882
1/
2/
3/
4/
5/
10,2U5,U80
U S , 656,1+20
Other than Barbados, Bermuda, Jamaica, Trinidad, and Tobago,
Other than Gold Coast and Nigeria.
Other than Algeria, Tunisia, and Madagascar.
Established Quota - 4 5 ,656*420.
Established Quota - 70*000,000.
Ul,377,03$
TREASURY DEPARTMENT
,
Washington
IMMEDIATE RELEASE,
Thursday, July 15» 1948
No# .S-791
The Bureau of Customs announced today that preliminary data on Imports of
cotton and cotton waste chargeable to the quotas established by the President's
proclamation of September 5? 1939,xas amended, for the period September 20,
1947, to July 3, 1948, inclusive are as follows:
COTTON (other than linters)
(In pounds )
Country of
Origin
'
*
Under l-l/8" other
than rough or harsh
under 3/4"
Imports Sept#
Establish ed 20, 1947, to
July 3 j 1948
Quota
Egypt and the
Anglo-Egyptian
Sudan.... ...«•«•#. »
Peru#••••••••....
British India#.....,
China..... .
.
Mexico# ....... ••• •
Brazil. •«•..... .. ,
Union of Soviet
Socialist
Republic s..#.#...#*
Argentina......... .
Haiti••..#.••••••• .
Ecuador# •........ • »
Honduras.......... .
Paraguay.#..•••••• .
Colombia#
B
Iraq..•• ••..... .. .
British East
Africa.......... . .
Netherlands East
Indies.•••••••••••
•
Barbados
Other British ~
West Indies l/.•.• #
Nigeria# • ••.......
Other British
West Africa 2/#.•• .
Other French
Africa
..... #
Algeria and Tunisia
783,816
2 4 7,9 5 2
2,003,483
1,370,791
8,883,259
618,723
475,124
5,203
237
9,333
752
•871
I 24
195
247,952
l-l/8" or more
but less than
1-11/16" 4/
Imports Sept#
20, 1947, to
July 3» 1948
Less than 3/4"
harsh or rough 5/
Imports Sept©
20, 1947, to
July 3s 1948
45, 574* 4 /2
1,903,999
20 ,4 2 2
—
8 ,8 8 3,2 59
618,723
t
475,124
-
177,949
—
—
41,377,035
—
-
2 ,24 O
71,388
—
21,321
5,377
16 ,0 0 4
%
I
689
—
14,516,882
10,245,480
45,656,420
1/ Other than Barbados, Bermuda, Janaica, Trinidad, and 'JVjbago.
2/5 Other than Gold Coast and Nigeria#
3/ Other than Algeria, Tunisia, and Madagascar#
/
Lj Established Quota - 45,656,420#
/
5/ Established Quota - 70,000,000*
4 1 ,3 7 7 ,0 3 5
-
2
-
COTTON WASTES
(In pounds)
COTTON CARD STEEPS made from cotton having a staple of less than 1-3/16 inches
in length, COMBER WASTE, LAP WASTE, SLIVER WASTE, AND R0VIM3 WASTE, WHETHER
OR NOT MANUFACTURED OR OTHERWISE ADVANCED IN VALUE5 Provided, however, that
not more than 3 3 --1 / 3 percent of the quotas shall be filled by cotton wastes
other than comber wastes made from cottons of 1 - 3 /1 6 inches or more in staple
length in the case of the following countries: United Kingdom, France,
Netherlands, Switzerland, Belgium, Germany, and Italy:
Country of Origin
United Kingdom*»«••
Canada*••..*.....*»
Franc e*•••».*•*»«•.
British India*«•••#
Netherlands.•*.....
Switzerland.•••••••
Belgium*...........
Japan.••«••••••.•**
China*••«»**••*•*•*
Egypt..............
Cuba.»**«**»*»»•*•«
Italy ****•.*••••**•
Totals
c----- :— M,-- ;------
1/
V
•
:ESTABLISHED
:TOTAL QUOTA
4,323,457
239,690
227,4 2 0
69,627
' 6 8 ,2 4 0
44,388
33,559
34 1 ,535
17,322
8,135
6 ,544
76,329
21,263
5,482,509
Total imports,
Sept. 20, 1947,
to July 3,1948
19,703
1 3 3 ,6 5 5
Established
33-1/3$ of
,Total Quota
1 ,44 I, 152
—
75,807
Imports
Sept. 20,1947, to
July 3, 1948 1/
...
19,703
—
—
69,627
22,747
14,796
12,853
25,443
7,088
222,985
1 , 599,886
Included in total imports, column 2*
oOo
IJ
1
/■
19,703
0
■*
FOR IMMEDIATE RELEASE
July 13» 19^8
The Bureau of Customs announced today preliminary figures shoving
the imports for consumption of commodities vithin quota limitations
provided for under the General Agreement on Tariffs and Trade, from the
Beginning of the quota periods to May 29, 19^+S, inclusive, as follows:
Commodity
♦
e
:
•
•
Period and Quantity
: Unit :Imports as
:
of
:of July 3 »
¡Quantity: 19U3
Whole milk, fresh or
sour
Calendar year
3 ,000,000
Callon
Cream, fresh or sour
Calendar year
1 ,500,000
Callon
Butter
Qjiota ineffective for the
period April through October
Fish, fresh or frozen,
filleted, etc*, cod,
haddock, hake, pollock >
Calendar year
cusk, and rosefish
White or Irish
potatoes:
Certified seed
Other
12 months from
Walnut 8
May
Sept. 15, 19^7
22 «* Dec.31*
M
75
6H3
(1 )
2^,930,188
Pound
1 3 ,0 7 7 .^ 9 2
150 ,000,000
60,000,000
Pound
Pound
1^9,093,628
52.979.6X0
3*333.333
Pound
9^*719
19^43
(l)
The proviso to Item 717(*>) limits the
imports for consumption at the quota
rate to 13,697,6^1 pounds during the
first 9 months of the calendar year*
Due to a provision of the President*s proclamation Mo, 2769 of
January 30» 19^-8 , in which the entry of a specified quantity of Cuban filler
tobacco, unstemmed or stemmed (other than cigarette leaf tobacco) and scrap
tobacco affects the rate of duty on such tobacco from countries other than
Cuba, a record is maintained of imports from Cuba. 10,975»602 pounds of
such Cuban tobacco were imported for consumption during the period January %
to July 3 » 1 9 ^ § inclusive.
TKEASURÏ DEPARTMENT
Washin gt on
IMMEDIATE RELEASE
Thursday» July 1$, 1948.
No.S-792
The Bureau of Customs announced today preliminary figures showing the
imports for consumption of commodities within quota limitations provided
for under the General Agreement on Tariffs and Trade, from the beginning
of the quota periods to May 29, 1948* inclusive, as follows:
Commodity
1
Period and Quantity
*
•-
Unit : Imports as
of
: of July 3,
:
« Quantity:
1948
r
Whole milk, fresh or
sour
Calendar year
3*000,000
Gallon
4,675
Cream, fresh or sour
Calendar year
1,500,000
Gallon
648
Butter
Quota ineffective for the
period April through October
Fish, fresh or frozen,
filleted, etc*, cod,
haddock, hake, pollock,
cusk, and ro sefish
Calendar year
White or Irish
potatoes:
Certified seed
Other
Walnuts
(1 )
Pound
24,930,188
13,077,492
12 months from 350,000, 000
Sept. 15, 1947 60,000,000
Pound
Pound
149,093^628
52,979,610
May 22 - Dec.31,3,333,333
’ 1948
Pound
98,719
(l)
The proviso to Item 717 (b) limits the
imports for consumption at the quota
rate to 18,697,641 pounds during the
first 9 months of the calendar year.
Due to a provision of the President’s proclamation No« 2769 of
January 30, 1948, in which the entry of a specified quantity of Cuban filler
tobacco, unsstemmed or stemmed (other than cigarette leaf tobacco) and scrap
tobacco affects the rate of duty on such tobacco from countries other than
Cuba, a record is maintained of imports from Cuba* 10,975*602 pounds of
such Cuban tobacco were imported for consumption during the period January 1,
to July 3, 1948, inclusive.
Mar 4 %ܧ9
TO Iß« BASfïïlft
Tim following smxkët transactions m m mâm «taBKbig the month
of June, X Ä 4 la direot and guaranteed »
Itte s of the G w *m ~
sont for Treasury investment and other acoountsi
I 200,000
Sales
Purchases *••****•##»••♦•****••# ^3^,500
Set
Purchases ###**** la, u b , 50 0
(Sea.) s.,p. Gerard!
Chief, Division of Investments
7/6A8 k*
TREASURY DEPARTMENT
Information Service
W ASHINGTON, D .C .
RELEASE, MORNING PAPERS, ' .
Thursday, July 15» 1948
N°» 5—793
During the month of June, 1948* market trans
actions in direct and guaranteed securities of the
Government for Treasury investment and other accounts
resulted in net purchases of {jj>l,124 * 000* Secretary
Snyder announced today*
oOo
Iff
j§
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 il£ of the Revenue Act of
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 No. lfL8> as amended, and this notice, prescribe
the terms of the Treasury bills and govern the conditions of their issue.
of the circular may be obtained from any Federal Reserve Bank or Branch.
Copies
p.
ill
■
mm
-
2
-
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, non-competitive tenders for $200,000 or
less without stated price from any one bidder will be accepted in full at the
average price (in three decimals) of accepted competitive bids.
Settlement for
accepted tenders in accordance with the bids must be made or completed at the
Federal Reserve Bank on
July 22. 19ti8
, in cash or other immediately avail'
* ~~
. .f
able funds or in a like face amount of Treasury bills maturing
July 22, 19U8
Cash and exchange tenders will receive equal treatment.
Cash adjustments will be
made for differences between the par value of maturing bills accepted in exchange
and the issue price of the new bills.
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 the Internal Revenue Code, or laws amendatory or supplemen
tary thereto.
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
f
I -
>s I ’/ /¿ v H H
l
_i
V
hereafter imposed on thb^principal or interest thereof by any State, or ary of the
possessions of the United States, or by any local taxing authority.
For purposes
xraoc
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Friday, July 16, 19U8.
The Secretary of the Treasury, by this public notice, invites tenders for
$ 900,000,000
, or thereabouts, of
^91
in exchange for Treasury bills maturing
-day Treasury bills, for cash, and
July 22. I?ii8
* to be issued *n
$iq)x
a discount basis under ciompetitive and non-competitive bidding as hereinafter
provided.
will mature
interest.
The bills of this series will be dated
October 21, 19ii8
July 22, 19k8
, and
----------------------------------------
, when the face amount will be payable without
They will be Issued in bearer form only, and in denominations of
$1,000, $5,000, $10,000, $100,000, $500,000, and $1 ,000,000 (maturity value),
Tenders will be received at Federal Reserve Banks and Branches up to the
daylight saving
closing hour, two o*clock p.m., Easternjfcbmadsrri time, Monday, July 19« 19k8
Tenders will not be received at the Treasury Department, Washington. Each
tender must be for an even multiple of $1,000, and in the case of competitive
tenders the price offered must be expressed on the basis of 100, Tilth 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.
RELEASE, MORNING NEWSPAPERS,
Frida:', July 16; 1948»__ ___
No# S-794
The Secretary of the Treasury, by this public notice, invites tenders
for $900,000,000, or thereabouts, of 91-day Treasury bills, for cash and
in exchange for:Treasury bills maturing July 22, I94 S, to be issued on
a discount basis under competitive and non-competitive bidding as herein
after provided# The bills of this series will be dated July 22, 1943, and
will mature October 21, 1943, 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)# >V::
Tenders will be received at Federal Reserve Banks and Branches up to
the closing hour, two o fclock peme, Eastern daylight saving time,
Monday, July 19, 1948# Tenders will not be received at the Treasury
Department, Washington# Each tender must be for an even multiple of
$1,000, and in the case of competitive tenders 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 reject any or all tenders, in whole or in
part, and his action in any such respect shall be final. Subject to these
reservations, non-competitive tenders for $200,000 or less without stated'
price from any one bidder will be accepted in full at the average price
(in three decimals) of accepted competitive bids# Settlement for accepted
tenders in accordance with the bids must be made or completed at the
Federal Reserve Bank on July 22, 1943, in cash or other immediately avail
able funds or in a like face amount of Treasury bills maturing July 22,
1948# Gash and exchange tenders will receive equal treatment# Cash
adjustments will be made for differences between the par value of maturing
bills accepted in exchange and the issue price of the new bills#
-
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 the Internal Revenue
Code, or laws amendatory or supplementary thereto». 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 jhe United States, or by any local taxing authority« For
purposes of taxation the amount of discount at which Treasury bills are
originally sold by the United States shall be considered to be interest*
Under Sections 42 and 117 (a) (l) of the Internal Revenue Code, as
amended by Section 115 of the Revenue Act of 1941* the amount of discount
at which bills issued hereunder are sold shall not. be considered to accrue
until such bills shall be sold, redeemed or otherwise disposed of, and
Such bills 'are excluded from consideration as capital assets* Accordingly,
the owner of Treasury bills (other than life insurance companies) issued
hereunder need,include in his income tax return only the difference between
the price paid 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 loss9
•
Treasury Department Circular Do* 41S, &s 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*
0O0
June 2 S , I
9I1S
' /i f/ 5
MEMORANDUM
TO;
Mr. Saxon
FROM:
Mr, Shere
Under Secretary Wiggins has today approved for release
the Division of Tax Research study entitled «Federal Excise
Taxes on Alcoholic Beverages,« together with the proposed
press release. In accordance with the usual procedure, we
are turning the stencils for this study over to Miss Waite
for the processing of the necessary copies. Will you kindly
set as early a release date as is practicable.
S'
TREASURY DEPARTMENT
Vvashingt on.
RELEASE M3RNING NEWSPAPERS,
Friday, July, 16y 1948 .
/
No© S-795
Problems connected with the taxation of distilled and malt liquors
and wines are discussed in a Treasury- staff study entitled uFederal Excise
Taxes on Alcoholic Sever ages11.made public today 0 The study is one of a
series of analyses dealing mth'postwar tax revision© It is not intended
to. make policy recommendations, but to provide information of use in
determining whether the taxes in question should be modified© .
Subjects covered in the study include the economic backgrounds of
the affected industries, the effects of the taxes on-profits, and their
bearing on business costs and competition©' Administration and compliance
matters and certain technical questions also are covered© The taxes im
posed on alcoholic beverages in the United States-are compared with those
levied in Canada and the United Kingdom©
The present tax of £9 per proof gallon on distilled spirits is the
largest single source of excise tax revenue© It amounts to roughly 50
percent of the retail price of popular liquor brands0 The rate was $3 'in
194-0, went to 0-4 in 194-1* to 06 in 1942, and to $9 in 194-3o The Worid
War I rate increases were from $1©10 per proof gallon (1914) to $3o20 in
1917 and 06©40 in 1918© The top World liar I rate remained in effect
through the prohibition era© The tax v/as fixed at $2 in January, 1934©
For the fiscal year 1947 the 09. per. proof gallon rate yielded a
total Federal revenue-of $1,685,400,000© This was slightly less than the
1946 yieldo *Most of the tax is paid on whiskey0
Wartime restrictions on the production of whiskey resulted in wide
spread ’’stretching”'of whiskey stocks through the blending of whiskey with
neutral spirits© In the fiscal year 1947 about 90.percent of the whiskey
bottled in the United States was blended, compared with about 50 percent
in the fiscal year 1943© Stocks' of whiskey in bonded warehouses declined
sharply during this period, but have since been restored to near their
prewar peak©
The distilled spirits industry is marked by concentration of supply©
Four companies have assumed a leading position© For the fiscal year. 1947
they accounted for 75 percent of the domestic, whiskey bottled for consump
tion© , The industry has a producing capacity .greatly in excess of consump
tion©
Income and price changes probably have an important bearing on the
demand for distilled spirits© It is difficult to draw definite conclu
sions as to their effect, however, for a period which has been marked by
such- abrupt changes as prohibition and repeal, and by the abnormalities
of the war era© ■
Since repeal, consumption has increased almost continuously from year
to year, and the increases exceed the growth in population* During the
war the increase in estimated expenditures for distilled spirits was rela
tively much larger than the increase in the level of income. For 194-6,
estimated consumer expenditures for distilled spirits amounted to 3,5
percent of disposable income, compared with 2.2 percent in 1939* Past
experience does not indicate whether there will be a significant long
term growth in consumption.
It is doubtful, according to the
in the excise tax affected profits of
war. The future effect of the tax on
of competition and price policy which
study, that the wartime increases
the Industry appreciably during the
profits will depend on the pattern
develops in the postwar period.
As to whether high liquor taxes cause more widespread bootlegging
and ,,moonshiningn', the study says there is no present way of determining
the extent to which illicit liquor operations wrould be carried on under
different rates of tax. The future level of illicit operations will
depend to a substantial extent on the level of consumer incomes and
other“factors, as well asthe rate of tax.
A tax on fermented malt liquors such as beer and ale has been in
effect continuously since 1862, ‘
The tax per barrel of 31 gallons was
$6 in 194-0, It went to $7 in 194-2 and to $8 in 1944* For the World
War I period, comparable increases in the tax were from $1.50 (1914-) to
$3 in 1917 and to $6 in 1918, The $6 tax remained in effect during pro
hibition, and viras reduced to $5 in 1933*
The tax on beer is the third most important source of excise revenue,
ranking after the distilled spirits tax and the excises on cigarettes.
The beer tax yielded $661,400,000 for the fiscal year 1947*.
Beer is produced in all but 10 states, but about 80 percent of the
breweries are located in 13 states. Some increase in concentration
appears to have occurred in the industry since 1935*
Per capita consumption of beer from 1933 to the outbreak of World
War II was only a little more than half as high as in the years just
preceding World War I, indicating that a change in consumer habits had
occurred during prohibition. By 1945, however, increased per capita
consumption again approached the pre-prohibition peak. Nevertheless,
estimated consumer expenditures for beer are now lower in relation to
disposable income than they were before the war.
There Is little evidence as to the bearing of either price changes
or taxes on beer consumption.
The wartime tax increases probably did not adversely affect beer
sales during the war, due to price ceilings and to the limitations on
materials and supplies v/hich tended to restrict output. The present
high level of demand in relation to productive capacity minimizes, any adverse
3
effect of the tax on sales* If price competition should again become in
tensive, the tax would tend to have a more adverse effect on the profits
of producers in the principal market areas*
Wines have been taxed continuously since 1914* The rates vary
according to wine types, and in the case of still wines are scaled
according to alcoholic content* The principal rates are: Still wines, .
not over 14 percent alcohol 15 cents per wine gallon, 14 percent to 21
percent alcohol 60 cents per gallon; sparkling wines, natural, 15 cents
per J pint, and artificially carbonated, 10 cents per -J pint*
These present rates are roughly three or four times those prevail
ing before the war*; There were similar increases in wine taxes at the
time of World War I* The revenue yield is not large; for the fiscal
year 1947 it was #57,200,000.
Home wine production was stimulated during the prohibition period,
and it has been estimated that the amount of home-produced wine in the
period 1936-39 exceeded the tax-paid withdrawals of wine containing not
over 14 percent alcohol.
The domestic wine industry is concentrated heavily in two sections.
One of these is California, and the other is a group of eastern states,
notably New York. California produces more than 90 percent of the total.
Fluctuations in wine production are large — even larger than the fluctua
tions in grape production. To a large extent, wineries are operated by
the producers of grapes*
Wine consumption increased rapidly following repeal. There was
little increase during the war years, but a large rise occurred in 1946*
It is doubtful whether the increases in tax rates had a very
significant effect on the volume of wine sales during the war. The tax
increases were relatively larger than the beer tax increases, and
generally larger than the liquor tax increases, but the wine taxes had
been much lower before the war than the beer or liquor taxes, both on
the physical volume basis and in relation to price*
The present tax represents about 5 percent of the price for the
lowest priced brands of wines of lower alcoholic content, and ranges
from 10 to 20 percent of price of the ’'fortified’1 wines, or those of
higher alcoholic content. The tax on wine of higher alcoholic content
is a more important element in price, but it is still much fewer than
the tax on distilled spirits.
However, in the event of a recurrence of extreme competition in
the industry it might become difficult for producers of wine to shift
the tax forward to consumers.
- 0 -
FEDERAL EXCISE TAXES 021 ALCOHOLIC BEVERAGES
PART I
- Excise Tax on- List 13.1ed Spirits
PART II
- Excise Tax on Fermented Malt Liquors
PART II.I L Excise Taxes on -fines
PART IV
- Excise Tax on Rectified Spirits and Wines
PART V
- Comparison of Taxes on Alcoholic Beverages in
the United States, Canada and United Kingdom
Division of Tax Research, Treasury Department
June 19 US
'
Federal Excise Saxes on Alcoholic Beverages
One of the important questions in tax revision concerns
the changes to "be made in the extensive list of excise taxes.
This stud.?/ is one of a series on the commodities and services
subject to excise tax. The purpose of the studies is to make
available data on tax rates, revenue and the economic back
ground of the industry and to discuss the effects of the tax
on profits, business costs, competition and consumers. The
administration of the tax and the principal technical problems
that arise are also considered. The studies are not intended
to make policy recommendations but to provide information and
analyses which would be useful in appraising the desirability
of revising the taxes.
The study was prepared in the Excise Tax Section of the
Division of Tax Besearch. In its preparation valuable
ansi stance was received from other members of the Treasury tax
staff, including the Office of Tax Legislative Counsel on
legal matters and the Bureau of Internal. Bevenue on adminis
trative matters.
Division of Tax Research.
U. S» Treasury Department
June I9 US
1»
FEDERAL EXCISE TAXES OIT ALCOHOLIC BEVERAGES
TABLE ÛE. COETEETS
PART I - Excise Tax on Distilled Spirits
Page Do.
Description of the tax .......«..... %....... ..............
1
'Changes in the tax since 1913 .................. . .....
2
Revenue collections, 1936-19^7 ..... .................. •
2
Economic Background of the industry ........ ....... .
A. Character of supply ........ ..... ........- --1 . Sources’of supply and types of products .......
2. Concentration of supply ..............•......
3 . Competition and price policy
^ ..........
R. Costs and prices ..........................
B . Character of demand
■......*•*
C. Outlook for the industry .
.
.
.
.‘«* •*••
3
11
15
16
18
..............
Effects of the tax .> *.
A. On profits .............. .............
B. On "business costs and competition........ ........
C. On consumers ......................... .......... •*.
21
21
24
25
Administration and.compliance ,*..... —
Technical problems ............. *
3
3
9
« •........
.................
^
A; Eloor stacks taxes and refunds ••*.... 28
B . " Drawback on distilled spirits used in non-beverage
produc ts ................. .
31
33
PART II - Excise Tax on fermented. Malt Liquors ....
Description of the tax .*.. ♦
^
‘
33
Changes in’the tax since 1913 •*.... <*•..........
33
Revenue collections, 193^~19^7 ............ ***..... . *•
3^
Economic background of the industry .....................♦
A. Character of supply . ..............*••*........--B. Character of d e m a n d .... ..... ................*•••
C . Outlook for the industry .. ^.......... .
.^
^
(Continued)
'
'
•. TAB11B 6P C01TTMTS.
-
PART II
V.
-
2
-
(Continued)
Page Ho.
Effects of the tax
.......... ..................
A. On profits
.... 50
B. On competition ................... .....r
C . On consumers.... .
§!>•
55
VI.
Administration and compliance ...................... ......
5^
VII.
Technical problems ................ ........... ...........
A. Floor stocks taxes andrefunds ..........
B , The taxation of imported “beer ...........
56
56
59
PART III
Excise Taxes on Wines .........
50
60
I.
Description of the tax .............
60
II.
Changes in the tax since 1913.............................
60
III.
Revenue collections, 1936 -19 U 7 .........---- ...............
62
IV.
Economic 'background of the industry
.... ........ .
A. Character of supply .................. ..............
1. Types of wines and sources ofsupply ...____.......
2 . Concentration of production ............... .
3 . Competition and price policy .....................
Costs and prices
............ .
B . Character of d e m a n d ..... ........ ....;.... .
C. Outlook for the industry ........... .
62
62
62
66
68
72
7U
7%
Effects of the tax ............................
79
V.
A.
On prof11s .. .
.........
.... ........... ....... .
B. On competition ......................................
C. ■O n -consumer s ...................
.
VI.
VII.
Administration and compliance . . . . . . . . . . . . . . . . . . . . . .
Technical problems
................................ ..... .
A. Rates for different types of wine
B . Floor stocks taxes and refunds
.....
1
(Continued)
79
g]_
g2
83
33
83
gif.
tabde 6# commas
Pago H o .
I.
II.
PART IV - Excise Tax on Rectified Spirits and Wines "...
gg
description of the tax ... ...i.... .........................
gg
Changes in tax rate ...............A ....................
gg
III.
Revenue collections, 1936-19^7..... ............... .... .
69
IV.
'Economic background of the industry
..........
89
1..........
92
Administra/tion and compliance ..... .......................
93
V.
VI.
* Effects of the tax . . ..... ................
PART V - Comparison of Taxes on Alcoholic. Beverages in
the United States, Canada, and United Kingdom .
I.
• Limitation on comparisons .
.... ..
9^
9 *+
II.
Types of taxes levied on alcoholic beverages ..............
: A. C a n a d a ....... ......
w..
Bi United Kingdom ...........*......... ....... .......
9^
9U
96
III.
Comparison of taxos for selected products .................
■ 99 >
Appendix- Special Taxes Relating to Distilled Spirits, Eermented
Malt'Liquors and Wine as of December 31* 1 9 % .......
101
TABLE OF CONTENTS
v V TABLES
Page Eo
PART I
1
Types of distilled spirits available for
consumption.as beverages, I9 U 1 ..,..........
3
5
Excise Tax on Distilled Spirits:
Distilled spirits: Tax-paid withdrawals, produc
tion at registered and fruit distilleries, and
stocks in internal revenue 'bonded warehouses,
fiscal years 19 35 -1 9 ^ 7 ____ .................. ;....
2
^
-
.
•
1*
A ..,..
6
Whisky: . Domestic production, tax-paid withdrawals,
and stocks on hand June 30, fiscal years 193 H-I9 U 7
7
Amount of whisky bottled by types and amount
produced by rectification, fiscal years 1939 -19^7 -
8
Ifl/hisky by trapes:- Dumber of brands and price range
in Virginia'State stores 1 9 3 7 , 1 9 3 9 , and I9 I+7 ....
13
6
Disposable income,, tax-paid withdrawals of
distilled spirits and consumer expenditures for
di sti lied spirits, 19 35 -19 ^ 6 . . . . ___ ____19
7
Stocks of whisky in internal revenue bonded ware
houses as of June 3 0 , 19^6 and 1947 .............
20
Dumber of corporation income- tax returns, receipts
and net income of distillers and distributors
of distilled spirits, 19 3 $-19^5 ...................
22
Eet profits and rate of return on net worth of
distillers reporting to Securities and Exchange
Co Emission, 1936-19^-6 .............................
23
Floor stocks of tax-paid distilled spirits in
possession of producers and distributors on dates
of imposition of floor stocks taxes under
Revenue Acts of 19'40-19i+3 ........................
30
S
9
TABLE' 03? CONTENTS
.\ V > 5 TABLES (Continued)
Page No,
Excise Tax on Fermented Malt Liquors:
Number of brewerie s operated} production, and
withdrawals of fermented malt liquors, fiscal
years 19 3 ^-19^7
........ ..............
36
Fermented malt liquors: Number of breweries and
production grouped according to the number of
breweries operated in a State, fiscal year 19 ^+7 ••
Production and consumption of fermented malt
liquors by regions and States, 19^1 .........
Number of breweries and production of fermented
malt liquors by size of brewery, fiscal year 19^-6
Disposable income, tax-paid withdrawals of beer
and consumer expenditures for beer, 193 ^~ 19 ^ 6 ** ••
Materials used and production of fermented malt
liquors, fiscal years 19 35 -19^7
.... .
10
1
Breweries and malt producers: Number of
corporation returns, compiled receipts, net
income or deficit, and income taxes, 19 38 -19 ^ 5 *••
51
Net profits before-and after income taxes, and
rale of return on net worth of breweries report
ing to Securities and Exchange Commission,
1936 - 19 US .* •••____ - .........................
52
Fermented malt liquors: Tax and tax plus mark-up
on the tax for selected retail sales- units and
various changes in rate of tax per barrel .......
53
Floor stocks of tax-paid fermented malt liquors
in possession of producers and distributors on
dates of imposition of floor stocks' taxes under
Revenue Acts of 19^0-19^-3...... .................
5S
TABLE OF COHTÉîTTS
-
6
-
TABLES (Continued).
Page Ho
PART III- 1
2
3
^
^
7 -
9
^
Excise Taxes on Winesî
Still wines: - Wineries operated, production, -taxpaid withdrawals,, and stocks on June 30» fiscal
years I9 3 5 -I9 U 7
... .......
'
Sparkling wines: Premises operated, production,
tax—paid withdrawals, and stocks on June 30-»
fiscal years 19 35 -1 9 ¿ 7
... ........V. .V ..
6U
65
Humber of establishments producing wine aril value
of products classified by size of value of
products, 1939 __________ y,,,.,*....,,..*,......
67
California grapes: Harvested production, crush by
commercial wineries, and average price paid to
farmers for grapes crushed by wineries, 19 33 -19 %
70
Wines by types: Humber of brands and price range
in Virginia State stores 1 9 3 7 , 1938 and 19 % .....
73
Domestic still wines: Wholesale prices in, bulk in
San Francisco and retail price's -in Pennsylvania ■
State stores, 1933-1936..... .................. ..
75
Disposable income, tax-paid withdrawals of wine and
consumer expenditures for wine, I9 3 U - I9 Î1 6 .....
77
Wine Producers: Humber of corporation returns,.
compiled receipts, net income or deficit, and
income taxes, 1938 -19 ^ ...........
go
Still wines: Tax-paid floor stocks in possession ■
of producers and distributors oh date of imposition
of floor stocks taxes under Revenue Acts of 1°-^11 9 P ..................
86
Sparkling wines: Tax-paid floor stocks in possession.
of producers and distributors, on date of imposition
of floor stocks taxes under Revenue Acts of lQl|.i^
W
... .......
S7
.. .
TABLE OP CONTENTS^
,
, v
- 7 .TABLES (Concluded)
PART IV
-
Excise Tax on Rectified Spirits and Winesi
Pase lio
Production of rectified spirits and wines Ly
types, fiscal years 193& - 19^7 %* • •
» *» •-
90
domestic' distilled spirits: Tax-paid withdrawals
and amount Used for rectification, fiscal years
1912 - 191S, and 1935' - 19^7 * ••••••.............
91
II
1
FEDERAL EXCISE TAXES Oil ALCOHOLIC BEVERAGES
“N
PART I
-
Excise Tax on Distilled Spirits l/
X • Description of the tax
The-tax is applicable to all distilled spirits produced or
imported into the United States, and all products of distillation
containing distilled spirits or alcohol on whiah the tax has not been
paid. The tax is levied at a specific rate on the proof gallon or
wine gallon, if below proof. 2 /
Payment of tax is required at the time- the product is withdrawn
from the internal revenue or customs bonded warehouse. The tax is
paid by purchasing tax stamps to be affixed to the containers prior to
withdrawal from bond.
The principal exemptions from tax are withdrawals for the follow
ing purposes!
1.
2.
3-
*+.
Export.
Ethyl alcohol foi* industrial use or in the
manufacture of chemicals.
Ethyl alcohol for use by the Federal, State or
local governments, a, university or college,
laboratory for scientific research, or hospital
or charitablo clinic.
Brandy and wine spirits for use in the fortification
of wine.
1/ j.his analysis is limited to the gallonage tax. In addition to
this tax tnere are special taxes on distillers, dealers and others
engaged in the industry as well as stamp taxes on containers. (Sec
Appendix, p. 1 0 1 .) The tax on rectification is considered in Part
IT below.
2J The proof gallon or gallon of proof spirits is one Hwhich contains
one—half its volume of alcohol of a specific gravity of ... (»7939 )
at sixty degrees Fahrenheit51 (internal Revenue Code, Section 2 S09 ) ,
Imported perfumes containing distilled spirits are taxed on the
ba.sis of the wine gallon of perfume.
3/ Provided it is rendered unfit for beverage or liquid medicinal
purposes, or is changed into some other chemical substance.
-
II*
2
-
1 ■ (.j ;
■
Changes In the tax since 1913
Distilled spirits have been taxed continuously .since 1862*
During the prehibition period withdrawals of beverage spirits were
permitted only for medicinal purposes, and such spirits were taxed at
the non-beverage rate then, in effect* Beginning with the' Revenue Act
of 1942 a drawback has been allowed on distilled spirits used in
medicines, food flavorings and food products unfit for beverage
purposes* The tax rates and effective dates of changes since 1913 are
shown below? _ : .
Changes in tax rates since 1913
(Per proof gallon)
Revenue
Act
1917
1918
1926
1934
: /Effective
? " date
:
? "
?îRevenue : Effective
?: Act
?
date_
In effect
Jan* 1 , 1914
$ 1,1©
Oct* 3 *
3,20 aj
Feb* 24, 1919
6.40 a/
Dec. 5, 1 9 3 3 b /
1 .1 ®
c/ Jan. 12
2.00
1938
1940 ;
1941
1942
1943
July
f.July
Oct.
Nov.
Apr.
S ; pa^e
?
'$ 2.25
3.00
4.00
' 6 .0 0
1
1, 1944
9;,00
1
1
1
d/
ej
■'
fj
g/
a/ Beverage rate* Rates for other than beverage purposes were $2.20
under Revenue Act of 1917, effective October 3, 1917; $1*65 and
$1.10 under the Revenue Act of 1926, effective January 1, 1927 and.
January 1*.. 1928, respectively.
*
.
b/ Made-'effective by the Twenty-first Amendment.to the. Constitution. .
cj Liquor Taxing Act of 1934.:
§J Brandy taxed at $ 2 , ■
7
ej Brandy taxed at $2.75,
fj Drawback of. $3,75 if used in flavorings,.medicines, or food products
unfit for beverage purposes.
g/ Drawback of $6 if used- in flavorings,: etc, .
•
<•
III#
Revenue collections. 1936-1947
- '.
T hertax on distilled spirits is the largest single source -of excise/
tax revenue-. This tax produced 6 8 ’percent' of., the total collections from
taxes on*alcoholic'beverages and-23:percent bf total excise tax collections
for the fiscal year 1947*.
■ -
Collections, fiscal years 193^19^7 a/
.. .
• Fiscal
• year
.
1936
1937
* • I9 3 S
1939
19^0
I9 U1
. 2.
i.r
(In.millions)
»*% Fi seal
Collections r>
4
•* year
9*
2 7 ^ .0
26O.I
19^2
19 U3
19^+
T 2S3.6 '
317.7
1*28.6"
I9U 5
19 H6
19 U 7
' $ 222«H
'*
*•*
Collections
.
#<;•
' ' $ 5 7 U .6 .
781-9
%
,;
l,UgU*3
1,7U6,6
l,6g5*U
a/ Represents collections from the gallonage tax only#
Collections do not reflect drawbacks allowed on spirits
;• for non-beverage use#
IV#. Economic background of the industry
*;A#
Character of supply
1#
Sources of supply and types of -products
* ■
'
!
, J?]
Prior to the war domestic production accountèd for about 90
percent of the distilled spirits consumed in the United States#
After restrictions were placed on domestic production imports
increased and reached a peak of more than one-third of consumption
in the fiscal year 1 9 ^ *
(Table l) Imported spirits are _subject to
both customs duty and the internal excise tax# The duties have
tended to limit imports to specialty products, of which Scotch
whisky has normally been the most important . Under the Geneva
trade agreements the duty was reduced effective January 1 , 19^8
from $2*50 per proof gallon. .to*..$2 #25 .on. run,. $ 1#50 on whisky and
$1 .2 5 on brandy, gin, cordials and liqueurs#
'
'
ÏÏÆÈtSSËty
The tax on distilled spirits is applicable to a wide variety
of products* However, most of the tax base normally is represented
by whisky, which is- sold either as straight whisky or blended with ,
neutral spirits* !/ In. I9 Î+I, the last year when domestic production
1/ Uhisky blended with neutral spirits must be labeled as ‘’blended
whisky” or “spirit whisky” , according to the composition, and
is commonly referred to as a “spirit blend”* (Regulations No* 5 »
issued under provisions of the Federal Alcohol Administration
Act, as amended, Secs* 21 and 3 ^*)
-
h-
Table 1
Distilled spirits^ Tax—paid withdrawals, production at
registered and fruit distilleries» and stocks in internai
revenue bonded warehouses, fiscal years 1935-"19^7
(in millions of tax gallons) l/
i
îStocks in
;
;bonded wareiFroduction; houses at
: Distilled spirits * Ethyl
; end of
lotal ï Domestic * Imported 5 alcohol !
: _________:fiscal year 2/
T a x - p a id
Fiscal
year
w ith d r a w a ls
1935
1936
1957
193 g
82 .5
1 10 .2
I3 6 .2
129.2
58 a
76 .3
87.7
1 6 .1
1 U .3
1939
19 U0
19 H1
19*42
I 2 5 .7
IUÒ .7
lUl.g
92 .U
10 U .0
10 2 .7
119 .3
1 1 .1
1 2 .H
ll . 2
19^3
19 UU
I9U 5
15 U .6
1 H 2 .2
16 s. 6
1 3 1 .2
17.8 1 /
51.7 1 /
26.3 1 /
19.7 M
1 5 .6 1 /
1 5 7 .7
19^6
197.9
19^7
1^ 9 .1 ;
8 5 .9 .
8i,3
IIU .5
130,9
126 .U
7.5
9.2
13.5 1 /
160.8
3 1 0 .8
462.6
1 7 ¿0
2U .1
3 2 .3
29 .o
I69 .I
253.9
259.0
I5 O .2
22 .2
2U .3
1^5*3
522.1
1 U3 .5
525*^
27.9
2U .9
15 8 .0 y
5.7
6 .2
2 7 .8
^ 7.3
U 7 .I
175*2
H97.5
551 .u
5 37.8
U76.3
39.9 u/
2 3 .g y
12 8 .2 y
3 0 5 .1 y
376 .3
338 .2
U 20.3
3 1 5 .2
525.8
Treasury Department, Division of Tax Research
Source*
Annual Reports of the Commissioner of Internal Revenue;
press releases of Bureau of Customs and Bureau of Internal
Bevenue, Accounts and Collections Unit.
1( A tax gallon for spirits of 100 proof or over is equivalent to
the proof gallon. For spirits of less than 100 proof the tax
gallon is equivalent to the wine gallon. On most domestic dis
tilled spirits the tax is paid on thè proof gallon. Most
distilled spirits imported are somewhat below 100 proof and the
tax is paid on the wine gallon.
'
2 f Represents original entry gallons.
3/ Estimated from sales of revenue stamps.
5/ Exclusive of unfinished and high-proof spirits for industrial
purposes.
¿/ Includes 31*5 million tax gallons»produced for industrial purposes.
1
was not affected by wartime restrictions, the, distilled spirits bottled
in the UiitVd States for beverage purposes consisted’ ofab'ou€ $5 percent
whisky, 1 0 „percept gin, and the balance chiefly of brandy, ..cordials and
liqueurs, and rum. (Table 2) In the same year whisky’comprised about70 percent of total distilled spirits imports, but the war in Europe
subsequently reduced the proportion. Hum is normally the next most
important type, of distilled spirits imported.. .
• All "distilled spirits must, be produced or imported under- bond^ to
"insure payment of the tax.' Some types are normally aged before they
are-withdrawn from Government bonded warehouses and bottled for sale.
Host whi'sky, ..brandy, and rum are aged in this, manner and on. certain types
the ageing period is prescribed by the Government, 1/ Gin customarily
is:nob aged before being withdrawn for consumption. This is also the
case'Vlth alcohol or neutral spirits-used in blended whisky. 2 /
.Because of.the varied character of the products, the supply of
domestic distilled spirits withdrawn for consumption is normally, dep
rived partly from current production"and partly from accumulated stocks.
The- supply of whisky,' in particular, over short, periods, of time depends
upon the size and age composition of stocks. However, as indicated by
the-wartirae’experience, the industry’has considerable flexibility in
the way in which given stocks may be utilized., In general, an increase
in. demand for whisky may be met by one or more,of the following types
of adjustment in the use of the available stocks: (l) reducing total
stocks,- (2 ) selling less, straight whisky and more blended whisky, (3 )
increasing the proportion^of neutral,spirits or alcohol used in spirit
blends, and (H) reducing the proof, or percentage of alcoholic content*
The increase in wartime demand for whisky, when only limited production
was permitted, was met principally by. reducing stocks and by using a
larger proportion of the withdrawals of whisky to make spirit blends, a
process commonly referred to as "stretching11 stocks. Stocks, of whisky
in bonded warehouses declined from. 517 million proof gallons on June. 30»
I9 U2 to 3^> million proof vgallons on June 30» 1945* (Table. 3 ) In 'the fiscal
year 19^7 about 90 percent of the whisky bottled in the United States, was
blended compared with about. 50 percent in/the fiscal year 19 ^-3 » the.
earliest yc.ar for which this information is available. (Table b) Except
if T6 ‘be
labeled as a " straight whisky" ’whisky must be aged, for not less
than two years; to qualify as "bottled in bond" distilled spirits
must bo aged for not less than four years,
. '. .
2/ Under the law whisky is distilled at not over l6o .proof, .alcohol or
neutral Spirits'at l6'0 proof or more. Temporary legislation permits
distilleries to produce spirits at l 60 proof or. more and remove, then
- without reducing then below led proof, (internal Revenue Code,
Sec. 282>3(c)(d) and (e).)
I
Table 2
Types of distilled spirits available
for consumption as beverages, 1941 l/
(Millions of gallons)
: Bottled domestically
Type 01 product
•
Amount
2/
«Percent dis-"•
-« tributi on
Total
Imported
Amount
'«Percent dis—
j tritution
(Proof gallons)
(Wine gallons)
Whi sky
Rum
Grin
Brandy
Cordials and liqueurs
Alcohol
Other spirits
*
119.5
1*4
13*3
2*0
3*8
.3
.2
85*1
1*0
9,5
1*4
2.7
*2
*1
140*5
100*0
i
10*3
3.6
.1
*3
*1
w
71,0
25.1
.4
2*2
.9
i
ài
.1
•4
14,5
100*0
Treasury Department, Division of Tax Research
Sources: Annual Repor t of the Commissioner‘of Internal Revenue for the
Fiscal Tear Bnded June 30« 1941. p. 163,and Department of
Commerce, Foreign Commerce and Navigation of the United States,
1941.
l] Domestic bottling for fiscal year, imports fer calendar year*
¡3/ Includes some imported products used in rectification or bottled
after withdrawal from customs custody*
3/ Less than 50,000 gallons*
4 / Less than *05 percent*
Note:
1
Tax-paid withdrawals of ethyl alcohol in the fiscal year 1941
were about 27*9 million gallons* About 22*8 million gallons were
used for rectifying purposes as components of the above beverages
bottled domestically. The remaining 5*1 million gallons were
presumably used in medicines, flavorings, and other products*
-1 -.
Table 3
Whisky:
Domestic production, tax-paid withdrawals, and stocks
on hand June 30r fiscal years 193^ "* 19^7
(In millions of tax gallons l/)
Piseal
year
Production
•
*
Tax-paid
wi thdrawals
1937
1932
6 2 .H
1 U9 .I
2 2 3 .7
223 0 •.
1 0 2 .9 '
1939'
X9 H0
19 H1
19 H2
19 U3
93*0
99,0 1
121.9
1 2 0 .3 .
19.5
7 2 .1
8 1 .3
8 0 .5
8H .7
S7-9
Hi <>6
1 U 7 .5
1 6 s. 0
5 8 .8
6 3 .9
6 3 .2
5 8 .8 :
i93^
1935
1936
.
•
]
19 HH
19^5
, 19 W
19 U 7
Stocks in internal
revenue bonded
warehouses at end
of fiscal year
' 18.9
57*7
1 5 2 .s
300,7' “
4 H5 .3
H 7 1 .2
5 0 .8
6 7 .3
7 2 .6
6 8 .6
U 7 8 .9
H 8O .9
50 H.I
5 1 6 .9
H2 H.S
-
3 H 8 .6
3 0 7 .6
37^.1
• •. 46U.8
Treasury Department, Division of Tax Research
Source:
1/
Annual Report of the Commissioner of Internal Revenue,
for the Fiscal Year JJnded' June 30. 1947.
A tax gallon for spirits pf 100 proof or over is equivalent
to the proof gallon.. Dor spirits of less than 100 proof
. the tax gallon is equivalent to the wine gallon.
- e,
Table
k
Amount of whisky bottled by types and amount
produced by rectification, fiscal years 1939—1947
(Millions of gallons)
Whisky used in and pro~
duced by rectification '
à!
: Whi sky
: Blended
;whisky as Whisky* Whisky »used as a
Bottled
Straightthlended: Total : percent
in
used 1produced* percent
:of whisky
'
of
bond
È
: i/
-produced
total 4/
Types of whisky bottled l/
*
iscal
year
•
' •
♦
:
•
:
:
(Proof gall ons)
(1fine gallons)
1939
1940
1941
1942
1943
6*3
13.6
13.5
13*4
16*6
5/
5/
1/
48.6
1944
1945
1946
1947
9.3
9,6
7,0
9*3
20.2
15.9
12.7
7.2
5/
5/
70*1
5/
5/
119.5
136.0
135.3
5,
g/
5/
51 «8
,13.6
15.3
17.0
20,7
29.0
66.9
117.7
144,1
149*7
96.4
143*2
163.8
166.2
69.4
82.2
88.0
90.1
32.1
40.8
45,8
43.7
§J
5j
u
•
33*6
38.0
44.3
56.0
60.8
40.3
40 3
38,4
36.9
47.8
57.9
101.6
124,7
130.7
55,5
40.2
36.7
33.4
c
Treasury Department, Division of Tax Research
Source:
Annual Reports of the Commissioner of Internal Revenue.
l/ Includes imported and domestic liquors* Includes products bottled for
exportation except in 1947»
2/ The difference between the amount used and' the amount produced represents
principally alcohol and high-proof spirits mixed with straight whisky to
produce blended whisky* Rectified whisky produced is included under
blended whisky bottled.
3/ Includes a small amount.of whisky aged less than two years which is not
eligible for labelling as «straight whisky".
4/ Includes blends of straight whisky*
5j Not available*
1
-
%-
during the fiscal years 19^+3 to 19 ^5 > when the supply of spirits avail
able for blending purposes was sharply, curtailed* the proportion of
whisky used.in blends decreased after 19 ^0 , 1/
.
2.
Concentration of supply
For about 15 years the distilling industry was prohibited from
operating for the purpose of producing beverage spirits'; After the
repeal of prohibition in 1933 facilities fdr the production and distri
bution of distilled spirits had to be almost completely re-established.
The re-established industry differs In certain important respects .from
that .which had devéïoped prior to prohibition, and has to .some extent
thé characteristics of a new indiistry, Prior to prohibition a very
high degree of concentration of. control had been .achieved at one time
in the production and sale of distilled spirits. 2J
Most of the present plants in the industry have been newly built,
re-built, or converted from industrial alcohol production. Prior to
prohibition most distilleries were small and the number had declined
steadily for a period of years. ¿/ In- 1916 there were 279 grain
distillerips operated, and. of these about two-thirds had a capacity of
less than- 2500 proof gallons per day. bj Since' the industry resumed
Operations, the number of grain distilleries has not exceeded 180, Only
about 15 percent of those now authorized to operate have a capacity of •
less than' 2500 proof gallons per day, and the-capacity of the 12 largest
distilleries is as large as the total amount produced in 1916. 5/
l/
Under the regulations, a "blended whisky" may contain not more
than SO percent neutral spirits, and 11spirit whisky"-not more
than 95 percent neutral spirits.. Uhl sky must be at least SO proof.
2y In 1899 it was reported that. The Distilling Company, of America, and
its subsidiaries controlled about 85 percent of the production of
neutral .spirits and,about..9.0 percent -of the standard brands of Kentucky whisky. The control of rye whisky production was sub
stantially lower ,at that time.. (House of Representatives, Preliminary
Report ,on Trusts and Industrial Combinaiions, 5 6 th Congress, 1st
Session; Doc. Ho . ~%76» Part I , p p . 8 5 ,SbTT
2./ Treasury Department, Bureau of Industrial Alcohol, Statistics
Concerning Intoxicating DiqUors, 1933» p. tyl In I9 OI there were
1,258 grain distilleries operated..
. •
■■•.
bf Annual Renort of the Commissioner of Internal Revenue, fiscal year
19167 p. 1 3 0 * Data are reported on the basis of grain capacity
and have been converted on the basis of 5 proof gallons per bushel
of grain.
a '
2/ Unpublished da.ta of the Bureau of Internal Revenue.
1
Although a number ofvpr&ducer-s entered the business following the
resumption of the legal sale of beyerage spirits, four companies have
assumed a leading position in the industry, l/ These companies began
operations with large amounts of capital which enabled them to estab
lish organizations for national distribution of their products. Some
of them also owned or acquired most of the important brand names which
had been used prior to prohibition. 2/ By 193& these four companies
accounted for more than half of the production of whisky and @f the
stocks of whisky held in bonded warehouses.
During the war the four
leading companies acquired additional distilleries or purchased some of
the stocks owned .by other companies and in September, 19^3 they held
nearly 60 percent of the total stocks of whisky. U/ This high proportion
of control of inventories placed these companies in a favorable position
to establish strong consumer preferences in.the postwar market, Bor the
fiscal year 19 ^-7 » the four companies accounted for 75 percent of the
domestic whisky bottled for consumption.
The industry has a producing capacity greatly in excess of con
sumption. 6/ However, in'view of the restrictions that have prevailed
on the production of beverage sjoirits during most of the time since
ISkz, capacity has not been as important a factor in the market position
of the companies as the stocks of whisky held. In 193& the estimated
capacity of all whisky distilleries w'as *+35 ■'million proof gallons. jJ
The largest amount produced in any year after repeal was 22*+ million
proof gallons in 1936 . (Table 3 ) The maximum tax-paid withdrawals
have been substantially smaller than this amount. Present producing
capacity appears to be approximately twice as large as the prewar level,
but the larger whisky distillers now produce a large proportion of their
high proof spirits for blending purposes, 8/
1/
2/
3/
5/
5/
6/
jJ
8/
Temporary National Economic Committee, Investigation of Concentration
of Economic Power, Part 6 , ’’Liquor Industry” .Ibid, p", 2U9 O
Ibid, pp. 2 6 78 ,26 20 .
U. S\ Senate, Hearings before a Subcommittee of the Committee on
the Judiciary,7^th Congress, 1st Session, p. 15$ • These companies
also acquired a substantial interest in the wine industry and
subsequently acquired some rum distilleries.
Unpublished data of the Bureau of Internal Revenue. The proportion
of whisky bottled by these companies is.higher than the proportion
of whisky produced. A higher proportion of their sales consists of
spirit blends compared with the balance of the industry.
Excess capacity appears to have been a characteristic of the
industry prior to prohibition. (Report on Trusts and Industrial
Combinations, .bp» cit., p, 81,')
Temporary National Economic Committee, op. cit., p. .2 6 7 7 *
Unpublished data of the Bureau of Internal Revenue.
' -'ll
-
In vio# of -the large producing capacity of the industry the,relative
position of different companies under unrestricted production -will- depend
to a large extent upon the distribution facilities and the merchandising
policies of the several companies.
Imports of the principal types of products are usually handled by
exclusive distributors. In some cases a domestic distiller,is the agent
fôr these products.- if
’
■:
3•
Competition and price policy,
':
Despite the relatively large importance of the tax-the. products
of the .industry are sold over a fairly wide prico range. Price
differentiation may arise from a number' of factors. In the ease of
whisky, differences in price may reflect differences .in the ago of the
product offered, whether it is a straight or blended whisky, the pro
portion of neutral spirits used in blended whisky, and the proof of the
product; in addition to these factors the réputation of the producer
or the popularity of the brand may bo important. 2/ There are, indi
cations that the industry1s pricing methods' place great stress on the
consumer1s preference for particular-types or characteristics of
products. ¡J Whisky is-, now sold in two fairly distinct price classes-,
the- older straight whiskies, and whisky blonds, hf 'Just prior to the
war younger straight whisky sold at prices competitive with the blended
products. G-in:, -an unaged product, usually sells at lower prices than
whisky. Some low-priced brands of run and brandy sell for. less than
gin, but most of the brands sell-at.prices comparable to whisky.
..
‘ • Distilled spirits are, generally sold under brand names. In some.
ca.ses the products of a. distiller will be sold under the private
brand of a distributor, but since tho repeal of prohibition, most sales
ha.vo been made under producer brands. Each of tho larger companies
if
TE3C, op. oxt,, p, 25S3 et ~ sen. '
2/ The discussion ‘refers to normal supply conditions.- in'unusual
scarcity or oversupply of one class of products would affectits relationship to the prices'of other products.
3/ Considerable attention was given to, this quostion in the T1TEC
Hearings in 1939» but from the'evidence the basis of pricing was
not-clear.
hj 'Straight- whisky; includes whisky of a-given season1s production
which may’ or may not be bottled-in-bond and also nixture-s of
the production of different years. The'.-latter nay not-be, labeled
bottled-in-bond and are usually referred to -as blonds .of straight
whiskies. Imported specialty'whiskies- such as Scotch, Irish or
Canadian usually sell at or above the prices of the older domestic
straight wh’
iskies.
-
12
-
has a number of brands covering different types of whiskies and dif
ferent price lines, and they also have popular brands of gin and certain
other distilled spirits. The relative emphasis placed on straight
whisky and blends differs considerably among companies. Both before
and during the war new brands were frequently introduced* The total
number of active brands, excluding private brands, is probably substan
tially in excess of 100, In one State store prices are listed for 7*+
brands of domestic whisky and 3*+ brands of imported whisky. (Table 5 )
Although there has been no.decrease in the number of brands carried in
these stores since 19 39 » it is possible that the total number of brands
for the country has decreased. It appears, however, that there has been
a marked increase in the concentration of sales in leading brands* It
has been stated that the five leading brands now account for nearly 5^
percent of total whisky sales compared with not more than 20 percent
prior to the war. 1J Increasing concentration of sales in a limited
number of brands,similar to that which has occurred in the cigarette
arid a number of other industries, has been predicted. 2/ Such a develop
ment is characteristic of decreasing price competition, but it is not
yet clear to what extent the change that has taken place represents
a definite trend and to what extent it is a. reflection of the wartime
shortages in supplies. The substantial Increases in advertising expendi
tures of leading companies from 193^ to 1,938 would indicate increasing
effort to> establish consumer preference. 3 /
The development of the price policy of the industry has been
affected by unusual conditions during most of the period since 1933*
Although no reliable price series is available, it is generally reported
that prices declined substantially as the industry accumulated an
adequate supply of aged whisky in the 19 30 ss. U/ There is evidence that
the decreases in prices during the latter part of the prewar period
were confined largely to bottled-in-bond products* (Table 5 ) Information
on certain leading brands indicates, however, that prices on established
brands were not changed very frequently. 3 / There is some evidence that
larger distillers gave specia.1 discounts from list prices prior to the
war when market conditions were unsettled. 6/ Smaller distillers probably
have to sell their products on a price basis where they are unable to
¡support a national system of distribution or intensive advertising.
