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ST" !í íf

1

again congratulate you members

of the graduating class ana offer you
my best wishes for a happy and worthy
life.

You have a tremendous asset in

the educa* ! m you have received.

Your

opportunities are unprecedented and
your responsibiIities are great.
future rests upon you alone.
the most of it

Your

I know

- 3
is great 1a nd

r vision are

c! who are not

ly chained

*

f

b |i t iona1 BOO

ion

ri who hav e th
sdeci

s ÿ

fÿflfj

courage a
Pflcuit.

Resoluteness

¿a will) ngne s s to face
f ti
fn*Ü
chs racter •
to unoopu 1a r Îssues; the cc>ur ?iff(>|
in the face of op D O S Ît ion, to do the
ings which you consi der ri
these are the sort of cue Iities
identify a man

oners at

e> thA

same old spirit of
♦

C* 1

Qu

m

determÎnat ion,
each our

ic P

have the

n frontiers

ich saw bo

f8 Î
h is

It times wh

in a

unce

e ir

fO 1 lOW

emporaneous

m

Yesterday’s solutions will not
fi
tomorrow.

0f

n

ay or

As has always been true

pk§

economic cfffift«#

anticipate.

wh

niece in
!$

1

jr
y

/

fear change. because
¡cations ma«e them feel

i i s unKnown

insecure.
conouereq

Sim

gr f ears w©r e Known and
d

foneers.

S<50K ing

a better future for
their families, they ma
frontiers to carve this
ierness.
a

it

phys¡cel
B8

Similar apprehensions did
jn i us whic

s f ormed

this country from a oredominateIy rure

adventure and for individual
achievement are greater than ever,
before.

While geographical frontiers

have vanished in large part, we have
new and more challenging frontiers in
science, agriculture, sociology,
education,

industry, business,

government, the arts, the professions,
ana other phases of human endeavor and
relationships.

Our civilization is

dynamic -- it was never less static
than now -- and great social and

to the discovery of knowledge can
be suggested.

Many new discoveries,

techniques, and processes which exist
today have not yet been adapted fuIly
to the needs and the material comfort
of society.

We know, however, that

our advances in knowledge and wisdom
have and will continue to increase
¡pi
immeasurably our prosperity and
standard of living.
The United States has not reached
its maturity.

Opportunities for

of the tremendous effect of such
\

-

/

-

inventions and discoveries upon the
economic and social structure of
c iv i I izat ion.
The Knowledge we acquired
during the crisis of war me k p s

us

realize that ahead of us M e vast
uncharted fields for learning.
Scientists can marK out great'

;.

areas unKnown to the Knowledge or
understanding of man.

No Known limits

27
that period when human improvement
must end."
Since that time more than two million
patents have been granted.

Since then

we have invented the telephone, motion
pictures, electric lights, automobiles,
farm tractors, airplanes, radio,
plastics, and television.

We have

achieved the harnessing of atomic
energy,

We have developed

hundreds of other "miracles" which
even the most visionary once scoffed
at as being impossible.

Think

prophesy for you the nature or the
shape of things to come.

No one can

tell with any certainty what tomorrow
holds.

History, for hundreds of

years, has mocked those who thought
they could divine its course.
In his report to the Congress in
1844, the Commissioner of Patents
stated;
"The advancements of the arts,
from year to year, taxes our credulity
and seems to presage the arrival of

r\ £Z

r D <*»
¡ting a treat

if you are

number of difficulties,

it should
%
%

be remembered a fso

*

le Ia r e e s s of a

r ec eiv i

are being given

greet nation

w

p t w a,s

a priceless heritag

H o o d and sacrifices

the

pc
living in a per iod

A

which has wit/,ftCCfS
O
O
3

and e

omic chs

great sc ienti f ic

es.

It would

va in for anyone to attempt

24
should be no cause for apprehension
or despair that we are troubled by
many new and many Iong-unsoIved social,
economic, political, and scientific
problems.

Challenge and opportunity

go hand in hand.

If there are

difficult questions to answer, there
are great achievements to be wrought.
This great country, and this venerable
college as well, were built upon the
determi nati on to face and conquer
difficulties and hardships.

so 1 ut ion depends gr e a t 1y uoon the
a w a r e n e s s

of the

probably every

n oeoD 1e
mer ic a i

A

D i C K

inson

graduating c lass hi a s

1

o o :k ed

c ome
d f d r o b I ems

jNPt

foreboding to a future f
which test the

be?

;t if) tn A

and spirit of man.
thet

we

!

are livingi

t i
is true today
t

| n

&

n

uneasy end
f t is c e r t a i n

I fi
1u .

far from perfect

*I U i

that

snge to the minds

1

if

e ’ s

cha

and abilities

in

11<

your

o f

not going to be

1

a

soft

g€

1

22
This has been done at some sacrifice.
-

but with the full realization that
the needs of human ity are intimately
connected with our hopes for peace
and that our security, and prosperity
are bound together with those of other
democratic, freedom-Ioving nations.
\

There have been serious problems and
many differences of opinion as to the
means of solving them.

Such problems,

and others arising in their wake, will
continue to chalIenge a I I of us.

Their

The United States emerged from
the war as the country to which much
of the rest of the world looks for
hope, for leadership, and for
direction.

Many of the other great

nations were enveloped in the
wreckage, confusion, and misery
compounded of war.

fte have taken

great steps in assisting them to
recover economically ana spiritually.

,1

— ¿0 *•

Modern industrialism and
techno logy have made us interdependent
nationally and internationally.

We

know that we cannot isolate ourselves
from the rest of the world.
realize that disturbances abroad
can have a marked effect on our
,y;vf]ti0

economic and political
home.

life here at

eny other country in the world.

Peace,

for which »e are striving: so
diligently, will enable us to maKe
secure and advance the economic and
social progress we have made.

this country who do not know the name
of their Représentâtive in Congress,
or the names of their United States
Senators.

This is one example of a

degree of failure to participate in
our Federal Government.

If democracy

should ever fail, and it certainly
must not,

it will fail through the

apathy of the citizen and his
indifference to the affairs of his
government*
You who were veterans and served

- 17 -

every citizen.

Otherwise, the

governed in a democracy must bear
much of the blame for its shortcom ings
and fa ilures..

Good government is a

matter of personal interest, of
Iff:

individual concern.

:|f|| m ■V

It deserves the

active attention of all of us.

For,

as James Bryce once said, "Mo
government demands so much from the
citizen as democracy, end none gives
so much baCK".
There are a great many people in

to our country and to our fe IIo'Orrien
e cum a

Soon your generation must

privileges and responsibilities of
t wh ic

government at all levels, a

D ick inson graduates have not. and
ill not shIrK.
q

Bf

policies of government can

Cba fw

pPOP IA .

m

W Vvf

the conduct of goverr if4IDJ*

3nsive to i

^

T,e

W

f

W *

if it is
Q1/0

pUPOOSSS

13»

rn rte a

vigorous guidance and eMfion

OJr
V

these problems and to assist others
in gaining an under standing.

For it is

only through an informed and active
citizenry that societies and
governments can progress.

You who have

the advantages of education and the
—1
interest in continued study and inquiry
—ft

must accept your full share of
respons ib i Ii ty in shaping the affairs o
your community and your nation.

The

more education we receive, the greater
are the obligations we have for service

¿hen things come too ftps!ly, much of th
joy of living is lost.

And some person^

who mexe fast starts in fife become
too self-assured.

Lixe the hare who

raced the tortoise, they sometimes
allow themselves to fall behind and
out of the race.
You can be counted fortunate
indeed if your preparation here has
instilled in you an awareness of the
vast unsolved problems of this nation
and of the world.

I hope it has

trrsp sr eft in you a desire to understand

all of these qualities.
tieshould realize and remember

that achievement of the things we want
from life seldom comes quickly or
easily.

Most of us have to start and

climb slowly.

We have to make plans

for the future and struggle for their
realization.

But this is an essential

part of happiness -- the zest of
striving, the stimulation of
accomplishment ana progression, the
and sat isfact ion of achievement.

self-satisfaction.

On the contrary,

the years you have spent here should
awake in you a deep sense of humility.
For college isn*t by itself the
«open sesame" which unlocks the
entrance to a productive life.
Many men without formal education
pull themselves up by their own
bootstraps to the top of the ladder.
They cio this through inte I Iigence.
faith, courage, character, and
perseverance.

You, too, will need

enhances your chances for an
interesting career, for financial
I-be ing, for inte I Ii
in pub Ii c

partieipation and
ana

#

*

civic

airs, and for

and happy life.

i ng a

e e , however, must not induce
a

of complacency

-'N

minus and talents.

It nas provided

g process by which you can continue
to build wisdom and character and the
ability to render useful service in
a highly complex and specialized world.
Of special

importance to you, 1 think,

are the values of character, of honor
and integrity, which this college
always has sought to inculcate in its
students.

Practicing the basic

principles of right living which you
have learned will earn you the respect

9
developed.
They will be developed to
'
■f §*' • m I
'
.V
the extent that you choose, for college
nas taught you to teach yourselves.
It has taught you to learn and grow
in the school of life where classrooms,
instructors, and libraries are varied

and many, and not always so
considerate of your feelings.
For many of you, today marks
the end of a formal education.

This

education has given you the best of
our culture.

it has trained your

1836.

Chief Justice-Tanpy remained

in this greet office ur*ti I his death
Q

of

air*»

%&■

years

H*3

controversia I decisions of the Court

areas and resources in each of you

7
litica! history of the United States
It resulted in refusal by the Senate
to confirm his nomination as Secretary
of the Treasury

resident JacKson

thereafter nominated him for the
iate Justice of th
Supreme Court, but aga in host i Ii
in t he Senate b Io c k ed his conf irmat ion.
M
I-1»o m inated to high office g third time
r r 0 S Îu

CKSon,/this time as

f
w* ief Justice of the Supreme C
Tanev was confirmed by the Senate in

responsi

After his

lent as Secretary

the Treasury
from

removal of

depos

H is
the most bitter'

in the

Thomas, held the office of Secretary
of the Treasury.

And another former

Secretary of the Treasury, Richard
Hush, served as a trustee of this
college while occupy ing his office
in the Treasury.
To me, Taney's career has been
of particular interest.

After he

graduated in 1795, he turned to
banKing and became concerned
about the establishment of a
sound currency.

He was largely

filled by DiCKinson men.

And, it is

a Iong and insp¡ring Iis t of your
graduates who have served in t he
Senate and House of Reoresentatives
of the United States, who have served

as State Governors and in Federa I
and State judiciaries, and who
have otherwise given themselves to

the public serv ice.
Two DiCKinson Co
er BrooKe

student s ,

snc is

the Revolution«, orincipal draftsman
of the Articles of Confederation, and
member of the Constitutional
Convention.

Thousands of splendid

citizens and many distinguished leaders
of our Republic have been educated
•fit*‘"W
\.
'i
.
|4 ,
‘ >*v V
here.
Dic k inson provided the college
.

education of a President of the
United States, -- James Buchanan of
PennsyIvenia.

Ten cabinet offices

in the Federal Government have been

2
studied here.

1 sincerely congratulate

you for the attainments this day
signifies.
You men and women graduati

today are
which has

a Dart of that force
and will continue to

3Ke those significant contr ibut ions
to the culture and the nrogress
our nation

Di ck inson Co I Iege

s made for the past ITS years.
V
Your college bears the illustrious

name of John OiCKinson,

ft

Penman of

President Edel, members of the
graduating class, members of the
faculty, distinguished guests:
very proud of the privilege of

I
I am

I

/

delivering the Commencement address

1
[1

at this famous and historic college.

I

And you do me high honor by bestow ing
upon me the degree of Doctor of 1 »»¡pIt is an honor I shall always treasure,
as I am sure this graduating class of
194 S will always regard as a special
distinction the privilege of having

1

ssm&tU'SEStt

p (j

Affi.sESS a

seostak ssides

f-1KattssoB tmmm
carnale, ¡wa^lvará»

TREASURY DEPARTMENT
Washington
The following address by Secretary Snyder at the
176th Coniinencement of Dickinson College, Carlisle,
Pennsylvania, is scheduled for delivery at 3s00 p«nu.,
EDT Sunday, ‘ftune S, 1949, and is for release at
that time.

S-200.8

TREASURY DEPARTMENT
Washington

The following address by Secretary Snyder at the
176th Commencement of Dickinson College, Carlisle,
Pennsylvania, is scheduled for delivery at 3?00 p.m..
E.D.T.. Sunday. June 5« 1949. and is for release at
that time.

President Edel, members of the graduating class, members of the
faculty, distinguished guests? I am very proud of the privilege of
delivering the Commencement address at this famous and historic college.
And you do me high honor by bestowing upon me the degree of Doctor of
Laws, It is an honor I shall always treasure, as I am sure this gradua­
ting class of 194-9 will always regard as a special distinction the privi­
lege of having studied here; I sincerely congratulate you for the attain­
ments this day signifies;
You men and women graduating today are now a part of that force which
has made and will continue to make those significant contributions to the
culture and the progress of our nation which Dickinson College has made for
the past 176 years.
Your college bears the illustrious name of John Dickinson, the “Penman
of the Revolution“, principal draftsman of the Articles of Confederation,
and member of the Constitutional Convention, Thousands of splendid citizens
and many distinguished leaders of our Republic have been educated here,
Dickinson provided the college education of a President of the United
States, — James Buchanan of Pennsylvania, Ten cabinet offices in the
Federal Government have been filled by Dickinson men. And, it is a long
and inspiring list of your graduates who have served in the Senate and
House of Representatives of the United States, who have served as State
Governors and in Federal and State judiciaries, and who have otherwise
given themselves to the public service.
Two Dickinson College students, Roger Brooke Taney and Philip Francis
Thomas, held the office of Secretary of the Treasury. And another former
Secretary of the Treasury, Richard Rush, served as a trustee of this
college -while occupying his office in the Treasury.
To me, Taney’s career has been of particular interest, After he
graduated in 1795, he turned to. banking and became concerned about the
establishment of a sound currency. He was largely responsible for the
ultimate dissolution of the Bank of the United States, in which he saw a
menace to the best interests of his country. After his appointment as
Secretary of the Treasury in 1833, he ordered the removal of Government
deposits from the Bank of the United States and set up a system of Government
depositaries, His fight against the bank was one of the most bitter
struggles in the political history of the United States, It resulted in
refusal by the Senate to confirm his nomination as Secretary of the Treasury,
President Jackson thereafter nominated him for the office of Associate
Justice of the Supreme Court, but again hostility in the Senate blocked his
confirmation, Nominated to high office a third time by President Jackson,
S-2008

-

2

-

this time as Chief Justice of the Supreme Court, Taney was confirmed by
the Senate in 1836® Chief Justice Taney remained in this great office
until his death in 1864, a total of 28 years. He wrote the opinions in
the Dred Scott Case and other highly important and controversial decisions
of the Court o
James Buchanan, Roger Taney, and Philip Thomas, all sought further ■
self-education after leaving Dickinson, As with them, there are great
areas and resources in each of you which have not yet been tapped or
developed,. They will be developed to the extent that you choose, for
college has taught you to teach yourselves® It has taught you to learn
and grow in the school of life where classrooms, instructors, and libraries
are varied and many, and not alv/ays so considerate of your feelings0
For many of you, today marks the end of a formal education® This
education has given you the best of our culture® It has trained your minds
and talents® It has. provided a process by which you can continue to build
wisdom and character and the ability to render useful service in a highly
complex and specialized world® Of special importance to you, I think, are
the values of character, of honor and integrity, which this college always
has sought to inculcate in its students® Practicing the basic principles
of right living which you have learned will e a m you the respect and confi­
dence of your fellow men® This is perhaps the greatest reward any of us can
win from life0
Completion of college training enhances your chances for an interesting
career, for financial well-being, for intelligent participation and leader­
ship in public and civic affairs, and for a balanced and happy life®
Earning a college degree, however, must not induce a feeling of complacency
or self-satisfaction® On the contrary, the years you have spent here should
awake in you a deep sense of humility® For, college isn't by itself the
"open sesame" which unlocks the entrance to a productive life®
Many men without formal education pull themselves up by their own boot­
straps to the top of the ladder® They do this through intelligence, faith,
courage, character, and perseverance® You, too, will need all of these
qualities®
We should realise and remember that achievement of the things we want
from life seldom comes quickly or easily® Most of us have to start and
climb slowly® We have to make plans for the future and struggle for their
realization® But this is an essential part of happiness — the zest of
striving, the stimulation of accomplishment and progression, the pride and
satisfaction of achievement® When things come too easily, much of the joy
of living is lost® And some persons who make fast starts in life become
too self-assuredo Like the hare who raced the tortoise, they sometimes
allow themselves to fall behind and cut of the race®
You can be counted fortunate indeed if your preparation here has in­
stilled in you an awareness of the vast unsolved problems of this nation and
of the world® I hope it has inspired in you a desire to understand these
problems and to assist others in gaining an understanding® For it is only
through an informed and active citizenry that societies and governments can
progress® You who have the advantages of education and the interest in

-3 continued study and inquiry must accept your full share of responsibility
in shaping the affairs of your community and your nation. The more
education we receive, the greater are the obligations we have for service
to our country and to our fellowmen. Soon your generation must assume the
privileges and responsibilities of government at all levels, a trust which
Dickinson graduates have not, and will not shirk.
The policies of government can never satisfy all of the people. But
the conduct of government, if it is responsive to its purposes, should have
not only the intelligent consent but the vigorous guidance and support of
every citizen. Otherwise, the governed in a democracy must bear much of
the blame for its shortcomings and failures. Good government is a matter
of personal interest, of individual concern. It deserves the active atten­
tion of all of us. For, as James Bryce once said, “No government demands
so much from the citizen as democracy, and none gives so much back” .
There are a great many people in this country who do not know the
name of their Representative in Congress, or the names of their United •
States Senators. This is one example of a degree of failure to participate
in our Federal Government, If democracy should ever fail, and it certainly
must not, it will fail through the apathy of the citizen and his indiffer­
ence to the affairs of his government.
You who were veterans and served overseas during the war — you who
have had the opportunity to travel in foreign countries, realize and are
humbly grateful, I am sure, for the fact that we in this country have a
higher standard of living and far more advantages than the citizens of any
other country in the world. Peace, for which we are striving so diligently,
will enable us to make secure and advance tho economic and social progress
we have made.
Modern industrialism and technology have made us interdenendent
nationally and internationally. Fe know that we cannot isolate ourselves
from the rest of the world. Fe realize that disturbances abroad can have
a marked effect on our economic and political life here at home.
The United States emerged from the war as the country to which much
of the rest of the world looks for hope, for leadership, and for direction.
Many of the other great nations were enveloped in the wreckage, confusion,
and misery compounded of war, Fe have taken great steps in assisting them
•
.
to recover economically and spiritually. This has been done at some
sacrifice, but with the full realization that the needs of humanity are
intimately connected with our hopes for peace, and that our security, and
prosperity are bound together with those of other democratic, freedomloving nations, There have been serious problems and many differences of
opinion as to the means of solving them. Such problems, and others arising
in their w/ake, will continue to challenge all of us. Their solution depends
greatly upon the awareness of the American people. Probably every Dickinson
graduating class has looked with some foreboding to a future full of prob­
lems which test the best in the mind and spirit of man. It is true today
that we are living in an uneasy and far from perfect world. It is certain
that life’s challenge to the minds and abilities of your generation is not
going^ to be a soft one. But it should be no cause for apprehension or
despair that vie are troubled by many new and many Iongr-unsolved social,

- ueconomic, political, and scientific problems. Challenge and opportunitygo hand in hand. If there are difficult questions to answer, there are
great achievements to be wrought. This great country, and this venerable
college as well, were built upon the determination to face and conquer
difficulties and hardships.
If you are inheriting a great number of difficulties, it should be
remembered also that you are receiving the largess of a great nation. You
are being given a priceless heritage that was won by the blood and sacri­
fices of your ancestors,
Te are now living in a period -which has witnessed great scientific
and economic changes. It would be vain for anyone to attempt to prophesy
for you the nature or the shape of things to come, No one can tell with
any certainty what tomorrow holds. History, for hundreds of years, has
mocked those who thought they could divine its course,

In his report to the Congress in 1844.» the Commissioner of Patents
stated?
«The advancements of the arts, from year to year, taxes
our credulity and seems to presage the arrival of that period
when human improvement must end.”
Since that time more than two million patents have been granted. Since
then we have invented the telephone, motion pictures, electric lights,
automobiles, farm tractors, airplanes, radio, plastics, and television.
We have achieved the harnessing of atomic energy. We have developed
hundreds of other «miracles« -which even the most visionary once scoffed
at as being impossible. Think of the tremendous effect of such inventions
and discoveries upon the economic and social structure of civilization.
The knowledge we acquired during the crisis of war makes us realize
that' ahead of us lie vast uncharted fields for learning. Scientists can
mark out great areas unknown to the knowledge or understanding of man.
No known limits to the discovery of knowledge can be suggested. Many
new discoveries, techniques, and processes which exist today have not
yet been adapted fully to the needs and the material comfort of society.
We know, however, that our advances in knowledge and wisdom have and will
continue to increase immeasurably our prosperity and standard of living.
The United States has not reached its maturity. Opportunities for
adventure and for individual achievement are greater than ever before.
While geographical frontiers have vanished in large part, we have new
and more challenging frontiers in science, agriculture, sociology, educa­
tion, industry, business, government, the arts, the professions, and other
phases of human endeavor and relationships. Our civilization is
dynamic — it was never less static than now — and great social and
economic changes will take place in which you will participate.
Some people fear change, because its unknown implications make them
feel insecure. Similar fears were known and conquered by the pioneers.
Seeking a better future for themselves and their families, they mastered

- 5 -

physical frontiers to carve this nation from a wilderness. Similar appre­
hensions did not halt the genius which transformed this country from a
predominately rural to a complex industrial society. The same old spirit
of faith, determination, and sacrifice is needed to breach our modern
frontiers. We must have the same faith, indeed, which saw both our
country and this college through the uncertain and difficult times which
followed upon their contemporaneous foundation,
Yesterday's solutions will not fit many of the problems of today or
tomorrow. As has always been true in this great land, men of vision are
needed who are not mentally chained to traditional approaches, Men are
needed who have the imagination ahd courage and skill to meet and deal
with the novel and difficult. Resoluteness of character; the willingness
to *ace up to unpopular issues; the courage, in the face of opposition,
to do the hard things which you consider right — these are the sort of
qualities which identify a man who towers above the throng.
I
again congratulate you members of the graduating class and offer
you my best wishes for a happy and worthy life. You have a tremendous
se in the education you have received. Your opportunities are unpre­
cedented and your responsibilities ape great. Your future rests upon you
alone. I know you will make the most of it
.

- o 0 o -

-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.

Under Sections U2

and 117 (a) (1) of the Internal Revenue Code* as amended by Section lip of the
Revenue Act of 19ul> the amount of discount at Tfhich 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. UlS* 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 b y
the Secretary of the Treasury of the amount and price range of accepted bids.
Those suomitting tenders will be advised of the acceptance or rejection thereof.
The Secretary of the Treasury expressly reserves the right to accept or reject
any or all tenders, in whole or in part, and his action in any such respect shall
be final.

Subject to these reservations,, non-competitive tenders for $200,000 or

less without stated price from any one bidder will be accepted in full at the
average price (in three decimals) of accepted competitive bids.

Settlement for

accepted tenders in accordance with the bids must be made or completed at the
Federal Reserve Bank on

June

, in cash or other immediately avail-

able funds or in a like face amount of Treasury bills maturing

_
Cash

and exchange

V.j-j
tenders will

receive equal treatment*

Jung 9 , 1 9 ^ 9 _____ ;

i&jbc

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 bifls, shall not have anysexemption, as such, and loss
from the sale or other disposition of Treasury bills shall not have any special
treatment, as such, under tne 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

Sxkitexfcxjfc

mx
^gtiaroiT

dbtatltment

-glfT RELEASE, MORNING NEWSPAPERS
Friday, June 3, 19U9.

]pc£

The Secretary of the Treasury, by this public notice, invites tenders for

$ 900,000,000
¥5

or thereabouts, of

91

-day Treasury bills, for cash and

a&l '
June 9* 191*9
—
W ”

In exchange for Treasury bills maturing

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

June 9, 191+9

and

September 8» 19U9 > when, the face amount will be payable
j
without

T0c

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 1clock p*m., E a s t e r n t i m e ,
Monday, June
19U9

6,

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
y/hich will be supplied by Federal Reserve Banks or Branches on application
theref or.
Tenders will be received vri_thout 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, MCRNING NEWSPAPERS,
Friday, June 3» 1949»

WASHINGTON, D .C .
S-2009

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 June 9, 1949, 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 June 9, 1949, and
will mature September 8, 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 o*clock {Mi., Eastern Daylight Saving time, Monday,
June 6, 1949. 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 thaft 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 June 9, 1949, in cash or other immediately avail­
able funds or in a like face amount of Treasury bills maturing June 9, 1949.
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 eale or other disposition of iVeasury 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 pr 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 b y any local taxing authority, : For purposes of
taxation the amount of discount at which Treasury bills are originally sold
by the United States shall foe considered to be interest* Under Sections 42
and 117 (a) (l) of the Internal Revenue Code, as amended by Section 115.■
of the Revenue Act of 1941, the, amount of discount at which bills issued
hereunder are sold shall not be considered to accrue until such.bills shall
be sold, redeemed or otherwise disposed of, and such bills are excluded
from consideration as capital assets* Accordingly, the owner of Treasury
bills (other than life insurance, companies) Issued hereunder need include
in..his income tax return only the difference between the price paid, for such bills, whether on original issiie 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'"'*'"' t
Treasury Department Circular N.o* 418, as amended, and this notice,
prescribe the terms of *the Treasury bills and govern the conditions of their
issue* Copies of the circular may be obtained from any Federal Reserve
Bank or Branch,

~o0o~

-41

-

financial and economic position is
basically sound.

Wi tn the application

of reasonable intelligence and
foresight,

i bel ieve that we have

every reason to face the future with
confidence ana enthusiasm.

least of these factors is
American intelligence, ana the
determination to develop opportunit¡es
for increased production and
distribution o f g o o o s ana services.
The economic development of the United
States and of every nation has-been
built upon the vision ana confidence
of its peop le .

^||

Qur opportun¡ties for national
economic progress and for sustained
high prosperity are tremenaous.

Our

in response to the challenge of
compet ition.
I have taken a good deal of time
in discussing the business picture,
because i believe that the spotlight
has too often been played on the
read jus linen ts going on this year, and
i

too seldom on the reassuring features
of the current business out look.
My confidence in our future comes
from a close analysis of economic
factors which warrant this cone Ius ion.

- 38 last year’s models were constantly
coming onto the market.

The result

was that the American consumer occupied
the driver’s seat.

It is not

surprising that, today, he is enjoying
the feeling of the resumption of his
former position.
Certainly, this ceturn to normal
conditions should not dismay our
alert businessmen.

Better than anyone

else in the world, we know how to get
out and sell.

Private enterprise in

this country has always operated best

- 37 that whenever there is reluctance on
the part of buyers as at the present,
it is not primari iy the result of a

I hck of money to pu rc ha se .
The
|
; ¡pi p i ] I
hesitancy this year reflects rather, a
new determination on the part of a I I
of us to get our money's worth.

Business e n t e r p r i s e in t h i s
c o u n t r y , pr ior to the war, always
operated in an economy of abundance.
Techniques were c o n s t a n t l y being
improved, and new products b e t t e r than

individuals is not a complete picture
of their asset position.

In addition,

individuals have very substantial
savings in the form of insurance,
equities in unincoroorated business,
securities of private corporat ions,
obligations of State and local
governments, and so on.
The figures on liquid assets
alone, however, represent a tremendous
bee« Iog of funds available for future
spending.

They drive home the fact

V*«tf

four times the entire national
in the mid-1930*s.

income

About 67 billion

dollars of this amount is in savings
accounts.

Something line 43 billion

dollars is in cheCK ing accounts.
Individual holdings of Federal
securities amount to a little lover
68 billion dollars, and 22 billion

dolls rs is in currency.
We have to remember, moreover,
that the 200 bi Ilion dollar tota 1
figur e for the 1 iq u id saving

I have singled out the farmers,
merely for Durooses of iI Iustration.
The same is true «it, resoect to th.

■

liquid asset position of individuals
as a group.

It is eaually strong

concerning business coroorations and
financial institut ions.

I

The total I¡Quid savings of all
individuals, including farmers, are
over 200 b îIIion
dollars -- an amount

is more

demand d e p o s i t s ,

t h e i r s a v i ng s accounts

and t h e i r Federal Government s e c u r i t i e s
This is a tremendous f i g u r e .

I t is

nearl y e i g h t or nine times the e n t i r e
agricultural

income of t h e Nation

15 or 16 years ago.

Another b r i g h t

po i nt is the r e l a t i v e l y small volume
of farm mortgage debt.
5 b illio n dollars

The t o t a l of

is a c t u a l l y

lower

than i t was at the beginning o f the
war.

The e n t i r e farm s i t u a t i o n is in

s i r tKing c o n t r a s t to the exoer ienee

m

i

the aid and assistance of you people
in the banning field.

Agriculture
WÊÊ

is one example that readily comes to
mind.

Banners in many communities in

this region have particularly close
ties with agriculture; and 1 Know that
you are gratified, as I am, with the
sound financial condition in the
agricultural portion of our economy
as a whole.

Farmers of this country

have 20 billion dollars of liouid
assets; that is, their cash, their

about it} and the whole country, -today,
is reaping the benefit.

1 Know that

record of good banning performance,
now that conditions have changed and
the situation in the business and
financial world is returning to
something more line norma I,
American business

in many sectors

of the economy has exercised good
iudsment since the end of the war;

mem

American banners will continue their

over-extension of inflationary credit
which character ized some earli er
es and large profit
I am very much impressed -- and
I am sure that thoughtful people
throughout the country were iixewise
impressed -- with the resuIts of the
voluntary credit control program of the]
American Banners Association last year.
When it looned as if the loan situation
might get out of hand, you people had
the energy and bacnbone to do someth i ng1

example.

As you will recall, there

I

have been times in the oast, following
periods of active business, when frozen
assets were a serious orobl
these oroblems are absent.

There are

virtually no excessive speculative
positions to liquidate.

On the contrary

holdings of cash and short-term Federa
securities are at impressive Ieve
In your own field of commercial

banx ing, as you are well aware, caution
and good judgment have prevented the

turned out in three record-breaxing
years of peacetime ictivity failed to
result either in over-extended credit

j

or in a dissipation of assets.
Througnout the reconversion period,
bus inessmen -- and l include banxers -have been on the looxout for unhealthy
signs.

Their very caution has tended

to xeep the situation under control.
The current position of our great
financial institutions is an excellent

to Keep mgKing
became the headline news of the year.
The remarKabIe performance of American
business in operating at close to pea«
levels, after three years of
*

unprecedented output, was brushed as id'

This performance, however,
real news of the year.

is the

And i t has been

accomplished without any impairment of
our f i n a n c i a l

strength.

it is remarKpbIe

baCK on it

that the pressure

214 billion dollars a year -- 4 percent!

Higher than a year ago, and within

3 percent of the all-time peak of
last December.
11 is an American custom, of
course, to try to outdo the other
fellow.

That is why record-break

figures are always news.

But,

in the

period since the war, we actually
became so used to new business
recoros -- month after montn, and
year after year -- that our failure

• 25 -

v ■.

v> ■•

Ana, finally, we have the buying
.

power.

That is a crucial factor, and

I should like to discuss it a little
further at this point*
Take employment and incomes, to
begin with.

In April, the number of

people working was within one percent
of tne number employed in the
record-breaking spring of !348.

And

currently people in this country are
earning money at the rate of about

I 24 industry is continuing to invest in thè
future of this country in amounts
which are still far beyond anything
experienced in the years before the war
In short, the basic factors in
our national picture today boil down
to just this:
We have the opportunit ies -- in
our expanding needs,

in our resources,

and in our people.
We have the techniques.
We have the equipment.

- 23 dollars in new construction and new
equipment since the war ended.

This

means that business is now in an
excellent position to put the new
techniques and new processes to good
use.

Wi th aggressive leadership, new

and improved products will help retain
old markets, and wi I I uncover new ones.
As was to be expected, the rate
of investment has slackened a little
this year.

But published reports on

plans for further capital expenditure,
this year and next, show that American

**

2 ¿t

“

tnese new developments will take in
the years ahead.

But we can be sure

that new inaustries will appear which
will be as important to our future
economic development as the great
industrial enterprises which have
grown up curing the past 50 years.

Moreover, we have, right now,
the plant ana equipment for moving
ahead.

American business has

invested the enormous sum of 75 billion

21
of heating ano temperature-controi
oevices, of home equipment in generai to name only a few -- appear to be at
the threshoI a of developments which may
result in replacing many common
products now in daily use.

:

Experiments

with the new light metal, titanium, 1or
example,

indicate that a structural

material equal in importance with
aluminum or stain Iess steel may be
about to come onto the market.
$e do not know exactly what forms

-

20

-

challenge of a lagging market to bring
mass production of a new product.

In

194b, around 6,400 television sets
were produced.

By 1948, the yearly

output was 975 thousand.

This year,

production estimates run to something
like 2 million.
■

Yet, the television

industry -- it is evident -- is only
in its infancy.
I could cite many other examples.
The fields of metal alloys, of
plastics and other synthetic materials

just as novel a piece of 1ofor mat. ion.
Television is, of course, an
example famiIiar to alI of us.

Tne

radio industry was among the first to
run into a buyers' market.

It/

responded with the introduction of
television.

Research had been going

on for some years, but when people
were grabbing old model radios off the
production

lines as fast as they

could be turned out, there was no
incentive to change.

It took the

outlet for the rubber manufacturing
industry.
The field of electronics -- to
taxe another example ** offers
exciting possibilities.

Today, the

instantaneous preparation of a meal
by means of electronic devices is odd
enough to be featured by the news
services.

Yet, only a little more

than 50 years ago, the news that a
stove in a mi II ionaire's home cooxed
entirely by means of electricity was

ir
are being used in ail makes of
passenger automobi ies, even in the
lower-priced models -- a striking
illustration of the extensive market
openeu up by just one new product.

1

Many other uses for rubber are
in the experimental stage.

One

current field of invest igati on -- the

|

introduction of rubber powder
admixed with asphalt to improve road
surfacing material -- may hold
particular promise as an important new j

to lean very heavi ly on tires and
other transportation equipment.

Now,

I

an enterprising and resourceful
leadership has opened up new outlets -•
and d iscovereo new profits
diversification.

in

An example of recent

exper imentat ion and market research
which is paying big dividends in the
industry is foam rubber.

This product

is already in demand for cushions,
mattresses, upholstery, and so on.
This year,

in fact, foam latex cushion

in the agricultural area -- are
already widely accepted as necessities.
Yet, they were unknown outside of
laboratories a few years ago.

in the

field of antibiotics, aureomycin,
chioramthen icoI, and bacitracin are
t; ■ V

just three of the new discoveries
which promise a rapid broadening of
demand in this field.
The rubber industry, too, is
experiencing dynamic changes.

This

industry for volume production used

14

/
/
i
I

advanced atomic physicists are able
to foresee the transformations which
atomic energy -- to take only one
example -- may make in the whole
industrial

life of the Nation,

Our great chemical and rubber
industries,

likewise, hold dramatic

possibilities for the development of
new markets and new products»
Many new products -- such as
penicillin ana streptomycin in the
medical field, and the new insecticides

- 13 a vast array of new techniques and
new processes which undoubtedly hold
the promise of future industrial
revolutions as great as those brought
about **- for example -- by the
airplane and the automobile.

Under

the stimulus of wartime necessity,
our scientists pushed far ahead of
the ability of peacetime industry to
explore the possibilities of the new
findings.

I am willing to hazard

the guess that not even our most

| 12 I
terms of quantity -- meat, eggs,
fruit, ana so on -- is 10 percent
higher per person now than the average
in the years 1935 to 1939,
All of these facts point to a
continuing ground swell of demand for
the basic essentials of living, which
will contribute to active business in
the near future.
But there are even stronger
elements in our present business
situation.

¡r1 ,
,

We have in our hands today

*«

S y J i •■. •

different areas of the country.

Our

newly expanded communities need new
schools, hospitals, roads, shopping
centers, municipal service plants.
More than that,-many existing
facilities -- largely neglected during
the war -- have yet to be repaired,
modernized, or replaced.
And, finally, our entire
population has come to demand a
continually improving standard of
living.

Food consumption, alone -- in

To begin with, we have almost
17 million more people in our
population today than we had before
the war.

This is an increase as great

as if six cities the size of New York,
Chicago, Philadelphia, Detroit.
Los Angeles, and Cleveland -- our six
largest in 1940 -- had been added to
the population in the short space of
ten years.
Moreover, there have been vast
shifts in the population as between

the prospects for further progress and
further achievement in this country?
Second, «hat is the significance of
the current adjustments now going on
in business conditions throughout
the country?
Let us consider the first
question -- our prospects for the
future.

I believe that we have largely

lost sight of our future prospects
in current discussions of the
short-term business situation.

-

8

-

This is a strong statement.

It

is made with full realization of the
immense strides ta«en by the Western
States in every decade of the last
100 years.

But it is a statement

which I believe is borne out by the
plain facts of our present situation.
Let us Io o k at that situation.
As soon as we try to line ud the
major factors in the current state of
affairs, two fundamenta I questions
immediately arise:

First, what are

7
tue en a of the se If-suf f ic ient j|
economy of your pioneers.

But

energy ana determ inat ion which
• early settlers

in grapp ling w ith

the problems of trie ir environment still
symbolize to Americans everywhere the
pioneer s

t

•

triumph over

sical and economic hardship.

operations, as compared with the
situation a half, or even a quarter
of a century ago.
Not only banking, but the entire
life of the country has seen vast
changes in the past fifty years,

ft'«

have passed from a predominantiy
rural and sma i I-town economy to a
highly complex urban and industrial
c iv i lizat ion.
In this part of the West, the
raiIroads

werethe turning point.

The

- 5 which would have astounded and
bewi Idered the founders of many of
the institutions which you in this audience represent,
I have on my desk in the Treasury,
for example, the 463-page volume of
the last issue of "Federal Laws
Affecting National Banks",

In the

comparable volume for 1900, only 63
pages were needed to cover the ground.
This is just one illustration of the
complicated nature of modern financial

- 4 these deposits.

Your investments must!

be sound, and yet -- generally
speaking they must be capable of
ready conversion into cash.
There are many financial pitfalls
in the performance of obligations of
this magnitude in the complex business
world of today.

A modern banker

must find his way past all of them.
Moreover, bankers must make their
decisions in the light of a
multiplicity of laws and regulations

- 3 Banking techniques,
were fairly simple.
the 1890's,

in those days,
As recently as

it is interesting to

recall, there were only a few small
banking offices in this area and most
money transactions were in silver
and gold.
Today, you bankers are responsible
for the guardianship of hundreds of
millions of dollars of funds entrusted
to you by your depositors.

To stay

in business, you must make money on

2
They must be specialists in the whole
broad field of business analysis.
Y

c^They must be able to interpret the
changes occurring in business
conditions, not only in their own
communities, but in the Nation.
The requirements for successful
banking have changed greatly since
bankers in this part of the West
began doing business in the early
days as a side line in connection with
the pioneer mercanti le estabIishments.

f have been most interested in
the note of confidence in the economic
and financial picture, emanating from
the various banners' conferences this
year.

! have found these reports

particularly reassuring, since you
banners have generally been the first
members of the business community to
detect approaching economic
adjustments.
Banners must be able to appraise
much more than their customers’ needs.

si becRitm m u m
n m

m \m

mmnss

navm*

is? otjä ara;-ss

The following address by Secretary Snyder befoxre
the annual convention of the Utah Bankers Association
at the Sun Valley Lodge, Sun Valley, Idaho,
is scheduled for delivery at 10:30 a.m. MST Tuesday,
June 7, "1949, and is for release at that time.
THE BUSINESS PICTURE

5- zo/o

TREASURY DEPARTMENT
Washington

The following address by Secretary Snyder
before the annual convention of the Utah
Bankers Association at the Sun Valley Lodge,
Sun Valley, Idaho, is scheduled for delivery
at 10:30 A.M., M.S.T., Tuesday. June 7. 194-9.
and is for release at that time «

«THE BUSINESS PICTURE«

I have been most interested in the note of confidence in the economic
and financial picture, emanating from the various bankers1 conferences
this year, I have found these reports particularly reassuring, since you
bankers have generally been the first members of the business community to
detect approaching economic adjustments.
Bankers must be able to appraise much more than their customers’ needs.
They must be specialists in the whole broad field of business analysis,.
They must be able to interpret the changes occurring in business conditions,
not only in their own communities, but in the Nation,
The requirements for successful banking have changed greatly since
bankers in this part of the West began doing business in the early days
as a side line in connection with the pioneer mercantile establishments..
Banking techniques, in those days, were fairly simple.. As Recently as
the 1 8 9 0 ’s, it is interesting to recall, there were only a few small
banking offices in this area and most money transactions were in silver
and gold.
Today, you bankers are responsible for the guardianship of hundreds
of millions of dollars of funds entrusted to you by your depositors, To
stay in business, you must make money on these deposits. Your investments
must be sound, and yet — generally speaking they must be capable of ready
conversion into cash.
There are many financial pitfalls in the performance of obligations
of this magnitude in the complex business world of today, A modern banker
must find his way past all of them.
Moreover, bankers must make their decisions in the light of a
multiplicity of laws and regulations which would have astounded and
bewildered the founders of many of the institutions which you in this
audience represent,
I have on my desk in the Treasury, for example, the 463~page volume
of the last issue of «Federal Laws Affecting National Banks«, In the
comparable volume for 1 9 0 0 , only 6 3 pages were needed to cover the ground.

S-2010

~

2

-

This is just one illustration of the complicated nature of modern finan­
cial operations, as compared with the situation a half, or even a quarter
of a century ago.
Not only banking, but the entire life of the country has seen vast
changes in the past fifty years. We have passed from a predominantly
rural and small-town economy to a highly complex urban and industrial
civilization.
In this part of the West, the railroads were the turning point. They
spelled the end of the self-sufficient economy of your pioneers. But the
energy and determination which the early settlers showed in grappling with
the problems of their environment Still symbolize to Americans everywhere
the pioneer spirit of tfiumph over physical and economic hardship.
Today, X btelievfe that we can look forward to an e rk of expanding
national opportunities equally as promising as those which began with the
opening of the West.
This is a strong statement. It is made with full realization of the
immense strides taken by the Western States in every decade of the last
100 years, But it is a statement which I believe is borne out by the
plain facts of our present situation. Let us look at that situation.
As soon as we try to line up the major factors in the current state
of affairs, two fundamental questions immediately arise? First, what are
the prospects for further progress and further achievement in this country?
Second, what is the significance of the current adjustments now going on
in business conditions throughout the country?
Let us consider the first question — our prospects for the fu'ture.
I believe that we have largely lost sight of our future prospects in
current discussions of the short-term business situation.
To begin with, we have almost 17 million more people in our popula­
tion today than we had before the war. This is an increase as great as
if six cities the size of New York, Chicago, Philadelphia, Detroit,
Los Angeles, and Cleveland — our six largest in 194-0 — had been added
to the population in the short space of ten years.
Moreover, there have been vast shifts in the population as between
different areas of the country. Our newly expanded communities need new
schools, hospitals, roads, shopping centers, municipal service plants.
More than that, many existing facilities — largely neglected during the
war — have yet to be repaired, modernized, or replaced.
And, finally, our entire population has come to demand a continually
improving standard of living. Food consumption, alone — in terms of
quantity — meat, eggs, fruit, and so on — is 1 0 percent higher per
person now than the average in the years 1935 to 1939*

~ 3 -

All of these facts point to a continuing ground swell of demand for
the basic essentials of living, which will contribute to active business
in the near future..
But there are even stronger elements in our present business situa­
tion, We have in our hands today a vast array of new techniques and new
processes which undoubtedly hold the promise of future industrial revolu­
tions as great as those brought about — for example — by the airplane
and the automobile. Under the stimulus of wartime necessity, our
scientists pushed far ahead of the ability of peacetime industry to explore
the possibilities of the new findings, I am willing to hazard the guess
that not even our most advanced atomic physicists are able to foresee the
transformations -which atomic energy — to take only one example — may
make in the whole industrial life of the Nation,
Our great chemical and rubber industries, likewise, hold dramatic
possibilities for the development of new markets and new products,
Many new products — such as penicillin and streptomycin in the
medical field, and the new insecticides in the agricultural area — are
already widely accepted as necessities. Yet, they were unknown outside
of laboratories a few years ago. In the field of antibiotics, aureomycin,
chloramthenicol, and bacithacin are just three of the new discoveries
which promise a rapid broadening of demand in thi$ field.
The fubber industry* too, is experiencing dynamic changes. This
industry for volume production used to lean very heavily on tires and
other transportation equipment. Now, an enterprising and resourceful
leadership has opened up new outlets — and discovered new profits — in
diversification. An example of recent experimentation and market research
which is paying big dividends in the industry is foam rubber. This product
is already in demand for cushions, mattresses, upholstery, and so on. This
year, in fact, foam latex cushions are being used in all makes of passenger
automobiles, even in the lower-priced models — a striking illustration
of the extensive market opened up by just one new product.
Many other uses for rubber are in the experimental stage. One current
field of investigation — the introduction of rubber powder admixed with
asphalt to improve road surfacing material — * may hold particular promise
as an important new outlet for the rubber manufacturing industry.
The field of electronics — to take another example — offers exciting
possibilities. Today, the instantaneous preparation of a meal by means
of electronic devices is odd enough to be featured by the news services.
Yet, only a little more than 50 years ago, the news that a stove in a
millionaire’s home cooked entirely by means o f electricity was just as
novel a piece of information.
Television is, of course, an example familiar to all of us.
radio industry was among the first to run into a buyers’ market..

The
It

responded with the introduction of television. Research had been going
on for some years, but when people were grabbing old model radios off the
production6lines as fast as they could be turned out, there was no incen­
tive to change. It took the challenge of a lagging market to bring mass
production of a new product. In 1946, around 6 400 television sets were
produced. By 194S, the yearly output was 975 thousand. This year ^ p r o ­
duction estimates run to something like 2 million. Yet, the televioion
industry — it is evident — is only in its infancy,
I could cite many other examples. The fields of metal alloys, of
plastics and other synthetic materials, of heating and temperature-contro
devices, of home equipment in general — to name only a few
appear to
be at the threshold of developments which may result in replacing many
common products now in daily use. Experiments with the new light metal,
titanium, for example, indicate that a structural material equal in
importance with aluminum or stainless steel may be about to come onto the
market,

«

We do not know exactly what forms these new developments will take
in the years ahead. But we can be sure that new industries will appear
which will be as important to our future economic development as the great
industrial enterprises which have grown up during the past 50 years.
Moreover, we have, right now, the plant and equipment for moving
ahead. American business has invested the enormous sum of 75 billion
dollars in new construction and new equipment since the war ended. This
means that business is now in an excellent position to put the n®w
techniques and new processes to good use. Tilth aggressive leadership,
new and improved products will help retain old markets, and will uncover
new ones,
As was to be expected, the rate of investment has slackened a little
this year. But published reports on plans for further^capital expendi­
ture this year and next, show that American industry is continuing to
invest in the future of this country in amounts which are still far beyond
anything experienced in the years before the war.
In short, the basic factors in our national picture today boil down
to just thifet
We have the opportunities —

in our expandihg needs, in our resourees

and in our people.
We have the techniques.
We have the equipment.
And finally, we have the buying power. That is a crucial factor,
and I should like to discuss it a little further at this point.

- 5 -

Take employment and in come s, to begin with. In April, the number of
people working was within one percent of the number employed in the
record-breaking spring of 1948. And currently people in this country are
earning money at the rate of about 214 billion dollars a y®8x 7 - 4 per­
cent higher than a year ago, and within 3 percent of the all-time peak
of last December.
It is an American custom, of course, to try to outdo the other fellow.
That is why record-breaking figures are always news. But, in the period
since the war, we actually became so used to new business records — month
after month, and year after year — that our failure to keep making new
highs during 1949 became the headline news of the year. The remarkable
performance of American business in operating at close to peak levels,
after three years of unprecedented output, was brushed aside.
This performance, however, is the real news of the year. And it has
been accomplished without any impairment of our financial strength.
It is remarkable — wheh we look back on it — that the pressure to
buy or stock everything that could be turned out in three record-breaking
years of peacetime activity failed to result either in over-extended ^
credit or in a dissipation of assets. Throughout the reconversion period,
businessmen — and I include bankers — have been on the lookout for
unhealthy signs.. Their^very caution has tended to keep the situation
under control.
The current position of our great financial institutions is an
excellent example. As you will recall, there have been times in the past,
following periods of active business, when frozen assets were a serious
problem. Today, these problems are absent. There are virtually no ^
excessive speculative positions to liquidate. On the contrary, holdings
of cash and short-term Federal securities are at impressive levels.
In your own field of commercial banking, as you a re;we11 aware,
caution and good judgment have prevented the over-extension of inflartionary credit which characterized some earlier periods of easy sales
and large profits.
I am very much impressed — and I am sure that thoughtful people
throughout the country were likewise impressed — with the results of the
voluntary credit control program of the American Bankers Association last
year. Ihen it looked as if the loan situation migit get out of hand, you
people had the energy and backbone to do something about it; and the whole
country, today, is reaping the benefit. I know that American bankers will
continue their record of good banking performance, now that conditions
have changed and the situation in the business and financial world is
returning to something more like normal*
American business in many sectors of the economy has exercised good
judgment since the end of the war; and, in many cases, it has Çeen with
the aid and assistance of you people in the banking field. Agriculture

~ 6-

is one example that readily comes to mind* Bankers in many communities
in this region have particularly close ties with agriculture; and I know
that you are gratified, as I am, with the sound financial condition in the
agricultural portion of our economy as a whole. Farmers of this country
have 20 billion dollars of liquid assets; that is, their cash, their demand
deposits, their savings accounts, and their Federal Government securities.
This is a tremendous figure. It is nearly eigit or nine times the entire
agricultural income of the Nation 15 or 16 years ago. Anotherbright
point is the relatively small volume of farm mortgage debt. The total oX
5 billion dollars is actually lower than it was at the beginning oi the
war. The entire farm situation is in striking contrast to the experience
during and after World War I .
I have singled out the farmers, merely for purposes of illustration.
The same is true with respect to the liquid asset position of individuals
as a group. It is equally strong concerning business corporations and
financial institutions.
The total liquid savings of all individuals, including farmers, are
currently estimated at over 200 billion dollars -- an amount which is
more than four times the entire national income in the raid-1930 s. About
67 billion dollars of this amount is in savings accounts, Something like
43 billion dollars is in checking accounts. Individual holdings of
Federal securities amount to a little over 68 billion dollars, and 22 bil
lion dollars is in currency.
We have to remember, moreover, that the 200 billion dollar total
figure for the liquid savings of individuals is not a complete picture
of their asset position. In addition, individuals have very substantial
savings in the form of insurance, equities in unincorporated business,
securities of private corporations, obligations of State and local govern-,
ments, and so on, '
The figures on liquid assets alone, however, represent a tremendous
backlog of funds available for future spending. They drive home the fact
that whenever there is reluctance on the part of buyers as at the present,
it is not primarily the result of a lack of money to purchase. The
hesitancy this year reflects rather, a new determination on the part of
all of us to get our money’s worth.
Business enterprise in this country, prior to the war, always ^
operated in an economy of abundance. Techniques were constantly being
improved, and new products better than last year’s models were constantly
coming onto the market.. The result was that the American consumer^
occupied the driver’s seat. It is not surprising that, today, he is
enjoying the feeling of the resumption of his former position.
Certainly this return to normal conditions should not dismay our
alert businessmen. Better than anyone else in the world, we know how to
get out and sell. Private enterprise in this Country has always operated
best in response to the challenge of competition.

<-

- 7I have 'taken a good deal of "time in discussing the business picture,
because I believe that the spotligit has too often been played on the
readjustments going on this year, and too seldom on the reassuring
features of the current business outlook.
My confidence in our future comes from a close analysis of economic
factors which warrant this conclusion. Not the least of these factors is
American intelligence, and the determination to develop opportunities for
increased production and distribution of goods and services. The economic
development of the United States and of every nation has been built upon
the vision and confidence of its people,
Our opportunities for national economic progress and for sustained
high prosperity are tremendous. Our financial and economic position is
basically sound. With the application of reasonably intelligence and
foresight, I believe that we have every reason to face the future with
confidence and enthusiasm.

- o 0 o -

Mimeograph fn g -d la trlh u L tlo n

June 2, 19^9
MEMORANDUM TO THE PRESS:
Secretary Snyder will deliver the commencement address
to graduates of Dickinson College, Carlisle, Pennsylvania,
at 3 P»m. EDT Sunday, June 3» and will receive from
the College the honorary degree of Doctor of Laws*
The Secretary will address the annual convention of the
Utah Bankers Association in the Sun, Valley Lodge Theater,
Sun Valley, Idaho, at 10:30 a.m. MST Tuesday, June 7 »
on the subject "The Business Picture."
A visit to Butte, Montana, to inspect the mining and
metallurgical industries there willbe made by the Secretary
on Wednesday, June $. 0nnThu®1y.1a
The Secretary will arrive at Milwaukee, Wisconsin,
the evening of Thursday, June 9» He will hold a press
conference at 11 a.nu CST Friday, June 10, at the Hotel
Schroeder in Milwaukee, At "Ji^O p.m. CST Friday, June 10,
he will address a Conference of the Special Planning Committee
for Region Seven, Boy Scouts of America, at College Camp,
Wisconsin.
The Secretary will spend Saturday, June 11, in
Little Hock, Arkansas, where he will attend the dedication
of a war memorial. This ceremony will be in connection with
the annual reunion of the World War I 35^h Division,
at which President Truman will be amang^thas» present.
Secretary Snyder will return to Washington Sunday, June 12

TREASURY DEPARTMENT
■Washington

MEMORANDUM TO THE PRESS:

June 2, 19^9

Secretary Snyder will deliver the commencement
address to graduates of Dickinson College, Carlisle,
Pennsylvania, at 3 p.m. EDT Sunday, June
and will
receive from the College the honorary degree of
Doctor of Laws.
The Secretary will address the annual convention
of the Utah Bankers Association in the Sun Valley
Lodge Theater, Sun Valley, Idaho, at 10:30 a.m.
MST Tuesday, June 7 * on the subject "The Business
Picture."
A visit to Butte, Montana, to inspect the
mining and metallurgical industries there will be
made by the Secretary on Wednesday, June 8.
The Secretary will arrive at Milwaukee,
Wisconsin, the evening of Thursday, June 9 . He
will hold a press conference at 11 a.m. CST Friday,
June 10, at the Hotel Schroeder in Milwaukee, At
7:30 p.m. CST Friday, June 10, he will address
a Conference of the Special Planning Committee for
Region Seven, Boy Scouts of America, at College
Camp, Wisconsin.
The Secretary will spend Saturday, June 11,
In Little Rock, Arkansas, where he will attend the
dedication of a war memorial. This ceremony will
be in connection with the annual reunion of the
World War I 35th Division, at which President
Truman will be present.
Secretary Snyder will return to Washington,
Sunday, June 12.

0O0

signîfIcance.

If anyone talks to you

aoout cutting his contribution to the
Boy Scouts, challenge him with these
f aC ts•
It has been a pleasure to be with
you today.

The work you are doing

is a fine example of democracy ana of
American fellowship.

I sincerely

wish you great success.

attitude of confidence in the
business outlook is amply justified.
All that remains is for the
salesman and the customer to get
together.

The customer has the money

and the salesman’s factory has the
productive capacity.

i think that our

private enterprise system can be
depended upon to bridge the gap.

it

has, as a further asset, a considerably
increased population with which to
deal, which is a factor of no small

entering a new era of research and
discovery, which was initiated by
the concentrated efforts of our
scientists under the challenge and
urgency of war.

Each new scientific

discovery opens an entirely new
field, which provides the basis for
further discoveries.
With this reassuring view of
the future, and with the basic
strength which underlies our present
business structure,

I feel that an

29
of consumer goods, and into better
and cheaper types of familiar
/
products.
Within a relatively few years,
we may expect revoIutionary changes
in our economic life through the
development of atomic energy.
Incalculable advances in industry,
in medicine, and in research will
be made possible through the atomic
energy program.
evidence,

There is every

in fact, that we are

28

in recent years, and of the new
processes and techniques which

have been developed.
Here we have the foundation
for a dynamic era of progress in
the years ahead.

Under the urgent

reauirements of the war, many
important discoveries were made in
new types of materials, new chemical
products, and new industrial
techniques.

These discoveries will

shortly be translated into new types

27
fte also have a business machine
supolied with $65 billion in w o t k Ing
capital -- only slightly below last
'

\\ .

year’s record pea«.

That same

business structure has greatly
expanded its oient and other
equipment.

Business as t whole has

invested more than $75 billion in
construction and equipment since
the war ended.

This plant expansion

places business in a position to
rnaKe effective use of the many new
materials which have been discovered

26
Government securities.
tremendous figure.

This is i

it is eight or

nine times the entire agricultural
income of the Nation 15 or 16 years
ago.

Another bright point is the

relatively small volume of farm
mortgage debt.

The total of

5 billion dollars is actually Io*er
than it «as at the beginning of the
*ar.
\

The entire farm situation is

in str ik ing contrast to the experience
durins and after

'ft

or 1d Aar I.

Other types of savings have
also shown a great increase.

Life

insurance and oension reserves of
individuals, for example, have risen'"
by $57 billion since 1939 -- to a
total of $90 biI I ion.
Consider the strong situation
of the farming industry.

Farmers '

of this country have 20 billion
dollars of liquid assets; that is,
f

their cash, their demand deposits, the
savings accounts, and their Federal

O A
¿4
•

further

Americans nave
sb v InK s •

y

$22 bill ion in cash

200 b i 1 ! ion in
ho 1d an es
$ 43 b i1 1ion in

oerscma I cheCKing acceount s , and

ounts.

b iI Iion 1fi sav îi
ho Id $48 billion

;sv inr s bond

a no $20

billion în other Federal

bovernri

ni securities.

I risse

of liquid assets are more

an three

and one-ha if times ss large as at
the beginning of the war in

Iings

- 23
consequence,

we have no reason to

fear a reoetition of the forced
liquidation of commodities and
securities which followed the brief
Dostwar boom after the First AorId
Aar.

On the contrary, we have the
advantage of being exceot ione IIy
strongs financial ly, both as to
individuals and as to business,
which olaces the economy in an
unusually favorable nosition for a

,v' ■
:

22
in fact, since-'the v ery

of the

*ar, as industry after

try

its transition

has

y

Cl

buyers’ marxet
na-ricab Ie

It i s a

t imony

sense and caution of

to the

ericen people that
record-c

aK m g

I v?

%

peacetime

activity have resulted neither in
ov er-extended credit,

in

speculation, or in a dissipation
persona I or business assets.

In

21
wh ich was a record for that month.
Industrial production was down only
5 percent.

Retail sales, however,

were 3 percent higher than in April
last year, and total personal
income is at the rate of about
$214 billion a year.
does not Iook

To me, this

Ii k e a recession.

The readjustment period which
we are going through is not a sudden
development.

It has been going on,

is continuing to operate at close
to record levels, after three years
of unprecedented output, has been
over IooKed entirely too much.
The latest figures show that
our major economic indexes are
holding very close to last year’s
levels for the comparable months,
or even exceeding them.

Employment

in April was only one percent
below last year’s figure,

- 19 of our historic economic progress.
It is normal to expect minor
declines in business from time
to time, even when the general
trend is upward.

But, in the

period since the war, we became
so used to new business records
month after month, and year after
year, that our failure to make new
highs in i 943 becomes a topic of
discussion.

The fact that business

18 Some will doubtless use this as an
argument for reducing their
contributions, active or financial,
to nationwide betterment programs.
But such arguments must be
/

challenged.

The facts show that
A

we are going through a necessary
and healthy business readjustment
as we return to normal buyers'
markets and free competition.
are the conoitions which,
I

These

in the

past, have provioeo the foundation

17
It seems to me that the rapidly
expanding fields of human effort offer
as great, or greater possibilities
to the young men ano young women of
tnis generation than the world has
ever before offered.

This i£

particularly true in America.
Let me give you a few of the
facts that inspire my confidence
in the future.

As you talk with

businessmen, some will .tell you
that a business recession is under way

re Iat ionsh ips.
New and vital problems of
government, of social and economic
organ 1zation, and of Internet IonaI
relations are facing us -- the solution
for which calls for exceptional
wisdom, high skill and good faith.
But new opportunitIes also march
hand in hand with these challenging
new problems,

if there are difficult

questions to answer, there are
likewise great achievements to be
wrought.

■

- 15 and who will be guided by high
ethical standards.
Far-reaching changes in our
social

life and in our economic

structure have come about in recent
years.

Science has pushed forward

the horizons of knowledge, both
theoretical and practical.

These

changes affect ail phases of human
experience, and they have been
attended by far-reaching readjustments
in our social, economic and political

world.

The Scout spirit of tolerance,

mutual respect, ana unselfish service
is a positive factor in our aim for
peace and internat ionaI cooperation.
Jue in part to the work of the
Boy Scouts ana similar organ izat ions,
we can have reasonable confidence
that we can surrender our national
and internat ionaI respons ibi I¡ties
to another generation -- a generation
whose hands will have been we I I
trained, whose minds are disciplined,

which Scouting makes to the equipping
of youth for citizenship.

More than

ever before we need to apply the
Scout watchword of MBe Prepared".
Of more than ordinary interest
to me at this time is the contribution
of the Boy Scouts to the fostering
of friendship, understanding, and
;

•

...

if| s

good will throughout the world.
development of attitudes of
international brotherhood is one
of our great hopes in an uneasy

The

used for a worthier purpose.
Character -- honor —

decent behavior

1 do not see how anyone could deny
that it is well worth giving to help
produce these values.
Those of you whose planning
for the Seventh Region may include
monetary responsibilities deserve
the Seventh Region's special
apprec¡at ion.
Certainly more than ever the
world toaay needs the contributions

referred to as "the sinews of war."
To the Boy Scoots, collars are sinews
of war against juvenile delinquency,
against crime, against the insidious
danger of denying boys the benefits
of wholesome companionship ana of
participation in helpful and
instructive activities.

No one,

then, need ever be apologetic about
asking people and communities for
tunas with which to meet Scouting*s
needs.

Surely, dollars cannot be

-

10

enlighten our boys to follow the
right path.

Money cannot remake or

recover the past, but it can help
provioe the means for redressing
the past by Helping to shape the
future.

Properly used, it can

afford a reasonable assurance of
the continuance of those qualities

which nave distinguished the American
If•;fg

m t§|j§§jg*

V |

peop le.
In the earlier years of this
oecade we often heard dollars

|&

- 9 living.

Decent behavior manifests

itself in better communities, and
in better families.

The integrity

of the family unit is still the
true basis for our society.
All the money in the world
%
cannot turn back the clock, nor
effectively influence the boy after
he has gone too far on the wrong
road of life.
wrong.

Money cannot undo

But it can help greatly to

build centers of inspiration to

purpose we seek with every dollar
spent for the support of the Boy Scout
The fieri and women who volunteer
their effort and their financial
support to this group underwrite a
program which insures immeasurable
benefits not only for their own
families, but for their community
and their country.
Ip *

Ahere there is Scout activity

there is character in the making.
Honor becomes a vivid part of daily

7
c a n ’t buy everything."

By this we

ordinarily mean that the values of
honorf character and decent human
behavior cannot be measured by
money standards.

In that sense,

the saying is unquestionabI y true.
Nevertheless,
q pc;p

in the practical

^0 all Know that money Is

necessary to estsbIi sh the env ironment
and provide the physical facilities
to help nurture and develop the
essentia I v irtues.

This is the

6

l know, as do you, that there
are millions of American boys who
want Scout training and who need it.
It should be the job of all Americans
to help these boys and to lend
vigorous support to the Scout movement.
1 hope to see this organization expand
even more rapioly through the determined!
help of community leadership throughout
the country.

It is a responsibiIity

which should be a privi

as well.

There is a saying that "money
mmm

and influences that boys need.

It

develops the qualities of leadership,
of se If-reIiance, and of group
cooperation.

It fosters the ideals,

values, and attitudes that should
go into the making of a proper man.
The boy who learns ana practices
"Scout's honor" usually becomes the
man who wins the respect and confidence
of his neighbors.

He becomes the

kind of citizen upon which our
democracy is built.

companionship, and for adventure are
to be met.
Boys now receive a very vital
part of their education outside of
the home and school.

The Boy Scouts

and related organizations are playing
an important role in providing this
education ana special training that
our formal education does not include.
Scouting provides a wholesome
environment for recreation and fun.
It offers the kind of companionships

3
A few decades ago the home was
the sheltered center of our youthful

activities.

Today, aspects of

modern society have tended to
compete with the home.

As a result,

the influence of the home, as we
knew it in our youth, has tended to
oiminish, and it now seems that the
institutions of home, school and
church can usefully and properly be
supplemented if youth’s craving
for interesting activity, for

-

2

-

the youth of this country.

But
if

such statistics give an unfair
picture of the work which is daily
being accomplished in the education
and character building of the vast
'majority of our youth.

And the

Scout movement, reaching more and
more boys in the crowded sections
of our cities,

is taking a most

important part in our national
campaign for suppression of juvenile
oe Iinquency.

The Boy Scout organization
stanos for the promotion of good
citizenship.

in the 40 years of

activity in the United States, the
Scouts in their achievements have
become closely identified with our
highest standards of character
b u i id ing.
Statistics on crime and juvenile
delinquency are frequently cited as
an indication that America is not
meeting her respons ib iIi ty in training

hmms
m m im cz

m

m
a
arara»

or nas » s ä pusbmo a » ? ®
m

a

M

m o m

ssigea* ofm:,>i ca
« « a

s* » t n saxm w

tu rn »

i$#

TREASURY. DEPARTMENT
Washington

The following address by Secretary Snyder before
a Conference of the Special Planning Committee
for Region Seven, Boy Scouts of America, at
College Camp, Wisconsin, is scheduled for delivery
at 7:50 p«m> CST Friday. June 10. 1949. and is for
release at that time.

treasury: department

Washington

The following address try Secretary Snyder before
a Conference of the Special Planning Committee
for Region Seven, Boy Scouts of America, at
College Camp, Wisconsin, is scheduled for delivery
at 7; 30 p®m® CST Friday. June 10. 19A9 and is for
release at that time»

The Boy Scout organization stands for the promotion of good citizen­
ship® In the 4.0 years of activity in the United States, the Scouts in
their achievements have become closely identified with our highest standards
of character building®
Statistics on crime and juvenile delinquency are frequently cite,d as
an indication that America is not meeting her responsibility in training
the youth of this country® Bat such statistics give an unfair picture of
the work which is daily being accomplished in the education and character
building of the vast majority of our youth® And the Scout movement, reaching
more and more boys in the crowded sections of our cities, is taking a most
important part in our national campaign for suppression of juvenile
delinquency®
A few decades ago the home was the sheltered center of our youthful
activities® Today, aspects of modern society have tended to compete with
the home® As a result, the influence of the home, as we knew it in our
youth, has tended to diminish, and it now seems that the institutions of
home, school and church can usefully and properly be supplemented if youth’s
craving for interesting activity, for companionship, and for adventure are
to be meto
Boys now receive a very vital part of their education outside of the
home and school® The Boy Scouts and related organizations are playing an
important role in providing this education and special training that our
formal education does not include®
Scouting provides a wholesome environment for recreation and fun® It
offers the kind of companionships and influences that boys need® It develops
the qualities of leadership, of self-reliance, and of group cooperation®
It fosters the ideals, values, and attitudes that should go into the making
of a proper man® The boy who learns and practices "Scout’s honor11 usually
becomes the man who wins the respect and -confidence of his neighbors® He
becomes the kind of citizen upon which our democracy is builto
I know, as do you, that there are millions of American boys who want
Scout training and who need it® It should be the job of all Americans to
help these boys and to lend vigorous support to the Scout movement® I hope
to see this organization expand even more rapidly through the determined
help of community leadership throughout the country® It is a responsibility
which should be a privilege as well0
S-2011

2
There is a saying that ’’money can’t buy everything©’’ By this we
ordinarily mean that the yalhes of honor, character and decent human
behavior cannot be measured by money standards© In that sense, the saying
is unquestionably true« Nevertheless, in the practical sense, we all know
that money is necessary to establish the environment and provide the
physical facilities to help nurture and develop the essential virtues©
This is the purpose we seek with every dollar spent for the support of the
Boy Scouts©
The men and women who volunteer their effort and their financial
support to this group underwrite a program which insures immeasurable
benefits not only for their own families, but for their community and
their country©
T/here there is Scout activity there is character in the making,, Honor
becomes a vivid part of daily living© Decent behavior manifests itself in
better communities, and in better families0 The integrity of the family
unit is still the true basis for our society©
All the money in the world cannot turn back the clock, nor effectively
influence the boy after he has gone too far on the wrong road of life©
Money cannot undo wrong© But it- can help greatly to build centers of
inspiration to enlighten our boys to follow the right path0 Money cannot
remake or recover the past, but it can help provide the means for redressing
the past by helping to shape the future© Properly used, it can afford a
reasonable assurance of the continuance; of those qualities which have
distinguished the American people0
In the earlier years of this decade we often heard dollars referred to
as ’’the sinews of war©,r To the Boy Scouts, dollars are sinews of war against
juvenile delinquency, against crime, against the insidious danger of denying .
boys the benefits of wholesome companionship and of participation in helpful
and instructive activities© No one, then, need ever be apologetic about
asking people and communities for finds with which to meet Scouting’s needs0
Surely, dollars cannot be used for a worthier purpose© Character — honor —
decent behavior — I do not see how anyone could deny that it is well worth
giving to help produce these values0
Those of you whose planning for the Seventh Region may include monetary
responsibilities deserve the Seventh Region’s special appreciation©
Certainly more than ever the world today needs the contributions which
Scouting makes to the equipping of youth for citizenship© More than ever
before we need to apply the Scout watchword of ”Be Prepared”©
Of more than ordinary interest to me at this time is the contribution
of the Boy Scouts to the fostering of friendship, understanding, and good will
throughout the world© The development of attitudes of international brother­
hood is one of our great hopes in an uneasy world© The Scout spirit of
tolerance, mutual respect, and unselfish service is a positive factor in our
aim for peace and international cooperation©

Due in part to the work of the Boy Scouts and similar organizations,
we can have reasonable confidence that we can surrender our national and
international" responsibilities to another generation — o. generation whose
hands will have been well trained, whose minds are disciplined, and who
will be guided by high ethical standards«
Ehr-reaching changes in our social life and in our economic structure
have come about in recent years,, Science has pushed forward the horizons of
knowledge, both theoretical and practical« These changes affect all phases of
human experience, and they have been attended by far-reaching readjustments in
our social, economic and political relationships«
New and vital problems of government, of social and economic organization
and of international relations are facing us — the solution for which calls
for exceptional wisdom, high skill and good faitho Hit new opportunities
also march hand in hand with these challenging new problems« If there are
difficult questions to answer, there are likewise great achievements to be
wrought«
It seems to me that the rapidly expanding fields of human effort offer
as great, or greater possibilities to the young men and young women of this
generation than the world has ever before offered« This is particularly
true in America«
Let me give you a few of the facts that inspire my confidence in the
future« As you talk with businessmen, some m i l tell you that a business
recession is under way« Some will doubtless use this as an argument for
reducing their contributions, activé or financial, to nationwide betterment
pro grams o
Hit such arguments must be challenged« The facts show that we are
going through a necessary and healthy business readjustment as we return
to normal buyers’ markets and free competition« These are the conditions
which, in the past, have provided the foundation of our historic economic
progress«
It is n o m a l to expect minor declines in business from time to time,
even when the general trend is upward« But, in the period since the war,
we became so used to new business records month after month, and year after
year, that our failure to make new highs in 1949 becomes a topic of dis­
cussion« The feet that business is continuing to operate at close to
record levels, after three years of unprecedented output, has been over­
looked entirely too mucho
The latest figures shov* that our major economic indexes are holding
veiy close to last year’s levels for the comparable months, or even
exceeding them« Employment in April was only one percent below last year’s
figure, which was a record for that montho Industrial production was down
only 5 percent« Retail sales, however, were 3 percent higher than in April
last year, and total personal income is at the rate of about $214 billion
a year« To roe, this does not look like a recession,.

The readjustment period which'we are going through is not a sudden
developmento It has been going bn, In fact, since the very end of the
war, as industry after industry has made its transition to a buyers
marketo
It is a remarkable testimony to the good sense and caution of the
American people that the three record-breaking years of peacetime activi y
have resulted neither in over-extended credit, in excessive speculation,
in a dissipation of personal or business assets0 In consequence, we
no reason to fear a repetition of the forced liquidation of^commodities
and securities which followed the brief postwar boom after the Pirst world
fare
On the contrary, we have the advantage of being exceptionally strong
financially, both as to individuals and as to business, which places the
economy in an unusually favorable position for a further advancement«,
Americans have 0200 billion in liquid savings« They hold an estimated
$22 billion in cash, $43 billion in personal checking accounts and $67
billion in savings accounts« They hold $4-8 billion in savings bonds f *
$20 billion in other Federal Government securities0 These holdings of liquid
assets are more than three and one-half times as large as at the beginning
of the war in 1939®
Other types of savings have also shorn a great increase« Life insurance
and pension reserves of individuals, for example, have risen by $57 1 lon
since 1939 — to a total of $90 billion«
Consider the strong situation of the farming industry0 Farmers of this
country have 20 billion dollars of liquid assets; that is, their cash, their
demand deposits, their savings accounts, and their^Federal Government
securities« This is a tremendous figure« It is eight or nine times
entire agricultural income of the Nation 15 o f 1& years ago0
o
e
bright point is the relatively small volume of farm mortgage debt« ^Ine
total of 5 billion dollars is actually lower than it was at ttebeginning
of the war« The entire farm situation is in striking contrast to the
experience during and after "World far I 0
fe also have a business machine supplied with $65 billion in working
capital — only slightly below last year’s record peak« That same business
structure has greatly expanded its plant and other equipment«
isiness as
a whole has invested more than $75 billion in construction and equipment
since the war ended« This plant expansion places business m a p o s i t i o n s
make effective use of the many new materials which have been discovered in
recent years, and of the new processes and techniques which have been
developed«
Here we have the foundation for a dynamic era of progress in the years
ahead« Under the urgent requirements of the war, many important discoveries
were made in new types of materials, new chemical products, and nevf indus­
trial techniques« These discoveries will shortly be translated^into new
types of consumer goods, and into better and cheaper types of familiar
productso

- 5 -

Within a relatively few years, we may expect revolutionary changes in
our economic life through the development of atomic energy« Incalculable
advances in industry, in medicine, and in research will be made possible
through the atomic energy program« There is every evidence, in^fact, that
we arc entering a new era of research and discovery, which was initiated
by the concentrated efforts of our scientists under the challenge and
urgency of war« Each new scientific discovery opens an entirely new field,
which provides the basis for further discoveries«
With this reassuring view of the future, and with the basic strength
which underlies our present business structure, I feel that an attitude
of confidence in the business outlook is amply justified«,
All that remains is for the salesman and the customer to get together«
The customer has the money and the salesmans factory has the productive
capacity« I think that our private enterprise system can be depended upon
to bridge the gap« It has, as a further asset* a considerably increased
population with which to deal, which is a factor of no small significance«
If anyone talks to you about cutting his contribution to the Boy Scouts,
challenge him with these facts0
It has been a pleasure to be with you today« The work you^are doing
is a fine example of democracy and of American fellowship« I sincerely
wish you great success«

-0 O 0 —

Comparison of principal items of assets and liabilities of national banks - continued
______
(In thousands of dollars)
____________________
* Apr. 11,
:
1949
e

*
I Dec. 31 •
;
19U 8

•
• Apr. 12t
;
194s

Increase or decrease{Increase or decrease
*since Dec. 31. 19tyS :since April 12. 19tyS
; Amount
: Percent
: Percent: Amount

LIABILITIES
Deposits of individuals, partner-»
ships and corporations:
Demand. ...... .............. .$tyty,318,28ty $47 ,004,636
18,828,056
Time ....................... . 18,907,230
1 ,501,688
.
1
,
8
x
2.611
Deposits of TJ. S. Government....
2,720
3,346
Postal savings deposits..........
Deposits of States and political i
5,230,758
subdivisions................... . 5.294,587
.
6,887,424
7,81*3,607
Deposits of hanks................
Other deposits (certified and
1.236.551
887.431
cashiers' checks, etc*).... .
81,048*01b
Total deposits.............. . 7 S . n o ,913
Bills payable, rediscounts and
other liabilities for borrowed
1*1,330
money..........................
89,553
771*. 818
787.200
Other liabilities................
Total liabilities, excluding
82.ty6ty.l6ty
capital accounts.......... . 78.987.666
CAPITAL ACCOUNTS
Capital stock:
2l*,Ol*5
22,169
Preferred............. ...... .
1.80l*.7ll*
. 1.882.857
1.828.759
Total......... ........... . 1.905.02b
2,510,495
Surplus........................... . 2,478.494
1 ,009,365
Undivided profits................ . 1,068,755
322.269
.
325.119
Total surplus, profits, and
3.8ty2.129
reserves.................. . 3.872.368
5 .670.888
Total capital accounts..... . 5.777.39*1
Total liabilities and cap­
88.135.052
ital accounts............. . sty.765.060

Eatloss

Percent

U.S.Gov't securities to total assets ty0.80
Loans and discounts to total assets 27*06
Capital accounts to total deposits
7*ty0
NOTE:

Minus sign denotes decrease.

Percent
39*69
27*03
6.95

$45,134,137 -$2 ,686,352
79.174
18,767,225
1 ,526,220
310,923
626
2,803

-5*72
.ty2
20.70

23.01

-$815,853

543

-1.81
.75
18.76
19.37

140,005
286,391

1*.907,268
7 ,034,821

63,829
-956,183

1.22
-12.19

387,319
-147,397

7.89
-2.10

1 .094.772
7 ^ 7 , db-

-349.120
-3,537,103

-28.23

-4.33

-207,341
-356,333

-18.9ty
-.^5

152,315
769.669

48,223
12.382

116.68
1.60

- 62,762
17.531

-tyl.2l
2.28

79.389.230

-3.476,498

-4.22

-ty01.56ty

-.51

25.235
1.774.713
1.799.9^*8
2,419,482

-1.876
78.143
76 > 6 7
-32,001
59,390
2.850

-3,066
108.ltyty
105.07$
59,012
106,965
-32.329

-12.15

3.57
*•31
-.19

961,790
357.448

-7.80
4,33
4.17j
- I .27
,5.S8
v
.88

.79

3.73S.720
5.538.668

106.506

1.88

133.648
238.726

84.927.898

-3,369.992

-3.82

-162,838.

Percent
^3*51

25.69
7.06

30.239

6.09

5.Sty
2.tyty
11.12
-9.04

Statement shoving comparison of principal items of assets and liabilities of active national banks
as of April 11, 19I+9, December 31, 19I+8 , and April 12, 19I+8
(In thousands of dollars)
:
:
____________________________________ ¡
Number of banks...................
ASSETS

anr

19^-9

*

1+.996

:t w
xi
:Am* i p
¡Increase or decrease ¡Increase or decrease
:
19^8 *
:^iQlfg *
¡since Dec» 31. 19to ¡since April 12. 19*18
¡_____________¡
______ : Amount
¡ Percents Amount
¡ Percent
1+.997

5,01*+

-1

Loans and discounts, including
overdrafts....................... $22,91+1,026 $23,818,513 $ 21,816,31+1
-$877,1+87
U. S. Government obligations,
direct and guaranteed...........
ÿ+,582,806 3>+,980,263 36,955.61+7
-397,1*57
Obligations of States and political subdivisions...............
3,289,963
3,190,189
3,172,597
99,771*
Other bonds, notes, and debentures
1,898,185
1,901,718
1.962,559
3,533
Corporate stocks, including
I 6I.O62 , 159,716 , 157.536
stocks of Federal Reserve banks.
... 1 .31*6
Total securities.............
-292.801+
39.935.51+9 to.228.353 to.248!339
Total loans and securities... 62.876.575 6U,oto .866 64,06^,680 -1,170.291
Currency and coin.................
1,116,002 l,Oto,763
1,087,322
75,239
Reserve with Federal Reserve
bank.............................
12,550,367 13,382,1*01+ XI,062,360
- 832,037
Balances with other banks.........
7-189.537
8.601.102
7.773.739 -1.1+11.565
Total cash, balances with
other banks, Including re­
serve balances and cash items
in process ofcollection.... 20.855.906
23.02^.269
19.923.1+21 -2.l68.363
Other assets......................
Total assets

1.032.579

1,063.917

939.797

-31.338

8l+,765,060 88,135,052

8U,927 ,898

-3 ,369,992

-.02

-18

-.36

- 3.68

$ 1 ,121+,685

5.16

-1.1*+

-2.372,81+1

- 6.1+2

3.13
.19

-60,81+1

3*70
-3.10

.81+
3.526
-•73 -2.312.790
-1.83 -1,188|105
7.23 ‘ 28,680

2.21+
-5.1*7
-l.~85
2.61+

- 6.22
-16.1+1

1 ,1+88,007
-581+.202

13.1+5
-7.52

-9.1+2

932.1+85

1+.6S

-2.95

92.782

9.87

- 162,838

-.19

-3.82

117,366

-

2

-

subdivisions held amounted to $3 »3 ®^»0 0 ®,0 0 0 , an increase of $ 1 0 0 ,0 0 0 (0 0 0 over the
December figure» and other securities held were $2,000,000,000, a slight increase
since December.
Cash of $1,116,000,000, balances with other banks of $7,190,000,000 and re­
serve with Federal Reserve banks of $12,550,000,000, a total of nearly
$21,000,000,000, decreased more than $2,000,000,000 since December 31*
The unimpaired capital stock of the banks on April 11, 19^9 was $1*9^*®^®*^^*
including $22,000,000 of preferred stock.

Surplus was $2,U 7 8 ,000,000, undivided

profits $1 ,0 6 9 ,0 0 0 , 0 0 0 and reserves $3 2 5 ,0 0 0 ,0 0 0 .

The total capital accounts of

$5,777,000,000 were $106,000,000 more than in December and $239 1000,000.more than
in April last year.
United States Government securities were ^0.80 percent of total assets on
April 11, and loans and discounts were 27*06 percent.
accounts to total deposits was 7*^3 percent.

I

The percentage of capital

TREASURY DEPARTMENT
Washington
S O T HELSASS, H O M I N G NEWSPAPERS
•sor-J-x. C>j l_~

,J 3 r.)JL¥JL

The total assets of national hanks on April 11 of this year amounted to
$8 5 ,000,000,000, it was announced today by Comptroller of the Currency Preston
Delano.

The returns from the call covered the k,S$ 6 active banks in the United

States and possessions.

The assets were $3*000,000,000, or nearly ^ percent, below

the amount reported by the H.997 active banks as of December 3 1 » 19^8» the date of
the previous call, and were just slightly below the amount reported by the 3 *0 1 ^ ac­
tive banks as of April 12, 19*+$» the date of the corresponding call a year ago.
The deposits of national banks on April 11, 19^9» were more than $78,000,000,000.
which was a decrease of $3,500,000,000, or k percent, since December and a decrease
of only $350,000,000 since April last year.

Included in the current deposit figures

are demand ¿«posits of individuals, partnerships, and corporations of $l&,3 0 0 ,0 0 0 ,000 ,
which decreased $2,700,000,000, or 6 percent, since December, and time deposits of
individuals, partnerships,and corporations of $ 1 8 ,9 0 0 ,0 0 0 ,0 0 0 , an increase of
$79*000,000.

Deposits of the United States Government of $1,800,000,000

$300,000,000 more than in December*

were

Deposits of States and political subdivisions

of $5 *3 0 0 ,0 0 0 , 0 0 0 showed an increase of more than $ 6 0 ,0 0 0 ,0 0 0 , while deposits of
banks totaling $6,900,000,000 were $950,000,000, or 12 percent, less than in Decem­
ber.

Postal savings deposits were $3*000,000 and certified and cashiers' checks,

etc. were nearly $9 0 0 ,0 0 0 ,0 0 0 .
Loans and discounts on April 11 were nearly $ 2 3 »000,000,000, which was a de­
crease of $900,000,000, or nearly 4 percent, since December last, but were more than
$1,000,000,000, or 5 percent, than in .April a year ago.
The banks held obligations of the United States Government of more than
$3^*000,000,000, which was a decrease of $U00,000,000 since December, and a decrease
of $2,^00,000,000 since April last year.

