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TREASURY DEPARTMENT LIBRARY
ppoM
5030
JUN t 4197Z
TREASU RY D E P A R ™ £NT
A-
r b l m s b , m m r m ksispapkrs ,
Tnee&ay, August 10, 1948,
5
Tb* Seeretary of tbe Treasury announced last evening tfaat tbe tenders f©r
1900»000,000, ©r thereabouts, of 92-day Treasury billa te be datad August 12 ajad to matara
Hóvember 12, 1948, nbieb were offered August fi, 1948, were ©penad at 1b© Federal Reserve
Banks on August 9.
tbe detalle of tble ieaue are as follove:
Total applled for - 11,608,398,000
fotal aeceptad
906,388,000 (Inoludes #49,943,000 enterad on a noneompetitive baeie and aeeepted in full at
tbe average prlee shown below)
Aterage prlee
- 99,746/ Squivalent rete of dleeonnt approx. 0*997$ per ennnm
Bange of aeeepted eoispetitive blds: (Bxeepting one tender of #300,000)
High
Low
* 99,764 Squivalent rete of dlseount approx. 0.963$) per anmusi
- 99,744
»
*
*
*
*
1.00g£ "
»
(38 pe roent of tbe aioou&t bld for at tbe low prlee was aeeepted)
Federal Reserve
District
Total
Applied for
Total
Aeeepted
Boston
New York
Fblladolpbla
Cleveland
Rlebmond
Atlanta
Oblongo
St. Louls
Mlnneapolls
Kan8as City
Dallas
San Francisco
♦
#
TOTAL
10,015,000
1,278,923,000
21,446,000
46,890,000
6,968,000
3,754,000
108,634,000
2,940,000
3,870,000
30,079,000
9,700,000
87,180.000
♦1,808,398,000
9,705,000
662,963,000
14,005,000
56,590,000
4,728,000
3,764,000
66,374,000
2,816,000
3,684,000
30,079,000
9,700,000
71.990.000
♦908,588,000
I
Wa s h i n g t o n , d . c .
In fo rm a tio n S e r v ic e
RELEASE, M O V I N G NpSPAFiRS*
Tuesday« August 10, 1948
No* S-817
The Secretary of the Treasury announced last evening that the tenders
for $900,000,000, or thereabouts, of 92-day Treasury bills to be dated
August 12 and to mature November 12, 1948, which were offered August 6,
1948, were opened at the Federal Reserve Banks on August 9©
The details of this issue are as follows:
Total applied for ~ $1,608,398,000
Total accepted
906,388,000 (includes $49,943>000 entered
on a non-competitive basis and
accepted in full at the aver
age price shown below)
Average price
— 99©745/ Equivalent rate of discount approx«
0*991% per annum
Range of accepted competitive bids:
(Excepting one tender of
$300 ,000 )
High
-
Lew
-
99«754 Ecuivalent rate of
0*963$ per
99c744 Equivalent rate of
lo 002$ per
discount approxo
annum
discount approx«
annum
(38 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
Chicago
St0 Louis
Minneapolis
Kansas City
Dallas
San Francisco
$
10,015,000
1,278,923,000
21,445,000
45,890,000
5,968,000
3,754,000
108,634,000
2 ,940,000
3,870,000
30,079,000
9,700,000
87,180,000
$ 9,705,000
652,963,000
14 ,005,000
36 , 590,000
4,728,000
3,754,000
66,374,000
2,816,000
3,684,000
30,079,000
9,700,000
71,990,000
$1,608,398*000
$906,388,000
TOTAL
0O0
Total
Accepted
COTTON WASTES
(In pounds)
COTTON CARD STRIPS made from cotton having a staple of less than 1-3/16 inches
in length, COMBER WASTE, LAP WASTE, SLIVER WASTE, AND ROVING WASTE, WHETHER
OR NOT MANUFACTURED OR OTHERWISE ADVANCED IN VALUE* Provided, howrver, that
not more than 33-1/3 percent of the quotas shall he filled by cotton wastes
other than comber wastes made from cottons of 1-3/16 inches or more in staple
length in the case of the following countries* United Kingdom, France,
Netherlands, Switzerland, Belgium, Germany, and Italy*
•
•
Country of Origin
*
•
United Kingdom....
Canada............
France............
British India.....
Netherlands.......
Switzerland.. . . . . . .
Belgium..... ......
J apan ........... ...
China.............
Egypt.............
Cuba..............
Germany...........
Italy.............
Totals
If
Total imports iEstablished!
Imports
Sept.
20,
1947,
j
33-1/3$
ofjSept.
20, 1947,
*
t to July 31, 19ii$Total Quota! to July 31» 1/
19U8
4,323,457
1,441, 152"
19,703
19,703
175,266
239,690
- ■
75,807
227,420 j
69,627 j
69,627
22,747 |
68,240
i
14,796 i
44,388 !
!
12,853
38,559
j
s
1
.
341,535
*
•
’
17,322
!
8,135
I
J
I
6,544
I
25,443
76,329
7,088
21,263
Established
TOTAL QUOTA
■
5,482,509
Included in total imports
column
26k,596
2.
1,599,886
19,703
j
M E D I A T E RELEASE
¿¿7 „August'JW; 19liS______
III //M:':
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,
194-7, to July 31
1946■^ar e as'f oH o w s :
I
Country of
Origin
COTTON (other than linters)
(In pounds)
Under 1-1/8° other
than rough or harsh
under 3/4"
Established 1Imports Sept.
Quota
20, 1947, to
July 31, 19^8
Egypt and the
Angio-Egyptian ’
Sudan............
783,816
Peru.........
■247,952
British India.... 2,003,483
China .........., * 1,370,791
Mexico..........
8,883,259
Brazil...........
618,723
Union of Soviet
Socialist Repub
lics. .... i.1.....
475,124
Argentina........
5,203
Haiti...........
237
Ecuador..........
9,333
Honduras1 . ^....
752
Paraguay.........
871
Colombia........♦
124
Iraq.............
195
British East
‘
Africa...........
2 ,240
N et her land s *East ’
'
Indies...--- ....
71,-388
Barbados«........
Other British
West Indies l/...
21^321
Nigeria..... ....
5,377
Other British
West Africa 2/...
16,004
Other French
Africa 3/«.......
689
Algeria and Tunisia
-
1-1/8” or more j Less than 3/4"
but less than Iharsh or rough 5/
1-11/16° U
Imports Sept.
IImports Sept. 20,
20, 1947, to
1947, to July 31,
July 31, I 9I48
19U8
_
21+7,952
20,h22
—
8 ,883,259
1*5,57U,1*72
1,903,999
_
—
_
1*2,876,627
“
_
618,723
1+75,121*
177,91*9
—
14,516,882 1 10,2U5,h80
.
1*5 ,656,1*20 '
1*2,876,627
Other than Barbados, Bermuda, Jamaica, Trinidad, and Tobago.
Other than Gold Coast and Nigeria.
Other than Algeria, Tunisia, and Madagascar.
Established quota - h9,656,¿20. (During period July 20 to 31, 19 )48,
1,116,187 pounds of cotton have been charged, to the additional quota
provided in President's Proclamation No. 2800.)
5/ Established quota - 70,000,000.
1/
2/
3/
C/
'
TREASURY DEPARTMENT
Washington
No* S-818
immediate release
Wednesday« August 11, 194-8
The Bureau of Customs announced today that preliminary data on imports of
cotton and cotton waste chargeable to the quotas established by the Presidents
proclamation of September 5, 1939* as amended, for the period September 20,
1947, to July 31, 1948, inclusive, are as follows?
COTTON (other than linters)
(In pounds)
Country of
Origin
Under 1-1/8“ other
:1-1/8“ or more
Less than 3/4-“ ,
than rough or harsh
?but less than
harsh or rough 2/
under 3/4”
•1-11/16“ kJ
Established slmports Sept*:Imports Sept* 20 Imports Sept* 20,
Quota
;20, 1947, to :1947> to July
1947, to July 31,
sJuly 31. 1948: 31, 1948
1948
Egypt and the
Anglo-Egyptian
Sudan,...*.,......
783,816
Peru...*,......
247,952
British India*..*.
2,003,483
China..... ....... 1,370,791
Mexico....,......
8,883,259
Brazil........ *..
618,723
Union of Soviet
Socialist Reputoics...... .
475,124
Argentina*.....,..
5,203
Haiti....,..,,....
237
Ecuador*,...,..,..
9,333
Honduras***#.....,
752
Paraguay..........
871
Colombia*#....*.,*
124
Iraq.... *.... .
195
British East
Africa.,,.........
2,240
Netherlands East
Indies.........
71,388
Barbados*•.•••,,.«
—
Other British
West Indies l/....
21,321
Nigeria...... .
5,377
Other British
West Africa ¿/*...
16,004
Other French
Africa 3/*........
689
Algeria and Tunisia
—
14j5X6*882
y
y
247,952
20,422
8,883,259
618,723
475,124
-
10,245,480
45,574,472
1,903,999
- 42,876,627
-
/
177,949
~-
45,656,420
42,876,627
Other than Barbados, Bermuda, Jamaica, Trinidad, and Tobago*
Other than Gold Coast and Nigeria#
2 / Other than Algeria, Tunisia, and Madagascar*
y Established quota 45,656,420* (During period July 20 to 31, 1948, 1,116,187
pounds of cotton have been charged to the additional quota provided in
Presidents Proclamation No* 2800.)
5/ Established quota - 70,000,000*
-
2
-
COTTON WASTES
(in pounds)
COTTON CARD STRIPS made from cotton having a staple of less than 1-3/16 inches
in length, CCMBER WASTE, LAP WASTE, SLIVER WASTE, AND ROVING WASTE, WHETHER
OR NOT MANUFACTURED OR OTHERWISE ADVANCED IN VALUE: 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:
A
Imports
%
Established:
Established : Total imports
Sept.
20, 1947,
Country of Origin: TOTAL QUOTA : Sept. 20, 1947, : 33-1/3$ of:
•
•
to
July
31.194b I
to
July
31,
1943;
Total
Quota:
•
United Kingdom.»*..
France.............
British India......
N cthe rlands...... .
Switzerland........
Belgium............
Japan...........,. •
China...... .......
Egypt......... .
Cuba..... .........
Germany............
Italy..............
T otals
1/
4,323,457
239, 690
227,420
69,627
68,240
44,388
33,559
341,535
17,322
3,135
6,544
76,329
23., 263
19,703
175,266
69,627
1,441,152
—
75,807
- ,
22,747
14,796
12,853
- .
—
—
25,443
7,038 .
19,703
.—
—
5,482,509
264,596
1,599,886
,19,703
Included in total imports, column 2*
oOo
IMMEDIATE RELEASE
August E#; 19**8
/
. »f
°
'
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 July 31» 19^8, inclusive, as follows?
Commodity
•
s
:
? Unit ?Imports as
Period and Quantity
?
of
?of July 31»
______________ ?Quantity?
19U8
Whole
milk,
fresh or
”—
--------w -------sour
Calendar year
3 ,000,000
Gallon
5*312
Cream, fresh or sour
Calendar year
1 ,500,000
Gallon
811
Butter
Quota ineffective for the
period April through October
Pish, fresh or frozen,
filleted, etc., cod,
haddock, hake, pollock,
Calendar year
cask, and rosefish
(1 )
2^,930,188
Pound
First 9”moaths
Quota Filled
White or Irish
potatoes?
Certified seed
Other
12
150 ,000,000
60,000,000
Pound
Pound
11*9 ,136,865
53 ,565.07«
Walnut s
May 22 * Dee.3 1 , 3»333»333
Pound
13 M 15
months from
Sept.1 5 ,19^7
19**8
(l)
The proviso to Item
limits the
imports for consumption at the quota
rate to 18 ,697*6^1 pounds during the
first 9 months of the calendar year.
Dae to a provision of thè President1s 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. 12 ,7^9,168 pounds of
such Cuban tobacco were imported for consumption during the period January 1,
to July 31, 19 ^8 , inclusive.
TREASURY DEPARTMENT
Washington
IMMEDIATE RELEASE
Wednesday, August 11, 194-3
No. S-819
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 July 31, 1943, inclusive, as follows:
Commodity
3
•
*
•
Period and Quantity
Unit
*Imports as
;of July 31,
: of
Quantity:
1943
Whole milk, fresh or
sour
Calendar year
3,000,000
Gallon
5,312
Cream, fresh or sour
Calendar year
1,500,000
Gallon
811
Butter
Quota ineffective for the
peiiod April through October
Elsh, fresh or frozen,
filleted, etc., cod,
haddock, hake, pollock,
cusk, and rosefish
Calendar year
White or Irish
potatoes:
Certified seed
Other
Walnuts
First 9-months
Quota Filled
(i)
24,930,188
Pound
12 months from 150,000,000
60,000,000
Sept.15,1947
Pound
Pound
149,136,865
53,565,078
May 22 - Deo.31, 3,333,333
1948
Pound
134,415
(;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, 1943, 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, 12,749,168 pounds of
such Cuban tobacco.were imported for consumption during the period January 1,
to July 31, 1943, inclusive.
<r
—V
POR IMMEDIATE RELEASE,
•August 1 1 1
The Bureau of Customs announced today preliminary figures showing the
quantities of wheat and wheat flour entered, or withdrawn from warehouse, for
consumption under the import quotas established in the President’s proclamation
of,May 28, 194-1, as modified by the' President’s proclamations of April 13, 1S42,
V a n d April 29, 1943, for the 12 months commencing May 29., 1948, as follows:
Wheat flour, semolina,
crushed 'or bracked
wheat, and similar
Country
Origin
B p
:Established
:
Quota
(Bushels)
Canada
795,000
.. China
Hungary
—
Hong Kong
■—
Japan
100
Jnited Kingdom
-‘
Australia
100
Germany
100
Syria
‘Tew Zealand
— '.
Stale
100
lether lands
2,000
Argentina
100
Italy
—
Suba
1,000
»Vance
’■v—
Treece
100
texico
'—
Manama
— ’
Jruguay
1
1
“
V iand and Danzig
—
Sweden
—
Jugoslavia
—
forway
Sanary Islands
1,000
lumania
100
>uat emala
100
Brazil
Jnion of Soviet
Socialist Republics
100
100
Belgium
800,000
:
Imports
:May 29, 1946, to
: July 31. 19h8...
(Bushels)
8
—■
'
....pffVn>
n
.-
■ ~
—~ .
'
ISSISi
—
. - .:
■ 4:
-
Established
:
Quota
Imports
May 29, 1940,
to July 31, 19i
(Pounds)
(Pounds)
3,815,000
24,000
13,000
13,000
8,000
75,000
1,000
5,000
5,000
1,000
1,000
1,000
14,000
2,000
12,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
.'ivT*
92.700
160
•—,
-
F
o0o<
4,000,000
92,860
TREASURY DEPARTMENT
Washington
FOR IMMEDIATE RELEASE
Wednesday, August 11« 1948
No. S-820
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 Presidents proclamation
of May 28, 194-1, as modified by the Presidents proclamations of April 13, 1942,
and April 29, 194-3, for the 12 months commencing May 29, 194-8, as follows*
Wheat flour, semolina,
crushed or cracked
wheat, and similar
wheat oroducts
:
Imports
*
Imports
:Established
:May 29,194-8, to :
Quota
: May 29, 1948,
:to July 31.1948
: July 31. 194-8
(Bushels)
(Pounds)
(Pounds)
8
3,815,000
92,700
24-,000
160
—
13,000
—
13,000
M
8,000
mm
—
75,000
—
++
1,000
mm
5,000
mm
5,000
mm
—
1,000
—
mm
1,000
m
m
T
1,000
—
14-,000
mm
2,000
mm
12,000
m
m
1,000
-*
mm
1,000
—
mm
X, 000
mm
1*000
m.
1,000
mm
1,000
mm
1,000
mm
1,000
mm
1,000
m—
1,000
Wheat
Country
of
Origin
Canada
China
Hungary
Hong Kong
Japan
United Kingdom
Australia
Germany
Syria
New Zealand
Chile
Netherlands
Argentina
Italy
Cuba
France
Greece
Mexico
Panama
Uruguay
Poland and Danzig
Sweden
Yugoslavia
Norway
Canary Islands
Rumania
Guatemala
Brazil
|Union of Soviet
Socialist Republics
Belgium
:Established
Quota
(Bushels)
795,000
■—
r*
—
—
100
100
100
«■*
—
100
2,000
100
<**
1,000
100
—
—
-*
—
T*
1,000
100
100
—
mm
-
100
100
800,000
mm
-
mm
-
V*
-
8
'oOo-
ST
-
4-,000,000
92,860
FOR IMMEDIATE RELEASE
Aug ust
''
—
191+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 191+6-, from January 1, 191+8, to July 31, 191+8,
inclusive, as follows:
Products of
•
Philippine Islands*
Established Quota :
Quantity
:
Unit of :
Quantity :
Imports as of
July 31, 191+8
4
•
Buttons
850,000
Gross
11 +3,052
832,337
Cigars
200,000,000
Number
Coconut Oil
1+1+8,000,000
Pound
1*5,1+50,787
Cordage
6,000,000
tt
1,51+1,1+56
Rice
1,01+0,000
it
-
Sugars, refined )
unrefined)
Tobacco
1 ,901+,000,000
6 ,500,000
ft
it
1+,1+99,371+
259,651,956
203,278
TREASURY DEPARTMENT
Washington
FDR IMMEDIATE RELEASE,
Wednesday, August II, 1948
No* S-821
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 31, 1948,
inclusive, as follows:
Products of
:
Philippine Islands:
Buttons
Established Quota:
Quantity
:
850,000
Unit of :
Quantity :
€:.
imports as of
July 31, 1948
Gross
143,052
832,337
Cigars
200,000,000
Number
Coconut Oil
448,000,000
Pound
45,450,787
1,541,456
Cordage
6,000,000
It
Rice
1 ,040,000
II
1,904,000,000
H
4,499,374
259,651,956
6, 500,000
«
203,278
Sugars, refined )
unrefined)
Tobacco
of taxation the amount of discount at which Treasury bills are originally sold
by the United States shall be considered to be interest.
Under Sections U2 and
117 (a) (1) of the Internal Revenue Code, as amended by Section 115 of the Reve
nue Act of 19i*l, 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 inolude 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
t
x x 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 m i 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 final.
Subject to these reservations, non-competitive tenders for $200,000 or
less without stated price from any one bidder will be accepted in full at the
average price (in three decimals) of accepted competitive bids.
Settlement for
accepted tenders in accordance with the bids must be made or completed at the
Federal Reserve Bank on
August 1$?, I 9I4.8
, in cash or other immediately avail-
able funds or in a like face amount of Treasury bills maturing August 19. 19L.8
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 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 any State, or any of the
possessions of the United States, or by any local taxing authority.
For purposes
TREASURY DEPARTMENT
Washington
s
FOR RELEASE, MORNING NEVISPAPERS,
Friday, August 13, 19U8.
The Secretary of the Treasury, by this public notice, invites tenders for
À / -,'
1. 5S
*’> *|§i
| 900,000,000
, or thereabouts, of
91
-day Treasury bills, for cash and
August 19* 19U8 s to be issued on
■
' jiTXT "
."""
in exchange for Treasury bills maturing
a discount basis under competitive and non-competitive bidding as hereinafter
provided.
will mature
interest.
August 19, 19U8_____ > and
The bills of this series will be dated
November 18. 19k8
» 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
delight saving
closing hour, two o ’clock p.m., E a s t e r n t i m e , Monday, August 16. 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
than three decimals, e. g., 99.925.
100 , with
Fractions may not be used.
.
7
'
- \
not more
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
"' ““ ^
FOE RELEASE, MORNING NEWSPAPERS,
Friday, August 13, 19AS«_______
-- ;
—
Mo. S-S22
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 August 19, 1948, 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 August 19, 1948, and
will mature November IS, 1948, when the face amount will be payable without
interest. They will be issued in bearer form only, and in denominations of
;4-1,000, 45,000, *10, 000, 4100, 000, 4500,000, 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, August 16, 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 100, wtith 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 aid 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 4200,000 or less Ytfithout 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 August 19, 19 4^, in cash or other immediately avail
able funds or in a like face amount of Treasury bills maturing August 19,
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 to estate, inheritance, gift or other excise taxes, whether Federal
or State, but shall-be exempt from all taxation now or hereafter imposed
on the principal or interest thereof by any State, or any of the
possessions of the United States, or by any local taxing.authority* For
purposes of taxation the amount of discount at which. Treasury bills are
originally sold by the United States shall be considered to be,interest*
Under Sections 42 and 117 (a) (1) of the Internal Revenue Code, as
amended by Section H 5 of the Revenue Act of 19 41# 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 fi;om consideration as capital assets» Accordingly,
the owner of Treasury bills (other than life insurance companies) issued
hereunder nded 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*
V
"7
3
Some o f the p o i n t s
covered f o r r e t u r n i n g r e s i d e n t s are
the r e q u i r e m e n t s as to w r i t t e n c u s t o m s d e c l a rations,
the
c i r c u m s t a n c e s u n d e r w h i c h oral d e c l a r a t i o n s a re permi s s i b l e ,
methods,
the
exe m p t i o n s of
certain circumstances,
0100
and
■ÏJOO
now authorized under
the r e s t r i c t i o n s on l i q u o r a nd cigars,
a n d the r u les on exe m p t i o n s
in general.
N o n r e s i d e n t s are i n f o r m e d on
such subjects as to
the k i n d s of articles they m u s t declare,
what e x e m p t i o n s
duty a n d i n t e r n a l revenue taxes are granted' them,
c e r t i f i c a t e s m ay be o b t a i n e d for free
for us e
valua
from
and h o w
entry of v e h i c l e s
intended
in touring.
There
is further d a t a for all t r a v elers on the extent
to w h i c h i m p o r t a t i o n of certain a r t i c l e s is f o r b i d d e n or
restricted.
Suggestions
are given on the most h e l p f u l m e t h o d s
of listing,
p a c k i n g and o p e n i n g baggage.
The b r o c h u r e notes that its
contents do not
cover
i m m i g r a t i o n requirements*
S e c r e t a r y Snyder
or a s s o c i a t i o n s
said that a n y a d d i t i o n a l o r g a n i z a t i o n s
d e s i r i n g to p r i n t and d i s t ribute
should comm u n i c a t e w i t h
H Customs Hints"
the Bureau o f Customs, 'Washington,
-o-
2
The participating railroads include some of the lines
operating in Canada and Mexico.
Secretary Snyder expressed appreciation of the cooperation
the Treasury has received from private business and industry
in the "Customs Hints" enterprise. "The cooperation has made
possible a helpful .new service to persons' crossing our borders
or entering our ports in western hemisphere travel," he said.
"Customs Hints" is being printed in two colors, and handdrawn illustrations add to the brochure1s eye-appeal. It contains
a message to travelers from Trank Dow, Acting Commissioner of
Customs,
reading:
"Tourist travel among nations not only creates good will
but also supplies part of the money that finances world trade.
In your travel, help us to serve you better by reading these
general hints about the U .S. Customs laws. The full requirements
of law and regulation cannot, of course, be spelled out in this
small booklet. So, when in doubt, ASKJ Ask your customs officers,
so that we may speed your travel.11
After an introductory paragraph stressing the importance
of accurate answers to any questions asked by customs officers,
the brochure continues with a section for the information
of returning residents and another for the information of
nonresidents
TREASURY DEPARTMENT
In fo rm a tio n S e r v ic e
WASHINGTON, D .C .
No. S-823
International travelers will be aided by a new publication, »»Customs
Hints’*, soon to be distributed among returning Americans and among
visitors from Canada, Cuba, Mexico and other western hemisphere countries«
Secretary Snyder announced today that
the publication had been completed between
connected with the transportation industry
Copies will be available to travelers from
time*
arrangements for issuance of
the Treasury and organizations
and the travel business«.
various sources within a short
’’Customs Hints’* is an illustrated brochure telling its readers in'
non—technical, layman*s language how they may speed themselves through
the American customs* It.sums up with the greatest possible simplicity
and clarity essential points of customs laws and regulations*
Railroads, steamship companies and air transport lines, through their
national associations, and the American Automobile Association volunteered
to cooperate with the Treasury in the publication and distribution of the
pamphlet* They will have thousands of copies of >*Customs Hints»» printed
at their own expense and placed in the hands of western hemisphere
travelers using their facilities* The Treasury will supply copies to
travelers through local customs offices so far as appropriations permit*
The participating railroads include some of the lines operating in
Canada and Mexico*
Secretary Snyder expressed appreciation of the cooperation the
Treasury has received from private business and industry in the »»Customs
Hints” enterprise^ ’»The cooperation has made possible a helpful new
service to persons crossing our borders or entering our ports in western
hemisphere travel,” he said*
’’Customs Hints” is being printed in two colors, and hand-drawn
illustrations add to the brochure*s eye—appeal* It contains a message to
travelers from Frank Dow, Acting Commissioner of Customs, reading:
’’Tourist travel among nations not only creates good will but also
supplies part of the money that finances world trade* In your travel,
help us to serve you better by reading these general hints about the U*S*
Customs law^s* The full requirements of law and regulation cannot, of
course, be spelled out in this small booklet* So, when in doubt, ASKi
Ask your, customs officers, so that we may speed your travel*”
-2
-
After an introductory paragraph stressing the importance of
accurate answers to any questions asked by customs officers, the
brochure continues with a section for the information of returning
residents and another for the information of nonresidents*
Some of the points covered for returning residents are the requirements as to written customs declarations, the. circumstances under which
oral declarations are permissible, valuation methods, the exemptions of
$100 and $300 now authorized under certain circumstances, the restrictions
on liquor and cigars, and the rules on exemptions in general*
Nonresidents are informed on such subjects as to the kinds of
articles they must declare, what exemptions from duty and internal
revenue taxes are granted them, and how certificates may be obtained for
free entry of vehicles intended for use in touring*
There is further data, for all travelers on the extent to which im
portation of certain articles is forbidden or restricted* Suggestions
are given on the most helpful methods of listing, packing and opening
baggage,
The brochure notes that its contents do not cover immigration
requirements*
Secretary Snyder said that any additional organizations or associa
tions desiring to print and distribute ”Customs Hints’1 should communicate
with the Bureau of Customs, Washington.
—oOo—
-aThe officer had contracted for the purchase of 85
pounds of marihuana for the sum of $3*^00 from Walter Lee
Mitchem of Houston.
Delivery was made by Mitchem in a car
driven by his wife, Gladys.
While transferring the marihuana,
which was contained in six 5~gallon lard cans, both defendants
were arrested.
Mitchem was convicted on July 6, 19^8, and
sentenced to serveyour years in a Federal penitentiary.
Investigations conducted simultaneously by the Atlanta,
New York and Philadelphia offices of the Bureau of Narcotics
resulted in the arrest of eleveh persons, who were convicted
in May by the United States District Court, Camden, N. J., for
violation of the Federal Marihuana Law.
Four of the violators were enrolled as students in
two universities, their ages ranging from twenty-one to twentyfour years.
The other seven were professional musicians.
The
marihuana involved in this violation was alleged to have been
smuggled into the United States from Cuba through the Port of
Miami.
It was prepared for sale and distribution by three of
the students in a dormitory of one of the universities.
After the marihuana was processed and packaged, a
portion of it was brought to Atlantic City, N. J., for distribu
tion by three members of the student group.
-7 associates, Elaine Peltier and Anthony Nader, Labard broke away
from officers and dashed toward a dresser which contained a
loaded shotgun.
When he refused to halt/\-s: detectiv^ armed
with a machine-gun^ fired and Labard was mortally wounded.
The officers, who had been forewarned of the dangerous
characteristics of Labard and his associates, found two sawedoff shotguns, a sub-machine gun, revolvers, pistols and ammuni
tion in rooms occupied by the trio.
Labard, freed a short time previously after having
served a 12-year sentence in a Canadian prison for bank robbery,
and the Peltier woman were wanted by Dominion authorities on a
vtsrtnt
charge of illegal possession of a large quantity of heroin seized
from them at Hamilton in April.
Under bonds of $10,000 each,
the two fugitives had escaped from Canada by boat across the
Detroit River.
Labard was a known associate of Donald "Mickey"
McDonald Mnd Ulysses Lauzon, both addicts and international
(Ai fcrC
bank robbers, who-sczzy said to be the two most-wanted Canadian
fugitives at this time.^
Nader was on parole from a 20-year sentence for an
armed robbery in Cincinnati in 1939.
The gang apparently was
assembling weapons for a series of armed hold-ups.
Eighty-one and a half pounds of screened marihuana,
one of the largest seizures ever made by Treasury agents in
combatting the internal dope traffic, was taken by a narcotic
officer operating in Texas, and two offenders were placed in
custody.
-
6
V
-
4
Commission on Narcotics at Lake Success, that Turkey was an
important source for illicit narcotic drugs smuggled into this
country.
Another investigation abroad revealed the source of
#
unusually large seizures of heroin made by the Bureau of Cus
toms in 1947 at the port of New York.
Thirty-two pounds of
the drug had been taken from the French ship SAINT TROPEZ when
it arrived from France in March, 1947, and a month earlier six
pounds had been captured on the American ship JOHN ERICSON.
Subsequent investigation of the two cases by Treasury agents
developed information regarding the identity of suspects in
Marseilles, who might be responsible for these shipments.
In June, 1948, a narcotic agent took all available
information to the French authorities at Marseilles and arranged
a cooperative effort in the development of the case.
In the
Investigation that followed, police took into custody several
narcotic traffickers including Luclen Santoni, alias "Dominick.M
Santoni was arrested while attempting to make a sale of 300
grams of heroin to the American agent.
He later was definitely
identified as the source of the heroin which had been seized
Uv^reci
at New York on the SAINT TROPEZ.
T .td e n "the.
0 1 r____
ap p > r» « 5
«*5 ~fchal~
PFrench
V e n é h otarie,
onnc. la
As the culmination of anTH v e ?
c»CHer G ' w w n m e n T
Cocal pa-Vc^reasury^gents, James Labard, Canadian narcotic violator and
fugitive, was shot and killed by^police detective* on June 1,
1948, when he reached for a sawed-off shotgun in his quarters
in a Cincinnati rooming house.
Following the arrest of his
M
Q
- 5 -
it was readily available there for sale to seamen from American
ships.
They said that after purchasing more than a kilogram
of the pure drug in Istanbul they brought it to this country
and successfully smuggled it in through a Florida port.
As a result of these disclosures and other informa
tion which pointed to Istanbul as a major source of supply for
the American dope^ traffic, a United States narcotic agent was
sent to Turkey in May.
Posing as a seaman smuggler, and coop
erating closely with the Turkish police, the Treasury man car
ried on negotiations with heroin sellers under circumstances
described by his bureau as "extremely hazardous."
The illicit
a
dealers finally ddivered to the agent three kilograms of pure
heroin, and on a prearranged signal, the police officers, who
had surrounded the house where negotiations were being made,
burst in and arrested four men.
Following these arrests, Turkish police conducted an
intensive investigation which resulted in the seizure of a
clandestine heroin manufacturing plant and the capture of
fifteen additional kilograms of the drug.
The arrested men
confessed to operation of the seized factory, and to having pur
chased the output of other clandestine heroin plants, thr nntoyfaaf which was largely intended for the American traffic.
These Important dope seizures and arrests supported
the contention which Commissioner Anslinger, the United States
delegate, had previously voiced before the United Nations
and found strapped to his back and stomach two double-glassine
packages containing 26 ounces of cocaine hydrochloride.
He
stated that a crewman had paid him one dollar to carry the
packages ashore.
Luther Dace, Arthur Dace and Angelo Gonzales, crew
members of the SANTA LUISA, were arrested as owners of the
cocaine, and have already been tried, convicted and sentenced.
Luther Dace and Gonzales received five-year sentences, and
Arthur Dace one year and one day in Federal prison.
Late in June a Customs officer at New York searched
a seaman as he came ashore from an Italian vessel, and found a
small sample of morphine in one of his pockets.
The sailor
said the morphine was part of a lot concealed in a garbage pail
which had been taken to the city dump.
Agents went to the
dump and, after a week spant digging in garbage "up to their
,,
^ ounC&S
waists , found a package containing 23— q-ttct-rtor o u n o e b o t t l e s
of morphine bearing Italian labels^ m>
©-£ Heroin
t - 'l
^Ounces o f eoe«tne.
Aided by New York police, narcotic agents last Feb
ruary arrested Michael George Phillips, a Greek sailor, for
possessing 21 ounces of heroin.
They also apprehended two ac
complices, Alexander Faguri, who had stored fifteen additional
ounces of the drug in the parcel room of a bus terminal in New
York City, and Joseph Nasser, both seamen. All three were
*
%
subsequently convicted and given penitentiary sentences.
The defendants in this case indicated that the source
of the heroin seized from them was Istanbul, Turkey, and that
In terms of poundage, the twin seizures of raw opium
at Boston and New York on the British shop SILVERLARCH con
stituted the largest Customs narcotics haul of the fiscal year.
Over fifty-five pounds of the drug was uncovered by inspectors
on the ship.
On March 8 at New York Customs agents boarded an
American ship arriving from LeHavre and seized fifteen pounds
of uncut heroin, worth a fortune in the illicit market.
Nine
and a half pounds of this highly-refined drug was also taken
when Customs men searched a French plane which arrived in New
York during the last week in June.
The latter haul made his
tory, for it was the first seizure of narcotics drugs ever made
h 4 ^fr a 4 jjcf be«.rv
on an airplane.
No arrests irtfoo made, but the plane was taken
into custody.
As a result of information coming to the Treasury
that Peruvian cocaine was being smuggled into Charleston, Mobile
and Savannah on ships engaged in the South American trade, a
joint Customs-Narcotics investigation was conducted early this
year.
Cocaine had begun to appear in increasing quantity in
the illicit traffic of Harlem, and it was thought that the drug
was being transported overland from Southern ports.
The Treasury men were on hand when the Grace Line
ship Santa Luisa arrived at Charleston on April 3 from Callao
and Valparaiso.
A young Negro newsboy went aboard the vessel
shortly after it berthed, remained a few minutes and returned
to the dock.
The agents detained the boy, searched his person
The number of persons arrested for violation of the
¿Narcotics and marihuana laws increased sharply.
During fiscal
1948, 3,180 persons were placed in custody by agents of the Bu
reau of Narcotics, as compared with 2,855 in 1947.
Of this total,
987 persons were arrested for violation of the marihuana law;
2,193 for violation of the narcotics laws.
Mexico, according to the Bureau of Narcotics, is
still an important source of supply for the smuggler of illicit
dope, although iithgr areas such as Turkey assumed greater rela
tive importance during the year.
The scarcity of narcotics
from other sources was reflected in the continued kubstantial
number of burglaries, robberies and larcenies from pharmacies,
wholesale houses and other registered establishments.
Such
violations showed only a slight decrease during the period.
Raw opium seized at Atlantic Coast ports by Customs
in most instances originated in Turkey, India and Iran, in the
’order named; and Marseilles and LeHavre were important transit
ports.
Smoking opium seizures in most instances were of
Mexican origin.
Heroin from the "clandestine" plants of Turkey
was taken in increased quantities, and there were several
,,
‘
notable seizures of Peruvian cocaine,
l— ebar'ioi'v
m arki-sh hashish, Tunisian
takrouri (marihuana) and African marihuana, known as "dagga",
were frequently taken,
Much of the "dagga" was wrapped in palm
leaf covers, known as "shoes."
Seizures of marihuana on the Mexican border were
heavier in the first few months of 194$ than in many years.
During this period 1,100 pounds of marihuana was taken by Cus\
toms as compared with 1,115 pounds seized throughout the Uniteci
States jn the calendar year 1947f and in April alone there were
several lots captured that totaled more than 100 pounds each.
Narcotics Release - Sunday papers
Heroin from Ihrkey, Italian morphine, Peruvian cocaine,
Lebanon hashish, Indian and Iranian opium, African M a g g a ’,* and
Tunisian "takrouri" - along with thousands of ounces of Mexican
marihuana - were included in huge illicit dope seizures made by
the Treasury*s bureaus of Narcotics and Customs during the past
fiscal year*
Tentative reports submitted ¿ a d a y to Secretary Snyder by
Commissioner of Narcotics Harry J. Anslinger and Deputy Commis
sioner of Customs Edson J. Shamhart, representing the two Treasury
agencies concerned with the suppression of the traffic in dope,
show that during the year narcotic drug seizures totaled 6,755
ounces as compared with 6,091* ounces taken in fiscal 1947.
Marihuana captured by agents of the two bureaus amounted to
approximately 40,000 ounces, nearly double the seizures of the
previous year, and 17,015 marihuana cigarettes were taken., an
increase of 8,000 over 1947.
"As an evidence of the splendid work being done by Treasury
agents engaged in the suppression of the dope traffic," Secretary
Snyder ne^ed^ "arrests per number of officers employed contin
ues to rise.
Narcotic drugs still are considered to be scarce,
|?le
but price* decreases in certain areas.indicate a/vpostwar upturn
in the underworld trade."
This trend, the Secretary added, was
A
"far less than had been expected by the Treasury."
TREASURY DEPARTMENT
In fo rm a tio n S e r v ic e
RELEASE NEWSPAPERS
WASHINGTON, D .C .
No. S~824
Sunday. August 15. 1948
Heroin from Turkey, Italian morphine, Peruvian cocaine, Lebanon
hashish, Indian and Iranian opium, African ”dagga”, and Tunisian
’’takrouri” - along with thousands of ounces of Mexican marihuana - were
included in huge illicit dope seizures made by the Treasury’s bureaus
of Narcotics and Customs during the past fiscal year.
Tentative reports submitted to Secretary Snyder by Commissioner of
Narcotics Harry J. Anslinger and Deputy Commissioner of Customs Edson J.
Shamhart, representing the two Treasury agencies concerned with the
suppression of the traffic in dope, show that during the year narcotic
drug seizures totaled 6,755 ounces as compared with 6,091 ounces taken
in fiscal 1947.
Marihuana captured by agents of the two bureaus amounted to approx
imately 40,000 ounces, nearly double the seizures of the previous year,
and 17,015 marihuana cigarettes were taken, an increase of 8,000 over
1947.
”As an evidence of the splendid work being done by Treasury agents
engaged in the suppression of the dope traffic,” Secretary Snyder said,
’’arrests per number of officers employed continues to rise. Narcotic
drugs still are considered to be scarce, but price decreases in certain
areas indicate a noticeable postwar upturn in the underworld trade.”
This trend, however, the Secretary added, was ’’far less than had been
expected by the Treasury.”
The number of persons arrested for violation of the narcotics and
marihuana laws increased sharply. During fiscal 1948,
persons
were placed in custody by agents of the Bureau of Narcotics, as compared
with 2,855 in 1947. Of this total, 987 persons were arrested for viola
tion of the marihuana law; 2,193 for violation of the narcotics laws.
Mexico, according to the Bureau of Narcotics, is still an important
source of supply for the smuggler of illicit dope, although areas such
as Turkey assumed greater relative importance during the year. The
scarcity of narcotics from other sources was reflected in the continued
substantial number of burglaries, robberies and larcenies from phar
macies, wholesale houses and other registered establishments. Such vio
lations showed only a slight decrease during the period.
Haw opium seized at Atlantic Coast ports by Customs in most in
stances originated in Turkey, India and Iran, in the order named; and
-
2
Marseilles and LeHavre were important transit ports. Smoking opium
seizures in most instances were of Mexican origin* Heroin from the
h clandestine” plants of Turkey was taken in increased quantities, and
there were several notable seizures of Peruvian cocaine. Lebanon hashish,
Tunisian takrouri (marihuana) and African marihuana, known as ’’dagga”,
were frequently taken. Much of the ’’dagga" was wrapped in palm leaf
covers* known as ’’shoes.”
Seizures of marihuana on the Mexican border were heavier in the
first few months of 194-8 than in many years. During this period 1,100
pounds of marihuana was taken by Customs as compared with 1,115 pounds
seized throughout the United States in the calendar year 194-7, and in
April alone there xvere several lots captured that totaled more.than
100 pounds each.
In terms of poundage, the twin seizures of raw opium at Boston and
New York on the British ship SILVERLARCH constituted the largest Customs
narcotics haul of the fiscal year. Over fifty-five pounds of the drug
was uncovered by inspectors on the ship.
On March 8 at New York Customs agents boarded an American ship ar
riving from LeHavre and seized fifteen pounds of uncut heroin, worth a
fortune in the illicit market. Nine and a half pounds of this highlyrefined drug was also taken when Customs men searched a French plane
which arrived in New York during the last week in June. The latter
haul made history, for it was the first seizure of narcotics drugs ever
made on an airplane* No arrests have as yet been made, but the plane
was taken into custody.
As a result of information coming to the Treasury that Peruvian
cocaine was being .smuggled into Charleston, Mobile and Savannah on ships
engaged in the South American trade, a joint Customs-Narcotics investi
gation was conducted early this year. Gocaine had begun to appear in
increasing quantity in the illicit traffic of Harlem, and it was thought
that the drug was being transported overland from Southern ports*
' The' Treasury men were on hand when the Grace Lin© ship SANTA LUISA
arrived at Charleston on April 3 from Callao and Valparaiso, A young
Negro newsboy went aboard the vessel shortly after it berthed, remained
a few minutes and returned to the dock. The agents detained the boy,
searched his person and found strapped to his back and stomach two
double-glassine packages containing 26 ounces of cocaine hydrochloride.
He stated that a crewman had paid him one dollar to carry the packages
ashore.
Luther Dace, Arthur Dace and Angelo Gonzales, crew members of#the
SANTA LUISA, were arrested as owners of the cocaine, and have already
been tried, convicted and sentenced. Luther Dace and Gonzales received
five-year sentences, and Arthur Dace one year and one day in Federal
prison.
w* ^ —
Late in June a Customs officer at New York searched a seaman as he
came ashore from an Italian vessel, and found a small sample of morphine
in one of his pockets. The sailor said the morphine was part of a lot
concealed in a garbage pail which had been taken to the city dump.
Agents went to the dump and, after a week spent digging in garbage "up
to their waists", found a package containing nine ounces of morphine
bearing Italian labels, 14 ounces of heroin and 27 ounces of cocaine.
Aided by New York police, narcotic agents last February arrested
Michael George Phillips, a Greek sailor, for possessing 21 ounces of
heroin. They also apprehended two accomplices, Alexander Faguri, who
had stored fifteen additional ounces of the drug in the parcel room of
a bus terminal in New York City, and Joseph Nasser, both seamen. All
three were subsequently convicted and given penitentiary sentences*
The defendants in this case indicated that the source of the heroin
seized from them was Istanbul, Turkey, and that it was readily available
there for sale to seamen from American ships. They said that after pur
chasing more than a kilogram of the pure drug in Istanbul they brought
it to this country and successfully smuggled it in through a Florida
port.
As a result of these disclosures and other information which pointed
to Istanbul as a major source of supply for the American dope traffic,
a United States narcotic agent was sent to Turkey in May. Posing as a
seaman smuggler, and cooperating closely with the Turkish police, the
Treasury man carried on negotiations with heroin sellers under circum
stances described by his bureau as "extremely hazardous." The illicit
dealers finally delivered to the agent three kilograms of pure heroin,
and on a prearranged signal, the police officers, who had surrounded
the house where negotiations were being made, burst in and arrested
four men.
Following these arrests, Turkish police conducted an intensive in
vestigation which resulted in the seizure of a clandestine heroin man
ufacturing plant and the capture of fifteen additional kilograms of the
drug. The arrested men confessed to operation of the seized factory,
and to having purchased the output of other clandestine heroin plants,
which was largely intended for the American traffic.
These important dope seizures and arrests supported the contention
which Commissioner Anslinger, the United States delegate, had previously
voiced before the United Nations Commission, on Narcotics at Lake Success,
that Turkey was an important source for illicit narcotic drugs smuggled
into this country.
Another investigation abroad revealed the source of unusually large
seizures of heroin made by the Bureau of Customs in 1947 at the port of
New York. Thirty-two pounds of the drug had been taken from the French
ship SAINT TROPEZ when it arrived from France in March, 1947, and a month
earlier six pounds had been captured on the American ship JOHN ERICSON.
Subsequent'investigation of the two cases by Treasury agents developed
information regarding the identity of suspects in''Marseilles, who
might be responsible for these shipments*
In June, 194-8* a narcotip agent took all available information to
the French authorities at Marseilles and arranged a cooperative effort
in the development of the case. In the investigation that followed,
police took into custody several narcotic traffickers including Lucien
Santoni, alias "Dominick. " Santoni was arrested while attempting to
make a sale of 300 grams of heroin to the American agent. He later was
definitely identified as the source of the heroin which had been seized
at New fork on the SAINT TROPES* The drug delivered by Santoni bore
the same wrappings as that seized on the French plane last l\fe.rch*
As the culmination of an investigation conducted by local police,
Treasury and other Government agents, James Labard, Canadian narcotic
violator and fugitive, was shofb and killed by a police detective on
June 1, 194-8, when he reached for a sawed-off shotgun in his quarters
in a Cincinnati rooming house. Following the arrest of his associ
ates, Elaine Peltier and Anthony Nader, Labard broke away from officers
and dashed toward a dresser which contained a loaded shotgun* When he
refused to halt the detective, armed with a machine-gun, fired and
Labard was mortally wounded.
The officers, who had been forewarned of the dangerous character
istics of Labard and his associates, found two sawed-off shotguns, a
sub-machine gun, revolvers, pistols and ammunition in rooms occupied by
the trio.*
Labard, freed a short time previously after having served a 12-year
sentence in a Canadian prison for bank robbery, and the Peltier woman
were wanted by Dominion authorities on a charge of illegal possession
of a large quantity of heroin seized from them at Hamilton in April*
Under bonds of $10,000 each, the two fugitives had escaped from Canada
by boat across the Detroit River* Labard was a known associate of
Donald "Mickey" McDonald and Ulysses Lauzon, both addicts and interna
tional bank robbers, who were said to be the two most-wanted Canadian
fugitives at this time, (On July 19, the body of Lauzon was found near
Pascagoula, Mississippi, with shotgun wounds in the back.)
Nader was on parole from a 20-year sentence for an armed robbery
in Cincinnati in 1939* The gang apparently was assembling weapons for
a series of armed hold-ups.
Eighty-one and a half pounds of screened marihuana, one of the
largest seizures ever made by Treasury agents in combatting the internal
dope traffic, was taker by a narcotic officer operating in Texas, and
two offenders were placed in custody.
The officer had contracted for the purchase of 85 pounds of mari
huana for the sum of
,400 from Walter Lee Mitchem of Houston. Delivery
- 5 -
was made by Mitchem in a car driven by his wife, Gladys* While trans
ferring the marihuana, which was contained in s i x ’5-gaïlôn lard cans,
both defendants were arrested. Mitchem was convicted on July 6 , 194-8,
and sentenced to serve four years in a Federal penitentiary."
Investigations conducted simultaneously by the Atlanta, New York
and Philadelphia offices of the Bureau of Narcotics resulted In the ar
rest of eleven persons, who were convicted in May by the United States
District Court, Camden, New Jersey, for violation of the Federal Mari
huana Law.
Four of the violators were enrolled as students in two universi
ties , their ages ranging from twenty-one to twenty-four years. .The
other seven were professional musicians. The marihuana involved in
this violation was alleged to have been smuggled into the United
States from Cuba through the Port of Miami. It was prepared for sale
and distribution by three of the students in a dormitory of one of
the universities.
After the marihuana was processed and packaged, a portion of it
was brought to Atlantic City, New Jersey, for distribution by three
members of the student group.
oOo-
tío
míeme t m i s m m m
m
mango
(BATE0 DBCEMB1E.8, 1939)
KüTioB or
f©
call
fit l l a m a m o s
«f 2 pereosjfc D n i w x Bemda ©f l&d-jQ (datad Deeentoar S»
X$3 $>)* and othara
X*
Q m m m rm át
Ié M @ noti©# 1« baretr g i w * tbai a U ontatanding 2 p®r©esfc
Traaaajry Sonda ©f ISMhgO, datad Beoaidasr 8» 193?» *r* bebdar ©aliad
far raáaaptloa m Dm m Imhr 1$, 1$*$, ©» whlch data intaraat o» « à
banda i&Xl eaaae.
2*
MUS*** of ti*#©* benda |||§ in adirane» ©f tba métmptUm
date, b© off©red V m privile®» of «»shaaging all or ajar P***t ©^ tbaiar
©aliad bonia far ©ther intaraat-^saaring ©bllgatlane ©f iba tteitad
State», in whieb aveat publt© nette© *111 baraaftar b© giv©a «od an
offielal ©iraní»* g e w n i n g th© e x d u m p offaring will ba ieeaod*
3*
full informati©» regerdlag ib© j*rea©atation and aurr«nd#r
©f ib© benda far ©»di r©da^tl<m vm&r thta cali ©ili be f m m d in
Departfitent Cimilar So* 666, datad M r
21* & P W
John W» Snyder,
Seeratarr ©f th© Treasary*
Washington, íngnat 13, H W *
RELEASE, MOUSING NEWSPAPERS,
Friday, August 13, 191*8.
2
The Secretary of the Treasury announced today that all out
standing 2 percent Treasury Bonds of 191*8-50, dated December 3,
1939, are called for redemption on December 15, 19&8* There are
now outstanding $571,101,150 of these bonds.
The text of the formal notice of call is as follows*
~^
TREASURY DEPARTMENT
In fo r m a tio n S e r v i c e
WASHINGTON, D .C .
RELEASE, MORNING NEWSPAPERS
Friday, August 13, 1948*
No* S-825
The Secretary of the Treasury announced today that all outstanding
2 percent Treasury Bonds of 1948-50, dated December 8, 1939* are called for
redemption on December 15* 194S. There are now outstanding $571,431,150
of these bonds*
The text of the formal notice of call is as follows:
TWO PERCENT, TREASURE BONDS OF 1948-50
(DATED DECEMBER 8, 1939)
NOTICE OF CALL FOR REDEMPTION
To Holders of 2 percent Treasury Bonds of 1948-50 (dated December
and Others Concerned:
8,
1939),
!• Public notice is hereby given that all outstanding 2 percent Treasury
Bonds of 194S-50, dated December 8, 1939, are hereby called for redemption on
December 15, 194S, on which date interest on such bonds will cease*
2© Holders of these bonds may, in advance of the redemption date, be
offered the privilege of exchanging all or any part of their called bonds
for other interest-bearing obligations of the United States, in which event
public notice will hereafter be given and an official circular governing the
exchange offering will be issued.
3* Tu 1 1 information regarding the presentation and surrender, of t he bonds
for cash redemption under this call will be found in Department Circular
No. 666, dated July 21, 1941 *
John W* Snyder
Secretary of the Treasury
TREASURY DEPARTMENT,
Washington, August 13, 1948.
2
Mr. Bout hard left the Treasury Department in July, 19^-2,
to enter the Uriited States Navy. He was first assigned to the
Office of the Ojtief of Naval Operations, and later was detailed
H»!
to Civil Affairs work in Sicily and Italy and Southern Prance.
He was awarded the Legion of Merit for his services
in the Navy. At the time of his release from active duty in
the Navy, in 19^5, he held the rank of Commauider.
O
J D
IMMEDIATE RELEASE
& Friday , August 13, 1948
No* S-826
Secretary Snyder announced today that Frank A, Southard,J
is relinquishing his post as Director of the Office of
International Finance in the Treasury Department, effective
today, to become Associate Director of Research and Statistics
for the Board of'Governors of the Federal Reserve System.
By arrangement with the Board of Governors, however,
Mr. S0uthard will continue
as adviser to Secretary Snyder
on international monetary and financial matters, with' the
title of Special Assistant to the Secretary.
Hr... Southard has served as Director of the Office of
International Finance since July, 19^7*
An Ohioan by birth, Hr. Southard is prominent as an
educator as well as a Government official, having served as
Economics Instructor at the University of California and
Assistant Professor and later Professor of Economics at
Cornell University.
In the Government service he worked with the Tariff
and
Commission,/was a principal economist for, and later Assistant
Director of,, the former
Treasury.
Division of Monetary Research of the
K© is the autlo r of several books in the field of
international finance*
TREASURY DEPARTMENT
IMMEDIATE RELEASE
Friday, August 13« 1948
No. S-826
Secretary Snyder announced today that Frank A. Southard, Jr., is
relinquishing his post as Director of the Office of International
Finance in the Treasury Department, effective today, to become Associate
Director of Research and Statistics for the Board of Governors of the
Federal Reserve System.
By arrangement with the Board of Governors, however, Mr* Southard
will continue as adviser to Secretary Snyder on international monetary
ana financial matters, with the title of Special Assistant to the
Secretary.
Mr. Southard has served as Director of the Office of International
Finance since July, 1947.
An Ohioan by birth, Mr. Southard is prominent as an educator as well
as a Government official, having served as Economics Instructor at the
University of California and Assistant Professor and later Professor of
Economics at Cornell University.
In the Government service he v/orked With the Tariff Commission, and
was a principal economist for, and later Assistant Director of, the
former Division of Monetary Research of the Treasury. He is the author
of several books in the field of international finance.
Mr. Southard left the Treasury Department in July, 1942, to enter
the United States Navy. He was first assigned to the Office of the
Chief of Naval Operations, and later was detailed to Civil Affairs work
in Sicily ana Italy and Southern France.
He was awarded the Legion of Merit for his services in the Navy.
At the. time of his release from active duty in the Navy, in 1945, he
held the rank of Commander.
•oQo-
TREASURY DEPARTMENT
WASHINGTON,
in fo r m a t io n S e r v i c e
Thursday, A u g u s t
THE
12, 1 9 4 8
TC - 14
T R E A S U R Y
OFFICE CF THE SECRETARY
Tuesday, August 17. 1:30 P.M.. Depart
mental Auditorium, 12th and Constitution
Avenue. Secretary Snyder will attend a
meeting of the Presidents Committee on
the National Employ of the Physically
Handicapped. President Truman will open
this meeting, which is held for the pur
pose of completing plans for the obser
vance of NEPH Week, October 3 to 9*
C A L E N D A R
Association to be held in Detroit,
Michigan, September 26 through 29. The
Secretary will be the guest of President
Dodge and other officers of the A.B.A.
Tuesday♦ September 28. Secretary Snyder
will speak at' a dinner session of the
Tax Executives Institute, Mount Washing
ton Hotel, Bretton Woods, New Hampshire.
OFFICE OF THE UNDER SECRETARY
Friday. September 17. 9 P.M. Secretary
Snyder will speak at a dinner closing
the conference of the National Sales
Force of the United States Savings Bonds
Division, Hotel Lowry, St. Paùl, Minn.
Wednesday. September 22. 2 P.M. The
Secretary will address the annual con
vention of the National Association of
Supervisors of State Banks, Brown Hotel,
Louisville, Kentucky.
Friday « September 24 . Secretary Snyder
will address the Public Forum of the
Oklahoma City Chamber of Commerce and
the National Association of Employees of
Internal Revenue, at the Skirvin Tower
Hotel, Oklahoma City, Oklahoma.
Sundayt September 26. Secretary Snyder
will spend the day at the Seventy-Fourth
Annual Conference of the American Bankers
Thursday. September 23« Under Secretary
Edward H, Foley, Ur,, will address the
American Institute of Accountants, Chi
cago, Illinoist
COMPTROLLER OF THE CURRENCY
Wednesday. September 22. Preston Delano,
Comptroller of the Currency, will deliver
a speech before the annual meeting of the
National Association of Supervisors of
State Banks, Louisville, Kentucky.
OFFICE OF THE GENERAL COUNSEL
Monday. September 6. Thomas J, Lynch,
General Counsel, will speak before the
Real Property, Probate and Trust Law
Section of the American Bar Association,
-
'
2
OFFICE OF THE GENERAL COUNSEL
(Continued)
at the Association's annual convention
in Seattle, Washington.
Tuesday. September 28. Mr. lynch will
attend the meetings of the Tax Execu
tives Institute, Mount ?vrashington Hotel,
Bretton Woods, New Hampshire.
BUREAU OF FEDERAL SUPPLY
Saturday. August 1A. Clifton E. Mack,
Director of the Bureau of Federal Supply,
will leave by air for Paris, France, in
connection with the national stock pil
ing program, and ECA matters. He will
return to Washington around September 5.
Tuesday. August 17. Willis S. MacLeod,
Deputy Director, Standards Branch, will
attend the 3&th meeting of the Federal
Specifications Board in Washington. He
is Executive Vice Chairman of the Board,
which is composed of representatives of
eleven agencies.
BUREAU OF INTERNAL REVENUE
Aubrey H. Marrs. Head of the Bureau’s
Technical Staff, has returned from an in
spection trip to field offices of the
Bureau in Honolulu, T. H.
Wednesday. August 18. A farewell recep
tion will be given at the Kennedy-Warren
for Stewart Berkshire, Assistant Commis
sioner, who is transferring to San Fran
cisco, California, as Head of the Pacific
Division Technical Staff.
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 Public
Accountants, Hotel Copley Plaza, Boston,
Massachusetts. Subject: ’’Tax Adminis
tration. ”
Friday. August 20. Eldon P. King, Spe
cial Deputy Commissioner, will speak at
the Palace of Peace, The Hague, Nether
lands, at a meeting of the International
Bar Association, August 20 to 22. Sub-'
ject: ’’Fiscal Cooperation in Tax Trea
ties. ”
UNITED STATES COAST GUARD
Thursday. August 12. Admiral Joseph F.
Farley, Commandant, will attend the an
nual meeting of trustees of the Woods
Hole Oceanographic Institution, Woods
Hole, Massachusetts.
Monday. August 30. Rear Admiral Ellis
Reed-Hill, Engineer-in-Chief, will at
tend the Distinguished Guest banquet and
represent the Commandant at the 49th Na
tional Encampment of the Veterans of
Foreign Wars to be held in St.* Louis,
Missouri, August 29 to September 3*
Thursday through Sunday. September 2 to
li. Rear Admiral Raymond T. McElligott,
Chief, Office of Personnel, will repre
sent the Commandant at the AMVETS Na
tional Convention at Chicago, Illinois.
RETIREMENTS
Retiring August 31 from the Loans and
Currency Division, Bureau of the Public
Debt:
Joseph B. Lynch. Administrative Officer,
Registered Accounts Section, with 30
years Government service, all in the
Treasury Department.
Miss Annie 0, Kuyk. Senior Supervisor,
Registered Accounts Section, who has had
30 years’ service, all but one year of
which has been in the Treasury.
Mrs. Louise S. Baughman. Assistant to the
Chief, Loans and Currency Division, with
31 years of Government service, all of
which has been in the Treasury.
August 16,,at 10:30, in the Conference
Room 4426.
COMMUNITY CHEST CAMPAIGN
John S. Graham, Assistant Secretary of
the Treasury, has been designated to
serve as Chairman of the Treasury Depart
ment Community Chest Campaign. Paul
McDonald. Director, Office of Adminis
trative Services, will serve as ViceChairman for Operations for the Treasury
in the,forthcoming Chest campaign.
Ilf
STATEMENTS AND RELEASES
(Available in Room 4408, Treasury)
A summary of law enforcement activities
of the Bureau of Narcotics during the
1947 fiscal year, xvill be available
Thursday, August 12. It is for release
in Sunday papers, August 15.
BOND MEETING
A meeting of all Treasury Bond represen
tatives will be held Monday morning,
NOTE:
Items for the Treasury Calendar may be phoned to the Information Service
over extensions 2108, 2041:
Treasury extension 2993.
Internal Revenue extensions 650, 651; Coast Guard.
August
9$ Whß
TO fifi* BAHTKLTl
Thu fallowing markot transactions wmte nada during tha month
of July,
in diront and guaranteed aaourltlas of tho Gorera«*
nent for Treasury investami and othar accounts*
Purchases ♦*#♦•*#♦#*##******#*•* #5 ^4 6 1,5 0 0
S a ls a ............................................
flu ffO
Set Purchases ••••*** 15,1*36,950
(Sgd.) S. P. Gerard!
'
Chief, Birision of Inreataanta t
ÍHHV2ftlíJtt0>V1«UHCHÍ
sf C
Yisaoarrer t 8 / 9 A 8
TREASURY DEPARTMENT
WASHINGTON, D .C .
In fo r m a tio n S e r v i c e
RELEASE, MORNING PAPERS,
Monday, August 16, 194-8
No. S-827
During the month of July, 194-8, market trans-r*
actions in direct and guaranteed securities of the
Government for Treasury investment and other accounts
resulted in net purchases of
Snyder announced today*
oOo
436,950, Secretary
v
í
1
HUIASE, i
n
NffilSPAF&BS,
Tuesday, m
August
17,
1948.
tm
<W—wmwh>——ni»- »'i' inptil i igi
i
The secretary of the Treasury announced last evening that the tenders for
#900,000,000, or thereabouts, of 91-day Treasury hills to he dated August 19 and to natun
November 18, 1948, which «are offered August 13, 1948, were opened at the Federal Ream#
Banka on August 14*
The details of this issue are as follows*
Total applied for - #1,447,558,000
Total accepted
*
900,595,000 (includes 151,984,000 entered on a non
competitive basis and accepted in full at the
average price shown below}
Average price
* 99 *730/, Equivalent rate of discount approx* 1*045 per annum
Bange of aecepted competitive bids*
High
low
- 99*750 S&ulvalent rate of discount approx* 0.989^ per annum
m
it
«
*»
- 99*787
"
1*080$ *
*
(96 percent of the amount bid tor at tt. low prio. ... *—
*•*>
Federal Beharre
Bietriet
Total
Applied for
Total
Aeeepted
Bosten
Hew York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St* Louis
Minneapolis
Kansas City
Dallas
San Francisco
#
#
TOTAL
14,760,000
1,195,576,000
35,185,000
81,745,000
4,085,000
8,094,000
105,571,000
8,545,000
3,568,000
15,998,000
7,950,000
34*515.000
#1,447,558,000
5,558,000
714,503,000
4,685,000
19,513,000
3,085,000
7,994,000
98,951,000
8,537,000
3,568,000
15,958,000
7,948,000
16.567.000
#900,696,000
1
TREASURY DEPARTMENT
WASHINGTON, D .C .
In fo r m a t io n S e r v i c e
RELEASE, MORNING NEWSPAPERS
Tuesday, August 17, X948
No. S-828
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 .
August 19 and to mature November IS, 1948, 'Which were offered August 13,
19AS, were opened at the Federal Reserve Bank on August 16#
The details of this issue are as follows:
Total applied for - vl,44V,552,000
Total accepted
—
900,595*000 (includes $51,984,000 entered
on a non-competitive basis and
accepted in full at the aver
age price shown below/)
Average price
— 99*730/ Equivalent rate of discount approx«
1* 066 per annum
Range of accepted competitive bids:
High-
-
Low
-
99*750 Equivalent rate of
0*989% per
99.727 Equiv ¿lent rate of
1*060% per
discount approx.
annum
discount approx*
annum
/
(96 percent of the amour t bid for at the low price was accepted)
Federal Reserve
District
Total
Applied for
Total
Accepted
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St, Louis
Minneapolis
Kansas City
Dallas
San Francisco
TOTAL
$
14,760,000
1,193,576,000
35,185,000
21,765,000
4,025,000
8, O94, 000
105,571,000
2, 545,000
3,568,000
15,998,000
7,950,000
34,515.000
’*?!,447,5 5<, 000
$
5,552,000
714,503,000
4,685,000
19.513.000
,
3 025,000
7.994.000
98.951.000
■ 2,537,000
3.568.000
15.958.000
7,942,000
16,367,000
$900,595,000
*
1
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ta*ea# paymemt wlU h* mdi to' thè duly ©emétitmted
'iN^reeamtative o£ hi» ©«tata, er they «ay ha reitaued te ama or
mra a£ àia àaira er lagataea upea »atiefeetory preof ©£ thair ■
ri¿feti ©ut aie reissue vili ©a vada la twa m&aea jointly or at
eoavmara*
2« Iftaaolutiem or marcar of aargaratleaa# titM— lf a
eerparatiem or e&lmeerperatad hedyt la amate mane mataa ara iaaaribté*
la dìeeelved, eamaeiidaiad*
mm$éé
or ©therwiae eaa»£ea ita argania»*
tiom, tao netaa M y ©a paid ta* or ralaaaad ia hh# man* af taoaa
partoma or or^miaatioma lawfully a&titlad te tka a m i « ai* suoh
torporette» or body ©y reasom e£ amah oàa&gaa la «riamicatie&»
$»
Saalonaptoy»*» If aa imceràhad temer of mota© la dealerad
baakrvpt «r imaoleant* payaamt» orni mot reieeue, vili ©a modo to
thè duly quaiii'ieà tmstee*-recai ver or einilar repreaaatatlvrir
thè motta ara aubaìtted vith eatiefaetery proti* e£ kit appolntaaet
and qualifi©atlon*
4#
Creditore1 &ighta•— dvyaat» tot mot rai«#ue# vili he
vada aa a raault tf judieial preeaedimga la a court af eevpetamt
^triadi «tiorni if thè mote# ara attoltted vita proper proti1 af amidi
proeeediage and thair finality*
6»
Inetruatleaa end imfer88ettem*^ief©re axaeutl&g thè requeet
far papsast or subiaitting tha motta under thè previa lana af tàie
eeettoft« inetrattiene ehauld ha ottained froa. a federai deaera*
d«n* or Bramali or fra» thè treaaury j&eparvaaat* Sirielem of L&aae
aad aurraney, Baahlngtae 2©« 0» 0*
5* Off!«ar« amtharlaad to «ita«««
fp*yasm iè* -jk ll
V
.. ^
far ^A)m b
mà
«artlfy ragù««ta
tm r
afflaar« authori«ad to witnass «ad eartify raguaata
I ©f Umitad Stata« Sfttisgi Banda» «« «ai forth la Traaawry
Departaant Ciremlar Sa* SSO» £ixth Eavlalaa* as aaemdad» ara haraby
authorisad ta asina«# «ad «artlfy raguaata far «aah sgadanptiom af
fraaaury mata« ivamad nudar ttùaoiroular*
Sueh afflatra includa*
amang ot&ar«# Onitad Stata« pastaaatara» «artaim athar poti affla«
affiatai«# afflaar« of all baaka and tristi aonpaal«« iaearporatad
la tha l&dtad Stata« ar ita organi*«d tarritarl««» imaludiag afflaar«
at branehaa theraof* «ad «aemlaalamad afflaar« of tlia Aray* Stvy«
Marina Carpa «né Coast Guard.
4* fraaaaitatlaa «ad- aurrand«r*~»itet«a hearing proparly exaautad
raqueatc far papatomi must ha praaamtad and aurranderad to aay Federai
Retar*» Sanie ar Bramali ar to thè fraaaury Deparinani» Baehimgtom»
0*0»# at tha «xpamaa «ad ria» af tha amar* Far tha ornar*a pretaatian
nata« «homld ha foranrdad hy ragiatarad mali» If nat praaamtad In
parami«
S* Fortini r«d«igptioa»-~?arti&l aash radauptian af a nata»
eorraapoading ta an authoriaad dasumlsatian» may ha mada In tha
«ama aaaaar a« far M I «asii redemptiam» appraprlata ^angaa baimg
mada in thè regnati far payaamt* in «a«e af partial redewption af
a mota» tha remainder vili ha reletmed In tha tana nana and with tha
asma data af lamia a« tha mata *urrenderei«
w_
«
0* Faymat+^Fnyneat af amy mata» althar at »sturity ar
m
redeaption bafora naturity» «111 ha aade hy amy Fadaral Magarva
Bank ar Branah ar tha Treaeury Departnant» followimg alaaramaa *ith
thè agant af laa«»# aSiieh «111 ha abtained hy tha agami to «Mah tha
nata la «urrendared* Paynaat adii ha mede hy eheak draam to tha
ardar af tha amar* sui mniled ta tha addraaa givam Sa hi« regnati
far pagnaat»
aay ««tat* «r «ift t e « ( « m l and baak) impaaad' by tha
Intarxsal t aramia Coda« ©r law» aaa&datory ay aupolasieiitary
tharata« asaaaaad «gataat tha inaaribod « m r «y hia «»tata*
fha sata» auat ba forwardad t© tha Coilaator at tha risk «fié
axya&aa #f tha amar# «ai« far tha m a r * « prataatlaa« ahaald
ba forwardad by ragi«tarad salí* if not praaaatad la para©»*
v* « m
k
s s a e i m o i At <* m i e s t©
m m o t
!• >3«n«ral♦-»*(«) Aay Xraaaury Sarlaga lata af Sarta# f set
praaaatad i» payaeat af tasa«* «ill ba palé «t mturity, or« «t tha
Option and rafaaat af tha aaaar and «lthout adraaa# natía#* will
ba rada«raid bafar« mmturity, bat tha nota» m y ba radaasad bafora
«aturity aaly durlng and afbar
*«eth ## lamia («a tóeva
m
Wm
f«urth ©atondar month aftar tha
tha fama af aaah sota)*
(b) bayaaat
«t «mtnrity ar «a radtaaptioa bafora mturity atU ba «it «t par
má mmmé
lntaraat to tha saath ©f $*!**&** axaapt« if a sota
la isaaribad la tha naa* af a baak that aoaapt» dataan* dapa«ita,
payoaat at maturity ar «a radasaptiaa bafora aaturlty «111 ba mada
aaly at tha la«©« prtaa» ar par« af tha sata« lamarar, if a «ata
la aatatrad by «ay «ató bask thratsgh farfaitura af a laaa« payaant
will ba nada at tha radasptlai aalua far tha aaath la «hitó »©
aafoirad«
t#
gsacutian af ra^naat far paya«nt»-~Tha «waar la «fea## m m m
tha sota t# la«aribad m m t appamr bafora ©na af tha affiaar» authorl*ad
by tha Saaratary af tha fraatury ta «itn«»« and oartlfy raguasi* far
payaaat« aatabliah hia idamtlty» and ta tha prasaaoa <jf mató affiaar
•i«» bha r*qua*t far p a j a m t apearlas mi tha baak af tha nata, | ¡ p
im
bha addraaa ta «hitó tóaak ta ta ba «aliad*
Aftar tha ragua«!
ftó yayaaat haa boas «a alonad, tha «itaaaaiag affiaar ahauld «©aplata
aad alga tha ©artifioat* »raridad far hia a »a*
qualified i» «x#*«« ef existing oposité«
3«
Secretary sf the Treasury reserve«
the right te reject asy application in whole or in part» and to
refute to issue er permit to he issued hereunder any mete« in say
enee or in s&y Ä * #
or class«# of cate* if he deems such sctiem
to be in the publie interest» and his action in any sash respeet
shall be final*
If an epplieatiea is rejected* Is whole er In part»
any payment reeeived therefor will be refunded*
d*
Delivery of astee»— «ipea aeeeptenee ef full-paid eppl lea tiene*
notes will be duly inscribed m l * unless delivered In person* will
be delivered* at the rieh end expense of the United State# at the
address given by the purchaser* by mall* but only within the united
States* its territories end insular postassions and tho Sonai lone*
lo del ivories elsewhere will be made*
If*
lm
PSLS88Ü1&tl\M JA fAMMt
Of
t*3>M
During mad after the second calendar month after the month
of purchase (as sheen by the
Issue date on each note)* during such
time* and under such rules and regulations so the Oomsissiosor of
Internal &e venue* with tho approval of tho Secretary ef tho Treasury*
shall preooribe* mete# issued hereunder in the m m
ef a taxpayer
{individual* corporation* or other entity) may be presented and
surrendered by such taxpayer* hie agent* or hie estate* to the
Collector of Internal do venue to whom tho tas return is sods* and
will bo resolvable by the Collector at par and aeerued Interest from
the month ef issue to the month* inclusive (but mo svernai beyond
maturity}* in which presented* in payment of any iseeme (current and
bask personal and corporatism taxes* end excess-profits taxes)* or
or State* hot ehall he «aeapt froa *11 taaatiea a w or hereafter
iapeeed e» thè prlnelpal or iatereet thereef hy «ay State* or aay
of thè po«ee«*ieae ef th® United StftlM« er by aay ioeoi taxiag
aatherlty*'
m * racmsE or sotti
1* Officiai Àrtaae|a«»"~Ia additi«» te thè Treaeury PepartMnt*
thè ftésml lesene Bank« end thelr Braaehee ore heroby deeigaated
agende« f»r thè leene
mà
redeaptiea of freaeary Swing« Sete«»
Serio« 0« thè Secreterà ef thè Treaaury* frea tiae to tia*# Im hi«
discreti«»* aay deeigaat« eth«r ageaeie» fer thè ieeoe of thè notes*
or for «teeeptìag
-ikm&rnt
tàerefor* or ter aakl&g pepavate «a
of thè redensii«fc thèreef*
3* Appliestio»« «ad payaeat*~~Apglloetl«a« eill he reeeived
by thè Federai Meeeree Beale end Braaehes* eoi by thè Treeeurer of
thè Unite« Stote«» Seehingtea* D» 0« Seahlng tastitotlese end
ossarity dealer« generaily aoy «uìaolt epplieetiene fer eeeeuat ef
euetenere» hot ealy thè Federai Se«erte ìistfe#' «od their Branche* end
thè freeaury Bepertaeat ere ontnorieed te «et oe officiai agonale«*
The uee of
m
effleiol application fera le deslrable hot net neeeeeery»
Appropriate fora« aay he obteined
lesene
&*nk
m
applicatim te aay Federai
or Branca» er thè ?ree#urer ef thè United State«*
Washington» it 3« Every ep/>lieatioa m e t te aeeempeaieè by payveat
la fall» at par* Aay fora ef exehange» includine personal check«»
vili he aoeepted subjeet te «elleetiea» and should he
drmwn
te thè
order of thè Federai tesene lamk er ef thè freeeuref ef thè United
State«» a« payec» a« thè ea«e aay he» The date fuad* are vede ovali*
ahle ea eelleetioa of exehaage vili severa thè leene date of thè
note«* Asy depeeitery» qualifica, yurcuant to thè provieloae ef
Treeeury Pepartaeat Straniar le* SS» tevteed» a« emended* vili he
peraltted te aake paynent hy eredit far note« applicd fer oa hehalf
ef iteelf er ite euetenere up to «ny «aoeat fer «hlsh It «hall he
fiJTit t« ! t | Ä &«W*tfeS#
foomtb to twilit usait J
ttdrtmmtk ta
seata»* ImsiosSt«'
ftiaotomtfe te rmafeyfeortfe « i l #
i*ÌO «sali month#
I Ä osOb mmtt#
i
ta
M i t
1*40 steh atmÄi*
ïhs t&fcie « g y o & M to i^li *traviar shoss fer s«*«« s# M
tim« far «soi* «onseemtloo «ml«»#** M
ionwtiao*
fra» » m i h ef í*wm t» « 1
of satority# (*} tho « m s t of interest sosrmsi# (t) the pri&oiymi
«üRO%mt of the note «its «morosi interest (eoamiotis*} siéoâ» mué
>
(o) tfe« Sis^Forismte iæwmtmmM ySeM®* 'In so sa«t »toll isterost
mmrm beyemä tim mmtb im vbieh tln» moto io fresemtei im f ^ w i i
of tomo«# «r for roécoftiom fcsfare ssshmrlty «» pr&viémé Im Seetlem f
of this «ireuisr, or teysni it« mstmrity*
Imtormt mili be poli only
«lim the primipml «tesamit«
4#
forms of M o r i gt iOB#^ir»«*ery f#mm§s loto«# sori«« 0# **y
to Imsoribeâ im It# «Mo» «f m
lwMviémX> eoryerstiem# emiosei^orsteá.
««ooolmtioA or »eoisty* or *; fi^aoimpf^ (Imolmdiikg trusts»# vmáer «
éaijr oo totli «ho« trnot vtsoro the not«# would mot to toi« os §erari ty
for the ^orfomoomoo of o imty or oblinoti««)# ofeothor or not the
imoeribo« swmer I« rJfcjoot to tosati«« under tho Isteresi tesone# Seét#
or lev* smoitisisry or «epyìeawtntery thereto*
They m«y elee to is*
«oribe* im the b o o of » tom, elty# ommoty or Stot» or other gmmm*
m i t i body sodi im the m »
of « oortmorotiy# tut moto» in tho m o m of
« partnership aro mot moooptobio im foystoh of t o n # «imm » p*rtm*r~
«hip io mot « tocpsyimg entity M m
the îaterasi tesene# eoi«#
the
moto« will mot b* inserite« i» tho sonos of too or «os» por»omo o»
joint »mors or «ammorsi or in tbs momo of « y o u # off loor» esmther
or not M
eeeerity*
s# trmstoo# M r » tho notos vomit in offset to teli *s
£
* $
>
1
m
ü U « t by tí» Saaratary af tha Traaaury íer radarnption bafera
ruaturity. A H sotas issuad dariag any o » «alendar year «Ia U
eon«tituta * «aparata «aria« ludiente by ti» lattar *B* foHawed
by tha yaar of mturity* At tha tiae of lian tha autharicad
i«*«inc agent wUl inscribe
m
t e faaa of aaah note t e ais» and
adérase af t e evaar* «dXX «atar th© dat© aa af ahiah t e nota
m
ia iataad and w i U imprlnt bit éating ate# {vith eurraat data)*
fba nata» wtU b© issued la t a i M I # « of #100, #600* #1*000*
#$*000* 1X0*000* #100*000* #$00*000 and #1*000*000* Exohaag© af
authorisad daeaainatiana fren higfcer ta lavar* but not frm lotwr
ta fclghar* «ay ba arrancad at tha a m a » af tha agaat tet issued
tha nata#
i#
Aceaptanca far faga# ar Cash R a d a m p t l o n ^ lf inscribe* i»
na» af «h individual* eorporaticn* ar athar antity paying ineoBw,
•atata ar gift tasa# impeaed
wzámr
tha Intamal Sa^anua Ceda* ar Xa»
•aeadatery ar «nppX«Ka&tary terete* tha nata» «1XX ha raaaimhla*
subjeet ta tha prerialaaa af iaetiaa Xf af thi« circular* at par and
«aeread lntsrest, i» payaant af «nah tneewe* estáte ar glft tare»
aeaaaaad agal&at tha
mmmr
ar hi« aatata* Xf aat presentad in peyasiit
af tana#* ar |f not XnaaHhad ia tha nava af a taxpayer UahXa ta
láia abo *®~da##ribad tases* and «ubjaet t# tha provisión* af Saetien y
af thi» circular* tha nota« «UX ha papable at aaturity* ar at tha
e*»ar*t optian and re*ue«t thay sill ha redes»ubi* befare aatvrity at
par and aaaruad iaterest.
$*
lntaraat*^*Intaraat
Oattega lata«* darla« 0 * vill
va
aaah
«acra«
|X*000
aaah
iccaa* aa a graduated aaaia* aa fsllavst
ü
■
principal aaovmt
a w ^ frov
af
t e meatli
af
w
\ .
fltXJI tl«
i|l\ r i p s i
m
Pert
«| ÉÉ3
ÌTWi
a m »
i'ISMCS
OT
iUU
imjiAi®
A
nr
s m n s or t t n
SSMSUST satira iCfgg
Borie« 0
Department Cireuler Io* «SS
Washington, Auguat
17# 194oJ
'iaeal Servi««
Bureau «f thè Patite Beh«
i# a r m i l o or s o m
1« fluì Seeretary «f thè freatnry# j>ur*uac% te thè authority
ef thè Beco«ti Liberty Boni Aet# a* as&aaded#
far «#1« te thè
ef thè United State*# ai far* «a leene ef nate* ef thè United
State«# deeignated freeaury Savia g» Hetee# Seri«« 0# ani eh note«*
if ineeribed ia thè m m m ef a Federai taxpayer# «ili ha recaivable aa
hereiaafter provided at far and aeerued intere et ia payaeat ef iaeeae#
estate «ad gift tare« iapeaad by thè Internai 1evenne Code# or la««
aasndatery er euppl«iM«atary therete*
S*
ih# « a # ef Tree#ury Savia«# Biete«* Serie« 0, l««ued under
Bepartaent Cireuler So# SSS* E n i Bevisi«®* dated Beveaher SO# 1«4S#
le herehy teiednated at thè siete ef hu«iae«e August SI* 194S*
S*
m e M i e ef late« ef Serie« 0 effered hy thi* eiraular «ili
continue eatll teraiimted hy thè Seeretary ef thè freaaury*
li* fissctipficii or i o m
*♦
22S52tiL*w *tr<,BewT Saviaga Sete«* Serie« f* adii ia eaeh
instane# b@ dated a« ef tha fir»t day ef lite ee&th ia vhieh payaent
at
r*
reeeived and ereditad hy aa sgent authori* ed te itane thè
note«,
adii nature three yeare fra® thet date* aad aay net h«
Wm
*■*<, *
W
^
‘^
^
WM
*** 2
in
payaent of taxes, and except far those in tha names of banks that accept
deaand deposita, thè natta of Serica D «ili be redeemable at par and aocrued
interesty either at aaturity or doriag and after thè fourth calendar aonth
after thè month of
im m *
if inscribed in thè nane of a bank that accepts
desand deposita, thè natta «ili be accepted at par and accrued intereet in
payraent of taxes, bui redeeaed for cash at or before maturity cnly at thè
porchase prie®, or par*
The new Treaaury S&vtnga Notes, like thoae of prior serica, «ili be
isaned only by thè Federai Beaerve Banks and Branehes, and thè Treasary
Department, Washington«
The affidai eircuiar, giving full particulars regarding thè notes
■
■
p
m
of thè ne« serica, folleràj
•4Mfis3fl3SI3ïi «regio*
lÄÄAf*
m j
U
x
m.
l ü
§*
fI p
&«eo*«i&iy t f S&# froasarr f h f ü r am&mûmâ toàms tho A ttali# ftf tà# iwar
tîr«&is&fT Sartags I*oi#t» S#fi«« &§. which w ill tooer# «fallah io f# r p«r«h&««
©a
l #. X9hg# m l ih« i«rai# aii«a «f ih* ¿al* o f
Í#íf¡% £*rie* % a i tfe#
é
»
stria#® ,
of 'batía«*# Augwot 3§l
fhe s«®f soi«* of fori#* 3 v ili %* AkML a« of thè- f$r#i r of ih#
MMtife Ih M
p i t e i i
h« Itaotd a i par*
will aste»« toro® r«hr* ttaNNMEttr* sal Sh«r #®jfc
isl« r# *t «no ih# ao iat « t u M m # «s«h maife from »tßtfc
o f im w t ©s a 0?*òg«i*4 m i* » ih #
p t 0 Á I f h a ll io n & i& ritjf
halas oppr«»lmiaÌ2f 1.^0 porotal î##ï* « w tm,
Stet #Wi#rA #f aooroal «aste
laoath «& mete $1*000 priftólpal « a m t of '»#%##* fr^s malte of loia* to
ttonih o f » a la r i ty» fo llo w « î
Z$&.f~ymp p«rl«4te «fio r
ïat«r**t aeorwai
««#1* m a t h por
li J
H r o i i/t 7«#r ********
i f t io 1 i « - ...... .
1 io 1~ % f t year# .»«M*
i-l/2 t# i p««ro ....*.
ài t# M / t
******
2-1/2 io 3 poor# ......
îgac Seoroiary
p
_______________
41,000
prlaolpal with
lai«roti «aerea! ( « â a »
tir#) to ««ft of period
S0*IP* ***♦**#**#
«#•*♦.*■#« « «--#
X#te0 *♦*•*#»*■*•
1•
*• •« *•.*..** *
1 ,teo • •*••» »«»•
«* • * * •*-*.;*•
30
1,010.80
1,018.00
5«,©35.SO
Ifm 2 , à 0
oo nan^aooà that ih« fiotât# darlas lA&Ote ih# «#« tetti#
œy ae% %# rekteiffeid for «rtfc>ftelte#ptfttete ho« Ws»
fro» «la wmtlur io
f<mr matte# from morntà of ioono»
i4ko Sori#* 8* ite# aoo aot#® of Sori«« S' will ho «oolUhlo for te## 1*
piloti of ia@©mo* ««tat* «oft & M too#« U « m w h A hy ih# Xatosml Horoiiu* C&â*
attast&d
abissi ih# «*a«r ®f ih« noi## or tei# miai«*
lf
«ot pro#«ai#&
TREASURY DEPARTMENT
WASHINGTON, D .C .
In fo r m a t io n S e r v i c e
IMMEDIATE RELEASE
Wednesday, August 18, 19¿8
No# S— 829
Secretary of the Treasury Snyder announced today the details of the new
Treasury Savings Notes, Series D, which will become available for purchase
on September 1, 1948, and the termination of the sale of Treasury Savings
Notes, Series C, at the close of business August 31;
The new notes of Series D will be dated as of the first day of the month
in which purchased, will mature three years thereafter, and they'will be issued
at par# Interest on the notes will accrue each month from month of issue, on
a graduated scale, the equivalent yield if held to maturity being approximately
1#40 percent per annum# The amount of accrual each month on each $1,000
principal amount of notes, from month of issue to month of maturity, follows:
Half-year periods after
month of issue____ _____
First 1/2 year
1/2 to 1 year...
1 to 1-1/2 years
11/2 to 2 years
2 to 2-1/2 years
21/2 to 3 years
Interest accrual
each month per
$1,000
$1,000 principal with
interest accrual (cumula—
tive) to end of period
added
10.80
$1 ,004.80
1. 00,
1,010.80
1,018.00
1.20
1.30,
1.40,
1-40.
1,025.80
1 ,034.20
1,042.60
The Secretary also announced that the period during which the new notes
may not be submitted for cash redemption' has been decreased from six months to
four months from month of issue.
Like Series C, the new notes of Series D will be available for use in
payment of income, estate and gift taxes imposed by the Internal Revenue Code
and assessed against the owner of the notes or his estate. If not presented
in payment of taxes, and except for those in the names of banks that accept
demand deposits, the notes of Series D will be redeemable at par and accrued
interest, either at maturity or during and after the fourth calendar month
after the month of issue« If inscribed in the name of a bank that accepts
emand deposits, the notes will be accepted at par and accrued interest in
payment of taxes, but redeemed for cash at or before maturity only at the
purchase price, or par.
The new Treasury Savings Notes, like those of prior series, will be
The official circular, giving full particulars- regarding the notes of
the new series, follows:
UNITED STATES OF AMERICA
TREASURY SAVINGS NOTES
Series D
1948
Department Circular No.« 833
TREASURY DEPARTMENT
OFFICE OF THE SECRETARY,
Washington, August i7, 1948«
Fiscal Service
Bureau of the Public Debt
I« OFFERING OF NOTES
1» The Secretary of the Treasury, pursuant to the authority of the
Second Liberty Bond Act, as amended, offers for sale to the people of the
United States,, at par, an issue of notes of the United States, designated
Treasury Savings Notes, Series D, which notes, if inscribed in the name
of a Federal taxpayer, will be receivable as hereinafter provided at par
and accrued interest in payment of Income, estate and gift taxes imposed
by the Internal Revenue Code, or laws amendatory or supplementary thereto«
2* The sale of Treasury Savings Notes,Series C, issued under
Department Circular No« 696, First Revision, dated November 20, 1943, is
hereby terminated at the close of business August 31, 1948«,
3* The sale of Notes of Series D offered by this circular will
continue until terminated by the Secretary of the Treasury«,
II# DESCRIPTION OF NOTES
1* General««— Treasury Savings Notes, Series D, will in each instance
be dated as of the first day of the month in which payment, at par, is
received and credited by an agent authorized to issue the notes« They
will mature three years from that date, and may. not be called .by the
Secretary of the Treasury for redemption before maturity« All notes
issued during any one calendar year shall constitute a separate series
indicated by the letter !,Dn followed by the year of maturity« At the
time of issue the authorized issuing agent will inscribe on the face of
each note the name and address of the owner, will enter the date as of
which the note is issued and will imprint, his dating stamp (with current
date)» The notes will be issued in denominations of $100, $500, $1,000,
$5,000, $10,000, $100,000, $500,000 and $1,000,000« Exchange of
authorized denominations from higher to lower, but not from lower to
higher, may be arranged at the office of thie agent that issued the note.
2« Acceptance for Taxes or Cash Redemption*— If inscribed in
the name of an individual, corporation, or other entity paying income,
estate or gift taxes imposed under the Internal Revenue Code, or laws
amendatory or supplementary thereto, the notes will be receivable,
subject to the provisions of Section IV of this circular, at par and
accrued interest, in payment of such income, estate or gift taxes
assessed against the owner or his estate« If not presented in payment
of taxes, or if not inscribed in the name of a taxpayer liable to
the above-described taxes, and subject to the provisions of Section V
of this circular, the notes will be payable at maturity, or at the
ownerfs option and request they will be redeemable before maturity at
par and accrued interest«
3« Interest«— Interest on each $1,000 principal amount of
Savings Notes, Series D, will accrue each month from the month of
issue, on a graduated scale, as follows:
First to Sixth months, inclusive— --- **--- -- ----$0*80 each month
Seventh to Twelfth months, inclusive-'----------- 1«00 each month
Thirteenth to Eighteenth months, inclusive-------1*20 each month
Nineteenth to Twenty—fourth months, inclusive— — 1«30 each month
Twenty—fifth to Thirty-sixth months, inclusive—
1*4-0 each month
The table appended to this circular shows for notes of each denomina
tion, for each consecutive calendar month from month of issue to month
of maturity, (a) the amount of interest accrual', (b) the principal
amount of the note with accrued interest (cumulative) added, and
(c) the approximate investment yields« In no case shall interest
accrue beyond the month in which the note is presented in payment
of taxes, or for redemption before maturity as provided in Section V
of this circular, or beyond its maturity® Interest will be paid only
with the principal amount®
4• Forms of Inscription«— Treasury Savings Notes, Series
may
be inscribed in the name of an individual, corporation, unincorporated
association or society, or a fiduciary (including trustees under a
duly established trust where the notes would not be held as security
for the performance of a duty or obligation), whether or not the
inscribed owner is subject to taxation under the Internal Revenue Code
or laws amendatory or supplementary thereto* They may also be in
scribed in the name of a town, city, county or State or other govern
mental body and in the name of a partnership, but notes in the name of
a partnership are-not acceptable in payment of taxes, since a partner
ship is not a taxpaying entity under the Internal Revenue Code* The
notes will not be inscribed in the names of two or more persons as
joint owners or coowners; or in the name of a public officer, "whether
or not named as trustee, where the notes would in effect be held as
security®
- 3 5* Nontransferability»— The notes may not be transferred
in ordinary course; except that (1) if inscribed in the name of
a married' man they be reissued in the name of his -wife, or if
inscribed in the name of a married woman they may be reissued in
the name of her husband, upon request of the person in whose name
the notes are inscribed and the surrender of the notes to the
agent that issued them; (2) if inscribed in the name of a corpora
tion owning more than 50 percent of the stock, with voting power,
of another corporation, the notes may be reissued in the name of
the subsidiary upon request of the corporation and surrender of
the notes to the agent that issued them; (3) upon the death or
disability of an individual inscribed owner or the dissolution,
consolidation or merger of a corporation or unincorporated association
named as owner, reissue or payment may be made in accordance with
Section VI hereof; and (4) payment but not reissue, may be made as
a result of legal proceedings as set forth in said Section VI.
The notes may not be hypothecated and no attempted hypothecation or
pledge as security will be recognized by the Treasury Department:
Provided, however, that the notes may be pledged as collateral for
loans from banking institutions and if title thereto is acquired
by a bank because of the failure of a loan to be paid, the notes
will be redeemed at par and accrued interest to the month in which
acquired on surrender to the agent who issued them, accompanied by
proof of the date of acquisition and by request of the pledgee under
power of attorney given by the pledgor in whose name the notes are
inscribed. The notes will not be transferred to a pledgee. The
notes will not be acceptable to secure deposits of public moneys.
6* Taxation.— Income derived from the notes shall be subject
to all taxes imposed under the Internal Revenue Code or laws
amendatory or supplementary thereto. The notes shall be subject
to estate, inheritance, gift or other excise taxes, Yvhether 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.
III. PURCHASE OF NOTES
1* Official Agencies.— In addition to the Treasury Department,
the Federal Reserve Banks and their Branches are hereby designated
agencies for the issue and redemption of Treasury Savings Notes,
Series D. The Secretary of the Treasury, frcm time to time, in his
discretion, may designate other agencies for the issue of the notes,
Or for accepting applications therefor, or for making payments on
account of the redemption thereof.
2. Applications and payment,»--. Applications will be received
by the Federal Reserve Banks and; Branches, and by the Treasurer of
the United States, Washington, D; C. Banking institutions and
security dealers generally may submit applications for account of
customers, but only the Federal Reserve Banks and their Branches and
the Treasury Department are authorized to act as official agencies.