Brice competition may also arise through the introduction of a. new brand.
if Journal
2/
3/
hJ
5/
6/
1
of Commerce. Fifteenth Annual Wine and Spirits Number,
November 21, 19^7$ pp* 2, 6. Both figures are presumably based
on sales data for monopoly States,
Ibid., p. 2«,
TN3C, op, cit., pp. 2717-2718* The advertising expenditures, which
are shown only for newspapers and national magazines, increased from
$ty*2 million in 193 ^ to $11*9 million in 1 9 3 8 .
l£id‘ Testimony of a number of witnesses,
iifoi.J»» P. 2696 . On most of these brands list prices were changed
only two or three times in a H-yea,r period I93 U-I9 3 S.
Business. Week, September 28, 19^0, p, U 5 .
Whisky "by types: Humber of brands and price range
in Virginia State stores 1937» 1939 sncl 19^+7 '
. (h/5 quart sizes, 90 -proof basis l/)
Type
ayawi!ip;<9e
mæs&m
•' Dumber of brands.
Price .range"
v
- *July l6 ,:Eeb. 1 ,
¿Dec. \,:July 1 6 ,M 9 37'Peb. 1 .
, 1 9 3 9 :Dec. 1 ,T p f
IQTtT t TQ7Q • 1 qli7 • li
• uuw •
Low : High :
Blended Whisky
Whisky- (less than
2 years old) ’
Bourbkm ■"
Eye •’
Corn
Straight whisky 2 /
Bourbon
Rye. !i
Corn ‘
Blends of straight
whisky 2 j
Bourbon
Rye
Bottled in bond
Bourbon
..
Rye
Scotch type
American whisky ■
Total domestic
Canadian.whisky
Scotch whisky
Irish whisky
Irish American
whi sky
Total'imported
12
5.
1
2
■Ik
10
1 ■
ho
3 )
1 )
0. .
U
:20
11
h ...
2
1 .0 5
.95
1 .0 0
7
. 1
i.ho
0
3
:6 •
3
6 )
3 )
r
3
5
5 ’
0.
0
1
73
jk
3 •
XT
3
29.
62
3.
Ik
$1 .9 5 : $ 1 .0 0
15 ■ •
1 .5 0
■ 11
2
2 .6 0
2*55
2 .6 0
2.60
1 .0 0 )
1 .0 0
1 .0 5
1 .0 5
5 .1 5
3-10'
h.6o
h.6o
... - ;
1 .0 5
2 .2 0
2 .3 0
1 .2 5
1 .5 0
2 .3 0
1*30 ) -Ij. 3_c
2 .2 5 ' 1 .5 0 > - 5
3 .6 0
2*35
2 .3 0
2.35
2 .2 5
2 .0 0
- l.
1.S5
1.75
h .35
5.35
h
5 *oo . .70
3 .9 0
y
3 .go
3*90
$
' 3 .ho
2 ■.
2 ;
1
1 ••- ;
0
i;h5
3k
$2 .7 5
1 .5 0
1 .7 0
1 .1 0
2
23
1.00
I.O 5
1 .00 '
’ .95
• .90 ; »^
$1 .0 5 $h.iQ
i.i5
1 .1 0
1 .0 5
3 .6 5
2*65
20
$1.90
.3 .0 0
•2,55
3 .^ 5
3 .so
2 .7 0
•î.hÿ
I .7 0
1 .7 0
2*75
* 2 .ho
2 .3 0
2 .6 0
k . 95
h .60
7*05 ; 4.80
h.g5
u .7 5
-
-
Treasury Department,: Division1 of Tax Research
Source: THEC, .Investigation of Concentration of Economic Power. Part 6, ,rLiquor
v
---- —j j j » *«m-***j-uo
,- r j j , cAiiu. iuuouuiic -coverage v.om>ro±
.
Board, Commonwealth of Virginia, List Bo. 113» effective December 1 , 19^-7
if' In ord6T;to- eliminate differences in price'due ?t’o differences in proof/ !the
sales ,prices for brands other than 90 proof were converted ’to a 90 proof basis,
or ne years 1937 and 1939- prices were usually, quoted on quart sizes and have
been reduced by 20 percent for comparability with present prices which are
commonly on tpe basis of- the h/5 quart bottle. All figures have been rounded
to the nearest 5 cents.,
¿J. Straight whisky is whisky that is at least 2 years old.
,2/ Includes three brands of bourbon whisky liqueurs, ranging from $2 .2 5 to $2 .3 5 .
However, in view of the apparent emphasis being placed on
brand preference, future changes in demand may result in less
price variation than in the paste
? Price policies at the wholesale and Petail level differ between
the so-called monopoly, and license States, '.In 17 States where the
sale of distilled spirits is conducted by the State, prices are
usually fixed on the basis of a uniform mark-up, i f Except for cutprice sales, the price to the consumer oh package sales among these
States varies.only by the amount of the mark-up and any tax that
.
may be imposed. ?J
'
In the license States there has been fen increasing effort to
secure resale price maintenance. Although some producers distribute
their products through exclusive wholesalers this is not the general
practice in the industry. Prior to the war some, wholesalers
apparently had engaged in cutting prices to retailers. 2/ Intensive
price wars were experienced at the retail level on several occasions but
they were generally concentrated in certain areas* particularly in the
large metropolitan centers. 4/ E^erience of distributors led both
wholesalers and retailers to join in efforts to 11stabilize** the industry
and to induce distillers to price their products under the Pair Trade
Acts. -In some States laws were passed requiring fair trade pricing, in
contrast to the usual type of law which permits producers to prescribe
resale prices,, and in some cases a ‘minimum and profitable retail mark-up
was required, \j The wartime increase in demand and subsequent, limita
tions on supplies tended to relieve the industry of the problem of resale
price, maintenance." , The effectiveness of the laws will not be known until
the industry has again 'buUfet up adequate supplies to meet the demand.
1/ One State has a monopoly at the wholesale but not at the retail
level,
2/ Under a provision known as the ’'Des Moines demand warranty11 the
purchase agreement of State monopolies apparently assures them
of the lowest price at which a distiller sells to any buyer. (U.S.
Senate, Hearings before a, Subcommittee of the Committee on the
Judiciary, op, cit.» p, 199; and TNEC, o p , cit., p. 2572 et, seq.)
3/ Report of the Eederal Trade Commission on Resale Price Maintenance,
p. 370.
h/ The two most extreme price wars occurred in 1935-36 end in 19 ^-0 .
Two-year-old whisky first became freely available in 1 9 3 5 -3 6
while 1940 represented a four-year-age for the very large produc
tion of 1936. 'These two ages are those when whisky can be used
"for straight whisky and bottled-in-bond, respectively.'
2 / Eederal Trade Commission, o p . cit,, p. #7*
- 15 -
Cosfrs and prices
Producer costs; of distilled spirits are fairly uniform, except
for differences in ageing or special processing that may be involved.
In general there are not large differences in distilling and bottling
costs for a given class of product. The cost of distilling depends
largely upon the raw material used. G-rain is the principal raw
material for the production of whisky and gin p brandy i s produced
from Various fruits.and rum is produced from molasses. In 1939 the
cost of materials represented about one-*,third of the value of products
at the distillery, and salaries and wages about; 12 percent, l/ The
average value of whisky per proof gallon at the still was about 50 cents
compared with oO cents in 1937* Packaging costs, x-diich include bot tling,
labeling and casing, are not reported by the Census. Prior to the
war these costs were estimated to amount to UO cents per gallon or'
nearly as much as the coet of distilling. 2/
Ageing may result in substantial differences in producers’ costs
for different brands of whisky. The difference in cost depends upon
the way in which the distilled product is aged, the length of the
ageing period and the proportion of aged whisky used in the product
bottled for sale. If whiskies of different year*s production are
mixed or whisky is blended with neutral spirits, the product is subject
to a rectification tax of 3^ cents per proof gallon in addition to the
cost of rectification. The principal costs involved in ageing whisky
are the cost of the barrel or cooperage in which it is stored, storage
charges, insurance, interest, and property taxes. These costs are not
reported by the census and considerable variation is found in estimates,
but before the war they probably amounted to at least JO to bo cents per
proof gallon for a U-year period.^/ln addition to the outlay required,
an important factor in ageing costs is the loss which occurs through
leakage and evaporation. The loss varies depending upon storage
conditions but usually is relatively heaviest in the first year and
probably averages about 20 percent on U—year ageing. U/ Through this
U
department of Commerce, Census of Manufactures, 1 9 3 9 i Vol. II,
Part I. Salaries and wages are those for manufacturing; total
salaries and wages amounted to about 15 percent of the value
of the product.
2/ Analyst, February 8, 1939, p. 22?, The cost estimate included
overhead and was given on a bottle basis. It is assumed that the
estimate was made for quart bottles.
2./
o p . cit., pp. 2 ^-8 3 ,2 5 1 7 * The cost of a barrel was reported
be $5~$7, which would amount to 10 cents or more per proof
gallon. Ageing costs were indicated to be 5 cents per go,lion
per year on original entry gouge.
hJ
1
maximum statutory allowance for this period is 11 proof gallons
per barrel which contains about JO proof gallons. (Internal Bovenue
Code, Section 2901.)
~
~
- i6 -
loss *the’cost of distilling and storing is increased b y f2 5 'percent*
Before the war the total cost 'of a proof gallon of whisky-aged four
years.^wds probably at least 2- 1 /2 times as much as the cost of dis
tilling a proof gallon. The difference would be relatively smaller'
after the addition Of tax and bottling costs because these are
practically the same for aged and unaged whisky-.
The prices of distilled spirits that can be utilized for
consumption without ageing would normally bear a close relationship
to costs of production, but the price of aged liquors may differ
substantially from the cost, at which they were produced several
years previously. For several years, following repeal* the price
of aged whisky was high in relation to the current cost of produc
tion and ageing, but as aged stocks reached a relatively high level
the price structure weakened and profits declined. The price-cost
relationship has widened since the imposition of restrictions on
production in 19 U 8 . However, present costs are very much higher than
the/prewar level*
. '~
.
B,
Character of demand
Habits and social attitudes apoear to be important factors .
determining the demand for distilled spirits. There may be a certain
amount of substitution between distilled spirits and other„alcoholic
beverages based upon price considerations, but the type of satisfac-.
tion obtained from the different forms of alcoholic beverages suggests .
that it is rather limited* "Distilled spirits also provide satisfac
tion essentially different from that supplied by non-alcoholic
beverages* such as soft drinks. Income and price changes probably
have an important bearing on the consumption of distilled spirits,
but it is difficult, to determine their effect.
for most of the past generation the demand for distilled spiritshas been affected by extreme changes in the Xegalization of sale and
by- war-induced abnormalities* for approximately 5 ^ years prion.to
prohibition the total consumption of distilled spirits had increased
but the increase appears to have been very largely a reflection of popula
tion growth. Comparison of per capita consumption for different periods
of time is affected by changes in the proportion pf the population living
in jurisdictions where the sale of distilled spirits' has been legal*
These proportions changed substantially iii the years immediately pre
ceding prohibition but there appears to have been no significant change
1
- IT in recent years* 1J Since repeal consumption has increase^ almost Con
tinuously from year to year, and *the increases exceeded the growth in popula
tion** Some of the growth in the 1930 ^s can prohahly he attributed to the
readjustment of consumers to the legalization of beverage sales* To some
consumers distilled spirits- represented a new product* A large part of the
increase is probably also attributable to the rise in the level' of national
income* In the years 193^*19^1 the fluctuations in the consumption of
distilled spirits,were smaller than the fluctuations in disposable income* 2/
Evidence regarding the effect of price changes oh the consumption of
distilled spirits is limited. Adequate data on retail price changes are
not available and since about 19^2 consumption has been »affected to some
extent by limitations .on supply. Most of the evidence appears to support
the conclusion that within fairly wide limits a price change has less than
a proportionate effect on the unit volume of sales. ¿/ The price reduc
tions in the late 19 3 0 *3 » which In some cases were accompanied by price
wars, did not, seem to result in increases in consumption proportionate
to the decrease in prices* h/ Although» as indicated above/demand and
l/ Annual Reports of the Distilled Spirits Institute. A slight decrease
since 19 Ul is indicated in the proportion of the population living
in Hwet^ areas.
2/ Based on Department of Commerce data on disposable income* Disposable
income is, the series used prior to the revision published in the
'
... Survey of Current Business for July 19V?*
3/ In the testimony given before the Temporary Rational Economic Committee
one industry representative seemed to take the position that consumer
purchases of whisky were largely independent of price. (Bart 6 ,
’‘liquor .Industry,n p. 2519 »)
r':
tv
U/ There was a very drastic price war in New York City in the summer
of 19h0. As the population of the City is over 50 percent of the
total for the State, any increase in consumer- purchases because of
the lower prices should have-been-reflected in State- liquor tax
receipts* An examination of these figures shows that there was an
increase in wholesale (and presumably retail) purchases during the
price war* However, after prices were stabilized there was such a \
large decrease that the total for the year was no higher than would'
have been expected if there-had been no price war* Apparently,
consumers added to their inventories during.the price war with the
result that their total 'expenditures for. the year were less' than they
would-have been in the absence of price reductions* The Inference
that lower prices did not affect demand is not conclusive, however,
because the price changes were not effective for a long enough period
to produce a change in habitual consumption patterns*
- IS ■supply‘condltions have been abnormal for most of the war and
postwar period, increases in .the rate of tax and in prices
exclusive o f .tax have “been accompanied by a large increase in
estimated consumer expenditures for distilled spirits. The
increase in estimated expenditures has been relatively much
larger than the increase in the level of income. For 1946
estimated consumer expenditures for distilled spirits amounted
to 3 .5 percent of disposable.income compared with 2.2 percent
in 1939» (Table 6) The increase in the.ratio softer 194l may
have been due in part to the shortages of other consumer goods.
Consumer expenditures for distilled spirits in 1947 wore
appreciably below the 1946 level, but the ratio to disposable .
income is still much higher than in the prewar years.
C.
Outlook for the industry
.
.
;•
,r
.9
Indicated consumption of distilled spirits in 1947 was
substantially below the 1946 level. Tax-paid withdrawals de
creased by 19 percent. Some of the decline In tax-paid with
drawals, however, appears to have resulted from dealers1 efforts..
to reduce inventories. Sa3.cs. to consumers in monopoly States
declined only about 8 percent jwbilo sales by wholesalers in
license States, as in&ica.ted by tax collections, declined by 27 ,.
percent.l/since incomes were higher in 1947, the decrease was
•
greater in relation to the level of income. The decline may have
been due in part to the fact that in 19^7 consumers bought more
durable goods and had to pay higher prices for goods and services in general. Under more normal consumption patterns, purchases
of distilled spirits, as in the past, are likely to rise and fall
with changes in the level of income. Past experience does not
indicate, however, whether there will be a significant long-term
growth in consumption.
As consumption declined in 1947, stocks of whisky increased
until production ceased under the grain-saving program. The
supply of well-aged stocks, of course, has continued to decline
because there was no significant production between I9 U2 and
I9 H5 . Stocks more than 4 years old amounted to 125 million
proof gallons on June 30, 1947* a decrease of about 50 million
galionss from June 3^» 19^6.. (Table 7) The June 30» 19^7 stocks
of 4-year old whisky were at about the level of June 30* 19^2.
However, they will continue to. decline until 19^9 when the
whisky produced in 19,45 becomes 4 years old. The age distribution
of whisky stocks apparently will be abnormal for some time in
the future.
l/ Distilled
Spirits Institute, Statistical Reports.
Disposable income, tax-paid withdrawals of distilled spirits
and consumer expenditures for distilled spirits, 19 35 **1946
Tax-paid
Consumer expend!tures
Disposable
for distilled spirits 2 /
withdrawals
income 1 /
Percent
Amount • Percent
Calendar
Amount rPercent: Per proo
(Millions; change
Amount : change
year
:of dis-: gallon
(millions)
of proof: from
(billions): from
tax-paid
;pcsabio:
preceding gallons) preceding
:
income;
: year
year
1935
1936
$ 56.3
6 5 .2
1 5 .S
1937
193s
6 9 ,2
62.9
- 9.1
1939
1940
6 7 .7
7 2 .9
7*6
7*7
l$kl
6 .1
1o
97*9
129.6
1 3 4 .4
1 2 3 .0
1 3 2 .1
l4l.5 .
19 42
68.7
110.6 '
2 1 .7
24.7
1 5 5 .6
1 6 1 .6
19 U3
19 HU
12.4.6
1 3 7 .4
12.7
1 0 .3
1 3 5 .5
1 5 7 .7
19 U5
1946
139,7
l46.0
1.7
4*5
1 7 7 .7
2 1 5 .6
- ,
32*6 i
$
996
fy
$ 10.17
IO.O5
1,304
2 .0
1,469
1 .3 9 6
2.1
2*2
10*93
11.17
1 ,5 1 1
1 ,6 7 5
2.2
2.3 '
11.44
11.64
1 ,9 7 9
2 ,5 3 3
2.2
2.4
1 2 .7 2
1 6 .6 0
-1 6 .2
3 ,2 0 2
1 6 .4
3,845
2.6
2.8
24.36
3 01
3*5
2 U .7 6
2 3 -^ 7
3 ,5
- 7 .0
5*7
7*1
1 0 .0
. 3 .9
1 2 .7
- 2 1 .3
4, 4oo
5 ,0 6 0 •
2 3 ,6 3
Treasury Department, Division of Tax Pvesearch
Source:
Department of Commerce, press release of April 30, 1947 and ■Survey
of Current Busi ness, May IQ42, Apri1 1944, ~ Feb ruar%- 1946 and
February 1947- Disposable income and consumer expenditures are
from the series published prior to the revision-given in Supplement
to Survey of Current Business, July 1947«. Tax-paid withdrawals:
Annual Reports of th b Commissioner of Internal Reve nue.
1 / Disposable income represents income parents less persona,! taxes*
2/ Includes expenditures for drinks at bars and restaurants as well as
package purchases.
3/ Computed on rounded figures.
1
.
.
Table 7
Stocks of whisky in internal revenue bonded warehouses
as of «lune 30» I9H6 arid. Ï.9H7
‘
(In millions of tax gallons l/5
Year :
of
:
production:
.1938
Season
:
Fall
1939
I9HO
XOUl
19'42
.«
*
Spring
Fall
19H6
:
—
1,6
5 .8
-
.9
—
-
3*8
'
n
7 »H
12*5
3.7
Spring
Fall
13.2
21.0
Spr trig
Fall ;
Ho. 3
U7.9
2H*2
16.1
3 2 .2
15*7
Spring
Fall
H6.6
37 -5
1 7 .5
1H.3
s .5
■ ■■
_
9 .1
3 .2
12.3
—
.7
2H.9
6O.3
-
*7
_
+
3 9 .5 '
in.
19HU
Spring
Fall
13.0 -
Spring
Fall
25.3
70.0
Spring
Fall
69*2
-
19U7
19 H 7
v
Increase (4*) .
or decrease (-)
.from 19H6 to I9H7
:. r-
3 *8 '
5 .3
Spring
Fall
19^6
:
♦9
19U3
: 19U5
*
I
Stocks 2/
1 £. -
Spring
-
6g.g
59-5
.H
»H
106.0
• 4* 106.0
Total
37H.1
H6H.g
4* 9 0 .7
k M s k y over
H years old
179 oO
12U.1
5H.9
•
Treasury Department, Division of Tax Research
Source!
Bureau of Internal Revenue, Alcohol Tax Unit, press
release of October 21r I9H 7 .
1/ A tax gallon for spirits of 100 proof or over is equivalent to
the proof gallon. For spirits of less than 100 proof the tax
gallon is equivalent-to the wine gallon.
2j Excludes a- small amount produced in 1921 and prior years»
Represents original entry gallons; losses not determined until
withdrawal.
-a
Production of whisky in the first 6 months of I9 U 7 amounted to
107 million proof gallons, or at an annual rate nearly as high as the
peak prewar year of production. ‘Total stocks on June 30» 1 9 % had
risen to H65 million proof gallons or within 50 million gallons of
the prewar peak. Subsequent to June 3 0 , production was at a rela
tively low level until October, the last month preceding the adoption
of the grain-saving program. With present capacity and unlimited
use of grain, distillers probably could produce in a few months as
much whisky as they.would.desire to add to stocks in one season.
However, high grain prices would have tended to limit production o f
whisky in the absence of grain restrictions. 1 J
After supplies of aged whisky have been built up under unlimited
production, competition in the industry is likely to be intensive,.
Storage costs tend .to force aged stocks on to the market when adequate
production is in prospect. Continued improvement in the supply
situation would bring prices more nearly in line with costs and might
result in a period of price weakness and instability. A continuation
of the concentration of sod os in leading brands, however, would tend
to reduce the extent of price competition at the distiller level.
Price cutting at the wholesale end retail levels might again become
serious unloss pricing under fair trade laws prevented it.
V , Effects of the tax
A,
On profits
All branches of the distilled spirits industry became increasing
ly profitable during the war. In 19 % net income after taxes of
distillers, rectifiers and blenders filing corporation tax returns
increased by 230 percent over .1 9 3 9 *
(Table 2!) Beginning-with 19 %
distillers1 profits reflect .the production of spirits for war purposes
This continued through August 19% . Profits of distillers reporting
to the Securities and Exchange Commission in 19 % exceeded those for
the war years. Total not profits before income taxes were nearly 10
times as high as in 1939* (Table 9 ) Het profits after income taxes
were 39*5 percent of net worth compared with the prewar high of IS.9
percent in 1937. Liquor wholesalers and retail package stores filing
corporation tax returns showed relatively.larger increases in profits
than distillers from 1939 to 19 % .
(Table S)
Wartime controls tended to minimize the effect of the excise
tax increases on the profits of the industry. After the pro
duction of beverage spirits was stopped in 19 % > supplies remained
1/ In the latter part of 1 9 % corn and rye prices both'rose to more
than five times the 1939 level, -(Department of Labor, Wholesale
Prices; Decomber and- Yean 1939 . and-,fAverage Wholesale Prices and
Index lumbers of Individual, Commodities,11 October i914-T-)
-
22
-
Table 8
Humber of ^corporation income tax returns,- receipts and ne.t income
of distillers c
ahd distributors of distilled spirits, 1932-19^5
(Money figures in millions)
‘
Year
I9 3 S
1939
I9 I+O
191+1
I9 I+2
191+3
191+1+
19^5
; Returns with net income
]
Returns with no net income
: Humber : Total .:
: Humber.' :
Total :
f Ret income
:
of
: compiled
of
: compiled : Deficit
\ after tax if] returns':
: returns : receipts
receipts :
106
9 I+
123
152
167
157
157
11+7 ,
Distillers, rectifiers and blenders
$ 2 0 .3
208
$ 3 5 1 .6
$ 1+*1+
$ 7 ^ .5
I5 I+
3 I+6 .S
18.2
5.°
8 5 .5 .
1+2 1 .6
2 3 .6
ll6
i+.o
7 5 .O.
659 .S
2 9 .0
69
2 2 .3
.8
S7 U .6
3 6 ,8
6l
1 5 .2
1 .1+
31+.2
1+1
18.8.
1 ,0 7 6 .3
.7
3 6 .I+
1 .1
1 ,2 7 1 .3
33.5
3S
1+6 .8
60 .
6 3 .^1+
1,755.9
3 .1
Wholesalers
193S
1939
19 I+0
191+1
191+2
19^3
191+1+
19 I+5
2/
2/
79k
90 S
979
1 ,011+
932
956
Zl,
2/
7 9 6 .1
1 ,1 3 1 .0
1 ,501+.2
1 ,5 9 2 .3
2 ,09 2.2
2 ?I+9 O.I+
2/
if
1 3 .6
2 0 .0
¿Jj;l
3 3 .s
1+1 .8
I+5 .O
2/
2/
5^7
1+17
296
153
I65
238
2/
2/
10& 3
85*9
57.1+
2 2 .3
39*6
92.7
2/
2/
3T0
1 .6
1 .1+
.7
*7
3.5-
H1 .2
.I+0 .3 .
i+l.l
32,3
l.l
Retail package liquor stores
19 3 s
1939
19 1+0
191+1
191+2
19^3
191+1+
191+5
: 5^7
65I+
733
•
• 900
i1,171
l,l+Sl+1 ^1+16
1,1+89
"
37.2 ,
1+5.0
5 6 .3
7 5 .I
1 1 6 ,3
16 O.I
I6 S .3
1 9 7 ,6
-.5
.7
.8
1 .2
2*0 •
1+..5
1+.6
.. . 5.5 .
1 ,0 7 0
1,008
970
882
63 U .
298
275
238
3 2 .3
1 3 .1+
1 5 .6
1 6 ,2
1 .0
>9
.9
#6
.3
<3
,1+
Treasury Department, Division of Tax Research
Source:
Statistics of. Income,,.Part 2 .
1/ liât :
Income
2/
1
after’'corporate.on income, exco ss' profit s and dccl ared
value excess profits 'taxes. "
Rot available.
23 «
f
T a b le 9
Net profits and rate of return on net worth .of distillers,
reporting to Securities and Exchange- Commission, 1936-3*9Ùb l/
,
Ï
Net p r o f i t s as a
.. . . : p ercen t of n et worth 2/*
i*
B e fo re
j
A ft e r
:
B efo re
*
'A fte r
income ta x e s : income taxes : .income /taxes: income taxes
:
(M illio n s )
'
r
Net p r o f i t s
I0 ar
1936
1937
X93S:
1939 - '
19U0 3/'
19 Ui
$ 32-3
' 3 3 .6
3 1.2
2 8 .H
32/3
UU.S
19U2 k f
19 U3 v
19 ^ -'
19^5
19U6-,
73.5
113,7
155.8
220.9
288.1
.
-.
$ 26.5
3 1.0 ••
2 ^ .7
22,9
2^.6
.30.7
33.9
39.^
M
X
6 k . 7.
iHs.H
'
2 1.6 $ '
23.5
‘ I5 .5
.13^3
15 .3
;*
19 a
y / 'f
;...
29.5
m ,o
56. k
6 7 .H
; 76.7
'17 .3 f
13,9
12 .3 r
1 0 .7
11. ^ .
13.1
1 3 .6 .
1 5 .2 :
1 6 .3 r’
1 9 .7
39 r5
/'.Treasury department, Division of Tax He sear eh
Source:' .Securities, and Exchange Cornnissfon, Survey of American A
‘ ,Listed Corporations/ ’’Data on Profits and Operations,”
7 Part I. .
^' :
''1
y
r
.
,
*
1/ Companies included for the whole period are: The American Dis*tilling Company, Distillers Corporation - Seagrams Limited,
Mohawk'Liqueur Corporation, National Distillers Products
Corporation, Old Poindexter.Distillery,-Incorporated, Schenley
Distillers Corporation and Hiram Walker - G-ooderham & Wort's •
Limited. Por ..the years 193 7 -19^6 : Bro.wn-Porman Distillers Corporation
and.Merchants Distilling Corporation. . Por 19^-2-19^3 t- Tom Mob're
Distillery Company, Por 1-9^5-19^6* Philip Blum and .Company, .
Inco.rporated, Olcnmore Distilleries Company, Logahspo.rt Distilling
Company, Incorporated, and-Park and Til-ford, Incorporated.
2./ ^°t worth as of the beginning of year. Includes preferred and
common Stock and surplus. '•
y
y
;.
3/ Two registrants’ statements were' for eight-months’ interim period.
Hot worth ratios adjusted to a full year,
> :
b[ One registrant’-s statement for a nine-months’ interim period. • Wet
worth ratios adjusted to’a full year.
short despite the additional production allowed for ,limited periods, in
19hU and 19-45* Although "it appears that the price ceilings imposed
were not fully effective* the extensive Tblack market” sales indicate
that the ceilings did" limit price increases on iegal eàles.'l/ The
increases1 in tax,'which were reflected in ceiling prices, undoubtedly
held down consumption to some extent and thus were probably effective
in limiting the scope Of thé black market#
•The present Federal tax represents approximately 5 ^ percent of
the retail price o'f-thè-most popular brands of distilled, spirits# 2/
It is somewhat *lowèr in relation to the higherpriced products# As •
indicated in Section IT above, there is insufficient evidence to . ;
determine the extent to which the tax may reduce consumption. Condi
tions in the industry do not yet reflect a normal demand-supply
relationship and the shortage of aged whisky stocks has prevented
the industry from experiencing strong pressure on .prices* After the
termination, of price ceilings, prices were increased somewhat,- but
later declined as production rose*
Thus -far in the postwar period the industry appears, to haye
avoided'over-production* Moreover, with the,continued high, level,
of income dealers have been able to dispose of.slow-mpving stocks
accumulated during the war. Under these conditions, profits may
continue at a high level with th’
e existing tax rate. However,. a ^
large increase in stocks or a substantial decline in the level of
. ¡income would tend to stimulate price competition. With such a
development the present rate of tax might have a substantial adverse
effect on the profits of the industry* However, 'the postwar pattern
-Of competition and price policy of the industry has not yet been
clearly established, and until these factors are more fully known
it is difficult to reach a conclusion on the probable effects of the
tax on profits.
. /
On business costs and competition
> .
•
Taxable, distilled spirits do not enter into the cost of other
products to a very substantial extent* The principal business use is
in the manufacture of high grade perfumes and certain food and medicinal
l/ United States Senate, Hearings before a Subcommittee of the
Cp.mmitt.ee on the Judiciaryr JSth Congress,. 1st Session, Part 2 , pp,
Wl-493* Prior to ,the issuance of Maximum Price Regulation No.* 41+5,
effective August l4, 1943» higher ceiling prices were obtained by
introducing new brands# (Part 2 , pp. U 26-U 3 9 .)
2/ The ratio will differ with the amount of taxes imposed by State
and local governments»,, or the amount of.‘the mark-up made by’ State
monopolies. For information on State taxes, see Treasury Department
study uFederalist ate Tax Coordination ,.w July
25- -
products, .The tax on the distilled.. ^ir^triised.for
murpo-ses
.provides fbr a.'draylsack of .$6 ..per proof gallon. ‘The ’ne.t tax of $3„,
per;proof i$allhn-probably is not ,aai. important i'actor. ,in the competitive
• position, of the products made, frogi tax-paid dipiilled ,spirits. .... ■.
The tax on distilled spirits Is higher in' relation to .the -price
of the product than’the taxes on fermented malt liquors and winesAlthough the latter afford a closely, allied form of consumer satis,faction, it is doubtful whether the present differences in tax-are
sufficient to cause an appreciable amount of substitution of the
lower taxed products for distilled spirits. It would .appear: that ;jsocial'-considerations affecting the choice of ado oho lie liquors are
so strong that a much larger tax differential 'WOuld.be necessary to
* produce a substantial change in consumption habits.
V;- a .ayysyx
l The flat specific tax on distilled spirits tends to give more •
expensive products a competitive advantage. !_/ Jbr example, although
at the distiller level one product may sell at half the price of
another before tax, the addition of tax plus wholesale and retail
mark-ups on cost including tax would raise the, price of the cheaper
product at the retail level to approximately 75 percent of the,,moreexpensive product. This tends; to affect adversely distillers con-centrating on low priced lines. The amount of tax. may be reduced by
lowering the proof of the product within certain limits, but-this
process increases bottling, packaging and distribution costs in. relation
to the price of the product per .un.it of proof. There is no clear-^ut
division in the industry between producers ,of .the lower and higher •
priced products but some firms'do tend, to concentrate on either/p lends
or straight i'diisky products.’'
B y increasing the capital requirements of wholesalers and retailers
the tax tends to limit competition at these levels. However, the State
or local restrictions imposed ,on the number o f .liquor.licensees may be
a much more important factor-. .Uhoro those 'restrictions effectively,
limit- the. number of outlets, the additional capital requirement re
sulting from the tax is not likely,to be an important factor in reducing
•competition.’
..
\
• 0.
On consumers
.....
.
Reported data on consumer expenditures for distilled spirits in
relation to size of consumor- income do not'appear ,to.be .'sufficiently
complete to afford a reliable indication, .of theadistributlon-of the
1/ An official of one of the largest;
-outthat 65 percent, of •the whisky sales hregf n,•the t'bp>price brackets.
Under the' preseht, tax rate,' the
bqtwdQh'advertised
brands and' lower-priced
according to
ifthis official." (Journal of ComjtewJ^fFbw York, September 11, 19^-7 •)
-
?6
-
tax burdeïU 1/ However, consumers purchasing the higher-priced
products tend to pay less tax in relation to their expenditures
hecause the tax varies only with the quantity, purchased. ., The-upper
incomé groups probably purchase relatively more, of the higher-priced
packaged goods and distilled spirits sold by the drink. This,
would tend to make the tax regressive.
>
Distilled spirits are not included in the Consumers1 Price
Index of thé Bureau of labor Statistics.
Before the war, the consumption of distilled spirits fluctuated
less than disposable income. Compared with prewar levels consumption
has risen' less than half as much as disposable income. Prom this
experience it is not possible to determine what the relationship
will be under more normal conditions. Hoi^ever, it appears that the
tax would generally have the effect of withdrawing relatively more
purchasing power from the income stream in periods of low business
activity than in periods of high business activity.
VI.
Administration and compliance
Because of the ease with which distilled spirits can be produced
and the high value of the product in relation to its bulk, the law
provides for close supervision over the production and distribution
of the product in order to assure payment of the proper tax* 2/ The
detailed records and reports required of distillers and others and
the personnel engaged in the supervision of operations involve
substantial costs for the industry and the Government. Part of
this cost relates to the production and use of industrial, alcohol,
which is not subject to tax. In addition to the administrative
cost of supervising operations in authorised plants, the Government
normally has a large enforcement personnel engaged in suppressing
- illicit production and distribution of distilled spirits. This work
is conducted in close cooperation with State enforcement agencies.
The total cost of collection and enforcement of the Federal taxes on
all alcoholic beverages is less than one percent of the revenue from
this source. However, a relatively higher proportion of the enforce
ment cost is attributable to suppression of the' illicit traffic
in distilled spirits than in other alcoholic beverages.
1
1/ The data collected in Family Spending and Saving in Wartime
(department of Labor, Bulletin Ho. 822, 19 *+5 , p. 7 g) indicate
that consumers understated their expenditures for distilled
spirits by perhaps as much as two-thirds. Expenditures of income
groups under $ 5 ,0 0 0 , -as reported, rose proportionately as the
size of family income increased.
2/ The Federal Alcohol Administration Act requires all producers
(other than brewers), importers and wholesale distributors of
alcoholic beverages to secure basic permits. The number of such
permits outstanding on June 30» 19^6 was 1 6 ,09 ^. (Annual Report
of the Commissioner of Internal Revenue, fiscal year ended
June 3 0 , 19 ^6 , p, UU.)
-
27 -
Wien the rate of tax on distilled spirits was.’increased during'the
war it was 'believed that wartime limitations •on the: use of materials
required for illicit operations,î’
/ould prevent an expansion of .. ,
”bootlegging” . Experience has shown that such operations were confined
to a relatively low level during and since the war. .Sugar rationing
was an important factor confronting illicit operators "because- it. afforded
enforcement officers a close check on sugar users. Government controls
over industrial use. and inventories of sugar, which were continued
after consumer rationing ended, were terminated effective. October
I9 4 7 . Since that time the Bureau of Internal Revenue-has been confronted
with an increase in the use of sugar in illicit distilling, but it is
not yet clear how extensive this-will become. Bor checking the use of
this material, the Bureau has reinstated its ova program authorised by
the law and which was in effect prior to sugar rationing, if However,
this program is much more restricted in scope than the controls in
force under sugar rationing.
Another facto.r .that appears to have a significant effect on illicit
operations is thé level of income and employment, The high-employment
level of income which has' prevailed for a number of years has tended to
curtail evasion of the tax on distilled spirits. Unemployment tends to
stimulate such activities through the willingness and low cost at
which labor can be obtained for such purposes. At the •same time the
reduced income of consumers causes them to seek a lower p-ricod product
and thus furnish an expanded market for illicit production. v ’ /
There is no way of dote mining the extent-to which illicit oper
ations would bo carried on under different rates of tax. Between 193^
and 19^0 there was little change in the rate. During this period
considerable progress wa.s made in dispersing organized'operations which
had developed during prohibition. These efforts reduced illicit pro
duction in northern States to relatively low levels, but-the suppression
of smaller scale operations in thé South proved to be more difficult.
The increase in tax of $ .7 5 per proof gallon in 19^0 resulted in some
increase in illicit activities which was largely offset by intensified
enforcement efforts. Subsequent increases in ra.tes were followed by
large increases in employment and wartime restrictions. Thé future
level of illicit operations will depond to a substantial extent on
how favorable factors other than the rate of tax may be. Under conditions
which prevailed during the1years just before-the war- the present rate
would, probably stimulante a. Considerable increa.se in' thé production and
purchase'of'uniaxed spirits, intensified enforcement efforts could
offset this to a substantial degree but probably not fully without some
reduction in the tax rate.
•
if
1
Regulation s -,N o . 1 7.
- 28
While tax reduction would he likely to curtail illicit produc
tion, it would not necessarily result in increased re Tenue© Com
plete éliminât ion :of present, illicit.product ion prohahly would
offsetoiily 'a trelatively small reduction'in the present rate of tax»The level of'the- tax.rate, however, is not only a question of
revenue considérâtions# Widespread liquor law violations would have
undesirable soci al-affects* ■ . ; m '~J
Til.
Technical problems-
1
-
The principal technical problems that arise under this tax are:
1*
2*
A©
Whether floor stocks taxes should be imposed or
refunds made on floor stocks if the tax rate is
changed©
;
Whether the present provision for a drawback on
distilled spirits used in non-beverage products
should be modified#
ffloor stocks taxes and refunds
/
Increases in the rate, of tax on distilled spirits beginning with
the Revenue Act of October 3 » 1^17 have been accompanied by taxes on
floor stocks# Since the product is not highly perishable such taxes
appear to be necessary, because there would otherwise be a strong ten
dency to accumulate tax—paid inventories at the lower rate. 1J In
view of the large stocks normally carried in bond during the ageing
-process, producers and dealers would have an opportunity to build up
tax-paid inventories to such an extent that .the increased tax rate
might be applicable tc only a small portion of sales to consumers for
a considerable period of time# The necessity for financing payment
of, the. tax would be the principal deterrent to such-accumulations.
In addition to defeating the objective of the Government in raising
the tax, failure to levy a floor stocks tax would benefit those w h o .
have the resources to talee advantage of the opportunity.
There has been ¿o experience with a reduction in the tax rate on
distilled spirits since I869 , except during the period when the sale
of distilled spirits for beverage purposes was prohibited. 2/ In
1/ According
to the report of the.Industrial Commission in 1900 taxpaid Withdrawals•of spirits in anticipation of the increase in tax
of 20 cents per proof gallon.in 189 ^ were equal to two or three
years 1 supply/ (House of Representatives, Preliminary Report on
Trusts and Industrial Combinations, supra, Part I, p. 91 and
Part II, p 0 PM7 # )
.
2/ Refunds were granted on certain stocks withdrawn at the beverage
tax rate prior to July 1 , 1919» the effective date of wartime,
prohibition. (House Renort Ho. 112 U to accompany H. îw IO528 ,
68 th Congress, 2nd Session.)
- 29 -
connection with the provision for reduction in the War Tax Rate from
$9 to $6 per proof gallon the Congress, in the Revenue Act of 19^5,
provided for refunds on floor stocks subject to certain conditions c l /
Reduction in the tax by any other amount would presumably raise the
question of whether this provision should be amended.
The possibility that the industry would experience substantial
losses in the case of a tax reduction without provision for refund
would depend upon the amount of the tax reduction, the level of taxpaid stocks in relation to sales and the conditions of demand and supply
at the time of the reduction, A relatively small reduction without
provision for refunds would probably not disturb the industry appreci
ably unless it were in a very unfavorable position. A .reduction af
50 cents per proof gallon would amount to only S cents to 10 cents per
fifth, depending upon the proof of the product. At present prices
this would represent 3 percent or less of the retail price on package
sales. It would be a much smaller percentage of the price on sales
by-the-drink and would probably be insufficient to result in a price
adjustment on such sales. However, stocks of tax-paid spirits normally
held by the industry arc so large in relation to sales that a sub
stantial reduction in tax without provision for refunds might result
in large losses and disruption of normal business activity. The size of stocks appears to vary considerably with the season of the year
as well as with the volume of business. Eloor stocks returns filed
under the Revenue Acts of I9 H 0 —19 H3 indicate that stocks at the
seasonal peak prior to the Christmas Holidays amounted to about one-third
of the year’s sales. (Table 10) Most of the stocks are held by retailers
and wholesalers. In 19^-2 and 1 9 ^ the proportion held by retailers
increased compared with the earlier years. .Retailers on the average,
appear to carry stocks equal to from l-l/2 to more than 2 months’ sales,
Those carrying an unusually high proportion of slow-moving stocks would
have relatively larger inventories.
A3.though prices would tend to fall after a tax reduction, the
change might take place slowly or rapidly depending upon market
conditions. At the present timo the rela,tionship between demand and
supply is relatively favorable and under these conditions it might be
several months before a tax reduction would be. reflected in lower prices
to consumers. If a refund were granted under these conditions special
provisions would be necessary to assure consumers the benefit cf the
reduction andato prevent undue -windfalls to holders of tax-paid stocks. 2/
l/ Revenue Act of 19^5, Section 302. The refund provision was made
permanent by the Excise Tax Act of 19^7.
2} A provision of this nature is included in Section 1656 (b) of the
Internal Revenue Code, relating to refunds on alcoholic beverages,
1
- 30 Table 10
Floor stocks of tax-paid distilled spirits in possession of producers
and;-distributors on dates of imposition'of floor stocks takes under
Revenue Acts of 19^-0-19^3
(Amounts in million proof gallons)
: July 1, : October 1, : November 1, :. April 1,
: ' 19^0 :
I9 U 1
:
19^2
:
I9 UU
Stocks:Retail dealers
Wholesale dealers,
including importers
Distillers, rectifiers, etc.
Other 1J
Total
Precent of total held by:
Retail dealers
implas ale dealers,
including importers
Distillers, rectifiers, etc.
Other 1J
Total
Tax-paid withdrawals 2/
"l6.0
21.g
. 3 0 .I
23.3
IS.9
J.6
«2
2^.0
■5.5
-3
1 9 .3
3 .I
I .5
1 7 •>
3 .7
.2
3S.7
5 1 .6
5^*0
Î41.3
kZ.2
55*7
52.2
39.0
S.3
.6
35-7
5*7
2 .S
1 0 0 .0
1 0 0 .0
1 0 0 .0
1 0 0 .0
141*5
155.6 .
161.6
157.8
U6 .5
• IO .7
Us.s
9 -.3
.5
Stocks as a percent of tax-paid
withdraxirals:
Retail dealers
Wholesale dealers,
including inporters
Distillers, rectifiers, etcl
Other if
ZJ.k
33.2
33.^
28.3
1 1 .3
lk.0 ■
IS. 6
lU.S
Ln
r—i
Total
1 1 .9
2 ,1 3 /
1 .0 3 /
13 J*
2 .S
•2
J/
a
3.9 1/
.2 1 /
1 1 .0
3.2 3/
■ ’ -1 If
Treasury Department, Division of Tax Research
Source:
Unpublished data of the Alcohol Tax Unit, Bureau of Internal
Revenue.
1/ Manufacturers of flavoring extracts, foods, medicines, etc.
2 / Total domestic and imported products for calendar year in which floor'stocks
tax imposed.
1 / As percent of domestic withdrawals only.
1
The effect which a tax reduction without refunds would have.upon
the industry should "be weighed against the administrative problems
involved, The total number of producers, wholesalers, and retail
dealers handling distilled spirits is over 250,000. Ho regular reports
are now obtained from retailers which represent most of the total
number involved. The securing of returns, verifying their accuracy
and the payment of claims would represent a major undertaking for the
Bureau of Internal Revenue. It would be very difficult to avoid
payment of fraudulent claims,- since returns could not be investigated
for a substantial period subsequent to the date of filing without the
recruitment of a large force especially for this purpose.
B.
Drawback on distilled spirits used in noa-boverage products
Since the Revenue Act of 19^-2 a drawback has been allowed on
distilled spirits used in the manufacture of certain products,
principally food flavorings and medicinal preparations, whem the user
meot's conditions prescribed by law and regulations. In order to
qualify for a drawback the users must pay a. special tax graduated
according to the amount of spirits used. Since the minimum tax is
$25 and the drawback allowable at present is $6 per proof gallon,
manufacturers using not more than H 125 proof gallons would gain no
advantage from qualifying for a drawback. Where a user does qualify
for a drawback additional capital is tied up pending receipt of the
refund, and! special records must be kept. Smaller users feel that the
present law is discriminatory and have suggested that it be modified
to provide for securing distilled spirits on the payment of a nominal
tax at the time the spirits are withdrawn for use. 1 /
If a lower tax is to be provided on distilled spirits used in
medicinal preparations and food products, the drawback system is
considered essential to prevent the diversion of the distilled spirits
to beverage use. 2j Eiiperience ha,s indicated that very rigid controls
are necessary to prevent such diversion. The drawback system minimizes
the possibility of illegal sale of beverage spirits by requiring payment
of the full beverage tax rate in advance,and that the claimant for a
drawback assume the burden of proving proper use of the taxable spirits.
l/ Hearings before the Committee on Ways and Means on Proposed Revisions
of the Internal Revenue Code, 80th Congress, 1st Session, p. ^07
et seq.
2/ Denatured alcohol, which is tax free, may be used in the manufacture
of medicinal preparations for external use.
1
- 32 V
The risk of diversion is much greater where the "beverage spirits can
be obtained initially at a reduced rate of tax. The special tax
serves to limit the number of users who might otherwise attempt to
obtain spirits at the reduced rate to. be sold for beverage purposes. 1 /
Without such a tax the Bureau of Internal Revenue would have to process
many more claims for refund and there would be a substantial increa.se
in the administrative cost.of the drawback system.
TJ
1
During the fiscal year 19^6 the number of special tax stamps
purchased was 1,291.' (Annual Report of the Commissioner of
Internal Revenue, fiscal Year ended Juno 30,
p. lW,)'
About 5-1/2 million proof gallons were used by manufacturers
paying the special tax. (Unpublished data of the Bureau of
Internal Revenue.)
33 -
PART II - Excise Tax on Permeated Malt Liquors l/
1«
Description of the tax
The tax is applicable to fermented malt "beverages of domestic
production containing one-half of one percent or more of alcohol
by volume. Imported fermented malt liquors are not subject to
excise tax but are subject to the tariff duty. 2/ The chief products
included in the tax base are beer, lager beer, porter, and ale#
Payment of tax is required of the brewer at the time the product
is withdrawn from the brewery or the brewer1 s warehouse. The tax
is paid by purchasing stamps to be affixed to the packages or
cancelled in a manner approved by the Commissioner, prior to withdrawal.
Exemptions from the tax are provided for:
Withdrawals for export.
Withdrawals for production of cereal beverages
containing less than one-half of one percent
alcohol.
Consumption on brewery premises.
II.
Changes in the tax since 1913
A tax on fermented malt liquors has been in effect continuously
since 1862. During the prohibition period the rate enacted in 1919
remained in effect. The tax rates and effective dates of changes
since 1913 are shown below:
1
1/
This analysis is limited to the galloaage tax. In addition to
this tax there are special taxes on brewers and dealers in
malt liquor.
(See Appendix, p. 101.)
2/
The duty as established by reciprocal trade agreements is $7a75
per barrel of 31 gallons.
- 34 -
Changes in tax rates since 1913
(Per barrel of 31 gallons)
Revenue
Act
: '' Effective
:
date
In effect
Dec. 31, 1913
Oct. 22
Oct. 3
Eeb. 24, 1919
1914
1917
19 1 S
Pate ‘\
$ 1.00
1.50
3*00
6 .0 0
:
Revenue
Act
1933 a/
193^ 5/
. 19 Uo
19 U 2
191+3
Effective
date
Apr.
Jan.
July
Eov.
Apr.
7
12
1
1
1, 1944
* Rate
$ 5,00
5*00
6 .0 0
7*00
6 .0 0
~ Ttâ.
Lit)» 3, 73à Congress, 1st Ses sion)
a/ Act of March 22 , 1933, ("D-«VI 4lH
which legalized the sale of beer containing not more than 3*2
percent alcohol by weight. The tax on beer of greater alcoholic
content was not reduced until _the Liouor Taxing Act of 1934.
b / Liquor Taxing Act of 1934*
III*
Revenue collections, 195& - 1947
The tax on beer is the third most important source of excise
revenue, being exceeded only by collections from the excises on
distilled spirits and cigarettes. In the fiscal year 19^7 collections
from the tax on beer equalled 39 percent of the excise tax collected
distilled spirits.
Collections, fiscal years 1936 - 19^7
(In millions)
Eiscal
year
1936
1937
193S
1939 •
191+0
I9.41
:
.
Collections
$ 244.6
277*5
269.3
259.7
264.6
3 1 6 .7
::
::
Eiscal
year
:
:
Collections
1942
1943
1944
$ 3 6 6 .2
455.6'559*2
191+5
6 3 8 .7
6 50 .g
- 6 6 1 .4
1946
1947
- 35 -
A*
Character of supply
Between 1920 and 1933 production of fermented malt liquors was
confined to providing material for conversion to cereal "beverages
containing less than one-half percent alcohol, known as "near beer."
When the sale of beer was legalized in 1 9 3 3 . l/ the industry was
re-established largely on the basis of plant facilities which existed
prior to prohibition, although some new breweries were constructed.
After the industry became re-established, the number of breweries
operated was only about one-half as large as the number operated just
prior to World War I , 2/ The maximum number of breweries operated
after 1933 was 750 in the fiscal year 1 9 3 5 » following which the number
declined steadily to about UpO in 19&o, (Table l) Apparently overoptimistic estimates of the market for beer had led to the establish
ment of an excessive number of breweries. About one-half of the
decline in number since 1935 occurred during the war years,.
Although the number of breweries has declined substantially,
there is still a fairly low degree of concentration of production in
the industry! Perhaps the major reason for the,lack of concen
tration is the importance of transporta'ti on costs in relation to the
value of the product* 3 / Beer is produced in all but ten States.
About SO-percent of the breweries are located in thirteen States, and
these breweries accounted for S6 percent of total production in the
fiscal year 19^7» (Table 2) Por the year 19^-1, a comparison of pro
duction and consumption by States indicates, however* that production
exceeded consumption to a substantial extent"in only a few States.
(Table 3 )
1j Prom April 7. 1933, to the ratification of the Twenty-first
Amendment the sale of beer containing not more than 3-2 percent
alcohol by weight was legalized. (Public H o . 3 > 73d Cong., 1st Sess.)
2/ The number of breweries operated in I9 A was 1,392. (Treasury
Department, Bureau of Industrial Alcohol, Statistics Concerning
Intoxicating Liquors, December 1933. P* &67J There was a significant
decline in the number of breweries after 190 S but some of this
decline may have been associated with the spread of prohibition in
individual States.
3/ Por example, the rate on minimum carload shipments is 36 cents per
100 pounds between Chicago and St. Louis, 7C cents between Chicago
and Pew York and SU cents between Chicago and Denver. The trans
portation cost, including roshipment of the barrel, would be about
$1.30 per barrel more between Chicago and Dew York than between
Chicago and St. Louis (assuming steel barrels, weighing about 60
pounds). The difference in cost of bottle shipments would be over
$2 per case because the bottles are hoarier than the contents.
1
-
36
-
Table. 1
Humber of breweries operated, production, and withdrawals *
of fermented malt liouors, fiscal years 1934-1947
(Mill ions of barrels)
; Number :
. Piseal ■
.^Production
year
:breweries:
: operated :
Withdrawals 1J
■Total.
■•
Tax paid
: Total ;For bottling: For kegs, etc
1934
1935
1936
1937
1938
1939
1940
714
750
732
'720
696
653
611
37.7
45.2
51.8
58.7
56.3
53*9
54.9
32.7
42.8
49.3
55.9
54.452.2
53.4
32.3
42o2
48.8
55.4
53.9
51.8
53.0
8 .0
1 1 .0
16.3
22.9
24.3
24.7
27.0
24.3
31.3
32.4
32.5
29.7
27.1
26.0
1941
1942
1943
1944
1945
1946
1947
574
530
491
469
468
471
465
55.2
63.7
71.0
81.7
53.3
61.7
69,3
78.6
83.6
83.6
83.6
52.8
60.9
27.8
35.3
41.1
47.2
50.4
53,3
54,9
25.0
25.6
27,5
29 »7
29 c2
28.0
27.8
86,6
85.0
87 p9
6 8 .6
77.0
79.6
81.3
82.6
.-
Treasury Department, Division of Tax Research
Sour ce; Annual P-oports of the C.ommis si oner of Internal Revenue.
ly The difference between total withdrawals and tax-paid withdrawals
represents tax-free withdrawals and tax-free beer consumed on
brewery premises«
1
-
37 -
Table 2
Fermented malt liquors: Humber of breweries and production
grouped according to the number of breweries operated
in a State, fiscal year 1947
Size of class.
(number of .
breweries .
inisjfite) !
Humber
of
States
,
J
J
Production
Percentage
Number •
distribution
(in
of
thousands
Breweries \Productio
breweries
of barrels)
It
o •
- 0
6
6
to
to •
GO
1.3
2
7
14
1,947
3.®
2 .2
5
7
27
2,225
5,8
2,5
6 -10
7
46
7,446
9.9
8.5
11 - 20
6
83
21,728
17.8
24.7
21 - 50
5
166
34,991
35.7
39,8
Over 50
2
123
18,881
26.5
.21.5
465
87,857
1 0 0 .0
1 0 0 .0
3. -
0
10
1
Total
50
|J
-
1
-
fo
Treasury Department, Division of Tax Research
Source:
Annual Report of the Commissioner of Internal R evenue*
1J Represents number operated during any part of the year.
2/ Includes District of Columbia and Hawaii.