Obligations of States and political

TREASURY DEPART
Information Service
release, m o r n i n g n e w s p a p e r s ,

Friday, June 3* 1949.______

S-2012

The total assets of national banks on April 11 of this year amounted to
$85,000,000,000, it was announced today by Comptroller of the Currency Preston
Delano* The returns from the call covered the 4,996 active banks in the United
States and possessions* The assets were $3,000,000,000, or nearly 4 percent,
below the amount reported by the 4,997 active banks as of December 31, 1948,
the date of the previous call, and were just slightly below the amount reported
by the 5,014 active banks as of April 12, 1948, the date of the corresponding
call a year ago.
The deposits of national banks on April 11, 1949, were more than
$7 8 ,0 0 0 ,0 0 0 ,0 0 0 , which was a decrease of $ 3 ,5 0 0 ,0 0 0 ,0 0 0 , or 4 percent, since
December and a decrease of only $350,000,000 since April last year. Included
in the current deposit figures are demand deposits of individuals, partnerships,
and corporations of $44,300,000,000, Which decreased $2,700,000,000, or 6 per­
cent, since December, and time deposits of individuals, partnerships, and
corporations of $18,900,000,000, an increase of $79,000,000. Deposits of the
United States Government of $1,800,000,000 were $300,000,000 more than in
December, Deposits of States and political subdivisions of $5,300,000,000^
showed an increase of more than $ 6 0 ,0 0 0 ,0 0 0 , while deposits of banks totaling
$6,900,000,000 were $950,000,000, or 12 percent, less than in December. Postal
savings deposits were i#3 ,0 0 0 , 0 0 0 and certified and cashiers’ checks, etc* were
nearly $900,000,000*
Loans and discpunts on April 11 were nearly ^23,000,000,000, which was a
decrease of $900,000,000, or nearly 4 percent, since December last, but wore
more than $1,000,000,000, or 5 percent, than in April a year ago.
The banks held obligations of the Iftiited States Government of more than
$34,000,000,000, which was a decrease of $400,000,000 since December, and a
decrease of $2,400,000,000 since April last year* Obligations of States and
political subdivisions held amounted to ^3,300,000,000, an increase of
$100,000,000 over the December figure, and other securities held were
$2,000,000,000, a slight increase since December.
Cash of $1,116,000,000, balances with other banks of $7,190,000,000 and
reserve with Federal Reserve banks of $12,550,000,000, a total of nearly
$21,000,000,000, decreased more than $2,000,000,000 since December 31*
The unimpaired capital stock of the banks on April 11, 1949 was
$1,900,000,000, including $22,000,000 of preferred stock. Surplus was
$2,478,000,000, undivided profits $1 ,0 6 9 ,0 0 0 , 0 0 0 and reserves $ 3 2 5 ,0 0 0 ,0 0 0 .
The total capital accounts of $5,777,000,000 were $1 0 6 ,0 0 0 , 0 0 0 more than in
December and $239,000,000 more than in April last year.
United States Government securities were 40.80 percent of total assets
on April 11, and loans and discounts were 27.06 percent. The percentage of
capital accounts to total deposits was 7.40 percent.

comparison of principal items of assets and liabilities of active national hanks
Statement showing
as of April 11, 1949, December 31» 1948, and April 12, 1948
(In thousands erf dollars)

•

Apr» 11» « Dec. 3 1 » i
1948
.
I9 U 9 " j
Humber of banks •••••••••

4,99b

.

4,997....

Apr. 12»
194s
Of UliT

:Increase or1 decrease:!Increase or «decrease
:since Dec. 31* 1948 :since Aeril 12, 1948
t Percent
: Amount
: Percenti Amount
no
-18
*-u 36

ASSETS
JLoans and discounts, including

$2 2 ,9 !+l,0 2 6 $2 3 ,8 1 8 . 5 1 3 $2 1 ,8 1 6 ,3 UI

D. S. Government obligations,
direct and guaranteed »••«•*•••* 3 4 ,5 8 2 * 8 0 6
Obligations of States and polit­
ical subdivisions **•••••»••**«•
3 ,2 8 9 ,9 6 3
i, 901,718
Other bonds, notes, and debentures
Corporate stocks, including
l6 l * 06 2
stocks of Eederal Reserve banks«,.
79.9^5.549
Total securities •
62.876.575
1 ,1 1 6 , 0 0 2
Currency and. coin »•••*•••.««
Reserve with Eederal Reserve
12,550,367
7.189*537
Balances with other banks ••••••,«.
Total cash, balances with
other banks, including re­
serve balances and cash items
in process of collection,•«•• 20.S55.906
1,032,579
Other a s s e t s ........ .............
8
^,
7 6 5 .0 6 0
Total assets » * • *.'•**.*

-$877,^87

-3 . 6 8

5 .1 6

$1,124,685
1

-6.42

3 ^,9 8 0 , 2 6 3

36,955.647

-397,457

-1*14

-2,372,841

3,190,189
1,898,185

3,172.597
1,962,559

99,774
3.533

3 .1 3
.1 9

1 1 7 ,3 6 6

9 .7 0

— 6 0 ,84i

“ 3 *1 0

.84

2 . 24 ,
3 ,5 2 6
-5.47
- 2 .3 1 2 , 7 9 0
-1,188,105 ....-1.85
— ■ »\'tm
m
2.64
2 8 ,680 “

159,716
40.228*353
64,o46,sëë
l,OHo,763

1,346
157,536
-292,804
42.248,^39
64,064,680 -1.170.291
1,087,322
75,239

. - .7 3
-1.83

13,382,404
8 .6 0 1 , 1 0 2

1 1 ,0 6 2 , 3 6 0

-832,037
7.773,739 -1.411,565

-6 . 2 2
-i6.4i

1,488,007
-584,202

2 3 ,0 2 4 , 2 6 9

1 9 ,9 2 3 . ^ 2 1 - 2 ,1 6 8 ,3 6 3
9 3 9 .7 9 7

-9.42

-31,338

-2.95

932,485
92,762

84,927,896 -3,369.992

-3.82

1.063*917
8 8 ,1 3 5 , 0 5 2

7 .2 3

-1 6 2 ,8 3 8

1 3 .4 5

-7« 52_

U.Ô8
9*67

-.19

3
Comparison of principal items of assets and liabilities of national banks - continued
(in thousands
CL--?
arÛ .
:Increase or decrease:Increase or decrease
Apr» llf
Apr» 12,
Dec,
:since Sec» 31# 19*48 :since April 12, 19*48
19*48
19*48
1949
: Amount
iPercent : Amount
1 Percent
LIABILITIES
Deposits of individuals, Partner-

€

f V

6

#

1

•

.**2

20*70
23*01

-$815,853
1 *4 0 ,0 0 5

-1.81
.75

2 8 6 ,3 9 1
543

1 8 .7 6
1 9 .3 7

1*22

3 8 7 ,3 1 9

-12*19

-147,397

7.89
-2 ^ 0

-28.23
-4 . 3 3

-207.341
-356,333

-18*.9*4
-.45

1 1 6 .6 8
I. 6 0

-62,762
17,531

-*41.21

-4.22

-*401,56*4

-.51

- 7 ,BO

-3 ,0 6 6
108,1*4*4
105,078

4 .3 3

4.17
-1 .2 7
5 .8 8
«88

- 1 2 .15
6*09
5.8*4
2. *4*4

5 9 .0 1 2
1 0 6 ,9 6 5

11*12

-9.04

-32,329

1*88

133,648
238.726

-3.82

-1 6 2 ,8 3 8

.79

2*28

g

S

-5.72

i

$*4*4,318,28*4 $*4 7 ,0 0 *4 ,6 3 6 $4 5 ,1 3 4 , 1 3 7 -$2 ,6 8 6 , 3 5 2
1 8 ,8 2 8 , 0 5 6
1 8 .9 0 7 . 2 3 0
79.174
1 8 ,7 6 7 , 2 2 5
1 ,8 1 2 , 6 1 1
Deposits of U. S, Government
1 ,5 0 1 , 6 8 8
1 .5 2 6 , 2 2 0
310,923
Postal savings deposits ••*•*»..*•»•
2,720
626
3.346
2 .8 0 3
Deposits of States and political
subdivisions , • • . . • • . .
4 ,9 0 7 , 2 6 8
5.230,758
5.294.587
63.829
Depo sits of banks ** »*••»■<•*-**•**•*♦« »• 6,887,*42*4
7 ,0 3 4 . 8 2 1
7.8^3,607
-956,183
Other deposits (certified and
cashiers1 checks, ^tc,
♦*
-349.120
887, *431
__1.236.551 „ i_.094.772
78,467.246 -3.537,103
8 1 ,6 *1 8 ,0 1 6
Totp&X d&posits
■n« 4 « •*#♦v 7 8 ,1 1 0 , 9 1 3
Bills payable, rediscounts and
other liabilities for borrowed < 5
money
4 i ,}30
**8 , 2 2 3
8 9 .5 5 3
152.315
774,818
Other liabilities **.i....... *.,*.,
787.200
769,669
12,382
Total liabilities, excluding
8 2 ,*46*4,16*4
capital accounts *••*•*•••*.» 78.987.666
79.389.230 -3.476.498
CAPITAL ACCOUNTS
Capital stock:
Pr eferred .** .** *.*..**,. *.* *.* .
24,01*5
-1 , 8 7 6
22,169
25 »235
Common ■»'■**•••••••• •*• *« •* •*•*«» 1.882.857
1,80*4.71*4
1,774,713 .... 7f,i43
Total ••*•*»*,« »»*• 4 *.*•*•«,** 1,905.026 _. 1.828.759
1.799,948
76,267
Surplus •••••••*•*,...., *.**••,*•*
2,478,494
2**419,
*482
-3 2 , 0 0 1
2 .5 1 0 . ^ 9 5
Undivided profits, ,
. 1,068,755
9 6 1 ,7 9 0
1 ,0 0 9 , 3 6 5
59.390
Reserves
357.448
3 2 2 .2 6 9
325.119
2.850
Total surplus, profits, and
1*6
S • t
«•##
5,872,368
3,738,720
3.842.129
30,239
Total capital accounts •«•*••«• 5,777,394
5 .6 7 0 . 8 8 8
5.558,668
1 0 6 ,5 0 6
Total liabilities and capital accounts *«*«•,**.#.*.«• 8^,765,060
88.135.052
8 *+,927, 8 9 8 .- 3 .3 6 9 . 9 9 2
Ratios;
Percent
Percent
Percent
U.S.Govft securities to total assets
*40.80
3 9 .6 9
4 3 .5 1
Loans and discounts to total assets
27.06
2 5 .6 ;
Capita^ accounts
7 ^h 0
95
7M
Demand »**•••««»•••

*4.31_
- .1 3

mimm œmnvsm,

sslsa&b ,
fu— day, June 7. 1949,

fha Secretsry of the Treasury announced last evening that the tenders for
$900,000,000, or thereabouts, of 91-day Treasury hills to he dated June 9 and to nature
September 8, 1949, which were offered on June 5, were op— ed at tho Fodorai Reserre
on Juno 6,
The details of this issue are —

followst

Total applied for - $1,891,104,000
total accepted
904,884,000

Average prie#

(includes $42,858,000 antere* — a non­
competitive basis and accepted in full at
the average price shown below)
- 99,707/ avivaient rato of discount approx, 1.158$ per annua

Range of aoeepted competitive hides
R*8b
Low

~ 99,711 l^uival— t rate of discount approx. 1.143$ per annum
- 99.707
*
s a w
«
1,189$ *
"
(88 pereent of tho amount hid for at the low price was accepted)

Federal Reserve
District

Tota
fcppll.4 tor

Tota
Accepted

Boston
Kew York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louie
Minneapolis
Kansas City
Dai—
San Franeisoo

$

$ 12,036,000
*66,768,000
89,799,000
11,295,000
3,870,000
9,714,000
71,742,000
6,076,000
9,908,000
10,298,000
8,249,000
84.832,000 1

18,106,000
1,2a, 768, 000
47,107,000
19,918,000
3,870,000
11,291,000
130,278,000
7,416,000
10,412,000

11,302,000
13,418,000
78,382,000
t o m

# 1 ,e n , sat , 0 0 0

#§84, est,000

TREASURY DEPARTMENT
Information Service

WASHINGTON, D .C .

RELEASE, MORNING NEWSPAPERS,
Tuesday, June 7, 19^9-______

"

S-2013

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 June 9 and to mature September 8 , 1949* which were
offered on June 3, were opened at the Federal Reserve Banks on
June 6 .
The details of this issue are as follows:
Total applied for - $1,591*306,000
Total accepted
904,586,000 (includes $62,855*000
entered on a non­
competitive basis and
accepted in full at the
average price shown below)
Average price
- 99.707/ Equivalent rate of discount approx*
1 .158 $ per annum
R a n g e of a c c e p t e d c o m p e t i t i v e bids:

- 99*711 Equivalent rate
1.143$
- 99.707 Equivalent rate
1 .159 $

High
Low
(58

of discount approx
per annum
of discount approx
per annum

percent of the amount bid for at the low price was accepted)

Federal Reserve
District

Total
Applied for

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

7*416,000
10,412,000
1 1 ,3 8 2 , 0 0 0
13,415,000
7 8 ,3 5 2 , 0 0 0

$ 1 2 ,0 3 6 , 0 0 0
6 6 6 ,7 6 5 *000
39,799*000
1 1 *2 9 5 * 0 0 0
3 ,8 7 0 , 0 0 0
9 ,7 1 6 , 0 0 0
7 1 ,7 4 2 , 0 0 0
6 ,0 7 6 , 0 0 0
9 ,9 0 8 , 0 0 0
1 0 ,2 9 8 , 0 0 0
8 ,2 4 9 , 0 0 0
5 4 ,8 3 2 ,000

$ 1 ,,591,306,000

$904,586,000

$

TOTAL

Total
Accepted

1 6 ,1 0 6 , 0 0 0
1 ,2 4 1 ,7 6 2 , 0 0 0
4 7 ,1 0 7 , 0 0 0
1 9 *9 1 5 * 0 0 0
3 ,8 7 0 , 0 0 0
1 1 ,2 9 1 , 0 0 0
1 3 0 ,2 7 8 , 0 0 0

0O0

IMMEDIATE RELEASE
June 6, 1 9k9

The Bureau of Customs announced today that the Canadian quota of
3,815,000 pounds of wheat flour, semolina, crushed or cracked wheat,
and similar wheat products has been filled for the quota year ending
May 28, 1950.
Since not more than 795,000 bushels of Canadian wheat may be
entered for consumption in a quota year, the collectors of customs
have been instructed to limit acceptance of entries for consumption
to a total of U&fQ&Q bushels during any week at any port unless
authorization for/a greater amount is granted b y the Bureau.

/ 0 oo

IMMEDIATE RELEASE,
June 6, 19^9.______

S-2014

The Bureau of Customs announced today that
the Canadian quota of 3,815*000 pounds of wheat
flour, semolina, crushed or cracked wheat, and
similar wheat products has been filled for the
quota year ending May 28, 1950.
Since not more than 795,000 bushels of Canadian
wheat may be entered for consumption in a quota year,
the collectors of customs have been instructed to
limit acceptance of entries for consumption to
a total of 1,000 bushels during any week at any port
unless authorization for a greater amount is granted
by the Bureau.

oOo

STATUTORY DEBT LIMITATION
.. Section 21 of the Second Liberty Bond Act, as amended, provides that the face amount of obligation^ issued
under authority of that Act, and the face amount of obligations guaranteed as to principal and interest by the
United States (except such guaranteed obligations as may be held by the Secretary of the Treasury), '"shall not
exceed in the aggregate $275,000,000,000 outstanding at any one time.

For purposes of this section the current

redemption value of any obligation issued on a discount basis which is redeemable prior to maturity at the option
of the holder shall be considered as its face amount. ”
The following table shows the face amount of obligations outstanding and the face amount which can still be
issued under this limitation:
$275,000,000,000

Total face amount that may be outstanding at any cne tune
Outstanding

v

Obligations issued, under Second Liberty Bond Act, as amended
Interest-bearing:
Treasury bills.... .............. .
Certificates of indebtedness......
Treasury notes.... ................

«
®

11,51*4 ,396,000
28,710,247,000.
8.288,165.600

48,542,808,600

Bonds —

Treasury..................111,439,544,450
56,116,326,>195
Savings (current redemp,value)y
Depositary.... .
'4335.000
)6,024,475
Armed Forces Leave........
Investment series.........
954,155,000
Special Finds Certificates of indebtedness....

17 ,266,163,000

Treasury notes.......... ........

14.648.510.500

Total interest-bearing........ .
Matured, interest-ceased..............
Bearing no interest:
War savings stamps.................

169,270,385,420

31.914,473,500
249,727,*>b7,520
226,852,424

52,593.3*7
5,760,062

Excess profits tax refund bonds....
Special notes of the United States:
I n t e m a t ’l Bank for Reconst,
and Development series........
Internet'1 Monetary Flmd series..

40,785,000

1 . 063 . 000,000

Total............. ................ ..

1,162,138,409

251,11b,458,353

Guaranteed obligations (not held by Treasury):
Interest-bearing;
Debentures: F.H.A. ...........
Demand obligations: C.C.C. ........

12,028,986
7,500,440

19.529,*26

3.530.725

Matured, interest-ceased.... .............. .

23 ,060,151
Grand total outstanding........... *.............. *........
Balance face amount of obligations issuable under above authority.
Reconcilement with Statement of the Public Debt (Daily Statement of the United States Treasury,
Outstanding -

Bay 31. 19*9,

Jme

1, 1§^9)

^

Toted gross public debt.......................... .
Guaranteed obligations not owned by the Treasury...............
Total gross public debt and guaranteed obligations...... i..... ..
Deduct - other outstanding public debt obligations not subject to debt limitation.

J-

251,889,**20,012
23,060,151

251,912,4èü,A6;
772,761,659

ZO/J
y

STATUTORY DEH! .LIMITATION
AS OF MAY 31, 1949

June 8 , 1949

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), Mshall not
exceed in the aggregate $>275,000,000,000 outstanding at any one time. For purposes
of this sectibh the ciirrent redemption value of any obligation issued on a discount
basis which is redeemable prior to maturity at the option of the holder shall be
considered as its face amount*”
The following table shows the face amount of obligations outstanding and the
face amount which can still be issued under this limitation;
Total face amount that may be outstanding at any one time
$275,000,000,000
Outstanding
Obligations issued under Second Liberty Bond Act, as amended
Interest-bearing
Treasury bills«#,****«**.«*.««* $ 11,544,396,000
Certificates ofindebtedness*
28,710,247,000
'
Treasury notes**«***«*.**#* **
8*288*165,600 $ 48,542,808,600
Bonds
Treasury*« * • * J* •*•fill 111,439,544,450
Savings (currentredamp, value) 56,116,326,495
Depositary*.*.•••••*••••**
354,335,000
Armed Forces Leave***••««•
406,024,475
Investment s e r i e s * * * * * * * 954,155,000

169,270,385,420

Special Funds
Certificates of indebtedness 17,266,163,000
Treasury notes*•»•«••«••«•
14*648*310*500
Total interest— bearing**• * *.......... «•
Matured, interest—ceased* *. *......... .

31,914,473,500
249,727,667,520
226,852,424

Bearing no interest
War savings stamps••••«••••♦
52,593,347
Excess profits tax refund bonds
5,760,062
Special notes of the United States;
Internat*l Bank for Reconst« and
Development series*•
40,785,000
Internati Monetary Find series
1*063*000,000
Total#.... ........................ ,.........

1,162*138,409.
251,116,658,353

Quaranteed obligations (not held by Treasury);
Interest-bearing
Debentures; F©H*A« *••*••**
12,028,986
Demand obligations; C«C«C* •
____ 7,500,440

19,529,426

Matured, interest—ceased********.*••«••%••••*•

______ 3*530,725
23,060,151

Grand total outstanding*«•••••••• #.*.*•♦•**••••*♦•• o«**•••••*• « *•-*• • ,,?.51i:L39|718,
Balance face amount of obligations issuable under above authority*«*

23,8 6 0 *2 8 1 *496

Reconcilement with Statement of the Public Debt — May 31, 1949
(Daily Statement of the United States Treasury, June 1, 1949)
Outstanding
Total gross public debt«.****.♦*,♦..••• *.*,••«.*• •.•••*«**•••••••..... •*••
2 5 1 ,8 8 9 ,4 2 0 , 0 1 2
Guaranteed obligations not owned by the Treasury«.**>•••••••••«••**
23*060,151
Total gross public debt and guaranteed obligations«*«•*#*•••«••«•• 251,912,480,163
Peduct -* other outstanding public debt obligations not subject
to debt limitation.*«.#**.*» «** •« • • •••••.•»••.•••• •*»••••••’•♦* ••_____ 772,761,659
.
4
'
■
.
251 »139*718« 504
S-2015

SaR-fMMEDiATE RELEASE^
June ?. 19l*9____________

The Bureau of Customs announced today preliminary figures showing the
quantities of wheat ahd 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 Apff'il 29, 1943, for the 12 months commencing May 29, 1948, as follows:

Country
of
Origin

Wheat flour, semolina,
crushed or cracked
Wheat
y
: ‘
wheat, and similar
wheat products
Imports
Established :
Imports
Established :
S May 29, 1940,
Quota
jMay 29, 1948, to '
Quota
■ : to M W 2 8 , I9l
:M w 28. 19k9
(Pounds)
(Pounds)
(Bushels)
(Bushels)

Canada
795,000
—
China
—
Hungary
'—
Hong Kong
.Japan
100
United Kingdom
—
Australia
100
Germany
Syria
100
Hew Zealand
—
Chile
100
Netherlands
Argentina
2 ,0 0 0
Italy
100
Cuba
1 ,0 0 0
Prance
Greece
100
Mexi co
Panama
Uruguay
—
Poland and Danzig
—
Sweden
Yugoslavia
'Norway
—
Canary Islands
1 ,0 0 0
Rumania
Guat emala
100
1
00
3razil
Union of Soviet
Socialist Republics
1Q0
100
Belgium
800,000

3,815,000
24,000
13,000
13,000

539,801
-

8 ,0 0 0

75,000
-

—
—
—
—

-

1 ,0 0 0
5 ,0 0 0
5 ,0 0 0
1 ,0 0 0
1 ,0 0 0
1 ,0 0 0

14,000

2 1.

X
—
—
*
—
-

2 ,0 0 0
1 2 ,0 0 0
1 ,0 0 0
1 ,0 0 0
1 ,0 0 0 '
1 ,0 0 0
1 ,0 0 0
1 ,0 0 0
1 ,0 0 0
1 ,0 0 0
1 ,0 0 0
1 ,0 0 0

3 ,71*2 , 6 1 0

150
—
■—
—
—
—_
—
Ik

—
—
—
-*
11*3
661

—

-

—
—
—

*•
—
—
—

A

-

-

539,822

4,000,000

3 ,71*3,588

TREASURY DEPARTMENT
Washington
IMMEDIATE RELEASE
Wednesday. June 8 . 1949

.
S-2036

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,,1941, as modified by the Presidents proclamations of April 13, 1942,
and April 29, 1943, for the 12 months commencing May 29, 1948, as follows:

Country
of
Origin

•
•
: Wheat flour, semolina,
:
crushed or cracked
Wheat
:
wheat, and similar
:
wheat products
Imports
¡Established :
Imports
Established :
:May 29, 1948, to
Quota
:May 29, 1948, to:
Quota
: Mav 28. 1949
:Mav 28. 1949
(Pounds)
(Pounds)
(Bushels)
(Bushels)
6
•

795,000
Canada
China
—
Hungary
«Hong Kong
Japan
100
United Kingdom
Australia
100
Germany
100
Syria
New Zealand
44
Chile
100
Netherlands
2 ,0 0 0
Argentina
100
Italy
Cuba
1,000
France
Greece
100
Mexico
Panama
—
Uruguay
Poland and Danzig
Sweden
Yugoslavia
Norway
Canary Islands
1 ,0 0 0
Rumania
100
Guatemala
100
Brazil
Union of Soviet
Socialist Republics
100
100
Belgium
4*

44

339,801
-

800,000

2 4 ,0 0 0

13,000
13,000

•*
, -

8 ,0 0 0
7 5 ,0 0 0
1 ,0 0 0
5 ,0 0 0
5 ,0 0 0
1 ,0 0 0
1*000
1 ,0 0 0

—
44

3,742,610
160

14
**•

14
44

—

14,000

—
21

m
44

—
~

~

-

3,815,000

—
—

2 ,0 0 0
1 2 ,0 0 0
1 ,0 0 0
1 ,0 0 0
1 ,0 0 0
1 ,0 0 0
1 ,0 0 0
1 ,0 0 0
1 ,0 0 0
1 ,0 0 0
1 ,0 0 0
1 ,0 0 0
44

-

—
-

♦4
143
44

44
44
44

661
**
Ml
4«
44
*-*

-

539,822

-o 0 o~

4 ,0 0 0 , 0 0 0

3,743,588

TREASURY DEPARTMENT

J -

IMMEDIATE RELEASE,

$Lt>t7

June \9 19U9«
Kg

The Bureau of Customs announced today preliminary figures shouting the
imports for consumption of commodities within quota limitations provided
for under the General Agreements on Tariffs and Trade, from the beginning
of the quota periods to May 28, ±9k9, inclusive, as follows*.

---- — ------------------------ TETC----Commodity

Period and Quantity

of
Quantity

Imports a s of
May 28,

19k9

Whole milk, fresh or
sour ...... ...........

Calendar year

3,000,000

Gallon

670

Cream, fresh or sour ...

Calendar year

1,£00,000

Gallon

328

B u t t e r ........ ........

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 .......

(i)
26,881,369

Pound

First 6 months
Quota Filled

12 months from l £ 0 ,000,000
Sept. 15, 19U8 60,000,000

Pound
Pound

Quota Filled
Quota Filled

Calendar year

Pound

1,368,009

(1)

£,000,000

The proviso to Item 717(b) limits the
imports for consumption at the quota
rate to 13,UU0,68U pounds during the
first six months of the calendar year.

Due to a provision of the P residents proclamation No. 2769 of
January 30, 19U8, 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 £po®
other than Cuba, a record is maintained of imports from Cuba. 10,117,393
pounds of such Cuban tobacco were imported for consumption during the
period January 1 to May 28, 19U9, inclusive.____________ _________ _______ _—

TREASURY DEPARTMENT
Washington
IMMEDIATE RELEASE,
Wednesday« June 8 « 1949«

S*-2017

The Bureau of Customs announced today preliminary figures showing the
imports for consumption of commodities within quota limitations provided
for under the General Agreements on Tariffs and Trade, from the beginning
of the quota periods to May 28, 1949, inclusive, as follows:

Commodity

Unit
Imports as of
Period and Quantity
of
May 28,
________________ Quantity_______1949______

Whole milk, fresh or
sour *•**•**•**«•«#»»*

Calendar year

3*000,000

Gallon

670

Cream, fresh or sour*.••

Calendar year

1,500,000

Gallon

328

Butter *••••••.......... •

Quota ineffective for the
period April through October

Fish, fresh or frozen,
filleted, etc*, cod,
haddock, hake, pollock,
cusk, and rosefish**** Calendar year

a)
26,881,369

Pound

First 6 months
Quota filled

Quota filled
Quota filled
1,368,009

White or Irish
Potatoes:
(■»pvh'if*Tp H Sp p H ........
other* • •. ........♦

Sept. 15, 1948 60,000,000

Pound
Pound

Walnuts

Calendar year

Pound

1 2 months firom 1 5 0 ,0 0 0 , 0 0 0

(1 )

5*000,000

The proviso to Item 717(b) limits the
imports for consumption at the quota
rate to 1 3 ,4 4 0 , 6 8 4 pounds during the
first six months of the calendar year

Due to a provision of the Presidentas 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* 10,117,393
pounds of such Cuban tobacco were•imported for consumption during the
period January 1 to Mav 28« 1949« inclusive*
........
....

IMMEDIATE RELEASE,
June Y », 19U9»_____

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 I 9I46, from January 1, 19U9, to May 28, 19li9,
inclusive, as follows:

Products of the
Philippines

•
•
:
:
•
•
•
#

Buttons ............... ---

Established Quota
Quantity

8£0,000

Unit of
Quantity

Imports as of
May 28, 19l*9

Gross

199,965
21*0,580

Cigars ................ ....

200,000,000

Number

Coconut Oil ........... ---

1^8,000,000

Pound

Cordage ............... ---

6,000,000

»

R i c e ....... .......... ....

1 ,0140,000

«

-

1,9014*000,000

tt

1*98,969,707

6,£00,000

tt

22£,000

refined )
Sugars, r e f i n e d ) .... --Tobacco

37,563,657
6143,206

THËASURY DEPARTMENT
Washington
IMMEDIATE RELEASE,
Wednesday« June 8 « 1949»

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, 1949, to May 28, 1949,
inclusive, as follows:

Products of the
Philippines

m
0
#
0 Established Quota
0
Quantity
0
,0
-0
0
8 5 0 ,0 0 0

Unit of
Quantity

Gross

199,965
240,580

Cigars **•**••«'••*••• 0000

2 0 0 ,0 0 0 , 0 0 0

Number

Coconut Oil***•*••••

4 4 8 ,0 0 0 , 0 0 0

Pound

refined \
Sugar s, unr ef ined )

* *•-4P

Imports as of
May 28, 1949

37,563,657

6 ,0 0 0 , 0 0 0

it

1 ,0 4 0 , 0 0 0

ii

1 ,9 0 ^,0 0 0 , 0 0 0

it

498,9697707

6 ,5 0 0 , 0 0 0

it

2 2 5 ,0 0 0

6 4 3 ,2 0 6

COTTON WASTES
(In pounds)
COTTON CAR]) 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 3 3 - 1 / 3 percent of the quotas shall "be filled "by cotton wastes
other than comher 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 5 Total imports !Established!
33-1/3$
ofj
Sept.
20, 1948,
Country of Origin : TOTAL QUOTA t Sept. 20, 1948,1
£ toMay 28, 19k9 ‘Total Quota!toMay 28 jL 9 k 9 lJ
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

United Kingdom....
Canada.............
France......... .
British India.....
Netherlands.......
Switzerland.......
Belgium...........
J apan......... .
China.............
Egypt.............
Cuba ..............
Germany............
Italy.............

if

r

67,827

—
—
;
{

-

|

5,482,509 i

Totals

317,97U

Included in total imports, column 2.

-oOo-

h£

3.

1,441,152

21,8U5

21,8U5

228,302

j
j

75,807
— .
22,747
,14,796
12,853

•m
m

—
25,443
7,088
1,599,886

21,81*.!?

j

IMMEDIATE RELEASE
June %» 1949

ÔLO/Ÿ

- 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»w<I-^gf^ts amended, for the period September 20,
1948, to May 28,
1949>fare as follows:
COTTON (other than linters)
(In pounds)

Country of
Origin

Under 1-1/8” other
than rough or harsh
under 3/4n
Established Imports Sept,
20, 1948, to
Quota
May 28, 1949

Egypt and the
Anglo-Egyptian
Sudan W » .* ......
783> 816
Peru.............
'247 j952
British India.:.. 2 9003,483
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
H a i t i *.:
■2 3 7
Ecuador..:.......
9,333
Honduras.........
752
Paraguay...:...*:
871
C o l o m b i a . 124
Iraq.............
195
British’East"
Africa...........
2,240
Netherlands East
Indies...........
71,388
Barbados.........
Other British
West Indies l/...
21^321
Nigeria....:....
5,377
Other British
West Africa 2/...
16,004
Other French
Africa 3/........
689
Algeria and Tunisia
-

14,516,882

1-1/8” or more
but less than
1-11/16” ¿ J
Imports Sept.
20, 1948, to
day 28, 1949

Less than 3/4’
harsh or rough 5/
Imports Sept. 20,
1948, to
May 28, 1949

44,117,797
247,952
292,269

932,440

1*,933,123
4 6 0 ,040

606,183

1 8 ,694,821

283,349

6,216,733

45,6$6,420

18 ,694,821

1/ Other than Barbados, Bermuda, Jamaica, Trinidad,and Tobago.
5/ Other than Gold Coast and Nigeria.
3/ Other than Algeria, Tunisia, and Madagascar.
~U Established Quota - 45,656,420.
5/ Established Quota - 70,000,000.

IREASIRT DEPARTMENT
Washington
IMMEDIATE -RELEASE
Wednesday, June 8« 194-9

S-2019

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,
19-48, to May 28, 1949, inclusive, are as follows:
COTTON (other than linters)
(In pounds)
•
•

Under l~l/8n other
than rough or harsh
under 3/4H
:
Established:Imports Sept*
:
Quota
:20, 1948, to
:
:May 28, 1949
0.
0

Country of
Origin

Egypt and the
Anglo-Egyptian
Sudan»
Peru«•«•*•••••••••••»
British India*•*•••••
China*»**«»•••*•»••»*
Mexico,•»,.»•, »••*••«
Brazil» •••. • .... ..
Union of Soviet
Socialist Republics••
Argentina*..... ..
Haiti*»•»«»••.••••••»
Ecuador *•».•••••«,•••
Honduras••••»•••••••*
Paraguay «»»•••»»••••»
Colombia*.»•»•••«•••»
British East Africa,•
Netherlands East
Indies *»*»»«**•«»••••
Barbados••»•»•«•«••»•
Other British West
Indies 1j *•«•••••••••
Nigeria «»,»»•••••••,*
Other British West
Africa 2/«»•••»••«.•*»
Other French Africa*.#
Algeria and Tunisia**

783,816
247,952
2,003,483
1,370,791
8,883,259
618,723
475,124
5,203
237
9,333
752
871
124
195
2,240

r*

4,933,123
460,040
283,349

sl-l/S11 orinora t Less than 3/4M
:but less than:harsh or rough 5/
s1-11/16" k j :
:Imports Sept*: Imports Sept* 20,
:20, 1948, to : 1948, to May 28,
1949
:May 28* 1949 :

44,117,797
932,440

**

«
18,694,821

«
606,183

0*0

0f0

0*0

0*0

/

71,388

21,321
5,377
16,004
689

14,516,882
l/
2/
3/
4/
5/

247,952
292,269

\

6,216,733

45,656,420

Other than Barbados, Bermuda, Jamaica, Trinidad, and Tobago»
Other than Gold Coast and Nigeria*.
Other than Algeria, Tunisia, and Madagascar*.
Established Quota - 45,656,420*.
Established Quota — 70,000,000*.

«:'
18,694,821

I

~ 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
CR NOT MANUFACTURED CR 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 ¡Total imports¡Established :
Imports
Country of Origin : TOTAL QUOTA ¡Sept* 20, 1948, : 33-1/3# of ¡Sept* 20, 1948
¡to May 28, 1949 ¡Total Quota ¡to May 28,1949 1/
United Kingdom*•••••*
Canada*
France*..*..
British India****.. .*
Netherlands * ****....
Switzerland*•••••*.••
Belgium*..........
Japan* *.•••.«•••*•*•*
China*...............
Egypt*.•*;**•........
Cuba*.......... .
Germany*••••••.••••**

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

21,845
228,302

Totals*•*••••••••

5,482,509

317,974

67,827
—

1,441,152
75,807
—
22,747
14,796
12,853

21,845

—
«
■
N

urn

—

—
IN

—
«N
I

1/ Included in total imports, column 2*

— oOo—

•«#
—
25,443
_______ 7.088 ...
1,599,886

■
—

21,845

TREASURY DEPARTMENT
Washington

Press Service
No* S-2020

FOR RELEASE
Friday, June 17, 1949

Secretary of the Treasury Snyder today made public data from the
report. Statistics of Income for 1945, Part 1, compiled from individual
income tax returns and from taxable fiduciary income tax returns for
1945, under the direction of Commissioner of Internal Revenue George J 0
Schoenema&o
INDIVIDUAL RETURNS
The total number of individual income tax returns filed for the
income year 1945 is 49,932,783, an increase of 2,821,288 returns, or
6o0 percent, over the number filed for the previous year 0 The current
year returns consist of 20,869,431 optional returns. Form W-2, the
withholding receipt for tax withheld on wagesj 19,206,483 short-form
returns, Form 1040s and 9,856,869 long-form returns, Form 10400 The
optional standard deduction is used on 41,454,193 returns, or 83o0
percent of the total number of returns filed,.
There are 42,650,502 taxable returns, an increase of 296,034 re­
turns, or 0 o7 percent, as compared with the number of taxable returns
for 19440 Nontaxable returns for 1945 number 7,282,281, an increase
of 2,525,254, or 5 3 d percent, over the number of nontaxable returns
for the previous year 0
Adjusted .gross income of $120,301,131,000 is shown on 49,750,991
returns«, The adjusted gross income increased $3,586,394,000, or 3ol
percent, over that of last year 0 Adjusted gross deficit is $292,472,000
shown on 181,792 returns© The adjusted gross deficit increased
$42,701,000, or 17 ©1 percent, as compared with that reported last year©
The tax liability for 1945 is $17,050,378,000, an increase of
$833,977,000, or 5©1 percent, as compared with that reported for 1944©
The number of returns, amount of adjusted*gross income or deficit,
and tax liability for 1945 and 1944, together with the amount and per­
centage of increase, are as followsg

- 2 Comparative data* individuai returns, 1945 and 1944
(Money figures in thousands of dollars)

0
0

8Increase or

0

0
1945

xvx-x.

s decrease (-)

8Number or? Percent

0
amount
%
•
Total individual returns 2
49,932,783 47,111,495 2,821,288
Number of returns
116,714,736 3,586,394
120,301,131
Adjusted gross income
42,701
249,771
292,472
Adjusted gross deficit
Taxable returns *
296,034
42,650,502 42,354,468
Number of returns
2,800,276
114,761,385
117,561,661
Adjusted gross income
833,977
17,050,378 16,216,401
Tax liability
Nontaxable returns %
Number of returns with
4,565,122 2,535,367
7,100,489
adjusted gross income
786,118
1,953,351
2,739,470
Adjusted gross income
Number of returns with no
»10,113
191,905
181,792
adjusted gross income
42,701
249,771
292,472
Adjusted gross deficit

60O
3 »1
17 «1

Oof
2 »4
5 91

55»5
40»2
-5o3
17 »1

Returns included
The individual income tax returns included in this release are
for the calendar year 1945, a fiscal year ending within the period
July 1945 through June 1946, and a part year with the greater part
of the accounting period in 1945» The returns include Forms K-2 and
1040 filed by citizens and resident aliens and Form 1040B filed by
nonresident aliens having a business within the United States» Ten»
tative returns are not included and amended returns are used only if
the original returns are excluded» Statistics are taken from the re­
turns as filed, prior to revisions that may be made as a result of
audit»
Form W»2, the withholding receipt for income tax withheld on
wages, is the optional return which may be filed by persons whose
total income is less than $5,000 consisting of wages shown thereon
and not more than $100 of other wages, dividends, and interest» The
tax liability is determined by the collector of internal revenue on
the basis of the income reported, in accordance with a tax table pro»
vided under Supplement T of the Internal Revenue Code, which allows
for exemptions claimed by the taxpayer and also allows for deductions
and tax credits approximating 10 percent of the income0 Husband and
wife may file a combined return on Form W»2 if their aggregate income
meets the requirements for use of this form» On such combined returns
the tax as determined by the collector is the lesser of two amounts 2
the tax on the combined income or the aggregate tax on the separate in
comes o

- 5 Form 1040# the regular inoome tax return# which may be either
a long-form return or a short-form return, is used by persons who,
by reason of the sise or source of their income. ^ « ^ P e r m i t t e d
to use Form W-2 as a return, and by persons who, although eligible
to use Form W-2, find it to their advantage to use Form 1040 . Per­
sons with adjusted gross inoome of less than *5,000, rega
the source, may elect to file the short-form return on
de­
ductions and tax credits are not itemised, the tax being determine
bv the taxpayer from the tax table provided under Supplement T.
persons with adjusted gross income of * 6.000 or more and persons
with adjusted gross income of less than * 5,000 who wish to claim
deductions in excess of the amount allowed through the use of the
tax table file the long-form return and compute the tax liaDiircyo
Data for the returns with adjusted gross income under $25,000,
except number of returns, and their distribution by adjusted gross
income classes are estimated on the basis of samples as explained
on pages 5 and 6 0
Changes in the Internal Revenue Code
The individual Income Tax Act of 1944 provides new rates and
wage bracket withholding tables for the withholding of tax at source
on^wages paid on or after January 1, 1945c Although there is no
change in the income tax rates, the new withholding rates and tables
more nearly approximate the income tax liability, especially on
small incomes, than did those formerly in usec
The Revenue Act of 1945 provides that a fiscal year taxpayer
whose taxable year begins in 1945 and ends in 1946 is subject to
the law applicable to taxable years beginning on January 1, 194b,
as well as the law applicable to taxable years beginning on
Januarv 1 1946» A tentative tax is computed under each law$ and.
each tentative tax is prorated on the basis of the number of days
in such fiscal year before January 1, 1946, and after December 31,
1945, respectively0 The tax liability is then determined by com­
bining the prorated portions of the two tentative taxes 0
Classification of returns
For the tables in this release, individual returns are classi­
fied as taxable and nontaxable returns, as returns with standard
deduction or with itemised deductions, by adjusted gross income
classes, and by States and Territories. Taxable returns are class!
fied as to normal tax and surtax versus alternative tax.

- 4 Adjusted gross income, being common to all types of returns,
supplies the base for adjusted gross income classes regardless of
the amount of net income or net deficit -when computed<, Returns
showing .allowable deductions for the computation of adjusted gross
income in excess of gross income - that is, returns with adjusted
gross deficit - are designated HNo adjusted gross income,w and the
size of the deficit is disregarded0
Returns with standard deduction are optional returns, Form Vi-2?
short-form returns, Form 1040, with adjusted gross income ? and longform returns, Form 1040, with adjusted gross income of $5,000 or
over on which the $500 standard deduction is used«
Returns with itemized deductions are long-form returns, Form 1040,
on which deductions are itemized in detail? long-form returns,
Form 1040, with no deductions, filed by spouses of taxpayers who item­
ized deductions (such spouses are denied the standard Reduction )% and
returns, Form 1040, with no adjusted gross income whether or not de­
ductions are itemized*
The classification of returns as taxable and nontaxable is
based on the existence or nonexistence of a tax liability0
Returns with normal tax and surtax are optional returns, Form W-2,
and short-form returns*, Form 1040, wherein the optional tax is paid
in lieu of normal tax and surtax? and long-form returns, Form 1040,
on which the regular normal tax and surtax, or normal tax only, are
reported - that is, all taxable long-form returns except those on
which the alternative tax is imposed*
Returns with alternative tax are long-form returns, Form 1040,
wherein the net income includes an excess of net long-term capital
gain over net short-term capital loss, and the alternative tax is
less than the regular normal tax and surtax computed on net income
which includes net gain from sales of capital assets0 Alternative
tax (not effective on returns with surtax net income under $16,000)
is the sum of a partial tax computed at the regular normal tax and
surtax rates on net income reduced for this purpose by the excess
of net long-term capital gain over net short-term capital loss, and
fifty percent of such excess*
The classification of returns by States and Territories is
based on the location of the collection district in which the return
was filed, except that for the District of Columbia, which comprises
a part of the collection district of Maryland, the classification is

- 5 determined by the address of the taxpayer® The Territory of Alaska
comprises a part of the collection district of Washington? however,
the sampling technique employed does not permit separate tabulation
of returns showing an Alaskan address o'
Description of the sample and limitations of data
Tables 1 to 4, inclusive, in this report were derived from a
basic stratified random sample of individual income tax returns de­
signed to comprise 1 percent of returns, Form W-2 and Form*1040,
with adjusted gross income under $7,000? 10 percent of returns,
Form 1040, with adjusted gross income from $7,000 to $10,000? 20
percent of returns, Form 1040, with adjusted gross income from
$10,000 to $25,000? and 100 percent of returns, Form 1040, with
adjusted gross income of $25,000 or more<> The different admini­
strative processes applied to the various categories of returns in
collectors'1 offices affected somewhat their availability for sampl­
ing® These categories were sufficiently heterogeneous with respect
to data tabulated to warrant independent controls® Accordingly,
returns in each of the above income ranges were further stratified
to assure homogeneous groups subject to uniform administrative proc­
essing for sample selection, tabulation, and weighting purposeso
Precise 1 percent, 10 percent, and 20 percent representation of re­
turns with adjusted gross income under $7,000, from $7,000 to
$10,000, and from $10,000 to $25,000, respectively, was not achieved®
However, the over-all universes, applicable to the separate sampling
strata, were independently determined and the data tabulated from
the samples were extended to such universes, so that no random sampl­
ing error attaches to the total number of returns in each income
rangeo A relatively negligible error in the total number of returns
does result, however, from the use of rounded extension factors®
For table 5 in this report, which shows the total number of re­
turns and the amounts of salaries and wages, dividends and interest,
adjusted gross income, and tax liability for returns with adjusted
gross income by States, supplementary random samples were added to
the basic sample described above where the basic sample was not
sufficiently large to assure reliable State data® The degrees of
supplementation varied by'States, and data for each State were sepa­
rately tabulated and extended to the proper universe® Returns with
no adjusted gross income are not distributed by States because of
the large sampling errors involved®
In view of the different samples used for the distributions on
a national basis and for the State distributions, the aggregate data
relative to returns with adjusted gross income by States in table 5
do not precisely agree with corresponding United States totals in
tables 1 and 2® Apart from the sampling error involved, the difference

6
between the number of returns with adjusted gross income for the
United States in tables 1 and 2 and the corresponding aggregate of
State frequencies is due in part to the use of rounded ratios in
extending the data from samples of returns with adjusted gross in«
come under $25,000 to the universes0
In computing the possible variation of a given frequency due
to random sampling* a range of two standard errors was usedj chances
are 19 out of 20 that the frequency as estimated from the sample
tabulation differs from the actual frequency, if the entire universe
were tabulated, by less than twice the standard error 0 Variation
beyond the 2 -error limit would occur only 1 time in 20 and would be
sufficiently rare to justify a 2 -error range in defining sampling
variability0 Accordingly, in cells associated with taxable or nontaxable adjusted gross income classes under $7,000, frequencies of
the magnitude of 1 million or more are subject to variation of less
than 3 percents variation for lesser frequencies increases to a
maximum of 10 percent at 100,000, and a maximum of 30 percent at
10,000o
In cells associated with adjusted gross income classes from
$7,000 to $25,000, frequencies of magnitude of 100,000 or more are
subject to less than 2 05 percent variations variation for lesser
frequencies increases to a maximum of 10 percent at 10,000 and a
maximum of 26 percent at 1,000» The degrees of variability noted
above relate only to cell frequencies and do not indicate the varia­
bility associated with money amounts of income, deductions, or tax»
TAXABLE FIDUCIARY RETURNS
There are 113,560 taxable fiduciary income tax returns, Form 1041,
for the income year 1945, showing net income taxable to the fiduciary
of $478,495,000 and tax liability (before credits) of $176,086,000»
As compared with similar data for the previous year, there is an in­
crease in number of returns of 21,191, or 22 »9 percents end increase
in net income of $121,478,000, or 34»0 percents and an increase in
tax liability of $45,008,000, or 34„3 percent»

Comparative data» taxable fiduciary returns» 1945 and 1944
________ (Money figures in thousands of dollars)____ _____
—
:
j
*
Increase
* 1945 s 1944 *Number or*
Percent
*amount
*
o
8
Number of returns
Total income
Net income taxable to the
fiduciary
Tax liability (before credits)

113*560 92,369
856,594 655,623

21,191
200,971

22 ®9
30®7

478,495 357,017
176,086 131,078

121,478
45,008

34 ®0
34®3

Only the taxable fiduciary returns are included in Statistics
of Incomeo These returns are for the calendar year 1945» a fiscal
year ending within the period July 1945 through June 1946» and a
part year with the greater portion of the accounting period in 1945®
A negligible number of taxable returns for estates and trusts filed
improperly on Form 1040 are included; the data thereon being edited
to conform to that reported on Form 1041« Tentative returns are not
included and amended returns are used only if the original returns
are excluded® Statistical data are completely tabulated from each
taxable fiduciary return, prior to audit®
A fiduciary return» Form 1041, is required for an estate if the
gross income is $500 or more; for a trust if the net income is $100
or more, or if the gross income is $500 or more regardless of the
net income; and for every estate or trust of which any beneficiary
is a nonresident alien®
The rates of tax, the provisions respecting income to be re­
ported, and the tax credits provided for individuals apply also to
estates and trust® The net income of an estate or trust is com­
puted in the same manner as in the case of an individual, except
that, in lieu of the deduction allowed an individual for contribu­
tions to charitable, religious, scientific, and educational organi­
zations, there is allowed as a deduction, without limitation, any
part of the gross income which is set aside for such purposes ex­
clusively; and there is also a deduction for the amount of income
which is distributed, or becomes payable, to beneficiaries as well
as amounts which in the discretion of the fiduciary may be distri­
buted or accumulated, if such amounts aré reported in the income
of the beneficiary«.

- 8 An estate is allowed a normal tax exemption of $500 and a sur­
tax exemption of $500; a trust is allowed a credit of $100 against
net income for the purposes of both normal tax and surtax.
The tax, based on net income taxable to the fiduciary, is due
when the return is filed, inasmuch as the tax is not subject to
current collection.
Table 6 of this release shows the income and loss from each
of the sources comprising total income, total income, deductions, surtax
exemption, net income, and tax liability reported on the taxable
fiduciary returns. These data are distributed by total income
classes. Total income is approximately equivalent to the adjusted
gross income used for the classification of individual returns.

Table 1« — In d ividual returns fo r 1946# by adjusted gross income olassess Simple and cumulative d istrib u tio n s of number o f returns#
adjusted gross inooms# and tax lia b ilit y # w ith corresponding percentage d istrib u tio n s
Number o f returns
Cumulative d i s t r i - Cumulative d i s t r i Simple d istr ib u tio n bution fron h ighest bution from lowest
Adjusted gross inorate c la sse s 1/
inooms c la s s
income o lass
Percent
Percent
Percent
of
of
Number
Number
Number o f
to tal
t o ta l
to ta l

1

2

S
4

6
6
7
8
9

10

11
12

IS
14
IS
16
17
18
19

20
21
22
28
24

25
26

27
28
29
SO

SI

32
S3
54
36

86

S7
58
59
40
41
42
48
44
46
46
47
48
49
60
61
62

In d iv id u a l returns (taxable and
nontaxable) w ith adjusted gross
inoomsi
Under 0.5
0.5 under 0.75
0.76 under 1
1 under 1.26
1.26 under 1.5 4/
1.5 under 1;75
1.75 under 2
2 under 2.26
2.25 under 2.5
2.5 under 2.76
2.75 under 3
5 under 5.5
8.6 under 4
4 under 4.5
4.5 under 5
6 under 6
6 under 7
7 under 8
8 under 9
9 under 10
10 under I I
11 under 12
12 under IS
13 under 14
14 under 16
16 under 20
20 under 25
25 under SO
SO under 40
40 under 50
50 under 60
60 under 70
70 under 80
80 under 90
90 under 100
100 under 150
150 under 200
200 under 250
260 under 500
500 under 400
400 under 500
500 under 750
750 under 1,Q00
1.000 under 1#500
1,500 under 2,000
2.000 under 3,000
8.000 under 4,000
4.000 under 5,000
6.000 and over
Total
In d ivid u al returns (nontaxable)
w ith no adjusted gross income 6/
Grand t o t a l

6,462,051
8,088,490
3,124,651
8,583,559
5,755,565
5,602,265
8,575,466
8,508,650
8,059,531
2,767,982
2,484,187
4,024,307
2,713,135
1,629,488
983,837
889,652
480,765
252,895
177,315
134,856
104,454
80,430
66,519
66,891
46,052
155,308
88,229
45,966
49,771
24,483
18,418
8,441
5,448
8,601
2,687
5,530
1,726
758
407
833
195
198
65
59
19
7
2
8
1

10.96
6.21
6.28
7.20
7.51
7.24
7.18
6.65
6.11
5.56
4.99
8.09
5.45
3.28
1.98
1.79
.87
.51
.86
.27
.21
.16
.15
.11
.09
.31
.17
.09
.10
.05
.05
.02
.01
.01
.01
.01
(6)
(6)
(6)
(6)
(6)
(6)
(6)
(6)
(6)
(6)
(6)
(6)
(6)

49,750,991

49,760,991
44,298,940
41,210,450
58,085,799
54,502,240
50,766,675
27,164,410
25,590,944
20,282,294
17,242,763
14,474,781
11,990,594
7,966,287
5,255,152
5,623,664
2,640,327
1,750,675
1,519,922
1,067,027
889,712
754,856
650,402
569,972
508,455
447,562
401,610
246,202
162,973
117,007
67,256
42,753
29,335
20,894
15,446
11,845
9,258
3,728
2,002
1,264
857
524
829
136
71
32
IS
6
4
1

100.00 5,452,051
10.96
89.04 8,540,641
17.17
82.83 11,665,192
23.45
76.56 15,248,751
50.65
69.55 18,984,516
38.16
61.84 22,686,581
45.40
54.60 26,160,047
52.58
47.42 29,468,697
59.28
40.77 52,508,228
65.34
34.66 55,276,210
70.91
29.09 37,760,597
75.90
24.10 41,784,704
83.99
16.01 44,497,859
89.44
10.56 46,127,527
92.72
7.28 47,110,664
94.69
5.31 48,000,316
96.48
8.52 48,431,069
97.35
2.65 48,683,964
97.86
2.14 48,861,279
98.21
1.79 48,996,155
98.48
1.52 49,100,589
98.69
1.51 49,181,019
98.85
1.15 49,247,558
98.99
1.01 49,303,429
99.10
.90 49,349,481
99.19
.81 49,604,789
99.50
.49 49,588,018
99.67
.53 49,635,984
99.76
.24 49,685,756
99.86
.14 49,708,238
99.91
.09 49,721,656
99.94
.06 49,730,097
99.96
.04 49,738,545
99.97
.03 49,759,146
99.98
.02 49,741,753
99.98
.02 49,747,265
99.99
.01 49,748,989
99.99
(6) 49,749,727
99.99
(6) 49,750,134
99.99
(6) - 49,750,467
99.99
99.99
(6) 49,750,662
99.99
(6) 49,750,855
(6) 49,750,920
99.99
(6) 49,750,959
99.99
99.99
(6) 49,750,978
(6) 49,750,985
99.99
99.99
(6) 49,750,987
49,750,990
99.99
(6)
(6) 49,750,991 100.00

100.00

-

181,792

(7)

-

-

49,982.788

(7)

-

-

-

fo o tn o tes, see pp. 21-22J fo r extent to which data are e s t im te d , see p p. 5-6.

-

M Justed gross income 2/
tax l i a b i l i t y fc/
Cumulative d i s t r i Cumulative d i s t r i Cumulative d i s t r i - Cumulative d i s t r i bution from highest bution from lowest Simple d istr ib u tio n bution from highest bution from lowest
income olass
income cla ss
income olass
income c la ss
Peroent
Peroent
Percent
Peroent
Peroent
Peroent
of
of
of
of
Amount
Amount
of
Amount
of
Amount
Amount
to ta l
to tal
t o ta l
to ta l
t o ta l
to tal

Simple d istr ib u tio n
Amount

1,498,401
1,922,087
2,738,891
4,035,572
5,178,417
5,845,469
6,692,418
7,022,363
7,213,675
7,261,329
7,133,274
13,017,492
10,125,025
6,892,942
4,649,038
4,826,976
2,779,454
1,888,235
1,501,203
1,277,588
1,094,124
925,312
829,486
755,545
666,679
2,668,955
1,853,715
1,254,327
1,708,973
1,089,366
731,520
644,726
406,852
304,660
245,041
661,464
295,289
163,463
110,845
115,685
86,447
114,603
55,141
46,214
31,910
16,806
7,042
15,796
7,617

1.25
1.60
2.28
3.85
4.80
4.86
5.56
5.84
6.00
6.04
5.95
10.82
8.42
6.73
3.86
4.01
2.51
1.67
1.25
1.06
.91
.77
.69
.63
.55
2.22
1.54
1.04
1.42
.91
.61
.45
.34
.25
.20
.55
.25
.14
.09
.10
.07
.10
.05
.04
.03
.01
.01
.01
.01

-

120,801,131

-

8/292,472
9/120,008,659

(7)

120,301,131
118,802,730
116,880,643
114,141,752
110,106,180
104,927,763
99,082,294
92,389,876
85,567,513
78,153,858
70,892,509
63,759,235
50,741,743
40,616,718
33,723,776
29,074,738
24,247,762
21,468,328
19,580,093
18,078,890
16,801,502
15,707,378
14,784,066
13,954,580
13,201,035
12,534,556
9,865,401
8,011,686
6,757,569
5,048,386
3,959,020
3,227,500
2,682,774
2,275,922
1,971,262
1,726,221
1,064,757
769,468
606,005
495,160
379,575
293,128
178,525
123,384
77,170
45,260
28,454
21,412
7,617

100.00
98.75
97.16
94.88
91.55
87.22
82.36
76,80
70.96
64.97
58.93
53.00
42.18
33.76
28.08
24.17
20.16
17.85
16.28
15.05
13.97
18.06
12.29
11.60
10.97
10.42
8.20
6.66
5.62
4.20
3.29
2.68
2.25
1.89
1.64
1.43
.89
.64
.50
.41
.52
.24
.15
.10
.06
.04
.02
.02
.01

100.00

-

-

-

-

(T)

-

-

-

-

1,498,401
1.25
3,420,488
2.84
6,159,379
5.12
8.47
10,194,951
15,373,368
12.78
21,218,837
17.64
27,911,256
23.20
54,933,618
29.04
42,147,293
35.03
41.07
49,408,622
56,541,896
47.00
69,559,388
57.82
79,684,413
66.24
71.97
86,577,355
91,226,393
75.83
96,053,369
79.84
98,832,803
82.15
83.72
100,721,038
84.97
102,222,241
103,499,629
86.03
104,593,763
86.94
105,517,065
87.71
88.40
106,546,551
107,100,096
89.05
107,766,775
89.58
110,435,730
91.80
112,289,445
93.54
113,543,772
94.38
115,252,745
95.80
96.71
116,342,111
117,073,631
97.32
117,618,357
97.77
118,025,209
98.11
118,329,869
98.36
118,574,910
98.57
119,236,374
99.11
119,531,663
99.36
119,695,126
99.50
119,805,971
99.59
119,921,656
99.68
99.76
120,008,003
120,122,606
99.85
120,177,747
99.90
120,223,961
99.94
120,255,871
99.96
120,272,677
99.98
120,279,719
99.98
120,293,514
99.99
120,301,181 100.00

27,582
110,823
221,201
354,715
472,301
599,429
658,934
686,008
707,912
716,950
1,391,200
1,178,294
871,803
635,796
727,208
473,245
351,156
298,374
269,586
242,705
214,678
201,619
190,740
175,651
775,181
619,816
466,851
706,167
496,611
356,878
279,443
216,513
166,809
137,655
587,962
180,528
101,678
68,097
72,065
51,552
72,902
37,060
27,918
22,267
10,053
4,584
10,277
4.801

.16
.65
1.30
2.08
2.77
3.52
3.86
4.02
4.15
4.20
8.16
6.91
5.11
3.73
4.27
2.78
2.06
1.75
1.58
1.42
1.26
1.18
1.12
1.03
4.55
3.64
2.74
4.14
2.91
2.09
1.64
1.27
.98
.81
2.28
1.06
.60
.40
.42
.30
.43
.22
.16
.18
.06
.03
.06
.03

17,050,378
17,022,796
16,911,973
16,690,772
16,336,067
16,863,756
15,264,327
14,605,393
13,919,385
13,211,473
12,494,523
11,103,323
9,925,029
9,053,226
8,417,430
7,690,222
7,216,977
6,865,821
6,567,447
6,297,861
6,065,156
5,840,478
5,638,859
5,448,119
5,272,468
4,497,287
3,877,471
3,410,620
2,704,453
2,207,842
1,851,964
1,572,521
1,356,008
1,189,199
1,051,544
663,582
483,254
381,576
313,479
241,414
189,862
116,960
79,900
51,982
29,715
19,662
15,078
4,801

100.00
99.84
99.19
97.89
95.81
93.04
89.52
85.66
81.64
77.48
73.28
65.12
58.21
53.10
49.37
45.10
42.38
40.27
88.52
36.94
35.51
34.25
38.07
31.95
30.92
26.38
22.74
20.00
15.86
12.95
10.86
9.22
7.95
6.97
6.17
3.89
2.83
2.24
1.84
1.42
1.11
.69
.47
.30
.17
.12
.09
.03

17,050,378

100.00

•

-

-

-

-

-

-

17,060,378

1

2

27,582
.16
138,406
.81
359,606
2.11
714,321
4.19
1,186,622
6.96
1,786,061
10.48
2,444,985
14.34
3,130,993
18,36
3,838,905
22.52
26.72
4,555,855
5,947,056
84.88
7,125,349
41.79
46.90
7,997,152
8,632,948
50.63
9,360,156
54.90
9,833,401
67.67
10,184,657
59.73
10,482,931
61.48
10,752,617
63.06
10,995,222
64.49
11,209,900
65.75
11,411,519
66.98
11,602,259
68.06
11,777,910
69.08
12,568,091
73.62
15,172,907
77.26
80.00
13,639,758
14,345,925
84.14
14,842,536
87.05
15,198,414
89.14
16,477,857
90.78
15,694,870
92.05
15,861,179
93.08
15,998,884
93.88
16,386,796
96.11
97.17
16,567,124
16,668,802
97.76
16,736,899
98.16
16,808,964
98.58
16,860,516
98.89
16,933,418
99.81
16,970,478
99.58
99.70
16,998,896
17,020,668
99.83
99.88
17,030,716
17,056,300
99.91
17,045,577
99.97
17,060,378 100.00

36
S7
58
59
40
41
42
43
44
46
46
47
48
49

•

-

60

-

-

-

51

.

.

-

52

3
4
6

6
8
7
9
10

11
12

IS
14
15
16
17
18
19
20

21
22
25
24
26
26
27
28
29
SO

31

82
SS
54

86

Table 2 . - Individual returns for 1945, by taxable and nontaxable returns and by adjusted gross income classes - Part I, all returns; Part II, returns with standard
deduction; Part III, returns with itemised deductions: Humber of returns, income or loss from each of the sources comprising adjusted gross income, adjusted gross
income, deductions, surtax exemption, tax liability, tax payments, and tax overpayment

PART I . - ALL RETURNS

A dju sted gro ss Income c la s s e s 1 /

1
2

s
4
S

6
7
8
9

10

11
12

13
14
15
16
17
18
19

20
21
22
23
24
25
26
27
28
29
30
31

«2
35
54
35
36
37
38
39
40
41
42
45
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59

Taxable in d iv id u a l r e tu r n s:
0 .5 under 0.75
0 .7 5 under 1
1 under 1.2 5
1.2 5 under 1 .5
1 .5 under 1.7 5
1.7 5 under 2
2 under 2.25
2.25 under 2.5
2 .5 under 2.75
2.7 5 under 3
3 under 3 .5
5 .5 under 4
4 under 4 .5
4 .5 under 5
5 under 6
6 under 7
7 under 8
8 under 9
9 under 10
10 under 11
11 under 12
12 under 13
I S under 14
14 under 15
15 under 20
20 under 25
25 under 30
50 under 40
40 under 50
50 under 60
60 under 70
70 under 80
80 under 90
90 under 100
100 under 150
150 under 200
200 under 250
250 under 300
300 under 400
400 under 500
500 under 750
750 under 1,000
1.000 under 1,500
1,500 under 2,000
2.000 under 3,000
3.000 under 4,000
4.000 under 5,000
5.000 and over

2,024,406
2,818,413
3,398,136
3,642,872
3,602,265
5,573,466
5,306,650
3,039,531
2,767,982
2,484,187
4,024,307
2,713,135
1,629,488
983,337
889,652
430,753
252,895
177,315
154,856
104,454
80,430
66,519
55,891
46,052
155,308
83,229
45,966
49,771
24,483
13,418
8,441
5,448
3,601
2,587
5,530
1,726
738
407
333
195
193
65
39
19
7

2
3
____ 1

T o ta l, ta x a b le in d iv id u a l returns
Nontaxable in d iv id u a l r e tu r n s :
No adjusted gross income 5 /
Under 0 .5
0 .5 under 0.75
0.7 5 under 1
1 under 1.25
1.2 5 and over

(Adjusted gross Income classes and money figures in thousands of dollars)
T o ta l
Business and
Rents and
number
Salaries
A n n u itie s
profession 14/
r o y a lt ie s 15/
Dividends
and inand pen­
and
of
Net p r o f i t Net loss Net profit Net loss
retu rn s
wages 10/ tere8t 11/ sio n s 12/

1,098,158
2,060,255
3,256,289
4,529,335
5,107,645
5,913,790
6,246,287
6,444,530
6,505,425
6,381,127
11,647,774
8,972,765
5,923,242
3,753,518
3,396,406
1,621,064
895,669
646,601
507,860
431,315
327,534
301,593
252,728
211,101

854,804
564,235
371,384
470,154
275,741
176,973
123,293
82,789
61,727
45,652
108,853
39,944
18,484
11,648
9,788
5,438
6,519
1,026
834
697
153
65

1
2

25,708
49,696
57,041
63,478
69,692
71,382
73,960
73,976
63,446
74,740
133,432
116,273
90,289
87,982
167,999
139,091
119,973
103,142
95,707
85,186
77,898
71,559
66,884
63,498
263,075
200,835
146,325
214,283
151,474
111,128
87,890
69,784
56,930
46,802
141,410
68,736
41,581
30,491
31,031
22,840
36,969
21,507
15,826
10,900
5,734

6,350
7,118
15,746
14,562
13,046
9,891
9,267
6,957
7,719
9,042
11,925
10,714
7,611
3,757
6,420
5,896
3.674
2,384
2.674
2,436

28,944
48.308
53,049
64,984
66,217
62.308
64,108
63,858
64,100
62,503
113,734
94,402
67,488
63,936
88,767
68,273
53,969
42,234
37,514

1,888

27.739
24.739
22,315
17,706
75,518
49,596
31,710
42,671
25,614
17,346
11,055
10,227
6,707
5.056
15,063
6,962
4,425
2,068
2,437
2.056
926
331
304
1,867
3

1,466
1,085
1,356
4,395
2,701
2,177
3,583
1,500
1,160
1,098
792
574
368
1,195
419
276
85
82
140
127
128
114
64

1

6

31,110

1,542
3.868
4,442
7,242
7,408
8,089
10,517
9,340
11,503
9,919
17,255
11,237
7,163
6,575
6,116
6,473
3,591
3,062
2,593
2,154
1.869
1,719
1,404
1,092
4,697
5,212

2,100
2,296
1,383
1,037
749
521
577
276
827
292
131
107
168
70
233

20

52
65

12

154,166
252,421
371,191
445,279
469,536
499,937
481,644
478,090
447,178
447,974
783,169
644,531
527,553
475,528
723,809
566,010
454,070
378,062
354,745
277,076
248,211
212,539
197,247
170,273
842,021
411,499
248,096
508,870
174,875
107,094
75,984
50,697
34,155
30,106
68,579
30,043
12,359
10,161
6,059
4,072
4,521
1,806
3,004
1,681

IS

21

12,275
8.595

42.650.502

89.462.015

3.838.457

183,963

181,792
5’, 452,051
1,064,084
306,238
185,423
92.693

41,580
1,345,897
444,920
169,495
151,143
104.749

18,625
18,105
20,585
8,816
6,548
13.514

7,282,281

2,237,784

49,932,783

91.699.799

Sales or exchanges of
capital assets 16/

Partnership 15/
Net profit

Net loss

17,401
35,169
53,373
61,223
75,061
87,834
97,350
101,315
122,816
109.650
223,386
193,029
189,102
180,506
309,890
266,854
267,045
248,352
225,822
201,675
179,697
163,670
164,462
154.651
639,952
480,515
347,397
505,672
345,526
252,290
177,128
132,932
97,559
76,312
197,847
75,969
38,707
19,607
22,380
12,264
16,408
7,605
2,108
865
2,155
3,020

528
1,590
2.525
3,895
1,900
1,528
1,716
2,452
2,178
2,030
3,164
2,585
2,206
1,136
3.525
2,455
3,230
2,593
1,924
2,120
1.447
1,790
1,553
1,649
4,941
3,111
2,356
3,563
3,025
1,857
1.447
676
1,169
521
1,510
781
375
ISO
475
108
283

507.679

7.159.551

78,006

5,634
12,263
11,620
17,007
14,158
14,413
14,022
12,089
10,442
9,611
15,470
15,162
7,535
4,918
11,138
4,900
7,955
7,708
6,460
5,679
4,996
3,910
3,921
2,993
13,851
11,019
7.596
11,306
7,470
5,629
4,270
2,598
2,509

2,000
7,310
2,205
1,768
998
815
1.597

1,022
674
563
505
50
95
25

10
71
20
44

Net gain

Net loss

7,637
15,873
21,294
27,054
56,237
54,832
59,822
39,244
40,136
43,852
88,053
78,469
65,382
62,363
101,283
89,072
68,725
60,016
55,432
47,597
43,356
38,347
34,076
55,549
132,803
97,538
73,530
110,246
79,085
59,667
49,893
40,093
34,083
28,945
92,151
55,191
55,331
27,681
55,588
31,510
38,846
14,656
16,584
7,320
7,749
3,901
1,528

2,123
3,732
4,915
6,649
6,095
6,502
7,998
6,535
6,751
6,679
12,366
12,521
8,166
5,559
8,176
5,781
5,821
5,233
4,451
5,482
3,129
2,587
2,410
2,269
7,972
5,194
3,052
5,493
1,869
1,155
830
492
350
272
624

200
89
50

30
24
27
14
9
4

1
2
3

4
5

6
8
7

9

10

11
12
13
14
15
16
17
18
19

20
21
22

23
24
25
26
27
28
29
30
31

52
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48

165.459

49

32,332
9,836
5,468
4,373
3,036
7,408

11,856
8,125
3,671
1,565
1,115
1,738

50
51
52
53
54
55

62.453

28,066

56

1,644.048

164.724

2,269
3,310
1,731
1,254
2.158

13,321
57,485
31,797
17,869
11,388
15.544

13,745
5,430
2,024
1,460
921
1.433

11,462
104,131
88,641
62,708
45,252
29.796

290,074
21,915
5,668
5,918
2,659
6.279

12,862
9,765
8,933
6,228
4,445
6,962

62,445
4,299
898
(52)
(52)
2.555

86,193

11.844

127.404

25.013

541.970

332,513

49,195

70,942

2.308.035

195.525

57

145,549

1,045,123

141,113

6,797,967

494,857

1,596,410

100,173

662,701

124,455

58

5 0,258

72 6 ,3 2 9

4 8 ,6 2 4

5 ,7 8 5 ,5 1 7

14 5 ,3 3 5

5 ,6 1 2 ,3 3 6

4 8 ,7 7 5

1 ,6 4 5 ,3 3 2

6 9 ,0 7 0

59

31/

T o t a l, nontaxable in d iv id u a l returns
Grand t o t a l
Taxable retu rn s w ith a d ju sted gross income
under $5,000 and nontaxable retu rn s
Taxable retu rn s w ith a d ju sted gross

(52)

7.208.746

47,292,456

79,877,924

1,137,288

2 ,6 4 0 ,3 2 7

1 1 ,8 2 1 ,8 7 5

2 ,7 8 7 ,3 6 2

1 income of $ 5 »OOP and over

idivldual returns f o r 1945, toy taxable and nonWH|ile returns anc
deduction; Part I I I ^ returns with itemized deductions: Number of returns,

ted gross income classes — Part^ÉlpifiH returns; Part II, retur■ns with standard
loss from each of the sources comprising adjusted gross income, adjusted gross

C

Taxable retu rn s w ith a d ju sted gross income
under $5,000 and nontaxable retu rn s
Taxable retu rn s w ith ad ju sted gross

,coo

79,077,

47,292,456
2.640.5Z7

1 1 ,8 2 1 ,8 7 5

2 ,7 8 7 ,5 6 2 |

5 0 ,2 5 8

7 2 6 ,5 2 9

5 ,7 8 5 ,5 1 7

4 8 ,6 2 4

14 5 ,5 5 5

5 ,6 1 2 ,5 5 6

4 8 ,7 7 5

1 ,6 4 5 ,5 5 2

'

6 9 ,0 7 0

59

returns ; Par^T, returns with
mprising adjusted gross income, adjusted grc
d e d G H t i o n " r e t

income, deductions,

¿mTiei deductionsV“’Number of returns,

rpayment — Continued

surtax exemption, tax liability, tax payments, and t

- All RETURNS - Continued

A djusted gross income c la s s e s 1 /

S a le s or exchanges o f
property other than
c a p it a l a ss e ts 17/
Net gain

Taxable in d iv id u a l re tu r n s:
0 .5 under 0.75
0.7 5 under 1
1 under 1.25
1.2 5 under 1 .5
1 .5 under 1.75
1.7 5 under 2
2 under 2.2 5
2.25 under 2 .5
2 .5 under 2.75
2.7 5 under 3
3 under 3 .5
3 .5 under 4
4 under 4 .5
4 .5 under 5
5 under 6
6 under 7
7 under 8
8 under 9
9 under 10
10 under 11
11 under 12
12 under 13
13 under 14
14 under 15
15 under 20
20 under 25
25 under 30
30 under 40
40 under 50
50 under 60
60 under 70
70 under 80 •
80 under 90
90 under 100
100 under 150
150 under 200
200 under 250
250 under 300
300 under 400
400 under 500
500 under 750
750 under 1,000
1.000 under 1,500
1,500 under 2,000
2.000 under 3,000
3.000 under 4,000
4.000 under 5,000
5.000 and over

599
1,498
1,138
1,655
1,394
2,353
1,977
1,624
2,771
2,083
5,133
4,511
4,053
3,006
5,458
3,376
3,309
2,132
1,513
1,481
1,319
1,011
934
587
2,137
1,533
675
797

489
199
192
167
103

22
11
16
2
(33)
2
248

Net lo s s
(32)
2,016
1,582
1,189
948
2,123
1,283
3,451
1,422
2,320
3,100
2,559
2,140
1,086
2,641
1,412
2,948
1,936
2,902
1,353
1,227
1,041
1,208
1,039
4,234
2,331
1,872
2,206
1,801
1,279
620
630
385
430
1,433
797
366
500
400
164
419
97
32

from
e s ta te s
and
t r u s t s 18/

laneous
in ­
come 19/

3,804
5,356
7,154
8,391

6,021
12,710
11,087
11,478
8,716
9,670
19,597
17,697
24,975
15,280
31,363
27,472
29,287
25,646
23,383
20,892
19,859
18,194
17,339
16,501
69,552
54,890
43,727
67,397
46,305
33,335
25,534
23,072
17,003
14,119
45,324
23,019
14,463
10,643
9,951
9,793
12,213
8,770
8,088
9,106
1,101
144

10,269
19,006
22,992
25,392
31,129
29,836
32,398
26,489
31,319 ;
23,387 >
42,642 I
34,698 !
20,654
24,438
27,179
13,347
16,061
13,168
12,873
10,143
8.500
7,814
6,970
6.500
20,396
15,241
6,282
8,166
4,303
3,266
2,574
1,218
609
1,158
2,519
1,270
569
264
155
95
60

126!
78 j
1
1
1

(33)

31/

1,322,903
2.471.433
3,834,189
5,005,373
5,845,469
6,692,418
7,022,363
7,213,675
7,261,329 j
7,133,274
13,017,492
10,125,025
6,892,942
4,649,038
4,826,976
2.779.434
1,888,235
1,501,203
1,277,388
1,094,124
923,312
829,486
753,545
666,679
2,668,955
1,853,715
1,254,327
1,708,973
1,089,366
731,520
544,726
406,852
304,660
245,041
661,464
295,289
163,463
110,845
115,585
86,447
114,603
55,141
46,214
31,910
16,806
7,042
13,795
7.617

1,652,011
2,558,618
3,302,308
3,759,005
3,852,626
3’ ,975,875
3.928.482
3,936,592
3,789,067
3,561,434
6.009.483
4,228,870
2,524,121
1,489,850
1,291,616
589,308
332,010
231.360
171,604
134,463
102.360
84,038
70,226
57,147
192,702
103,069
55,552
58,773
28,051
15,125
9,231
5,835
3,789
2,642
5,429
1,629
699
363
307
183
181
56
34
16
10
4

6
1

3,903
558
(32)
709
(32)
(32)

57,169
2,116
(32)
(32)
(32)
(32)-

(32)
1,326
1,480
990
(32)
2.124

4,872
10,914
6,673
4,322
4,334
3.387

8/292,472
1,493,401
599,184
267,458
201,383
173,044

3/

27,582
110,823

221,201

354,715
472,301
599,429
658,934
686,008
707,912
716,950
1,391,200
1,178,294
87:,803
635,796
727,208
473,245
351,156
298,374
269,586
242,705
214.678
201,619
190,740
175,651
775,181
619,816
466,851
706,167
496,611
355,878
279,443
216,513
166,809
137,655
387,962
180,328
101.678
68,097
72,065
51,552
72,902
37,060
27,918
22,267
10,053
4,584
10,277
4.801

Tax
w ithheld

Payments
on 1945
d e c la r a ­
tio n 21/

85,437
161,126
272,583
395,396
497,450
608,062
659,347
673,701
686,729
685,431
1,304,950
1,074,191
752,547
507,900
491,517
248,269
140,931
104,050
83,849
72,365
55,069
52,240
44,118
37,440
155,764
105,997
71,235
91,851
54,721
35,429
25,351
16,960
12,756
9.364
2 :,1 4 0
8,605
3,884
2.364
1,896
1,154

1,222
206
165
124
28
14

Balance o f
ta x due a t
time o f
filin g

4,611
12,469 j
20.814
27.021
32,951
43,148
45.815
49,252
55.021
56,222 !
113,137
100.647
93,675 !
92,830
164,915
152,170
153,796
142,083
137,273
128,324
118,851
114,193
111,383
104,740
483,496
407,474
319.647
502,382
368,364
268,976
214,001
169,888
131,877
110,277
315,476
150,151
86,041
58,271
63,128
44,833
64,804
34,208
25,921
21,050
9,798
4,306
8,700
4.825
5.943.235

17.050.378

117.561.661

T o ta l, ta x a b le in d iv id u a l retu rn s
Nontaxable in d iv id u a l r e tu r n s :
No a d ju sted gross income J5/
Under 0 .5
0 .5 under 0.7 5
0.7 5 under 1
1 under 1.25
1.2 5 and over

Tax
Adjusted
| Amount o f
lia b ilit y
gross
I surtax
income _2_/
exemption 20/

Overpayment
(re fu n d , or
c r e d it on
1946 ta x )

5,001
16,766
25,985
34.857
43,867
49,835
52.857
56,079
58,156
59,948
113,725
100,879
83,389
72.294
110,746
94,066
79,833
71.294
65,047
56,350
52,201
46,524
45,076
42,346
175,663
135,561
94,100
137,500
90,816
63,280
48,682
35,888
27,376
21,903
60,870
26,565
14,315
9,141
8,465
6,998
7,912
3,066
1,994
1,335
280
264
1,577

67,467
79,538
98,178
102,558
101,969
101,617
99,088
93,022
91,995
84,654
140,611
97,421
57.807
37,227
39,969
21,262
23,403
19,052
16,581
14,334
11,444
11,337
9,837
8,876
39,743
29,216
18,131
25,566
17,289
11.807
8,592
6,223
5,199
3,889
11,523
4,994
2,562
1,679
1,423
1,432
1,035
420
162
242
52

2.410.672

1.620.450

24

4,766
119,613
31,441
9,483
6,944
6.916

18,688
4,445
2,396
1,362
919
3,055

23,453 50
124,059 I 51
33,836
10,846
7,861
9.973

179.163

30,865

210.028

17.050.378

10.496,091

5.974.100

8,632,948

8,544,013

222,433
4,057,636
1,045,932
407,651
267,918
123.678

T o ta l, n ontaxable in d iv id u a l returns
Grand t o t a l
Taxable retu rn s w ith adjusted gro ss income
under $5,000 and nontaxable returns
Taxable retu rn s w ith ad ju sted gro ss income
o f $5.000 and over
__________________________ _

67,825

127,132

948,331

600,058 9/120.008.659

88,571

170,846

409,151

38,561

777,485

For fo o tn o te s , see p p . 21-22} fo r e x te n t to which d ata are e stim a te d , see pp. 5 -6 .