The use of an official application form is desirable but not necessary.
Appropriate forms may be obtained! on application to a n y Federal
Reserve Bank or Branch, or the Treasurer of the United States,
Washington, D. C. Avery application must be accompanied by payment
in full, at par. Any form of exchange, including personal checks,
will be accepted subject to collection, and should be drawn to the
order of the Federal Reserve Bank or of the Treasurer of the United
States, as payee, as the case may be. The date funds are made avail
able on collection of exchange will govern the issue date of the
notes. Any depositary, qualified pursuant to the provisions of
Treasury Department Circular No, 92, Revised, as amended, will be
permitted to make payment by credit for notes applied for on behalf
of itself or its customers up to any amount for which it shall be
qualified in excess of existing deposits.
3. Reservations .— The Secretary of the Treasury reserves
the right to reject any application in whole or in part, and to
refuse to issue or permit to be issued hereunder any notes in any
case or in any class or classes of cases if he deems such action
to be in the public interest, and his action in any such respect
shall be final. If an application is rejected, in whole or in part,
any payment received therefor will be refunded.
4-* Delivery of notes •-’-Upon acceptance of full—paid applications,
notes will be duly inscribed and, unless delivered in person, will
be delivered, at the risk and expense of the United States at the
address given by the purchaser, by mail, but only within the United
States, its territories and insular possessions and the Canal Zone.
No deliveries elsewhere will be made.
IV.
PRESENTATION IN P A t e N T OP „TAXES
1.
During and after the second calendar month after the month
of purchase (as shown by the issue date on each note), during such
time, and under such rules and regulations as the Commissioner of
Internal Revenue , with the approval of the Secretary of the Treasury,
shall prescribe, notes issued hereunder in the name of a taxpayer
(individual, corporation, or other entity) may be presented and
surrendered by such taxpayer, his agent, or his estate, to the
Collector of Internal Revenue to whom the tax return is made, and
will be receivable by the Collector at par and accrued interest from
the month of issue to the month, inclusive (but no accrual beyond
maturity;, in which presented, in payment of any income (current and
back personal and corporation taxes, and excess-profits taxes), or
- 5 -
any estate or gift taxes (current and back)imposed by the
Internal Revenue Code, or laws amendatory or supplemental
thereto, assessed against the inscribed owner or his estate.
The notes must be forwarded to the Collector at the risk and
expense of the owner, and,-for the owner's protection, should
be forwarded by registered mail, if not presented in person.
V.
CASH redemption ; AT OR PRIOR TO MATURITY
1* Generali.— (a) Any Treasury Savings Note of Series D not
presented in payment of taxes, will be paid at maturity, or, at the
option and request of the owner and without advance notice, will
be redeemed before maturity, but the notes may be redeemed before
maturity only during and after the fourth calendar month after the
month of issue (as shown on the face of each note), (b) Payment
at maturity or on redemption before maturity will be made at par
and accrued interest to the month of payment, except, if a note
is inscribed in the name of a bank that accepts demand deposits,
payment at maturity or on redemption before maturity will be made
only at the issue price, or par, of the note. However, if a note
is acquired by any such bank through forfeiture of a loan, payment
will be made at the redemption value for the month in which so
acquired.
2. Execution of request for payment.— The owner in -viiose name
the note Is inscribed must appear before one of the officers' authorized
by the Secretary of the Treasury to witness and certify requests for
payment, establish his identity, and in the presence of such officer
sign the request for payment appearing on the back of the note, add
ing the address to which check is to be mailed. After the request
for payment has been so signed, the witnessing officer should complete
and sign the certificate provided for his use.
3. Officers authorized to witness and certify requests for
payment.— All officers authorized to witness and certify requests
for payment of United States Savings Bonds, as set forth in Treasury
Department Circular No. 530, Sixth Revision, as amended, are hereby
authorized to witness and certify requests for cash redemption of
Treasury notes issued under this circular. Such officers include,
among others, United States postmasters, certain other post office
officials, officers of all banks and trust companies incorporated
in the United States or its organized territories, including officers
at branches thereof, and commissioned officers of the Army, Navy,
Marine Corps and Coast Guard.
4-* Presentation and
requests for payment must
Reserve .Bank or Branch or
D. C*, at the expense and
notes should be forwarded
person.
surrender»— Notes bearing properly executed
be presented and surrendered to any Federal
to the Treasury Department, Washington,
risk of the owner. For the owner's protection,
by registered mail, if not presented in
- 6 5o Partial redemption®— Partial cash redemption of a note,
corresponding to an authorized denomination, may be made in the
same manner as for full cash redemption, appropriate changes being
made in the request for payment,, In case of partial redemption of
a note, the remainder will be reissued in the same name and with the
same date of -issue as the note surrendered,,
6 ® Payment®— Payment of any note, either at maturity or on
redemption before maturity, will be made by any Federal Reserve
Bank or Branch or the Treasury Department, following clearance with
the agent of issue, which will be obtained by the agent to which the
note is surrendered® Payment will be made by check drawn to the
order of the owner, and mailed to the address given in his request
for payment'®
VI, PAYMENT OR REISSUE TO OTHER THAN INSCRIBED OWNER
lo Death or dis ability „— In case of the death or disability
of an individual owner and the notes are not to be presented in
payment of taxes, payment will be made to the duly constituted
representative of his estate, or they may be reissued to one or
more of his heirs or legatees upon satisfactory proof of theirright| but no reissue will be made in two names jointly or as
coowners0
Dissolution or merger of corporations« etc®— -If a
corporation or unincorporated body, in whose name notes are inscribed,
is dissolved, consolidated, merged or otherwise changes its organiza
tion, the notes may be paid, to, or reissued in the name of those
persons or organizations lawfully entitled to the assets of such
corporation or body by reason of such changes in organization®
3o Bankruptcy0— If an inscribed o?zner of notes is declared
bankrupt or insolvent, payment, but not reissue, will be made to
the duly qualified trustee, receiver or similar representative if
the notes are submitted with satisfactory proof of his appointment
and qualification®
4-o Creditors1 Rights0——Payment, but not reissue, Till be
made as a result of judicial proceedings in a court of competent
jurisdiction, if the notes are submitted with proper proof of such
proceedings and their finality®
5o Instructions and information®— »Before executing the request
Tor payment or submitting the notes under the provisions of this
section, instructions should be obtained from a Federal Reserve
Bank or Branch or from the Treasury Department, Division of Loans
and Currency, Washington 25, D® C®
~ 7 ~
v n GENERAL PROVISIONS
lo Regulations©-—Except as provided in this circular, the
notes issued hereunder will be subject to the general regulations
of the Treasury Department, now or hereafter prescribed, governing
bonds and notes of the United States; the regulations currently in
force are contained in Department Circular No® 300, as amended«,
2© loss, Theft or Destruction©— In case of the loss, theft
or destruction of a savings note immediate notice (which should
include a full description of the note) should be given the agency
which issued the note and instructions should be requested as to
the procedure necessary to secure a duplicate©
3o Fiscal Agents©— ^Federal Reserve Sanies and their Branches,
as fiscal agents of the United States, are authorized to perform such
services or acts as may be appropriate and necessary under the
provisions of this circular and under any instructions given by the
Secretary of the Treasury, and they may issue interim receipts
pending delivery of the definitive notes©
Uo Amendments©-— The Secretary of the Treasury may at any time
or from time to time supplement or amend the terms of this circular,
or of any amendments or supplements thereto, and may at any time or
from time to time prescribe amendatory rules and regulations govern
ing the offering of the notes, information as to which will promptly
be furnished to the Federal Reserve Banks0
JOHN W, SNIDER
Secretary of the Treasury
Aaount of Interest accrual each
aonth after aonth of issue
$<500.00 $ 1 , 000.00 $5,000.00 $10,000.00 $100,000.00
Q
8
Q
O
$100.00
3
Par value (issue price
during aonth of issue)
4*
Treasury Sarins* lote* - Series D
Table of Tax-Payment or Redemption Value* and Investment Yield*
The table below show* for each aonth from date of Issue to date of maturity the amount of Interest accrual; the principal amount with accrued interest
added, for note* of each denomination; the approximate investment yield on the par aaount from issue date to the beginning of each aonth following the aonth
of Issue; and the approximate Investment yield on the current redemption value froa the beginning of the aonth indicated to the aonth of maturity.
Tax-payment or redemption values during each at ntKJ}-period after month
Interest accrues at rr.te of $0.80 per aonth
per $1,000 par aaount)
firs t month... . . . . . . . . . . . . . . . . .
Seccod aonth...
Third aonth.•••••*..
fourth aonth...
fifth aonth..........................
Sixth aonth........ ..................
Interest accrues at rate ef $1.00 per aonth
per $1,000 par aaouatt
Seventh aonth........
lighth aenth.••...••••••...............
H a t h aonth..........................
Tenth aonth......................... .
Heventh a o a th .....^ ... . . . . . . . . . . . . . . . .
Twelfth aonth......*•»«••••••..••••••••
Interest accrues at rate ef $1.20 per aenth
per $1,000 par eaouat)
Thirteenth a o n t h . . . . . . . . .... .
fourteenth aonth.
fifteenth aenth................ ......
Sixteenth aonth......................
Seventeenth a o n th ..............
Eighteenth a e n t h . . . . . . . . . . . . . . . .............
Interest accrue* at rate ef $1*30 per aonth
ptfr $1,000 par aaeuntt
Nineteenth aonth.......................
Twentieth aonth..................... .
Twenty-first aonth.....••«•••••••••••••
Twenty— second aonth........ ......... .
Twenty-third aonth....................
Twenty-fourth aonth....................
Interest accrues at rate ef $1.1(0 per aonth
per $1,000 par aaeuntt
%eatyh.fifth aonth...•••..•••
Twenty-sixth aonth.....••••••••........
Twenty—seventh a o n t h . . . . . . . . . . . . . . . . . . .
Twenty-eighth aonth...................
Twenty-ninth aonth..••••••••
Thirtieth a o n t h . .........
Thirty-first month.....................
Thirty-second aonth...,,.,.,,,,,,,,,,,.
Thirtja»thlrd month...,..,,,,,,,,,,,,,,.
Thirty-fourth month.
Thirty— fifth month..,,.,,,.,.,.,.,.....
KATITHITY
1
a/ i.* o
$ 1 0 0 .0 8
$ 5 0 0 .* 0
1 0 0 .1 6
5 0 0 .8 0
1 ,0 0 1 .6 0
$ 10 , 0 0 8 .0 0 $ 100 , 0 8 0 .0 0 $ 5 0 0 , 4 0 0 .0 0 $1 , 0 0 0 , 8 0 0 .0 0
5 , 0 0 8 .0 0 1 0 , 0 1 6 . 0 0 1 0 0 , 1 6 0 . 0 0 5 0 0 , 8 0 0 . 0 0 1 , 0 0 1 , 6 0 0 . 0 0
1 0 0 .2 *
IO O .3 2
1 0 0 .W
1 0 0 . hg
5 0 1 .2 0
5 0 1 .6 0
5 0 2 .0 0
5 0 2 .* 0
1 ,0 0 2 .* 0
1 ,0 0 3 .2 0
1 ,0 0 * .0 0
1 ,0 0 * .2 0
5 ,0 1 2 .0 0
5 ,0 1 6 .0 0
5 ,0 » .0 0
5 ,0 2 * .0 0
1 0 ,0 2 * .0 0
1 0 ,0 3 2 .0 0
1 0 ,0 * 0 .0 0
1 0 ,0 * 8 .0 0
1 0 0 ,2 * 0 .0 0
io o ,3 » .o o
1 0 0 ,* 0 0 .0 0
1 0 0 ,* » . 0 0
3 0 1 ,2 0 0 .0 0
5 0 1 ,6 0 0 .0 0
5 0 2 ,0 0 0 .0 0
5 0 2 | * 0 0 .0 0
1 ,0 0 2 ,* 0 0 .0 0
1 ,0 0 3 ,2 0 0 .0 0
1 , 00 * , 6 0 % 0 0
1 , 0 0 4 , 8 0 0 .0 0
1 0 0 .5 8
1 0 0 .6 8
5 0 2 .9 0
100 .7 8
503.90
5 0 * .4 0
5 0 * .9 0
505 . W
1 ,0 0 5 .8 0
1 ,0 0 6 .»
1 ,0 0 7 .8 0
1 , 0 0 8 .8 0
1, 009. »
1 ,0 1 0 .8 6
5 , 0 2 9 .0 0
5 , 0 3 4 .0 0
5 , 0 3 9 .0 0
5 , 0 4 4 .0 0
5 ,0 * 9 .0 0
5 , 05 * . o o
1 0 ,0 5 8 .0 0
1 0 ,0 6 8 .0 0
1 0 ,0 7 8 .0 0
10 , 0 8 8 .0 0
1 0 ,0 9 8 .0 0
10 , 108.00
1 0 0 ,5 * 0 .0 0
100 , 680.00
1 0 0 ,7 » . 00
1 0 0 , 8 8 0 .0 0
1 0 0 ,9 » .0 0
101 , 0 8 0 .0 0
5 0 2 ,9 0 0 .0 0
5 0 3 ,* 0 0 .0 0
5 0 3 ,9 0 0 .0 0
5 0 * ,* 0 0 .0 0
5 0 * ,9 0 0 .0 0
5 0 5 ,* 0 0 .0 0
1 ,0 0 5 ,8 0 0 .0 0
1 ,0 0 6 ,8 0 0 .0 0
1 ,0 0 7 ,8 0 0 .0 0
1 , 0 0 8 , 8 0 0 .0 0
1 , 0 0 9 , 8 0 0 .0 0
1 , 0 1 0 , 8 0 0 .0 0
1 ,0 1 2 .0 0
1 ,0 1 3 .»
1 ,0 1 * .* 0
1 , 0 1 5 .6 0
l!0 l6 .»
1 , 0 1 8 .0 0
5 ,0 6 0 .0 0
5 ,0 6 6 .0 0
5 , 0 7 2 .0 0
5 , 0 7 8 .0 0
5 ) o * .0 0
5 , 0 9 0 .0 0
1 0 ,1 » .0 0
1 0 ,1 3 2 .0 0
10 , 1* 4 .0 0
1 0 ,1 5 6 .0 0
1 0 ) 1 6 8 .0 0
1 0 ,1 » .0 0
1 0 1 ,2 0 0 .0 0
1 0 1 , 3 » .o o
1 M , 4 * 0 .0 0
1 0 1 ,5 6 0 .0 0
101 ) 680 .0 0
101 , 8 0 0 .0 0
5 0 6 ,0 0 0 .0 0
5 0 6 ,6 0 0 .0 0
5 0 7 ,2 0 0 .0 0
5 0 7 ,8 0 0 .0 0
508 , 4 0 0 .0 0
5 0 9 ) 0 0 0 .0 0
1 ,0 1 2 ,0 0 0 .0 0
1 , 0 1 3 , 2 0 0 .0 0
1 , 01 * , 4 0 0 .0 0
1 , 0 1 5 , 600 .CO
1 ) 0 1 6 ) 8 0 0 .0 0
1 , 0 1 8 , 0 0 0 .0 0
1 , 0 1 9 .3 6
i) o » .e o
1 ,0 2 1 .9 0
1 ,0 2 3 .»
5 , 0 9 6 .5 0
5 , 1 0 3 .0 0
5 , 109 .5 0
5 , 1 1 6 .0 0
1 0 ,1 9 3 .0 0
10) » 6 .0 0
1 0 ,2 1 9 .0 0
1 0 ,2 3 2 .0 0
1 0 1 ,9 3 0 .0 0
5 0 9 ,6 9 0 .0 0
5 1 0 ) 3 6 0 .0 0
5 1 0 ,9 5 0 .0 0
5 1 1 ,6 0 0 .0 0
1 , 0 1 9 , 300 .0 0
1 ) 0 » , 6 Ö 0 .0 0
1 ,0 2 1 .9 0 0 * 0 0
1 ,0 2 3 ,2 0 0 .0 0
1 ,0 2 * ,2 9 0 .0 5
1 ) 0 2 5 ) 8 0 0 .0 0
1 0 0 .8 8
1 0 0 .5 8
1 0 1 .0 8
5 0 3 .* 0
1 0 1 .2 0
IO I .3 2
1 0 1 .* U
I O I .5 6
1 0 1 .6 8
5 0 6 .0 0
5 0 6 .6 0
1 0 1 .8 0
509 .0 0
1 0 1 .9 3
1 0 2 .0 6
5 0 9 .6 5
9 0 7 .2 0
507 .S O
5 0 8 .* O
510.30
510.®5
$ 1 , 0 0 0 .8 0 $ 5 , 0 0 4 .0 0
1 0 2 .1 9
102*32
1 0 2 .* 5
1 0 2 .5 8
5 I I .6 O
1 0 2 .7 2
5 1 3 .6 0
1 , 027 . »
1 0 2 .8 6
1 0 3 .0 0
1 0 3 .1 *
5 1 * .3 0
515*00
1 ,0 2 8 .6 0
1 ,0 3 0 .0 0
1 , 0 3 1 .4 0
ha
5 , 1 3 6 .0 0
5 , 1 * 3 .0 0
1 0 ,2 7 2 .0 0
1 0 ,3 0 0 .0 0
io ,3 i* « o o
10 , 3 2 8 .0 0
1 0 ) 3 * 2 .0 0
10 , 3 5 6 .0 0
1 0 ,3 7 0 .0 0
1 0 3 8 * .0 0
1 0 , 398 .0 0
1 0 ,* 1 2 .0 0
1 0 , 1 ( 2 6 .0 0
1 0 4 .1 2
5 2 0 .6 0
1 ,0 * 1 .»
5 ,1 5 0 .0 0
5 , 1 5 7 .0 0
5 , 1 6 * .0 0
5 I1 7 I .O O
5 ,1 7 8 .0 0
5 ,1 8 5 .0 0
5 ,1 9 2 .0 0
5 ,1 9 9 .0 0
5 , » 6 .0 0
1 0 4 .? 6
5 2 1 .3 0
1 ,0 * 2 .6 0
5 ,2 1 3 .0 0
103.28
1 0 3 .* 2
1 0 3 .5 6
1 0 3 .7 0
1 0 3 .8 *
1 0 3 .9 s
5 1 5 .7 0
515 .UO
5 1 7 .I O
5 1 7 .8 0
5 1 8 .5 0
5 1 9 .2 0
5 1 9 .9 0
1 0 2 , 0 6 0 .0 0
1 0 2 ,1 9 0 .0 0
1 0 2 ,3 » .0 0
i;Ü|:gg B;§S:88 f i M & 8 ii:ISg:88
1:0 32 .8 0
l ’, 0 3 * . 2 0
1 ,0 3 5 .6 0
1 ,0 3 7 .0 0
1 , 0 3 8 .4 0
1,0 39 .8 0
10 , 286.00
5 1 3 ,6 0 0 .0 0
1 ,0 2 7 ,2 0 0 .0 0
514 , 3 0 0 .0 0
1 0 3 ) * » .0 0
1 0 3 ,5 6 0 .0 0
1 0 3 ,7 0 0 .0 0
1 0 3 ,8 * 0 .0 0
1 0 3 , 9 8 0 .0 0
1 0 * ,1 » .0 0
5 1 5 ,0 0 0 .0 0
5 1 5 ,7 0 0 .0 0
5 1 6 .4 0 0 .0 0
5 1 7 )1 0 0 .0 0
5 1 7 ,8 0 0 .0 0
5 1 8 ,5 0 0 .0 0
5 1 9 ,2 0 0 .0 0
5 1 9 ,9 0 0 .0 0
5 » , 6 0 0 .0 0
1 ,0 2 8 ,6 0 0 .0 0
1 ,0 3 0 ,0 0 0 .0 0
1 , 0 3 1 , 4 0 0 .0 0
1 , 0 3 2 ) 800 .0 0
1 )0 3 4 )2 0 0 .0 0
1 , 0 3 5 , 6 0 0 .0 0
1 ,0 3 7 ,0 0 0 .0 0
1 , 0 3 8 , 4 0 0 .0 0
1 , 0 3 9 , 8 0 0 .0 0
1 ,0 * 1 ,2 0 0 .0 0
1 0 * ,2 6 0 .0 0
5 2 1 ,3 0 0 .0 0
1 ,0 * 2 ,6 0 0 .0 0
1 0 2 ,7 » .0 0
1 0 2 ,8 6 0 .0 0
1 0 3 ,0 0 0 .0 0
1 0 3 ) 140.00
103 , 280.00
.0 6
l.Ul
.9 6
.9 6
.96
.9 8
.9 8
1 .4 2
1 .4 4
i .* 5
1 -U 7
.9 9
1.U9
1 .0 2
1 .5 0
1 .5 1
1-53
1 .0 4
1 .0 5
1 .0 7
1 .0 8
1 .1 0
1 .1 1
I .I 5
l.lg
1 is
1 .2 1
1 .2 3
1 .2 *
1 .2 6
p p n x site investment yield for entire period froa issuance to maturity.
1.U8
1.5*
1 .5 5
1 .5 6
1 .5 7
1-57
1 .5 s
1:8
1:8
1 .6 l
1 . 6?
*:B
1 .2 9
1 .3 1
1 .3 2
1 .3 3
1 lU
i '.35
l.p
1-37
1 .3 8
1.38
1.39
1 .6 3
i-f3
1 .6 3
1 .6 3
i'£
1.62
1.62
1.62
1 .6 2
1 .6 2
1 .U 0
Not acceptable in payment of taxes until during and after the aecond calendar month after the month of issue,
and not redeemable for
during and after the fourth calendar aonth after the month of issue,
u
Approximate: Approximate
lnvestaent
Investment
yield on tyleld on current
$1,000,000.00
par aaount : tax-payment or
froa Issue : redemption
date to
values froa
beginning of : beginning of
each
aonthly
:
each
Monthly
of Issue 1 /
period : period to
thereafter_s__ matu rity__
acent.
Percent
caah until
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 VALUEi Provided, howfver, 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?
Country of Origin
United Kingdom....
Canada............
France............
British India.....
Netherlands.......
Switzerland.......
Belgium...........
J apan.............
China..............
Egypt.............
Cuba..............
Germany............
Italy.............
Totals
if
Imports
Established : Total imports ^Established!
Sept.
20,
1947,t
33-1/3#
of(Sept.
20, 1947,
: TOTAL QUOTA '
toAug. 7, 19)48 ITotal Quota! to Aug. 7.
1/
1958
1,441,152
4,323,457
19,703
19,703
■239,690
1 7 5 ,2 6 6
75,807
227,420
69,627 i
69,627
22,747
68,240
14,796
44,388
12,853
38,559
341,535
17,322
."
8,135
6,544 !
Ï
N
|
25,443
76,329
7,088
21,263 |
5,482,509 |
2614,596
Included in total imports, column 2.
-oOo-
1,599,886
19 ,7 0 3
!
Hi
FOR r.l/EDIATE RELEASE
August IT, 1948
00*
___
5
- 1
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 August 7,
1 9 4 B ^ ^ w ’follows'«
COTTON (other than linters)
(In pounds)
Country of
Origin
Under 1-1/8” other
t han r ough or har sh
under 3/4"
Established; imports Sept.
Quota
20, 1947, to
August 7* ,1948
Egypt and the
Anglo-Bgyptian
783,816
Sudan....!..... .
'247;952
Peru..........
British ’India!, . 2,003,483
China............ 1,370,791
Mexico..... .
8,883^259
Brazil...........
618,723
Union of Soviet
Socialist Republies.....^.......
475,124
Argentina.^.
5,203
•237
Haiti............ .
Ecuador.E E E E * .
9,333
752
Honduras.........
871
Paraguay. 1*
Colombia.........
124
Iraq.... .......
195
British ’East
2,240
Africa...........
Net herland s *East
71,383
Indies...........
Barbados.........
Other British’‘
21>321
West Indies l/...
Nigeria..........
5,377
Other British
West Africa 2/...
16,004
Other French
689
Africa 3/« *.....
Algeria and Tunisia
-
21*7,952
20,422
1-1/8” or more
but less than
1-11/16” V
Imports Sept.
20, 1947, to
Aug. 7, 1948
Less than 3/4 ■
harsh or rough 5/
Imports Sept. 20,
1947, to August
7. 191*8.
1)5,665,558 (l*a 1
1 ,903,999
8,883,259
618,723
-
473,124
17 7 ,91+9
1+3,235,563
-
--
» ...
|
10,21*5,1)80
1*3,235,563 .
1*7 ,71*7,506(l)a
m m
,
Jamaica,
Trinidad,
and
Tobago.
/ 1/ Other than Barbados, Bermuda
* 2/ Other than Gold Coast and Ni gerla.
3/ Other than Algeria, Tunis i%. and Madagascar.
%/ The quota of 1+5,856,1)20 pounds established by the President's Procla
mation No. 2351 was filled on September 22, 191)7•
.
h/a This figure includes 2,091,086 pounds of Egyptian' cotton charged durins
“
the period July 20 to August 7, 191)8, to the additional quota provided
14,516,882
5/
J f e J S w t e s-
110 • 2800 •.........
. . .
TREASURY DE^tRTHENT
Washington
v
'
n
,
.
vW
,
r
p
*
;
•
■
T
i
;
»
\
b
t
?
T ‘...
•*i -*.*< i' jj&j*iUij
i?forinasdayT August ,18 r 1948
No. S-830
The Bureau of Customs announced today that preliminary data on imports of
co tto n and cotton Y^aste chargeable to the quotas established by the Presidents
p ro cla m a tio n of September 5, 1939, as amended, for the period September 20, 194-7,
to August 7, 194-8, inclusive, are as followsi
COTTON (other than linters)
(in pounds)
C o u n ty of
Ori°in
_____________
s
Under l-l/S" other
t 1-1/8" or more
:
,„
:
than rough or harsh
: but less than
ieSf ^ m n
?/
»
. . under 3/4"
, 1-11/16" V
ttersh °r rough &
iEstaolished slmports Sept. iImports Sept. 20, : Imports Sept,. 20,
f Quota
520, 1947, to »1947, to August 7,: 1947, to August 7,
» _____
»August 7, 1948?
1 9 4 8 _______ :
1948
_____
Egypt and the
Anglo-Egyptian
783,816
S u d a n .,,,,,.,..*
P e r u . , ,,,...
247,952
British In d ia ...
2,003,433
China ^ ... *.*.*.* ••« 1,370,791
Mexico
8,883,259
B r a z i l ...
618,723
Union of Soviet
Socialist Repub—
I j-CS, •, » •••••• ;
475,124
Argentina
5,203
Haiti .
.. .. T
237 ’
Ecuador...........
9,333
H onduras........
752
:Paraguay. . . . . . . . *.r "
871
Colombia
124
Iraq. . . . . . . . . . . . . . .
195
British East ' •
Africa.. 1. 1i Tf■ f
2.240
Netherlands East
Indie s , . . . . . . . .
71,388
—.
Barbados. . . . . . . . .
Other British
Nest Indies l/ „t
21,321
Nigeriar. . . A (t*t|
5,377
Other B ritish
Nest Indies 2 / mm
16,004
Other French
Africa ¿¿j
3/ «•#••••
689
Algeria and Tunisia:
A»■
w
247,952
20,422
*»
8,383,259
618,723
475,124
45,665,558(4a)
1,903,999
—
—
w
43,235,563
177,949
14,516,882
10,245,480
47,747,506(4a)
43,235,563
Other than Barbados, Berrauda, Jamaica, Trinidad, and Tobago.
Other than Gold Coast and Nigeria.
Other than Algeria, Tunisia, and Madagascar..
The quota of 45,656,420 pounds established by the President*s Proclamation
/
2351 was filled on September 22, 1947 ,
4/a ‘
This figure includes 2,091,086 pounds of Egyptian cotton charged during the
period July 20 to August 7, 1948. to the additional quota provided in the
President*s Proclamation No. 2800.
y Established quota 70,000,000.
y
y.
¿j
y
w 2 w,
COTTON WASTES
(In pounds)
COTTON CARD STRIPS made from cotton having a staple of less than 1-3/16 inches
in length, COMSER 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:
Imports
Established :
Established : Total imports
:Sept*
20,1947
Sept,
20,
1947,
:
33-1/3$
of
TOTAL
QUOTA
:
Country of Origin ;
•
•
:
to
Aug.7,
2/
:Total
Quota
to
Aug,
7,
1948
*
1948
19,703
1,441,152
19,703
4,323,457
United Kingdom.....
—►;
—
■
175,266
Canada«
239,690
y
m
75,807
227,420
France.•••••••,. *..«*
§i
69,627
69,627
British India.... ..
22,747
68,240
Netherlands •...... .
14,796
44,388
Switzerland.... ..
12,853
Belgium........... .
38,559
—
Japan.
341,535
— •
17,322
China.
—
Egypt,..,.....
8,135
Cuba* ...... .
6,544
76,329
25,443
Germany............
7,088
Italy...............
21,263
1,599,886
19,703
264,596
Totals
5,482,509
1/ Included in total imports,.column 2,
— 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 i*2 and
117 (a) (1) of the Internal Revenue Code* as amended by Section 115> of the Reve
nue Act of
19bl,
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
f-3 /
- 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
August 26, 19]±8
, in cash or other immediately avail-
able funds or in a like face amount of Treasury bills maturing November 26, 19U8.
' S w
.
,
... . .
i
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
hereafter imposed on the principal or interest thereof by any State, or ary of the
possessions of the United States, or by any local taxing authority.
For purposes
TREASURY DEPARTMENT
Washington
B * RELEASE, MORNING NEWSPAPERS,
Friday, August 20, 19U8._______
The Secretary of the Treasury, by this public notice, invites tenders for
.,000,000,000
, or thereabouts, of
92
in exchange for Treasury bills maturing
-day Treasury bills, for cash and
August 26, 19U8
, 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
November 26, 19U8
August 26, 1914-8
, 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, $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., E a s t e r n t i m e , |fondav. August 2}. 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, with not more
than three decimals, e. g., 99.92f>.
Fractions may not be used.
It is urged
that tenders be made on the printed forms and forwarded in the special envelopes
’•V
which will be supplied by Federal Reserve Banks or Branches on application
therefor.
Tenders m i l 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
r
TREASURY DEPARTMENT
In fo rm a tio n S e r v i c e
RELEASE, MORNING WMVS&EfîS,
Friday« August 20, 19 A8*
WASHINGTON, D .C .
No* S- 83I
The Secretary of the Treasury, by this public notice* invites tenders
for $1,000,000,000* or thereabouts, of 92-day Treasury bills, for cash and
in exchange for Treasury bills maturing August 26, 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 August 26, 1948 , and will
mature November 26,. 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)
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,
August 23, 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 hnd
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 sce
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
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 26, 1943, in cash or other immediately available funds or in a like
face amount of Treasury bills maturing November 26, 1948# Cash and exchange
tenders will receive equal treatment. Cash adjustments will be made for
ifferences 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"Spécial 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 taxing authority* «For purposes of taxation
,,
the;.amount; bf‘discount>;àt 'which Treasury bills are originally sold by the
United States Shall be considered to be interest# Under Sentions 4-2 .and
117 (a) (1) of the internal Revenue Code, as amended by Section 115 of the
Rhveque 'Apt of -19.41* the amount of discount at which bills issued hereunder
are sold shall not be considered to accrue until such -bills shall be SQld, ^
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
t a x ’return only tfhe 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 iflade; 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
subject of taxation.
Mr. Shere is a member of the American Economic Association,
American Statisticai Association, Internatiohsl EiscaX Association
National Tax Association, and the Tax Institute*
d X
S'
L S
Zf ¡cf
- s z x
i
Secretary ^Snyder announced today that Louis Shere has resigned
as Director of Tax Research for the Treasury Department to become
Professor of Economics and Director of Tax Research at Indiana
University.
The resignation is effective September 10, 1 9 4 8 .
Mr. Shere has been with the Treasury Department since 1934«
In January 194-8 he was named Director of Tax Research, having
previously served as Acting Director and Associate Direct or*
es
Born in Oxbow, Saskatchewan, Canada, Mr. Shere is a graduate
of the University of Manitoba at Winnipeg, Canada, receiving his
bachelor degree in 1921 and an
•M.A. in 1 9 2 2 .
In 1 9 3 2 he
received a ph.Di) in economics from Columbia University, New York
City.
Mr. Shere lectured in economics at the University of Toronto
and was an instructor in business administration in the Extension
School of Business at Columbia University.
S H E For several
years he was employed as security analyst and general economic
consultant with banking, investment trust and brokerage firms in
New York City.
He was also a member of the research staff of the
State Commission for Revision of New York
Tax Laws.
As a member of the Joint Haitian-American Industrial Mission
If
S
H
in 1944, Mr. Shere wrote the Report on the Haitian Fiscal System.
He is also the author of *A Statistical Approach to certain New York
State Tax Problems and has contributed to many other works on the
TREASURY DEPARTMENT
In fo rm a tio n S e r v i c e
WASHINGTON,
IMMEDIATE RELEASE
Monday, August 23, 194$
Ho. S-832
Secretary Snyder announced today that Louis Shere has resigned
as Director of Tax Research for the Treasury Department to become
Professor of Economics and Director of Tax Research at Indiana Uni
versity. The resignation is effective September 10, 19-4$,
Mr. Shere has been with the Treasury Department since 1934-* In
January 194$ he was named Director of Tax Research, having previously
served as Acting Director and Associate Director.
Barn in Oxbow, Saskatchewan, Canada, Mr. Shere is a graduate of
the University of Manitoba at Winnipeg, Canada, receiving his bach
elor degree in 1921 and an M.A. in 1922. In 1932 he received a
Ph.D. in economics from Columbia University, New York City.
Mr, Shere lectured in economics at the University of Toronto
and was an instructor in business administration in the Extension
School of Business at Columbia University. For several years he was
employed as security analyst and general economic consultant with
banking, investment trust and brokerage firms in New York City. He
was also a member of the research staff of the State Commission for
Revision of New York Tax Laws.
As a member of the Joint Haitian-American Industrial Mission
in 1944-, Mr. Shere wrote the "Report on the Haitian Fiscal System."
He is also the author of "A Statistical Approach to Certain New York
State Tax Problems% and has contributed to many other works on the
subject of taxation.
Mr. Shere is a member of the American Economic Association,
American Statistical Association, International Fiscal Association,
National Tax Association, and the Tax Institute,
-o0o'
K W i
mmtm mm&mm,
Tucciay, Augnili £4« 1948»
Th* sscrstary of ih# Treasury «umouneed laat evsalftg that thè tcndars for
11,000,000,000, or ttembout«, of 92-day Treasury billa to be datad Angust sf and to
mature Kovember S$, 1948, which «Pira offered Augnai SO, 1948, «ara opanad ai thè Fedina
Rasarle Basica on Augnai 83«
The datali« ot ibis isana ara aa follo««:
Total applica far * 11,493,488,000
Total accepted
* 1,000,378,000 (include* #48,109,000 enterad oa a noncompatìtire basta and aoceptad la fall ai
thè atara«« prisa «ho«» bai««)
Areraga pria«
(~ 99.788 Bquiveleni rata of dissonai apprese. 1.078$ par annua
Bange of aoceptad competitive bids:
Hi«h
Lo«
- 99*747 S^ulvalsat rata of discount 0.990$ por annua
<9
m
m
n
- 99.785
apprese. 1.034$ per annua
(88 parsasi of thè amami bld for ai thè lo« prisa «as aeeepted)
Federal Reserve
Oiatriat
Total
Applied ter
Total
Accepted
Bostoa
Ha« Torbe
Philadelphia
Clavalaad
Richmond
Atlaata
Chicago
Si* Louis
Minneapolis
Kansas City
Bailas
San Francisco
# le,«78,000
1,888,384,000
87,899,000
13,958,000
8,880,000
8,881,000
93,014,000
3,078,000
1,435,000
3,910,000
5,145,000
35.383.000
|
11,498,468,000
#1,000,378,000
TOTAL
8,878,000
883,834,000
31,899,000
5,956,000
8,880,000
8,391,000
88,874,000
8,078,000
1,498,000
8,410,000
4,748,000
38.901.000
TREASURY DEPARTMENT
WASHINGTON, D .C
In fo rm a tio n S e r v i c e
RELEASE, MORNING NEWSPAPERS
Tuesday, August 24, 194-8
Na. S-833
The Secretary of the Treasury announced last evening that the tenders for
$1,000,000,000, or thereabouts, of 92-day Treasury bills to be dated August 26
and to mature November 26, 1948, which were offered August 20, 1948, were
opened at the Federal Reserve Banks on August 23»
The details of this issue are as follows:
Total applied for - $>1,493*468,000
Total accepted
- 1,000*376,000 (includes $42,109,000 entered on a
non-competitive basis and accepted
in full at the average price shown
below)
Average price
— -99*726 Equivalent rate of discount approx# 1.072%
per annum.
Range of accepted competitive bids:
High
Low
(83
-••99.747 Equivalent rate of discount 0.990% per annum.
--99.723
"
"
"
”
approx. 1.084%
per annum.
percent of the amount bid for at the low price was accepted)
Federal Reserve
District
Total
Applied for
Total
Accepted
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
$
16,475,000
1,288,324,000
27,699*000
13,956,000
2,580,000
2,591,000
93,014,000
3 ,076,000
1,435,000
3,910,000
5,145,000
35,263?000
#
41 ,493,468,000
$1, 000, 376, 000
TOTAL
0O0
5,875,000
883,834,000
21,699,000
5,956,000
2,580,000
2,291,000
32,574,000
3,076,000
1 ,435,000
3,410,000
4,745,000
32,901,000
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 h2 and
117 (a) (1) of the Internal Revenue Code, as amended by Section Ilf? of the Reve
nue Act of 19l|l, 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 betvfeen 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. Lp_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
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
September 2, 19U8 , in cash or other immediately availm r ------able funds or in a like face amount of Treasury bills maturing September 2, 191+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 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 ary of the
possessions of the United States, or by ary local taxing authority.
For purposes
m
i
m
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Friday, August 27, 19U8._____
The Secretary of the Treasury, by this public notice, invites tenders for
^,P-Q.9j.QQQj 000
j
or thereabouts, of
91
in exchange for Treasury bills maturing
-day Treasury bills, for cash and
September 2, 191*8
, 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
Deceniber 2, 19U8
September 2, 1918
, and
mrwhen 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
daylight saving
closing hour, two o*clock p.m., Eastern/Stestosi time, Monday, August 30, 191*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., 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 Tid.ll 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
In fo rm a tio n S e r v i c e
WASHINGTON, D .C .
RELEASE, MORNING NEWSPAPERS,
Friday» August 27» 1948
No. S-834
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 September 2, 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 September 2, 1948, and will
mature December 2, 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,
August 30, 1948* Tenders will not be received at the Treasury Department,
Washington* Each tenders 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 .
September 2, 1948, in cash or other immediately available funds or in a like
face amount of Treasury bills maturing September 2, 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 -ì
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 new 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 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 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 th‘
e taxable year, for which
the return is made4
, 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
Secretary Snyder tocfey announced t/tat
he
Board of
Officers M*am the Unitap. States Coast/Guard, accompanied by a
member
0/
the Staff of the Senate Appropriations Committee,
recently visited Alaska to confer iQthj Governor Gruening ani. other
/
/
A
/
^
I
Gove ripen t officiali on the question of re establishing t
Coasly Guard District headquarters|in Alaska,
This question^ which has as^jbmed greater importance |in recent
months, has been r 5ceiving the c ose attenti >n of
)fficials
Governor Gr lening and A! aska’s dele ;ate to
Corfgress, E. L. Battlett, have u ged reestablishment,
imate
responsibility for\a decision repbs with the Ji
4ecretaiy o
the
îasuiy.
While in Alaska, Secretary Snyder assured Governor Gruening
that the matter would be acted upon promptly#
Accordingly, upon
his return to Washington, the Secretary requested the Commandant of
the Coast Guard to make a report to him as soon as possible on the
findings of the Board of Officers participating in the inquiry.
It is expected that this report will be submitted in a short
time#
Preliminary plans for the on-the-spot investigation in Alaska
were discussed last May in testimony by Coast. Guard officers before
a subcommittee of the House Appropriations Committee.
Captain A.
Richmond of the Coast Guard told the subcommittee that defense
considerations were involved.
C#
S
Ifr^S
-
f
J - * "
S e c r e t a r y Snyder a n n o u n c e d today that he h a d
b e e n in
A l a s k a r e c e n t l y to conf er w i t h G o v e r n o r G r u e n i n g a nd o t her
G o v e r n m e n t off i c i a l s on the q u e s t i o n of r e e s t a b l i s h i n g the
Coaqt
Guard District headquarters
1,1
The
U.S.
1 7 th
in Alaska.
w' 'i'
S e c r etary said that a b o a r d of o f f i c e r s of the
Coast G u a r d an d a m e m b e r of
A p p r o p r i a t i o n s C o m m i t t e e were
the staff of the
in A l a s k a at that
Senate
time in connection
w i t h the same matter*
The
question of r e e s t a b l i s h i n g the Coast
Headquarters
’1C
in A l a s k a has a s s u m e d g r e a t e r i m p o r t a n c e
in r e c e n t months,
and h a s b e e n r e c e i v i n g the close a t t e n t i o n
of T r e a s u r y officials.
to Congress,
Di
G o v e r n o r G r u e n i n g a n d A l a s k a ’s d e l e t e
E.L. Bartlett,
have u r g e d ree s t a b l i s h m e n t .
U l t i m a t e r e s p o n s i b i l i t y f or a d e c i s i o n rests w i t h
S e c r etary of the Treasury.
the
TREASURY DEPARTMENT
WASHINGTON, D .C
In fo rm a tio n S e r v i c e
IMMEDIATE RELEASE,
Thursday,, August 26, 194-8.
No. S-835
-Secretary Snyder announced today that he had been in Alaska recently
to confer with Governor Gruening and other Government officials on the
question of reestablishing the 17th Coast Guard District headquarters in
Alaska.
The Secretary said that a board of officers of the U. S. Coast Guard
and a member of the staff of the Senate Appropriations Committee were in
Alaska at that time in connection with the same matter.
The question of reestablishing the Coast Guard District headquarters
in Alaska has assumed greater importance in recent months; and has been
receiving the close attention of Treasury officials. Governor Gruening
and Alaska’s delegate to Congress, E. L. Bartlett, have urged reestab
lishment. Ultimate responsibility for a decision rests with the Secre
tary of the Treasury;
While in Alaska, Secretary Snyder assured Governor Gruening that the
matter would be acted upon promptly. Accordingly, upon his return to
Washington, the Secretary requested the Commandant of the Coast Guard to
make a report to him as soon as possible on the findings of the Board of
Officers participating in the inquiry. It is expected that this report
will be submitted in a short time.
Preliminary plans for the on-the-spot investigation in Alaska were
discussed last May in testimony by Coast Guard officers before a sub
committee of the House Appropriations Committee. Captain A. G. Richmond
of the Coast Guard told the subcommittee that defense considerations
were involved.
Reestablishment of the Alaska district headquarters was recommended
by a firm of management engineers which surveyed Coast Guard operations
last year.
-oOo-
2
maintain numerous aids to air navigation.
The Coast Guard
also operates LORAN facilities, which are a long-range aid to
navigation, and provides far-flung search and rescue facil
ities from shore bases which are an important safeguard to
aviators as well as mariners
^
The aeronautical organization of the Coast Guard has long
been prominent in national aviation activities, in Federal law
enforcement work, and in aerial photography and survey.
It
participates in the International Ice Patrol and in weather
observation, and cooperates with other Federal agencies in the
execution of their responsibilities.
The Treasury Department’s interest in the broad activities
of the Coast Guard and other aviation matters involving Cus
toms, Internal Revenue, the facilitation of entry and the promotion of trade^provided the impetus for its inclusion in the
Air Coordinating Committee.
- 0O 0
IMMEDIATE RELEASE,
Wednesday, August 25 » 19^8
of
Secretary Snyder today announced the
Edward H. Foley, Jr., Under Secretary of the Treasury, as the
Department's representative on the Federal Government's Air
Coordinating Committee.
This committee, established in
September, 19^6, originally included as participating agencies
the Departments of State, War, Postoffice, Navy and Commerce,
and the Civil Aeronautics Board.
An Executive Order signed
by President Truman on August 21 enlarged membership of the
group to include the Treasury Department.
/O—
>
f
Under Secretary Foley, whose duties include supervision
over the United States Coast.Guard, and other- enf oreem ent- a-c-_^
tivities of1 tire Treaour^ stated that the Department's intenee
and sustained interest in aviation matters required its aetivn
amd
fHiUptime participation in the work of the coordinating
group.
"Inclusion of the Treasury Department as a member of
the Air Coordinating Committee,"
cnntinued^will result in
a more comprehensive and oorioluai-ve means of
q ompieti-Rg— the
matters dealing with aviation policy, and the
implementation of services contributing to the entire aviation
program."
The Coast Guard currently provides for the operation and
maintenance of vessels at fixed points on the high seas, which
compile weather data, conduct search and rescue operations, and
No. S -836
MEDIATE' RELEASE,
Friday, August 27, 194&*
Secretary Snyder today announced the designation of Edward H. Foley, Jr*,
Under Secretary of the Treasury, as the Department’s representative on the
Federal Government’s Air Coordinating Committee. This committee, estab
lished in September, 194-6, originally included as participating agencies
the Departments of State,.War, Post Office, Navy and Commerce, and the
Civil Aeronautics Board. An Executive Order signed by President Truman on
August 21 enlarged membership of the group to include the Treasury Depart
ment.
”Inclusion of the Treasury Department as a member of the Air Coordin
ating Committee,” Secretary Snyder said, ’’should result in a more compre
hensive determination of matters of aviation policy, and the more effective
implementation of services contributing to the entire aviation program.”
Under Secretary Foley, whose duties, among others, include supervision
over the United States Coast Guard, stated that the Department's active and
sustained interest in aviation matters require its complete participation
in the work of the coordinating group*
The Coast Guard currently provides for the operation and maintenance
of vessels at fixed points on the high seas, which compile weather data,
conduct search and rescue operations, and maintain numerous aids to air
navigation. The Coast Guard also operates loran facilities, which are a
long-range aid to navigation, and provides far-flung search and rescue facil
ities from shore bases which are an important safeguard to aviators as well
as mariners. In addition, the Coast Guard is responsible for over water airsea rescue operations.
The aeronautical organization of the Coast Guard has long been promi
nent in national aviation activities, in Federal law enforcement work, and
in aerial photography and survey. It participates in the International Ice
Patrol and in weather observation, and cooperates with other Federal agen
cies in the execution of their responsibilities.
Treasury representation on the Air Coordinating Committee was urged in
reports on Coast Guard and Bureau of Customs operations made in recent
months by private management engineering firms which conducted studies of
these two Treasury agencies.
-
o
O
q
TREASURY DEPARTMENT
In f o r m a t io n S e r v i c e
WASHINGTON, D .C .
In turning over the canceled stock certificates to
Chairman Harl, Secretary Snyder praised the Federal Deposit
Insurance Corporation as "one of the most important and
far-reaching banking reforms of our times."
"Your repayment of these funds at this early date," he
continued, "is a token of two very important facts: first, that
the directors of F. D. I. C. have carefully administered their
responsibilities during the past fifteen years and, second, that
the F. D. I. C. trust fund has grown to the point where you
are enabled to go forward without the use of Government funds.
"On both counts you, Chairman Harl, the other members
of the board, the entire staff of F . •D. I. C. and your prede
cessors are to be congratulated."
~)u
S'-
2
"Secondly, to encourage banks to retire preferred stock owned by
the RFC -when such retirement will not reduce the capital-deposit ratio
below the national average. This program has accomplished substantial
reductions in RFC holdings of bank obligations.
"We at FDIC are fully aware of the trust reposed in the Corporation.
Each of the 90 ,0 0 0 ,0 0 0 depositors in insured banks share that trust.
The security of lifetime savings of individuals and the availability
of funds of businesses of all sizes are equally our responsibility.
We hold that the -American system of free enterprise banking, with
Federal and ^tate authority sharing credit and responsibility, is the
right answer to America's banking needs, as the last major system of free
enterprise banking in the world, it represents not only a symbol
but a bulwark of our American way of life.
"We hope to help in some measure to make permanent the sense
of security that the 90 ,0 0 0 ,0 0 0 bank depositors now enjoy and to
perpetuate our nation1s dual j^rstem of banking."
TREASURY DEPARTMENT —
FEDERAL DEPOSIT INSURANCE CORPORATION
Washington
XT
FOR IMMEDIATE RELEASE
Mondayg August 30, 194f
0
^
/
J
Repayment of its original #289 >0 0 0 ,0 0 0 of U.S* Government capital
■was completed today by Federal Deposit insurance Corporation •when
Chairman Maple T* Harl of the corporation handed Secretary of the
Treasury John W. Snyder the corporation^ check for #12,604,306*58*
The repayment, suggested by Mr* Harl and authorized by Congress a year
ago, makes Federal Deposit insurance Corporation a Government agency
financed entirely by the banks whose deposits it insures* The balance
had been repaid in installments, beginning September 9, 1947*
Secretary Snyder, accepting the check, congratulated Chairman Harl
on the speed with which the corporation had acted under the authorizing
legislation*
*
Mr* Harl said:
"The country is now well into its fifth year without loss to any
depositor in an insured bank* This is an all-time record for depositor
safety* % believe that sound banking management and vigilant supervision
will make bank failures a rarity in the future*
"We believe it to be sound philosophy that the banks should be
encouraged to stand on their own feet, and that the Government1 s subsidy
in the banking system should be reduced to a minimum* Accordingly, the
Corporation has undertaken two things:
"First, to retire all of the capital stock of
Federal Deposit
insurance uorporation owned by the treasury and the Federal Reserve
Banks* This goal we see realized today.
TREASURY DEPARTMENT —
FEDERAL DEPOSIT INSURANCE CORPORATION
Washington
IMMEDIATE RELEASE,
Monday, August 30, 194.8.
Repayment of its original $289,000,000 of U. S. Government capital
was completed today by Federal Deposit Insurance Corporation when Chair
man Maple T. Harl of the corporation handed Secretary of the Treasury
John W. Snyder the corporation’s check for $12,604-,306.58. The repay
ment |, suggested by Mr. Harl and authorized by Congress a year ago,
makes Federal Deposit Insurance Corporation a Government agency financed
entirely by the banks whose deposits it insures. The balance had been
repaid in installments, beginning September 9,„ 1947.
Secretary^Snyder, accepting the check, congratulated Chairman Harl
on the speed with which the corporation had acted under the authorizing
legislation.
Mr. Harl said:
»The country is now well into its fifth year without loss to any
■depositor in an^insured bank. This is an all-time record for depositor
safety. ^We believe that sound banking management and vigilant super
vision will make bank failures a rarity in the future.
»We believe it to be sound philosophy that the banks should be en
couraged to stand on their own feet, and that the Government’s subsidy
in the banking system should be reduced to a minimum. .Accordingly, the
Corporation has undertaken two things:
’First, to retire all of the capital stock of Federal Deposit Insur
ance Corporation owned by the Treasury and the Federal Reserve Banks.
This goal we see realized today.
»Secondly, to encourage banks to retire preferred stock owned by the
RFC when such retirement will not r'educe the capital-deposit ratio below
the national average. This program has accomplished substantial re
ductions in RFC holdings of bank obligations.
FDIC are fully aware of the trust reposed in the Corporation,
bach of the 90,000,000 depositors in insured banks share that trust.
The security^of lifetime savings of individuals and the availability of
xunds of businesses of all sizes are equally our responsibility. We
0 ^ that the American system of free enterprise banking, with Federal
and State authority sharing credit and responsibility, is the right
» 2 -
answer to America’s banking needs* As the last major system of free en
terprise banking in the world, it represents not only a symbol but a bul
wark of our American way of life,
MWe hope to help in some measure to make permanent the sense of se
curity that the 90,000,000 bank depositors now enjoy and to perpetuate
our nation’s dual system of banking,”
In turning over the canceled stock certificates to Chairman Harl,
Secretary Snyder praised the Federal Deposit Insurance Corporation as ’’one
of the most important and far-reaching banking reforms of our times,”
’’Your repayment of these funds at this early date,” he continued, ”is
a token of two very important facts: first, that the directors of FDIC
have carefully administered their ^responsibilities during the past fifteen
years and, second, that the FDIC trust fund has grown to the point where
you are enabled to go forward without the use of Government funds*
”0n both counts you, Chairman Harl, the other members of the board,
the entire staff of FDIC and your predecessors are to be congratulated,”
- 0O0-
No. S-837
-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 llf> 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, 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
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 September
9.
19li8
s in
cash or other immediately avail-
able funds or in a like face amount of Treasury bills maturing September
Cash and exchange tenders will receive equal treatment.
9.
19L.8 »
Cash adjustments vri.ll 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
ExftäMfcidL
£Qfc
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Tuesday, August 31, 19U8.
The Secretary of the Treasury, by this public notice, invites tenders jfor
$1,000,000,000 , or thereabouts, of 91
-day Treasury bills, for cash and\
~fl5:
“
in exchange for Treasury bills maturing September 9, 19U8 , to be issued on^
a discount basis under competitive and non-competitive bidding as hereinafter^
provided.
willJnature
interest.
The bills of this series will be dated
December^, 19U8
September 9* 19U8
, and
I s r -------, 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 Tclock p.m., Eastern/StesaadacK± time, Friday, September 3, 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
than three decimals, e. g., 99.925.
100 , with
Fractions may not be used.
not more
It is urged
that tenders be made on the printed forms and forwarded in the special envelopes
which Trilli 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
In fo rm a tio n S e r v i c e
RELEASE, MORNING NEWSPAPERS,
Tuesday, August 31. 194-8.
WASHINGTON, D .C
No* S-838
The Secretary of .the Treasury, by this public notice, invites tenders
for Si,000,000,000, or thereabouts, of 91-bay Treasury bills, for cash and.
in ex ch a n g e for Treasury bills maturing September 9, 1948, to be issued on
a discount basis under competitive and non-competitive bidding as hereana^r.^
provided. The bills of this series mill be dated September 9, -948, and ■■all
mature December
9,1948, 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, n ay,
September 3, 1948. Tenders will not be received at the Treasury Department,
Washington. Each tender must be for an even multiple of ^1,000, an m
the case of competitive tenders the price offered must be expresssed on the
basis of,100, with not more than three decimals, e. g., 99*925* Fractions
may. not be used. It is urged that tenders be made on the printed f orms and
forwarded in the special envelopes which will be supplied by Feaeral 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 investmen
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 incorpora e' an 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 oi
accepted bids. Those submitting tenders will be advised of the- acceptance
or rejection thereof. The Secretary of the Treasury express y reserves
e
right to accept or reject any or all tenders, in whole or in par , an
is
action in any such respect shall be final. Subject to these reserva ions,
non-competitive tenders for 4200,000 or less without stated price rom any
one bidder will be accepted in full at the average price (in three ecima s;
of accepted competitive bids. Settlement for accepted tenders in accor ance
with the bids must be made or completed at the Federal Reserve Banks on
September 9, 1948, in cash or other immediately available funds in a like
face amount of Treasury bills maturing September 9> 1948.a Cash and exchange
tenders will receive equal treatment. Cash adjustments, will be ma e for
differences between the par value of maturing bills accepted in. exchange
and the issue price of the new bills.v
- 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 dr 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 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 I94lj 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 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’phid for such bills* whether
^ssue 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©
I
>
? ♦.
;
'
.
Treasury Department Circular No© 413, 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#
m M &M,m m m
hesspapbrs,
Tees&ar« August 31, 1948*
Th* Secretary of the Treasury announced loot arming «luit the tender® fo r
#1,000,000,000, oi? thereabouts, of 91-day fre&aury bille to bo dated September g, ^
to sature Beeenber 8, 1948, which «oro offered August 89, 1948, wore opened at tbs
federal Reserve Beaks on August 80«
fkm detalle of tbis issue are as follows¡
fetal applied for * #1,614,415,000
fe^ü. aeeepted
« 1,000,066,000
Average price
(includes #48,889,000 entered on a aoacoopetltlve basis and accepted la full at
tbe atarage price ehowa below)
- 99,988/ IptiveXcat rate of dleeouat approx. 1.095# par m m m
Range of accepted compétitive bidet
• 99.958 Equivalent rate of dlsoouat approx. 1.060)1 per ansia
♦ 99*986
m
m
m
1.Ô84ÉI *
§|j||PI
m
til. amount 914 for at the low pries m e .eo.pted)
federal Reserve
District
Total
Applied for
s
Bostoa
Use fork
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
Sto leale
Minneapolis
Kansas City
pillee
San Francisco
1
•
t o m
19,544,000
1,585,849,000
15,015,000
85,009,000
8,660,000
8,895,000
99,504,000
4,596,000
6,010,000
59,516,000
*,899,000
56,659,000
$1,614,415,000
s
fetal
I
(98 pwrc.ot of
m
0
lew
6,824,000
888,089,000
8,916,000
19,468,000
8,640,000
8,868,000
55,884,000
4,548,000
5,994,000
48,945,000
5,915,000
89.965.000
91,000,0*6,000
*
RELEASE* M O P I N G NEWSPAPERS,
Tuesday, August 31, 1948 .
No* S-839
The Secretary cf the Treasury announced last evening that the tenders for
|1,000,000, 000, or thereabouts of 91-day Treasury bills to be dated September 2
ana to mature December 2* 1948? which were offered August 27* 1948, were
opened at the Federal Reserve Banks on August 30*
The details of this issue are as follows:
Total applied for -$ 1* 614* 413, 000
Total accepted
- 1,000,566,000 (includes $43*329,000 entered on a non
competitive basis and accepted in full
at the average price shown below)
Average price
— 99*723^ Equivalent rate of discount approx* 1*075$
per annum»
Range of accepted competitive bids:
- 99.732 Equivalent rate of discount approx* 1.060$
per annum*
- 99*726 Equivalent rate of discount approx* 1.084$
per annum*
High
Low
(92 percent of the amount
Federal Reserve
District
price was accepted)
bid forat thelow
Total
Applied
for
$
19,344,000
1,323*249,000
Boston
New York.
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St, Louis
Minneapolis
Kansas City
Dallas
San Francisco
,
15 015,000
W
TOTAL
23, 007, 000
2* 660,000
2*276,000
99.804.000
4,596,000
4,010,000
57.516.000
6,277,000
56.659.000
(1,614,413,000
Total
Accepted
$
6, 224,000
822,089,000
2,918,000
19-,458,000
,
2 640,000
2,268,000
.53,824,000
4.548.000
3.974.000
48.745.000
5.915.000
27.963.000
$1 , 000, 566,000
|p§
- 24. -
Treasury Departments position to the court by the Department of
Justice.
The Department Circulars containing the regulations governing United
States Savings Bonds that I mentioned earlier —
that is, Department Circular
No. 653, as revised, amended, and supplemented, Department Circular No*
654, as revised and amended* and Department Circular No. 530, as revised
and amended —
may be obtained through the Federal Reserve Banks and Branches,
the Chicago Branch of the Bureau of the Public Debt, or the Bureau of the
Public Debt in Washington.
Any of these offices will be glad to mail the
circulars to you upon request.
Information on the application of the
Federal income, estate, and gift taxes to United States Savings Bonds may
be obtained from the Office of the Commissioner of Internal Revenue in
Washington o r from your l o c a l C o lle c to r o f In te rn a l Revenue.
- 23 -
will either submit it to the Chicago Branch of the Bureau of the Public
Debt or will advise you to do
)
3D
. If you are not near a Federal Reserve
i
Bank or Branch, the problem should be submitted to the Chicago Branch, 36/
where, unless it is a rather unusual transaction, the entire matter can be
handled.
If you are in or near Chicago or Washington, it may be convenient
\
for you to consult directly either the Chicago Branch or the main office of
the Bureau in Washington.
There is one type of case which should be referred
directly to the main office in any event.
That is the occasional case still
arising in which an attempt is made to defeat the rights of a surviving
i
coowner or beneficiary*
When this occurs, particularly if it appears there
will be litigation, the Bureau would appreciate having the matter referred
directly to the Commissioner* s office.
That office will be glad to supply
you with a statement of the Department1s position and citations to the cases
that have been decided on the questions involved.
37/ If the case involves
important questions arrangements will be made for presentation of the
w
Bureau of the Public Debt, Merchandise Mart, Chicago 54-, Illinois
^7/ Statement of the Treasury Department on the Rights of Surviving
Coowners and Beneficiaries of Savings Bonds, July 5, 194-5, «.nd the
appendix thereto.
i t s f a c i l i t i e s in connection w ith the savin gs bond program and i s doing a l l
in i t s poorer to serve the savin g s bond holding p u r li c •
To b rin g these
I
s e r v ic e s c lo s e r to the in d iv id u a ls the m ajo rity o f the banks, t r u s t companies,
mutual savin gs banks, and F ed eral savin g s and lo an a s s o c ia tio n s have been
authorized to redeem S e r ie s E bonds fo r the r e g is te r e d owners, and F ed eral
R eserve Banks have been authorized to handle a la r g e number o f the redemption
and r e is s u e tra n sa c tio n s th a t a r i s e in connection w ith savin gs bonds o f
S e r ie s F and G a s w e ll a s S e r ie s E .
The Bureau o f the P u b lic Debt has a ls o
e sta b lish e d an o f f ic e in Chicago, which handles most o f the tra n sa c tio n s
in v o lv in g savin gs bold s .
HOW TO OBTAIN BEST RESULTS FROM FACILITIES AVAILABLE
These f a c i l i t i e s a re designed to serve you*
g estio n s on how th ey may serve you b e s t .
I might make th ese sug
I f you are in or near a c i t y with
a F e d e ra l R eserve Bank or Branch you should tak e a United S t a t e s Savin gs Bonds
problem f i r s t t o the Bankf s o f f i c e r who handles savin gs bond tra n s a c tio n s .
I f the F e d e ra l Reserve Bank is authorized t> handle the tra n s a c tio n , the
o f f i c e r w i l l a d v ise you how th e m atter may be handled*
Reserve Bank i s not authorized
I f the F ed eral
to handle your p a r t ic u la r problem, the o ffic e r
-
21
-
au th orized many agen cies t> issu e S e r ie s E bonds*
||
*£&
A t the presen t time i t
i s p o ssib le to purchase S e r ie s E bonds from the T reasu rer o f the United
S t a t e s , F e d e ra l Reserve Banks cr B ran ches, most United S t a t e s P o st O ffic e s ,
most incorporated banks, t r a s t companies, mutual savin gs banks, F ed eral
savin gs and loan a s s o c ia t io n s , and many in d u s t r ia l and commercial firm s*
They may
%lj
purchased through p a y r o ll deduction p lan s by wage earn ers or
through lo c a l banks and t r u s t companies by p ro fe s s io n a l and b usin ess men
under the wBond-A-Month” p la n .
S e r ie s F and S e r ie s G bonds may be purchased
from the T reasu rer o f the United S ta te s or the F e d eral R eserve Banks and
Branches, and a p p lic a tio n s f o r the purchase o f th ese bonds may be sent
through the agen cies authorized to is s u e S e r ie s E bonds which I have
mentioned.
W
FACILITIES THROUGH WHICH UNITED STATES SAVINGS
BONDS Mg BE REDEEMED OR REISSUED.
Not only has the Treasury Department made i t easy fo r the p u b lic to
buy th ese bonds, but the Treasury* s Bureau o f the P u b lic Debt has expanded
2A/ Dept. C ir . No. 653, Second R e v isio n , P a rt III.
25/
Dept. C ir* No. 654> Second R e v is io n , P a rt I I I .
-
20
-
MARITAL DEDUCTION PROVISIONS OF REVENUE ACT OF 19A8
The Revenue â c t o f 1948 introduced a new concept in to e s ta te and g i f t
t a x law s; th a t i s , Hie m arital deduction*
T h is m a rita l deduction has the
same e f f e c t when g i f t s a re made o f savin g s bonds a s i t has when g i f t s a re
made o f other p ro p e rty .
I t seems a d v is a b le , however, to c a l l to your
a tte n tio n some o f the p ro v isio n s o f the A c t .
I n g e n e ra l, the Act authorizes
the deduction from the gro ss e s t a te o f an amount $q u al to the valu e o f certain 1
property in t e r e s t s p assin g t o the decedent*s su rv iv in g spouse, not to
exceed o n e -h a lf o f the a d ju sted gro ss e s t a t e ; i t a u th o rize s the deduction
o f o n e-h a lf o f the va lu e o f any g i f t o f an in t e r e s t in non-community property
made by any person to h is spouse; and i t a u th o rize s spouses to e le c t to
t r e a t any g i f t o f an in t e r e s t in property to a th ir d person a s made
o n e-h a lf by each spouse.
These p ro v isio n s apply to savin g s bonds
ju s t the same a s th e y do to any p ro p e rty .
i
FACILITIES THROUGH WHICH UNITED STATES
SAVINGS BONDS MAI BE PURCHASED
The Treasury Department has t r ie d in every way p o s s ib le t o make these
bonds r e a d ily a v a ila b le to the sm all in v e s to r .
To accom plish t h i s i t has
- 19 r e a liz e d in t e r e s t , but in the y e a r o f redemption the d iffe re n c e between the
redemption valu e and the purchase p r ic e i s d ed u ctib le as o rd in ary lo s s in curred in a tra n sa c tio n entered in to fo r p r o fit *
I t i s not l i k e l y th a t i t w i l l ever be a r e a l problem which o f two
tax p a y ers i s req u ired to re p o rt the in t e r e s t on United S ta te s Savin gs
Bonds.
When bonds a re r e g is te r e d in the names o f two persons a s coowners,
in t e r e s t i s income to the person who contributed the purchase p r ic e .
I f the purchase p r ic e i s contributed by both, in t e r e s t i s income to
both in proportion to t h e ir c o n trib u tio n s.
I f the bonds were a g i f t to
both coowners, in t e r e s t i s income to each o f them in equal amounts.
For ta x a b le y e a rs beginning a f t e r December 1 , 194.0, re g a rd le s s o f the issu e
date o f the bonds, a tru s te e may e le c t to t r e a t the annual increment in
valu e o f savin gs bonds held in t r u s t a s ta x a b le income*
I f th a t e le c tio n
i s made, the increment i s ta x a b le to the b e n e fic ia r y i f d is t r ib u t a b le to
him under se c tio n 16 2 o f the In te rn a l Revenue Code.
Income from in t e r e s t
on savin g s bonds i s , o f cou rse, e l i g i b l e fo r the "sp lit-in c o m e " treatm ent
provided by the Revenue Act of 194-8
INCOME! TAX STATUS OF THE INTEREST
ON UNITED STATES SAVINGS BONDS
Problems in v o lv in g income ta x e s on the in t e r e s t on savin g s bonds are
f a i r l y sim ple.
In the case o f S e r ie s E and F bonds which a re issu e d a t a
d isc o u n t, the increment in va lu e i s ta x a b le in t e r e s t income.
I f the ta x
payer i s on the a c c ru a l b a s i s , in t e r e s t i s income a s i t accru es*
I f the
taxp ayer I s on the cash b a s i s , the in t e r e s t may be reported each y ear as
accrued (a s shown in the ta b le on the bonds), o r i t may a l l be reported when
the bonds mature or when they a re redeemed.
Once the taxp ayer has ele cted
to re p o rt the in t e r e s t a s i t a c c ru e s , however, he cannot change to the cash
b a s is without the perm ission o f the Commissioner o f In te r n a l Revenue.
I n t e r e s t on S e r ie s G bonds may be included ih g ro ss income e ith e r when r e
ceived or a s i t a c c ru e s, depending upon the tax p a y er1 s method o f accounting.
The in t e r e s t accru es when i t becomes p ayab le, but not u n t i l th en .
Under the
terms o f issu e the redemption valu e o f S e r ie s G bonds p r io r to m a tu rity , ex
cept in c e r ta in cases upon d eath , i s l e s s than the purchase p r ic e ; tech n ically,
t h is d iffe re n c e i s a refund in p a rt o f in t e r e s t p re v io u s ly paid or accrued.
Upon redemption b efore maturiiy no adjustment can be made in any y ea r fo r
- 17 -
valu e would form a p a rt o f B*3 gro ss e s ta te fo r e s ta te ta x purposes*
Of
course
i f B*s death occurs w ith in f i v e y ea rs o f the g i f t o f the bonds a deduction equal
to the amount o f the p ro p erty p re v io u sly taxed w i l l be perm itted*
Bonds
purchased
by A and re g is te r e d g ra tu ito u s ly in B*s name, payable on death to C, constitute
a g i f t to B during the y ea r purchased; the c o st o f the bonds must be considered
in determ ining A* s g i f t t a x l i a b i l i t y fo r th a t year*
Upon B*s death the entire
redemption va lu e would form a p a rt o f B f s gro ss e s t a te fo r t a x purposes*
The
deduction fo r prop erty p re v io u sly taxed would a ls o be allow ed here i f applicable,
Bonds purchased by A and re g is te r e d g ra tu ito u s ly in the form *A or
B*j present
no g i f t t a x problem u n less and u n t il A g ra tu ito u s ly perm its B to redeem the
bonds and r e t a in the redemption valu e*
When t h is occurs the redemption
va lu e must be considered in determ ining A*s g i f t t a x l i a b i l i t y fo r th a t
y ea r*
On A*s death the e n tir e redemption valu e o f bonds s t i l l outstanding
in t h is form would c o n stitu te a p a rt o f h is g ro ss e s ta te fo r t a x purposes*
Bonds purchased by A and re g is te r e d g ra tu ito u s ly in the form "B o r C"
c o n stitu te a g i f t and upon the death o f e ith e r B or C o n e -h a lf o f the redemption
valu e would form a p a rt o f the decedent*s gro ss e s ta te f o r t a x purposes*
22/
Com* Mimeograph, C o ll* No* 5202, R* A* No* 1 1 2 8 , O ffic e o f the Commissioner
o f In te r n a l Revenue, June 1 4 , 19 4 1*
-
16
-
if
is not exempt from federal income taxes.
32/
Consequently, the effedt of
0
each of the three forms of registration upon tax liabilities is of interest.
0
EXAMPLES Of GIFT TAX AND ESTATE TAX APPLICATION
A few examples should serve to illustrate.
These examples, I should
make it clear, involve only Federal taxes.
Tax liability under th» laws of
the various States may be quite different.
Bonds purchased by A and
registered in A*s name alone involve no gift tax problem; they involve
exactly the same estate and inheritance tax problems as any other property
i
upon the death of A.
Bonds purchased by A and registered gratuitously in
B*s name alone, constitute a gift during the year purchased;
the cost of
the bonds must be considered in determining A* s gift tax liability for that
year.
Bonds purchased by A and registered in A*s name, payable on death to
B, involve no gift tax problem, but on A ’s death their entire redemption
value (this would be the par value of G bonds) would form a part of his gross
estate for tax purposes.
Bonds purchased by A and registered gratuitously
in B*s name, payable on death to A, constitute a gift to B during the year
purchased and the cost of the bonds must be considered in determining A*s
gift tax liability for that year.
32/
Upon B*s death the entire redemption
Dept. Cir. No. 653, Second Revision, Part II, Sec. 4*
Dept. Cir. No. 654, Second Revision, Part II, Sec. 7.
- 15 -
ment of an executor or administrator the time for giving notice will
ordinarily be extended to six months from the date of appointment of the
executor or administrator*
There is a further restriction applying only to the par payment of bonds
held by a trust or fiduciary estate that is terminated by death of an
/
individual. If the trust is terminated only in part, par payment will be
made of only a proportionate part of the Series G bonds held by the trust. J3l/
While this provision may be advantageous in some instances, it should
not be forgotten that Series G bonds belonging to an estate or a trust may
be reissued in the names of tine heirs or other persons ultimately entitled
with the original dating and may be held by them to maturity without any
■/
¿y
/
loss of interest yield.
TAX STATUS OF UNITED STATES SAVINGS BONDS
Savings bonds of Series E, F, and G, and the interest paid upon them are
not subject to taxes imposed on principal or interest by any State or possession
of the United States or by any local taxing authority. They are not, however,
exempt from gift, estate, and inheritance taxes, and the interest paid on them
31/ Dept. Cir. No. 530, Sixth Revision, First Amendment, Sec. 315*23 (c) •
- 14
< tfi
v
very unusual and liberal feature for any security to possess*
certain limitations were imposed.
Consequently,
To take advantage of the provision for pay
ment at par before maturity, the person entitled to receive payment must, with
in six months of the death of the registered owner, coowner, or person whose
death terminated the fiduciary estate, give to a Federal Reserve Bank or the
Treasury Department fs Division of Loans and Currency in Chicago, notice in
writing of his intention to redeem at par*
30/
The bonds need not be submitted
with this notice, but they must be submitted, together with the required proof
of death, to the office to which notice was given not later than the last day
of the month preceding by one calendar month the date on which payment is de
sired.
It is not required that the bonds be submitted with the notice for
the person entitled to payment has an option to delay redemption until the
date of the second interest payment after the death which made redemption
possible.
The time for giving notice of intention to redeem at par may be
extended by the Department in certain cases where it was impossible to give
notice.
ee/
Far example, if there has been litigation which delayed the appoint
Dept. Cir. No. 530, Sixth Revision, First Amendment, Sec. 315*23 (c).
- 13 -
one coowner they become the sole and absolute property of the survivor*
27/
The effectiveness of this foim of registration has also been generally
recognized by the various courts which have considered the matter*
Coownership bonds may be reissued to eliminate the name of a living
coowner in three cases: (1 ) where a coowner tnarries and the other coowner
consents to reissue in order to substitute the new spouse as cooYmer or
beneficiary 5 (2 ) where cooimers have been divorced and a property settlement
incorporated in the decree or ratified by the decree awards the bonds to one
of the coowners $ and (3) where, in the case of Series F or G bonds, the co
owners create a living trust fcr the benefit of both in whole or in part
during their lifetime and reissue in the name of the trustee is desired.
28/
These provisions add some flexibility to the coownership form of registration.
PAR PAYMENT OF SERIES G BONDS
One feature of Series G bonds merits special consideration*
This is the pro
vision for optional redemption at par upon the death of an owner or coowner, if a
natural person, or upon the termination by reason of the death of an individual
of a trust or fiduciary estate which holds the bonds*
¿2/
28/
29/
29/
This is a
Dept. Cir. No. 530, Sixth Revision, Sec. 315*45 (c)
Dept. Cir. No. 530, Sixth Revision, Sec. 315*45 (b) (3)*
Dept. Cir. No. 654* Second Revision, Part II, Sec. 4*
-
12
-
Upon the death of the registered owner a surviving beneficiary becomes en
titled to the savings bonds as sole owner*
2Lf
The effects of this form
of registration as set forth in the Departments regulations have been
variously attacked as contravening the local laws of testamentary disposition,
the laws of descent and distribution and the law of gifts.
However, the
effectiveness of the Treasury regulations has been quite generally recognized
by the courts, both state and federal.
The few decisions in State courts to
the contrary, the first of which was Decker vs. Fowler in the Washington
courts
25/. have been negatived by the legislatures of those States through
the passage of statutes specifically recognizing the effect of this form
of registration.
26/
COOWNER FORM OF REGISTRATION
Of the three permitted forms, bonds registered in coownership form, that
is, "John Smith or Ellen Smithn, are the least adaptable to changing conditions.
In many cases, however, they will meet the wishes of the purchaser more exact
ly than either of the two forms already discussed.
Bonds registered in this
form may be redeemed upon prescription by either coowner; upon the death of
24/
7£j
2k/
Dept. Cir. No. 530, Sixth Revision, Sec. 315*
92 Pac. 2d 254.
Statement of the Treasury Department on the rights of Surviving Coowners
and Beneficiaries of Savings Bonds,
-
11
-
Single named owner bonds do not complicate the distribution of the
property of a decedent; in many cases they simplify it. Unless the laws of
the jurisdiction in which the decedent was domiciled require it, it is not
necessary to establish title to savings bonds by administration of the estate.
Even if administration is required by local law the Treasury will make payment
on bonds without it if the value of the bonds is $ 2 5 0 maturity value or less
or the estate under $500* In lieu of administration a fairly simple form may
be filed with the Department setting out the facts concerning the estate of
the decedent and the rights of the parties claiming the bonds. 2 2 /
BENEFICIARY FORM OF REGISTRATION
The beneficiary form of registration, that is, «John Smith payable on
death to Ellen Smith«, does not give the purchaser or registered owner quite as
fre e
a hand in his use of the bonds after purchase as the single named owner forffii
Under the regulations, although the owner may redeem the bonds at his option,
he may not eliminate or change the beneficiary at will* These bonds may
be reissued, however, to name the beneficiary as coowner* If the bene
ficiary predeceased the registered owner or if the beneficiary consents, the
bonds may be reissued in the same manner as single named owner bonds*
22/ Dept* Gir. No* 530, Sixth Revision, First Amendment, Sec* 315*4-7*
23/ Dept* Cir* No* 530, Sixth Revision, Sec. 315*32 and 315*46 (b)*
22/
after purchase.
If a purchaser has bonds issued in his own name it is
possible for him to have them reissued at a later date naming another
natural person as coowner or beneficiary. If they are of Series F or G
he may also have them reissued in the name of a trustee of a living trust
created by him for his benefit in whole or in part during his lifetime. 19/
While a testamentary trust may become entitled to Series E bonds, they may
not be reissued in the name of the trustee. Upon the death of the registered
owner, bonds in single named owner form belong to his estate. It is well
to keep in mind that they may be redeemed by the executor or administrator
of the estate or they may pass by will or by the laws of descent and
distribution. A person who thus becomes entitled to bonds may have them
reissued in his name alone or with a coowner or beneficiary and the reissud
bonds will be dated as of the original date of issue. 20 /
If a purchaser desires to make a gift of the bonds he may have them
registered in the name of the donee when purchased. Such registration
vests title to the bonds in the donee. 2 1 /
19/
Dept*Cir. No. 530, Sixth Revision, Sec. 315*32 and 315.4 4 .
20/
Dept.Gir. No. 530, Sixth Revision, First Amendment, Secs. 315*36 and 3^5•$'
21/
Dept.Cir. No. 530, Sixth Revision, Sec. 315*2.
_ 9 —
||j
forms of registration and in addition may be registered in the names of
persons acting in a fiduciary capacity (such as guardians, trustees, etc*),
and in the name of a corporation, a partnership, or an unincorporated
association, 15/ but the beneficiary and coowner forms may not be used
unless all persons named in the registration are natural persons in their
own right*
Bonds of Series F and G registered in the name of a trustee (whether
an individual or a corporation) may be reissued in the name of succeeding
trustees whether the trust was established by will, declaration, or other
wise, 16/ and upon the termination of the trust may be reissued in the name
of the person, or persons, entitled to the assets thereof*
w
Reissue
is, of course, allowed in the case of merger, consolidation, or dissolution *1§/
of corporations, partnerships, and unincorporated associations*
SINGLE NAMED OWNER FORM (INDIVIDUAL)
The first foim, angle named owner, is the simplest form in many respects;
it permits the registered owner the greatest latitude in handling his bonds
15/
To/
17/
IS /
Dept*Cir* No* 530*
Dept.Cir. No* 530,
Dept.Cir. No. 530,
Dept.Cir* No. 530,
Sixth
Sixth
Sixth
Sixth
Revision, Sec. 315*5*
Revision, Sec. 315*4-9*
Revision, First Amendment, Sec. 315*50 (a) (b).
Revision, Sec. 315*56.
A word as to the reason for these limitations.
Savings bonds
of Series E were designed primarily to attract investors with relatively
small means.
A limitation was, therefore, established so that large
concentrations would not be made in the hands of a relatively small
number of individuals.
The undesirability of large concentrations in
the case of Series E, F, and G, should be apparent in view of the fact
that savings bonds are virtually demand obligations.
amount of
$200,000 (issue price) in their names in coownership form,
they would have an excess.
In the ease of all three series, the method
of computing coownership holdings does not depend on the source of the
money used to purchase the bonds, the order in which the coowners are
named, physical possession or relationship (as such) between the parties.
Under the regulations an excess must be surrendered for refund of
the purchase price less (in the case of Series G bonds) ary interest
which may have been paid thereon, or for such other adjustment as may
be possible.
In many instances adjustments of an excess will involve
no loss of investment yield, or very little.
For example, the $200,000
(issue price) of Series F and G bonds which John and Ella purchased
during 1948, can be adjusted by reissuing one-half the amount in the
name of John payable on death to Ella and the other half in the name of
Ella payable on death to John.
The reissued bonds would bear the same
issue dates as the originals. 'The regulations governing the limitation
are set forth in full in Subpart C of Department Circular No. 530, Sixth
Revision, as amended.
(J &
-
regard to the limit.
2
-
"The happening of an event” which would exclude the
application of the limitation, as those words are used here, would include
successorship, for example.
In brief, X Corporation having absorbed and
continued the business activities of Y Corporation would be entitled to
acquire and to have reissued in its name any bonds of Series F and G held
by Y up to the limit, even though X itself already held the limit in bonds
of the same series issued in the same calendar year.
The method of computing holdings of coowners, for the purposes of
the limitation in holdings, varies as between Series E bonds, on the one
hand, and Series F and G bonds, on the other.
In the case of bonds of
Series E, bonds registered in coownership form may be applied to the
holdings of either or may be apportioned between them, but will not be
applied to both, whereas bonds of Series F and G registered in coownership
form are charged in full to both coowners.
In other words, John Jones
and his wife, Ella, could buy $20,000 (maturity value) of savings bonds
of Series E-1948 in their names in coownership without exceeding the
limit, but ,if they bought savings bonds of Series F and G 19-48 in the
LIMITATION ON HOLDINGS
There is a limitation on the amount of savings bonds of the various
series which an owner may have issued to him during any one calendar year., |
/
The existing limitation for savings bonds of Series E is $10,000 (maturity
value) on original issue for each calendar year*
The limitation per
calendar year on original issue of savings bonds of Series F or G is
$100,000 (issue price) of either series or of the combined aggregate of
both.
The words "original issue” as used here are in contradistinction to
bonds acquired by reason of the death of another, the termination of a
trust, or the happening of any other event within the meaning of the
regulations.
For example, John Jones who has purchased savings bonds of
Series E, F, and G, up to the limit for the year 1948, would not acquire
an excess by reason of the death of Mrs. Ella S. Jones leaving him bonds
registered in her name alone or in her name payable on death to him up to
the limit in Series E, F, and G 1948.
Under the regulations bonds so
acquired are not included in. computing a person*s holdings, and John Jones
would of course be entitled to have such bonds reissued in his name without
- 8 -
interest constitutes a net return; if redeemed before maturity, except under
special circumstances which make them subject to par payment, they will be
redeemed at fixed amounts less than par, the difference between the amount
paid and par constituting an adjustment of the interest paid in relation to
the time the bonds have been outstanding.
Insert "Limitations on Holdings1* here.— ?>
FORMS AND EFFECTS OF REGISTRATION
It is very important that a security be obtained in a form that will
achieve the purpose for which it is purchased. Since savings bonds are issued
only in registered form 1 3 / the forms of registration permitted and the
effect of each form of registration are important.
For natural persons in their own right, savings bonds of Series E are
available in three, and only three, forms of registration: single named
owner form — "John A. Jonesaf"; beneficiary form — "John A. Jones payable
on death to Mrs. Ella S. Jone^^ and coowner form — "John A. Jones or Mrs.
Ella S. Jonest" • a
u /.
12 /
/
Bonds of Series F and G are available in the above
D ept. C i r . No. 654, Second R e v is io n , Paid; I I , S e c . 2 and 4 .
D ept. C ir* No. 6 5 3, Second R e v is io n , P a rt I I , S e c . 1 .
D ept. C i r . No. 654-, Second R e v is io n , P a rt I I , S e c . 1 .
Dept. Cir. No* 530, Sixth Revision, Sec. 315*2.
Dept.
Dept*
Dept.
C i r . No. 6 5 3 , Second R e v is io n , P a rt V.
C ir . No. 654, Second R e v is io n , P a rt V.
C i r . No. 5 30 , S ix th R e v is io n , S e c . 315*4 *
-7 5
available for purchase. Accordingly, the discussion will be limited in the mail
to savings bonds which are currently available. These are Series E, F, and G.
COST OF UNITED STATES SAVINGS BONDS
AND RATES OF INTEREST PATH
The terms upon which savings bonds may be purchased and the rate of
return are of primary interest to the investor. Most of you are aware of
the graduated nature of the return on these bonds so I will review those
provisions only briefly. Series E bonds are sold at a discount at 75
percent of their maturity value. They mature in 10 years, and if held to
maturity net 2.9 percent interest compounded semiannually; for shorter
periods the return is proportionately less. 10/ Series F bonds are sold
at a discount at 74 percent of their maturity value. They mature in 32
years, and if held to maturity net 2 . 5 3 percent interest compounded semi
annually; for shorter periods the return is proportionately less. 1 1 /
Series 6 bonds are sold at par and mature in 12 years. Interest is paid at
the rate of 2.5 percent semiannually. If 8 bonds are held to maturity this
10/ Dept. Cir. No. 653» Second Revision, Part II, Sec. 2.
11/
Dept. Cir* No. 654, Second Revision, Part II, Sec. 2 and 3.
- 6 -
f r iP
Series F and Series G bonds. These circulars set forth the t*rms of the bonds
and describe them with particularity. The general regulations currently
in effect as to all United States Savings Bonds are contained in Department
Circular No. 530, Sixth Revision, as amended.
J/
I call your attention particu-
lariy to these Department Circulars because under modem decisions most of which
follow the reasoning of U.S. vs. Birdsall 8/ and U.S. vs. Japmun-h*
%/9
the
regulations which they contain are regarded as "the supreme law of the land
* * * anything in the constitutl on or laws of any State to the contrary not
withstanding.» While the regulations have been revised and amended several
times since originally promulgated, the changes have in general been for the
purpose of increasing the rights and benefits of the registered owners.
It should be made clear at this point that this discussion is not in
tended to cover the provisions of the circulars and regulations relating
solely to United States Savings Bonds of Series A to D. Bonds of these
issues are outstanding in relatively small amounts and they are no longer
amendments.
2/
k
8/
233 U.S. 223.
2/ 257 U.S. 42
£ tfb
- 5-
to borrow money on the credit of the United States 2/, but it is possible
immediate
that many of you have not had/fch® occasion to consider the authority of the
Secretary of the Treasury to issue United States Savings Bonds. Under the
authority given in the Constitution
22 of the Second Liberty Bond Act.
the Congress, in 1935, passed Section
lj
This section has been slightly
amended since that time, but the basic provisions have been unchanged. It
confers broad authority on the Secretary of the Treasury to issue savings bonds
in such manner and subject to such terms and conditions, including restrictions
on their transferability, as he may from time to time prescribe. Pursuant
to this authority the Secretary of the Treasury offered United States
Savings Bonds to the people of the United States* The current offering
circulars for these bonds are Department Circular No. 653, Second Revision,
as supplemented and amended
3/,
which offers Series E bonds, and Department
Circular No. 654-, Second Revision, as amended 6/, which offers
2/ Art. 1, Sec. 8 , Cl. 2.
1/
Art. 1, Sec. S, Cl. 18.
ij
Feb. A, 1935, C5, Sec. 6 , 49 Stat. 21 (found in its amended form in
U.S.C. 1946 ed.^ Title 31, 757c).
3/
3
supplements and one amendment.
6/
3
amendments
million wage earners throughout the United States purchase these bonds
monthly through payroll allotments* Over half a million other individuals,
largely professional and business men, purchase them regularly through their
banks under the 11Bond-A-Monthtt plan* Large amounts are purchased annually
by fiduciaries, corporations, associations, and partnerships* On July 1,
194-3, of a total public debt of two hundred fifty-two billion dollars over
fifty-three billion dollars was represented by savings bonds* 1/ It may
be anticipated that for a good many years to come almost every deceased
person* s estate will involve holdings in United States Savings Bonds*
Problems arising from these holdings should therefore be of interest to
most attorneys*
One of the first things that should be ascertained when the purchase of
any security is being considered, whether it is intended as a short-term
or a long-term investment, is the laws and regulations governing the issue
and use of the security*
LAWS M D REGULATIONS GOVERNING
UNITED STATES SAVINGS BONDS
You are all acquainted with the constitutional authority of the Congress
Daily Statement of the United States Treasury, July 1, 1943*
again a non-marketable bond was offered — one that would not be subject to
the -vagaries of speculation* To emphasize non-marketability and insulate
further against market fluctuations the new bonds were also made nontransferable and their use as collateral was prohibited. At the same time,
the bonds were made easily redeemable by their owners at fixed and readily
ascertainable values. The result was a security which was safe for the in
investor
experience^/jpc®c*SB©es* and which gave him a fair return at a rate based on the
length of time the bond was held. This latter feature furnished the incentive
to hold bonds to maturity. These bonds were first offered to the people of
the United States in 1935*
Although they have been known by many names since
that time — Baby Bonds, Defense Savings Bonds, War Savings Bonds, Security
Bonds, and United States Savings Bonds — they are all United States
Savings Bonds of Series A Id G, inclusive.
In the first few years following their offering savings bonds were not the
important factor in our economy which they are today. From 19 35 through 194-0
§it|| i
only three billion dollars of savings bonds were sold, but their use in bringwider
ing about a/wiriaesqprjesd distribution of the Public Debt of the United States and
universal
their/wide acceptance by both large and small investors has since resulted
in their becoming a vital part of the national economy. Between five and seven
- 2a this security a primary objective was to avoid a recurrence of one of
the unpleasant aftermaths of the first world war. Then you will recall
that many who had purchased Treasury bonds to help finance the war found
their bonds sinking well below par on the market.
happening
To prevent this from
2
and conditions affecting transfer by reason of death, termination of
trusts, oopporate succession, or other event. With this in mind, I
should like to discuss some of the salient features of savings bonds
■which should be considered in connection with their use in planning and
administering estates and trusts.
The importance of the part savings bonds play in the national
economy is well illustrated by a short review of the history of these
bonds.
In the early 1930's it trecame apparent that there was a place
in the savings and investment field for a Treasury security specially
designed for the small investor.
During and following World War I,
the Treasury Department had experience in the small investor field in
the sale of Liberty Bonds, war savings certificates, and Treasury savings
certificates.
The Post Office also had considerable experience in the
savings field through its issue of postal savings certificates.
Drawing
on and profiting from this backgrouhd and experience as well as that
of commercial institutions serving the small investor, a new Treasury
security was devised, particularly for the small investor.
In planning
Address by Thomas J. Lynch, General Counsel for the Department of the
Treasury, before the Real Property, Probate and Trust Law Section of
the American Bar Association at Seattle, Washington, on September 6,
1948.
LEGAL PROBLEMS AFFECTING THE USE OF SAVINGS BONDS IN
ESTATE AND TRUST PLANNING
I
welcome the opportunity to discuss with this group some cf the
legal problems relating to United States Savings Bonds.
The Treasury
Department has for many years, as you know, actively sponsored invest
ment in savings bonds in the conviction that the widest distribution of
the ownership of the public debt at all income levels serves both the
public interest in the soundness and stability of our fiscal structure
and the private interest of the investor in the quality and safety of
the security offered to him.
As part of this sponsorship we are anxious
that the investor in savings bonds be properly guided by knowledge of
the terms of the bonds and limitations which might affect the suitability
of investment for particular purposes.
In seeking to attain this objec
tive of an informed purchasing public, the legal profession can be
especially helpful in its wise counsel in relation both to factors
governing the appropriateness of original investment and the problems
TREASURY DEPARTMENT
In f o r m a t io n S e r v i c e
WASHINGTON, D .C .
TREASURY DEPARTMENT
Washington
The following address by Thomas J. Lynch, General Counsel for
the Department of the Treasury ^
scheduled for delivery
Law
before the Real Property, Probate an^Mlryjrty Sect ion of the
\s
American Bar Association, Seattle, Washington, at 2 p. m.
EDT, September 6, 1948, and is for release at that time.
TREASURY DEPARTMENT
■
Washington
(The folloiwing address by Thomas J, Lynch, General Counsel for
the Department of the Treasury, before the Real Property, .
Probate and Trust Law Section of the American Bar Association,
Seattle, Washington, is scheduled for delivery at 2;QQ PJvM.
P.D.T-. Monday. September 6. 19A8_. and is for release at that
time.)
LEGAL PROBLEMS AFFECTING THE USE OF SAVINGS BONDS IN
ESTATE AND TRUST PLANNING .