1
»7
f
- 3S V Table 3
Production and consumption of fermented
malt liquors by regions and States, 1941
(Amounts in thousands of barrels )
:
î
; _
{Production
^ ,
Surplus or ¿
,
Region and State » Production s Consumption -»
yl/as a Perceru
1 of consumption
Northeast
23,799
—
23,061
103*2
_
15*4
1,357
271
228
124
2,098
~
-
271
193
124
742
64.7
Rhode Island
Connecticut
Pennsylvania
New York
691
347
6,791
9,062
473
1,083
5,976
8,520
,218
- 736
815
542
146*1
32*0
113*6
106,4
New Jersey
Delaware
Maryland
4,079
55
1,382
2,823
125
1,340
1,256
- 70
42
144.5
44.0
103.1
27,601
20,217
7,384
136.5
4,167
1,997
3,930
3,100
3 ,660
1,246
4,708
3,587
506
750
w 778
~ 487
113.9
160.3
83.5
86*4
6,346
2,178
123
5,266
2 ,201
1,354
837
1,583
4,145
824
~ 715
3,583
288,3
160.9
14*7
332,7
149
128
433
331
- 149
- 125
58
- 331
—
2*3
113.4
-
4,071
8,521
- 4,450
47.8
161
139
27
421
898
64 5
458
Maine
New Hampshire
Vermont
Massachusetts •
North Central
Ohio
Indiana
Illinois
Michigan
'1
Wisconsin
Minnesota
Iowa
Missouri
North Dakota
)South Dakota
Nebraska
Kansas,.
South
District of Columbia
Virginia
West Virginia
North Carolina
35
-
—
3
491 .
-
111
(Continued on next page)
1
738
~
260
759
619
348
38.2
15,5
4.2
24.2
-39
-
Table 3 - concluded
Production and consumption of fermented
malt liquors by regions and States, 1941
(Amounts in thousands of barrels)
Region and State
Surplus or :Production
: Production : Consumption 4 def ijj, t (~) tas -a percent
*
.
:of consumption
South (continued')
South Carolina
Georgia
Florida
Kentucky
Tennessee
Alabama
Mississippi '
Arkansas
Louisiana
Oklahoma
Texas
West
Montana
Idaho
Wyoming
Colorado
76
259
•1,053
.195
■4
—
513
302
177
-
221
~\ 283
- 186
- 341
230
—
-
318
302
177
221
29 «0
43 c2
127.9 ,
38.0
-
1,082
50
918
667
349
1,901
415
- 299
- 983
162.2
14.3
48.3
4,446
5,126
- 680
86.7
186
36
53
307
260
140
77
370
- 74
- 104
- 24
- 63
71.5
25.7
73
144
145
67
- '73
- *126
- 22
- 52
22 A
736 ;
431
2,683
205
- 267
- 82
12709
38*1'
97.0
2,992
105.3
Hew Mexic©
Arizona
Utah
Nevada
.
19
123
15
Washington
Oregon
California
941
164
2,602
Total United States
283
262
600
823
59,917'
56,925
68.'8
83.0
13.2.
84.8
Treasury Department, Division of Tax Research
Source;
U. S. Tariff Commission, «Fermented Malt-Liquors,’ Possibilities
of Conserving Rail Transportation, " March 1943*
1/ Pifferenc.es will not necessarily add to totals due to rounding»
1
- 4o For the fourteen States having excess production, however, the excess
amounted to only about 20 percent of the total production for the
country in that year.
Some increase in concentration appears to have occurred in the
industry since 1 9 3 5 * For that year it was reported that the four
largest companies, representing six. plants, produced only about T2
percent of the total value of malt liquors. !_/ The ejjght largest .
companies, with eleven plants, produced about' 16 percent of the total
value. In the fiscal year 1946 the nine largest breweries, each
producing o v erl million barrels, accounted for about 21 percent of'
the total production. Breweries producing less than 100,000 barrels
in 1946 accounted for l4 percent of the output. The remainder of the
production, or nearly two-thirds of the 'total, was produced in
breweries of intermediate size. (Table 4) The largest breweries
arc generally those whose production is distributed on a national
basis, although some breweries that do not distribute nationally are
comparable with the national brewers. The concentration of production
on the basis of company control probably is somewhat higher than is
shown for individual breweries, but it does not appear that multiple
ownership of breweries by individual companies is very extensive'. 2/
Beer production includes some specialized products such as lager
beer and ale but these do not constitute a large proportion of the
total. There is also considerable variation in the alcoholic content
of the product of different producers. The alcoholic content of beer
ranges from around 2 percent to a maximun of 5 percent by volume, the
average before the war'being about 4-1/2 percent. 3./ On the bulk of
the production, therefore, the differences in the character of the
product are those associated with the taste or other features attributed
to the products of individual brewers.
Competition in the industry differs to a considerable extent from
one geographic area to another. There are a limited number of brands
of beer distributed on a national basis, but these brands do not
all compote in all markets. Because of the transportation costs there
are numerous, market areas, with a certain amount of overlapping.
.
r____
-~ /
-*J|.
1/ National Resources Committee, The Structure of the American
Economy, Part I, ’’Basic Characteristics,’’ June 1939, PP- .250-251.
2/ The number of corporation tax returns filed in the brewing industry
is about the same as the number of plants reported by the Alcohol
Tax Unit.
2/ An article in the American Brewer, November 1947, p. 21, presents
data showing an average alcoholic content for beer of 4.6 percent
in the years 1936-1939- The average declined to a low 4.0 percent
in 1946 but rose to 4.3 percent in the first 6 months of 1 9 4 7 .
The alcoholic content runs higher for ale than for beer.
-
1
$
-
1+1
-
Table 4
lumber of breweries and production of fermented malt
liquors by size of brewery, fiscal year 19 I+6 l/
Production
size-class
(Thousands of
barrels)
0 - 100
100 - 200
200 - 1+00
1+00 - 600
600 - 1 }000
Over 1,000
Total
• Breweries
Humber
253
S9
65
25
1 16.
9
-
^ 7
Total production
: Percent t
Barrels
:
Percent of total
(
in
millions)
Ï
: of total :
55.U i
1 9 .5
lh,2
5 .5
3 .5
2.0
100.0
.
II .7
1,2.5
19*1+
12.1
11.6
1 7 .5
gi+.g
1 3 .2 -5?
7
22 .9
. 1 I+.3
1 3 .7
20.6
100.0
Treasury Depar-ment, Bivision pf Tax Hesearch
Source:
if
1
Bureau of Internal Revenue, 'Alcohol Tax Unit, unpublished
data.
.i
tj', ■ "v
;■* ;; ''
Excludes breweries in part-time operation, which had a total
output of 1 7 ^ ,0 0 0 barrels.
In each market area there is competition "both between the national brands
and between these orands ^and the. products of breweries in the local or
regional market areas. ; Iil some market areas competition' is very strong
while in others it is limited. However, in most-market.'areas.- the number
of brewers represented probably is hot large and there may be a fairly
high concentrât!on-of sales among a few brewers. 1J Comparison of.
production and consumption for different areas in 191*1 showed that
production exceeded consumption by about 30 percent in the north central'
States whereas consumption exceeded production by more than 50 percent
in^the southern .States and parts of the Southwest. (Table 3 ) In general
price competition is stronger in the ,surplus areas, and ,as the result of
this competition producers in these areas'tend to seek outlets in the
deficit areas.. In addition to the competition from national brands, *
breweries in'a local market area may experience competition from pro
duction of adjacent market areas. . A study made in
revealed a sub
stantial amount of inter-area shipment of beer. 2/
The national brands generally do not compete on a price basis.
These brands are sometimes referred to as premium brands, for which
producers attempt to establish consumer preference by intensive advertising. ¿he locally produced products compote largely on a price
basis although there has been a,growing effort to establish brand
preference by brewers not having national distribution.: The increase,
in the proportion .of beer sold in bottles and' cans has made it possible •
for producers to place increasing emphasis on brand preference.. The . *
proportion of boer bottled increased from about 25 percent in the fiscal
years 193^-1936 to about 50 percent in the fiscal year 1940. ' The pro
portion increased further during the war and amounted to about twothirds in the fiscal year 1-9U7 . (Table l) However, the concentration
of sales in leading brands apparently has not reached the point where
competition is based-principally upon the characteristics of the
products. In markets where''in tor-arc a shipment of beer is feasible
there was keen price competition before the war. The high ratio of
fixed investment of breweries to sales tends rto encourage '-full utilization
of capacity, 3 / and the pressure for increased outlets tends to induce
price competition.'
i/ for example, the pro due ts of only about 20 breweries are distributed
in the District of Columbia, and five have the bulk-of the business,.
2 / U. S. Tariff Conmission, »Fermented Malt Liau'ors,. Possibilities of
Conserving Rail Transpqrtati on,» March 19 % .
1 / For 19^3 fixed assets represented''two-thirds of the total assets
of breweries filing balance sheets with corporation income tax
returns and amounted to about one-third of sales (.Statistics of
Income, Part 2 ).
~
- U3-
The method of àiat rih ut ion of beer differs depending upon the
locati on of the "brewers. The “brewers whose products are distributed
on a national, basis usually- soli to wholesalers while the local
brewers usually sell direct to retailers» 1] Some retail dealers
serve only one 'brand .of draught beer but most of them carry a number of
bottled brands^
The increasing importance of sales of packaged
beer has resulted in.greater potential competition at the retail
level where sales are made through many outlets other than specialised
liquor dealers, such as chain stores and super markets. Prior to the
war some efforts were made to establish resale price maintenance for
fermented liquors, but the experience was not very widespread and
appears not to have been successful. Zj Resale price agreement in a
given market encounters the possibility that outside brewers will
enter the market. In general it appears that at least in metropolitan
areas there has been considerable competition in the industry at the
distributing as well as the producing level.
The latest published information on the cost of producing beer
is for 1939* For that year the value of beer produced was approximately
$500 million (exclusive of Federal excise tax), an average of a little
loss than $10 per barrel. ¿/ The cost of grain and other cereals used
amounted to 17 percent of the value of products and manufacturing wages
and salaries represented iH percent. There appears to' be a substantial
difference between the cost of beer distributed in barrels for sale
by the glass and that produced for sale in bottles or cans. On the'
basis of sólectod brands the price of beer sold by the case in 1939
was about twice the price of beer in barrels, for equivalent amounts
f.o.b. the brewery and exclusive of Federal excise tax. \J■ Ceiling
\.
prices were imposed on beer during the war.’ Although the cost of
materials and labor increased, restrictions on the use of grain resulted
in less materials being used per unit of output. The industry was
given substantial price relief in 19^6 and prices appear to have in
creased somewhat after the termination of price ceilings. U/ Moreover, breweries increased .the.proportion of output sold in packaged form,
which according to reports is more profitable than bulk sales.- 5 /
if Federal Trade Commission,Resale Price Maintenance, 19^5»
pp, Ù15, kl6.
■• ‘• W *
2/ Ibid., pp. l+16 - ^ O
\
,y
2/ Department of Commerce, PpngUg^j^Mgffufac turca:1939* Voi, II,
Part 1. Although the cost of containers is reported as being
included, it is. not clear whether the value reflects the case
price for bottled beer or the bulk price,
t
Unpublished information of the Bureau of labor Statistics.
5/ Standard and Poor1 s Industry Surveys, "Brewing and Disitilling,,,
ft March 7,' 19 ^ 7 .
-
B.
m
-
Character of demand
Widespread consumption of beer in the United States followed
the Civil War and appears to have been associated with the growth of
particular national groups in the population., The pcnttern of hoer
consumption at present is probably less dependent than fox'merly on
the national origins of the population.' However, social attitudes
and consumer tastes are important basic factors in the demand for :
beer* These.factors influence the decisions of consumers with respect
to whether they will use alcoholic beverages.in any form and their
preference for one type over another. There;id a considerable area
of possible substitution of other drinks for beer, through the use of
non-alcoholic beverages or other alcoholic beverages. Relative prices
presumably affect the choice of some consumers, but it is difficult
to arrive, at a tangible basis for comparison of prices. On the basis
of alcoholic content, the price of inexpensive types of beer is
p rob ably about the same as for wine in eastern markets and somewhat
less than for distilled spirits, but it is doubtful whether consumer
comparisons are influenced to a large extent by this consideration.
Prom the resumption of legal sale of beer in 1933 to the out
break: of World War II, aggregate consumption of beer remained below
the peak year reached in the pro-prohibition period; per capita con
sumption was only a little more then, half as high as in the years
just preceding .World Wax 1 . 1/ This would indicate that some change
in consumer habits had occurred during prohibition. During this
pei*iod a -largo increase in consumption of soft drinks had taken place*
Beer consumption increased very little after 193& until the be
ginning of the war. By 19^5, however, consumption was more than 5P
percent above the-.highest prewar year 1937» (Table 5 ) As a result of
this increase per capita consumption again approached the pre-prohi
bition peak. It seems likely that a substantial part of the increase
in consumption over the prewar level resulted from the rise in the level
i/
1
Statistical Abstract, ¿$¥(5, p.-SSl, In the years 1911-19l¥
average consumption was slightly more than 20 gallons per capita.
and in the fiscal years 1 9 3 7 -19¥0 about 13 gallons per ;c.apita.
It should be noted that during the eaxlier period prohibition
existed in nine States. Per capita consumption data after 19l¥
were affected by a rapid increa.se in State prohibition. .
- 45 Table 5
Disposable income, t a x — paid withdrawals of beer and consumer
expenditures for “beer, 193 ^-19^6
jTax-paid
Consumer expenditures
Disposable ,
for beer.
income 1 /
withdrawals .of beer
: Percent
Percent .
Calendar '
Per
Amount ¡Percent
change
Amo
up
t
change
Amount
:
year
(millions) ¡of dis barrel
from
(billions): from • (millions
ipo sable of beer 2/
■preceding
preceding
' of
income tax-paid
year
barrels)
year
h
—
$
M
$ 1,259
l,»+U5
.2.5$
2 .6
3 2 .0 0
56
17
5
1,715
1,213
2 .6 .
2 .6
32.35
32.53
- 9.1
, 7.6
51
53
- g
3
1,680
1 ,7 3 0
2 .7
2 .6
32.6 9
32.77
72.9
gg.7
7.7
. 21.7
'52
57
- 2
1,733
11
1 ,9 7 6
1942
19^3
1 1 0 .6
i24.6.
24.7
12.7
65.
xi
2,206
73
13
2.5^3
19 Í+Í419 45
1 3 7 .u
1 3 9 .7
1 0 .3
1.7
go
S2
1946
146.0
' Air,5
go
193>+
1935
$ 5 1 .O
5 6 .3
1 0 .4
193b
1937
6 p .2
6 9 .2
1 5 .g
6 .1
53
1938
1939
62.9
67.7
191+0
1941
1°
4o
u5
13
9
J
7
J
-3
%■
2.4
: 2.2
3 1
3 3 .P
3 ^ 3
2.0
2.0
34.16
3 U.9 S
3,015
2 .1
2 .2
3 6 .6a
3 6 .g4
3,065
2 .1
32*53
2 ,9 10
Treasury Department, Division of Tax Research
Source*
l/
2/
1
Department of Commerce, press release of April 30» 1947 and Survey of
Current Business, Hay 1942, April 1944., February 1946 and February
IPHy. Disoosable income and consumer expenditures are from the series
published prior to the revision given in Supnlemont to Survey of
Current Business, July 19^7* Tax-paid w i t h d r a w a l s Annual Reports of
the 'Commissioner of Interna,! Revenue. ,
.
Disnosable income equals income payments less personal taxes.
Computed from rounded figures on consumers' expenditures and unrounded
figures on tax-paid withdrawals.
- U6 of 'consumer incom.es and the growth. In population.'. •Som£ Of the- change may
-represent’a shift in 'consumer habitsv But bébaûse'' of the'*large wartime
increases .in consumer; incomes, ..changes-in prices and-' the ahnofroal ehâracter of wartime consumption patterns, the- trend $n consumption of béer
is’ hot yot .clear. ...,
^ VV\-.'v ^ ■ 's •
.;
-*
.
Hxçept for two years since 1 9 3 5 * increases and decreases in disposable income .3./, have been, accompanied- .by ■corresponding changés in
beer consumption, (liable 5.) ?^r ^the .yearsf.1935^39 the‘Changes in
beer consumption and disposable income were relatively about the
same, but for the whole war period the- increase in beer; consumption
was only a little more than half as large as the increase in disposable
income. Por some, time during -and immediately following :thp- war, -con
sumption was restricted to a certain' extent by the; availability of '
supplies o’.-Grain restrictions continued to affect' production until
March 1, Í9^7.V¿/
‘
'
'' .
’
T.ery little evidence is obtainable'regarding the effect of
price changes ■on the, consumption of beer . There has been-" no reliable
price series developed'since repeal and the important changes which'
have occurred in other factors such as income and consumption patterns
prevent a reliable determination of price effects,. On the basis of f
changes in wholesale prices, it appears that the retail -oribe, of beer
is not more than one-fourth to one-*third above the prewar level* '¿/ .
This, increase is relatively; small compared with changes in the prices : *
of distilled spirits -(tax Included) which áre now more than twice \the"'
prewar level. Despite the smaller changé in price the increase in- ’
the consumption of beer has been only a little larger than .the increase
ih ïthe, -consumption of distilled spirits. "
‘ '
, •
1/
■■Disposable,
income represents income payments less, personal, taxes.
Unless .otherwise'noted>‘Department of Commerce, data on income and
expenditures in this study are those issued prior to the,revisions
published in nUational Income',n Supplement to Survey ,of ,CurrentBusiness-, July 19^-7•
■■ '■
2/ The general limitations on the use -of grain in producing beer-'were
*
terminated by war Hood .Order Ho; .lhl, •Amendment - . , 5s effective. March 1,
•19^7«' ,(l.2 IB ,13^7») This superseded W.B.Q. Ho. 66. Bestrictiens
on the use of wheat and rice were continued until W.B.O* Ho. ihl
was terminated on July 1, 19^7* (12 BE,- ^3 6 8 .)
Ho price series on beer is maintained by the Bureau of Labor
Statistics. The comparison has been made on the basis of unpub-^lished wholesale prices for selected brands.
Prior to the tax increase in 19^0 changes in the price of beer
were apparently tpo small to have an important effect, on consumption,
$he tax increase of $1.00 per barrel on July 1, 19^0 amounted to
only about 3 percent of the retail price. Because consumption in the
year following the tax increase failed to rise while disposable .income
increased/ it has been contended that the higher tax .rate had an .
adverse effect on the consumption of beer, 1/ It is doubtful, however,
whether the failure of beer consunrotion to increa.se can be attributed
to' the change in tax because it. appears that prices were not generally
increased by retailers following the tax increase. 2/
C,
Outlook for the industry.
The experience of the past 10 years indicates that most of theincrease in consumption that has taken place has been the result of
the rise in the level of. consumer incomes* It is not possible to
determine whether there is an increasing or decreasing trend in con
sumption. The tax^-paid withdrawals in the calendar year 19^+7 increased
approximately 10 percent over 19 ^6 , and exceed any previous year.
Consumption in 19^6 had dropped substantially below the level of
19^5 and even below the level of 19^+f After the removal of the
principal grain restrictions in March 19^7 the rate of production
increased substantially.
1/ House of Representatives, Revenue Revision of 19^1, p, 1020.
"Report oh Effects of the Excise Taxes on the Brewing Industry."
2/ An extensive check of.retail outlets by the Bureau of Internal
Revenue disclosed that although producers and wholesalers commonly
increased prices by the amount of the change in tax, about twothirds of the retailers did not increase their prices* In other
/ cases retailers increased prices by varying amounts, some by less
than the amount of the tax and some by more than the amount of
the tax. It was difficult for retailers to reflect the precise
amount of the $1*00 per barrel increase in terras of even coin
intervals on the retail unit of sale. Retailers subsequently
may have succeeded in making an adjustment for the tax' through ,
changes in the amounts served in the case of sales by the glass
or in conjunction with other changes in the case of bottle sales*
As the rgsuli principally'of tthfe higher level of consumption,
the industry is in a more favorable position than it was before the
war. filile a substantial number of small breweries have discontinued
operations, some increase in plant capacity appears to have taken
plane since the close of the war. It appears that this is largely
in the form o f 'espansion of bottling, facilities.• Wartime:experience
may have enabled brewers to obtain a'large output:from thèir existing
facilities. Operations'apparently have been at a much higher per
centage of capacity- than before the war, resulting in lower overhead
costs per unit of output,, Offsetting these, advantages, material and
labor costs have risen. 1/ for 19*45, the latest year for which the
information is available, unit labor costs were
percent above
the 1939 level. 2/ In the fiscal year 19*47 the industry used *4*4.2
pounds of materials per barrel of beer produced compared with-5p.0
pounds in the fiscal year 19*42, a decrease of 12 percent. (Table 6)
In view of the high level of demand in relation to present'
capacity, the industry is probably experiencing much less competitive
pressure on prices than before the war. Moreover, the continued
growth ih the proportion of beer sold in bottles and cans suggests
that brand preference, will be a more important' factor in competition
in the future. However, in-view of the relatively large number of
producing units which .can enter the more important- markets any sub
stantial reduction in consumption would, probably stimulate price
competition.
i f In 19*47 the principal raw material, malt, reached a price approxi
mately six times ab high as in 1939*' (Department-of-.Labor,
Wholesale Prices, December and .Year 1939, and "Average Wholesale
Prices and Index Numbers of Individual Commodities," October 19*47.)
2/ Department of Labor, Productivity end Unit Labor Costs in Selected
Manufacturing Industries, 1939-19^5♦ According to these data
there was a decrease in output per man-hour between 1939 and 19*+5
of 7,5 percent. It is possible that the reduction in productivity
represented a temporary situation arising from unusual factors
existing during the war.
- 49 Table
6
Materials used and production of fermented
malt liquors, fiscal years 1935-1947
•
Fiscal ;
year s
*
T, , ..
Rounds of material
Production
:
'
■
Materials used
:
/. '
, ,
, \
per barrel
(thousand
barrels):
,
,
( thousand pounds) :
produced
1935
1936
1937
1938
1939
1940
1941
2,393,453
2,720,621
3,055,774
2,905,783
2,738,260
2,768,810
2,761,101
45,229
51,812
58,748
56,340
53,871
54,892
55,214
52«9
52,5
52®0
51 c6
50« 8
50 «4
50 «¡0
1942
1943
-1944
1945
1946
1947
3,183,970
3,465,033
•3,802, 870
3,971,334
. 3,835,382
3,887,175
63,717
71,018
81,726
86,604
84,978
87,857
50 <,Ó
48*8
46 e5
45.9
45*1
44,2
Treasury Department, Division of Tax Research
Source:
Annual Reports of the Commissioner of Internal Revenue »
- 50 V.
Effects of the tax
A.
On profits
The increases in tax ma.de b y the E.evonue. Acts of 1942 and 19^3 proba'bly did not adversely affect sales during' the whr years because of the
existence of ceilings on prices and the limitations oh materials and
supplies which tended to restrict output. The industry showed la,rgo in
creases in profits during the war. In 193^ over one-half» and in 1939
nearly one-half, of the breweries filing corporation income tax returns 1 /
showed a deficit, but by 19^+5 more than 95 percent of them reported
profits.
(Table 7) Aggregate net income before income taxes increased
by about 190 percent from 1939 to 19^ 5* On the basis of data, reported by
the Securities and Exchange Commission for listed corporations, the indus
try experienced further increases in profits in 19^-6. (Table S) For
these corporations the rate of; return before income tax was twice tas high
in I9U 0 as in 1939 ♦ On the basis of not income after income taxes’the
rate of return oxcecdod that of the most profitable prewar, year, ,193o.
Bata are not available on the profits of distributors or retail
leaders in beer but it is probable that their profits have also been
favorable.
Some difficulty was experienced, however-,- in adjusting the
price ceilings to reflect the increases in tax in 19^-2 and 19^3* ' Since
the increa.se in tax represented odd fractional cents for the retail pack
age or glass of beer, the changes in price ceilings, did not uniformly
reflect the increases in tax*. 2
A change in the tax rate on beer usually
does not work out to an even-cenl basis for -tho different size units sold
at retail. For this rea.son, the amount of a change in the tax rate would
have an important bearing on tax shifting at the retail level. A change
of $1 or less per barrel .amounts to less than one-half *cent on aJLl common
retail units smaller than.one quart. As will be seen from Table 9» it is
difficult to make a change in rate which would facilitate price adjustments
on all retail units.
J
The increa.se in-the tax rate on beer during the war years amounted to
60 percent, but the increase in tax in relation to the price of beer has
not been very large. 3/ The Federal tax now represents about 20 percent of
the retail price (including tax) of the inexpensive brands of beer, compared
with roughly 15 percent before the wartime tax increases,
The tax is a
lower percentage of price for ’’premium beer,” and a lower percentage of the
price of bottled beer than of draught beer of the same brand.
hf
1/ The number of corporation income tax returns.for breweries is approxi
mately the same as the number of breweries reported in operation by
the Alcohol Tax Unit. This would indicate that most of the units in
the industry operate as corporations and arc included in the corpora.tion income tax statistics.
2/ In 19 U2 the increase in the retail price to cover the- increased tax
' exceeded tho amount involved on 12-ounce bottles .but was less than the
amount involved on quart bottles. Ho increase was -allowed on the
price of draught beer because the amount involved was less than onehalf cent on regular size glasses.
3 / Because of the tendency for a tax levied at the manufacturers’ level
to bo pyramided retail prices.tend to increase by more than the amount
of the tax. ,
.*
k/ The ratio will vary with .the taxes imposed by State and local govern~ nents, For information on State taxes, see Treasury Department study
”Federal-State Tax Coordination,” July 19^7*
Tabic 7
Breweries and malt producers:
Humber of corporation returns, compiled
receipts, not income or deficit,, and income taxes, 1938- 19H 5
(Dollar amounts in millions)
Year
193s
1939
19U0
1941
19^2
19U 3
I9H.H
19^5
:
Returns with, net income
Total
:
î
Total
:
Dumber
;
Det
; Income
number
-,
:
compiled
*
*
of
* income * taxes l/
of returns
:
: returns : receipts
’
65O
615
.562
281 _
U59
326
2Ô2
296
368
U 28
U 27
45U
U3U
51^
HS 5
H77
% 62.8
l/
i
:
1 ,S0H
62*7
88.5
I 2O .7
I 7I .9
I 8U .9
111.9
1,936
2OO.3
123.7
76.5
1,193
1,530
77.0
Treasury Department, Division of Tax Research
Source:
Returns with no not, income
:
Dumber : Total
Income
of'
: compiled î Deficit
after :
receipts :
taxés : returns
51.8
63.7
H a .3
57.6
60.8
76.1
73.0
$698
77^
7H3
95H
.Statistics of Income, Part 2.
Including excess-profits taxes.
$
11.0
I3.3
1
iH.H
30.9
59.9
95.2
$
369
289
3OO
$ I58
$ io
.5
II 5
7.9
. I 5H
11.0
218
9H
6*7
II 7
Hs
2.5
H9 .
18
.9
32
lH
•5
20
26%
.5
- 52
Tabic 8
Net profits before and after income taxes, and rate of return
on-net worth of breweries reporting tp Securities and
' ~•
' Exchange' Commi s s i o n % f ,y \
Net profits as percent of
net worth 2/
let profits’.car-
'Before income : After income
:
taxe s'
* ' ‘41axe £- -;--
Before income ■%
■ .After income
taxes;
: ’*
taxes
■(Millions)
1936. < :
1 9 3 7 .;
•
193 s V •
1939
19 U0 3 /
19 U1
19 U2
19 H5
19m
19^5
19 U 6
$9,7
7.6
Sc 2
10.2 '
9.9
1 3 .S
17-7
-35.7
39.3
3 S .7
kS.k
$7,8
?
5*9: 1 ^ 6<6- *,■
■ • . 2 ^ .3
IS i2:
S.l
7 *5
8*7
'
;
18\3
2 1 .0
1 5 .b
2 0 .s
S.6
2 5 .6
li.h
,31-6
'33.9
35*9
hhM9
1 1 .6
13 «S
2 5 .0
$ ''
:
19.* 7
< , .in . 2
1U .7
Ù 1 6 .s
. , 11 .S
X3*i
12,5
1^.0
■ - 1 3 /4
12*S
" 2*4.2
Treasury Department, Division of Tax Research
Source:
Xj
Securities and Exchange Commission, Survey of American Listed
Corpordtion's, ’’Data on Profits, and Operations,M :<jRar,tv.I*
-4
Companies included for the whole period are:‘ Berghoff-.Brewing
Corporation, Brewing Corporation of America, The Berger Brewing
Company, Centlivre Brewing Corporation, Columbia, Brewing ..Company,
, The Croft Brewing Company, Duqucsnc Brewing Company of Pittsburgh,
'Palstaff Brewing Corporation, Port Pitt Brewing Company,•„Peter Pox
Brewing Company, Prankcnmuth Brewing Company, Goebel Brewing Company,
Gi-iesedieck Western Brewery Company, Harvard Brewing Company.-, G,
Holloman Brewing Compahyv Hyde Park Breweries', Association,, :Ine> ,
•
. . Gv Xru.egcr Brewing Company, Minneapolis Brewing Company, Pfeiffer
Brqwi^g 'Cempanfe Pittsburgh growing Company, The Renner'Company,
• 'Standard Brewing, pompan^ of .Scranton,.. Sterling Brewers,.Inc., and
. "* Tivoli ^Brewing Company. . Companies included for only nart of the
. : period.pro:' Atlhntuc 'Cpaphny1940^1946):., Ganadian '^¿.cviprlcs, Limited
(l945'r'l$H^).,-‘C<5iopb'r Brewing Company, Inc. ‘(19^5-19^6) > Priars Ale
Brewing Company X19^-19^6;, George, Muehlebaqh Brewing Company (19^5~
19^-6), Rod Top Brewing Company (19^5“X9^6), Jacob Ruppcrt 11943-19^6),
Grand Valley Brewing Company (1936-19^-3) •
2/ Net worth as of the beginning of yea,r. Includes preferred and common
stock and surplus.
2/ Report for the Croft Brewing Company was for a nine-month interim
period, Net worth ratios are adjusted to a full year.
- 53 -
Table 9
Fermented malt liquors!
anii
P^-1Jls ^ark-up on the
tax for selected retail sales units and various changes
in rate of tax per barrel
(In bents)
Size of
retail
sales unit
9
9 $1 tax
9
9■ Tax
P
9 per
9
9
9
retail
unit
per barrel
« Tax plu^
* mark-up'
:
per
« retail,
; unit l|
“ $3 tax per barrel
$2 tax per barrel v *
\9 Tax plus!
STax plus
Tax
. mark-up t Tax
!mark-up
per
per
*
t per
pep
i
retail
retail
retail :
! retail.
unit
unit
* unit 1
unit 1/ *
J
Bottle or can
Quar t
V81
1.34
1.61
2.68
2.42
4.02
12-ounce
*30
.50
,60
1..00
.91
1.51
12-ounce
«30
.56
.60
1.12
.91
1.68
11-ounce V
-28
.51
■ .55
1.02
.83
1.54
10-ounce
.25
.47
.50
.93
.76
1.40
8-ounce
.20-
.37
.40
,74
.60
1.12
7-ounce
.18
.33
.35
.65
.53
.98
6-ounce
.15
.28
.30
.56
.45
.84
Draught beer
Treasury Department, Division of-Tax Research
J
1
The figures showing tax plus mark-up assume that in addition to passing
on the tax, the wholesaler takes a mark-up of 23 percent on the tax and
the retailer a further mark-up ©f 35 percent in the case of bottled beer
(O.P.A. regulations governing sales for off-premise consumption)» In
, the case of draught beer, the respective mark-ups are assumed to be
23 percent and '50 percent*
- 5^ -
Throughout the period from.April 1933 to duly 19^0 the tax on
"beer was $5 per barrel. Prices also remained fairly stable after the
first year* or two of legalized sales. There is no apparent basis for
determining the effect of the tax in this period. Per capita con
sumption was much higher prior to prohibition when the tax was only
$1 per barrel. It is doubtful, however, whether a comparison, of tax
rates for these periods has much significance even if allowance were
made for changes in prices. It is likely that changes in consumption
habits be W e e n the W o periods were a much more important factor than
the increase in the tax rate.
Since I9 I4O price increases, exclusive of tax, have been greater
than the increa.se in the tax rate of $3 per barrel. Although it is
probable that the increase' in consumption would have been somewhat
greater in the absence of the tax increase, past experience does not
give a good indication of how much greater. The effect of the total
p-rice increase, including tax, apparently has been smaller than the
increasing effect which higher incomes had on consumption. It should
be noted, however, that the increase in tho price of beer, including
the higher tax, has been substantially less than the general increase
in prices of consumer goods.
The present high level of demand in relation to the capacity of
the industry minimises any adverse effect that the tax nay have on
sales. With-a very substantial reduction in consumption or increase
in the capacity of the industry,.however, the effect of the tax on
the profits of the industry probably would be more serious. Available
evidence indicates that in the more important market areas price
competition might become intensive under such conditions. While some
producers in Some markets might be able to maintain prices through
reduction in supplies placed on the market, for the bulk of pro.due tion
prices net of the tax probably would be lower by reason of the existence
of the tax,
B . On competition
Boor competes with other taxed alcoholic beverages, and with
non-taxed beverages. The taxes on alcoholic beverages probably cause
some, shift in consumption to non-alcoholic beverages. Moreover, the
taxes on alcoholic beverages are not uniform. In relation to price
the tax on beer is lower than the tax on distilled spirits but generally
higher than the taxes oh wine. But wartime increases in the tax on beer
were relatively smaller than the increases in the taxes on wine and
distilled spirits. Since demand for alcoholic beverages has continued
at a, relatively high level following the close of the war and un
certainties exist with respect to the supply of distilled spirits and
beer, it is possible ‘that the competitive position of the different
products has not yet been seriously affected by the present tax rates.
1
- 55 -
Experience has not shown the extent to which price is a factor in
consumption of these products and whether demand is more sensitive to
price changes for one product than for another.
The tax may have some effect on the competitive position of
different producers in the brewing industry.' Since the tax is a
specific amount per" barrel, it represents a higher proportion of the
price (before tax) of the lower priced than the higher priced products.
This tends to cren.te a competitive disadvantage for the lower priced
products. For example, the price of certain premium beers at the
brewery is from 5^'to 75 percent higher than the price of local nonpremium beer, l/ The price including tax, however, is only about one
third higher. The specific tax thus brings the prices of the different
products relatively much closer and this may induce some shift in
consumption to the higher-priced product. 2j However, although the
appeal to consumers based on price differentials is reduced by the
tax, the difference between the low and high priced products is still
largo enough for non-premium beer to account for the major part of
sales.
§1 V . *t _■::
: ...;y $ I , p\\
- MWj¥k $ j
I ■_ •' gf! ? \ ■ * - •
C . On consumers
Reported data on consumer expenditures for beer in relation to
the size of consumer incomes do not appear to be sufficiently complete
to afford a reliable indication of the distribution of the tax burden. 3/
If to a large extent the lower income consumers purchase lower priced
beer, the tax would represent a higher proportion of their expenditures
for beer than of the expenditures of the higher income groups. This
factor, together with the widespread consumption of beer, suggests that
the tax burden may be distributed somewhat rogressively.
Beer is not included in the Consumers’ Price Index of the Bureau
of Labor Statistics.
T/Based on unpub li shed’price information of the Bureau of Labor
Statistics.
Zj The absolute difference in price, tax included, may remain the same
as the difference before tax. But when the price for both products
is increased very substantially by the tax the relative difference
in' the prices of the two products may become very snail. (Cf. Treasury
■Department Study, ’’Federal Excise Taxes on Tobacco,” pp„ 23, 2U.)
Data for l ^ I expenditures are reported in Department of Labor,
Family Spending and Saving in ■Wartime, Bulletin Ho. 822, 19^5» P . 78,
but it is indicated -that in the survey consumers may have under
stated their expendituros by as much as two-thirds. Expenditures
as reported were proportional to the size of the family income.
1
- 56
As indicated above, the consumption of beer has. fluctuated
less than consumer incomes. Xj If this relationship exists in the
future, the tax would have the effect of withdrawing relatively more
purchasing power from the income stream in periods of low business •
activity than in.periods of high business activity.
71,r Administration and compliance
The number of taxpayers involved is not largo, there being less
than 500 breweries in operation. However, the Government supervision
over brewery operations entails additional expenditures not involved
in most of the excise taxes. The procedures prescribed for con
struction and operation of plants and detailed reports required of
taxpayers for protection of the revenue impose- substantial compliance
burdens on breweries. However, there is less possibility for evasion
of this tax than the tax on distilled spirits, and enforcement costs
are correspondingly lower/ Although the present tax'is relatively
high compared with the value of beer, because of its bulk, it is
difficult to produce or transport the product illegally without de
tection.
7X1.' Technical problems
The principal technical problems .that arise under this tax are:
A.
1.
Whether floor stocks taxes should be imposed
or refunds made on floor stocks^if the tax
rate is changed.
2.
The taxation of imported beer.
Floor stocks taxes and refunds
■<
Floor stocks taxes were levied on boor under the Revenue Acts
of 19lh, 19 ho, 19h2, and 19 ^3 . 2) Although beer is too perishable
to bo stored for long periods, withdrawals in the absence of a floor
stocks tax probably would bo Large enough to result in substantial
avoidance of an increase in the tax. Moreover, an increase in tax
TT
2
* 46* C
;
Revenue Acts of 1917 and 1918 did not contain special pro~visions for taxes on floor stocks. However, the increase'in tax
under the 1917 Act was Interpreted as being applicable to stocks
removed before the effective date of the. Act. The 1940 Act provided
an exemption for stocks held on premises of dealers who paid an
occupational tax as a retail dealer but not as a wholesale dealer.
p
! The
- R7 -
without provision for a tax on floor stocks would result in inequities
"because of the superior financial resources and facilities of some
dealers and "brewers for carrying such stocks.
There has "been no experience with a reduction in the tax on beer
since 1901., l/ However, in connection with possible future reduction
in the w a r tax rate from
to $7 per barrel the present law provides
for refunds on floor stocks subject to certain conditions. 2 j
Tax-paid floor stocks of fermented malt liquors normally appear
to be small in relation to sales. The stocks reported under the
Revenue Act of 19^2 represented loss than three weeks' tax-paid with
drawals and under the Revenue Act of 19^3 less than two weeks' .with
drawals. (Table 10) In each of these years stocks of retailors
amounted to less than a week's supply. The stocks of bottled beer are
probably larger in relation to sales than stocks of draught beer. In
view of the small stocks, the losses which the industry might experi
ence under a tax reduction without provision for refunds on floor stocks
would not be largo.
A tax reduction of less than $3 per barrel would represent loss
than one cent on all retail sales units, except quart bottles or two
12-ounce bottles. Thus, retailers might gain a windfall from a refund
on floor stocks ‘unless some provision were made to e.ssure consumers
the benefit of the reduction."'¡J Because their sales are in larger
Quantities, wholesalers and brewers could adjust prices by the amount
of the tax change. Since competition would tend to force reductions
in prices by brewers and wholesalers' there would be more need for a
refund on floor stocks at these levels.
The payment of floor stocks refunds to all dealers would involve
almost hOO,000 returns. There is more possibility of fraud and closer
examination of returns is required on refunds than on floor stocks taxes
This work could be reduced by providing for refunds only where stocks
exceeded a. minimum amount. However, this type of provision would
discriminate against small dealers. The difficulties involved could
\f A 1though' 'the
rate of $6 per barrel imposed by the 1918 Act was
reduced to $5 By the Liquor Taxing Act of 193^> a tax of $5 per
barrel on 3*2 percent beer had been in effect from April 7» 1933*.
2/ Revenue Act of 19^5, Section 302. The refund provision was made
permanent by the Bxcise Tax Act of 19^7»
3/ A provision of this nature is included in Section. 1656(b) of the
Internal Revenue Code, relating to refunds on alcoholic beverages.
1
- 58 Table
10
Floor stocks of tax--paid fermented malt liquors in possession
of producers and distributors on dates of imposition-of•
floor stocks taxes, under Revenue Acts of '1940^19^3'
( In
thousands of barrels)
:
:
Stocks •
Retail dealers
Wholesale dealers.
Brewers
Other .
Total
July 1,
19^0
1/
1,113
U5U
0
'
■
2/
Percent of total-held by:
Retail dealers
Vrholesale dealers
Brewers
Other
'
; 1 ,^ 5
951
311
3,510
2,709
^5a
-
1 2 .9
*
1 0 0 .0
51,Sll
Stocks as a percent of tax-paid
withdrawals :
Retail dealers
Wholesale dealers
Brewers
Other
Total
u
j
2 *1 ^
.9
a
: April 1,
19*&
i,Uhs
1 ,60 S
■ ^53
1
Ui.y/o
Total
Tax-paid withdrawals during cal order'
iroar ¡3/
.
: November 1,
:
19U2
6U,5SU
2 .2 $
2.5
•7
1
53*3^
35»1
11*5
*
100.0
7 9 ,5114-
1 .&l
1.2
A
*
*
5A
3A
Treasury Department, Division of Tax Res earch
Source?
1/
2/
Unpublished data of the Alcohol Tax Unit, Bureau of Internal
'Revenue.
Stocks held by retail dealers on retail premises exempt from tax and figures
therefor not available,
Not available*
i/
domestic "beer only. Imports are negligible in ordinary years but may hare
been as much as 1 percent of total withdrawals in I9UU.
*
Less than *05 percent*
1
- 59 -
be minimized and greater equity achieved by limiting refunds to whole- .
salers and producers.
B.
The taxation of imported heer
Most excise taxes apply to products imported as well as to those
produced within the United Sjtates. Imported heer, however, is subject
only to tariff duty. Bor many years the duty was substantially higher
than the excise tax on domestic heer, hut as the result of decreases
in the import duty and increases in the excise tax the duty is now
25 cents per barrel less than the excise tax of $8. if This has in
creased competition from imported heer to some extent. As a, result
legislation has been proposed to subject imported beer to the present
excise tax. 2/ There a,re different ways in which' the present discrimi
nation might he corrected. This natter, together with other cases of
discrimination between imported and domestic products, is being made
the subject of a separate study.
1/ Under "the. Tariff Act of 1930 the duty on beer was $31 per barrel.
Under the previsions of Sec. 33^ of this Act the rate was reduced
to $1 5 .5 0 per barrel and was subsequently reduced under trade
agreements to the present level of $7*75* Prior to the Revenue
Act of I9 U0 , the excise tax on beer was $5 Per barrel,
2/ H. R. 2287, 20th Cong., 1st Sess.
- 60 PART III,
I.
Excise Taxes on.Wines
Description of the tax
Tlie tax Is= imposed on wine, which, is defined as the product of
the alcoholic fermentation of the juice of fruits and berries or
imitations thereof.' The tax is levied at a, specific rate on the
basis of the volume of-the product arid varies with the type of wine.
Payment of the tax is required at the time of removal of the
wine from the winery, bonded Stpr'eroom, or customs custody,- for
consumption or sale. The tax is payable by the proprietor of the
winery or warehouse,, or the importer, and is paid by purchasing tax
stamps-,to be affixed to the containers prior to removal, 1/
Exemptions from the tax are provided for withdrawals for:
v
X.
Export,
2.
Use as distilling material in the
production of brandy and alcohol,
3-
Production of vinegar or dealcoholized wine*
h,
Eamily use* 2j
5 . Use of the United States (but not
for resale, in the United States) ,
II.
Changes in the tax since 1913
-
f _‘
Wine.s have been.taxed-continuously sin pe 191 *+, the tax remaining in. effect during .the peirio'd of prohibition. Prior .to .191*+ --a .
tax was imposed-on artificial o r :imitation wine, but, this tax- • apparently was.,superseded:by the tax levied'under the Revenue Act
of 1 9 1 6 . 3/ The rates and effective dates of .changes, in the "
various wine taxes since •19 13 ^are shown below:' .
^ *
Tf
‘
In the" case- of built, shipments' by tank truck .or. railr.o.ad -tank car.,
the stamps are affixed to the route_board of the 'truck or car. •
2/ Hot exceeding 200 gallons por year.
V The tax on artificial or imitation wine was not repealed until
the Act of March 22, 1933- (Public Ho. 3 > 73& Cong., 1st Session)
- 6i C hange? i n
R evenue!
A ct
,
E f f e c t iv e
d a te
ta x
ra te s
Oct* 22
1916
S e p t ., S
1917
Oct.
I9 IS
Peh,
I92 S
■ -
0
àj
iL iq u e u r s ,
: N a tu ra l A r t i f i c i a l l y ; c o r d i a l s ,
:
: c a rb o n a te d ; e tc .
; ( p e r jr p i n t , o r f r a c t i o n t h e r e o f )
( p e r w in e - g a l.)
1914
1913
R a te
S p a r k l i n g w in e s
:
S t i l l w ip e s a /
s in c e
-
5
<t
1u
10
25(i
3
11
12
s
20
50
6 .
3
?>i
16
4o
$1
6
6
June 29
4
io
25¿
1934 d/ Jan.' 12
10
20
4o
193S 0 / July 10
5
10
20
pi
l i
3
* .• 1919
12
îïo change
---------- -
1940
July
1
6
IS
30
3
If
li
H
1941
Oct.
1
S
30
65
7
3
i
3i
1942
ITov.
1
10
40
$1
10
5
5
19 U3
A p r,
1 , 1944
15
60
2
15
10
10
1916
a / B e g in n in g w it h th e R evenue A c t o f
, t h e r a t e s sh ow n a r e , r e
s p e c t i v e l y , f o r w in e c o n t a i n i n g "by v o lu m e ( l ) n o t o v e r 1 4 - ^ e r c e n t
a lc o h o l, ( 2 ) o v e r 1 4 - p e r c e n t h u t n o t o v e r 2 1 - p e r c e n t a lc o h o l, and
( )
o v e r 2 1 - p e rc e n t h u t n o t o v e r 2 4 -rp e rc e n t a lc o h o l.
TJ in e c o n t a i n
i n g o v e r 2 4 p e r c e n t o f a l c o h o l h y v o lu m e i s c l a s s i f i e d a s a
d i s t i l l e d s p i r i t and ta x e d as s u c h ,
h / A p p l i c a b l e w h e re p r o d u c t i s made f r o m f o r t i f i e d w in e a n d d i s t i l l e d
s p ir its .
C o r d i a l s a n d l i q u e u r s m ade f r o m u n f o r t i f i e d w in e a r e
s u b je c t to th e r e c t i f i c a t i o n t a x .
c j P r o p o r t io n a l r a t e s p r o v id e d f o r f r a c t i o n a l p a r t s o f a g a l l o n ,
d / L i q u o r T a x in g A c t o f 1 9 3 4 ,
e j L iq u o r T a x A d m in is t r a t io n A c t o f 193^»
3
- 62 III»
He v e n u e c o l l e c t i o n s ,
1 9 ^ 6 -1 9 1 *7
T h e t a x e s o n w in e s p r o d u c e t h e l e a s t r e v e n u e o f t h e t a x e s o n t h e
th r e e b ro a d g ro u p s o f a lc o h o l ic b e v e ra g e s *
l ’o r t h e f i s c a l y e a r 1 9 ^ 7
c o l l e c t i o n s . fr o m t h e t a x e s o n w in e s a m o u n te d t o o n l y 2 * 3 p e r c e n t o f
th e - c o l l e c t i o n s f r o m a l l t a x e s o n a l c o h o l i c b e v e r a g e s *
C o lle c t io n s ,
(In
Fiscal
year
:
.:
1936
IV .
$
m illio n s )
10.1*
9*1
0.9
7,g
9«l*
12.$
i
i
Collections a/
19H2
19j*3
I9UH
19U5
$ 25*2
33-7
3U-1 '
,1*7*1*
60.S
57*2
191*6
19U7
In c lu d e s c o ll e c t i o n s fr o m th e t a x on b ra n d y u s e d f o r
f o r t i f i c a t i o n o f w in e s w h ic h was i n e f f e c t , p r i o r t o
J u l y 1 , 1 9l40*.
E c o n o m ic b a c k g r o u n d o f t h e
A.
1 9 3 ^ * 2 .9 ^ 7
Collections a/ : : Fiscal
:i
year
1937
1938
1939
19U0
191*1a/
f is c a l y e a rs
C h a ra c te r o f
1»
in d u s tr y
s u p p ly
T y p e s o f w in e s a n d s o u r c e s o f
s u p p ly
T h e r e a r e s e v e r a l d i f f e r e n t c l a s s e s o f w in e b u t b e c a u s e o f v a r i a
t i o n s i n t h e i r c h a r a c t e r i s t i c s o r u s e no te r m in o lo g y i s u n i f o r m l y a c c e p te d *
T he f o l l o w i n g c l a s s i f i c a t i o n s i n d i c a t e t h e m o re i m p o r t a n t w a y s i n w h ic h
th e y a re r e fe r r e d t o !
Tax c la s s ific a tio n
S t i l l w in e
U n d e r 1 m$
.....
l l j —2 1 $ ..................
G e n e ra l d e s c r ip t iv e
T ra d e
e x a m p le s
N a tu r a l ( u n f o r t if ie d ) o r ta b le
( S a u te rn e ,
( b u rg u n d y
F o r tifie d ,
( P o rt, s h e rry ,
(m u s c a te l
2 1 - 2 b/.*. . . . . .
S p a r k l i n g w in e
■
N a tu ra l
)
A r tific ia lly c a r-)
b o n a te d
)
a/
te rm s
s w e e t, o r d e s s e rt
a/
c la r e t,
to k a y ,
( n o t m a rk e te d )
— •— - — •— --------- --------
S p a r k lin g "
(C h a m p a g n e ,
( s p a r k lin g b u rg u n d y
I n t r a d e u s a g e w in e s a r e o f t e n d i s t i n g u i s h e d b y d e g r e e o f d r y n e s s
o r s w e e tn e s s .
b / W in e s c o n t a i n i n g m o re t h a n 2 ^ p e r c e n t a l c o h o l a r e c l a s s e d a s d i s t i l l e d
s p ir its .
- 63 -
The fruits used in the production o.f wine ordinarily do not foment-to
nore than lh" percent alcohol”. The product of complete fermentation
generally'has a non-sweet or "dry" •taste, although some natural wines are
sweet-tasting, 1j The "fortification” of wine "by the addition of dis
tilled spirits, such as brandy-or alcohol, prior to the completion of
the fermentation of the sugar content, produces a sweet or "fortified"
wine. The addition of spirits results in the product having a higher
alcoholic content than the natural wines. Sparkling wines are made
from unfortified still wines by secondary fermentation in hottles or
other containers, or by artificial carbonation.
Domestic production of wine was smellier than imports prior to
about IS7 0 » but since that time it has exceeded imports. 2V Prior to
the outbreak, of World War II imports represented only about 5 percent
of the consumption of still wines (Table l) but more than 50 percent
of the consumption of sparkling wines. (Table ,2) On the ba.sis of
volume only about 2 percent of the total wine consumption is represented
by spaikling wine. However, sparkling wines sell, at a much higher price
and represent a le.rgor proportion of the total .on the basis of value.
Since repeal still wine commercially produced has predominantly been in
the fortified category. During the period 1936 -1 9 3 9 » still wine'.having
an alcoholic content of lH percent or more accounted for two-thirds of
the total* (Table l) It appears' that’ this represents a marked shift
from the ratio prevailing when wines were not subject to tax;. 3/ Hone
wine production was stimulated during the prohibition period and it has
been estimated that the amount of home-produced wine in the period
1936-19 39 exceeded the tax-paid withdrawals of wine containing not over
lh percent alcohol. \[
1/ ¿rapes vary in their sugar content and taste. Eastern grapes
usually have a lower sugar content than Californi'a grapes and it
nay.be necessary to add.sugar to the juice to make a stable wine.
In California the addition of sugar is prohibited.
Zj Statistical.
Abstract, 19^-6, p. 375*
3/ Tariff Co m i s s ion, G-rapes, Raisins and Wines, 1939* P* 290. About
60 percent of the still wines consumed prior to prohibition wereestimated to be of the table variety.
.
U/. It has been estimated that home produced wine .averaged 32 million
gallons in the years 1936-1939* (Tariff Commission, War Changes
in Industry Series, "Grapes and Grape Produc t s," 19^-7 >-P * 35 •
)
Estimated home-produced wine plus tax-paid withdrawals of domestic
still wines containing not more than lU percent alcohol'amounted to
56 percent of the estimated total consumption of domestic still
wines in the years 193 6-19 39 <
Table l
Still wines:
Wineries operated, production, tax-paid withdrawals, and stocks on
June 3 0 , fiscal years 1935-19*47
(Thousands of wine* gallons)
Fiscal
year
*•
J
queries. Total
operated.
1935
1936
1937
1938
1939
19 *40 .
19*41
1 ,1 1 6
1,2^5
1 ,2 0 6
1 ,1 7 5
1 ,1 3 7
1 ,0 9 0
19*42
19^3
19 *4*4
191+5
19*46
19^7
1 ,0 1 0
980
911
903
sso
8*40
1
,0 6 b
91,729
1 7 0 ,S76
122,0*45
228,726
231,959
2 1 2 ,3 6 8
286,371
313,706
195,225
26*4,853
3 1 ^ ,9 3 3
379,936
515,335
Production
For use] For use as:
distilling:
as wine
material î
3/
3/
3/
3/
3/
3/
1/
ll
it
i
1/
127,5*48
7 3 ,3 1 3
1 0 0 ,1 7 5
10 8 ,255
119 ,6 9 6
1 6 9 ,6 2 7
%
it
To tal
37,358
50,005
65,5si
61*,375
70,713
86, *¿72
1/
9 1 ,6 1 2
1 8 6 ,1 5 8
1 1 6 ,9 1 2
16 *4,677
206 ,729
26 0 ,2*40
31*5 ,7 0 3
10*4,589
1 1 2 ,3 1 9
96,080
9 5 ,31*1*
1 1 3 ,66*4
1 0 7 ,8 8 7
:
Tax-oai d wi thdrawala
:
i
J
Domestic
: Total : Hot over Over 1 *!- and
Stocks on
J:1*4 percent: not over Imported * June 30
1/
: alcohol :21 percent
12,1*46
15,790
20,99*4
21,353
22, *462
6 1,329
6 7 ,56*4
32,571
89,670
2 ^ ,6 7 3
26 ,622
23,270
3 1 ,6 9 1
*41 ,06 s
3 9 ,93 s
*45,0*48
57,809
6 2 ,78 2
1 0 3 ,*490
1 1 0 ,6 3 7
87,259
91,752
1 1 0 ,58*4
10 *4,129
30,135
37,227
37,^31
30,9*46
3i,5te
2 7,763
7 3 ,0 5 1
7 3 ,0 9 7
*49,76*4
60,799
7 9 ,0 2 7
7 6 ,3 5 3
35,^19
*47,*48*4
62,118
*4/
5/
b[
5/
*4/
"
2, *4*41
2 ,5 2 1
3 ,^ 6 3
3,0*46
3,150
3,901
1 ,9^3
5 6 ,*46*4
73,5^5
6 8 ,19 6
102,120
9 *4,9*4*4
9 3 ,1+21
118,530
1,0 9 9
1,687
8,821
3,592
3,080
3,758
1 3 ^ ,1 7 5
9 1 ,3 0 5
95,229
103,930
1 0 3 ,371 *
l6l,6*47
Treasury Department, Division of Tax Research
Sources:
if
1/
ÿ
Annual Reports of the Commissioner of Internal Revenue ; Department of Commerce
and navigation of the United States.
Foreign Commerce
Includes small amounts with alcoholic content over 21 percent but not over 2*4 percent.
Includes vermouth produced at wineries but does not include substandard wines for use as distilling
materials.