190,907

9/90,933,921
29,074,738

54,693,583
3,547,811

8,417,430

1,952,078

2.410.672

1.830.478

778,478

773,638

1,463,180

5,195,622

1,657,034

367,298

in c o m e ,d e d u c tio n s ,* su rta x exem ption, ta x l i a b i l i t y , ta x payments, and t a x overpayment - Continued
PART I I . - RETURNS WITH STANDARD DEDUCTION & /

-J■f —riT -it!—
A djusted gross income c la s s e s JLJ

1
2
3
4
5

6
7
8
9
10
11
12
13
14
IS
16
17
18
19

20
21
22
23
24
25
26
27
28
29
30
31

52
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55

x a b le in d iv id u a l retu rn s:
0 .5 under 0.75
0.7 5 under 1
1 under 1.25
1.25 under 1.5
1 .5 under 1.75
1.75 under 2
2 under 2.25
2.25 under 2 .5
2 .5 under 2.75
2.75 under 3
3 under 3 .5
3 .5 under 4
4 under 4 .5
4 .5 under 5
5 under 6
6 under 7
7 under 8
8 under 9
9 under 10
10 under 11
11 under 12
12 xinder 13
13 Tinder 14
14 under 15
15 under 20
20 under 25
25 under 30
30 under 40
40 under 50
50 under 60
60 under 70
70 under 80
80 under 90
90 under 100
100 under 150
150 under 200
200 under 250
250 under 300
300 under 400
400 under 500
500 under 750
750 under 1,000
1.000 under 1,500
1,500 under 2,000
2.000 under 3,000
3.000 under 4,000
4.000 under 5,000
5.000 and over

8
6
3
1
1
1

Dividends
and in ­
t e r e s t 11/

1,063,700
1,921,257
2)972)832
5)902)744
4)492,627
5)l30)502
s)34l)851
5)383,954
5)333)956
5 ) l6 l) 138
9 )l4 5 ’, 740
6)900’,816
4)446,171
2)765)078
2 ) ll8 ) l2 7
'888,202
435)698
275)331
189,485
144)188
96)604
83)266
58) 303
43)360
140)753
57)529
28)964
24)350
9)956
4,667
2,296
1,004
807
792
540
284
40
11
(33)
64
(33)

18,816
27,486
33,474
33,432
37,397
39,661
40,679
38,398
36,223
42,538
72,409
64,947
50,870
47,853
80,979
65,886
48,951
37,607
30,301
24,121
19,543
16,076
14,159
11,337
34,872
15,866
9,087
7,881
3,875
2,158
1,277
1,062
458
185
919
201
11
182
4
10
457
(33)
*

_
_
_
-

T o ta i, ta x a b le in d iv id u à l returns
Nontaxable in d iv id u a l retu rn s: 31/
No a d ju sted gross income 5 /
Under 0 .5
0 .5 under 0.75
0.7 5 under 1
1 under 1.25
1.25 and over
T o ta l, nontaxable in d iv id u a l returns

57

Grand t o t a l

5<

S a la r ie s
and

1,915,280
2,546,756
3,023,202
3,195,775
3,099,778
3,038,760
2,781,447
2,503,500
2,241,000
1,986,556
3,129,343
2,071,953
1,215,385
722,938
579,381
262,819
145,461
95,401
67,307
48,147
34,686
26,967
21,303
16,207
44,887
17,661
7,522
6,090
2,258
924
487
278
164
114
152
43

56

56

T o ta l
number
of
return s

Taxable returns -with a d ju sted gross income
under 45,000 and nontaxable returns
Taxable returns w ith ad ju sted gross income
o f S5.000 and over____________________________________

34.849,952

R ents and
r o y a lt ie s 13/

and pen­
sio n s j.2/
5,431
4,230
9,099
7,768
5,790
5,275
4,614
4,286
3,725
6,306
5,436
7,175
5,281
3,000
4,053
4,310
1,162
717
931
676
550
302
232
256
471
122
154
121
35
17
5
22
1
3
.
(33)
8
—
-

._

Net p r o fi t
21,643
30,938
32,562
38,234
39,148
36,153
37,123
37,996
36,353
38,778
67,890
56,834
40,231
41,195
51,025
38,776
27,334
20,374
17,424
13,766
10,850
8,413
7,582
5,796
19,507
9,869
5,243
4,805
2,139
1,318
425
549
168
303
323
148
28
13
—
-

Net lo s s

1.011.648

801.076

32,285
12,940
4,557
1,631

Business
p r o fe s s i

115,622
204,181
296,290
340,839
358,145
375,254
361,491
559^540
334,607
335,298
591,391
488,587
394,304
364,707
555)520
421,079
328,832
260,998
219,542
171,042
144,035
119,148
106,334
82,695
275,169
138,253
66,308
65,066
31,943
14,811
9,485
5,619
5,537
3,571
5,842
2,241
236
256
297
~

-

*
f

S a le s or exchanges o f
c a p it a l a s s e ts 16/

15/
it lo ss

Net p r o fit

1,195
2,536
2,560
4,527
4,161
4,720
6,292
5,278
5,309
6,185
10,421
6,477
4,485
3,956
3,181
4,569
1,653
1,188
1,127
849
823
525
631
395
1,081
596
280
211
120
42
45
21
1
2
6
1
“

5,085
9,430
7,963
12,737
8,827
10,581
10,191
7,770
6,978
6,332
8,527
8,395
5,562
3,643
5.390
3,811
3.390
2,845
2,532
1,789
1,560
1,449
732
831
2,821
1,513
792
1,097
422
257
198
72

66
35
24

11

14,875
28,955
43,125
48,603
61,269
65,196
78,382
80,608
93,659
85,580
162,548
148,313
144,334
137,832
234,465
208,794
190,128
168,194
141,650
120,324
101,011

87,372
83,389
74,163
245.437
140.438
78,088
87,022
43,225
21,746
14,278
9,709
6,827
3,767
6,573
1,982

457
748
1,583
3,243
1,052
1,161
1,152
1,957
1,312
1,274
1,695
1,549
1,386
404
2,143
1,118
1,865
1,366
684
761
508
552
430
557
941
424
349
350
105
129
108
22
8
18
16
1
5
-

Net ga in

Net lo s s

6,304
11,607
15,197
19,574
24,742
24,457
27.645
27,795
27,478
50,125
57,875
51,804
44,883
42,368
68,804
53,373
38,742
32,606
27,626
21,514
17,266
15,783
11,430
11,514
37,294
19,509
12,189
13,281
6,646
4,228
3,253
1,962
1,304
1,809
2,917
1,454
1,207
857

1,835
2,245
3,516
4,088
2,699
2,836
4,939
2,932
3,049
3,389
5,897
7,676
4,173
3,184
3,429
2,020
2,051
1,893
1,366
1,009
882
637
696
410
1,474
510
246
229
78
28
11
13
3
2
6
(33)

4

:

-

91.564

-----

4,911
715
(32)
(32)

7.949.920

145.658

95,185
68,556
36,488
23,815

17,106
5,504
3,212
665

69.252

9,351
6,267
2,705
2,576

3,275
(32)
(52)
(32)

8,995
3,237
1,770
768

6,121

14.768

8.024

5,388,753
902,563
195,046
117,879

1,336,489
398,079
123,545
95,589

14,236
8,016
2,099
876

2,054
1,258
(32)
(32)

6 . 604.241

1.955.502

25.227

3.989

224.042

41.454.193

70.520.489

1.056.875

3.284.350

35.592

81,405

5,144,103

136,508

1,214,178

23,152

426,622

60,282

3,029,859

31,637

2,070,172

12,440

406,568

16,994

40,075,914
1 ,3 7 8 ,2 7 9

65,915,868
4,604,621

609,410
42 7 ,4 6 5

14,148

606,291
246,198

74,192
17,347

20.899

77,276

extent to uhich

• J

—
t « dl W

1,456
(32)
(32)

li U

t a x paym en ts, and t a x overpaym ent - C on tin u ed

—

ad3usted gro3S

A djusted gross income c la s s e s 1 /

(Adjusted gross
S a le s or xchanges o f
property th er than
c a p it a l as s e ts 17/
Net gain

1

z

3
4
S

tì
7
8
9
10
11

12
13
14
15
16
17
18
19

20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49

50
51
52
53
54
55

Taxable in d iv id u a l retu rn s:
0 .5 under 0.75
0.75 under 1
1 under 1.25
1.25 under 1 .5
1.5 under 1.7 5
1.75 under 2
2 under 2.25
2.2 5 under 2.5
2 .5 under 2.75
2.75 under 3
3 under 3.5
3 .5 under 4
4 under 4 .5
4 .5 under 5
5 under 6 .
6 under 7
7 under 8
8 under 9
9 under 10
10 under 11
11 under 12
12 under 13
13 under 14
14 under 15
15 under 20
20 under 25
25 under 30
30 under 40
40 under 50
50 under 60
60 under 70
70 under 80
80 under 90
90 under 100
100 under 150
150 under 200
200 under 250
250 under 300
300 under 400
400 under 500
500 under 750
750 under 1,000
1,000 under 1,500
1,500 under 2,000
2,000 under 3,000
3,000 under 4,000
4,000 under 5,000
5,000 and over

471
1,297
941
1,360
945
1,981
1,400
576
1,460
1,221
2,432
3,366
2,164
1,891
2,277
1,615
1,931
1,321
799
628
665
578
329
222
845
472
149
166
81
9
10
4
3
7
1
-

Nontaxable in d iv id u a l r e tu r n s:
No a d ju sted gro ss in ca re 5 /
Under 0 .5
0 .5 tinder 0.7 5 0.75 under 1
1 under 1.25
1.25 and over

-

-

33.617

19.351

254
(32)
(32)
(32)
-

(32)
1,539
789
585
355
1,729
720
909
557
619
820
1,764
1,493
722
916
376
1,482
579
418
396
310
268
155
221
471
244
249
110
60
26
11
1
7
11
14
93
16
6

-

-

240.804

354.784

82.783.160

42.208.388

9.661.481

7.597.447

1,385
(32)
(32)
-

865
695
(32)
(32)

10,252
4,356
2,495
2,066
-

1,477,166
496,893
170,975
125,945
-

3,995,757
910,965
290,858
184,937
-

. -

891

1.965

1,824

19,169

2.270.979

5.382.517

34,508

21.316

242.628

373.953

85.054.139

47.590.904

9.661.481

7.756.006

22,396

14,876

100,702

293,752

74,105,729

45,781,425

7,152,309

7,059,843

1,809,479

2,509,172

716,163

-

-

_

-

_
_

-

-

-

_

-

_

1,249,321
2,231,811
3,410,454
4,391,501
5,028,890
5,688,708
5,902,915
5,940,014
5,877,912
5,703,741
10,120,992'
7,729,596
5,140,677
3,413,218
3,136,631
1,694,764
1,085,127
807,659
637,549
504,114
398,083
336,221
286,970
234,591
765,706
391,230
204,451
207,412
99,983
50,159
31,272
20,723
13,828
10,809
17,818
7,143
1,762
1,579
1,092
421
522
791

Tax
w ithheld

1,570,249
2,333,083
2,970,130
3,322,666
3,332,264
3,399,019
3,323,987
3,274,168
3,088,741
2,866,019
4,702,897
3,242,325
1,877,808
1,095,555
820,581
342,647
183,116
113,228
80,717
58,263
41,082
31,617
24,825
13,381
50,610
19,830
8,270
6,621
2,423
962
515
283
167
127
148
48
10
5
3
1
1
3
-

_

-

25,958
102,084
201,101
321,297
420,349
527,299
572,588 ,
582,301
592,968
593,238
1,121,185
932,414
675,061
484,466
499,945
307,839
215,233
172,002
144,654
120,446
100,211
88,592
78,908
67,489
243,417
144,480
84,419
95,130
51,020
27,504
18,154
12,582
8,716
6,870
11,995
5,062
1,029
982
948
369
465
711
-

32,314
150,424
248,795
357,778
439,943
530,717
567,668
565,188
566,275
558,247
1,031,807
832,622
570,539
373,467
311,981
139,212
69,817
44,495
31,098
24,066
15,875
14,119
9,975
7,433
24,405
10,160
5,170
4,445
1,910
879
425
229
120
157
115
52
9
2
(33)
14
-

-

Payments
on 1945
d e c la ra ­
t io n 21/
3,873 •
9,332
15,640
19,150
23,507
31,093
33,601
35,179
39,697
40,236
81,299
72,939
67,515
68,068
117,554
104,974
98,036
85,203
75,990
66,397
56,663
52,154
47,814
41,297
152,686
93,511
56,737
66,092
35,575
19,296
13,032
9,212
6,478
5,021
8,563
3,855
824
622
837
457
451
711
_
-

Balance o f
ta x due a t
time o f
filin g
4,286
13,949
21,614
28,861
36,158
40,496
42,734
45,394
46,977
49,165
90,305
80,086
65,180
55,963
84,820
71,582
57,012
49,319
42,981
34,950
30,966
26,146
23,882
21,080
74,861
45,004
24,431
26,924
14,623
7,852
5,071
3,288
2,277
1,800
3,375
1,229
206
368
111
(33)

Overpayment
(re fu n d , or
c r e d it on
1946 ta x )
65,015
71,621
84,946
84,492
79,260
75,607
71,417
63,459
59,981
54,412
82,225
53,281
28,172
18,031
14,410
7,931
9,631
7,014
5,414
4,967
3,293
3,827
2,763
2,321
8,535
4,195
1,919
2,331
1,087
523
374
147
158
108
57
74
10
10
87
-

-

•

1.761.821

1.275.326

973.105

118,592
28,514
6,600
4,855
-

3,614
1,659
462
228
-

-

122,206
30,173
7,063
5,081
-

158.559

5.963
1.767.784

1.275.326

1.137.628

547,742

62 1 ,lo 8

1,056,442

1,220,042

654,158

81,186

-

31/

T o ta l, nontaxable in d iv id u a l returns

57

Grand t o t a l

59

8,582
14,446
18,337
19,672
22,460
23,177
25,396
19,002
21,863
16,198
31,115
23,366
14,201
16,768
18,272
8,600
8,569
6,770
6,253
4,539
4,183
3,244
2,989
2,944
5,529
4,177
1,249
1,408
153
204
166
299
83
208
124
1
237
-

-

56

58

2,756
3,911
5,006
4,454
3,461
8,079
7,629
6,898
5,794
4,356
11,515
10,247
15,336
9,436
20,170
16,025
14,222
11,612
9,6-j 5
8,120
7,457
5,469
4,866
4,699
12,618
8,283
4,936
5,310
2,716
1,483
449
644
683
241
636
936
24
250
411
1
_
-

-

T o ta l, ta x a b le in d iv id u a l returns

Net lo s s

income c la s s e s and money fjtm re s In thousands o f dol l a r s )
Income
M isc e l­
laneous
Amount o f
Adjusted
from
Tax
e sta te s
in ­
surtax
gross
l i a b i l i t y Zj
and
come 19/
exemption 20/
income 2 /
tr u s t s 18/

Taxable returns w ith a d ju sted gro ss income
under $5,000 and nontaxable returns
Taxable retu rn s w ith a d ju sted gross income
o f $5.000 and over

12,112

6,440

141,926

For fo o tn o te s , see p p .21-225 fo r e xte n t to w hich d ata are estim ate d , see pp. 5-6,

80,201

10,948,410

164.523

income, deduction», surtax exemption, tax l i a b i l i t y , tax payment», and tax overpayment - Continued
PART I I I . - RFTUR

Adj; sted gross income glasses j/

1
2
S

4

5
6
8
9
10
11
7

12
15
14
15
16
17
18
19

20
21
22
25
24

axable in d iv id u a l return«*
0*5 under 0*75
0*75 under 1
1 under 1*25
1*25 under 1*5
1*5 under 1*75
1*75 under 2
2 under 2*25
2«25 under 2*5
2«5 under 2*75
2*75 under 5
5 under 3*5
3*5 under 4
4 under 4*5
4#5 under 5
5 under 6
6 under 7
7 tinder 8
8 under 9
9 under 10
10 under 11
11 under 12
12 under 15
15 under 14
14 under 15
15 under 20
20 under 25
25 under SO
30 under 40
40 under 50
50 under 60
60 under 70
70 under 80
80 under 90
90 under 100
100 under 150
150 under 200
200 under 250
250 under 300
300 under 400
400 under 500
500 under 750
750 under 1,000
1.000 under 1,500
1,500 under 2,000
2.000 under 3,000
5.000 under 4,000
4.000 under 5,000
5.000 and over

31/

T o ta l, nontaxable in d ivid u a l return«

Taxable returns with adjusted gross
income under 85,000 and nontaxable returns
Taxable returns with adjusted gross

21-221

S a la rie s
and
wages 10/

Rents and
ro y a ltie s 15/
Net
p r o fit

919
2,888
6,647
6,794
7,256
4,616
4,653
2,671
3,994
2,736
6,489
3,539
2,330
757
2,367
1,586
2,512
1,667
1,743
1,760
1,338
1,164
853
1,100
3,924
2,579
2,023
3,462
1,465
1,143
1,093
792
552
367
1,192
419
276
77
82
140
127
128
114
64

7,301
17,370
20,687
26,750
27,069
26,155
26,985
25,842
27,747
23,525
45,844
37,568
27,257
22.741
37.742
29,497
26,635
■21,860
20,090
17,344
16,889
16,326
14,733
11,910
56,011
39,727
26,467
37,866
23,475
16,028
10,630
9,678
6,519
4,753
14,740
6,814
4,397
2.055
2,437
2.056
926
331
304
1,867

H et
1088

347
1,332
1,882
2,715
3,247
3,369
4,225
4,062
6.194
3,734
6,834
4,760
2,678
2,619
2,935
1,904
1,938
1,874
1,266
1,305
1,046
1.194
773
697
3.616
2.616
1,820
2,085
1,263
995
704
500
376
274
821
29
131
107
168

Net
p r o fit
18,544
48,240
74,901
104,440
111,391
124,683
120,153
118,745
112,571
112,676
191,778
155,944
133,049
108,821
170,289
144,9
125,238
117,064
115,201
106,034
104,176
93,191
90,913
87,578
366,852
273,246
181,789
243,804
142,932
92,283
64,499
45,078
30,618
26,535
62,737
27,802
12,103
9,905
5,762
4,07
4,521
1,806
3,004
1,681
15

)6

Partnership 15/

Business and
profession 14/

Net
p r o fit

Net
l 068

549
2,833
3,657
4,270
5,331
3,832
3,831
4,319
3,464
3,279
6,943
4,767
1,97
1,275
5,748
1,089
4,565
4,863
3,928
3,890
3,4?
2,461
3,189
2,162
11,030
9,506
6,804
10,209
7,048
5,372
4,072
2,526
2,443
1,965
7,286
2,194
1,768
998
815
1,397

Net
los8

(32)
2,526
6,214
(S2)
940
10,248
(32)
12,620
848
13,792
367
22,638
564
18,968
495
20,707
866
29.157
756
24,070
1,469
60,838
1,036
44,716
820
44,768
(32)
42,674
(32)
75,425
1,337
58,060
1,365
76,917
1,227
80.158
1,240
82,172
1,359
81,351
939
78,686
1,238
76,298
1,123
81,073
1,112
80,488
4,000
394,515
2,687
340,077
2,007
269,309
3,213
418,650
2,918
302,301
1,728
210,544
1,339
162,850
654
123,223
1,161
90,732
503
72,545
1,494
191,274
780
71,987
370
38,707
150
19,601
473
21,589
108
12,264
283
16,406
6,814
2,108
865
2,155
3,020

16/
Net
gain

Net
loss

1,333
4,266
6,097
7,480
11,495 |
10,375
12.177
11,449
12,658
13,727
30.178
26,665
20,499
19,995
32,479
35,699
29,983
27,410
27,806
26,083
26,070
22,564
22,646
22,035
95.509
78,029
61,341
96,965
72.439
55.439
46,640
38,131
32,779
27,136
89,214
53,737
34,124
26,824
35,588
31.510
38,846
14,656
16,584
7,320
7,749
3,901
1,528

288
1,487
1,597
2,561
3,396
3,466
3,059
3,603
3,702
3,290
6,469
4,845
3,993
2,375
4,74 7
3,761
3,770
3,340
3,085
2,473
2^247
1,950
1,714
1,859
6,498
4,684
2,806
3,264
1,791
1,107
819
479
347
270
618
200
89
50
30
24
26
14

1,427,158

96,207

32,332
843
2,231
2,603
2,268
7.408

S ales or Xchanges
o f proper by other
than capii bal
assets 17/
gain

laneous
from
in ­
e sta te s
come 19/
and
tru sts 18/

loss

2
856

1,687
4,560
4,655
5,720
8,669
6,659
7,002
7,487
9,456
7,189
11,527
11,332
6,453
7,670
8,907
4, 7 4 7 1
7,492
6,398
6,620
5,604
4,317
4,570
3,981
3,556
14,867
11,064
5,033
6,758
4,150
3,062
2,408
919
526
950
2,395
1,269
332
264
155
95
60
126
78
1
1
1
(33)
-

27,891

44,739

698,617

210,772

49

11,856
2,004
2,215
1,341
888
1,738

3,903
(32)
(32)
(32)
(32)
(32)

57,169
(32)
(32)
(32)
(32)
(32)

(32)
(32)
785
738
(32)
2,124

4,872
662
2,317
1,827
2,268
3,387

50
51
62
55
54
65

47,685

20,042

5,426

61,077

7,086

15,333

56

1,474,843

116,249

53,317

105,8ie

705,703

226,105

67

70,144

115,399

58

635,569

110,706

59

6,892
22,210
23,567
30,046
32,295
31,721
33,281
35,578
27,223
32,202
61,023
51,326
39,419
40,129
87,020
73,205
71,022
65,535
65,406
61,065
58,355
55,483
52,725
52,161
228,201
184,969
137,238
206,402
147,599
108,970
86,613
68,722
56,472
46,617
140,491
68,535
41,570
30,309
31,027
22,830
36,512
21,507
15,826
10,900
5,734

7,800,550

20,895,028

2,826,809

92,399

842,972

79,275

4,291,594

164,021

3,896,100

181,792
63,298
161,521
111,192
67,544
92,693

41,580
9,408
46,841
45,950
55,754
104,749

18,625
3,869
12,569
6,717
5,672
13,514

(32)
215
2,052
1,297
1,011
2,158

13,321
5,200
18,857
13,312
9,757
15,544

13,745
519
1,309
1,151
766
1,433

11,462
8,946
20,085
26,220
21,419

290,074
4,809
2,164
2,706
1,994

12,862
414
3,523
1,869
6,962

62,445
1,024
(32)
(32)
(32)
2,555

678,040

284,282

60,966

7,855

75,991

18,923

308,026

28,296

66,763

8,478,590

21,179,310

2,887,775

4,409,522

472,047

3,924,596

7,216,542

13,962,056

527,878

66,921

1,653,864

358,349

382,232

77,021

236,079

64,17?

17.7N

73,69a

31,277

2,755,658

113,698

3,542,164

36,335

1,238,764

52,076

16,60

32,12

1,262,048

for extent to -which data

7,217,254

-

12,275
8,595

2,559,897

iatinated. see pp. 5—
6.

64,144
36,110

438,832
480,131

1,022

674
583
505
50
95
25

2,666

1
2

1,048
1,445
2,148
3,937
2,560
4,631
3,458
4,560
2,922
5,314
8,082
7,450
9,639
5,844
11,193
11,447
15,065
14,034
13,718
12,772
12,402
12,725
12,473
11,802
56,934
46,607
38,791
62,087
43,589
31,852
25,085
22,428
16,320
13,878
44,688
22,083
14,439
10,393
9,951
9,382
12,212
8,770
8,088
9,106
1,101
144
-

(32)
(32)
(32)
(32)
449
(32)
577
1,048
1,311
862
2,701
1,145
1,889
1,115
3,181
1,761
1,378
811
714
853
654
433
605
365
1,292
1,061
526
631
408
190
182
163
100
22
241
10
16

34,458
138,998
283,457
426,591
615,018
783,288
904,436
1 060,576
1 171,469
1 ,219,989
2 ,502,034
2 ,071,949
i ,477,071
988,440
1,278,279
732,862
459,971
371,270
318,375
287,127
230,930
218,127
194,425
167,741
714,051
506,706
342,420
445,804
265,785
172,306
120,997
81,785
60,920
44,860
108,313
39,660
18,444
11,637
9,788
5,438
6,455
1,026
834
697
153
65

109,126
271,657
374,934
447,097
502,487
534,706
527,203
536,031
526,962
497,631
894,964
641,182
414,103
260,399
310,271
167,934
107,434
81,914
67,549
56,307
45,744
39,552
34,588
29,845
110,421
65,568
38,444
43,681
22,225
12,494
7,954
5,170
3,437
2,473
5,378
1,683
730
401
330
194
192
64
39
19

T o ta l, taxable in d ivid u a l return«
Nontaxable in d ivid u a l returns*
No adjusted gross inoome 5/
Under 0*5
0*5 under 0*75
0*75 under 1
1 under 1*25
1*26 and over

Total
number
of
returns

(Adjusted gross income
Annuities
Dividends
and pen­
and in ­
te r e s t l l / sions 12/

(3 3 )

(32)
(32)
(32)
593
394
(32)
2,542
865
1,701
2,280
795
647
(32)
1,725
1,036
1,466
1,357
2,484
957
917
773
1,053
818
3,763
2,087
1,623
2,096
1,741
1,253
609
629
378
419
1,419
704
350
494
400
164
419
97
32
•
•

5
4
5

6
8
7

9

10

11

12

15
14
15
16
17
18
19
20

21
22

25
24
25
26
27
28
29
50
51
52
55
34
35
36
57
58
59
40
41
42
45
44
45
46
47
48

Tabl* 2 . - Ind ivid ual returns fo r 1945, by taxable and ncntaxeble returns and by adjusted gross inccme c la sses - Part I , a l l returns; Part I I , returns with f * " “**“ ^
deduction; Part H I , returns with itemised deductions: Number o f retu rns, income or lo s s from each of the sources comprising adjusted gross Income, adjusted gross
income, deductions, surtax exemption, ta x l i a b i l i t y , ta x payments, and ta x overpayment ,—Continued
PART I I I . - RETURNS WITH ITEMIZED DEDUCTIONS 23/ - Continued

Adjusted gross Income cla sses 1/

1
2
3
4
S

6
7
8
9

10

11
12
13
14

IS
16
17
18
19
20
21

22

23
24

25
26
27
28
29
30
31
32
33
34

35
56
57
38
39
40
41
42
43
44
45
46
47
48
49

50
51
52
53
54
55
56
57

« a b le in d ivid ual returns:
0 .5 under 0.75
0.75 under 1
1 under 1.25
1.25 under 1 .5
1 .5 under 1.75
1.75 under 2
2 under ¿.2 5
2.25 under 2.5
2 .5 under 2.75
2.75 under 3
3 under 5 .5
3.5 under 4
4 under 4 .5
4 .5 under 5
5 under 6
6 under 7
7 under 8
8 under 9
9 under 10
10 under 11
^
11 under 12
12 under 13
15 under 14
14 under 15
15 under 20
20 under 25
25 under 30
30 under 40
40 under 50
50 under 60
60 under 70
70 under 80
80 under 90
90 under 100
100 under 150
150 under 200
200 under 250
250 under 300
300 under 400
400 under 500
500 under 750
750 under 1,000
1.000 under 1,500
1,500 under 2,000
2.000 under 3,000
5.000 under 4,000
4.000 under 5,000
5.000 and over

73,58?
239,622
423,735
613,872
816,579
1,003,710
1,119,448
1,273,661
1,383,417
1,429,533
2,896,500
2,395,429
1,752,265
1,230,820
1,690,345
1,084,670
803,108
693,544
639,839
590,010
525,229
493.265
466,575
432,088
1,903,249
1,462,485
1,049,876
1,501,561
989,383
681,361
513,454
386,129
290,832
234,232
643,646
288,146
161,701
109.266
114,493
86,026
114,081
54,350
46,214
31,910
16,806
7,042
13,795
1 R17

T o ta l, taxable in d ivid u a l returns
Nontaxable in d ivid u a l retu rns:
No adjusted gross ine erne 5/
Under 0 .5
0 .5 under 0.75
0.75 under 1
1 under 1.25
1.25 and over «

Adjusted
gross
income 2/

31/

T o ta l, non taxable in d ivid u a l returns
Grand to ta l

58 Taxable returns w ith ad ju sted gross income
under $5,000 and nontaxable returns
59 Taxable returns with adjusted gross income
o f $5,000 and over____________________________ ■

!

Contribu­
tions 24/

9/176.019

18,126,328

2,597
15,514
50,505
40,751
52,057
58,333
59,442
59,118
62,798
57,044
103,055
77,261
48,330
32,064
39,616
20,543
14,292
10,342
8,101
6,240
5,230
3,737
3,599
2,781
9,304
5,257
2,621
2,624
1,215
562
411
197
155
105
151
40
14
10
3
4

I,
5,443
9,171
14,061
21,507
26,807
30,759
39,893
41,277
46,826
97,732
90,325
69,313
58,875
66,000
43,039
25,486
20,336
19,167
15,493
13,075
II,
10,864
10,600
40,047
27,110
17,022
25,428
16,696
12,799
8,621
7,689
4,530
4,735
13,240
6,860
3,571
3,416
2,591
3,211
2,281
767
1,350
331
142

129
870
1,607
2,627
4,481
4.529
5,026
6,904
7.687
7,633
15,760
11,256
9,138
5,845
9,840
3,939
3,262
2,274
1,708
1,875
1,691
1,415
1,153
929
3,943
2.688
1.530
2,272
1,306
1,002
649
567
278
347
719
195
491
22
111
38
82
43
23

674,388 1,205,260

127,892

836,005

990,594

352
2,564
6,079
10,059
14,792
20,446
24,296
28,805
33.752
34,897
74,257
62,093
45,464
31,306
45,290
26,071
18.753
14,824
12,433
10,696
9,043
7,925
7,327
6,346
25,469
17,976
12,042
16,151
10,402
7,663
5,915
4,125
3,102
2,879
7,439
3,438
2,271
2,030
1,562
1,357
1,178
703
530
204
52
10

1 143

20

1

156
549

10,780
533
47,184
87,725
124,308
166,175
197,950
216,196
241,772
255,739
263,683
522,397
427,469
306,834
218,382
293,632
176,822
122,587
98,735
87,211
75,894
65,063
58,175
881
53,642
48,606
199,990
142,586
97,590
137,753
91,112
65,320
49,441
38,817
29,664
25,312
73,682
35,907
20,883
15,689
14,599
12,439
14,716
7,057
7,739
3,894
2,201
186
1,896
2.283

Net
income

62,802
192,438
336,009
489,564
650,404
805,760
903,252
1,031,889
1,127,678
1,165,850
2,374,102
1,967,961
1,445,431
1,012,439
1,396,714
907,847
680,521
594,809
552,628
514,116
460,166
435,090
412,933
383,483
1,703,259
1,319,899
952,286
1,363,807
898,271
616,041
464,014
347,312
261,168
208,920
569,964
252,238
140,818
93,577
99,894
73,588
99,365
47,292
38,474
28,016
14,605
6,855
11,899
5.335

5,257,717 29,520,783

-

Amount of
Tax
Tax l i a ­
surtax
let
b i l i t y 3/ withheld
d e fic it 30/ exemp­
tion 20/
81,762
225,535
332,178
436,339
520,362
576,856
604,495
662,424
700,326
695,415
1,306,586
986,545
646,313
394,296
471,035
246,661
148,894
113,132
90,888
76,201
61,278
52,421
45,401
38,766
142,092
83,240
47,282
52,152
25,628
14,163
8,717
"
5,552
3,622
2,515
5,281
1,581
689
359
305
183
181
53
34
16
10
4
6
1
-

2,098
1,097
2,618
4,187
3,528

3,777
2,773
8,227
7,161
6,278
75.904

797
(32)
975
3,416
1,518
18.463

2,820
2,677
16,908
23,167
16,400
37,799

1,748
1,547
4,699
6,277
5,264
43.096

13,044
9,997
39,815
49,281
36,996
131.686

14,705
63,853
50,636
40,571
59.616

305,516
3,467
1,377
3,433
1,928
18.259

222,433
61,879
134,967
116,793
82,983
123.678

26.425

22.498

44.120

25.381

99.771

62.631

280.819

229.181

333.980

742.73C

784,541
665,470

1,624
8,739
20,100
33,418
51,952
72,130
86,346
103,707
114,944
123,712
270,015
245,880
196,742
151,330
227,263
165,406
135,923
126,372
124,952
122,259
114,467
113,027
111,832
108,162
531,764
475,336
382,432
611,037
445,591
328,374
261,289
203,931
158,093
130,785
375,967
175,266
100,649
67,115
71,117
51,183
72,437
36,349
27,918
22,267
10,053
4,584
10,277
4.801

2,625
10,702
23,788
37,618
57,507
77,345
91,679
108,513
120,454
127,184
273,143
241,569
182,008
129,433
179,536
109,057
71,114
59,555
52,751
48,299
39,194
38,121
34,145
30,007
131,359
95,837
66,065
87,406
52,811
34,550
24,926
16,731
12,636
9.207
26,025
8,553
5,875
2,362
1,896
1,154
1.208
206
165
124
28
14

Payments o f tax
on 1945
due a t
declara­ time o f
tio n 21/ f i l i n e
738
3,137
5,174
7,871
9,444
11,455
12,214
14,073
15,324
15,986
31,838
27,658
26,160
24,762
47,361
47,196
55,760
56,880
61,283
61,927
62,188
62,039
63,569
63,443
330,810
313,963
262,910
436,290
332,789
249,680
200,969
160,676
125,399
105,256
506,913
146,296
85,217
57,649
62,291
44,376
64,353
33,497
25,921
21,050
9,798
4,506
8,700
4.825

715
2,817
4,371
5,996
7,709
9,339
10,123
10,685
11,179
10,783
23,420
20,793
18,209
16,331
25,926
22,484
22,821
21,975
22,066
21,400
21,235
20,378
21,194
21,266
100,802
90,557
69,669
110,576
76,193
55,428
43,611
32,600
25,099
20,103
57,495
25,336
14,109
8,773
8,354
6,998
7,912
5,066
1,994
1,335
280
264
1,577

9,907,762 7,388,897 2,719,481 4,181,414 1,135,346

1,803
1,692
6,389
5,076
4,006

9/34,954,520 1,450,011
9/16,828,192

d o lla rs ) _

and money f i
Medical,
I Jfisce lTotal
d en tal,
| Laneous
deductions
deduc­
e t c .,
expenses 28/ tions 29/

2,169
10,549
15,898
22,879
30,420
36,936
41,811
47,132
49,146
54,015
104,798
85,605
61,486
42,595
63,003
40,779
29,444
25,062
22,484
20,461
17,735
16,543
15,265
13,847
60,655
45,077
32,396
45,155
30,660
20,634
15,820
11,826
9,131
7,288
21,288
10,296
5,431
3,699
3,919
3,078
3,556
1,535
1,605
871
489
47
172
570

4,000
14,245
24.469
33,932
42,919
50.897
54,863
59,921
61,076
63,267
126,796
100,928
73,105
47,698
69,882
42,452
31,350
25.897
23,338
21,129
18,288
16,674
15,434
14,103
60,573
44,478
31,980
46,124
30,833
22,660
18,025
14,414
12.469
9,960
30,865
15,078
9,103
6,512
6,409
4,750
7,619
4,009
4,250
2,482
1,518
121
1,568

34,778,501 1,423,586

§/292,472
21,235
102,291
96,483
75,438

Seduction Tar
oases
from f i r e ,
n terest 25/ Taxes 26/ storm,
e tc . 27/

-

-

4,766
1,021
2,927
2,883
2,091
6.916

18,688
831
757
900
691
3.055

20.604

24.902

153,275

955,776 1,053,223

5,538,536 29,749,964

649,559

108,873

798,658

614,153

3,367,413 13,794,760

533,980

285, 22(

For fo o tn o te s, see pp, 21-22; fo r extent to which data are estim ated, see pp. 5-6,

599,821

44>40C

137,138

439,072

2,171,123 15,955,204

1,738,33

1,480,638 1,504,1?!
5,908,258 1,235,91

647,345

45.505

696,88C 1,249,380

8,912,15

2,452
7,917
13,232
18,066
22,709
26,010
27,671
29,565
32,014
30,242 1
58,386 1
44,140 1
29,635 1
19,196 1
25,559 1
13,331 1
13,772 1
12,038 1
11,167 1
9,367 2
8,151 2
7,510 2
7,074 2
6,555 2
31,208 2
25,021 2
16,212 2
23,235
16,202 2
11,284
8,218
6,076
5,041
3,781
11,466
4,920
2,552
1,669
1,423
1,345
1,035
420
162
242
52
24

23,453
1,853
3,663
3,783
2,780
9.973

335,980 10,650,493 7,388,897 2,740,08! 4,206,315 1,135,34!

411,65^

- —1

ment (re­
fund, or
c re d it on
1946 tax)

692,850

230,735

152,47!

406,738 !

3 ,9 7 5 ,58C

982,87!

286,112

Table 3. - In d ivid u a l returns fo r 1945, by taxable and nontaxable returns and by adjusted gross income c la ss e s : Frequency distribuUOTi o f returns fo r each s p e c ific
source o f Income or loss comprising adjusted gross Income, fo r each type o f ta x payment, and fo r ta x overpayment

I T o tal
number

S a la rie s |Dividends \AnnulanH
Iand/or
( tie s
wages
in te re s t j and

dju s ted gross income
la sse s 1/
Thousands o f d o lla rs )

3
4

5

6
7
8
9

10

111
12
13
14

!p e n sio n s

xable in d ivid u a l returns:
0*5 under 0*75
0*75 under 1
1 under 1*25
1*25 under 1*5
1*5 under 1*75
1.75 under 2
2 under 2*25
2*25 under 2*5
2*5 under 2*75
2*75 under 3
3 under 3*5
3*5 under 4
4 under 4«5
4.5 under 5
5 under 6
6 under 7
7 under 8
8 under 9
9 under 10
10 under 11
11 under 12
12 under 13
13 under 14
14 under 15
15 under 20
20 under 25
25 under 30
30 under 40
40 under 50
50 under 60
60 under 70
70 under 80
80 under 90
90 under 100
100 under 150
150 under 200
200 under 250
250 under 300
300 under 400
400 under 500
500 under 750
750 under 1,000
1.000 under 1,500
1,500 under 2,000
2.000 under 3,000
3.000 under 4,000
4.000 under 5,000
5.000 and over

2,024,406
2,818,413
3,398,136!
3,642,872i
3.602,265
3,573,4661
3,308,650 !
3,039,531
2,767,9821
2,484,1871
4,024,307j
2,713,135
983, 337
889, 652
430, 755
252, 895
177 315
134 856
104 454
80 430
66 519
55 891
46 052
155
83 22s
45 ,966
49 771
24 ,485
13 ,418
B,441
5,448
3,601
2,587
5,530
1,726
738
407
333]
195
193
65
39
19
7
2
3
1

1,717,442
2,400,336}
2,956,450
3,225,239
3,230,313
3,240,685
3,027,8391
2,796,456
2,554,922
2,293,746
3,726,621!
2,454, 34li
1,466,416
845, 42l!
6S5, 689
294, 825:
150, 836
99 475
72, 395
56 062
40 805
34 020
27 877
22 077
76 244
40 892
22 796
24 ,525
12 ,149
6,710

108,464 35^9, 930
565!
169,923
21,958'
196,846
22,951!
210,198
13,758:
223,107
10,537!
253,892
251,134! 15,778’,
266,361I 14,344!
11,917!
258,966
242,7471 11,144!
454,7091 16,882j
347,458t 11,917 !
253,779 ¡35/9^709'.
197,616 33/6,951!
285,776 33/8,276'.
174,4421^6,069!
U7,S20|
4,010!
I
87,047
2,3961
70,501!
1,884!
57,276!
1,502 !
45,827!
1,253
38,563|
1,025!
33,418i
1,038 !
28,357j
3,411,
101,268.
2,085!
58,084!
33,534!
1,241!
1,4951
37,752!
737!
19,U S !
497!
10,843!
353 !
7,022!
250 ;
4,607!
174!
3,089!
117!
2,230!
332!
1,578!
6851
3o!
386!
30:
310,
11;
189
14 i
191
8i
64
3;
38
3:
19
1:
7
1
3
-!
1

2,754!
1,843.1
1,332.
2,927I
987!
422|
250
201
119
123
43
29
16
4
1
z
.1
---------------- !
42,650,502 37,668,852j4,659,872
_______________Ì--------------r ----------------

T o ta l, taxable in d ivid u a l
returns

4,929!

111!

changes o f prop­
e rty other than
c a p ita l assets
capr
Net
gain

¡Sales or exchanges

Met
gain

14,013j
76,577 35/8,716 227,521
18,426 324,950 | 20,964 j
121,374
24,164
139,470! 21,958 384,312
27,805 i
159,882' 31,999 387,291
37,737 360,147! 28,689!
166,232
44,025 337,084 ! 28,468
172,902
48,550 302,548 ! 27,696 !
132,722
26,592"
46,563 273,969
186,364
48,661! 233,2531 21,958
174,777
51,528! 219,239! 20,633
176,212
80,658
297,363
54, 066 !
221,779
32,880
149,508
35/7,502
24,937
106,034
10,151
27,364
124,349
35/6,290
13,902
70,173
8,516
48,105
6,425
5,114 j
28,256
3,994
21,631
3,055
18,155
14,215|
2,785
2,261
12,780
1,875
10,676
7,234
36, 35l!
3,906!
20,413!
2,280 !
10,915!
2,494!
12,172!
1,397!
6,158!
777
3,452t
494!
2,1461
352!
1,447!
259Î
956!
162!
760!
444!
1,595!
152!
71,
38!
134)
20!
132!
371
13 i
80!
31 i
68
5!
30*
9.
n;
5l
6i
li
3;
-■
”1
1!
2!
1;
-

30,344135/1,213
46,454 ¡35/2,979
55,390 ® 4 , 745
56,163135/4,414
57,4871^/3,972
63,4461^/3,199
62,894

35/

98,754

35/l,6 5 5 i(3 2 )

/2,648
/ l , 986
/3*752135/2,648 55/9,158
13,572
/4,524 ¡35/3,420
12,358
/ 3 ,530 (33/2,648
/ 3 ,1 9 9 « V 3 ,5 3 0
12,248
/4, 303 ¡33/2,537! 3 ^ 9 ,4 9 0 j 116,
'
/2,869! 10,483
/6,179, 18,206
/4,745
16,993
/3.640
15,117
/ 2 ,317 ! 12,247
,641
16,883
3,089) 12,026
1,660|
9,610
1,157 !
7,394
1,140
6,191j

/2,869 !

m

16,477
14,313
50,189
29,468
17,259

1,748

10,906

647

5,551

11,782

3,766
2,433
1,5761
1,141 !

111

30

o f ta x
due a t
time o f
filin g

ment (re­
fund, or
c re d it on
1946 tax)

464,530
727,030
904,565
1,017,113
1,089,716
1,139,699
1,054,188
989,966
877,860
818,276
1,434,300
1,050,424
729,889
476,990
521,009
290,069
173,114
124,814
96,013
74,990
58,701
48,265
40,733
33,927
112,741
61,329
33,825
36,507
17,750
9,711
6,160
4,012
2,555
1,859
3,938
1,185
509
286
234
124
137
41
29
14
5

1,530,305
2,047,247
2,437,298
2,570,920
2,441,269
2,357,412
2,185,942
1,993,071
1,838,703
1,630,823
2,538,480
1,629,389
882,718
491,895
358,493
134,836
75,312
49,217
56,708
27,907
20,476
17,216
14,341
11,454
40,438
20,941
11,651
12,735
6,507
3,585
2,221

1,400
1,021

710
1,557
526
225
115
97

2

646,143j 4,624,358! 358,786!l,357,52oj

246,64112, 612,265

&

tio n o f
estimated
ta x 21/

655 fe / 3 ,3 1 0
/
33y/ 9,048 35i/1,

35,075:

j

21,731

110,610
86,332
31,681
18,349
22.182

ll,8 4 z !
35/7,800j
35/3,463!
33/Z.600!
35/2.3481

132,266
83,281
34,740
22,096
19.602

292,229

28,782j

313,716

23,075 (sz)

181,792

31,230

5,452,051
! 1,064) 084
!
306,238
i
185,423
92.693

4,974,735
'817'434
206,134
129,089
61,269

T o ta l, nontaxable
in d iv id u a l returns

j 7,282,281

6,219,891

Grand t o t a l

[ 49,932,783 :43,888,743 4,952,101

275,423; 3 ,125,981

47,292,456 |42,196,118 3,727,429

234,123! 2,644,962

9

Taxable returns w ith adjusted
gross income under $5,000
and nontaxable returns
Taxable returns with adjusted
gross Inorane o f $5,000
and over ____________________________
PP .

Partnership

62,882

84,202¡1,583,347, 345,524:

279,033 1,666,274 36,229,438(5,881,580 14,529,137 27,425,322

*

fontaxable Individual
returns: 51/
No adjusted gross
income 5/
Under 0 .5
0 .5 under 0.75
0.75 under 1
1 under 1.25
1.25 and over

For footnotes,

Business or
prof e 3 S io n

tTet
p r o fit

O
00

1
2

|

Rents and
ro y a ltie s

2,640,327 j 1,692,625 1,224,672

14,588!35/6,702j 147,531;
14,588]
•
16,000; 329,221; 40,680!
35/8.024! 167,586j 10,312!
33/
3^409* 79,848;35/6,447!
35/3.409
“ 1 4 0 ,4 8 7 |W 3 ,7 2 7;
33/2,063
20.267,35/3.289 :
33/2.465

1 481, 019!

41,300;

597,253 4,595/93
95,439

15,380;

15,7191

15,22! 35/1,846

11,136 (32)

i
I 14,356
35/5,184! 32,426;

35/3,017
27,514
132)
16,134: 33/ 1, 242 j 16,209 35/8,047
' 35/8,686;33/3,388 35/1,180 ( 32)
35/7,906: JZZ)
(32)
33/ 6, 629| 33/ 2,359
33/4,806 (32)
(32)
35/4,071 35/1,164 35/3.176:35/2.655 (32)

T32)

64,351

46,549
692,692 5,276,269

35/3,920

570,572 1 ,421,871 108,247 1 ,6 71,192
518,970

923,123

83,626 1,128,566

51,602

498,743

24,621

542,626

391,561
275,876

12,826

35/4,926

50,558

SO

123,004
33,105
12,167
35/8,982
55/4,618

55,315
30,880
16,688
35/7,593
™ 12,114

4,915,379
761,450
196,778
117,837
55,648

SI

152,046

6,097,650

56

186,802

5,971,213

52
53
54
55

35/6, 342

16,825

83,288

79,707

291,859 1,853,076 42,200,651 6,033,626 14,529,157 33,522,972

57

65,263

60,074

181,317 1,706,177 40,625,349 4,328,669 12,774,546 32,673,120

58

18,025

19,633

110,542

849,852

59

146,899

1,575,302 1,704,957

1,754,591

-J___

___ I____ L__

for extent to -which data are estimated,

Number o f r e t u r n s , a d ju ste d

Table 4 , - In d iv id u a l re tu r n s fo r 1945, by ta x a b le and n on tax a b le r e t u r n s , by a d ju ste d gro ss income c la s s e s , and by type o f ta x* Number o f r e t u r n s , a d ju ste d
g ro ss incom e, su r ta x exem p tion , ta x l i a b i l i t y b e fo re and a f t e r c r e d i t s , t a x c r e d i t s , average t a x , and e f f e c t i v e t a x r a te
(A d ju sted gro ss in co

A d ju ste d gro ss income c la s s e s JL/

1
2

3
4

5
6
7

8

9

10

11
12
13
14
IS

16
17
18
19
20

21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55

raxable individual returns*
0*5 under 0*75
0*75 under 1
1 under 1*25
1.25 under 1*5
1*5 under 1.75
1*75 under 2
2 under 2*25
2*25 under 2*5
2*5 under 2*75
2*75 under 3
3 under 3*5
3*5 under 4
4 under 4*5
4*5 under 5
5 under 6
6 under 7
7 under 8
8 under 9
9 under 10
10 under 11
11 under 12
12 under 13
13 under 14
14 under 15
15 under 20
20 under 25
25 tinder 30
30 under 40
40 under 50
50 under 60
60 under 70
70 under 80
80 under 90
90 under 100
100 under 150
150 under 200
200 tinder 250
250 tinder 300
300 tinder 400
400 under 500
500 under 750
750 under 1,000
1.000 under 1,500
1,500 tinder 2,000
2.000 under 3,000
3.000 under 4,000
4.000 tinder 5,000
5.000 and over
T o ta l, taxable in d ivid u a l returns
Nontaxable in d ivid ual returns:
No adjusted gross income 5/
Under 0*5
0*5 under 0*75
0.75 under 1
1 under 1*25
1*25 and over

3.1/

56

T o ta l, nontaxable in d iv id u a l returns

57

Grand to ta l

58
59

Taxable returns with adjusted gross in ­
come under $5,000 and nontaxable returns
Taxable returns with adjusted gross
inoome o f $5,000 and over_________________________

Total
number
of
returns

Adjusted
gross
income 2/

Amount o f
surtax
exemp­
tion 20/

in thousands o f d o lla r s )

e p t average ta x

g la s s e s and money f i g

Total
tax
before
cre d its

Credits TÒSTI
tax a fte r
for
cre d its 3/
foreign
tax paid
and tax
paid a t
source

Average I
to ta l
tax 36/1

Amount of
surtax
exemp­
tio n 20/

Adjusted
gross
income 2/

Number
of
returns

E ffe ctiv e
tax rate
(percent)
based on
adjusted
gross
income

1,652,011
2,568,618
3,302,308
3,759,005
3,852,626
3,975,875
3,928,482
3,936,592
3,789,067
3,561,434
6,009,483
4,228,870
2,524,121
1,489,850
1,291,616
589,308
332,010
231,360
171,604
134,463
102,360
84,038
70,226
57,147
187,237
83,477
40,567
39,272
17,792
8,680
4,966
3,026
1,750
1,227
2,249
573
218
106
63
36
39
27
10
5
*

E ffe c tiv e
Normal tax Average
tax rate
and surtax normal
(percent)
tax and
a fte r
c re d its 3/ surtax 36/ based on
adjusted
gross
income

C redits
fo r
foreign
tax paid
and tax
paid a t
source

Normal tax
and surtax
be fore
cre d its

27,585
110,828
221,210
354,723
472,334
599,465
659,033
686,089
707,998
717,009
1,391,253
1,178,338
871,849
635,840
.727,282
473,358
351,329
298,555
269,649
242,783
214,800
201,897
190,840
175,756
736,606
481,042
329,328
456,597
296,908
197,640
146,268
110,054
77,555
64,670
163,792
67,387
34,891
21,687
17,498
14,340
19,172
18,105
10,135
8,199

3
5
9
8
33
36
99
81
86
59
53
44
46
44
74
113
173
181
63
78
122
278
100
106
710
577
369
152
358
117
198
81
351
363
212
117
48
52
31
62
40
66
•
91
1
•

2,024,406
2*818,413
3,398,136
3,642,872
3^602^265
3^573^466
3,308,650
3,039,531
2,767,982
2,484,187
4^024,307
2*713^136
1^629Ì488
983i 337
889,652
430^753
252,895
177,315
134,856
104^454
80,430
66^519
55,891
46,052
155^308
83^229
45,966
49^771
24,483
13^418
8,441
5^448
3^601
2^587
5^570
1^726
738
407
333
195
193
65
39
19
7
2
3
1

1,322,903
2^471,433
3^834,189
5,005,373
5,845,469
6,692,418
7*022,363
7,213,675
7,261,329
7,133,274
13*017,492
10,125,025
6,892,942
4,649,038
4,826,976
2^779^434
1^888^235
1*501^203
1^277*388
1^094,124
923,312
829^48$
753^545
666^679
2,668^955
1,853,715
1,254,327
1^708^973
1,089,366
*731^520
544,726
406,852
304,660
245,041
661,464
295,289
163,463
110,845
115,585
86,447
114,603
55,1*1
46,214
31,910
16,806
7,042
13,795
7*617

1,652,011
2,558,618
3,302,308
3,759,005
3,852,626
3,975,875
3,928,482
3,936,592
3,789,067
3,561,434
6,009,483
4,228,870
2,524,121
1,489,850
1,291,616
589,308
332,010
231,360
171,604
134,463
102,360
84,038
70,226
57,147
192,702
103,069
55,552
58,77?
28,051
15,125
9,231
5,835
3,789
2,642
5,429
1,629
699
363
307
183
181
56
34
16
10
4
6
1

27,585
110,828
221,210
354,723
472,334
599,465
659,033
686,089
707,998
717,009
1,391,253
1,178,338
871,849
635,840
727,282
473,358
351,329
298,555
269,649
242,783
214,800
201,897
190,840
176,756
775,934
620,670
467,486
706,885
497,542
356,515
279,979
216,949
167,344
138,111
388,533
180,568
101,857
68,245
72,213
51,861
73,082
37,321
28,084
22,418
10,119
4,602
10,432
4,801

3
5
9
8
33
36
99
81
86
59
53
44
46
44
74
113
173
181
63
78
122
278
100
105
75?
854
635
718
931
435
536
436
535
456
571
240
179
148
148
309
180
261
166
151
66
18
155

27,582
110,823
221,201
354,715
472,301
599,429
658,934
686,008
707,912
716,950
1,391,200
1,178,294
871,803
635,796
727,208
473,245
351,156
298,374
269,586
242,705
214,678
201,619
190,740
175,651
775,181
619,816
466,851
706,167
496,611
355,878
279,443
216,513
166,809
137,655
367,962
180,328
101,678
68,097
72,065
51,552
72,902
37,060
27,918
22,267
10,053
4,584
10,277
4,801

*14
39
65
97
131
168
199
226
256
289
346
434
535
647
817
1,099
1,589
1,683
1,999
2,324
2,669
5,031
3,413
3,814
4,991
7,447
10,156
14,188
20,284
26,522
33,105
39,742
46,32?
53,210
70,156
104,477
137,775
167,314
216,411
264,369
377,731
570,154
715,846
1,371,947
1,436,143
2,292,000
3,425,667
4,801,000

2.08
4.48
5.77
7.09
8.08
8.96
9.38
9.51
9.75
10.05
10.69
11.64
12.65
13.68
15.07
17.03
18.60
19.88
21.10
22.18
23.25
24.31
25.31
26.35
29.04
33.44
37.22
41.32
45.59
48.65
51.30
53.22
54.75
56.18
58.65
61.07
62.20
61.43
62.75
59.6?
63.61
67.21
60.41
69.78
59.82
65.10
74.50
63.03

2,024,406
2,818,413
3,398,136
3,642,872
3,602,265
3,573,466
3,308,650
3,039,531
2,767,982
2,484,187
4,024,307
2,713,135
1,629,488
983,337
889,652
430,753
252,895
177,315
134,856
104,454
80,430
66,519
55,891
46,052
148,979
65,250
32,779
31,863
14,349
7,242
4,259
2,651
1,585
1,147
2,186
592
225
113
72
45
42
27
12
6
1

1,322,903
2,471,433
3,834,189
5,005,373
5,845,469
6,692,418
7,022,363
7,213,675
7,261,329
7,133,274
13,017,492
10,125,025
6,892,942
4,649,038
4,826,976
2,779,434
1,888,235
1,501,203
1,277,388
1,094,124
923,312
829,486
753,545
666,679
2,549,993
1,447,282
881,485
1,090,441
637,145
394,123
274,295
197,655
133,752
108,235
259,455
100,625
49,629
30,683
24,287
19,824
24,861
22,761
14,010
10,311
•7,617

1

"
4,801

-

42,650,502

117,561,661

52,116,149

17,061,152

10,774

17,050,378

400

14.50

42,562,017

113,305,774 52,023,376

15,055,476

181,792
5,452,051
1,064,084
306,238
185,423
92,693

.8/292,472
T.498,401
599,184
267,458
201,383
173,044

222,433
4,057,636
1,045,932
407,661
267,918
123,678

-

-

-

"
“

-

-

7,282,281

9/2,446,998

6,125,246

-

-

-

-

-

-

-

49,932,783

9/120,008,659

58,241,394

17,061,152

10,774

17,050,378

341

14.21

-

47,292,456

9/90,955,921

54,693,585

8,633,554

606

8,632,948

183

9.49

2,640,527

29,074,738

5,547,811

8,427,598

10,168

8,417,450

3,166

28.95

For fo otn otes, see pp.21-221 fo r extent to which data are estim ated, see pp. 5-6,

_

.
-

•

27,582
110,823
221,201
364,715
472,301
599,429
658,934
686,008
707,912
716,950
1,391,200
1,178,294
871,803
635,796
727,208
473,245
351,156
298,374
269,586
242,705
214,678
201,619
190,740
175,651
736,896
480,465
328,959
455,445
296,570
197,523
146,070
109,973
77,202
64,307
163,580
67,270
34,843
21,635
17,467
14,278
19,132
18,039
10,044
8,198
*
"

*14
39
65
97
131
168
199
226
256
289
346
434
535
647
817
1,099
1,389
1,683
1,999
2,324
2,669
3,031
3,413
3,814
4,940
7,363
10,160
14,294
20,668
27,276
34,297
41,484
48,708
56,065
74,831
113,632
154,858
191,460
242,597
317,289
455,524
668,111
837,000
1,366,335

4,801

"
4,801,000

5,869

15,049,607

354

*
*
*

•
-

•
”
“
•
•

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

• -

*

-

-

*

-

-

-

*

•

-

“
-

.
*
-

.
*
*
*

*

ft
*
•

2.08
4.48
5.77
7.09
8.08
8.96
9 .38
9.51
9 .75
10.05
10.69
11.64
12*65
13.68
15.07
17.03
18.60
19.88
21.10
22.18
23 .25
24.31
25 .31
26.35
28.86
33.20
57.32
41.77
46.55
50.12
53.25
55.64
57.72
59 .41
63.05
66.85
70.21
70.51
71.92

1
2
5
4
5

6
7

8

9
10

11
12

13
14
15
16
17
18
19

20
21
22

23
24
26
26
27
28
29
30
31
52

53

34
35
36
3T
38
39
72*02 40
76.96 41
79.25 42
71.69 43
79.51 44
46
46
47
63.03 48
15.28

49

50
51
52
53
54
- “ j 55
-

56

_____________i . 57
-

58
59

Table 4 . - In d iv id u a l returns fo r 1945, by tax a b le and nontaxable r e tu r n s , by adjusted ?ro ss income c la s s e s , and by type o f t a x : Number o f r e tu r n s , ad ju sted
gross incom e, su rta x exem ption, ta x l i a b i l i t y before and a f t e r c r e d it s , ta x c r e d it s , average ta x , and e ffe c t iv e tax r a te _ continued
____________(Adjusted gross Income c la s s e s and money fig u r e s , except average t a x , in thousands o f d o lla r s )
A djusted 1 Net
gross
] income
income 2 / j

Number
of
return s

A dju sted gross income c la s s e s y

Ì
Taxable in d iv id u a l re tu rn s:
Under 15
20

Q0 inviar 10O
100 iindAf 150
150 iimHap 200
200 ìnviflr 260
260 under 300
300 under 400
400 under 500
500 under 750
750 under 1,000
1,000 under 1,500
1,500 under 2,000
2,000 under 3,000
3,000 under 4,000
4,000 under 5,000
5,000 and over

!

T o ta l, taxa b le in d iv id u a l returns

Excess o f
n e t lon gterm c a p ita l
g a in over
n et s h o r tterm c a p it a l
lo ss

6,329
17.979
13.587
17,908
10,134
6,176
4,182
2,797
2,016
1,440
3.344
1.1341
613
294
261
150
151
38 I
27
13 J
7J
2'
3
.

118,962
406.433
372.842
618,532
452,221,
337,397
270,431
209,197
170,908
136,806
402.009
194.664
113,834
80,162.
91,298
66,623
89,742
32,380
32,204
21,599
16,806
7,042
13,795
-

88,485 j 4,255,887

113,260j
378,170*
342,058’
566,512;
412,256)
305,907|
244,712)
188,450)
153,363)
122,298J
356,449 ;
171,902
99,004
68,6881
80,067)
57,174'
77,379
27,978
27,456;
18,906)
14,605j
6,855*
11,899*
•J
3,845,348;

1___________________________________________________________________
For fo o tn o te s , see pp

21 - 22 s fo r e x te n t to which data are estim ate d , see p p . 5 - 6 ,

A lte r n a tiv e tax
Amount o f
1
before c r e d its
surtax e x - 1
50 percent
emption 20/ | P a r t ia l
t ta x
o f excess
»
o f n e t long­
! term c a p ita l
!
g a in
i
i

j

_

5,465*
19,592»
14,995
19,501*
10,659)
6,445|
4,266
2,809*
2,039)
1,415*
3,180)
1,056;
481*
258*
244|
147)
142;
29)
24J
Ili
10)
4!
6!

35,682)
122,082j
116,561'
209,872)
167,342j
132,915;
111,487;
88,854
74,094'
60,266*
181,375;
86,732;
49,863;
33,020)
37,343)
22,509;
34,981;
12,080;
9,907 ;
10,561;
6,260;
2,651]
9,668)
—I

3,646
17,546
21,597
41,416
33,292
25,757
22,224
18,041
15,697
13,175
43,366
26,449
17,103
13,538
17,367
15,012
18,929
7,136
8,042
3,658
3,859
1,951
7S4
*

92,774)
779,116 ;
_______________L

1,615,111j

389,565

---------------- '
■

£0
40
40 i ^tìHax* 50

I
!
I
I
?
[
I
1
»
!
1
1
<
1

j
;
*
j
j
j
!

7,292
35,091
43,193
82,831
66,583
51,513
44,448'
36,081
31,393
26,350
86,732
52,898
34,206
27,075
34,733 )
30,023
37,868
14,271
16,083
7,315
7,718
3,901
1,528
!

C re d its
fo r
fo re ig n
ta x paid
and ta x
paid a t
source

43'
277
266
566
593
318
338
355
184
93
359
123
131
96
117
247
140
195
75
150
66
18
155
" L——
4,905

\

E ff e c t iv e
ta x r a te
(p ercen t)
based on
a d ju sted
gross
income

Average
a lt e r n a tiv e
ta x 36/

1 A lte r n a tiv e
ta x a ft e r
| c r e d it s 3/
1
|
!

39,286
139,351
13.7,892
250,722
200,041
158,365
133,373
106,540
89,607
73,348
224,382
113,058
66,835
46,462
54,598.
37,274
53,770
19,021
17,874
14,069
10,053
4,584
10,277
"
2,000,771

$6,207
7,751
10,149
14,001
19,740
25,640
31,892
38,091
44,448
50,936
67,100
99,698
130,283
158,034
209,188
248,493
356,093
500,553
662,000
1,082,231
1,436,143
2,292,000
3,425,667

33.02
34.29
36.98
40*54
44.24
46*93
49.32
50.93
52*43
53*61
55*82
58.08
58.71
57.96
59.80
55*95
59.92
58.74
55*50
65*14
59*82
65.10
74.50

22,611

47.01

-

i
Table 5 . - In d iv id u a l return s w ith adjusted gross income fo r 1946, by S ta te s and T e r r it o r ie s : Number
o f r e tu r n s , s a la r ie s and w ages, dividen ds and in t e r e s t , ad ju sted gross income, and ta x l i a b i l i t y

S ta te s and T e r r ito r ie s
Alabama
Arizona
Arkansas
C a lifo r n ia
Colorado
C on n ecticu t
Delaware
D i s t r i c t o f Columbia
F lo rid a
Georgia
Hawaii
Idaho
Illin o is
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
M assachusetts
M ichigan
M im e sots
M is s is s ip p i
M issouri
Montana
Nebraska
Nevada
New Hampshire
New Je r s e y
New Mexico
New York
North C a ro lin a
North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Isla n d
South C a ro lin a
South Dakota
Tennessee
Texas
Utah
Vermont
V ir g in ia
Washington 89/
West V ir g in ia
W isconsin
Wyoming

For fo o tn o te s , see p p .

(Money fig u r e s in thousands o f d o lla r s )
Dividends
S a la r ie s
Number
and
and
of
in t e r e s t 11/
wages 10/
return s

Adjusted
gross
inoome 2/

lia b il-

605,871
184,246
810,517
4,088,251
403,785
887,399
107,709
886,412
690,505
7 5 1 ,5e6
190,431
180,678
3,471,774
1,338,572
837,040
638.076
636,487
635,463
311,807
873,857
1,858,647
2,273,787
992,060
298,510
1,308,035
185,907
460.076
65,174
194,999
1,981,047
140,033
6,063,750
842.838
175,955
2,953,643
571,796
518,109
3,872,854
315,963
400.838
192,316
695,825
1,988,628
214,841
113,448
817,140
959,667
545,803
1,209,941
82,206

1,005,172
306,597
450,727
7,627,973
648,317
1,772,426
213,520
798,563
1,130,429
1,219,880
391,715
242,236
6,871,964
2,422,706
959,856
850,988
1,031,595
1,013,947
480,335
1,729,895
3,793,012
4,652,483
1,496,765
430,145
2,138,336
269,575
568,442
124,201
312,929
4,300,718
196,942
12,864,324
1,237,817
160,235
5,929,656
879,812
956,926
7,484,445
595,291
619,616
176,872
1,150,967
3,207,261
387,454
159,096
1,374,006
1,827,428
1,028,532
2,067,926
143,777

18,216
10,698
10,670
379,199
34,615
113,628
30,619
37,053
72,405
41,200
12,670
6,019
261,182
65,464
44,513
22,570
27,687
34,759
28,445
77,996
205,437
142,349
59,928
11,261
99,752
7,960
19,259
7,915
20,400
171,419
5,734
779,349
46,813
5,061
208,827
22,055
22,817
324,297
35,027
13,238
5,634
29,713
97,171
7,515
11,072
51,521
42,545
19,204
73,546
4,489

1,210,859
426,052
592,339
10,989,863
949,265
2,178,897
299,012
993,047
1,669,373
1,646,107
522,070
376,559
9,026,694
3,160,005
1,775,146
1,348,436
1,294,558
1,360,598
618,253
2,148,457
4,594,761
5,748,698
2,146,778
570,868
2,820,759
409,214
980,087
177,485
392,882
5,225,042
294,776
16,816,795
1,623,637
350,589
7,287,283
1,211,284
1,314,582
9,187,829
742,636
765,464
347,498
1,413,075
4,492,619
474,067
214,858
1,709,765
2,329,276
1,143,302
2,713,484
198,750

134,976
55,000
68,216
1,764,266
131,725
341,246
62,637
158,284
256,002
186,806
84,330
41,488
1,369,845
404,739
209,777
165,636
145,151
171,090
72,621
301,693
665,426
804,959
273,639
65,496
378,768
48,520
123,919
30,566
47,393
737,972
34,844
2,743,072
181,173
36,705
1,015,220
137,486
193,654
1,275,957
108,643
78,998
34,801
173,584
609,637
51,680
24,229
210,710
328,913
113,312
337,027
25,603

49,769,196

91,693,821

3,880,616

120,183,733

17,005,431

21-22 1 fo r e x te n t to which data are e stim a te d , see p p . 5 -6 .

Table 6 . - Taxable fid u cia r y returns fo r 1945, by t o t a l income cla e se si Number o f retu rn s, income or lo s s from each o f the sources comprising t o t a l income,
t o t a l income, deductions, balance income, amount d istr ib u ta b le to b e n e fic ia rie s , net income, su rtax exemption, and ta x l i a b i l i t y

T o tal income c la sses 40/

Total
number
of
returns

Dividends
Trade or
Rents and
and
ro y a ltie s 15/ business 42/
inter­
e st 41/
Net

taxable fid u c ia r y returns:
Under 0 .5
0 .5 under 0.75
S 0.75 under 1
1 under 1.25
4
1*25 under 1 .5
5
1*5 under 1*75
6
1.75 under 2
7
2 under 2*25
8
2.25 under 2«5
9
2.5 under 2.75
2.75 under 5
5 under 3*5
12
3*5 under 4
15
4 under 4 .5
14
4.5 under 5
15
16
5 under 6
6 under 7
17
7 under 8
18
8 under 9
19
9 under 10
20
10 under 11
11 under 12
22
12 under 13
25
13 under 14
24
14 under 15
25
15 under 20
26
20 under 25
27
28 25 under 30
30 under 40
29
50 40 under 50
50 under 60
51
60 under 70
%« 70 under 80
80 under 90
90 under 100
100 under 150
150 under 200
200 under 250
250 under 300
300 under 400
400 under 500
500 under 750
750 under 1,000
1.000 under 1,500
1,500 under 2, 000
2.000 under 3,000
3.000 under 4,000
4.000 under 5,000
5.000 and over

1
2

10
11

21

52

7,509
9,426
8,225
7,154
5,955
5,381
4,424
4,029
3,625
3.300
2,992
5,046
4,295
3,744
3,033
5,112
5.886
3,178
2,560
2,198
1.886
1,526
1.301
1,086
987
3,618
2,090
1,436
1,694
879
585
330
266
190
140
314
140
66
S3
37
20
22
14
5
4
2

I,
3,110
3,737
4,226
4,385
4,833
4,537
4,702
4,747
4.915
4,862
9,263
8.916
8,771
8,204
16,338
14,567
13,274
12,535
II,
11,095
9.916
9,280
8,118
7,818
54,708
24,714
20,956
30,172
19,773
14,913
10,783
10,525
8,530
6,456
19,368
11,442
7,736
7,654
5,691
3,200
4,938
5,432
2,417
2,450
279

455,555

77,954

80,785

55,626

372,767

For fo o tn o te s, see pp. 21-22,

207577
1,093
1,270
1,303
1,237
1,217
1,211
1,136
1,139
1,088
1,043
1,942
1,827
1,856
1,615
3,022
2,425
2,382
1,781
2,034
575
1,820
1,501
1,262
1,316
1,242
5,555
4,518
3,144
4,646
4,090
2,714
2,181
1,801
1,031
1,063
3,508
1,184
1,127
555
111
785
2,435
676
115
(33)

Net

19
10
508
36
32 ' 586
623
28
693
55
660
24
630
35
611
27
605
57
586
27
591
21
39 1,009
933
24
28 1,061
794
25
60 1,482
64 1,278
49 1,191
38 1,002
956
44
972
39
855
18
648
24
672
24
678
12
84 2,489
46 1,814
57 1,645
69 1,742
171 1,276
S3 1,475
652
53
502
8
964
29
874
5
49 1,001
14 1,975
435
10
282
45
6
503
394
29
20

6
28
42
20
22
27
29
16
27
Ì4
8
SO
10
40
7
41
24
50
26
38
21
21
55
20
1
100
68
51
56
130
40
IS
37
80
13
66
38
10
28
40
(33)

Net

Net

Net

Net

60
157
210
341
226
511
293
266
331
249
329
661
962
765
687
1,427
1,458
1,614
1,506
1,439
1,642
1,534
1,267
1,559
1,288
5.809
4,799
4,672
6,264
4,037
4,321
2,206
1,803
1,563
556
1.810
1,419
397
490
824
151
1

7
1,342

Net

46
287
7
73
806
3
70
1,084
8
62
1.354
2
53
1,326
4
62
1,419
1
45
1,546
4
40
1,462
5
53
9 1,460
33
1,507
2
64
1.482
4
54
2,842
9
71
2,823
8
56
2,889
12
54
2,552
3
96
5,070
12
63
8
4,753
16
57
4,570
47
1 4,270
40
4,219
11
33
3,641
5
3.354
38
15
31
3,209
4
28
5 2,626
2,934
23
19
107
23 12,327
69
8,982
52
52
7
7,891
60
30 13,198
38
9,498
43
6,989
2
14
4,835
19
4.482
12
3,675
8
3,888
(S3)
20
14 11,278
7
7,623
5
4,849
4
5,421
;
5,114 (33)
1
4,137
(S3)
1
5,598
2
5,774
4,044
2,875
4,050

*1
20
32
25
28
25

SI
27
26
28
15
42
53
46
28
S3
38
34
50
59
53
29
26
49
22
111
43
54
31
53
65
6
3
2
79
1
(33)
2

4

(35)

2
15
13
18
12
37
5
8
9
5
25
16
13
11
16
18
18
17
19
2
20
2
7
26
7
47
16
57
80
55
24
4
38
23
11
22
14
1
7
(33)
36
13

Income
from
fid u c ia ­
r ie s 44/

32
104
142
135
140
132
131
155
160
85
118
279
252
248
232
337
300
358
268
360
177
203
514
191
131
714
643
498
1,124
221
732
369
506
327
100
145
244
202
2

(S3)

1

T o ta l, taxable fid u cia ry 115,560
returns
Taxable fid u c ia r y returns
with t o t a l income under
$5,000
Taxable fid u cia r y returns
with t o ta l income o f

Net

S ales or
exchanges
o f property
other than
c a p ita l
a sse ts 17/
Net
Net
loss

S ales or
exchanges
o f c a p ita l
a sse ts 16/

Partner­
ship 43/

79,206 1,520 39,034
19,184

426

9,909

60,020 1,092 ¡29,126

i_

1,358 61,706
326

5,848

1,032 55,856

308 199,793 1,754
81

24,619

227 Ï75,174

23
252
259
181
268
270
213
310
278
263
290
457
433
394
434
507
534
588
446
325
469
332
357
243
237
1,211
1,212
579
1,615
640
688
373
186
197
357
399
217
34
61
518
431
7
35
7
87

2,134
5,895
7,156
8,034
8,180
8,716
8,280
8,575
8,611
8,640
8,608
16,327
16,052
15,883
14,445
27,990
25,176
23,802
21,706
20,814
19,730
17,628
16,264
14,670
14,289
62,561
46,494
39,253
58,497
39,185
31,735
21,313
19,708
16.145
13,259
37,417
24,030
14,749
14,382
12,513
8,912
15.145
11,894
6,574
6,755
4,529

6
20
42
51
61
80
S3
71
76
71
60
119
144
142
111
226
209
212
155
182
153
112
157
149
125
564
424
385
624
382
347
281
286
166
247
362
271
231
139
398
206
165
88
17
7
8

48

6.161

2

36
102
195
233
251
258
255
241
260
233
224
423
410
395
373
672
608
587
510
488
484
39S
401
357
328
1,395
1,066
845
1,320
870
767
576
480
412
308
833
304
402
223
235
131
390
48
94
16
8
(33)

87
188
259
356
365
364
404
420
431
406
429
757
750
733
769
1,265
1,112
1,101
903
858
860
744
700
611
602
2,727
2,031
1,709
2,489
1,481
1, 359
1,053
1,111
737
467
1,730
928
728
542
631
295
399
229
284
165
8
111

2,925
1,502
1,360
904
1,265
652
955
365
394
188
24

2,005
5,586
6,660
7,394
7,503
8,014
7,568
7,842
7,845
7,930
7,894
15,028
14,748
14,615
15.189
25,826
23,247
21,901
20,158
19,287
18,255
16,378
15,006
15,554
13,234
57,875
42,973
36,295
54,064
36,452
29, 2B1
19,402
17,83Î
14,830
12,238
34,492
22.528
13,389
13,478
11,249
8,280
12.190
11.528
6,180
6,567
4,306

113

128
309
496
640
677
702
712
735
768
710
714
1,299
1,304
1,270
1,253
2,163
1,928
1,901
1,548
1,527
1,498
1,251
1,258
1,116
1,054
4,686
3,521
2,940
4,435
2,733
2,453
1,910
1,877
1,315

1,0a

229
655
1,022
1,424
1,787
2,121
2,174
2,423
2,482
2,621
2.734
5,363
5, 393
5,512
4,997
10,346
9.430
8,432
8,416
7,535
7.430
6,832
6,023
5,774
5,207
24,563
18,588
15,424
a , 744
15,260
12,206
8,924
7,397
5,848
5,818
15,633
9,714
5,254
5,824
3,992
2,830
5,317
4,393
2.735
3,607
194

Net in ­
case 51/
(taxable
to the
fid u c i-

1,777
4,930
5,658
5,971
5,716
5,893
5,394
5.419
5,361
5,309
5,160
9,665
9,355
9,301
8,192
15,480
13,817
13,469
11,743
11,752
10,805
9,545
8.982
7,780
8,027
33,512
24,385
20,869
32,sa
21,192
17,076
10,479
10,433
8.982
6.420
18,859
12,814
8,135
7,654
7,257
5,450
6,875
7,155
3,445
2,959
4,112

6.048

2.196

3.852

64,475 792,118

313,624

478,495

1,214

789

10,777

17,038

856,594

8,363

19,441

36,671

43i

205

2,525

4,505

145,554

1,107

5,889

6,718

11,715 133,817

40,737

93,081

785

584

8,449

12,738

711,060

7,260

15,553

29,950

52,760 658,298

272,886

385,412

836 ;

1

919

Amount
i is c e lT o tal Balance d is tr ib ­
lü s c e llaneous Total in ­
deduc­ income u table
come 46/ In te re st] Taxes 48/ laneous
in ­
to
tions
50/
deduc­
47/
come 45/
b e n e fition s 49/

j

Amount
Tax
of
lia b il­
surtax
exemp­
i t y 3/
tio n 52/

7a
3,025
2,687
2,157
1,723
1,520

i,as
1,078
937
829
746
1,245
1,027
884
722
1,142
867
695
560
472
400

as

271
237
209
770
453
289
349
170
124
74
55
44
SO
67
54
17
9
10
4

241
442
676
882
914
1,000
955
997
1,016
1,034
1,018
1,956
1.960
1,983
1,777
3,482
3,210
3,279
2,927
3,058
2,876
2,686
2,532
2,253
2,405
10,654
8,655
8,109
13,736
9,738
8.391
5,343
5,503
4.961
5,401
10,452
7.391
4,840
4,415
4,273
8,136
4,022
4,088
1,916
1,493
2,062

1
2
5
4
5
6
7

8
9

10

11
12

IS

14
15
16
17
18
19
20

a
22

25
24

25
26
27
28
29
50
51

52

3.467

55
54
55
56
57
38
59
40
41
42
45
44
45
46
47
48
49

28,156 175,605

50

16,8a

51

7,656 158,754

52

2

1
1
1
(33)

20,504

-

21

-

FOOTNOTES

V Adjusted gross income classes are based on the
amount of adjusted gross income (see note 2 ), regardless
of the amount of net income or net deficit when computed;
returns -with adjusted gross deficit are designated "No
adjusted gross income" and the size of the deficit is
disregarded*
2/ Adjusted gross income means gross income minus
allowable trade and business deductions, expenses of
travel and lodging in connection with employment, reim­
bursed expenses in connection with employment, deductions
attributable to rents and royalties, certain deductions
of life tenants and income beneficiaries of property held
in trust, and allowable losses from sales or exchanges
of property. Should these allowable deductions exceed
the gross income, there is an adjusted gross deficit.

y Tax liability after deducting tax credits relat­
ing to income tax paid at source on tax-free covenant
bond interest and to income tax paid to a foreign coun­
try or possession of the United States. (Credits are
reported on individual returns, Form 1040, with itemized
deductions and on fiduciary returns, Form 1041.)
y This class includes the nontaxable returns with
$1,500 and over adjusted gross income.
§/

Returns with no adjusted gross income are returns
showing adjusted gross deficit (see note 2 ); that is,
returns on which the deductions allowable for the compu—
. tation of adjusted gross income equal or exceed the gross
income.

y

Less than 0.005 percent.

y

Not computed.

y

Adjusted gross deficit.

9/ Adjusted gross income less adjusted gross deficit.
10/ Salaries and wages include annuities, pensions,
and retirement pay not reported in the schedule for annu­
ities and pensions, but exclude wages not exceeding $100
per return from which no "tax was withheld, reported as
other income on Form flf-2 (see note 19 ).
11/ Dividends, domestic and foreign; interest on
notes, bank deposits, mortgages; interest on corporation
bonds and taxable and partially tax-exempt Government ob­
ligations before amortization of bond premium; and divi­
dends on share accounts in Federal savings and loan as­
sociations. Also includes the partially tax-exempt in­
terest on Government obligations after amortization and
partially tax-exempt dividends on share accounts received
through partnerships and fiduciaries. Excluded from
this item are the dividends and interest not exceeding in
total $100 per return, reported as other income on
Form 17-2. (See note 19.)
12/ Income from annuities and pensions is only the
taxable portion of amounts received during the year.
Amounts received to the extent of 3 percent of the total
cost of the annuity are reported as income for each tax­
able year, until the aggregate of amounts received and
excluded from gross income in this and prior years equals
the total cost. Thereafter, entire amounts received are
taxable and must be included in adjusted gross income.
Annuities, pensions, and retirement pay upon which tax is
withheld may be reported in salaries and wages.
15/ Net profit from rents and royalties is the excess
of gross rents received over deductions for depreciation,
repairs, interest, taxes, and other expenses attributable
to rent income; and the excess of gross royalties over de­
pletion and other royalty expenses. Conversely, net loss
from these sources is the excess of the respective expenses
over the gross income received.
14/ Net profit from business or profession is the
excess of gross receipts therefrom over deductions for
business expenses and the net operating loss deduction
due to the unabsorbed net operating loss from business,
partnership, and common trust funds for the two preced­
ing years. Conversely, net loss from business is the
excess of business expenses and net operating loss de­
duction over total receipts from business.
15/ Partnership net profit or loss excludes partially
tax-exempt interest on Government obligations,partially
tax-exempt dividends on share accounts in Federal savings

and loan associations, and net gain or loss from sales of
apital assets. In computing partnership profit or loss,
charitable contributions are not deductible nor is the
net operating loss deduction allowed.
16/ Net gain from sales or exchanges of capital assets
is tEe amount taken into account in computing adjusted
gross income whether or not the altematiye tax is im­
posed; net loss from such sales is the amount reported
as a deduction in computing adjusted gross income. Each
is the result of combining net short-term and long-term
capital gain and los3 and the capital loss carry-over
from 1942, 1943, and 1944. Deduction for the loss, how­
ever, is limited to the amount of such loss, or to the
net income (in case of individual returns, adjusted gross
income if taxed under Supplement T) computed without re­
gard to gains and losses from sales of capital assets,
or to $1,000, whichever is smallest. Sales of capital
assets include worthless stock, worthless bonds if they
are capital assets, nonbu3 iness bad debts, certain dis­
tributions from employees* trust plans, and each parti­
cipant's share of net short- and long-term capital gain
and loss to be taken into account from partnerships and
common trust funds.
17/ Net gain or loss from sales or exchanges of
",
property other than capital assets is that from sales of
(1 ) property used in trade or business of a character
which is subject to the allowance for depreciation,
(2) obligations of the United States or any of its pos­
sessions, a State or Territory or any political subdivi­
sion thereof, or the District of Columbia, issued on or
after March 1 , 1941, on a discount basis and payable
without interest at a fixed maturity date not exceeding
one year from date of issue, and (3) real property used
in trade or business.
18/ Income from estates and trusts excludes partially
tax-exempt interest on Government obligations' and div­
idends on share accounts in Federal savings ,and loan
associations; such income is reported in interest and div­
idends. The net operating loss deduction is allowed to
estates and trusts and is deducted in computing distrib­
utable income.
19/ Miscellaneous income includes alimony received,
prizes, rewards, sweepstakes winnings, gambling profits,
recoveries of bad debts for which a deduction was taken
in a prior year, and health and accident insurance re­
ceived as reimbursement for medical expenses for which
deduction was taken in a prior year. Also tabulated as
miscellaneous income is $51,194,155 of wages not subject
to withholding, dividends, and interest, not exceeding
in total $100 per return, reported as other income on
969,832 returns, Form ’7-2.
20/ Surtax exemption is $500 for the taxpayer, $500
for "£he taxpayer's spouse if not dependent upon another
person, and $500 for each dependent with respect to whom
the surtax exemption may be claimed. Such dependents
must have received from the taxpayer more than half their
support for the year and must have had less than $500
gross income during the year. Dependents include only
close relatives which are specified by law.
21/ Payments on 1945 declaration of estimated tax,
in table 2 , include the credit for overpayment of prior
year tax as well as the aggregate payments made on the dec­
laration, Form 1040—ES. The frequency of returns, in
table 3, includes returns showing credit only, cash pay­
ments only, and returns showing both.
22/ Returns with standard deduction are optional returns,
Form w-2; short-form returns, Form 1040, with adjusted
gross inccnte; and long-form returns,.Form 1040, with ad­
justed gross income of $5,000 or over on which the $500
standard deduction is used.
25/ Returns with itemized deductions are long-form
returns, Form 1040, on which deductions are itemized; longform returns, Form 1040, with no deductions filed by spouses
of taxpayers who itemized deductions; and returns, Form 1040,
with no adjusted gross income whether or not deductions are
itemized.
24/ Contributions, reported on returns with itemized
deductions, include the taxpayer's share of charitable con­
tributions of partnerships, but cannot exceed 15 percent of
the adjusted gross income.

FOOTNOTES - CONTINUED

25/ Interest, reported on returns with itemized deduc­
that paid on personal debts, bank loans, or home
mortgages, but excludes interest on business debts reported
in schedules for rentsand business, and interest on loans
to buy tax-exempt securities, single-premium life insurance,
or endowment contracts*

tions]^ 1*

26/ Taxes paid, reported on returns with itemized deduc­
personal property taxes, State income taxes,
real estate taxes except those levied for improvements which
tend to increase the value of property, and certain retail
sales taxes. This deduction does not include Federal income
taxes; estate, inheritance, legacy, succession, or gift
taxes; taxes on shares in a corporation which are paid by
the corporation without reimbursement from the taxpayer; tax­
es deducted in the schedules for rents and business; income
taxes paid to a foreign country or possession of the United
States if any portion thereof is claimed as tax credit; or
Federal social security and employment taxes paid by or for
the employee*

tions]^ include

27/ Losses resulting from fire, storm, shipwreck, or other
casualty, or theft, reported on returns with itemized deduc­
tions, are the actual nonbusiness loss sustained, that is,
the value of such property less salvage value and insurance
or other reimbursement received.
28/ Medical and dental expenses, reported on returns
with itemized deductions, paid for the care of the taxpayer,
his spouse, or dependents, not compensated by insurance or
otherwise, which exceeds 5 percent of the adjusted gross
income* This deduction is limited to $1,250 if one exemp­
tion is claimed, or to §2,500 if two or more are claimed.
29/ Miscellaneous deductions, reported on returns with
itemized deductions, include alimony payments, expenses in- .
curred in the production or collection of taxable income or
in t he management of property held for the production of tax­
able income, amortizable bond premium, special deduction for
the blind, the taxpayer's share of interest and real estate
taxes paid by a cooperative apartment corporation, and gamhUn g losses not exceeding gambling gains reported in income*
50/ Net deficit reported on nontaxable returns with item­
ized deductions. The total number of returns showing net
deficit is 216,745, of which 181,792 show no adjusted gross
income, and 34,953 show adjusted, gross income of various
amounts and itemized deductions of larger amounts•
51/ Nontaxable returns are those with no adjusted
gross income and returns with adjusted gross income
which when reduced by deductions, standard or item­
ized, and exemptions results in no tax liability*
The 496,248 nontaxable returns with adjusted gross
income and with itemized deductions include 34,953
returns with net deficit*
32/ Number of returns is subject to sampling
variation of more than 100 percent. Neither the number
of returns nor the data associated with such returns
are shown separately since they are considered too un­
reliable for general use; however, they are included in
totals* For description of sample, see pages
35/ Less than $500.
54/ Includes 969,832 returns, Form W-2, showing other
income consisting of wages not subject to withholding,
dividends, and interest not exceeding in total $100 per
return.

55/ Number of returns is subject to maximum sampling
variation of 30 to 100 percent, depending on the number
in the cell. For description of sample, see pages
36/ Average tax is based on the tax liability after
deducting the two tax credits relating to income tax paid
at source on tax-free covenant bond interest and to income
tax paid to a foreign country or possession of the United
States. Such credits are allowed only on returns with item­
ized deductions.
57/ Returns with normal tax and surtax consist of
(1) returns, Form W-2, and short-form returns, Form 1040,
wherein optional tax is paid in lieu of normal tax and surtax^
and (2) long-form returns, Form 1040, on which the regular
normal tax and surtax, or normal tax only, are reported,
that is, « n taxable long-form returns except those on which
the alternative tax is imposed (see note 58).

58/ Returns with alternative tax are long-form returns,
Form “1040, wherein (1) the net income includes an excess of
net long-term capital gain over net short-term capital loss,
and (2 ) the alternative tax is less than the regular normal
tax and surtax computed on net income which includes net
gain from sales of capital assets. Alternative tax (not
effective on returns with surtax net income under $16,000)
is the sum of (1 ) a partial tax computed at regular normal
tax and surtax rates on net income reduced for this purpose
by the excess of net long-term capital gain over net short­
term capital loss, and (2 ) fifty percent of such excess.
59/ Includes Alaska.

40/ Total income classes are based on the amount of
total income tabulated for taxable fiduciary returns (see
note 46).
41/ Dividends, domestic and foreign, and interest on
notesy mortgages, bank deposits, corporation bonds before
amortization of bond premium,taxable and partially taxexempt interest on Government obligations after amortization
of bond premium, and dividends on share accounts in Federal
savings and loan associations. Also includes Government
interest and partially tax-exempt dividends on share accounts
received through partnerships and fiduciaries.
42/ Net profit or loss from trade or business is the
current year profit or loss. (Net operating loss deduction
is reported in miscellaneous deductions.)
45/ Partnership net profit or loss excludes taxable
and partially tax-exempt interest on Government obligations,
partially tax-exempt dividends on share accounts in Federal
savings and loan associations, and net gain or loss from
sales of capital assets. In computing partnership profit
or loss, charitable contributions are not deductible nor is
the net operating loss deduction allowed.
44/ Income from fiduciaries excludes taxable and partially
tax-exempt interest on Government obligations, and partially
tax-exempt dividends on share accounts in Federal savings
and loan associations. Net operating loss deduction is allow­
ed to estates and trusts and is deducted in computing dis­
tributable income.

