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¡RARY
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w „ 141972
TREASURY DEPARTMENT
Division of Personnel
Recruitment & Placement Section
Miss Aylesworth
Miss Bernd
___ Miss Clem
___ Mr. Ferguson
Miss Kleinschmidt
Mr. Lindbeck
Mr. McHugh
___ Mrs. Wolking
File Room
From
Date
pnOM 5030
IUN 141972
TREASURY DEPARTMENT
*
£
I
•»
for you boys ana girls
the future
citizens of America -- which »! I I
insure a peaceful world -- a prospers
world -- a world of free men
course, there are situations
that recuire constant watchfulness.
fie
in t
t to strengthen the
exert
’¡ö*C*
y
wPfel Ä
•ve
, JSfl - w--
SU' *
must
te national
aoeq
ma
must
un Îte as never
Sua •
in
came in
solving
«r's aftermath
st strive constantly to
s ions and-do the things
qu
«gl
sure that these fine human
qualities were deve!
long ago to
tne ni¿nest perfection
that no device of
e, ana
electronic age
can improve them
As a Nation, we
maae rapio
strides toward ful I recovery from the
sets
of
â
and costly war.
credit structure is in & strong and
healthy position.
■
are bui
never before, ana the op or tuni ties
for tne future appear iimi tless.
Our
rutted trails over which his oxcart
-
I5
advances in agriculture and industry.
its roads and schools and homes are
d
, after
tion's finest
the world,
convI need
place under
M
rather
ft
primitive settler, wh
dialogue and music of
Traveler,” has
19
Arkansas
since moved on.
The fert i11ty of
eroded fields
of his time
restored, and
replaced the
/
14
of individuals -- upon their ability
to work harmonIousIy together in
pursuits and causes of common
interest.
These characteristics --
ingenuity and unity -- enabled us to
make our great contribution to
victory in the recent war; and, when
applied on an internet IonaI scale,
they will help us to maintain our
leadership among the nations of the
world.
These same characteristics have
made possible Arkansas* notable
its support to the Nation’s farmers,
I am convinced that the genius of
the individual has been of greatest
importance in achieving the marked
changes that have taken place in
Jonesboro,
in Craighead County, and
throughout our country during recent
years.
Government may create a
favorable atmosphere for
achievement -- but,
in the final
ana lysis, the success of any venture
is based largely upon the ingenuity
of the farms you 4-H members
represent -- without your energy
and enthusiasm and vision -- the
arteries of trade would wither, and
the cities of the land would vanish.
The Cooperat ive Farm Extens ion
Program in which 4-H clubs are
affiliated, has been an important
factor in bringing the farms of
Eastern Arkansas to their present
fine production.
County, State and
Federal Governments have joined forces
10
farm did not hold sufficient promise
for the future.
So they migrated
to the cities, not realizing, as do
you 4-H Club members, that making
two ears of corn or two stalks of
cotton grow upon a spot where only
one grew before, presents as great
a challenge as any ordinarily
encountered in business or industry
or statecraft.
But in the light of
more mature understand ings, they now
realize that without the production
**§
3
m
of the State Legislature.
But all
of us are aware that the "Wonder
State" as we know it today was
actually created long before that
date by young people like you, who
lived on Arkansas farms and in
Arkansas' fine towns and communities.
Many of the members of my
generation fell victim to the notion
of the times that greater opportunity
lay in the large centers of
population -- that the small town and
As a native of Jonesboro,
my pride in the boys and girls
of Craighead County is
understandable.
personal
But, abandoning
interest,
I can say to
you in all sincerity that
Arkansans are deeply grateful for
the work you have done and are
doing.
Back in 1927, Arkansas was
named the "Wonder State" by action
7
st in world activities
is reflected in the recent Iy - inaugurat
Internationa
ojee t
Youth Exchange
- a
ar
enabled forty-eight 4
members
and brought young
farm neon Ie from nine European countri
to America.
have a very deep feeling that
s group
girls from our
tion’s farm communities const
a most effect ive dipi ornat ic mission
6
the wholesome philosophy of 4-H has
taKen firm hold.
Requests,
1 am
to Id, are coming in from far-away lands
for advice in forming clubs.
Typical
of the spread of this worx was the
recent organization of a club of
fifty-five members on the Island of
(C h a m o m
o )—
Saipan by a native agricultural
as a st
worKer,
the University of
Hawaii, had become familiar with
modern farming techn icues, and the aim
and objectives of the 4-H organjzation,
*
greater importance is that part
of the 4-H program which stresses
good health, the sharing of
responsibiIity for community
improvement; and the necessity for
maintaining peaceful and friendly
relations among the nations of
the world.
Yours is the largest ruraI youth
organization in the world today.
membership
its
last year was almost two
million strong, and since the first
and the entire membership of the
Dixie Club, »hose group and
individual achievements have made
the irs the outstanding 4-H organ I?
in the county.
And Billy Pugh,
president of the Craighead County
4-H Club Council, deserves
spec is I commendation for the able
manner in which he is presiding
over this meeting.
Surely no finer program fits
..ever been devised than that being
iti.
I am hapoy to join
ions
TREASURY DEPART!:!
BENT
WASHINGTON
The following address by Secretary Snyder
at the Fifth Annual Craigiihead County 4-H
Club Banquet, CeHrijuTlo Hall, Jonesboro,
Arkansas, is scheduled for delivery at
7:00 p.m., CUT/*jfonday, May 29, I9lj)0, and
is for release at thal time»
A 3 W
TREASURY DEPARTMENT
WASHINGTON
The following address by Secretary Snyder
at the Fifth Annual Craighead County 4-H
Club Banquet 5 at Jonesboro, Arkansas, is
scheduled fo_r delivery at 7:00 p.m., CST,
on Monday, May 29, *1959, and is T o r
release at t h a t i m e «
I
am happy to join with the people of my home town in
honoring these outstanding 4-H Club members — boys and girls
who are making such a fine contribution to their community,
their State and Nation* My warmest congratulations are
extended to the central figures at tonight1s banquet —
Craighead CountyTs 4-H Club champions, Alma Jean Boley of
Herman, and Virgil Griffin of Otwell; and the entire member
ship of the Dixie Club, whose group and individual achieve
ments have made theirs the outstanding 4-H organization in
the county. And Billy Pugh, president of the Craighead
County 4-H Club Council, deserves special commendation for
the able manner in which he is presiding over this meeting.
Surely no finer program has ever been devised than that
being carried forward by 4-H clubs. With the encouragement
and aid of such adult groups as the County Farm Bureau, 4-H
develops among its members those qualities of character which
are so essential for useful citizenship* They are taught how
to create better homes for better living — how to conserve
Nature!s resources for security and happiness -- how to pro
duce more abundant crops. But of equal or greater importance
is that part of the 4-H program which stresses good health,
the sharing of responsibility for community improvement; and
the necessity for maintaining peaceful and friendly relations
among the nations of the world.
Yours is the largest rural youth organization in the
world today.
Its membership last year was almost two million
strong, and since the first 4-H Club was organized, over
thirteen and a half million boys and girls have benefited by
its teachings -- and the Nation has been greatly strengthened
through its accomplishments.
S-2349
-
2
-
The fo.ur-leaf-clover emblem, representing your motto of
"head, heart, hands and health" went along with American
forces during the recent World War.
In Japan, the islands
of the Pacific, and Yves tern Germany, the wholesome philosophy
of 4-H has taken firm hold. Requests, I am told, are coming
in from far-away lands for advice in forming clubs. Typical
of the spread of this work was the recent organization of a
club of fifty-five members on the Island of Saipan by a
native agricultural worker, who, as a student at the
University of Hawaii, had become familiar with modern farming
techniques, and the aims and objectives of the 4-H organiza
tion*
Your interest in world activities is reflected in the
recently-inaugurated International Farm Youth Exchange
project — a project which last year enabled forty-eight 4-H
Club members to go to Europe, and brought young farm people
from nine European countries to America.
I have a very deep feeling that this group of boys and
girls from our Nation’s farm communities constituted a most
effective diplomatic mission.
As a native of Jonesboro, my pride in the boys and girls
of Craighead County is understandable. But, abandoning per
sonal interest, I can say to you in all sincerity that
Arkansans are deeply grateful for the work you have done and
are doing.
Back in 1927, Arkansas was named the "Yiionder State" by
action of the State Legislature. But all of us are aware that
the "Wonder State" as we know it today was actually created
long before that date by young people like you, who lived on
Arkansas farms and in Arkansas’ fine towns and communities*
Many of the members of my generation fell victim to the
notion of the times that greater opportunity lay in the large
centers of population — that the small town and farm did not
hold sufficient promise for the future. So they migrated to
the cities, not realizing, as do you 4-H Club members, that
making two ears of corn or two stalks of cotton grow upon a
spot where only one grew before, presents as great a challenge
as any ordinarily encountered in business or industry or state
craft. But in the light of more mature understandings, they
- 3 now realize that without the production of the farms you 4-H
members represent — without your energy and-enthusiasm and
vision — the arteries of trade would wither, and the cities
of the land would vanish.
The Cooperative Farm Extension Program in which 4-H
clubs are affiliated, has been an important factor in bring
ing the farms of Eastern Arkansas to their present fine
production»
County, State and Federal Governments have
joined forces, here and all over the country^ to help farm
people with their problems — to teach them the values of con
servation, crop rotation, and livestock improvement« The
development of Rural Electrification has made electricity the
servant of the farm and the farm home. And a system of price
supports has removed some of the elements of chance from the
business of agriculture.
While the government has lent its support to the Nation’s
farmers, I am convinced that the genius of the individual has
been of greatest importance in achieving the marked changes
that have taken place in Jonesboro, in Craighead County, and
throughout our country during recent years. Government may
create a favorable atmosphere for achievement — but, in the
final analysis, the success of any venture is based largely
upon the ingenuity of individuals
upon their ability to
work harmoniously together in pursuits and causes of common
interest. These characteristics -- ingenuity and unity —
enabled us to make our great contribution to victory in* the
recent war; and, when applied on an international Scale, they
will help us to maintain our leadership among the nations of
the,, world.
These same characteristics have made possible Arkansas’
notable advances in agriculture and industry.
Its roads and
schools and homes are among the Nation’s finest and, after
having seen a good part of the world, I am convinced there is
no place under the sun I had rather call "home," The primi
tive settler, who inspired the dialogue and music of "The
Arkansas Traveler,?f has long since moved on« The fertility
of the eroded fields of his time has been restored, and allweather roads have replaced the rutted trails over which his
©xcart passed in the long ago, A modern school occupies the
site of his log cabin, and a factory has been built where the
old fellow swapped yarns with, passersby.
- 4 Business and industry here have kept pace with t h e •
NationTs forward march, Arkansas has seen many changes, but
the people themselves retain the friendliness and hospitality
for which they have always been noted,
I feel quite sure
that these fine human qualities were developed long ago to
the highest perfection possible, and that no device of the
electronic age can improve them.
As a Nation, we have made rapid strides toward full
recovery from the effects of a long and costly war. Our
credit structure is in a-strong and healthy position. We are
building as never before, and the opportunities for the future
appear limitless.
Of course, there are situations that-require constant
watchfulness.
In the international field, we must exert every
effort to strengthen the forces working for peace. We must
maintain adequate national defenses. We must unite as neverbefore in solving the problems which came in w a r fs aftermath,
both at home and abroad. Above all, we of the older genera
tion must strive constantly to make the decisions and do the
things for you boys and girls — the future citizens of
America — which will insure a peaceful world — a prosperous
world — a world of free men«
- 0Q 0-
3 T _
I P » «
9-
3
MQKNIiiG f l p H | S J P W »
Jtete. Jto, 30« 1950._ ^
The Secretary oi the Treasurer iimowiisl last evening that the tenders for
$1,100*000*000* or thereabouts, of 91-day Treasury hills to he dated «lone 1 and
to mature August 31# 1950* which were offered m
May 26* were opened at the
Federal Reserve Banks on Ifey 29*
the details of this Issue are as follows:
Total applied for - $ 1*714*664*000
Total accepted
- 1*103*908,000 (includes $89*132*000 «stared on a noncompetitive basis and accepted in full
at the average price shown below)
Average price
- 99.705 Equivalent rate of discount approx. 1*169$ per annua
Bangs of accepted competitive bids:
8i«h
Low
(48
* 99.709 Equivalent rate of discount approx* 1*151$ per annua
-99*703
*
*
* /
*
*
1.175$ *
percent of the amount hid for at the low price was accepted;
Federal Reserve
Msteiet
Total
Applied for
Total
Accented
Boston
hew York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St* Louis
Minneapolis
Kansas City
Balias
San Francisco
I
10,128,000
1,332,3*6,«)
39,934,000
32*016,000
4,913*000
7,153,000
163,766,000
9,882*000
7,571,000
28,274,000
30,510,000
___ 46.169.000
1
_
«1,714,664,000
$1*103,908,000
Total
9,626,000
609,646,000
32*154,000
28,792*000
4,913,000
6,633,000
109,728,000
8,690,000
7*571*000
27,234,000
25,310,000
33,609.000
T R E A S U R Y
D EP A R T M EN T
WASHINGTON, D .C .
Information Service
RELEASE, MORNING NEWSPAPERS,
Tuesday. May 30. 1950*_____ _
S-2350
The Secretary of the Treasury announced last evening that the tenders for
$1,100,000,000, or thereabouts, of 91-day Treasury bills to be dated June 1 and
to mature August 31, 1950, 'which were offered on May 26, were opened at the
Federal Reserve Banks on May 29*
The details of this issue are as follows:
Total applied for - $1,714*684,000
Total accepted
- 1,103,908,000 (includes $89,132,000 entered on a non
competitive basis and accepted in full
at the average price shown below/)
Average price
, - 99*705 Equivalent rate of discount approx. 1*169$
per annum
Range of accepted competitive bids :
High
- 99*709 Equivalent rate of discount approx« 1.151$
per annum
- 99*703 Equivalent rate of discount approx 1.175$
per annum
Low
(48 percent of the amount bid for at the low price was accepted)
Federal Reserve
District
Total
Applied
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St,. ‘Louis
Minneapolis
Kansas City
Dallas
San Francisco
$
10,128,000
1,332,346,000
39,954,000
32,016,000
4,913,000
7,153,000
163,768,000
9,882,000
7,571,000
28,274,000
30,510,000
48.169T000
Total
or
$1,714,684,000
oOo
Total
Accepted
$
9 ,628,000
809 ,646,000
32 ,1 54,000
28.792.000
4.913.000
6.633.000
109,728,000
.8,690,000
7,571,000
27.234.000
25.310.000
33.609,000
$1,103,908,000
We believe in democracy; we
believe in freedom; we believe in
peace.
It is our respons ib iIity -- our
very great opportunity -- to prove to
men ana women everywhere that the
American system of free enterprise,
»hi eh is based on these beliefs, can
accompIi sn more than any other system
on the face of the earth.
1 19 8
economy been stronger -- never before
have our opportuni t ies for further
growth been more evident
of our
resources
development of our natura I resources.
m
gone a ion 6
years
mus
continue to work closely together in
order that the achievements of the
future may compensate for and reward
the great sacrifices of the past.
r
**■*
s strength
Wfe■
vi
mmu n¡ties.
So Arkansas has r
of readjustment, but ¡1
ln
greater
fa i
your faiien heroes.
ith
You
jSsp
Nation stron
v ita
our best
of a peaceful and prosperous
Never be
c
Aueri can
- IT
s, and more p
better
farms.
As a single exaiff
enterprise,
b u s Înesses
I, w
have been added, providing nearly
000 new jobs, and industries
continuing to locate
of around 500 a
as never
farmers.
your
s .
tradesmen
together to ”bui Id
their own
towns* -- good towns
like Forrest City -- in
Idenca
forests, mineral deposits and streams.
With the same courage that characteriz<
your fighting men in uniform, you
accepted this great new challenge and
went to work -- united, as never
before,
in a common purpose.
The resuIts lie on
industri a I output
new homes;
proauction; hundreds of miles of
newly-paved roads; new sources of
e lectric
schools,
m ine
1.5
-
Arkansas was a leader In this
nation-wide effort to bridge the
economic canyon
and peace.
The people of Arkansas
to see that business
and Government work together as a
team -- not just to maintain the gains I
already achieved, but to move forward
in ¿ever-greater growth.
I
The necessitiell
of war had awakened Arkansas to the
I
possibilities which for a century had
I
i
lain dormant in the State's fields.
- 1 4 -
a crucial economic test.
Under the
pressure of wartime activities, our
economy had grown to unprecedented
heights.
Could such a high level of
wartime productivity be converted
into secure peacetime production? -that was a question the country had
to answer.
In the presence of Governor McMatl
and other distinguished guests from al
over the State,
let me say with the
excusable pride of a native, that
supreme sacrifice
Guard,
the Army, Navy,
and Air Forces in
opposi te sides of
The ir
victor ies
which built America
-
12
- I I -
a Si.nal Corps private, oblivious
of personal danger, climb a telegraph
pole under direct enemy fire.
Patton
asked him what he was doing on the
pole at a time like that.
’’Fixing
the wire,” the soldier replied.
"Isn't it pretty unhealthy right now?"
the officer inquired.
"Yes, sir,
is," the boy answered,
"but this
it
blasted wire's gotta be fixedi"
Members of the forces which today
fight for permanent peace should be
peace, we must adequately maintain
our defenses -- we must rot tee sure
that no aggressor nation threatens
the freedoms we have purchased at
such a great price.
In describing the soirit that
made the American soldier the ablest
fighting man in the world, the late
General George Patton told this
impressive story:
When our troops were driving
across North Africa, the Genera I saw
~ 9 -
nations -- a monument upon which we=w
tV-i
look with adm irat ion*4tee#«=r.
Our country is working, as never
before, for the causes of peace.
know that the prosperous country is
not the war-torn country -- but the
one that devotes its energies to
constructive building, to the
development of its resources, to the
betterment of its institutions,
But
untiI ail of the nations of the earth
1Ilf.»fifefS
jgjw?
join with us in our quest for
mg
. . . . . - - ^ 7^
B » •?'*
hi« '»tj'■
-
8
-
memory has erected an invisible
monument to your war dead -- this
ÜP
I
memorial of stone has been built in
order that future generations may know
of their heroic
.
There is,
however, a Wgreater and more lasti
monument to the heroic
of every
war in which we have engaged since
mQWÊÊïuÂ',
the Republic was founded.
It is this
Hi '• *:
broad country of ours ■*- still
still vital, still a land of opportuni
still
tests?
the leader among all the
America the strongest nation in the
world -- her people the happiest.
They bravely carried the standards
of decency across wide oceans and
strange continents; sacrificing life
itself that our own liberties might
be preserved -- and in order that
people everywhere might be given
opportunity to enjoy a way of life
which has been ours since the birth
of the American Republic.
in the hearts of each of you,
~
8
■m
his life i.n Germany; and Ralph Beazley,
whose life was sacrificed in the
Western Carolines.
These were sons
of old friends of mine, Frank King
and J.
Beazley, who, with me,
nad no thoughts when 1 left Forrest
City twenty-six years ago that we
would ever be engaged in a second
worI a confI let.
The men honored by this memorial
died in defense of those ideals of
justice any freedom which have made
-
0
-
fresh in everyone's memory.
Engraved in the gran ite of this
impressive memorial are one hundred
and nine names -- familiar American
names like Allen, Andrews, Ferguson,
Hall, Williams and Young -- all
St. Francis County men who failed to
- •I M M t I
4
return home from the great frars.
Listed in this roster of heroes are
H
•.
the names of the two Forrest City boys
for whom your Legion Host has been
renamed -- Frank King, Jr., who gave
the
(T ie n
who
crossed the Rhine in
As a member of the Exped it ionary
111
Forces of 1917-1919,
I personally
know something of the bravery and
spirit of the men from this area
who fought in the first World War.
And the heroic deeds of Arkansas-born
iers, sailors and marines
who
gave their strength to more recent
victories of our forces on the coral
Ü
beaches of the Pacific and in the
hedgerows of Normandy »- are stil
5
democracy -- and the troops of
Arkansas had returned to their homes
with new garlands of victory on their
battle standards,
Guadalcanal and Attu, the Normand
Beachhead ana the Burma Road, Anzio,
the Belgian Bulge, Okinawa and Iwo Jiffl
had never been heard of.
They were
the battlefields of the future -- the
strong points of another world war to
be stormed and conquered a
quarter-century later by the sons of
¿reatly 1
re turn
&
cr %
ifliiff“a
H#?' ft It*
The King-fc
Atitr
s sponsoring
ceremonies, »-as
Forrest City P
Stt»
•jM
****.•'«
o.:r
i
IQ
one of its char
oe I
1
<*«? #
at was in the days,
as
%i i I re »Tie
B
p# W
hjti
■< K f c d
J
w
-Iniif
Ie
au
Wood,
offensive.
T
€n
H# %,
O * *>■*at ■Ao r
the
**-11ifftfe
a 'a
s
You have accorded me a great
honor by inviting me to attend these
ceremonies in connection with the
dedication of this beautiful war
memorial -- this monument you have
erected to honor the brave men from
St. Francis county who gave their
lives in the two World Wars.
Forrest City is a second home
to me, and the presence in this
assembly of so many friends, made
during the years I spent here, adds
pi
W
S
S I SECRETART STOSS
AT EEDOEATIOil 0?, HAR MHORIAL
I
I
r a m » * c ijr i, Arkansas
Ä«.
fcrr)
my
30 ,
9150
1É
TREASURY DEPARTMENT
Washington
The following
by Secretary Snyder
at the dedication ofA war Memorial under the
sponsorship of the hing-Beazley Post of the
American Legion, at
v — ?— ----^
Forrest City, Arkansas, is scheduled for
delivery at abou t 3:00 pVm., CST, on Tuesday,
}[av 3 0 , 1 9 5 0 , and is for release at that 'time.
3.3 S !
A
6V
TREASURY DEPARTMENT
Washington
The following address by Secretary Snyder
at the dedication of a War Memorial under the
sponsorship of the King-Beazley Post of the
American Legion, at Forrest City, Arkansas,
is scheduled for delivery at about 3:00 p.m.,
QS.f-a.-pn Tuesday, May 30, T 9 50", arid xs for _ _
release at that time.
You have accorded me a great honor by inviting me to attend
these ceremonies in connection with the dedication of this beau
tiful war memorial — this monument you have erected to honor
the brave men from St* Francis county who gave their lives in
the two World Wars*
Forrest City is a second home to me, and the presence in
this assembly of so many friends, made during the years I spent
here, adds greatly to the pleasure of my return* The KingBeazley Post of the American Legion, which is sponsoring these
ceremonies, was organized as the Forre-st City Post in 1919, and
I was one of its charter members.
That was in the days., as many of you will remember, when
people talked of Chateau-Thierry, of Belleau Wood, of the MeuseArgonne offensive. The first great World. War had just been won
by the forces of democracy — and the troops of Arkansas had
returned to their homes with new garlands of victory on their
battle standards*
Guadalcanal and Attu, the Normandy Beachhead and the Burma
Road, Anzio, the Belgian Bulge, Okinawa and Iwo Jima had never
been heard of. They were the battlefields of the future -- the
strong points of another world war to be stormed and conquered a
quarter-century later by the sons of the men who had crossed the
Rhine in 1918.
As a member of the Expeditionary Forces of 1917-1919, I
personally know something of the bravery and spirit of the men
from this area who fought in the first W o r l d War* And the
heroic deeds of Arkansas-born soldiers, sailors and marines —
S-2351
who gave their* strength to more recent victories of our forces
on tne coral heacnes oi tne Pacific and in the hedgerows of
Normandy -- are still fresh in everyone 's memory,
nngragecp in/the granite of this impressive memorial are one
hundred and nine names -- familiar American names like Allen,
Andrews, ferguson. Hall, "Williams and Young -- all St, Francis
County men who failed to return home from the great wars. Listed
in this roster of heroes are the names of the two Forrest Citv '
hoys for whom-your Legion Post has-been renamed -- Frank King"
Jr,, who' gave his life in Germany; and Ralph Beazley, whose life
was sacrificed in the Western Carolines, These were sons of old
friends of mine, Frank wing and J, W, Beazley*, who, with me, had
no thoughts when I left Forrest City twenty-six years.a?o' that
we would ever he engaged in a second world.conflict*
The men honored by this memorial died in defense of those
ideals of justice and freedom which have made America the strong
est nation in the world ~~ he-r people the happiest. They bravely
carried the standards of decency across wide oceans and strange
continents; sacrificing'life itself that our own liberties might
be preserved -- and in order that people everywhere might he
given opportunity to- enjoy a way oi life which has been ours
since the birth of the American Republic.
In_ the hearts of each of you, memory has erected an
invisible monument to your war dead -- this memorial of stone
has been built in order that future generations may know of their
heroic deeds. There is, however, a greater and more lasting
monument to the heroic dead of every war in which we have en
gaged. since the Republic was founded.
It is this broad country
of^ ours -- still free, still vital, still a land of opportunity,
still the leader among all the nations — a monument upon which
succeeding generations may look with admiration.
Our country is working, as never before , for the causes of
peace
ye icnow that the pro sperous country is not the war-torn
country — but the one that devotes its energies to constructive
building, to the development of its resources,, to
vw the betterment
of its institutions. But until all of the nations of the earth
join with us m our questt for la;
lasting peace, we must adequately
maintain our defenses -- we must make sure
sure that
nnat no aggressor
nation threatens the freedoms vie have purchased at such a great
price.
3
In describing the spirit that made the American soldier
the ablest fighting man in the world, the late General George
Patton told this impressive story:
When our troops were driving across North Africa, the
General saw a Signal Corps private, oblivious of personal
danger, climb a telegraph pole under direct enemy fire.
Patton asked him what he was doing on the pole a t a time like
that.
"Fixing the wire," the soldier replied.
"Isn’t it
pretty unhealthy right now?" the officer inquired.
"Yes, sir,
it is," the boy answered, "but this blasted wire*s gotta be
fixed!"
Members of the forces which today fight for permanent
peace should be inspired by this story of"a courageous soldier -•?
a soldier who knew his job had to be done regardless of the
dangers involved.
As we dedicate this memorial to the men who gave their
lives on world battlefields, we should resolve to emulate
their high courage in solving the problems which are ours to
solve in this postwar period.
Unfortunately, peace is never achieved on the battlefields,
The supreme sacrifice made by members of the Army, Navy, Coast
Guard, Marines and Air Forces in campaigns on opposite sides
of the world represented the initial and most important part
of our latest struggle. Their victories made us a more confi
dent Nation, They helped us to retain that dynamic spirit
which built America as a world leader, The job must be finished
by us who live.
At the close of the war, we faced a crucial economic test.
Under the pressure of wartime activities, our economy had grown
to unprecedented heights.
Could such a high level of wartime
productivity be converted into secure peacetime production? -that was a question the country had to answer.
In the presence of Governor McMath and other distinguished
guests from all over the State, let me say with the excusable
pride of a native, that Arkansas was a leader in this nation
wide effort to bridge the economic canyon which lay between
war and peace. The people of Arkansas have undertaken to see
that business and Government work together as a team — not just
to maintain the gains already achieved, but to move forward in
ii
- 4 ever-greater growth*- The necessities of war had awakened
Arkansas to the possibilities which for a century had lain
dormant in the State!s fields, forests, mineral deposits and
streams. With the same-courage that characterized your
fighting men in uniform, you accepted this great new challenge
and went to work — united, as never before, in a common
purpose.*
The results lie on every hand — increased industrial
output; new factories and nevt homes; expanded mine production;
hundreds of miles of newly-paved roads; new sources of electric
power; better schools, and better towns, and m o r e •productive
farms,. As a single example of your enterprise, 1,500 new
businesses have been added, providing nearly 30,000 new jobs,
and industries are continuing to locate here at the rate of
around 500 a year.
United as never before, your farmers, bankers, factory
workers and tradesmen joined together to ’’build their own home
towns" — good towns like Forrest City — in the confidence
that their State*s strength was dependent upon the growth of
individual communities. So Arkansas‘has not only met its
problems of readjustment, but is finding ever greater pros
perity in peacetime. You have kept faith with your fallen
heroes. . You have done your full share toward keeping the
Nation strong and vital — our best guarantee of a peaceful
and prosperous future.
Never before has the American economy been stronger —
never before have our opportunities for further growth been
more evident,. The development of our human resources has kept
pace with the marked development of our natural res-ources. We
have gone a long way during these few postwar years — but we
must continue to work closely together in order that the achieve*
ments of the future may compensate for and reward the great
sacrifices of the past*
We believe in democracy; we believe in freedom; we believe
in peace. It is our responsibility --'our very great oppor
tunity — to prove to men and women everywherethat the American
system of free enterprise, which is based on these beliefs, can
accomplish more than any other system on the face of the earth.
-oOo-
JL
IMMEDIATE RELEASE,
Wednesday, May 31. 1950.
The Secretary of the Treasury today announced the subscription
and allotment figures with respect to the current offering of 1-l/k
percent Treasury Notes of Series
to be dated June 1, 1 # 0 .
Subscriptions and allotments were divided among the several
Federal Reserve Districts and the Treasury as follows 1
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
I
132,103,000
2,811,778,000
106,777,000
167,1*71,000
89.671.000
109.361.000
591**651,000
11*0,930,000
80,31*3,000
158.927.000
111,1*01*,000
307,1*00,000
6.325.000
Tom
$i*,817,1*51,000
IMMEDIATE RELEASE,
Wednesday. May 31. 1950«
S-2352
The Secretary of the Treasury today announced the subscription
and allotment figures with respect to the current offering of 1-1/4percent Treasury Notes of Series I)-1951* to be dated June 1, 1950*
Subscriptions and allotments were divided among the several
Federal Reserve Districts and the Treasury as follows:
Total Subscriptions
Received and Allotted
Federal Reserve
District
f 132,413*.000.
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St* Louis
Minneapolis
Kansas City
Dallas
San Francisco
Treasury
2,811,778,000
106,777,000
167,471,000
89,671,000
109,361,000
594,651,000
140,930,000
80,343,000
158,927,000
1 1 1 ,404,000
307,400,000
6.325.000
$4,817,451,000
TOTAL
oOo
- 3 -
of Agreement of both institutions provide adequate
flexibility for the adjustment of their policies and
programs to the conditions of the immediate future, and
accordingly, has not recommended changes in their capital
structure or modification of their charters.
The National Advisory Council, created by the
Bratton Woods Agreements Act, coordinates the policies
and operations of the United States representatives on
the Fund and Bank, and of all United States Government
agencies in making foreign loans or engaging in foreign
financial transactions.
Under this Act, the Council
is required every two years to review United States
policies with respect to the Fund .and Bank and to give
an over-all appraisal of the operations and policies
of these international organizations.
The Council also makes reports each six months on
its activities^ including United States participation
in the Fund and Bank.
Members of the National Advisory Council are:
the Secretary of the Treasury^ 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 ExportImport Bank; and the Administrator for Economic
Cooperation.
2
With respect to the Bank, the report polato-out
that the loans made in the initial period of postwar re
construction were of value in assisting the recovery of
the European countries and that the Bank is now making
an increased contribution to the economic development
of underdeveloped countries both through its loans and
through its technical advice and assistance.
It is
the opinion of the Council that the Bank should play
an increasingly important role in this pattern of
development, and can be especially valuable in assist
ing member countries to direct their economic develop
ment in ways which will effectively contribute to
raising standards of living and improve levels of
production.
The activities of the
™
th-rn nf
the Bank^ in the financial field serve as a valuable
element in the program of technical assistance proposed
by the President,
,
Despite the unfavorable circumstances of the
present-day world under which these two organizations
have operated, the Council believes that they have
made considerable strides forward toward the attai;
ment of their objectives a n d ^ t e
¿7 " it has
policy pursued by these
institutions.
The Council concludes that the Articles
DRAFT - 5-10-50 '
/ /r\
/
c/'X
Secretary Snyder, as Chairman of the National
Advisory Council on International Monetary and
Financial Problems, today released the Council’s
biennial report on the operations and policies of the
International Monetary Fund and the International Bank
for Reconstruction and Development*
The report was
submitted to Congress by the President.
The report points out
that in the present state
of world affairs the resources of the Fund can be used
effectively only to a limited extent to promote its
basic objectives.
It is in some future time when
greater progress has been made in the world toward
currency convertibility and equilibrium in the
international accounts that the Fund
effective in its stabilization operations
The Council
therefore favors only moderate and prudent use of the
Fund's resources to assist member countries in meeting
genuinely temporary deficits.
Nevertheless, it is the opinion of the Council
that in the interim period the Fund has an important
role as an international consultative body and as
a forum for dealing with important questions relating
to foreign exchange. In the long-run, this may prove
to be the Fund’s greatest contribution to the solution
of the international economic problems of our times .
T R E A S U R Y
D EP A R T M EN T
Information Service
immediate r e l e a s e
liedne sday, May 31, 1950
WASHINGTON, D .C .
S-2353
Secretary Snyder, as Chairman of the National Advisory
Council on International Monetary and Financial Problems, today
released the Council's biennial report on the operations and
policies of the International Monetary Fund and the International
Bank for Reconstruction and Development. The report was sub
mitted to Congress by the President.
The report points out that in the present state of world
affairs the resources of the Fund can be used effectively only
to a limited extent to promote its basic objectives. It is in
some future time when greater progress has been made in the
world toward currency convertibility and equilibrium in the inter
national accounts that the Fund can be most effective in its
stabilization operations, the report said. The Council therefore
favors only moderate and prudent use of the Fund's resources to
assist member countries in meeting genuinely temporary deficits.
Nevertheless, it is the opinion of the Council that in the
interim period the Fund has an important role as an international
consultative body and as a forum for dealing with important
questions relating to foreign exchange. In the long-run, this
may prove to be the Fund’s greatest contribution to the solution
of the international economic problems of our times.
With respect to the Bank, the report states that the loans
made in the initial period of postwar reconstruction were of
value in assisting the recovery of the European countries and
that the Bank is now making an increased contribution to the
economic development of underdeveloped countries both through its
loans and through its technical advice and assistance. It is the
opinion of the Council that the Bank should play an increasingly
important role in this pattern of development, and can be espe
cially valuable in assisting member countries to direct their
economic development in ways which will effectively contribute
to raising standards of living and improve levels of production.
The activities of the Fund and Bank in the financial field
serve as a valuable element in the program of technical assist
ance proposed by the President, the Council said.
Off
- 2 -
Despite the unfavorable circumstances of the present-day
world under which these two organizations have operated, the
Council believes that they have made considerable strides
forward toward the attainment of their objectives and has approved
the general lines of policy pursued by these institutions. The
Council concludes that the Articles of Agreement of both insti
tutions provide adequate flexibility for the adjustment of their
policies and programs to the conditions of the immediate future,
and accordingly, has not recommended changes in their capital
structure or modification of their charters.
The National Advisory Council, created by the Bretton Woods
Agreements Act, coordinates the policies and operations of the
United States representatives on the Fund and Bank, and of all
United States Government agencies in making foreign loans or
engaging in foreign financial transactions. Under this Act, the
Council is required every two years to review United States
policies with respect to the Fund and Bank and to give an over
all appraisal of the operations and policies of these inter
national organizations,
The Council also makes reports each six months on its
activities, including United States participation in the Fund
and Bank.
Members of the National Advisory Council are: the Secretary
of the Treasury, 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; and the Administrator for Economic
Cooperation.
0O0
I 33
s
records we have established -- all
stand as a tribute to the character
and the good faith of the American
people, and to their demonstrated
ability to build an ever stronger
nat ion.
\
which has strengthened the cause of
peace throughout the world.
Iff
Looking back over the years of
our national history, and particularly
this post-war period, one major fact
stands out.
That is the strength
which our system of private enterprise
and represen tat ive government has
demonstrated in the face of constantly
changing conditions.
The obstacles
we have overcome, the progress we have
achieved in ail
lines of endeavor,.the
- 31
For despite the many current
problems that are pressing for
solution, our national production and I
our national
income have exceeded all
peacetime records.
in the area of
finance, the Federal debt has been
managed as part of a broad financial
I
program which has contributed much to I
the stability and well-being of the
Nation*s economy.
In the field of
internationaI relations, our people
have shown a sympathetic
I
1
understandingl
and a willingness to offer assistance
| 30 |
changing conditions.
environment,
In such an
inventive genius receives
its quickest rewards and scientific
progress makes its most rapid
advancement.
You in the chemical
industry, who
have been in the front Iine of the
recent amazing progress in science and
technology, are well aware that this
is I ikely to be but an introduction to
even greater achievements in the days
not far ahead.
- 29 and other industries have shown in
building for the future*
I feel
assured that this firm business
foundation can and will be maintained
It will be maintained so long as we
avoid excesses of speculation or of
credit expansion -* the primary causes
of business recessions in the past.
America is a young nation, with
all that this implies for potential
future growth.-
Our economy reflects
the attitude of our people —
progressive and readily adaptable to
-
28
-
of weakness have appeared in the
business picture, such as those which,
¡n the past, have always preceded
business downturns.
In nearly every
respect, the present situation shows
a marked contrast to that after the
First hord'd iar.
These numerous evidences of basic
soundness in our economy are an
impressive feature of the business
picture today.
They amply justify the
confidence which the chemical
industry
Inventories have been kept at moderati
X"
J| p — |j
levels.
Speculative activity
in
commodity and security markets has
been no greater than normal.
Ipans
shown no undue expansion,
and the nation’s credit structure
rema m s
creo it
must
W h ile consumer
cons îderabI y ,
*i
it
*
is
excessive in relation to consumers
incomes.
In short, no significant elements
investment is confirmed by an upturn
in new orders for heavy equipment.
Orders for machinery and for machine
tools have both been rising sharply
since the third quarter of last year,
with machine tool orders in March at
a four-year high.
These are indicatioi
of steady economic growth.
This strong forward movement in i
our economy is bui It on a sound and
conservative foundation.
Business
planning has remained cautious.
subscribers has been nearly doubled
but we are continuing to Install
2 million new telephones a year.
m ism
encouragement to plant
Contract awards In April for new
construction of commercial and
were
higher than in the same month last
For the first three months of this
the gain had been 22 percent.
This resumed rise in plant
24
increased.
Liquid assets of ind t v idua
in the form of cash, checking and
savings accounts, and Government
securities, now total more than $200
biI lion.
The basic expansion of our countr
is indicated by widely varying indices
Since we entered the war In 1941, the
number of electric power customers has
been increased by more than one-third,
but we are continuing to add 2 million
more customers annually.
In the same
period, the number of telephone
employment
is the highest on record
for this time of year, and the trend
continues upward,
Consumer demand has increased
noticeably this year, and total retail
sales,
in actual unit volume, are now
running some 6 percent higher than a
year ago.
The res is tance which consumers
showed last summer to any curtai Iment
in buying was backed up by a record
volume of personal savings.
These
savings have since been further
inventories, and that upturn has
developed into a prolonged rise.
Throughout the United States
today there is a feeling of stabilityl
Industrial production now is almost
I
at the postwar high reached in the
I
fall of 1948.
|
Personal
incomes,
including the special veterans'
dividend, are at the highest level in
history.
Excluding that dividend, tN
income rate is higher than in any mon
of 1949 except January.
Total civil!
-
2 1
-
year, when the shift to normai buyers
markets caused a sudden rush to
liquidate inventories, factory
production was sharply cut back and
employees were thrown out of work.
But consumers showed almost no
tendency to curtail their buying.
Total retail sales held up month
after month near, the high levels of
the previous year.
Eventually the
factories were obliged to step up
their production to fill depleted
The rapid population growth is
not only increasing the aggregate
demand for all types of consumer
but it is also enlarging our
requirements for houses, for schools
and municipal facilities, for electric
power and other public utilities -in short, for all the needs of a
Last year the basic soundness of
our economic g
rather severe test.
was
to a
Early in the
and employment, and in many other
statist lea I data.
The United States is growing
more raoidly than ever before.
in
the past 12 months we have added
2,500,000 to our population, an annual
increase greater than the copulation
of any one of 26 individual states.
Our birth rate increased sharoly
during the war, and the high rate is
being largely maintained.
-
18
-
' , , r ' T .
I
credit expansion, as so often has
happened in the past.
Instead,
it
is a soundly financed movement,
deriving its basic strength from a
broad and expanding consumer‘demand.
It does not ta«e insight to
discern this trend, and to appraise
its significance in terms of one* s
own business.
The evidence appears
in the published statistics of
population growth, of incomes and
retail trade, of industrial production
17
doubled,
f
and the expansion
is s t Î
#
Certain other
industries -
e utility groups
d
■fence, I
y ur
ik © w 1se building heavily for the
hand,
s
at an
progress
ev idence,
is
ere is clear
that this advance
is
impelled bv a speculative
16
»e made in
No one Knows better than you in the
9
»
chemical
industry
fields of research
many promising
it fuller
ts
exoI ora
already developed have yet to be
fully te
in commercial app M e a t
Your confidence in the future
in the recent great
expans ion
Cx
industry*
During th 0 oust t @n yssrs
your 0 lent ir?v es Intent has floors than
15
aggregate
out I
ing
o o k
chemical
to
f
our
fu rth e r
the
years
of
in
the
g re a te r
the
© the
business
present
i I t h
the
there
th a t
decade
the
q u a l i f i e d
orogress
d is c o v e rie s
b e lie v e
the
o o t e n t i a Ii t i es
f i e l d s ,
than
fu tu re ,
well
s c i e n t i f i c
new
to
the
is
ahead,
sc i e n t i f ic
reason
toward
ind ustry
v i s u a l i
trend
in
.
o o k
L
im portance
of
in
accelerated
in
many
is
every
our
wiI I
rem arKable
progress
be
even
advance
14
Consider, for example, what the
television industry alone has done
recently toward broadening consumer
demand, expanding capital
an
investment,
increasing employment and incomes »
The thousands of other new and
improved products, which are similar!
contributing their part toward
expanding industrial activity, have
doubtlessly been an important factor i
the business rise this spring.
should not underestimate their
We
-
the
b u ild in g
replacem ent
of
of
13
new
*
p le n ts ,
outmoded
new
types
a v a ila b le
fo r
consum ers,
s to re s ,
are
and
people
reduced
by
more
p ro d u c tio n
m ethods,
are
and
tapped
P ro d u c tio n
is
employment
and
and
the
e n tire
of
goods
displayed
buy
the
equipm ent.
When
a d ve rtis e d
and
are
made
and
are
in
r e t a i l
more.
When
prices
e f f i c i e n t
new
marKets
thereby
incomes
na tion
demand
are
levels
broadened.
expanded,
are
is
increased,
b e n e fite d .
attractive products.
They are also
brin s ins consumers new and better
v ?
services of many Kinds.
Our rapid technical progress has
profound significance from a business
standpoint.
1t means that consumer
demand will be broadened and that
further support will be given to the
present high levels of employment and
incomes.
It means that new capital
investment will continue high for an
indefinite period as competition fore
'5'
©
rewarKsbII
progress
» *
more
experiments of John lies ley Hyatt
and the recent discoveries of George
Powell
lies the period in which
America became the leading business
and industrial nation of the world.
The laboratory genius of chemists
I iKe tonight’s recipient of the
.I -
Hyatt Award, and of others who
have won this high honor during the
past nine years for outstanding
achievements in the plastics
industry, was a contribution o f
become so accelerated that new
plastics, tailor-made for special
conditions, are scarcely given press
not ice until they are ready for
commercial production.
interi urie, is time
is reCKoned --
early
into
The plastic industry, for
example, had its beginning in 1868
when John Lesley Hyatt, for whom the
award presented to Mr. Powell
is
named, discovered the principles for
producing celluloid.
Hyatt, an
* upstate" schoolteacher with a turn
for chemistry, experimented with
cellulose nitrate and camphor in an
effort to produce a substitute
for ivory.
The result of his patient
worse was a product remembered best
«*
which,
s
—
in recent years, have been
responsible for a large proportion of
our greatest scientific discoveries.
In the older days, when our
baCKground
was much
of scientific
more
Knowledge
limited, the important
new discoveries were not very
frequent.
But each new scientific
achievement opened broad new fields,
and provided the base for a series
of
later discoveries.
Thus our rate
of
technical progress became
accelerated as we moved ahead.
5
such a record could have been
accomplished in any country outside
the United States.
Our tradition of
private initiative and free
competition, our assurance of personal
security and freedom to enjoy the
rewards of our labor, have created
an environment that has enabled free
enterprise in this country to fully
develop.
This environment has
encouraged the great orograms of
organized industrial research
«M|
The acceleration of scientific
discovery in many fields during
recent years was stimulated Initially
by the urgent demands of war.
Never
before In our history have we
produced,
in so short a time, such a
wealth of new products, new materials
for industrial use, and new and
improved industrial techniaues.
chemical
The
industry has been in the
forefront in this development.
1 doubt that anything approaching
- 5 Century because the developments
by the chemical
industry since the
beginning of the century, particularly
those of the past ten or twenty years
seem little short of mir&cuIous.
In its rapidity of development,
diversity of products,
its
its extensive
inter-reI ationship with other
industries, and its obvious
potentialities for future growth,
your industry occupies an outstanding
position in our national economy.
-
2
have contributed so much during
years toward imoroved health
and longevity, and better living
standards.
And I have ecual respect
and admiration for the industry which
has made available to the people of
this country and of the world the
wonder products made possible by the
pa instaK ing research and
experimentation of these chemists.
Some persons already are
referring to this as The Chemical
I am d
to have the opportun
tonight to spean to you members of
#•
American Chemical Society, to the
members of the Society of the Plastics
Industry, end to your associates in
the banning and inves
o 8.r
nor
of the
field
here
. Powe
, winner
Lesley Hyatt Award, for
his outstanding contr ibut ion to the
plastics industry during I9A9.
I have nrofound respect for the men
of chemistry, whose discoveries
TREASURY BSPARTMEHT
Washington
Th© following address "by Secretary Snyder on the occasion of the
Hinth Annual Presentation Banquet of the John Wesley Hyatt Award
Committee, at the Pierre Hotel, Hew York City, is scheduled for
delivery act about 9 n. m. .BDT. Thursday. Jane 1« 1950. and is for
release at that time:
51
TREASURY DEPARTMENT
Washington
The following address by Secretary/ Snyder on the
occasion of the Ninth Annual Presentation Banquet
of the John Wesley Hyatt Award Committee, at the
for
Pierre Hotel, New York City, is scheduled____
delivery about 9 p . m . , EDT, TEursday, June 17 19°Y,
and Ts Tor release at that t~ime•
I am pleased to have the opportunity tonight to speak to
you members of the American Chemical Society, to the membe.rs of
the Society of the Plastics Industry, and to your associates in
the banking and investment fields who are assembled here tonight
m
M * Powell,. H I , winner of the John Wesley Hyatt
to honorx WCeorge
for
his
outstanding
contribution to the piastics industry
Award,
during 1949.
I have profound respect for the men of chemistry, whose
discoveries have contributed so much during recent years toward
improved health and longevity, and better living standards. And.
t have equal resueet and admiration for the industry which nas
made available, to the people of this country and of tne world
the wonder products made possible^by the painstaking research
and experimentation of these chemists.
Some persons already are referring to this as The Chemical
Century because the developments by the chemical industry since
the beginning of the century, particularly^those of the past
ten or twenty years seem little short ox miraculous•^ in its
rapidity of development, its diversity of products, its exten
sive inter-relationship with otaer industries, and its obvious
potentialities for future growth, your industry occupies an
outstanding position in our national economy.
The acceleration of scientific^discovery in many fields
during recent years was stimulated initially by the urgent de
mands of war. Never before in our history have we produced, m
so short a time, such a wealth of new products, new materials
for industrial use, and new and improved industrial techniques.
The chemical industry has been in the forefront in this devel
opment .
S-2354
I doubt that anything approaching
a record could have
been accomplished in any country outside the United States.
Our tradition of private initiative and free competition, our
assurance of personal security and freedom to enjoy the rewards
of our labor, have created an environment that has enabled free
enterprise in this country to fully develop. This environment
has encouraged the great programs of organized industrial research
which, in recent years, have been responsible for
lac ii'ge
proporo
tion of our greatest'scientific"discoveries.
In the older days, when our background of scientific know
ledge was much more limited, the, important new discoveries were
not very frequent. But each new scientific achievement opened
broad new fields, and provided the base for a series of later
discoveries. Thus our rate of technical progress became accel*
erated as we moved ahead.
The plastic industry, for example, had its beginning in 1868
when John Wesley Hyatt, for whom the award presented to Mr. Powell
is named, discovered the principles for producing celluloid»
Hyatt, an ’’upstate” schoolteacher with a turn for chemistry, ex
perimented with cellulose nitrate and camphor in an effort to
produce ^ s ubstitute for ivory. The result of his patient work
was a product remembered best by the older generation for its use
in the manufacture of a shiny collar for men which could be laun
dered with a damp cloth.
It was some forty years after the Hyatt discovery that the
next plastic materials
bakelite and cellulose acetate — came
into the picture. The interval was shortened for the next step
when the vinyl plastics were developed in the late 1920*s. And
now the pace of discovery in this field has become so-accelerated
that^new plasties, tailor-made for special conditions, are scarce
ly given press notice until they are ready for commercial produc
tion.
From the era of the high celluloid collar to this modern age,
in which hundreds of plastic products have reached general use,
is a very brief interlude, as time is reckoned — but between the
early experiments of John Wesley Hyatt and the recent discoveries
of George Powell lies the period in which America became the
leading business and industrial nation of the world. The labora
tory genius of chemists like tonight’s recipient of the Hyatt
Award, and of others who have won this high honor during the past
oine years for outstanding achievements in the plastics industry,
was a contribution of inestimable worth to the remarkable progress
of the period.
- 3 However, it is not in chemistry alone that we are moving
ahead at an accelerated rate. Rapid progress is being made m
electronics, in metallurgy, in agriculture, in transportation,
materials handling, food packaging, and many other fields.
These developments are bringing to consumers a host ox new pro
ducts, cheaper products, and more attractive products. ^ Ihey are
also bringing consumers new and better services of many kincis.
Our rapid technical progress has profound significance from
a business standpoint. It means that consumer demand will be
broadened and that further support will be given to the present
hipli levels of employment and incomes.
It^means that new capital
investment will continue high for an indefinite period as compe
tition forces the building of new plants, and the replacement ot
outmoded equipment*
When new types of goods are made available for consumers,
and are advertised and displayed in retail^stores, people buy
more. When prices are reduced by more efficient production
methods, new demand levels are-tapped and markets are broadened..
Production is thereby expanded, employment and incomes are
increased, and the entire nation is benefited.
Consider, for example, what the television industry aione
has done recently toward broadening consumer demand, expanding
capital investment, and increasing employment and incomes.
The thousands of other new and improved products, which are
similarly contributing their part toward expanding industrial ^
activity, have doubtlessly been an important factor in the ousiness rise this spring. We should not underestimate their
aggregate importance in the business outlook*
Looking toward the future, the chemical industry is well
qualified to visualize the potentialities oi our further
scientific progress in the years ahead.^ With^the accelerated
trend of new discoveries in many scientific fields, there is
every reason to believe that our progress in the present decade
will be even greater than the remarkable advance we made ^In
the decade of the 1940»s. No one knows better than you in the
chemical industry how many promising fields of research await
fuller exploration, and how many products already developed,
have yet to be fully tested in commercial application.
M
- 4 Your confidence in the future is reflected in the recent
great expansion program of the chemical industry, During the
past ten years your plant investment has more than doubled,
and the expansion is still continuing.
Certain other industries -- notably the utility groups —
have shared your confidence, and are likewise building heavily
for the future.
On every hand, there is evidence that an era of dynamic
progress is under way. There is clear evidence, too, that
this advance is not being impelled by a speculative credit
expansion, as so often has happened in the past.
Instead, it
is a soundly financed movement, deriving its basic strength
from a broad and expanding consumer demand.
It does not take insight to discern this trend, and to ap
praise its significance in terms of one’s own business. The
evidence appears in the published statistics of population
growth, of incomes and retail trade, of industrial production
and employment, and in many other statistical data.
The United States is growing more rapidly than ever before.
In the past 12 months we have added 2,500,000 to our population,
an annual increase greater than the population of any one of
26 individual states. Our birth rate increased sharply during
the war, and the high rate is being largely maintained.
The rapid population growth is not only increasing the
aggregate demand for all types of consumer goods, but it is also
enlarging our requirements for houses, for schools and municipal
facilities, for electric power and other public utilities —
in short, for all the needs of a prosperous people.
Last year the basic soundness of our economic growth was
put to a rather severe test. Early in the year, when the
shift to normal buyers’ markets caused a sudden rush to liqui
date inventories, factory production was sharply cut back and
employees were thrown out of work.
But consumers showed almost no tendency to curtail their
buying. Total retail sales held up month after month near the
high levels of the previous year. Eventually the factories
were obliged to step up their production to fill depleted
inventories, and that upturn has developed into a prolonged
rise.
Throughout the United States today there is a feeling of
stability. Industrial production now is almost at the post
war high reached in the fall of 1948. Personal incomes,
including the special veterans* dividend, are at the highest
level in history* Excluding that dividend, the income rate
is higher than in any month of 1949 except January. Total
civilian employment is the highest on record for this tim > of
year, and the trend continues upward.
Consumer demand has increased noticeably this year, and
total retail sales, in actual unit volume, are now running
some 6 percent higher than a year ago.
The resistance which consumers showed last summer to any
curtailment in buying was backed up by a record volume of
personal savings. These savings have since been further in
creased. Liquid assets of individuals in the form of cash,
checking and savings accounts, and Government securities, now
total more than $200 billion.
The basic expansion of our country is indicated by widely
varying indices. Since we entered the war in 1941, the number
of electric power customers has been increased by more than
one-third, but we are continuing to add 2 million more customers
annually.
In the same period, the number of telephone sub
scribers has been nearly doubled, but we are continuing to
install 2 million new telephones a year.
The greater business optimism recently has given renewed
encouragement to plant expansion. Contract awards in April
for new construction of commercial and manufacturing buildings
were 66 percent higher than in the same month last year. For
the first three months of this year the gain had been 22 percent.
This resumed rise in plant investment is confirmed by an
upturn in new orders for heavy equipment. Orders for machinery
and for machine tools have both been rising sharply since the
third quarter of last year, with machine tool orders in March
at a four-year high. These are indications of steady economic
growth.
This strong forward movement in our economy is built on .
a sound and conservative foundation. Business planning has
remained cautious.
Inventories have been kept at moderate
levels. Speculative activity in the commodity and security
markets has been no greater than normal. Bank loans have shown
ICfO
no ‘undue expansion, and the nation*s credit structure remains
strong. While consumer credit has expanded considerably, and
must be watched, it is not excessive in relation to consumers*
incomes.
In short, no significant
in the business picture, such
have always preceded business
the present situation shows a
First World W a r .
elements of weakness have appeared
as those which, in the past,
downturns.
In nearly every respect,
marked contrast to that after the
These numerous evidences of basic soundness in our economy
are an impressive feature of the business picture today. They
amply justify the confidence which the chemical industry and
other industries have shown in building for the future. I feel
assured that this firm business foundation can and will be
maintained. It will be maintained so long as we avoid excesses
of speculation or of credit expansion -- the primary causes of
business recessions in the past.
America is a young nation, with all that this implies for
potential future growth. Our economy reflects the attitude of
our p e o p l e — progressive and readily adaptable to changing
conditions. In such an environment, inventive genius receives
its quickest rewards' and scientific progress makes its most
rapid advancement.
You in the chemical industry, who have been in the front
line of the recent amazing progress in science and technology,
are well aware that this is likely to be but an introduction
to even greater achievements in the days not far ahead.
For despite the many current problems that are pressing
for solution, our national production and- our national
income have exceeded all peacetime records. In the area of
finance, the Federal debt has been managed as part of a broad
financial program which has contributed much to t h e 'stability
and well-being of the Nation*s economy.
In the field of
international relations, our people have shown a sympathetic
understanding and a willingness to offer assistance which
has strengthened the cause of peace throughout the world#.
Looking back over the years of our national history, and
particularly this post-war period, one major fact stands out.
That is the strength which our system of private enterprise
and representative government has demonstrated in the face of
constantly changing conditions# The obstacles we have overcome
the progress we have achieved in all lines of endeavor, the
records we have established -- all stand as a tribute to the
character and the good faith of the American people, and to
their demonstrated ability to build an ever stronger nation.
- 3 A-T T ^ T T A —
30061$
purposes of taxation the amount of discount at which Treasury bills are originallysold by the United States shall be considered to be interest.
Under Sections Lj.2
and 117 (a) (1) of the Internal Revenue Code, as amended by Section 115 of the
Revenue Act of 19Ul* the amount of discount at vdiich 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 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-cpmpetitiVe 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
Junei §f 1 9]>Q
-------------------------- —
, in cash or other immediately avail-
7 T r v ~ -------------- --------------- -------------
W
able funds or in a like face amount of Treasury bills maturing
pymo
1950_____•
agt
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 ne?f 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 ariy State, or 'any of
the possessions of the United States, or by any local taxing authority.
For
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Friday, Jona 2, 1950.
£
f" §
J>-
*
The Secretary of the Treasury’ , "by this public notice, invites tenders for
$ 1»100»000»000 , or thereabouts, of
91 -day Treasury b ills , for cash and
P W
' W ~
in exchange for Treasury b ills maturing Jane 8* 1950
, to be issued on
a discount basis under competitive and non-competitive bidding as hereinafter
provided.
w ill mature
interest.
The b ills of this series w ill be dated
September 7« 1950
>
Juno 8>^1^50
_______* and
when the face amount w ill be payable without
They w ill be issued in bearer form only, and in denominations of
$1,000, $5,000, $10,000, $100,000, $500,000, and $1,000,000 (maturity value).
Tenders w ill be received at Federal Reserve Banks and Branches up to the
D a y li^ it Saving
closing hour, two o*clock p.m., Eastern^tsxtÈncat time,
Monday, June 5* 1950
------------------------------- '/ M V '-------- £--------------- I f —
Tenders w ill 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.
I t is urged
that tenders be made on the printed forms and forwarded in the special envelopes
Which w ill be supplied by Federal Reserve Banks or Branches on application
therefor.
Tenders w ill be received Yrithout deposit from incorporated banks and trust
companies and from responsible and recognized dealers in investment securities.
Tenders from others must be accompanied by payment of 2 oercent of the face
T R E A S U R Y
D EP A R T M EN T
Information Service
RELEASE, MORNING NEWSPAPERS,
Friday. June 2. 1950*____ __
WASHINGTON, D .C .
S-2355
■ ^The Secretary of the Treasury, by this public notice, invites tenders
for
100,000,000,, or thereabouts of 91-day Treasury bills, for cash and
in exchange for Treasury bills maturing June 8., 1950, to be issued on a
q i s count basis under competitive and non— competitive bidding as hereinafter
provided* The bills of this series will be dated June 8 1950 and will
mature September 7, 1950, when the face amount will be payable 'without
interest« They will be issued in bearer form only, and in denominations of
•-¿lj000, -i>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, twTo o !clock p.m., Eastern Daylight Saving time, Monday
June^ 5, 1950« Tenders will not be received at the Treasury Department
Washington« Each -tender must be for an even multiple of $1,000 and iii
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 usedo It is urged that tenders be made on the printed forms and
forwarded in the special envelope s which will be supplied by Federal Reserve
Banks or Branches on application therefor.
Tenders will be received without deposit from incorporated banks and
trustycompanies and from responsible and recognized dealers in investment
securities« Tenders irom 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
edoral 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 will be advised of the accept
ance or rejection thereof. The Secretary of the Treasury expressly reserves
the right to accept or reject any or all tenders, in wholp 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
ederal Reserve Bank on June 8, 1950, in cash or other immediately avail
able funds or in a like face amount of Treasury bills maturing June 8,
1950. Cash and exchange tenders will receive equal treatment« Cash ad
justments will be made for differences between the par value of maturing
bills-accepted in exchange and the issue price of the new bills«
*“• 2 f—
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 less 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 ty 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 excludèd from
consideration as capital assets. Accordingly, the ovmer of Treasury'bills
(other than life insurance companies) issued hereunder need include in his
income tax return only the difference between the price paid for such bills,
whether on original issue or on subsequent purchase, and the amount actually
received either upon sale or redemption at maturity during the taxable year
for which 1 he return is made, as ordinary gain or loss«
>
Treasury Department Circular No. 41&, 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
- X -
gpeatly remiss if I did not on this occasion, express our
deep appreciation of his fine Coast Guard record.