I •welcome the opportunity to discuss with this group some of the
legal problems relating to United States Savings Bonds, The Treasury
Department has for many years, as you know, actively sponsored invest
ment in savings bonds in the conviction that the widest distribution of
the ownership of the public debt at all,income levels- serves both the
public interest in the soundness and stability of our fiscal structure
and the private interest of the investor in the quality and safety of
the security offered to him. As part of this sponsorship we are anxious
that the investor in savings bonds be properly guided by knowledge of
the terms of the bonds and limitations which might affect the suitability
of investment for particular purposes. In seeking to attain this objec
tive of an informed purchasing public, the legal profession can be
especially helpful in its wise counsel in relation both to factors
governing the appropriateness of original investment and the problems
and conditions affecting transfer by reason of death, termination of
trusts, corporate succession, or other event. With this in mind, I
should like to discuss some of the salient features of savings bonds
which should be considered in connection with their use in planning and
administering estates and trusts.
The importance of the part savings bonds play in the national
economy is well illustrated by a short review of the history of these
bonds. In the early 1930*3 it became apparent that there was a place
in the savings and investment field for a Treasury security specially
designed for the small investor. During and following World War I,
the Treasury Department had experience in the small investor field in
the sale of liberty Bonds, war savings certificates, and Treasury savings
certificates. The Post Office also had considerable experience in the
savings field through its issue of postal savings certificates. Dramang
on and profiting from this background and experience as well as that
of commercial Institutions serving the small investor, a new Treasury
security was devised, particularly for the small investor. In planning
this security a primary objective was to avoid a recurrence of one of
the unpleasant aftermaths of the first World War, Then you will recall
that many who had purchased Treasury bonds to help finance the war found
their bonds sinking well below par on the market. To prevent this from
happening again a non—marketable bond w/as offered — one that would not
be subject to the vagaries of speculation. To emphasize non-marketability
■S-840
-
2
-
and insulate further against market fluctuations the new bonds were also
made non-transferabie and their use as collateral was prohibited* At the
same time, the bonds were made easily'redeemable by their owners at fixed
and readily ascertainable values* The result was-a security which Tías
safe for the inexperienced investor and vhich gave him a fair return at a
rate based on the length of time the bond Tías held* This latter feature
furnished the incentive to hold bonds to maturity* These bonds were first
offered to the people of the United States in 1935# Although they have
been known by many names since that time— * Baby Bonds, Defense Savings
Bonds, War Savings Bonds, Security Bonds, and United States Savings Bonds «
they are all United States Savings Bonds of Series A to G, inclusive*.
In the first few years following their offering savings bonds were
not the important factor in our economy which they are today. From 1935
through 1940 only three billion dollars of savings bonds were sold, but
their use in bringing about a wider distribution of the Public Debt of
the United States and their universal acceptance by both large and small
investors has since resulted in their becoming a vital part of the
national economy* Between five and seven million wage earners throughout
the United States purchase these bonds monthly through payroll allotments*
Over half a million other individuals, largely professional and business
men, purchase them regularly through their banks under the "Bond-A-Month11
plan* large amounts are purchased annually by fiduciaries, corporations,
associations, and partnerships* On July 1, 194-8, of a total public debt
of two hundred fifty-two billion dollars over fifty-three billion dollars
was represented by savings bonds* 1/ It may be anticipated that for a
good many years to come almost every deceased person*s estate will involve
holdings in United States Savings Bonds* Problems arising from these
holdings should therefore be of interest to most attorneys*
One of the first things that should be ascertained Then the purchase
of any security is being considered, whether it is intended as a short-—
term or a long-term investment, is the laws and regulations governing the
issue and use of the security*
LATÍS AND REGULATIONS GOVERNING
UNITED STATES SAVINGS BONDS
You are all acquainted with the constitutional authority of the Congress
to borrow money on the credit of the United States 2/, but it is possible
that many of you have not had immediate occasion to consider the authority
of the Secretary of the Treasury to issue United States Savings Bonds*
Under the authority given in the Constitution ¿/, the Congress, in 19353
passed Section 22 of the Second Liberty Bond Act*
This section has
1/
I/.
y
hj
Daily Statement of the United States Treasury, July 1, 1948*
Art* 1, Sec. 8. Cl* 2.
Art. 1, Soc. 8 j Cl. 18.
Feb* 4, 193 5, C5, Sec* 6, 4-9 Stat* 21 (found in its amended form in
U*S*C* 1946 ed*, Title 31^ 757c)* '
*
- 3 -
been slightly amended since that time, but the basic provisions have been
unchanged. It confers broad authority on the Secretary of the Treasury
to issue savings bonds in such manner and subject to such'terms and con
ditions , including restrictions on their transferability, as he may from
time to time prescribe. Pursuant to this authority the Secretary of the
Treasury offered United States Savings Bonds to the people of the United
States. The current offering circulars for these bonds are Department
Circular No. 653, Second Revision, as supplemented and amended ¿/, "which
offers Series E bonds, and Department Circular No. 654, Second Revision,
as amended 6/, which offers Series F and Series G bonds. These circulars
set forth the terms of the bonds and describe them "with particularity.
The general regulations currently in effect as to all United States
Savings Bonds are contained in Department Circular No. 530, Sixth Revision,
as amended. i/ I call your attention particularly to these Department
Circulars because under m o d e m decisions most of which follow the rea
soning of U.S. vs» BirdsaH 8/ and UJ5. vs, Janowitz 2/s the regulations
■which they contain are regarded as 11the supreme law of the land &
*
anything in the constitution or laws of any State to the contrary not
withstanding.n Tihile the regulations have been revised and amended
several times since originally promulgated, the changes have in general
been for the purpose of increasing the rights and benefits of the regis
tered owners.
It should be made clear at this point that this discussion is not
intended to cover the provisions of the circulars and regulations re
lating solely to United States Savings Bonds of Series A to D. Bonds of
these issues are outstanding in relatively small amounts and they are no
longer available for purchase. Accordingly, the discussion m i l be
limited in the main to savings bonds which are currently available. These
are Series E, F, and G.
COST OF UNITED STATES SAVINGS BONDS
AND' RATES OF INTEREST PAID
The terms upon which savings bonds may be purchased and the rate ,of
return are of primary interest to the investor. Most of you are aware of
the graduated nature of the return on these bonds so I will review those
provisions only briefly. Series E bonds are sold at a discount at 75 per
cent of their maturity value. They mature in 10 years, and if held to
maturity net 2.9 percent interest compounded semiannually; for shorter
periods the return is proportionately* less. 10/ Series F bonds are sold
at a discount at 74 percent of their maturity value.. They mature in 12 years,
5]
y
y
8/
2I
12/
3 supplements and one amendment.
3 amendments.
4 amendments .
233 U.S. 223.
257 U.S. 42.
Dept. d r . No, 653, Second Revision, Part II, Sec.
2é
- 4 -
and if held to maturity net 2 *53’percent interest compounded semiannually;
for shorter periods the return is proportionately less* 11/ Series G
bonds are sold at par and mature in 12 years * Interest is paid at the
rate of 2*5 percent semiannually* If G bonds are held to maturity this
interest constitutes a net return; if redeemed before maturity, except
under special circumstances -which make them subject to par payment, they
will be redeemed at fixed amounts less than par, the difference between
the amount paid and par constituting an adjustment of the interest paid
in relation to the time the bonds have been outstanding* ¿2/.
LDHTAÏIOH ON HOLDINGS
There is a limitation on the amount of savings bonds of the various
series which an owner may have issued to him during any one calendar
year* The existing limitation for savings bonds of Series E is $10,000
(maturity value) on original issue for each calendar year* The limita
tion per calendar year on original issue of savings bonds of Series F or
G is $100,000 (issue price) of either series or of the combined aggregate
of both* The words ”original issue” as used here are in contradistinction
to bonds acquired by reason of the death of another, the termination of a
trust, or the happening of any other event within the meaning of the
regulations* For example, John Jones who has purchased savings bonds of
Series E, F,and G, up to the limit for the year 1948, would not acquire
an excess by reason of the death of Mrs * Ella S* Jones leaving him bonds
registered in her name alone or in her name payable on death to him up
to the limit in Series E, F, and G 1948, Under the regulations bonds so
acquired are not included in computing a person*s holdings, and John Jones
would of course be entitled to have such bonds reissued in his name with
out regard to the limit*. nThe happening of an event” vhich would exclude
the application of the limitation, as those words are used here, would
include suecessorship, for example. In brief, X Corporation having
absorbed and continued the business activities of Y Corporation would be
entitled to acquire and to have reissued in its name any bonds of
Series F and G held by Y up to the limit, even through X itself already
held the limit in bonds of the same series issued in the same calendar
year*
The method of computing holdings of coowners, for the purposes of
the limitation in holdings, varies as between Series E bonds, on the one
hand, and Series F and G bonds, on the other* In the case of bonds of
Series E, bonds registered in coownership form may be applied to the
holdings of either or may be apportioned between them, but will not be
applied to both, whereas bonds of Series F and G registered in co owners hip
form are charged in full to both coowners* In other words, John Jones
and his wife, Ella, could buy $20,000 (maturity value) of savings bonds
°f Series E-1948 in their names in coownership without exceeding the
limit, but if they bought savings bonds of Series F and G 1948 in the
11/
12/
Dept* d r * No* 654, Second Revision, Part II, Sec* 2 and 3*
Dept* Cir* No* 654, Second Revision, Part II, Sec* 2 and 4»
5
amount of $200,000 (issue price) in their names in coownership form, they
would have an excess. In the case, of all three series, the method of com
puting coownership holdings does riot depend on the source of the money
used to purchase the bqnds, the order in which the eoowners are named,
physical possession or relationship (as such) between the parties.
Under the regulations an excess must be 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. In many instances adjustments of an excess will involve
no loss of investment yield, or very little. For example, the $200,000
(issue price) of Series F and G bonds which John and Ella purchased
during 194-8, can be adjusted by reissuing one*-half the amount in the
name of John payable on death to Ella and the other half in the name of
Ella payable on death to John, The reissued bonds would bear the same
issue dates as the originals.
The regulations governing the limitation are set forth in full in
Subpart C of Department Circular No, 530, Sixth Revision, as amended,
A word as to the reason for these limitations. Savings bonds of
Series E were designed primarily to attract investors with relatively
small means, A limitation was, therefore, established so that large
concentrations would not be made in the hands of a relatively small
number of individuals. The undesirability of large concentrations in
the case of Series E, F, and G,‘ should be apparent in view of the fact
that savings bonds are virtually demand obligations.
FORMS AND EFFECTS OF REGISTRATION
It is very important that a security be obtained in a form that w i l l .
achieve the purpose for which it is purchased, Since savings bonds are
issued only in registered form 13/ the forms of registration permitted
and the effect of each form of registration are important.
For natural persons in their owm right, savings bonds of Series E
are available in three, and only three, forms of registration? single
named owner form — "John A, Jones"; beneficiary form — "John A, Jones
payable on death to Mrs, Ella S, Jones"; and coowiner. form — "John A,
Jones or Mrs, Ella S, Jones", v J Bonds of Series F and G are available
in the above forms of registration and in addition may be registered in
the names of persons acting in a fiduciary capacity (such as guardians,
trustees, etc,), and in the name of a corporation, a partnership, or an
unincorporated association, 15/ but the beneficiary and coowner forms may
not be used unless all persons named in the registration are natural persons
in their own right.
i2/
UJ
11/
Dept, Cir, No,
Dept, Cir, No,
jjgPjV gf-r. No,
Dept, Car, No.
Dept, Cir, No,
Dept, Cir, No,
Dept, d r . No.
653,
654.,
530,
653Î
654-»
530,
530'
Second Revision, Part II, Sec,
Second Revision, Part II, Sec,
Sixth Revision, Sec, 315«2
Second Revision, Part V,
Second Revision, Part V,
Sixth Revision, Sec, 315*4*
Sixth Revision; Sec, 315*5*
Bonds of Series F and G registered in the name of a trustee (whether
an individual or a corporation) may be reissued in the name of succeeding
trustees whether the trust was established by will, declaration, or other
wise, 16 / and upon the termination of the trust may be reissued in the
name of the person, or persons, Entitled to the assets thereof, 17/
Reissue is, of course, allowed in the case of merger, consolidation, or
dissolution 18/ of corporations, partnerships, and unincorporated associa
tions,
'
*
SINGLE NAMED OWNER FORK (INDIVIDUAL)
The first form, single named owner, is the simplest form in many
respects; it permits the registered owner the greatest latitude in handling
his bonds after purchase. If a purchaser has bonds issued in his own
name it is possible for him to have them reissued at a later date naming
another natural person as coowner or beneficiary, If they are of Series
F or G he may also have them reissued in the name of a trustee of a living
trust created by him for his benefit in whole or in part during his life
time , 12 / while a testamentary trust may become entitled to Series E
bonds, they may not be reissued in the name of the trustee. Upon the
death of the registered owner, bonds in single named owner form belong
to his estate, It is well to keep in mind that they may be redeemed by
the executor or administrator of the estate or they may pass by will or
by laws of descent and distribution0 A, person who thus becomes entitled
to bonds may have them reissued in his name alone or with a co owner or
beneficiary and the reissued bonds will be dated as of the original date
of issue, 20 /
If a purchaser desires to make a gift of the bonds ho may have them
registered in the name of the donee when purchased. Such registration
vests title to the bonds in the donee, 2 1 /
Single named owner bonds do not complicate the distribution of the
property of a decedent; in many cases they simplify it. Unless the laws
of the jurisdiction in which the decedent was domiciled require it, it is
not necessary to establish title to savings bonds by administration of the
estate. Even if administration is required by local law; the Treasury will
make payment on bonds without it if the value of the bonds is $250 maturity
value or less or the estate under $500,. In lieu of administration a fairly
simple form may be filed with the Department setting out the facts con
cerning the estate of the decedent and the rights of the parties claiming
the bonds, 22 /
16/
12/
18/
19/
20/
Dept,
Dept.
Dept,
Dept,
Dept,
Cir,
Cir,
Cir,
Cir,
Cir,
O'] /
21/
22/
-n * ^ y * Cir,
f f *
Dept,
No, 530, Sixth Revision, Sec*.315*2,
Dept, Cir, No, 530, Sixth Revision, First Amendment, Sec, 315*4-7,
No,
No,
No,
No,
No,
530,
530,
530,
530,
530,
Sixth
Sixth
Sixth
Sixth
Sixth
Revision,
Revision,
Revision,
Revision,
Revision,
.Sec, 315«49,
First Amendment, Sec, 315,50 (a) (b)
Sec, 315*56,;
Sec, 315*32 and 315*44*
First Amendment, Secs, 315*36 and
7-
BENEFICT.ARY FORM OF PECSSTRATION
The beneficiary form of registration, that is, “John Smith payable
on death to Ellen Smith", does not give the purchaser or registered owner
quite as free a hand in his use of the bonds after purchase as the single
named owner form. Under the regulations, although the owner may redeem
the bonds at his option, he may not eliminate or change the beneficiary
at m i l . These bonds may be reissued, however, to name the beneficiary
as coowner, If the beneficiary predeceased the registered owner or if
the beneficiary consents, the bonds may be reissued in the same manner as
single named owner bonds, 23/ Upon the death of the registered owner a
surviving beneficiary becomes entitled to the savings bonds^as sole owner,
2 lJ The effects of this form of registration as set forth in the Depart
ments regulations have been variously attacked as contravening the local
laws of testamentary disposition, the laws of descent and distribution
and the law of gifts. However, the effectiveness of the Treasury regula
tions has been quite generally recognized b^ the courts, both state and
federal. The few decisions in State courts to the contrary, the first
of which was Decker v s . Fowler in the Washington courts
have been
negatived by the legislatures of those States through the passage of
statutes specifically recognizing the effect of this form of registra
tion, 2.
6/
COOTJNER FORM OF REGISTRATION,
Of the three permitted forms, bonds registered
that is, "John Smith or Ellen Smith", are the least
conditions. In many cases, however, they will meet
purchaser more exactly than either of the two forms
in coownership form,
adaptable uo^changing
the wishes ox the
already discussed.
Bonds registered in this form may be redeemed upon presentation by either
coownerj upon the death of one coowner they become the soj.c and absolute
property of the survivor, 27/ The effectiveness of this form of registra
tion has also been generally recognized by the various courts vvhich have
considered the matter,
Co ownership bonds may be reissued to eliminate the name of a living
coowner in three casess (l) where a coowner marries and tne otner co owner
consents to reissue in order to substitute the new spouse as coowner or
beneficiary3 (2 ) where coowners have been divorced and a property settle
ment incorporated in the decree or ratified by the decree^ awards the bonds
to one of the coowners3 and (3) where, in the case of Series l1 or G bonas,
22/
24/
2¿/
26/
22/
Dept, Cir, No, 530, Sixth Revision, Sec, 315«32 and 315,4c (b),
Dept, Cir, No, 530. Sixth Revision, Sec, 315*46.(c).
92 Pac, 2nd 254 .
* _
. . p
Q
Statement of the Treasury Department on the rights ox Surviving Coowners
and Beneficiaries of Savings Bonds, which is appended hereto,
Dept, Cir, No, 530, Sixth Revision, Sec, 315.45 (<0*
the coowners create a living trust for the benefit of both in whole or in
part during their lifetime and reissue in the name of the trustee is
desired* 28/ These provisions add some flexibility to the coownership
form of registration.
PAR PAYMENT OF SERIES G BONDS
One feature of Series G bonds merits special consideration. This is
the provision for optional redemption at par upon the death of an owner
or coowner, if a natural person, or upon the termination by reason of the
death of an individual of a trust or fiduciary estate which holds the
bonds. 29/ This is a very unusual and liberal feature for any security
to possess. Consequently, certain limitations were imposed. To take
advantage of the provision for payment at par before maturity, the per
son entitled to receive payment must, within six months of the death of
the registered owner, coowner, or person whose death terminated the
fiduciary estate, give to a Federal Reserve Bank or the Treasury Depart
ment1^ Division of loans and Currency in Chicago, notice in writing of
his intention to redeem at par. ¿ 0/ The bonds need not be submitted
with this notice, but they must be submitted, together with the required
proof of .death, to the office to which notice was given not later than
the last day of the month preceding by one calendar month the date on which
payment is desired. It is not required that the bonds be submitted vath
the notice for the person entitled to payment has an option to delay
redemption until the date of the second interest payment after the death
which made redemption possible. The time for giving notice of intention
to redeem at par may be extended by the Department in certain cases where
it was impossible to give notice. For example, if there has been litiga
tion which delayed the appointment of an executor or administrator the
time for giving notice will ordinarily be extended to six months from the
date of appointment of the executor or administrator.
There is a
bonds held by a
an individual.
be made of only
trust. 31/
further restriction applying only to the par payment of
trust or fiduciary7- estate that is terminated by death of
If the trust is terminated only in part, par payment will
a proportionate part of the Series G bonds held by the
Uhile this provision may be advantageous in some instances, it should
not be forgotten that Series G bonds belonging to an estate or a trust may
be reissued in the names of the heirs or other persons ultimately entitled
with the original dating and may be held by them to maturity without any
loss of interest yield.
22/
22/
22/
a/
Dept.
Dept.
Dept.
Dept.
Cir.
Cir.
Cir.
Cir.
No,.
No..
No.
No*
530,
654j
530,
530,
Sixth Revision, Sec. 315*45 (b) (3),
Second Revision, Part II, Sec. 4*
Sixth Revision, First Amendment, Sec. 315*23 (c),.
Sixth Revision, First Amendment, Sec. 315.23 (c).
c
- 9 -
TAX STATUS OF UNITED STATES SAVINGS BONDS
Savings bonds of Series E, F, and G, and the interest paid upon them
are not subject to taxes imposed on principal or interest by any State or
possession of the United States or by any local taxing authority* They
are not, however, exempt, from gift, estate, and inheritance taxes, and
the interest paid on them is not exempt from federal income taxes * 32 /
Consequently," the effect of each of the three forms of registration upon
tax liabilities is of interest.
EXAMPLES OF GIFT TAX AND ESTATE TAX APPLICATION
A few examples should serve to illustrate. These examples, I should
make it clear, involve only Federal taxes. Tax liability under the laws
of the various States may be quite different. Bonds purchased by A and
registered in A*s name alone involve no gift tax problem; they involve
exactly the same estate and inheritance tax problems as any other property
upon the death of A* Bonds purchased by A and registered gratuitously in
B*s name alone, constitute a gift during the year purchased; the cost of
the bonds must be considered in deteimining A*s gift tax liability for
that year'. Bonds purchased by A and registered in A* s name, payable on
death to B, involve no gift tax problem, but on A*s death their entire
redemption value (this would be the par value of G bonds) would form a
part of his gross estate for tax purposes. Bonds purejiased by A and
registered gratuitously in B*s name, payable on death to A, constitute
a gift to B during the year purchased and the cost of the bonds must be
considered in determining A*s gift tax liability for that year. Upon
B*s death the entire redemption value would form a part of B*s gross estate
for estate tax purposes'. Of course if B*s death occurs Yjithin five years
of the gift of the bonds a deduction equal to the amount of the property
previously taxed yd.ll be permitted. Bonds purchased by A and registered
gratuitously in B*'s name, payable on death to C, constitute a gift to
B during the year purchased; the cost of the bonds must be considered in
determining A*s gift tax liability for that year. Upon B*s death the
entire redemption value would form e. part of B*s gross estate for tax
purposes. The deduction for property previously taxed would also be
allowed here if applicable. Bonds purchased by A and registered gra
tuitously in the form **A or Bn present no gift tax problem unless and until
A gratuitously permits B to redeem the bonds and retain the redemption value *
Mien this occurs the redemption value must be considered in determining
A*s gift tax liability for that year. On A !s death the entire redemption
value of bonds still outstanding in this form would constitute a part of
his gross estate for tax purposes. Bonds purchased by A and registered
gratuitously in the form nB or C1{ constitute a gift and upon the death of
either B or C one-half of the redemption value would form a part of the
decedent* s gross estate for tax purposes. 33/
32/
33/
Dept. Cir. No, 653, Second
Dept. Cir, No. 654, Second
Com, ‘Mimeograph, Coll. No.
Commissioner of Internal
Revision, Part II, Sec, 4,
Revision, Part II, Sec, 7.
5202, R. A. No, 1128, Office of the
Revenue, June 14> 1941*
INCOME TAX STATUS OF THE INTEREST
ON UNITED STATES SAVINGS BONDS
Problems involving income taxes on the interest 'On savings bonds are
fairly simple* In the case of Series E and F bonds which are issued at a
discount, the increment in value is taxable interest income* If the tax
payer is on the accrual basis, interest is income as it accrues* If the
taxpayer is on the cash basis, the interest may be reported each year as
accrued (as shown in the table on the bonds), or it may all be reported
when the bonds mature or when they are redeemed* Once the taxpayer has
elected to report the interest as it accrues, however, he cannot change
to the cash basis without the permission of the Commissioner of Internal
Revenue* Interest on Series G bonds may be included in gross income
either when received or as it accrues, depending upon the taxpayers
method of accounting* The interest accrues when it becomes payable, but
not until then* Under the terms of issue the redemption value of Series
G bonds prior to maturity, except in certain cases upon death, is less
than the purchase price; technically, this difference is a refund in
part of interest previously paid or accrued* Upon redemption before
maturity no adjustment can be. made in any year for realised interest, but
in the year of redemption the difference between the redemption value and
the purchase price is deductible as ordinary loss incurred in a transaction
entered into for profit*
It is not likely that it vail ever be a real problem which of two
taxpayers is required to report the.interest on United States Savings
Bonds* Tihen bonds are registered, in the names of two persons as coowners,
interest is income to the person who contributed the purchase price* If
the purchase price is contributed by both, interest is income to both in
proportion to their contributions'* If the bonds were a gift to both
coowners, interest is income to each of them in equal amounts* For taxa
ble years beginning after December 1, 194-0, regardless of the issue date
of the bonds, a trustee may elect to treat the annual increment in value
of savings bonds held in trust as taxable income* If that election is
made, the increment is taxable to the beneficiary, if distributable to him
under Section 162 of the Internal Revenue Code* Income from interest on
savings bonds is, of course, eligible for the nsplit—income11 treatment
provided by the Revenue Act of 194-8*
MARITAL DEDUCTION PROVISIONS OF REVENUE ACT OF 194.8
The Revenue Act of 194-8 introduced a new concept into estate and
gift tax laws; that is, the marital deduction* This marital deduction
has the same effect when gifts are made of savings bonds as it has when
gifts are made of other property* It seems advisable, however, to call
to your attention some of the provisions of the Act* In general, the Act
authorizes the deduction from the gross estate of an amount equal to the
value of certain property interests passing to the decedent1s surviving
spouse, not to exceed one^half of the adjusted gross estate; it authorizes
tdie deduction of one-half of the value of any gift of .an interest in noncommunity property made by any person to his spouse; and it authorizes
-
11
-
spouses to Gleet to treat any gift of an interest in property to a third
person as made one—half by each spouse. These provisions apply to
savings bonds just the same as they do to any property*
FACILITIES THROUGH
UNITED STATES
SAVINGS BONDS MAY BE PURCHASED
The Treasury Department has tried in every -way possible to make these
bonds readily available to the small investor. To accomplish this it has
authorized many agencies to issue Series E bonds. At the present time it
is possible to purchase Series E bonds from the Treasurer of the United
States, Federal Reserve Banks or Branches, most United States Post Offices<
most incorporated banks, trust companies, mutual savings banks. Federal
savings and loan associations, and many industrial and commercial firms.
34./ They may be purchased through payroll deduction plans by v/age earners
or through local banks and trust companies by professional and business
men under the «Bond-A-Month" plan. Series F and Series G bonds may be
purchased from the Treasurer of the United States or the Federal Reserve
Banks and Branches, and applications for the purchase of these bonds may
be sent through the agencies authorized to issue Series E bonds which I
have mentioned. 35/
FACILITIES THROUGH THICK UNITED STATES SAVINGS
BONDS HAY BE REDEEMED OR REISSUED
Not only has the Treasury Department made it easy for the public to
buy these bonds, but the Treasury*s Bureau of the Public Debt has expanded
its facilities in connection with the savings bond program and is doing
all in its power to serve the savings bond holding public. To bring
these services closer to the individuals the majority of the banks, trust
companies, mutual savings banks, and Federal savings and loan associations
have been authorized to redeem Series E bonds for the registered owners,
and Federal Reserve Banks have been authorized to handle a large number
of the redemption and reissue transactions that arise in connection with
savings bonds of Series F and G as well as Scries E. The Bureau of the
Public Debt has also established an office in Chicago, which handles most
of the transactions involving savings bonds.
HQT7 TO OBTAIN BEST RESULTS FROM FACILITIES AVMLABIE
These facilities are designed to serve you. I might make these sug
gestions on hcp'vv they may serve you best. If you are in or near a city with
a Federal Reserve Bank or Branch you should take a United States Savings
34/
¿2/
Dept. cir. No. 6j>3, Second Revision, Part III.'
Dept. cir. No. 654, Second Revision, Part III,
4? ' ■
-
12
-
Bonds problem first to the Baric*s officer who handles savings bond trans
actions, If the Federal Reserve Bank is authorized to handle the trans
action the officer to .11 advise you how the matter may be handled. If
the Federal Reserve Bank Is not authorized to handle your particular
problem, the officer m i l either submit it to the Chicago Branch of the
Bureau of the Public Debt or m i l advise you to do so* If you are not
near a Federal Reserve Bonk or Branch, the problem should be submitted to
the Chicago Branch, ¿6/ where, unless it is a rather unusual .transaction,
the entire matter can be handled. If you are in or near Chicago or
Washington, it may be convenient for you to consult directly either the
Chicago Branch or the main office of the Bureau in Washington, There is
one type of case which should be referred directly to the main office in
any event. That is the occasional co.se still e.rising in which an attempt
is made to defeat the rights of a surviving coowner or beneficiary, ^ When
this occurs, particularly if it appears there will be litigation, the
Bureau would appreci-ate having the matter referred directly to the
Commissi oner *s office. That office will be glad to supply you with a
statement of the Department*s position and citations to the cases that
have been decided on the questions involved, 37/ If the ca.se Involves
important questions arrangements m i l be made for presentation of the
Treasury Department*s position to the court by the Department of Justice,
The Department Circulars containing the regulations governing United
States Savings Bonds that I mentioned earlier — that is, Department Circu
lar No, 653, as revised, amended, and supplemented, Department Circular
No, 654, as revised and amended, and Department Circular No, 530, as
revised and amended — may be obtained through the Federal Reserve Banks
and Branches, the Chica.go Branch of the Bureau of the Public Debt, or the
Bureau of the Public Debt in Washington, Any of these offices will be
glad to mail the circulars to you upon request. Information on the
application of the Federal income, estate, and gift taxes to United
States Savings Bonds may be obtained from the Office of the Commissioner
of Internal Revenue in Washington or from your local Collector of Internal
Revenue ,
36/
Bureau of the Public Debt, Merchandise Mart, Chicago 54, Illinois,
37/ Statement of the Treasury Department on the Rights of Surviving
Coowners and Beneficiaries of Savings Bonds, July 5^ 1945
the appendix hereto*.
STATEMENT OF THE TREASURY DEPARTMENT
ON THE RIGHTS OF SURVIVING COOWNERS AND BENEFICIARIES OF SAVINGS BONDS.*
The Treasury regulations provide that surviving -.coowners and
beneficiaries^ are entitled to sole and absolute ownership of savings
bonds and that judicial proceedings which would defeat or irnpair those
rights will not be recognized. These regulations, promulgated m
pursuant to Section 22(a) of the Second Liberty Bond Act, have been m
effect, with minor changes, ever since. In so far as the rights of ^
coowners and beneficiaries are concerned, they were based on very sim
ilar regulations governing the issuance of War Savings Certificates
during the first world ?/ar, which had been tested in. the courts and
uniformly upheld. 1/ Those certificates were issued under the authority
of 3 l T X c ! , Section 757, 40 Stat. 291, which provides in part '»Such
war savings certificates shall be in such form or forms and subject to
such terms and conditions, and may have such provisions .for payment
thereof before maturity, as the Secretary of the Treasury may prescribe.
2/
The Department’s position on the savings bond question is that the
rights of surviving coowners and beneficiaries to sole and absolute
ownership, established by the regulations, which.are incorporated by
reference in the text of the bonds, are exclusively matters of Federal
law and contract (Ruddy v. Rossi (1913), 243 U.S. 104), arising in the^
exercise of the borrowing power granted to the Government by the Consti
tution (McCulloch v. Maryland (1819), 4 Wheat. 313, 411-15, 421).
Under the Constitution the Government has the power to borrow money
on the credit of the United States (Art, I, Sec. 8, Cl. 2) and to make
all laws which shall be necessary and proper for carrying that power
into effect (ibid. Cl. 18). Section 22(a) of the Second Liberty Bond
Act, pursuant to which savings bonds are issued, provides in part that
savings bonds shall be issued "in such manner and subject to such terms
and c©nditions .... including any restrictions on their transfer, as the
x The term "savings bonds" as used herein signifies all United States
Savings Bonds of whatever series, including those referred to as Defense
Savings Bonds and as War Savings Bonds.
1/ Warren v,. United States (1929), 68 Ct. Cls. 634 (cert, denied 50 Sup.
CtT 346, 281 U.S. 739): United States v. Janowitz (1921) 257 U.S. 42, and
United States v. Sacks (1921), 257 U.S. 37.
2/ Compare with the savings bond statute quoted in part in the third
paragraph hereof.
-2 Secretary of the Treasury may from time to time prescribe.” 3/ No
contention has ever been made that the regulations promulgated by the
Secretary under that section are in excess of the authority therein
conferred on him, and, in view of the broad statutory terms used, no
such argument could be sustained.
Therefore, the regulations governing savings bonds are a valid
exercise of the Federal borrowing power, have the force and effect of
Federal law (United States v. Birdsall (1914), 233 U.S. 223; United
States v. Janowitz (1921), 257 U.S. 42), and by virtue of Article VI,
Cl. 2, of the Constitution are Mthe supreme law of the land” by which
the "judges in every state shall be bound
anything in the Consti
tution or laws of any state to the contrary notwithstanding.” It
follows that state laws, as for example, the law of wills or of in
testate succession, or laws governing given forms of tenancy/ or the
common law related to delivery in the case of gifts, have no bearing
whatsoever on the problem and that judicial decisions based thereon are
in derogation of the supreme law of the land.
Almost without exception, courts throughout the country have been
sustaining as matters of Federal law and contract the rights of surviv
ing beneficiaries and coowners established by the savings bond regula
tions. Decisions in the following states have held that estates of
deceased owners or coowners have no right, title or interest in the
bonds when there is a surviving beneficiary or coowner: Arkansas,
California, Colorado, Florida, Illinois, Iewa, Louisiana, Maine,
Massachusetts, Michigan,■Missouri, Montana, Nebraska, Nevada,
New Jersey,.Nevi York, North Carolina, Ohio, Oklahoma, Pennsylvania,
Texas and Wisconsin. 4/ The decisions were handed down by the highest
State court in the following states: Arkansas, Colorado, Florida,
Iowa, Maine, Nevada, North Carolina, Ohio and Texas.
The cases of Decker v.■Fowler (Wash., 1939)* 92 P. (2d) 254* and
Deyo v. Adams (NTX.> 1942), 3&N/Y.S. (2d) 734* which refused,to uphold
the rights of surviving beneficiaries, have been severely criticised by
a number of courts 5/ and by other noted authorities, and have been'
repudiated by the Legislatures of their respective states in statutes
adopting the language of the Federal, regulations and confirming the
3/ Section 22(a) was amended by the Public Debt Act of 1941 (55 St at-, 7*
U.S.C. 1946 Ed., title 31, sec. 757c).
kf
The appendix to this statement contains a complete table of cases.
5/. Neyo v. Adams has been criticized even by courts in the same state.
For example, see Mr. Surrogate Foley’s opinion in In re Deyo’s Estate,
which is cited in the appendix to this statement.
rights of surviving coowners and beneficiaries, 6/ The erroneous
reasoning of the Decker case is sharply pointed out in 139 A.L.R. 967*
in 14 Wash* Law Rev, 312 (1939)» suggesting that it is as unconstitu
tional as it is erroneous, and in 27 Minn* Law Rev. 401 (1943)* char
acterizing it - and incidentally the Deyo opinion which followed it as npoor law". In brief, both cases have been thoroughly discredited.
Moreover, Deyo v. Adams had little, if any, value as a precedent
to begin with, for the opinion was handed down not on the merits, but
on a motion to dismiss for insufficiency of complaint and, over ob
jection that the interlocutory decision was the law of the case, the
court nevertheless granted the Government *s motion for leave to par
ticipate by way of a Suggestion of the Interest of the United States.
Th<£ Government filed its Suggestion of the Interest of the United
States in order to get a decision on the merits but, for reasons not
within its control, there were numerous delays. On pages 332 and 333
of his opinion in In re Deyo’s Estate, lir. Surrogate Foley commented
on this, stating that the facts set forth "clearly show« that the
responsibility for the unjustifiable delay in the disposition of the
question fef ownership of the bonds rests wholly with the executrix."
Finally the action was discontinued by stipulation of the parties
and the bonds were paid to the beneficiary, Mrs. Adams.
It is quite clear then that the opposing decisions carry no weight
as judicial authorities and that the overwhelming majority of cases
which have arisen in the courts have sustained the Government’s position
that surviving beneficiaries and coowners of savings bonds are the sole
and absolute owners of such securities and that decedents’ estates in
such cases have no right, title or interest in the bonds.
Washington, August
31* 1943, second revision.
6/ lash. Rev. Stat. (Remington’s Supp. 1943)* Secs. 11543—60, 6l, and
40 McKinney’s Consol. Laws of New York, Ann. (Supp. 1943), Sec. 24.
California, and Illinois have enacted similar legislation. See Sec. 704,
Civil Code, added by the laws of 1943* and Ch. 76, Sec. 2, as amended,
Smith-Hurd Illinois Annotated Statutes, respectively.
NOTE: In view of its opinion that-the rights of surviving coowners
and beneficiaries of savings bonds rest firmly on the constitutional
power of the. Federal Government to borrow money on the credit of the
United States and to enact all laws necessary to the effective exer
cise of that power, the Treasury Department has never requested or
urged state legislation on the subject although undoubtedly statutes
such as those which have been enacted in California, Illinois Fmv York and
Washington are helpful in preventing litigation in those states.
APPENDIX
Below is a table,, of cases 1/ in which tho courts have held that
decedents' estates have no right, titie or interest in savings bonds
when there is a surviving beneficiary "or coowner«. One asterisk before
the name of a case signifies that the bonds involved therein-were in
coownership form. Two asterisks before the name of a case mean that
some of the bonds involved were in the" coownership form and others in
the beneficiary form of registration, The other eases deal entirely
with rights of surviving beneficiaries.
It should be kept in mind that cases involving rights of survive
ing beneficiaries may be cited in support of the rights of surviving
coownebs of savings bonds, and vice versa, because the right of sur
vivorship in each case is identical and the courts have uniformly
based their decisions on considerations of contract. Unreported cases
are cited in the table because most of them have been decided in pro
bate courts and, since they deal with decedents' estates, their opin
ion that the bonds do not constitute part of the estate when there is
a surviving beneficiary or coowner should receive great weight.
TABLE OF CASES
Myers v. Hardin (Ark. S. Ct. 1945) 186 S.W, (2d) 925
-ft Conrad v.x Conrad (Calif. 1944) 152 P. (2d) 221
Klenck y. Crocker First National Bank (Mo. 294,300,
Superior Ct., San Francisco Co., Calif., 1942)
'■ft In re Stanley's Estate (Colo, S. Ct. 1938) 80 P. (2d) 379
Matilda Mason v. H, G. Briley (Fla. S. Ct. 1945)
21 So. (2d) 595
yft In re Estate of August P. Ohlin (No. 43-C-270, Circuit Ct,,.
Cook Co., 111., 1943)
In re Estate of Orson S. Killick (Circuit Ct., Cook Co,, 111,,
Jan, 12, 1944)
ft. In re Estate of Clara Courtney' (Probate No..4916, Dist, Ct.
for Fayette Co,, la., 1944)
In re Estate of Emma C.~ Logan (No. 19,710, Dist. Ct. for
Scott Co., la., 1944)
•ft In re Murray's Estate (Iowa S. Ct. 1945) 20 N .■>J. (2d) 49
■ft Succession of Tanner (La. Ct. of Appeals 1946) 24 So, (2d) 642
Harvey v, Rackliffe (Me. S. Ct. 1945) 41 A. (2d) 455
•ft Josephine Holden Murdock v, Ina M. Spencer (Norfolk Probate.
No.. 112529, Mass. June 1947)
2/
1/ See also Warren v. United States, cited in footnote 1, page 1 of
the Statement. The Warren case involved Treasury War Savings Certifi
cates inscribed "A, payable on death to Bn.
2/ Cf, -"-Succession of Ceagan (La. S. Ct. 1947) 33 So, (2d) 118
APPENDIX (Confò.) - Page 2
Charlton v. Charlton (No. 40,777, Circuit Ct. for Kent Co.,
Mich,, 1938)
Alda Groce Cox v. Federal Reserve Bank of St. Louis and
Monzel G. Evans, Admx. (Civil No. 2519, Dist. Ct. of U.S.,
E. D,, Mo., June 1944v
Kate Farrell v. »H. J. Coleman (Dist. Ct. for Xellowstone Co.,
13th Dist., Mont., April 27, 1942)
In re Estate of Anna Donohoe (Probate No. 3323, Holt County,
Nebr., 1947)
Stephens v. First National Bank of Nevada, August A. Glanzmann
Admr. (Nevada S. Ct.1940)
Franklin Washington Trust Co. v. BeItram (N.J. 1943)
29 A. (2d) 854"
Reynolds v. Danko (N.J. 1944) 36 A. (2d) 420
In re Estate of Andrew S. Levy (Orphans Ct,, Camden Co.,
N.J., March 10, 1944)
In re Deyo’s Estate (N.Y, 1943) 42 N.Y.S. (2d) 379
In re Willoughby’s Will (N.Y. 1943} 45 N.Y.S, (2d) 177
In re Hager’s Estate (N.Y. 1943) 45 N.Y.S. (2dj 4-68
Commercial National Bank, Exr. v. Frederickson (No. Car,
.S. Ct. June 6, 1945)-34 S.E. (2d) 402
Ervin v. Conn (No. Car. S, Ct. June 6, 1945) 34 S.E. (2d) 402;
14 U,S. Law Week 2011
Laufersweilor v. Richmond (Ohio 1942) 22 Ohio Op, 265
In re Estate of Louis Di Santo (Ohio S. Ct, 1943)
51 N.E. (2d) 639
Estate of Agnes Mellott Dockhorn (No. 1577-D Co, Ct, Garvin
Co., Okla,, 1945)
United States v. Dauphin Deposit Trust Co, (M. D., Pa. 1943)
50 F. Supp. 73
Mitchell v. Edds (Tex. S. Ct. 1945) 1&4 S.W. (2d) 823
In re Will of Celia Breslauer (No. 233-559, Milwaukee Co.,
: T\Tis., Nov. 1, 1944)
■
Mj)
/
TREASURY DEPARTMENT
In fo r m a tio n S e r v i c e
RELEASE* H O MING NEWSPAPERS*
Wednesday* September 1, 19U6.
WASHINGTON, D .C .
No. S-841
Secretary of the Treasury Snyder today announced the offering* through
the Federal Reserve Banks* of 1-3/8 percent Treasury Notes,of Series A-1950,
opBii on e h exchange "basis ^ pan ion pan* to holdens ox 1—1/2 pencent Tneasuny
Notes of Series A-19U3* in the amount of $3>7U75702*000* which will mature on
September 1$* 19 I4.8 . Cash subscriptions will not be received.
The notes now‘offered will be dated September 13>* 19U8* and will bear
interest from that date at the rate of 1-3/8 percent per annum* payable on a
semiannual basis on April X and October 1* 19U95 and April 1, 195©. They will
mature April 1* 19p0. They will be issued in bearer form only* in denomina
tions of |1*000* $$*000* 110*000* $100*000 and $1*000*000.
Pursuant to the provisions of the Public Debt Act of 19Ulj as amended*
interest upon the notes 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 cir
cular released today.
Subscriptions will be received at the Federal Reserve Banks and Branches*
and at the Treasury Department* Tfashington* and should be accompanied by a
like face amount of the maturing notes. Subject to the usual reservations,
all subscriptions will'be allotted in full.
The subscription books will close for the receipt of all subscriptions at
the close of business Friday* September 3.
Subscriptions addressed to a Federal Reserve Bank or Branch or to the
Treasury Department* and placed in the mail before midnight September 3j> will
be considered as having been entered before the close of the subscription
books.
The text of the» official circular follows;
UNITED STATES OF AMERICA
1-3/8 PERCENT TREASURY NOTES OF SERIES A-19^0
Dated and bearing interest from September l£, 19U8
Due April 1* 19^0
D1
TREASURY DEPARTMENT,
Office of the Secretary,
Washington, September 1, 19U8.
19U8
Department Circular No. 83U
Fiscal Service
Bureau of the Public Debt
I,
OFFERING OF NOTES
1. The Secretary of the Treasury, pursuant to the authority of the Second
Liberty Bond Act, as amended, invites subscriptions, at par, from the people of
the United States for notes of the United States, designated 1-3/8 percent
Treasury Notes of Series A-19^0, in exchange for 1-1/2 percent Treasury Notes of
Series A-19U8, maturing September V~>} 19U8.
II,
DESCRIPTION OF NOTES
1. The notes will be dated September l£, 19U8, and will bear interest from
that date at the rate of 1-3/8 percent per annum, payable on a semiannual basis
on April- 1 and October 1, 19U9^ and April 1, 19^0. They will mature April 1,
195>0, and will not be subject to call for redemption prior to maturity.
2. The income derived from the notes shall be subject to all taxes, now
or hereafter imposed under the Internal Revenue Code, or laws amendatory or
supplementary thereto. . The notes 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 notes will be acceptable to secure deposits of public moneys.
will not be acceptable in payment of taxes.
They
h. Bearer notes will be issued in denominations of $1,000, $5,000, $10,000,
$100,000 and $1,000,000. The notes will not be issued in registered form.
h. The notes will be subject to the general regulations of the Treasury
Department, now or hereafter prescribed, governing United States notes.
III.
SUBSCRIPTION AND ALLOTMENT
1. Subscriptions will be received at the Federal Reserve Bank's and Branches
and at the Treasury Department, Yiashington. Banking institutions generally may
submit subscriptions for account of customers, but only the Federal Reserve Banks
and the Treasury Department are authorized to act as official agencies.
- 2 -
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' notes applied for,
and to close the books as to any or all subscriptions at any time without notice;
and any action he may take in these respects shall be final. Subject to these
reservations, all subscriptions Yd.ll be allotted in full. Allotment notices will
be sent out promptly upon allotment.
IV.
PAYMENT
1. Payment at par for notes allotted hereundeb must be made on or before
September l£, 19U8, or on later allotment, and may be made only in Treasury
Notes of Series A~19h8, maturing September 15», 19U3, which1Will be accepted at
par, and should accompany the subscription,
V.
GENERAL PROVISIONS
1. As fiscal agents of the United States, Federal Reserve Banks are author
ized and requested to receive subscriptions, to- make allotments on the basis and
up to the amounts indicated by the Secretary of the Treasury to the Federal'
Reserve Banks of the respective Districts, to issue allotment notices, to receive
payment for notes allotted, to make, delivery of notes on full-paid subscriptions
allotted, and they may issue interim receipts pending delivery of the definitive
notes.
2. The Secretary of the Treasury may at any time, or from time to time,
prescribe supplemental or amendatory rules and regulations governing the offer
ing, which will be communicated promptly to the Federal Reserve Banks.
JOHN W. SNYDER,
Secretary of the Treasury.
TREASURY DEPARTMENT
Washington
£CST RELEASE, MORNING- NEWSPAPERS
Press Service
Wo.^,0 «*»
fo u
Secretary Snyder announced today the unfreezing of Portugal by its
inclusion in General License No* 53. This action not only removes all
controls over current transactions with Portugal hut also unblocks the
property of most residents of that country under General License No. 53A,
General License No* 70 which authorized certain transactions by or on
behalf of Portugal or any national thereof, has been simultaneously re
voked.
ooOOO-
★
TREASURY DEPARTMENT
In fo rm a tio n S e r v i c e
WASHINGTON, D .C .
RELEASE* MOENING NEiVSPAPEEiSj
Thursday* September 2, 1948
No» S-84,2
Secretary Snyder announced today the unfreezing of Portugal by its
inclusion in General License No* 53« This action not only removes all controls
over current transactions with Portugal but also unblocks the property of most
residents of that country under General License No* 53A. General License No. 70
which authorized certain transactions by or on behalf of Portugal or any
national thereof3 has been simultaneously revoked*
0O0
? y
•ijeijOTSdaik^ John W* Snyder, United States Governor of the
International Bank and the International Monetary Fund/
Konorahlp. William L» Clayton, Alternate United States
Governor of the International Bank and the International
Monetary Fund/
Frank A# Southard, Jr*, Temporary Alternate United States
Governor of the International Bank and the International
Monetary Fund /
Honorable Charles Sawyer, Secretary of Commerce, /dviser/
Hoa©**ftfe3re Paul G* Hoffman, Administrator of the Economic
Cooperation Administration, Adviser/
Unnorafc4.e Charles William Tob'ey, United states Senate, Adviser/
AHonoeable Robert Ft ’
Wagner, United States Senate, Adviser^*
ilcinorft,Trite Jesse Paine Wolcott, United ¿States House of
Representatives, Adviser^
Ifonopr^riso Brent Spence, United States House of Representatives,
1 Adviser/
|jpnr>-nnKLo Garrison Norton, Assistant Secretary of State,,
Adviser,*
Ilpiv.yrnfrie William McChesney Martin, Jr«, Chairman of the
Export-Import Bank of Washington, Adviser.*
Honorable Edmond M* Iianrahan, Chairman of the United States
Securities and Exchange Commission, Adviser*
SSs* Allan Sproul, President of the Federal Reserve Bank of
New York, Adviser.*
14*% M* S* Szymczak, Member of the Board of Governors of the
Federal Reserve System, Advise^*
jjpt James J# Saxon,.Assistant to the Secretary of the
Treasury, Adviser, ¿*4
\90i Thomas J* lynch, General Counsel, Treasury Department,
Adviser
AuAft
TmiE^iW n ^ .t,FAS& FftiSAY, SEPTEMBER 2, 19^8
Secretary Snyder, in his capacity as United States Governor
of the International Monetary Fund and the International Bank for
Reconstruction and Development, today made public the composition
of the United States/rfelegation to the Third Annual Meeting of the
Boards of Governors of the Bank and Fund scheduled to be held at
the Shoreham Hotel in Washington, D. C., commencing on Monday,
*■*
September 27, 19i|8• Membership of theRelegation is as follows:
/
TREASURY DEPARTMENT
WASHINGTON, D .C .
In fo rm a tio n S e r v i c e
RELEASE, MORNING NEWSPAPERS,
Thursday, September 2, 1948,
No, S-843
Secretary Snyder, in his capacity as United States Governor of the In
ternational Monetary Fund and the International Bank for Reconstruction and
Development, today made public the composition of the United States delega
tion to the Third Annual Meeting of the Boards of Governors of the Bank.and
Fund scheduled to be held at the Shoreham Hotel in Washington, D* C*, com
mencing on Monday, September 27, 1948*
Membership of the delegation is as followss John W, Snyder, United
States Governor of the International Bank and the International Monetary
Fund; William L* Clayton, Alternate United States Governor of the Interna
tional Bank and the International Monetary Fund; Frank A. Southard, Jr*, Tem
porary Alternate United States Governor of the International Bank and the In
ternational Monetary Fund;
Charles Sawyer, Secretary of Commerce, adviser; Paul G* Hoffman, Admin
istrator of the Economic Cooperation Administration, adviser; Charles William
Tobey, United States Senate, adviser; Robert F. Wagner, United States Senate,
adviser; Jesse Paine Wolcott, United States House of Representatives, adviser;
Brent Spence, United States House of Representatives, adviser; Garrison Norton,
Assistant Secretary of State, adviser; William McChesney Martin, Jr,, Chair
man of the Export-Import Bank of Washington, adviser; Edmund M* Hanrahan,
Chairman of the United States Securities and Exchange Commission, adviser;
Allan Sproul, President of the Federal Reserve Bank of New York, adviser;
M. S. Szymczak, Member of the Board of Governors of the Federal Reserve
System, adviser; James J. Saxon, Assistant to the Secretary of the Treasury,
adviser, and Thomas J, Lynch, General Counsel, Treasury Department, adviser.
-0O0
patriotic action"; Leon J. Markham, Sales Director of the Savings Bonds
Division, and Baphael J. CMMalley, National Payroll Savings Director.
The Army Band gave a musical program. A platform build especially
for the event in the train concourse was bedecked with bunting and flags.
-
2
-
Coincidental with the ceremony in Washington, the railroad’s 5,000
stations in the 13 states it serves displayed posters to carry to the mil
lions of Americans who daily pass through the stations the story of the
savings achievement of the system’s employes. In Washington Terminal, the
30th Street Station and Broad Street Station in Philadelphia, Pennsylvania
Station in New York City, and Pennsylvania Station in Pittsburgh, hugh
4 0 -foot banners were unfurled«
In presenting the citation, Secretary Snyder saids
"I am grateful for this opportunity of expressing my sincere and deep
appreciation of the1record of Pennj3ylvania Railroad men and women in
buying U. S, Savings Bonds through regular payroll deductions. We all
know that, in these days of high prices and high living costs, it is not
easy to save money. It takes determination, and a willingness to make c
current sacrifices, so as to build for the years which are ahead. But on
the other hand, I do not need to remind any American that there was never
a more appropriate time, or more urgent need, for all of us to put by
dollars for future use,
who are buying bonds
on the payroll savings plan are not only creating security for themselves
but are helping their country at a time when that help is most essential#
h tb,
mm r i O j p o p
"
> in
^
P a v ^ y -^ r T n ii
fin ilrn iftfi
**I do not know of any better way for us to broadcast to the world
our determination, as individual citizens, to keep our country strong for
any emergency that may confront it, thai to cite payrolJ. savings records
n iffo nn Penn ? y lv tan ina R n ilr nnrl cpflpl‘ij" n Qre m aking
¿J
/ [ btU L
p
D
"It should also be good news that altogether 72 million American
workers, in every type of industry and in every form of individual oc
cupation, are on the payroll savings plan for buying savings bonds. We
hope that by January 1 we shall reach the 10,000,000 mark. To attain
this goal, we need the unrieyotnnd help of top management leaders - men
of the calibre of President Clement of the Pennsylvania Railroad - and
also the continued backing of organized labor, so well represented in
this audience,
“To each one of the 82,000 Pennsylvania Railroad workers now partici
pating in this plan as well as to their leaders in organized labor, and
in management, I again offer yma the warmest thanks of our Government, '
Mr, Clement accepted the citation on behalf of the railroad’s employes
and expressed gratitude for the Treasury’s recognition for their bond
buying record# Following his remarks, H# F. Sites, General Chairman of
the Brotherhood of Railroad Trainmen, Lines East of Pittsburgh, spoke for
all the labor general chairmen, and said the labor organizations had been
been happy to cooperate#
Also taking part in the program were Vernon L. Clark, National
Director of the United States Savings Bonds Division, who called the Pennsyl
vania Railroad payroll savings canvass Han inspiring example of volunteer
Ho S - S w
Secretary Snyder today presented to President M* W. Clement of the
Pennsylvania Railroad a special citation, acknowledging the outstanding
Savings Bond buying record established by employees of the line since
the end of World War I*
The ceremony, which took place at the Washington Union Station just
before the departure of the Congressional limited f^fei&uNew York, honored
the 82,553 Pennsylvania workers who have enrolled to buy Savings Bonds
out of their earnings during the peacetime drives of the Treasury
Department* Actively supported by the lapbr brotherhoods on the
Pennsylvania, volunteer employees conducted a system-wide canvass in which
every worker was contacted*
The citation which was presented to President Clement by Secretary
Snyder reads as followss
“Pennsylvania Eailroad employees have achieved an outstanding
record by the investment in U* S*. Savings Bonds through the
Payroll Savings Plan during the Security Loan Campaign, 1948*
Eighty—two thousand five hundred fifty-three employees have
availed themselves of this opportunity to buy Bonds and save
regularly through this Plan made available by the Pennsyl
vania Eailroad Company in cooperation with the U* S* Treasury*
"This patriotic and wholehearted effort is helping each
employee provide for his own future security. This is an
achievement far which every participant can take pride* It
sets a most commendable example to all Americans*
"John W* Snyder,
Secretary of the Treasury"
The program at Union Station was climaxed by the unveiling of:an
illuminated-a|^i:* sign on the rear car of the Congressional, bearing
the slogan, "The Pennsylvania Eailroad is proud that 82,553 employees
are buying U. S. Savings Bonds regularly on payday". It will remain in
place on the train for 30 days* The saae slogan was painted in red,
white and blue on the sides of the Congressional*s locomotive*
' treasury department
In fo r m a tio n S e r v i c e
WASHINGTON, D .C .
No • S—844
KEIEÄSE 4 P. M. EDT,
Thursday, Sept-ember 9 » 1948*
Secretary Snyder today presented to President K. If* Clement of the
Pennsylvania Railroad a special citation, acknowledging the outstanding
Savings Bond buying record established by employees of the line since
the end of World War IX*
The ceremony, which took place at the Washington Union Station just
before the departure of the Congressional Limited for New York, honored
the 82,553 Pennsylvania workers who have enrolled to buy Savings Bonds
out of their earnings during the peacetime drives of the Treasury
Department. Actively supported by the labor brotherhoods on the
Pennsylvania, volunteer employees conducted a system-wide canvass in which
every worker was contacted.
The citation which was presented to President Clement by Secretary
Snyder read as follows:
"Pennsylvania Railroad employees have achieved an outstanding
record by the investment in U* S. Savings Bonds through the
Payroll Savings Plan during the Security Loan Campaign, 194-8*
'Eighty-two thousand five hundred fifty-three employees have
availed themselves of this opportunity to buy Bonds and save
regularly through this Plan made available by the Pennsyl
vania Railroad Company in cooperation with the U. S. Treasury*
"This patriotic and wholehearted effort is helping each
employee provide for his own future security. This is an
achievement for which every participant can take pride. It
sets a most commendable example to all Americans.
"John W. Snyder,
Secretary of the Treasury"
The program at Union Station was climaxed by the unveiling of an
illuminated sign on the rear car of the Congressional, bearing the
slogan, "The Pennsylvania Railroad is proud that 82,553 employees
are buying U* S* Savings Bonds regularly on Payday". It will remain in
place on the train for 30 days* The same slogan was painted in red,
white and blue on the sides of the Congressional1s locomotive©
Coincidental with the ceremony in Washington, the railroad’s 5,000
stations in the 13 states it starves displayed posters to carry to the mil
lions of Americans who daily pass through the stations the story of the
savings achievement of the systems’s employees* In Washington Terminal,
the 30th Street Station and Broad Street Station in Philadelphia, Pennsyl
vania Station in New York City, and Pennsylvania Station in Pittsburgh,
hugh 40-foot banners were unfurled*
-
2
-
In presenting the citation, Secretary Snyder said:
”1 am grateful for this opportunity of expressing my sincere and deep
appreciation of the record of Pennsylvania Railroad men and women in
buying U. S# Savings Bonds through regular payroll deductions. We all
know that, in these days of high prices and high, living costs, it is not
easy to save money. It takes determination, and a willingness to make
current sacrifices, so as to build for the years which are ahead. But on
the other hand, I do not need to remind any American that there was never
a more appropriate time, or more urgent need, for all of us to put by
dollars for future use0
”Railroad workers who are buying bonds on the payroll savings plan
are not only creating security for themselves but are helping their
country at a time Vi/hen that help is most essential.
”1 do not know' of any better way for us to broadcast to the world
our determination, as individual citizens, to keep our country strong for
any emergency that may confront it, than to cite payroll savings records
of the workers of the railroads of the United States.
”It shoudl also be good news that altogether 7¿ million American
workers, in every type of industry and in every form of individual oo*
cupation, are on the payroll savings plan for buying savings bonds. We
hope that by January 1 we shall reach the'10,000,000 mark. To attain this goal, we need the help of top management leaders — men of the
calibre of President Clement of the Pennsylvania Railroad - and also
the continued backing or organized labor, so well represented in this
audienc e.
“To each one of the 82,000 Pennsylvania Railroad workers now partici
pating in this plan as well as to their leaders in, organized labor, and
in management, I again, offer the warmest thanks of our Government.”
Mr. Clement accepted the citation on behalf of the railroad^ employees
and expressed gratitude for the Treasury^ recognition for their bond
buying record. Following his remarks, H. F* Sites, General Chairman of
the Brotherhood of Railroad Trainmen, Lines East of Pittsburgh, spoke for
all the labor general chairmen, and said the labor organizations had been
happy to cooperate.
Also taking part in the program were Vernon L. Clark, National
Director of the United States Savings Bonds Division, who called the
Pennsylvania Railroad payroll savings canvass ”an inspiring example of
volunteer patriotic action”! Leon J. Markham, Sales Director of the
Savings Bends Division, and Raphael J. O ’Malley, National payroll
Savings Director.
The Army Band gave a musical program* A platform build especially
for the event in the train concourse was bedecked with bunting and flags.
oOo
RELEASE, MDRNIHU I«SPAPEKS,
Saturday, September 4. 1948«
The Secretary of the Treasury announced last evening that the tenders for
#1,000,000,000, or thereabouts, of 91-day Treasury bills to be dated September 9 and
to mature December 9, 1948, which mere offered August 31, 1948, were opened at the
federal Reserve Banka on September 3*
The details of this Issue are as follows:
Total applied for - #1,597,689,000
Total accepted
- 1,001,528,000 (includes #43,439,000 entered on a non
competitive basis and accepted in full at
the average price shown below)
Average price
- 99,728/ Equivalent rate of discount approx, 1,076# per anma
Range of accepted competitive bids:(Excepting one tender of #100,000)
High
Low
• 99,734
- 99,726
Equivalent rate of discount approx, 1,068# per annua
"
»
»
*
»
1,064# •
«
(42 peroent of the amount bid for at the low price was accepted)
Federal Reserve
District
Total
Applied for
Boston
Hew York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St, Louis
Minneapolis
Kansas City
Dallas
San Francisco
# 12,690,000
1,348,383,000
17,595,000
9,768,000
2,780,000
1,628,000
94,876,000
4,081|K)00
8,900,000
11,361,000
5,970,000
79.552.000
Total
#1,597,589,000
Total
Accepted
$
6,232,000
8}6,505,000
10,060,000
8,028,000
2,780,000
1,628,000
55,416,000
3,806,000
8,697,000
10,781,000
8,533,000
72*012,000
#1,001,528,000
of«
TREASURY DEPARTMENT
WASHINGTON, D .C .
In fo rm a tio n S e r v i c e
RELEASE, MORNING NEWSPAPERS,
Saturday, September A, 1948.
No,
S-845
The Secretary of the Treasury announced last evening that the tenders for
$1,000,000,000, or thereabouts of 91-day Treasury bills to be dated September 9
and to mature December 9* 1948, which were offered August 31, 194$, were
opened at the Federal Reserve Banks on September 3«
The details of this issue are as follows:
Total applied for - $1,597,589*000
Total accepted
- 1,001,528,000 (includes $43,439*000 entered on a non
competitive basis and accepted in full
at the average price shown below)
Average price
- 99*728/ Equivalent rate of discount apjprox, 1*076$
per annum*
Range of accepted competitive bids: (Excepting one tender of $100,000)
- 99*734 Equivalent rate of discount approx* 1*052$
per annum
- 99*726 Equivalent rate of discount approx. 1*084$
per annum
HIGH
LOW
(42 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 Gity
Dallas
San Francisco
$ 12 ,690,000
1,348,388, 000
17,595,000
9,768,000
2,780,000
1,628,000
94,876,000
4,081,000
8,900,000
1 1 ,361,000
5,970,000
79,552,000
$
TOTa L
4-1,597, 589,000
$1,001, 528, 000
q
0o
6,232,000
816,505,000
10,060,000
8,028,000
2,780,000
1,628,000
55,416,000
3,806,000
8,697,000
10,781,000
5,583,000
72,012,000
P S
Ili
Vernon L. Clark, National Director of the Savings Bonds
Division, also
addressed the new committee* He stressed the
need for volunteers
to carry forward the Savings Bonds program.
Members of the committee, he noted, represent organizations and
agencies
which are in daily contact with
farmers and exercise
a profound influence upon their thinking, and hence
placed, to
encourage the thrifty
wrap tic e of
are well
ho nd.Mpudfin^
Members of the National Agricultural Savings Bonds Committee, appointed byj
Secretary Snyder, are:
Carl Colvin, Deputy Governor, Farm Credit Administration,
Washington; John Davis, Executive Secretary, National Council Farmer Cooperatives,
Washington; Roger Fleming, Director, Washington Office, American Farm Bureau
Federa-
tion, Washington; Albert Si Goss, Master, the National Grange, Washington; Edward
F. Hoi ter, Lecturer, The National Grange, Middletown, Maryland; Van B. Hart, Pro
fessor of Farm Management, New York State College of Agriculture, Cornell University!
Ithaca, New York; Allan B. Kline, President, American Farm Bureau Federation,
William
Chicag
R. Kuhns, Secretary, Savings Bonds Committee, American Bankers Association,
IS
New York ^ity; Don Lerch, Agricultural Director CBS* National Association of
Radio
Farm Directors, Washington;] C» L. Mast, Secretary, American Agricultural Editors
Association, Chicago;
W„ A. Minor, Assistant to the Secretary, U. S. Department of
Agriculture, Washington; William I. Myers, Dean, New YorkS^ate College of Agricul
ture, Cornell University, Ithaca, New York; Charles T. O^Neill, Chairman, Agricul
tural Commission, American Bankers Association, Charlottesville, Virginia; Janes
Patton, President, The National Farmers Union, Denver; H. H. Rathbun, President,
.
*
s'
National Council Farmer Cooperatives, New York City; Paul Sanders, President, Americ
Agricultural Editors Association, Richmond, Virginia; Glenn Talbott, Chairman, Execu
tive Committee, The National Farmers Union, Jamestown, North Dakota; and Charles 0.
Worcester, President, National Association of Radio Farm Directors, Cedar Rapids,
Iowa.
•jBS-vSr
BEL8A3B, .AFTBRNOGN NEWSPAPERS
'Tuesday, September 7 , 1943
Secretary Snyder today-announced the formation of a group
of volunteer advisers .who.se efforts will be devoted to the
sale of U.S. Savings Bonds to farmers. The group, which held
its first meeting at the Treasury today,
will be known as the
National Agricultural Savings Bonds Committee.
Members of the committee include., representatives of
leading national farm organizations,
various other agricultural
agencies, the agricultural press, arid the radio industry.
They will assist the U. S,. Savings Bonds Division of the Treasury
in
mapping plans to
encourage farmers throughout the nation
to
build financial reserves in Savings Bonds.
Secretary Snyder welcomed the
Treasury!s appreciation of
continuing
this further volunteer aid in
campaign for greater bond sales.
this has been another
is a good time to
tile farmer.
group arid expressed the
its
He pointed out that
good crop year, and that therefore it
re-emphasize the Savings Bonds
benefits to
He noted that farmers always had responded well to
the bond campaigns.
TREASURY DEPARTMENT
In fo r m a t io n S e r v i c e
IMMEDIATE RELEASE,
Tuesday, September 7, 1948.
WASHINGTON, D .C .
No. S -846
Secretary Snyder today announced the formation of a group of volunteer
advisers whose efforts will be devoted to the sale of U. S. Savings Bonds
to farmers. The group, which held its first meeting at the Treasury today ^
will be known as the National Agricultural Savings Bonds Committee;
Members of the committee include representatives of leading national
farm organizations, various other agricultural agencies, the agricultural
press, and the radio industry. They will assist the U; S. Savings Bonds
Division of the Treasury in mapping plans to encourage farmers throughout
the nation to build'financial reserves in Savings Bonds.
Secretary Snyder welcomed the group and expressed the Treasury’s appre
ciation of this further volunteer aid in its continuing campaign for
greater bond sales. He pointed out that this has been another good crop
year, and that therefore it is a good time to re-emphasize the Savings
Bonds benefits to the farmer. He noted that farmers always had responded
well to the bond campaign.
Vernon L. Clark, National Director of the Savings Bonds Division, also
addressed the new committee. He stressed the need for volunteers to carry
forward the Savings Bonds program. Members of the committee, he noted, rep
resent organizations and agencies which are in dailjr contact with farmers
and exercise a profound influence upon their thinking, and hence are well
placed to encourage the thrifty practice of bond buying.
Members of the National Agricultural Savings Bonds Committee, appointed
by Secretary Snyder' are: Carl. Colvin, Deputy Governor, Farm Credit Admin
istration, Washington; John Davis, Executive Secretary, National. Council
Farmer Cooperatives, Washington; Roger Fleming, Director, Washington Office,
American Farm Bureau Federation, Washington; Albert S. Goss, Master, The
National Grange, Washington; Edward F. Holter, Lecturer, The National
Grange, Middletown, Maryland; Van B. Hart, Professor of Farm Management,
New York State College of Agriculture, Cornell University, Ithaca, New York;
Allan B. Kline, President, American Farm Bureau Federation, Chicago;
William R. Kuhns, Secretary, Savings Bonds Committee, American Bankers As
sociation, New York City; Don Lerch, Agricultural Director CBS, National
Association of Radio Farm Directors, Washington;
C. L. Mast, Secretary, American Agricultural Editors Association, Chi
cago; W. A. Minor, Assistant to the Secretary, U. S. Department of Agri
culture, Washington; William I. Myers, Dean, New York State College of
-
2
Agriculture, Cornell University, Ithaca, New York; Charles T. 0*Neill, Chair
man, Agricultural Commission, American Bankers Association, Charlottesville,
Virginia; James Patton, President, The National Farmers Union, Denver;
H. H. Rathbun, President, National Council Farmer Cooperatives, New York
City; Paul Sanders, President, American Agricultural Editors Association,
Richmond, Virginia; Glenn Talbott, Chairman, Executive Committee, the Na
tional Farmers Union, Jamestown, North Dakota; and Charles 0. Worcester,
President, National Association of Radio Farm Directors, Cedar Rapids, Iowa.
-o0o<
saapiiiiii
26
men are
-
That ¡ s the reason I
invited two men
It
each organ i zation,|
is most d i f f i c u l t
impossible to s e t
are no c o n f l i c t s ,
st
when there
but with two
HlBnHii
representatives
I
each
o r g a n i z a t i o n will be repr es ent ed at
any and a l l
f ut ur e meetings of the
Committee.
Again,
I want to thank
you for being here today and to express
in advance for the
§ §
m
II
a s s i s t a n c e I know
from you.
wi I I r e c e i v e
■if
before you in d e t a i l ,
1111
i e want your
Y
aovi ce ana counsel as to the best
methods of approach and your help in
'•
4>
determining how to reach every farmer
in America e f f e c t i v e l y with the
Savings Bonds Program.
We a l s o want
your advice and counsel r egarding a
continuing a g r i c u l t u r a l
Program.
So,
Savings Bonds
1 hope before the day is
over you will organi ze as a committee,
with a chairman and a vi ce-chai rman.
I r e a l i z e f u l i well t h a t a l l of you
a r e one commodity t h a t cannot be
" o v e r s o l d 1*.
They provide the utmost
in s a f e t y for the f a r m e r ’ s f i n a n c i a l
r e s e r v e s and a t the same time provide
ready cash if i t should be needed.
Their guaranteed values do not depend
upon a f l u c t u a t i n g market.
I am s or r y t h a t I cannot be with
you for your c o nf e r e nc e s during the
e n t i r e day, but 1 nave asked o f f i c i a l s
of the Treasury and the Savings Bonds
Division to place c e r t a i n problems
financial
s e c u r i t y f o r the individual.
Farmers have been, and a r e ,
important i n v e s t o r s in Savings Bonds.
They not only buy them, but they
r e t a i n them.
agricultural
st at ement .
The r e c o r d s of the
s t a t e s are proof of this
Farm s t a t e s have always
been among the leaders in Savings
Bond s a l e s ,
and we are c onfi dent that
we can continue to depend upon the
farmers to do t h e i r f u l l
shar e.
I'm
sure you will agree t h a t Savings Bonds
p r o f i t a b l e farm year ,
we b el i eve it
is a good time to reemphasize the
s i g n i f i c a n c e of the Savings Bonds
Program to the farmer.
We need your
advice and your counsel
in doing this.
I wish i t were pos s i bl e to get every
farmer and every individual to build
. a financial
reserve
Savings Bonds.
in United S t a t e s
I t would not only
help from the nati onal
standpoint by
more widely d i s t r i b u t i n g the public
debt, but obviously would provide
jj
21
management pol i cy
Is to be continued
V
with an ant I - I n f i a t i o n a r y o b j e c t i v e ,
the ammunition will be s e v e r e l y
limited.
Accordingly,
It Is highly
important in the year ahead t h a t a
maximum e f f o r t should be devoted to
the s a l e of Savings Bonds to nonbank
hol der s,
so as to provide the g r eat es t
pos s i bl e amount of funds to be used
In maintaining reasonable pressure
on the bank c r e d i t s i t u a t i o n .
.As we near the end of another
\
- 20 -
:|if
For the f u l l f i s c a l
year
with the r e c e n t tax reduction
1949,
in
e f f e c t and with expendi tures at
f o r e c a s t by the P r e s i d e n t ,
levels
the public
f
debt wit:1 remain a t pr es ent l e v e l s .
The only funds a v a i l a b l e for debt
r e t i r e m e n t will be the cash r e c e i p t s
from t r u s t funds and the r e c e i p t s
from s a l e s of Savings Bonds in excess
of redemptions.
If,
therefore,
i n f l a t i o n a r y p r es s ur es continue
through f i s c a l
1949, and if debt
j
-
than 25 per cent
18
-
in commercial and
Federal Reserve Bank p o r t f o l i o s of
Government s e c u r i t i e s
over two years.
in j u s t a l i t t l e
This is a substantial
achievement.
f i e could
hard
laid out, and we c e r t a i n l y would not
have dared f o r e c a s t ,
successful
a program as
as t h i s when we stood at
the threshold of debt p a y - o f f s back
in 1546.
Now,
in September 1548, our debt
has been reduced by $ 2 6 - 1 / 2 b i l l i o n
from the peak.
helpings of Federal s e c u r i t i e s have
gone up by about $ 3 - 1 / 2 b i l l i o n ,
t h a t tne reduct ion
so
in holdings by
commercial ano Federal Reserve Banks
nas a c t u a l l y been g r e a t e r than the
r educt ion in t o t a l
public debt.
On February 28,
1946, commercial
and Federal Reserve Banks held
$117 b i l l i o n of Federal
At the pr esent time,
$87 b i l l i o n .
securities.
they hold
This d e c l i n e of $30
b i l l i o n r e p r e s e n t s a r educt ion of more
/
jjg
-17
major a n t i - i n f l a t i o n a r y importance.
I t has been the Treasury policy,
during t h i s same period,
to aim
at a reduct ion in the Government
s e c u r i t y holdings of the commercial
banking system.
In seeking to
achieve t h i s o b j e c t i v e ,
we have
found t ha t our wartime program of
f i t t i n g s e c u r i t i e s to the needs of
the various i n v e s t o r s has paid
dividends.
I t is g r a t i f y i n g t h a t
s i n c e the peak of the debt, nonbank
h
I am s ur e t h a t a l l
o f you a r e
f a m i l i a r wi t h t he p o l i c y behi nd the
de b t p a y - o f f program a s
conducted.
pressures
increasing
i t has been
inflationary
in t h e economy d ur i n g the
p a s t two y e a r s have made i t
that f is c a l
directed
increases
i mperat i ve
and monet ary p o l i c y be
t o c omba t i ng f u r t h e r
in p r i c e .
The very f a c t
t h a t t he Tr e a s ur y was r e c e i v i n g more
money in t a x e s
than
i t was payi ng
15
f o r t h i s program came from our budget
surplus of $6 b i l l i o n accumulated
s i n c e January I,
1948.
The r e s t of
the surplus had been added
t empor ar i l y to the cash balance.
P a r t of t h i s remainder
is now being
used for debt reduction - - $ 1 / 2 bi I Mor
of m a t u r i t i e s wi l l be paid o f f on
September 15, for example - - but some
of i t wi l l be needed to meet new
requirements f o r national
defense and
i n t e r n a t i o n a I aid during the months to
come.
Illll ' 01
-
I4 -
The cash l e f t over from the Victory
Loan had been expended by t h i s time,
so t h a t debt reduction during 1947
had to come from the budget surplus -and was,
in f a c t ,
to t h a t s urpl us.
j u s t about equal
The t h i r d phase of
the debt pay- of f program occurred
during the f i r s t four months of t h i s
cal endar year.
In those few months,
we reduced the debt by $ 4 - l / 2 bi l l i on
almost twice the reduct ion for the
e n t i r e cal endar year
134 ?.
The money
■ ¡ ■ p i i
•
I
i
-
■
current total
of $253 b i l l i o n .
This
pay- o f f program which we have carried
out f e l l
into t h r e e per i ods.
The f i r s t phase was from the
end of February
1948, to the c l o s e of
the year , during which the debt was
reduced by $20 b i l l i o n through the
a p p l i c a t i o n of cash funds r ec ei ved
from the Victory Loan.
During the
cal endar year 1947, the second phase
of the pay- of f program, we were able
to cut the debt by $ 2 - 1 / 2 b i l l i o n .
12
reached i t s peak of $280 b i l l i o n in
February 1946,
of the war.
j u s t a f t e r the c l o s e
The Victory Loan of two
months e a r l i e r had been our l a s t
g r e a t d r i v e f o r funds.
War c r e a t e d
c o s t s had begun to t a p e r o f f ,
and we
no longer needed a Treasury cash
balance of the pr o po r t i o ns for which
the emergencies of the preceding
years had c a l l e d .
A debt p a y - o f f
program was t h e r e f o r e inaugurated.
I t has brought the debt down to the
Federal
Government.
This must
continue as long as the public debt
remains a t
i t s present r e l a t i v e size
ana p r o p o r t i o n s .
However, the public
must be c o n s t a n t Iy a l e r t and f ul l y
c o o p e r a t i v e in seeing t h a t the
e x e r c i s e of t h a t power i s , a t a l l
times, d i r e c t e d toward the broad
o b j e c t i v e o f the national
welf ar e.
i should Ii Ke to take a few
minutes to review the h i s t o r y of the
of the debt si nc e
it
i t p l a c e s upon the Federal Government
a gr$ve r e s p o n s i b i I i t y f o r proper debt
/
management and f o r the sound conduct
of a l l of i t s f i n a n c i a l a f f a i r s .
No matter how j e a l o u s we may be
of the freedoms of p r i v a t e ent e r pr i s e ,
therefore,
the hard f a c t s a r e t h a t
the management of our large publ i c
debt is such a dominant f a c t o r
in the
f i n a n c i a l and economic l i f e of the
Nation t h a t fi rm c ont r ol
/
of debt
management must be e x e r c i s e d by the
and d e p o s i t s in mutual savings banks,
commercial banks,
insurance companies,
and other f i n a n c i a l
i n s t i t u t i o n s which
own Federal s e c u r i t i e s .
This
widespread d i s t r i b u t i o n of the public
debt gives every person in the
United S t a t e s a v i t a l
interest
in the
debt and in i t s proper management.
I t gives every individual an immediate
and personal
i nc e nt i v e f o r seeing
t h a t the f i n a n c i a l a f f a i r s of the
Government are handled wisely.
And
8
of Government s e c u r i t i e s and public
debt management a l s o sharply a f f e c t
trie s i t u a t i o n of the banking
i n s t i t u t i o n s and o t h e r f i n a n c i a l
concerns.
In a broader sense,
likewise a f f e c t
they
i ndi vi dua l s .
Inti i v i aua I c i t i z e n s d i r e c t l y own
about $67 b i l l i o n of Federal
securities.
In a a o i t i o n , they have
an i n d i r e c t stake in a much l ar ger
portion of the public debt s e c u r i t i e s
outstanding because of t h e i r savings
- 7 whereas,
in 1947, the public debt
exceeded the gr os s na t i o na l product
f o r the year.
*
■SM
These f i g u r e s and comparisons
ar e unmistakable evidence of the
compelling n e c e s s i t y for debt
Jill
management to be d i r e c t e d properly and
advantageous I y to the f i n a n c i a l
c o n s i d e r a t i o n s of the Government,
and to the economic well -being of the
country
F a c t o r s which a f f e c t the f i e l d
and p r i v a t e debt.
Today, the t o t a l
public debt of $253 b i l l i o n
c o n s t i t u t e s some 55 percent of the
t o t a l of a l l debt of the Nation.
Before the war, Government s e c u r i t i e s
were about 25 percent of the t o t a l
a s s e t s of member banks; while today
they are about 45 percent of t o t a l
assets.
They a l s o c o n s t i t u t e
40 per cent of the a s s e t s of insurance
companies and 60 percent of the assets
of mutual savings banks.
Before the
■■■I
- 3
sv"?
savings bond m a t t e r s , and in turn
to explain to you our program of
a c t i v i t i es.
I want to s t a r t o f f these
d i s c u s s i o n s by t a l k i n g with you a
l i t t l e about the f i n a n c i a l
problems
of the Treasury Department, which
are,
as a matter of f a c t ,
the financial!
problems of the Federal Government.
One of the pr i nc i p a l
respons i b i I i t i es of the Treasury is
the management of t he public debt
2
jg g j | | j| 2
Since I have been a t the Treasury
I have f r e q u e n t l y consulted with
advisory committees r e p r e s e n t i n g
p a r t i c u l a r segments of our economy.
These committees are very hel p f u l .
We i n v i t e here advisory groups
r e p r e s e n t i n g commercial banks,
savings banks,
insurance companies,
government bond d e a l e r s ,
and i n d u s t r i a l
others.
commercial
c o r p o r a t i o n s and
You, of c o u r s e , r e p r e s e n t
agriculture,
and we a t the Treasury
would like to get your viewpoint on
¡mw^mà m
W
I p
y
V
{ g r e a t l y a p p r e c i a t e your coming
-
here today to d i s c u s s with us some
of the problems we have a t the
Treasury.
Government, as you know,
is j u s t as much your business as
it
is the business of those a c t i v e l y
engaged in i t .
The job of running
government in our American democracy
is the job of 146 mi l l i on people.
<
The kind of government we have here
iiss the kino of government t h a t you
and 146 mi l l i on other people make
it.
The following.address by Secretary Snyder be fore the' Natibna
Agricultural Savings Bonds Committee
at the Treasury
Department, Washing tori," is scheduled for delivery at 1 : 1 5
Tuesday,
Septembe r 7jujl:9 ,
and
for release
P.
time.
TREASURY DEPARTMENT
Washington
The fpllovdng address by Secretary Snyder before the National
Agricultural Savings Ronds Committee at the Treasury Department9
Washington, is scheduled for delivery at. 1;15 P.JIL Tuesday.
September 7. 1948. and is for release at that time.«
I greatly appreciate your coming here today to. discuss with us some
of the problems we have at the Treasury, Government, as you knoWj is just
as much your business as it is the business of those actively engaged in
it. The job of running government in our American democracy is the job of
14-6 million people. The kind of government we have here is the kind of
government that you and 146 million other people make it.
Since I have been at the Treasury^ I have frequently consulted with
advisory committees representing particular segments of our economy. These
committees are very helpful. We invite here advisory groups representing
commercial banks^ savings banks} insurance companies3 government bond
dealersj commercial and industrial corporations and others,- You^ of course
represent agriculture^ and we at the Treasury would like to get your view
point on savings bond matters} and in turn to explain to you our program
of activities,
I want to start off these discussions by talking with you a little
about the financial problems of the Treasury Department^ which are_, as a
matter of fact the financial problems of the Federal Government,
One of the principal responsibilities of the Treasury is the manage
ment of the public debt — now in excess of Q250 billion. The economic
importance of this debt lies not merely in its size_, but in its proportion
to the total of all debt in our Nation, in the impact of its management on
all interest rates_, in its cost of servicing^ and in the proper provision
for its retirement.
At the end of tho fiscal year 1 9 4 0 the public debt amounted to less
than 050 billion and was less than 25 percent of the total public and private
debt. Today,, the total public debt of 0253 billion constitutes some 55 per
cent of the total of all debt of the Nation, Before the war_, Government
securities were about 25 percent of the total assets of member banks; while
today they are about 45 percent of total assets. They also constitute 40 per
cent of the assets of insurance companies and 60 percent of tho assets of
mutual savings banks. Before the war3 the rate of interest on the public
debt was largely influenced by current financial and business conditions;
today^ the size and proportion of tho Federal debt to the total of all debt
makes it the dominating factor in determining interest rates on private debt
and the return on investments. Before the wrar, the public debt was only
about one-half of a yearTs gross national product;'whereas, in 1947, the
public debt exceeded the gross national product for the year*.
S-847
-
2
-
These figures and comparisons are unmistakable evidence of the com
pelling necessity for debt management to be directed properly and advan
tageously to the financial considerations of the Government^ and to the
economic well—fceing of the country.
Factors which affect the field of Government securities and public
debt management also sharply affect the situation of the banking institur-'
tions and other financial concerns. In a broader sense^ they likewise
affect individuals. Individual citizens directly own about $67 billion
of Federal securities,. In addition, they have an indirect stake in a much
larger portion of the public debt securities outstanding because of their
savings and deposits in mutual savings banks 3 commercial banks3 insurance
companiesj and other financial institutions which own Federal securities;
This widespread distribution of the public debt gives every person in the
United States a vital interest in the debt ana in its proper management.
It gives every individual an immediate and personal incentive for seeing
that the financial affairs of the Government are handled wisely,- And it
places upon the Federal Government a grave responsibility for proper debt
management and for the sound conduct of all of its financial affairs4
No matter how jealous we may be of the freedoms of private enterprise^
thereforej the hard facts are that the management of our large public debt
is such a dominant factor in the financial and economic life of the Nation
that firm control of debt management must be exercised by the Federal
Government, This must continue as long as the public debt remains at its
present relative size and proportions. However, the public must be con
stantly alert and fully cooperative in seeing that the exercise of that
power iSj at all times^ directed toward the broad objective of the national
T/eIfare ,
I should like to take a few minutes to review the history of the manage
ment of the debt since it reached its peak of $280 billion in February 194-6^
just after the close of the war. The Victory Loan of two months earlier had
been our last groat drive for funds, Viar created costs had begun to taper
off, and we no longer needed a Treasury cash balance of the proportions for
which the emergencies of the preceding years had called, A debt pay-off
program was therefore inaugurated. It has brought the debt down to the
current total of $253 billion. This pay-off program which we have carried
out fell into three periods.
The first phase was from the end of February 194-6^ to the close of the
yeaduring which the debt was reduced by $20 billion through the applica
tion of cash funds received from the Victory Loan, During tho calendar
year 1947, the second "chase of the pay-off program^ we were able to cut the
debt by $2-1/2 billion. The cash left over from the Victory Loan has been
expended by this time_, so that debt reduction during 1947 had to come from
the budget surplus — and w a s i n fact^ just about equal to that surplus.
The third phase of the debt pay-off program occurred during the first four
months of this calendar year, In these few months, we reduced the debt
- 3 -
by $4^1/2 billion W* ..almost trace the reduction for the entire calendar year
1947, The money for this program came from our budget surplus of $6 billion
accumulated since January 1, 1948,, The rest of the surplus had-been added
temporarily to the cash balance. Part of this remainder is now being used
for debt reduction — $1/2 billion of maturities will be paid off on
September 15, for example — but some of it will be needed to meet new
requirements for national defense and international aid during the months
to come v,
I
I am sure that all of you are familiar with the policy behind the
debt paywoff program as it has been conducted, . Increasing inflationary
pressures in the economy during the past two years have made it imperative
that fiscal and monetary policy be directed to combating furthur increases
in price. The very fact that the Treasury was receiving more money in taxes
than it was paying out through its expenditures was of major anti-inflationary
importance„'
It has been the Treasury policy, during this same period, to aim at a
reduction in the Government security holdings of the commercial banking
system. In seeking to achieve this objective, we have found that our wartime
program of fitting securities to the needs of the various investors has paid
dividends. It is gratifying that since the .peak of the debt^ nonbank holdings,
of Federal securities have gone up by about $3-1/2 billion, so that the reduc
tion in holdings by commercial and Federal Reserve Banks has actually been
greater than the reduction in total public debt.
On February 28, 19/6, commercial and Federal Reserve Banks held $117
billion of Federal securities. At the present time, they hold $87 billion.
This decline of $30 billion represents a “reduction of more than 25 percent
in commercial and-Federal Reserve Bank portfolios of Government securities
in just a little over two years. This is a* substantial achievement. Vie
could hardly have laid out, and we certainly would not have dared forecast,
a program as successful as this when we stood at the threshold of debt
pay-offs back in 1946,
Now, in September 1948, cur debt has been reduced by $26-1/2 billion
from the weak.
For the full fiscal year 1949,. with the recent tax reduction in effect
and with expenditures at levels forecast by the President, the public debt
will remain at present levels. The only funds available for debt retirement
vdll be the cash receipts from trust funds and the receipts from sales of
Savings Bonds in excess of redemptions. If, therefore, inflationary pressures
continue through fiscal 1949, and if debt management policy is to be continued
.with an anti-inflationary objective, the ammunition will be severely limited.
Accordingly, it is highly important in the year ahead that a maximum effort
should be devoted to the sale of Savings Bonds to nonbank holders, so as to
provide the greatest possible amount of funds to be used in maintaining
reasonable pressure on the bank credit situation,
- 4 -
As we near the end of another profitable farm year, we believe it is
a good time to reemphasize the significance of the Savings Bonds Program to
the farmer* lie need your advice and your counsel in doing this. I wish
it were possible to get every farmer and every individual to build a finan
cial reserve in United States Savings Bonds, It would not only help from
the national standpoint by more widely distributing the' public debt, but
obviously would provide financial security for the individual.
Farmers have been, and are, important investors in Savings Bonds.
They not only buy them, but they retain them. The records of the agricul
tural states are proof of this statement. Farm states have always been
among the leaders in Savings Bond sales, and we are confident that we can
continue to depend upon the farmers to do their full share. ITm sure you
mil agree., that Savings Bonds are one commodity that cannot be noversold”.
They provide the utmost in safety for the farmer*s financial reserves and
at the same time provide ready cash if it should be needed. Their guaran
teed values do not depend upon a fluctuating market,
I am sorry that I cannot be with you for your conferences during the
entire day, but I have asked officials of the Treasury and the Savings Bonds
Division to place certain problems before you in detail. Vie want your
advice and counsel as to the best methods of approach and your help in
determining how to reach every farrier in America effectively with the
Savings Bonds Program, V!c also want your advice and counsel regarding a
continuing agricultural Savings Bonds Program. So, I hope before the day
is over you will organize as a committee, with a chairman and. a vice-chairman.
I realize full well that all of you men are busy. That is the reason I
invited two men from each organization. It is most difficult and almost
impossible to set a date Yiien there are no conflicts, but with two represen
tatives I hope each organization will be represented at any and all future
meetings of the Committee. Again, I want to thank you for being here today
and to express appreciation in advance for the assistance I know wo will
receive from you.
-'V
STATUTORY DEBT LIMITATION
AS OF August .31,.ISM .
TREASURY DEPARTMENT
F i s c a l Se rv ice
W ashington, S e p t * 3.» ]
Section 21 of the Second Liberty Bond Act, as amended, provides that the face amount of obligations issued
under authority(o£) that Act, and the face amount of obligations guaranteed as to principal and interest by the
TJaited 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 adiscount basis which is redeemable prior to maturity at the option
of the holder shall be considered as its face amount. "
_____ I.... ...... ..... .......- ,-------- ---------------------:------------------------ ----------------- -■--------- ------------------ .1— I------ j --------- :.-. ^-....--- --------
The following table shows the face amount of obligations outstanding and the face amount which can still he
issued under this limitation:
Total face amount that may be outstanding at any m e time
Outstanding August 3^* 19^8
Obligations issued,under Second Liberty Bond Act, as amended
Interest-bearing:
Treasury bills............... #12,838,393,000
Certificates of indebtedness.......
22,293*7^5»000
Treasury notes............. .
15«71^*888*200
Bonds —
Treasury............. .... 2* 112,^62,023,500
Savings (current redenp.value)...
5^*70^-,265,070
Depositary...........
330*7^6,000
522,296,925
Armed Forces Leave.......
Investment series........ 958 »0^5.000
Special Raids Certificates of indebtedness...
Treasury notes...............
Total interest-bearing...... .
^Matured, interest-ceased..........
1 6 ,5 7 2 ,2 5 0 ,0 0 0
i4.3i4.gg3,50 0
Bearing no interest:
War Savings stamps.................
5 6 ,1 1 0 , 1 1 2
Excess profits tax refund bonds..»«
8 ,2 2 1 ,9 1 ^
Special notes of the Ifcited States:
Internat*1 Bank for Reconst,
and Development series..... .
6 5 ,7 8 5,0 0 0
Internat*1 Manetary Rmd series..
I.1 6 1 .OOO.OOO
Total................... ..........
Guaranteed obligations (not held by Treasury):
Interest-bearing*
Debentures: F.H.A. ................
Demand obligations: C.C.C. ........ ____
Matured, interest-eeaSed...... .........
13,980,380
32,937,519
$275,000,000,000
t 5 0 , & 7 »o H6,2o o
168,977,351,^95
30,887,133,500
S 50,711,531,195
233,682,185
1 ,291 .117,026
2 5 2 ,2 3 6 ,3 3 0 ,4 0 6
4 6 ,9 17,9 0 5
^.327.975
51.flt5.880
Grand total outstanding........ ....................
Balance face amount of obligations issuable under above authority.
Reconcilement with ^atement ox the Public Debt - August 3 1 * 19^8
(Daily Statement of the United States Treasury, September 1, lÿ+8
Outstanding Total gross public debt...*«...«........................................ .
Guaranteed obligations not owned by the Treasury......... .............. * ....
Total gross public debt and guaranteed obligations................................
Deduct - other outstanding public debt obligations not subject to debt limitation.......