45/ Miscellaneous income includes taxable income from
sources other than those specified on the return form.
46/ Total income is the sum of the positive items of
income minus the net loss from rents and royalties, the
net loss from trade or business, the net loss from partner­
ship, and the net losses from sales of capital assets and
of property other than capital assets. (Total income is
an approximation of the adjusted gross income tabulated
for individual returns in this report.)
47/ Interest is that paid on debts, mortgages, and bank
loans; it does not include interest reported in schedules
for business or rent income, nor interest on indebtedness
incurred to buy tax-eXempt securities, single-premium life
insurance, or endowment contracts.
48/ Taxes paid include State income taxes, certain retail
sales taxes, and real estate, taxes except those levied for
improvement which tend to increase the value of property.
This deduction for taxes does not include Federal income tax­
es; taxes on shares in a corporation which are paid by the
corporation without reimbursement from the taxpayer; taxes
deducted in the schedules for business and rent income; nor
income taxes paid to a foreign country or possession of the
United States if any portion thereof is claimed as a tax
credit.

49/ Miscellaneous deductions include the net operating
lossdeduction, amortizable bond premium on corporation bonds
losses resulting from fire, storm, shipwreck, or other cas­
ualty or from theft, not covered by insurance or otherwise,
and other authorized deductions for which no separate pro­
vision is made on the return form.
50/ Balance income is the amount of income before the
deduction for the amount distributable to beneficiaries; it
is the excess of total income over total deductions.
51/ Net income taxable to the fiduciary is the net income
after subtracting from the balance income the amount dis­
tributable to beneficiaries.
Surtax exemption is $500 for an estate; $100 for a

r

Secretary Snyder today issued the following
statement:
i
am highly pleased with the President’s
appointment of Mrs. Georgia Neese Clark to the post
of 'treasurer of the United States.
^Mrs. Clark is an experienced and successful
businesswoman and will ably fill the position to
which she has been appointed.
t^I consider this appointment in proper recog­
nition of the prominent role that women are now
playing in the public life of our Nation. //

TREASURY DEPARTMENT
Information Service

WASHINGTON, D .C .

IMMEDIATE RELEASE
Monday. June 6, 1949

S-2021

Secretary Snyder today issued the following statement:

“I am highly pleased with the President’s appointment
of Mrs. Georgia Neese Clark to the post of Treasurer of the
United States.
“Mrs. Clark is an experienced and successful business*woman and will ably fill the position to which she has been
appointed.
“I consider this appointment in proper recognition of
the prominent role that women are now playing in the public
life of our Nation.”

0 O0

-3Mgji
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 115> of the
Revenue Act of 19kl, 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 betYfeen 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 thé return is made* as
ordinary gain or loss.
Treasury Department Circular No. lfL8* as amended* and this notice* prescribe
the terms of the Treasury bills and govern the conditions of their issue.
of the circular may be obtained from any Federal Reserve Bank or Branch.

Copies

-

2

-

amount of Treasury bills applied for, unless the tenders are accompanied by an
express guaranty of payment by an incorporated baric or trust company.
Immediately after the closing hour, tenders will be opened at the Federal
Reserve Banks and Branches, following which public announcement m i l be made by
the Secretary of the Treasury of the amount and price range of accepted bids.
Those submitting tenders m i l be advised of the acceptance or rejection thereof.
The Secretary of the Treasury expressly reserves the rigntto accept or reject
any or all tenders, in whole or in part, and his action in any such respect shall
be final.

Subject to these reservations, non-competitive tenders for $200,000 or

less without stated price from any one bidder will be accepted in full at the
average, price (in three decimals) of accepted competitive bids.

Settlement for

accepted tenders in accordance with the bids must be made or completed at the
Federal Reserve Bank on

June 16,

19h9

>

±n

casl£l or

Immediately avail

able funds or in a like face amount of Treasury bills maturing
Cash and exchange tenders ’/fill receive equal treatment.

June

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, ¿ULt or oth

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 btaoe, or any of
the possessions of the United States, or by any local taxing authority.

For

StóddxddìDdc

/
IflSr RELEASE, MORNING 1OTSPAPERS,
Friday, June IO, 19h9»

¿ D

3-<i_

The Secretary of the Treasury, by this public notice, invites tenders for
$ 900,000,000

, or thereabouts, of

91

in exchange for Treasury bills maturing

-day Treasury bills, for cash and
June ló, 19U9

-

__ , to De issued on

a discount basis under competitive and non-competitive bidding as hereinafter
provided.
wall mature
interest.

The bills of this series will be dated

June 16, 1 9h9

> and

September 15, 19li9 > when the face amount wiul be payable witnout
They will be issued in bearer form only, and in denominations of

$1,000* $5,000, $10,000, $100,000, $500,000, and $1,000,000 (maturity value).
Tenders will~be received at Federal Reserve Banks and Branches up to the
Daylight Saving
closing hour, two o !clock p.m., Eastern/^yag^iessl time, Monday, June 13. 19li9____ •
“i B r
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
RELEASE, MORNING NEWSPAPERS,
Friday, June IQ, 1949»______

WASHINGTON, D .C .

3-2022

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 June 16, 1949* to be issued on a
discount basis under competitive and non-competitive bidding as hereinafter
provided# The bills of this series will be dated June 16, 1949, and will
mature September 15, 1949, when the face amount will be payable without
interest* 1 They will be issued in bearer form only, and in denominations of
$1,000, $5,000, $10,000, $100,000, $500,000, and $1,000,000 (maturity value)#
Tenders will be received at Federal Reserve Banks and Branches up to
the closing hour, two o*clock p*m., Eastern Daylight Saving time, Monday,
June 13, 1949* Tenders will not be received at the Treasury Department,
Washington# Each tender must be for an even multiple of $1,000, and in.the
case of competitive tenders the price offered must be expressed on the
basis of 100, with not more than three decimals, e. g#, 99*925* Fractions
may not be used. It is urged that tenders be made on the printed forms
and forwarded in the special envelopes which will be supplied by Federal
Reserve Banks or Branches on application therefor#
Tenders will be received without deposit from incorporated banks and
trust companies and from responsible and recognized dealers in investment
securities# Tenders from others must be accompanied by payment of 2 percent
of the face amount of Treasury bills applied for, unless the tenders are
accompanied by an express guaranty of payment by an incorporated bank or
trust company.
Immediately after the closing hour, tenders will be opened at the
Federal Reserve Banks and Branches, following which public announcement will
be made by the Secretary of the Treasury of the amount and price range of
accepted bids. Those submitting tenders will be advised of the acceptance
or rejection thereof* The Secretary of the Treasury expressly reserves the
right to accept or reject any or all tenders, in whole or in part, and his
action in any such respect shall be final. Subject to these reservations,
non-competitive tenders for $200,000 or less without stated price from any
one bidder will be accepted in full at the average price (in three decimals)
of accepted competitive bias* Settlement for accepted tenders in accordance
with the bids must be made or completed at the Federal Reserve Bank on
June 16, 1949, in cash or other immediately available funds or in a like
face amount of Treasury bills maturing June 16, 1949* 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, hs such, under-the
Internal Revenue Code, or laws amendâtoty 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 anÿ
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 Codé, 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 con­
sideration' as. capital assets* Accordingly,* the owner of Treasury bills
(other than life insurance companies) issued hereunder need include in
his income tax return only the difference between the price paid* for
such bills, whether on original issue or on subsequent purchase, and the
amount actually received' either upon sale or redemption at maturity
during the taxable, year for which the return is made, as ordinary gain
or 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 Fédéral
Reserve Bank or Branch*
.
."

oOo-

t

3

The Securities and Exchange Commission does not make a determination as to
the worth of a security offered for sale. It is not the function of the
Commission to approve or disapprove any sale of securities so long as the
facts concerning the securities are fully stated.
With respect to the International Bank, it may be stated that through
its quarterly and annual reports and other statements, it makes a full
disclosure to the public of all its activities. Moreover, under the pro­
posed legislation, the Bank would be required to file with the Securities
and Exchange Commission such annual and other reports with regard to its
securities as the Commissioh shall determine to be appropriate * Finally,
if the Securities and Exchange Commission should at any time be of the
opinion that the interest of ihe United States investor requires that the
securities
the International Bank be subjected to the Securities Acts,'
the Commission May, in consultation with the National Advisory Council,
suspend the exemption granted under the proposed legislation.
In my opinion, the enactment of the proposed legislation will further
the interest the United States has in the continued effective operation of
the International Bank without prejudicing the rights of United States
investors, I, therefore, recommend favorable action on the bill under
consideration,

o 0 o —

u 2 -

At the present time, although national banks may invest in securities
issued by the International Bank, they are not authorized under the National
Bank Act to deal in such securities. The proposed legislation would remove
this legal disability by amending the National Bank Act to permit national
banks to deal in securities issued by the International Bank.
Both the International Bank and the National Advisory Council believe
that in order that this permission may be really effective in broadening
the market for the Bank’s securities they should be exempted from the
Securities Acts* The reason is that the whole marketing'system of national
banks is geared to deal only in securities which are exempt from the
Federal Securities Acts, mainly federal, state, and municipal securities;
and it is not adapted to meet the various requirements pertaining to
securities subject to those Acts. The proposed legislation would meet
this practical difficulty by amending the Bretton Woods Agreements Act to
make the securities issued or guaranteed by the International Bank exempt
securities under the Securities Acts.
In connection with the enactment of the proposed legislation, careful
thougit has been given to the position of investors in the United States.
I believe that the unique characteristics of thè securities of the Inter­
national Bank and the nature of the safeguards provided in the proposed
legislation constitute ample protection.
It should be noted that by virtue of the large subscription of the
United States in the shares of the International Bank, there is a corre­
spondingly large official participation by the United States in the direc­
tion of the Bank. Under the guidance of the National Advisory Council, the
United States Executive Director, who holds approximately one— third of the
total votes of the Bank’s Executive Board, directs his activities to
effectuating the United States policy of making the Bank a sound, strong,
effective instrumentality for financing appropriate projects for reconstruc­
tion and development. In this connection, it may be noted that the Inter­
national Bank may not sell its securities in this country without obtaining
the prior consent of the National Advisory Council; nor can the Bank buy or
deal in its securities without that consent.
It should also be borne in mind that the securities of the Inter­
national Bank are backed by the joint obligation of some AS nations, each
of which is severally liable up to the full amount of its subscription.^ A
nation which might otherwise be tempted to default on a particular foieign
obligation might well be deterred from such action by the knowledge that a
default to the International Bank is simultaneously a default with respect
to 4 7 other nations upon whom the burden of meeting prorated subscription
calls would fall.
Adverting to the protection the United States investor enjoys with
respect to foreign securities which are not exempted from the Securities
Acts, it may be appropriate to note that the essence of this protection
is the requirement for full and fair disclosure of pertinent information.

TREASURY DEPARTMENT
Wáshipgtoh
j cAiN^*
Statement by Assistant Secretary of V pd Treasury
William McC. Martin, Jr., before the^Banking and^
Currency Cnrnmi titre nf thn H'n~iirri
ti> jn ^
'ulj
mi n f n, Q 3 ~ 7 "to amend the National Bank Act and
the\Bretton Woods Agreements Act, and for other
purposes
s & t ilV /

I°/

10 A.M«

1949

Mr, Chairman and Members of the Committee?
I am appearing before your Committee On behalf of the National
Advisory Council on International Monetary and Financial -Problems^to present its views
which the Committee is now_ considering*_The
D
i
n
wouia
amena
Tine
National
Bank Act to permit national banks to deal in
«■""Dill would amendtne
the bonds of the International Bank, and would, by amendment to the Bretton
Woods Agreements Acts,exempt securities issue#or guaranteed by the
International Bank from the provisions of the Securities Acts* The Nation 1
Advisory Council has given serious consideration to the proposed legislatio
and believes that it should be enacted*
With your permission, I would like to address myself to the policy
considerations underlying the National Advisory Council’s suppor o
e
pending legislation* .In the opinion of the National Advisory Council,
the International Bank for Reconstruction and Development will have an ..
increasingly important role in the future development of the international
capital market. , It seems clear that, to the extent that economic and^
political conditions abroad permit the Bank to assume greater response
bility in financing reconstruction and development, it is in the ínteres
of the United States to encourage the Bank to assume that responsibility.
During the next few years, it is hoped that many more nations will
be in a position to apply for loans to finance projects j n d programs con­
sistent with the purposes of the Bank* The continued effectiveness of
the International Bank will depend upon its ability to meet these requests.
To do this, the Bank will have to raise additional funds in the securities
market of the United States*
It is the opinion of the National Advisory Council that the enactment
of,II, ftr433P- would facilitate the widespread distribution in the United
h p b ÿ -— grates of securities issued or guaranteed by the International Bank* Fo
a detailed analysis of the structure and operations of the International
Bank, particularly with respect to the effect that the proposed ^ g ^ l a t i o n
would have on its marketing operations,- I will defer to the re presentati
of the Bank who will appear before you.
v

However if I may, I would like to touch briefly upon one of the^
principal problems which will be remedied if the proposed legislation is
enacted* .

v

•

TREASURY DEPARTMENT
Washington

Statement by Assistant Secretary of the Treasury
William McC. Martin, Jr., before the Senate
Committee on Banking and Currency on S. 1664,
Mto amend the National Bank Act and the Bretton
Woods Agreements Act, and for other purposes.u

10 A.M. - June 10, 1949

Mr* Chairman and Members of the Committees
I am appearing, before your Committee on behalf of the National
Advisory Council on International Monetary and Financial Problems to pre­
sent its views on S. 1664, which the Committee is now considering. The
bill would amend the National Bank Act to permit national banks to deal
in the bonds of the International Bank, and would, by amendment to the
Bretton Woods Agreement Acts, exempt securities issued or guaranteed by
the International Bank from the provisions of the Securities Acts. The
National Advisory Council has given serious consideration to the proposed
legislation and believes that it should be enacted.
With your permission, I would like to address myself to the policy
considerations underlying the National Advisory Council's support of the
pending legislation. In the opinion of the National Advisory Council,
the International Bank for Reconstruction and Development will have an
increasingly important role in the future development of the international
capital market. It seems clear that, to the extent that economic and
political conditions abroad permit the Bank to assume greater responsi­
bility in financing reconstruction and development, it is in the interest
of the United States to encourage the Bank to assume that responsibility.
During the next few years, it is hoped that many more nations will
be in a position to apply for loans to finance projects and programs con­
sistent with the purposes of the Bank. The continued effectiveness of
the International Bank will depend upon its ability to meet these requests.
To do this, the Bank will have to raise additional funds in the securities
market of the United States.
It is the opinion of the National Advisory Council that the enactment
of S. 1664 would facilitate the widespread distribution in the United
States of securities issued or guaranteed by the International Bank. For
a detailed analysis of the structure and operations of the International
Bank, particularly with respect to the effect that the proposed legislat
would have on its marketing operations, I will defer to the representatives
of the Bank who will appear before you.
However, if I may, I would like to touch briefly upon one of the
principal problems which will be remedied if the proposed legislation is
enacted.
S-2023

- 2 -

At the present time, although national banks may invest in securities
issued by the International Bank, they are not authorized under the National
Bank Act to deal in such securities# The proposed legislation would remove
this legal disability by amending the National Bank Act to permit national
banks to deal in securities issued by the International Bank*
Both the International Bank and the National Advisory Council believe
that in order that this permission may be really effective in broadening
the market for the Bank’s securities they should be exempted from the
Securities Acts* The reason is that the whole marketing system of national
banks is geared to deal only in securities which are exempt from the
Federal Securities Acts, mainly federal, state, and municipal securities;
and it is not adapted to meet the various requirements pertaining to
securities subject to those Acts# The proposed legislation would meet
this practical difficulty by amending the Bretton Woods Agreements Act to
make the securities issued or guaranteed by the International Bank exempt
securities under the Securities Acts#
In connection with the enactment of the proposed legislation, careful
thought has been given to the position of investors in the United States*
I believe that the unique characteristics of the securities of the I n t e r ­
national Bank and the nature of the safeguards provided in the proposed
legislation constitute ample protection*
It should be noted that by virtue of the large subscription of the
United States in the shares of the International Bank, there is a corre­
spondingly large official participation by the United States'in the direc­
tion of the Bank* Under the guidance of the National Advisory Council, the
United States Executive Director, who holds approximately one-third of the
total votes of the Bank’s Executive Board, directs his activities to
effectuating the United States policy of making the Bank a sound, strong,
effective instrumentality for financing appropriate projects for reconstruc­
tion and development* In this connection, it may be noted that the Inter­
national Bank may not sell its securities in this country without obtaining
the prior consent of the National Advisory Council; nor can the Bank buy or
deal in its securities without that consent*
It should also be borne in mind that the securities of the Inter­
national Bank are backed by the joint obligation of some 48 nations, each
of which is severally liable up to the full amount of its subscription# A
nation which might otherwise be tempted to default on a particular foreign
obligation might well be deterred from such action by the knowledge that a
default to the International Bank is simultaneously a default with respect
to 4 7 other nations upon whom the burden of meeting prorated subscription
calls would fall#
Adverting to the protection the. United States investor enjoys with
respect to foreign securities which are not exempted from the Securities
Acts, it may be appropriate to note that the essence of this protection
is the requirement for full and fair disclosure of pertinent information#

I

~ 3 ~
The Securities and Exchange Commission does not make a determination as to
the worth of a security offered for sale. It is not the function of the
Commission to approve or disapprove any sale of securities so long as the
facts concerning the securities are fully stated*
With respect to the International Bank, it may be stated that through
its quarterly and annual reports and other statements, it makes a full
disclosure to the public of all its activities* Moreover, under the pro­
posed legislation, the Bank would be required to file with the Securities
and Exchange Commission such annual and other reports with regard to its
securities as the Commission shall determine to be appropriate. Finally,
if the Securities and Exchange Commission should at any time be of the
opinion that the interest of the United States investor requires that the
securities of the International Bank be subjected to the Securities Acts,
the Commission may, in consultation with the National Advisory Council,
suspend the exemption granted under the proposed legislation*
In my opinion, the enactment of the proposed legislation will further
the interest the United States has in the continued effective operation of
the International Bank without prejudicing the rights of United States
investors. I, therefore, recommend favorable action on the bill under
consideration*

- o 0 o -

release, mqrninö newspapers,

Tuesday, June 14, 1949.
The Secretary of the Treasury announced last evening that the tenders for
/
v
#900,000,000, or thereabouts, of 91-day Treasury bills to be dated June 16 and to mature
September 15, 1949, which were offered on June 10, were opened at the federal Reserve
Banks on June 13,
The details of this issue are as follows:
Total applied for - fl,657,977,000'
Total accepted
907,337,000. (includes #65,964,000 entered on a non­
competitive basis and accepted in full
at the average price shorn below) *
Average price
- 99*707/ Equivalent rate of discount approx* 1 *158jt per annum
Range of accepted competitive bids:
High
Low

- 99.711 Equivalent rate of discount approx. 1.143^ per annum
- 99.707
"
»
1.159*$ "
(68 percent of the amount bid for at the low price was accepted)

Federal Reserve
District

Total
Applied for

Total
Accepted

Boston
New fork
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco

#

14,059,000
1,370,232,000
28,498,000
8,520,000
4,427,000
13,219,000
110,379,000
5,867,000
5,161,000
28,987,000
11,964,000
56|664|000

# 13,543,000
713,962,000
17,690,000
8,376,000
4,427,000
12,883,000
51,067,000
5,163,000
4,929,000
23,687,000
8,770,000
42.840,000

#1,657,977,000

#907,337,000

TOTAL

sfl

TREASURY DEPARTMENT
WASHINGTON, D .C :

Information Service
REU3ASE, MORNING NEWSPAPERS,
Tuesday, June 14, 1949. -

S-2024

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 June 16 and to mature September 15, 19^9, which were
offered on June 10, were opened at the Federal Reserve Banks on
June 13.
The details of this issue are as follows:
Total applied for - $1,657,977,000
Total accepted
907,337,000 (Includes $65,964,000
entered on a non­
competitive basis and
accepted in full at the
average price shown below)
Average price
- 99*707/ Equivalent rate of discount approx.
1 .158 $ per annum
Range of accepted competitive bids:
- 9 9 .711 Equivalent rate
1.143$
- 99.707 Equivalent rate
1 .159 $

High
Low
(68

of discount approx.
per annum
of discount approx.
per annum

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
$

14,059,000
1 ,3 7 0 ,2 3 2 , 0 0 0

28.498.000
8 ,520,000
4.427.000

13 .219.000
110 ,379,000
5 .8 6 7 . 0 0 0
5 ,1 6 1 , 0 0 0

28 ,987,000
11.964.000
56.664.000
$1,657,977,000

0O0

Total
Accepted
$ 1 3 ,5 4 3 , 0 0 0
7 1 3 ,9 6 2 , 0 0 0
1 7 .6 9 0 . 0 0 0
8 .3 7 6 . 0 0 0
4 .4 2 7 . 0 0 0
1 2 .8 8 3 . 0 0 0
5 1 .0 6 7 . 0 0 0
5 .1 6 3 . 0 0 0
4 .9 2 9 . 0 0 0
2 3 .6 8 7 . 0 0 0
8 .7 7 0 . 0 0 0

42.840.000
$907,337,000

Mr. Banning (Disb*)
Mr. R. D. Barker
Mr* Bartelt
Mr. Batchelder
Mr. Beall
Bookkeeping & Warrants(^30S)
Mr. Brogan (600 Sloane)
Mr. Burdette (1^53)
Miss Burke (3128)
Mr* Cake
Mr. Church
Miss Cullen
Mr. Cunningham7
Mr. Dietrich_______ _
Mr. Dillon
)
Miss Donovan '*'
Mr. Eddy
Mr. Evans (H4l3)
Mrs. Earrell (3^5)
Mr. Eoley
Mr. Gerardi
Mr. Graham
Mr. Greenberg
Mr. Haas
Mr* Handy
Mr. Hard
Mr. Hearst
Mr. Heffelfinger
Miss Hodel
Mrs. Hodges
Mr. Howard
Mr. Hyland (3^-5)
Mrs. Jubb (30*4-5)
Mr, Kilby
Mr. Kicus
Mrs. Degg
*

Mr* Lynch (3 OOO)
Mr. Maxwell
Mr. McDonald
Mrs. McKenna
Mr. Merritt
Mr/ Moore
Mrl Mulvihill (TempooY)
Miss Newcomer (1021)
Mr, Nussear (*4-32*4-)
Mr. Parsons
Mr. Perry
Mr* Peterson
Mr. Eabcn
Mrs. Half (I3 2 W)
Mr. Reeves
Mr. Reichhardt (Sloane)
Mrs. Root
Miss Rousseaux (*4-321)
Mrs. Schceneman
Mr. Schwalm (Walker)
Mr, Slindee
Mr. Smith
Mr* Spingarn (2000)
Mr. Stickney
Mrs. Sweitzer
Mr. Tickton
Mr. Tietjens
Mr. Tomkinson (2202)
Miss Yassar
Mrs. Walker
Mr. Warfield
Mrs. Warneson
Mr. Weber
Mr. Wisecarver (5*4-*4-5)
Mr. Woodson
Mr. Ziegenfus

6 ^ tr*~

Wisecarver*

6/6A ?

m ^

direct
«ad other

E. 0. Barno a

lion of JDCfOStmiKtC

é|

to m u u m w ì

fhe following tranaaetions m n »ai» la ü * a a t »ßi gaaranWad
»•mariti«» ©f th» ù
m
vrm
m
timtm
w
w
?isr«at«»at «a i «th«r
a c c o u n ts

è a in |

tfe »

« o a tfe

f ll

i^ T i

Saia» * * # # »
Furohaa»« * • •
Hit Stila» « « •

(Sgd.) E. 0- Baraôâ

Chief, Division o£ Inv«at©«ata

Wis«c*rv«rt

6/6/h9

TREASURY DEPARTMENT
WASHINGTON, D .C .

Information Service

RELEASE, MORNING NEWSPAPERS,
# M o n d ay«».
_

A- ^ i
S

During the month of AfNÉN., 19^9
market transactions in direct and
guaranteed securities of the Government
for Treasury investment and other acC el/ejcounts resulted 3<n net puffchases of
, Secretary Snyder announced
today.

0 O0

X

TREASURY DEPARTMENT
Information Service

WASHINGTON, D .C .

RELEASE, MORNING NEWSPAPERS,
Wednesday, June 15> 19^-9«

S-2025

During the month of May, 19^9
market transactions in direct and
guaranteed securities of the
Government for Treasury investment
and other accounts resulted in net
sales of $5^,659,950, Secretary
Snyder announced today.

oOo

IMMEDIATE RELEASE
June 1$, 19h9

The Bureau of Customs announced today that the Canadian quota of
795,000

bushels of wheat prescribed in the President's Proclamation

of May 28, 191*1, as modified, is approximately 75 percent filled for
the quota year ending May 28, 1950, b y entries for consumption
authorized as of the close of business on June 15, 19l*9.

IMMEDIATE R E L E A S E ,

Wednesday, June 15» 19^9»

S-2026

The Bureau of Customs announced today
that the Canadian quota of 795,000 bushels
of wheat prescribed in the President's
Proclamation of May 28, 1941, as modified,
is approximately 75 percent filled for the
quota year ending May 28, 1950, by entries
for consumption authorized as of the close
of business on June 15, 19^9*

oOo
/

\

jPARTMENT

TO:

ERVICE
DN 25

ril)Nl4^ 9
[ practice, it is suggested
leased to the press:
Received the sum of
[of Finland, rep§t of interest in
■the Funding Agreement
■count of the semi­

INFORMATION SERVICE
lle under the postponement agreement of May 1, 1941> and $21,132.18 on account
of the semi-annual payment on the annuity due under the
postponement agreement of October 14, 1943*
These payments represent the entire amount due from
the Government of Finland on June 1$, 194&, under these
agreements

Fiscal Assistant Secretary

PARTM ENT
F'“

Äu

st, R V IC E

WASHINGTON 25

rj\)N
Memorandum to Mr. Saxon:

In accordance with our customary practice, it is suggested
that the following information be released to the press:
On June 14th the Treasury received the sum of
$161,422.24 from the Government of Finland, rep­
resenting the semi-annual payment of interest in
the amount of $126,595.00 under the Funding Agreement
of M a y 1,

19235

$13,695.06 on account of the semi­

annual payment on the annuity due under the postpone­
ment agreement of May 1, 1941, and $21,132.18 on account
of the semi-annual payment on the annuity due under the
postponement agreement of October 14, 1943*
These payments represent the entire amount due from
the Government of Finland on June 1 5 , 1 9 4 8 , under these
agreements

Fiscal Assistant Secretary

TO:
MissKell^;

Would you try to obtain the
Secretary *s clearance on the attached M
proposed release?

I it a n n o u n c e d today that it
I >161,422 .24, f r o m the
JJSaxon

Ijcount of that G o v e r n m e n t ’s
States.
f the s e m i - a n n u a l
f $1 2 6 , 5 9 5

u n d e r the

1 9 2 3 : $ 1 3 ,6 9 5 . 0 6

on ac c o u n t

on the a n n u i t y due u n d e r
of M a y 1,

INFORMATION SERVICE

1941,

a nd

le s e m i - a n n u a l p a y m e n t on
s t p o n e m e n t a g r e e m e n t of
O c t o b e r 14,

1943.

T h e s e p a y m e n t s r e p r e s e n t the entire

a m o u n t due from F i n l a n d on June 15,

1948,

u n d e r these

agreements.
A f t e r g i v i n g e f f e c t to this p a y m e n t the i n d e b t e d n e s
of the G o v e r n m e n t of F i n l a n d to the U n i t e d States
amounts

to $ 7 ,9 2 8 ,5 9 8 .9 3 .

0O0

\

The Treasury Department announced today that it
had received a payment of $161,422.24, from the
Government of Finland on account of that Government's
indebtedness to the United States.
The payment consists of the semi-annual
interest in the amount of $ 1 2 6,595 under the
Funding Agreement of May 1 , 1923; $ 1 3 ,6 9 5 . 0 6 on account
of the semi-annual payment on the annuity due under
the postponement agreement of May 1, 1941, and
$2 1 ,1 3 2 . 1 8 on account of the semi-annual payment on
the annuity due under the postponement agreement of
October 14, 1943.

These payments represent the entire

amount due from Finland on June 1 5 , 1948, under these
agreements.
After giving effect to this payment the indebtedness
of the Government of Finland to the United States
amounts to $ 7 ,9 2 8 ,5 9 8 .9 3 .

TREASURY DEPARTMENT
Information Service

WASHINGTON, D .C .

IMMEDIATE RELEASE,
Wednesday, June 15, 1949.

S-2027

The Treasury Department announced today
that it had received a payment of $161,422424,
from the Government of Finland on accouht of
that Government's indebtedness to the United
States,
The payment consists of the semi-annual
interest in the amount of $12o,595 under the
Funding Agreement of May 1, 1923; $13*695*06
on account of the semi-annual payment on the
annuity due under the postponement agreement
of May 1, 1941, and $21,132.18 on account of
the semi-annual payment on the annuity due
under the postponement agreement of
October 14, 1943. These payments represent
the entire amount due from Finland on
June 15, 1948, under these agreements.
After giving effect to this payment
the indebtedness of the Government of
Finland to the United States amounts to
$7,928,598.93.

000

-3-

purooses of taxation the amount of discount at which Treasury hills are originally
sold by the United States shall be considered to be interest.

Under Sections U2

and 117 (a) (1) of the Internal Revenue Code,, as amended by Section 115? of the
Revenue Act of.

1 9 I4.I,

the amount of discount at Yrnich 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 billSj, 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 vail be made by
the Secretary of the Treasury of the amount and price range of accepted aids.
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 r a n au the
average price (in three decimals) of accepted competitive aids.

Settlement for

accepted tenders in accordance with the bids must be made or completed at the
Federal Reserve Bank on

June 23. 19^9

in cash or other immediately avail­

June 23« jffiS
w
Cash adjustments will be

able funds or in a like face amount of Treasury bills maturing
Cash and exchange tenders will receive equal treatment.

made for differences between the par value of.maturing bills accepted in exchange
and the issue price of the new Dills.
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 faxing authority.

For

j&dotici&dl
AfcSfct
TREASURT'LEFARTMENT
fiastd-ngton'"

/

1

QL V

M

x>£

RELEASE, MORNING NEWSPAPERS.

Friday.
June^17* 19^-9»_______
-----^ -----

The Secretary of the Treasury, by this public notice, invites lenders for
$900,000,000

, or thereabouts, of

^l,_-daY Treasury-bills, for cash and

in exchange for Treasury bills maturing

June 2 3 ^ 1 £jfe2,----- 5 to be issue

n

a discount basis under competitive and non-competitive bidding as hereinafter
provided.

, and

The bills of this series will be dated June 23.

will mature

S^tember 22. 19^9

, when the face amount will be payable without

-------------------------y ^ y ------ -------

interest.

They will be issued in bearer form only, and in denominations of

11,000, $5,000, $10,000, $100,000, 1500,000, 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/fifcsxtei time, J tonday, Juffe 20, lgj£--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

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 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

REIÆASE, MORNING NEWSPAPERS,
Friday. June 17. 19^9 •______

Wa s h i n g t o n , d . c .

S-202Ö

The Secretary of the Treasury, by this public notice,
invites tenders for $9 0 0 ,0 0 0 ,0 0 0 , or thereabouts, of 9 1 -day
Treasury bills, for cash and in exchange for Treasury bills
maturing June 23, 19 .
4 9 , to be issued on a discount basis under
competitive and non-competitive bidding as hereinafter pro­
vided. The bills of this series vili be dated June 23, 1949*
and vili mature September 22, 19^9, vhen the face amount vili
be payable vithout" interest. They vili be issued in bearer
form only, and in denominations of $ 1 ,0 0 0 , $ 5 ,0 0 0 , $1 0 ,0 0 0 ,
$1 0 0 ,0 0 0 , $5 0 0 ,0 0 0 , and $ 1 ,0 0 0 , 0 0 0 (maturity value).
Tenders vili be received at Federal Reserve Banks and
Branches up to the closing hour, tvo o ’clock p.m., Eastern
Daylight Saving time, Monday, June 20, 19^9* Tenders vili
not be received at the Treasury Department, Washington. Each
tender must be for an even multiple of $ 1 ,0 0 0 , and in the case
of competitive tenders the price offered must be expressed on
the basis of 1 0 0 , vith 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 forvarded in the special
envelopes vhich vili be supplied by Federal Reserve Banks or
Branches on application therefor.
Tenders vill be received vithout 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 vill be opened
at the Federal Reserve Banks and Branches, folloving vhich public
announcement vill be made by the Secretary of the Treasury of
the amount and price range of accepted bids. Those suomitting
tenders vill 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 vhole or in part, and

2
his action in any such respedt shall "be final. Subject to these
Reservations, non-competitive tenders for $2 0 0 , 0 0 0 or less -with­
out stated price from;any one bidder will be accepted in full
at the average price (in three decimals) of accepted competitive
bids. Settlement for accepted tenders in accordance with the
bids must be made or completed at the Federal Reserve Bank on"
June 2 3 , 1 9 4 9 3 in cash or other immediately available funds or
in a like face amount of Treasury bills maturing June 2 3 , 1949'.
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) (l) of the Internal Revenue Code, as
amended by Section 115 of the Revenue Act of 1941, the amount
of discount at which bills issued hereunder are sold shall not
be considered to accrue until such bills shail.be sold, redeemed
or otherwise disposed of, and such bills are excluded from con­
sideration as capital assets. Accordingly, the owner of Treasury
bills (other than life insurance companies) issued hereunder
need include in his income tax return only the difference
between the price paid for such bills, whether on original, issue
or on subsequent purchase, and the amount actually received,
either upon sale or redemption at maturity during the taxable
year for which the return is made, as ordinary ..gain or loss.
Treasury Department Circular No. 4l8, as amended, and this
notice, prescribe the terms of the Treasury bills and govern
the conditions of ..their,issue. Copies of the circular may b e 1 •
obtained from any Federal Reserve Bank or Branch.

0 O0

Suggested Press Release

9o ^
(j
The Treasury*s "Meritorious Civilian Service Award" was
presented here today to Paul A* Reeves« ohemist in the
Philadelphia office of the Alcohol Tax Chit. The presentation
of the citation and a silver emblem was made by Daniel A.
Bolich, Assistant Commissioner of Internal Revenue, at a
ceremony before officials and associates.
The award was in recognition of consistently superior
work performed by Mr. Reeves, including the preparation of
those chapters of the official Inspector*s Manual of the
Alcohol Tax Chit which relate to the technical and chemical
aspects of the production and testing of alcoholic beverages.
The research and scholarship of Mr. Reeves* s work on
the Manual caused the late Dr. W* V. Linder, Chief Chemist of
the Alcohol Tax Chit, to testify that these chapters of the
Manual were worthy of inclusion in the chemistry textbooks
of any oollege or university.

Although only 38 years old, Mr. Reeves has been engaged
in the alcohol analysis work of the government for 20 years.
He is a native of Watertown, New York, and received a degree
in ohemical engineering in 1930 from Clarkson College,
Potsdam, New York.
The ohemical analysis of alcoholic beverages is a vital
phase of the administration of the alcohol tax laws, both
for the purpose of enforcing regulations on legal beverages,
and also in assisting the prosecution of producers of illicit
beverages.

- 0 -

TREASURY DEPARTMENT
WASHINGTON, D .C

Information Service

IMMEDIATE RELEASE,
Thursday, June 16, 19^9,

S-2029

The Treasury's "Meritorious Civilian Service
Award" was presented here today to Paul A. Reeves,
chemist in the Philadelphia office of the Alcohol
Tax Unit. The presentation of the citation and a
silver emblem was made by Daniel A. Bolich,
Assistant Commissioner of Internal Revenue, at a
ceremony before officials and associates.
The award was in recognition of consistently
superior work performed by Mr. Reeves, including
the preparation of those chapters of the official
Inspector's Manual of the Alcohol Tax Unit which
relate to the technical and chemical aspects of
the production and testing of alcoholic beverages.
The research and scholarship of Mr. Reeves*
work on the Manual caused the late Dr. W. V. Linder,
Chief Chemist of the Alcohol Tax Unit, to testify
that these chapters of the Manual were worthy of
inclusion in the chemistry textbooks of any college
or university.
Although only 38 years old, Mr. Reeves has been
engaged in the alcohol analysis work of the government
for 20 years. He is a native of Watertown, New York,
and received a degree in chemical engineering in 1930
from Clarkson College, Potsdam, New York.
The chemical analysis of alcoholic beverages
is a vital phase of the administration of the
alcohol tax laws, both for the purpose of enforcing
regulations on legal beverages, and also in assisting
the prosecution of producers of illicit beverages.

0 O0

-

2

-

2 f 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 ary 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 hereunder must be made on or
before July 1, 19U9, or on later allotment, and may be made only in Treasury Cer­
tificates of Indebtedness of Series F-*19U9> maturing July 1, 19li9, which will be
accepted at par, and should accompany the subscription. The full year’s interest
on the certificates Surrendered will be paid to the- subscriber following accept­
ance of the certificates.
V.

GENERAL PROVISIONS

!• As fiscal agents of the United States, Federal Reserve Banks are author­
ized and requested to receive subscriptions, to make allotments on the basis and
up to the amounts indicated by the Secretary of the Treasury to the Federal Re­
serve Banks of the respective Districts, to issue allotment notices, to receive
payment for certificates allotted, to make delivery of certificates on full-paid
subscriptions -allotted, and they may issue interim receipts pending delivery of
the definitive certificates.
2. The Secretary of the Treasury may at ary time, or from time to time,
prescribe supplemental or amendatory rules and regulations governing the offering,
which will be communicated promptly to the Federal Reserve Banks.

JOHN W. SNYDER,
Secretary of the Treasury.

_• . u * j q r M f t £ & * w
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UNITED STATE$ OF AMERICA
1 -l/U PERCENT TREASURY CERTIFICATES OF INDEBTEDNESS OF SERIES F-1950

Due July 1, 1950

Dated and bearing interest from July 1, 19U9

TREASURY DEPARTMENT,
Office of the Secretary,
Washington, June 20, 19U9-

19U9
Department Circular No, 8U7
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, fr$n the people of
the United States, for certificates of indebtedness of the United States, desig­
nated 1 -l/U percent Treasury Certificates of Indebtedness of Series F-1950, in
exchange for Treasury Certificates of Indebtedness of Series F-19U9, maturing
July 1 , 19U9.
II.

DESCRIPTION OF CERTIFICATES

1 . The certificates will be dated July 1 , 19U9, and will bear interest from
that date At the Bate of 1 -l/U percent per annum, payable with the principal at
maturity on July 1 , 1950. 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 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, hr by ary local taxing
authority.
3* The certificates will be acceptable to secure deposits of public moneys.
■They will not be acceptable in payment of taxes.
Bearer certificates will be issued in denominations of $1 ,0 0 0 , $5 ,0 0 0 ,
The certificates will not be issued in regis­
tered form.
U.

$10,000, $100,000 and $1 ,0 0 0 ,0 0 0 ,

5. The certificates will be subject to the general regulations of the
Treasury Department, now or hereafter prescribed, governing United States
certificates.
III.

SUBSCRIPTION AND ALLOTMENT

1. Subscriptions will be received at the Federal Reserve Banks and Branches
and at the Treasury Department, Washington. Banking institutions generally may
submit subscriptions for account of customers, but only the Federal Reserve Banks
and the Treasury Department are authorized to act as official agencies.

•«V

: ->-

t w !r

.{ir v'oaÿ' antóunced the offerir-»
Certificati-^ vi
> ’*

-;. *.'Âï*t<vf-i''

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OŸU.

.

me
[day announced the offering, through
¡ent Treasury Certificates of Indebtedtge basis, par for par, to holders of
Series F-19U9, in the amount of
y 1, 19U9. Cash subscriptions will

OT,

<y*v>—

7 Îi

UM

e dated July 1 , 1 9 U 9 , and will bear
ine and one-quarter percent per annum,
In July 1 , 1 9 $ 0 . They will be issued

“ * “

a

•v

$1,000, $$,000, $10,000, $100,000

1

*

jublic Debt Act of 19U1, as amended,
ed shall not have any exemption, as
r laws amendatory or supplementary
taxability are set f orth in the

Subscriptions will be received at the Federal
and at the Treasury Department, Washington, and s h o u l d b e a c c o m p a n i e d b y ^
like face amount of the maturing certificates. Subject to the usual rese
tions, all subscriptions will be allotted in full.
The subscription books will close for the receipt of all subscriptions at
the close of business Thursday, June 23»
Subscriptions addressed to a Federal Reserve Bank or Branch or to the
Treasury Department, and placed in the mail before midnigh June
»
,- .
considered as having been entered before the close of the subscription books.
The text of the official circular follows?

I

RELEASE, MORNING NEWSPAPERS,
Monday, June 20, 19U9«______

0 LS

Secretary of the Treasury Snyder today announced the offering, through
the Federal Reserve Banks, of 1-l/U percent Treasury Certificates of
ness of Series F-19£0, open on an exchange basis, par for par, f o l d e r s oi
Treasury Certificates of Indebtedness of Series F-19U9, m the amount of
$£ ,7 8 2 ,8 9 0 ,0 0 0 , which will mature on July 1, 19U9- Cash subscriptions vail
not be received.
The certificates now offered will be dated July 1, 19U9, 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 July 1,
ftinn oort
in bearer form only, in denominations of $ 1 ,0 0 0 , $£,0 0 0 , $ 1 0 ,0 0 0 , $ 1 0 0 , 0 0 0
and $ 1 ,0 0 0 ,0 0 0 .
Pursuant to the provisions of the Public Debt Act of 19U1, as amended,
interest upon the certificates now offered shall not have any exemption, as
such, under the Internal Revenue Code, or laws amendatory or supplementary
thereto. The full provisions relating to taxability are set forth m the
official circular released today.
Subscriptions will be received at the Federal Reserve Banks and Branches,
and at the Treasury Department, Washington, and should be accompanied by a
like face amount of the maturing certificates. Subject to the usual reserva­
tions, all subscriptions will be allotted in full.
The subscription books will close for the receipt of all subscriptions at
the close of business Thursday, June 23.
Subscriptions addressed to a Federal Reserve Bank or Branch or t a the
Treasury Department, and placed in the mail before midnight June 23, will be
considered as having been entered before the close of the subscription books.
The text of the official circular follows:

TREASURY DEPARTMENT
Information Service

WASHINGTON, D .C .

RELEASE, MORNING NEWSPAPERS,
Monday, June 20, 19^9.
S-2030
Secretary of the Treasury Snyder today announced the offering, through
the Federal Reserve Banks, of I-I/I4 percent Treasury Certificates of Indebted­
ness of Series F-19£0, open on ah exchange basis, par for par, to holders of
Treasury Certificates of Indebtedness of Series F-19U9, in the amount ef
$£,762,890,000, which will mature on July 1, 1 9h9. Cash subscriptions vail
not be received.
$
The certificates now offered will be dated July 1, 19U9> 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 July 1, 1950. They will be issued
in bearer form only, in denominations of $ 1 ,0 0 0 , $£,0 0 0 , $ 1 0 ,0 0 0 , $ 1 0 0 , 0 0 0
and $ 1 ,0 0 0 ,0 0 0 .
Pursuant to the provisions of the Public Debt Act of 19l|l> as amended,
interest upon the certificates now offered shall not have any exemption, as
such, under the Internal Revenue Code, or laws amendatory or supplementary
thereto. The full provisions relating to taxability are set forth in the
official circular released today.
Subscriptions ?/ill be received at the Federal Reserve Banks and Branches,
and at the Treasury Department, Washington, and should be accompanied by a
like face amount of the maturing certificates. Subject to the usual reserva­
tions, all subscriptions will be allotted in full.
The subscription books will close for the receipt of all subscriptions at
the close of business Thursday, June 23.
Subscriptions addressed to a Federal Reserve Bank or Branch or to the
Treasury Department, and placed in the mail before midnight June 23, will be
considered as having been entered before the close of the subscription books.
The text of the official circular follows?

UNITED STATES OF AMÉRICA
1-l/U PERCENT TREASttó CERTIFICATES OF INDEBTEDNESS OF SERIES f-±9%0
Due July 1, 1950

Dated and bearing interest from July 1, 19U9

TREASURY DEPARTMENT,
Office of the Secretary,
Viashington, June 20 , 19U9.

19U9
Department Circular No. 8U7
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 1-l/U percent Treasury Certificates of Indebtedness of Series F-1950, in
exchange for Treasury Certificates of Indebtedness of Series F-19U9, maturing
July 1, 19U9.
II,

DESCRIPTION OF CERTIFICATES

1. The certificates will be dated July 1, 19U9, and will bear interest from
that date at the rate of 1-l/U percent per annum, payable with the principal at
maturity on July 1, 1950. 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 be exempt from
all taxation now or hereafter imposed on the principal or interest thereof by any
State, or any of the possessions of the United States, or by ary local taxing
authority.
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 will not be issued in regis­
tered form.
5. The certificates will be subject to the general regulations of the
Treasury Department, now or hereafter prescribed, governing United States
certificates.
III.

SUBSCRIPTION AND ALLOTMENT

1. Subscriptions will be received at the Federal Reserve Banks and Branches
and at the Treasury Department, Washington. Banking institutions generally may
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 certificates applied
for, and to close the books as to ary or all subscriptions at any time without
notice; and any action he may take in these respects shall be final. Subject tu
these reservations, all subscriptions will be allotted in full. Allotment notices
will be sent out promptly upon allotment.
IV.

PAYMENT

i. Payment at par for certificates allotted hereunder must be made on or
before July 1,
or on later allotment, and may be made only in Treasury Cer­
tificates of Indebtedness of Series F-19U9, maturing July 1, 19^9, which will be
accepted at par, and should accompany the subscription. The full year’s interest
on the certificates surrendered will be paid to the subscriber following accept­
ance of the certificates.
V.

GENERAL PROVISIONS

1. As fiscal agents of the United States, Federal Reserve Banks are author­
ized avnd requested to receive subscriptions, to make allotments on the basis and
up to the amounts indicated by the Secretary of the Treasury to the Federal Re­
serve Banks of the respective Districts, to issue allotment notices, to receive
payment for certificates allotted, to make delivery of certificates on full-paid
subscriptions allotted, and they may issue interim receipts pending delivery of
the definitive certificates.
2. The Secretary of the Treasury may at any time, or from time to time,
prescribe ’supplemental or amendatory rules and regulations governing the offering,
which will be communicated promptly to the Federal Reserve Banks.

JOHN W. SNYDER,
Secretary of the Treasury.

T

TREASURY DEPAR

WASHINGTON, D .C .

Information Service

IMMEDIATE RELEASE,
June 17* 19^9.

Friday,

S-2031

S e c r e t a r y S n y d e r t o d a y a n n o u n c e d the signing of
a n A g r e e m e n t s u p p l e m e n t i n g the U n i t e d S t a t e s - M e x i c a n
S t a b i l i z a t i o n A g r e e m e n t e n t e r e d into in May, 19^7.
This n e w A g r e e m e n t i n c r e a s e s to $25 m i l l i o n the b a l ­
ance a v a i l a b l e f r o m the U n i t e d S t a t e s S t a b i l i z a t i o n
F u n d for the p u r c h a s e of M e x i c a n p e sos to s t a bilize
the U n i t e d S t a t e s d o l l a r - M e x i c a n p e s o rate of exchange.
The A g r e e m e n t was signed f o l l o w i n g a c c e p t a n c e b y 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 of a n e w p a r value of 8.6 5
M e x i c a n p e sos p er dollar, a n d a f t e r several weeks, of
s t u d y of the M e x i c a n f i n a n c i a l s i t u a t i o n b y of f i c i a l s
of the U n i t e d S t a t e s T r e a s u r y D e p a r t m e n t , of the B a n k
of M e x i c o and of the M e x i c a n M i n i s t r y of F i n ance.
S e c r e t a r y S n y d e r n o t e d w i t h s a t i s f a c t i o n that the
M e x i c a n G o v e r n m e n t has i n d i c a t e d its d e t e r m i n a t i o n to
c o n tinue and i n t e n s i f y its efforts, in p u r s u a n c e of
sound fiscal an d f i n a n c i a l p o l i cies, to insure the
s t a b i l i t y of the e x c h a n g e rate.
S e c r e t a r y S n y d e r stated that a n y o p e r a t i o n s u n d e r
the A g r e e m e n t w i t h M e x i c o will be c l o s e l y c o o r d i n a t e d
w i t h the a c t i v i t i e s of the I n t e r n a t i o n a l M o n e t a r y F u n d
in o r d e r to c o n t r i b u t e to the e f f o r t s of the F u n d to
sta b i l i z e the e x c h a n g e rate str u c t u r e of its me m b e r s .

-oOo-

Vf

^ — **•

Û
^

J>

iJ

RELEASE MORNING NEWSPAPERS,
Tuesday« June 21. 1949.
The Secretary of the Treaeury announced last evening that the tenders for
$900,000,000, or thereabouts, of 91-day Treasury bills to be dated June 23 and
to mature September 22, 1949# which were offered on June 17, were opened at
the Federal Reserve Banks on June 20«
The details of this issue are as followss
Total applied for « #1,507,215,000
Total accepted
902,774,000

Average price

(includes #60,724,000 entered on a non­
competitive basis and accepted in full
at the average price shown below)
- 99.707 / Equivalent rate of discount approx. 1.153$ per &nn|

Range of accepted competitive bids:
High
Low

( 9

- 99.711 Equivalent rate of discount approx. 1.143$ per annua
• 99.706
•
*
«
«
«
1.163$ «
■

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

$
6,008,000
1,269,005,000
23,622,000
14,070,000
5,403,000
3,148,GuO
93,633,000
3,375,000
3,011,000
8,493,000
11,O i l , 000
65.636.CX»

$ 5,508,000
757,105,000
8,622,000
14,870,000
5,403,000
3,148,000
34,883,000
3,375,000
3,011,000
8,402,000
9,191,000
49,256,000

#1,507,215,000

#902,774,000

Total

TREASURY DEPARTMENT
Information Service

WASHINGTON, D .C .

REIEASE MORNING NEWSPAPERS,
Tuesday, June 21, 1949,

'

S-2032

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 June 23 and to mature September 22, 1949, which were
offered on June 17, were opened at the Federal Reserve Banks on
June 20.
The details of this issue are as follows:
Total applied for - $1,307,215,000
Total accepted
902,774,000 (includes $60,724,000 entered
on a non-competitive basis
and accepted in full at
the average price shown
below)

Average price

- 99*707/ Equivalent rate of discount approx.
1 .158 $ per annum

Range of accepted competitive bids:
High

- 99*711 Equivalent rate of discount approx.
1.14-3$.per annum
- 9 9 .7 0 6 Equivalent rate of discount approx.

how

1 .1 6 3 $

(9

per annum

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
Applied for
$

TOTAL

6 ,0 0 8 , 0 0 0
1 ,2 6 9 ,0 0 5 , 0 0 0
2 3 ,6 2 2 , 0 0 0
1 4 ,8 7 0 , 0 0 0

Total
Accepted

5,403,000
3,148,000
93,633,000
3*375,000
3 ,0 1 1 , 0 0 0
8 ,4 9 3 , 0 0 0
1 1 ,0 1 1 , 0 0 0
6 5 ,6 3 6 , 0 0 0

$ 5 ,5 0 8 , 0 0 0
757*105,000
8 ,6 2 2 , 0 0 0
14,870,000
5,403,000
3,148,000
34,883,000
3,375,000
3 ,0 1 1 , 0 0 0
8,402,000
9 ,1 9 1 * 0 0 0
49,256,000

$1,507,215,000

$902,774,000

0O0

The T r e a s u r e r Is required#^?TT-a w
$1 5 0 , 0 0 0

£>lv ® a b o n d of

f o r the f a i t h p a f p e r f o r m a n c e of the d u t i e s of the

o f f i c e a nd f o r £ & & f i d e l i t y of e m p l o y e e s of t h e O f f i c e of t h e
Treasure

_____ _

T\

atutory provisions dating from thg

earliest d a y s p r o h ± b i t _ £ h e TiM&a«tirer f r o m e n g a g i n g in t r ade
-sg-gCL.
or commerce,

from^p.wrrihg an y sea vesselrp-and^^

o r selling^Government
A l l G overnment

securities.

c h e c k s w i t h the e x c e p t i o n of those

a g a i n s t f o r e i g n a c c ounts a re d r a w n on the Treasurer.
The O f f i c e of t h e T r e a s u r e r of t he U n i t e d States
p r e p a r e s the D a i l y S t a t e m e n t o f the U n i t e d S t ates Treasury,
w h i c h r e c a p i t u l a t e s G o v e r n m e n t finance,

and i s s u e s m o n t h l y

s t a t e m e n t s of the P u b l i c D ebt a n d of C u r r e n c y O u t s t a n d i n g .
The s i g n a t u r e of the T r e a s u r e r a p p e a r s w i t h that of
S e c r e t a r y o f the T r e a s u r y on p a p e r currency.
of c u r r e n c y b e a r i n g Mrs.
from

Clark's

the

The first p r i n t i n g s

s i g n a t u r e w i l l come

the p r e s s e s of the B u r e a u o f E n graijng a n d P r i n t i n g w i t h i n

the next

f e w days, b u t this n e w c u r r e n c y w i l l not e n t e r g e n e r a l

circulation until present

stocks of p a p e r m o n e y have b e e n used.

-3 -

Mrs. Clark’g career 3ias included successes in the
mercantile business, in banking, in farm management and
on the stage. Her business Interests have centered in her
home town of Richland, Kansas, where she was born /j.n 1900.J
She is a graduate of the College of the Sisters of Bethany,
T0 peka, Kansas, and of Washburn College. She was a student
for two years at Sargent’s Dramatic School, Carnegie Hall,
New York.
The Office of the Treasurer of the United States, which
Mrs. Clark heads, is

essentially a banking facility

for the Government. It has an average of 1600 employees,
all stationed in Washington.
Responsibilities of the Treasurer include the receipt
of all public moneys; the custody, issue and redemption
of United States currency and coin; the payment of (k>vemment
checks; the custody of securities deposited in the Treasury
as collateral or for safe keeping; and the payment of
principal and interest on the public debt*

-2-

Mrs.

C ^ ark replied:

MI a m v e r y h a p p y that
important

a w o m a n h as b e e n c h o s e n for an

Government o f f i c e n e v e r b e f o r e h e l d b y a woman*

I greatly appreciate
me p e r s o n a l l y .
significant

the h o n o r P r e s i d e n t

T r u m a n h a s done

But m y a p p o i n t m e n t as T r e a s u r e r is m o r e

as a m i l e s t o n e

in t he a d v a n c e m e n t of w o m e n

g e n e r a l l y in N a t i o n a l affairs.

I h o p e v e r y s i n c e r e l y that

it w i l l e n c o u r a g e w o m e n e v e r y w h e r e to b e c o m e

still m o r e

I n t e r e s t e d a n d still m o r e a c t i v e in p u b l i c life."
Mrs.

C l a r k succeeds the l a t e W i l l i a m A. Julian,

d i e d in an a u t o m o b i l e
a n n o u n c e d Mrs.

accident M a y

29• P r e s i d e n t T r u m a n

Clark's n o m i n a t i o n J u n e 6, a n d she was

c o n f i r m e d b y the Senate J u n e 9»

who

Regular Information Service heading

PRESS SERVICE
No. s-2033

RELEASE 11 A*M*, E.D.T.
Tuesday, June 21, 19^9

Mrs. Georgia Neese Clark of Richland, Kansas, today
became the first woman to hold the office of Treasurer of the
United States. She was sworn in at the Treasury in the presence
of a group of personal friends, Treasury officials and
members of the Treasury staff. The oath was administered by
James H. Hard, Treasury Personnel Director.
«You are the 29th American to become Treasurer of the
United States, and the first woman among the 29>M Secretary
Snyder told Mrs. Clark as he congratulated her. «You-ittieSr*»
'Othei*
new Tre&«fefc^#s*iVour appointment is no experiment, for
women

have fully

proved their competence to serve in the

highest public administrative positions.

Your accession

to the office of Treasurer is a tribute to you personally, ‘
to all American women, and w r y m a 1 1'
i umw BtfflTW1
1

TREASURY DEPARTMENT
Information Service
RELEASE 11 A,M., E,D,T.
Tuesday a June 21, 1949

WASHINGTON,

S~2033

Mrs« Georgia Neese Clark of Richland, Kansas* today became the first
woman to hold the office of Treasurer of the United States, She was sworn
in at the Treasury in the presence of a group of personal friends,
Treasury officials and members of the Treasury staff. The oath was
administered by James H, Hard, Treasury .Personnel Director,
nYou are the 29th person to become Treasurer of the United States,
and the first Woman among the 29,w Secretary Snyder told Mrs, Clark as he
congratulated her, "Your appointment is no experiment, for women have
fully proven their competence to serve in the highest public administrative
positions! Your accession to the office of Treasurer is a tribute to you
personally, and, through you, to all American women,”
Mrs* Clark replied:
"I am very happy that a woman has been chosen for an important Govern­
ment office that has never before been held by a woman, I greatly appreciate
the honor President Truman has done me personally. My appointment as
Treasurer, however, is more significant as a milestone in the advancement of
women generally in National affairs, I hope very sincerely that it will
encourage women everywhere to become still more interested, and more active,
in public life,”
Mrs# Clark succeeds the late William A, Julian, who died in an automo­
bile accident May 29* President Truman announced Mrs, Clark*s nomination
June 6, and she was confirmed by the Senate June 9,
Mrs, Clark*s career has included successes in the mercantile business,
in banking, in farm management and on the stage. Her business interests
have centered in her home town of Richland, Kansas, where she was born. She
is a graduate of the College of the Sisters of Bethany, Topeka, Kansas, and
of Washburn College* She was a student for two years at Sargent’s Dramatic
School, Carnegie Hall, New York,
The Office of the Treasurer of the United States, which Mrs, Clark heads
is essentially a banking facility for the Government, It' has an average of
1600 employees, all stationed in Washington,
Responsibilities of the Treasurer include the receipt o f all public
moneys; the custody, issue and redemption of United States currency and coin;
the payment of Government checks; the custody of securities deposited in the
Treasury as collateral or for safe keeping; and the payment of principal and
interest on the public debt.

All Government checks with the exception of those against foreign
accounts are drawn on the Treasurer#
The Office of the Treasurer of the United States prepares the Daily
Statement of the United States Treasury, which recapitulates Government
finance, and issues monthly statements of the Public Debt and of
Currency Outstanding#
The signature of the Treasurer appears with that of the Secretary
of the Treasury on paper currency# The first printings of currency
bearing Mrs# Clark’s signature will come from the presses of the Bureau
of Engraving and Printing within the next few days, but this new currency
will not enter general circulation until present stocks of paper money
have been used#

GEORGE A NEESE CLARK

Mrs© Georgia Neese Clark was b o m in Richland, Kansas, on
January 27, 1900o She graduated from the College of Sisters of Bethany
Topeka, Kansas, in 1917, and received an A© Bo degree from Washburn
College in 19210
Following study at Sargent’s Dramatic School, Carnegie Hall, New
York, in 1921-22, Mrs0 Clark devoted nine years to the theatre0
In 1931, Mrs© Clark was employed in the Kansas Legislature and in
July, 1934-, became a teller in the Richland (Kansas) State'Bank© A
year later she ?iras elevated to assistant cashier of the bank, and was
e3e cted to its presidency in 193S0
In 1936, Mrs-o Clark became Democratic National Committeewoman for
Kansas© She was elected vice-president of the Democratic Midwest
Conference (thirteen states) in 1947o
Since 1940, Mrs0 Clark has owned and managed a general store and
grain elevator in Richland, and has actively managed her seven farms
in that locality© She also manages thirteen farms for her mother,
Mrs© Albert Neese of Topeka©
Mrs© Clark served
County, Kansas, during
Monmouth Township, and
Mrs0 Clark is a member

as volunteer Savings Bond chairman for Shawnee
the war0 She is a director of the 4-H Club of
is treasurer of the tovvnship’s P&rm Bureau©
of the Upsilon Chapter, Alpha Phi Sorority0

President Tinman nominated Mrs0 Clark for Treasurer of the United
States on June 6, 1949 o She m s confirmed unanimously by the Senate
on June 9, and took the oath of office on June 21, 1949o

Page 2
.1

State

Amount

SoH

Percent of
Quota
Achieved
June ¡ I l I9ii9

Tennessee

60.6*

Texas

75.5

Utah
Vemont
Virginia
%shington
% et Virginia
Wisconsin
ISycoring
m m * U.S.

68.?
56.5

66,1*

65.Q
76*2

67.0
102.1

176k,32k

73.3*

ippPO-’RTUTTITF D P I Y F

OF ~ i ™ F

Percent of
Quota
Achieved
June XI« 19ii9

Amount

State
Alabama
A riz o n a

Arkansas
No.kCalifornia
So. California
Colorado
Connecticut

Delaware
Diet, of Col.
Florida
Georgia
Idaho
I llin o is

Indiana
Iosa
Kansas

Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
Neir Hampshire
New Jersey
New Mexico
New York
North Carolina
North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island
So. Carolina
So. Dakota

Sold

6,053,
3*161*
k$902

20,635
28,527

7*23?
?*??7
8 ,6 6 2
8 ,m

7,731
1,903
72,31a
20,035

26,953
Hi,108

8,685
6,972
2,983
8,911
20,986
36,562
18,913
l*,o55
25,202
5,073
16,533
711*
1,319
26,201
1,878
89,550
8,373
5,371*
1*7,183
9,715
6,357
62,367
3,531
It,107
9,556

1 1 , 191+9

n

66.8*
81>,6
72.3
67*3
67*7
77*8
66.3
78.7
72*2
71.0
67.5
70.5

80.1*

71.0
90.5
7l*.9
6l*.7

68.1»

76.5
70.2
66.5
75.1*
72.7
59.8
78.1
93.8
90.2

62.1

57.6
71.0
75.1
70.1
69.8

72.5
75.3
67.7
61*.9
75.5
67.9
70.7
97.0

jfyt—

// \s *

**■ - -

~-~1

s ' -

< ¡* 1

The Treasury Department announced today that
as of June 17,

WS&

sales of Series E Savings Bonds

in the Opportunity Bond Drive had reached the total
of $862,217,000.

This total is 83$ of the Driven St***? ¿r

quota of
i*n- S

mi

$1,040,000,000

^ QCi F

TlPe Secretary

Snyder

expressed his gratification with the progress of the
i-O

drive, which kss=sa±A^=ac8B6 going well in all States.
K

Attached is the latest sales report, by States,
as of June 11, 1949.
Final
will iflQt be available

b

results of the drive
/\

July 17^
r

/

IMMEDIATE RELEASE
Wednesday, June 22, 1949

S-

v ^

n

(j

The treasury Department announced today that as
of June 17, sales of Series E Savings Bonds in the
Opportunity Bond Drive had reached the total of
$862,217,000.

This total is 83^ of the Drived

Series E Bond quota of $1,040,000,000.
Secretary Snyder expressed his gratification with
the progress of the drive, which is going well in all
States•
Final results of the drive will be available about
July 17.
Attached is the latest sales report, by States, as
of June 11, 1949.

TREASURY DEPARTMENT
Information Service

WASHINGTON, D .C .

IMMEDIATE RELEASE
W e d n e s d a y 3 June 2 2 , 1949.

S - 2034

The T r e a s u r y D e p a r t m e n t a n n o u n c e d t o d a y that
as of June 1 7 , sales of Seri e s E Sa v i n g s B o n d s in
t h e A 2 ?p o r t u n i t y B o n d B r i v e h a d r e a c h e d the total
of $ 8 6 2 , 2 1 7 , 0 0 0 .
Thi s t o tal is 8 3 $ of the Drive'
Seri e s E B o n d q u o t a of $ 1 , 0 4 0 , 0 0 0 , 0 0 0 . '
S e c r e t a r y S n y d e r e x p r e s s e d hi s g r a t i f i c a t i o n
w i t h the p r o g r e s s of the drive, w h i c h is g o i n g
w e l l in all S t a t e s .
b
s
P i n a l r e s ults
a b out J u l y 1 7 .

of the d r i v e w i l l be a v a i l a b l e

A t t a c h e d is the late s t sales r e p o r t
States, as of June 11, 1 9 4 9 .

by

SALES OF SERIES E SAVINGS BONDS IN
OPPORTUNITY DRIVE AS OF JUNE 11* 1949

Amount
Sold

State
Alabama
Arizona
Arkansas
N o . California
S o . California
Colorado
Connecticut
Delaware
District of Columbia
Florida
Georgia
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
New Hampshire
New Jersey
New Mexico
New York
North Carolina
North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island
So. Carolina
S o . Dakota

$

6,053,000
3,164,000
4,902,000
2 0 ,6 3 5 , 0 0 0
28,527,000
7,239,000
9 ,7 9 7 , 0 0 0
1 ,7 1 6 , 0 0 0
8 ,6 5 2 , 0 0 0
8 ,6 5 2 , 0 0 0
7,731,000
1,903,000
72,341,000
20,035,000
28,953,000
14,418,000
8 ,6 8 5 , 0 0 0
6 ,9 7 2 , 0 0 0
2 ,9 8 3 , 0 0 0
8 ,9 1 1 , 0 0 0
2 0 ,0 8 6 , 0 0 0
3 6 ,5 6 2 , 0 0 0
1 8 ,9 1 3 , 0 0 0
4,055,000
2 5 ,2 0 2 , 0 0 0
5 ,0 7 3 , 0 0 0
1 6 ,5 3 3 , 0 0 0
714,000
1 ,3 1 9 , 0 0 0
2 6 ,2 0 1 , 0 0 0
1 ,8 7 8 , 0 0 0
8 9 ,5 5 0 , 0 0 0
8 ,3 7 3 , 0 0 0
5 ,3 7 4 , 0 0 0
4 7 ,1 8 3 , 0 0 0
9 ,7 1 5 , 0 0 0
6 ,3 5 7 , 0 0 0
6 2 ,3 6 7 , 0 0 0
3 ,5 3 1 , 0 0 0
4,417,000
9 ,5 5 6 , 0 0 0

Perceftt of
Quota
Achieved
June 11, 1949
66 .8$

84.6
72.3
67.3
67.7
77.8
66.3
78.7
72 .2
71.0

67.5
70.5
80.4
71.0

90.5
74.9
64.7
68.4
76.5
70.2

66.5
75.4
72.7
59.8
78.1

93.8
90.2

62 .1
57.6

71.0
75.1
70.1
69.8

72.5
75.3
67.7
64.9
75.5
67.9
70.7
97.0

2

Amount
Sold

State
Tennessee
Texas
Utah
Vermont
Virginia
Washington
West Virginia
Wisconsin
Wyoming

$

TOTAL U.S.

$ 764,324,000

6 ,7 8 9 , 0 0 0

27.880.000

Percent of
Quota
Achieved
June 11. 1949

6 0 .6$

2.404.000

938,000

1 0 .6 85.000
11 182,000
8 .158.000
18,218,000

,

1.940.000

oOo

65.0

7 6 .a
6 7 .0
1 0 2 .1

73.3$

9 - 0 3

s '

IMMEDIATE RELEASE,
Wednesday, June 22, 19l;9

The Bureau of Customs announced today that the Canadian quota
of 79i>,000 bushels of wheat prescribed in the Presidents Proclamation
of May 28, l?Ul, as modified, was approximately 96 percent filled
for the quota year ending May 28, 19^0, by entries for consumption
authorized as of 2:00 p.m. E.S.T. on June 22, 19U9-

TREASURY DEPARTMENT
Information Service

Wa s h i n g t o n , d . c .

IMMEDIATE RELEASE,
Wednesday, June 22, iq4Q.

S-2035

The Bureau of Customs announced today
that the Canadian quota of 7 9 5 , 0 0 0 bushels
of wheat prescribed in the President’s
Proclamation of May 28, 1941, as modified,
was approximately 96 percent filled for
the quota year ending May 28, 1 9 5 0 , by
entries for consumption authorized as of
2:00 p.m. E.S.T. on June 22, 1949.

0O0

- 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.

Under Sections i|2

and 117 (a) (1) of the Internal Revenue Code* as amended by Section Ilf? of the
Revenue Act of 1 9 h 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 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

-

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 olds.
Those submitting tenders will be advised of the acceptance or rejection tnereof.
The Secretary of the Treasury expressly reserves the right to accept or re ject
any or all tenders, in whole or in part, and his:action in any such respect shall
be final.

Subject to these reservations, non-competitive tenders for $200,000 or

less without stated.price from any one bidder will be accepted in full at the
average price (in three decimals) of accepted competitive bids.

Settlement for

accepted tenders in accordance with the bids must be made or completed at the
Federal Reserve Bank on

June 30* 19U9
------- jgj
■

>

cash or other immediately avail-

able funds or in a like face amount of Treasury bills maturing
Cash and exchange tenders will receive equal treatment.

June 3 0 » ^ 9h9--- •

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 Sta^e, or any of
the possessions of the United States, or by any local taxing authority.

For

xfcSSK&x
i m S t S f DEPARTMENT
^ Waohing'
toii.
FOR RELEASE, MORNING NEWSPAPERS*
Friday, June 2k, 19k9«_____ _

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

m

in exchange for Treasury bills maturing

June— y30.
19k9
, 1° t>e issued on
- y f y * rr<r.. ...................
w
a discount basis under competitive and non-competitive bidding as hereinafter
provided.
will mature
interest.

The bills of this series will be dated
September 29, 19k9

June 30. 19ii9

, and

, when the face amount will be payable without

They will be issued in bearer form only, and in denominations of

$1,000, $5,000, $10,000, $100,000, $ 500 ,000, and $1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the
Daylight Saving
closing hour, two o ’clock p.m., Eastern/gfcxxkxxd time, Monday, June 27, 19k9
Tenders will not be received at the Treasury Department, Washington.

Each

tender must be for an even multiple of $1,000, and in the case of competitive
tenders the price offered must be expressed on the basis of“ 100, with not more
than three decimals, e. g., 99.925*

Fractions may not be used.

It is urged

that tenders be made on the printed forms and forwarded in the special envelopes
which will be supplied by Federal Reserve Banks or Branches on application
therefor.
Tenders will be received without deposit from incorporated banks and trust
companies and from responsible and recognized dealers in investment securities.
Tenders from others must be accompanied by payment of 2 percent of the face

TREASURY DEPARTMENT
Information Service

RELEASE, MORNING NEWSPAPERS,
Friday, June 24, 1949.

WASHINGTON,

S-2036

The Secretary of the Treasury, by this public notice,
invites tenders for $9 0 0 ,0 0 0 ,0 0 0 , o r .thereabouts, of 9 1 -day
Treasury bills, for cash and in exchange for Treasury bills
maturing June 30, 1949* to be issued on a discount basis under
competitive.and non-competitive bidding as-hereinafter provided.
The.bills of this series- will be dated June 30, 1 9 4 9 , and will
mature September 2 9 , 1 9 4 9 , 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 ,0 0 0 , 0 0 0 (maturity value;.
Tenders will be received at Federal Reserve Banks and
Branches up to the closing hour, two o'clock p-.m., Eastern
Daylight Saving time, Monday, June 2 7 , 1949. Tenders will not
be received at the Treasury Department, Washington. Each tender
must be for an even multiple of $ 1 ,0 0 0 , and in the case of
competitive tenders the price offered must be expressed on the
basis of 1 0 0 , with not more than three decimals, e. g., 9 9 .9 2 5 .
Fractions may not be used.' It is urged that tenders be made
on the printed forms and forwarded in the special envelopes
which will be supplied by Federal Reserve Banks or Branches on
application therefor.
Tenders will be received without deposit from incorporated
banks and trust companies and from responsible and recognized
dealers in investment securities. 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

2
his action in any such respect shall he final. Subject to
these reservations, non-competitive tenders for $200,000 or
less without stated price from any one bidder will be accepted
in full at the average price (in three decimals) of accepted
competitive bids. Settlement for accepted tenders in accordance
with the bids must be made or completed at:the Federal Reserve
Bank on June 30* 1949, in cash or other immediately available
funds or in a like face amount of Treasury bills maturing
June 30, 1949. 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) (l) of the Internal Revenue
Code, as amended by Section 115 of the Revenue Act of 1941, the
amount .of discount at which bills issued hereunder are sold
shall not be considered to accrue until such bills shall be
sold, redeemed or otherwise disposed of, and such bills are
excluded from consideration as capital assets. Accordingly,
the owner of Treasury bills (other than life insurance companies)
issued hereunder need include in his income tax return only the
difference between the price paid for such bills, whether on
original issue or on subsequent purchase, and the amount
actually received either upon sale or redemption at maturity
during the taxable year -for which the return is made, as:
ordinary gain or loss.
Treasury Department Circular No. 4l8, 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.

0 O0

WK ll'

:

27 op j o p tun it ies. it is essential that we
maintain our confidence in the future.
I

•

a“'
-.■

fife must not hesitate or falter.

We

;;.|v:

|

must not be afraid of change or of
facing up to new problems.

Many of

disguise.

They are but stepping-stones

to greater national achievement.

I

■ ■ ■

lems are opportunity in

we are not losing the genius and the
faith which created a mighty industrial
society and gave us our present high
standard of living.

Surely, we will

continue to demand that advances in
knowledge and skills be harnessed to
meet our wants and increase our
well-being.

Nothing can retard us

except lack of confidence and a
slackening of our traditional spirit
of progress.
To benefit by our tremendous

j

science and industry uni ted to combine
suc ri a wealtn of new discoveries and

new processes at our doors.

s

I believe that if we grasp our
opportunit ies with vigor and
enthusiasm, we can continue to move
forward to new heights of achievement
in the years ahead.

There is no

reason wny we should not.

America

certainly is not losing the vision
and the déterminâtion that built this
nation to its greatness.

Certa inly

24
When we Ig o k at the present
economic picture in perspective.

the opportuni ties already at h a n c U « ^ \
incIud ing the current readjustment s^
^ b e g in to take on their true
proportions.
resources,

j$e have vastly greater

immensely advanced technics

knowledge, a rapidly increasing
population, and compelling incentives
to further progress far beyond the
conception of a generation or two ago.
Surely, never before in our history hav

they were in 1959.

Corporations» too,

are currently in an exceptionally
favorable financial position with
working capital at a near-record level
billion
This Nation was built on confidence
.

m

the future.

/
Our progress, fronf the

days of Plymouth and Jamestown, has
stemmed from our ability to make use of
.\■
■
our great resources to better the
lot of the individual citizens of this
country.

earning money at the rate of nearly
214 billion dollars a year.

f

This is

close to the all-time peak rate of last ,nj
December.

In addition,

individuals

have near-record holdings of liquid
savings in the form of checking accounts
savings accounts, Government securities,!
ano currency.

These assets total

I

200 billion dollars and are a reservoir I
of purchasing power which has been
accumulated in recent years.

These

savings are 3-1/2 times as large as

|3V

I

ingenuity and skills and raw materials

a

with diligent energy to prolong our
peacetime prosperity.
It may appear to you that l have
overlooked one essential

^

in describing

the possibiIi ties of new products in
this country -- namely, tne purchasing
power necessary to buy these many
■

new products.

Far from forgetting it,

however, I want to emphasize that
the purchasing power available today

J

is at near record levels.
People in this country are now

ri

C \j

-

or the Synthet

the Plastics

but neither of these terms adequately

l i vi ng
t

m e s the times in which

8ssia
\e

mi

*

caI I it the Atomic

but, broad as is the s

term,

»

of this

it does not embrace all the

marvelous new things in store for
In times of challenge the people
■trasìi'.*:

of this country have a

shown

themselves capable of bold,

imaginative

actions
H

m3 PC

io not be living up to

the tradition ana character of our free
enterprise system if we did not use our

- IS industrial plant is the most modern
and best equipped in the world.

It is

at the height of its efficiency, ready
to make full use of the wealth of new
materials and new methods which wartime
discoveries and developments have made
avaiIabIe to us.
In past decades we had the
Steamboat era, the Railroad era, and
the Automobile era, but the era
opening before us defies such pat
cI ass if icat ion.

Ve might call

it

saies organ izations are beginning to
insist on new and up-to-date products.
Bus iness
aware of

fact that.

some t i

sellers' markets would become buyers'
markets.

In ant ici

of

5

return

of competition, American business
invested the tremendous sum of
75 billion do 11ars in

construet ion

and new equi

s tnca

, the vast American

17
sei ling

our entry into the

as fast as they could be turned out.

1t

appeared to be good business, under
sucn circumstances.
risk of offer

t c

f

new products.

Cofiipetitive selling methods, which have
always been the mark of our
enterprise system, were largely
abandoned.
, our distributing
organ izat ions realize that they must
out and sell.

More i

»
tP
w <'

16
# '

All of these facts point 1

a

strong demand for the basic essentials
of living, which will contribute
to active business In the near future.
Of course, for business to make
the most of its opportunItIes, business
will have to get out and sell.

And

that change in business psychology Is
fortunately already taking place.
Until recently, there has been
little need for salesmanship.

Products,

substantially unchanged since before

-

15

-

shifts in the population as between
different areas of the country.

Our

newly expanded communities need new
schools, hospitals, roads, shopping
centers, and municipal service plants.
More than that, many existing
facilities -- largely neglected during
the war ~~ have yet to be repaired,
modernized, or replaced.
And, finally, our entire
population has come to demand a
continually improving standard of
Iiv ing.

14
we try to get a perspective on the
present situation -- that we have
IT million more people toaay in the
United States than we had before the
war.

This is an increase as great

as if six cities the size of New York,
Cni cago, P h i IaoeI phi a, Detroit,
Los Angeles, and Cleveland -- our six
largest in Í940 -- had been added to
the population in the short space of
ten years.
Moreover, there have been vast

- 13 said before, that the bankers of the
country will marshal their available
credit resources in such a way as to
proyiae sound support for the economy.
There have been difficult
problems of readjustment

likewise in

otrier areas of the economy -- in'
industry,

in farming,

Government.

in labor, and in

These, too, have been
*

met with the vigor and determinati on
characteristic of this Nation.
It is important to realize -- when

written during this period of adjustment
to peacetime conditions.
As to the future,

it is up

members of the banking fraternity
to demonstrate that
to retain their

fully intend
b

in

financing the needs of private
enterprise by meeting their obligations
w itn courage and déterminât ion.

While

in many ways the exerting of effective
banking influence in the present period
is difficult,

I am confident, as 1

sm I

to private business went up 18 billion
dollars.

Bankers were in a position

to meet these demands successfully,
a l s o . '

There were changes in reserve
recuirements.

When they were increased

last fall, you were able to take that
situation in your striae; when reserve
requirements were reduced this spring,
you adjusted yourselves again.
In general,

I believe that bankers

deserve much credit for the sound recorp ja

to
demonstrated your capacity to meet
changing circumstances.

There was.

first, the Government security pay-off
program, when bank holdings of this
one type of earning asset declined
20 billion dollars in the short period
of a year and a half.

Bankers were

well prepared to meet this situation,
because they had plenty of short-term
securities on hand.
There was the period of rapid
postwar loan expansion, when bank loans

unwarranted fears on the other.
In your own field of commercial
banking, caution and good judgment
prevented the over-extens ion of
inflationary credit.

And, you have

been active in other than cred it areas
dur ing the postwar years.

Your

investment advice has been sound.

You

have kept your own security portfolios

volume increased
Qn many occasions, you have

-

8

-

opportunities which lie before us today
are equally great.

!!
Today, as

previously, the American banker is
called upon to carry out his tradi ti onalj,
role of helping to translate these
opportun Ities into reality and of
meeting the new demands that wiI I
grow out of the adjusted situation in
the business ana financial world.
Decisions will have to be based on an
informed judgment as to sound business
icies and a course
hopes on the one hand

T
have been vast changes in the economic
life of this country.

We have seen

in that interval the development of
our great airplane, automotive, and
electrical

industries, and we are now

witnessing the beginnings of an
atomic energy program which may bring
further revo lutionary changes in the
industrial

life of the country.

However, great as the
developments in the past fifty years
have been, I believe that the

mm

mm

going on this year, we must remember,
represent a desirable shift to more
normal competitive conditions.

America

has grown and prospered in an
environment of competitive business
enterprise.

Competitive products and

i

competitive pricing have, throughout
I

our history, been the mainsprings of
economic life in this country.
: In the ha If century since you
I

Colorado bankers first got together
to talk over your problems, there

- 5 caused long faces among harbingers of
woe.

The fact that business is

continuing to operate at near-record
levels, after more than three years of
unprecedented output, has not been
suff icientIy emphasized.
In a period such as the present,
it is of the utmost importance not to
allow current readjustments in business
activity to blind us to the great
opportunities wnich are developing
for our future.

The readjustments

4
economic position.

Gloomy

economic forecasts were made at
the very time we were achieving
the greatest heights of prosperity
\
that we have ever known. We became
so accustomed to making new
business recoras, month after month
following the war, that our ceasing
to establish further new highs in I143

3
measure ail phases of economic
adjustments and readjustments.
There are, unfortunateIy, some
persons who do not understand our
over-ail capacity and economic
resources.

There are also people who

do not see beyond temporary obstacles
which arise from time to time and
cannot therefore envision the main
current of our national progress.
Fears have been voiced each year
since the end of the war about our

2

opportunities that distinguish this
£'

great country.

Your effective help

is needed in the interesting days
which lie ahead.
i have been attentive to the
note of confidence in the economic and
financial picture which has emanated
from the various bankers* conferences
this year.

I have found these reports

particularly impressive since you
bankers are generally the first of the
business community to detect and

Banking plays an influential
part in helping shape the general
financial and economic viewpoint.
Because of your role in business,

commerce, agriculture and inoustry,
you bankers are in a strategic
position to render a most desirable
service to the public as well as to
yourselves.

Bankers with confidence

in the future of this Nation have
made a vital contribution to the
development of the resources and

Æ à
^6
¿ai.y*>*. j

¿O

^ i r / j|
' •**■...

'~ -»____ _—

/ jsC é f# «

.Q f^ fy .