Your
service, Admiral Derby, spanned the two greatest wars in
history, took you to most of the waters which Coast Guard
vessels sail, and placed you at one time or another at almost
every Coast Guard shore station.
The decks of the Seneca, the Tuscarora, the Androscoggin,
the Tahoma, the Thetis, the Pamlico, the Itasca, the Manhattan,
the Earp, the Mojave, the Manning, the Alexander Hamilton,
the Cassin, the Cayuga, the Wakefield, and of course the
Eagle —
all of these decks have been home to you.
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strength —
billions we never dreamed we would have to be
spending
so soon after the end of World War II*
jj
o
Military preparedness, search and rescue, the opera
tion of aids to navigation, weather and iceberg patrols --
these and all the other many assignments of the Coast Guard
comprise its mission.
In the very nature of those assignments, and so in all
of the Coast Guard1s history and traditions, the mission of
the Coast Guard may be summed up as service.
It is my hope that as today*s graduates of the Academy
assume a share of the responsibility for that mission they
will find their service a happy, satisfying, and rewarding
one.
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16
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Every graduate who goes out from the Academy must
realize the American people have invested heavily in his
education and training and that he in turn must vindicate
the people’s trust in him.
Today that obligation stands clear and compelling.
We are in the midst of a "cold war".
Great issues of
national policy are being resolved, and they will be re
solved as we want them to be only if this nation continues
strong, determined, and united.
To put it more realistically,
the United States Coast Guard must give every attention these
fateful days not only to all the civil functions to which
I have referred, but also to the companion responsibility
of constant and complete readiness for military service.
It has become obvious that only through preparedness can we
hope for peace.
It is because we want peace so desperately
that we are willing to spend billions today on military
retirement is reached next September 1, the country will
join me in wishing you every further happiness and good
fortune.
-
- 15 / -
Your specific assignments have included the Bering Sea
Patrol, liaison duty at the Hampton Roads Naval Training
Station, command of destroyer divisions, administration of the
Curtis Bay Coast Guard Depot, a Government expedition to the
far Pacific,^staff duty under the Commander-in-Chief of the
United States Fleet, the Coast Guard command of the First Naval
District, and important administrative responsibilities in
Coast Guard Headquarters at Washington.
Three tours of duty at the Academy have linked you closely
with this school.
In the course of those tours you served as an
instructor, as a staff officer, and finally, since 1947, as
superintendent.
The Government and the country are your debtors, Admiral,
for this example of distinguished Coast Guard leadership.
It
is a record which should inspire every young Coast Guard officer
and officer-to-be.
I am sure, sir, that when the date of your
- 13 -
There has been marked legislative progress.
Of major
importance, the Congress has enacted the new Title 14 of
the United States Code.
That Title presents for the first
time a concise and comprehensive statutory statement of the
Coast Guardfs organization, duties and functions.
Yes —
we have come a long way during your four years at the Academy.
There soon will he under construction on these grounds
a $450,000 Coast Guard Academy memorial chapel.
This chapel,
provided for by private contributions, will honor the Coast
Guard's heroic dead, make available an atmosphere appropriate
to religious worship, and reassure all concerned that the
spiritual side of cadet life is not neglected.
That this chapel is soon to materialize is due in large
measure to the vision and enterprise of Admiral Derby who is
to retire on September 1 after more than 42 years of service in
capacities from cadet to his present flag rank.
I should be
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12
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our navigational aid devices are far beyond in effectiveness
anything the Coast Guard and
seafarers and flyers knew be
fore the war.
Still other progress has been made in the field of
search and rescue coverage, which has been widened sub
stantially.
And in this field the Coast Guard has done
some of its finest and most storied work.
The Coast Guard Auxiliary is functioning on a
voluntary basis at a large number of points, and every
effort still is being made to establish the Coast Guard
Reserve as a going concern.
Administratively, as the result of studies authorized
by Secretary Snyder and Congress, there have been advances
and improvements in management, notably in accounting and
in supply.
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11
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New appropriations still are pending, but in general
Coast Guard resources are now geared family satisfactorily
to the size of the job we must do.
The progress of the Coast Guard in some respects has
been of world-wide significance»
I have in mind the new
field of ocean weather observation in which Coast Guard
participation has now been established as a peacetime activity
of great importance to every country which makes use of the
sea and the air for transportation purposes.
In time to
come some of you will draw duty on nweather ships •
be rugged duty if the weather is unfriendly.
It will
But it will be
part of the Coast Guard job and for that reason you will
find it satisfying.
Our progress covers great technical advances in our
system of navigational aids.
By advances I mean that
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10-
no American should take the welfare of his country for
granted. * But for public officials to take it for granted
would be catastrophic.
Too many far-reaching possibilities
rest today on the quality and the consistency of our service
to permit shirking by any of us.
On the earnestness and
sincerity and determination with which we play our parts in
our national life, rest our hopes for the future.
I am sure that Admiral O ’Neill will bear me out that
there is much to encourage a
young man starting a career
as an officer in the Coast Guard.
In the early postwar years we faced difficulties.
There were such difficulties —
and severe ones -- as de
mobilization, uncertainty of mission, lack of funds, lack
of manpower.
We have ridden out those difficulties, and
now find ourselves, in over-all view, making genuine
progress again.
perform that service.
These advances create widely-
expanded fields for individual endeavor, on the one
hand; they also add a lot of length and breadth and
thickness to the size of the over-all job the Coast
Guard must do.
So your obligation of professional
leadership-is one worthy of just about everything you
can give it in the way of thought, application and
devotion.
And your obligation as public servants deserves —
I should say requires —
no less than that.
It is an obliga
tion none of us can afford to ignore if we want this
country to retain its place in the world as the tradi
tional home of freedom *and opportunity.
Let1s put it this way:
In these troubled times,
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8
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to explain the high degree of Coast Guard morale today.
Every graduate of the Academy has, of course, a
dual responsibility —
the obligation of professional
leadership and the obligation of public service.
Both
obligations are weighty ones.
Technically, the march of science has been such
that in a great many of our daily activities, the be
ginning of the last decade has become almost a remote
past to us.
There are new conceptions of what Coast
Guard service should be; there are new tools with which to
/
- 7 -
Coast Guard work will make on you for skill and resourceJ0
fulness.
The kind of example you set and the kind of leader
ship you manifest, whether in professional affairs or in
civic life,will he shaped largely by that sum of a man’s
moral qualities which we call character.
And in your
years at the Academy you have added to your character.
When a man’s associates appraise him, they speak in
stinctively of his character and integrity.
Character
shapes a man’s attitude toward both superiors and sub
ordinates.
It prompts respect and confidence in the one,
and never-failing concern for the well being of the other.
There isn’t a Coast Guard assignment on which character
isn’t needed.
That the need has been met goes far, I think,
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6
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You should find no lack of excitement and adventure
in your Coast Guard experiences.
If you thumb the index
cards at any library you will locate the deeds of Coast
Guardsmen catalogued under such titles as “Sons of the
Hurricane”, “Heroes of the Shoals", “Sea, Surf and Hell“,
and “Men, Wind and Seas”.
are not inappropriate.
And the titles of these volumes
But the official Coast Guard records
page after page, tell the same thrilling stories in detail
none the less graphic because the words of the official
report happen to be in fewer syllables.
f
Your years at the Academy have provided you primarily
with basic knowledge and training in techniques rather
than with actual experience in Coast Guard operations.
But that knowledge —
broad, thorough and penetrating —
has equipped you well for the calls that day to day
- 5 competed for entrance to the Academy four years earlier.
Those who have successfully completed the course and their
parents and loved ones have every right to he proud of that
achievement.
A few years ago a witness appearing before a Congressional
Committee gave a very picturesque description of the Coast
Guard.
Here are his words:
"I served in England during the war, and
I would explain to the British that if they could
imagine some of the functions of the Royal Navy,
plus their Ministry of War Transport, plus the Royal
Life Boat Association, plus their Coast Guard, plus
one or two incidental organizations, all rolled into
one, they would have the United States Coast Guard.
It goes almost without saying that challenging opportunities
await new ensigns in such an outfit
in the air.
afloat, ashore, and
In the give and take of' this further competition
mortality rates necessarily are high.
No one knows that
better than I because one of the most unhappy official
duties I have is the sad task of accepting the resignations
of those cadets who have not, by reason of one misfortune
or another, ttmade the grade.w
Those cadets of "sound body, stout heart and alert
mind", who complete the Academy courses satisfactorily
■m
and qualify for commissions necessarily represent only a
very small percentage of the total number of young men with whom
-'3 -
those letters annually represent the finest young men this
Nation
can produce.
Comparatively few in number, they
have competed fairly and squarely with thousands of other
young men, and have been found to measure up best to the
exacting standards of mental, moral and physical qualifica
tions.
r~
y
Those who accept the appointments are required further
to demonstrate their abilities.
They must survive a
challenging course of study of science and engineering and
they must display adaptability of a high order for Coast
Guard careers.
-
once-in-four-years variety.
2
-
With me it is a warm and constant
interest of a personal and official character.
I feel particularly close to the Class of 1950 because
your tour of duty here at the Academy and mine as the
Secretary1s representative having immediate supervision of
the Coast Guard began at approximately the same time.
Dur
ing the past four years I have followed each step of your
careers with keen personal interest.
Of all my duties as Under Secretary of the Treasury,
none gives me greater pleasure than the happy task of
signing official notifications which go out each spring
to a very select group of young Americans, tendering them
appointments to cadet status here.
The recipients of
A
ADMIRAL 0’NEI L L / \ dMIRAL DER]
>
GUESTS / LADIES AND GENTLED
---- =----—
------ 1
(
I am delighted again-to have the honor of taking part
in the final exercises of another United States Coast Guard
Academy commencement.
I am happy to extend to the 68 most
important participants in this program my personal congratu
lations, and the best wishes of Secretary Snyder and all my
Treasury associates for your success in the careers on which
you are now about to embark.
It has been four years since I have had the privilege
to address a graduating class of this Academy.
The other
occasion was when the last three year class graduated in 1946 -
the year in which you began your life in the Coast Guard.
But I hasten to assure you that my interest in this excellent
institution and its splendid cadet corps is not of the
TREASURY DEPARTMENT
Washifigton
3
The following address hy Edward H. Foley, J r U n d e r 'Secretary
of the Treasury, at the {Commencement Exercises of the United States
Coast Guard Academy, Hew London, Connecticut, is scheduled for
delivery at 2:30 x>. m.. B. D. T.. Friday. June 2, 1950. and is
for release at that time:
3
&3
^
The following address by Edward H. Foley, Jr.,
Under Secretary of the Treasury, at the
Commencement Exercises of the United States
Coast Guard Academy, New London, Connecticut,
is scheduled for delivery at 2:oO p. m . ,
‘F T 11. 'T.,• gglgay;"'
releaseat that T i m e :..
1 am delighted again to have the honor of taking part in
the final exercises of another United States Coast Guard Academy
commencement._ I am happy to extend to the 68 most important
participants in this program my personal congratulations, and
the best wishes of Secretary Snyder and all my Treasury associates
for your success in the careers on which you are now about to
embark.
It has been four years since I have had the privilege to
address a graduating class of this Academy. The other occasion
was when the last three year class graduated in 1946 - the year
in which you began your life in the Coast Guard. But I hasten
to assure you that my interest in this excellent institution and
its splendid cadet corps is not of the once-in-four-years variety.
With me it is a warm and constant interest of a personal and
official character.
I feel particularly close to the Class of 1950 because your
tour of duty here at the Academy and mine as the Secretary’s
representative having immediate supervision of the Coast Guard
began at approximately the same time. During the past four years
I have followed each step of your careers with, keen personal
interest.
Of all my duties as Under Secretary of the Treasury, none
gives^me greater pleasure than the happy task of signing official
notifications which go out each spring to a very select group of
young Americans, tendering them appointments to cadet status here.
The recipients of those letters annually represent the finest
young men this Nation can produce. Comparatively few in number,
they have competed fairly and squarely with thousands of other
young men, and have been found to measure up best to the exacting
standards of mental, moral and physical qualifications.
S-2356
N ,
. i•■ - .
/ M>
-
2
-
Those who accept the appointments are required further to
demonstrate their abilities. They must survive a challenging
course of study of science and engineering and they must display
adaptability of a high order for Coast Guard careers.
In the give and take of this further competition mortality
rates necessarily are high. No one knows that better than I
because one of the most unhappy official duties I have is the
sad task of accepting the resignations of those cadets who have
not, by reason of one misfortune or another, "made the grade .*1
Those cadets of ”sound body, stout heart and alert mind’*,
who complete the Academy courses satisfactorily and qualify for
commissions necessarily represent only a very small percentage
of the total number of young men with whom they competed for
entrance to the Academy four years earlier* Those who have suc
cessfully completed the course and their parents and loved ones
have every right to be proud of that achievement.
A few years ago a witness appearing before a Congress^
Committee gave a very picturesque description of the Coast Guard,
here are his words :
”1 served in England during the war, and I would
explain to the British that if they could imagine some
of the functions of the Royal Navy, plus their Ministry
of War Transport, plus•the Royal Life Boat Association,
plus their Coast Guard, plus one or two incidental
organizations, all rolled into one, they would have the
United States Coast Guard.**
It goes almost without saying that challenging opportunities
await new ensigns in such an outfit -- afloat, ashore, and in
the air.
You should find no lack of excitement and adventure in your
Coast Guard experiences.
If you thumb the index cards at any
library you will locate the deeds of Coast Guardsmen catalogued
n
oes of the
of the Hurricane**, *'
under such titles as IISons
Seas**,
And
.
*
*
,
and
**Men,
Wind
and
Shoals’*, **Sea, Surf and
But the ofthe titles of these volumes are not inappropriate
ficial Coast Guard records, page after page, tell the same ;
thrilling stories in detail none the less graphic because the
words of'the official report happen to be m fewer syllables
- 3 Your years at the Academy have provided you primarily with
basic knowledge and training in techniques rather than with actual
experience in Coast Guard operations* But that knowledge —
broad, thorough and penetrating -- has equipped you well for the
calls that day to day Coast Guard work will make on you for skill
and resourcefulness*
The kind of example you set and the kind of leadership you
manifest, whether in professional affairs or in civic life, will
be shaped largely by that sum of a man's moral qualities which
we call character* And in your years at the Academy you have
added to your character*
When a m a n ’s associates appraise him, they speak instinct
lively of his character and integrity* Character shapes a man's
attitude toward both superiors and subordinates* It prompts
respect and confidence in the one, and never-failing concern for
the well-being of the other* There isn't a Coast Guard assign
ment on which character isn't needed. That the need has been
met goes far, I think, to explain the high degree of Coast Guard
morale today.
Every graduate of the Academy has, of course, a dual
responsibility -- the obligation of professional leadership and
the obligation of public service* Both obligations are weightv
ones.
.
&
Technically, the march of science has been such that in a
great many of our daily activities, the beginning of the last
decade has become almost a remote past to us. There are new
conceptions 01 what Coast Guard service should be; there are new
tools with which to_ perform that service. These advances create
widely expanded fields for individual endeavor, on the one hand;
they also add a lot of length and breadth and thickness to the
size of^the over-all job the Coast Guard must do* So your
obligation of professional leadership is one worthy of just
about everything you can give it in the way of thought, appli
cation and devotion*
And^your obligation as public servants deserves — X should
say requires -- no less than that. It is an obligation none of
us can^ afford to ignore if we want this country to retain its
place in the world as the traditional home of freedom and op
portunity.
r
/¿7
- 4 Let's put it this way:
In these troubled times, no American
should take the welfare of his country for granted* But for
public officials to take it for granted would be catastrophic*
Too many far-reaching possibilities rest today on the quality
and the consistency of our service to permit shirking by any of
us. On the earnestness and sincerity and determination with
which we play our parts in our national life, rest our hopes
for the future.
I am sure that Admiral O'Neill will bear me out that there
is much to encourage a young man starting a career as an officer
in the Coast Guard.
In the early postwar years we faced difficulties. There •
were such difficulties—
and severe ones — as demobilization,
uncertainty of mission, lack of funds, lack of manpower. We
have ridden out those difficulties, and now find ourselves, in
over-all view, making genuine progress again*
New appropriations still are pending, but in general Coast
Guard resources are now geared fairly satisfactorily to the size
of the Job we must do.
The progress of the Coast Guard in some respects has been
of world-wide significance* I have in mind the new field of
ocean weather observation in which Coast Guard participation has
now been established as a peacetime activity of great importance
to every country which makes use of the sea and the air for
transportation purposes. In time to come some of you will draw
duty on l e a t h e r ships”. It will be rugged duty if the weather
is unfriendly. But it will be part of the Coast Guard job and
for that reason you will find it satisfying*
Our progress covers great technical advances in our system
of navigational aids. By advances I mean that our navigational
aid devices are far beyond in effectiveness anything the Coast
Guard and seafarers and flyers knew before the war.
Still other progress has been made in the 'field of search
and rescue coverage, which has been widened substantially* And
in this field the Coast Guard has done some of its finest and
most storied work.
- 5 The Coast Guard Auxiliary is functioning on a voluntary
basis at a large number of points, and every effort still is
being made to establish the Coast Guard Reserve as a going
concern.
Administratively, as the-result of studies authorized by
Secretary Snyder and Congress, there have been advances and
improvements in management, notably in accounting and in supply*
There has been marked legislative progress. Of major
importance, the Congress has enacted the new Title 14 of^the
United States Code. That Title presents for the first time a
concise and comprehensive statutory statement of the Coast
Guard’s organization, duties and functions. Yes — we have
come a long way during your four years at the Academy.
There soon will be under construction on these grounds a
$450,000 Coast Guard Academy memorial chapel. This chapel, pro
vided for by private contributions, will honor the Coast Guard’s
heroic dead, make available an atmosphere appropriate to relig
ious worship, and reassure all concerned that the spiritual side
of cadet life is not neglected.
That this chapel is soon to materialize is due in large
measure to the vision and enterprise of Admiral Derby who^is
to retire on September 1 after more than 42 years of service in
capacities from cadet to his present flag^rank. I should be
greatly remiss if I did not on this occasion, express our deep
appreciation of his fine Coast Guard record. Your service,
Admiral Derby, spanned the two greatest wars in history, took
you to most of the waters which Coast Guard vessels sail, and
placed you at one time or another at almost every Coast Guard
shore station.
The decks of the Seneca, the Tuscarora, the
the Tahoma, the Thetis, the Pamlico, the Itasca,
the Earp, the Mojave, the Manning, the Alexander
Cassin, the Ca.yuga, the Wakefield, and of course
all of these decks have been home to you.
Androscoggin,the Manhattan,
Hamilton, the
the Eagle —
Your specific assignments have included the Bering Sea
Patrol, liaison duty at the Hampton Roads Naval Training Station,
command of destroyer divisions, administration of the Curtis Bay
Coast Guard Depot, a Government expedition to the far Pacific,
fit
staff duty under the Commander-in-Chief of the United States
Fleet, the Coast Guard command of the First Naval District, and
important administrative responsibilities in Coast Guard
Headquarters at Washington•
Three tours of duty at the Academy have linked you closely
with this school.
In the course of those tours you served as
an instructor, as a staff officer, and finally, since 1947, as
superintendent.
The Government and the country are your debtors, Admiral,
for this example of distinguished Coast Guard leadership. It
is a record which should inspire every young Coast Guard officer
and officer-to-be. I am sure, sir, that when the date of your
retirement is reached next September 1, the country will join
me in wishing you every further happiness and good fortune.
Every graduate who goes out from the Academy must realize
the American people have invested heavily in his education and
training and that he in turn must vindicate the people’s trust
in him.
Today that obligation stands clear and compelling. We are
in the midst of a !?cold w a r ,f. Great issues of national policy
are being resolved, and they will be resolved as we want them
to be only if this nation continues strong, determined, and
united. To put it more realistically, the United States Coast
Guard must give every attention these fateful days not only to
all the civil functions to which I have referred, but also to
the companion responsibility of constant and complete readiness
for military service.
It has become obvious that only through
preparedness can we hope for peace.
It is because we want peace
so desperately that we are willing to spend billions today on
military strength — billions we never dreamed we would have to
be spending so soon after the end of World War II.
.Military preparedness, search and rescue, the operation
of aids to navigation,^weather and iceberg patrols — these and
all the other many assignments of the Coast Guard comprise its
mission.
In the very nature of those assignments, and so in all of
tne Coast Guard’s history and traditions, the mission of the
eoast Guard may be summed up as service.
It is my hope that as today’s graduates of the Academy
assume a^share of the responsibility for that mission they will
i m d their service a happy, satisfying, and rewarding one.
0O 0
T R E A S U R Y
D EP A R T M EN T
Information Service
RELEASE, MORNING NEVBPAPERS,
Friday. June 2. 1950» :
______
S-2355
The Secretary of the Treasury, by this public notice, invites tenders
for $1,100,000,000, or thereabouts of 91-day Treasury bills, for cash and
in exchange for Treasury bills maturing June 8, 1950, 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 8, 1950, and will
mature September 7, 1950, ’«ben the face amount vail be payable Tilth out
interest« They will be issued in bearer form only, and in denominations of
a , 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 5, 1950« 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 envelope a 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 clos ing 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 accept
ance or rejection thereof. The Secretary of the Treasury expressly reserves
the right to accept or reject any or all tenders, in ?;hole 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 8, 1950, in cash or other immediately avail
able funds or in a like face amount of Treasury bills maturing June 8,
1950, Cash and exchange tenders will receive equal treatment. Cash ad
justments 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 b ills* whether interest or gain from
the sale or other disposition of the bills* shall not have any .exemption*
as such* and less from the sale or other disposition of ^Treasury b ills
shall not have any special treatment* as such* under the Internal Revenue
Code* or laws amendatory or supplementary thereto« The b ills shall be
subject to estate* inheritance* g ift or other excise taxes* whether Federal
or State* but shall be exempt from a ll taxation now or hereafter imposed
on the principal pr 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 b ills 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 ty Section 115 of
the Revenue Act of 1941* the amount of discount at which b ills issued here
under are sold shall not be considered to,accrue until such b ills shall be
sold* redeemed or otherwise disposed of* and such b ills are excluded from
consideration as capital assets. Accordingly* the owner of: Treasury'bills
(other than li f e insurance companies) issued hereunder need include in his
income tax return only the difference betvjreqn 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 b ills arid govern the conditions of their
issue« Copies of the circular may be obtained from any Federal Reserve
Bank or Branch«
oOo
/&>
TREASURY DEPARTMENT
Washington
The following address by Secretary Snyder on the
occasion of the Ninth Annual Presentation Banquet
of the John Wesley Hya11 Award Coiiuni11ee, at the
Pierre Hotel, New York City, is scheduled for
delivery about 9 p.iru, EDT, Thursday7~~June IT 1950,
and is for release at that ti m e •
I am pleased to have thq opportunity tonight to speak to
you members of the American Chemical Society, to the members of
the Society of the Plastics Industry, and to your associates^in
the banking and investment fields who are assembled here tonight
to honor George M. Powell, III, winner of the John Wesley Hyatt
Award, for his outstanding contribution to the plastics industry
during. 1949,
I have profound respect for the men of chemistry, whose
discoveries have contributed so much during recent years toward
improved health and longevity, and better living standards• And
I have equal respect and admiration for the industry which nas
made available to the people of this country and of the world
the wonder products made possible by the painstaking research
and experimentation of these chemists.
Some persons already are referring to this as The Chemical
Century because the developments by the chemical industry since
the beginning of the century, particularly those of the past
ten or twenty years seem little short of miraculous.
In its
rapidity of development, its diversity of products, its exten
sive inter-relationship with other industries, and its obvious
potentialities for future growth, your industry occupies an
outstanding position in our national economy.
The acceleration of scientific discovery in many fields
during recent years was stimulated initially by the urgent de
mands of war. Never before in our history have we produced, in
so short a time, such a wealth of new products, new materials
for industrial use, and new and improved industrial techniques.
The chemical industry has been in the forefront in this devel
opment,
S-2354
/3f
-
2
-
I doubt that anything approaching such a record could have
been accomplished in any country outside the United States.
Our tradition of private initiative and free competition, our
assurance of personal security and freedom to enjoy the rewards
of our labor, have created an environment that has enabled free
enterprise in this country to fully develop. This environment
has encouraged the great programs of organized industrial research
which, in recent years, have been responsible for a large propor
tion of our greatest scientific"discoveries«
In the older days, when our background of scientific knoyjledge was much more limited, the -important new discoveries were
not very frequent. But each new scientific achievement opened
broad new fields, and provided the base for a series of later
discoveries. Thus our rate of technical progress became accel
erated as we moved ahead.
The plastic industry, for example, had its beginning in 1868
when John Wesley Hyatt, for whom the award presented to Mr. Powell
is named, discovered the principles for producing celluloid*
Hyatt, an “upstate" schoolteacher with a turn for chemistry, ex
perimented with cellulose nitrate and camphor in an effort to
produce a substitute for ivory. The result of his^patient work
was a product remembered best by the older generation for its use
in the manufacture of a shiny collar for men which could be laun
dered with a damp cloth.
It was some forty years after the Hyatt discovery that the
next plastic materials -- bakelite and cellulose acetate -- came
into the picture. The interval was shortened for the next step
when the vinyl plastics were developed in the late 1920*s. And
now the pace of discovery in this field has become so accelerated
that new plastics, tailor-made for special conditions,^are scarce
ly given press notice until they are ready for commercial produc
tion.
From the era of the high celluloid collar to this modern age,
in which hundreds of plastic products have reached general use,
is a very brief interlude, as time is reckoned — but between the
early experiments of John Wesley Hyatt and the recent discoveries
of George Powell lies the period in which America became the
leading business and industrial nation of the world. The labora
tory genius of chemists like tonight*s recipient of the Hyatt
Award, and of others who have won this high honor during^the past
nine years for outstanding achievements in the plastics industry,
was a contribution of inestimable worth to the remarkable progress
of the period.
/¿a
- 3 However, it is not in chemistry alone that we are moving
ahead at an accelerated rate. Rapid progress is being made in
electronics, in metallurgy, in agriculture, in transportation,
materials handling, food packaging, and many other fields.
These developments are bringing to consumers a host of new pro
ducts, cheaper products, and more attractive products. They are
also bringing consumers new and better services of many kinds.
Our rapid technical progress has profound significance from
a business standpoint. It means that consumer demand will be
broadened and that further support will be given to the present
high levels of employment and incomes. It^means that new capital
investment will continue high for an indefinite period as compe
tition forces the building of new plants, and the replacement of
outmoded equipment.
When new types of goods are made available for consumers,
and are advertised and displayed in retail^stores, people buy
more. When prices are- reduced by more efficient production
methods, new demand levels are tapped and markets are broadened.
Production is thereby expanded, employment and incomes are
increased, and the entire nation is benefited.
Consider, for example, what the television industry alone
has done recently toward broadening consumer demand, expanding
capital investment, and increasing employment and incomes.
The thousands of other new and improved products, which are
similarly contributing their part toward expanding industrial
activity, have doubtlessly been an important factor in the busi
ness rise this spring. We should not underestimate their
aggregate importance in the business outlook.
Looking toward the future, the chemical industry is well
qualified to visualize the potentialities of bur further
scientific progress in the years ahead. With the accelerated
trend of new discoveries in many scientific fields, there is
every reason to believe that our progress in the present decade
will be even greater than the remarkable advance we made in
the decade of the 1940!s. . No one^knows better than you in the
chemical industry ho?/ many promising fields of research await
fuller exploration, and how many products already developed
have yet to be fully tested in commercial application.
/33
a
- 4 Your confidence in the future is reflected in the recent
great expansion program of the chemical industry. During the
past ten years your plant investment has more than doubled,
and the expansion is still continuing.
Certain other industries -- notably the utility groups —
have shared your confidence, and are likewise building heavily
for the future.
On every hand, there is evidence that an era of dynamic
progress is under way. There is clear evidence, too, that
this advance is not being impelled by a speculative credit
expansion, as so often lias happened in the past. Instead, it
is a soundly financed movement, deriving its basic strength
from a broad and expanding consumer demand.
It^does^not take insight to discern this trend, and to ap
praise its significance in terms of one’s own business. The
evidence appears in the published statistics of population
growth, of incomes and retail trade, of industrial production
and employment, and in many other statistical data."
The United States is growing more rapidly' than ever before.
In the past 12 months we have added 2,500,000 to our population,
an annual increase greater than the population of any one of
26 individual states. Our birth rate increased sharply during
the w a r , and the high rate is being largely maintained.
The rapid population growth is not only increasing the
aggregate demand for all types of consumer goods, but it ‘s also
enlarging our requirements for houses, for schools and municipal
facilities, for electric power and other public utilities —
m short, for all the needs of a prosperous people.
Last year the basic soundness of our economic growth was
put to a rather severe test. Early in the year, when the
shift to normal buyers’ markets caused a sudden rush to liqui
date inventories, factory production was sharply cut back and
employees were thrown out of work.
But consumers showed almost no tendency to curtail their
buying. Total retail sales held up month after month near the
high levels of the previous year. Eventually the factories
were obliged to step up their production to fill depleted
inventories, and that upturn has developed into a prolonged
Throughout the United States today there is a feeling of
stability. Industrial production now is almost at the post
war high reached in the fall of 1948. Personal incomes,
including the special veterans* dividend, are at the highest
level in history. Excluding that dividend, the income rate
is higher than in any month of 1949 except January. Total
civilian employment is the highest on record for this time of
year, and the trend continues upward.
Consumer demand has increased noticeably this year, and
total retail sales, in actual unit volume, are now running
some 6 percent higher than a year ago.
The resistance which consumers showed last summer to any
curtailment in buying was backed up by a record volume of
personal savings. Th^se savings have since been further in
creased. Liquid assets of individuals in the form of cash,
checking and savings accounts, and Government securities, now
total more than $200 billion.
The basic expansion of our country is indicated by widely
varying indices. Since we entered the war in 1941, the number
of electric power customers has been increased by more than
one-third, but we are continuing to add 2 million more customers
annually.
In the same period, the number of telephone sub
scribers has been nearly doubled, but we are continuing to
install 2 million new telephones a year.
The greater business optimism recently has given rennved
encouragement to plant expansion. Contract awards in April
for new construction of commercial and manufacturing buildings
were 66 percent higher than in the same month last year. For
the first three months of this year the gain had been 22 percent
This resumed rise in plant investment is confirmed by an
upturn in new orders for heavy equipment. Orders for machinery
and for machine tools have both been rising sharply since the
third quarter of last year, with machine tool orders in March
at a four-year high. These are indications of steady economic
growth.
This strong forward movement in our economy is built on
a sound and conservative foundation. Business planning has
remained cautious. Inventories biave been kept at moderate
levels. Speculative activity in the commodity and security
markets has been no greater than normal. Bank loans have shown
no undue expansion, and the nation!s credit structure remains
strong* While consumer credit has expanded considerably, and
must be watched, it is not excessive in relation to consumers *
incomes.
In short, no significant
in the business picture, such
have always preceded business
the present situation shows a
First- if
elements of weakness have appeared
as those Y/hich, in the past,
downturns#
In nearly every respect
marked contrast to that after the
These numerous evidences of basic soundness in our economy
are an impressive.£eature of the business picture today. They
amply justify the confidence which the chemical industry and
feel
other industries have shown in building for the future.
assured that this firm business foundation can and will be
maintained. It will be maintained so long as we avoid excesses
of speculation or of credit expansion -- the primary causes of
business recessions in the past.
America is a young nation, with a!4 that this implies for
potential future growth. *Our economy reflects the attitude of
our people — progressive and readily adaptable to changing
conditions. In such an environment, inventive genius receives
its quickest rewards and scientific progress makes its most
rapid advancement.
You in the chemical industry, who have been in the front
line of the recent amazing progress in science and technology,
are well aware that this is likely to be but an introduction
to even greater achievements in the days not far ahead.
For despite the many current problems that are pressing
for solution, our national production and our national
income have exceeded all peacetime records. In the area of
finance, the Federal debt has been managed as part of a broad
financial program which has contributed much to the stability
and well-being of the Nation's economy.
In the field of
international relations, our people have shown a sympathetic
understanding and a willingness to offer assistance which
has strengthened the cause of peace throughout the world.
/Si
n
Looking back over the years of our national history, and
particularly this post-war period, one major fact stands^out.
That is the strength which our system of private enterprise
and representative government has demonstrated in the face of
constantly changing conditions. The obstacles we have overcome,
the progress we have achieved in all lines of endeavor, the
records we have, established
all stand as a tribute to the
character and the good faith of the American people, and to
their demonstrated ability to build an ever stronger nation.
0O 0
^7 -
RELEASE, MORNING NEWSPAPERS,
Tuesday, June 6, I960.
3i 7
Th© Secretary of the Treasury announced last evening that the tenders for
#1,100,000,000, or thereabouts, of 91-day Treasury hills to he dated June 8 and to a&tJ
September 7, 1950, which were offered on June 2, were opened at the Federal R e a e m Bad
on June 5.
The details of this issue are as follow*s
Total applied for - #1,603,724,000
Total accepted
- 1,102,296,000
Average price
(includes #85,845,000 entered on a
non-competitive hast* and accepted in
full at the average price shown below)
- 99*702 Equivalent rate of discount approx* 1.179$ per annua
Bangs of accepted competitive bids:
99*709 Equivalent rate of discount approx. 1*151$ per annuo
w
w
«
«
1.187$ * "
99.700
1*
High
Low
(32 percent of the amount bid for at the low price was accepted)
Federal Reserve
District
Total
Applied for
Total
Accepted
Boston
Hew York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
•
#
TOTAL
11,680,000
1,196,337,000
22,665,000
48,241,000
3,755,000
7,872,000
159,388,000
11,911,000
4,900,000
19,920,000
34,585,000
81.770.000
#1,603,724,000
11,340,000
755,677,000
14,705,000
44,841,000
3,755,000
7,872,000
114,688,000
11,643,000
4,900,000
19,920,000
34,585,000
78f370,000
•1,102,296,000
Ieiease m o r n i n g n e w s p a p e r s ,
[Tuesday, June 6 , 1950-_____
S-2357
The Secretary of the Treasury announced last evening that the
[tenders .for $1,100,000/000, or thereabouts, of 91-day Treasury bills
[to be dated June 8 and to mature September 7* 1950, which were
Offered on June 2, were opened at the Federal Reserve Banks on
tune 5 •
The details of this issue are as follows:
Total applied for - $1,603,724,000
Total accepted
- 1,102,296,000 (includes $85,845,000 entered
on a non-competitive basis
and accepted in full at the
average price shown below)
Average price
- 99*702 Equivalent rate of discount approx.
1.179$ Per annum
Range of accepted competitive bids:
High
- 99.709 Equivalent rate
1 .151 $
r- 9 9 .7 0 0 Equivalent rate
1 .187 $
Low
of discount approx.
per annum
of discount approx.
per annum
; (32 percent of the amount bid for at the low price was accepted)
Federal Reserve
district
Total
Applied for
[Boston
Few York
Philadelphia
[Cleveland
Richmond
Atlanta
[Chicago
ft. Louis
Minneapolis
fansas City
(hilas
Fan Francisco
$
1 1 ,6 8 0 ,0 0 0
1 ,19 6 ,3 3 7 ,0 0 0
2 2 ,8 6 5,0 0 0
48,2*1-1,000
3,755,000
7 ,8 7 2 ,0 0 0
1 5 9 ,888,000
1 1 ,9 1 1 ,0 0 0
4,900,000
19,920,000
3 / 5 8 5 ,0 0 0
8 1 ,7 7 0 ,0 0 0
TOTAL
$1,603,724,000
oOo
Total
Accepted
$
1 1 ,3 4 0 ,0 0 0
7 5 5 ,6 7 7 ,0 0 0
1 4 ,7 0 5 ,0 0 0
44,841,000
3,755,000
7 ,8 72 ,0 0 0
114,688,000
11,643,000
4,900,000
1 9 ,9 2 0 ,0 0 0
34,585,000
78,370,000
$ 1 ,1 0 2 ,2 9 6 ,0 0 0
FOR IMMEDIATE RELEASE
June 5» 1950______________
%
^
The y e a rly wheat and ■ wheat flo u r quotas fo r such products from
Canada prescribed in the P r e sid e n ts Proclam ation o f May 28, 19^1,
as m odified, -which opened May 29, 1950, were exhausted by en tries
qnri withdrawals fo r consumption presented a t the opening hour, 12:00
noon, e . s . t .
2,533,019 bushels o f wheat were o ffered fo r entry again st the
absolute quota o f 795,000 bush els.
As a r e s u lt, the importers o f
record f il in g the en tries o f wheat were perm itted to take d e livery
o f only 31.39 per centum o f the amount presented.
A to ta l o f U ,623,512 pounds o f wheat flo u r was presented fo r
entry under the absolute quota o f 3 , 8l5,000 pounds o f Canadian wheat
flo u r , sem olina, crushed or cracked wheat, and sim ilar wheat products
(not in clud in g any commodity u n fit fo r human consumption), which
resu lted in the release o f 82.52 per centum o f the flo u r covered by
each such en try.
‘
T R E A S U R Y
D EP A R T M EN T
Information Service
WASHINGTON, D .C .
IMMEDIATE RELEASE
Monday, June 5, 1930.
S-2358
The yearly wheat and wheat flour quotas for
such products from Canada prescribed in the
President's Proclamation of May 28, 194.1, as
modified, which opened May 2 9 , 1 9 5 0 , were ex
hausted by entries and withdrawals for consumption
presented at the opening hour, 1 2 :0 0 noon, e.s.t.
2 ,5 3 3 ,0 1 9 bushels of wheat were offered for
entry against the absolute quota of 7 9 5 ,0 0 0
bushels. As a result, the importers of record
filing the entries of wheat were permitted to
take delivery of only 31.39 per centum of the
amount presented.
A total of 4,623,512 pounds of wheat flour
was presented for entry under the absolute quota
of 3,815,000 pounds of Canadian wheat flour,
semolina, crushed or cracked wheat, and similar
wheat products (not including any commodity
unfit for human consumption), which resulted in
the release of 8 2 .5 2 per centum of the flour
covered by each such entry.
0O0
IMMEDIATE RELEASE
June 6 . 1950
The Bureau o f Customs announced today prelim inary figu re s showing the
i^ o r t s t o consumption o f commodities w ithin quota lim ta tio n s provided
fo r under the General Agreement on T a r iffs and Trade, from the beginning
o f the quota periods to May 27, 1950, in c lu s iv e , except as noted below,
as fo llo w s:
unit
Period and Quantity
Commodity
HJhole m ilk, fresh or
of
Quantity
Imports as of
May 27, 1950
Calendar year
3,000,000 Gallon
6,503
Cream, fresh or sour ............. Calendar year
1,500,000 Gallon
502
Quota in e ffe c tiv e fo r the
period A p ril through May 27
F is h , fresh or frozen ,
f il l e t e d , e t c . , cod,
haddock, hake, p o llo ck ,
cusk, and ro se fish . . . . . . Calendar year
26,235,738 Pound
a)
Quota fille d
Iffhite or Ir is h Potatoes:
c e r tifie d seed ...................... 12 months from 1^0,000,000 Pound
60,000,000 Pound
Se p t. 15, 19U9
Quota fille d
Quota fille d
Calendar year
(1)
5,000,000 Pound
U,1U6,173
The proviso to Item 717 (b) lim its the unports
fo r consumption, a t the quota ra te to 13 >117 , oJO
pounds during the f i r s t 6 months o f the calendar
year#
Due to a provision o f the P r e s id e n ts Proclamation No. 2769 o f
January 30, 19U8, in which the entry o f a sp e cifie d quan tity o f Cuban ^
fille r ^ to b a c c o , unstemmed or stemmed (other than cig a re tte le a f tobacco)
and scrap tobacco, a ffe c ts the ra te o f duty on such tobacco^fTom countrie
other than Cuba, a record was maintained o f imports from Cuba, w
P r e s id e n ts Proclamation No. 2888 o f May 13* 1950, makes i t unneces ary
to continue such record and the data w ill no longer be shown on the
re le a se . 10.107,6oU pounds o f such Cuban tobacco were imported fo r conS ^ t i o i during the period January 1 to «ay 20, 1950, in c lu s iv e .
TREASURY DEPARTMENT
Washington
IMMEDIATE RSIEASE
Wednesday. June 7. 1950
S-2359
The Bureau of Customs announced today preliminary figures showing the
imports for consumption of commodities within quota limitations provided
for under the General Agreement on Tariffs and Trade, from the beginning
of the quota periods to May 27, 1950, inclusive, except as noted below,
as follows:
Period and Quantity
Commodity
Unit
of
Quantity
Imports as of
May 27, 1950
Whole milk, fresh or
sour ................... , Calendar year
3,000,000
Gallon
6,503
Cream, fresh or sour ....,
Calendar year
1,500,000
Gallon
502
Butter ...................
Quota ineffective for the
period April through May 27
Fish, fresh or frozen,
filleted, etc,, cod,
haddock, hake., pollock,
cusk, and rosefish ..... , Calendar year
White or Irish Potatoes:
certified seed ....... .
..
other ......... .
12 months from
Sept. 15, 1949
Walnuts ...... .
Calendar year
(1)
26,235,738
Pound
cu
Quota filled
150,000,000
60,000,000
Pound
Pound
Quota filled
Quota filled
5,000,000
Pound
4 ,146,173
The proviso to Item 717 (b) limits the imports
for consumption at the quota rate to 13,117,370
pounds during the first 6 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 was maintained of imports from Cuba. The
President’s Proclamation No. 2888 of May 13, 1950, makes it unnecessary
to continue such record and the data will no longer be shown on the
release. 10,107,604 pounds of such Cuban tobacco were imported for con
sumption during the period January 1 to May 20, 1950, inclusive.
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, 19kl, as modified by the President's proclamation of April 13, I 9I42,
for the 12 months commencing May 29, 19k9> as follows:
"Wheat
Country
of
O rigin
Imports
Established s
Quota
r i f e y 29, 19h9, to
?May
1 9 $ 0 ,in cl.
(Bushels
(Bushels )
2 7 ,
)
795,000
Canada
China
Hungary
Hong Kong
■—
Japan
100
United Kingdom
A u stralia
100
Germany
*100
Syria
New Zealand
C h ile
100
Netherlands
2,000
Argentina
100
I t a ly
Cuba
1,000
France
Greece
100
Mexico
Panama
Uruguay
Poland and Danzig
Sweden
Yugoslavia
Norway
Canary Islan d s
1,000
Rumania
100
Guatemala
100
B r a z il
Union o f S o v ie t
S o c ia lis t Republics
100
100
Belgium
80U,OT
Wheat flo u r , semolina,
crushed or cracked
wheat, and sim ilar
wheat products
Established :
Imports
Quota
: May 29, 19^
• to May 27,
•
(Pounds)
(Pounds)
3,815,000
,000
13,0 0 0
13,000
8,000
75,00 0
1,000
5,0 00
5,0 0 0
1,000
1,000
1,000
I k , 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
795,000
2 h
_
—
M
w*
mm
—
mm
mm
mm
mm
mm
mm-'
mm
-
-
—
I
~
-
795,000
-
3 , 815,000
2,880
8,k00
-
875
137
-
-
1,330
-
-
32
**
*•
•*
* —
—
—
h,ooo;ow
3 , 828,6&
TREASURY DEPARTMENT
Washington
IMMEDIATE r e l e a s e ,
WflHnesday. June 7. 1950
S~23oO
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 proclamation of April 13, 1942,
for the 12 months commencing May 29, 1949, as follows;
Country
of
Ori gin
: Wheat flour, semolina,
;
crushed or cracked
Wheat
:
wheat, and similar
Î
wheat products
%
Established
s
Imports
Imports
*
Established ;
Quota
;
Î
May 29, 1949>
Quota
:May 29, 1949, to
• to May 27. 1950
iMay 27. 1950. incl.i
(Pounds) incl
(Pounds)
(Bushels)
(Bushels)
795,000
Canada
China
Hungary
Hong Kong
Japan
100
United Kingdom
Australia
100
Germany
Syria
100
New Zealand
Chile
100
Netherlands
2,000
Argentina
Italy
100
Cuba
France
1,000
Greece
Mexico
100
Panama
Uraguay
Poland and Danzig
Sweden
Yugoslavia
Norway
Canary Islands
Rumania
1,000
Guatemala
100
Brazil
100
Union of Soviet
Socialist Republics
100
Belgium
100
795,000
—
■—
'—
_
—
—
—
3,815,000
24,000
13,000
13,000
8,000
75,000
1,000
5,000
5/000
1,000
1,000
1,000
14,000
2,000
12,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
13000
3,815,000
2,880
8,400
875
—
137
—
—
_
—
1,330
_
—
—
—
_
—
—r
32
—
_
i
IMMEDIATE RELEASE
June 6u 195>0_______
The Bureau o f Customs announced today prelim inary fig u re s showing
the imports fo r consumption o f commodities on which quotas were pre
scribed by the P hilippin e Trade Act o f 19U6, from January 1 , 1950, to
May 27, 1950, in c lu s iv e , as fo llo w s:
Products o f the
P hilip pin es
:
:
Established Quota
Quantity
:
:
U nit o f : Imports as of
Quantity : May 27, 1950
•
•
•
•
•
•
850,000
Gross
2li*,l*85
Cigars ...........................
200,000,000
Number
n 5 ,6 o o
Coconut O i l ............ ..
14*8,000,000
Pound
1*5,220,019
Cordage •«••♦ ••••••
6,000,000
tt
R i c e ...............................
1,01*0,000
tt
Buttons «•*•••«•••♦ »•
Sugars
Tobacco
1,90U,000,000
Pound
6 ,500,000
Pound
1,1*87,081*
1*35,397,931*
liin’na'Ti naH _____
172,619
TREASURY DEPARTMENT
Washington
IMMEDIATE RELEASE
Wednesday. June 7. 1950
S-2361
The Bureau of Customs announced today preliminary figures showing
the imports for consumption of commodities on which quotas were pre
scribed by the Philippine Trade Act of 1946, from January 1, 1950, to
May 27, 1950, inclusive, as follows:
Products of the
Philippines
«
ft
:
:
%
Established Quota
Quantity
%
:
:
«
Unit of : Imports as of
Quantity : May 27, 1950
%
«
%
ft
Buttons ..........
850,000
Gross
214,485
Cigars ...........
200,000,000
Number
115,600
Coconut Oil .......
448,000,000
Pound
45,220,019
Cordage ......... f
6,000,000
n
Rice .......... TT t
1,040,000
h
1,407,084
-
(refined ....
Sugars
1,904,000,000
Pound
(unrefined
Tobacco ......
435,397,934
6,500,000
Pound
172,619
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, however, that
not more than 33-1/3 percent of the quotas shall "be filled hy cotton wastes
other than comher wastes made from cottons of 1-3/16 inches or more in stapls
length in the case of the following countries* United Kingdom, France,
Netherlands, Switzerland, Belgium, Germany, snd Italy;
Country of Origin
U n i t e d K i n g d o m .....
Canada.'.............
F r a n c e ..............
B r i t i s h India......
N e t h e r l a n d s ........
S w i t z e r l a n d . ........
B e l g i u m . ............
J a p a n . ...............
C h i n a .............. .
E g y p t ----- ----- C u b a ............ .
G e r m a n y ............ .
I t a l y ...............
Total8
Imports
To t a l imports
$E s t a b l i s h e d
Established 5
Sept.
20, 1949,
'• TOTAL QUOTA * Sept. 20, 1949, i 33-1/3$ of
s t o M a y 27. 195Ô iT o t a l Quota! t o M a y 27, 19501/ 1/
1 ,261,186
4,323,457
239,690
227,420
69,627 f
68,240
44,388 !
38,559
341,535
17,322
8,135
6,544 !
76,329
21,263 |
1 ,261,186
1,441,152
239,690
-
■*
75,807
75,807
75,807
UoU
25,443
7,088
5,482,509 !
l,66l,3U6
1,599,886
69,627
—
|
lU,632
-
w
-
1/ Included in total imports, column 2,
-oOo-
j
-
«■>
22,747
14,796
12,853
ll*,632
1
**
—
j
“
—
—
mm
j
j
**“
j
1 ,352,029
J
Ù/yol
uyol^JoC
IMMEDIATE RELEASE
June
1950_______
■&
¿kS»h*
'2
j
A e 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,
1949, to May 27,
1950, in c lu s iv e , except as noted below, are as follows:
COTTON (other than linters)
(In pounds)
Under 1-1/8" other
t h a n r o u g h or h a r s h
C o u n t r y of
Origin
u n d e r 3/4-"
Established; Imports Sept.
Quota
20, 1949, to
May
E g y p t and the
Anglo-Egyptian
Sudan'.. . . . . . . . . .
P e r u . ............
B r i t i s h I n d i a . ...
C h i n a . ...........
M e x i c o . ...........
B r a z i l . ..........
U n i o n of Soviet
Socialist Republ i e s . ............
Argentina, *....
.
H a i t i ..............
E c u a d o r ...........
H o n d u r a s ....... ..
Paraguay...*...«^
C o l o m b i a . ........*
I r a q . ............
British East
783,816
'247^952
2,003 , 4 8 3
1,37 0 , 7 9 1
8,883,259
618,723
475,12A
5,203
■237
9,333
752
871
124
195
A f r i c a . ..........
Netherlands East
I n d i e s . .........•
B a r b a d o s .........
O t h e r B r i t i s h ’'
W e s t Indies l / . ..
N i g e r i a .........
O t h e r British
W e s t A f r i c a 2 / . ..
Oth e r F r e n c h
A f r i c a 3 /•«......
A l g e r i a and T u n i s i a
h a r s h or rough 5/
I m ports peb. 1,
I m p o r t s Sept,
175,178
Il6,la8
8,883,259
U 8 0.337
-
21^321
5,377
20,
May 27,
1 2 5 3 _____________
U5,091,930
56U,117
37 3
-
3 U , 807,233
—'
—
.
—
—
—
—
—
—
-
-
-
—
-
«
-
**
mm
-
...
71,388
-
Less than 3/4”
1949,
1950,
to
May
27,
1
9
5
0
27, 1 9 5 0 ..
2,240
16,004
-
689
-
14,516,882
1/
27
3/
4/
5/
1 - 1 / 8 ” or m o r e
but less th a n
1-11/16” V
9,655,192
U 5 > 656,1*20
3 U , 807,233
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. for the quota period February 1>.1?50
Established Quota - 70/000,000.
January 31, 1951, xnclusiv *
TREASURY DEPARTMENT
Washington
Bf-IEDIATE RELEASE
Wednesday f June 7. 1950
S-2362
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,
1949, to May 27, 1950, inclusive, except as noted below, are as followsj
COTTON (other than 1inters)
(in pounds)
Country of
Origin
Under 1-1/8” other
than rough or harsh
under 3/ 4 u
Establishedilmports Sept 0
Quota
:20, 1949, to
•May 27, 1950
Egypt and the
Anglo-Egyptian
783,816
Sudan
247,952
Peru <5British India0ooo 2,003,483
China -<ni->nrioe>oo^O 1,370,791
Mexico * n««
o.»A9 8,883,259
Brazil
618,723
Union of Soviet
Socialist Repub
475,124
lic Se'-"i'>nrt^'i''oono
Argentina,,,
5,203
ífeltl <Snr>H -joO ^ ^O
237
liiCUddoro c
^*r>& ■'
9,333
752
Honduras »**-3i*^e*
Paraguay* ** *„,
871
124
Colombia,¿X * -^ o©
Iraq0 •>^ ^n ^ ^ ■»o
195
British East
2,240
Africa* i*o - -*«• >«
Netherlands East
71,388
Indltds 2o ^^ ^ & o ~oo
Barbados -a * Ji
Other British
21,321
West Indies l/*oo
5,377
Nigeria* * *•><>-->**
Other British
-est Africa 2/***
16,004
Other French
Africa 2/ * *
689
Algeria and Tunisi.a
1 4 ,516,882
jl-l/S1* or more : Less than 3/4n
•but less than jharsh or rough 5/
il-11/16” V
f
_____
‘Imports Feb» 1 , ‘Imports Sept* 20,
fi?50, to May 27/1949, to May.27,
*1950
*1950
8,883,259
480,337
45,091,930
564,117
373
34,807,233
-
-
~
-
-
175,178
116,418
,
_
-
- -
_
-
-
—
-
—
-
—
—
-
—
_
45,656,420
34,807,233
—
9,655,192
—_
±/ vuxier unan tjaroauos, nermuaa, u»iua.j.oa., xxxuxuau, aim xuua^u«
2/ Other than Gold Coast and Nigeria*
3/ Other than Algeria, Tunisia, and Madagascar*
U Established Quota - 45,656,420 for the quota period February l,jfl950 to
c, January 31, 1951, inclusive*
5/ Established (Juota - 70,000,000*
/5T>
2
-
COTTON WASTES
(In pounds)
COTTON CARD STRIPS made from cotton having a staple of less than•
in length COMBER WASTE, LAP WASTE, SLIVER WASTE, AND ROVING »¿ASTE, WHETHER
OR NOT MANUFACTURED OR OTfiEHBISS ADVANCED IN VALUE: Provided, however, that
not more than 33-1/3 percent of the Quotas shall be filled by cotton pastes
other than comber wastes made from cottons of 1-3/16 inches or more in staple
length in the case of the following countries: United Kingdom, Prance,
Netherlands, Switzerland, Belgium, Germany, and Italy:
___
*Established: . Imports
:
• Total imports
Country of Origin: E#baoljshed
} gQp
, I
4
20, 1949, : 33-1/3$ of: Sept«, 20, 1949,
TOTAL QUOTA . to'
27, 1950»Total Quota; to May 27, 1950 1/
United Kingdom0«w•
Canada n >< > » ^ * o ■»©
France -> o V„* British India«© -o©
Netherlands 9 ->- -- Switzerlando * • >
Belgiuills O, « O o. 0 * - , 0 0 0
Japan ~j|U*« 7* * *Vv<* *
ChinaJ|<7« *
*‘7$,*
Egypt Cuoa 3 'O o -I1 0A Ao ->oo
Gemany,** --i - - -o
X ualy o o o o ~ - *• o o o o o
Totals
4,323,457
239,690
227,420
69,627
68,240
44,3Sb
38,559
341,535
17.322
8,135
6,544
76,329
21.263
5,482,509
1,261,186
239,690
75,807
69,627
14,632
—
404
1,661,346
1/ Included in total imports, column 2 0
-oOo-
1,441,152
1,2a,1 8 6
75,807
-
75,807
—
22,747
14,796
12,853
—
—
25,443
14,632
—
~
7,088
404
1 , 599,886
1 ,352,029
T
T R E A S U R Y
D EP A R T M EN T
Information Service
WASHINGTON, D .C .
IMMEDIATE RELEASE,
June 6, 1950.
Tuesday,
Secretary Snyder today made public a new Bureau of Customs
publication, "Customs Information for Exporters to the United
States ."
The publication is a comprehensive handbook for foreign
traders. It sets forth in layman’s language the chief require
ments for the entry of merchandise to the United States.
A triple benefit is expected from this publication. Dis
tribution of it should lead to facilitation of the work of the
Customs Bureau, through improvement in the documents submitted
to the Bureau by foreign shippers, and through a general better
understanding on the part of foreign traders of Customs pro
cedures as prescribed by law. The foreign suppliers to the
American market should find the handbook helpful at almost every
stage of their business. Finally, American importers will be
aided by the simplified statement of Customs requirements.
The handbook was prepared in consultation with a large number
of representatives of private business. Various business organi
zations gave the Customs Bureau the benefit of their views on the
undertaking, and information gathered abroad as to misunderstand
ings of Customs procedures also was given consideration.
The handbook is one of the major projects in the Treasury's
efforts to facilitate foreign trade through simplification of
Customs procedures and the widest possible dissemination of infor
mation about these procedures.
An earlier publication, "Customs Hints", intended for persons
entering the United States, has had a distribution of more than
a million copies through Government and private channels.
The Treasury hopes that as private concerns, such as
transportation companies and travel agencies, reprinted the Customs
Hints pamphlet and circulated it very widely, so private concerns
interested in one phase or another of foreign trade will generously
reprint and distribute the "Customs Information for Exporters to
the United States" handbook.
tri
-
2
-
A leaflet of Customs information for operators of private
making international flights, is now in preparation.
aircraft
The ninety-three pages of "Customs Information for
Exporters to the United States" contain:
Detailed instructions for meeting United States
Customs requirements.
Facsimiles of correctly prepared invoices and
other documents.
A list of Customs districts, headquarters ports,
ports of entry, airports of entry, and other data.
Copies of the handbook may be had from the Government
Office at 25 cents each. Single copies may be obtained
from the Collectors of Customs or from the Bureau of Customs in
Washington.
Printing
In foreign countries it will be distributed through the
offices of Treasury representatives and other channels. Several
foreign governments have indicated they will prepare translations
of the handbook for their nationals.
Further data on the contents of the handbook may be had from
the Customs Bureau or the Treasury Information Service.
0O0
purposes of taxation the amount of discount at which Treasury bills are originally
sold by the United States shall be considered to be interest.
Under Sections 1|2
and 117 (a) (1) of the Internal Revenue Code,, as amended by Section 115> of the
Revenue Act- of 19Ul* the amount of discount at which bills issued hereunder are sold shall not be considered to accrue until such bills shall be sold, redeemed or
otherwise disposed of, and such bills are excluded from consideration as capital
assets.
Accordingly, the ovmer of Treasury bills (other than life insurance
companies) issued hereunder need include in his income tax return only the
difference between the price paid for such bills, whether on original issue or
on subsequent purchase, and the amount actually received either upon sale or
redemption at maturity during the taxable year for which the return is made, as
ordinary gain or loss.
Treasury Department Circular No. Ul8, as amended, and this notice, prescribe
the terms of the Treasury'bills and govern the conditions of their issue.
of the circular may be obtained from any Federal Reserve Bank or Branch.
Copies
-
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 orice (in three decimals) of accepted competitive oicis.
Settlement for
accepted tenders in accordance with the aids must be made or completed at the
Jams 1
19f>0
j in cash or other immediately avail1" ' t/BA
TJ'C
able funds or in a like face amount of Treasury bills maturing
June l£. 19$0
Federal Reserve Bank on
&
Cash and exchange tenders will receive equal treatment.
Cash adjustments will he
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 supp-miemI
tary thereto.
The bills shall be subject to estate, inheritance, gift or other
excise taxes, whether Federal or State, but snail be exempt from all taxation now
or hereafter imposed on the principal or interest,thereof by any Stare, or any o
the possessions of the United States, or by any local taxing authority.
For
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Friday, June 9, 1950.
--------—x—z----------- y-frr—• r'
11 1 “
XXg
The Secretary of the Treasury, by this public notice, invites renders for
& 1.000.000.000 > or thereabouts, of
—
---
91 -day Treasury bills, for cash and
" W
in exchange for Treasury bills maturing.
Jane 15^^1950_____ >
issued on
a discount basis under competitive and non-competitive bidding as hereinafter
The bills
will mature
interest.
of
this series will be dated
Jane 1 1 9 5 0
_
provided.
>
an(*
1 )|t 19^0 ? 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, $ 5 0 0 ,0 0 0 , and $1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the
Daylight Saving
closing hour, two o ’clock p.m., Eastern /gESffl&SEA time, Monday, Jane 12, 195®--
gwc
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 th e
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
t r e a s u r y
d e p a r t m e n t
Information S e rv ice
RELEASE MORNING NEWSPAPERS, • Friday, June 9, 1950-_ /
Wa s h in g t o n , d . c .
