The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
iteAiì.
5>;o *
X
U,^>.
^YV æ
«H
"Ive
ô
S
(F*/ et$es
RODIVI 5030
JUN
141972
TREASURY DEPARTMENT
(e) My M i t e ptifcH*h*d lMunnwkt M «aheeetlea
|%|' ibisllL 1» êmêm& to eotshlloh • uaifow i f rootle*
v i m ìa tho n o c la s o f ooetiea SIS* M r lf f M t of I f SO*
m ornadoá* fho SeeUioa *1U p l **
p *
fttH te t m U ag of Me Coaaiooleaor to lagose h t$ » r
i& tioe o» « l i tA e rtic i# aal#»» Mo p rio r decioiea
Mavid M ir# to h t eloorly vsooc« !Moä i t eppoer* to
Mo M M ü f M a correct iatorproM tioa of Mo
Im mm w#&âm m m e ru lin g aotloo M ot Mo f*M *
i i s io cade* revio* w ill M pcfcliehod la Mo J
l i t i B u iflc ? «e M ot Mo p a rtie i 1» lato re» ! v i l i
hswe oa opportmiity to »Mo m m v riH c a MMlooioö«
&$ thoy M i t vlIMa » period which vili ho epoei-*
-fits la Mo aotieo, with roopoet to tho ooffooMooo
3
eetloa. If after tho conoid#^
%lm of oooh sohsklooloao mi
ho received tho Co®**
sle elo a er loom#« o re lia n
high#* dotioo, i t
w ill ho effectiv e only on to merefcea&ieo eatered fo r
eoafueptlea o r wlthdfowa fro» warehouse fo r eoaeussptlo a oa o r a fte r Mo « ap iretica of 3 o days of to r Mo
doto of jo&Uootioa f f » I ralla n la Mo woot&ar
frmamx? £e#l#teae* f j j
ft) ffeo aotieo procedure eetliaed ia peranreph (o)
will ho applied oleo ia say other oooo la t t A the ^o»*
actftoiaoo* hellere« that a oorroet iaterpretotiea of tho
n u n
»
eam deoloaer of Caotoao
approved!
lfii«aedj
°
OCT 07t8fiO
jo^ í
n. &
W. âjnrasai
^oofotoiy of Mo freaoaiy
11* fM procedure outlined ia paragraph (©) i f aot oppile*hi# to ehoagoo required hy etetu tery «noeta«»*» Jodieial
decision* o r rro o id o atio l proeloaotloa.
«rft*
ft m % X m #f ita
if més i * i^tas ta* In #
$ ta il« ta i In M i
ta d « t« * £K£ Hm f ta tt i* In ta ta * « #
t» mfàmìt sfitte mw$§wm%àm mrnìm^ ita
.gitali #®i
mitici mMmfr mmm%èwm%%-m*
è® M m
fi m m&Mm tap&®iis§ ita Mgtar
te temi» Il giti* •# tanta«* mi te w t t m t t m m t i X
3 0 -i^
iii«t ita #*gpt$*ttatt #f M
-pwm%m%if
te* In il«» #f li#
iii# ti «f tei ftete#t te§«ta*
ttea* *f 19*3 Ctf <|gli teJPÉ li), In tester mmtèm& If % M & m P
m mtai«* Unita* «««éteg èÉ tette»®*
Unita tarllf ®te®t$fitaiten «f
(«) ter
!#£«&## #r timin»
fig in ditali t© te#
tep»»«®«.»
wr
#f /tentate* taMigt«* .*
ìfn &» % * te* # tettar m %m t$m tefiff
«f taf miètete «*&!«& ta Intasi# In tarati tate
«nifi %
ita tettai State# Im mwmm&®% ^Mutati*®* ita «ggiitap*
Itasi ta ti i# ^ l i a MI tataifltai ®f «ita «tal#!®*
tal «ippttaiii#mt a t i «&
*» fi»# tal Httataf
ita« tata«® il !« ntaif t a l
teteteteteg t a
Ìt) 'tal
11 »iti
te ®f *» tata* te
«i**tefl«*l£#a if tal «tetete*
m M tate** %$/
mterte&t #f tette Ipi m$%%M%® I#
% % m m te ita tetaf % n ini « m
M
flntiMta»
ta®tip#tte» in
t a tettai itete®t «te Ci) «sf «riiiitetttete®* u n t a i .
#f # t a F i s & m m M m è m m à mtmmmtf te & teiiff «Untata
fiatete* #f tal «tette®*
tamta^r fsnntai^t#-, * #»#p!«
*f Ita stette« litalé Wfteteltai »Ita tal i f f t a i l a .
Ut} I f ta t fte te tte « iite 1« ««ii*£i#t Ci) flÉ i ta l
.«$#lÌsi*itM 1« mém tu
Ém m lg & m $ m w ^ w
talta «g «a l^nrtar #r
nta i#
i^É Ultmitf <©
ìn ìì «Ia
«Ita ta 1mMti
Ci) taf ta*
%t ita »tat# «sisiieij)
n^taiitai #n ®Ummim
it# 1«
fs-r a
émlm$m$) m & ()} lèni
ita telili Sfitta Ì0t 1« m i àXuméi e w t t a % n m i »
iftiltaii ftaltatai
Ita tarili
ita è t a l i i t a « I ti ta
Ita
«Iti
nf ita nriinta* à m py W
ta i t a
ttinita »ttt ta ftaltatai In Ita
. I ta ta»
tmmmm% tati«tawi
tf li «11! mffmi t «tastanital n l« t «f tapiri« #» If
li li t m m $ #ttay tamtam ni
tafiiftatatt ta
Ì««ÉI '0^B3kt#SKÌ|^SS#
«*&“►
When it appear« that a substantial volume of imports will
he affected n
the decision, or the decision for other reason«
is of sufficient importance, it will he published in the weekly
treasury Decisions and will not he changed hy any further admin1st retire decision of the Commissioner imposing a higher rate
of duty on the article except after a notice that a possible
change is under consideration has heen published in the federal
Eegister and the parties in interest Imre been given an oppor
tunity to make representations to the Commissioner in support of
a continuation of the prior decision.
If after a consideration
of the representations in the light of all controlling factors
the Commissioner finds that a correct interpretation of the law
makes a reversal of the prior decision necessary, the new decision
will be published in the weekly treasury Decisions.
It will be
effective only as to articles entered for consumption or with
drawn from warehouse for consumption on and after the expiration
3o days after such date of publication.
fhe notice procedure is applicable only in the case of administratlve ruling«.
If a change to higher Saties comes about
as a result of statutory enactment
Judicial decision, or Presi
dential proclamation, the notice procedure is Inapplicable.
As a further step in introducing certainty in the field
tariff classification, the amendment provides that in
any
of
ease
where there has heen an established and uniform practice in as
sessing duties on an imported article, no higher duties will be
imposed by an administrative ruling of the Commissioner until
lili
\r
îf. n. ¿'¿L-S'f S' I
mm’
gM w m t m e m m m w m m m t m
imm
m
* CtfSfaa* ss»®*fl<*» »«sto
Saatesa % c a u « i o M af I p #
ter tette* *** •*•*!«» te
paw*!*» & yM M tsw far aMMnta* Saaisiaa« aa ta r iff *1**sm etti«« Is te w » » of teaartelteo I» MMMntat fwurtt»
i f * «¡te le i juran piât*»«# saltea feefan tech testetes*
m g la «testate te l*®s*a Mates' feti«*»
W
K
smsfiis»
offici «r tes ccwtifisiona » casti»»
H É M 0 .
». ft.
m mwmmm m m m m *m mmm- mrnmm*
tm m if -- m m m mmm
mmm %
mmm m m m m
m mmtm
met
1st mêmr t& mêmm- % a i É m
**«ti U sM tfeiiit# m m&
m f i m In «*• «Aalt «f f***ps#ti** 1«$»«*«*« « ü
m t» Iìm nte» ®f èaty «iftteMn t»
M
*•»
SnpuriM
tüe tüt*t «MtM» it I* émìmé ts i#É£* *n»i»*#***il*# i§»
«Mas» f®
glutfttf
Hating ÌÉ IH WHnl «»Hat
3**UU* mt#r «natta* tak Iff
*K|riMlaa* m tft§
mm Wmm£*m M a * Kmmàmâ. ty «Aita* marita * mm tm mbit*»
in* m jt&m im m t» «tffaat IMt piti*»««*
ta**«t*f» m& tm mtm *m ®*tm * «agr appi* in
vHUm ta ümf 4^Mâ«nt#Mr «f £«**$#»' *&s«ta$*ia $5* % ®#*
fa# * #■&
Uf «a te t e tagiff al*artÉU«iftaft #t »ay «rtttia
ttMek tta* «*at«av&*i* ta«**H«t itti» ## «ajnrtlag Ufo tin
Untat mmm* t# ttar £HH#& tu lafamnia* mmwmw ii
*
a# M tm É f i « M ü I# mWmmtm mmttmtm t&
ito mmum Mtunttt«a, » tantali» «t tiUi ttiff clinifl*
«•U«» af Uhi ***i#ta »IU t# nata, mrn In «twmea n i t a l n
#a#t*ttaa*
- 2
The need for greater certainty in the customs classification pro
cedure was one of the points most emphasized in discussions last year
between United States officials and trade and customs representatives
of a number of foreign countries.
The new procedure operates as follows:
Prospective importers or foreign exporters may apply in writing
to the Commissioner of Customs for a ruling as to the tariff classifi
cation of an article.
If they furnish all information necessary to a
decision, such as specifications, component materials, chief use, etc.,
or if the information is otherwise available to customs authorities, a
decision as to the tariff classification of the article will be made,
R £ P%£S p a h /
even in advance of its importation. Where practicable, a.^sample should
be SU*'““’*
4-Via on«! 1
nn
attaches tCPthe decision, it will be published in the weekly Treasury
Decisions, and will become a "uniform and established practice," not
subject tOy^change Jswi#l#4jag higher rate I without the formal notice and
the 30 day waiting period.
The waiting period for effecting a change
•urf1 1 not apply where higher duties come about through changes in law
or judicial decisions.
The amendment providing for advance rulings on classification
questions is identified as Treasury Decision _____, and constitutes a
new section, l6.10a of the Customs Regulations of 19^3*
appears in the Federal Register of
The Decision
Proposed Press Release
Secretary Snyder announced today that the Bureau of Customs has
established procedures whereby foreign traders can obtain in advance
of importation into the United States^ formal rulings of the tariff
classification of merchandise and the rate of duty to be applied.
Frank Dow, Commissioner of Customs, said the action is one of the
most important steps taken in the Bureau1s continuing program of pro
cedural improvement to meet modern trade needs.
While advisory opin
ions have been possible under existing regulations, the new provision
i
makes it easier for the importer to be certain of how the merchandise
he wishes to bring into the United States will be treated for tariff
purposes, and thus what his "landed costs” will be.
When the new provisions are utilized by the foreign trader, the
possibilities of a field officer's determination being overruled by
higher customs officials without notice, or of different tariff treat
ment of the same merchandise at different ports of entry, are eliminated^fa^
Foreign trade may thus be stimulated to the extent that the greater
certainty in regard to customs charges makes possible freer commitments
by United States importers.
In the unusual situation in which a further study of legal require£>\t a KitBSEfo u £ At t r w *P m
t
ments might indicate a revision involving higher duty^ such action w o m d
be taken only after notice has been given and representations of inter
ested traders have been considered.
would take effect only after
formal decision-
Then, any increase found necessary
30 days had elapsed from publication of a
For simultaneous release at 12 noon, November 1,
1950, by the Treasury Department, by the United States
Delegate to the GATT Conference, Torquay, England, and
by Under Secretary of State James E. Webb in his speech
at the 37th National Foreign Trade Council, New York, N.Y.,
on the morning of November 1, 1950.
The need for greater certainty in the customs classification pro
cedure was one of the points most emphasized in discussions last year
between United States officials and trade and customs representatives
of a number of foreign countries«
-''^The new procedure operates as follows:
Prospective importers or foreign exporters may apply in writing
to the Commissioner of Customs for a ruling as to the tariff classifi
cation of an article.
If they furnish all information necessary to a
decision, such as specifications, component materials, chief use, etc.,
or if the information is otherwise available to customs authorities, a
decision as to the tariff classification of the article will be made,
even in advance of its importation.
Where practicable, a representative
sample should be submitted with the application.
If the decision appears to be of sufficient importance to the
import trade, it will be published in the weekly Treasury Decisions,
and will become a "uniform and established practice," not subject to
administrative change to a higher rate without the formal notice and
the 30 day waiting period.
The waiting period for effecting a change
will not apply where higher duties come about through changes in law
or judicial decisions.
Ifonpq|yad;;jfe,orr Rgloaso«»»
Secretary Snyder announced today that the Bureau of Customs has
established procedures whereby foreign traders can obtain in advance
of importation into the United States, formal rulings of the tariff
classification of merchandise and the rate of duty to be applied«
Frank Dow, Commissioner of Customs, said the action is one of the
most important steps taken in the Bureau’s continuing program of pro
cedural improvement to meet modern trade needs,
While advisory opin
ions have been possible under existing regulations, the new provision
makes it easier for the importer to be certain of how the merchandise
he wishes to bring into the United States will be treated for tariff
purposes, and thus what his ’’landed costs” will be«
When the new provisions are utilized by the foreign trader, the
possibilities of a field officer’s determination being overruled by
higher customs officials without notice, or of different tariff treat
ment of the same merchandise at different ports of entry, are eliminated«
Foreign trade may thus be stimulated to the extent that the greater
certainty in regard to customs charges makes possible freer commitments
by United States importers«
In the unusual situation in which a further study of legal require
ments might indicate a revision involving higher duty on a subsequent
shipment, such action would be taken only after notice has been given
\
*
and representations of interested traders have been considered« Then,
any increase found necessary would take effect only after 30 days had
elapsed from publication of a formal decision.
TREASURY DEPARTMENT
Information Service
RELEASE 12 O'CLOCK NOON/ E.S.T.
Wednesday, November 1, 1950>
WASHINGTON, D .C .
S -2 4 9 2
Secretary Snyder announced today that the Bureau of Customs
has established procedures whereby foreign traders can obtain in
advance of importation into the United States, formal rulings of
the tariff classification of merchandise and the rate of duty to
be applied.
Frank Dow, Commissioner of Customs, said the action is one
of the most important steps taken in the Bureau's continuing
program of procedural improvement to meet modern trade n e e d s .
While advisory opinions have been possible under existing
regulations, the new provision makes it easier for the importer
to be certain of how the merchandise he wishes to bring into the
United States will be treated for tariff purposes, and thus what
his "landed costs" will be.
When the new provisions are utilized by the foreign trader,
the possibilities of a field officer’s determination being over
ruled by higher customs officials without notice, or of different
tariff treatment of the same merchandise at different ports of
entry, are eliminated.
Foreign trade may thus be stimulated to the extent that the
greater certainty in regard to customs charges makes possible
freer commitments by United States importers.
In the unusual situation in which a further study of legal
requirements might indicate a revision involving higher duty on
a subsequent shipment, such action would be taken only after
notice has been given and representations of interested traders
have been considered.
Then, any increase found necessary would
take effect only after 30 days had elapsed from publication of
a formal decision.
The need for greater certainty in the customs classification
procedure was one of the points most emphasized in discussions
last year 'between United States officials and. trade and customs
representatives of a number of foreign countries.
2
The new procedure operates as follows:
Prospective importers or foreign exporters may apply in
writing to the Commissioner of Customs for a ruling as to the
tariff classification of an article.
If they furnish all
information necessary to a decision, auch as specifications,
component materials, chief use, etc., or if the information Is
otherwise available to customs authorities, a decision as to
the tariff classification of the article will be made, even in
advance of its importation. ‘Where practicable, a representative
sample should be submitted with the application.
If the decision appears to be of -sufficient importance to
the import trade, it will be published in the weekly Treasury
Decisions, and will become a "uniform and established practice,"
not subject to administrative change to a higher rate without
the formal notice and the 30 day waiting period.
The waiting
period for effecting a change will not apply where higher
duties come about through changes in law or judicial decisions.
0O0
WM
11
3^2.5
(T. D.
52588
)
TARIFF CLASSIFICATION OF PROSPECTIVE
IMPORTS - CUSTOMS REGULATIONS AMENDED
Customs Regulations of 19^3 amended by adding new
section to provide a procedure for obtaining
decisions on tariff classification in advance
of importation in commercial quantities and to
insure published notice before such decisions
may be changed to impose higher d u t i e s .
.
TREASURY DEPARTMENT
OFFICE OF THE COMMISSIONER OF CUSTOMS
WASHINGTON, D. C.
TO COLLECTORS OF CUSTOMS AND OTHERS CONCERNED:
TITLE 19 -- CUSTOMS DUTIES
CHAPTER I -- BUREAU OF CUSTOMS
Part 16--LIQUIDATION OF DUTIES
In order to reduce■to a minimum such uncertainty as may
exist in the minds of prospective importers and foreign ex
porters as to the rates of duty applicable to articles imported
into the United States, it is desired to make administrative
decisions on tariff classification binding to' the fullest extent
possible under existing law.
The Customs Regulations of 19^3
are therefore being amended by adding thereto a section out
lining a procedure to effect this pur p o s e .
Prospective importers and foreign exporters may apply in
writing to the Commissioner of Customs, Washington 25* D. C.,
for a ruling as to the tariff classification of any article
which they contemplate importing into, or exporting to, the
United States.
If they furnish all information necessary to
a decision, or if the information is otherwise available to
the customs authorities, a decision as to the tariff classi
fication of the article will be made, even in advance of its
importation.
-
2-
12
When it appears that a substantial volume of imports will
be affected by the decision, or the decision for other reasons
is of sufficient importance, it will be published in the weekly
Treasury Decisions and will not be changed by any further
administrative decision of the Commissioner imposing a higher
rate of duty on the article except after a notice that a
possible change is under consideration has been published in
the Federal Register and the parties in interest have been
given an opportunity to make representations to the
Commissioner in support of a continuation of the prior decision.
If after a consideration of the representations in the light of
all controlling factors the Commissioner finds that a correct
interpretation of the law makes a reversal of the prior
decision necessary, the new decision will be published in the
weekly Treasury Decisions. It will be effective only as to
articles entered for consumption or withdrawn from warehouse
for consumption on and after the expiration of 30 days after
such date of publication.
The notice procedure is applicable only in the case of
administrative rulings. If a change to higher duties comes
about as a result of statutory enactment judicial decision, or
Presidential proclamation, the notice procedure is inapplicable.
As a further step in introducing certainty in the field of
tariff classification, the amendment provides that in any case
where there has been an established and uniform practice in
assessing duties on an imported article, no higher duties will
be imposed by an administrative ruling of the Commissioner until
after a notice of the possibility of such a ruling has been’
published in the Federal Register and the parties' in interest
given an opportunity to submit written arguments against the
action under consideration.
If a ruling imposing the higher
duties is issued, it will, of course, not be effective until
after the expiration of the 30-day period previously referred
to .
In view of the foregoing, Part 16 of the Customs
Regulations of 19^3 (19 OFR Part 16 ), is hereby amended by
adding a new section 16 .10a, reading as follows"
16.10a Tariff classification of prospective imports.(a) Any prospective importer or foreign exporters may
apply in writing to the Commissioner of Customs, Washington
25, D. C., for a ruling as to the tariff classification
of any article which he intends to import into or ship to
the United States in commercial quantities. The
application shall contain a full description of each article.
13
-3The application shall also give the following infor
mation, unless it is clear that it will be of n o .value in
determining the tariff classification of the article:
(1) the respective quantities and values of the component
materials of which the article is composed;
(2 ) infor
mation as to its chief use and commercial designation in
the United States; and (3) any specifications^analyses,
or other information deemed necessary to a tariff classi
fication of the article. Whenever practicable, a sample
of the article should be submitted with the application.
(b) If the Commissioner is satisfied (l) that the
application is made in good faith by an importer or
foreign exporter who is properly and directly concerned
with the tariff classification of the article described;
(2 ) that the information submitted or otherwise available
is adequate for a considered decision; and (3) that the
ruling applied for is not already covered by a con
trolling published decision, the Commissioner will rule
on the tariff classification'of the article.
A copy of
the decision will be mailed to the applicant. The
decision will be published in the weekly Treasury Decisions
if it will affect a substantial volume of^imports or if
it is for any other reason of sufficient importance to
justify such publication.
(c) Any decision published pursuant to subsection
(b) shall be deemed to establish a uniform practice
within the meaning of section 315 .
•
> Tariff Act of 1930,
as amended.
The decision will not be changed by a
further ruling of the Commissioner to impose higher
duties on such an article unless the prior decision
should prove to be clearly wrong. When it appears to
the Commissioner that a correct interpretation of^the
law may require such a ruling, notice that the prior
ruling is under review will be published in the Federal
Register so that the parties in interest will have
an opporiunity to make such written submissions as
they desire, within a period which will be specified
in the notice, with respect to the correctness of the
contemplated action.
If after the consideration^of such
submissions as may be received the Commissioner issues
a-ruling imposing higher duties, it will be effective
only as to merchandise entered for consumption or with
drawn from warehouse for consumption on or after^the
expiration of 30 days after the date of publication of
such ruling in the weekly Treasury Decisions. lla
lla
procedure outlined in paragraph (c) is not applicable
to changes required by statutory enactment, judicial
decision, or Presidential proclamation.
4(d)
The notice procedure outlined in paragraph (c)
will be applied also in any other case in which the
Commissioner believes that a correct interpretation
of the law may require the issuance of an administrative
ruling imposing higher duties on an imported article
than has been assessed under an established and uniform
practice.
(Secs. 502,, 624, 46 S t a t . 731* 759* 39 U.S.C,
1502, 1624.)
FRANK DOW
Commissioner of Customs
Approved*
October 27* 1950
(Signed) JOHN W. SNYDER
Secretary of the Treasury
- 3 -
any State, or any of the possessions of the United States, or by any local tax
ing authority.
Treasury
be interest.
For purposes of taxation the amount of discount at which
are originally sold by the United States shall be considered to
Under Sections U2 and 117 (a) (1) of the Internal Revenue Code,
as amended by Section 115 of the Revenue Act of 19U1, the amount of discount at
vfhich bills issued heireunder are sold shall not be considered to accrue until
such bills shall be sold, redeemed or otherwise disposed of, and such bills are
excluded from consideration as capital assets.
|
Accordingly, the owner of
Treasury bills (other than life insurance companies) issued hereunder need in
clude in his income tax return only the difference between the price paid for
such bills, whether on original issue or on subsequent purchase, and the amount
actually 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
-
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 thq
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
November 9. 19£0
>
in cash or other immediately avail-
".■ •
able funds or in a like face amount of Treasury bills maturing
Gash and exchange tenders will receive equal treatment.
H EPL;
November 9» 1950»
p
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.
gift
The bills shall be subject to estate, inheritance,
or other excise taxes, whether Federal or State, but shall be exempt from
all taxation new or hereafter imposed on the principal or interest thereof by
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Thursday, November 2, 1950
&
The Secretary of the Treasury, by this public notice, invites tenders for
$ 1,100,000*000 , or thereabouts, of
—
ssr—
"
91
“day Treasury bills, for cash and
*4T
in exchange for Treasury bills maturing
+
November 9. 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
November 9. 1950
> and
February^. 1951 ' , when the face amount will be payable without
They Will be issued in bearer form only, and in denominations of
|1,000, $£,000, $ 10,000, $100,000, $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.mv, Eastern Standard time, Monday, November 6. 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
decimals, e. g., 99.925.
Fractions may not be used.
100, with
not more than three
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 will 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 from others must be accompanied
by payment of 2 percent of the face amount of Troasury bills applied for,
TREASU RY DEPARTM ENT
Information Service
WASHINGTON. D .C .
18
RELEASE MORNING NEWSPAPERS,
Thursday, November 2, 1950.
-2*1-93
The Secretary of t h e .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
November. 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 November 9 , 1950, and will mature
February 8 , 1951, when the face amount will be payable without
interest.
They will be issued in bearer form only, and in
denominations of $ 1 ,000, $ 5 ,000, $ 10 ,000, $ 100,000, $ 500,000, and
$ 1 ,000,000 (maturity value).
Tenders will be received at Federal Reserve’Banks and Branches
up to the closing, hour, two o ’clock p.m., Eastern Standard time,
Monday, November 6 , 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 therefor.
Others than banking institutions will 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 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 by the Secretary of the Treasury of
the amount and price range of accepted b i d s , 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
2
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 November 9> 1950,
in cash or other immediately available funds or in a like face
amount of Treasury bills maturing November 9, 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 b i l l s .
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 manedatory 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 arc sold
shall not be considered to accrue until such bills shall be sold,
redeemed or otherwise disposed of, and such bills are excluded
from consideration as capital assets. Accordingly, the owner of
Treasury bills (other than life insurance companies) issued here
under need include in his income tax return only the difference
between the price paid for such bills, whether on original issue or
on subsequent purchase, and the amount actually received either upon
sale or redemption at maturity during the taxable year for which the
return is made, as ordinary gain or loss.
*
Treasury Department Circular No. 4l8, as amended, and this
notice, prescribe the terms of the Treasury bills and govern the
conditions of their issue.
Copies of the circular may be obtained
from any Federal Reserve Bank or Branch.
oOo
IMMEDIATE RELEASE
November 3*, 195>0
t
The Bureau of Customs announced today a modification in the
previous procedure for the dissemination of information on quota
matters.
<2he current practice has been that on or about the eleventh
or twelfth of each calendar month the Bureau of Customs issued
press releases on the status of the tariff-rate quotas, the abso
lute quotas, and the Philippine quotas. The press releases show
data on the imports charged to such quotas from the beginning of
the quota periods through the fourth week of the previous month
(or fifth in cases of the calendar month ending on Thursday or
later in that week) • Such releases are mailed to any interested
person who makes application for them through the Information
Service of the Treasury Department, Washington, D# G.
In addition to the press releases, the Bureau of Customs
announces that in the future any interested person may telephone
the Quota Section of the Bureau of Customs on Executive 6U00,
extension 6l6 or 2366, during official hours, for the latest
information available as to the status of the quota covering any
particular commodity, with the understanding that any such informa—
tion furnished will be approximate only and not finally verified
nor necessarily based on complete coverage*
TREASU RY DEPARTM ENT
Information Service
WASHINGTON. D .C .
20
IMMEDIATE RELEASE,.'
Monday, November 6 . 1QS0 .
S -2 4 9 4
The Bureau of Customs announced today a modification
in the previous procedure for the dissemination of infor
mation on quota matters.
The current practice has been that on or about the
eleventh or twelfth of each calendar month the Bureau of
Customs issued press releases on the status of the tariffrate quotas, the absolute quotas, and the Philippine quotas.
The press releases show data on the imports charged to s u c h ’
quotas from the beginning of the quota periods through the
fourth week of the previous month (or fifth in cases of
the calendar month ending on Thursday or later in that
we e k ) . Such releases are mailed to any interested person
who makes application for them through the Information
Service of the Treasury Department, Washington, D. C.
In addition to the press releases, the Bureau of
Customs announces that In the future any interested person
may telephone the Quota Section of the Bureau of Customs
on Executive 6^1-00, extension 6l6 or 2366, during official
hours, for the latest information available as to the
suatus of the quota covering any particular commodity,
with the understanding that any such information furnished
will be approximate only and not finally verified nor
necessarily based on complete coverage.
0O0
KKLSA35 HOPJfSIO NEWSPAPERS,
. November 7 . 1950.
2 4
ï
The Secretary of the Treasury announced last evening that the tenders for
#1,100,000,000, or thereabouts, of 91-da.y Treasury bills to be dated November 9,
1950, and to mature February 8, 1951# which were offered on November 2, were
opened at the Federal Reserve Banks on November 6.
The details of this issue are as followss
Total applied for — $1,610,5%- $000
Total accepted
- 1,101,297,000 (includes $122,390,000 entered on a non
competitive basis and accepted in full
at the average price shown below)
Average price
- 99.659 Equivalent rate of discount approx. 3-350$
annua
Range of accepted competitive bids*
High
Low
- 99.680 Equivalent rate of discount approx. 1.266$ per annua
- 99.656
«
«
«
«
«
1.361$ "
"
(33 percent of the amount bid for at the low price was accepted)
Federal Reserve
District
Total
Applied for
Boston
New Tork
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
1
17*038,000
1,175,446,000
26,487,000
38,242,000
10,135,000
7,607,000
166,631,000
15,823,000
6,426,000
22,879,000
44,740,000
79.140.000«1,610,594,000
Total
A
/
Total
Accepted
,
15 698,000
722 ,606,000
18.137.000
38.242.000
10.135.000
7,607,000
119,931,000
15.756.000
6,426,000
22.879.000
44.740.000
79.140.000
$ 1 ,1 0 1 ,2 9 7 ,0 0 0
TREASU RY DEPARTM ENT
Information Service
WASHINGTON, D .C .
RELEASE M O R N I N G N EWSPAPERS,
Tuesday, November 7* 1950
S-2495
The Secretary of the Treasury announced last evening that the
tenders for $1,100,000,000, or thereabouts, of 91-^ay Treasury bills
to be dated November 9* 1950* and to mature February 8 , 1951* which
were offered on November 2, were opened at the Federal Reserve Banks
on November 6 .
The details of this issue are as follows:
Total applied for - $1,610,59^*000
Total accepted
- 1,101,297*000 (includes $122,390,000
entered on a non-competitive
basis and accepted in full at
the average price shown
below)
Average price
- 99.659 Equivalent rate of discount approx.
1 .350$ per annum
Range of accepted competitive bids:
- 99-680 Equivalent rate of discount approx
1 ,266$ per annum
- 99«656 Equivalent rate of discount approx
1 .3 6 1 # per annum
High
Low
(33
percent of the amount bid for at the low ;price was accepted)
Total
Applied for
Federal Reserve
District
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
TOTAL
$
17 *038,000
1 ,175,446,000
26,487*000
38,242,000
10 ,135,000
7 ,607,000
166,631*000
15 .823,000
6,426,000
22,879,000
44,740,000
79,140,000
$1,610,594,000
oOo
Total
Accepted
$
15 ,698,000
722 ,606,000
18 ,137*000
38,242,000
10 ,135*000
7 ,607,000
119 ,931*000
15 ,756,000
6,426,000
22,879*000
44,740,000
79 ,1^ 0,000
$ 1 ,101 ,297*000
-7X H
/^€,7 r,
-~_™i-Jÿ~*jL-i£-
-
----
C*t / £ ^ ^...
The Treasury Department today announced the conclusion of an agree
ment between the Government/ of the United States and the Government of
the Republic of the Philippines covering repayment to the United States
of a balance left over from funds provided by the United States in 19l*8 to
cover claims against the United States Government arising out of the j¥&ulCu-u-Jx
operation^of the Army of the Philippines and guerilla forces#
The balance
amounts to approximately 70*000,000 Philippine pesos* or $35*000*000#
Repayment will be spread over a period of ten years, with interest at the
rate of 2 l/2 percent on the unpaid balance#
The agreement reached today will facilitate the management of
Philippine fiscal affairs* pending strengthening of the Philippine tax
structure.
The agreement* which was negotiated by the Departments of
the Treasury* State and Defense* was signed on behalf of the United States
by Secretary Snyder* and on behalf of the Republic of the Philippines by
the Minister of Foreign Affairs* Brigadier General Carlos P* Romulo.
24
IMMEDIATE RELEASE,
Monday, November fe, 1950«
S-249o
The Treasury Department today announced the
conclusion of an agreement between the Government of
the United States and the Government of the Republic
of the Philippines covering repayment to the United
States of a balance left over from funds provided by
the United States in 1948 to cover claims against
the United States Government arising out of the war
time operations of the Army of the Philippines and
guerilla forces.
The balance amounts to approximately
70,000,000 Philippine pesos, or $35,000,000. Repay
ment will be spread over a period of ten years, with
interest at the rate of 2 1/2 percent on the unpaid
balance.
The agreement reached today will facilitate
the management of Philippine fiscal affairs, pending
strengthening of the Philippine tax structure. The
agreement, which was negotiated by the Departments
of the Treasury, State and Defense, was signed on
behalf of the United States by Secretary Snyder,
and on behalf of the Republic of the Philippines by
the.Minister of Foreign Affairs, Brigadier General
Carlos P . R o m u l o .
oOo
25
TREASURY DEPARTMENT
Washington
FOR KFTyA5gR
Friday, November 10» 1950
Press Service
No« S-2497
Secretary of the Treasury Snyder today made public data from
the preliminary report, Statistics of Income for 1948, Part 1, com
piled from individual income tax returns and from taxable fiduciary
income tax returns, for the income year 1948, under the direction
of Commissioner of Internal Revenue George J« Schoeneman*
This release presents two tables containing data for individual
returns and one table showing data for taxable fiduciary returns*
Table 1 shows the simple and cumulative distributions of number of
individual returns, adjusted gross income, and tax liability tabu
lated by adjusted gross income classes; table 2 shows sources of in
come and tax data for individual returns with standard deduction
separately from returns with itemized deductions, by taxable and
nontaxable returns and by adjusted gross income classes* Table 3,
for taxable fiduciary returns, shows the sources of income and the
tax liability, by total income classes*
These preliminary data present a complete coverage of returns
filed; however, they are subject to such revisions as are found
necessary upon further processing of the returns for additional
statistics for the complete report*
INDIVIDUAL RETURNS
The total number of individual income tax returns filed for ‘
the income year 1948 is 52,072,006* This is 3,027,002 returns, or
5*5 percent, less than were filed for the previous year* The current
year returns consist of 19,245,300 optional returns, Form 1040A;
20,203,306 short-form returns, Form 1040; and 12,623,400 long-form
returns, Form 1040* Of the total number of returns filed,
43,243,079 returns, or 83*0 percent, show use of the optional
standard deduction*
There are 36,411,248 taxable returns, a decrease of 5,167,276
returns, or 12*4 percent of the number of taxable returns for 1947*
Nontaxable returns for 1948 number 15,660,758, an increase of
2,140,274 or 15*8 percent, as compared with the number of nontaxable
returns for 1947*
The adjusted gross income of $164*173*861,000 for 1948 shows an
increase of 113*878*586*000* or 9„2 percent* over that reported for
1947. The adjusted gross deficit of $657*847*000 reported on
326*309 returns* shows an increase of 17.6 percent as compared
with that reported for the previous year»
The tax liability for 1948 is $ 1 5 * 4 4 1 * 5 2 9 * 0 0 0 This is a
decrease of $2*634*752*000* or 14.6 percent* over the tax for
last year®
Comparative data* individual returns* 1948 and 1947
(Money figures in thousands of dollars)
o
tt
0
Preliminary report
0
o
©
©
o
1948
«
©
All re turnss
Number ...«oo.aeoo.... 52*072*006
Adjusted gross incomeo 164*173*861
Taxable returns«
Number o«............® 36*411*248
Adjusted gross income. 142*056*885
Tax liability .0. 00.0. 15,441*529
Nontaxable returns$
Number of returns ...o 15*660*758
With adjusted gross
income«
Number e.oo.o.oooo 15*334*449
Adjusted gross
income o......... 22*116*976
With no adjusted
gross income«
326*309
Number ...........
Adjusted gross
657*847
deficit 000000.00
1947
°
©
s
Increase or
decrease (-)
Number s
or
sPercent
amount «
55*099*008 «3*027*002
150*295*275 13*878*586
-5.49
9 .23
41*578*524 «5*167*276 -12.43
4.99
135*301*876 6*755*009
18*076*281 «2*634*752 -14.58
13*520*484
2*140*274
15.83
13*221*412
2*113*037
15.98
14*993*399
7*123*577
47.51
299*072
27*237
9.11
559*193
98*654
17.64
Returns included
The individual income tax returns included in this release are
for the calendar year 1948* a fiscal year ending within the period |
July 1948 through June 1949* and a part year with the greater part ^
of the accounting period in 1948® The returns include Forms 1040A
and 1040* filed by citizens and resident aliens* and Form 1040B
filed by nonresident aliens having a business within the United
States. Tentative returns are not included and amended returns
are used only if the original returns are excluded. Statistics
are taken from the returns as filed* prior to revisions that may
be made as a result of audit.
26
- 3 Form 1040A*is the employee IS optional return ■which may be filed
by persons whose total income is less than $5,000 consisting of wages
from which tax is withheld and not more than a total of $100 of other
income from wages, dividends, and interest only« The tax liability
is determined by the collector of internal revenue on the basis of
the income reported, in accordance with a tax table provided under
Supplement T of the Internal Revenue, Code, which allows for the ex
emptions claimed and also allows for deductions and tax credits
approximating 10 percent of the income* Husband and wife may file
a joint return on Form 1040A if their aggregate income meets the
requirements for use of this form* On a joint return, the tax
liability, determined from tthe tax table by the collector, is the
lower of two taxess an aggregate tax on the basis of separate
incomes and a tax on the basis of split-income»
F o m 1040, the regular income tax return, which may be either
a long-form return or a short-form return, is used by persons who,
by reason of the size or source of their income, are not permitted
to use Form 1040A, and by persons who, although eligible to use
Form 104QA, find it to their advantage to use Form 1040* Persons
with adjusted gross income of less than $5,000, regardless of the
source, may elect to file the short-form return on which deductions
and tax credits are not itemized, the tax being determined on the
basis of adjusted gross income, by the taxpayer from the tax table
provided under Supplement T» Persons with adjusted gross income of
$5,000 or more, and persons with adjusted gross income of less than
$5,000 who wish to claim deductions in excess of the standard de
duction allowed through use of the tax table, file the long-form
return and compute the tax liability based on net income after
allowable deductions and exemptions*
Data for the returns with adjusted gross income under $25,000,
except the number of returns, and their distribution by adjusted
gross income classes are estimated on the basis of samples a c ^ ^
explained on page; 6«
'vnc ■
Changes in the Internal Revenue Code
Under the Revenue Act of 1948, amendatory of the Internal
Revenue Code, there are several changes affecting the comparability
of income and tax data for 1948 with that tabulated for 194? $ the
major changes ares
(a)
An income tax return is required to be filed for every
individual (citizen or resident) including minors, having $600 or
more (formerly $500) gross income for the taxable year* Individuals
whose gross income is less than $600 and from whom tax was withheld
should file a return to claim refund of tax*
- 4 (b) The per capita exemption for the taxpayer, his spouse, and
dependents is increased, from the former §500 exemption, to §600«
Supplementing this general increase in per capita exemption,
the 1948 act also provides (1) an additional exemption of $600 for
the taxpayer if he has attained the age of 65 before the end of the.
year and another $600 exemption if blind at the end of the year;
and (2) if a separate return is made by a taxpayer whose spouse has
no income and is not dependent on another, an additional exemption
of $600 for the taxpayers spouse if he or she is 65 years of age
before the close of the year, and another exemption of $600 if such
spouse is blind at the close of the year* These exemptions are
allowable in computing both the normal tax and the surtax* (The
additional exemption for blindness replaces the former special
deduction of $500 for blindness of the taxpayer*)
(c) The deduction for medical expenses paid in excess of 5
percent- of adjusted gross income cannot exceed $1,250 multiplied by
the number of exemptions other than those for age and blindness with
a maximum deduction of $2,500, except in the case of a joint return
of husband and wife the maximum is $5,000«
(d) The optional standard deduction, formerly the smaller of
$500 or 10 percent of the adjusted gross income, is increased to the
smaller of $1,000 or 10 percent of the adjusted gross income; however,
the limit for a married person filing a separate return remains at
$500«
(e) Although the tentative normal tax rate of 3 percent of
normal tax net income and the tentative surtax rates ranging from
17 percent of the first $2,000 of surtax net income to 88 percent
of such income in excess of $200,000, are retained, the 1948 act
substitutes for the 5 percent reduction of the combined tentative
taxes a series of larger reductions ranging from 17 percent of the
first $400 of combined tentative taxes to 9*75 percent of such taxes
in excess of $100,000* The combined normal tax and surtax, thus
computed, cannot exceed an amount equal to 77 percent of the
taxpayer^ net income*
In the case of a joint return of husband and wife, the combined
normal tax and surtax is twice the combined normal tax and surtax
determined on the income (after deductions and exemptions) reduced
by one-half*
(f) The optional tax table under Supplement T is revised to
reflect the increased amount of exemption, as well as the greater
percentage reduction in the combined tentative normal tax and
surtax, and provides a total tax on the total income of husband
and wife filing a joint return on the split-income basis*
27
- 5 (g) The amount of tax withheld at source on wages paid on or
after May 1, 1948, is reduced to 15 percent of the excess of wage
payments over withholding exemptions ; and revised wage bracket
withholding tables state reduced amounts to be withheld0
(h) In the case of a taxable year beginning in 1947 and ending
in 1948, the tax liability is the sum of (l) that portion of a tax,
computed under the law applicable to 1947 income, which the number
of days falling in 1947 bears to the total number of days in the
taxable year, and (2) that portion of a tax, computed under the law
applicable to 1948 income, which the number of days falling in 1948
bears to the total number of days in the taxable year0
Glassification of returns
Adjusted gross income, being common to all types of returns,
supplies the base for segregating the returns into adjusted gross
income classes| and the amount of net income or net deficit when
computed is disregarded« Returns with adjusted gross deficit are
tabulated as one class and appear as the first adjusted gross
income class under nontaxable returnso
The classification of returns as taxable and nontaxable is
based on the existence or nonexistence of a tax liability after
tax credits if they are allowableo
Returns with standard deduction are optional returns, Form
1040A, and short-form returns, Form 1040, with adjusted gross in
come less than $5,000, on both of which the tax is determined from
the tax table; and long-form returns, Form 1040, with adjusted
gross income of $5,000 or more on which the optional standard
deduction is used« The standard deduction in this case is the
smaller of $1,000 or 10 percent of the adjusted gross income, ex
cept that on a return of a married person filing a separate return,
the standard deduction is $500«
Returns with itemized deductions are long-form returns, Form
1040, on which nonbusiness deductions are itemized in detail;
long-form returns, Form 1040, with no deductions filed by spouses
of taxpayers who itemized deductions (such spouses are denied the
standard deduction); and returns with no adjusted gross income,
Form 1040, whether or not deductions are itemized«
6
Description of the sample and limitations of* data
Tables 1 and 2 in this release were derived from a basic^
stratified random sample of individual income tax returns designed
to comprise 1 percent of returns, Form 104QA and P o m 1040, with
adjusted gross income under $7,000; 10 percent of returns, Form 1040,
with adjusted gross income from $7,000 to $10,000; 20 percent o f _
returns, Form 1040, with adjusted gross income from $10,000 to $25,000;
and'100 percent of returns, Form 1040, with adjusted gross income of
#25 000 or more® Die different administrative processes applied to the
various categories of returns in collectors * offices affected somewhat
their availability for sampling® These categories were sufficiently
heterogeneous with respect to data tabulated to warrant independent
controls® Accordingly, returns in each of the above income ranges
were farther stratified to assure homogeneous groups subject to^
uniform administrative processing for sample selection, tabulation,
and weighting purposes® Precise 1 percent, 10 percent, and^20^percen
representation of returns with adjusted gross income under $7,000,
from $7,000 to $10,000, and from $10,000 to $25,000,^respectively, was
not achieved® However, the over-all universes, applicable to the
separate sampling strata, were independently determined and the data
tabulated from the samples were extended to such universes, so that
no random sampling error attaches to the total number of returns in
each income range® A relatively negligible error in the total number
of returns does result, however, from the use of rounded extension
factors o
In computing the possible variation of a given frequency due to
random sampling, a range of two standard errors was used; chances are
19 out of 20 that the frequency as estimated from the sample tabu
lation differs from the actual frequency, if the entire universe were
tabulated, by less than twice the standard error® Variation beyond
the two—error limit would occur only 1 time in 20 and would be
sufficiently rare to justify a two-error range in defining sampling
variability® Accordingly, in cells associated with taxable or nontaxable adjusted gross income classes under $7,000, frequencies of
the magnitude of 1 million or more are subject to variation of less
than 2o8 percent; variation' for lesser frequencies increases to a
ma-x-inrnm of 9 percent at 100,000, and a maximum of 28 percent at
10.000® In cells associated with adjusted gross income classes from
$7,000 to $25,000, frequencies of the magnitude of 100,000 or more
are subject to less than 2®8 percent variation; variation for lesser
frequencies increases to a'maximum of 10 percent at 10,000, and a
maximum of 28 percent at 1,000® The degrees of variability noted
above relate only to cell frequencies and do not indicate the
variability associated with money amounts of income, deductions,
or tax®
- ? -
28
TAXABLE FIDUCIARY RETURNS
The total number of taxable fiduciary income tax returns filed for
the income year 1948, is 101,283* The total income reported thereon is
|986,806,000 and the net income taxable to the fiduciary is $530,360,000,
resulting in a tax liability of $ 176,309,000*
Comparative data, taxable fiduciary returns, 1948 and 1947
(Money figures in thousands of dollars)
fpl ''^ielli^hkry' 'report sIncrease or decrease (-)
#
: Number or •
1948
|
1947
* Percent
«
0
t amount
Number of returns ©a®®.®*®*
109,997
101,283
-7 *92
-8,714
To*b& 1 income $«o ••«© ©$®*«®# '*986,806
973,583
1*36
13,223
Het income taxable to
fiduciary ©»•••a,,,,,,,,©©
530,360
509,244
21,116
4.15
lax liability
176,309
173,071
1.87
3,238
The taxable fiduciary returns included in Statistics of Income are
for the calendar year 1948, a fiscal year ending within the period July
1948 through June 1949, and a part year with the greater portion of the
accounting period in 1948, An exiguous number of taxable returns for
estates and trusts filed improperly on Form 1040 are included; however,
the data thereon are edited to conform to that reported on Form 1041*
Tentative returns are not included and amended returns are used only if
the original returns are excluded. Statistical data are completely
tabulated from each taxable fiduciary return, prior to audit.
Although only the taxable fiduciary returns are included in
statistics, nevertheless, a return is required to be filed for an estate
if the gross income is $600 or more, for a trust if the net income is
$100 or more, or if the gross income is $600 or more, regardless of the
net income, and for every estate or trust of which any beneficiary is
a nonresident alien.