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A

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J t i, s \

& + **L -

I1

i S ■';■■
•

■•<■■'. y

■■ ■ ^ ,, • c

• ¡•' -

\

iflS

^ 1

1

:

<
■
—
6
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3
------------------ ------------------------------------- ----------------------------------------

______________

_

TREASURY DEPARTMENT
Washington
The following address by Secretary Snyder before the
Annual Convention of the Colorado Bankers* Association
at the Hotel Colorado, denwood Springs, Colorado, is
scheduled for delivery at 3800 P*M*. M*S*T*. Efriday.
June 24« 19¿9. and is for release at that time«

THE BANKER*S RESPONSIBILITY IN OUR ECONOMY

Banking plays an influential part in helping shape the general finan­
cial and economic viewpoint. Because of your role in business, commerce,
agriculture and industry, you bankers are in a strategic position to
render a most desirable service to the public as well as to yourselves*
Bankers with confidence in the future of this Nation have made a vital
contribution to the development of the resources and opportunities that
distinguish this great country* Your effective help is needed in the
interesting days which lie ahead.
I have been attentive to the note of confidence in the economic and
financial picture which has emanated from the various bankers * conferences
this year* I have found these reports particularly impressive since you
bankers are generally the first of the business community to detect and
measure all phases of economic adjustments and readjustments.
There are, unfortunately, some persons who do not understand our
over-all capacity and economic resources* There are also people who do
not see beyond temporary obstacles which arise from time to time and can­
not therefore envision the main current of our national progress*
Fears have been voiced each year since the end of the war about our
economic position* Gloomy economic forecasts were made at the very time
we were achieving the greatest heights of prosperity that we have ever
known* We became so accustomed to making new business records, month after
month following the war, that our ceasing to establish further new highs
in 194-9 caused long faces among harbingers of woe* The fact that business
is continuing to operate at near—record levels, after more than three years
of unprecedented output, has not been sufficiently emphasized.
In a period such as the present, it is of the utmost importance not
to allow current readjustments in business activity to blind us to the
great opportunities which are developing for our future* The readjust­
ments going on this year, we must remember, represent a desirable shift to
more normal competitive conditions. America has grown and prospered in
an environment of competitive business enterprise* Competitive products
and competitive pricing have, throughout our history, been the mainsprings
of economic life in this country.
In the half century since you Colorado bankers first got together to
talk over your problems, there have been vast changes in the economic life

S-2037

- 2 ~

of this country. We have seen in that interval the development of our
great airplane, automotive, and electrical industries, and we are now
witnessing the beginnings of an atomic energy program which may bring
further revolutionary changes in the industrial life of the country#
However, great as the developments in the past fifty years have been,
I believe that the opportunities which lie before us today are equally
great# Today, as previously, the American banker is called upon to carry
out his traditional role of helping to translate these opportunities into
reality and of meeting the new demands that will grow out of the adjusted
situation in the business and financial world# Decisions will have to be
based on an informed judgment as to sound business policies and a course
steered between exaggerated hopes on the one hand and unwarranted fears
on the other#
In your own field of commercial banking, caution and good judgment
prevented the over-extension of inflationary credit# And, you have been
active in other than credit areas during the postwar years. Your invest­
ment advice has been sound# You have kept your own security portfolios
in good order as your postwar loan volume increased.
On many occasions, you have demonstrated your capacity to meet changing
circumstances* There was, first, the Government security pay-off program,
when bank holdings of this one type of earning asset declined 20 billion
dollars in the short period of a year and a half# Bankers were well pre­
pared to meet this situation, because they had plenty of short-term
securities on hand*
There was the period of rapid postwar loan expansion, when bank loans
to private business went up 18 billion dollars. Bankers were in a position
to meet these demands successfully, also#
There were changes in reserve requirements# When they were increased
last fall, you were able to take that situation in your stride; when
reserve requirements were reduced this spring, you adjusted yourselves
again#
In general, I believe that bankers deserve much credit for the sound
record written during this period of adjustment to peacetime conditions#
As to the future, it is up to the members of the banking fraternity to
demonstrate that they fully intend to retain their leadership in financing
the needs of1 private enterprise by meeting their obligations with courage
and determination* Tfllhile in many ways the exerting of effective banking
influence in the present period is difficult, I am confident, as I said
before, that the bankers of the country will marshal their available credit
resources in such a way as to provide sound support for the economy.
There have been difficult problems of readjustment likewise in other
areas of the economy — in industry, in farming, in labor, and in Government#
These, too, have been met with the vigor and determination characteristic
of this Nation#

It is important to realize — -when we try to get a perspective on the
present situation — that we have 17 million more people today in the
United States than we had before the war* This is an increase as great
as if six cities the size of New York, Chicago, Philadelphia, Detroit,
Los Angeles, and Cleveland — our six largest in 1940 — had been added to
the population in the short space of ten years*
Moreover, there have been vast shifts in the population as between
different areas of the country* Our newly expanded communities need new
schools, hospitals, roads, shopping centers, and municipal service plants*
More than that, many existing facilities — largely neglected during the
war — have yet to be repaired, modernized, or replaced.
And, finally, our entire population has come to demand a continually
improving standard of living*
All of these facts point to a strong demand for the basic essentials
of living, which will contribute to active business in the near future*

Of course, for business to make the most of its opportunities, business
will have to get out and sell* And that change in business psychology is
fortunately already taking place*
Until recently, there has been little need for salesmanship* Products,
substantially unchanged since before our entry into the war, were selling
as fast as they could be turned out. It appeared to be good business, under
such circumstances, not to take the risk of offering new products*
Competitive selling methods, which have always been the mark of our free
enterprise system, were largely abandoned*
,.
•
Now, our distributing and selling organizations realize that they must
get out and sell* More important, sales organizations are beginning to
insist on new and up-to-date products*
Business management has been well aware of the fact that, at some
time, sellers* markets would become bvyers* markets* In anticipation of the
return of competition, American business has invested the tremendous sum
of 75 billion dollars in new construction and new equipment during the years
since the war ended*
As a result, the vast American industrial plant is the most modern
and best equipped in the world* It is at the height of its efficiency,
ready to make full use of the wealth of new materials and new methods
which wartime discoveries and developments have made available to us*
In past decades we had the Steamboat era, the Railroad era, and the
Automobile era, but the era opening before us defies such pat classification
We might call it the Plastics Age or the Synthetics Age, but neither of
these terms adequately defines the times in which we are living*

We might call it the Atomic Age, but, broad as is the scope of this
term, it does not embrace all the marvelous new things in store for us*
In times of challenge the people of this country have always shown
themselves capable of bold, imaginative actions. We would not be living
up to the tradition and character of our free enterprise system if we did
not use our ingenuity and skills and raw materials with diligent energy to
prolong our peacetime prosperity.
It may appear to you that I have overlooked one essential in describing
the possibilities of new products in this country — namely, the purchasing
power necessary to buy these many new products. Far from forgetting it,
however, I want to emphasize that the purchasing power available today is
at near record levels.
People in this country are now earning money at the rate of nearly
214 billion dollars a year. This is close to the all-time peak rate of^
last December. In addition, individuals have near-record holdings of liquid
savings in the form of checking accounts, savings accounts, Government
securities, and currency. These assets total 200 billxon dollars and are a
reservoir of purchasing power which has been accumulated in recent years.
These savings are 3-1/2 times as large as they were in 1939* Corporations,
too, are currently in an exceptionally favorable financial position with
working capital at a near-record level of 65 billion dollars.
This Nation was built on confidence in the future. Our progress, from
the days of Plymouth and Jamestown, has stemmed from our ability to make
use of our great resources to better the lot of the individual citizens of
this country.
When we look at the present economic picture in perspective, including
full consideration of the current readjustments, the opportunities already
at hand begin to take on their true proportions. We have vastly greater
resources, immensely advanced technical knowledge, a rapidly increasing
population, and compelling incentives to further progress far beyond the
conception of a generation or two.ago. Surely, never before in our history
have science and industry united to combine such a wealth of new discoveries
and new processes at our doors.
I
we can
ahead.
losing
ness.

believe that if we grasp our opportunities with vigor and enthusiasm,
continue to move forward to new heights of achievement in the years
There is no reason why we should not. America certainly is not
the vision and the determination that built this nation to its great­
Certainly we are not losing the genius and the faith which created

5

a mighty industrial society and gave us our present high standard of
living# Surely, we will continue to demand that advances in knowledge
and skills be harnessed to meet our wants and increase our well-being#
Nothing can retard us except lack of confidence and a slackening of our
traditional spirit of progress#
To benefit by our tremendous opportunities, it is essential that we
maintain our confidence in the future# We must not hesitate or falter#
We must not be afraid of change or of facing up to new problems# Many of
these problems are opportunity in disguise# They are but stepping-stones
to greater national achievements#

— 0 O0 —

f)

/

RELEASE, MCRNING HE^PÁPSSS,
Tuegday, Juna 28. 1949*

«TJi© Secretary of th6 Trsasury announoed last evening tbat thfi ttudíw tOT

$900,000,000,. or thereabouts, of 91-day Treasury bilis to ba datad Juna 30 and to matura
September 29, 1949, which «ere of farad on Juna 24, «are opaaad at tha Federal Rasarra
Banks on Juna 27«
The detalla of thla iaaua ara aa follows:
Total appllad for - $1,538,241,000
Total accaptad
900,960,000

Ara raga prioa

(inaladas $51,239,000 enterad oa a noneorapetitlve b&sis and aeoaptad in full
at tha araraga prioa shown balo«)
- 99*707/ Equivalent rata of discount approx. 1.158% par aanum

Ranga of aooaptad ooiapatit ive bids:
Hiflv,
Low

. 99.711 Equivalant rata of discount approx. 1.143% par anaura
- 99.707
«
•
"
B
"
1-159% «
(75 paroant of tha aaount bid for at tha low prioa waa aooaptad)

Federal Reserva
Distriot

Total
Applied for

Total
Aooaptad

Boston
New York
Philadelphla
Cleveland
Riehmond
Atlanta
Chicago
St. Louis
Mlnnaapolla
Sansas City
Dallas
San Francisco

$

16,043,000
1,202,908,000
22,665,000
36,732,000
4,642,000
3,672,000
144,327,000
9,874,000
2,867,000
12,964,000
3,845,000
77,697,000

| 14,279,000
646,808,000
15,122,000
35,102,000
4,192,000
3,422,000
88,330,000
9,399,000
2,642,000
12,339,000
3,596,000
65.735,000

$1,538,241,000

$900,960,000

TOTAL

RELEASE, m o r n i n g n e w s p a p e r s ,
Tuesday, June 28, 1949*____

S-2038

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 June 30 and to mature September 29, 19^9 , which were
offered on June 24, were opened at the Federal Reserve Banks on
June 27.
The details of this issue are as follows:
Total applied for - $1,538,241,000
Total accepted
900,960,000 (includes $51,239,000
entered on a non­
competitive basis and
accepted in full at the
average price shown below)
Average price
- 99*707/ Equivalent rate of discount approx.
1 .158 $ per annum
Range of accepted competitive bids:
High

- 99.711 Equivalent rate
1.143$
- 9 9 . 7 0 7 Equivalent rate
1 .159 $

Low
(75

of discount approx,
per annum
of discount approx.
per annum

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

i6,o4 8 , o o o

4,642,000
3 ,6 7 2 , 0 0 0
1 4 4 ,3 2 7 , 0 0 0
9 ,8 7 4 , 0 0 0
2 ,8 6 7 , 0 0 0
1 2 ,9 6 4 , 0 0 0
3,845,000
77,697,000

$ 14,273,000
646,808,000
1 5 ,1 2 2 , 0 0 0
3 5 ,1 0 2 , 0 0 0
4 ,1 9 2 , 0 0 0
3,422,000
8 8 ,3 3 0 , 0 0 0
9,399,000
2,642,000
12,339,000
3 ,5 9 6 , 0 0 0
6 5 ,7 3 5 , 0 0 0

$1,538,241,000

$9 0 0 ,9 6 0 , 0 0 0

1 ,2 0 2 ,9 0 8 , 0 0 0
2 2 ,6 6 5 , 0 0 0
3 6 ,7 3 2 , 0 0 0

TOTAL

Total
Accepted

0 O0

“he Secret Service learned that

automobiles were

rented In each city by the counterfeiters, who did most of
the passing of the counterfeits at

theater« and lee oreaa

parlorsi About 15 notes are known to hare been passed In washiigton.
Good descriptions of

those passing the notes were.

obtained by the Secret Service in Richmond and Baltimore*
fhS claiming up of the ring oame swiftly when the tour
ended at Washington.
the descriptions,

Confidential information, coupled with

enabled the Secret Servlet

to

round up

all of. the suspeete In a 24-hour period starting at 2 A.M.
Sunday*
Five agents wsre assigned to the Inveatlgatlon,
lnoludlng Russell Daniel, supervising agent of the Washington
dlstrlot, who was In charge of the group;
¿jgmr

Secretary
ommended the five agents for

their qiick and effective wnrtfMs

in apprehending the^ringj

1

mm% & * * * * * * > the agents had had to work around the clock* without relief*

Secret Service agents arrested Creighton at Is 30 A,M,
today when he drove his ear tip to
address«

the Delafleld Place

Then the agents vent Inside the Delafleld Place

building and arrested Kldwellf

whom they had kept under

surveillance for several hour««
Creighton had shout f5O#0OO worth of the counterfeit
$20 .notes hidden in his ear* where the agents quickly found
them*

Kldwell had another

$50*000 worth In his room*

Bebar, a printer* allegedly

made

the wu l tUith plates

used In manufacturing the notes«
Hr« and K?s« Hughes

allegedly had the entire $100*000

worth of counterfeits Inthelr custody for a tine«
Manufacture of the notes apparently was completed In
early April«. The
then started# It
The tour
then M

air tour of the country

to.pass the notee

m e only »eagerly successful«

took the counterfeiters first

to St* Louis*

In turn to Kansas City* Cbaha, Memphis, Pallas*

fort Worth* Atlanta, Richmond, Baltimore, and hadk to
Washington«

Reports of the passing of a comparatively few

notes In each of these places were resolved«

jj^

f /& A**++**y

S ' > 03f

/A cjC

«

United State« Beemet Service agents

today arrested

four men and a woman for manufacturing approximately #100,000
#.

•

worth of counterfeit #20 Federal Reserve note« at a plant In
downtown Washington# All of the note« except $2000 worth were
seised#
J
Members of the alleged counterfeiting ring were said by
the Secret Service to hare just completed a swing around the
country by airplane

to pass the note«* Report« of the passing

of approximately #2,000 worth

have been received# The first

note was passed April 3# in St# louts.
Those arrested were*
Eugene Hammond Creighton, 25, 1315 Delafield Place,
H*W*

Walter Wilbur Kldwell, 3°# seme address*
William F* Hughes, 2S, and hie wife Josephine
Hughes, 25, apartment 207, ¿000 l?th St* ffW*
Arthur M. Bebar, 35 , 1013

17 th St# H#E#

All were charged with manufacturing and passing
counterfeit currency*
Creighton and Kldwell admitted manufacturing

the

counterfeits* They said the work was done in
suite No* 3 $
on

at

IS07 H St* N*W*

They leased the suite

March 30 # and had Inserted in the lease a clause permitting

them to "operate a duplicating machine*"

TREASURY DEPARTMENT
Information Service
natEniATE

WASHINGTON. D .C .

rexease,

Monday. June 27. 194-9.

„

S-20Ì9

Secretary of the Treasury Snyder today made the following announcement:
United States Secret Service agents today arrested four men
and a woman for manufacturing approximately $100,000 worthy of counter­
feit $20 Federal Reserve notes at a plant in downtown Washington.
All of the notes except $2,000 worth were seized.
Members of the alleged counterfeiting ring were said by the
Secret Service to have just completed a swing around the country^
by airplane to pass the notes, Reports of the passing of approxi­
mately $2,000 worth have been received. The first note was passed
April 28 in St -, Iouis. .
Those arrested weres
Eugene Hammond Creighton, 25, 1315 Delafield Place, Northwest.
Walter Wilbur Kidwell, 30, same address,
William F. Hughes, 28, and his wife Josephine Hughes, 25,
apartment 207, 6000 13th Street, Northwest.
Arthur M, Bebar, 35, 1013 17th Street, Northeast*
All were charged with manufacturing and passing counterfeit
currency,
Creighton and Kidwell admitted manufacturing the counterfeits.
They said the work was done in suite No, 3 at 1807 H Street, North­
west, They leased the suite on March 30, and had inserted in the
lease a clause permitting them to '‘operate a duplicating machine."
Secret Service agents arrested Creighton at 1:30 A. M. today
when he drove his car up to the Delafield Place address. Then the
agents went inside the Delafield Place building and arrested Kidwelly
whom they had kept under surveillance for several hours.
Creighton had about $50,000 worth of the counterfeit $20 notes
hidden in his car, where the agents quickly found them. Kidwell
had another $5 0 , 0 0 0 worth in his room,
Bebar a printer, allegedly made the multilith plates used in
manufacturing the notes,

-

.2 ~

Mr, and Mrs, Hughes allegedly had the entire $100,000 worth of
counterfeits in their custody for a time.
Manufacture of the notes apparently was completed in early
April. The air tour of the country to pass the notes then started.
It. was only meagerly successful.
The tour took the counterfeiters first to St, Louis, then in
turn to Kansas City, Omaha, Memphis, Dallas, Fort Forth, Atlanta,
Richmond, Baltimore, and back to Washington, Reports of the passing
of a comparatively few notes in each of these places were received.
The Secret Service learned that automobiles were rented in
each city by the counterfeiters, who did most of the passing of
the counterfeits at theaters and ice cream parlors. About 15 notes
are known to have been passed in Washington.
Good descriptions of those passing the notes were obtained by
the Secret Service in Richmond and Baltimore, The cleaning up of
the ring came swiftly when the tour ended at Washington. .'Confidential
information, coupled with the descriptions, enabled the Secret Service
to round up all of the suspects in a 2 4 -hour period starting at
2 A. M, Sunday,
Five agents were assigned to the investigation, including
Russell Daniel, supervising agent of the Washington district, who
was in charge of the group.
Secretary Snyder commended the five agents for their quick
and effective work in apprehending the members of the ring, noting
that the agents had had to work around the clock, without relief.

o 0 o -

- 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.

Under Sections 1+2

and 117 (a) (1) of the Internal Revenue Code* as amended by Section Hi? of the
Revenue Act of 191+1* the amount of discount at which bills issued hereunder are
sold shall not be considered to accrue until such bills shall be sold* redeemed or
otherwise disposed of* and such bills are excluded from consideration as capital
assets.

Accordingly* the owner of Treasury bills (other than life insurance

companies) issued hereunder need include in his income tax return only the
difference between the price paid for such bills* vdiether on original issue or
on subsequent purchase* and the amount actually received either upon sale or
redemption at maturity during the taxable year for which the return is made* as
ordinary gain or loss.
Treasury Department Circular No. 1+18* as amended, and this notice* prescribe
the terms of the Treasury bills and govern the conditions of their issue.
of the circular may be obtained from any Federal Reserve Bank or Branch.

Copies

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 m i l be made b y
the Secretary of the Treasury of the amount and price range of accepted bids.
Those submitting tenders m i l 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 fulls 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

July 7, 19U9

Federal Reserve Bank on
—

, 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.

July 7> 19ii9

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
*
RELEASE, MORNING NEWSPAPERS*
Tuesday, June 28, 1914-9.______
55

The Secretary of the Treasury7-, by this public notice, invites tenders for
$ 900.000*000

i 0T thereabouts,

of

91
-day Treasury bills, for cash and
w
in exchange for Treasury bills maturing July 7.^1^k9______ , 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 6, 19U9

July 7 ,^19k9______ , 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 Branche.s up to the
Daylight Saving
closing hour, two o*clock p.m., Eastern/gtamtasd time, Friday, July 1, 19h9
Tenders will not be received at the Treasury Department, Washington.

Each

tender must be for an even multiple of $1,000, and in the case of competitive
tenders the price offered must be expressed on the basis of 100, with not more
than three decimals, e, g., 99.925.

Fractions may not be used.

It is urged

that tenders be made on the printed forms and forwarded in the special envelopes
which will be supplied by Federal Reserve Banks or Branches on application
therefor.
Tenders will be received without deposit from incorporated banks and trust
companies and from responsible and recognized dealers in investment securities.
Tenders from others must be accompanied by payment of 2 percent of the face

TREASURY DEPARTMENT
Information Service

RELEASE, MORNING NEWSPAPERS,
Tuesday, June 28, 194,9,_____m

WASHINGTON. D .C

S-2040

The Secretary of the Treasury, by this public notice, invites
tenders for $900,000,QQO, or thereabouts, of 91-day Treasury bills
for cash and in exchange for Treasury bills maturing July 7, 1949 *
to be issued on a discount basis under competitive and non­
competitive bidding as hereinafter provided. The bills of this
series will be date,d July 7 , 1 9 4 9 , and will mature October 6 , 1940
when the -face amount will be payable without interest. They will '
be issued In bearer form only, and in denominations of $ 1 ,0 0 0 ,
$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, Friday, July 1, 1 9 4 9 . 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*9^5* Fractions may not be
used. It is urged that tenders he made on the printed forms and
iorwarded 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 thé 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
H I be advised of the acceptance or rejection thereof
The
Secretary of the Treasury expressly reserves the right'to accent
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 $2 0 0 , 0 0 0 or less without stated price

2
from any one bidder will be accepted in full at the average price
(in three decimals) of accepted competitive bids. Settlement for
accepted tenders in accordance with the bids must be made or
completed at the Federal Reserve Bank on July 7 , 1 9 4 9 , in cash
or other immediately available funds or in a like face amount of
Treasury bills maturing July 7 , 1 9 4 9 ... Gash and exchange tenders
will receive equal treatment. Cash adjustments will be made for
differences -between the par value of maturing bills accepted in
exchange and the issue price of the new bills.
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 pr
supplementary thereto. The bills shall be subject to estate,
inheritance, gift or other excise .taxes, whether Federal or State,
but shall be exempt from all taxation now or hereafter imposed on
the principal or interest thereof by any State, or any of the
possessions of the United States, or by any local taxing authority.
For purposes of taxation the amount of discount at which Treasury
bills are originally sold by the United States shall be considered
to be interest. Under Sections 42 and 117 (a) (l) of the
Internal Revenue Code, as amended by Section 115 of the Revenue
Act of 1941, the amount of discount at which bills issued here­
under are sold shall not be considered to accrue until such bills
shall be sold, redeemed or otherwise disposed of, and such bills
are excluded from consideration as capital assets. Accordin giy,'
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, w h e t h e r on
original issue or on subsequent purchase, and the amount actually
received either upon sale or redemption at maturity d u r i n g the
taxable year for which the return is made, as ordinary gain or
loss .
Treasury Department Circular No. 4l8, 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.
0O0

^

HORDIATE RELEASE,
WedntBcUy, Jo n g 2 ÿ , l ÿ t t ÿ

/

_

¿2.0

4

The Secretary of the Treasury today announced the subscription and
allotment figures with respect to the current offering of l-l/l* percent
Treasury Certificates of Indebtedness of Series F-1950, to be dated
July 1, 19l*9#
Subscriptions and allotments were divided among the several Federal
Reserve Districts and the Treasury as follows t
Federal Reserve
District

Total Subscriptions
Received and Allotted

I

Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St* Louis
Minneapolis
Kansas City
Dallas
San Francisco
Treasury

01*632*000

3,801,156,000
105.130.000
11*6,338,000
55,851,000
101,31*2,000
1*92,737,000
ill*,
102,71*1,000
150.583.000
91*,009*000
237,571*,000

il*l*,

TOTAL

ooo

» 5,599,1*1*6,000

(

TREASURY DEPARTMENT
Information Service

WASHINGTON. D .C

IMMEDIATE RELEASE,
Wednesday, June 29, 1949.

S-2041

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 F-1950, to be dated July 1,
1949.

Subscriptions and allotments were divided among
the several Federal Reserve Districts and the Treasury
as follows:
Federal Reserve
District

Total Subscriptions
Received and Allotted

Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis,
Minneapolis
Kansas City
Dallas
San Francisco
Treasury

$

8 2 ,6 3 2 , 0 0 0

3,881,156,000
1 0 5 .1 3 0 .0 0 0
146.338.000
55 -,8 5 1 ,0 0 0
1 0 1 .3 4 2 .0 0 0
4 9 2 .7 3 7 .0 0 0
144.114.000
102.741.000
150.583.000
94,009,000
237.574.000
5,239.000

TOTAL

0O0

$5,599,446,000

Secretary Snyder today announced the appoint­
ment of Prank Dow as Commissioner of Customs.
Mr. Dow, a career employee, has served as Acting
Commissioner since May 1, 1947.
A native of Sangerville, Maine, Mr. Dow
entered the Customs Service in 1910, and for
three years was assigned to the San Juan,
Puerto Rico, office of the Bureau.

Prom 1913

to 1920 he was Customs appraising officer in
Philadelphia, later serving in the Customs
Information Exchange at the Port of New York.
In 1923 he was transferred to the Customs Bureau
in Washington.
Mr. Dow was appointed Assistant Commissioner
of Customs in 1927, remaining in that capacity
until he was named Acting Commissioner.

TREASURY DEPARTMENT
Information Service

WASHINGTON, D .C .

IMMEDIATE RELEASE
Wednesday, June 29* 1949

S-2042

Secretary Snyder today announced the appointment of
Frank Dow as Commissioner of Customs«

Mr« Dow, a career

employee, has served as Acting Commissioner since May 1, 1947*
A native of Sangerville, Maine, Mr* Dow entered the Customs
Service in 1910, and for three years was assigned to the San Juan,
Puerto Rico, office of the Bureau#

From 1913 to 1920 he was

Customs appraising officer in Philadelphia, later serving in the
Customs Information Exchange at the Port of New York#

In 1923

he was transferred to the Customs Bureau in Vifashington#
Mr# Dow was appointed Assistant Commissioner of Customs in
1927, remaining in that capacity until he was named Acting
Commissioner#

0 O0

0

RELEASE, MORBINO NEWSPAPERS,
Saturday, July 2, 1949«

d
j

Tha secretary of the Treasury announced last evening that the tenders for
#900,000,000, or thereabouts, of 91-day Treasury hills to he dated July 7 and to mature
October 6, 1949, which were offered on June 28, were opened at the Federal Reserve Banks
on July 1,
The details of this issue are as follows:
Total applied for - #1,696,622,000
Total accepted
900,537,000 (includes #56,520,000 entered on a non­
competitive basis and accepted in full
at the average price shown below)
Average price
- 99.734/ Equivalent rate of discount approx. 1.058$ per annum
Range of accepted competitive bids:
Hi«k
Low

- 99.740 Equivalent rate of diseount approx. 1.029$ per annum
- 99.732
*
«
lt060$ "

(78 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

#

U , 214,000
1,354,209,000
29,679,000
28,140,000
2,820,000
7,683,000
147,536,000
22,893,000
4,530,000
20,862,000
13,807,000
53,249,000

# 5,614,000
747,670,000
13,679,000
12,700,000
1,820,000
2,363,000
49,712,000
10,165,000
3,280,000
5,462,000
4,257,000
43,795.000

#1,696,622,000

#900,537,000

TOTAL

RELEASE, MORNING NEWSPAPERS,
Saturday, July 2, 1949.

S-2043

The Secretary of the Treasury announced last evening that the
tenders for $900,000,000, or thereabouts, of 9 1 -clay Treasury bills
to be dated July 7 and to mature October 6 , 1 9 ^9 , which were
offered on June 28, were opened at the Federal Reserve Banks on
July 1.
The details of this issue are as follows:
Total applied for - $1,696,622,000
Total accepted
900,537,000 (includes $56,520,000
entered on a non­
competitive basis and
accepted in full at the
average price shown below)

Average price

- 99*73*1/ Equivalent rate of discount approx.
1 .052 $ per annum

Range of accepted competitive bids:
High

- 9 9 , 7 4 0 Equivalent rate
1 .029 $
- 99*732 Equivalent rate
1 .060 $

kow
(78

of discount approx.
per annum
of discount approx.
per annum

percent of the amount bid for at the low price was accepted)

Federal Reserve
District

Total
Applied for

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

$

11,214,000
1,334,209,000
29.679.000
28.140.000
2 ,8 20,000
7.683.000
1 ^ 7 ,5 3 6 , 0 0 0
22.893.000
4.530.000
2 0 862.000
1 3 ,8 0 7 , 0 0 0
53,249.000

.

TOTAL

$1,6 9 6 ,622,000
0 O0

Total
Accepted
$

5,614,000
747,670,000
13.679.000
12 .700.000
1 ,820,000
2 ,383,000
49.712.000
1 0 .1 6 5 . 0 0 0
3,280,000
5,462,000
*1,2 5 7 , 0 0 0
**3,795,000

$900,537,000

12
of our economic might.

-

We must guard them for our own sake, and for the

sake of the free peoples of the world who look to us for leadership#

I

said at the beginning of this talk that any golden anniversary was

a noteworthy occasion*

Anniversaries, and especially those from which we

may look down long vistas of years, are vantage points for the correction

1
of our perspectives, and for checking our courses*

To those who may be inclined to skepticism about America*s future,

I suggest examining ths social and economic facts of today carefully,

then taking a look back along the course of American history in the half

century since the International Circulation Manager s’Association came into

being.

We started that half century with far less premise than we have

today*

And we came a long way in those fifty years*

No one can be sure of the shape of things to ccme.

But all the known

indicators point to opportunities for further economic progress and continued

prosperity beyond anything we have experienced in the past*

In my mind, we

need only to apply ourselves to the development of these opportunities with

determination, with a measure of regard for the general welfare, and —

of all —

with confidence#

most

Il
- f -

by atomic energy*

The fields of electronics* of light metals* of plastics and other

synthetic materials, of home equipment —

these and many others are

certain sources of future great industrial and commercial activity, and

so of great opportunity for private enterprise*

American business is far more of a «going concern« than it ever

■was in earlier peacetime periods*

For business has invested $75 billion

in new construction and new equipment since the war ended*

Still further

capital expenditures on a large scale are planned for this year and next*

These expenditures are investments in the future of this country.

They

represent the determination of business to put into use the new materials

and new processes which we have developed*

The products of that

nation will be powerful stimulants to our trade of the future*

It should not be forgotten that the financial soundness of the

United States Government is well established*

This is a fact of supreme

tofciteBBBaBU
importance* not only to us but to the^worîd*

We must* of course* guard

that financial soundness well* -just as we must guard all other sources

-/O Many of you have charge of circulations "which reach the rich farming

areas of the country*

You do not need to be told that agriculture enjoys

exceptional financial health*

belong to farmers*

Of the liquid assets I mentioned, $20 billion

And payments on the farm mortgage debt have brought it

down to $5 billion*

Population growth is still another basic source of economic strength*

We have 17 million more people in America now than we had before the war*

The entire population demands a continually improving living standard —

more comforts, more advantages, more possessions, more services*

These are some of the foundation stones of our economic power*

Let’s

look briefly at what might be t e m e d the superstructure*

We have at our command a dazzling array of new materials, new techniques,

new manufacturing processes.

Our rubber and chemical industries, to cite

two examples, hold great possibilities for the development of new products

and new markets*

Such things as new medicines and new insecticides will

sell far into the millions of dollars.

And not even our greatest

scientists are willing to prophesy the transformations which may be wrought

This cash position, and the fact that the people are continuing

to earn money at the rate of nearly $214 billion a year, spell immense

buying power.

If the public is not rushing to the stores for goods

these days as it did soon after the war, the primary reason is not

lack of money to spend.

It appears, rather, that the public is more

bent on getting its money1s worth than was the case when shortages were

the rule.

Our financial institutions and our speculative markets are

in unusually sound condition.

We have not repeated, after World War II,

the speculative excesses that followed World War I.

Merchants,

furthermore, have been cautious about their inventories, with the

result that we have had little if any of the distress liquidation of

other years.

Through the voluntary action of the banking business as

well as through Government action, the credit situation has been kept

sound

- 1 -

such a question to you or to your newspaper boys*

It is a fair one, and

I want to give you my answer*

In my judgment, the promise is one of an era of expanding economic

opportunity greater than this country ever has known*

As of today, our economy gives every indication of underlying

strength.

There has been no undermining of that strength as we have re­

adjusted our business structure to normal peacetime markets.

Some few

critics have mistaken readjustment for something basically destructive.

I

believe they now are realizing their error.

It requires but little "digging" to disclose some of the major

elements of our underlying economic strength.

cash position of the people of Anerica.

estimated at more than $200 billion —

One of them is the strong

Individuals hold liquid assets

and I might note that in the mid-

nineteen thirties, the entire national income was only a fourth of that.

The $200 billion does not include such important items of asset strength as

insurance, equities in unincorporated businesses, and securities other than

those of the Federal Government*

roads lead to opportunity, the Savings Bonds road is one of the

straightest and most plainly marked.

also.

That same road leads to security,

It is an excellent road to travel.

In a little less than two years, the first Series E bonds will

begin to mature.

Each holder will get four dollars forTXSBB^cthree

dollars originally invested.

That will dramatize pleasingly for a great

many people the fact that participation in the Savings Bonds Program is

a profitable venture.

Some of the payments will be spent for things

long-desired; some will be reinvested; some will go into business

enterprises.

Whatever the disposition of the payments by any given bond holder,

we shall see the Savings Bonds Program in full action, providing communities

in every State with a constant flow of capital accumulated through the

thrift of each community*s people.

Those who have been wise enough to do

the accumulating will also be wise enough, I am sure, to dispose to good

advantage of the proceeds.

What sort of promise does the future hold for investors, whether

of money or energy or both?

Some Savings Bonds prospects may have put

-

6

-

I -would like to review the progress of the Savings Bonds Program

for you briefly*

That Program has been described as one of this

country’s great success stories*

I think the facts fully warrant the

description*

The first Savings Bonds, as you know, were called Baby Bonds*

We began selling them March 1, 1935, and in six years we sold $4 billion

worth of them.

Then in 1941, with the war clouds gathering, the new

issues of Series E, F and G Bonds went on sale*

Of those, the holdings by individuals —

individuals, mind you,

not including corporations or financial institutions —

#50 billion*

now approach

The holdings are increasing, because for many months sales

regularly have exceeded redemptions.

The total of Savings Bonds out­

standing is billions more than at the end of the war*

Many industries

and commercial firms have reinstated the Payroll Savings Plan.

A great

many banks operate the Bond-a-Month Plan.

It is obtious that Americans realize fully what we have been

saying in connection with the Opportunity Drive —

that while many

boys serving one of the section* s leading newspapers were saving more than

15 percent of their incomes for bonds«

Such figures show plainly that the participation of circulation

departments and their personnel in the Savings Bonds Program is providing

excellent training for the young Americans who will be taking over the affairs

of this country in a few more years«

- 4 -

and th© men who direct 'them, have made a "telling contribution to this vital

Treasury activity —

Government.

a contribution which well merits the appreciation of your

I bring you that appreciation today from Secretary Snyder and

all the rest of us at the Treasury, and ask that you pass on a generous share

to the boys who are under your direction.

^ think it interesting to note that the energetic work of your boys

during the successive bond drives had a double significance,

nyhile helping

instill among their customers a greater realization of the importance of

systematic thrift, the boys have themselves acquired, if they did not have it

already, the commendable habit of laying aside a part of today*s earnings so

that they may be able better to take advantage of tomorrow*s opportunities.

The Treasury*s Savings Bonds Division reports that newspaper boys in

many localities save just as scrupulously for the purchase of bonds as they do

for the purchase of bicycles and fishing tackle and all the other things dear

to th© heart of a young man.

A survey of 50,000 newspaper boys in one of the

far-western states revealed that a full ten percent of the total earnings of

the group went into savings stamps and bonds.

In a mid-western state, the 3,000

9

!

that they have given us such splendid aid in the United States Savings Bonds

Program.

You did valiant Savings Bonds service in -wartime, and you have

shouldered responsibility in the Savings Bonds Opportunity Drive, now drawing

to a close, with the same fine willingness and spirit*

Under your guidance, news paperboys have been

visiting more than

13,000,000 American homes to deliver Opportunity Drive sales messages*
« << <*

That is

outstanding

When representatives of the International Circulation Managers*

Association, meeting in Washington last February* pledged the support of this

organization to the Opportunity Drive, millions of Americans did not know that

Savings Bonds were still being sold, or why they were still being sold*

This

lack of understanding was a major problem for the Treasury*s small Savings

Bonds Division and for the volunteer Savings Bonds organizations in each State*

Newspaperjooys have helped manfully to solve that problem, by deliver in

Opportunity Drive thrift messages along with their papers*

of their work are amply reflected in our sales charts*

The good results

Again the newspaper boys

-

2

-

and all the other advantages ■which you have helped provide —

these have built

more American character, and helped pave the way for more successes in later

life, than the ablest statistician ever could compute.

As for the circulation manager himself, the International Circulation

Managers' Association's fifty years have seen him elevated from a status of

comparative unimportance —

if not outright obscurity —

paper's highest councils of management and direction.

to the daily news­

Meantime the association

has given unremitting support to high business standards and to ethical practices.

In this respect it has won a name for itself very high on the list of the

Nation's professional organizations.

I suppose that the daily newspaper will always be best known for its

editorial department, since that department has its own sounding board.

But certainly the importance of the circulation department has gained in

recognition, and, thanks in large part to the International Circulation

Managers' Association's work, is not far behind in prestige.

To us of the United States Treasury, circulation departments and their

complements of newspaper boys are of very special importance, for the reason

Addres
b x l6

- L I I O u i X l u U JL w A l

w J.* w V*.— —

- —

_

. W

^

Hotel Sheraton, Chicago, Illinois
Thursday, June 30, 1949, 1;Ô0 P. M»
r

Association#

This gathering culminates a half century of extraordinarily effective service

by the

Association to the profession which it represents, to the publishing

business, and to the millions of readers of American newspapers.

you most heartily on that record of accomplishment;

I congratulate

I wish you still greater

success for your work in your second half century of cooperative endeavor#

In a larger sense, the association has performed a service of incalculable

value to the whole of American life —

for newspaper circulation managers in

general have introduced countless young Americans into business, and the

International Circulatior^ Managers* Association has seen to it that they began

their business careers under the most auspicious and promising circumstances#

Your association has worked for the welfare of newspaper boys just as

diligently and earnestly as it has worked for the welfare of circulation managers«

The recreational and educational programs which you have encouraged —

the

”little merchant” plans, the athletic clubs, the bands, the college scholarships

TR!
Infoi
mm

S-20UM-

Fricj

at expendi1,000,000

turi
duri

The Secretary pointed out that this deficit was a reversal of the
trend of the two previous fiscal years when there were budget surpluses
of $7 5 ^,0 0 0 , 0 0 0 in 1 9 ^ 7 , and $8 ,1+1 9 ,0 0 0 , 0 0 0 in 19*+g.
Budget Receipts and Expenditures
The following table shows a summary of budget

results for the

fiscal year I9 U9 with a comparison for I9 US (in millions):

Fiscal
Year I9 U9
let receipts
Expenditures
Surplus (+) or
Deficit (-) ......

$ 38, 2^6
b/UQ,057
-1,811

Fiscal
Year 19^+S

$ 1+2,211
c/33 . 7 9 1
+&,^19

compared
with 19^8

- $ 3 * 9^5
+6 ,2 6 6
-1 0 , 2 3 1

let budget receipts (after deducting employment taxes appropriated
to the Federal Old-Age and Survivors' Insurance Trust Fund and refunds
of taxes) amounted to $3 8 ,2 ^ 6 ,0 0 0 ,0 0 0 , a reduction of $3 ,9 6 5 .0 0 0 , 0 0 0
a/
b/
c/

This deficit takes into account expenditures of $3*000,000,000 which
were charged against the Foreign Economic Cooperation T rus t Fund,
Includes Foreign Economic Cooperation Trust Fund expenditures of
$3 ,0 0 0 ,0 0 0 ,0 0 0 .
Excludes transfer to Foreign Economic Cooperation Trust Fund of
$3 ,0 0 0 ,0 0 0 ,0 0 0 .

Note:

All figures are rounded; therefore, details may not add to totals.

iENT

TREASURY DEPA

WASHINGTON, D .C .

Information Service
IMMEDIATE EELEASE
Friday, July 1» 3-9^9

S-20HH*

Secretary of the Treasury John ¥. Snyder announced today that expendi­
tures of the United States Government exceeded receipts by $1,811,000,000
during the fiscal year ended June 3°>

£/

The Secretary pointed out that this deficit was a reversal of the
trend of the two previous fiscal years when there were budget surpluses
of $7 5 ^,0 0 0 , 0 0 0 in 1 9 ^ 7 * and $8 ,^1 9 ,0 0 0 , 0 0 0 in 1 9 H8 .
Budget Receipts and Expenditures
The following table shows a summary of budget

results for the

fiscal year 1 9 U9 with a comparison for I9 H8 (in millions):

Year 1 9 H5

Fiscal
Year I9 H8

Het receipts ..*..
Expenditures ....*

$38,2h6
W ho , 0 5 7

c/3 3 , 7 9 1

Surplus (+) or
Deficit (-) •*

-1,811

^Hl9

$H2,211

Change, 19^9
compared
with I9 H8

-$3*965
+6 ,2 6 6
-10,231

ITet budget receipts (after deducting employment taxes appropriated
to the Federal Old-Age and Survivors’ Insurance Trust Fund and refunds
of taxes) amounted to $3 8 ,2 ^ 6 ,0 0 0 ,0 0 0 , a reduction of $3 ,9 6 5 ,0 0 0 , 0 0 0
i7
b/
■’
c/

This deficit takes into account expenditures of $3,000,000,000 which
were charged against the Foreign Economic Cooperation Trust Fund,
Includes Foreign Economic Cooperation Trust Fund expenditures of
$3 ,0 0 0 ,0 0 0 ,0 0 0 .
Excludes transfer to Foreign Economic Cooperation Trust Fund of
$3 ,0 0 0 ,0 0 0 ,0 0 0 .

llote:

All figures are rounded; therefore, details may not add to totals.

*• £ f

compared with the previous fiscal year.

This reduction is accounted for

mainly by decreases in withheld taxes of $1»595*000,000, in proceeds
from sales of surplus property of $1,3*40,000,000, and in other miscel­
laneous receipts of $39 7 »000,000.

Another factor was an increase of

$5^6,000*000 in the deduction from gross receipts due to refunds of
taxes,

llet receipts of $38,2*4-6,000,000

in the year just completed

were approximately 3-l/2$ "below the estimate of $39*580,000,000 in the
President’s 3udget of January, 19*49*
Budget expenditures in the year just ended amounted to $*40,057,000,000,
an increase over the fiscal year 19*+2 of $ 6 ,2 6 6 ,0 0 0 ,0 0 0 .

This is ac­

counted for principally by increases under Economic Cooperation Adminis­
tration of $*4*0*41,000 ¿000 (including $3,000,000,000 expended from
Foreign Economic Cooperation Trust Fund); national Military Establish­
ment, $1,88!6-,000,000; Commodity Credit Corporation, $1,789,000,000; and
Veterans' Administration, $*409,000,000.

The increases were partially

offset by decreases in expenditures, principally $ 1 ,7 0 0 ,0 0 0 , 0 0 0 under
the credit to the United Kingdom, and $525,000,000 under the ExportInport Bank.

Total budget expenditures of $*40,057»000,000 were about

3/iO of 1ft lower than the January Budget estimate of $*40,180,000,000.
Public Debt
The gross public debt amounted to $252,770*000*000 on June 3 0 , 19*49,
an increase of $*478,000,000 during the year.

A summary of the changes

during the fiscal year 19*49 in th© various classes of the public debt,
with comparisons for the previous fiscal year, is indicated as follows*

- 3 Changes in Public Debt
(in millions of dollars)
Fiscal
Year
19H9

Classification

...

Fiscal
Year
19^8

Public issues!
Marketable obligations!
+$6,837
- 2,211
-2,086
-7#782
-3

-$2,725
-2,013
- 6,806
+3,221
-3

Total marketable obligations ••••

-5,2^5

-8,330

Nonmarketable obligations!
Armed forces leave bonds ••••••*•••
Special notes (international

-l 6U

- 1,229

-123
+3,000
+39

-913
+959
-1*159
+1,926
-35

Total nonmarketable obligations ..............

+3,210

-U50

Total public issues

- 2,035

-8,781

+2 ,56U

-52

+ 2 .8U5
-58

+1+78

- 5 .99U

Other

Treasury bonds, investment series •
Treasury tax and savings notes «•••
TJ* S, savings bonds
..... .
Other

Special issues
..........
Other obligations *•••••••*»»,••• • •• •••

-5
+U63

As shown in the table above the marketable debt was reduced
$5,21+5,000,000 during the year.

This was made possible largely through

net sales of savings bonds amounting to $3,000,000,000 and the use of
the proceeds of sales of special securities to trust accounts amounting
to $2,56H,0Q0,000.
The refinancing of marketable debt (excluding Treasury bills) which
matured during the fiscal year

19^+9 is shown in the attached table*

The following table shows a reconciliation of the budget deficit
with the change in the public debt for the fiscal year 19^-9 (in millions):

Budget deficit a/
Excess of expenditures in trust

$1,811
128

Sub-total
Decrease in General Fund balance #
Increase in gross public debt

1,939
l»^-6l
U7 8

The Secretary said that this information is being released prior
to the availability of the Daily Treasury Statement for June 30» which
will not be available in printed form until July 5*

Attachment

a/
b/

Takes into account expenditures from Foreign Economic Cooperation
Trust Fund*
Takes into account the clearing account for outstanding checks and
telegraphic reports from Federal Reserve Banks*

Disposition of Matured Marketable Securities
Daring Fiscal Year 19^9 l/
(in millions of dollars)

Date of
maturity
or call

Matured or called securities
Rate of
Interest Amount
Class

7 /i/Us

Certificates
( 3 issues)

9 /1 5 /Ug
9 /1 5 /1*8

Bonds
Notes

1 0 /1 /1*8

10/1/1+3

Payable
in Cash

Disposition
Exchanged
Amount
New Security
1 yr. 1-1/8$ Cert.

$5,783

$6,078

$295

2 - 1 /2 $
1 - 1 /2 $

1*51
3.7*+S

U5 1
152

I8i mo. 1-3/8$ Note

Notes
Certificates
( 2 issues)

1$
1$

l+,092
2,821

180)
198)

1 yr. l-l/l*$ Cert.

<3.912
(2 , 6 2 3

1 2 /1 5 /1+8

Bonds

2$

571

52

1 yr* 1-1/1*$ Cert.

519

1 /1 /1+9
1 /1 /U9

Notes
Certificates

1 -1 /8 $
1 - 1 /8 $

3,535
2,592

236)
196)

1 yr. 1 - 1 /1+$ cert.

(3.299
(2,396

2 /1 /U9

Certificates

1 - 1 /8 $

2 ,1 8 9

196

1 yr. 1-1/1*$ Cert.

1,993

3 /1 /U9

Certificates

1 - 1 /8 $

3,553

1 632

1 yr. 1 - 1 /1*$ cert.

2 ,9 2 2

7/8$

3,596

I

i*/i/i*9

Certificates

1 - 1 /8 $

1 ,0 5 5

92

1 yr# l-l/l+$ Cert.

963

6 /1 /U9
6 /1 5 /1*9

Certificates
Bonds

1 - 1 /8 $
2$

i*,30i
l,Oll*

395)
101)

1 yr. l-l/U$ Cert.

(U,io6
( 913

Total

3 6 ,0 0 0

1
|2,976

Note: Figures are rounded and will not necessarily add to totals*
1 / This table does not take into account a net reduction of about
$2,200,000,000 in the outstanding Treasury Bills*

33.02U

- 4 ~
The Report points out that other matters considered by the
Council include United States Government programs of foreign aid
operative during the postwar period, such as those of the National
Military Establishment, the Office of the Foreign Liquidation
Commissioner and the War Assets Administration, as well as certain
financial aspects of the proposed military assistance program#
The Council was also consulted on the lending activities of the
Export-Import Bank during this period.
As in prior periods, the current Report contains a comprehensive
appendix of statistical tables highlighting various aspects of the
United States Government's postwar foreign assistance programs.
These tables show not only the amounts made available to each
recipient country, but also, in the case of loans, the total postwar
commitments made by the major United States Government lending agencies
to each foreign country.

Information on gold transactions with leading

countries is likewise included in this section of the Report.

In its

analysis of these data, the Council noted that, during the postwar
period July 1, 1945, to December 31, 1948, the United States made
available $26.5 billion for foreign assistance, of which $20.1 billion
was utilized or expended, and $6 . 4 billion remained as an unutilized
balance on December 31, 1948.

About one-half of the unutilized balance

represented ECA funds largely already committed under contracts for
approved purchases, and nearly $ 1 billion more constituted uncommitted
lending authority of the Export-Import Bank.

,

- 3 ~

The Council, in the exercise of its statutory responsibilities,
continued to coordinate the activities of the United States repre­
sentatives of the International Monetary Fund and the International
Bank for Reconstruction and Development with those of other agencies
of the Government, by consulting and advising with them on major
»
problems arising in administration of the Fund and the Bank.
In its review of the operations of the International Monetary
Fund, the Council noted that further progress had been made in
establishing the Fund as the international organization for technical
consultation and advice on foreign exchange problems.

The Report

points out that, during the initial two years of operations —

from

March 31, 1947, to March 31, 1949 — * total currency sales of the
Fund amounted to 1713,600,000.
With respect to International Bank operations, the Council noted
that, from May 9, 1947 (■when the Bank made its first loan), through
March 31, 1949, loan commitments aggregated slightly over #650,000,000.
Over two-thirds of these funds had been disbursed by the latter date.
Uncommitted loanable dollar funds of the Bank amounted to approximately
#385,000,000 on March 31, 1949*

The Council pointed out that the Bank

now has progressed well into the developmental phase of its lending
program and that it may be expected to assume an increasingly greater
share of the financial burden of world-wide developmental and moderniza­
tion programs

- 2 -

In its discussion of the relationship between United States
postwar foreign assistance and changes in gold and short term dollar
balances of foreign countries, the Report indicates that the EHP
countries, in particular, suffered losses in their monetary reserves
during the early postwar years in their efforts to meet the overall
deficit in their balance of payments.

In order to purchase essential

goods from the United States and other countries, the ERP countries
drew down over $2.5 billion from their gold and dollar assets during
the 3 1 / 2 year period from July 1945 through December 1948.

Most of

these drawings occurred prior to the start of the Recovery Program.
According to the Report, it was the view of the Council that further
reduction in reserves should not be a requisite to receiving continued
United States assistance but that ECA allocations should not be
made for the specific purpose of building up foreign exchange reserves#
With respect to financial aspects of the President’s Program
for Underdeveloped Areas (Point IV), the Report states that the Council
considered proposals designed to encourage the flow of private invest­
ment capital abroad, particularly relating to the negotiation of
treaty provisions covering protection of United States foreign invest­
ment, government guaranties to investors against certain risks, and
tax incentives*

Treasury Department
Office of International Finance

m.à
I

Date _________ __J»Re„£.CU_..1949

Si
on Inte
to the ;

To:

Bob Dillon

From:

Sid Wac

Attached are tWe-erdpies of the draft press
release for the current NAC Semiannual Report.
This draft has been cleared by:

activitj
includi;

Paul Dickens (as acting Director of OIF)
Biting Arnold
Allan Fisher
Harold Rosen
Bmanuel Miuskoff
Walter Woodruff (BCA)
Edward Lynch (EX-IM Bank)

program)
national
and Devi
Dui
as the Ci
Program J
included
extendeq
resultiri
exchange
guaranty
count rie[
in accom
tion and!
stability,

i

i

Draft Press Release
NAC Report, October 1948 March 1 9 4 9

Secretary Snyder, as Chairman of the National Advisory Council
on International Monetary and Financial Problems, today transmitted
to the President and to the Congress a Report of the Council’s
activities during the six months period ending March 31, 1949,
including those relating to financial aspects of ERP and other
programs, as well as participation of the United States in the Inter­
national Monetary Find and the International Bank for Reconstruction
and Development.
During the six months period, the Council continued to serve
as the consultative body on financial aspects of the European Recovery
Program.
included:

The financial problems of the ERP reviewed by the Council
policy regarding that part of assistance that may be

extended on a credit basis, the utilization of counterpart funds
resulting from aid rendered in the form of grants, problems of
exchange rates, questions relating to conditional aid, and the ECA
guaranty program.

The Report notes that many of the participating

countries made substantial progress during the first year of ERP
in accomplishing some of the initial objectives of expanding produc­
tion and facilitating trade and in attaining internal financial
stability.

i

TREASURY DEPARTMENT
Information Service

IMMEDIATE RELEASE,
Tuesday, July 5 , 19^9»

WASHINGTON, D .C .

S-2045

Secretary Snyder, as Chairman of the National
Advisory Council on International Monetary and Financial
Problems, today transmitted to the President and to the
Congress a Report of the Council’s activities during the
six months period ending March 31* 1949* including those
relating to financial aspects of ERP and other programs,
as well as participation of the United States in the
International Monetary Fund and the International Bank
for Reconstruction and Development.
During the six months period, the Council continued
to serve as the consultative body on financial aspects
of the European Recovery Program. The financial problems
of the ERP reviewed by the Council included: policy
regarding that part of assistance that may be extended on
a credit basis, the utilization of counterpart funds
resulting from aid rendered in the form of grants, problems
of exchange rates, questions relating to conditional aid,
and the ECA guaranty program. The Report notes that many
of the participating countries made substantial progress
during the first year of ERP in accomplishing some of the
initial objectives of expanding production and facilitat­
ing trade and in attaining internal financial stability.
In Its discussion of the relationship between United
States postwar foreign assistance and changes in gold and
short term dollar balances of foreign countries, the Report
indicates that the ERP countries, in particular, suffered
losses in their monetary reserves during the early post­
war years in their efforts to meet the overall deficit In
their balance of payments. In order to purchase essential
goods from the United States and other countries, the ERP
countries drew down over $2 . 5 billion from their gold and
dollar assets during the 3 1/2 year period from July 1945
through December 1948. Most of these drawings occurred
prior to the start of the Recovery Program. According to
the Report, it was the view of the Council that further

2
reduction in reserves should not be a requisite to
receiving continued United States assistance but that ECA
allocations should not be made for the specific purpose
of building up foreign exchange reserves.
With respect to financial aspects of the President's
Program for Underdeveloped Areas (Point IV), the Report
states that the Council considered proposals designed to
encourage the flow of private investment capital abroad,
particularly relating to the negotiation of treaty pro­
visions covering protection of United States foreign
investment, government guaranties to investors against
certain risks, and tax incentives.
The Council, in the exercise of its statutory
responsibilities, continued to coordinate the activities
of the United States representatives of the International
Monetary Fund and the International Bank for Reconstruction
and Development with those of other agencies of the
Government, by consulting and advising with them on major
problems arising in administration of the Fund and the
Bank.
In its review of the operations of the International
Monetary Fluid, the Council noted that further progress
had been made in establishing the Fund as the international
organization for technical consultation and advice on
foreign exchange problems. The Report points out that,
during the initial two years of operations
from
March 31* 19^7* to March 3 1 , 19^9 ■*- total currency sales
of the Fund amounted to $713,600,000.
With respect to International Bank operations, the
Council noted that, from May 9 , 1 947 (when the Bank made
its first loan), through March 31* 19^9* loan commitments
aggregated slightly over $650,000,000. Over two-thirds
of these funds had been disbursed by the latter date.
Uncommitted loanable dollar funds of the Bank amounted to
approximately $385,000,000 on March 31* 19^9. The Council
pointed out that the Bank now has progressed well into the
developmental phase of Its lending program and that it may
be expected to assume an increasingly greater share of the
financial burden of world-wide developmental and modernization
programs.

I

- 3 The Report points out that other matters considered
hy the Council include United States Government programs
of foreign aid operative during the postwar period, such
as those of the National Military Establishment, the
Office of the Foreign Liquidation Commissioner and the
War Assets Administration, as well as certain financial
aspects of the proposed military assistance program.
The Council was also consulted on the lending
activities of the Export-Import Bank during this period.
As in prior periods, the current Report contains a
comprehensive appendix of statistical tables highlighting
various aspects of the United States Government’s postwar
foreign assistance programs. These tables show not only
the amounts made available to each recipient country, but
also, in the case of loans, the total postwar commitments
made by the major United States Government lending agencies
to each foreign country. Information on gold transactions
with leading countries is likewise included in this section
of the Report. In its analysis of these data, the Council
noted that, during the postwar period July 1, 19^5* to
December 31, 19*1-8, the United States made available
$26. 5 billion for foreign assistance, of which $20.1
billion was utilized or expended, and $6.4 billion remained
as an unutilized balance on December 31* 19^8. About one«»half of the unutilized balance represented ECA funds
largely already committed under contracts for approved
purchases, and nearly $1 billion more constituted ioncommitted lending authority of the Export-Import Bank.

oOo

REPORT OF ACTIVITIES OF THE NATIONAL ADVISORY COUNCIL
ON INTERNATIONAL MONETARY

a ND

FINANCIAL PROBLEMS

OCTOBER 1, 1948 - MARCH 31, 1949

C O N T E N T S

II*

III.

UNITED STATES POSTWAR FOREIGN ASSISTANCE:
Foreign aid during the last half of 1948.
Programs of postwar assistance...... «...
Geographical distribution of aid
Foreign aid and the United States postwar
balance of payments•........9
Changes in foreign gold and dollar reserves..,.»..
ACTIVITIES OF THE COUNCIL FROM OCTOBER 1, 1948 TO
MARCH 31, 1949 (OTHER THAN THOSE RELATING TO THE
INTERNATIONAL MONETARY FUND AND THE INTERNATIONAL
BANK):
European Recovery Program:
The first year of ERP...,«••••«• ................
Appropriation request for second year program
of ERP.... ................................. .
Financial aspects of European recovery»••••*..••
Exchange rates...............
Loan policy................. ..................
Foreign gold and dollar balances...............
Blocked a
s
s
e
t
s
.... .
Local currency funds •••••••.... .
*.... .
Conditional aid..........
ECA guaranty p
r
o
g
r
a
m
.... .

p

Page
h

ORGANIZATION OF TH$ COUNCIL:
Statutory basis i .i«i '(«» *. ••.• ...... .,..,
Reports
...... ••
Membership **«•<,••••••••«.••«•»•»..»••«.«

O' vn ui

i;

11

13
15
15

16
17
17
17
18
23
23

Assistance for Asia:
Ch ina .....................................
Japan.................
Ryukyu Islands................ .....
Korea...............................

24
24
25
26

Export-Import Bank credits:
Wood processing industry in Finland.............
Power development in Brazil................ .....
Agricultural development in Haiti.»..... .
Steel expansion in Chile••••*.••.»•»•......
Economic development of Israel.,,.....»......
Highway const ruction in Bolivia «•••»••••••.....
Other credits......................

26
26
27
27
27
28
28

War Assets Administration credit agreements..,,....
President's program for underdeveloped areas......
Financial aspects of military assistance........*«
Joint Brazil-United States Technical Commission..«

31
32
32
32

i
i

IV.

ACTIVITIES OF THE COUNCIL FROM OCTOBER 1, 1948, TO
MARCH 31, 1949 RELATING TO THE INTERNATIONAL MONETARY
FUND AND THE INTERNATIONAL BANK FOR RECONSTRUCTION AND
Page
DEVELOPMENT:
Membership chaiges in the FUnd and the Bank........... 3 3
Organizational changes.................................. 3 3
The FUnd:
Par values «
.
«
Exchange restrictions..........................
Gold sales at premium prices*..,....................
FUnd exchange transactions.....»..»,................

33

34
33
36

The Bank;
Loans and disbursements••••••••••••....... •••••••••
38
Sales of guaranteed obligations........ .............
40
Repayments............»••••••••,,,.................. 4 1
Legislation.........«.a .
.
.
.
#a.»... 41
Fiscal o
p
e
r
a
t
i
o
n
s
4. 1
Future lending,....,......................

ii

42

TABLES

Table

1«
II*

III*

IV,

Page
United States Government foreign grants and credits,
utilized, July 1, 1945 to December 31« 194-8, and un­
utilized as of December 31« 1948— by geographical area«
Sum of utilized plus u n u t i l i z e d . , . * . , . . , , , « , , 4
Separate data for utilized and unutilized— by
country,, ..........................•«...... ,,,,««•„«
7
Foreign aid in the United States balance of payments,
July 1, 1945 to December 31, 1948, by semiannual periods#, 10
Estimated foreign gold and short-term dollar balances,
June 30, 1945 to December 31, 1 9 4 8 , • • • • . « , * • • « . , .

11

V,

E.G.A* allotments to participating countries,
April 1948 to March 1949, by type of aid,..,.•••••••«,..«• 14

VI*.

Status of European local currency counterpart
accounts under the Foreign Assistance Act of
1948, as of April 2, 1949............... ................ . 19

VII,'

VIII,

IX,

X.

XI,

Status of the United States portion (i$) of counterpart
funds under the Foreign Assistance Act of 1948, as of
April 2, 1949#•••••....... *...........21
Net credits authorized by the Export-Import Bank,
July 1, 1945 to March 31, 1949,.,...... .

29

War Assets Administration credit agreements
with foreign governments, as of February 28, 1 9 4 9 . . 3 1
Currency Sales of the International Monetary Fund,
from March 31, 1947 through March 31, 1949— by
six month periods......................................... 37
Status of International Bank loans, as of
March 31, 1949........... ............................

iv

40

Report

of activities of the national advisory council
on international monetary and financial PROBLEMS

OCTOBER 1, 194g TO MARCH 31, 1949
X.

QRSANIZATION OF THE COUNCIL
i

STATUTORY BASIS
The National Advisory Council on International Monetary
and Financial Problems was established by the Congress in the
Bretton Woods Agreements Act (59 Stat. 512, 22 U. S. C. 286b),
approved July 31, 1945. The statute directed the Council to
coordinate the policies and operations of the representatives
of the United States on the International Monetary Fund and
the International Bank for Reconstruction and Development,
the Export-Import Bank of Washington, and all other agencies
of the Government H to the extent that they make or participate
in the making of foreign loans or engage in foreign financial,
exchange or monetary transactions.11 The Council was also
directed to advise and consult with the President and the
United States representatives on the Fund and the Bank on
major problem^ arising in the administration of the Fund and
the Bank; and to recommend to the President general policy
directives for the guidance of the representatives of the
United States on the Fund and Bank. The Bretton Woods Agree­
ments Act was amended by section 106 of the Foreign Assistance
Act of 1948 (62 Stat. Ch. 169, 22 U. S. C. 286b (a)), approved
April 3, 1948, to include the Administrator for Economic
Cooperation as a member of the Council for the duration of
this office. The Council was also given certain additional
duties under the Foreign Assistance Act. The relevant portions
of the Bretton Woods Agreements Act and of the Foreign Assistance
Act of 1948 are presented in appendix A.
REPORTS
Since its first meeting on August 21, 1945,. the Council has
submitted eight formal reports. 1/ The present report covers
the activities of the Council from October 1, 1948 to March 31,
1949.

1/ These reports were transmitted by the President to the Congress
on March 1, 1946 (H. Doc. No. 489, 79th Cong., 2d sess.; sub­
sequently included as appendix B to H. Doc* No. 497, 79th Cong.,
2d sess.); March 8, 1946 (H. Doc. No. 497, 7Sth Cong., 2d sess.);
January 13, 1947 (H. Doc. No. 53, 80th Cong., 1st sess.); June 26,
1947 (H. Doc. No. 365, 80th Cong., 1st sess.); January 19, 1948
(H. Doc. No. 501, 80th Cong., 2d sess,)*. May 17, 1948 (E. Doc.
No. 656, 80th Cong., 2d sess.); August 3, 1948 (H. Doc. No. 737,
80th Cong., 2d sess.); arid March 14, 1949 (H. Doc. No* 120,
81st Cong., 1st sess.).

MEMBERSHIP
The members of the Council, according to law, during the
period under review, were the followings
The Secretary of the Treasury, John W. Snyder,
Chairman.
The Secretary of State, Dean Acheson.
The Secretary of Commerce, Charles Sawyer.
The Chairman of the Board of Governors of the
federal Reserve System, Thomas B. McCabe.
The Chairman of the Board of Directors of the
Export-Import Bank, Herbert E. Gaston.
The Administrator for Economic Cooperation,
Paul G. Hoffman.
Two changes in the membership of the Council have occurred
since the previous report.- Mr* Dean Acheson succeeded Mr. George C.
Marshall as Secretary of State, and Mr. Herbert E. Gaston succeeded
Mr. William McChesney Martin, Jr. as Chairman of the Board of
Directors of the Export-Import Bank.
3y agreement, the following served as alternates!
William McChesney Martin, Jr., Assistant
Secretary of the Treasury.
Willard L. Thorp, Assistant Secretary of
State for Economic Affairs.
Thomas C. Blaisdell, Jr., Assistant Secretary
of Commerce.
M. S.' Szymczak, Member of the Board of Governors
of the Eederal Reserve System.
Hawthorne Arey, Vice Chairman of the Board of
Directors of the Export-Import Bank.
Wayne C. Taylor, Assistant to the Administrator,
Economic Cooperation Administration.
C. Dillon Glendinning is the Secretary of the Council.
The United States Executive Directors on the International
Monetary Pundr Erank A. Southard, Jr., and on the International
Bank for Reconstruction and Development, Eugene R. Black, or
their alternates^Henry J. Tasca and John S. Hooker, respectively,
regularly attended the meetings of the Council.

Chart 1

UNITED STATES GOVERNMENT FOREIGN ASSISTANCE
Julyl,l945 to December 3 U 9 4 8
TO T A L UTILIZED.
By Semiannual Periods

July-Dee. . Jan.-June July-Dee. Jan.-June July-Dec. Jan.-June July-Dee.
1945
1------- 1946 ------- 11------ 1 9 4 7 ------- 11------ 1948

Credits__0.6
Grants__ 2.0

13

1.3

2.0
jo

2.4

1.2

1.8
Q9

1.0
1.7

0.6
23

TOTAL UTILIZED AND U NUTILIZED

$BII> _

Unutilized
(A s of Dec. 31,1948)

Credits__ 2.4
U tilized
(July 1,1945 to Dee.31.1948)

Grants— 4.0
Total__ 6.4

20
Credits___9.6

Grants___10.5

- 3 ~

II*

T/
UNITED STATES POSTWAR FOREIGN ASSISTANCE-7

Throughout the year 19^8» the United States continued to pro­
vide foreign countries with substantial assistance both to relieve
immediate economic distress and to aid in longer run reconstruction
efforts* The year was marked by the inauguration of the European
Recovery Program, in which United States assistance became part of
a joint program of cooperation with participating European countries.
By the end of the year, aid rendered under that program, mainly in
the form of grants, totaled about 1.9 billion dollars of the 5 . 5
billion of aid rendered by all agencies to foreign countries in
1 9 ^8 .

In order to meet certain emergency needs prior to the
establishment of the European Recovery Program, assistance to
Prance, Italy, and Austria had been provided under an interim aid
program. This program, starting in December, 19^7» involved about
$ 5 5 0 ,0 0 0 , 0 0 0 of aid in the form of grants, concentrated in the
first half of 19^8. The major relief-type program of the United
States Government, continuing from previous years, was that of
furnishing civilian supplies to areas occupied by our armed forces.
Initiated in the war period to prevent civilian disease and unrest
prejudicial to our forces abroad, it accounted for about 1 . 2 billion
dollars of aid utilized in 19^8* Other aid rendered on a grant
basis totaled about $8 3 5 ,0 0 0 ,0 0 0 , aid included the program started
in 19^8 for economic and military assistance to China, as well as
programs continued from the previous year, such as those for GreekTurkish assistance, Philippine rehabilitation, the International
Refugee Organization, post-UNBRA, and the International Children*s
Emergency Fund.
on a loan basis in 1 9 ^ 8 , other than that extended under
the European Recovery Program, totaled about 1.1 billion dollars.
Export-Import Bank credits utilized were approximately $430,000,000
of this total, and the remainder was made up, for the most part, of
programs that for all practical purposes ended in 19^8. The United
Kingdom made its final drawings of credit authorized under the
Anglo-American financial agreement of 19^5* an^ by the end of the
year, utilizations under the various property credit programs such
as surplus property, lend—lease and merchant ship disposals were
coming to a close.

If

A detailed break-down of the statistical information referred
to in this section appears in appendixes B and C,

During the post-war period, July 1, 19**5 through December 3 1 *
19^8, the United States Government made available 26.5 billion
dollars for foreign assistance of which 20*1 billion dollars was
utilized or expended* and 6,*+ billion dollars remained aa an
unutilized balance on December 3 1 * 19*+8* About one-half of all
unutilized funds at the end of 19*+8 were ECA funds, principally
earmarked either for specific purposes or for the aid of specific
countries and largely already committed under contracts for approved
purchases* Somewhat less than a billion dollars represented
uncommitted lending authority of the Export-Import Bank* The amount
of aid utilized in 19**8 (5*5 billion dollars) was approximately
equal to that extended in 1 9 *+6 , but somewhat less than the 19*+7
total of 6**+ billion dollars. The increasing momentum of the
European Recovery Program during the latter part of 19*+8 resulted
in increasing the total aid rendered in the final quarter of 19*+8
to the average quarterly rate prevailing in 1 9 **7 *
The year 19*4-8 was marked by a larger share of assistance
rendered in the form of grants, including (for statistical purposes)
aid for which terms of repayment had not been determined, as compared
with loans and other credits which call for the repayment of
principal and interest to the United States* This situation also
holds true in the foreign aid totals for the entire postwar period,
during which funds made available through Congressional authorization
for grants were 1**#5 billion dollars, compared to 1 2 * 0 billion
dollars for credits* Aggregate grant and credit availabilities
from July 1, 19*+5 through December 3 1 , 19*4-8, distributed by
geographical area, are presented in the following tables
Table I - United States Government foreign aid, sum of utilized,
July 1, 19*4-5 to December 3 1 , 19*+8 plus unutilized as
of December 3 1 , 19*4-8, by geographical area
(in millions of dollars)

Area

TOTAL, ALL AREAS,.*

TOTAL, EUROPE.#**,»
ERP Participants
Other Europe#*,,
Latin America**••••
Asia.... .
Miscellaneous.*****

TOTAL

Grants

Credits

2 6 ,5 2 2

1 ^ .5 0 7

1 2 ,0 1 5

191^53

1 0 ,0 5 2

9 .,tor
(8 ,9 1 5 )
(*+86)

(17.659) (8,9*W)
(1.59*0 (1,108)
515

**,**98
2 ,0 5 6

33
3.74-6
676

**82
752
1.380

Chart 2

UNITED STATES GOVERNMENT*FOREIGN ASSISTANCE
Utilized, Six Month Period, July I, to December 31,1948
I'm » .!,,,.

-, ■

SOURCES OF AID

O th e r
S ta te D ept.

r Defense
A gen cies

Other
E x p o rt im p o rt Bank
EC A

Credits

Grants

0.62

2.30
* Prin cip ally a id to the Philippines and to China.

*

P rin cip a lly a id to Greece and Turkey.

RECIPIENTS OF AID
(In Millions of Dollars)

;r p

M ise. $ 9 9

p a r t ic ip a n t s
Other E R P
A u stria

N e th erlan d s
G reece

$199

$1 0 0

ASIA
Japan $212

$120

$174

China $170

P hilip. $ 9 8

Italy $184

K.O ther

F ra n ce $ 3 9 9
U n ited
Kingdom

Germ any (W estern) $ 4 9 2

$6/5

- 5 ~

FOREIGN AIR DURING THE LAST HALF OF
During the last six months of 19^-8, actual utilization of
United States Government, foreign aid was slightly less than 3
billion dollars. Funds for more than three-fifths of this 3
billion dollars were supplied through the Economic Oooneration
Administration, with another fifth through the defense agencies#
and the balance primarily through the State Department (for GreekTurkish aid), the Expo reimport Bank, and the Philippine War
Damage Commission, The share of aid going to the EBP participants
in this period constituted almost 80 percent of the total, with
the United Kingdom, Western Germany, France, Italy, and Greece, the
chief recipients, Asiatic countries received slightly less than
one-fifth of the total, about the same percentage that they
received for the entire postwar period,
PROGRAMS OF POSTWAR ASSISTANCE
The changes over the period July, 19^5 to December, 19^8 reflect
the shifting importance of loans and grants in the various postwar
programs of foreign assistance» For example, during the six months
ending December, 1 9 U 5 , grants were the dominant factor as a result
of the aid furnished through direct lend-lease. In the following
year, grant assistance was supplied chiefly through the United
Nations Relief and Rehabilitation Administration, followed in
importance by civilian supplies provided by military agencies to
occupied areas. However, credits became the predominant factor
in the foreign financial program in 19^-6 as a result of the increased
activity of the Export-Import Bank, surplus property disposals, and
the initial drawings under the Anglo-American financial agreement*
In 19^7 the bulk of the 3 . 7 5 billion dollar loan to the United
Kingdom was utilized. This utilization not only was responsible
for the high level of foreign assistance rendered during that year,
but also had the effect of enlarging the credit portion of the
foreign aid program. By I9 US only a small portion of the loan to
the United Kingdom remained available for expenditure, with the
consequent drop in the proportion of loans as well as in the
total of grants and loans extended. In addition, Export-Import
Bank credit utilizations decreased significantly from the preceding
two years, while at the same time# the European Recovery Program
was initiated largely on a grant basis*

- 6 ~

GEOGRAPHICAL DISTRIBUTION OF AID
Approximately two out of every three dollars of expenditures
for United States foreign aid during the entire postwar period
were for countries that are currently participating in the European
Recovery Program, and these countries were also scheduled to
receive about three-fourths of all unutilized funds that had been
allocated as of December 31# 19^-8* Among the larger European
recipients of utilized aid, credits exceeded grants for the
United Kingdom, France, the Netherlands, and Belgium* Other
countries, such as Italy, Greece, and Austria relied very heavily
on grants# Assistance to other European countries resulted chiefly
from the extension of grant assistance through UNRRA*
. Table II, showing a breakdown of utilized as well as unutilized
postwar United States Government foreign grants and credits for
each geographical area and recipient country, follows:

Chart 3

UNITED STATES GOVERNMENT FOREIGN ASSISTANCE
By Major Countries in Each Area
UNUTILIZED

UTILIZED

(As of 0ec.3l.l948)

(July 1,1945 to Dec. 31,1946)
BILLIONS OF DOLLARS

.8

1.2

12

L6_________ 2.0

1.6

t

.0

BILLIONS OF DOLLARS

- 7 ~
TaUle XI — U. S. Government foreign grants and credits ; utilized,
July 1, 1945 to December 31, 1948, and unutilized as
of December 31, 1948, by area and country

-------------------. ------..
..............
---.. .........
— — ... Cln ..mil l i ons .p f d o llars).

..........i
U N U T I L I ZED

U T I L I Z S D
Area or Country

TOTAL

Grants

Credits

TOTAL

Grant b j Credits

TOTAL, ALL ABBAS..... .

►

20,139

10,471

9,668

6,383

4,036

2,347

t o t a l , e e p p a r t i c i p a n t s ..

•

13,845

5,774

8,071

4,014

3,171

843

United Kingdom,
g
France,
Germany (western),,,,,.
11aly♦.*«,,«••••«••«*,,

5,378
2,785
1,781
1,423

773
699
1,556
1,071

4,605
2,086
225
352

578
695
707
477

466
584
688
405

113
111
19
73

Greece
Netherlands,
A u s t r i a , ........ i
Belgium & Lux,,,,,,,,,, /

841
446
441
299

730
117
431
108

111
330
19
191

258
359
151
143

234
286
134
103

25
73
17
40

Other BRP,«,«,,•«,,«,,« ,
Unallocated BRP,,,.,,,,

286
164

134 \ 152
164a Ï £ ---

413
333

220
51

193
183

7
OTHER EUROPE............

1,562

1,108

454

33

— —»

32

TOTAL, ASIA,

3,629

2,957

672

869

789

80

1,643
1,242
365
214

1,416
1,036
285
189

227
216
79
35

249
331
169
86

232
312
160
86

17
19
9
*—

165

41

124

35

—

35

INT'L ORGANIZATIONS^/.,,,,

520

517

3

131

68

63

LATIN AMERICA,

317

29

388

199

5

104

MISC. & UNALLOCATED.

267|

88

180

1,139!

China.
Japan,
Philippines,
Korea (s outhern)
Other Asia*

Notes:

3
1,136 3/1
— .. ■ ,
i------a) Components will not necessarily add to totals because of rounding,
b) A detailed analysis of data appearing in this table, as well as a
definition of terms, may be found in appendix C,
c) Grants to EEP participants include conditional aid,
¿7 Principally shipments to Prance, Germany and the Low Countries under
joint military-civilian supply operations with the United Kingdom
and Canada,
2J Represents United States Government contributions to UNRRA (not
allocated by country), and a. loan to the United Nations, United
States Government payments to the International Bank and the
International Monetary Fund are not included in this table,
(Footnotes continued on next page)

Footnotes icont*d^
3/
~

Includes $967,000,000 representing the uncommitted lending
authority of the Export-Import Bank, and $150,000,000
representing the uncommitted commodity—orogram credit authority
of the Department of the Army on December 31, 1948#
Source:

IE

I

i

a

Clearing Office for Foreign Transactions, Office
of Business Economics, Department of Commerce,

- 9 -I
Total credits utilized "by 6,11 ERP countries ill the postwar
period exceeded grants, while total grants utilized "by the Asiatic
countries were more than four times their total credits* China
received 1.6 billion dollars and Japan 1.2 billion dollars of the 3.6
billion dollars of total postwar assistance rendered by the United
States to Asia, with the Philippines and Korea receiving most of the
remainder.
POBEIGN AID AND THE UNITED STATES POSTWAR BALANCE OP PAYMENTS
Total exports of goods and services of the United States
amounted to 58.7 billion dollars between July 1945 and December
1948. The United States received 30.3 billion dollars in foreign
goods and services, leaving a difference of 28.4 billion dollars
to be financed from other sources. To cover their deficit with ^ ^
the United States in the 3-1 ¡2 year period, foreign countries
drew a total of 6.3 billion dollars from their gold and dollar
assets, and received about 19.0 billion dollars in net United States
Government aid. Other elements included assistance from international
financial institutions and private financing.

Chart 4

FOREIGN AIDINTHEU.S.BALANCE OFPAYMENTS
July 1,1945 to Dec. 3!, 1948, Semiannually
Soil.

' Total
\'///////////////\
Y //////////////Ä

Exports of
Goods and
Services

Liquidation o f Foreign
Gold and Dollar Assets

U S Government A id (Net)

Imports o f Goods and Services

51.079,000,000.

*The m eans o f fin an cin g shown fo r the p e rio d Ju ly through D ecem ber 1945, exceed expo rts by
which represents the ne t foreign acqu isitio n o f d o lla r assets a n d purch ase s o f g o ld from the U n ite d S tates

3

Year Period, July 1,1945 to Dec. 31,1948
(BILLIONS OF DOLLARS)

^

__ 3.1

Miscellaneous

Jill Liquidation ofForeign

tP

Gold and Dollar
Assets

_____ „6.3

A-U.S. Government
Aid (Net)__________

^

Imports of Goods
and Services.

19.0

_30.3

•f

10

Table III - Foreign aid in the'United States balance of myroentSj.
July 1. 1945 to December 31. 1948. fry Semiannual periqd§,
(In millions of dollars)
tv1,
Total
exports

Period

TOTALi«i.w *

1945,
July-Dee•

1946
Jan-June.
July-Dee •

1947
J an-June•
July-Dee.

1948

1
j
Jan-June.
July-Dee, !

MEADS OF FINANCING
U.S.
Gov1
t
Liquidation } Other
Tòt ài j
itoportjfe aid (net) if) of gold and
! dollar aaafiisä/

6,260

58,698 30,254 19,051
7,300 4,143j 3,628

-1,078 3/

i

73,133

I
i
1

507

7,401 3,416
7,565 3,751

2,681
2,372

816
1,152

488
290

10,093 4,171
9,648 4,292

3,293
2,419

2,340
2,173

289
764

8,644 5,057
8*147 j 5,424

2,130
2,528

-891
- 34

566
229

—

1/ Data on United States Government foreign aid (net) presented in thu
• table and chart 4 differ from those in chart 1 and the statistical
apoendix for the following reasons:
(a) Aid shown in the above table is net of unilateral transfers to
the United States, repayments, etc., whereas gross data appear in
(b) Pensions, annuities, claims of individuals, etc., are i n d ù e
in this calculation of net aid, but are excluded in chart 1.
(c) Included in the calculation of net aid are lend-lease shipments
and merchant ship deliveries, whereas aid apnearing in chart 1 is
based on lend-lease billings and mortgages signed, both of which lag.
As a result of these lags, net aid figures reported for the earlier
period in the above table exceed those appearing in chart 1.
3/

Figures in this table differ from those which could be derived from
table IV principally because this table includes gold sold out of
current oroduction, as well as liquidation of existing holdings.

3/

The means of financing shown for the period July through December
1945, exceed exports by $1,078,000,000, which represents the net
foreign acquisition of dollar assets and purchases of gold from
the United States*

Source?

International Economics Division, Office of Business Economics,
Department of Commerce*

~

I

11—

From chart 4 and table i n , it may be observed that United
States exports increased from the latter part of 1945 through the
first half of 1947. there followed a moderate decline from the
high level of exports reached during the first half of 1947 while
imports rose. Exports have increased both in value and physical
terms in comparison with the prewar period.
Changes in the United States balance of payments during 1948,
compared with 1946 and 1947, were the result of two major develop­
ments. The first of these was the continued progress of recovery
and production in foreign countries which enabled them to supply a
larger portion of their own needs and to increase their exports to
the United States. A second major factor in reducing the United
States export surplus was the increasing difficulty of countries in
making dollar payments. This difficulty appeared acute during 1947
and has continued, with varying degrees of intensity in different
countries, throughout 1948.

I

CHANGES IN_ FOREIGN GOLD AND J)OLLAR RESERVES
Countries which had borne the brunt of the war effort and had not
accumulated large reserves have had difficulty since the end of the
war in financing their import requirements. By 1948 most of the
countries which had built up their reserves during the war had used
the bulk of such accumulations, and the shortage of gold and dollars
became widespread. The reserves of most countries, furthermore,
were at levels so low as seriously to impair their ability to meet
contingencies in international payments. The reserves of many
countries were far below the levels that would be requisite to the
reestablishment of multilateral trade and the relaxation of foreign
exchange controls*
Table IV - Estimated foreign gold and short-term dollar balances
June 30, 1945 to December 31, 1948i/
(In millions of dollars)
December 31
June 30,
1946
1947
1945

Area

TOTa L, ALL AREAS......
ERP countries and
Dependencies.•••••.
Other Europe—'.......

I

Asia and Oceania.....
Latin America..••••.•
All other.••••••....
.

j
1948

19,684

19,292

15,136

14,863

10,473
1,029

9,967
1,104

7,762
1,043

7,804
840

1,980
3,625
2,577

1,994
3,642
2,585

1,832
2,877
1,622

1,969
2,744
1,506

.... - ....

1/

Excludes holdings of the International Monetary Fund, the
International Banx, and other international organizations;
also excludes U.S.S*R. gold holdings.

2/

Includes gold held by Tripartite Commission for the
Restitution of Monetary Gold.

Source:

Treasury Department and Board of Governors of the
Federal Reserve System*

-

12

~

A decline in total foreign gold ¿7 and short-term dollar
balances of about 4.5 billion dollars between June 30, 1945 and
December 31, 1947 ie reflected in table IV. In 1948, the decline
amounted to only about $273,000,000 for the year. The overall
decline of 4.8 billion dollars between July 1945 and December 1948
was accounted for chiefly by a reduction in the balances of SEP
countries of 2.7 billion dollars and a decline in Latin American
balances of about $900,000,000* It should be noted that these
figures represent net declines after taking into consideration
foreign gold production %J in the neighborhood of 2.5 billion
dollars during the 3 l/2 year period.
The BSP countries, in particular, suffered losses in their
monetary reserves during the early postwar years in their efforts
to meet the overall deficit in their balance of payments. The dollar
needs of the recipient countries have been greatly in excess of the
goods and services supplied by these countries to the United States.
Direct United States aid has made possible European dollar payments
to other areas of the world, as well as purchases from the United
States.

]J

Excluding U.S, S.R,

- 13 -

III.

ACTIVITIES OF THE COUNCIL FROM OCTOBER 1. 1948, TO
MARCH 31« 1949 (OTHER THAN THOSE RELATING TO THE
INTERNATIONAL MONETARY FUND a N D THE INTERNATIONAL
bank!
"
EUROPEAN RECOVERY PROGRAM

The first year of ERP
Many of the participating countries made substantial
progress during the first year of the recovery program in
accomplishing some of the initial objectives of expanding pro­
duction and facilitating trade and in attaining internal fi­
nancial stability. Notable signs of financial improvement
were reflected in balanced budgets and fairly stable price
levels in a number of countries.
In conformity with the Economic Cooperation Act of 1948,
the Council worked closely with ECA on the financial problems
of the recovery program, and made recommendations on the divi­
sion of aid by type, i.e. grants (direct or conditional) and
loans. The following table summarizes the allotments by country
and type of aid for the first year of the programs

.T.U-

Table V ~ ECA allotments to participating countries
April 1948 - March 1949, by type of aid ] J
... ......

Country

T ssa a m a a m wiauHwmxtm i ; W <«»»>1—
^
Grant s
~ TOTAL ~

ALLOTMENTS

Conditional
Aid
Direct

972.3 J f 3.449.4

531.3

313.0
172.0
67.0

773.8
882.5
490,8

229,3
7,1
28.1

507*0
473.9
228.7

146.7
— *—

437.8
323.1
228,7

69*2
4.1
***•"

206,7
176.8
103*0

57,4
wr««»
31*0

3,0
176.8
68.2

146.3
— ■--3.8

Ireland.
Norway««
Turkey.

88.3
82.8
46.7

88.3
35*0
38.0

37,0

....—
10,8
8.7

Sweden,

40.4
13.8
10.0

21.6
t--

ALL ERP COUNTRIES.i..

¿4.953.0

United Kingdom..*..
France,
Italy*,*.

1*316,0
1,061,6
585,9

Germany (western)..
Netherlands,
Austria# +••»#•»*••»
Bel gium-Luxemb our g.
G’
rsscd#•«
Denmark.

Iceland............

1J

Loans

-.. ‘Jggy

2.3

—----13*8
2,5

18.8
5.2

Represents, together with $27,700,000 set aside for guarantees,
complete assignment to countries of loan funds’available from
the *dne billion dollar' public debt transaction*

Source* Hparipgs on Foreign Aid Appropriffijon B j11 for _1950.,
before Subcommittee of Committee on Appropriations,
House of Representatives, 81st Congress, 1st*Session, p.638

a

- 15 -

As shown by this table^practically the entire amount of the
5 billion dollar ECa appropriation and authorization had been
allotted by the end of the first year of operation. In general,
distribution of funds between recipient countries, and determina­
tion of the type of assistance, was based upon such factors as
the recovery needs of individual nations, prospective balance
of payments deficits with the Western Hemisphere, and relative
ability to service loans. The conditional aid indicated in
column (4) of the table was extended to those countries which
anticipated export surpluses in their trade with other partici­
pants. (Conditional aid is discussed more fully laber in this
report.)
Appropriation request for second year program of ERP
The Council concurred in the ECA appropriation request for
the April-June quarter of 1949, and for the fiscal year.
1949-1950. After review by the Congress, funds were authorized
in the following amounts (Public Law 47, Chapter 77-81st Congress,
1st sess.)s
(In millions of dollars)
Total ECA Funds Authorized,.,...........