S-2364
The Secretary of the Treasury, by this public notice, invites
tenders for $ 1 ,0 0 0 ,0 0 0 ,0 0 0 ,.or thereabouts, of 9 1 -day Treasury
tills, for cash and in exchange for Treasury bills maturing ;
June 15, 1950, 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 15, 1950, and will mature'
September lA, .3-950, 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
$l,OQOyQOO (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 12, 1950. Tenders will not be received in. 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 us.ed.,1 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.
'■Tender’s will be received without deposit from incorporated, w
hanks" and' trust companies and from responsible and recognised \ ..
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 a n . .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.
o
c.
Sett3 ement for accepted tenders in accordance with the bids must
be made or completed at the Federal Reserve Bank on-June 15, 1950,
in cash or ottor immediately available «toda or 1 « ^ like face
amount of Treasury bills maturing June 15.,-.1950, Gash and
exchange tenders will receive equal treatment. Gash 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
Save any exemption, as such,, and loss from the sale or other
disposition of Treasury bills shall not have any special treatment,
as buch, under the Internal Revenue Code or laws amendatory or
supplementary thereto. The hills shall be sub^eot to eitate^, ._
inheritance gift or other excise taxes, whether. Federal or State,
btostoll be exempt from all taxation now or hereafter imposed on
the principal or Interest thereof by any State, or anj, of th
.
possessions of the United States, or by any local taxxng ^hority.
For purposes of taxation the amount of discount at which treasury
bills are originally sold by the United States
to « * * g ° * g
to be interest* Under Sections 42 and 117 (a) (1) of the Internal
Revenue Code, as amended by Section 115 of the Revenue Act of 19^1,
the amount of discount at which bills issued
a.l*o s° ^ d
shall hot be considered to accrue until such
®°ld’
redeemed or otherwise disposed of, and such tills
.
of
from Consideration as capital assets. Accordingly,^the owner^of
Treasury bills (other than life insurance companies)
f .
under need include in his income tax return only the differenc^
between the price paid for such bills, whether
°riglna_ lssu_
or on subsequent purchase, and the amount actually received either
upon bale or redemption at maturity during the taxable year for
which the return is made, as ordinary gain or loss,
treasury Department Circular TTo. 4l8, as am ended, arid this
prescribe.the terms of the .Treasury* bills and govern the
•conditions of their issue. Copies of the circular may be obtain
from any Federal Reserve Bank or Branch.
n o tice ,
0O0
T R E A S O R Y DEPARTMENT
F i s c a l Service
STATUTORY DEBT LIMITATION
as
.........
OE
W a shington, .
.
.
.
^ ( J
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 ), "s h a ll not
exceed in the aggregate $275,OCX),000,COO 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.1'
The following table shows the face amount of obligations outstanding and the face amount which can s t i l l be
t%
issued under this limitation:
$275,000*000,000
Total face amount that may be outstanding at any one time
^Outstanding
\ Obligations issued under Second Liberty Bond Act, as amended
' mterest-bearig:...................... .
\
Treasury
Certificates of indebtedness....
*
. $ 13,022.93^,000
Treasury notes
Bonds ^ b Treasury.................... *•
2 .7
Savings (current redemp.value)
j
2
Depositary.
2^7 Armed Forces Leave......... ...
<7b Investment series.............
¿^Special Biinds *7 ? Certificates of indebtedness.
3
.Treasury notes........... .
ff? ^ Total interest-bearing..*««.*.«-
23,436,862,000
23 .878.236.800
102,795 .261,500
57 .A77 .15A.20A
288,266,500
303 ,202,750
953.550,000.
18.017 .300.000
13.850.252.000
■?L Matured, interest-ceased.
60 , 338 , 031,800
l6 l,8 1 7 ,A 3 A ,9 5 A
31 .8 67 .5 52.00 0
25A,023,018,75A
276,197,170
%?
^ B e a r i n g no interest:
T-7-2 War savings stamps.............
T O Excess profits tax refund bonds,...
4 9 ,2 0 1 ,6A1
3 ,4 0 6 ,6 2 8
to Special notes of the United States:
iy(^
I n t e m a t '1 Monetary Fund series..
Total...... ............ ...... .
1^
1 .27 0.00 0.0 00
................................
1.3 2 2 .6 0 8 ,2 6 9
255,621,824,193
Guaranteed obligations (not held by Treasury ):
J L Interest-bearing:
1fh
Debentures : F.H,A.
Demand obligations: C,C.C.
15 ,500,686
___
2 .06 5,95 6
i{9 Matured,, interest-ceased............. .
17 ,566,642
2 .4 8 0 ,3 7 5
20,047,017
ig ( Grand total outstanding...... .......... ........... ***..... .
■T^Balance face amount of obligation^ issuable under above authority.
ç ' Reconcilement with Statement of the Public Debt C V
bS
(Daily Statement of the United States Treasury,
ÓL3
.a°i
May 31, 1950
June 1, 1950
)Deduct - other outstanding public debt obligations not subject to debt limitation,.....
/
v "
.
10.358,128,79»
Outstanding ') Total gross public debt................ ‘.♦.••• ?
V Guaranteed obligations not owned by the Treasury.................
9 Total gross public debt and guaranteed obligations,..«....«....
Ü
<? .
7 5 641 871
256,350.132.73
20.0AZìSÌZ
256,37M 79/|
255,641, 871.210
STATUTORY DEBT LIMITATION
AS OF MAY 31» 1950
June 12,1950
Section 21 of the Second Liberty Bond Act, as amended, provides that the face
amount of obligations issued under authority of that Act, and the face amount of
obligations guaranteed as to principal and interest by the United States (except
such guaranteed obligations as may be held by the Secretary of the Treasury), "shall
not exceed in the aggregate $275*000,000,000 outstanding at any one time. For pur
poses o f 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 i s s u e d u n d e r S e c o n d L i b e r t y B o n d Act, as a m e n d e d
Interest-bearing:
T reasury b i l l s . . ............ .
Certificates of indebtedness,«
Treasury notes..............
$ 13,022,934,000
23,436,862,000
23.878,235.800
$60,338,031,800
Bonds Treasury. •............. .
102,795,261,500
Savings (current re demp* value) 57,477,154,204
Depositary............
288,266,500
Armed Forces Leave..«......
303,202,750
Investment series..........
953,550.000
161,817,434,954
Special Funds Certificates of indebtedness
18,017,300,000
Treasury notes.... ...... ...
13,850,252,000
Total interest-bearing........ .......
Matured, interest-ceased....... .............. ...
31,867,552,000
254,023,018,754
276,197,170
Bearing no interest:
War savings stamps........ .
49,201,¿41
Excess profits tax refund bonds
3,406,628
Special notes of the United States:
InternatTl Monetary Fund series 1,270,000,000
1.322.608,269
Total..........................c
¡17 2551621^82^193
Guaranteed obligations (not held by Treasury):
Inte re st-be a rin g :
Debentures: F.H©A* ..... »...
15,500,686
Demand obligations: C.C.C. ...
2,065,956
17,566,642
Matured, interest-ceased....... ............. .
...... 2,480,375
20,047,017
Grand total o u ts ta n d in g .....................................................................................
balance face amount of obligations issuable under above authority..*
255.641.871,210
19,358,128,790
Reconcilement with Statement of the public Debt - May 31, 1950
(Daily Statement of the United States Treasury, June 1, 1950
Outstanding —
I Total gross public d e b t . . . . . . . . . ......... ..................... ............................ ..
256,350,132,734
Guaranteed obligations not owned by the Treasury......... .
j iotal gross public debt and guaranteed obligations..... .
|eauct - other outstanding public debt obligations not subject
to debt limitation................. .................. .
20,047,017
256,370,179,751
[S-2365
728,308,541
255,641,871,210
RELEASE, MORNING NEWSPAPERS,
Tuesday, June 13. 1950.
Tli* Secretary of the Treasury announced last evening that the tenders for
#1,000,000,000, or thereabouts, of 91-day Treasury hills to he dated June 16 and to mturi;
September 14, 1960, which were offered on June 9, were opened at the Federal Receive Banks!
on June 12«
The details of this issue are as follows:
Total applied for - ♦1,611,725,000
Total accepted
* 1,002,665,000
Average price
(includes ♦98,862,000 entered on a
non-competitive basis and accepted in
full at the average price shown below)
- 99*705 Equivalent rate of discount approx. 1.177% per annum
Range of accepted competitive bids:
High
Low
- 99*706 Equivalent rate of discount approx. 1.163% per annum
- 99.701
*
*
*
*
*»
1.183% *
•
(34 percent of the amount bid for at the low price was accepted)
Federal Reserve
District
Total
Applied far
Total
Accepted
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
♦
♦
TOTAL
16,377,000
1,184,020,000
24,166,000
23,583,000
11,030,000
12,326,000
195,752,000
11,564,000
4,140,000
35,578,000
29,005,000
63.680.000
♦1,611,725,000
15,877,000
714,231,000
15,489,000
17,122,000
9,950,000
12,166,000
120,152,000
3,539,000
3,908,000
24,754,000
17,157,000
43.220.000
#1,002,565,000
T R E A S U R Y
D EP A R T M EN T
Information S e rv ice
Wa s h in g t o n , d . c .
release m o r n i n g n e w s p a p e r s ,
Tuesday, June 13, 1950._____
S -2366
The Secretary of the Treasury announced last evening that the
tenders for $1,000,000,000, or thereabouts, of 91-àay Treasury bills
to be dated June 15 and to mature September 14, 1950, which were
offered on June 9* were opened at the Federal Reserve Banks on
June 12.
The details of this issue are as follows:
Total applied for - $1,611,725,000
Total accepted
- - 1,002,565,000 (includes $98,862,000
entered on a non-competitive
basis and accepted in full
at the average price shown
below)
Average price
- 99*703 Equivalent rate of discount approx.
1 .177 $ PeP annum
Range of accepted competitive bids:
High
- 99*706 Equivalent rate
1 .163 $
- 99.701 Equivalent rate
1 .183 $
Low
of discount approx.
per annum
of discount approx.
per annum
(34 percent of the amount bid for at the low price was accepted)
Federal Reserve
District_____ _
Total
Total
Applied for___________ Accepted
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Balias
San Francisco
$
16,377,000
1,184,020,000
24.165.000
2 3 .5 8 8 .0 0 0
1 1 ,0 3 0 ,0 0 0
1 2 ,8 2 6 ,0 0 0
195,752,000
11.564.000
4,140,000
35.578.000
2 9 .0 0 5 .0 0 0
6 3 .6 8 0 .0 0 0
TOTAL
$ 1 ,6 1 1 ,7 2 5 ,0 0 0
0O0
$
15,877,000
714.231.000
15.489.000
1 7 .122.000
9 ,9 5 0 ,0 0 0
1 2 ,16 6 ,0 00
120 152.000
.
8.539.00 0
3 .9 0 8 .0 0 0
24,75^,000
17 ,157,000
43,220,000
$ 1 ,0 0 2 ,5 6 5 ,0 0 0
Ions wiI I shape
sosey !gtion.
But in
As members
rrstitute of
t
ican
rs«* vou have
continued soundness of our credit
- 31 and of every individua I American
¡1^11 |\ '
to see that our economic structure
is stronger than ever before,
f©
must continue to oemonstrate the
effectiveness of our system of free
enterprise in opening up the resources
of our country, and spreading their
benefits across the Nation,
ft must
continue to prove that our form of
Government offers the individual
greater opportun¡ties than any other
system of Government in the world today
I I P Pig
jg
volume than a year ago.
production
peacetime
Industrial
is now* close to the record
level reached
19^8, while employment
in the fall of
in May was at
The business advance so
given very
fa r
has
little indication of
underlying wea«ness.
The prevailing
spirit of confidence has shown
no signs of developing
excessive optimism.
into
Business
planning generally has remained
27
b fp'h level.
Aided by the spec is I
insurance dividend to veterans,
11||£j|■
persona I tncoffl.es this year ere th
highest on record.
Even without
dividend, current incomes are ebo
the corresponding period last ye?
Retail sales throughout the
postwar period have reflected a
basic confidence in the economic
out
Io
o k
.
During the readjustment
In expanding
ü b rk
t here -
A
world
eatest «llfâ it in
e increasing output of American
jr¡culture and American industry
rr
k
Today, as in the past,
■ *f iW*i
icr-n marKet is a
¡c force
inp for business expansion
The current rate of population
means
dur ing 1950 a Ione
if
the Amer¡can
by 2-1/2 million peopI &
I
there has been a very rapid increa € A
i. Tuf
*** J?n#V^î^
movement in our national economy.
They are supported by our rapidly
, our continued
growing | {% mrisß
high income levels, our strong
creo
: and financial situation,
eat technical progress
e capital
înv es
of recent years
s prov
Th
I T s'Ç3?
^ 1 ri
1
st
nth has been an
ant factor in it-ft&
n
country.
rr™*-^4 %%
It has provided
k single new plant tor concentra t ing
ores of tnis type -- now in the
process of construction -- will,
I |p§: tola, have an annual capacity
of one >fi I Iion tons.
The sawe thin I hat.
in the chemica I industr
meta I a l Ioys ~
of ail,
science.
most strikingly
in agriculture and soil
In almost every field
cu
The aiscover y of the M m n e s
iron ore reserves, for example, was
an event of extreme importance »
economic history of this
try.
It is iess well Known, but highly
Important, that improvements in
arts of mining and mineral processing
since i
en m g of the Mesab i nane
are or almost eoua I significance with
e discovery itself.
Intensiv
research programs have led to method
w
oncentratine low-grade ores which
In the days of the early
i:ront iersrnen and prospectors who
came by river ana over land to this
part of the country, very little
more was required in the way of
assets than.a large fund of courage
ana d.terminâtion.' But the later
development of our western states
could not have taken place without
the substantial
capital funds.
investment of
standards of living ever hi O
I.ne processes ot production
mar ft®1 1 ng.
e ca i
increasin O
C
services of finance.
n ta I work necessary
pave the way for mass output and
pii cati on
new techo î
'%
*>»
17
of new jobs opened up.
it is
interesting to consider that today,
a significant proportion of the
wage earners in manufacturing
alone are producing commodities
or services that in 1900 were
produced in the household.
In
addition, millions of our people
are employed in turning out products
or services which were either
unknown in 1900 or available to.
only a limited few.
As our economy
Cl
-
I
r of i960., over $5 billion was
QU â
Inves
in modernization and in new
plant and equipment, making a record
total of more than SS5 billion in
9
twar peri
icant
S II
as an indication
Americans
In
ir future.
ficant as an indication
the important function
bank ing
d by
f inance in this country.
at function is
s iness of
¡nous trîa
fi nane Ing
tremendous vol um
In America,
li is estimated
mechan ization a
100 years, has
tnoustry is co
ha If century,
§ I||Ì by
p
u
&
COI
I
111
ns.
1
Q n
ss
Their true
o
8 decades
oeri 0 «.
f*
sma i I
estesi industriai
12
ever before.
I have noted that the
founders of your association -• with
some courage,
I may say —
field of commercial
subject of study.
Como
chose the
law as their first)
At that time, »
11 at ion of "Federal Laws Affecting
Nations I BanKs" reouired only 63
pages.
Today, almost 500 pages are
needed to cover the ground.
This is
ju st one illustration of the
complicated nature of modern f inane i
operations as compared wi th the
¡vidual abilities have been further
[¡er ?can concent of
encouraged by
education as
r\
O
f*
V
i n u i ns*
a
i in the
business of daily living.
own association, the America
Institute of Banning, grew out of the
«He cvP
b inessmen.
of nrsrf.insl
prac t SC fi i bus
r*\v/ 1
r j0C|
ckjf|0 3 1
lusa
jCtf*
k
O ?V
0
its
y& H r S |
irtg rea I ìzatio
at do
S IfiCtSS tn tnB
Atier ic i
economy calls for
amie
v
Ô
-
8
~
adjustments to new Knowledge, new
tastes, and new surroundi ngs.
The
tremendous surge westward of American
industry during and since the war
with its iiscplication of copulation
changes and community developments *«
is an instance in point.
This atmosphere of change -- of
newness ***•■ which has been the
env Ironment of each generation of
Americans, has had a significant
influence on our development.
It
ary to e v a 1u§ te
and to trans i«te
the r ij|ht answer
bus iness
a Iwavs
of
OKing has
ba !
senteci particularly
lean
to
banKers,
U w v €2
A
e invests
of funds recru 1res an »valuation
e, a
of the
conditions are always
nns
i
in
of the fro
e are continually having
1416 r\
techn{oues of credit analysis have
been enormously extended in the
years since your association was
founded.
;
’
Today, every Importantgcredit
decision calls for a mass of
specific information and analysis,
it calls for a wide bacKgrounri
Knowledge of national business
trends and their significance
locally.
And, finally,
It calls
for the education and the
g||
outside
of the leading financial
ijSjjpSP
centers,
its success depended
almost entirely on personal Knowledge
of local prospects and local
borrowers.
Credit decisions on this
basis were by no means- easy,'.as
Itr. Kent and others whose experience
goes baCK that far will testify.
The quality of judgment has remained
the most important single ingredient
of successful
'fa
aottifig, but
investment onera
young ladles were not employed
with a vI ft toward reducing salaries,
sine© their
was to be the same
as the men -
5 a month at the
start
1 need not remind this audience
of the increasingly important
responsibiIitles which the business
women of this country have undertanen
since the time when this news item
was printed
H®
-
2
your attention to a news Itern which
appeared in one of the early bulletins
of your Institute published in 1901.
t that time, a trust cosrtoa ny
In Chicago had just installed 13 glrlsj
at the tel Ier*s windows in its
savings department.
This was certeinlj
news of great interest in th® banning
world, since these girls were said
to be the only ones to hold such
positions in th© United States.
report further stated that these
The
TREASURY DEPARTMENT
Washington
The following address by Secretary Snyder before
the forty-eighth
Annual Convention of the American Institute of Banking, Lyceum Theatre,
Minneapolis,
1« scheduled for delivery at about 11
C. s. T.. on Monday> June 12. 1950. and isxf for release on delivery.
MODERN BANKING
id
11
TREASURY DEPARTMENT
Washington
The following address by Secretary Snyder
before the Forty-eighth Annual Conyention
of the American Institute of Banking,
Lyceum Theatre, Minneapolis, Minnesota,
is scheduled for delivery at a b out -11 a» m . ,
jrrirryTr~c^^
e
’for-'release on delivery.
is
MODERN BANKING
I am delighted to be here today to participate ^with
you in the 50th anniversary celebration of the American
Institute of Banking. It is particularly interesting to
note the large number of women who have come as delegates
to the meetings this year. This represents <juite a change
from the first years of your association's history. In
this connection, I would like to call your attention to a,
news item which appeared in one oi the early bulletins of
your Institute published in 1901.
At that time, a trust company in Chicago had just
installed 13 girls at the teller's windows in its savings
department. This was certainly news of great interest m
the banking world, since these girls were said to be the_
onlv ones to hold such positions in the United States. The
report further stated that these young ladies were not
_
employed with a view toward reducing salaries, since their
pay was to be the same as the men *■*“ $25 a month at the
start.
I need not remind this audience of the increasingly
important responsibilities which the business women^of
this country have undertaken since the time when this news
item was printed.
The expanding opportunities for those of you in the
banking field during the past 50 years have reflected t e
growing importance of our banks and of our financial
institutions generally in the business life of the Nation.
S-2367
Fifty years ago, the business of banking in this^country
was a far different matter from the complex loan ana invest
ment operations of today. In most communities outside ot the
leading financial centers, its success depended almost entirely
on personal knowledge of local prospects and local borrowers.
Credit decisions on this basis were by no means easy, as
Mr. Kent and others whose experience goes back that far will
testify. The quality of judgment has remained the most im
portant single ingredient of successful banking, but the
techniques of credit analysis^have been enormously extended
in the years since your association was founded.
.Today, every important credit decision calls for a mass
of specific information and analysis. It calls f°r a wide
background knowledge of national business trends and their
significance locally. And, finally, it calls for the education
and the experience necessary to evaluate all of the tacts ana
to translate those facts into the right answer.
The business of banking has always presented particularly
difficult problems to American bankers, because the^investment
of funds requires an evaluation of the-future, and in America
conditions are always changing. Today, as in the days of the
frontier, we are continually having to make adjustments to new
knowledge, new tastes, and new surroundings. The tremendous
surge westward of American industry during and since the war —
with its implication of population changes and communi y
developments -- is an instance in point.
This atmosphere of change — of^newness
^which has
been the environment of each generation of Americans, has
had a significant influence on our development.
£on~
tribute! in an important measure to making us a Nation ox
strong individuals, constantly alert to new opportunities
and new ways of doing things. These particular traits oi
the American character have been fostered also by our representative system of government. They have been strengthened
by the fact that our free enterprise system puts a premium
on initiative, resourcefulness, and^ability to see a job
through. And, as the pace of activity has quickened,
individual abilities, have been further encouraged by the
American concept of education as a continuing aid m the
business of daily living.
M
- 3 Your own association* the American Institute of Banking*
grew out of the needs of practical businessmen.
Its in- #
creasing services* over the years* have reflected the growing
realization that doing business in the dynamic-American
economy calls for a constant flow of new facts* and a con
stant reappraisal of old ones. Throughout the 50^years of
the Instituted history, your members have recognized that
practical experience is most valuable when it is enriched, by
broad background information and by the training needed to
put that information to good use«
Today the need for services such as those provided by
the American Institute of Banking is greater than ever before.
I have noted that the founders of your .association --.with
some courage* I may say -- chose the field of commercial law
as their first subject of study* At that time*^a compilation
of "Federal Laws -Affecting National Banks required only
63 pages * Today* almost 500 pages are needed to cover the
ground* This is just one illustration of the complicated
nature of modern financial operations as compared vyith the
situation a half or even a quarter of a century ago.
The achievements of-American banking during the past
half century* however, cannot be measured alone by reference
to the growing complexities of banking operations* Their
true measure is the progress of our country during this
period* In the decades since 1900, we have changed from a
predominantly rural and small town economy to the greatest
industrial organization in the world© And industrial
development has required/ financing. It has required a
tremendous volume of capital investment*
In America* the capital fortunately has been forthcoming.
It is estimated that the process of mechanization alone, over,
the past 100 years, has taken capital goods valued at over
$600 billion* And this year, as you know* American industry
is continuing its program of expansion* During the first
quarter of 1950* over $5 billion was invested in modernization
and in new plant and equipment* making a record total of more
than $95 billion in the postwar period as a whole*
These dollar sums are significant as an indication of
the faith which Americans have in their future* They are
significant as an indication of the important function
- 4 performed by banking and finance in this country. That
function is the business of assisting Americans to turn out
materials and services and merchandise for people to use.
It has taken considerable financing to^carry new
products-, new ideas, and new mechanical ,devices of all
kinds into millions of American homes and factories and
farmso In the process, many industries which were flour
ishing in 1900 have all but disappeared. But as older
techniques and older products were replaced, millions of
new Jobs opened up, It is interesting to consider that
today, a significant proportion of the wage earners in manu
facturing alone are producing commodities or services that
in 1900 were produced in the household. In addition, millions
of our people are employed in turning out products or
services which were either unknown in 1900 or available to
only a limited few. As our economy has become more complex
and our standards of living ever higher, the processes of
production and marketing have called to an increasing ex
tent on the specialized services of finance. And the develop
mental work necessary to pay the way for mass output and
for the extended application of new techniques has depended,
at every stage, on capital.
In the days of the early frontiersmen and prospectors who came by river and over land to this part of the country,
very little more was required in the way of assets than a
large fund of courage and determination. But the later
development of our western states could not have taken place
without the substantial investment of capital funds.
The discovery of the Minnesota iron ore Reserves, for
example, was an event of extreme importance in the economic
history of this country. It is less well known,-but highly
important, that improvements in the arts of mining and
mineral processing since the opening of the Mesabi Range
are of almost equal significance with the discovery itself.
Intensive research programs have led to methods of con
centrating low-grade ores which are opening up vast new
reserves. A single new plant for concentrating ores■.of
this type — now in the process of construction -- will, I
am told, have an annual capacity of one million tons.
- 5 The same thing has happened in the chemical industry —
in metal alloys — and, most strikingly of all, in agri*- •
culture and soil science. In almost every field of output,
we have passed far beyond the boundaries of a production
potential limited by the known resources and techniques of
a generation ago© And it is capital investment — traced
back, in every instance, to someone’s decision that
America’s future was worth backing — which has made
possible the phenomenal achievements of American industry*
This year, business improvements represent an important
forward movement in our national economy* They are sup
ported by our rapidly growing population, our continued high
income levels, our strong credit and financial situation,
and the great technical progress which the capital investment
of recent years has provided.
The rapid rate of population growth has been an extremely
important factor in the progress in our own country. It has
provided an expanding market here — the greatest market in
the world — for the increasing output of American agri
culture and American industry. Today, as in the past, the
growing American market is a dynamic force making for
business expansion.
The current rate of population growth means that during
1950 alone the American market will be enlarged by 2-1/2
million people. Also, there has been a very rapid increase
during the past decade in the number of families. Forty
percent of all our families are new families — the result
of the 17-1/2 million marriages since 1940. This means, of
course, that the need for separate homes and for separate
facilities of all kinds is increasing even more rapidly than
the population figures would indicate.
The buying power of our people, moreover, has continued
at a very high level. Aided by the special insurance
dividend to veterans, personal incomes this year are the^
highest on record. Even without this dividend, current in
comes are above the corresponding period last year.
Retail sales throughout the postwar period have reflected
a basic confidence in the economic outlook. During the
readjustment period of 1949, consumer buying held like a
stone wall against the setback in production. Early in 1949,
-
6
-
■you will recall, the return of buyers 1 markets had^caused
many businessmen to liquidate inventories# Declining^or ers
for stock soon had their effect on output. But with incomes
continuing high — and a record backlog of savings — most
families saw no need to cut down on their purchases. While
they bought less of some things, they bought more of others.
unit
For 1949 as a whole, total retail sales in actual unit
sales
of
the pre
volume proved to be higher than the record
led
to
t
h
ere
vious year. And continued high sales soon
stocking of merchandise and to an increase in production.
The rise in production is still under way.^ Retail sales,
in the meantime, have also expanded. So far this year they
have been running some 6 percent greater in physical volume
than a year ago. Industrial production is now close to the
record peacetime level reached in the fall of 1948, while
employment in May was at a new high record for that month.
The business advance so far has given very little in
dication of underlying weakness. The prevailing s pint^oi
confidence has shown no signs of developing into excessive
optimism. Business planning generally has remained cautious,
and inventories have been kept conservative. There has been
no important volume of speculation in the stock or commodity
markets. Bank loans, on the whole, have shown no unduly
large increase, and our credit and financial situation in
general remains reassuring.
The problems which face our Nation today make it
imperative that we'maintain this strength.
It is the tasK
of those in the Government and of every individual American
to see that our economic structure is stronger than ever
before. We must continue to demonstrate the effectiveness
of our system of free enterprise in opening up the resources
of our country, and spreading their benefits^across the
Nation. We must continue to prove that our form ot
Government offers the individual greater opportunities
an
any other system of Government in the world today.
As members of the American Institute of Banking, you
have a particular responsibility for approaching the day-today oroblems of banking operation in the light oi their
¿0%
- 7 relation to the broader issues of our national well-being.
For our economy to remain strong, it will be of vital
importance to assure the continued soundness of our credit
structure and to protect the economy from the dangers ot
excessive speculation. But in observing these primary
rules of economic health, it is important never to losesight of the fact that our economy, to continue_healthy,
must continue growing. Our success in maintaining our
growth and at the same time keeping the foundations o± our
strength unimpaired will depend on many thousands o±
individual decisions in the^banks, in the business offices y
and in the homes of the Nation*
These decisions will shape our future*
0O 0
■
h
i '
The problems and responsibiI »ties
Americans will face in the future
wi I I not be easy,
continue to work
so long as we
-- unitea
in d e a ication to the established
principles of our American system
of this
may face the
future with fu 11 conf iaence.
- 33 would want to curtail them when a II
the facts were laid before you.
>
But because we are facing a
deficit today, there is no reason why
we should cease our efforts to wort*
toward a balanced budget -- or even
better, a surplus for debt repayments
just as rapidly as we can.
If we a re
to attain this objective -- as well
as our goals of security on domestic
and foreign fronts -- we must maintain
a strong national economy.
amounts that would reflect in the
deficit, these are the two areas
that wou
sgest
I to stand
r cuts.\ While these extra
part
expenditures are laying a heavy
on our economy at the present
t »me , t
ms of foreign aid
and defense are as vitally lm|
to us right now in this cold war as
they would be in the event we were
having an actual shooting war.
doubt if I-nr
t
I
tszxasg any of you
31
Despite increased worn loads, we have
some 11,000 fewer civilians wor« ing
in the Treasury today than we had
when I came to the Department.
Each
month we have steadily progressed in
improving the efficiency and the
economy of Treasury operations.
The big items that are causing
the deficit at the present time are,
of course, the foreign aid program.
and the defense program.
pngress
to cut the present budget by
a strong belief that in prosperous
times such as these, we should
bend every effort to stay out of
the rep.
i am a firm disciple of economy
in Government operations.
In the
four years since I have been at the
Treasury, we have carried on a
management program directed toward
cutting costs,
improving efficiency,
and rendering better public service-
r\ £%
you know, was set comparatively low.
The national sales goal is only
$650 million, and that is only a
very small part of any month's
structure.
28
their Government the promotion media
and sales force that in monetary
terms would have cost millions of
do I Iars.
There has also been some talk
in recent months as to why we should
have a Savings Bond program *to help
finance a aeflcit*
I should like to
point out, first of all, that the
Savings Bond program has no dIrect
L. i
relationship to/deficit financing.
The goal
in our current drive, as
27
your product before the puolic.
So
if there is a justification for
having the product
there is
certainly a justification for
keeping it before the public.
It
was for that reas
carry on this stimulation drive
•
Vf
uch a promotion campaign
would not
s ib Ie, of
course, without the
support of i
have prov
individuaIs
free of charge to
H
Others have as
you heed a special drive to sell
suv tngs
Mr,
a mw fw
^
As you
If«¡7
I I accepted c
if you don't
A Jsfc’
i £1 Hi É
H a
11
market.
proc
have a
if
it
I
V
fl
■C
Iettihg folks
it, pre
d iS a
market,
soon you may
from the
.na
Our manufacturers, our
retai Iers, our
M«
learned that ma
25
types of savings.
in selling savings bonds,
moreover, we are doing more than
encouraging thrift.
Equally
important, we are promoting good
citizenship.
By ownership of a
Îgat ion of thfs
ion, our individual citizens
an even greater interest in
the affairs of our
ion
in
the maintenance and preservation
of our system of free enterprise.
have not, however, encouraged
at the
the sate of savings
expense of other types of savings.
savings bond promotion
toward
II
?? insr a I ! manner
orov
sav t
end of
lean people ha
9 war
on Iy their
Increas
of sav I
n
A
years since
ur Ing
reeuIar
■
rester cI a
an even
act ica I ly a l l other
objective of promoting thrift
in our
1 thin«
e greatest
v*e have in this c
is th r
someone s savings
1 leiIt
prov
5 capital funds
I empire.
f*
To the indivi
sr
v ing
have meant personal security, a
lÉ
*4
f
111 es
ev i d e n t
demands
consumer
than
si b
we
somewhat
into
the
Iy
baCKg
ha
ÉM,
21
I i« t to ti-me a
minutes to
discuss some of these questions,
for it is in fran« and informative
response to such inquiries that
the true significance of the
Savings Bond program can be establish'
The question probably most
requentiy asKed is why, since they j
f#
ere conceived as a wartime measure,
we continued to actively promote
savings bonds in the postwar years
reason was that in the first
is t 1it we are now about
in our
0
own community.
Si Rt
that you must be
been
^ ^
for continued
19
created National Organizations
Committee for Savings Bonds.
The united wor« of these
organizations, under his leadership,
has been an inspiration to all of
us.
It was my very great Driv i 1ege,
in ?! jo int ceremony held in
S t . Paul
later that year, to
present Mr. Peterson with one of
the first three citations issued
by the Treasury for distinguished
service in our peacetime bond
program.
outstanding leadership and
service to this program by one
of Minnesota’s own native sons
and your Ki wan is Internetiona1
Secretary -- the Honorable 0, E.
Peterson.
Mr. Peterson, as you Know,
in early 1948 was elected by the
representatives of our leading
civic, fraternal, womens* and
veterans’ organizations througho
the country to head up our newly
IT
-
financial strength of our
communities and country.
5 ICUD US
Kiwsnis has been a
the many fine
sanitations of this country ;d »
actively oart ic ipated in
si/ l I jh r 'thsss be
finance the recent war
have continued equally vigorous
support of
postwar years.
Wa
in
!n the Treasury
rrr especially indebted for
personal savings, which represent
potential purchasing power, are
x
higher than ever before.
Liquid
assets of individuals have reached
$200 billion,
in contrast to only
ISB billion when we entered the war
In
1941.
people are, of the part that the
United States Savings Bond program
has nlayed and is oI ay leg in the
bu iId ing up of the economic and
15
confidence is reflected in the
current volume of retail trade
ail sales,
un it
in
volume, so far this
some
Iast
in the comparable
r s o o 11
s year have more
invest than ever
money
.
I incomes
« Ìthout
are
over
s ’
at an
div
I rs
on
expanston #
every reason
to expect that the business
foundation we have built In these
\
oastwar years will be ma inta ineri
s'
so long its ws cent inut "to svo Id.
excess iv§ soeculction or unduo
credit exoansi on.
feeling of confidence in the strong
influence of consumer demand.
13
were again stepping up production
to meet the great volume of
incoming orders.
This year -- 1950 -- bids to
be one of the most orosperous
business years in our history.
Industrial production has not only
surpassed the 1949 level but is
now rising,
in contrast to the
decline at this time last year.
Industry is going ahead confidently
with new plant and equipment
But nothing of the kind
happened.
The large backlog of
personal savings gave people a
feeling of. financial security,
and they continued their normal
purchasing.
Total retail sales
held up, month after month, at
close to the high levels of the
previous year.
By mid-year people
were taking more goods off the
market than the factories were
producing and by fall, the factories
had a most
impressive
demonstrati on
of *hat the savings of the American
people have meant in promoting the
economic stability of the Nation.
During the
e a rly
half of 1349 an
inventory adjustment caused a
sharp drop in factory production,
and
people
in various industries
*ere thrown out of «3 r
k
»
There
was
considerable apprehension that this
a depressing
on reta iI trade.
I
our c iv iI Ian ret
toward
personal
peacet irra
savings.
Last year,
8
critical war years
as well
I
leans
;
#
W
gif
laid
ive years ago,
c
W I
!if resnons
victor i o u s in
§
securi
Its s
i#m
*
ave
towns, as did
our cities
the
torn
building a better America.
You
have a distinguished record of
service in building up civic pride
and better business standards
even greater significance have
insure
two great world wars' to p r o tfc
I?
our freedom and our way of Ilf®.
In the *30*s we went through the
hardships of our Nation’s greatest
depress*! on.
And In just the past
tve years, we hive faced our
greatest ecor10« Ic test of § 11
t iiit •* that of converting our
vast wartime productivity into
prosperous piiacetIme product ion.'
KIwani s can be proud of Its
contributlon in these years toward
asured by any change of
precepts but rather in our
enlarged opoortun ît ies for service
an i?at ion.
co inc ident wi th
s inessnen
frontiersmen shared hardships,
•1
11 r
in t
fin
» joined hands to build
communities and towns,
prov
«
s
and
in o
ions. I opnortun it
w
rf»t}»Of
I»
11
ir
we meet
s lunch
ay over
table with its
y living
it
W 8a y
seem
have come 8 I
the impromptu civic
cooner?t ivr effort of our people
v'.orK ing together for mutual benefit
that has cemented together the
solid foundation stones of our
democracy.
Most of the great civic
organizat1ons we Know today, such
as Kiwanis, are products of 20th
century America.
Vet the tenets
upon which they are founded go to
the very roots of the democracy
our pioneers planted.
Our sturdy
I feel privileged to appear
before the KI wan is Club of
Minneapolis.
It is through the
leadership of organi?ations such
as yours throughout our land that
America has found added strength
V
for progressive building, and at
the same time has forged a truly
unified Nation
iIi ours is
essentially a Nation for
individuals -- individuals of many
fa iths and creeds
it is the
«®»ss ît Ä i Ä i t anrasB
ABBI $mmM:
ii'iW
1» #Sire
l«|Sltfte8 BMME8 B
M xm m taas, m m m m
TREASURY DEPARTMENT
Washington
The following address by Secretary Snyder before a luncheon meeting of the
Nicollet
Minneapolis Kiwanis Club, C H I l f n Hotel, Minneapolis, Minnesota,
js-scheduled for delivery at about 1:00 p. m.. C. S. T.. on Tuesday.
June IS.,1950. and is for release at that time.
TREASURY DEPARTMENT
Washington
The following address by Secretary Snyder
before a luncheon meeting of the Minneapolis
Kiwants Club, Nicollet Hotel, Minneapolis,
Minnesota, is scheduled for delivery at
about 1;QQ p.m,, C .3 7T7, _on_Tuesday, June 13 ,
1950, and is T o r Release" at~~tnaTf time.
I feel privileged to appear before the Kiwanis Club of
Minneapolis. It is through the leadership of organizations
such as yours throughout our land that America has found
added strength for progressive building, and at the same
time has forged a truly unified Nation. While ours is
essentially a Nation for individuals — individuals of many
faiths and creeds -- it is the cooperative effort of our
people working together for mutual benefit that has cemented
together the solid foundation stones of our democracy.
Most of the great civic organizations we know today,
such as Kiwanis, are products of 20th century America. Yet
the tenets upon which they are founded go to the very roots
of the democracy our pioneers planted. Our sturdy frontiers
men shared hardships, aided their neighbors in time of
need, joined hands to build communities and towns, in order
to provide educational opportunities and a brighter future
for themselves and their children.
As we meet here today over this luncheon table with
its appointments of modern day living, It would seem we have
come a long way from the impromptu civic meetings our pioneer
businessmen used to hold around the old-time stove or cracker
barrel of the village store to discuss the latest news,
politics, or problems of their communities. But the spirit
of the pioneer businessman whose personal enterprise and
loyalty to his neighbors and community helped build our
Nation fortunately Is still with us. The distance we have
come from those yesterdays Is not measured by any change of
precepts but rather in our enlarged’ opportunities for service.
Your own organization, which sprang into being coincident
with World War I, has had tremendous opportunities for service
during its lifetime. The events which have transpired in the
q
o0/20
b-£O0O
-
2
-
past 35 years are still fresh in the memories of most of us
here today* We have been called upon to fight two great
world wars to protect our freedom and our way of life* In
the f30*s we went through the hardships of our Nation's
greatest depression. And in just the past five years, we
have faced our greatest economic test of all time — "that
of converting our vast, wartime productivity into prosperous
peacetime production*
Kiwanis can be proud of its contribution in these years
toward building a better America.
You have a distinguished
record of service in building up civic pride and better
business standards* Of even greater significance have been
your educational programs for building American youth, thus
helping to insure the vigorous leadership so vital to the
greater limerica cf tomorrow.
You have always been staunch in your support of
Government — not only in the critical war years but in
peacetime as well* When Americans laid down their guns at
the close of the war five years ago, they did not at the
same time lay down their responsibilities. We had been
victorious in battle but our future security was far from
assured#. Fortunately we did not have to rebuild our cities
and towns, as did many of the war-torn areas of the world*
But we did have to build a strong peacetime economy, for
upon our domestic strength rested our own future peace and
security as well as that cf other free nations.
There are probably few of us who would have thought
five years ago that we would have been able to do the job
we have dene in such a short period. But Americans had
faith in their future, and with sleeves rolled up, went to
work. As a result we have not only accomplished our civilian
readjustment but we are finding even greater prosperity as
the years go by.
To my mind, one of the greatest contributions which
Americans as individuals have made.toward insuring a strong
peacetime economy — a program which groups such as yours
have so earnes tiy fostered — was the building up of personal
savings. Last year, we had a most impressive demonstration
of what the savings of the American people have meant in pro
moting- the economic stability of the Nation. During the
early half of 1949 an inventory adjustment caused a sharp
drop in factory production, and people in various industries
were thrown out of work. There was considerable apprehension
that this adjustment would have a depressing effect on retail
trade*
But nothing of the kind happened. The large backlog of
personal savings gave people a feeling of financial security,
and they continued their normal purchasing. Total retail
sales held up, month after month, at close to the high levels
of the previous year© By mid-year people were taking more
goods off the market than the factories were producing and by
fall, the factories were again stepping up production to meet
the great volume of incoming orders*
This year — 1950 — bids to be one of the most pros
perous business years in our history. Industrial production
has not only surpassed the 1949 level but is now rising, in
contrast to the decline at this time last year. Industry is
going ahead confidently with new plant and equipment ex
pansion* We have every reason to expect that the business
foundation we have built in these postwar years will be main
tained so long.as we continue to avoid excessive speculation
or undue credit expansion.
The failure of last year s business readjustment to
unsettle the economy created a justifiable feeling of con
fidence in the strong influence of consumer demand. This
confidence is reflected in-the current volume of retail
trade. Total retail sales, in actual unit volume, so far
this year are running some 6 percent higher than in the com
parable period last year*
People this year have more money to spend and invest
than ever before« Personal incomes, even without the
veterans1 dividend, are running at an annual rate of over
$212 billion. In addition, personal savings, which repre
sent potential purchasing power, are higher than ever before.
Liquid assets of individuals have reached $200 billion, in
contrast to only $68 billion when we entered the war in 1941.
I am proud, as I knowr you people are-, of the part that
the United States Savings Bond program has played and is
playing in the building up of the economic and financial
strength of our communities and country*
- 4 Kiwanis has been a conspicuous group among the many
fine organizations of this country which actively participated
in selling these bonds to help finance the recent war, and
have continued equally vigorous -support of the program in the
postwar years* In the Treasury, we are especially indebted
for the outstanding leadership and service to this program by
one of Minnesota’s own native sons and your Kiwanis
V *
International Secretary — the Honorable C* E. Peterson.
■-sir T\
>eter
son,> as you know, in early 1948 was elected by
,Mr. Pe
terson
the represen tative s I our leading civic, fraternal, womens’
and veterans ’ orga ni .tions throughout the country to head up
our newly cr eated Na .onal Organizations Committee for Savings
Bonds. The united w ‘k of these organizations, under his
leadership, has be en ,n inspiration to all of us* It was my
very great privilege, in a joint ceremony held in St. Paul
later that year, to present Mr. Peterson with one of the first
three citations issued by the Treasury for distinguished
service in our peacetime bond program.
At this time we are now about mid-way in our 1950
Savings Bond Drive — the Independence Drive® You people
here today are among the leading workers in achieving your
quota in your own community.
I am sure you will have no
trouble in so doing.
I know that you must be questioned at times, as I have
been, as to the reasons for continued promotion of savings
bonds. I should like to take, a few minutes to discuss some
of these questions, for it is in frank and informative r e
sponse to such inquiries that the true significance of the
Savings Bond program can be established.
The question probably most frequently asked is why,
since they ?/ere conceived as a ivartime measure, we continued
to actively promote savings bonds in the postwar years• One
reason was that in the first year after the war, it was
clearly evident that we were having greater demands for many
consumer goods than we could possibly have the goods to fill,
It was a very wise thing, therefore, to urge our people to
put their money in savings until goods became more plentiful.
As we have drawn away from the war, however, that reason has
receded somewhat into the background. But. as our economy
became more stabilized, the objective of promoting thrift in
cur Nation developed. I think one of the greatest inspirations
-
5
-
we have in this country is the knowledge that someone’s
savings provided us with the capital funds to build our
great industrial empire. To the individual, such savings
have meant personal security, a better home, opportunities
for higher education for his children, and better living
standards•
.
Y.
We have not, however, encouraged the sale of savings
bonds at the expense of other types of savings* The entire
savings bond promotion program has been aimed toward en
couraging all manner of "regular saving to provide for the
future." During the years since the end of the war, the
American people have increased not only their holdings of
savings bonds but to an even greater degree practically all
other types of savings.
In selling savings bonds, moreover, we are doing more
than encouraging thrift. Equally important, we are promoting
good citizenship« By ownership of a part of the obligation
of this Nation, our individual citizens have an even greater
interest in the affairs of our Nation and in the maintenance
and preservation of our system of free enterprise.
Others have asked — "But why do you need a special
drive to sell savings bonds?" As you gentlemen know, if you
have a fine product and get it well accepted by the market,
if you d o n ’t keep letting folks know about it, pretty soon
you may find it disappearing from the market. Our manu
facturers, our retailers, our mercnanaisers, our entrepeneurs
learned that many years ago - y o u ’ve got to keep your product before the public. So if there is a justification for
having the product, then there is certainly a justification
for keeping it before the public.
It was for that reason
that we determined to carry on this stimulation drive this
year. Such a promotion campaign would not have been poss
of course, without the wholehearted support of industry and
individuals. They have provided free of charge to their
Government the promotion media and sales force that in
monetary terms would have cost millions of dollars.
There has also been some talk in recent months as to
why we should have a Savings Bond program "to help finance
a deficit". I should like to point out, first of all, that
the Savings Bond program has no direct relationship to
4!
-
6
-
deficit financing. The goal in our current drive, as you
know, was set comparatively low. The national sales goal
is only $650 million, and that is only a very small part
of any m o n t h ’s refunding; or financing of the Government.
The plan of the Savings Bond program is to interest people
in their Government and to continue the level of the total
savings bonds outstanding as part of the whole debt structure.
In reference to the deficit, I would like to state
that I have a strong belief that in prosperous times such
as these, v\re should bend every effort to stay out of the red.
I am. a firm disciple of economy in Government operations.
In the four years since I have been at the Treasury, we have
carried on a' management program directed toward cutting costs,
improving efficiency, and rendering better public service.
Despite increased workloads, we have some 11,000 fewer civil
ians working in the Treasury today than we had when I came .
to the Department. Each month we have steadily progressed in
improving the efficiency and the economy of Treasury operations.
The big items that are causing the deficit at the present
time are, pi course, the foreign aid program and the defense
program, While these extra 'expenditures are laying a heavy
burden on our economy at the present time, the problems of
foreign aid and defense are as vitally important to us right
now in this cold war as they would be in the event we were
having an actual shooting war. I doubt if any of you would
want to curtail teem when all 'the facts were laid before you.
But because we are facing a deficit today, there is no.
reason why we should cease our efforts to work toward a
balanced budget - or even ^better, a surplus for debt repay
ments -- just as rapidly as we can. If we are to attain this
objective -- as well as our goals of security on-domestic and
foreign fronts — we must maintain a strong national economy.
ine problems and responsibilities we Americans will face
in tne future will, not be easy. But so long as we continue
to work together — united in dedication to the established
principles of our American system — we of this Nation may
face the future with full confidence.
1
j
5 -
«3 ^
*7
J i m 5# 19$0
m
he*
Dam following transact!«»* won» sad» in direct and guaranteed
securities of the Goewmiaent for Treasury lsmostaont and other
accounts during the month of Stay# W *
Sales
Purchases
m,07$,7$Q.
i5q »qoo *
(Sgd.) E. 0. Baras3
Statement Ho. Si
Treasury lapartaeat
Division of Ixmstaents
Kiriis«carver:ds 6/ 5/50
T R EA S U R Y
D EP A R T M EN T
Information S e rv ice
Wa s h in g t o n , d . c .
REIEASE MORNING NEWSPAPERS,
Thur sday, June 15 ? 19 5 0 .__
S-236 9
During the month of May 1950,
market transactions in direct and
guaranteed securities of the
Government for Treasury investment
and other accounts resulted in net
sales of $1 ,9 2 5 ,7 5 0 , Secretary Snyder
announced today.
0O0
t
~3 J L T - T STT a.. ,
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 19dl* the amount .of discount at vrhich 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
I
ordinary gain or loss.
Treasury Department Circular No. UlS* as amended* and this notice* prescribe I
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 I
amount of Treasury b ills 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 w ill 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 w ill be advised of the acceptance or rejection thereof.
The Secretary of the Treasury expressly reserves the rigntto accept or reject
any or a ll tenders, in whole or in part, and his action in any such respect shall
be fin a l» Subject to these reservations, non-competitive tenders for $200,000 or
less without stated price from any one bidder wail be accepted in f u ll au the
average price (in three decimals) of accepted competitive bids.
Settlement for
accepted tenders in accordance with the Dads must be made or compj-eu^d at the
Federal Reserve Bank on June 22, 1?$0
in cash or other immediately avail-
able funds or in a like face amount of Treasury b ills maturing June 22^1950-----.
Cash and exchange tenders Trill receive equal treatment.
Cash adjustments will he
made for differences between the par value of maturing b ills accepted in exchange
and the issue price of the new b ills .
The income derived from Treasury b,ills, whether interest or gain from th- sal
or other disposition of the b ills , shall not have any exemption, as such, and loss
from the sale or other disposition of Treasury b ills shall not have any special
treatment, as such, under the Internal Revenue Code, or laws amendatory or supp^
tary thereto.
The b ills 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 Stale,
the possessions of the United States, or by any local taxing authority.
Ox
any
Fox
of
TRBAS0EirT33^5i8ENT--'
_ ^ s h ln g to n
\j _
FOR RELEASE, MORNING NEWSPAPERS,
Friday, June 16, 1950»______________ _
"
ji
?
W
The S e c r e ta r y o f th e Treasury* by t h i s p u b lic n o tic e * , i n v i t e s ten d e rs fo r
$ 1 ,0 0 0 ,0 0 0 ,0 0 0 , or th ere ab o u ts* o f ____ 9 L -d a y T reasu ry b i l l s * f o r cash and
in exchange f o r T reasu ry b i l l s m atu rin g
June 22^1950 ______»
De is s u e d on
a d isc o u n t b a s is under co m p e titiv e and n o n -co m p e titiv e b id d in g a s h e r e in a fte r
p ro v id e d .
w i l l mature
in te r e s t.
The b i l l s o f t h i s s e r ie s w i l l be dated
September 2 1 , 1950
June 22, 195>0__________ and
* when th e fa c e amount w i l l be p ayab le w itnout
They w i l l be is s u e d i n b ea rer form o n ly , and i n denom inations o f
$ 1 ,0 0 0 , $5*000* $10,000* $100*000, $ 500 * 000 * and $ 1 ,0 0 0 ,0 0 0 (m a tu rity v a lu e ) .
Tenders w i l l be r e c e iv e d a t F e d e r a l Reserve Banks and Branches up to the
D aylight Saving
c lo s in g h o u r, two o ’ c lo c k p . m , , E a s te r n
tim e*
Monday, June 19, 195Q—
Tenders w i l l not be r e c e iv e d a t th e T reasury Department* W ashington,
Each
ten d e r must be f o r an even m u ltip le o f $1*000* and i n th e case o f co m p etitive
te n d e rs the p r ic e o ffe r e d must be exp ressed on th e b a s is o f 100* w ith not more
th a n th re e d e c im a ls , e . g , * 99.925«
F r a c tio n s may n o t be u se d .
I t i s urged
t h a t te n d e rs be made on th e p r in te d form s and forw arded in th e s p e c ia l envelopes
w hich w i l l be su p p lie d by F e d e r a l Reserve Banks or Branches on a p p lic a t io n
th e re f o r.
Tenders w i l l be r e c e iv e d w ith o u t d e p o sit from in co rp o ra te d banks and tru s t
companies and from r e s p o n s ib le and re co g n ize d d e a le r s i n in vestm ent s e c u r it ie s .
Tenders from o th e rs must be accompanied by payment o f 2 p ercen t o f th e fa c e
T R E A S U R Y
D EP A R T M EN T
Information S e rv ice
RELEASE MORNING NEWSPAPERS,
Friday, June 16, 1950._____
WASHINGTON, D .C .
S-2370
The Secretary of the Treasury, by this public notice, invites
tenders .for $1,000,000,000, or thereabouts, of 91~day Treasury
tills, for cash and in exchange for Treasury bills maturing
June 22, 1950, 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 22, 1950, and will mature
September 21, 1950*. 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
$1,000,000 (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 19, 1950. 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
Jill "be advised of the acceptance or rejection thereof. The
Secretary of the Treasury expressly reserves the right to accept or
^ject any or all tenders, in whole or in part, and his action in
auy such respect shall be final. Subject to these reservations,
competitive tenders for $2 0 0 ,0 0 0 or less without stated price
i3?om any one bidder will be accepted in full at the average price
2
(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 22, 1950, in cash or
other immediately available funds or in a like face amount of
Treasury bills maturing June 22, 1950. 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
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 Uo. 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 obtaine
from any Federal Reserve Bank or Branch.
oOo
2
American citizens to carry out academic and scientific
enterprises in Finland.
After giving effect to this payment the indebted
ness of the Government of Finland to the United States
amounts to $7 *7 5 7 *1 2 9 *^6 .
Immediate Release
Ou
Ju n e 1 5 , 1950
37/
S e c r e t a r y S n y d e r announced to d a y t h a t th e T r e a s u r y
D ep artm en t had r e c e iv e d a paym ent o f $ 1 5 9 *6 1 9 .7 4 from
th e Governm ent o f F in la n d on a c c o u n t o f t h a t g o v e r n
m e n t’ s in d e b te d n e s s t o th e U n ite d S t a t e s .
The paym ent c o n s i s t s o f i n t e r e s t i n th e amount
o f $ 1 2 4 ,7 9 2 .5 0 un d er th e F u n d in g A greem en t o f May 1 ,
19235
$ 1 3 , 6 9 5 .0 6 on a c c o u n t o f th e s e m i-a n n u a l paym ent
on th e a n n u it y due un d er th e p o stp o n em en t a greem en t o f
May 1 , 1 9 41, and $ 2 1 ,1 3 2 .1 8 on a c c o u n t o f th e se m i
a n n u a l paym ent on th e a n n u it y due un d er th e p o s tp o n e
ment agreem en t o f O c to b e r 1 4 , 1 9 4 3 .
T h ese p a y m e n ts,
S e c r e t a r y S n y d e r s a i d , r e p r e s e n t th e e n t i r e amount
due from th e Governm ent o f F in la n d on Ju n e 1 5 , I9 6 0 ,
under th e a gre e m e n ts m e n tio n e d .
I n a c c o r d a n c e w it h th e A c t o f C o n g r e s s a p p ro v e d
A u g u s t 2 4 , 19 49, th e amount r e c e i v e d w i l l be made
a v a ila b le
t o th e D ep artm en t o f S t a t e f o r th e p u rp o se
o f p r o v id i n g e d u c a t io n a l and t e c h n i c a l i n s t r u c t i o n
and t r a i n i n g i n th e U n it e d S t a t e s f o r c i t i z e n s
of
F in l a n d and A m e rica n books and t e c h n i c a l equipm ent
f o r i n s t i t u t i o n s o f h ig h e r e d u c a t io n i n F i n l a n d , and
f o r th e p u rp o se o f p r o v id i n g o p p o r t u n i t i e s f o r
TR EA SU
Information !
REIEASE
Friday 3
Mrs. Barker
Mr. Bartelt
Mr. Bray
M r . Cahoon
Mr. Dillon
Mrs. Dubinsky
Mr. Eokar-Raez
Mr. Foley
Mr. Graham
Mr Haas
"Miss Kell
-MjrrThbmas Lynch
M r • Martin
Mr. Parsons
Mr. Hivers
Mr. Siler
Miss Simpson
Mrs. Eliz• Smith
Sec
Treasury
¿159,619 .
account
United à
The
of $124/
May 1, 1
annual p
ponement
on accoi
annuity I
October A
Snyder &§
from the!,
under thè
Le
ìount
it-
.8
h
In accordance with the Act of Congress
approved August 24, 1949, the amount received
will be made available to the Department of
State for the purpose of providing educational
and technical instruction and training in the
United States for citizens of Finland and
American books and technical equipment for
institutions of higher education in Finland, and
for the purpose of providing opportunities for
American citizens to carry out academic and
scientific enterprises in Finland.
After giving effect to this payment the
indebtedness of the Government of Finland to
the United States amounts to $7*757,129.46.
Immediate Release
June 15 j 1950
V
7 /
/ f
Secretary Snyder announced today that the Treasury
Department had received a payment of $159*619.74 ^rom
the Government of Finland on account of that govern
ment's indebtedness to the United States.
The payment consists of interest in the amount
of $124,792.50 under the Funding Agreement of May 1,
1 9 2 3 ; $13,695.06 on account of the semi-annual payment
on the annuity due under the postponement agreement of
May 1, 19^1, and $21,132.18 on account of the semi
annual payment on the annuity due under the postpone
ment agreement of October 14,1943.
These payments,
Secretary Snyder said, represent the entire amount
due from the Government of Finland on June 1 5 , 1950,
under the agreements mentioned.
In accordance with the Act of Congress approved
August 24, 1949, the amount received will be made
available to the Department of State for the purpose
of providing educational and technical instruction
and training in the United States for citizens of
Finland anä American books and technical equipment
for institutions of higher education in Finland, and
for the purpose of providing opportunities for
RELEASE MORNING NEWSPAPERS,
Friday, June 16 , 1930.
S-2371
Secretary Snyder announced today that the
Treasury Department had received a payment of
$ 1 5 9 ,6 1 9 .7 4 from the Government of Finland on
account of that government's indebtedness to the
United States.
The payment consists of interest in the amount
of $124,792.50 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 post
ponement 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, 1 9 4 3 . These payments, Secretary
Snyder said, represent the entire amount due
from the Government of Finland on June 1 5 , 1950,
under the agreements mentioned.
In accordance ¥ith the Act of Congress
approved August 24, 1949, the amount received
will be made available to the Department of
State for the purpose of providing educational
and technical instruction and training in the
United States for citizens of Finland and
American books and technical equipment for
institutions of higher education in Finland, and
for the purpose of providing opportunities for
American citizens to carry out academic and
scientific enterprises in Finland.
After giving effect to this payment the
indebtedness of the Government of Finland to
the United States amounts to $7,757,129.46,
0O0
America
nd
ran idly
is
s t i l l
growing
era of scientific
a
young
c )u^t
country,
In
r y .
the
is
■
just getting under way, o oo o r t un it ies
ful Iy as great as any in our oast
history
a
to those w
i
v is ion and courag
I beli eve th:
initiative which our neon Ie
have demonstrated in the past
P 12ay
W
same prominent role in our
nation’s future progress
i
1n
|
I
32
peacetime,
fie have been faced with
the management of a huge national debtpj
and have successfully directed its
management toward economic stability.
.,’:
I
fie have met both inflationary and
I
deflationary price factors.
Yet our
national production and national
I
income have remained high; business
I
downturns have been no more than
I
temporary, and our economy continues
I
to show impressive evidence of
growing strength.
31
economic problems that have affected
our economy, the postwar period as
a whole shows one impressive fact.
That is the strength which our system
of free enterprise and representative
government has consistently
demonstrated through rough weather
and changing tides.
We have met conditions never
before experienced in internationaI
affairs.
We have given aid to other
nations on a scale unprecedented in
29
since the third quarter of last year.
Estimates of the probable volume of
exoenditures
for new plant
and ■
*
‘
equipment in 1950 have been
successively increased.
I have confidence that the job
opoortunities orovided'by this year’s
renewed business advance,, and by the
new industrial capacity that is
becoming available, will again bring
employment into line with the
labor force.
28
The greater business confidence
more recently, however, has given
renewed encouragement to plant
expansion.
Contract awards in April
for new construction of commercial
and manufacturing buildings, for
example, were 66 percent higher than
in the same month last year.
The
trend is confirmed by an upturn in
new order's for heavy equipment.
Orders for machinery and for machine
tools have both been rising sharply
27
economic deveIODment.
On the other
hand, over-expans ion during business
booms could contribute to later
instab iIity.
In the years since the war, a
great program of plant expansion and
new capital
investment in machinery
and equipment has been carried out by
many industries.
Yet we Know that
throughout this Deriod business
policies generally have remained
very cautious.
26
recessions in the past.
One of our roost valuable
assets
1
|
|
is our growing labor force.