Hot available.
Includes all vermouth.
b*
Table 2
Sparkling wines:
Premises operated, production, tax-naid withdrawals, and
stocks on June 3^» fiscal years 1935-19H-7
(Thousands of wine gallons)
:
T a x - p a id
w ith d r a w a ls
D o m e s tic
•
F is c a l
year
.
.
P r e m is e s
o p e ra te d
1/
1935
iH a
1936
13^
1937
1938
127
121
109
1939
H .
H
19 0
19 1
19^2
19P
lq H H
IQ H
I H
19^7
5
96
llg
107
I I 3
;
.
125
112
109
109
109
: P r o d u c tio n
:
/
2
311
k ik
U gl
Hgq
H
kS2
o il
33
1 ,2 2 9
1 ,0 1 7
1 ,5 1 0
1 ,5 5 1
,
S
z M l
2 02
*
T o ta l
2/
]
Im p o r t e d
:
T o ta l
:
R a tu ra i
:A rt I f ic ia l:
S to c k s
on
* J u n e 30
:
26
3 /1
551
570
1/
963
H
290
3/
3/
395
361
1/
3/
903
g 29
317
2 *7
2S0
567
5H2
1,063
H iq
3/
b
3HH
9SI
723
655
97g
1,212
1 , 10H
1 ,OU0
51
56
i,3 H s
1 ,2 5 5
1 ,2 2 3
Hi
65
1 ,7 p
37
3HO
H02
l.p s
1 , 32g
2 , 12b
1 ,9 5 1
S7S
1,263
1,796
1 , 51+9
26
g 27
1 ,5 1 2
I f
57
7*»
g
6
93
31
.5 1 2
HH
6
252
100
lo g
90
6
H H
53°
5S2
662
6U7
660
79H
1,050
gS 2
93b
1 ,1 3 2
1 ,2 2 5
1 ,9 7 5
Treasury Department, Division of Tax Research
Source:
Annual Reports of the Commissioner, of,Internal Revenue; Department of Commerce, Foreign Commerce
a n d Navigation of the United States,
1/ Represents wineries, bonded storerooms, and field warehouses operated during the period 19^3-19^7«
Prior to this includes only wineries operated. The number of field warehouses and bonded storerooms
operated varied from q to 22.
2/ Converted to wine gallons on the basis of 20 half-nint units to the gallon.
1/ Not available.
-
66
-
During the war home wine production was sharply curtailed, due largely to
the restrictions on shipment of California grapes to the eastern States,
hut this output is expected to revive hecause of the savings involved* l/
2*
Concentrât1on of production
(The domestic wine industry is, concentrated geographically-in two
principal sections, the eastern States and. California, -The wine produc
tion of California has for some time represented more than 90 percent
of the total« In the production of sparkling wine, however, this State
is less impor tant than Hew York»
" V"
Wine- production in California-is an integral part of the grape*
industry, furnishing the market outlet for nearly one-half of the grape
crop of the State on the average» The wine industry is geatly affected
by fluctuations in the supply of grapes and in the demand for table grapes
and raisins, as well as by changes in the demand for wine» Most of the
brandy produced is subsequently used for the fortification of wine. It
has been estimated that about 75 percent.of the producers of wine and
brandy grow their own grapes and.account for 50 percent of the produc
tion of wine and brandy* 2/ In acidifelons cooperative wineries owned by
vineyardists produce an estimated 25 percent* Thus only about 25 percent
of the production is represented by the so-called "commercial wineries",
which generally purchase their grapes.
In the past,wine production has been conducted on a relatively
small scale, but there appears to be an increasing concentration of
production, among fewer producers, £$/ Since. 1935 the number of wineries
has declined by about one-third* (Table l)
In 1939 the ten largest
plants produced about one-fourth of the value of products of the
industry* ; (Table 3) 2?or the same year thè value of products for 37*5
percent of the wineries was less than $20,000 and these wineries
accounted for only 3*4 percent of the total value of products* 4/ Later
ij ibid, pp*
9, 34*
2/ Committee for Reciprocity Information, Information and Views on Table
Wine« Sparkling Vine« Vermouth and Brandy. Vftno Institute et al, 19^6, p.7
3/ Drapes. Raisins and Wines, p. 225.
4/ Data for 1939 are from the Census of Manufactures. The number of
establishments reported by the Census is much smaller than the number
reported by the Bureau of Internal Revenue, due largely to the omission
from the Census of very small wineries and those producing distilling,
material for brandy. The only earlier data available are for 1935
when the 8 largest producers representing 11 wineries accounted for
nearly 38 percent of the total value of products for the industry.
(National Resources Committee, The Structure of the American Economy.
Part I, ’’Basic Characteristics," 1939, pp. 256-257). Production was
much smaller in 1935 and it is possible that the largest wineries
were able to resume production more rapidly than the smaller wineries
after repeal*
1
-
6?
-
Table 3
Humber of establishments producing wine and value of products
classified by size of value of products, 1939
%Jhie of
products
($000 )
5 - 20
2 0 -5 0
50 - 100
100 - 250
250 - 500
560 - 1 ,0 0 0
1 ,0 0 0 - 2 ,5 0 0
2 ,5 0 0 — 5 ,0 0 0
5*000 and over
Total
:
Estabiishmetjts
: Percent
. , t
: Humber r of« total
113
5S
M
k2
37^5
19.3
15.3
32
..7
io .6
-
1.
2 .3
1 .0
&
: 'value of products
Percent
* ■_ , ,
. Amount
:
: of total
$ 1 ,1 0 5 ,9 32
1,939,922
3 ,2 1 3 ,30 s
6 ,6^ 2 ,95 ^
1 1 ,259,6 39
it.U1 3 .2 5 3
U,20 6 ,97 ^
-
301
1 0 0 .0
$32,732,030
3^
5*9
$
9 .3
2 0 .3
3 ^ .3
13*5
12.3
'.1 0 0 .0
Treasury Department, Division of Tax Research
Source:
Hote;
Department of Commerce, Census of Manufactures: 1939.
Vol. I, pp. 192, 205 -206 ".
Does not include establishments engaged solely in
fortifying wines made by others, nor those bottling
wines not of their own manufacture.
- 6s information is net as detailed as that for 19 39 » Eata from the
industry, hovever, indicate that "by 19 U3 the ten largest wineries
in California had nearly 50 percent of the storage capacity for the
State# l/ Storage capacity appears to he »'relatively good index
of production, hut since the average price of California wine is lower
than for the country the concentration on the basis of value of pro
duction is probably somewhat lower# ¿J
An important development in the growth of concentration in the
California wine industry has been the purchase or lease of wineries
by the leading producers of distilled spirits, which occurred during
the war* As of December 19^+3 the storage capacity of wineries owned
or leased by four producers of distilled spirits was estimated to be
23 percent of the total of all wineries in California* 3 / Some of
the largest wineries are owned by cooperatives« In December 19^3
two of these accounted for over 11 percent of the total storage
capacity for the State* U/ The concentration of production on the
basis of number of producers is probably substantially higher than it
is on the basis of number of wineries, since some of the important
producers have more than one winery. Despite the apparent increase
in concentration, it has not yet readied a point where it has had a
marked effect on competition and the price structure in the industry*
3«
Competition and price -policy
Competition and price policy in the wine industry .have been condi
tioned to a substantial extent by the interrelationship between wine pro
duction and grape growing* Hot only has wine furnished a major outlet
for grapes, but it is also in the unique position of providing the
residual demand for grapes when the crop is large because it affords
a means of converting perishable grapes into a semi—perisheJble product. 3 /
1/ U. S, Senate, Hearings before a Subcommittee of the Committee on the
Judiciary on S* Res. 206 , 7 Sth Congress, 2nd Session, Part 2, p* 3 3 7 «
Data on total capacity figures, were obtained from Wine Institute
Bulletin, Ho. 3^0* April IS, I9 H 7 , p. 6.
2/ Department of Commerce., Census of Manufactures: 19^9. Vol* II, p* 225,
California wineries reported S7»l percent of the total wine output,
but only 7C,0 percent of the total value of the products*
1/ hearings on S* Res, 206 , p. 3 3 7 , and Wine Institute Bulletin, April IS*
19i*7, p. 6.
bj Ibid.
~
'
3 / In the view of the industry, "Wine and brandy are the 'salvage*
outlets for grapes that cannot find a profitable market as fresh
fruit or as raisins," (Committee for Reciprocity Information, Information
and Views on Table Wine, Sparkling Wine, -Vermouth and Brandy* Wine
Institute et al, 19 *+6 , p. 1 0 ,) Raisins also provide an outlet for
excessive supplies of fresh grapes to some extent.
1
-
69-
-
Fluctuations in grape production are relatively’large themselves
hut the fluctuations in wine production1 are even larger. , Over
the past ten years the changes' in' wine production were on the
average more than twice as large as’ the -changes in the grape crop,
and in the prewar period the difference was even greater. (Table 4)
The large fluctuations in output and competition-in the industry
produce a very unstable price structure. When output is excessive
prices fall sharply and distress sales are made by producers in a
weak financial position. XJ The Government, has taken certain measures: which have helped
to stabilize'the industry, but these'have principally related to
raisin products. In the years 193^~^939 the Ipderal Government
purchased a considerable proportion of the raisin crop* 2J In
1933 when there was an unusually large grape crop the Federal-’.
Government and the State.of California supported a program for turning surplus grapes into brandy which was to be held off the
market nntil conditions improved. ¿/- During the war the. wine
industry .did not experience excessive procuration, but-output in
19 i|6 was substantially larger then in any previous year and stocks
of wine increased considerably.
In addition to the wide variations in supply in relation^to
the demand for wine, competition has been influenced by the high
degree of integration of grape"growing and wine production. -While
there seems to be some tendency to segregate the two Qusinesses,
the industry■estimates given above show the.t in California, in
cluding- cooperatives, '75 percent of tho wine is produced oy growers
of grapes. Different typos of grapes may be used for different
purposes:
(l) wine only, (2; table grapes or wine, and (3) table
grapes, raisins or, wine. Thus although grapes may be produced
primarily for the table or raisin markets they may be .converted into
-wine. The grower—vintner usually views his business as.an integrated
unit from which ho can’obtain a larger return at certain times by processing, than by soiling his grapes. Tne investment required
1 / Grapes, Hal sins ■and Wines, p p . 2h9, 3oh.
■
65 -6 7 *
3/ Ibid., pp. 6 7 -6 S .
S/ In 19^2-1945 the crushing of grapes for wine was greatly
limited by Government conservation orders requiring almost
all raisin varieties to be dried into raisins, ("Grape and
-Grape Products," p. 7*) The Commodity Credit -Corporation
has discretionary authority to support grape and raisin
prices and in 19^7 invited bids for tne sale of rad sins.
2j Ibid., pp.
1
-
\
70
, • Table 4.
.
California grapes? Harvested.production, crush by
commercial wineries, and average price paid to
^fanners for grapes crushed by wineries,
1933-194?
•
Percentage increase
: Average
«
or decrease (-) over
Harvested • Crush by ? price paid ♦
previous year
commercial ; to farmers
Year * production^ •
wineries ? (per .ten) :Production,Ur" f B/ 00™ er"
(000 tons) ;
: cial wineries
• (000 tons)
i.
444
530
887
494
911
2J
!
•S
$ 16
10
17
19
2,531
2,228
2,250
2,547
3,160
862
712
996
1,120
596
2,789
2,514 ’
2,651
2,918.
2,876
790
858
1,170
1,652
1933
1934
1935
1936
1937
1,657 ’
1,700
2,194
1,714
2,454
1938
1939
1940
1941
1942
1943
1944
1945
1946
1947
M
-2*6 $
29.1
- 21.9
43 02
19*4 #
67,4
- 44.3 ■
84.4
11
13
13
20
30
•3*1 .
-12.0
•l.'O13 «2
- 15.2
5.4
-17,4
39.9
12.4
- 46.8
78
100
55
91
4/
29.1
9.9 :
5.4 •
10 a
- 1.4 ..
. 32.6
8.6
36.4
-, 41.2
-
Treasury Department, Division of Tax Research
Sources?
Production and crush? Department of Agriculture, Agricultural
Statistics, 1946. p. 191, and Crop Production. ■M1947 Annual
Summary,” p. 85, Average price? Department of Agriculture,
Bureau of Agricultural Economics,
XJ Average for different varietal types at first delivery point,
2/ Hot available,
3 j Hot yet available but is expected to be less than 1 million tons.
4/ Not yet available but is materially.lower than in recent years*
1
for a winery, however,, appears to "be substantial in relation to the
investment required for growing grapes, l/ The effect of fluctuations
in grape crops on wine prices might he modified to a considerable
extent if wine were aged as long as whisky. \ But prior to the war wine
stocks at the beginning of the season were generally less than sales
for the subsequent year. This indicantes that some wine sales are from
the current year’s production and would tend to reflect grape prices
for the preceding crop.
The competition which exists at the production level is reflected
in the marketing of wine. The sale of wine under producer brands
appears to be relatively smaller than for many consumer goods, including
•o the r alcoholic beverages. Some of the Larger wine pie s distribute, their
products on »a national basis through their own sales organizations and
some of the smaller producers have established markets for their branded
products. Other producers sell their wine to distributors who in some
cases purchase wine in bulk and bottle it themselves. Some of the
bottling is done in CaLifornia., but .the substantial. saving in trans
portation charges on bulk shipments favors bottlers in the large eastern
consuming centers. 2j In 19^-1, &9 percent of the interstate rail ship
ments of wine from California wap in bulk,, but this declined to 52
percent in 19 ^-6 . - 3 / Under the price ceilings established on wine it
had become profitable for producers to shift their sales from the bulk
to the bottled product.
'
*
'
-
1/ Crapes, Raisins and ¥ines, p. 225» In 1937 the cost of a winery
was estimated to be 11 cents per gallon of cooperage capacity for'
natural wine and 15 cents per gallon for fortified wine. Assuming
the average yield for the past ton years of 5 tons of grapes per
v acre and 100 gallons of wine per ton, the winery investment re
quired to handle the output of grapes from one acre would have been
from $50 - $75. According to information supplied by the Berkeley
: Bank for Cooperatives, in recent years the cost of wineries producing
fortified wines has ranged from $5 0 - |6 0 per ton of grape-crushing
capacity and approximates in many instances the investment in the
vineyard.
2j In 1937 the estimated cost of shipping wine from California to Hew
York in bottles was nearly twice a,s much as the cost of shipping
it in tank cars. (G-rapes,- Raisins and Wines, p. J>00.
)
3/ Wine Institute,’Wine Institute Bulletin Ho. 3 ^ > December $»• 19^7»
p. 23.
.;
;
"~i2~
iThe leading producers in the industry market "both natural and
fortified wineg under their "brand names while the smaller producer brands
generally are limited to natural wlhes* There is n o information oh the
total number of different brands competing at retail but the price list
of one State monopoly on December 1, 19^7 showed Ub. domestic brands of
natural wines and J8 domestic brands of fortified still wines* (Table 5 )
The leading producer brands are duplicated in each of the varieties of
wine. The range of December 1, I9 U 7 prices in this'State1s stores was
fairly large» from 55 cents to $1«^5 Per bottle on natural wines and
from 65 cents to $2*15 011 fortified wine* The number of domestic brands
offered in this State is now larger than before the war but the number of
imported brands has decreased. The number of brands available in many
stores in the license States probably is larger, and in addition to pro
ducer and distributor brands these stores may handle their own private
brands* It appears that the proportion of wine sold under private brands
was important before the war* 1/
As yet efforts to reduce price competition in the distribution of
wine have not been very effective. The State of California has supported
the advertising-of wine from contributions made by producers to the Wine
Advisory Board* This institutional advertising facilitates the advertis
ing of individual brands* There is considerable impetus for the industry
to develop in .this direction because of the almost universal prohibition
of bulk sales?to consumers by the various States« While this has the
effect off increasing the cost to the consumer and decreasing the market
for wine, 2j it tends to result in a more stable price structure* The sale
of wine in gallon and one-half gallon containers, however, does provide
a low-price outlet for wine* There has been some effort to place wine
sales under the Fair Trade Acts of.-the various States, but this does
not appear to have been very widespread because of the lack of concon—
tr.ation on producer brands and the relative unimportance of wine in total
sales of liquor stores* "Outside of California, it appears tha.t.only
a comparatively few wines have been placed under retail price maintenance."
U.
gj
Costs and prices
The-last published information on the cost of producing wine is
for 1939* For that year the manufacturers’ value of vine produced was
approximately $33 million, an average of a little over 30 cents per
gallon* U/ Grapes and grape products constituted the most important
l/ Department
of Commerce, Census of Business! 193°* Vo I . V, "Distri
bution of Manufacturers’ Sales: 1939*'’ P* 2 2 *
Direct sales to
retailers were nearly 20 percent* This does not cover sales to
bottlers, but on the other hand not all direct sales to retailers
. represent private brands..
gj Grapes, Raisins and Wines, p* 312.
3/ Federal Trade Commission, Report on Resale Price Maintenance, 19^5> P* ^ 1 •
Census of Manufactures: 1939, Vol. II , Part I p *
This figure
•is for all wine* The average for sparkling wine is much higher, •
amounting to about $2 per gallon*
- 73Table 5
W in e |i by types:
irumber of brands and price range in
Virginia State stores 1937* 193^ &nd 19^7
(b/5 que,rt sizes 1/)
■■■»r.iyf— nr»*11#-JT*
,-*n*>*»■’
*»
.Price range
Number of brands
'•Type
0
0
2.00 . 2.95
1.20
2.30
—
*35
*35
*35
*50
i.%
l.b5
1.00
i.b5
,60
*55
.60
.60
*75
*75
*75
*75
,50
,60
*bo
* bo
.bo
*bo
*b5
.60
1.65
2.15
1.00
1.20
1.10
w
.65
.65
.65
.65
1,00
.65
b.io
2. so
2.90
5.bo
b.io
2. SO
1,50.
2.30
1.65
1.S5
: .90
1.20
/90
„70
1.S5
1,80
5
6
$2 ,0 5
$1 .9 0
$2.05
1
2
l
l
3
1 ,6 0
1 .6 0
1*60
1.35
2.00
1.20
8
2
7
9
S
2
11
g
6
19
.go
.35
*73
,60
*75
.65
9
S
6
6
b
1
9
S
■71
66
65
Sparkling wines:
Champagne
5
Sparkling burgundy 1
Other
Still wine s(natural) :
Sauterne s
5
Burgundy
b
Claret
7
Other
7
Still wines
(fortified) :
Port
6
Sherry
8
Muscatel
1
Tokay
Vermouth
3
Other
-1
Total imported
bS
•7
1
6
6fr
1
b
.1
-
k
23
23
13
10
S
1
M
.75
1.00
.SO
.so
.6 5
,70
,60
.60
131
Imported
b
-
-
7y
.50
.bo
.bo
,bo
.brO'
.b5
.60
$1*50
v
Total domestic
$2,bo
3
->
Sparkling wines:
Champagne
Sparkling
burgundy
Other
Still wines
(natural):
Sauternes
Burgundy
Claret
Other
Still wines
(fortified):
Port
Sherry
Muscatel
Tokay
Vermouth
Other
July l6, :Oc t. l,':Dec. 1, July Ï6 . 1937: Oct'. 1, 1930: Dec, 1, 19>tf
Hi^h : Low : High : Low : High : Low
1937 : 19 3 S : 19^7
Domestic
” *' '
—
b .05
. 3 .2 0
"
3 *25
1 .6 5
2 .7 0
1 .7 5
1 .7 0
.so
i.b5
.80
1 ,1 5
3 .2 0
—
-
—
1 ¡¡Sj
1.85
5
x
7
2
b
7
-
6
12
2 .2 0
2.35
.SO
.so
.so
.so
2.15
2.30
1.00
1.15
2.90
4,70
1.85
1*95
5
|
3
1 .3 0
1 .7 0
1 .1 5
1 .7 0
1*30
1.70
1.00
1.70
2.00
1.S0
l.SO
1
l.SO
1*75
Treasury Department, Division of Tax Research
Source: TNEC, Investigation of Concentration of Economic Power, Part 6. uLiquor
Industry,11 March 1939, exhibit U3 3 , and Alcoholic Beverage Control Board,
Commonwealth of Virginia, list No, 113» effective December 1, 19^7*
l/ Where other sizçs were priced they have been converted to b /5 auart, Prices for
~ gallon sizes omitted.
1
-
t5
+
element of cost *and amounted to nearly 5^ percent of the value of the
product* Manufacturing salaries and wages amounted to only 8*5 percent
of .tip.©’value ;of -the product, ..These* costs do not include the cost of
"bottling, and 'since most wine under State requirements must he sold in
bottled form the cost to the distributor is much higher. In addition
most of the wine consumed has to be transported long distances to thè
eà'stem'maffcèt' frbm’California* • There••are no complete figures on
bottling posts, but seconding to information submitted by the industry
in 1936 the cost of bottling and casing wan equal to twice the price
of natural wine at the winery and about Ì50 pércent of the price of
fortified wine. 1/ ;The transportation cost on bulk shipments was from
one-third to one-half.the price at the winery. On bottled goods the
transportation cost" was twice that on bulk shipments.
¥ine *and grape prices tend to move together and producers apparently
gain little advantage from low grape prices. 2/ The limited price in
formation available* indicates that both wholesale and retail wine prices
declined sharply within a few years after repeal. 3J ¥ith the large
grape crops' in the latter part of the 1 9 3 0 *s wine prices remained at a ,
low level until well into the war period. (Table 6) Because of the low
grape prices measures.were taken in 1 9 3 ^ to divert grapes into the pro
duction of brandy to be withheld from the market. .The wartime demand
removed the surplus of earlier years and as the demand increased prices
rose very sharply. Except for 19^2 the supply of grapes was also at a
high level, but because of the demand for other grape products and
diversion of grapes to raisins under Government orders,, there was less
pressure on the wine 'ma rket as an outlet for grapes... .-Although ceilings
were imposed on wihe. prices during the war, producers, wore permitted to
raise prices to cover increased grape costs. Moreover, by shifting from
bulk to bottled sales producers earned much higher profits. Since-the
close of the war grape and wine prices have declined, but still appèa.r
to be above the prewar levels.
....... B.
Character of demand
Since the repeal of prohibition the pattern of wino consumption
has been greatly influenced by the limitation of sales' in', host States
to bottled wine, which soils for much more than the bulk product. It
appears that, the demand for low-priced wine, is now met to a considerable
extent by home;production. As in the case of othor alcoholic beverages
taste and -social considerations probably play the major role in consumer
preference for wine. .Ron-alcoh.olic beverages generally are much cheaper
than wine. Relative prices may play some part in consumer choice among
different alcoholic beverages* This may be most important in the case of
fortified wine. This type of wine is comparable in alcoholic strength
l/
Grapes, Raisins and -fines, p. 2Vf.
2/ IkiÈ* » P • 13 •
2/
I
ibid*.., pp*
307.
t
- 75Table 6
Annual average pi See of California new sweet wine in bulk,
1935-19*4-2, and p r.lces in selected months,, I9 H 6 and 19*4-7
Year and montl*
1935
; Price per gallon f.o.b, winery
$
1936
1937
1938
1939
I9 U0
19 U 1
I 9 U2
.l9Uf
M arch
’June
September
December
■19^7
March
June
September :
December
l/
.3 7
.35
•37
.32
.29
.32
.30
•35 2/
l.l6
1.23
1.23-1.75
1.37-1.5-0
1.00
.1+0 -*.62
.U0-.^9
.1+2 -. 53
Treasury Department» Division of Tax Research
Source:
1./
2/
1
Berkeley Bank for Cooperatives.
Federal excise tax deducted. Includes California State
Marketing Order assessment of 1-1/2^ per gallon after
October 2U, 1938.
From 19)4-2~19U5 ceiling prices were set by the Office of
Price Administration. In general increases were allowed
over March 19^4-2 prices by the amount of the increase in
cost of grapes. The uniform maximum price for California
sweet-wine, exclusive of Federal excise tax and California
marketing assessment, reached a peak of $1.^2 per gallon
in December I9 UU, (Maximum Price Regulation w j ,
Amendment 20.)
~ 76 to some types of mixed drinks commonly made from distilled spirits.
It accounts for about two-thirds of the consumption of commerciallyproduced wine.
In the forty years preceding *iforid War I'the estimated per capita
consumption of wine approximately doubled, if By 1939 the per capita
consumption, excluding home-produced wine, was about as large as the
estimated per capita consumption 29 years earlier when home production
was probably relatively small..
At. that time bulk sales were
not prohibited and only artificial or imitation wine was subject to tax.
From this it would appear that consumers reacted more favorably; to the
resumption of the sale of wine than to the sale pf distilled spirits ,
and beer, the aggregate consumption of which in 1939 did not exceed
the pre-prohibition level, Following bepealy the annual increases in
¥ine consumption-until 19^1 .were relatively much larger th^n the
increases in disposable income.
From 1935*^1°^0 the increase in
consumption amounted to nearly 100 percent, or three times the increase
in ..disposable income. (Table 7 ) The wartime disruptions which followed
make, it impossible to determine whether this indicated a rising trend
or the delayed readjustment of consumer patterns to legalized sale of
wine.. During prohibition the consumption of home-produced wine had
developed substantial proportions and at first the price of commercial
wine was high. Subsequently prices- appear to have declined rather
sharply and it;is possible that some of the increase in consumption was
attributable to reduced prices.
’
. After 19^0 wine consumption increased until 19^3 and then decreased
to near the I9 U0 level, despite the large increase in disposable income.
Consumption was undoubtedly restricted to some extent by limitations
on supplies. However, it appears significant that stocks did not decline
below'; the level of the prewar years la3° and l°Uo and remained about "
equal to annual consumption. (Table, l) . It is known that prices
rose, considerably, but since no reliable price series for vine.- is :
available it is not possible to determine whether changes,in wine consumption were, closely correlated with price changes. 1U
1/ Statistical Abstract, 19^-6, p. g6l,
2/ ibid.
----------*
v'
‘
Jl/ Disposable income represents income payments less personal taxes.
Unless otherwise noted', department of Commerce data, on income and
expenditures in this study are those issued prior t.o.the revisions
published in- ”l'iatiorial Income,” Supplement to Survey of, Current
Business, July I9b7.
f
1
^he maximum uniform ceiling prices established in June 19^5 were about
,.90 per fifth on natural wines and $ 1«30 9n fortified wines for
California vines at retail in eastern markets, or substantially more
than twice the minimum prices in Virginia State stores in lQlT-lP^S
f e d eral Register, Vpl. 10, pu. 7 W 1 et sea. Amendment Ho. 25 "to '
Maximum Price Regulation Ho. bU5*)
i 7? a
Table 7
Disposable incomet tax-paid withdrawals of vine and consumer
expend!tures for wine, 193 ^ -'19^6
- .^
Disposable income 1/
Year
k
Amount
(billions)
1935
$ 5 1 .0
56.3
1935
1937
193S
1939
19 U0
6 5 .2
6 9 .2
62.9
6 7 .7
72.9
133
19 Ul
19^2
191+3
19 HU
191+5
19 bG
gg.7
1 1 0 .6
12 H .6
137
a
139.7
1 U 6 .0 .
Tax-paid with&rawals
Consumer expenditures
:Percent
:Percentage
Percentage:
Amount : change
Amount »of dis- Per gallon
change
(millions ):posable
from
of wine
•(millions :
from
:income
tax-paid 2 /
preceding: of wine : preceding
i
year
year
: gallons) :
1 0 .U
15 ¿g
€ .1
- - 9.1
7 V6
7.7
2 1 .7
2U .7
1 2 .7
1 0 .3
1.7
U .5
$
$ SI
33
kS
60
67
67
77
90 •
102
113
9S
999U
1 U0 3 /
39
30
12
0
15
17
i
13
11 •
-13
1
- 5
l*
l*
Q
/
112
1% ‘
160
l6l
iSk
226
283
357
337
1&5
1+35
6U5
.1 6 %
*20
*22
*23
. .26
*27
.31
*3?
.32
.27
♦32
.31
M
$ 2 .^ 5
2*^3
2 .U2
2*39
2*^0
2.39
2.51
2.77
3 .i 6
3 .UU
b.kj
^.6l
Treasury Department, Division of Tax Research
Source:
1J
2f
1
Department of Commerce, press release of April
19^7 and Survey
of Current Business, May 1 9 *+2 , April 19^*» February 19^-S and
February 19^7. Disposable income and consumer expenditures are
from the series published prior to the revision given in Supplement
to Survey of Current Business, July 1Q^7~ Tax-paid withdrawals:
Annual Reports of the Commissioner of Internal Revenue.
Disposable income represents income payments less personal taxes«
Computed on rounded figures.
This figure may include a substantial amount representing additions to
dealers1 inventories during this period. Tax-paid ifithdrawals in the
fiscal year 19^6 were llU million gallons and in the fiscal year 19^7»
lOg million gallons.
Prices of wine began to decline near the end of the war when the
price of grapes fell and ceilings were terminated early in 19 ^6 ." -Taxpaid, withdrawals in I9 U6 increased "by about JO percent over 'I9 I+5 and
by about the same percentage over 19*40* It is likely, however, that
part of this large increase represented a readjiistment in wholesale
and retail inventories* This tends to be borne out by the large slump
which occurred in tax-paid withdrawals in 19 ^ 7 » when they declined to
about the 19*45 level. The average of tax-paid withdrawals for 19*46 and
19)+7 was only about JO percent above 19*J-0 while disposable income doubled
during this period. This represents a marked change from the rapid
expansion in demand just prior to the war, and may indicate that
increased prices have curtailed consumption substantially. Retail
prices still appear to be more than 50 percent shove the prewar level, 1/
C,
Outlook for the industry
Considerable uncertainty is involved in attempting to determine
what the future level of wine consumption is likely to be, lixcept for
I9 H6 the increases'over the high level reached in’19^0 have not been
large. During the first half of 19^7 tax-paid withdrawals declined by •
*+*4 percent from the corresponding.period in 19*+6, but toward the end of
the year had recovered to about the 19*46 level. In view of the smaller
wine crush in the fall of 19*47, however, dealers may have undertaken
to build up their inventories. With continuation of high levels of
income consumption is likely to be well above the average for the' years
immediately preceding the war, Since the close of the war large fluctuations in wine production
have again appeared. Production from the 19*46 crop was about *4Q percent
above the 19*45 crop. Production in the fall of 19*47 declined below the
level of. 194 -5 » and production from this crop appears to be somewhat less
than the .current rate of tax-paid withdrawals,' Nevertheless, stocks are
now. larger in relation to withdrawals than in most of the prewar years.
In the absence of crop limitations, production in future'years is
expected to average substantially higher than the prewar level, G-rape
yields have increased and acreage is slightly larger, 2/ ‘The supply
of .grapes for wine may also be increased by a reduction in the demand
for other grape products. The outlook for exports of raisins
and tabic grapes, heretofore an important part of the market for
these prodttets does not appear to be very favorable, 3 / Wine imports
1/ Based
on the prices of less expensive brands in Virginia State
stores, (See Table 5 )
2/ ’’Grapes and Grape Products,” p, 8» The high yields, hov/ever,
may not continue,
.2/
> PP* 9-10a This, however, does not take into account
possible exports under foreign aid programs.
- 79 -
increased substantially under the pressure of wartime shortages hut may
be less important in the future. 1j However, some stimulation of
imports is possible as the result of the recent reductions in import
duties and the currency revaluation by Prance*
Although growing concentration of production as'well as merchan
dising efforts designed to establish markets on the basis of brand
preference have developed in the industry, price competition appears to
be basically important; The effect of price competition on the industry
will depend to a large degree on future fluctuations in the supply of
wine. A series of years of unusually large production, particularly
with adverse demand conditions, might again reduce the industry to the
weak position which it experienced prior to the war and lead to severe
price competition.
Y.
Effects of the tax
A.
On profits
It is doubtful whether the increases in tax rates had a very signifi
cant effect on the volume of wine sales during the war. Supplies were
limited by restrictions on the use of grapes for making wine. Although
ceilings were imposed on wine prices, the ceilings established apparently
allowed prices to reach about as high a level as consumers were willing
to pay. This would indicate that prices exclusive of tax might have
risen somewhat more in the absence of the tax increases, particularly
in the case of fortified wines which wore-in greater demand because of
the shortage of distilled spirits and which experienced the largest tax
increase, nevertheless, the sales and profits of corporations in the
wine industry indicate that producers wore in a very favorable position.
Those data probably represent principally the larger producers, but it
is likely that the smaller producers did at least as well. Por 1939
mpre than half of the corporations filing income tax returns operated at
a deficit, while for 19'^3 end l^U^ more than three-fourths of the
corporations reported net income. (Table S) Eor all corporations, sales
had increased by about 250 percent from 1939 to l$fc and the- ratio of
net income before income taxes to sales rose from about
percent to
about IS percent. In 19^5 the industry experienced a decline in profits
from the high level reached in 19^+. Since wine is usually distributed
in conjunction with distilled spirits, there are no separate data, show
ing profits of wine distributors. However, the' aggregate profits of
liauor dealers increased greatly during the war, 2/
The increases in the tax rates on wine during the war wore relatively
larger than the increa.se in the tax on beer and generally larger than the
increa.sc in the distilled spirits- tax. However, the wine taxes before the
!L/ Ibid., p. 11.
2/ Part I, Table 8, p. 22.
1
Table 8
Wine producers: Dumber of corporation returns, compiled receipts, net
income or deficit, and income taxes, 19 38 -19^5
(Dollar amounts in millions)
Year
Returns with net income
Total
: Income
: Dumber : Total
' Income
]
Det
number
: compiled
: after
:
of
' income 1 taxe s 1/
of returns
; : taxes
: returns : receipts
103
$ 8 ,8
85
6 .2
-5
2 .0
71
^•7
>
1-7
2 .*-i-
6*4-
5.0
3-V
2.9
%
k.G
.3
5.5
23
1 .3
.2
6 .6
33
3.2
.2
>•7
52
*45.7
M
.1
193s
169 .
66
$ 2 3 .6
1939
I5 S
73
2 6 .8
1.7
•3
1
I9 H0
l60
S9
'30.1
2.9
•9
19 Ul
151
27
*4-7 .3
U.l
<19*4-2
159
115
6U .0
6 .3
19^3
15k
131
1 0 6 .2
1 6 .2
iÿ#
IU9
116
1 1 1 .6
2 1 .0
19 U5
IU 7
95
1 1 2 .6
1 1 .8
.8
$
Treasury Department, Division of Tax Res*3arch
Source:
1/
Stati sties of Income, Part 2.
Includili^ excess-profits- taxes.
$
Returns with no net income
Dumber : Total
:
of
: compiled : Deficit
returns : receipts :
1 0 .6
7 .1
.7 .
.k
$
.8
-
31
war wore much lower than, the taxes on other alcoholic beverages, "both
on the "basis of physical volume and in relation to price. .In 1938 the
tax represented substantially less than 5 percent of the eastern retail
price of most domestic still wines* l/ The Federal,tax .now represents
about 5 percent of the lowest priced brands on wines of lower alcoholic
content, but ranges from 10 to 20 percent on fortified wines. 1/
Wine prices have increased by much more than the amount of the
tax. The present tax on still wines containing not over l^f percent
alcohol is such a small proportion of the price that it cannot be con
sidered a serious deterrent to sales* The tax on wine of higher alcohol
content is a more important element in price, nevertheless, even for
this class of wine the tax is so much lower than the tax on distilled
spirits that some consumers may purcho,se fortified wines as a substitute
for distilled spirits. As the result of the profitable war years the
industry is in a stronger financial position than it was before the war.
However, prices appear to have declined by more than ^0 percent since
the end o f the w a r .
(Table 6 ) Although grape prices have also declined,
it is probable that profits have been reduced s u d stantially.
Because of the extreme fluctuations to which it is subject, the
industry’s position might be weakened in a relatively short time.
Since this would tend to stimulate price competition and distress sales,
it might be difficult under such conditions for the producers of wine
and the growers of grapes to shift the tax forward to consumers.
B.
On competition
To the extent that consumers would normally prefer wine to non
alcoholic beverages the present tax affects the competitive position of
the industry unfavorably. However, the present relationship in the
tax rates on alcoholic beverages tends to favor wine over beer and
distilled spirits. It Is not "clear whether this advantage is sufficient
to result in any substantial shift in consumption from the other
alcoholic beverages to wine. It is possible that relative prices may
not he an important factor in consumer choice of alcoholic beverages.
The existence of taxes on wine, however, favors home production of wine.
1 / Based on prices shown in Table 5 relating to bottles containing
~ 1+/5 quart. The price on larger-sized containers is usually sub
stantially lower. The tax is higher in relation to the prices at
which wine is sold on the West Coast, Moreover, the ratio will
-differ with the amount of taxes imposed by State and local govern
ments, or the amount of the mark-up made by State monopolies. For
information on State taxes, see Treasury Department Study, 11FederalState Tax Coordination,” July 19^7«
1
A specific tax usually affects some producers more adversely than
others. Although the higher rates generally apply to the more ex
pensive classes of vanes*- the specific.taxvtends to affect unfavorably
the producers of the lover-priced products in each class of vine-. ' Some
°f the larger producers market their products in different price ranges
and on tnc whole are less affected than the smaller producers who may
sell their product in bulk at low prices* A few of the smaller
•producers have been able to develop a market for higher-priced products
under their own brand names. The specific tax also tends to benefit
the higher-priced imported wines.
C . On consumers
Reported data on consumer expenditures for vine in relation to the
size of consumer incomes do not appear to be sufficiently complete to
afford a reliable indication of the distribution of. the tax burden, l/
The present tax is; somewhat lower in relation to. expenditures for highpriced wines tnan it is for low—priced wines. Tvo factors, however,
su-ggpst that the tail borne by consumers may bo higher in-proportion to
income in the upper income groups than in the lower income groups.
First, it is- likely that consumers in the lower Income groups may
satisfy their demand lor wine to a substantial extent from production
of wine in the home, which may bo as large as one-fourth of total con
sumption. Second, lower per capita consumption of wine than of beer and
soft drinks may indica.te that the lover -income groups- arc relatively r
less important consumers .of'wine.
Since wine Is not included in the Consumers* Price Index of the
Bureau of Labor Statistics, the taxes on wine do not affect the level
of this Index. • .
There is no clear relationship between fluctuations in the con
sumption of wine and changes in disposable income« Fluctuations in the
consumption of wine wore generally larger than corresponding changes
in disposable income prior to the vgrf Since that time, however, wine
consumption has not been closely related to changes in income. Further
experience is necessary to determine whether the tax collected from
this source would tend to fluctuate more or less than changes in
disposable income.
¿ 7 Bat a Tor 19^1 expenditures are reported in Department of Labor,
Family Spending and Saviiig in Wartime, Bulletin iTo, S2 2 , 19 U5 ,
p. 7 S, but it is indicated that in the survey consumers nay have
understated their expenditures for adcoholic beverages by. as much
as two-thirds. Expenditures for wine'as reported wore proportional
to the size of the family income for incomes under $5 ,0 0 0 .
VI.
Administration and compliance
The wine tax is collected from about 9^0 taxpayers, which is larger
than the number in either the brewing or distilling industries. The
Government supervision required in the collection of the wine tax is
greater than in the collection of the tax on beer but less extensive
than it is for distilled spirits. Nevertheless, since the wine taxes
are much lower the revenue from wine is not as high in relation, to the
cost of supervision as the revenue from the other alcoholic beverages.
The enforcement problems which arise under the wine tax are much less
serious than under the distilled spirits tax, but some evasion of wine
taxes occurs where wine produced ostensibly for home-consumption is sold.
VII*
Technical -problems
The principal technical problems which arise under this tax are:
1 . The determination of rates to be applied to
different types of wines.
'2 .
A.
Whether floor stocks taxes should be imposed
or refunds made on floor stocks, .if the tax
rates are changed,
Rates for different types of wine
There are substantial differences in the prices of different classes
of wines. These differences may account to some extent for the
differentiation in tax rates which has prevailed since 1 9 1 6 . The
differences have changed from time to time, but the rates on still wines
have oeen consistently lower than the rates on sparkling wines and still
wines of lower alcoholic content have been favored over those of higher
alcoholic content. The average prices, exclusive of tax, for the different
classes of wine show a similar relationship. However, there does not
appear to have been any clear effort to set the tax rates in such a way
that they would bear the same ratio as the prices for the different classes
of wine.
If the tax rates were to be made proportional to the average prices
for the different classes of wine, the present rates would have to be
changed considerably, In Eastern markets the present retail price,
excluding tax, appears to be very little higher on fortified wines than
on the lower—alcoholic— content table wines. _l/ The present tax ratio,
¿ / Based on prices in Virginia State Stores (See Table 5 ).
however, is four to one, respectively. There may he some basis for a
relatively higher tax rate op fortified wine .because its characteristics
are similar to certain distilled spirits, particularly cordials and
liqueurs, Natural wines are limited ipore largely to use as a mealtime
beverage, from which the .term 11table wine'* derives. The higher rates on
sparkling ,wine'S' than on still wines may have been influenced by the ’
former importance of imports of .sparkling wipes. At present about SO
percent of sparkling wine consumption is supplied by domestic producers.
The present tax on sparkling wines is approximately five times as high
as the tax on still wines, in terms of physical volume, but for the less
expensive brands of each the price is only two or three times as high.
B. -Floor stocks taxes and refunds
;
Since the enactment- of the. taxes' on,-wine- in 191^» increases in tax
rates have been'accomoahied by taxes on floor stocks under the Revenue
Acts of 191&, 19^1» 19^2 and 19^3* &o such t a x e s were imposed in
connection with the rate increases in 191^*» 191^» 1917 or 19^-0. If a
floor stocks tax is not imposed when the tax rate is increased, there
is incentive to accumulate stocks. Wine may be hold for long periods
without deterioration after it has been bottled. Stocks of wine in
relation to consumption are not as large as stocks of distilled spirits
but withdrawals in anticipation of a tax increase might approximate a
year's consumption. The advantage to be gained from withdrawing stocks
before the tax increase would depend upon the size of the increase. If
the increase were large, there would be a considerable loss in revenue
and substantial windfalls would be obtained by producers and dealers
best able to finance the tax payments involved.
The rates on wines have been reduced by the-Revenue Act of 1928
and by the Liquor Tax Administration:Act of 193^, but in neither case
was' provision made for refunds oii floor stocks tax-paid at the old rate.
Because of the prohibition of beverage sales in 1928, only small taxpaid stocks existed in connection with sales for religious purposes. In
1936 the reduction was only 5 cents per gallon on natural wines and 10
cents per gallon on fortified wines. The present law provides for
refunds on floor stocks to the extent of the reduction in the War Tax
Rate, ,i.e., the amount by which the rate was increased by the Revenue
Act of I9 U 3 . 1 / This is 5 certs per gallon on natural wines, 20 cents
per gallon on fortified wines and 5 cents per half-pint on sparkling
wines.
if Revenue
Act of 19^5, Section 3^2. The refund provision was made
permanent by the Excise Tax Act of 19^7.
The .importan.ee of a reftind on floor stocks depends upon the size
of the tax.reduction and the condition of the industry at the time of
the reduction, A reduction of 5 or
cents per gallon represents
such a small change in terms of the M-/5 quart "bottle usually sold, at
retail that it would not; necessarily he reflected in lower retail
prices until after retail tax-paid stocks had "been disposed of. A
substantially larger change in tax might produce a change in retail
prices before existing stocks were disposed of. Retail dealers’ inven
tories of still wines appear to represent about the same proportion
of sales as distilled spirits. Their floor stocks reported In 19^-1 and
I9 U 2 amounted to about lH percent of tax-paid withdrawals for the
respective years and in lP^U to about 17 percents (Table 9 .) Stocks of
sparkling wines are larger in relation to sales. (Table 10 ) In most
cases retailers do not deal exclusively in wines. Moreover, wine sales
are usually such a smaller proportion of a retail liquor dealer’s
business that the lower mark-up which might result from absorbing a reduc
tion in wine taxes probably woxild not -affect the dealer’s total profits
appreciably.
In the case of producers and distributors even a small
tax reduction would tend to be reflected in lower prices on their
sales of stocks tax-paid at the higher rate* Tax-oaid stocks of
distributors .were nearly., as large a's retailers’ stocks in relation to
sales at the time floor stocks tax returns were filed in 19^1, 19^2
and 19UU, but producers’ t-ax-oaid stocks were relatively very small.,
(Table 9)
The payment of refunds on floor stocks would involve about U00,000
returns, if all dealers filed claims for refund. Most of the returns
would be filed by retailers from whom returns are not required in the
collection of the tax. In addition to the problem of checking the large
number of special returns and preparing refunds, the administration of
floor stocks refunds would involve -greater possibili ty of fraud than the
collection of floor stocks taxes. The problems could be limited by
confining refunds to distributors and producers, who would tend to be
more adversely affected than retailers if refunds were not provided.
In case a reduction in wine taxes occurred at the same time as a reduc
tion in the tax on distilled spirits, both taxes probably should be
treated in the same manner* Most dealers in distilled spirits handle
wine, although all wine dealers do not sell distilled spirits.
-
26
Table
-
9
;
.
Still wines: Tax-paid floor stocks in possession of producers
and distributors on date of imposition of floor stocks taxes
under Revenue Acts of 19^-1-19^3 l/
(In thousands of wine gallons)
: October 1, : November 1 , : April 1,
: • 19 IA
:
19^1
: * 19^2
Stocks .
Retail dealers
Wholesale dealers,
including importers
Winemakers, rectifiers, etc.
Other
Total
Percent of total held by:
Retail dealers
Wholesale dealers,
including importers
Winemakers, rectifiers-,, etc.
0 ther
Total
Tax-paid withdrawals during calendar
year*
Stocks as a percent of tax-paid
withdrawals:
Retail dealers
>
Wholesale dealers,
including importers
Winemakers, rectifiers, etc.
Other
Total stocks
1 3 .6 2 7
1 5 ,OU6
1 5 ,6 2 2
12,125
13,135
1 ,2 0 3
lUS
1,0 2 5
2 ,1 ^
13 ,069
92 I
I67
M3
29,2^5
2 7 ,1 6 3
31
$
U 7 .9
5 2 ^ 1°
Ul.g
3.5
kj.s
k.b
.5
6 .2
3.3
,6
1 0 0 .0
1 0 0 .0
1 0 0 .0
9 2 ,^ 22
110 ,0 2 9
9 ^ ,0 3 6
5 O .2
UU „9
1 3 .s
1 2 .U
i.2
.2
2 7 .6
$
2/ ■
2j
13-7 f»
1 6 .6
1 1 .9
1 .0
1 .9
1 3 .9
1 .1
.2
22.5
2/
2/
3 I.7
Treasury Department, Divi sion of Tax. Research
Source: Unpublished data of Alcohol Tax Unit,'Bureau of Internal Revenue.
1/
2/
Includes vermouth
As percent of domestic withdrawals only.
fo
2/
Z]
Sparkling wines: Tax-paid floor stocks in possession
of producers and distributors on date of imposition
of floor stocks taxes under Revenue Acts of 19'Ul-19U3
(in thousands of half-pint units)
-
»October 1, îNovember 1,:
: . igl+1
:
19 H 2 . :
Stocks:
Retail dealers
Wholesale dealers, including
importers
Winemakers, rectifiers, etc.
Other
Total
Percent of total held by*
Retail dealers
,Wholesale dealers, including
importers
Winemakers, rectifiers, etc,•.Other
Total
Tax-paid withdrawals during
calendar year.
Stocks as a percent of tax-paid
withdrawalsJ
.Retail dealers
Wholesale dealers, including
, ■ importers
.Winemakers, rectifiers, etc.
Other
Total stocks
April 1,
19HH
7,235
7,223
1 1 ,3 5 s
6,121
269
1
6 ,9 56
310
H90
: 5,52^
■ SO
l6
1 3 ,6 2 7
lU ,980
1 6 ,9 7 8
5 3 .1 $
Us. 2$
6 6 .9$
HU .9
H6 .H
2 .1 - •
3*3
32.5
«5
. >1
2 .0
'
.*
1 0 0 .0
1 0 0 .0
30,435
18,355
3 0 .0
1.5
*
±f
1/
6 6 .7
1 0 0 .0
2
B7633
3%«3i
3 3 .3 ^
3 6 .9
l.s 1 /
2.9 1/
IS „6
•3
79*n
57*3
.1
Treasury Department, Division of Tax Research
Source:
Unpublished data of Alcohol. Tax Unit, Rurnau of Internal
Revenue,
1/ As percent of domestic withdrawals only.
* Less than „05 percent.
ïf
if
- gg PAEUP IV
-
Excise Tax on Rectified Spirits and Wines 1J
I * De sc ription,of the tax
The tax applies generally to the purifying or
mixing, of distilled spirits or wines. The tax is
to the gallonnge taxes applicable to the production
and wines. It is levied on the basis of the proof
refining, or the
payable in addition
of distilled spirits
gallon. 2/
The principal exemptions provided under the tax are;
1.
G-in produced by the redistillation of neutral
spirits over juniper berries or other aromatics.
2.
Cordials and licpieurs made from spirits and fortified wine
3.
Wines which are mixed or blended solely for the
purpose of perfecting them- according to commercial
standards.
U.
Blends of straight whiskies aged for not less than
four years or brandies aged for not less than two
years, ¿/
5-
The extraction of water from high-proof spirits to
produce absolute alcohol.
The tax Is paid by purchasing stamps to be affixed to the. packages
of products rectified and is payable upon removal of the product from
the rectifying process, 1 ,
,
II.
Changes in tax rate
The rectification tax wa.s first imposed by the Revenue Act of 1917,
at the rate of 15 cents,, per proof gallon, effective November 2, 1917*
The rate was increased to 30 cents per proof gallon by the Revenue Act
of I9 1 S, effective February 2-5» 1 9 1 9 » and has not been changed since.
¿7 lu addition to the excise tax certain special taxes are imposed
on rectifiers, but these e„re not considered in this analysis.
2/ The proof gallon or gallon of proof spirits is ono "which contains
one-half its volume of alcohol of a specific gravity of ... (.7939)
at sixty degrees EaJhrenhei tn (internal Revenue Code, Section 2809).
3/ Provided the product is not reduced below 90 proof and no coloring,
flavoring matter or substance other than pure water is added.
- gQ III. Revenue collections, 195^-19^7
•
Collections from this tax are small compared with the revenue
from the taxes on the production of distilled spirits and "beer. How
ever, for the fiscal year 19^+7 the yield of the rectification tax was
nearly as large as the revenue from wine taxes.
Excise tax collections, fiscal years 1936~19^7
'
( In millions)
Ei seal year
■ 1936
1937
1933
1939
19 ho
19 S 1
IV.
9
]
Collections
[ Fiscal year *
Collections
$ 7 .9
1 1 ,0 .
1 0 .s
19^2
19 H3
i9 hh
19 U5
i9 h-6
19^7
$ 1 7 .2
IS. g
IB.9
32,5
hi. 9
U*5
1 0 .7
11*9
1 3 .5
Economic "background of the, industry
What constitutes rectification isHletermined "by a number of
technical tests, hut in general it consists of changing the composition
and character of the products. 1/ In the fiscal year 19h-7 nearly 90
percent of the products produced "by taxable rectification processes
consisted of whisky. (Table, i) Host rectified whisky is produced by.
mixing imaged spirits with aged whisky to obtain a blended whisky or
spirit blend. A smell part consists of mixing different whiskies that
cannot be blended free of the rectification tax. The principal remaining
rectified products are gin, cordials, liqueurs and brandy. Although
the law provides for exemption ox distilled gin from the rectification
tax, a considerable amount of gin is produced by other processes to
which the tax applies.
Prior to prohibition as much as two-thirds of the tax-paid, distilled
spirits produced in this country wore rectified. (Table 2) In the early
if The
internal Revenue Code, Section 325^(g) provides: "Every person
who rectifies, purifies, or refines distilled spirits or wines by
any process other than by original and continuous distillation from
mash, wort or wash, through continuous closed vessels and pipes,
until the manufacture thereof is comolete--- shall bo regarded as
a rectifier ---
1
-
90
-
Table 1
Production of rectified spirits and
wines by types, fiscal years 1936 -** 1947
:(Thousands.of;proof gallons 1 j)
Fiscal ♦
year [
Total
1936
1937
1938
1939
1940
1941
32,449
,44,311
43,56$
43,401
47,657
-; 54,158
1942
1943
1944
1945
1946
1947
'
: Whisky
;*:
:
’ -*j■■
67,771
76,125
-67,686
. 118,863
. 150,879
148,560
21,727 Vir
31,587'
32,676 •
33,593 >
37,977
44,317
C-in
:
6,767
8,148
7,664
7,232
6 ,66.6
6,765
55,962
7,598
2,965
60,7.95
898
57,862 ‘ ‘
7,058
101,645
124,727 '
11,498
130,701 1
10,547
Cordials
and
liqueurs
3,118 ’•
3,813
2,722:
2,-193
2,438
2,542
3,228
3,9663,985
6,687
11,309
4,546
: Brandy
93
79
34
58
74
185
366
1,362/
1,515
1,677
1,942
1,678
,f
;Other 2/
§
744
684
465
326
301
349
617
1,038
3,425
1,796
1,403
1, @89
Treasury Department, Divlsien of Tax Research
Source:
Annual Report of the Commissioner of Internal Revenue, fiscal year
1947. p . 179*
1/ The preof gallon or gallon of proof spirits is one ftwhich contains one^
half it si volume of. alc.ohol of a specific gravity cf... („79 39 ) at
sixty degrees Fahrenheit” (internal Revenue 'Code. Section 2809). : •
2/ Includes rum, wine and a number of Miscellaneous products.
1
- 91 Table 2
Domestic distilled spirits: Tax-paid withdrawals
amount used for »rectification, fiscal years 1912-1918, and 1935-1
':
j
:
Fiscal
year
T • Used for.
Tax-paid
withdrawals 1 / : rectification 2 /
:
{Thousands of tax gallons 5/)
1912
1913
1914
1915
1916
1917
1918
; 135,544
142,895
138,841
123,861
135,856
164,292
90,088
92,014
94,174
91,810
78,619
83,999
99,050
49,781
1935
1936
1937
1938
1939
■■ 1940
1941
1942
. - ... J943
1944
1945
• 1946
1947
75,074
100,383
23,669
32,817
45,249
43,988
43,683
47,581
54,509
,
.
.
,
1 2 0 ,0 1 1
114,926
114,578
128,326
130,552
144,208
136,837
90,464
142,331 '
178 ,131
173', 505
?
J
Percent of
withdrawals
rectified 4/
67.9
65*9
-
68 ,0 21
.71,021
57,641
110,364 .
147,450
146., 679 #
6 6 ,1
6:3.5 61.8
60*3
55*3 >
t
-
31.5
32.7,
37.7
38.3
38*1.
37.1
- 41.8
47.251,9
63.7
; ' ‘ v77.5
82.8
84.5
P? ' ■
Treasury Department, Division of Tax Research
Source: Annual R ports of the Commissioner of Internal Revenue.