$5,580

April-June 1949..••*»•••••?*.*•••••••#••
Fiscal year 1 9 4 9 - 5 0 . . . ..... ••••
Guaranties.•
•

1,150
4,280
150

The authorization for guaranties is made under Section 6(6)
of Public Law 47 »less any amount allocated prior to April 3,
1949, for such purpose, until all liabilities arising under
guaranties made pursuant to this authorization have expired or
been discharged.11 Prior to April 3, 1949, $27,700,000 had been
allocated to guaranties.
Pending the passage of legislation appropriating funds to
the ECA for the fiscal year 1950, the Reconstruction Finance
Corporation was authorized and directed to make advances not to
exceed in the aggregate one billion dollars to carry out the pro­
visions of the Economic Cooperation Act.
Financial aspects of European recovery
During November and December 1948, the Council took
occasion to review the financial problems raised by ERP during
the year and related these problems to the anticipated program
for the next fiscal period. In particular,, problems relating
to the future loan policy of ECA, the use of local currency
counterpart funds, ECA guaranties, exchange rates, gold and dol­
lar requirements^and blocked assets were considered.-

-

16

-

In its consideration of these problems, the Council recog­
nized the changes taking place in the internal financial situa­
tions of the recipient countries. Inflationary rises in prices
had been checked in several countries and the monetary authorities
of the various governments were in process of carrying out programs
of credit restriction# The governments had, to a considerable
extent, reduced the rate of inflationary borrowing from the
central banks or from other sources by bringing their budgets
closer to balance# Furthermore, the fact that there was a greater
availability of goods also had the effect of arresting price
increases# Difficulties in the future, however, might be faced
by those countries which were experiencing "suppressed” inflation —
i*e*, countries in which expendable income had increased more
than proportionately to the supply of goods but in which price
rises had been prevented or minimized by such devices as price
controlsj rationing, and subsidies# In some instances budgets
had been balanced, or budgetary surpluses achieved, but in other
cases where budgetary deficits were causing inflationary diffi­
culties more effort was needed, in the Council's opinion, to
increase domestic revenues and to eliminate unnecessary
expenditures#
Exchange, rates
The Council has given continual attention to the problem of
the exchange rates of the participating countries* It concluded
that in 1948 a general revaluation of the European exchange rates
was inadvisable in view of the possible internal repercussions
of devaluation on the participating countries in a period Ttfien
their economies still exhibited serious inflationary tendencies,
while their levels of production were not adequate to maintain an
expanded volume of international trade* In many of the participating
countries these conditions no longer obtain, since substantial pro­
gress has been made toward recovery in their levels of production.
The Council recognizes that if viability of the European economies
is to be attained by 1952, greater progress must be made by the
European countries in redressing their balance of payments position
with respect to the Western Hemisphere and jgri attracting private
foreign investment*. It is the Council's opinion that in some
cases the revaluation of currencies may constitute an important means
of bringing about the desired expansion of exports to the dollar
area which, along with other appropriate measures, will contribute
to more normal methods of financing'after 1952# While fully aware
of the difficulties involved in exchange rate adjustments, the
Council believes that the problem should be explored with some of
the European countries# Where adjustments of exchange rates are
indicated, it is expected that member countries will make appro­
priate proposals to the International Monetary Rind#

- 17-

Loan policy
Certain European countries have accumulated a substantial
indebtedness to the United States, including debts arising from
war account settlements, postwar credits, and loans extended by
ECA during its first year of operations; A further large mortgage
upon future dollar receipts would in ail probability be a deter­
rent to the objectives of the recovery program; The imposition
of further claims against European dollar earnings by the United
States Government would lead to a smaller margin of flexibility
i^i the international accounts of the debtor countries, thereby
necessitating disproportionate adjustments in vital imports as
earnings fluctuate* The probable effect would be to reduce to a
corresponding extent the capacity of participating countries to
service additional financing which they may require and to pay
earnings on direct investments* Therefore, any substantial
increases in dollar service charges resulting from the assumption
of increased obligations to the United States Government would
be scrutinized with particular concern by international lending
agencies and private investors*
The Council consequently recommended that the Administrator
for Economic Cooperation be authorized, in consultation with the
Council, to determine when aid for the fiscal year 1949-50 should
be on a loan basis and in what amount* Prudent use of this dis­
cretionary power would keep the field open for long-range invest­
ment prospects for private capital, for Export-Import Bank
financing, and for International Bank loans*
Foreign gold and dollar balances
Prior to the start of ERP, many nations throughout Western
Europe had drawn down their gold and dollar reserves in order to
purchase essential goods from the United States* When the
recovery program began, consideration was given to the problem
of whether further reduction in such reserves should be made a
requisite to receiving continued United States assistance* The
Council considered that such depletion of reserves should not
be required, but that ECA allocations should not be made for the
specific purpose of building up foreign exchange reserves¡>
Blocked assets
In conjunction with the initial presentation of the European
Recovery Program to the Congress, the Council outlined a program
to provide to recipient countries information which would enable
them to secure control over the blocked dollar assets of their
citizens (see Report of Council activities for the period
October 1947-March 1948)* Accordingly, a census was taken of all
assets which remained blocked in this country as of June 1948#
By the end of December appropriate information disclosed by the

- 18 -

census with respect to property worth approximately one-half
billion dollars was placed in the hands of the countries to
which the United States was extending assistance. In this way,
detailed information concerning a considerable portion of the
assets was made available to the appropropriate governments for
the first time. On October 1, 1948, jurisdiction over^assets
remaining blocked was transferred to the Office of Alien
Property in the Department of Justice from Foreign Funds Control
of the Treasury Department.
Local currency funds
The Economic Cooperation Act and the bilateral agreements
negotiated under the Economic Cooperation Act provide that
95 percent of the local currency counterpart funds resulting
from United States assistance furnished on a grant basis shall
be held or used in agreement with the United States Government.
The policies involved in the use of these funds have been formu­
lated by the ECA in consultation with the Council. In accordance
with the terms of the Act, local currency funds are available
for the reduction of public debt, expenditures for capital
reconstruction, and for other purposes conducive to attaining the
purposes of the Act. The status of counterpart funds under the
Foreign Assistance Act of 1948 as of April 2, 1949, is s own in
the following table:

- 19 -

TABLE VI - Status of European local currency counterpart accounts
under the foreign *ivssistance -a-ct of 19*+S, as of April 2, 19^9
(Dollar equivalents of the local currency, in millions of dollars)
------------ —1
Countries
receiving
grants

ALL ERP Countries,,

$1.733.2

$ 1 ,318 .1*

$828.1

France....... . •
United Kingdom..
Italy.... ......

5to.7
«èVt

288*7
U 35 .O

288.7
1*33.2

Austria*......*•
Bizone*........
Netherlands.....

1 ^ 3*8
103*2

163.9

Greece.
Norway........ ♦
French Zone....
Denmark........
Trieste.........
Belgium.........

!

12.5
.8

3»°

$ 86*6

.225.0

27.0
24.2

1 12.5
:
.8
1 ----

12l*.l

1

97.2

I

7.2
5*2
*+♦7

63.9

20.1
20*6

4*4

24.2

1.3

31.2
.6

1.6
.4
*2

22.2

25*5
12.9 1 /

$818*5

1

111*5 1 /
22*2 “

32*8

(.%)

27.0
155.7

k & s 1/

9^.7

^5*0

For use
hy U.S.

For use hy Recipient Country (95#)__
Balances
Approved for With­
on deposit
drawals
program use

Total
currency
deposited

1
!
f

-L
6.8

90.0

2.8

8*2 .

2.2

1

il— —-- -------

Includes nroaranis a^prov«..d in advance of deposits of counterpart funds#

2j

Less than $50*000*

Source:

Economic Cooperation Administration:

*

-

20

-

Jive percent of the counterpart funds deposited by the
European Recovery Program participants is allotted to the use of
the United States within the foreign country for the procurement
of strategic materials and the payment of local currency expenses of
the United States Government, particularly administrative expenses
in connection with the program# Ihese allotted funds are subse­
quently transferred from the deposits of the foreign country to
a séparaite United States account# The difference between the funds
transferred to the United States account and 5 percent of the grants
reported represents a claim of the United States Government on the
foreign government* The status of these funds as of April 2, 19^9*
is shown by country in table VIIî

Table VII - Status of the United States portion (5$) of counterpart
funds under the Foreign Assistance Act of 1948, by
country, as of April 2, 1949

.. u

-—*■

in thousands of dollars

--------

Ml

| Balance
Expenditures
Transferred
5# of
t
in U.Si
Admin, i
actual de­
to U*S.
accounts
posits by
and other Strategic accounts
expenses materials
for* pountry
9.392
6,639,
I 32.789
864659
16.758
TOTAL ..4............
Country

2/ 139
16;619
-.U

1,695
'321
5,569

France...........*< . 27,034
24^220
United Kingdom....
8,196
Italy* it••. *»♦ # #•. *«
•
t* ;;.•
Austria.... ** iJ i n
7 {190
5ÌÌ60
Biz one (Germany) i n
Netherlands* ii Iil*; i. 4,734

3,984
17',2112
8,196

S/2Ì150
272
2 {627

1,200
135
254

47Ì
93
93

—

729
42
161

.

4,419
2,251
1,638

1,000
130
172

685
69
110

—
—

315
61
62

French Z. (Germany] .
Trieste...........
Belgium.......... |

1,275
392
150

Norway...... .
Denmark.

52
392
62
____________ 1

——
12
57

1

52
380
5

1/ Dollar equivalents are computed at the actual rates which were used
by the respective governments in agreement with the Economic Cooperation
Administration in making commensurate deposits of local currency.
2/ Includes $1,566,000 for expenses of the Office of Special Representative.
3/ Represents advance for the development of mining facilties in French
Africa to be repaid by the delivery of lead and zinc.

Source:

Economic Cooperation Administration

Neither the Council nor BOA considered that a policy of uniform
treatment of the local currency accounts was advisable in view of
the great differences in progress made by individual countries,
differences in financial structure, and differences in economic
policy* therefore, the Council has acted on a country by country
basis in its review of the use of local currency counterpart funds
for the various participating countries.
The previous Report of the Council dealt with releases of
counterpart funds in France, the United Kingdom, Greece, and Trieste*
In general, these releases were made for purposes of financing invest­
ment and reequipment of public utilities; to stimulate economic
activities in industrial and agricultural enterprises and so contribute
to the economic recovery of Western Europe; for refugee, public
health and welfare programs; and to retire the public debt where the
country receiving such aid had progressed toward budgetary equilibrium*
During the period under review, the Council considered questions of
policy concerning the release of counterpart funds in Austria, Italy,
and Norway*
Austria
The Council advised the ECA that V- had no objection to the
release of 330.5 million schillings from the Austrian counterpart
funds to finance expenditures in the last half of 1948 designed to
stimulate productive activity through the rehabilitation of basic
Austrian utilities. The Council further advised that additional
releases be considered only after review of the Austrian financial
situation and receipt of evidence that adequate efforts had been made
by the Austrian Government to achieve financial stability,
A second request for the release of counterpart funds from
ECA and other sources, including GARIOA (Government and Relief
in Occupied Areas), was also reviewed by the Council, providing
for l,ty50 million schillings to retire government debt held by the
central bank, 50 million schillings for housing, and 7.58 million
schillings for other purposes* The additional program was recommended
after extensive review of the new industrial restoration program
undertaken by the Austrian Government,

Italy
The Council advised that it had no objection to the Italian
Government*s proceeding with plans for a broad development program
involviig the use of counterpart funds up to 250 billion lire, The
Council recommended that the Italian Government be advised that approval
by the United States of actual releases from counterpart funds would
be decided upon after review of the program and of the degree of
financial and monetary stability attained.
It was anticipated that
the use of the funds would be directed toward agricultural rehabilitation
public works construction, expansion of the merchant marine, and
improvements to the transportation system.

« 23 Norway
The Council advised ECA that the locàl currency counterpart
of EGA assistance during the first year o f the program night
appropriately he used by the Norwegian Government for the reduction
of debt to the Bank of Norway* Norway1a primary problem has been
one of suppressed inflation* Steps have been taken to offset
inflationary pressures through direct controls and gradually to
work off excess purchasing power through fiscal measures* In view
of this program, the use of counterpart funds for the purpose
indicàted above appeared wholly consistent with the ECA Act*
Conditional aid
EGA allots funds to certain countries ori the condition
that they grant to other participating countries equivalent
amounts in their own currencies (called drawing rights)* These
allotments are called conditional aid. During the first year
of EBB, conditional aid amounting to $531,300*000 was allotted
to correspond to drawing rights established by participating ,
countries within the intra^European payment s «plan* In general*
the United Kingdom and Belgium received^ the larger portion of
conditional aid while France received a*large portion of the
corresponding drawing rights.
In the operation of this program, the Council recommended
to EGA that no deposit to the special local currency account be
required from the country receiving the conditional aid, but
that the country receiving the drawing rights make a commensurate
deposit in a special local currency account to be administered
under section 115(b) (6) of the Foreign Assistance Act of 19^3,
five percent of which would be allotted to the United States for
its use under the terms of Title I of the Foreign Aid Appropriations
Act of 1 9 ^9 . Since a country utilizing drawing rights in effect
obtains assistance indirectly from the United States, it is
reasonable to require that deposits be made on the same conditions
as apply to local currency deposits made against direct grants.
ECA guaranty program
The Economic Cooperation Act of 19^6 provided a statutory
limit of $300,000,000 for guaranties of industrial and informational
media investments in connection with projects approved by the
Administrator. This limit was reduced by $150,000*000 under
Public law J+7-, Slst Congress, which amended the Economic Cooperation
Act-. During the first year of its operations, $27,700,000 was
allocated to the ECA guaranty program, and actual guaranties
authorized amounted to $3»5&7,81^*
By arrangement with the Administrator for Economic Cooperation,
the Eaport*-Import Bank acts as his agent for the issuance of
industrial guaranties, while the informational media guaranties
are issued by the Administrator.

- 24

ASSISTANCE EOE ASIA
China
Since the date of the last Council report, further deteriora­
tion in the economic and political situation of China necessitated
adjustment in the United States Governments program of assistance
to that country* During November 1948, therefore, ECA requested
the advice of the Council on the use of local currency counter­
part funds for emergency purposes consistent with the objectives
of the China Aid Act of 1948, and the Council saw no objection
to the extension of discretionary authority to the Chief of the
ECA China Mission to agree with the Chinese Government regarding
the use of these funds*
Japan
The Japanese postwar economy has been characterized by acute
inflationary conditions which made difficult effective economic conrtrol, and resulted in budgetary imbalance and a low level of
trade, both domestic and foreign. The United States authorities
recognized the need for more adequate internal stabilization in
Japan, and in July 1948, urged upon the Japanese Government a
program of more effective controls which was adopted only in
part.
Early in December 1948, an appropriation request for economic
rehabilitation, prepared by the Department of the Army, was sub­
mitted to the Council for consideration. The Council offered no
objection to the proposed appropriation, on the basis of assurances
from the State Department and the Department of the Army that
economic stabilization in Japan would be expedited*
On December 17, 1948, a directive was issued by SCAP to the
Japanese Government to carry out an effective economic stabilization
program calculated to achieve fiscal, monetary, price, and wage
stability in Japan as rapidly as possible, as well as to maximize
production for export. The specific objectives of the program were
listed asi
(1)

Balancing the budget at the earliest possible date
by stringent curtailing of expenditures and maximum
expansion in revenues.

(2)

Strengthening the program of tax collection*

(3)

Limiting credit extension to projects contributing
to economic recovery.

(4)

Stabilizing wages

~ 25 ~
(5)

Strengthening price controls.

(6)

Improving foreign trade and foreign exchange
controls*

(7)

Improving the allocation and rationing system*

(8)

Increasing production.

(9)

Improving efficiency of the food collection
program.

In conjunction with the announcement of the program, it was
stated that ” Improvements in the Japanese standard of living will
he contingent on the degree to which the Japanese give wholehearted
support to the achievement of economic stabilization and recovery.
Their performance in carrying out their program will he weighed
in connection with future requests for appropriated funds for
Japan.”
During 1948, a United States mission conducted a survey of
the exchange rate situation in Japan, and recommended that a single
rate for the yen he established as soon as practicable. The December
directive, referred to above, also indicated that the program would
be developed to pave the way for the early establishment of such a
rate. In March 1949, the Supreme Commander for the Allied Powers
requested authorization to establish a general commercial exchange
rate for the Japanese yen on April 1, 1949, or as soon thereafter
as practicable. The Council concurred in the proposal and recom­
mended that consideration be given to fixing a rate up to 360 yen
per dollar. 1/
Ryukyu Islands
The Council gave favorable consideration to the Department of
the Army’s appropriation request for the Ryukyu Islands for the
fiscal year 1950. This program is designed to assist in restoring
war damaged industry, to achieve more efficient utilization of
indigneous resources, and to improve existing facilities for power
and transportation, and thereby to reduce the amount of funds which
would otherwise be required for relief purposes from United States
appropriated funds.
l/ On April 22, 1949 the Supreme Commander for the Allied Powers in
Tokyo fixed the official exchange rate at 360 Japanese yen to the
dollar, effective April 25. The rate applied to all permissible
foreign trade and exchange transactions, including those for
which the military conversion rate had been applicable. Exchange
rates of the yen urith other currencies were based on the official
parities of those currencies with the dollar agreed with the
International Monetary Fund. The action did not change existing
restrictions on conversion of yen to foreign currencies or on
the holding of foreign currencies.

- 26 Kor'ea
The United States authorities in Korea have been confronted,
since the end of the war, with difficulties "by reason of currency
inflation, the excess of expenses over incomes, tax collection
problems$and disruption of normal economic relations "between
Horth Korea and South Korea. An EGA appropriation request for
the fiscal year 1950 was presented to the Council for consideration,
and the Council gave favorable consideration to this request in
view of the special responsibilities of the United States Govern­
ment in South Korea. This program will continue and extend programs
previously administered by the Department of the Army#
EXPORT-IMPORT BAUK CREDITS
During the period under review, the Council continued to work
closely with the Export— Import Bank to facilitate coordination of
the Bank1s operations with those of other agencies concerned with
foreign lending. Row credits authorized by the Bank during this
period totaled $148,390,560#
Wood processing industry in Finland
The Council approved consideration by the Export-Import Bank
of a loan to Finland in an amount not to exceed $10,000,000 for
the import of essential equipment and raw materials for the wood­
working industry, in order to promote a substantial increase in
the export of pulp, paper, and other essential wood products to
the Western Hemisphere and to ERP countries# The credit, uncon­
ditionally guaranteed by the Government of Finland, was established
in favor of the Bank of Finland, which undertook to control and
supervise the allocation of credits among Finnish firms to assure
that they would be used for the specific purpose of bringing about
further recovery in Finnish exports of wood products# This credit
is available until December 31, 1949, bears interest at 3-1/2 percent
per annum, and is to be repaid in six years after January 1, 1953#
Power development in Brazil
The Council approved consideration by the Export— Import Bank
of a loan of $8,278,000 to twelve of the operating subsidiaries of
the American and Foreign Power Company under guaranty of the Brazilian
Electric Power Company, its Brazilian holding company, to finance the
expansion of power production and related distribution facilities in
Brazil. The obligation is evidenced by notes bearing interest at
4-l/2 percent per annum and maturing in twenty semiannual install­
ments beginning in March 1950. The companies had invested $25,000,000
in the construction of new facilities during the period 1945-1947 and
the current loan was designed to cover a portion of the external costs
of that part of an additional program of expansion which would be
completed in 1949# The Brazilian borrowing companies had demonstrated
high earning capacity as a group, and had secured from tne Brazilian
exchange control authority a registration for priority of the exchange
required for the service of the credit#

- 27 Another expansion program in Brazil, that of the Brazilian
Traction Light and Power Company for a credit of $75,000,000 to
expand power production and telephone facilities, is discussed
in the section of this report dealing with the International
Bank«
Agricultural development in Haiti
The Council approved consideration "by the Export— Import Bank
of a credit not to exceed $4,000,000 to the Republic of Haiti for
financing the development of the Artibonite Talley« Terns of the
credit provide for repayment in thirty approximately equal semi­
annual installmentcommencing three years after the date of the
first advance of funds for the project»
The funds obtained from this loan will be used to assist in
financing the construction of flood control, irrigation and drainage
works, as well as settlement and agricultural development of the
approximately 62*500 acres of lands to be irrigated» The credits
wiil be used to finance the purchase of United States equipment,
materials and services required for construction in an amount not
in excess of $3*200,000, and to finance the purchase of up to
$800,000 of other United States equipment required in the settle­
ment and development of the irrigated area.
Steel expansion in Chile
The Council approved consideration by the Export-Import Bank
of a credit of $20,000,000, with a maturity of twenty years, to
Corporación de Tomento de la Producción of Chile, to supplement
the existing credit of the Bank for financing construction of ah
integrated steel mill at Concepcion, Chile. The initial credit,^,
of $28,000,000, was established by the Bank in September, 1945,
A ripe in prices and necessary modifications in plans since
the project was first submitted resulted in a substantial upward
revision in estimated total cost, from $56,000,000 to about
$83,000,000. Of this total $48,000,000 will be covered by Export-Import
Bank
financing, $4,000,000 by credits obtained from United States
suppliers, and the balance of $31,000,000 will be supplied by Chile,
Economic development of Israel
The Council approved consideration by the Export-Import Bank of
credits of $100,000,000 to the State of Israel to finance projects
contributing to the balanced economic development of the country.
In January, 1949, the Export-Import Bank announced the authorization
of a credit of $35,000,000 to assist in the financing of agricultural
projects, and the earmarking of $65,000,000,to be available until
December 31, 1949, for credits to finance ¿projects in the fields
of transportation and communication, manufacturing, housing, and
public works. These various projects are part of the overall

28 program of the State of Israel designed, to establish a selfsustaining economy*- The State of Israel expects to finance
this total investment program in large part from local savings,
Jewish contributions from various parts of the world* and
private foreign capital investment*
During March 1949, the Export-Import Bank announced alloca­
tions from the $65,000,000 of $16,000,000 for buses and trucks,
materials and equipment for developing low cost housing,.and
telecommunications equipment*
The Israeli credits carry a rate of interest of 3-1/2 percent
per annum and are to be amortized over a period of 15 years*
Highway construction in Bolivia
The Council approved consideration by the Export-Import Bank
of a credit to Bolivia not to exceed $16,000,000 with a maturity
of about 20 years and an interest rate of not more than 4 percent
per annum to assist in financing the completion of the Cochabamba^-*
Santa Cruz highway* The proposed credit would be supplementary to
an earlier credit of $10,000,000 extended in March 1942^
Other credits
In addition to the credits specified above, the Export— Import
Bank, during the period under review, extended other credits in
small amounts,including credits for certain projects in the Latin
American Republics and for the development of iron ore deposits
in Canada*
The Export-Import Bank also acts as the loan administering
agency for loan agreements negotiated on behalf of ÊCA under the
Eoreign Assistance Act of 1948. Loans to participants in the
European Recovery Program have been considered earlier in this
Report*

As of March 31, 1949, the resources of the Export-Import Bank
were distributed as follows:
(in millions of dollars)
TOTAL LEHDIUQ- AUTHORITY*
Loans outstandihg.... 2 , 144*7
Undisbursed Commitments.
........
Uncommitted . lending authority...*.*.*

$3,500*0

425*9
929*4

The following table shows the distribution of net credits
authorized by country and object of financing. Actual utiliza­
tion of Export-Import Bank credits by country, through December
31, 1948 * nay be found in appendix C.

TABLE VIII - Net credits authorized by the Export-Import Bank,
July 1, 1945 to March 31, 1949
—

UJ

vin mi

-------------— ----- J-

Reconstruction

TOTAL
Area and Country

Development
_

Lend
Other
Cotton
Lease
requiPU
r 7/ „
ess./
sitions ,chas

3,597.3

1,008.6

754.6

655,0

159.0

20.1

TOTAL, EUROPE.e•.»••* 3.005.5

971.9

261.0

655.0

100.0

17.6

Franc e ,♦.»••»••* • *• 1,200.0
205.3
Netherlands.»»»•«••
132.0
Belgium.•.. .......

bDU.U

--- — •

550.0
50.0
55.0

TOTAL, ALL AREAS....

Finland,»»».«.• ••••

152.2&// 3.1 ,
-^
/nR/
4 D .U
/

40,0
35.6
22.0

40.0

Denmar k. «»•».*..•••
Germany*»♦•••**••**
Greece

20.0
19.0
14.7

20.0

Austnsit»§•♦♦•**•♦•
Sweden..►♦*#*•••••*
Unallotted Cotton
Credits.

13,5
2.2

**-*"*+'

TOTAL, LATIN AMERICA.
11 1 ■"

231,5

Brazil
Mexico,. . . . .♦».*.
Chile.

73,6
57.0
63.7

~*“*,~*~*

Colombia.....* ©. ***
Hait i.•
••©•**•
Ecuador.

2.0*1
4.0
8

.

Bolivia*
V ene zuel a. ••••©®© •*
►.
Panamá.
Argent ina.♦•••**.• §
Uruguay*,...*••••• 9
Other L. A.**..... .

_____

50.0

Poland, .«• . o.• ••* o
Turkey.»•. ** ...
Czechoslovakia. •♦•♦

25.0
17.0

— ---

101 ..9
73 2

131,8
100.2
50.2

____

35 6

20.0

19.0
14.7

-

4 .U
A

C\

3.8
•.....

3 *2
3 %0
Of v

3.0
2.0

•
*■?
i

-•*",l
t

19.0

..,__ —_
,

— ---------__
r..<____ ___________

73.6
57.0
63.7
20 1

.2
.1
.7

l

ljnn-rtn

,
231.5

2.0i/

*5

13.0
2.2

19.0
u"WJ*lin^

4.9i/
lO.Oü/
.2

____
,,---____
____

____

!\ ,--

- 30 TABLE VIII — Net credits authorized by the Export-Import Bank, ¿/
July 1, 1945 to March 31 f 1949 (continued)
(in millions of dollars)
Area and Country

TOTAL

Recon­
struc­
tion

Devel­
opment

213,8

36,7

117.1

a• • #***# +••«? 100.0
» • » #•
66,7
Jâp an •
'0 %
■
• » 0 0 » 26.0

33.7
—

TOTAL, ASIA AND
AFRICA**

100,0

Israele

b é é

p 0.■

Saudi Arabia*
Egypt #« , » e o * * . . # , . .
Ethiopia*

10.0
7.1
3. 0

*****

*—
3. 0

CxvNa Da * * * * » » * « • . » . « * , 145*0
OTHER* *••*» c * •*»*•••«

Lend
Lease
re qui-»
sitions

—
10.0
7. 1
—»

Cott on
pur
chases2/

Other

_

59.0

r-rrrr
—

3 3.0 . \ 26,0â / i/ / —
/

.

a,

—
—

——

**
—

—

—

2 .5

145.0

2. 5
, - r r r a r j L-

]J

Cancellations end expirations deducted. Numerous small exporter*
importer loans extended hy the Bank, July 1, 1945> through March 31,
1949, excluded. Also excluded are Mexican authorizations of
$30,000,000 and a Peruvian authorization of $400*000 approved prior
to June 30, 1945, hut recorded on the Bankas hooks subsequent to
June 30, 1945,

2j

Credits extended hy Export-Import Bank under generai approval of the
Council, Hungarian credit of $7,000,000 cancelled April 3, 1947-,

3/

Excludes participation hy private hanks-,

4/

For financing tobacco purchases.

5/

For financing food purchases,

6,/

Revolving credits„

Source:

Export-Import Bank.

« 31
WAR ASSETS ADM INI STRATI OK CREDIT AGREEMENTS
As indicated in the previous Report of the Council, War
Assets Administration credit agreements with foreign govern­
ments were originally inaugurated at a time when the agency
held in its inventory large amounts of property which it
appeared could not then he absorbed by the national economy#
Thereafter, When certain of the credit agreements were scheduled
to expire, the Administrator of WAA requested the advice of the
Council as to the desirability of extending them and the Council
approved consideration of their extension until December 31, 1948#
In December 1948, War Assets Administration brought to the
attention of the Council the fact that certain credit agreements
would expire before February 28, 1949, the scheduled date for the
liquidation of WAA, and requested the advice of the Council as to
the desirability of renewing until this date these credit agree­
ments upon application# Since there was no material change in
factors considered at the time of the earlier requests, the Council
approved consideration by WAA of the renewal to February 28, 1949t/
of credit agreements with the Governments of Finland, the Philippines,
the Netherlands, Haiti, Norway, Austria, and France upon receipt of
applications from those governments#
TABLE IX ~~~ War Assets Administration credit agreements with
foreign governments, as of February 28, 1949

Country

TOTAL
CREDIT
AGREEMENTS

!■ .. ..—1 ——Ci. J ^«■
Unused
Credit
balances
approvals,
Feb. 28, 1949 Feb. 28, 1949

$117,255,000

$19,849,383

$97,405,616

France#
Netherlands•• •#•
Norway ###<>•.*'• »♦
Austria# #•#••••#

50,000,000
15,000,000
12,000,000
10,000,000

6,972,390
969,997
631,443
3,346,778

43,027,609
14,030;003
11,368,557
6,653,222

Finland##•#»••••
Philippines.... •
Pakistan#•#••••«
Haiti.«...##•#*#

10,000,000
10,000,000
10,000,000
255,000

6,565,756
1,074,633 \
136,464 1/j
151,922 f
i
J ............ -.*

TOTAL #*##«#####6o**

Notei

l/
Source:

3,434,244
8,925,367
9,863,536
103,078

The purchasing period under the Pakistan agreement
expired on April 14, 1949# No further purchases have
been made under the agreement# The purchasing period
under the other agreements expired on February 28, 1949#
Paid in full with interest on November 10, 1948.
War Assets Administration#

- 32 **
PRESIDENT1S PROGRAM FÛR UNDERDËYELOPED AREAS
In hi s inàügfttfal address "before the Congress on January 20, 1949,
the President stâted Çhat ”We must embark on a bold new program for
making the benefits of our scientific advances and industrial pro­
gress available for the improvement and growth of underdeveloped
areas.** The Point IY program, outlined by the President, called
for United States Government participation in the form of technical
assistance, development loans by United States Government and
international lending agencies, and the fostering of United States
private investment abroad*
The Point IY program is broadly economic in nature* It recognizes
that the greatest contribution to the economic development of under­
developed areas will have to come from within such territories. By
sharing their knowledge and skills, the nations engaged in this joint
effort would promote and encourage foreign investments and inter­
national trade.
The financial problems relative to the Point IY program have been
■under consideration by the Council*
In particular, the relationship
between the capital investment aspects of this program and methods
of developing technical cooperation between nations have been studied*
Proposals designed to encourage the flow of private investment cap­
ital abroad; particularly relating to (l) the negotiation of treaty
provisions covering protection of United States foreign investment,
(2) government guaranties to investors against certain risks, and
(3) tax incentives, have received attention during this initial
stage of exploration into the possibilities of implementing the
program* The Presidentas 'Committee for Financing Foreign Trade, under
the chairmanship.i of Mr. Winthrop W. Aldrich, has consulted with
the Council on those aspects of the program in which there is mutual
interest.
FINANCIAL ASPECTS OF MILITARY ASSISTANCE
In March 1949, the Council reviewed, with particular reference
to the possible impact on the European Recovery Program, certain
of the financial aspects of the military assistance program which
was under consideration by the Executive Branch of the United States
Government.
JOINT BRAZIL - UNITED STATES TECHNICAL COMMISSION
As indicated in the previous Report of the Council, the Joint
Brazil-United States Technical Commission was created under the
authority of President Truman and President Dutra pursuant to the
request of Brazil that technicians of the United States Government
collaborate with technicians of the Brazilian Government in an
analysis of the factors in Brazil which tended to promote or to
retard the economic development of the country. The Commission,
engaged in this task s¡fence September 1948, completed and submitted
its report to the two'Governments in February 1949* The report
was subsequently made public. Terms of reference to guide the
Commission in its study were cited in the preceding Report of the
Council*

- 33 ~
IV.

ACTIVITIES OF THIS COUNCIL FROM OCTOBER 1. 1948 to MARCH 31. I94gj.
RELATING TO THE INTERNATIONAL' MONETARY FUND AMD THE INTERNATIONAL
BANK FOR RECONSTRUCTION AND DEVELOPMENT

The National Advisory Council, in accordance with statutory
authority, continued to coordinate the activities of the United States
representatives of the Fund and the Bank with those of other agencies
of the Government, by consulting and advising with them on major
problems arising in administration of the Fund and the Bank. The
United States Executive Directors of these institutions, or their
Alternates, have attended the Council’s meetings regularly, and have
participated continuously in the work of its Staff Committee.
MEMBERSHIP CHANGES IN THE FUND AND THE BANK

.

During the period under review, no new countries were admitted
to membership in the Fund or the Bank. In October 1948, the Governors
of both institutions considered the membership application of Liberia,
and, without meeting, voted to accept the Liberian application, providing for a quota in the Fund of $500,000 and a like amount as a sub­
scription to the Bank. As of March 31, 1949, Liberia had not yet
accepted membership in either the Fund or the Bank*
On March 31, 1949, forty-seven countries were members of the
Fund and the Bank. The members, with their quotas and capital sub­
scriptions as of March 31, 1949, are listed in appendix D.
ORGANIZATIONAL CHANGES
On October 30, 1948, the Fund announced the appointment of Mr.
Andrew N. Overby to the position of Deputy Managing Director of the
Fund. Mr. Overby subsequently resigned as United States Executive
Director, and assumed his new duties on February 9, 1949. On February
8 1949 the President of the United States, with the advice and con­
sent of*the United States Senate, appointed Mr. Frank A. Southard, Jr.
as United States Executive Director of the Fund. Mr. Southard took
office on March 1, 1949.
THE FUND
During the period under review, the Fund not only provided
assistance to its members in appropriate instances to meet balance of
payments deficits on current account, but also utilized extensively
the technical skills of its personnel in the solution of complex ex­
change problems. Thus, further progress was made in establishing the
Fund as the international organization for technical consultation
and advice on foreign exchange problems.
Par values
On December 17, 1948, the Fund announced a change in the par
value of the Colombian peso from approximately 1.75 pesos to the

- 34 ~
United States dollar, to approximately 1,95 pesos to the United
States dollar. On March 22, 1949, the Fund also announced that
it had concurred in a proposal by the Government of France to
change the par value of the currency of French Somaliland from
126 Djibouti francs per United States dollar, to 214.392 Djibouti
francs per United States dollar,%J The United States Executive
Directory acting with the approval of the Council, supported
these decisions.
Exchange restrictions
France
On October 16, 1948, the Fund reported the results of consulta­
tions with the French Government relating to changes in the French
exchange system in order to reduce the multiplicity of exchange rates
and to unify the procedure applicable to commercial transactions.
Under the agreed proposals, exchange rates for trade transactions
are based on the effective rate for the dollar, with cross rates
for currencies of other members conforming closely to the accepted
Fund parities. Differential rates continue only for non— trade
transactions in dollars, Swiss francs, and escudos.
Colombia
The change in par value of the Colombian peso in December 1948
was accompanied by certain modifications in the country*s existing
multiple currency system. These measures were concurred in by the
Fund, which stated that they were an improvement upon the system
which Colombia introduced in June 1948, and should have the effect ”
of curbing imports, thereby tending to lessen the drain on Colombia1s
foreign exchange resources. The measures were designed to assist in
the solution of Colombia’s balance of payments problem and to remove
some of the features of the existing system considered to be in con­
flict with Fund policies. The new measures provided, among other
things, for the abolition of exchange premia for certain major ex­
ports, for reducing the exchange surcharges on two of the three
categories of private imports, for the provision of exchange for
official imports at the parity rate, and for the maintenance of
exchange licensing and certain quantitative import controls.
Colombia and the Fund have continued consultations with a view to
the adoption of measures in the financial and monetary field
designed to lead toward further unification, simplification, and
strengthening of the Colombian exchange system.

1/

The par value initially agreed with the Fund of 70 Djibouti francs
per United States dollar had been changed to 126 francs to the
dollar when the Government of France instituted its new exchange
system on January 25, 1948.

- 35c ~
Peru
On December 10, 1948, the Fund approved further changes in
Peru’s exchange system which were intended to encourage exports and
reduce import demand so as to achieve a "better "balance in Peru s
international payments. At the same time, the Fund urged Peru to
study policies looking toward greater unification of its exchange
system*
Union of South Africa
In order to meet a serious drain on its convertible exchange
reserves, the Union of South Africa, in November 1948, put into
force restrictions on exchange for imports from countries outside
the sterling area« In January 1949, after considering the substance
of the measures and the circumstances of the member, the Fund agreed
to approve the imposition of the restrictions and authorized their
maintenance and adaptation to changing circumstances as long as the
Fund remains satisfied that they are necessary to safeguard South
Africa’s external financial position* In its action the und gave
particular attention to certain discriminatory aspects involved in
the South African measures, and is keeping the questions under constant
review. In respect to the South African import restrictions imposed
in November 1948, the Fund has been in consultation with the Contracting
Parties under the General Agreement on Tariffs and Trade (GATT),
Gold sales at premium prices
In February 1949, the Government of South Africa announced that
it had contracted to sell abroad 100,000 ounces of semi~processed
gold for industrial purposes at a price in excess of $35 an ounce«
The Fund’s policy on such transactions has been that external sales
are allowable only if adequate safeguards exist to ensure that the
gold is, in fact, used for bona fide and customary artistic, industrial
or professional purposes, and not for speculation and hoarding, and
that it is imported in accordance with the gold or exchange laws of
the countries concerned* The Fund emphasized that there had been no
change in this established policy.
The Fund noted that it had advised South Africa in October 1948,
of the desirability of instituting safeguards on external gold sales,
similar to those employed by the United States and the United Kingdom,
The United States regulations, for example, require that the exporter
furnish complete information on the bona fide disposition of the
gold, and further, that the proposed importation and payment are in
conformity with the laws of the importing country.
During the remainder of the period under review, discussions
continued between Fund and South African officials in an attempt to
work out a mutually satisfactory solution to this problem,

- 36 During the past year, the Fund also consulted with the United
Kingdom, which has accepted the pund Agreement in respect of Southern
Rhodesia, regarding a gold subsidy arrangement which had been
established by the territorial government. It was agreed that the
arrangement was inconsistent with the Fund's policy, and the Fund
was informed in October 1948, that Southern Rhodesia would undertake
to modify its legislation to conform with the Fund's principles.
During the period under review, various other members consulted
with the Fund regarding steps which might be taken internally to
alleviate the difficulties faced by gold producers, without infringing
upon the basic policy respecting international transactions in gold
at premium prices,
Fund exchange transactions
During the 6 months, October 1, 1948 through March 31, 1949,
the Fund sold $73,700,000 to five of its member countries. Of the
aggregate amount, $6,100,000 represented a sale to Norway of
United States dollars for gold. This was the first time a member
country had used the Fund's facilities for the purpose of exchanging
gold for another member's currency.
The following table presents a detailed break-down, of all Fund
currency sales through March 31, 1949:

37 -

Table X - Currency Sales of the International Monetary Fund
from March 31, 1947 through March 31, 1949

Country

- .
vin mil lions oi uni 30. oiai/BS u u u a i O L
■«■■■.. —•‘
SIX
MONTH
PERIOD
endingTÖTAL TO j
MAR* 31» Mar. 31*1 Sept. 30 Mar* 31 Sept; 30
1947
1948
1949
| 1948
1949

COUNTRIES...*

713*6

TOTa L 5 EUROPE*»»*••»%♦•»
United Kingdom...*••»
France*........... .
Netherlands..*.......
Belgium* » . a . . . •••*•*»

570.3
300.0
125.0
75.3
33*0

TOTAL,

a LL

15*7

------“ i
73.7
! 39.8___
6 .1

23,3

—

6 .83=./
j, j

!
|
j

rnmnyw-

6 .1 &

7.1i/
3.4

391*1

309.0

356.8
240.0
25.0
44.5
33.0

184.0
60. Ö

TOTAL, OTHER COUNTRIES*.

143*4

|

67.6

16*5

34.3

100*1

r
i

55.9

16*2

28*0

;e*

6 .0

5.0

5*0

25.0

22.5

22.5

Ethiopia*««* **..... .
Costa B-ica# ♦♦*
&o♦
Nic ar agua*

,
24. Oâ/

6 .8

10*2
6*0

India* ..*•«»*«•••*•?*
Mexic o* ..«•«*••»<>••••
U* of South Africa* ..
Chile*♦♦•••4 ••••

1 0 0 .0

2.5

Denmark,» ** *«>••«• # *•$*
Czechoslovakia... *•* *
Turkey

*-

10*0

10*0
8 .8

6*3

2.5

0.3

0*3
1*2

[

1*2

0.5

i

0.5

JiXCepTi w n e re u w ieiw xssc

»■ «—— -■---- -^
~ ~ -------

dollars in exchange for the currency of the purchasing country,
1J
&l
3/
4/

Sale of Belgian francs.
Includes $6,000,000 of pounds sterling.
United States dollars sold for an equivalent in gold«
Includes $4,600,000 of Belgian francs.

Source:

—'

International Monetary Fund

—• 38 *-•

THE B A M
In furtherance of its primary function of facilitating
the flow of international investment funds, the Inter­
national Bank has done much, during the period under review,
to assist members to draw up practical long-range programs
adapted to their needs* as well as to suggest measures
for improving their credit standing and financial
stability«
Loans and disbursements
On January 6 » 19*+9, the Bank granted two loans
totalling $3 ^,1 0 0 , 0 0 0 for electric power development in
Mexicoo The joint borrowers in each case were the
Comiflion federal de Slectricidad (federal Electricity
Commission) and Hacional financiera, and both
loans were guaranteed by the Mexican Government. The
larger loan of $ 2 ^,1 0 0 ,0 0 0 , to be used directly by the
federal Electricity Commission, is for a term of 25
years at an interest rate of 3 j percent, plus a 1 per­
cent annual commission charge to be set aside in the
Bank*s special reserve fund in accordance with its
articles of agreement# Amortization payments,
calculated to retire the loan by maturity, will begin in
the fifth year« The smaller loan, $10,000,000, was to
be re-lent to the Mexican Light and Power Company, Limitad.
Due to an impending reorganization of the Light and Power
Company, this loan is expected to cover expenditures for
company expansion plans only to December y i 9 19^9> an^is due for repayment on that date» As in the case of the
larger loan, it carries an interest rate of 3 i percent,
plus the usual'1 percent commission charge® The Bank
stated that, should the reorganization be satisfactorily
completed in 1 9 ^ 9 , and other conditions warrant, it would
consider negotiating a long-term loan to finance the
remainder of the foreign exchange costs of the program
and refunding the short-term credits
On January 27, 19^9, the Bank announced a loan
of $75,000,000 to the Brazilian Traction, Light and
Power Company, Limited, a Canadian corporation, to
assist in financing the expansion of hydroelectric
power and telephone facilities in Brazil» The total
cost of the expansion program is estimated at about the
equivalent of $ 1 9 5 ,0 0 0 , 0 0 0 over the next four or five

- 39

years, of which it is anticipated that approximately
$120,000,0009 principally local currency costs, will be
financed from the company*s own resources« The loan,
guaranteed by the United States of Brazil, is for a
term of 2 5 years, and carries an interest rate of 3^
percent, plus a commission of 1 percent«, Amortization
of principal will begin on July 1, 1953» an(I Is calculated
to retire the loan by maturity« In connection with
this loan, the Canadian Government gave its consent to
the use of an amount not exceeding eight million Canadian
dollars out of Canada*s subscription to the Bank* 8
capital, and the Government of the United Kingdom gave
its consent to the use of an amount not exceeding
3, 500,000 out of the United Kingdom*8 subscription*
The Bank expects to disburse these sums for purchases
made by the Company in Canada and the United Kingdom,
Respectively?» The Brazilian Traction loan became effective
on May 9» 1 9 % 9 subsequent to ratification by the Brazilian
Government*
On February 2S, I9 H9 , the Bank granted a loan of
$16,000,000 to the Kingdom of Belgium for the purchase
of steel and electric power equipment« This loan will
be used to finance the foreign exchange costs for the
construction of steel mill facilities and the erection
of a power plant in the Liege industrial district® The
loan is for a term of 20 years, and carries an interest
rate of 3^ percent, plus 1 percent commission* Amor­
tization payments, calculated to retire the loan by
maturity, start in the fifth year* The Bank, pointed
out that the extension of this loan was in conformity
with its policy of supplementing the European Recovery
Program by financing permanent additions to European
productive capacity reflected in projects affording
reasonable prospects of repayment*
Prom May 9, 19^7* when the Bank made its first
loan, through March 31, 19^9.
commitments of the
International Bank aggregated slightly over $650,000,000,
As shown in the following tabulation, more than twothirds of this amount had been disbursed by March 3 1 ,

19^9S

r 40 ~
TABLE XÌ - Status of International Bank loans as of Mar, 31* 19^9

Loan Commit-*
Disbursement
Éuii
.ifatM, \
«.¿U.,«.

Unused Balance
of Commitment

$6 5 0 *1 0 0 , 0 0 0

$508,3^2,928

$ 1 ^1 .7 5 7 . 0 7 2

Credit National (France)**,,,*,,*,,
Kingdom of the Netherlands,..... .
Brazilian Traction, Light &
Power Co* l^**»*»<ko* * » * * * * , » , , , * « 9

2 5 0 ,0 0 0 , 0 0 0
1 9 5 *0 0 0 , 0 0 0

2 5 0 ,0 0 0 , 0 0 0
1 9 5 ,0 0 0 , 0 0 0

Kingdom of Denmark»*,,,***********»
Financiera and Comisión (Mexico)^/»
Kingdom of Belgium***********»•»«*&

Uo,0 0 0 , 0 0 0
3 ^,1 0 0 , 0 0 0
1 6 ,0 0 0 , 0 0 0

Corporación de Fomento (Republic
of Chile) 3/♦♦•••*••»
•• ■
Grand Duchy of Luxembourg*.**.*,**«
Netherlands shipping companies J+/**

1 6 .0 0 0 .0 0 0
1 2 t0 0 0 , 0 0 0
1 2 .0 0 0 .

Borrower

TOTAL. ALL LOANS..................

7 5 *0 0 0 , 0 0 0

7 5 *0 0 0 , 0 0 0

Uo, 0 0 0 , 0 0 0
1 ,8 3 2 , 8 1 8

9 ,5 1 0 , 1 1 0
0 0 0 1 2 ,0 0 0 , 0 0 0

3 2 ,2 6 7 , 1 8 2
1 6 ,0 0 0 , 0 0 0

1 6 ,0 0 0 , 0 0 0
2 ,US9 , 8 9 0

1/

Loan guaranteed by the United States of Brazil, and effective May 9, 19^9*
after ratification by the Brazilian Government*

2/

Loans guaranteed hy the Government of Mexico* Nacional Financiera and
Comisión Federal de Electricidad are joint borrowers*

3/

Effective April 7, I9 U9 , after ratification by the Chilean Government*

bf

Loan guaranteed by the Kingdom of the Netherlands*
Source:

International Bank for Reconstruction and Development*

Sales of guaranteed obligations
In January 19^9, the Bank announced the private sale with its
guaranty of $2,200,000 in 2 l/2 percent serial mortgage notes which had
been held in its portfolio since August 1 9 ^ 8 , when a $12,000,000 loan
was made to four Netherlands shipping companies* Of the latter amount,
$8,100,000 of guaranteed notes had been purchased from the Bank immediately
by a group of ten United States commercial and savings banks* A similar
transaction occurred on March 28, 19^9* when the Bank guaranteed and sold
to private investors the $16,000,000 of 3 percent bonds of the Kingdom of
Belgium, which it had received in connection with the loan to Belgium*.
In accordance with the articles of agreement, all of these guaranteed
obligations were sold in the United States only after obtaining the
consent of the United States Government*
In view of the fact that the $12,000,000 loan to the Netherlands
shipping companies was made out of the 18 percent United States capital
subscription, a further United States consent was required. In response

- 41 to a request from the Bank, the United States Government informed
the Bank that it would interpose no objection to the use hy the Bank
in making loans with all or any part of the proceeds of the guaranteed
securities arising from this transaction* The United States, however,
expressed its desire to be consulted in the future before the Bank
relends any of the funds originally derived from the 18 percent
subscription of the United States and recovered by the Bank through
the sale of other securities*
Repayment s
On January 15, I9 H9 , four Netherlands shipping companies made a
payment of $ 6 0 0 , 0 0 0 to the banks holding the 2 1 / 2 percent guaranteed
serial mortgage notes which had been received by the International
Bank in connection with the loans made to these companies, and which
were subsequently sold with the Bankas guaranty* This represents the
first repayment of principal by a borrower under one of the Bank s
loan cpntracts*
Legislation
As previously reported, the Council agreed to support, by
appropriate steps, amendment of the Securities Act of 1933 and the
Securities Exchange Act of 193^, so as to exempt securities issued or
guaranteed by the International Bank from those acts, and to support
the amendment of the National Bank Act so as to permit dealing in these
securities by member banks of the Federal Reserve System (subject to
existing limitations on the total amount of securities of any one
obligor that a member bank may hold at any one time)* Bills to
accomplish this purpose were introduced in the Eight y*-*first Congress#
Fiscal operations
For the nine months period ending March 31, 19^9* the Bank reported
a net income of approximately $7 ,^0 0 , 0 0 0 plus $3 *7 0 0 , 0 0 0 placed into
the special reserve. During the comparable period ending March 31, 19*+8,
the Bankas net income was $2,200,000 exclusive of $2,000,000 set aside
in the special reserve. As of March 31, 19^9* the Bank had an earned
surplus of over $1 0 ,>400,000, and nearly $6,800,000 in its special
reserve.

Future lending
As of March 3 1 , 1 9 U9 , the Bank had uncommitted loanable dollar
funds amounting to approximately $3 8 5 »0 0 0 ,0 0 0 , and had on hand
numerous loan requests at various stages of investigation and
completion* As evidenced by its activities during the period under
review, the Bank now has progressed well into the developmental phase
of its lending program« Additional use also has been made of the
Bank!s guaranty power, which serves the same purpose as would an
increase in available loan funds® The Bank may be expected, in the
future, to assume an increasingly greater share of the financial
burddn. of worid-wide developmental and modernization programs*

(Signed) John W, Snyder_________
Secretary of the Treasury,
Chairman of the National Advisory
Council on International Monetary
and Financial Problems«

(Signed) Dean Acheson
Secretary of State

(Signed) Thomas B® McCabe
Chairman of the Board of
Governors of the Federal
Reserve System

(Signed) Charles Sawyer
Secretary of Commerce

(Signed) Herbert E, Gaston
Chairman of the Board of
Directors of the Eaport*
Import Bank of Washington

(Signed) Paul G* H o f f m a n ______
Administrator for Economic Cooperation

APPENDIXES
Report of Activities of the National Advisory Council

on International Monetary and Financial Problems
October 1> 1948-March 31> 1949

1

APPENDIXES
Page
A*

B.

G.

D.

Sections of the Bretton Woods Agreements Act and of
the Foreign Assistance Act’of 194# relating to the'
National Advisory Council*,*....,.•,••••..,•.• ••••••,•

A-l

Estimated gold and short-term dollar resources of
foreign countries as of December 31, 194*8, and gold
transactions between the United States and other
countries) January 1, 194*5 through December 31, 194*8«.

A-5

Statistical tables on United States Government
postwar foreign loans and other credits, and grants*.*

Aril

Membership and quotas in the International Monetary
Fund, and membership and subscriptions in the Inter­
national Bank for Reconstruction and Development,
March 31, 194*9...................... .

A-59

APPENDIX TABLES

Table

~TT
2.

Estimated gold and short-term dollar resources of
foreign countries as of December .31, 194*8.,,«.,,.*.*

A-5

Gold transactions between the United States and
other countries, January 1, 194*5 through
December 31, 194*8*«.,•««,,,

A-9

APPENDIX C
Explanatory note •»«••,••,.................

A-ll

UNITED STATES GOVERNMENT FOREIGN ASSISTANCE—
BY AREA AND COUNTRY:
Amounts Utilized July 1. 19A5 to December 31. 194.8.
and Unutilized as of December 31. 19A8:

H CM

*
*

3*

Summary of:
Credits and Grants
Credits.,..,*...*.
Data bv type :
G r a n t s ; .......

A-23
A-26

A-31

li

APPENDIX TABLES— Con.

Page

4*
' 5*

Credits— By Administering Agency:
As of December 31» 1948:
Outstanding indebtedness*......................
Unutilized balances«*«****»#* .....•••••*••«••*•••»«

A-35
A -4-0

6*
7«

July 1* 1945 to December ^1. 1948?
Authorizations«**...•••.*•.«»....••••»«•..*.«•».«•»
Expirations and cancellations.«••••#•*»«*•»•••«•»••

A-43
A-48

8.
9.

Utilizations through December 31« 1948 from?
July 1, 1945#•.#••••........ .........♦ A-50
July 1, 1948**............ ........................

A-55

10*

Repayments, July 1, 1945 to December 31* 1948« .••••«**

A-57

APPENDIX D
1*

Membership and quotas in the International Monetary
Fund, and membership and subscriptions in the Inter­
national Bank for Reconstruction and Development,
March 31, 1949.*.•*.*•*..*....... .................*,

A-59

- A-l

APPENDIXES
.Appendix A
Sections of the Bretton Woods Agreements Act Relating to the
National Advisory Council
(59 Stat. 512; 22 U* S. C. 286b)
National Advisory Council on International Monetary and Financial
Problems
Sec. 4« (a) In order to coordinate the policies and operations
of the representatives of the United States on the Fund and the Bank
and of all agencies of the Government which make or participate in
making foreign loans or which engage in foreign financial, exchange
or monetary transactions, there is hereby established the National
Advisory Council on International Monetary and Financial Problems
(hereinafter referred to as the ’’Council!l), consisting of the
Secretary of the Treasury, as Chairman, the Secretary of State, the
Secretary of Commerce, the Chairman of the Board of Governors of
the Federal Reserve System, and the Chairman of the Board of Directors
of the Export-Import Bank of Washington«
(bj (l) The Council, after consultation with the representatives
of the United States on the Fund and the Bank, shall recommend to
the President general policy directives for the guidance of the rep­
resentatives of the United States on the Fund and the Bank.
(2) The Council shall advise and consult with the President
and the representatives of the United States on the Fund and the
Bank on major problems arising in the administration of the Fund
and the Bank.
(3) The Council shall coordinate, by consultation or otherwise,
so far as is practicable, the policies and operations of the rep­
resentatives of the United States on the Fund and the Bank, the
Export—Import Bank of Washington end all other agencies of the
Government to the extent that they make or participate in the making
of foreign loans or engage in foreign financial, exchange or monetary
transactions.
(4) Whenever, under the Articles of Agreement of the Fund or
the Articles of Agreement of the Bank, the approval, consent or
agreement of the United States is required before an act may be done
by the respective institutions, the decision as to whether such
approval, consent, or agreement, shall be given or refused shall
(to the extent such decision is not prohibited by section 5 of this
Act) be made by the Council, under the general direction of the
President. No governor, executive director, or alternate representing
the United States shall vote in favor of any waiver of condition
under article V, section.A, o r in favor of any declaration of the
United States dollar as a scarce currency under article VII,
section 3, of the Articles of Agreement of the Fund, without prior
approval of the Council.

- A-2 -

Appendix A

(5) The Council from time to time, but not less frequently
than every six months, shall transmit to the President and to the
Congress a report with respect to the participation of the United
States in the Fund and the Bank,
(6) The Council shall also transmit to the President and to
the Congress special reports on the operations and policies of the
Fund and the Bank, as provided in this paragraph« The first report
shall be made not later than two years after the establishment of
the Fund and the Bank, and a report shall be made every two years
after the making of the first report,1 Eaeh such report shall cover
and includes The extent to which the Fund and the Bank have achieved
the purposes for which they were established; the extent to which the
operations and policies of the Fund and the Bank have adhered to, or
departed from, the general policy directives formulated by the Coun­
cil, and the Council’s recommendations in connection therewith; the
extent to which the operations and policies of the Fund and the Bank
have been coordinated, and the Council’s recommendations in connec­
tion therewith; recommendations on whether the resources of the Fund
and the Bank should be increased or decreased; recommendations as
to how the Fund and the Bank may be made more effective; recom­
mendations on any other necessary or desirable changes in the Articles
of Agreement of the Fund and of the Bank or in this Act; and an
over-all appraisal of the extent to which the operations and policies
of the Fund and the Bank have served,, and in the future may be
expected to serve, the interests of the United States and the world in
promoting sound international economic cooperation and furthering
world security,
(7) The Council shall make such reports and recommendations to
the President as he may from time to time request, or as the Council
may consider necessary to more effectively or efficiently accomplish
the purposes of this Act or the purposes for which the Council is
created,
(c) The representatives of the United States on the Fund and
the Bank, and the Export-Import Bank of Washington (and all other
agencies of the Government to the extent that they make or participate
in the making of foreign loans or engage in foreign financial,exchange
or monetary transactions) shall keep the Council fully informed of
their activities and shall provide the Council with such further
information or data in their possession as the Council may deem
necessary to the appropriate discharge of its responsibilities under
this Act,
Further Promotion of International Economic Relations
Sec, lU, In the realization that additional measures of
international economic cooperation are necessary to facilitate the
expansion and balanced growth of international trade and renrier
most effective the operations of the Fund and the Bank,, it is hereby
declared to be the policy of the United States to seek to bring
about further agreement and cooperation among nations and inter­
national bodies, as soon as possible, on ways and means which will
best reduce obstacles to and restrictions upon international trade,

*#. A —3 *-

Appendix A

eliminate unfair trade practices, promote mutually advantageous
commercial relations, and otherwise facilitate the expansion and
balanced growth of international trade and oromote the stability
of international economic relations# *In considering the policies
of the United States in foreign lending and the policies of the
Fund and the Bank, particularly in conducting exchange transactions,
the Council and the United States representatives on the Fund and
the Bank shall give careful consideration to the progress which has
been made in achieving such agreement and cooperation#

Sections of the Foreign Assistance Act of 1948 Relating to the
National Advisory Council
(62 Stat# 169? 22 U, S# C, 286b (a), 1509, 1513)
Sec# 106# Section 4 (a) of the Bretton Woods Agreements Act
(59 Stat, 512, 513) is hereby amended to read as follows?
,fSec# 4# (a) In order to coordinate the policies and operations
of the representatives of the United States on the Fund and the Bank
and of all agencies of the Government which make or participate in
making foreign loans or which engage in foreign financial, exchange
or monetary transactions, there is hereby established the National
Advisory Council on International Monetary and Financial Problems
(hereinafter referred to as the ^Council*)» consisting of the
Secretary of the Treasury, as Chairman, the Secretary of State,
the Secretary of Commerce, the Chairman of the Board of Governors
of the Federal Reserve System, the Chairman of the Board of Directors
of the Export-Import Bank of Washington, and during such period as
the Economic Cooperation Administration shall continue to exist,
the Administrator for Economic Cooperation, '*
Sec. Ill# (c) (l) The Administrator may provide assistance for
any participating country, in the form and under the procedures
authorized in subsections (a) and (b), respectively, of this section,
through grants or upon payment in cash, or on credit terms, or on
such other terms of payment as he may find appropriate, including
payment by the transfer to the United States (under such terms and
in such quantities as may be agreed to between the Administrator
and the oarticipating country) of materials which are required by
the United States as a result of deficiencies or potential
deficiencies in its own resources. In determining whether such
assistance shall be through grants or upon terms of payment, and
in determining the terms of payment, he shall act in consultation
with the National Advisory Council on International Monetary and
Financial Problems, and the determination whether or not a participating
country should be required to make payment for any assistance
furnished to such country in furtherance of the purposes of this
title, and the terms of such payment, if required, shall depend
upon the character and purpose of the assistance and upon whether
there is reasonable assurance of repayment considering the capacity
of such country to make such payments without jeopardizing the
accomplishment of the purposes of this title#

-

Appendix A

(2) When it is determined that assistance should be extended
under the provisions of this title on credit terms, the Administrator
shall allocate funds for the purpose to the Export-Import Bank of
Washington, which shall* notwithstanding the provisions of the ExportImport Bank Act of I9 U 5 (59 StaU.526)', as amended, make and administer
the credit on terms specified by the Administrator in consultation
with the National Advisory Council on International Monetary and
Financial Problems».«
/Section 1 1 5 (b) provides for the establishment of bilateral
and multilateral agreements between the United States and the various
recipient countries* Such agreements shall/ provide for the adherence
of such country to the purposes of this title and shall, where
applicable, make appropriate provision, among others, for--...
/
/Subsection/ (6) placing in a: special account a deposit
in the currency of such country, in commensurate amounts and
under such terms and conditions as may be agreed to between
such country and the Government of the United States, when
any commodity or service is made available through any means
authorized under this title, and is furnished to the participating
country on a grant basis. Such special account, together with
the unencumbered portions of any deposits which may have been
made by such country pursuant to section 6 of the joint resolution
providing for relief assistance to the people of countries
devastated by war (Public Law
Eightieth Congress) and
section 5 (b) of the Foreign Aid Act of 19^7 (Public Law 3^9
Eightieth Congress), shall be held or used within such country
for such purposes as may be agreed to between such country and
the Administrator in consultation with the National Advisory
Council on International Monetary and Financial Problems, and
the Public Advisory Board provided for in section 107 (a),for .
purposes of internal monetary and financial stabilization, for
the stimulation of productive activity and the exploration for
and development of new sources of wealth, or for such other
expenditures as may be consistent with the purposes of this
title, including local currency administrative expenditures
of the United States incident to operations under this title,
and under agreement that any unencumbered balance remaining
in such account on June 3 0 » 195^* shall be disposed of within
such country for such purposes as may, subject to approval by
Act of joint resolution of the Congress, be agreed to between
such country and the Government of the United States...

-Ai-5-

APPENDIX B

Table I.— Estimated gold and short-term dollar resources of
foreign countries, as of December 31, 194-8
(In millions of dollars)

TOTAL, ALL AREAS.

2/

TOTAL, EUROPE (excl. Sterling”
A
)... ..... .
TOTAL, ERP PARTICIPANTS .....
(excl. Sterling Area)««•••>•«*

9,049

5,814

6,196

4-,214-

1,982
wmn„„„„„ r
-

5,355

3,535

1,820

61

4-9

12

§21
77

647
32

174
45

•0••••••••

792
74448

571
551
20

221
193
28

Germany
Greece............9Co..«•••••
Italy.

179
27
422

-6
96

179
21
326

Netherlands, N.T7.I., and
Surinam.*«•»•*......tAA*.#;
Norway
Portugal and Dependencies....

361
130
2S5

21452
238

147
78
47

Sweden..
Switzerland;..... **. **. *••9••
Trieste* * •*U *a *'•* »»* ♦« ill •

1,886
4

81
1,387
—

49
499
4

iso

162

18

sa

679

162

France and‘Dependencies.••..«
(Dependencies)

Turkey.

130

.•••••••....99.

TOTAL, OTHER EUROPE...........

i—

Short-term
dollar
bal ancea..

14,363

Austria.Im ••(e»h «n e•*«•••..
Belgium, Luxembourg and
Belgian' Congo
Denmark

\

Gold 2/

TOTAL

Area and country

Czechosl ovaki a. ......*••*999*
Finland..................«•••

26
4-6
25

25
17
6

1
29
19

35

R u m a n i a . ............

36
71
223

216

1
11
7

125

111

14

21
4-5

■ u
25

21
20

Spain and Dependencies•••••••
Union of Soviet
Socialist Republics....9.••

Other Europe and /
Unidentified.^.
------------------------

223
■-—

... .

_

j

60

39
184j--------, - --------------1

APPENHIX B

•»A«**©»**

Table 1*— »Estimated gold and short-term dollar resources of
foreign countries, as of December 31, 1948— Continued
(in millions of dollars)
_____________ _____

?I
Area and country

Short-term
dollar
balances------

TOTAL

Gold 1/

TOTAL, BRITISH COMMONWEALTH ' .*
(in cl. Other Sterling Area)**

4,090

2,574

1 ,5 1 6

Sterling'Arèa Countries
in ERP**.* *••*«-• •«**.*.* *-»• •• •

2,231

1,6 02

629

1
12
546

Iceland* *•»•-•.•• »*•* »•••*••••
Ireland,*. • ***••.••»*•*,«••••«•
United Kingdom»** ••»•••••••

2
23

1
11

2 ,1 3 6

1 ,5 9 0

United Kingdom
Dependencies*.* • »•**.**•»»•

70

u

Other Sterling Area***••*.»•••

672

562

Australia* *••••••••••«••«*•
Burma* *• •••••••*•• *,*.** •• »• •
Ceylon»*•»•••*•••»•••*••♦ .•

108
1
1

86

u
u

22
1
1

India* *.** *.* ••••••••••*••••»

256

New Zealand* ,*•••••••.*».**.•••

308
3
28

u23

52
3
5

Pakistan* * * • • •.*• »»» •#»*•»» •
Union of South Africa******

24
199

14
183

10

Canada and Newfoundland****** ' 1,187

410

777

102

55

47

Egypt and Anglo-"
Egyptian Sudan*
••••* *••
Ethiopia* *••*••• ♦ ».* *«*••••*••
Tangier*•*.*• • »• • ••*••*•* »* ♦ • •

81
4
17

53
2

28
2
17

JC
M
»*»..........■ «***•

1,715

719

996

Afghanistan**•***••••*«»»•« »•
Indonesia** •'•**«*• •**•• •«*»» •
Iran*** •**•**••» •• •
*» •

41
218
163

37
177
X40

4
41
23

I sr ael ** * «* »■ *.**•*••••• •*•««*•
Japan******* *»■ •«»•*■ ***•*••■ •***■ • •
Korea (south)«* »**••• •*»**•*•»

y , „ '
206 2
u

16

288
25

Pale stine (Arabian) ** **« •* *¿ »
Philippine Rèpublic*********•
Saudi Arabia* * * • • • • • •
••

2
-489
17

u1
u

TOTAL, AFRICA.^............

TOTAL, ASIA

----J- . ....

.

----- -------- —

16

u

70
no

16

82
25
2
488
17

APPENDIX B

-A-7-

Table 1«— Estimated gold and short-term dollar resources of
foreign countries, as of December 31, 1943— Continued
(In millions of dollars)

Area and country

TOTAL

Gold 1/

Short-term
dollar

ASIA— Con.
34

362

124

TOTAL, LATIN AMERICA.^....,-....

2,744

1,487

1,257

Argentina. ***** **•««,...*».. ***
Bolivia*,.**..,...,....,..,*.
Brazil* **• »...«•*•••••*•** «•*

357
40
441

141
23
317

216
17
124

Chile.*,**... *.............. *
Colombia. •**•••*••..••••«.•*4»
C
u
b
a
.
.

99
105
508

43
51
289

56
54
219

Dominican Republic.••••«•«..•
Ecuador «*.*•*.*•*.»....*.....
El Salvador•.«*•••••••*.•«•..

40
31
34

4
21

15

36
10
19

Guatemala.
Honduras ....•••¿••****..**.**
Panama. .«.*.« *•♦***.«.... ...*. #

55
4
72

27
—
—

23
4
72

Paraguay. *,**,«*. ........ *.*.*
Peru......
Uruguay. •••••••••••«••••••«..

3
73
202

-*•
20

164

3
53
38

Venezuela. .,.«•*«#•* • • * • • * ♦
Other Latin America and
Unidentifled....•••••••*••*

444

322

122

236

50

186

UNIDENTIFIED, AIL AREAS........

16

u

t

94

to
CN
C\i

60

Siam. «, •,*«««... ..•••*-«•*•*•.
Other Asia and' '
Unidentified* *. ,,*’•
♦

16

1/

Official gold holdings? For countries whose current holdings
have not been published, available estimates have been used, or
the figures previously published or estimated have been carried
forward*

2/

Excludes holdings of the International Monetary Fund, the Inter­
national Bank for Reconstruction and Development and other inter­
national organizations* Total gold and short-term dollar balances
of international organizations on this date were $3,376,000,000,
consisting of $1,472,000,000 in gold and $ 1 ,904,0 0 0 , 0 0 0 in short­
term dollar balances# Also excludes gold holdings of the U.S.S.R.

2/

French Indo-China is included under French Dependencies*

•A«*B**

APPENDIX B

¿/

No estimate made* .

5/

Includes gold to be distributed by the Tripartite Commission
for the Restitution of Monetary Geld to claimant countries,
including European Recovery Program countries, in accordance
with the Paris Reparations Agreement*

6/

Excludes sterling area countries and dependencies of European
countries*

7/

Includes approximately $82,000,000 in gold which other countries
claim Japan held on earmark for them*

NOTE:
GOLD:

Data represent total holdings of governments, central
banks, and other official institutions without regard
to location of holdings#

SHORT-TERM DOLLAR BALANCES: Composed principally of deposits
in United States banks and holdings of U*S* Government
Treasury bills and certificates.

Source:

Treasury Department and Board of Governors of the
Federal Reserve System*

APPENDIX B

-A-9-

TabÎe 2*— ¡-Gold transactions between the United States and other countries,
January 1, 194-5, through December 31, 194-8
(/ equals net purchases^/ * equals net salesl/)
(In millions of dollars at $ 3 5 per fine troy ounce)
Year ending December- 31-.1946
1945
1947
1948

RET TOTAL
4- years

Area and country

TOTAL, ALL AREAS............

/4

,

642 8
.

■

/l,510.0

/2,864.4

/721.3

-452.9

81.6

/167.5

p2

(2/)
/278.5

---------------MM--------------•-------J. r — ~

¿¡2,651.5

/

926.8

,475.6

jÍL,l£1.2
/ 558;9
/ 321.2

/
/
/

734 .3
1 5 .3

406,9
/ 264.6
/ 238.0

Belg'J
0(9
Ne unerlands. q (,..o ..c &9©<>90
Portugal«»

/
/
/

337.9
171.5
121.1

/
/
/

69.8
4 0 .7
63.0

/
/
/

Turkey

49.6
35.8
28.4

/

10.4

V

56.2

Poland*

/
/
/

/

i
I r-4

/

27.4

Norway, «(«««(«n« »««•»**» «
Denmark«-»««...«•••*••••»,o
OzeehoSlovakia,..»•••**««•

/
/
-

20.7
3.0
2.1

-

4.1
14.9
112.3

TOTAL, EUROPE,

.

.

.

.

.

.

.

g

United K i n g d o m ,
Erance
Sweden. c o a ©«*,«,
* . . «

. . »

e

. . »

«

.

i

,

» « . , « . , *

• • » < > « » • • • •

U lîü j

. . . * ■ «

• ** ■ •# «■ *« **

. *

u .j .«»«?.o

•

»PP»

/

222.8
130 ;8
116.0

(gA

¿ 80.2
/

14.2

—

10.0
7.0

-

/

3.6

/

.2
PUPP

-

/
-

5.6
5.8

«pp

PPM*

/

3 1 .1
'

47.9

-

- 10.0

35.8
«Ptp»

/ 17.1

Mp«

4.2

Other Europe.

0

Greece,••.•••
Vatican Cxty^,....
Switzerland..»..o«.o*,.«.

3.°

/

PPPP

CS/)

-

¿1
¿6
10.0

4*4
V 12,1
-

«2

V

«ppp■
.

3 .0

2.1

29.9
—

—
- 2.2
- 86.8
/

1.8

588,1

/

81.2

808.4

/171.0

-472.5

Argentina,
Mexico,. . « « » . * » * , . .
Colombia.•••••••••••.«•••

/ 1 769; 9
/ 120,1
/
52.8

/
/
/

114¿±
61c6
15.5

/
/

727,5
45;4
6O.O

¡453.2
/ 36.9
« 5.2

••224*9
- 23; 8
- 17.5

Chile....................
Brazil................. «..:
Uruguay.,..•••••••••••

/
-

/

.3

/

8.7
.1
25.1

/ 18.4
- 10.0
— 4,9

*

V enezuela................

- i94;o

3,7

190.0

Other Latin America„.«©s.

/

45.9

4P*

9o2
— 30o0
/ 2 1,8

- 73.1
- 85.0
/ I6 .8

TOTAL, ASIA AND OCEANIA,„..

-

177.6

PP

Afghanistan,...,*...© ©•©*a

-

TOTAL, LATIN AMERICA..... .

Cthor Asia & Oceania*

/

25.2
34;s
7.0

18,0
-186.5
/
26.9

«■PP

/

10.7

«■* 108.0
10.0
3.0

PP

65 ;0

/

10.3

4 .1
pp pp

P*

/

4*1

•P

-

2.2
24;9
- 37.9
-

1*1

/

1 3 .7

-188.3

;7

-

1 .6

/

2¿0
.5
16.2

l6*0
-185.3
/ 13.0
-

APPENDIX B

-A-10-

Table 2#***Gold transactions between the United States and other countries,
January 1 1 194-5, through December 31, 194-3— Continued
(r equals net purchases;!/ »- equals net salesl/)
(In millions of dollars at $35 per fine troy ounce)
Yeslt ending December 31—
1948
194-6
194-7

Area and country

KET TOTAL
4 - years

NORTH AMERICAS CANADA*#.*###

/6S5.9

(2 / 0

¿311.2

¿337,9

AFRICA; UNION OF S. AFRICA##

¿848,9

¿498,6

A56.0

/ 94# 3
/ 1 6 .1

INTERNATIONAL BANK...

i

UNALLOCATED*..... .

/ 27.2

1/

By the United States*

2/

Less than $50,000#

Notes

Sources

18 . 8

/

1 .2

/

/

6.3

¿ 10.4

1.5

/

6 ,$

Figures will not necessarily add to totals because of rounding#

Treasury Department#

1945

/3 6 # 8

—
/ 3,7

'

- Ar-11

APPENDIX!Q
STATISTICAL TABLES 01? UNITE! s t a t e s g o v e r n m e n t
POSTWAR FOREIGN LOANS AND OTH|r CREDITS, AND GRANTS
Explanatory Note
The data in this appendix relate to^ loans and other credits and to
grants provided by the United States Government to foreign governments
and entities from July 1, 19*+5,through December 3 1 , 19^8* Because there
were some credits and grants of a peacetime character between July 1, 19 5»
and VJ-day, and data are readily available only on a quarterly basis, a
beginning date of July 1, 19^5* (except for lend-lease data, which have a 1 £
beginning date of September 2» 19^5), has been adopted for the postwar period.
The statistical tables presented in this appendix and this explana—
tory note were prepared by the Clearing Office for Foreign Transactions,
Office of Business Economics» Department of Commerce, in consultation^
with the International Statistics Division, Office of International Fi­
nance, Treasury Department, on the basis of the latest information avail­
able from Government agencies reporting to the Clearing Office,
Items which are necessarily based on estimates, particularly all
lend—lease grants and some lend— lease and surplus—property credits, have
been adjusted or qualified on the basis of information received to the
date of preparation of these tables, and are subject to future adjustments.
Foreign aid has in some instances been extended subject to future
settlement which may or may not ultimately result in repayments. Aid
rendered on this basis is included with grants in this appendix, and
constitutes approximately half of the total grants during the postwar
period.
The following credits are excluded from the data in the tables: short­
term credits (less than 6 months for credits of the Office of the Foreign
Liquidation Commissioner and the War Assets Administration: and 9 0 days or
less for all other agencies)» the revolving special exporter-importer credits
of the Export-Import Bank;* and advance payments on commodity-procurement
contracts. Also excluded are several operations of the United States
Government abroad which are sometimes called grants, including the waiver to
France of vessels intended as reparations to the United States from
Germany, the return of reparation vessels to Italy, payments to the jo^nt
commission fighting foot-and-mouth disease in Mexico, and payments abroad of
pensions, annuities, dependency allotments, and certain claims.
Transactions covered
The following types of United States Government transactions are
included in this appendix:
■1#

CREDITS, —

These include:

(a) Loans,— These (except for loans extended by the Economic
Cooperation Administration) represent cash loans to foreign
governments, and to private entities in foreign countries, which

result in debtor-creditor relationships, anticipating repayments
of principal and usually payments of interest* Direct loans by
the Export-Import Bank and other Government agencies and disburse­
ments of agent banks on loans fully guaranteed by the Export— Im­
port Bank are included* In the case of the Economic Cooperation
Administration^loans represent the aid extended to European Re­
covery Program participants on a credit basis*
Loans of the Economic Cooperation Administration originate
in commitments made by the Administrator but the loans are made
by the Export-Import Bank as agent for the Economic Cooperation
Administration.
Loans of the Export-Import Bank originate in commitments or
authorizations resulting from approval of loans by the Boa^d of
Directors* These included* as of December 3-^* 1 9 ^ » certain loans
which had not been formalized by executed contracts or agreements*
These commitments, included in the appendix tables* are as follows

TOTAL....

f

9

♦

*

#

t

$ 131 ,668,076

•'

EEP Countries:
Turkey..*••••••♦•*• • 1 0 , 1 5
Unallotted European cotton credits

2

,

5 0 7
19*402,969

Latin America:
Brazil.• • • * * * » • • » • • 2 7 , 3 9 6 , 0 0 0
Chile*..**...*...................
Haiti*«•*•*#.*•.•»••••.••«.«••*•••
Mexico* * •*«
,**'*••♦.«*-«♦■* **

21,575,000
^.000,000
24,000,000

Venezuela*..*••«#•*.......
Uruguay..*<,*.*•* **«**•••*•,•••*•»*
Unallotted Latin America.,..,.*••*

2,337*697
i4l,600
2 2 ,6 6 2 , 3 0 3

(b) Property credits*— These represent credits extended abroad
in the disposal of surplus property, including merchant ships,,
and in the settlement for lend-lease articles and services.
These extensions of credit result in debtor-creditor relation­
ships, anticipating payments of principal and, in most cases,
of interest*
In analyzing surplus-property and lend-lease credits,^
consideration should be given to the Special Hotes on Property
Credits which appear subsequently in thia Explanatory Notp*
Certain property-credit settlements and agreements provide
for undertakings by the foreign government, other than in the
form of payment of United States dollars, which, when completed
will constitute a discharge of the whole or a part of its obli­
gation to the United States Government* Provisions governing
the collection of principal and interest vary and may call for
payment in the form of different combinations of United States

dollars, real property# improvements £© real property# services# and
foreign currencies# Collections shown in the tables do not i n ­
clude the undertakings of foreign governments, except to the ex­
tent that they have been reported as Completed, Eeporting
usually lags behind actual deliveries/ of real property and for­
eign currencies#
(c) Commodity programs#— These are included with property cred­
its and represent credits resulting from commodity shipments by
the United States Government to the military governments for
Western Germany and Japan# The major commodity advanced to Germany
and the only commodity advanced to Japan under these programs was raw
cotton, made available by the Commodity Credit Corporation of the
Agriculture Department through the U, S, Commercial Company# a
subsidiary of the Reconstruction Finance Corporation# The final
shipments were made to Germany in July 19^7\a&à to Japan in
January 19^8# In December 19^7* the programs were transferred
from the U. S, Commercial Company to the Army Department# As of
December 3 1 * 19^8, payment in full for all shipments# handling
charges, and administrative expenses had been reported#
A commodity program# intended to replace the programs
described above, was authorized in Public Law 820, approved
June 2 9 , 19^8# This act authorized a revolving fund of
$150,000,000 for the Army Department, as a public-debt trans­
action, for the purchase of natural fibers (and materials
used in processing and finishing such fibers)^to be processed
in occupied areas and sold# Through March 3 1 # 1 9 *+9 » no commit­
ments had been made under this Congressional authorization#
2#
G-BANTS,— These represent aid by the United States Government to for­
eign governments or other entities for which no repayment is expected
or for which repayment terms are currently indeterminate# Supplies
furnished to foreign governments or entities are shown at actual or estimated
"landed costn abroad, which is defined to include all costs chargeable
to the United States Government for delivery at the end of ship's
tackle at the port of final debarkation. Services generally are
reported at the estimated cost#
Specifically, the grants included in this appendix are the following;
(a) Economic cooperation#— TheBe represent aid provided by the
Economic Cooperation Administration, on other than a credit
basis, furnished under title I and section UoU(a) of title IV
of the Foreign Assistance Act of 19^8# Title I of this Act,
Public Law U 7 2 , authorizes the European Recovery Program# and
title IV is the authority for the Chinese assistance program#
Where goods have been shipped to a dependent area# the aid
has been shown as rendered to the parent country# The amount
shown as utilized for "Unallocated EBP" represents the dollar
administrative expenses of the ECa #
(b) Relief (other than civilian supplies)*— These represent
grants furnished by the United States Government for relief abroad
directly to a recipient area or to international or national agencies
(in particular to UNRRA#, the International Childrens Emergency Fund^
the Intergovernmental Committee on Refugees, the International Refugee
Organization# and the American Red Cross).

» t

-JWl1*.

4

The data included as relief and rehabilitation provided
through UNRRA cover only those goods, services, and funds provided
by the United States Government* In most cases UNRRA shipments
were destined for the country where they were to be used, and data
are reported accordingly. In some instances, however, goods were
later transshipped and the country of destinâtion,which is reported
in these tables.was not the country actually utilizing the supplies.
The dollar value of supplies, as transshipped, is small relative
to the total* Included in ‘’Unallocated, International Organizations”
in the tables, is the aggregate of approximately $365,000,000,
representing the administrative costs and unclassified shipments
of UURRA plus the contributions in dollars given UNRRA for use
x^herever needed*
The State Department administers contributions to the International
Children1s Emergency Fund, authorized under Public Law 84 and title
II of Public Law 472* Appropriations and Presidents Emergency
Fund allocations have been available to the State Department for
transfer to the Intergovernmental Committee on Refugees; and
appropriations have been made for participation in the International
Refugee Organization. These are shown in the tables as'\Jnal located,
International Organizations/
The data included for American Red Cross cover only supplies
provided by United States Government procuring agencies with
appropriated funds. Included also in relief are data on the postUNRRA relief programs authorized by Public Law 84, approved
May 31, 1947, and on the interim-aid program authorized by Public
Law 389, approved December 17, 1947* Terminal administration of
these two programs is under the Economic Cooperation Administration.
In the aopendix tables, $2,000,000 of the $10,000,000 total
American Red Cross aid, and $3,000,000 of the total $278,000,000
post-UHRRA relief is shorn as ‘’Unallocated, All Areas#1’ These
represent undistributable American Red Cross aid, administrative
pxoenses of the post-UHRRA program, and reimbursements under the
post-UNRRA program to American voluntary relief organizations for
ocean freight expenditures incurred in sending aid abroad.
Goods, services, and funds provided by private -persons or
organizations, even though furnished through Government-approved
organizations, are excluded from these data*
(c) Civilian sun-plies.— These represent principally supplies
furnished by the United States Jjœmy for civilian use abroad to
prevent disease and unrest in occupied areas; issues of supplies
by the Navy Department on the /Pacific Islands; and supplies financed
out of lend-lease appropriâtiàafa^'^üwl furnished to the Army Department
for Italian relief.
Army Department data include all reported shipments of civilian
supplies plus net diversions abroad from military stocks, Alse
included is the value of incentive materials provided Germany and

-^.15’

Japan, Services rendered to civilians are not included because
of the infeasibility of segregating the cost of such services from
the cost of regular military operations. Shipments have been shown
by individual country, except for the United States and British
zones of the European theater, which have been shown in the appendix
tables as '’U n a ^ ' ^ ^ e d ERP,”
Navy Department figures show deliveries of civilian supplies
to reported areas, An adjustment of these figures has been made
by the Navy Department to cover diversions to or from other stocks.
To assist the United States Army in furnishing relief and
rehabilitation supplies for Italy, $1 0 0 ,0 0 0 , 0 0 0 of lend-lease funds
was made available in 1945, Since Italy had not been designated
as eligible for lend-lease aid, these supplies were turned over
to the Army as an intermediary in distribution. To pay for the
transportation of these lend-lease financed supplies, an additional
$40,000,000 was earmarked from lend-lease funds. The data in these
tables have been adjusted to exclude these transactions from lendlease, and to include them under civilian supplies,
(d) Lend-lease.— The figures in this appendix for lend-lease aid
represent the estimated value of such aid furnished on a grant
basis (often referred to as ”straight” lend-lease) during the period
September 2 , 1945, to March 31, 1948, (Lend-lease data as of March. 31,
1948, were the most recent available at the time of compilation of
these appendix tables.) Lend-lease grants are broken down by
requisitioning governments and are shown only against the United
Kingdom for the British Commonwealth, against France for all French
areas, etc.
Although governments of other nations provided some aid in
the postwar oeriod to the United States in the form of reverse
lend-lease, such assistance received has not been offset against
the assistance furnished because complete reverse lend-lease data
are not available.
The amount shown as ’’Unallocated, All Areas” represents
principally losses on inventories and facilities, and miscellaneous
charges, including administrative expenses.
(e)

Other grants.— The remaining other grants include?
. 1, Aid in cultural and economic urograms for the American
Republics, representing principally programs instituted by
agencies whose functions have been consolidated in the
Institute of Inter-American Affairs in the State Department.
2 . Financial aid to China under Public Law 442, approved
February 7, 1942, which directed that $500,000,000 be pro­
vided to China to assist in prosecuting the war against
Japan and in stabilizing the Chinese economy. This pro­
gram was administered by the Treasury Department and ap­
proximately $1 2 0 ,0 0 0 , 0 0 0 of aid was provided in the post­
war period.

¿A**1 6 ***

I

3. Aid to China under section 404(h) of Public Law 473»
approved April 3 # 1948, which authorized the President to
provide $125,000,000 in military aid to China»
4. Military and economic aid to Greece and military aid
to Turkey under Public Law 75, approved May 2 2 , 1947, and
military aid to both countries under title III of Public
Law 472, approved April 3, 1948.
5* Aid to the Philippines upder the first three titles
of the Philippine Rehabilitation Act of 1946 which
authorizes disbursements for compensation for private
war— damage claims under title I, surplus property trans­
fers under title II, and disbursements for the restore—
tion and improvement of public property and essential
public service under title III.
Definitions
Because of the wide variety of transactions and differences in the
accounting procedures of the various Government agencies, it is not
possible to prepare simple definitions applicable to all cases, but
the classifications used are as consistent in principle as could be
achieved.
1.. UTILIZED represents for—
(a)

Loans:
!*• Economic Cooper at ion Administration.— The amount of aid
extended on a credit basis, based upon calculations by the'
Economic Cooperation Administration. Phis aid, except to
Iceland, was extended originally on an indeterminate basis
out of appropriated funds. While the utilization shown
does not represent either (l) disbursements out of publicdebt funds (except in the case of Iceland), as reported by
the Export-Import bank, or (2) reimbursements of advances
from appropriated funds, as reported by the Economic Coop­
eration Administration, it is eventually incorporated into
the fiscal records of both agencies by the disbursement of
public-debt funds and the reimbursement of appropriated
funds. Subsequent to December 31, 1948, the allegations
between loan and grant utilizations, particularly
the
case of Belgium, were subject to minor adjustments, due to
pending amendatory loan agreements.
2».