252.287.776,286
22,712,223,714
2 5 3 .0 4 9 ,362.065
■5 1 « W » g g Q
253,100,807,T O
813.031.6ji
$252.287.776I286
STATUTORY DEBT LIMITATION
AS OF August 31. 1948
September 9, 1948
Section 21 of the Second Liberty Bond Act, as amended, provides that the face
omrrnnt of obligations issued under authority of that Act, and the fac.e amount of
obligations guaranteed as to principal and interest by the Uhited States (except such
CTiararteed obligations as may be held by the Secretary of the Treasuiy), shall pot
Sceed in the aggregate $275,000,000,000 outstanding at any one timeo For purposes
of t His section the current, redemption value of any obligation issued on a discount
„asis which is redeemable prior to maturity at the option of the holder shall be
Considered as its face amount o'*
Pa c e
The following table shows the face amount of obligations outstanding and the Ig
a m o u n t which can still be issued under this limitation:
, ,
$27 5 000 0 0 0 ,0 0 0
Total face amount that may be outstanding at any one time
Outstanding August 31, 1948
Obligations issued under Second Liberty Bond Act, as amended
In t e re st-bea ring:
Treasuiy bills©©©©©©©©©©*©©© t? 12,838,39y,000
Certificates of indebtedness 00
22,293,765,000
Treasuiy notes..............
15.7U.888.2QQ $ 50,847,046,200
Bonds —
T reasuiy o o o o o o o o o o o o p o o o o o 112 , 4-6*-, 02 , 500
Savings(current redemp0 value) 54,704,260,070
Depositary ©o©©©©©©©©©©©©©»
330,726,000
Armed Forces Leave90o»oooo
522,296,925
Investment series©©co©©©©© _____953,045,000168,977,351,495
• Special Funds Certificates of indebtedness 16,572,250,000
30.887,133,500
Treasuiy notesooooo©o©©©©o
14«314.883«500
Total interest—bearing©ooooo©o©oooooo©©,>t, 250,711,531,195
233,682,185
Matured, interest—ceased©oo©o©ooooo©ooooo©ooo©<5
Bearing no interest:
War savings stamps©©©©©©©©©©
56,110,112
Excess profits tax refund bonds
8,221,914
Special notes of the United States:
Into m a t *1 Bank for Re cons to
and Development s erie s 0o
65,7 85,000
1 291.117.026
Inte m a t *1 Monetary Fund series 1.161.000,000
Totalooo©O©©©o©o©©©0O9©O©oo©Ooe© ©© ©©OOOooOoOoo© 252,236,330,406
Guaranteed obligations (not held by Treasury):
Interest-bearing:
Debentures: F©H*A*©©-oo©o©©o
13,980,386
Demand obligations: CoCoCoo ______ 32.937.519.
Matured, interest—ceased o o o o o o o o .p o «©'©»©©©©©©©©
46,917,905
A. 527.975
-------51,445,880
252.287.776,286
Grand total outstanding *©ooooooo© ©©©©©©©o a©*©©©©©
22,712.223,714
Balance face amount of obligations issuable under above authority oo
u^eoncilement with Statement of the public Debt - August 31, 1948
(Daily Statement of the United States Treasuiy, September 1, 1948)
Outstanding —
253,049,362,065
Total gross public debt©©o ©ooo©o©00 ©©© ©o©»©©® 00001,0 0000ooa000000
51,445 ,.880
Guaranteed obli gat ions not owned by the T reasuiy oooooooooooooo«©©© _
>53,100,807,945
yTotal gross public debt and guaranteed obligations©00©©©©0000000©©
Deduct - other outstanding public debt obligations
813.031.659
not subject to debt limitation©00000000©©o p o ©©©©©0000000000
£252.237.776.286
S-84S
FOR IMMEDIATE RELEASE
September 7> 19U8
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 19U6, from January 1 , 19l*8, to August 2 8 , 19U8,
inclusive, as follows:
Products o f
:
P h ilip p in e Is la n d s :
E sta b lish e d Quota:
Q uantity
:
Unit o f *
Q uantity :
:
:
:
Buttons
850,000
Imports a s o f
August 28 , 19i*8
Gross
17 6 ,9 10
8 36 ,0 12
Cigars
200,000,000
Number
Coconut Oil
14*8,000,000
Pound
5 3 ,5 7 6 ,2 8 0
Cordage
6,000,000
it
1,6 9 8 ,5 7 8
Rice
1,01*0,000
n
-
l,90l*,000,000
it
U,li99,37U
3 2 2 ,7 8 3 ,9 3 0
6 , 500,000
tt
203,278
Sugars, refined )
unrefined)
Tobacco
TREASURY DEPARTMENT
Washington
FOR IMMEDIATE RELEASE,
Friday* September 10, 1943»
No. S~849
The Bureau o f Customs announced today preliminary figures showing the
imports for consumption of commodities on which quotas were prescribed by
the Philippine Trade Act of 1946 , from January 1‘
, 194$* to August 28, 1948,
inclusive, as follows:
Products of
:
Philippine Islands:
Buttons
Established Quota:
Quantity
:
850,000
Unit of
Quantity
:
:,
Imports as of
August 28, 1948
Gross
176,910
836,012
Cigars
200,000,000
Number
Coconut Oil
448,000,000
Pound
53,576,280
Cordage
6,000,000
«
1,698,578
Rice
1 ,040,000
»
-
1 ,904,000,000
ti
4,499,374
322,783,930
6, 500,000
ti
203,278
Sugars, refined )
unrefined)
Tobacco
1/ 0 ~ ~ £
IMMEDIATE RELEASE
September 7« 19*48
^^5tf
®he Bureau of Customs announced today preliminary figures shoving the
imports for consumption of commodities within quota limitations provided for
under the Cenerai Agreement on Tariffs and Trade, from the beginning of the
quota periods to August 28, 19*4-8, inclusive, as follows:
Commodity
Period and Quantity
: Unit :Imports as of
:
of
:August 28,
:Quant ity:
191*8
Whole milk, fresh or
sour
Calendar year
3 ,000,000
Callon
5,79^
Cream, fresh or sour
Calendar year
1 ,500,000
Callon
1,037
Butter
Quota ineffective for the
period April through October
Pish, fresh or froaen,
filleted, etc,, cod,
haddock, hake, pollock »
eusk, and rosefish
Calendar year
White or Irish
potatoes:
Certified seed
Other
Walnuts
12
months from
Sept. 15 , 191*7
May 22 - Dec.31,
19*48
(l)
a)
2^,930,188
Pound
First 9-month
Quota Pilled
150 #000,000
60,000,000
Pound
Pound
1 ^9,136,865
55.25u .172
3,333*333
Pound
2**3,2*i6
The proviso to Item 717(*>) limits the
imports for consumption at the quota
rate to 18,697,6*41 pounds during the
first 9 months of the calendar year.
Due to a provision of the Presidentfs proclamation Ho, 2769 of January 30,
19*48, 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, 1*4>,50*4*,779 pounds of such Cuban
tobacco were imported for consumption during the period January 1, to
August 28, 19*48, inclusive.
-
TREASURY DEPARTMENT
Washington
IMMEDIATE RELEASE,
Friday, September 10, 19A3»
No. S-850
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 August 28, 1948, inclusive, as follows:
Commodity
;
: Unit : Imports as
:
of
: of August 28,
:Quantity:
1948
Period and Quantity
•
Whole milk, fresh or
sour
Calendar year
3, OCX), 000
Gallon
5,794
Cream, fresh or sour
Calendar year
1,500,000
Gallon
1,037
Butter
Quota ineffective for the
period April through October
Fish, fresh or frozen,'
filleted, etc., cod,
haddock, hake, pollockj
cusk, and rosefish
Calendar year
White or Irish
potatoes:
Certified seed
Other
Walnuts
a)
24,930,188
Pound
12 months from 150,000,000
Sept. 15, 1947 60,000,000
Pound
Pound
149 ,136,865
May 22 - Dec. 31,3,333,333
,1948
Pound
243,246
(1)
First 9-months
Quota Filled
55,254,172
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 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. 14,504,779 pounds of such Cuban
tobacco 'were imported for consumption during the period January 1 to
August 28, 1948, inclusive*
- 3 -
purposes of taxation the amount of .discount at which Treasury bills are originallysold by the United States shall be considered to be interest.
Under Sections
and 117 (a) (1) of the Internal Revenue Code., as amended by Section lip of the
Revenue Act of I9I4I, 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
if
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
September 16« 19li8 s in cash or other immediately availippj*
able funds or in a like u ace amount of Treasury bills maturing September 16, 19ij.8 ♦
y.
/.
ip*
Cash and exchange tenders will receive equal treatment. Cash adjustments will be
Federal Reserve Baric on
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
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS*
Friday, September 10, 19U8._____
The Secretary of the Treasury, by this public notice, invites tenders/£or
$ 1.100.000,000 , or thereabouts, of
91
in exchange for Treasury bills maturing
-day Treasury bills, for cash and'
September 16. 19k8
> 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 /{nature
interest.
December 16, 19li8
—
September 16, 19liB , and
... ¿gf-*-------
, when the face amount will be payable without
They will be issued in bearer form only, and in denominations of
$1,000, $9,000, $10,000, $100,000, $900,000, 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/fefcsxtdaJC^ time, Monday. September.13. 19li8 ♦
Tenders 'vm.ll 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,, 99.929«
Fractions may not be used.
It is urged
that tenders be made on the printed forms and forwarded in the special envelopes
which will be supplied by Federal Reserve Banks or Branches on application
theref or.
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
In fo rm a tio n S e r v i c e
HEIEASE, MOBJING NEWSPAHEES
Friday^ September K b 1948#
WASHINGTON, D .C .
No. S-851
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 September 16, 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 September 16, 1948, and will
mature December 16, 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 fíeserve Banks and Branches up to
the closing hour, two o^clock p#m#, Eastern daylight saving time, Monday,
September 13, 1948# Tenders will not be' received at the Treasury Department,
Washington# Each tender must be for an even multifile 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 suppled 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 <e 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 Banks on
September 16, 1948, in cash or other immediately available funds or in a like
face amount of Treasury bills maturing September 16, 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
2nd 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*'prin-:cipal or interest thereof by any State, or any of the possessions of the
United States, or by any local taxing5authority. For purposes of taxation
the amount of discount at which Treasury bills are originally sold by the
United States shall fee considered- to b e :interest. Under Sections 42 and
117 (a) (1) of the Internal Revenue, Code, as amended b y Section'115 of the /'
Revenue act of 1941> the amount Pf discount at which bills issued hereunder
are sold shall not b e .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 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
FOR IMMEDIATE RELEASE
September-^!
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
as amended, for the period September 20.
194-7? to August 28,
1948? are as follows:
\
' ' ■%.........' "VCOTTON (other than linters)
(In pounds)
Country of
Origin
Under 1-1/8” other
than rough or harsh
under 3/4-n
;Established Imports Sept.
:
Quota
20, 1947? to
Aug# 28, l?li8
Egypt and the
Anglo-Egyptian ‘
Sudan:1' .;.....:.
783> 816
Peru.. . . . . . - 247,952
British'India.;i 1 2;003,483
China.*........:; 1,370,791
M e x i c o . 8,883,259
Brazil...........
618,723
Union of Soviet
Socialist Repub
lics.....
475,124
Argentina*
5,203
Haiti;.1.1 i. ■g'll
237
Ecuador. •*
9,333
Honduras.... ...
752
Paraguay.;;;;;;;;
871
Colombia ;
324
Iraq.............
19 $
British *East....
Africa...........
2,240
Net herland s *East *
I n d i e s ..;. ;;; .;
71,388
Barbados.........
Other British'
West Indies l/...
2lj32l
Nigeria.... .
5,377
Other British
West Africa 2/...
16,004
Other French
Africa 3A .......
689
Algeria and Tunisia
-
2^7,952
l^I/W or
more J Less than 3/4”
g y j 1” * or ro^ha
Imports Sept.
20, 1947? to
Aug« 28, I I
948
Imports Sept. 20,
1947? to August
283 l$>lt6
k7,633,kk5)VU)
2,002,277)
271,932
kit,16k,731
8,883,2$9
618,723
U75,12k
177,9k? ^
14,516,882
10,k?6,990
k9,813,671(Ai
kk,16k,731
Other than Barbados, Bermuda, Jamaica, Trinidad, and Tobago.
Other than Gold Coast and Nigeria.
Other than Algeria, Tunisia, and Madagascar.
The quota of kS,656}k20 pounds established by the President's Proclamation
Mo. 2351 "as filled on September 22, 19k7k/a These figures include k,058,973 pounds of Egyptian and 98,278 pounds of
5/
Peruvian cotton charged during the period July 20 to August 28, 19k8, to the
additional quota provided in the President's Proclamation No. 2800.
Established quota - 70,000,000 .
TREASURY DEPARTMENT
Washington 25
IMMEDIATE r e l e a s e
Friday. September 10*_ 19AS
for
No* S-852
The Bureau of Customs announced today that preliminary data on imports of
co tto n and cotton waste chargeable to the quotas established by the President *s
p ro cla m a tio n of September 5, 1939, as amended, for the period September 20,
1947, to August 28, 1948- inclusive, are as follows:
COTTON (other than linters)
(In pounds)
'V
Under 1-1/8” other
Country of :
than rough or harsh
Orgin
i________ under 3/4»
.
"
Established
Imports Sept*
Quota
20, 1947, to
• • _____________ Aug* 28, 1948
Egypt, .and the
Anglo^Egyptian
783,816
Sudan* ,.,**....
Peru**.*......
247,952
British India* 2 ,003,483
China **. .*■**. 1 ,370,791
Mexico* ••'•;•*.• 8,883,259
Brazil*... *.... *
618,723
Union of, Soviet
Socialist Re pub—
lies* ........ . « 475,124
Argentina.,*.*,
5,203
Haiti..........
237
Ecuador
9,333
752
Honduras *••••••
Paraguay.......
871
Colombia
124
Iraq...........
195
British East
Africa....,..*.,
.2,240
Netherlands East
Indies.........
71,388
Barbados•••••••
Other British
best Indies 1/,
21,321
Nigeria........
5,377
Other British •
lest Africa 2/.
16,004
Other French
Africa 3/......
689
Algeria and Tunisia
-
-
247,952
271,932
1-1/8" or more
Less than 3/4”
but less than
harsh or rough ¿/
l-ll/lOLM.-- --------- ■.Imports Sept.
Imports Sept* 20,
20, 1947, to
1947, to August
Aug* 28. 1948
28. 1948
47,-633,445) f
2,002,277) ^
,
;
44,164,731
8,883,259
618,723
475,124
177,949
_
14,516,882
10,496,990
49,813,671(4a)
44,164,731_______
l/ Other than Barbados, Bermuda, Jamaica, Trinidad, and Tobago.
2/ Other than Gold Coast and Nigeria.
3/ Other than Algeria, Tunisia, and Madagascar.
4/ The quota of 45,656,420 pounds established by the President's Proclamation
.No* 2351 was filled, on September 22, 1947*
V^These figures include 4,058.973 pounds 'of Egyptian and 98,278 pounds of
Peruvian cotton charged during the period July 20 to August 28, 1948, to the
additional quota provided in the President's Proclamation No. 2800.
5/ Established quota - 70,000,000.
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 MANUFACTUH3SD OR OTHERWISE ADVANCED IN VALUE: Provided, howrver, that
not more than 33-1/3 percent of the quotas 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, Prance,
Netherlands, Switzerland, Belgium, Germany, and Italy:
! Established !' *«tal imports ¡Established!
Imports
Country of Origin : TOTAL QUOTA * Sept. 20, 1947,1 33-1/3% off Sept. 20, 194? ,
;
: to Aug* 28 5 191*8Total Quota.? to Aug* 28, ' l l
------------------------------------- ÜS---- >------------------------ 1958---United Kingdom....
Canada..... ,......
Prance.............
British India.....
Netherlands.......
Switzerland........
Belgium...........
J apan.............
China...........
Egypt.............
Cuba...... *.......
Germany..... ......
Italy.............
Totals
4,323,457
239,690
227,420
69,627 ;
68,240
44,388
38,559
341,535
17,322
8,135
6,544 i
76,329
21,263 j
5,482,509
2 5 ,17 2
175,266
-
69,627
|
270,065
1/ Included in total imports, column 2.
- 0 O 0 -
1,441,152
75,807
1
22,747 j
14,796
12,853
25,443
7,088
1,599,886
1 5 ,m
—
mm
1
.j
ig,yp
1
FOR IMMEDIATE RELEASE-,
September
. ’
J:r ISnS h£_£
The Bureau of Customs announced today preliminary figures showing the
quantities of wheat and wheat flour entered, or withdrawn from warehouse, for
consumption under the import quotas established in the President*s proclamation
of May 28, 1941, as modified by the President’s proclamations of April 13, 1942,
and April 29, '1943, for the 12 months commencing May 29, 1948, as follows:
Wheat
Country
of
Origin
"Established
Quota
(Bushels)
Canada
795,000
*China
—
Hungary
Hong Kong
■—
Japan
Jnited Kingdom
100
Australia
Irermany
100
Syria
100
Jew Zealand
—
Chile
Jether lands
100
Argentina
2,000
Italy
100
Cuba
1,000
France
reece
Mexico
' 100
'anama
rruguay
—
'oland and Danzig
»Weden
'ugoslavia
'orway
.Canary Islands
lumania
1,000
ruat emald
100
100
brazil
Jnion of Soviet
Socialist Republics
100
Belgium
100
800,000
:
Imports
:May 29, 1948, to
.•August 28* 19li8
(Bushels)
33
—■
■*■»
•»
—
«*
—
—i
mm
.—
—
—
**
—
—.
—
T
■■ —
-*
—
—
—
—
•
-
u
oQo-
'
Wheat floiir, semolina,
crushed or cracked
wheat, and siMlar
wheat products
Established J „ Imports
Quota
: May 29, 1948,
: to August 28,
(Pounds)
(Pounds)
3,815,000
24,000
13,000
13,000
8,000
75,000
1,000
5,000
5,000
1,000
1,000
1,000
i4,0OO
2,000
12,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
160
mm
.mm
mm
**
**■
**
**
*■ *
*•*
**
**.
mm
—
*•
*■
mm
mm
—
— .
—
**
s*
—
—
4,000,000
WMA
wrgss
-
TREASURY DEPARTMENT
Washington 25
FOR M E D I A T E RELEASE,
FridayV September 10» 194-8»
No# S-853
The Bureau of Customs announced today preliminary figures showing the
q uantities of wheat and wheat flour entered, or withdrawn from warehouse, for
consumption under the import quotas established in the President’s proclamation
of May 28, 1941, as modified by the President’s proclamation of April 13, 1942,
and April 29, 1943, for the 12 months commencing May 29, 1948, as follows:
Country
of
Wheat flour, semolina,
crushed or cracked
Wheat
wheat, and similar
wheat products
: imports
:Established
:
Imports
Established
:May 29, 1948,
:
Quota
:May 29, 1948 to
Quota
:to August 28, 1948
:August 28, 1948
(pounds)
(Pounds)
(Bushels) v
(Bushels)
795,000
Canada
—
China
Hungary
Hong Kong
Japan
100United Kingdom
A u s tr a lia
100
Germany
100
S y ria
—
New Zealand
Chile
100
N etherlands
2,000
A rgentina
It a ly
100
4.
Cuba
1,000
France
—
Greece
100
Mexico
Panama
Uruguay
—
Poland and D an zig
—
Sweden
—
Y u g o sla v ia
4
Norway
Canary I s la n d s
1,000
Rumania
100
Guatemala
100
B r a z il
Union of Soviet
Socialist Republics
100
Belgium
100
800,000
13
.4
-r4:
—
'4
—
- .
-
3,815,000
24,000
13,000
13,000
8,000
75,000
1,000
5,000
5,000
1,000
1,0001,000
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
140,402
160
—
—
4
—
4
—
■—
—
—
—
-'
—
.
—
—
-
- •
—
—
—
—
—
—
—
**•
13
4,000,000
4
— •
*-oOo<
140,562
** 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:
:Established:
Imports
i Established : Total inports
Country of Origin : TOTAL QUOTA ; Sept 0 20,. 1947, : 33-1/3$ of:Sept 0 20, 1947
: to Augo 28, 1948 ;Total Quota:to Augo 28.1948 1/
.«
*
United Kingdom 0f>00
Canada © o o o o o o o o o o o
France o o o o-© o o ©©o ©©
British India © © o © o
Netherlands © © © o © © ©
Switzerland o o o©© o ©
Belgium © o o o o o o o o o o
Japan ©©o o o o o o o o o o o
China o o o o o a o o o o o o o
■^SFP^1 0<»«00»»00009
Cuba o o o o o o o o s o o o o o
Germany o o o o o o o o o o o
Ioaly 6000000000000
Totals
4,323,457
239,690
227,420
69,627
68,240
25,172
1 ,441,152
175,266
—
69,627
—
75,807
-
19,703
-
22,747
14,796
44,388
38,559
341,535
17,322
8,135
6,544
12,853
—■
—
.—
76,329
25,443
21.263
7,088
5,482,509
270,065
1/ Included in.total imports, column 2 0
o0 o
1 , 599,886
19,703
we Know t h a t the America of the future
wi l l
be an even g r e a t e r and an even
more prosperous
land.
p a t t e r n of t h e i r c o u n t r y ' s h i s t o r y .
Today,
in c i t i e s ,
t owns ,
and c ount i e s
ever ywher e a c r o s s Amer i c a,
e n l i s t e d m i l l i o n s of
we have
v o l u n t e e r s who -
e q u a f i y c o ur a g e o us and ever y b i t
d e t e r mi n e o - -
a r e once a g a i n engaged
in s h a p i n g a b e t t e r ,
for
this
vision,
country.
b r i g h t e r des t i ny
Be c a us e of t h e i r
your v i s i o n ,
your f a i t h , , - -
as
their
--
their
faith,
hard work,
your
s
hard work,
devotion,
--
their unselfish
your u n s e l f i s h d e v o t i o n ,
--
$47 b i l l i o n s
worth of S a v i ng s
Bonos can mean a b e t t e r ,
a finer,
a more s e c u r e Amer i ca.
Be c a us e o f t h i s S a v i n g s Bonds
program t o which a l l
of you a r e
d e v o t i n g your e n e r g i e s ,
of t he f u t u r e w i l l
be a b e t t e r
in wnich t o grow up,
to
live,
the America
and a b e t t e r
a better
pl ace
pl a c e
ano s a f e r
pl ace
in which to grow o l d .
One hundred and s e v e n t y - t h r e e
y e a r s ago a l i t t l e
band of cour ageous
and de t e r mi ne d v o l u n t e e r s changed the
education for
women.
1 1 , 7 5 0 , 0 0 0 men and
That i s 36 t i m e s t h e number
o f s t u d e n t s whi ch would n o r ma l l y
enter college
t h i s yeaj^jll^
11
11
Or $47 b i l l i o n s
in S a v i n g s Bonds
c o u l a mean 4 , 7 0 0 , 0 0 0 mort gage f r e e
homes.
47 b i l l i o n s
worth o f S a v i n g s
Bonds means g r e a t e r o p p o r t u n i t i e s f or
all
our p e o p l e ,
ana want,
and f reedom from care
which a l I
t oo o f t e n b e s e t
Bonds o u t s t a n d i n g
individual
in t he hands of
Amer i c ans .
Th i s
t r u l y overwhel mi ng f i g u r e .
is a
Only
when we t r a n s l a t e and r e i n t e r p r e t
t h i s v a s t sum in t er ms o f what
c o ul d mean t o t he
c ompr i s e
it
i n d i v i d u a l s who
its collective
owner s hi p,
and t o the Nat i on as a whole - we begi n t o r e a l i z e
can
i t s tremendous
s i g n Îf i cance.
billion
S a v i n g s Bonds
c oul d mean a c o mp l e t e 4 - y e a r c o l l e g e
your e y e s t r a v e l
ove r
a map o f t he Uni t e d S t a t e s and no
m a t t e r where t he y come to r e s t
you'll
find
the
l o c a t i o n o f / an
i n s p i r i n g exampl e of
service
For,
volunteer
t o t he S a v i n g s Bonds program.
t h r o ug h o ut t he
l e n g t h and
b r e a d t h o f America, t h e r e a r e m i l l i o n s
of men and women who have made t h i s
Avt p r e s e n t we know that t h e r e
a r e $47 b i l l i o n s
worth of S a v i n g s
$20,150
in S e c u r i t y Bonds - -
and
s u r e l y t h a t * s a f i g u r e which e n t i t l e s
him to t a n e h i s p l a c e
in t h e
f o r e f r o n t o f our v o l u n t e e
^
——■—— ~
~~~
rMi I t on Wol f , mu s i c a l
ma n u f a c t u r e r o f Ch i c a g o ,
early
1943,
i nst r ument
has,
since
l i n e d up hundreds o f
t o p f l i g h t e n t e r t a i n e r s and used h i s
c o n n e c t i o n s wi th r a d i o ,
s t a g e and
s c r e e n persona I i t i e s t o
insure t h e i r
c o n t i n u e d c o o p e r a t i o n wi th t h e bond
program.
to the Washington Buiiding .Trades
Council,
AFL,
sold
a s s o c i a t e s and t o
to her
l abor
l a bor o r g a n i z a t i o n s
more than $ 8 0 0 , 0 0 0 worth of bonds - and she
in c o n t i n u i n g her good work.
. r
Si dney O l i v e r Helmke of
Orleans probably c o u l d n ' t t e l l
you
in s o many words how he f e e l s about
the p u b l i c s e r v i c e a s p e c t s of t h e
S a v i n g s Bonds program.
onl y 6 y e a r s o l d ,
nis
but,
For,
he i s
nevertheI e s s ,
i s an e n v i a b l e r e c o r d .
t ne S e c u r i t y Loan D r i v e ,
Duri ng
Si dne y sol d
|
• 16 —
s i n c e he came
igr f
i nt o t h e program during
t h e Fo ur t h War Loan Dr i v e Emi l i o
V e c c h i ’ s zeal
has been u n f l a g g i n g ,
h i s e n t h u s i a s m and h i s c a p a c i t y f o r
hard wor k e q u a l l y b o u n d l e s s .
all,
you need p l e n t y o f zeal
enthusiasm . . .
selI
Af t e r
...
and hard worK . . .
and
to
$ 8 , 5 0 0 , 0 0 0 worth o f bonds
single-handed.
Mrs.
Thelma Dawson, o f
Was hi ngt on,
story.
Drive,
D. C.
has an i n s p i r i n g
Duri ng t he S e c u r i t y Loan
Mrs.
Dawson,
who i s s e c r e t a r y
v Public service
is also the
c r e e d o f E mi l i o V e c c h i ,
from Des Moi nes,
Iowa,
the t a i l o r
whose shop
was c l o s e d a l mo s t c o n t i n u a l l y
dur i ng t h e S e c u r i t y Loan Dr i ve so
that
i t s owner c o u l d be out s e l l i n g
°
bonds.
Mr.
personal
to
Vec c hi c a r r i e d on a
d i r e c t mail
pr omot i on
1 , 5 0 0 o f h i s c u s t o me r s u r g i n g
them t o buy bonds ; he pa i d f o r
a d v e r t i s i n g space
newspaper s t o t e l l
s houl d
invest
in t h e
local
r e a d e r s why t hey
in S a v i n g s Bonds.
Ever
As an e x c e l l e n t exampl e,
i s Mr.
Sy Gruber of Mt,
New YorK.
Vernon,
The 5 2 - y e a r - o l d Mr.
has made h i s
Gruber
l i v i n g as an
e n c y c l o p e d i a sa l.esmen s i n c e
f
on s commi ssi on b a s i s - dur i ng t he e v e n i n g s ,
1342
but onl y
and on
/
S a t u r d a y s and Sundays.
devotes a l l
there
T h i s man
t h e r e s t o f h i s t i me
t o s e l l i n g Uni t e d S t a t e s S a v i n g s
Bonds.
He is c r oud t o be a c t i n g
as h i s c o u n t r y ’ s r e p r e s e n t a t i v e
whenever he maKes a bond s a l e .
.
the t r u e s t sense,
e v e r ywhe r e .
actual
to a l l
t he people
Above and beyond an
bond p u r c h a s e ,
is the
knowledge of p a r t i c i p a t i o n
Nation's
Government.
f ittin g that since
first
It
in t he
i s onl y
the day when the
S a v i n g s Bond went on s a l e ,
mi l l i ons of men and women t hroughout
the Uni t e d S t a t e s
have gi ve n
u n s t i n t i n g l y of t h e ms e l v e s t o
t h i s program,
and have wr i t t e n
chapter a f t e r chapter
ot
unqualified success.
in a s t o r y
t hey a r e r e n d e r i n g - - no reward
beyond t he s a t i s f a c t i o n
t h a t always
comes from c o n t r i b u t i n g t o the publ i c
good.
The famous Mi nute Man o f
Lexington,
who was f o r
i d e n t i f y i n g symbol
Bonds program,
recall,
so
long t he
of t he S a v i n g s
was n5o t , / /y o u wi l l
a professional
soldier.
Mi nut e Man was a v o l u n t e e r - whi ch f o r
The
a word
y e a r s has had t he most
h o n o r a b l e a s s o c i a t i o n wi t h S a v i n g s
Bonds.
For t h i s program b e l o n g s ,
in
n
«■»
| |
«k
Yes, m i l l i o n s of Americans f irmly
believe that
it
is only prudent for
f o I ks to save through Savings Bonds,
t h a t ' s more, they are devoting
themselves wholeheartedly to the
cause of s e l l i n g Savings Bonds to
their families,
friends,
neighbors,
and feI I ow-townsmen -• not only during
dr i ve pe r i o ds ,
but r e g u l a r l y ,
a f t e r day, weeK a f t e r weeK.
day
For t hi s
they r e c e i v e no comoensstion other
than the Knowledge of the s e r v i c e
which were t he p r e d e c e s s o r s of our
S e r i e s E bonds,
y e a r s of
in a l l
were i s s ue d dur i ng
peace t o enc our age Americans
wal ks of
of t h r i f t ,
securities
Government,
t o de v e l o p habits
to s a ve f o r
needs of t h e i r
acquainting
life
the future
families,
and,
by
them wi th t h e ki nd o f
i s s ue d by t h e i r
to
i nduce them t o become
h o l d e r s of s h a r e s
in the Uni t ed
S t a t e s o f Ameri ca.
The f r u i t s
of
t h a t planning are a l r e a dy being
harvested,
a s t h e s e bonds mat ur e .
- 9 Be c a us e t hey were once known as
"Aar Bonds ” , many of us have grown
ac cus t omed t o t h i n k i n g of t h e Savi ngs
Bonds program as an out gr owt h of the
war y e a r s - - as s o me t hi ng which was
born and de ve l ope d dur i ng the
ur genc y o f t h e c o n f l i c t .
But
the
e n t i r e c o n c e p t o f the S a v i n g s Bonds
program had i t s
inception
in
a t a time when t h e p o s s i b i l i t y
1935,
of
a n o t h e r world war was remot e from
our t h i n k i n g .
The S e r i e s A,
and D bonds and t he
B, C,
”Baby Bonds ”
purchaser,
no m a t t e r who he i s or
where h i s pI a ns f o r h i s
future
l e a d,
knows t h a t t he Sa vi ngs
Bond he ho l ds
him and f o r
it
individual
is a protection for
his family;
he knows that
i s a good t h i n g f o r h i s n e i g hb o r s
and f r i e n d s
bonds;
and t h e i r f a m i l i e s
to own
he knows t h a t t h e s e b e n e f i t s
a r e e x t e nde d t o
in which he
i nc l ude the community
lives,
t he s t a t e of
which t h a t community
is a p a r t ,
and the Nat i on as a whol e.
all
Ameri cans - -
t he h a r v e s t t h a t
never f a i l s .
For the t r u l y amazi ng t h i n g
about t h i s
of our s
S a v i n g s Bonds program
is t h a t
i t has so many aspects
t h a t to e v e r y group ana segment of
our p o p u l a t i o n
particular
fashion,
a distinctive
attraction.
i t appeals
in a
and ho l ds out
and e n t i r e l y
Each one of
i ndi vi dual
t h e s e groups
ana segment s has a se I f - i n t e r e s t
as wel l
as a n a t i o n a l
S a v i n g s Bonds program.
interest
in the
Every bond
To e d u c a t o r s ,
I would explain
the f unct i on of the Savings Bonds
program as a v e h i c l e for t r a i n i n g
V
a mi l l i o n Ameri can s c ho o l r o o ms
ways of t h r i f t
most
--
in the
s u r e l y one of the
i mpor t ant h a b i t s whi ch an
i ndi vi dual ,
or a n a t i o n ,
can
<
_
. _ were c a l l e d upon t o
say a few words to t h e f arm l e a d e r s
of t h e Nat i on
1 would s t r e s s Savi ngs
Bonds as an excel lent
investment for
d e m o n s t r a t i o n of t h e s o undne s s
ana e f f e c t i v e n e s s o f t he
our n a t i o n a l
work of
advertisers.
To r e t a i l e r s ,
I would p o i n t
o u t t he s i g n i f i c a n c e o f our Sa vi ngs
Bonds program as a means of bui l di ng
up g r e a t r e s e r v e p o t e n t i a l s of aef er r e
p u r c h a s i n g power
c o mmuni t i e s .
in t h e i r
i ndi v i dua l
I would make c l e a r
how g r e a t an e f f e c t such f u t u r e
s pendi ng would have on a communi t y' s
we I I - b e i ng.
f rff
4
To t he r e p r e s e n t a t i v e s of
labor,
I would r e p e a t
the advant ages
t o t h e members of t h e i r organ i z a t i ons
of havi ng
i ndi vi dua l
reserves
s a v i n g s t o pr ovi de f o r
all
of
f i nanci al
#
iu n a t i o n a l
speak
1 would
in t h e i r own l anguage about
S a v i n g s Bonds.
u s e r of the
For,
as t he g r e a t e s t
v a r i o u s mass media o f
communi Cati on
vital
advertisers,
in t e l l i n g
and d r a ma t i c s t o r y ,
Bonds a d v e r t i s i n g
i t s own
Savings
is an e x c e l l e n t
- 3 of the Payr ol l
p f§:
Savings Plan.
I wouId^show c l e a r l y ,
t ha t
in
p l a n t s and f a c t o r i e s where t h i s
•
|
Plan is f unct i oni ng e f f i c i e n t l y ,
i t has made a marned c o n t r i b u t i o n
to the r e duc t i on in absenteeism and
,
accidents;
personnel
i
to the decr eas e
in
t ur nover ; and, most
important of a l l ,
which we c a l l
to the i nt angi bl e
’' pl ant morale" - -
t h a t r e l a t i o n s h i o between employer
and employee •- which has been
maintained a t a c o n s i s t e n t l y high
I ev e I .
/
Savings Bonds from the st andpoint
of
long-range investments for
security,
both f o r
i ndi vi dual s
ana f or c o r p o r a t e groups.
I
would r e pe a t what they a l r eady
know so well - - t h a t Savings
Bonds, backed by the
integrity
of the United S t a t e s Government,
insure a s af e
investment.
If l were appearing before
a gat her i ng of top i nd u s t r i a I i s t s ,
I would s t r e s s the manifold meri t s
If I were speaking to a group
of the banking f r a t e r n i t y .
I would
di s c u s s the Savings Bonds program
in terms of the management of our
nat i onal
debt.
I would reemphasize
t h a t the widest possi bl e
d i s t r i b u t i o n of t h a t debt is one
of the wise and sound approaches
to deb
If l were addressi ng a
meeting of investment bankers,
I would t a l k to them about
ADDRESS BY SECRETARY SNYDER
before the
SALES DEVELOPMENT CONFERENCE
of the
UNITED STATES SAVINGS BONDS DIVISI
ST. PAUL. MINNESOTA
F r i da y , September IT,
1948
V
The f o l l o w i n g ad d r e s s by S e c r e t a r y S n y d e r bef6 r e the
Sales D e v e l o p m e n t C o n f e r e n c e of the U n i t e d Stat e s Savings
Bonds Division, H o t e l Lowry, St* Paul, M i n n e s o t a , JLs scheduled!
for d e l i v e r y at 8
C e n t r a l S t a n d a r d Time, Friday"!
S e p t e m b e r 17. 1 9 . 4 8 » and is for r e l e a s e at that t i m e l y
TREASURY DEPARTMENT
'Washington
The.following address by Secretary Snyder before the
Sales Development Conference of the United States
Savings Bonds Division, Hotel Lowry/ St. Paul,
Minnesota, is scheduled for delivery at -8 P .M. Cen
tral Standard Time, Friday, September 17-, lQl S / and
and is for release at that time.
If I were speaking to a group of the banking fraternity,
I would discuss the Savings Bonds program in terms of the man
agement of our national debt. I would reemphasize that the
widest possible distribution of that debt is one of the wise
and sound approaches to debt management. If I were address
ing a meeting of investment bankers, I would talk to them
about Savings Bonds from the standpoint of long-range invest
ments for security, both for individuals and for corporate
grohps. I would repeat what they already know so well - that
Savings Bonds, backed by the integrity of the United States
Government, insure a safe investment.
If I.were appearing before a gathering of top industrial
ists, I would stress the manifold merits of the Payroll Sav
ings Plan. I would show clearly, that in plants and factories
where this Plan is functioning efficiently, it has made a
marked contribution"to the reduction in absenteeism and ac
cidents; to the decrease in personnel turnover; and, most im
portant of all, to the intangible which we call "plant morale"
that relationship between employer and employee -- which has
been maintained at a consistently high level.
To the representatives of labor, I would repeat the ad
vantages to the members of their organizations of having indi
vidual reserves of savings to provide for all financial needs.
To national advertisers, I would speak in their own language
about Savings Bonds . For, as the greatest user of the various
mass media of communication in ..telling Its own vital and
dramatic story, Savings Bonds advertising is an excellent
demonstration of the soundness and effectiveness of the work
of our national advertisers. To retailers, I would point out
the significance of our Savings Bonds program as .a means of
building up great reserve potentials of deferred purchasing
power in their individual communities. I would make clear how
great an effect such future spending would have on a community
well-being.
To educators, I would explain the function of the Savings
Bonds program as a vehicle for training our yopth in more than
a quarter of a million American schoolrooms in the ways of
thrift -- surely one of the most important habits which an
individual, or a nation, can cultivate. And if I were^called
upon to say a few words to the farm leaders of the Nation I
would stress Savings Bonds as an excellent investment for all
Americans -- the harvest that never fails.
For the truly amazing thing about this Savings Bonds pro
gram of ours is that it has so many aspects that to every
group and segment of our population it appeals in ..a. particular
fashion, and holds out a distinctive and entirely individual
attraction. Each one of these groups and segments has a selfinterest as well as a national interest in the Savings Bonds
program. Every bond purchaser, no matter who he is or where
his plans for his individual future lead, knows that the Sav
ings Bond he holds is a protection for 'him and for his family;
he knows that it is a good thing for his neighbors and friends
and their families to own bonds; he knows that these benefits
are extended to include the community in which he lives, the
state of which that community is a part, and the Nation as a
whole.
Because they were once known as "War Bonds”, many of us
have grown accustomed to thinking of the Savings Bonds pro-gram as an outgrowth of the war years - - a s something which
was born and developed during the urgency of the conflict.
But the entire concept of the Savings Bonds program had its
inception in 1 9 3 5 , at a time when the possibility of another
world war wo.s remote from our thinking. The Series A, B, C,
and D bonds and the "Baby Bonds" which were the predecessors
of our Series E bonds, were issued during years of peace to
encourage Americans in all walks of life to develop habits of
thrift, to-save for the future needs of their families, and,
by acquainting them with the kind of securities issued by
their Government, to induce them to become holders of shares
in the United States of America. The fruits of that planning
are'already being harvested, as these bonds mature.
Yes, millions of Americans firmly believe that it is
only prudent for folks to save through Savings Bonds. What’s
more,- they are devoting themselves wholeheartedly to the
cause of selling Savings Bonds to their families, friends,
neighbors, and fellow-townsmen -- not only during drive per
iods, but regularly, day after day, week after week. For
this they receive no compensation other than "the knowledge
of the service they are rendering -- no reward beyond the sat
isfaction that always comes from contributing to the public
good.
The famous Minute Man of Lexington, who was for so long
the identifying symbol of the Savings Bonds program, was not,
you will recall, a professional soldier. The Minute Man was
a volunteer -- a word which for-years has had the most hon-- orable association with Savings Bonds. For this program be
longs, in the truest sense, to all the people evei^ywhere.
Above and. beyond an actual bond purchase, is the knowledge of
participation in the Nation’s Government. It is only fitting
that since the day when the first Savings Bond went on sale,
millions of men and women throughout the United States have
given unstintingly of themselves to this program, and have
written chapter after chapter in a story of unqualified suc
cess .
As an excellent example, there is Mr. Sy Gruber of M t .
Vernon, New York. The 52-year-old Mr. Gruber has made his
living- a,s an encyclopedia salesman since 19 ^ 2 on a commission
basis -- but only during the evenings, and on Saturdays andSundays. This man devotes all the rest of his time to sell
ing United States Savings Bonds. He is proud to be acting
as his country’s representative whenever he makes a bond
sale. Public service is also the creed of Emilio Vecchi, the
tailor from Des Moines, Iowa, whose shop was closed almost
continually during the Security Loan Drive so that its owner
could be out selling bonds. Mr. Vecchi carried on a personal
direct mail promotion to 1 , 5 0 0 of.his customers urging them
to buy bonds; he paid for advertising space in the local news
papers to tell reorders why they should invest in Savings
Bonds. Ever since he came into the program during the Fourth
War Loan Drive Emilio Vecchi’s zeal has been unflagging, his
enthusiasm and his capacity for hard work equally boundless.
After all, you need plenty of zeal ... and enthusiasm ... and
hard Work ... to sell $8,500,000 worth of bonds -single-handed.
Mrs. Thelma Dawson, of Washington, D. C., has an inspir
ing story . During the. Security Loan Drive, Mrs .'‘'Dawson, who
is secretary to the Washington Building Trades Council, AFL,
sold to her labor associates and to labor organizations .more
than $800,0 00 worth of bonds -- and she is continuing her good
work. Sidney Oliver Helmke of New Orleans probably couldn’t
tell you in so many words how he feels about the public service
aspects of the Savings Bonds program. For, he is only six
years old, but, nevertheless, his is an enviable record. Dur-.
ing the Security Loan Drive, Sidney sold $20,150 in Security
Bonds -- and surely that’s a figure which entitles him to
take his place in the forefront of our volunteers. Milton
Wolf, musical instrument manufacturer of Chicago, has, since
early 1 9 ^3 , lined up hundreds of topflight entertainers and
used his connections with radio, stage and screen personalities
to,, insure their continued cooperation with the bond program.
Let your eyes travel over a map of the United States and
no matter where they come to rest you’ll find the location of
an inspiring example of volunteer service to the Savings Bonds
program. For, throughout the length and breadth of America
there are millions of men and women who have made this Sav
ings Bonds program their own. At pres-ent we know that there
are. $47 billions worth of Savings Bonds outstanding in the
hands of individual Americans. This is a truly overwhelming
figure. Only when we translate and reinterpret this vast
sum in terms of what it could mean to the individuals who
comprise its collective ownership, and to the Nation as a
whole -- can we begin to realize its tremendous significance.
Forty-seven billion dollars in Savings Bonds could mean
a complete 4-year college education for 1 1 ,7 5 0 ,0 0 0 men and
women. That is 36 times the number of students which would
normally enter college this year. Or $47 billions in Savings
Bonds could mean 4,700,000 mortgage free $10,000 homes. Thus
$47 billions worth of Savings Bonds means greater opportuni
ties for all our people, and freedom from care and want,
which all too often beset old age; $47 billions worth of Sav
ings Bonds can mean a better, a finer, a, more secure America.
Because of this Savings Bonds program to which all of
you are devoting your energies, the America of the future
will be a better place in which to grow up, a better place
to live, and a better and safer place in which to grow old.
One hundred and seventy-three years ago a little band of
courageous and determined volunteers changed the pattern of
their country's history. Today, in cities, towns, and counties
everywhere across America, we have enlisted millions of vol- "
unteers who -- equally courageous and every bit as deter
mined -- are once again engaged in shaping a better, brighter
destiny for this country. Because of their vision, your
vision, -- their faith, your faith, -- their hard work, your
hard work, -- their unselfish devotion, your unselfish de
votion, -- we know that the America of the 'future will be* an
even greater and'an even more prosperous land.
- 0 O0 -
u s i , MDBiraa wmpAmta,
Tuesday, Sapteaher 14, 1946.
Tije i ecretary of the Treasury announced last evening that the tenders for
#1,100,000,000, or thereabouts, of 91-dey Treasury hills to he dated September 16, and
to nature December 16, 1948, which were offered September 10, 1948, were opened at the
Federal Feserre Banks on September IS*
The details of this issue are as felloes:
Total applied for * #1,685,109,000
Total accepted
- 1,100,616,000
Average price
(Includes #48,568,000 entered on a noncompetitive has is and accepted in full at
the average price shown below)
- 99.986/ Equivalent rate of discount approx. 1.083$ par annus
Bange of accepted competitive bids:
High
Low
(Excepting one tender isf #800,000)
- 99.935 Equivalent rate of discount approx. 1.048$ per annua
1.088$ *
*
(65 percent of the amount hid for at the low prloe was accepted)
Federal Heserve
District
Total
Applied for
Total
Accepted
Boston
New York
Philadelphia
Cleveland
Blehmond
Atlanta
Chicago
St. Louis
Minneapolis
Xhnsas City
Dallas
San Francisco
|
#
TOTAL
25,541,000
1,423,868,000
2.638.000
12,280,000
4.655.000
3.655.000
104,381,000
3.921.000
8.660.000
19.063.000
9,661,000
68.986.000
#1,685,109,000
23,106,000
860,960,000
2.488.000
12,280,000
4.655.000
3.655.000
86,181,000
3.921.000
8.660.000
16.863.000
9,261,000
68.986.000
#1,100,616,000
TREASURY DEPARTMENT
In fo rm a tio n S e r v i c e
WASHINGTON, D .C
REIEASE, MORNING NEWSPAPERS,
Tuesday» September 14, 1948*
N o . S-855
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
September 16, and to mature December 16, 1948, which were offered September 10,
194.8, were opened at the Federal Reserve Banks on September 13*
The details of this issue are as follows*
Total applied for - $1,685,109,000
Total accepted
- 1,100,616,000 (includes $48,568,000 entered on a non
competitive basis and accepted in full
at the average price shown below)
Average price
- 99*726/ Equivalent rate of discount approx* 1*083$
per annum
Range of accepted competitive bids*
High
Low
(Excepting one tender of $200,000)
- 99*735 Equivalent rate of discount approx* 1*048$
per annum
- 99*725 Equivalent rate of discount approx* 1*088$
per annum
(65 percent of the amount bid for at the low price was accepted)
Federal Reserve
District_____ _
Total
Applied for
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St* Louis
Minneapolis
Kansas City
Dallas
San Francisco
$
TOTAL
25,541,000
1 ,423,868,000
2,638,000
Total
Accepted
$
12,280,000
4,655,000
3,655,000
104,381,000
3,921,000
8,660,000
17,063^000
9,661,000
68,786»000
23,106,000
860,760,000
2,488,000
12,280,000
4,655,000
3,655,000
86,181,000
3 ,921,000
8,660,000
16,863.000
9,261,000
68,786,000
$1,685,109,000
$1,100,616,000
j5- S
25
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TREASURY DEPARTMENT
Wa s h i n g t o n , d . c .
In fo rm a tio n S e r v i c e
KEEEASE, MOWING PiffiEES,
Wednesday» September 15* 194B*
No, S-856 ,
During the month of August, 1948* market trans
actions in direct and guaranteed securities of the
Government for Treasury investment and other accounts
resulted in net purchases of
Snyder announced today*
0O0
369,000, Secretary
Comparison of principal items of assets and liabilities of national banks - continued
(In thousands of dollars)
Increase or decrease :Increase or decrease
June 3 0 , since Apr. 12, 19l*8 :since June 30. 19l*7
June 30. ! Apr. 12,
1 9 U8
:
;
1 9 U7
; Amount
: Percent
: Percent : Amount
•
LIABILITIES
Deposits of individuals, partner
ships and corporations:
1.0 1
.15
$69,530
$U52.657
Demand..................... $1*5,203,667 iU5 .1 3 U . 1 3 7 $1*1*,751,0 10
1
.1*8
1 8 ,5 5 6 ,6 0 6
63,656
27U.275
IS,830,SSI 1 8 ,7 6 7 ,2 2 5
Time.......................
.31*
U97.00U
-IO.5 6
-1 6 1 , 1 6 7
5 7 .2 6
868,01*9
1 ,5 2 6 ,2 2 0
Deposits of U, S. G-overnment.......
1,365,053
.18
.2 1
6
2,804
5
2,803
2,809
Postal savings deposits............
Deposits of States and political
13.1*1*
U,5 6 2 ,7 1 6
U,9 0 7 ,2 6 8
6 1 3 ,0 9 5
2 6 8 ,51*3
5.1*7
subdivisions....................
5,175,811
-1 2 8 , 1 7 6
-I.7 2
2 7 0 ,9 6 6
7.03U.821
Deposits of banks.................
3-85
7.U33.963
7,305,787
Other deposits (certified and cash
-8 .6 8
-1 0 6 .0 2 1
1 .2 2 2 .0 0 1
21.208
I.9I+
1.115.980
1 .09U .7 7 2
iers* checks, etc.).............
~7oiT
2.07
532.7U2
1 ,6 0 2 ,8 3 9
Total deposits....... ....... 78,999,988 7 8 ,1*6 7 ,2 4 6
77,3971359"
Bills payable, rediscounts, and
53.88
-109,1*1+1+ -71.85
15,011
2 7 ,8 6 0
other liabilities for borrowed money
1*2,871
15 2 ,3 15
-17.181*
-2,23
.72.91U
10.73
Other liabilities.... ....... .....
769 .6 69
752.U85
679.571
Total liabilities, excluding
2 .16
1 .690 .76 U
1*0 6 .Ill*
79,389.230 78.101*.580
capital accounts............ 79.795.3UU
.51
CAPITAL ACCOUNTS
Capital stock:
-l*,l*6l -I5 .7 3
23,898
-5 .3 O
Preferred............... .
28,359
-1 , 3 3 7
2 5 ,2 3 5
2.20
1 .7 U2 . 5 1 2
Common......................
1 .77 U . 7 1 3
6 .1 9 2
.35 ...38,393
1.780.905
1.92
t s k
.27
1.770.871
Total....................
33,932
1 799 9U8
1.804.803
5.22
3 2 ,0 0 6
2 ,1*5 1 ,1*88
1.32
Surplus.........................
121,537
2,329,951
11.01
Undivided profits... .............
9 6 ,2 9 3
9 6 1,7 9 0
87U.798
9,301
•97
971,091
l+.l+l
-3 9 .0 6 2
-1 U.67 U
333.060
318.386
357.1*1*8
Reserves........................
-10.93
Total surplus, profits, and
2,2U£
.0 6
2 0 3 ,1 5 6
3.738.720
reserves..................
3 .7U0 .9 6 5
3.537.809
..5-.JU
237,088
5.538.668
5.308.680
4.1*7
5.5U5.768
Total capital accounts...... .
7.100
.13
Total liabilities and capital
2.31
85.3l*l.U2 SU.927.898 83.Ul3.260
U1 3 .2 1 U
1 .9 2 7 .8 5 2
accounts..................
.1*9
Percent
Percent
Percent
Ratios:
1*2 .1*5
U.S.CovH securities to total assets
U3 . 5 1
1*7.27
2 5 .6 9
2 6 .13
Loans and discounts to total assets
22.55
6.86
7 .0 6
7 .0 2
Capital accounts to total deposits
NOTE:
Minus sign demotes decrease.
'>s\)
Statement showing comparison of principal items of assets and liabilities of active national banks
as of June 30, 1 9 I+S, April 12, 1948, and June 30, I9 I+7
(in thousands of dollars)
Increase or decrease :Increase or decrease
since Apr. 12. 19l*8 :since June 30. 191+7
191*7
; Amount
: Percent : Amount
: Percent
-10
-Ilf
- .2 0
-.28
5 ,0 1 * ....
5,018
June 3 0 ,
Apr. 12,
iÿ+8
;
131*8
Humber of banks
5,00*1
June 30 »
ASSETS
$1 0 ,9 6 7 .0 5 3
$9 ,0*3 ,5 6 2
Loans on real estate..................
5,270,1*21
*,2 2 8 ,1 3 5
Consumer loans to individuals........
2 ,669 ,1 1 *
3,536.607
All other loans, including overdrafts. ... 2.726,779
2,869.195
Total gross loans............... >1/$2 ,5 0 0 ,8 6 0
17
Less valuation reserves...... •
1 9 7 1 gis
Net loans.................
"
1
8
.
8
1
0 . 006
$1*86.701
22.303.0*2 $21.816.3*1
U. S. Government securities:
Direct obligations..............
3 6 ,2 2 6 ,1 5 6 )
(3 9 .*1 9 ,2 2 7 ) -72 I*,21*0
3 6 ,9 5 5 .6*7
Obligations fully guaranteed.... - ,
(
6.378)
5,25D
Total U. S. securities.......
36.231 >07
36.955.647 39,*25.605
-72l*.2l*0
Obligations of States and political
subdivisions....................
3 ,2 0 7 ,8 8 8
2,900,981
3,172.597
3 5 ,2 9 1
Other bonds, notes, and debentures....
-18,900
1.9*3.659
1.962,559
1.896,733
Corporate stocks, including stocks
of Federal Heserve banks...........
■ 158.271 , 157.536 ...
735
155.33S
Total securities......... .......
1 .5 *1 ‘ 225
-7 0 7 . 1 1 4
*2.2*8,339 **,378.657
Total loans and securities......
¿3.8*4.267 ¿1*"o 61+,o80 63,188,663
-220.1+13
Currency and coin........... .........
1,087,322
1,120,3ÎS
988,288
3 2 ,9 9 2
Reserve with Federal Reserve Banks.... 11,325.S63
1 1 ,0 6 2 ,3 6 0
1 0 ,6 2 3 ,7 2 6
2 6 3 ,5 0 3
Balances with other banks........ ....
8.019.321 _7.773,739 ..I .m .5 3 ^ . 2*5,582
Total cash, balances with other
banks, including reserve balances
and cash items in process of col2 0 .1*65 .i*9 S
1 9 .3 9 5 .5 *8 .... 5*2,077
1 9 .9 2 3 , * 2 1
829!0*9 .... 9 I.5 5 O
1.031.3*7
9 3 9 .7 9 7
Total
1+1 3 ,2 11 *
85,3*1,112 8*.927.898 83,1|.13,260
1/ Beginning June 3®» 19^S, figures for various loan items are shown gross, i.e
reserves, and are not entirely comparable with prior figures.
2/ Not available.
2.23
32.50
-1+.96
" 1
T.
3.1*93.036
18.57
(-3 .1 9 3 . 0 7 1
<
-1 , 1 2 7
-1.96 -3.19*.198
-I.9 6
1.11
-.96
306,907
*6 ,9 2 6
.U7
-1 167
-•3^
2.933
-2.837.432 —
6 5 5 .60I*
132,026
702,137
235.787
3 .0 3
2.38
3 .16
2.72
|Î7*~
.1*9
2 1.2 7
2 I+.65
$1 ,9 2 3 .* 9 1
1,0*2,286
8 6 7 ,*93
-1 *2 . * 1 6
1 .0 6 9 .9 50
202.298
1 ,9 2 7 ,^ 5 2
before deduction of valuation
-8 . 1 0
-1 7 . 6 7
-8.10
1 0 .5 8
2 .* 7
1.89
-F.3 9
l!o4
13-36
6.6l
3.03
5.52
24.40
2.31
-
nearly 5 percent.
2
-
The percentage of loans and discounts to total assets on June 30,
19US was 2 6 ,1 3 , in comparison with 22,55 on June 3 0 , 19^7*
Investments by the banks in United States Government obligations (including
$5,000,000 guaranteed obligations) on June 3 0 , 19 ^ 2 aggregated $ 3 6 ,2 3 1 ,0 0 0 ,0 0 0 , which I
was a decrease of $3,200,000,000, or 8 percent, in the year.
These investments were
^2.^5 percent of total assets, compared to ^7*27 percent in June of the year previous-.
Other bonds, stocks, and securities of $5,310,000,000, which included obligations of 1
States and political subdivisions of $3,200,000,000, amounted to about the same as in
April, but were $357,000,000, or 7 percent, more than in June last year.
Cash of $1,120,000,000, reserves with Federal Reserve banks of $11,326,000,000
and balances with other banks (including cash items in process of collection) of
$8 ,0 1 9 ,0 0 0 ,0 0 0 , a total of $ 2 0 ,^6 5 ,0 0 0 ,0 0 0 , showed an increase of more than 5 percent
in the year.
The unimpaired capital stock of the banks at the end of June 19^-8 was
$1,805,000,000, including $2^,000,000 of preferred stock.
Surplus was $2,^52,000,000,
undivided profits $9 7 1 ,0 0 0 ,0 0 0 , and reserves $3 1 2 ,0 0 0 ,0 0 0 , or a total of $3 ,7 ^1 ,000,001
Total capital accounts of $5,5^,000,000, which were 7*02 percent of total deposits,
were $237,000,000 more than in June last year when they were 6 .8 6 percent of total de
posits.
TREASUHT DlPAKDKEM!
Washington
DLSASE, MOBTIÏÏG 3SEWSPAPBHS
Press Service
~l C?,
1To* - 3 - :r r ] '
The total assets of national hanks on June 30, 1 9 % amounted to more than
$S5,000,000,000, it was announced today by Comptroller of the Currency Preston
Delano.
The returns covered 5,00*4 active national hanks in the United States and
possessions.
The assets were $*400,000,000 more than reported by the 5 ,01*4 national
banks as of April 12, 19*48, the, date of the previous call, and nearly
$2,000,000,000
more than reported by the 5,018 active banks as of June 30, 19*47.
The deposits of the hanks on June 3 0 , 1 9 % were $79,000,000,000, an increase of
more than $500,000,000, or seven-tenths percent, since April, and an increase of
$1,600,000,000, or 2 percent, since June 1 9 % .
Included in the recent deposit figures
are demand deposits of individuals, partnerships and corporations of $ % , 200 ,000 ,000,
which increased $70,000,000 since April, and time deposits of individuals, partner
ships and corporations of $18,800,000,000, which increased $6^,000,000.
Deposits of
the United States government of $1,365,000,000 were $l 6 l,000,000 less than in April;
deposits of States and political subdivisions of $5,176,000,000 showed an increase of
$ 2 6 8 ,0 0 0 ,0 0 0 , or 5 percent; and deposits of hanks of $ 7 ,3 0 6 ,0 0 0 ,0 0 0 were $ 2 7 1 ,000 ,000,
or nearly 4 percent, more than in April.
Postal savings deposits were nearly
$3 .0 0 0 ,0 0 0 , and certified and cashiers' checks were $1 ,1 1 6 ,0 0 0 ,0 0 0 .
loans and discounts at the end of June 1 9 % were $22,300,000,000 after deducting
reserves of nearly $200,000,000 for possible future losses.
The net loans were more
than $%0,000,000, or 2 percent, over the amount reported as of April 12, and nearly
$3.500,000,000, or 18 percent, over the amount reported as of June 3 0 , 1 9 % .
Com
mercial and industrial loans of $1 0 ,9 0 0 ,0 0 0 ,0 0 0 were up 2 1 percent in the year, loans
on real estate of $5.200,000,000 were up
Z k percent
of $3.500,000,000 were up 3 2 percent, while all other loans of $2,700,000,000, which
included loans to farmers, advances to brokers and dealers and others for the purpose
of purchasing or carrying securities, and loans to banks, etc., showed a decrease of
*
TREASURY DEPARTMENT
In fo rm a tio n S e r v i c e
release, morning newspapers
Thursday» September 16, 194-8
WASHINGTON, D .C .
No. S-857
The total assets of national banks on June 30, 194-8 amounted to more than
185,000,000,000, it was announced today by Comptroller of the Currency
Preston Delano. The returns covered 5,004 active national banks in the United
States and possessions. The assets were $400,000,000 more than reported by
the 5,014- national banks as of April 12, 1948, the date of the previous call,
and nearly $2,000,000,000 more than reported by the 5,018 active banks as of
June 30, 1947*
The deposits of the banks on June 30, 1948 were $79*000,000,000, an
increase of more than $500,000,000, 'or seven-tenths percent, since April, and
an increase of $1,600,000,000, or 2 percent, since June 1947* Included in the
recent deposit figures are demand deposits of individuals, partnerships and
corporations of $45,200,000,000, which increased $70,000,000 since April, and
time deposits of individuals, partnerships end corporations of $18,800,000,000,
which increased $64,000,000. Deposits of the United States Government of
$1,36$,000,0C0 were $161,000,000 less than in April; deposits of States and
political subdivisions of $5,176,000,000 showed an increase of $268,000,000,
or 5 percent; and deposits of banks of $7,306,000,000 were $271,000,000, or
nearly 4 percent, more than in April# Postal savings deposits were nearly
$3,000,000, and certified and cashiers* checks were $1,116,000,000#
Loans and discounts at the end of June 1948 were $22,300,000,000 after
deducting reserves of nearly $200,000,000 for possible future losses. The
net loans were more than $480,000,000, or 2 percent, over the amount reported
as of April 12, and nearly $3,500,000,000, or 18 percent, over the amount
reported as of June 30, l947o Commercial and industrial loans of
$10,900,000,000 were up 21 percent in the year, loans on real estate of
$5,200,000,000 were up 24 percent, and consumer loans to individuals of
$3,500,000,000, were up 32 percent, while all other loans of $2,700,000,000,
which included loans to farmers, advances to brokers and dealers and others
fcr the purpose of purchasing or carrying securities, and loans to banks, etc#,
showed a decrease of nearly 5 percent. The percentage of loans and discounts
to total assets on June 30, 1948 was 26.13, in comparison with 22*55 on June 30,
1947#
Investments by the banks in United States Government obligations
(including $5,000,000 guaraa teed obligations) on June 30, 1948 aggregated
$36,231,000,000, which was a decrease of $3,200,000,000, or 8 percent, in the
year. These investments were 42*45 percent of total assets, compared to
47*27 percent in June of the year previous. Other bonds, stocks, and
securities of $5,310,000,000, which included obligations of States and polit
ical subdivisions of $3,200,000,000, amounted to about the same as in April,
but were $357,000,000, or 7 percent, more than in June last year.
i
- 2
Cash of 41,120, 000#000, reserves with Federal R e s e r v e banks of
000 and balances with other banks (including cash items in process
of collection) of $8,019«*000,000# a total of &20, Q 0 0 , 000, showed an
increase of more than 5 percent in the year*
611 .326.000.
The unimpaired capital stock of the banks at the end of June 1948 was
51.805.000. 000, including i.24,000,000 of preferred stock.. Surplus was
4)2 ,4 52 .000 ,000 , undivided profits 4 9 7 1 , 000 ,000 , and reserves ^18,000,000,
or a total of 43,741,000,000. Total capital accounts of i 5,546,000,000, which
were 7*02 percent of total deposits, were 4237,000,000 more than in June las
year when they were 6*86 percent of total deposits*
Statement showing comparison of principal items of assets and liabilities of active national banks
as of June 30, 1948, April 1 2 , 19^8, and June 3 0 , 19^7
(in thousands of dollars)
3
*
Increase or decrease :Increase or decrease
: June 3 0 , :since Apr. 12, 1948 :since June 30, 1947
? Apr. 12,
1948
î
19 ^ 8
=
; Percent : Amount
Percent
19^7
: Amount
5,004
5.0l4~
5*018
-10
-.20
S S r
-.28
June 3 0 ,
Humber of banks,
ASSETS
$>1 0 ,9 6 7 .0 5 3
Loans on real estate........ ..
5 ,2 7 0 , 4 2 1
Consumer loans to individuals,... **.... *♦'-*
3 .5 3 6 .6 0 7
All other loans, including overdrafts.....
, 2 .7 2 6 ,7 7 9
Total gross leans...............
1 /2 2 ,5 0 0 ,8 6 0
Less valuation reserves.... ......
197.818
Let loans........... ..........
22,303,042 $21,8Ï6734l
U. S. Government securities;
Direct obligations.................
3 6 ,2 2 6 ,1 5 6 )
3 6 ,9 5 5 .6^ 7
Obligations fully guaranteed....... .
5 .2 5 1 )
Total U. S. securities........ .
36,955.647
3 6 .2 3 1 . w 7
Obligations of States and political
subdivisions.......... ...........
3 .2 0 7 ,8 8 8
3.172.597
Other bonds, notes,and debentures.........
1 .9 4 3 ,6 5 9
1.962.559
Corporate stocks, including stocks
of Federal Reserve banks.
158,271
,.1 5 7 . 5 3 6
Total securities....... ..........
42,248,339
41,541 , 2 2 5
Total loans and securities....... .
6 3 ,s4h ,2 6 7
64,064,680
Currency and coin..................
1 ,1 2 0 , 3 1 4
1 ,087,322
11,062,360
1 1 ,3 2 5 ,8 6 3
8 ,0 1 9 , 3 2 1
7*773*739
$ 9 .0 4 3 ,5 6 2
4 ,2 2 8 , 1 3 5
2 ,6 6 9 , 1 1 4
2 ,8 6 9 ,1 9 5
2/
18,810,006
(3 9 ,4 1 9 ,2 2 7 )
(
6,378)
39.*+25.6 0 5
2 ,900,981
1.896.733
24.65
32.50
-4.96
2/
3 .4 9 3 ,0 3 6
18.57
$486,701
2.23
-724,240
-I .9 6
-724,240
-I .9 6
3 5 .2 9 1
1.11
- .9 6
3 0 6 ,9 0 7
.4 7
2,933
-2,837.432
655,604
- 1 8 ,9 0 0
155,338 _______735
-707.114
-220,413
63,188,663
988,288
32,992
263,503
1 0 ,6 2 3 ,7 2 6
245,582
7.783.534
4 4 ,3 7 8 ,6 5 7
$ 1 ,9 2 3 , 4 9 1
1,042,286
867,493
-l42,4i6
-I .6 7
z Æ
(-3 .1 9 3 . 0 7 1
(
-1 ,1 2 7
-3,19^,198
46,926
3-03
1 3 2 .0 2 6
2 .3 8
3 .16
702,137
235,787
Total cash, balances with other
banks, including reserve balances
and cash items in process of col
lection. ............... ......
20.465,498
19*923,421
19.395,548
1,069.950
542,077 .
2.72
Other assets***......... ...
829,049
1,031,347
9 .74
91.550
202.298
-939*797
Total assets..*.«•••.........
4i3,2i4
85.341,112
83,413,260
84,927,898
1,927,852
~ ^ 49~
•Beginning dune 3 0 , 1948, iigures for various lean items are shown gross,
e., before deduction of valuation
reserves, and are not entirely comparable with prior figures.
2/ Not available.
2 1.2 7
- 8 .1 0
-1 7 . 6 7
-8.10
10.58
2.47
1.89
-6.39
1.04
13-36
6.6 l
3>03
5.52
24.4c
2.3
Comparison of principal items of assets and liabilities of national banks - continued
(In thousands of dollars)
June 30 , ;
1948
Apr. 12,
1948
;
.
June 30,
19 A7
:Increase or decrease : Increase or decrease
:since Aur. 12, 1948
: since June 30, 1947
: Amount
:; Percent :
Amount
:; Percent
LIABILITIES
Deposits of individuals, partner
ships and corporationst
Demand ......................... $45 ,203,667 $45,134,137 $44,751,010
Time
................. .
IS,C 30 ,8S 1 18,767,225
1 8 ,556,606
Deposits of U. S. Government ....... .
1 ,526,220
868,049
1 .365.053
Postal savings deposits 0........... *
2,809
2,804
2,803
Deposits of States and political
subdivisions .......................
<5,175.8X1
4,907,268
. ¡+,562,716
Deposits of banks ...... .............
7.305.787
7,034,821
7, ¡+33,963
Other deposits (certified and cash
iers1 checks, etc.) ................
1,115,980
1,095.772
1,222,001
Total deposits ................. '78,999.988 78746TT24F
77 ,397 .i p
Bills payable, rediscounts, and
other liabilities for borrowed money
1+2,8 71
27,s 6o
15 2 ,3 15
Other liabilities ....................
769,669
752,585
679,571
Total liabilities, excluding
canital accounts ............
79,795,355 79,389,230
78,104,580
” CAPITAL ACCOUNTS
Capital stock*
Preferred .......................
23,898
25,235
28,359
1 ,780,905
1,804,803
2,451,488
Undivided profits ....................
Reserves.... ...................... .
Total surplus, profits, and
re serve s ......................
Total capital accounts ..........
Total liabilities and capital
account s .......... .
Ratios:
U.S.Gov't securities to total assets
Loans and discounts to total assets
Capital accounts to total deposits
NOTE:
Minus sign denotes decrease.
1,775,713
1,799,958
2,5l9,"582
961,790
357, ¡As
1,752,512
1.770.S71
2,329.951
$69,530
-IO .56
$452,657
274,275
497,004
6
.2 1
5
1.01
1.48
57.26
.18
268,543
270,966
5.47
3*85
613,095
13.4 4
- 128 ,176
-1.72
21,208
532.752
1.94
.t>8
- 10 6 ,0 21
1,602,839
-8.68
‘ 2.07
-109,444
-17.184
-71.85
- 2 .2 3
15,011
72,914
53.88
10.73
4o6,n4
.51
1 ,690,764
2 .16
-5.30
•35
.27
-4,46i
38,393
33.932
121.537
96,293
-15*73
2.20
1.92
5*22
11.01
-4.4i
63,656
.15
.34
-l6l,l67A
-1,337
6 ,19 2 ,
4,855
32,006
1 .3 2
333,060
9,301
“ 39,062
■ .97
-10.93
-15,675
3,738,720
5,538,668
3,537,809
5,308,620
7,100
2^255
.06
203,156
•13
237,088
5 .7 5
5 .5 7
85,341,112
84,927,898
83,¡+13,260
413,214
.49
1,927.852
Percent
42.45
Percent
A 3 .5 1
Percent
2.31
9 71,0 9 1
318,386
3 ,7 ^ ,9 6 5
STsW T tE T
26.13
7.02
25.69
7.06
874,798
47.27
22.55
6.86
■gl Secretary ot thè Treasury today announced the subseription and
allotiaant flgures with respect to the current offeriag cf 1-3/8 pereant
Treasury Notes of Serles A~1950, to be dated September 15, 19^3*
Subscriptions and allotiaents aere divided m g
the several Sederai
Reserve Bistrieta and the Treasury as Z o lla v a t
Federal Reserve
District
Total Subecriptlons
Received & Allotted
Boston
New York
Philadelphia
Cleveland
$ 100,737,000
1,751,79U,000
348,038,000
129,867,000
53,2U,000
92,639,000
579,1t52,000
Ila,0 2 1 ,0 0 0
91t,376,000
Ut3,it59,000
85,ItfaO,000
267,003,000
3,339,000
Atlanta
Chicago
St* Louis
Iftnnsspolis
Kansas City
TW11«w
San Franclsoo
Treasury
TOTAL
#
$3,595,371,000
TREASURY DEPARTMENT
WASHINGTON, D .C .
In fo rm a tio n S e r v i c e
EEIEASE, «OHJItSr, NE./SPisPKhS,
Thursday« September 16> 1948«
'
No. S-858
The Secretary of the Treasury today announced the subscription and
allotment figures with respect to the current offering of 1-3/8 percent
Treasury Notes of Series a—1 950, to be dated Septemoer 15* 1948»
Subscriptions and allotments were divided among the several Federal
Reserve Districts and the Treasury as follows:
Federal Reserve
District
___
Total Subscriptions
Received and Allotted
ft 100,73^,000
1,751,794,000
148,036,000
129,867,000
53,211,000
92,639,000
579,452,000
141,021,000
94,376,000
148,459,000
85,440,000
267,003,000
3 ,339,000
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St* Louis
Minneapolis
Kansas City
Dallas
San Francisco
Treasury
$3 , 595,374,000
TOTAL
oOo
The new in stru c tio n s take the form ©f a 16-page pamphlet, prin ted
in type s c i e n t i f i c a l l y s e le c te d fo r easy re ad in g , and phrased in every
day language^ likely to ho understood by moot taxpayer *.-!ig pcimplilet replc
a four-page leaf let, printed in small type, which had been need j
**We have attempted in t h is pamphlet to t e l l the taxpayer the th in gs
he wants to know in language he un d erstan d s," the Commissioner commented*
N a tu ra lly , prudent con sid eratio n s o f co st and law were lim itin g fa c to rs*
However, we regard t h is pamphlet as a s ig n if ic a n t step forward in our
constant e f f o r t to help the taxp ayer in the fu lfillm e n t o f h is taxpaying
o b lig a tio n s *
"We have not oontented o u rselves w ith mere r e a d a b ilit y and sim p lic ity
o f language in t h is pamphlet* We have a lso tak en .eve ry proper step to
acquaint the taxp ayer w ith the exemptions, c r e d it s , deductions, and
choices which he may le g it im a t e ly use in computing h is c o rre c t ta x * "
While designed p rim a rily fo r use in connection w ith Form 1040, the
pamphlet may a lso be o f in t e r e s t to taxp ayers who w i l l use the new
Form 1040A, and w i l l be a v a ila b le to them upon req u est a t o f f ic e s o f the
C o lle c to rs o f In te rn a l Revenue about January 1 . Persons who f i l e d
Form 1040 fo r l a s t y ea r w i l l re c e iv e the pamphlet by m ail along w ith
blank retu rn forms in accordance w ith p a st custom*
i
—* o-
-^«r-iô4^xa_similiLr
- ■f
n lifn it. l t t r | G P ^
whiohl waS-^foraerly p rin ted on the back o f Withholding State»«
(Form1 W-2) * ^
ïfm
Form 104CfA was deslj id to p reserve
s s e n t ia l s im p lio i^ o f
the Form W-2 type o f retu rn Hv. to/ improve i t s use by provid in g ijiore
space in which to w rite ; and to
s ib le ;he p rin tin g o f b a sic
in stru c tio n s an the bacjtc o f
ie page
ne form a l s o 'i s expected to
a s s i s t taxp ayers in s
iz in g th e ir wage; ‘ rom d iffe r e n t employers in
the jnany cases in whA6H taxp ayers hold more
one job during ^he year,
Employ
w i l l cortin ue to it sue W ithholiing Sta
ents to t jie ir
employees, and the employees w i l l lbe asked to a tta ch thes
tatem ents
to ^th eir income ta x re tu rn s, whether f i l e d on Form 1040 or Foi*» 1040A.
-o -
'
5 -
Sehoeneman,
rT
y
t
-
r
"
t
' 1
.
XiiiiLu
predicted that the publication would be warmly welcomed by
everyone, using the familiar Form 10^-0
purposes.
for return-making
treasury
departm ent
WASHINGTON, D .C .
In fo rm a tio n S e r v i c e
RELEASE, AFTERNOON NEWSPAPERS,
Thursday, September 16, 194-8.
No, S-859
A new and easier set of instructions on f,How to Prepare Your U. S. In
come Tax Return” came from the Bureau of Internal Revenue today, George J,
Schoeneman, Commissioner of Internal Revenue, anticipated that the publication
would be warmly welcomed by everyone using the familiar Form 104-0 for return
making purposes.
The new instructions take the form of a 16-page pamphlet, printed in
type scientifically selected for easy reading, and phrased in everyday
language. The pamphlet replaces a four-page leaflet, printed in small type,
which had been used for several years.”We have attempted in this pamphlet to tell the taxpayer the things he
wants to know in language he understands,” the Commissioner commented.
’’Naturally, prudent considerations of cost and law were limiting factors.
However, we regard this pamphlet as a significant step forward in our con
stant effort to help the taxpayer in the fulfillment of his taxpaying obliga
tions.
”We have not contented ourselves with mere readability and simplicity
of language in this pamphlet. We have also taken every proper step to ac
quaint the taxpayer with the exemptions, credits, deductions, and choices
which he may legitimately use in computing his correct tax.”
While designed primarily for use in connection with Form 104-0, the pam
phlet may also be of interest to taxpayers who will use the new Form 104-0A,
and will be available to them upon request at offices of the Collectors of
Internal Revenue about January 1, Persons who filed Form 104-0 for last year
will receive the pamphlet by mail along with blank return forms in accord
ance with past custom.
-o0o-
- 3 -
p u rp o se s o f t a x a t i o n th e amount o f d is c o u n t a t w h ich T re a s u r y b i l l s a r e o r ig i n a lly
s o ld b y th e U n ite d S t a t e s s h a l l be c o n s id e re d to be i n t e r e s t .
and 1 1 7
(a )
Under S e c t io n s 1*2
( 1 ) o f th e I n t e r n a l Revenue Code, a s amended b y S e c t io n 1 1 5 o f the
Revenue A c t o f l & l ,
th e am ount-of d is c o u n t a t w hich b i l l s is s u e d h ereu n d er are
s o ld s h a l l n o t be c o n s id e r e d t o a c c ru e u n t i l such b i l l s s h a l l be s o ld , redeemed or
^ o th e rw ise d is p o s e d o f , and such b i l l s a r e e x c lu d e d from c o n s id e r a t io n a s c a p i t a l
a sse ts.
A c c o r d in g ly , th e owner o f T r e a s u r y b i l l s
(o th e r th a n l i f e
in su ra n c e
com panies) is s u e d h e reu n d er need in c lu d e i n h i s incom e t a x r e t u r n o n ly th e
d i f f e r e n c e betw een th e p r i c e p a id f o r such b i l l s , w h eth er on o r i g i n a l i s s u e o r
on su b seq u en t p u rc h a s e , and th e amount a c t u a l l y r e c e iv e d e i t h e r ' upon s a l e o r
red em p tio n a t m a t u r it y d u r in g -t h e t a x a b le y e a r f o r w hich the r e t u r n i s made, a s
o r d in a r y g a in o r l o s s .
Treasury Department Circular So. 1*13, 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 o f T r e a s u r y b i l l s a p p lie d f o r , u n le s s th e te n d e r s a r e accom panied b y an
e x p r e s s g u a ra n ty o f payment b y an in c o r p o r a te d bank o r t r u s t company.
Im m e d iate ly a f t e r th e c lo s in g h o u r, te n d e r s w i l l be opened a t th e F e d e r a l
R e se rv e Banks and B ra n c h e s, f o llo w in g w hich p u b lic announcement w i l l be made b y
th e S e c r e t a r y o f th e T r e a s u r y o f th e amount and p r ic e ra n g e o f acc e p te d b i d s .
Those su b m ittin g t e n d e r s . w i l l be a d v is e d o f the a cc e p ta n c e or r e j e c t i o n t h e r e o f.
The S e c r e t a r y o f th e T r e a s u r y e x p r e s s l y r e s e r v e s the r i g h t to a c c e p t o r r e j e c t
an y or a l l t e n d e r s , i n w hole or i n p a r t , and h i s a c t io n i n an y such r e s p e c t s h a ll
be f i n a l .
S u b je c t t o th e s e r e s e r v a t i o n s , n o n -c o m p e titiv e t e n d e r s f o r $20 0 ,0 0 0 or
l e s s w ith o u t s t a t e d p r ic e from an y one b id d e r w i l l be a c c e p te d i n f u l l a t the
a v e ra g e p r i c e
( in t h r e e d e c im a ls) o f a c c e p te d c o m p e titiv e b i d s .
S e ttle m e n t f o r
a c c e p te d te n d e r s i n a cco rd an ce w ith th e b id s must be made o r com pleted a t th e
F e d e r a l R e se rv e Bank on
September 23» 1948 , i n c a sh or o th e r im m e d ia te ly a v a i l -
i§§T
a b le fu n d s or i n a l i k e f a c e amount o f T re a s u r y b i l l s m a tu rin g
v
*
Cash and exchange te n d e r s w i l l r e c e iv e e q u a l t r e a tm e n t.
September 23. 19k8 »
\' /
Cash a d ju stm e n ts w i l l be
made f o r d i f f e r e n c e s betw een th e p a r v a lu e o f m atu rin g b i l l s a c c e p te d i n exchange
and th e i s s u e p r ic e 'o f th e nevf b i l l s .
The income d e r iv e d from T r e a s u r y b i l l s , w h eth er i n t e r e s t or g a in from th e sale
or o th e r d i s p o s i t i o n o f th e b i l l s ,
s h a l l n o t have an y exem ption , a s su ch , and lo s s
from th e s a l e o r o th e r d i s p o s i t i o n o f T r e a s u r y b i l l s
s h a l l n o t have any s p e c i a l
t r e a tm e n t, a s su ch , under th e I n t e r n a l Revenue Code, or law s am endatory or supplemen
t a r y th e re to .
The b i l l s s h a l l be s u b je c t t o e s t a t e , in h e r i t a n c e , g i f t or o th e r
e x c i s e t a x e s , w h eth er F e d e r a l o r S t a t e , b u t s h a l l be exempt from a l l t a x a t io n now
or h e r e a f t e r im posed on th e p r i n c i p a l or i n t e r e s t t h e r e o f b y an y S t a t e , or any of
th e p o s s e s s io n s o f the U n ited S t a t e s , o r b y an v l o c a l t a x in g a u t h o r i t y .
For
'M,$3§
Tgrgy
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS*
Friday, September 17, 191*8.
pj
-
The Secretary of the Treasury, by this public notice, invites tenders for
$ 1,000,000,000 y or "tilereabouts, of
91 -day Treasury bills, for cash and
in exchange for Treasury bills maturing
September 23f 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
December 23. 19k8
> when
September 23. 19k8
* and
the face amount will be payable without
They v/ill 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., Eastern>feg§ees£83Ctime, Monday, September 2Q, 19l*8 ♦
a&x
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. .gy, 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
theref or.
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
WASHINGTON, D .C .
In fo r m a tio n S e r v i c e
KELEâSE, MOENING N®SPAKSK3>
Friday. September 17. I948e
.; •/V v- T
No* S-860
•
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 September 23, 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 September 23, 1948, and will
mature December 23, 1948, when the, face amount will be payable without
interest« They will be issued in bearer form only, and in denominations of
11,000, $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«nw, Eastern daylight saving uime, Monday,
September 20, 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,, 99c925t> 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 bcsnxs 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 tills 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 Banks on
September 23 , 1948, in cash or other immediately available funds or in a, like
face amount of Treasury bills maturing September 23, 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 billsj whether interest or gain from
the saie 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 b e 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 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 consid
er cui on 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 said 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 g o / e m the conditions of their
issue# Copies of the .circular may be obtained from any Federal Reserve Bank
or Branch#
oOo
TREASURY DEPARTMENT
' Washington
The following address by Secretary Snyder before
the annual convention of the National Association
of Supervisors of State Banks at the Brown Hotel,
Louisville, Ky., is schedule#, for delivery at 2 P.M»
C.S.T., Wednesday, September. ¿2, 19^-0, -and is for
release at, that t i m e . ~
THE BUSINESS OUTLOOK
It is a real pleasure to be here with the State Bank
Supervisors today. We meet on a common ground — a genuine
interest In the protection, development and betterment of
our banking system.
I have been associated for many years with bank super
vision under all sorts of economic conditions. I spent •
years adjusting the affairs of banks which had become in
volved in serious insolvency* I have been an active partici
pant, both as principal and as supervisor, in the making of
many Government loans -- some in cooperation with banks and
some for the purpose of enabling banks to reestablish them
selves; and I have had general direction in recent years
over the supervision of the banks of the national banking
system. On the other hand, I have also been on the receiving
side of bank supervision during the time I served as a bank
officer.
No one knows better than bank supervisors of the vast
changes which have taken place in our banking system during
the past quarter-century, and we all know tthe extent to which
those changes were beneficially influenced by bank super
visors . You are to be commended for the job you have done,
and are doing.
In my experience in banking and connection with banking
supervision, I have enquired a very strong conviction in which
I believe all of you will join. This relates to the impor
tance to successful banking of an understanding of national
and world economic trends. To a large extent, within our gen
eration, the extremes of weak and strong banking have resulted
from the foresight, or the lack of it, of the banking frater
nity and of bank supervision. For this reason, no subject
S-8 6 1
2
should he of greater significance to hank supervisors than
the underlying forpes and trends of the general economic
picture. - O
Discussion of the economic situation as it looks today,
recalls a talk that I gave before the Economic Cluh of New
York nearly two years ago, in November, 19^6. At that time,
there was great.uncertainty over the business prospect. The
stock market had broken badly in September, which led many
to believe that a business decline would shortly follow.
Business observers feared a repetition of the 1920 crash.
This fear was reinforced by a great rise in business inven
tories, which had increased more than $6.billion in four
months .
In the fall of 19^6, the production of both manufactured
goods and farm products was far above any previous peacetime
level. Industrial production was 80 percent above the 5-year
prewar average, and farm production exceeded the prewar level
by fully one-third. Civilian employment was at an all-time
record .
"How long can it last?" was the big question at that
time. A survey of the opinions of economists, bankers, and
other business observers showed a widely held belief that
business would reach a top iwithin a few months, and that by
the following summer it would start a substantial decline.
But I saw no reason to accept that opinion. For with all the
enormous resources of our country, with our huge unfilled de
mand for goods¿ and with pertain safeguards that had been in
stalled by the Government during recent years to protect our
economy, many of us did not believe that a postwar recession
was inevitable just because one occurred after World War I.
In my talk to the Economic Club, I pointed out some of
the important differences between the postwar situation of
,1920 and that of 1 9 ^6 , and stated, that in view of these dif
ferences, I could not' see. how a fair appraisal of "América
Today" could justify the feeliqg that a material recession
in "America Tomorrow" was inevitable. The events of the past,
two years have borne out this belief. Far from suffering
the recession that many had predicted, our national productión and consumption have pushed forward to new records.
The industrial production index is now about 19Q, as*
compared with l80 in the fall of 19^6. Employment has reached
new high records, with more than 6l million persons now in
civilian jobs. This does not include the Armed Forces.
Agricultural production is close to the wartime peak. Cash
farm income in the first 8 months of 19^8 was ^percent
- 3 higher than in the. same period last year. Our material wellbeing has improved substantially as more and more consumer
goods have become available.
It is important however that we distinguish between a
high-level economy and the boom stage in the so-called "bus
iness cycle". For herein, as I see it, lies the essential
difference between the preserkt economic situation and those
periods of the twenties. A high-level economy with wide
spread prosperity, such as we have today, does not necessarily
imply that the foundation must be unsound. It may well be
based on sound conditions which could be prolonged indefi
nitely, provided an, unbalanced-situation were not allowed to
develop. Let me repeat this -- for I think it touches the
heart of the whole situation. Our prosperity can be contin
ued and spread to more and more of our people — as it
should -- provided we do not allow an unbalanced condition to
develop.
Let me point out some of the factors which could be
dangerous. A typical boom stage in the business cycle can
only be temporary, because it is built on an unbalanced
foundation, generally characterized by excessive speculation.
The booms of the twenties, for example, were fed by wide
spread speculation in commodities and in rural or urban real
estate, much of which was financed with borrowed money. The
boom which ended in 19 29 was unbalanced by nation-wide" stock
market speculation which was also largely financed with bor
rowed money.
Today, it seems quite clear that neither production nor
prices are being supported by a rising tide of speculation,
such as characterized the 1920 booms. The speculative inter
est in the commodity markets is proportionately normal.
Speculation in the stock market has remained rational. Busi
nessmen generally have been cautious about expanding their
inventories. We owe this continued well-balanced situation,
in large part, to the good sense of the American people aided
by various actions and timely warning signals from the Govern
ment .
We must be constantly alert, 'however, to the potential
dangers that have threatened through growing inflationary
pressures. The outstanding need of our economy is to counter
act these pressures . The~ Government has only limited weapons
for this purpose, but the Government is vigorous in using
those that it h a s . Let no one have any doubt about this. One
of these weapons has been the policy of directing debt man
agement to a rapid reduction of the Federal debt, particularly
that held by banks.
4
Budget surpluses, enabling debt reduction during the
past two years, have been aimed at reducing inflationary pres
sures. I stated when I assumed office as Secretary of the
Treasury in June, 1946, that it was the responsibility of the
Government to reduce its expenditures in every possible way,
and to achieve a balanced budget, or better. Both President
Truman and I have continued to emphasize the imperative
necessity of reducing our debt burden during this period of
great prosperity.
It was most gratifying to be able to announce at the end
of the fiscal year just passed that we had completed two
years of budget surpluses. In the 1948 fiscal year, we
achieved by far the largest surplus in our history $8,419,000,000. But, unfortunately, the record of these two
years of surpluses will not be repeated during the presentfiscal year. And that is due'to the ill-timed and ill-con
ceived tax bill passed in the last Congress.
In carrying out the Treasury’s debt management policy,
the debt held by the commercial banking system has been re
duced by $30 billion since February 1946, or $3-'^7^"billion
more than the reduction in the total debt. There has been
an actual increase during this period of $3->
£?^£''billion in
Federal debt held by nonbank investors. This increase re
flects principally*the Increased-amount of securities held
by Government trust funds and the vigorous sales campaigns
for savings bonds conducted during the period.
As part of the Treasury program to reduce inflationary
pressures, credit has been tightened by a gradual increase
in Interest rates on short-term Treasury securities, and by
a sharp reduction In premiums on long-term issues. Indicat
ing the effectiveness of these actions, it is encouraging to
note that the. money supply has lately declined. At the end
of July, the currency outside of banks plus -adjusted demand
deposits was $4.6 billion less than the all-time peak of
$113.6 billion reached at the end of last December. This
was partly seasonal, but last year the reduction during the
same period was only $1.0 billion.
But, perhaps the most significant factor In the business
structure of the nation is the fact that both individuals and
corporations have built up assets of sufficient volume to
maintain a highly liquid financial position. The liquid
assets of1 individuals are now estimated at approximately $200
billion, of which more than $140 billion has been accumulated
since 1 9 3 9 «' Net working capital of corporations has increased
by $38 billion since 1 9 3 9 * reaching a recent total of $62
billion. Corporate holdings of cash and Government securities
have increased $22 billion since 1939.
- 5 And^ the strong financial position in agriculture is'
veil illustrated by the situation in farm real estate.
While prices of farms have advanced even more rapidly in
recent years than during the comparable period of World War I,
the rise has not been financed by borrowing. On the con
trary, it has been accompanied by a decrease of about 30 per
cent in farm mortgage debt, in contrast to an increase of
l60 percent during the speculative land boom of World War I.
The total farm mortgage debt of $4-3 A' billion at the end
of 19 ^ 7 was less than 8 percent of the value of all farm
lands.and buildings. In this, and in other respects,-agri
culture stands today on a much firmer foundation than it did
in the twenties.
In any appraisal of the strength of our economy now as
contrasted with the situation in the twenties, .full regard
must be given to the safeguards and supports which have been
provided since the early 1930's by a government acting with
vision and dispatch in response to a nation's awakened sense
of social responsibility. Today, under the provisions of
Social Security legislation, we have Federally-sponsored
State.unemployment insurance which would aid materially ,in
maintaining purchasing power should there ever develop a
serious business setback.
Today, the position of agriculture is bolstered not only
by the strong financial condition of farmers, but also by
measures to insure proper returns to the farmers for their
farm products. The Administration's program for protecting
the rights of labor, which has broadened the use of collec
tive bargaining 'in wage negotiations, has served to strengthen
and stabilize the entire wage structure. Under the protective
operations of the Securities and Exchange Commission, inves
tors in securities are enabled ,to obtain full and accurate
information concerning the registered issues. Restrictions
on the use of .credit in stock market trading, administered
by the Federal Reserve Board, have done much to prevent
excessive speculation in that field. The Federal Deposit
Insurance legislation projects the savings of depositors-,
and the stability of the banking structure is thereby im
mensely improved.
When all of these factors are summarized, they indicate
without question that the national economy today Is much
healthier and stronger than it‘was in the twenties. We must
concentrate on those features of our present situation that
have enabled us to maintain a basically sound high-level
economy, and we must be alert for any developing evidence of
unbalance that might cause an unnecessary breakdown.
-
6
-
The present picture is a reassuring one; hut there are
a few unhealthy symptoms in addition to the inflationary
pressures which I have mentioned. One is the extent of'real
estate speculation and another is the rapid rise in consumer
credit, now at record levels. This type of credit expansion
not only contributes to inflationary pressure now, hut will
he strongly deflationary later. The harking iraternity has
made a valuable and significant contribution toward stabil
izing our economy through the voluntary program for credit
control which the American Bankers1 Association has so aggres
sively sponsored. A more careful screening of loan applica
tions brought visible results during the first half of this
year in holding down bank credit. This action has contrib
uted substantially toward preserving a well-balanced economy.