1 J Includes tax-paid alcohol used for non-beverage purposes, not reported
separately* The amount so used has probably been between five and seven
million proof gallons since 1935»
2 / Includes imported spirits for the years prior to 1944, not reported
separately» It is believed that the amount of imports included in those
years, however, was relatively small compared with amounts excluded for
the years 1944-1947.3 / A tax gallon for spirits of 10 Q proof or over is equivalent to the proof
gallon* For spirits if less than 100 proof the tax gallon is equivalent
to the wine gallon. Spirits used for rectification for theyears 19351947 are reported in proof gallons. The proof gallon or gallon of proof
spirits is one “which contains one-half its volume of alcohol of a
specific gravity of •,• (.7939) at sixty degrees Fahrenheit♦
4/ Computed on unrounded figures.
1
'.
,
92 - -- ■:
•,
; ■;
. •*
years following repeal.the proportion was only about one-third.. - The
proportion increased somewhat prior to the war hut during, the- war the
production of. rectifie d whisky was greatly.stimulated by the limit a- *
tions on the production of whisky. In the fiscal year'19^-7 the‘pro- ’ 1
portion of distilled spirits rectified reached a peak of nearly 85
percent. (Table 2 )
.
:
'
■
The number of rectifiers, is larger than the number of distillers
producing spirits from grain. However, the number now is much smaller
than it ,was prior, to prohibition and there was a decrease of Ho per
cent between 193^ and 19^-• l/ Shortly after the resumption of legal
sale of beverage spirits all;of the largest distillers .engaged in
rectification. Many of the smaller distillers, do not operate
rectification plants. In the fiscal year 19^7 the- four’largest dis
tillers accounted for nearly 80 percent of the.rectified whisky bottled. 2 /
The future■importance o f •rectification-is difficult to predict.
The predominant sale of whisky blends since the early war years may
tend to have a lasting effect on consumer tastes. Prior to about 19 U0 ‘
when stocks of U-year old whisky--were limited a considerable amount
of whisky less than four years old was marketed as straight whisky. •
The availability of aged whisky tends to result in larger ‘sales of
blended whisky because by using a. substantial proportion of unaged
spirit s, the blended ..product can. be sold at a price substantially below
the price of straight whisky which has. been aged two or three years.
Consequently, significant changes in the supply of aged whisky are likely
to result in changes in the proportion of whisky rectified.
-V .. Effects of the tax '
1
The present rectification tax of 3^ cents per proof gallon is only
a little more than 3 percent of the-present tax of $9 per proof gallon '
0Ii the production of distilled spirits. The rectification tax is a"
still smaller percentage of the retail price, of rectified,spirits. Under
the present ratio between the rectif,ication tax and the production tax
it is doubtful whether'the sale of rectified products is affected
appreciably compared with non-rectified products. Under the prewar ratio,
when the rectification tax was about 15 percent of the production tax,
the production of rectified spirits may have been restricted to some
extent by the tax. ¿/
¿7 Annual Report's of, the Commissioner of Internal Revenu e .
2 /. -Unpublished data of the Bureau of Internal Revenue 7 ■
1/ The ratio of rectified gin (taxable) to distilled gin (tax-exempt).'
.is, now somewhat higher than it was prior to/July 1 , I9 U 0 when the
".tax on distilled, spirits was $2.25 per proof gallon, The relative
increase in rectified gin, however, m a y b e due to other'factors'. 1
1
- 93 Thè imposition fai à. tax on rectification tends to reduce the relative
price difference between the lower and the higher priced distilled spirits.
Most whisky subject to the rectification tax is lower priced because of
the large proportion of low cost unaged spirits. The rectification tax
by falling more heavily on the lower priced products adds to the regressive
effect of the production tax on distilled.spirits,'which is. .imposed on a
specific basis, if From the point of view of the consumer, it would be
more equitable, in the case of whisky, to place the tax on the non-rectified
product. The considerations which led to the taxation of rectified spirits
are not apparent from the hearings and reports at the time the tax was
enacted, 2 /
If the rectification tax causes a shift in consumption away from
rectified products, it affects some groups in the industry more than others.
At the present time almost all (over 9^+ percent) of the whisky sold by the
larger companies is rectified. About JO percent of the production of the
remaining companies is rectified, but a number of the smaller companies
produce no rectified products.
A rectification tax also involves a certain amount of discrimination
in borderline cases. An insubstantial difference may determine whether,
the tax applies or not. This.is illustrated by the dividing lines on age
and proof provided under the lav; with respect to brandy and whisky. More
over, the addition of a slight amount of coloring would, make the product
taxable, although it may not be sufficient to affect the designation of
the class and type of product under provisions of the.Federal Alcohol
Administration Act. There arc also differences in the treatment of wine products according to the process used,
V I . Administration and compliance
Certain problems arise in the administration of the rectification tax.
Most of the work.involved at present in the supervision of rectification
plants, however, would continue in the absence of a rectification tax.,
This supervision is necessary to protect the revenue from thè basic produc
tion tax.- Similar supervision is required at tax-paid bottling houses,
where spirits are'bottled without rectification. The principal .problems
created by the rectification tax, both i’5r taxpayers and the Bureau, relate
to the determination of whether a process is taxable or not. Taxpayers
must submit information regarding their formulae and processes to the Bureau
of Internal Revenue and provide supplemental information when any change is
made. The Bureau has to review this information and in some cases make
ehemical tests in orde'r, to pass upon the taxability of the process.
1/ See p. 25 supra.
'
~
. ~ '
~
2/ It may be assumed that revenue considerations were of some importance,
the yield of the proposed tax of 15 cents per gallon being estimated at
from $5 "to $7è million. (House of Representatives, Report Ho. H 5 , 65 th
Cong,, 1st Sessr, p. 55» end Senate Report Ho, 103, p. ~[0.) Tn*the hear
ings the tax was strongly opposed by some members of the. industry. (Hear
ings and Briefs before the Committee on Finance on K,R, U280, 6 5 th Cong.,
1st Sess,, p . 93•) In the hearings on the Revenue Act of 1 9 1 6 , a member of
the industry indicated that a rectification tax had been suggested in the
pa,st to coyer the cost of supervision by the Bureau of Interna.! Revenue,
but that since then all gauging and stamping at rectifying houses had been
transferred to the rectifiers, (griefs and Statements filed with the
Committee on Finance on H.R. 1 6 7 6 3 » bU'th CongB, 1st Sessf, pp, 179-162.)
1
PART V
1*
-
Comparison of Taxes on Alcoholic Beverages in
the United States, Canada and United Kingdom
^imitation on comparisons
;■
International comparisons of excise taxes present numerous
difficulties. The form in which the taxes are imposed may not he
the same for each country, the products taxed may not he strictly
comparable, while differences in internal prices and consumption
patterns prevent an accurate indication of the relative burden of
the taxes compared, In generad, the taxes in the three countries
applicable to alcoholic beverages are imposed on the finished
product# In some instances, however, it has been necessary to
derive the tax for the finished product from the tax imposed On
materials used in order to place the taxes of the three countries
on a comparable basis#' Where there are a number of rates of tax
reflecting minor variations in the products, comparisons have been
limited to the principal classes of products#
With these limitations the comparisons presented below can be
used as an approximation of the taxes imposed on alcoholic beverages
by the central governments in the three countries. Customs duties
have not been considered excent where a substantial portion of
the product consumed is imported. The comparisons presented do
not take into account State excises and sales taxes in the United
States , Provincial sales and excise taxes in, Canada, the Canadian
Dominion manufacturers1 sales tax of 0 percent, and the British
Purchase Tax, Uo attempt has been made to compute the burden of
occupational taxes or license fees on producers and distributors#
Conversion of foreign taxes to United States dollars has been made
on the basis of official rates of exchange# 1 J
1
Types of taxes levied on alcoholic beverages
A,
Canada *
*
" V' ,
The Canadian excises on alcoholic beverages, as in the United States
ape imposed at specific rates without reference to the price of the
products. However, in the ca.se of beer two different methods of
taxation are employed depending upon the materials used. With this
exception the statutory rates are comparable with those in the
United States, The present rates are as follows;
1/ Theofficial rate on the British pound is $U*03 j but for convenience
conversion is made on basis of an even $U,0 0 , Since the official
rate of exchange on the Canadian dollap is at par no conversion is
necessary in this case.
- 95 -
Amprxit of
">
’ 1 -,/
..Ip. Canadian
units
Distilled spirits (proof gallon)
General rate
Canadian brandy
Wine (gallon)
Still wine 'containing not morè
than UO6 proof
Sparkling wine ;
In United Stati
units b/
.$.1 1 .00 . .
9 .OO ;
Beer ',’
Brewed ip whole or in part from any
substance other than malt (gallon)
Malt (pound)
Malt syrup cj‘
(pound)
'i.•.
,¿
tax a/
$ 8 ,0 3 ;
6 .5 7
p, . .•••" ’•
.
, f. *%>
.. ‘
.lé:‘:.
«24
-, . 37.
.. *16.,,
\
*24 . ,
' s\
, “ f
1. . ’ 1
' : * 5 0 .'
■,
2 .5 0 ,
SU'
- ,2 . 0 8 "
Distilled spirits and deer; 7 George ITI, chapter 9 > An
Act to Amend the Excise Act, 193^?. Seq* ,vUl and,p*r *97*»; *
■
-Wines; Excise ITax Act, ,19^7,. Sec. 8 3 (a) and. ,(b)*..
■
aj Undpr -Cs.naàlah "law* diétilled spirits and deer '.are.,sudj'ect to ,.
nexciseduty ,H while wine, is subject to excisp .
t
a
x
*
;
d/ The United States proof gallon is equivalent to #73 Canadian.
proof, gall on* The Uniteci States gallon for .wine and deer is , j
equivalent ip *833 Canadian gallon* The Canadian- dollar .has .
de eh Converted, at par’., .
‘ >s.'. ; ■. ...
,
of ®he rate on imported malt syrup is UO cents per, pound* , j
* ..
Sources:
S*ipqe. the Canadian.' excise on spirits yaries with- the proof of
the product, it may be compared with the United Stales tax after allow
ance for the differences iti the content of a gallon and the standard
of proof« 1J The general rate is probably fairly representative iof .l/
the tax paid, as Canadian orandy constitutes only a small proportion of
the spirits consumedo Zj
9r
,■Beer produced from grain,and malt .in Canada appears, to. be comparable
with thè "deer generally produced in the United. States* However,.the
excise oh this type of leer is higher than on-deer produced from .malt-or
malt syrup without other grain materials. The. most common -type of beer
ly The Canadian standard proof is 57.*-l percent alcohol -by volume comnared
with 5 C percent in the United Stales«
2/ Distilled spirits used for non—beverage purposes in Canada are
•“ taxed at 4rat;es ranging from 1 5 -cents to- $1*50 per Canadian' proof
f^l—bn ^ cents, .to $1.10 perv.United States, proof gallon* depending
.the purposes... for, ..which, they are used*
. ...
- ■
1
- 96 -
ixi Canada appears to be that produced from malt alone, utilizing
the equivalent of 1.75 pounds of malt per United States gallon, l/
On such bner the excise would be 28 cents per United States-gallon
or $8.68 per barrel of 31 gallons.
•.-'
• '- .
The Canadian excise on still wine is the same rate for
different degrees of alcoholic content. The maximum strength to
which a wine may be fortified is Uo degrees Canadian proof spirit, 2J
This is equivalent to 22.8 percent alcohol by volume, or slightly
higher than the alcoholic content of most of the fortified wine
consumed in the United States.
The Canadian tax on sparkling wine makes no differentiation
between artificially carbonated and natural wine.
B,
United Kingdom
As in the United States and Canada, the British taxes are
imposed at specific rates without reference to the price of the
products. Oh spirits and beer the taxes are shown only for
domestic products, which represent most of the consumption. 3/
Customs duties on imported spirits and beer differ depending upon
the origin and the typo of product. Since the consumption of wino;
in each of the three categories, domestic, Umpire' and non-Empire,
is substantial, however, the rates are shown for each of these
products, bj The. rates on the principal types of alcoholic
beverages consumed in the United Kingdom arc shown below, on the
basis of the now rates announced by the Chancellor of the Exchequer
on April 6, 19^+8, While in most causes the rates were increased, :
lower rates were provided on some imported wines in accordance with
the Geneva trade agreements.
l/ Based on information received from the Commissioner-of Excise
in .February 19*+3* The proportion may have changed since -that
time.
-.
2J Circular 1'To. 220-C, 2nd Revision, September 8, 193^.
3./ ^ * Eindlay Shirras and L. Eosta.s, The Burden of British Taxation,
Cambridge, 19^3, pp. lUU, 1^5.
bf Ibid., p. lUO.
1
- 97 Amount of tax
Impi3 rial 1gallon
T
Jst
d
s
Distilled .spirits, including cordial s
and liqueurs (proof gallon)
Beer
United States
gallon a/ .
10
10
10
$ 3 O. 7 S
0
0
5
•S3
0
0
2
.0 3
1
1
2
10
6
6
3 «75
5 .OS
- i-
3
0
3-S3
2
0
0
6 .6 6
0
u
•2
j
k
1
6
.56
•25
1
5
0
4.17
2
10
0
S.33
2
.69
b/
tforts of a specific gravity
of 1 0 2 7 ° or loss
Each additional degree over 1027
Still wines
Domestic
Hot exceeding 2J° proof
Exceeding 27° proof
Imported, Empire products
Hot exceeding 2 7 ° proof
Exceeding 27° proof and not
exceeding U2 Q proof
For every degree or fraction
thereof above U 2 °
Bottled, ‘additional duty
Imported, non-Empire products
Hot exceeding 25 ° proof
Exceeding 25° and not exceeding
U 2 ° proof
For every degree or fraction
thereof above U 2 °
Bottled, additional duty
f\
0
0
1*
2
6
Sparkling wines c/
Domestic
Imported, Empire products
Imported, non-Empire products
Source:
1
1
JU
s
15
17
6
6
6
^ .7 5
5.91
6 .2 5
Financial Statement, (19P4-U9 )
a/ The United Sta.tes. wine gallon is equivctient 1jO .833 Imperial gallon
and the .United States proof gallon is equivalent to .73 Imperial
converted to dollars on the basis
proof gallon. British currency <
of $4 to the Pound.
1b/ The duty is imposed on the oasis of a "barrel of 3^ Imperial gallons
cf The duty on sparkling wine is the sum of the duty on still wine and
an additional duty for sparkling wine. For convenience the two
duties have "been combined. It is assumed that the duty on still
wine of lower alcohol content is applicable to sparkling wine.
1
The standard rate on domestic distilled spirits is applicable to
spirits which have been warehoused, for not less than -3 years!' Immature
spirits are subject to an additional duty, 1 / It has been assumed that
most of the spirits consumed have been aged for 3 years or more. 'Since
the excise varies with the proof of ..the spirits it may be compared with
the United States and Canadian taxes by making the necessary allowance*
for differences in the content, of the gallon and the standard of proof. 2 /
Inasmuch as the tax' on. beer varies- with the specific- gravity of
the worts, _3y the rate; would depend on the character of beer selected
for comparison. Apparently the worts used in beer consumed in the
United States have- a higher, specific gravity on the average than the
British. Fpr the typical United States beer the specific gravity of
the worts would be about 1055 degrees. For such beer tho British tax
would be $1 .6 9 per United States gallon, or $52.29 per barrel of 31
United States gallons. However, the .average gravity of beer consumed
in the United Kingdom in 19^-0-19^1 was 103$ degrees. Hf The tax on
such beer would be $1.17 per United States gallon or -$3 6 .1 3 per barrel
°i’ 31 gallons. Since it ajopear-s to be representative of the tax paid in
tho United Kingdom it probably should be used for comparative purposes.
On the oasis of prewar information about 50 percent of the wine
consumed in the United Kingdom was obtained from non-Empire sources and
the balance about' equally from Empire and domestic-production.
•
l/ Thirty-Eighth Report of' the Co m iss! oners of His Majesty* s Customs
and Excise for the year" ended 3~lst "March 19^7. p p .- ■%. 3 7 ", Ivhere~
duty-paid spirits have been used in the .manufacture of recognized
medical preparations or for scientific purposes, repayment is' allowed
under Section h of the Finance Act, 191$* of any duty paid in excess
of that in force before 191 $, when the ba,sic rente was lUs, 9 d. per
proof gallon. A corresponding reduction of duty is made in- respect
of spirits contained in imported medical preparations. Bonesticadly
produced spirits usod for Industrie,! or scientific purposes, or for
domestic heating, cleaning, etc., are generally exempted from duty,
while imported spirits used for such pirrposes in some instances .are
subject to a snail customs duty. :
2 / The British standard of proof is 57* 1 percent alcohol by volume
compared with 50 percent in the United Ste„tes.
3/ The wort is the liquid obtained after the grain has been converted
to starch but before fermentation of the mash. It is assumed that
approximately one gallon Pf beer is obtained from a gallon of worts.
bf Shirras and Rostas, op. pit., p, llU.
5/ Report of the Comissioncrs, op. cit., pp. 5 7 - 6 6 .
- 99 ~
However, it appears that the proportions were not the same for the
different classes of. vine. Information on domestic still wine is
not available according to alcoholic content. I-Ios.t of the imported
still wine of the lowest alcoholic content was obtained, from. nonEmpire sources-. Ah average of the domestic and non^Smp'ire rates
for these products, or $3-9^ per U. S. wine gallon, is assixmed
to be representative of the tax on this cla-ss of wine. 1 / In the
case of sweet or fortified wine it appears that about two-thirds
of the imports was non-Empire and the balance Empire. On.the
basis of these proportions the average tax would be $7*77 per
U. S,. wine gallon for this class of wine. Since imports of still
wine in bottles are relatively small, the rate for bulk imports
is used.
As in the United States, sparkling wine represents a very
small part of total "ine consumption in the United Kingdom. Since
most of it is imported from non-Empire sources, the full rale of
$6*25 per U, S. wine gallon is used.
Ill.
Comparison of taxes for selected products
The comparisons below are presented on the ba<,sis of the
typical package size retailed in the United States. In gonoral,
the amount- of tax varies with the size of the unit and can bo
converted directly to other size units. Eo.r distilled spirits
and still wine, where the amount of tax defends upon the alcoholic
content of. the product, the comparison is shown on the basis of
the proportion of alcohol representative, of the products retailed
in the United States.
The comparative taxes imposed on each of the principal typos
of. alcoholic beverages by the threo countries are as follows.:
1/
The upper limit of alcoholic content for this class of wine
is slightly higher than the ppper limit in the United Stales.
-100
Amount of tax
Distilled spirits
S>5 proof
United
States-
Canada
$ 1.5S a/
$ 1 .3 7
United
■■ Kingdom..
- b/g ouart
Boer - 12-ounce bottlo
2.ty
Still wine - Jj/'S auart
Alcoholic content of 12$
Alcoholic content of 20$
12
Sparkling v/ine - U/^j auart
Natural
Artificially carbonated
kO
6o < (
SJ Includes
.
2.61:
(
(
$ 5.23
U.Of!
13 i
g
$ 1.55
k21
$ 1.-25
5 cents for rectification tax. The bulk of the distilled
spirits in the United States is subject to this tax.
5i: if
-
101-
APPEITDIX
Special taxes relating to distilled spirits, fermented
malt liquors and wine, as of December 3d> 19^7
Amount
Description
Occupational taxes
Distilled spirits or wine
Wholesale dealers
Retail dealers
$110 per annum
2 7 .5 0 per annum
Fermented malt liquors
Brewers
Producing less than 50® hols, a year
Producing g0Q hhls. or more a year
{Wholesale dealers
Retail dealers
Temporary dealer in malt liquor and/or
wine l/
55
110
55
22
Rectifiers
Producing less than 20,000 proof gals,
a year
Producing 20,000 proof gals.' or more
a year
110 per annum
Manufacturers of stills
Manufacturers of medicines, food products
and flavorings
Withdrawing not more than 25 proof
gals, a year
Withdrawing over 25 hut not more
than 50 proof gals, a year
Withdrawing over 50 proof gals, a year
per
per
per
per
2.20 per month
220 per annum
( 55 'Per annum
( 22 per still or worm
25 per annum
50 per annum
100 per annum
Other
Container stamps, distilled spirits
Container of less than l/2 pint
J cent
Container of l/2 pint or more
1 cent
Export stamps, distilled spirits
annum
annum
annum
annum
10 cents per h hl. 2 /
1 / Subject to limitations this tax applies in lieu of the annual tax
in the case of sales made at fairs, reunions, etc. or entertainments
of certain non-profit organisations.
2/ On certain types of packages the tax is 5 cents.
1
father* Joseph
R* J. Reynolds
public schools
North Carolina
L* Graham, was traffic manager for and a director of the
Tobacco Company.* He received his early education in the
of Winston-Salem/: and graduated from the University of
in 1927#
t ££)
'From 1928 to 1931? Mr* Graham was associated with the Brown and
Williamson Tobacco Company in Winston-Salem and Louisville, Kentucky,
resigning to enter Harvard Law School* He completed his legal education
at the University of Virginia in 1934*
Mr* Graham was admitted to the North Carolina Bar in 1935? and began
the general practice of law in Winston-Salem. From January, 1936 to
March,- 1942 he was junior partner in the law firm of Vaughn and Graham
(Winston-Salem), specializing in tax law*
In~March, 1942, Mr* Graham was commissioned a lieutenant in tLe
United States Naval Reserve, and was released to inactive duty in^Iy^o
as a commander* During his military career he served as a Naval Aviation
ground officer, attached to the Progress Division, Office of the Assistant
Chief, Bureau of Aeronautics, and the Office of the Assistant Chief of
Naval Operations (Air)* Additional duties consisted of special assign
ments with the Assistant Naval Inspector General in conducting field
investigations *
Mr. Graham came to the Treasury in July, 1946, as Executive Assistant
to the late Under Secretary 0. Max Gardner, succeeding James E* Webb when
Mr* Webb left the Department to become Director of the Bureau of the Budget*
In addition to his duties in the Office of the Under Secretary, Mr. Graham
served as chairman of the Customs Steering Committee for the implementation
of proposals for the improvement of the Customs Bureau, aftd as a member of
the Departmental Management Committee, and of ^±re-4tee^fuitmen4-Pr©gram
CoB^ftiHrtroe«
t
/-1
w
H Me tT'tc
Mr-. Graham was appointed Assistant Secretary of the Treasury by
President Truman on July 15, 19 48 •
On June 21, 1935, Mr* Graham was married to Miss>Elizabeth Breckinridge
of Washington, D, C., daughter of Colonel Henry Breckinridge, New York
lawyer and Assistant Secretary of,War during the Wilson Administration, and
the late Mrs. Ruth Bradley Breckinridge, of Washington, D. C.
fa/#6jjp*tl
Mr. and Mrs. Graham, who reside at 2126 Leroy Place, Northwest,
Washington, have three daughters: Louise, 11, Margaret, 9, and
Katherine, 18 months.
PA ^
M ■A t 4/W
>PA a * y
July, 1948. rTML
I
¿Spf&Gft
^
'%>.,■
tA
.A***#
tbv.V i c &¥ A t P V A €
.
##
l&Peit&A&u
J u ly H , 3L94S
B ear Le e *
î have before me your letter of July 9 f 194% enclosing
s < ® P ¥ of your letter to 'the President submitting your resign*
$®&iofï as Under Secretary, to be effective es of the close of
business July 1 4 , X94S# / l e you know, I greatly regret that
ymi flocl thie action nejHtey«
I ß I wish to express g|| deep thanks and sessaend. you for the
fine assistance you have Rendered in the tax field, in the
\ development of the management programs of the Bureaus of
■
K Customs «ad Internal Eeveme, and in the Treasury* s rdation*»
ships with Congress and thç publie» X have been fortunate,
viced, i n having had a person of j m t outstanding ability
sd integrity in the invariant position of trader Secretary
curing thie past year and à half«
!/ All of us at the f r e a m r y m m sorry to see you leave
as Under Secretary* I aa pleased, however, that you will
continue your close advisory and working relationship with
the Treasury in assisting with the management and tax pro«
grams in the Bureau of Internal Revenue whenever your time
will permit» In addition, I sincerely hope that you can
continue to serve as C h a i m m of the Committee to Direct
lian&gamani Studies of the Bureau of Internal Revenue*
I need hot say hoar much X shall miss the cordial daily
relationship we have both enjoyed so such, for it is hut
rare that business association and personal friendship blend
so ©caapletely and so harsaoniously* I shall always treasure
the memory of our association here and shall definitely
look forward to a long and happy continuation of our friend«
ship*
Sincerely,
Honorable A* Lee M* biggins
Under Secretary of the treasury
o
•
2
<fb
*
go&eroas oon®ideratIon of imi at « li tiæ s, «nf for Ib i
eerdiality of our relations»
Xf , at «agr tiae li» tho futura, I «ay, as a privata
citi»«», be of further servie« ta the Treasury er ta yon,
1 bop« yon « Ili not hesitate ta c a ll on ne.
Sincerely yours*
A«..!»« M# W iggins.
1«.1#»- Ä* Wiggins
Under Secretary of the Treasujy
Honorable John V« Szydsr
Secretary of the Treasury
7
m
*0y 9» 1948
0 F w W f OT# sMNnñStayyi
I have today subedtted to til» Preaident ay foratl
roeigmtion m Badea; geeretary «f the freeeury and heve
requeeted that it beooee offeotive beglnning ffanredayt
«hüy 15th.
It la «ith profanad regret that I anet terainate
thie intaresting and stiaulating Service to retura te
prívate Uf e * I regret that I an one ef thosa «ha cannot far too loag a parlad offoed te indulge la the aatisíactions of pabilo aervlee la m eneeutlve position
la GoTernaeat»
4a yon hav# fcacnm for aeveral weeks, 1 had hoped
to ha able to resala for a loager parlad of tiae, bat
dovelopaente of a personal boainaaa nature haré nade
neoeaaory the terainetlen of «y positiva m the 15th.
It la dlffleialt far m , adequately, to aosxvay to
yon the füll aeaeure of appreelatloa that I feel toaard
y cu for the vonderfal opportunity that has heea atine to
n m aa yoar ünder Seeretary* Fe« people reellse the
heavy reaponslbilitiee, the far-re&ching deoiaiona, and
the tronándoos lapact on ocr mtional eaoncny that oro
inherent In the poeitlon of Saorotayy of the fraesas?»
1 hoto ti» greatest adniratlon not acúy for yoar ildil
and far the fine quallty of bualneae Management of tho
Treasary nadar yonr direetion, bat en abtdlng aanfldanoo
la ycmr dirootiaa of the operotlens of tho treaanry
Bepartaent la the hoat Internet of tho people of the
aatien*
It la o «ara prlvilege to heve bean aasooiated «ith
yon la tho paat yoar atad o holf• It hna alao bata a jcy
to w m k with tho fino gratp «f exeoutives» department
hoadaf burean chiefa, aad legal «¿visera that oonatltuto
yoar staff* Man far aaa* 1 k m « of aa aero oble ñor aero
eonaelontlous group of ata anyahere elae, either la prlvato
boalneaa cr la pabilo servios.
1 ahall alvaya be gratofal to yen for the oppürfcunitgr
yon heve given ae to servo In the frooauryf for yonr
-3-
Mr* Graham, the newly appointed Assistant Secretary, has been serving
as Assistant to the former Under Secretary, Mr« Wiggins#
Prior to his
appointment in the Treasury, Mr. Graham was on active duty as a Commander
in the United States Navy, and was brought to the Treasury by Secretary
Snyder at the suggestion of former Under Secretary 0* Max Gardner to replace
Mr# James E# Webb, now Director of the Budget#
Before entering the Govern
ment Service, Mr# Graham was engaged in the private practice of law in
Winston Salem, North Carolina#
He is. a graduate of the University of North
Carolina and attended Harvard and Virginia Universities#
married and resides at 2126 LeRoy Place, N. W*
* * * * * *
Mr# Graham is
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January, 1947, Included the post of Managing Director of /j. L* Coker & Co*
Department Store and Coker’s Ifftiolesale Company, the presidencies of the
Trust Company of South Carolina and the Bank of Hartsville, and director
ships in several important industrial concerns.
He is publidier and owner
of the Hartsville Messenger, a weekly newspaper, and owner of the Hartsville
Press, and affiliated printing plant.
Copies of the letters exchanged by Mr* Wiggins and Secretary Snyder
are attached.
Mr. Foley, the newly appointed Under Secretary, entered the Government
Service in 1932 as an attorney with the Reconstruction Finance Corporation,
and served as General Counsel for the Public Works Administration from 1933
to 1937#
He transferred to the Treasury Department in 1937 as an Assistant
General Counsel., and on May 19, 1939, was appointed General Counsel for the
Treasuiy.
He resigned from this position on July 23, 1942, to accept a
commission as Lieutenant Colonel in the Army of the United States.
In
August, 1943, he was promoted to Golonel at which time he was ordered overseas
for duty in the North African and Mediterranean theaters.
He was awarded the
Legion of Merit ibr his services as Chief of the Finance Subcommission of the
Allied Control Commission for Italy.
After his separation from the Armed
Services, Mr. Foley served as General Counsel for the Office of Contract
Settlement.
On April 15, 1946, he was appointed Assistant Secretary of the
Treasuiy and has continued in that capacity until the present time.
Mr. Foley
is a native of Syracuse, New York, and is a graduate of Fordham University
Mr. and Mrs. Foley reside
and of its law school,
at 10 Thompson
in
in
Circle ^/Washington, D. C., and at 42 East 69th Street, /New York City. He is
the first person in the history of the Department to hold the three positions
of General Counsel, Assistant Secretary, and Under Secretary.
PRESS RELEASE
J-
%f£
Secretary Snyder issued the following statement today:
The President has accepted the resignation of Mr. A* Lee M. Wiggins
as Under Secretary of the Treasury effective as of the d o s e of business
July 14,1948, in order that Mr. Wiggins may return to private business.
Simultaneously, die President appointed Mr. Edward H. Foley, Jr., now
serving as Assistant Secretary of the Treasury, as Mr. Wiggins1 successor,
and Mr. John S* Graham as Assistant Secretary of the Treasury to succeed
Mr. Foley.
Both of these appointments are effective today, July 15*
Tn advising Secretary Snyder of his resignation, Mr. Wiggins expressed
’’profound regret” that he was forced to terminate his interesting and
stimulating service as Under Secretary in order to return to private affairs.
At the same time Secretary Snyder announced that Mr. Wiggins will con
tinue his official relationship with the Treasury by serving as Special
Assistant to the Secretary.
In this capacity, Mr. Wiggins will continue to
serve as Chairman of the Committee to Direct Management Studies of the
Bureau of Internal Revenue.
This committee was created to c oordinate and
direct the implementation of proposals contained in recent reports on the
finreau by Treasury Department and Bureau staffs and by a staff employed by
the Joint Committee on Internal Revenue Taxation, as well as other proposals
-which will result from management studies within the Bureau itself or which
emanate from outside specialists*
Following the conclusion of his full-time Treasury service, Mr. Wiggins
and his family m i l return to their home, Hartsville, South Carolina, where
Mr. Wiggins again will take up his private affairs.
Business connections
at Hartsville rfiich Mr. Wiggins resigned when he became Iftider Secretary in
TREASURY DEPARTMENT
Information Service
IMMEDIATE KEIEASE,
Thursday, July 15. 1QA8
WASHINGTON, D .C .
No. S-7 9 6
Secretary Snyder issued the following statement today:
The President has accepted the resignation of Mr. A. Lee M. Wiggins
as Under Secretary of the Treasury effective as of the close of business
July 14, 194S, in order that Mr. Wiggins may return to private business.
Simultaneously, the President appointed Mr. Edward H. Foley, Jr., now
serving as Assistant Secretary of the Treasury, as Mr# Wiggins 1 successor,
and Mr. John S. Graham as Assistant Secretary of the Treasury to succeed
Mr. Foley. Both of these appointments are effective today, July 15e
In advising Secretary Snyder of his resignation, Mr. Wiggins expressed
"profound regret” that he was forced to terminate his interesting and
stimulating service as Under Secretary in order to return to private affairs.
At the sane time Secretary Snyder announced that Mr. Wiggins will
continue his official relationship with the Treasury by serving as Special
Assistant to the Secretary. In this capacity, Mr. Wiggins will continue to
serve as Chairman of the Committee to Direct Management Studies of the
Bureau of Internal Revenue. This committee was created to coordinate and
direct the implementation of proposals contained in recent reports on the
Bureau by Treasury Department and Bureau staffs and by a staff employed by
the Joino Committee on Internal Revenue Taxation, as well as other proposals
which will result from management studies within the Bureau itself or which
emanate from outside specialists.
Following the conclusion of his full-time Treasury service, Mr* Wiggins
arid his family will return to their home, Hartsville, South Carolina, where
Mr. Wiggins again will take up his private affairs. Business connections
at Hartsville which Mr. Wiggins resigned when he became Under Secretary in
January, 1947, included the post of Managing Director of J. L. Coker & Company
Department Store and Coker* s Wholesale Company, the presidencies of the
Trust Company of South Carolina and the Bank of Hartsville, and director
ships in several Important industrial concerns. He is publisher and owner
of the Hartsville Messenger, a weekly newspaper, and owner of the Hartsville
Press, and affiliated printing plant.
Copies of the letters exchanged by Mr* Wiggins and Secretary Snyder
are attached*
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2
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Mr* Foley, the newly appointed Under Secretary, entered the Government
Service in 1932 as an attorney with the Reconstruction Finance Corporation,
and served as General Counsel for the Public Works Administration from 1933
to 1937* He transferred to the Treasury Department in 1937 as an Assistant
General Counsel, and on May 19* 1939* was appointed General Counsel for the
Treasury* He resigned from this position on July 23, 194-2, to accept
a commission as Lieutenant Colonel in the Army of the United States* In
August, 1943* he was promoted to Colonel at which time he was ordered over
seas for duty in the North African and Mediterranean theaters*^ He was
awarded the Legion of Merit for his services as Chief of the ^Finance
Subcommission of the Allied Control Commission for Italy* After his
separation from the Armed Services, Mr* Foley served as General Counsel
for the Office of Contract Settlement* On April 15* 194&* He was appointed
Assistant Secretary of the Treasury and has continued in that capacity
until the present time* Mr* Foley is a native of Syracuse, New York, snd
is a graduate of Fordham University and of its law school. Mir. and Mrs. Foley
reside at 10 Thompson Circle, in Washington, D# C., and at 42 East 69th
Street, in New York City. He is the first person in the history of the
Department to hold the three positions of General Counsel, Assistant Secretary,
and Under Secretary.
Mr* Graham, the newly appointed Assistant Secretary, has been serving
as Assistant to the former Under Secretary, Mr* ’
Jiggins» Prior to his
appointment in the Treasury, Mr* Graham was on active duty as a Commaider
in the United States Navy, and was brought to the Treasury by Secretary
Snyder at the suggestion of former Under Secretary 0. Max Gardner to^
replace Mr* James E# Webb, now Director of the Budget* Before entering
the Government Service, Mr* Graham was engaged in the private practice of
law in ’Winston-Salem, North Carolina. He is a graduate of the University
of North Carolina and attended Harvard and Virginia Universities.Mr* Graham is married and resides at 2126 LeRoy Pla.ce, Northwest*
oOo
July 9 , 1948
My dear Mr» Secretary:
I have today submitted to the President my formal
resignation as Under Secretary of the Treasury and have
requested that it become effective beginning Thursday,
July 15th*
It is with profound regret that I must terminate
this interesting and stimulating service to return to
private life» I regret that I am one of those who can
not for too long a period afford to indulge in the satis
factions of public service in an executive position In
Governme nt <*
As you have known for several weeks, I had hoped to
be able to remain for a longer period of time, but
developments of a personal business nature have made ,
necessary the termination of my position on the 15 th*
It is difficult for me, adequately, to convey to you
the full measure of appreciation that I feel toward you
for the wonderful opportunity that has been minp to serve
as your Under Secretary* Few people realize the heavy
responsibilities, the far-reaching decisions, and the
tremendous impact on our national economy that are
inherent in the position of Secretary of the Treasury*
I have the greatest admiration not only for your skill
aid. for. the fine quality of business management of the
Treasury under your direction, but an abiding confidence
in your direction of the operations of the Treasury
Department in the best interest of the people of the nation*
It is a rare privilege to have been associated with
you in the past year and a half* It has also boen a ¿oy
to work with the fine group of executives, department
heads, bureau chiefs, and legal advisors that constitute
your staff* Man for man, I know of no more able nor more
consciaitious group of men anywhere else, either in private
business or in public service*
I shall always be grateful to you for the opportunity
you have given me to serve in the Treasury, for your generous
consideration of me at all times, and for the cordiality of
our relations*
If, at any time in the future, I may, as a private
citizen, be of further service to the Treasury or to you,
I hope you will not hesitate to call- ibn'-me«
Sine er ely yours,
Honorable John W* Snyder
Secretary of the Treasury
A* L* M. Wiggins
Under Secre tary of the Treasury
July 14, 1943
Dear Lees
I have before me your letter of July 9, 1948, enclosing
a copy of your letter to the President submitting your resign
nation as Under Secretary, to be effective as of the close of
business July 14, 1948c as you know, I greatly regret that
you find this action necessary*
I wish to express my deep thanks and commend you for the
fine assistance you have rendered in the tax field, in the
development of the management programs of the Bureaus of
Customs and Internal Revenue, and in the Treasury*s relation
ships with Congress and the public* I have been fortunate,
indeed, in having had a person of your outstanding ability and
integrity in the important position of Under Secretary during
this past year and a half*
All of us at the Treasury are sorry to see you leave as
Under Secretary# I am pleased, however, that you will
continue your close advisory and working relationship with
the Treasury in assisting with the management and tax programs
in the Bureau of Internal Revenue whenever your time will
permit* In addition, I sincerely hope that you can continue
to serve as Chairman of the Committee to Direct Management
Studies of the Bureau of Internal Revenue#
I need not say how much I shall miss the cordial daily
relationship we have both enjoyed so much, for it is but
rare that business association and personal friendship blend
so completely and so harmoniously, I shall always treasure
the memory of our association here and shall definitely
look forward to a long and happy continuation of our friend
ship#
Sincerely,
John
Honorable A. Lee.M, Wiggins
Under Secretary of the Treasury
SIOGRAPHICAL MATERIAL
A* Lee M'* Wiggins
Hartsville, South Carolina
PERSONAL: B o m at Durham, North Carolina, April 9, 1891, the
only son of Archie Lee Wiggins and Margaret London (Council) Higgins„
Family: Wife, Pauline Lawton; Children: Mrs* Margaret Belding,
Joseph Lawton, Lee Manning, and Elizabeth; Mother: Mrs* Margaret L.
Wiggins * Democrat; Baptist*
EDUCATION: Graduated at Durham High School, Durham,. North
Carolina, in 1906* During school vacations worked in printing and
newspaper plant* Worked in office of American Tobacco Company,
1906-1909* Entered the University of North Carolina in 1909 and
graduated with A*B* degree in 1913♦ Paid college expenses by work
ing, principally as Manager of the University of Nortu Carolina Press
T.as Editor—in— Chief of the college annual, Yaekety—’
l ack* Was tapped
for the Senior Order of The Golden Fleece at the University*
BUSINESS CAREER: Upon graduation at the University of N,C. in
June, 1913, he went to. Hartsvilie, S* C*, as an assistant- to the
late David R* Coker, with whom he was associated for twenty-five
years and until Mr* Coker’s death* As Mr* Coker’s assistant, he
helped organize Coker's Pedigreed Seed Company, was Business Manager
of the Company for several years and Treasurer of the corporation
until 1947* In 1920 he became General Manager of J , L. Coker & Co*,
Department Store, and later organized Coker's iliolesale Company*
From 1938 to I9 4 7 he was Managing Director of both businesses*
In 1920 Mr* Wiggins organized the Trust Company of South
Carolina^ becoming Vice President and Managing Director* In 1941
he became President* He was Vice President of the Bank of. Hartsville
from 1921 until he became President in 1932»
In January, 1947, when Mr, Wiggins became Under Secretary of the
U* S* Treasury, he resigned all of the above business connections*
In 1921 he purchased the Hartsville Messenger and affiliated
printing plant and has since been the publisher and owner of the
newspaper and of the Hartsville Press*
For a number of years he was a director of several industrial
corporations, including Hartsville Oil Mill, Palmetto Oil Company,
Greenville Cotton Oil Company, Florence Ice and Fuel Company, and
the Atlantic Coast Line Railroad Company* He resigned all business
directorships in January, 1947*
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2'
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BUSINESS ASSOCIATION ACTIVITIES: Mr® Wiggins was President of
the Southern Retail Merchants Conference, Richmond, Virginia, 1922—23$
President, South Carolina Bankers Association, 1931-325 President,
South Carolina Independent Merchants Association, 1937-38$ President,
South Carolina Federation of Commerce, Agriculture, and Industry,
1938-39$ President, South Carolina Press Association, 194-2-43$ Presi
dent, American Bankers Association, 1943-44o
PUBLIC SERVICE AND OTHER ACTIVITIES: Member, Regional^Advisory
Committee, Reconstruction Finance Corporation, 1930—46$ Chairman,
Deposit Liquidation Committee of the Reconstruction Finance Corporation
for South Carolina, 1933-34$ Chairman,- Darlington County Board of
Education, 1934-42$ Chairman, Hartsville Community Center Building
Commission and Hartsville Memorial Library Commission, 1935-1946$
Trustee, Coker College, 1940— , and Treasurer of'Endowment Fund
1940—1946$ Director, American Caneer Society, 1947— $ Treasurer,
American National Red Cross, 1947—48$ Lecturer, Graduate School of
Banking, Rutgers University, 1941— $ Member, federal Advisory Council,
Federal Reserve System, 1946$ Under Secretary of U© So Treasury 1947—48 o
COLLEGE AND UNIVERSITY HONORS: Awarded Certificate of Msrit
for distinguished service to agriculture, Clemson Agricultural College,
1940$ Honorary membership Omicron Delta Kappa, 1941$ Honorary Degree,
LL0 D0 University of South Carolina, 1944$ Honorary Degree, LLoD®,
University of North Carolina, 1946o
CLUBSi Hartsville Golf, Prestwood Country, Hartsville, S© C0$
National Press, Chevy Chase, and Metropolitan, Washington, Do C®$
University, New York©
\
HOME ADDRESS:
June 1948
Hartsville, South Carolina®
EDWARD H. FOLEY, JR.
Mr. Foley was born May 23, 1905, in Onondaga County, New York* the
son of Edward H. and Josephine (Mullin) Foley. . He attended Fordham
University and Fordham University Law School, graduating from the latter
with the degree of LL.B. in 1929.
During and after his law studies Mr. Foley was associated with the
New York law firm of Hawkins, Delafield and Longfellow* He left this
firm to join the legal staff of the Reconstruction Finance Corporation
in Washington in October, 1932. He was assigned to supervision of RFC
legal matters in connection with self-liquidating loans to municipalities
for public works projects.
From 1933 to 1937 Mr. Foley served as assistant general counsel and
then general counsel of the Federal Emergency Administration of Public
Works. As personal legal adviser to the Administrator, Mr. Foley played
a prominent part in the formulation of Public vVorks Administration policies
and procedure.
In the fall of 1937 he resigned as Public Works Administration
General Counsel to become Assistant General Counsel of the Treasury
Department under the late Herman Oliphant, then General Counsel* When
Mr. Oliphant became ill late in 1933, Mr. Foley was designated as Acting
General Counsel, and on May 8 , 1939, he was appointed by President
Roosevelt to be General Counsel of the Treasury.
Mr. Foley and Emily Ligon Bowdoin were married on August 16, 1941«
On August 1, 1942, Mr. Foley resigned from the Treasury to accept
a commission as Lieutenant Colonel in the Army. He was designated as
General Counsel to the Quartermaster General, with station in Wadiington.
In the summer of 1943 he was promoted to Colonel and was sent to Italy
as chief American financial representative of the Allied Control
Commission there. For his services in Italy he was awarded the Legion
of Merit.
At the termination of the war, Colonel Foley returned to civilian
life as General Counsel in the Office-of Contract Termination and
Settlement.
His nomination as Assistant Secretary of the Treasury was sent to
the Senate by President Truman on April 8 , 1946, and was confirmed
April 12. Mr. Foley served as Assistant Secretary until his appointment
July 15, 1943, as Under Secretary of the Treasury to succeed
A. L. M. Wiggins, who resigned to return to private life.
Mr. Foley was named a member of the Attorney General* s Commission on
Bankruptcy Administration in 1939* He served on the Board of Legal
Examiners for the Civil Service Commission from 1941 to 1943, and was
U. S. Delegate to, and chairman of, the Inter-Amcricsn Conference on
Systems of Economic and Financial Control in 1942. He was a member of
the President*s Temporary Commission on Employee Loyalty for 1946 and
1947 .
2
~
Mr« Foley has given much time and effort to civic responsibilities*
He was chairman of the Government Unit of the Community Chest Federated
Campaign in Washington in 194.7, was Campaign Chairman of the Community
Chest Federation of the National Capital Area in 1948 , and is now
a ntQuber of the Boc?xd of Directors of the United Community Services of
Washington.
He has: read numerous papers on municipal and State financing of
public works and housing projects before the American Bar Association,
and is the author of many published articles on these and other legal
subjects.
•
is a member of the timerican Bar Association, the New York State
Bar Association, the Association of the Bar of the City of New York,
and the American Law Institute.
His clubs include the Chevy Chase, Metropolitan, National Press,
nrmy Navy Country, nraiy and Navy (Washington), Piping Pock, Fiver,
Cedar Creek, Manhattan, The Recess (New York).
Mr. and Mrs. Foley reside in Washington at 10 Thompson Circle,
Northwest, and in New York at 42 East 69 th Street.
July, 1948*
JOHN S. GRAHAM
Mr* Graham*s family moved to Winston-Salem, North Carolina from Savannah,
Georgia, shortly after he was b o m in Reading, Massachusetts on August 4> 1905*
His father, the late Joseph L. Graham, was traffic manager for and a director
of the R. J. Reynolds Tobacco Company. Mr. Graham’s mother is also deceased.
He received his early education in the public schools of Winston-Salem, and
graduated from the University of North Carolina in 1927.
From 1928 to 1931, Mr. Graham was associated with the Brown and William
son Tobacco Company in Winston-Salem and Louisville, Kentucky, resigning to
enter Harvard Law School. He completed his legal education at the University
of Virginia in 1934.
Mr. Graham was admitted to the North Carolina Bar in 193$, and began the
general practice of law in Winston-Salem. From January, 1936 to March, 1942
he was junior partner in the law firm of Vaughn and Graham (Winston-Salem),
specializing in:tax law.
While in Winston-Salem, Mr. Graham was active in civic affairs. He
served for three years as Chairman of the Council of Social Agencies and was
closely associated in the work of other local civic institutions.
In March, 1942, Air. Graham was commissioned a lieutenant in the United
States Naval Reserve, and was released to inactive duty in July 1946 as a
commander. During his military career he served as a Naval Aviation ground
officer, attached to the Progress Division, Office of the Assistant Chief,
Bureau of Aeronautics, and the Office of the Assistant Chief of Naval Opera
tions (Air). Additional duties consisted of special assignments with the
Assistant Naval Inspector General in conducting field investigations.
Mr. Graham came to the Treasury in July, 1946, as Executive Assistant to
the late Under Secretary 0, Max Gardner, succeeding James E, Webb when
Mr. ?Jebb left the Department to become Director of the Bureau of the Budget.
In addition to his duties in the Office of the Under Secretary, Mr. Graham
served as chairman of the Customs Steering Committee for the implementation
of proposals for the improvement of the Customs Bureau, as a member of the
Departmental Management Committee, and as an alternate to Under Secretary
Wiggins on the committee to direct management studies of the Bureau of Internal
Revenue.
Mr. Graham was appointed Assistant Secretary of the Treasury by President
Truman on July 15, 1948.
On June 21, 1935, Mr. Graham was married to Miss Elizabeth Breckinridge
of Washington, D, C,, daughter of Colonel Henry Breckinridge, New York lawyer
and Assistant Secretary of War during the Wilson Administration, and the late
Mrs. Ruth Woodman Breckinridge, of Washington, D. C.
Mr. and Mrs. Graham, who reside at 2126 Leroy Place, Northwest, Washing
ton, have three daughters; Louise, 11, Margaret, 9, and Katherine, 18 months.
life*. Graham is a member of the vestry of Ephiphany Episcopal Church and
also of the House of Mercy of the Episcopal Church, both of Washington.
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Our stability can only bo maintained by a combination
of good judgment and a deliberate restraint« The
fundamentally sound and flexible financial position of
borrowers and banks is the basic protection for a ll
^unexpected future economic changes«
Of course there is no my the banks can undo the
inflationary forces already in effect or which may come
into effect from other sources« Also the present lerel
of our eoonomio activity and prices requires substantial
uses of oredit« But bankirs acknowledge the fundamental
responsibility to maintain sound assets and a substantial
liquidity, and to avoid credit abuses«
You can be assured of our continued cooperation in
meeting the inflationary problem*
Sincerely yours,
(S'igflWiT) Joseph M« Dodge
Ike American Bankers Association ant the banks « ill
continue and intensify their cooperative action to
control the proper use and expansion of credit, and
« ill continue to stimulate increased savings*
Again I am urging the banks to scrutinise credit
carefully to the effect that its uss « ill bs restricted
to that which stimulates immediate production and
avoids increasing the pressures on consumption*
except in areas of free supply* Under present con*
ditions the extension of credit in the commercial,
agricultural, or consumer fields undoubtedly requires
continued emphasis on selectivity, and restriction to
sound and necessary purposes«
In particular I am asking the banks not to contribute to
rising prices, fictitious values, or false standards of
living from the use of ereditf to maintain a general and
consistent pressure for loan liquidation and the fu lfill*
merit of payment commitments; to match the inventory
and accounts receivable accumulations of borrowers;
to scrutinise the terms under which borrowers themselves
extend credit; to relate mortgage loam to sound and
realistic values; and to make consumer credit loans on
conservative terms« In a ll cases the total obligations
of borrowers should be held well within their capacities
to pay*
Also, I am asking the banks to use every effort to
encourage investment in Government Savings Bonds and
in savings deposit accounts« Savings are particularly
important because the mere saved now, the more people
w ill have * and the less thqy spend, the greater s i l l be
the future purchasing power of their savings and incomss.
Everyone knows that the further prices and debts get out
of line, the greater the probability of a drastic correction
vhioh w ill bring severe penalties, particularly to the
over-extended borrower« Individuals, businesses, and
the Bation a ll need stability as much as or mors than they
need prosperity« this is a time in which wc can not afford
personal or business deficits any mors than we can afford
Government Budget deficits#
July 7, 1948
m
The Honorable John W. Snyder
Secretary of the Treasury
Washington» 8* 6«
Dear Secretary Snyder*
Thank you for your letter of July % about the need for
continued effort on the part of the banks to control
crédit expansion* Tour comment about the voluntary
program of the American Bankers Association is muon
appreciated*
I w ill see that your letter is brought to the direct
attention of the appropriate officers of the banks of
the Country*
We have had the complete cooperation and support of the
State Bankers Associations in carrying this program to
the individual banks through State» group» and other
local meetings* The scope of their worie has bsen tre*
mendous, and it has been made effective by the ready
acceptance of the principles by ths individual bank
managements*
However* 1 am sure we a ll realise that the emphasis of
the Spring meeting period is over* The first six months
of this calendar year have passed and now we are going into
the second six months» which is the first half of the
1948*1949 fiscal year* We can not fa il to recognise the
substantial change in the fiscal picture» which is men*
tinned In your letter» and that the period ahead of us
w ill present a test of whether inflationary forces can
be controlled and checked* Certainly recent events and
forecasts suggest that the longer term outlook can be
dangerously inflationary*
1f?
As a consequence, the Government w ill no longer be abli
to re tire bank-held debt on the scale aaintained during the
la st fisc a l year; and bankers can no longer look to a decllm
in their investments to offset an increase in their loans.
A wash larger share of the total burden of controlling in
fla tio n anst henceforth lie with the banks.
Bearing th is in mind, and with f u ll realisation of the
seriousness of the situation, I an taking the liberty of
asking you to reexaaine your efforts in th is fie ld , and
wherever possible to Increase then. The fin a l responsibllltj
and it is a grave one, suet rest with the se lf-d iscip lin e of]
each individual bank. Tour effort to impress th is upon the
banking fraternity w ill be a real contribution to the cause
of economic sta b ility .
Sincerely yours
— IS.lBKUii) JOBS I. SHTDEB
Secretary of the Treasury
Mr. Joseph 1. Bodge,
President,
American Bankers Association
12 la st 36th Street,
Mew York 16, Mew York
July 2, 19*18
Dear Mr. Dodge
This letter la to express my appreciation for the
voluntary credit control prograa of the American Bankers
Aesociatlon and. to out lino the circumstances, fam iliar
to both of no, which now require that the effort under
th is prograa be continued without relaxation.
The American Bankers Association credit control
prograa began the f ir s t of th is year and has been pushed
actively and aggressively by the Association through
pamphlets and printed material, group nestings, ana by
word-of-aouth of the leaders of the banking fraternity.
Bankers in a ll parts of the country have been influenced
by the prograa and have screened their loan applications
with added vigilance. The results have been well worth
the effort. During the f ir s t five aonths of th is year,
the total loans of a ll ooaaeroial bank« advanced by only
$1,390 m illion, while their lnvestaents fe ll by $3,290
a illio n . As a consequence, there was a substantial de
clin e in the aoney supply of the country during the
period, contributing m aterially to containing inflationary
pressures.
As you know, inflationary pressures s t i l l continue
serious; but the Government w ill no longer be able to
contribute substantially to their control by aeans of an
excess of receipts over expenditures. In the fisc a l
ear which just closed, we had such an excess of $8.h
illio n . On the other hand, in the fis c a l year just
commencing, as a result of increased defense and foreignaid expenditures due to the tense international situation,
combined with the recent tax cut, we sh a ll probably be
unable to avoid an actual excess of expenditures over
receipts.
S
I/
Secretary Snyder today made public the following
correspondence between himself and Hr. Joseph M. Dodge ,
President of the American Bankers Association:
)
T R E A S U R Y
D E P A R T M E N T
Information Service
Wa s h in g t o n , d .c .