We roust
maKe sure that this asset is not
wasted.
The fullest expansion in
business Drofits, as well as in
national
income, requires
that our
\ !/i- 1
industrial capacity and other sources
of employment Keep closely in steo
with our growing population.
Inadequate caoacity could be a
bottleneCK preventing our fullest
had to be sent out to fill depleted
inventories.
Factory production
was stepped up, and a genera I
business recovery got under way.
The recovery has developed into a
sustained advance.
The foundation for an era of
vital economic progress is
strengthened by the unprecedented
financial resources of both
corporations and individuals.
worKing capital of corporations
Net
23
affected by the sudden curtai Iment
''‘N
l
I
in new orders
and
by the resulting
unempIoyment.
The nation as a whole, however,
showed strong resistance to any
business setbacK.
This was
especially noticeable in the
continued high level of retail sales
which soon began to indicate that
people were taking more goods off
the marKet than the factories were
producing.
By fall, rush orders
even Kee
A year ago we had an important
demonstration of the strong
foundation on which our present
economy is based.
Early in 1949,
when the postwar shift to normal
competitive mar«ets caused a
sudden rush to liouidate Inventor ie
factory production was cut
baCK
and employees were thrown out of
worK.
Industries in Connecticut,
unfortunate Iy, were particularly
conclusion that *e are in an ere
sfiiîc progress
a
one evipence of
Is s
Is
various
i
in
Îv Ìt
«
1008 d
spirit
a n
nee has no
CT)
excessive on
ous m e s s Bail rema
is is a l l
it s
preva iI
assurance
in
»
to
ce
1 rood
ous
C .
our economy on an
20
Also, there has been a very
rapid increase during the past
decade in the number of families.
Forty percent of all our families
are new families -- the result of
the I?i million marriages since
1940.
This means, of course, that
the need for separate homes and
for separate faciIities of all
kinds is increasing even more
rapidly than the population figures
would indicate.
In recent years we have been
adding more people to our population
annually than ever before.
Our
birth rate last year was 40 percent
higher than before the war.
There
are 2,500,000 more people in the
country at this time than were here
just a year ago -- a greater yearly
gain than the population of any one
-
18
-
demand will give further support
to employment and incomes.
capital
New
investment will continue
high, as competition demands the
building of new plants and the
replacement of outmoded equipment.
Another major factor contributing
to our rapid economic development
has been our great population
growth -- a dynamic factor in any
nation with industrial skill and
with ample resources of raw materials
- 17 competition.
Even in chemistry, where,|
according to a common saying,
it used
to require "seven years from test tube
to tank car”, the development periods
are being materially shortened.
The possible future applications
of the new scientific developments
are almost endless.
They promise
a steady increase in our living
standards, as new consumer goods,
and better and cheaper goods,|ibecome
available.
'/
The broadening of
;
h
*
t *
trans iati Vi
ty of
ìritei industrial ana consumer goods,
couia have been accomplished in
any country outside
T w w
C t
Our trad it ion of ori
initiative
and free competition, and our
assurance of personal securi
ft*5*.
■I
m
.
created an environment which
to achieve a
enabled this
continuing deve
I also
i n
an ized industria
|
14
New inaustria I techn iques,
too, have aided in cutting
product ion costs, which is
enabIing manufacturers to tap
broader levels of demand,
Progress similarly is being made
in agriculture,
in transportâtion,
materials handling, food
packaging, ana many other fields.
I doubt that anything
approaching our progress in
scientific discovery and invention,
n
13
\,
Currently this trend is
overshadowed by the development
of a broad marKet for one outstanding
new product -- television —
but
si mi Iaf trends are under way in
the many types of plastics,
in
synthetic fibers, new light-weight
|,\
metal products, new K i n d s of
household equipment, new farm
machinery, and improved tyoes of
thousands of articles used in
our everyday life.
12
on the rrmrKet In so short a time,
such
Ith of new synthetic
materials, new and improved
products, and new industrial
techniques.
so rapidly,
¡11
They are appearing
in fact, that many
weeKly trade magazines, and even
some daily financial papers, now
carry regular columns describing
the new products announced since
the orev ious issue.
Yet our technological orogress
in comoarativeIy recent years has
been more rapid than ever before
in our history.
This
the
major
fa v o ra b le
advancement
fa c to rs
business
in
is
the
one
of
present
o u tlo o K .
Recently developed inventions and
discoveries are raoidiy being
translated into new products for
industrial and consumer use.
Never
in our history has there apoeared
progress has recently been shown
in such fields as chemistry and
electronics.
This Dr ogress has
been so rapid as to seem almost
miraculous.
The technological achievements
of our peopl e have been one of the
major causes of the rapid growth
of the United States during the
oast century -- of our growth in
industrial output,
in living
standards, and in national
income.
farm of machinery and mechanical
devices.
Such development
is
still going on, and many important
new discoveries and inventions in
these fields have been made in
recent years.
But during the past decade or
two the trend of the major
discoveries has also turned toward
the use of new scientific principles,
and to new applications of Known
principles.
In consequence, striKing
he worxed out in cooperation with
Simeon North for the manufacture
of firearms.
Upon his system of
interchangeabIe Darts and
specialization of labor has been
built the high-speed assembly line
of modern industry, which has
contributed so much to the industria
might of the United States.
In the earlier years of our
industrial progress, the buI k of the
important new inventions were in the
!!
wmnsm
i ->•
>'•» ,
V •pœfsi#;s'k ifg.
Ml V \ I 4
of
h ig h ly
-
s k i
?
-
led worKmanship.
Through the initiative of her people
Connecticut
tooK
an
e a rly
lead
in
many lines of industry -- in firearms
G
nd ammunition,
in
c
I
o c k
maKing
brass manufacture, and various other
important lines -- which she continues
to hold unchaI Ienged.
Most far-reaching in its effect
on the industrial history of this
Nation was Eli Whitney’s development
of the mass production method,
which
Seth Thomas, and of Connecticut’s
adoDted sons Elias Howe and Eli
Whitney, are Known throughout the
Nation.
In fact,
the people of your
State have been granted more patents
in proportion to your population
than in any other state.
Inventive
ability, combined with native
sk
ill,
has made Connecticut famous
particularly for its fine machinery,
its precision tools and scientific
instruments, and many other products
The span of years covered by
the history of the Bridgeport
Chamber of Commerce saw your city
grow from a population of 19,000 in
1875, when the fabulous P. T. Barnum
was your mayor, to a world famous
industrial center with a metropolitan
area popu Iation exceeding a quarter
of a million
You earned your title as
I of Democracy” for your
immense contribution to the winning
From early days the people of
Bridgeport have been Known for their
progressiveness.
The new Borough
of' Bridgeport was incorporated in
1800, with a population of 200
people.
But shortly thereafter,
began to expand rapidly.
it
A port
was established, new streets were
laid out, bridges were built, and
according to the records, Bridgeport
w
progressed faster than any other
community in the State.
It is interesting, particularly
from my ooint of view, to recall
that the second Secretary of the
Treasury came from western Connecticut
Oliver Wolcott, the man who succeeded
Alexander Hamilton, was born in
Litchfield.
He was a member of an
illustrious Connecticut family, and
a friend of Washington and Hamilton.
.jpf
Serving for many years as Governor
of Connecticut, he was most active
in promoting manufacturing enterprises
in his home state.
The 75th anniversary of the
Bridgeport Chamber of Commerce
deserves special recognition as a
milestone in the long life of your
organization.
For, as a cooperative
group of far-sighted citizens, the
Bridgeoort Chamber of Commerce has
done much during these years to maRe
the products of your city Known
throughout the world.
And in so
doing, you have made a constructive
contribution to our national growth.
The following address by Secretary Snyder before the 75th
Anniversary dinner of the Chamber of Commerce of Bridgeport, Connecticut^
at the Stratfield Hotel, Bridgeport, is for release upon delivery, expected
at about 9:00 p*m. (EDT), Monday, June 19, 1950.
TREASURY DEPARTMENT
Washington
The following address by Secretary Snyder
before the 75th Anniversary dinner of the
Chamber of Commerce of Bridgeport,
Connecticut, at the Stratfield Hotel,
Bridgeport, is for release upon delivery,
expected at about 9:00 p.m. lEDT), Monday,
TunTig;-I95P:--- -- x------ ------1
BUSINESS INDICATORS FOR 1950
The 75tH anniversary of the Bridgeport Chamber of Commerce
deserves special recognition as a milestone in the long life of
your organization* For, as a cooperative group of far-sighted
citizens, the Bridgeport Chamber of Commerce has done much dur
ing these years to make the products of your city known through
out the world* And in so doing, you have made a constructive I
contribution to our national growth.
It is interesting, particularly from my point of view, to
recall that the second Secretary of the Treasury came from
western Connecticut. Oliver Wolcott, the man who succeeded
Alexander Hamilton, was born in Litchfield. He was a member of
an illustrious Connecticut family, and a friend of Washington
and Hamilton. Serving for many years as Governor of Connecticut
he was most active in promoting manufacturing enterprises in his
home state.
From early days the people of Bridgeport have been known
for their progressiveness* The new Borough of Bridgeport was
incorporated in 1800, with a population of 200 people. But
shortly thereafter, it began to expand rapidly. A port was
established, new streets were laid out, bridges Yirere built, and
according to the records, Bridgeport progressed faster than any
other community in the State.
Tile span of years covered by the history of the Bridgeport
i Q A A n ^ f CoMIierce saw Youp city grow from a population of
19,000 in 1875, when the fabulous P. T. Barnum was your mayor,
to a world famous industrial center with a metropolitan' area
population exceeding a quarter of a million.
-
2
-
You earned your title as ’’Arsenal of Democracy” for your
immense contribution to the winning of the First World War; and
in the recent conflict, your city was exceptionally outstanding
in its record of Army-Navy ”E” awards.
The native ingenuity of the ’’Connecticut Yankee”, tradi
tional in American folklore, has brought lasting fame to your
State as the home of inventors. The names of such outstanding
men as Charles Goodyear, John Fitch, Samuel Colt, Nathaniel
Wheeler, Eli Terry and Seth Thomas, and of Connecticut’s
adopted^sons Elias Howe and Eli Whitney, are known throughout
the Nation, In fact, the people of your State have been granted
more patents in proportion to your population than in any other
state. Inventive ability, combined with native skill, has made
Connecticut famous particularly for its fine machinery, its precision tools and scientific instruments, and many other products
of highly skilled workmanship. Through the initiative of her
people, Connecticut took an early lead in many lines of in
dustry — in firearms and ammunition, in clock making, brass
manufacture, and various other important lines -- which she con
tinues to hold unchallenged.
Most far-reaching in -its effect on the industrial history
of this Nation was^Eli Whitney’s development of the mass prometilod> which he worked out in cooperation with Simeon'
North for the manufacture of firearms. Upon his system of
interchangeable parts and specialization of labor has been
built the^high-speed assembly line of modern industry, which
has contributed so much to the industrial might of the
United States,
In th e earlier years of our industrial progress, the bulk
oi the important new inventions were in the form of machinery
and mechanical devices* Such development is still going on,
and many important new discoveries and inventions in these
Helds have been made in recent years.
But during the past decade or two the trend of the major
discoveries has also turned toward the use of new scientific
Principles, and to new applications of known principles. In
consequence, striking progress has recently been shown in such
iieids as chemistry and electronics. This progress has been so
rapid as to seem almost miraculous.
o W
- 3 -
The technological achievements of our people have been one
of the major causes of the rapid growth of the United States
•during^ the past century — of our growth in industrial output,
in living standards, and in national income.
Yet our technological progress in comparatively recent
years has been more rapid than ever before in our history.
This advancement is one of the major factors in the present
favorable business outlook. Recently developed inventions and
discoveries are rapidly being translated into new products for
industrial and consumer use. Never in our history has there
appeared on the market in so short a time, such a wealth of new
synthetic materials, new and improved products, and new indus
trial techniques. They are appearing so rapidly, in fact, that
many weekly trade magazines, and even some daily financial
papers, now carry regular columns describing the new products
announced since the previous issue.
Currently this trend is overshadowed by the development of
a broad market for one outstanding new product -- television —
but similar trends are under way in the many types of plastics,
in synthetic fibers, new light-weight metal products, new kinds
of household equipment, new farm machinery, and improved types
of thousands of articles used in our everyday life.
New industrial techniques, too, have aided in cutting pro
duction costs, which is enabling manufacturers to tap broader
levels of demand. Progress similarly is being made in agri*- •
culture, in transportation, materials handling, food packaging,
and many other fields.
j.-n. ^
that anything approaching our progress in scien
tific discovery and^invention, and the rapidity of its trans
lation into industrial and consumer goods, could have been
accomplished inariy country outside the United States. Our
tradition of private initiative and free competition, and our
assurance of personal security have created an environment
which has enabled this country to achieve a continuing de
velopment. This environment has also encouraged the programs
of organized industrial research which have been responsible
tor many of our greatest scientific discoveries.
Our technical advancement is being progressively speeded
^
take time for new discoveries to have their full
affect on our national economy, just as television is re
quiring some time to reach its full development. But the
- 4 -
process is under way, and it is being accelerated through active
competition. Even in chemistry, where, accordihg to a common
saying, it used to require "seven years; from test tube to tahk
car", the development periods are being materially shortened.
The possible future applications of the new scientific
developments are almost endless. They promise a steady in
crease in our living standards, .as new consumer goods, and
better and cheaper goods, become available. The broadening of
demand will give further- support to employment and incomes.
New capital investment will continue high, as competition de
mands the building of new plants and the replacement of out
moded equipment,.
Another major factor contributing to our rapid economic
development has been our great population growth — a dynamic
factor in any nation with industrial skill and with ample re
sources of raw materials and capital.
In recent years we have been adding more people to our
population annually than ever before. Our birth rate last
year was 40 percent higher than before the war. There are
2,500,000 more people in the country at this time than were
here just a year ago -- a greater yearly gain than the popula
tion of any one of 26 states.
Also, there has been a very rapid increase during the
past decade in the number of families. Forty percent of all
our families are new families — the result of the 17-1/2
million marriages since 1940. This means, of course, that the
need for separate homes and for separate facilities of all
kinds is increasing even more rapidly than the population
figures would indicate.
These facts add up to the conclusion that we are in an
era of dynamic progress.
There is strong evidence of this in our various indices
of economic activity. And, as an added assurance, the pre
vailing spirit of confidence has not grown into excessive
optimism. Business has remained cautious. This is all to
the good. It has helped to keep our economy on an even keel*
2Ç3
- 5 -
A year ago we had an important demonstration of the strong
foundation on which our present economy is based. Early in
1949, when the postwar shift to normal competitive markets
caused a sudden rush to liquidate inventories, factory pro
duction was cut back and employees were thrown out of work.
Industries in Connecticut, unfortunately, were particularly
affected by the sudden curtailment in new orders and by the
resulting unemployment.
The nation as a whole, however, showed strong resistance
to any business setback. This was especially noticeable in
the continued high level of retail sales, which soon began to
indicate that people were taking more goods off the market
than the factories were producing. By fall, rush orders had
to be sent out to fill depleted inventories. Factory produc
tion was stepped up, and a general business recovery got under
way. The recovery has developed into a sustained advance.
The foundation for an era of vital economic progress is
strengthened by the unprecedented financial resources of both
corporations and individuals. Net working capital of corpo
rations stands at the highest figure on record. Liquid assets
of individuals, which a year ago had reached the huge total of
$200 billion, are now at an even higher level.
We must insure that our progress will continue on a strong
and healthy basis. To this end, it is of primary importance
that we avoid excesses of speculation or of credit expansion -the principal causes of business recessions in the past.
One of our most valuable assets is our growing labor
force. Vie must make sure that this asset is not wasted. The
fullest expansion in business profits, as well as in national
income, requires that our industrial capacity and other sources
of employment keep closely in step with our growing population.
Inadequate capacity could be a bottleneck preventing our
fullest economic development. On the other hand, over-expansion
during business booms could contribute to later instability.
In the years since the war, a great program of plant ex
pansion and new capital investment in machinery and equipment
has been carried out by many industries. Yet we know that
throughout this period business policies generally have re
mained very cautious•
- 6 *
The greater business confidence more recently, however,
has given renewed encouragement to plant expansion. Contract
awards in April for new construction of commercial and manu
facturing buildings, for example, were 66 percent higher than
in the same month last year. The trend is confirmed by an
upturn in new orders for heavy equipment. Orders for machinery
and for machine tools have both been rising sharply since the
third quarter of last year. Estimates of the probable volume
of expenditures for new plant and equipment in 1950 have been
successively increased.
I have confidence that the job opportunities provided by
this year!s renewed business advance, and by the new indus
trial capacity that is becoming available, will again bring
employment into line with the labor force.
It is encouraging to note that total employment in both
April and May reached new all-time records for those months,
and that unemployment has been substantially reduced. I note
that Bridgeport shared in the employment gains, and that your
unemployment in May was 30 percent lower than a year ago.
Despite the fluctuations in employment, and the many other
economic problems that have affected our economy, the postwar
period as a whole shows one impressive fact. That is the
strength which our system of free enterprise and representative
government has consistently demonstrated through rough weather
and changing tides.
We have met conditions never before experienced in inter
national affairs. We have given aid to other nations on a
scale unprecedented in peacetime. We have been faced with the
management of a huge national debt, and have successfully
directed its management toward economic stability. We have
met both inflationary and deflationary price factors, Yet our
national production and national income have remained high;
business downturns have been no more than temporary, and our
economy continues to show impressive evidence of growing
strength.
America, is still a young country, and a rapidly growing
country. In the era of scientific achievement that is iust
getting under way, opportunities fully as great as any in our
past history will be open to those with vision and courage.
I believe that the initiative which our people have demon
strated in the past will play the same prominent role in our
nation!s future progress.
oOo
RXLIA3S, JÄJUfllSÖ
Tuesday, June
20
r 1950.
Ili# seoretary of the Treasury announeed last erening that the tandera for
#1*000,000,000, or tfcereabouts, of 91-day Treasury billa to be datad Tuna SS and to
natura September Si, 1950, wbieb aera offarad oa /una 16, wäre apenad at the Federal Raserre Banks on Juna 19«
Iba detalle of ibis issua ara as folios»*
Total applied for - #1,824,473,000
Total aecepted
- 1,002,887,000
Arerage prloa
{include* #88,749,000 esterad oa a
aon-eesipetitlre basi» and aeeepted in
full at thè araraga prisa shown balo«)
- 99*703/ Squiralent rata of disaoust appio*. 1.174$ per annua
Bange of aeeepted eorapetitira bidés
High
Low
* 99*709 Squiralsnt rata of disaoust approx. 1*151$ par annua
- 99.708
•
» .
«
«
1.179* »
"
(,0 persasi of tfc. amouat M d for at tho low prloo was aeeepted)
Fadaral Reserve
Dlstrict
Boston
Ha« York
Philadelphia
Cleveland
Richmond
Atiesta
Chioago
St« Louis
Mlaaaapolia
Saasas City
Dallas
San Franslaao
Total
Aeeepted
i
#
#1,884.473,000
#1,002,827,000
U , 188,000
1,322,343,000
30,298,000
23,273,000
18,703,000
7,391,000
173,242,000
20,922,000
3,560,000
21,795,000
31,352,000
157.468*000
TOTAL
9h
Total
Applied for
13,562,000
667,409,000
17,598,000
22,855,000
17,603,000
7,291,000
75,063,000
10,518,000
3,540,000
21,535,000
19,851,000
186.608.000
RELEASE MORNING NEWSPAPERS,
Tuesday, June'20, 1950.
S-2373
The Secretary of* the Treasury announced last evening? that the
tenders for $1,000,000,000, or thereabouts, of 9 1 ~day Treasury bills
to be dated June 22 and to mature September 2 1 , 1950, which were
offered on June 16, were opened at the Federal Reserve Banks on *
June 1 9 .
The details of this issue are as follows:
Total applied for - $1,824,473,000
Total accepted
- 1,002,827,000 (includes $88,749,000 entered
on a non-competitive basis
and accepted in full at the
«
.
.
average price shown below)
Average price
- 9 9 -7 0 3 / Equivalent rate of discount approx.
1.174$ per annum
Range of accepted competitive bids:
High
99.709 Equivalent rate
1 .151 $
9 9 .7 0 2 Equivalent rate
1 .179 $
Low
of discount approx.
per annum
of discount approx.
per annum
(90 percent of the amount bid for at the low price was accepted)
Federal R e s e r v e
District
Boston
New Y o r k
Philadelphia
Cleveland.
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas C i t y
Total
Applied for
$
1^, 122,000
1,322,345,000
3 0 .2 9 8 .0 0 0
2 3 .2 7 5 .0 0 0
18 .7 0 3 .0 0 0
7 ,39 Ì , 000
1 7 3 .2 4 2 .0 0 0
2 0 .9 2 2 .0 0 0
3 ,56 0 ,0 0 0
2 1 .7 9 5 .0 0 0
3 1 .3 5 2 .0 0 0
Dallas
San F r a n c i s c o
157.468.000
TOTAL
$1,824,473,000
0O0
Total
Accepted
$
13,562,000
667,409,000
17.598.000
22.855.000
17.603.000
7 ,291,000
75.063.000
.
10 512.000
3,540,000
21.535.000
19.251.000
1 2 6 .6 0 8 .000 .
$1 ,002,827,000
T R E A S U R Y
D EP A R T M EN T
Information Service
WASHINGTON, D .C .
RELEASE, HORNING NEWSPAPERS,
Wednesday,
June 21, 1950.
S-2374
Federal°Reserve°Banks
f W 1-1/1;
W / l Snyder
announoed
offering,
through
the
ieaeraReserve Banks, W of
percent Treasury
Notes th®
of Series
E-19S'l
onon
d
“ b?etoessTSerLi:,W i W o 0r-PaH t0 h°lderS
T^ u r y Certificates
ta
1 19^0
r ! i " P w lnH
am0??t of 55,601,025,000, which will mature
^
* Cash subscriptions will not he received.
on
from t h L ndate at t h f rr+d ^
b® dated July 1 * 195°' and Tli11 bear interest
^ at date.atnthe rate of one and one-quarter percent per annum, oavable
ÎSt principal at maturity on August 1, 1951. They vdll n“
subject to
call for redemption prior to maturity. They will be issued in bearer form
only, in denominations of '/L.OOD, 05 000 Oin non O o n non
- P®arer f o m
;
toiu,uju, ^100,000 and' $1,000,000.
Î . puf suant to the provisions of the Public Debt Act of 19hl, as amended
interest upon the notes now offered shall not have any exemption as such ’
under the Internal Revenue Code, or laws amendatory or s u S e n t a ^ thereto
and atU+ h » W Pti°nS W 11 be received at the Federal Reserve Banks and Branches
like face a l ^ n t W ?
nt’ Washington, ® d should be accompanied by a
’
* •S .'S ’S S ï
!“r “ • ra“ lpt ° f
*n
Subscriptions addressed to a Federal Reserve Bank or Branch or to
5epaId'IIien:fc> and Placed in the mail before midnight June 2li will be
considered as having been entered before the close of t h f î Æ i f e o ^ o t o .
The text of the official circular follows :
«
UNITED STATES OF ALIERICA
1-l/U PERCENT TREASURY NOTES OF SERIES E-1931
Dated and bearing interest» from July 1, 1930
1930
Department Circular No. 867
Due August» 1, 1931
TREASURY DEPARTMENT,
Office of the Secretary,
Washington, June 21, 1930.
Fiscal Service
Bureau of the Public Debt
I.
OFFERING OF NOTES
1. The Secretary of the Treasury, pursuant to the authority of the
Second Liberty Bond Act, as amended, invites subscriptions, at par, from
the people of the United States for notes of the United States, designated
1—l/U percent Treasury Notes of Series E —1931, in exchange for Treasury
Certificates of Indebtedness of Series F-1930, maturing July 1, 1930.
II.
DESCRIPTION OF NOTES
1. The notes will be dated July 1, 1930, and will bear interest from
that date at the rate of l-l/l; percent per annum, payable with the principal
at maturity on August 1, 1931* They will not be subject to call for redemp
tion prior to maturity,
2. The income derived from the notes shall be subject to all taxes
now or hereafter imposed under the Internal Revenue Code, or laws amendatory
or supplementary thereto. The notes shall be subject to estate, inheritance,
gift or other excise taxes, whether Federal or State, but shall be exempt
from all taxation now or hereafter imposed on the principal or interest
thereof by any State, or any of the possessions of the United States, or by
any local taxing authority.
3. Tne notes Yn.ll be acceptable to secure deposits of public moneys.
They Yri.ll not be acceptable in payment of taxes.
In
Bearer notes Will be issued in denominations of $1,000, $>5,000,
$10,000, $100,000 and $1,000,000. The notes will not be issued in regis
tered form.
3. The notes YVill be subject t o the general regulations of the Treasury
Department, now or hereafter prescribed, governing United States notes.
III.
SUBSCRIPTION AND ALLOTMENT
1. Subscriptions Yfill 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
oxficial agencies.
4*
-
2
-
2, The Secretary of the Treasury reserves the right to reject any
subscription, in whole or in part, to allot less than the amount of notes
applied for, and to close the books as to any or all subscriptions at any
time without notice; and any action he may take in these respects shall be
final. Subject to these reservations, all subscriptions will be allotted
in full* Allotment notices will be sent out promptly upon allotment.
IV.
PAYMENT
1. Paynent at par for notes allotted hereunder must be made on or
before ^July 1, 1930, or on later allotment, and may be made only in Treasury
Certificates of Indebtedness of Series F-1930, maturing July 1, 1930, which
will be accepted at par, and should accompany the subscription. The full
year's interest on the certiiicates surrendered will be paid to the sub
scriber following acceptance of the certificates.
V.
GENERAL PROVISIONS
As fiscal agents of the United States, Federal Reserve Banks are
authorized and requested to receive subscriptions, to make allotments on the
basis and up to the amounts indicated by the Secretary of the Treasury to
the Federal Reserve Banks of the respective Districts, to issue allotment
notices, to receive payment for notes allotted, to make delivery of notes
on full-paid subscriptions allotted, and they may issue interim receipts
pending delivery of the definitive notes.
2. The Secretary of the Treasury may at any time, or from time to
time, prescribe supplemental or amendatory rules and regulations governing
the offering, which will be communicated promptly to the Federal Reserve
Banks.
JOHN W. SNYDER,
Secretary of the Treasury.
-3 &LB8A
purposes of taxation the amount of discount at which Treasury bills are originallysold by the United States shall be considered to be interest.
Under Sections I|2
and 117 (a) (1) of the Internal Revenue Code, as amended by Section 11$ of the
Revenue Act of 19Ul, the amount of discount at which bills issued hereunder are
sold shall not be considered to accrue until such bills shall be sold, redeemed or
otherwise disposed of, and such bills are excluded from consideration as capital
assets.
Accordingly, the owner of Treasury bills (other than life insurance
companies) issued hereunder need include in his income tax return only the
difference between the price paid for such bills, whether on original issue or
on subsequent purchase, and the amount actually received either upon sale or
redemption at maturity during the taxable year for which the return is made, as
ordinary gain or loss.
Treasury Department Circular No. lj.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
-
±W±
amount of Treasury bills applied for, unless the tenders are accompanied by an
I
..
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 $200,000 or
less without stated price from any one bidder will be accepted in full at the
average price (in three decimals) of accepted competitive bids.
Settlement for
accepted tenders in accordance with the bids must be made or completed at the
Federal Reserve Barit on June 29. 1950
----- l a p c —
/ in cash or other immediately avail-
~—
able funds or in a like face amount of Treasury bills maturing
Cash and exchange tenders will receive equal treatment.
June 29, 1950
Cash adjustments will be
made for differences between the par value of maturing bills accepted in exchange
and the issue price of the new bills.
The income derived from Treasury bills, Whether interest or gain from the sale
or other disposition of the bills, shall not have any exemption, as such, and loss
from the sale or other disposition of Treasury bills shall not have any special
treatment, as such, under the Internal Revenue Code, or laws amendatory or supplemen
tary thereto.
The bills shall be subject to estate$ 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
'MiM
TREASURY DEPARTMENT
-Washington^
FOR RELEASE, MORNING NEWSPAPERS*
Friday. June 2\. 1900.__________
W:
The Secretary of the Treasury, by this public notice, invites tenders for
$ 1,000,000,000 , or thereabouts, of
91
in exchange for Treasury bills maturing
-day Treasury bills, for cash and
June 29
1950
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 29, 1950
September 28, 191?0
—
, and
w
, when the face amount will be payable without
They will be issued in bearer form only, and in denominations of
Tenders will be'received at Federal Reserve Banks and Branches up to the
D aylight Saving
closing hour, two o*clock p,m., Eastern/StasiaEi time, Monday, June 26. 195
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 Panics or Branches on application
therefor.
Tenders Yri.ll be received Yri_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
T R E A S U R Y
D EP A R T M EN T
Information S e rv ice
RELEASE M O R N I N G N E W S P A P E R S ,
Friday. June 23, 1 9 5 0 .
WASHINGTON, D .C .
S -2375
The Secretary of the Treasury, hy 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 maturing1'June 2 9 , 1950 ■
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 29 , 1950, and will mature September 28, ■
1950, when the tace amount will be payable without interest. They
will be issued in bearer form only, and in denominations of $ 1 .0 0 0 .
$5)000 , $ 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, June 26, 1950. 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.
T e n d e r s w i l l be r e c e i v e d w i t h o u t d e p o s i t f r o m i n c o r p o r a t e d b a n k
and trust c o m p a n i e s a n d f r o m r e s p o n s i b l e a n d r e c o g n i z e d d e a l e r s in
investment s e c u r i t i e s .
Tenders from others m u s t be a c co mp an ie d by
payment of 2 p e r c e n t of the f a ce a m o u n t of T r e a s u r y b i l l s ap pl ie d"
for, u n l e s s the t e n d e r s a r e a c c o m p a n i e d b y a n e x p r e s s g u a r a n t y o f
payment b y a n i n c o r p o r a t e d b a n k or t r u s t c o m p a n y .
,,
I m m e d i a t e l y a f t e r the c l o s i n g hour, t e n d e r s w i l l b e o p e n e d at
the F e d e r a l R e s e r v e B a n k s a n d B r a n c h e s , f o l l o w i n g w h i c h p u b l i c
announcement w i l l be m a d e b y the S e c r e t a r y o f the T r e a s u r y of the
amount a n d p r i c e r a n g e of a c c e p t e d bi ds .
Those submitting tenders
w i n be a d v i s e d of the a c c e p t a n c e or r e j e c t i o n t h e r e o f .
The
Secretary of th e T r e a s u r y e x p r e s s l y r e s e r v e s the r i g h t to a c c e p t or •
eject a n y o r al l te nd er s, i n w h o l e or i n part, a n d h i s a c t i o n i n
any such r e s p e c t s h a l l be f i na l.
S u b j e c t to t h e s e r e s e r v a t i o n s ,
* o n - c o m p e t i t i v e t e n d e r s fo r $2 00 ,0 00 or less w i t h o u t s t a t e d p r i c e
,Vom any ohe b i d d e r w i l l be a c c e p t e d i n f u l l at th e a v e r a g e p r i c e
2
(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 9 , 1 9 5 0 , in cash or
other immediately available funds or in a like face amount of
Treasury bills maturing June 29, 1950. 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 bill3 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.
oOo
-
22
-
one nation and one people eventually
becomes the concern of all.
This
is the Key to the philosophy of
internetionaI cooperation and
co IIaborat ion.
That philosophy is
as important in the restoration and
the maintenance of fair and friendly
economic contacts as it is in any
interest and activity.
Through an interchange of
through
21
of exchange difficulties.
Results
from internationaI action will not
come quiCKly.
But we still have
faith that the policy of a cooperativ
attaCK on these problems will meet
with eventual success.
In facing trade problems and
other or obi eras of this postwar
p e r i o d , we need to r e a l i z e Keenly
the inter- dependence of the more
than
2
billions of people of the
\
ffM
world.
Anything gravely affecting
V»
11
J H I
A
- OEO
'
offered
(j ÿ* p c
in new form
3
#
««æms .
number of items of imnodted
mercha nd ise which d is appeared from
AlTi erican
marxets in
&
m
yf0
; r ft a g a i n becoming a v a n a a i e .
g f* g
*
Postier recovery * iII be
given full effect, of course, only
when the peoples of the-. *or
succeed in finding solutions to our
present trade problems, particularly
the removal of arbitrary restrictions
ana discr iminations and the easing
exchange, and in bending every
energy toward increasing output,
has won our admiration.
I am glad to say that not only
in Belgium but in various other
areas of the world there are
evidences of a remarxable recovery.
Production in a great many lines
(
;-VJ
has shown gratifying increases.
Many new products of other countries
are maxing their appearance in our
V.«!
marxets,
j
oId nroducts are
future of the
»MU
r «ouf
6 recent v© ar s
m
W
courage of the oeoole of B
have built emotional
ties
Artier ic p which a r e s
ran ariv Proi.i ■*%
forma
I
fS
fs gr jh p ^ -fT fP
m
record of Belgium since the
Keen ine its financial
wo r k
ss
mm
îeAer restrictions on tracie
of that nation are
ut in new w
C
I(
foreign inar k et for the unique
*%f4 *§ »f- r*
Vdt laÀ
¡L#
Jt
j-
Ii.r cou
Va
n starti
ç*
C?
new venture
i rs
* €f
s
will to draw on in
s
m.
its
o
e, the
was
assi stance
f material
us
it also orov
for
very reiser* that our
free enterprise system here in
America is built on such a broad
base, Americans have learned to
#©lcom® the products of distant
marKets which meet aineed that
cannot fee satisfied by the things
.profitably produced in their o»n
communities.
Anjexpanding!American
Id emend for the hand-made sftef
ether -products of Belgium* s©
ii|I represented in the St. Louis
•
spec¡ali zatI on in
hi t
understand ing has character Ìzed our
traders.
dooìest Ic
of the United States is
e.xcfi
It on the
produced
lÄti
most advantageous Iy in one area for
» 11 I *
Sp6C
*
Q r 6 ¿i S *
. W
it f op u0 lift t t?ct thiit 'öii'0 1y s tr*
from Florida, automobiles
or shoes from St. Louis will
-
12
in traveling around our country, I
nave talked with businessmen, with
farmers, with educators, with civic
and community groups, and with people
in every walk of life.
Therefore,
I speak with some assurance in
stating that more Americans than ever
before recognize that each individual
citizen has a airect personal stake in
a healthy and growing international
trace.
At times it may seem to our
friends across the seas that America's
to
possible for us to send the products
of our factories, as well, all over
the world.
Windmills from Illinois,
sewing machines from Mew Jersey,
cash registers from Ohio, and,
in
more recent years, tractors and
trucks ana automobiles from Detroit
became increasing
*
& ♦
examples of the American ability
to put mechanized power and
scientific discoveries to good use
in tne business of daily living.
It has been American doctrine,
too, since our country's earliest
days, to foster an expanding
exchange of products between nations
Much of the capital and a
considerable part of the machinery
which built our earliest railroads
and industrial plants came from
Europe in exchange for the products
of America's farms and plantations.
Later on, the particular American
genius for mass production made it
fronts to solve the trade problems
wnich are aftermaths of that
dIsorganizatI on.
The problems are
not simple ones and it is unlikely
that acceptable solutions for all
of them will be found quickly.
Nevertheless,
through individual
and collective effort, we are making
progress.
The trade exhibitions
which Belgium is placing in
operation in St. Louis and elsewhere,
are ino icat ive of that progress.
tr^ue.
Perhaps this was
tneref
e today in the
rifeyi iaing
wh ich
commerce
m
4
It is interesting to note that
in i560 -- almost 200 years before
St. Louis was founded as a trading
B| -
depot -- Antwerp already had a
foreign trade so flourishing as to
excite the envy of the older
mercnant communities of Europe.
that year,
In
1000 foreign merchants
were said to be permanent residents
of the city, and the Ambassador to
Antwerp from the Venetian Republic
wrote home that as many as 500 ships
nations goes back
t ime
of the birth of our own Nation.
very names of Belgian cities
ey
to
did so much to
communitles
nations in
contact with
wh ich
id the foundations for our
highly specialized and industri
c iv iIi zat Ìon
mm
O
Fmm
m
mm
nations is essential to the
establishment of peace, and is the
surest guarantee that peace will be
maintained.
With peace, comes the
promise of prosperity.
The splendid exhibition which
is opening here today is a tribute
to this belief in the importance of
an expanding trade to the peace of
the world.
The contribution of the Belgian
people to a successful trade between
assador.
Mr. ConsuI-Genera I, Mr. Mayor,
Ladles and Gentlemen;
i
All of us here today, attending
this luncheon to signal the opening
of the Belgian Trade Exhibition,
as we 11 as all of the people of our
two countries, are united in strivin
toward one goal -- a peaceful world.
From the earliest history of our
two peoples, we have recognized that
a strong and healthy trade between
TREASURY DEPARTMENT
Washington
The following address by Secretary Snyder
before a luncheon meeting of the St. Louis
Chamber of Commerce, Jefferson Hotel,
St. Louis, Missouri, marking the opening
of the Belgian Trade Exhibition, is
scheduled for delivery at 1 p. m., EDT,
Eridày7~Jûnê~^3~1950, and is for release
at that time.
3*
TREASURY DEPARTMENT
Washington
The following address by Secretary. Snyder
before a luncheon meeting of the St* Louis
Chamber of Commerce, Jefferson Hotel,
St* Louis, Missouri, marking the opening of
the Belgian Trade Exhibition, is scheduled
for delivery at 1 pim*, CDT, Friday, June 23,
I95Q, and is for release at tnat time*
'BELGIUM LOOKS AHEAD
All of us here today, attending this luncheon to signal
the opening of the Belgian Trade Exhibition, as well as all of
the people of our two countries, ape united in striving toward
one goal
a peaceful world* From the earliest history of our
two peoples, we have recognized that a strong and healthy trade
between nations is essential to the establishment of peace, and
is the surest guarantee that peace will be maintained* With
peace, comes the promise of prosperity*
The splendid exhibition which is opening here today is a
tribute to this belief in the importance of an expanding trade
to the peace of the world*
The contribution of the Belgian people to a successful
trade between nations goes back far beyond the time of the birth
of @ur own Nation* The very names of Belgian cities of today —
Antwerp, Bruges, Ghent — call to mind the great trading organ
izations of the middle ages and later, which did so much to
bring- isolated communities and nations in contact with each
other, and which laid the foundations for our present highly
.specialized and industrialized western civilization*
It is interesting to note that in 1 5 6 0 — almost 200 years
before St* Louis was founded as a trading depot — Antwerp
already had a foreign trade so flourishing as to excite the
envy of the older merchant communities of Europe* In that year,
1000 foreign merchants were said to be permanent residents of
the city, and the Ambassador to Antwerp from, the Venetian
Republic wrrote home that as many as 500 ships sometimes entered
the harbor of that city in a single day.
S-237-6
33 &
2
The trading histories of Bruges and Ghent — _ centers of
the wool and cloth trades for all of Europe at the time -- go
back even farther* As early as the first years of the 14th
century, the merchants of Bruges were noted in Europe for their
breadth of view, their political insight, and their interest in
joint effort for the purpose of furthering world trade* Perhaps
this was why the rates of exchange for all of the trading^
nations of Europe were set, during that period, in that city*
It is in line with
therefore, that Belgium
today in the rebuilding
completely disorganized
all the traditions of Belgian history,
should have such an important role
of the trade and commerce which was so
by lorId War II*
We are striving on a great many fronts to solve the trade
problems which are aftermaths of that disorganization* The
problems are not simple ones and it is unlikely that acceptable
solutions for all of them will be found quickly* Nevertheless,
through individual and collective effort, we are making progress*
The trade exhibitions which Belgium is placing Tn operation in
St* Louis and elsewhere, are indicative of that progress*
These exhibitions reflect an encouraging spirit of enter
prise* Belgium looks ahead in establishing them, and Americans
look ahead in welcoming them, and in planning to take advantage
of the opportunity to see what the Belgians have to offer us*
The opening of these exhibitions is a commendable step in the
advancement of trade relations which will be of mutual benefit
to our countries*
It has been American doctrine, too, since our country's
earliest days, to foster an expanding exchange of products
between nations*
Much of the capital and a considerable part of the machin
ery which built our earliest railroads and industrial plants
came from Europe in exchange for the products of America’s
farms and plantations* Later on, the particular American genius
for mass production made it possible for us to send the products
of our factories, as well, all over the world* Windmills from
Illinois, sewing machines from New Jersey, cash registers from
Ohio, and, in more recent vears, tractors and trucks and automobiles from Detroit became increasingly familiar examples of
the American ability to put mechanized power and scientific dis
coveries to good use in the business of daily living*
3ïl
- 3 Americans, then, do not need to be sold on the benefits of
world markets. Ourjentire commercial history has demonstrated
to the people of this nation that healthy trade with other areas
is in our ov\rn best interests, as well as in the interests of
other countries with whom we trad V *
Because we have recognized this truth, we have bent every
effort^.since the close of the war to furthering the cause of an
expanding world^ trade» In traveling around our country, I have
talked with businessmen, with farmers, with educators, with
civic and community groups, and with people in every walk of
life. Therefore, I speak with some assurance in stating that
more Americans than ever before recognize that each individual
citizen has a direct personal stake in a- healthy and growing
international trade.
.At times it may seem to our friends across the seas that
A m erica^ wealth of raw materials and productive capacity and
extensive domestic markets make it difficult for us to appreciate fully the currency and trade problems of the older nations
of western Europe. It is doubtlessly true that here in St. Louis
or in most any other American community, there is not much occa
sion uo have intimate knowledge of currency ratios and trade
agreements.
But every American^does understand and recognize the
enefits of specialization in production. That understanding
has characterized our thinking from the days of the Yankee
traders. The whole domestic economy of the United States is
built on the exchange of things grown or produced most advan
tageous ly in one area for products which are the particular
specialty^of other areas. %e take it for granted that early
strawberries#from Florida, automobiles from Detroit, or shoes
irom &t. Louis will be.available to us all everywhere.
TPor the very reason the
.
;t our free ent erprise* system here
in America is built on such a broad base, Americans have learned
to welcome the products of distant markets which meet a need
that cannot be satisfied by the things pro fitably produced in
their own communities. An expanding Ameri can demand for the
hand-made and other^products .of Belgium, s o well represented in
he^St* Louis exhibition, will make a cont ribution to a larger
world trade* Our tourists have long admi red many of the prodnets of European handiwork and industry,
Their interest has
- 4 paved^ the way for the enthusiastic reception which the Belgian
exhibits have already received wherever* they have been shown.
It is a tribute to the energy and enterprise of the Belgian
people and the Belgian G-ovei’nment that the businessmen of that
nation are now striking out in new ways to widen the foreign
market for the unique products of their country.
In starting this^new venture, Belgium has a large store of
good will to draw on in this country. When our Nation was new
and struggling for its existence, the Antwerp Loan of 1791 was
not only of material assistance to us, but it also provided
evidence to all the world that the people of Antwerp had faith
in the future of the young republic. In more recent years, the
bravery and courage of the people of Belgium have built emotional
ties with America which are stronger by f ar than any which could
be forged by formalized agreements. And the record of Belgium
since the war in keeping its financial house in order, in
working toward increasingly fewer restrictions on trade and ex
change, and in benaing every energy toward increasing output,
has won our admiration.
°
^ 9
,
1 am Slad
say that not only in Belgium but in various
other areas of the^world there are evidences of a remarkable
recovery. Production in a great many lines has shewn gratifying
increases. Many new products of other countries are making
heir appearance in our markets, and old products are being
oilered in new forrn^and dress. A number of items of.imported
erchandise which disappeared from American markets in the war
years are again becoming available*
whpn ^ ! tWar
be given full effect, of course, only
epe oplesof the world succeed in finding solutions to our
present trade problems, particularly the removal of arbitrary
restrictions and discriminations and the easing of exchange
n n h h 0Ultlc S; ResN L s i rom international action will not come
hvp
?ut w ® st;Ll1
faith that the policy of a coopera
tive attack on these problems will meet with eventual success.
J n
problems and other problems of this postwar
i
f h i n t T ? ! - 0 realize' keenly the inter-dependence of the
Pff,.iRan 2 bllla?ns °f people of the world. Anything gravely
S
ifn?n°ne t £-1 0 - a» T
Pf°PL e e^ n t u a l l y becomes the conf -11. This is the key to the philosophy of international
cooperation and collaboration^ .That philosophy is as important
333
in the^ restoration and the maintenance of fain and friendly
economic contacts as it is in any of the tether wide fields of
human interest and activity.
Through an interchange of knowledge, through mutual understanaing, and through closer relationship among the people of
all countries, we shall greatly accelerate our endeavors toward
happily together.™6
8U
U V e P eacefu11^
Prosperously, and
The purposes of_the interchange of knowledge, better mutual
TradeSExhibitionnd Cl°Ser relationsiliP are all served by Belgium's
Ambass?-dor, we wish you, your Government, and your
people success in this program*
0O 0
Comparison of principal items of assets and liabilities of national banks — continued
_____________________________ (In thousands of dollars)
1
Apr. 24,
1950
Dec. 31,
1949
* Apr. 1 1 ,
:
19*9
*
Increase or decrease¡Increase or decrease
;
since Dec» 31« 1949 ¡since April 11» 1349
!
¡Percent: Amount
¡Percent
e Amount
LIABILITIES
Deposits of individuals, partnerships,
and corporations:
$46,151,980 $*7.352,731 $44,318,284 -$1,200,751
1 9 ,149,165
18.95*.970 18,907,230
194,195
1,812,611
2,027,072
1.939,861
-87,811
Deposits of U. S. Oovemment..........
612
3,3*6
3,621
Postal savings deposits,.*.......... .
*,833
Deposits of States and political
-65,560
5,894.587
5,423,285
5,357.785
6,887,424
7,196,001
8,279,678
-1,083,677
Other deposits (certified and cashiers1
checks, etc,)............... .
r 6 8 6 !T T 8 8 * # • # - * * • * • # « . # # # e • • e e e • e a i
-1.21
-I3.O9
63.138
308,577
193.877
2,7b9,3bO
it.l*t
1*28
7.O2
26.51
I.I9
4.48
1.081.308
80,880,273
1.302.961
83.34^318
887.1*31
78,110,913
-221.653
-2,4b¡tjo45
-17.01
-2)96
76,171
1.062.857
7,562
958.958
68,609
109.899
907.29
11.53
82.019.301
84.304.838
89,553
787.200
78.987.666
-2.285,537
-2.71
3.031.635
3.8*
l6,6l%
1.926.434
1.943.108
2,680,807
1,121,893
310.749
16,568
1.899.772
l.?lb.340
2 639 4*0
1)067,664
' 310.897
.64
l.4o
i,4o
1.57
5.08
-.05
-5,*95
*3.577
38.082
202,313
53,138
-14.370
-24.79
2.31
2.00
8.16
*.97
-4.42
, 4.113.449
. 6.056.557
4.018.001
5)93*)3*1
95.4*8
122)216
2.38
2.06
241.081
2 79 .16 3
- 6.83
*♦83
, 88.075.858
90.239.179
84.765.060'1 -2,163.321
-2.40
Bills payable, rediscounts, and other
liabilities for borrowed money......
Other liabilities......................,
Total liabilities, excluding
capital accounts................,
CAPITAL ACCOtJHTS
Capital stock:
Preferred.....
.
Common........
Total.......
,
Surplus..........
Undivided profits
,
• •••••••
Reserves.........
Total surplus, profits, and
Tot&l C&pit&l &CCOUZL‘t8 ••••••••«••
Total liabilities and capital
accounts.......................
Ratios:
U.S.Cov't securities to total assets
Loans and discounts to total assets
Capital accounts to total deposits
-2.5* $1.833.696
1.02
8*1.935
-4.30
127,250
887
16.90
Percent
42.70
2 7.4 0
7.49
Percent
42.4l
2 6.52
7.12
22,169
1.882.857
1.905.02b
2)478)494
1,068,755
325.119
3.872.368
5.777.39*
106
26.662
8C?68_
41.367
54,229
-148
21.85
3.55
-13,388 -1*.9 *
875.657... 35.08
3.310.798 __ 2i2i
-Percent
40.80
27.06
7.40
HOTS:
Minus sign denotes decrease.
Statement showing comparison of p rin cip al items of assets and l i a b i l i t i e s of activ e national banks
as of A p ril 24, 1950, December 3 1 , 1949, and A p ril 11, 1949
(In thousands of dollars)
s
s
e
e
•
Apr. 24,
1950
4,982
Number of banks,............... .
ASSETS
Loans and discounts, Including
overdrafts.....................i¡¡24.135,464
U. S. Government obligations,
37,6X1,919
direct and guaranteed........
Obligations of States and polit4,188,866
ical subdivisions..... .
Other bonds, notes, and debentures ..... .................... 2 ,053.616
Corporate stocks, including
stocks of Federal Reserve banks
169.639
Total securities........... 44.024.040
Total loans and securities.. 68.159.504
Currency and coin.............. . 1,149,098
Reserve with Federal Reserve
banks ....... .................. 10 ,231,257
Balances with other banks........ 7.496.411
Total cash, balances with
other banks, including reserve
balances and cash items in
18.876.766
process of collection.
1.039.588
Tot)&X 8t8S6t)8 ••••#•••••••#••* 88.075.858
! »eo. 31,
1949
e
4,981
! Apr. 11,
;
1949
4,996
{Increase or decrease: Increase or decrease
:since Dec. 31. 1949 :since April 11. 1949
¡Percent
: Amount
¡Percent: Amount
-.28
-14
.02
1
$23,928,293
$22,941,026
$207,171
.87
$1 ,194,438
5.21
38,270,523
34,582,806
-658,604
-1.72
3,029,113
8.76
3,747,200
3,289,963
441,666
11.79
898,903
27.32
2,023,542
1,901,718
30,074
1.49
151,898
7.99
166.485
44.207.750
68.136.043
l!059!663
161.062
39 .935.549
1.89
-.42
.03
8.44
8.377
4.088.491
5.282.929
33.096
5.33
10.24
8.40
2.97
-2,319,110
306.874
-18.48
4.27
-1.979.140
7.009.
-9-49
.68
3.310.798
3 .9 1
62.876.575
1,116,002
3.154 .
-183.710.
S ! 461
89,435
10,757,111
9.228.184
12 ,550,367
7.189.537
-525,854
-4.89
-18.77
-1.731.773.
21.044,958
1.058.178
20.855.906
1.032.579
84.765.060
-10.J0
-2.l68.192
-18.590 . -1.76
-2.40
-2.163.321
90.239.179
The hanks held obligations of the United States Government of more than
$37»000 ,000 ,000 , which was a decrease of $659 *000,000 since December,
Obligations
of States and political subdivisions held were $l+>000,000,000, an increase of
$1+1+2»000,000, or nearly 12 percent, since December.
Other securities held of more
than $2,000,000,000 were $33,000,000 greater than in December.
Cash of $1,1^+9,000,000, balances with other banks of $7,^+96,000,000 and reserve
with Federal Reserve banks of $10,231*000,000, a total of nearly $19*000,000,000, de
creased more than $2,000,000,000 since December.
Bills payable, rediscounts and other liabilities for borrowed money were
$76,000,000, compared to $7,000,000 in December and $89,000,000 in April of last year.
The unimpaired capital stock of the banks
including $16,67^,000 of preferred stock.
6n April 2l+, 195° was $1,91+3,000,000,
Surplus was $2,681,000,000, undivided
profits $1,122,000,000 and capital reserves $311,000,000.
$ 6 ,0 57 ,000 ,000 , which were
Total capital accounts of
7 .1+9 percent of total deposits, were $122 ,000,000 greater
than in December, when they were 7*12 percent of deposits.
TREASURY DEPARTMENT
Washington, D. 0
0 ^
Press
ho.
5
- ^
/7
The total assets of national hanks on April 2k of this year amounted to more
than $88,000,0 0 0 ,000, Comptroller of the Currency Preston Delano announced today.
The returns from the call covered the U,982 active hanks in the United States and
possessions*
The assets were $2,000,000,000 helow the amount reported hy the active !
hanks as of December JL* 19^9* the date of the previous call, hut were $3,000,000,000
greater than the total reported as of April 11, 19^9, the date of the corresponding
call a year ago.
The deposits of national hanks on April 2k, 1950 were nearly $81,000,000,000,
which is a decrease of $2,500,000,000, or nearly 3 percent, since December, hut
$2,800,000,000 greater than reported for the spring call last year.
The decrease in |
deposits since December is due mostly to net withdrawals in demand deposits of businesi
and individuals of more than $1 ,000,000,000 and a reduction of almost a like amount in
hank deposits.
Included in the current deposit figures are demand deposits of individ
uals, partnerships, and corporations of $U6 ,1 5 2 ,000,00 0, and time deposits of individ
uals, partnerships, and corporations of $19,1^9,000,000.
The latter class of deposits
increased since December hy nearly $200,000,000, or 1 percent.
Deposits of the United
States Government were $1,9^0,000,000, a reduction of $87,000,000; deposits of States
and political subdivisions of $5 ,358 ,000,000 were down $6 5,000,000, and deposits of
hanks totaling $7 *196 ,000,000 were $1,08^,000,000, or 13 percent, less than in
December.
Postal savings deposits were $H,000,000 and certified and cashiers1 checks,
etc. were $1 ,0 8 1 ,000,000.
Loans and discounts on April 2k were $2^,135,000,000, which was an increase of
more than $200,000,000 since December, and an increase of over $1 ,000,000,000 since
April I9U9 .
3 #
TREASURY' DEPARTMENT
Washington, Do Go
K)R RELEASE, MORNING NEWSPAPERS
Wednesday. June 21. 1950_______
S-2377
The total assets of national banks on April 24 of this year amounted to more
than $88,000,000,000, Comptroller of the Currency Preston Delano announced today*
The returns from the call covered the 4,982 active banks in the United States and
possessions* The assets were $2,000,000,000 below the amount reported by the
active banks as of December 31, 1949, the date of the previous call, but were
$3,000,000,000 greater than the total reported as of April 11, 1949, the date of
the corresponding call a year ago*
The deposits of national banks on April 24, 1950 were nearly $81,000,000,000,
which is a decrease of $2,500,000,000, or nearly 3 percent, since December, but
$2,800,000,000 greater than reported for the spring call last yea.r0 The decrease
in deposits since December is due mostly to net vdthdrawals in demand deposits of
busines^ and individuals of more than $1 ,0 0 0 ,000,000 and a reduction of almost a
like amount in bank deposits«, Included in the current deposit figures are demand
deposits of individuals, partnerships, and corporations of $4 6 ,152.,0 0 0 ,0 0 0 , and
time deposits of individuals, partnerships, and corporations of $1 9 ,1 4 9 ,0 0 0 ,0 0 0 *
The latter class of deposits increased since December by nearly $200,000,000, or
1 percent* Deposits of the United States Government were $1,940,000,000, a
reduction of $87,000,000; deposits of States and political subdivisions of
(5 ,358 ,000,000 were down $ 65 ,0 0 0 ,0 0 0 , and deposits of banks totaling $7 ,1 9 6 ,000,000
were $1,084,000,000, or 13 percent, less than in December* Postal savings deposits
were $4 ,000,000 and certified and cashiers' checks, etc* were $1,081,000,0000
Loans and discounts on April 24 were $24,135,000,000, which was an increase of
more than $200,000,000 since December, and an increase of over $1,000,000,000 since
April 1949*
The banks .held obligations of the United States Government of more than
137,000,000,000, vfhich was a decrease of $659,000,000 since December* Obligations
of States and political subdivisions held were $4 ,0 0 0 ,0 0 0 ,0 0 0 , an increase of
$4+2,000,000, or nearly 12 percent, since December* Other securities held of more
than $2,000,000,000 were $33,000,000 greater than in December*
Cash of $1,149,000,000, balances with other banks of $7,49.6,000,900 and reserve
with Federal Reserve banks of $10,231,000,000, a total of nearly $19,000,000,000,
decreased more than $ 2 ,0 0 0 ,000,000 since ’December*
Bills payable, rediscounts and other liabilities for borrowed money were
$76,000,000, compared to $7,000,000 in December and $89,000,000 in April of last
year*
The unimpaired capital stock of the banks on April 2 4 , 1950 wras $1,943,000,000,
including $16^674,000 of preferred stock* Surplus was $2,681,000,000, undivided
profits $1,122,000,000 and capital reserves $311,000,000* Total capital accounts of
$6,057,000,000, Yihich were 7*49 percent of total deposits, were $122,000,000,greater
than in December, when they were 7*12 percent of deposits*
0O0
Hfli
.
2
Statement showing comparison of principal items of assets and liabilities of active national banks
as of April 24, 1950» December 31* 1949» and April 11, 19^9
(In thousands of dollars)
A p r. 24,
‘ 1950
!
;
D ec. 31,
1949
Total assets.
..
s s , 0 7 5 , 25 s
90,239,179
A p r. 11,
1949
In c re a se or d e cre a se : In c re a s e or decrease
-. s in c e D ec. 31» 1949 1s in c e A p r il 11, 1949
1 Amount
:P ercen t
:P e r c e n t: Amount
1
.02
-14
- .2 8
$22,941,026
$ 2 0 7,1 71
.8 7
$ 1 , 194,433
5.21
34,582,806
-6 5 8 ,6 0 4
- 1 .7 2
3 . 029,113
8 .76
3 ,2 8 9 ,9 b 3
441,666
11.79
398,903
2 7 .3 2
1 ,9 0 1 ,7 1 8
30,074
1.49
151,898
7-99
161,062
39 , 935,549
62 , 3 76 ,5 75
1 ,1 16,0 02
3 .1 5 4
-123,710
23^+61
89.435
1.89
- .4 2
.03
8 .4 4
S.5 77
4 ,0 8 8 ,4 9 1
5,2 82,9 29
33.096
5 .3 3
10.24
g .4 o
2-97
12,550,367
7 .1 89,5 37
- 525,854
-1 ,7 3 1 ,7 7 3
- 4 .8 9
- I S . 77
- 2 , 3 1 9 ,1 1 0
306,874
-1 8 .4 8
4 .2 7
20 , 855,906
1,032,579
- 2 , 168,192
- 18,590
- 1 0 .3 0
- I .76
- 1 ,9 7 9 .1 4 0
O
O
h-
Number of banks.......... ........
4 ,9 82
4,9 81
ASSETS
Loans and discounts, including
overdrafts...............
1 3 5 , 46 !+ $ 2 3 , 928,293
TJ. S. Government obligations,
direct and guaranteed.....
. . 3 7 , 611,919 3 S,270,5 23
Obligations of States and polit
4 ,1 8 8 ,8 6 6
3 ,7 4 7 ,2 0 0
ical subdivisions.............. . .
Other bonds, notes, and deben
tures...... ....................
2 , 053,616
2 ,0 2 3 ,5 4 2
Corporate stocks, including
166,485
stocks of Federal Reserve banks.
169,639
Total securities............. . . 44 ,0 2 4 ,0 4 0 44 , 2 0 7,750
Total loans and securities... ..~ 6 8 ,159,504 68,136,043
Currency and coin............... . . .
1,149,098
1 , 059.663
Reserve with Federal Reserve
banks........................... . . 10,231,257 10,757,111
7 , 496,411
Balances with other banks....... . • . .
9 , 22 s , 184
Total cash, balances with
other banks, including reserve
balances and cash items in
process of collection......... . . 18,876,766 2 1 ,0 4 4 ,95S
Other assets...... *.......... ..
..
1 ,0 3 9 ,5 8 8
1 , 0 58,178
<
;
-9 .4 9
.68
84,765,060
- 2 , 16 3,32 1
- 2 ,4 0
3 ,3 1 0 ,7 9 8
3 .9 1
4,996
VA>
-O
Compar i s o n of* princ i p a l items of assets a n d liabilities of n a t i o n a l tanks - c o n t i n u e d
(In thousands of dollars)
------------------------- :------------ j
. Apr. 24,
.
!