Since the Treasury, in this fiscal year, will no longer
be able to contribute substantially to inflation control by
an excess of receipts over expenditures, an even greater
responsibility will be placed on the men who determine loan
policies in the. nation's 15,000 banks, A liberal uncoordin
ated credit policy contributed to the short-lived speculative
boom after the First World War, the liquidation of which
brought heavy losses to lenders as well as borrowers. Wehave top much at stake to risk a repetition of that exper
ience. All types of loans should be kept on a sound, basis.
Speculative buying should be held to a proper minimum. And
consumer credit should not be allowed to become over-extended.
A greater and even more prosperous future faces this nation
if we are wise.
The Nation is faced with a heavy unfilled demand for
houses, for automobiles, farm machinery, freight cars, steel,
electrical capacity, new schools and highways. ^Our popula
tion is growing, and a still greater expansion in these
facilities may well be called for in the future. Electronic
devices, plastics, and other new inventions are attracting
an increasing public demand. We have only begun to tap the
billions of savings built up during the war years. All of
these facts testify to the powerful reserve strength in our
national economy.
For with our eyes ever toward the future -- with^alert
ness to detect and forestall any throat to our economic
stability -- we have every reason to hope for continued pros
perity in the years to Qome, and for .an even greater and
better America.
-oOo-
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1
TREASUR
In fo rm a tio n S e r
RELEASE, MORNING NEWSPAE
Monday, September 20, IS
Secretary of the Ti
Federal Reserve Banks, c
Series G-19U9, open on a
tificates of Ind.eioted.nefi>-> <-/jmu uuc amuuuu w±
^7u u j w u j vj.
Series K-19U8, in the amount of $l,ij67,076,000, or Treasury Notes of Series
B-I9I4.8, in the amount of $u,092,0£0,000, all maturing October 1, 19U8. Cash sub
scriptions will not be deceived.
The certificates now offered will be dated October 1, 19U8, and will bear
interest from that date at the- rate of one and one-quarter percent per annum,
payable with the principal at maturity on October 1, 19U9 • They will be issued
in bearer form only, in denomination^ of $1,000, $5>,000, $10,000, $100,000 and
$1,000 ,000 .
Pursuant to the provisions of the Public Debt Act of 19Ul, ns amended, in
terest 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 Federal Reserve Banks and Branches, and
at the Treasury Department, "Washington, and should be accompanied by a like face
amount of the maturing * s e c u r i t i e s S u b j e c t to the usual reservations, all sub
scriptions will be allotted in full.
The subscription books will close for the receipt of all subscriptions at the
close of business Wednesday, September 22.
Subscriptions addressed to a Federal Reserve Bank or Branch or to the Treasury
Department, and placed in the mail before midnight September 22, will be considered
as having been entered before the close of the subscription books.
The text, of the official circular follows:
RELEASE, MORNING NEWSPAPERS,
Monday, September 20, 19U8.
‘
No. S-862
Secretary of the Treasury Snyder today announced the offering, through the
Federal Reserve Banks, of l-l/a percent Treasury Certificates of Indebtedness of
S e rie s G-19U9, open on an exchange basis, par for par, to holders of Treasury Cer
t i f i c a t e s o f Indebtedness of Series J-19U8, in the amount *f $1,353,966,000, or
S e rie s K-19u8, in the amount of $1,U6?,076,G00, or Treasury Notes of Series
B—1 9 I48, in the amount of $4 ,092,050,000, all maturing October 1, 19U8. Cash sub
s c r ip tio n s will not be deceived.
The certificates now offered will be dated October 1, 19U8, and will bear
interest from that date at the- rate of one and one-quarter percent per annum,
payable with the principal at maturity on October 1, 19b9. They Trill be issued
in bearer form only, in denominations of $1,000, $5,000, $10,000, $100,000 and
11,000 ,000 ,
Pursuant to the provisions of the Public Debt Act of 19Ul, as amended, in
terest 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 Federal Reserve Banks and Branches, and
at the Treasury Department, Washington, and should be accompanied by a like face
amount of the maturing 'securities,. Subject to the usual reservations, all sub
scriptions will be allotted in full.
The subscription books will close for the receipt of all subscriptions at the
close of business Wednesday, September 22.
Subscriptions addressed to a Federal Reserve Bank or Branch or to the Treasury
Department, and placed in the mail before midnight September 22, will be considered
as having been entered before the close of the subscription books.
The text, of the official circular follows:
UNITED STATES OF AMERICA
l-l/k
PERCENT TREASURY CERTIFICATES OF INDEBTEDNESS OF SERIES G-19U9
Dated and bearing interest from October 1, 19U8
Due October 1,
19h9
TREASURY DEPARTMENT,
Office- of the Secretary,
Washington, September 20, 19U8.
19U8
Department Circular No. 835
Fiscal Service
Bureau of the Public Debt
I.. OFFERING OF CERTIFICATES
1. The Secretary of the Treasury, pursuant to the authority of the Second
Liberty Bond Act, as amended, invites subscriptions, at par, from the people of
the United States, for certificates of indebtedness of the United States, desig
nated l-l/l; percent Treasury Certificates of Indebtedness of Series G-l 9h9, in
exchange for Treasury Certificates of Indebtedness of Series J-19U8 or Series
K-I9I48, or Treasury Notes of Series B-19U8, all maturing October 1, 19U8.
II.
DESCRIPTION OF CERTIFICATES
1. The certificates will be dated October 1, 19U8, and will bear interest
from that date at the rate of 1-l/U percent per annum, payable with the principal
at maturity on October 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 or
supplementary thereto. The certificates shall be subject to estate, inheritance,
gift or other excise taxes, whether Federal or State, but shall De 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 tax
ing authority.
3. The certificates will be acceptable to secure deposits of public moneys.
They will not be acceptable in payment of taxes.
U. Bearer certificates will be issued in denominations of $1,000, $5,000,
|10,000, $100,000 and $1,000,000. The certificates vail not be issued in regis
tered form.
5» ' The certificates vail be subject to the general regulations of tne
Treasury Department, now or hereafter prescribed, governing United States cer
tificates.
III.
SUBSCRIPTION AND ALLOTMENT
1.- Subscriptions will be received at the Federal Reserve Banks and Branches
and at the Treasury Department, Washington. Banking institutions generally may
-
2
-
submit subscriptions for account of customers, but only the Federal Reserve Banks
the Treasury Department are authorized to act'as-official agencies.
and
2,. The Secretary of the Treasury reserves the right to reject any subscrip
tion, in whole or in part, to allot less than the amount of certificates applied
for, and to close the books ..as to any or all subscriptions at any time without
notice} and any action he may take* in these respects shall be final. Subject to
these reservations, 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 heheunder must be made on or
before October 1, 191+8, or on later allotment, and may be made only in Treasury
Certificates of Indebtedness of Series J-19U3 or Series K-19U8, or Treasury
Notes of Series B-T914-8, all maturing October 1, 191+8, which will be accepted at
par, and should accompany the subscription. The full amount of interest due on
the securities surrendered m i l be paid to the subscriber following acceptance
of the securities.
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 Barnes 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 offer
ing, which will be communicated promptly to the Federal Reserve Banks,
JOHN W. SNYDER,
Secretary of the Treasury.
because it puts the brakes on inflation and brings down living
costs,
I
have enjoyed talking to you about these problems which we,
as citizens, hold in common.
In asking for your cooperation and
assistance in our struggle to cut down inflationary pressures, I
know I am appealing to a sympathetic and responsive organization
whose members have never turned away when there was a legitimate
public service to be performed.
Ho other group has a greater
understanding of Government and its financial problems.
we in the Treasury can count on you.
I know
to the cooperation and activity of business exécutives throughout
the country*
Hundreds of companies have reestablished the plan,
or have revitalized it| and important increases in participation
are reported everywhere*
We hope in your capacity as financial
advisers and consultants to business, that you will look upon
the plan from the viewpoint of its economic and financial benefits
to the employer, the employee, and the country as a whole, and
disregard the small cost involved in its operation*
As you know,
each dollar of debt which is transferred from the banks to the
general public cuts down the money supply and relieves the
pressure upon prices*
That is why emphasis on that phase of
our anti«* inflat ion program is more important now than ever before*
your influence with your clients to see that the payroll savings
plan is put into effect in those companies which do not now have
it and is maintained and strengthened in those companies where
it is now in operation, to the end that it be made available to
every worker in the country who wants to participate in it*
That *s good for management because it benefits from the effects
of a more stable economy.
Its good for the worker who saves a
portion of his earnings against the day when they are really
needed*
And i t ’s good
v _ ji
and me and the country as a whole
■ ■ ■
You can help greatly in our fight against inflation by using
from trust funds and the receipts from the sales of
savings bonds.
It is, therefore, highly Important that
a maximum effort should be devoted to the sale of savings
bonds to nonbank holders.
The heart of the Savings Bonds Program, as you know,
is the payroll savings plan.
It is in firms like those with
which you come in daily contact that the payroll savings
plan can be the most effective*
During the war, business
and industrial firms throughout the country cooperated
whole-heartedly in promoting participation in this plan*
At its peak, about 27 million people were purchasing bonds
through payroll deductions*
After the war, there was a
substantial decline in the number of participants in the
payroll^ savings plan which was, of course, to be expected.
No need in peacetime can equal the need of actual war, nor
can any peacetime appeal be as effective as the patriotic
one which was made during the war, when most purchasers of
bonds had sons, husbands, fathers and loved ones on the
fighting fronts.
The low point of participation in the payroll savings
plan was reached about a year ago* and the trend has been
upward since*
This upward trend has
% m
due, in large part
• I l
ls placed upon the banks to reintensify their efforts to
reduce nonessential lending*
When one bastion is put out
of action, the remaining bastion must double its fire*
The bankers of the country, I am happy to say, are accepting
the challenge in this spirit*
In your capacity as professional accountants you can be
very helpful in this connection.
By counseling your clients
not to borrow money for purposes which do not increase pro
duction, you can Join the ranks of those actively engaged
against the forces of inflation*
You know better than any
other group in the community the dangers of over-extension —
over-extension of credit, over-extension of inventories, and
over-extension of plant and equipment.
By carrying to your
clients a message both of optimism and conservatism, you can
make your influence felt in the battle against high prices.
Both are needed, for it is only by maintaining a balance between
the two that we can avoid the boom-andbust cycle characteristic
of so much of our past history*
So much for fiscal policy.
Now I want to talk briefly
about another matter on which the Treasury would like to have
your help and cooperation.
As I have indicated, for the full
fiscal year 1949, we will not be able to effect a net reduc
tion in the debt.
We will, however, be able to continue
in some degree our anti-inflationary policy of cutting
down the amount of bank-held debt.
But the only funds
available for this purpose will be the cash receipts
■ «► 1 0 •
Is uslag the® to the greatest possible extent*
For example,
the Treasury* during the past year* has increased substan
tially the interest rates which it pays on short-term
Government securities*
This, of course, results in higher
interest rates on private borrowing and, so, has & r e s t m n ing effect on such borrowing*
The Federal Reserve System
has followed with increased rediscount rates; and has recently
announced increases in reserve requirements against demand
and time deposits of all member banks, pursuant to the new
authority granted by Congress last August*
In addition, the Government has asked private bankers
to reexamine their lending policies, with a view to cutting
down lending which does not result in an increase in the
production of goods and services.
The American Bankers
Association carried out a special program to cooperate with
the Government in this respect; and I should like to take
this occasion to repeat the thanks which Secretary Snyder
has already expressed for the Association’s cooperation*
The task is far from complete, however; and, as
Secretary Snyder and President Dodge of the American Bankers
Association each commented in an exchange of correspondence
last luly, now that the Federal Government is no longer able
to operate at a surplus, a heavy and added responsibility
Ü
• 9 *
lorn will note that I say operating deficit and
operating surplus.
In seeking for a Government surplus
we must be sure that we have a real surplus f and not one
that appears only on paper.
We should be careful that we
do not get mixed up by our
I don't have to
tell you accountants that the Government should keep its
records so that a CPA could certify to them without putting
embarrassing qualifications in his certificate.
What I
Congress which directed that 3 billion dollars spent during
this fiscal year for the Economic Cooperation Program be
treated for the purpose of reporting Government expenditures
as if it had been spent in the preceding fiscal year.
keeping operation, directed by the Congress, does not change
the timing of the impact on the economy of a single dollar
of Government receipts or expenditures.
This transaction
is irrelevant as far as the problem of inflation is concerned.
Xou accountants are in a better position to realise that
than any other group in the country.
The Federal Government has, of course, other -f but
less effective —
anti-inflationary fiscal instruments, and
B «*
While the total debt is now down 27 billion
dollars from its peak, it is significant to point out
that the debt held by the commercial banking system is 30
billion dollars less than it was at the peak two and one*
half years ago*
And the volume of securities owned by
individuals and other nonbank investors is larger than it
was in February 1946*
This transfer of Government securi
ties from banks to nonbank investors was a direct consequence
of the public debt management policies of the Treasury.
These policies have contributed to the fight against infla
tion, and will he continued as long as they are appropriate*
Unfortunately, however, the Federal Government no
longer has a budget surplus; with the battle against in
flation not yet won we have lost our most powerful fiscal
weapon*
As a result of the combined impact of increased
expenditures for foreign aid and National defense, brought
about by the tense international situation, and decreased
tax revenues, brought about by an ill-timed tax reduction,
the Federal Government will this year have an operating deficit
estimated by the President at approximately 1-1/2 billion
dollars, as contrasted with an operating surplus of nearly
8-1/2 billion dollars last year*
% y. ^
m
7
m
Consequently, a debt pay-off program was inaugurated
on March 1, 1946.
This program, carried on over the last
2-1/3 years, has brought the debt down to the present leyel
of a little under 253 billion dollars.
From March 1 to the close of 1946, the debt was reduced
20 billion dollars through the application of cash balance
funds*
By this time, the cash left over from the Victory
Loan h a d been expended, so that subsequent debt reduction
had to come from a budget surplus*
During 1947 and the
first four months of 1948, by the use of the budget surplus,
we were able to cut the debt by over 7 billion dollars.
Tworthirds of this reduction was concentrated in the first
four months of 1948.
fhe money for this concentrated program in the early
months of the current calendar year came from a budget sur
plus of approximately 6 billion dollars accumulated in the
first quarter of the year,
fhe rest of the surplus was
used to build up the cash balance —
partially to meet ex
penditures in the latter part of the year when current ex
penditures exceed current receipts*
Some of the remainder,
however, is still available for debt reduction —
for example
a bond maturity of 451 million dollars was paid off only
last week*
i
seriously out of line.
It could be used for this purpose
only at the risk of a drastic deflation in the entire
economy*
In the main, fiscal policy can deal only with
general excesses or deficiencies of purchasing power*
Before I began to talk about the way we hare tried to
direct our policies toward combating inflationary pressures,
I wanted to make that clear*
In the field of fiscal policy, & surplus of Government
receipts over expenditures ** which can be used for debt
retirement —
is: the most effective instrument.
The fact that
the Federal Government has been able to operate at a substan
tial surplus during the past two years has been a factor of
significant anti»inflationary importance.
As you know, the public debt reached a peak of 280
billion dollars in February 1946, just after the close of
the Victory Loan.
At the same time, the Treasury cash
balance, swollen by the proceeds of the Loan, also was at
its record level*
Because Federal expenditures were then
being cut more rapidly than had at first seemed possible,
we no longer needed a Treasury cash balance as large as had
been required to meet the contingencies of the preceding
war years.
postwar period*
Wholesale prices have risen almost without
Interruption since shortly after YJ-Day.
They rose 12 per*
cent in the 12-month period ending last July -• the latest
month for which figures are available.
Consumer prices have
followed a similar course $ the rise in the same 12-month
period amounting to 10 percent, according to the Bureau of
Labor Statistics Consumer Price Index.
Both of these
indexes reached all-time highs this summer.
It was to deal with this serious problem of inflationary
pressures that President Truman called Congress into special
session last November and again last July*
He laid before
Congress a comprehensive anti-inflation program, which Congress
t
chose not to enact*
I will not go into the details of that
program or why President Truman considered that it was essen
tial to have all of it*
I merely want to point out that the
program contained specific measures for remedying specific
instances of excessively high prices, which cannot be reached
by the general anti-inflationary ?/eapons at the disposal of
the Administration today.
Fiscal policy can be employed against inflation, for
example, by cutting down the total purchasing power of the
economy*
It is not, however* a suitable weapon for bringing
under control the price of any one specific Item which is
¿ÿ (û 3
* 4 wko are changing from one job to another or are looking
for new and better job opportunities*
According to the figures compiled by the Federal
Reserve Board, industrial production early this year
reached a peacetime record of 194 percent of the 1935*39
average —
far above any level reached in the prewar years*
This prosperity is distributed broadly throughout the
economy.
All sectors share in it.
Wages and salaries, farm
Income, and business profits have all reached new peak levels*
The standard of living of the American people, measured
in terms of goods and services, is higher than ever before.
This record prosperity is in sharp contrast to the
situation which existed at a similar period after the end of
World War I.
Many of you will recall that by the end of
1921 this country had already experienced, and was just be
ginning to recover from, a severe postwar recession*
Early
in 1921, industrial production had reached a level one-third
below the postwar peak*
Wholesale prices —
the Bureau of Labor Statistics index —
as measured by
had dropped nearly
45 percent from their 1920 peak.
Our present prosperity is not, however, without a very
serious danger*
This danger is the persistent upward
pressure on prices which has existed throughout j§Sat of the
«■»§«*
la the Treasury we work constantly at the problems of
public debt management and we try to mold our debtmanagement objectives to the needs of the country as the
fiscal and economic conditions change from day to day.
Each
decision must be weighed carefully in the light of its
swift and chain-like ramifications.
Before telling you how we are at tempt is^/to shape —
and have shaped —
our fiscal policy to the needs of the
economy, I should like first to review briefly our economic
situation.
The United States is enjoying a prosperity never before
equaled in peacetime.
It is a prosperity so great in its
proportions that hardly anyone would have dared forecast it
three years ago*
The reconversion slump, which so many
persons then were so certain we could not avoid, simply has
not materialised.
In July, employment reached an all-time record of
nearly 62 million jobs.
Most of you will recall that only
three years ago a goal of 60 million jobs for the peacetime
economy was considered over-optimistic*
Unemployment has
fluctuated between 1-3/4 and 2-3/4 million since YJ-Day.
This represents pretty close to maximum employment in a
dynamic economy such as ours, where you always find workers
- 2 -
On© of the principal responsibilities of the Treasury
is the management of the public debt.
The very size of the
public debt is in itself a real challenge —
dollars is a tremendous sum.
253 billion
While you should not be over
whelmed by the magnitude of the public debt# nonetheless
you cannot prudently underestimate its far-reaching effect
upon the national economy.
The public debt today makes up about 55 percent of all
of the debt in the United States#
Federal obligations are
the principal investments of millions of individuals, and of
thousands of banks, other financial institutions and corpora
tions.
Individuals directly own 67 billion dollars of Federal
securities.
In addition, they have an indirect stake in the
larger portion of the public debt owned by banks, insurance
companies and other financial institutions which hold their
savings and deposits and underwrite their policies.
Federal
securities constitute about 55 percent of the earning assets
of commercial banks, about 40 percent of the assets of in
surance companies, and about 60 percent of the assets of
mutual savings banks.
The Treasury, therefore, has a respon
sibility for what happens to its obligations such as no
financial organisation could have.
private
f & 3
Duping the recent war, and particularly in the
immediate post-war period in connection with the settlement
of cancelled war contracts, I had an opportunity to work
closely with many of the members of the American Institute
of Accountants, some of whom are present today*
lour
President George D* Bailey, your Vice-President J. Harold
Stewart, Paul Grady, George 0* May, John McEachern and
Coleman Andrews, to mention only a few whose names come
most readily to mind, all performed patriotic yeoman serv
ices on behalf of the Government in connection with the
swift solution of some of the most complicated and baffling
problems ever to confound accountants and lawyers*
Every
lawyer who was privileged to work with them was impressed
with their competence, skill and cooperation*
And that’s &
lot for a lawyer to say about an accountant.
The Government
owes them much for their sacrifice and help*
I was delighted when George Bailey and Hal Stewart
invited me to come here today, not only because it affords
me an opportunity to renew acquaintances, but also because
it provides an occasion to tell you about some of our
problems in the Treasury and bespeak your help in solving
them*
TREA SU RY DEPARTMENT
WASHING
mammm
m^m
TREASURY- DEPARTMENT
Washington
The following address by Under Secretary Edward H*
Foley, Jr*, before the American Institute of Accountants,
Grand Ball Room, Palmer House, Chicago, Illinois, is
scheduled for delivery-at 11:15 A» M», C*D*T*, Thursday
September 23, 1943» and is for release at that time*
During the recent war, and particularly in the immediate
post-war period in connection with the settlement of cancelled war
contracts, I had an opportunity to work closely with many of the
members of the American Institute of Accountants, some of whom are
present today* Your President George D„ Bailey, your VicePresident J* Harold Stewart, Paul Grady, George 0. May, John
McEachern and Coleman Andrews, to mention only a few Yihose names
come most readily to mind, all performed patriotic yeoman services
on' behalf of the Government in connection with the swift solution
of some of the most complicated and baffling problems ever to
confound accountants and lawyers® Every lawyer who was privileged
to work with them was impressed with their competence, skill and
cooperation* And that’s a lot for a lawyer to say about an ac
countant® The Government owes them much for their sacrifices and
help»
I was delighted when George Bailey and Hal Stewart invited me
to come here, today, not only because it affords me an opportunity
to renew acquaintances, but also because it provides an occasion
to-tell you about some of our problems in the Treasury and bespeak
your help in solving them*
One of the principal responsibilities of the Treasury is the
management of the public debt* The very size of the public debt
is in itself a real challenge — 253 billion dollars is a tremendous
sum* .VJhile you should not be over-whelmed by the magnitude of the
public debt, nonetheless you cannot prudently underestimate its
far-reaching effect upon the national economy*
The public debt today makes up about 55 percent of all of the
debt in the United States* Federal obligations are the principal
investments of millions of individuals, and of thousands of banks,
other financial institutions and corporations* Individuals directly
own 67 billion dollars of Federal securities* In addition, they
have an indirect stake in the larger portion of the public debt
owned by banks, insurance companies and other financial institutions
which hold their savings and deposits and underwrite their policies*
Federal securities constitute about 55 percent of the earning assets
of commercial banks, about AO percent of the assets of insurance
companies, and'about 60 percent of the. assets of mutual savings
banks. The Treasury, therefore, has a responsibility for what
happens to its obligations such as no private financial organization
could have»
S-863
2 **
In the Treasury we work constantly at the problems of public
debt management and we try to mold our debt-management objectives
to the needs of the country as the fiscal and economic conditions
change from day to day® Each decision must be weighed carefully in
the light of its.swift and chain-like ramifications«
Before telling you how we are attempting to shape — and have
shaped — our fiscal policy to the needs of the economy, I Should
like first to review briefly our economic situation#
The United States is enjoying a prosperity never before equaled
in peacetime. It is a prosperity so great in its proportions that
hardly anyone would have dared forecast it three years ago# The
reconversion slump, which so many persons then were so certain we
could not avoid, simply has not materialized#
In July, employment reached an all-time record of nearly
62 million jobs# Most of you will recall that only three years ago
a goal of 60 million jobs for the peacetime economy was considered
over-optimistic. Unemployment has fluctuated between 1— 3/4 and
2-3/4 million since VJ-Day# This represents pretty close to
maximum employment in a dynamic economy such as curs, where you
always find workers who are changing from one job to another or
are looking for new and better job opportunities#
According to the figures compiled by the Federal Reserve
Board, industrial production early this year reached a peacetime
record of 194 percent of the 1935—39 average — far above any level
reached in the prewar years#
This prosperity is distributed broadly throughout the economy#
All suctor.s share in it* Wages and salaries, farm income, and
business profits have all reached new peak levels#
The standard of living of the American people, measured in
terms of goods and services, is higher than ever before#
T h is r e c o r d p r o s p e r i t y i s in sh a rp c o n t r a s t to th e s i t u a t i o n
Ytfhich e x i s t e d a t a s i m i l a r p e rio d a f t e r th e end o f W orld War I©
Many of you will recall that by the end of 1921 this country had
already experienced, and was just beginning to recover from a
severe postwar recession# Early in 1921, industrial production
had reached a level one-third below the postwar peak# Wholesale
prices — as measured by the Bureau of Labor Statistics index
had dropped nearly 45 percent from their 1920 peak#
Our present prosperity is not, however, without a very serious
danger# This danger is the persistent upward pressure on prices
which has existed throughout most of the postwar period# Wholesale
prices have risen almost without interruption since shortly after
VJcJDay® They rose 12 percent in the 12-month period ending last
July i— the latest month for which figures are available* Consumer
-*• 3 —
prices have followed a similar course; the rise in the same 12-month
period amounting to 10 percent, according to the Bureau of Labor
Statistics Consumer Price Index* Both of these indexes reached alltime highs this summer*
It was to deal with this serious problem of inflationary
pressures that President Truman called Congress into special session
last November and again last July. He laid before Congress a com
prehensive anti-inflation program, which Congress chose not to enact«
I will not go into the details of that program or why President
Truman considered that it was essential to have all of it« I merely
want to point out that the program contained specific measures for
remedying specific instances of excessively high prices, which cannot
be reached by the general anti-inflationary weapons at the disposal
of the Administration today«
Fiscal policy can be employed against inflation, for example,
by cutting down the total purchasing power of the economy« It is
not, however, a suitable weapon for bringing under control the price
of any one specific item which is seriously out of line* It could
be used for this purpose only at the risk of a drastic deflation in
the entire economy* In the main, fiscal policy can deal only with
general excesses or. deficiencies of purchasing power*
Before I began to talk about the way we have tried to direct
our policies toward combating inflationary pressures, I viranted to
make that clear*
In the field of fiscal policy, a surplus of Government receipts
over expenditures — which can be used for debt retirement — is the
most effective instrument. The fact that the Federal Government has
been able to operate at a substantial surplus during the past two
years has been a factor of significant anti—inflationary importance.
As you know, the public aeb't reached a peak of 280 billion
dollars in February 194-6, just after the close of the Victory Loan*
At the same time, the Treasury cash balance, swollen by the proceeds
of the Loan, also Was at its record level* Because Federal ex
penditures were then being cut more rapidly than had at first seemed
possible, we no longer needed a Treasury cash balance as large as
had been required to meet the contingencies of the preceding war
years*
Consequently, a debt pay-off program was inaugurated on March 1,
I9469 This program, carried on over the last 2-1/2 years, has
brought the debt down to the present level of a little under 253
billion dollars.
From March 1 to the close of 194-6, the debt was reduced 20
billion dollars through the application of cash balance funds* By
this time, the cash left over from the Victory Loan had been expended,
so that subsequent debt reduction had to come from a budget surplus «
During 1947 and the first four months of I94.8, by the use of the
A
4
budget surplus, we were able to cut the debt by over 7 billion
dollars* Two--'thirds of this reduction was concentrated in the first
four months of 19 480
The money for this concentrated program in the early months of
the current calendar year came from a budget surplus of approximately
6 billion dollars accumulated in the first quarter of the year* The
rest of the surplus was used to build up the cash balance — par
tially t© meet expenditures in the latter part of the year when
current expenditures exceed current receipts* Some of the remainde r,
however, is still available for debt reduction — for example, a
bond maturity of 451 million dollars was paid off only last week*
Ihile tne total debt is now down 27 billion dollars from its
peak, it is significant to point out that the debt held by the
commercial banking system is 30 billion dollars less than it was at
the peak two and one—half years ago* And the volume of securities
own..d by individuals and other nonbank investors is larger than it
was in February 194&e This transfer of Government securities from
banks to nonbank investors was a direct consequence of the public
debt management policies of the Treasury* These policies have corvtributed to the fight against inflation, and will be continued as
long as they are appropriate*
Unfortunately, however, the Federal Government no longer has a
budget surplus; with the battle a gainst inflation not yet won we
have lost our most poY/erful fiscal weapon* As a result ,of the com**
bined impact of increased expenditures for foreign aid and National
defense, brought about by the tense international situation, and
decreased tax revenues, brought about by an ill-timed tax reduction,
the^Federal Government will this year have an operating deficit
estimated by the President at approximately 1—1/2 billion dollars,
as contrasted with an operating surplus of nearly 8-1/2 billion
dollars last year*
You will note that I say operating deficit and operating
surplus* In seeking for a Government surplus we must be sure that
we have a real surplus, and not one that appears only on paper*
Te should be careful that we do not get mixed up by our bookkeeping*
1 don t have to tell you accountants that the Government should
ltS fecords s°^that* a CPA could certify to them without putting
embarrassing qualifications in his certificate* What I have in
mind, of course, is the law passed by the last Congress which
bir 4 -?n dollars spent during this fiscal year for
e Economic Cooperation Program be treated for the purpose of
9?7er?nent expenditures as if it had been spent in the
L
“ g fls.
0.
al year° Keeping the books that way does not make it
^ • ldceepl5 gl^
ati0ni direoted by the Congress, does not
C.^nge the timing of the impact of the eaonomy of a single dollar
?fi?>Ver m e n i: rece:LPts or expenditures. This transaction is irrelevant as far as the problem of inflation is concerned. You
^ocountants are in a better position to realize that than any other
feroup m the country*
- 5 -
The Federal Government has, of course, other — but less
effective — - anti-inflationary fiscal instruments, and iB using
them to the greatest possible extent# For example, the Treasury,
during the past year, has increased substantially the interest rates
which it pays on short-term Government securities. This, of course,
results in higher interest rates on private borrowing and, so, has
a restraining effect on such borrowing# The Federal Reserve System
has followed with increased rediscount rates; and has recently
announced increases in reserve requirements, against demand and time
deposits of all member banks, pursuant to the new authority granted
by Congress last August#
In addition, the Government has asked private bankers to
reexamine their lending policies, with a view to cutting down lending
which does not result in an increase in the production of goods and
services#. The American Bankers Association carried out a special
program to cooperate with the Government in this respect; and I
should like to t ake this occasion to repeat the thanks which Secretary
Snyder has already expressed for the Association1s cooperation#
The task is far from complete, however; and, as Secretary
Snyder and President Dodge of the American Bankers Association each
commented in an exchange of correspondence last July, now that the
Federal Government is no longer able to operate at a surplus, a
heavy and added responsibility is placed upon the banks to re—
intensify their efforts to reduce nonessential lending# When one
bastion is put out of action, the remaining bastion must double its
fire# The bankers of the country, I am happy to say, are accepting
the challenge in this spirit#
In your capacity as professional accountants you can be very
helpful in this connection# By counseling your clients not to
borrow money for purposes which do not increase production, you can
join the ranks of those actively engaged against the forces of
inflation. You know better than any other group in the community
the dangers of over-extension —
over-extension of credit, overextension of inventories, and over-extension of plant and equipment#
By carrying to your clients a message both of optimism and con
servatism, you can make your influence felt in the battle against
high-prices. Both are needed, for it is only by maintaining a
balance between the two that we can avoid the boom—and—bust cycle
characteristic of so much of our past history.
So much for fiscal policy* Now I want to talk briefly about
another matter on which the Treasury would like to have your help
and cooperation. As I indicated, for the full fiscal year 1949* we
will not be able to effect a net reduction in the debt#' We will,
however, be able to continue in sane degree our anti-inflationary
policy of cutting down the amount of bank-held debt# But the only
funds available for this purpose will be the cash receipts from
trust funds and the receipts from the sales of savings bonds# It
is, therefore, highly important that a maximum effort should be
devoted to the sale of* savings bonds to nonbank holders#
-
6
-
The heart of the Savings Bonds Program, as you know, is the payroll
savings plan* It is in firms like those with which you come in daily
contact that the payroll savings plan can be the most effective* During
the war, business and industrial firms throughout the country cooperated
whole-heartedly in promoting participation in this plan* At its peak,
about 27 million psople were purchasing bonds through payroll deductions*
After the war, there was a substantial decline in the number of partic
ipants in the payroll savings plan which was, of course, to be expected*
No need in peacetime can equal the need of actual war, nor can any peace
time appeal be as effective as the patriotic one which was made during
the war, when most purchasers of bonds had sons, husbands, fathers and
loved ones on the fighting fronts.
The low point of participation in the payroll savings plan was
reached about a year ago, and the trend has been upward since* This
upward trend has been due, in large part, to the cooperation and activity
of business executives throughout the country. Hundreds of companies
have reestablished the plan, or have revitalized it; and important
increases in participation are reported everywhere* Vie hope in your
capacity as financial advisers and consultants to business, that you will
look upon the plan from the viewpoint of its economic and financial
benefits to the employer, the employee, and the country as a whole, and
disregard the small cost involved in its operation*. As you know, each
dollar of debt which is transferred from the banks to the general public
cuts down the money supply and relieves the pressure upon prices* That
is why emphasis on that phase of our anti-inflation program is more
important now than ever before*
You can help greatly in our fight against inflation by using your
influence with your clients to see that the payroll savings plan is put
into effect in those companies which do not now have it and is maintained
and strengthened in those companies where it is now in operation, to the
end that it be made available to every worker in the country who wants
to participate in it* That*s good for management because it benefits
from the effects of a more stable economy* It^s good for the worker
who saves a portion of his earnings against the day when they are really
needed* And it’s good for you and me and the country as a whole
because it puts the brakes on inflation and brings down living costs*
I have enjoyed talking to you about these problems which we, as
citizens, hold in common. In asking for your cooperation and assistance
in our struggle to cut down inflationary pressures, I know I am appealing
to a sympathetic and responsive organization whose members have never
turned away when there was a legitimate public service to be performed*
No other group has a greater understanding of Government and its
financial problems. I know' we in the Treasury can count on you*.
0O0
RXu a s e ,
rn m x m h a m p e r s ,
September El, 1948*
fh% Secretary of the treasury eaneaneed loot evening that the tenders for
♦1,000,000,000, or thereabouts, of
91~dajr Treasury bills to ho dated September
ta4
to aatur© December 23, 1948, which wore offered September If, 1948, wore opened at th
federal Heoerre Banka on September £0,
fke detail« of this leene are as follows:
total applied for - 11,39?,98«,000
■R»t*l toeepted
. 1,0 0 0 , T9«,000
A»enage pria*
(Includes »80,880,000 entered on • aoncompetitive basis and accepted in fell at
the average price shown below)
- 99.98«/ ajulrnlcat rat* of diaconat sjip»x, 1.098JS par as-n
Benge of accepted competitive bids:
High
- 99*730 Equivalent rate of discount eppnox. 1.068$ per «naca
* 99*712
•
*
»
*9
«
1.100$ *
*»
( 6 percent of the amount bid for at the lew price was accepted)
federal Reserve
Botai
B is t r ie t
Applied for
Boston
Hew fork
♦
Philadelphia
C levelan d
Richmond
Atlanta
Chicago
It* Gottis
Minneapolis
Kansas City
Balias
Ban Francisco
t o m
9,380,000
1,247,741,000
3.800.000
4.390.000
9.080.000
4.442.000
78,320,000
3.424.000
3.410.000
4.813.000
3.318.000
sa,«79,000
11,397,988,000
T o tal
I
9,080,000
890,091,000
0,800,000
6.890.000
9.080.000
4.448.000
30.880.000
0,484,000
0,410,000
6.810.000
6,818,000
88.499.000
»1,000,796,000
TREASURY DEPARTMENT
EEIEASE, MOHNIBG NEWSPAPERS,
Tuesday» September 21^ 1948.
'No, S-864
The Secretary of the Treasury announced last evening that the tender^ for
$1,000,000,000, or thereabouts, of 91-day Treasury bills to be dated September 23,
and to mature December 23, 1948, which were offered September 17, 1948, were
opened at the Federal Reserve Banks on September 20«
The details of this issue are as follows:
Total applied for — $1, 397,986, 000
Total accepted
- 1,000,796,000 (includes $50,380,000 entered on a non
competitive basis and accepted in full
at the average price shown below)
Average price
- 99*724/ Equivalent rate of discount approx* 1*092$
per annum
Range of accepted competitive bids:
High
- 99.730
Low
- 99*722
Equivalent rate of discount approx* 1*068$
per annum
Equivalent rate of discount approx* 1*100$
per annum
(6 percent of the amount bid for at the low price was accepted)
4
*
Total
Total
Federal Reserve
Accepted
Applied
for
District
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
TOTAL
$
9,550,000
* 1,247,761,000
3,800,000
6,390,000
9,080,000
4,442,000
75,320,000
3,424,000
3 ,410,000
6,815,000
5,515,000
22,479*000
$1,397,986,000
o0o
$
9,550,000
890,071,000
3,800,000
6,390,000
9,080,000
4,442,000
35,820,000
3 ,424,000
3,410,000
6,815,000
5, 515,000
22,479,000
$1,000,796,000
ÎREASUKÏ DEPARTMENT
Washington
Statement by Secretary Snyder at Press Conference,
Oklahoma City, Friday, September 24* 1943»
My visit to Oklahoma City gives* me an opportunity to express
first-hand to the residents of Oklahoma the Treasury’s appreciation of
the fine job they did during the Security Loan campaign* Oklahoma was
fifth among the States in purchases of Series E Savings Bonds» This
was an outstanding achievement.
The many men, women and children who served as volunteers under
the able bond-selling leadership of A* E. Bradshaw, President of the
National Bank of Tulsa and Oklahoma Chairman of the U. So Savings Bonds
Division of the Treasury, deserve the thanks not only of the Government
but also of all their fellow citizens» The Stated.increasing invest
ment in Savings Bonds marks.a certain improvement in the economic status
of Oklahoma’s people»
At the present time, the amount of this investment is mo re,than
^515,000,OOOo The potential benefits of this fact in terms of greater
security and the attainment of every conceivable family goal are selfevident.
The Treasury’s Savings Bonds program is a continuing effort, and
we need your further help- I hope our volunteer force in this State
will constantly encourage Oklahomans to buy more and more U. S. Savings
Bonds regularly, not only for their own good but for the good of the
country. I commend the Payroll Savings Plan and the Bond-a-Month Plan
especially to your attention. They make bond—buying easy.
0 O0
TREASURY DEPARTMENT
Washington
(The following address by Secretary Snyder before the Oklahoma
City Chamber of Commerce Public Forum at the Skirvin Hotel,
Oklahoma City, Okla,, is scheduled for delivery at 1 P.i!tt C»SfT ft
Friday, September 24, 19AS. and, is for release at that time»)
THE PÜBXIC DEBT AND THE PUBLIC WELFARE
It is a pleasure to return to the Southwest and to meet again with
Southwesterners, It is a particular pleasure to return to Oklahoma and
to this splendid city that is your capital.
Your State yields generously from its abundance to the material needs
of America, Its excellent educational institutions contribute much to
American culture. The whole canvas of Oklahoma life ,of yesterday and today
is colored with events and personalities which lend zest and flavor and
romance to the story of our times,
I should feel remiss if I did not pay my sincerest respects to those
persons who have developed Oklahoma *s great material and cultural wealth,
I pay my respects alike to labor and to management, and especially to
those early pioneers of agriculture and industry who, in a young and
groYdng State, often are management and labor in one,
I should be remiss, too, if I did not congratulate those who have
built this ce.pi tal city of Oklahoma—— its stately halls of government
its homes, churches, schools, business blocks, and factories, I congratu
late those who brought to reality the dream, of your magnificent civic
center. As a great focus of dynamic trade, a dominant livestock market,
a crossroads of rail, highway and air traffic, it is a city well deserving
of the Nation1s keenest attention, I want to thank the Oklahoma City
Chamber of Commerce very heartily for the privilege óf being here and of
talking to you,
I would like to use this occasion to discuss certain of the problems
uhich we have in connection with our Treasury activities. These are prob
lems in which you and every other American citizen have a continuing inter
est, because they are problems which affect directly and vitally the
economic welfare of our nation.
Good government, as you know, is not the responsibility merely of
government officials and employees. Rather, it is the responsibility of
each and everyone of us, This American democracy is made up of 14-6 million
people, and the quality of its Government will after all be determined by
■those I46 million people. Our Government is the security to our homes
end persons. It is the protection to the opportunities for individual
careers and advancement which private enterprise provides for us. Certainly
therefore, as a matter of personal, individual concern, it deserves our
sincere and active attention-
— o
<c
Therefore, the broad, basic Treasury problems arc your problems as
well as mine* And one of the most important of these problems is the
management of the public debt 0 Today this debt is at the figure of
$252 billion*
The immensity- of this debt is not the only mark of its social and
economic importance# There is great import also invits proportionate
size to the sum total of all the debts of our natron, ooih public and
private; in the extent to which its management policies affect all
monetary and business affairs; and in its cost to taxpayers in servicing
and retirement requirements *
Due to all of these factors, there is compelling necessity for our
debt management actions to be directed not only to considerations of
Government finance but also to considerations ox the economic 1 jell—beiHg
of the country# ■ 'The day-to-day business of banking and all other finan
cial institutions can b o sharply influenced by the actions ve take in
the management of this debt* And any influence felt directly oy finan
cial concerns will in turn'be felt indirectly by all other business
groups* Individuals know their economic status is involved not only
because of their savings and deposits in financial institutions which
own Federal securities, but also because individual citizens directly
own ^6? billion in Government obligations*
Xn view of this widespread distribution of the d e b w a n d in view
of the fact -that debt policy determinations arc echobd in almost innu
merable social and economic directions, it seems to me that' two plainly
evident conculsions can be d r a m * The first is that every citizen has
a personal Interest in those determinations and, as a corollary, has a
personal incentive for seeing that all the financial affairs of the
Government are handled wisely# The second is that upon the Government,
there rests a grave responsibility for proper debt management and for
the sound conduct of all Its financial affairs #
• In the nature of things, the Government of course must exercise
firm control of debt ..management so long as, the debt remains at its
present relative size and proportions* The to sponsxoiiity is one in
the conduct of which the Treasury has -.carried .out. a program ■of periodic
consultations, with advisory committees representing a, cross section of
American business life, for an-exchange of views and.information# These
consultations have been helpful in assisting the Treasury to determine
the soundest possible debt management policies* To seek this assistance
has been but common sense; it is equally common sense that due to the
effect of debt management policies upon our financial and economic life,
firm control is essential and the responsibility for it cannot be
delegated*.
The public's role, as X see it, should be one of constant alertness
toward..seeing that the exercise of debt management authority is at all
times directed toward the broad objective of the national welfare, and .
of support for that authority when it is so. directed*
The present economic situation is one which should make everyone
particularly aware of the significance of proper debt management policies*
In general, the over—all economic situation is encouraging* Employment
was never higher in this nation than new* in July, our economy provided
almost 62 million civilian jobs — a remarkable achievement *
According to figures compiled by the Federal Reserve Board, industrial
production .reached a record peacetime level early this year of 194 percent
of the 1935-39 average* The present level is slightly lower, but it still
is far above any level reached in the prewar years* Agricultural production
is close to the'wartime'peak and cash farm income, so. far this year, has
been running ahead of the same period last ¡¿near*
There a r c t o be scon a g r e a t many outw ard e v id e n c e s o f a re c o rd —b r e a k in g
p r o s p e r it y b e in g e n jo y e d b y th e m a jo r i t y o f our p e o p le * A t th e same t i n e
th ere rem ain h e a v y u n f i l l e d demands f o r goods w hich augur w e l l f o r a con
tin u ed h ig h l e v e l c f employment and i n d u s t r i a l o p e r a t io n * The p o s i t i o n
o f a g r i c u l t u r e i s su p p o rte d n o t o n ly by th e re m a rk a b ly s t r o n g f i n a n c i a l
c o n d itio n o f fa r m e rs g e n e r a l l y , b u t a l s o b y th e e x is t a n c e o f p r e v e n t iv e
m easures t o p r o t e c t im p o rta n t fa rm p ro d u c ts from, u n w arran ted d e c lin e s *
That much of the picture is encouraging, and indeed contributes to
our confident feeling that here in America we are working out a destiny
in which man will live with the maximum cf comfort and a minimum of
hardship* But it must be pointed cut that the pos tajar record of a truly
remarkable prosperity in cur land has been attended by seno unhealthy
symptoms* One is the persistent upward pre ssure on prices which has
been manifested within our economy* Tie have had to. give especial atten
tion to the price problem in formulating our public debt policies, because
those policies, if wisely determined and consistently executed, are
■capable cf helping ter protect the economy — and our prosperity — from
inflation’s undermining- influences*
The control of inflation is and has been for many months one of the
most important domestic issues facing the country* It is important to
all branches of the Government — to the Admini strati on and to the Congress*
It is important to the Secretar;/ of the Treasury, because as the Government’s
chief fiscal officer he is responsible for taking whatever actions can be
taken in the fiscal area to aid in the control of inflation*
Properly directed fiscal policy operates against inflation by applying
brakes td the economy’s spending.power* In any-period cf general price
rise, this a.nti—infle.tion weapon is effective, and, in fact, indispensable*
I am not suggesting that fiscal policy is a cure for all of the pains
which inflation may cause us* It has only limited applicability in dealing
with special situations such as the spectacular, if. not s taggering, imcrcascs vo have seen in the prices of certain individual commodities*
But within their sphere, fiscal measures cam demonstrate positive effect»*
iveness*
- 4 The chief fiscal weapon which lias been available to the Secretary of.
the Treasury in the anti-inflation fight lias been a budget surplus from
taxes* From the day I took office as Secretary, I have emphasized that
it was the Government*s responsibility to reduce its expenditures in all
possible directions and to accomplish a balanced budget* Through the ■
aggressive cooperation of the President and all Agencies of Government
the budget has been balanced during each of my two fiscal years in office,
first by about $750 million for the fiscal year X947# .and in the fiscal
yoar 1948 by the much more substantial sum of nearly $8c5 billion* These
favorable balances wore achieved in the face of developments abroad
widely as you know, forced us to make considerably larger postwar invest
ments in national security than we had thought would be necessary*
It was an anti-inflation factor of considerable significance that
we' had these surpluses to use in reducing'the public debt* There has
been a net debt reduction of $28 billion since the debt reached its peak
in February,•1946,' and of this net reduction the surpluses accounted for
over $7 billion* Funds for the remainder of the not retirement of
obligations came from- the cash balance which the Treasury ha<f fn hand at.
the end of the Victory Loan Drive*. .Tilth the end of the war, we'required
smaller daily cash balances to meet cur Government obligations and were
therefore enabled to apply the excess cash in debt reduction^
The Treasury Department has now been deprived of its most important
anti—inflation fiscal weapon, by reason of the fact that for the current
fiscal year the Government faces a deficit rather than a surplus* Due
to the tax reduction legislation which struck $5 billion from our
estimates of revenue for the fiscal-year 1949,.and to increased expendi
tures for national defense and for foreign aid, the Bureau of the Budget
has estimated that total G^-vemm.ont costs for the fiscal year 1949 m i l
exceed the Governments income by approximately;$ld5 billion, which
will eliminate the plan for further debt reduction this year*
Aside from all economic questions, I •believe that most Americans
would fool considerably more at ease during, the fiscal year 1949 if they
kncW that the public debt was being further reduced day by day*
I believe they realize that the present time, with its marked
prosperity, is a most propitious one to lessen further the debt burden*
I believe they realize uhis would be to the advmtagc not only of our
selves, but also of .future’ generations«
In connection with my references to Government revenues, I should
like to digress for a moment to say a word or two about the agency which
collects the Government1s taxes* That agency, as you know, is the Bureau
of Internal Revenue, The machinery of the BureatV operates in part through
the staffs of 64 Collectors of Internal Revenue, and a considerable number
of employees of those collectors arc here today as guests of the Oklahoma
City Chamber of Commerce*
,
The Bureau of Internal Revenue is one of the largest businesses in
the world* It collected $42 billion of revenue in the fiscal year 1948*
- 5 It administers the tax accounts of 65 million persons and corporations .
It has approximately 50,000 employees, and I feel that these employees do
an amazingly efficient job in handling this Vast business enterprise.
I am sure you have found the average Internal Revenue Service employee
courteous and patient as well as fair in any tax dealings you may have had
m t h him or her. I am glad to say that we of the Treasury in return find
the average .American completely honest m t h the Government and ready to
discharge his tax obligations in full.
To revert to my main theme, you may be sur© that the Government m i l
do everything in its power to maintain the integrity of Its obligations.
A few details of the steps we have taken so far should be of interest to
you.
One of our policies has been to concentrate deot reduction in that
portion of the debt held by the commercial banicing system. The advantage
of this is that it tends to alleviate problems of credit and of 'the monetary
supply. Actually, the reduction in the bonk—hold portion of the public
debt has been greater by about 03 billion than the over—all debt reduction.
This rías accomplished through a transfer in the debt holdings to non-bank
investors. If we increase our sales of securities to non—bank investors,
and use the money to pay off obligations hold by the comercial banking
system, -a basic improvement m i l have been acc.omplished, in the whole debt
situation, from the standpoint of letting off some of the steam behind
the inflation movement.
The portion of the do bt held by commercial and Federal Reserve banks
was $117 billion in February, 194b. It is now down to C$7 billion. That
is a reduction in excess of 25 percent and is more than we hoped for when
the debt pay-off program got under way.
That our bank-held debt reduction police/ has been an effective
anti-inflationary weapon is evidenced by the statistics on the money
supply *— that is currency outside of banks plus adjusted demand deposits-.
During the' past yea.r there has been no increase at all in the money supply —
the decline in Federal debt held by the banicing system has offset a corres
ponding in creas 6 in the money supply arising fr~ri.-other causes. The whole
increase in the money supply since VJ— Day has been only 9 percent.
Along tilth the declino in the amount of debt held by the banking system,
and parti Cully/ contributing to it, has been the use by the Treasury of another
fiscal weapon. I refer to the. increase in short-term'intcrest rates, which
was instituted in July of last year. The interest rate on 90-day Treasury
bills, which had been held at 3/8 of 1 percent for the entire war period, is
now a little over 1 percent; the rate on 1-year certificates of indebtedness,
which was 7/8 of 1 percent during the entire war period, is now 1-1/4 percent.
This increase in short-term Government rates is, in turn, reflected in
the rates which private borrowers must pay to obtain funds. These higher
rates have a re-straining influence on borr- x/ing and, therefore, have an antiinflationary effect on the economy.
X
- 6 -
!c have supplem ented th e s e s t e p s b y a s k in g b a n k e rs to s c r u t i n i z e t h e i r
loan a p p li c a t io n s c a r e f u l l y an d , i n s o f a r a s p o s s i b l e , to exten d o n ly such
loan s as Y/ould r e s u l t i n an i n c r e a s e i n th e p ro d u c tio n o f goods and s e r v i c e s .
You u n d o u b ted ly have h e a rd abo ut th e s p e c i a l program which th e Am erican
Bankers A s s o c ia t io n adopted i n t h i s c o n n e c tio n .
'Tith a Federal deficit once more' in prospect, the extent to which we
can Continue to work an improvement in the bank credit situation by the
retirement of bank-held debt m i l depend, in part, on the bond-buying
support of individual citizens.
If those citizens buy more Savings Bonds than they redeem, the funds
representing the excess cf sales over redemptions can be used to pay off
bank-held obligations, and thus continue the shifting of portions of the
debt from potentially inflationary to non—inflationary hands. And, I might
add, cash receipts of trust funds which the Treasury administers can be used
for the same purpose,
This is a considerably less effective phase of debt management than that
represented in the net debt reductions accomplished heretofore. Nevertheless,
let me assure you that it is a worth while and important phasef The inflation
problem is such that he cannot ignore any means of reducing ita? severity,
limited though the application of the means may be.
In concluding, let me leave with you the suggestion that if sound
Federal finance is a matter of personal, individual concern to you — and
I know that it is — here is a way in which you nay profitably give expression
to that concern.
Buy and hold the greatest amount of United States Savings
Bonds that your circumstances permit, Your every purchase is an anti—inflation
effort, and if there arc enough purchases throughout the country, the cumula
tive effect cf these efforts, in providing additional protection of our
economy from inflation’s dangers, will be .very va.lua.ble indeed.
—o 0 o -
The Bureau of Customs announced today that the global quota
of 45,656,420 pounds of cotton having a staple of 1-1/8 inches or
more, but less than l-ll/l6 inches, prescribed in the President*s
Proclamation of September 5, 1939, as modified^for the current quota
year, is filled.
Warehouse withdrawals covering 46,303,038 pounds of such
cotton were presented to customs at 12 noon, eastern standard time,
on September 20, 1948.
The collectors of customs in the districts
where the cotton is located have been authorized to release 98.6035
percentum of the cotton covered by each such entry.
O o
TREASURY DEPARTMENT
In fo r m a t io n S e r v i c e
WASHINGTON, D .C .
IMMEDIATE RELEASE
Tuesday, September 21. 1948
No, S—B66
The Bureau of Customs announced today that the global quota of
45,656,420 pounds of cotton having a staple of 1-1/8 inches or more,
but less than 1—11/16 inches, prescribed in the President* s
Proclamation of September 5, 1939, as modified- for thé current
quota year, is filled.
Warehouse withdrawals covering 46,303,038 pounds of such cotton
were presented to customs at 12 noon, eastern standard-time, on
September 20, 1943,
The collectors of customs in the districts where
the cotton is located have been authorized to release 98,6035 percentum
of the cotton .covered by each such entry.
o 0 o
ijgK*_IMMED1ATE RELEASE
^ "'‘S
c
?
5
The Bureau of Customs announced today that the current
quota for Peru on cotton having a staple of less than 1-1/8
inches (other than rough or harsh cotton having a staplfioof
less than 3/4 inches)-was filled by such cotton presented at
12 noon, eastern standard time, on September 20.
The Russian quota on the same kind of cotton was approxi
mately 60 percent, the Brazilian approximately 32 percent, and
the Mexican approximately 63 percent filled.
MABMrenr-9—82*^48—
TREASURY DEPARTMENT
WASHINGTON, D .C .
In fo r m a t io n S e r v i c e
IMMEDIATE RELEASE,
Thursday, September 23» 1948.
No«' S-S67
The Bureau of Customs announced today that the current
quota for Peru on cotton having a staple of less than 1-1/8
inches (other than rough or harsh cotton having a staple of
less than
3/4
inches) was filled by such cotton presented, at
12 noon, eastern standard time, on September 20*
The Russian quota on the same
kind of cotton was approxi
mately 60 percent, the Brazilian approximately 32 percent, and
the Mexican approximately
63
percent filled.
0 O0
- ■3 ~
purposes of taxation the amount of discount at which Treasury bills are originally
sold by the United States shall be considered to be interest.
and
Under Sections 1|2
117 (a) (1) of the Internal Revenue Code* as amended by S@§tipn 115> of the
Revenue Act of I 9I4.I, the amount of discount at which bills issued hereuMgr 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
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 closings 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 anount 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 ail 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
September 30 j 19U3
? 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.
September 30, lffll# .
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
Sxjtìdadtìcck
U S E
TREASURY.DEPARTANT
Washington
FOR RELEASE, MORNING NEWSPAPERS*
Friday* September 2k* 19k3«
<7
1
The Secretary of the Treasury, by this public notice, invites tenders for*
§>1* 100*000*000 ) or
91
thereabouts, of
“day Treasury bills, for cash and
<5
'W
in exchange for Treasury bills maturing
September 30. 19k8^ to be issued on
¿ic*
a discount basis under competitive and non-competitive bidding as hereinafter
September 3 0 « 19k8
) and
provided.
The bills of this series will be dated
will mature
December 30» 19kS
> when the face amount will be payable without
aSa
Tc,7
They y i 11 be issued in bearer form only, and- in denominations of
interest*
Tenders will be received at Federal Reserve Banks and Branches up to the
closing hour, two o ’clock p.m., Eastern Standard time, Monday» September 27» IfkS *
w
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 k, 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
theref or.
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
In fo r m a tio n S e r v i c e
EELEASE* H O M I N G NEWSPAPERS*
Friday, September 24, 1948«,
Wà s h i n g t o n ,
No# s-868
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
m exchange for Treasury bills maturing September 30 , 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 September 30* 194.8* and
will mature December 30, 1948, when the face amount .*ill be payable without
They wil1 be issiBd in bearer form only* and in denominations of
# f
, $5,000, $10,000, $100*000, $500*000, and $1*000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to
the closing hour, two o ’clock p*m*, Eastern Standard time* Monday, September 27*
ms* 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,
wi h not m ore than three decimals* e* g,* 99o925® inactions 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
rus 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
e era Reserve Banks and Branches* following which public announcement will
bhe Secretary of the Treasury of the amount and price range of
Ayr
blds* Those submitting tenders will be advised of the acceptance
flection thereof* The Secretary of the Treasury expressly reserves the
rigm; to accept or reject any or all tenders, in whole or. in part* and his
action m any such respect shall be final* Subject to these reservations,
tenders for $200,000 or less Without stated price from any
1 er will be accepted in full at the average price (in three decimals)
oi accepted competitive bids* Settlement for accepted tenders in accordance
wi the bids must be made or completed at the Federal Reserve Banks on
September 30, 1948, in cash or other immediately available funds or in a like
iace arnount of Treasury bills maturing September 30, 1948, Cash and exchange
naers will receive equal treatment* Cash adjustments will be made for
fferLces between the
value of maturing bills accepted in exchange
ana 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 shell 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 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 4.2 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 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 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
so bm ss,
s
m m xm
1948 •
Tba Sacratary of tba Treasury aanounaad iaat arenili« tbat tba tandars for
/»•"H
©
#1,100,000,000, or th@r®abouts, of 91-day Yreaaury M I X » to ba date* Saptaabar 30, and
j
to »»toro Bacaa&ar SO, 1948, trbieb ooro offarad Saptesaber 34, 1948, were opaned at tb»
Federai Re» arre Bank» on Septamber 37.
Th* dotai!» ©f thta iaaue aro a» follo*»t
Total applied for * $1,410,855,000
Total aceeptad
- 1,102,608,000 (inolttd»« #42,260,000 ontared on a non0
>
compatì tira basì# and aceeptad la full at
'
tba ave ruga pria» show» belo*)
Avara®© pria# Q / ~ 99.720 Ictuivelaat rato of diseouat approx. 1.109$ par annua
Bang* of aceeptad eompetitiv© bides
1
1
» 99.726 Ituivalont rato of discount approx. 1 . 0 8 # por «ano»
- 99.717 .
*
»
*
*
*
1.120$ *
•
Higb
Lo*
|o
I'
■■■■
’
(99 poroont of tba aaount bid for at tb» io* prioo *a» aoooptod)
fodorai Reaerra
Bietriot
Total
Applied for
Total
Aceeptad
Boston
Bew York
Fbiladolpbla
Cleveland
Richmond
Atlanta
Chicago
St. Ioni»
Minnoapolio
Kansas City
Balla»
8an Frano loco
#
|
T o m
80,160,000
1,126,042,000
89,98É,Q«K
48,802,000
2,888,000
9,186,000
110,756,000
6,166,000
8,818,000
8,327,000
4,075,000
42f409,000
$1,410,866,000
20,150,000
888,062,000
19,916,000
48,302,000
,
9,166,000
88,686,000
6,163,000
8,816,000
8,327,000
4,078,000
42,409.000
2 886,000
$1,102,605,000
EELEa SE, MORNING NE-iSPAPEBS,
No# S—869
Tuesday» Septeraber 28, 194-8»
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
September 30, and to mature December 30, 1948, which were offered September 24,
1948, were opened at the Federal Reserve Banks on September 27#
The details of this issue are as follows:
Total applied for - $1,410*855,000
Tot al acc epted
— 1,102,605,000
Average price
(includes $42,260,000 entered on a non
competitive basis and accepted in full
' at the average price shown below)
99*720 Equivalent rate of discount approx* 1*109$
per annum
Range of accepted competitive bids:
High
- 99*726
Low
- 99*717
Equivalent rate of discount approx* 1*084$
per annum
Equivalent rate of discount approx* 1*120$
-per annum
(99 percent of the amount bid for at the low price was accepted)
Federal Reserve District
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St# Louis
Minneapolis
Kansas City
Dallas
San Francisco
TOTAL
-.Total
Applied for
$
2b,150, 000
1,125,042,000
27,765,000
45,302,000
2,885,000
9,166,000
110,756,000
6,163,000
8,815,000
8,327,000
4,075,000
42,409»000
$1,410,855,000
Total
Accepted
$
20,130,000
852,062,000
17,715,000
45,302,000
2,885,000
9,166,000
85,556,000
6,163,000
8,815,000
8,327,000
4,075,000
42*409,000
^1, 102, 605,000
-
2
-
■S?z>
Information from the Treasurer Department’s reopht oensus of a^aets^whioh
remain^4 blooked oà June 1, l$£8 if already bein^Made availa^Ieyto the /
EuropeanSgooipieht countries# Partially tabulati^ results frotf this census
reveaÌN^loofced Assets in the United States worth a ^ r h * ^ t e ^ :>f' billion
dollars#\Of this amount approximatel^shalf iras reputed as "belongina^to
nationals d^oouht^ies reoeiving Amerio an assistanoe èfddt is believed
that save for\the census these oountries,^«puld be withp&i knowledge regard- /
ing a sul^etantìtl portiòàof these%«,ssj4s#
Y
r
The 'c ont r ol s ove rv the import at i on .of s^ourabies which onod\formed a
m ajor part o f the fre e z in g program have "been\la1i ^ l y removed, b u t, to the
exten t necessary to prevent the s a le here o f renemy' 1 ooted s e c u r it i e s , c e rta in
s e le c t iv e do^krols have been retain ed # I t was underN^hese c o n tro ls th a t a
rin g d ealin g in a to le n s e c u r it ie s was re c e n tly in d ic ted in Boston fo r im
p o rtatio n s o f looted s e c u r it ie s worth more than $200,000•
DEPARTMENT
[ngton
P re ss S e rv ic e
Ho. j 5 - f ï h
A
y* ar
pie c lo se o f store than e ig h t years
Jd o f c o n tro llin g fo re ig n a s s e ts in
by th e T reasury Department almost
jo i t s ultim ate liq u id a tio n by the
s id e n t ia l t r a n s fe r o f ju r is d ic t io n *
ffcive as o f m idnight, September 30 ,
in February and were a t th a t time
i l and communicated t o the Congress*
jgu latio n s s e t t in g fo rth the organijControl^and other re la te d regu latio n s
These re g u la tio n s are b ein g superfpe issu ed by the Department o f
¡Id began w ith the fre e z in g order o f
HAINS
_
c jr /
German in vasion of Norway and Denmark*
HC
IM I H
I ipanded u n t il by 19 4 1 i t covered China
and Japan as w e ll as a l l the cou n tries o f con tin en tal Europe, except Turkey*
A 19 4 1 census revealed th a t the Treasury Department was then c o n tro llin g
fo re ig n a s s e ts in the U nited S ta te s worth more than e ig h t b i l l i o n d o lla r s .
A primary aim o f the fre e z in g co n tro ls was to prevent n a tio n als o f the
invaded cou n tries o f Europe from being d espoiled and fo rced under duress to
t r a n s fe r to the A xis powers t h e ir claim s to American a s s e ts * The fre e z in g
c o n tro ls a ls o served in many ways as a weapon o f economic w arfare to hamper
the fin a n c ia l and commercial a c t i v i t i e s o f our World War I I enemies.
The elim in atio n o f r e s t r ic t io n s on tra n sa c tio n s and the gradual un
blocking o f fo re ig n a s s e ts began s h o r tly a f t e r the end of a c tu a l h o s t i l i t i e s .
The elim in a tio n o f th e se co n tro ls has been handled so as to m aintain the
major o b je c tiv e s fo r which th ey were in s titu te d * Unblocking o f property has
proceeded on a b a sis which has preserved the a b i l i t y o f th e U nited S ta te s t o
v e s t a sse ts a c t u a lly belonging t o enem ies. The procedures now in e f f e c t fo r
unblocking fo re ig n a s s e ts in th e U nited S ta te s have a ls o been developed w ith
a view tcwgrd a s s is t in g
th« Implementa tio n o f the European Reoevery
F ^ ^ g r ^ * «Thrmcfti wnese procedures the governments which reo eive American a la
informa H on "'¥SlW 1^ e¥plT iT ^ th l^ tsw fc ir''sof-HîheA^,nationals in the
U n ited^ S tates so th a t such a s s e ts or thé income produced by them can be
employed In th e ta s k o f r e h a b ilita t in g th e European SoonoraylS
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS
!
Press Servios
No. 3 - 7 7 1
Secretary Snyder today announced the close of more than eight years
of activity by the Treasury in the field of controlling foreign assets in
the TJnited States. The program started by the Treasury Department almost
a decade ago is to be carried through to its ultimate liquidation by the
Department of Justice pursuant to a Presidential transfer of jurisdiction.
Plans for this transfer, which is effective as of midnight, September SO,
were made by the interested departments in February and were at that time
approved by the National Advisory Council and communicated to the Congress.
Accordingly, the Treasury Department regulations setting forth the organi
zation and procedures of Foreign Funds Control,and other related regulations
promulgated in 1942^are being revoked. These regulations are being super
seded by new regulations similar in scope issued by the Department of
Justice.
Treasury participation in this field began with the freezing order of
April 1940, issued at the time of the German invasion of Norway and Denmark.
The scope of the order was gradually expanded until by 1941 it covered China
and Japan as well as all the countries of continental Europe, except Turkey.
A 1941 census revealed that the Treasury Department was then controlling
foreign assets in the TJnited States worth more than eight billion dollars.
A primary aim of the freezing controls was to prevent nationals of the
invaded countries of Europe from being despoiled and forced under duress to
transfer to the Axis powers their claims to American assets. The freezing
controls also served in many ways as a weapon of eoonomio warfare to hamper
the financial and commercial activities of our World War II enemies.
The elimination of restrictions on transactions and the gradual un
blocking of foreign assets began shortly after the end of actual hostilities.
The elimination of these controls has been handled so as to maintain the
major objectives for whioh they were instituted. Unblocking of property has
proceeded on a basis whioh has preserved the ability of the United States to
vest assets actually belonging to enemies. The procedures now in effect for
unblocking foreign assets in the United States have also been developed with
a view toward assisting in_tha Jwp^flfflentation of the European Reooverv
Program. r*jjvémîrntfflgse procedures th«T"govi^^
^a^^bhtaidTng^ informa tïo
n
'
‘
■tyf-^th^ir-'-nationals in the
Unitgd- States so that such assets or the income produced by them can be
'nrrpioytd in the tank of rehabilitating the European Economy
TREASURY DEPARTMENT
In fo r m a t io n S e r v i c e
RELEASE, MORNING PAPERS,
Thursday, September 30» 1948«
WASHINGTON. D .C .
No £-870
Secretary Snyder today announced the close of more than eight years
of activity by the Treasury in the field of controlling foreign assets in
the United States* The program started by the Treasury Department almost
a decade ago is to be carried through to its ultimate liquidation by the
Department of Justice pursuant to a Presidential transfer of jurisdiction*
Plans for this transfer, which is effective as of midnight, September 30
were made by the interested departments in February and were at that time
approved by the National Advisory Council and communicated to the Congress.
Accordingly, the Treasury Department regulations setting forth the organi
zation .and procedures of Foreign Funds Control, and other related regulations
promulgated in 1942, are being revoked. These regulations are being super
seded by new regulations similar in scope issued by the Department of
Justice.
Treasury participation in this field began with the freezing order of
April 1940, issued at the time of the German invasion of Norway and Denmark.
The scope of the order was gradually expanded until by 1941 it covered China
and Japan as well as all the countries of continental“Europe, except Turkey*
A 1941 census revealed that the Treasury Department was then controlling
foreign assets in the United States worth more than eight billion dollars.
A primary aim of the freezing control was to prevent nationals of the
invaded countries of Europe from being despoiled and forced under duress to
transfer to the Axis powers their claims to American assets* The freezing
controls also served in many ways as a weapon of economic warfare to hamper
the financial and commercial activities of our World War II enemies.
The elimination of restrictions on transactions and the gradual un
blocking of foreign assets began shortly after the aid of actual hostilities.
The elimination of these controls has been handled so as to maintain the
najor objectives for which they "were instituted. Unblocking of property has
proceeded on a basis which has preserved the ability of the United States to
vest assets actually belonging to enemies* The procedures now in effect for
unblocking foreign assets in the United States have also been developed with
a view toivard assisting in the implementation of the European Recovery
Program*
IMMEDIATE RELEASE,
Wednesday, Septes&er 29» 19l*8.
The Secretary of the Treasury today announced the subscription and allotment
figures with respect to the current offering of 1-1/%. percent Treasury Certificates
of Indebtedness of Series 0-191*9, to be dated October 1, 191*8, open to the holders
of Treasury Certificates of Indebtedness of Series J~19l*8 and Series K-19U8, and
Treasury Motes of Series B-19&8, all maturing October 1, 191*8.
Subscriptions and allotments were divided among the several federal Beserve
Districts and the Treasury as follows*
Federal Beserve
District
Boston
Mew fork
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St* Louis
Minneapolis
Kansas City
Dallas
San Francisco
Treasury
TOTAL
Series J-19U8
Certificates
Exchanged
Series K-19i*8
Certificates
Exchanged
Notes
Exchanged
Total
Exchanges
$
I
I
$
61*,1*95,000
.
38.382.000
539 5 5 5 .000
67,15%,000
17.655.000
1*3,799,000
156.393.000
52 609.000
53,586,000
59 11 8,000
31*,779,000
71*,269,000
1*,581,000
.
,*
$1,256,1*1*5,000
1*8,71*1,000
611*,551*,ooo
Series B-19i*8
116,938,000
2,231*, 108,000
9,116,000
110.208.000
U 7 , 215,000
101,361*, 000
273,152,000
1,767,000
230,171*, 000
3 ,1*3 8 ,217,000
221*,10 3 ,0 0 0
206 .10 5 .0 0 0
116^7,000
190.793.000
796.693.000
213.598.000
213.032.000
21*3,733,000
181*,108,000
1*62,212,000
15,1*61*,000
$1,365,1*1*2,000
$3,912,862,000
$6,53k, 71*9,000
1*9,966,000
135.755.000
32.971.000
1*2,$09|000
1*9,506,000
182 860,000
55,1*55,000
1*9,238,000
67.370.000
1*7,965,000
1 0 5 ,91*0 ,0 0 0
,
m * , 791,000
55,9Ö,Oöö
97,1*
88,000
1*
57 ,1*
1*
0,000
105,531*, 000
TREASURY DEPARTMENT
WASHINGTON, D .C .
In fo r m a tio n S e r v i c e
IMMEDIATE RELEASE,
Wednesday, September 29, 1948.
No. S*871
The Secretary of the Treasury today announced the subscription and allotment
figures with respect to the current offering of 1-1/4 percent Treasury Certificates
of Indebtedness of Series G-1949, to be dated October 1, 1948, open to the holders
of Treasury Certificates of Indebtedness of Series J-1948 and Series K-1948, and
Treasury Notes of Series B-1948, all maturing October 1, 194-8.
Subscriptions and allotments were divided among the several Federal Reserve
Districts and the Treasury as follows:
Federal Reserve
District
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Treasury
TOTAL
Series J-1948
Certificates
Exchanged
Series^ K-1948
Certificates
Exchanged
Series B-1948
Notes
Exchanged.
Total
Exchanges
$
$
$
$
64,495,000
589,555,000
38,382,000
67,194->000
17,655,000
4-3,799,000
156,393,000
52,609,000
53,586,000
59^14-8,000
34-,779,000
74-,269,000
4-,581,000
$1,256,445,000
4-8,74-1,000
614-, 554-,000
.49,966,000
32,971,000
42,909,000
49,506,000
182,860,000
55,455,000
49,238,000
67,370,000
47,965,000
114,791,000
9,116,000
$1,365,442,000
116,938,000
2,234,108,000
135,755,000
105 ,940,000
55J953,ooo
97,488,000
457,440,000
105,534,000
110,208,000
117,215,000
10 1 ,364,000
273,152,000
1,767,000
13,912,862,000
230,174,000
3,438,217,000
224,103,000
206,105,000
116,517,000
19u,793,000
796,693,000
213,598,000
2 13 ,032,000
243,733,000
184-, 108,000
462,212,000
1 5 ,464,000
16,534,749,000
- 3 c
■
<- 0
5 1
p u rp o se s o f t a x a t i o n the amount o f d is c o u n t a t w hich T re a s u r y b i l l s a re o r i g i n a l l y
s o ld b y th e U n ite d S t a t e s 7 s h a l l be c o n s id e re d to be i n t e r e s t .
and 1 1 7
Under S e c t io n s 1*2
(a ) ( 1 ) o f . th e I n t e r n a l Revenue Code, a s amended b y S e c t io n l l £
o f the
Revenue A ct o f 19 U l, th e amount o f d is c o u n t a t vdiich b i l l s is s u e d hereu n d er are
s o ld s h a l l no t be c o n s id e re d t o a c c ru e u n t i l such b i l l s s h a l l be s o ld , redeemed or
o th e rw ise d is p o s e d o f , and su ch D i l l s a r e e x c lu d e d from c o n s id e r a t io n a s c a p i t a l
a sse ts.
A c c o r d in g ly , th e owner o f T re a s u r y b i l l s
(o th e r th a n l i f e
in su ra n c e
com panies) is s u e d h ereu n d er need in c lu d e i n h i s income t a x r e t u r n o n ly th e
d i f f e r e n c e b etw een th e p r i c e p a id f o r such b i l l s , w h e th er on o r i g i n a l is s u e or
on su b seq u en t p u rc h a s e , and th e amount a c t u a l l y r e c e iv e d e i t h e r upon s a le or
red em p tion a t m a t u r it y d u rin g th e t a x a b le y e a r f o r w hich the r e t u r n i s made, a s
o r d in a r y g a in or l o s s .
Treasury Department Circular No. [¡.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
-
2
-
CTKIA
U
1
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
October
h
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..
October 7» 19il£
a^pc
Cash adjustments will be
made for differences between the par value of maturing bills accepted in exchange
and the issue price of the riew 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
i x m a m
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS*
Friday, October 1, 191*8.
The Secretary of the Treasury, by this public notice, invites tenders for
$ 1 ,1 0 0 ,0 0 0 ,0 0 0
, or thereabouts, of
91 -day Treasury bills, for cash and
P F
~WF~
in exchange for Treasury bills maturing
October 7. 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
October 7* 19U8 ' , and
f
--------- m
—
January 6. 19U8
, when the face amount 1(7111 be payable without
Tr7
They will be issued in bearer form only, and in denominations of
$1,000, $5*000, $10,000, $100,000, $500,000, and $1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the
closing hour, two o ’clock p„m., Eastern Standard time, Monday, October ij., 19i*8_
jgc
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
theref or.
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
WASHINGTON, D .C .
FiELEASE, MORETMG NË'JSPAPEES,
Friday, October 1, 1948«
No« S —8 7 2
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 J
in exchange for Treasury bills ‘
maturing 'October 7, 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 October 7, 1948, and will mature January 6, 1948, ivhen the face amount will be payable without,
interest# They will be issued in bearer form only, and in denominations of
$>1,00Q, $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.nu, Eastern Standard time, Monday, October 4*
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,
vdth 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 Re serve 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
oi 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 tehders 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 Banks on
October 7, 1943^ in cash or other immediately available funds or in a like
face amount of Treasury bills maturing October 7, 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 to
estate, inheritance, gift or other .excise taxes, whether Federal or btate,
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 taxing authority* For purposes of taxation
the amount of discount at which Treasury bills are originally sold by the
United States shall be considered to be interest* Under Sections 1+2 and
117 (a) (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 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 No* 41B, 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,
M a i ) HOMING- NEWSPAPERS,
Tuesday, October 5, 1943,
5 ,
ÿ 7 3
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 October 7, 1948,g)]
and t© mature January 8, 1949, which were offered October 1, 1948, were opened at the
Federal Reserve Banks on October 4*
The details of this issue are as follows:
<3
Total applied for - $1,676,128,000^
Total accepted
- 1,101,519,000 (includes $51,397,000 entered on a non(Ti
competitive basis and accepted in full at
the average price shown below)
Average price
^99.718/ Equivalent ra$e of discount approx. 1.114$ per annum
Bangs of accepted eos^etitive bids:
w
H
(f
• 99.724 Equivalent rate of discount approx. 1.092$ per annua
»
«
tt
«
1.120$ "
* *
99.717 Q
'*
High
Low
1Ivi
(41 percent of the amount bid for at the low price was accepted)
Federal Reserve
District
Total
Applied for
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
i
TOTAL
44,807,000
>374,244,000
li
54,555,000
30,087,000
4,880,000
3,145,000
89,976,000
4,445,000
7,910,000
15,149,000
18,932,000
52.840.000
a ,674,128,000
Total
Accepted
$
40,051,000
883,921,000
86,718,000
24,077,000
4,880,000
3,148,000
43,535,000
4,209,000
6,435,000
13,910,000
11,870,000
38,895.000
11,101,319,000
RELEASE, MOTEJING NEWSPAPERS,
Tuesday, October 5» 1948.
No. St-873
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
October 7, and to mature January 6, 1949, which were offered October 1,
1948, were opened at the Federal Reserve Banks on October 4.
The details of this issue are as follows:
Total applied for - ' 41 , 676,128,000
Toual accepted
1,101,319,000 (includes $>51,397,000 entered on a non
competitive basis and accepted in full
at the average.price shown below)
Average price
— 99*716^ Equivalent rate of discount approx. I.II4$
per annum
Range of accepted competitive-bids;
High
-
Low
-
99*724 Equivalent rate-of discount approx. 1,092$
per annum
99*717 Equivalent rate of discount approx. 1.120$
per annum
(41 percent cf the amount bfd for at the low price was accepted)
Federal Reserve
District
Total
Applied for
Total
Accepted
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta,
Chicago
St* Louis
Minneapolis
Kansas City
Dallas
San Francisco
$
44,207,000
1,374,241,000
36,355,000
30, 027,000
4,880,000
3 ,143,000
89,976,000
4,445,000
7,910,000
15,149,000
12 ,932,000
5.2,860,000
$
$1,676,128,000
$1,101,319,000
TOTAL
0O0
40,031,000
883,921,000
26,715, 000
24, 077,000
4,880,000
3,143,000
43,533,000
4,209,000
6,435,000
13,910,000
11,570,000
38,895,000
purposes of taxation the amount of discount at wjhich Treasury bills are originally
sold by the United States shall be considered to be interest,
and 117 (a) (1) of the Internal Revenue Code, as amended
Under Sections 1|2
geeiion ll£ of the
Revenue Act of 19tl| the amount of discount at ydii§h billg issued hereunder are
sold shall not be considered to accrue until suelr 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. Ul3, 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
-
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
October lit. 19U8
, in cash or other immediately avail-
able funds or in a like face amount of Treasury bills maturing
Cash and exchange tenders wall receive equal treatment.
October lib 15U8 .
^
-
Cash adjustments will be
made for differences between the par value of maturing bills accepted in exchange
and the issue price of the nevf bills.
The income derived from Treasury bill's, 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
m
m
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Friday, ^October 8, 191*8._____ _
The Secretary of the Treasury, by this public notice, invites tenders for
in exchange for Treasury bills maturing
October ll*. 191*8
, to be issued on
iBS*
a discount basis under competitive and non-competitive bidding as hereinafter
provided.
The bills of this series will be dated
will mature _
interest.
i
'3, 19lt9
October Ik. 19h8
3 and
, Yfhen the face amount will be payable without
They Yriil be issued in bearer form only, and in denominations of
Tenders Yri.ll be received at Federal Reserve Banks and Branches up to the
closing hour, two o ’clock p',m,, Eastern Standard time,
1*rmd«yt
October 11» 19l*8 •
US
Tenders Yri.ll 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, Yrith 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
Yihich will be supplied by Federal Reserve Banks or Branches on application
therefor.
Tenders Yri.ll be received yrithout 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, MORNING NEWSPAPERS,
Friday, October S» 194,8»
WASHINGTON, D .C .
No# S-874
The Secretary of the Treasury, by this public notice, invites tenders
for $900,000,000, or thereabouts, of 91-day Treasury bills, for cash and
in exchange for Treasury bills maturing October 14, 194$, to be issued on
a discount -basis under competitive and non-competitive bidding as hereinafter
provided*, The bills of this series will be dated October 14 , 1948, and
will mature January 13, 1949, when the'fa'ce 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 Standard tim% Monday, October 1 1
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 thai 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 he accompanied by payment of 2 percent
01 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
hp
Jes^fve Banks and Branches, follovdng which public announcement will
e ?
Secretaiy °T "khe Treasury of the amount and price range of
ccepted bids«, Those submitting tenders will be advised of the acceptance
f £+^?C^ ’°n 'thereof. The Secretary of the Treasury expressly reserves the
ight to accept or reject any or all tenders, in whole or in part, and his
ion m any such respect shall be final# Subject to these reservations,
on-competitive tenders for #200,000 or less without stated price from any
o-p6-.. er will be accepted in full at the average price (in three decimals)
■* 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 lodal 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' bf 1941* the amount of discount at which bills'issued hereunder,
are sold shall not be1considered to accrue until such-bills shall bejBpldw '
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 pride paid for such -bills, whether,
on original issue or on subsequent purchase, and the ‘amount actually received
either upon aaie or redemption at maturity during the taxable year for which
the return is made, as ordinary gain or loss#
Treasury oepartmehi Circular No# 418, as amended, and this notice,
prescribe the terms of the Treasury bills and*govern1
'the conditions of thsirfr
issue. Copies of the circular may be obtained from any Federal Reserve Bank'
or Branch.
0O0
Boatswain*s Mate Reynolds, one o f the designated swimmers*
requested perm ission from the sh ip*s execu tive o f f i c e r to go over
the sid e *
With complete d isre g a rd f o r h is own p erso n al sa fe ty *
he jumped in to the water* and swam to Gray* who was near exhaustion
While the two s a il o r s were being h oisted from the s e a , Reynolds
used h is own body to fend the rescued man o f f th e s id e o f the sh ip*
Because o f the v io le n t r a in , the confused seas* and the heavy r o l l
o f the v e s s e l, t h is rescu e was considered u n u su ally hazardous*
In p resen tin g the gold medal, S e c re ta ry Snyder p ra ise d Reynold
i n i t i a t i v e , courage and d isreg ard fo r h is own p erso n al s a fe ty *
This a c t , he pointed out, was “ extrem ely h e ro ic , and f a r beyond
the c a l l o f d u ty ."
Reynolds, who i s a n a tiv e of Chincoteague, V a ., i s 32 y ea rs
o ld , and has been in the Coast Guard sin c e 1939*
S e v e r a l other
members o f h is immediate fa m ily a re attached to the s e rv ic e *
On
March 6, 19 4 3, he was chosen as “Hero o f the Y ear” by the Second
D iv is io n , Post 2 7, American Legion, Baltim ore* Md*, and was awarded
th e Medal o f V alor fo r th e rescu e o f Gray*
Secretary Snyder today awarded the Treasury Department Gold
Lifesaving Medal to Marion K. JReynolds, Boatswain's Mate 1st Class/
United States Coast Guard, of Aliston, Massachusetts, for «heroic
action beyond the call of duty« in saving the life of a shipmate tarfV\o-~
ffll.T .overboai^’fg€^ T
ft
x ..n
j
osfcjb»
,7,agt
'/Wl\
*fi
A
/
ff
.
<
•
The incidents leading up to the near tragedy, as described
£f3t~
by the United States Coast Guard, began
September 1, 1947, while
the cutter MCCULIDUGH was on weather patrol in the North Atlantic
approximately eight hundred miles northeast of Argentia, New Foundland. A dispatch had been received warning that a storm of hurri
cane force was approaching. On the next day, September 2, the sea
was rough, a hard rain was falling, and the vessel was rolling
heavily. In the darkness of early morning, Bobert T. Gray, an
electronics technician, was knocked off his feet by the swing of
a
heavy water-tight door, and slid under the lower lifeline into
the sea.
The general alarm was sounded, life rings with lights attached
were thrown over the side, and a messenger was dispatched to get
men into swimming suits with lines attached, and to post lookouts
around the ship. One of the life rings reached the foundering
man, but an instant after he grasped it the light went out. The
ship's searchlight shortly afterward picked out Gray, who was
feebly attempting to swim toward the vessel, some seventy—five
yards 3 away.
TREASURY DEPARTMENT
Wa s h i n g t o n ,
In fo r m a t io n S e r v i c e
RELEASE, MOHNIEG NE.ÍSPAFEES,
Saturday, October 9s 194-8«
No« S— 875
Secretary Snyder today awarded the Treasury Department Gold Lifesaving
Medal to Marion K* Reynolds, Boatswain*s Mate 1st Class, United States
Coast Guard, of Allston, Massachusetts, for "heroic action bejrond the call
of duty11 in saving the life of a shipmate under unusually hazardous con
ditions«
The. incidents leading up to the near tragedy, as described by the
United States Coast Guard, began on September 1, 1947, while the cutter
MCCULLOUGH was on weather patrol in the North Atlantic approximately
eight hundred miles'northeast of Argentia, New Foundland. A dispatch had
been received warning that a storm of hurricaneforce was approaching.
On the next day, September 2, the sea was rough, a hard rain was falling,
and the vessel was rolling heavily« In the darkness of early morning,
Robert T* Gray, an electronics t^clinician, was knocked off his feet by the
swing of a heavy water-tight door, and slid under the lower lifeline into
the sea*
The general alarm vías sounded, life rings with lights attached were
thrown ever the side, and a messenger was dispatched to get men into
swimming suits with lines attached, and to post lookouts around the ship«
One of the life rings reached the foundering man, but an instant after
he grasped It the light went out« The ship’s searchlight shortly-after
ward picked out Gray, who was feebly attempting to swim toward the vessel,
some seventy-five yards away*
Boatswain’s Mate Reynolds, one of the designated swimmers, requested
permission from the ship’s executive officer to go over the side* With
complete disregard for his own personal safety, h e .jumped into the water,
and swam to Gray, who was near exhaustion« While the two sailors were
being hoisted from the sea, Reynolds used his own body to fend the res
cued man off the side of the ship. Because of the violent rain, the
confused seas, and the heavy roll of the.vessel, this rescue was con
sidered unusually hazardous*
In presenting the gold medal, Secretary Snyder praised Reynolds
initiative, courage and disregard for his own personal safety. This act,
he pointed out, was "extremely heroic, and far beyond the call of duty"»
Reynolds', who is a native of Chin cote ague, Va., is 32 years old,
and has been in the Coast Guard since 1939* Several other members of
his immediate family are. attached to the service* On March 6, 1943* he
was chosen as "Hero of the Tear" by the Second Division, Post 27,
American Legion, Baltimore, Mdc, and was awarded the Medal of Valor for
the rescue of Gray* •'
oOo
TREASURY DEPARTMENT
Washington
(The following address by Secretary Snyder at a dinner
meeting of New York Post No. 505} Veterans of Foreign
Wars, Waldorf Astoria Hotel, is scheduled for delivery
at 8s30 p ,m.r E. S, T .. Saturday« October 9. 19A8. and
is for release at that time,)
It is a privilege at any time to speak in this great city of New York,
which in so many respects, is the first city of the world. And, it is'nbt
only a privilege but a very great pleasure to be with you on such, an oc
casion as the present one. I join most sincerely with you of this Post,
the Veterans of Foreign Wars, in naying honor to one of New York*s esteemed
citizens.
The Treasury is no less proud to have Captain Pedrick as a Collector
of Internal Revenue, than New York is proud to have him as a leader in
many notable civic projects.
HLs District, the Second District of New York, is responsible for
the income tax accounts of almost 750,000 individuals and of more than
200,000 corporations. Millions of tax documents — six million tax with
holding forms alone — pass .each year through the offices under his juris
diction.
While these figures illustrate the importance of Captain Pedrick1s
post as Collector, not only to the Government, but' also to New York, it
would be difficult, indeed, to appraise his civic accomplishments.
I have referred to New York as a first d t y in the world. It is
that in many respects, but perhaps one of the most important of these is
its role as the world*s greatest port.
In this role, New York has long played a vital part. The currents
of domestic and foreign trade meet here as nowhere clso on earth.
New York came into its own as a trading center early in the history of
this country, and ever since that time she has been one of the greatest
strategic ports of the world. Shifting economic forces have from time
to time diverted portions of her tonnage to other ports and of her busi**
ness to other markets, but her essential leadership in the trade world
remains today unchallenged.
Because of this preeminence, New York is quick to feel the impact
of social or economic disturbance at home or abroad. The impact of those
disturbances which are long sustained Tail sooner or later reach through
every level of New York business and social life.
And, because Not/ York is so assuredly a world product, and functions
so importantly in world life, this city bears a clear responsibility,
through those contacts, to the people of our country*
That responsibility has many ramifications and many facets© But I
think it may all be summed up as a duty to support faithfully all those
policies and practices which are aimed at the sound solution of our
national and international problems© No lesser obligation would measure
up logically and historically to the position which this city has achieved
in world affairs©
New York has discharged this obligation faithfully in days gone by,
and I am sure may be counted upon to discharge it no less ably in days to
ccme©
I do not need to tell you, however, that great problems confront us
all© Symptoms of underlying dangers to our economic environment are per
haps most apparent to us when they affect us personally — when they can
mean immediate trouble here at home0
If a stranger to the American scene were to survey it from the vantage
point of New York or any other great focal point of American activity, he
would be first impressed try visible signs of a phenomenal prosperity in all
directions© The American economy in recent months has achieved the most
productive tempo in its history# Industrial output, employment, and
agricultural income all have reached record-breaking stages this year,
and these stages continue well sustained® Heavy demands for a wide variety
of products remain unfilled, and these demands are backed by a large volume
of liquid assets in the hands of both individuals and corporations©
America, to put it briefly, never before has known such a measure of
material well-being»
Behind the humming of factory wheels, the harvesting of huge crops,
and the sight of an unprecedented employment of 62,000,000 persons, there
are many other reasons for confidence in our continued prosperity©
We know that America still possesses uncalculated resources©
'We know that the American people have a great reservoir of energy,
ingenuity and intelligence 0
We know that our system of democratic government with our parallel
system of free enterprise provides the human race with greater opportunity
for advancement than any other system or combination of systems so far
developed by man©
All these circumstances and these characteristics of our life and
people, would, disregarding certain underlying tendencies, quickly con
vince the most skeptical that there should be no"room in this nation today
for doubts about the future, Tirere it not that within the framework of
American life today, there are problems of far-reaching economic, political
and social significance© These problems must be carefully resolved if we
are to assure continuance of Americans prosperity©
- 3 -
Y ou a r e f a m i l i a r w it h t h e s e home f r o n t p ro b le m s, and I am .sure t h a t
you w i l l g iv e them th e c lo s e a t t e n t i o n t h a t th e y d e s e r v e 0 At th e same
tim e , ?ire must r e c o g n iz e t h a t th e im pact o f i n t e r n a t i o n a l problem s upon
our economy i s n o n e th e le s s im p o rta n t — a f a c t o f w h ich y o u V e te ra n s a re
w e ll aw are®
But th e t h r e a t t o our n a t io n a l s e c u r i t y w h ich has been so p l a i n l y
e v id e n t i n th e l a s t y e a r i s n o t th e o n ly p r e s e n t problem o f f o r e i g n
o r ig i n w hich i s o f v i t a l co n cern t o u s 0 Slow r e c o v e r y from w ar *s p h y s i c a l
d e s t r u c t io n and econom ic d i s l o c a t i o n s , and slo w r e t u r n t o f u l l p r o d u c tio n ,
have been th e g e n e r a l e x p e r ie n c e o f most o f th e n a t io n s o f th e w o r ld 0
The r e s t o r a t i o n o f norm al t r a d e has been g r e a t l y han d icapped a s a r e s u l t ,
and th e fin a n c in g o f even li m i t e d t r a d e h as been most d i f f i c u l t ®
As an exam p le, th e m onetary problem h as been paramount i n p r a c t i
c a l l y e v e r y in s t a n c e ® War and p o stw a r c o s t s d ra in e d th e g o ld and d o l l a r
r e s e r v e s o f most govern m en ts, and t h i s and o th e r f a c t o r s have u p se t
normal c u rre n c y o p e r a t io n s ® The s t a b i l i t y o f exchange r a t e s , w h ich i s
so n e c e s s a r y t o a c c o m p lish a f r e e r flo w o f t r a d e , rem ains a m a tte r o f
s e r io u s co n cern ®
We had hoped, a f t e r th e v i c t o r y , t h a t p r i v a t e in v e stm e n t o f A m erican
c a p i t a l ab ro ad would make an e a r l y and h e lp f u l c o n t r ib u t io n t o r e c o v e r y ®
U n fo r tu n a te ly , t h e r e a r e to d a y few c o u n t r ie s where c o n d itio n s a r e su ch
as t o a t t r a c t o u ts id e c a p i t a l ®
And, th e r e a r e o th e r tro u b leso m e problem s th ro u g h o u t th e w o rld w h ich
o f n e c e s s i t y w i l l have an a d v e r se e f f e c t on th e fu tu r e o f New Y o rk and
th e r e s t o f A m erica u n le s s th e y a r e rem edied® To s o lv e t h e s e i n t e r
n a t io n a l problem s w h ich b e s e t u s , w e l l o rg a n iz e d and d e e p ly s e a r c h in g
e f f o r t s have been s e t i n m otion® N ever b e fo r e were th e p e a c e - lo v in g
n a tio n s o f th e e a r t h so e a r n e s t l y engaged i n c o o p e r a tiv e en d eav o r t o
p r e s e r v e th e p eace and t o l i b e r a t e th e w o rld from o b s t a c le s t o econ—
omic and p o l i t i c a l p r o g r e s s ® The U n ited S t a t e s has ta k e n th e le a d in
th e s e e f f o r t s , and h a s , o f n e c e s s i t y , sh o u ld e re d much o f th e e x p e n se ®
But s ta n d in g w it h us and a c t in g i n c o n c e r t w i t h u s a r e many o th e r p e o p le s
■ whose combined in f lu e n c e i n w o rld a f f a i r s re a c h e s f a r , and whose com
bined. s t r e n g t h s i g n i f i c a n t l y supplem ents our own®
Tie are strong in the- determination to exercise the responsibilities
of leadership which hare come to us. Vie must remain strong economically
as a nation, and we must keep our Government strong financially, if vie
are to carry out that determination with the greatest possible effect
iveness*
To remain strong we need to concentrate on long-range purposes some
times at the expense of immediate self-interests. Tie need to appraise
our domestic problems realistically, and to treat them with realistic
remedies, not with rhetoric*
The shirt—sleeved realism which produced the European Recovery
Program is the sort of realism I have in mind. In some quarters, such
a dov/n—'
to—earth approach to our difficulties is accepted as desirable
only when the individuals concerned are not personally affected. I
think it might be well to try to inspire sounder, stronger convictions
among those who are inclined to temporize with the domestic dangers we
face through our international problems, or to dismiss those dangers with
airy phrases.