The rates of tax, the provisions respecting gross income to be
reported, the deductions with certain exceptions, and the tax credits
provided for the income of individuals apply also to income of estates
and trusts® Deductions for contributions without limitations and for
amounts distributable to beneficiaries are allowable in computing the
net income on which the fiduciary is to be taxed. An estate is allowed
an exemption of $600 and a trust is allowed an exemption of $100 against
net income for purposes of both the normal tax and surtax for 1948, The
tax, not subject to current collection, is due when the return is filed,
after the close of the year®
The total income reported provides the base for classification of
the returns by size of income® Total income is the amount resulting
from the combination of profit or loss from rents and royalties, from
trade or business, from partnerships, from sales or exchanges of
property, together with income from dividends, interest, estates and
trusts, and miscellaneous income. Total income is an approximation
of the adjusted gross income tabulated for individual returns.
AdJu s t ed gross incoine e la s s s s 1/
G uadati va d i s t r i - Cumulative d i s t r i S tap le d is trib u tio n button from highest button from lowest
H uber
Ritura« with adjustsd gross
inoosM (tax ab ls and
nontaxable)«
Under 0 ,5
0 .5 undar 0.75
0 .7 5 under 1
1 under 1 .2 5
1 .2 5 under 1 .5
1 .5 under 1 .7 5
1 .7 5 under 2
2 under 2 .2 5
2 .2 5 under 2 .5
2 .5 under 2 .7 5
2 .7 5 under S
5 under 5 .5
5 .5 under 4
4 under 4 .5
4 .5 undar 5
5 undar 6
6 under 7
7 undar 8
8 undar 9
9 undar 10
10 undar 11
11 undar 12
12 under 15 .
15 under 14
14 under 15
15 undar 20
20 undar 25
25 undar 50
50 under 40
40 undar 50
50 under 60
60 undar 70
70 undar 80
80 under 90
90 under 100
100 under 150
150 under 200
200 under 250
250 undar 500
500 undar 400
400 under 500
500 under 750
750 under 1,000
1 ,0 0 0 under 1,500
1 ,5 0 0 undar 2,000
2 ,0 0 0 undar 5,000
5,000 undar 4,000
4 ,0 0 0 undar 5,000
5 ,0 00 o r nora
T o tal
Returns with no adJust ed gross
inecsM £/ (nontaxable)
_________T n r *
For footnote
VrtfJi ___________________
In d iv id u i returns f o r 1948, by adjusted (ro sa income c la s s a s i Simple sad cumulative d istrib u tio n s o f m uber o f re tu rn s,
adjusted gross income, and ta x l i a b i l i t y , with corresponding percentage d istrib u tio n s
Percent
of
to ta l
5,299,919
2,151,078
2,52 0 ,0 2 4
2,475,559
2,705,528
2,871,027
5,095,570
5,142,587
5,155,567
5,158,124
5,005,132
6,526,715
4,070,051
5,047,810
2,046,957
2,51 0 ,2 9 5
1,162,828
590,028
554,540
248,517
188,222
158,555
110,811
87,975
75,984
256,458
122,221
70,550
76,884
57,642
21,575
15,062
8,466
5,735
4,089
9,619
5,122
1,515
708
685
269
510
105
87
29
22
4
5
4
6.58
4 .1 6
4 .4 8
4*78
5.25
5 .5 5
5.98
6.07
6.09
6.10
5.81
10.29
7.87
5.89
5 .9 6
4 .4 6
2.25
1 .1 4
.69
.48
.5 6
.27
.21
.17
.14
.46
.24
.14
.1 5
.0 7
.04
.03
.02
.01
.01
.02
.01
(6)
(6 )
(6 )
(6 )
(6)
<•)
(6 )
<•)
(8 )
(6 j
(6)
(61
51,745,697
100.00
326,509
(7)
Percent
of
to ta l
Huober
51,745,697 100.00 3,299 ,9 1 9
95.62 5,450,997
48,445,778
46,294,700
8 9.47 7,771,021
45,974,676
84.98 10,244,580
41, 601,117
8 0 .2 0 12,949,908
74.97 1 5,820,955
58,795,789
55,924,762
69.43 18,916,305
52,829,592
63.44 22,0SB,892
57.57 25,212,459
29,686,805
51.28 28,570,585
26,555,258
4 5.17 51,575,716
25,575,114
20,369,982
59.57 36,702,428
15,045,289
29.07 4 0,772,459
10'973,258
21.21 45,820,269
7,925,428
15.32 4 5,867,206
5,878,491
11.56 4 8,177,501
5,568,196
6.90 4 9,540,329
4 .6 5 4 9,930,555
2,405,568
1,815,542 , 5.51 50,284,895
2 .8 2 50,533,412
1,460,802
2 .5 4 50,721,634
1,212,285
1 .9 6 50,860,187
1,024,065
1 .7 1 50,970,998
885,510
1 .5 0 51,058,973
774,699
686,724
1 .5 3 51,152,957
1 .1 8 5 1,569,395
612,740
376,502
.73 51,491,616
.4 9 51,562,166
254,081
.55 51,659,050
185,551
106,647
.21 51.676.692
69,005
.13 51,698,067
47,650
.09 51,711,129
.0 7 51,719,595
54,568
26,102
.0 5 51,725,328
.04 51,729,417
20,569
16,280
.05 51.759.056
6,661
.01 51,742,158
5,559
.01 51,745,475
2,224
(6 ) 51,744,181
1 ,5 1 6
(6) 51,744,864
853
(6 ) 51,745,155
564
(6) 5 1,745,443
254
(6 ) 51,745,548
149
(6 ) 51,745,655
62
(6) 51,745,664
55
(6 ) 51,745,686
11
(e ) 51,745,690
7
(6 ) 51,745,693
(61 51.745.697
___4
6 .5 8
10.53
15.02
1 9 .8 0
26.08
50.57
56.56
42.63
4 8 .7 2
54.83
60.65
70.98
78.79
84.68
8 8.64
93.10
95.35
96.49
97.18
97.66
98.02
98.29
98.50
98.67
98.82
99.27
99.51
99.65
99.79
99.87
99.91
99.95
99.95
99.96
9 9 .9 7
99.99
9 9 .9 9
99.99
99.99
99.99
99.99
9 9 .9 9
99.99
99.99
99.99
99.99
99.99
99.99
100.00
•
«
-
52.072.006 ___ i l L .
p»p. 16-17; fox extent ■fc© which data
Percent
of
to ta l
Number
ftsted c o s s l n b o s a 2
Cumulative d i s t r i - Cumulative d i s t r i Cumulative d i s t r i Cumulative dia t r i button from highest button from lowest Simple d is trib u tio n button from highest button from lowest
income d a i a_______
incorna e l s e
Income c in s i
8
Percent
Percent
Percent
Percent
Percent
Percent
o
f
of
Amount
Amount
o
f
Amount
Amount
of
Amount
of
of
to ta l
to ta l
to ta l
to ta l
to t a l
to lta ..
S im la d istrib u tio n
Aaounb
928,155
1,55 2 ,5 6 0
2,051 ,0 1 6
2,786,711
5,716 ,9 8 8
4 ,6 6 1 ,8 4 1
5,807,558
6,674,789
7,489,705
8 ,2 8 6 ,4 1 5
8,654,778
17,271,552
15,215,554
15,020,768
9,69 5 ,9 5 7
12,577,685
7,49 2 ,8 5 7
4,59 5 ,9 6 4
5,00 0 ,5 5 1
2,353,259
1,970,543
1 ,5 9 0 ,0 5 0
1 ,5 8 5 ,0 6 4
1 ,1 8 5 ,7 2 5
1 ,0 7 1 ,5 0 6
4,05 4 ,2 5 1
2,717,601
1 ,9 2 4 ,6 9 6
2,689,598
1 ,6 7 5 ,7 1 5
1,165 ,9 8 9
844,505
632,508
485,649
587,651
1,155 ,4 5 6
554,545
290,725
192,616
254,178
119,172
184,524
90,180
105,057
48,550
52,552
15,279
15,562
27.352
.6 7
.8 2
1 .2 4
1 .7 0
2 .2 6
2 .8 4
5.54
4 .0 7
4 .5 6
5 .0 5
5 .2 6
10.52
9 .2 7
7.95
5 .9 1
7 .6 6
4 .5 6
2 .6 8
1 .8 5
1 .4 3
1 .2 0
.97
.84
.72
.6 5
2 .4 7
1 .6 6
1 .1 7
1 .6 1
1 .0 2
.71
.a
.59
.5 0
.24
.7 0
.55
.18
.1 2
.14
.0 7
.1 1
.0 5
.0 6
.05
.05
.0 1
.0 1
.02
164,175,861
100.00
8/657,847
(7 )
9 A 6 8 .S 1 6 .a i4 . . .(71
.5 7
164,173,861 100.00
928,133
1 .5 9
2,280,495
163,245,719
99.43
4,311,509
2.63
161,895,559
98. a .
97.57
7,09 8 ,2 2 0
4 .5 2
159,862,545
6.59
95.68 10,815,208
157,075,632
9 .4 3
153,358,644
93.41 1 5,477,049
12.96
90.57 21,284,587
148,696,805
17.03
142,889,265
87.04 2 7,959,576
21.59
136,214,476
82.97 35,449,079
78.41 43,735,494
26.64
128,724,773
31.90
73.56 52,370,272
120,438,858
42.42
68.10 69,641,624
1 1 1 ,805,880
51.69
94,552,228
57.58 84,855,178
59.62
79,518,674
48.51 97,876,946
65.52
66,297,906
40.58 107,571,885
73.18
56,601,969
54.48 120,149,566
77.75
44,024,286
26.82 127,642,425
80.42
56,551,429
2 2.25 152,056,387
82.25
32,157,465
19.58 155,036,918
85.69
29,156,954
17.75 157,390,177
84.89
26,785,675
16.51 159,360,720
1 5.11 140,950,750
85.85
24,815,152
8 6.70
25,225,102
14.15 142,535,814
87.42
1 5.50 143,519,559
21,840,058
88.07
12.58 144,590,845
20,654,515
90.54
1 9,585,007
1 1.95 148,645,096
9 2 .2 0
1 5,528,756
9 .4 6 151;562,e97
93.37
7 .8 0 155,287,595
12,811,155
94.98
10,886,459
6.63 155,926,791
8 ,2 4 7 ,0 6 1
96.00
5 .0 2 157,600,504
4 .0 0 158,766,495
96.71
6,575,548
97.22
5,40 7 ,5 5 9
5 .2 9 159,610,798
97.61
4 ,5 6 3 ,0 5 4
2 .7 8 160,243,306
97.90
5 ,9 5 0 ,5 4 6
2 .5 9 160,728,955
98.14
5,444,897
2 .1 0 161,116,586
98.84
5,05 7 ,2 6 6
1 .8 6 162,270,042
1 .1 6 162,604,587
9 9 .1 7
1 ,9 0 5 ,8 1 0
99.34
1 ,5 6 9 ,4 6 5
.85 165,095,110
.6 6 163,287,726
99.46
1,07 8 ,7 4 2
99.60,
.5 4 163,521,904
886,126
99.68
651,948
.4 0 165,641,076
99.79
552,778
.52 163,825,600
99.84
548,252
.21 165,915,780
258,072
.1 6 164,018,817
99.91
99.94
.0 9 164,067,547
155,035
99.97
.0 6 164,119,879
106,505
.05 164,153,158
99.98
55,975
.02 164,146,520
40,694
99.98
.02 164f 17SrB61 100.00
27.532
.
-
«
«
—
2 ,965
54,741
70,450
116,965
184,240
250,783
520,946
383,632
438,229
476,419
1 ,0 0 6 ,6 1 6
983,619
899,935
787,111
1,119,689
757,712
472,053
544,668
286,812
252,268
214,571
196,008
175,004
164,193
684,138
526,578
418,906
654,532
481,756
374,152
295,126
254,070
188,812
157,020
506,298
256,026
146,878
100,541
127,101
67,454
103,851
52,015
61,775
28,189
51,559
7,771
7,556
15r287
•
.0 2
.22
.4 6
.76
1 .1 9
1 .6 2
2 .0 8
2 .4 8
2 .8 4
3 .0 9
6.52
6.57
5 .8 5
5.10
7.25
4 .7 8
3.06
2 .2 3
1 .8 6
1.65
1 .3 9
1 .2 7
1 .1 3
1 .0 6
4 .4 3
3 .4 1
2 .7 1
4 .2 4
5 .1 2
2 .4 2
1 .9 0
1 .5 2
1 .2 2
1 .0 2
5 .2 6
1 .6 6
.9 5
.6 5
.82
.4 4
.67
.5 4
.4 0
.18
.2 0
.0 5
.0 5
.1 0
15,441,529
100.00
-
-
15.4A1.S29
100.00
-
mm
**
2 ,9 6 5
15,44 1 ,5 2 9 100.00
37,706
99.98
15,438,575
108,156
99.76
15,4 0 5 ,8 5 2
99.30
225,121
15,535,382
409,561
98.54
1 5,216,417
660,144
1 5,052,177
97.35
95.72
981,090
1 4,781,394
9 5.65 1,364 ,7 2 2
14,460,448
14,076,816
91.16 1 ,8 0 2 ,9 5 1
15,638,587
88.32 2 ,2 7 9 ,3 7 0
15,162,168
85.24 3,28 5 ,9 8 6
78.72 4 ,2 6 9 ,6 0 5
12,155,552
7 2 .3 5 5 ,1 6 9 ,5 4 0
11,171,955
10,271,998
66.52 5,956 ,6 5 1
9 ,4 8 4 ,8 8 7
61.42 7,076,ÌM 0
54.17 7,814,052
8 ,5 6 5 ,1 9 6
7,627 ,4 8 6
4 9 .4 0 8,28 6 ,0 8 5
46.54 8,630,755
7,155,455
44.11 8 ,9 1 7 ,5 6 5
6,810,786
4 2 .2 5 9,169,835
6,523,975
40.62 9,584,404
6,27 1 ,7 0 5
6,057,154
39.25 9,58 0 ,4 1 2
37.96 9 ,7 5 5 ,4 1 6
5 ,8 6 1 ,1 2 6
36.82 9,919,609
5,68 6 ,1 2 2
55.76 10,605.747
5,521,929
31.53 11,1 3 0 ,3 2 5
4 ,8 3 7 ,7 9 1
4,511 ,2 1 5
27.92 11,5 4 9 ,2 5 1
3,892,307
25.21 12,205,763
20.97 12,685,519
5 ,2 5 7 ,7 7 5
2 ,7 5 6 ,0 1 9
17.85 1 3,059,651
2 ,5 8 1 ,8 8 7
15.45 13,352,777
2 ,0 8 8 ,7 6 1
15.55 1 3,586,847
1 2 .0 1 1 3,775,659
1 ,8 5 4 ,6 9 1
1 ,6 6 5 ,8 7 9
10.79 1 5,952,679
9.77 1 4,435,977
1 ,5 0 8 ,8 5 9
1,00 5 ,5 6 1
6.51 14,692,003
749,555
4 .8 5 14,838,881
5
.9 0 1 4,939,422
602,657
502,116
5 .2 5 15,066,523
2 .4 3 1 5,133,957
375,015
307,581
1 .9 9 15,257,808
205,730
1 .5 2 15,289,825
.98 15,551,596
151,715
89,942
.5 8 15,379,785
.4 0 15,411,124
61,755
50,414
.2 0 1 5,418,895
.15 15,42 6 ,2 5 1
22,645
15f 287
.10 IS f 441,529
eetluted.
Table 2. — Individual returns Tor 1948, by taxable and nontaxable returns and by adjusted gross Income classes _
_ part I, all returns; Part I
returns with Itemised deductions»
Number of returns. Income or loss from each of the sources comprising adjusted gross Income, adjusted gro
liability, tax payments, and tax overpayment
(Adjusted
erro as
Income el,
deductions,
-
-
-
•
.02
.2 4
.7 0
1*46
2 .6 6
4 .2 8
6*55
8 .8 4
1 1.68
1 4 .7 6
2 1.28
2 7 .6 5
55.48
5 8 . SB
4 5.85
50.60
53.66
55.89
67.75
5 9.38
60.77
62.04
65.18
64.24
68.67
72.08
74.79
79.03
82.15
8 4 .5 7
86.47
87.99
8 9 .2 1
9 0.25
93.49
9 5 .1 5
96.10
96.75
9 7.57
98.01
9 8.68
99.02
99.42
99.60
9 9 .8 0
99.85
99.90
1 00.00
-
fti&ggsss;;csg?:s883gs:s&8!3 8
T u a* x.
fox «stent to which dat»
- Part I, all returns$ Parti
Table Z. — Individual returns for 1948. by taxable and nontaxable returns and by adjusted gross income classes Number of returns. Income or loss from each of the sources comprising adjusted gross income, adjusted «to
returns with Itemised deductions;
liability, tax paymentsp and tax overpayment
PART I. - ALL RETURNS
Adjusted gross income c la s s e e 1/
4
S
6
7
8
8
10
U
12
18
14
18
16
17
18
19
20
21
22
28
24
25
26
27
28
29
80
31
82
S3
84
85
86
87
88
68
64
«5
66
67
68
(54)
663
450
966
1,190
1,582
1,488
1,351
5,447
2,547
6,249
5,178
5,525
7,219
14,677
7,280
4,543
. 2,474
2,887
2,554
2,477
1,774
1,416
2,326
7,616
4,983
4,060
5,541
2,904
1,975
1 ,986
2,105
912
724
3,077
1 ,755
864
475
1,052
545
640
154
297
105
«
m
14.560.108
793
2,844
5,055
6,982
8,930
9,306
12,664
11,494
15,352
16,679
27,936
25,557
26 , a e
25, 6 a
36,016
24,917
15,557
10,850
9,545
8,104
6,549
5,590
5,104
5,142
21,924
14,828
10,985
17,179
12,546
8,242
6,529
5,697
5,596
4,444
12,656
5,757
5,500
2,967
2,671
1,509
1 ,8 4 0
1,294
1,980
572
246
256
105
no
459.585
7.564.644
14,406
11,179
19,052
25,256
27,279
20,174
11,920
12,766
9,806
8,205
6,025
5,985
6,508
5,679
8 .871
188.878
1 .2 8 5 .4 6 0
526,927
1 ,5 1 5
2 ,7 5 6
9,082
13,942
17,567
15, n o
15,596
9,011
6,576
5,485
4 ,904
1 , 7a
954
(54)
1 .2 1 4
105.196
2 9 4 .4 U
212,747
26,650
50,184
50,620
58,771
6 8 ,4 a
46,680
46,976
45,052
28,545
55,070
22,224
18,852
22, a 4
15, o a
15.084
519.207
2.699.422
1,252,849
26,599
5 ,811
5,850
5,590
4,605
5,720
5,098
5,882
2 ,857
2,124
4 ,5 5 7
1 ,5 1 5
2,555
2,055
2.026
72.595
298.691
184,518
644,458
19,560
76,949
52,852
ia ,0 9 2
20,640
16,477
207,828
529,998
a ,s n
15,257
5 5 6 ,8 a
U ,5 5 1
542,775
448,600
14, 7U
292,192
10,995
505,880
8 ,869
512,005
8 ,8 6 8
2,259
187,954
7,540
524,465
5,854
174, i a
1 0 .n 7
177.642
851.184
5 .6 8 8 .6 a
18.048.768 1 .2 9 0 .6 7 7
8 ,8 2 8 ,1 4 8 1,022 ,8 1 4
766,552
81,677
1 ,5 8 6 ,5 a
7 8 ,s a
267,787
1,953
8 ,811
10,357
19,305
28,786
26, a s
32,892
55,419
58,665
57,829
84,515
84,548
86,154
84,444
157,425
147,845
125,948
111,141
105,347
96,665
98,097
82,854
77,803
78,322
322,247
2 a , 788
209,140
342,965
258,530
202,505
1 6 5 ,5 a
152,706
107,952
91,081
515,007
169,879
95,735
69,765
87,529
47,555
62,650
40,110
43,500
is , a s
17,956
7,756
4,458
25.417
4 .7 4 0 .8 4 6
66,576
828,809
826,510
5,299,919
1,781,388
829,942
1,168,608
668,498
1,402,108
1 ,0 6 5 ,1 0 0
1,156,984
1,088 ,4 8 8
1,06 9 ,1 0 8
1 , 2 a , 991
1,269,066
1,774,024
782,705
1,262 ,2 8 7
829,850
1,548,489
779,880
1,622 ,0 0 9
469,464
1 ,1 0 1 ,4 4 1
768,295
2,089,889
549,766
1 ,0 8 0 ,6 0 4
214.575
752.162
15.660.768 . 16.97 0 .9 5 7
52.072.006 12S.881.402
46 ,1 9 8 , a s 98,889,659
51,275
9,967
17,459
25,969
27,641
20,486
1 4 ,9 a
14,628
11,652
10,859
9,485
5,696
8 ,1 5 6
6,720
16.917
250.054
4 .9 7 0 .9 0 0
805,026
4 ,1 6 5 ,8 8 5
8,878,491
8 2,291,767
For fo o tn o tes, so t pp. 16-17; fo r sortent t o which date aro o stin atati, sso p . 6
1,457
5,550
5,794
12,454
16,994
17,549
2 i, a s
20,936
21,879
27,048
50,495
52,046
45,779
43,067
71,198
59,525
43,769
57,129
35,514
28,182
25,255
21,638
19,257
19,290
76,060
52,815
40,279
58,658
57,491
25,834
18,970
14,283
10,849
8,558
25,220
12,501
6,164
4,279
4,562
2,548
4 ,ia
1,332
2,197
1,241
509
56
128
2.289
£
50
51
52
58
64
55
56
57
58
59
60
61
62
191
1,167
1,188
5,185
5,708
4,476
5,829
5,995
9,026
10,959
20,567
1 7 ,a «
15,995
12,624
15,806
12,145
6,425
4,102
3,516
2,7S5
2,426
2,421
1,642
1 ,680
5,966
5,257
2,480
5,259
1,921
1,501
924
850
655
546
1,446
729
509
546
288
80
254
292
85
57
6
1
56
197
190.296
2 , 8a
15,365
16,862
29,189
58,075
40,195
68,580
65, 7 n
88,825
HO, 525
225,112
207,422
252,457
248,770
399,785
592,718
296,159
256,450
250,935
250,586
207,337
191,095
175,995
167,005
676,680
489,659
365,794
525,404
546,080
252,100
190, o a
159,429
104,184
85,087
212,467
82,028
44,107
20,258
25,426
9,672
12,097
6,559
1,678
5,157
952
9
26
191.222
2 ,a e
11,280
12,522
26,080
51,544
50,572
45,697
40,808
47,267
50,077
112,468
117,505
99,969
87,540
145,076
121,180
85,437
a , 599
59,157
55,154
48,180
40,960
55,495
55,199
135,127
95,951
65,066
91,937
60,659
59,755
50,655
a , 734
16,496
13,186
a , 248
18,526
9,105
7,505
9,291
2,896
6,597
4,578
2,850
1,449
680
50
5
16
2 .0 8 0 .2 1 5
369,740
255,757
1,156,421
906,102
1 ,0 7 1 ,4 a
1 ,0 9 2 ,7 9 0
1,54 8 ,3 4 4
1 ,8 7 0 ,9 7 0
1,801,919
2 ,8B 0,945
1,826,814
5,062,522
2,559,882
4,489 ,2 7 6
2,525,717
4,995 ,2 4 8
2,578,444
5,677,629
2,535,668
6,585,706
4,560,418 1 8,455,406
8,720,265 12,548,964
2,855,257 10,665,788
2 ,0 46,957
8 ,4 8 1 ,6 4 4
2,510,295 10,574,659
5,751,982
1,162,828
590,026
3,01 0 ,4 5 5
554,540
1,825,218
248, a ?
1,288 ,4 9 5
188,222
1,054,751
188,553
754,057
110,811
639,240
87,975
527,131
73,984
455,368
286,438
1 ,6 5 6 ,2 1 0
122,221
1 ,0 2 9 ,5 a
70,550
710,542
76,884
939,097
57,642
548,542
21,375
363,479
15,062
249,584
8,466
184,598
5,735
135,895
4,089
105,107
9,619
281,642
8,122
110,022
1,515
46,567
708
28 , 8 a
888
27,984
269
11,485
810
14,186
105
4 , 0a
87
8,591
2,842
29
847
22
4
284
8
10
4
9
86.411.248 108.910.468
i
89
40
41
42
48
44
45
46
47
48
49
Taxable return st
0 .5 under 0.75
0 .7 5 under 1
1 under 1 .2 5
1 .2 5 under 1 .5
1 .5 under 1 .7 5
1 .7 5 under 2
2 under 2.25
2 .2 5 under 2 .5
2 .5 under 2 .7 5
2 .7 5 under 5
5 under 5 .5
3 .5 under 4
4 under 4 .5
4 .S under 5
5 under 6
6 under 7
7 under 8
8 under 9
9 under 10
10 under 11
11 under 12
12 under 13
13 under 14
14 under 15
15 under 20
20 under 25
25 under 50
80 under 40
40 under 50
50 under 60
60 under 70
70 under 80
80 under 90
90 under 100
100 under ISO
150 under 200
200 under 250
250 under 800
500 under 400
400 under 500
500 under 750
750 under 1,000
1 ,0 0 0 under 1,5 0 0
1 ,6 0 0 under 2,000
2,000 under 5,000
8,000 under 4,0 0 0
4 ,0 0 0 under 8,000
5,000 or more
T o ta l tax able returns
Nontaxable retu rn si 35/
No adjusted gross Income §/
Under 0 .5
0 .6 under 0.75
0 .7 5 under 1
1 under 1 .2 5
1 .2 5 under 1 .6
1 .6 under 1 .7 5
1 .7 5 under 2
2 under 2 .2 5
2 .2 5 under 2 .5
2 .5 under 2 .7 5
2.75 under 5
S under 5 .5
5*5 under 4
4 o r nore
T o ta l nontaxable returns
Grand t o t a l
Taxable return s with adjusted (ro s e I n cone under # 5,000 and nontaxable returns
Taxable returns with adjusted gross
laom e o f # 5.000 o r nore___________________
S a les or exchanges
Businest and
Annuities
Partnership 16/
Rents and r o y a ltie s ¿4/
o f c a p ita l a s s e ts 17/
professi on 15/
Dividends J J / In te re s t 12/ and
Densions 15/
Net lo s s
Net p r o fit Net lo s s Net p r o fit Net lo s s Net p r o fit Net lo s s Net train
H
1
s
8
S a la rie s
T otal
number gt and
returns
wases 10/
260
1,602
1,905
7,417
9,842
9 ,8 a
8,505
8,441
7,857
8,697
14,524
9,946
11,735
9,172
14,157
8,096
5,778
4,458
3,955
2,604
2,988
2,145
1,905
1,520
6,893
5,792
3,225
4,310
2,942
1,716
1,410
1, 2a
807
1,074
2,231
882
490
275
186
205
157
84
28
50
118
1.
mm
17,485
55,529
56,676
160,296
200,566
196,864
522,182
522,668
548,625
458,345
806,254
a s , 266
7 a , 185
727,758
1 ,0 8 8 ,4 a
891,945
a 5 ,2 1 8
600,100
529,116
4 5 0 ,0SB
392,249
542,946
296,689
270,752
998,677
645,926
419,443
512,774
296, a 4
183,998
112,099
78,097
54,545
45,568
97,849
59,342
1S,44B
9,488
15,454
4,811
6,182
1,485
4 ,5 4 0
1,159
552
m
5,771
8,120,652
121.650
556
5,132
5,608
10,649
14,577
14,201
a , 406
25,822
30,125
32,616
69,096
77,564
a , 352
70,447
150,956
120,587
95,502
74,758
67,568
58,425
50,775
43,613
37,436
34,514
129,199
91,676
68,867
97,566
7 0 ,7 a
55,658
45,106
56,339
53,842
26,415
97,453
58,524
40,756
54,164
45,242
28,075
49, m
22,299
26,185
15,475
15,928
4 ,1 5 6
5 ,n 2
2.417
2.262 .8 8 5
252.885
20,165
8,618
19,449
2 5 ,7 a
55,757
54,628
40,452
60,056
40,747
42, s a
45,657
27,677
47,485
22, o a
50.489
4 9 9 .5 a
8 .0 8 4 .0 2 6
1,909,588
149,679
7,062
5,472
2,457
1 ,8 4 5
6,650
2 ,199
2 ,2 0 5
1,176
1 ,411
1 ,091
(54)
5,959
1,959
6.622
184.059
515.70»
251, » n
45,987
10,980
15,659
15,602
20,745
18,696
12,147
20 , e a
15,458
14,152
12,202
5,879
14,205
8,542
12.475
256.779
2.499 .6 6 2
689,917
12,725
8 ,1 7 5
5,178
5,479
6,622
4,769
2 ,9 n
5,545
2,975
2,675
2,445
1,571
2,765
1,715
2.'168
65.709
298.592
154, a a
6,154,659
85,802
1 ,8 0 9 ,7 5 2
145,977
«
70
«
545
1,688
1,420
2,752
4, 2 a
5,156
4,867
6,414
4,779
7,083
14,418
14,656
n ,7 8 7
11,135
16,550
16,159
10,097
8,545
7,099
6,642
5,892
5,157
4,287
4,386
15,831
10,240
7,098
9,085
5,192
5,187
2,256
1,451
1,018
784
1,848
672
285
145
142
60
a
26
26
8
6
1
1
m
1
2
S
4
5
6
r
8
9
10
U
12
18
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
80
SI
82
58
34
55
56
57
88
59
40
41
42
48
44
45
46
47
48
49
50
51
52
55
54
5S
56
57
58
59
60
61
62
68
64
65
66
67
68
lab ia 2 . - Individual returns fo r 1948, by taxable and nontaxable returns and by adjusted gross income cla s s e s — Part I , a l l returns) Part I I , returns with standard deduction) Part I I I ,
returns with lte n ise d deductions« Number o f returns, income or lo s s from each o f the sources oomprising adjusted gross Income, adjusted gross Income, deductions, exemption, ta x
l i a b i l i t y , ta x payments, and ta x overpayment - Continued
PAST I . - ALL RETURNS - Continued
Adjusted gross income cla s s e s ¿/
1
s
8
4
5
6
7
8
9
10
11
12
18
14
15
16
17
IB
16
20
21
22
28
24
25
26
27
28
29
SO
SI
82
88
84
55
86
57
88
89
40
41
42
48
44
4S
46
47
48
49
50
51
52
58
54
55
56
57
88
59
60
61
62
68
64
65
66
67
sa
Taxable returns«
0 .5 under 0 .7 5
0 .7 5 under 1
1 under 1 .2 5
1.25 under 1 .5
1 .5 under 1.75
1 .7 5 under 2
2 under 2.25
2.25 under 2 .5
2 .5 under 2.75
2 .7 5 under 8
5 under 8.5
5 .5 under 4
4 under 4 .5
4 .5 under 5
5 under 6
6 under 7
7 under 8
8 under 9
9 under 10
10 under 11
11 under 12
12 under 15
18 under 14
14 under 15
15 under 20
20 under 25
25 under 50
80 under 40
40 under 50
50 under 60
60 under 70
70 under 80
80 under 90
90 under 100
100 under 150
150 under 200
200 under 250
250 under 800
500 under 400
400 under 500
500 under 750
750 under 1,000
1.000 under 1,500
1,500 under 2,000
2.000 under 8,000
5.000 under 4,000
4.000 under 5,000
5.000 or mo«*e
T otal taxable returns
Nontaxable returns« 55/
No adjusted gross income £/
Under 0 .5
0 .5 under 0*75
0 .7 5 under 1
; 1 under 1.25
1 .2 5 under 1 .5
1 .5 under 1.75
1 .7 5 under 2
2 under 2.25
2 .2 5 under 2 .5
2 .5 under 2.75
2.75 under 8
8 under 5 .5
3 .5 under 4
4 or more
T otal nontaxable returns
Qrand to ta l
Sales or exchanges o f
property other than
ca p ita l aa e ts 18/
Net lo se
Net gain
(84)
805
(84)
916
1,075
585
1,586
1,848
2,476
2,750
5,449
4,405
4,881
4,611
7,548
6,959
4,104
2,848
2,016
2,577
2,129
1,679
1,492
1,588
4,561
2,721
1,786
2,168
1,160
841
454
882
254
95
496
259
28
21
58
7
592
10
11
5
•
«•
m'
(54)
(84)
1,002
1,071
788
1,445
1,178
798
970
6,065
8,466
2,858
5 ,776
5,909
5,959
2,215
1,841
1,461
1,199
948
786
729
785
2,678
1,754
1,590
1,727
1,097
1,047
645
400
60S
256
948
551
259
257
106
54
65
45
68
48
- ■
•
2.546
79.142 s c - ä l ü ä .
4,607
777
1,495
1,616
1,572
5,070
1,852
5,427
2,426 !
2,146
2,051
1,468 .
1,510
1,629
2.454
66,844
4,794
1,625
1 , 581
1 ,4 4 6
- .2,146
1,240
1,956
. 1,128
957 :
923
(54)
1,497
(84)
(54)
Income from Miscellaneous
income 20/
tru s ts 19/
SU
2,816
2,526
6,228
6,784
7,471
6,550
9,498
6,558
8,540
16,761
15,004
26,064
15,008
41,598
42,620
28,766
26,908
25,827
25,987
21,971
22,612
21,085
17,887
81,622
68,960
54,940
87,178
65,940
49,616
40,756
50,862
27,416
22,812
95,909
50,859
56,144
22,011
28,584
14,227
51,571
11,795
20,833
10,588
17,587
1,558
•
___12.
1.265.656
7,287
1,791
2,879
4,112
4,651
4,930
4,040
2,075
.2,099
3,280
1,736
(54)
5,019
1,090
5rS90
Adjusted
gross
income 2/
Amount o f
Tax
exmiption 21/ l i a b i l i t y &/
Tax
withheld
Balance of. Overpayment
Fayments on ta x due a t (refund, or
1948 deelara tio n 22/
1SU9 t a r i
filin e
1,907
5,591
6,621
14,895
15,165
U ,5 7 4
21,587
20,581
19,649
21,085
45,512
42,005
51,962
51,885
58,051
56,258
21,288
17,556
15,655
11,050
10,116
10,055
6,620
6,458
20,990
14,852
11,804
16,109
10,816
6,480
5,978
3,284
2,115
1,801
5,886
1,208
1,578
581
505
142
100
57
150
4
281
9
(55)
18
561.098
265,424
1,009,051
1,205,526
2,145,506
2,924,201
5,422,857
5,010,716
5,517,847
6,250,927
7,284,985
14,808,555
U , 906,417
12,015,198
9,695,957
12,677,685
7,492,857
4,595,964
5,000,551
2,555,259
1,970,545
1,590,050
1,585,064
1,185,725
1,071,506
4,054,251
2,717,601
1,924,696
2,659,598
1 ,6 7 5 ,7 U
1,165,989
844,506
652,508
485,649
587,631
1,155,456
554,545
290,723
192,616
234,178
119,172
184,524
90,180
105,057
48,550
52,532
18,279
13,362
27.332
142.066.885
221,844
693,853
642,871
1,207,173
1,489,129
1,528,215
2,517,686
2,570,649
2,889,881
5,572,801
7,027,564
6,551,016
6,177,126
3,817,669
4,518,895
2,195,151
1,116,602
676,496
474,850
565,724
269,500
214,528
171,920
145,172
465,169
245,184
140,461
155,469
74,468
42,070
25,755
16,528
11,041
7,860
18,165
5,859
2,400.
1,244
1,210
475
515
181
152
41
57
6
4
8
50.857.156
2,965
620
17,464
54,741
69,950
2,907
70,450
91,057
4,810
116,965
149,916
8 ,810
184,240
214,564
14,183
250,785
275,548
14,706
520,946
568,742
19,609
585,652
426,909
23,078
458,229
484,580
26,964
476,419
552,954
32,561
1,006,616
1,092,258
69,128
983,619
1,040,167
75,752
899,935
919,551
80,698
787,111
770,260
81,024
1,119,689
1,042,051
159,685
757,712
607,914
161,018
472,055
554,908
U S ,846
544,668
210,864
108,165
286,812
158,259
104,610
252,268
125,196
9 7 ,SU
214,571
95,585
90,809
196,008
80,095
86, 9U
175,004
65,856
82,285
164,195
58,002
81,589
684,158
219,595
858,891
526,578
145,176
500,275
418,906
101,549
245,845
654,652
156,440
899,242
481,756
85,999
809,094
574,182
56,481
245,708
298,126
59, 012
198,059
284,070
29,384
159,559
188,812
21,664
U 0 ,8 5 1
157,020
17,014
n o , 285
505,298
45,992
866,546
256,028
17,710
194,069
146,878
7,156
U 6,998
100,541
4,660
79,400
127,101
4,669
102,270
67,454
1,759
57,984
105,851
2,214
87,559
52,015
591
45,650
61,775
456
55,578
28,189
528
26,597
51,559
24,626
111
7,771
22
7,312
7,856
2
4,801
15.287
14.846
18.441.529 10.156.492 _ 5.176.055
6,814
7,119
10,954
15,063
22,501
16,965
18,125
21,870
15,635
13,805
15,118
5,467
13,411
7,020
6.355
5/657,847
928,133
1,088,956
1,021,985
1,585,186
1,573,482
1,737,640
2,384,681
1,664,073
1,971,856
2,035,488
1,549,793
2,465,019
1,507,157
1.007.S70
496,297
2,665,221
1,841,021
1,846,582
2,511,645
2,217,958
2,510,955
2,815,979
2,049,751
2,255,102
2,179,084
1,485,604
2,540,656
1,298,564
894.508
6,136
5 9 ,U S
48,165
22,313
35,054
29,591
29,556
44,522
24,751
30,249
s 52,782
: 18,446
56,166
20,515
17.251
40,087
8,476
6,278
7,061
8,127
6,744
5,229
6,858
4,986
4,269
6 ,U S
2,772
6,510
5,429
9.514
•am
m
e
'em
em
•
:
•
406
4,749
8,285
U , 556
16,596
19,255
22,478
25,848
28,713
30,062
67,264
68,521
66,151
65,927
99,701
85,699
74,204
62,699
57,655
52^619
48,751
45,526
40,652
57,998
U 7 ,7 0 S
118, SU
95,606
147,517
106,570
82,949
64,064
50,875
40,459
SS)191
102,508
48,526
25,254
18,091
22,621
8,764
16,068
8,500
6,266
1,679
7,052
457
2,554
941
2.207.146
' *
•
m
-—
• «.
._
..
*
15,525
42,846
55,629
55,017
60,905
58,725
89,882
92,205
101,827
119,187
222,029
198,791
166,459
U 0 ,1 0 1
181,695
U 6,917
50,925
56,565
28,713
22,860
U ,5 7 6
16,321
13,747
U ,S 9 5
52,058
35,886
22,092
28,464
17,906
11,002
6,010
5,749
4,165
5,468
9,548
4,281
2,609
1,508
2,449
1,074
1,970
526
527
415
449
2 .0 9 8 .1 4 0
46,228
67,589
54'439
29,575
43 ) 183
36'535
54'764
51,180
29^788
ÌA,519
88', 912
21,216
42*676
23,741
26'. 556
1
2
8
5
6
7
8
9
10
11
4
12
18
14
15
16
17
IS
19
20
21
22
28
24
25
26
27
28
29
SO
51
52
88
84
85
56
57
58
59
40
41
42
48
44
45
46
47
48
49
SO
51
52
58
54
55
56
67
58
59
60
61
62
65
64
65
66
Taxable returns with adjusted gross in—
oone under 65,000 and nontaxable returns
62,609
110,950
177,596
483,835
S / l0 6 ,914,036
68,884,957
5,956,651
6,907, 637
578,788
435,759
1,965,522
67
Taxabl« returns with adjusted gross
48,872
58,594
l t156f977
271,292
56,601,960
11*154*878
9*484*887
5*705*042
4*725* 519
1,771*392
713*061
68
ita'-'*
-"taxable returns and b* adjus,
gross income classa* —
. Pov+ r
. 1 1 __a._____—
urana
67 I T ax a b le r e t u r n s w it h a d ju s t e d g r o s s i n cone under 8 5 ,0 0 0 and n o n ta x a b le r e tu r n s
able returns with adjusted gross
Trí+,?Jfé-I ^
7 ^ ^ |r.?*'?rnr.5°r
62,609
110 ,930
1 77 ,596
483,835
2 / 1 0 6 ,9 1 4 ,0 3 6
6 8 ,8 84,957
5 ,9 5 6 ,6 5 1
6 ,9 0 7 ,6 3 7
578,788
435,759
1 ,9 6 5 ,5 2 2
67
« 8 .8 7 2
58.894
X . 156,977
271,292
5 6 ,6 0 1 ,9 6 9
1 1 ,1 5 4 ,8 7 8
9 ,4 8 4 ,8 8 7
5*705,042
4 , 725, 519
1 ,7 7 1 ,3 9 2
715,061
68
19^a>,^ t?*ab}aand n o n ta x a b le
Ä
^
r
0"
r e t u r a s and by a d ju s te d g r o s s in c o a s c l a s s e s — P a r t I , a l l r e t u r n s ; P a r t II, r e tu r n s w it h sta n d a rd d ed u ctio n » P a r t ttt
° r 1088 f r a ” 88011 ° f t h e a—
1
a d ju s te d g r o s s i n c - e , a d ju s t e d g r a s i I n n o « , d e d u c t io n s , ex em p tio n , Ü T * “
•
no/
Adjusted gross incoéis cla sses 1/
23
24
Zi
26
27
28
29
80
81
82
SS
84
88
86
87
88
89
40
41
42
48
44
45
48
47
48
49
SO
a
52
58
54
55
56
67
58
59
60
61
62
65
64
65
66
67
68
Taxable returnst
0 ,5 ander 0 .7 5
0 .7 5 ander 1
1 ander 1.25
1 .2 5 ander 1 .5
1 .5 ander 1 .7 8
1 .7 5 ander 2
2 ander 2.25
2.25 ander 2 .5
2 .5 ander 2.75
2 .7 5 ander 8
8 ander 8 .5
8 .5 ander 4
4 ander 4 .5
4 .5 ander 5
5 ander 6
6 ander 7
7 ander 8
8 ander 9
9 ander 10
10 ander 11
11 ander 12
12 ander 18
18 ander 14
14 ander 15
15 ander 20
20 ander 25
25 ander 80
80 ander 40
40 under 50
50 ander 60
60 ander 70
70 under 80
80 ander 90
90 ander 100
100' ander ISO
150 ander 200
200 ander 250
250 ander 800
500 ander 400
400 ander 500
500 ander 750
750 ander 1,000
1.000 ander 1,500
1,500 ander 2,000
2.000 ander 8,000
3.000 ander 4,000
4.000 ander 6,000
5.000 or nore
T otal taxable re to res
iontaxable returnst 88/
No adjusted gross lnocsie 5/
Under 0 .6
0 .5 under 0 .7 6
0 .7 5 ander 1
1 ander 1 .2 5
1 .2 5 ander 1 .5
1 .5 ander 1 .7 5
1 .7 5 ander 2
2 ander 2.25
2 .2 5 ander 2 .5
2 .5 ander 2 .7 5
2 .7 5 ander 8
5 ander 5 .5
8.6 ander 4
4 o r nore
T otal nontaxable returns
Grand t o t a l
axable return s with adjusted gross in oone ander $5,000 and nontaxable returns
axable returns with adjusted gross
ot $5.000 or nore
ru u XX# •xubiuxuio fvxm dxiuujianu ucuuuTXOfl
xuouBm ciAss»9s ana nonev
! Nunber f S a la rie s
Annuities
! of
! and
Rents and ro y a ltie s 1$/
nwideads ¿1/ In te re s t Jg/'and
— returns I w a n , 10;
Denstona 15/
Net losa
369,210
1 1,084,775
963,417
1,410,380
1,590,835
1,581,701
2,078,252
1,965,140
1,999,226
2,104,585
5,645,795
2,864,722
2,139,879
1,528,968
1,571,904
795,754
408,552
242,653
170,255
150,054!