All other agencies.— The amounts disbursed under the
terms of the agreements.
(b)

Property credits, including commodity programs:
1*

Lend-lease.— The inventories of lend-lease goods in the

—JW17’-’

hands of civilian agencies of recipient governments at VJ—
day and hillings to foreign governments for post-VJ-da.y ship­
ments under pipe—line agreements# In many cases these
amounts have "been determined by war—account settlement agree­
ments. In the case of Liberia, utilization represents ex­
penditures reported by the Navy Department to the Treasury
Department.
2. Office of the Foreign, Liquidation Commissioner surplusproperty credits.— The full amount of bulk-sale credit agree­
ments plus the amounts involved in sales contracts signed
under other credit agreements, regardless of the time of
delivery of the property» In most cases, however, these
amounts are subject to adjustment upon final delivery of
the property and final documentation and accounting#
3# Maritime Commission ship-sale credits.— The principal
amount of mortgages received by the Commission from for­
eign purchasers of merchant ships#
4# War Assets Administration surplus—property, .credits»—
The amounts involved in sales contracts signed under credit
agreements, regardless of the time of delivery of the prop­
erty# In some cases, these amounts are subject to adjust­
ment, pending final delivery and accounting.
5#
Commodity programs for Germany (western) .and «Japan# —
The value of the raw materials shipped, plus shipping costs,
handling charges, and administrative expenses#
(c)

Grants:
1»
Economic Cooperation Administration#— Shipments in the
case of United States Government procurement, and expendi­
tures in the case of cash reimbursements to foreign coun­
tries or to United States banks extending credits to for­
eign countries under an BCA letter of commitment#
2»
Other grants.— Shipments in the case of United States
Government procurement, and expenditures in the case of
cash disbursements to foreign countries#

UNUTILIZED represents for—
(a)

Loans and other credits* The difference between net agency
authorizations (cumulative'gross authorizations less", cumulative
expirations and Cancellations) and the amount utilized.
In addition, there is included, as unallocated on a
country basis, for the:*

l é

Economic Cooperation Administration»— The uncommitted
loan and guaranty authority* This is the diiference "be­
tween the $1,000,000,000 authorized by title I of the For­
eign Assistance Act of 19^-2 (Public Law ^+72) as a publicdebt transaction and the loans authorized or committed <.by
the Economic Cooperation Administration* This $1,000,000,000
(authorized for the purpose of extending assistance to Euro­
pean Recovery Program participating countries on a credit
basis and of making guaranties), has been considered as the
amount available for credits* Of the amount shown as un­
allocated at December 3 1 * 1 9 ^ 2 , there is included a maximum
contingent liability of $ 1 ,2 5 9 . 2 0 0 on guaranty contracts
signed*
2#
Export-Import Bank*— The uncommitted lending authority,
x#e*, the difference between the statutory lending author­
ity of the Bank, and the sum of the outstanding indebted­
ness to the Bank plus the unutilized authorizations of the
Bank*
3*
Army Department«— The uncommitted commodity-program
credit authority#

(b)

Grants:
Civilian, supplies*— An estimate based on the unexpended
appropriation programmed for this purpose#
2.
Post-UHBBA program*— The unexpended obligation for
ocean transportation of supplies donated to or purchased
by American voluntary relief agencies*
Interim-aid program*— The $1,000,000 known to have been
transferred between December 3 1 » 19^2, and March 3 1 * 19^9*
augment the economic-cooperation program for Trieste.
h.
Institute of Inter-American Affairs*— The difference
between the agreed aid and the amount utilized (agreements
have been signed to provide specific amounts of aid).
Other active programs*— The difference between the ap­
propriation and the amount utilized. In the case -of the
Economic Cooperation Administration, the $h,000,000,000
appropriated in Public Law 793 for the purpose of extend­
ing assistance to European Recovery Program participating
countries on a grant or (under certain conditions) credit
basis has been considered as the amount available for
grants*

In those instances where programs have been obviously com­
pleted, although the recorded grants utilized are short of the
final total, the computed unutilized amount has been adjusted
to zero*

3*
OUTSTANDING INDEBTEDNESS represents the net of credits utilized
less repaid# The data necessarily include the results of trans­
actions taking place before July 1» 19^5* Indebtedness arising
out of World War I, however, is excluded#
U.
AUTHORIZED represents, for the period July 1, 19^5* through
December 3 1 , 1948, the gross amount of loans and other credits
authorized or committed, as well as any increase in prior auti>orizations or commitments* This includes all loans and other cred­
its approved by the responsible officials of Government agencies
from available funds even if they had not been formalized by signed
credit agreements. Because the lack of formal agreement may become
important in some instances, the amounts in this category as of
December 3 1 , 19*48, included in table 6 are tabulated under Trans actions Covered of this Sxplanatory Note. Included also in authorized
are (l) the increase between July 1» 19^5» an(^ December J l , 19*48,
in the uncommitted lending authority of the Export— Import Bank, (2)
the uncommitted loan and guaranty authority of the Economic Coopera­
tion Administration at December 3^> 1 9 ^ » and- O ) t i l 8 uncommitted
commodity-program credit authority of the Army Department at
December y i, 19*48#
EXPIRED AND CANCELLED represents all expirations and cancel­
lations of authorizations or commitments occurring during the
period from July 1, 19*45, through December 3 1 , 19*48, regardless
of whether the loan or other credit was authorized prior or sub­
sequent to July 1, 19*45»
6#
REPAID represents payments on principal only, including repays;
ments on f e m e and other credits utilized prior to July 1, 19*45* ^ut
excluding repayments on debts arising out of World War I#

Special Notes on Property Credits
As previously pointed out, the data presented in the tables under
surplus-property and lend-lease credits, are subject to the following
qualifications for individual countries}
1.

Belgium.— The final amount of the Foreign Liquidation
Commissioner credit will depend on the proceeds received
from the resale of surplus property by the Belgian Govern­
ment* The figures shown for credit committed and utilized
($*49,000,000) are based upon original estimates.
These
figures may ultimately be revised downward by approximately
$ 1 0 ,0 0 0 ,0 0 0 , based on current estimates of the proceeds
from resale of United States surplus property by the Belgian
Government for the Joint account of the two countries©
2#

France#— The $*420,000,000 credit, assignable to lend—
lease under the war—account settlement agreement of May 28,
1 9 ^ 6 , was not a fixed amount but was an estimate subject to
later adjustment pending final determination of the amount of
goods delivered© The utilization shown in the tables ($3 7 0 ,7 0 5 ,9*46),

•*Ai*2Q**

Represents the net hillings to December 3 1 » 1948, under the
agreement Of May 28, 1946* A final determination was subse­
quently made in the agreement signed March l4, 19^9* which
fixed the Obligation of France assignable to lend-lease at

$353*300.000* 3*
Germany ( w e s t e r n ) The Foreign Liquidation Commissioner
credit of $183*750#000 for bizonal Germany shown as committed
and utilized will ultimately be adjusted downward due to a
substantial deficiency of deliverable property under the bulksale agreement, dated January 23 , 194g. This deficiency is
due in a large degree to the withdrawal of property pre­
viously declared surplus by the Army because of a reclassification
of arms, ammunition, and implements of war in Presidential
Proclamation 2776 , effective April 15 , 1948. Tables have not
been adjusted to reflect the current estimate of total utilization
under this bulk-sale which is approximately $85,000,000, subject
to further revision in final accounting.
4.
Italy.— The Foreign Liquidation Commissioner credit to
Italy shown as committed and utilized in the amount of
$178,000,000 will ultimately be adjusted downward due to a
deficiency in deliveries under the first bulk-sale agree­
ment ($160,000,090), dated September 9 » 19460 The current
estimate of total utilisation on both bulk sales is approxi­
mately $l4l ,000,000«, Tables have not been adjusted accordingly.
5*
Netherlands.— Lend-lease credits committed and utilized
are stated in the amount of $48,000,000, the agreed net
indebtedness established by the war-account settlement
with the Netherlands dated May 28, 19^7* This includes
$840,000 due for surplus property sold by the Foreign
Liquidation Commissioner in January, 1947* The difference
between the $ 65 ,000,000 unutilized lend— lease credit reported
as of June JO, 1945» and the $48,000,000 war-account settlement
credit, has been shown as a cancellation of credit commitments.
6«

United Kingdom.— The lend-lease credit commitment shown
in the amount of $ 590 .000*000 represents the amount assigned
to lend—lease in the wax—account settlement agreements with
the United Kingdom dated December 6 , 1945» and March 2 7 »
1946. This amount was composed of $472,000.000, regarded
as the ’’fixed11 amount, and $118,000,000,subject to future
accounting adjustments representing the net estimated amount
of the lendr-lease and reverse lend-lease pipe lines, less
the net claims. r
.

A later agreement with the United Kingdom, signed
July 12, 1948, set $90,446,911 as the amount to be paid to
the United States Government to replace the previous esti­
mated amount of $118,000,000. This reduction of $27*553»0^9
has been shown as a cancellation of the original commitment.

—Am21—

U. So S«,R,— The gross lend-lease commitment represents
the original estimated value of articles and services on
order and not transferred as of VJ-day, which were desig­
nated for transfer on a credit basis; the cancellation
represents a downward revision in the original estimate«

7*

g.
China«_The gross lend-lease commitment represents the
original estimated value of lend-lease articles and services
on order and not transferred as of VJ-day, which were desig­
nated for transfer on a credit basis; the cancellation repre­
sents a downward revision in the original estimate»
The $20,000,000 shown as a credit for the Army Depart­
ment represents the estimated amount of surplus property
delivered to China by the Army subject to future settlement«
9.
India»— The exact amount of the Foreign Liquidation
Commissioner credit will depend on the proceeds received
from the resale of surplus property by the Government of
India for the joint account of the United States and India®
The figures shown for credit commitment and utilization are
based on the latest estimates©
10, Latin America,— Lend-lease mutual-aid agreements were
signed with all the American Republics except Argentina
and Panama, Combined data for these lend-lease credits are
shown in''Unallocated^ Latin America»
Presentation of Data in Tables
The presentation of the data for foreign credits and grants
of the United States Government in the tables of this appendix^while
not identical v,with that in previous reports of the National Advisory
Council-is similar and comparable©
Table 1 shows foreign credits and grants utilized in the 3^-year
postwar period in various combinations with amounts unutilized as of
the end of the period. Table 2 is a summary oi the status of foreign
credits as of June 3®» 19^5* and as of December 3 1 » 19H&t and of the
activity during the intervening 3-J-year period, Table 3 is'in three^
parts and presents, by type or program, grants (l). utilized in the 3 2 year postwar period, (2) utilized in the 6—month period ended December
3 1 , 19hg| and (3 ) unutilized as of December 3 1 , 19^8, Tables h, 5 ,
6 , 7 , g, and 10 present a breakdown by credit-extending agency of the
credit data (as of December 3 1 » 19^&, and during the 3gwyear period)^
summarized in table 2» Table 9 shows a breakdown by credit—extending
agency of the credits utilized in the 6—month period from July 1* 19^2>,
through December 3 1 » 19^^o All tables present the data by geographical
area and country*
The figures in each of the tables are rounded to whole millions of
dollars; components will not necessarily add to totals because of round­
ing, In the “IBP Participants11 area, each country having any data has
been shown individually. In all other areas, any country whose total

C'"

or largest dollar amount cannot "be rounded to more than $5,000,000 has
been combined with other countries ii* that area whose dollar amounts
cannot be rounded to more than $5*00Q fdOO and the total has been round­
ed and shown as M0ther*H In determining whether a country should be
shown individually or in combination with other countries in an area,
each table has been tre&ted separately.
Whenever the country detail to be shown for an area is one item
only (one country or, in accordance with the above, exclusively
®Other®), only the area total appears, For each item shown (area,
country, other, or unallocated)* the figures for that item in any
column are presented, even though the figure is $5*000,000 or less*
The unallocated items are aid or potential aid that cannot be
allocated by country. In most instances such items have been allo­
cated by area. The composition of the unallocated items is covered
either elsewhere in this Explanatory Hote or in footnotes to the
tables.

APPENDIX C

«A«»23**

Table l f««Summary of U.S, Government foreign credits and grants:
Utilized, July 1, 1945* to December 31, 1948; and unutilized as of
December |1, 1948, by area and country ¿ /
(In millions of dollars)
Credits ulus Grants
Utilized Unutilized

Area and country

GRAND
TOTAL

TOTAL, ALL ARiiAS, ••..*•• •*

26,522

2 0 ,1 3 9

6,383

TOTAL, E UR OPE*•••..*.•*«»*

19*4*53

15.407

4.046

TOTAL* ERP PARTICIPANTS;.,

17,859

1 3 ,8 4 5

Austria••«,,*««..,.**###
Belgium & Luxembourg*...
Denmark*••.••#»•••.••*«*

591
442
133

France* «•••»••••»••••••»
Germany (west ern)
Greece.*«•«,**.»«».«,***

Ireland *
Italy • * « e « * o . . » . . . * . * é * *

806
181

446
102

35

4

2

2
21

—

Netherlands.•••.••*••«»«
Norway«* 1 .'.B — M M B W M B
Sweden.

3,387

14,507

1 ,7 9 6

2,605

10.052

4,014

6,633

2,282.

8 ,9 4 4

441
299
56

151
143
77

14
182
45

22

555

49

211

10

78

3,481
2,/+87

2,785
1,781

695

1 ,1 0 0

841

258

1,370
24
15

827

707

221
121

1,284
2,243
964

6

2

(2 / 0
1,423

4
77
477

2
60
181

(2 /)

77
1,901

243

1 ,4 7 6

359
79
31

300

103
47

403

* *

*

TOTAL, LATIN AMERICA,. . . . .
Bolivia*
Brazil*
Chile

, . . e , .

C o l o m b i a * * **
Cuba*
E c u a d o r * .**V**

— —

49
23
2

138

66

16

5,378
164

578
233

4,095

622

182

-4

1,238
215

1 ,5 9 4

1 ,5 6 2

32

163

323

1 ,1 0 8

20

20

«4M

mmmm

8

183

111

28

22
101

36

2

«...

....

16

1
2

40

460

18
442
458

38
224

2
365
236

300

300

-a.

1

299

515

317

199

438

44

33

21

18

3
36
47

19
97
82

16

5,956
397

Y u g o s l a v i a

12

—

United Kingdom*. . . . . . . . .
Unallocated ERP. . . , • • ♦ * .

. . . . . . . * . . . . . *

85

4
17

—

99

Hungary.
Poland.% « «
U, S , S.R*

—

....

28
237

Albania* . * « . » • • • , ; « > , * : * • *
C z©cho slovakia • • • • # * > • • $
Finland,

8,628

—

Switzerland*. . . . . . . . . . . .
Trieste
Turkey

TOTAL , OTHER EUROPE . . . . .

_____ -, — r:Utilized ulus Unutilized
Loans .Property Grants
credits

213
140
18
443

118
86

7

213

82
39

20

'

—

2
—

39

19

20

37

11
16

11

4.4
9

10

—

14

(2 /)

7

28
155

1

5
4
1

<2 / 0
2

•*A«24•

APPENDIX G

Table 1,-^Summary of U-.S, Government foreign credits and grants:
Utilized, July 1, 1945# to December 31, 1948; and unutilized as
of December 31, 1948, by area and country ¿/— Continued
, (In millions of dollars)

Area and country

GRAND
TOTAL

! Credits ulus Grants
Utilized Unutilized

Utilized nlus Unutilized
H ’operty Grants
Loans
Credits

LATIN AMERICA— Con*
7

2

138
8

89

4
49

8

1

Uruguay
V enezuela.
Other Latin America..,,,

10
6
10

10

1

3
8

Unallocated L,A.

45

Haiti..................
Mexico
Peru.

4

(2 /)

132
(2 /)

5

2
6
2

3
3

7
5
4

(2 /)

1
1
6

21

23

24

19

2

A,498

3,629

869

205

547

3 ,7 4 6

1,892
15
67

1,643
15
67

249
-->
—

99
—
—

146
15

1 ,6 4 8

63

4

I
r
a
n
,
,
Japan,
Korea (southern)...... .

39
1,573
299

21
1 ,2 4 2

18
331

--

39

26

208

214

86

—

25

—
1,338
274

Pakistan,.... .
Philippines.
Ryukyu Islands,....... .

10

(2 /)

10

-m

10
18

TOTAL, ASIA..............
C h i n
India
Indonesia,

a

,

•••«•,,

533
35

365

35

169
•*“

70
—-

14

14

—

10

10
11

6

2

«*.*■*

7

4
3

—

2
10
11

145

140

5

us

—

TOTAL, AFRICA........... .

39

28

Egypt....... ...........
Liberia, ............. .
Other Africa,

18

13

16

12

5
4

5

3

2

TOTAL, OCEANIA.......... .

17

17

Saudi Arabia,
Siam,
Other Asia,,,,,«,
CANADA......... .

A u s t r a l i a . e
Other Oceania.

8

8

9

9

UNALLOCATED, INT’L ORGAN..

650

520

1 ,2 0 4

82

UNALTOCATED, ALL AREAS....

—

—

—
445
35
2
—

(2 /)
—

10

28

1

7
—
3

11
16
2

(2 /)
(2 /)

—

—

13

5

«...
—

-—

8

(2 /)
4

11

131
1 ,1 2 3

(Footnotes to above table appear on following page)*

65
970

4
—

150

—

585
85

-A-25-

1/

APPENDIX C

For important qualifications affecting this table and for definitions
of terms, see the Explanatory Note*:,

A -26-

APPENDIX G

Table 2.--Summary of U. S, Government foreign credits:
July 1 , 5-945, to December 31, 1948, by area and country ¿/
(in millions of dollars)
Activity July 1, 1945,
to December 31. 1948

December 31, 194-8
Outstand­
ing in­
debted­
ness

Unuti­
lized
credits

.

9,331

2,347

TOTAL, EUROPE.............

8,502

TOTAL, ERP PARTICIPANTS...
Austria...... .. •. •...«...
Belgium & Luxembourg....
Denmark. .r.'.«.««»»*.•*. . .

Area and country

TOTAL, ALL AREAS.•

893

556

710

8 ,5 2 5

322

299

174

241

8,071

298

272

166

1

19
191
38

(j/)

49

2 ,0 8 6

8
11

225

44
41

111

6

12,239

934

9,668

875

9,594

368

8,04-6

843

8 ,9 9 0

19
179
38

17
40
17

37
231
55

55

2 ,0 4 2

134
105

19
25

Iceland.................
Ireland. .............*.o

2

—

1
60

323

73

314

73
48

Turkey..........
United kingdom.
Unallocated E R P . ^

Unuti­
lized
credits

Utilized

France,...................
Germany'(we stern).......
Greece...................

Netherlands,•*«.«••••••.
Norway.
Sweden.

Outstand­
ing in­
debted
ness

Expired
and can­
celled

111

81
2

10

22

56

4,735
1 mn

113
182

Author­
ized

2 ,2 4 6
252

147
3
60
428
381
142
12

82
4,710
205

June 30, 1945 2/

—

vm
m
rn

——
3
43
20
—

(2 / )
28

Repaid

12
—

55
—

MM*
—

—

*

2

—
352

MM
29

—

—

16

65
11

2

3
—

26
4 ,6 0 5

4
142

330
84

—

—
m
m
m

272

35

22
—

-A-27-

APPENDIX G

Sable 2.--Summary of U.S. Government foreign credits:
July 1, 1945, to December 31, 1948, by area and country l/— Continued
(in millions of dollars)
Activity July 1, 1945,
to December 31. 1948

December 31, 1948
Area and country

TOTAL, OTHER EUROPE.....
Czechoslovakia.
iinland.
Hungary.
Poland.
L.S.S •R
Other

456
23
117
14
79
2 2 2
1

Unuti­
lized
credits

Utilized

604

127

454

25

27

9

72

42

30
109

7

mmJm

fit

24
—

9
——

—
—

3
—
—

—
—
—

107

183

337

■2
56
14

18
28
13

32

28
— -

1 3 6

30
90
275

1
2

—

1

194

353

Bolivia*
Brazil*....è**..»...»*»
Chile•..«#«*.»«*.«»»*»•

17
33

3
35
46

3
in
69

2 1

2 0

1 6

—
mmmm

—
Mk

9
4
48

5
4
91

- BMW
i
5

7
3

Ecuador...••••••••«••»9*
Haiti*...........••••**
Mexico.................
F eru....
Uruguay................
Other Latin America....
........... ..

7
1 1

9
6

70
5
15
1 2

Unuti­
lized
credits

Expired
and can­
ee 3.1cd

364
1 1 2

Outstand­
ing in­
debted­
ness

Author­
ized

TOTAL, LATIN AMERICA..**.

Colombia* ••••♦.«••»»*»•
Costa Rica.
^
.......

■r

Outstand­
ing in­
debted­
ness

June 30, 1945 2/

8

3

., j .., -

8

14
1 2

51
—
2e3

Repaid

16

1 6

2

77

1

2 2 2
1

288

rnim

1 6

1

2 6

79
36

23
17

(2/)
1

(2/)
7

1

(2/)
8

2 6
1 8
2

18

8

(2 /)

(2/)

1 0

2

6

1

84

3
25

6

1

(2/)
9
4
.. _h—

1
8

...."

1 0

7
3
5
9
1 1

—
7
1 6

..........

23

(2?)
18

1 0

(2/0
49

25
25
3
r*w.---- -2?

AFPENDIX G

A-2 8Table 2,— Summary of U.S. Government foreign credits:
July 1, 1945, to December 31, 1948, by area and country l/— Continued
(In millions of dollars)
December 31, 1948
Area and country

Outstand­
ing in­
debted­
ness

Unuti­
lized
credits

r

I1 Juno

Activity July 1, 1945*
to December 31» 194-8
Author­
ized

Expired
and can­
celled

Utilized

Repaid

30, 1945 2/

Outstand­
ing in­
debted­
ness

Unuti­
lized
credits

LATIN AMERICA— Con.

.

Unallocated L*A**«•****•*

45

23

36

118

20

18

44

125

TOTAL, ASIA*•*•••••*«•••**«

425

80

903

183

672

313

65

32

16

16
49

....
22
—

227
15

77
2

200
40
234.

137
1
(2 /)

63
21
216

(2 /)
8
192

25
10
89

(2 /)
——
1

25

20

4
3

32
10
12

5

311

166

Bahrein'Islands
China, • «-•
India.
•♦♦♦•••••*•• ••••

199
13

17
—

a.»
235
15

Indonesia..*•••••*•«••••*
Iran, *
*-*
Japan, *,«• *•*■.,*••,*•*•••.

63
13
23

...
18
19

Korea*••••■■* **««##»••*••**
Pakistan**.* «#•«••••*•••**
Philippines •

25
-66

10
9

Saudi Arabia•*.*•••••,•*.
Siam*.,.** • •* ,#••••••••♦•••
Other Asia*••*•••«••••*••

11
6
6

CANADA AND NEWFOUNDLAND. *,.

6

—

1

(2 /)
79

(2/0
13

12
6
7

1
(2/)
2

HO

140

32
n"l
11

—
—

—

— ■
——

—
—

—

-—

7

—

'

AFPENDIX G

-A-29Table 2*— Summary of U. S. Government foreign credits:
July 1, 1945, to December 31, 194-8, by area and country ¿./— Continued
(In millions of dollars)
Activity July 1, 194-5, ■
to December 31, 194-8

December 31, 194-8
Outstand­
ing in­
debted­
ness

Area and country

19

TOTAXi, AFRICA*

Other Africa,•»#•••«»•••

3
13
3
13

TOTAL, OCEANIA*

Unuti­
lized
credits
11
5
42
—

*
June 30, 194-5 g /

R.epaid

Outstand­
ing in­
debted­
ness

Unuti­
lized
credits

27

10

2

11

1

13
12
3

10
—
(2/)

2
(2/)

14-

1

13

—

—

Author­
ized

Expired
and can­
celled

Utilized

31

3

18
7
6

—
2

+

8
4-

—.
—

8
6

—
1

8
4-

—
—

UNALLOCATED, INTTL ORGAN.*

3

62

65

—

3

—

1,120

968

A'u^'CiruXxdrt •*
New Zealand,

UNALLOCATED, ALL AREAS.**.

—

W

—
U
(2/)

—

tm
w
m

—

—
156 ¿/

5
"

1/

For important qualifications affecting this table and for definitions of terms, see the Explanatory
iiote, For agency break-down of the first six columns of this table and for footnotes, see tables 4-,
5, 6, 7, 8, and 10* Outstanding indebtedness at December 31, 194-8, is equivalent to the sum of out­
standing indebtedness at June 30, 194-5, plus the difference between the amount utilized and the amount
repaid during the period July 1, 194-5, to December 31, 194-8, Unutilized credits at December 31, 194-8,
is equivalent■to the sum of unutilized credits at June 30, 194-5, and the amount authorized during the
period July 1, 194-5, to December 31, 194-8, loss the sum of the amount expired and cancelled and the
amount utilized during the period July 1, 194-5, to December 31, 194-8.

►A—30-

1/

Most itene d n the two columns as of dune 30, 1945, relate to loans by the Export-Import Bank. Major
other agency credits are as follows: Belgium, $55 million unutilized lend-lease property credit;
Netherlands, $65 million unutilized lend-lease property crediti United Kingdom, $272 million outstand­
ing and $35 million unutilized loan by the Reconstruction Finance Corporation! Unallocated Latin
America, $44 million outstanding and $52 million unutilized lend-lease property credits; Bahrein
Islands, $ 1 6 million outstanding loan by the Reconstruction Finance Corporation; Canada and Newfound­
land, $7 million outstanding loan by the Reconstruction Finance Corporation; Liberia, $2 million
outstanding and $11 million unutilised lend-lease property credit.
Less than $500,000*

u

APPENDIX G

Uncommitted lending authority of the Export-Import Bank.

APPENDIX G

«A-31-

Table 3,— U.S, Government foreign grants: Utilized July 1, 194% to December 31,
1948, and July 1, 1948* to December 31, 1948; and unutilized as of December 31,
1948, by area, country, and type l/
(In millions of dollars)
AMOUNTS UTILIZED Jul:f 1, 1945, to December 31« 1948
i
Economic
Civilian LendTOTAL
Area and country
Coopera­ Relief
supplies lease
tion

Other
grants

1,285

890

1,934

482

422

1,598

1 ,9 3 4

434

422

228
1
(2/)

94
—
—

60

—

—
—
—

320

—

61

—

4
317

1 ,4 3 4

—

-6

—
349

-—

—
—

—
—

244

——

TOTAL, ALL ARnAS,,.,,,««««

10,471

1,481

3 ,5 9 6

3 ,2 1 9

TOTAL, E U R O P E * .,

6,882

1,385

2,659

TOTAL, ERP PARTICIPANTS*

5,774

1,385

421

. . ..

Austria**«•«••••••••••*»
Belgium & Luxembourg«,.,
Denmark,

108
18

99
47
18

France
Germany (western),,.,,«,
Greece.

699
1,556
730

319
118
58

Iceland.,,«•••••»••••«,.
Ireland..««•,•,•••.«.,,*
Italy

(2/>
(2/)
1,071

(2/)
125

(2 /)
702

117
18
2

87
17
1

2
1
1

—

28

—

—

—

—

—

6

2
12

—
—

——1

——

—
—
——

Netherlands,
Norway
Sweden,,•,«,«•««««,
S witz erland« . « « » . . * * • * , .
Trie ste. . . . . . . .
Turkey
United Kingdom.
Unallocated ERP
TOTAL, OTHER EUROPE..... ...

2
21
73

--

773
164

485
5

1 ,1 0 8

Albania,
Czechoslovakia............. ..
Poland,. • • , « • • • . • • . . . . . ,

20
183
365

U.S.S.R., . . « • « . * . * . * , * , #
Yugoslavia*« « . • • * • • • , , © .

236

OljllGP

—

299
4

—

3

73

—

279

—

158

—

1 ,0 6 0

—

48

—

20
183

—
—

(2 /)

—
—
—

8

—

(2 /)

—

365

—
—

188
299
4

—

48

—

—

——

—

—

(2/)

—

2

27

724

441

722

192

—

—

——

LATIN AMERICA, • « . » • « . . » o * .

29

TOTAL, ASIA...,........,*.

2,957

96

414

ChlllQ , %0 9 • « • t • • • t « •:* • t • O•
Japan,. , * , « « . . * • • * • • • « • «
Korea (southern). . . • • • . «

1 ,4 1 6

96
.—

4 O6

1,026
189

mmmm

—

1

1,281

1,026
188

a p p e n d ix

•À—32'

c

Table 3.— U.S. Government foreign grants: Utilized July 1, 1945, to December 31,
1948, and July 1, 1948, to December 31, 1948; and unutilized as of December 31,
1948, by area, country, and type l7-|-Continued
(in millions of dollars)
AMOUNTS UTILIZED Julv 1. 1945. to December 31. 1948 .
|
I Economic
Civilian LendRelief
t o t a l ] coopera­
Area and country
supplies lease
tion

i

1Other
grants

1

ASIA— Con.
Philippines*.•••»•*••*.< 285
35
Ryukyu Islands*.......»<
6
Other Asia.*•••••••••••<
AFRICA.**•*•••« ••*,*»***•♦

1

OCEANIA..............*••*■

5

38
35
4

8
(2/)
(3/)

—

—
——

i

UNALLOCATED, ALL AREAS... | 82

!

—

4

(31)

UNALLOCATED, INT’L ORGAN., 517

2

♦-M-*

1

*****

249

—

517

—

—

5

—

—

77

1 ~

-— •

t

AMOUNTS UTILIZED July 1, 1948, to December 31, 1948
------------------ ---- --------- 1
Economic
Civilian
I Other•
, j
Relief |
coopéraTOTAL
j
Area and country
supplies j grants
tion
j

TOTAL, ALL AREAS..

2,301

1,276

69

622

333

TOTAL, ERP PARTICIPANTS....

1,741

1,181

23

374

162

Austria.
Belgium & Luxembourg....«,

94
47
17

91
47
17

3

(3/)

269
492
174

261
118
46

Iceland.
11 aly
Netherlands..............

(a/)
129
72

(3/)
116
72

1STorway• ♦• •é o#$
Swft^An...................
.. ...... o .... a.
Tt'I

17
1
6

17
1
6

Germany (western)
Greece.

United Kingdom.*»••«•*•»« »
Unallocated ESP**••*•»••* >

1
35
383
• 5]
|

IP«*.ir!*-n

*■■■»->
8
—
*****

„374
127
—

13

—

—

—

—

—

•---

Jirr--^
383
5

—

!

35
—

(i7>

APPENDIX 0

•A-.33-

Table 3.— U.S. Government foreign grants: Utilized July 1, 1945, to December 31,
194$, and July 1, 1948, to December 31, 1948; and unutilized as of December 31,
1948, by area, country, and type ¿/— Continued
(in millions of dollars)
AMOUNTS UTILIZED July 1 , 1948, to December 31« 1948
Economic
Civilian
Area and country
TOTAL coopera­ Relief
supplie s
tion
—

—

511

95

—

248

China.•«••••••«••••••••*
Japan....
Korea (southern)

167

95
—
—

mtm

'*•«» *
202
43

Philippine s.... ........
Other Asia..............

96

LATIN AMERICA.... ........

3

TOTAL, ASIA...............

202
43

4

—
—

UNALLOCATED, INT!L ORGAN*,

45

—

UNALLOCATED, ALL AREAS...*

2

—

Other
grants

3

—

168

72
**—
96

'

—

4

45

—*

2

—

UNUTTLTZE1D BALANC'ES. December.3!_■ 19A8
Economic
Civilian
TOTAL coopera­ Relief
Aroa and country
supplies
tion
'
72
. 740
2,803
TOTAL, ALL AREAS*........ * 4 , 0 3 6

—

—

l

1

342

TOTAL, ERP PARTICIPANTS...

3,171

2,624

Austria.
Belgium & Luxembourg..oi
Denmark

134

103

131
103

60

60

—

3
—
*•••

Prance
Germany (western)
ureece.

584
688
234

584
348
113

—
—
—

...
340
——

Iceland»••• 1 1 1 §1 1 • • t##
Ireland.
Italy.•••*•*•«•«*•»*•••.

3
17
405

3
17
405

-—
'***

—
■—
— ■

Netherlands.....«•* •• •*•
Norway.............. ...0 .
Sweden.... ■».. **........ •

286
30
21

286
30
21

—

w

—

mm-mm

—
— -

Other
grants
420

203
w
—
««IP*

121
—
*•—

—
—

APPENDIX C

«*A«*34**

Table 3,— U.S. Government foreign grants: Utilized July 1, 1945, to December 31,
194,3, and July 1, 1948, to December 31, 194$$ and unutilized as of December 31,
1948, by area, country, and type l/— Continued
(In millions of dollars)
UNUTILIZED BALANCES, December 31, 1943
Area and country

TOTAL

Economic
Coopera­
tion

Relief

Civilian
supplies

Other
grants

ERP PARTICIPANTS— Con.
7
82

1

6

Trieste..«*•••*•••••»*•«
Turkey
a> •••••••+*•«
United Kingdom,

466

466

Unallocated ERP.........

51

51

—

—

(2 /)

5

«M*

—

—

5

789

179

232

179
——

LATIN AMERICA.,,
TOTAL, ASIii.
China.

312

Korea (southern)••••»•«•
Philippines...... .

36
I6 0

UNALLOCATED, IKT’L ORGAN..

63

UNALLOCATED, ALL AREAS,,.*

3

--

—w

82

mm

m nm

398

212

53

—

312

—

mmmm

wmm*

86

—

—

—

r-

68

—

3

—

l/

For important qualifications affecting this table and for
definitions of terms, see the Explanatory Note,

2/

Less than $500,000,

mmwm

160

—

-A *35-

APPENDIX G

Table 4-#--Out standing indebtedness l/ of foreign countries on U.S. Government credits:
as of December 31, 194-3, by area, country, and agency
(in millions of dollars)
LOANS
Area and country

—

TOTAL 2/

ExportImport
Bank 2/

Economic
Cooperation
Admin.

LendLease

PROPERTY CREDITS
Foreign
Maritime
Liquida­
Commis­
tion Com­
sion
missioner 2 /

Other
Loans and
property
Credits 2/

TOTAD, ALL A R E A S .«...«»

9,331

2,14-5

4,86

1,314

1 ,1 8 0

212

3,995

TOTAL, EUROPE............,

8,502

1,768

4-86

1,205

958

182

3,904

TOTAL, ERP PARTICIPANTS,.*

8,04-6

1,617

486

982

881

181

3,899

Austria. ...*••*•
»• .
Belgium & Luxembourg...,
Denmark.

19
179
38

7

__

....

123
20

10

—

_—
—

17

fm

8
46
1

1,159

128

371
——

F r a n c e * . ......
Germany (western),,.....
Greece.
•
*

2 ,0 4 2

Iceland..•«••*•••••••••*
Italy.«••••••••»•••••*,*
Netherlands.............

2

323
314-

Norway,•#«•••••«.
Sweden..................
Turkey

81
2
22

United Kingdom,••••••••,

4-,735

184105

15
m
m
—

—
2

190

38
48

42

12

2
12

—•>
—

47

—

232

;

•

—
48

—

3 1/
—
—

328

53

u U

184
55

35

a/)
177
18

—»
61
10

4«...

16

—

5

6

557

54-

6
*pM

—

. —

(¿/¿/)
1 1/

m
m
**

—

—
3,891 i/

-A-36-

APPENDIX C

Table 4,— Outstanding indebtedness l/ of foreign countries on U.S* Government credits:
as of December 31 , 1948, by area, country, and agency— -Continued
(In millions of dollars)
LOANS
Area and country

TOTAL 2/

ExportImport
Bank 2/

Economic
Cooperation
Admin*

____PROPERTY CREPTTfl
Foreign
Maritime
LendLiquida­
Commis­
tion Com­
Lease
sion
missioner 2/

456

151

—

Czechoslovakia* .........
Finland*•»»•••••**••••«•
Hungary *****~**•••••••••*

23
117

15
93
—

--

Poland*•••••••*••••••••*
U*S.S*R*«••••*«•••*••••*
Other *** **** «*«••••••••*

79
222
1

—

—

222
1

364

298

—

45

17
112
33

16
100 7/

—

—

TOTAL, OTHER EUROPE......

TOTAL, LATIN AMERICA.....
Dollvia*•••••*••***••••»
Brazil**•••«•••••»•«*•••
Chile *»•***»-•**••*••«•*•
Colombia*
Costa Rica* *
Cuba,

• • • • • • • • • • • •

t

14

1

51/

—

37
—w

—

—

8

12

6
—

6

—
1

( 4 / $
—

21

20

• *

mmmm

7

7

— ,

—

—

—

11

11

mmmm

mum

mmmm

mmmm

—

—

—

—

—

—

- —

—

—

—

9

9
15
17
45

13
12

........

—

«Ml»

—

Uruguay• • • • • • • • * * • • * • * • •
Other Latin America*.***
UD8.Hoc&"t)sd L#«A#
'

8
18
14

5

—

6
70

•

mmmm

1

33

6
70

. >....

77

42

Ecuador• • • • • * • • • • • • • • • * *
Haiti * • • • • • • • • • • • • • • « • * *
Mexico• • * • • • • • • • • • • • • • * •

..

—*
—

223

Other
loans and
property
credits 2/

—

(à/)

—

mmrnm

(4/£/)

(4/)

—

2
1

—

45

(4/6/)

(2/4/)
(4/8/)
—

4
—
-JE M *

^

APPENDIX C

»A-37Table A* — Outstanding indebtedness \ J of foreign countries on U.S. Government credits:
as of December 31, 194$, by area, country, and agency— Continued
(In n&llions of dollars)
r -

LOANS
TOTAL 2/

Area and country

TOTAL, A

S

I

A

.

ExportImport
Bank 2/

81

59
11
63

16
—
—•

—
—

—

—

13
13
25

—
—

—
—

—
—
—

3
2
6

2
—
—

6 1 ¿2 /

—

—
—
—

6

—

—

—

6

—

—

6

—

199

m
m
m
m

—
—

47
2
—

■»»■»»
10
—

1
*»wm

77

China.««**.««.»«*••••»*»
Indiao•..*«•»•••••••••.«
Indonesia.

199
13
63

57
—

Iran.
. 44 -rt~t **
Japan.
Korea (southern)••••••«.

13
23
25

Philippines.............
Saudi Arabia.
Siam.

66
1±
6

TOTAL, AFRICA.
Liberia.................
Other Africa.

Other
loans and
property
credits 2/

18

50

425

CANADA AND NEWECUNDLAND. ..

LendLease

—

«««

Other Asia.

Economic
Cooperation
Admin.

PROPERTY CREDITS
Foreign
Maritime
Liquida­
Commis­
tion Com­
sion V
missioner 2/

19
13
6

9

3
—
3

—

—

—

—

13

3

—

—

13

—
3

—

202/

—
—

6 6/

—

-A-38-

AFPENDIX 0

Table 4-,— Outstanding indebtedness l/ of foreign countries on U.S. Government credits:
as of December 31, 1948, by area, country, and agency— Continued
(in millions of dollars)

Area and country

TGTAL, OCEANIA..«•*••••*•*
Australia.
Other Oceania.
UNALLOCATED, IMF 1 L ORGAN..

_____ LOANS
Economic
ExportTOTAL 2/ Import
Cooperation
Bank 2/
Admin*

13

—

8

4
3

—

MM

—

—

:

___ PROPERTY CREDITS
Foreign
Maritime
LendLiquida­
Commis­
Lease
tion Com­
sion
missioner _2 /
1

12

1
—

4

Other
loans and
p’
roperty
credits 2 /

—

—

—

—

8

nm
m
m

3 H /

'

1/

For Important qualifications affecting this table and for definitions of terms, see the Explanatory
'Mrbo«

2J

Includes $3,930,258 of loans and property credits due and unpaid for 90 days or more, as follows:
(a) Export-Import Bank, $429,4-65 in ihe following•countries— Poland, $3,492| Brazil, $142,980$
Uruguay, $ 5 1 ,4 8 8 $ Other Latin America (Venezuela;, $200,000$ Other Africa (Angola), $31,505$
(b) Reconstruction Finance Corporation, $1,092,517 in the following countries— Bolivia, $1,032,816$
Brazil, $30,613$'Colombia, $28,170$ Ecuador, $918$ and (c) Office of the Foreign Liquidation
Commissioner, $2,458,276 In the following countries— Ecuador, $96,855$ Other Latin America (Peru),
$106,094; Iran, $64,473; Siam, $619,328$ Other Asia (Burma), $500,000$ Other Africa, $1,071,526
(Egypt, $858,588 and Ethiopia, (¿212,938)«

2/

Property Credits by the War Assets Administration*

ij

Less than $500,000*

■A«39-

5/

APPENDIX G

Loans ** $3 , 7 5 0 million by the Treasury Department and S U 1 million by the Reconstruction Finance
Corporation*

6/

Loans by the Reconstruction Finance Corporation,

2/

Includes $7 million participation by another agency in loans of the Export-Import Bank to Brazil,

8/

loan by the State Department (Institute of Inter-American. Affairs),

2/

Property Credit by the Army Department,

10/

Loan of $60 million by the Reconstruction Finance Corporation and property credit of $1 million
by the War Assets Administration,

li/

Loan to the United Nations by the State Department,

APPENDIX 0

•Aw+o*
Table 5*— Unutilized balances l/ of U*S# Government foreign credits;
as of December 31, 1943, by area, country, and agency
(In millions of dollars)
asaMwirsTar-:-- rwc.. ..n ' .

--- -p

Area and country

TOTAL, ALL AREAS..

1

Im u s
Export-* I Economic ■ LendCooperation
TOTAL} Import
Lease
1
Admin*
Bank

2,347[

1 ,3 6 1

514

7

114

(2 /)

TOTAL., EUROPE..»*•*■•».*•*••

3751

153

su

2

86

(2/)

TOTAL, ERP PAHTICIPAKTS..,

843

134

514

—•

80

(2/)

Austria,****•••••••••••«
Belgium & Luxembourg**• *
Denmark

17
40
17

6

—

—

—
40
8

France,***••••**•••#»•••
Germany (western).......
Greece*

111
19
25

—
19
—

42
—
*•—

—

Iceland*#.•••••••••••*••
Ireland*•*••••«•••.••.*4
Italy **.,***•♦*•••♦•••••

1

mm

(2/5

60

73

60

60
12

Netherlands*•*..•••••••*
Norway*
Sweden* *»*....••••.*••*•

73
43
10

T»*
8

Turkey ****•*•••**••••«••
United Kingdom*******•*•
Unallocated ERP.*•••••••

56
112
132

22
—
19

'

!
T

351
'

120
114
7 2/

4

——
9
46 2 /

22

——
25
— ■

<g/5

—

—

47
23
10

—

11
6

30

—

78
163 1 /

Other
loans
and
property
Credits

PROPERTY CREDITS
.foreign
Maritime
Liquidation
Commission
Commissioner

—

(2/)

—

—
15 V
112/

—

4

—

35 4 /

Table 5,— Unutilized balances ¿/
b.S, Government foreign^creditsi
as of December 31, 1948, by area, country, and agency— Continued
(In millions of dollars)
-------------_
------------- f
Other
■
-- ----------------- :
-------- :
PROPERTY
CREDITS
LOANS
loans
Foreign
Economic
Export**
Maritime
and
LendLiquidation
TOTAL
Area and country
Commission
Import 1Cooperation Lease
property
Commissioner
Admin,
Bank
c.redits

—

32

18

28
4

17
1

194

193

—

Brazil, ••
Chile,«*«
Colombia,*»•••••«♦»•••»*

35
4-6
20

35

—

Ecuador,,•«,,«••••••••••
iuGXlCO,,»••*••••*••••••*
Other Latin America,,,««

9

9

A8

48

13

12

Unallocated L, A#,,,,,«•

23

23

80

33

China,,,,,,,,•»*«,»•«*♦•
Iran, ,,,«•••<*,,,,,••••••

17
lo
19

17

—

16

m0mm

Pakistan,
Philippines,
Other Asia, •«,,•••••••••

10
9
7

—

mmtm

TOTAL, OTHER EUROPE,
Pinland,
Other
TOTAL, LATIN AMERICA.....

TOTAL, ASIA* •

46

2

—

6

—

5

6

—

5 2/

2
1

—

—

—

—

(2/)

—

—

20

■

11'1r"

W.

*****

mmtm

■ntr-V-,..

we*

(#2/)

——

19

1

(2 /)

28

—

(2 /)

**w

18

10

M

—

7

1

wen*
—

1

.

2/
9 2/

—■
----- ---

-A~42.

APPENDIX 0

Tabic 5*— Unutilized balances ¿ / of U.S. Government foreign credits*
as of December 31 , 194-3,. by area, country, and agency--Gontinued
(in millions of dollars)

Area and country

TOTAL

LOANS
ExportEconomic
Import
Cooperation
Bank
Admin*

CANADA*.* •••••*•«•«•*•••*.*

5

5

— •

AFRICA*•••*«••«»*•••*•»••*

11

7

—

UNALLOCATED, INT*L ORGAN*.

62

UNALLOCATED, ALL AREAS*.**

1,120

1/

—
970 2/

LendLease

PROPERTY ORE]DITS
Foreign
Maritime
Liquidation
Commission
Commissioner

Other
loans
and
property
credits

—

—

~•

4

—

—

--

—

—•

—

—

62 6/

—

—

--

—

150 8/

—

For important qualifications affecting this table and for definitions of terms, see the Explanatory
$ote*

2/

Less than $500,000«

1/

Property credits by the War Assets Administration*

U

Loan by the Reconstruction Finance Corporation*

$/

Uncommitted loan and guaranty authority of the Economic Cooperation Administration.

y

Loan to the United Nations by the State Department.

i/

Includes the 0967 million uncommitted lending authority of the Export-Import Bank,

y

Uncommitted commodity-program credit authority of the Army Department*

APPENDIX C

-A-43'
Table 6.— Authorizations l/ of U.S* Government foreign credits:
July 1, 1945» to December"31, 1948, by area, country, and agency
(in millions of dollars)

Area and country

TOTAL

LOANS
Economic
ExportCooperation
Import
Admin*
Bank

PROPERTY CREDITS

Lend- ILiqSdatlon
Lease

Maritime
Commission

Commissioner

Other
Loans
and
roperty
Credits

3,697

1,000

1,406

1,453

262

4,421

TOTAL, ALL ¿USAS«••••*•»«• 12,239

2,051

1,000

1,292

1,129

3,902

9,594

220

TOTAL, ENROLS*.

8,990

1,889

1,000

1 ,0 1 6

974

219

3,892

TOTAL, ERP PARTICIPAI St

12

Austria##* #•*#*••**•••••
Belgium & Luxembourg.•••
Denmark#.*•••««*•••*•*•»

37
231
55

132
20

50
25

France••#***«♦»••#•*•***
Germany (western)•#.••*•
Greece* *•.**«•*••« »*••• *•

2,246

1,200

170

252

24
25

Iceland# #* #**••#*••#•*••
Ireland
Italy# *•#* « *.*.##•*•*#*•;

3

147

H

49

10
420

2

35*
184
80

rnmrnm

428

134

50

178

66

381

210

142

50

95
35

30
If

21

Netherlands ##-#..#•♦•
Norway# #*•••##*•••••**••
Sweden* *#•••*•*•••#•* •••

12

2

10

Turkey*.*
United Kingdom*»*••*«#««
Unallocated ERP*#•*•••*#

82
4,710
205

36

30

42

310
163 6/

50 2 /
-45 y

42

(& /)

60

60

56
Urn

29

25 2/
12 y

10
590

60

3,750 5/

APPENDL

-A*44*
Table 6 ,---Authorizations l/ of U,.S. Government foreign credits:
July 1, 1945, to December"’31, 194-8, ^7 area, country, and agency— Continued
(In millions of dollars)

Area and country

PROPERTY CREDITS
___
LOANS
i
Foreign
Economic
ExportMaritime
Lend- 1
Liquidation
Cooperation
Commission
Import
Lease
Commissioner
Admin,
Bark

TOTAL

•

604.

162

Czechoslovakia# •••.•••••#
Finland,««••* ## ••••#■• •••
Hungary# # •••••*«.••••••*

72
136
30

22
100

Poland,,,, •• •«,-.•♦« • «••
U ,S, S ,R#,-,•••••••# •*•• ••
Other,« ##«* «,.* ••••••••.*

90
275
1

40

TOTAL, LATIN AMERICA#*,.-*#

353

284

Brazil, » # • • • # * • • •
Chile#
*#.•••*#
Colombia#**••••*♦•*•* •••

111
69
16

92
69
15

Mexico#«,«#,**•••*••••••
P e r u # ••,••••••.##
Other Latin America,,,«*

91
7
23

89
(¿/)
19

Unallocated L,A,#«•«»««#

37

TOTAL, OTHER EUROPE,,,,,*«

TOTAL, ASIA.«,«##.#.... .
China,,•,*•««•».....• •
India«, #«.«# #,.»«• •■###•# •
I n d o n e s i a , »• 1

______________

276

—

•

i

Other
loans
and
property
credits

155

1

19

50
25
30

1

10 2 /

50

rnmmm

275
1
37

12

18

8

9

223

235
15
200

67
100

—

«M#

2
5
2

37

903

2 2/

(¿/¿/)

1

1
2

2

L

70

285

23

59
2

70
13
100

19

=

—

302
20 2 /

a i b l :,

■A-45~
Table 6» --Authorizat ions 1 / of U.S, Government foreign credits:
1945, to December 31, 1948, by area, country, and agency— Contimed
July 1,
(In millions of dollars)
1

Area and country

TOTAL

LOANS
Export- ; Economic
Cooperation
Import
Admin.
Bank

PROPERTY CREDITS
LendLease

Foreign
Liquidation
Commissioner

9

31

.._[

Maritime
Commission

Other
loans
and
property
credits ..

ASIA*--Con.
—

Iran**«*•♦••••••*•••••••
Japan*.*•••*••*••*••••••
Korea (southern)••••*•••

¿0
234
25

Pakistan* •••••*•••••••••
Philippines* •*•*••*•••••
Saudi Arabia*••***•••••♦

10
89
32

Siam* •*'**'•• •-%•§■*■*■{§.*•• «#*
Other Asia#*••■•••••••••*

10
12

CANADA *••••••*••••••••••**

311

311

TOTAL, AFRICA**••«••••••••

31

10

—

Egypt ****••••••••••••••*
Liberia **.**.**••••••*♦ •
Other Africa***•*•*•••••

18
7
6

7

—

TOTAL, OCEANIA*•••••••••**

14

—

1

13-,

Australia* ****••••••*•••
New Zealand****•**•♦••••

8
6

—

1

8
6

26

1

16

192 10/

25
——
6

3

mmmm

2

30

10 2/
so n /

10
12
—

—
7

—

—

—

14

—

—

11
7
3

3

—

—

—

—•
mmm+

—

G

A P P EN D

Table 6.— Authorizations l/ of U.S. Government foreign credits:
July 1, 194-5, to December 31, 1943, by area, country, and agenoy— Continued
(In millions of dollars)
.....

'-t: ----- -

----

Area and country

TOTAL

UNALLOCATED, INT'L. ORGAN..

65

UNALLOCATED, AIL AREAS...M

968

1/

L0/iNS
Economic
ExportCooperation
Import
Admin.
Bank

818 12/

—

LendLease

PROPERTY CREDITS-------- J
Foreign
Maritime
Liquidation
Commission
Commissioner

....

m**

—

—

—

—

Other
loans
and
Property
credits
Ì112Z—
150 y j

For important qualifications affecting this table and for definitions of terms, sea the Explanatory
JRote.

2/

Property credits by the War Assets Administration*

2/

Property credits (commodity programs) by the Agriculture Department of $34 million, and by the
Reconstruction Finance Corporation of $11 million*

ij

Less, than $500,000*

V

loan by the Treasury Department,

6/

Uncommitted loan and guaranty authority of the Economic Cooperation Administration.

2/

Loans by the Reconstruction Finance Corporation.

8/

Loans by the State Department (Institute of Inter-Amerioan Affairs) and the Reconstruction Finance
Corporation and property credits by the War Assets Administration.

2/

Property credit by the Army Department.

ia

b

*A

Property»- credits (commodity programs) by the Agriculture Department of $180 million^and by the
Reconstruction Finance Corporation of $12 million*

11/

Loan of $70 million by the Reconstruction Finance Corporation, and property credit of $10 million
by the War Assets Administration*
/

^ ^ IS

10/

APPENDIX G

Loan to the United Nations by the State Department*
Includes increase of $811 million in the uncommitted lending authority of the Export-Import Bank.
Uncommitted commodity-program credit authority of the Army Department*

APPENDIX C

«■A«-AS**

Table 7.— Expirations and cancellations l/ of U.S. Government foreign credits8
July 1, 194.5, to December 31, 194-8, by area, country, and agency
(in millions of dollars)
LOANS

PROPERTY CREDITS
Mari«
Foreign
time
Lend- LiquidaComLease tion Com-i
mission
missioner _

---- — --3.
Other
loans
and
property
oredits

TOTAL

^SxportImport
Bank

TOTAL, ALL AREAS*.*•«««,•

934

¿81

281

121

33

18

TOTAL, EUROPE,.,.........

368

60

200

69

22

18

TOTAL, ERP PARTICIPANTS..

241

52

149

mm

22

18

Austria
Belgium'& Luxembourgi.•
France........

1
55
49

1

—

mm

55
49

—
—
PM

Germany‘(we stern)...,;.
G r e e c e ......««.««*., .
Italy.«a.«...,«.*.*.«,.

8
11
3

Netherland s............
Norway
Turkey .................

43
20
(2 /)

United Kingdom.••••••««
Unallocated ERP...,...,

28
22

22

TOTAL, OTHER EUROPE......

127

8

Czechoslovakia,........
Finland,
Hungary

42
8

(S/)
8
—

Poland,
.........
U.S.S.R,.......,4......

12
51

TOTAL, LATIN AMERICA,...,

208

131
23

.......

26
7
8

Peru,
Uruguay.
Other Latin America,...
Unallocated L.A,.......

Area and country

u

[

—
mm
mi.

10
3

— .

—
— ;

mm

mm

5

17

—
mm

h

mm

(2/)

mm

(¡7)
(2/)

mm

11
10
(2/)

10 U

8 2/

(2 /)
-mm

I

51

69

—

42

—

m
am

mm

14

—

12

—

I

—

—

'

**—

mm

(2/)
mm
mm

1 28
I —

(2/)

-r

(¡7)

—
—

I
mm

5

Brazil.
Cuba.
Mexico

—

71

7

—
—

6

1 *’**

26
18
5

25
18
4

—

118

48

71

—

►¡H.,!,,.....,,.-f

1

6

(2 /)

(s/)

3
—
2

——

—
•
—

(2/0
(2/)
(2/)
—

--

1

(2/)

(27"v )
«•mm
—
■«---— — —

APPENDIX G

A-49«

Table 7 »— Expirations and cancellations ¿/ of U.S. Government foreign credits!
July 1, 1945, to December 31, 1948, by area, country, and agency— Continued

11--

""

Area and country

TOTAL, ASIA###.#.#.••*•*•

PROPERTY CREDITS
Foreign
1 Mari­
Exporttime
Liquida­
LendTOTAL Import
Com­
tion
Com­
Lease
Bank
missioner . mission
;.,ii
,— —■••
LOANS ^

120

183
22

China#■•••••##••••••••#
Indone sia######•#••••••
Saudi Arabia#####••••••

137

Other Asia##••##,«••.••

3

(2/)

100
20

20

—

11

2

—

37

mm

49

9
—

tmtm
1

—

1
1I

166 ^

l66

AFRICA#

3

(2 h

OCEANIA###••••••••••••••#

1

UNALLOCATED, ALL AREAS#.,

5 [

CANADA# #.«.#••••»«•...•••

5

9

wmmm

Other
loans
and
property
credits

—

—

■■,

—

2

2

1

—

—

1

mmm*

—

5

••••

1/

For important qualifications affecting this table and for definitions of
terms, see the Explanatory Mote#

2/

Less than $500,000,

2/

Property crédits (commodity programs) by the Reconstruction Finance
Corporation#

¡¿J

Property credit by the War Assets Administration#

*>/ Loan.by the State Department (Institute of Inter-American Affairs),

APPENDIX C

•A-50Table f.— .Utilisations 2 / of U.S. Government foreign credits;
July 1, 194.5, to December 31, 1948, by area, country, and agency
(In millions of dollars)
'I
i

.• = { [
LOANS
si
Economic
ExportLendCooperation
Import
Lease
Admin.
Bank

PROPERTY CREDITS
Foreign
Maritime
Liquidation
Commission
Commissioner

Other
■ loans
and
property
credits

Area and country

TOTAL

9,668

2 ,3 4 8

486

1 ,3 0 1

1,217

229

4,088

TOTAL, ALL AREAS..... *..*
TOTAL, EUROPE.............

8,525

1,859

486

1,210

974

198

3,799

TOTAL, ERP PARTICIPANTS•.«

8,071

1,713

486

987

894

197

3,794

Austria..*«*••••*•*••»••
Belgium & Luxembourg.*'*#
Denmark.

19
191
38

7
132
20

France.**#•••*••••••••••
Germany (western) *******
Greece* *•.*•••••••••••••

2,086
225
111

1,200
5
15

Iceland.
Italy.**.••••••••♦•••••*
Netherlands.•••«•«••••*#

2
352
330

72
205

Norway*..•■••*••*•••*••••
Sweden...••••••••••••••*
Turkey...•••••••••••*••«

84
2
26

United Kingdom.•••••••••

4,605

42

?
14

m
m
m
m

10
17

mm mm

128

371

9
49

3 2/

—

1

2
38
48
12
tmmm

56

—

328
184
55

41

48

(¿/)
178
19

65
10

6

4

19

6

mmmm

4 2 /
37 y

( 2 /¡/)
1 2 /

6

1
t
562

232

-

60

3,750 y

APPENDIX G

■Â-51
Table 8.— Utilizations l/ of U.S. Government foreign credits:
July 1, 1945, to December 31, 194-8, by area, country, and agency— Continued
(In millions of dollars)
:
----- ^

... ¿z==Z====X

LOANS
Economic
ExportTOTAL j Import
Cooperation
Area and country
Admin,
Bank
!
ap------- ... *
—
145
454 \
TOTAL, OTHER EUROPE....*..

PROPERTY CREDITS

I
j

Foreign
Liquidation
Commissioner

223

80

1

5

1

5 2/

« ...

8
19
16

39

tm
m
*

38

tm
m
m

—*

30
109

P o l a n d . .•••
U.S,S.R....••••*••••••••
Other

77
222
1

TOTAL, LATIN AMERICA......

288

Bolivia.
Brazil. .»••••••
•
Chile *•*..••••••••••••*•

16
79
36

Colombia.,.•••••••*•••.«►
Ecuador **••••••♦••••••.•

18
10
6

17
10
5

Mexico
Peru. ....«»«#••*•••••••*
Uruguay.

84:
6
q
7

84
(4/)

Other Latin America...««
Unallocated L.A.... «...

5
20

16

244

1

16
62
36

*

!

2

Maritime
Commission

—

—

222
X

—

18

—

—

——

—
11

12

2

8

~6

(4/6/),
2 6/

1

(4/6/)

(¡7)

u 7 6/)

r-r"
—

7

i

Other
loans
and
property
credits

jjpnd—
Lease

22
84.

Czechoslovakia.
Finland.
Hungary.

,

______________

(¿/)
—

u j)

18

4
2
—

(4 / 2 /)
(2/4/6/)

-A-52.

APPENDIX c

Table 8,— Utilizations 1 / of U.S. Government foreign credits:
July 1, 194-5, to December 31, 194-3, by area, country, and agency— Continued
(in millions of dollars)
—
— — ,---- -....... ... .— -- ----Other
:
PROPERTY CREDITS
LOANS
!
loans
Foreign
Economic
Export¡LendMaritime
and
TOTAL
Area and country
Liquidation
Cooperation
Import
Commission
Lease
property
Commissioner
Bank
Admin.
credits
I

TOTAL, ASIA,«,,,»..«••••»•
China ,
India,
Indoncsia,.«..
Iran,
Japan,
Korea (southern)
Philippines,............
Saudi Arabia,
Siam,,,,,,««••••••••,,,,
Other Asia,
CANADA........ ...........
TOTAL, iiFRiCA.
Egypt,,,.... ........
Liberia,
Other Africa..,.......,,

672

102

—

61

207

18

227
15
63

81
—
—

—
—

50
2
—

59
13
63

16
—
■i—

21

«M»
10

—
—

9
—
—

13
13
25

—
—
—

—
10
—

—
—
—

—
—
—

6
2
6

2
—
—

—

—

—

7

—

—

--

—

—

216

25
79
12
6
8

i
t

283
20 8/
—
—

192 2/
—
71 10/
——
—
(2/ k /)

140

140

27

3

—

12

13

—

—

13
12
3

2
■mom

—
—

—
12

11
—*
2

—
—

—

1
"

A Pfr.ty.aALA v
Table 8*— Utilizations l/ of U.S. Government foreign credits:
July 1, 1945» to December 31* 1948, by area, country* and agency— Continued
(in millions of dollars)

Area and country

TOTAL, OCEANIA....... .

,

TOTAL

LOANS
Economic
ExportImport
Cooperation
Admin.
Bank

13

LendLease

—

1

12

—

8
4

—

—

Australia.•*••••••»»»*••
Other Oceanià..* *•. ...* *

g
4

—

—

1
■—

BHALLCCATED, INT'L ORGÀN*.

3

—

—

—

1/

PROPERTY CREDITS
Foreign
Maritime
Liquidation
Commission
Commissioner

—

Other
loans
and
Property
^redits

v','fr**»
3 U/

For important qualifications affecting this table and for definitions of terms* see the Explanatory
“Isbtc.

7j

Property crodits by the War Assets Administration.

j/

Property credits (commodity programs) by the Agriculture Department of $34 million and by the
Reconstruction Finance Corporation of $3 million*

y

loss than $500,000*

y

loan by the Treasury Department*

6/

Doans by the Reconstruction Finance Corporation*.

If Doan by the
8/

State Department (institute of Inter-American Affairs)*

Property credit by the Army Department*

-A~54-

aj

10/

Property credits (commodity programs) by the Agriculture Department of #180 million and by the
Reconstruction Finance Corporation of $12 million*
Loan of #70 million by the Reconstruction Finance Corporation and property c r é â t of #1 million
by* tlio War Assets Administration*

10/

Loan to the United Nations by the State Department*

APPENDIX C

Table 9.— Utilizations 1/ of U.S. Government foreign credits:
Ju3.y 1, 1948, to December 31, 1948, by area, country, and agency
(In millions of dollars)

Area and country

LOANS
1
p
Economic
ExportLendCooperation Lease
TOTAL
Import
Admin.
Bank

PROPERTY CREDITS
Foreign
Maritime
Liquidation
Commission
Commissioner

Other
Loans
and
property
Credits

617

107

486

2

11

4

7

TOTAL, ALL AREAS*

55$

63

486

1

1

1

4

TOTAL, EUROPE. ••.........
TOTAL, ERP PARTICIPANTS.•.

542

52

486

•••

1

Austria.. ••••••
Belgium & Luxembourg. •••
Denmark.

6
10
17

6

France.
Iceland.
Italy. ..•••••••••••••••*

130
2
55

•i•

Netherlands.
Norway..,•••••••••»••«* *

48
35
2

5

TOTAL, OTHER EUROPE.......

12

10

Finland,.«••••••••••••*•
Other

8
4

7
.3

48
12

—

!*i

(2/,)
(2/)

nil

128
2
38

(2/0
(2/)

¡11

(2/)

1 —

4
(2/ 2/)

2 2/

(2/ 2/)

j !

22
2

5
232

United Kingdom,........

mm mm

10
17

17

3
—

232
—

1

—

—

12/

M
P
l
i
P
f
A

—

1

1

—

APiElMUi... i
-À-5&'
Table 9*— Utilizations l/ of U,S, Government foreign credits.
,
July 1, 1948, to December 31, 1948, by area, country, and agency— Continued
(In millions of dollars)
'1— 1----------------- ----- "

LOANS
TOTAL

ExportImport
Bank

TOTAL, LATIN AMERICA...*##

31

31

Chile*.#•••••••••♦••••••
Mexico* •#•••••••»••••••*
Other Latin America*#*#.

13

13

Unallocated L.A«#•••••••

(2/)

Area and country

7

11

7

1
--- ----12

25

Iran* #••••••••••*#••••••
Japan#••••«•• •••«”» ##••••
Other Asia*•.»«••••••.*.

o
10
6

10
2

AFRICA#*••••« #•••••••••••*

2

2

1

3

i Economic

Cooperation
Admin.
—

LendLease

—

(2/)

-4

(2/)

—

—

—

(2/ 2/0

—

11

TOTAL, ASIA....*..*.••••••

UNALLOCATED, I NT’L ORGAN*.

1

_____
-Other
PROPERTY CREDITS
. ..___
loans
Foreign
and
Maritime
Liquidation
property
Commission
Commissioner
credits

(2/)
—

4*..— ---- "— q

—

9

—

S
(2/)
1

m.
—

(2/)

—

—

—
1

3
—

(2/)
—

3

(2/ 2/)

—

—

—

—

3¿/

—
L:

,1

-

1/

For important qualifications affecting this table and for definitions of terns, see the Explanatory ffete.

2/

Less than 5500,000* .
Property credits by the War Assets Administration*

¿/

Loan to the United Nations by the State Department.

wA—57—

APPENDIX C

Table 10*— Repayments l/ on U.S. Government foreign credits:
July 1, 1945, to December 31, 1948, by area, country, and
(In millions of dollars)
’

TOTAL

Area and country

PR OPERTY CREDITS—
LOANS^
mari­
jForeign
Export- |
time
Lend- 1 Liquida­
Import
Com­
Lease tion Com­
Bank
missioner mission

TOTAL, ALL AREAS........

893

4.16

TOTAL, ETEOPE........ .

322

118

298

96

TOTAL, ERP PARTICIPANTS.
Austria.
Belgium & Luxembourg.
Prance.

.

33

5
5

. 37

17

390

16

16

168

13

16

168

—

( 2 / 2 J)

(2 /)
3

m

.

12
44

•9
41

41
6
29

am tm

25

—

16
3
4

15

mm

—

—

142

tm am

TOTAL, OTHER EUROPE......

25

22

—

Czechoslovakia.
Finland.
Other........o. . . . . »»09

7

MM

16

7
15

2

PM

MM

TOTAL, LATIN AMERICA«....

107

84

16

Brazil.
Chile ........... •.. •»•. .
Colombia....*|*...#•«•«

23
17
8

19
17
7

Mexico.................
Other Latin Americace®«
Unallocated L.A*

25
17
18

25
14
2

16

n<M

(2 /)
•*pe

313

74

11

8

(2/)

Germany (western)
Greece
Italy

, .

. . . . . .

. . . . . . . . . . . . . . . . .

Netherlands
Norway
Turkey.
.

United Kingdom.

.• • • • • • •

TOTAL, ASIA.«••••••.
Bahrein Islands.,....a©
China.
Iran.

16
77
8

Japan.......
Phillipines.
Other Asia.............

192
13
6

. . . . . . . . . . .

................................................

H Other
loans
and
property
credits

.------------------

5

2

—

3

MM

MM

W
PP

MM

(2/)
1

6
4

1
(2/)
2

MM

(2/ V )

3
(2/0

Ö JV )

MM

5

——

mm

MM

ammm

3
8

. wen

MM

—

••«M

1

131 2 / 6.-

MM

mm

3

1

2

(S/)

(2 / 2 /)

■M
W

—

MM

MM

(2 /)

(2/)

MM
«e n

—
MM

(2/)

(2/)
1
2

(2 /)

37 U

—

3

•0«

mm

73

6

MM

42/
2 2/

MM

MM

M
»«n

M*.

e ilt

1

MM

ww

(2/)
(2/)

(2/)

MM

MM

(2/&0
2 2/2
-M

219
16 2 /

—

3
5

—

192 10/
10 u /
(2 / 2/0

mm

I

_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_

•

{g/ i f )

IM
PS

—

1

u~

APPENDIX G

—A— 58«*

Table 10.— Repayments
on if.S. Government foreign credits:
July 1, 1945, to December 31* 1948, by area, country, and
agency-Continued ^
dollars)
_____________

=

r
Area and country

CANADA

& NEWFOUNDLAND,.

TOTAL, AFRICA..........
Egypt
Other Africa,,.••••••

2/

T

PROPERTY CREDITS

LOANS

Foreign
Liquida­
tion Com­
missioner

Mari­
time
Com­
mission

TOTAL

ExportImport
Baric

LendLease

140

140

—

—

—

1 0

(2/0

—

1 0

—

(2/)

—

10
(2/)

Other
1 oans
and
property
c redits

(2/3/)

10
(2/)

——»

—

For important qualifications affecting this table and for definitions of
terms, see the Explanatory Bote.

2/

Less than §500,000#

3/

Property credits by the War Assets Administration.

U
*

Property credits (comodity programs): §3A million paid to the Agriculture
Department,and $3 million to the Reconstruction Finance Corporation.
Loans by the Reconstruction Finance Corporation.

6/

Does not include §6,936,333 hold in a sinking fund for payment of principal.

7/
^

Includes portions of loans to individuals charged off as uncollectible by tho
Reconstruction Finance Corporation, as follows:' ^ ^ 1 , Batin America,
$1,321,301$ Bolivia, $888,987$ British Honduras, <?430,835| Ecuador, <¿1,479.

2/

loans b y the State Department (Institute of Inter-Amorican Affairs).

2/

Loans by the Reconstruction Finance Corporation.-§1,553,176} loan of tho Stat
Department (Institute of Inter-American Affairs), §30,000.

10/
~ /

Property credits (commodity programs): §180 million paid to the Agriculture
^ p ^ t l e n t and $12 million to tho Reconstruction Finance Corporation.

31/

Loan by the Reconstruction Finance Corporation, §10 millions property credit
b y the War Assets Administration, $57,884»

À~59 -

Appendix D
Table 1.— Membership and quotas in the International Monetary Fund» ^
membership and subscriptions in-the International Bank for *ec
and Development, as of March 31, 194-9
(In millions of dollars)_____________ ________ ?--- .

Member

TOTAL# •#«.*«
Australia# ###••••••••
Austria#••••.#•••••••
Belgium ##••••••••••••
Bolivia*#•••••.«»«•..
Brazil#•••••..*.«•«•»
Canada
Chile#
China#•
Colombia#
Costa Rica##.m m ****
Cuba# .##•••••••••••••
Czechoslovakia,••••..
Denmark ..#•••••••••*•
Dominican Republic •. .
Ecuador ##••••••••••••
Egypt
El Salvador#••••••••#
Ethiopia#
Finland#•••••«**.«*..
France
Greece
Guatemala# #••«••*#••
Honduras# ##••••«».«.
Iceland ••••••##•••••

Fund
Quota

Bank
Subscrip­
tion

8,034.0

8,336.0

200*0
50.0

225*0
10.0
150.0

300.0

50.0
550.0
5 0 .0

2 oo;o

7.0
105.0
325.0
■r35.0
6 00.0
35.0

2 .0

50.0
125.0

35.0
125.0

68 ;0

68;0

5.0
5.0

2 .0
3.2

60.0

53i3
1.0
3.0

6#0

, 38.0

38.0

525.0

525.0
25y0

4 0 .0

5*0
0.5
1.0

2.0
1.0
1.0

Bank
Fund
Subscripr
Quota
tion

India....••••••••*•
Iran#
Iraq#«........• ••• •

4 0 0 .0

Italy..••#......•••
Lebanon.
Luxembourg.........

50.0
225.0

5i0

2,5

Member

Mexico
Netherlands# .......
Nicaragua

35.0

33.6

8 .0

6 .0

1 8 0 .0

1 8 0 .0

4.5

4.5

1 0 .0

1 0 .0

9 0 .0

6 5 .0

275.0

275.0

2 .0

.8

Norway# #*#••••••••.
Panama# #•••••*•««*»
Paraguay...........

5 0 .0

Peru.*
Philippines.... .
Poland..#••••••••.•

2 5 .0

Syria.#..*.....•««.
Turkey...•••..«••«•
Union of S.Africa#.

4 0 0 .0

.5
3.5

15.0
125.0

5 0 .0
*2

1;4
17.5
15.0
1 2 5 .0

6.5
43.0

6.5
43.0

1 0 0 .0

1 0 0 .0

United Kingdom ... .. 1, 300.0 1, 300.0
United States##.... 2,750.0 3,175.0
10.5
15.0
Uruguay.#••*•...«..
V enezuela#.........
Yugoslavia# #.*••.#»

15.0

60.0

10.5
4 0 .O

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 ape
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 terns 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 b y
the Secretary of the Treasury of the amount and price range of accepted bids.
Those submitting tenders will be advised of the acceptance or rejection thereof.
The Secretary of the Treasury expressly reserves the right to accept or reject
.any or all tenders, in whole or in part, and his action in any such respect shall
be final.

Subject to these reservations, non-competitive tenders for $200,000 or

less without stated price from any one bidder will be accepted in full at the
average price (in three decimals) of accepted competitive bids.

Settlement for

accepted tenders in accordance with the bids must be made or completed at the
Federal Reserve Bank on

July Hi, 19k9

in cash or other immediately avail­

able funds or in a like face amount of Treasury bills maturing
Cash and exchange tenders v/iil receive equal treatment.

July ll+, 19h9

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 otner 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 o r ,interest thereof by any State, or any of
the possessions of the United States, or by any-local taxing authority.

For

Washington--RELEASE, MORNING NEWSPAPERS,
Friday, July 8, 19U9.___________

The Secretary of the Treasury, by this public notice, invites tenders for
$ POOjOOQjQOQ

, or thereabouts, of

91

-day Treasury bills, for cash and

in exchange for Treasury bills maturing
July H u 19ii9
, to be issued on
.
.
_
—
--------------------a discount basis under competitive and nonr-competitive bidding as hereinafter
provided.

The bills of this series will be dated

will mature

October 13, 19U9
j when the face amount will be payable without
ip?
They will be issued in bearer form only, and in denominations of

interest.

July llw 19b9

t and

$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
1
'
Daylight Saving
closing hour, two o*clock p.im, Eastern/Staadazd: time, Monday, July 11, 1 9 k 9
Tenders will not be received,at the Treasury Department, Washington.

Each

tender must be for an even multiple of $1,000, and in the case of competitive
tenders the price offered must be expressed on the basis of 100, with not more
than three decimals, e, g., 99.925«

Fractions may not be used.

It is urged

that tenders be made on the printed forms and forwarded in the special envelopes
which will be supplied by Federal Reserve Banks or, Branches on application
therefor.
Tenders will be received without deposit from incorporated banks and trust
companies and from responsible and recognized dealers in investment securities.
Tenders from others must be accompanied by payment of 2 percent of the face

TREASURY DEPARTMENT
Information Service

RELEASE, MORNING NEWSPAPERS,
Friday, July 8 , 19^9«

WASHINGTON. D .C

' . .:S-204.b

The Secretary of the Treasury, by this public notice., invites
tenders for $900,000-,000, or thereabouts,, of 91-<bay.; Treasure bills,
for cash and in exchange for Treasury bills maturing July 14., 1949,
to be issued on- a discount basis under competitive and non­
competitive bidding as hereinafter provided, The bills of this
series will be dated July 14, 19^9, and will mature October 13,1 9 4 9 s 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, $ 5 0 0 ,0 0 0 , and $1,000,000 (maturity value)
Tenders will be received at Federal .Reserve Banlcs .and Branches
up to the closing hour, two o ’clock pan>, Eastern Daylight Saving
time, Monday, July 11, 1949. Tenders Will not be received at the
Treasury Department, Washington. . Each'tender must be for an even ...
multiple of $ 1 ,0 0 0 , and in the case of competitive tenders theprice offered must be expressed on.the basis of 1 0 0 , with not more
than three decimals, e. g., 9 9 .9 2 5 Fractions may not be used.
It is urged that tenders be made on the printed forms and forwarded
in the special envelopes which will be supplied by Federal Reserve
Banks or Branches on application therefor.
Tenders will be received without deposit from incorporated
banks and trust companies and from responsible and recognized
dealers in investment securities. 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 $2 0 0 , 0 0 0 or less without stated price
from any one bidder will be accepted in full at the average price
(in three decimals) of accepted competitive bids. Settlement for
accepted tenders in accordance with the bids must be made or

2
completed at the Federal Reserve Bank on July 14, 1949> in cash
or other Immediately available funds or in a like face amount of
Treasury bills maturing July 14, 1949. 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 b e .exempt from all taxation now or hereafter imposed on
the principal or interest thereof by any State, or any of the
possessions of the United States, or by any local taxing authority.
For purposes of■.taxation the amount of discount at which Treasury
bills are originally sold by the United States shall be considered
to be interest. Under Sections 42 and 117 (a) (l) of the Internal
Revenue Code, as amended by Section 115 of the Revenue Act of
1941, the amount of discount at which bills issued hereunder are
sold shall not be considered to accrue until such bills shall be
sold, redeemed or otherwise disposed of, and such bills are
excluded from; consideration as capital assets. Accordingly, the
owner of .Treasury bills (other than life’insurance companies)
issued hereunder need include in his income tax return only the
difference between the price paid 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-. ;
V
• '•
;i; ,•
Treasury Department Circular No. 4l8, 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

STATUTORY DEBT LIMITATION
as o f ...j ^ j a u J a i a i

T*Ef?« Îi 0|* Î^ ? T/ / /
...* * ^ 1 '

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
liiited States (except such guaranteed obligations as may be held by the Secretary of the Treasury), "shall not
exceed in the aggregate $275,000, (XX),000 outstanding at any one time*

For purposes of this section the current

redemption value of any obligation issued on a discount basis which is redeemable prior to maturity at the option
of Hie holder shall be considered as its face amount. "
The following table shows the face amount of obligations outstanding and the face amount which cam still be
issued under this limitation:
Total face amount that may be outstanding at any one time

$275,000,000,000

Outstanding
Obligations issued, under Second Liberty Bond Act, as amended
Interest-bearing:

1 1 ,5 3 6 ,1 9 6 , 0 0 0
2 9 ,4 2 7 ,4 9 6 ,0 0 0
8,456,2 0 2 ,S0 0 £

.#
Certificates

Of

indebtedness.......

Treasury notes............. .

49,419,894,800

Bands —
Treasury................... .
Savings (current redemp,value)...
Depositary............*......
Armed Forces Leave........... .
Investment series........

110,425,523,550
56,259,766,908
3 6 8 ,5 8 2 ,0 0 0
396,146,025
954,030,000

Special Rinds Certificates of indebtedness.....

1 7 ,6 6 6 ,5 6 3 , 0 0 0
1 5 ,1 0 9 ,0 9 4 ,0 0 0

168,4 d4,04S,1|63

Total interest-bearing.

3 2 ,7 7 5 ,6 5 7 , 0 0 0
2 5 0 .5 9 9 .6 0 0 , 2 8 3

Matured, interest-ceased.....

2^,424,322

Treasury notes..........

Bearing no interest:
War savings stamps............. ...

5 1 ,8 1 6 ,9 9 9

Excess profits tax refund bonds....

4,810,573

Special notes of the United States:
Intemat'l Bank for Reconst,
and Development series.........
Interoat*1 Monetary Fund series..

1)0 ,7 8 5 , 0 0 0
1 ,0 6 3 .0 0 0 , 0 0 0

Total....... ....... ... *.... .

1 ,1 6 0 ,4 1 2 , 5 7 2
2 5 2 ,0 0 0 ,^3 7 , 1 7 7

Guaranteed obligations (not held by Treasury);
Interest-bearing:
Debentures: F.H.A*
Demand obligations: C.C.C.

^

12.953.^6
10.908,897

2 3 ,8 6 2 , 3 8 3

Matured, interest-ceased....

3.H-13.025
27,275,408

Grand total outstanding..... .......... ...... .................

2 5 2 .0 2 7 .7 1 2 .5 g5

Balance face amount of obligations issuable under above authority........
Reconcilement with Statement of the Public "Debt (Daily Statement of the United States Treasury,

22.972.287.415

June

July

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.

3. 0 V 7

252,770,359,860^
27t275,H0g
2 5 2 .7 9 7 .6 3 5 , 2 6 8
769,922.683
2 5 2 ,0 2 7 ,7 1 2 , 5 8 5

STAtUTCRY d e b t ;l i m i t a t i o n
AS cp JUNE, 30« 1949

July 11, 1949

Section 21 of the Second Liberty Bond Adi, 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
pxceed in the aggregate $275,000,000,000 outstanding at any one time. For purposes
of this section the current redemption value of any obligation issued on a discount
basis which is redeemable prior to maturity at the option of the holder shall be
considered as its face amount.”
The following table shows the face amount of obligations outstanding and the
face amount which can still be issued under this limitation:
Total face amount that may be outstanding at any one time

$275,000,000,000

Outstanding
Obligations issued under Second Liberty Bond Act, as amended
Interest-bearing
Treasury bills••«...«••••••• $ 11,536,196,000
Certificates of indebtedness
29,427,496,000
Treasury notes.*.***.*•••••*
8.456.202.800 $ 49,419,894,300
Bonds
Treasury. ...»«•••..*»•••* • 110,425,523,550
Savings (current redemp* value) 56,259,766,908
Depositary.»•*•••.••••••..
368,582,000
Armed Forces Leave•••«••*»
396,146,025
Investment series.*..***.#
954.030.000 168.404»048,483.
Special Funds
Certificates of indebtedness*
17,666,563,000
Treasury notes»..».*...*.*
15,1Q9,094*00Q.
Total interest-bearing».............. .
Matured, interest-ceased.............*.......
Bearing no interest
War savings stamps......•••«
51,816,999
Exoess profits tax refund bonds*
4,810,573
Special notes of the United States:
Internat*1 Bank for Reconst» and
Development series*»*...
40,785,000
Internat’l M onetaiy Rind series 1.063.000*000
Totalo..................• ••.......
Guaranteed obligations (not held by Treasury):
Interest-bearing :
Debentures: F.H.A# •••*••».
12,953,486
Demand obligations: C*C«C« e
10,908,897
Matured, interest— ceased*

32.775.657.000
250,599,600,283
240,424,322

1.160*412.572
252,000,437,177

23,862,383
3.413.025
27,275,408

Grand total outstanding....*...... ..............................

252,027,712,585

Balance face amount of obligations issuable under above authority*.o — 22?972,287,411
Reconcilement with Statement of the Public Debt - June 30, 1949
(Daily Statement of the United States Treasury, July 1, 1949)
Outstanding
Total gross public debt*•«» •••«•••»••••••••• *•*••••• ♦**•#•••••• •*« 252,770,359,860
27.275*408
Guaranteed obligations not owned by the treasury*..*•••••.*..*••••
252,797,635,268
Total gross public debt and guaranteed o b l i g a t i o n s . ..*
Deduct — other outstanding public debt obligations not subject to
debt limitation..........
.... •••••••••••••
S-2047

769.922*683
252,027,712,585

II

RELEASE, MORNING' NEWSPAPERS,
Tuesday, July 12, 1949.

The Secretary of the Treasury announced lest evening that the tenders for
$900,000,000, or thereabouts, of 91-day Treasury hills to be dated July Id and to nature
October 13, 1949, which were offered on July 8, were opened at the Federal Reserve Banks
on July 11.
The details of this Issue are as follows:
Total applied for - $1,999,471,000
Total accepted
900,484,000

Average price

(includes $106,443,000 entered on a non­
competitive basis and accepted In full
at the average price shown below)
- 99.747 Equivalent rate of discount approx. 0.923# per annum

Range of accepted competitive bids:
H ig h

- 99.785 Equivalent rate of discount approx. 0 .85 1# per annum
*
*
*
*
•
0 .9 3 8 # •
*

- 99.743

Low

(22 percent of the amount hid 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

$

27,240,000
1,253,534,000
34,180,000
41,714,000
9,305,000
10,449,000
198,879,000
27,784,000
35,785,000
39,113,000
34,699,000
86,589,000

$ 16,016,000
583,572,000
7,308,000
23,729,000
7,760,000
6,649,000
120,029,000
13,994,000
35,185,000
£4,364,000
22,919,000
39.159.000

$1,799,471,000

$900,484,000

TOTAL

TREASURY DEPARTMENT
Information Service

WASHINGTON, D .C .