I would like to cite what I regard as an important example of the
working of realism in national and international affairs. It is an
example in which you of New York, as a great world port, have a very
direct stake.
Early in the thirties, a man of vision, Secretary of State Hull,
recognized a compelling need for the lowering of trade barriers on a
reciprocal basis between this and other countries. Few of you need to
be reminded of the work of Cordell Hull in this direction.
VTiat we had done prior to that time about international trade was,
largely, to pass some tariff acts of unhappy memo by which departed .from
every semblance of realism aid gave almost free play to unrestrained
logrolling. There was little thought of long-range purpose behind these
acts.
Secretary Hull!s vision and practical statesmanship led to the
Reciprocal Trade Agreements Act of 193A. Sensibly, this act gave author
ity to the Secretary of State to negotiate reciprocal agreements with :
other nations which cleared the way for an accelerated flow of trade.
The act came up this year for the latest in a series of extensions
its life. President Truman of course urged that no change be made
ln
provisions. He emphatically pointed out that "the program is a
tested and practical mo-ans for achieving the benefits of expanding world
commerce for the United States and other countries and a continuing
evidence of the de termini ation of the United States to contribute its full
ox
- 5~
share to the reconstruction of a sound and growing vjorld economy as a
basis for enduring world peace,"
Secretary 'Marshall' further described the act as the most important
single factor in our long-range economic policy*
But in an atmosphere of secret hearings and discussions at Wash
ington9 the trade agreements program pas threatened wdth emasculation,
if not outright death* .Realism had taken flight*
As you know:, a "compromise" extension measure finally reached the
Presidents desk* This compromise whittled down the simple, direct,
and effective powers, which the original legislation had conferred* The
authority of the Administration was hedged about with new and limiting
procedures* Moreover, the terra of the extension was one year, where
previously it had typically been throe.
President Truman, his Administration, you who are. here tonight
and the whole of this country have deep concern in this mol ter* he
must begin now to prepare for another battle over the reciprocity pro
gram next year* This, I think, is part ef that responsibility to which
I earlier referred*
hhen Morid Trade Meek’vies observed this year, it had as its themes
"wrorld trade makes good neighbors*" This city has profited greatly
from the international neighborliness which wro have been able to achieve
in the past* It is your hope, certainly, to be better neighbors with
tho people of all nations in days to come*
As of today, a considerable portion of the "world is shut off not
only from peaceful commerce but even from free comunication with the
rest of us* There arc millions of people In such areas who at heart
must be much like ourselves. But they live, by decree of their rulers,
in a sort of, shadowed seclusion wrhcrc natural impulses to human as
sociation and cooperation are allowed to have little place*
Thus we find an impenetrable barrier surrounding that part of the
wrorld wdth which w/o want so much to cultivate normal relations* Me
are stopped from carrying on the age-old practice of barter and trade.
Through the exchange of our products, w/e promote not only friendship,
but the recovery of strength of those nations wdth w/hicK w/c trade* The
forward march of civilisation has been temporarily thwarted * It Is our
fervent hope that In the not distant future this curtain wall be lifted
and the natural course of understanding and neighborlincss once more be
open to all*
You Veterans hero tonight arc closer to the events of today than
any other of our people, hawing fouglit in the last war, and some even
— 6 «■*
in two m r s , to safeguard this country. You must have felt that you and
your families were entitled to the tranquility that should come with
victory,.
But tranquility and real peace are not always the immediate fruits
of victory. They may take time to cultivate.
You are rightly disturbed today by the atmosphere of anxiety that
hangs over the international scene, by'the fear that our economic and
financial stability may be disturbed, not only b;_ the forces of world
dissension^ but by unwise domestic measures.
No man, nor no few men, can promise you certain and lasting peace,
nor. absolute security from domestic difficulties, because no one man
can take the swops essential to maintain peace ana to maintain internal
equilibrium without she coope rati on and the help and the constant encour
agement of Veterans like yourselves,
Tith your help and with the help of the'people of this nation, there
need be no council of despair, for there arc men in your Government who
have the vision and the calm and the courage to steer our destinies
through the present troubled waters •— if you will support them.
0O0
T R E A S U R Y DEPARTMENT
F i s c a l S e r v ic e
STATUTORY DEBT LIMITATION
AS OF
Sep.-tember .3.0*...1.9^^8
WaShIngton, Q ct. JÎ; TO
Section 2 1 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 $ 2 7 5 ,0 0 0 ,0 0 0 ,0 0 0 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 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 vhich can still be
issued under this limitation:
Total face amount that may be outstanding at any one time
Outstanding September 30» 19^8
Obligations issued under Second Liberty Bond Act, as amended
Interest-bearing:
Treasury bills...............
# 12,627,952,000
Certificates of indebtedness....
22,293,7^5,000
Treasury notes... ..... .......
15.626,607.600
Bonds —
Treasury..... ............ .
112,011,0^2,600
Savings (current redemp.value)...
5^»776,2^7,620
Depositary....*........
332,9^5,500
Armed Forces Leave..........
507,253*025
Investment series.,.......
957.885.000
Special Fluids Certificates of indebtedness...
16,897*250,000
Treasury notes............. .
1^,323«652.500
Total interest-bearing.................. .... .
Matured, interest-ceased.............. .
Bearing no interest:
War savings stamps.......... .
Excess profits tax refund bonds....
Special notes of the United States:
Intemat’l Bank for Reconst,
and Development series.........
Internat'l Monetary Fund series..
Total........................... .
$275j000,000,000
168,585,373,7^5
3 1 ,220,902,500
250,354,600,845
24o,6iu,66o
55,55^,872 y
7,9^,308*/
65 , 785,000
1,153,000,000
Guaranteed obligations (not held by Treasury):
Interest-hearing:
Debentures: F.H.A........... .
Demand obligations: C.C.C. ........
Matured, interest-eeased....... . ».... ...
1,282,32^.180
25l*S77l566*6S5
13,986,986
32 .0^ 3,075
^ 6 ,030,061
^53,975
50,484,036
Grand total outstanding.
251.928.050,721
Balance face amount of obligations issuable under above authority....... .
Reconcilement with Statement of the Public Debt
(Daily Statement of the Uhited States Treasury, September’3 0 , 19^8
October 1, 1 9 Ï+S
Outstanding Total gross public debt....«..... ........ .......... ........... .
252 ,687,363 ,76^
Guaranteed obligations not ovned by the Treasury........ .......... .
50.484.03i
Total gross public debt and guaranteed obligations.... .... .... ...... .
252,737,847,800
Deduct - other outstanding public debt obligations not subject to debt limitation.......
809T7Q7.079
>251.928.050.721 </
r n
STATUTORY DEBT LIMITATION
AS OF SEPTEMBER 30. 1948
October 13« 194-8
Section 21 of the Second Liberty Bond Act, as amended, provides that the face
amount of obligations issued under authority of that Act, and the face amount of
obligations guaranteed as to principal and interest by the United States (except
such guaranteed obligations as may be held by the Secretary of the Treasury), ”shall
not exceed in the aggregate $275,000,000,000 outstanding at any one time. For 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 follovdng table shows the face amount of obligations outstanding and the
face amount which can still be issued under this limitation:
Total face amount that may be outstanding at any one time
$275,000,000,000
Outstanding September 3Q, 1948
Obligations issued under Second liberty Bond Act, as amended
Interest-bearing:
Treasury bills**.*...,....*, $ 12,627,952,000
Certificates of indebtedness,
22,293*765,000
Treasury notes **c,*c»* * ,. a*® 1.5,.626,607,600 | 5©^ £4# 32£,600
Bonds ■—
Tree miry .
a*e
. 112, Oil, 042,600
Savj.ngs (current rebemp,-value) 54, 776,247,620
Depositary....,.,...,.*..* .
332,945,500
Armed Forces Leave,,,,.,,,
507,253,025
Investment series,........
957.S85.000
168,585,373,745
Special Funds Certificates of indebtedness 16,897,250,000
Treasury notes*.,,..*.,.,,
14.323.652.500
31.220.902.500
Total interest-bearing..,..,.,.....,,..,. 250,354*600,845
Matured, i n t e r e s t - c e a s e d . 240,641,660
Bearing no interest:
War savings s t a m p s . . . 55*554,872
Excess profits tax refund bonds
7,984,308
Special notes of the United States:
Internat*l Bank for Reconst,
and Development series,, :
65,785,000
Intemat1! Monetary Fund sorios 1.153.000.000
1,282 .324 .ISO
TotaI,.... ................................
251*877,566,685
Guaranteed obligations (not held by Treasury):
Interest— bearing:
Debentures: F.H.A.........
Demand obligations: C.C.C*
Matured, interest— ceased..,.
13,986,986
32,043.075
46,030,061
..4.1,453^975
50.484.036
Grand total outstanding.... .
pa-lance face amount of obligations issuable under above authority*,,
2.51,928,050,721
23f071.949,279
Reconcilement with Statement of the Public Debt - September 30, 1948
(Daily Statement of the United States Trea.sury, October 1. 1948
Outstanding -
Total gross public debt***-•** * * * * * * * * «••*••*«•«••• •.*#•#•*>♦ *> «• - 252,687,363,764
Guaranteed obligations not owned by. the T r e a s u r y .....
50.484^036
. ^otal S^oss public debt and guaranteed obligations.....,,,..,,...
252,737,847,800
eauct - other outstanding public debt obligations
f
'
not subject to debt limitation........................ *.«w »'
809.797r079
$251.928.050.721
S-876
" 4;:
g
e s u m i»
"
£
7
7
wmmm
Tuesday, October 18, 1948»
Tito Secretary of the Treasury announced lest evening that the tendera fer
#900,000,000, or thereabouts, of 91-day Treasury bille to be dated October 14, 1W8, and
to stature January 15, 1949, which were offered October 8, 1949, were opened at the Federal
Reserve Banks on October 11*
The detalla of this issue are as follows:
Total applied for - #1,415,993 »000
**•1 U M f M
902,15«,000
Average price
(Inolad*. »«8,948,000 eat.red on a noncompetitive basis and accepted in f u U at
ä
Ä
average priea shown below)
- 99.717/ Equivalent rate of discount appro*, l . n t f per asma
Bange of aoeepted coiapetitive bids:
J&dfc
lew
- 99.788 Equivalent rate of discount approx* 1.100$ per annus
* 99.717
*
«
*
*
*
1.19CÄ «
»
(94 percent of the amount bid for at tbs low pries was aoeepted)
Federal Reserve
District
Total
Applied for
Boston
Hew York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
Ioni*
Minneapolis
Kansas City
Dallas
5aa Francisco
*
it.
« m
Total
Accepted
10,480,000
1, 1El,776,000
13,913,000
24,795,000
U , 700,000
4,993,000
84,478,000
4,005,000
8,846,000
28,544,000
18,«92,000
82.428.000
1 10,370,000
497,258,000
3,801,000
18,095,000
11,880,000
4,898,000
33,784,000
8,877,000
7,808,000
87,273,000
15,644,000
«8,820.000
a, 413,925,000
»90S,18«,000
TREASURY DEPARTMENT
WASHINGTON,
In fo r m a t io n S e r v i c e
REEEASE, M O W I N G NEWSPAPEflS,
Tuesday» October 12» 1948*
No* S-877
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
October 14, 1948, and to mature January 13, 1949, which were offered October 8,
1948, were opened at the Federal Reserve Banks on October 11*
The details of this issue are as follows:
Total applied for - $1,413,923,000
Total accepted
902,136,000 (includes $63,343,000 entered on a non
competitive basis and accepted in full
at the average price shown below)
Average price
- 99*717/ Equivalent rate of discount approx* 1*118$
per annum
Range of accepted competitive bids;
High
4 99*722 Equivalait rate of discount approx* 1*100$
per annum
- 99*717 Equivalent rate of discount approx* 1*120$
per annum
Low
(86 percent of the amount bid for at the low price was accepted)
Federal Reserve
District
Total
Applied for
Total
Accepted
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St* Louis
Minneapolis
Kansas City
Dallas
San Francisco
$
10,650,000
1,121,776,000
13,815,000
24,795,000
11,700,000
4,893,000
84,478,000
4, 005,000
8,345,000
28*346,000
18,692,000
82,428,000
$ 10,370,000
697,232,000
3,801,000
18-095,000
11, 280,000
4,893,000
33,726,000
3,877,000
7,805,000
27,273,000
15,564,000
68,220,000
41 ,413 ,923,000
$902,136,000
TOTAL
0 O0
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 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;
1 Established $ Total imports
^Established*
Imports
Country of Origin ! <r0TAL QUOTA I
2 0 , 1948,j 33-1/3$ ofjSept. 2 0 , 19 4 8 ,
;
I toQet* 2| I 9I18 ITotal Quota! to Oct. 2, I9l|j}l (1)
United Kingdom....
Canada............
France............
British India.....
Netherlands.......
Switzerland..... ..
Belgium...........
J apan.............
China.............
Egypt.............
Cuba..............
Germany...........
Italy.............
Totals
2j
4,323,457
239,690
227,420 j
69,627
68,240
44,388 j
38,559
341,535
17,322
8,135
6,544 j
76,329
21,263
5,482,509
1,441,152
75,807
806
S
'
Ü
25,443
7,088
806
Included in total imports, column 2.
-0O0-
_
5
f
' /
t
-
22,747
14,796
12,853
1,599,886
WL
IMMEDIATE RELEASE
October & , 19U8
*7
<_
- 1 -
?
f t
>3
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 ,%nABi§iv|^_, amended, for the period September 20,
1946, to October 2
1 9 4 8 are as fallows:
COTTON (other than linters)
(In pounds)
Country of
Origin
Under 1 -!L/8” other
1 - 1 / 8” or more
than roü{*h or harsh
but less than
unde] 3/4"
' ' 1 - 1 1 / 16 ” U
Established Imports Sept. Imports Sept.
Quota
20, 1948, to
20, 1948, to
Oct. 2• 19U8
Oct. 2, 191*8
Egypt and the
Anglo-Egyptian
Sudan... *...... .
783,816
Peru........ .llll
2^7,952
British India.... 2,003,483
China......*..... 1,370,791
Mexico........... 8,883>259
Brazil...........
618,723
Union of Soviet
Socialist Republies.........
475,124
Argentina........
5,203
Haiti............
•237
Ecuador..........
9,333
Honduras.........
752
Paraguay.........
871
Colombia.........
124
Iraq.............
195
British East' '
Africa...........
2,240
N et her land s *East'
Indies.....•III..
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
Algeria and Tunisia
-
14 ,516,882
-
Less than 3/4H
harsh or rough 5/
Imports Sept. 20,
1948 , to October
2 , 191*8 .
-
21*7,952
251,958
-
-
h,139,235
-
200,912
-
281 ,071*
—
k,869,173
¿¿5,656,1*20
"5517^8"
1/ Other than Barbados, Bermuda, Jamaica, Trinidad, and Tobago.
2f Other than Gold Coast and Nigeria.
3/ Other than Algeria, Tunisia, and Madagascar.
4/^^aâddc^fâ; Quota of45,656,420.pounds established by the Presidents Proclamation
5/ Established Quota - 70,000,000.
No.2351 was filled on September 20, 191*8.
TREASURY DEPARTMENT
Washington 25
»MEDIATE RELEASE
Wednesday. October 13« 194-8
No* S—878
The Bureau of Customs announced today that preliminary data on imports of
cotton and. cotton -waste chargeable to the quotas established by the Presidents
proclamation of September 5 , 1939, as amended, for the period September 20, 1948,
to October 2, 1948, inclusive, are as follows:
COTTON (other than llnters)
(In pounds)
Country of
Origin
.
s
Under 1-1/8» other
:
than rough. or harsh
:
under 3/4n
:Established : Imports Sept*
:
Quota
:20, 1948 to
%
%
%
% Oct. 2. 1948..
Egypt and the AngloEgyptian Sudan******
783,816
247,952
Peru, ,*******4*«t>«oi
British India¿,*4*** 2^003,483
China *¿¿**4*4*** 4*,4. 1 ,370,791
Mexico*•*••*••
8,883,259
Brazil........
618,723
Union of Soviet
Socialist Republics*
475,124
Argentina
5,203
Halt i ,.*****•••«•,*«*
237
9,333
Ecuador*.»<,**e««B»• •
Honduras *.... .
752
Paraguay, ....,*,,.**
871
Colombia **.■***.**,.,
124
Iraq ........... .
195
British East Africa*
2,240
Netherlands East
71,388
Indies ,***.*,•*'.*.;*.
—
Barbados............
Other British
West Indies 1/......
21,321
Nigeria ,*,.*..*■*.,*,
5,377
Other British
West Afr i c a ¿ / ******
16,004
Other French
Africa 3/***...**♦,*
689
Algeria and Tunisia,
—
14,516,882
1/
2/
t 1-1/8» or mores Less than 3/4"
t but less than : harsh or rough 5/
t 1-11/16» 4/
k
z Imports Sept* : Imports Sept, 20,
s 20, 1948 to
: 1948, to October
s Oct„ 2. 1948. s 2. 1948.
-
2 5 1 ,95s
4,139,235
200,912
-
247,952
U
km
—
281,074
4,869,173
45,656,420
251,958
Other than Barbados, Bermuda, Jamaica, Trinidad, and Tobago*
Other than Gold Coast and Nigeria c
Other than Algeria, Tunisia, and Madagascar*
¿J The quota of 45,850,420 pounds established by the Presidents Proclamation
No* 2351 was filled on September 20, 1948*
J§/ Established Quota - 70,000,000*
- 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 HASTE, STIVER TASTE ^ 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, Germary, and Italy:
: Established rlmports Sept« 20,
Established 5 Total imports
Country of Origin : TOTAL QUOTA s Sept« 20, 1948, t 33-1/3# of :1948, to Oct« 2,
4»
* to Oct, 2, 194§ : Total Quota Î1948 1 /
United Kingdom«,«*,
Canada«•««««•«««••*
France «•.,•«,•»••••
British India«,,,,,
Netherlands
Switzerland 0,e ,,,
Belgium«
«Japan», ,«« a c« 9
China
Egypt,,....
Cuba
Germany
I t a l y ,, 0«• •»••••
Totals
1/
1,441,152
—
75,807
A,323,457
239,690
227,420
69,627
68,240
¿4,388
38,559
341,535
17,322
8,135
6,544
76,329
21,263
—
806
22,747
14,796
12,853
—
—
—
—
25,443
7,088
806
5,482,509
1,599,886
Included in total imports, column 2«
- o 0 o
m
S-87S
f77
COTTON WASTES
(In pounds)
COTTON CAEN STRIPS made from cotton having a staple of less than 1-3/16 inches
in length, COMBER WASTE, LAP WASTE, SLIVER WASTE, AND BOVINO WASTE, WHBTHEB
OB NOT MANUFACTURED OE 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?
1 Established * ^otal imports
{Established! djo^ortlb
Country of Origin : TOTAL QUOTA I SePt * 20, 1947, j 33-1/3# of \ Sept. 20, 1947,
•____
i to Sept» 1 9 «1 9 ^8 Total Quota!to Sept. 19, l!&8
United Kingdom....
Canada.......... ,.
France............
British India.....
Netherlands.......
Switzerland.......
Belgium...........
J apan.............
China.............
Egypt.............
Cuba...............
Germany...........
Italy......... .
Totals
if
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
25,172
175,266
69,627
5,482,509
270,065
-
I
75,807
-
!
22,747 1
14,796 j
12,853
Ü
p
19,703
— ■
—
— I
|
r
25,443
7,088
Included in total imports, column 2.
7 7 ?-
j
j
j§§•
1
-oOo-
5
1,441,152
[ 1,599,886
I
!
f
î
19,703 |
(1)
iUfP
g * IMMEDIATE RELEASE
OCTOBER $?, 19U8
-
>3
l -
-5
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^^^y^i^ as amended, for the period September 20,
1947, to September 19,1948?. are as*follows:
COTTON (other than linters)
(In pounds)
Country of
Origin
Under 1-1/8” other
than rough or harsh
under 3/4”
Established Imports Sept.
Quota
20, 1947, to
Sent. 19, 19l*8
Egypt and the
Anglo-Egyptian
Sudani,
\
783>816
Peru.....,....:;:
247,952
British I n d i a 2 }003,483
China.. . . . . . . .
1,370,791
M e x i c o . 8,883^259
Brazil...........
618,723
Union of Soviet
Social! s t R epubl
i
c
s
475,124
Argentina.:.,::::
5,203
H a i t i :::
•237
Ecuador. 9 , 3 3 3
H o n d u r a s 752
P a r a g u a y . 871
Colombia .
1 24
Iraq...........
195
British East’
Africa.V.........
2 ,240
Netherlands *East’
Indies....:.;..:.
71,388
Barbados.........
Other British’
West Indies l/...
21^321
Nigeria...... .
5,377
Other British
West Africa 2/...
16,004
Other French
Africa 3 /........
689
Algeria and Tunisia
-
1-1/8” or more
but less than
1-11/16” U
Imports Sept.
20, 1947, to
Sfeg.tt 19, 191*8
Imports Sept. 20,
1947, to Sept#
19, 191*8
1*9,081*,780) /, ,
21*7,952
271,932
2,079,318)
1*1*,252,251*
8,883,259
618,723
1*75,121*
177,91*9
14,516,882
10,1*96,990
5l,3i*2,Oi*7(a)
Other than Barbados/ Bermuda, Jamaica, Trinidad) anà Tobago.
Other than Gold Coast and Nigeria, i
3/ Other than Algeria, Tunisia, and Madagascar.
V
Less than 3/4m
harsh or rough 5/
1*4,252,251*
3he 2^°^ of ^5,656,1120 pounds established by the President's Proclamation
No. 2351 was filled on September 22, 19l*7.
4/a These figures include 5,510,308 pounds of Egyptian and 175,319 pounds of
°otto" oharged durin8 the period July 20 to September 19, 191,8, to the
additional quota provided in the President's Proclamation No. 2800
V Established quota ** 70,000,000
TREASURY DEPARTMENT
Washington 25
IMMEDIATE RELEASE
Wednesday, October 13» 194-8
No# S-879
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 September 19, 1948, inclusive are as follows:
COTTON (other than linters)
(In pounds)
Country of
Origin
Under l-l/S” other
”7
than rough or harsh
:
under 3/4,f
:
Established:Imports Sept* :
Quota
:20, 1947, to :
gSept* 19» 1948:
Egypt and the
Anglo-Egyptian
Sudan •••###*.*.••*
783,816
Peru##•........M .
247,952
British India**#
2,003,483
China# ••. ..... . *. 1,370,791
Mexico *..... .#*..
8,883,259
Brazil............
618,723
Union of Soviet
Socialist RepubI
C
S
#
•i* •
475,124
Argentina *...... .
5,203
Haiti
237
Ecuador •*•••«•••• *
9,333
Honduras ##•.••.••.
752
Paraguay*.........
871
Calombia...... .. * 124
Iraq##....#..*....
195
British East
Africa#.#....#....
2,240
Netherlands East
Indies #••#..... .
71,388
—
Barbados *-*........
Other British
West Indies 1/***#
21,321
Nigeria....,......
5,377
Other British
West Africa 2/•«* *
16,004
Other French
Africa 3/
689
Algeria and Tunisia
14,516,882
247,952
271,932
*•
8,883,259
618,723
475,124
10,496,990
1-1/8” or more: Less than 3/4 "
but less tlmn :harsh or
l~ll/l6n 4/
« rough ¿1
Imports Sept* :Imports Sept* 20,
20, 1947, to *1947, to Sept#
Sept * 19« 1948: 19# 1948
49,084,780)
2,079,318) v4a)
44,252,254
177,949
51,342,047(a)
44,252,254
1/ Other than Barbados, Bermuda, Jamaica, Trinidad, and Tobago.
2/ Other than Gold Coast and Nigeria#
3/ Other than Algeria, Tunisia, and Madagascar.
4/ The quota of 45,656,420 pounds established by the President*s Proclamation
No# 2351 was filled on September 22, 1947••
4/a These figures include 5,510,308 pounds of Egyptian and 175,319 pounds of
V
Peruvian cotton charged during the period July 20 to September 19, 1948,
, to the additional quota provided in the president *s Proclamation No#- 2800•>
5/ Established quota - 70,000,000*
•** 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 YiiASTE,
WHETHER OR NOT MANUFACTURED OR OTHERWISE ADVANCED IN VALUE: Provided,
however, that not more than 33—1/3 percent of the quotas 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
Italyi
*
jEstablished:
Imports
•Total imports
Country of Origin :ESTABLISHED :Sept. 20, 1947, : 33-1/3$ ofjSept* 20,1947
TOTAL QUOTA :to Sept* 19*1948 •Total Quota:to Sept* 19,1948
1
United Kingdom**.*•
Canada* #'**••****•*•
France ** *»* •**• ••* *
British India******
Netherlands . A . . A *
Switzerland *••*•••*
Belgium* ••*•*•**•»*
Japan****#***»•«•'**
China••**•****••*•*
Egypt *****•*’
•*••* * *
Cuba ***•»*••****• •*
Germany*** i*•••»•*.
Italy **•• **•k% *»*«•
Totals
4*323,457
239,690
227,420
69,627
68,240
44,388
38,559
341,535
17*322
8,135
6*544
25*172
175,266
69,627
75*807
.+*
'■<•40*
-
*
25,443
7*088
21,263
270,065
1/ Included in total imports, Column 2*
—0O0—
S-879
19,703
«ite
22,747
14,796
12,853
76,329
5,482,509
1 ,¿¿1,15 2
1,599,386
19*703
m R
IMMEDIATE RELEASE
I 9 I48______
r3
S
—
$
$
6
October
^
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 19U6, from January 1,* 19 )4.8 * to October 2, 19 )48*
inclusive* as follows:
Products of
:
Philippine Islands:
Buttons
Established Quota :
Quantity
:
•
•
85>0,Q00
Unit of
Quantity
180,219
839,222
200*000,000
Number
Coconut Oil
1448,000*000
Po\md
Cordage
6,000,000
tt
Rice
1 ,0140,000
11
Tobacco
Imports as of
October 2* 19)48
Gross
Cigars
Sugars, refined )
unrefined)
:
:
•
•
60,088,506
1,71*7,10*8
-
1,90)4*000,000
ti
U,1*99,371*
Uli*,926,51*8
6,^00,000
n
203,278
TEEASUEI
department
Washington
IMMEDIATE RELEASE,
Wednesday^ October 13, 1948«
No0 S-880
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 1946, from January 1, 1948, to October 2, 1948,
inclusive, as follows:
Products of t
Philippine Islands:
•
Buttons
Established Quota:
Quantity
:
•
•
850,000
Unit of
Quantity
180,219
839,222
200, 000, 000
Number
Coconut Oil
448,000,000
Pound
Cordage
6,000,000
w
Rice
1,040,000
n
1,904*000*000
(i
6,500,000
tt
Tobacco
oO©
Imports as of
October 2, 1948
Gross
Cigars
Sugars, refined )
unrefined)
:
:
*
*
60,088,506
1,747,448
—
A, 499,374
414,926,548
203,278
jgst IMMEDIATE RELEASE,
October TäL% 19U8_____
/7
The Bureau of Customs announced today preliminary figures^ showing the
quantities of wheat and wheat flour entered, or withdrawn from warehouse, for
consumption under the import quotas established in the President's proclamation
of May 28,, 1941, as modified by the President's proclamations of April 13, 1943,
and April 29, 1943, for the 12 months commencing May 29, 1940, as follows:
Wheat
Country
of
Origin
Imports
Established :
Quota
• :May 29, 1940, to
:October 2f 19k8
(Bushels)
(Bushels)
Canada
795,000
China
~ 3s
Hungary
%
long Kong
~
Japan
united Kingdom
100
Australia
—
Germany
100
4yria
100
lew Zealand
Chile
Netherlands
100
Argentina
2,000
'taly
100
)uba
’ranee
1,000
.-reece
Mexico
100
«->
‘anama
ruguay
n .
:■
oland and Danzig
;weden
—
Tugoslavia
forway
—
Canary Islands
—
lumania
1,000
Guatemala
100
100
Brazil
:nion of Soviet
Socialist Republics
100
Belgium
100
800,000
72,073
—
|— v
—
-
■
-
-
-
,
: Wheat flour, semolina,
:
crushed or cracked
:
wheat, and similar
:
wheat nroducts
Imports
:Established
:
Quota
May 29, 1948,
to October 2, 1 9 W
(Pounds) *
(Pounds)
3,815,000
24,000
13,000
13,000
8,000
75,000
1,000
5,000
5,000
1,000
1,000
1,000
14,000
2,000
12,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
-
-
1§1
-
-
-
-
-
~oQo-
■-0m
•
£*
mm.-'mm
4,000,000
..
**'
*■»
•• .
—
—
•»r
—
—
—
—
■ —
—
—
—
**
—
72,073
179,078
160
r j 9 , 2 3 E
-
TREASURY DEPARTMENT
Washington 25
IMMEDIATE RELEASE ,
Wednesday. October 13. 19AS.
N°« S~881
The Bureau of Customs announced today preliminary figures showing the quanti
ties 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 Presidents proclamations of April 13, 1942 and April 29,
194-3, for the 12 months commencing May 29, 194$, as follows*
5
*
Wheat flour, semolina,
*
■
.
t
crushed or cracked
*
iea
2
y;heat, and similar
Country
:
______________________________*_____wheat products
_______
of
t Established5
Imports
t Established *
Imports
Origin
s
Quota
: May 29, 194-8, to :
Quota ;May 29, 194-8 to
_______________ *
t October 2. 194.8 *_____________ s October 2. 1948
(Pounds)
(Pounds)
(Bushels)
(Bushels)
Canada
795,000
China
Hungary
Hong Kong
Japan
100
United Kingdom
—
Australia
100
Germany
Syria
100 .
—
New Zealand
—
Chile
100
Netherlands
Argentina
2,000
Italy
100
—
Cuba
France
1,000
—
Greece
Mexico
100
Panama
—
Uruguay
Poland and Danzig
—
Sweden
Yugoslavia
Norway
Canary Islands
Rumania
1,000
Guatemala
100
100
Brazil
Union of Soviet
Socialist Republics
100
100
Belgium
800,000
72,073
—
—
-
—
—
—
—
—
—
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
-, .
179,078
160
-f
—
—
-,
—
-
—
—
-,
—
-, ;
—
—
—
*<—•
—
—
—
72,073
4,000,000
179,238
—
—
—
-
—
—
— o 0 o-
—
IMMEDIATE RELEASE
p October 33, 19U8
y
P>
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 October 2, I9I48 , inclusive, as follows:
m
m
Commodity
:
e
•
Period and Quantity
: Unit
:Imports as of
: of
:October 2,
:Quantity:
I9I4.8
Whole milk, fresh or
sour
Calendar year
3,000,000
Gallon
6,280
Cream, fresh or sour
Calendar year
1,500,000
Gallon
1,216
Butter
Quota ineffective for the
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
2U,930,188
Pound
19,255,359
1 2 months from 1 5 0 ,0 0 0 ,0 0 0
Sept*15, I9I48
60,000,000
Pound
Pound
258,600
15,170,551*
May 22 - Dec*33, 3,333,333
19U8
Pound
31*2,711
Due to a provision of the Presidents proclamation No* 2769 of January 30,
19U8, in which the entry of a specified quantity of Cuban filler tobacco,
undtemraed 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* 17,025,51^ pounds of such Cuban
tobacco were imported for consumption during the period January 1 to October 2,
1 9I+8 , inclusive*
TREASURY DEPARTMENT
Washington
IMMEDIATE RELEASE,
Wednesday, October 13, 194-8»
No* S-882
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 October 2, 1948, inclusive, as follows:
Commodity
•
•
:
*
•
Period and Quantity
: Unit :Imports as of
:
of
:October 2,
:Quantity:
1948
Whole milk, fresh or
sour
Calendar year
: 3, 0C)0,000
Gallon
6,280
Cream, fresh or sour
Calendar year
1,500,000
Gallon
1,216
Butter
Quota ineffective for the
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
12 months from
Sept* 15, 1948
Walnuts
May 22~Dec« 31p
1948
Pound v
19 ,255,359
150,000,000
60,000,000
Pound
Pound
258,600
15,170,554
3,333,333
Pound
342,711
24,930,188
Due to a provision of the Presidentts proclamation No* 2769 of January 30,
1948, in which the entry of a specified quantity of Cuban filler tobacco,
unstemned 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« 17,025,544 pounds of such Cuban
tobacco were imported for consumption during the period January 1 to October 2,
1948, inclusive*
0 O0
VH
r*f
Ï iO
t$
October S$
tO M . u s m x t
Th« faXlovlag jsarkot tronsacticms w m m m é » taring the m a t h of
September, 191*8, io direct «ad guaranteed »««iritle» et the (temrmmt
toit treasury irmmtaamt m û other account*»
Fard*»*©* *•*#**»**#**•**##**** $ r t Soo ,ooo
•i**««*»*#*
8tt«W
M
Purchases
íT,17i»,000
(Sßd.) s» F.
Gerard!
Chief, Bieisioa of lav»«tissât»
LO
Wisocarrersio/SAÔ
TREASURY DEPARTMENT
Information Service
RELEASE, H O M I N G PAPERS,
Friday, October 15, 1948#
Wa s h i n g t o n , d . c .
N o * S-883
During the month of September, 1948, market trans
actions in direct and guaranteed securities of the
Government for Treasury investment and other accounts
resulted in net purchases of 47,174,000, Secretary
Snyder announced today#
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 U2
and 117 (a) (1) of the Internal Revenue Code* as amended by Section lip of the
Revenue Act of 19^1* the amount of discount at which bills issued her;
eunder 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 betY/een 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
-
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 acceotance or re lection 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 October 21, 1948
, in cash or other immediately avail-
able funds or in a like face amount of Treasury bills maturing October 21, 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 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
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Friday, October 15, 1948.
fe:
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 October 21, 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
wall mature January SO, 1949
interest.
October 21, 1948_____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
closing hour, two o ’clock p.m., Eastern Standard time, Monday, October 18, 1948
"""""" '1'
ixj
Tenders will not be received at the Treasury Department, Washington,
...
Each
tender must be for an even multiple of $1,000, and in the ease 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
theref or
Tenders m i l 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, .MOOTING NEWSPAPERS,
Friday. October 15, 19A8o
WASHINGTON, D .C .
.
No« S—884,; ,
The Secretary of the Treasury, by this public notice, invites tenders
for $900,000,000«, or thereabouts,, of 91-day Treasury- bills, for cash and
in exchange for Treasury bills maturing October 21, 194$, to be issued on
a discount basis under competitive and non—competitive bidding as hereinafter
provided«» The bills of this series will be dated October 21, 1948, and
will mature January:20, 1949, when the face amountwill 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 Standard time, Monday, October IB
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
by made by the Secretary of the Treasury of the amount and price, range of
accepted bids* Those submitting tenders will be advised of the a cceptance
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 pjrice 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 Banks on
October 21, 1948, in cash or other immediately available funds or in a like
face amount of Treasury bills maturing October 21, 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
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 billb shall be subject to
estate, inheritance, gift or other excise taxesj 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 tide
United States, or b y any local taxing authority# Fdr 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 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 pfice 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 terns 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
P8Q&Q&BD RELEASE eg-M EMORANDUM TO THE V M B&
/
j
3-
m
-/ f ■
¿'T
Secretary Snyder today presented the Distinguished Service
Award of the Treasury Department to Irving Geist, New York City,
in recognition of services rendered the Department in connection
with the Savings Bond program«
Mr* Geist, a garment manufacturer with offices at 1372
Broadway, actively participated as a volunteer salesman during
the eight Savings Bond drives of the war and post-war period*.
The efforts put forth by Mr* Geist and those ’who worked with
him resulted in the sale of millions of dollars in bonds during
these drives*
The citation presented to Mr. Geist by Secretary Snyder is
inscribed as follows j "To Irving Geist, for leadership in
building security for the people aid the Nation through United
States Savings Bonds•"
0O0
TREASURY DEPARTMENT
Information Service
WASHINGTON, D .C .
IMMEDIATE RELEASE,
Friday, October 15. 1948«
Ho,
S<-S85
Secretary Snyder today presented the Distinguished Service Award
of the Treasury Department to Irving Geist,. New York City* in recognition
of services rendered the Department in connection with the Savings Bond
program,
Mr. Geist, a garment manufacturer with offices at 1372 Broadway,
actively participated as a volunteer salesman during the eight Savings
Bond drives of the war and post-war periods.
The efforts put forth
by Mr® Geist and those who worked with him resulted in the sale of
millions of dollars in bonds during these drives.
The citation presented to Mr. Gpist by Secretary Snyder is inscribed
as follows:
"To Irving Geist, for leadership in building security for
the people and the Nation through United States Savings Bonds.”
oOo
TREASURE DEPARTMENT
Washington
(The following, address, by Secretary Snyder before the National
Convention of the American Legion, at the Einnér Key Auditorium,
Miami, Fla©, is scheduled for delivery at 2:00 p«mV'E»'S0T«
Wednesday» October 20t 1948* and js for release at that time* )
YOUR STAKE IN FEDERAL FINANCE
You members of the American Legion, in more than one great war,
have donned uniforms and shouldered arms to preserve the integrity of
this country* Through your energy, patriotism, courage and selflessness,
you have proven your firm determination to perpetuate the rights, privi
leges and obligations inherent in, our democracy.
We all shared the same hope and conviction «— that with the end of
hostilities, we would be able to reestablish ourselves in the civic,
business, and religious life of our communities and devote ourselves to
leading peaceful, constructive lives in a world that is free from fear«»
Our efforts and our hopes have been tempered to the extent that we
are still engaged in a struggle for economic, social, aid political
peace«, Whenever despotism and tyranny, regardless of their former names,
seek to conquer the American people, we respond in a mighty force to
protect and defend our heritage Of democracy« The continuing struggle
for democratic principles will always fire the hearts of resolute men.
Most of you have now returned to civilian life, only to find as
private citizens, you have had to continue the job you believed completed
at the time of demobilization©
You have had to continue the fight for
those same aims, hopes, and principles ,,essential to the progress and wel
fare of our country*
A
The American Legion truly represents a great cross-section of
America today© It can be well termed an outstanding Honor Group, for
to become eligible for membership, you must have served and defended
this nation in time of war® I think that I might well stress that the
American Legion by precept and.example-has through its various programs,
done much to aid this country.in both peace and war© You shouldered
great responsibility as an organization iq sponsoring the sale of war
bondsj your aid was of tremendous value in making the draft act work;
the recreational facilities which you provided in cities adjoining
military camps greatly eased the social problem of the serviceman
during the war© In peacetime,, you have continued that fine work through.,
the programs you are providing for Veterans in the Army, Navy, and
Veterans* hospitals throughout the nation«» You have stood firm in your
strong support of the Presidents U.M.T© program and have given like
S-886
•• 2 **•
support to the European Recovery Program© I could continue at great
length to point out the many worthy activities of this great organ
isation© But I shall mention only one more, one which represents
again the searching effort- of the Legion continually to serve our
country* I refer to that magnificent program of sponsoring sandlot
baseball contests in an effort to minimize juvenile delinquency©
It was not my purpose today to come here to tell you of the fine
qualities of the Legion, but I could not forego the satisfaction at
this time of recognizing and paying tribute to some of your activities©
When we realize that 41 percent of all of the men of the nation between
20 and 65 years of age are war veterans, we must fully appreciate the
great potential strength and influence of the American Legion, for each
of these 41 percent is eligible for membership© Translate this into
your power for good for your country through an earnest effort to see
that all eligible voters exercise their right of franchise in the coming
national election, and we can well gauge the measure of your influence
upon our national affairs#
From your record in time of war and from a history of your
activities in time of peace, the American Legion has demonstrated the
earnest purpose of making the United States safe for democracy and
unsafe for hypocrisy*
The American Legion is an organization which at all times is
deeply concerned with the trend of national affairs as a matter of
preeminent importance* Therefore, in addressing you servicemen and
women .1 feel a special obligation to discuss frankly the finances of
the country© For you well know, that only ,so long as this country
remains strong and sound financially, can its freedom be assured*
I shall try to discuss some of the fundamentals of your stake in
Federal finance without resorting to figures, or at least with only a
minimum of figures* For the chief problems of Federal finance today
have their solution not in figures, but in the exercise of just plain
common sense©
The particular duty of the Treasury is to maintain, unquestioned,
the credit of the United States and the integrity of our dollar© In
order to do this, we must pursue a policy of living within our means,
reducing our public obligations, and adjusting our tax load equitably
while at the same time properly providing funds for our defense©
Today, I want to talk to you mainly about the national debt of
this nation© Not too many years ago, Federal fiscal policy was a matter
far removed from the concern of the average man* But present day con«
ditions have made it imperative that.each and every one of us has a
working knowledge of the nation*s finances*
In the long run Government fiscal policy is what you, as voters,
decree® In its broadest sense, it stems from the'services and pro
tection you demand from your Government® For, after ail, the Governmeit Administration can spend only the funds provided through ap
propriations made by your representatives- in-Congress®
Fiscal policy rests on such factors as what and how you spend,
and what and how you save# It is determined by what you do to keep
prices.at a reasonable level, on how much you invest in Government
bonds and private securities, what you pay in t&xes, and on your
concept of our economy«»
* • ’*
This Government faces obligations for the .current fiscal year
which will take 4/5 of every budget dollar to meet four pro ad classi
fications of expenses# National defense in. one Of these® International
payments, chiefly for necessary foreign aid, is another« Funds for
veterans* administration comprise a third, and the fourth covers inter
est on the public d ebt and a variety of refunds, principally of overpaid
taxes* .
The remaining 1/5 of each budget dollar covers a lengthy list of
Government costs, such as those for social welfare, health and security;
outlays for housing, education and agriculture; transportation and
communication needs; the conservation and development of natural
resources; programs'affecting commerce, industry and labor, and ex
penditures for actual government operations#
These proportionate applications of the Federal budget dollar of
today bear little resemblance to those costs of Government of a
decade or more ago# But we live in a changing world# You Legionnaires,
especially those who saw service in-both World liars, are well aware of
this fact# Our private lives, our whole social order, as well as the
responsibilities of our Government, have been altered greatly in two
generations# This alteration has been brought about by the tremendous
impact of world events#
;
The Federal budget picture for the year is not encouraging# To
put it briefly,-we are in the red again# The Bureau of the Budget
estimates that the Government faces an operating deficit for this
fiscal year of. a billion and a half dollars# That can mean but one
thing# lie shall not be able to go on reducing the public debt during
the fiscal year 1949o In this fact lies a matter of pertinent inter
est to you#
I do not believe the average American needs to be a student of
economies or of finance to realize that we ¡should pare down the public
debt especially in these times of widespread prosperity#
, -The public debt' represents the sum total of money on loan to tte
.Government* Many of the; loans are from individual citizens* Others
are,from insurance companies, savings ‘institutions, business and
industrial corporations,■ and other such institutions# Another large
block is held.by the commercial banking system* As of today, all these
loans add up to about $>252 billion*
This is simply too large a figure for any of us to visualize as
a sum of money« But, if we:mate a f ew'■•comparisons, the figure begins
to have some meaning*
v«
y'
Back in 194G* at the start of the defense program, the public debt
was relatively small* It was smalle r in terms of.money and it was
smaller in relation to the whole business of the country# At that
time it totaled about $>50 billion#
In the year 1940* the value of all the goods and services produced
by .this nation would have amounted to approximately $100 billion or
twice the size of the national debt# But today, even with over 60
million people employed, with business at unprecedented levels, and
:with record peacetime production, it would take a full year for our
national production to reach the figure of our present national debt*
c
point I am making doesn5t need bolstering with further
figures* .Our debt is tremendous* And you, as American citizens, have
made a very substantial investment in your ''.Government* The wise
management of the funds which you have entrusted to the Government is,
consequently, of. direct interest to every American citizen*
.*> lou, as individual citizens, own directly $67 billion of savings
bonds and other public debt issues* But, the average citizen actually
has a far larger stake in the Government than his own personal holdings
in;Government bonds*
■ '
Most of us have insurance policies, checking accounts, savings
accounts, or some other evidence that we have invested a part of our
funds in' some financial institution*. These institutions, must, in
turn, keep this money invested. And all of them — the banks, the
insurance companies, the savings and loan associations, and others
have today a far larger proportion of thê.ir own funds invested in
Government securities than they had before the war*
For example, more than half of the investments of commercial
banks are, at the present time, invested in Federal.securities* This
is about half again as large as the g eneral proportion eight or-ten
years ago# The' same is true for all other large organizations with
substantial funds t o invest*' : ; -/*
- 5 -
As a result, every one of you is personally affected by the
Governments fiscal policy«
Let me* touch briefly here on the Treasury’s debt management
policies since the total outstanding obligations of the Government
reached their peak in February, 1946* It will interest you, as
citizens and as investors in your Government, to look behind the *
scenes for a moment to see how we went about cutting down the amount
owed by the Government as.soon as the tapering off of war costs made
it possible©
'•'
;
First, however, let me call to your attention,the wartime policy
of keeping interest rates on Government obligations low* As conw
pared with rates during World War I, this is benefitting taxpayers to
the extent of $5 billion a year at. the present time©
But I started out to talk a bout debt reduction* The sharp *
decline in military and related expenditures, coupled with, the smooth
and rapid reconversion from wartime to peacetime activities throughout
the country,-meant that Government revenues remained high in relation
to Federal expenditures©
— ...
Consequently, in 1946, the Treasury was able to apply t©
repayment of the public debt much of the large cash balance with
which it ended the. calendar year 1945® This, plus the application ©
of the Government surplus, has cut the debt by more than $27 billion,
an achievement which is of benefit to us all© It is an achievement
made possible by the prosperity which has been maintained in this
country since the war©
i At this present time, however, the Government has less money
coming in than it must pay out* There is no mystery about the causes
of this condition* We face increased expenditures for defense and for
foreign aid, brought about by the tense international situation© But
in the face of this situation, and with incomes higher than at any
time in our history — * incomes which are competing for more goods
than even this great country can produce under conditions of full
employment —*r the Congress saw fit to reduce taxes® I do not person~
ally believe that such an approach will help to solve our domestic
economic problems* For the Government’s estimated operating deficit
of $1 - 1/2 billion which will result, contrasts with an operating
surplus of $8 - 1/2 billion 3a st year, which was applied to reduce
the debt®
It goes without saying that w,e cannot hold back on national
defense at a time when the international outlook is as grim as it
is now*
-
6-
Andj today w.e cannot afford to withhold proper foreign aid# We
have made loans to China, Turkey, and Greece» We have given aid to
England, France, Italy, and other western European countries under
the Intermwlid end the Economic Becovery Programs# Our experience up
to now has been that these expenditures are sound policy# We are
succeeding in our objectives; of promoting recovery and stemming the
inroads of communism#
Giving full recognition to all of these obligations and problems,
I want to again remind you that you Legionnaires and the wage earners
and investors of this nation must remain constantly alive to the
fiscal policy of your Government# The Government1s credit must be kept
above question* We must strive‘for a proper balance between over
expansion and excessive contraction of credit# Vie must maintain the
stability and soundness of our currency, make proper payments on our
debt, and assure an equitable;distribution of the tax load# Never lose
sight of the fact that your economic future is definitely tied in with
the financing of your Government*
I have talked at some length about your stake in Federal finance
on the liability side# Before X close I would like to emphasize that
every. American has a very great stake, too, on the assets^side of the
current situation in this country#
Our defense lies' not only in the money which we spend on planes
and guns, on military training, on aid to the democracies abroad,
important as these expenditures are# -And, it is not wholly the size, of
our Army, our Navy, our Air Force which will determine our defense
capacitieso
For our defense lies also in the vast wealth of this country and
the standards of living which we, as American citizens, enjoy# In
our wealth and our prosperity, all of us have a share# It is a share
not only in. Americans present, but in her. boundless future#
Our current high business activity is not a false boom propped up
by widespread commodity speculation as in 1920, nor by nationwide stock
speculation as in 1929# It is solid and substantial, based on actual
needs for the things that people use in their homes, for the homes
themselves, for factory and farm machinery, for schools and for highways
This is our strength, and our great bulwark against threatened
aggression# We can be proud of our prosperity today# We have fought
for it© We have worked to maintain it under all conditions# I am
sure that each one of us will continue to use all die means at his
command to further the well-being of our country and of our citizens#
~ 7 -
The crisis of our day is fundamentally a struggle between the
basic elements of a democratic order and a non-democratia order* This
nation^ because of our determined principles of free'society, is at
the forefront of this struggle*
Crises are never welcome*
an adjustment, individually and
require a realistic approach, a
yze the consequence, courage to
to be done, and the tenacity of
They require the mailing of a decision —
nationally. To be properly met, they
knowledge of facts, an ability to anal
do that which reason indicates ought
purpose to .follow through.
The United States looks today to such organisations as our
American Legion to assume their proper leadership in this battle with
courage, fortitude, and zeal*
'ie know that so long a s your own, and
similar organizations, continue to provide resolute leadership in your
community, in your state, and throughout the nation in carrying the
heavy responsibilities which we face today, the future- course of this
nation is secure and positive#
0O0
i
of our Management Committee.
«à
W# are moving forward toward the
at t ai nment of our goal of rendering
b e t t e r s e r v i c e to the t axpayer and
more e f f i c i e n t a d m i n i s t r a t i o n
in
the Bureau of i n t e r n a l Revenue.
__________
.
•
1*1
.
m
- 40 had a number of s t u d i e s made by
Treasury and Bureau s t a f f s as weli as
out si de s t u d i e s conducted by an
advi sory group to the j o i n t
CongressionaI Committeejof i nt e r n a l
Revenue Taxation.
These s t u d i e s have
brought out new techniques and new
procedures which will aid us in
modernizing and s i m p l i f y i n g e x i s t i n g
operations.
Some of these improvements
i have mentioned in t h i s d i s c u s s i o n
and f u r t h e r improvements can be
a n t i c i p a t e d through the recommendations
f o r c e had to be c r e a t e d within a
r e l a t i v e l y s h o r t time under very
trying c o n d i t i o n s in the e a r l y days
of t he war.
At times i t seemed t h a t
the g i g a n t i c tasK imposed by the
changes in the revenue laws was
insurmountable.
Ne ve r t h e l e s s , t he
splendid job under those
cond i t ions.
During the l a s t
ing a new
organ I z a t ion.
(
v ©itr §
I
o o k
a t the
I have been d i s c u s s i n g with you
»any of the t e c h n i c a l changes and
t e c h n i c a l problems which have had the
a t t e n t i o n of the Bureau of I n t e r n a l
Revenue,
in c l o s i n g .
I would like to
mention b r i e f l y sone of the broader
a s p e c t s of the Bureau' s
respons i b i I i t i e s .
As you know, the c o l l e c t i o n of
t a x e s is the b i g g e s t business in the
world from the standpoint of r e c e i p t s .
To do t h i s job r e q u i r e s the work of
n e a r l y 6 0 , 0 0 0 employees.
This huge
«1
-
37
-
e x p e d i t i n g refunds*
re turns
One of the most s t r i k i n g
r
I
made in
wi i i
appear in the I n s t r u c t i o n s which
will accompany the Forms 1040 to be
d i s t r i b u t e d by c o l l e c t o r s to taxpayers
in the n e x t few months.
i n s t r u c t i o n s will be in
o f
a pamphlet t e l
the t hi ngs he needs to
in language he understands.
,I .
¡Ill
«* 3 S **
C o l l e c t o r s will continue to compute
the t ax f o r a l l
t a x pa y e r s who f i l e
t he s e r e t u r n s .
The Withholding
Statements will continue to be used
as r e c e i p t s showing the amounts of
wages and t a x e s withheld, and they
must be a t t a c h e d to the Form IG40-A
or the Form 1040 in support of the
wages and withholding shown in the
returns.
This new procedure should aid
taxpayers.
And i t will prove of
g r e a t a s s i s t a n c e to the Bureau in
■
0P-
Form
10 4 0 - A, which can
used as the s i m p l i f i e d income ti
form f o r wage e a r n e r s .
I t will
r e t a i n a i l of the important
s i m p ! i f i c a t i o n f e a t u r e s of the
n ec es s ar y
information, and on the
back will be i n s t r u c t i o n s t h a t can
be e a s i l y read and understood.
,#8f.
34 ¡ t could be used as his income tax
return.
I t was a handy form,
ex p e r i e nc e showed t h a t
but
i t has several
disadvantages f o r both the t axpayer
and the government.
A major
d i f f i c u l t y arose from the f a c t t h a t
m i l l i o n s of employees work f o r more
than one employer during the y e a r ,
ana the d u p l i c a t i o n of t a x forms on
t h e i r s e p a r a t e Withholding Statements
has caused c o n s i d e r a b l e a d m i n i s t r a t i v e
difficulty.
A new form has t h e r e f o r e been
public will be noted f o r the f i r s t
time when the income t a x forms f o r
1948 are d i s t r i b u t e d by the
c o l l e c t o r s to the t a x p a y e r s .
These
improvements include a s i m p l i f i e d
income t a x form for wage e a r n e r s , and
a more i n t e l l i g i b l e p r e s e n t a t i o n of
i n s t r u c t i o n s f o r making out income
t ax r e t u r n s .
For several
years the
Witnnolding Statement (Form W-2)
wnich an employee r e c e i v e s from his
employer has been
i s o )designe
f u l l y accomplish c e r t a i n of t hese
corrections.
The program covered
approximately f i f t y p oi nt s which need
!
/
/
CongressionaI a t t e n t i o n .
The Treasury a l s o has
t r a n s m i t t e d to the Congress i ona I
Committees and r e l e a s e d to the
public in the l a s t two years r e p o r t s
on seventeen s e p a r a t e t e c h n i c a l
s t u d i e s f o r general postwar t ax
revi si on.
Some of the l a t e s t a d m i n i s t r a t i v e
developments a f f e c t i n g the general
- 31 -
development of new ones.
Si mi l ar
surveys by outside e x p e r t s al ready
have been made of two o t her major
Treasury a g e n c i e s , the Bureau of
Customs ano t ne U.
S.
Coast Guard.
As you Know, on the
side,
legislative
the Treasury has been
c o n s t a n t l y concerned with the
c o r r e c t i o n of i n e q u i t i e s and other
a d m i n i s t r â t ive d e f e c t s
in t a x
law.
We t r a n s m i t t e d t o the Congress t h i s
year a b a s i c program of t e c h n i c a l
l e g i s l a t i v e r e v i s i o n s required to
Our most r e c e n t st ep toward
g r e a t e r Bureau of I nt er nal Revenue
e f f i c i e n c y has been the s e l e c t i o n of
a management-engineering firm to make
an o v e r - a l l
survey and a n a l y s i s of the
o p e r a t i o n s of c o l l e c t o r s *
offices.
F i n a n c i a l pr o v i s i o n for the survey
was made in the Tr easur y’ s 1949
a p p r o p r i a t i o n s Act.
I t should r e s u l t
In thorough c o o r d i n a t i o n of the
improvements in Bureau procedure
al r eady mapped out , and in the
- 29 In order t o e f f e c t a d d i t i o n a l
economies.
As a r e s u l t of an experiment
made in the C i eve Iend C o l l e c t o r ' s
office,
punch c a r d equipment Is
beingwi ns t aI led in the New York
area and In Chicago. D e t r o i t ,
ii:
Baltimore
tiifiW'ifea w w aftk
and Los Angèles to determine the t ax
_ok.
- ,
f o r (thos$ persons who e l e c t to have
the c o l l e c t o r s f i g u r e t h e i r t ax f o r
them.
The use of such mechan ica I
d evi c es is being t e s t e d and extended
j u s t as f a s t as p o s s i b l e .
employment of f r o n t
line enforcement
pe r s onneI .
The number of miscellaneous
e x c i s e tax r e t u r n s t r a n s mi t t e d to
the Washington o f f i c e of the Bureau
f o r examination and audit has been
d r a s t i c a l l y reduced.
The t o t a l
number of these r e t u r n s f i l e d each
year approximates 6 m i l l i o n ,
and a i l
but about 4 5 , 0 0 0 of these are now
to be processed by f i e l d a c t i o n
exclusively.
Decentra Ii zati on of
Washington o p e r a t i o n s will continue
to be i n s t i t u t e d as soon as pos si bl e
Of f i c e f o r c l a s s i f i c a t i o n p r i o r to
assignment to the agent s f o r
investigation.
,
Cer t ai n other
f u n c t i o n s now performed in the
Washington o f f i c e ,
such as the
determination of the penalty f o r
f i l i n g of individual
late
income t a x
r e t u r n s , a r e being delegated t o the
field offices.
The est i mat ed c l e r i c a l
and other savings r e s u l t i n g from
such t r a n s f e r s from the Washington
o f f i c e a r e being a l l o c a t e d t o the
f i e l d o f f i c e s f o r the f u r t h e r
i ncome
returns
over, now a s s e r t e d by the Washington
office,
will be a s s e r t e d by C o l l e c t o r s
on and a f t e r January I,
1949, under
delegated a u t h o r i t y .
'
Selection
o f
r e t u r n s for audi t
will be made by revenue agents
l oc a l l y
r a t h e r than by a udi t or s a t the
i ce.
Procedures are now be'sng draft ed
which will e l i mi n a t e (the) sending of
individual
$7,000
income tax r e t u r n s of
and over t o t h e Washington
- 25 advancement of the Bureau' s work
have brought e x c e l l e n t r e s u l t s .
1
should like to mention b r i e f l y a few
of the admini s t r a t i ve changes which
have been adopted.
You may be i n t e r e s t e d
in some of
the s p e c i f i c changes in procedure.
Individual t e c h n i c a l refund allowances
of under $ 1 , 0 0 0 ,
now scheduled by the
Washington o f f i c e will
be scheduled
by the C o l l e c t o r s beginning
January
I,
1949.
P e n a l t i e s on delinquent individual
expanded foIfowing d i s c u s s i o n s
between the Comm i ss i oner and myself.
V
This a c t i o n was l a t e r concurred in
by the r e p o r t of the House-Senate
J o i n t Committee on Internal
Taxation.
Revenue
F u r t h e r improvements
in Bureau procedures and Bureau
management growing out of the
s ug ge s t i o ns in the J o i n t Committee
r e p o r t have been pushed as f a s t as
capable personnel could be obtained.
These various s t e p s f o r
23
■ *y
s t r e a m l i n e procedures f o r e f f e c t i v e
and e f f i c i e n t s e r v i c e under
pr es ent - day c o n d i t i o n s .
To d a t e ,
t h i s Program has made i t p os s i bl e
to d i v e r t approximately 7 0 0 , 0 0 0
man-hours per year from c l e r i c a l
r o u t i n e s to enforcement work.
in November,
1945, the
Commissioner of I nt er nal Revenue
u
-t
e s t a b l i s h e d a small management s t a f f
in his o f f i c e .
Ear l y t h i s year ,
t h i s s t a f f was strengthened and
■
22
caught.
The expansion of r e s p o n s i b i l i t i e s
laid upon the Bureau has had
far-reaching results
in other ways,
especially
in the f i e l d of ope r a t i ng
efficiency.
Ouring the tremendous
work load of the war y e a r s ,
t he r e had
h
been l i t t l e time a v a i l a b l e to seek
improvements in procedure.
In 1947,
however, a Work S i m p l i f i c a t i o n Program
was put into e f f e c t by the Treasury
and the Bureau t o d i s c o v e r and
e l i m i n a t e d u p l i c a t i o n of e f f o r t and to
I I
21
approximately $ 2 . 0 b i l l i o n for each
of the f i s c a l
years.
While the amounts of revenue
involved in the t a x evasion c a s e s
and c o l l e c t e d as a r e s u l t of
i n v e s t i g a t i o n ar e
large,
yet the
a c t u a l number of v i o l a t o r s was a
very small per c ent age of the t o t a l
number of t a x p a y e r s .
The g r e a t
ma j or i t y of Americans f u l l y and
f a i t h f u l l y di s char ge t h e i r t a x
r e s p o n s i b i I i t y , and a r e e n t i t l e d to
be assured t h a t the evaders will
be
the s a l a r y s t a b i l i z a t i o n
•-
•
p r o v i s i ons
and increased
currency c i r c u l a t i o n during the war
year s g r e a t l y
i ncreased the number of
t ax evader s.
n e c e s s i t y , our
enforcement
had to be
i n t e n s i f i e d and we have found, as a
result,
t h a t more and more criminal
c a s e s are being i n s t i t u t e d .
Likewise,
the campaign a g a i n s t t a x evaders
yielded a d d i t i o n a l assessments which
>
reached the unprecedented t o t a l
of
d e f i n i t e value in building a sense
of s e c u r i t y among t h e i r employees,
and with minor e x c e p t i o n s , employees
themselves have supported the
withholding system.
Other many and varied tasks
were t h r u s t upon the Bureau of
I
- .
,
Int ernal Revenue during t h i s same
period.
The Bureau was c a l l e d
upon to undertake the adm i n i s t r a t i o n
of such measures as the exces s
p r o f i t s t ax
law, the pension t r u s t
p r o v i s i o n s of the income tax law.
from $22 mi l l i on in 1943 to only
$1. 1 mi l l i on in 1948.
The c o l l e c t i o n of income t a x e s
from i ndi vi dual s by withholding
has now become an e s t a b l i s h e d
f e a t u r e of our economy, and mi l l i ons
of c i t i z e n s have discover ed t h a t
is e a s i e r and more convenient to
pay t h e i r
income t a x e s by easy
i n s t a l l m e n t s each pay day than in
l a r g e r amounts q u a r t e r l y or
annually.
Employers have learned
t h a t the withholding system has a
it
p H pj
-
17 -
another.
A tremendous saving of i n t e r e s t
was made p o s s i b l e by'speeding up
these refunds.
The number of refunds
paid increased from 16 mi l l i on
in
1343 to more than 32 mi l l i on f o r
1947,
while the amount of refunds pai d
increased from $ 5 8 7 mi l l i on in 1943
to $ 1 . 5 b i l l i o n for
1947.
Yet the
time r equi r ed to complete refunds
was cut from a year in 1943 to 2 1/2
months in 19 4 8 , and the amount of
i n t e r e s t paid in the refunds dropped
^
-
t
16 -
of income t a x paid by i ndi vi dual s for
1942, and i t was est imated t h a t a
total
of some 18 mi l l i on t axpayer s
would be e n t i t l e d to refunds a f t e r
f i l i n g their returns for
1943.
The refund problem involved
checking and comparing approximately
200 mi l l i on documents, such as
r e t u r n s , withholding r e c e i p t s ,
d e c l a r a t i o n s of est imated t a x .
and
This
task was complicated by the f a c t t ha t
thousands of t a x p a y e r s were moving
from one p a r t of the country to
overestimates.
15 P r a c t i c a l l y all
of
t he s e overpayments were due to
i r r e g u l a r employment and s i mi l a r
f a c t o r s which a u t o m a t i c a l l y caused
the withholding t ax t o exceed the
f i na l
income t a x .
A provi si on t h a t such overpayment
should be immediately refunded was
contai ned in the Current Tax Payment
Act.
In a d d i t i o n ,
the Act
provided f o r the p a r t i a l
*/
r
forgiveness
...................; ................................................ ~
”
m
i ndi vi dual s al one.
Nearly hal f of
t h i s was c o l l e c t e d through
withholding a t the s o ur c e by
empIoyers.
Most of the remainder
was paid on the b a s i s of " d e c l a r a t i o n s
of est i mat ed t a x .
Both of t he s e types of payments
were only approximate, however, and
as a r e s u l t s e v e r a l m i l l i o n persons
overpaid the t a x
in t h e i r
l i a b i l i t y reported
1943 r e t u r n s ,
e i t h e r because
of e x c e s s withholdings or because of
$ *
I
’
-
13 -
wage withholding were required to
make a a d i t i o n a l
payments on the basis
of " d e c i a r a t i o n s " of estimated t a x ,
ex c e pt t h a t most farmers were
permitted to postpone t h e i r es t i ma t e s
»
until
the end of the year.
Soon a f t e r the pay- as- you- go
system got unaer way, s e r i o u s
problems arose in i t s a d m i n i s t r a t i o n .
Of the $40 b i l l i o n c o l l e c t e d
the f i s c a l
year
1944, more than
$18 b i l l i o n was c o l l e c t e d from
in
12
t h e i r c u r r e n t t a x e s paid up in f u l l
before the end of the year.
This method of c o l l e c t i n g tax
did not apply, however,
to persons
who were in business for themselves,
to income from investments,
or to
c e r t a i n groups t h a t were exempt by
law, such as members of the armed
forces
in a c t i v e s e r v i c e , domestic
servants,
casual
agricultural
labor.
labor,
and
Individuals who were
not s u b s t a n t i a l l y paid up through the
;
' _
_
1
-
ti - y
,y .
If
y 'y
1343 resu I t e d , / p r o v i d i n g ) f o r the
withholding of 20 percent of wages
and s a l a r i e s
in e x c e s s of c e r t a i n
exemptions.
This Act went into
e f f e c t on July
a hal f
later,
I,
1943.
A year and
beginning with wages
paid on or a f t e r January
I,
1945,
" gr aduat ed” withholding became
e f f e c t i v e with a top r a t e of 2 2 . 5
percent of tne wages in e x c e s s of
withholding exemptions.
Under t h i s
system, numerous employees thus had
f
In March,
1942, the Treasury
recommended to the Congress t h a t the
law be changed to provide for c u r r e n t
tax c o l l e c t i o n s from i ndi vi dual s a t
the source during the year in which
the income was earned.
The Revenue
Act of 1942 provided for the
withholding by employers of Victory
t a x from the earned income of t h e i r
employees,
beginning January
I,
1943.
This metnod proved so s u c c e s s f u l
t h a t the Current Tax Payment Act of
9
our need
more
■X*
techni c i uns
S K I
a r e s u l t , by
iveness of income tax
examining f o r c e had dropped to the
lowest level
necess i ta ted
in y e a r s .
This
use of ws h o r t - c u t * 1
for s e l e c t i n g the r e t u r n s
ich would be examined in t he f i e l d .
second most important
eve
ient in the a dmî n i s t r a t i on c
war-time t a x e s ®as the inauguration
of
e pa
v
1il
ese steps
! ¡p
3©
e rap idly
c a u s e
reçu Ir
returns.
w w
rv
sr
ü
8
a 5»
«
t
*&
c a p a b l e
ed 0mo Ioyç-es
armed forces
© o r 6
lese I
s a r i Iy b
5*1
rep lacëd by
©need arents
t i me,
c
more
S-Stff
3 I
7
The information r e t u r n
ed advantageous in
procedure
/
B IA)
1 1 fac i I î t a t e d
( s e v e r a
f reouent/drossVchecKi ng
V«-
■*|J*1*^
c o l l e c t i o n d i s t r i c t s of the
in the many c a s e s
«
s a l a r y e a r n e r s moved from one
c o l l e c t i o n d i s t r i c t to another.
i
It
a I so «nab Ied) us to c o o r d i n a t e the
timing; of our e f f o r t s to s ec ur e
f i l i n g of delinquent r e t u r n s ,
and to
d i s t r i b u t e forms to the t a x pa y e r s f or
f i I ine of s o - c e I I
ion*'
in
it
nature of
information r e t u r n s by c o r p o r a t i o n s
paying s a i a r i e s ,
etc.,
wages, dividends,
to i n d i v i d u a l s .
These r e t u r n s
ide the bureau with a Key to
those
individuals
fs i
to f Î I
r e t u r n s or f a i l e d to r e p o r t a l l
income.
This information is an
supp I
other aydi t in?
nve
1 1 ies which are n e c e s s a r i l y
in enforcing the t a x
laws.
their
changed to the g r o s s income concept ,
and, by 1944, we had a standard
requirement t h a t fevery individual
having for the t a x a b l e year a gross
income of $500 or more s hal l make a
return."
I t is obvious t h a t these
changes in the requirement accounted
for a g r e a t i n c r e a s e in the number of
r e t u r n s being f i l e d ,
and,
therefore,
the Bureau was faced with a g r e a t e r
problem of e n f o r c e m e n t ^
Fortunately,
t her e were
p r o v i s i o n s in the law which required
4
mm
jH
^
«H»
revenue f o r Government o p e r a t i o n s ,
in p a r t to curb the war p r o f i t s from
war c o n t r a c t s , and in p a r t to reduce
the danger1 of i n f l a t i o n by r e s t r i c t i n g
g
the spending power
\
t a x pa y e r s
The Revenue Act of 1940 made a
s u b s t a n t i a l p o l i c y change in the
d e f i n i t i o n of the i ndi vi dual s required
to f i l e
income tax r e t u r n s .
t h a t time,
P r i o r to
the requirement f o r f i l i n g
was based upon the "net income* of the
i nd i v i d ua l .
the 1940 Act,
/
»
However, beginning with
the requirement was
in t he f i s c a l
Bureau c o l l e c t e d
taxes
year
income and p r o f i t s
in t h e amount of
based on 3 mi l l i o n
However,
billion,
tax r e t u r n s .
Bureau was c o l l e c t i n g
returns.
$2. 1
by the. f i s c a l
these ta x e s ,
1 940 t he
ye a r
1948,
$31 b i l l i o n
the
in
bas ed on 60 mi l l i o n t ax
S i mu I t a n e o u s I y . exc i seT)taxes
were h e a v i l y
unprecedented
increased.
increase
Thi s
in r e c e i p t s and
r e t u r n s t o be p r o c e s s e d was a l s o causei
by maj o r c ha nge s
In t he y e a r s
sseo these
in t h e r evenue
laws.
1 9 4 2 - 4 3 Co ng r e s s
laws in p a r t
to p r o v i d e
a d m i n i s t r a t i o n and management of the
Bureau of I nt e r na l Revenue.
The g r e a t e s t
impact in r e c e n t
year s on tax pol i c y and a d m i n i s t r â t ion
began in 1940 before we were a c t u a l l y
/
in war.
'
,~ ;.
’
V 1|5|j
v:
J'* v
During those c r i t i c a l
in Western Europe,
■ sj
fJ
days
the Congress
wisely began t o i n c r e a s e the tax base
and the t a x r a t e .
recognized,
As is well
t h i s wise a c t i o n on the
p a r t of Congress aided m a t e r i a l l y in
preparing us to meet the a g gr es s i on
which came during the next y e a r .
P o l i c y and P r a c t i c e in
Tax Admi ni s t r a t i on
As war has shaped our general
tax p o l i c i e s
in a very
large measure,
so has i t shaped many of the p o l i c i e s
and much of the p r a c t i c e of tax
admi n i s t r a t i on.
I want to d i s c u s s
t oni ght some of the g r e a t changes
which have developed in Federal tax
♦
a d m i n i s t r a t i o n in r e c e n t y e a r s ;
some of the f a r - r e a c h i n g problems
whicn grew out of war-time and postwar
taxation,
and the manner in which
these problems have been met by the
•%'S
The f o l l o w i n g a d d r e s s by S e c r e t a r y S n y d e r b e f o r e t h e
I n s t i t u t e o f F e d e r a l T a x a t i o n a t th e Bovard A u d i t o r i a l
U n i v e r s i t y o f S o u t h e r n C a l i f o r n i a Law S c h o o l , L o s A n g f l e s ,
C a l i f o r n i a , i s sc h e d u le d f o r d e l i v e r y a t < T ^
P«S»T«,
F r i d a y , O c t o b e r 2 2 , 1 9 4 8 and i s f o r r e l e a s e r a t t h a t tim e «
g \ Jo
P.7K,
TREASURY DEPARTMENT
Washington
(The following address by Secretary Snyder before the
Institute of Federal Taxation at the Bovard Auditorium,
University of Southern California Law School, Los Angeles,
California, is scheduled for delivery at 8:30 P»mo9 P«S«T»,
Friday, October 22, 1948, and is for release at that time,»)
policy AND PRACTICE
in t a x administration
As war has shaped our general tax policies in a very large measure,
so has it shaped many of the policies and much of the practice of tax
administration* I want to discuss tonight seme of the great changes
which have developed in Federal tax administration in recent years;
some of the far-reaching problems which grew out of war-time and postwar
taxation, and the manner in which these problems have been met by' the
administration and management of the Bur< ¡au of Internal Revenue*
The greatest impact in recent years on tax policy and administration
began in 194.0 before we were actually in war* During those critical days
in Yvestern Europe, the Congress wisely began to increase the tax base
and the tax rate* As is well recognized, this wise action on the part of
Congress aided materially in preparing us to meet the aggression which
came during the next year*
In the fiscal year 194.0 the Bureau'collected income and profits
taxes in the amount of $2*1 billion, based on 9 million tax returns*
However, by the fiscal year 1948, the Bureau was collecting $31 billion
in these taxes, based on 60 million tax returns* Simultaneously, excise
taxes were heavily increased* This unprecedented increase in receipts and
returns to be processed was also caused by major changes in the revenue
laws* In the years 194-2—43 Congress passed these laws in part to provide
revenue for Government operations, in part to curb the war profits from
war contracts, and in part to reduce the danger of inflation by restricting
the spending power of taxpayers.
The Revenue Act of 1940 made a substantial policy change in the
definition of the individuals required to file income tax returns* Prior
to that time, the requirement for filing was based upon the "net income”
of the individual* However, beginning with the 1940 Act, the requirement
was changed to the gross income concept, and by 1944# we had a standard
requirement that ”every individual having for the taxable year a gross
income of $500 or more shall make a return*” It is obvious that these
changes in the requirement accounted for a great increase in the number
of returns being filed, and, therefore, the Bureau was faced with a
greater problem of enforcement*
S-8S7
- 2 —
Fortunately, there were provisions in the law which required the
filing of so-called ’’automatic information” in the nature of information
returns by corporations paying salaries, wages, dividends, etc«, to
individuals# These returns provide the bureau with a key to those
individuals who failed to file returns or failed to report all their
income# This information is an important supplement to the many other
auditing and investigating, facilities which are necessarily used in
enforcing the tax laws#
The information return procedure proved advantageous in several ways.
It facilitated frequent cfoss-checking among the 64 collection districts
of the United States in the many cases where wage and salary earners moved
from one collection district to another# It also enabled us to coordinate
the timing of our efforts to secure the filing of delinquent returns, and
to distribute forms to the taxpayers for the next year# These steps were
important because of the rapidly increasing number of persons who were
required for the first time to file returns#
The Bureau was at the same time losing a large number of capable and
experienced employees to the armed forces# These men and women were
necessarily being replaced by inexperienced agents# At the same time, the
law became more complex and our need for skilled technicians more intense# <
As a result, ty 1944 the effectiveness of income tax examining force had
dropped to the lowest level in years# This necessitated the use of ’’short
cut” procedures for selecting the returns which would be examined in the
field#
The second most important development in the administration of war
time taxes was the inauguration of the pay-as-you-gd system#
In March, 1942, the Treasury recommended to the Congress that the
law be changed to provide for current tax collections from individuals
at the source during the year in which the income was earned. The Revenue
Act of 1942 provided for the withholding by employers of Victory tax from
the earned income of their employees, beginning January 1, 1943* This
method proved so successful that the Current Tax Payment Act of 1943
resulted, providing.:- for the withholding of 20 percent of wages and sal
aries in excess of certain exemptions# This Act went into effect on
July 1, 1943 , A year and a half later, beginning with wages paid on or
after January 1, 1945, ’’graduated” withholding became effective with a
top rate of 22*5 percent of the wages in excess of withholding exemptions#
Under this system, numerous employees thus had their current taxes paid
up in full before the end of the year#
This method of collecting tax did not apply, however,, to persons who
were in business for themselves, to income from investments, or to certain
groups that were exempt by law, such as members of the armed forces in
active service, domestic servants, agricultural labor, and casual labor#
S-887
i
4
3 -
I n d iv i d u a ls who w ere n o t s u b s t a n t i a l l y p a id up th ro u g h th e wage w ith
h o ld in g w ere r e q u ir e d t o make a d d i t i o n a l paym ents on th e b a s i s o f
” d e c l a r a t i o n s *?• o f e s tim a te d t a x , e x c e p t t h a t m ost fa rm e rs w ere p e rm itte d
t o p o stp o n e t h e i r e s t im a t e s u n t i l t h e end o f th e y e a r *
Soon a f t e r th e p a y -a s -y o u -g o syste m g o t under w ay, s e r i o u s problem s
a r o s e i n i t s a d m in is t r a tio n *
Of th e $40 b i l l i o n c o l l e c t e d in th e f i s c a l y e a r 19 44* niore th an
$>18 b i l l i o n w as c o l l e c t e d from i n d iv id u a ls a lo n e * N e a r ly h a l f o f t h i s
was c o l l e c t e d th rou gh w ith h o ld in g a t th e so u rc e b y em p loyers* Most o f th e
rem ain d er was p a id on the b a s i s o f ^declarations*1 o f e s tim a te d t a x *
Both o f t h e s e t y p e s o f paym ents w ere o n ly a p p ro x im a te , h o w ever, and
as a r e s u l t s e v e r a l m i lli o n p e rso n s o v e r p a id the t a x l i a b i l i t y r e p o r t e d
i n t h e i r 1943 r e t u r n s , e i t h e r b ecau se of e x c e s s w ith h o ld in g s o r b e c a u se of
o v e r e s t im a t e s * P r a c t i c a l l y a l l of t h e s e overpaym en ts w ere due t o i r r e g u l a r
employment and s i m il a r f a c t o r s w hich a u t o m a t ic a lly ca u se d th e w ith h o ld in g
t a x t o e xceed th e f i n a l income t a x *
A p r o v is io n t h a t su ch overpaym en ts sh o u ld b e im m e d ia te ly re fu n d e d was
c o n ta in e d in th e C u rre n t T ax Payment A ct* I n a d d it io n , the A ct p ro v id e d
f o r th e p a r t i a l f o r g i v e n e s s o f income t a x p a id b y i n d i v i d u a l s f o r 1 9 4 2 ,
and I t w as e stim a te d t h a t a t o t a l o f some 1 8 m i lli o n t a x p a y e r s w euld be
e n t i t l e d to r e fu n d s a f t e r f i l i n g t h e i r r e t u r n s f o r 19 4 3 *
\ o' !§j .•v.' - ;'■ ' /pig*-• % ' V '
The r e fu n d problem- in v o lv e d c h e c k in g and com paring a p p ro x im a te ly
200 m i lli o n docum ents, su ch as r e t u r n s , w ith h o ld in g r e c e i p t s , and d e c la ^
r a t i o n s o f e s tim a te d t a x * T h is ta.sk was c o m p lic a te d by th e f a c t t h a t
th ou san d s o f t a x p a y e r s w ere moving from .on e p a r t o f t h e c o u n tr y to an oth er#
A trem endous s a v in g o f i n t e r e s t was made p o s s i b le by sp e e d in g up t h e s e
re fu n d s* The number o f re fu n d s p a id in c r e a s e d f rom 1 6 m i lli o n i n 19 4 3 t o
more th an 3 2 m i lli o n f o r 1 9 4 7 , w h ile th e amount o f r e fu n d s p a id in c r e a s e d
from $58 7 m i l l i o n i n 19 4 3 t o ,.^ 1 * 5 b i l l i o n f o r ' 1 9 4 7 * - l e t th e tim e r e q u ir e d to
com plete re fu n d s was cu t from a y e a r in 19 4 3 to 2 l / 2 months i n 1 9 4 3 , and
th e amount o f i n t e r e s t p a id i n the r e fu n d s dropped from $ 2 2 m i l l i o n i n
1943 t o o n ly $ 1 * 1 m i l l i o n in 19 4 8 *
The c o l l e c t i o n o f income t a x e s fro m i n d iv id u a ls b y w ith h o ld in g h as
now become an e s t a b lis h e d f e a t u r e o f our economy, and m i l l i o n s o f c i t i z e n s
have d is c o v e r e d t h a t i t i s e a s i e r and more c o n v e n ie n t to p a y t h e i r income
t a x e s b y e a s y in s t a llm e n t s each p a y d a y th an in l a r g e r amounts q u a r t e r l y
o r a n n u a lly # E m ployers have le a r n e d t h a t th e w it h h o ld in g sy ste m h as a
d e f i n i t e v a lu e i n b u ild in g a se n se o f s e c u r i t y among t h e i r em p lo yees, and
w ith m inor e x c e p t io n s , em ployees t h e m s e lv e s , have su p p o rte d th e w ith h o ld in g
system *
S -8 8 7
- 4 -
Other many ana varied tasks were thrust upon the Bureau of Internal
Revenue during this same period® The Bureau was called upon to under
take the administration of such measures as the excess profits tax law,
the pension trust provisions of the income tax law, and the salary
stabilization provisions®
High tax; rates and increased currency circulation during the war years
greatly increased the number of tax evaders» Of necessity, our enforce
ment efforts had to be intensified and we have fcund, as a result, that
more and more criminal cases are being instituted«» Likewise, the campaign
against tax evaders yielded additional assessments which reached the un
precedented total of approximately $2*0 billion for each of tho fiscal
years©
While the amounts of revenue involved in the tax evasion cases and
collected as a result of investigation are large, yet the actual number
of violators was a very small percentage of the total number of taxpayers©
The great majority of Americans fully and faithfully discharge their tax
responsibility, and are entitled to be assured that the evaders will be
caught®
The expansion of responsibilities laid upon the Bureau has had farreaching results in other ways, especially in the field of operating ef
ficiency» During the tremendous work load of the war years, there had
been little time available to seek improvements in procedure* In 1947,
however, a Work Simplification Program was put into effect by the Treasury
and the Bureau to discover and eliminate duplication of effort and to
streamline procedures for effective and efficient service under presentday conditions©. To date, this Program has ma.de it possible to divert ap
proximately 700,000 man— hours per year from clerical routines to enforce
ment work©
In November, 1945, the Commissioner of Internal Revenue established
a sma,ll management staff in his office«» Early this year, this staff was
strengthened and expanded following discussions between the Commissioner
and myself® This action was later concurred in by the report of the HouseSenate Joint Committee on Internal Revenue Taxation© Further improvements
in Bureau procedures and Bureau management growing out of the suggestions
in the Joint Committee report have been pushed as fast as capable personnel
could be obtained©
These various steps for advancement of the Bureau1s.work have brought
excellent results« I should like to mention briefly a few of the admin
istrative changes which have been adopted©,
You may be interested in seme of the specific changes in procedure*
Individual technical refund allowances of under ^1,000, now scheduled by
the Washington office will be scheduled by the Collectors beginning Jan
uary 1, 1949®
S-887
- 5 *
Penalties on delinquent individual income tax returns of $7,000 and
over, now asserted by the Washington office, will be asserted by Collectors
on and after January 1, 1949, under delegated authority#
Selection of returns for audit will be made by revenue agents locally
rather than by auditors at the Washington office*
Procedures are now being drafted which will eliminate t h e e n d i n g of
individual income tax returns of $7,000 and over to the Washington office
for classification prior to assignment to the agents for investigation#
Certain other functions now performed in the Washington office^ such as
the determination of the penalty for late filing of individual incerne tax
returns, are being delegated to the field offices* The estimated clerical
and other savings resulting from such transfers from the Washington office
are being allocated to the field offices for the further employment of
front line enforcement personnel©
The number of miscellaneous excise tax returns transmitted to the
Washington office of the Bureau for examination and. audit has been dras
tically reduced# The total number of these returns filed each year ap
proximates 6 million^ and all but about 45*000 of these are now to be
processed by field action exclusively* Decentralization of Washington
operations will continue to be instituted as soon as possible in order to
effect additional economies*
As a result of an experiment made in the Cleveland Collector's office,
punch card equipment is being installed in the New York area and in
Chicago, Detroit, Baltimore and Los Angeles to determine the tax for those
persons who elect to have the collectors figure their tax for them# The
use of such mechanical devices is beinj. tested and extended just as fast
as possible*
Our most recent step toward greater Bureau of Internal Revenue
efficiency has been the selection of a management— engineering firm to make
an over-all survey and analysis of the operations of collectors1 offices*
Financial provision for the survey was made in the Treasury1s 1949 ap
propriations Act# It should result in thorough coordination of the im
provements in Bureau procedure already mapped out,' and in the developmait
of new one a Similar surveys by outside experts already have been made of
two other major Treasury agencies, the Bureau of Customs and the U# S© Coast
Guard*
As you know, on the legislative side, the Treasury has been constantly
concerned with the correction of inequities and other administrative
defects in tax law* We transmitted to the Congress this year a basic pro
gram of technical legislative revisions required to fully accomplish
certain of these corrections© The program covered,approximately fifty
points which need Congressional attention#
S— 887
* 6 -
The Treasury also has transmitted to the Congressional Committees
and released to the public in the last two years reports on seventeen
separate technical studies for general postwt
ar tax revision#
Some of the latest administrative developments affecting the general
public will be noted for the first time when tile income tax forms for
1948 are distributed by the collectors to the taxpayers* These improve
ments include a simplified income tax form for wage earners* and a more
intelligible presentation, of instructions for making out income tax returns#
For several years the Withholding Statement (Form W-2) which an
employee receives from his employer has been eo designed that it could be
used as his income tax return# It was a handy form* but experience showed
that it has several disadvantages for both the taxpayer: and the government#
A major difficulty arose from the fact that millions ofsemployees work for
more than one employer during the year, and the duplication of tax forms
on their separate Withholding Statements has caused considerable adminis
trative difficulty#
A new form has therefore been devised, Form 1040-A* which can be used
as the simplified income tax form for wage earners# It will retain all of
the important simplification features of the Withholding Statement but will
eliminate its defects© On the face of the ibrm there ¥i/ill be adequate
space for entering, the necessary information* and on the back, will be in
structions that can be easily read and understood*. Collectors will continue
to compute the tax for all taxpayers who file these returns* The With
holding Statements will continue to be used as receipts showing the amounts
of wages and taxes withheld, and they must be attached to the Form 1040-A
or the Form 1040 in support of the wages and withholding shown in the
returns#
This new procedure should aid taxpayers© 'And it will prove of great
assistance to the Bureau in its gigantic task of auditing the returns and
expediting refunds*
One of the most striking improvements ma.de in years will appear in
the instructions Which will accompany the Forms 1040 to be distributed
by collectors to taxpayers in the next few months*
The new instructions will be in the form of a pamphlet telling the
taxpayer the things he needs to know in language he understands#
I have been discussing with you many of the technical changes and
technical problems which have had the attention of the Bureau of Internal
Revenue# In closing* I would like to mention briefly seine of the broader
aspects of the Bureaus responsibilities#
S-887
~ 7 -
^°U ^naWj
c° H ec'tion of taxes is the biggest business in the
world from the standpoint of receipts* To do this job requires the work
oi nearly 60,000 employees. This huge force had to be created within a
relatively short time under very trying conditions in the early days of
. e ™ ar*
times it seemed that the gigantic task imposed by the changes
^e^ enue
was insurmountable* Nevertheless, the Bureau did a
splendid job under those adverse conditions#
During the last two years, we have been taking a new look at the
Bureau organization* We have had a number of studies made by Treasury and.
Bureau^ staffs as well as outside studies conducted by an advisory group to
e joint Congressional Committee- of Internal Revenue Taxation* These
studies have^brought out new techniques and new procedures which will aid
us in modernizing and simplifying existing operations# Some of these im
provements I have mentioned in this discussion and further improvements can
be anticipated through the recommendations of our Management Committee.
We are ^moving forward toward the attainment of our goal of rendering
better service to thetaxpayer and more efficient administration in the
Bureau of Internal Revenue#
oOo
S-887
f»
John E* Brown (4E4ee.Cha-irmaH)
V i c e Pre s i d e n t
Planters N a t i o n a l Bank and
Trust C o m p a n y
M e m p h i s vT umro ssce
A • C . Spurr
President
M o n o n g a h e l a P o wer C o m p a n y
Fairmont, W e s t Vi r g i n i a
R o y L. Stone (Vle-e—
F i r s t W i s c o n s i n Bank
Milw&hkea^
^p
Lev i P. S m i t h
B u r l i n g t o n Savings Bank,
B u r ling tnn, Vermorrtr
- 3 -
1rrmn)„
W a l t e r WL H e a d Hiüe'TTIaiffflUn)
President
Metier al A m erl® an Life Inaurano e Co*
Saint L o uis
M'fssuttì?!
A l l e n T» Hup p
Secretary-Treasurer
A s s o c i a t e d R e t a i l e r s of Omaha
1 ty""TO'L ional Bank Bldg*
-c
Oniaha-;--^ e b renska
N o r w i n S. Bean
President
v
M a n c h e s t e r N a t i o n a l Bank^ Y v
»
m
L o r i n g L* G e l b a c h
President
C e n t r a l N a t i o n a l Bank of
Cleveland
ffievetendj O h i o
L. L. H u m p h r e y (Vluu ClialhmanJ
Pre s i d e n t
S e c u r i t y N a t i o n a l Bank
Duncan, O k l a h o m a
E. C. Sammons
Presi dent
U n i t e d States National
Bank
Bimadway-end 6th at OLai'tT
Portland;^,
Oregon
R. W, C o y n e (V4-ce Chairman)
Executive Director
T h e a t e r Owners of A m e r i c a
N e w York, N r " ? .
James C* W i l s o n (Vice C h a i r m a n )
Pre s i d e n t
F i r s t Bank & T r u s t Co.
P e r t h Amboy, N ew J e r s e y
G e o r g e M. B l o o m (^Tc
F i r s t N a t i o n a l Bank
S a n t a Fe, J î u w M'CJJliou
C h e s t e r R. M a r t i n
V i c e President
I n d u s t r i a l T^ust C o m p a n y
- 1 2 J -- w Q a f m < r n f n r
Providence^
B. R, R o b e r t s (V i o \w n s n )
Executive Vice President
D u r h a m Bank a n d Trust Company^ ^
Dcrrfaam, Nurth O m uliner
E. A. Ro b e r t s
President
F i d e l i t y M u t u a l L ife Insurance
Co.
PPT.VWQTT.
P h i l a d e l p h i a -)|
R h o d e Island
J o h n B* S l o a n
President
The C o u n t y Bank
Greenwood, S o u t h C a r o l i n a
'
L e R o y A. P e ase
Secretary
Greater North Dakota Association
Fargo, N o r t h Dakota
2
C h a rles A. C h r i s t o p h e r s o n
Chairman
Board of D i r e c t o r s
U n i o n Savings Bank
S i o u x Fplls, S o u t h D a k o t a
M E E T I N G OP ..STATE A D V I S O R ! C H A I R M E N
Hotel S t a t l e i v P a n American R o e m
w a ah i n g ton, B- C,
1 8 - 1 9 * 19 I18
10 :0 0 a,m, '
Oc t o b e r
Ed Leigh McMillan
President
C i t i z e n s Bank of Drewtout
Br-ewttrnT'^lah ama
Dr, J o h n S. N o l l e n “f C o ^ G h a l r .)