90,286
68,762
53,111
41,928
118,195
49,509
22,749
19,575
6,842
2,995
1,522
825
527
292
479
no
22
18
Id
2
2
2
-
252,7561
859,553 i
997,486•
1,7X8,117
i,5n,217
£,714,480
3,994,068
é , 279,885
4,816,217
5,504,195
10,794,908
9,688,618
8,048,159
6,264,105
7,160,462
5,860,056
2,020,442
1,192,182
852,640
662,087
450,174
556,679
272,462
214,035
660,902
515,554
165,767
154,705
59,175
29,724
16,176
10,056
6,925
3,102
7,710
1,955
592
194
105
6
15
59
—
-
1,647
6,867
6,854
14,710
16,593
15,859
19,596
20,559
20,512
22,885
50,652
50,596
51,855
47,647
86,545
73,885
67,665
65,454
56,594
55,452
47,5SB
41,457
35,561
32,750
1 1 0 ,7 U
65,862
58,655
45,071
21,878
U ,6 5 1
8,456
5 ,9 U
5,548
2,412
5,154
1,016
524
47
79
2
14
1,085
-
1,235
5,500
5,978
9,505
11,419
10,651
12,855
12,020
14,537
17,067
52,156
52,835
28,620
25,049
58,998
54,689
26,069
21,672
19,255
16,651
15,816
U ,0 8 2
9,490
8,624
27,047
14,278
7,875
8,295
5,310
1,475
1,005
684
565
168
460
166
22
34
54
7
10
8,270,112
821,687
1,712,880
808,607
1,066,295
628,646
1,828,909 1,027,188
1,037,800 1,006,861
976,298 1,172,905
1,185,206 1,691,480
665,155 1,092,215
746,102 1.416.744
698,592 1,474,581
878,477
905,1 U
655,406 1.760.745
280,859
888,498
185.658
466.282
6,798
15,£52
17,159
20,796
11,805
7,908
8,957
4,592
5,882
4,518
1,681
2,441
817
5,794,478
Tor foo tn otes, see pp. 16-17} fo r extent to whioh data are estim ated, see p. 6,
97
16,518
47,043
45,690
143,162
166.231
158,468
271,172
250,695
280.231
551,885
646,187
655,255
616,790
597,322
815,297
690,957
565,026
468,586
410,788
361,560
509,385
262,795
222,851
195,127
654,466
385,294
205,628
216,977
102,453
54,167
28,460
1^ 751
12,591
9,462
18,529
88
4 ,1 0 1
2,837
13,850
14,624
26,595
31,172
32,069
59,051
51,418
69,350
87,200
174,158
155,785
189,624
185,429
274,682
274.106
224.106
195,907
193,934
178,571
155,783
141,060
120,700
112,077
404,372
239,862
145,521
177,322
82,678
46,167
80,712
18,974
12,503
8,249
16,485
8,940
984
767
74
189
778
761
1,566
2,019
2,388
5,713
5,408
5,154
5,876
11,282
9,491
8,811
6,884
7,841
7,294
4,049
2,674
2,134
1,680
1,519
998
847
885
2,435
1,048
653
653
. 282
172
65
44
85
21
(85)
(85)’
1,075
1,086
2,152
793
•2,271
2,666
6,334
6,515
5,398
10,324
9,064
9,387
U ,4 7 6
17,273
16,277
17,588
11,268
18,912
15,122
7,173
6,552
5,103
5,082
3,070
2,707
2,769
2,577
8,686
4,041
2,643
3,002
1,640
914
563
179
395
260
557
38
92
17
249
z
1
üäL
221
881
885
999
1,110
1,074
1,451
1,417
2,444
3,062
2,603
2,987
6,754
4,002
1,962
1,399
1,346
1,284
1,205
737
748
540
2,642
1,711
1,108
850
442
345
184
243
80
85
60
75
1
Sales or exchanges
of c a p ita l
503
2,854
2,830
8,408
10,675
9,765
16,544
16,852
21,974
24,411
46,285
55,658
56,805
48,893
83,889
87,697
65,634
52,950
46,535
42,843
55.810
29,356
24,996
21,037
68,638
40,598
26,547
28,255
16.811
10,451
7.127
5.128
6,030
3,086
9,823
5,516
1,846
(54)
1,145
927
2,033
2,075
2,381
5,164
3,545
3,368
5,819
7,367
7,643
5,684
6,228
6,855
7,406
5,097
4,320
3,304
8,528
2,566
2,289
1,708
1,480
4,619
2,276
1,148
1,052
406
180
94
89
57
18
52
4
2
2
1
2,888
1,272
461
927
(55)
TI I T
2,630
7,685
12,555
14,842
9,964
8,702
5,950
4,811
5,654
2,425
(84)
(84)
(84)
(54)
616
16
_
_
_
—
9,524
15,820
18,587
21,584
12,654
7,619
9,178
8,844
5,891
2,822
1,857
2,487
88
Partnership 16/
-
•
~
m tM A w p i
2,255
8,588
7,055
20,265
22,077
17,716
29,702
26,097
28,484
52,892
75,116
74,122
65.917
54,654
86,646
74,328
55,505
44.199
86,748
84.200
30,489
24,729
20,586
17,895
64,711
56,227
21,255
28,556
11,008
5.917
8,679
2,246
1,900
596
1,904
752
117
878
424
-
j
I
2
E K F F JE 33!
(54)
1,387
1,101
5,568
6,297
5,991
5,088
5,978
4,198
5,002
9,153
6,559
6,925
5,410
7,551
5,998
2,918
1,968
2,371
1,252
1,527
1,091
802
681
2,204
1,054
776
698
158
67
77
24
25
4
7
13
Business and
J2E2Út23lotLl5¿
W » - - J r u i^ in - i.y k m . r r m —
26,409
42,970
45,697
58,535
31,621
81,929
51,690
17,885
21,800
4,867
2,751
1,797
5,290
2,457
1,782
2,164
1,108
975
1,428
397
689
896
75,739
142,121
192,176
307,560
296,182
508,855
408,885
248,485
268,111
271,658
150,276
278,567
188,905
JUS, JSU51
27,084
17,528
18,281
16,878
10,859
9,384
8 ,,088
18,,811
18,811
20,969
88,842
80,202
6,185
4,260
2,009
1,519
5,871
1,658
980
1,084
1,190
825
(54)
950
(54)
9,778
11.521
12,681
18.521
15,150
9,858
16,211
9,274
11,511
8,886
5,787
8,718
4,841
H
6,571
8,881
4,016
4,806
8,172
1,726
2,047
1,180
1,444
1,196
525
765
636
i
2
8
4
5
6
7
J
9
10
11
12
15
14
15
16
11
18
19
20
21
22
28
24
25
Tabla 2 . - Individual returns fo r 1948, by taxable and nentaxabla returns and by adjusted gross ineone classes — Part I , a l l returns; Part H , returns with standard deduction} Part XXX,
returns with itemised deductions I Number o f returns. Income or lo ss fro « each of the sources comprising adjusted gross lnooae, adjusted gross lncone, deductions, coemption, ta x
l i a b i l i t y , tax payments, and tax overpayment - Continued
PART H . - RETURNS WITH STANDARD DEDUCTION ¡¡J - Continued
onsv figures il thousands at d zU a eu _________________
Seles or exchanges of
property ot her than
cap ital ass eta 18/
1
2
s
4
S
e
7
8
9
10
U
12
1S
14
15
16
17
18
19
20
21
22
28
24
25
26
27
28
29
50
51
52
55
54
55
56
57
58
59
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
SB
59
60
61
62
63
64
65
66
67
raxable returns!
0 .5 under 0.75
0.75 under 1
1 under 1*25
1.26 under 1 .5
1 .5 under 1.75
1.75 under 2
2 under 2.25
2.25 under 2.5
2 .5 under 2.75
2.75 under 5
5 under 5.5
5 .5 under 4
4 under 4 .5
4.5 under 5
5 under 6
6 under 7
7 under 8
8 under 9
9 under 10
10 under 11
11 under 12
12 under IS
15 under 14
14 under 15
15 under 20
20 under 25
25 under 50
50 under 40
40 under 50
50 under 60
60 under 70
70 under 80
80 under 90
90 under 100
100 under 150
150 under 200
200 under 250
250 under 300
300 under 400
400 under 500
500 under 750
750 under 1,000
1.000 under 1,500
1,500 under 2,000
2.000 under 5,000
5.000 under 4,000
4.000 under 5,000
5.000 or more
Total taxable returns
Nontaxable returns! 55/
No adjusted gross income jj/
Under 0 .5
0 .5 under 0.75
0.75 under 1
1 under 1.25
1.25 under 1 .5
1 .5 under 1.75
1.75 under 2
2 under 2.25
2.25 under 2 .5
2 .5 under 2.75
2.75 under 5
5 under 3 .5
5 .5 under 4
4 or more
Total nontaxable returns
Qrand to ta l
(54)
504
(54)
8Ì4
877
598
688
899
1,505
l j 551
4*205
2,865
5,641
2,988
5,018
3,944
2^604
2,062
1,452
1^625
1,407
1,046
1,220
989
2,507
1,597
725
745
299
505
65
10
14
5
69
(55)
(54)
(54)
728
686
(54)
1,095
'662
755
626
2,128
1,618
1,597
2 jl2 8
4,824
1,445
1,251
807
929
655
452
552
548
520
848
512
541
591
250
66
16
15
5
24
55
m
*
26
(55)
-
•
me.
j»
cm
-
•
' VÎ ”
Income from
estate* end
tru ste 1$/
SIS
2,197
1,597
5,510
5,967
5^260
4,870
5,852
S'466
5,525
10,655
9,516
1^,096
8,470
21,220
20,645
16,668
14,508
14,474
15,940
12,607
10,040
9,909
7,851
29,667
17,045
11,506
12,818
6,100
5,588
2,914
1,910
959
902
2,698
1,155
229
267
512
2
1
(55)
Miscellaneous
income 20/
1,860
4,401
4,694
12,214
11,956
10,071
16,965
is,no
14,505
15,690
51,557
52,065
25,722
25,060
22,721
21,747
15,859
11,491
9,147
7,589
6,155
6,251
4,560
5,851
12,655
6,420
5,590
4,465
2,492
1,058
258
445
247
86
545
270
(55)
8
5
(55)
mm
-
*»
me
m
m
_
me
mm
“
*!>
*
Adjusted
Amount of
exemption 21/
S S L u
258,807
945,172
1,081,417
1,952,711
2,580,501
2,964,028
4,411,154
4,665,587
5,254,505
6,044,568
11,854,201
10,705,558
9,071,047
7 ,2 5 5 ,SB2
8,557,590
5,112,787
5,040,942
2,055,226
1,611,074
1,561,094
1,055,895
868,500
715,764
606,778
2,018,654
1,091,803
619,152
666,955
502,842
162,855
98,059
61,614
44,554
27,665
56,705
18,709
4,989
4,890
4,905
902
1,232
as
2,278
m
mm
m
217,926
650,865
578,050
1 ,U 1 ,*2 8
1,508,511
1,500,065
2,228,812
2,149,054
2,411,651
2,958,779
5,571,050
4,855,114
5,872,805
2,810,489
2,886,582
1,465,828
759,770
456,905
521,174
247,580
173,197
152,285
102,496
81,052
228,590
95,781
44,139
58,428
15,099
5,675
2,849
1,561
1,015
562
876
194
40
27
14
2
5
me
2
m
«•
—
*
Tax
lia b ility
Tex
withheld
2,902
55,574
65,594
107,871
168,965
227,450
289,717
640,464
585,581
412,209
849,175
804,508
719,555
621,542
806,855
552,518
545,185
247,292
204,643
181,759
148,655
127,462
111,066
97,855
559,891
225,500
144,598
178,558
95,284
57,622
57,696
25,465
19,222
12,452
27,608
9,883
2,717
2,770
5,175
556
655
17,257
66,780
85,495
157,150
192,971
245,140
528,124
569,296
415,695
448,665
886,900
815,226
704,656
582,456
719,052
417,607
¿28,910
159,485
100,994
81,659
54,165
42,669
54,541
27,657
88,204
45,656
25,175
22,100
9,026
4,567
2,524
1,495
1,151
552
1,088
414
81
18
15
1
2
me
mm
1,762
—
—
«•
9
«•
•
-
Payments on
1948 decla
ration 22/
Balance of
tax due a t
time o f
J U l U ______
Overpaymant
(ralbad, or
créd it on
M tf t « ) ..
678
2,452
5,886
7,506
10,747
10,855
15,540
16,575
19,475
25,458
51,056
51,816
58,011
59,116
105,256
107,678
80,770
76,770
75,891
69,797
65,172
67,758
52,981
48,585
187,688
125,721
80,567
105,778
56,594
54,708
25,528
16,151
11,561
8,015
17,952
6,585
1,807
1,804
2,084
525
642
181
4,518
7,185
8,918
14,586
16,557
19,265
22,222
24,515
25,437
56,717
57,711
54,621
54,872
76,096
65,991
58,985
49,504
44,770
42,298
58,195
54,595.
29,884
27,354
102,591
66,663
45,501
56,887
51,654
19,246
12,291
8,159
6,712
4 ,0*6
8,892
5,118
874
949
1,078
51
9
15,515
40,164
28,949
46,485
49,292
44,882
75,008
67,627
7 5 ,9 0 ^ .
85,550
145,479
120,246
97,912
75,085
91,528
58,955
25,478
18,266
14,815
11,996
8,880
7,559
6,558
5,719
16,591
10,621
4,445
4,204
1,770
960
648
545
292
169
525
54
45
(55)
mm
1,651
•
—
•
m
1.745.815
-
106,128
370,945
88,485,649
27,479
15,847
255, e o o
139,019
80 ,142,807
•
' me
mm
—
mm
21
22
25
24
25
26
27
28
29
50
51
52
55
54r
55
56
57
58
59
40
41
42
43
44
45
46
47
48
49
1.255.626
291, 9S 4
2 , 000,670
26,901
me
—
.m*
-
850,284
0, 004,208
41,668
•
W
1.204.126
1 , « L 5, 2 S 1
7, 058« S I S
2,625,990
1,778,408
1,752,278
2,215,212
2,057,272
2,175,861
2,675,685
1,850,775
2,068,280
2,002,196
1,270,807
2,259,218
1,099,747
655.515
15
14
15
16
17
18
19
20
*
1.390,881
5,670,844
918,727
1,045,886
957,776
1,495,404
1,407,857
1,587,492
2,227,088
1,410,592
1,773,655
1,822,110
1,089,021
2,104,210
1,050,558
615.095
12
•
567,847
5, 088,501
6,565
9,918
12,525
19,794
15,062
15,414
19,46B
10,861
11,950
13,272
5,598
9,526
5,215
2.114
6
7
8
9
10
11
49
•
**
•
380,700
58,447,696
1,196
2,264
3,051
5,891
2,824
2,295
1,285
1,078
2,014
706
(54)
(54)
(54)
(54)
5
4
5
«•
■»
—
«•
*m
7,127
4,745
5,596
5,586
4,178
5,426
4,706
3,089
2,964
3,645
1,059
2,616
881
516
5,806
1,564
1,501
1,276
945
709
1,552
(54)
681
245
(34)
724
(34)
(34)
2
(55)
65,742
51,778
25,572
58,828
29,654
29,266
44,965
20,690
27,706
30,477
12,454
28,315
14,457
7.537
SB,615
47,054
19,977
55,242
25,461
25,810
40,255
17,601
24,745
26,852
11,418
25,700
15,578
6.820
625
1,202
1,502
1,221
2^774
1,556
2,801
2,198
1,655
1,878
7601
815
1,048
(54)
f»
161
*
1
«*
—
—
—
•
—
—
—
50
SI
52
55
54
55
56
57
SB
SB
60
ea
62
65
64
65
66
Taxable returns with adjusted gross in—
under % 5,000 and nontaxable returns
¡
Tabi« 2. — Individuai rotura» for 1948, by taratolo and nontaxable return« and toy adjusted gross income classes —— Part I, all raturn«) Part XI, returna vlth standard deduction; Part III,
raturas vitto ltealsad deductions* Huabar of roturas, Incoas or loss fron each of tbo sources comprising adjusted gross Incorno, adjustod gross Income, deductions, exemption, tax
liability, tax payaanta, and tax overpayment — Continued
67
I
sa
Qrand t o t a l
Taxable retums «ith adjusted grosa in —
cône under 5,000 and nontaxable raturas
iTaxable returns writh adjusted gross
%
,
09.167 1
4 1 .668 1
i
87,479 1
2 6 ,9 0 1
106,128
370,945
8 8 ,4 8 5 ,6 4 9
15,847
255,600
X30,OXÔ
50,142,547
6S.G07.212
5 8 ,4 4 7 ,6 9 6
9 .0 5 2 .7 4 4
5 ,0 2 8 ,5 0 1
7 .7 1 5 .6 1 6
5 ,6 7 0 ,8 4 4
1 .7 9 6 .9 2 1
580,700
1 . 2 « .1 2 6
567,847
1*882.815
1 ,5 9 0 ,8 8 1
7,050, 5X6
4,004,248
2,044,670
1,415,251
856,284
291,9S4
Table 2. — IndiTidoal rotrumo toT 1948, by taxabla and nontaxabla retorna and by adjuntad groas incoan« oXaasas — Fort I, aXl retorna) Part 11, returna vlth standard deduc-tionj Part n i ,
n t a m s wlth lteaised dsdootlonat Nunber of returas, Incoas or loas frota saeta of tbs sonrosa ooapriad.ng adJustad groas incoas, adjustsd groas inoome, dsductions, eor.emption, tax
liablllty, tax paynants, and tax overpajaent - Continuad
PART XU* - RETURNS VITE ITEMIZED DEDUCTIONS gf/
<kA
Adjusted gross Incase classes Jj
Nimbar
oí
roturas
Taxabl* returna)
0*6 under 0.75
0 .7 S under 1
1 under 1.25
1*25 under 1 .5
1 .5 under 1 .7 5
1 .7 5 under 2
2 under 2 .2 5
2 .2 5 under 2 .5
. £ .5 under 2.75
2 .7 5 under 5
5 under 5 .5
5 .5 under 4
4 under 4 .5
4 .5 under 5
5 under 6
6 under 7
7 under 8
8 under 8
9 under 10
10 under 11
11 under 12
12 under 15
15 under 14
14 under 15
15 under 20
20 under 25
25 under 50
50 under 40
40 under 50
50 under 60
60 under 70
70 under 80
80 under 90
90 under 100
100 under 150
150 under 200
200 under 250
250 under 500
500 under 400
400 under 500
500 under 750
750 under 1,000
1.000 under 1,500
1,500 under 2,000
2.000 under 5,000
5.000 under 4,000
4 .000 under 5,000
5.000 or nore
T otal taxable returas
Montaxable ro tu ras: 55/
Do adjusted groas income §/
Under 0 .5
0 .5 under 0.75
0 .7 5 under 1
1 under 1.25
1 .25 under 1 .5
1 .5 under 1 .7 5
1 .7 5 under 2
2 under 2.25
2 .25 under 2 .5
2 .5 under 2 .7 5
2 .7 5 under 5
5 under 5 .5
5 .5 under 4
4 or nore
T otal nontaxabla returas
Qrand to ta l
Taxable roturas with adjusted groas in
ceste under $5,000 and nontaxabla roturas
Taxabla roturas with adjustad groas
incoas o f 55.000 o r ñora_________________
W
<™?<™ < "■ « » p i»«««,
in im itiés
In te re s t 12/ and pen
* * * * * Ü/j
sions JS/
mrA« . « r rt mrrnn <.
Rants and
ro y a ltie s 14/
Business and
profession 15/
Sa les or exchanges
Solas or exchanges
o f property other
Partnership 16/ o f c a p ita l a ssets 17/ than c a p ita l
a esets 18/
Net
Hat
Rat
-g ift.
j£>23-
-197»
6,650
71,84«
108.054
157.964
211.054
244,615
281, « 0
588,577
579,219
451,065
914,625
855,545
695,558
519,969
758,591
589,074
181,694
111,907
78,264
58,188
48,267
42,049
54,864
52,056
118,245
72,912
47,8CCL
57,509
50,800
18,582
11,540
7,641
5,206
5,797
9,140
5,012
1,295
690
669
267
508
5,001
4 6 ,5 «
95,506
152.855
2«,7»
5 « ,0 4 2
495,210
7 1 5 ,5 «
861,412
1,081,515
2, « « , 4 »
2,860,546
2,617,579
2,157,559
5,414,177
1,871,946
990,015
« 5 ,« 6
456.855
572,664
525,865
5 « , 561
254,669
259,555
9 9 5 ,5 «
716,207
546,776
784,592
4 « , 567
555,756
2 5 5 ,4 «
174,657
128,972
100,005
275, « 2
108,069
45,975
28, « 7
27,881
11,479
14,171
4,061
5,558
2 ,5 «
847
(54)
(54)
1,944
5,485
4 ,5 «
12,195
10 8
15,29«
1 4,880
15,155
14,944
« ,6 8 1
55,949
54,521
56,797
71,080
7 5 ,9 «
5 6 ,2 «
47,707
46,755
45,211
46,559
41,577
42,242
45,592
211, «8
195, « 6
170,505
297,894
« 6 ,6 5 2
190,674
155,105
126,795
104,584
88,669
5 « ,8 «
168,865
95,411
« ,7 1 6
87,250
4 7 ,5 «
62, « 6
40,110
42,417
15, 9 «
17,956
7,755
4,458
_¿L £2
174
1,850
1 ,816
5,129
5,575
6 ,9 U
8,882
8,916
7,542
9,961
18, « 9
19,215
1 5 ,1 «
1 8 ,(0 8
5 2 ,2 «
24, « 6
1 7 ,7 «
15,457
14,081
11, « 1
U , 457
10,676
9,787
10 , 6«
49,015
« ,5 8 5
5 2 ,4 «
4 8 ,5 «
54,181
2 4 ,5 »
1 7 ,9 «
15,599
10,484
8 ,190
2 4 ,7 «
12,156
6,142
4,245
4,528
2,541
4,151
1,552
66,576
4,875
21,555
59,847
5 5 ,9 «
82,122
7 9 ,« 6
82,544
170,072
151,745
147,478
196,550
279,094
1 9 7 ,1 «
285.920
.« 0 . “ “
51,275
5,169
5,607
6,810
6,845
8 6
7 ,0 «
5 ,8 «
7,040
5,527
4,972
4,
5 ,« 5
5 ,9 «
16.285
1 4 ,4 «
6 ,7 4 4 ,9 « 16,215,050
550,895
199,244
72, « 9
2,084,008 1 5 ,« 2 ,0 5 2 5,285,572
500,994
» ,4 1 5
IOS
85
29
22
4
5
_______ 1
526,509
29,807
« ,5 0 8
9 7 ,5 «
78,199
119,684
92,810
85,850
119,550
« ,7 «
81,088
90,987
110,889
« ,4 2 7
,72*280
254
10
______ 2
,«
2, 1«
1,241
5«
»
125
2 .i
1,6«
5,752
4,649
5,745
7,520
4 ,5 (0
5 ,5 «
5,962
2,814
5 ,2 (0
«5
2,128
5 ,8 «
5,048
,«
7-898
For foo tn otes, sea pp. 16-17; fo r extant to which data are estia a te d , see p. 6.
215
804
,«
2 0
5,545
5,880
5,215
4 ,4 «
5, « 9
5 ,8 «
5 ,MI
5,807
4,810
5,762
6 ,5 «
4 ,0 «
2 8
2 ,470
1,584
1,552
1,461
1,0«
1,103
«9
4,689
4,758
2,449
5,612
2 ,7 «
1,649
1,555
1,557
7«
1,070
2,224
,«
8«
4M
275
186
2«
157
M
28
50
118
X
1,515
(54)
1,599
1 ,587
2 ,7 «
5,146
4 ,6 «
3,061
2 ,« 5
1,829
2,479
1,577
7«
(54)
e1*2SL
(« )
2, « 7 :
5,489
5,835
9,467
12, 8»
1 5 ,9 «
14,711
1 8 ,7 «
1 7 ,6 «
5 7 ,5 «
45,188
58, « 2
52, « 6
« ,4 5 0
46, « 2
29,952
2 7 ,4 «
22,5«
18,954
17, « 1
16,251
1 5 ,1 «
1 7 ,8 «
70,416
57,724
45, « 1
68,581
49,651
55,816
26,974
1 9 ,4 «
14, » 6
1 2 , 5M
59,544
17,774
9 ,0 «
7,586
8,415
2,472
8,597
4,878
2,850
1,449
«0
»
5
_____ 16
2 6 ,6 «
5,775
7 ,6 «
15,074
1 4 ,8 «
1 5 ,0 »
15, « 7
1 1 ,5 «
10,710
11,270
6 ,4 «
8,2«
1 0 ,4 «
6 ,9 «
9.426
7 6 6 ,7 «
(84)
»9
427
1 ,0 .7
1,6»
21
,»
2,116
2 ,5 «
5,
6, « 5
9 ,« 5
7,725
7.182
5,790
7,967
4, « 9
2 ,576
1,428
1.182
1,075
907
1,425
795
795
5,555
2 ,2 «
1,827
2, » 6
1,659
1,529
859
8«
«0
525
1 ,5 »
«1
5«
«6
2«
80
2«
»2
«
57
6
1
56
197
26,599
944
1,079
1 ,» 5
1.515
1,2«
1.516
1,718
1 ,7 «
1,149
5,129
918
1,8«
1 ,« 7
I .« *
i t osa
967
8 , 2«
575
10 , » 6
(54)
17,156
6»
« ,5 «
2,415
4 6 ,4 0
5 ,9 »
51,010
2,5«
71,975
2 ,4 «
6 8 »,52«
5 ,9 »
8 6 ,4 «
5 ,2 «
160,047 10,6«
9 ,2 «
178,0 U
154,595
8, 6»
150,456 1 2 ,5 «
2 7 5 ,1 « 17,104
2 « ,9 8 8 11,795
150,192
6,1«
4 ,2 »
151,514
118,528
4,242
5 ,0 »
8 8 ,4 »
8 2 ,8 «
5,279
» ,1 5 1
2,8«
7 4 ,5 »
77,625
2,766
544,211 1 5 , 2 »
2
« 2 10,787
215,815
8,542
295,797 14,177
1 « ,0 6 1 10,906
1 2 9 ,« 1
7 ,5 »
83, « 9
5 ,9 «
0 ,5 4 6
5,518
4 1 ,7 «
5 ,0 «
5 5 ,9 «
4 ,1 «
« , 5 2 0 12,079
55,241
5,724
5 ,4 «
14,575
2,950
8,402
11,502
2,671
4,811
1 ,5 «
18
5,958
1 ,4 «
1,2«
5,407
1,980
1,159
572
5»
246
2,536
»,
,«
5,771
2»
1«
— USL
1 9 , 5 « 644,456
5,210
6,748
8,971
5,112
1 5 ,6 «
5 ,2 «
22 ,6»
4,455
40,619
4,918
55,918
2,147
« ,7 «
4,1 M
« ,7 0 7
5 ,4 «
5 7 ,7 »
2,« 5
« ,5 7 2
2,875
5 7 ,6 »
8»
4 5 ,8 »
4 ,5 »
55,246
5 ,8 «
9. « 6
6 6 .4 »
9 7 ,6 »
,510,106 7 » , 816
« ,9 1 8
,151,426 1 7 7 ,9 »
(»4)
1,515
2 ,2 »
2,694
6 ,9 «
8,124
9, « 9
1 4 ,2 »
19,475
25,526
« ,9 M
5 1 ,« 7
6 2 ,MS
« ,8 4 1
125,105
1 1 8 ,0 2
7 2 ,0 «
« ,5 2 5
6 7 .0 0
52,016
5 1 ,5 «
50,065
5 5 ,2 »
« ,9 2 8
2 7 2 ,5 «
249,797
220,478
5 « , 082
2 « ,5 «
205,955
159,559
1 2 0 ,« 5
91,681
7 4 ,8 »
195,982
7 8 ,0 »
45,125
19,471
2 5 ,5 «
9,672
1 2 .0 0
6,559
1,878
5,157
«2
9
26
(54)
(84)
(« )
íai
578
277
1 ,9 »
9«
5 ,8 «
2,U6
2,920
4 ,2 «
7 ,« 5
8,278
2 ,8 0
1,075
1,541
1 ,« 0
1.272
1 ,M 7
668
1,786
4,974
5.272
2 ,9 «
4,491
2 ,4 «
1,6»
1,8«
1,860
«2
«9
5 ,0 7
1,680
8«
475
1 ,« 2
545
6«
1«
297
1«
70
20,1« 149,679
»0
1,1»
2 ,7 «
1,895
4,426
4,246
6 ,7 «
10,520
6,8»
10,195
9,021
12,721
9 ,7 »
(« j
(« )
(84)
(« )
(84)
(« )
(« )
(« )
(34)
(34)
(84)
8, 0«
8,10
8 ,2 0 5
22,8«
2 1 ,9 «
24, « 7
2 1 ,5 «
4 7 ,» 7
52, 8M
2 9 ,8 «
21,8«
21,055
15,080
1 4 ,9 «
14,257
12,440
15,277
60, » 1
51,078
42,520
6 9 ,1 U
« ,4 4 0
45,187
57,979
0 ,2 1 6
27,812
» ,5 »
» ,1 »
5 5 ,0 «
» ,0 0
51,776
41,970
2 7 ,0 2
48,184
22 , 2 »
2 6 ,1 «
15,475
1 5 ,9 »
4 ,1 »
5,112
-2 *& Z
45,987
1,2«
2,1»
2,921
2,224
5,546
2 ,7 »
4 ,060
4 ,1 »
2,621
5 ,8 «
2,0«
1 ,918
6 .5 »
4 « , 972 185,756
,095,557
(84)
278
788
2,241
8 ,9 »
4,486
4 ,8 «
6,970
56,079
(84)
545
4»
8»
2,176
7»
1 ,7 «
2, » 9
1,411
5 ,2 «
7 .0 0
7,015
09
929
918
1,817
2 ,2 U
1 ,4 »
8,646
(« )
(84)
(« )
(« )
185
848
2,b72
2 ,0 7
6 1
5 ,6 »
8 ,9 »
6 ,5 »
» ,1 7 8
21,976
1 2 , 007
1 2 ,4 »
11,555
10,027
9 ,5 «
12,572
U ,1 7 4
10,026
51,955
46,917
45, « 5
7 4 ,5 »
57,840
4 6 ,0 »
57,842
» ,9 «
2 6 ,4 »
21,910
95,211
4 9 ,7 «
55,915
0 ,7 4 4
» ,0 7 2
1 4 ,2 «
51,670
U ,7 9 5
» ,8 »
1 0 ,5 »
17,587
1 ,5 «
,»
6,1«
4 ,9 «
9,675
8 ,7 »
5.000
4,025
5 ,7 »
5,519
5 ,5 »
2,918
2,579
2 ,9 «
11,212
7 ,9 «
5,950
8,055
4 ,7 »
5,007
2,1«
1,592
Ml
7«
1 ,0 6
12,725
1,804
1,297
1 ,4 «
2,816
1,597
1,1«
1 ,4 »
1,795
1,229
1,247
1,046
2 , 000
1,077
1-988
Income
from
e sta tes
and
tr u s ts 19/
4,607
(84)
(« )
(84)
851
(« )
(« )
(84)
(84)
(84)
(« )
707
(54)
»1
1-462
66,844
(54)
(« )
(54)
(« )
,«
7,287
(54)
615
1,081
760
Miscel
laneous
in
come 20/
(84)
1,180
1,727
2,681
5, » 7
8 ,5 «
4,622
5,271
5,144
5,596
12,156
9,942
8,240
,«
8 8
1 5 ,0 0
14,491
7,429
,«
6 0
4 ,5 «
3,641
3,981
5 ,7 «
2,290
2,587
8,535
8,412
8,414
11,646
8, « 4
5,442
5 ,7 »
2,859
1,868
1,715
3,545
1,030
(54)
2,441
(54)
6,814
5«
1,066
2 ,7 »
2,507
5,881
2,711
2 ,4 «
2,774
1,876
1,846
1,874
5,» 5
1 8
,«
12
21
(84)
(« )
(« )
(« )
(54)
(« )
(« )
(« )
(54)
1,745
(34)
1,021
1, 2«
,«
2 2 7 ,1 «
75,402
» ,9 0
84,029
7 1 ,4 «
112,890
1 ,0 6 5 , « 5
« ,7 4 8
21,095
24, « 7
»3,»7
132,275
GO
Table 2 . - Individual returns far 1948, by taxable and nontaxable returns and by adjusted gross Incone cla sses — Part I , a l l retu rn s; Part I I , returns with standard deduction; Part I H ,
returns with itemised deductionsi Nunfeer o f retu rn s, income or lo s s from each o f the sources comprising adjusted gross income, adjusted gross income, deductions, exemption, ta x
l i a b i l i t y , tax payments, and tax overpayment - Continued
Adjusted gross income c la s s e s ¿/
axable returnss
0 .5 under 0.75
0 .7 5 under 1
1 under 1.25
1 .2 5 under 1 .5
1 .5 under 1 .7 5
1 .7 5 under 2
2 under 2.25
2 .2 5 under 2 .5
2 .5 under 2.75
2 .7 5 under 3
3 under 3 .5
3 .5 under 4
4 under 4 .5
4 .5 under 5
5 under 6
under 7
7 under 8
under 9
9 under 10
under 11
under 12
12 under 13
13 under 14
14 under 15
: 15 under 20
20 under 25
25 under 50
30 under 40
40 under 50
50 under 60
60 under 70
70 under 80
80 under 90
90 under 100
100 under 150
150 under 200
200 under 250
250 under 300
300 under 400
400 under 500
500 under 750
750 under 1,000
under 1,500
1,500 under 2,000
under 3,000
5.000 under 4,000
4 .000 under 5,000
- 5,000 or more
T otal taxable returns
lontaxable return s! 55/
No adjusted gross income ¡J
Under 0 .5
0 .5 under 0.75
0 .7 5 under 1
under li2 5
1 .2 5 under 1 .5
1 .5 under 1.75
1 .7 5 under 2
2 under 2.25
2 .2 5 under 2 .5
2 .5 under 2 .7 5
2 .7 5 under 5
5 under 5 .5
3 .5 under 4
4 or more
T otal nontaxable returns
Grand to t a l
6
8
10
11
1.000
2.000
1
Taxable returns with adjusted gross in—
come under $5,000 and nontaxable returns
Taocatol* returns with adjusted gross
PART I I I . - RETURNS WITH ITEMIZED DEDUCTIONS g|/ - Continued
lAQ.iua uoq groga incorno cxagggg ana »onoy ligurw i in ww*
-Deduct; on f o r - __________________________
Miscel
Medical,
Adjusted .
Net
T otal de Nat
Losses from den tal,
laneous
Contribu
gross
ductions income 31/ d e f ic it H J
In te re s t 26/ Taxes 27/ f i r e , storm, e t c . , ex- deduc
tio n s 25/
income 2/
e t c . 28/
nenses 29/ tio n s 50/
4,617
63)859
122*108
190*795
343,900
458)829
599]562
852)260
996)422
1,240^417
2)974)182
3*201¡059
2)942)151
2)462)555
4)o2o)093
2)380*090
l)355)022
'947*305
742)185
609*449
554*155
524)564
469*961
464)528
2,035)597
l ) 625)798
1,305,564
1*972*443
1,370,871
1*005*136
*746)246
570,894
4 4 l)ll5
359*968
1,096*765
*515*656
285)784
187,726
229)273
118)270
185,292
90,180
100*759
48 j 530
52*532
15)279
I S ;862
27.332
42.912.095
45
4,114
7*,711
U.; 493
2 0 ;365
25)802
32)573
44)288
49)920
58)347
158)442
14l)241
126)905
105)020
154)399
93)217
52)074
36)910
29)080
24)839
21)945
20^483
18)129
17,776
73)361
55)270
41)706
62,275
41,918
31)115
25,287
18)525
14)925
12)415
42,335
23,242
15,878
9,711
12)730
6)649
11,352
6,595
7,668
3,804
3,866
1,121
1,280
4.098
1.756.240
(54)
240
796
1,552
1,874
2,554
3,701
4,972
5,205
7,155
16,485
18)087
16,534
15,945
19,766
12,423
6,873
4,635
3,228
2,491
2,023
2,149
1,674
1,525
5,552
3,720
2,969
-4,468
2,564
1,877
1,362
1,159
809
557
1,904
785
402
517
284
87
827
142
68
6
90
61
4,124
9,843
13,642
21,131
27,887
53,572
46,163
52,709
58,162
127,876
124)130
103,981
78,648
104,329
62,920
52,107
22,993
16,120
12,508
10,751
8,970
6,193
5,804
20,741
10,758
6,898
7,456
3,540
2,069
1,077
661
764
273
161
49
34
16
7
5
9
1
«.
•
e.
-
31,153
10,357
18,799
34,014
55,089
55,088
54,657
54,795
75,925
65,665
65,555
73,955
112,470
80,895
176.591
942.581
10,843
2,122
2 ,7 9 6
4,923
5,714
8 ,6 7 5
8,621
7,781
15,154
14,082
12,797
16,217
27,729
22,235
70.596
228.283
4,234
51,225
94,115
148,606
271,684
562,983
478,435
682,631
798,442
1,002,282
2,407,884
2,598,896
2,390,630
2.000.676
3,291,087
1,939,858
1,104,353
771,934
609,761
500,301
. 458,597
458,922
596,014
594,792
1,752,586
1,427,119
1,158,531
1,760,570
1,253,058
904,852
673,414
515,767
397,126
524,507
982,758
458,504
252,387
164,042
200,573
104,717
159,460
77,455
87,771
42,497
45,960
11, 776
11,429
21.110
85.965.613
-
m
•
-
-
«*■
•
«
«
-e
-
m
«S
•
-e
«*
«
•
m
—
«
«
•
«
«
me
•
-
«
-• -
5,500,288
68
810,655
4,102,587 15,052,144
724,128
5,786,662 22, 872, 967
-
4,095,362 5,480,639 1,658,572
742,432
157,678
966,345
467,214
065,1*2
86,551
1
2
S
4
5
54
55
56
57
58
59
60
61
62
65
64
65
66
67
557,880 1,018,098
536,512
991, 9*76
212
2,682
4,680
6,552
11, a 5
15,045
16,874
24,576
27,925
55,787
76,550
78,545
68,547
55,018
90,167
57,962
25,447
18,297
15,900
10,864
9,696
8,762
7,409
7,676
55,462
24,765
17,649
24,260
16,156
10,042
7,562
5,406
5,961
5,299
9,225
4,247
2,464
1,506
2,449
1,074
1,970
526
278
415
•
46,228
40,087
1,847
1,349
2,661
1,550
•
5,801
1,465
4,556
2,541
6,701
2,571
5,528
1,803
•
6,217
2,150
9,048
1,897
•
6,813
1 ,505
8,455
2,488
— 1
8,764
1,753
1 4 ,5 a
3,894
•
9,284
2,548
19.219
8.798
, »
153.255
76.150 __________ Z.
995.769
3.506.370 1.008.021
574,641
67,912
198,088
5,479
28,862
51,836
54,452
112,900
96,677
104,310
180,616
158,581
149,827
187,411
247,908
178,158
229.456
1.769.468
888,757
Overpay
ment (re
fund, o r
cred it on
1949 tax)
25
42
433
475
1,050
944
1|0S8
1,202
5,456
2,060
2,898
3,871
4,269
3,626
505
4,400
7,489
4,625
9,103
10,547
18,087
10,810
21,916
11,530
22,682
21,908
11,055
23,605
56,419
19,708
55,542
33,076
15,219
15,595
31,395
12,885
30,919
10,321
27,516
10,556
27,637
10,731
29,155
10,748
29,304
10,664
35,004
55,114
171,203
a , 648
174,554
50,105
163,476
90,430
295,466
74,936
252,700
63,703
210,935
a , 775
174,551
42,716
143,408
55,747
119,290
29,155
102,270
95, 416
348,594
45,408
187,684
24,380
115,191
77,596
17,142
21,543
100,186
8,733
5 7 ,4 a
16,0S9
86,897
8,300
45,650
53,747
6,105
1,679
26,597
24,626
7,052
457
7,312
2,554
4, s e a
941
14.346
3.430.220 1 .0 0 Í.0 2 1
6,136
496,297
498
37,231
—
l,ia
62,613
2,336
94,105
1,812
96,453
4,130
160,666
—
5,726
135,103
4,067
142,295
7,150
•
218,975
5,506
■—
164,822
5,950
•
176,888
7,051
212,797
••
«•
10,466
281,419
6,735
198,818
.em
10.431
261.188
77.104
2.739.649 __________ •
14.532.683 6.408.785 2.895.164
928,150 1,236,795
10,437,261
2,448
334
207
873
1,176
1,194
2,355
4,250
2,756
3,874
5,895
4,042
7,831
6,962
21.820
64.985
of tax
che a t
time of
f ilin g
207
65
5,918
5,1401,567
42,988
7,542
4,856
64,820
12,785
9,094
95,645
21,393
15,277
180,619
30,408
23,335
225,162
40,618
31,229
288,874
57,615
43,166
421,595
68,685
52,648
478,250
84,269
64,210
614,022
205,558
157,445
1,456,515
224,931
1,515,902
179,111
214,915
180,582
1,504,324
187,824
165,769
1,007,180
322,979
312,834
1,432,513
190,307
205,394
727,324
IO S,998
128,848
356,832
70,881
97,576
219,593
52,285
82,169
155,676
43,557
70,529
116,144
67,918 - 59,420
96,104
68,546
37,424
82,245
31,295
63,938
69,424
50,345
66,538
64,120
324,247
151,391
236,579
99,641
501,278
147,403
78,576
274,308
96,522
114,340
475,974
115,042
386,472
74,973
61,569
516,510
51,914
56,597
36,488
22,886
255,450
208,607
27,889
14,966
169,590
20, a s
10,027
16,462
144,588
7,298
42,904
475,690
17,289
17,296
246,143
5,645
7,055
2,361
144,161
4,542
97,771
1,217
4,646
123,926
1,196
1,758
66,878
472
2,212
103,198
513
591
52,015
181
447
60,021
ISO
328
28,189
41
31,359
111
87
22
7,771
6
2
7,356
4
15.287
9
.n “
11.798.974 6.408.785 2.818.060
688,999
4,429
2,609
1,641
1,759
2,342
1,186
1,511
1,058
1,024
1,805
571
1,570
2,254
11.369
724.128
8,206
2,448
4,415
7,015
7,529
10,739
10,023
9,106
12,246
8,971
9,457
11,580
15,699
10,602
20.974
148.992
2/18,450,387
584
12,634
27,995
42,189
72,217
95,847
121,128
169,650
197,981
238,184
566,249
602,164
551,521
461,680
729,006
440,232
248,669
175,575
152,424
109,149
95,738
85,642
73,947
69,757
285,011
198,679
147,033
211,872
187,834
98,285
72,855
55,127
43,989
36,660
113,994
57,532
33,347
28,683
28,699
13,554
23,832
12,725
12,988
6,035
6,572
1,504
1,953
6.222
6.946.460
1.059.806
m
3,292
1*129
1,114
2,402
3*086
5,550
■ 5,658
* * 5,756
9,647
6,712
8,070
10,551
16,196
11,744
20.989
111.460
2,651
l)OLS
% 3,355
5*092
4,645
9,078
7,508
7,002
11,607
9,278
9,464
11,039
15,997
11,420
15a442
124.491
154
1,357
3,815
6,779
11,442
15,859
19,301
26,007
32,000
40,781
92,282
110,316
116,385
105,942
216,628
13l)0O4
76,759
55,178
40,785
32,512
28,038
23,675
20,172
18,540
74,416
47,913
34,592
48,884
50,849
21,980
16,015
11,272
9,368
7,936
24,518
11,684
6,929
5,606
6,401
2,724
4,539
3,141
2,256
1,068
1,071
66
366
1.238
1.600.522
1
16
179.034
3,711
5,310
6,911
13,707
12,942
20,075
20,513
20,951
24,650
22,747
19,698
20,702
29,520
17,944
27.060
264.421
8/657.847
9,406
45,050
84,209
87,782
166,645
150,148
157,598
258,481
198,221
218,378
260,772
358,809
256,799
394a475
9/1.977.920
26,459,622
98
(54)
2,207
595
4,203
1,627
6,222
2)700
12,447
4,958
7)354
16)411
11,098
20)883
30,315
17)885
35)179
22)969
44,177
29)562
82,661
108,502
117,567
90)821
105)460
82)456
89,769
70)356
132,946
100)939
81)584
59,083
35)418
47,442
33)713
21)946
16,626
26,588
23)102
13,695
11,929
21,053
19)669
10)695
9,676
18,102
9,117
17,178
74,147
54,995
57,814
23,203
45,827
17,039
2/) 221
64,566
43,214
15,749
30,527
10,720
22,677
8,415
17,134
6,376
13,495
4,627
10,586
4)091
32,948
11,626
5,747
15,713
2,957
9,131
5,437
2,579
6,688
2,580
2,690
1,198
4,813
2,295
2,319
718
2,668
347
l)0 5 0
106
1,286
260
292
25
7
279
664
211
892.271 1.478.586
Payments
Amount
on 1948
Tax
o f exemp Tax l i a
withheld decla
b
i
l
i
t
y
2/
tio n 21/
ra tio n 22/
955,108
449
•
*
842. a 4
481,127
6
7
8
9
10
11
12
IS
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
S
I
52
SS
34
55
56
37
58
59
40
41
42
45
44
45
46
47
48
49
50
»
55
urxwu vuvu
Taxable returns with adjusted gross in—
oont under 65,000 and nontax&ble returns
iTaxable retams with adjustttd gross
V_of
2/18,480,587
26,4 59,622
888,7S7
556,512
742,482
157,678
991,9*76
*«7,axe
885,142
86,551
>6 - 0 0 0 ow »ora_______________________________
810,655
4,102,887 15,052,144
557,880 1,018,098
5,786,662 22, 672, 967
966,845
724,128
928,150 1,288,798
198,068
67,912
574,641
67
4,095,562 5,480,659 1,658,572
5,508,288
955,108
421,127
68
10,487,261
Taxable f id u c ia iy retu rn s f o r 1948, by t o t a l income c la s s e s : Nunber o f re tu r n s , income o r lo s s from each o f th e sources comprising t o t a l income,
t o t a l income, deductions, balance income, amount d is trib u ta b le to b e n e f ic ia r ie s , n et income, exemption, and ta x l i a b i l i t y
T o ta l
number Divi
I n te r e s t
dends 37/ 52/
of
retu rn s
T o ta l income c la s s e s 56/
Rents and
Trade or
r o y a ltie s 14/ business 39/
Net
p r o f it
Under -0 .5
0 *5 under 0*75
0 .7 5 under 1.
1 under 1 .2 5
1 .2 5 under 1 .5
1 .5 under 1 .7 5
1 *7 5 under 2
2 under 2 .2 5 .