1950
:
Dec.^31»
19*49
*
: Apr. 11,
;____ 19*49
3«
____________ ____________ _ — _______
:Increase or decrease‘
.Increase or decrease
:since Dec. 31, 19*49 ‘
.since April 11, 19*49
: Amount
:Percent: Amount
’
.Percent
LIABILITIES
Deposits of individuals, partnerships,
and corporations:
4.l4
- 2.54 $1 ,833,696
Demand........ ..................... ...$*6,151,980 $*+7 ,352,731 $*4*4,318,28*4 -$1,200,751
1.28
241,935
1.02
19*4,195
18,907,230
13,95*4,970
Time....... . •................*..... .. 19,1^9,165
7.02
-4.30
127,250
-37,211
1 ,812,611
2 ,027,072
Deposits of U. S. Government.......... •.. 1 ,939,861
26.51
-Z Cpi
887
16.90
612
3,3*46
Postal savings deposits............... ..
M33
Deposits of States and political
1.19
63,133
-1.21
5,29*4,587
- 65»560
S,H23,285
subdivisions....................... • •5,357*725
_i
7
p
)
Q
4.48
303,577
6,887, *42*4 -1,083,677
-O *UJ
3,279.673
Deposits of hanks..................... .. 7 ,196,001
Other deposits (certified and cashiers’
21.85
-17.01
193,377
-221,653
1 ,302,961
887, *431
.. 1 ,081,30S
2
,
769,360
-2,
*464,0*45
2
.
9
b
3*55
S
3
.
3
^
4
,
31
s
78,110,913
Total deposits........ ........... .. SO,880,273
Bills payable, rediscounts, and other
_i 4.q 4
-13.332
68,609 907.29
7 562
39,553
76,171
liabilities for borrowed money......
275,657
11.53
35 •02
787,200
109,899
952,95s
.. 1,062,857
Total liabilities, excluding
3» 8*4
7 S,q S7,666 -2,285,537
3 ,031,635
-2 .7 I
8*4,30*-!-,838
caoital accounts............... .. 82,019,301
"c a p i t a l a c c o u n t s
Capital stock:
-24.79
.64
106
-5,495
22,169
16 ,56s
16 ,67H
Preferred....................... ....
i.4o
26,662
43,577
1,882,857
..
1
,
926
,^
31
*
1,399,772
Common........................ .
2.00
38,082
1.46
26,7^3"
1 ,905,02^”
l^iSTSio
Total................... ......... .. 1,9*4-3,108
3.16
2,
*478,
*
4
9
*
4
202,313
1-57
..
2,680,807
*41,367
2,639.^0
Surplus........ .......................
u
.97
9
.08
54,229
53.133
1,067,66*4
1,068,755
Undivided profits.......... ........... .. 1,121,893
-4.4?
-iU
,370
-148
-.05
310,7*4-9
310,897
325,H9
Reserves....... .......................
Total surplus, profits, and
241,081
2.38
6.23
95,448
3,872,368
*4,018,001
reserves....................... .. U,ii3,UUg
2.06
~4.S3
122
,
216
“
279,163
5 ,93U, 3*41
5 ,777 ,39^
Total capital accounts............ .. 6,056,557
Total liabilities and capital
3.91
-2.40
3 ,310,792
.. 88,075,858
90,239,179 8*4,765,060 - 2 ,163,321
Percent
Percent
Percent
Ratios:
*40.80
*42.*41
**2.70
U.S.Gov’t securities to total assets
NOTE: Mi nus sign denotes deer ease.
27.06
26.52
27. *40
Loans and die counts to total assets
7 .1+9
7 .*40
7.12
Capital acccrunts to total deposits
RELEASE MCMTOiO lilMPAPIBiS,
SaaaSBg, ¿ssaJSL i9so.
ih« Secretary of the Treasury announced last evening that the tenders for
»1,000,000,000, or thereabouts, of 91*iiay Treasury bills to be dated June
29 ^
to nature September 28, 1950, which were offered on June 23, were opened at the
Federal Reserve Saaks on June 26«
tho details of this issue are as followss
Total implied for - H , 730,736,000
Total accepted
- 1,003,453,000
^ ,
Average Price
(includes #81,047,000 entered on a noncompetitive basis and accepted in full at
the average price shown below)
- 99*704 Equivalent rate of discount approx« 1*172$ per atmua
Range of accepted competitive bids*
- 99.707 Equivalent rate of discount appim* i.l$9$ per annua
•* 99*703
H
»
»
«
tt
1*175$ *
R
r Low
(S8
percent of the amount bid for at the low price was accepted)
Federal Reeerve
District
Total
Boston
Bow York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St* Lcsiis
Minneapolis
Kansas City
Dallas
3an Francisco
Total
Applied for
Total
Accepted
#
§
14,895,000
14,383,000
680.541.000
1,274,355,000
83.711.000
12.795.000
10 .241.000
5.003.000
203,418,000
12 ,691,000
3.235.000
14.659.000
24.500.000
71.233.000
3.096.000
14.206.000
16 .728.000
____42.009.000
61,730,736,000
61,003,453,000
72.511.000
U , 931,000
10 .001.000
4.835.000
123.881.000
9,331,060
T R E A S U R Y
D EP A R T M EN T
Information Service
BEIEASE MORNING NEWSPAPERS,
Tuesday. J u n e 27,
1950.
S-S3T8
The S e c r e t a r y of the T r e a s u r y a n n o u n c e d last e v e n i n g th at the
tenders f o r $ 1 , 0 0 0 , 0 0 0 , 0 0 0 , or t h e r e a b o u t s , of 9 1 - d a y T r e a s u r y b i l l s
to be d a t e d J u ne 2§ a n d to m a t u r e S e p t e m b e r 28, 1950, w h i c h ¥ e r e
offered on J u n e 2 3 , w e r e o p e n e d at the F e d e r a l R e s e r v e B a n k s o n
June 26.
The d e t a i l s of this i s s u e a r e as follows:
T o t a l a p p l i e d fo r - $ 1 , 7 3 0 , 7 3 6 , 0 0 0
Total accepted
1,003,453,000
Average Price
(includes $ 8 1 , 64 7, 00 0 entered
on a n o n - c o m p e t i t i v e b a s i s
a n d a c c e p t e d in f u l l at the
average price shown below)
- 9 9 * 7 0 4 E q u i v a l e n t r a t e of d i s c o u n t a p p r o x .
1 .1 7 2 $ p e r a n n u m
R a n g e of a c c e p t e d c o m p e t i t i v e bids:
- 99.707 Equivalent rate
1,159$
- 9 9 . 7 0 3 Eq ui v a l e n t rate
1.175$
High
Low
(88 p e r c e n t
of d i s c o u n t a p p r o x .
P eP annum
of d i s c o u n t ap p r o x .
per annum
of the a m o u n t b i d fo r at the l o w p r i c e w a s a c c e p t e d )
Federal R e s e r v e
District______ ___
Boston
New Y o r k
Philadelphia
Cleveland
Pichmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Total
Total
A p p l i e d for_______
$
1^,895,000
Total
•______ A c c e p t e d
1,274,355,000
83 ,711,000
12 ,795,000
10.241.000
5 ,0 0 3 , 0 0 0
203,418,000
1 2 .6 9 1 . 0 0 0
3,235,000
14.659.000
24.500.000
_____ 7 1 , 2 3 3 , 0 0 0
14.383.000
680.541.000
7 2 .5 1 1 . 0 0 0
11 ,931,000
10 , 001,000
4,835,000
1 2 3 .8 8 1 . 0 0 0
9.331.000
3 .0 9 6 . 0 0 0
14.206.000
1 6 .7 2 8 . 0 0 0
4 2 .0 0 9 . 0 0 0
$ 1 ,7 3 0 ,7 3 6 , . 0 0 0
$ 1 , 0 0 3 ,4 5 3 , 0 0 0
0O0
-
12
-
in alcohol again has available the sources of sugar and
other materials of which it was deprived during the war.
Indeed, this may be symptomatic of the problem which faces
this Committee in many areas of crime enforcement where the
facilities of quick communication and transportation and
the management genius of the lawless typify the organized
crime to which this Committee is directing its attention.
In closing, let me again pledge to you the wholehearted
cooperation of all elements of the Treasury Department in
this important undertaking.
If you wish, the heads of the
Treasury enforcement agencies will now present their state
ments, commencing with Mr. Bolich*
dependent upon the existence of interstate traffic or the
employment of the facilities of interstate commerce.
Our
principal problems are not of a jurisdictional nature, but
rather relate to the matter of manpower.
In saying that the problems of the Department in the
field of criminal enforcement relate principally to manpower,
I have in mind the more difficult and complex conditions
that face our law enforcement staffs today in contrast to
other times.
In the area of income tax fraud we are dealing
with a base of Federal taxpayers greatly broadened over the
prewar base, and our problem is a mixed one of mass education
and effective exemplary criminal punishment of defrauders.
Compared with war times, greater activity is required for
the same dollar return because the war-swollen profits of
black marketeers and other evaders have diminished and the
return per individual in fraud cases has been reduced.
In
counterfeiting there has been a tendency toward consolidation
of activity in more complex and resourceful hands, with consequej
multiplication of the time and effort necessary for successful
suppression of each case.
The volume of Federal checks in
number and aggregate amount has increased so much during the
war that forgery has multiplied remarkably.
Illicit traffic
The Bureau of Engraving and Printing has laboratory
facilities which are utilized effectively in analyzing
materials and processes employed in counterfeiting currency.
The Examiner of Questioned Documents has a laboratory which
is used to identify handwriting and typewriting and to make
determinations with respect to forgeries and alterations.
The Bureau of Internal Revenue has laboratories located
in several cities which specialize in analyses of alcoholic
products and other commodities which are subject to internal
revenue taxes.
Customs laboratories are equipped to conduct
a wide variety of tests.
The facilities of interstate commerce, such as means of
transportation and communications, are unquestionably used
extensively in violations of the laws enforced by the Treasury
Department.
With respect to smuggling of marihuana and
narcotics and domestic narcotic law violations, it appears
that interstate organizations of racketeers are active and
that they work together effectively.
However, whether criminal
operations are in interstate commerce, or utilize the facili
ties of interstate commerce, for the most part does not
influence Treasury enforcement activities.
In general, the
criminal laws enforced/by the Treasury Department are not
function is the duty to prevent smuggling, including the
smuggling of contraband such as narcotics.
Customs enforce
ment personnel cooperate closely with other Government
agencies, including the Bureau of Narcotics.
The Bureau
has about 200 agents assigned to criminal investigations.
In addition, it has about 800 port patrol officers whose
principal duties are searching and guarding of vessels to
prevent smuggling and the apprehension of persons smuggling
contraband in or out of the country.
These enforcement
personnel deal with clever and vicious criminals who operate
on both sides of the border.
Here too I believe that addi
tional manpower would go far toward coping with the increasing
activity in the smuggling of marihuana, narcotics, and other
contraband.
The Coast Guard has responsibilities for maritime law
enforcement, and it also cooperates with other Treasury
enforcement agencies in enforcing laws within their jurisdiction
%
For example, it assists the Bureau of Customs in the prevention
of smuggling, and it cooperates with the Alcohol Tax Unit in
tracking down illicit liquor operations.
Treasury enforcement agencies are assisted in great
measure by various laboratories maintained by the Department.
- 8 -
and other obligations, suppressing the crimes of counter
feiting and forgery.
Upon the enforcement work of the
Secret Service depends the physical integrity of these
obligations.
Counterfeiting, forgery and other offenses
against our money nave been increasing year after year since
the end of the war.
Post-war foreign black markets in United
States currency have been a contributing’factor in this
increase.
It may surprise you to know that the Secret Service
has less than 200-^nforcement agents in the field, yet this
small force arrested more than 2,900 counterfeiters and
forgers during 11 months of this fiscal year.
According to
the Bureau of Prisons, Federal penitentiaries are rapidly
becoming populated with more counterfeiters and forgers than
any other class of law violator.
For several years the
Secret Service has been under-manned and over-worked, and
with a present backlog .of over 18,000 pending investigations,
an average of approximately one hundred per investigator, it
must be strengthened if it is to meet its mounting responsibili
ties with traditional efficiency«/
The principal function of the Bureau of Customs is the
assessment- and collection of import duties.
Incident to this
- 7 ~
The Bureau of Narcotics enforces the Federal narcotic
and marihuana laws.
It has about 180 agents to combat
illicit dealers and traffickers in opium, heroin, morphine,
cocaine, marihuana, and other narcotic drugs.
This small
organization, whose agents must necessarily operate clandes
tinely in large part, has probably been responsible for sending
to penitentiaries more criminals per officer than any other
Federal enforcement agency in the United States.
Narcotic
agents deal with the most depraved and vicious types of
criminals, many of whom are active in a number of fields of
criminal activity.
The war against the illicit narcotics
traffic, in my opinion, is an important part of the battle
against organized crime, for it strikes directly at under
world leaders and interstate criminal organizations.
Anslinger can go into this with you in detail.
Mr.
I believe
that a strengthened Bureau of Narcotics would prove to be
one of the most potent weapons in the suppression of organized
crime.
The Secret Service, along with its duties in connection
with the protection of the President and of his immediate
family, enforces the law^s relating to our money, securities,
-
6
-
the collection of revenue in a tax prosecution of a
racketeer.
We have been pleased by the remarkable record
that Treasury enforcement has made in bringing to justice
criminals who were successful in avoiding convictions under
other laws.
And of course, as you know, the facilities
of the Bureau may be of invaluable assistance to the wrork
of your Committee in ways not directly connected with tax
prosecutions.
The other category of the Bureau’s criminal law enforce
ment is in the suppression of the non-tax-paid liquor traffi
This field is handled by the Alcohol Tax Unit.
Liquor taxes
are accruing to the United States at the rate of well over
$2 billion per year.
Indicative of the size of the Alcohol
Tax Unit’s job is the fact that, in 1949, it seized 8,649
illicit stills.
The Unit is also charged with the enforce
ment of the National and Federal Firearms Acts.
The purpose
of the National Firearms Act, which requires registration
of certain types of firearms, is to prevent weapons such as
machine guns and sawed-off shotguns from getting into the
hands of the^ criminal element.
The Federal Firearms Act
makes it an offense to transport firearms in interstate
commerce under .certain conditions, thus providing a limited
means for prosecuting criminals not reached under local laws.
- 5 -
bringing about the downfall of some of the most notorious
racketeers, gamblers, and gangsters in the United States.
The list includes a host of criminal figures.
But while
the Bureau is always ready and able to use every means
available to it for punishing the tax evader and for main
taining the integrity of our taxing system, prosecution
under the Federal tax laws is not always a suitable device
for reaching major criminal figures who have escaped prose
cution for flagrant crimes against state or local laws.
Conducting investigations into the financial affairs
of clever underworld figures is usually a difficult, costly,
and prolonged procedure, often fraught with disappointments.
Most modern gangsters and racketeers have learned a tax
lesson from the experiences of their counterparts in the
1930*s.
Many of them receive the advice of professional
tax consultants and are ingenious in the means of reporting
net income.
Even an individual who wantonly disregards
local criminal laws is usually scrupulous in observing Federal
tax laws.
Often the Bureau can accomplish its basic purpose and
at the same time perform a valuable function above and beyond
-
4
-
The primary mission of the Bureau of Internal Revenue
is of course collection of the revenue.
In order to pre
serve the integrity of our tax system the Internal Revenue
Code provides criminal sanctions which apply to persons
who evade, or attempt to evade, taxes for which they are
liable.
The criminal enforcement function of the Bureau
stemming from these specific sanctions should therefore be
viewed as only one of several important instruments used in
the accomplishment of the Bureau1s basic mission.
The criminal aspects of the Bureau*s enforcement
activities fall into two general categories.
Of first
importance are the activities aimed at the uncovering of
internal revenue frauds, a field handled in the investiga
tive stages by the Bureau*s Intelligence Unit.
In 1949, as
a result of the Unit*s work in fraud cases, taxes and
penalties amounting to more than $270 million were assessed
against tax evaders.
record.
This, I think, is a most remarkable
let we in the Treasury Department believe that
many more agents could be employed before we would begin
to reach the point of diminishing returns.
The facilities of the Bureau, particularly its Intel
ligence Unit, have been very successfully employed in
- 3 -
myself to the general aspects of Treasury law enforcement.
First of all, I think it might be helpful for me to
outline the nature and scope of Treasury investigative and
law enforcement activities, commenting upon the specific
functions assigned to Treasury agencies with enforcement
duties.
These agencies are the Bureau of Internal Revenue,
particularly its Intelligence Unit and its Alcohol Tax
Unit, the Bureau of Narcotics, the Secret Service, the
Bureau of Customs, and the Coast Guard.
Treasury enforcement agencies are responsible for
protecting the revenues of the United States, and for
carrying out other specified Federal enforcement duties
of major importance.
Each of the agencies has specialized
functions, of course, but they also work together as a team.
Their activities are carefully coordinated both in Washington
and in the field.
Three of them, the Bureau of Narcotics,
the Bureau of Customs, and the Secret Service, are concerned
with crime on a more or less global as well as national basis,
as their activities are intimately affected by criminal
operations not only in the United States but also in many
parts of the world.
- 2 -
agents.
The Department is not a general law enforcement
agency and it is important that it not be conceived as such,
yet it is a fact that its criminal enforcement measures in
specific fields often serve to aid greatly in the suppression
of general criminal activities.
In offering you the Depart
ment’s full cooperation, I might best assist at the outset
by telling you what we are doing and by indicating what
problems we have in meeting our responsibilities.
With me today are Mr. Bolich, Assistant Commissioner
of Internal Revenue, and Mr. Avis, the Bureau’s Assistant
Deputy Commissioner in charge of Alcohol Tax Enforcement
(Commissioner Schoeneman had expected to appear but a
previous engagement outside the city has detained him
today); Mr. Anslinger, Commissioner of Narcotics, who has
already testified before the Committee;^Mr. Maloney, Chief
I
Coordinator of Treasury Enforcement Agencies; Mr. Baughman,
Chief of the Secret Service; and Mr. Strubinger, Assistant
Commissioner of Customs.
These officers are prepared
to discuss with you the details of Federal law enforce
ment within their specific responsibilities.
For my part,
before leaving the field to them, I should like to address
BRJtf?
6/23/50
'h
r
v
(i
h
ryd-er
I
l
Statement.of^ Secretary^ Sagr
Before the Senate Special Committee to
Investigate Organized Crime in Interstate Commerce/'
Mr. Chairman and Members of the Committee:
\
I am glad to have this opportunity to appear before
your Committee to assure you of the Treasury Departments
desire to assist in every way possible the efforts of your
Committee in carrying out its important function.
The Treasury Department is very hopeful and believes
that the Committees investigation will have far-reaching
and highly constructive results.
To this end, we are
greatly interested in contributing in any way we can to
the study which the Committee is making of one of the
countryS greatest problems.
I assure you that the Treas
ury Department is eager to provide the Committee with every
assistance that may be desired.
Along these lines, as you
know, the Presidents Executive Order of June 17 provides
that tax returns shall be open to inspection and use by the
Committee.
The Treasury Department is charged with suppressing
criminal activities in a number of specific fields, each of
which requires a highly specialized corps of enforcement
S - 0-3 71
t
:'v;:e
- ’* • '
TREASURY DEPARTMENT
Washington
Statement ef Under Secretary of the Treasury
E. H, Foley, Jr., before the Senate
Special Committee to Investigate Organized
Crime in Interstate Commerce,
Wednesday, June 28, 1950
Mr* Chairman and Members of the Committee:
I am glad to have this opportunity to appear before your
Committee to assure you of the Treasury Departments desire to
assist in every way possible the efforts of your Committee in
carrying out its important function*
The Treasury Department is very hopeful and believes that
the Committees investigation will have far-reaching and highly
constructive results. To this end, we are greatly interested
in contributing in any way we can to the study which the
Committee is making of one of the countryS greatest problems,
I assure you that the Treasury Department is eager to provide
the Committee with every assistance that may be desired. Along
these lines, as you know, the Presidents Executive Order of
June 17 provides that tax returns shall be open to inspection
and use by the Committee,
The Treasury Department is charged with suppressing criminal
activities in a number of specific fields, each of which re
quires a highly specialized corps of enforcement agents. The
Department is not a general law enforcement agency and it is im
portant that it not be conceived as such, yet it is a fact that
its criminal enforcement measures in specific fields often serve
to aid greatly in the suppression of general criminal activities.
In offering you the Department’s full cooperation, I might best
assist at the outset by telling you what we are doing and by
indicating what problems we have in meeting our responsibilities.
With me today are Mr, Bolich, Assistant Commissioner of
Internal Revenue, and Mr, Avis, the Bureau’s Assistant Deputy
Commissioner in charge of Alcohol Tax Enforcement (Commissioner
Schoeneman had expected to appear but a previous engagement out
side the city has detained him today); Mr, Anslinger, Commissioner
of Narcotics, who has already testified before the Committee;
S-2379
. 9 -
Mr* Maloney, Chief Coordinator of Treasury Enforcement Agencies;
Mr. Baughman, Chief of the Secret Service; and Mr. Strubinger,
Assistant Commissioner of Customs. These officers are prepared
to discuss with you the details of Federal law:enforcement
within their specific responsibilities. For my part, before
leaving the field to them, I should like to address myself to
the general aspects of Treasury law enforcement.
First of all, I think it might be helpful for me to outline
the nature and scope of Treasury investigative and law enforce
ment activities, commenting upon the specific functions assigned
to Treasury agencies with enforcement duties. These agencies
are the Bureau of Internal Revenue, particularly its Intelligence
Unit and its Alcohol Tax Unit, the Bureau of Narcotics, the
Secret Service, the Bureau of Customs, and the Coast Guard.
Treasury enforcement agencies are responsible for protecting
the revenues of the United States, and for carrying out other
specified Federal enforcement duties of major importance. Each
of the agencies has specialized functions, of course, but they
also work together as a team. Their activities are carer
coordinated both in Washington and in the field. Three of them,
the Bureau of Narcotics, the Bureau of ustoms, and the Secret
more or less global
Service, are concerned-with crime on
well as national basis
their activities are intimately
affected bv
not only
v criminal operations
_L
u in the United States
but also in many parts of the world.
The primary mission of the Bureau of Internal Revenue is of
course collection of the revenue. In order to preserve the
integrity of our tax system the Internal Revenue Code provides
criminal sanctions vhlch apply to persons who evade, or attempt
to evade, taxes for which they are liable. The criminal
enforcement function of the Bureau stemming from these specific
sanctions should therefore be viewed as only one of several
important instruments used in the accomplishment of the Bureau’s
basic mission.
The criminal aspects of the Bureau’s enforcement activities
fall into two general categories. Of first importance are the
activities aimed at the uncovering of internal revenue frauds,
a field handled in the investigative stages by the Bureau’s
Intelligence Unit. In 1949, as a result of the U n i t ’s work in
fraud cases, ta^es and penalties amounting to more than
$270 million were assessed against tax evaders. This, I think,
is a most remarkable record. Yet we in the Treasury Department
believe that many more agents could be employed before we would
begin to reach the point of diminishing returns.
The facilities of the Bureau, particularly its Intelligence
Unit, have been very successfully employed in bringing about
the downfall of some of the most notorious racketeers, gamblers,
and gangsters in the United States. The list includes a host
of criminal figures. But while the Bureau is always ready and
able to use every means available to it for punishing the tax
evader and for maintaining the integrity of our taxing system,
prosecution under the Federal tax laws is not always a suitable
device for reaching major criminal figures who have escaped
prosecution for flagrant crimes against state or local laws.
Conducting investigations into the financial affairs of clever
underworld figures is usually a difficult, costly, and prolonged
procedure, often fraught with disappointments. Most modern
gangsters and racketeers have learned a tax lesson from the ex
periences of their counterparts in the 1930’s. Many of them
receive the advice of professional tax consultants and are
ingenious in the means of reporting net income. Sven an individ
ual who wantonly disregards local criminal laws is usually
scrupulous in observing Federal tax laws.
Often the Bureau can accomplish its basic purpose and at the
same time perform a valuable function above and beyond the
collection of revenue in a tax prosecution of a racketeer. We
have been pleased by the remarkable record that Treasury enforce
ment has^made in bringing to justice criminals who were successful
in avoiding convictions under other laws. And of course, as you
know, the facilities of the Bureau may be of invaluable assistance
to the work of your Committee in ways not directly connected with
tax prosecutions.
. .The other category of the Bureaufs criminal law enforcement
is in the suppression of the non-tax-paid liquor traffic. This
field is handled by the Alcohol Tax Unit. Liauor taxes are ,
accruing to the United States at the rate of well over $2 billion
per year. Indicative of the size of the Alcohol Tax U n i t ?s job
is#the fact that, in 1949, it seized 8,649 illicit stills. The
Unit is also charged with the enforcement of the National and
Federal Firearms Acts. The purpose of the National Firearms Act,
which requires registration of certain types of firearms, is to
prevent weapons such as machine guns and sawed-off shotguns from
getting into the hands of the criminal element, The Federal
Firearms Act makes it an offense to transport firearms in inter
state commerce under certain conditions, thus providing a limited
means for prosecuting criminals not reached under local laws,
The Bureau of Narcotics enforces the Federal narcotic and
marihuana^laws. ^It has about 180 agents to combat illicit dealers
and traffickers in opium, heroin, morphine, cocaine, marihuana,
and other narcotic drugs. This small organization, whose agents
must necessarily operate clandestinely in large part, has probably
been responsible for sending to penitentiaries more criminals
per officer than any other Federal enforcement agency in the
United States, Narcotic agents deal with the most depraved and
vicious types of criminals, many of whom are active in a number
of fields of criminal activity. The war against the illicit
narcotics traffic, in my opinion, is an important part of the
battle against organized crime, for it strikes directly at under
world leaders and interstate criminal organizations. Mr, Anslinger
can go into this with you in detail, I believe that a strengthened
Bureau of Narcotics would prove to be one of the most potent°
weapons in the suppression of organized crime.
The Secret Service, along with its duties in connection with
the protection of the President and of his immediate family,
enforces the laws relating to our money, securities, and other
obligations, suppressing the crimes of counterfeiting and forgery.
Upon the enforcement work of the Secret Service depends the
physical integrity of these obligations. Counterfeiting, forgery
and other offenses against our money have been increasing year
after year since the end of the war. Post-war foreign black
markets in United States currency have been a contributing factor
in this increase. It may surprise you to know that the Secret
Service has less than 200 enforcement agents in the field, yet
this small force arrested more than 2,900 counterfeiters and
forgers during 11 months of this fiscal year. According to the
Bureau of Prisons, Federal penitentiaries are rapidly becoming
populated with more counterfeiters and forgers than any other
class of law violator. For several years the Secret Service has
been under-manned and over-worked, and with a present backlog
of over 18,000 pending investigations, an average of approximately
one hundred per investigator, it must be strengthened if it is
to meet its mounting responsibilities with traditional efficiency.
The principal function of the Bureau of Customs is the
.ssessment and collection of import duties. Incident to this
function is the duty to prevent smuggling, including the
Customs enforcement
smuggling of contraband such as narcotics,
personnel cooperate'closely with other Government agencies,
including the Bureau of Narcotics, The Bureau has about
200 agents assigned to criminal investigations. In addition,
it has about 800 port patrol officers whoso principal duties
are searching and guarding of vessels to prevent smuggling an
the apprehension o: •person: smuggling
o contraband in or out
Sio o
enforcement
personnel deal with clever
the country, Thes
vicious criminals 1 ho operate on both sides of the border,
too I believe that additional manpower would go far toward
coping writh the increasing activity in the smuggling of marihuana,
narcotics, and other contraband.
The Coast Guard has responsibilities for maritime law enforce
ment, and it also cooperates with other Treasury enforcement
agencies in enforcing laws within their jurisdiction. For example,
it assists the Bureau of Customs in the prevention of smuggling,
and it cooperates with the Alcohol Tax Unit in tracking down
illicit liquor operations.
Treasury enforcement agencies are assisted in great measure
by various laboratories maintained by the Department. The Bureau
of Engraving and Printing has laboratory facilities 'which are
utilized effectively in analyzing materials and processes employed
in counterfeiting currency. The-Examiner of Questioned Documents
has a laboratory which is used to identify handwriting and
typewriting and to make determinations with respect to forgeries
and alteration;
The Bureau of Internal Revenue has laboratories
located in several cities which specialize in analyses of alco
holic products and other commodities which are subject to internal
revenue taxes. Customs laboratories are equipped to conduct a
wide variety of tests.
The facilities of interstate commerce, such as means of
transportation and communications, a re'unquestionably used
extensively in violations of the laws enforced by the Treasury
Department. With respect to smuggling of marihuana and
narcotics and domestic narcotic law violations, it appears that
interstati or
* " ■ of
■ .Ira<
.KH m m¡ers
..
,tions
ctive and that they
work^together effectively. However, whether criminal operations
are in interstate commerce, or utilize the facilities of interstate commerce, for the most part does not influence Treasury
enforcement activiti
In general, the criminal laws enforced
6 by the Treasury Department are not dependent upon the
existence of interstate traffic or the employment of the
facilities of interstate commerce.- Our principal problems
are not of a jurisdictional nature, but rather relate to the
matter of manpower.
In saying that the problems of the Department in the field
of criminal enforcement relate principally to manpower, I have
in mind the more difficult and complex conditions that face
our law enforcement staffs today in contrast to' other times.
In the area of income tax fraud we are dealing with a base of
Federal taxpayers greatly broadened over the prewar base, and
our problem is a mixed one of mass education and effective
exemplary criminal punishment of defrauders.
Compared with
war times, greater activity is required for the same dollar
return because the war-swollen profits of black marketeers and
other evaders have diminished and the return per individual in
fraud cases has been reduced.
In counterfeiting there has been
a tendency toward consolidation of activity in more complex and
resourceful hands, with consequent multa plication of the time
and effort necessary for successful suppression or each case.
The volume of Federal checks in number and aggregate amount has
increased so much during the war that forgery has multiplied
remarkably. Illicit traffic in alcohol again has available the
sources of sugar and other materials of which .it was deprived
wÜi? Indeed, this may be symptomatic of the problem
wnich faces this Committee in many areas of crime enforcement
where_ the facilities of quick communication and transportation
and the management genius of the lawless typify the organized
crime to which this Committee is directing its attention.
In closing, let me again pledge to you the wholehearted
cooperation of all elements of the Treasury Department in this
important undertaking. If you wish, the heads of the Treasury
enforcement agencies will now present their statements,
commencing with Mr. Bolich.
0O 0
IMMEDIATE RELEASE,
Wednesday, June 2d> ISffQ»
5 _
Ik© Secretary of the Treasury today announced the subscrip
tion and allotment figures with respect to the current offering
of 1~1/U percent Treasury Notes of Series E-19S1, to be dated
July I# 1^50.
Subscriptions and allotments were dlrided among the seyeral
Federal Reserve Districts and the treasury as follows t
Federal Reserve
District
Boston
Total Subscriptions
Received and Allotted
#
New Tork
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
it* Louis
Minneapolis
Kansas City
Dallas
San Francisco
Treasury
TOTAL
88,879*000
3,556,101,000
132,780,000
11)3,186,000
55,211,000
90,101*,000
557,200,000
129,81)6,000
89,008,000
151),923,000
89,1)67,000
259,51)0,000
3,927,000
$5»3#>fl72,000
IMMEDIATE RELEASE,
W e d n e s d a y , J u n e 26,
1 9 5 0.
S-2380
T h e S e c r e t a r y of the T r e a s u r y t o d a y a n n o u n c e d
the s u b s c r i p t i o n a n d a l l o t m e n t .figures w i t h r e s p e c t
to the c u r r e n t o f f e r i n g of 1 - 1 / 4 p e r c e n t T r e a s u r y
N o t e s of S e r i e s E - 1 9 5 1 , to he d a t e d J u l y 1 , 1 9 5 0 .
Subscriptions and allotments were divided among
the s e v e r a l F e d e r a l R e s e r v e D i s t r i c t s a n d the
T r e a s u r y as follows:
Federal Reserve
D i s tr ic t
Total Subscriptions
Received and Allotted
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
S t . Louis
Minneapolis
Kansas City
Dallas
San Francisco
Treasury
$
8 8 ,8 7 9 , 0 0 0
3,556,101,000
132,780,000
143.186.000
55.211.000
90.104.000
557 , 200 , 000 '
129.846.000
8 9 .0 0 8 . 0 0 0
154.923.000
89,467,000
259.540.000
___ 3 , 9 2 7 , 0 0 0
TOTAL
$5,350,172,000
0O0
- 3-
xmx
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 ll£ of the
Revenue.Act of 19hl* the amount of discount at which bills issued hereunder are
sold shall not be considered to accrue until such bills shall be sold* redeemed, or
otherwise disposed of* and such bills are excluded from consideration as capital
assets.
Accordingly* the owner bf Treasury bills (other than life insurance
companies) issued hereunder need include in his income tax return only the
difference between the price paid for such bills* whether on original issue or
on subsequent purchase* and the amount actually received either upon sale or
redemption at maturity during the taxable year for which the return is made* as
ordinary gain or loss.
Treasury Department Circular No. .I4.I8 * as amended* and this notice* prescribe
the terms of the Treasury bills and govern the conditions of their issue.
'of the circular may be obtained from any Federal Reserve Bank or Branch.
Copies
-
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 tenners will be advised of the acceo/tance or rejection thereof.
The Secretary of the Treasury expressly reserves the right to accept or reject
any or ail tenders, in whple or in part, and his action in any such respect shall
be final.
Subject to these reservations, non-competitive tenders for $200,000 or
less without stated price from any one bidder will be accepted in full at the
average price (ip three decimals) of accepted competitive bids.
Settlement for
accepted tenders in accordance with the bids must be made or completed at the
Federal. Reserve Bank on
Julv^6| 195>0______ j in cash or other immediately avail
able funds or in a like face amount of Treasury bills maturing
July 6, 195>0
—
Gash and excnange tenders 'will receive equal treatment.
.—
Cash adjustments, will be
made for differences between the par value of maturing bills accepted in exchange
and the issue price of the new bills.
The income derived from Treasury bills, whether interest or gain from the sale
or other disposition of the.bills, shall not have any exemption, as such, and loss
from the sale or other disposition of Treasury bills shall not have any special
treatment, as such, under the Internal Revenue Code, or laws amendatory or supplemen
tary thereto.
The bills shall be subject to estate, inheritance, gift or other
excise taxes, whether Federal or State, but shall be exempt from all taxation now
or hereafter imposed on the principal or interest thereof by any State, or any of
the possessions of the United States, or by any focal taxing authority.
For
TTffî^nnïïTnmnnorr
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Friday, Jane 30, 19$Qo__________
The Secretary of the Treasury, by this public notice, invites tenders for
I 1«000.000*000 , or thereabouts, of
&
91
" W -
in exchange for Treasury bills maturing
-day Treasury bills, for cash and
July 6
T Q ^ n ____ , 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
— a r —
1950
Jaly 6, 19$0
, and
s 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
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
vmieh will be supplied by Federal Reserve Banks or Branches on application
theref or.
Tenders will be received vm_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
T R E A S U R Y
D EP A R T M EN T
Information S e rv ice
RELEASE MORNING NEWSPAPERS,
Friday, June 30, 1950 « ___
WASHINGTON. D .C .
8 -2 38 X
The Secretary of the Treasury, by this public notice, invites
tenders for $1,000,000,000, or thereabouts, of 91-day Treasury
bills, for cash and in exchange for Treasury bills maturing
July 6 , 1950, to be issued oh a discount basis under competitive
and non-competitive bidding as hereinafter provided. The bills of
this series will be dated July 6 , 1950, and will mature October 5*
1950, 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 00 , $ 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 3, 1950. 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 on 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
2
(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 6 , 1950, in cash or
other immediately available funds or in a like face amount of
Treasury bills maturing July 6 , 1950. 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 k2 and 117 (a-') (1) of the Internal
Revenue Code, as amended by Section 115 of the Revenue Act of 19^1,
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 here
under need include in his income tax return 6nly 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
-5~_
\
Commissioner of Customs Frank Dow announced today that new types
of bonds and new bonding procedures for import transactions, announced
recently in Treasury Decision 52k03, will go into effect on July 1 5 .
The revised system, a major step in the Bureau's program for simplf
fication of Customs procedures, required the printing and distribution
to Customs offices throughout the United States of new forms for bonds
to be posted by importers to cover payment of any duties that may be
found owing the Government after merchandise has left Customs custody.
Commissioner Dow said collectors of customs now are being supplied with
the new forms, and will be prepared to transact business under the
simplified method on the effective date.
Where importers or their agents have unexpired term bonds of the
old type, the principals and sureties on such bonds will be permitted
to execute stipulations extending the coverage to all conditions pre
scribed in the new forms.
Reduction of paper and accounting work for importers and their
agents, and for Customs, and speedier release from Customs custody
of
packages retained for examination are expected to result from the new
procedures.
T R E A S U R Y
D EP A R T M EN T
Information Service
IMMEDIATE RELEASE,
Friday, June 3 0 , 1950.
WASHINGTON, D .C
S-2382
. . Commissioner of Customs Prank Dow announced
uoday that new types of bonds and new bonding procedures for import transactions, announced recently
in Treasury Decision 52403, will go into effect on
bUiy J.0 .
The revised system, a major step in the
Bureau’s program for simplification of Customs
procedures, required the printing and distribution
to Customs offices throughout the United States of
new forms for bonds to be posted by importers to
r z r nv f^
dutl,es that -nay be found owing
the Government aiter merchandise has left Custom^
custody. Commissioner Dow said collectors of
customs now are being supplied with the new forms
and will be prepared to transact business under ’
the simplified method on the effective date.
Where importers or their agents have unexpired
term bonds of the old type, the principals and
sureties on such bonds will be permitted to execute
prescrihednL
prescribed
in eiiendlngethe
the new forms.cover'®ge to all conditions
Reduction of paper and accounting work for
importers and their agents, and for Customs, and
re?a?ned
P 0?,'Customs custody of packages
retained for examination are expected to result
from the new procedures.
B S L M S S MOBBING KBNSMJPBHS,
fa*»day. Ju 3j |* 1950.
She Secretary of the SXreaeury announced last evening that the tenders for
$1,000,000,000, or thereabout«, of 91-day Treasury bills to be dated July 6 and to
nature October 5» 1950, which were offered on June
30 , were opened at the federal Ee-
serve Banks on July 3*
She details of this Issue are as follows!
So tal applied for - $1,608,114,000
total accepted
- 1,003,298,000
Average price
(includes $86,243,000 entered on a
no n-eomp ©titive basis and accepted in
full at the average price shown bolow)
- 99*703/ Suivaient rate of discount approx* 1.174$ per annua
lange of accepted competitive bides
- 99*709 Equivalent rate of discount approx* 1 .151 $ per annuo
- 99*702
*
■
*
*
»
1.179$ *
■
low
(57 percent of the amount bid for at the low price was accepted)
federal Beserve
District
fetal
t o l l e d for . .
fatal
Accented
Boston
Stow York
Philadelphia
Cleveland
Bichaond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
$
$
TOTAL
14,327,000
1,182,429,000
26,243,000
28,825,000
11,085*000
4,052,000
169,798,000
22,752,000
3.879,000
19,9^3,000
34,807,000
89.97fr.000
$1,608,114,000
14,327,000
679,489,000
15.803,000
28,682,000
11,085*000
4,052,000
115,178.000
19,319,000
3.879,000
19.9fr3,ooo
27,907,000
6 l.6 ifr.o o o
$1,003,298,000
RELEASE MORNING NEWSPAPERS,
Tuesday, J u l y 4, 1950.____ _
S-23Ö3
The Secretary of the Treasury announced last evening that the
tenders for $1,000,000,000, or thereabouts, of 91-day Treasury bills
to be dated July 6 and to mature October 5? 1950, which were offered
on June 30, were opened at the Federal Reserve Ranks on July 3.
The details of this issue are as follows:
Total applied for - $1,608,114,000
Total accepted
1 ,0 0 3 ,2 9 8 ,0 0 0 (includes $86,243,000 entered
.on a non-competitive basis
and accepted in full at the
average price shown below)
Average price
- 99-703/ Equivalent rate.of discount approx.
I.I74 % per annum
Range of accepted competitive bids:
High
- 99*709 Equivalent rate
1.151$
- 99*702 Equivalent rate
1.179$
Low
of discount approx.
per annum
of discount approx.
per annum
(57 percent of the amount bid for at the low price was accepted)
Federal Reserve
District
Total
Applied for
$
14,327,000
1,182,429,000
26,243,000
2 8 ,8 2 5 , 0 0 0
$ 1 ,6 0 8 , 1 1 1 , 0 0 0
$ 1 , 0 0 3 ,2 9 8 , 0 0 0
in
co
0
, ^1
1—1
22,752,000
3,879,000
19,943,000
74,807,000
§9,974,000
14,327,000
679,489,000
1 5 ,8 0 3 , 0 0 0
2 8 ,6 8 2 , 0 0 0
1 1 ,0 8 5 , 0 0 0
4 ,0 5 2 , 0 0 0
1 1 5 ,1 7 8 , 0 0 0
19,319,000
3 ,8 7 9 , 0 0 0
1 9 ,9 4 3 , 0 0 0
2 7 ,9 0 7 , 0 0 0
6 3 ,6 3 4 , 0 0 0
0
0
0
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
4,052,000
1 6 9 ,7 9 8 , 0 0 0
TOTAL
Total
Accepted
0O0
$
T R E A S U R Y
D EP A R T M EN T
WASHINGTON, D .C .
Information Service
mmtrn-
release
-
S-2j
NONDAY, JULY 3, 1950
In a statement on budget results for the fiscal year ended June 30,
1950, Secretary of the Treasury Snyder announced today that expenditures
of the United States Government amounted to $50,l6?,000,000 as compared
with 050,057,000,000 in the previous fiscal year.
Net receipts for the
year just ended amounted to 037,055>000,000 as compared with net receipts
of $38,256,000,000 for the fiscal year 1959.
The budget deficit for the fiscal year 1950 amounted to 03,122,000,000
as compared with a deficit of $1,811,000,000 for the fiscal year 1959.
This increase in the deficit of $1,311,000,000 is accounted for almost
entirely by the reduction of $1,201,000,000 in net budget receipts.
The
deficit for the fiscal year 1930 is $2,511,000,000 le53s than the deficit
estimated in the Presidentas Budget in January,
Both expenditures and
receipts for 1950 were lower than was estimated in January —
expenditures
by $3,130,000,000, and receipts by $718,000,000,
A comparison of budget results for the fiscal year 1950 with similar
data for 1959 is shown in the table below (in millions):
Expenditures
Net receipts
Deficit
Fiscal
Year 1950
Fiscal
Year 1959
050,167
37>055
050,057
3>122
38,256
Change, 1950
compared
with 1959
+0110
-1,201
+1,311
Detail on receipts and expenditures is shown in the attached table*
- 2 The gross public'debt, on June 30, 1950 amounted to 3257,357,000,000,
an increase of f t , 587,000,000 during the year.
The change during the year
was accounted for primarily by increases in Treasury savings notes and
United States savings bonds; marketable debt increased by only 3172,000,000,
Special issues to Government trust funds and investment accounts decreased
31420, 000,000 during the fis c a l year 1950 as compared with an increase of
32,561^,000,000 in 19li9*
The decrease in 1950 was due to redemptions of
special issues held by the National Service Life Insurance Fund in con
nection with payment of special dividends amounting to ¡[¡>2,633,000,000
during the year just ended*
years
19 lt9
and
1950
A comparison of the changes during the fis c a l
in the various classes of the public debt is shown in
the attached table.
The increase of 31;,587,000,000 in the public debt reconciles with the
budget d e ficit in the following way (in millions):
Budget d e f i c i t ....................
L ess ex c e s s o f r e c e ip t s in
t r u s t a c c o u n ts , e t c . ft •«•«•••••
f
33,122
,582
2 , 5 Uo
S u b to ta l
In c r e a t >e in- G eneral Fun d b a l a n c e ..
Total ~ in c r e a s e in th e p u b lic
deibt ..................................
2 , 0li7
I t ,$87
y Snydei’ s a id t h a t t h i s summary state m ent i
prior to the publication of detailed information in the June 30, 1950 issue
of the Daily Treasury Statement, which w ill be available in printed form
on July- 5*
-
0
-
Attachments
•£/— Takes in to' accou nt th e c le a r in g account f o r o u tsta n d in g c h e c k s, i n t e r e s t
coupons, and t e le g r a p h ic r e p o r ts from F e d e r a l Reserve B anks.
Attachment Mo, 1
Com parative St a tement o f Budget R e c e ip ts and Expendi t u res
F i s c a l y e arn 19
ano 1950
(B ased upon D a ily Treasury Statem ents)
I n m illio n s o f d o lla r s
C la s s ific a tio n
Fiscal
Fiscal
y ea r
1950
year
I9U9
!
Receipt s i
In te rn a l revenue:
Income t a x i
$10,073 j
W ith h eld “by em ployers . . . . . . . . . . . . ...................... . . . . . . . . . . . . .
1S,1S9
Other • . . . i
.• •
,
...............
M isce lla n e o u s in t e r n a l revenue , . . . ................... , . ..............................
8,303
S o c ia l s e c u r it y t a x e s :
2,106
Employment ta x e s
.
226
Tax on employers o f S or more
550
Taxes upon c a r r ie r s and t h e i r e m p lo y e e s ............................ . . . . . . . .
R a ilr o a d unemployment in su ra n ce c o n tr ib u
t io n s f o r a d m in is tr a tiv e expenses ...................................................... ....
9
U 23
Customs
............• • » «• f ••»* * * •«»•* «7 *7
* •»* •
'26U
Surplus p ro p e rty (a c t O c t, 3» 1 9 $ * ) ............... ..
Other m isc e lla n e o u s r e c e ip t s . . . . . . . . . . . . . . . . . . . . . . .
1,166
T o ta l budget r e c e i p t s ....................... .....
,,•••• . . . . . .
^1,311
Deduct :
1
!.
A p p ro p ria tio n to f e d e r a l o ld -a g e and su r
2,106
v iv o r s in su ran ce t r u s t fund ..................................... ..................... ..
2,l60
R efunds o f r e c e ip t s
................. ..
Met budget r e c e ip t s « . , « » • * . . . ...................................................... ..
37,0^5
Expenditures :
L e g is la t iv e estab lish m e n t ................................................................ ..........................
The J u d ic ia r y .............................................................................................................. ..
A g r ic u ltu r e Department:
Farm ers1 Home A d m in is t r a t io n .................... . . . . . . . ...................
P ro d u ctio n and M ark etin g A d m in is tr a tio n :
Commodity C r e d it C o r p o r a t io n ............... ................................. .......................
Other ...........................................
Rural E l e c t r i f i c a t i o n A d m in is tr a tio n » • • • * , • • • . , ,
Other
Atomic E nergy Commission ....................................................................................... ..
C iv il S e r v ic e Commission:
Em ployees1 retire m e n t funds (IT, S . sh are) . . . . . . . . . . . . . . . .
Other
Commerce. Department :
C i v i l A e ro n a u tic s
..............
M aritim e A c t i v i t i e s
P u b lic Roads • • • • . .
Other .................................. ............................................ ..
i
i
!
1,690
10
3Sh
5S9
" l.,.**83.1_
>+2,774
1,690
2.S3S
3S,2U6
U6
IS 2
125
1 717
1 ,62S
U03
516
293
356
Kph
21
331
277
6H7
303
225
19
166
I5U
lUU
>+37
S5
PI
9U
$?6
125
.
223
56U
• 36
2U
i
I
$9tgU 2
19,6Ul
g,3 US
Attachm ent ITo. 1 - page 2
Com parative Statem ent of* Budget R e c e ip ts and Fpçpenditu r es
F i s c a l y e a r s I 9V 9 and.. 1950 — Continued
F is c a l ' J F is c a l
year
year
C la s s ific a tio n
- I 95O
Expenditures — Continued
Defense Department:
O ffic e o f th e S e c r e t a r y o f D efen se:
R e tir e d pay— m il i t a r y s e r v ic e s . ,
Other
,,M,
A ir F o r c e - .................. 08»c «ea.*<>.n«* ja«*. ««*•..
Army
150
il
3,506
5,70*1
Uavv
Economic C o op eratio n A d m in is tr a tio n ;
Economic C oop eration A ct
Other ...................................................................... ................................
Executive O f f i c e o f the P r e sid e n t . . . .
Export-Im port Bank o f W ashington ...................................
Federal S e c u r it y Agency:
S o c ia l S e c u r it y A d m in is tr a tio n
Other
.................... ..
...
General S e r v ic e s A d m in is t r a t io n ............................. ..
Housing and Home F ip a n ce Agency:
O ffic e o f A d m in istra to r
,
Federal Housing A d m in is tr a tio n
Home Loan Bank Board .
P u b lic Housing A d m in is tr a tio n
In te rio r Department:
Bureau 0 f Reclam at io n
Other . . «
*
$
»
#
»
. . * e * #. • * * * #* * . , « , , .
Ju s tic e Department . . . . . ....................... . .................. . . . . . . . . . . . ................
>■01 ean A i d . . « . o . . .
Labor Department
Mutual D efen se A s s is ta n c e . . . . . . . . . . • • 9 O 9 9 9 9 a o 9 9 9 © 9 © © 9 9 9 0 ©
Post O f f i c e Department ( d e fic ie n c y )
Railroad R etirem ent B oard:
R a ilro a d retirem en t accou nt . .............. ...
0090909999#
ther . . . . . . . . .
-©construction F in an ce C o rp o ratio n . . . . . . . . . .
State Department .......................... ..
Tennessee V a lle y A u th o r ity
.
Treasury Department:
In te r e s t on the n u h lic debt a « 9 c * « « e 9 3 9 0 0 9 * 9
• 9 0 •
© * © f O 0 9 3 © 9 9 # 9 #
* © 9
3 0 » V 9 9 4 « « *
<*• #<*
4 9 9 9 9 9 9 9 9 9 9
9 o a 9 9 o * • # • *
0 0 9 0 9
0 * 9 9 9 6 9 9 1 0 9 9 9 9
3 • • • • • 0 9 0
o o e o a o Q O a o o o o a o o
.
rr .
veterans
A d m in is tr a tio n :
*0,*
Other” * 1 SerViCe l i f ® in s u r a n c ®
& a g e n c ie s
.......................................
T o ta l budget exp en d itu re:
Budget d e f i c i t ..................
0.
9 .
0
9 9 « o 0 #
. » . . . « • < > •
.0 ...... ......
.................................. ................
• 090
0 9 0 9
12i£i
4,125
3,523
j
5
1,690
7,7****
V *3 l
b/M^
S
**5
132
13
a /60
1,15**
277
5SS
952
20*4
512
29
2
1
3
s
a /275
a /1 1 7
52
300
276
131
2U7
243
12s
ho
25 s
UU
593
583
13
589
339
IS
5,750
670
U73
6,o¥+
336
*10,167
3 , 122 "
179
52*4
574
19
31U
332
29
5,339
7**5
37
6,791
353
**0,057
1,811
----- —
Includes $3 ,0 0 0 ,0 0 0 ,0 0 0 expended from F o re ig n Economic C o op eratio n Trust Fund
*/ excess o f c r e d i t s , d e d u c t.
Attachment ITo. 2
Changes in Public Debt
(in raillions of dollars)
j
Classification
J
______________________ •_____ :_____ '______
Treasury savings notes .............. ...
4..... c
Special issues ..................... .
All other obligations
Total ..........
a/
Fiscal
year
19*19
1950
+$3,601
+$1+63
+1,296
U* S# savings "bonds
Marketable obligations
Fiscal
year
...... .
+3,000 a/
+172
- 5 ,21+5
-1+20
+ 2 ,56I+
-62
i
+>*,587
Includes special offering in July, I 9I+S of Series F
and G- Savings Bonds to institutional investors
amounting to $1 , 126, 000, 000$ There was no such
special offering during the fisc a l year 1950*
-30l+
+1+78
Attachment Ho* 3
Disposition of Matured Marketable Securities
During Fiscal Year 1950 1/
(in millions of dollars)
Date of
maturity
or call
Matured or called securities r
Rate of
|Dayable
Class
Interest Amount in cash
Uxjty
Certificates
1- 1 /8$
9/i5/^9
Bonds
10/1/U9
Certificates
12/15/1+9
12/15/U9
12/15/1+9
12/15/1+9
Certificates
Bonds
Bonds
Bonds
1/1/50
Certificates
1-1 /kfo
2/1/50
Certificates
3/1/50
$5,783
$182
2i
1,292
96
1-1 /*+$
6,535
Disposition
Exchanged
Hew Security
1 yr. 1-1/14$ Cert.
1
1-1 /8$
$5,601
Cert.
1,197
288
1 yr. 1-1/8$ Cert*
6,21+8
‘35)
70)
2k)
90)
k-lfk yr. 1- 3 /8$
Hote
5,695
322
1 yr. 1-1/8$ Cert.
5,373
1- 1 /1+$
1,993
75
20
mo.
1-1 /1$
Rote
1,913
Certificates
1-1 /H$
2,922
ISO
16
mo*
1-1 /1+$
R0te
2.7*U
3/15/50
*1/1/50
Bonds
Hot es
1 -3 /$i
2$
1,963
3,596
*1/1/50
Certificates
1-l/kfo
963
6/1/50
Certificates
1-1 /U$
1l/kfo 519
2$
2,098
.3- 1 /8$
U91
21 / 2i1,736
Total
5
1
102) 5
92)
76
5,019 |. .
1+0,651+
201
1
| 1,333
i
15
yr.
Amount
yr. l-l/2$ Rote
1-1 /1+$
( 1+SH
(2,028
( U67
(1,696
(l,36l
(3.50*+
Rote
886
13 mo. 1-1/1+$ R0te
1+,81S
mo.
38,822
™ote: Figures are rounded and will not necessarily add to totals*
J This table does not take into account a net increase of about $ 2,000,000,000
in outstanding Treasury Bills*
Address
Name
/
Leager A# Younger
844- 51st St*, N#E#T Washington,~IU_C*
Anna L* Wade
1510 Mt# Eagle Place, Alexandria^ V&*—
/
V ir g il Beachboard
4808
V irg in ia Dodge
2502 Lee Highway, Arlington^ Vet.—
Raymond L# Hardesty
Lem s Menen
/
/
14th St#, N»W#j Waehingtonj—
4835 New Hampshire Avenue, N#W#} Washington, -B -..C,
1332 Massachusetts Avenue, N*W#VJte*fr» ^5ttsH faohington^h£
Name
4330 7th St., N. ¥.,
P atrick J . Larkin-
1530
f- Joseph C . Nagle
7
16th St.^ Nr w j Washington? D« 0-»- 3 H ' S y
503 Chillum Road, Hyattsvillejf Mai1¿'land--*
Harry B. D e lle tt J
9
Howard R . Staten^ 0 * 8 ,
1482 East 9th So, St., Salt Lake City/ i&aisr*
Bennie M. H orton. > T O
1234 So.Taylor St.,Barcrofft Aptc.,Apt *
J
H pyd B. Grenell
.,..
£ 0 * .
Eleanor S . Alick^
3902 Madison St., Hyattsville* Maryland
463 Orange St., S.E.*, Apt.#33 Waohingt on- feu,
W alter G. W illard
/
Florence E . Schorle,
i~ Warren M. Kautz
.
3918 Tunlaw Terrace, N.W.J* W i-rhination, D , Cm
1315
20th St., N.W.J Waohington, D. 0»
2911 Old Dominion Drive, Arlington^ -¡fa*«*
John Tomchik
4716
/
Charles Mehrman
Lura Dodd
;
45th St.,N.¥.$ l^tashington, D . Of»
■Flint 'Houo£ , American U n iversity ^ Washington 16, D*
705
Kermit D. Ross
Arlington^ ’4 ^ 4
S
18th St., N.Wv, w ^ ^ n g V ”!
D. C ,
3650 11th Street N. W#; Washington, D ; -0-;
r
2013 New Hampshire Avenue N. W . ‘ Washington, 9.
,
.L-James O ’Connor
—
J
402 Oklahoma Avenue N. E.*, Washingtorij T) fi.—-»
^-George Mudd
519 46th Street S. E.,~
Clyde S. Smithy
2466 Ontario Road N. W.~ Washlngt'
cnr 9, D. ( V ^-
Norman C. Copp^
1626 Rhode Island Avenue N. W.J Waahington, D.- C . -■
V
Washington 19, D.
6^"
Ulysses Goodson
Ir ¡Stanley W olicki
J
Timothy P. O ’Sullivan
4 )seph J . Walsh
1126
11th St*, N* W.f Washington^ D* CK
3815
37th St*, Mt* R ainiery Maryland-»»
1449 Rhode Islan d Avenue, N#W*J Waahingtr
Raymond L . Trego
2235 Pront S t .,S * E * J
Robert B* B ailey
2820 Covington Road, Borcat QIlt^ S ilv e r Springy
A lfre d W* Hoffmann
2515 K S t ., N.W.^ Waahington, D* 0*
, ri^ I
Genevieve M. B askfield
300 New Jersey Avenue, S *E *f ftp-fa-
N e llie Martin
MnRfiynnTd? rt.pawtmontJ^ 18th & G S tr e e ts , N^W.l^ashin gton,«
J
jja ck E
3ugene.
^ p. H
2009 Eye S t ., N .W .; w
A f Spyridon G. Kapponis^
Max A . Standard
/
5112 Sherrier P la ce , N.W.£ Washington, lfr y P . 0* 20 M onticello D rive, Jpffor non Manors Alexandria! Sim
Eleanor S . A lic k ,
463 Orange S t * , 3 .E .’, Apt *#3 5 Waohington "-fcu,
W alter G* W illard
3918 Tunlaw Terrace, N.W.y WTTHirfinnj D. fl,
Florence E . Schorle,
1315
Í- Warren M. Kautz
*
20th S t . , N*W.J Idohingt-on, D* 9»
2911 Old Dominion D rive, Arlington^ -ffa»*«
John Tomchik
4716
Charles Mehrman
F lin t lioua^ , American U niversity^ Waohingfron 16, D»
Lura Dodd
705
/
Kermit D. Ross
45th S t.,N * ¥ .$ l^Sashington, D*
18th S t . , N.Wv, Washington 6, D» C * ^
3650 11th Street N. W.; Washington, D* ■
C;--r
;
.L-James O ’Connor
J
ii-George Mudd
2013 New Hampshire Avenue N. W.,' Washington 9, D^..G ,
402 Oklahoma Avenue N. E.* W^sh ingt nn , P
G ■-*
Ulysses Goodson^
519 46th Street S. E.p Aptr^#l, ISasftiñgtón 19,
Clyde S. Smithy
2466 Ontario Road N. W,~ Washington 0, D.
Norman C. Copp^
1626 Rhode Island Avenue N. W.J Washington, D . C .
-
2-
* -Mftmp
— Address-------
Raphael Avallone^
655 Maryland Avenue, N. E./ Washington, D . CTT1 -
Beverly Lake^
2531 Congress Street, S. E ^ A p t . 1fal, Washing Lull, D. UT
Alice K. Hooker
139 C Street, S. E,; Washington 3, D. 07"
)
Clarissa L. Fairoloth
7313 Gateway Boulevard, S. E.' Washington ISy D. C. •—
-Elizabeth Faulconer
1216 North Livingston Street, Arlington/”Virginia—
•Robert W. James
3440 25th Street, S. E«/~Wpshington 2n,— P T c ■_
y
Lola H. Robey
811 Otis Place, N.
-Virginia M. Booher
Apt* 35, Washingluii'~10,"^rT~C,
117 Winchester Way, Falls Church/ Virginia —
/
Leo Stepper
936 Madison Street, N. W*/ Washington 11; S. Q.
,
r
1*0♦ Marshall Jenkins
2515 Wisconsin Avenue, N. W .7 Washington
y
7,
Edward R.Conner
4018 First Street, S. W.;»Washington^ D»—€.
Robert L. Hooker^
139 C Street, S. E.*
i.-Santos M. Magana^
^
D-
1007 DeBeck Drive (Ruokores IT)’ Rockvillef; Mnrylnnfl j
-Orlando H. Smith, Jr..