RELEASE, MORNING NEWSPAPERS,
Monday, Jul? 19. 1 9 A 8 , ____
'
Ho‘ fa~'9 '
Secretary Snyder today made public the following correspondence
between himself and Mr, Joseph M, Dodge, President of the American
Bankers Associations
July 2, 194&»
Dear Mr* Dodge;
;
This letter is to egress my appreciation for the
voluntary credit control program of the American Bankers
Association and to outline the circumstances, familiar
to both of us, which now require that the effort under
this program be continued without relaxation*
The American Bankers Association credit control
program began the first of this year and has been pushed
actively and agressiveiy by the Association tnrough
pamphlets and printed material, group meetings, and by
word-of-mouth of the leaders of the banking fraternity*
Bankers in all parts, of the country have been influenced
by the program and have screened their loan applications
with added vigilance* The results have been well worth
the effort* During the first five months of this year,
the total loans of all commercial banks advanced by only
$>1 , 3 5 0 million, while their investments fell by $3 ,2 5 0
million* As a consequence, there was a substantial decline
in the money supply of the country during the period,
contributing materially to containing inflationary pressures
As you know, inflationary pressures still continue
serious; but the Government will no longer be able to
contribute substantially to their control by means of an
excess of receipts over expenditures* In the fiscal year
which just closed, we had such an excess of «$3*A billion*
On the other hand, in the fiscal year just commencing, as
a result of increased defense and foreign—aid expenditures
due to the tense international situation, combined with
the recent tax cut, we shall probably be unable to avoid
an actual excess of expenditures over receipts*
As a consequence, the government will no longer be
able to retire bank-held debt on the scale maintained
during the last fiscal year;and bankers can nb longer
look to a decline in their investments to offset an,
increase in their loans-. A much larger share of the
total burden of controlling inflation must henceforth
lie with the banks.
Bearing this in mind, and with full realization of
the seriousness of the situation, I am taking the liberty
of asking you to reexamine your efforts in this fi,eld,
and wherever possible to increase them. The final
responsibility, and it is a grave one, must rest.with
the self-discipline of each individual bank. lour effort
to impress this upon the banking fraternity will be
a real contribution to the cause of economic stability*
Sincerely yours,
John
Snyder
Secretary of the Treasury
Mr. Joseph M. Dodge
President
Anurican Bankers Association
12 East 36 th Street
New York 16, New York
July 7, 194-8
The Honorable John W. Snyder
Secretary of the Treasury
Washington, D. C.
Dear Secretary Snyder:
Thank you for your letter of July 2 about the need for
continued effort on the part of the banks to control credit
expansion. Your comment about the voluntary program of the
American Bankers Association is much appreciated*
I will see that your letter i,s brought to the direct
attention of the appropriate officers of the banks of the
Country*
- 3 we have had the complete cooperation and support of the
State Bankers Associations in carrying this program to the
individual banks through State* group* and other Ideal
meetings* The scope of their work has been tremendous* and
it has been made effective by the ready acceptance of the
principles by the individual bank managements*
However, I am sure we all realize that the emphasis of
the Spping meeting period is over* The first six months
of thi^ calendar year have passed and now we are going into
the second six months* which is the first half of the
1948-1949 fiscal year. We can not fail to recognize the
substantial change in the fiscal picture* which is mentioned
in your letter* and that the period ahead of us will present
a test of whether inflationary forces can be controlled and
checked* Certainly recent events and forecasts suggest that
the longer term outlook can be dangerously inflationary*
The American Bankers Association and the banks will
continue and intensify their cooperative action to control
the proper use and expansion of credit* and will continue
to stimulate increased savings.
Again I am urging the banks to scrutinize credit
carefully to the effect that its use will be restricted
to that which stimulates immediate production and
avoids increasing the pressures on consumption* except
in areas of free supply. Under present conditions the
extension of credit in the commercial* agricultural* or
consumer fields undoubtedly requires continued emphasis
on selectivity, and restriction to sound and necessary
purposes*
In particular I am asking the banks not to contribute
to rising prices* fictitious values* or false standards of
living from the use of credit; to maintain a general and
consistent pressure for loan liquidation and the fulfillment
of payment commitments; to watch the inventory and accounts
receivable accumulations of borrowers; to scrutinize the
termsv under which borrowers themselves extend credit; to
relate mortgage loans to sound and realistic values; and to
make consumer credit loans on conservative terms. In all
cases the total obligations of borrowers should be held well
within their capacities to pay*
Also* I am asking the banks to use every effort to
encourage investment in Government Savings Bonds and
in savings deposit accounts. Savings are particularly
important because the more saved now, the more people
will have - and the less they spend, the greater will be
the future purchasing power of their--savings and incomes.
- 4-
Everyone knows that the further prices and debts get
out of line, the greater the probability of a drastic
correction which will bring severe penalties, particularly
to the over-extended borrower© Individuals, businesses, and
the Nation all need stability as much as'or more than they
need prosperity» This is a time in which we can not afford
personal or business deficits any more than we can afford
Government Budget deficits*
Our stability can only be maintained by a combination
of good judgment and a deliberate restraint# The fundamentally
sound and flexible financial position of borrowers and banks
is the basic protection for all unexpected future economic
changes©
Of course there is no way the banks can undo the
inflationary forces already in effect or which may come
into effect from otha? sources* Also the present level
of our economic activity and prices requires substantial
uses of credit* But bankers acknowledge the fundamental
responsibility to maintain sound assets and a substantial
liquidity, and to avoid credit abuses#
You can be assured of our continued cooperation in
meeting the inflationary problem*
Sincerely yours,
Joseph M# Dodge
0 O0
0
. ■ê
ttreasur^ department
STATUTORY DEBT LIMITATION
AS O F ..Jirne
TO.
1<M
-iStaL&JSHS
.
Section 21 of the Second Liberty Band 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
ttoited 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.
Fbr 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.11
The following table shows the face amount of obligations outstanding and the face amount which can still be
issued under this limitation:
$ 275 , 000 , 000,000
Total face amount that may be outstanding at any one time
Outstanding J i m a jJQ, 19*+8
Obligations issued under Second Liberty Bond Act, as amended
Interest-bearing:
Treasury bills...... ............ •
Certificates of indebtedness.......
Treasury notes*............
Bonds —
Treasury.......... *...... .
Savings (current redemp.value),..
Depositary.......................
Armed Forces Leave.
Investment series................
Special Fluids Certificates of indebtedness
Treasury notes........... .
Total interest-bearing....
* 13.757,257.000
22.587.787,000
15,768.268,700
t
1 1 2 (^6s,0 2 6 ,0 0 0
53.273.675.51^
3l6,35H.OOO
563.276.925
959.350.000
l67.57U,6S2,U39
1 6 ,5 0 1 ,3 0 0 ,0 0 0
1 3 ,7 0 9 .9^2 ,0 0 0
30,211,2Ug,000
2U9.899.237.139
27U.79^.775
Matured, interest-ceased........
Bearing no interest:
War savings stamps.... .
Excess profits tax refund bonds..».
Special notes of the United States:
Internet rl Bank for Reconst.
and Development series..... .
Internat*1 Monetary Fund series..
52 . U 3 .3i2 .7 OO
.
.
5®»413»®30
3,879*973
65,7 & 5 »
X ,l 6l , 0 0 0 , 0 0 0
............... ».............. ............. .......
1,29*+» 0 7 3 * 6 5 3
251 > 68,110,567
Guaranteed obligations (not held by Treasury):
Interest-bearing';
Debentures: 7.H.A.
Demand obligations : C.C. C.
„
27*064,586
......
68,768,0*+3
....... * ¿ * 7 0 3 , 4 5 7
Matured, interest-ceased........♦*....................... .
*+,692*775
73,W 0 , 8 1 8
Grand total outstanding.........*.... ........... *..........
"
Balance face amount of obligations issuable under above authority................ •«« *—*•_
' Reeoncilementwith Statement of the Public Debt -
«Hin©
251.5»!.571.385
2 3 .»58.428. bl5
*, <*>9*+3
(Daily Statement of the Ihited States Treasury, July 1, 19*+3/
Outstanding Total gross public debt.............................. ...............
Guaranteed obligations not owned by the Treasury.
Total gross public debt and guaranteed o b l i g a t i o n s . . . .....................
Deduct — other outstanding public debt obligations not subject tp debt limitation..
252,292,2146,513
7 3 .I160.818
252.365JO7.33i
gg.135.SM
$25l,5»l, 571,3s
STATU TO Iff DEBT LIMITATION
AS OF JUNE 3Ô, 1948
July 16, 1948
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 $27$',000,000*000 outstanding at any one time* For pur
poses 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 aaount that may be outstanding at any one time
Outstanding June 30, 1948
Obligations issued under Second Liberty Bond Act, as amended
Int er est-be ar in g:
Treasury bills.......... © $ 13,757,257,000
Certificates ofindebtness.
22,587,787*000
Treasury not es•••.•••••••*
15.768,268,700 $ 52,113* 312* 700
Bonds —
Treasury.
$275*000,000,000
112, 462 ,026, 000
S a v in g s ( c u r r e n t re d c a p * value)53*273*675* 514
Depositary..............
316,354* 000
Armed Forces Leave......
563*276,925
Investment s e r i e s ___ 959.350.000167,574*682,439
Special Funds Certificates of indebt edness 16,501,300,000
Treasury notes.........
13.709»942,000
Total interest-bearing.................
Matured, interest-ceased....*•«•«.»•*•••••«.«
Bearing no interest:
War savings stamps.......*
58 ,413*680
Excess profits tax refund bonds
8,879*973
Special notes of the United States:
InternatULBank for Reconst®
and Development series...
65*785,000
Internet*1 Monetary Fund series 1,161,000,000
T o ta l« .................................................................................................
Guaranteed obligations (not held by Treasury):
Interest-bearing:
Debentures: F.H.A. ..........
27,064*586
Demand obligations: C.C.C, ••
__41»703*457
Matured, interest— ceased............ ° •*..... .
30*211, 242, 000
249,399*237,139
274*794*775
1,294,078,,653
251,468,110,567
68,768,043
4.692,775
73.460,818
Grand total outstanding......... ...............
BaLahce face amount of obligations issuable under above authority...
251*541*571*385
23,458,428,615
Reconcilement with Statement of the Public Debt - June 30, 1948
(Daily Statement of the United States Treasury,' July 1, 1948)
Outstanding Total gross public debt...............«........... *..... .
Guaranteed obligations not owned by the Treasury.
Total gross public debt and guaranteed, obligations..............
D'educt - other outstanding public debt obligations not
suhject to/debt l i m i t a t i o n •••••*••••<»
<
n o a
252 ,292 ,2 4 6 ,5 1 3
73.460,818
252,365,707,331
824,135,946
4251,541,571,385
COINAGE OF THE UNITED STATES, BY MINTS, DURING THE FISCAL YEAR I9I48.
Denomination
Philadelphia
San Francisco
Denver
Total Value
Total Pieces
SILVER
Half dollars - Regular - - - - - - - ”
- Commemorative;
Booker T. Washington - -- - - - - - -
$1,500,000.00
$2,01)4,300.00
$3,5lU,300.00
7,028,600
60,011.00
$60,011.00
60,011.00
1 8 0 ,0 3 3 .0 0
360,066
6,737,000.00
1,383,000.00
14,1435,600.00
1 2 ,5 5 5 ,600.00
50,222,1400
8,770,000.00
2,368,000.00
3 ,3 3 9 , 0 0 .0 0
1 )4,1477,1400.00
lWt,77l*,000
17,067,011.00
3,811,011.00
9,81*9,311.00
3 0 ,7 2 7 ,3 3 3 .0 0
202,385,066
- - - - - - - - - - -
U,938,200.00
231,000.00
1,0)43,1400.00
6,212,600.00
1214,252,000
One-cent pieces - - - -- - - - - - - -
.2,1*1*1,350.00
1,189,000.00
1,132,500.00
14,762,850.00
1476,285,000^
7,379,550.00
1 ,1420,0 0 0 .0 0
2,175,900.00
10,975,i(50.00
600,537,000
2l4,l4l46,56l.OO
5 ,2 3 1 ,0 1 1 .0 0
1 2 ,025 ,2 1 1 .0 0
141,7 0 2 ,7 8 3 .0 0
802,922,066
Quarter dollars - - - - - - - - - - - Dimes --------- - ---- ------------ - Total silver---- -- ----
J
MINOR
Five-cent pieces
Total minor
- ------ ------
Total domestic coinage -- - - - - -
COINAGE EXECUTED FQRNlOVERNKÇNTS OTHER THAN UNITED STATES,
Dominican Republic - X - X - -------- 3 ,000,000 pieces
Ecuador---------------X r ----------- 13,821,000
«
E t h i o p i a ---------- X " - X r ----------1 )4,1 2 7 ,3 6 7
« — Philippines-- -- - X ---- X - - ----300,000
"
S a l v a d o r ------/---- ------X - ----8,000,000
H
---- -------X - --- 5,000,000
lx
Saudi Arabia
Syria - - ------ .- •=------ X
- 7,000,000
n
Total X
-------------------------5l,2ii8,367
Domestic coinage at the three United States Mints
during the 1948 fiscal year which ended June 30, 1948, totaled
802,922,066 pieces, with a value of $41,702,783, according to
a report made public today by Nellie Tayloe Ross, Director of
the Mint.
This represented a decrease of 1,213,563,229 pieces
from the 1947 coinage production.
In the fiscal year 1947, domestic coinage totaled
2,016,485,295 pieces, with a value of $77,066,507.50.
The Mint also manufactured 51,248,367 coins for for
eign governments during the fiscal year.
These included:
Dominican Republic, 3,000,000 pieces;; Ecuador, 13,821,000;
Ethiopia, 14,127,367; Philippines, 300,000; Salvador, 8,000,000;
Saudi Arabia, 5,000,000; and Syria, 7,000,000.
The attached table gives details of the coinage
executed by the various Mints during the fiscal year.
TREASURY DEPARTMENT
Information Service
W ASHINGTON, D .C .
RELEASE, AÎTEKNSOH NEWSPAPERS,
Tuesday^ July 20, 1948,»
No. S-799
Domestic coinage at the three United States Mints during the 194$
fiscal year which ended June 30* 1948, totaled 302*922,066 pieces* with
a value of $41*702*733* according to a report made public today by
Nellie Tayloe Boss* Director of the Mint#
This represented a decrease
of 1,213*563*229 pieces from the 1947 coinage production#
In the fiscal year 1947, domestic coinage totaled 2,016*485*295
pieces, with a value of $77*066*507#50.
The Mint also maiufactured 51,243,367 coins for foreign governments
during the fiscal year#
These included:
Dominican Republic, 3*000,000
pieces; Ecuador, 13*821*000; Ethiopia, 14,127*367; Philippines* 300,000;
Salvador, 8,000,000; Saudi Arabia, 5*000,000; and Syria, 7,000,000.
The attached table gives details of the coinage executed by the
various Mints during the fiscal year.
Attachment
COINAGE OF THE UNITED STATES, BY MINTS, DURING TEE FISCAL YEAR 1948
Philadelphia
Denomination
Denver
San Francisco
Total Value,
Total Pieces
SILVER
Half dollars - Regular ----------------•*
ti
- Commemorativet
Booker T. Washington - - - - - - - Quarter dollars
- - - - - - - - - - - -
$1,500,000.00
$2,0lU,300o00
$3,51^,300.00
7,028,600
60,011.00
$60,011.00
60,011.00
180,033.00
360,066
6,737,000.00
1*3^3,000.00
4 ,435 ,600.00
12,555*600.00
50,222,^00
8,770,000.00
2,368,000.00
3 .339,^oo.oo
14 ,477,400.00
144,774,000
9,849,311.00
30.727.333.00
202,365,066
•
3 ,811 ,011.00
- - - - - - - - - - - -
17,067,011.00
Five-cent pieces - - - - - - - - - - - -
U,93s,200.00
231,000.00
1.043.400.00
6,212,600.00
124.252.000
One-cent pieces
- - - - - - - - - - - -
2
,UUi,350.00
1,189,000.00
1.132.500.00
^,762,850.00
476.285.000
- - - - - - - - - - - -
7 .379.550.00
1 ,420,000.00
2,175,900.00
10 ,975,^50.00
600,537,000
5,231,011.00 12,025*211.00
41,702,7B3.QO
802 ,922,066
Total silver
MINOR
Total minor
Total domestic coinage
- - - - - - -
24,446,561.00
ik '
râ
i
fOQ
m jtàsB, mmxm mmmpms,
Tuesday, July 20, 1948«
Tbs secretary of the Treasury announced last evening that the tenders for
1900,000,000, or thereabouts, of 91-day Treasury bille to be dated July 28 and to aatou*
Oetober 21, 1948, which aere offered July 16, 1948, were opened at the Federal »»serre
Banks on July 19«
.\
Tbs details of this issue are as follows}
Total applied for - #1,724,855,000
Total accepted
Average prise
-
908,599,000
(includes #45,575,000 entered on a noncompetitive basis and accepted in full at
the average prise shown below)
* 99*748 Equivalent rate of dlseount approx* 0*997)1 per annum
lange of aeeepted competitive bidet
Sigh
Low
» 99*755 Squivalsnt rate of dlseount approx* 0*977$ per annua
- 99*747
*
»
*
*
*
1.001$ *
*
(55 percent
of the amount bid for at thelew prise was aeeepted)
Federal Beeerre
District
Total
Applied for
Total
Accepted
Boston
Hew Tork
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
8t* Louis
Minneapolis
Kansas City
Dallas
Ban Francisco
f
26,335,000
1,469,021,000
8,849,000
25,100,000
6,945,000
5,545,000
79,775,000
13,659,000
1,925,000
12,926,000
6,840,000
69r955*000
# 22,650,000
755,28«, 000
5,148,000
15,050,000
4,935,000
3,545,000
41,912,000
6,691,000
1,724,000
12,658,009
6,572,000
52.435.000
»1,784,833,000
(908,598,000
TOTAL
TREASURY DEPARTMENT
Information Service
W ASHINGTON,
RELEASE MORNING NEWSPAPERS,
Tuesday, July 20, 19AS»____
No* S-800
The Secretary of the Treasury announced last evening that the tenders for
1900,000,000, or thereabouts, of 91-day Treasury bills to be dated July 22 and to
mature October 21, 1948, which were offered July 16, 1948, were opened at the
Federal Reserve xBanks on July 19*
The details of this issue are as follows;
Total applied ,for - $1,724,853,000
Total accepted
—
908,599, 000 (includes $45,375,000 entered on a non
competitive, basis and accepted in full
at the average price shown below) x
Average price
- 99.748 Equivalent rate of discount approx. 0.997$ per
annum
Range of accepted competitive bids:
High
Low
99*753 Equivalait rate of discount approx. 0.977$
.
annum
- 99*747 Equivalent rate of discount approx. 1*001$
annum
-
(33 percent of the amount bid for at the low price was accepted.)
Total
Applied for
Federal Reserve
District
Boston
New York
Philadelphia
Cleveland
Richmond
At! anta
Chicago
St* Loui s
Minneapolis
Kansas City
Dal las
San Francisco
TOTAL
'
—
Total
Acceii. ed
%
26,335,000
1,469,021,000
8,849,000
25 ,100,000
6,945,000
3,545,000
79,773,000
13,659,000
1,925,000
12,926,000
6,840,000
69 .-935,000
$ 22,650,000
755,299,000
5,148,000
15,050,000
4,935,000
3,545,000
41,912,000
6,691,000
1,724,000
12,658,000
6,572,000
32,415.000
$1,724,853,000
$908,599,000
/
-
2
-
^Mr* lrey*s loyalty and devotion to duty, and his
steadfast courage will long be remembered by the
Department in which he labored for more than a quarter.
century*
«
«J
H'Nsfws of the passing of Elmer L« Irey, for many years
Chief Coordinator of the Treasury law enforcement agencies,
is the cause for genuine sorrow throughout the Government
which he served so faithfully.
l^Mr. Irey*s career as an investigator began in the
Post Office Department, but in 1919 he came to the Bureau
of Internal Revenue where he lent his able leadership
and untiring energy to the organization and development
of the Intelligence Unit.
During the years that he headed
this important investigative branch of the Treasury, he
I
was the nemesis of the Federal tax evader, and his name
became a synonym of efficient law enforcement throughout
the Nation.
*^In 1941^ Mr. Irey became Coordinator of all Treasury
)
l
j
/
enforcement agencies, and until his retirement in 1946,
he supervised activities of this nature in the United
States
Secret Service, the Intelligence Unit of the Bureau
of Internal Revenue, the Bureau of Narcotics, the Alcohol
Tax Unit, the Bureau of Customs and the United States
Coast Guard
!
IMMEDIATE RELEASE
Tiesday, July 20, 1948
Acting Secretary of the Treasury Edward H. Foley
Jr., today issued tire following statement:
T R E A S U R Y
D E P A R T M E N T
Information Service
WASHINGTON, D .C .
IMMEDIATE RELEASE,
Tuesday« July 20, 194-8»
No* ,S-801
Acting Secretary of the Treasury Edward H. Foley, Jr., today
issued the following statement:
"News of the passing of Elmer L* Irey, for many
years Chief Coordinator of the Treasury law enforce
ment agencies, is the cause for genuine sorrow through
out the Government which he served so faithfully*
“Mr* Ireyrs career as an investigator began in the
Post Office Department, but in 1919 he came to the Bureau
of Internal Revenue where he lent his able leadership
and untiring energy to the organization and development
of the Intelligence Unit'* During the years that he
headed this important investigative branch of the Treasury,
he was the nemesis of the Federal tax evader, and his name
became a synonym of efficient law enforcement throughout
the Nation*
“In 190-9 Mr* Irey beeame3Coordinator of all Treasury
enforcement agencies, and until his retirement in 194-6,
he supervised activities of this nature in the United
States Secret Service, the Intelligence Unit of the Bureau
of Internal Revenue, the Bureau of Narcotics, the Alcohol
Tax Unit, the Bureau of Customs and the United States
Coast Guard*
“Mr. Irey's loyalty and devotion to duty, and his
steadfast courage will long be remembered by the Department
in which he labored for more than a quarter-century.“
oOo
mm
- 3-
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 Ij.2 and
117 (a) (1) of the Internal Revenue Code, as amended by Section 115 of tho Reve
nue Act of 19U1, 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 No. I4I 8 , as amended, and this notice, prescribe
the terms of the Treasury bills and govern the conditions of their issue.
of the circular may be obtained from any Federal Reserve Bank or Branch.
Copies
xm&
-
2
-
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 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, non-competitive tenders for $200,000 or
less without stated price from any one bidder will be accepted in full at the
average price (in three decimals) of accepted competitive bids.
Settlement for
accepted tenders in accordance with the bids must be made or completed at the
Federal Reserve Bank on
July 29, 19U8
, in cash or other immediately avail-
able funds or In a like face amount of Treasury bills maturing
July 29, 19U8
■h ^ t’*.
Cash and exchange tenders will receive equal treatment.
•v
Cash adjustments will be
made for differences between the par value of maturing bills accepted in exchange
and the issue price of the new bills.
The income derived from Treasury bills, whether interest or gain from the sale
or other disposition of the bills, shall not have ary exemption, as such, and loss
from the sale or other disposition of Treasury bills shall not have any special
treatment, as such, under the Internal Revenue Code, or laws amendatory or supplemen
tary thereto.
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 ary State, or any of the
possessions of the United States, or by any local taxing authority.
For purposes
miMXxx
TREASURY DEPARTMENT
Washington
foX
FOR RELEASE, MORNING NEWSPAPERS
Friday, July 23, 19U8._________
W
The Secretary of the Treasury, by this public notice, invites tenders for
$ 900,000,000
, or thereabouts, of
91 -day Treasury bills, for cash and
w
w
to be issued on
in exchange for Treasury bills maturing July 29, 19U8
a discount basis under competitive and non-competitive bidding as hereinafter
provided.
will mature
interest.
The bills of this series will be dated
October 28, 19U8
and
July 29, 19U8
, when the face amount will be payable without
They will be issued in bearer form only, and in denominations of
Tenders will be received at Federal Reserve Banks and Branches up to the
closing hour, two o*clock p.m., Eastern/fekxTObogi time,
Monday, July 26, 19 I48
Tenders will not be received at the Treasury Department, Washington,
Each
tender must be for an even multiple of $1,000, and in the case of competitive
tenders 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
TREASURY DEPARTMENT
Information Service
RELÍASE, m o r n i n g n e w s p a p e r s ,
Friday» July 23, 194.8*
WASHINGTON, D C .
No* S-802
The Secretary of the Treasury, by this public notice, invites tenders for
$900,000,000, or thereabouts, of 91-day Treasury bills, for cash and in exchange
for Treasury bills maturing July 29, 1948, to be issued on a discount basis
under competitive and non-competitive bidding as hereinafter provided* The
bills of this series, will be. dated July 29, 1948, and will mature October 28,
1948, when the face amount will be payable vd.thout 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*, Fas tern daylight saving time, Monday, July 26,
1948*’ Tenders will not be received at the Treasury Department, Washington*
Each tender must be for an even multiple of $1,000, and in the case of
competitive tenders 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 wrhich 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 vti.ll 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, non-competitive tenders
for $200,000 or less without stated price from any one bidder will be accepted
in full at the average price (in three decimals) of accepted competitive bids.
Settlement for accepted tenders in accordance with the bids must be made or
completed at the Federal Reserve Bank on. July 29, 1948, in cash or other
immediately available funds or in a like face amount of Treasury bills maturing
July 29, 1948. Cash and exchange tenders will receive equal treatment* Cash
adjustments will be made for differences between the par value of maturing
bills accepted in exchange and the issue price of the new bills# -
-
2
-
The Income c.drived 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 treatnent, as such, under the Internal Revenue Code, or laws
amendatory or supplementary thereto* The. bills shàll be subject to estate,
inheritance, gift or other excise taxes, whether Federal br 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 thè amount of
discount at which Treasury_bills are’originally sold by the.;United States
shell be considered to be interest* Under Sections 42 and 117 (a) (l) of the
Internal Revenue Code, as amended by;.Section 115 of the,-Revenue Act of 1941,
thp amount of discount at which bills issued hereunder are sold shall not be,
considered to ac orue 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 i-s 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
KELM S3
mmim
Tuesday. Ju ly 8 7 , 1948«
fila Secretary of thè Treagury aanouneed last evealng that thè tendere for
/
1900,000,000» or there&boute, of 91*4ay Treagury bills to te dated July 29 and to nature
Oetober 28, 1948» whleh aere offarad July 28» 1948, vere opened at thè federai Raserro
Banks on July 26.
thè dataila of this issu® are aa follone:
Total applied for - #1,689 ,»99,000 /
Total aeeepted
909,689,000 * (lnoludee #44,404,000 entered on a nonoompetitlve tagli and aeeepted in fall at
/
thè average prlee stoini below)
/
Avara«a prlee
- 99*948 Equivalent rate of discount approx. 0.997$ per annua
Range of aeeepted eompatitive tolde:
High
lev
« 99.968 Equivalant rate of digeount approx» 0.977$ per annaffi
- 99.949
*
«
«
a
»
1.001$ *
»
(40 pereant of thè aaount tid for at thè low prlee wae aeeepted)
federai Reserve
Distrlet
Total
Applied for
Total
Aeeepted
Boston
New York
Philadelphla
Cleveland
Richmond
Atlanta
Ohieago
8t» Louis
Minneapolis
Kansas City
Ballai
San Francisco
|
ai,*85,000
1,364,081,000
16,280,000
86,981,000
6,646,000
3,944,000
99,386,000
18,410,000
4,296,000
21,000,000
29,110,000
75,809,000
# 16,225,000
900,191,000
8,480,000
24,961,000
4,446,000
3,684,000
58,378,000
6,290,000
2,746,000
20,160,000
29,250,000
37,109.000
#1,689,5*7,000
#*09,689,000
TOTAL
TREASURY DEPARTMENT
Information Service
Wa s h in g t o n , d .c .
RELEASE MORNING NEWSPAPERS,
Tuesday, July 27, 19AS*
No. S-803
The Secretary of the Treasury announced last evening that the tenders for
4900,000,000, or thereabouts, of 91-day Treasury bills to be dated July 29 and
to mature October 28, 19-48, which were offered July 23, 1948* ’were opened at the
Federal Reserve Banks on July 26*
The details of this issue are as follows:
Total applied for - 41,689*397,000
Total accepted
909,689,000 (includes 444*404*000 entered on. a non
competitive basis and accepted in full at
the average price shown below)
Average price
— 99*748 Equivalent rate of discount approx* 0.997% per
annum
Range of accepted competitive bids:
High
Low
- 99.753 Equivalent rate of discount approx* 0*977% per annum
- 99*747
f
”
”
"
1.001% ",
*
(4 0 percent of the amount bid for at the low price was accepted)
Federal Reserve
District -
Total
Applied for
Total
Acc epted
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St* Louis
Minneapolis
Kansas'City
Dallas
San Francisco
4
4 1 6 ,2 2 5,0 0 0
700,171,000
8,480,000
24 *751* 000
4*445,000
3 *684 *000 *
58,378,000
6,29 0,000
2,746*000
20,160,000
27,250,000
37,109*000
TOTAL
21 ,925*000
1,364*081,000 .
1 5 ,2 3 0 ,0 0 0
36,781,000
5,645*000
3,744*000
99,386,000
1 2 ,4 1 Ò, 000
4,276,000
21,000,000
29 ,1 1 0 ,0 0 0
75,809,000
41,689* 397,000
oOo
4909 *689*000
$
14* 6 0 0 , 0 0 0 ,0 0 0
a n d th e
c o u n t r ie s u s e d $ 5 * 3 0 0 ,0 0 0 ,0 0 0 o f t h e i r
g o ld
and
d o lla r re s e rv e s .
A s p o in t e d o u t i n
S ta te s
th e
r e p o r t,
a t o t a l o f $ 1 8 ,2 0 0 ,0 0 0 ,0 0 0 o f U n ite d
a s s is t a n c e m as m ade a v a ila b le
d u r in g
th e
o f w h ic h a l l b u t $ 3 ,6 0 0 ,0 0 0 ,0 0 0 w a s u t i l i z e d
D e s p ite
th e
f a c t t h a t m o re th a n
tw o
b y th e
a n d o n e - h a lf y e a r p e r io d
end o f th e
p e r io d .
o n e - h a lf o f a l l U n ite d S t a te s f o r e ig n
w a s r e c e iv e d b y th o s e c o u n t r ie s w h ic h l a t e r b ecam e p a r t ic ip a n t s
E u ro p e a n R e c o v e ry P ro g ra m , th e u n u t i li z e d
w e re b a r e ly s u f f i c i e n t t o
fu n d s
m e e t th e n e e d f o r
in
as o f D ecem ber 3 1 *
a id u n t i l th e
a id
th e
1947,
s ta r t o f th a t
p ro g r a m .
D u r in g
th e
p r i m a r il y i n
in
f ir s t
th e
y e a r o f U n ite d
fo r m
o f g r a n ts
S ta te s p o s t- w a r a id ,
s u c h a s th o s e
e x te n d e d th r o u g h UN ERA, w h ile
th e n e x t y e a r a n d a h a l f a s s is t a n c e w a s m o s t ly i n
O v e r th e
w h ile
th e
e n t ir e
p e r io d
s lig h t ly
m o re th a n
r e m a in d e r c o n s t it u t e d
a s s is t a n c e w as
th e
fo r m
o n e - h a lf o f a l l a id
o f lo a n s .
w as i n
lo a n s
g r a n ts .
A c o m p re h e n s iv e a p p e n d ix o f s t a t i s t i c a l t a b le s s u m m a riz in g th e U n ite d
S t a te
f o r e ig n
a s s is t a n c e
p ro g ra m
T h e s e t a b le s n o t o n ly s h o w th e
c o u n t r y b u t a ls o ,
in
s in c e
J u ly 1 9 4 5 i s
c o n ta in e d i n
a m o u n ts m ade a v a ila b le
th e c a s e o f lo a n s , th e
to
th e
r e p o r t.
e a c h r e c ip ie n t
t o t a l p o s t- w a r c o m m itm e n ts m ade
b y th e m a jo r U n ite d
S t a te s
c o u n tr y .
r e p o r t th e U . S . G o v e rn m e n t h a s re s u m e d p u b lic a t io n
W ith t h i s
in f o r m a t io n
G o v e rn m e n t le n d in g
o n g o ld t r a n s a c t io n s
c o n tin u e d d u r in g th e
w a r.
w it h
le a d in g
a g e n c ie s t o
e a c h f o r e ig n
c o u n t r ie s w h ic h w a s d is
o f
S e c r e ta r y S n y d e r ,
a s C h a irm a n o f th e N a t io n a l A d v is o r y C o u n c il o n
I n t e r n a t i o n a l M o n e ta r y a n d F in a n c ia l P ro b le m s ,
P r e s id e n t a n d t o
C o n g re s s a r e p o r t o f t h e
s ix - m o n th p e r io d
e n d in g M a rc h 3 1 , 1 9 4 8 .
to d a y t r a n s m it t e d t o
C o u n c il1 s a c t i v i t i e s
T h e r e p o r t a n a ly z e s th e m a jo r f i n a n c i a l p ro b le m s o f th e
p e r io d a n d d e s c r ib e s t h e
T he r e p o r t a ls o
b a c k g ro u n d o f th e
d e a ls w it h
F o r e ig n
S ta te s
G o v e rn m e n t a g e n c ie s
s u c h as th e
c o n s id e r a t io n s u n d e r ly in g t h e
to
th e
a id .
G erm an B iz o n e a n d t o
A re s u m e o f t h e
In
it s
r e v ie w
1947 to
o f th e
o f t h e ir
c o n n e c tio n w it h
th e U n ite d
1947
,
S ta te s .
f o r e ig n
s e r v ic e s
fr o m
a n d A u s t r ia
in
th e
In
th e
In
fo r m
o f in t e r im
to
tw o
th e
r e c o n s t r u c t io n
w id e s p r e a d p h y s ic a l d a m a g e , th e w a r
T he r e p o r t c i t e s
a n d o n e - h a lf y e a r p e r io d
r e c e iv e d
th e U n ite d
th e
d if f ic u lt ie s
a id
t h e ir
e x p o r ts
p ro g ra m s o f t h e
to
and
e n d in g D e c e m b e r 3 h
a t o t a l o f $ 4 1 * 6 0 0 ,0 0 0 ,0 0 0 i n
S ta te s w h ile
F o r e ig n
th e
h a d b e co m e c le a r t h a t
b a la n c e o f p a y m e n ts b e tw e e n th e s e c o u n t r ie s
th e
s ix -
1948«
m id d le o f 1 9 4 5 i t
a d d it io n
c o u n t r ie s
o n ly $ 1 9 ,2 0 0 ,0 0 0 ,0 0 0 .
C h in a ,
g iv e n f o r t h e
c o u n t r ie s w o u ld u r g e n t ly n e e d a s s is t a n c e i n
e c o n o m ie s .
a s w e l l a s w it h
p o s t- w a r i n t e r n a t i o n a l f i n a n c i a l s it u a t i o n
p ro d u c e d s e r io u s e c o n o m ic d is lo c a t io n s .
in
e x te n d e d b y th e U n it e d
a n d D e v e lo p m e n t i s
M a rc h 31>
C o u n c il p o in t e d o u t t h a t b y th e
m a n y f o r e ig n
th e
o f t h e I n t e r n a t i o n a l M o n e ta r y R in d a n d th e
I n t e r n a t i o n a l B a n k f o r B e c o n s tr u c t io n
m o n th p e r io d O c to b e r 1 ,
c o n n e c tio n w it h
o f f i n a n c i a l a s s is t a n c e t o
P ra n c e , I t a l y
a f f a ir s
p o s t- w a r
E x p o r t- Im p o r t B a n k ,
e x te n s io n
d u r in g t h e
A s s is ta n c e A c t o f 1 9 4 8 .
r e c e n t d e v e lo p m e n ts i n
A n g lo -A m e r ic a n F in a n c ia l A g re e m e n t a n d c r e d it s
th e
t h is
goods and
c o u n t r y w e re
U n ite d S t a te s
p r o v id e d
TREASURY DEPARTMENT
Information Service
IMMEDIATE RELEASE,
Wednesday, August 4» 194-8
WASHINGTON, D .C .
No* S—804
Secretary Snyder, as ChaLrman of the National Advisory Council on
International Monetary and Financial Problems, today transmitted to the
President and to Congress a report of the Council’s activities during the
six-month period ending March 31, 194 8 .
The report analyzes the major financial problems of the post-war period
and describes the background of the Foreign Assistance Act of 194-8*
The. report also deals with recent developments in connection with the
Anglo-American Financial Agreement and credits extended by the United States
Government agencies such as the Export—Import Bank, as wel as with consid
erations underlying the extension of financial assistance to China, to the
German Bizone and to France, Italy and Austria in the form of interim aid*
A resume of the affair’s of the International Monetary iund ano. the Inter
national Bank for Reconstruction and Development is given for the six-month
period: October 1, 194-7 to March 31, 194-8*
In its review of the post-war international financial situation the
Council pointed out that by the middle of 194-5 it had become clear that many
foreign countries would urgently need assistance in the reconstruction of
their economies. In addition to widespread physical damage, the war pro
duced serious economic dislocations* The report cites the difficulties in
connection with the balance of payments between these countries and the
United 6tabes. In the two aid one-half year period ending December 31, 1947,
foreign countries received a total of 44-1,600,000,000-in goods aid services
from the United States while their exports to this country were only
419.200.000. 000* 'Foreign aid programs of the United States provided
414.600.000. 000 and the countries used '.5 ,300 ,0 0 0,000 of their gold and
dollar reserves*
As Dointed out in the report, a total of 418,200,000,000 of United
States assistance was made available,, during the two and one—half year period
of which all but 43,600,000,000 was utilized by the end of the period*
Despite the fact that more than one-half of all United States foreign aid
was received by those countries which later became participants in the
European Recovery Program, the unutilized funds as of December 31, 1947, were
barely sufficient to meet the need for aid until the start of that program*
During the first year of United States post-war aid, assistance was,^
primarily in the form of grants such as those extended through UNRRA, while
in the next year ana a half assistance was mostly in the form of loans.
Over the entire period slightly more than one-half of all aid was in loens
while the remainder constituted grants.
2
A comprehensive appendix of statistical tables summarizing the United
States foreign assistance program since July 1945 is contained in the report*
These tables not only show the amounts made available to each recipient
country but also, in the case of loans, the total post-wax commitments made
by the magor United States Government lending agencies to each foreign
country* With this report the U. S* Government has resumed publication of
infoimrtion on gold transactions with leading countries which was- discon
tinued during the war.
-
o 0
q
-
TREASURY DEPARTMENT
Information Service
Thursday,
J u l y 29,
WASHINGTON, D .C .
TC - 12
19*1-8
fl
T H E
T R E A S U R Y
,OFFICE GF THE SECRETARY
Thursday« July 29, 12:30 P.M. Secretary
.Snyder will attend a luncheon at the
Mayflower Hotel given by the Committee
on Government Borrowing, American Bank
ers Association.
Friday. July 30. 2:15 P.M. Secretary
Snyder will meet with the Committee on
Government Borrowing, American Bankers
Association, Conference Room, Treasury
Department.
Wednesday. August A. 9:30 A.M. The Sec
retary will address the American Legion
Boys’ Forum of National Government at
American University, Washington, D. C,
Subject: ' ’’Money.”
C A L E N D A R
ments Involving Federal Income Tax Fraud
Cases.”
OFFICE OF THE GENERAL COUNSEL
Monday, September 6 .
Thomas J. Lynch,
General Counsel, will speak before the
Real Property, Probate and Trust Law Sec'
tion of the American Bar Association, at
the Association’s annual convention in
Seattle, Washington.
Tuesday, September 28. Mr. Lynch will
speak before a banquet meeting of the
Tax Executives Institute, Mount Washing
ton Hotel, Bretton Woods, New Hampshire.
COMPTROLLER OF THE CURRENCY
Wednesday. September 22. Secretary _
Snyder will deliver a speech before the
annual meeting of the National Associa
tion of Supervisors of State Banks,
Louisville, Kentucky.
Monday through Saturday. August 2 to 7.
Deputy Comptroller of the Currency C. B.
Upham, will be a member of the' faculty
of the Pacific Banking School to be held
at the University of Washington in
Seattle.
OFFICE OF THE ASSISTANT SECRETARY
Saturday. July 31. 11 A.M*
John S.
Graham, Assistant Secretary, will deliver
an informal talk before the law students
at the University of Virginia, Char
lottesville. Subject: ’’Recent Develop
OFFICE OF TAX LEGISLATIVE COUNSEL
Thursday » July 20, Vanoe N. Kirby, Tax
Legislative Counsel, will lecture before
the Third Institute for the Society of
OFFICE OF TAX LEGISLATIVI] COUNSEL
(Continued)
Association of American Railroads, and
?/ill discuss with them the operation of
the payroll savings plan.
Chartered Life Underwriters, to be held
at the University of Connecticut at
Storrs. Subjects "Income and Estate
Taxes Affecting Life Insurance."
FIRE AND SAFETY COUNCIL
BUREAU OF INTERNAL REVENUE
Thursday, August 19« 12:30 P.M. George JJ
Schoeneman, Commissioner of Internal Rev-*
enue, will be guest speaker at a luncheon
meeting of the National Society of Public
Accountants, Hotel Copley Plaza, Boston,
Massachusetts,
UNITED STATES COAST GUARD
Monday. August 2. 1 - 1:30 P.M, Rear
Admiral Merlin O'Neill, Assistant Com-*
mandant, will speak c5n an NBC network
broadcast of the Navy Band, during the
Coast Guard's anniversary week celebra
tion.
Wednesday. August A, Admiral Joseph F.
Farley, Commandant, will be in Grand
Hayen, Michigan, xvhen the City of Grand
Haven will celebrate the 158th Anniver
sary of the United States Coast Guard.
Mr. Parsons announced today that the
Treasury Department Safety Committee and
the Treasury Department Fire Council have
been merged into one organization, to be
known as the Treasury Department Fire
and Safety Council, This action was
taken, pursuant to a unanimous motion by
the Safety Committee and Fire Council,
with the view of establishing a close
working relationship of these two vital
activities. Paul McDonald, who has been
Chairman of the two organizations, will
serve as Chatfcman of the newly merged
organization. Further details on the
consolidation will be given heads of
Treasury activities in a forthcoming ad
ministrative circular.
RETIREMENTS
Bureau of Public Debt, Office of the
Register, retiring July 31: Mrs. Blanche
White, who has been in the Government
service 35 years; Mrs. Theresa B,
Gotthardt, who has had 30 years' Govern
ment service; Mrs. Ethel G. Hill, who
Thursday. August 5« 12:30 - 1 P.M, Rear
Admiral Raymond T. McElligott, Chief, Of has been in the Government 38 years; and
Miss Mary B. Hayes, who has 5P years'
fice of Personnel, will speak on the .
Mutual Broadcasting System network broad Government service.
cast of the Navy Band.
Mrs. Grace R. Cantrell. Accounts Section,
Security Control Accounts Unit, Bureau
of Public Debt, will retire July 31, She
DIVISION OF SAVINGS BONDS
has been in the Government service 30
years.
Friday. July 30. Vernon L. Clark, Na
tional Director, will attend a luncheon
L. V. Moore. Assistant ‘Chief, Division
meeting of railroad presidents at the
of General Accounts, Office of the
Wednesday. August A« 6:A5 P.M, Rear Ad
miral Earl G. Rose, Chief, Office of Op
erations, will appear on the Dumont Tel
evision Network news program.
- 3 -
RETIREMENTS
(Continued)
Treasurer, will retire July 31. He has
been in the Government and with the Of
fice of the Treasurer 44 years.
Engraving and Printing in 1893, returned
to ,th.e Treasury in 1935, following the
death of her husband, and has since been
employed in the Office of the Commission'
er of Accounts.
Benton C. Gardner, Chief of the Currency
Redemption Division, Office of the Treas
urer, will retire July 31« He has been
Tuesday. July 2 7 1 0 : 3 0 A.M. Dr. Rodolfo
in the Government and with the Treasury
Valenzuela, .Minister of the Supreme Court
over ,46 years.
•
of Argentina, laid a wreath at the Alex
ander Hamilton statue on the south porti
Mrs. Ruby W. Hand, widow of the late
co of the Treasury, in the presence of
Commissioner of Accounts and Deposits,
Secretary Snyder, Associate Justice of
Robert G. Hand, will retire from Treas
the Supreme Court Harold H. Burton, Argen
ury service on Saturday, July 31. Mrs*
tine Ambassador Remorino, and Counselor
Hand, who was first employed as a
of the Argentine Embassy Martin Louis
printer’s assistant in the Bureau of
Drago.
NOTE:
Items for the Treasury Calendar may be phoned to the Information Service
over extensions 2108, 2041; Internal Revenue extensions 650, 651; Coast Guard.
Treasury extension 2993*
m
«
-3 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 th© Reve
ls
h
^v
'V ■
^
-< ?•■r
nue Act of 19U1, 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 ov/ner 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, prescribe
the terms of the Treasury bills and govern the conditions of their issue.
of the circular may be obtained from any Federal Reserve Bank or Branch.
Copies
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 ary such respect shall
be final.
Subject to these reservations, non-competitive tenders for $200,000 or
less without stated price from ary one bidder will be accepted in full at the
average price (in three decimals) of accepted competitive bids.
Settlement for
accepted tenders in accordance with the bids must be made or completed at the
Federal Reserve Bank on
August
I9I1.8
, in cash or other immediately avail-
able funds or in a like face amount of Treasury bills maturing
Cash and exchange tenders will receive equal treatment.
A u g u s t ^ 19U8
Cash adjustments will be
made for differences between the par value of maturing bills accepted in exchange
and the issue price of the new bills.
The income derived from Treasury bills, whether interest or gain from the sale
or other disposition of the bills, shall not have ary exemption, as suchJ and loss
from the sale or other disposition of Treasury bills shall not have ary special
treatment, as such, under the Internal Revenue Code, or laws amendatory or supplemen
tary thereto.
The bills shall be subject to estate, inheritance, gift
or other
excise taxes, Yrhether Federal or State, but shall be exempt from all taxation now or
hereafter imposed on the principal or interest thereof by ary State, or ary of the
possessions of the United States, or by ary local taxing authority.
For purposes
£xK23s££x2;
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Friday, July 30, 19U8.
lo . i-
The Secretary of the Treasury, by this public notice, invites tenders for
$ 800,000,000
, or thereabouts, of
91
in exchange for Treasury bills maturing
-day Treasury bills, for cash and
August
—
5, 19U8
, to be issued on
-------------------
a discount basis under competitive and non-competitive bidding as hereinafter
provided.
The bills of this series will be dated August 5> 19U8
will mature
interest.
November
h*
19U8
, and
, when the face amount will he payable without
They will be issued in bearer form only, and in denominations of
$1,000, $5,000, $10,000, $100,000, $ 5 0 0 ,0 0 0 , and $1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the
daylight saving
closing hour, two o 1clock p.m., Eastern/Simtdsmfc time, Monday, August 2, 19U8
P3T
Tenders will not be received at the Treasury Department, Washington, Each
tender must be for an even multiple of $1,000, and in the case of competitive
tenders 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
TREASURY DEPARTMENT
Information Service
FOR RELEASE, -MORNING NEWSPAPERS,
Friday, July 30« 1948______;
WASHINGTON,
.
No, S-805
■'
The Secretary of the Treasury, by this public notice, invites tenders
for $800,000,000, or thereabouts of 91-day Treasury bills, for cash and in
exchange for Treasury bills maturing August 5, 194$, to be issued on a
discount basis under competitive and non-competitive bidding as hereinafter
providedo The bills of this series will be dated August 5, 194-8* and will
mature November 4-* 194-8, 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)0
Tenders, will be received at Federal Reserve Banks and Branches up to
.the closing hour, tyro o ’clock p 0m©, Eastern daylight saving time, Monday,
August 2, 194-8© Tenders will not be received at the ‘
Treasury Department, Washington© Each tender must be for an even multiple of $1,000, and in the
case of competitive tenders the price offered must be expressed on the
basis of 100,-with not more than three decimals, e 0 g 0, 99*925o Fractions
may not be used© It is urged that tenders be made on the printed forms and
forwarded in the special envelopes which vri.ll be supplied by Federal Reserve
Banks or Branches on application thereforo
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 ac
ceptance 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, non-competitive tenders for $200,000 or less without stated
price from any one bidder vd.ll be accepted in full at the average price
(in three decimals) of accepted competitive bids© Settlement for accepted
tenders in accordance with the bids must be made or completed at the
Federal Reserve Bank on August 5, 194-8, in cash or other immediately avail
able funds or in a like face amount of Treasury bills maturing August 5*
194-8© Cash and exchange tenders will receive equal treatment© Cash
adjustments will be made for differences between the par value of maturing
bills'accepted.in exchange and the issue price of the new bills«,
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 the internal Revenue
Code, or laws amendatory or supplementary thereto«. 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 authority0 For
purposes of taxation the amount of discount at Y/hich 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 assetso Accordingly, the owner
of Treasuiy 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© 418, as amended, and this notice,
prescribe the terms of the Treasuiy bills and govern the conditions of their
issue© Copies of the circular may be obtained from ary Federal Reserve
Bank or Branch«,
oOo
P *
- 9•
I te only remaining au th o rity o f the Board o f Oorernors
to tig h ten c re d it condition* through the medium o f Increasing
re se rre requirem ents, applies« th e re fo re , to hank* located
l a c e n tra i re serre e itle s«
Bat these banks hare shown I te
le a s t ered it expansion l a the re se a t p a st o f any olaas o f
beak«
I t i s o le ar, consequently, th a t the remaining power
o f the Board o f Sorwraors to m ortaso re se rre requirem ents
l a mot w ell su ite d to the nature o f tho problem which mow
confronts as«
th e proposed le g is la tio n would remedy th is
by prorldlng the Board o f Qoreraor* w ith au th o rity to oops
w ith the excessire expansion o f beak c re d it — le n e r e r th is
aay beet be done by the required re se rre method • • in tho
oíase o f bank shore such eo atro l seems most needed«
t h l i o b jactiv e.
I t auttaorlsea Va» Board o f Geverñors o f the
Federal He«erre l y i t n to lacrease meaber bank re ie rre re q a ire mente againat deoend deposita by 10 oeroentege p e ía te and
a g a lm t tla e deposite by % pereeatage p e ía te ,
fbeee penale-
e lb le inoreases eould be la addltlon te tbe e x le tla g ste tu to ry
ansian» and eould be ap p llsd fle id b ly te deaaad deposite la
general» or te those la banke la c e n tra l reserve eltle e » la
reserve e ltle e » e r l a o th er p ísese, sep áretely ; e r te tl* e de
p o sita , as rsq a ire d .
tb e b i l í próvidas tb a t tbese changos la
reserve rsq u lrsa e n ts s b a ll not continué la e ffe e t beyond
íw
P» X950.
a i w r « repulrem ents, «I tiie preaent tim e, are a l th e lr
atn tu to ry mexlma fo r time deposita ln *11 Pauta, and fo r demaná deposita ln *11 benita except those ln e e n tra l reaeree
a lU ti*
fhe preaent re aeree reptil remen t fo r denend deposita
ln haafce ln e e n trn l reeeree e ltle e l e 2% per cen t, *• comparad
«dth * a te tn to ry «axliaum e f 2$ pereent.
re d a ra i Depoait Inaurano« Corporation, «ad tb* t n c s t t n
eo aatttM «f tt* llttM B l I m t U t t M Of (H ^T T lN ri Ut
S tata Bank«, w p ru w t t i t tha ra d e ra i «ad S tato «uparriaery
« a tto r iti•« , bava arcad b a tte r i to o©afina i t e exteasloa
• f toak « ra d it «adar e x la tla g ooaditlona, aa f a r aa po««lble,
to ttoaiaadi thdt «smiI ì ii^Xp produotlon* f i t h i f *^d«» is o p ta it
«eaaaaar daaaada.
««oper atia a .
te e tank«, l a g aaaral, tota« tote« aaat
Z «tould lib a to to ta S d ì eaoaaioa to m a n i
t t o i r f is tila « p ir lt, aad p a r tio u iarly to aaaaaad to a Aaerieaa
•ato ara A aaoeiatiea f a r i t o pracraa to aaw r a to a a a r l t a
w b a t r j r e v rta ila a a t i a toa aato aataa a f ta to « ra d it.
M ,
ia toa fraaaat altoatlon, Z ttito toat it ia «Saar
ttot prudano« ra «airee toat additiaaal iaatraaaata ~
a^M*laaaat toa «atoatarf «etimi «f toa toalcara —
to
to placed
ia toa toada af toa redarai tesar*« Byatea.
Ito Xaflaiatiaa Safara jrear Saaaittee aasSd aaaoaplito
aa fa m
a tl« N tt contro la ea t t e exteaalea o f la etalaea* « n t t l , «teak
te a aeoounted f a r «5 pereea* a f «te f a ta i In creata l a «o m m t
c re d it alaee t o w i n r 1.
S, 5f / à
Ti t i c XZ a f te * .
«aal* lap leaen t «te « te r! pela«
l a «te fraaldea«»e eeeeage.
A fta pala« m i » aa fa lla v a !
*Z
recoaaend «te« «te f a te r a i t e aeree Board tee Biava g reater
authoritjr «a ra g a la ta la flv tle a a rjr Bank eredi***
The expan-
a la a a f te a k eredi*, exeept l a t t e fle ld o a f aaam aer and
r a a l e s ta te fla a a a la g , te a aa«. l a ajr opinion, barn a a a ja r
co n trib u tia c ferv a «a preeea* in fin tio n a ry preoearee.
li
a w t. boneto t , a «teak t t e problea a f la fla U e a aa a l l fraaka.
da m a Cosai «tee kaone, X te n e v in ate b e ll enea Ite * oar
ohief r e li anoe far «te e e a tre l a f ia fla U a a a rjr bank «rate« U v a
la «ha good Judgaent a f te a indiT idual te n te rà l a te a 15.9B0
t e k i l a th è S aited Sta te e .
« te Board a f SoTeraore a f tea
fa d a ra l te te m a Ste«ea» te a O oaptrailer a f te a te rren a ?, « te
p rie ta o f
m m m m ts *
la to exlatenea.
geoda.
X« w m l « U ad d itio n al geoda
I t U la v o ra tiv e, U w rafora, th a ï o ffe rta
ho aada te ro a tra ln the domad f e r aoaroo geode a a t l l «apply
approaohaa domad»
Xt has boon urged th a t th e volane o f oaa eom r c re d it,
deeplte i t a aapr eeedaate d ly U f i la v a i, io loom l a p re p a rtle a
to laoerno t h u m a Uho m oo Im a«la te ly before tha war.
m e l e m ao, b at Z do not eonalder th a t I t lo re le v a n t to
the Insedi a te problea.
Tha roXom at g aeatlea m o to aot
ho« auch eoaaoaar eredi t «ho eonatry ooa hoar* h at hew
y
little It eoa do «diti, alaea, at the prevent U rn , any «*•
dltioa to ooaomer «redit add« te the alroadf etrong preeaure of Inflationary foroea.
axpanalon
Z aubalt, therefore, that aa
o f aeaauaar «redit of Iho «agni todo which haa «#»
eased alaea lovoQbar 1 1« aot la the aatloaal latereat, ead
that it Jaotlfloe the reiapoaltioa at the p r e a m t tine of
f ö ta l
erodi t outatandlng a t «he m t o f Kay
reaahed aa a l l- tla e peak o f » 3,« » ,0 0 0 ,0 0 0 .
«Ma 1« aa la -
area«» a f «1,750,000,000 alaoa tha ex p lratio n a f a n t r a l
le g la la tlo a aa OataObar 1 a f la a t »aar.