2 .2 5 under 2 .5
2*5 under 2 .7 5
2 .7 5 under 3
3 under 3 .5
3 .5 under 4
4 under 4 .5
4 .5 under 5
5 under 6
6 under 7
7 under 8
8 under 9
9 under 10
10 under 11
11 under 12
12 under 13 IS under 14
14 under 15
15 under 20
20 under 25
25 under 50
30 under 40
40 under 50
50 under 60
60 under 70
70 under 80
80 under 90
90 under 100
100 under 150
150 under 200
2 0 0 under 250
250 under 300
300 under 400
400 under 500
500 under 750
750 under 1,000
1 ,0 0 0 under 1 ,5 0 0
1 ,5 0 0 under 2 ,000
2 ,0 0 0 under 3,000
3 ,0 0 0 under 4 ,000
4 ,0 0 0 under 5,000
5,000 or more
T o ta l
Taxable
Income
Taxable
income
retu rn s w ith t o t a l
under $5,000
returns w ith t o t a l
o f $5,000 or more
6 ,879
830
792
1 ,4 7 8
940
5 ,7 0 3
6,738
2 ,1 9 0
1 ,3 1 1
5,810
2 ,589
1 ,2 5 1
4 ,8 7 2
1 ,2 4 6
2 ,713
4 ,5 1 9
2 ,8 7 6
1 ,3 1 8
3,942
2 ,947
1 ,3 2 3
3 ,5 8 6
3 ,1 9 6
1 ,244
3 ,0 8 8
2 ,9 9 8
1 ,0 9 9
2 ,8 9 2
3,244
1 ,2 0 2
2 ,527
3 ,152
1 ,1 5 0
4 ,6 2 1
6,484
2 ,2 4 8
3 ,7 6 4
6,013
2,0 3 3
3 ,1 8 0
5 ,9 3 1
2 ,0 1 0
2 ,9 5 5
6,465
1,9 8 9
4 ,5 4 7
1 1 ,558
3,3 0 2
3,753
1 1 ,732
3,0 9 4
3 ,043
11 ,2 1 5
2 ,875
2 ,483
10 ,2 6 8
2 ,558
2 ,0 6 1
9,743
2 ,3 0 5
1 ,848
9,6 9 5
2 ,1 0 7
1 ,4 5 4
8 ,2 8 2
1 ,8 8 2
1 ,3 4 2
1 ,7 7 2
8 ,2 6 8
1 ,0 2 9
7,179
1 ,5 1 0
1 ,0 8 0
8 ,2 9 2
1 ,5 7 7
3 ,7 5 6
58,576
6,648
2 ,225
26,538
4,443
1 ,6 1 7
24,165
3 ,4 2 0
1 ,9 2 8
37,742
4 ,983
1 ,098
26,582
3 ,3 1 5
694
2 0 ,7 2 5
2 ,294
493
18,087
1 ,918
318
1 4 ,437
1 ,5 9 0
241
11,857
1 ,1 2 7
177
9 ,5 3 6
1 ,0 0 0
495
38,497
2 ,8 2 1
172
1 6 ,244
1 ,7 8 8
107
1 5 ,514
982
1 2 ,884
76
825
67
1 2 ,021
1 ,2 4 1
27
7,118
411
35
12,472
699
17
9 ,4 0 1
458
14
8 ,9 4 1
361
5
6 ,314
43
5
7 ,702
164
2
3 ,066
7
1
261
27
1 _________ 1 ________1
101,283
159
526
998
1 ,091
1 ,0 4 7
1 ,1 4 9
1 ,149
1 ,083
1 ,073
1 ,1 3 6
1 ,0 2 7
2 ,0 7 7
1 ,9 3 7
1 ,7 9 2
1 ,8 8 8
3,2 5 2
3 ,0 6 4
2 ,813
2 ,6 9 5
2 ,3 3 5
2 ,1 6 8
2 ,2 5 7
2 ,142
1 ,6 8 1
1 ,6 1 0
7,705
5,454
4 ,7 9 6
7,0 9 0
4 ,9 8 1
5 ,8 9 0
2 ,948
2 ,1 4 9
2 ,6 8 5
1 ,6 5 0
5,629
2 ,521
1 ,9 4 6
997
2 ,4 4 1
783
3 ,764
155
2,985
1
17
' -
10.878
Net Net
lo s s p r o fit
16
17
23
73
36
34
24
51
22
30
17
48
56
42
28
49
44
45
27
30
23
18
-22
21
32
99
69
SB
82
19
40
18
20
46
17
59
12
9
16
5
so
—
.—
75
—
-*
—
Net Net
Net
lo s s p r o fit lo s s
16
222
433
537
537
603
685
592
653
534
526
1 ,1 1 4
1 ,044
1 ,023
997
1 ,5 2 6
1 ,4 0 4
1 ,239
1 ,2 3 0
1 ,108
961
901
738
629
676
3 ,144
2 ,5 5 9
1,8 6 8
2 ,9 1 5
2,1 1 5
1 ,8 5 0
1 ,253
445
626
628
2 ,819
1 ,6 4 1
376
1 ,458
940
5
35
40
45
28
55
72
19
14
25
9
34
19
63
. 27
45
53
44
9
81
66
80
26
17
31
67
45
52
56
134
121
92
66
8
9
138
13
81
4
2
—
27
553
27
799
9
—
10
—
2
518,021
84,708
* 65,076
« 53,106
2 1 ,156
1 8 ,132
497
36 ,207
464,912
63,546
99,502
981 35,991
For fo o tn o te s, see pp. 16-17,
P a rtn ership 42/
-
15
m
9 ,5 1 6
468
Net
gain
61
4
114
107
7
325
213
29
555
265
8
657
236
17
671
312
4
758
285
9
787
294 -13
826
369
15
850
313
20
908
276
6
877
740
13
1 ,7 4 0
707
30
1 ,8 0 0
719
20
1 ,667
701
4
1 ,5 7 9
1 ,1 8 0
23
3 ,082
1 ,062
10
3 ,131
1 ,3 4 3
32
2,5 6 4
1 ,299
7
2 ,3 7 0
37
1 ,2 7 8
2 ,2 6 7
1 ,3 7 3
22
2 ,3 2 5
910
7
2 ,0 5 8
1 ,1 0 1
16
2 ,0 8 0
856
1
1 ,4 9 9
1 ,2 8 3
8
1 ,8 2 0
4 ,3 6 5
22
7,547
3 ,2 2 6
60
6,248
2 ,704
2
5,640
72
8 ,2 9 6
5 ,482
3 ,880
14
6,252
2 ,3 8 6
15
5 ,795
1 ,8 9 8
25
4 ,864
2
1 ,5 1 6
3,283
1 ,1 4 9 (3 5 )
2 ,7 9 6
702
25
2 ,9 2 0
2 ,9 6 7
34 10,354
1,148
2
5,563
487
1
3 ,874
310
4 ,1 6 8
— 5 ,541
373
415
1 ,9 5 4
544
2 ,3 8 0
84
2 ,8 5 1
1
m
m 4 ,458
1 ,7 2 8
— 3 ,5 7 6
3 ,459
5 ,975
29
27
11 7 ,6 3 5 1 ,4 7 7 45 ,5 0 6 1,886 4 8 ,948
5 ,598
4 3 ,350
1,4181
S a les OP
exchanges
o f property
o th er than
c a p it a l
a s s e ts 18/
Net
Net
Net
lo e s gain lo s s
S a les or
exchanges
o f a p it a l
as; t 8 41/
59
71
120
100
102
101
104
91
87
93
105
140
105
110
12a
169
163
148
113
90
97
69
72
73
58
251
167
125
190
76
58
39
35
26
15
51
19
13
7
4
2
5
5
1
1
1
-
3
1
25
6
30
6
28
6
33
10
54
8
40
8
28
7
35
2
34
4
26
20
82
16
62
19
38
16
16
53
87
19
77
IS
50
8
52
25
58
13
17
14
42
18
40
24
67
5
40
3
90
41
135
28
89
25
78
5
122
20
27
31
32
1
3
52
25
12
1
2
50
51
' 78
6 (55)
13
(35)
1
—
m
m
•s
_
mm
mm
•
-
1
m
m
—
,
-
652 144,585 3 ,658 1 ,7 4 1
587
199
551
145
434 130,471 2 ,1 4 1 1 ,1 9 0
443
1 4 ,114 1 ,5 1 7
Income
liis c e lT o ta l
from
in
fid u c ia laneous
incorna 43/ come 44/
r i e s 42/
In te r e s t
Taxes 46/
45/
M isce llaneous
Amount
Net i n di s t i l b T o ta l Balance u tab le
tax ab le
deduc income to
to
tio n s w
tio n a 47/
40
78 •
116
86
111
102
125
175
no
124
140
203
279
179
152
379
212
256
230
228
312
270
277
219
124
842
613
454
1 ,201
820
555
589
121
124
121
1 ,4 3 5
750
546
59
318
1 ,1 2 1
611
25
m
.
•
•
m
-
1 4 ,609
41
112
231
243
271
341
269
329
277
273
243
503
462
366
380
781
768
677
557
461
600
286
493
554
351
1 ,3 1 4
992
1 ,2 0 7
1 ,1 5 7
1 ,118
604
594
420
238
345
451
149
286
85
102
26
4
524
24
•
10
-«
-
\
1 ,9 7 3
3 ,677
5,859
6,513
6,672
7,314
7,394
7 ,608
7 ,3 2 5
7 ,5 9 6
7,259
1 4 ,940
1 4 ,107
1 3 ,476
1 4 ,005
24,843
2 4 ,2 8 0
22,753
21,079
1 9 ,530
19*335
1 6 ,696
16 ,7 5 2
1 3 ,878
1 5 ,640
64,751
4 9 ,616
44,079
66,374
48 ,9 2 0
5 7 ,870
3 1 ,807
23,808
2 0 ,554
16,854
59,690
2 9 ,637
2 5 ,913
2 0 ,769
22,955
U , 776
2 0 ,7 1 6
14,279
16,778
8 ,011
U , 454
6,532
4 ,2 6 1
1 0 .959
S
n
21
30
41
51
50
56
52
57
56
137
120
100
ne
222
220
206
126
144
199
125
15S
126
U3
540
514
482
715 ,
554
545
210
146
489
147
994
555
309
407
348
24
335
248
59
5
125
31
•
29
48
124
183
197
206
210
223
212
206
194
4U
379
328
357
609
632
553
485
407
476
382
387
355
529
1 ,4 3 5
1 ,1 0 5
1 ,0 4 9
1,552
950
697
591
449
455
439
1 ,847
717
508
551
441
519
¿95
195
109
394
155
59
10.888
79,425 907,881
377,021
5 ,509
6,055
10,264 U S , 452
25,064
90,570
18,182
41,475
68,157 791,926
551,957
439,990
10,405
21,492
2,020
4 ,5 4 1
126,716
903
1 2 ,5 9 0
1 4 ,9 5 6
861,087
9,5 00
1 ,8 2 0
3,487
5,525
6,047
6,135
6,712
6,771
6*954
6,689
6*952
6,659
is )6 3 8
12,918
12)352
12,795
22)766
22,229
20*9n
19,505
17,973
17,750
15,322
15,322
12,783
14,570
59,534
45,748
40,342
60,934
44,805
34*609
29*314
21,886
18)461
15,186
54*160
26*762
47,550
1
986,806
U9
153
190
152
334
189
466
255
537
299
602
345
562
622
654
375
636
573
382
644
350
600
754
1,302
691
1 ,190
696
1 ,124
757 , 1,210
1,246
2 ,077
2 '0 5 1
1 ,198
1 ,082
1 ,841
964
1 ,5 7 4
1 ,006
1 ,557
910
l)5 8 5
867
1,373
885
1 ,4 5 0
616
1 ,0 9 5
627
1,069
3,242
5,217
2 ,249
5,868
s )756
2 ,2 0 5
5*440
5,193
2 ' 631
4 ,n 5
2) 019
3 ,2 6 1
1,693
2* 493
1,528
1,923
ljlS l
2*073
1,061
1,647
3,189
5)550
1 ,6 0 2
2 ,875
1*070
1 ,8 8 8
852
1 ,6 1 0
1,255
2 ,0 4 5
524
668
1,164
1 ,794
257
*678
527
695
551
929
383
663
167
257
(3 5 )
(55)
ry 12/
78
276
443
643
836
1 ,088
1 ,1 6 7
1 ,358
1,329
1,565
1,598
3)641
3, 551
3 ,646
3*867
7,330
7,651
7) 176
6,741
6*470
6,201
5)724
5,691
5,170
5,422
24,523
18,807
16*504
26,785
18)8 7 6
15)306
13*754
11,558
9)462
7*458
25,513
14)688
n i 713
. n Ì4 5 9
1 2 )lS 0
6,552
1 4 )l9 7
6)279
9," 502
5, 585
6)697
2,'655
288
50
79
19 ,3 0 0
c ia r le s
21
102
22,025
19*159
20,910
n ,1 0 8
18*923
13*601
16,063
7) 082
10,790
6*274
4 ,2 6 1
Tax
of
lia b n excep
tio n HQ/ i t y ¿1/
1,742
3,212
5,083
5,404
5,298
5,624
5 ,605
5 ,596
5 ,360
5) 389
5,061
9*, 997
9)367
8,706
8)926
15,436
14,577
13)755
12,764
n )so 3
n l5 4 8
9,598
9,631
7)618
9) 149
35, o n
26)941
23)838
3 4 )1 «
25)929
19)504
15)560
10^527
9^000
7)729
28)647
12)074
10)312
7)701
8)760
4^ 556
4)725
7^522
6) 582
5)497
4) 092
3)619
5,978
10.7 8 8
530,360
688
1,771
2 ,639
2)265
1,659
1 ,665
1,442
l) 2 6 7
1 ,0 8 4
*970
857
1 ,4 7 8
l)l9 7
983
910
1 ,3 4 7
l)0 5 4
*847
698
566
513
599
356
274
284
977
SB5
409
461
269
171
U5
*78
65
46
119
40
25
18
IS
6
6
4
175
241
407
521
570
656
689
715
7U
739
713
1 ,454
1)416
1^555
1)435
2)880
2)564
2)524
2)460
2*286
2)379
2 ,055
2 ) l2 1
l) 7 2 6
2 )l7 0
, 8)859
7)786
7)571
11*988
10^098
8*065
6*857
4^725
4*260
5* 768
14*805
6*497
5^965
4)261
4)91£
2*817
~ 2,7 7 1
A,794
2
3,"880
1
2)524
1
Z\149
(55)
l) 8 5 7
(5 5 )
l)9 8 7
8r 575
50,799 176,509
21,0 5 5
n ,7 9 6
9 ,746 164,514
CO
r\j
-
16
-
26/
Footnotes
■yj Adjusted gross income classes are based on the amount
of adjusted gross income (see note 2 ), regardless of the
amount of net income or net deficit when computed; returns
with adjusted gross deficit are designated "No adjusted gross
income" and the size of the deficit is disregarded.
2/ Adjusted gross income means gross income minima allowa
ble trade and business deductions, expenses of travel and
lodging in connection with employment, reimbursed expenses in
connection with employment, deductions attributable to rents
and royalties, certain deductions of life tenants and income
beneficiaries of property held in trust, and allowable losses
from sales or exchanges of property. Should these allowable
deductions exceed the gross income, there is an 'adjusted gross
deficit.
3/ Tax liability after deducting tax credits relating
to income tax paid at source on tax-free covenant bond inter*
est and to income tax paid to a foreign country or possession
of the United States. Such credits are reported on individ
ual returns, Form 1040, with itemized deductions.
4/ This class includes the nontaxable returns with $4,500
or more adjusted gross income.
5/ Returns with no adjusted gross income are returns
showing adjusted gross deficit (see note 2 ); that is, returns
on which the deductions allowable for the computation of
adjusted gross income equal or exceed the gross income.
6 / Less than 0.005 percent.
7/ Not computed.
8 / Adjusted gross deficit.
2/ Adjusted gross income less adjusted gross deficit.
10 / Salaries and wages include annuities, pensions, and
retirement pay reported in the schedule for salaries, but
exclude wages not exceeding $100 per return from which no
tax was withheld, reported as other income on Form 1040A
(see note 2 0 ).
11 / Dividends, foreign and domestic, include partially
tax-exempt dividends on share accounts in Federal savings and
loan associations, but exclude dividends not exceeding $100
per return reported as other income on Form 1040A (see note
2 0 ) and all dividends received through partnerships and
fiduciaries.
12/ Interest received includes interest on notes, mort
gages, Vmwir deposits, corporation bonds before amortization
of bond premium, and taxable and partially tax-exempt in
terest on Government obligations before amortization of bond
premium; also, includes, when received through partnerships
and fiduciaries, partially tax-exempt interest on Government
obligations and partially tax-exempt dividends on share
accounts in Federal savings and loan associations. Excludes
interest, not exceeding $100 per return reported as other
income on Form 1040A (see note 20).
15 / income from annuities and pensions is only the taxa
ble portion of amounts received during the year. Amounts
received to the extent of 5 percent of the total cost of the
annuity are reported as income for each taxable year, until
the aggregate of amounts received and excluded from gross
income in this and prior years equals the total cost. There
after, entire amounts received are taxable and must be in
cluded in adjusted gross income. Annuities, pensions, and
retirement pay upon which tax is withheld may be reported in
salaries and wages.
14 / Net profit from rents and royalties is the excess of
gross rents received over deductions for depreciation, repairs,
interest, taxes, and other expenses attributable to rent in
come; and the excess of gross royalties over depletion and
other royalty expenses. Conversely, net loss from these
sources is the excess of the respective expenses over gross
income received.
15 / Net profit from business is the excess of gross re
ceipts from business over deductions for business expenses
and the net operating loss deduction due to the unabsorbed
net operating loss from business, partnership, and common
trust funds for the 2 preceding years. Conversely, net loss
from business is the excess of business expenses and net
operating loss deduction over total receipts from business.
tions,
«elude
for reh
exempt
5
contrac
16/ Partnership net profit or loss excludes partially
tjY—exempt interest on Government obligations, partially taxexempt dividends on share accounts in Federal savings and
loan associations, and net gain or loss from sales of capital
assets. In computing partnership profit or loss, charitable
contributions are not deductible nor is the net operating
loss deduction allowed.
17 / Net
or loss from sales or exchanges of capital
assets is the net gain or the allowable loss used in computing
adjusted gross income. Each is the result of confining net
short- and long-term capital gain and loss and any capital
loss carry-over from the years 1943-47, inclusive, not previ
ously deducted. Deduction for the loss, however, is limited
to the amount of such loss, or to the net income (adjusted
gross income if taxed under supplement T) computed without re
gard to gains and losses from sales*of capital assets, or to
$1,000, whichever is smellest*
Sales of capital assets include worthless stocks, worth*
less bonds if they are capital assets, .nonbusiness bad debts,
certain distributions from employees* trust plans, and each
participant's share of net short- and long-term capital gain
and loss to be taken into account from partnerships and cotnon
trust funds.
18/ Net gain or loss from sales or exchanges of property f
other than capital assets is that from the sales of (1) prop
erty used in trade or business of a character which is subject
to the allowance for depreciation, (2) obligations of the
United States or any of its possessions, a State or Territory
or any political subdivision thereof, or the District of
Columbia, issued on or after March 1, 1941, on a discount
basis and payable without interest at a fixed maturity date
not exceeding 1 year from date of issue, and (5) real property
used in trade or business.
19 / income from estates and trusts excludes partially taxexempt interest on Government obligations and partially taxexempt dividends on share accounts in Federal savings and lom
associations. (Ihe net operating loss deduction is allowed to
estates and trusts and is deducted in computing the distribute
income.)
22/
tions,
certain
levied
propert
taxes;
taxes;
corpora
deducte
taxes p
States
Federal
the emp
w
other c;
deduct!
is, the
insuran
29/
-itemize!
spouse,
wise, wl
The de<h
of exenj
IMTlimim
husband
30/
itemize«
curred i
in the i
taxable
of intei
■eut coi
gains «
31/
tions, i
deductic
-
20/ Miscellaneous income includes alimony received, priaeo,
rewards, sweepstakes winnings, gambling profits, recoveries of
bad debts or insurance received as reimbursement for medical
expenses if deduction for either was taken iaa prior year, For
returns with standard deduction, there is included $4 0 ,448,000
of wages not subject to withholding, dividends, and interest, j
not exceeding in total $100 per return, reported as other iM«U
on 896,400 returns, Form 1040A.
21/ Amount of exemption, allowed for purposes of both nor
nil tawr and surtax, includes the per capita exemption of the
taxpayer, his spouse, and each dependent, together with addi
tional exemptions of $600 for blindness and $600 for age over
65, of the taxpayer and his spouse.
22/ Payments on 1948 declaration of estimated tax include
the credit for overpayment of prior year tax as well as the
aggregate payments made on the declaration, Form 1040 -ES.
23/ Returns with standard deduction are optional returMi
Form 1040A, and short-form returns, Form 1040, with adjusted
gross income less than $5,000, on both of which the tax is
determined from the tax table; and long-form returns, For® m
with adjusted gross income of $5,000 or more on which the
standard deduction is used. On the latter returns, the stew
ard deduction is the smaller of $1,000 or 10 percent of adjW
gross income, except that on the return of a married person
filing a separate return the standard deduction is $500.
32/
consiste
the net
nation c
from the
income.
326,509
gross ii
larger i
33/
income a
reduced
results i
with adj
41,470 r
t 0/
to sampl
are not
liable f
For desc
8/
16/
income t
52/
tez-exem
•edloan
P^ners
24 / Returns with itemized deductions are long-form retuW
Form 1040, on which nonbusiness deductions are itemized; l®*’.,
form returns, Form 1040, with no deductions filed by sP0U*eL 1
58/
taxpayers who itemized deductions (such spouses are denied
ration b
standard deduction); and returns, Form 1040, with no ad jus
Oovernae
cross income whether or not deductions are itemized.
share
25/ Contributions, reported on returns with itemized deP Also ine
exempt d
tions, include each partner's share-of charitable contrit»«
011
of partnerships, but cannot exceed 15 peroent of the adjus
gross income.
®d fidü
33
- 17 Footnotes - Continued
26/ I n t e r e s t , r e p o r t e d o n r e t u r n s
with itemized deduc
tions, is t h a t p a i d o n d e b t s , b a n k l o a n s , o r m o r t g a g e s , b u t
excludes I n t e r e s t p a i d o n b u s i n e s s d e b t s r e p o r t e d i n s c h e d u l e s
for rents a h d b u s i n e s s , a n d i n t e r e s t o n l o a n s t o b u y t a x -
loss
t
ess.
illy
y tax-
exempt s e c u r i t i e s ,
i contracts.
f 22/ T a x e s
sin g l e - p r e m i u m li f e insurance,
or endowment
pai d , r e p o r t e d o n r e t u r n s w i t h i t e m i z e d d e d u c
tions, i n c l u d e p e r s o n a l p r o p e r t y ta x e s , S t a t e i i n c o m e ta x e s ,
nd
certain r e t a i l s a l e s t a x e d ,
apital
and real ¿state taxes
except those
levied fo r i m p r o v e m e n t s w h i c h t e n d t o i n c r e a s e t h e v a l u e o f
property, t h i s d e d u c t i o n d o e s n o t i n c l u d e F e d e r a l i n c o m e
.table
■ng
taxes; estate,
inheritance,
taxes; taxes o n s h a r e s
legacy,
corporation w i t h o u t r e i m b u r s e m e n t
ipltal
deducted i n t h e s c h e d u l e s
imputing
succession,
o r gift
in a c o r poration w h i c h are p a i d by the
fr o m the
for rents
taxpayer;
and business;
taxes
income
Ltal
previLadted
■ted
28/ L o s s e s r e s u l t i n g f r o m fire,
bbut TO
s torm,
shipwreck,
worthdebts,
each
4 1 / N et g a i n or loss fr o m sales o r exchanges o f capital
a s s e t s is t h e n e t g a i n o r the a l l o w a b l e l o s s u s e d ' i n c o m p u t i n g
the n e t income taxable to the fiduciary.
spouse, or d e p e n d e n t s , n o t c o m p e n s a t e d b y i n s u r a n c e o r o t h e r
wise, which e x c e e d 5 p e r c e n t o f t h e a d j u s t e d g r o s s i n c o m e .
The deduction c a n n o t e x c e e d $ 1 , 2 5 0 m u l t i p l i e d b y t h e n u m b e r
of exemptions o t h e r t h a n t h o s e f o r a g e end b l i n d n e s s w i t h a
maximum d e d u c t i o n o f $ 2 , 5 0 0 , e x c e p t o n a j o i n t r e t u r n o f
husband and wife, t h e " » x i m u m fa $ 5 , 0 0 0 . -
) propsubject
th e
rritory
30/ M i s c e l l a n e o u s d e d u c t i o n s , r e p o r t e d on r e t u r n s w i t h
itemized d e d u c t i o n s , i n c l u d e a l i m o n y p a y m e n t s , e x p e n s e s in
curred in the p r o d u c t i o n o r c o l l e c t i o n o f t a x a b l e i n c o m e o r
of
iunt
• date
property
in the manag e m e n t o f p r o p e r t y h e l d f o r t h e p r o d u c t i o n o f
taxable income, a m o r t i z a b l e b o n d p r e m i u m ,
E a c h is t h e r e s u l t o f
a n y capi t a l loss c a rry-over fr o m the years 1943-47, inclusive,
not previously deducted.
D e d u c t i o n f o r t h e los s , h o w e v e r , is
l i m i t e d t o t h e a m o u n t o f s u c h loss, o r t o t h e n e t i n c o m e c o m p u t e d
w i t h o u t regard to gains a n d losses from sales of capital assets,
o r t o $ 1 , 0 0 0 , w h i c h e v e r is s m a l l e s t .
Sales
bonds
of c apital assets
share
sto c k ,
worthless
nonbu s i n e s s b a d debts,
42/ Income
from partnerships and
certain
from fiduciaries
common trust
fu n d s .
excludes taxable and partially
t a x - e x e m p t i n t e r e s t on G o v e r n m e n t o b l i g a t i o n s , a n d p a r t i a l l y
t a x - e x e m p t d i v i d e n d s cn s h a r e a c c o u n t s i n F e d e r a l s a v i n g s a n d
loan associations.
4 3 / M i scellaneous income includes taxable income
o t h e r t h a n t h o s e s p e c i f i e d o n t h e r e t u r n form.
from sources
4A/ T o t a l i n c o m e is t h e a m o u n t r e s u l t i n g f r o m t h e c o m b i n a t i o n
o f p r o f i t or los s f r o m rents an d royalties, f r o m trade or business,
fro m partnerships, f r o m sales or exchanges o f property, toget h e r
w i t h income fro m dividends,
the taxpayer's
of interest and r e a l e s t a t e t a x e s p a i d b y a c o o p e r a t i v e a p a r t
include worthless
i f t h e y are capital assets,
dist r i b u t i o n s f r o m e mployee's t r u s t plans, a nd each part i c i p a n t ' s
share o f n e t sho r t - a n d l o n g - t e r m capital g a i n and loss t o be
taken into account
ropertjr
interest,
estates,
and from miscella
neo u s income.
(To t a l income is an a p p r o ximation o f the adju s t e d
gross income tabul a t e d for i n d ividual returns.)
ment coiporation, a n d g a m b l i n g l o s s e s h o t e x c e e d i n g g a m b l i n g
gains reported i n i n c o m e .
a l l y tai.y tax-
4 5 / I n t e r e s t is t h a t p a i d o n d e b t s , m o r t g a g e s , a n d b a n k l o a n s ;
it does n o t include interest reported i n schedule for business or
a n d loss
lowed to
.atributóte
31/ Net income, r e p o r t e d o n r e t u r n s w i t h i t e m i z e d d e d u c
tions, is the e x c e s s o f a d j u s t e d g r o s s i n c o m e o v e r i t e m i z e d
deductions.
id, prizes
32/ Net d e f i c i t r e p o r t e d o n n o n t a x a b l e r e t u r n s , F o r m 104 0 ,
consists o f a d j u s t e d g r o s s d e f i c i t o n s h o r t - f o r m r e t u r n s a n d
reri.es of
sedioal
the net deficit o n l o n g - f o r m r e t u r n s r e s u l t i n g f r o m t h e c o m b i -
it.
For
D, 448,0001
j
ther inedj
nrtion of a d j u s t e d g r o s s d e f i c i t a n d i t e m i z e d d e d u c t i o n s
or
» c m the excess o f i t e m i z e d d e d u c t i o n s o v e r a d j u s t e d g r o s s
inccne.
There is a n e t d e f i c i t o n 5 6 7 , 7 7 9 r e t u r n s
of w h i c h
f » 60? show n <» a d j u s t e d g r o s s i n c o m e a n d 4 1 , 4 7 0 s h o w a d j u s t e d
»•oss income o f v a r i o u s a m o u n t s a n d i t e m i z e d d e d u c t i o n s o f
larger amounts.
both nor
of the
th addi*
age over
includt
r e n t income, n o r i n t e r e s t o n i n d e b t e d n e s s i n c u r r e d t o b u y ta x exempt securities, sin g l e — p r e m i u m lif e insurance, or e n d o w m e n t
contracts.
4 6 / T a x e s p a i d i n c l u d e S t a t e i n c o m e ta x e s ,
sales
t axes,
and rea l estate taxes except those
provements w h i c h tend to incr e a s e the v a l u e
d e d u c t i o n does n o t include
ance,
legacy,
succession,
certain retail
levied for im- .
of property,
F e d e r a l income, tax,
estate*
fhifc
inherit
o r g i f t taxes', n o r t a x e s i m p o s e d U p o n
shares in a c o r p o r a t i o n w h i c h a r e paid b y the^ c o r p o r a t i o n w i t h o u t
reimbursement fro m the taxpayer; taxes d e d u c t e d in the Schedules
f o r b u siness a n d re n t income, n o r i n come taxes- p a i d t o a foreign
country or possession of the United States if any portion thereof
is c l a i m e d a s a t a x c r e d i t .
v
33/ N o ntaxable r e t u r n s a r e t h o s e w i t h n o a d j u s t e d g r o s s
jacome and r e t u r n s w i t h a d j u s t e d g r o s s i n c o m e w h i c h , w h e n
„
?
dedu c t i o n s ,
rith
k
tal assets.
I n c o m p u t i n g p a r t n e r s h i p p r o f i t o r loss, c h a r i t a
b l e c o n t r i b u t i o n s a r e n o t d e d u c t i b l e n o r is t h e n e t o p e r a t i n g
loss ded u c t i o n allowed.
29/ M e d i c a l a n d d e n t a l e x p e n s e s , r e p o r t e d o n r e t u r n s w i t h
itemized d e d u c t i o n s , p a i d f o r t h e c a r e o f t h e t a x p a y e r , h i s
1 gain
d conos
iterest,
t ially tax-exempt dividends on share accounts in Federal savings
a n d loan associations, a n d ne t g a i n or loss f r o m sales of-capi
or
other casualty, o r th e f t , r e p o r t e d o n r e t u r n s w i t h i t e m i z e d
deductions, a r e th e a c t u a l n o n b u s i n e s s l o s s e s s u s t a i n e d , t h a t
is, the v a l u e o f s u c h p r o p e r t y l e s s s a l v a g e v a l u e a n d
insurance or o t h e r r e i m b u r s e m e n t r e c e i v e d .
O T to
40/* P a r t n e r s h i p n e t p r o f i t o r l o s s e x c l u d e s t a x a b l e a n d
p a r t i a l l y tax-exempt interest o n G o vernment obligations, pa r
c o m bining net short- an d l o n g -term capital gain and loss a n d
taxes paid t o a f o r e i g n c o u n t r y o r p o s s e s s i o n o f t h e U n i t e d
States i f a n y p o r t i o n t h e r e o f is c l a i m e d a s t a x c r e d i t ; n o r
Federal s o c i a l s e c u r i t y a n d e m p l o y m e n t t a x e s p a i d b y o r f o r
the employee.
; net
3 9 / T r a d e o r b u s i n e s s p r o f i t o r l o s s is t h e c u r r e n t y e a r
prof i t o r loss, (Net o p erating lo s s d e duction is reported in
miscellaneous deductions.)
stand a r d o r itemized,
l i a b i l i t y*
a n d exemptions,
The 1,204,775 nontaxable returns
Iica
Sted g r o s s i n c o m e a n d w i t h
■ »*'0 returns w i t h n e t d e f i c i t .
itemized deductions
include
1 2 / M i s c e l l a n e o u s d e d uctions include th e n et operating loss
d e d u c t i o n , l o s s e s r e s u l t i n g f r o m fire, storm, s h i p w r e c k , o r o t h e r
c a s u a l t y or fro m theft,
not
c o m p e n s a t e d b y ins u r a n c e or otherwise,
a n d other a u t horized deductions
is m a d e o n t h e r e t u r n form.
for whi c h no separate provision
as the
J i / Number of r e t u r n s a s s o c i a t e d w i t h t h i s i t e m i s s u b j e c t
-ES.
returns,
d jus ted
are T t T 8 V a r i a t i o n o£ mon t h a n 1 0 0 p e r c e n t .
Such items
liable »8 h o m S8P a r a t e l y s i n c e t h e y a r e c o n s i d e r e d t o o u n r e ftn. a
general use; however, t h e y a r e i n c l u d e d i n totals.
r “ » » i p t i o n o f s a m p l e s e e p a g e 6.
$§/ Less t h a n $50 0 .
the
h e stando f adjust*
person
00
.
,rm retnf*
Income^Jwi?1 i n o o m e c l a s s e s a r e b a s e d o n t h e a m o u n t o f t o t a l
wouiated for taxable fiduciary returns (see note 44).
w E , ^ f ends> f ?r e i g b » i d domestic, e x c l u d e p a r t i a l l y
div i d e n d s o n s h a r e a c c o u n t s i n F e d e r a l s a v i n g s
and loan
Partnw.«MS S 0 C iations a n d a 1 1 d i v i d e n d s r e c e i v e d t h r o u g h
ed; lo* . ^ n e r s h i p s a n d f i d u c i a r i e s .
spouses M
lenied thoJ
ration
°? bank deposits, notes, mortgages, corpoadjusted
CoverrBent J U j 'Sv * a n d p a r t i a l l y t a x - e x e m p t i n t e r e s t o n
011 share
ot>li8 a t i °ns, “ d p a r t i a l l y t a x - e x e m p t d i v i d e n d s
sized ded*
itributi®*
adjusted
o f t o tal income
over total
4 9 / N e t i n c o m e t a x a b l e t o t h e f i d u c i a r y is t h e n e t i n c o m e
a x is
Fobs 10H
4 8 / Balance income is the excess
d e d u c t i o n s ; t h a t is, i n c o m e b e f o r e t h e a m o u n t d i s t r i b u t a b l e to
b e n e f i c i a r i e s is d e d u c t e d .
after subtracting from the balance income the amount distributable
to beneficiaries.
5 0 / E x e m p t i o n is $ 6 0 0 f o r e a c h e s t a t e a n d $ 1 0 0 f o r e a c h tr u s t ,
in the fonn of a credit against net income for purposes of both
the n ormal tax an d surtax. .
51/
Tax l i a b ility a f t e r ta x credits relating to income ta x
p a i d a t source o n interest fro m tax-free coven a n t bonds a n d in
come tax pai d to foreign countries or possessions o f the
U n ited States.
*l»o incl«,OOUnt8 i n F e d e r a l s a v i n g s a n d l o a n a s s o c i a t i o n s ,
exempt ¿uST ^ ° h G o v e r n m e n t i n t e r e s t a n d p a r t i a l l y t a x and fiduciaries
°n 8 h a r e a c c o u n t s r e c e i v e d t h r o u g h p a r t n e r s h i p s
Treasury -
Internal Revenue, Washington,
D.
C
-7
Us
FOR IMMEDIATE RELEASE,
November 7« 1950____
Country
of
Origin
i......
The Bureau of Customs announced today preliminary figures showing the
quantities of wheat and wheat flour entered, or withdrawn from warehouse, for
consumption under the import quotas established in the President’s proclamation
of May 28, 19l|l, as modified by the President’s proclamation of April 13, 19112,
for the 12 months commencing May 29, 1950, as follows:
s
:
#
0
Wheat
Established : Imports
Quota
iMay 29, 1950, to
JOct. 28, 1950
(Bushels;
(Bushels;
Canada
China
Hungary
Hong Kong
Japan
United Kingdom
Australia
Germany
Syria
New Zealand
Chile
Netherlands
Argentina
Italy
Cuba
France
Greece
Mexico
Panama
Uruguay
Poland and Danzig
Sweden
Yugoslavia
Norway
Canary Islands
Rumania
Guatemala
Brazil
Union of Soviet
Socialist Republics
Belgium
795,000
-
795,000
—
—
-
—
—
100
100
*100
-
■ 100
2,000
100
-
1,000
-
100
•
•
3,815,000
2k,000
3,815,000
9,285
8,000
a»
13,000
13,000
75 ,ooo
1,000
mm
mm
mm
mm
mm
—
M
mm
mm
mm
-
—
-
-
-
-
-
—
-
-
-
—
*
—
1,000
100
100
Wheat flour, semolina,
crushed or cracked
wheat, and similar
wheat products
Established : Imports
Quota t May 29, 1950,
to Oct. 28, 1<
(Pounds)
(Pounds)
5,000
—
5,ooo
1,000
1,000
1,000
114,000
2,000
12,000
1,000
1,000
1*000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
mm
2,295
30U
mm
mm
mm
a*
ip
m
mm
m .
—
—
-
mm
mm
-
mm
—
-
■ mm
.
100
100
"BUD",TOT
\
—
795,000
—
“ 5,TO5700D
mm
t
-
’
3,826,88U
TREASURY DEPARTMENT
Washington
for i m m e d i a t e r e l e a s e ,
Wednesday« November 8, 1950
35
S~2498
The Bureau of Customs announced today preliminary figures showing the
quantities of -wheat and wheat flour entered, or withdrawn from warehouse, for
consumption under the import quotas established in the Presidents proclamation
of May 28, 1941, as modified by the President’s proclamation of April 13, 1942,
for the 12 months commencing May 29, 1950, as follows:
Country
of
Origin
Wheat
Imports
Established :
Quota
: May 29, 1950, to
; Qcto 28* 1950
(Bushels)
(Bushels)
Canada
795,000
—
China
«Mt
Hungary
Hong Kong
—
Japan
United Kingdom
100
.—
Australia
100
Germany
100
Syria
—
New Zealand
Chile
100
Netherlands
2,000
Argentina
100
Italy
Cuba
1,000
France
Greece
Mexico
100
—
Panama
—
Uruguay
Poland and Danzig
••
Sweden
—
Yugoslavia
—
Norway
Canary Islands
1,000
Rumania
100
Guatemala
Brazil
100
Union of Soviet
Socialist Republics
100
100
Belgium
800,000
795,000
**
-
m
—
**
—
~
—
—
«■#
-
Wheat flour, semolina,
crushed or cracked
wheat, and similar
wheat products
Established :
Imports
Quota
¡May 29, 1950
?to Oct* 28, 1950
(Pounds)
(Pounds)
3,815,000
24,000
13,000
13,000
8,000
75,000
1,000
5,000
5,000
1,000
1,000
1,000
14,000
2,000
12,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
—
3,815,000
9,285
mm
—
mm
pm
—
'mm
mm
mm
2,295
304
«*
mm
mm
*m
mm
mm
mm
mm
mm
mm
«*
—
mm
Km
—
mm
mm
_
**
-
4,000,000
3,826,884
«
795,000
j
IMMEDIATE RELEASE
_
ä
W **
November-p7% 19£0
u
The Bureau of Customs announced today preliminary figures showing
the imports for consumption of commodities within quota limitations
provided for under the General Agreement on Tariffs and Trade, from the
beginning of the quota periods to October 28, 19£0, inclusive, as
follows:
Commodity
Period and Quantity
Imports as c
of October 28,
Quantity
1950
Unit
Whole milk, fresh or
sour........... Calendar year
3,000,000
Gallon
11,737
Cream, fresh or sour ... Calendar year
1,£00,000
Gallon
l,llU
Butter ............. July 16, 1950Oct. 31, 19£0
£,000,000* Pound
Fish, fresh or frozen,
filleted, etc., cod,
haddock, hake, pollock,
cusk, and rosefish ... Calendar year
26,235,738
Pound Quota filled
White or Irish Potatoes:
certified seed .... 12-months from l£0,000,000 Pound
Sept. l£, 19£0 60,000,000 Pound
other ..........
Walnuts ...... ....
Calendar year
7,932
236,395
12,826,8U£
£,000,000 Pound Quota filled
37
TREASURY DEPARTMENT
Washingt on
IMMEDIATE RELEASE
Wednesday? November 8, 195Q
S—2499
The Bureau of Customs announced today preliminary figures showing
the imports for consumption of commodities within quota limitations
provided for under the General Agreement on Tariffs and Trade, from- the
beginning of the quota periods to October 28, 1950, inclusive, as
follows:
Commodity
Period and Quantity
Unit
Imports as of
of
October 28,
Quantity
1950
1/Uhole milk, fresh or
Calendar year
3,000,000
Gallon
11,737
Cream, fresh or sour
Calendar year
1,500,000
Gallon
1,114
But ter
July 16, 1950Oct* 31, 1950
5,000,000
Pound
7,932
26,235,738
Pound
Quota filled
12 months from 150,000,000
Sept* 1$, 1950 60,000,000
Pound
Pound
236,395
12,826,845
Calendar year
Pound
Quota filled
SO u r
Fish, fresh or frozen,
filleted, etc«, cod,
haddock, hake, pollock,
cusk, and rosefish « « ♦
Calendar year
lVhite or Irish Potatoes;
certified seed „ a***«*
O th e r
Walnuts
a t • o
a o • « ©.» » 0 ff c
5,000,000
j
Ûj j J
'”" 7
VÙn
fs.=0^i>S33gef!S^i^miS^^^
y
ßv
% s m ^ M m m
à
IMMEDIATE RELEASE
November^ 1950
The Bureau of Customs announced today preliminary figures show
ing the imports for consumption of commodities on which quotas were
prescribed by the Philippine Trade Act of 1946, from January 1, 1950,
to October 28, 1950, inclusive, as follows?
Products of the
Philippines
: Established Quota
Quantity
Buttons ...........
8^0,000
Cigars .......... ..
i
:
Unit of
Quantity
:
:
Imports as of
October 28, 195-0
Gross
581,U55
200,000,000
Number
603,281
Coconut O i l .... ...
14*8,000,000
Pound
Cordage .......... .
6,000,000
tt
2,633,2 Ul
Rice ...............
i,o4o,ooo
It;
217
160,132,448
(refined ....
1,904,000,000
Sugars
Pound
886,361,120
(unrefined ..
T o b a c c o .... .
6,500,000
Pound
399,2U0
39
TREASURY DEPARTS! SUT
Washington
M E D I A T E RELEASE
Wednesday, November 8, 1950
S—2500
The Bureau of Customs announced today preliminary figures show
ing the imports for consumption of commodities on which quotas were
prescribed by the Philippine Trade Act of 1946* from January 1, 1950,
to October 28, 1950, inclusive, as follows:
Products of the
Philippines
’#
•
;
:
Established Quota
Quantity
•
:
:
Unit of
Quantity
850,000
Imports as of
October 28, 1950
Gross
581,455
603,281
Cigars
200,000,000
Number
Coconut Oil
448,000,000
Pound
Cordage
•
:
:
6,000,000
I!
1,040,000
It
160,132,448
2,633,241
(refined
1,904,000,¿00
Sugars
(unrefined ««,, •
Tobacco
Pound
M09OQMIIM t #«f
6,500,000
886,361,120
Pound
399}240
- 2 -
COTTON WASTES
(In pounds)
COTTON CARD STRIPS made from cotton having a staple of less than 1-3/16 inches in length, COMBER
WASTE, LAP WASTE, SLIVER WASTE, AND ROVING WASTE, WHETHER OR NOT MANUFACTURED OR OTHERWISE
ADVANCED IN VALUE: Provided, however, that not more than 33-1/3 percent of the quotas shall
be filled by cotton wastes other than comber wastes'made from cottons of 1-3/16 inches or more
in staple length in the case of the following countries: United Kingdom* France, Netherlands,
Switzerland, Belgium, Germany, and Italy:
Imports
1/
: Established :
Established : Total imports
:
S
e
p
t
'
2
0
,
1950
Country of Origin : TOTAL QUOTA : Sept. 20, 19i>0, to s 33-1/3* of
•
: net. 28. 1950
Î Total Quota : to Oct, 28, 1950
897,371
1,441,152
United Kingdom .....
897,371
4,323,457
239,
6
9
0
Canada ...........
219,659
63,125
227,420
France ..........
75,807
63,125
—
British India .......
69,627
39,283
—
68,240
Netherlands .. .....
22,747
—
44,388
14,796
Switzerland .......
—
Belgium ...........
12,853
38,559
Japan... ........
341,535
—
17,322
China..... ......
—
Egypt ........ ....
8,135
—
—
Cuba ...................
6,544
Germany... *.....
25,443
76,329
25,443
25,443
**
ém
7,088
21,263
5,482,509
1.244,881
1,599.886
985,939
1/ Included in total imports, column 2.
prepared by the Bureau of Customs
IMMEDIATE RELEASE
November
V
1950
i
Preliminary data on imports for consumption of cotton and cotton waste chargeable to the quotas
established by the President's Proclamation of September 5, 1939, as amended
COTTON (other than linters) (in pounds)
Cotton under 1-1/8 inches other than rough or harsh under 3/4**
Imports Sept. 20, 1930, to October 28. 1950, Incl.
Established Quota
Imports
Country of Origin
Established Quota
Country of Origin
Egypt and the AngloEgyptian Sudan ....
Peru
....
British India ....
China.... .....
Mexico ........
Brazil .......
Union of Soviet
Socialist Republics
Argentina ...........
Haiti.... ......
Ecuador.... .
Honduras ........
Paraguay.... .....
60,913
Colombia
......
Iraq ..................
British East Africa ...
Quota Filled
Netherlands E. indies
24,458
Barbados ..:......
l/0ther British W. Indies
475,124
Nigeria ...;.... .
5,203
2/0ther British W. Africa
237
j/0ther French Africa ..,
9,333
Algeria and Tunisia ...
1/ Other than Barbados, Bermuda, Jamaica, Trinidad, and Tobago.
2/ Other than Gold Coast and Nigeria.
3/ Other than Algeria, Tunisia, and Madagascar.
4
783,816
247,952
2,003,483
1,370,791
8,883,239
618,723
Imports
752
871
124
195
2,240
71,388
21,321
5,377
16,004
689
Cotton, harsh or rough, of less than 3/4”
Imports Sept. 20. 1950» to Oct« 28, 1950
Cotton 1-1/8* or more, but less than 1-11/16**
Imports Feb, 1, 1950, to Oct. 28, 1950
Established Quota (Global)
Established Quota (Global)
Imports
Imports
45,656,420
Quota Filled
Cotton 1-3/8*1, but less than 1-11/16*
Imports Oct. 12, 1950. to Oct# 28, 1950
70,000,000
2,245,541
Cotton, harsh or rough (except cotton of
perished staple, cotton grabbots and
cotton pickings) of 1—3/16**or more“but
leas than 1-3/8**
Established Quota (Global)
Imports Oct. 9 a 1950, to Oct, 28, 195Q
E s ta b lis h e d
Q a o ta
CG l o b a l ^
7
~Tm n o r t a
,
5 0 0 ,0 0 0
Imports
l,5Si,054.
TREASURY DEPARTMENT
TTi/ÎTi/rTT H T A ip -p
TDTPT TT û CJTT
W n
~ „.4-----
o
r-
Imports Oct. 9* 1950» to Oct. 28« 1950
E s ta b lis h e d .
Q u o ta
(G lo b a l^
7
T m r .r .y ta
,
5 0 0 ,0 0 0
l*53l,05U
TREASURY DEPARTMENT
IMMEDIATE RELEASE
Vaednesday, November 8, 1950
Washington
S-2501
Preliminary data on imports for consumption of cotton and cotton -waste chargeable to the quotas
established by the President*s Proclamation of September 5, 1939, as amended
•
Country of Origin
COTTON (other than linters) (in pounds)
Cotton under l~l/8 inches other than rough or harsh under 3/4u
Imports Sept* 20, 1950» to October 28, 1950« Incl*
Established Quota
Egypt and "the Anglo—
Egyptian Sudan **•
Peru
British India
China .•••••••••••••
Mexico .............