9^~~Seventh Avenue
Grinnell,
Evan Griffith
Chairman
B o a r d of D i r e c t o r s
U n i o n N a t i o n a l Bank
Manhattan, Kansas
T h omas J* G r o o m
Pre s i d e n t
B a n k of C o m m e r c e & S a v ings
Washington]^
Iowa
D. C.
A r t h u r F, M a x w e l l
President
F i r s t N a t i o n a l Bank
Biddeford, Maine
V, H, Northcutt
E x e c u t i v e Vice President
Th e First N a t i o n a l Bank of T a mpa
T a m p a , F L or4rda
C orod o n S« F u l l e r fVd.00 -Ch a i r « )
Vice President
Foxboro Company
Foxboro, M a s s a c h u s e t t s
J a c k s o n P. D i c k
G e o r g i a Power C o m p a n y
T ^ f e r x j e t - t a r - S t r eetj,„ lfr-W ,
A t l a n t a it, G^DrgTa^
F r a n k N, Isbey
President
D e t r o i t Fruit A u c t i o n
D p.1,32-e it, -Mich igaft
Ch a r l e s C, Adams
A d a m s A u t o Sales
Lewisto n, Idaho
N o r m a n B. C o l l i n s
President
National Security
(Vice Chairman)
Bank of Chicago;
Chicago EH,"iXÎTlldTs
V o n E. Lu s c h e r
V i c e President
Northwest Bancorporation
*
)
M i n n e a p o l i s B, M i n n e s o t a
Ch a r l e s H, B u e s c h i n g (-¥ i c 0 Gha jrman )
,
President
R e x I. Brown
L i n c o l n N a t i o n a l Bank & Trust Co.
P r e sident
For t Wayne, Indiana
M i s s i s s i p p i Power & L-jght Cc.
Jackson, M i s s i s s i p p i
Proposed Press Release
I
BB
'
\ m>, S -
• Advisory chairmen of the Treasury Department’s Savings Bonds Division,
representing thirty-three states, met in Washington today to consider
plans for a stepped-up bond selling drive to begin on Armistice Day and
continue through December 11.
Secretary Snyder, who called the meeting, welcomed the volunteer
bond group, which is composed of representatives of leading banking, in
dustrial, business and publishing institutions. In his brief remarks,
Mr. Snyder reviewed the important role of savings bonds in Treasury fiscal
policy, and reemphasized the need for spreading the public debt among as
many individual Americans as possible.
Talks were made by Alfred ¥iilliams, president of the Philadelphia
Federal Reserve Bank; Arno Johnson, vice-president of the J. Walter
Thompson Company, New York, and Milford J. Baker, vice-president of
Young and Rubicam, Inc., also of New York.
Vernon L. Clark, volunteer'National Director of the Savings Bonds
Division, reported on progress being made in reactivating local volunteer
organizations.
”1^ i y e ^ a r Americans invested nearly seven billion dollars in savingj^bonds,”/Mr. Clark said^^and in the first npjfe months^of 194$ we
slightly ahead of l^ertfyear’s figure for the corre^Jonding period.
We have/dnly begun ter^scratch the surfa c e ^ ^ w e ver^^i) re volunteers
are needed, and v^dimteer sales organizations shoifCd be established in
every community. ”
Leon J. Markham, sales director of the Savings Bonds Division, out
lined plans for the thirty-day promotional campaign, which begins on
Armistice Day. He said that efforts will be intensified through advertis
ing and other promotional avenues to reach the farmers who already own
more than six billion dollars in savings bonds, and who ’’will have the
greatest amount of crop income for investment in the Nation’s history.”
The fall campaign will also endeavor to establish person-to-person
canvasses in industries which did not conduct solicitations during the
Security Loan Drive last spring.
”In recent months we have added in excess of 2,500,000 new customers
in the systematic savings program, Mr. Markham stated, ”and participants
in the payroll savings plan are currently buying bonds at the rate of
$150,000,000 a month.”
Attending the two-day conference, which is being held at the Statier
Hotel in Washington, are the following volunteer bond sales advisors:
“Sales results for the first nine months
of 1 9 ^g,« Mr.
Clark said, “afe slightly better than the fine results achieved
during the corresponding
Mm
period of last year.
begun to scratch the surface, however.
We have only
More volunteers are
needed, and volunteer sales organizations should be established
in every community.“
TREASURY DEPARTMENT
In fo r m a t io n S e r v i c e
IMMEDIATE RELEASE
Monday. October 18. 194-8.:
WASHINGTON, D .C .
No. S-888
Advisory chairmen of the Treasury Departments Savings Bonds Division,representing thirty-three states, met in Washington today to consider plans
for a stepped-up bond selling drive to begin on Armistice Day and continue
through December 11.
*
'
Secretary Snyder, who called the meeting, welcomed the volunteer bond
group, which is composed of representatives of leading banking, imdustrial,
business and publishing institutions. In his brief remarks, Mr. Snyder re
viewed the important role of savings bonds in Treasury fiscal policy, and re
emphasized the need for spreading the public debt among as many individual
Americans as possible.
Talks were made by Alfred Williams, president of the Philadelphia Federal
Reserve Bank; Arno Johnson, vice-president of the J. Walter Thompson Company,
New York, and Milford J. Baker, vice-president of Young and Rubicam, Inc., also
of New York.
Vernon L. Clark, volunteer National Director of the Savings Bonds Divi
sion, reported on progress being made in reactivating local volunteer organi
zations.
’’Sales results for the first nine months of 194-8,” Mr. Clark said, ’’are
slightly better than the fine results achieved during the corresponding period
of last year. We have only begun to scratch the surface, however. More vol
unteers are needed, and volunteer sales organizations should be established
in every community.”
Leon J. Markham, sales director of the Savings Bonds Division, outlined
plans for the thirty-day promotional campaign, which begins on Armistice Day.
He said that efforts will be intensified through advertising and other promo
tional avenues to reach the farmers who already own more than six billion dol
lars in savings bonds, and who ’’will have the greatest amount of crop income
for investment in the Nation’s history,”
The fall campaign will also endeavor to establish person-to-person can
vasses in industries which did not conduct solicitations during the Security
Loan Drive last spring.
-
2
-
MIn recent months we have added in excess of* 2,500,000 new customers in
the systematic savings program,” Mr. Markham stated, »and participants in the
payroll savings plan are currently buying bonds at the rate of $150,000,000 a
month.”
' *
'
Attending the two-day conference, which is being held at the Statler Hotel
in Washington, are the following volunteer bond sales advisorsi
Ed Leigh McMillan, President, Citizens Bank of Brewton, Alabama; Thomas J*
Groom, President, Bank of Commerce and Savings, Washington, D. C.; V. H.
Northcutt, Executive Vice President, The First National Bank of Tampa;
Jackson P. Dick-, Georgia Power Company, Atlanta; Charles C. Adams, Adams Auto
Sales, Lewiston, Idaho; Norman B. Collins, President, National Security Bank
of Chicago; Charles H, Buesching, President, Lincoln National Bank and Trust
Company, Fort Wayne, Indiana; Dr. John S. Nollen, Grinnell, Iowa; Evan Griffith,
Chairman, Board of Directors, Union National Bank, M a n h a tta n , Kansas;
Arthur F, Maxwell, President, First National Bank, Biddeford, Maine; Corodon S.
Fuller, Vice President, Foxboro Company, Fcxboro, Massachusetts; Frank N. Isbey,
President, Detroit Fruit Auction; Von E. Luscher, Vice President, Northwest
Bancorporation, Minneapolis; Rex I, Brown, President, Mississippi Power and
Light Company, Jackson.
Walter W. Head, President, General American Life Insurance Company, St.
Louis; Allen T. Hupp, Secretary-Treasurer, Associated Retailers of Omaha;
Norwin^S. Bean, President, Manchester National Bank, New Hampshire; R. W. Coyne,
Executive Director, Theater Owners of America. , New York; James C. Wilson,
President, First Bank and Trust Company, Perth Amboy, New Jersey; George M*
Bloom, First National Bank, Santa Fe; B. R. Roberts, Executive Vice President,
Durham Bank and Trust Company, North Carolina; LeRoy A» Pease, Secretary,
Greater North Dakota Association, Fargo; Loring L. Gelbach, President,. Central
National Bank of Cleveland; L. L. Humphrey, President, Security National Bank,
Duncan, Oklahoma;1E.. C. Sammons, President, United States National Bank,
Portland, Oregon; E. A. Roberts, President, Fidelity Mutual Life Insurance
Company, Philadelphia; Chester R, Martin, Vice President, Industrial Trust
Company, Providence, Rhode Island; John B. Sloan, President, The County Bank,
Greenwood, South Carolina; Charles A, Ghristopherson, Chairman, Board of
Directors, Union Savings Bank, Sioux Falls, South Dakota; John E. Brown, Vice
President, Planters National Bank and Trust Company, Memphis; Levi P, Smith,
Burlington Savings Bank, Vermont; A. C. Spurr, President, Monongahela Power
Company, Fairmont, West Virginia; Roy L. Stone, First Wisconsin Bank, Milwaukee.
-o0o~
RELEASE m o r n i n g n e w s p a p e r s ,
Tuesday, October 19, 1948»
5
-
?
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 October 21, 1948,
and to mature January 20, 1949, which were offered October 15, 1948, were opened at the
Federal Reserve Banks on October 18«
The details of this issue are as followss
Total applied for Total accepted
-
Average price
-
$1,601,346,000,
900,834,000, (includes f62,974,000 entered on a non
competitive basis and accepted in full at
the average price shown below)
99*717/ Equivalent rate of discount approx. 1.118$ per annum
Range of accepted competitive bids*
High
Low
-
99.722 Equivalent rate of discount approx. 1.100$ per annum
99.716
»
*
*
«
■
1,124$ "
■
(27 percent of the amount bid for at the lew price was accepted)
Federal Reserve
District
Total
Applied for
Total
Accepted
Boston
New York
Philadelphia
Cleveland
$
28,092,000
1,277,503,000
36,004,000
19,210,000
8,940,000
3,483,000
114,915,000
6,299,000
6,155,000
19,802,000
10,933,000
70,010,000
$ 28,092,000
625,112,000
27,354,000
19,210,000
8,940,000
3,483,000
76,155,000
6,299,000
5,790,000
19,629,000
10,760,000
70,010,000
$1,601,346,000
$900,834,000
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
TOTAL
TREASURY DEPARTMENT
Information Service
Wa s h i n g t o n , d
RELEASE, H O M I N G NEWSPAPERS,
Tuesday, October 19, 1948».y
' No» S>~889
The Secretary of the Treasury announced last evening that the tenders
for $900,000,000 or thereabouts, of 91-day Treasury bills to be dated October 21,
194S, and to mature January 20, 1949* which were offered October 1$, 1948, were 1
opened at the Federal Reserve Banks on October 18*
The details of this issue are as follows:
Total applied for - 11,601,346,000
Total accepted
~
900,834*000 (includes $62,974,000 entered on a
non-competitive basis and accepted
in full at the average price shown
below)
Average price
- 99*717/ Equivalent rate of discount approx. 1,118$
per annum
Range of accepted competitive bids:
Hi-gh
Low
- 99*722 Equivalent rate of discount approx* 1,100$
per annum
~ 99«716 Equivalent rate of discount approx* 1.124$
per annum
(27 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
Ric hmond
Atlanta
Chicago
Sta Louis
Minneapolis
Kansas City
Dallas
San Francisco
$
28,092,000
1,277* $03,000
36,004*000
19*210,000
8,940,000
3*483,000
114,915,000
6,299*000
6,155,000
19,802,000
10,933,000
70,010,000
$ 28,092,000
625*112,000
27,354,000
19*210,000
8,940^000
3,483,000
76,155* 000
6,299,000
5*790,000
19*629,000
10,760,000
70,010,000
$1,601,346,000
$900,834,000
. - .. TOTAL
0O0
u n p a r a l l e l e d pr ospect before us
Through the co o pe r a t i on of a l l
groups in moderation and
s e I f - r e s t r a i n t we can make t h i s
prospect a r e a l i t y .
32 -
expansion in these f a c i l i t i e s will be
called for
years
in
Te l e v i s i o n , p l a s t i c s ,
and other new
inventions are a t t r a c t i n g an increasin
pub I i c
in
our nat i onal economy, we
unusually favorable basis
Í f we can
con t i nue.d
avoid the mistakes of the
if we can
guard
against excesses
t h a t might throw our economy out
Î feel
t h a t we have an
|g||
31
depressions t h a t have plagued our
nati on s i n c e i t s e a r l i e s t days - a b r i l l i a n t f u t u r e is in pr o s pe c t .
Our f a c t o r i e s have not yet been
able to meet the demand for new
automobiles,
cars,
farm machinery,
freight
e l e c t r i c power equipment,
steel,
t hi ngs.
pipelines,
and many other
New houses, new schools
and highways, new e l e c t r i c c a p a c i t y ,
and other c a p i t a l
equipment ar e
ur gent l y needed.
Our population
is growing, and a s t i l l
greater
30 -
maintaining our present p r o s p e r i t y ,
t he neeo for continued r e s t r a i n t s
♦
on s p e c u l a t i o n ,
expansion,
excessive credit
p r i c e i n f l a t i o n , and other
developments t h a t t h r e a t e n an
eventual) depressing e f f e c t on
business, must be recognized and
widely supported.
With our people on the a l e r t
to p r o t e c t t h e i r h e r i t a g e - - to
defend themselves a g a i n s t the
r e c u r r i n g c y c l e s of booms and
- 29 expendi t ur es in every pos s i bl e way,
and to achieve a balanced budget, or
better.
I t was a g r e a t s a t i s f a c t i o n .
f
therefore,
to announce a t the end of
the f i s c a l
year j u s t passed,
that
we had achieved by f a r the l a r g e s t
rplus in our h i s t o r y
$8,419,000,000.
But, u n f o r t u n a t e I y ,
due to the t a x - c u t ,
we shall
have no
budget surplus a v a i l a b l e as an
an t i - i nfI a t i on weapon in the c u r r e n t
f i sea I
If we are to be s u c c e s s f u l
y
w
W
in
v
our most
two y e a r s have
effective fiscal
to reduce
Inflationary pressures
in a r ed u c t i o n
l stated,
when I took over xthe
dut i e s of S e c r e t a r y of the Treasury,
that
i t was the r e s p o n s i b i I i t y of
the Government to r e d u c e / I t s
growing community.
If we wish our present level
o f
p r o s p e r i t y to continue we must be
c o n s t a n t l y on the a l e r t to p r o t e c t it.
We must r e s i s t any tendency to make th
same s e r i o u s mistakes as were made in
1928 and 1929, and in e a r l i e r business
booms.
Of g r e a t e s t
importance now
is the need for combatting
inflationary pressures.
The
Government has only limited weapons fol
this b attle,
but I a s s ur e you t h a t
• 26 *
■
I
Some pe o pl e a r e a p p r e h e n s i v e
I
a b o ut t he permanence o f our p r e s e n t
I
business
I
l e v e l s s o l e l y b e c a u s e t hey
a r e so h i g h .
economy.
much t oo
But we a r e
The l e v e l s o f
in a growing I
1929 a r e
low f o r us t o d a y .
We have
25 m i l l i o n more pe opl e than in 1929.
Our demands have been i n c r e a s e d by
new p r o d u c t s and s e r v i c e s , by h i g h e r
: '
production e f f i c i e n c y ,
by more
r a p i d t r a n s p o r t â t i on.
You in
Los Ange l e s we I I Know t h a t ol d
s t a n d a r d s q u i c k l y become o b s o l e t e
in a
ifà
25 -
undermined the business s t r u c t u r e .
But we have had no such e x p e r i e n c e .
In the commodity markets, no
s p e c u l a t i v e boom has developed,
d e s p i t e the huge demand f o r goods
and m a t e r i a l s during the war, and
the p e r s i s t e n t s h o r t a g e s which
have l as t ed up t o the p r e s e n t .
Thus the p o s s i b i l i t y of a cumulative
l i q u i d a t i o n of s p e c u l a t i v e holdings
and i n v e n t o r i e s , such as occur r ed
% >4
in 1920,
/ '• '
.
'
...!
‘. I
''
is g r e a t l y minimized.
the commodity markets is no g r e a t e r
than normal.
Business men have
been c a u t i o u s in expanding
inventories.
Had i t not been f o r the a c t i v e
measures taken by t h i s government
to prevent an unbalanced economy,
c o n d i t i o n s might well have been
different.
With r e c o r d - b r e a k i n g
c o r p o r a t e p r o f i t s , more than double
those of 1929, a s p e c u l a t i v e boom
in the s t o c k market might again have
i f *
23 -
Today we see very l i t t l e
evidence of weakness in the economic
structure,
situation,
a p a r t from the p r i c e
it
is t r u e t h a t business
dropped off t h i s summer in t e x t i l e s
and some other s o f t goods.
However,
t h i s type of industry adjustment, with
no appr eci abl e e f f e c t on the general
t r e n d, r e p r e s e n t s a normal c o r r e c t i v e
adjustment.
in the stock market, t r a d i n g
has remained r a t i o n a l .
Activity
in
stabilized
f o r about a ye ar around t he I
present fu ll
As we
f a r ms ,
action,
employment
Io o k
level.
over our c i t i e s
we s e e a h i g h - l e v e l
economy in I
wi th r e c o r d employment,
business highly prosoerous,
standards unequalled
t h i s c o u n t r y or
and
with
wi th
living
in t h e h i s t o r y of
in t h e wor l d.
From t ime t o t i me s i n c e t he end
o f t he war t h e r e have been g e n e r a l
e x p e c t a t i o n s o f a coming d e p r e s s i o n .
Many have p r e d i c t e d t h a t " i t c a n ' t
last."
has
But t h e hi gh
Iasted.
level
o f prosperi t
t he y have c o n t r i b u t e d t o a g e n e r a l
securt
exoer
As fte s t a n d on our p r e s e n t hi
economi c p I s
surroundin
*
*
-it
f
H
rt
y
elip
A8|r
V ”
f t 191
f f**
t' I
f
from t h e
**
ws, and l e g i s l a t i o n
Mi n¡mum
for p r o t e c t i n g the r i g h t s of labor
f-
|||^
n
which/ha^ broadened the use o f
c o l l e c t i v e bargaining in
n e g o t i a t i o n s , have
to
s t r engt hen and s t a b i l i z e the
structure.
They have m a t e r i a l l y
of a dec line in
reduced the
wage earners*
incomes and purchasing
power
The p o s i t i
agr i cu
||||
been p r o t e c t e d by safeguards a g a i n s t
excessive declines
in p r i c e s of
s t a b i l i t y of the banxîng s t r u c t u r e .
in the commodity warnets is p r o v i d e d
I
.
by the Commodity Exchange A u t h o r i t y .
In order to a i d in the c o n t r o l
I
I
of i n f l a t i o n , r e g u l a t i o n ? to r e s t r i c t I
the e x p a n s io n of c r e d i t
in the s a l e
I
o f / d u r a b l e consumer goods have
r e c e n t l y been r e i n s t a t e d .
Government f i s c a l oo I ic y has
been d i r e c t e d a g a i n s t or ic e i n f l a t i o n
by r e s t r i c t i n g c r e d i t ,
and by d i r e c t i n
budget s u r p l u s e s toward r e d u c i n g the
i
money s u p o l y .
S tr o ng measures have been passed I
j P
17 -
involves both types of p r o t e c t i o n .
Under the S e c u r i t i e s Exchange
Act of 1954* the Federal Reserve
Board is authori zed to limit the use ^
of c r e d i t
in the s e c u r i t y ma r ne t s .
This provides a means for discouraging
excessive stocx speculation.
Under
the p r o t e c t i v e o p e r a t i o n s of the
S e c u r i t i e s and Exchange Commission,
the public
extent,
is safeguarded to a large
a g a i n s t manipulative p r a c t i c e s
and misleading information in s e c u r i t y
marxets.
Some«hat s i m i l a r p r o t e c t i o n
f
‘W
t S'W.
.
r
<«k 16 -
4
4 d
^
I
two ways to- fci r t i f y the nation agai nst 1
a depression -■- to cushion i t s e f f e c t
1
should the blc >w come.
1
One i s to
prevent specu s t i v e e x c e s s e s - over-buying, civer-borrow i ng and
over - bui I d ing.
The other
is to
m i t i g a t e the p o t e n t i a l damaging
e f f e c t s by maintaining ourchas i ng
power, end by providing s e c u r i t y to
people, p a r t i c u l a r l y during the ear
s t a g e s of a btj s iness r e c e s s i o n .
The natic Dna1 program of th i s
government for
economic s e c u r i t y
nation.
for
in p e r t
trie f a c t
II£5
a r e re s o sons »d i p
t no«. at
A
inn i ne: o f the f o u r t h
bus i ness ac-t i v i
C'.
•ar year
m ues ëouno an
subst a n t i a I .
r%
as t
C
A
e situ ati
a f t e r the f i r s t f o r ! d
thereafter,
b u s i n e s s became
a lanced by widespread commodity
reached
, c o i p s r p f l w»tn
C# W' Î ^ i# ÿ
li
percent
f or the nat i on
shows an i n c r e a s e of 34 p e r c e n t over
t he r e s t o f t he Uni t ed S t a t
in view of
ib i i¡tie s
growth
t he
increa
imposed by t h i s
in p o p u l a t i o n ,
California
w ¿3» •
the people
have a p a r t i c u l a r s t awe
in
me as ur e s which have been t a n en tc
s a f e g u a r d t he n a t i o n a l
er d e p r e s s i o n .
%$.
economy a g a i n s t
These meas ur es
p r o t e c t you in Los An g e l e s ,
as
contracts,
rarming second among war
production c e n t e r s .
Because of the
many advantages o f f e r e d by your g r e a t
State,
it
is not s u r p r i s i n g t ha t many
of the war wor x e r s , plus v a s t numbers
of servicemen who learned to Know this
area during the war, have decided to
msKe Southern C a l i f o r n i a t h e i r home.
Population e s t i m a t e s show t h a t
C a l i f orn i a leads the nation in growth
s i n c e the l a s t census.
From 1340 to
1948, C a l i f o r n i a has gained 3 million
people.
This was an expansion of
219 p e r c e n t , a g a i n s t
States
6 S itr©g jn r e c e n t
y e a r s has been i r f p r e s s i y e.
This
is
p a r t of the g r e a t
a
i f i c Coa
During the i a r , Los Angele
i I billion
wmmmmmM
?r
o n
had r i s e n to $ 7 6 b i l l i o n .
And when
we entered the war in December 1941
i t stood a t $ 106 b i l l i o n .
This was
s u b s t a n t i a l l y higher than even the
1929 l e v e l .
the r a t e
Today, a t $215 b i l l i o n ,
I
is more than double what i t
I
was on Pearl Harbor Day.
Los Angeles,
in f a c t the whole
s t a t e of C a l i f o r n i a ,
this recovery.
f u l l y shared in
I
I n
I
Incomes of i nd i v i duaIs|
in Cal i f orn i 0 L/ rose 62 p e r c e n t from
1935 to 1939,
as a g a i n s t 53 pe r c e nt
..... ..
-
IO
s e r i e s of Government a c t i o n s taKen to
s t a r t the
y*'w t
s of business mov i
er,
Some were d r a s t i c
what the nation needed
they turned the t i d e of the de pr es s ion.
in months the national
income was r i s i
Incomes r e c e i v e d
by i ndi vi dual s , which had dropoeri to
an annual r a t e of only
billion
in
March 1933. had recovered to
i I I ion by the enc
i r
As the recovery gained momentum
further
improvement oc c ur r ed.
At the
reduced to
less than hal f of the
1929 volume.
In t h i s c r i t i c a l
situation,
i t was
imperative t h a t a f f i r m a t i v e a c t i o n be
taKen.
The need to h a l t the continuing
deoression was urgent.
toKen,
By the same
i t was of prime importance that
business t rends be turned upward.
As important as t he s e o b j e c t i v e s were, |
the more fundamental problem was to
insure t h a t such a tragedy as t h i s
depression should never happen again.
You ar e a l l
f a m i l i a r with the
8
throughout the world.
I
'
i- ' :
.
Most of you remember only too well
the personal
Impact of t h a t depression
on your business,
yourself.
early
your family,
and
The bottom was reached in
1933, when the national
income
had dropped more than 50 p e r c e n t
below the 1929 l e v e l .
In March of
.
t h a t year we were in the midst of a
financial c r i s i s .
Many of our
leading i n d u s t r i e s were oper ati ng at
a small f r a c t i o n of t h e i r c a p a c i t y .
Industr i a I product i on as a whole was
I
I
I
»then t h e t o p - h e a v y marKst
s t r u c t u r e began t o f a l l
speculative
in a i l
in 1929,
it
l o s s e s had r e o e r c u s s i o n s
lines of business.
Manufacturers'
o r d e r s were c a n c e l l e d ,
wor ker s were thrown out o f employment
f a c t o r i es
c I
r e t a iI
sal
successive
d e f l a t i o n and d e p r e s s i o n were s e t
in
wealth * as in the stocK marnet.
In
jn New YorK City reached the huge
total
of $ 8 . 5 b i l l i o n ,
the buI k of
which was supplied by c o r p o r a t i o n s
and other non-banK s o u r c e s .
An
e s s e n t i a l p a r t of the n a t i o n ’ s
strength - -
essential
in maintainin
the n a t i o n ’ s p r o s p e r i t y - - was thus
d i v e r t e d into unproductive stocK
- 5 one - -
for t h i s p r o s p e r i t y to
continue.
There was no e v i d e n c e o f
u nb a l a nc e d c o n d i t i o n s
( f ieId.
)Commodity
s t a b l e for several
in t h e b u s i n e s s
p r i c e s had been
years,
and
commod i t y s o e c u I a t i on was a t a low
level.
Ther e was no e x c e s s
a c c u mu l a t i o n o f
inventories,
and
no undue e x o a n s i o n of c r e d i t f o r
business purposes.
U n f o r t u n a t e I y , however,
a belief
had been g a i n i n g ground f o r s e v e r a l
y e a r s t h a t the quiCK and eas y
i p
- 4 figure,
even thougn i t had been
running s u b s t a n t i a l l y above the
peak of the f i r s t f o r Id War.
National
income reached the hi ghest level
h i s t o r y up to t h a t time.
industrial
in
New
pr ocess es and new
inventions were helping t o maintain
a st r ong volume of consumer demand.
Labor was p r a c t i c a l l y f u l l y employed,
and c o r p o r a t e p r o f i t s were higher
than ever bef or e.
in 19 2 3 t h e r e was every reason --J
or,
at l e a s t ,
every reason but
i
i
'6
!
.; ''cj- ;
—
3 *•
t r u e not only in measures expressed
in terms of d o l l a r s .
also
It
is t r u e
in terms of the a c t u a l
of goods - -
production
in the volume of things
t h a t people can buy.
Let me remind and warn you,
however, t h a t twenty year s ago we
could have made t h i s same s t at ement ,
.
p r a c t i c a l l y word f o r word.
Although
the economic l e v e l s then were lower,
they were r ec or d highs up to t h a t time,
in t h a t year,
1928»
industrial
production r o s e to a then rec or d
high plat eau of economic we l l - b e i n g ,
and looking to horizons of business
o p p o r t u n i t i e s yet untapped, we are
prone to f o r g e t the depth of the
v a l l e y of depression from which we
have so r e c e n t l y ascended.
It
is e s s e n t i a l
in good times to
remember the bad times,
l e s t we
wander a i m l e s s l y into economic
depression again.
There is no
question t h a t the United S t a t e s
is today e xper i enc i ng the g r e a t e s t
p r o s p e r i t y in i t s h i s t o r y .
This is
There could not be a more
a p p r o p r i a t e time to survey the
economic scene than now, when our
national
income and nat i onal
p r o s p e r i t y a r e a t the highest
in h i s t o r y .
levels
Nor is t h e r e a more
I
a p p r o p r i a t e place for a d i s c u s s i o n
of t h i s s u b j e c t than here in one of
I
the f a s t e s t - g r o w i n g a r e a s in the
I
United S t a t e s .
I have chosen d e l i b e r a t e l y to
call
t n i s a t a l k on "The Economic
Scene,*1 Standing on the pr esent
The f o l l o w i n g a d d r e s s by S e c r e t a r y S n y d e r b e f o r e t h e
L o s A n g e l e s Town H a l l , B i l t m o r e B o w l, B i l t m o r e H o t e l ,
Los A n g e le s , C a l i f o r n i a , i s sc h e d u le d f o r d e l i v e r y a t
1 P . M» L o s A n g e l e s t i m e ? M onday, O c t o b e r 2 5 , 19 4 8 > and
i s f o r r e l e a s e a t t h a t time»""“
THE ECONOMIC SCENE
t f o
TREASURY DEPARTMENT
Washington
(The following address by Secretary Snyder before the
Los Angeles Town Hall, Biltmore Bowl, Biltmore Hotel,
Los Angeles, California, is scheduled for delivery at
1 Pomp, Los Angeles time, Monday« October 25» 19¿8» and
is for release at that time,,)
THE ECONOMIC SCENE
There could not be a more appropriate time to survey the economic
scene than now, when our national income and nation?«! prosperity are
at the highest levels in history* Nor is there a more appropriate place
for a discussion of this subject than here in one of the fastestgrowing areas in the United States*
I have chosen deliberately to call this a talk on »The Economic
Scene*» Standing on the present high plateau of economic well-being,
and looking to horizons of business opportunities yet untapped, we are
prone to forget the d epth of the v alley of depression from which we
have so recently ascended*
It is essential in good times to remember the bad times, lest we
wander aimlessly into economic depression again* There is no question
that the United States is today experiencing the greatest prosperity
in its history* This is true not only in measures expressed in t erms
of dollars* It is true also in terms of the a ctual production of
goods — in the volume of things that people can buy*
Let me remind and warn you, however, that twenty years ago we
could have made this same statement, practically word for word* Although,
the economic levels then were lower, they were record highs up to that
tirneo In that year, 1928, industrial production rose to a then record
figure, even though it had been running substantially above the peak of
the first World War* National income reached the highest level in
history up to that time* New industrial processes and new inventions *
were helping to maintain a strong volume of consumer demand* Labor was
practically fully employed, ana corporate profits were higher than ever
before*
In 1928 there was every reason — or, at least, every reason but
one« — for this prosperity to continue* There was no evidence of
unbalanced conditions in the business fi$ld> Commodity prices had been
stable for several years, and commodity speculation was at a low level*
There was no excess accumulation of inventories, and no undue expansion
of credit for business purposes*
S-8ÇQ,
S»
- 2 -
Unfortunately, however, a belief had been gaining ground for several
years that the quick and easy way to wealth was in the stock market* In
effect, the legitimate and necessary business of dealing in stocks was
allowed to develop into a huge gambling enterprise© Brokers'T loans in
New York City reached the huge total of $8« 5 billion, the bulk of which
was supplied by corporations and other non— bank sources# An essential
part of the nation’s strength — essential in maintaining the nation’s
prosperity — was thus diverted into unproductive stock speculation«
When the top-heavy market structure began to fall in 1929, it swept
the nation’s economy down,a steep, barren and rocky road# Severe
speculative losses had repercussions in all lines of business«. Manu
facturers’ orders were cancelled, workers were thrown out of employment,
factories were closed, retail sales fell off, and successive waves of
deflation and depression were set in motion* Their effects were felt
throughout the v/orld*
Most of you remember only too well the personal impact of that
depression on your business, your family, and yourself# The bottom was
reached in early 1933, when the national income had dropped more than
50 percent below the 1929 level* In March of that year we were in the
midst of a financial crisis* Many of our leading industries were op
erating at a small fraction of their capacity* Industrial production as
a whole was reduced to less than half of the 1929 volume*
In this critical situation, it was imperative that affirmative
action be taken« The need to halt the continuing depression was urgent*
By the same token, it was of prime importance that business trends be
turned upward* As important as these objectives were, the more funda
mental problem vfas to insure that such a tragedy as this depression
should never happen again*
You are all familiar with the series of Government actions taken
to start the wheels of business moving© Some were drastic* However,
they accomplished what the nation needed — they turned the tide of the
depression*
Within months the national income was rising* Incomes received by
individuals, which had dropped to an annual rate of only $4-3 billion in
March 1933, had recovered to $50 billion by the end of that year*
A.' ' i.
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As the recovery gained momentum, further improvement occurred* At
the end of 1939 the annual rate of income had risen to $76 billion© And
when we entered the war in December 1941 it stood at $106 billion*
This was substantially higher than even the 1929 level* Today, at $215
billion, the rate is more than double what it was on Pearl Harbor Day*
S-890
- 3 -
Los Angeles, in fact the whole state of California, fully shared in
this recovery. Incomes of individuals in California rose 62 percent
from 1933 to 1939* as against 53 percent for the nation as a whole#
From 1939 to 1947, aided by your phenomenal growth in population, the
increase for California was 219 percent, against 169 percent for the
United States,
The pronounced shift of industry to the Los Angeles area in recent
years has been impressive, This is a visible part of the great develop
ment of an industrial empire on the Pacific Coast.
During the war, Los Angeles county handled $11 billion of war
contracts, ranking second among war production centers# Because of the
many advantages offered by your great State, it is not surprising that
many of the war workers, plus vast numbers of servicemen who learned to
know this area during the war, have decided to make Southern California
their home.
Population estimates show that California leads the nation in
growth since the last census. From 1940 to 1948, California has gained
3 million people. This was an expansion of 45 percent, which, compared
with 11 percent for the nation as a *ihole shows an increase of 34 per
cent over the rest of the United States#
In view of the increased responsibilities imposed by this growth
in population, the people of California have a particular stake in
measures which have been taken to safeguard the national economy against
another depression. These measures tod^r protect you in Los Angeles, as
they protect people throughout the nation. In part they are responsible
for the fact that now, at the beginning of the fourth postv/ar year,
business activity continues sound and substantial#
Contrast this with the situation after the first World War© Shortly
thereafter, business became unbalanced by widespread commodity specu
lation, The postwar peak was reached within a year and a half after
the war ended.
It is believed that there are two ways to fortify the nation
against a depression — to cushion its effect should the blow come.
One is to prevent speculative excesses —— over-buying, over—borrowing
and over—building. The other is to mitigate the potential damaging
effects by maintaining purchasing power, and by providing security to
people, particularly during the early stages of a business recession,
Tb© national program of this government for economic security
involves both types of protection#
S— 890
-4 -
Under the Securities Exchange Act of 193A* the Federal Reserve
Board is authorized to limit the use of credit ih the security markets#
This provides a means fof discouraging excessive stock speculation#
Under the protective operations of the Securities and Exchange Cora?mission* the public is safe guarfled to a large extent* against manipu
lative practices and misleading information in security markets# Some
what similar protection in the commodity markets is provided by the
Commodity Exchange Authority#
In order to aid in the control of inflation* regulations to restrict
the expansion of credit in the sale of durable consumer goods have
recently been reinstated#
Government fiscal policy has been directed against price inflation
by-restricting credit* and by directing budget surpluses toward reducing
the money supply.
Strong measures have been passed which will retard a recession in
its early stages and minimize its effect* Under the provisions of
Social Security legislation* we now have Federally—sponsored unemploy
ment insurance administered by the states# This should aid materially
in maintaining purchasing power during any business setback#
The Federal Deposit Insurance legislation protects the savings of
depositors* and greatly improves the stability of the banking structure#
ISB.nimum wage laws* and legislation for protecting the rights of
labor* which have broadened the use of collective bargaining in wage
negotiations* have served to strengthen and stabilize the entire wage
structure# They have materially reduced the danger of a decline in
wage earners1 incomes and purchasing powerc
The position of agriculture has been protected by safeguards
against excessive declines in prices of many crops«»
These measures* and various others with similar objectives* have
been effective in- two ways: They have greatly restricted any tendency
for our economy to get but of balance* and they have contributed to a
general feeling of underlying security such as we have seldom before
experienced#
As we stand on our present high economic plateau* let us examine
our surroundings# Apart from the effect of rising prices* our economy
has been stabilized for about a year around the present full employ
ment level#
S-899
- 5 ~
As w g look over our cities and farms* we see a high-level economy
in action* with r ecord employments with business highly prosperous* with
living standards unequalled iti the history of this country or in the
world#
From, time to time since the end of the war there have been general
expectations of a coming depression© Maiy have predicted that ”it can’t
last»” But the high level of prosperity has lasted#
Today we see very little evidence of weakness in the economic
structure* apart from the price situation© It is true that business
dropped off this summer in textiles and some other soft goods0 However,
this type of industry adjustment* with no appreciable effect on the
general trend* represents a normal corrective adjustment©
In thè s tock market, trading has remained rational© Activity in
the commodity markets is no greater than normal© Business men have
been cautious in expanding inventories©
Had it not been for the active measures taken by this government
to prevent an unbalanced economy* conditions might well have been
different© With record-breaking corporate profits, more than double
those of 1929* a speculative boom in the s tock market might again have
undermined the business structure© But we have had no such e xperxence©
In the commodity markets* no speculative boom has developed*
despite the huge demand for goods and materials during the war* and the
persistent shortages which have lasted up to the present* Thus the
possibility of a cumulative liquidation of speculative holdings and
inventories* such as occurred in 1920* is "greatly minimized©
Some people are apprehensive about the permanence of our present
business levels solely because they are so high» But we are in a growing
economy© The levels of 1929 are much too low for us today© We have
25 million more people than in 1929© Our demands have been increased
by new products and services* by higher production efficiency* by more
rapid transportation© You in Los Angeles well know that old standards
quickly bec<.me obsolete in a growing community©
If we wish our present level of prosperity to continue we must be
constantly on the alert -.to protect it© We must resist any tendency to
make the same serious mistakes as were made in 1928 and 1929* and in
earlier business booms© Of greatest importance now is the need for
combatting inflationary pressures© The Government has only limited
weapons for this battle* but I assure you that every weapon available
is being used©
S-890
- 6 -
Budget surpluses during the past two years have been our most
effective fiscal weapon, enabling us to reduce inflationary pressures
through paying off part.of the Federal debt« This has been reflected in
a. reduction in the money supply*
I stated, when I took over the duties of Secretary of the Treas—
uary^ that it was the responsibility of the Qovernment to reduce its
expenditures in every possible way, and to achieve a balanced budget,
or betteri It was a great satisfaction, therefore, to announce at
the end of the fiscal year just passed, that we had achieved by far
the largest surplus in our history-«— $8,419,000,000# But, unfortu
nately,,. due to the tax— cut, we shall have no budget surplus available
as an anti-inflation weapon in the current fiscal year«
If we are to be successful in maintaining our present prosperity,
the need for continued restraints on speculation, excessive credit
expansion, price inflation, and other developments that threaten an
eventual depressing effect on business, must be recognized and widely
supported#
With our people on the alert to protect their heritage — to
defend themselves against the recurring cycles of booms and depressions
that have plagued our nation since its earliest days — a brilliant
future is in prospect*
Our factories have not yet been able to meet the demand for new
automobiles, farm machinery, freight cars, electric power equipment,
steel, pipelines, and many other things« New houses, new schools and
highways, new electric capacity, aid other capital equipment are
urgently needed* Our population is growing, and a still greater
expansion in these facilities wall be called for in coming years#
Television, plastics, and other new inventions are attracting an
increasing public demand#
With this reserve power in our national economy, we have an
unusually favorable basis for continued prosperity* If we can avoid
the mistakes of the past — if we can guard against excesses that
might throw our economy out of balance — I feel that vie have an
unparalleled prospect before us# Through the cooperation of all
groups in moderation and self-restraint we can make this prospect a
reality«
0O0
S— 890
- 46 -
Ìli
r e c o v e r y of t he * o r I d , we can
entrench ourselves
firmly
in th
c o n d i t i o n s under which we he r e
c o n t i n u e t o grow and p r o s p e r .
d e g r e e on the devel ooment o f
i n t e r n a t i onaI
trade.
Our
industries
and consumer s need f o r e i g n m a t e r i a l s
and p r o d u c t s wh i l e o t h e r c o u n t r i e s
have a s g r e a t a need f o r what we
p r o duc e .
Our program o f economi c
a s s i s t a n c e to
therefore,
t he
foreign countries,
i s an i n t e g r a l
factor
in
l o n g - r a n g e economi c and
political
States.
i n t e r e s t o f t h e Uni t e d
To t h e e x t e n t
t o which we
c an p r o p e r l y a i d t he economi c
■
0
- 44 an a c c e l e r a t e d p a c e ,
such c i r c u m s t s n c e s
t he r e s u mp t i o n of
economi c
0
ft'e can under
I ook f or war d t o
InternationaI
l i f e on a normal
plane.
The Uni t e d S t a t e s f o r e i g n
a s s i s t a n c e program i s d i r e c t e d
toward t he r e a l i z a t i o n o f a s t a b l e
wor l d.
The Uni t e d S t a t e s c a n n o t
r e t u r n t o a p o s i t i o n of e i t h e r
economi c or p o l i t i c a l
isolation.
Our own l e v e l s o f p r o d u c t i o n and
employment depend t o a c o n s i d e r a b l e
%
mi ni mi ze t he
p r e s e n t economi c
liticai
s
In
p r e o c c u p a t i o n wi th t h e
p r e s e n t s ho ul d n o t o b s c u r e
that
in our pos t war programs we a r e
build
five years,
10 y e a r s ,
future.
or
but f o r our permanent
The n a t i o n s o f t h e worl d
a r e e n d e a v o r i n g wi th our a s s i s t a n c e
t o a c c o mp I i s h economi c r e c o v e r y .
peace
is maintained,
that their
If
we can e x p e c t
r e c o v e r y wi l l
continue at
o f which I have t r i e d
t he U. S.
to j
has t a Ken t he
es t ab Ii shment of
assess,
l ead
in t h e
i n s t i t u t i o n s which
have enormous p o t e n t i a l i t i e s
for
pr omot i ng worl d p e a c e and economi c
recovery.
These
Uni t e d N a t i o n s ,
if
include the
t h e 1n t e r n s t i ona I
o n e t a r y Fund and t he
1n t e r n a t i orsa I
3anK f o r d e c o n s t r u c t i o n and
Devel opment and t he pr opos ed
internationaI
it
over t he
is
Trade O r g a n i z a t i o n .
naturai
t o be di s t u r b e r ò
i mmediate s i t u a t i o n .
T
•’
m
|
B
i * 1
*
c ount r i es whi ch l i e
a c r o s s t h e oc e an
from San F r a n c i s c o and o t h e r P a c i f i c
I
Coast p o r t s .
The f u t u r e o f our
r e l a t i o n s wi t h t h e c o u n t r i e s o f the
Far East
is o f the g r e a t e s t
I mport ance
t o t h i s s e c t i o n o f t he Uni t e d S t a t e s .
I s e e even g r e a t e r p r o s p e r i t y and
devel opment h e r e as a r e s u l t o f the
f ut ur e s t r eng the ni ng of these
r e I a t ions.
Apart from t he
financial
c o ns i d e r a t i ons whi ch. I have
a t t e mp t e d t o d e s c r i b e and t h e r e s u l t s
■
40
and economi c s t a b i l i t y
to other
s t r i f e - t o r n p a r t s o f t he Far E a s t .
The v a l u e o f our t r a d e wi t h t h e
Philippines
i s many t imes p r e - w a r ,
and d e s o i t e t he sl ow r e c o v e r y
lines,
notably sugar,
Philippine
e x p o r t s t o t h e Uni t e d S t a t e s ,
those of other
far
e x c e e de d p r e - wa r
in some
unline
eastern countries,
levels
in 1947.
I am happy t o s e e t h e
r e e s t a b I i s h m e n t and gr adual
expansion of
Ameri can c o mme r c i a l ,
banni ng and c u l t u r a l
ties
wi th t h e
fil
** J|S «*
in a sound c o n d i t i o n ,
/‘
,
substantial
partial
and a
repayment o f
t h e advance has a l r e a d y been ma de.
The r e c o v e r y o f t h e P h i l i p p i n e s ,
under s t a b l e
and d e m o c r a t i c c o n d i t i o n s ,
has been most g r a t i f y i n g .
It
is
a t r i but é t o t h e P h i l i p p i n e p e o p l e
i -<*
and t h e i r
;
leaders.
And,
! mi ght
add, t h e p r o g r e s s made i n t h e
Philippines
is
i n d i c a t i v e of t h e
Kind o f p r o g r e s s which we c an hope
f o r w i t h t h e r e s t o r a t i o n of p o l i t i c a l
38 in an economic as welI as in a
political
sense.
Subs t a nt i a l
aid is
being given to r e p a i r the damages
/
of war.
Last y e a r ,
CongressionaI
f
under s p e c i a l
authorization,
the
Re c o n s t r u c t ion Finance Corporation
made emergency loans of $70 m i l l i o n
to the P h i l i p p i n e Government to meet
the c r i s i s a r i s i n g out of the wartime
d i s r u p t i o n of i t s f i n a n c e s .
I am
happy to say t h a t the immediate
problem was met by t h i s a c t i o n .
The
fi nanc es of t h a t Government are now
\
X
y
- 37 which American aid would have
otherwise made p o s s i b l e .
Our pr esent
China aid program is designed to give
China a r e s p i t e from r a p i d economic
d e t e r i o r a t i o n , and to provide i t with
an opportunity to move to the
est abli shment o f more s t a b l e economic
conditions.
political
And f u r t h e r south,
and s o c i a l unr e s t and
t e n s i o n s a r e r e t a r d i n g economic
r e c ov e r y
in v a r i o u s a r e a s .
In the P h i l i p p i n e s ,
America has
s t r i v e n t o mane independence a r e a l i t y
measure as long as
lev ed in
p r e s e n t r e s t r i c t i o n s on normal
trade
communication,
north and south continue
Ive in
ident Truman has s t a t e d ,
sive
is to
m a K
c o n t r i b u t i o n to the s t r e n g t h of
fami I y of nations
eloped as we
In
hoped,
i t Ì ons
and she has
e
t h e r e f o r e to mane
r e c o n s t r u c t i o n and r e h a b i I i t a t ion
c o u n t r i e s today.
In each c as e the
ma i n i n d u s t r i a l a r e a s are
by p o l i t i c a l
or mi I i t a r y b a r r i e r s from
the main cen.ters of a g r i c u l t u r e and
popul at i on.
Our e f f o r t s
in Korea have been
d i r e c t e d toward meeting the b a s i c
n e c e s s i t i e s of the population of
South Korea, and in preparing the way
for
independence a f t e r a h a l f - c e n t u r y
of jjapanese r u l e .
Korea’ s economic
rec over y will be slow, and cannot be
have in o r d e r to l i v e .
time a r r i v e s ,
Until t h a t
the United S t a t e s
is
assuming t h a t o b l i g a t i o n — an
investment,
if you « i l l ,
in c r e a t i n g
the c o n d i t i o n s under which a
peaceful,
democratic s t a t e may grow
and u l t i m a t e l y assume i t s p l a c e
family of n a t i o n s .
in the
The p r o g r e s s
which has been ach i eved to date is
encouraging though t her e have been
d i s h e a r t e n i n g set-baCKS from time to
time.
Under American oc c u p a t i o n, t he
Japanese people have been endeavoring
to lay a foundation f o r a p o l i t i c a l
and economic democracy.
»
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j
:
£
■V
r
Material
-■
/ A-
aid to Japan has c o n s i s t e d of
suppIles and raw m a t e r i a l s e s s e n t i a l
to prevent d i s e a s e and unrest among
the Japanese people.
The o b j e c t
of the l a t t e r program has been to
a
p o s i t i o n where i t will be able to
pay
i t s■ ®§own
way
with
e x p o r t s for the
§|§lgf |
i if
'
.
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food and other commodities i t must
32 se d i f f i c u l t
cond i t i ons
economi c
Ives
in
would a l l e v i a t e
ï Far E a s t
t he c o n d i t i o n s
of p o v e r t y and economi c s t a g n a t i o n
f u r n i s h so f e r t i l e
i
a breeding
f o r Communism
Japan,
a d e f e a t e d power,
it d i f f i c u l t
industrial
output,
mar Ket s abroad
products
to
is
increase
and t o f i n d
i t s export
its
- 31
The main r e c i p i e n t s of r e l i
■
nd r e h a b i I i t a t ion aid in the
East have
China,
* Ì #
the
Iipo i nes,
Japan
ncluded c r e d i t s ,
grants,
f surplus p r o p e r t y .
and t r a n s
Many s p e c i a l
« S ', ; «
w a r
postwar
e made it
e x c e p t i o n a l l y d i f f i c u l t for these
c o u n t r i e s to maxe very rapid
on
and r e h a b 11i t a t ion
balance of t r ade of
the Far E as t has put l i m i t s on the
a b i l i t y of t h i s a r ea to pay for
American e x p o r t s .
The p o t e n t i a l
t r a d e of the Far East with America,
in both d i r e c t i o n s ,
t o d a y ' s volume.
is many times
e a s t e r n Asia was a t an a i l
in 19 4 ? ,
time high
but imports from t hes e
countries fell
f a r below the l e v e l s
930's.
The high
r“ “ “
•“/
level of America ' s e x p o r t s was
made p o s s i b l e in large measure by
the aid extended,
in the form
»
of loans or g r a n t s to these
countries.
Wartime d i s l o c a t i o n s ,
and s o c i a l and p o l i t i c a l
unrest
s i n c e the war have kept e x p o r t s
in
This a r e a ,
so important in
America' s f o r e i g n t rade before the
f
war, remains today a g r e a t p o t e n t i a l
source of s t r a t e g i c commodities, and
a market of tremendOfcNr^TSTWTTta111ies
f o r our expor t iferade.
These
p o t e n t i a l i t i e s can only be r e a l i z e d
if peace and steady pr ogr ess toward
the development of the
l a t e n t resources
of these c o u n t r i e s can be achieved.
The value of American e x p o r t s
to the c o u n t r i e s of southern and
fit
- 27 in the development of our southern
neighbors,
through f i n a n c i a l as well
as t e c h n i c a l a s s i s t a n c e .
America
Lat i n
may be c o nf i de nt t h a t we are
s i n c e r e l y determined to take whatever
reas onable and p r a c t i c a l measures are
within our power in order to promote
economic development and r i s i n g
st andar ds of l iving in t h a t a r e a .
The Far East s u f f e r e d from the
war no less than Europe.
Economic
d e s t r u c t i o n and s t a g n a t i o n were
linked with s o c i a l u n r e s t and
political
instability.
^
1
• 2b ”
Since the i nc ept ion of the
European Recovery Program Canada’ s
d o l l a r p o s i t i o n has been strengthened
through the r e c e i p t of d o l l a r s f o r
goods supplied to Europe under the
Recovery Program.
her
It
is noped t h a t
improved p o s i t i o n will enable
Canada to continue and pos si bl y to
i nc r e a s e her a s s i s t a n c e to Europe.
Although L a t i n America escaped
the ravages of war, we have continued
our t r a d i t i o n a l
pol i c y of cooperating
own.
Canada normally has a d e f i c i t
with the United S t a t e s which is
financed from d o l l a r s earned from
e x p o r t s to other a r e a s .
In order to
meet t h i s problem, Canada over the
\
X -J'
-v
•
l a s t year found i t necess ar y to
maintain r e s t r i c t i o n s on imports from
the United S t a t e s and a l s o to borrow
some $150 mi l l i o n in t h i s country.
Likewise i t has been n e c e s s a r y for
Canada to r e a p p r a i s e her p o s i t i o n
with r e s p e c t to extending f o r e i gn
cred i t s .
%v
e x p o r t s
were 130 percent of 1938 as
compared with 46 percent in 1946.
With Recovery Program a s s i s t a n c e ,
Britain
is redoubling i t s e f f o r t s to
achi eve i t s production and e xpor t
goals.
Our neighbor to the North,
Canada,
has been most generous in
extending post war a s s i s t a n c e to the
war disrupted economies of Europe.
This a s s i s t a n c e has been extended in
s p i t e of the f a c t t h a t Canada has a
United S t a t e s d o l l a r problem of her
e x p o r t s t o 175 per cent of prewar
l e v e l s in order to achieve prewar
standard of Ii v ’
Boldly f a c i ng t h i s t a s k ,
Britain
is giving e x p o r t s the f i r s t p r i o r i t y
in nat i o na l producti on,
r e g a r d l e s s of
the a u s t e r i t y which t h i s r e q u i r e s a t
home.
rations
At the pr esent time,
British
in many e s s e n t i a l s are below
wartime l e v e l s .
The r e s u l t s of the
e x p o r t drive are c l e a r l y shown in the
f a c t t h a t for the f i r s t half of
1948
i*'
-
22
-
c o n t r i b u t e d g r e a t l y to the working
out of economic and f i n a n c i a l
r e l a t i o n s h i p s between Germany and
other European c o u n t r i e s .
As for the B r i t i s h ,
they f a c e
a g r e a t task in r e o r i e n t i n g t h e i r
economy.
B r i t a i n must e xpor t to live.
The magnitude of the task with which
she was confronted a t the end of the
war in r e b u i l d i n g her i n t e r n a t i o n a I
t r a d e p o s i t i o n was unprecedented,
is est imated t h a t B r i t a i n must
i nc r e a s e the physical volume of her
it
the second q u a r t e r of 1948.
In
r e c e n t months, t h e r e has been a sharp
upturn in the production curve.
Output in such c r i t i c a l
items f o r
European r ec over y as c o a l , metals
and lumber is even higher.
To enable
these advances to be uti I ized to the
b es t advantage in f u r t h e r i n g the
pr ogr es s of the c o u n t r i e s which we
have sought to a id under the
European Recovery Program, Western
Germany has r e c e n t l y been brought into
t h i s group.
This step has al r eady
i
-
2 0
-
\'
'•
<1
•
Western Germany is a v i t a l
of the European economy.
Jg
part
Germany
has always been an important source of
raw m a t e r i a l s and manufactured goods
f o r other European n a t i o n s , as well as
a leading o u t l e t for t h e i r products.
Under the c a r e f u l guidance of our
Military Authorities
in c o o p e r a t i o n *
with those of the French and B r i t i s h ,
industrial
production in Western
Germany has r i s e n from the extreme Iy
low level of o n e - q u a r t e r of prewar to
about 40 per cent of t h a t amount in
S pi
-
19 -
such f u r t h e r ones as may be required
» î l/l be adopted.
A
t
In I t a l y ,
»hen the war ended,
i n d u s t r i a l production was a t a
virtual
standstill,
food s u p p l i e s
were s e r i o u s l y d e f i c i e n t ,
was r i f e ,
unemployment
and i n f l a t i o n rampant.
The
interim aid granted by the United
■
s
>>
'
A'A'« A | 1
<-/%*
S t a t e s to I t a l y has helped to a v e r t
s t a r v a t i o n , and a r r e s t
inflation.
Industry has speeded up although the
unemployment problem s t i l l
to be solved.
remains
ô
-
18
€ I
-
has been p a r t i c u l a r l y s t r i k i n g .
of t h i s development was made possible
only through the U. S.
interim aid
which the French r e c e i v e d p r i o r to
the adoption of the European Recovery
Program.
A major o b s t a c l e t o f u r t h e r
French rec over y has been the f ai lure
to solve the problem of
inflation.
I n f l a t i o n has a l s o c o n t r i b u t e d to
her p o l i t i c a l
instability.
The
p r e s e n t French Government has adopted
.
some d r a s t i c measures to cope with
this d iffic u lty .
I t is hoped t h a t
. . . .
-
0 1
17 -
o t her p a r t s of Europe.
At the other
end of the s c a l e a r e such
c o u n t r i e s as A u s t r i a ,
to which EGA
a s s i s t a n c e has had to be wholly
by g r a n t .
Even in such c o u n t r i e s ,
-
/
notable improvement has oc c ur r ed.
French i n d u s t r i a l
producti on,
ft
which by the end of the war had
f a l l e n to 35 p e r c e n t of the prewar
level,
has recovered completely and
r i s e n to about 10 percent above t ha t
level.
Improvement in coal
proauction and o t h e r b a s i c i n d u s t r i e s
In r e c e n t months but they are s t i l l
s u f f i c i e n t to meet only a small p a r t
of import requ Irements.
0
I -
European
I ;a '
c o u n t r i e s ar e developing an
intra-European payments plan designed
t o i n c r e a s e t r a d e among themselves
and reduce t h e i r dependence on the
United S t a t e s .
The pr o gr e s s of r e c o v e r y v a r i e s
c o ns i der abl y from country to country.
Belgium is now in a r e l a t i v e l y
s t r o n g i n d u s t r i a l / p o s i t i o n and has
a c o n s i d e r a b l e e x p o r t surplus to
ij
-
15
c o u n t r i e s has grown about
10 pe r c e n t ,
a s s e t s formerly a v a i l a b l e f o r
f i nanc i ng imports have been l o s t ,
and much of the i n d u s t r i a l output
which would normally flow into the
stream of consumption is needed to
r e p a i r the war-time
physical
legacy of
damage and d e s t r u c t i o n .
A g r i c u l t u r a l production in 1948»
though c e r t a i n to exceed s u b s t a n t i a l
t h a t of the drought year 1947,
however, expected to f a l l
prewar l e v e l .
is,
below the
Exports have expanded
-
1 4 -
s i n e e been achieved, rec over y has
continued s t e a d i l y .
By the midale of t h i s year
inoustrial
j
production in Western
t u r o p e , excluding Germany, had
expanded about
15 percent above
prewar.
With Germany included,
figure
is s l i g h t l y below prewar.
the
Production must r i s e much more before
turope can regain i t s prewar standard
of l i v i n g .
The population of
Wes t e r n Germany and t h e p a r t i c i pat i ng
g a v e a new Impetus to
inflation.
During 1947 European c o u n t r i e s
y .
maintained t h e i r e a r l i e r gains in
y
y
y .■:■#'P)
:■
f
production ana t rade only by
depl et i ng f u r t h e r t h e i r al r e a dy
small f i n a n c i a l
reserves.
The p r o s p e c t i v e adoption of
the European necovery Plan had
ps ychologi cal e f f e c t s which gave an
immediate stimulus to European
production.
» ith the adoption of
the plan and the p r o g r e s s i v e increase
in the flow of s uppl i es t h a t has
yyKy;>
.
' .■ ■ '
The severe winter of
1346-47
brought a temporary setback in
European Recovery.
critical
Shortages were
and t h e r e was v i r t u a l
exhaustion of c r e d i t s and aid from
the United S t a t e s .
rising
Meanwhile,
import p r i c e s were making i t
more ana more d i f f i c u l t f o r Europe
to obtain foods and other e s s e n t i a l
supp 1 i e s .
The severe winter of ’ 4 6 - 4 7
was followed by a drought which
i n t e n s i f i e d the food s hor t age and
recovered
level - - a remarkable acn ievement in
view of the d e s t r u c t i o n of p r o p e r t y ,
d e p l e t i o n of s u p p l i e s ,
of t r a n s p o r t a t i o n ,
t h e end of
producti on,
.the war.
and breakdown
that existed at
Agricultural
t h o u g h r e t a r d e d by lack
of f e r t i l i z e r ,
had r i s e n s u b s t a n t i a l l y
S e v e r a l c o u n t r i e s had taken important
measures to c o n t r o l
c u rta il
i n f l a t i o n ana to
the b l a c k market o p e r a t io n s
t h a t had developed as a r e s u l t of
shor t a g e s .
loans through r e g u l a r
investment
cnanneIs.
1 b el i eve you nouId be interested
in a b r i e f survey of the pr o gr e s s of
European R e c o v e r y .
ffh i le we have
made a s u b s t a n t i a l and e s s e n t i a l
contribution,
i t must be recognized
t h a t the^accomp I i shrnen t s r e f l e c t also
trie r e s i l i e n c e ,
■ V-/
the de t e r mi n a t i o n .
and the sheer hard work of the
European people themselves.
ena of 1348 i n d u s t r i a l
Western Europe,
By the
output in
except Germany, had
- 9 EGA Mission in each r e c i p i e n t country
to see t h a t the aid is e f f e c t i v e l y
c a r r i e d out.
The program is
designed mainly to provide European
c o u n t r i e s with goods e s s e n t i a l
their recovery.
it
to
is our hope t h a t
by 1952 they will be in a p o s i t i o n
to f i n a n c e t h e i r major import
requirements through t h e i r e x p o r t s
of goods and s e r v i c e s .
We a l s o
hope t h a t t h e i r economic s i t u a t i o n
will have improved s u f f i c i e n t l y to
enable them to obtain supplemental
-
8
-
/'
d e s c r i p t i o n of the machinery
e s t a b l i s h e d to admi ni st er the Recovery
'
'■ •■'x p
Program.
Congress has provided a
vehicle
in the Economic Cooperation
Adm i n i s t r a t i on.
essential
As you know, the
elements are ( I ) a c e n t r a l
ECA a d m i n i s t r a t i o n
in Washington,
( 2) an Organization f o r European
Economic Cooperation in P a r i s , made
up of r e p r é s e n t â t ives of the European
'{*
c o u n t r i e s p a r t i c i p a t i n g in the
program,
(3) a U. S. Special
R e p r é s e n t â t ive in Europe and ( 4) an
01
- 7 _
provided for the most immediate
and p r e s s i n g needs of the r e c i p i e n t
c o u n t r i e s and has s t a r t e d many of
them well on the road to economic
r e h a h i i i t a t ion.
Following d e t a i l e d s t u d i e s by
♦
the Administration in 1947 of
European needs and of our a b i l i t y to
f u r n i s h ai d without s e r i o u s
impact
upon our own economy. Congress passed
the Foreign A s s i s t a n c e Act.
This
launched the Economic Recovery Program
I need not e n t e r into a lengthy
,
m
I
é m
d i s t u r b our own economic
even drag us into war.
l i f e and
We know t hat
a healthy t r a d e with other n a t i o n s
is e s s e n t i a l
f o r the maintenance of
our own standard of l i v i n g .
We are
convinced t h a t communism breeds in
c o u n t r i e s where hunger and di s e a s e
predominate and where industry
is
paralyzed through lack of s u p p l i e s .
Tyranny is unl i ke l y to take r o o t
and f l o u r i s h where people are well
fed, healthy and prosperous.
Our f o r ei gn a s s i s t a n c e has
Many of tne c o u n t r i e s of the world
s u f f e r e d g r e a t physical d e s t r u c t i o n ,
and were impoverished by the
long
drain on t h e i r r e s o u r c e s .
In sucn a world the United States
s t a n a s out in st r ong r e l i e f .
the c h a l l e n g e ,
Facing
we have launched
s u o s l a n t i a i programs of f o r e i g n aid.
Our motives a r e ,
who I i y u n s e l f i s h .
that
of c o u r s e , not
$e a r e well aware
we cannot l ive in i s o l a t i o n from
the r e s t of the world.
1© know t h a t
developments abroad may profoundly
î
as a ma t e r i a l c o n t r I b u t Î on to
#
our f or ei gn
is one t o ‘ Î
I
n
♦
is
both our f a i t h
and the democratic
dest iny
o u r s e l v e s and our f t I
endeavor may come a
A
s a t i s f y i n g answer to those s
complained t h a t s p i r ?tuaI progr ess
. ft
by mankind seemed to be r e t a r d e d .
The r e c e n t war
of the world in economic p r o s t r a t i o n
.
f
call
'
:
-
i V
3
...........
-
them tremendous a d v i s e d l y .
No
one would question t h a t the progress
of our f or ei gn a s s i s t a n c e program is
linked with our economic a n t i c i p a t i o n s
f o r tomorrow.
The program may spell
l a s t i n g peace;
i t may go f a r toward
making p o s s i b l e the r e s t o r a t i o n of a
we I I-baIanced worfd t r a d e ; i t may
so r e i n f o r c e present
internationaI
c ooper at i on t h a t none will dare
challenge that strength
in the years
to come.
We ar e making a psychologi cal
■ ' I
-
2
-
few in these days of g r e a t n at i o nal
and i n t e r n a t i o n a l
ur g e nt l y c a l l
problems which
f o r public understanding
My d i s c u s s i o n concerns American
leadership in the world of today, with
p a r t i c u l a r r e f e r e n c e to our
leadership in the r e b u i l d i n g of those
g r e a t a r e a s which were laid waste
by the war.
That rebui I di ng e f f o r t ,
the g r e a t e s t c o o p e r a t i v e peacetime
undertaking in h i s t o r y ,
holds
tremendous p o s s i b i l i t i e s for the
f u t u r e welfar e of t h i s n a t i o n .
I
*
ill
I always enjoy v i s i t i n g
San F r a n c i s c o .
My pr es ent journey
to the P a c i f i c Coast is made doubly
enjoyable by the opportunity you
have given me to address the
Commonwealth Club and to meet
with the business and i n d u s t r i a l
l eader s of the Bay Area who c o n s t i t u t e
i t s membership.
This Club s e r v e s C a l i f o r n i a and
America as a major forum f o r the
d i s c u s s i o n of public i s s u e s .
numbers of such forums are a l l
The
too
|
TREASURY DEPARTMENT
Washington
The f o l l o w i n g a d d ress b y S e c r e t a r y S n y d e r
b e fore the C o m m o n w e a l t h Clu b of California,
B e l l e v u e Hotel, S a n F r a n c i s c o , California,
is s c h eduled f o r d e l i v e r y at 12:45 P.M. San
F r a n c i s c o time, W e d n e s d a y , Ó c t o b e r 27, 1 9 ^ B ,
and is f or re l e a s e Jat that t i m e .
OUR F O R E I G N A I D P R O G R A M
I alwa y s e n j o y visit i n g S a n F r a n c i s c o .
M y p r e s e n t journey
to the P a c i f i c Coast is m a d e d o u b l y e n j o y a b l e b y the o p p o r t u
n i t y y o u h a v e g i v e n m e to ad d r e s s the C o m m o n w e a l t h C l u b and to
mee t w i t h the b u s i n e s s and i n d u s t r i a l leaders of the B a y A r e a
w ho cons t i t u t e its m e m b e r s h i p .
This Club serves C a l i f o r n i a and A m e r i c a as a m a j o r f o r u m
f or the d i s c u s s i o n of p u blic issues.
The n u m b e r s of such
forums are all too f e w in these days of g r e a t n a t i o n a l and i n
tern a t i o n a l p r o b l e m s w h i c h u r g e n t l y call fo r p u blic u n d e r s t a n d
ing.
M y d i s c u s s i o n concerns A m e r i c a n l e a d e r s h i p in the w o r l d
of
today, w i t h p a r t i c u l a r r e f e r e n c e to our l e a d e r s h i p in the r e
b u i l d i n g of those g r e a t areas w h i c h wer e laid w a ste b y the war.
That r e b u i l d i n g effort, the g r e a t e s t c o o p e r a t i v e p e a c e t i m e
u n d e r t a k i n g in history, holds t r e m endous p o s s i b i l i t i e s f o r the
future w e l f a r e of this nation.
I call t hem t r e m e n d o u s a d v i s
edly.
No qne w o u l d q u e s t i o n that the p r o g r e s s of our f o r e i g n
a s s i s t a n c e p r o g r a m is linked w i t h our e c o nomic a n t i c i p a t i o n s
for tomorrow.
The p r o g r a m m a y spell l a s ting peace; it m a y go
f ar toward m a k i n g p o s s i b l e the r e s t o r a t i o n of a w e l l - b a l a n c e d
w o r l d trade; it m a y so r e i n f o r c e p r e s e n t i n t e r n a t i o n a l c o o p e r
a t i o n that n o n e will d a r e cha l l e n g e that s t r e n g t h in the years
to come.
W e are m a k i n g a p s y c h o l o g i c a l as well as a m a t e r i a l c o n
t r i b u t i o n to our f o r e i g n aid effort.
This is true b e c a u s e the
w h ole u n d e r t a k i n g is one to i m p l e m e n t b o t h our f a i t h in d e m o c
racy, and the d e m o c r a t i c w a y of w o r k i n g out a w o r t h y d e s t i n y
S-891
2
f or our s e l v e s and our f o l l o w men.
Out of the w h ole e n d eavor
m a y come a s a t i s f y i n g a n s w e r to those wh o have c o m p l a i n e d that
spiritual p r o g r e s s b y m a n k i n d seemed to be retarded.
The -^recent w a r left m a n y parts of the w o r l d in e c o nomic
prostration.
M a n y of the c o u n tries of the w o r l d su f f e r e d g r eat
ph y s i c a l destruction,, and wer e i m p o v e r i s h e d b y the long d r a i n
on t h eir resources.
I n such a w o r l d the U n i t e d States stands out in strong r e
lief.
F a c i n g the challenge, we h ave l a u n c h e d subs t a n t i a l p r o
g r a m s of f o r e i g n aid.
Our m o t i v e s are, of course, not w h o l l y
unselfish.
We are well a w a r e that we cannot live in i s o l a t i o n
f r o m the rest of the world.
W e k n o w that d e v e l o p m e n t s a b r o a d
itt&y p r o f o u n d l y d i s t u r b our own e c o nomic life and eve n drag us
int o war.
W e k n o w that a h e a l t h y trade w i t h o t her n a t i o n s is
es s e n t i a l fo r the m a i n t e n a n c e of our own s t a ndard of living.
W e are c o n v i n c e d that c o m m u n i s m breeds in countries w h ere '
h u n g e r and d i s e a s e p r e d o m i n a t e and w h e r e i n d u s t r y is p a r a l y z e d
t h r o u g h l a c k of supplies.
T y r a n n y is u n l i k e l y to take root and
f l o u r i s h w h e r e p e o p l e are well fed, h e a l t h y and prosperous.
Our f o r e i g n a s s i s t a n c e has p r o v i d e d f or the m o s t im m e d i a t e
and p r e s s i n g n e e d s of the r e c i p i e n t countries and h as started
m a n y of them well on the roa d to e c o n o m i c r e h a b i l i t a t i o n .
F o l l o w i n g d e t a i l e d studies by the A d m i n i s t r a t i o n in 1947
of E u r o p e a n n e eds and of our a b i l i t y to f u r n i s h aid w i t h o u t
serious impact upo n our own economy, C o n g r e s s p a s s e d the F o r eign A s s i s t a n c e Act.
This l a u n c h e d the E c o n o m i c R e c o v e r y P r o
gram .
..
I ^ n e e d not e n t e r i nto a l e n g t h y d e s c r i p t i o n of the machinery
e s t a b l i s h e d to a d m i n i s t e r the R e c o v e r y Program,
C o n g r e s s has
p r o v i d e d a ve h i c l e in the E c o n o m i c C o o p e r a t i o n A d m i n i s t r a t i o n .
As y o u know, the es s e n t i a l e l e m e n t s are (1) a central E C A a d m i n
i s t r a t i o n in W a s h i n g t o n , (2) an O r g a n i z a t i o n f o r E u r o p e a n E c o
n o m i c C o o p e r a t i o n In Paris, m a d e up of r e p r e s e n t a t i v e s of the
E u r o p e a n countries p a r t i c i p a t i n g in the p r o g r a m (3) a U. S.
Special R e p r e s e n t a t i v e in E u r o p e and (4) an E C A M i s s i o n in each
r e c i p i e n t c o u n t r y to see that the aid is e f f e c t i v e l y carried
out.
The p r o g r a m is d e s i g n e d m a i n l y to p r o v i d e E u r o p e a n
countries w i t h g o o d s ess e n t i a l to t h eir recovery.
It is our
hope that b y 1952 the y will be in a p o s i t i o n to f i n a n c e their
major^ import r e q u i r e m e n t s t h r o u g h t h e i r e x p orts of g o o d s and
services.
W e also h o p e that t h e i r e c o n o m i c s i t u a t i o n will
have i m p r o v e d s u f f i c i e n t l y to enable t hem to o b t a i n s u p p l e m e n t a l
loans t h r o u g h r e g u l a r i n v e s t m e n t channels.
I b e l i e v e y o u w o u l d be i n t e r e s t e d in a b r i e f s u r v e y of the
progress of E u r o p e a n Rec o v e r y ,
W h i l e we h a v e m a d e a subs t a n t i a l
and e s s e ntial contribution, it m u s t be r e c o g n i z e d that the
S-891
- 3 -
a c c o m p l i s h m e n t s r e f l e c t a lso the r esilience, the d e t e r m i n a
tion, and the sheer h a r d w o r k of the E u r o p e a n p e o p l e t h e m
selves.
B y the end of 1946 i n d u s t r i a l output in W e s t e r n Europe,
except Germa n y , h ad r e c o v e r e d to s u b s t a n t i a l l y the p r e w a r
level -- a - r e m a r k a b l e a c h i e v e m e n t in v i e w of the d e s t r u c t i o n
of property, d e p l e t i o n of supplies, a n d b r e a k d o w n of t r a n s p o r
tation, that e x i s t e d at the end of the war.
Agricultural p r o
duction, t h o u g h r e t a r d e d b y l ack of fertilizer, h ad r i s e n s u b
stantially.
S e v eral countries h ad t a k e n i m p o r t a n t m e a s u r e s
to control i n f l a t i o n and to curtail the b l a c k m a r k e t o p e r a t i o n s
that h a d d e v e l o p e d as a result of shortages.
The severe w i n t e r of 19 4 6 - 4 7 b r o u g h t a t e m p o r a r y s e t b a c k
in E u r o p e a n R e c o very.
S h o r t a g e s wer e critical and there was
v i r tual e x h a u s t i o n of credits and aid f r o m the U n i t e d States.
M eanwhile, risi n g import p r i c e s were m a k i n g it m o r e a nd m o r e
d i f f i c u l t f or E u r o p e to obta i n foods and other ess e n t i a l
supplies.
The severe w i n t e r of ’46-47 was f o l l o w e d b y a d r o u g h t
w h i c h i n t e n s i f i e d the f o o d shortage and gav e a n e w impetus to
inflation.
D u r i n g 1947 E u r o p e a n c o u n tries m a i n t a i n e d their
ea r l i e r g a i n s in p r o d u c t i o n and trade onl y b y d e p l e t i n g f u r t h e r
their a l r e a d y small f i n a n c i a l reserves.
The p r o s p e c t i v e a d o p t i o n of the E u r o p e a n R e c o v e r y P l a n
h ad p s y c h o l o g i c a l e f f e c t s w h i c h gav e an imm e d i a t e stimulus to
E u r o p e a n p r o d uction.
W i t h the a d o p t i o n of the p l a n and the
p r o g r e s s i v e i n c rease in the f l o w of supplies that has since
b een achieved, r e c o v e r y has c o n t i n u e d steadily.
B y the m i d d l e of this y e a r i n d u s t r i a l p r o d u c t i o n in W e s t e r n
Europe, e x c l u d i n g Germany, had e x p a n d e d a b out 15 p e r c e n t above
prewar.
W i t h G e r m a n y included, the f i g u r e is s l i g h t l y b e l o w
prewar.
P r o d u c t i o n m u s t rise m u c h m o r e b e f o r e E u r o p e can r e
g a i n its p r e w a r stand a r d of living.
The p o p u l a t i o n of W e s t e r n
G e r m a n y and the p a r t i c i p a t i n g c o u n tries has g r o w n about 10 p e r
cent, assets f o r m e r l y a v a i l a b l e f or f i n a n c i n g i m p o r t s have b e e n
lost, and m u c h of the i n d u s t r i a l output w h i c h w o u l d n o r m a l l y
f l o w into the stream of c o n s u m p t i o n is n e e d e d to r e p a i r the
w a r - t i m e l e g a c y of p h y s i c a l d a mage and d e s t r u c t i o n .
Agricul
tural p r o d u c t i o n in 1948, t h ough ce r t a i n to e x c e e d s u b s t a n t i a l l y
that of the d r o u g h t y e a r 1947.» is, however, e x p e c t e d to fall
b e l o w the p r e w a r level.
E x p o r t s h a v e e x p a n d e d in rece n t m o n t h s
but the y are still suf f i c i e n t to m e e t only a small part of i m
port r e q u i r e m e n t s .
E u r o p e a n countries are d e v e l o p i n g an i n traE u r o p e a n p a y m e n t s p l a n d e s i g n e d to i n c r e a s e trade a m ong t h e m
selves and r e d u c e t h eir d e p e n d e n c e on the U n i t e d States.
The p r o g r e s s of r e c o v e r y varies c o n s i d e r a b l y f r o m co u n t r y
to country.
B e l g i u m is n o w in a r e l a t i v e l y strong ind u s t r i a l
S-891
4
p o s i t i o n a nd has a c o n s i d e r a b l e export surplus to o t h e r parts
of Europe.
At the other end of the scale are such countries
as Aus t r i a , to w h i c h E C A a s s i s t a n c e has ha d to be w h o l l y by
grant.
E v e n in such countries, n o t a b l e i m p r o v e m e n t has occurred.
F r e n c h i n d u s t r i a l p r o d u ction, w h i c h b y the end of the war
had f a l l e n to 35- p e r c e n t of the p r e w a r level, has r e c o v e r e d
c o m p l e t e l y and r i s e n to abo ut 10 p e r c e n t a b ove that level.
Im
p r o v e m e n t in coal p r o d u c t i o n a nd other basic i n d u s t r i e s has
b e e n p a r t i c u l a r l y striking.
M u c h of this d e v e l o p m e n t was
m a d e p o s s i b l e o n l y t h r o u g h the U. S. i n t e r i m aid w h i c h the
F r e n c h r e c e i v e d p r i o r to the a d o p t i o n of the E u r o p e a n R e c o v e r y
Program.
A m a j o r ob s t a c l e to f u r t h e r F r e n c h r e c o v e r y has b e e n
the f a i l u r e to solve the p r o b l e m of inflation.
I n f l a t i o n has
also c o n t r i b u t e d to h e r p o l i t i c a l i n s t ability.
The'present
F r e n c h G o v e r n m e n t has a d o p t e d some d r a s t i c m e a s u r e s to cope w i t h
this d i f f i c u l t y .
It is h o p e d that such f u r t h e r ones as m a y be
r e q u i r e d will be adopted.
In Italy, w h e n the w a r ended, i n d u s t r i a l p r o d u c t i o n was at
a virtual standstill, f o o d supplies w ere s e r i o u s l y d e f i cient,
u n e m p l o y m e n t was rife, a nd i n f l a t i o n rampant.
The i n t e r i m aid
g r a n t e d b y the U n i t e d S t ates to I t a l y has h e l p e d to avert
starvation, and arrest inflation.
I n d u s t r y has speeded up a l
though the u n e m p l o y m e n t p r o b l e m still remains to be solved.
W e s t e r n G e r m a n y is a vital part of the E u r o p e a n economy.
G e r m a n y has always b e e n an i m p o r t a n t source of r a w m a t e r i a l s
and m a n u f a c t u r e d g o o d s f or other E u r o p e a n nations, as well as
a leading outlet fo r their products.
U n d e r the careful g u i d
ance of our M i l i t a r y A u t h o r i t i e s in c o o p e r a t i o n w i t h those of
the F r e n c h and British, i n d u s t r i a l p r o d u c t i o n in W e s t e r n G e r m a n y
has r i s e n f r o m the e x t r e m e l y lo w level of o n e - q u a r t e r of p r e w a r
to about 40 p e r c e n t of that amount in the second q u a r t e r of
1948.
In recent m o n ths, there has been, a sharp u p t u r n in the
p r o d u c t i o n curve.
Output in such critical items f or E u r o p e a n '
r e c o v e r y as coal, m e t a l s and lumb e r is eve n higher.
To enable
these a d v a n c e s to be u t i l i z e d to the best a d v a n t a g e in f u r t h e r
ing the p r o g r e s s of the countries w h i c h we h a v e sought to aid
under the E u r o p e a n R e c o v e r y Program, W e s t e r n G e r m a n y has
r e c e n t l y b e e n b r o ught into this group.
T his step has a l r e a d y
c o n t r i b u t e d g r e a t l y to the w o r k i n g out of ec o n o m i c a nd f i n a n c i a l
r e l a t i o n s h i p s b e t w e e n G e r m a n y and other E u r o p e a n c o u n t r i e s .
As for the British, t h e y f ace a g r e a t t a s k in r e o r i e n t i n g
their economy. 1 B r i t a i n m u s t expo r t to live.
The m a g n i t u d e of
the t a s k w i t h w h i c h she was c o n f r o n t e d at the end of the w a r in
rebuilding h e r i n t e r n a t i o n a l trade p o s i t i o n was u n p r e c e d e n t e d .
It is e s t i m a t e d that B r i t a i n m u s t i n c r e a s e the p h y s i c a l volume
of h e r exports to 175 p e r c e n t of p r e w a r levels in order to
achieve p r e w a r st a n d a r d of living.
S-891
- 5 B o l d l y f a cing this task, B r i t a i n is g i v i n g exports the
first p r i o r i t y in n a t i o n a l production,, r e g a r d l e s s of the aus-*
t e r i t y w h i c h this requires at home.
At the p r e s e n t time,
B r i t i s h r a t ions in m a n y e s s e n t i a l s are b e l o w w a r t i m e levels.
T he r e s ults of the e x p o r t d r ive are c l e a r l y shown in the fact
that f o r the f i rst h a l f of 1948 exports wer e 130 p e r c e n t of
1938 as compared w i t h 46 p e r c e n t in 1946.
With Recovery Pro
g r a m assistance, B r i t a i n is r e d o u b l i n g its e f f o r t s to a c h ieve
its p r o d u c t i o n a nd export goals.
Our n e i g h b o r to the North, Canada, h as b e e n m o s t ge n e r o u s
in e x t e nding post w a r a s s i s t a n c e to the w ar d i s r u p t e d economies
of Europe.
This a s s i s t a n c e has been e x t e n d e d in spite of the
fact that Cana d a has a U n i t e d States d o l l a r p r o b l e m of h er own.
C a n a d a n o r m a l l y has a d e f i c i t w i t h the U n i t e d States w h i c h is
f i n a n c e d f r o m d o l lars e a r n e d f r o m exports to other areas.
In
order to m e e t this problem, C a n a d a o v e r the last y e a r f o u n d it
n e c e s s a r y to m a i n t a i n r e s t r i c t i o n s on imports f r o m the U n i t e d
S t ates and a lso to b o r r o w some $ 1 5 0 m i l l i o n in this country.
L i k e w i s e it has b e e n n e c e s s a r y for C a n a d a to r e a p p r a i s e her
p o s i t i o n w i t h r e s pect to e x t e n d i n g f o r e i g n credits.
Since the i n c e p t i o n of the E u r o p e a n R e c o v e r y P r o g r a m
C a n a d a ’s d o l l a r p o s i t i o n has b e e n s t r e n g t h e n e d t h r o u g h the r e
ceipt of do l l a r s fo r g o ods s u p plied to E u r o p e under the R e c o v e r y
Program.
It is h o p e d that h er i m p r o v e d p o s i t i o n w i l l ’enable
C a n a d a to continue and p o s s i b l y to i n c r e a s e h er a s s i s t a n c e to
Europe.
A l t h o u g h L a t i n A m e r i c a e s c a p e d the ravages of war, we
have c o n t i n u e d our t r a d i t i o n a l p o l i c y of c o o p e r a t i n g in the
d e v e l o p m e n t of our s o u t h e r n n e i g hbors, t h r o u g h f i n a n c i a l as
well as tec h n i c a l a ssistance.
L a t i n A m e r i c a m a y be c o n f ident
that we are s i n c e r e l y d e t e r m i n e d to take w h a t e v e r r e a s o n a b l e
and p r a c t i c a l m e a s u r e s are w i t h i n our p o w e r in order to p r o m o t e
ec o n o m i c d e v e l o p m e n t and r i sing standards of living in that
area.
The F a r E a s t s u f fered f r o m the w a r no less than Europe.
E c o n o m i c d e s t r u c t i o n and s t a g n a t i o n w ere l i nked w i t h social
unrest and p o l i t i c a l insta b i l i t y .
This area, so i m p o r t a n t in A m e r i c a ’s f o r e i g n trade before
the war, remains t o d a y a g r eat p o t e n t i a l source of strategic
commodities, and a m a r k e t of tre m e n d o u s p o t e n t i a l i t i e s for our
export trade.
T h e s e p o t e n t i a l i t i e s can o n l y be r e a l i z e d if
peace a nd s t eady p r o g r e s s towa r d the d e v e l o p m e n t of the latent
r e s o u r c e s of these countries can be achieved.
The value of A m e r i c a n e x p o r t s to the countries of s o u thern
and ea-stern A s i a was at an all time h i g h in 1947., but i m p orts
f rom these countries fell f ar b e l o w the levels r e a c h e d in the
S-891
6
1 9 3 0 ’s.
The h i g h level of A m e r i c a ' s exports w a s " m a d e p o s s i b l e
in large m e a s u r e "by the aid extended, in the f o r m of loans or
g r a n t s to these countries.
W a r t i m e d i s l o c a t i o n s , and social
and p o l i t i c a l unrest since the war h a v e kept e x p orts in
g e n e r a l at l ow levels, and the u n f a v o r a b l e b a l a n c e of trade
of the F a r E a s t has put limits on the a b i l i t y of this a r e a to
p a y for A m e r i c a n e x p o r t s . The p o t e n t i a l trade of the F a r East
w i t h Am e r i c a , in b o t h dire c t i o n s , is m a n y times today's volume.
T he m a i n r e c i p i e n t s of r e lief and r e h a b i l i t a t i o n aid in
the F a r E a s t h a v e b e e n China, the P hilippines, Japan, and
Korea.
This aid has i n c l u d e d credits, grants, and t r a n sfers
of surplus property.
M a n y special p r o b l e m s ar i s i n g out of the
w a r a nd p o s t w a r d e v e l o p m e n t s h a v e m a d e it e x c e p t i o n a l l y d i f f i
cult for these c o u n tries to m a k e v e r y r a pid p r o g r e s s on r e
c o v e r y and r e h a b i l i t a t i o n programs.
N o t w i t h s t a n d i n g these d i f f i c u l t conditions, A m e r i c a has
w o r k e d t o w a r d ec o n o m i c o b j e c t i v e s in the F a r E a s t w h i c h w o u l d
a l l e v i a t e the c o n d itions of p o v e r t y and economic s t a g n a t i o n
w h i c h f u r n i s h so f e r tile a b r e e d i n g g r o u n d for Communism.
Japan, a d e f e a t e d power,
crease its indu s t r i a l output,
its export products..
is f i n d i n g it d i f f i c u l t to i n
and to f ind m a r k e t s a b r o a d for
U n d e r A m e r i c a n occupation, the J a p a n e s e p e o p l e have bee n
e n d e a v o r i n g to lay a f o u n d a t i o n for a p o l i t i c a l and economic
democracy.
M a t e r i a l aid to J a p a n has c o n s i s t e d of supplies
and r aw m a t e r i a l s e s s e ntial to p r e v e n t d i s e a s e and unrest
among the Ja p a n e s e people.
The object of the latter p r o g r a m
has b e e n to enable J a p a n to r e a c h u l t i m a t e l y a p o s i t i o n w h ere
it wil l be able to p a y its own w a y w i t h exports f o r the food
and other c o m m odities it m u s t have in order to live.
Until
that time arrives, the U n i t e d S t ates is a s s u m i n g that o b l i g a
tion -- an i n v e stment, if y o u will, in creating the conditions
u n der w h i c h a peaceful, d e m o c r a t i c , s t a t e m a y g r o w a nd u l t i
m a t e l y a s s u m e its p l a c e in the f a m i l y of n a t ions.
The p r o g r e s s
w h i c h has b een a c h i e v e d to dat e is e n c o u r a g i n g t h o u g h there
h a v e b e e n d i s h e a r t e n i n g s e t -backs f r o m time to time.
K o r e a and C h i n a are d i v i d e d countries today.
In eac h
case the m a i n i n d u s t r i a l areas are s e p a r a t e d b y p o l i t i c a l or
m i l i t a r y b a r r i e r s f r o m the m a i n centers of a g r i c u l t u r e and
p o p u l a t i o n ,n •.
Our efforts in K o r e a have b e e n d i r e c t e d t o w a r d m e e t i n g
the b a s i c n e c e s s i t i e s of the p o p u l a t i o n of S o u t h Korea, and
in p r e p a r i n g the w a y f or i n d e p e n d e n c e a f t e r a h a l f - c e n t u r y of
S-891
-17 -
J a p a n e s e rule.
K o r e a ' s ec o n o m i c r e c o v e r y will be slow, and
cannot be a c h i e v e d in full m e a s u r e as long as p r e s e n t r e s t r i c
tions on n o r m a l c o m m u n i c a t i o n * travel, a nd trade b e t w e e n the
n o r t h .and south continue.
Our obj e c t i v e in China, as P r e s i d e n t T r u m a n has stated,
is to see a strong p r o g r e s s i v e C h i n a m a k i n g a full c o n t r i b u
tion to the s t r e n g t h of the f a m i l y of nations,
C o n d i t i o n s in
C h i n a hav e no t d e v e l o p e d as we h a d hoped, and she has no t been
able the r e f o r e to m a k e the p r o g r e s s toward r e c o n s t r u c t i o n and
r e h a b i l i t a t i o n w h i c h A m e r i c a n a i d w o u l d have oth e r w i s e m a d e
possible.
Our p r e s e n t C h i n a aid p r o g r a m is d e s i g n e d to g ive
C h i n a a r e s p i t e f r o m r a p i d e c o n o m i c det e r i o r a t i o n , and to
p r o v i d e it w i t h an o p p o r t u n i t y to m o v e to the e s t a b l i s h m e n t
of m o r e stable e c o n o m i c conditions.
A n d f u r t h e r south, p o l i t e
ical and social unrest and te n s i o n s are r e t a r d i n g economic
r e c o v e r y in various areas.
In t h e ^ P h i l i p p i n e s , A m e r i c a has s t r i v e n to m a k e i n d e p e n d
ence a r e a l i t y in an e c o n o m i c as well as in a p o l i t i c a l sense.
S u b s t a n t i a l aid is b e i n g g i v e n to r e p a i r the d a m a g e s of war.
Las t year, u n der special C o n g r e s s i o n a l a u t h o r i z a t i o n , the
R e c o n s t r u c t i o n F i n a n c e C o r p o r a t i o n m a d e e m e r g e n c y loans of
$ 70 m i l l i o n to the P h i l i p p i n e G o v e r n m e n t to m e e t the crisis
a r i s i n g out of the w a r t i m e d i s r u p t i o n of its finances.
I am
happy^ to s ay that the i m m e d i a t e p r o b l e m was m e t b y this action.
The f i n a n c e s of that G o v e r n m e n t are n o w in a sound condition,
and a s u b s t a n t i a l p a r t i a l r e p a y m e n t of the a d v a n c e has a l r e a d y
b e e n made.
The r e c o v e r y of the P h i l ippines, u n d e r stable
and d e m o c r a t i c conditions, has b e e n m o s t g r a t i f y i n g .
It is a
tr i b u t e to the P h i l i p p i n e p e o p l e and t h eir leaders.
And, I
m i g h t add, the p r o g r e s s m a d e in the P h i l i p p i n e s is i n d i c a t i v e
of the k i n d of p r o g r e s s w h i c h we can h o p e f or w i t h the r e s t o r a
tion of p o l i t i c a l and ec o n o m i c s t a b i l i t y to o t her s t r i f e - t o r n
p a rts of the F a r East.
The value of our trade w i t h the
P h i l i p p i n e s is m a n y times pre-war, and d e s p i t e the slo w ^rec o v e r y in some lines, n o t a b l y sugar, P h i l i p p i n e e x p orts to the
U n i t e d States, u n like those of other f ar e a s t e r n countries,
e x c e e d e d p r e - w a r levels in 1947.
1
h a p p y to see the r e e s t a b l i s h m e n t and g r a d u a l e x p a n
sion of A m e r i c a n commercial, b a n k i n g and c u l tural ties w i t h
the c o u n t r i e s ^ w h i c h lie across the ocean f r o m S a n F r a n c i s c o
and o t her P a c i f i c C o ast ports.
The f u t u r e of our r e l a t i o n s
w i t h the countries of the F a r Eas t is of the g r e a t e s t i m p o r
tance to this s e c tion of the U n i t e d S t a t e s . I see e v e n g r e a t e r
p r o s p e r i t y and d e v e l o p m e n t h e r e as a r e s u l t of the f u t u r e
s t r e n g t h e n i n g of these relations.
A p a r t f r o m the f i n a n c i a l c o n s i d e r a t i o n s w h i c h I h a v e
a t t e m p t e d to d e s c r i b e an d the r e s ults of w h i c h I h a v e t r i e d to
S-891
- 8 -
assess, the U. S. h a s t a k e n the lead in the e s t a b l i s h m e n t of
i n s t i t u t i o n s w h i c h h ave enormous p o t e n t i a l i t i e s f o r p r o m o t i n g
w o r l d p e ace and econo m i c recovery.