1711 19th Street N. W.; WaghAnghnn, D. C ,
Thomas L. Mitchell
2012 Perry Street N. E.; Was h ington 10, D. Ci*
John E. Bowie,
4640 Blaine Street N. E.’ Washington 19,HE). T .
/
L-Sallie A. C. Claiborne
y
Ida B. Draper
2745 Macomb Street N. W.j Washington
/
Kenait D. Ross
1832 Ontario Place N. W.*, Washington dt D. 9*.
y
6,
D. C~;—
3650 11th Street N. W.' Washing bon, D-.--C";— r
-James O ’Connor
2013 New Hampshire Avenue N. W./ Wa-gViing-hnn ^
-George Mudd
402 Oklahoma Avenue N. E.*, Wash ing tnrij P .
D. C.
Ulysses Goodson
519 46th Street S. E.,~ Aptv^t^ foasftinglon 19, D. d’*3“’
Clyde S. Smithy
2466 Ontario Road N. W,~ Washington. 9, D.
Norman C. Copp^
1626 Rhode Island Avenue N. W.J Wnahington, D, C . —
y
2
each month of the dividend program practically every
operation of the highly-mechanized unit shoved an
increase in output per employee, and on some days
production exceeded 2 5 0 ,0 0 0 checks, an increase of
approximately 25 percent over estimates.
The names of those receiving the awards, and the
amounts of their individual checks, follow------- > ----- ------- ----------
J ...-.
_
Patrick J / Larking $ 5 0 Joseph”C . Nagle, $1*5 ;
Harry Dellett, $45 5 Howard Staten, $40j Bennie Horton,
$40; Lloyd B. Grenell, $ 3 5 .
\
\
I
Checks forjfrjO were presented to Stanley Wolicki,
Timothy O'Sullivan, Joseph Walsh, Raymond Trego,
Robert Bailey, Alfred Hoffman, Genevieve M. Baskfield,
Jack Eugene, Nellie Martin.
Checks for $ 25 went to Spyridon G. Kapponis,
Max A. Standard, Eleanor S. Alick,
Walter G. Willard,
Florence E. Schorle, Warren M. Kautz, John Tomchik,
I
Charles Mehrman, Lura Dodd, Raphael Avallonne, Beverly Lake\,
Alice Hooker, Clarissa Faircloth, Elizabeth Faulconer,
Robert James, Lola H. Robey, Virginia M. Booher,
j
Leo Stepper, 0 . Marshall Jenkins, Edward Conner,
Robert Hooker, Santos Magana, Orlando Smith, Thomas Mitchell,
John E. Bowie, Sallie A. C. Claiborne, Ida B. Draper,
Kermit D. Ross, James O'Connor, George Mudd, Ulysses Goodson,
Clyde S. Smith, Norman C. Copp, Leager
A.
Younger,
Anne L. Wade, Virgil Beachboard, Virginia Dodge,
Raymond L. Hardesty and Louis Mennen.
0O 0
y
F
rj
^ /fsfû
Secretary Snyder today presented cash awards totaling
$1,500 to 54 employees of the Division of Disbursement, Bureau
of Accounts. The payments were in recognition of the contribution
W % cc,enosr*ÿ
_
made^by employees of the National Service Life Insurance Branch,
Washington Regional Disbursing office, to ooonoiny in the
issuance of checks covering dividends on Veterans* insurance.
These awards were the first to be made by any brancji
of the Government under Title X, Section 102 of .Public Law 429,
81st Congress, which authorizes agencies to reward groups of
employees for reducing the cost of operations.
The awards
given out today ranged in amount from $50 to $25 each.
Congress last year appropriated $637,900 to the Division
of Disbursement to pay for issuing 14,225,000 dividend checks
to holders of National Service Life Insurance Policies.
F**om
January 1 through June 30, approximately 14,720,000 checks,
with a face tfalue of $2,633,351,023.20, were issued, at a total
cost of $479,900.
The savings to the Government, which
Secretary Spyder attributed in large measure to the efforts
of the group chosen to receive the cash awards, was $158,000.
According to Veterans Administration; approximately
200,000 claims for dividends remain to be processed in the
insurance dividend program.
In presenting the checks, Secretary Stayder s a i d that the
record achieved by the Insurance^Branch in botn production and
economy was unusually fine. During
T R E A S U R Y
D EP A R T M EN T
Information Service
IMMEDIATE RELEASE,
Monday, July 3, 1 9 5 0 .
WASHINGTON, D .C .
S -2385
Secretary Snyder today presented cash awards totaling $1,500
to 54 employees of the Division of Disbursement, Bureau of
Accounts. The payments were in recognition of the contribution
made to economy by employees of the National Service Life
Insurance Branch, Washington Regional Disbursing office, in the
issuance of checks covering dividends on Veterans' insurance.
These awards were the first to be made by any branch of the
Government under Title X, Section 102 of Public Law 429, 8lst
Congress, which authorizes agencies to reward groups of employees
for reducing the cost of operations. The awards given out today
ranged in amount from $50 to $25 each.
Congress last year appropriated $637,900 to the Division of
Disbursement to pay for issuing 14,225,000 dividend checks to
holders of Rational Service Life Insurance Policies. From
January 1 through June 3 0 , approximately 14,720,000 checks, with
a face value of $2 ,6 3 3 ,3 5 1 ,0 2 3 .2 0 , were issued, at a total cost
of $479,900. The savings to the Government, which Secretary
Snyder attributed in large measure to the efforts of the group
chosen to receive the cash awards, was $ 1 5 8 ,0 0 0 .
According to Veterans Administration, approximately 200,000
claims for dividends remain to be processed in the insurance
dividend program.
In presenting the checks, Secretary Snyder said that the
record achieved by the Insurance Branch in both production and
economy was unusually fine. During each month of-the dividend
program practically every operation of the highly-mechanized unit
showed an increase in output per employee, and on some days pro
duction exceeded 250,000 checks, an increase of approximately
25 percent over estimates.
The names of those receiving the awards, and the amounts of
their individual checks, follow:
Patrick J. Larkin, 4330 7 th Street, R.W., $50; Joseph C.
Nagle, 1530 16 th Street, N.W., $45; Harry B. Dellett, 503 Chillum
Road, Hyattsville, $45; Howard R. Staten, 1482 East 9 th South St.,
Salt Lake City, $40; Bennie M. Horton, 1234 South Taylor Street
Arlington, $40; Lloyd B. Grenell, 3902 Madison Street, Hyattsville,
$35.
-
2
-
Checks for $30 were presented to Stanley Wolicki. 1126 1 1 th
Street N . W ; Timothy P. O'Sullivan, 3 8 l5 37th Street M t R a i n i e r ;
o ? ^ PL i ; 4-WtiSh^ l4 o9t,Rho5 \ Island Avenue^ N -¥ -; Raymond L. Trego,
2235 Pront Street, S.E.; Robert B. Bailey, 2820 Covington Road,
Silver Spring; Alired ¥. Hoffmann, 2515 K Street, N.W.*
?
^ VoeJepMQ
4-BaSifie^d
7r 300 ¥ew Jers0y Ave^ue, S.E.;> Nellie Martin,9
18«th
and G Streets,
N.¥.
Checks for $25 went to Jack Eugene, 2009 Eye Street N ¥ •
o£yMid2? G-,\Kapponis, 5112 Sherrier Place, N.¥.; Max A. Standard*
20 Monticello Drive, Alexandria; Eleanor S. Alick, 463 Oranse
Street, S.E.; ¥alter G. ¥illard, 3918 Tunlaw Terrace. N.¥.*
Florence E. Schorle, 1315 20th Street, N.¥.; ¥arren M, Kautz
°^d D?min^°? B r ± v e > Arlington; John Tomqhik, 4716 45th Street,
N.¥.; Charles Mehrman, American University; Lura Dodd, 705 18th
Street, N.¥.; Raphael Avallone, 655 Maryland Avenue. N.E.*
Beverly Lake, 2531 Congress Street, S.E.; Alice K. Hooker' 139 C
Street S.E^ darissa L. Faircloth, 7313 Gateway Boulevard, S.E.Elizabeth Faulconer, 1216 North Livingston Street, Arlington*
34;° ?5th Street* S.E.; Lola H. Robey, 8 ll Otis
Place, N.¥.; Virginia M. Booher, 117 ¥inchester ¥ay, Falls Church*
Leo Stepper, 936 Madison Street, N.W.;
0 . Marshall Jenkins, 2 515 Wisconsin Avenue, N.W.; Edward R
Conner 4018 First Street, S.W.; Robert L. Hooker, 139 C Street,"
Santos M Magana, 1007 DeBeck Drive, Rockville; Orlando H.
street Jw'w
Thomas L. Mitchell, 2012 Perry
Street, W.E.- John E. Bowie, 464o Blaine Street, N.E.: Sallie A C
Street^w’w 1 w °n^ rn° Plaoe* N.W.; Ida B . Draper, 27^5 Macomb"
oof? wi, N™W *; ??rmi? D - Eoss> 3650 llth Street, N.W.; James O'Connor,
to°p 3 New Hampshire Avenue, N.W.; George Mudd, 4o2 Oklahoma Avenue,
? ^ V UiyS3es Goodson> 519 ^6 th Street, S.E.; Clyde S, Smith
Avennpntwru° R?adj
N °rman C C°PP, 1626 Rhode Island ’
& S I
h ™ geV A y °unger, 8W 51st Street, N.E.; Anna L. Wade,
Y- \TEagl® Place’ Alexandria; Virgil Benchboard, 4808 l4th
street, N.W.; Virginia Dodge, 2502 Lee Highway, Arlington?ard+ftyA' 4835 N tw HamPshir© Avenue, N.W,; Lewis Menen,
1332 Massachusetts Avenue, N.¥.
*
0 O0
3
eg'cupe-'tko.fr lfie'future course of world events is very
mucl in year mind^, fes^flt is in mifre•^'Increased (flsturbance to
woaLd peace would involve increased demands upon jbs which woul
require additional fiscal measures.
The House bill makes an inpoptant contribution toward meeting
te objectives of the President*! program presented in Jan
[owever, it does i ot go far enou ;h and should Tie improved
laraestly urge yo
'ill, in accord wl
ie changes whijh would lying the
mir pr-Asm.
¡¡«^.ranaa&s»
The effect of, recent international developments on our
sjjAJj
expenditures « M R
/_ t
-~x
become clearer as events unfold»
J
f during
the courwe of your consideration of this legislation it appears
that we are confronted with a substantial increase in defense
expenditures and strains on the economy, I shall not hesitate to
so advise you»
As the President indicated in his tax message,
we must be ready to gear changes in the revenue laws to the needs
of our economy.
These are times when our political and economic institutions
are challenged and we should not hesitate to protect and perfect
them.
A healthy economy, a sound fiscal and tax policy, fair and
adequate taxation are all parts of our pattern for nations!, strength
and world leadership.
33
The House bill makes an important contribution toward
meeting
the objectives of the P r e s i d e n t s program presented
in January* However, it does not go far enough and should be
improved. I earnestly urge you to consider the changes
which would bring the bill more in accord with our present
requirements*
I want to say once more that I am sure that the future
course of world events is very much in your minds, as it is
in mine. Increased disturbance to world peace would involve
increased demands upon us which would require additional
fiscal measures*
- 32 -
There is need also fot liberalizing the foreign tax credit
provisions as they apply to firms that derive income in one
foreign country .¿«dMLncur an offsetting loss in another^t^t^
SiA/
’ttiÆs
—
now accorded^ income earned abroad requires adjustment.
The present
exemption begins to apply only with the first full taxable year of
bona fide foreign residence.
There is no sound reason why the
earnings of the first eleven months, say, of an individual *s foreign
residence should be taxed when it is clear that it is part of longterm employment abroad.
A c c o r d i n g l y was proposed that once an
individual qualifies for exemption as a foreign resident for a
taxable year, the exemption should apply retroactively to his
earnings throughout the entire period of his stay abroad.
sta g e s léd LixMr-Ulb lòfb lgn tft'x CT^&j^wklch-’- ^
has opeT.nfrrri nuccen*^my in the Income OT! fluid uhuuld be exfcwsCTetF^
In presenting my comments on the House bill I have undertaken
also to provide your Committee with the background of the program
which the President asked the Congress to consider*
- 31 One of these recommendations would treat the income of foreign
branches established by domestic corporations as the tax laws now
treat similar income obtained through foreign subsidiaries*
The
tax would be postponed until the foreign earnings are brought home*
Such a provision would eliminate tax differentials as a factor in
determining the organizational form of a foreign business operation
and would afford greater flexibility to those contemplating invest
ments abroad.
It would also permit reinvestment of foreign earnings
abroad without current tax consequences*
A corporation receiving dividends from a foreign subsidiary is
now permitted a credit for the income taxes paid abroad by the
subsidiary.
taxation*
This provision helps to eliminate international double
However, it applies only to a domestic firm which owns
a majority of the voting stock of the foreign corporation*
Conse
quently, when two or more U.S. firms undertake to share the risk of
a foreign enterprise, only one of them, at most, can be safeguarded
against double taxation*
One of the Department*s proposals in this
field would lower the majority control requirement so that ownership
of any substantial interest in a foreign corporation would qualify
a U.S. firm for the^ tax credit*
This would encourage joint ventures
abroad, and would facilitate the participation of local capital in
such enterprises*
- 30 -
One of these would weaken the estate tax law by excluding
certain gifts made in contemplation of death from the estate tax
base*
As I pointed out to the Ways and Means Committeev the best
over-all solution of the contemplation of death problem would be
to integrate the estate and gift taxes into a single transfer tax.
Pending a review by your Committee of the proposal for an integrated
I stwngly urge that the House amendment to the contemplation
of death provision not be adopted«
Another objectionable provision in the bill would exempt from
income tax, in cases where a closely held corporation is the principal
asset in the estate, the dividends paid by the coxporation to the
estate up to the amount of liability for death taxes.
While this
is intended to meet a special problem, the solution proposed would
invite^tax avoidance.
It would be preferable to deal with this
problem on a more limited basis or defer it until the broader
question of estate tax revision is considered.
Point IV tax proposals
The House bill contains no legislation carrying out those
parts of the Presidents tax recommendations which derived their
impetus from the Point IV program.
These recommendations relate
to the tax treatment of income derived abroad and are designed to
remove tax deterrents to the flow of private investment and techni
cians to foreign countries.
- 29 -
59tate and gift taxes
Another conspicuous weakness of the House bill is the omission
of the long overdue estate and gift tax revisions*
The need for
strengthening these taxes in the revenue system is widely recognized*
Such a program has been repeatedly urged by the Administration, most
recently by the President in 19^8 and 19^9 and again this year*
The
revisions proposed in these taxes would make an important contribu
tion to additional revenue*
The present weakness of the estate tax and the failure of this
levy to keep pace with the income tax is clearly illustrated in
Charts 5 to 8*
The estate and gift taxes are now weak because
(l) the imposition of separate, unrelated taxes upon property
disposed of during life and at death permits undue escape from
taxation, (2) property left in trust is accorded extensive advan
tages over properly left outright, and (3) changes made in 19^8
result in excessive exemptions and unreasonably low effective
rates for married persons.
The program which was outlined to
the Ways and Means Committee would correct most of these defects
and would restore the revenue from these taxes to a level somewhat
above that reached prior to the 19^8 Act*
The House bill makes no provision for a general overhauling
of the estate and gift tax structure*
provisions which 9lHM|p«d undesirable*
A
Moreover, it contains two
Oorp<TTci(ji»iii& in the favored industries, and particularly a few
large corporations, benefit at the expense of the rest of the
business community.
The advantage is defended on the grounds of
special risks in the oil industry which, incidentally, is regarded
as a favored investment by conservative investment trusts. A business
man desiring to invest in a new product might incur greater risk, but
is limited in determining his taxes to the recovery of his actual
investment costs over the life of the property.
The allowance for
tax purposes of deductions many times the investment that may be
made in oil properties means that many other types of businesses are
now paying more taxes than they should in order to enable the
Government to recoup the tax leakage from percentage depletion.
Improvement of the equity and strength of the tax system requires
that we definitely reject the undesirable extensions made in this
bill and move toward elimination of these special privileges.
The
high level of revenue requirements which necessitates even the
retention of some onerous excise taxes makes this improvement the
more urgent.
Consequently, I wish to urge upon your Committee the
changes % proposed to the Ways and Means Committee which would carry
out the recommendation of the President that the more excessive special
depletion allowances permitted under present law be reduced*
This would reduce the revenue loss from these provisions by over
$200 million.
The staff is prepared to present to the Committee the
results of the Departments study of this subject, covering the amount
of the b
e
the economy.
n
e
f
i
t
t
h
e
i
r
effect on
The basis for these allowances is so vague that it can "be
readily applied to practically every situation.
Bach industry,
for example, can argue that it is essential to national defense.
The last war showed conclusively that practically every industry
is essential to an economy devoted to war.
After one mineral has
been given favorable treatment, no end is in sight to the list of
minerals that can plead for inclusion on the ground of competitive
inequity.
The special concessions now in the law create serious
competitive discriminations because of unreasonable disparities in
the percentage depletion rates.
There is even greater discrimina
tion between the groups favored with concessions and other industries
and classes of taxpayers not so favored.
In consequence, persistent
pressure may be expected to obtain equality by raising the lower
rates to the higher level and by extending benefits to other industry
areas.
The bill as passed by the House of Representatives goes so
far as to concede special tax relief to those who strip hillsides of
gravel.
This could be justified because similar treatment is to be
given to those who scoop sand off the seashore.
Because each group feels that special tax exemption can be
equally justified in its case as a means of fostering the growth of
that particular industry, the result is the development of a system
of concessions which is not only incongruous in a sound and equitable
tax system but which is also ill-suited for a ■geitionerib national policy
of mineral development and conservation.
- 26 J«£au<M-ioUt
or economic conditions.
However,
the
speed-up in corporate tax payments is not a revenue-raising measure
and therefore cannot he regarded as an offset to the revenue lost
from excise tax reduction.
Revisions in the Bill
Some provisions of the hill conflict with-sound taxation, and
I urge you to consider their modification or deletion.
These
include the further expansion of already excessive percentage
depletion allowances/^and^revisions affecting thè esta,te tax.
Percentage depletion
The most objectionable provision of the House hill is the
extension of percentage depletion to some 20 types of nonmetallic
minerals not covered hy present law and the increase in the rate of
percentage depletion for coal from 5 to 10 percent of gross income.
This action represents a continuation of the movement for
expanding depletion allowances which gathered momentum under the
guise of wartime necessity.
In 19^2, when percentage depletion was
first granted to hall and sagger clay, producers of other clays
complained of discrimination and inequitable taxa-tion.
So in later
years percentage depletion was extended to bentonite and china clay.
The House hill now proposes further extension to refractory clays,
fuller* s earth, fire clays, and brick and tile clays.
Such extension
would give rise to further claims of discrimination hy producers of
miscellaneous clays and in turn hy producers of synthetic and reworked
materials competitive with clay.
- 25 increased.
When the two-installment system is fully effective, one-
half the corpoiation income tax will he collected six months earlier
than at present.
The gradual transition to the more current system provided for
in the hill is desirable to prevent impairment of the working
capital position of corporations that have not set aside funds to
meet their accrued tax liabilities.
i M M M K
¿arger corporations
fund their tax liability currently by buying tax anticipation notes
or marketable securities as profits are earned.
Accelerated tax
payment will not affect the operations of these corpdrations except
to deprive them of part of the small interest income from their tax
funds.
The five-year transition should be sufficient to permit
smaller corporations to adjust their payments without hardship.
Moreover, the Commissioner of Internal Revenue can make extensions
of time if it should become necessary.
At the present level of corporate profits and under the rates
of the House bill, this speed-up in collection will increase fiscal
year 1951 "tax receipts by nearly $S00 million and receipts in each
of the four succeeding fiscal years by a »lightly larger amount.
This provision, in my opinion, is a desirable tax reform.
*t
will bring corporations closer to the current payment basis which
applies to business income of individuals, and will make corporation
income tax revenue more promptly responsive to changes in tax rates
%
- 2^ a d o p t s "by the House, the hi
r
i it stands/
involves an estimated
/ in
revenue loss of about $170 million.
Speed-up of Corporation Tax Collections
The provision of the hill changing the system for installment
payment of corporation income tax liabilities would substantially
increase collections over a five-year period beginning with the
fiseal year 195 1 .
This change does not alter the tax liabilities of
corporations but merely the timing of the tax payments.
The objective of the provision is to reduce the lag in corporate
tax payments.
At present, two-thirds of all taxable corporations,
accounting for 97 percent of total corporation income tax liability,
pay their taxes in quarterly installments during the year following
the close of the taxable year.
On the average, the corporation income
tax is now collected seven months after the close of the taxable y ^ r .
When this provision becomes fully effective five years hence, this
lag vrill be reduced to,four month's.
Operation of the plan is shown in Table 3 and Chart U.
It
would gradually replace the present ty-quarter payment privilege by a
system providing for payment of the full tax liability in the first
two quarters following the end of the taxable year.
However, this
would be accomplished over a five-year period during which each
year the tax paid in the third and fourth quarters would be reduced
and the tax paid in the first and second quarters correspondingly
- 23 Summary of Revenue Increases
fg<?o
The revenue-raising provisions of the "bill would yield ^
oM om At ¿S'T’Sf'
million in a full year of operation and i
A
► million in the fiscal
year 1 9 5 1 » as follows:
Fiscal
Full
year
1951
year
( I n m i liions)
Corporation tax increase ...........
$UlO
Life‘-insurance companies...... ..............
55
Charitable and educationalinstitutions.....
100
Miscellaneous loopholes ....................
125
Withholding on di vi de nd s...................
l 60
Reduction in interest rate on taxrefunds...
*40
$l 60
125
$S90
To tal,
This total falls short of matching the excise reductions hy
$120 million on a full-year basis.
You will note that the total
includes $^0 million resulting from the reduction in the interest
rate on tax refunds.
In my view this cannot be construed as an
improvement in the tax structure or an administrative reform, and
is an^equitable method of meeting our revenue requirements.
The figures I have given indicate the revenue that Tfould be
,
p. approximately $50 million, 11
raised before allowing for.
I shall return to these
undesirable provisions later in my statement.
Exclusive of increased fiscal year collections which would
result from the system of speeding up corporation income tax payments
jj.
22
The relief provided for small business by the revisions in the
corporate rate structure and in the loss offsets accords with our
objective to foster the development of this segment of the economy*
\
21
-
At the end of 19^9* corporations held more than $^0 billion in cash
and U. S. Government securities*
The Presidents recommendation for revision of the treatment of
business losses is also carried out in the bill*
Present law permits
taxpayers to offset their losses in any given year against profits
in the two prior years and to carry forward any remaining loss to be
offset against income in the two succeeding years.
The proposed
revision would increase the carryforward from two to five years and
would reduce the carrybacks to one year*
This would provide a total
period of seven years in which losses might be offset against profits
as compared with the present 5~i5rear period and thus reduce the tax
advantage now enjoyed by stable as compared with unstable businesses.
This libelallaatlun uf loss offsets would be of particular
benefit to new and small business and would promote their expansion*
Hew concerns usually experience losses or irregular earnings in
their early history, since the development of a new business generally
involves large initial cost» which cannot be recovered immediately»
Tifithnut-mtrrjrirtii prrni ntnn fnr r-rrp
i -T H ‘ r "'i
would noed larger resources tu begtir uperatlono and to-sustain—^tfaenr
tn-ths £iihi Jpeiw lUiiiCTliBHI ¿11 ui,
Small business in general encounters
great difficulties in withstanding the financial strain of hard times.
Large firms on the other hand have a greater opportunity to average
their own incomes because they are more likely to have diversified
products and markets.
Losses sustained from one activity or locality
can often be offset in the same year against income from other sources.
Chart 1*
ir
The m a x i m u m tax r e d u c t i o n w o u l d occur at
H
the top o f the
^
p r e s e n t n o t c h a r e a o n n e t incomes o f $ 50,000 a n d w o u l d amount to
$3*500»
T h e m a x i m u m tax i n c r e a s e w o u l d a m ount to 3 p e r c e n t a g e p o i n t s
f o r the largest corporations*
The r e v i s e d rate schedule,
larger corporations,
revenue.
i n c l u d i n g the i n c r e a s e d ra t e o n
w o u l d ra i s e a n e s t i m a t e d $^10 m i l l i o n a d d i t i o n a l
This is a f t e r a l l o w a n c e f o r the r e d u c t i o n i n taxes amount
ing to a b o u t $135 million,
w h i c h W o u l d go l a r g e l y to cor p o r a t i o n s
w i t h incomes of less tha n $100,000,
As I indicated earlier in my statement, corporate profits are
not far from 19^8 record levels*
This high level of profits has
permitted corporations to pay dividends at a record rate and still
retain about $10 billion of earnings, on evew four times the amount
of profits retained in 1929*
T h e b u l k of c o r p o r a t i o n income is c o n c e n t r a t e d i n the v e r y
large corporations.
A s s h o w n in Chart 2, f i v e p e r c e n t o f all
c o r p o rations r e c e i v e ^ 81 p e r c e n t o f t otal c o r p o r a t i o n income.
R ecent
p r o f i t trends f o r corpor a t i o n s o f d i f f e r e n t size r e v e a l a n unm i s t a k
abl e i m provement i n the r e l a t i v e p o s i t i o n o f the l a r g e s t corporations.
These trends a r e s h o w n i n Chart 3*
The strength o f c o r p o r a t e b u s i n e s s is also s h o w n b y the trend
in its w o r k i n g capital p o s i tion.
A t the e n d o f 19^9*
the n e t w o r k i n g
ca p i t a l of all n o n f i n a n c i a l c o r p o r a t i o n s a m o u n t e d to n e a r l y three
times the 1939 figure.
D u r i n g this p e r i o d l i q u i d a s s e t s i n c r e a s e d
fr o m less than o n e-half to thre e - f o u r t h s o f their c u r r e n t liabilities.
- 19 form of graduation was adopted as a "basis for providing reduced rates
to small corporations.
This method results in the present high
“notch rate“ of 53 percent required to "bridge the gap between the
lower rates applicable to incomes under $25*000 and the general rate
on corporations with income of $50,000 or more.
The present rate
schedule is shown in Table 1.
The President urged the elimination of this method in order to
reduce this discriminatory rate and encourage the expansion of
smaller corporations.
The House bill replaces the present complicated and repressive
provision with a simple rate schedule.
The proposed normal tax rate
of 21 percent would be applicable to the profits of all corporations.
In addition, a surtax rate of 20 percent would be levied on profits
in excess of an exemption of $25,000,making a combined normal tax and
surtax of ^1 percent on the amount of profits above $2 5,000.
The changes in rates under the House bill would reduce the taxes
of all corporations with net incomes between $5,000 and about $167,000
and would increase the taxes of corporations with net incomes of more
than this amount.
Over 170,000 or almost half of the taxable
corporations would have their taxes reduced.
This should provide
substantial encouragement to an important segment of our business
population.
Less than 19,000 large corporations, constituting only /
5 percent of all taxable corporations, would be subject to higher
taxes.
The tax liabilities for corporations of different size under
the proposed rates and present law are compared in Table 2 and in
- IS -
made available to stockholders either on a separate statement, on a
AHLUC&tScJ
check stub, or as part of the information on the check itself*
Al
though stockholders would he required to itemize on their returns
the dividends they receive from each corporation and the amount of
tax withheld, they may not he able to attach documentary proof of
their claim for taxes withheld*
This method will he less effective than the one used for tax
withholding on wages and salaries*
Hames and addresses on income
tax returns will not necessarily he identical with those of record
on the corporations’ hooks*
Since the matching of information
-¿¿leJ.
t
uecuaeato aubnirtfred by corporations with lists attached to income
tax returns would he costly and imperfect, I believe it would he
desirable to provide for a stockholder’s receipt (either once a year
or with each dividend payment) similar in form to the wage with
holding receipt.
Mqst taxpayers are already familiar with the opera
tion of the withholding system as it applies to wages and the extension of this system io likelyto cause loss confusion for the average
dividend recipient.
The existence of such receipts would permit
the Government to make prompt refunds with more assurance that they
were due.
It is estimated that the adoption of the withholding provision
of the hill would raise $l60 million in a full year.
Corporation income tax
H.R. 8920 incorporates the first major change in the structure
of corporation income tax rates since
133% * when
the present limited
The available evidence indicates that there is considerable
■underreporting of dividends on individual income tax returns*
A
large part of this unreported dividend income is received irregularly,
in small amounts, and probably is not reported by stockholders through
inadvertence or careless bookkeeping.
Uoncompliance cannot be as
readily uncovered by the Bureau of Internal Revenue under the present
information return system as through a withholding system.
Withholding provides an economical method of securing substan**
tially improved compliance in this area, as it has in the case of
wages and salaries*
Under the system proposed by the House bill, the corporation
would withhold 10 percent from each dividend check*
Stockholders
would receive from the corporation either at the end of the year or
after each dividend payment a statement^in any form convenient
to
the paying corporation, showing the amount of the dividends and the
tax withheld*
The stockholder would report his total dividends,
including amounts withheld, on his tax returns and would claim credit
against his total tax liability for the amount withheld on dividends*
In those instances where the total tax withheld and other prepayments
are larger than the total tax liability, the excess would be refunded*
The dividend withholding system adopted by the House differs
in one important respect from the system now employed for wages and
salaries.
Por the convenience of the corporation, the bill provides
that information on the amount of dividends and tax withheld may be
« 16 Other devices, such as the collapsible corporation
sales of security or commodity futures, allow taxpayers
access to
^
rates of tax levied on long-term capital gains
\
by permitting conversion of short-term gains or ordinary income into
long-term gains,
These devices have been curtailed by the bill«
There are a number of other loophole-closing provisions in the
House bill dealing with specific situations resulting from court
interpretation^ unforeseen business practices, or the development of
tax avoidance techniques.
In most cases the loophole-closing provisions of H.R. 8920
will cope effectively with the tax avoidance
directed and will raise about
JZÏ
million.
which they are
Additional loophole-
clèsing provisions will be recommended at the appropriate time.
The
closing of technical gaps in the law is necessarily a continuing process»
required to preserve the fundamental equities of taxation and especially
important when tax rates have to be kept high.
We cannot expect to
preserve the confidence of taxpayers in our revenue system without
continued vigilance and aggressive action to overcome technical defects
in the law as they develop.
Withholding on dividends
The House adopted a provision which would extend income tax
withholding to dividends at a flat 10-percent rate.
While this
provision was not specifically recommended by the President, it is a
reform which the Department has carefully studied for some time with
a view to determining the rolaitivo advantages it would afford.
- 15 T
Miscellaneous loopholes
The M i l also contains technical provisions restricting the
opportunities for tax avoidance.
The most important of these in terms
of the revenue to he gained is the correction of the present advantage
permitted in the case of sales of hus'&ness property*
When such sales
result in profit, the profit is taxed at the reduced rates allowed
long-term capital gains; when the sales are unprofitable, the loss
is allowed in full aw an offset against ordinary income.
This in
consistency and the r esulting prejudice to the revenue can he
eliminated either hy treating hoth gains and losses as ordinary income
and loss or hy treating them hoth as capital transactions.
The Ways
and Means Committee adopted the latter solution hut failed to act
upon a related recommendation as to the tax treatment of sales of
livestock*
Present court decisions have held livestock regularly culled
from a dairy or breeding herd to be property used in trade or business
and, thus, any gain resulting from their sale to he capital gain.
In light of the regularity with which such livestock is sold, ana
since cattlemen or dairymen are permitted to deduct the cost of
raising the livestock currently from ordinary income, it seems
appropriate to treat the profits therefrom as ordinary income*
The
Treasury Department is continuing its litigation of this important
question.
However, I believe that legislation specifically classify
ing these profits as ordinary income is desirable, regardless of which
solution your Committee adopts as to business property generally.
- ik It should he our minimum goal to assess for those years in which
no tax was paid the amount called for hy the House hill*
The industry
has the required resources and has "been/prepared to pay the amount
in question.
In 19^8, for example, the increase in surplus was about
10 times the tax liability which would he imposed under the House hill
for that year.
favorable.
l*or the smaller companies the ratio is even more
There in «Am
companies have set up
/
r
V
evidence that at least some of the insurance
special tax reserves
to cover t h t a x
liabilities under this legislation which has been under discussion
since 19 Wf»
\
Y
The investment income of life insurance companies now exceeds
$1*7 billion annually.
Their investment assets, now aggregating more
than $60 billion, comprise an important part of the total national
wealth.
Continued inadequate taxation of the life insurance industry
would be detrimental to our economy and to the long-run interest of
the industry itself.
In view of the shortness of time for considering methods of
permanent revision of the life insurance tax provisions this year, I
recognize the need for extending the House-proposed stop-gap formula
to 1950*
Such extension is included in the House bill.
yield $55 million a a t t S P .
This would
Howevefr, I believe that the Congress
should make clear that this is intended -teefee only^a temporary solution,u*fc I urge active consideration of permanent revision.
The
Department is prepared to cooperate with the Congressional committees
in developing a solution to this problem.
- 13 -
The House „Mil also contains provisions for preventing private
exploitation of charitable trusts and foundations for tax avoidance
purposes.
Theflte institutions are privately controlled and do not
obtain financial support from the general publie.
Some of these
were established with a view to securing
unwarranted tax benefits for the founders and members of their
families by enabling them to retain control over business activities.
The provisions of the bill can be expected to reduce the use of
nominally charitable and educational organizations for the purpose of
bestowing tax exemption on private interests.
Increasednaimnee of the tax exemption privilege by nonprofit
organizations and charitable trusts and foundations threatens to make
substantial inroads on the revenue.
While the present revenue loss
is not large, it will increase unless preventive measures are promptly
adopted.
The prospective annual loss, in the absence of effective
remedies, would be in the neighborhood of $100 million.
Life insurance companies
As you know, the President requested the Congress to correct
the present inadequate taxation of life insurance companies on a
permanent basis A» .«» may which would afford equitable treatment and
at the same time safeguard the interests of policy-holders.
He endorsed
steps that had been taken by the Ways and Moans Committee to correct
the situation for a number of recent years*
12
-
and, at the same time, correct the abuse/which
received so much general condemnation.
Business operations of charitable and educational institutions
functions feg-^whieta. theg»
clearly unrelated to
generally would be subjected to the regular
corporation income tar.
This would TffutémmrnmÊfàu organizations now
engaging in^business activities
F 'ie®wiw%*®iial
as the manufacture of food products,
leather goods, vegetable oils, and the diétribution of petroleum
products.
The bill would not tax their income from related activities,
such as the operation of bookstores, dining halls, dormitories, or
experimental farms, customarily carried on by educational and charit
able organizations«,
Income from investments, such as interest,
dividends, most rents and royalties, would also continue to be exempt.
The bill would prevent these organizations from trading on their
tax exemption by arqsfrgiwc with borrowed funds properties -sifctwfcpmHW“subsequently leased to business concerns.
The members of this
Committee are doubtless familiar with such arrangements.
The trans
action is profitable to exempt organizations since, in effect, it
enables them to capitalize their tax exenption.
It is also profit
able to the lessee corporation because it enables it to share in
directly the nonprofit organizations tax exemption.
The House bill
corrects this discrimination against other investors, while safe
guarding the existing exemption of educational and charitable organi
zations on investment income derived entirely from their own funds.
-
11
-
prepared to present to the Committee at your convenience materials
hearing on this question and related matters*
Replacement Revenue for Excise Reductions
The excise reductions would he approximately offset hy replace
ment revenues obtained from closing tax loopholes and other administrative improvements together with the increase in the^income tax*
The internal improvements in the tax structure achieved in the
House hill cover a large number of changes.
These embraee
essential
S
reforms referred to in the President’s tax message and other changes
as well, which on the whole are desirable.
Business operations of charitable and educational organisations
0ur "tax laws have long recognized the principle that
organizations operated for wort hy public purposes should be encouraged
by tax exemption.
I am thoroughly in sympathy with this policy and
fear that it is in danger of being discredited because a minority has
abused it.
The President called this general problem to the attention
of the Congress, and the Treasury Department presented to the Committee
on Ways and Means recommendations for handling it.
The House bill incorporate® the remedies developed cooperatively
by the D§p®rtment and the Staff of the Joint Committee on Internal
Revenue Taxation.
These provisions preserve the tax-free status of
the legitimate activities of educational and charitable organizations
-
10
-
increaseVthe cost of production and hence the prices of practically
every commodity sold in this country.
geographical areas farthest removed from markets or sources of
supply.
A reduction of these taxes will benefit businessmen and
consumers generally.
The reductions in the communications taxes provided in the bill
would aggregate about $125 million.
daBBadiMMMk the reduction«
ésaatadamê^m
reduction^
This is approximately the amount
Wai and Means Committee«
to the Ways
However, the House bill spreads the reduction
long distance telephone use whereas the Presid
confined to long distance communications because these taxes
enter into business costs and create competitive inequities.
The tax on telephone toll messages would be decreased from
25 percent to 20 percent, and the tax on domestic telegraph messages
cut from 25 percent to 10 percent, while the tax on local residential
use w> uld be reduced from 15 to 10 percent
It will be noted that while the House bill includes all of the
items in the Presidents program it also includes a number of others.
These consist principally of a reduction in the admissions tax which
would lose a little ovef $200 million and cuts in a number of
manufacturers* excise^which in total would lose another $200 million.
Moreover, some of the changes contained in the House bill raise the
question of whether the rates adopted in all cases result in the
proper alignment of related taxes.
The Treasury staff will be
9
DETAILED PROVISIONS OP THE BILL
Excise Tax Reduction
The President indicated that reductions are most urgentlyneeded in the excises on transportation of property, transportation
of persons» long distance telephone and telegraph communications
and the four retail excises*
The plan for implementing the President*s recommendations
which I outlined to the Committee on Ways and Means would involve
a net revenue loss of $655 million.
¿/ 6 / 0
in the House hill amount to about
The excise tax reductions made
M l lion and cover some groups
not encompassed hy the President’s proposals*
The reductions in the retail excises on jewelry, fur, luggage,
and toilet preparations from 20 percent to 10 percent would amount
to $2^0 million, including the elimination of the tax on handbags
and a number of miscellaneous items, such as baby oils, powders and
lotions*
These reductions have a high priority because in recent
years the 20-percent rate has
tm sales and
The transportation tax reductions amount toy$lg£? m illio n .
The b i l l would reduce the tax on the transportation o f persons from
15 percent to 10 percent Qad the tax on the transportation o f property
from 3 percent to l j percent.
The President had recommended that
-¿A
the 3f"*?e?cent tax be e n tire ly eliminated<>a>33lg^£i^iiJpu^W(At'.iiii tiiTfiin
- g -
The House hill provides for excise tax reduction on a sub
stantial list of commodities and services of mass consumption
tfaU-
and relieves a number of industries wSilreii are in a relatively
unfavorable position*
By closing serious loopholes in the present law, the bill
would improve both the equity and administration of our tax system
and also produce substantial revenue offsets to the excise tax
reductions*
The revision of the corporation income tax contained in the
bill would recoup most of the remaining revenue lost from excise
reduction at the same time that it reduces taxes and eliminates the
inequitable "notch11 provision for the benefit of smaller corporations*
The principal deficiency of the House bill is its failure to
add as much strength to the revenue system as the President recom
mended,
It does not reduce the present excessive depletion allowances
granted oil and mineral producers under the income tax but rather
extends these allowances to new areas.
Moreover, it fails to
revise and strengthen the structure of the estate and gift taxes*
In addition, the bill contains some provisions which would
create new inequities.
I will call your attention to these in my
discussion of the detailed provisions of the bill, to which I now
turn.
.
A-'ijy
* 7 tax and partly from the estate and gift taxes, which now are not
making nm ^eeniat» contribution to the Government's revenues*
■Recent events have underscored the importance of the objectives
of the President's program*
Improvement in the equity and effective
ness of the tax structure is especially necessary at a time when
taxes must remain high*
Taxpayers bearing disproportionate and
discriminatory burdens must be relieved.
Pavored groups must not
be provided with unwarranted opportunity to escape taxes intended
to apply generally.
The Committee on Ways and Means devoted more than four months
to an intensive study of the President's program and gave most
careful consideration to the separate proposals*
other potential
It also explored
revisions in the tax system and developed a
revenue bill which goes a long way towards meeting the objectives
set by the President.
When important tax revisions are undertaken,
/ it is to be expected that the shape of complex legislation covering'**7
a wide variety of problems will not accord precisely with any single
conception of the desired objectives*
of the democratic legislative process.
Compromise is characteristic
- 6THE PRESIDENT1S -PROGRAM
The Presidents program has a three-fold purpose;
improve the fairness of the tax system, (2) to bring in
(1) to
some
additional revenue, and (3) to strengthen the economy.
In submitting this program to the Congress, the President
recognized that in certain limited areas tax reduction was desir
able.
He proposed a conservative excise reduction program which
balanced the most urgent needs for relief against the constraints
imposed by an unbalanced budget during prosperity.
The excise taxes are still at substantially their wartime
levels and their revision to better conform with present-day
competitive business conditions is overdue.
Judicious reductions
in these taxes can make an important contribution to an improved
revenue system.
Not only will the tax system be made more equitable
for consumers but the changes will aid employment and sales in «the
industries affected.
Over the long run we should aim to reduce the
role of excises in the tax system.
In view of our budgetary situation, however, the President
recommended the closing of an accumulation of tax loopholes as a
source of replacement revenue for the excise tax reductions.
In addition, the President recommended that a moderate amount
of additional revenue be obtained partly from the corporation income
- 5 in certain areas in the form of lowered excise taxes on various
products and services still taxed at wartime rates,a»d^lower taxes
for smaller corporations, together with various measures which
will he of direct assistance to business operations —
for example,
1,1a, lihsiriil 1iimli1 ll""ir provisions permitting the business losses
of one year to be deducted from the taxable income of other years.
Che proposals which you are considering do not provide, however,
for increased revenue, although the need for keeping the finances
of the federal Government in a sound condition is even greater now
than it was at the beginning of the year when the President made
his tax recommendations,to the 01st Congress*
I urge the members of this Committee, therefore, to review
fully the proposals for improving our revenue system outlined in
the President’s program, which I submitted in detail to the
Committee on Ways and Means of the House of Representatives on
Pebruary 3» 1950*
I turn now to a discussion of the House bill, first, in the
light of the President’s program and, second, with respect to its
detailed provisions.
f The federal deficit for the fiscal year 1950 amounted to
$3.1 billion and is estimated in the President's budget message
of January at $5*1 billion for the fiscal year 19 5 1*
not take active measures to reduce
^
we do
deficit/auring periods
of high business activity, we cannot hope to find our economic
defenses at full strength to meet emergencies —
either in the
domestic field, or on the international front.
The financial strength of our government, as you know, depends
in part on its income.
It depends on income derived from a revenue
system which is fair and equitable as between taxpayers, adequate
to meet governmental requirements, and of sufficient size during
prosperous times to make some repayment on debts incurred in the
past.
Because of the size and importance of the federal debt and
of federal financial operations, it is important also to make
certain that our federal revenue system does not hamper business
and tradej but ¿ 6 far as possible acts to stimulate it.
The revenue proposals embodied in the bill before you make
progress toward these goals, which were outlined in the President's
tax message.
But the House bill does not go the whole way.
The
bill in its present form has the merit of making improvements in
the equity of our tax system.
It provides stimulation to business
- 3 during 1950 at a very high level#
Excluding the special insurance
dividend to veterans, personal incomes this year are well above the
corresponding period a year ago, and not far from the record figures
of 19 ^8.
'1U-
Sis ^arni B g ^ eeitien of business concerns, likewise, hae continued
to be exceptionally favorable.
Corporate profits before taxes have
been advancing steadily throughout the past 12 months, and are
estimated for the first half of 1950 at an annual rate of a little
under $33 billion —
almost $5 billion higher than a year ago, and
not far from the record annual total of approximately $35 billion
in 19^8#
You may be interested to note, in addition, that the
present level of corporation profits, on an annual basis, is more
than three times as high as the prewar record level of $10 billion
in 1929.
Under these conditions of exceptional prosperity for both
individuals and business concerns, we cannot justify less than a
maximum effort jiafc-eesfey to meet current expenditures but-also to
further the program for reducing our outstanding debt#
This
principle is the foundation of our financial strength*
With
relations between nations in a troubled state, we cannot afford
a short-range approach to the vital matter of the financial sound
ness of the United States Government#
-
2
-
times to meet the necessary expenditures of the Government and to
leave" some surplus for debt reduction«
This was the goal
expressed by the President in his tax message to the Congress
last January.
It is the position I have taken on many occasions
in appearances before committees of the Congress.
It is the only
position consistent with my responsibility to the American people.
In the five months since I appeared before the Committee on
Ways and Means of the House of Representatives in support of the
Presidents tax program, it has become increasingly apparent that
1950 will be one of the most productive business years in our
history, in terms of the actual output of goods and services.
During recent months there has been growing recognition that the
strong upturn in business this year is something more than a
temporary inventory replenishment, as some had characterized it
earlier.
It is more than a mere rebound from the lower production
levels of 19^9*
There is no longer reason to question that the
business improvements this spring and summer represent an important
forward movement in our national economy.
The strength of this movement, in fact, has been so widely,
recognized in recent weeks that I shall not take your time on this
occasion to go into the details of the business situation.
I
should like to stress, however, that personal and business incomes —
the most important element/in our revenue potential —
have continued
STATEi-CENT OP SECRETARY SNYDER BEFORE
THE SENATE FINANCE COMMITTEE,
JULY 5, 1950, /o*»7.
*5
I am pleased to have an opportunity to appear Before the
members of this Committee as you Begin consideration of the tax
revision Bill, H.R. 8920» which the House of Representatives
passed on June 29«
I head with great interest, Mr* Chairman, your statement
that the Committee decided to proceed with tax legislation in
the full knowledge that present plans may need to Be altered By
developments in Korea.
I am glad that the Committee has decided
to prepare a Bill for action with the understanding that it could
Be halted if conditions later indicate that it \?ould Be unwise
to go through with the legislation.
I am in accord with this
view of the Committee and will present my testimony on the Basis
of this understanding.
In strengthening our resources for possible eventualities,
improvement in the Governments fiscal position is a Basic
requisite of national preparedness.
At the outset I should like'to make it clear that the position
which I have taken on other occasions with respect to our revenue
system has not changed.
It is my conviction that our general objective
must Be a tax system which yields sufficient revenue during prosperous
TREASURY DEPARTMENT
Washington
STATEMENT OE SECRETARY SNYDER BEFORE THE
SENATE FINANCE COMMITTEE
July 5 * 1950
10 A. M.
I am pleased to have an opportunity to appear “before the members
of this Committee as you begin consideration of the tax revision bill,
H*R. S920, which the House of Representatives passed on June 29.
I read with great interest, Mr. Chairman, your statement that the
Committee decided to proceed with tax legislation in the full knowledge
that present plans may need to be altered by developments in Korea. I
am glad that the Committee has decided to prepare a bill for action
with the understanding that it could be halted if conditions later
indicate that it would be unwise to go through with the legislation.
I am in accord with this view of the Committee and will present my
testimony on the basis of this understanding.
In strengthening our resources for possible eventualities,
improvement in the Government1s fiscal position is a basic requisite
of national preparedness.
At the outset I should like to make it clear that the position
which I have taken on other occasions with respect to our revenue
system has not changed. It is my conviction that our general objective
must be a tax system which yields sufficient revenue during prosperous
times to meet the necessary expenditures of the Government and to
leave some surplus for debt reduction. This was the goal expressed
by the President in his tax message to the Congress last January.
It is the position I have taken on many occasions in appearances
before committees of the Congress. It is the only position consistent
with my responsibility to the American people.
In the five months since I appeared before the Committee on Ways
and Means of the House of Representatives in support of the Presidents
tax program, it has become increasingly apparent that 1950 will be one
of the most productive business years in our history, in terms of the
actual output of goods and services. During recent months there has
been growing recognition that the strong upturn in business this year
is something more than a temporary inventory replenishment, as some
had characterized it earlier. It is more than a mere rebound from
the lower production levels of 19^9 . There is no longer reason to
question that the business improvements this spring and summer repre
sent an important forward movement in our national economy.
S-2386
i
- 2 The strength of this movement, in fact, has been so widely
recognized in recent weeks that I shall not take your time on this
occasion to go into the details of the business situation» I should
like to stress, however, that personal and business incomes *— the
most important elements in our revenue potential — have continued
during 1950 &t a- very high level. Excluding the special insurance
dividend to veterans, personal incomes this year are well above the
corresponding period a year ago, and not far from the record figures
of 19^8.
The earnings of business concerns, likevri.se, have continued to
be exceptionally favorable. Corporate profits before taxes have
been advancing steadily throughout the past 12 months, and are
estimated for the first half of 1950 at an annual rate of a little
under $33 billion — almost $5 billion higher than a year ago, and
not far from the record annual total of approximately $35 billion
in 194s. you may be interested to note, in addition, that the
present level of corporation profits, on an annual basis, is more
than three times as high as the prewar record level of $10 billion
in 1929.
Under these conditions of exceptional prosperity for both
individuals and business concerns, we cannot justify less than a
maximum effort to meet current expenditures and to further the program
for reducing our outstanding debt. This principle is the foundation
of our financial strength. With relations between nations in a troubled
state, we cannot afford a short-range approach to the vital matter of
the financial soundness of the United States Government.
The Federal deficit for the fiscal year 1950 amounted to $3.1
billion and is estimated in the President’s budget message of January
at $5*1 billion for the fiscal year 1951* If we do not take active
measures to reduce deficits during periods of high business activity,
we cannot hope to find our economic defenses at full strength to meet
emergencies — either in the domestic field, or on the international
front.
The financial strength of our government, as you know, depends in
part on its income. It depends on income derived from a revenue
system which is fair and equitable as between taxpayers, adequate to
meet governmental requirements, and of sufficient size during
prosperous times to make some repayment on debts incurred in the past.
Because of the size and importance of the Federal debt and of Federal
financial operations, it is important also to make certain that our
Federal revenue system does not hamper business and trade, but as far
as possible acts to stimulate it.
-3The revenue proposals embodied in the bill before you make
progress toward these goals, which were outlined in the Presidents
tax message. But the House bill does not go the whole way. The
bill in its present form has the merit of making improvements in the
equity of our tax system. It provides stimulation to business in
certain areas in the form of lowered excise taxes on various products
and services still taxed at wartime rates. It also provides lower
taxes for smaller corporations, together with various measures which
will be of direct assistance to business operations — for example,
more liberal provisions permitting the business losses of one year
to be deducted from the taxable income of other years. The proposals
which you are considering do not provide, however, for increased
revenue, although the need for keeping the finances of the Federal
Government in a sound condition is even greater now than it was at
the beginning of the year when the President made his tax recommendations.
I urge the members of this Committee, therefore, to review fully
the proposals for improving our revenue system outlined in the
Presidents program, which I submitted in detail to the Committee on
Ways and Means of the House of Representatives on February 3« 1950*
I turn now to a discussion of the House bill, first, in the
light of the President's program and, second, with respect to its
detailed provisions.
THE PRESIDENT'S PROGRAM
The President's program has a three-fold purpose: (1) to
improve the fairness of the tax system, (2) to bring in some
additional revenue, and (3) to strengthen the economy.
In submitting this program to the Congress, the President
recognized that in certain limited areas tax reduction was desirable.
He proposed a conservative excise reduction program which balanced
the most urgent needs for relief against the constraints imposed by
an unbalanced budget during prosperity.
The excise taxes are still at substantially their wartime
levels and their revision to better conform with present-day competi
tive business conditions is overdue. Judicious reductions in these
taxes can make an important contribution to an improved revenue
system. Not only will the tax system be made more equitable for
consumers but the changes will aid employment and sales in the
industries affected. Over the long run we should aim to reduce the
role of excises in the tax system.
ml
- uIn view of our budgetary situation, however, the President
recommended the closing of an accumulation of tax loopholes as a
source of replacement revenue for the excise tax reductions.
In addition, the President recommended that a moderate amount
of new revenue he obtained partly from the corporation income tax and
partly from the estate and gift taxes, which now are not making a
proportionate contribution to the Governments revenues.
Recent events have underscored the importance of the objectives
of the President’s program. Improvement in the equity and effectiveness
of the tax structure is especially necessary at a time when taxes must
remain high. Taxpayers bearing disproportionate and discriminatory
burdens must be relieved, Favored groups must not be provided with
unwarranted opportunity to escape taxes intended to apply generally.
The Committee on Ways and Means devoted more than four months to
an intensive study of the President’s program and gave most careful
consideration to the separate proposals. It also explored other
potential revisions in the tax system and developed a revenue bill
which goes a long way towards meeting the objectives set by the
President. When important tax revisions are undertaken, it is to be
expected that the shape of complex legislation covering a wide
variety of problems will not accord precisely with any single conception
of the desired objectives. Compromise is characteristic of the
democratic legislative process.
The House bill provides for excise tax reduction on a substantial
list of commodities and services of mass consumption and relieves a
number of industries that are in a relatively unfavorable position.
By closing serious loopholes in the present law, the bill would
improve both the equity and administration of our tax system and also
produce substantial revenue offsets to the excise tax reductions.
The revision of the corporation income tax contained in the bill
would recoup most of the remaining revenue lost from excise tax
reduction at the same time that it reduces taxes and eliminates the
inequitable "notch” provision for the benefit of smaller corporations.
The principal deficiency of the House bill is its failure to
add as much strength to the revenue system as the President recommended.
It does not reduce the present excessive depletion allowances granted
oil and mineral producers under the income tax but rather extends
these allowances to new areas. Moreover, it fails to revise and
strengthen the structure of the estate and gift taxes.
- 5 In addition, the hill contains some provisions which would create
new inequities* I will call your attention to these in my discussion
of the detailed provisions of the hill, to which I now turn.
DETAILED PROVISIONS OP THE BILL
Excise Tax Reduction
The President indicated that reductions are most urgently needed
in the excises on transportation of property* transportation of persons,
long distance telephone and telegraph communications and the four retail
excises*
The p la n f o r im plem enting th e P r e s id e n t ’ s recommendations which
I o u tlin e d to th e Committee on Ways and Means would in v o lv e a net
revenue lo s s o f $655 m illio n * The e x c is e t a x r e d u c tio n s made in the
House h i l l amount to $1,010 m illio n and cover some groups not
encompassed hy th e P r e s id e n t ’ s p r o p o s a ls .
The reductions in the retail excises on jewelry, fur, luggage,
and toilet preparations from 20 percent to 10 percent would amount to
$2U0 million, including the elimination of the tax on handbags and a
number of miscellaneous items, such as baby oils, powders and lotions*
These reductions have a high priority because in recent years the
20-percent rate has depressed sales and employment in the taxed
industries*
The transportation tax reductions amount to about $230 million.
The bill would reduce the tax on transportation of persons from 15
percent to 10 percent and the tax on the transportation of property
from 3 percent to lj percent. The President had recommended that the
3-percent tax be entirely eliminated, because it increases the cost of
production and hence the prices of practically every commodity sold in
this country. The transportation taxes discriminate against those
geographical areas farthest removed from markets or sources of supply,
A re d u ctio n o f th e se ta x e s w i l l b e n e fit businessm en and consumers
g e n e r a lly .
The reductions in the communications taxes provided in the bill
would aggregate about $125 million.
This is approximately the amount
of the reductions proposed to the Ways and Means Committee* However,
the House bill spreads the reduction over both local and long distance
telephone use whereas the President recommended that it be confined to
long distance communications because these taxes enter into business
costs and create competitive inequities.
VPs
- 6 The tax on telephone
25 percent to 20 percent,
cut from 25 percent to 10
use would he reduced from
toll Messages would he decreased from
and the tax on domestic telegraph messages
percent, while the tax on local residential
15 to 10 percent*
It will he noted that while the House hill includes all of the
items in the President's program it also includes a number of others.
These consist principally of a reduction in the admissions tax which
would lose a little over $200 million and c u ts in a number of
manufacturers1 excises which in t o t a l would lo s e another $200 million.
Moreover, some of the changes c o n ta in e d in the House hill raise the
question of whether the rates adopted in all cases r e s u lt in the
proper alignment of related taxes. The Treasury staff will he
prepared to present to the Committee at your convenience materials
hearing on this question and related matters.
Replacement Revenue for Excise Reductions
The excise reductions would he approximately offset hy
replacement revenuesohtained from closing tax loopholes and other
administrative improvements together with the increase in the
corporation Income tax.
The internal improvements in the tax structure achieved in the
House hill cover a large number of changes. These embrace essential
reforms referred to in the President’s tax message and other changes
as well, which on the whole are desirable.
Business operations of charitable and educational organizations
Our tax laws have long recognized the principle that organizations
operated for worthy public purposes should he encouraged hy tax exemption.
I am thoroughly in sympathy with this policy and fear that it is in
danger of being discredited because a minority has abused it. The
President called this general problem to the attention of the Congress,
and the Treasury Department presented to the Committee on Ways and Means
recommendations for handling it.
The House hill incorporated the remedies developed cooperatively
hy the Department and the Staff of the Joint Committee on Internal
Revenue Taxation. These provisions preserve the tax-free status of
the legitimate activities of educational and charitable organizations
and, at the same time, correct the abuses which properly have received
so much general condemnation*
ipj-
- 7B u sin e ss o p e ra tio n s o f c h a r it a b le and e d u c a tio n a l in s t i t u t i o n s
c l e a r l y u n r e la te d to t h e ir exempt fu n c tio n s g e n e r a lly would he su b je c te d
to the r e g u la r c o rp o ra tio n income t a x . T h is would a p p ly to o r g a n iz a tio n s
now en gagin g in such u n r e la te d b u sin e ss a c t i v i t i e s as the m anufacture o f
fo o d p r o d u c ts , le a th e r goods9 v e g e ta b le o i l s , and the d is t r ib u t io n o f
petroleum p r o d u c ts . The b i l l would not t a x t h e ir income from r e la t e d
a c t i v i t i e s , such as the o p e r a tio n o f b o o k s to r e s , d in in g h a l l s , dormi
t o r i e s , or exp erim e n tal fa rm s, c u sto m a rily c a r r ie d on by e d u c a tio n a l
and c h a r it a b le o r g a n iz a t io n s . Income from in v e stm e n ts, such as i n t e r e s t ,
d iv id e n d s , most r e n ts and r o y a l t i e s , would a ls o con tin u e to be exem pt.
The b i l l would p rev en t th ese o r g a n iz a tio n s from tr a d in g on t h e ir
ta x exem ption where th ey a cq u ire w ith borrowed funds p r o p e r tie s subse
q u e n tly le a s e d to b u sin e ss co n ce rn s. The members o f t h i s Committee
are d o u b tle ss f a m ilia r w ith such arrangem ents* The tr a n s a c tio n i s
p r o f it a b le to exempt o r g a n iz a tio n s s in c e , in e f f e c t , i t en ab le s them
to c a p i t a l i z e t h e ir ta x exem ption* I t i s a ls o p r o f it a b le to the
le s s e e c o r p o r a tio n because i t en ab les i t to share i n d i r e c t l y the
n o n p ro fit o r g a n iz a t io n ^ ta x exem ption. The House b i l l c o r r e c ts t h is
d is c r im in a tio n a g a in s t o th e r in v e s t o r s , w h ile s a fe g u a rd in g the e x is t in g
exem ption o f e d u c a tio n a l and c h a r ita b le o r g a n iz a tio n s on investm ent
income d e riv e d e n t i r e l y from t h e ir own fu n d s .