Brazil
Union of Soviet
Socialist Republics
Argentina ..........
Haiti ..........
Ecuador •
783*816
247,952
2,003,483
1,370,791
8,883,259
618,723
Imports
—
60,913
—
Quota Pilled
475*124
5,203
237
9,333
24,458
—
;
«■*
— .
Country of Origin
Established (
Honduras ...........
Paraguay
Colombia ...........*
Iraq . ...............
British East Africa
Netherlands E* Indies
Barbados .......... *
l/Other British W* Indies
Nigeria •••••••••••••
2/0ther British W. Africa
3/Other Prench Africa *
Algeria anc} Tunisia *
Imports
752
871
124
195
2,240
71,388
21,321
5>377
16,004
689
—
1/ Other than Barbados, Bermuda, Jamaica, Trinidad, and Tobago.
2/ Other than Gold Coast and Nigeria*
3/ Other than Algeria, Tunisia, and Madagascar*
Cotton, harsh or rough, of less than 3/4!>
Imports Sept* 20, 1950* to Qct* 28, 1950
Cotton l—l/8n or mpre, but less than l-ll/l6n
Imports .Feb* 1, 1950* to Oct* 28, 1950
Established Quota (Global)
Established Quota (Global)
Imports.
70,000,000
2,245,541
Cotton, harsh or rough (except cotton of
perished staple, cotton grabbots and
cotton pickings) of 1-3/16” or more but
less than 1-3/8"
Imports Oct* 9« 1950, to Oct* 23, 1950
Established Quota (Global)
Imports
... 1*500*000 ...
•
117*787" •
Imports
45>656,420
iQuota Pilled
Cotton 1-3/8n , but less than 1—11/16”
Imports Oct* 12, 1950* to Qct* 28, 1950
Established Quota (Global)
7,500,000
Imports
lj501,054
- 2 ~
COTTON WASTES
(In pounds)
COTTON CARD STRIPS made from cotton having a staple of less than 1-3/16 inches in length, COMBER
WASTE, LAP WASTE, SLIVER WASTE, AND ROVING WASTE, WHETHER OR NOT MANUFACTURED OR OTHERWISE
ADVANCED IN VALUE} Provided, however, that not more than 33-1/3 percent of the quotas shall
be filled by cotton wastes other than comber wastes made from cottons of 1-3/16 inches or more
in staple length in the case of the following countries} United Kingdom, France, Netherlands,
Switzerland, Belgium, Germany, and Italy:
:
Country of Origin
Y
Established
T p m QUOTA
*
♦United Kingdom ».... ..... 4,323,457
Canada ............... ....
239,690
....
227,420
France
British I n d i a ...... .....
69,627
Netherlands .A •••••».....
68,240
Switzerland.... .••••.
i8
38
Belgium *
.
38,559
Japan •
....
341,535
C h i n a ............ .
17,322
Egypt .............. .
8,135
C u b a ....... ..............
6,544
Germany ............
76,329
Italy .........
___
21,263
5.482.509
} Total imports
s
: Sept. 20, 1950, }
s to Oct. 28, 1950 :
Established
33-1/3? Of
Total Quota
897,371
219,659
63,125
39,283
—
1,441,152
—
75,807
—
—
—
—
—
—
25,443
—
22,747
14,796
12,853
—
«
—
—
25,443
7,088
1,244*881
1 .599.886
s
Imports
1/
:Sept. 20, 1950
ito Oct. 28, 1950
897,371
—
63,125
—
—
— .
—
~
—
—
25,443
—
985.939
1/ Included in total imports, column 2»
Prepared by the Bureau of Customs
-3 -
any State, or any of the possessions of the United States, or by any local tax
ing 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 bZ 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 in
clude in his income tax return only the difference between the price paid for
such bills, whether on original issue or on subsequent purchase, and the amount
actually 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. Copies
of the circular may be obtained from any Federal Reserve Bank or Branch.
-
2
-
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 Trill be opened at the Federal
Reserve Banks and Branches, foliarung 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 shal]
be final.
Subject to these reservations, non-competitive tenders for t200,000
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
November 16 , 1950
s
in cash or other immediately avail-
able funds or in a like face amount of Treasury bills maturing November l6, 195
Cash and exchange tenders will receive equal treatment.
Cash adjustments will lie
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.
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
TREASURY 'DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Thursday. November 9. 1950---- •
43^)
The Secretary of the Treasury, by this public notice, invites tenders for
Sl.100.000.000
—*
, or thereabouts, of
91
jS3t
-day Treasury bills, for cash and
.
.
in exchange for Treasury bills maturing wnveiriher^,. 1Q50-- .» t0 1?suecl on
a discount basis under competitive and non-competitive bidding as hereinafter
provided. The bills of this .series will be dated Hovember a6, 1950-- and
will mature February 15, 1951
-.....
, when the face amount will be payable without
V&flx
interest. They will be issued in bearer form only, and in denominations of
$1,000, $5,000, $10,000, $100,000, $500,000, and $1,000,000 (maturity value).
Tenders Trill be received at Federal Reserve Banks and Branches up to the
closing hour, two o’clock p.m Eastern Standard time,Monday« Number 13.. 195.9.
Tenders will not be received at the Treasury Department, Washington. Each tender
must be for an even multiple of $1,000, and in the case of competitive tenders
the price offered must be expressed on the basis of 100, with not more than three
decimals, e. g., 99.925. Fractions may not be used. It is urged that-tenders
be made on the printed forms and forwarded in the special envelopes which rail
be supplied by Federal Reserve Banks or Branches on application therefor.
Others than banking institutions will not be permitted to submit tenders
except for their awn 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 Troasury bills applied for,
TREA SU RY DEPARTM ENT
Information Service
P L E A S E MORNING NEWSPAPERS,
Thursday, November 9 , 1950.»
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 November 16 ,
1950, to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided.
The bills of this
series will be dated November 16 , I95 O, and will mature February 15 ,
1951, when the face, amount will be- payable without interest *. They
will-be. issued in bearer form only, and in denominations of $ 1 ,000,
$5,000, ^ 10 ,000, $ 100,000, $ 500*000, and $ 1 ,000,000 (maturity 1v a l u e ) .
Tenders will be received at Federal Reserve Banks and Branches
up to the closing hour,, two o ’clock p.m., Eastern Standard time,
Monday,.November 13, 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 therefor.
Others than banking Institutions will 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 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 b i d s . 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
2
completed at the Federal Reserve Bank on November 16 , 1950, in cash
or other immediately available funds or in a like face amount of
Treasury bills maturing November 16 , 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 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 sub
sequent purchase, and the amount actually received either upon sale
or redemption at maturity during the taxable year for which the
return is made, as ordinary gain or loss.
Treasury Department Circular No. 4l8, as amended, and this
notice, prescribe the terms of the Treasury bills and govern the
conditions of their i s s u e . Copies of the circular may be obtained
from any Federal Reserve Bank or Branch.
0O0
2
except for the data to be overprinted, will suffice.
Also, it will not be necessary to engrave new plates
when there is a change in either of the signatures
appearing on the notes.
Elimination of the necessity for stocking new
notes of each denomination for each of the Federal
Reserve Banks will reduce the number of required com
binations for stocking purposes from 108 to 9.
The Bureau of Engraving and Printing will be able
to make certain further savings from the more expe
ditious scheduling of production.
-oOo-
/? c °
The Treasury Department announced today that the
first delivery of Federal Reserve notes designated
Series of 1950 had been made by the Bureau of Engrav
ing and Printing to the Federal Reserve System.
The
new series of notes have the signatures of the Secre
tary of the Treasury and the Treasurer of the United
States, the series designation, and the identifica
tion of the issuing Federal Reserve Bank overprinted
in the same manner as the serial numbers and the seal,
instead of engraved as heretofore.
The serial numbers of the notes are slightly re
duced from their former size, and are now identical in
style with the serial numbers which appear on one
dollar silver certificates.
The identification of
the issuing bank and the Treasury Seal have also been
reduced in size.
Except for these détails the new notes are un
changed in design from those issued heretofore.
The notes
the first delivery are for
the use of the Federal Reserve Bank of Richmond.
The
new notes are in denominations of $5, $10 and $20.
Several economies will result from the new pro
duction method.
It will not be necessary to keep on
hand large stocks of notes of each denomination for
each of the twelve banks of the Federal Reserve System
Stocks of notes for each denomination, complete
IMMEDIATE RELEASE,
Thursday, November
9,
S -2503
1950.
The Treasury Department announced today that the first
delivery of Federal Reserve notes designated Series of 1950
had "been made by the Bureau of Engraving and Printing to"the
Federal Reserve System.
The new series of notes have the
signatures of the Secretary of the Treasury and the Treasurer
of the United States, the series designation, and the identifica
tion of che issuing Federal Reserve Bank overprinted in the same
manner as the serial numbers and the seal, instead of engraved
as heretofore.
The serial numbers of the notes are slightly reduced from
their former size, and are now identical in style with the
serial numbers which appear on one dollar silver certificates .
1*fre identification of the issuing bank and the Treasury Seal
have also been reduced in size.
Except for these details the new notes are unchanged in
design from those issued heretofore.
The notes in the first delivery are for the use of the
Federal Reserve Bank of Richmond.
The new notes are in
denominations of $ 5 , $10 and $ 20 ,
Several economies will result from the new production
method.
It will not be necessary to keep on hand large stocks
of notes of each denomination for each of the twelve banks of
the Federal Reserve System.
Stocks of notes for each de
nomination, complete except for the data to be overprinted, will
suffice. Also, it will not be necessary to engrave new plates
when there is a change in either of the signatures appearing on
the n o t e s .
e
Elimination of the necessity for stocking new notes of each
denomination for each of the Federal Reserve Banks will reduce
the number of required combinations for stocking purposes from
lOo to 9»
The Bureau of Engraving and Printing will he able to make
certain further savings from the more expeditious scheduling
of production.
0O0
TREA5URY OEPARTMEKT
STATUTORY DEBT LIMITATION
AS OP
F? seal
October 31» 1950
S^rvlce
Washington,
10
Section 21 of Second Liberty Bond Act, as amended, provide that the face amount of obligations issued
tinder authority of that Act, and the face amount of obligations guaranteed as to principal and interest by the
United States, (except such guaranteed oblibations as may be held by the Secretary of the Treasury), "shall not
exceed ,in the aggregate $275,CCO,COO,COO (Act of June 26, 1946J t'.S.C., title 21, sec, 957b), outstanding at
any one time. For purposes of this section the current redemption value of any obligation issued on a discourt
basis which is redeemable prior to maturity at the option of the holder shall he considered as its face amount,'1
The following* table shews the face amount of obligations outstanding and the face amount which can still
be issued under this limitation:
$275,000,000,000
Total face amount that may be outstanding* at any one time
Outstanding
Obligations issued under Second Liberty Bend Act, as amended
Interest-bearing?:
x_^ x__ _Qj_ ...
Treasury bills ....... .... ....$ 1 3 » 6 2 9 » 2 8 9 » 0 0 0
Certificates o f .indebtedness
.....
5,372,668,000
Treasury notes ----- _....._________
k5-9k7.079.300$
■
Bonds Treasury ________ ___________ _
»,9^9,036,300
, ,
96.670,158,300
Savings .(current redemp, value)..... - 5 7 , 9 5 ^ . ^ , 3 7 2
Depoe itary____ .... «._____________
283 *179»500
Armed Forces leave__ ___ ____ ___
Investment series
_________ _
2 2 3 »3-33.» 9 0 0
9S3.030.000
Special Funds —
Certificates of indebtedness.
1 8 ,966 ,613,000
».S72.60S.000
Treasury notes
Total interest-bearing______ __ _____ ____ __________
Matured, interest-ceased ........ ......... —
Bearing no interest!
War savings stamps________________
Excess profits tax refund bonds___
1 5 6 ,083 ,97^,072
33,539.218,000
25^,572,228,372
3 3 3 ,5 » , 025
----- ....
^7,186,2^0
2,980,502
Special notes of the United States;.
Internat '1 Monetary Furd series —
1*270»000.000
1*320*166*7^2
256,225,959,139
19,531,386
_____319
19,531.705
Total__ ___________ — ------- ---- Guaranteed obligations (not held by Treasury):
Interest-bearing:
Debenture s: F .H. A * _________ .......___ ...
Demand obligations: C,C,C.______ ___
..
2,229,52521,761,230
Matured, interest—ceased ~------ — --- ....—
2 S 6. 2 k 7.720.3ft
Grand total out,standing_____________ _______________________
Balance face amount of obligations issuable under above authority.. .
Reconcilement with Statement of the Public Debt - 0cto*b©r
(Daily Statement of the United States Treasury,
"
U
November
.18.752,279,631.
31. 195®
1, 1950)
p*uc a,W __________________ __ ___________ ________________ 256,936.999^1
Total gross public debt and guaranteed obligations_____ ,______________ _____ *
_____»*2 5 6 , 9 5 8 »761,0
Deduct - other outstanding public debt obligations not subject to debt limitation____ _______
711,0^0.^2
256 ,2^ 7 .720 ,3®
y'i
Si 5
STATUTORY DEBT LIMITATION
.AS OF October 31, 1950
50
November 10, 1950
Section 21 of 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 obligation^ as may be held by the Secretary of the Treasury), “shall
not exceed in the aggregate $275,000,000,000 (Act of June 26, 194-6; U.S.C., title 31,
sec« 757b), outstanding at any one time0 For purposes of this section the current
redemption value of any obligation issued on a discount basis which is redeemable
prior to maturity at the option of the holder shall be considered as its face
amount »“
The following table shows the face amount of obligatibns outstanding and the
face amount which can still be issued under this limitation;
Total face amount that may be outstanding at any one time
$275,000,000,000
Outstanding
Obligations issued under Second Liberty Bond Act, as amended
Intere st~be aring $
Treasury bills» •................ $13,629,289,000
Certificates of indebtedness*...* 5,372,668,000
Treasury notes*..• *........ 45s94-7»079»300 $ 64,949,036,300
Bonds Treasury........... *.......... 96,670,158,300
Savings (current *redemp* valu e ) 57,954,474,372
Depositaryo
283,179,500
Armed Forces Leave«......... .
223,131,900
Investment series *........ .
953,030*000
Special Funds Certificates of indebtedness*«. 18,966,613,000
Treasury notes»•••••»••*.•«••.. 14,572.605,000
Total interest-bearing.......
Matured, interest-ceased........c....
Bearing no interest;
War savings stamps ................ *
Excess profits tax refund bonds,,«.*«
Special notes of the United States;
Internatfl Monetary Fund series••
Total*..
156,083,974,072
33,539,218,000
254,572,228,372
333,564,025
47,186,240
2,980,502
l r270,000,000
1.320.166.742
256,225,959,139
Guaranteed obligations (not held by Treasury);
Intere st-bearing;
19,531,386
Debentures; F*H*A. *••••««...... .
Demand obligations; C.C.C* « ......
..........319
Matured, interest-ceased».....,*.... .............
19,531,705
......2,229^525
21,761,230
Grand total outstanding. ••*. •.... .................»
256»247 »720,369
Balance face amount of obligations issuable under above authority*... 18.752.279«631
Reconcilement with Statement of the Public Debt - October 31, 1950
(Daily Statement of the United States Treasury, November 1, 1950)
Outstanding Total gross public debt.*'*.......................................
256,936,999,778
Guaranteed obligations not owned by the Treasury,.... ...........
.....21 >761 >230
Total gross public debt and guaranteed obligations..,............... 256,958,761,008
Deduct •» other outstanding public debt obligations not subject to
debt limitation.......................^
.....
711^040,639
256,247,720,369
S-2504
IMM E D I A T E R E L E A S E
Friday, N o v e m b e r 10,
1950
0 j
S e c r e t a r y S n y d e r t o day a n n o u n c e d the a p p o i n t
m e n t of C o r o d o n S. Fuller, Foxboro, Mass., as
C h a i r m a n of the T r e a s u r y A d v i s o r y C o m m i t t e e on
S a v i n g s B o n d s for the S t ate of Mas s a c h u s e t t s . Mr
F u l l e r s u c c e e d s James V. Toner, P r e s i d e n t of the*
B o s t o n E d i s o n Company, w h o s e r v e d as State C h a i r
m a n for two years.
„
_ In accepting* the appointment, Mr. F u l l e r said ^ 1
Mr. T o n e r had a c h i e v e d an o u t s t a n d i n g r e c o r d in
d e v e l o p i n g the S a v i n g s B o n d s P r o g r a m in Massaeifesetts
Company *
c o n t i n u o u s l y a c t i v e in the T r e a s u r y fs S a v i n g s B o n d s
P r o g r a m since b e f o r e P e a r l Harbor, and is o f t e n
r e f e r r e d to as " M a s s a c h u s e t t s 9 N u m b e r One V o l
unteer.
He has s e r v e d as C h a i r m a n of all b o n d
d r i v e s in his home town of Foxboro, and as A s s o
ciate D i r e c t o r and State V i c e - C h a i r m a n of the
Massachusetts Savings Bonds Advisory Com m i t t e e .
He is a T r u s t e e of the N o r w o o d Hospital,
D « ^ a^ u r e r
t*?€ F o x b o r o C h a p t e r of the A m e r i c a n
+ i ° S s -?t C h a i r m a n of the A l u m n i A d v i s o r y Co u n c i l
ot the C o l l e g e of B u s i n e s s A d m i n i s t r a t i o n of
B o s t o n University, a nd P a s t P r e s i d e n t of The
F o x b o r o Lions Club.
. A d v i s o r y c o m m i t t e e s are e s t a b l i s h e d in e a c h
D_tate a nd the D i s t r i c t of C o l u m b i a to c o n s u l t w i t h
B e 0 ir? asuI*y
its P r o g r a m to p r o m o t e the sale
aT in^ s
th r o u g h p a y r o l l savings, banks,
schools, and o t her b u s i n e s s and civic groups.
-oOo-
52
IMMEDIATE RELEASE,
Friday, November 10, 19 5 0 »
S -2505
Secretary Snyder today announced the appointment
of Corodon S. Fuller, Foxboro, Massachusetts, as
Chairman of the Treasury Advisory Committee on Savings
Bonds for the State of Massachusetts.
Mr. Fuller
succeeds James V. Toner, President of the Boston Edison
Company, who served as State Chairman for two years.
In accepting the appointment, Mr. Fuller said
Mr. Toner had achieved an outstanding record in
developing the Savings Bonds Program in Massachusetts.
Mr. Fuller is Vice-President of the Foxboro
Company,manufacturers. He has been continuously active
in the Treasury's Savings Bonds Program since before
Pearl Harbor, and is often referred to as "Massachusetts'
Humber One Volunteer." He has served as Chairman of all
bond drives in his home town of Foxboro, and as
Associate Director and State Vice-Chairman of the
Massachusetts Savings Bonds Advisory Committee.
He is a Trustee of the Norwood Hospital, Treasurer
of the Foxboro Chapter of the American Red Cross,
Chairman of the Alumni Advisory Council of the College
of Business Administration of Boston University, and
Past President of The Foxboro Lions Club.
Advisory committees are established in each State
and the District of Columbia to consult with the
Treasury on its program to promote the sale of Savings
Bonds through payroll savings, banks, schools, and
other business and civic groups.
0O0
RELEASE MORNING NEWSPAPERS,
Tuesday« November ü u m a
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 November 16,
1950, and to mature February 15, 1951, which were offered on November 9, were
opened
at
the Federal Reserve Banks on November 13*
The details of this issue are as follows:
Total applied for - $1,716,782,000
Total accepted
- 1,100,787,000 (includes #124,780,000 entered on a non
competitive basis and accepted in full at
the average price shown below)
Average price
- 99*655 Equivalent rate of discount approx, 1.366$ per annua
Range of accepted competitive bids:
High
Low
- 99*680 Equivalent rate of discount approx. 1.266$ per annua
- 99.652
H
* » * * * »
«
1*377
n
11
(5 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
$
for
10,425,000
1,265,544,000
32 ,015,000
46.685.000
1 4 .4 4 2 .0 0 0
8.133.000
182,904,000
.
32 .
021.000
16 416.000
Total
Total
Accepted
#
10 ,425,000
713.344.000
17.265.000
46.685.000
14.442.000
8.133.000
143.654.000
16.221.000
7 .1 2 0 .0 0 0
7 .1 2 0 .0 0 0
31.965.000
31.965.000
-69*112.000
39,612.000
$1,716,782,000
$1,100,787,000
3 1 .9 2 1 .0 0 0
TREASU RY DEPARTM ENT
Information Service
WASHINGTON. D .C .
54
RELEASE MORNING NEWSPAPERS,
Tuesday, N o v e m b e r 14, 1950,
S -2506
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 November lb, 1950, and to mature February 15, 1951,
which were offered on November 9 , were opened at the Federal Reserve
Banks on November 13.
The details of this issue are as follows:
Total applied for - $1,716,782,000
Total accepted
- 1,100,787,000 (includes $124,780,000
entered on a non-competitive
basis and accepted in full at
the average price shown below)'
Average price
- 99.655 Equivalent rate of discount approx.
1 .366$ per annum
Range of accepted competitive bids*
fti&h
- 99.680 Equivalent rate
1 .266$
- 99.652 Equivalent rate
1 .377$
Low
of discount approx.
per annum
of discount approx.
per annum
(5 percent of the amount bid for at the low price was accepted)
Federal Reserve
District_______
Total
Applied for
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
$
10,425,000
1,265,54A,000
32.015.000
46.685.000
14.442.000
8 ,133,000
182,904,000
16.416.000
7 , 120,000
TOTAL
Total
Accepted
$
10,425,000
713,3^4,000
17 .265.000
46.685.000
14.442.000
8 ,133,000
1^3,654,000
16.221.000
7 , 1 2 0 , 0 0 0
31 .965.000
31.965.000
32.021.000
69 .112.000
31.921.000
59 .612.000
$1,716,782,000
$ 1 ,100 ,787,000
0O0
November 6, 19$0
m
m .
B A H f^ x y »
The following transactions were made in direct and guaranteed
securities of the Ooven»isnt for Treasury investment and other accounts
during the month of October, 1950«
Purchases • • # * « * « » * • • # • • •
^®0jO55#OQO
Sales * • * • • * • • * « « * • • • • •
Het Purchases • * * » • • • «
• « • # # $
5* ^ $ # 7 5 0
Chief, Division of Investment«
Wisecarver 11/6/50
TREA SU RY DEPARTM ENT
Information Service
WASHINGTON, D .C .
R E L E A S E M O R N I N G NEWSPAPERS,
Serfcurday,
\J\/cçfv\€*d&'\ »
lty; 1950.—
\tfsT6
ôdfhs
D u r i n g the m o n t h of ê e ^ t e a è e r
19 5 0 , m a r k e t t r a n s a c t i o n s in d i rect
and g u a r a n t e e d s e c u rities
Government
o f the
for T r e a s u r y i n v e s t m e n t
and o t h e r a c c o u n t s r e s u l t e d in net
purchases
of $ 5 , 0^
Snyder announced
tJSC
900 , S e c r e t a r y
today.
0O0
TREASU RY DEPARTM ENT
Information Service
Wa s h i n g t o n , d . c .
RELEASE MORNING NEWSPAPERS
W e d n e s d a y , N o v e m b e r 15, 1 9 5 0 .
D u r i n g the m o n t h of O c t o b e r
1950, m a r k e t
transactions
a nd g u a r a n t e e d s e c u rities
in d i r e c t
of the
G o v e r n m e n t for T r e a s u r y i n v e s t m e n t
an d o t h e r ac c o u n t s
r e s u l t e d i n net
p u r c h a s e s of $5,848,750,
S n y d e r a n n o u n c e d today.
0O0
Secretary
S-25 0 7
tie cherish.
11
it has been an honor for
>ear tonight tiefor
s Ki o y p
of devoted pub)ic servants who are
directing their tal«
toward
uring the sue
. 1.
H
*
f i
t* &
I
fu i
accompI ishinent of this great cause
m
c
Sc
- 31
cooperative efforts of a nation of
individuals united
in determination
to protect our American
institutions,
and united with other free peoples to
widen the area
in which men can
Iive
without fear.
Nor must we ever forget for an
instant that ours
is a nation
in which
we are privileged to work together -not for the autocracy of the few, but
for the advancement and well-being
of all our people and the freedoms
n'lii
‘ .
g r a f t .,» .J K l
±illla
at the same time providing for
their own personal future security.
Never in our history has the need
been greater for nationwide teamwork
on the part of all Americans.
the stakes ever been higher.
Nor have
in our
battle for the preservation of freedom,
we are fortunate to be blessed with
much of the wor l d ’s greatest material
resources.
But we must never forget
that our greatest strength comes from
our human resources -- from the
o er
pif c*&
* I r*
Bond Prc
t h r I
d
y
ited States S
ays in promoti
Amer leans
f t
ts
Si
yf
v
yy
th
i planning
J&
of individual expenditures and greater
inaividual savings,
cornerstone
trie financial
Moreover,
d
II of our
it i
ofour efforts to p
ne d
i t
i r*
it is a oregram which ena
to share in
responsibiIities of this Nation whi
It was money saved during World
War II that assisted materia I Iy in
holding down wartime
pressures
inflationary
in those years.
And it was
this huge financial reserve which
eased to a large extent business
reconvers ions
in the postwar years.
Just so, the money saved
in t o d a y ’s
critical defense period wiI I assure a
stable economy that wi I I return us to
sound peacetime prosperity after the
present emergency
is over#
together in common
interests to
purpose
It is particularly
this time that
important at
income
is
product ive
efforts be saved instead of thrown
into the spending stream to push
up prices.
And there is no more
direct anti- infI ationary effort that
individual Americans can make than to
put their increased incomes into
M
26
other restraints provided in the
Defense Production Act of 1950t
together with the recent increases
in income taxes on individuals and
corporations,
will act as a partial
brake on excessive spending.
But in
the final analysis, the truly
effective brake on inflationary
forces will only come when all our
individual consumers, businessmen,
workers and employers exercise
seIf-restraint and put aside personal
ill
53
25
years#
The job that
lies ahead
in this
field Is not alone one for Government.
Strong national
leadership is, of
course, demanded, but no measures
which the Government may take can be
truly effective without the who Iehearte]
IlflitP
cooperation of every group and every
active citizen
U
in our Nation.
overnment restrictions on
consumer and real estate credit that
have already been put into effect^ and
II
1
But even
budget
rebu
in
if we are a tile
.0% 'jfim
3O Q O
jK*\
Qf U
0 f ,
kee o
mr
l
i s trone mi Ii
establishment cannot be superimposed
y
s* o
I*.,'.
6-
production witnout creating vario
strains ana shortages.
i
■
A major t
1
to keep our economy on
sol idi y-cefi
ation stc
f s -»
I pi ice in f iati on v*ou id
unoerm m e our currer
1t WQUi iff!
O
eaten serious consequences
to ine
omes and employment in later
Incomes
- 23 finance ail of our expanded needs.
In view of trie lag between
Government appropriat Ions and
expenditures,
it will be some time
before the Federal budget fully
reflects the increased
military program.
t of the
Meanwhile,
the
recent increase in taxes, reductions
in other expend itures, and high levels
of business will help us materially
in bringing the budget more closely
into balance.
83
itures
ment triât
shouid
that
\ fe f»
further
ill should
do
HpbbHbI m
iM ï# '
be Iieve
how lare
our
increases wi
ne ven tie Act
achieve th is eoa I,
¿O
a
IS
I sincerely hope that
K
H
i l '
vote additional
have to be to
in this à 5reetil
ess will
taxes which,
I
IIli
I
J
§
i
i
measures,
wi I I produce enough revenue to
seminar panels.
But I should
like to
take a few minutes to discuss an
equally
important requisite
in the
protection of our freedoms, and that
is the preservation of the economic
integrity of our country while meeting
our enlarged defense reouirements.
For unless we insure the soundness of
our domestic economy,
the goals of
our enemy will be achieved as surely
as if we were conquered on world
battIefrents.
IffliSsilá»'’ Ÿ'
t r i
XT
-
vate
19
has spent
bill'
new
ME . . '
■
«
1
Ipisent
since
in
in
b I i Ii on
increase farm output.
»
i s
W ilS I
presume to discuss
part icu
your agencies can best direct their
in meeting our
liBi
m
, for these are matters
which are
taken up in your
must make our plans accordingly.
The
defense production job that lies ahead
is a tremendous one.
Fortunately
it
is one that we are better equipped to
handle than at any previous time in
our history.
The new scientific
discoveries, new industrial materials
and newJproduction techniques,
which
have been developed and applied in
recent years, have given a great
impetus to production efficiency.
a record program of modern izati on.
In
come facelto face wi
admits ili er
makes right".
. ,:v4
'%ß:
now
II r
an enemy
eheri sh
hope for
Much
our national o
« s t nece
a r m a m e n t
it®
I M Ä Ü i i Ä i ® 1
I » i
For four years
have been coming
to
se technical
seminars,
st, to
held at yc
acquaint yourselves with
ograms and
IcI e s ,
how your state
to 1
es can best
îr planning blueprints to meet
national as v
♦
A-
it
f
is
needs
demonstrati on of the
oe o f unity of action and purpose
Amer
ai Ion
nat ions
past five years.
Whi le we have always
had a certain amount of rivalry among
Ill»
our states -* and each of us is the
m
m m
first to extol the virtues of his
m
own particular state -- we also know
that the prosperity of each of our
states
■ «
•
is dependent upon the stabi Iity
™
of our Nation as a whole.
In joining together
in national
association you people have set aside
traditional state rivalries to share
|j
your experiences and to plan together.
consta
been
increas
“oduct iv ity.
$
C
jJ I
1 I as our Nation, can
||ll
of the most importantiroIe
our s
coment
Ies n
o
r%
m
HI
in meeting t
of
of
lessons which they
taught us
g
_
in
a
economy for
Your n
formed
in an equally critical period
in our h
C' --/y
ti
•ihen our
crue ia I test
owing WorId War 11 of
could con vert a
wartime productive
it
sly expanded
into
m
'î û
Xo
iney are truly
ir
s
on to urge that an auxiliary
of Government be formed to assist
s u p p 1emtìnt avai 1ab 1e pr ?vate
te resourc
>
in the 1iromotion of1 our arts
' ■1 H M M ¥
kr icu
, manufacture.
1 could not h
I accepted this s
wh«t a real t h
i
s e c r e t
commer
p but think.wnen
/
In
NO
i n v i t a t i o n
Id ¡¡have¡bee
Hamilton had been
eged to meet the members of
wlf
■■■Æ,
p
i,P)<
modern aay planning organizati on.
«lij/VV , i#;
,
'■ '
M T ‘ • ' V, •;.v ,.
V
1
Treasury *«► Alexander Ham i Iton
in •his ce
t*
Hep
on
Manufactures’1 back in 1731 pointed
to the splendid work then being done
by the Pennsylvania Society-for the
Promotion of Manufactures and Useful
Arts ano pa 1o tribute
in these.words:
H
"it may confidently be affirmed,
that
there is scarcely any thing which has
been devised, better calculated to
exc i te a general
excite
f: 1 ■'
S lip
pi£
AsSgMPMMM
i
spirit of improvement,
than the institutions of this nature.
commun 11 ies
just as truly as the
newer ones -- can make a fresh start
with
l be
materials,
the resources,
and the opportun11ies at hand and
emerge beautiful as we I I as great
cities.
i v I,
You may be interested to know that
"■. Jj1
.
■;.i
"y'/, .
;:-;i
it is far from a new thing for a
Secretary of the Treasury to be
cognizant of the effective work that
planning organ izati ons such as yours
perform.
Our first Secretary of the
■
stop
could scarce I y . reeogri i ze
smoky city in its
r^
f|
Trie moderni
in recent
this great industrial ci
demonstrated
st
w
is acnieving in community development
B K iB i
I
through the HBu <Id Your Home
pI
i n t i pi one©
♦ n
sve travel led through
14ijvs.es t
HI
M'
TT
s/
f ' %$-v «¿3P- * Ip g
I results
t) 8
H iS V 8
V I ftW f1
#1
r ¡¡jÉÉfc 1
€ C Ia«
|C
a
3g r a m s
ed o
.i ^ H
#fií
ianas ana dust bowls into nig
oauctive corn fi a
$
SÍ
O
* Í'
have a Iso
In g
I "f#
\
8 LS 6 i8
p f t€a&
fen or sv i Ieeed tí
4
between agriculture and industry is
o
vident on all sid
In better
plants and equi ornent in the factorie
and on the farms;
condItIons.
ch
wI ai
a n y
in better « ork }n
er
n u m e s
etter
e r - Inore a s In
standards of Ii v in
m
*
And if you will pardon a li
« n a I advertisement for mv own
n a t i v e state#
lighty pleased
upon my return to Arkansas this past
c. o o
ective results it
Ill V un
limited to looking over some of
your planning blueprints.
in various sections
. I
i
As I
our
Is
ty to personally see
of this section or our
in
commanded
68
It is a real pleasure for me
iaj&e here tonight with the
representatives of our state planning
and development agencies.
■ihî le it
I
is the first opportunity I have had
to meet many of you personally,- I
9
)
have been privileged in recent years
...
%
to have some first-hand aceuaintance
with the splendid work your
individual groups are doing in the
progressive development of our
states and communities.
TREASURY" DEPARTMENT
Washington
The
following address
by
Secretary Snyder before the Association of State Planning
and Development Agencies at the National Press Club, Washington, D. C», is scheduled
/
for delivery at 9 3^M, EST^ Tuesday, November In, and is for release at that t ime.
'
TREASURY DEPARTMENT
Washington
The following address "by Secretary Snyder
"before the Association of State Planning
and Development Agencies at the National
Press Club, Washington, D.C., is scheduled
for delivery at 9 P, M. EST Tuesday,
November '14, 19^5, and is for release at
that t i m e .
It is a real pleasure for me to be here tonight with the
representatives of our state planning and development agencies.
While it is the first opportunity I have had to meet many of
you personally, I have been privileged in recent years to have
some first-hand acquaintance with the splendid work your in
dividual groups are doing in the progressive development of our
states and communities.
Nor has my acquaintance been limited to looking over some
of your planning blueprints. As I have been in various sections
of our country, I have also had the opportunity to personally
see many concrete evidences of the results of your labors.
This
spring I had the privilege of revisiting some of our Southern
states. While the spectacular advance of this section of our
country in the past decade has commanded nationwide attention,
I must admit that I did not fully appreciate the vast changes
which have occurred until I saw many of them for myself.
That region, acting through its planning and development
agencies, has taken advantage of the tremendous expansion of
its industrial facilities in World War II years to encourage even
greater industrialization in peacetime. The prosperity which has
come to the South as a result of a better balance in its economy
between agriculture and industry is evident on all sides -- in
better plants and equipment in the factories and on the farms;
in better working conditions, better homes, better schools and
ever-increasing standards of living.
92
-
2
-
And if you will pardon a little personal advertisement for
my own native state, I was mighty pleased upon my return to
Arkansas this past May to see the effective results it is
achieving in community development through the MBuild Your Home
Town1' plan which Arkansas pioneered.
As I have travelled through the Midwest and Southwest,
I have viewed the beneficial results of reclamation and water
resources development programs which have turned barren lands
and dust bowls into highly productive corn fields, vegetable
acreages, and fruit orchards.
I
have also been privileged to stop and admire the new look
that many of our cities throughout the country are taking on as
a result of civic planning and development encouraged by your
agencies. Only last month I was in Pittsburgh and could
scarcely recognize the once smoky city in its new sunny attire.
The modernization program undertaken in recent years by the
people of this great industrial city has demonstrated that our
older communities -- just as truly as the newer ones -- can
make a fresh start with the materials, the resources, and the
opportunities at hand and emerge beautiful as well as great
cities.
You may be interested to know that it is far from a new
thing for a Secretary of the Treasury to be cognizant of the
effective work that planning organizations such as yours
perform. Our first Secretary of the Treasury -- Alexander
Hamilton -- in his celebrated ’’Report on Manufacturers” back
in 1791 pointed to the splendid work then being done by the
Pennsylvania Society for the Promotion of Manufactures and
Useful Arts, and paid tribute in these words:
"It may con
fidently be affirmed, that there is scarcely any thing which
has been devised, better calculated to excite a general spirit
of improvement, than the institutions of this nature. They are
truly invaluable." He went on to urge that an auxiliary agency
of Government be formed to assist and supplement available
private resources in the promotion of our arts, agriculture,
manufacture, and commerce.
I could not help but think, when I accepted this speaking
invitation, what a real thrill it would have been if Secretary
Hamilton had been privileged to meet the members of your modern
day planning organization.
93
- 3 ■While state p l a n n i n g a nd d e v e l o p m e n t is as old as A m e r i c a
itself, it ifc a f&ifrly n e w d e v e l o p m e n t for it to be c o n s c i o u s l y
i n c o r p o r a t e d ihto the f u n c t i o n s of m o s t of our state g o v e r n
ments . The c o m p e l l i n g nee d for state p l a n n i n g ag e n c i e s such
as y o u r e p r e s e n t g r e w out of crisis in our n a t i o n a l economy.
Most of us w o u l d like to erase from our m e m o r i e s those d a r k
d e p r e s s i o n days in the e a r l y *3 0 's, but we m u s t n e v e r forget
some of the lessons w h i c h t hey taught us.
C e r t a i n l y one great
lesson was the n e e d in a c o m p l e x e c o n o m y for i n t e g r a t e d s t a t e
wide planning.
Y o u r n a t i o n a l a s s o c i a t i o n was formed i n a n e q u a l l y c r i t i c a l
period i n our h i s t o r y -- at a time w h e n our c o u n t r y faced, the
crucial test f o l l o w i n g W o r l d W a r II of w h e t h e r it could convert
a t r e m e n d o u s l y e x p a n d e d w a r t i m e p r o d u c t i v e m a c h i n e into p r o
gressive p e a c e t i m e pursuits.
W e h ave found the a n s w e r in the
lifetime of y o u r organ i z a t i o n .
We have n ot o n l y b e e n able to
m a i n t a i n the p r o d u c t i o n gains m a d e in wartime, bu t we h a v e
con s t a n t l y b e e n i n c r e a s i n g our pr o d u c t i v i t y .
You, as wel l as our Nation, c an be p r o u d of the m o s t
important role our state p l a n n i n g a nd d e v e l o p m e n t a g e n c i e s h a v e
played in m e e t i n g the u n p r e c e d e n t e d c h a l l e n g e s of these pas t
five y e a r s . W h i l e we h a v e always h a d a c e r t a i n a m o u n t of
rivalry a m o n g our states -- and eac h of us is the first to e x t o l
the v i r tues of h is o w n p a r t i c u l a r state — we a l s o k n o w that the
p r o s p e r i t y of e a c h of our states is d e p e n d e n t u p o n the s t a b i l i t y
of our N a t i o n as a w h o l e .
I n j o i ning t o g e t h e r In n a t i o n a l a s s o c i a t i o n y o u p e o p l e h a v e
set aside t r a d i t i o n a l state r i v a l r i e s to share y o u r e x p e r i e n c e s
and to p l a n together.
F o r four years y o u h a v e b e e n c o m i n g to
W a s h i n g t o n to a t t e n d these t e c h n i c a l seminars, h e l d at y o u r
request, to a c q u a i n t y o u r s e l v e s w i t h n a t i o n a l p r o g r a m s a nd
policies, and to find out h o w y o u r state a g e n c i e s c an best
design t h eir p l a n n i n g b l u e p r i n t s to m e e t n a t i o n a l as w e l l as
state needs.
To me it is a fine d e m o n s t r a t i o n of the type of
unity of a c t i o n a nd p u r p o s e w h i c h has m a d e A m e r i c a the great
Nation —
the l e a d e r of n a t i o n s -- that she is today.
U n f o r t u n a t e l y , however, In today's c r i t i c a l w o r l d s i t u a t i o n
we are no long e r b e i n g p e r m i t t e d to d e v o t e our ful l r e s o u r c e s
and energies t o w a r d p u r p o s e f u l h u m a n i t a r i a n b u i lding.
The
international events w h i c h h a v e t r a n s p i r e d just since y our
a s s o c i a t i o n h e l d its f i fth a n n u a l me e t i n g , in M a y of this year,
nave called for a complete r e a p p r a i s a l an d s u b s t a n t i a l r e v i s i o n
of all our p r o grams.
W e h ave come face to face w i t h a n e n e m y
94
- 4 -
who a d m i t s no creed exce p t that "Might m a k e s right."
America
has n e v e r h a d a n a p p e t i t e for war.
W e do not now.
B u t we w i l l
never stand i d l y by a nd let a n e n e m y wip e out the f r e edoms we
cherish or a w a y of life that spells h o p e for a l l free pe o p l e s
of the w o r l d .
M u c h of our n a t i o n a l p r o d u c t i o n m u s t n e c e s s a r i l y n o w be
d i v erted to a r m a m e n t a nd o t her d e f e n s e p u r poses.
A n d we w i l l
u n d o u b t e d l y h a v e to s u b s t a n t i a l l y in c r e a s e the p r o p o r t i o n w h i c h
goes to n a t i o n a l d e f e n s e in the m o n t h s ahead.
F o r u n t i l all
nations are w i l l i n g to sit d o w n a n d a d j u s t t h e i r d i f f e r e n c e s
amicably, we m u s t be p r e p a r e d to m e e t a g g r e s s i o n w i t h g r e a t e r
military m i g h t .
The m o r e our p r o d u c t i o n is d i v e r t e d to d e f e n s e purposes,
the less there w i l l be a v a i l a b l e for c i v i l i a n d e v e l o p m e n t
programs, a n d we m u s t m a k e our p l ans a c c o r d i n g l y .
The de f e n s e
p r o d u c t i o n job that lies a h e a d is a t r e m e n d o u s o n e . F o r t u n a t e l y
it is one that we are b e t t e r e q u i p p e d to h a n d l e t h a n at a n y
previous time in our hi s t o r y .
The n e w s c i e n t i f i c disc o v e r i e s ,
new i n d u s t r i a l m a t e r i a l s a nd n e w p r o d u c t i o n techniques, w h i c h
have b e e n d e v e l o p e d a nd a p p l i e d in r e c e n t years, h a v e g i v e n
a great i m p etus to p r o d u c t i o n effi c i e n c y .
In a record program
of m o d e r n i z a t i o n , p r i v a t e b u s i n e s s a l one h as spent over $10 0
billion for n e w p l a n t and e q u i p m e n t in the y e ars since the war.
Agriculture, in addition, h a s spent close to $ 20 b i l l i o n for
new m a c h i n e r y a nd e q u i p m e n t to in c r e a s e f arm o u t p u t .
I shall not p r e s u m e to d i s c u s s p a r t i c u l a r p r o d u c t i o n
programs, or h o w y o u r a g e n c i e s c an best d i r e c t t h e i r ef f o r t s to
assist in m e e t i n g our n a t i o n a l needs, for these are m a t t e r s w h i c h
are b e i n g t a k e n up i n y o u r s e m inar p a n e l s . B u t I s h ould like
to take a f ew m i n u t e s to d i s c u s s a n e q u a l l y i m p o r t a n t r e q u i s i t e
in the p r o t e c t i o n of our freedoms, a n d that is the p r e s e r v a t i o n
of the e c o n o m i c i n t e g r i t y of our c o u n t r y w h i l e m e e t i n g our
enlarged d e f e n s e r e q u i r e m e n t s .
F o r unless we insure the
soundness of o ur d o m e s t i c economy, the goals of our e n e m y w i l l
be a c h i e v e d as s u r e l y as if we w ere c o n q u e r e d on w o r l d
battlefronts.
E v e n if the f i g h t i n g in K o r e a w e r e s u d d e n l y to end, it
would be n e c e s s a r y for m a n y y e ars to come to spend h u g e sums on
defense^-- h o w m u c h we c a n not n o w tell.
Congress has already
appro p r i a t e d a p p r o x i m a t e l y $3 0 b i l l i o n for d e f e n s e for the
current f i s c a l year.
This a m o u n t seems c e r t a i n to be b o o s t e d
subst a n t i a l l y b e f o r e the f i scal y e a r is over.
5
95
While there seems to be widespread agreement that defense
expenditures should be paid for as we go -- that we should not
add further to the public debt -- I do not believe that it is
fully appreciated how large our tax increases will have to be
to achieve this goal.
The Revenue Act of 1950 is only a step
in this direction.
I sincerely hope that Congress will vote
additional taxes which, together with the recently enacted tax
measures, will produce enough revenue to finance all of our
expanded n e e d s .
In view of the lag between Government appropriations and
expenditures, it will be some time before the Federal budget
fully reflects the increased cost of the military program.
Meanwhile, the recent increase in taxes, reductions in other
expenditures, and high levels of business will help us materially
in bringing the budget more closely into balance.
But even if we are able to keep our budget in good order,
the rebuilding of a strong military establishment cannot be
superimposed on our present full-scale civilian production
without creating various strains and shortages.
A major task
will be to keep our economy on solidly-cemented foundation stones
A price inflation would not only undermine our current strength it would threaten serious consequences to incomes and employment
in later y e a r s .
The job that lies ahead in this field is not alone one for
Government.
Strong national leadership is, of course, demanded,
but no measures which the Government may take can be truly
effective without the wholehearted cooperation of every group
and every active citizen in our Nation.
Government restrictions on consumer and real estate credit
that have already been put into effect, and other restraints
provided in the Defense Production Act of 1950* together with
the recent increases, in income taxes on individuals and
corporations, will act as a partial brake on excessive spending.
But in the final analysis, the truly effective brake on
inflationary forces will only come when all our individual con
sumers, businessmen, workers and employers exercise selfrestraint and put aside personal interests to work together in
common purpose.
It is particularly important at this time that the income
which is created by our expanded productive efforts be saved
instead of thrown into the spending stream to push up prices.
And there is no more direct anti-inflationary effort that in
dividual Americans can make than to put their increased incomes
into savings.
96
-
6
-
It was m o n e y s a v e d - d u r i n g W o r l d W a r II that a s s i s t e d
m a t e r i a l l y in h o l d i n g d o w n w a r t i m e i n f l a t i o n a r y p r e s s u r e s i n
those years.