«ho laeraaaad aaa a f aaaaaaar a ra d lt l a a »«Pia« a f ia f la tla a a r» pressure« aaa aal» a*« ta thaaa »raeaapee.
«o
wo a l l kaa«, th a eartallaam t a f «ha v red aatlea a f «aaauaer
geode darla» «ha «mp » aria« »ava rie « «a a «reaaadeue de
fe rre d deaaad f a r aneh good*.
Aad, d esplte th a f a a t Ih a t
In d u s tria i produotion ala«« «ha «ad a f th a war haa reaehed
tha hlghsat la v a i «vw a««alaad d arla» peaoetlae, «a bava aa«
»a« basa a* la «a produco aanu»h «soda «a a a tla f» th la deferred
deaaad.
«bara ara e t i l i
bmi»
la p e rta a t eher tage« a f «aada.
Bat a lth p raduatlea aaar oapaelt» la v a la , pur chi «lag posar
—
avaìlable 1» eoasuaar leaaa M a ha «Me« « al» «a b ld up
¡§fi
- 3 -
te thè Trading eith thè Enea/ M t.
Sa J*na 19*7« i>re*ident
Tratn («al«# properly «tated tbat he dld aat «oasidar tbat
b# »ould be Juetlfied la continuing tbe oontrel
«easaaw
eredi t longer andar tbe «attirila ef leglalatloa applleable
primari1/ t» a aarttae eaergeney, and reeeaaeadad tbat _
Coagresa paaa apeeifie laglalatìoa aatberlslng aaeb anatrai.
Coagreaa aeted «a tbia raaonaandatloB laat ananar* bat tba
leglalatloa tbaa eaaeted axtanded tba aatterltr ef tba Board
ef Oeaaraore ealy to totenber 1, 19*7» dlaea tbat data* aa
federai agone/ bea bad atatutory authority te anatrai oeaauaer oredlt. The fenato paaaed a b ill aa Daaaaber 17, to e*tend tba Batterity ef tbe Bear* ef «efemere to torto 1$, 19*9»
bat tbe tonee ef Bepreeentatirea tea aet /et takm aetloa. I
ballare tbat It la argant la Ite aational «elfare tbat eeaeianr eredit eewtrel leglalatioa be eaaatod aa aeea aa yeaalbla.
-
t
-
second and third point« of ti» fresi dont* « pragras —
namely,
the regulation of consumer eredi t and the eontrol of inflationary bank «redit,
millo these too itene aro Ispertant in
the anti-inflationary program, we omet keep ln sind that they
are bnt segments of the over-all proble» and «net bo troatod
in their relation to othor dominant fmotore bearing aero
dirootly on the eost-of-living.
title Ï would implement the eeeond point of the fresident9e message, ehi oh reate as follows?
*X recommend that
eonemasr «redit eontrol« bo restored in order to bold t e w in
flationary «redit.*
I•
>
taring the w r ate the Iwedlate postwar period, the eat■j\ \ ■ •
tension of oonaumsr credit «ss controlled by the Board of
Governors ef the federal Reserve System,' noting la so cord
ano« sdth an Sxenative Order «f the President, issued pursuant
respond to your In v ita tio n to appear before th is Committee,
S< M / 0
end to support Sr».
.
The passage of th le b i l l would
s trik e a major blow against In fla tio n .
Tbs control of in fla tio n i s not only one of the moat
important domestic issu es before the country today, i t i s
also of v i t a l significance to our foreign polioy fo r i t is
well-known th a t influences of ee rta ln groups are depending
upon an eoonoaio collapse in th is country to fu rth e r th e ir
V
own e lse .
Tbs P resident, m h ie aeeeege, outlined mn eig h t-p o in t
program fo r n concerted attack en the problem of high prices
The Treasury Department i s d ire c tly concerned w ith T itle s X
S. 0 e! IO
pad XX o f S i t .
. which doni, resp ectiv ely , with the
TREASURY D E P A R T « T
W a s h in g to n
Secretary Snyder's Statement
on Inflation Control Before the
Senate Banking and Currency Committee
July 30, 1948
Mr* Chairman and members of the Committees I am glad to respond to
your invitation to appear before this Committee, and to support S* 2910*»
The passage of this bill would strike a major blow against inflation.
tic
our
are
own
The control of inflation is- not only one of the most important domes
issues before the country today, it is also of vital significance to
foreign policy for it is well-known that influences of certain groups
depending upon an economic collapse in this country to further their
aims.
The President, in his message, outlined an eight-point program for a
concerted attack on the problem of high prices. The Treasury Department
is directly concerned with Titles I and II of S. 2^10, which deal, respec
tively, with the second and third points of the President's program —
namely, the regulation of consumer credit and the control of inflationary
bank credit*. While these two items are important in the anti-inflationary
program, we must keep in mind that they are but segments of the over—all
problem and must be treated in their relation to other dominant factors
bearing more directly on the cost-of-living.
Title I would implement the second point of the President's message,
which reads as follows: "I recommend that consumer credit controls be
restored in order to hold down inflationary credit*"
During the war and the immediate postwar period, the extension of con
sumer credit was controlled by the Board of Governors of the Federal Reserve
System, acting in accordance with an Executive Order of the President,
issued pursuant to the Trading with the Enemy Act. In June 1947, President
Truman quite propei’ly stated that he did not consider that he would be
justified in continuing the control of consumer credit longer under the
authority of legislation applicable primarily to a wartime emergency, and
recommended that Congress pass specific legislation authorizing such control.
Congress acted on this recommendation last summer, but the legislation then
enacted extended the authority of the Board of Governors only to November 1,
1947. Since that date, no Federal agency has had statutory authority to .
control consumer credit. The Senate passed a bill on December 17, to extend
the authority of the Board of Governors to March 15* 1949* but the House of
Representatives has not yet taken action* I believe that it is urgent in
the national welfare that consumer credit control legislation be enacted
as soon as possible.
Total consumer credit outstanding at the end of May reached an all-time
peak of $13,800,000,000. This is an increase of $1,7$0,000,000 since the
expiration of control legislation on November 1 of last year.
S— 8 O6
The Increased use of consumer credit in a period of inflationary pres
sures can only add to those pressures» As we all know, the curtailment of
the production of consumer goods during the war period gave rise to a tre
mendous deferred demand for such goods* And, despite the fact that indus
trial-.production since the end of the war has reached the highest level ever
attained during peacetime, we have not yet been able to produce enough goods
to satisfy this deferred demand. There are still many important shortages
of goodsc But with production near capacity levels, purchasing power made
available by consumer loans can be used only to bid up prices of consumers*
goods* It cannot cali additional goods into existence* It is imperative,
therefore* that efforts be made to restrain the demand for scarce goods
until supply approaches demand.
It has been urged that the volume of consumer credit, despite its
unprecedentedly high level, is lower in proportion to incomes than vías the
case immediately before the war. This is true, but I do not consider that
it is relevant to the immediate problem. The relevant question now is not
how much consumer credit the country can bear, but how little it can do with,
since, at the present time, any addition to consumer credit adds to the
already strong pressure of inflationary forces. I submit, therefore, that
an expansion of consumer credit of the magnitude vihich has occurred since
November 1 is not in the national interest, and that it justifies the reim
position at the presenb time of moderate controls on the extension of
installment credit, which has accounted for 85 percent of the total increase
in consumer credit since November 1.
At this point, Mr. Chairman, I would like to quote from testimony which
I gave to two committees here last fall, only to indicate that I have from
the beginning urged this type of legislation. I sm now quoting from testi
mony given before the House Committee last fall, and before the Joint
Economic Committee:
"Anti-inflationary measures which may be taken in the monetary field
are of course but a segment of the whole program, and could not, by any
means, solve the problem alone. But such steps as can be taken when related
to those in other fields will of course be helpful in the overall solution.
"The President is greatly disturbed in regard to prise inflation, which
threatens our whole economic structure, and he is convinced that the Congress
is equally concerned.
"The President has laid special emphasis on voluntary actions on the
part of businessmen, labor leaders, farmers, and consumers to hold prices
down* Intensified efforts will be continued to obtain voluntary restraint*
Certain powers are necessary, however, to fortify the voluntary efforts*
"The President has suggested that consideration be given to the follow
ing monetary measures: ona, that Consumer Credit Controls should be restored
and some restraint should be placed on inflationary bank creditj two,
Legislation should be provided to prevent excessive speculation on the
Commodity Exchanges; three, intensified activity in the sale of savings
bonds* . . * . . * * * #
- 3 -
«As to item one, ’Restoration of Consumer Credit Controls’ and ’Restraint
on Inflationary Bank Credit
these matters have been discussed by Federal
Reserve officials* As to consumer credit controls, I am in favor of their
restoration*
’’The most effective types of credit control are those 'which strike at
the individual forms of credit extension which are contributing to infla
tionary pressures* The most important single form of such credit extension
at the present time is in consumer credit*
’’Total consumer credit outstanding at the end of September reached an
all-time peak of |11,400,000., 000. At the end of 1945, it amounted to only
$6,600,000,000* Prior to December 1946, total consumer loans outstanding
at any one time had never reached the $10,000,000,000 level*
"This increased use of consumer credit in the present period of infla
tionary pressures can only add to those pressures* As we all know, the
Curtailment of the production of consumer goods during the war period gave
rise to a tremendous deferred demand for such goods* As we all know,
despite the fact that industrial production during 1947 has reached the
highest level ever attained during peacetime, we have not yet been able to
produce enough goods to satisfy this deferred demand* There still exist
many important shortages of goods* Bub with production near capacity
levels, purchasing power made available by consumer loans can be used only
to bid up prices of consumers* goods, not to purchase more goods* It is
imperative, therefore, that efforts be made to restrain the demahd for
scarce goods until supply approaches demand*
’*Money market interest rates form a smell part of the total cost of
consumer credit, and changes in such rates are almost powerless to limit
its extension* It is necessary to cover specifically by regulation such
matters on minimum down payments and the maximum periods over which payments
may be spread on installment purchases of consumers’ goods in order to
restrain this type of inflationary credit*’’
Title II of S* 2910 would implement the third point in the President’s
message* This point reads as follows: "I recommend that the Federal
Reserve Board be given greater authority to regulate inflationary bank
credit*" The expansion of bank credit, except in the fields of consumer
and real estate financing, has not, in my opinion, been a major contributing
force to present inflationary pressures* We must, however, attack the problem
of inflation on all fronts*
As this Committee knows, I have always believed that our chief reliance
for the control of inflationary bank credit lies in the good judgment of
the individual bankers in the 15,000 banks in Hie United States* The Board
of Governors of the Federal Reserve System, the Comptroller of the Currency,
the Federal Deposit Insurance Corporation, and the Executive Committee of
the National Association of Supervisors of State Banks, representing the
Federal and State supervisory authorities, have urged bankers to confine,
the extension of bank credit under existing conditions, as far as possible,
-
4 -
to loans that would help production, rather than increase consumer demands*
The banks, in general, have been most cooperative* I should like to take
this occasion to commend their public spirit, and particularly to commend
the American Bankers Association for its program to secure the maximum
voluntary curtailment in the extension of bank credit*
But, in the present situation, I think that it is clear that prudence
requires that additional instruments — to supplement the voluntary action
of the bankers — be placed in the hands of the'Federal Reserve System*
At this point I would like to refer to some previous testimony before
two committees of the Congress last November:
«In reference to the second part of item 1 *Some restriction should
be placed on inflationary bank credit*, this is a matter under the^ juris
diction of the Board of Governors of the Federal Reserve System which has
the responsibility for overall bank credit control* Mr* Eccles has dis
cussed this natter with you in considerable detail* He and I have dis
cussed it together on a number of occasions and we are entirely in agreement
that the objective is fundamental to the inflation control program*”
In order again to clarify the background of the legislative history,
I would like to inject here a statement by the Chairman of the Federal
Reserve Board on December 10th at the conclusion of the hearings that were
conducted at that time:
”In view of the fact that some of the press has emphasized a differ
ence in viewpoint between Secretary Snyder and myself in regard to the
Board*s so-called special reserve proposal, I would like to take this oppor
tunity to clarify the record* I have discussed the matter with the Secretary*
The fact is that the area of agreement between us is much more complete than
has been represented* Such difference as exists is in evaluating the degree
of restraint on inflationary expansion of bank credit that would be exerted
by the special reserve requirement* He has expressed to this Committee some
doubt as to its effectiveness* I am more sanguine about it* We both feel
that whether the special reserve is needed at all or whether some stronger
measure of restraint may be needed next year depends on factors which cannot
be determined in advance with certainty at this time* We are in full agree
ment:
"1* That the most effective anti-inflationary measure has been and
should continue to be a vigorous fiscal program to insure the largest possi
ble budgetary surplus consistent with the Government*s obligations at home
and abroad*
”2* That coupled with an intensified savings bond campaign, the pro
gram accomplishes two vital purposes* To the extent that savings of the
public are invested in savings bonds, spendable funds are taken out of the
market place at this time of excessive demand and insufficient supply and
can be used to pay off maturing debt held by the banking system* Likewise,
a budgetary surplus can be used to reduce, bank—held debt* Both measures
reverse the process by which the money supply was increased during ihe war
and are effective anti-inflationary influences*
- 5 -
u% That the program which the Treasury and the Open Market Commit
tee have been pursuing during the year has been effective and will continue
to exert restraint during the next few months* when the Treasury will con
tinue to have a substantial cash balance that can be used to reduce bankheld public debt#
UA*> That some additional restraint may be expected as a result of the
joint statement of Federal and State bank supervisory authorities cautioning
banks against overextension and inflationary lending*
"5# That the problem will present a different phase when current debtpayment operations a.re no longer available* If it appears that other
restrictive steps are needed* increased reserve requirements or possibly
some stronger measure may be necessary*
H6* That this will depend on the course of events and in part upon
self-imposed restraint by the banking community, which has gained a broader
understanding of the problem as a result of discussions before Congress and
in the press*
n7* That the Board*s proposal is not in any sense a substitute for
but a supplement to the fiscal program and direct action on other fronts
where inflationary forces are generated but cannot be corrected ty monetary
and fiscal policy alone*
n8* That under present and prospective conditions it is essential to
maintain the established 2-1/2 per cent rate on long-term marketable
Government securities*
”9«
That restraints should be reinstated on installment credit#
“The area of disagreement, therefore, narrows down to whether the
special reserve would be appropriate if additional measures prove necessary
to limit the .now unrestricted access of the banking system to reserves upon
which a multiple expansion of bank credit can be built.”
I go back to my testimony before the other committees:
”1 would like to point out that I have a positive feeling that the
major objective at this time is to maintain the fiscal soundness of the
Government and the continued confidence of the public in Government obliga
tions* I feel that the attack on the problem can best be handled by the
application of a substantial budget surplus to the reduction of the public
debt in the manner which will extinguish an equivalent amount of bank-held
government securities* #
w
-
6-
I go back now to my prepared testimony. To repeat one sentence;
nIn the present situation, I think that it is clear that prudence requires
that additional instruments — to supplement the voluntary action of the
bankers — be placed in the hands of the Federal Reserve System*11
The legislation beforq your Committee would accomplish this objective.
It authorizes the Board of Governors of the Federal Reserve System, to
increase member bank reserve requirements against demand deposits by
10 percentage points and against time deposits by 4 percentage points.
Those permissible increases would bo in addition to. the existing statutory
maxima, and could be applied flexibly to demand deposits in general, or to
those in banks in central reserve cities, in reserve cities, or in other
places, separately; or to time deposits, as required* The bill provides
that these changes in reserve reouirements shall not continue in effect
beyond June 30, 1950*
The situation — which has changed, Mr* Chairman, since my brief
previous testimony — is the fact that we no longer have the prospects of
a surplus for the Treasury to use against inflationary pressures*
Reserve requirements, at the present time, are at their statutory
maxima for time deposits in all banks, and for demand deposits in all
banks except those in central reserve cities. The present reserve require
ment for demand deposits in banks in central reserve cities is 24 percent*
as compared with a statutory maximum, of 26 percent.
The only remaining authority of the Board of Governors to tighten
credit conditions through the medium of Increasing reserve requirements,
applies, therefore, to banks located in central reserve cities* But these
banks have shown the least credit expansion in uhe recent past of any class
of bank. It is clear, consequently, that the remaining power of the
Board of Governors to increase reserve requirements is not well suited to
the nature of the problem which now confronts us* The proposed legislation
would remedy this by providing the Board of Governors with authority to
cope with the excessive expansion of bank credit — whenever this m a y best
be done by the required reserve method — in the class of bank where such
control seems most needed*
- o 0 o -
M E D I A T E RELEASE
Monday, August 2, 1948
CQ
No. S-807
action of President Truman
August
in proclaiming
nCoast Guard Day."
added recognition of the 0oast Guard
as one of the outstanding services of our nation
is richly deserved.
I am sure that the President's tribute,
and the annual observances of
the day in
accordance with the proclamation will inspire
the Coast Guard to even greater effort in its
missions of maritime safety, military preparedness,
and
many other important responsibilities.
TREASURY DEPARTMENT
Information Service
WASHINGTON, D .C .
IMMEDIATE RELEASE
Monday, August 2, 1948
No. S-807
Secretary Snyder today issue:! the following statement:
The Treasury Department, of which the United
States Coast Guard is a part, is gratified at the
action of President Truman in proclaiming August 411Coast Guard Day,11
This added recognition of the Coast Guard as
one of the outstanding services of our nation is
richly deserved.
I am sure that the President’s tribute, and
the annu-' 1 observances of the day in accordance
with the proclamation, will inspire the Coast
Guard to even greater effort in Its missions of
maritime safety,,military preparedness, and
many other important responsibilities.
- o 0 o
BXUEAS*, lORNIHG KSKSEWPKRS,
Tae.day, A a w t 3, 1948.
5
The Secretary of the Treasury announced last evening that the tenders for
(800,000,000, or thereabouts, of 91-day Treasury bills to be dated August 8 and to matun
November 4, 1948, which were offered July 30, 1948, were opened at the federal Reserve
Banks on August 2.
The details of this issue are as follows;
Total applied for - (1,907,403,000
Total accepted
*
802,498,000
Average price
{includes (43,449,000 entered on a non
competitive basis and accepted in full at
the average price shown below)
- 99*748 Equivalent rate of discount approx. 0.997$ per annum
Range of accepted competitive bids;
High
low
- 99.740 Equivalent rate of discount approx. 0.949$ par annum
- 99.747
*
»
"
*
*
1*001$ *
«
(88 percent of the «mount bid for at the low price was accepted)
federal Reserve
District
Total
Applied for
Total
Accepted
Boston
New Tork
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San franciseo
(
9,044,000
1,309,151,000
84,498,000
34,828,000
5,495,000
7,382,000
138,534,000
3,343,000
4,470,000
9,780,000
7,140,000
149,760,000
# 8,706,000
544,991,000
14,184,000
89,578,000
3,535,000
7,332,000
92,747,000
3,199,000
5,318,000
9,144,000
7,088,000
74,880.000
(1,707,403,000
(802,498,000
TOTAL
RELEASE H O M I N G NEWSPAPERS,
Tuesday, August 3, 19¿8»
No» S~808
The Secretary of the Treasury announced last evening that the tenders
for ^800,000,000, or thereabouts, of 91-day Treasury bills to be dated
August
5 and to mature November 4* 1948, which were offered July 30, 1948,
were opened at the Federal Reserve Banks on August 2•
The details of this issue are as follows:
Total .applied for - 41,707,403,000
Total accepted
802,692,000
Average price
(includes 443*669,000 entered on
a non-competitive basis and
accepted in full at the average
price shown below)
- 99*748 Equivalent rate of discount approx. 0.997$
per annum
Range of accepted competitive bids:
High
- 99*760 Equivalent rate of discount approx.0.949%
per annum
99*747 Equivalent rate of discount approx.1*001%
per annum
Low
(28 percent of the amount bid for at the low price was accepted)
Federal Reserve
District
.Total
.applied for
Total
Accepted
Boston
New York
Philadelphia
Cleveland
Bic hmond
Atlanta
Chic ago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
4
9,066,000
1,309,151,0 0 0
26,492,000
36,823,000
5,69 5,000
7,382,000
138,336,000
3,343,000
4,470,000
9,720,000
7,160,000
149,760,000
4 , 8 ,70 6 ,0 0 0
41,707,403,000
4802,692,000
TOTAL
- o 0 o
546,991,000
16,124,000
29,578,000
3,53.5,000
7,382,000
92,747,000
3,199,000
3,318,000
9,144,000
7,088,000
74,880,000
lcaat credlt «sepan»lo» la tü« r«e»nt p««t o f M f ola«« of bank.
X* 1« «loar, eons«qu«ntly, that th« raaalnlng p o w o
t&m
loürá of dovwrnors to la im t « recorro roquiromonts la not
«911 anitt# to th# nctoro of th# pronta «tullí no# confronte
mm*
fho proponed l#gSftetiím woulé roaody tillo by proridlng
th# So*rd @t Ooromora nHÉt authorlty to copo with tilo cxooo~
otro expandes of bank eredit ~
ohonorcr thio «ay boot feo
do»# by tho roqutrod recorro nethod — la th# d aca of bank
d o !# ouoh control o# m m moat acodad*
Attguet i*
increases would be le addition to the exlsting statutory
m&xiaa, and eotxld be applied flexlbly te dem&nd deposite le
general, or te those le banks In central reserve sities, le
reserve sities, or la other písese, ssparatsly; er te t i »
deposita, se required,
The bilí presides that thés* changes
in reserve requirements shsll not continue lu sffset beyond
y e n e 3 0 , 1990*
Reserve reqelreaeste^ et the présent tiste, ere et their
statutory maxime for tisis deposité le sil benita, and for
dsmand deposite le ell banks exeept those 1» eentrel reserve
sities»
The présent reserve re ulreaent for dea&nd deposite
In hanks In central reserve sities le 2b percent, es compared
elth e statutory maximum of 26 percent»
tte snly re»lnlng enthorlty ef ths Boerd of Govsmors
to t i n t o s ersdlt conditions through the medien of Inereaelng
reservo requlreaent», epplles, therefore, to banka loc&ted
ln central reserve eitles.
But theee benks have shown the
•
11
d e f ic its were p a rt of tho p ria# of winning the war and were
incurred dewplte an eightfold increase la our t a r receipt#
a# compared with th e period ¿m ed iately preceding the war*
th e debt can be reduced ~~ and the process which attended it#
creatio n reversed
only by continuing budget surpluses»
Unfortunately, as a re s u lt both of the t a r reduction
b i l l and of the increased foreign a id and defense expenditures
V '
■.
\
nade necessary by th e tense in tern atio n al s itu a tio n , we
no longer have a budget surplus a t our disposal as a weapon fo r
confuting in fla tio n a ry pressures*
In tb s flaeal-n o aetary area,
we o u st, th erefore, lean to an increasing extent upon other
m asures fo r the r e s tr ic tio n of basâe orodit»
A e le g is la tio n befóse your Committee le bern of th ie
necessity*
I t authorises the Board of Governor# of the federal
deserve System to increase member bant reserve requirem ent^
against deaand deposits by 10 percentage points and against
tin e deposits by k percentage pelate*
A se e perm issible
■í??;
- i© -
reduction occurred la bank~held s e c u ritle s , but an additional
#3, 5X>,000,000 of se c u ritle s have been tran sferred from banfc
to nonbank oumershlp.
In the course of oondueting th is progra», there ha ve
been perlo&s when our Inmediata objective haa been to re s t rain
prlee incre&ses In Government e e e u rltle s, and other perlada
la which the long-term Government security market has been
supported.
The degree of s ta b lllty which theee operatlona
h&ve imparted to the whole high-grade secu rity aarket has been
of major beneflt to the busineas cenaran i t y.
During the heavy ta x -e o lle e tle a period of J&nuary, february, and Maroh o f th le year, we had a budget aurplu» o f over
$6,000,000,000.
P art of th is eae used to r e ti r e debt, and
p a rt ene saved for th e lean t& x-oollection months.
Our preeent heavy debt, wlth the re s o lta n t addltlon to
the noney supply and to the stock of liq u id aaaeta, was oreated,
fo r the aoat p a rt, as a re s u lt of our wartlne d é fic its .
These
%
- 9-
secure the asrlnwsi roluntary curtailm ent In the extension at
bank c re d it.
>
But, lu tho present s itu a tio n , 1 think i t i t c le a r
th a t prudence requires th a t additional Instrumente ~ to sup
plement the voluntary action of the hankers — he placed in
the hands cf the Federal Reserve System*
At th is point 1 would lik e to quote again from my
testimony on in fla tio n control l a s t Icvemhers
#1 m ild llk e to polnt out tim t 1 havo a
p o sitiv e feelin g th a t the major objeetive a t th is
time la to s a in ta in the f is c a l soundness of the
Government and the contlnued confldenee of the
public ln Government obligatIons* 1 fe e l th a t th e
attao k on the prohlem can best Im handled by the
ap p lleatio a of a eubstantial budget aurplua to tho
reduction of tho public debt ln tho manner vhich
«111 extinguiah an äquivalent amount o f bank-held
govemment s e c u ritie s . Slnce the end of the «ar,
the freasury has conducted i t s program of debt
management in such a «ay ae to reduee ln flatio n ary
preeeures vhenever possible by paylng o ff tenk-held
securities* #
1 believe th a t we have reason to bo proud of the manner
in th ieh th is program te e been conducted*
The debt te e been
reduced by ysEBff #26, 500, 000,000 since the poatuar peak reached
at the end of February IjW ,
Sot only tea the tede of this
» •& M t(to financing, baa not, la ay opinion, boon • major
contributing fo rw to present in fla tio n a ry j n i m m .
no
m o t, however, a tta c k tba problaa a f In fla tio n on a l l ( w a t t ,
l bava alv&ya belisvad th a t our chief ralian ao fo r the
eoatrol a f la fla tle a a r y bank c re d it l&aa In tho good Judgaent
a f tha Individual bankers l a tha 15,000 banka la tba Baited
■ tataa.
tha
Tba Board o f devaraara a f tba fed eral Beaarve System,
Ooatpt r a i l e r
a f tba Ourreaay, tha Tadaral Dapoalt Inauraaoa
Corporation, and tba Eaoautiva Owraittaa a f tba Rational
Association o f Bapervlaort a f Btata Banka, representing tha
fa d a ra l and Btata su p er« aory a a th a n tla a , bava urged bankers
to aaafiaa tba extension a f bank o ra d it wnfttr ex istin g oond ltla a a , na f a r aa p a ssib le , to laaaa Mutt would balp pro doet l on,
ra tb a r titan iaaraaaa ooneuaer daaaada.
bava bam a a st ooopers tiv e .
oadlaa to aomaad tb a ir
Tba banka, l a geaaral,
X should U ka to taka th is ea-
public
s p i r i t , and p a rtic u la rly to
sam aad tba Aawrlaan Baccara Assoclatlon fo r i t s pragm a to
t t tba sm& o f 19^5# l t «»ifttftd te only 16,600,000*000.
P rior te Oaeamber Ìf4é* to ta l 0011statar Ioana outstandla g a t m w MS timo bad aerar raasbad ili# $10,000,000,000
Issai*
" te la imeraased mas o f sostasnar ered it la te#
prssaat parto* a f iafl& tio n ary prssemra# san oalp a è l
io tessa pressurea. à i ss a l l basa, tea eu rtailaen t
0f te# ^ » É it a o t o f eomammsr goote doping tee mar
parloà gasa ria# to a tremandoti« daforred temand fa r
snob goote* M so a l l lato#, a sso lta Hi# fa s t t to i la *
Ornat r i a l production dmrtftg 19^7 «*s reaohed thè fclgheat
la s s i amar atta!»ad te rla g peacatiae, sa basa not f o t
boa» abla to protesa ti@ w goote to s a tls fp tb la te*
ferrod temasi*. fbars s tili a x la t m n j importami «hortagaa o f goote# Bmt « Ita production osar capacity Issala«
pmrsb&slsig parar mate a ssi labi# by smammar Ioana san ba
naso oaly to big mp prie«# of « o t r a i r i 1 g eo d e, noi te
p x r t e n mora goote* I t l a Imparatila« theroforo, te s t
a ffo rta ba moda te ro s tra ta tea desunta fa r «care# p e d i
u n til « w l | approaobaa demani*
% t t p market In ta ra a t ra te a fo ra a email p ari of
tea to t a l a s s i of sonemmsr c re d it, rad ohanges Im sttab
ra te a ara almoat posarlaaa te llm lt I t a am taanm * I t
l a msssssary te ©orar sp e sific u lly by regul&tion ante
matterà aa H M m team payaaats «ad tea maximum parloda
o rar iH d i payment« may b# i p s t d om i t i t t l l a t i l pur»
obaaat o f oonstimirs9 goote Im m é m te raatralm te la
typa o f Imflatiextary m ad lt« 1
Pitia l i of 1*1* jote sotsld implosemi tea telrd potai Im
tea Frantemi9a program* tela potai rsata aa follosat
*1
r t m u t d test tea Faterai Issare# Board ba g ira i graatar
amtbority te rsgulat# lofiotlomai
imi credit** tea t p o r
aloo af batik arsdit, sxsspt lm tea fialda of aooammar and
jwtr Ceissdtt««, «a« b*for« th . M
Coanltt«« on th»
H o ao ale l ^ l t
^ i ^ ì a f U u e w j r M aterna ià i< ^ a t| ba
in tea aaaatary f la ld ara « f co arta bab a aagaant a f
J&»
a«d aouid n a t, by aay aaaat» «ala*
bba probi«» a la a t. S u i © ® , atap* as aaa ba talea»
*b*n ra la ta d te tisana I» ©tfcar fla ld « «111 * f eoarse
ba h s lp fu l la tea o w a ll solutio n»
**ba fra a ld a a t l a g raatly teatarbed in ragard ba
pplaa la f la tio » , a l i t ò U r u t t n i onr «boia economie
atractu r« , aad ha la aaaalaaad tb a t tea Oaagraaa la
aqually aonaantad.
*$ba frasid « n t bai la ld apaeì&l « p l i i i i a» aal»
aatary aablaaa a» tilt parb a f bualnaasatn» labar
laadara, f&raara, aad eoaauaara ba bald prìeaa dova.
Intanai f i «a affarba « i l i ba aaatlaaad ba abbai»
▼oluntarjr r a s t r a l a t . Cartai» panar# ara naaeaaary,
^ aaaaw t ia fb r tlfy tha «oluatary affarba»
•tba fraaldant ha# auggastad bhab ea&aldaratldA
ba gira» ba d a follawisg ^ > « t» t Maturasi oaa,
teat Conatowr Gradit Cantrala should ba raatarad and
m m rastralab tóiould ba plaaad a» inflatlonary basii
aradlbf bua» Laglalatla» should ba aroaidad ba praaaab
axaasalva spaeulatìon a» bha Gamaadlty Ssohangoi;
tbraa, liita»aifi«& seti vi ty 1» tba aala af Malaga
banda*
* • *
*Aa lo Ita * aat» Raabarabla» a f Caaaaaar Cradlb
Controla ami R aatralat a» l a t t a tlo aary t e s i G raditf
t e t t a aatbara bava bua» di aeuaaad by f a te ra i Raaarvt
a f f i d a l a . te te consumar aradib a n atrala, 1 m in
favor a f te a ìr raabarabla».
•fba aost a ffa s tiv a typaa a f gradìt e a a tra l ara
teaaa «ftlah s t r i l a ab te a individuai forma a f aradib
axbaaaia» «hi ah ara o aatrìb u tìag te la fla b la a a ry p rtt*
sarta# fba aaab ìa p a rta n t d a g l# far» a f tu te aradib
axttaaloa ab tea presta* t l m la 1» consumar aradib*
*t o t a l sans%ss#r aradib outs tendina ab tea aad a f
Septaabar ra&abed a» a ll~ tiM pani a f 111,*00,000,000.
t°1
5
t© Xnmmm t t e a mw th« m m Xam úXm talf tefor© th« «ar.
filis
i s t m ( bat 1 ü aot ©on*ld«r t t e t i t i s roisvan t lo th« i a aodlat© profcltra.
fh© r slsv a a t quostioa mm i s aot h©*r « É
©oasasBsr ©rodlt th© eouatry ©a» bt«i»i btxl l » f UttX© i t t a i
d© with; sino#» a t tdbkf pr©s«nt tía©* sur ©dditlon t© eon©aa©r
©r©dit adda to th© alr#©dy straag p r i i f w i ©f laflatioaai*?
im m n *
1 ©ahalt* tlM Ptforo, t t e t su «xoansion ©f eo&stacr
cra d it ©f ti*« aagattage
te© ©o©«Fr©d sino© M©v«sb©r 1 i s
a©t la tM aatlaaaX int©r©st* aad t t e t i t Ju a titim * th© rala*
p o sltlo n ©t th© p rsssat ti*© of mámrmta control« ©a th© ©a»
to a sio a ©f la sta lla © n t erodit» which t e s a©e©uat©d f©r ©rar
.#§ perodnt ©f th# totaX iaorsms© la eoasisacr erad it siao©
H o m t e 1*
it t M i polnt* ir* Chaira©«* 1 «©«Id lite t© qssof# fros
tostlaoajr ©hite X gara t© t«© Coagrossloaal ©osamltt©©© Xsst faXX*
1 lo thl© oal| t© isHoato ttet t tea© froa th© teglaalag «rg©&
thls tjm© ©f l#©lslation.
X gsiro IM i tostiaonar la *t fa ii
legislation on Hovenbsr
1
of loot year.
The l i m a t i oso of oonsuner oreait In t period of inflo»
tlonary p n t i m « esu only add to those pressures. Ae wo
«11
kn«! the mirtailaent of the production of eoasuner goods dorlag the
m r
period gave rise to « tremendous deferred densnd
for such goods. And, deVito the foot that Industrial production
sine# the end of the «er has roasted the highest level ever at
tained daring passatine, «e have not got been able to prodtxee
enough goods to satisfy this deferred desate. Itere are itili
«any lapertant ehortages of goods. Bat with production m r
capacity levels, purchasing power nade available by consumer
loans oaa bo used only to bid up prions of consonar* 9 goods.
It cannot sail additional good« Into enlátense. it Is Impera
tive, therefore, that efforts be nado te restrain the demand
for soaroo good« until supply approaches demand.
it has boon wgod that the volano of oeasuaer credit,
despite Its ui^»reoedentedly high level, is lover in proportion
fl 1
• 3 -
..i
MÊm■
Justlfied la coatittulng thè control of consumer or«dit longer
wtâsr th# aothorlty of législation applicable priaarlly to a
ififftl — «argonoy» aad n n h m M
thaï Congrete Pea» «peolfio
legisla tica aattorlilBt «Mit eoatrol.
Congre«« «•*•* •*
recommendation U «* mammr, but the^legielation then enaeted
extended thè authority of thè Board of Oownora onljr te
Koeeaber 1, 15* 7. Blnoo that dato» ne federai agsney ha« had
■ tatatory autberlty to oentrol consumer eredit. The fonato
paased a b ill oa Beeoteer
17»
te extend thè aathorlty of tee
Board of Ooveraere te Baroh 15, 19*9. bnt tea Boa«o of Roproaestatiree has not yet talen action,
1 bolineo that it io argent
la thè national welfsre that m u h w eredit oentrol logislntioa
ho eaaoted ao neon a« p o aaib le .
to ta l oonauaer o ro d lt oatotanding a t tho and o f l a u
roachod an a ll- t ia e peak o f U h , 1 50 , 0 0 0 ,0 0 0 .
T h ia i s oa in -
crease o f o ra r t * , 0 0 0 ,000,000 «ino# thè e x p ira tio n o f co n tro l
—
§
oanely, the regulation of consumer oredit end the control of
Inflationary honk credit,
While these too Itema ore Inportent
in the anti-inflationary pregra«, no m e t keep in sind that
they ere tat aegment* of the o f O N d l problon end ««tat be
treated in their relation to other deninant footer« bearing
acre directly on the eoat-of-living.
title 1 could Implement the aeoond point of the Freddent*a program, which rend« aa folio*«:
*1 recommend that
coneumer «edit control« be re«tered in order to hold data
inflationary oredit.®
taring the car end the lanediate poetnar period, the on»
tonalon of eeneuner credit eoa controlled by the Board of
Governor* of the Federal Heaerve Syaten, acting In accordance
«ith m EmmMm t a d « of the President, leaned p«enant to
the trading with B e Ineny Aet.
In June Iflf, taoeidont Truman
O d h properly otatod that he did not ooneidor that ho m U
bo
j4p7
Hr. tialrsum «ad
ü t e i al H ü
^«sdititi
privilege to appear before thie Comad ttee
fÜÜÉ#
1h« paeeago of till* M U
It
1« ft
im «apport of 1* II*
eoald strike o major blow against
Inflation«
fit#
control of Inflation 1« not only on« of tho meet io»
portant dotatiti# issues befere the eoi»try today, it 1« alno
of vital tigni fi caneo to ear foreign policy for it it toll*
known that influences of ear tain groupe are depending apon an
eeononie collapse in thie country to farther their own nine*
the President, in hie nassage of «Inly if, oat li ned an
eight^point program for a eenoerted attask on the problem of
high prices.
The Treasury department le dlreetly eoneerned
with title# 1 and U
of 1* ft. 7Otó, ehi eh deal, respectively,
with the eeeond and third pointe of the President*« program —
TREASURY DEPARTMENT
Washington
Secretary Snyder’s Statement
on Inflation Control Before the
House Banking and Currency Committee
Wednesday, August 4-, 194-3
Mr. Chairman and members of the Committee: It is a privilege to ap
pear before this Committee in support of H. R. 7062. The passage of this
bill would strike a major blow against inflation.
The control of inflation is not only one of the most important domes
tic issues before the country today, it is also of vital significance to
our foreign policy. An economic collapse in this country without doubt
would prevent the world economic recovery which is essential to lasting
world peace. It would further the aims of those who would like to see
our foreign policy fail — who do not want world economic recovery.
The President, in his message of July 27, outlined an eight-point
program for a concerted attack on the problem of high prices. The
Treasury Department is directly concerned with Titles I and II of H. R.
7062, which deal, respectively, with the second and third points of the
President’s program — namely, the. regulation of consumer credit and the
control of inflationary bank credit. While these two items are important
in the anti-inflationary program, we must keep in mind that they are but
segments of the over-all problem and must be treated in their relation to
other dominant factors bearing more directly on the cost-of-living.
Title I would implement the second point of the President’s program,
which reads as follows: ”1 recommend that consumer credit controls be
restored in order to hold down inflationary credit.”
During the war and the immediate postwar period, the extension of
consumer credit was controlled by the Board of Governors of the Federal
Reserve System, acting in accordance with an Executive Order of the Presi
dent, issued pursuant to the Trading with the Enemy Act. In June 194-7,
President Truman quite properly stated that he did not consider that h^
would be justified in continuing the control of consumer credit longer
under the authority of legislation applicable primarily to a wartime emer
gency, and recommended that Congress pass specific legislation authorizing
such control. Congress acted on this recommendation last summer, but the
legislation then enacted extended the authority of the Board of Governors
only to November 1, 194-7. Since that date, no Federal agency has had
statutory authority to control consumer credit. The Senate passed a bill
on December 17, to extend the authority of the Board of Governors to
March 15, 19^9, but the House of Representatives has not yet taken action.
I believe that it is urgent in the national welfare that consumer credit
control legislation be enacted as soon as possible.
S-809
|
Total consumer credit outstanding at the end of June reached an alltime peak of $14,150,000,000. This is an increase of over $2,000,000,000
since the expiration of control legislation op November 1 of last year.
The increased use of consumer credit in a period of inflationary
pressures can only add to those pressures. As we all know, the curtail
ment of the production of consumer goods during the war period gave rise
to a tremendous deferred demand for such goods. And, despite the fact
that industrial production since the end of the war has reached the
highest level ever attained during peacetime, we have not yet been able
to produce enough goods to satisfy this deferred demand. There are still
many important shortages of goods. But with production near capacity
levels, purchasing power made available by consumer loans can be used
only to bid up prices of consumers’ goods. It cannot call additional
goods into existence. It is imperative, therefore, that efforts be made
to restrain the demand for scarce goods until supply approaches demand.
It has been urged that the volume of consumer credit, despite its
unprecedentedly high level, is lower in proportion to incomes than was
the case immediately before the war. This is true, but I do not consider
that it is relevant to the immediate problem. The relevant question now
is not how much consumer credit the country can beer, but how little it
can do with; since, at the present time, any addition to consumer credit
adds to the already strong pressure of inflationary forces. I submit,
therefore, that an expansion of consumer credit of the magnitude which
has occurred since November 1 is not in the national interest, and that
it justifies the reimposition at the present time of moderate controls on
the extension of installment credit, which has accounted for over 80 per
cent of the total increase in consumer credit since November 1,
At this point, Mr. Chairman, I would like to quote front testimony
which I gave to two Congressional committees last fall. I do this only
to indicate that I have from the beginning urged this type of legislation
I gave this testimony last fall before your Committee, and before the
Joint Committee on the Economic Report:
«Anti-inflationary measures which may be taken in the mone
tary field are of course but a segment of the .whole program, and
could not, by any means, solve the problem alone. But such steps
as can be taken when related to those in other fields will of
course be helpful in the overall solution.
«The President is greatly disturbed in regard to price in
flation, which threatens our whole economic structure, and he
is convinced that the Congress is equally concerned.
«The President has laid special emphasis on voluntary ac
tions on the part of businessmen, labor leaders, farmers, and
consumers to hold prices down. Intensified efforts will be
continued to obtain voluntary restraint. Certain powers are
necessary, however, to fortify the voluntary efforts*
- 3 -
"The President :.ae suggested that consideration be given
to the following mon >tary measures: one, that Consumer
Credit Controls shou .d be restored and some restraint should
be placed on inflationary bank credit; two, Legislation
should be provided to prevent excessive speculation on the
Commodity Exchanges; three, intensified activity in the sale
of savings bonds. ... ♦
"As to item one,, Restoration of Consumer Credit Controls
and Restraint on Inflationary Bank Credit, these matters have
been discussed by Fee leral Reserve officials. As to consumer
credit controls, I ai : in favor of their restoration,
"The most effecl Live types of credit control are those
which strike at the j individual forms of credit extension
which are contributing to inflationary pressures. The most
important single f o m » of such credit extension at the
present time is in c g nsumer credit.
"Total consumer
tember reached an all
end of 194-5, it amoun
December 194-6 ^ total
time had never reache
credit outstanding at the end of Sep
,-time peak cf $>11,4,00,000,000. At the
ited to only $>6,600,000,000. Prior to
consumer loans outstanding at any one
id the $ 1 0 ,0 0 0 ,00 0 ,0 0 0 level.
"This increased use of consumer credit in the present
period of i^fl^tionai ry pressures can only add to those pres
sures. As ^
kn< )w, the curtailment of the production
of consumer*
dui ring the war period gave rise to a tre
mendous def^rr^d dems ind for such goods. As we all know,
despite the
tha* b industrial production during 194-7 has
reached thg, highest ! level ever attained during peacetime,
we have np&
been able to produce enough goods to satisfy
this deferred dtewmd . There still exist many important
shortages- <
tf£g&ads. But with production near capacity levels,
purchasing
mad .e available by consumer loans can be used
only to 6 ^ ^ price is of eonsumers’ goods, not to purchase
more gop$s;% it is 5 imperative, therefore, that efforts be
made to3
the 5 decBSad for scarce goods until supply
approach^
i&rket : interest rates form a small part of the
total
<&£: eonsu) jner credit, and changes in such rates are
almost^
to limit its extension. It is necessary to
cover sp%&i£t©a.lly by regulation such matters as minimum down
paymeqjt^ apd; the raa iximm pfjriDds over which payments may be
aprea.4 on in-staillme m t purc&aseo of consumers’ goods in order
to r^strai& this tj rpe of inflationary credit."
Titl<| |I of H. R. r 7062 would implement the third point in the Presi
dent’s program. This p< Dint reads as follows: "I recommend that the Fed
eral Reserve Board be g: iven greater authority to regulate inflationary
-
u-
bank credit,11 The expansion of bank credit, except in the fields of con
sumer and real estate financing, has not, in my opinion, been a major
contributing force to present inflationary pressures. We must, however,
attack the problem of inflation on all fronts.
I have always believed that our chief reliance for the control of in
flationary bank credit lies in the good judgment of the individual bankers
in the 15,000 banks in the United States. The Board of Governors of the
Federal Reserve System, the Comptroller of the Currency, the Federal De
posit Insurance Corporation, and the Executive Committee of the National
Association of Supervisors of State Banks, representing the Federal and
State supervisory authorities, have urged bankers to confine the exten
sion of bank credit under existing conditions, as far as possible, to
loans that would help production, rather than increase consumer demands.
The banks, in general, have been most cooperative. I should like to take
this occasion to commend their public spirit, and particularly to commend
the American Bankers Association for its program to secure the maximum
voluntary curtailment in the extension of bank credit.
But, in the present situation, I think it is clear that prudence re
quires that additional instruments — to supplement the voluntary action
of the bankers — be placed in the hands of the Federal Reserve System.
At this point I would like to quote again from my testimony on in
flation control last November:
nI would like to point out that I have a positive feeling
that the major objective at this time is to maintain the fiscal
soundness of the Government and the continued confidence of the
public in Government obligations. I feel that the attack on
the problem can best be handled by the application of a sub
stantial budget surplus to the reduction of the public debt in
the manner which will extinguish an equivalent amount of bankheld government securities. Since the end of the war, the
Treasury has conducted its program of debt management in such
a way as to reduce inflationary pressures whenever possible by
paying off bank-held securities.”
I believe, that we have reason to be proud of the manner in which this
program has been conducted. The debt has been reduced by about
$26,500,000,000 since the postwar peak reached at the end of February 194-6.
Not only has the whole of this reduction occurred in bank-held securities,
but an additional $3,500,000,000 of securities have been transferred from
bank to nonbank ownership.
In the course of conducting this program, there have been periods when
our immediate objective has been to restrain price increases in Government
securities, and other periods in which the long-term Government security
market has been supported. The degree of stability which these operations
have imparted to the whole high-grade security market has been of major
benefit to the business community.
- 5 -
During the heavy tax-collection period of January, February, and
March of this year, we had a budget surplus of over $6,000,000,000. Part
of this was used to retire debt, and part was saved for the lean taxcollection months.
Our present heavy debt, with the resultant addition to the money sup
ply and to the stock of liquid assets, was created, for the most part, as
a result of our wartime deficits. These deficits were part of the price
of wanning the war and were incurred despite an eightfold increase in
our tax receipts as compared with the period immediately preceding the
war. The debt can be reduced — * and the process which attended its crea-”
tion reversed — only by continuing budget surpluses.
Unfortunately, as a result both of the tax reduction bill and of the
increased foreign aid and defense expenditures made necessary by the tense
international situation, we no longer have a budget surplus at our dis
posal as a weapon for combating inflationary pressures. In the fiscalmonetary area, we must, therefore, lean to an increasing extent upon
other measures for the restriction of bank credit.
The legislation before your Committee is born of this necessity. It
authorizes the Board of Governors of the Federal Reserve System to increase
member bank reserve requirements against demand deposits by 10 percent
age points and against time deposits by U percentage points. These per
missible increases would be in addition to the existing statutory maxima,
and could be applied flexibly to demand deposits in general, or to those
in banks in central reserve cities, in reserve cities, or in other places,
separately! or to time deposits, as required. The bill provides that
these changes in reserve requirements shall not continue in effect beyond
June 30, 1950.
Reserve requirements, at the present time, are at their statutory
maxima for time deposits in all banks, and for demand deposits in all
banks except those in central reserve cities. The present reserve re
quirement for demand deposits in banks in central reserve cities is 24percent, as compared with a statutory maximum of 26 percent*
The on3.y remaining authority of the Board of Governors to tighten
credit conditions through the medium of increasing reserve requirements
applies, therefore, to banks located in central reserve cities. But these
banks’have shown the least credit expansion in the recent past of any
class of bank. It is clear, consequently, that the remaining power of the
Board of Governors to increase reserve requirements is not well suited to
the nature of the problem which now confronts us. The proposed legisla
tion would remedy this by providing the Board of Governors with authority
to cope with the excessive expansion of bank credit — whenever this may
best be done by the required reserve method — in the class of bank where
such control seems most needed.
.
-oOo-
W illia m s
s c h o o ls
s p e c ia liz e d
a nd c o lle g e s
in
fro m
th e
r o b b e ry o f s a fe s
c o a s t to
in
S a v in g s B o n d s a l o n e .
in
T e x a s w h e re h e h a d s h o t a p o l i c e
p ilf e r in g
a s a fe .
in
g ra m m a r s c h o o l s , h i g h
c o a s t , w h ic h h a d y i e l d e d
He w a s w a n te d f o r B u r g l a r y i n
B o th W illia m s
m o re t h a n $
s e v e ra l s ta te s ,
o f f i c e r w ho s u r p r i s e d
a n d Bowman a r e a w a i t i n g
h im
in th e
50,000
n o ta b ly
act of
t r i a l u n d e r bonds o f
$ 2 5 ,0 0 0 e a c h .
In
W a s h in g t o n , D . C . ,
w e a th e r.
F r a n c is
b on ds fro m
w it n e s s e s
th e
to
D ecem ber 2 6 ,
w ith
fie ld
M. O ’ N e i l l ,
accused o f s te a lin g
home o f t h e i r o w n e r , d e n ie d h i s
te s tify
th e
0 *N e ill in
a n o t h e r b o n d t h i e f a n d f o r g e r w as c o n v i c t e d b y t h e
a t h is
d a y th e
tr ia l.
$ 1 , 2 5 0 w o r t h o f G o v e rn m e n t
g u i l t a n d p ro d u c e d s e v e n a l i b i
A l l o f t h e s e w it n e s s e s
s w o re t h a t o n
s t o l e n b o n d s w e re n e g o t i a t e d , t h e y p la y e d f o o t b a l l
A r lin g to n ,
V ir g in ia ,
and t h a t th e
d a y w as c l e a r a n d t h e
p la y in g
d ry .
I
A c h e c k w ith
snow f e l l
s lo p p y ,
in
w ith
t h e W e a th e r B u r e a u r e v e a l e d
W a s h in g t o n o n D e c e m b e r 2 5 t h ;
a t l e a s t tw o
in c h e s o f t h e
re tu rn e d a v e r d ic t o f g u i l t y
t h a t m o re t h a n f o u r in c h e s o f
t h a t D e c e m b e r 2 6 t h w as w e t a n d
s n o w r e m a i n in g o n t h e
g ro u n d .
The j u r y
a n d O ’ N e i l l d r e w a s e n t e n c e o f 1 6 m o n th s t o
-o O o
A y e a rs .
-
The t h e f t o f th e b la n k
tio n
in g
o f th e
E a r ly th e
v ic e
le a r n e d o f t h e
c a r,
D e p a r tm e n t r a d i o
w e re
m o r n in g ,
le s s
t h e f t and fo r g e r y ,
a lo n g w i t h
th e
$100.
a c t u a l lo s s
The r o u t i n e
t h a n - f ic t io n
is
i f
a n y th in g ,
C o lo r a d o ,
tifie d
t h e m s e lv e s a n d s t a r t e d
th e m s
w0 k a y , b o y s ,
W illia m s .* '
g iv e n
to
I
He t h e n v o l u n t a r i l y
h im b y W i l l i a m s ,
The a g e n ts
v ic tim s ,
checks.
in
C ash i n
u n u s e d m e r c h a n d is e w a s r e t u r n e d
le s s
th a n
c o u r t - m a r t i a l p r o c e e d in g s .
c a s e d e v e lo p e d
in to
1 94 -6 .
in
No s o o n e r h a d t h e
q u e s t io n in g
a s tra n g e r-
L o s A n g e le s s e t o u t
p r o p r i e t o r a t M a d e ra , C a l i f o r n i a ,
r o u tin e
kn ew y o u 'd
c o n ta in
M a r in e w as a r r e s t e d b y L a s V e g a s ,
a b o u t s e v e r a l U . S . S a v in g s B o n d s s t o l e n
d u r in g a s a fe b u r g la r y
c o o p e ra
h o u rs a f t e r th e S e c re t S e r
S e c r e t S e r v ic e a g e n ts fr o m
a s k R o y L . Bow m an, g a s s t a t i o n
knew ,
th e
t w e lv e
o f a bond fo rg e ry
s to ry .
a la r m s ,
o n e -m a n c r im e w a v e a m o u n te d t o
a w a itin g
in v e s tig a tio n
d e te c tiv e
th a n
n e w c a r a n d tw o o f t h e b l a n k
In c u r r e d b y th e
T he M a r in e p r i v a t e
and te le ty p e
th e
is s u e d .
p o s s e s s io n w as p r o r a t e d am ong h i s
and th e
to
o f th e
fo llo w in g
N evada, p o lic e ,
h is
c h e c k s w as q u i c k l y u n c o v e r e d a n d w i t h
L o s A n g e le s P o l i c e
a d e s c r ip tio n
5 -
w h a t he
A v o n d a le ,
T r e a s u r y m en i d e n
t h a n Bowman i n t e r r u p t e d
c a t c h u p w i t h me a s s o o n a s y o u n a b b e d B i l l y
c o n fe s s e d t o
th e
f o r g e r y o f $ 2 ,6 0 0
a man p r e v i o u s l y u n k n o w n t o
l e t Bwwman b e l i e v e
tjjta t h is
th e
c o n fe d e ra te
in
bonds
S e c r e t S e r v ic e .
in
w as i n
c u s to d y ,
<
and th e n s t a r t e d
to
g u id e
th e m .
cam ps, W illia m s
a s e a rc h w ith
A f t e r a te d io u s
and h is
th e
S e c r e t S e r v ic e
and bond fo r g e r ie s
c a n v a s s in g o f C a l i f o m i
w ife
and t o u r is t
w e re a r r e s t e d
in
F re s n o .
$ 2 , 6 0 0 w o r t h o f b o n d s f o r g e d b y Bow m an, W i l l i a m s
men w e re f a m i l i a r w i t h
m ade a s e n s a t i o n a l v o l u n t a r y
ily be ehangedf
b u t a name v w h i
s e v e n te e n - y e a r - o ld
W hen q u e s t i o n e d a b o u t t h e
b e lie v e d
n o th in g
c o n fe s s io n .
h is
He a d m i t t e d
w h ic h c o v e r e d m o s t o f t h e
e n tir e
c r i m i n a l c a r e e r and
a t r a i l o f b u r g la r ie s
U n ite d S t a t e s .
*•
in fo r m a tio n
s e r v in g
a b o u t h e r s o u rc e o f s u p p ly .
te rm s o f s e v e n a n d t h r e e
C o in c o u n t e r f e i t i n g
One s u c h c a s e
in
y e a rs
B o t h c o u n t e r f e i t e r a n d p a s s e r a r e now
r e s p e c tiv e ly
w as n e g l i g i b l e ,
S e a t tle ,
W a s h in g t o n ,
fn .