The House b i l l a ls o c o n ta in s p r o v is io n s fo r p r e v e n tin g p r iv a t e
e x p lo i t a t i o n o f c h a r it a b le t r u s t s and fo u n d a tio n s fo r ta x avoid ance
p u rp o se s. The in s t i t u t i o n s a f f e c t e d are p r iv a t e l y c o n t r o lle d and do
not o b ta in f i n a n c i a l support from the g e n e r a l p u b l i c . Some o f them
were e s t a b lis h e d w ith a view to se cu rin g u n in ten d ed ta x b e n e f it s f o r the
founders and members o f t h e ir fa m ilie s by e n a b lin g them to r e t a in c o n tr o l
over b u sin e ss a c t i v i t i e s . The p r o v is io n s o f the b i l l can be exp ected
to reduce the use o f n o m in ally c h a r ita b le and e d u c a tio n a l o r g a n iz a tio n s
fo r the purpose o f b estow ing ta x exem ption on p r iv a t e i n t e r e s t s .
In c re a se d e x te n s io n o f the tax-exem p tio n p r iv il e g e by n o n p r o fit
o r g a n iz a tio n s and c h a r it a b le t r u s t s and fo u n d a tio n s th re a te n s to make
s u b s t a n t ia l in ro ad s on the reven u e. While the p re se n t revenue lo s s
i s not l a r g e , i t w i l l in c r e a s e u n le ss p r e v e n tiv e measures are prom ptly
adop ted. The p r o s p e c tiv e annual l o s s , in th e absence o f e ffe c t iv e rem ed ies, would be in the neighborhood o f $100 m i l l i o n .
L i f e in su ran ce companies
As you know, the P r e s id e n t req u e sted the Congress to c o r r e c t the
p re se n t in ad eq u ate t a x a t io n o f l i f e in su ran ce companies on a perma
nent b a s is which would a f f o r d e q u ita b le treatm ent and a t the same
time sa fe g u a rd th e in t e r e s t s o f p o lic y - h o ld e r s .
He endorsed
ste p s th a t had been taken by the Ways and Means Committee to c o r r e c t
the s i t u a t i o n fo r a number o f re c e n t y e a r s .
- g It should he our minimum goal to assess for those years in which
no tax was paid the amount called for by the House bill« The industry
has the required resources and has been prepared to pay the amount in
question. In 19^8» for example, the increase in surplus was about
10 times the tax liability which would be imposed under the House bill
for that year. For the smaller companies the ratio is even more
favorable. There is evidence that at least some of the insurance
companies have set up special tax reserves to cover the tax liabilities
under this legislation which has been under discussion since 19^7 *
The. investment income of life insurance companies now exceeds
$1.7 billion annually. Their investment assets* now aggregating more
than $60 billion, comprise an important part of the total national
wealth. Continued inadequate taxation of the life insurance industry
would be detrimental to our economy and to the long-run interest of
the industry itself.
In view of the shortness of time for considering methods of
permanent revision of the life insurance tax provisions this year* I
recognize the need for extending the House-proposed stop-gap formula
to 1950* Such extension is included in the House bill. This would
yield $55 million. However* I believe that the Congress should make
clear that this is intended only as a temporary solution. I urge
active consideration of permanent revision. The Department is prepared
to cooperate with the Congressional committees in developing a solution
to this problem.
Miscellaneous loopholes
The bill also contains technical provisions restricting the
opportunities for tax avoidance. The most important of these in terms
of the revenue to be gained is the correction of the present advantage
permitted in the case of sales of business property. When such sales
result in profit, the profit is taxed at the reduced rates allowed
long-term capital gains; when the sales are unprofitable, the loss
is allowed in full as an offset against ordinary income. This incon
sistency and the resulting prejudice to the revenue can be eliminated
either by treating both gains and losses as ordinary income and loss
or by treating them both as capital transactions. The Ways and Means
Committee adopted the latter solution but failed to act upon a related
recommendation as to the tax treatment of sales of livestock;
Present court decisions have held livestock regularly culled from
a dairy or breeding herd to be depreciable property used in trade or
business and* thus, any gain resulting from their sale to be capital gain;
In light of the regularity with which such livestock is sold, and since
cattlemen or dairymen are permitted to deduct the cost of raising the
livestock currently from ordinary income, it seems appropriate to treat
- 9 the profits therefrom as ordinary income» The Treasury Department is con
tinuing its litigation of this important question. However, I "believe that
legislation specifically classifying these profits as ordinary income is
desirable» regardless of which solution your Committee adopts as to busi
ness property generally.
Other devices» such as the collapsible corporation and short sales
of security or commodity futures» allow taxpayers unintended access to
the more favorable rates of tax levied on long-term capital gains by
permitting conversion of short-term gains or ordinary income into long
term gains« These devices have been curtailed by the bill.
There are a number of other loophole-closing provisions in the House
bill dealing with specific situations resulting from court interpretations,
unforeseen business practices, or the development of tax avoidance tech
niques.
In most cases the loophole-closing provisions of H.R, €>920 will
cope effectively with the tax avoidance against which they are directed
and will raise about $125 million» Additional loophole— closing provisions
will be recommended at the appropriate time. The closing of technical
gaps in the law is necessarily a continuing process, required to preserve
the fundamental equities of taxation and especially important when tax
rates have to be kept high, We cannot expect to preserve the confidence
of taxpayers in our revenue system without continued vigilance and aggres
sive action to overcome technical defects in the law as they develop.
Withholding on dividends
The House adopted a provision which would extend income tax with
holding to dividends at a flat 10—percent rate. While this provision
was not specifically recommended by the President, it is a reform which
the Department has carefully studied for some time with a view to deter
mining the advantages it would afford./
The available evidence indicates that there is considerable under
reporting of dividends on individual income tax returns« A large part
of this unreported dividend income is received irregularly, in small
amounts, and probably is not reported by stockholders through inadvert
ence or careless bookkeeping, Woncompliance cannot be as readily uncovered
by the Bureau of Internal Revenue under the present information return
system as through a withholding system.
Withholding provides an economical method of securing substantially
improved compliance in this area, as it has in the case of wages and
salaries.
-
10
-
Under the system proposed by the House bill» the corporation would
withhold 10 percent from each dividend check. Stockholders would receive
from the corporation either at the end of the year or after each dividend
payment a statement, in any form convenient to the paying corporation,
showing the amount of the dividends and the tax withheld. The stock
holder would report his total dividends, including amounts withheld, on
his tax returns and would claim credit against his total tax liability
for the amount withheld on dividends. In those instances where the total
tax withheld and other prepayments are larger than the total tax liability,
the excess would be refunded.
The dividend withholding system adopted by the House differs in
one important respect from the system now employed for wages and salaries.
For the convenience of the corporation, the bill provides that information
on the amount of dividends and tax withheld may be made available to stock
holders either on a separate statement, on a check voucher, or as part of
the information on the check itself. Although stockholders would be
required to itemize on their returns the dividends they receive from each
corporation and the amount of tax withheld, they may not be able to attach
documentary proof of their claim for taxes withheld.
This method will be less effective than the one used for tax with
holding on wages and salaries. Names and addresses on income tax returns
will not necessarily be identical with those of record on the corporations
books. Since the matching of information forms filed by corporations with
the lists attached to individual income tax returns would be costly and
imperfect, I believe it would be desirable to provide for a stockholder’s
receipt (either once a year or with each dividend payment) similar in form
to the wage withholding receipt. Most taxpayers are already familiar with
the operation of the withholding system as it applies to wages and the
extension of this system would cause no confusion for the average dividend
recipient. The existence of such receipts would permit the Government to
make prompt refunds with more assurance that they were due.
It is estimated that the adoption of the withholding provision of the
bill would raise $160 million in a full year.
Corporation income tax
H.K. 8920 incorporates the first major change in the structure of
poration income tax rates since 193^, when tne present limited form of
graduation was adopted as a basis for providing reduced rates to small
porations. This method results in the present high "notch rate" of 53
cent required to bridge the gap between the lower rates applicable to
incomes under $25,000 and the general rate on corporations with income
$50,000 or more. The present rate schedule is shown in Table 1.
cor
cor
per
of
►
-
11
-
The President urged the elimination of this method in order to reduce
this discriminatory rate and encourage the expansion of smaller corporations*
The House bill replaces the present complicated and repressive provision
with a simple rate schedule. The proposed normal tax rate of 21 percent
would be applicable to the profits of all corporations* In addition* a
surtax rate of 20 percent would be levied on prodits in excess of an ex
emption of $2 5»000* making a combined normal tax and surtax of Ul percent
on the amount of profits above $2 5*000.
The changes in rates under the House bill would reduce the taxes of
all corporations with net incomes between $5»000 and about $167*000 and
would increase the taxes of corporations with net incomes of more than
this amount. Over 170*000 or almost half of the taxable corporations
would have their taxes reduced. This should provide substantial encour
agement to an important segment of our business population, less than
19*000 large corporations* constituting only 5 percent of all taxable
corporations* would be subject to higher taxes. The tax liabilities for
corporations of different size under the proposed rates and present law
are compared in Table 2 and in Chart 1. The maximum tax reduction would
occur at the top of the present ttnotchn area on net incomes of $50,000
and would amount to $3*500. The maximum tax increase would amount to
3 percentage points for the largest corporations.
The revised rate schedule, including the increased rate on larger
corporations* would raise an estimated $1*10 million additional revenue.
This is after allowance for the reduction in taxes amounting to about
$135 million* which would go largely to corporations with incomes of less
than $100,000*
As I indicated earlier in my statement, corporate profits are not
far from 19*+8 record levels. This high level of profits has permitted
corporations to pay dividends at a record rate and still retain about
$10 billion of earnings, or four times the amount of profits retained in
1929*
7.
■,
The bulk of corporation income is concentrated in the very large cor
porations. As shown in Chart 2* five percent of all corporations receive
SI percent of total corporation income. Recent profit trends for corpo
rations of different size reveal an unmistakable improvement in the relative
position of the largest corporations. These trends are shown in Chart 3«
The strength of corporate business is also shown by the trend in its
working capital position. At the end of 19^9* the net working capital of
all nonfinancial corporations amounted to nearly three times the 1939
figure. During this period liquid assets increased from less than one-half
to three-fourths of their current liabilities. At the end of 19^+9* corpo
rations held more than $Ho billion in cash and U. S. Government securities.
-
12
-
The President *s recommendation for revision of the treatment of business
losses is also carried out in the bill« Present law permits taxpayers to
offset their losses in any given year against profits in the two prior years
and to carry forward any remaining loss to be offset against income in the
two succeeding years« The proposed revision would increase the carryforward
from two to five years and would reduce the carrybacks to one year« This
would provide a total period of seven years in which losses might be offset
against profits as compared with the present 5*^7eer period and thus reduce
the tax advantage now enjoyed by stable as compared with unstable businesses«
More liberal loss offsets would be of particular benefit to new and
small business and would promote their expansion« New concerns often ex
perience losses or irregular earnings in their early history, since the
development of a new business generally involves large initial costs which
cannot be recovered immediately. Small business in general encounters
great difficulties in withstanding the financial strain of hard times.
Large firms on the other hand have a greater opportunity to average their
own incomes because they are more likely to have diversified products and
markets* Losses sustained from one activity or locality can often be offset
in the same year against income from other sources.
The relief provided for small business by the revisions in the cor
porate rate structure and in the loss offsets accords with our objective
to foster the development of this segment of the economy.
Summary of Revenue Increases
The revenue-raising provisions of the bill would yield $890 million
in a full year of operation and about $525 million in the fiscal year
19 5 1» as follows:
Fiscal
Full
year
year
(in millions
Corporation tax increase
Life insurance companies
Charitable and educational institutions
Miscellaneous loopholes.
Withholding on dividends
Reduction in interest rate on tax refunds
Total
$UlO
55
100
I25
I60
$l60
125
IO9
127
ho
_5
$890
$526
-13 -
This total falls short of matching the excise redactions by $120
million on a fall-year "basis* You will note that the total inclades
$4o million resalting from the redaction in the interest rate on tax
refonds* In my view this cannot be construed as an improvement in the
tax structure or an administrative refOîsi* and is an inequitable
method of meeting our revenue requirements*
The figures I have given indicate the revenue that would be
raised before allowing for certain provisions in the bill involving
the loss of approximately $50 million. Ï shall return to these
undesirable provisions later in my statement.
Exclusive of increased fiscal year collections which would result
from the system of speeding up corporation income tax payments adopted
by the House, the bill as it stands involves an estimated revenue loss
of about $170 million.
Speed-up of Corporation Tax Collections
The provision of the bill changing the system for installment pay
ment of corporation income tax liabilities would substantially increase
collections over a five-year period beginning with the fiscal year 1951*
This change does not alter the tax liabilities of corporations but
merely the timing of the tax payments.
The objective of the provision is to reduce the lag in corporate
tax payments. At present, two-thirds of all taxable corporations,
accounting for 97 percent of total corporation income tax liability,
pay their taxes in quarterly installments during the year following the
close of the taxable year* On the averae, the corporation income tax
is now collected seven months after the close of the taxable year. When
this provision becomes fully effective five years hence, this lag will
be reduced to an average of four months.
Operation of the plan is shown in Table 3 and Chart U. It would
gradually replace the present four-quarter payment privilege by a
system providing for payment of the full tax liability in the first two
quarters following the end of the taxable year. However, this would
be accomplished over a five-year period during which each year the tax
paid in the third and fourth quarters would be reduced and the tax paid
in the first and second quarters correspondingly increased. When the
two-installment system is fully effective, one-half the corporation
income tax will be collected six months earlier than at present.
The gradual transition to the more current system provided for in
the "bill is desirable to prevent impairment of the working capital
position of corporations that have not set aside funds to meet their
accrued tax liabilities* Larger corporations generally fund their tax
liability currently by baying tax anticipation notes or marketable
securities as profits are earned« Accelerated tax payment will not
affect the operations of these corporations except to deprive them of
part of the small interest income from their tax funds* The five-year
transition should be sufficient to permit smaller corporations to
adjust their payments without hardship* Moreover, the Commissioner of
Internal Revenue can make extensions of time if it should become
necessary.
At the present level of corporate profits and under the rates of
the House bill, this speed-up in collection will increase fiscal
year 1951 tax receipts by nearly $800 million and receipts in each of
the four succeeding fiscal years by a somewhat larger amount*
This provision, in my opinion, is a desirable tax reform* It
will bring corporations closer to the current payment basis which
applies to business income of individuals, and will make corporation
income tax revenue more promptly responsive to changes in tax rates
or economic conditions* However, I should like to emphasize that the
speed-up in corporate tax payments is not a revenue-raising measure
and therefore cannot be regarded as an offset to the revenue lost
from excise tax reduction*
Revisions in the Bill
Some provisions of the bill conflict with sound taxation, and I
urge you to consider their modification or deletion. These include
the further expansion of already excessive percentage depletion allow
ances and revisions affecting the estate tax.
Percentage depletion
The most objectionable provision of the House bill is the exten
sion of percentage depletion to some 20 types of nonmetallic minerals
not covered by present law and the increase in the rate of percentage
depletion for coal from 5 to 10 percent of gross income.
This action represents a continuation of the movement for expand
ing depletion allowances which gathered momentum under the guise of
wartime necessity. In 19^2, when percentage depletion was first
granted to ball and sagger clay, producers of other clays complained
- 15 -
of discrimination and inequitable taxation* So in later years per
centage depletion was extended to bentonite and china clay. The
House bill i«ow proposes further extension to refractory clays,
fuller's earth, fire clays, and brick and tile clays* Such extension
would give rise to further claim« of dieorJMaation by producers of
miscellaneous clays and in turn by producers of synthetic and reworked
materials competitive with clay.
The basis for these allowances is so vague that it can be readily
applied to practically every situation. Each industry, for example,
can argue that it is essential to national defense. The last war
showed conclusively that practically every industry is essential to
an economy devoted to war. After one mineral has been given favorable
treatment, no end is in sight to the list of minerals that can plead
for inclusion on the ground of competitive inequity. The special
concessions now in the law create serious competitive discriminations
because of unreasonable disparities in the percentage depletion rates.
There is even greater discrimination between the groups favored \<?ith
concessions and other industries and classes of taxpayers not so
favored. In consequence, persistent pressure may be expected to
obtain equality by raising the lower rates to the higher level and by
extending benefits to other industry areas. The bill as passed by the
House of Representatives goes so far as to concede special tax relief
to those who strip hillsides of gravel. This could be justified
because similar treatment is to be given to those who scoop sand off
the seashore.
Because each group feels that special tax exemption can be
equally justified in its case as a means of fostering the growth of
that particular industry, the result is the development of a system
of concessions which is not only incongruous in a sound and equitable
tax system but which is also ill-suited for a sound national policy
of mineral development and conservation.
Taxpayers in the favored industries, and particularly a .few large
corporations, benefit at the expense of the rest of the business
community. The advantage is defended on the grounds of special risks
in the oil industry which, incidentally, is regarded as a favored
investment by conservative investment trusts. A business man desiring
to invest in a new product might incur greater risk, but is limited in
determining his taxes to the recovery of his actual investment costs
over the life of the property. The allowance for tax purposes of
deductions many times the investment that may be made in oil properties
means that many other types of businesses are now paying more taxes
than they should in order to enable the Government to recoup the tax
leakage from percentage depletion.
(fil
- 16 Improvement of the equity and strength of the tax system requires
that we definitely reject the undesirable extensions made in this
bill and move toward elimination of these special privileges. The
high level of revenue requirements which necessitates even the
retention of some onerous excise taxes makes this improvement the
more urgent. Consequently, I wish to urge upon your Committee the
changes which were proposed to the Ways and Means Committee which
would carry out the recommendation of the President that the more
excessive special depletion allowances permitted under present law be
reduced.
Tnis would reduce the revenue loss from these provisions by over
$200 million. The staff is prepared to present to the Committee the
results of the Department1s study of this subject, covering the amount
of the benefits and their effect on the economy.
Estate and gift taxes
Another conspicuous weakness of the House bill is the omission
of the long overdue estate and gift tax revisions. The need for
strengthening these taxes in the revenue system is widely recognized.
Such a program has been repeatedly urged by the Administration, most
recently by the President in 19*^8 and 19^9 and again this year. The
revisions proposed in these taxes would make an important contribution
to additional revenue.
The present weakness of the estate tax and the failure of this
levy to keep pace with the income tax is clearly illustrated in
Charts 5 to 8. The estate and gift taxes are now weak because (1)
the imposition of separate, unrelated taxes upon property disposed
of during life and at death permits undue escape from taxation, (2)
property left in trust is accorded extensive advantages over property
left outright, and (3) changes made in 19*18 result in excessive
exemptions and unreasonably low effective rates for married persons.
The program which was outlined to the Ways and Means Committee would
correct most of these defects and would restore the revenue from
these taxes to a level somewhat above that reached prior to the 19*+8
Act.
The House bill makes no provision for a general overhauling of
the estate and gift tax structure. Moreover, it contains two pro
visions which are undesirable.
One of these would weaken the estate tax law by excluding certain
gifts made in contemplation of dearth from the estate tax base. As I
pointed out to the Ways and Means Committee, the best over-all solution
of the contemplation of death problem would be to integrate the estate
- 17 -
and gift taxes into a single transfer tax. Pending a review by your
Committee of the proposal for an integrated tax. I urge
House amendment to the contemplation of death provision not he adopted.
Another objectionable provision in the bill would exeraptfrom
income tax, in cases where a closely held corporation is the principal
asset in the estate, the dividends paid by the corporation to
estate up to the amount of liability for death taxes. While this is
intended to meet a special problem, the solution proposed would,
invite extensive tax avoidance. It would be preferable to deal with
this problem on a more limited basis or defer it until the broader
question of estate tax revision is considered.
Point XV tax proposals
The House hill contains no legislation carrying out those parts
of the President1s tax recommendations which derived their inipe us
from the Point IV program. These recommendations relate to the tax
treatment of-income derived abroad and are designed to remove
deterrents to the flow of private investment and technicians to
foreign countries.
One of these recommendations would treat the income of foreign
branches established by domestic corporations as the tax laws now
treat similar income obtained through foreign subsidiaries. The tax
would be postponed until the foreign earnings are brought home.
Such a provision would eliminate tax differentials as a ac o
determining the organisational form of a foreign business operation
and would afford greater flexibility to those contemplating invest
ments abroad. It would also permit reinvestment of foreign earnings
abroad without current tax consequences.
A corporation receiving dividends from a foreign subsidiary is
now permitted a credit for the income taxes paid abroad by “ e
subsidiary. This provision helps to eliminate international double
taxation. However, it applies only to a domestic firm which owns
a malority of the voting stock of the foreign corporation. Conse
quently, when two or more U.S. firms undertake to share the risk of
a foreign enterprise, only one of them, at most, can be safeguarded
against double taxation. One of the Department's P*0* ® ^ 9 **
field would lower the majority control requirement so that ownership
of any substantial interest in a foreign corporation would qualify a
U.S. firm for the foreign tax credit. This would encourage joint
ventures abroad, and would facilitate the participation of local
capital in such enterprises.
-
18
-
There is n e e d also for l i b e r a l i z i n g the f o r e i g n tax credit p r o
vi s i o n s as they a p p l y to firms that derive income in one f o r e i g n
co u n t r y b u t incur a n o f f s e t t i n g loss in a n o t h e r a n d fo r e x t e n d i n g it
to the estate tax.
The scope of the e x e m p t i o n n o w a c c o r d e d individuals on income
e a r n e d a b r o a d requires adjustment.
The p r e s e n t exe m p t i o n b egins to
a p p l y on l y w i t h the f i r s t fu l l tax a b l e y e a r of b o n a fide for e i g n
residence.
There is no s o und r e a s o n w h y the ea r n i n g s of the fiasat
e l e v e n months, say, of a n i n d i v i d u a l 1s f o reign r e s i d e n c e s h ould be
taxed w h e n it is clear that it is p a r t of l o n g - t e r m emp l o y m e n t abroad.
Accordingly, the D e p a r t m e n t has p r o p o s e d that once a n individual
qualifies for e x e m p t i o n as a f o r e i g n r e s ident for a taxable year,
the e x e m p t i o n should a p p l y r e t r o a c t i v e l y to his e a r nings thr o u g h o u t
the entire p e r i o d of his st a y abroad.
In p r e s e n t i n g m y comments on the H o u s e b i l l I have u n d e r t a k e n
also to p r o v i d e y o u r Committee w i t h the b a c k g r o u n d of the p r o g r a m
w h i c h the P r e s i d e n t a s k e d the Congress to consider.
The House b i l l m a k e s a n i m p o r t a n t c o n t r i b u t i o n toward m e e t i n g
the object i v e s of the P r e s i d e n t ’s p r o g r a m p r e s e n t e d in January.
However, it does not go far e n o u g h a n d should be improved.
I earnestly
urge y o u to consider the changes w h i c h w o u l d b r i n g the b i l l m o r e in
a c c o r d w i t h our p r e s e n t requirements.
I w a n t to say once more that I a m sure that the future c ourse
of v/orld events is v e r y m u c h in y o u r minds, as it is in mine.
Increased
dist u r b a n c e to w o r l d p e a c e w o u l d involve i n c r e a s e d demands u p o n us w h i c h
w o u l d require a d d i t i o n a l fisca l measures.
T h e effect of r e c e n t i nte r n a t i o n a l d e v e l o p m e n t s on our e x p e n d i t u r e s
w i l l b e c o m e clearer as events unfold.
Therefore, if d u ring the course
of y o u r c o n s i d e r a t i o n of this l e g i s l a t i o n it a p p e a r s that w e ar e co n
f r o n t e d w i t h a s u b s t a n t i a l inc rease in defense e x p e n d i t u r e s a n d strains
on the economy, I shall not hes i t a t e to so a d v i s e you. A s the Pre s i d e n t
i n d i c a t e d in his tax message, we mu s t be r e a d y to g e a r c h anges i n the
revenue laws to the nee d s of our economy.
The s e are times w h e n our p o l i t i c a l a n d e c o n o m i c i n s t i t u t i o n s are
c h a l l e n g e d a n d we s h ould not h e s i t a t e to p r o t e c t a n d p e r f e c t them.
A
h e a l t h y economy, a s o u n d fiscal a n d tax policy, fa i r a n d a d e q u a t e
taxation are a l l p a rts of our p a t t e r n for n a t i o n a l s t r e n g t h a n d w o r l d
leadership.
D e t a i l s of pr e s e n t c o r porate income t a x rate
1 •
U e t income
ITormal
0
$
5,000
tax
15/i
6$
ro
Exceeding;
1To*
\
•e x c e e d i n g •
: Co m b i n e d
: normal
Surtax
: tax an d
: surtax
&
Table
structure
Cumulative tax to
ton of bracket
Amount
$
’ Fercent
1,050
21$
$ 5,000
20,000
17
6
23
U .500
22*5
20,000
25,000
19
6
25
5.750
23
25,000
50,000
?!
22
53
19,000
2U
lU
32 2/
50,000
u
a n d over
381/
The b r a c k e t rates On the f irst $ 5 0 »000 a v e r a g e 3$ percent,
a s follows:
23$
a* E f f e c t i v e rate on first -.¿25,000 ----•
..........
S
b* E f f e c t i v e rate on ne x t $ 2 5,000 (the
n o t c h ) ......... -L*
c* Total ............................... . . . . . y . ..... “
d. D i v i d i n g b y 2, g i v e s a n a v e r a g e rate o f ................
tes, c o r p o r a t i o n s w i t h
I n s t e a d of a p p l y i n g the b r a c k e t ra
the rate of 3 S p e r c e n t
incomes abo v e $ 50,000 are ta x e a at
on their entire income*
76
3S
4^
Table 2.
Co m p a r i s o n o f c o r p o r a t i o n income t a x lia b i l i t i e s u n d e r
p r e s e n t law a n d u n d e r H o u s e bill, H.R. 8920
• E f f e c t i v e rates
Tax liabi l i t i e s
Het income
P r e s e n t l a w t House bi l l
$
ro
H-*
0
0
•
•
„
: I n c rease (f)
Present House,
N/
W 1 1 !
or
law
J"Li d e c rease (-)
21.00#
10,000
2,200
2 ,10 0
22,00
2 1.0 0
-1.0 0
25,000
5,750
5 .2 5 0
23.00
2 1.0 0
-2.00
30.000
8,+400
7,3 0 0
28.00
2*4.33
-3.67
50.000
19,000
15,50 0
38.00
3 1 .0 0
- 7.0 0
60.000
22,800
19,600
38.00
32.67
-5.33
75.000
28,500
2 5,750
38.00
3*4*33
“3.67
100,000
38,000
36,000
38.00
36 .00
-2.00
166,667
63,333
6 3 ,3 33
38.00
38 .0 0
250,000
95,000
9 7,500
38,00
39.00
/1.00
1,000,000
380,000
+405,000
38.00
*40.50
/2.50
10,000,000
3,800,000
*+.095,000
38.00
*40.95
/2.95
100 ,000,000
3 8 ,000,000
to,995,ooo
38.00
Ui. 00
/3.0 0
5,000 $
1,050
$
1 ,0 5 0
0#
0
Table
3*
C o r p o r a t i o n tax p a y m e n t s u n d e r pr e s e n t l a w a n d u n d e r
H o u s e M U , H.Ro 6920
( a s s u m i n g a constant l i a b i l i t y o f $ 1 0 0 in calendar years
Date of p a y m e n t
*
Pr esent l a w
*
House bill
•
1950
M a r c h 15
J u n e 15
September 15
Dec e m b e r 15
$
25
25
25
' 25
$
25
25
25
25
25
25
25
25
30
30
20
20
25
25
25
25
35
35
1515
25
25
25
25
Uo
10
10
1951
M a r c h 15
J u n e 15
September 15
D e cember 15
1952
M a r c h 15
J u n e 15
S e ptember 15
D e cember 15
1953
M a r c h 15
J u n e 15
September 15
D e c e m b e r 15
19 5^
M a r c h 15
Ju n e 15
September 15
D e c e m b e r 15
25
25
25
25
^5
U5
5
5
1955
M a r c h 15
Jun e 15
September 15
D e c e m b e r 15
25
25
25
25
19^ 9- 5^-)
50
50
—
-
Chart I
CORPORATION INCOME TAX E F F E C T IV E R A TES
Present Law and House Bill —H.R. 8920
Effect of House
Bill
Income Levels
No change intax. .$5,000 and under
Taxes reduced.... .$5,000 to 167,000
Taxes increased... .Over $167,000
Present Law
20
40 60 100
200 400 60C
Taxable Net Income (Thousands of Dollars)
10,000
Chart 2
O IS T R lE U fl^ ^ ^ R P O R ^ T Ip N S ANÔ TH EIR INCOME
' ■' %
•
Ry Income Classes, 1950* * ' :i
5 % of all corporations receive 81% of corporate income
. % ofNumber
r of Corporations
% of Taxable Income
Under 5
5-25
- M a b le
25-50
50-16?
N e t incom e { Th ou sand s o f D o lla rs
Estimated
167 and over
}*---------------------- *
Chart 3
E S O F M ANUFACTURING CORPORATIONS
*947 -1949
¡¡¡¡¡¡Ili
%
P ro fits Before Tax as % of Stockholders’ Equity
////
////
IibI
////
////
V///
////
////
// //
////
///s
/./ / /
////
////
/// /
// s/
////
*!*!!**!
Under 250
////
250~M>00
1,000*5*000
5000-100,000
---- Total Assets Class {Thousands of Doliors)
1 '///,
.
.
if S
i
p lin ////,
////,
////
'/ / / .
'/ / /
'/ / /.
f/ / /
// / / .
'/ / / .
// / / ,
/ / / /.
'/ / / é
'/ / / .
'/ / / .
'/ / / i
izz
f/ / / .
// / / .
// / / ,
// / /.
////
////
//// .
// / /
/// /
ÎOOOOOendwer
;
Chart 4
TAX PAYM ENTS O F C A LEN D A R -Y EA R CORPORATIONS
UNDER PROVISIONS O F H O USE B 1 LL-H .R . 8 9 2 0
Present
4 Payment
System
Transition Period
2 Payment
System ^
March t5
SapUS
1950
Otftee or fix Secretar» of * * T ttm ry
1951
1952
1955
1954
Calendar Year*........ ;..»..•:..;......
1955
Chart 5
____ ____ IN TERN AL REVEN U E DERIVED FROM __________
INDIVIDUAL INCOME AND ESTATE AND G IFT TAXES
1939 and 1949
Dollar Amounts (billions)
Percent of Total
40.5__ TotalInternal Revenue.
'/ '/ / \
8 times prewar
100
Individual Income..
18 times prewar
Estate and G ift..
2 times prewar
Qflfet of th» Swrtafj1Of Ö* 1f*w*y
Total Internal Revenue
Individual Income—
2 ‘/4 times prewar
Estate and Gift.
!/3 of prewar
Chart 6
___________ IN DIVIDUAL INCOM E A N D ____________
E S T A T E T A X EX EM P T IO N S, 1939 AND 1949
Individual Income Tax Exemptions
Estate Tax Exemptions
$ 120,000
Change,
Change,
$ 2,500
l9 3 9 to 1 9 4 9 :
1939 to 19 49:
Married, up.2 0 0 %
Single, up____50%
Married,down 5 2 %
Single, down__40%
$ 60,000
$ 1,200
$1,000
$ 40,000
$600
,h,
Offie* of th» Swrttary of ths Im m >
HIM):
$ 40,000
Chart 7
COVERAGE OF TH E INDIVIDUAL INCOME AND
* “ ESTATE TA X ES, 1939 AND 1949
Individual Income Tax
Percent of population (14 and over)
with taxable incomes
Estate Tax
Percent of adult decedents
with taxable estates
41% __10 times prewar
1.2%_Some as prewar
Chart 8
INDIVIDUAL INCOME AND EST A T E TA X
" E F F E C T IV E R A TES, 1939 AND 1949
M arried Person
Estate Tax
Individual Income Tax
Individual income tax rose at all levels
but estate tax fell.
>50
Net income before Exemp. {$ Thous.)
250 •*,; 500
* Estatetax rotes assume futiuse ofthe marital¿eduction and maximum creditfor slide death taxes*
Offici o f
Sêçrstety of the Tnmüwt
1000
— A l aste/# before Exemp* ($ Thous*)—
—
Wmu*
- y t -- j r — y
Kellie Tayloe Ross, Director of the Mint, announced
today that proof coins will be placed on sale by the Mint
beginning July 1 7 , 1950.
1 9 5 0 . That-
» w h coins were issued and
sold by the Mint in 1942.
Proof coins are coins
Mint for collectors.
j
of regular design issued by the
A
They are stamped from specially prepared
metal on a hand-operated hydraulic press.
The dies are highly
polished and are buffed before each coin is stamped.
In
from regular coins only in that they
have a mirror-like surface resulting from the use of the
polished dies.
The metal content and gross weight are the same.
The new coins will be sold^only in sets consisting of the
1, 5* 10, 25 and 50 cent-pieces.
The sets will sell for $2.10,
including postage, and the price is the same regardless of
whether purchased by mail or over the counter.
discount for the purchase of multiple sets.
There is no
The difference
between the face value of the set, 91 cents, and the selling
price covers the special work required for proofing the coins,
and postage.
At the present time the Mint has approximately 10,000
sets on hand and until such time as additional sets have been
manufactured, there will be a limit of five sets to a person.
All proof coin sets will be sold at the Philadelphia Mint.
Over the counter sales will be for cash only.
Those wishing
to purchase sets by mail should make remittances by money order
or postal note payable to the Superintendent, United States Mint,
Philadelphia, Pennsylvania.
acceptable for mail orders.
Cash or checks will not be
T R E A S U R Y
D EP A R T M EN T
IMMEDIATE RELEASE,
Wednesday, July 5, 1950,
S -2 3 8 7
Nellie Tayloe Ross, Director of the Mint,
announced today that proof coins' will be placed on
sale by the Mint beginning July 17, 1 9 5 0 . Proof
coins were last issued and sold by the Mint in
19^ 2 .
Proof coins are coins of regular design and
denomination, issued by the Mint for collectors.
They are stamped from specially prepared metal
on a hand-operated hydraulic press. The dies
are highly polished and are buffed before each
coin is stamped. In appearance, proof coins
differ from regular coins only in that they have
a mirror-like surface resulting from the use of
the polished dies. The metal content and gross
weight are the same.
The new coins will be sold by the Mint only
in sets consisting of the 1, '5* 10, 25 and 50
cent-pieces,. The sets will sell for $2.10, includ
ing postage, and the price is the same regardless
of whether purchased by mail or over the counter.
There is no discount for the purchase of multiple
sets. The difference between the face value of
the set, 91 cents, and the selling price covers
the special work required for proofing the coins,
and postage.
At the present time the Mint has approximately
10,000 sets on hand and until such time as additional
sets have been manufactured, there will be a limit
of five sets to a person.
All proof coin sets will be sold at the
Philadelphia Mint. Over the counter sales will
be for cash only. Those wishing to purchase sets
by mail should make remittances by money order or
postal note payable to the Superintendent,
United States Mint, Philadelphia, Pennsylvania.
Cash or checks will not be acceptable for mail orders.
0 O0
- 3 -
purposes of taxation the amount of discount at -which Treasury bills are originally
sold by the United States shall be considered to be interest.
Under Sections lj.2
and 117 (a) (1) of the Internal Revenue Code,, as amended by Section Ilf? of the
Revenue Act of 19l|l<> the amount of discount at viiich 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
I'
,| |:
I•
■
|!
yj| ■
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. lj.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 Branph.
Copies
-,
2
-
amount of Treasury b ills 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 ?»ri l l be opened at the Federal
Reserve Banks and Branches, following which public announcement w ill be made by
-the Secretary of the Treasury of the amount arid price range of accepted bids.
Those submitting tenders ’/fill be advised of the acceptance or rejection thereof.
The Secretary of the Treasury expressly reserves the right to accept or reject
any or a il tenders, in whole or in part, and his action in any such respect shall
be fin a l.
Subject to these reservations, non—competitive tenders for $200,000 or
less without stated price from any one bidder w ill be accepted in f u ll 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
Ju ly 13, 1950
, in cash or other immediately avail
able funds or in a like face amount of Treasury b ills maturing
Cash and exchange tenders w ill receive equal treatment.
July 13» 1950
yyy
Cash adjustments w ill be
r
1" '
"~ / >x~v
made for differences between thé par value of maturing b ills accepted in exchange
and the issue price of the new b ills .
The income derived from Treasury b ills , whether interest or gam from the sale
or other disposition of the b ills , shall not have any exemption, as such, and loss
from the sale or other disposition of Treasury b ills shall not have any special
treatment, as such, under the Internal Revenue Code, or laws amendatory or supplemen
tary thereto.
The b ills shall be subject to estate, inheritance, g ift or other
excise taxes, whether Federal or State, but shall be exempt from a ll 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
W ashington
FOR RELEASE, MORNING NEWSPAPERS,
Friday, July 7» 1950»__________
toc”
The S e c r e ta r y o f th e T r e a s u ry , by t h i s p u b lic n o t ic e , i n v i t e s te n d e rs f o r
$1 *0 0 0 .0 0 0 .0 0 0
y or
th e r e a b o u ts , o f
ftkAjK.
92
-d a y T reasu ry b i l l s , f o r cash and
flUk»K»
i n exchange f o r T reasu ry b i l l s m atu rin g
13, 1950 _
, t o be is s u e d on
Ì|ÌLhJ{
a d isc o u n t b a s is under c o m p e titiv e and n o n -co m p e titiv e b id d in g a s h e r e in a ft e r
The b i l l s o f t h i s s e r ie s w i l l be dated
w i l l mature
October 1 3 . 1950 , wrhen th e f ace amount w i l l be p ay ab le w ith o u t
none
They w i l l be is s u e d i n b ea rer form o n ly , and i n denom inations o f
in te r e s t.
J u l y 13^^1950________
9 and
p ro v id e d .
$ 1 ,0 0 0 , $ 5 ,0 0 0 , $ 1 0 ,0 0 0 , $1 0 0 ,0 0 0 , $ 500 , 000 , and $ 1 ,0 0 0 ,0 0 0 (m a tu rity v a lu e ) .
Tenders w i l l be r e c e iv e d a t F e d e r a l Reserve Banks and Branches up to the
Daylight Saving
c lo s in g h o u r, two o ’ c lo c k p . m , , E a s te r n
tim e ,
Monday, J u l y 1 0 , 195®
1
'■ '■ ~'f'"/«-■ v~' •1J ~u 1 1
Tenders w i l l not be r e c e iv e d a t th e T reasu ry D epartm ent, W ashington.
Each
ten d e r must be f o r an even m u ltip le o f $ 1 ,0 0 0 , and i n th e case o f co m p e titiv e
te n d e rs the p r ic e o ffe r e d must be ex p resse d on th e b a s is o f 100, w ith not more
th a n th re e d e c im a ls , e , g . , 99.925*
F r a c t io n s may n o t be u s e d .
I t i s urged
t h a t te n d e rs be made on th e p r in te d form s and forw arded in th e s p e c ia l en velop es
which w i l l be s u p p lie d by F e d e r a l Reserve Banks or Branches on a p p lic a t io n
th e r e fo r .
Tenders T i l l be r e c e iv e d -w ith o u t d e p o s it from in c o rp o r a te d banks and t r u s t
companies and from r e s p o n s ib le and r e c o g n ize d d e a le r s i n in vestm en t s e c u r i t i e s .
Tenders from o th e rs must be accom panied b y payment o f 2 p e rce n t o f th e f a c e
T R E A S U R Y
D EP A R T M EN T
Inform ation S e rv ice
RELEASE MORNING NEWSPAPERS
Friday, July 7 1950 .
WASHINGTON, D .C .
3-2388
The Secr e t a r y of the Treasury, by this public notice, invites
tenders for $ 1 , 000 , 000 , 000 , or. t h e r e a b o u t s , of 92 -day T r e a s u r y
bills, for cash and in exchange for T r e a s u r y bills m a t u r i n g
July 13', 1950, to be issued on a disc o u n t basis u n d e r c o m n etitive
and n o n - c o m p e t i ti v e b i d d i n g as h e r e i n a f t e r provided.
The bills of
this- series w i l l be d a t e d July 13 , 1950, and w i l l m a t u r e
October 13., 1950 , w h e n the face amount will be p a y a b l e with o u t
interest . T hey w i l l be issued in b e a r e r f orm only * and in
d e nominations of $1,000, $5,000, $10,000, ,4. - 100,000, $500,000, and
$ 1 ,000,000 (maturity value).
Tenders will be r eceived at F e d e r a l R e s e r v e B a n k s a n d B r a n c h e s
up to the c losing hour, two o ' c l o c k p . m . , E a s t e r n D a y l i g h t Sa v i n g
time, Monday, July 10 , 1950 . Tenders will not be r e c e i v e d at the
Treasury Department, Wash i n g t o n .
E a c h tender m u s t be for an even
m u ltiple of $1,000, and in the case of. compe t i t i v e tenders the
price offered m ust be e xpress e d on the bas i s of 100, w i t h not more:
than three decimals, e. g., 9 9 *9 2 5 . F r a c t i o n s m a y n o t be used.
It is urged that tenders be m a d e on the p r i n t e d forms and f o r w arded
in the special envelopes w h i c h w ill be supplied by F e d e r a l R e s e r v e
Banks or B r a n c h e s on a p p l i c a t i o n therefor.
Tenders will be r eceived w i t h o u t depo s i t from i n c o r p o r a t e d
banks and trust companies and from r e s p o n s i b l e and r e c o g n i z e d
dealers in investment securities'.
Tenders from others m u s t be
accompanied by payment of 2 p e r c e n t of the face am o u n t of T r e a s u r y
bills a p p l i e d for, unless the tenders a r e :a c c o m p a n i e d b y a n express
guaranty of paym e n t by an i n c o r p o r a t e d b a n k or trust company.
I m m e d i a t e l y after the c l o s i n g hour, tenders w i l l be opened at
the F e d e r a l R e s e r v e B anks and Branches, f o l l o w i n g w h i c h p u blic
announcement will be made by the Secreta r y of the T r e a s u r y of the
amount and price range of a c c e p t e d bids,
Those s u b m i t t i n g tenders
will be advised of the accep t a n c e or rej e c t i o n t h e r e o f . The
Secretary of the T r e a s u r y expr e s s l y rose rves the right to a ccept or
reject any or all tenders, in who l e or i n part, and his a c t i o n in
any such respect shall be final.
Subjec t to these r e s e r v a t i o n s ,
non-competitive tenders for $ 2 0 0 , 0 0 0 or less w i t h o u t stated price
from any one b i d d e r will be a c c e p t e d in full at the a v e r a g e price
2
(in three decimals) of accepted competitive bids. Settlement for
accepted tenders in accordance with the bids must be made or
completed at the Federal Reserve Bank on July 1 3 , 1 9 5 0 , in cash or
other immediately available funds or in a like face amount of
Treasury bills maturing July 1 3 , 1 9 5 0 . 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 so.ld
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.
0O0
K
i
O
S
.■*»*«.
^OpOOftO r-reSWifr
in response to nuspdrous inquiries, Commissioner of Internal
Revenue (George J* Scbwneman today advised all shipper a and carriers
of freight that tlm/ihree percent transportation tax applies to all
shipments of property between two points In the United States and the
law does not excuse anyone from this tax if he pays his domestic
freight bills outside the United
JL6
While thq^transportation tax^applies to "amounts paid within
the United Stat e d . the Commissioner explained ttewtJlCongress intended
to include ail bemw'
domestic shipments where all the transactions
in connection with shipments of goods normally take place within the
United States*
The carriers are held responsible for the collection of the tax,
and the tax may also be assessed against the shippers*
T R E A S U R Y
D EP A R T M EN T
WASHINGTON, D .C
Information Service
IMMEDIATE RELEASE
Friday. July 7. 1950
S-2389
In response to numerous inquiries, Commissioner of Internal
Revenue George J. Schoeneman today advised all shippers and carriers
of freight that the three percent transportation tax applies to all
shipments of property between two points in the United States and the
law does not excuse anyone from this tax if he pays his domestic
freight bills outside the United States#
TJhile the law covering the transportation tax states that it
applies to wamounts paid within the United States”, the Commissioner
explained there is no doubt that Congress intended to include all
domestic shipments where all the transactions in connection with
shipments of goods normally take place within the United States•
The carriers are held responsible for the collection of the tax,
and the tax may also be assessed against the shippers#
0O0
W S . S B MOBHISO ¡ m w j æ a t B ,
ftwsaay, i§¡8 U. 1950.
$h» Seer.tsrjr of th. Treasury announced lut evening that the tender* for
*1 ,0001000 ,0001 or t i i 0 3 r st of 92**day freasury bills to be daied July 13 and to s&t
October 13 , 1950, which were offered on July ?, were opened et the federal Heeerve Banks
on July 10 .
fhe detail« of this issue are as follows;
total applied for * $1 ,828,270,000
total accepted
- 1 ,005,7*0 .9000 (includes $114,929,000 entered on a m a »
competitive hasis and accepted in full
et the average price shown below)
Average price
« 99,702 .Equivalent rate of discount approx. 1*168$ per annum
lange of accepted competitive bids;
* 99*712 Ifuivalent rate of discount approx* 1 *127$ per annum
- 99.701
*
*
w
»
*
1 ,1^0$ *
«
low
(5 d percent of the amount bid for at the low price was accepted)
federal Keserve
District
fetal
Applied for
fetal
Accepted....
Boston
Sew fork
au*d«iphis
Cleveland
Richmond
Atlanta
Chicago
St. Bonis
Minneapolis
Kansas City
Balias
San frsnclseo
♦ 14,977,000
1.317,693.000
33,420,000
34 ,373,000
7 ,912,000
13,007,000
129,695.000
25 ,432,000
4 ,536,000
47 ,196,000
45 ,697.000
94.332.000
$
$1,828,270,000
$1 ,005 ,741,000
fOfJÜu
14,2^5,000
667,805,000
18,320,000
31,985,000
7,472,000
12,567,000
103.855.000
14,356,000
4,148,000
39 ,156,000
33,277,000
5&*513*0M
T R E A S U R Y
D EP A R T M EN T
Information Service
WASHINGTON, D.C.
RELEASE M O R N I N G NEWSPAPERS,
T u e s d ay, J u l y 11, 1950.
S-2390
T h e S e c r e t a r y of the T r e a s u r y a n n o u n c e d l a st e v e n i n g th at the
tenders .for $ 1 , 0 0 0 , 0 0 0 , 0 0 0 , or t h e r e a b o u t s , of 9 2 - d a y T r e a s u r y b i l l s
to be d a t e d J u l y 1 3 a n d to m a t u r e O c t o b e r 1 3 , 1 9 5 0 , w h i c h w e r e
o f f e r e d - o n J u l y 7 , w e r e o p e n e d at the F e d e r a l R e s e r v e B a n k s o n
July 10.
Th e d e t a i l s of this i s s u e ar e as fo ll ow s:
Total applied for - $1 ,8 28 ,2 70 ,0 00
Total accepted
1,005,7^1,000
Average price
(includes $114,929,000
entered on a non-competitive
basis and a c ce pt ed in full
a t the a v e r a g e p r i c e s h o w n
below)
- 9 9 * 7 8 2 E q u i v a l e n t r a t e of d i s c o u n t a p p r o x ,
1 .1 6 8 $ p e r a n n u m
R a n g e o f a c c e p t e d c o m p e t i t i v e bids:
- 99*712 E q u i v a l e n t rate
1.127$
* 9 9 . 7 0 1 Eq ui v a l e n t rate
1 .1 7 0 $
kow
(56 p e r c e n t
of d i s c o u n t a p p r o x .
per annum
of d i s c o u n t a p p r o x ,
per annum
of the a m o u n t b i d f o r at the l o w p r i c e w a s a c c e p t e d )
Federal Re se rv e
P i s t r l et_______
Total
Applied for
Boston
Ne w Y o r k
Philadelphia
Cleveland
Richmond
Atlanta
Ch icago
S t . Louis
Minneapolis
Kansas C i t y
Pallas
San F r a n c i s c o
$
14,977,000
1,317,693,000
33.420.000
34.373.000
7 ,912,000
$
14,245,000
6 6 7 .8 0 5 . 0 0 0
,
18 320,000
25.432.000
4,536,000
4 7 .1 9 6 . 0 0 0
45.697.000
9 4 .3 3 2 . 0 0 0
31.985.000
7.472.000
1 2 .5 6 7 . 0 0 0
1 0 3 .8 5 5 . 0 0 0
14.358.000
4.148.000
39.156.000
33.277.000
58.553.000
$ 1 , 8 2 8 ,2 7 0 , 0 0 0
$1,005,741,000
13.007.000
1 8 9 ,6 9 5 , 0 0 0
TOTAL
Total
Accepted
0O0
TREASURY DEPARTMENT
F f s c a l S e *v îce
STATUTORY DEBT LIMITATION
W ashington,
O F ..J m e jOs. ^.SO.
Section 21 of the Second Liberty Bond Act, as amended, provides that the face amount, of obligations issued
under authority of that Act, and the face amount of obligations guaranteed as to principal and interest by the
United States (except such guaranteed obligations as may be held by the Secretary of the Treasury), "shall not
exceed in the aggregate $275,(XX),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 aftount of obligations outstanding and the face amount which can still be
issued under this limitation:
Total face amount that may be outstanding at any one time
Outstanding
f275,000,000, OCXS
Obligations issued under Second Liberty Bond Act, as amended
Interest-bearing:
Treasury bills...,.., ..............
# 13,532.988,000
Certificates of indebtedness,,...#*
18,418,074,000
Treasury notes.................. .
28,875,827,900
60 ,826,889,900
Bonds -
102,795,261,000
Treasury....................
Savings (current redemp,value)#„,
57,536,302,647
Depositary........... ...
Armed Forces Leave,...... ........
284,502,500
Investment series.
953,525,000
Special Funds Certificates of indebtedness#....
Treasury notes............
2 9 7 .1 3 9 ,1
425
, ,
1 8 330 750,000
14,025,284,000
Total interest-bearing.
Matured, interest-ceased...... .
Bearing no interest:
War savings stands.
32,356,034,000
2 55,049,454 ,4 72
260,947,769
48,686,708
3,341,446
Excess profits tax refund bonds..,.
Special notes of the United States:
I n t e m a t ’l Monetary Fund series..
Total....... ............ ...... .......
16 1 ,866,7 3 0 ,5 7 2
1.322.028.154
1.270.000.000
256,632,430,395
Guaranteed obligations (not held by Treasury):
Interest-bearing:
Debentures: F.H.A.
15,6^5,886
17,077,809
2.^5,225
19,503,03*
Demand obligations: C.C.C. .... .
Matured, interest-ceased. .....................................
Grand total outstanding.......................... y ......
Balance face amount of obligations issuable under above authority.
Reconcilement with Statement of the Public Debt
(Daily Statement of the United States Treasury,
June 3 0 , 1950
July 3 , 1950
Outstanding Total gross public debt............................................
Guaranteed obligations nat owned by the Treasury............... ................
Total gross public debt and guaranteed obligations....**............. ..........
Deduct - other outstanding public debt obligations not subject to debt limitation
a j 9
1
256,652,133,429
18-547.866.571
2 5 7 ,3 5 7 ,352,351
19 ,503,034
257,376,855,385
724,721,9#
256,652,133,429
STATUTORY DEBT LIMITATION
U
AS OF JINE 30. 1950
July lQ, 1950
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
sucn guaranteed obligations as may be held by the Secretary of the Treasury), "shall
not exceed in the aggregate $275,000,000,000 outstanding at any one time. For pur
poses of this section the current redemption value of any obligation issued on a
discount basis which is redeemable prior to maturity at the option of the holder
shall be considered as its face amount."
The following table shows the face amount of obligations outstanding and the
face amount which can still be issued under this limitations
Total face amount that may be outstanding at any one time
Outstanding
Obligations issued under Second Liberty Bond Act, as
Interest-bearing:
Treasury bills........ ........ $ 13 , 532 ,988 , 000
Certificates of indebtedness... 18,418,074,000
28,875,827.900
Treasury notes.......... .
Bonds Treasury.... ......... ....... 102, 795, 261,000
Savings (current redemp, value) 57,536,302,647
Depositary..
284, 502 ,500
Armed Forces Leave,
297,139,425
Investment series.,
953.525,000
Special Funds Certificates of indebtedness,
18.330.750.000
Treasury notes,...... .
14.025.284.000
Total interest-bearing,...
Matured, interest-ceased.............
Bearing no interest î
War savings stamps............
4 8 , 686,708
Excess profits tax refund bonds
3,341,446
Special notes of the United States:
Internat*1 Monetary Fund series 1,270.000.000
Total..... .............. ........... 77~
Guaranteed obligations (not held by Treasury):
Interest-bearing:
Debentures: F.H.A..............
15,645,886
Demand obligations: C.C.C.....
1.431.923
Matured, interest-ceased......... ............ ....
$275,000,000 ,00 (
amended
$60,826,889,900
161,866,730,572
32.356.034.000
255,049,654,472
260,947,769
1.322.028.154
256,632,630,395
17,077,809
2.425,225
19,503,034
Grand total outstanding...
Balance face amount of obligations issuable under above authority.
Reconcilement with Statement of the Public Debt - June 30
(Daily Statement of the United States Treasury, July 3 /
Outstanding 7
9
Total gross public debt........«
o
.
»
a t
Guaranteed obligations not owned by the T r e a s u r y
Total gross public debt and guaranteed obligations.............. .
Dedubt - other outstanding public debt obligations not subject to*
debt limitation..................... .. _ :v • .
256.652.133.429
18,347.866.571
1950
1950
257 357 352 351
. * 19*503*034
257 376^855*385
*
1
/
7 2 4 .721.956
¿JOj OpÄj JLjjj
S-239:
1
IMMEDIATE RELEASE
(A/A
Ju*r
19g0____
},nso
The Bureau o f Customs announced today prelim inary figu re s showing
the inports fo r consumption o f commodities on which quotas were prescribed
by the P hilip pin e Trade Act o f 191*6, from January 1 , 1950* to June 30,
1950, in c lu s iv e , as fo llo w s:
Products of the
Philippines
: Established Quota
:
Quantity
Buttons ........................
: Unit of
: Quantity
: Imports as of
: June 30, 1950
850,000
Gross
278,314*
Cigars
200,000,000
Number
286,325
Coconut O il ...............
14*8,000,000
Pound
58,700,135
1,61*8,091
Cord a g e ........ ..
6,000,000
n
R ice
1,01*0,000
«
Sugars
........................
(refined.... *...................................
l,90i*,000,000
Pound
(unrefined...........
55U, 2l*9, 280
Tobacco ........................
6,500,000
Pound
275,21*2
TREASURY DEPARTMENT
Washington
IMMEDIATE RELEASE
Wednesday, July 12« 1950
S—2392
The Bureau of Customs announced today preliminary figures showing
| ^he imports for consumption of commodities on which quotas ?/ere prescribed
by the Philippine Trade Act of 1946, from January 1, 1950, to June 30
1950, inclusive, as follows:
9
Products of the
Philippines
:
:
•
•
Buttons ......... ..
Established Quota
Quantity
:
:
Unit of
Quantity
•
:
Imports as of
June 30, 1950
850,000
Gross
278,344
Cigars ...........
200 , 000,000
Number
286, 325
Coconut O i l .... ...
448 , 000,000
Pound
58,700,135
1,648,091
Cordage ...........
6 , 000,000
tt
Rice ..............
1 , 040,000
n
—
(refined
Sugars
(unrefined
T o b a c c o ....... . ,
1,904,000,000
Pound
554,249,280
6 , 500 , 000
Pound
275,242
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, howfver, that
not more than 33-1/3 percent of the quotas shall be filled by cotton wastes
other than comber wastes made from cottons of 1-3/16 inches or more in staple
length in the case of the following countries; United Kingdom, France,
Netherlands, Switzerland, Belgium, Germany, and Italy;
•
Imports
Established 5 Total imports jEstablished;
Country of Origin : TOTAL QUOTA ! Sept . 20 , 194 % j: 33-1/3# of) Sept. 20, 1949,
I to June 30*1950 'Total Quota? to June 30, 19ÉÔ
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 I
1,261,186
239,690
75,807
69,627
5,482,509 j
l,66l,3U6
—
1,441,152
-
75,807
i
1
lU,632
-
lit, 632
;
-
;
-
.-
-
-
—
25,443
7,088
hok
-oOo-
22,747 :
14,796
12,853
-
-
-
1/ Included in total imports, column 2.
-
1 ,261,186
75 ,8 0 7
j
__ i
1,599,886
—
-
bolt
1 ,352,029
j
j
!
1
I
IMMEDIATE RELEASE
W M t
July U , 1950
The Bureau of Customs announced today that preliminary data on imports of
cotton and cotton waste chargeable to the quotas established by the President’s
proclamation of September 5, 1939, as amended, for the period September 20,
194-9, to June 30,
1950, inclusive, except as noted below, are as follows:
COTTON (other than linters)
(In pounds)
Country of
Origin
Under 1-1./8” other
than roug*h or harsh
unde: 3/4"
Established Imports Sept.
Quota
20, 194
to
June 30. 1950
%
Egypt and the
Anglo-Egyptian
Sudani•1.1..11 •
783,816
Peru. . . . . . . . . . . 1.
-247,952
British India.. . .
2¿003,483
China. . . . . . . . . . . .
1^370,791
Mexico..........
8,883^259
Brazil.. . . . . . . . . .
618,723
Union of Soviet
Socialist Republies.............
475,124
Argentina.. . . . . . .
5,203
Haiti..... ......
•237
Ecuador. . 1 .... 1 . 1
9,333
Honduras. ...... ..
752
Paraguay.. . . . . . . .
871
Colombia. . . * . . . . «
124
Iraq. . . . . . . . . . . . .
195
British East
2,240
Africa. . . . . . . . . . .
Net herland s *East’
Indies...........
71,388
—
Barbados.........
Other British
21,321
West Indies l/...
Nigeria...... .
5,377
Other British
West Africa 2/...
16,004
Other French
Africa 3/.... ...
689
Algeria and Tunisia
14,516,882
1/
<5\J
3/
4/
5/
175,178
116,1*18
1-1/8” or more
but less than
1-11/16”
Imports Feb. 1,
1950,
, to
June 30. 1950
Less than 3/4”
harsh or rough 5/
U
1*5,091,930
561*,117
Imports Sept. 20,
1949, to
June 30, 1950
—
35,702,822
—
mm
8,883,259
¿68,666
_
—
—
373
-
-
mm
—
—
•mm
-
—
mm
—
—
—
—
.
mm
mm
•
_
mm
mm
-
mm
mm
mm
—
mm
9,61*3,521
1*5,656,1*20
35,702,822
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, for the quota period February 1, 1950, to
Established Quota - 70,000,000.
January 31, 1951, inclusive.
S
(0
TREASURY DEPARTMENT
Washington
IMMEDIATE RELEASE
Wednesday, July 12. 1950
'
S-2393
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,
1949, to June 30, 1950, inclusive, except as noted below, are as follows:
COTTON (other than linters)
(in pounds)
Country of
Origin
Under 1-1/8« other
:1-1/3" or more : Less than 3/4"
than rough or harsh
bnan jharsh or rough 5/
______ under, 3/4 11______ ____:1 - 11 /1 6 « 4 /
s__________ :________
Established: imports Sept, :Imports Feb* 1,:Imports Sept. 20,
Quota
:20, 1949, to :1950, to
:1949, to
__________ ;June 30, 1950 :June 30, 1950 :June 30, 1950
Egypt and the
Anglo-Egyptian
Sudan.............
783 ,816
Peru.
••••oo.
247,952
British India..... 2,003,433
China.*...........
1,370,791
Mexico............ 8,883,259
Brazil.. ........ ...
618,723
Union of Soviet
Socialist Repub
lics *99.99999909..
475,124
5,203
Argentina........
Haiti.............
237
Ecuador......... .
9,333
Honduras.........
752
Paraguay..........
871
Colombia..........
124
Iraq,............ .
195
British East
Africa............
2,240
Netherlands East
Indies....... .
71,338
—■
Barbados.... .
Other British
West Indies l/....
21,321
Nigeria...........
5,377
Other British
West Africa 2/....
16 ,004
Other French
Africa 2/*......