A n d it was this h u g e f i n a n c i a l r e s e r v e w h i c h e a s e d
to a large e x t e n t b u s i n e s s r e c o n v e r s i o n s in the p o s t w a r years.
Just so, the m o n e y saved in today's c r i t i c a l d e f e n s e p e r i o d w i l l
assure a stable e c o n o m y that w i l l r e t u r n us to sound p e a c e t i m e
p r o s p e r i t y a f t e r the p r e s e n t e m e r g e n c y is over.
I a m p e r s o n a l l y v e r y p r o u d of the p a r t our U n i t e d States
Savings B o n d P r o g r a m p l ays i n p r o m o t i n g t h rift a m o n g all
A m e r i c a n s . W i t h its em p h a s i s on m o r e c a r e f u l p l a n n i n g of i n
dividual e x p e n d i t u r e s and g r e a t e r i n d i v i d u a l savings, it is the
very c o r n e r s t o n e of our ef f o r t s to p r o t e c t the f i n a n c i a l h e a l t h
of our Nation.
M o r eover, it is a p r o g r a m w h i c h e n a bles all of
our p e o p l e to share in the r e s p o n s i b i l i t i e s of this N a t i o n w h i l e
at the same time p r o v i d i n g for their o w n p e r s o n a l future security.
N e v e r in our h i s t o r y h as the n e e d b e e n g r e a t e r for n a t i o n
wide t e a m w o r k o n the part of all A m e r i c a n s . N o r h a v e the stakes
ever b e e n h i g h e r . I n our b a t t l e for the p r e s e r v a t i o n of
freedom, we are f o r t u n a t e to be b l e s s e d w i t h m u c h of the w o r l d ' s
greatest m a t e r i a l r e s o urces.
B u t we m u s t n e v e r f o r g o t that our
greatest s t r e n g t h comes f r o m our h u m a n r e s o u r c e s -- f r o m the
cooperative e f f o r t s of a n a t i o n of i n d i v i d u a l s u n i t e d In
de t e r m i n a t i o n to p r o t e c t our A m e r i c a n insti t u t i o n s , a nd u n i t e d
with other free p e o p l e s to w i d e n the a r e a i n w h i c h m e n c an live
witnout f e a r .
N o r m u s t we e v e r forget for a n i n s tant that ours is a n a t i o n
m w h ich we are p r i v i l e g e d to w o r k t o g e t h e r -- n ot for the
autocracy of the few, but for the a d v a n c e m e n t and w e l l - b e i n g of
all our p e o p l e a nd the freedoms we cherish.
It h as b e e n a n h o n o r
tor me to a p p e a r tonight b e f o r e this g r oup of d e v o t e d p u b l i c
servants w h o are d i r e c t i n g their talents a n d en e r g i e s t o ward
assuring the s u c c e s s f u l a c c o m p l i s h m e n t of this great cause.
0 O0
TREASURY DEPARTMENT
Washington
97
Statement of Secretary Snyder before
the Committee on Ways and Means
November 15, 1950
I am glad to accept your invitation to appear here today as
your Committee undertakes to carry out the Congressional mandate
that you prepare a profits tax bill as,quickly as practicable« As
you know, the president has recommended that you set the revenue
objective of this legislation at $4 billion«
The task of preparing this legislation quickly is unusually
difficult« Since time is short, I am particularly glad to have an
opportunity at the beginning of your deliberations to offer you the
technical facilities of the Treasury Department,
The world situation which compels us once: again to make a
defense effort is not one which any of us can face with equanimity©
We are a peaceful people. Our only objective is an opportunity to
;join with others in a prosperity based on the association of free
individuals and free nations®
Tha_t was our objectives that is our objectives that will remain
our objective® But now we are faced with a grim reality« We arc
faced with a menace which can destroy the way of life we have buoc u
for ourselves* unless we make a determined effort to resist it.
It could destroy the products of the magnificent direction of
American management» It could destroy the vast contribution of labor
to building up this Nation* And it could blot out, as if they had
never existed, the free institutions which have made all of these
things possible.
To meet this threat, we are building our defenses so that free
peoples everywhere will not live in terror of unprovoked assaults,
such as that in Korea*
This will be a costly process. It will require a significant
part of the fruits of our managerial talent, our labor, our raw
materials, and our technical resources« Moreover, this must be
achieved without weakening our economy. Vie must blend together
our defense needs and our domestic objective of maintaining a strong
economic system, so that both will progress together#
This goal has an important bearing on our current fiscal policy#
It has particular meaning to me as Secretary of the Treasury, The
debt of the United States Government — one-half the debt
S-2509
- 2 of the entire country, both public and private •— is interwoven
throughout the financial fabric of the entire Nation* It represents
an important part of the assets of our financial institutions^ of
our business concerns, and of the investment funds of individuals#
Under these circumstances£ the first essential of a sound
fiscal program is adequate tax revalue to give maximum protection
to the financial position of the Government# This means enough
revenue to pay for the Governments requirementso
There is no need to labor this point before your Committee,
The energetic and determined manner in which the Chairman and
members of this Consnittee and the Senate finance Committee responded
this summer to the need for action on the first installment of the
I95O tax program necessitated by the aggression in Korea, is eloquent
testimony of your appreciation of the problem before us#
It is in this spirit that the president recommended the prompt
enactment of additional revenue legislation to complete the 1950
interim tax program# The President has a threefold objective:
first, to contribute to meeting the increased cost of defense;
second, to help check inflationary pressures and enable the Gov-*
ernment to maintain a strong financial position; and third, to
tax the high profits resulting from the defense program#
The uncertainty of the amount of national security expenditures
makes it difficult to forecast the budgetary outlook for this
fiscal year as a whole# A conservative estimate indicates that
budget expenditures for this fiscal year will amount to about
$45 billion# The present tax system, including the tax increases
under the Revenue Act of 1950, is ejected to produce $43 billion©
This indicates a budgetary deficit for this fiscal year of about
$2 billion#
As the President has stated, the amount of additional expenditures
which will be required for military security is necessarily difficult to
estimate, The direction of these expenditures, however, is clear*
Since commitments and obligations are now being made at a rate
considerably greater than current expenditures, and since many items
of military procurement have to be ordered long in advance of
deliveries, expenditures for fiscal year 1952 and later years will
be substantially above current levels* The magnitude of the
revenues which will necessarily be needed to meet these expenditures
on a pay-as-you-go basis is indeed sobering#
98
- 3 ~
In considering the
revenue required, we should not
be misled by the fact that,
the budget deficit is
moderate. Since an important pfgrfc of defense preparations entail
production operations extending over two, three, or even more
years, it is inevitable that obligations incurred now will be fblly
reflected in expenditures only at s&m time in the future®
The necessity for focusing att#$#don on future rather than
present expenditure levels is
rtfcnsl-arly important in connection
with the Presidents objective of pr«enting inflation®
Under present conditions, expenditures for defense exert an
inflationary pressure on the economy substantially in advance of
the actual disbursement of .funds® Demands for materials, for labor,
and for capital outlays occur very soon after the Government contracts
are let, well in advance of actual production, and consequently often
far in advance of the time when the Government pays for that produce
tion. This explains in part why scarcities and inflationary pressures
have developed even though a large portion of the increased defense
funds appropriated by the Congress after Korea have not yet been
reflected in Government- expenditures®
The prevention of inflation is an essential element of our
defense effort, A price and profits spiral would increase the cost
of vitally needed defense materials, impose an inflationary burden
on those -earning relatively fixed incomes or depending upon past
savings and, finally, divert the efforts of labor and management
from the basic job of production® Private enterprise has much to
preserve. The Government by prudent fiscal measures can encourage
those who desire to concentrate, on production®
To emphasize the importance of sound defense financing, I ask
you gentlemen to consider my position as the official responsible
for the credit of our Government® You know the gravity with which
I view the responsibility entailed in managing a public debt which
amounted to almost $270 billion when I came to the Treasury more
than four years ago. You know that it has not been possible t©
reduce this debt as much as would have been desirable. It is now
approximately $257 billion® I cannot emphasize too strongly my
concern over the effect which the financing of the defense program
will have on this problem®
-4The President1s third objective, the prevention of profiteering
from the defense program, is one about which there can be no dis**
agreement» This goes to th.& very li^art of the question of maintain»ing our free enterprise System * It is well known that profits grow
far more rapidly than other sources of income when production is
forced to national capacity» An adequate tax policy can contribute
to the prevention of profiteering, wit hout interfermg^w:Lth the
incentives which are e®#enfi^l to continued increases in production*
In this connection, it is important to distinguish between
what may be called profits of the producers of defense materials
and profits arising from the pressures of the defense program*
It is sometimes suggested 'that special profits taxation is
unnecessary because the same objective can be obtained by
renegotiation of Government contracts* Although renegotiation
and profits taxation are interdependent and closely related, they
are directed, of course, toward different objectives« One deals
with fair pricing under Government contracts; the other with the
taxation of corporate earnings during the defense period©
Renegotiation does not reduce the task of profits taxation
in those segments of the economy where the defense program in-»
directly increases the demand for goods and services and thus
increases profits« If, for example, the defense program absorbs
the facilities of one manufacturer thereby increasing civilian
demand for the products of another manufacturer of similar
articles, it has contributed to the profits of the producer of.
civilian goods as certainly as to the profits of the producer
of military supplies«
Accordingly, in devising taxes for dealing with profits
arising from the defense program, it is necessary to consider
the whole picture« Except in the case of individual defense
contracts, it is impossible to determine the specific factors
contributing to the changes in profits of a particular corporation
or even of an industry© Future changes in the over-all level
of profits, however, probably can be attributed largely to the
impact of the defense program©
The rising trend of corporation earnings, particularly
as reflected in recent financial reports, constitutes one of
the bases of the Presidents recommendation that substantial
additional revenue be obtained from profits taxation©
•
99
- 5 Corporation Profits
1
"
-"
"■ ■
■' '■'
T/ihen this country responded to the Korean crisis with the
only answer that was appropriate, the economy was nearing the
record 1948 production level. Gross national product for the
second quarter of 1950 was at an annual rate of $270 billion
compared with less than $254 billion in the fourth quarter
of 1949* In the third quarter of this year, due to the impact
of the defense effort, it jumped sharply to a level of $282
billion and is continuing to rise rapidly«
Although all segments of the economy are enjoying
prosperity, the gains have been most striking in corporate
profits© As you know, total corporate profits during the four
years following World War II far exceeded any previous level©
This enabled corporations to pay dividends at record rates and
still reinvest substantial, earnings« Corporation profits during
the years 1946—49 averaged $29 billion before deduction of taxes®
This was more than five» times the 1936-39 average.
Chart 1 indicates that corporation profits for 1950 will
establish a new record* It is now estimated that corporation
profits before taxes for this year will total $37 billion,, or
$3 billion in excess of the peak year 1948©
Chart 2 shows the course of dividends and retained
earnings® In the prewar period, dividends amounted to about
$4 billion annually and retained earnings were very small©
Dividends were fairly stable during the war, but in 1946 began to
rise rapidly. This year they will reach $8®5 billion
more
than twice the prewar level,® Despite the record dividend
payments this year, retained earnings will equal the previous
record in 1948 ®
Charts 3 nnd 4 present the trend of corporate profits in
relation to the equity investment of corporations® The series
in Chart 3 ends in 1947, the latest year for which data from
tax returns are available. The general trend, however, is clear.
In 1947, the average rate of return on net worth of all corporations
with net income was 19 percent before income taxes or more than
double the prewar rate, After taxes, the 1947 rate of return
was substantially higher than in any of the wartime years«
- 6 The information from tax returns shown in Chart 3 is
supplemented for more recent years fbr manufacturing corpora
tions in Chart 4* For the period 1947-49> profits of this group*
after taxes* averaged 14*5 percent of net worth or almost two
and one-half times the 1936-39 average•
The detailed record indicates that all corporations have
not prospered to the same extent in recent years<,
/Chart 5 shows the rates of return on net worth before taxes
for selected industries in 1947» The returns range from a high
of 35 percent for the lumber industry to a low of 7 percent in
the communications industry. With the principal exception of
the transportation and communications industries, the rates of
return were well above 10 percent.
Chart 6 shows the variations in the earnings experience of
manufacturing firms of different sizes. For small- and medium-sized
manufacturing corporations* rates of return on net worth decreased
in 1948 and 1949* In contrast* the very largest manufacturing
corporations maintained a very high rate of return throughout
most of the postwar period. In 1950* the rates'of return for
corporations of all sizes apparently increased very substantially*
(The data underlying the charts are presented in the attached
Tables 1-6).
In view of this earnings record* there can be little doubt
that* if properly distributed* $4 billion of additional taxes
would leave corporations* in the aggregate* with high earnings,
and a high rate of return on investment*
Alternative Tax Methods
In appraising alternative tax methods* it is necessary
to understand at the outset that defense financing calls for more
than a tax on earnings considered excessive by recent high, earning
standards« It requires special regard both for the unusual profits
that may develop under the defense program and for the high profit
levels which have been prevailing. I encompass all of this in the
taxation of defense profits*
2*
100
?— Y ■**•
We have given careful' study to alternative ways of obtaining
the President’s revenue'objective.through the taxation of corporate
profits« The alternatives (Explored range from a uniform percentage
increase in the rate of the regular corporation ircome tax to
various forms of.war. profits and excess profits taxation, and
combinations of these methods•
One conclusion which stands' out clearly is the inadvisability
of placing the burden of the President’s revenue' obj ectivs on the
regular corporation income tax»
The basic issue is whether the additional tax should be dis
tributed on all corporations regardless of their share in the.
present prosperity or whether taxation should be more selective#
As vías shown in Chart 6, there .is substantial variation in the
increased profitability of small and large corporations« There
are equally important variations among industries and among firms
within identical industries« As happened during the last war, these
variations will undoubtedly increase imder-the abnormal conditions
ahead of us*
“ '- ’
’ e J
In a year when corporation pro lit s total about $4-0 billion,
each one percentage point increase, in the corporation rate produces
about $340 million® In other words, to raise $4 billion from an
increase in the corporation income tax rate would require boosting
the present 45wpercent rate to about 57 percent« The raising of
$4 billion additional revenue, from a flat increase in the corporation
income tax would accentuate the uneven effects which the defense
program will have throughout the business world* It would impose
particular hardship on corporations whos$ profits are declining©
It will be said, of course, that the high profits of businesses
which fare unusually well through direct participation in the
defense program could be controlled by renegotiation of Government
contracts« Undoubtedly this will do much to prevent profiteering,
since it can be relied upon to skim off a large part of the excessive
profits of firms directly connected with defense industries©
To say that renegotiation would level off profits among indus
tries and corporations and thus’justify omission of a defense
profits tax from the tax system, however, ignores most of the
war-profits, problem« High earnings are not necessarily concentrated
in industries producing military materials.. Moreover, the record of
the last war shows that war contractors earned large excess profits
even after renegotiation«
* I
8
Thé extensive support given the principle of excess profits
taxation by this Congress whan it considered the interim tax bill
suggests that the need. £#r à special tax is recognized by the
Congress«,
The taxation of profits, however, is not without its
difficulties. The issu« «seaps down to one of weighing these
difficulties against this inequities involved in substantial increases
in the taxes on the profita of all corporations. Many of the diffi
culties, however, can be
ed by benefitting from past experience
to increase equity among taxpayers and to reduce the burden of tax
administration«.
In searching for the most satisfactory approach to this problem,
the Department and the Staff of the Joint Committee have examined a
variety of possibilities« The Treasury Staff has analyzed the
experience of a large number of corporations under the last excess
profits tax and examined the impact of different approaches on
various types of corporations*
These investigations suggest that in developing a basis for
profits taxation it will be necessary to rely largely on the past
earnings experience of corporations and to look to the rate of
return on invested capital as a guide for taxation of those
corporations with unsatisfactory earnings experience*
If this approach is adopted, consideration should be given to
the fundamental changes in the World War XI tax that seem most
desirable, particularly from the point of view of its impact on
specific firms and specific industries under current conditions*
World War II Excess Profits Tax
; A brief review of the World War II excess profits tax may be
helpful as a setting for the discussion of the changes suggested
for your consideration*
The wartime tax excluded most small corporations by providing
a specific exemption of $10,000* This was in addition to the excess
profits credit allowed each corporation* Corporations had the
choice of computing their credit on the basis.of 95 percent of
the average earnings for the base period years 1936-39, or.on the
basis of a percentage of invested capital* The rates allowed on
invested capital varied with the amount of capital. There, were
numerous exceptions to these general rules designed to relieve
hardship*
101
_ 9,
During World War II, the maximum number of corporations subject
to excess profits tax was 68,000 in 1943, or about a quarter of
all corporations subject to income tax for that year*» Because of
the relatively low rate of earnings on capital experienced in the
base period years, little more than a third (35 percent) of the
corporations subject to excess pie fits tax elected the base period
earnings credit in that year« However, the excess profits tax
of these corporations accounted for 54 percent of the total tax«
After 1943 the tax was imposed at a flat rate of 95 percent,
but provision was made for a postwar credit of 10 percent which
reduced the net tax rate to 85*5 percent* The over-all average
effective rate, before the postwar credit, was 80 percent* The
net yield, or the amount by which the receipts from this tax
exceeded the .amount that would have been raised from the corpora
tion income tax alone, was about $16 billion. (Detailed statisti
cal data on the wartime- tax are provided in Exhibit 1«)
The ■Dase Period Darnings Credit
The recent profit experience of corporations shows that in
the case of most corporations an earnings credit based on recent
years would provide a reasonable method of arriving at defense
profits* This represents an important change frota the situation
when the World War II law was formulated* In view of the rela
tively lower level of profits in the years 1936-1939, the majority
of corporations secured a higher excess profits credit under
the invested capital method than under the base period earnings
method,
Tn view of the dynamic expansion of the economy in recent
times, only an up-to-date period will provide an adequate, measure
of defense profits* The 1936-1939 base period of the previous law
cannot be restored because it relates to a period when gross national
product was only 25 percent of the present level and total profits
only 13 percent» At least 45 percent of existing corporations
have been organized since that tin®* Profit levels for the war
years are also obsolete in view of the expansion in the economy*
Moreover, the profits of different industries and corporations at
that time reflected highly abnormal relationships*
-
10
-
The fact that most corporations would now rely upon a base
period earnings credit is an important consideration in selecting
a base period which would achieve the greatest equity and minimize
the need for special adjustments*
The years since the war, 1946-1949, afford a broad and^repre
sentative basis for appraising the; earnings performance of in
dividual corporations. It is well recognized, of course, that
no one- period provides for eveiy business an entirely satisfactory
measure of normal profits* However, these four years cover an
exceptional period of sustained prosperity, giving an unusually
large proportion of corporations an opport■’
unity to earn hig i
profitSo
The inclusion of the year 1950 in the base period should be
rejected since it already reflects to an important degree the
impact of defense expenditures* To a lesser degree, this objection
is" applicable to all recent years when governmental expenditures
for defense and foreign aid have been substantial*
Although the profit experience of the years 1946-49 can
serve as a general guide to normal earnings, irregularities did
exist. The profits of some industries were d e p r e s s e d ^ 194o
because of reconversion from war to peacetime production*
industries earned substantially higher profits in 1946 than later
years (Table 7)* Omission of 1946 from the hs.se period would,
penalize these firms and industries for their prompt fulfillment
of consumer needs following the war*
The fairest method of recognizing these differences would be
to allow the taxpayer to use the best three of the four years. This
would be an improvement over the method used in World War II, which
allowed a taxpayer with a bad year to substitute for his single
lowest year, 75 percent of the average income of the remaining three
years. The suggested exclusion of the poorest year would treat
this type of case more generously*
The proposed treatment would increase the average base period
earnings by 6-1/4 percent for those who under the old law would have
qualified for an adjustment under the 75-percent rule* It would
also be advantageous to a number of taxpayers whoso income in the
lowest year is more than 75 percent of the average of the remaining
102
- ii years and who obtained no relief .under the wartime rule. For example,
a corporation with earnings of $10 million in the lowest year and $70,
$30,and $40 million in the other three years would use the average of
the three highest years or $30 million* The wartime rule would have
substituted 75 percent of this $30 million average, or $22»5 million,
for the lowest year© This would result in a credit of $28*1 million,
or nearly $2 million less than under the proposal to average the best
three years*
It should be noted that such a change would necessarily reduce
the tax base since it would liberalize the credit for some corpora
tions without reducing the credit for others« However, it would be
more effective in minimizing possible grievances and relief claims*
Our studies also suggest the desirability of liberalizing the
treatment of corporations with deficits in some of the base period
years* This would be of considerable importance to some taxpayers,
and would reduce the number of taxpayers seeking general relief*
Another provision the Committee may wish to consider is the
treatment of corporations which were increasing their capacity to
earn during the base period and, in the normal course of events,
might be expected to continue growing* In World War II, this type
of situation- was handled by what is known as the growth formula*
with the elimination of the taxpayer*s worst year under the proposed
option to select the three best years, less need remains for this
adjustment* However, it may be necessary to matie some allowance for
cases where substantial investment in the latter part of the base
period is not adequately reflected in base period profits*
Invested Capital Credit
Due to the large increase in the level of profits since the
1936-39 period an invested capital credit would be used less
frequently in the present, situation than during the last war* At
that time this credit carried the burden of protecting many
industries that had been operating under depressed conditions prior
to the war*
Provision for an equitable invested capital credit is still
essential as a relief measure* It would apply in three principal
types of situations* First, certain industries' may earn a low
rate of return on capital which though high in relation to preceding
earnings is low by generally accepted standards $ second, there are
industries or individual firms that failed to participate in the
general prosperity during the proposed base period years ; third,
it is necessary to provide a basis for determining the tax status
of new businesses*
-
12
To meet present requirements, the invested capital credit
requires substantial revision*
Rate on invested capital
No single rate of return on invested capital will allow for
the varied conditions peculiar to'different businesses * The
statutory rates must aim at the best general level in the light
of existing circumstances# When the World War II tax was initiated,
the invested capital credit was based on a flat allowance of 8
percent# It developed that this rate exempted all or most of the
large corporations in a number of basic industries and therefore
in subsequent Acts the Congress reduced the allowance for larger
corporations* The principle of varying the allowance according to
size is believed to be sound and should be continued«
The invested capital allowances in the last version of the
W
orld War II tax appear, to be low for present conditions.*
These allowances were t
On the.fir st #5 million of invested capital •—
8 percent
On the next $3 million
- 6 percent
On the amount of invested capital above
$10 million
« » 5 percent
Under these rates few corporations would now find the invested
capital option useful# Unless these rates are increased the al
ternative credit based on invested capital would not provide a
significant measure of reliefo
As indicated earlier in my statement, the average rate of
return on equity capital for manufacturing corporations, before
income tax* has more than doubled since the 1936-39 period* In
1939 nearly a third of the manufacturing companies had a return
of. less than 5 percent on equity capital* 3y 1947 the proportion
of such firms had been reduced to about one-tenth (Table 8 )* It
is clear that the use of the statutory rates of return allowed at
the termination of the World War II tax would discriminate against
companies with low income in the base period because the bulk of
corporations have enjoyed relatively much higher rates of return#
103
- 13 In revising the allowances under the invested capital credit,
a balance must be found between two considerations which would
lead to widely different rates© The first requires a rate suffi
ciently high to protect normal growth of new business and firms
which normally earn relatively higher rates of return« If the
invested capital credit is too low to be available to any substan
tial proportion of corporations falling in these categories, more
corporations will be forced to have recourse /to general relief in
obtaining a reasonable minimum earnings base exempted from profits
taxation« In the absence of an adequate invested capital credit,
industries of great importance in the defense effort might be
adversely affected«
At the same time it is also important to avoid invested capital
allowances so high that industries characteristically having a
relatively low rate of return might never become subject to defense
profits taxation regardless of the expansion in their profits» Such a
situation might arise in heavily capitalized industries© It m^*
also affect those industries in which favorable treatment under the
income tax law results in a rate of return computed for income
tax much below the rate of return actually earned« Unless the
invested capital credit is adjusted to the realities of the
situation, large windfalls might accrue to heavily capitalized
industries»
Careful studies of the effect of different possible allow
ances under the invested capital credit, suggest that the
allowances provided at the end of World War II should be increased
by about one—fourth to one-third« The principle of differentiation
in allowances according to the size of the invested capital of a
corporation should be retained. With this differentiation, an
increased invested capital credit will afford effective relief
for those industries and corporations that have lagged in the general
expansion of earnings and will adequately protect existing investment
in most cases,*
Borrowed capital allowance
The World War II allowance, for borrowed capital should be
basically revised« That allowance provided for including 50
percent of borrowed capital in invested capital with a correspond
ing disallowance of 50 percent of the deduction for interest paid*
- 14 -r
An allowance for borrowed capital gives recognition to the
risk involved where the earnings on equity capital are subject to
interest■payments- on debt* the amount of earnings remaining for
equity capital under such conditions is subject to wider fluctu
ations than where borrowed capital is not employed» In the interest
of equity*-however* a revision.of this, statutory allowance is required*
The World War II aUftgavuw. gave taxpayers the benefit of
one—half, the difference b^t^een the statutory rate- on equity
capital and the rate ‘of interest on borrowed capital* ’This favored
the larger corporations with well-established credit positions*
able to borrow at the lowest interest rates* Under the World War IIprovision*, •for example* a large company having an equity capital
allowance of 6 percent and borrowing a t .an-interest rate of 3 per
cent would have its excess profits credit- increased by one*>half ■
the difference between 6 percent and 3 percent* or lj percent of
the^amount of its borrowed capitala In contrast, a small corpo
ration, with;,a poor credit'rating borrowing at 7 percent could have
received a benefit equal to one^-half the difference between this
rate and the highest equity capital allowance of 8 percent* or only
2 of 1 percent on the borrowed capital« If its interest rate had
been more than 8 percent it would have been penalised*
This inequity would be removed by adopting an allowance for
borrowed capital proportionate to the interest Vat e © This would
give recognition to the fact that high interest rates generally
reflect greater risks To provide reasonable protection in these
cases* it is suggested that the invested capital credit be .increased
by about 25 to 35 percent of the amount of interest paid on borrowed
capital* and no reduction be made in the interest deduction© To
prevent abuse* themaximum allowance should be limited to 2 percent
of the borrowed capital in addition to the interest deduction*
In general* this revision would make the invested capital
credit more favorable to small corporations which must borrow at
higher rates of interest than tjh?se which can borrow on very favor
able terms*
104
15 Impaired capital
Under the World. War II law, invested capital included capital
and' surplus paid in to the company regardless of whether such
capital still existed or had previously been lost# It is well ;
known that a number of large corporations have at some time in
their histoiy experienced large losses of capital* The former law,
nevertheless, counted as existing capital much that had been lost
in remote periods* This treatment’created an inequity by giving
such corporations an important tax advantage over competing concerns
whose capital had not been impaired* This discrimination, often'
resting on accidental circumstances, might seriously affect new
corporations attempting to compete with those receiving such a
tax advantage#
_ ■
It is possible to remove this discrimination and yet give
proper recognition to temporary losses of capital by limiting the
allowance to capital impairment attributable to recent years*
New capital
Under the Ytforld War II tax, corporations using the invested
capital method were allowed a credit for new equity capital which
was 2$ percent larger than the credit allowed on old capital*
Corporations using the average base period earnings credit were
allowed a flat 8 percent on new capital* Increases in equity
capital arising from the reinvestment of earnings were granted
under the invested capital credit but not under the earnings
crédité
The provisions of the World War II law are in need of revi
sion* Otherwise most corporations, which will use the base
period earnings credit, would obtain no allowance for the re
investment of earnings* Such reinvestments have been at record
levels in recent years* Wide discrepancies would result if this
allowance depended upon the fortuitous shift of corporations
from the earnings credit to the invested capital credit* The
staff has assembled for your information data you will want to
consider in the alignment of these credits* I would prefer to
see recognition given to retained earnings in determining, both
the earnings and invested capital credits*
- 16
f
Minimum Credit in Lieu of Specific Exemption
Experience suggests that it is desirable to limit the applica
tion of the type of profits tax under consideration to taxpayers
with significant defense profits*
- The world War XI excess profits tax provided a $10,000
specific exemption for this purpose* , Several advantages would
be gained by replacing the specific exemption with a minimum
credit and increasing the amount to 125*000.
Whereas a specific exemption is granted to all corporations*
a minimum credit would apply only to those corporations with actual
credits below the minimum. For example* under the specific
exemption a corporation would not be subject to excess profits tax
until its earnings exceeded its credit by $10*000« Under a
minimum credit of $25*000 no corporation would be taxable unless
its net income exceeded $25 *000«
A minimum credit concentrates relief in the lower net income
brackets* since it can be utilized only by those firms whose
computed credits are
ss than $25*000. Thus, a $25,000 minimum
credit would provide a larger favorable area for small and ne?f
businesses and the auditing of tax returns for these corporations
would be greatly simplified* Moreover, the use of a minimum credit
would also reduce substantially the number of claims for relief
by small corporations« Such cases accounted for approximately a
quarter or 13,000 of the 54,000 relief claims filed under the
World War II tax, and for an even greater proportion of the litiga
tion under the World War II relief provisions« The elimination
of this administrative burden would be highly desirable«
Relief Provisions
The generally prosperous condition of the country during the
past five years, and the type of revisions outlined here would
enable taxpayers generally to establish a fair and reasonable base
for the measurement of defense profits* Although the need for
relief would be greatly reduced, abnormal cases would remain*
105
- 17 Equitable treatment in these cases is one of the most troublesome
problems encountered in "the administration 6t a defense ;
or excess
profits tax*
General tax provisions- must necessarily be drafted with
the typical firm in mind*/ Whether primary use is made of an ■
earnings standard or of an invested capital standard/ cases
will arise where- the tax might occasion serious hardship in the
absence of relief»
Although an earnings standard takes into account both
differences in risk and differences in operating efficiency as
reflected in past earnings,, it is inadequate for the new or
rapidly growing firm whose profit potentialities have not yet
been demonstrated* A similar problem arises where base period
earnings have been adversely affected by some abnormal or unusual
occurrence beyond the taxpayer's control*
The general relief provisions of World War IX specified in
considerable detail the circumstances under which taxpayers would
be entitled to relief* The law encouraged the filing of about
54,000 claims for relief and was difficult to administer* The
corporation seeking relief became the rule rather than the excep
tion*
The relief provisions should be revised to avoid extremes*
The objective should be to provide a fair measure of relief which
lends itself to reasonable administrative determination# New and
growing firms confronted•by risks which require a higher rate of
return on invested capital than that allowed by the main provisions
of the statute merit special attention* The records of the Bureau
of Internal Revenue and the Excess Profits Tax Council provide
guidance for the formulation of an appropriate general relief
provision* The staff has assembled extensive materials on this
subject for your consideration*
Tax Rate
The type of defense tax I have described must produce adequate
revenue without involving very high marginal rates qnd without
penalizing unduly corporations not sharing in the high level of
- - 18 «*
profits» Excessively high rates, tend to increase inflationary
pressures because they induce waste and inefficiency»,
In a situation short of total war and in the absence of com
prehensive economic controls, it is necessary to retain the economic
incentives of our private enterprise economy. Nonetbalsea., a
properly designed profits tax is essential, for a balanced antiinflation program since economic controls and higher taxes on
individuals would be unfair unless high corporate profits carry
their fair share of the tax load*
I believe you will agree that there would be little advantage,
if any, in adopting this new tax if its rates were only a few
percentage points higher than those of the regular corporation
income tax* Such a tax would impose additional burdens by way
of taxpayers* compliance and tax .administration which would be
warranted only if it produced significant amounts of revenue* At,
the same time, however, it’is also desirable to avoid rates as
high-as the 85'ir~percent -rate employed in the last wartime tax* If
under present conditions and in the absence of wartime production
motivation corporations, were allowed to retain only a small part
of any additional income they earn, they may -not be left with sufficient
incentive to maximize production» Under the present circumstances
a rate of around 75 parceob appears to be reasonable* This would
mean a differential tax of 30 percent over the regular ¿S-peryerit
corporation normal and surtax*
The World War II excess profits tax started with graduated
rates. In 194-2, however, graduation was eliminated and a flat
over-all rate on all excess profits was substituted* It is our
tentative conclusion.that under present conditions graduation
would not be necessary* It* would tend to increase the top
marginal rate, if the revenue objective is to be obtained, and
is therefore likely to have less desirable incentive effects
than a flat rate.
To achieve the ^resident?s revenue objective with a tax
of the type I have described, and with a 75-percent tax rate, it
would be necessary to reduce base period earnings by 25 percent
for purposes of computing the credit* This cutback" of the base
period to 75 percent may be justified on grounds similar to those
106
- 3.9 which underlay the cutback to 95 percent in the World War II tax«
It was the view of Congress then that firms in a position to use
an earnings credit would, in. effect , obtain an allowance equal
to very high rates of return on their invested capital.and would
thus enjoy a big advantage over those restricted to. the invested
capital base# This advantage is even greater nov<r than it was under
the old lawo The fact that some defense profits pre-dated. Korea
also supports some reduction in the credit based on pre—1950 earnings*
Jt must be recognized that if the base period earnings credit
is reduced, this tax will apply to some firms whose current profits
are no higher than the average of their best three base-period years.
For these firms the tax increase resulting from the 25-percent
reduction in the credit will be equivalent to a 7^ percentage poin
increase in the corporate rate« However, the over-all distribution
of tax burdens under this profits tax will differ from an equal
general corporate income tax rate increase* Firms whose earnings
had declined below 75 percent of the three-year average would pay
none of the increase* Firms with earnings between 75 and 100
percent of this average would pay only a small portion of a flat
increase. Finally, firms whose earnings had actually increased
over this average would pay more than 7^ percent additional tax
on their entire income, depending on how much their profits
increased*
I am limiting my comments to the more general features of the
tax under consideration* The suggestions I have made for revision
in the World War II tax, if that approach is adopted, are limited
to the essentials underlying the concept of the tax* Since time
during this session is short, you will doubtless want to confine
this year1s legislation to basic essentials, deferring consideration
of provisions having more restricted application to next year«
As you know, the fair application of this type of tax requires
a wide variety of detailed provisions* During the past several
months the staff has assembled data bearing on the items I have
mentioned and on many others* These investigations are going
forward in the expectation that as your hearings and deliberations
nroceed you will have need for these materials* The staff will be
prepared to present them at your convenience.
-
20
-
•a- -w
Mindful of this Committee*s immediate response to
the need for interim tax legislation earlier this year, X am con
fident that despite the complexities of profits taxation you will
carry out the Congressional mandate in the short time available*
This will round out the 1950 interim tax program and bring the
corporation profits taxes into better alignment with the personal
income tax* It will combat profiteering and, by narrowing the gap
between expenditures, and revenues, will contribute to the soundness
of the Government5s finances and to the progress of the mobilization
effort*
0O 0
-3-
any State, or any of the possessions of the United States, or by any local tax
ing 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 L£ and 117 (a) (1) of the Internal Revenue Code,
as amended by Section llj? 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 in
clude in his income tax return only the difference between the price paid for
such bills, whether on original issue or on subsequent purchase, and the amount
actually received either upon sale or redemption at maturity during the taxable
\
year for which the return is made, as ordinary gain or loss.
Treasury Department Circular No. Ul8, as amended, and this notice, prescribe
the terms of the Treasury bills and govern the conditions of their issue.
of the circular may be obtained from ary Federal Reserve Bank or Branch.
Copies
-
2
-
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 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 acceptance or rejection thereof.
The Secretarjr 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 frcm 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
November 2k,
1950
s 3-n cash or other immediately avail-j
SE
able funds or in a like face amount of Treasury bills maturing
Cash and exchange tenders will receive equal treatment.
November 2k,
19$0|
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
or supplementary thereto.
gift
amendatory
The bills shall be subject to estate, inheritance,
or other excise taxes, whether Federal or State, but shall be exempt fro®
all taxation now or hereafter imposed on the principal or interest thereof by
fSdasbbfcfcrabc
TRSAS9R1 DEPARTMENT
?jiaskington
P
FOR RELEASE, MORNING NEWSPAPERS,
Thursday. November 16 . 1Q5Q--- •
aSalc
®
The Secretary of the Treasury, by this public notice, invites tenders for
ft 1 . 1 0 0 ^ . 0 0 0 , or thereabouts, of
^
-day Treasuzy bills, for cash and
in exchange for Treasury bills maturing November 24, 1950--- > to be issued on
B0C
a discount basis under competitive and non-competitive bidding as hereinafter
8
provided.
The bills of this series will be dated November 2», 1250----- > and
vrrn mature February 23, 1951
, when the face amount will be payable without
------- "vry-------- interest. They will be issued in bearer form only, and in denominations of
|1,000, $5,000, $10,000, $100,000, $500,000, and $1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the
closing hour, two o'clock p.m., Eastern Standard time, Monday, November 2O^_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 therefor.
Others than banking institutions will 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 from others must be accompanied
by payment of 2 percent of the face amount of Treasury bills applied for,
TREASURY DEPARTM ENT
Information Service
WASHINGTON. D .C .
110
RELEASE M O R N I N G N E W S P A P E R S
S-2510
The S e c r e t a r y of the Tre^^sury, by this public notice, invites
tenders for $ 1 , 1 0 0 , 0 0 0 , 0 0 0 , or t h e r e abouts, of 9 1 - d a y T r e a s u r y bills,
for cash and in e x c h a n g e for T r e a s u r y b i lls m a t u r i n g N o v e m b e r 24,
1950, to be i s sued on a d i s c o u n t b a sis u n d e r c o m p e t i t i v e a nd n o n
competitive b i d d i n g as h e r e i n a f t e r pro v i d e d .
The bills of this
series will be d a t e d N o v e m b e r 24, 1950, and w i l l m a t u r e F e b r u a r y 23,
1951, w h e n the face a m o u n t will be p a y a b l e w i t h o u t interest*
They
will be i s s u e d in b e a r e r f o r m only, and in d e n o m i n a t i o n s of $1,000,
$5,000, $10,000, $100,000, $ 50 0 , 000 , a nd $ 1 , 0 0 0 , 0 0 0 (maturity value).
Te 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., E a s t e r n S t a n d a r d time,
Monday, N o v e m b e r 20, 19 5 0 . T e n d e r s w ill not be r e c e i v e d at the
Treasury D e p a r t m e n t , Wash i n g t o n .
E a c h tend e r m u s t be for a n e v e n
multiple of $1,000, a nd in the case of c o m p e t i t i v e t e n ders the price
offered m u s t be e x p r e s s e d on the basis of 100, w i t h no t m o r e t h a n
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 t e n ders be m ade on the p r i n t e d forms a n d f o r w a r d e d in
the special e n v e l o p e s w h i c h w i l l be s u p p l i e d by 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.
Others 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 no t be p e r m i t t e d to submit
tenders e x c e p t for t h eir o wn account.
T e n d e r s w ill be r e c e i v e d
without d e p o s i t f r o m i n c o r p o r a t e d banks an d trust c o m p a n i e s a nd
from r e s p o n s i b l e a nd r e c o g n i z e d d e a l e r s in i n v e s t m e n t s e c u rities.
Tenders f r o m othe r s m u s t be a c c o m p a n i e d by p a y m e n t of 2 p e r c e n t of
the face a m o u n t of T r e a s u r y b i lls a p p l i e d for, u n l e s s the tenders
are a c c o m p a n i e d by an 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 an i n c o r p o r a t e d
bank or trust company.
I m m e d i a t e l y a f t e r the c l o s i n g hour, t e n d e r s w i l l be o p e n e d at
the Federal R e s e r v e B a n k s a n d Branches, f o l l o w i n g w h i c h public
announcement wil l be m a d e by the S e c r e t a r y of the T r e a s u r y ‘of the
amount and price r a n g e of a c c e p t e d bids.
Those s u b m i t t i n g t e n d e r s
will be a d v i s e d of the a c c e p t a n c e or r e j e c t i o n thereof.
The
Secretary 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
reject a ny or all tenders, in w h ole or in part, a nd his a c t i o n in
2
a n y such r e s p e c t shall be final.
S u b j e c t to these reservations,
n o n - c o m p e t i t i v e tenders for $ 2 0 0 , 0 0 0 or less w i t h o u t stated price
f r o m a n y 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
(in three d e c imals) of a c c e p t e d c o m p e t i t i v e bids.
S e t t l e m e n t for
a c c e p t e d tenders in a c c o r d a n c e w i t h the bids m u s t be m ade 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 on N o v e m b e r 24, 1950* in cash
pr other i m m e d i a t e l y a v a i l a b l e f u nds or in a like ’face amount" o*f '
T r e a s u r y bills m a t u r i n g N o v e m b e r 24, 1950•
Cash a nd exchange
t e n d e r s will re c e i v e e q ual treatment.
C ash a d j u s t m e n t s will be
mad e for d i f f e r e n c e s b e t w e e n the p a r value of m a t u r i n g bills
a c c e p t e d i n e x c h a n g e and the issue price of the n e w bills.
T h e income d e r i v e d f r o m T r e a s u r y b i l l s , .w h e t h e r i n t e r e s t or
g a i n f r o m the sale or other d i s p o s i t i o n of the bills, shall not
have a n y e xemption, as.such, and loss f r o m the sale or other
d i s p o s i t i o n of T r e a s u r y bills shall not h a v e ' a n y special treatment,
as such, u n d e r the In 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
s u p p l e m e n t a r y thereto.
The b i lls shall be subject to estate,
i n h e r i t a n c e , .gift or o t h e r e x cise taxes, w h e t h e r F e d e r a l or State,
but shall be e x e m p t f r o m all t a x a t i o n n o w or h e r e a f t e r imposed on
the p r i n c i p a l or in t e r e s t t h e reof by a n y State, or a n y ,of the
p o s s e s s i o n s of the U n i t e d States, or by a n y local t a x i n g authority.
F o r - p u r p o s e s of t a x a t i o n the .amount of d i s c o u n t at w h i c h Treasury
bills are o r i g i n a l l y sold by the U n i t e d States shall be considered
to be interest.
U n d e r S e c t i o n s 42 and 117 (a) (l) of the Internal
R e v e n u e Code, as a m e n d e d . b y S e c t i o n 1 1 5 . of the R e v e n u e Act of 1941,
the amount of d i s c o u n t at w h i c h bills i s sued h e r e u n d e r are sold shal]
not be c o n s i d e r e d to accrue u n til such bills shall be sold, redeemed
or o t h e r w i s e d i s p o s e d of, a nd such bills are e x c l u d e d f r o m c o n
s i d e r a t i o n as c a pital assets.
A c c o r d i n g l y , the o w n e r of Treasury
b i lls (other than life ins u r a n c e c o m p anies) issu e d h e r e u n d e r need
include in his income tax 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 for such bills, w h e t h e r on or i g i n a l issue or on s u b
sequent purchase, and the a m ount 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 taxable y e a r for w h i c h the
r e t u r n is made, as o r d i n a r y g a i n or loss.
T r e a s u r y D e p a r t m e n t C i r c u l a r No. 4l8, as amended, a nd this
notice> prescribe-. the terms of the T r e a s u r y bills a nd g o v e r n the
c o n d i t i o n s of their issue.
Copi e s of the c i r c u l a r m a y be obtained
f r o m a ny F e d e r a l R e s e r v e B a n k or Branch.
oOo
co
expression oflfaith, an
€. 'M
n
express.! orilo f |c \j%
i-X
I 9 % S IM I
Il 2 V ©
i economic system which has the
ty toimake uselqf la i tithe
energy w m c h we can put into it
s an expression of our belief that
we canlachieve our cherished
object!ve -- a s
c onon
)fig and growing
at ham »1furie ti on ing as part
of a prosperous
peaceful
Today trie survival
our own c o u n t r y , in t n
which look
» for
world.
of freedom in
free
leadership.
ion
c
industryfgs contrI but ion in
m a
f.en gre
er iod wsis
Bu t ourf war producti on record by
eans |te 1 1s the full s tbry. B f the
n o i m e <
;*yf* %#■
uc t i01 po tent isiities |Wft ;..:possessl
y • lOur | C#lii €i>CP| t y g t o I produce!and
£ * i ¿Mttt
our ab i 1 l ty to pr oduce d id not stop
m
?I1fw *
fe*1| th e ces ||pIEIt i in | o f l h o s t l 1 i t i e s . JrI
W
the
mf
n %cNF t f i v e |y e a r s ,
one ha
H i l l
s
O
#•*
in further exp
capac ity
pri vate b u s in e s s
close tolls 1GO billion
jing its producti
That is the tremendous
increase in
iifit a I'Id equ ipiiit:h t $ in t ec hn ic a I
y
y- 11
in know-how which took
place durin
years following the
c Iose of the war.
0 u r in g the w a r * we had expanded
iitr indus tr Ia I o I
that were
uftpreee den ted heishts
Ï I
f-il C f
«foi
mer
I'I v-A'. tJf
t eîTicient war production
machin© the world has ever known.
Between
alone
IM W
1941 and
IB45,
the Government
invested some $18 billion for
€*
&
«Ur
ni
q u ipment.
And* privât m
ar mention.
a s
1 we
1, hi Kf^
h e a rt
10
r
-0 u
Sp.pf*O ilCn
%fi i S
w&
CSH
th 1 1 we c; 0 I'll 0
f P0®
ta sk
.■t e S t » .
b e t i e r
.p r e p
a r ‘©cl
L H:.Sl n
^tir ^sti ;008 I h is.tor y-*
©v ep
Our in
the¿past five years, our economy has' .
a Ho wn a cap ac Ia y 'tore on t tnued
q w t b,
face of rapidly changing
f 4 A
w w
11 1ons;, wn ic
haslastonished the
*:p.r io -- and confounded our enemies,
tou wi,i|i ail recall
I949, jgf ojr example -- whi
«>
adjustments of
that the inventory
^ere widely heralded as the beginning
of aisaster -- actually took place si.in
cm
if 16
are necessary if the strength of our
economy
the area
is to be fully protected.
In
in which you are particularly
interested -- private credit -- steps
have already been taken to assure
adequate financing whereJ it jii s needed«
to facfflltate mi I itaryi|product io n , at
the same t ime|;t hat credit expansion has
been
limited in other sectors of the
economy.
now, as
I have every confidence that
in the past, members of the
financial and business communities will
cooperate freely and unselfishly
in
14
output.
io avoid inflation,
wg
must
divert a subs tantia I part
• ^ ; *1i :; in c o me s from Ithe Ispend ini
stream.