K“
w ith
F e d e ra l p r is o n .
s e iz u r e s
r e s u lt e d
o f N a th a n W. C a r t e r a n d J o s e l A . L a r s o n .
in
in
th e
t o ta lin g
o n ly |8 ,4 7 3 .
a r r e s t b y p o lic e
C a r t e r a d m it t e d
to
a g e n ts
o ffic e r s
t h a t he had
*
made a b o u t 8 0 c o u n t e r f e i t
l a t o r w ho i s
a n d p a s s in g
n ow b e i n g
s o u g h t.
A l l th re e
C a lifo r n ia ,
gang o f fo rg e r s
when a g e n ts a r r e s t e d
o ve r fiv e
S ta te s
o f C a lifo r n ia ,
T re a s u ry ,
th e S ta te
t e c h n i q u e w h ic h t h e y c a l l e d
in to
men h a v e b e e n i n d i c t e d
w as s m a s h e d b y t h e
S t o c k t o n b u s in e s s men w i t h
r ie r s
h a v in g b e e n a s s ^ t e d b y a p a r o le
h u n d re d fo r g e d
" w a lk in g
checks.
th e b e a t” ,
c a r d s w e re
s to le n
c h e c k s , m o s t o f w h ic h w e r e p a s s e d i n
d e f e n d a n t s p le a d e d g u i l t y
9 m o n th s t o
A re c o rd
b la n k
l a s t M a rc h .
d is b u r s in g
28 y e a rs
p r o v id e
f o r f a s t a c tio n
o ffic e ,
p a y f o r a la r g e
th e
to
f o llo w e d
in
m a il c a r
a p o o l ro o m
id e n t if ic a tio n s
s m a ll s to r e s
f o r c a s h in g
a n d s a lo o n s .
m em ber o f t h e
in
a case
N in e o f
te rm s r a n g in g
gang is
a w a itin g
in v o lv in g
M a r in e B a s e a t S a n D ie g o ,
th e
tr ia l.
th e ft o f
C a lifo r n ia ,
w ho w a s o n g u a r d d u t y n e a r t h e b a s e s * s
th e b la n k s .
He u s e d o n e c h e c k t o
b u y je w e lr y
L o s A n g e le s w h e re h e w r o t e a n o t h e r f o r $ 3 > 9 0 0 t o
sedan c o s tin g $ 3 *0 8 5 .
d e a l e r b e ca m e s u s p i c i o u s
U s in g a
e n v e lo p e s w h ic h t h e y
m et r e g u la r ly
c r e d ib le
The t e n t h
fir s t- c la a s ,
w e n t AWOL w i t h
a n d to c h a r t e r a p la n e
th e fo r g e r s
and s to le
w as e s t a b l i s h e d
G o v e rn m e n t c h e c k s f r o m
A p r iv a t e
c h e c k s d ra w n o n th e U n ite d
a n d h a ve a lr e a d y b e e n s e n te n c e d t o
each.
at
d r a f t c a r d s a n d u n e m p lo y m e n t i d e n t i f i
c a tio n
fiv e
"d o c to re d " to
c a rd s ,
S e c r e t S e r v ic e
a n d S a n J o a q u in C o u n t y .
The t h ie v e s
r e n d e z v o u s w h e re S o c i a l S e c u r i t y
fro m
f o r m a k in g
t e n N e g ro e s w ho h a d v i c t i m i z e d
c h e a p r o o m in g h o u s e s a n d h o t e l s
t h o u g h t m ig h t c o n t a in
th e
v io
th e h a l f - d o l l a r s .
A h ig h ly - o r g a n iz e d
S to c k to n ,
5 0 - c e n t p ie c e s ,
a nd c a lle d
th e
A f t e r a c c e p tin g th e
S e c r e t S e r v ic e .
check,
th e
automobile
V
*9
-
The p a s t y e a r b ro u g h t th e
d ie
-
"w h o w as t h e
b ills
th e
in
s in c e
m e th o d ic a l te c h n iq u e
S e r v ic e
tr a il
to
s u r m is e
fin a lly
le d
s o lu t i o n o f a 1 5 - y e a r - o ld S e c r e t S e r v ic e r id had
w h o /m a n a g e d t o p a s s m o re t h a n 5 , 0 0 0 f a k e $ 1
* lo n e w o l f *
New Y o r k C i t y
3 -
1932?* H azy d e s c r ip tio n s
h e h a d e m p lo y e d i n
o f th e
p a s s in g h is
c o u n te r fe ite r ,
p ro d u c t le d
t h a t h e w as a n e l d e r l y G e rm a n o f s m a l l m e a n s .
to
a $ 2 5 -a -m o n th a p a r tm e n t,
a t 204 W est 9 6 th S t r e e t ,
jam m ed w i t h
w h e re E m e r ic h J u e t t n e r ,
a lia s
th e S e c r e t
T he l o n g
in d e s c r ib a b le
E d w a rd M u l l e r ,
The 7 2 - y e a r - o ld
G e rm a n - A m e r ic a n h a s b e e n i n d i c t e d
F e d e r a l G ra n d J u r y
New Y o r k a s t h e
e lu s iv e
n ow a w a i t i n g
a p r in t in g
c lu tte r e d
tr ia l.
N e g a t iv e s a n d p l a t e s
p r e s s a n d p h o to g r a p h ic
liv in g
v o lv e d
T h is
in
th e
f o r th e
e q u ip m e n t , w e re
c o u n te r fe its ,
c a p tu re d
case o f th e
c o n s p ir a c y t o
S u lliv a n
te r m in a te d
y e a r w h e n h e s e n te n c e d t h e
p r is o n
te rm s
r a n g in g fr o m
th e
m o re t h a n h a l f a m i l l i o n
I n v e s t ig a t o r s
and is
to g e th e r w ith
J u e ttn e r* s
s e iz e d $ 3 6 5 ,0 0 0 i n
d o lla r s
in
l a r g e s t d o m e s t ic
s e v e n d e fe n d a n ts
in
tw o t o
each.
g a n g , w h ic h w as r o u n d e d u p b y S e c r e t S e r v i c e a g e n t s
fa c tu re d
in
by a
q u a rte rs .
On J u n e 2 F e d e r a l J u d g e P h i l i p
c o u n te r fe itin g
m aker o f th e $1 b i l l s ,
ju n k ,
w as
p la c e d u n d e r a r r e s t .
in
and
in
te n y e a rs
C h ic a g o , h a d m anu
fa k e $ 5 , $ 1 0 , $20 and $50 b i l l s .
c o u n te r fe its
a n d d e t e r m in e d
t h a t a lm o s t a n
e q u a l am ount had been b u rn e d .
A n o th e r( ^ c o \m te r fe it g j> w h o
b y a g e n ts
in
D e t r o it ,
s e t u p h is
M ic h i g a n ,
p la n t in
f o r m a n u fa c tu r in g a $ 1 0 F e d e r a l R e s e rv e n o t e .
T h e m a k e r , C a r y C . Y o u n g , w as b e t r a y e d b y t h e
s h ip .
a h o t e l ro o m w as a r r e s t e d
c h a r a c te r is t ic s
o f h is
w o rk m a n
He h a d b e e n a r r e s t e d a n d c o n v i c t e d m o n th s e a r l i e r f o r m a n u f a c t u r i n g
$5 b i l l s ,
a n d a S e c r e t S e r v ic e
a s Y o u n g *s p r o d u c t.
P r io r to
a n a ly s is
h is
L e w is w ho p a s s e d s e v e r a l o f t h e
o f th e
new $ 1 0 c o u n t e r f e i t m a rk e d i t
a r r e s t a g e n ts
c o u n te r fe its ,
to o k
in to
c u s to d y one R u th
b u t who r e f u s e d t o
fu r n is h
2
-
D o m e s t ic c o u n t e r f e i t i n g ,
to
a n a la r m in g
in
th e
e x te n t.
U n ite d S t a te s
c o u ld be p a s s e d .
th e
to ta l o f $
th e
-
r e p o r t c o n tin u e d ,
O f a t o t a l o f $ 7 4 7 ,4 3 4 i n
d u r in g
B ills
145, 214,
th e
a ls o
b ills
in c r e a s e d ,
a n d c o in s
but not
c a p tu re d
f i s c a l y e a r , $ 6 4 4 ,7 8 5 w as s e iz e d b e f o r e
a n d c o in s p a s s e d o n s t o r e k e e p e r s a n d o t h e r s
in c lu d in g
The S e c r e t S e r v ic e
th e $ 4 2 ,5 6 6 o f f o r e i g n
a rre s te d
2 ,2 7 8 p e rs o n s
d u r in g
re a c h e d
o r ig in .
th e
y e a r,
in c lu d in g
.. V
fo r
c o u n te r fe itin g ,
a n d 1 ,9 6 4 f o r
check and bond fo rg e r y .
o f 4 8 ,8 3 1 c a s e s f o r
in v e s tig a tio n
a n d c lo s e d 4 5 ,6 2 1 .
Am ong t h e
a rre s ts
a n d G e o r g ia , w ho a l s o
in v e s tig a tio n ,
in
be s to le n
r e g is t r a tio n
s e n te n c e d t o
A n o v e l a s p e c t o f th is
w e re n i n e
158
"
i
r e c e iv e d a t o t a l
men i n
F lo r id a
A f t e r an in t e n s iv e
m em be rs o f t h e
to g e th e r w ith
c e r tific a te s .
It
c a r ra c k e te e rs .
c u s to d y a l l
c o u n t e r f e it n o te s
a l l d e f e n d a n t s w e re
p r is o n .
p ro v e d to
a g e n t s p la c e d
n e a r ly $ 6 0 ,0 0 0 i n
J e r s e y a u to
on c h a rg e s o f c o u n t e r f e it in g
it
g a n g , a n d s e iz e d
a q u a n t i t y o f s t o l e n New
On J u n e 2 2 i n
te rm s r a n g in g fr o m
J a c k s o n v ille ,
3 to
7 y e a rs
c a s e w as t h e u s e o f a n a i r p l a n e
F lo r id a ,
in
F e d e ra l
b y S e c re t
t
S e r v ic e
a g e n ts ,
o f a p r iv a t e
s in c e
p la n e
in
one o f th e p r in c ip a ls
in
th e
c o n s p i r a c y w as t h e
w h ic h h e m ade f r e q u e n t f l i g h t s
d u r in g
th e
ow ner
c o u rs e o f th e
in v e s tig a tio n .
In
b ill
th e
fa c e
C a lifo r n ia
b e fo re
c o u n te r fe ite r s
m anaged t o
t h e y w e r e a r r e s t e d b y T r e a s u r y m en .
men i n v e s t i g a t o r s
and re v e rs e
n o t y e t in
a ls o
th re e
c a p tu re d f if t y - s e v e n
p la t e s
p r o d u c tio n .
f o r th e
tw e n tie s
The t r i o ,
used in
a g e n ts
d u r in g
th e
th e
p r in t in g
th e
o f th e s e
’’ hom em ade” $ 2 0
r e s id e n c e
a d d it io n a l $20 b i l l s ,
a nd a s e t o f p la t e s
a lr e a d y s e n te n c e d t o
n e g o tia te d 125 c o u n t e r f e it S ta te
p la t e s
In
p a ss one
o f C a lifo r n ia
o f one o f
to g e th e r w ith
f o r a new $ 5 b i l l
lo n g p r is o n
te rm s ,
u n e m p lo y m e n t c h e c k s *
had
T he
c h e c k s w e re r e c o v e r e d b y S e c r e t S e r v ic e
in v e s tig a tio n .
M
p
«Proposed
ho.
Q ju c g
Cc^
1
fr~ p
| | /
R e p o r tin g on t h e a c t i v i t i e s
f i s c a l y e a r ended June 3 0 ,
s in c e
B y f a r th e
in v o lv e d
Bonds.
th e fts
U n it e d S t a t e s S e c r e t S e r v ic e
T h is
t o t a l is
w as e s t a b l i s h e d
in
f o r th e
M a lo n e y t o d a y i n f o r m e d S e c r e
o f c o u n t e r f e i t c o in a n d c u r r e n c y d u r in g
m o re t h a n | 3 , 0 9 4 , 0 0 0 .
th e S e c r e t S e r v ic e
o f th e
1 9 4 8 , C h ie f Jam es J .
t a r y S n y d e r t h a t s e iz u r e s
t o t a le d
J "
th e
h ig h e s t i n
t h a t p e r io d
a s in g le
year
1865.
g r e a t e s t e n f o r c e m e n t p r o b le m o f t h e S e c r e t S e r v i c e ,
and fo r g e r ie s
h o w e v e r,
o f G o v e rn m e n t c h e c k s a n d U n i t e d S t a t e s S a v in g s
M o re t h a n 3 2 , 0 0 0 f o r g e d
c h e c k s a n d 1 1 , 0 0 0 f o r g e d b o n d s w e re r e c e i v e d
f
fo r
in v e s tig a tio n
d u r in g
j)
The la r g e s t p r o p o r t io n
m it\
w e re th o s e
is s u e d a n n u a lly b y th e
c o v e r in g
in c o m e t a x
r e f u n d s , a n d a l l o t h e r s w ho r e g u l a r l y r e c e i v e
c a r e fu lly
w a tc h t h e i r m a il b o x e s ,
c a s h th e s e c h e c k s t o
a
tr ib u ta b le
l
o
n
e
la r g e ly
to
e s p e c ia lly i n
la w
y
r
th e
o ffic e r s
p la t e s
fro m
e
now a w a i t i n g
c
o
r
r in g
s e iz u r e s
tr ia l
w as p r i n t e d ,
in
in
to ta le d
U n ite d S t a t e s ,
In
c u r r e n c y w e re a t
m oney a b ro a d ,
a g e n ts a n d F re n c h p o lic e
a la r g e
U n ite d S t a te s
and a rre s te d
o r g a n iz a tio n ,
tw e lv e
p la n t n e a r M a r s e ille s
c u rre n c y ,
c a p tu re d
c o u n te r fe ite r s
th e
w ho a r e
th e F re n c h c o u r ts .
$ 2 0 1 ,5 9 6 ,
la r g e ly
fa k e
o f fa k e
o f U n ite d S t a te s
la s t f a l l .
S e i z u r e s made b y S e c r e t S e r v ic e
o r ig in
d
c o u n te r fe itin g
re c o v e re d $ 2 ,1 4 5 ,2 0 0
to
id e n t if ic a t io n .
F r a n c e w h e r e A m e r ic a n S e c r e t S e r v ic e
w h ic h i t
G o v e rn m e n t c h e c k s ,
e n f o r c e m e n t a c c o m p lis h m e n ts o f h i s
sm a s h e d a h u g e c o u n t e r f e i t i n g
th e
He u r g e s t a x p a y e r s / *
a n d a s k s m e r c h a n t s , b a n k s a n d o t h e r s w ho
dem and p o s i t i v e
s u m m a r iz in g t h e
C h ie f M
checks,
re fu n d s , m illio n s
T r e a s u r y D e p a rtm e n t.
e x p e c tin g
In
o f fo rg e d
,
C h i e f I-LlI iji.ii i;1 f r i il i T O
o f w h ic h a r e
th e y e a r .
a g e n ts o f o t h e r c o u n t e r f e i t s
o f w h ic h o n l y $ 4 2 , 5 6 6 r e a c h e d c i r c u l a t i o n
th ro u g h
im m ig r a n t s w ho p u r c h a s e d
it
in
o f fo r e ig n
in
th e
goqj f a it h
abroad.
RELEA.SE NEWSPAPERS
Sunday, August 8» 1948
N o . S-810
Reporting on the activities of the United States Secret Service for the
fiscal year ended June 30, 194-8, Chief James J. Maloney today informed
Secretary Snyder that seizures of counterfeit coin and currency during that
period totaled more than $3,094,000# This total is the highest in a single
year since the Secret Service was established in 1865#
By far the greatest enforcement problem of the Secret Service, however,
involved thefts and forgeries of Government checks and United States Savings
Bonds. More than 32,000 forged checks and 11,000 forged bonds were
receiver for investigation during the year. The largest proportion of
forged checks, Chief Maloney stated, were those covering income tax refunds,
millions of which are issued annually by the Treasury Department. He urges
taxpayers expecting refunds, and all others who regularly receive
Government checks, to carefully watch their mail boxes, and asks merchants,
banks and others who cash these checks to demand positive identification.
In summarizing the law enforcement accomplishments of his organization,
Chief Maloney pointed out that the record seizures of fake currency were
attributable largely to the counterfeiting of United States money abroad,
especially in France where American Secret Service agents and French police
smashed a huge counterfeiting ring last. fall. In a large plant near
Marseilles the officers recovered $2,14-5,200 in fake United States
currency, captured the plates from which it was printed, and arrested
twelve counterfeiters who are now awaiting trial in the French courts.
Seizures made by Secret Service agents of other counterfeits of foreign
origin totaled $201,596, of which only $42,566 reached circulation in the
United States, largely through immigrants who purchased it in good faith
abroad«
Domestic counterfeiting, the report continued,..also increased, but not
to an alarming extent. Of a total of $747,434 in bills and coins captured
in the United States during the fiscal year, $644,785 was seized before it
could be passed. Bills and coins passed on storekeepers and others
reached the total of $145,214, including the $42,566 of foreign origin.
The Secret Service arrested 2,278 persons during the year, including
158 for counterfeiting, and 1,964 for check and bond forgery. It received
a total of 48,831 cases for investigation and closed 45,621.
Among the arrests on charges of counterfeiting were nine men in
Florida and Georgia, who also proved to be stolen car racketeers. After
an intensive investigateion, agents placed in custody all members of the
gang, and seized nearly $60,000 in counterfeit notes together with a
quantity of stolen New Jersey Auto registration certificates* On June 22
in Jacksonville, Florida, all defendants were sentenced to terms ranging
from 3 to 7 years in Federal prison. A novel aspect of this case was the
use of an airplane by Secret Service agents, since one of the principals
in the conspiracy was the owner of a private plane in which he made fre
quent flights during the course of the investigation.
In California three counterfeiters managed to pass one ’’homemade” $20
bill before they were arrested by Treasury men# In the residence of one of
the men investigators captured fifty-seven additional $20 bills, together
with face and reverse plates for the twenties and a set of plates for a new
$5 bill not yet in production. The trio, already sentenced to long prison
terms, had also negotiated 12$ counterfeit State of California unemployment
checks. The plates used in the printing of these checks were recovered by
Secret Service agents during the investigation.
The past year brought the solution of a 15-year-old Secret Service
riddle -— ’’who was the »lone wolf' who had managed to pass more than
5,000 fake $1 bills in New York City since 1932?” Hazy descriptions of the
counterfeiter, and the methodical technique he had employed in passing his
product led the Secret Service to surmise that he was an elderly German of
small means# The long trail finally led to a $25—a-month apartment, jammed
with indescribable junk, at 20/+ West 96th Street, where Emerich Juettner,
alias Edward Muller, was placed under arrest# The 72-year-old GermanAmerican has been indicted by a Federal Grand Jury in New York as the
elusive maker of the $1 bills, and is now awaiting trial# Negatives and
plates for the counterfeits, together with a printing press and photographic
equipment, were captured in Juettner»s cluttered living quarters.
On June 2 Federal Judge Philip Sullivan terminated the largest domestic
counterfeiting case of the year when he sentenced the seven defendants in
volved in the conspiracy to prison terms ranging from two to ten years each.
This gang, which was rounded up by Secret Service agents in Ghicago, had
manufactured more than half a million dollars in fake $5, $10, $20 and $50
bills. Investigators seized $365,000 in counterfeits and'determined that
almost an equal amount had been burned#
Another counterfeiter who set up his plant in a hotel .room was arrested
by agents in Detroit, Michigan, for manufacturing a $lt) Federal Reserve
note. The maker, Cary C. Young, was betraye-d by the-characteristics of
his workmanship# He had been arrested and convicted months earlier for
manufacturing $5 bills, and a Secret Service analysis of the new $10
counterfeit marked it as Young*s product. Prior to his arrest agents took
into custody one Ruth Lewis who passed several of the counterfeits, but who
refused, to furnish information about her source of supply# Both counter
feiter and passer are now serving terms of seven and three years respect
ively in Federal prison.
Coin counterfeiting was negligible, with seizures totaling only
$8,473# One such case in Seattle, Washington, resulted in the arrest by
police officers of Nathan W. Carter and Josel A# Larson. Carter admitted
~ 3 ~
to agents that he had made about BO counterfeit 50—cent pieces, having been
assisted by a parole violator who is now being sought* All three men
have been indicted for making and passing the half-dollars,
A highly— organized gang of forgers was smashed by the Secret Service at
Stockton, California, when agents arrested ten Negroes who had victimized
Stockton business men with over five hundred forged checks drawn on the
United States Treasury, the State of California, and San Joaquin County*
Using a technique which they called "walking the beat", the forgers followed •
mail carriers into cheap rooming houses and hotels and stole envelopes’which
they thought might contain checks* The thieves met regularly in a pool room
rendezvous where Social Security cards, draft cards and unemployment identi
fication cards were "doctored" to provide credible identifications for
cashing stolen checks, most of which were passed in small stores and saloons*
Nine of the defendants pleaded guilty and have already been sentenced to
terms ranging from 9 months to 28 years each* The tenth member of the gang
is awaiting trial,
j$
A record for fast action was established in a case involving the theft
of five blank Government checks from the Marine Base at San Diego, California,
last March, A private first-class, who was on guard duty near the bases»s
disbursing office, went AWOL with the blanks. He used one check to buy
jewelry and to charter a plane to los Angeles where he wrote another for *
$3,900 to pay for a large sedan costing $3,085» After accepting the check,
the automobile dealer became suspicious and called the Secret Service*
The theft of the blank checks was quickly uncovered and with the coopera
tion of the Los Angeles Police Department radio and teletype alarms, contain
ing a description of the car, were issued.
Early the following morning, less than twelve hours after the Secret
Service learned of the theft and forgery, the Marine was arrested by
Las Vegas, Nevada, police, along with the new car and two of the blank
checks. Cash in his possession was prorated among his victims, unused
merchandise was returned and the actual loss incurred by the one-man crime
wave amounted to less than $100. The Marine private is awaiting
court-martial proceedings.
The routine investigation of a bond forgery case developed into a
stranger-than-fiction detective story* Secret Service agents from
Los Angeles set out to ask Roy L* Bowman, gas station proprietor at Madera,
California, what he knew, if anything, about several U*.S* Savings Bonds
stolen in Avondale, Colorado, during a safe burglary in 1946* No sooner
had the Treasury men identified themselves and started routine questioning
than Bowman interrupted them: "Okay, boys, I knew you»d catch up with me
as soon as you nabbed Billy Williams," He then voluntarily confessed to
the forgery of $2,600 in bonds given to, him by Williams, a man previously
unknown to the Secret Service,
The agents let Bo?fman believe that his confederate in crime was in
custody, and then started a search with nothing but a name to guide them.
After a tedious canvassing of California hotels and tourist camps,
Williams and his seventeen-year-old wife were arrested in Fresno*
- 4 ~
When questioned about the $>2-,600 worth of bonds forged by Bowman,
Williams believed the Secret Service men were familiar with his entire
criminal career and made a sensational voluntary confession. He admitted
a trail of burglaries and bond forgeries which covered most of the
United States*
Williams specialized in the robbery of safes in grammar schools,
high schools and colleges from coast to coast, which had yielded more
than $50,000 in Savings Bonds alone. He was wanted for burglary in several
states, notably in Texas where he had shot a police officer who surprised
him in the act of pilfering a safe. Both Williams and Bowman are awaiting
trial under bonds of $2 5 ,0 0 0 each.
In Washington, D. C., another bond thief and forger was convicted by
the weather. Francis M. 0 rNeill, accused of stealing -$1,250 worth of
Government bonds from the home of their owner, denied his guilt and
produced seven alibi witnesses to testify at his trial. All of these
witnesses swore that on December 26, the day the stolen bonds were
negotiated, they played football with o*Neill in Arlington, Virginia, and
that the day was clear and the playing field dry.
A check with< the Weather Bureau revealed that more than four inches of
snow fell in Washington on December 25th5 that December 26th was wet and
sloppy, with at least two inches of the snow remaining on the ground. The
jury returned a verdict of guilty and O'Neill drew a sentence of 16 months
to 4 years.
>o0 o>
1
V fû T
T H E S E C R E T A R Y O F D EFEN SE
WASHINGTON
A u g u s t 4, 1 9 4 8
%,M y d e a r Mr*
Secretary:
vi0 n the 1 5 8 th A n n i v e r s a r y of the e s
t a b l i s h m e n t of the U n i t e d S t a t e s C o a s t Guard,
I s e n d c o n g r a t u l a t i o n s an d b e s t w i s h e s to the
p e r s o n n e l of tha t S e r v i c e f o r the v a l i a n t r e c o r d
w h i c h t h e y h a v e made, b o t h in p e a c e a n d in war.
' T h e N a t i o n a l M i l i t a r y E s t a b l i s h m e n t joins
m e in f e l i c i t a t i n g the C o a s t G u a r d on p a s s i n g
another significant milestone.
Sincerely,
*J a m e s P o r r e s t a l
rfT h e
Honorable
T h e S e c r e t a r y of the T r e a s u r y
W a s h i n g t o n , D. C. n
Immediate Release
Wednesday, August 4, 1948
Secretary Snyder today made public the follow
ing letter from Secretary of Defense Forrestal, in regard
to the 158th Anniversary of the United States Coast Gjrard:
TREASURY DEPARTMENT
Information Service
No. S-811
IMMEDIATE RELEASE,
Wednesday« August U* 194-8*
Secretary Snyder today made public the following letter from
Secretary of Defense Forrestal, in regard to the li>8th Anniversary
of the United States Coast Guard:
«August
Uf 194-8
«My dear Mr. Secretary:
«On the 158th Anniversary of the establishment of
the United States Coast Guard, I send congratulations
and best wishes to the personnel of that Service for the
valiant record which they have made, both in peace and
in war,
«The National Military Establishment joins me in
felicitating the Coast Guard on passing another signif
icant milestone.
«Sincerely,
«JAMES FORRESTAI^
«The Honorable
The Secretary of the Treasury,
Washington, D. G.«
2
7
'.Reports once reached the Alcohol Ta^iJnit that Nortl
Carollna still o n ^ a t o r s also were usVfg an airplane,
defense. According to the reports £ney tried camoufl rging'
their stills^ and then viewed thgf result from the air to
determine/its effectiveness.
The Alcohol Tax Unit enforcement division locates and
seizes a great many stills without the aid of aviation.
Coast Guard flyers are called in to cover terrain which
presents especial difficulties.
The 297 still seizures in combined operations during
the spring months yielded
1^1,162
gallons of mash and
1>372> gallons of distilled spirits. But for the seizures,
tax frauds totaling about gl^-0,000 would ha.ve been perpetrated
through bootleg sale o f -the stills’ products.
were made.in—
■■.di
•
The-seJ
ÿ7
5
*%__-
The Bureau-' of Internal Revenue announced today that
combined air and ground operations against Illicit distillers,
conducted by the Alcohol Tax Unit with the aid of Coast Guard
aviation, netted a spring "harvest" of
297
stills in
10 States. Eighty-one persons were arrested.
A single Coast Guard plane, which put in a total of
Ip d a y s 1 flying time over a period of approximately three
months, was used to spot the stills. The plane carried
an expert Alcohol Tax Unit observer
investigators
. /
i on the ground.
to ATU/8BÎ
who
reported the finds by rad;
Technique of the combined operations has been carefully
worked out over a period of several years. The flying observer
in a typical case gives the location of a still and reportsthe number of persons seen about it.
The information is
investigators
received on the ground by/ agn ittes in radio .cars, who quickly
surround the location. If.it is necessary for the Investigators
to travel on foot, they equip themselves with "handy talkie"
radio sets, and maintain communication with the plane through the si
If the operators of the still try to escape,
the plane
follows thenjmi, the observer guxes the pursuing officers.
.n one
V
a flying observer saw a "moonshiner1
take refuge in a country church, where investigators captured him.
TREASURY DEPARTMENT
Information Service
WASHINGTON, D .C .
RELEASE AFTEfflQON NEWSPAPERS
Friday« August 6» 1948
N o * ,3-812
The Bureau of Internal Revenue announced today that combined air and
ground operations against illicit distillers, conducted by the Alcohol Tax
Unit with the aid of Coast Guard aviation, netted a spring "harvest11 of 297
stills in 10 States. Eighty-one persons were arrested.
A single Coast Guard plane, which put in a total of 15 days’ flying
time over a period of approximately three months, was used to spot the stills.
The plane carried an expert Alcohol Tax Unit observer who reported the finds
by radio to ATU investigators on the ground.
Technique of the combined operations has been carefully worked out over
a period of several years. The flying observer in a typical case gives the
location of a still and reports the number of parsons seen about it. The
information is received on the ground by investigators in radio cars, who
quickly surround the location. If it is necessary for the investigators
to travel on foot, they equip themselves with "handy talkie" radio sets,
and maintain communication with the plane through these*
If the operators of the still try to escape, the plane follows them
and the observer guides the pursuing officers. In one instance, a flying
observer saw a "moonshiner" take refuge in a country church, where investi
gators captured him.
The Alcohol Tax Unit enforcement division locates aid seizes a great
many stills without the aid of aviation. Coast Guard flyers are called in
to cover terrain which presents especial difficulties.
The 297 still seizures in combined operations during the spring months
yielded 1 4 1 ,1 6 2 gallons of mash and 1,378 gallons of distilled spirits. But
for the seizures, tax frauds totaling about 4-14-0 ,0 0 0 would have been perpe
trated through bootleg sale of the stills’ products.
o 0 o -
Sales in Special uffering
of Series * and G aonds (July 1-15)
tutional investors of certain classes during the period from July 1 through
July 15, 191*8, in amounts in excess of existing limitations,
M M M »
-were
divided among the several Federal Reserve Districts and the Treasury as follows:
Federal Reserve
District x
Boston ........
New York . . . .
Philadelphia . .
Cleveland. . . .
Richmond . . . .
Atlanta . . . .
Chicago . . . .
St. Louis . . .
Minneapolis . .
Kansas City . .
Dallas . . . . .
San Francisco .
Treasury . . . .
Series F
.
.
.
.
.
.
.
.
.
.
.
.
. . . $ l*,8 ll*,9 7 6 .5 0
...
38,1*85,161.50
...
7,130,510.50
. . .
8,913,355.50
. . .
8,833,935.00
. . .
1*,1*88,1*33.00
. . .
77,221,127.50
. . .
11,132,578.50
. . .
28,231,222.00
. . .
21*,763,082.50
. . .
2,387,887.50
. . .
9,305,685.00
TOTAL
$22^,707,955.00
Series G
1 1 2 5 ,U2 7 , 700
256,091,600
1*8,1*37,900
66,175,500
1*7,178,300
3 3 ,551*,000
1 5 2 ,6 2 0 ,20 0
29,975,1*00
31*,377,300
1*1*,81*8,700
15,086,800
1*5,51*6,000
1,000,000
$ 900 ,3 1 9 ,1*00
Total
1 3 0 ,21*2 ,6 7 6 .5 0
291*,5 7 6 ,7 6 1 .5 0
55,568,1*10.50
75,088,855.50
56,012,235.00
38,01*2,1*33.00
229,81*1,327.50
la,107,978.50
62,608,522.00
69,611,782.50
17,1*7U,687.50
5U,851,685.00
1 ,000 ,000.00
$1,126,027,35^.00
$
Purchases were divided among the several investor classes as follows:
Classes of Investors
Series F
Insurance companies . . . . .
$ 22,325,1*85*50
Savings b a n k s ..............
1*,61*9,679.00
Savings & loan associations &
building & loan associations,
& cooperative banks . . . .
3,677,91*8.00
Pension & retirement funds .
Ul,5l5,313*50
Fraternal benefit associations
329,337.00
Endowment funds . . . . . . .
2,015,778.50
Credit unions
............
101,010.00
Commercial & industrial banks
151,093,1*03.50
TOTAL
$225,707,955.00
Series G
$202,11*7,100
11*8 ,1 2 5 ,0 0 0
26,173,300
188,311,600
13,511,800
1*6,820,900
27,800
275,201,900
$900,319,1*00
Total
$
221*,1*72,585.50
152,77U,679.00
29,851,21*8.00
229,826,913.50
13,81*1,137.00
1*8,836,678.50
128,810.00
1*26,295,303.50
$1,126,027,355.00
2
by citizens,
and advertising and promotional
media,
,
p-'.
"Entire communities were mobilized to sell Savings Bonds.
Newspapers, magazines and radio contributed about
12-J- million dollars in advertising. The newest medium,
television, also responded helpfully. Labor organizations,
industrialists, bankers, retailers and the motion picture
industry did their part in this great undertaking. The aid
of the various national, fraternal, women 1s, veteran and
service club organizations was similarly valuable.
uVie can add to and consolidate the benefits secured
from the drive —
benefits to ourselves and to our country —
by continuing to invest every available dollar in Savings
Bonds.n
# #
VM/l'i
f/L
IMMEDIATE RELEASE
Thursday, August 5,
U-'i
U ^ ~ fu
19^6
Sales of United States Savings Bonds of Series E, F and Ct
in the Security Loan Drive totaled $2,796,133,000,
Secretary
Snydeif announced' today.
certain institutional investors amounted.to §1 ,126,027,000.
Details are given on the attached'page.
s—
The drive’s sales by issues, exclusive of the special
offering sales, were as follows: Series E, :;l,136,023,000;
Series F and Series G- combined, §53^> 133>000.
In announcing the final figures on the drive’s results,
Secretary Snyder said:
ffThe country has good reason to be well satisfied
with the accomplishments of the Security Loan. This campaign
was effective in stimulating our continuing efforts t o L
increase participation in the payroll savings and bond-a-month
plans for buying United States Savings Bonds. By investing
§2,796,1^3,000 in Savings Bonds during the Security Loan,
Americans helped protect their own future and helped maintain
the nation’s economic stability.
”The drive was a fine example of voluntary service
wmmmm
Sales 6f Series F and G- bonds in a special offering to
IMMEDIATE RELEASE
Thursday, August 5» 1948
No, S-813
Sales of United States Savings Bonds of Series E, F and G in the
Security Loan Drive totaled $2,798,183,000, Secretary Snyder announced
today.
Sales of Series F and G bonds in a special offering to certain
institutional investors amounted to $1,126,027,000« Details are given
on the attached page©
The drive’s sales by issues, exclusive of the special offering
sales, were as follows: Series E, $1,136,023,000; Series F and
Series G combined, $536,133,000#
In announcing the final figures on the drivers results,
Secretary Snyder said:
»The country has good reason to be well satisfied with the
accomplishments of the Security Loan. This campaign was effective in
stimulating our continuing efforts to increase participation in the
payroll savings and bond-a~month plans for buying United States Savings
Bonds. By investing $2,798,183,000 in Savings Bonds during the
Security Loan, Americans helped protect their own future and helped
maintain the nation’s economic stability.
»The drive was a fine example of voluntary service by citizens,
organizations and advertising and promotional media.
»Entire communities were mobilized to sell Savings Bonds.
Newspapers, magazines and radio contributed about 122 million dollars
in advertising. The newest medium, television, also responded help
fully. Labor organizations, industrialists, bankers, retailers and
the motion picture industry did their part in this great undertaking.
The aid of the various national, fraternal, women’s, veteran and
service club organizations was similarly valuable*
»We can add to and consolidate the benefits secured from the
drive — benefits to ourselves and to our country — by continuing to
invest every available dollar in Savings Bonds*»
NOTE:
Figures on this page are rounded to the nearest $1,000.
-oOo-
i
Sales in Special Offering
of Series F and G Bonds (July 1-15)
Sales of Series F and Series G Savings Bonds to institutional investors
of certain classes during the period from July 1 through July 15, 194$* in
amounts in excess of existing limitations, were divided among the several
federal Reserve Districts and the Treasury as follows:
Total
Series G
Series F
Federal Reserve
District •
Boston • • • • • • • $ 4,814,976.50
38 ,4.8 5 ,1 6 1 .5 0
New York « . • • • #
7,130,510.50
•
•
Philadelphia • •
8
,9 1 3 ,3 5 5 .5 0
Cleveland« • • • • •
8,833,935.00
•
Richmond • • •
• •
4 ,488,433.00
Atlanta • • • •
77,221,127.50
Chicago • . * •
11,132,578.50
St« Louis • » # • •
28,231,222.00
Minneapolis • ,• • 6
24,763,082.50
Kansas City • • • •
2,387,887.50
Dallas • • • • ♦ • •
9 ,30 5 ,6 8 5 .0 0
San Francisco. • • «
Treasury • • • • • •
TOTAL $225,707,955.00
$125,427,700
256,091,600
48 ,4 3 7 ,9 0 0
66,175,500
47,178,300
33,554,000
152,620,200
29 ,9 7 5 ,4 0 0
34,377,300
44,848,700
15,086,800
45,546,000
1,000,000
4900 ,3 1 9 ,4 0 0
ft 130,242,676.50
294 , 5 76 ,7 6 1 .5 0
55 , 568 ,4 1 0 .5 0
7 5 ,088 ,8 5 5 .5 0
56,012,235. OQ
38,042,433.00
229,841,327.50
41,107,978.50
62,608, 5 2 2 .0 0
69,611,782.50
17,474,687.50
54,851,685.00
1,000,000.00
$1,126,027,355.00
Purchases were divided among the several investor classes as follows:
Classes of Investors
Series F
Insurance companies • « • • . > 1 2 2 ,32 5 ,4 3 5 .5 0
4,649,679.00
Savings banks • • • • • • • • •
Savings & loan associations &
building & loan associations,
3,677,948.00
& cooperative banks * • • •
41,515,313.50
Pension & retirement funds
<
329,337.00
Fraternal benefit associations
2,015,778.50
Endowment funds • ..........
101,010.00
Credit unions
• • • . • . •
151,093,403.50
Commercial & industrial banks
TOTAL
— o 0 o -
\
Series G
Total
$202,147,100 4
148,125,000
224,472,585.50
152,774,679.00
26,173,300
188,311,600
13,511,800
46,820,900
27,800
275,201,900
$900,319,400
29,851,248.00
229,826,913.50
13,841,137.00
48,836,678.50
128,810.00
426 ,295 ,3 0 3 .5 0
T R E A S U R Y
D E P A R T M E N T
Information Service
Wa s h i n g t o n , d .c .
Thursday/ August 5, 19^8
T H E T R E
TC - 13
A S U R Y
OFFICE OF THE SECRETARY
Wednesday. September 22.
Secretary
Snyder will deliver a speech before the
annual meeting of the National Associa
tion of Supervisors of State Banks,
Louisville, Kentucky.
OFFICE OF THE UNDER SECRETARY
Thursday. September 23. Under Secretary
Edward H. Foley, Jr., will address the
American Institute of Accountants, Chi
cago, Illinois.
OFFICE OF THE GENERAL COUNSEL
CAL. E N D A R
1 C. B. Upham is serving as a member of
1 the faculty of the Pacific Banking
j School being held at the University of
Washington in Seattle.
! Wednesday. September 22. Preston Delano,
Comptroller of the Currency, will deliver
j a speech before the annual meeting of the
j National Association of Supervisors of
j State Banks, Louisville, Kentucky.
!
BUREAU OF INTERNAL REVENUE
I
.
I Friday. August 20. Eldon P. King, Spej cial Deputy Commissioner, will speak, at
j the Palace of Peace, The Hague, Netherj lands, at a meeting of the International
jBar Association, August 20 to 22. SubI ject: ’’Fiscal Cooperation in Tax.
Treaties.”
Monday. September 6. Thomas J. Lynch,
General Counsel, will speak before the
Real Property, Probate and Trust Law Sec
Thursday. August 19. 12:30 P.M. George J .
tion of the American Bar Association, at
Schoeneman, Commissioner of Internal Revthe Association’s annual convention in
j enue, will be guest speaker at a luncheon
Seattle, Washington.
meeting of the National Society of Public
¡Accountants, Hotel Copley Plaza, Boston,
Tuesday. September 28. Mr. Lynch will
speak befdre a banquet meeting of the Tax Massachusetts.
Executives Institute, Mount Washington
Hotel, Bretton Woods, New Hampshire.
UNITED STATES COAST GUARD
j
I
COMPTROLLER OF THE CURRENCY
Monday through Saturday. August 2 to 7.
Deputy Comptroller of the Currency
jThursday. August 5. 12:30 - 1 P.M. Rear
1Admiral Raymond T, McElligott, Chief , Ofjfice of Personnel, will speak on the
|Mutual Broadcasting System network broadIcast of the Navy Band.
UNITED STATES COAST GUARD
(Continued)
Thursday. August 5. 5 - 5:15 P-.M. Round
table discussion by five Coast Guard of
ficers, Columbia Broadcasting System,
Station WTOP. Participating in the dis
cussion are Captain Stephen H. Evans,
Chief, Shore Units Division; Captain
Edward C. Cleave, Chief, Merchant Vessel
Inspection Division; Commander Guy L.
Ottinger, Assistant Chief, Electronics
Engineering Division; Lt. Commander
Alexander W. Wuerker, Deputy Executive
Assistant, Search and Rescue Agency; and
Lt. Commander William R. Riedel, Assist
ant Chief, Shore Units Division.
Thursda:^. August 12» Admiral Joseph F.
Farley, Commandant, will attend the an
nual meeting of trustees of the Woods
Hole Oceanographic Institution, Woods
Hole, Massachusetts. .
E. J. Kious has been appointed Assistant
Chief, Division of General Accounts, Of
fice of the Treasurer. He assumes the
position left vacant by the retirement of
L. V. Moore,
Stewart Berkshire. Assistant Commissioner
of Internal Revenue, has transferred to
San Francisco, California, where he will
head the Pacific Division of the Bureau1s
Technical Staff*
Paul A. Hankins. Deputy Commissioner of
Internal Revenue, has been assigned to
the Atlanta, Georgia, office, where he
will be in charge of Accounts and Col
lections for District No. 5*
Mrs, Frances B. Hansbrough. Bureau of
Accounts, has retired after 25 years’
Government service.
Monday. August 30« Rear Jtdmiral Ellis
Reed-Hill, Engine er-in-CMef, will attendi
the Distinguished Guest banquet, and rep
FIRE AND\ SAFETY COUNCIL
resent the Coast Guard at the 49th Na
tional Encampment of the Veterans of For Paul McDonald, Chairman, announces that
eign Wars, St. Louis, Missouri,
the Treasury Fire and Safety Council will
hold a meeting in the* Conference Room
Thursday through Sunday, September 2 to
4426, Monday. August 9. 10:30 A. M.
5. Rear Admiral Raymond T, McElligott,
Chief, Office of Personnel, will attend
the national convention of AMVETS, at
Chicago, Illinois.
STATEMENTS AND RELEASES
(Available in Room 4408, Treasury)
APPOINTMENTS. TRANSFERS AND RETIREMENTS
J. T. Baczenas has been appointed Chief
of the Currency Redemption Division, Of
fice of the Treasurer. He replaces
Benton C. Gardner who retired July 31*
Summary of Secret Service law enforcement
activities during past fiscal year, for
Sunday papers, August 8,
Release on results of the Security Loan
Drive, conducted by the Savings Bond
Division.
NOTE: Items for the Treasury Calendar may be phoned to the Information Service
over extensions 2108, 2041; Internal Revenue extensions 650. 651: Coast Guard.
Treasury extension 2993.
STATUTORY DEBT LIMITATION
as of
nCi S S S T
July 3 1 * l ^ a
to«,
Section 21 of the Second Liberty Bond Act, as amended, provides that the face amount of obligations issued
amour
under authority of that Act, and the face amount of obligations guaranteed as to principal and interest by the
oblig
such
not e
poses
a dis
shall
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.M
The following table shows the face amount of obligations outstanding and the face amount which can still be
issued under this limitation:
$275, OOO, 000,000
Total face amount that may be outstanding at any one time
Outstanding J u l y 3 1 ,
Total
Outst
Obi
]
1948
Obligations issued, under Second liberty Bend Act, as amended
Interest-bearing:
1 Treasury bills................. .
1 I
I |Certificates
'
.
of indebtedness*......
Treasury notes........... .
face
# 13,266,208,000
22,293,765,000
15,760,139,300
t 51,320,112,300
112 ,462 ,025,000
54,606,591,036
329.965.000
540,345,550
959.150.000
168,898,076,586
Bonds —
Treasury.................... .
Savings (current redemp. value)...
Depositary........ *......
Armed Forces Leave.
Investment series........... ..
Special Rinds Certificates of indebtedness.....
Treasury notes..... *.......... .
16 ,451 ,300 ,0 00
14,335,494,000
Total interest-bearing.........
Matured, interest-ceased...... .
30$786,794,000
251,004,982,886
259,021,460
Bearing no interest:
War savings stamps.................
57,174,732
l
Excess profits tax refund bonds....
8 ,460,760
I
^Special notes of the United States:
Internet *1 Bank for Reeomst.
and Development series.........
65 ,785,000
Intemat'l Monetary R m d series..
1 ,161,000,000
, ,
1 292 420,492
252,556,424,838
Total......... .......
Guaranteed obligations (not held by Treasury):
Interest-bearing :
Debentures: 7.H.A.
Demand obligations : C* Ct C. ........
■3
13,976,336
36,533,784
Matured, interest-ceased........ ...........
50,510,120
4,678,375
55,188,495
Grand total outstanding..... .................................
Balance face amount of obligations issuable under above authority.................... ..
Peconciïement with Statement of"the'putïic^î^t'-'July'
(Daily Statement of the United States Treasury, (August
262.611.613,333
22.688.686.661
1948
2, 1948)
Grar
Balai
Outstanding Total gross public debt«...*...«..... ..................... ..........................
Guaranteed obligations not owned by the Treasury........... ».........................
Total gross public debt and guaranteed obligations.».
^
Guar?
Ini
]
]
Ma^
.....................
Deduct - other outstanding public debt obligations not subject to debt limitation.....
253,373,752,027
66.188,495
253,428,940,522
817.627,189
252,611,613,333
Out si
Toi
Guî
To1
Dedu(
'STATUTORY DEBT LIMITATION
AS OF JULY 31. 1948
August 5, 1948
Section 21 of the Second Libert/ 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 guaranteéd 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 pur
poses 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*!l
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, 1948
Obligations issued under Second Liberty Bond Act, as amended
Interest-bearing :
Treasury bills «
• $ 13,266,208,000
Certificate of indebtness*
22,293*765,000
Treasury notes«•••••.••..«
15>760»139$300 $ 51,320,112,300
Bonds Treasury«.••••«.••••••«. 112,462,025,000
Savings (current redenp. "value) 54,606,591,036
Depositary.*...........«
329,965,000
Armed Forces Leave.... .
540,345,550
Investment s e r i e s ;_____959«150«000
$275 ,000 ,000,000
168,898,076,586
.Special Funds -
Certificates of indebtedness 16,451,300,000
Treasury notes
.......
14,335,494,000
Total interest-bearing*.. 6 * • • «
Matured, interest-ceased
30>786,794,000
31,004,982,886
259,021,460
Bearing no interest;
: War savings.stamps•*••«••••
57,174,732
Excess profits tax refund?bonds
8,460,760
Special notes of the United States;
Internat*! Bank for Reconst »
and Development series*.
65,785,000
Internat*1 Monetary Rind series 1,161,000,000
Total............ .*......................
1.292,420,492
252,556,424,838
|Guaranteed obligations (not held by Treasury) :
Inters st-bear ing:
Debentures; F»H*A« *.....
13,976,336
Demand obligations: C.C.C. ».
36.533,784
Matured, interest-ceased......
50 510,120
4.6 7 8 ,375
,
55,188.495
252.611,613.333
••« ••
Grand total outstanding,..
22.388.386,667
ibove
authority,
IBalance face amount of obligations issuable under
Reconcilement with Statement of the Public Debt — July 31, 1948
(Daily Statement of the United States Treasury, August 2, 1948)
Outstanding Total gross public debt
•
253,373,752,027
Guaranteed obligations not owned by the T r e a s u r y « .
.
.
55.188,495
Total gross public debt and guaranteed obligations.... .......
253,428,940,522
Deduct - other outstanding public debt obligations not
subject to debt limitation............................ .
......817.327,189
252,611.613,333S-8I4
\
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 llf> of the Reve
nue Act of 191*1, 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 No. 1*18, as amended, and this notice, prescribe
the terms of the Treasury bills and govern the conditions of their issue.
of the circular may be obtained from any Federal Reserve Bank or Branch.
Copies
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 ary such respect shall
be final.
Subject to these reservations, non-competitive tenders for $200,000 or
less without stated price from ary one bidder will be accepted in full at the
average price (in three decimals) of accepted competitive bids.
Settlement for
accepted tenders in accordance with the bids must be made or completed at the
Federal Reserve Bank on
August 12, 19U8
3 in cash or other immediately avail-
able funds or in a like face amount of Treasury bills maturing
Cash and exchange tenders will receive equal treatment.
August 12, 19U8
*
Cash adjustments will be
made for differences between the par value of maturing bills accepted in exchange
and the issue price of the new bills.
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 the Internal Revenue Code, or laws amendatory or supplemen
tary thereto.
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
is®SB EPW sm e!??“
RELEASE, MORNING NEWSPAPERS,
Friday, August 6 , 19^8.______ _
'^Cp. ^
The Secretary of the Treasury, by this public notice, invites tenders for
$ 900,000,000
i or thereabouts, of
92 -day Treasury bills, for cash and
in exchange for Treasury bills maturing
August 12, 19U8
, to be issued on
|
“*
a discount basis under competitive and non-competitive bidding as hereinafter
provided.
The bills of this series will be dated
will mature
November 12, 19lt-8
August 12, I9I4.8
, and
, when the face amount will be payable without
(6 )
interest*
They will 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 will be received at Federal Reserve Banks and Branches up to the
daylight saving
closing hour, two o*clock p.m., Eastern/gtandaxdxtime, Monday, August 9 , 19 I4.8
Tenders will not be received at the Treasury Department, Washington.
Each
tender must be for an even multiple of $ 1 ,000 , and in the case of competitive
tenders the price offered must be expressed on the basis of 1 0 0 , 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.
B
*. % Si 1 , f JjHISPS I || / A /' "
"
’ y 1.
v V ** I .
|
Tenders will be received without deposit from incorporated banks and trust
\
companies and from responsible and recognizee^ dealers in investment securities.
Tenders from others must be accompanied by payment of 2 percent of the face
TREASURY DEPARTMENT
Information Service
WASHINGTON, D .C .
RELEASE B O W I N G NEWSPAPERS,
Friday, August 6 , 194,8
No, S-815
The Secretary of the Treasury, by this public notice, invites tenders
for 4900,000,000, or thereabouts, of 92-day Treasury bills,, for cash and.
in exchange for Treasury bills maturing August 12, 194*8, to be issued on a
discount basis under competitive and non-competitive bidding as hereinafter
provided. The bills of this series will be'dated August 12, 1948, and will
mature November 12, 1948, when the face amount will be payable without
interest. They will be issued in bearer form only, and in denominations of
41 ,000 , 45 , 000 , 410 ,000 , 4100 ,000 , 4500 ,000 , and '4 !, 0 0 0 ,0 0 0 (maturity value
Tenders will be received at Federal Preserve Banks and Branches up to
the closing hour, two o ’clock p.m., Eastern daylight saving time, Monday,
August; 9, 1948, Tenders will not be received at the Treasury Department, '
Washington«. Each tender must be for an even multiple of 41,000, and in
the case of competitive tenders the price offered must be expressed on the
basis of ICO, with not more than three decimals, e. g«, 99''925« Fractions
Tnfl-u- r>nt. he used* It is urged that tenders be made on the
*
rms and
1
T
be supplied
Reserve
Banks or Branches on application therefor.
.
11
¿ - t
T T
io o
,„ • 5 4 - 0
Tenders will be received without deposit from incorporc i u o d.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
non-competitive tenders for 420 0 ,0 0 0 or less without stated price from any
one bidder will be accept.;d in full at the average price (in three decimals)
of accepted competitive bids. Settlement for accepted tenders in accordance
with the bids must be made or completed at the Federal fteserve Bank on
August 12, 1948, in cash or other immediately available funds or in a like
face amount of Treasury bills maturing August 12, 1948 . Cash and exchange
tenders will receive equal treatment. Cash adjustments will be made for
differences between the par value of maturing bills accepted in exchange
and the issue price of the new bills*
I
- 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 the ..Internal .Revenue Code,
or laws amendatory or supplementary thereto* The bills shall be subject to
estate, inheritance, gift or other excise taxes, whether Federal or State,
but shall be exempt from all taxation now or hereafter imposed on the prin
cipal or interest thereof by any State, or any of the possessions of the
United States, or by any.local faxing, authority*. -For purposes of taxation
the amount of diseount at: wtiibh '
T reasury‘bi;
llp- are originally, sold by the; '
United States shall be', considered to be interest.; :Under Sections 4-2 and
117 (a)(1) of the InternaliRëvènùé.Code,, as .amended by Section 115 of the.'
Revenue. Act of 1941* thé 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 consid- .
eration 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 Wo* 413, as.amended, and this notice,
prescribe the terms of tie* Treasury bills and govern the conditions of their
issue* Copies of the. circular may be obtained from any fédéral Reserve Bank
or Branch.
- o 0 o —
TREA.SURY DEPAR5HEUT
IITFOBiATIOH SERVICE
WASHIHGTQir D. C.
IMMEDIATE HELEA.SE
Ho. S-
0 /&
Secretary of the Treasury Snyder announced today that as
a further anti-inflationary move he is raising the rate on short
term Government securities.
Treasury certificates of indebtedness and notes maturing on
October 1, 19*18 will be refunded into a 1-1 /*$ one-year certificate
of indebtedness; Treasury notes maturing on September 15, 19^8 will
be refunded into l-3/S$ Treasury notes iaturing April 1, 1950*
The 2-l/2$ partially tax-exempt Treasury bonds maturing in
the amount of $*+51 million on September 15, 19^8 will be paid off
in cash.
The rate of interest on2Treasury savings notes will also be
adjusted.
Details will be announced later.
Treasury savings notes
with the new rate will be available starting on September 1, 19^S.
The Secretary said further that no change would be made in the
Governments policy with regard to the long-term bonds.
TREASURY DEPARTMENT
Information Service
W A S H I N G T O N , D.C.
No. S-816
B/MEDIATE .RELEASE
Monday9 August 9» 1948
Secretary of the Treasury Snyder announced today that as a
further anti-inflationary move he is raising the rate on short-term
Government securities.
Treasury certificates of indebtedness and notes maturing on
October 1/ 1948 will be refunded into a 1-1/1$ one-year certificate
of indebtedness; Treasury notes maturing on September 15* 1948 will
be refunded into 1-3/8$ Treasury notes maturing April 1, 1950»
The 2—1/2$ partially tax-exempt Treasury bonds maturing in the
amount of $>451 million on September 15*- 1948 will be paid off in
cash.
The rate of interest on Treasury savings notes will also be
adjusted.
Details will be*announced later»
Treasury savings notes
with the new rate will be available starting on September -1, 1948*
The Secretary said further that no change would be made in the
Governments policy with regard to the long-term bonds»
oOo-
\
@FedFRASER