RELEASE, MORNING NEWSPAPERS,
Tuesday, July 12, 1 9 4 9 ._____

S-2048

The Secretary of the Treasury announced last evening that the
tenders for $900,000,000, or thereabouts, of 91-day Treasury bills
to be dated July 14 and to mature October 1 3 , 1 9 4 9 , which were
offered on July 8 , were opened at the Federal Reserve Banks on
July 11.
The details of this issue are as follows:
Total applied for - $1,799,471,000
Total accepted
900,684,000 (includes $105,443,000
. .
entered on a non-competitive
basis and accepted in full
at the average price shown
below)
Average price
- 9 9 . 7 6 7 Equivalent rate of discount approx.
0*923$ Per annum
Range of accepted competitive bids:.
High

- 99 *785 Equivalent rate
0.851$
- 99»783 Equivalent rate
0.938$

Dow
{22

of discount approx.
per annum
of discount approx.
per annum

percent of the amount bid for at the low price was accepted)

Federal Reserve
D i s t r i c t ______
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
S t . Louis
Minneapolis
Kansas City
Dallas
San Francisco

Total
Applied for
$

27,240,000
1,253,534,000
34.180.000
41.714.000
9,305,000
10.649.000

$ 1 6 ,0 1 6 , 0 0 0
583.572.000

7 ,308,000

27.784.000
35.785.000
39.113.000
34.699.000
8 6 .5 8 9 .000

23.729.000
7.760.000
6.649.000
1 2 0 .0 2 9 . 0 0 0
13.994.000
35.185.000
24.364.000
2 2 .9 1 9 . 0 0 0
39.159.000

$1,799,471,000

$900,684,000

198,879,000

TOTAL

Total
Accepted

0 O0

"1J.

U JJL

a

JSq e J D h

Ramsey S» Black, former/Third Assistant Postmaster General, has
been appointed State Director for Pennsylvania for the United States
Savings Bonds Division, Uitoter Secretary of the Treasury Foley
announced today»
Mr* Black has been active in Pennsylvania affairs for many
years» His most recent official position "was that of State Treasurer*
As Third Assistant Postmaster General, a position he held from 1938
to 1945* before becoming Pennsylvania State Treasurer, Mr» Black
directed the Postal Savings System with such success that the System
added 1,000,000 depositors and nearly doubled its deposits» He also
was in charge of the money order, registry, insured mail and C.O.D.
services, and the printing and sale of postage stamps»
During the war years he served as chairman of the organization
responsible for the sale of Savings Bonds in post offices»
In 1938 Mr» Black promoted the ’’Silver Jubilee of Parcel Post”»
He also instituted national letter writing week, a campaign to
stimulate letter writing and increase the use of first-class mail
by business mail users«
A life-long resident of Harrisburg, Pennsylvania, Mr» Black
formerly was postmaster^and also served his community as County
Commissioner» He is a veteran of the Spanish American War» He
has been Chairman of the Harrisburg Community Chest and director
of the Welfare Association, as well as president of the Railroad
Y.M»C»A» and the Travelers Aid Society» He is a director of the
Polyclinic Hospital in Harrisburg» He is a member of the Order of
Railroad Conductors, the Brotherhood of Railroad Trainmen, Spanish
War Veterans, Veterans of Foreign Wars, and the Moose, Eagles, and
Roy&l Arcanum»

i

TREASURY DEPARTMENT
Information Service

WASHINGTON,

RELEASE, AFTERNOON NEWSPAPERS,
Thursday, July 14, 19^9«______

S-?-20^9

Ramsey S. Black, former Third Assistant Postmaster
General, has been appointed State Director for Pennsylvania
for the United States Savings Bonds Division, Acting
Secretary of the Treasury Foley announced today.
Mr. Black has been active in Pennsylvania affairs
for many years. His most recent official position was
that of State Treasurer. As Third Assistant Postmaster
General, a position he held from 1938 to 19^5> before
becoming Pennsylvania State Treasurer, Mr. Black directed
the Postal Savings System with such success that the
System added 1,000,000 depositors and nearly doubled its
deposits . He also was in charge of the money order,
registry, insured mail and C.O.D. services, and the
printing and sale of postage stamps.
During the war years he served as chairman of the
organization responsible for the sale of Savings Bonds
in post offices.
In 1938 Mr. Black promoted the "Silver Jubilee of
Parcel Post." He also instituted national letter writing
week, a campaign to stimulate letter writing and increase
the use of first-class mail by business mail users.
A life-long resident of Harrisburg, Pennsylvania,
Mr. Black formerly was postmaster there and also served
his community as County,Commissioner. He is a veteran
of the Spanish American War. He has been Chairman of
the Harrisburg Community Chest and director of the
Welfare Association, as well as president of the Railroad
Y.M.C.A. and the Travelers Aid Society. He is a director
of the Polyclinic Hospital in Harrisburg. He is a member
of the Order of Railroad Conductors, the Brotherhood of
Railroad Trainmen, Spanish War Veterans, Veterans of
Foreign Wars, and the Moose, Eagles, and Royal Arcanum.
0 O0

■V'

SSft IMMEDIATI RELEASE,
Ju l y

1^ ^ 1 9 li9

;

___________

The Bureau of Customs announced to d ay preliminary figures showing, the
quantities of wheat and wheat flour entered, or withdrawn from warehouse, f o r
consumption under the import quotas established in the President’s proclamati r
of May 28, 1941,-as modified "by the President's proclamations of April 13,: 1942,
and Apfil 29, 1943, for the 12 months commencing May 29, 1949» as follows?

Wheat
Country
of ‘
Origin

Established
Quota
(Bushels)

Canada
795,000
China
Hungary
Hong Kong
Japan
United Kingdom
100
Australia
Germany
100
Syria
100
Hew Zealand
Chile
Netherlands
100
Argentina
2,000
11 aly
100
Cuba
Prance
1,000
Greece
Mexi co
100
Panama
U ruguay
Poland and Danzig
Sweden
Yugoslavia
Norway
Canary Islands
Rumania
1,000
Guat emala1
100
Brazil
\ 100
Union of Soviet
Socialist Republics
1Q0
3 elgium
100
8 0 0 ,0 0 0

:

Imports

:May 29, 1949, to

:Jfcly 2. 19k9
(Bushels)
795,000

7 9 5 ,0 0 0

Wheat flour, semolina,
crushed or cracked
wheat, and similar
wheat products
Established :
Imports
Quota
j May 29, 19
: to July 2. 19l
(Pound's)
(Pounds)
3,815,000
24,000
13,000
13,000
8,000
75,000
1,000
' 5,000
5,000 .
1,000
1,000
1,000
14,000
\
2,000
12,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000

4 ,0 0 0 ,0 0 0

3,815,000

3 ,8 1 5 ,0 0 0

TREASURE DEPARTMENT
Washington
IMMEDIATE RELEASE
Wednesday. July 13, 1949
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, 1949, as fol ows.______

Wheat

Country
of
Origin
:Established
î
Quota
(Bushels/
795,000
Canada
China
Hungary
Hong Kong
Japan
100
United Kingdom
Australia
100
Germany
100
Syria
New Zealand
Chile
100
Netherlands
2,000
Argentina
100
Italy
Cuba
1,000
Prance
Greece
100
Mexico
Panama
Uruguay
Poland and Danzig
Sweden
Yugoslavia
Norway
Canary Islands
Rumania
1,000
Guatemala
100
Brazil
100
Union of Soviet
Socialist Republics
100.
Belgium
100
800,000

:
Imports
:May 29, 1949 to
; July 2. 1949 .
(Bushels)
795,000

Wheat flour, semolina,
crushed or cracked
wheat, and similar
wheat products
Imports
Established
May
29, 1949
Quota
to July 2. 1949
(Pounds5
(Pounds)
3,815,000
24.000
13.000
13.000

3,815,000

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

1,00er
1,000
1,000
1,000
1,000
1,000

795,000
öOe

4,000,000

3,815,000

IMMEDIATE RELEASE,
r July
19U9
I3
The Bureau of Customs announced today preliminary figures showing the
imports for consumption of commodities within quota limitations provided
for under the General Agreements on Tariffs and Trade, from the beginning
of the quota periods to July 2, 19U9, inclusive, as follows:
------------- 1
Commodity

— — ----Period and Quantity

Whole milk, fresh or
sour ......... ...
Cream, fresh or sour

...

B u t t e r .... ..... .......

Unit
of
Quantity

Imports as of
. July 2,
1 9k9

Calendar year

3,000,000

Gallon

83t

Calendar year

1,$00,000

Gallon

kQk

(i)
26,681,369

Pound

1U,U96,6$6

1$0,000,000
60,000,000

Pound
Pound

Quota filled
Quota filled

5 ,000,000

Pound

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
rouauoes:
certified seed .......
o t h e r ...... ..........

12 months from
Sept. 1$, 19U8

Walnuts .........

Calendar year

(1)

1,562,51*8

The proviso to Item 717(b) limits the
imports for consumption at the quota
rate to 20,161,026 pounds during the
first nine months of the calendar year«

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, 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. 12,635>*06b
pounds of such Cuban tobacco were imported for consumption during the
period January 1 to July 2, 1 9k9$ inclusive.
......................

.

TREASURY DEPARTAIENT
Washington
IMMEDIATE RELEASE
Wednesday. July 13« 1949

S-2051

The Bureau of Customs announced today preliminary figures showing the
imports for consumption of commodities within quota limitations provided
for under the General Agreements on Tariffs and Trade, from the beginning
of the quota periods to July 2, 1949, inclusive, as follows:

Commodity

Whole milk, fresh or
sour .......... .

Period and Quantity

Unit
of
Quantity

Imports as of
July 2 ,
1949 '

Calendar year

3,000,000

Gallon

834

Cream, fresh or sour .... Calendar year

1,500,000

Gallon

404

Butter .................. Quota ineffective for the
period April through October
Fish, fresh or frozen,
filleted, etc., cod,
haddock, hake, pollock,
cusk, and rosefish .... Calendar year

(1)
26,881,369

Pound

14,496,656

White or Irish
Potatoes:
certified seed
other ................

12 months fromL 150,000,000
Sept. 15, 1948; 6 0 ,0 0 0 , 0 0 0

Pound
Pound

Quota filled
Quota filled

W a l n u t s .... .

Calendar year

5,000,000

Pound

1,562,548

CD

The proviso to Item 717 (b) limits the
imports for consumption at the quota
rate to 20,161,026 pounds during the
first nine months of the calendar year

Due to a provision of the President’s Proclamation No. 2769 of
January 30, 1948, in which the entry of a specified quantity of Cuban
filler tobacco, 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. 12,635,064
pounds of such Cuban tobacco were imported for consumption during the
oeriod January 1 to July 2. 1949. inclusive.

/>
immediate release ,
\ j u L ^ r i K 19U9

2

0

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, 1 9h9> to July 2, 19h9,
inclusive, as follows *

t

^ Products of the
' vS Philippines

:
j

t

Established Quota
^
Quantity

t Unit of
t Quantity

*
» <<"
_______________________ i_____________________ i
Buttons .............

850,000

_____________

Gross

2 2 9 ,9 9 k

252,150

200,000,000

Number

Coconut O i l ...... .....

Ui8,000,000

Pound

Cordage ...............

6,000,000

«

R i c e ........ ..........

1 ,0*40,000

«\

(refined....................... ................ ..
.......
1,90U,000,000
Pound
(unrefined........................................

Tobacco ...............

6,500,000

Imports as of
July 2, 19U9

«

Cigars ................

Sugars

t
:
:

»

¿¿6,161 ,U83
82*4,635

729 ,58*4,698
326,000

TREASURY DEPARTMENÎ
Washington
IMMEDIATE RELEASE
Wednesday. July 13. 1949

S-2052

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, 1949, to July 2, 1949,
inclusive, as follows:

Products of the
Philippines

:
:

Buttons ••••«•»••••••••

Established Quota
Quantity

850jQ00

: Unit of
: Quantity

229,9 9 4
252^50

200*000,000

Humber

Coconut Oil ».•••••••••

448,000*000

Pound

Cordage

6,000,000

**

Rice .................

1,040,000

"

(refined ............................. .*♦
1,904,000,000
Pound
(unrefined
•*•*•••••

Tobacco .....

6,500,000

Imports a s of
July 2, 1949

Gross

Cigars ...............

Sugars
v

:
:

*

46,161,40$.
824,6 35

~
129 >584,6 9 8

326,000

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 MANUFACTURED OR OTHERWISE ADVANCED IN VALUEi Provided, howrver, 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 : Total imports ^Established?
Country of Origin : TOTAL QJJOTA ? Sept. 20, 1948,1 33-1/3$ off Sept. 20, 1948,
s to July 2,
Total Quota?to July 2,19k&/
•
United Kingdom....
Canada.............
France.... ........
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 1
76,329
21,263 !
5,482,509 j

—
-

1,441,152
75,807
22,747
14,796
12,853
25,443
7,088

321,276

1,599,886

21,81)5
23U,971
6b,U60

1,/ Included in total imports, column 2.

-oOo-

21,81)5
—
•
1

21,81)5

j

IMMEDIATE RELEASE
x /
¿ L 0 S 3
July i*, 1 9k9
1J
. ,
. . ,
.
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* lp_3^ us amended, for the period September 20,
1948, to July 2,
1949,^5^Wfbllowsi
COTTON (other than linters)
(In pounds)
<

Country of
Origin

Under 1-1/8” other
t han r ough or har sh
under 3/4n
Established: Imports Sept.
20, 1948, to
Quota
July 2. 19U9

Egypt and the
Anglo-Egyptian’
783,816
Sudan'..........
•247,952
Peru........ .
British India.... 2,003,483
China...•........ 1,370,791
8,883,259
Mexico...........
618,723
Brazil...........
Union of Soviet
Socialist Repub­
lics. ... .1.......
475;124
Argentina.^..1.^.
5,203
Haiti............
'237
Ecuad or..........
9,333
Honduras.........
752
Paraguay.........
871
Colombia.........
124
Iraq.............
195
British ’East
Africa...........
2,240
Netherlands East
Indies........•..
71,388
Barbados........
Other British
West Indies l/...
21^321
Nigeria.........
5,377
Other British
West Africa 2/...
16,004
Other French
Africa 3/».......
689
Algeria and Tunisia
-

14,516,882

2U?,952
292,269
U,933,123
U60,0l*0

1-1/8” or more
but less than
1-11/16” U
Imports Sept.
20, 1948, to
July 2, 19U9

Less than 3/4"
harsh or rough 5/
Imports Sept. 20,
1948, to July 2,
19k9

14,117,797
932,140
—

606,183
-

—
20,621,^)0
*■*
—
—

283,3U9

•

6,216,733

U5,656,1*20

1/ Other than Barbados, Bermuda, Jamaica, Trinidad, and Tobago.
Other than Gold Coast and Nigeria.
3/ Other than Algeria, Tunisia, and Madagascar.
4/ Established Quota - 45,656,420.
5/ Established Quota - 70,000,000.

2 0 ,6 2 1 , 9 0 0

y ßisti/

ÎREASURY DEPARTMENT
Washington

IMMEDIATE RELEASE
Wednesday« Ju3.y 13* 1949

S~2053

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,
1948, to July 2, 1949, inclusive, are as followsj
COTTON (other than linters)
(in pounds)
_____________

Country of
Origin

:1-1/8" or more :
Less than 3/4U
Under 1 - 1 / 8 ® other
than rough or harsh
*1*11/16" 4?Sn - harsh or rough l !
under 3/4"
s Established:Imports Sept*: Imports Sept®: Imports Sept* 20,
:
Quota
:20, 1948, to : 20, 1948, to : 1948, to July 2,
1949_____ _
j_________
sJuly 2« 1949 : July 2« 1949 t

Egypt and th@
Anglo-Egyptian
—
783,816
Sudan# «a####*••
2
4
7
,9 5 2
247,952
Peru*#•*••*••*$
292,269
British India## 2,003,483
*•*
China *#•«•«•••<» 1,370,791
4,933,123
Mexic o« •#•«■#••« 8,883,259
460,040
618,723
Br asrll* #®«* «*<>»
Union of Soviet
Socialist Repub283,349
475,124
lies «••«•••••••
5,203
Argentina«##»«®
237
Haiti #«#••*©•##
9,333
Ecuador««#«*•••
752
Honduras «*«»• »•
871
Paraguay«*•••»#
124
Colombia#«*
195
Iraq##»«*••*•••
British East
2 ,2 4 0
Africa«©«♦# *®•o
Netherlands
71,388
East Indies«#**
Barbados*#*® *«*
Other British
21,321
West Indies
5,377
Nigeria**®***«*
Other British
16,004
West Africa 2/
Other French
689
Africa 3/««#«••
Algeria and Tunisia
14,516,882

6,216,733

44,117,797
932,440
**
*«*

20,621,900

6 0 6 ,1 8 3

—

*

45,656,420

20,621,900

1/ ‘Other'than BarBadosJ"Bermuda, Jamaica, Trinidad, and TuUgu*
Other than Gold Coast and Nigeria*
3 / other than Algeria, Tunisia, and Madagascar*
t J Established Quota - 45,656,420«
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 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:
;
;Total imports
;Established:
Imports
EstablishedsSept* 20, 1948, : 33^l/3$> offSept# 20, 1948/
Country of Origin fTOTAL QUOTA:to July 2, 1949 :Total Quota:to July 2,1949 1/
United Kingdom#«*«•♦
Canada o«¡>*»***i>****®#
France #•###*o»e***>#*
British India#*®....
Netherlands «,«**«»•••
Switzerland# *•*»•*««
Japan###****** fe%.#**#
China#»**»**»*«*4* o#
Egypt............. *
Cuba•••••»•«•••••a#»
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
76,329
21,263

21,845
234,971
64,460
—
—
—
—

1,441,152
—
75,807
«
22,747
14,796
12,853
«
-*

5,482,509

321,276

1 ,5 9 9 , 8 8 6

1/ Included in total imports, column 2#

— oOo—

—
25,443
7,088

21,845
•—»
n

«Ht
—
— ■
.

***

—
**
—
21,845

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) (1) of the Internal Revenue Code, as amended by Section 115 of the
Revenue 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. UI 83 ns 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

-

XX2EBEX
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 vail be opened at the Federal
Reserve Banks and Branches, following which public announcement- vail 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 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 Dies must be made or completed at the
Federal Reserve Bank on

July 21 ^ 19U9

> an cask cr other immediately avail-

able funds or in a like face amount of Treasury bills maturing
Cash and exchange tenders will receive equal treatment.

July 21 j 19u9

♦

Casn adjustments vail be

made for differences between the par value of maturing birls 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 taxiing authority-.

For

p m

gpg

TREASURY DEPARTMENT
Washington

il <7 ^

y
£0R RELEASE, MORNING NEWSPAPERS*
Friday, July 15» 19U9.

The Secretary of the Treasury, by this public notice, invites tenders for

$ 9QQ«0Q0»Q00

>

91 -day Treasury bills, for cash and

or thereabouts, of

in exchange for Treasury bills maturing

July 21* 1949

, to be issued on

a discount basis under competitive and non-competitive bidding as hereinafter
provided.

The bills of this series will be dated
91 1 Ql|Q______ , and
^
ft)
will mature
October 20* 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
Daylight Saving
closing hour, two o* clock p.m., Eastern jfeftatTdgndc time, Monday» July 18» 1949
Tenders will not be received at the Treasury Department, Washington*

Each

tender must be for an even multiple of $1,000, and in the case of competitive
tenders the price offered must be expressed on the basis of 100, with not more
than three decimals, e, g., 99.925.

Fractions may not be used.

It is urged

that tenders be made on the printed forms and forwarded in the special envelopes
which will be supplied by Federal Reserve Banks or Branches on application
therefor.
Tenders will be received without deposit from incorporated banks and trust
companies and from responsible and recognized dealers in investment securities.
Tenders from others must be accompanied by payment of 2 percent of the face

TREASURY DEPARTMENT
Information Service

RELEASE, MORNING NEWSPAPERS,
Friday, July 15» 1949«______

WASHINGTON, D .C

S-2054

The Secretary of the Treasury, by this, public- notice, invites
tenders for $900,000,000,, or thereabouts, of 9 1 -day Treasury bills,
for cash- and in exchange for Treasury bills maturing July 21, 1949,
to be issued on a discount basis under competitive aind non- -r.
.
competitive bidding as hereinafter provided.-. The bills ,of* this
series will be dated July 21, 1949, and will mature October 20, 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 ,0 0 0 , $-10,oq o, $ 1 0 0 ,0 0 0 ,, $50-0„000, and $ 1 ,0 0 0 ,0 0 0 (maturity value)
'lenders will be received -at Federal Reserve Banks and Branches;
up to the closing -hour, two o'clock, p.m,, Eastern'Daylight Saving
time, Monday, July-18, 1949.- Tenders will not be received at the -’
Treasury Department,: Washington. Each tender must be for an even
multiple of $1,000, and in the case of competitive tenders the
price offered, must be expressed on the basis of 100, with not more
than three decimals ,-,e . g., 99 «925 • Fractions may not be used.
It is -urged that tenders be made-on the printed .forms and forwarded
in the special envelopes which will be supplied by Federal .Reserve
Banks or Branches on application therefor. •
Tenders will be received without deposit from incorporated
banks and trust companies and from responsible and recognized
dealers in investment securities. Tenders from others must be
accompanied by payment' of 2•percent of the face amount of Treasury
bills applied for, unless the tenders are accompanied by an express
guaranty of payment by an incorporated bank or trust company.
Immediately after the closing hour, tenders will be opened at
the Federal Reserve Banks and Branches, following which public
announcement will be made by the Secretary of the Treasury of the
amount and price range of accepted bids. Those submitting tenders
will be advised of the acceptance or rejection thereof. The
Secretary of the Treasury expressly reserves the right to accept
or reject any or all tenders, in whole or in part, and his action
in any such respect shall be final. Subject to these reservations,
non-competitive tenders for $200,000 or less without stated price
from any one bidder will be accepted in full at the average price
(in three decimals) of accepted competitive bids. Settlement for

2
accepted tenders in accordance with the bids must be made or
completed at the Federal Reserve Bank on,July 21, 1 9 4 9 , in cash
or other immediately available funds or in a like face amount of
Treasury bills maturing July 21, 1949» Gash and exchange tenders
will receive, equal treatment. Cash adjustments will be made for
differences between the pai* value of maturing bills accepted in
exchange and the issue price of the new bills.
The income derived from Treasury bills, whether interest or
gain from the sale or other disposition of the bills, shall not
have any exemption, as such, and loss from the sale or other
disposition of Treasury bills shall not have any special treatment,
as such, under the Internal Revenue Code, or laws amendatory or
supplementary thereto. The bills shall be subject to estate,
inheritance, gift or other excise taxes, whether Federal or State,
but shall be exempt .from all taxation now or hereafter imposed on
the principal or interest thereof by any State, or any of-the
possessions of the United States, or by any local taxing authority.
For purposes of taxation the amount of discount at which Treasury
bills are originally sold by the United States shall be considered
to be interest. Under Sections 42 and 117 (a) (l) of the Internal
Revenue Code, as amended by Section 115 of the Revenue Act of 1941,
the amount of discount at which bills issued hereunder are sold
shall not be considered to accrue, until such bills shall be sold, ;
redeemed or otherwise disposed of, and such bills are excluded
from consideration as capital assets. Accordingly, the owner of
Treasury bills (other than life insurance companies) issued here­
under 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. 4l8, 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,

0 O0

TO m . M R T ïZ T t

T h e following t r w m m U m a w e m m àm im < U r * e t m à g m t m U e d

m m rìM m

o f ilio

(tomrmmt

fo r

îr#nmœy

lavootwmt má

o tfe o r

accounts ê ^ l u g Ühe w m M of Jm * 9 WkP$

M m* * * * ♦ * * 4

FurcbAsta # * # « «

| H 6 t2 ^ f600

tT»f3fâ5S0

»% M m « * * # * I 13,353,0*50

SÜ D . C. L. HORMAN

C à i« * , M r t f t l o a o f I a w t ® * a t *

1

Wisecarveri ? / l l A 9

TREASURY DEPARTMENT
Information Service

WASHINGTON, D .C .

s i - 2 , ° ^
newspapers

,

During the month or œ & j

1 9 *1-9

market transactions in direct and
guaranteed securities of the
Government for Treasury investment
and other accounts resulted in net
2 ,o & 0

sales of

,

Secretary

Snyder announced today.

oOo

TREASURY DEPARTMENT
Information Service

Wa s h i n g t o n , d . c .

IMMEDIATE RELEASE,
Monday, June l8, 1949.

S-2055

During the month of June,
1949

market transactions in direct

and guaranteed securities of the
Government for Treasury investment
and other accounts resulted in net
sales of $88,353,050, Secretary
Snyder announced today.

0

O0

■r
J

RELEASE, MORNING NEWSPAPERS,
Tuesday, July 19« 1949.

o T U '

secretary of the Treasury announced last evening that the tenders for
$900,000,000, or thereabouts, of 91-day Treasury bills to be dated July 81 and to nature
October 80, 1949, which were offered on July 15, were opened at the federal Reserve
Banks on July 15.
The details of this issue are as follows:
Total applied for - $1,485,604,000
Total accepted
901,728,000

Average price

(includes $85,047,000 entered on a noncompetitive basis and accepted in full
at the average price shorn below)
- 99*766 Equivalent rate of discount approx. 0.928$ per annum

Range of accepted competitive hide:
High

- 99.800 Equivalent rate of discount approx. 0.791$ per annum
- 99.763
*
»
•
•
"
0.938$ •
w
(31 percent of the amount hid for at the low price was accepted)

federal Reserve
District

Total
Applied for

Total
Accepted

Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louts
Minneapolis
Kansas City
Dallas
San fr&noiseo

$

14,762,000
1,296,553,000
26.648.000
30.075.000
4,764,000
10.064.000
186,556,000
7.788.000
8.460.000
81.895.000
£1,752,000
56.889.000

$ 14,762,000
627,554,000
16.648.000
22.858.000
4.764.000
10.064.000
97.906.000
7.098.000
8.328.000
21,205,000
81.158.000
49.389.000

$1,625,606,000

$901,722,000

TOTAL

TREASURY DEPARTMENT
WASHINGTON, D .C .

Information Service
RELEASE, MORNING NEWSPAPERS,
Tuesday, July 19. 19^9«_____

S-2 0 5 6

The Secretary of the Treasury announced last evening that the
tenders for $9 0 0 ,0 0 0 ,0 0 0 , or thereabouts, of 91-£ay T?’?a®urJ bllls
to he dated July 21 and to mature October 20, 1 9 ^ , which were
offered on July 15, were opened at the Federal Reserve Banks on
July 18.
The details of this issue are as follows:
Total applied for
Total accepted

Average price

$1,625,606,000
9 0 1 ,7 2 2 , 0 0 0

,

(includes $85,047,000 entered
on a non-competitive basis
and accepted in full at the
average price shown below)
9 9 , 7 6 6 Equivalent rate of discount approx.
0 .9 28 $ per annum

Range of accepted competitive bids:
Eigh

- 99.800 Equivalent rate
0 .791 $
- 9 9 . 7 6 3 Equivalent rate
0 ,93 8 $

Lo¥
(31

of discount approx.
per annum
of discount approx.
per annum

percent of the amount hid for at the low price was accepted)
Total
Applied for

Federal Reserve
District

14,762,000
1,296,553,000
26.648.000
30.075.000
4.764.000
10.064.000
1 2 6 ,5 5 6 , 0 0 0
7 .7 8 8 . 0 0 0
8,460,000
2 1 .8 9 5 . 0 0 0
2 1 .7 5 2 . 0 0 0
5 6 .2 8 9 . 0 0 0

$ 14,762,000

$1,625,606,000

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

$

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

Total
Accepted

0 O0

627,55^,000

16.648.000

.

22 858.000
4.764.000
10.064.000
97.906.000
7 .0 9 8 . 0 0 0
8 .3 2 2 . 0 0 0
2 1 .2 0 5 . 0 0 0
21,152,000
49,389,000

** 5 ~
For the fidelity with which Lions International has given
its support to the Savings Bonds Program, it is ay pleasure,
President Briggs, on behalf of the people of the United States
and for the Secretary of the Treasury, to award this citation*

” United States Treasury department
Distinguished Service Award
To Lions International
For leadership in building security
for the people and the Nation
through United States Savings Bonds*
Awarded under ay hand and seal, July 19, 191$,
John W* Snyder, Secretary of the Treasury.”

I think it important, too, that a man who, in the exercise of
thrift, provides for his cwn and his family »a future by acquiring
Savings Bonds is certain to gain personal dignity and to broaden
his understanding through his bond-owning experience.

The stature

of his citizenship increases. He is a better American.
It is most significant that the Savings, Basis Program always
has been a great volunteer effort. The paid staff of the Treasury*
Savings Bonds Division is microscopic in size in comparison to the
volunteer staffs which carry on the bond promotion and bond selling
tasks throughout the country# I think that the volunteers are
proud of the splendid job they have done3 certainly they have a
right to be, and certainly we of the Treasury Department are proud
of them almost beyond words.

The success of their efforts is an

inspiring example of democracy in action for the common good.

I

think there can be read into that example a very impressive meaning
and translated into words it might be:

"Men can be free. Men’s

rights can be respected. Men can live in peace and happiness with
each other. Men can have peace and opportunity and security."
To

recall these facts about Savings Bonds is to provide a

ready answer, I think, to the question which X propounded uWglUi
..J^apnweoBrks —

“Have we been wise in giving all-out support to

the Savings Bonds Program, and should we continue our active
support?” I know that your answer .£• an emphatic yes.
K

the United States Savings Bonds Program and the strengthening
of our free way of life.

This is no forced nor labored correlation.

It is therej it is real! it is valid.
It is there# first# because the ’‘isms’1 which we do not accept
have never been known to thrive in sound economic soil.

They

flourish in the midst of poverty and suffering# in economic
demoralization and frustration.
is the feeling of having

The inununizer against "lams»

of earning —

the sense of proprietorship.

It is the feeling a man has when he owns a home# hi® own business#
a satisfying job# a bank account# shares of stock in a sound
company, an insurance policy.

It is the feeling

^ P ^ f b o n d purchaser has when he looks at his accumulation of
Savings Bonds and realizes that the profit system works for hjm.
Few people with dollars invested in Savings Bonds would be interested
In having an “ism” Government in this oountxy.

So there is your

first correlation between the Savings Bonds program and the
preserving and strengthening of our way of life.
In addition to being valuable intrinsically# a United States
Savings Bond is a share in the greatest
the United States Government.

free enterprise

on earth *

The bond holder# like any other

shareholder# tends to become resistant to those influences which
would undermine the structure of the enterprise in which he now
has a financial Interest.

in the<Opportunity Drive just closed was

a factor of considerable,

importance in achieving the national sales we sought, and in
numerous states and communities the effective work of your clubs
c o n t r i b u t e d t o the Drive*s success*
Having mentioned your support of the Bond Program, I should
like to ask a question and then answer it*

The question is:

"Have

we been wise in giving all-out support to the Savings Bonds program,
and should we continue our aotive support?'1
The United States Savings Bonds Program is really the most
amazing sales success story ever written*

Today, approximately

billion dollars worth of Savings Bonds are held by^th*
ef this-Ma M «if. compared with
the end of the war*

billion dollars worth hi

Redemptions are currently runnin

tfS B M — f 1 percent per month of the amount out standi

“

than
les

have been exceeding redemptions for many months consecutively*
This record of success, in itself, is striking evidence of
the value of the Savings Bonds program, which is a powerful force
in wise debt management; in the stabilization of the economy, in
the inculcation and advancement of the thrift habit, so vital J & to the development of our individual and national resources; and
in the attainment of individual and national economic security*
But there is still another value in the correlation between the

President

Briggs# Mr» Jones, Distinguished Officers# Ladles

and Gentlemen of the Convention:
\

It is Inspiring to know that in this great audience today
there are many good friends and neighbors from other lands.

It

is even more inspiring to realize that in this room, political
boundaries are non-existent, and that all of you have but one
common

purpose —

that of serving your fellow-man.

are the seeds of peace.

Here indeed

Here indeed is a practical demonstration

to the whole t t o v l d i that men can live in peace and amity with each
other*
The world is not unmindful of your great contributions to
the under-privileged, to the blind, and the countless hours given
to community service — ■ but time may well prove that your greatest
contribution will be in the field of better understanding among
men*

So, in these difficult and trying days, it is refreshing to

come into this atmosphere and to talk with you for these few
minutes*
As one reviews the work of your organization, he is impressed
by the fact that this work, in addition to being idealistic, is
also most practical.

We in the treasury Department, for example,

have noted with great interest and appreciation your support of
coir Savings Bonds Program —
side of your endeavors*

a fine demonstration of the practical

I might well add that your cooperation

TO i
M r . Bartelt
M r . Bray
Mr. Dillon
Mrs. Dubinsky
Mr. Haas
Mr. Graham
Mr. Foley
Miss Kelly

Mr. Thomas Lynch
M r . Martin
Mr. Parsons
Mr. Rivers
M r . Siler
Miss Simpson
Mrs. Eliz. Smith

lASURt

.1 t

REMARKS BY UNDER SECRETARY OF THE TREASURE
EDWARD H. FOLEY, JR., BEFORE ANNUAL
CONVENTION OF LIONS INTERNATIONAL,
MADISON SQUARE GARDEN, NEW YORK
CITY,2:40 P.M. EDT JULY 19.1949

U

Rem arks by A s s is t a n t S e c r e t a r y o f th e T r e a s u r y
Jo h n S . Graham, B e fo re A n n u a l C o n v e n tio n
o f L io n s I n t e r n a t i o n a l , M a d iso n S q u a re
G a rd e n , New Y o r k C i t y , 2 :^ 0 P .M . EDT,
T u e sd a y , J u l y 1 9 , 19^9*

President Briggs, Mr. Jones, Distinguished Officers,
Ladies and Gentlemen of the Convention:
It Is inspiring to know that in this greau audience
today there are many good friends and neighbors f r o m
other lands. It is even more inspiring to realize that
in this room, political boundaries are non-existent, and
that all of you have but one common purpose -- that of
serving your fellow-man. Here indeed are the^seeds of
peace. Here indeed is a practical demonstration to the
whole world that men can live in peace and amity with
each other.
The world is not unmindful of your great contributions
to the under-privileged, to the blind, and the countless
hours given to community service — but time may^well prove
that your greatest contribution will be in the field of
better understanding among men. So, in these difficult
and trying days, it is refreshing to come into this
atmosphere and to talk with you for these few minutes.
As one reviews the work of your organization, he is
impressed by the fact that this work, in addition to being
idealistic, is also most practical. We in the Treasury
Department, for example, have noted with great interest
and appreciation your support of our Savings Bonds Program
a fine demonstration of the practical side of your
endeavors. I might well add that your cooperation in the
highly successful Opportunity Drive just closed was a factor
of considerable importance in achieving the national sales
we sought, and in numerous states and communities the
effective work of your clubs contributed much to the Drive’s
success.

S -2 0 5 7

2
Having mentioned your support of the Bond Program*
I should like to ask a question and then answer it. The
question is: ’’Have we been wise in giving all-out support
to the Savings Bonds program, and should we continue our
active support?"
The United States Savings Bonds Programáis really
the most amazing sales success story ever written. Today,
approximately 48 billion dollars worth of Savings Bonds
are held by individuals, compared with 43 billion dollars
worth held by individuals at the end of the war. Redemptions
are currently running less than 1 percent per month of the
amount outstanding, and sales have been exceeding redemptions
for many months consecutively.
This record of success, in itself, is striking evidence
of the value of the Savings Bonds program, which is a power­
ful force in wise debt management; in the stabilization of
the economy, in the inculcation and advancement of the
thrift habit, so vital to the development of our individual
and national resources; and in the attainment of individual
and national economic security. But there is still another
value in the correlation between the United States Savings
Bonds Program and the strengthening of our free way of life.
This is no forced nor labored correlation. It is there; it
is real; it is valid.
It is there, first, because the "isms" which we do not
accept have never been known to thrive in sound economic
soil. They flourish in the midst of poverty and suffering,
in economic demoralization and frustration. The immunizer
against "isms" is the feeling of having -- of owning -the sense of proprietorship. It is the feeling a man has
when he owns a home, his own business, a satisfying job,
a bank account, shares of stock in a sound company, an
insurance policy. It is the feeling a bond purchaser has
when he looks at his accumulation of Savings Bonds and
realizes that the profit system works for h i m . Few people
with dollars invested in Savings Bonds would be interested
in having an "ism" Government in this country. So there
is your first correlation between the Savings Bonds program
and the preserving and strengthening of our way of life.
In addition to being valuable intrinsically, a United
States Savings Bond is a share in the greatest free enter­
prise on earth -- the United States Government. The bond
holder, like any other shareholder, tends to become resistant
to those influences which would undermine the structure of
the enterprise in which he now has a financial interest.

3
I think it important, too, that a man who, in the
exercise of thrift, provides for his own and his family’s
future by acquiring Savings Bonds is certain to gain
personal dignity and to broaden his understanding through
his bond-owning experience. The stature of his citizen­
ship increases. He is a better American.
It is most significant that the Savings Bonds Program
always has been a great volunteer effort. The paid staff
of the Treasury’s Savings Bonds Division is microscopic
in size in comparison to the volunteer staffs which carry
on the bond promotion and bond selling tasks throughout
the country. I think that the volunteers are proud of
the splendid job they have done; certainly they have
a right to be, and certainly we of the Treasury Department
are proud of them almost beyond words. The success of
their efforts is an inspiring example of democracy in
action for the common good. I think there can be read
into that example a very impressive meaning, and translated
into words it might be: "Men can be free. Men’s rights
can be respected. Men can live in peace and happiness with
each other. Men can have peace and opportunity and security
To recall these facts about Savings Bonds is to provide
a ready answer, I think, to the question which I propounded
"Have we been wise in giving all-out support to the Savings
Bonds Program, and should we continue our active support?"
I know that your answer will be an emphatic yes.
For the fidelity with which Lions International has
given its support to the Savings Bonds Program, it is my
pleasure, President Briggs, on behalf of the people of the
United States and for the Secretary of the Treasury, to
award this citation:
"United States Treasury Department
Distinguished Service Award
To Lions International
For leadership in building security
for the people and the Nation
through United States Savings Bonds.
Awarded under my hand and seal, July 19, 19 ^9 *
JohnW. Snyder, Secretary of the Treasury."

0 O0

“*8R IMMEDIATE RELEASE
July 1?, 19U9
►

The Bureau of Customs announced today that the Mexican quota of
8,883,259 pounds of cotton having a staple length less than 1-1/8

inches

other than rough or harsh cotton less than 3/k inch in staple, and
linters for the quota year ending September 19, 19U9, was approximately
60 percent filled as of July 19, 19U9*

IMMEDIATE RELEASE,
Tuesday, July 19. 1949

S—2058

The Bureau of Customs announced today that the Mexican
quota of 8,883,259 pounds of cotton having a staple length less
than 1-1/8 inches, other than rough
3/4 inch in

or harsh cotton less than

staple, and linters for the quota year ending

September 19, 1949, was approximately 60 percent filled as of
July 19} 1949«

oOo

«* 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.

Under Sections 1|2

and 117 (a) (1) of the Internal Revenue Code, as amended by Section 113 of the
Revenue Act of 19ii-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 between the price paid for such bills, whether on original issue or
on subsequent purchase, and the amount actually received either upon sale or
redemption at maturity during the taxable year.for which the return is made, as
ordinary gain or loss.
Treasury Department Circular No. 1*18, as amended, and this notice, prescribe
the terms of the Treasury bills and govern the conditions of their issue.
of the circular may be obtained from any Federal Reserve Bank or Branch.

Copies

-

2

-

amount of Treasury bills applied for, unless the tenders are accompanied by an
express guaranty of payment by an incorporated bank or trust company.
Immediately after the closing hour, tenders will be opened at the Federal
Reserve Banks and Branches, following which public announcement will be made by
the Secretary of the Treasury of the amount and price range of accepted'bids.
Those submitting tenders will be advised of the acceptance or rejection thereof.
The Secretary of the Treasury expressly reserves the right to accept or reject
any or all tenders, in whole or in part, and his action in any such respect shall
be final.

Subject to these reservations, non-competitive tenders for $200,000 or

less Without stated price from any one bidder will be accepted in full at the
average price (in three decimals) of accepted competitive bids.

Settlement for

accepted tenders in accordance with the bids must be made or completed at the
Federal Reserve Bank on

July 28. 1949_____ , 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.

July 28. 1949____

i

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 tiie United States, or by any local taxing,authority.

For

Bsdsricbridaodc

TiM m vrffiPARTm in:
W r^ h i n r t n n

—■

¥m

RELEASE, MORNING NEWSPAPERS.
Friday. July 22, 1949._________
iii

The Secretary of the Treasury, by this public notice, inyites tenders for
$900,000,000

, or thereabouts, of

91 -day Treasury bills, for cash and
n s

in exchange for Treasury bills maturing July 28, 1949______ , to be issued on
SJ
a discount basis under competitive and non-competitive bidding as hereinafter
provided.

The bills of this series- will be dated

July 28, 1949

, and

will mature October 27, 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, $ 50 0 ,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/Ska&staxd: time, Monday, July 25, 1949
„
1 S5
*
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
RELEASE, MORNING NEWSPAPERS,
Friday. July 22, 19^9-______

W a s h i n g t o n ,d .c .

S-G059

The Secretary of the Treasury, by this public notice, invites
tenders for $900,000,000, or thereabouts, of 91-day Treasury bills,
for cash and in exchange for Treasury bills maturing July 28, 1949,
to be issued on a discount basis under competitive and non­
competitive bidding as hereinafter provided. The bills of this
series will be dated July 28, 1949, and will mature October 27,
1949, when the face amount will be payable without interest. They
will be issued in bearer form only, and in denominations of $ 1 ,0 0 0 ,
$5 ,0 0 0 , $1 0 ,0 0 0 , $ 1 0 0 ,0 0 0 , $ 5 0 0 ,0 0 0 , and $ 1 ,0 0 0 , 0 0 0 (maturity
value) .
Tenders will be received at Federal Reserve Banks and Branches
up to the closing hour, two o'clock p.m., Eastern Daylight Saving
time, Monday, July 2 5 , 1 9 4 9 . Tenders will not be received at the
Treasury Department, Washington. Each tender must be for an even
multiple of $ 1 ,0 0 0 , and in the case of competitive tenders the
price offered must be expressed on the basis of 1 0 0 , with not more
than three decimals, e. g., 99-925. Fractions may not be used.
It is urged that tenders be made on the printed forms and forwarded
in the special envelopes which 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 $2 0 0 , 0 0 0 or less without stated price
from any one bidder will be accepted in full at the average price
(in three decimals) of accepted competitive bids. Settlement for

- 2 -

a c c e p te d t e n d e r s i n a c c o rd a n c e w it h th e b id s m ust be made o r
co m p le ted a t th e F e d e r a l R e s e rv e B a n k on J u l y 2 8 , 1 9 4 9 , i n c a sh
o r o t h e r im m e d ia te ly a v a i l a b l e fu n d s o r i n a l i k e f a c e amount o f
T r e a s u r y b i l l s m a tu rin g J u l y 2 8 , 1949 • C ash and exch an g e t e n d e rs
w i l l r e c e iv e , e q u a l t r e a t m e n t , C ash a d ju s tm e n ts w i l l be made f o r
d if f e r e n c e s betw een th e p a r v a lu e o f m a t u rin g b i l l s a c c e p t e d ^ in
exch an g e and th e i s s u e p r i c e o f th e new b i l l s .
The income derived frcaft 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
supplementary thereto. The bills shall be subject, to estate,
inheritance, gift or other excise taxes, whether Federal or State,
but shall be exempt from all taxation now or hereafter imposed on
the principal or interest thereof by any State, or any of*the
possessions of the United States, or by any local taxing authority.
For purposes of taxation the amount of discount at which Treasury
bills are originally sold by the United States shall be considered
to be interest. Under Sections 42 and 117 (a) (l) of the Internal
Revenue Code, as amended by Section 115 of the’Revenue Act of 1941,
the amount of discount at which bills issued hereunder are sold
shall not be considered to accrue until such bills shall be sold,
redeemed or otherwise disposed of, and such bills are excluded
from consideration as capital assets. Accordingly, the owner of
Treasury bills (other than life insurance companies) issued here­
under 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 .
T r e a s u r y D epartm ent C i r c u l a r No. 4 l 8 , a s.a m e n d ed , and t h i s
n o t i c e , p r e s c r i b e th e term s o f th e T r e a s u r y b i l l s and g o v e rn th e
c o n d it io n s o f t h e i r i s s u e .
C o p ie s o f t h e ; c i r c u l a r may b e .o b t a in e d
from any F e d e r a l R e s e rv e B ank o r B r a n c h .

oOo

IMMEDIATE RELEASE
Thursday. July 21. 19^9

8*

0

^

0

Acting Secretary of the Treasury Foley announced today
that sales of Series E Savings Bonds In the recent
Opportunity brings Bonds Drive rsaohed |lf2l6f2]50f000*
This was

117

percent of the national quota of $1,040,000,000*

The Acting Secretary said;
#The Nation is to be congratulated on t

^

evidence

that the spirit of thrift sdttX is very much alive in America
"the success of the Drive was due primarily to the
work of the hundreds of thousands of volunteers who
gave it their energetic support* These volunteers Included
representatives of practically every field of Cie£»es& *
National Director Vernon L* Clark of the Treasury1«
Savings Bonds Division Joins me in extending hearty thanks
to these volunteers as individuals as well as to their

IMMEDIATE RELEASE
Thursday, July 21, 19^9

S- >
v

j

■■

1

p|

\§

Acting Secretary of the Treasury Foley announced today
that sales of Series S Savings Bonds in the recent
Opportunity Savings Bonds Drive reached 11,216,230,000.
This was 117 percent of the national quota of $l,o4o,000,000.
The Acting Secretary said:
"The Nation is>to be congratulated on this

evidence

that the spirit of thrift -fi.ti'V53: is very much alive in America.
nThe success of the Drive was due primarily to the ■
work of the huhdreds of thousands of volunteers who
gave it their energetic support. These volunteers included
representatives of practically every field of I w n ^ g c i o *
National Director Vernon L. Olark of the Treasury's
Savings Bonds Division joins me in extending hearty thanks
to these volunteers as individuals as well as to their
c o m m u n i t y S t a t e organizations."
/

^

IMMEDIATE RELEASE,
Thursday, July 21, 19^9 •

S-2060

Acting Secretary of the Treasury Foley announced
today that sales of Series E Savings Bonds in the
recent Opportunity Savings Bonds Drive reached
$1,216,230,000. This was 117 percent of the national
quota of $1,040,000,000.
The Acting Secretary said:
"The Nation is to be congratulated on this
further evidence that the spirit of thrift is very
much alive in America.
"The success of the Drive was due primarily to
the work of the hundreds of thousands of volunteers
who gave it their energetic support. These volunteers
included representatives of practically every field of
activity. National Director Vernon L. Clark of the
Treasury's Savings Bonds Division joins me in extending
hearty thanks to these volunteers as individuals as well
as to their community, State and National organizations."

0 O0

FOR IMMEDIATE BE3J&ASE
July 25, 19i*9

^

^

® C '(
\

The Bureau of Customs announced today that the tariff-rate quota
for the third quarter of the calendar year 19U9 on fish, fresh or
frozen (whether or not packed in ice), filleted, skinned, boned,
sliced, or divided into portions, not specially provided for:

cod,

haddock, hake, pollock, cusk, and rosefish, was approximately 90
percent filled as of July 22, 19U9*

Collectors of customs have been

instructed to require importers of such fish to deposit estimated
duties at the full tariff rate on all entries for consumption of
quota-class fish daring the period July 26 through September 30, 19h9
pending determination of the quota status of such importations*

IMMEDIATE RELEASE,
Monday, July 25'« 19^9 *

S-2061

The Bureau of Customs announced today that
the tariff-rate quota for the third quarter of
the calendar year 19^9 on fish, fresh or frozen
(whether or not packed in ice), filleted, skinned,
boned, sliced, or divided into portions, not
specially provided for: cod, haddock, hake,
pollock, cusk, and rosefish, was approximately
90 percent filled as of July 22, 1 9 4 9 . Collectors
of customs have been instructed to require importers
of such fish to deposit estimated duties at the
full tariff rate on all entries for consumption of
quota-class fish during the period July 26 through
September 30, 19^9, pending determination of the
quota status of such importations.

0 O0

REL8ASE MÜRHING NEWSPAPERS,
Tuesday. July 26 , 1949.

—

>»<m—I l■^Hl>^lll■ll II ■
■-Uli

—

The Secretary of the Treasury announced last evening that the tenders for
$900,000,000, or thereabouts, of 91-day Treasury bills to be dated July 28 and
v

to mature October 27, 1949, which were offered on July 22, were opened at the
Federal Reserve Banks on July 25«
The details of this issue are as follows:
Total applied for -$1,428,487,000
Total accepted
900,467,000 (Includes $66,327,000 entered on a non­
competitive basis and accepted in full
at the average price shown below)
Average price
- 99*743 Equivalent rate of discount approx, 1.017$ per annum
Range of accepted competitive bids:
High

- 99*775 Equivalent rate of discount approx. 0.890$ per annum
- 99*739
"
*
n
n
n
1,033$ "
»

Low

(49 percent 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

$

Total

'J

14,650,000

Total
Accepted

1,165,594,000
22,168,000
16,558,000
3,697,000
13,921,000
88,964,000
5,446,000
3,140,000
17,749,000
14,930,000
61.670,000

» 12,395,000
676,714,000
19,618,000
16,558,000
3,697,000
13,921,000
67,689,000
5,446,000
3,140,000
17,749,000
14,930,000
48^610*000

$1,428,487,000

$900,467,000

TREASURY DEPARTMENT
Information Service

WASHINGTON, D .C .

RELEASE, MORNING NEWSPAPERS,
Tuesday, July 26, 19^9-

,

The Secretary of the Treasury announced last evening that the
tenders for $900,000,000, or thereabouts, of 91-day Treasury bills
to be dated July 28 4nd to mature October 27, 19*9, which were
offered on July 22, wore opened at the Federal Reserve Banks on
July 25.
The details of this issue are as follows:
Total applied for - $1,428,487,000
900,467,000
Total accepted

Average price

(includes $0 6 ,3 2 7 , 0 0 0 entere
on a non-competitive "basis
and accepted in full at the
average price shown below)
9 9 , 7 4 3 Equivalent rate of discount approx.
1 .017 $ per annum

Range of accepted competitive bids:
- 99.775 Equivalent rate of discount approx.
0 .890 $ per annum
discount approx.
- 99-739 Equivalent rate
1.033$ per annum

High
Low
(49

percent of the amount bid for at the low price was accepted)
Total
Applied for

Federal Reserve
D istrict_______
$

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

14,650,000

I , 165,59*,000
2 2 .1 6 8 . 0 0 0
1 6 .5 5 8 . 0 0 0
3 .6 9 7 . 0 0 0

$ 12,395,000
676,714,000

19 ,618,000
16 ,558,000

5.446.000
3.140.000
1 7 .7 4 9 .0 0 0
14.930.000
6 1 .6 7 0 .0 0 0

3.697.000
13 , 921,000
6 7 .6 8 9 . 0 0 0
5.446.000
3.140.000
17.749.000
14.930.000
48.610.000

$1,428,487,000

$900,467,000

1 3 .9 2 1 .0 0 0
8 8 .9 6 4 . 0 0 0

TOTAL

Total
_____Accepted

0 O0

- 2 -

în connection with his conversations in London, the Secretary
stated it was the consensus that the problems raised there required
further consideration*

It was accordingly agreed that a meeting
V

would be held in Washington in early September to continue these
discussions.

S t e Canadian financial authorities participated in

the London talks And will also participate in the Vfashington talks.
Mr. Snyder left Washington Saturday, July 2nd and returned
early Monday morning, July 25th.

The Secretary *s first visit was

to Paris, followed in the order named by London, Brussels, Stockholm,
Geneva, Rome, Ankara, Cairo, and Athens.

p
PRESS RELEASE NO, > 6 ^ ^
FOR IMMEDIATE RELEASE

In his first statement made since his return from a three week
tour of European capitals, Secretary Snyder said today that the
progress of European recovery has in many respects exceeded earlier v
expectations*

Western Europe, he said,had made substantial progress

in increasing production and in raising levels of consumption*

Europe

as a whole, the Secretary said, does not appear to be encountering
difficulties in meeting its payments outside the dollar area.
But he emphasized that Europe must concentrate its efforts on
increasing dollar earnings*
In all of his talks, the Secretary stated that he reaffirmed the
importance of the role of the International Monetary Fund as the
appropriate forum for the discussion of exchange rates.
The Secretary repeated that, as announced before his departure,
the primary purpose^of his visit was to consult with U. S* Treasury
Representatives^*.G »iU officialsy^ J o * Diplomatic Representatx^SK^
and Foreign Government authorities in order to obtain a first-hand
picture of current economic and financial developments in Europe and
of the present thinking of European leaders*
With this purpose in mind, Mr* Snyder said he met and talked
with responsible financial officials in each capital visited*.

The

Secretary said that the officials with whom he talked assisted him
in obtaining a clearer understanding of economic and financial
developments•

TREASURY DEPARTMENT
Information Service

WASHINGTON, D .C .

IMMEDIATE REU&SE,
Mondayi July 25* 1949»

S-20'63

In his first statement made since his return from a three week tour of
European capitals* Secretary Snyder said today that the progress of European
recovery has in many respects exceeded earlier expectations* Western Europe*
he said* had made substantial progress in increasing production and in raising
levels of consumption* Europe as a whole* the Secretary said* does not appear
to be encountering difficulties in meeting its payments outside the dollar area*
But he emphasized that Europe must concentrate its efforts on increasing
dollar earnings*
In all of his talks* the Secretary stated that he reaffirmed the importance
of the role of the International Monetary Fund as the appropriate forum for the
discussion of exchange rates*
The Secretary repeated that* as announced before his departure* the primary
purpose of his visit was to consult with U* S* Treasury Representatives* U* S*
Diplomatic Representatives* E»C*A» officials* and Foreign Government authorities
in order to obtain a first*-hand picture of current economic and financial devel­
opments in Europe and of the present thinking of European leaders*
With this purpose in mind* Mr, Snyder said he met and talked with responsi­
ble financial officials in each capital visited. The Secretary said that the
officials with whom he talked assisted him in obtaining a clearer understanding
of economic and financial developments*
In connection with his conversations in London* the Secretary stated it was
the consensus that the problems raised there required further consideration*
It was accordingly agreed that a meeting would be held in Washington in early^
September to continue these discussions* Canadian financial authorities parti­
cipated in the London talks and will also participate in the Washington talks*
Mr. Snyder left Washington Saturday* July 2nd and returned early Monday
morning* July 25th. The Secretary!s first visit was to Paris, followed in the
order named by London* Brussels* Stockholm* Geneva* Rome* Ankara* Cairo* and
Athens.

oOo

IMMEDIATE r e l e a s e
July 27, 19k9

The Bureau of Customs announced today that the Mexican quota

of 8,883,2^9 pounds of cotton of less than 1-1/8 inches in staple
length (other than harsh or rough cotton of less than 3/k inch in
staple length, and other than linters) for the quota year ending
September 19, 19i*9, was approximately

98

percent filled by cotton

authorized entry at the close of business as of July 27, 19^9*

TREASURY DEPARTMENT
WASHINGTON. D .C .

Information Service

IMMEDIATE RELEASE,
Wednesday, July 27. 19^9 •

S-206 t

The Bureau of Customs announced
today that the Mexican quota of
8#883,259 pounds of cotton of less
than 1-1/8 inches in staple length
(other than harsh or rough cotton of
less than 3/4 inch in staple length,
and other than linters) for the quota
year ending September 19, 19^9, was
approximately 98 percent filled by
cotton authorized entry at the close
of business as of July 27, 19^9*

0

O0

i

purposes of taxation the amount of discount at which Treasury bills are originally
sold by the United States shall be considered to b@ interest,

Under Sections 1*2

and 117 (a) (1) of the Internal Revenue Oode^ as amended by Section ll£ of the
Revenue Act of 19U1,, the amount of discount at Yfhich 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 she taxable year for which the return is made, as
ordinary gain or loss.
Treasury Department Circular No. i|l8, 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

-

t i m

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 Y/hich public announcement will be made b y
the Secretary of the Treasury of the amount and price range of accepted bids.
Those submitting tenders vrill be advised of the acceptance or rejection thereof.
The Secretary of the Treasury expressly reserves the right to accept or reject
any or 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 Yfith the bids must be made or completed at the
Federal Reserve Bank on

August Uj 1$?U9

}

in cash or other immediately avail­

able funds or in a like face amount of Treasury bills maturing
Cash and exchange tenders will receive equal treatment.

August iu 19U9

Cash adjustments will be

made for differences between the par value of maturing bills accepted a n exchange
and the issue price of the

new

bills.

The income derived from Treasury bills, ymether 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
XJXXjL

TfiR RELEASE, MORNING NEWSPAPERS.
Friday, July 29, 19k9. _________

3

The Secretary of the Treasury, by this public notice, invites tenders for
$1,000,000,000

, or thereabouts, of

9 1 -day Treasury bills, for cash and

in exchange for Treasury bills maturing —August
U, 1 9 k 9
, 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

August U, 19li9

, and

November 3. 1 9 li9

, when the face amount will be payable without
15#
They will be issued in bearer form only, and in denominations of

$1,000, $5,000, $10,000, $100,000, $500,000, and $1,000,000 (maturity value).
Tenders Will be received at Federal Reserve Banks and Branches up.to the
Daylight Saving

closing hour, two o ’clock p.m., Eastern/fctepnfcnBfc time, Monday, August 1, 1 9 h 9
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
RELEASE, MORNING NEWSPAPERS,
Friday, July,29, 1949»

WASHINGTON,

D .C .

S-2065

The Secretary of the Treasury, hy this public notice, invites
tenders for $ 1 , 0 0 0 , 0 0 0 , 0 0 0 , or thereabouts, of 9'1-day Treasury
bills, for cash and in exchange for Treasury bills maturing
August 4, 1949, 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 4, .1 9 4 9 , and will ms,ture
November 3* 19^9* 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, $ 5 0 0 ,0 0 0 , and
$1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches
up to the closing hour, two o'clock p.m., Eastern Daylight Saving
time, Monday, August 1, 1949- Tenders will not be received at the
Treasury Department, Washington. Each tender.must be for an even
multiple of $1,000, and in the case of competitive tenders the
price offered must be expressed on the basis of 100, with not more
than three decimals, e. g., 99*925* Fractions may not be used. It
is urged that tenders be made on the printed forms and forwarded
in the special envelopes which will be supplied by Federal Reserve
Banks or Branches on application therefor.
Tenders will be received without deposit from incorporated
banks and trust companies and from responsible and recognized
dealers in investment securities. Tenders from others must be
accompanied by payment of 2 percent of the face amount of Treasury
bills applied for, unless the tenders are accompanied by an
express guaranty of payment by an incorporated bank or trust company.
Immediately after the closing hour, tenders will be opened at
the Federal Reserve Banks and Branches, following which public
announcement will be made by the Secretary of the Treasury of the
amount and price range of accepted bids . Those submitting tenders
will be advised of the acceptance or rejection thereof. The
Secretary of the Treasury expressly reserves the right to accept
or reject any or all tenders, in whole or in part, and his action
in any such respect shall be final. Subject to these reservations,
non-competitive tenders for $200,000 or less without stated price
from any one bidder will be accepted in full at the average price
(in three decimals) of accepted competitive bids. Settlement for

2
accepted tenders in accordance with the bids must be made or
completed at the Federal Reserve Bank on August 4, 19^9, in cash
or other immediately available funds or in a like face amount of
Treasury bills maturing August 4, 1949. Cash and exchange tenders
will receive equal treatment. Cash adjustments will be made foi\
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 (&) (l) of the Internal
Revenue Code, as amended by Section 115 of the Revenue Act of 1941,
the.amount of discount at which bills Issued hereunder are sold
shall -not be considered to accrue until such bills shall be sold*
redeemed or otherwise disposed of, and such bills are excluded,
from consideration as capital assets. Accordingly, the owner of
Treasury bills (other than life insurance companies) issued here­
under 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. 4l8, 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

PROPOSED PRESS REIEASE

Commissioner Frank Dow today appointed David B. Strubinger
to be Assistant Commissioner of Customs«
Mr. Strubinger, a career employee with 29 years of Govern­
ment service, has been with Customs since 1939* and his appointment
today is a promotion from the position of Chief of the Division of
Budget and Management.
Mr. Strubinger is 48 years old. He is a native of York,
Pennsylvania, but he has been a resident of the District of Columbia
for many years. He received his education at the George Washington
University, Benjamin Franklin University and National University,
and holds the degrees of Bachelor of Science and Bachelor of Laws.
The new Assistant Commissioner entered the Government service
with the Bureau of Census in 1920, moved to the Interior Depart­
ment in 1922, and the next year entered Treasury, in the Bureau of
Internal Revenue. He held a position of Chief Administrative
Investigator in that Bureau at the time he transferred to Customs
in 1939* as liaison officer. He later served as the Bureau*s
Budget Officer.
Mr. Strubinger is married and has one son, David B. Strubinger,
Jr., who is a student at the College of William and Mary, Williams­
burg, Va. The family resides at 4031 South Dakota Avenue, N.E.

TREASURY DEPARTMENT
Information Service

WASHINGTON, D .C .

IMMEDIATE RELEASE,
Thursday, July 28, 1949.

S-2066

Commissioner Prank Dow t©4.ay appointed David
B. Strubinger to be Assistant Commissioner of Customs.
Mr. Strubinger, a career employee with 29 years
of Government service, has been with Customs since
1 9 3 9 i and his appointment today is a promotion from
the position of Chief of the Division of Budget and
Management.
Mr. Strubinger is 48 years old. He is a native
of York, Pennsylvania, but he has been a resident of
the District of Columbia for many years. He received
his education at the George Washington University,
Benjamin Franklin University and National University,
and holds the degrees of Bachelor of Science and
Bachelor of Laws.
The new Assistant Commissioner entered the
Government service with the Bureau of Census in 1920,
moved to the Interior Department in 1922, and the next
year entered Treasury, in the Bureau of Internal
Revenue. He held a position of Chief Administrative
Investigator in that Bureau at the time he transferred
to Customs in 1939, as liaison officer. He later served
as the Bureau's Budget Officer.
Mr. Strubinger is married and has one son,
David B. Strubinger, Jr., who is a student at the
College of William and Mary, Williamsburg, Virginia.
The family resides at 4031 South Dakota Avenue,
Northeast.

0

O0

and used the contents of his wallet to identify himself when he cashed the
$150 in bonds at a Romney, W. Va., bank.

Nolan led officers to the scene

of the murder, where Woodridge*s body was found.

Nolan was sentenced to

life imprisonment and is confined in Richmond Penitentiary*
During the year the Secret Service completed investigations in 45*364
criminal cases and 1,735 non-criminal cases.

There were 2,346 persons

arrested for all offenses under Secret Service jurisdiction, and a total of
2,125 convictions, which included convictions in cases pending from prior
years*

-4-

Victims of forged Government checks paid heavily for failure to in­
sist upon full identification of strangers cashing checks*

The Secret

Service received for investigation 34*160 forged checks and 7*312 forged
Government bonds*

Agents completed investigations of 33*427 forged checks

totalling $2,255,829*63 and of 9*105 forged bonds with a maturity value of

$617,767* s|hoiio newr
a^ i Pn ^

.
There were 2001 Persons

arrested for check and bond forgery*
One bond forgery case turned up a murder and a confessed killer*
Jaires Thomas Nolan, 24, was arrested by police at Eomney* W. Va., after a
garage mechanic reported that Nolan carried a *32 calibre automatic pistol
in the 1947 Cadillac sedan which he drove*

Nolan admitted that he had

stolen $400 from his employers at Arlington, Va., and was returned to
Arlington to face embezzlement charges*
Investigation revealed that the Cadillac was owned by Belmont Woodridge,
a wealthy resident of Arlington, and that Nolan had cashed $150 in Savings
Bonds registered to Woodridge*

Secret Service agents investigating the bond

forgeries questioned Nolan, who said he had borrowed the car from Woodridge
when Woodridge went to Florida on a vacation*

Finally agents suggested that

tests be made to determine whether or not he had recently fired the weapon
found in the car.

Nolan then confessed that while riding with Woodridge on

November 11* 1948, he told Woodridge that he was a fugitive and demanded
that Woodridge give him the automobile*

When Woodridge objected, Nolan shot

him six times and dragged his body into the underbrush.

He robbed Woodridge

-3-

thrown there the evening before following an argument with Thomas L. Coffey.
Riley had hidden the coins in Coffey* s house and Coffey threatened to report
him.

In the ensuing quarrel Coffey, who had served prison terms for murder

and robbery, shot Riley in the back, but wounded him only superficially.
Riley has already served three sentences for coin counterfeiting.

He pleaded

guilty April 7 and was given a suspended sentence of 13 months,, but protested
to the Court that because of ill health he would be better off in jail.

The

judge revoked the suspension and sent Riley to the penitentiary for 13 months.
In California, two sets of brothers, all ex-convicts, were arrested Jan­
uary 21 by Secret Service agents from Los Angeles for manufacturing counter­
feit $20 notes in Hanford, California,

Plates and plant were captured in the

basement of a sign shop operated by Gordon and Clifford Vincent, both of
whom had served prison terms as bank robbers.

In the plant agents also

arrested Kenneth and Jack Alkire, who had served time on grand theft charges.
All pleaded guilty March 7 at Fresno.

Each of the Vincent brothers was sen­

tenced to five years and the Alkire brothers to terms of one year each.
Another counterfeiter was caught in California when Los Angeles police
arrested Robert H. White for check forgery and found a counterfeit $100 bill
in his pocket.

Secret Service agents questioned White, who finally admitted

that he and James T. Haines had manufactured the counterfeits.

On several

occasions White was called upon to reimburse victims of his worthless checks,
and paid them off with counterfeit $100 notes.

White was sentenced March 21

in Los Angeles to serve 15 years, later reduced to 10 years,
sentenced May 16 to serve five years.

Haines was

-a

In another case in Chicago on May 3 one man was shot by a Secret Ser­
vice agent and a second man was arrested, both charged with possession of
$100,000 in counterfeit $20 bills.

The wounded

was in a parked taxicab at the time of arrest.

’

3, 42,

35&(&ggB£s ordered M n

out

of the vehicle he made a move as though reaching for a gun. * ¿In agent shot
Also arrested was

hinv

Irving Morris, alias Irving Cohen, owner of the Tropical Nights Tavern,
2430 N. Clark Street, Chicago*
-tïv«men, according to Chief Baughman, was accomplished
after an undercover Secret Service agent won Richmond* s confidence and
successfully negotiated a delivery by Richmond of $100,000 in the counterfeit
$20 notes*

Prosecution is pending.

Most unusual case of the year was the capture. April 4»in New York City
of 105,400 counterfeit^5<p)postage stamps and the arrest of one woman and two
men charged with their possession.

Lillian Mizell, Philip Bonadonna and

Nicholas Ungano sold 20,000 of the stamps to an undercover agent and de­
livered an additional #5,400 at the time of their arrest in a midtown hotel.
All are awaiting prosecution.

This was the first case of postage-stamp

counterfeiting encountered by the Secret Service in several years*
One coin-counterfeiting case was solved by the counterfeiter after an
acquaintance had shot him In the back with a shotgun.

Joe Ernest Riley, 59,

gave himself up to Houston, Texas, police on March 13, claiming that he had
made and passed bogus half-dollars in Houston.

He led officers to a vacant

lot where they recovered 21 counterfeit j£0^y>coins which Riley said he had

PRESS RELEASE
U. S. SECRET SERVICE —

FISCAL YEAR 1949

Big-time counterfeiters responsible for a marked increase in the circulation of bogus bills have not yet learned that there is little or no
profit in home-made money, according to U, E. Baughman, Chief of the U. S.
Secret Service, in his yearly report to Treasury Secretary John W. Snyder,
made public today*
While storekeepers and cashiers lost $338,062*84 to passers of counterfeit bills and coins, Secret Service agents captured another $611,679*26 be-

w

fore it could be circulated, and arrested 207 persons for counterfeiting
offenses, Chief Baughman reported.

Arrests increased 31$ over the previous

year*
“Although a few old offenders may still be active,” he declared, “the
principals arrested in major cases were new to the currency counterfeiting
racket.

Gradually the manufacturers will discover that after paying «commis­

sions1 to distributors and other middlemen their net is too small to risk 15
years in prison*

The passers, who take most of the chances, pay highest

prices for the counterfeits and always get caught sooner or later.

The only

thing they may safely count on is substantial prison sentences.”
The arrest in Washington on June 27 of four men and a woman charged with
making about $150,000 in counterfeit $20 bills, bore out his statement, Chief
Baughman said*

Although they had a worthless fortune they managed to pass

only about $2,000 worth of the notes in a whirlwind air tour to several cities,
barely making traveling expenses*

The Secret Service captured a suitcase full ^ -

of notes, and the five are now awaiting prosecution*

U, S» Secret Service
Mr. James J. Maloney
Chief Coordinator
U. E. Baughman
Chief, Secret Service
Secret Service Press Release
Fiscal Year 1949

July 20, 1949

As requested in your memorandum of June 29, 1949» there is attached a
summary, in duplicate, of Secret Service activity for the Fiscal Year 1949
for transmittal to the Information Service for the press release«

TREASURY DEPARTMENT
Information Service
RELEASE, MORNING NEWSPAPERS,
Saturday, July 30, 1949.

WASHINGTON, D .C .

S-2067

Big-time counterfeiters responsible for a marked increase
in the circulation of bogus bills have not yet learned that
there is little or no profit in home-made money, according to
U. E. Baughman* Chief of the U. S. Secret Service, in his
yearly report to Treasury Secretary John W. Snyder, made public
today.
While storekeepers and cashiers lost $338,062.84 to passers
of counterfeit bills and coins, Secret Service agents captured
another $611,679.26 before it could be circulated, and arrested
207 persons for counterfeiting offenses, Chief Baughman reported.
Arrests increased 31$ over the previous year.
"Although a few old offenders may still be active," he
declared, "the principals arrested in major cases were new to
the currency counterfeiting racket. Gradually the manufacturers
will discover that after paying ’commissions’ to distributors
and other middlemen their net is too small to risk 15 years in
prison. The passers, who take most of the chances, pay highest
prices for the counterfeits and always get caught sooner or
later. The only thing they may safely count on is substantial
prison sentences."
The arrest in Washington on June 27 of four men and
a woman charged with making about $150*000 in counterfeit $20
bills, bore out his statement, Chief Baughman said. Although
they had a worthless fortime they managed to pass only about
$2,000 worth of the notes in a whirlwind air tour to several
cities, barely making traveling expenses. The Secret Service
captured a suitcase full of notes, and the five are now awaiting
prosecution.
In another case in Chicago on May 3 one man was shot by
a Secret Service agent and a second man was arrested, both
charged with possession of $ 100,000 in counterfeit $20 bills.
The wounded man, Dixie Richmond, 42, was in a parked taxicab
at the time of arrest. When he was ordered out of the vehicle
he made a move as though reaching for a gun, and an agent shot
him. Also arrested was Irving Morris, alias Irving Cohen, owner
of the Tropical Nights Tavern, 2430 North Clark Street, Chicago.

2
The arrest of the two men, according to Chief Baughman,
was accomplished after an undercover Secret'Service agent
won Richmond’s confidence and successfully negotiated a delivery
by Richmond of $100,000 in the counterfeit $20 notes. Prose­
cution is pending.
Most unusual case of the year was the capture, April 4,
in New York City of 105,^00 counterfeit three-cent postage
stamps and the arrest of one woman and two men charged with
their possession. Lillian Mizell, Philip Bonadonna and
Nicholas Ungano sold 20,000 of the stamps to an undercover
agent and delivered an additional 85,^00 at the time of their
arrest in a midtown hotel. All are awaiting prosecution.
This was the first case of postage-stamp counterfeiting
encountered by the Secret Service in several years .
One coin-counterfeiting case was solved by the counter­
feiter after an acquaintance had shot him in the back with
a shotgun. Joe Ernest Riley, 59^ gave himself up to Houston,
Texas, police on March 13, claiming that he had made and
passed bogus half-dollars in Houston. He led officers to
a vacant lot where they recovered 21 counterfeit fifty-cent
coins which Riley said he had thrown there the evening before
following an argument with Thomas L. Coffey. Riley had hidden
the coins in Coffey's house and Coffey threatened to report
him. In the ensuing quarrel Coffey, who had served prison
terms for murder and robbery, shot Riley in the back, but
wounded him only superficially. Riley has already served
three sentences for coin counterfeiting. He pleaded guilty
April 7 and was given a suspehdbd sentence of 13 months, but
protested to the Court that because of ill health he would be
better off in jail. The judge revoked the suspension and sent
Riley to the penitentiary for 13 months.
In California, two sets of brothers, all ex-convicts,
were arrested January 21 by Secret Service agents from
Los Angeles for manufacturing counterfeit $20 notes in Hanford,
California. Plates and plant were captured in the basement of
a sign shop operated by Gordon and Clifford Vincent, both of
whom had served prison terms as bank robbers . In the plant
agents also arrested Kenneth and Jack Alkire, who had served
time on grand theft charges. All pleaded guilty March 7 &t
Fresno. Each of the Vincent brothers was sentenced to five
years and the Alkire brothers to terms of one year each.
Another counterfeiter was caught in California when
Los Angeles police arrested Robert H. White for check forgery
and found a counterfeit $100 bill in his pocket. Secret
Service agents questioned White, who finally admitted that he
and James T . Haines had manufactured the counterfeits. On

\

<

- 3 several occasions White was called upon to reimburse victims
of his worthless checks, and paid them off with counterfeit
$100 notes. White was sentenced March 21 in Los Angeles to
serve 15 years,later reduced to 10 years. Haines was sentenced
May 16 to serve five years.
Victims of forged Government checks paid heavily for
failure to insist upon full identification of strangers
cashing checks, The Secret Service received for investigation
34,160 forged checks and 7,312 forged Government bonds. Agents
completed investigations of 33*^27
checks totalling
$2 ,255,829.63 and of 9,105 forged bonds with a maturity value
of $617,767. There were 2,001 persons arrested for check and
bond forgery.
One bond forgery case turned up a murder and a confessed
killer. James Thomas Nolan, 24, was arrested by police at
Romney, West Virginia, after a garage mechanic reported that
Nolan carried a .32 calibre automatic pistol in the 1947
Cadillac sedan which he drove. Nolan admitted that he had
stolen $400 from his employers at Arlington, Virginia, and was
returned to Arlington to face embezzlement charges.
Investigation revealed that the Cadillac was owned by
Belmont Woodridge, a wealthy resident of Arlington, and that
Nolan had cashed $150 in Savings Bonds registered to
Woodridge. Secret Service agents investigating the bond
forgeries questioned Nolan, who said he had borrowed the car
from Woodridge when Woodridge Went to Florida on a vacation.
Finally agents suggested that tests be made to determine
whether or not he had recently fired the weapon found in the
car. Nolan then confessed that while riding with Woodridge on
November 11, 1948, he told Woodridge that he was a fugitive
and demanded that Woodridge give him the automobile. When
Woodridge objected, Nolan shot him six times and dragged his
body into the underbrush. He robbed Woodridge and used the
contents of his wallet to identify himself when he cashed the
$150 in bonds at a ftoiMey, West Virginia, bank. Nolan led
officers to the scene of the murder, where Woodridge’s body
was found. Nolan was sentenced to life imprisonment and is
confined in Richmond Penitentiary.
During the year the Secret Service completed investigations
in 45,384 criminal cases and 1,735 non-criminal cases. There
were 2,346 persons arrested for all offenses under Secret
Service jurisdiction, and a total of 2,125 convictions, which
included convictions in cases pending from prior years .
0O0

SI -

- 5-

Enforcement of export control regulations of the
Office of International Trade, Department of Commerce,
brought seizures of numerous shipments of strategic and
scarce commodities, ranging from streptomycin to carbon
black.

More than a million pounds of the latter commodity,

valued at $150,000, was seized at Houston, Texas, on
April 7, 19^9-

aiiplanuu

■fond f1re-arma,wejg^^ma^e for attftnrp*-^
tar

the—

^iSde at Norfolk, cohBy^aksd

.WS3TOs"T"pTstoa

,
irithmrl -

- k -

Then there was the youth who rode a stolen bicycle
across the Canadian line at an unguarded point, and
embarked on a one-man crime wave, one of his victims
being a Customs officer whose home was looted.

The

officer got some personal satisfaction when police ended
the soiree by seizing the bicycle for forfeiture to
Uncle Sam -- unless the rightful owner can be found.
Other Customs investigations involved livestock
and grain smuggling on both borders, illegal halibut
catches (under the North Pacific halibut fishing
regulations of the International Fisheries Commission),
and numerous instances of suspected undervaluation of
merchandise. Typical of the latter was a case in which

630 petit point hand bags were entered at a value of
$900, and proved to be worth $25,000.

The importer paid

$22,000 in penalties.
Enforcement of maritime laws produced seizure of
several yachts licensed as pleasure craft, which were put
to commercial use without proper documentation, and one
craft valued at a quarter of a million dollars was
detained for suspected false documentation and sale and
charter to an alien without authority of the United States
Maritime Commission.

Heroin and cocaine figured prominently in Customs
seizures of narcotic drugs, more than 18 pounds of
Peruvian cocaine having been captured, compared to
10 ounces in 1948.

Marihuana seizures showed a large

increase over those of the previous year, captu:
the weed by Customs Arlene on the Mexican border
quantity seized throughout the United
States in fiscal year 1948.
In the Customs "why will they do it" category were
numerous seizures of meat products, plants and fruit
which Mexican border travelers tried to

in

violation of Department of Agriculture regulations
designed to prevent introduction of plant and animal
diseases, or insects.
Parrots,.prohibited entry under Public Health laws,
also proved irresistible to some border-crossers.

In

one case, "two red-headed parrots under one year of age"
were walked across in the coat pockets of a youth,
who parked the garment in a cafe and then returned to
Mexico for his car and his mother for regular customs
clearance. He neglected to remove facilities for carrying
the birds from his luggage, and questioning uncovered the
facts. Another tourist tried to run "Poor Polly" in under
the hood of his automobile.

2
United States from Hong Kong.

She failed to declare

goods having a value of more than $4,000 which were in
her baggage and on her person.

A large part of the

seizure consisted of jewelry which had been sewn into
shoulder pads and linings of clothing.
In San Francisco, Customs officers seized 16
packages of goods from the Orient which a crew member
of an American vessel attempted to enter by subterfuge
to avoid duty, allegedly for sale in a store he owns.
He attempted to take advantage of exemptions by splitting
up the goods, and enlisting fellow crew members who at
first identified the merchandise as their own purchases
abroad.
There was little evidence of any large-scale
smuggling of liquor, but numerous "amateurs" with a
bottle or two of undeclared spirits concealed in cars
and in luggage paid penalties at border points.
Sentencing of two offenders on pleas of guilty in
Federal Court at San Juan closed out a smuggling case
that did have many of the characteristics of the old rumrunning days, oaijf in this case the contraband consisted
of untaxed cigarettes. The investigation involved
cooperation with the Coast Guard in ship's surveillance
at sea, and boarding and seizure of the vessel as it
entered United States waters .

PROP«
I

W

U

Mss.^el3y:.......... .......... ... -

. . J

1 at)
■tions

Attached is the draft of the Annual

figUlB
Report of the Customs Bureau.on enforcement

durii*
activities which is submitted herewith for

of c J

r

'

the Secretary*s clearance#

An irl
I have deleted a section on page 5

¥

the yl
having to do with confiscation of arms

of thl
shipments•

New y |
emploi
technl

was gl
in a I
two pi
under!
a wornl
seizul
INFORMATION SERVICE

^ura

ing at Honolulu, and one at San Francisco.

In each

instance jewelry and novelty items of high dutiability
were involved.

In the Honolulu case the would-be smuggler

was a Chinese woman returning by plane to her home in the

PROPOSED CUSTOMS PRESS RE
UJ-L**#-1 Qm ,A

"

3(

I *f &f

ft

Diamond and jewelry seizures of commercial proportions
figured prominently in Customs law enforcement activities
during the fiscal year ended June 30* 19*1-9* Commissioner
of Customs Frank Dow reported to Secretary Snyder today.
An interesting feature of Customs investigations during
the year is the fact that women were offenders in many
of the more important cases.
Three large diamond seizures made at the port of
New York involved women passengers arriving by air, all
employing variations of the old false-bottomed luggage
technique.
In the final month of the year, one of these offenders
was given a sentence in Federal Court of a year in prison,
in a case involving gems worth $73*000.

Also in June,

two parcels of cut diamonds valued at $13*000 were found
underneath a false bottom of a suitcase brought in by
a woman plane passenger.

A third case arising from the

seizure of $190,000 worth of diamonds is awaiting trial.
Oriental merchandise in "wholesale"

quantities

figured in two Pacific area seizures, one case develop­
ing at Honolulu, and one at San Francisco.

In each

instance jewelry and novelty items of high dutlability
were involved.

In the Honolulu case the would-be smuggler

was a Chinese woman returning by plane to her home in the

TREASURY DEPARTMENT
Information Service

RELEASE, MORNING NEWSPAPERS
Wednesday, August 3, 19^9«

WASHINGTON, D .C .
'!

1"L . * : ' >k \ ’

•;• *.■ 1 *

S-2068

Diamond and jewelry seizures of commercial\proportions
figured prominently in Customs law enforcement activities
during the fiscal year ended June 30, 19^9* Commissioner of
Customs Prank Dow reported to Secretary Snyder today. An
interesting feature of Customs investigations during- the
year is the fact that women were offenders in many of the
more important cases.
Three Targe diamond seizures made at the port of New' York
involved women passengers arriving by air, all employing
variations of the old false-bottomed luggage technique'.
In the final month of the year, one of these offenders,
was ,given a sentence in Federal Court of a year in pri'soh/f A
in a ¡case ^involving gems worth $73,000. Also in June, two
parcels of cut diamonds valued at $ 13,000 were found under­
neath a false-bottom of a suitcase brought in by a womanplane passenger. A third case arising from the seizure of
$ 190,000 worth of diamonds is awaiting trial.
Oriental merchandise in "wholesale” quantities figured
in two Pacific area seizures, one case developing at
Honolulu, and one at San Francisco. In each instance jewelry
and novelty items of high dutiability were involved. In the
Honolulu case the would-be smuggler was a Chinese woman
returning by plane to her home in the United States from
Hong Kong. She failed to declare goods having a value of more
than $4,000 which were in her baggage and on her person.
A large part of the seizure consisted of jewelry which had
been sewn into shoulder pads and linings of clothing.
In San Francisco, Customs officers seized 16 packages of
goods from the Orient which a crew member of an American
vessel attempted to enter by subterfuge to avoid1duty,
allegedly for sale in a store he owns. He attempted to take
advantage of exemptions by splitting up the goods, and enlisting
fellow crew members who at first identified the merchandise as
their own purchases abroad.

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There was little evidence of any large-scale smuggling
of liquor, hut numerous "amateurs" with a bottle or two of
undeclared spirits concealed in cars and in luggage paid
penalties at border points.
Sentencing of two offenders on pleas of guilty in
Federal Court at San Juan closed out a smuggling case that
did have many of the characteristics of the old rum-running
days, except that in this case the contraband consisted of
untaxed cigarettes* The investigation involved cooperation
with the Coast Guard in ship’s surveillance at sea, and
boarding and seizure of the vessel as it entered United States
waters.
Heroin and cocaine figured prominently in Customs
seizures of narcotic drugs, more than 18 pounds of Peruvian
cocaine having been captured, compared to 10 ounces in 1948.
Marihuana seizures showed a large increase over those of the
previous year, captures of the weed by Customs on the Mexican
border alone having been almost double the quantity seized
throughout the United States in fiscal year 1948.
In the Customs "why will they do it" category were
numerous seizures of meat products, plants and fruit which
Mexican border travelers tried to import, in violation of
Department of Agriculture regulations designed to prevent
introduction of plant and animal diseases, or insects.
Parrots, which are prohibited entry under Public Health
laws, also proved irresistible to some border-crossers. In
one case, "two red-headed parrots under one year of age" were
walked across in the coat pockets of a youth, who parked the
garment in a cafe and then returned to Mexico for his car and
his mother for regular customs clearance. He neglected to
remove facilities for carrying the birds from his luggage,
and questioning uncovered the facts. Another tourist fried
to run "Poor Polly" in under the hood of his automobile.
Then there was the youth who rode a stolen bicycle
across the Canadian line at an unguarded point, and embarked
on a one-man crime wave, one of his victims being a Customs
officer whose home was looted. The officer got some personal
satisfaction when police ended the soiree by seizing the
bicycle for forfeiture to Uncle Sam -- unless the rightful
owner can be found.

- 3 Other Customs investigations involved livestock and
grain smuggling on both borders, illegal halibut catches (under
the North Pacific halibut fishing regulations of the
International Fisheries Commission), and numerous instances
of suspected undervaluation of merchandise. Typical of the
latter was a case in which 630 petit point hand bags were
entered at a value of $900, and proved to be worth $25,000.
The importer paid $22,000 in penalties.
Enforcement of maritime laws produced seizure of several
yachts licensed as pleasure craft, which were put to commercial
use without proper documentation, and one craft valued at
a quarter of a million dollars was detained for suspected
false documentation and sale and' charter to an alien without
authority of the United States Maritime Commission.
Enforcement of export control regulations of the Office
of International Trade, Department of Commerce, brought
seizures of numerous shipments of strategic and scarce com­
modities, ranging from streptomycin to carbon black. More
than a million pounds of the latter commodity, valued at
$150,000, was seized at Houston, Texas, on April 7 , 1949.

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