This can be a c c orno I
ids It I0
a
es, |increased savings
While adequa
c*
C
D
ano se If-restraint.
tax revenues are
the f i|jst ,0S.S8f1'ti H 1 of ajjsound Federa
fiscal program,
43• f r i t s
only essent ia 1 .
S:t 2 0
L¿
'ci C Ut! f;S
Wi t *n1 M «a >1vpub 1 ic debt
IS
if
no w, t he Government
has an obiigat ion of
to protect the
they are not
1#fIf?
highest order
investment of the
12
It is of particular significance
in this period of heavi ly increasing
defenselou11 ays that the Congress and
the President have taken
steps to cur.tail the
important
inary
expenditures of the Government.
There have already been marked results
from this program for ach iev i n f l ^ | H |
economies
in the nonmilitary
of the Government.
A balance between revenues and
expenditures is, as i have emphasized,
of first
importance in maintaining the
#
mere
3 taxes voted
8 lst Cohere §|»Sp,:sptlP
IK ?
the I r
Ioi 1 1â
11
courseI
I II
h»fa
IBS imoroviriE tii
%»■
%#
•
IS
•'J I
W
y § we cannot
Ir
H
a <
iü
W «
&4
e m o e n cf i f
revenues
Ü 1
1*1
the' defense oroaram
gets more fui
none to ma
A
w e e n
e s s
he
B U S
If t m £& £!
very much larger increases in the rat
of taxation
li%l^ For tuna tely, we|are enteringlthis
per iod I# it hi the f Inane @s of t hef'’»|^^^S
Government
in a relatively s t r o n g ^ ^ H
posi tion.jHihe^def left for 1 1 hg
fiscal
year to datefamounts t o l a / ^ f ^ '
bini S l
$700 mill I ion, as compared
with agjdef ici t|of $3 billion for the II
corresponding!per Iod in the fiscal J|fl
ye&rll'9SO.
; ■' Ì|l H |
The fact¡that revenues are
currently a Imost!balancing expenditures
reflects
in part the hi gn|ratelof 'Èkj} 11
en
■.
T» e
or i I s i tu a t i I I I « i cn nas p |
H® j&$ r‘ü- Jl n e p d e dense e f t or t vis a g|
■liffillllii :1Ä' Of ;U£.illlllS ÿ 1Ü
» Q use l e i-..y... ;s s §I í a re ; -a'. ü«'çC'efu i ' peonie,
■ppà^ft
^ ^j-.<- ï>'?I o
0
.u
er s o u g h t | | , ;|§S u s on a Í
<. í y.i'! CÍsí .4f■ I Cf;%hä V 0g. be8H
ÄelltMfel®di
-^.rutif ,uur- ,,rûte Ç,tiOn »^Ls$î;|||0 no mb'
ItfPPM
9.
Wñm &n| | ® i p * i i p i t o g o in
In lai p S p s p e r I
Ö
*
! y b ê sed .on
measures which are best|suited to
particular situations developing in the
credit area.
democracy,
As citizens of
however» you also have the|l
broader responsibi I ity for evaluating
such programs in terms off the
contributions which they make to the
well-being of the Nation as a whole.
In my view,
it would be impossible
to overrate the importance of these
responsibiIities.
A sound financial
system is essential to a strong
It is a great privi lege to be
here with you and to address this
nation-wide gathering of men concerned
with important problems
of credit and finance.
in the field
***31888$j
All of you here today, as well
as the institutions and o r g a n izations
which you represent,
have a heavy
respons ib » Ii ty during th Îslcruc ia I
period
in our national
credit specialists,
h istoryJis AsP
you are rightly
concerned with promoting the specific
TREASURY DEPARTM
ENT
Washington
The following address by Secretary Snyder before
the annual convention of the American Finance
Conference, at the Palmer House, Chicago is
s c h e d u l e d .foy,,deli very at 1:45 P.M.. CST. Tridav
November 17. 1950. and xi Æ o r ^ F e l ë a ^ TEZt.
—
^ v T / /
!»
137
TREASURY DEPARTMENT
Washington
The f o l l o w i n g ad d r e s s b y S e c r e t a r y S n y d e r
b e f o r e the a n n u a l c o n v e n t i o n of the
A m e r i c a n F i n a n c e C o n f e r e n c e , at the P a l m e r
House, Chicago, Illinois, is s c h e d u l e d for
d e l i v e r y at 1;45 p. M
CST, Friday,
N o v e m b e r 17, 1950» a n d is for r e l e a s e at
that t i m e .
It is a great privilege to be here with you and to address
this nation-wide gathering of men concerned with important
problems in the field of credit and finance.
All of you here today, as well as the institutions and
organizations which you represent, have a heavy responsibility
during this crucial period in our national history.
As credit
specialists, you are rightly concerned with promoting the
specific measures which are best suited to particular situations
developing in the credit area. As citizens of a democracy, how
ever, you also have the broader responsibility for evaluating
such programs in terms of the contributions which they make to
thé well-being of the Nation as a whole.
In my view, it would be impossible to overrate the
importance of these responsibilities. A sound financial system
is essential to a strong economy,* and today the American economy,
with its great vitality and power for growth, represents the
reserve strength of the entire freedom-loving world.
It is the
one weapon which a dictatorship can never duplicate; because to
do so it would have to replace autocracy with freedom.
In every
a? ? \ 0f domestlc endeavor, we must make certain that the policies
which we adopt are designed in such a way as to strengthen
rather than weaken the sinews of our productive power.
The world situation which has made it necessary for us to
unite behind a new defense effort is not one which any of us can
ace with equanimity, We are a peaceful p e o p l e . We have never
sought any additional territory outside our bo r d e r s . We have
restored territories to the citizens of lands which have been
under our protection. We do not want any. more than a n
opportunity to join with others in a prosperity based on the
S-2511
2
138
of free iildivi^ a l s and free nations, each sharing
yith the other knowledge, ability, the products of industry and
trade, and the products of human skill and resourcefulness.
That is our continuing objective. It is difficult for us
to conceive of any other nation, or group of nations
delib
erately seeking to place obstacles in the way of such an
objective; But now we are faced with the grim reality of a menace
t0 our course which, without the most determined resistance
could destroy all that we are attempting to do.
It is a menace,
which could destroy all the products of the thinking and the
effort so magnificently evidenced in the achievements of our
free enterprise system.
It could destroy everything that we
have done to build up this nation; it literally could destroy
¥a^
bife that we have fashioned for ourselves.
It
could blot out, as if they had never existed, the free institu
tions which have made all of these things oossible.
.
To, m e e '
t this threat, we must build up our defenses to the
where we have the force to face force, and all will know
that when we make statements and express our belief in the
cause of freedom, we mean what we say.
.
ds regrettable that we have not yet reached that period
when nations can sit down across the table and work
out thetr problems, without the backing of arms. But the hard
act is that today we must have a defense force that is convincing
to back up our will for peace.
evincing
.Providing that force will be a costly process.
It will
we , ?nce aSaln aPP!y ^ our military defenses a
of our labor* oup management talent, our
Thi^
yf plant> technical, knowledge, and raw materials .
s t r a t h t be accomplished in ways that will preserve the basic
strength of our national economy,
and
-hfS a pa,it;5:fular bearlng on our current fiscal
l6S 7" botb publio and Private.
In the fiscal
t a ? 4 ^ , I l f * requirement of a sound program is an amount of
area
position n?
wl11 glIe maximum protection to the financial
position of the Government.
This means enough revenue to pay
for current Government needs as they a r i s e .
P y
of t h e ° ^ " telyi
are ®nbering thls period with the finances
for t h f T f w i n ^ ln 4-a relatively strong position.
The deficit
r the fiscal year to date amounts to about $700 million as
p e S o d e in V fhth ? . defi oit of $3 b i l l i o n for the c o r r e s J o i d ? i g
period m
the f i s c a l y e a r 1950.
&
139
- 3 ■
??? faco that revenues are currently almost balancing
expenditures reflects In part the high rate of business activity
which our country has been enjoying so far this year
The
increased taxes voted by the 8lst Congress will, of ¿ourse, have
their effects in improving the revenue outlook. But as the
defense program gets more fully underway, we cannot hope to
maintain a balance between revenues and expenditures unless the
Congress provides for further and very much larger increases in
the rate of taxation.
It.is of particular significance in this period of heavily
increasing defense outlays that the Congress and the President
steps to curtail the ordinary expenditures
of the Government.
There have already been marked results from
this program for achieving greater economies in the nonmilitary
areas of the Government.
A balance between revenues and expenditures is, as I have
emphasized, of first importance in maintaining the financial
strength of our Nation.
Increased Federal revenues are the
can be used effectively in the battle against
inflation. Every citizen is aware that we must not only find
the means of payment for our military needs -- we must do this
without setting in motion an inflationary spiral. Excessive
price rises would damage our present ability to produce.
They
would seriously jeopardize our capacity for continued production at maximum rates of output.
To avoid inflation, we
must divert a substantial part of our current high incomes from
the spending stream.
This can be accomplished by additional
taxes, increased savings and self-restraint.
"While adequate tax revenues are the first essential of
£i S°al PT°Sra m . they are not the only essential,
^ e h t t h e s l z e that ours Is now, the Government has
an ooligation of the highest order to protect the jr.-estment of
_ s J h P ll0nS °f °ur citizens in Federal securities. This means
® „ ® bt management program which is planned and implemented in
as to contribute in maximum degree to the stability
and well-being of the Nation's economy.
In addition to these important fiscal objectives of
adequate revenues and a sound program of Federal debt manage-
wh?h
are °ther safeSuards in the field of monetary policy
which are necessary if the strength of our economy is to be
S u f J Protected.
In the area in which you are particularly
a s s S e S«dL~,;+Prc® ?redli ~ 3teps have already been taken to
ade<3.uye financing where it is needed to facilitate
ary production, at the same time that credit expansion has
140
_ If _
be©n limited in other sectors of the economy.
X have every
confidence that now, as in the past, members of the financial
and business cómmunities will cooperate freely and unselfishly
in protecting the soundness of the Nation*s credit structure
and thereby promoting the continued good health of our economy.
You will note that I have been emphasizing mainly the
course which we should take in framing public policies which
will enhance the domestic strength of our Nation, But the roots
of our strength are not found alone in the area of public policy
They spring from the actions of millions of free individuals _
actions which are expressed in the many thousands of decisions
large and^small, which all of us make in the course of our
daily living.
It is in this area of individual action that we
extent of our strength as a Nation during the
critical years ahead of us.
It is in this area that each one
of us must be prepared to accept the personal burdens and make
the personal sacrifices which are required when a Nation of
fis© individuals faces the challenge of aggression.
As we approach this test, we can take heart from the fact
that we come to our task better prepared than ever before in
our national history.
During the past five years, our economy
has shown a capacity for continued growth, in the face of
rapidly changing conditions, which has astonished the world -and confounded our enemies. Y o u will all recall that the
inventory adjustments of 1949,. for example — which were widely
heralded as the beginning of disaster -- actually took place
with very little loss of business momentum. We were soon back
m stride with the highest production the Nation had ever
known. We were soon back in the situation in which individuals
were receiving incomes at an annual rate well above the previous
peak of about $215 billion, and when virtually the entire labor
force was fully employed.
. ?ne development which played a leading part in our rapid
adjustment to changing conditions during 1949 should, perhaps
^ ve? Particular mention.
That is the tremendous increase5
equipment, in technical resources, and in know
ing war°h t00k place during the years following the close of
® uri n g t h e war, we had expanded our industrial plant to
then unprecedented heights. We had built the most
euicient war production machine the world has ever known.
and 1945, the Government alone invested some
c
o
m
^
r
plants and equipment. And, private industry
contribution in the same period vas even greater.
141
- 5 But our war production record by no means tells the full
story of the production potentialities we possess today.
Our
capacity to produce and our ability to produce did not stop
with the cessation of hostilities.
In the last five y e ars,
private business alone has spent close to $100 billion in
further expanding its productive capacity.
That is an expression of faith, an expression of confidence
that we have an economic system which has the capacity to make
use of all the energy which we can put into it.
It is an
expression of our belief that we can achieve our cherished
objective - - a strong and growing economy at home, functioning
as part of a prosperous and peaceful world.
Today the survival of freedom in our own country, in the
free nations which look to us for leadership, and in the hearts
of all those for whom freedom is still a hope, depends in
large part on the policies which we pursue and the individual
actions which we take here at h o m e . If we remain strong in
faith, clear of purpose, and steadfast in our determination to
protect our American beliefs and our American way of living,
there can be no doubt of the ultimate triumph of the cause of
freedom throughout the world.
oOo
2
is a long and arduous task.
Despite the obvious inherent difficulties in this
field, the record of the Bureau is demonstrated by the fact that during the
past four years over 2,700 cases throughout the country have been recommended
to the Department of Justice for prosecution*
Contrary to the statements made
by the California Crime Commission, there have been many investigations of
underworld characters in the State of California and in many of these convictions
have been secured*
time*
Many more are under intensive investigation at the present
"When the necessary evidence has been secured, assurance can-fee given
that appropriate action will be taken.
It is unfortunate, in the interest of the reputation of these thousands
of Internal Revenue employees whose integrity has been attacked, that a
discussion of the specifications of the California Crime Commission not only
would be contrary to law but inimical to the successful prosecution of fraud
cases now under consideration*
^
yf'
"Tu^.h»,
ufn r »
ppS
|||
IIp
When asked to comment on press statements concerning the report of the
California Crime Commission, which contained statements casting reflection upon
- ' ^ '/ .
I'M**
the integrity of the Internal Revenue Service, specifying^"links with rackets"
and "failure to prosecute any of the underworld characters of California," the
Commissioner of Internal Revenue, George J. Schoeneman, made the following
statements
"Because of the law which prohibits any discussion by the employees of the
Internal Revenue Service of the details of tax cases, it is not possible to
make any comment concerning the specific cases referred to in the report of the^
Crime Commission*
statements thaf"ThterhaI Revenue employees are linked
with^raekete are innnl fftfit.ly uwftvfrrJ If the painstaking work and successful
accomplishments of the Internal Revenue Service employees could be dm
there would be no lack of confidence in our performance record or integrity*
To the contrary, there would be great commendation for a group of employees
who are making many sacrifices at low pay for an important branch of the
Government which stands out in efficiency and honorable service.
"Our workload is primarily and necessarily directed to the collection of
the revenue from JhBnerst baxpayers^whc make ug/the great body of our population.
This of course is a huge task in itself, having in mind that we are engaged in the
processing of over 50 million income tax returns and the collection of some forty
billion dollars in revenue*
At the same time employees of the Revenue Service
have been ever alert to their responsibilities in connection with that small
Vb t a W
—
minority who would cheat all of us by attempted evasion of their fair share
of the tax burden*
Development of evidence sufficient to sustain a recommenda
tion to the Department of Justice of criminal prosecution of the tax evader
TREASU RY DEPARTM ENT
Information Service
Wa s h i n g t o n , d .c .
144
IMMEDIATE RELEASE,
Thursday, November
16 ,
1950.
S-2512
When asked to comment on press^statements concerning the
report of the California Crime Commission, which contained
statements casting reflection upon the integrity of the
Internal Revenue Service, spec ifying alleged "links with
rackets" and "failure to prose cute any of the underworld
characters of California,"' the Commissioner of Internal Revenue
George J , Schoeneman, made the following statement:
Because of the law which prohibits any discussion
by The employees of the Internal Revenue Service of the
details of tax cases, it is not possible to make any
comment concerning the specific cases referred to in
the report of the California Crime Commission.
If the
painstaking work and successful accomplishments of the
internal Revenue Service employees could be disclosed
tnere would be no lack of confidence in our performance record or integrity.
To the contrary, there
would be great commendation for a group of employees
who are making many sacrifices at low pay for an
important branch of the Government which stands out
m efficiency and honorable service.
’
.’Our workload is primarily and necessarily
directed to the collection of the revenue from the
great body of our population.
This of course is a
huge task in itself, having in mind that we are
engaged in the processing of over 50 million income
tax returns and the collection of some forty billion
dollars in revenue. At the same time employees of the
Revenue^Service have been ever alert to their responsibilities in connection with that small minority who
would cheat all of us by attempted evasion of their
proper share of the tax burden.
Development of
evidence sufficient to sustain a recommendation to the
Department of Justice of criminal prosecution of the
tax evader is a long and arduous task. Despite the
°^V+2UST3lnllerent dlffioulties in this field, the record
oi the Bureau is demonstrated by the fact that during
the past four years over 2,700 cases throughout the
145
-
2
-
c o u n t r y have b e e n r e c o m m e n d e d to the D e p a r t m e n t of
Ju s t i c e for p r o s e c u t i o n .
C o n t r a r y to the sta t e m e n t s
m a d e b y the C a l i f o r n i a Crime Commission, there h a v e
b e e n m a n y i n v e s t i g a t i o n s of u n d e r w o r l d c h a r a c t e r s in
the State of C a l i f o r n i a a nd in m a n y of these c o n
v i c t i o n s h a v e b e e n s e c u r e d . M a n y m o r e are u n der
in t e n s i v e i n v e s t i g a t i o n at the p r e s e n t time.
When
the n e c e s s a r y ev i d e n c e has b e e n secured, a s s u r a n c e
is g i v e n that a p p r o p r i a t e a c t i o n w i l l be taken.
"It is u nfortunate, in the in t e r e s t of the
r e p u t a t i o n of the t h o u sands of I n t e r n a l R e v e n u e
e m p l o y e e s w h o s e i n t e g r i t y has b e e n attacked, that
a p u b l i c ^ d i s c u s s i o n of the s p e c i f i c a t i o n s of the
C a l i f o r n i a Crime C o m m i s s i o n no t o n l y w o u l d be
c o n t r a r y to law but I n i m i c a l to the s u c c e s s f u l
p r o s e c u t i o n of fraud cases n o w u n d e r c o n s i d e r a t i o n . "
0O0
IMMEDIATE BELEASE
Friday. NuvCTftTgr "!
Secretary
Snyder
today announced
„
„
— ------------ ----------V * the appointment of A.CA WCrrant7
J .C w .* v ,
Las Vegas, Nevada, as Chairman of the Treasury Advisory Committee
on Savings Bonds for the State of Nevada.
of the
rnrfrio
o
n
. /Secretary Snyder said 11the experience
and leadership of Mr, Grant will oe of i
____ _____,.fi
program1
1.
Mr. Grant is the owner and manager oi^Tf>e ¿naana AQnnoy m las
Vegas. For the past 25 years he has been active in civic and state
affairs. He is a pa^t president of the Hotary Club and the Chamber
of Commerce of Las Vegas. He is well known in national American
Legion circles, having served on the National Executive Committee of
that organization. At present, he is a member of the Nevada State
Planning Commission. Daring World War II he was one of the outstanding
volunteer workers in the War Bond Drives in his home county.
Advisory committees are established in each state and the District
of Columbia to consult with the Treasury on its program to promote
the sale of Savings Bonds through payroll savings, banks, schools,
and^SSS*»' business and civic groups.
v
I M M E D I A T E RELEASE,
Thursday, N o v e m b e r 16.
1950.
S -2 5 1 3
S e c r e t a r y S n y d e r t o d a y a n n o u n c e d the a p p o i n t m e n t
of A. C. Grant, b u s iness m a n of Las V e g a s
Nevada, as
C h a i r m a n of the T r e a s u r y A d v i s o r y Committe e on S a v ings
B o n d s for the State of Nevada.
S e c r e t a r y S n y d e r said " the e x p e r i e n c e a nd leadership of Mr. Grant w i l l be of g r e a t v a l u e to the
S a v ings B o n d s Program."
Mr. Grant is the o w ner a n d m a n a g e r of a n autom o b i l e a g e n c y in Las V e g a s . F o r the pas t 25 y e ars
rie has b e e n a c t i v e i n civic and state a f f a i r s
He
is a p ast p r e s i d e n t of the R o t a r y C lub a nd the
C h a m b e r of C o m m e r c e of Las V e gas.
H e is v e i l k n o w n
in n a t i o n a l A m e r i c a n L e g i o n circles, h a v i n g served
on the N a t i o n a l E x e c u t i v e C o m m i t t e e of that organP r e s e n ^ he is a m e m b e r of the N e v a d a
otate P l a n n i n g C ommission.
D u r i n g W o r l d W a r II he
was one of the o u t s t a n d i n g v o l u n t e e r w o r k e r s in
the W a r B o n d D r i v e s i n his h o m e county.
A d v i s o r y com m i t t e e s are e s t a b l i s h e d i n eac h
state and the D i s t r i c t of C o l u m b i a to c o n sult w i t h
the T r e a s u r y o n its p r o g r a m to p r o m o t e the sale of
p a y r o l l savings, banks, schools,
a nd business a nd civic g r o u p s .
9
0O0
SIGNATURE OF EMPLOYEE
ADDRESS OF EMPLOYEE
E M P L O Y E E ’S
ACCOUNT
F o r m 88-15a S u p p l e m e n t
U. S. T R E A S U R Y D E P A R T M E N T
Date
I nternal R evenue Service
C O L L E C T O R O F IN T E R N A L R E V E N U E ,
Si r :
(Please print name of organization in full)
(Street and number)
(City or town)
........................
(Postal zone number)........
an organization exempt from Federal income tax under section 101 ( 6 ) of the Internal Revenue Code, under date o f ...............
..
(Month, day, and'ytlf
,a “
°n I T
SS_15 CCrtifying that k desires t0 have the insurance system established by title II of the Social Security J
(Federal Old-Age and Survivors Insurance Benefits) extended to services performed by its employees. The accompanying 1 1 1
mental list amends the list on Form SS-15a filed with the certificate by adding thereto the signatures appearing on such supplem^}
(Name of organization)
(Name)
•
emf 1° yee
(Title)
above-named organization, I hereby concur, as evidenced by my signature, in the action of the organiaatJ
lo D lica b W h h ï f nertr<i f Cate
u? dekrstand .that the employee tax imposed under the Federal Insurance Contributions Act will
applicable with respect to services which constitute employment performed by me on and after the effective date of the certificate
SIGNATURE OF EMPLOYEE
ADDRESS OF EMPLOYEE
( O VER)
E M P L O Y E E ’S SOCIAL SECURITY
A C C O U N T N U M B E R (IF ANY)
F o r m 8 8 - 1 5a
U. S. T R E A S U R Y D E P A R T M E N T
I nternal R evenue S ervice
When
LIST TO ACCOMPANY CERTIFICATE ON FORM SS-15 W AIVING E X E M P T S ,
FROM TAXES UNDER THE FEDERAL INSURANCE CONTRIBUTIONS ACT
Revenue
! piaci
form 94
lith the
fcnter its
J Contit
»or the s
fate, the
¡he same
■lined
(Please print name of organization in full)
ÏEtnplo
(Street and number)
(City or town)
(Postal zone number)
(State)
an organization exempt from Federal income tax under section 101 ( 6 ) of the Internal Revenue Code, proposes to file pursuant to
J
■fanorg
location
|or/n SS-
[Sectic
provisions of Section 1 4 2 6 ( 1 ) of the Federal Insurance Contributions Act, a certificate on Form S S-15 certifying that it desires to h J
(a) I
the insurance system established by title II o f the Social Security A ct (Federal Old-Age and Survivors Insurance Benefits) extendi tode is
"(b
to services performed by its employees and that at least two-thirds of its employees concur in the filing of the certificate. Section!
servici
empio
1 4 2 6 ( 1 ) provides that the certificate may be filed only if it is accompanied by a list containing the signature, address, and social secunl
such t
account number, if any, of each employee who concurs in the filing of the certificate.
■
"(9
•
emPloyee o f the above-named organization, I hereby con cur, as evidenced by my signature, in the action o f . the organi&tiol
licensed
“
of ^ ch a certificate and understand that the employee tax imposed under the Federal Insurance Contributions ActwiJ (if a reli)
"(I
be applicable with respect to services which constitute employment performed by me on and after the effective date of the certificate]
cation
101(
SIGNATURE OF EMPLOYEE
ADDRESS OF EMPLOYEE
E M P L O Y E E ’S SOCIAL SECURITY
A C C O U N T N U M B E R (IF,ANY)
durinj
is in
signal
tion (
calent
;■ (:
pital I
reguli
prove
empli
cours
I (0 :
insertin
" ( 1)
(OVER)
150
INSTRUCTIONS
f0 £ie___This form shall be filed with the Collector of Internal
for the district in which is located the principal office or princiLTnkce of business of the organization. (A n organization already filing
| 041 Employer’s Quarterly Federal T ax Return, should file this form
iT th e collector with whom such returns are being filed, and should
r® ;K name on this form as shown on such returns.)
rlnunuation sheets.— It there is not sufficient space on Form SS-15a
the signature of each employee who concurs in the filing of the certifiL the organization should provide an additional sheet (o r sheets) of
h same or similar size for this purpose. Such sheet (o r sheets) should
t lined in the same manner as the form.
I Employees performing services at locations other than the principal office.—
If an organization has a number of employees performing services for it at a
Ication (or locations) other than that of its principal office, a separate
form SS—15a may be used for each such location. Each such Form SS-15a
,
should show thereon the address of the particular place of employment and
all such forms must be submitted with the certificate on Form S S-15.
An organization which has employees who individually or in small
groups perform services at various locations may, if it so desires, prepare
and submit to each such employee an individual form for use by him in
disclosing his concurrence in the filing of the certificate. Such form
should contain a statement thereon to the effect that the employee concurs
in the action of the organization in the filing of a certificate certifying
that it desires to have the insurance system established by title II of the
Social Security Act extended to services performed by its employees, and
such form should provide a place for the signature, address, and social
security account number (if any) of the employee. Individual forms
signed by concurring employees should be submitted with the certificate,
together with a typewritten list containing the name, address, and social
security account number (if any) of each such employee.
¡Section2 0 4 ( à ) ,( e ) , an d (g ) o f th e S o cial S ecurity A c t A m en d m en ts o f 1 9 5 0 — D E F I N I T I O N O F E M P L O Y M E N T
I (a) Effective January 1, 1951, section 1426 ( b ) of the Internal Revenue
ide is amended to read as follows:
f “(b) Employment.— The term 'employment’ means * * * any
i service, of whatever nature, performed after 1950 * * * by an
employee for the person employing him * * * ; except that * * *
such term shall not include—
" ( 9 ) (A ) Service performed by a duly ordained, commissioned, or
licensed minister of a church in the exercise of his ministry or by a member
If a religious order in the exercise of duties required by such order;
"(B ) Service performed in the employ of a religious, charitable, edu
cational, or other organization exempt from income tax under section
| 101 (6 ), but this subparagraph shall not apply to service performed
I during the period for which a certificate, filed pursuant to subsection (1) ,
I is in effect if such service is performed by an employee ( i ) whose
I signature appears on the list filed by such organization under subsecI tion (1), or (ii) who became an employee of such organization after the
I calendar quarter in which the certificate was filed;
*
*
"(11) 4A.) -*
*
*
*
*
*
*
*
*
*
*
"(B ) Service performed in the employ of a school, college, or uniI versity if such service is performed by a student who is enrolled and is
I regularly attending classes at such school, college, or university;
*
*
*
*
*
*
*
"(1 4 ) Service performed as a student nurse in the employ of a-hosI pital or a nurses’ training school by an individual who is enrolled and is
I regularly attending classes in a nurses’ training school chartered or ap| proved pursuant to State law ; and service performed as an interne in the
I employ of a hospital by an individual who has completed a four years’
I course in a medical school, chartered or approved pursuant to State law ;
$
H*
$
$
$
$
[ (e) Section 1426 of the Internal Revenue Code is amended by
[inserting * * * the following:
*
*
*
*
*
$
$” .
*
*
*
*
[ "(1) Exemption of R eligious, Charitable, Etc ., O rganizations.—
" (1 ) W aiver of exemption by organization.— An organization
| exempt from income tax under section 101 ( 6 ) may file a certificate
[ (in such form and manner, and with such official, as may be prescribed
by regulations made under this subchapter) certifying that it desires to
I have the insurance system established by title II of the Social Security
Act extended to service performed by its employees and that at least
L two-thirds of its employees concur in the filing of the certificate. Such
certificate may be filed only if it is accompanied by a list containing the
Signature, address, and social security account number (if any) of each
employee who concurs in the filing of the certificate. Such list may be
amended, at any time prior to the expiration of the first month following
the first calendar quarter for which the certificate is in effect, by filing
with such official a supplemental list or lists containing the signature,
address, and social security account number (if any) of each additional
employee who concurs in the filing of the certificate. The list and any
supplemental list shall be filed in such form and manner as may be
prescribed by regulations made under this subchapter. The certificate
shall be in effect (fo r the purposes of subsection (b ) ( 9 ) ( B ) and for
the purposes of section 210 ( a ) ( 9 ) ( B ) of the Social Security A ct)
for the period beginning with the first day following the close of the
calendar quarter in which such certificate is filed, but in no case shall
such period begin prior to January 1, 1951. The period for which the
certificate is effective may be terminated by the organization, effective
at the end of a calendar quarter, upon giving two years’ advance notice
in writing, but only if, at the time of the receipt of such notice, the
certificate has been in effect for a period of not less than eight years.
The notice of termination may be revoked by the organization by giving,
prior to the close of the calendar quarter specified in the notice of ter
mination, a written notice of such revocation. Notice of termination or
revocation thereof shall be filed in such form and manner, and with such
official, as may be prescribed by regulations made under this subchapter.
" ( 2 ) T ermination of waiver period by Commissioner.— If the
Commissioned finds that any organization which filed a certificate pur
suant to this subsection has failed to comply substantially with the
requirements of this subchapter or is no longer able to comply therewith,
the Commissioner shall give such organization not less than sixty days’
advance notice in writing that the period covered by such certificate will
terminate at the end of the calendar quarter specified in such notice.
Such notice of termination may be revoked by the Commissioner by
giving, prior to the .close of the calendar quarter specified in ine notice
of termination, written notice of such revocation to the organization.
N o notice of termination or of «vocation thereof shall be given under
this paragraph to an organization without the prior concurrence of the
Federal Security Administrator.
" ( 3 ) N o renewal of waiver.— In the event the period covered by
a certificate filed pursuant to this subsection is terminated by the organi
zation, no certificate may ag^in be filed by such organization pursuant
to this subsection.”
*
*
*
*
*
*
*
( g ) The amendments made by subsection * * * ( e ) * * * o f this
section shall be applicable only with respect to services performed after 1950.
Section 205 of the Social Security Act Amendments of' 1950— D EFIN ITIO N OF EM PLOYEE
(a) Section 1426 ( d ) of the Internal Revenue Code is amended to read
[as follows:
(d) Employee.— The term 'employee’ means—
" ( 1 ) any officer of a corporation; or
(2) any individual who, under the usual common law rules appli
cable in determining the employer-employee relationship, has the status
of an employee; or
(3 ) any individual (other than an individual who is an employee
I under paragraph ( l ) or ( 2 ) of this subsection) who performs services
*or remuneration for any person—
. '(A ) as an agent-driver or commission-driver engaged in distribut
ing meat products, vegetable products, fruit products, bakery products,
beverages (other than m ilk), or laundry or dry-cleaning services, for
bis principal;
( (B ) as a full-time life insurance salesman;
(C ) as a home worker performing work, according to specifica
tions furnished by the person for wfiom the services are performed,
on materials or goods furnished by such person which are required
to be returned to such person or a person designated by him, if the
performance of such-services is subject to licensing requirements
under the. laws of the State in which such services are performed: or
" ( D ) as a traveling or city salesman, other than as an agent-driver
or commission-driver, engaged upon a full-time basis in the solicita
tion on behalf of. and the transmission to, his principal (except for
side-line sales activities on behalf of some other person) of orders
from wholesalers, retailers, contractors, or operators of hotels,
restaurants, or other similar establishments for merchandise for resale
or supplies for use in their business operations;
if the contract of service contemplates that substantially all of such
services are to be performed personally by such individual; except that
an individual shall not be included in the term 'employee’ under the
provisions of this paragraph if such individual has a substantial invest
ment in facilities used in connection with the performance of such
services (other than in facilities for trartsportation), or if the services
are in the nature of a single transaction not part of a continuing relation
ship with the person for whom the services are performed.”
(b ) The amendment made by this section shall be applicable only with
respect to services performed after 1950.
F o r m 8 8-15
U. S. T R E A S U R Y D E P A R T M E N T
I nternal R evenue S ervice
CERTIFICATE W AIVING EXEM PTION FROM TAXES UNnt
THE FEDERAL INSURANCE CONTRIBUTIONS ACT
(For use by religious, charitable, educational, or other organizations exempt from income ta*
section 101 (6) of the Internal Revenue Code)
Un<*e
C o llec to r o f I n t e r n a l R e v e n u e ,
Date
Sir :
(Please print name of organization in full)
an organization exempt from Federal income tax under section 101 ( 6 ) o f the Internal Revenue Code, and having its principal office
(Street and number)
(City or town)
(Postal zone number)
(State)
hereby certifies that it desires to have the insurance system established by title II o f the Social Security Act (Federal Old-Age an
Survivors Insurance Benefits) extended to service performed by its employees and that at least two-thirds of its employees, determin
on the basis of the facts existing as of the date this certificate is filed, concur in the filing of this certificate.
This certificate is accompanied by a list on Form S S-15a which contains the signature, address, and social security accountn
ber (if any) of each employee who concurs in the filing of the certificate.
It is understood that:
( 1 ) All individuals who are employees of this organization within the meaning of section 142 6 ( d ) of the Federal InsuraJ
Contributions Act, as amended by section 205 of the Social Security Act Amendments of 1950, shall be included in determini^
whether two-thirds of the employees of this organization concur in the filing of this certificate; except that there shall notbj
included ( 1 ) those employees who at the time of the filing o f this certificate are performing for this organization services only of tn
character specified in paragraphs ( 9 ) ( A ) , ( 1 1 ) ( B ) , and ( 1 4 ) of section 1 4 2 6 ( b ) of the Federal Insurance Contributions Adj
as amended by section 2 0 4 of the Social Security Act Amendments of 1950, and ( 2 ) those alien employees who at the time of tl
filing of the certificate are performing services for this organization under an arrangement which provides for the performance on
of services outside the United States not on or in connection with an American vessel or American aircraft. As used in the precedi
sentence, the term "alien employee” does not include an employee who is a citizen of Puerto Rico, and the term "United States
includes Puerto Rico and the Virgin Islands.
( 2 ) This certificate shall be in effect for the periodbegmning with the first day following The close of the calendar quarter i
which it is filed.
( 3 ) This certificate is not terminated if this organization loses its exemption under section 101 ( 6 ) o f the Internal Revenue Code,
but continues effective with respect to any subsequent periods during which this organization is so exempt.
( 4 ) The list on Form S S-15a accompanying this certificate may be amended, at any time prior to the expiration óf the firtì
month following the first calendar quarter for which the certificate is in effect, by filing a supplemental list or lists on Form SS-15a|
Supplement, containing the signature, address, and social security account number (i f any) of each additional employee who concurs
in the filing of this certificate.
( 5 ) The taxes imposed under the Federal Insurance Contributions Act will apply to this organization and to each employee
whose services constitute employment and whose signature appears on the accompanying list or on any supplemental list file d within
the prescribed time, commencing with the first day following the close of the calendar quarter in which this certificate is file d ; sud
taxes will also apply immediately with respect to services which constitute employment performed by any individual who enters the
employ of this organization on or after the first day following the close of the calendar quarter in which this certificate is file d ; and
the reemployment of a former employee after this certificate becomes effective shall be considered for the purposes of these taxes as
a hèw employment, regardless of whether or not such individual concurred in the filing of this certificate.
It is further understood that the period for which this certificate is in effect may be terminated:
( a ) By this organization upon giving 2 years’ advance notice in writing to the Commissioner of Internal Revenue of this organi
zation’s desire to terminate the effect of this certificate at the end o f a specified calendar quarter, but only if, at the time of the receipt
of such notice by the Commissioner, this certificate has been in effect for a period of not less than 8 years. In computing the effective
period which must precede the date of receipt of the notice of termination, there shall be disregarded any period or periods as to which
this organization is not exempt from income tax under section 101 ( 6 ) of the Code.
(b ) By the Commissioner of Internal Revenue, with the prior concurrence of the Federal Security Administrator, upon a finding
by the Commissioner that this organization has failed to comply substantially with the requirements of the Federal Insurance Contribu
tions Act or is no longer able to comply therewith. The Commissioner shall give this organization not less than 60 days’ advance notice
in writing that the period covered by this certificate will terminate at the end of the calendar quarter specified in the notice.
The organization has been assigned employer identification N o ..................................... .......... .......
(If a number has not been assigned write "No n e ” )
(Name of organization!
(Name)
(President or other principal officer)
(State title)
(Name)
(Secretary, treasurer, etc.)
(State title)
(OVER)
-
2
-
Permission is granted to reproduce any one or more of the forms.
The
foim may be typewritten or otherwise reproduced but must be on a sheet or
sheets of the official size which is 8 inches wide by IO 2 inches in depth
and the contents must be identical with the official form.
However, the
material on the back of the certificate, Foim SS-li>, which includes instruc
tions as to the execution and filing of the f o m s and excerpts of pertinent
provisions of law, need not appear on the reproduced form.
/
Friday«
O
w s Release
November 17 f 1950.
¿at*****1
**011/
-• c?\ ¿y
j
George J. Schoeneman, Commissioner of Internal Revenue, today called
the attention of nonprofit organizations to the proposed regulations
published today in the Federal Register under the new law which permits
such organizations, if they desire, to subject themselves to the Federal
Insurance Contributions Act in order to provide the old-age and survivors
insurance benefits of the Social Security program to their employees.
The organizations which are eligible to make this choice are the religious,
charitable, educational and other organizations which are ordinarily
exempt from this law by virtue of the fact that they are also exempt from
income tax under Section 101(6) of the Internal Revenue Code.
Under the new law which will be effective January 1, 193>1, an organiza
tion which desires to come under this Social Security program must file a
certificate waiving its exemption from the Federal Insurance Contributions
Act taxes, and furthermore, must file a list signed by at least two-thirds
of its employees showing that they concur in the waiver.
Commissioner Schoeneman explained that in view of the desire of many
organizations and their employees to participate in the Federal Old-Age and
Survivors Insurance Program beginning January 1, 19^1, forms which are in
accordance with the proposed regulations are being provided for use for
this purpose.
A facsimile of each form is attached.
These forms will be
available through the offices of the various collectors of internal revenue
on or very shortly after December 1.
An organization desiring to be
participation on January 1, 19f>l, must file the executed forms befor
with the Collector of Internal Revenue for the district in which the
organization*s principal office is located.
Forms filed later will result
in social security coverage commencing with the calendar quarter next follow
ing the quarter in which they are filed.
153
IMMEDIATE RELEASE,
Friday, November 17, 1950
S-2514
George J. Schoeneman, Commissioner of Internal Revenue,
today called the attention of nonprofit organizations to the
proposed regulations published today in the Federal Register
under the new law which permits such organizations, if they
desire, to subject themselves to the Federal Insurance
Contributions Act in order to provide the old-age and surviv
ors Insurance benefits of the Social Security program to their
employees. The organizations which are eligible to make this
choice are the religious, charitable, educational and other
organizations which are ordinarily exempt from this law by
virtue of the fact that they are also exempt from income tax
under Section 101(6) of the Internal Revenue Code.
Under the new law which will be effective January 1 , 1951,
an organization which desires -to come under this Social Security
program must file a certificate waiving its exemption from the
Federal Insurance Contributions Act taxes, and furthermore,
must ^file a list signed by at least two-third.s of its employees
showing that they concur in the w a i v e r .
Commissioner Schoeneman explained that in view of the
desire of many organizations and their employees to partici
pate in the Federal Old-Age and Survivors Insurance Program
beginning January 1 , 1951, forms which are in accordance with
the proposed regulations are being provided for use for this
purpose.
A facsimile of each form Is attached.
These forms
will be available through the offices of the various collectors
of internal revenue on or very shortly after December 1 . A n
organization^ desiring to begin participation on January 1,
1951, must file the executed forms before January 1 with the
Collector of Internal Revenue for the district in which the
organization's principal office is located.
Forms filed
later will result in social security coverage commencing with
the calendar quarter next following the quarter in which they
are filed,
J
Permission Is granted to reproduce any one or more of the
forms. The form may be typewritten or otherwise reproduced
but must be on a sheet or sheets of the official size which is
o inches wide by 10|- inches in depth and the contents must be
identical with the official form. However, the material on
the back^of the certificate, Form SS-15, which includes
instructions as to the execution and filing of the forms and
excerpts of pertinent provisions of law, need not appear on
the reproduced form.
0O0
J. s TREASimY8DEPARTMENT
'■-'““ " " " ‘ S” "
CERTIFICATE W AIVING EXEM PTION FROM TAXES UNDER
t h e FEDERAL INSURANCE CONTRIBUTIONS ACT
(For use by religious, charitable, educational, or other organizations exempt from income tax under
section 101 (6) of the Internal Revenue Code)
Co l l e c t o r o f
In t e r n a l R e v e n u e ,
D a t e ................... .................
154
Sir :
(Please print name o f organization in fu ll)
*
* " ....... ’
[an organization exempt from Federal income tax under section 101 ( 6 ) o f the Internal Revenue Code, and having its principal office at
(Street and number)
(City or town)
(Postal zone number)
(S ta te )
fcereby certifies that it desires to have the insurance system established by title II of the Social Security Act (Federal Old-Age and
¡Survivors Insurance Benefits) extended to service performed by its employees and that at least two-thirds of its employees, determined
[on the basis of the facts existing as of the date this certificate is filed, concur in the filing of this certificate.
I This certificate is accompanied by a list on Form SS—15a which contains the signature, address, and social security account num
ber (if any) of each employee who concurs in the filing of the certificate.
It is understood that:
(1) All individuals who are employees of this organization within the meaning of section 1 4 2 6 ( d ) of the Federal Insurance
Lontributions Act, as amended by section 2 0 5 of the Social Security Act Amendments of 1 9 5 0 , shall be included in determining
U ether two-thirds of the employees of this organization concur in the filing of this certificate; except that there shall not be
Included ( 1 ) those employees who at the time of the filing o f this certificate are performing for this organization services only of the
tharacter specified in paragraphs ( 9 ) ( A ) , ( 1 1 ) ( B ) , and ( 1 4 ) of section 1 4 2 6 ( b ) of the Federal Insurance Contributions Act,
as amended by section 2 0 4 of the Social Security Act Amendments of 1 9 5 0 , and ( 2 ) those alien employees who at the time of the
■ling of the certificate are performing services for this organization under an arrangement which provides for the performance only
bf services outside the United States not on or in connection with an American vessel or American aircraft. As used in the preceding
Sentence, the term alien employee does not include an employee who is a citizen of Puerto Rico, and the term "United States”
Includes Puerto Rico and the Virgin Islands.
Ih ic/iti filed Certlficate shaIIfce in effèct fòr fhe perloJTjegmnirig with the first day-following The close of the calendar quarter in
(3) This certificate is not terminated if this organization loses its exemption under section 101 ( 6 ) o f the Internal Revenue Code
pt continues effective with respect to any subsequent periods during which this organization is so exempt.
■ (4) The list on Form SS-15a accompanying this certificate may be amended, at any time prior to the expiration o f the first
»nth following the first calendar quarter for which the certificate is in effect, by filing a supplemental list or lists on Form S S-15a
■pplement, containing the signature, address, and social security account number (i f any) of each additional employee who concurs
| the filing of this certificate..
r 1
(5) The taxes imposed under the Federal Insurance Contributions Act will apply to this organization and to each employee
Bose services constitute employment and whose signature appears on the accompanying list or on any supplemental list filed within
| prescribed time, commencing with the first day following the close of the calendar quarter in which this certificate is filed ; such
|es will also apply immediately with respect to services which constitute employment performed by any individual who enters the
ipoy o this organization on or after the first day following the close of the calendar quarter in which this certificate is filed: and
K reemp oyment of a former employee after this certificate becomes effective shall be considered for the purposes of these taxes as
|ew employment, regardless of whether or not such individual concurred in the filing of this certificate,
t is further understood that the period for which this certificate is in effect may be terminated :
th/ S ° rSani2ati° n uP0n giving 2 w $ . advance notice in writing to the Commissioner of Internal Revenue of this organi
ci surh nniL-6 k°
— e^ ect
this certificate at the end o f a specified calendar quarter, but only if, at the time of the receipt
IrioH whirl. ^ . 6 Commissioner, this certificate has been in effect for a period of not less than 8 years. In computing the effective
iis omnS S I prei ede th! r ate ° ? receipt of the, notice of termination, there shall be disregarded any period or periods as to which
■r r r
not -xempt from mcome tax under secti°n m
<6> °fthe code.
the f nl “ e Commissioner of Internal Revenue, with the prior concurrence of the Federal Security Administrator, upon a finding
Ins An nr * 2 2 2 that,tf11S 0fg ani^ation has failed to comply substantially with the requirements of the Federal Insurance Contribunlwritino tKo/fk °nger able to comply therewith. The Commissioner shall give this organization not less than 60 days’ advance notice
i
®
e period covered by this certificate will terminate at the end of the calendar quarter specified in the notice.
The organization has been assigned employer identification N o. I
(If a number has not been assigned write "None” )
(Name of organization)
(President or other principal officer)
(State title)
(Secretary, treasurer, etc.)
(State title)
(OVER)
INSTRUCTIONS
W h ere to file.— This form shall be filed with the Collector of Internal
Revenue for the district in which is located the principal office o r princi
pal place of business of the organization. (A n organization already filing
Form 9 41, Employer’s Quarterly Federal T ax Return, should file this form
with the collector with whom such returns are being filed, and should
enter its name on this form as shown on such returns.)
Continuation sheets.— If there is not sufficient space on Form SS-15a
fo'r the signature of each employee who concurs in the filing of the certifi
cate, the organization should provide an additional sheet (o r sheets) of
the same or similar size for this purpose. Such sheet (o r sheets) should
be lined in the same manner as the form.