689
Algeria and Tunisia
~
14 , 516,882
175,173
116,413
—
8,883,259
468,666
45,091,930
564,117
—
«9
—
373
—
—
35,702,822
«-#
WM
Mi
M
*99
Ml
v|(
|^
—
~
-
-
9,643,521
45,656,420
35,702,822
w
Aitili
uauuuj ijoiitiuuaj ucuucu-uci, i n i u u a u , anu. 1 o u ago*
2/ Other than Gold Coast and Nigeria.
3/ Other than Algeria, Tunisia, and Madagascar*
4/ Established Quota - 45,656,420, for the quota period February 1, 1950, to
January 31, 1951, inclusive*
5/ Established Quota - 70,000,000.
= /.
- 2 ~
COTTON YfASTES
(in pounds)
COTTON CARD STRIPS made from cotton having a staple of less than 1-3/16 inches
in length, CCMBER WASTE, LAP WASTE, SLIVER WASTE, AND ROVING WASTE, WHETHER
OR NOT MANUFACTURED OR OTHERWISE. ADVANCED IN VALUE: Provided, however, that
not more than 33-1/3 percent of the quotas shall be filled by cotton wastes
other than comber wastes made from cottons of 1-3/16 inches or more in staple
length in the case of the following countries: United Kingdom, France,
Netherlands, Switzerland, Belgium, Germany, and Italy:
î
:Total Imports
:Established:
Imports
Country of OriginEstablished:Sept« 20, 1949, : 33-1/3$ of:Sept* 20, 1949, _ ,
:TOTAL QUOTA:to June 30, 1950:Total Quota:to June 30* 1950 w
United Kingdom, ....
Canada,........
France,....... --British India,.....
N etherlands•,., ___
Switzerland..,. ___
Belgium,......
Japan....
China...... ...
Egypt ...... ... ....
Cuba..... ..... --Germany........
Italy..... .
....
Totals
4,323,457
239,690
227,420
69,627
68,240
44,388
38,559
3 a , 535
17,322
8,135
6,544
76,329
21,263
1,261,186
239,690
75,807
69,627
5,482,509
14,632
—
1,441,152
75,807
75,807
22,747
14,796
12,853
14,632
mm
—
—
1,261,186
».
—
mm
. 404
M
25,443
7,088
. 404
1,661,346
1 , 599,886
1 , 352,029
—
—
1/ Included in total imports, column 2,
—oOo'
mm
mm
FOR IMMEDIATE RELEASE,
UMt
195Q __________
T&( 7y ¡¡T C
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, 191*1, as modified by the President's proclamation of April 13, I9I4.2 ,
for the 12 months commencing May 29, 1950, as follows;
■Wheat
Country
of
Origin
Established ;
Imports
Quota
iMay 29, 1950, to
5 June 30, 1950
(Bushels)
(Bushels)
Canada
China
Hungary
Hong Kong
Japan
Uni ted Kingdom
Australia
Germany
Syria
New Zealand
Chile
Netherlands
Argentina
Italy
Cuba
France
Greece
Mexico
Panama
Uruguay
Poland and Danzig
Sweden
Yugoslavia
Norway
Canary Islands
Rumania
Guatemala
Brazil
Union of Soviet
Socialist Republics
Belgium
795,000
—
100
-
100
*100
100
2,000
100
1,000
100
-
-
*
1,000
100
100
795,000
mm
mm
mm
mm
mm
mm
mm
mm
mm
mm
M*
Ml
M*
8U0,0o0
3,815,000
2li,00Q
13,000
13,000
8,000
75,000
1,000
5,000
5,000
1,000
1,000
1,000
it, 000
2,000
12,000
1,000
1,000
1*000
mm
mm
mm
mm
mm
mm
mm
mm
_
mm
100
100
Wheat flour, semolina,
crushed or cracked
wheat, and similar
wheat products
Established :
Imports
Quota
$ May 29, 195C
•• to June 30,
(Pounds)
(Pounds)
-
795,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
3,815,000
800
.—
Ml
’ ' Mi
mm
mm
—
mm
mm
7-6
-p
w
•m
mm
mm
mm
mm
mm
—
-
_
—
-
—
—
Ii,000,000
3,815,876
TREASURY DEPARTMENT
Washington
.FOR IMMEDIATE RELEASE
S-2394
Wednesday, July 12, 1950
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 proclamation of April 13, 1942,
for the 12 months commencing 'May 29, 1950, as follows:
Wheat
Country
of
Origin
Established
Quota
Canada
China
Hungary
Hong Kong
Japan
United Kingdom
Australia
Germany
Syria
N e w Zealand
Chile
N etherlands
Argentina
Italy
Cuba
France
Greece
Mexico
Panama
Uruguay
Poland and Danzig
Sweden
Yugoslavia
N orway
Canary Islands
Rumania
Guatemala
Brazil
Union of Soviet
Socialist Republics
Belgium
r
Imports
:May 29, 1950, to
:June 30, 1950
Wheat flour, semolina,
crushed or cracked
wheat, and similar
wheat products
Established
Imports
Quota
May 29, 1950,
to June 30, 1950
(Bushels)
(Bushels)
(Pounds)
795,000
**
—
795,000
3,8X5,000
100
—
100
100
-*
100
2,000
100
—
1,000
100
—
«■*
—
—
—
m.
1,000
100
100
100
100
800,000
24,000
—
Wf
—
—
—
13,000
13,000
(Pounds)
3,8X5,000
800
—
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
—
—
•9
—
9-
—
—
—
—
—
—
•9
—
—
9.
mm
mm
mm
mm
mm*
•mm
mm
76
•mm
mm
mm
mm
mm
mm
mm
mm
mm
mm
mm
mm
795,000
,
4 000,000
3,815,876
IMMEDIATE RELEASE
J u l y IX. 1950
The Bureau of Customs announced today preliminary figures showing the
imports for consumption of commodities within quota limitations provided
for under the General Agreement on Tariffs and Trade, from the beginning
of the quota periods to June 30, 1950, inclusive, as follows:
Period and Quantity
Commodity
Unit
of
Quantity
Imports as of
June 30, 1950
Whole milk, fresh or
sour ...................
Calendar year
3,000,000
Gallon
10,069
Cream, fresh or sour .....
Calendar year
1 ,500,000
Gallon
705
Butter ...................
May 28, 1950 July 15, 1950
3,571,U29
Pound
Fish, fresh or frozen,
filleted, etc., cod,
haddock, hake, pollock,
cusk, and rosefish .....
Calendar year
■White or Irish Potatoes:
certified s e e d ....... .
other ..................
12 months from
Sept. 15, 19^9
Walnuts ................. .
Calendar year
(1)
3,629
1o
26,235,738
Pound
(1)
Quota filled
150,000,000
60,000,000
Pound
Pound
Quota filled
Quota filled
5 ,000,000
Pound
Quota filled
The proviso to Item 717 (b) limits the inports
for consumption at the quota rate to 13,117,870
pounds during the first 6 months of the calendar
year.
TREASURY DEPARTMENT
Washington
IMMEDIATE RELEASE
Wednesday, July 12, 1950
S-2395
The Bureau of Customs announced today preliminary figures showing the
imports for consumption of commodities within quota limitations provided
for under the General Agreement on Tariffs and Trade, i^*om the beginning
of the quota periods to June 30, 1950, inclusive, as follows*
Commodity
Period and Quantity
Unit
of
Quantity
Imports as of
June 30, 1950
Whole milk, fresh or
s o u r ...... .... t.......t
Calendar year
J p UUU p uuu
Gallon
10,069
Cream, fresh or sour •«•••
Calendar year
1 , 500,000
Gallon
705
Butter * * * * ..... . . . . . . T ..
Mav 28.
—
July 15, 1950
•3 c m
/On
round
26,235,738
Pound
(1)
Quota filled
150,000,000
OU p UUU p UU U
Pound
Pound
Quota filled
Quota filled
c p nnn
nnn
j
UUU p uuu
Pound
Quota filled
fish, fresh or frozen,
filleted, etc«, cod,
haddock, hake, pollock,
cusk, and rosefish ,
Calendar year
White or Irish Potatoes:
certified seed «*.,*,,,,
other ..................
12 months from
““p«* j o , J-y^-y
Walnuts
Calendar year
(l)
3,629
The proviso to Item 717 (b) limits the imports
for consumption at the quota rate to 13,117,870
pounds during the first 6 months of the calendar
year*
- 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 llf> 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, 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
-
masm.
amount of Treasury b ills 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 w ill be opened at the Federal
Reserve Banks and Branches, following which public announcement w ill be made by
the Secretary of the Treasury of the amount and price range of accepted bids.
Those submitting tenders w ill be advised of the acceptance or rejection thereof.
The Secretary of the Treasury expressly reserves the right to accept or re ject
any or a ll tenders, in whole or in part, and his action in any such respect shall
be fin a l.
Subject to these reservations, non-competitive tenders for $200,000 or
less Without stated price from any one bidder w ill be accepted in f u l l 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 20, 1950
, in cash or other immediately avail-
able funds or in a like face amount of Treasury b ills maturing J u l y 2 0 . 1950
xkkk
Cash and exchange tenders w ill receive equal treatment. Cash adjustments w ill be
made for differences between the par value of maturing b ills accepted in exchange
and the issue price of the new b ills .
The income derived from Treasury b ills ,
whether
interest or gain from the sale
or other disposition of the b ills , shall not have any exemption, as such, and loss
from the sale or other disposition of Treasury b ills shall not have any special
treatment, as such, under the Internal Revenue Code, or daws amendatory or supplemen
tary thereto.
The b ills shall be subject to estate, inheritance, g ift or other
excise taxes, whether Federal or State, but shall be exempt from a ll 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
MFM
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Thursday, July 13, 1950.
1
rj-
w
The Secretary of the Treasury, by this public notice, invites tenders for
$1 ,000 ,000,000
or t h e r e a b o u t s ,
of
91
- d a y T r e a s u r y bill s , f o r c a s h a n d
in exchange for Treasury bills mätur*y'iT -T*, w
1Qcri
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 20, 1950
will mature October 19, 1950
interest.
, and
, when the face amount will be payable without
They will be issued in bearer form only, and in denominations of
T e n d e r s w i l l b e r e c e i v e d at F e d e r a l R e s e r v e B a n k s a n d B r a n c h e s up; t o the
Daylight Saving
closing hour, two o ’clock p.m., Easterr/^t^xi^sacd time, u
Monday, July; 17. 1950
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
T R E A S U R Y
D EP A R T M EN T
Information S e rv ice
R E L EASE M O R N I N G NEWSPAPERS,
T h u r sday, July 13,__ 1 9 5 0 .
WASHINGTON, D .C .
S - 2 39 6
The Secretary of the Treasury, by this public notice* invites
tenders for $1,000,000,000, or thereabouts, of 91 - d a y T r e a s u r y
bills, for cash and in exchange for T r e a s u r y bills m a t u r i n g
July 20, 1950, to be issued on a d iscount basis u n d e r competitive
and non - c o m p e t i ti v e b i d d i n g as h e r e i n a f t e r provided.
The bills of
this series will be dated July 20, 1950, and w i l l m a t u r e Octo b e r 1 9 ,
1950, w h e n the face amount w i l l be p a y a b l e w i t hout interest.
They
will be issued in b e a r e r form-only, and in d e n o m i n a t i o ns 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 recei v e d at F e d e r a l R e s e r v e B a n k s and B r anches
up to the closing hour, two o ’clo c k p.m., E a s t e r n D a y l i g h t Sa v i n g
time, Monday, July 17, 1950.
Tenders w ill not be rece i v e d at the
Treasury Department, Washington.
E a c h tender must be for. an e ven
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 , w i t h not more
than three decimals, e. g., 99*925*
F r a c t i o n s m a y not be used.
It
is urged that tenders be m a d e on the p r i n t e d forms and forwarded
in the special envelopes w h i c h w i l l be supplied by F e d e r a l R e s erve
Banks or B ranches on a p p l i c a t i o n therefor.
Tenders will be received with o u t deposit from incorpo r a t e d
banks and trust companies and f r o m r e s p onsible and r e c o g n i z e d
dealers in investment securities.
Tenders f r o m others m u s t be
accompanied by payment of 2 percent of the face a m ount of T r easury
bills a p p lied for, unless the tenders are a c c o m p a n i e d by express
guaranty of payment by an incorpo r a t e d b a n k or trust c o m p a n y .
Immediately after the closing hour, tenders w ill be opened at
the F e d e r a l Reserve Banks and Branches, f o l l o w i n g w h i c h public
announcement will be made b y the Sec r e t a r y of the T r e a s u r y of the
amount and price range of accepted b i d s . Those s u b m i t t i n g tenders
will be advised of the acceptanc e or r e j e c t i o n thereof.
The
Secretary of the Treas u r y e xpres s l y reserves the right to accept
or reject any or all tenders, in whole or in part, and his a c t i o n
in any such respect shall be final.
Subject to these reservations,
non-competitive tenders for $ 2 0 0 ,0 0 0 or less w i t h o u t stated price
from any one b i d d e r will be acce p t e d in full at the average price
(in three decimals) of accepted competitive bids.
Settle m e n t for
accepted tenders in accordance w i t h the bids m ust be m a d e or
completed at the F e d e r a l Reserve B a n k on July 20, 1950, in cash or
other immediately available funds or in a like face amount of
Treasury bills m a t u r i n g July 20, 1950*
C ash and E x c h a n g e tenders
2
Y ili ■recelve ec^u a ^ ‘treatment.
C ash a d j u stments will be m a d e for
differences b e t w e e n the par value of m a t u r i n g bills a c c e p t e d in
exchange and the issue price of the n e w bills .
The income derived from Trea s u r y bills, w h e t h e r interest or
g a m from the sale or other d i s p o s i t i o n of the bills, shall not
have any^exemption, as such, and loss from the sale or other
d i s p o s i t i o n of T r e a s u r y bills shall not have a n y ’special treatment
as such, under the Internal R e v e n u e Code, or laws 'amendatory or
supplementary thereto.
The bills shall be subject to estate,
inheritance, gift or other excise t a x e s ,.w h e t h e r F e d e r a l or State,
but shall be exempt from all taxa t i o n n o w or h e r e a f t e r imposed on
the princ i p a l or interest thereof by any State, or any of the
p ossessions of the Unit e d .States } or by any local t axing authority.
or purposes of t axation the amount of d i scount at w h i c h Treasure
bills are originally sold by the U n i t e d States shall be considered
to be interest.
U n d e r Sections .42 and 1 1 7 (a) (l) of the Internal
R e v enue Code, as a m e nded by S e c t i o n 115 of the Revenue A c t of 1941
the amount of discount at w h i c h bills issued h e r e u n d e r are sold
shall not be considered to accrue until such bills shall be sold,
redeemed or otherwise disp o s e d of, and such bills are e x cluded
from consid e r a t i on as capital a s s e t s . Accordingly, the owner of
Trea s u r y bills (other than life insurance companies) issued h e r e
under need include in his income tax r e t u r n only the d i fference
b e t w e e n the price paid for such bills, w h e t h e r on original Issue
or on subsequent purchase, and the amount actu a l l y received either
upon sale or r e d e m p t i o n at m a t u r i t y d u r i n g the taxable y e a r for
w h i c h the r e turn is made, as o rdinary g ain or loss.
Trea s u r y Depar t m e n t Circ u l a r No. 4l8, as amended, and this
notice, presc r i b e the terms of the T r e a s u r y bills and go v e r n the
conditions of their issue.
Copies of the circular m a y be obtained
from any F e d eral R e s erve B a n k or Branch.
0 O0
•'.T*'
5
- ^
3
July 10, 1950
TO ME. BARTELTj
The following transactions were made in direct and guaranteed
securities of the Government for Treasury Investment and other
accounts during the month of June, 1950:
Purchases •#•#*••#•*...»*****#•*. f7)473|300
SalCS •».**««••••»•••••••*•*•••.■*
let Purchases ............. .
15,120,750
(Sgd.) E. 0. Barnes
Chief, Division of Investments
CO
ill
«~î
Statement No. 36
Treasury Department
Division of Investments
KWisecarver/bec 7A0/50
7
T R E A S U R Y
D EP A R T M EN T
RELEASE MORNING NEWSPAPERS,
Saturday, July 15? 195 0 .__
v
'
\
S-2397
'
v?
During the month of June 1950 ,
market transactions in direct and
guaranteed securities of the
Government for Treasury investment
and other accounts resulted in net
purchases of $ 5 ,12 0 *7 5 0 , Secretary
Snyder announced today.
0O0
2 "The bell w i/l be i d e n t i c a l ^ L t h the
ones w h i c h
Mrere cast at A n n / c y - l e ~
V i e u x f o r / d i s p l a y in y o u r i n d e p e n d
ence B o n £ D r i v e .
" R e q u e ^ y o u to m a k e
ment
proper a n n o u n c e
cii J u l y 14, B a s t i A e Day., since
on tils d a y the thougl^s
of F r e n c h
people turn to that sime f r e e d o m for
w h i c n the L i b e r t y
BelfL stands."
It w as l e a r n e d f r o m the bell f o u n d r y of Les
F i l s de G e o r g e s P a c c a r d at A n n e c y - l e - V i e u x that
the bell w i l l be d e l i v e r e d at I n d e p e n d e n c e
Sep t e m b e r .
in
The P a c c a r d f i r m also p r o d u c e d the
I n d e p e n d e n c e B o n d D r i v e bells.
S e c r e t a r y S n y d e r sai d he h a d a d v i s e d M a y o r
T
W C n if7*
of I n d e p e n d e n c e ,
Mis s o u r i ,
of the
i n t e n d e d gift b y the p e o p l e of A n n e c y - l e - V i e u x ,
a n d that M a y o r
a p pre c i at i o n .
W & A y p
f
pu,
fin e x p r e s s e d w a r m
life
In recognition of the historic significance of the Liberty Bell as
an emblem of freedom, the people of Annecy offer a reproduction of this
bell to the people of Independence, Missouri.
IrC
-They have chosen the oity of Independence because of its name, and
also because it has become so '■ell known as the home of President Truman.
' The bell will be identical with those which were cast at Annecy for
display in your* Independence Bond Drive.
'' We request you to make proper announcement on July 14, the anniversary
of the taking of the Bastille, since on this day our thoughts turn to that
same freedom of which the Liberty Bell is the symbol.
IMME D I A T E R E L E A S E .
Friday, J u l y 14, 1950.
The people of I n d e p e n d e n c e , Missouri, will
receive a L i b e r t y Bell r e p r o duction as a gift
Haute Savoie,
f r o m the F aagS^TTc of Annecy-le-Vieux,/France,
where 53 L i b e r t y Beil
were cast for
d i s p l a y in the U n i t e d States during the recent
I n d e p endence B o n d Drive.
S e c r e t a r y Snyder m a d e this announcement t o
day, after receiving from.
A n n e c y - l e - V ie u x a cablegram telling of the
t o w n s p e o p l e ’s intention.
The cablegram ^ead:
i
’’E x p r e s s i n g understanding anc^ a p p r e c i a
tion b y the pfeople of Anne c ^ l e -Vieux
of the historic significance of the
L i b e r t y Bell as a symbol <j£ the spirit
of f r e e d o m / we w i s h to present a r e
p r o d u c t i o n of the bell 7 0 the people
of Independence, Missouri.
”We h a v e # s e l e c t ed Independence because
its n a m ® is so appropriate and it is
so widafLy k nown as t#ie home of P r e s
ident Truman.
'■"v-C
T R E A S U R Y
D EP A R T M EN T
Information Service
WASHINGTON, D.C.
IMMEDIATE RELEASE,
F r i d a y , July_lj; i_1950£
S-2 3 9 8
The people of Independence, Missouri, w ill receive a
L i b e r t y Bell r e p r o d u c t i o n as a gift f rom the people of
Annecy-le-Vieux, H aute Savoie, France, where 5 3 L i b e r t y
B e l l reproductions were cast for d i s p l a y in the U n i t e d States
d u r i n g the recent Independence B o n d D r i v e .
S e cretary Snyder made this a n n o u n c e m e n t today, after
recei v i n g from the city of A n n e c y - l e - V i e u x a c a b legram
telling of the townspeople's intention.
The cablegram,
translated, read:
"In^ r e c o g n i t io n of the h i s t o r i c significance
of the L i b e r t y B e l l as an e m b l e m of freedom, the
people of A n n e c y offer a r e p r o d u c t i o n of this bell
to the people of Independence, Missouri.
"We have chosen the city of Independence b e c ause
of its name, and also b e c ause it has b e c o m e so well
k nown as the home of President Truman.
"The bell will be identical w i t h those w h i c h
were cast at A n n e c y for d i s p l a y in y o u r Independence
Bond D r i v e .
"We request y o u to m a k e p r o p e r a n n o u n c e m e n t on
July 14, the a n n iversa r y of the taking of the
Bastille, since on this day our thoughts t urn to that
same freedom of w h i c h the L i b erty B e l l is the symbol.
The City of Annecy"
It was learned from the bell f o u ndry of Les Fils de
Georges Paccard at A n n e c y - l e - V i e u x that the bell w ill be
d e l i v e r e d at Independence in September.
The P a c c a r d firm
also p r o d u c e d the Independence B o n d Dri v e bells.
S e cretary Snyder said he had a d v i s e d M a y o r Robert P.
Weatherford, Jr. of Independence, Missouri, of the intended
gift by the people of Annecy-le-Vieux, and that M a y o r
W e a t h e r f o r d expressed w a r m appreciation.
0O0
/
RELSAj S MCffllffiS HBSSPAPËKS,
Tuesday, July 18. 1950.____
2
5
1 7
the Secretary of the Treasury announced last evening that the tenders for
11,000,000,000, or thereabout», of 91-day Treasury bills to be dated July 20 and
to mature October 19, 1950, which were offered on July 13, were opened at the
Federal Eeserve Banks on July 17*
The details of this issue are as foliar»:
Total applied for «• §2**725 ,392,000
_
Total aeeented
- 1,003-,625,000 (includes &L12,S79,GGG entered on a non^
competitive basis and accepted in full
at the average price shown below)
Average price
- 9f.?©4 Equivalent rate of discount approx. 1.173# per annua
Range of accepted con^titive bias: (Excepting two tenders totaling «800,000)
- 99.707 "Xjuivalent rate of discount approx. 1.159% per annus
„ 99.702
«
«
n
r
»
»
1.179# tt
"
High
Low
( 24 percent of the amount bid fbr at the low price was accepted;
Applied for
Total
Accepted
f
|
Total
Federal Reserve
District
15,716,000
1,236,885,000
31,255,000
$7,791,000
7,160,000
10,343,000
201,152,000
17,381,000
5,835,000
2 3 ,923,(XX)
5 0 ,yb7 ,ooo
66.984.000
Boston
Hew fork
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Total
11,725,392,000
15,216,000
650,659,000
14,707,000
56,859,000
6,780,000
9,279,000
1 3 7 ,912,000
15,105,000
5,735,000
20,948,000
31,789,000
36,636,000
«1,003,625,000
47$
REIEASE M O R N I N G NEWSPAPERS,
Tuesday, July l8, 195 0 ^ ____
S-2399
The Secretary of the T rea s u r y a n n o u n c e d last e v e n i n g that the
tenders for $1,000,000,000, or thereabouts, of 91 - d a y Trea s u r y bills
to he dated July 20 and to m a t u r e October 19, 1950, w h i c h were
offered on July 13, were opened at the F e d e r a l Reserve Ban k s on
July 17.
The details of this issue are as follows:
Total applied for - $1,72 5 , 3 9 2 , 00 0
1 ,003,625,000 (includes $ 1 1 2 ,8 7 9 ,000
Total accepted
entered on a n o n - c o m p e t i ti v e
basis and acce p t e d in f u l l ,
at the average price shown
below)
A v e r a g e price
- 9 9 .7 0 4 E q u i v a l e n t rate of dis c o u n t approx,
1.173$ per a n n u m
R a n g e of accepted competitive bids:
High
(Excepting two tenders
tota l i n g $ 8 0 0 ,0 0 0 )
- 99.707 E q u i v a l e n t rate of d iscount approx
1 .1 5 9 $ p e r ann u m
- 99.702 E q u i v a l e n t rate of d i scount approx
1 .1 7 9 $ per annum.
Low
(24 percent of the- amount bid for at the low price was accepted)
$
Bo ston
New York
Philadelphia
Cleveland
Richmond
Atlanta.
Chicago
S t . Louis
Minneapolis
Kansas City
Dallas
San F r ancisco
1 5 ,716,000
1 , 236, 885,000
31 ,255,000
57.79 1 . 0 0 0
7 .1 6 0 .0 0 0
1 0 .343.000
2 0 1 , 152,000
17 .381.000
T O TAL
Total
Accepted
Total
A p p l i e d for
Federal Rese r v e
D i s t r i c t ______
5.835.000
2 3 .9 2 3 . 0 0 0
5 0 .9 6 7 . 0 0 0
6 6 .9 8 4 . 0 0 0
$ 1 ,7 2 5 ,3 9 2 ,0 0 0
0O0
$
15,216, 000
650,659, 000
1^,707, 000
56,859, 000
6 ,780 , 000
9 ,2 7 9 , 000
1 77 ,9 1 2 , 000
15,105, 000
c7, (0
7 Q CJ,3 000
20,948, 000
31,789, 000
38, 636, 000
$ 1 ,0 0 3 ,6 2 5 , 0 0 0
- 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 l±2
and 11? fa) (1) of the Internal Revenue Code, as amended by Section ll£ 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, 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 terins 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 27, 19^0
, in cash or other immediately avail-
July 2?» 1950
able funds or in a like face amount of Treasury bills maturing
—
Cash and exchange tenders will receive equal treatment.
—
Cash adjustments will be
made for differences between the par value of maturing bills accepted in exchange
and the issue price of the new bills.
The income derived from Treasury bills, whether interest or gain from the sale
or other disposition of the bills, shall not have any exemption, as such, and loss
from the sale or other disposition of Treasury bills shall not have any special
treatment, as such, under the Internal Revenue Code, or laws amendatory or supplemen
tary thereto.
The bills shall be subject to estate, inheritance, gift or other
excise taxes, whether Federal or State, but shall be exempt from all- taxation now
or hereafter imposed on the principal or interest thereof by any State, or any of
the possessions of the United States,* or by any local taxing authority.
For
mœœüon
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Thursday, July 20, 19$0»
The Secretary of the Treasury, by this public notice, invites tenders for
$ l y000*000>000
91 -day Treasury bills, for cash and
} or thereabouts, of
PS
in exchange for Treasury bills maturing
July 27
"1950
, 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 27, 19$0
, and
:
--------------- ------------------------------ —
will mature
interest.
October 26, 19f>0
> when the face amount will be payable without
They will be issued in bearer form only, and in denominations of
Tenders will be received at Federal Reserve Banks and Branches up to the
Daylight Saving
closing hour, two o 1clock p.m., Eastern/sKSBKlaffidt time, Monday, July 2k9 1950
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
T R E A S U R Y
D EP A R T M EN T
Information Service
RELEASE MORNING NEWSPAPERS
T h u r s day,
.__ '
W ASHINGTON, D .C .
S-2400
T h e S e c r e t a r y o f the T r e a s u r y , b^y this p u b l i c »
no, t,iXUOj
ce, ^
invites
te n d e r s f o r $ 1 , 0 0 0 , 0 0 0 , 0 0 0 , or t h e r e a b o u t s , of 9 1 - d a y T r e a s u r y
for. c a s h a n d in e x c h a n g e f o r T r e a s u r y b i l l s m a t u r i n g
J u l y 2 7 , 1 9 5 0 , to be i s s u e d o n a d i s c o u n t b a s i s u n d e r c o m p e t i t i v e
ana n o n - c o m p e t i t i v e b i d d i n g as h e r e i n a f t e r p r o v i d e d .
The b i l l s of
this s e r i e s w i l l . b e d a t e d J u l y 2 7 , 1950, and w i l l m a t u r e O c t o b e r 26
^ S O , W h e n the face a m o u n t w i l l b e p a y a b l e w i t h o u t interest..
They
driAb e a r e r
only, a n d in d e n o m i n a t i o n s of $ 1 , 0 0 0
$5,000, $ 1 0 , 0 0 0 , $ 1 0 0 , 0 0 0 , $ 5 0 0 , 0 0 0 , a n d $ 1 , 0 0 0 , 0 0 0 ( m a t u r i t y v a l u e )
T e n d e r s w i l l be r e c e i v e d at F e d e r a l R e s e r v e - B a n k s a n d ' B r a n c h e s
the c l o s i n g hour, two o c l o c k p . m . , E a s t e r n D a y l i g h t S a v i n g
time, M o n d a y , J u l y 24, 1 9 5 0 . T e n d e r s w i l l n o t be r e c e i v e d at the
Treasury Department, Washington.
E a c h t e n d e r m u s t be fo r a n e v e n
m u l t i p l e of $ 1 , 0 0 0 , an d in the case of c o m p e t i t i v e t e n d e r s the
?i’l c e J.if f e r e d m u s t be e x P r e ss ed on the b a s i s of 100, w i t h n o t m o r e
than t h r e e d e c i m a l s , e. g., 9 9 . 9 2 5 .
F r a c t i o n s m a y n o t be used*
It
is u r g e d t h at t e n d e r s be m a d e o n the p r i n t e d forms' a n d f o r w a r d e d
in the s p e c i a l e n v e l o p e s w h i c h w i l l be s u p p l i e d b y F e d e r a l ReserveBa nk s or B r a n c h e s o n a p p l i c a t i o n t h e r e f o r . ’
•
t0
T e n d e r s w i l l be r e c e i v e d w i t h o u t d e p o s i t f r o m i n c o r p o r a t e d
banks a n d tr us t c o m p a n i e s a n d f r om r e s p o n s i b l e aind r e c o g n i z e d
e a l e r s i n i n v e s t m e n t .securities.
T e n d e r s f r o m o t h e r s m u s t be
a c c o m p a n i e d b y p a y m e n t of 2 p e r c e n t of the fa ce a m o u n t of T r e a s u r y
bills a p p l i e d for, u n l e s s the t e n d e r s a r e a c c o m p a n i e d b y a n ' e x p r e s s
g u a r a n t y of p a y m e n t b y a n . i n c o r p o r a t e d b a p k or t r u s t c o mp an y.
..
I m m e d i a t e l y after., the c l o s i n g ho ur , t e n d e r s w i l l be o p e n e d at
the F e d e r a l R e s e r v e B a n k s a n d B r a n c h e s , f o l l o w i n g w h i c h n u b i l e •
a n n o u n c e m e n t w i l l b e m a d e b y the S e c r e t a r y of the T r e a s u r y of -the
am ou nt a n d p r i c e r a n g e of a c c e p t e d b i ds . T h o s e s u b m i t t i n g t e n d e r s
• i n De a d v i s e d of the a c c e p t a n c e or r e j e c t i o n th e r e o f .
Th e
S e c r e t a r y o f the T r e a s u r y e x p r e s s l y r e s e r v e s the r i g h t to a c c e p t or
reject a n y or a l l te nd er s, in w h o l e or i n part, a n d h i s a c t i o n i n
ny s u c h r e s p e c t s h a l l be fi na l.
Subj'ect to t h e s e r e s e r v a t i o n s
n o n - c o m p e t i t i v e t e n d e r s for $ 2 0 0 , 0 0 0 or le ss w i t h o u t s t a t e d p r i ^ e
trom a n y one b i d d e r w i l l be a c c e p t e d in f u l l at the a v e r a g e p r i c e
2
(in three decimals) of accepted competitive bids.
Settlement for
a ccepted tenders in accordance w i t h the bids m u s t be made or
completed at the Fede r a l R e s erve B a n k on July 27, 1950, in cash or
other immediately available funds or in a like face amount of
Treas u r y bills m a t u r i n g July 27, 1950.
Cash and exchange tenders
w i l l receive equal treatment.
Cash adjustments w i l l be m a d e -for
differences b e t w e e n the par value of m a t u r i n g bills a c c e p t e d in
exchange and the issue price of the n e w bills..
The income derived from Trea s u r y bills, w h e t h e r interest or
gain from the sale or other d i s p o s i t i o n of the bills, shall not
have any. exemption, as such, and loss f rom the sale of other
d i s p o s i t i o n of Treasury bills shall not h ave any special treatment,
as such, under the Internal R e v e n u e Code, or laws a m e n d a t o r y or
supplementary t h e r e t o . The bills shall be subject to estate,
inheritance, gift or other excise taxes, w h e t h e r F e d e r a l or State,
but shall be exempt from all t a x a t i o n n o w or h e r e a f t e r ahnposed on
the p r incipal or interest thereof b y any S.tate, or any of the
possessions of the U n i t e d States, or by any local taxing authority.
For purposes of t axation the amount of d i scount at w h i c h Treasury
bills are originally sold by the U n i t e d States shall be considered
to be interest.
U n d e r Sections 42 and 117 (a ) (l)
Internal
Reve n u e Code, as amended by S e c t i o n 115 of the R e v enue A c t of 1941,
the amount of d iscount at w h i c h bills issued h e r e u n d e r are sold .
shall not be considered to accrue until such bills shall be sold,
redeemed or otherwise disp o s e d of, and such bills are e x cluded
from consid e r a t i on as capital assets.
Accordingly, the owner of
T reasury bills (other than life insurance companies) issued here
under n e e d include in his income tax re t u r n only the difference
b e t w e e n the price paid for such bills, w h e t h e r on original issue or
on subsequent purchase, and the amount a c t u a l l y rece i v e d either
upon sale or r e d e m p t i o n at m a t u r i t y d u r i n g the taxable y e a r for
w h i c h the r e t u r n is made, as ordinary g a i n or loss.
Treas u r y D e p a r t m e n t C i rcular No. 4l8, as amended, and this
notice, p r escribe the terms of the T r e a s u r y bills and g o v e r n the
conditions of their issue.
Copies of the circular m a y be obtained
from any Federal Reserve B a n k or Branch.
oOo
Use Information Service Stationery
IMMEDIATE RELEASE
Friday« July 21, 1950
iO
S-
Secretary Snyder announced today that sales of Series E Savings
Bonds in the Independence Drive amounted to $716,013,000.
The sales
thus equaled 110 per cent of the announced quota of $650,000,000.
The Drive began May 15 and ended July A, with the accounting
period extended to July 17 to permit receipt of full reports from
banks and other selling agencies throughout the country.
The Drive was intended as a stimulant to regular sales in the
Savings Bonds Program.
Secretary Snyder said he regarded the results
of the Drive as being indicative of continued public support for the
Program, as an encouragement to thrift and as an incentive to intensified
interest in the Government.
The Secretary added that success of the Drive was due primarily
to the work of the thousands of volunteers who gave it their energetic
support.
T R E A S U R Y
D EP A R T M EN T
Wa s h i n g t o n ,
Information Service
IMMEDIATE RELEASE,
F r i d ay, July 2 1, 1 9 5 0 »
d .c
.
S-2401
Secretary Snyder ann o u n c e d today that sales
of Series E Savings Bon d s in the I n dependence
D r ive a mounted to $716*013,000.
Th® sales thus
equaled 1 1 0 p e r cent of the a n n o u n c e d quota of
$650,000,000.
The Drive b e g a n M a y 15 and ended July k,
w i t h the a c c o u n t i n g p e r i o d e x t e n d e d to July 17
to p e rmit receipt of full reports from banks
and other selling agencies throughout the country
The D r i v e was i n tended as a stimulant to
regular sales in the Savings Bonds Program.
Secretary Snyder said he rega r d e d the results
of the Drive as b e i n g indicative of continued
public support for the Program, as an e n c o u r a g e
m e n t to thrift and as a n incentive to i n t e n
sified interest in the Government.
The Secretary add e d that success of the
D r ive was due prim a r i l y to the w o r k of the
thousands of volunteers who gave it their
energetic s u p p o r t .
0 O0
mrnnm
I s s t e fete m * aiSi
hslxass
s,
-
fill Secretary of the Treasury announced last evenly thf# the tenders for
$1,000,000,000, or thereabouts, of 91-day Treasury bills to be dated .July 2? and to
stature October 26, 195®# which were offered on J^uly 20, were opened at the federal Re
serve leaks oa *fuly 2b-.
the details of this issue are ae followst
total a p p l i e d for - $ 1 , 9 9 6 , 1 2 8 , 0 0 0
total accepted
** 1,001,318,000
Average price
(includes $103*646,000 e n t e r e d © a a n o n
c o m p e t i t i v e b a s i s a n d a c c e p t e d in full
a t the a v e r a g e pr i c e s h o w n below)
- 9 9 * 7 0 3 / E q u i v a l e n t r a t e o f d i s c o u n t approx* 1 * 1 ? 4 $ p e r annum
Bangs o f a c c e p t e d c o m p e t i t i v e bides
High
- 9 9 * 7 0 9 E q u i v a l e n t r a t e o f d i s c o u n t approx*
1 . 1 5 9 $ p e r annum
how
- 99.7®2
1,199$ *
•
•
(70 p e r c e n t o f the a m o u n t b i d for at the l o w p r i c e wa s accepted)
Federal Reserve
district
total
total
Acefpted
Boston
Sew York
Philadelphia
Cleveland
Klchfsond
Atlanta
Chicago
St* louts
Minneapolis
Kansas City
Dallas
San Francisco
$
$
fom
17.195.ooo
1,302,508,000
3 0 ,860,000
7 9 .075,000
5,352,800
9 ,599,000
180,773.000
15.553,000
4,060,000
29,399,000
32,640,000
69.16».OO0
$1,776,128,000
1 6 ,695,000
6 3 7 .258,000
16,670,000
7 6 ,fr?5 ,ooo
5.35E#ooo
9 ,219,000
1*6 ,323,000
13.533*000
4 ,030,000
2 6 ,799,000
16,710,000
T2.26ft.00Q.
$1 ,001,318,000
7
R E LEASE M O R N I N G NEWSP A P E R S
T u e s d ay, July 25, ..,1950.:____
S-2402
The Secretary of the Trea s u r y an n o u n c e d last e v e n i n g that the
tenders for $ 1 ,0 0 0 ,0 0 0 ,0 0 0 , or t h e ^ b °u t a Afio f 1 ^ Q daL i o h avere 131113
to be d ated July 27 and to m a t u r e Octo b e r 26, 1950, w h i c h were
o f fered on July 20, were opened at the F e d e r a l Rese r v e B a n k s on
July 24.
The details of this issue are as follows:
T o tal applied for - $ 1 ,7 7 6 ,1 2 8 ,0 0 0
T o tal accepted
- 1 ,0 0 1 ,3 1 8 , 0 0 0
A v e r a g e price
e y
(includes ^ ° 3 , 6 4 6 000
ente r e d on a non-competitive
basis and a c c e p t e d in full
at the average price shown
below)
- 9 9 - 7 0 3 / E q u i v a l e n t rate of disc o u n t approx.
1.174$ per a n n u m
Range of accepted competitive bids:
- 9 9 . 7 0 7 E q u i v a l e n t rate of disc o u n t approx.
1.159$ P er a n n u m
- 99.702 E q u i v a l e n t rate of discount approx.
High
Low
( 7 0 perce nt of the amount bi d for at the low price was accepted)
Total
A p p l i e d for
F ede r a l Rese r v e
D istrict________
Boston
New York
P h i l a delphia •
Cleveland
R ichm o n d
Atlanta
Chicago
S t . Louis
Minneapolis
Kansas C ity
Dallas
San Francisco
T OTAL
$
17,195 , 0 0 0
1 , 3 0 2 ,508,000
3 0 ,8 6 0 ,0 0 0
79.075.000
5.352.000
9 .5 4 9 .0 0 0
180,7 7 3 , 0 0 0
15.553 . 0 0 0
4.060.000
29.399.000
32.640.000
69.164.000
$ 1 , 7 7 6 , 1 2 8 , 00 0
oOö
Tot a l
______A c c e p t e d
$
16,695,000
637.258.000
16 ,670,000
76.475.000
5.352.000
9.219.000
146. 3 2 3 . 0 0 0
13.523.000
4.030.000
26.799.000
16 .710.000
32,264,000
$ 1 , 001 , 318,000
3
The report also reviews Council c o n s i d e r a t i o n of
economic assistance to China, J a p a n and K o r e a and
points out that a mong the loans on w h i c h the Expo r t Import B a n k consulted w i t h the Council d u r i n g the
p e r i o d were those to Indonesia, Afghanistan,
Saudi-Arabia,
and Yugos l a v i a .
The p o r t i o n of the report d e a l i n g w i t h the
International M o n e t a r y F u n d and the Inter n a t i o n al B a n k
for R e c o n s t r u c t i o n and D e v e l o p m e n t is concerned
prim a r i l y w i t h their financial a c t i v i t i e s .
Fund
currency sales to M a r c h 31, 1950 totaled the equivalent
of approx i m a t e ly $784 m i l l i o n and the B ank's o u t s t a n d
ing loan commitments as of that date were a p p r o x i m a t e ly
$738 million.
Details as to l o a n and exchange
transactions of the B a n k and F u n d d u r i n g the period,
as well as overall summaries, are included.
As in the past the current six-months'
report of
the Council includes a c o mprehensive statistical
a p p e n d i x w h i c h contains d e t a i l e d analysis of various
aspects of the United States Government's p o s t w a r
f o r e i g n a s s istance programs, as well as of gold
transactions with leading c o u n t r i e s .
oOo
2
total of a p p r o x i m a t e l y $26 b i l l i o n of U n i t e d States
Government f o r e i g n aid -- t h r ough D e c e m b e r 31* 19^9 -almost three-fourths was p r o v i d e d to E R P p a r t i c i p a n t s ,
w i t h A s i a the g e ograp h i c a l a r e a r e c e i v i n g the next
largest share.
The Council note d that a l t h o u g h 'foreign gold and
d o llar reserves,
e x c l u d i n g the gold hold i n g s of the
USSR, d eclined about $4.5 b i l l i o n from July 19^5 to
D e c e m b e r 19^9,
there was a m a r k e d r eversal of the
previous p o s t w a r trend d u r i n g 1 9 ^9 , w h i c h res u l t e d in
an increase d u r i n g that y e a r of abo u t $ 3 5 0 m i l l i o n in
f o r e i g n m o n e t a r y reserves .
D u r i n g the p o s tw a r p e r i o d U n i t e d States private
investments abroad rose f rom about $ 1 5 b i l l i o n to
$19 b i l l i o n while U n i t e d States G o vernment investments
increased from a p p ro x i m a t e ly $2 b i l l i o n to $ 1 3 - 1 / 2 billion,
the report stated.
In contrast,
f o r e i g n assets in the
U n i t e d States h ave shown little change and have
fluctuated around a level of $17 billion.
As of
D e c e m b e r 31* 19^9 A m e r i c a n - o w n e d assets in f o r e i g n
countries exceeded f o r e i g n - o w n ed assets in the
U n i t e d States by m or e t h a n $15 billion.
The financial aspects of the E u r o p e a n R e c o v e r y
P r o g r a m reviewed by the report include E C A grant and
loan assistance,
funds,
the use of local currency counterpart
the E C A guaranty p r o g r a m and the E u r o p e a n Payments
Union.
< ___
STANDARD FORM NO. 64
Office
Mémorandum■-•■ u n i t e d
to
:
Secretary Snyder
fro m
:
James J. Sax<
SUBJECT:
sta tes g o v er n m en t
DATE:
July 20, 1950
r /
For your approval.
The attached press release on the NAC.'s six-month
report has been cleared with the Office of International
Finance and Assistant Secretary Martin.
assistance,
the Council p o i n t e d out that the annual
amount of U n i t e d States f o r e i g n aid u t i l i z e d has not
varied greatly in the p o s t w a r period, a v e r a g i n g about
$5.8 b i l l i o n a y e a r since J uly 1945.
Of the p o s t w a r
ùjs
T R E A S U R Y
D EP A R T M EN T
Information Service
IMMEDIATE RELEASE
Tuesday, July 25, 1950
W ASHINGTON, D .C .
S-2403
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 ending March 31., 1950,
The report reviews briefly the main components of
the United States balance of payments in the postwar
period — foreign trade, government aid, and changes
in gold and dollar assets.
In each postwar year through 1949 the excess of
United States exports over imports has been over $6
billion. However, this excess was narrowed in the last
quarter of 1949 and the first quarter of 1950.
Devaluation of foreign currencies in relation to the
dollar appeared to be responsible in part for improve-^
ment in the balance of payments position^of the devaluing
countries including the ERP countries which were able
to increase the volume of their merchandise exports,
the Council reported.
Although there have been changing,programs of
assistance, the Council pointed out that^the annual
amount of United States foreign aid utilized^has not
varied greatly in the postwar period, averaging about
$5.8 billion a year since July 1945. Of the postwar
total of approximately $26 billion of United States
Government foreign aid -- through December 31, 1949 -almost three-fourths was provided to ERP participants,
with Asia the geographical area receiving the next
largest share.
The Council noted that although foreign gold and
dollar reserves, excluding the gold holdings of the
S e cretary Snyder, as C h a i r m a n of the N a t i o n a l
A d v i s o r y Council on I n t e r n a t i o n al M o n e t a r y and F i n a n c i a l
Problems,
today transmitted to the P r e s i d e n t and to the
Congr.e«s a report of the Council's activities d u r i n g the
six mont h s ending M a r c h 31, 1950.
The report reviews b r i e f l y the m a i n components of
the U n i t e d States bal a n c e of payments in the p o s t w a r
period —
foreign trade, govern m e n t aid, and changes
in gold and doll a r a s s e t s .
In each p o s t w a r y e a r through 19^9 the excess of
U n i t e d States exports over imports has b e e n over $6
billion.
However,
this excess was n a r r o w e d in the last
quarter of 1 9 ^ 9 and the first quarter of 1 9 5 0 .
D e v a l u a t i o n of foreign currencies in r e l a t i o n to the
d o l l a r appeared to be r esponsible in part for i m p r o v e
ment in the balance of payments p o s i t i o n of the d e v a l u i n g
countries including the E R P countries w h i c h w ere able
to increase the volume of their m e r c h a n d i s e exports,
the C o u ncil r e p o r t e d .
A l t h o u g h there have b e e n chan g i n g prog r a m s of
assistance,
the Council p o i n t e d out that the annual
amount of U n i t e d States f o r e i g n aid u t i l i z e d has not
varied greatly in the p o s t w a r period, a v e r a g i n g about
$5.8 b i l l i o n a y e a r since J uly 19*1-5.
Of the p o s t w a r
y>*
LG
-
2
-
USSR, declined about $4.5 billion from July 1945 to
December 1949, there was a marked reversal of the
previous postwar trend during 1949, which resulted in
an increase during that year of about $350 million in
foreign monetary reserves.
During the postwar period United States private
investments abroad rose from about $15 billion to
$19 billion while United States Government investments
increased from anproximately $2 billion to $13*1/2 billion,
the report stated* In contrast, foreign assets in the
United States have shown little change and have
fluctuated around a level of $17 billion.^ As of^
December 31, 1949, American-owned assets in foreign
countries exceeded foreign-owned assets in the United
States by more than $15 billion.
The financial aspects of the European Recovery
Program reviewed by the report include ECA grant and
loan assistance, the use of local currency counterpart
funds, the ECA guaranty program and the European Payments
Union.
The report also reviews Council consideration of
economic assistance to China, Japan and Korea and
points out that among the loans on which the ExportImport Bank consulted with the Council^during the^
period were those to Indonesia, Afghanistan, Saudi Arabia,
and Yugoslavia.
The portion of the report dealing with the
International Monetary Fund and the International Bank
for Reconstruction and Development is concerned
primarily with their financial activities. Fund cur
rency sales to March 31, 1950 totaled the equivalent
of approximately $784 million and the BankTs outstand
ing loan commitments as of that date were approximately
$738 million.
Details as to loan and exchange trans
actions of the Bank and Fund during the period, as well
as overall summaries, are included.
Vf*
- 3 As in the past the current six-months’ report of
the Council includes a comprehensive statistical^
appendix which contains detailed analysis of various
aspects of the United States Government’s postwar
foreign assistance programs, as well as of gold
transactions with leading countries.
0O0
- 3 -
any S ta te , or any of the possessions of the United S ta te s, or by any lo c a l ta x
ing au th o rity.
For purposes of taxation the amount of discount at which
Treasury b i l l s are o r ig in a lly sold by the United S ta te s s h a ll be considered to
be in te r e s t.
Under Sections l\2 and 117 (a) (1) of the In tern al Revenue Code,
as amended by Section Ilf? of the Revenue Act of 19ifL, the amount of discount at
which b i l l s issued hereunder are sold s h a ll not be considered to accrue u n til
such b i l l s s h a ll be sold , redeemed or otherwise disposed o f, and such b i l l s are
excluded from consideration as ca p ita l a s s e ts .
Accordingly, the owner of
Treasury b i l l s (other than l i f e insurance companies) issued hereunder need in
clude in h is income tax return only the difference between the price paid fo r
such b i l l s , whether on o rigin a l issue or on subsequent purchase, and the amount
a ctu a lly received eith er upon sale or redemption at m aturity during the taxable
year fo r which the return i s made, as ordinary gain or lo s s .
Treasury Department Circular No. Ul8, as amended, and th is n o tice , prescribe
the terms of the Treasury b i l l s and govern the conditions of th e ir issu e .
of the circu la r may be obtained from any Federal Reserve Bank or Branch.
Copies
-
2
-
mm
unless the tenders are accompanied by an express guaranty of payment by an in
corporated bank or trust company.
Immediately after the closing hour, tenders will be opened at the Federal
Reserve Banks and Branches, following which public announcement will be made by
the Secretary of the Treasury of the amount and price range of accepted bids.
Those submitting tenders will be advised of the acceptance or rejection thereof.
The Secretary of the Treasury expressly reserves the right to accept or reject
any or all tenders, in whole or in part, and his action in any such respect shall
be final.
Subject to these reservations, non-competitive tenders for £200,000
or less without stated price from any one bidder will be accepted in full at the
average price (in three decimals) of accepted competitive bids.
Settlement for
accepted tenders in accordance with the bids must be made or completed at the
Federal Reserve Bank on
August jL 1950
> 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 3, 19$0.
$§3E
Cash adjustments will bef
made for differences between the par value of maturing bills accepted in exchangf
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.
gift
The bills shall be subject to estate, inheritance,
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
H»
TREASURY DEPARTMENT
Washington
/
FOR RELEASE, MORNING NEWSPAPERS,
Thursday, July 2?, 1950________ •
The Secretary of the Treasury, by this public notice, invites tenders for
$ 1,100,000,000 f or thereabouts, of
------
in exchange for Treasury bills maturing
91
gr
-day Treasury bills, for cash and
August 3, 1950
, 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 3* 1950
, and
.-.----------------, when the face amount will be payable without
—
will mature
interest.
November 2, 1950
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 ,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/TOQ®tSK?ixtime, Monday, July 31. 1950 »
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 , vdth not more than three
decimals, e. g., 99.925.
Fractions may not be used.
It is urged that tenders
be made on the printed forms and forwarded in the special envelopes ’which will
be supplied by Federal Reserve Banks or Branches on application therefor.
Others than banking institutions Td.ll not be permitted to submit tenders
except for their own account.
Tenders will be received without deposit from
incorporated banks and trust companies and from responsible and recognized
dealers in investment securities.
Tenders frcm others must be accompanied
by payment of 2 percent of the face amount of Treasury bills applied for,
RELEASE MORNING NEWSPAPERS,
T h u r sday, J u l y 2 7, '1950.
S-24o4
T h e S e c r e t a r y of the T r e a s u r y , b y this p u b l i c n o t i c e , invites,
t e n d e r s fo r ¿ 1 , 1 0 0 , 0 0 0 , 0 0 0 , or t h e r e a b o u t s , of 9 1 - d a y T r e a s u r y b i ll s,
for c a s h and i n e x c h a n g e fo r T r e a s u r y b i l l s m a t u r i n g A u g u s t 3, 1950,
to be i s s u e d o n a d i s c o u n t b a s i s u n d e r c o m p e t i t i v e a n d n o n
c o m p e t i t i v e - b i d d i n g as h e r e i n a f t e r p r o v i d e d .
The b i l l s of this
s e ri es w i l l b e d a t e d A u g u s t 3, 1950, a n d w i l l m a t u r e N o v e m b e r 2, 1950,
w h e n the f a c e a m o u n t w i l l be p a y a b l e w i t h o u t i n t e r e s t .
They will be
i s s u e d i n b e a r e r f o r m only, a n d i n d e n o m i n a t i o n s of $ 1 , 0 0 0 , .$5 * 0 0 0 ,
$ 1 0 , 0 0 0 , $ 1 0 0 , 0 0 0 , $ 5 0 0 , 0 0 0 , a n d $ 1 , 0 0 0 , 0 0 0 ( m a t u r i t y v a l u e ). . .
T e n d e r s w i l l be r e c e i v e d at F e d e r a l R e s e r v e B a n k s a n d B r a n c h e s
up to the c l o s i n g hour , two o ' c l o c k p . m v, E a s t e r n D a y l i g h t S a v i n g
time.,' M o n d a y , J u l y 3 I, 1950.
T e n d e r s w i l l n o t be r e c e i v e d at the
Treasury Department, Washington.
E a c h t e n d e r m u s t be f o r a n e v e n
m u l t i p l e of $ 1 , 0 0 0 , a n d . i n the case of c o m p e t i t i v e t e n d e r s the p r i c e
o f f e r e d m u s t be e x p r e s s e d on the b a s i s of 1 0 0 , w i t h n o t m o r e t h a n
t h r e e d e c i m a l s , e. g., 9 9 « 9 2 5 *
F r a c t i o n s m a y n o t be used .
It is
u r g e d t h at t e n d e r s b e m a d e o n the p r i n t e d f o r m s a n d f o r w a r d e d in the
s p e c i a l e n v e l o p e s w h i c h w i l l be s u p p l i e d b y F e d e r a l R e s e r v e -Banks or
Bran ch es on a p pl ic at io n therefor.
O t h e r s t h a n b a n k i n g i n s t i t u t i o n s w i l l n o t b e p e r m i t t e d .to s u b m i t
t e n d e r s e x c e p t fo r t h e i r o w n a c c o u n t . T e n d e r s w i l l b e r e c e i v e d w i t h
out d e p o s i t f r o m i n c o r p o r a t e d b a n k s a n d t r u s t c o m p a n i e s a n d f r o m
responsible and recognized dealers in investment s e c u r i t i e s . Tenders
f r o m o t h e r s m u s t b e a c c o m p a n i e d b y p a y m e n t of 2 p e r c e n t of the f a ce
a m o u n t of T r e a s u r y b i l l s a p p l i e d for, u n l e s s the t e n d e r s are
a c c o m p a n i e d b y a n e x p r e s s g u a r a n t y of p a y m e n t b y a n i n c o r p o r a t e d b a n k
or t r u s t c o m p an y.
I m m e d i a t e l y a f t e r the c l o s i n g hour, t e n d e r s w i l l be o p e n e d at
the F e d e r a l R e s e r v e B a n k s a n d B r a n c h e s , f o l l o w i n g w h i c h p u b l i c
a n n o u n c e m e n t w i l l be m a d e b y the S e c r e t a r y of the T r e a s u r y of the
a m o u n t a n d p r i c e r a n g e of a c c e p t e d b i d s . T h o s e s u b m i t t i n g t e n d e r s
w i l l be a d v i s e d of the a c c e p t a n c e or r e j e c t i o n t h e r e o f .
The
S e c r e t a r y of the T r e a s u r y e x p r e s s l y r e s e r v e s the r i g h t to a c c e p t or
r e j e c t a n y or a l l tenders, in w h o l e or i n part, .and h i s a c t i o n i n
a n y s u c h r e s p e c t s h a l l b e final.
S u b j e c t to t h e s e r e s e r v a t i o n s ,
n o n - c o m p e t i t i v e t e n d e r s f o r $ 2 0 0 , 0 0 0 or less w i t h o u t s t a t e d p r i c e
f r o m a n y one b i d d e r w i l l b e a c c e p t e d i n f u l l at the a v e r a g e p r i c e
2
(in t h r e e d e c i m a l s ) of a c c e p t e d c o m p e t i t i v e bi ds .
Settlement for
a c c e p t e d t e n d e r s i n a c c o r d a n c e w i t h the b i d s m u s t be m a d e or
c o m p l e t e d at the F e d e r a l R e s e r v e B a n k o n A u g u s t 3> 1950* i n c a s h or
o t h e r i m m e d i a t e l y a v a i l a b l e f u n d s or i n a l i ke f a ce a m o u n t of
T r e a s u r y b i l l s m a t u r i n g A u g u s t 3, 1950.
Cash and exchange tenders
will receive equal treatment.
Ca sh ad justments wi ll be ma de for
d i f f e r e n c e s b e t w e e n the p a r v a l u e of m a t u r i n g b i l l s a c c e p t e d i n
e x c h a n g e a n d the i s s u e p r i c e o f the n e w b i l l s .
T h e i n c o m e d e r i v e d f r o m T r e a s u r y b i l l s , w h e t h e r i n t e r e s t or
g a i n f r o m the sa le or o t h e r d i s p o s i t i o n of the b i l l s , s h a l l n o t
h a v e a n y e x e m p t i o n , as such, a n d l o s s f r o m the sa l e or o t h e r
d i s p o s i t i o n of T r e a s u r y b i l l s s h a l l n o t h a v e a n y s p e c i a l t r e a t m e n t ,
as such, u n d e r the I n t e r n a l R e v e n u e Code, or laws a m e n d a t o r y or
su pplementary thereto.
T h e - b i l l s s h a l l b e s u b j e c t to estate,
i n h e r i t a n c e , g i f t or o t h e r e x c i s e taxes, w h e t h e r F e d e r a l or State,
b u t s h a l l be e x e m p t f r o m a l l t a x a t i o n n o w or h e r a f t e r i m p o s e d o n
the p r i n c i p a l or i n t e r e s t t h e r e o f b y a n y State, or a n y of the
p o s s e s s i o n s of the U n i t e d States, o r b y a n y l o c a l t a x i n g a u t h o r i t y .
F o r p u r p o s e s of t a x a t i o n the a m o u n t of d i s c o u n t at w h i c h T r e a s u r y
b i l l s a r e o r i g i n a l l y s o ld b y t h e U n i t e d S t a t e s s h a l l b e c o n s i d e r e d
to b e i n t e r e s t .
U n d e r S e c t i o n s 42 a n d 117 (a ) (l) of the I n t e r n a l
R e v e n u e Code, as a m e n d e d b y S e c t i o n 115 of the R e v e n u e A c t of 1-941,
the a m o u n t of d i s c o u n t at w h i c h b i l l s i s s u e d h e r e u n d e r ar e s o l d
s h a l l n o t b e c o n s i d e r e d to a c c m i e u n t i l s u c h b i l l s s h a l l be sold,
r e d e e m e d or o t h e r w i s e d i s p o s e d of, a n d s u c h b i l l s are e x c l u d e d f r o m
c o n s i d e r a t i o n as c a p i t a l a s s e t s .
A c c o r d i n g l y , the o w n e r of T r e a s u r y
b i l l s ( o t h e r t h a n l i fe i n s u r a n c e c o m p a n i e s ) i s s u e d h e r e u n d e r n e e d
i n c l u d e i n h i s i n c o m e t a x r e t u r n o n l y the d i f f e r e n c e b e t w e e n the
p r i c e p a i d fo r s u c h b i ll s, w h e t h e r o n o r i g i n a l I s s u e o r o n
s u b s e q u e n t p u r c h a s e , a n d the a m o u n t a c t u a l l y r e c e i v e d e i t h e r u p o n
sale or r e d e m p t i o n at m a t u r i t y d u r i n g the t a x a b l e y e a r f o r w h i c h
the r e t u r n is m a d e , as o r d i n a r y g a i n or loss.
T r e a s u r y D e p a r t m e n t C i r c u l a r No, 4l8, as a m e n d e d , and this
n o t i c e , p r e s c r i b e the te rm s of the T r e a s u r y b i l l s and g o v e r n the
c o n d i t i o n s of t h e i r issue.
C o p i e s of the c i r c u l a r m a y be o b t a i n e d
f r o m a n y F e d e r a l R e s e r v e B a n k or B r a n c h .
oOo
@FedFRASER