T h ese i n c l u d e the U n i t e d
Nations, the I n t e r n a t i o n a l M o n e t a r y F u n d and the I n t e r n a t i o n a l
B a n k f o r ' R e c o n s t r u c t i o n and D e v e l o p m e n t and the p r o p o s e d
I n t e r n a t i o n a l T r ade Organization.
It is n a t u r a l to be d i s t u r b e d over the i m m e d i a t e s i t u a
tion.
I w o u l d n ot w ant to m i n i m i z e the i m p o r t a n c e of the
p r e s e n t e-conomic and p o l i t i c a l d i s t u r b a n c e s in the world.. But
p r e o c c u p a t i o n w i t h the p r e s e n t should not obscure' the fact
that in our p o s t w a r pr o g r a m s we are b u i l d i n g not for five
years, or 10 years, but for our p e r m a n e n t future.
The n a t i o n s
of the w o r l d are e n d e a v o r i n g w i t h our a s s i s t a n c e to a c c o m p l i s h
e c o n o m i c recovery.
If p e a c e is m a i n t a i n e d , we can expect
that their r e c o v e r y will continue at an a c c e l e r a t e d pace.
We
can under such c i r c u m s t a n c e s l o o k f o r w a r d to the r e s u m p t i o n of
i n t e r n a t i o n a l ecpnomic life on a n o r m a l plane.
The U n i t e d Stat e s f o r e i g n a s s i s t a n c e p r o g r a m is d i r e c t e d
t o ward the r e a l i z a t i o n of a stable world..
The U n i t e d States
cannot r e t u r n to a p o s i t i o n of e i t h e r ec o n o m i c or p o l i t i c a l
isolation.
Our own levels of p r o d u c t i o n and e m p l o y m e n t d e p e n d
to a c o n s i d e r a b l e d e g r e e on the d e v e l o p m e n t of i n t e r n a t i o n a l
trade.
Our i n d u s t r i e s and consumers n e e d forevign m a t e r i a l s
and p r o d u c t s w h i l e other countries hav e as g r e a t a n e e d for
what we produce.
Our p r o g r a m of e c o n o m i c a s s i s t a n c e to f o r
eign countries, therefore, is an i n t e g r a l f a c t o r in the longr a nge econo m i c and p o l i t i c a l in t e r e s t of the U n i t e d States.
To the exte n t to w h i c h we can p r o p e r l y aid the e c o nomic
r e c o v e r y of the world, we can e n t r e n c h o u r selves f i r m l y in
the c o n d itions u n d e r w h i c h we here m a y continue to g r o w and
prosper.
-0 O 0 -
S-891
October 18, 1948
The Secretary of the Treasury held one of his
periodic conferences with, the Joint Comniittee on Monetary
Affairs of the American Life Convention and the Life
Insurance Association of America.
At the conference,
Treasury officials brought the insurance group up to date
on debt management studies and programs, and in turn
discussed with the insurance executives^the conditions
and prospects of the insurance business.
The insurance group again assured the Treasury
Department of their continued cooperation in fiscal
matters.
s
IMMEDIATE RELEASE
Wednesday, October 20, 1948
*2_
Secretary Snyder held one of his periodic conferences
with the Ipint Committee on M o n e t a r y ,
*W’V»' O 1!'^P f~
WlNlI
G
t)
Affairs of the American Life Convent iony^ the Treasury*^**
announced today,
k
' ’■
At the conferpice, ireasury o fficia ls brought
the insurance lA p S 'W to date on debt management
V.
.^
studies and programs, and in turn discussed with the
insurance executives the general credit field and the
condition and prospects of the insurance business.
The insurance group again assured the Treasury
Department of their continued cooperation in fiscal
matters.
TREASURY DEPARTMENT
Information Service
Wa s h i n g t o n , d . c .
IMMEDIATE RELEASE.,
Wednesdays October 20, 194-8«
No« $*-892
Secretary Snyder held one of his periodic conferences
recently with the Joint Committee on Monetary Affairs of the
American Life Convention and the Life Insurance Association
of America^
the Treasury announced today.*
At the conference, Treasury officials brought the
insurance
group up to date on debt management studies pnd
programs, and in turn discussed with the insurance executives
the general credit field and the condition and prospects
of the insurance business,#
The insurance group again assured the Treasury Departs
ment of their continued cooperation in fiscal matters«
oOo
35
years.
Ai l
of t h e s e f a c t s
testify
t o t he powerf ul
reserve strength
in our n a t i o n a l
economy.
For with our eyes toward
the f u t u r e - - with a l e r t n e s s to
d e t e c t and f o r e s t a l l
t h r e a t s to
our economic s t a b i l i t y - - we may
count upon continued p r o s p e r i t y
t h e y e a r s t o come.
in
The Nation is faced with a
heavy u n f i l l e d demand f o r houses, for
automobiles, farm machinery,
cars,
steel,
electrical
freight
capacity,
new s c ho o l s and highways.
Our
population is growing, and a s t i l l
g r e a t e r expansion in these f a c i l i t i e s
may well be c a l l e d f o r in the f ut ur e.
E lectro n ic devices,
plastics,
and
other new inventions a r e a t t r a c t i n g
an i nc r e a s i ng public demand.
We
have only begun to tap the b i l l i o n s
of savi ngs b u i l t up during the war
33
e s t a t e s p e c u l a t i o n and another is the
r api d r i s e
in consumer c r e d i t ,
at record levels.
now
This type of
c r e d i t expansion not only c o n t r i butes
to i n f l a t i o n a r y pr es s ur e now, but
will be s t r o n g l y d e f l a t i o n a r y
Al l
types of
later.
l oa ns s ho ul d be
ke pt on a sound b a s i s .
Speculative
b u y i n b s houl d be he l d t o a pr ope r
minimum.
And consumer c r e d i t shoul d
n o t be a l l owe d t o become o v e r - e x t e nde d
A g r e a t e r and even more p r o s p e r o u s
future faces t h i s nation
wise.
i f we a r e
- 32 Be must c o n c e n t r a t e on those
f e a t u r e s of our pr esent s i t u a t i o n
t h a t have enabled us to maintain a
b a s i c a l l y sound h i g h - l e v e l
economy,
and *e must be a l e r t for any
developing evidence of unbalance
t h a t might cause an unnecessary
breaKdown.
The pr es ent p i c t u r e
is a
r e a s s u r i n g one$ but t her e are a few
unhealthy symptoms in a ddi t i on to the
i n f l a t i o n a r y p r e s s u r e s which I have
mentioned.
One is the e x t e n t of real
administered by the Federal Reserve
Board, have done much to prevent
excessive speculation
in t h a t f i e l d .
The Federal Deposit
insurance
l e g i s l a t i o n p r o t e c t s the savings
of d e p o s i t o r s ,
and the s t a b i l i t y of
the banning s t r u c t u r e is thereby
immensely improved.
Ahen a l l
summarized,
of t hese f a c t o r s are
they i n d i c a t e without
question t h a t the nat i onal economy
today is much h e a l t h i e r and st r onger
than i t was in the t w e n t i e s .
30
which has broadened the use of
c o l l e c t i v e bargaining in wage
negotiations,
has served to strengthen
and s t a b i l i z e the e n t i r e wage s t r u c t u r e
Under the p r o t e c t i v e o pe r a t i o n s
of the S e c u r i t i e s and Exchange
CotMiission,
i n v e s t o r s in s e c u r i t i e s
are enabled t o obt ai n f u l l
accurate
and,
information concerning
the r e g i s t e r e d
issues.
R e s t r i c t i o n s on the use of
credit
in s t o c x marxet t r a d i n g ,
29
we have F e d e r a l l y - s p o n s o r e d S t a t e
unemployment
I n s u r a n c e which would
aid m a t e r i a l l y
in m a i n t a i n i n g
p u r c h a s i n g power s h o u l d t h e r e e v e r
de ve l op a s e r i o u s b u s i n e s s s e t b a c K .
Today,
agriculture
the p o s it i o n of
i s b o l s t e r e d not onl y
by t h e s t r o n g f i n a n c i a l
condition
o f f a r m e r s , b u t a l s o by me as ur es
to
i n s u r e p r o o e r r e t u r n s t o t he
f armers f or
their
farm products./
The Adm i n i s t r a t i on* s program
f o r p r o t e c t i n g t he r i g h t s o f
labor.
28
than i t did in the t w e n t i e s .
in any a p p r a i s a l of the
s t r e n g t h of our economy now as
c o n t r a s t e d * ith t he s i t u a t i o n
in the
twenties, f u l l r egar d must be g i v e n to
the saf eguards and s u p p o r t s which
have been provided s i n c e the e a r l y
19 3 0 * s by a government a c t i n g with
v i s i o n and dispatch in response to
t nation's awaKened sense of s o c i a l
respons i b 1 1 i t y .
Today, under the prov is ions
of Social S e c u r i t y
legislation,
b o r r o wi n g .
On t he c o n t r a r y ,
i t has
V
been accompani ed by a d e c r e a s e o f
abo ut 30 p e r c e n t
debt,
in f arm mor t gage
in c o n t r a s t
t o an i n c r e a s e of
160 p e r c e n t dur i ng t h e s p e c u l a t i v e
land boom o f World War I .
The t o t a l
farm mor t gage d e b t o f $ 4 - 3 / 4 b i l l i o n
a t t h e end o f
1947 was l e s s t han
8 per cent of the value of a l l
l ands and b u i l d i n g s .
in o t h e r r e s p e c t s ,
In t h i s ,
agriculture
farm
and
stands
t oday on a much f i r m e r f o u n d a t i o n
- 26 recent total
of $62 b i l l i o n .
Corporate holdings of cash and
Government s e c u r i t i e s hage increased
$22 b i l l i o n s i n c e
1939.
And, the s t r o ng f i n a n c i a l
position
in a g r i c u l t u r e
is well
i l l u s t r a t e d by the s i t u a t i o n
r eal e s t a t e .
in farm
While p r i c e s of farms
have advanced even more r a p i dl y
in
r e c e n t y e a r s than during the
comparable period of World War 1,
the r i s e has not been financed by
25
t h a t bot h
i n d i v i d u a l s and c o r p o r a t i o n s
%
have b u i l t up a s s e t s o f s u f f i c i e n t
volume t o ma i n t a i n a h i g h l y
financial
l i qui d
position.
The l i q u i d a s s e t s o f
i ndi vi dual s
a r e now e s t i r a a t é d a t a p p r o x i m a t e l y
$200 b i l l i o n ,
o f which more t han
$140 b i l l i o n has been a c c u mu l a t e d
since
1939.
Net worKing c a p i t a l
c o r p o r a t i o n s has
bi l l i on since
of
i n c r e a s e d by $38
1939,
reaching a
long-term i s s u e s .
eri
! ndicat
of t h e s e a c t i o n s ,
it
I ¥eness
is
to note t h a t
ey suppl y has
l atel y declined
S u t . perha
gnificant factor
structure
in
of t he n a t i o n
I
ness
f * .
is the f a c t
- 23 c ampai gns f o r s a v i n g s bonds
c o ndu c t e d dur i ng t h e p e r i o d .
As p a r t o f t h e Tr e a s ur y
program t o r e d u c e
pressures,
inflationary
c r e d i t has been
t i g h t e n e d by a gr adual
in/interest rates
on s h o r t - t e r m
Treasury s e c u r i t i e s ,
s har p r e d u c t i o n
increase
and by a
in premiums on
In c a r r y i n g out the T r e a s u r y ’ s
debt management
do
I icy, the debt
held by the commercial barm jug
system has been reduced by $30 b i l l i o n
s i n c e February 1946, or $3 b i l l i o n
more than the r e d u c t i o n
debt.
in the t o t a l
There has been an a c t u a l
i nc r ease during t h i s oeriod of
$3 b i l l i o n
in Federal debt held
by nonbarm i n v e s t o r s .
This increase
r e f l e c t s p r i n c i p a l l y the increased
amount of s e c u r i t i e s held by Governmen
t r u s t funds and the vigorous s a l e s
It was most g r a t i f y i n g to be
able to announce a t the end of the
fiscal
year j u s t passed t h a t we had
completed two years of budget
surpluses.
In t he 1948 f i s c a l
year,
we achieved by f a r the l a r g e s t surplus
in our h i s t o r y - $ 8 , 4 1 9 , 0 0 0 , 0 0 0 .
But,
unfortunate Iy, the r e c or d of
these two years of surpl uses will not
be repeat ed during the present f i s c a l
year.
And t ha t
is due to t he
i l l - t i m e d and iI I-conceived t ax b i l l
passed in the l a s t Congress.
I s t a t e d when I assumed o f f i c e
as S e c r e t a r y o f t h e T r e a s u r y
June,
1946,
that
in
i t was t h e
r e s p o n s i b i I i t y o f t h e Government t o
reduce
its expenditures
in e v e r y
I
p o s s i b l e way,
and to a c h i e v e a
b a l a n c e d b udg e t ,
President
or b e t t e r .
Bot h
Truman and I have
j F
c o n t i n u e d t o emphasi ze t h e
i mpe r a t i v e
n e c e s s i t y of r e d u c i n g our de b t
burden d u r i n g t h i s p e r i o d of g r e a t
prosper i t y .
we 1 1 - b a I a n c e d s i t u a t i o n ,
part, to
in
large
t h e good s e n s e o f t h e
Ameri can pe opl e a i de d by v a r i o u s
a c t i o n s and t i me l y warni ng s i g n a l s
from t he Government .
f i e must
i. .
however,
4
be c o n s t a n t l y a l e r t ,
\ . | ...... g -
■\ '■
t o the p o t e n t i a l
dangers
t h a t have t hreatened through growing
inflationary pressures.
The
out st andi ng need of our economy is
to c o u n t e r a c t t hes e p r e s s u r e s .
The
Government has only limited weapons
Today,
17 -
i t seems qui t e c l e a r t hat
n e i t h e r production nor p r i c e s a r e
being supported by a r i s i n g t i d e of
s p e c u l a t i o n , such as c h a r a c t e r i z e d
the
IB20 booms.
interest
The s p e c u l a t i v e
in the commodity markets is
pr oper t i onateIy normal.
SpecuI ati on
in the s t oc k market has remained
rational.
Businessmen g e n e r a l l y
have been c a u t i o u s about expanding
their
inventories.
fie
one
t h i s continued
16
-
, Because
c y c l e can only
it
is DU Ì It
foundation, g e n e r a l l y c h a r a c t e r i z e d
e x c e s s i v e specu
on.
booms
, f o r example, were
fed by widespread s p e c u l a t i o n in
commod1 1 1 es
in r u r a l
or urban
r e a l e s t a t e , much of which was
f inanced with borrowed
Doom wnich ended in
unbalanced by nation-wide stock
market s p e c u l a t i o n wnich was a l s o
Cfc
financed witn
money
-
15 -
sound c o n d i t i o n s which could be
i n a e f i n i t e I y , provided an
unbalanced s i t u a t i o n
a
to develop.
Let
t h i s - - f o r I think i t touches
h e a r t of the
p r o s p e r i t y can
ituation.
Our
continued and spread
to more and asore of our people - - as
i t should - - provided we do not allow
an unbalanced c o n o i t i o n to develop.
Let me point out some of the
f a c t o r s which could be dangerous.
A t y p i c a l boom s t a g e in the businets
14
I t is important however t h a t
we d i s t i n g u i s h between a h i g h - l e v e l
economy and the boom s t a g e in the
s o - c a l l e d "business c y c l e ’*.
he r e i n, as i see i t ,
For
l i e s the
e s s e n t i a l d i f f e r e n c e between the
pr esent economic s i t u a t i o n and
those periods of the t went i es .
A h i g h - l e v e l economy with
widespread p r o s p e r i t y , such as we
have today, does not n e c e s s a r i l y
imply t h a t the foundation must be
unsound.
I t may well be based on
-
»3
-
has reached new high r e c o r d s ,
with
more than SO m i l l i o n persons now in
c i v i l i a n jobs.
This does not include
the Armed . F o r c e s .
A g r i c u l t u r a l production is
c l o s e to the wartime pea«,
income t h i s year
Cash farm
is expected to equal
the $30 b i l l i o n r e c o r d f i g u r e of
1947.
Our ma t er i al wel l - bei ng has
improved s u b s t a n t i a l l y as more and
more consumer goods have become
avaiIable.
f a i r a ppr ai s ai of "America Today"
could j u s t i f y the f e e l i n g t h a t a
mat er i al
recession
in "America
Tomorrow" was i n e v i t a b l e .
year s have borne out >th i s b e l i e f .
Far from s u f f e r i n g the r e c e s s i o n
t h a t many had p r e d i c t e d ,
our national
production and consumption have
pushed forward to new e e c o r d s .
The i n d u s t r i a l
is
§
production index
as c omp a
wI th
g o o d s , and with c e r t a i n saf eguar ds
that
had been i n s t a l l e d by the
Government during r e c e n t years to
p r o t e c t our economy, many of us did
not b e l i e v e t ha t a postwar r e c e s s i o n
was i n e v i t a b l e j u s t because one
occurred a f t e r Wor Id War I.
In my t a l k to the Economic Club,
I pointed out some of the important
d i f f e r e n c e s between the postwar
s i t u a t i o n of I 9 2 0 and t h a t of
ano s t a t e d , t ha t
differences,
1946,
in view of these
I could not see how a
"How long can i t
l a s t ? " was
the big question a t t hat time.
A
survey of the opinions of economists,
banners, ana o t her business observers
showed a widely held b e l i e f t h a t
business would r eac h a top within
a few months, and t h a t by the
following summer i t would s t a r t a
substantial
decline.
8ut; i saw no reason to a c c e p t
t h a t opinion.
For with a l l
the
enormous r e s o u r c e s of our countr y,
with our huge u n f i l l e d demand f o r
in business i n v e n t o r i e s ,
which had
increased more than $6 b i i i i o n in
four months.
In the f a l l
of 1946, the
production of both manufactured
goods and farm products was f a r
above any previous peacetime l e v e l .
Industrial
production was 80 percent
above the 5 - y e a r prewar aver age,
and farm production exceeded the
prewar level by f u l l y o n e - t h i r d .
C i v i l i a n employment was a t an
at I -time r e c o r d .
s i t u a t i o n as it
looks today, r e c a l l
a t a l k t h a t I gave before the
Economic Club of New York n e a r l y
two years ago,
in November,
At t h a t time,
1946.
t her e was g r e a t
u n c e r t a i n t y over the business
prospect.
The s t o c k market had
broken baoly in September, which
lea many to b e l i e v e t h a t a business
d e c l i n e would s h o r t l y foll ow.
Business obs e r v e r s feared a
r e p e t i t i o n of the
1920 c r a s h .
This
f e a r was r e i n f o r c e d by a g r e a t r i s e
- 7 For
in America today t h e r e is not
only the g r e a t e s t ma t e r i a l pr o s p e r i t y
a na t i o n ever has known; t her e
definitely a spiritual
\s/
reawakening in
response to the requirements of
world l eader shi p.
I would like to t a l k b r i e f l y
about our pr es ent p r o s p e r i t y .
I
would like to reemphasize i t s strength
and t o r e s t a t e those f a c t o r s which
£ ive promise of continued nat i onal
we I l - b e i n g .
0 i s c u s s i o n of the economic
*9lP8Pi)*9M
-
O
-
'
the easy and informal procedures of
the town meeting s u f f i c e d to dispose
of p r a c t i c a l l y a l l
of man's problems.
Advancement has not come to us
without i t s p r i c e in g r e a t l y
complicated p a t t e r n s of human
re Ia t i o n s h i p s .
In C a l i f o r n i a ,
in
Washington, and everywhere, we shall
always have those who ask whether
the advancement has been worth the
price.
For most of us the answer is
an unqual i f i ed and u n h e s i t a t i n g yes.
\
*\
\
:
\
'
"
f**
,
- 5 of
i t s problems, and concern
themselves with t h e i r proper
solution.
This is t r u e ,
of c o u r s e ,
not only of the problems with which
we deal
at the Treasury, but of the
problems of a l l
Government department
and a g e n c i e s .
And c l e a r l y ,
the p r e s s u r e s and
c o m p l e x i t i e s of public a f f a i r s never
before c a l l e d f o r such e a r n e s t study
and understand!ng as they now do.
fie
are f a r removed from the days when
4
-
-
issues.
As S e c r e t a r y o f t h e T r e a s u r y ,
am r e q u i r e d
to deal
have an o v e r - a l l
I
wi t h m a t t e r s t h a t
e f f e c t upon our
economy and whi ch c o n c e r n e a c h one of
you d i r e c t I y .
country has,
interest
Ever y c i t i z e n
of t h i s
or s houl d have, a v i t a l
in t h e s e m a t t e r s .
Our
Government i s a d e m o c r a t i c f orm of
gover nment .
If
the pe o pl e a r e t o
e x e r c i s e t h e i r proper a u t h o r i t y
gove r nme nt ,
in
t hey must be f u l l y aware
3
a c r o s s the
l and,
and among a l l
people.
it
l e n g t h and b r e a d t h o f t h i s
c l a s s e s o f our
1 b e l i e v e t h a t f undament a 11y
i s an e x c e l l e n t r e p r e s e n t a t i o n of
t he b a s i c s t r e n g t h o f our d e m o c r a t i c
phi I os ophy.
We have become more c l o s e l y
u n i t e d a s a c o u n t r y and a s a p e o p l e .
We a r e no l o n g e r c o n c e r n e d s o l e l y
or p r i m a r i l y wi t h our
regional
pr o b l e ms .
local
or
We a r e a s deepl y
c o n c e r n e d wi th n a t i o n a l
pr obl e ms and
ill
-
2
-
c o u r s e than
l i s t e n i n g to a discussion
of n a t i o n a l
affairs.
here f or
Yet you a r e
t h a t p r e c i s e pu r po s e .
It
is p a r t i c u l a r l y encouraging because
i t so » e l l
illustrates
progressively
the
t he
i n q u i r i n g a t t i t u d e and
i n t e n s e conceffh
in n a t i o n a l
a f f a i r s whi ch i s b e i n g de mo n s t r a t e d
t oday by t h e a v e r a g e Ameri can c i t i z e n .
I have found s u c h an a t t i t u d e
especially
p r e v a l e n t dur i ng t he
post war p e r i o d .
I t can be obs e r ve d
i t would be a s i n c e r e p l e a s u r e
under any c I r c u m s t a n c e s t o have t he
o p p o r t u n i t y of a d d r e s s i n g t he
Channel
that
C i t y Cl ub.
But may I say
I e s p e c i a l l y a p p r e c i a t e the
i n t e r e s t you have e v i d e n c e d
and t he
c o u r t e s y you nave shown me t oday
holding t h i s s p e c i a l
me e t i n g of
your o r g a n i z a t i o n .
Thi s
i s a day o f t he week to
whi ch most of us as a r u l e would
p r e f e r t o d e v o t e a more
leisurely
in
ADDRESS BY SECRETARY SNYDER
BEFORE THE
CHANNEL CITY CLUB
SANTA BARBARA. CALIFORNIA
.
OCTOBER 23 1948
I P.M.
WA V1EW OF OUR PRESENT
"DAY ECONOMY"^
TREASURY DEPARTMENT
Washington
Th e f o l l o w i n g ad d r e s s by S e c r e t a r y S n y d e r b e f o r e
the Channel C i t y Club, S a n t a Barbara, Cali f o r n i a , is
s c h e d u l e d f or d e l i v e r y at 1 P.M., O c t ober 23^ 19^-8,
and is f or re l e a s e at that time.
It w o u l d be a sincere p l e a s u r e u n der a n y c i r c u m s t a n c e s
to have* the o p p o r t u n i t y of a d d r e s s i n g the Ch a n n e l C i t y Club.
B u t m a y I say that I e s p e c i a l l y a p p r e c i a t e the i n t e r e s t y o u
have e v i d e n c e d and the c o u r t e s y y o u have shown m e t o d a y in
h o l d i n g this special m e e t i n g of y o u r organi z a t i o n .
T his is a d a y of the w e e k to w h i c h m o s t of us as a rule
w o u l d p r e f e r to d e v o t e a m o r e l e i s u r e l y course t han l i s t e n i n g
to a d i s c u s s i o n of n a t i o n a l affairs.
Y e t y o u are here fo r that
p r e c i s e purpose.
It is p a r t i c u l a r l y e n c o u r a g i n g b e c a u s e it so
well i l l u s t r a t e s the p r o g r e s s i v e l y i n q u i r i n g a t t i t u d e an d the
i n t e n s e co n c e r n in n a t i o n a l a f f airs w h i c h is b e i n g d e m o n s t r a t e d
t o d a y b y the a v e r a g e A m e r i c a n citizen.
I h a v e f o und such an a t t i t u d e e s p e c i a l l y p r e v a l e n t d u r i n g
the p o s t w a r period.
It can be ob s e r v e d across the l e n g t h and
b r e a d t h of this land, and among all classes of our people.
I
b e l i e v e that f u n d a m e n t a l l y it is an e x c e l l e n t r e p r e s e n t a t i o n
of the b a s i c s t r e n g t h of our d e m o c r a t i c p h i l o s o p h y .
W e have b e c o m e m o r e c l o s e l y u n i t e d as a c o u n t r y a nd as a
people.
W e are no l o n g e r c o n c erned s o l e l y or p r i m a r i l y w i t h
our local or r e g ional problems.
W e are as d e e p l y c o n c e r n e d
w i t h n a t i o n a l p r o b l e m s and issues.
As S e c r e t a r y of the Treasury, I a m r e q u i r e d to deal w i t h
m a t t e r s that h a v e an over-all effect u p o n our e c o n o m y a nd w h i c h
c o n cern e ach ohe of y o u directly.
E v e r y c i t i z e n of this
c o u n t r y has, or should have, a vital i n t e r e s t in these m a t t e r s .
Our G o v e r n m e n t is a d e m o c r a t i c f o r m of g o v e r n m e n t .
If the
p e o p l e are to e x e r c i s e the ir p r o p e r a u t h o r i t y in g o v e r n m e n t ,
the y m u s t be f u l l y a w are of its problems, a nd c o n c e r n t h e m
selves w i t h their p r o p e r solution.
This is true, of course, n ot
only of the p r o b l e m s w i t h w h i c h we deal at the Treasury, but of
the p r o b l e m s of all G o v e r n m e n t d e p a r t m e n t s and agencies.
2
A n d clearly* the p r e s s u r e s and c o m p l e x i t i e s of p u b l i c a f
fairs n e v e r b e f o r e called, for such earnest s t u d y and u n d e r s t a n d
ing as the y n o w d o . We are far r e m o v e d f r d n the day s w h e n the
e a s y a nd i n f ormal p r o c e d u r e s of the town m e e t i n g s u f f i c e d to
d i s p o s e of p r a c t i c a l l y all of m a n ' s problems.
A d v a n c e m e n t has
not come to us w i t h o u t its p r ice in g r e a t l y c o m p l i c a t e d p a t
terns of h u m a n relati o n s h i p s .
I n California, in W a s h i n g t o n ,
a nd everywhere, we shall alwa y s have those w ho a s k w h e t h e r the
a d v a n c e m e n t has b e e n w o r t h the price.
F o r m o s t of us the
a n s w e r is an u n q u a l i f i e d and u n h e s i t a t i n g yes.
F o r in A m e r i c a
t o d a y there is not o n l y the g r e a t e s t m a t e r i a l p r o s p e r i t y a n a
tion e ver has knownj there is d e f i n i t e l y a s p i ritual r e a w a k e n
ing in r e s p o n s e to the r e q u i r e m e n t s of w o r l d l eadership.
I w o u l d like to tal k b r i e f l y about our p r e s e n t p r o s p e r i t y .
I w o u l d like to r e e m p h a s i z e its strength, and to r e s t a t e those
f a c t o r s w h i c h g i v e p r o m i s e of c o n t i n u e d n a t i o n a l w e l l - b e i n g .
D i s c u s s i o n of the e c o n o m i c s i t u a t i o n as it looks today,
r e c a l l s a tal k that I gav e b e f o r e the E c o n o m i c C l u b of N e w
Y o r k n e a r l y two years ago, in November, 19^6.
At that time, there was g r e a t u n c e r t a i n t y over the b u s i n e s s
prospect.
The s t o c k m a r k e t h a d b r o k e n b a d l y in S eptember,
w h i c h led m a n y to b e l i e v e that a b u s i n e s s ^ d e c l i n e w o u l d s h o r t l y
follow.
B u s i n e s s o b s e rvers f e a r e d a r e p e t i t i o n of the 1920
crash.
This f e a r was r e i n f o r c e d b y a g r e a t rise in b u s i n e s s
i nventories, w h i c h h ad i n c r e a s e d m o r e tha n $6- b i l l i o n in f our
months.
In the.fall of 19^6, the p r o d u c t i o n of b o t h m a n u f a c t u r e d
g o o d s a n d f a r m p r o d u c t s was far a b ove a n y p r e v i o u s p e a c e t i m e
level., I n d u s t r i a l p r o d u c t i o n was 80 p e r c e n t above the 5 - year
p r e w a r average, a n d f a r m p r o d u c t i o n e x c e e d e d the p r e w a r level
by f u l l y one-third.
C i v i l i a n e m p l oyment was at an a l l - t i m e
record.
f,H o w long can it last?"
was the big q u e s t i o n at that time.
A s u r v e y of the op i n i o n s of e conomists, bankers, and other b u s
iness o b s e r v e r s showed a w i d e l y held b e l i e f that b u s i n e s s 'w o u l d
r e a c h a top w i t h i n a f e w months, and that by the f o l l o w i n g
summer it w o u l d start a s u b s tantial decline.
But I saw no r e a s o n to a c cept that opinion.
F o r w i t h all
the en o r m o u s r e s o u r c e s of our country, w i t h our hug e u n f i l l e d
dema n d fo r goods, and w i t h certain s a f e g u a r d s vthat h ad b e e n
i n s t a l l e d b y thé G o v e r n m e n t d u ring recent y e ars to p r o t e c t our
economy,- m a n y of us d i d not b e l i e v e that a p o s t w a r r e c e s s i o n
was i n e v i t a b l e Just b e c a u s e one o c c u r r e d a f t e r W o r l d W'.r I.
1 4ML
fg
Ig j g g l
i
I n m y t a l k to the E c o n o m i c Club., I p o i n t e d out some of the
imp o r t a n t d i f f e r e n c e s b e t w e e n the p o s t v a p s i t u a t i o n of 1 920 and
that of 19^6, and stated, that in v i e w of these d i f f e r e n c e s , I
could not see h o w a f a i r a p p r a i s a l of " A m e r i c a ,Toda y " could
j u s tify the f e e l i n g that a m a t e r i a l r e c e s s i o n in "Amer i c a T o
m o r r o w " was inevitable.
The events of the past two years have b o r n e out this b e
lief.
F a r f r o m s u f fering the r e c e s s i o n that m a n y h a d p r e
dicted, our n a t i o n a l p r o d u c t i o n and c o n s u m p t i o n hav e p u s h e d
f o r w a r d to n e w records.
The i n d u s t r i a l p r o d u c t i o n i n dex is n o w at 190, as compa r e d
w i t h 180 in the fall of 1946.
E m p l o y m e n t has r e a c h e d n e w h igh
records, w i t h m o r e t han 60 m i l l i o n p e r s o n s n o w in c i v i l i a n jobs..
This does n ot i n c lude the A r m e d Forces.
A g r i c u l t u r a l p r o d u c t i o n is close to the w a r t i m e peak.
Cash f a r m income this y ear is e x p e c t e d to equal the $ 30 b i l l i o n
r e c o r d f i g u r e of 1947.
Our m a t e r i a l w e l l - b e i n g has i m p r o v e d s u b s t a n t i a l l y as
more and m o r e consu m e r g o ods h a v e become available.
It is i m p o r t a n t h o w e v e r that we d i s t i n g u i s h b e t w e e n a
h i g h - l e v e l e c o n o m y and the b o o m stage in the s o - c a l l e d " b u s iness
cycle".
F o r herein, as I see it, lies the e s s e n t i a l d i f f e r e n c e
b e t w e e n the p r e s e n t ec o n o m i c s i t u a t i o n and those p e r i o d s of
the t w e n t i e s .
A h i g h - l e v e l e c o n o m y with, w i d e s p r e a d p r o s p e r i t y , such as
we have today, d oes n ot n e c e s s a r i l y i m p l y that the f o u n d a t i o n
must be unsound.
It m a y w ell be b a s e d on sound c o n d i t i o n s
w h i c h could be p r o l o n g e d i n d e f i n i t e l y , p r o v i d e d an u n b a l a n c e d
sit u a t i o n wer e not a l l o w e d to develop.
Let me r e p e a t this -for I t h i n k it touches the h e a r t of .the w h o l e situation.
Our
p r o s p e r i t y can be c o n t i n u e d a nd spread to m o r e a n d m o r e of our
people -- as it should -- p r o v i d e d we do n o t . a l l o w an u n b a l
anced c o n d i t i o n to develop.
Let m e p o int out some of the fa c t o r s w h i c h could be d a n g e r
ous.
A typical b o o m stage in the b u s i n e s s cycle can o nly be
temporary, b e c a u s e i (
t is built on an u n b a l a n c e d foun d a t i o n ,
g e n e r a l l y c h a r a c t e r i z e d b y e x c e s s i v e speculation.
T he booms
of the twenties, f or example, w e r e f ed b y w i d e s p r e a d s p e c u l a
tion in c o m m o d i t i e s a nd in rural or u r b a n real, estate, m u c h of
w h i c h was f i n a n c e d w i t h b o r r o w e d money.
The b o o m w h i c h . e n d e d
i n ^l929 was u n b a l a n c e d b y n a t i o n - w i d e s t ock m a r k e t s p e c u l a t i o n
w h i c h was also l a r g e l y f i n a n c e d w i t h b o r r o w e d money.
Today, it seems quite clear that n e i t h e r p r o d u c t i o n n o r
' prices are being s u p p o r t e d b y a r i sing tide of specu l a t i o n , such
- 4 -
as c h a r a c t e r i z e d t he 1920 booms.
The s p e c u l a t i v e i n t e r e s t in
the c o m m o d i t y m a r k e t s is p r o p o r t i o n a t e l y n o rmal.
Speculation
in the s t ock m a r k e t has r e m a i n e d rational.
Businessmen g e n
e r a l l y h ave b e e n cauti o u s a b out e x p a n d i n g t h eir i nventories.
W e owe this c o n t i n u e d well.-balanced situation, in large
part, to the g o o d sense of the A m e r i c a n p e o p l e a i d e d b y various
ac t i o n s and t i m e l y w a r n i n g signals f r o m the G o v e r n m e n t .
W e m u s t be c o n s t a n t l y alert, however, to the p o t e n t i a l
d a n g e r s that have t h r e a t e n e d t h r o u g h g r o w i n g i n f l a t i o n a r y p r e s
sures.
The o u t s t a n d i n g n e e d of our e c o n o m y is to cou n t e r a c t
these p r e s s u r e s . The G o v e r n m e n t has o n l y l i m i t e d w e a p o n s fo r
this purpose, but the g o v e r n m e n t is v i g orous in u s ing those
that it has.
Let no one h ave a n y d o ubt about this.
One of
these w e a p o n s has b e e n the p o l i c y of d i r e c t i n g debt m a n a g e m e n t
to a r a p i d r e d u c t i o n of the F e d e r a l debt, p a r t i c u l a r l y that
held b y banks.
;
B u d g e t surpluses, e n a b l i n g d ebt r e d u c t i o n d u r i n g the past
two years, hav e b e e n a i m e d at r e d u c i n g i n f l a t i o n a r y pressures.
I s t ated when. I a s s u m e d o f f i c e as S e c r e t a r y of the
T r e a s u r y in June, 1946, that it was the r e s p o n s i b i l i t y of the
G o v e r n m e n t to reduce its e x p e n d i t u r e s in e v e r y p o s s i b l e way,
and to ac h i e v e a b a l a n c e d budget, or better.
Both President
T r u m a n and I h a v e c o n t i n u e d to e m p h a s i z e the i m p e r a t i v e n e c e s
sity of re d u c i n g our debt b u r d e n d u r i n g this p e r i o d of g r e a t
prosperity.
It was m o s t g r a t i f y i n g to be able to a n n o u n c e at the end
of the f i s c a l y ear just p a s s e d that we h a d c o m p l e t e d t wo y e ars
of b u d g e t surpluses.
In the 1948 fiscal year, we a c h i e v e d b y
far the l a r gest surplus in our h i s t o r y - $ 8 , 4 1 9 , 0 0 0 , 0 0 0 ,
But,
u n fortunately, the r e c o r d of these two y e ars of su r p l u s e s will
not be r e p e a t e d d u r i n g the p r e s e n t f i s c a l year.
A n d that .is
due to the i l l - t i m e d and i l l - c o n c e i v e d tax bill p a s s e d In the
last Congress.
I n carrying out the T r e a s u r y ' s debt m a n a g e m e n t policy, the
debt h e l d b y the comm e r c i a l b a n k i n g syst e m has b e e n r e d u c e d by
$30 b i l l i o n since F e b r u a r y 1946, or $3 b i l l i o n m o r e than the
r e d u c t i o n in the total debt.
There has b e e n an actu a l i n c r e a s e
during this p e r i o d of $3 b i l l i o n in F e d e r a l debt held by n o n
bank inv e s t o r s .
Thi s i n c r e a s e re f l e c t s p r i n c i p a l l y the i n
creased a m ount of sec u r i t i e s h e l d by G o v e r n m e n t trust funds
and the vig o r o u s sales c a m p aigns for savings bonds c o n d u c t e d
during the period.
A s part of the T r e a s u r y p r o g r a m to r e duce i n f l a t i o n a r y
pressures, credit has b e e n t i g h t e n e d b y a g r a d u a l i n c r e a s e in
- 5 -
i n t e r e s t rates on s h o r t - t e r m T r e a s u r y securities,
sharp r e d u c t i o n in p r e m i u m s on l o n g - t e r m issues.
and b y a
I n d i c a t i n g the e f f e c t i v e n e s s of these actions, it is e n
couraging to n ote that the m o n e y s u p p l y has l a t e l y declined.
But, p e r h a p s the m o s t s i g n i f i c a n t f a c t o r in the business,
structure of the n a t i o n is the fact that b o t h i n d i v i d u a l s and
corpo r a t i o n s have built up a s s e t s of s u f f i c i e n t volu m e to m a i n
tain a h i g h l y liquid f i n a n c i a l position.
The l i q u i d assets of i n d i v i d u a l s are n o w e s t i m a t e d at a p
p r o x i m a t e l y $200 billion, of w h i c h m o r e than $ 1^0 b i l l i o n has
bee n a c c u m u l a t e d since 1939.
Net w o r k i n g capital of c o r p o r a t i o n s has i n c r e a s e d b y $38
b i l l i o n since 1939> r e a c h i n g a r e c e n t - total of $62 bi l l i o n .
C o r p o r a t e h o l d i n g s of cash and G o v e r n m e n t securities h ave i n
creased $22 b i l l i o n since 1939.
And, the strong f i n a n c i a l p o s i t i o n in a g r i c u l t u r e is well
i l l u s t r a t e d b y the sit u a t i o n in f a r m real estate.
While prices
of farms have a d v a n c e d e v e n m o r e r a p i d l y in recent y e ars tha n
during the c o m p a r a b l e p e r i o d of W o r l d W a r 1, the rise has not
been f i n a n c e d b y b o r r o w i n g .
On the contrary, it has b e e n
a c c o m p a n i e d b y a d e c r e a s e of about 30 p e r c e n t in f a r m mortgagedebt, in c o n trast to an in c r e a s e of 16 0 p e r c e n t d u r i n g the
s peculative land b o o m of W o r l d W a r I.
The total f a r m m o r t g a g e
debt of $ ^ - 3 / A .b i l l i o n at the end of 19^7 was less t h a n 8 p e r
cent of the value of all f a r m lands and buildings.' In this,
and in other respects, a g r i c u l t u r e stands t o d a y on a m u c h
firmer f o u n d a t i o n t h a n it d i d in the twenties.
I n a n y a p p r a i s a l of the s t r e n g t h of our e c o n o m y n o w as
contrasted w i t h the s i t u a t i o n in the twenties, full rega r d m u s t
be g i v e n to the safeguards and supports w h i c h have b e e n p r o
vided since the e a r l y 1 9 3 0 ’s b y a g o v e r n m e n t a c t i n g w i t h v i s i o n
and d i s p a t c h in r e s p o n s e to a n a t i o n ’s a w d k e n e d sense of social
responsibility.
/
Today, under the p r o v i s i o n s of S o cial S e c u r i t y l egislation,
we have F e d e r a l l y - s p o n s o r e d State u n e m p l o y m e n t i n s u r a n c e w h i c h
would aid m a t e r i a l l y in m a i n t a i n i n g p u r c h a s i n g p o w e r should
there ever d e v e l o p a serious b u s i n e s s setback.
Today, the p o s i t i o n of a g r i c u l t u r e is b o l s t e r e d not o nly
by the strong f i n a n c i a l c o n d i t i o n of farmers, but also b y
mea s u r e s to insure p r o p e r returns to the, f a r m e r s for their f a r m
products.
6
The A d m i n i s t r a t i o n ’s p r o g r a m f o r p r o t e c t i n g the rights
of labor, w h i c h has b r o a d e n e d the use of c o l l e c t i v e b a r g a i n i n g
in w a g e n e g o t i a t i o n s , has served to s t r e n g t h e n and stabilize
the entire wag e structure.
U n d e r the p r o t e c t i v e o p e r a t i o n s of the S e c u r i t i e s and
E x c h a n g e Comm i s s i o n , i n v e s t o r s in sec u r i t i e s are en a b l e d to o b
t ain full and ac c u r a t e i n f o r m a t i o n c o n c e r n i n g the r e g i s t e r e d
issues.
R e s t r i c t i o n s on the use of credit in s t o c k m a r k e t trading,
a d m i n i s t e r e d b y the F e d e r a l R e s e r v e Board, have done m u c h to
p r e v e n t e x c e s s i v e s p e c u l a t i o n in that field.
■The F e d e r a l D e p o s i t i n s u r a n c e l e g i s l a t i o n p r o t e c t s
savings of depo s i t o r s , and the s t a b i l i t y of the b a n k i n g
structure is t h e r e b y i m m e n s e l y improved.
the
W h e n a l l .of these f a c t o r s are summarized, t h e y i n d i c a t e
w i t h o u t q u e s t i o n that the n a t i o n a l e c o n o m y .today is m u c h
h e a l t h i e r and s t r o n g e r t h a n it was in the twenties.
W e m u s t c o n c e n t r a t e on those f e a t u r e s of our p r e s e n t s i t
u a t i o n that have e n a b l e d us to m a i n t a i n a b a s i c a l l y sound h i ghlevel economy, a nd we m u s t be a l ert f or a n y d e v e l o p i n g e v i
dence of u n b a l a n c e that m i g h t cause an unnecessary, b r e a k d o w n .
The p r e s e n t p i c t u r e is a r e a s s u r i n g one; but there are a
few u n h e a l t h y symptoms in a d d i t i o n to the i n f l a t i o n a r y p r e s
sures w h i c h I have m e n t i o n e d .
One is the e x tent of real
estate s p e c u l a t i o n and a n o t h e r is the r a p i d rise in co n s u m e r
credit, n o w at r e c o r d levels.
This type of credit e x p a n s i o n
not o n l y c o n t r i b u t e s 1 to i n f l a t i o n a r y p r e s s u r e now, but wil l be
s t r ongly d e f l a t i o n a r y later.
A l l types of loans should be kept on a sound basisi
Spec
ulative b u y i n g should be hel d to a p r o p e r m i n i m u m .
And con
sumer credit s h ould n ot be a l l o w e d to b e c o m e b v e r - e x t e n d e d . A
g r e a t e r an d even, m o r e p r o s p e r o u s f u t u r e faces this n a t i o n if we
are w i s e .
The N a t i o n is f a c e d w i t h a h e a v y ’unfilled d e m a n d f or
houses,, f o r a u t o m o b i l e s , f a r m m a c h i n e r y , f r e i g h t cars,, steely
electrical capacity, n e w schools and h i g h ways;
O ur p o p u l a t i o n
is growing, and a. still g r e a t e r e x p a n s i o n in these f a c i l i t i e s
m a y well be c a lled f o r in the future.
E l e c t r o n i c devices,
plastics, a n d o t h e r n e w inv e n t i o n s are a t t r a c t i n g an i n c r e a s i n g
public demand.
W e hav e o n l y b e g u n to tap the b i l l i o n s of s a v
ings b u i l t up d u r i n g the w a r years. %A 1 1 of these facts t e s t i f y
to the p o w e r f u l r e s e r v e st r e n g t h in our n a t i o n a l economy. ■
F o r w i t h our eyes towa r d the f u t u r e -- w i t h a l e r t n e s s to
detect a nd f o r e s t a l l threats to our e c o n o m i c s t a b i l i t y -- we
m a y count upon c o n t i n u e d p r o s p e r i t y in the y e a r s to come.
oOo
a m
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 i|2
and 117 (a)- (l) of the Internal Revenue Code., as amended by Section 115 of the
Revenue 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* 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
-
2
® |
-
3
>
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 v/ill be made by
the Secretary of the Treasury of the amount and price range of accepted bids.
Those submitting tenders will be advised of the acceptance or rejection thereof.
The Secretary of the Treasury expressly reserves the., right to accept or reject
any or all tenders, in whole or in part, and his action in any such respect shall
be final.
Subject to these reservations, non—competitive tenders for $200,000 or
less without stated price from any one bidder w i l l 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
October 28, 19^-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.
Oitoher 28. lQit-8 »
x&Sk "
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
m m
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS
Friday ■ October PP. 1948 •
The Secretary of the Treasury, by this public notice, invites tenders for
$ QQQ OCQ.OOP
, or thereabouts, of
91 -day Treasury bills, for cash and
r/ ’;'
*
aSb&x
in exchange for Treasury bills maturing October °8 - 1948
, 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
January
27 ,
1949
October
28
1948
3
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
closing hour, two o ’clock p.m., Eastern Standard time,
Monday, October 25, 1948
w
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
than three decimals, e. g., 99.925*
100 , with not more
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
theref or.
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, MOi.NING NEWSPAPERS, “ " : ’
Friday, October 22, 194.8«
Wa s h i n g t o n , d . c .
•
-,
.
.NO.L S-893
t 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 October 28, I948, to be issued on a discouùt basis under competitive and non-competitive bidding as hereinafter
provided. The bills of this series will be dated October 28, 1948, and
will mature. anuary 27, 1949, when the fa.ce 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 Standard-time, Monday, October 25 ,
1948#. Tenders will not be received at the Treasury Departmait, 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,
X is urged that tenders be made on thè printed forms and forwarded in the
special envelopes which m i l be Supplied by Federal Reserve 'Banks or Branches
on application therefore
Tenders will be received without deposit from incorporated banks* and
trust companies and from responsible and recognized dealers in investment
securities, lenders from others must bt,- accompanied by payment of 2 percent
of the face amount of Treasury bills applied for, unless the tenders are
accompanied ty 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 r eservations,
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 Banks on
October 28, 1948, in cash or other immediately available funds or in a like
face amount of Treasury bills maturing October 28, 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
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 othèr excise taxes, whether Federal or State,
but shall be exempt from all taxation now or hereafter imposed on the prin-r*
cipal or interest thereof by any State, or any of tne possessions Ox•the
United States, or.by'any lócài taxing authority* For purposes of taxations
the amount of discount a V which Treasury bills are ori gin filly’sold by the
United States shall be considered to be interest* Under.Sections 42‘and "
117 (a) (1) of the Internal Revenue Code, as ammeded by Section 115 of the
Revenue Act of 19Al, the amount of discount at which bills issued hereunder
are sòld 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 bxlls, (other
thah life insurance companies) issued hereunder need include in his income
tax return only the difference between.the price paid for stich bills, whether
on original issue or on subsequent purchase, and the aàount actually received
eithér upon sale or redemption at maturity during the taxable year for which
th'e return is made, as ordinary gain o3r loss*
Treasury Department ciróular No* 418, as amended, and this notice,
prescribe the terms of the Treasury bills and gevern the conditions of their
issue, Copies of the circular may be obtained from any Federal Reserve Bank
or Branch#
oOo
- 2 -
Leon J . Markham, N atio n al S a le s D ire c to r o f th e United S ta te s Savings
Bonds D iv is io n , to ld th e meeting t h a t vo lu n tee r bond o rg a n iz atio n s a re
being r e a c tiv a te d in ev e ry community in the co u n try.
"There i s no phase o f th e Savings Bond program more im portant than
the work th a t i s being done in the sch ool room," Mr. Markham s a id . "The
c h ild who buys a ten -een t savin g s stamp i s ju s t a s im portant to the w e lfa re
o f t h i s Nation as th e a d u lt American who i s in p o s itio n to in v e s t $ 10 ,0 0 0
in Savin gs Bonds, and no l o c a l bond o rg a n iz atio n i s complete u n less i t
in clu d es in i t s membership e n th u s ia s tic re p re s e n ta tiv e s o f the l o c a l sch ool
system ."
D r. J a r v is M. Morse, head o f th e E d u catio n al S e ctio n o f the Savin gs
Bond D iv is io n , o u tlin ed the p ro g ress o f the sch o o l sa v in g s program, and
p a r t ic u la r ly con gratu lated the sch o o l c h ild e m o f M assachusetts, Rhode Isla n d ,
New York, P en n sylvan ia, Maryland, I l l i n o i s , M ichigan, Kansas, C a lifo r n ia ,
M issouri and the S ta te o f Washington fo r outstanding work.
The conference concluded w ith the adoption o f a recommendation o ffe re d
by Louis T h ie le o f the D e tro it sch o o l system , th a t a permanent N atio n al
Education A d viso ry Committee be d esign ated by S e c re ta ry Snyder to help in the
continuous promotion o f th e school savin g s program in the N ation*s sc h o o ls.
This group would meet p e r io d ic a lly w ith th e S e c re ta ry o f the T reasu ry fo r the
review and development o f the Savin gs Bond program.
LA—
iXQj&oQ
Proposed P re ss R elease
”
'
,vA*
y
^
Under S e c re ta ry Edward’ll* F o ley Jr » today t o ld rep resen tab ive>o f^— ^
th e N ation’ s ed ucation al system assembled in Washington th a t maximum
e f f o r t must be devoted to the s a le of Savin gs Bonds t o non-bank in v e s to rs
«st? ao to provide -foo g r ea te s t possi ble^-amount of -fund e to bo used i n
y>f>4
11 ^ iwmi-m ahls pronouye cm the bank-c r e d it o it u a tio n *”
The meeting of the education al group, c a lle d by S e c re ta ry Snyder to
map out plans f o r e n lis t in g th e continued a id o f teach ers and p u p ils in
the United S ta te s Savin gs Bond program, was attended by the fo llo w in g *
=£sscbsrS4
Arthur Bowie, A ssista n t Superintendent o f Sch o o ls, New fo r k , N* Y *;
Edward A lv e y , Dean, Mary Washington C o lleg e, F red e rick sb u rg , V ir g in ia ;
James E* Bauserman, S u p erviso r o f Elem entary S ch o o ls, F a ir fa x County,
V ir g in ia ; Cyrus L* B u rn ett, A s s is ta n t Superintendent o f P o s t a l S a vin g s,
P o st O ffic e Department, Washington, D* C*; John C allah an , S ta te
Superintendent o f P u b lic In s tr u c tio n , Madison, W isconsin; Mrs* E* L*
Church, P re sid e n t, Michigan Congress o f P aren ts and Teachers, Lansing,
Michigan#
Howard Cummings, A ssista n t f o r Government and Economics, D iv isio n
o f Secondary Education, U* S* O ffi.ce o f Education; James Cummings,
A s s is ta n t D ire c to r , Department o f Education, N atio n a l C ath o lic Wel
f a r e Conference, Washington; A* C* F lo r a , Superintendent o f S ch o o ls,
Columbia, South C a ro lin a ; C a rl F* Hansen, A sso c ia te Superintendent o f
S ch o o ls, Washington, D# C#; M e r r ill F* Harshoro, E xecu tive S e c re ta ry ,
N a tio n a l C ouncil fo r the S o c ia l S tu d ie s, N atio n al Education A sso c ia tio n ;
Floyd W* Larson, N atio n a l S e c re ta ry , American I n s t it u t e o f Banking,
New Y ork, N. Y ; J* L* M c C a sk ill, A sso c ia te S e c re ta ry , Department o f
Higher E ducation, N atio n a l Education A sso c ia tio n ; M iss W inifred Newman,
A s s is ta n t Superintendent o f S ch o o ls, C h arleston , West V ir g in ia ; W* L*
N ich o las, P re sid e n t, Peru Teachers C o lle g e , P eru, Nebraska; M iss Eva G*
P inkston, E xecu tive S e c r e ta iy , Department o f Elem entary School P rin
c ip a ls , N atio n al Education A sso c ia tio n ; Bobert G* Smith, S ta te Depart
ment o f Education, S p r in g fie ld , I l l i n o i s ; Louis T h ie le , D iv is io n a l
D ire c to r, E xact S c ie n c e s, D e tro it P u b lic S ch o o ls, D e tr o it, Michigan*
In ad d ressin g the group, Under S e c re ta iy F o le y b r i e f l y reviewed
debt management problems* “ These problems“ , he sta te d , “ a re the concern
o f 146 m illio n Americans* They w i l l be met through the poolin g o f the
b est thought and e f f o r t s o f people l ik e you, who s i t around the ta b le
to a d v ise t h e ir Government, and then go out to c a r r y th e su ggestio n s
developed in to a c tio n *"
RELEASE, MORNING NEWSPAPERS,
Friday, October 22» 1948«
No* S— 894
Under Secretary Edward H* Foley Jr* today told representatives of
the Nation’s educational system assembled!, in Washington that maximum
effort must be devoted to the sale of Savings Bonds to non-bank investors
*to assist the Treasury in'.its anni h i l a t i o n •efforts to;rcduce tho
amount of bank-held debt”«*
...
'
The meeting of the group, called by Secretaiy Snyder to map out
plans for enlisting the continued aid of teachers and pupils in the
United States Savings Bond program was attended by the following:
Arthur Bowie, Assistant Superintendent of Schools, New York, N* Y*;
Edward Alvey, Dean, Mary Washington College, Fredericksburg, Virginia;
James E* Bausermai, Supervision of Elementary Schools, Fairfax County,
Virginia; Cyrus L* Burnett, Assistant Superintendeht of Postal Savings,
Post Office Department, Washington, D* C*; John Callahan, State Super
intendent of Public Instruction, Madison, Wisconsin; Mrs* E* Lc Church,
President, Michigan Congress of Parents and Teachers, Lansing, Michigan*
Howard Cummings, Assist® t for Government and Economics, Division of
Secondary Education, U* S„ Office of Education; James Cummings, Assistant
Director, Department of Education, National Catholic Welfare Conference,
Washington; A 0 C* Flora, Superintendent of Schools, Columbia, South
Carolina; Carl F* Hansen, Associate Superintendent of Schools, Washington,
D* C*; Merrill F* Hartshorn, Executive Secretary, National Council for
the Social Studies, National Education Association; Floyd W* Larson,
National Secretary, American Institute of Banking, New York, N* Y*;
J* L© McCaskill, -Associate Secretary, Department of Higher Education,
National Education Association; Miss Winifred Newman, Assistant Super
intendent of Schools, Charleston, West Virginia; W* L* Nicholas,
President, Peru Teachers College, Peru, Nebraska; Miss Eva G* Pinkston,
Executive Secretary, Department of Elementary School Principals, National
Education Association; Robert G* Smith, State Department of Education,
Springfield, Illinois; Louis Thiele, Divisional Director, Exact Sciences,
Detroit Public Schools, Detroit, Michigan*
In addressing the group, Under Secretary Foley briefly reviewed debt
management problems* ’’These problems,” he stated, ’’are the concern of
I46 million Americans* They will be met through the pooling of the best
thought and efforts of people like you, who sit around the table to advise
their Government, and then go out to carry the suggestions developed into
action*”
- 2 ~
Leon J. Markham, National ^ales Director of the United States Savings
Bonds Division, told the meeting that volunteer bond organizations are
being reactivated in every community in the country*.
"There is no phase of the Savings Bond program more important than
the work that is being done in the school room,” Mr* Markham said. "The
chila who buys a ten—cent savings stamp is just as important to the welfare
of this Nation as the -adult American who is in position to invest $10,000
in Savings Bonds, and no local bond organization is complete unless it
includes in its. membership enthusiastic representatives of the local school
system*"
Dr* Jarvis M* Morse, head of the Educational Section of the Savings
Bond^Division, outlined the progress of the school savings program, and
particularly congratulated the school children of Massachusetts, Rhode
Island, New York, Pennsylvania, Maryland, Illinois, Michigan, Kansas,
California, Missouri and the State of «feshington for outstanding work»
The conference concluded with the adoption of a recommendation offered
by Louis Thiele of the Detroit school system, that a permanent National
Education Advisoiy Committee be designated by Secretary Snyder to help in
the centincus promotion of the school savings program in the Nation1s
schools* This group would meet periodically with the Secretary of the
Treasury for the review and development of the Savings Bond program.
0O0
FOR IMMEDIATE RELEASE
Odorgo J. schoeneman, Commissioner of Internal Revenue, announced
today a reorganisation and expansion of the Excess Profits Tax Council,
designed to expedite the processing of refund claims resulting from the
wartime excess profits tax.
Henry J. Merry mill continue as chairman of the council, but will
be assisted by a vice chairman and an executive committee of five mem
bers, including the chairman and vice chairman. The executive committee
Is empowered to exercise, on behalf of the commissioner, final authority
on all policy, procedure, and other decisions arising from excess profits
tax claims
m under Section 722 of the Internal Revenue Code.
This procedure will free other members of the council to demote full
time to the hearing and deciding of actual cases. Furthermore, to enable
the processing of larger numbers of oases, the number of council positions
will be Increased from the present authorisation of 15 members to 25
members. As soon as new members with the necessary qualifications oan
be selected, this expansion will provide 20 members devoting full time
to processing actual cases snd five members devoting themselves primarily
to the deciding of policy matters.
Council Member Clarence A. McLaughlin has been designated vice
chairman. The executive committee will consist of Chairman Merry, Vice
Chairman McLaughlin, and Members Henry J. Donnelly, Jr., John H. Bready,
and Henry C. Lowenhaupt.
Ss?igj ’ter./#
I T Un
o - k i*
U
h
>0
TREASURY DEPARTMENT
In f o r m a t io n S e r v i c e
WASHINGTON, D .C .
FOR M E D I A T E RELEASE,
Friday, October 22, 19¿8.
No* S-895
George J. Schoeneman, Commissioner of Internal Revenue, announced
today-a reorganization and expansion of the Excess Profits Tax Council,
designed to expedite the processing of refund claims#resulting from the
wartime excess profits tax*
Heiry J* Meriy will continue as chairman of the council, but will
be assisted by a vice chairman and an executive committee of five mem
bers, including the chairman and vice chairman* The executive committee
x s empowered to exercise, on behalf of the Commissioner, final authority
on all policy, procedure, and other decisions arising from excess profits
tax claims under Section 722 of the Internal Revenue Code#
This procedure will free «other members of the council to devote full
time to the hearing and deciding of actual cases. Furthermore, to enable
the processing of larger numbers of cases, the number of council positions
will be increased from the present authorization of 15 members to 25
members. As soon as new members with the necessary qualifications can
be selected, this expansion will provide 20 members devoting full time
to processing actual cases and five members devbting themselves primarily
to the deciding of policy matters*
Council Member Clarence A© McLaughlin has been designated vice
chairman. The executive committee will consist of Chairman Merry, Vice
Chairman McLaughlin, and Members Henry J. Donnelly, Jr#, John N. Bready,
and Henry C# Lowenhaupto
oOo
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 U2
and 117 (a) (1) of the Internal Revenue Code, as amended by Section ll£ of the
Revenue Act of 19hl, 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 any Federal Reserve Sank 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 o± 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 ail tenders, in whole or in part, and his action in any such respect sho.ll
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 oids.
Settlement for
accepted tenders in accordance with the aids must be made or completed at the
Federal Reserve Bank on
November It. 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,
November
k> 1?U8 •
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
TREASURY DEPARTMENT
Washington
W & .
FOR RELEASE, MORNING NEWSPAPERS*.
Tuesday, October 26, I 9I4.8 .
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
m ----;
~m~
in exchange for Treasury bills maturing November in 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
February 3, 19U9
—
m
-------They will be issued in bearer form only, and in denominations of
interest.
November In 19U8
, and
'
p*
'
, when the face amount will be payable without
$1,000,. $5,000, $10,000, $100,000, $500,000, and $1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the
closing hour, two o*clock p.m., Eastern Standard time,
Friday, October 29* 1 9 W
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
theref or.
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
X
- sIC
2 §
I
lililillillllfilil
TREASURY DEPARTMENT
Information Service
BELEASE, MOANING NEWSPAPERS,
Tuesday, October 26« 194.8#
WASHINGTON, D .C .
No# S*,
»896
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 November 4* I948, to be issued on
a discount basis under competitive and non-competitive bidding as hereinafter
provided# The bills of this seriës will be dated November 4, 1948, and
will mature February 3, 1949, 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 0 rclock p#m«, Eastern Standard time, Friday, October 29,"
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 ox
competitive tenders the price offered must be expressed on the basis of 100,
wiuh not more than three decimals, e# "g# 99*925* ..Fractures may not. be used#
It is urged that tenders be made on the printed forms and /oryarded in the
special envelopes which, wil.u'be supplied by Fédéral 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 Banka and Branches, following which public announcement will
be made by the Secretary of the Treasury of the amount and price range of
accepted bids# Those submitting tenders will be advised of the acceptance
or rejection thereof# The Secretary of the Treasury express!, y 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 $200,000 or less withoüt stated price from any
one bidder will be accepted in full at the average price (in three decimals)
of accepted competitive bids# Settlement for accepted tenders in accordance
with the bids must be made or completed at the Federal Reserve Banks on
November 4> 1948, in cash or other immediately available funds or in a like
face amount of Treasury bills maturing November 4> l948o Cash and exchange
tenders-will receive equal treatment* Cash adjustments will be made for
differences between the par value of maturing bills accepted in exchange
snd the issue price of the new bills#
**fsi
The income derived from Treasury bills, whether interest or gain from
the sale or other disposition of the bills, shall not have any exemption, as
such, and loss from the sale or other disposition of Treasury bills shall
not have any special treatment, as such, under the Internal
or laws amendatory or supplementary thereto* The bills shall be subject to
estate, inheritance, gift or other excise taxes, whether Federal' or State,
but shall be exempt from all taxation, now or hereafter imposed on the prin
cipal or interest thereof by any State, or any of the possessions of the
United States* or by any local taxing authority* For purposes of taxation
the amount of discount at which Treasury bills are originally sold by the
United States shall be considered to be interest. Under S«ctio.ns 42
117 (a) (1) of the Internal Revenue Code, as amended by Section 11$ ox the
Revenue Act of 1941, the amount of discount at which bills issued hereunder
are sold shall not be considered to accime 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 No* 418, as amended, and this notice,
prescribe the terms of the Treasury bills and govern the conditions of thair
issue« Copies of the circular may be obtained from any. Federal Reserve Bank
or Branch*
oOo
nsuusi» mmxm
ì
wmmt* ( m m m
ss. m s »
w
m
»
5
Tfeo Saerataxy 0f tho Treasury
- *
1
ì
Xa*t «▼•alag tfeat th® t«adt?i for
$900,000,000, or tkarwabout*, @t 11*1^ Tra«««*? M I ÌM to fee dated Ootober 88, 1948,
«ad to itti» Januaxy 87, 1949p m b U h
mm
off®r®4 Getober it# 1948, «or® ©pea®d
at I l o FodorcuL S o m r?e Baal» oa OetoBer 2 5 .
Tbe d o ta li« o f th ia laeue aro a« fo llo w ®:
T o ta l «pjOlod *o* - # 1,74 0 ,6 4 0 ,0 0 0
TOtal aeeaptod
9 0 1,^04,000
ITttrag® p r ie ®
* 99*717
(ln elu d ®« 16 6 ,8 7 1,0 0 0 aatered oa a non« o n p e titlT ® B aal« «ad aoe*pt®d l a f u l l at
tB® a ra ra g ® p r ia ® «Beva B elo ®)
E q u iva le» ! r a t ® o f discount apprese, X * lf0 S p a r anmim
iamg# o f aeoap tat com petitive bidet
Iflffe
Loir
* 99,789 E q u lv alea t r a t ® o f d lse e u a t ap p ro *. 1.10 0 JÌ p a r w i
• 99*715
n
m
m
m
m
1,XS7JÉ *
*
(50 pareaat of tbe ataount Bid for at th* low prie® waa aeeeptad)
#1,740,640,000
6901,304,000
£9,éio,ooo
PBll&dalpBia
Cleveland
Richmond
Atlanta
CBlo&go
èt» leale
MlaaeapolX#
Kansas 81ty
Balla«
Sa» FraneIseo
■
1,458,762,000
£6(740,000
15,000,000
4,818,000
5,687,000
105,728,000
4,168,000
6,398,000
18,468,000
16,178,000
„ 77,484.000
Total
Aoeaptad
i 83,010,000
667,666,000
19,740,000
18,680,000
4,515,000
5,6B7,000
65,152,000
4,168,000
8,295,000
15,465,000
15,108,000
59,964,000
Total
Applied for
Foderai Baaarr®
Bistriet
Boato»
B®w lork
TOTAl
TREASURY DEPARTMENT
Information Service
WASHINGTON. D .C .
RELEASE, MORNING NEWSPAPERS,
Tuesday, October 26, 194.8
No* S-^897
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 October 28,
1948, and to mature January 27, 1949* which were offered October 22, 1948,
were opened at the Federal Reserve Banks on October 25«
The details of this issue are as follows:
Total applied for — $1,740,640,000
Total accepted
—
901,204,000 (includes $56,871,000 entered on a noncompetitive basis and accepted in full
at the average price Shown below)
Average price
— 99*717 Equivalent rate of discount approx* 1*120$
per annum
Range of accepted competitive bids:
High
Low
•
— 99*722 Equivalent rate of discount approx* 1*100$
per annum
— 99*715 Equivalent rate of discount approx. 1*127$
per annum
(30 percent of the amount bid for at the low price was accepted)
Federal Reserve
District
Total
Applied for
Total
Accepted
Boston ..
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St* Louis
Minneapolis
Kansas City
Dallas
San Francisco
$
$
TOTAL
4,165,000
8,295,000
15 .465.000
16,175, 000
77.484.000
23 ,010,000
667,666,000
19 .740.000
13.680.000
4.315.000
3.627.000
65.152.000
4.165.000
8.295.000
15.465.000
16.105.000
59,984,000
$1 ,74O,640,000
$9 01 , 204,000
29,810,000
, ,
1 433 762,000
26.740.000
15, 080,000
4.315.000
3 .627.000
105 ,722 ,000
-
2
-
“The American Legion has volunteered to help the Treasury Department
in its battle against inflation by spearheading a special Savings Bonds pro
motion campaign to begin on November 11, Armistice Day, and run for a
month* I expect to go on the air, eoast-to-^eoast on the Kraft Music Ball
Program, 9*00 to 9*30 P*M*, SST, November 11 to announce this appeal to
all Legion Posts to get behind it, not only during that month but indefin
itely*
“Our National Headquarters has accepted a three-point program for
specific action and is recommending it for adoption by all Posts and Auxil
iaries* Here it isj
H(l) To get our members to buy Savings Bonds regularly on the Payroll
Savings Plan "where they work, on the Bond-A-Month Plan where they bank, or
if neither of these automatic plans is available to a member, to buy Bonds
as often as he or she can at any bank or post office*
tt(2) To get the firms represented in our membership that are not now
offering the Payroll Savings Plan to install the Plan and promote it ac
tively among their employees* The Payroll Savings Plan is the only way to
buy Bonds on partial payments - aid 72 million Americans are now taking ad-,
vantage of it*
“(3) To get the firms represented in the -membership that cariy news
paper or radio advertising to run Savings Bonds ads or programs as part of
their regular advertising schedules* Your newspapers have ad mats; your
radio stations have Savings Bond commercials available for sponsoring*
“As soon as a Post can certify to the local Savings Bonds Committee,
city or county, that a majority - over 50% - of its membership is taking
part actively in buying and promoting Bonds under this three-point program
(whichever points may apply in the individual case) a special TREASURE
CITATION will be awarded to the Post*
“Certainly that is a simple and practical way for Legionnaires to help
solve the chief domestic problem that confronts all Americans in this critical
time: to keep America strong and make America stronger by getting our economy
into balance, stopping price inflation and avoiding a depression that would
inevitably follow a runaway inflation* A nation can be no stranger than its
economy - and building a sound economy begins at home, literally, with the
income earner and the family* If enough of our people manage thdir money
thriftily, spend wisely and save all they can, they not only build financial
security for themselves; they build economic security and stability for the
nation•“
o O
t>
TREASURY DEPARTMENT
Washington
ffiQü N IiK ii'SR jirSR &i
The United States Savings Bonds Division will launch a 30-day
special promotion campaign starting November 11, Armistice Day,
Secretary Snyder announced today.
The chief objectives of this new Savings Bonds sales effort, as
outlined by National Director Vernon L* Clark, and Director of Sales
Leon J. Markham of the .Savings Bonds Division are as follows;
To add 1,500 large firms and 1,250,000 workers to
payroll Savings.
To add 150,000 participants in .the Bond-A-Month
Plan in cooperation with local banks.
To carry the Buy-Bonds message to every farm
family in America.
To develop the best possible thrift program for
young Americans in the Nation*s schools.
To continue to bring to the' attention of all
Americans the merits of Savings Bonds investment for
the security of the individual and the Nation.
The spearhead of the 30-day promotion will be the American
Legion, which, Secretary Snyder said, has volunteered to enlist the
help of its 17,000 local posts throughout the country.
Secretary Snyder said the Legionnaires in every local community
will set a fine example for all citizens in helping to maintain a
sound economy, which is the basis for our continued efforts for world
peace and security.
The Secretary extended to Legion National Commander S. Perry
Brown the Treasury*s earnest hopes for a successful Savings Bonds
campaign in every community, and. called attention to the following
message which the National Commander has sent to each of the 17,000
local Legion Posts throughout the Nation, setting forth the
Legion's 3-point program for specific local action.
TREASURY DEPARTMENT
Information Service
M E D I A T E RELEASE
Friday, .October 29_; 19AS
WASHINGTON. D .C .
No. S-893
The United States Savings Bonds Division will launch a 30-day
special promotion campaign starting November 11, Armistice Day,
Secretary Snyder announced today.
The chief objectives of this new Savings Bonds sales effort, as
outlined by National Director Vernon L. Clark, and Director of Sales
Xeon J, Markham of the Savings Bonds Division are as followss
To add 1,500 large firms and 1,250,000 workers to
Payroll Savings.
To add 150,000 participants in the Bond-A-LIonth Plan
in cooperation .with local banks*
To carry the Buy—Bonds message to every farm family
in America.
To develop the best possible thrift program for young
Americans in the Nation’s schools.
To continue to bring to the attention of all Americans
the merits of Savings Bonds investment for the security of
the individual and the Nation.
The spearhead of the 30-day promotion will be the American legion,
which, Secretary Snyder said, has volunteered to enlist the help of its
17,000 local posts throughout the country.
Secretary Snyder said the Legionnaires in every local community will
set a fine example for all citizens in helping to maintain a sound
economy, which is the basis for our continued efforts for world peace and
security.
The Secretary extended to Legion National Commander S„ Perry Brown
the Treasury*s earnest hopes for a successful Savings Bonds campaign in
every community, and called attention to the following message which the
National Commander has sent to each of the 17,000 local Legion Posts
throughout the Nation, setting forth the Legion’s 3-point program for
specific local action.
2
“The American Legion has volunteered to help.the Treasury Department
in its battle against inflation by spearheading a special Savings Bonds
promotion campaign to begin on November 11, Armistice Day, and run for a
month, I expect to go on the air, coast-to— coast on the Kraft Music Hall
Program, 9*00 to 9*30 P , M „ EST, November 11 to announce this appeal to
all Legion Posts to get behind it, not only during that month but
indefinitely,
"Our National Headquarters has accepted a three-point program for
specific action and is recommending it for adoption by all Posts and
Auxiliaries, Here it is*
n (l) To get our members to buy Savings Bonds regularly on the Payroll
Savings Plan ■where they work,' on the Bond-A-llonth Plan where they bank, or
if neither of these automatic plans is available to a member, to buy Bonds
as often as he or she can at any bank or post office,
"(2) To get the firms represented in our membership that are not now
offering the Payroll Savings Plan to install the Flan and promote it
actively among their employees. The Payroll Savings Plan is the only m y
to buy Bonds on partial payments — and 7s million Americans are now taking
advantage of it,
"(3) To get the firms represented in the membership that carry news
paper or radio advertising to run Savings Bonds ads or programs as part
of their regular advertising schedules, Your newspapers have ad mats;
your radio stations have Savings Bond commercials available for sponsoring,
"As soon as a Post can certify to the local Savings Bonds Committee,
city or county, that a majority — over 50% — of its membership is taking
part actively in buying and promoting Bonds under this three-point program
(whichever points may apply in.the individual case) a special TREASURY
CITATION will be awarded to the Post,
"Certainly that is a simple and practical way for Legionnaires to
help solve the chief domestic problem that confronts all Americans in this
critical time* to keep(America strong and make America stronger by getting
our economy into balance, stopping price inflation and avoiding a depression
tliat would inevitably follow a runaway inflation, A nation can be no
stronger than its economy — and building a sound economy begins at home,
literally, with the income earner and the family. If enough of our
people manage their money thriftily, spend wisely and save all they can,
they not only build financial security for themselves; they build economic
security and stability for the Nation,"
~
0 0 0 -
RELEASE, MORNING NEWSPAPERS,
Saturday. October 30« 1948.
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 November 4,
1948, and to mature February 3, 1949, which were offered October 26, 1948, were
opened at the Federal Reserve Banks on October 29*
The details of this issue are as follows:
Total applied for - #1,312,532,000
Total accepted
*•
801,197,000 (includes #47,178,000 entered on a non
competitive basis and accepted in full at
the average price shown below)
Average price
- 99*715 Equivalent rate of discount approx. 1.129$ per annum
Range o f accepted competitive bids: (excepting one tender totaling #100,000)
High
Low
- 99*719 Equivalent rate of discount approx. 1.112$ per annum
- 99*713
*
h
b
«
»
1.135$ "
"
(31 percent of the amount bid for at the low price was accepted)
Federal Reserve
District
Total
Applied for
Total
Accepted
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
$
15,348,000
996,799,000
27,380,000
42,685,000
5,720,000
7,547,000
85,888,000
7,200,000
9,255,000
21,884,000
8,197,000
84.629.000
» 15,348,000
520,144,000
20,430,000
42,685,000
5,720,000
7,547,000
59,158,000
7,200,000
9,255,000
20,884,000
8,197,000
84.629.000
#1,312,532,000
#801,197,000
TOTAL
MâFerrich
RELEASE, MORNING NEWSPAPERS,
Saturday, October 30, 1948*
N o , S-899
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 November A,
1948, and to mature February 3, 1949, which were offered October 26, 1948, were
opened at the Federal Reserve Banks on October 29*
The details of this issue are as follows:
Total applied for -* $1,312,532,000
Total accepted
801,197,000 (includes $47,178,000 entered on .a non
competitive basis and accepted in full
at the average price shown below)
Average price
— 99*715 Equivalent rate of discount approx» 1*129$
per annum
Range of accepted competitive bids: (execpting one tender totaling $100,000)
High
Low
- 99*719 Equivalent rate of discount approx* 1*112$
per annum
- 99*713 Equivalent rate of discount approx» 1*135^
per annum
(31 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
Chic ago
St* Louis
Minneapolis
Kansas City
Dallas
San Francisco
$
TOTAL
Total
Accepted
27,380,000
42,685,000
5,720,000
7,547,000
85,888,000
7,200,000
9,255 «000
21,884,000
8,197,000
84,629,000
15 ,348,000
520,144,000
20,430,000
42,685,000
5,720,000
7,547,000
- 59,158,000
7,200,000
9*255,000
20*884,000
8,197,000
84,629*000
$1,3X2,532,000
$801,197,000
15,348,000
996,799,000
0O 0
$
.J*'.
Là
Qot>-
EARNINGS, EXPENSES, AND DIVIDENDS OP NATIONAL BANKS IN THE SIX
MONTH PERIODS ENDED JUNE 30 , 1948 AND JUNE 30 , I9U 7 , AND THE
YEAH ENDED DECEMBER 3 1 , 19^-7 - Continued
______________ (Amounts in thousands of dollars)_______________
.
6 months ended
• June 30, : June 30 ,
•
: 19 U 7
Recoveries, transfers from reserve accounts,
and pröfits:
On securities:
Profits on securities sold or redeemed...... .
On loans:
Recoveries.......................... ...........
Transfers from reserve accounts 1/............
All other*................. ......................
TOTAL RECOVERIES, TRANSFERS PROM RESERVE
ACCOUNTS AND PROPITS.............. ........
Losses, charge-offs, and transfers to reserve accounts;
On securities:
^11,5 4 1
3,105
TOTAL LOSSES, CHARGE-OFFS AND TRANSFERS
TO RESERVEACCOUNTS........
PROFITS BEFORE INCOMETAXES......................
Taxes on net income:
Federal..... ............................ .........
State...................
TOTAL TAXES ON. NET INCOME...................
NET PROPITS BEFORE DIVIDENDS.........................
Dividends declared:
On preferred stock........ .................... ..
On common stock;
TOTAL DIVIDENDS DECLARED....................
Number of hanks j|/,
Annual rate of net profits;
To capital funds
......
Annual rate of cash dividends:
Tot capital funds j$/......
1/
19^7
$13,00 1
$ 25,571
—
—
22,04l
35,907
61,421
16,586
3,190
14,548
^ 3,629
—
—
25.^27
11,779
29,991
81,890
75,235
160,612
25,845
26,146
69,785
13.665
On loans:
Losses and charge-offs,
Year ended
Dec. 31»
—
—
15,820
85,644
11,104
15,797
73 ,5^2
11,^93
25,639
152,078
285,119
53,^36
3*10,981
168,966
S3,179
5,074
SS,253
196,866
93,772
5,511
172,6l4
10,143
99,283
24i ,698
132,757
^52,983
592
73^
1,372
85,906
18,821
182,147
91,801
l4,4i6
100,809
109,461
5,004
5,018
Percent
Percent
M
H
M
r
635.71«)
23,^50
206,969
5,011
Percent
7.10
9.11
8.36
3.33
3.26
3.39
Not reported separately in 19*1-7. Included with recoveries.
2/ Includes reserves established by 1,877 banks under the provisions of Item
Internal Revenue Code — not heretofore reported separately.
¿/ At end of period.
23
(k)l of th|
< fO b
-•T"EARNINGS, EXPENSES, AND DIVIDENDS 07 NATIONAL BANKS IN THE SIX
MONTH PERIODS ENDED JUNE 30, 19 *1$ AND JUNE 30, 19 ^ 7 , AND THE
TEAR ENDED DECEMBER 3 1 , 19^7
(Amounts in thousands of dollars)
:
6 months ended
♦ June 3 0 , 1 June 30»
i
WU8
: 10U7
Capital stock* par values 1/
Preferred............ .............. TfI|rt
Common*
TOTAL nAPTTAT, fwomr
$23,898
1,780,9»
1,804,862
Oapital funds 1 ^**»*•# «^•*•••»****••******* **.* 5.5*15,768
Earnings from current operations:
Interest and dividends!
On U*S* Government obligations*...........
294,780
On other securities*.................__T+
54,604
Interest and discount on loans*......... .
»¿3,091
Service charges on deposit accounts...... .
*»7 , 5 6 1
Other service charges* commissions* fees*
and collection and exchange charges*...***
26,824
Trust department*........... ......... ,,
26,84^
Other current earnings*......... .
52,487
TOTAL EARNINGS PROM CURRENT
OPERATIONS.......................
9 2 6 ,19 0
Current operating expenses:
Salaries and wages:
Officers#..•*«•*•.••••••••••••••»••»••*•••
Employees other than officers**...... .
Fees paid to directors and members of
executive* discount* and advisory
committees**•••••*•••*••••••*•••••«•*•••*
Interest on time deposits (including
savings deposits)**.... ..*.........
Taxes other than on net income.....______ _
Recurring depreciation on banking house*
furniture and fixtures*....*..............
Other current operating expenses........___
TOTAL CURRENT OPERATING EXPENSES.....
NET EARNINGS FROM CURRENT OPERATIONS........
1/ At end of period*
: Tear ended
1
Dec* 3 1 *
«
1QU7
$28,359
»( *1-2 *0 3 7
1 ,7 7 0 .9 9 6
5 ,3 0 8 ,6 8 0
Ao7
flfllA
¥
¿1 »WU
1.755.564
1.783.404
5,431,959
312,727
51*#«
32S,829
to* 203
620,531
Av/^|ACv
26 *0 9 2
53,266
55,063
1
25*552
50,677
7 0 6 ,3 19
83.3*12
1 0 1 ,19 3
8 3 6 ,1 2 s
1,724,834
93,432
174,4l4
83,983
157,117
178,354
333.1*13
>1,699
•1,317
9.182
87,194
80,583
28,861
16 3 ,2 8 6
570*663
10,871
151,214
516,946
24,146
313,558
1,080,740
355*307
319*W2
644,094
3 0 ,1 9 0
11.935
1 6 9 ,0 1 9
59.071
I
-
amounts to 7*3-0 percent of capital funds.
2
0£ >
-
This is an apparent reduction in net
profits before dividends of $44,832,000 from the first half of 19^7 3>ut a compar
ison of the results of the current period with the similar period in 1947 and
previous years is not practical owing to reserve accounts amounting to $9 9 ,3 0 9 »000
charged out of current earnings, largely the reserve for bad debts utilized by
1,877 national banks under the provisions of Mimeograph 6209 issued by the Bureau
of Internal Revenue in December 1947.
Cash dividends declared on common and preferred stock totaled $92*393*000 in
comparison with $86,6^10,000 in the first half of 1947.
The annual rate of cash
dividends was 3*33 percent of capital funds and was 46.93 percent of the net
profits available.
The remaining 53*07 percent of net profits, or $104,473*000,
was retained by the banks in their capital accounts.
On June 30, 1948, there were 5*004 national banks in operation, which was a
decrease of 14 banks since June 30» 1947*
ÏB ÏÏÔ .SU E Ï DEPAlCCÎlBiiSÏ
Comptroller of the Currency
Washington
fc*-- y
/
Press Service
Ho. 5
f o ¿)
Controller of the Currency Preston Delano announced today that the national
hanks in the United States and possessions reported net operating earnings of
$355*307*000 for the six months ended June 3 0 * 1948, an increase of $36,125*000
over the first half of 1 9 ^7 *
Gross earnings were $9 2 6 ,1 9 0 ,000 . This was an increase of $9 0 ,0 6 2 ,0 0 0 over the
gross earnings for the first six-months of 1947.
The principal item of operating
earnings in the first half of 1948 was $423*091 *000 from interest and discount on
loans, which was an increase of $94,262,000 compared with the corresponding period in
19 1 *7 .
Other principal items of operating earnings were $294,780,000 from interest
on United States Government obligations and $5**»604,000 interest and dividends on
other securities, a total of $349,384,000, which was a reduction of $15,191*00° com
pared to the first half of the previous year, and $47,561,000 from service charges
on deposit accounts, an increase of $7,358,000.
Operating expenses, excluding taxes
on net income, were $5 7 0 ,8 8 3,0 0 0 as against $516,946,000 for the first half of 1947.
The principal operating expenses were $272,545*000 for salaries and wages of officers
and employees and fees paid to directors, an increase of $2 7 *12 8 ,0 0 0 over the first
half of 1947, and $87,194,000 expended for interest on time and savings deposits, an
increase of $6 ,6 1 1 ,000 .
Adding to the net operating earnings the profits on securities sold or redeemed
of $22,041,000, and recoveries on loans and investments (including recovery of
reserves previously charged out) of $59*849,000, and deducting therefrom losses
and charge-offs (including current charge-outs for reserve purposes) of $1 5 2 ,0 7 8 ,000 ,
and taxes on net income of $8 8 ,2 5 3 ,0 0 0 , the net profits before dividends for the
six months ended June 3°, 1948 amounted to $1 9 6 ,86 6 ,0 0 0 which, at an annual rate,
TREA.SUHI DEPARTMENT
Comptroller of the Currency
Washington
RELEASE, MORNING NEWSPAPERS,
Friday, November 5» 1948
No. S-900
Comptroller of the Currency Preston Delano announced today that the
national banks in the United States and possessions reported net operating
earnings of §355*307,000 for the sik months ended June 30, 1948* an in
crease of $36*125,000 over the first half of 1947»
Gross earnings were «$926,190,000* This was an increase of $90*062,000
over the gross earnings for the first six months of 1947« The principal
item of operating earnings in the first half of 1948 was $423*091*000 from
interest and discount on loans, which was an increase of $94*262,000 com
pared with the corresponding period in 1947» Other principal items of
operating earnings were $294*780,000 from interest on United States •
Government obligations and $54*604,000 interest and dividends on other
securities, a total of $349*384*000, which was a reduction of’§15*191,000
compared to the first half of the previous year, and $47*561,000 from
service charges on deposit accounts, an increase of §7,358*000. Operating
expenses, excluding taxes on net income, were §570*883,000 as against
§516,946,000 for'the first half of 1947. The principal operating expenses
were §272,545,000 for salaries and wages of officers and employees and
fees paid to directors, an increase of §27,128,000 over the first half of
1947, and §87,194,000 expended for interest on time and savings deposits,
an increase of §6,611,000 *
Adding to the net operating earnings the profits on securities sold or
redeemed of §22,041,000* and recoveries on loans and investments (including
recovery of reserves previously charged out) of $59*849,000, and deducting
therefrom losses and charge-offs (including current Charge-outs for reserve
purposes) of $152,078*000, and taxes on net income of $88,253,000, the net
profits before dividends for the six months ended June 30 j 1948 amounted to
$196,866,000 which, at an annual rate, amounts to 7.10 percent of capital
funds* This is an apparent reduction in net profits before dividends of
$44,832,000 from the first half of 1947 but a comparison of the results of
the current period with the similar period in 1947 and previous years is
not practical owing to reserve accounts amounting to $99*309,000 charged out
of current earnings, largely the reserve for bad debts utilized by 1,877
national banks under the provisions of Mimeograph 6209 issued by the Bureau
of Internal Revenue in December 1947*
Cash dividends declared on common and preferred stock totaled
$92,393,000 in comparison with $86,640,000 in the first half of 1947. The
annual rate of cash dividends was 3.33 percent of capital funds and was
46.93 percent of the net profits available. The remaining 53*07 percent
of net profits, or $104,473,000*, was retained by the banks in their capital
accounts.
On June 30, 1948, there were 5,004 national banks in operation, which
was a decrease of 14 banks since June 30, 1947.
2~
EARNINGS. EXPENSESj AND DIVIDENDS OF NATIONAL BANKS IN THE SIX
MONTH PERIODS ENDED JUNE 30, 1948 AND JUNE 30, 1947, AND THE
\
* YEAR ENDED DECEMBER 31, 1947
(^mounts in thousands of dollars)
6 months ended
June 30,
June 30,"
1947
1948
Capital stock, par value: l/
$23^898
Preferred* «•*.*•••.......... *
.... .
1.780.964
C ommon** *• *^ • »••*•*••• *w.
1.804,862
TOTAL CAPITAL STOCK...................
"'4" 4
1545:768
Capital futiqs l/*»»*«*.*•>-,••♦**,•*•*•♦•♦
Earnings from current operations:
Interest and dividends:
294,780
On U* S* Government obligations**••**
54,604
On other securities*.*.•*.*..•••*.**#
423,091
Interest and discount on loans**••.*•••
47,561
Service charges on deposit accounts****
Other service charges, commissions, fees
26,824
and collection and exchange charges**
26,843
Trust department***••••*»••...*•••#•*##«
52,487
Other current earnings•«•••••••«•♦•••••*
TOTAL EA TIN G S -FROM CURRENT
926,190
OPERATIONS * * * * * • * * • . * • • • • • • • • • • *
Current operating expenses:
Salaries and wages:
Officers**** •*>#*.♦ #•♦*.**•••*♦••*« •.*-••*
Employees other than officers***•**.«•*
Fees paid to directors and members of
exe cutive, disc ount, and advis oiy
, committees****, *♦•♦♦• •*.••••**•****•••
Interest on time deposits (including
sayings deposits )••*•••**..••»•»•«•»»»»
Taxes other than on net income**»*«»-•«••
Recurring depreciation on banking house,
furniture and fixtures *••#«•••••* **•• »
Other current operating expenses**••♦**#
TOTAL CURRENT OPERATING EXPENSES
NET EARNINGS EROl] CURRENT OPERATIONS,. . * * *
1/
At end of period*
Year ended
Dec* 31,
1947
023,359
027,840
1,742,637______1.755.564
1.770.996
1,783,404
A
Tc57>
c >rn n c n
5.308.680
57431,959
312,727
51,848
328,829
620,531
105,120
40,203
706,319
83,342
26,092
25,552
50,877
53,266
55,063
101,193
836,128
1,724.834
174,414
83,983
157,117
178,3,54
333,143
4,699
4,317
9,182
87,194
30,190
80,583
28,861
163,286'
59,071
11,935
169,019
570.885
10,871
151,214
516,946
24,146
313,558
1,080,740
355,307
319,182
644.094
93,432
■
3
**
EARNINGS EXPENSES } AND DIVIDENDS OF NATIONAL BANKS IN THE SIX
MONTH PERIODS ENDED JUNE 30, 1948 AND JUNE 30, 1947, AND THE
YEAR ENDED DECEMBER 31, 1947 - Continued
(Amounts in thousands of dollars)
.....
— 1
«
: Year ended
6 months ended
••
•
• June 30, : June 30, : Dec, 31,
1947
:
* 1947
* 1948
Recoveries, transfers frcm reserve accountst
and profits:
On securities:
111,541
Recoveries
3,105
Transfers from reserve accounts l/*........
Profits on securities sold or redeemed...,. 22,041
Ch loans:
16,5S6
Recoveries
3,190
Transfers from reserve accounts 1/,........
25.-627
All other.
TOTAL RECOVERIES J TRANSFERS FROM RESERVE
81.390
ACCOUNTS AND PROFITS........ .......
Losses, charge-offs, and transfers to reserve
accounts:
On securities:
Losses and charge-offs..................... 25,845
Transfers to reserve accounts 2/.,.,.,..... 13,665
On loans:
15,820
Losses and charge-offs.,..... .
Transfers to reserve accounts 2/......,,,., 85,644
11.104
..... .
All ouherc,
TOTAL LOSSES 3 CHARGE-OFFS AND TRANSFERS
TO RESERVE ACCOUNTS.... ............... 152,078
PROFITS BEFORE INCOME TAXES,.... ................., 285.119
Taxes on net income:
F
e
d
e
r
a
l
......••«*•«•
State.................
TOTAL TAXES ON NET B t C O ® ......... .
NET PROFITS BEFORE DIVIDENDS....... ...............
$13,00 1
—
35,907
$25,571
—
14,543
43,629
—
29.991
—
11,779. :
6 1,4 21
75.235
160.612
26,146
—
69,785
—
15,797
-11.493
73,542
—
25.639
53,436
168,966
635.740
340.981
83,179
93,772
88.253
5.511
99.283
241,698
172,614
10.143
182.757
452,983
5.074
196,866
Dividends declared:
592
On preferred s t o c k , . , , . . . •••.••••
Cn common stock:
91,801
Cash dividends
14.416
Stock dividends •
106,809
TOTAL DIVIDENDS DECLARED..............
734
1,372
85,906
18.321
105,461
182,147
23r450
206,969
5,004
5,018
5 ,0 11
Number of banks 3
/
*
«
.
•
•• •
Percent
Percent
Percent
Annual rate of net profits:
8,36
7,10
9,11
To capital funds
.... ....
Annual rate of cash dividends:
3.26
3.39
3.33
To capioaj. funds 31
¿7 Not reported separately in 1947. Included m t h recoveries.
2/ Includes reserves established by 1,877 banks under the provisions of Item 23(k)l
of the Internal Revenue Code - not heretofore reported separately.
2/ At end of period.
oOo
@FedFRASER