Employees perform ing services at locations other than the principal office.—
If an organization has a number of employees performing services for it at a
location (o r locations) other than that of its principal office, a separate
For/n S S-15a may be used for each such location. Each such Form SS-15a
should show thereon the address of the particular place of emplovm
a ll such
s n rh forms
fo rm « must
m n«r be
l v submitted
cnK m ilforl with
n ritl, the
tk a certificate on
__r-Form
" _yinentIn1
all
SS^iT
An organization which has employees who individually or i ‘ r
groups perform services at various locations may, if it so desires n ! ! j
and submit to each such employee an individual form for use bv
flicrlnidnff hi« mnrnrrpnrp in fkp £!««*<>
_. ' _ * W
disclosing his concurrence in the filing of the certificate
Such lffij fJ
should contain a statement thereon to the effect that the employee l j
in the action of the organization in the filing of a certificate cert
that it desires to have the insurance system established by title II rtf*
Social Security Act extended to services performed by its employees
such form should provide a place for the signature, address and < ^
security account number (if any) of the employee. Individual 3
signed by concurring employees should be submitted with the certifin1
together with a typewritten list containing the name, address and 3
security account number (if any) of each such employee.
’
0Cl
Section 2 0 4 (à ),(e ), and (g) of the Social Security Act Amendments of 1950—D EFIN ITIO N OF EMPLOYMENT
( a ) Effective January 1, 1951, section 1426 ( b ) of the Internal Revenue
Code is amended to read as follows:
" ( b ) E mployment.— The te r m ’employment’ means * * * any
by an
service, of whatever nature, performed after 1950 * *
employee for the person employing him * * * ; except that * * *
such term shall not include—
" ( 9 ) ( A ) Service performed by a duly ordained, commissioned, or
licensed minister of a church in the exercise of his ministry or by a member
of a religious order in the exercise of duties required by such order;
" ( B ) Service performed in the employ of a religious, charitable, edu
cational, or other organization exempt from income tax under section
101 ( 6 ) , but this subparagraph shall not apply to service performed
during the period for which a certificate, filed pursuant to subsection (1) ,
is in effect if such service is performed by an employee ( i ) whose
signature appears on the list filed by such organization under subsec
tion ( 1 ), or ( ii ) who became an employee of such organization after the
calendar quarter in which the certificate was filed;
$
s{:
"(n) {A) fl*
$
*
$
*
4*
*
♦
*
4c
*
" ( B ) Service performed in the employ of a school, college, or uni
versity if such service is performed by a student who is enrolled and is
regularly attending classes at such school, college, or university;
4c
4c
4c
4c
4c
4c
4c
" ( 1 4 ) Service performed as a student nurse in the employ of a-hospital or a nurses’ training school by an individual who is enrolled and is
regularly attending classes in a nurses’ training school chartered or ap
proved pursuant to State law ; and service performed as an interne in the
employ of a hospital by an individual who has completed a four years’
course in a medical school, chartered or approved pursuant to State law ;
4c
4c
4c
4c
4c
4?
( e ) Section 1426 of the Internal Revenue Code is amended by
inserting * * * the following:
*
*
*
*
*
*
4c**
*
*
*
*
"(1 ) Exemption of Religious, Charitable, Etc ., Organizations.—
" ( 1 ) W aiver of exemption by organization.— An organization
exempt from income tax under section 1 0 1 ( 6 ) may file a certificate
(in such form and manner, and with such official, as may be prescribed
by regulations made under this subchapter) certifying that it desires to
have the insurance system established by title II of the Social Security
Act extended to service performed by its employees and that at least
two-thirds of its employees concur in the filing of the certificate. Such
certificate may be filed only if it is accompanied by a list containing t
Signature, address, and social security account number (i f any) of eaJ
employee who concurs in the filing of the certificate. Such list mayf
amended, at any time prior to the expiration of the first m onth followil
the first calendar quarter for which the certificate is in effect, byfil?
with such official a supplemental list or lists containing the signal
address, and social security account number (if any) o f each additar1
employee who concurs in the filing of the certificate. T h e list and a
supplemental list shall be filed in such form an d m anner as may f
prescribed by regulations made under this su b ch ap ter. The certified
shall be in effect (fo r the purposes of subsection (b ) (9 ) (B) and?
the purposes of section 210 ( a ) ( 9 ) ( B ) of the Social Security Ad
for the period beginning with the first day following the close of7
calendar quarter in which such certificate is filed, b u t in no case sir
such period begin prior to January 1, 1951. The p erio d for which {
certificate is effective may be terminated by the organization, effetti
at the end of a calendar quarter, upon giving two years’ advance not
in writing, but only if, at the time of the receipt of such notice, I
certificate has been in effect for a period of not less than eight yea
The notice of termination may be revoked by the organization by giv'J
prior to the close of the calendar quarter specified in the notice of f
mination, a written notice of such revocation. Notice o f termination*
revocation thereof shall be filed in such form and manner, and with su!
official, as may be prescribed by regulations made under this subchap?
" ( 2 ) T ermination of waiver period by Commissioner.—If f
Commissioner''finds that any organization which filed a certificate ¡r
suant to this subsection has failed to comply substantially with Í
requirements of this subchapter or is no longer able to comply therewi
the Commissioner shall give such organization not less than sixty da;
advance notice in writing that the period covered by such certificate w'
terminate at the end of the calendar quarter specified in such noti:
Such notice of termination may be revoked by the Commisdoner ’
giving, prior to the close of the calendar quarter specified in me not?
of termination, written notice of such revocation to the organizar
N o notice of termination or of revocation thereof shall be given un(
this paragraph to an organization without the prior concurrence of
Federal Security Administrator.
" ( 3 ) N o renewal of waiver.— In the event the period covered:
a certificate filed pursuant to this subsection is terminated by the orga(
zation, no certificate may aggin be filed by such organization pursu^
to this subsection.”
*
*
*
*
*
* ’
*
( g ) The amendments made by subsection * * * (e ) * * * of 1
section shall be applicable only with respect to services performed after 1
Section 205 of the Social Security Act Amendments o f’ 1950—D EFIN ITIO N OF EMPLOYEE
( a ) Section 1426 ( d ) of the Internal Revenue Code is amended to read
as follows:
" ( d ) E mployee .— The term ’employee’ means—
" ( 1 ) any officer of a corporation; or
" ( 2 ) any individual who, under the usual common law rules appli
cable in determining the employer-employee relationship, has the status
of an employee; or
" ( 3 ) any individual (other than an individual who is an employee
under paragraph ( 1 ) or ( 2 ) of this subsection) who performs services
for remuneration for any person—
" ( A ) as an agent-driver or commission-driver engaged in distribut
ing meat products, vegetable products, fruit products, bakery products,
beverages (other than m ilk), or laundry or dry-cleaning services, for
his principal;
" ( B ) as a full-time life insurance salesman;
" ( C ) as a home worker performing work, according to specifica
tions furnished by the person for whom the services are performed,
on materials or goods furnished by such person which are required
to be returned to such person or a person designated by him, if the
performance of such, services is subject to licensing requireme
under the, laws of the State in which such services are performed:
" ( D ) as a traveling or city salesman, other than as an agent-dfl
or commission-driver, engaged upon a full-time basis in the solic
tion on behalf of. and the transmission to, his principal XfffH
side-line sales activities on behalf of some other person) oford
from wholesalers, retailers, contractors, or operators of nOj
restaurants, or other similar establishments for merchandise tor re>l
or supplies for use in their business operations;
, I
if the contract of service contemplates that substantially all 0 ,
services are to be performed personally by such individual; exceD
an individual shall not be included in the term ’employee un «
provisions of this paragraph if such individual has a substantial 1 _
ment in facilities used in connection with the performance 0
services (other than in facilities for transportation), o r. 1‘ . e j x
are in the nature of a single transaction not part of a co n tin u in g r
ship with the person for whom the services are performed.
(b ) The amendment made by this section shall be applicable on y ,
respect to services performed after 1950.
mrm ss-isa Supplement
Date
/ « TREASURY D E P A R T M E N ’
U' internal Revenue S ervice
Co l l e c t o r o f i n t e r n a l r e v e n u e ,
155
Sir:
(Please print name of organization in full)
(Street and number)
Jin organization
*
(City or town)..................... (Postal zone’number')'......... ........... ....'(State)..... ......... ’
exempt from Federal income tax under section 101 ( 6 ) of the Internal Revenue Code, under date o f ..................................,
(M onth, day, and year)
/led a c e rtific a te on Form S S -1 5 certifying thaf it desires to have the insurance system established by title II of the Social Security Act
¡(Federal Old-Age and Survivors Insurance Benefits) extended to services performed by its employees. The accompanying supple
mental list amends the list on Form S S —15a filed with the certificate by adding thereto the signatures appearing on such supplemental
1st.
(Name of organization)
(Name)
(Title)
As an employee of the above-named organization, I hereby concur, as evidenced by my signature, in the action of the organization
1 thè filing of the certificate and understand that the employee tax imposed under the Federal Insurance Contributions Act will be
»plicable w ith respect to services which constitute employment performed by me on and after the effective date of the certificate.
SIGNATURE OF EMPLOYEE
ADDRESS OF EMPLOYEE
( O VER)
E M P L O Y E E ’S S O C I A L S E C U R I T Y
A C C O U N T N U M B E R (IF A N Y )
Form
,
ss-lSa
treasury d e p a r t m e n t
Internal R e v e n u e S e r v ic e
LIST TO ACCOMPANY CERTIFICATE ON FORM SS-15
w a iv in g e x e m p t io n
fr o m t a x e s u n d e r t h e f e d e r a l in s u r a n c e c o n t r ib u t io n s a c t
1 5 6 ...........
(Please print name of organization in full)
(Street and number)
(City or town)
(Postal zone number)
(State)
n organization exempt from Federal income tax under section 101 ( 6 ) of the Internal Revenue Code, proposes to file, pursuant to the
irovisions of Section 1426 (1 ) of the Federal Insurance Contributions Act, a certificate on Form SS—15 certifying that it desires to have
pe insurance system established by title II of the Social Security A ct (Federal Old-Age and Survivors Insurance Benefits) extended
b services performed by its employees and that at least two-thirds of its employees concur in the filing of the certificate. Section
1426 (1) provides that the certificate may be filed only if it is accompanied by a list containing the signature, address, and social security
jccount number, if any, of each employee who concurs in the filing of the certificate.
signature
of
employee
address
(OVER)
of
emp lo y ee
E M P L O Y E E ’S S O C I A L S E C U R I T Y
A C C O U N T N U M B E R (IF, A N Y )
I
mLUüitpmjm mssphpms,
J
Yuead&y« woveiaber 21. 1950.
r\ < —
y<f — o i ^
A3
The Secretary of the Treasury announced last evening that the tenders for
#1,100,000,000, or thereabouts, of 91-<iay Treasury bills to be dated November 24,
1950, and to mature February 23, 1951, which were offered on November 16, were
opened at the Federal Reserve Banks on November 20.
The details of this issue are as follows:
Total applied for - #1,563,335,000
Total accepted - 1,105,135,000 (includes #122,100,000 entered on a non
competitive basis ami accepted in full at
the average price shown below)
Average price
- 99•651/ Equivalent rate of discount approx.1*330% per annua
Range of accepted competitive bids:
High
Low
- 99*666 Equivalent rate of discount approx. 1*321% per annua
- 99.649
»
*
»
"
»
1.339%
(Hie entire amount bid for at the low price was accepted)
Federal Reserve
District
Total
Applied for
Total
Accepted
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
$ 16,733*000
1,117,532,000
25,103,000
54,245,000
11,775,000
9,299,000
170,295,000
14,413,000
6,290,000
25,965,000
28,003,000
34 ,122*000
1 16,783,000
684,032,000
20,103,000
54,265,000
11,775,000
9,299,000
150,295,000
14,218,000
6,290,000
25,965,000
28,008,000
84.122,000
$1,563,835,000
$1 ,105,135,000
Total
M
•
TREASURY DEPARTMENT
Information Service
Washington , d .c .
158
release
morning newspapers,
Tuesday,
N o v e m b e r - 21,1950«
S-2515
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 November 24, 199°, and to mature February 23, 1951*
which-were offered on November 16, were opened at the Federal Reserve
Banks on November 20.
The details of this issue are as follows;
Total applied for - $1,563,835*000
Total accepted
- 1,105/135,000 (includes $122,100,000
entered on a non-competitive
basis and accepted in full
at the average price shown
below)
Average price
- 99.651/ Equivalent rate of discount approx.
1.380$ pei’ annum
Range of accepted competitive bids:
-
99.666
Equivalent rate
1 .321$
- 99*649 Equivalent rate
1. 389$
High
Low
of discount approx,
per annum
of discount approx.
per annum
(The entire amount bid for at the low price was accepted)
Total
Accepted
Total
Applied for
Federal Reserve
District
84,122,000
16 ,783 ,000
684, 032,000
20,103, 000
54, 245, 000
11 ,775, 000
9, 299,
150,295,
,
14,
290
,
,
25, 965 ,
28,008,
.
aft.
$1,563,835,000
$ 1 ,105 ,135,000
$
Boston
New Y o r k
Philadelphia
Cleveland
16,783,000
1 ,117 ,532,000
25,103,000
54.245.000
.
11 775.000
Richmond
9.299.000
170 ,295,000
14.418.000
6 .290.000
25 .965.000
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
.
2 8 008.000
TOTAL
0O0
$
000
000
218 000
000
6
000
000
122 000
- 3 &fegg&
any State, or any of the possessions of the United States, or by any local tax
ing 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 U2 and 117 (a) (1) °£
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 in
clude in his income tax return only the difference between the price paid for
such bills, whether on original issue or on subsequent purchase, and the amount
actually 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. Copies
of the circular may be obtained from any Federal Reserve Bank or Branch.
-
2
-
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 November 30, 1950
M
or in a like face amount
----
able funds
—
t in cash or other immediately avail-
of Treasury bills maturing N o v e m b e r ^ , 1QC;n-
Cash and exchange tenders will receive equ^l treatment.
Cash adjustments will be
made for differences between the par value of maturing bills accepted in exchange
and the issue price of the neYf 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
.
IBI
201 ^
Mrs. Barker
M r . Bartelt
M r . Bray
Mr^Caheen
"Mr. Dillon^
Mrs. Dubinsky
Mr, Ecker-Racz
M r , Foley
M r . Graham
M r , Haas
Miss Kelly
M r , Thomas Lynch
M r , Martin
M r , Parsons
M r . Rivers
M r , Siler
Miss Simpson
Mrs. Eliz. Smith
£66
PROM:
H
Leon M. Siler
Room 5420
gxktfcitxä
TREASURY DEPARTMENT
Washington
a r
FOR RELEASE, MORNING NEWSPAPERS,
Thursday. November 2^. 1950 _•
-------
/Ù
S T
The Secretary of the Treasury, by this public notice, invites tenders for
ft l 100.000.000 . or thereabouts, of
91
-day Treasury bills, for cash and
'..1 - i sST*---in exchange for Treasury bills maturing
November^0. 1950
+
^
.
.
> t0 13(3 issuea on
a discount basis under competitive and non-competitive bidding as hereinafter
provided.
The bills of this series will be dated
November
1Q5Q----- > anc*
*
¥0.11 mature
interest.
March 1,
1951
, 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
Trill
closing hour, two
be received at Federal Reserve Banks and Branches up to the
o'clock
p.m., Eastern Standard time,
Monday, November 27,
Tenders will not be received at the Treasury Department, Washington.
1950-
Each tender
must be for an even multiple of $1,000, and in the case of competitive tenders
the price offered must be expressed on the basis of 100, with not more than three
decimals, e. g., 99.925.
Fractions may not be used.
It is urged that tenders
be made on the printed forms and forwarded in the special envelopes which will
be supplied by Federal Reserve Banks or Branches on application therefor.
Others than banking institutions Y/ill 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 from others must be accompanied
by payment of 2 percent of the face amount of Troasury bills applied for,
TREA SU RY DEPARTM EN T
Information Service
R E L E A S E M O R N I N G NEWSPAPERS,
Thursday, November, 23, ,1950 .
WASHINGTON, D .C .
S- 25I6
162
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 November 30
1950, to oe issued on a discount basis under competitive and non—
competitive bidding as hereinafter provided.
The bills of this
series will be dated November 30 , 1950j and will mature March 1
1?5-i-J when the face amount will be payable without interest. They
A?suec^ in Nearer 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 tne closing hour, two o'clock p.m., Eastern Standard time
Monday, November 27 , 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., 99.9 25- Fractions may not be used.
It is
urged that tenders be made on the printed forms and forwarded in the
.special envelopes which will be supplied by Federal Reserve Banks or
Branches on application therefor.
Others than banking institutions will 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 from others must be accompanied by payment of. 2 percent of
the face amount of Treasury bills applied for, unless the tenders
are accompanied by.an express guaranty of payment by an incorporated
bank or trust company.
,,
Immediately after the closing hour, tenders will be opened at
the Federal Reserve Banks and Branches, following which public
announcement will be made by the Secretary of the Treasury of the
amount and price range of accepted bids.
Those submitting tenders
will be advised of the acceptance or rejection thereof.
The
Secretary of the Treasury expressly reserves the right*to accept or
reject any or all tenders, in whole or in part, and his action in
any such respect shall be final.
Subject to these reservations
non-competitive tenders for $ 200,000or less without stated price
trom 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 November 30, 1950, in cash
or other immediately available funds or in a like face amount of
Treasury bills maturing November 30 , 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, a s •amended by Section 115 of the Revenue Act of 1941,
the amount of discount at which bills issued hereunder are sold
shall not be considered to accrue until such bills shall be sold,
redeemed or otherwise disposed of, and such bills are excluded
from consideration as capital assets.
Accordingly,. the owner of
Treasury bills (other than life insurance companies) issued here
under need include in his income tax return only the difference
between the price paid for such bills, whether on original issue
or on subsequent purchase, and the amount actually received either
upon sale or redemption at maturity during the taxable year for
which the return is made, as ordinary gain or loss.
Treasury Department Circular No. 4l8, as amended, and this
notice, prescribe ^the terms of the Treasury bills and govern the
conditions of their issue. Copies of the circular may be obtained
from any Federal Reserve Bank or Branch.
0O 0
promise to export the samples when he leaves the country to return home.
Furthermore, presentation of a certified copy of such a "baggage
declaration and either a descriptive list or a consular invoice will
"be sufficient for outward and in-hound clearance^rof samples of the
traveler who makes side trips into Canada and Mexico to take orders
in those countries. \
^9 *
r-
had, tq go through ex-
tea. rpnfcJLapfl
nnirhhnri'
nQ
By eliminating ttoiiB» requirements, Customs not
/
A
only facilitates international trade, hut also reduces its own admin
istrative work.
nnfl tup
When the salesman is finally ready to leave the United States, he
will present his samples and customs documents to customs at the port
ll
of departure, and he relieved of his obligation, provided the legal re
quirements have heen met.
The
out ttLwtr"5ollActors ox,^@usi;omsiwill he
on the jKbeft to see/that oaXT bona fidq/Coi§B^TCiai -crave^rs- samples
Baragased P ress Itolaase
\The Bureau o f ^ ^ r n B ^ m f took action to smooth t&r^co^rw&^£
\
■#^\
jr
)
Jr
/
the graveling salesman engaged in international tra^^and at the sanp
relieved itself of the necessity for doingOiertain paper worj
\
Jr
Hereafter. the foreign salesman1s JrLtten word will ¿BBsfcfcavi
when he takes advantage
which
of theoiew regulations
for temporary entry, f r ep^f duty, of accompanying samples.*^
^Bjia^BSaiswwiwsfMeMsasBSBioffisawsiaeWipp^wi»^^
Cash or suret^totalingst^les-st one and one-fourth the ajkount
JF"tut*?
„
of the estimate^duty on the a r t i c l e i ^ ^ - ^ m ^ ^ lyili" he '»oq^drody'— *S©w»
future tri^SL^^may he the penal t y ^ o r
failur^to export the samples within the prescrilJhc^time >
other
Prank Dow, Commissioner of Customs, said the new provision, em
bodied in Treasury Decision
$2612, approved by the Acting Secretary
of the Treasury ^ applies to samples accompanying a commercial traveler
which are examined and cleared on a baggage declaration at the pier.
The previous ceiling of $500 value for merchandise thus entered in
formally has been removed, the Commissioner stated.
In the future the traveling salesman may present either a descrip
tive list of his articles or a certified consular invoice, depending
upon the value of the samples.
is more than $500.
The invoice is required if the value
The salesman will be permitted to make a personal
bond, requiring no cash or surety.
In effect, his personal bond is a
, . ATE RELEASE
I flay, November 24, 1950«
S-2517
The Bureau of Customs today took action to smooth the course of
the traveling salesman engaged in international trade, and at the same
time relieved itself of the necessity for doing certain paper work*
Hereafter, under new regulations, a foreign salesman*s written
or
word will
temporary entry, free of duty, of accompanying
samples of merchandise*^
Cash or surety totaling at least one and one-fourth the amount
of the estimated duty on the articles has been required heretofore*
Loss of the^WBjK^entry privilege on future trips may be the penalty for
failure to export the samples within the prescribed time, or for other
willful violations of the Customs Regulations*
TREASURY DEPARTMENT
Information Service
Washington , d .c .
166
IMMEDIATE RELEASE
Friday, November 2%, 1950.
S -2517
Th© Bureau of* Customs today took action to smooth the
course of the traveling salesman engaged in international
trade, and at the same time relieved itself of the necessity
for doing certain paper work.
Hereafter, under new regulations, a foreign s a l e s m a n s
written word will suffice for temporary entry, free of duty,
of accompanying samples of merchandise.
Cash or surety
totaling at least one and one-fourth the amount of the
estimated duty on the articles has been required heretofore.
Loss of the free entry privilege on future trips may be
the penalty for failure to export the samples within the pre
scribed time, or for other willful violations of the Customs
Regulations.
Frank Dow, Commissioner of Customs, said the new pr o
vision, embodied in Treasury Decision 52612, approved by
the Acting Secretary of the Treasury, applies to samples
accompanying a commercial traveler which are examined and
cleared on a baggage declaration at the pier.
The previous
ceiling of $500 value for merchandise thus entered informal
ly has been removed, the Commissioner stated.
In the future the traveling salesman may present either
a descriptive list of his articles or a certified consular
invoice, depending upon the value of the samples.
The invoice
is required if the value is more than $500.
The salesman will
e permitted to make a personal bond, requiring no cash or
surety,
in effect, his personal bond is a promise to export
the samples when he leaves the country to return home.
Furt h e r m o r e , p r e s e n t a t i o n of a c e r t i f i e d c o p y of such a
k&SS&SO d e c l a r a t i o n and e i t h e r a d e s c r i p t i v e list or a c o n s u l a r
invoice will be s u f f i c i e n t for o u t w a r d and i n - b o u n d c l e a r a n c e
1G7
-
2
-
of samples of the traveler who makes side trips into Canada
and Mexico to take orders in those countries.
By eliminating
previous requirements, Customs not only facilitates interna
tional trade, but also reduces its own administrative work.
When the salesman is finally ready to leave the United
States, he will present his samples and customs documents to
Customs at the port of departure, and be relieved of his
obligation, provided the legal requirements have been met.
0O0
f■
4»
b'Si connection with this investigation« ®e are cooperating
closely with the Department of Justice,
t m U g nnmpi»t»fl »to that JrrpriTtBa.iii'tfv the Cosssissianer said.
5
conclusive, the maintenance of public confidence in the integrity
of the Internal Revenue Service required that certain
employees be suspended, pending completion of the investigation.
Accordingly, Arnest M# Schino, Deputy Collector of Internal
Revenue at San Francisco, and John B* Williams, of the Accounts and
Collections bait at Los Angeles, have been suspended in connection
with the Mountain City Consolidated Copper Company inquiry*
William D. Malloy, Deputy Collector at San Francisco* has been
, ,
,,
-J
_ ,,
suspended pending completion of an investigation of nilagurd-ticmnftied..
As
erwor I^^higrai
Commissioner Schoeneman stated that if the investigation
impels criminal or other action, such action will be taken promptly*
If the investigation discloses no evidence of wrongdoing on the
part of the employees, immediate steps will be taken to restore
them to duty*
~
liu
|n
o u
Ceorge J» Schoencnaa, Casaisslsaei* of Internal Eeveaue*
stated today that additional agents have been assigned to
the intensive Investigation which has been in progress
concernisi: charges involving Bureau of Internal ¿avenue
employees in alleged improper transactions with underworld
characters In Hevada and California.
Ihe charges have to do
with the sale of stoek la the fountain City Consolidated
Copper Company of Hevada,
v
171
IMMEDIATE RELEASE,
Friday, November 24., 1950.
S-251S
George J. Schoeneman, Commissioner of Internal Revenue, stated
today that_additional agents have been assigned to the intensive
investigation which has been in progress concerning charges involving^ Bureau of Internal Revenue employees in alleged improper trans
actions with underworld characters in Nevada and California, The
charges have to do with the sale of stock in the Mountain City
Consolidated Copper Company of Nevada,
#He said that while the facts so far developed were not con
clusive, the maintenance of public confidence in the integrity of the
Internal Revenue Service required that certain employees be suspended
pending completion of the investigation.
penaea,
Accordingly, Ernest M 0 Schino, Deputy Collector of Internal
Revenue^at San^Francisco, and John B. Williams, of the Accounts and
Collections Unit at Los Angeles, have been suspended in connection with
the Mountain City Conso3_idated Copper Company inquiry.
William D. Malloy, Deputy Collector at San Francisco, has been
suspended pending completion of an investigation of another case.
Commissioner Schoeneman stated that if the investigation
impels criminal or other action, such action will be taken promptly.
If the investigation discloses no evidence of wrongdoing on the part
of the employees, immediate steps will be taken to restore them to
duty.
In connection with this investigation, we are cooperating
closely with the Department of Justice," the Commissioner said.
oOo
RELEASE MORNING K i l S P A P M ,
Tuesday. November 20» 1950»
ST I
The Secretary of the Treasury announced last evening that the tenders for
IX ,100 ,000,000, or thereabouts, of 91-day Treasury bills to be dated November 30,
1950 , and to mature Harch 1 , 1951# which were offered on November 23 , were opened
at the Federal Reserve Banks on November 27 •
The details of this issue are as follows:
Total applied for - #1,705,212,000
Total accepted
- 1,101,205#000 (includes #101,804,000 entered on & non
competitive basis and accepted in full at
the average price shown below)
Average price
- 99.650 / Equivalent rate of discount approx. 1.383$ per annua
Range of accepted competitive bids: (Excepting one tender of 4100,000)
High
Low
- 99*660 Equivalent rate of discount approx. 1.345% per annum
-99.649
"
#»
»
«
«
1 ,389% «
(59 percent of the amount bid for at the low price was accepted)
Federal Reserve
District
Total
Applied for
Total
Accepted
Boston
New fork
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
6
$
Total
7 ,240,000
1,289,438,000
31,757,000
26 ,224,000
9,555,000
7 ,011,000
197,375,000
22,045,OCX)
4 ,205,000
2 1 ,660,000
19,985,000
68,717,000
6 ,240,000
782,758,000
19,297,000
25,983,000
9,473,000
6,601,0C»
143,159,000
16 ,490,000
4 ,103,000
21,660,000
19 ,885,000
45,556,000
41,705,212,000
$1 ,10 1 ,205,000
173
RELEASE M O R N I N G N EWSPAPERS,
Tuesday, N o v e m b e r 28, 1950*
S-2519
The S e c r e t a r y of the T r e a s u r y a n n o u n c e d last e v e n i n g that the
tenders for $ 1 , 1 0 0 , 0 0 0 , 0 0 0 , or thereabouts, 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 N o v e m b e r 30, 1.950, and to m a t u r e M a r c h 1, 1951, w h i c h
were o f f e r e d o n N o v e m b e r 23, wer e o p e n e d at the F e d e r a l R e s e r v e
Banks o n N o v e m b e r 27.
The d e t a i l s
of this issue are as follows:
T o t a l a p p l i e d for m $ 1 , 7 0 5 , 2 1 2 , 0 0 0
Total accepted
1,101,205,000
(includes $ 1 0 1 , 8 0 4 , 0 0 0
e n t e r e d on a n o n - c o m p e t i t i v e
b a sis a nd a c c e p t e d in full
at the a v e r a g e p r i c e s h o w n
below)
- 9 9 . 6 5 0 / E q u i v a l e n t rate of d i s c o u n t approx.
1 .383$ P © p a n n u m
Average price
Range
of a c c e p t e d c o m p e t i t i v e bids:
High
( E x c e p t i n g one t e n d e r of
$10 0 , 0 0 0 )
- 9 9 . 6 6 0 E q u i v a l e n t rate of d i s c o u n t approx.
1.34 5 $ p e r a n n u m
- 9 9 . 6 4 9 E q u i v a l e n t rate of d i s c o u n t approx.
1 .389 $ p e r a n n u m
Low
(59 p e r c e n t of the a m o u n t b i d for at the lo w p r i c e was acc e p t e d )
Federal R e s e r v e
Pistrict_________
Total
A p p l i e d for______
Boston
New Y o r k
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San F r a n c i s c o
$
7.240.000
1 289.438.000
31.757.000
26.224.000
9.555.000
7.011.000
197.375.000
22.045.000
4,205,000
21 .660.000
19 ,985,000
68,717,000
■AL
$1
705 .212.000
0 O0
Total
Accepted
$
6,240,000
782 ,758,000
19 .297.000
25 .983.000
9 .473.000
6 .601.000
1^ 3 ,159,000
16 .490.000
4 .103.000
21 .660.000
19 .885.000
45 .556.000
$ 1 ,101 ,205,000
H
Comparison of principal items of assets and liabilities of national banks - continued
(In thousands of dollars)
•
:
t
Oct. H,
1950
LIABILITIES
Deposits of individuals, partnerships, and corporations:
Demand. ........................... • $**8.729.Usi
Time........ ........................ 18,936,109
Deposits of U. S. Government..........
1,820,282
Postal savings deposits ..............
6,221
Deposits of States and political
5.356.U78
subdivisions. ...................
Deposits of banks * . . .............. . 7.976,705
Other deposits (certified and cashiers' checks, etc.)
_ 1 .1 2 9 ,0 5 1
Total deposits.
8 3 ,9 5 6 , 3 2 7
Bills payable, rediscounts, and Other
1 0 0 ,9 2 2
liabilities for borrowed money . . . .
1
,
2 *K),1 9 U
Other liabilities ....................
Total liabilities, excluding
capital accounts............ .
• 8 5 . 2 9 7 .UU3
CAPITAL ACCOUNTS
Capital stock:
Preferred ........ ............
1 5 .* * 5 3
Common
• • • • • * 1 . 9 7 H.H8 8
Total.
• 1 . 9 8 9 . 9 U1
S u r p l u s ........................ .. . . 2 . 7 9 1 . 3 U9
Undivided profits. ................... • 1 , 2 2 9 . 9 3 2
Reserves........ ................... • .. 3 1 6 , 0 3 6
Total surplus, profits, and
reserves .................• • • •
. U,3 3 7 , 3 1 7 .
Total capital accounts............
6 .3 2 7 .2 5 8
Total liabilities and capital
accounts # # •
+ • • • • • ♦ 9i.62U.70i
Percent
Ratios:
U. S. Gov’t securities to total assets
39*08
29.65
Loans and discounts to total assets
7-5H
Capital accounts to total deposits
June 3 0 » s
1950
:
Bov. 1,
1949
: Increase or decrease: Increase or decrease
: since June 30, 1950 : since Bov. 1. I9 H9
:
Amount : Percent: Amount : Percent
$U6 , 7 8 7 , 9**2 $U6 ,U1 5 , 9 9 7 $l. 9 Ul, 5 3 9
u.15
19, a s , 390 18,935,621
-280,281 -1.H6
.576,Uli -2U.05
2,021,803
2.396,693
805 1H.86
5.U16
3 ,7 3 5
5,683,478
7 .3 6 3 . 2 5 U
1.20U.61S
,
8 2 6 5 9 ,7 9 1
5,182,966
7 ,7 1 7 ,1 3 9
1
-327,000
613.U51
- 5 .7 5
. 1 0 5 . 5 2 U ....... -75,567
1 ,2 9 6 ,5 3 b
,
- 6 .2 7
8 1 3 8 2 ,7 8 5
U
2 .7 8 3
1 0 5 6 .9 7 1
912,102
. Ul,5 U5
82,H6Hf962
.
83 7
1 6 ,5 6 7
1 9 6 3 37
. . U
1 .9 7 9 . 9 U
1
2 . 7 7 0 .6 3 0
1 ,1 3 3 ,1 9 0
3 1 1 .3 0 6
U,215,126
6 ,1 9 5 ^ 0 6 7
89,936.612
76.139
183,223
1 7 0 ,0 7 5
.
1 5 5 5 .8 9 8
-1 ,1 1 4
ll.llU
2 0 ,7 7 3
1.893.13U
1 ,9 1 3 ,9 0 7
2 , 5 2 1 ,3 7 7
1 , 2 1 3 ,7 7 3
335,05U
$2,313,U8U
2.H88
-201,521
2.H86
1 7 3 ,5 1 2
259,566
8 .3 3
1 .5 7
2 3 ,5 2 7
2
.573,9*2
1 7 .3 3
2
, 8 3 2 ,4 8 1
.5 7
.5 1
20,719
9 6 . 7U
2
U. 7 3 0
.75
8.5U
1 .5 2
7 6 ,0 3 4
-
2 .9 0
1 3 2 ,1 9 1
2 .1 3
267,113
343,147
#HH9 , 0 7 3
1 6 8 8 .0 8 9
1 .8 8
3.175.628
27.U3
7 .U9
26.90
7-35
U3 .3U
BOTE:
3 .9 7
-5.68
1 2 2 ,1 9 1
,
3.U3
10.71
,
Ì U.U1
Percent
.1b
1 6 .1 5 9
1 9 ,0 1 8
5 98
88
2 .1 3
3
2 6 9 ,9 7 2
4 0 7 0 ,2 0 4
Percent
Hi. 86
3 .3 5
3.36
-5,320 -■25.61
8 1 ,3 5 4
4.30
-6 .7 2
1 0 ,0 0 0
.01
-9.97
66.96
- 6 9 . 1 5 3 --ilO.66
328,092 3 5 - 9 7
3 0 7 .2 2
1.86
4 .9 8
Minus sign denotes decrease
1 .3 3
6.56
5 .7 3
3.59___
x D
Statement showing comparison of principal items of assets and liabilities of active national banks ,
as of October 4, 1950» June 30» 1950,
November 1, 194-9
3
(In thousands of dollars)
•
Oct. 4,
1950 ’
Number of b a n k s .......... .. . • * •
i
:
4,975
June 30, :
1950
:
4 ,9 7 7
Increase or decrease :Increase or decrease
: since June 30. 1950 :since Nov. 1 . 1 9 4 9
: Percent
Percent: Amount
i
: Amount
s
•
•
•
Nov. 1.
1949
4 ,9 8 8
-.04
-2
ASS STS
Commercial and industrial loans. • • $11,927.53«
6,708,572
loans on real estate
5,584,702
Consumer loans to individuals » . . .
3.291.226
All other loans, including overdrafts
2
7 ,5 1 2 .0 3 s
Total gross loans . . . . . . . .
343.977
Less valuation reserves + » • #
27.168.061
U. S* Government securities:
Direct obligations * .. .........
Obligations foliar guaranteed . •
Total U. S. securities . . . .
Obligations of States and political
subdivisions . ...............
Other bonds, notes, and debentures ,
Corporate stocks, including stocks
of Federal Reserve banks . . . . .
Total securities . . . . • • • •
Total loans and securities . . •
Currency and coin • • . • • • • •
•
Reserve with Federal Reserve banks .
Balances with other banks • • • . .
Total cash, balances with other
banks, including reserve balances
and cash items in process of
collection . . . . . . . . . .
Other assets
Total assets .................
3 5 ,8 0 6 , 3 1 2
$1,656,495
333,839
522,247
-9.802
2 ,5 0 2 , 7 7 9
, 6,598
2,496,181
1 6 .1 3
38,332,370
U , 842,915
(
1.569
-1,841,3^6
-4.89)
77.21)
-4.89
*1 0 ,2 7 1 , 0 4 3
6 ,3 7 4 . 7 3 3
5 ,0 6 2 , 4 5 5
5 .3 0 1 . 0 2 8
2 5 ,0 0 9 , 2 5 9
3 3 7 .3 7 9
24.671,880
$23.438,583
38,332,370
5.588
35,809,900
37,649,227)
2.019)
37Æ£P5"
4 ,5 6 7 . 3 3 7
2 ,3 7 0 , 1 7 3
4,294,138
2,127,187
3.718,789
2 ,0 2 7 , 7 6 9
273,199
242,986
178.578
42.925.988
70,09h,0h9
172.098
44.244.669
68.916,5*6
1 6 5 .2 1 6
6.480
-1.318.681
1,177,500
1,164,852
10,802,333
8.446.917
959,56?
10,451,764
8.590.839
20.4l4.102
1 .1 1 6 . 5 5 0
9 1 ,6 2 4 , 7 0 1
1 9 .9 6 2 . 1 7 2
1.057.891
8 9 ,9 3 6 , 6 1 2
44.244.144
67,682,727
1,068,738
10,608,750
7.999,358
19.676.846
1.089,.5P0
8 8 ,4 4 9 , 0 7 3
205,283
390.569
-103.922
-13
- .2 6
5.24
1 0 .3 2
-.30
10.01
1.96
10.12
-2 ,5 2 2 , 4 7 0
-6 . 5 8
- 2 ,5 2 2 , 4 7 0
-6.58
:
1 3 .3 6 2
-2-98
1.71
- 1 .3 1 8 , 1 5 6
2,411,322
21.39
3*35
9 6 ,1 1 4
- 1 .2 2
451.930
58,659. _
1,688,089
15.91
848,548
342,404
6 .3 6
11.42
3 .7 7
$3 .7 2 9 . 4 7 8
2 .2 6
5 .5 U
1 .8 8
193.583
^7,559
737.256
27.050
3 ,1 7 5 , 6 2 8
22.82
16.89
8.09____
-2.98
3.56
8.99
1.82
5 . 5 9 ..
3.7-5____
2.48
3.59
176
TREASURY DEPARTMENT
COMPTROLLER OF THE CURRENCY
Washington, D. C.
FOR RELEASE, MORNING NEWSPAPERS
Thursday, November 30, 1950
________________________________
S.
2520
The Comptroller of the Currency today announced the results of
the October 4th Call on all National Banks, and simultaneously point
ed out their inflationary significance in a letter sent by him to
the Boards of Directors of all such banks (copy attached).
The returns covered the *<-,975 active national banks in the United
States and possessions. The total assets of national banks on Octo
ber 4, 1950 amounted to more than $91,000,000,000. The assets were
nearly $ 2 ,000,000,000 over the amount reported by the 4,977 banks
on June 30, 1950, the date of the previous call, and $3,000,000,000
more than reported by the 4,988 active banks as of November 1 , 1949,
the date of the corresponding call a year ago.
The deposits of the banks on October 4, 1950 were nearly
$84,000,000,000, an all-time high. They increased $1,300,000,000,
since June and $2,600,000,000 since last November. Included in the
recent deposit figures were demand deposits of individuals, partner
ships, and corporations of $48,730,000,000, which increased nearly
$2,000,000,000, or 4 percent, since June 30, and time deposits of
individuals, partnerships, and corporations of $ 18 ,938,000,000, a
decrease of $280,000,000. Deposits of the United States Government
of $1,820,000,000 were $576,000,000 less than in June; deposits of
States and political subdivisions of $5,356,000,000 showed a decrease
of $ 327 ,000,000; and deposits of banks of $ 7 ,977 ,000,000 were
$613,000,000 more than in June. Postal savings were more than
$ 6,000,000, and certified and cashiers' checks were $ 1 ,129 ,000,000,
Net loans and discounts on October 4, 1950 were $27,168,000,000,
another all-time high figure. They were $2,500,000,000, or 10 percent,
in excess of the amount reported for June 30, 1950, and l6 percent more
than the amount reported in November last year. Commercial and indus
trial loans of $ 1 2 ,000,000,000 were 16 percent greater than three months
previously; loans on real estate of $ 6,700,000,000 were up 5 percent in
the period; consumer loans were $ 5 ,600,000,000 and were up 10 percent,
while all other loans of $ 3 ,300,000,000 showed a slight decrease in the
period. The percentage of loans and discounts to total assets on Octo
ber 4, 1950 was 29.65 percent, in comparison with 27.43 percent on
June 30 last, and 26,50 percent in November 1949.
177
-
2
-
The Comptroller emphasized that these figures should be viewed in
the light of the open letter which he, jointly with other federal and
state bank supervisory authorities, addressed to all banks in the United
States on August 1+, 1950, advising them of rapid inflationary develop
ments in the country’s economy and asking the cooperation of their
officers in applying voluntary restraints in the credit field. The
figures indicate clearly that inflationary pressures are becoming
increasingly strong and that the need for voluntary restraints is now
greater than ever.
Investments of the banks in United States Government obligations
(including $3*500,000 guaranteed obligations) on October k aggregated
$ 35 *800,000,000, which is a decrease of nearly $ 2 ,000,000,000, or 5
percent, since June, and a decrease of $2,500,000,000, or more than
6 percent, in the year. These investments were 39 percent of total
assets, compared to 1+3 percent a year ago. Other bonds, stocks and
securities of $7*116,000,000, which included obligations of States
and political subdivisions of $ 1+, 567*000,000, were $ 500,000,000, or
8 percent, more than in June, and $1,200,000,000, or 20 percent, more
than held a year ago. The total of securities held, amounting to
$1+3 ,000,000,000, was about 3 percent less than the amount reported
for both June last and November 191+9»
Cash of $1,165,000,000, reserves with Federal Reserve banks of
$ 10 ,802,000,000 and balances with other banks (including cash items
in process of collection) of $ 8,1+1+7 *000,000, a total of $ 20 ,l+ll+,000,000,
showed an increase of $1+52,000,000 since June.
The unimpaired capital stock of the banks on October 1+, 1950 was
$1,990,000,000, including $15,000,000 of preferred stock. Surplus
was $ 2 ,79 1 *000,000, undivided profits $ 1 ,230 ,000,000 and capital re
serves $316,000,000, or a total of $1+, 337,000,000. Total capital
accounts of $ 6,327 *000,000, which were 7 *5*+ precent of total deposits,
were $132,000,000 more than on June 30 last when they were 7.1+9 percent
of total deposits.
Statement showing compaiison. of* principal items of* assets and liabilities of* active national banks
as of October %9 1950, June 30, 1950, and November 1, 1949
(In thousands of dollars)
:
:
Number of banks * • • • * • * * • •
oopmc«
iaiocrio
Commercial and industrial loans • * *
Loans on real estate . . • « • • » •
Consumer loans to individuals • * • *
All other loans, including overdrafts
Total gross loans * • • • • • .
Less valuation reserves . . . •
Net loans . . . . . . . . . •
U. S* Govemmoit securities:
Direct obligations . • • • • • •
Obligations fully guaranteed • •
Total U* S* securities • • • •
Obligations of States and political
subdivisions
•
Other bonds r notes, and debentures •
Corporate stocks, including stocks
of Federal Reserve banks • . • • •
Total securities . . . . * • • #
Total loans and securities * • •
Currency and coin • • • • • • * • * •
Reserve with Federal Reserve banks •
Balances with other banks • * • • • ♦
Total cash, balances with other
banks, including reserve balances
and cash items in process of
collection ...................
Other assets • • « • • * . . • • • •
Total assets • • • * . . • • • •
Oct. 4,
19 50
*
:
4,975
#11,927,538
6,708,572
5,584,702
3 ,291,226
27 ,512 ,03c
343,977
2 7 ,168,061
35 ,806,312
June 30, :
1950
:
4,977
.^10,271,043
6,374,733
5,062,455
3 ,301,028
25,009,259
^37,379
24,671,880
Nov* 1,
1949
Increase or decrease : Increase or decrease
: since June 30, 19 50 : since Nov. 1, 1949
: Percent
Percent: Amount
Amount
:
4,988
«23,438,583
-2
'*1 ,656,495
333,839
522,247
-9,802
2 ,502,779
6,598
2,496,101
10 .0 1
1.9 6
10 .12
-¿.89)
77.71)
-¿.89
37,649,227)
2,019)
37,651,246
38,332,370
38,332,370
(-1,842,915
(
1,569
-1,841,346
4,567,337.
2,370,173
4,294,138
2,127,187
3,718,789
2,027,769
273,199
242,986
178,578
¿2,925,988
70,094,049
1 ,164,852
10,802,333
8,446,917
172,098
44,244,669
68,916,549
959,569
10,451,764
0 ,ern
0
J 5oqn
•->2
165,216
6,480
44,244,144
67,682,727
1,068,738
10,608,750
7,999,358
-1 ,318,681
1,177,500
205,283
350,569
-103,922
20,414,102
1,116,550
91,624,701
19,962 ,172
19,676,84.6
1,089,500
88,449,073
451,930
58,659
1,688,089
3,588
35,809,900
1,057,891
89,936,612
-.04
-13
-*26
16.13
5,24
10*32
-,30
13,729,478
15*91
-2,522,470
- 6.58
-2,522,470
- 6.58
3,1.42
§¿8,548
342,404
22.82
16.89
3.77
-2.98
1.71
21*39
3*35
- 1.2 2
-1 ,318,156
2 ,411,322
96,114
193,583
447,559
6.36
2.26
5.54
1.88
13.362
737 ,256
27,050
3,175,628
8.09
-2.9 8_
3.56
8*99
1.82
5.59_
3.75
2.48
3.53
oo
Comparison of principal items of assets and liabilities of national banks — continued
(In thousands of dollars)
;
:
Oct. b,
I95O
LIABILITIES
Deposits of individuals, partnerships, and corporations:
~ ~ - jr —
---Demand. • • • * « . * • » < * * ... . . . . ..$bs,729 ,b8l
. . • . 18 ,938,109
Time« •
1,820,282
Deposits of U* ' S* Government. . . . *
6,221
Postal savings deposits * • * • « * *
Deposits of States and political
. . . .
5 ,356,1+73
subdivisions.
Deposits of banks . #■ ■* -# • * . . . .
7 .976,705
Other deposits (certified and cash1,129,051
iers* checks, etG.) • * . . ... . .
Total deposits . • . * •# . . . . . S3.956,327
Bills payable, rediscounts, and other
liabilities for borrowed money. . .
100,922
I,2b0 .l9b
Other l i a b i l i t i e s , * • . . . . . . .
Total liabilities, excluding
capital accounts.* . . * . . . .
85,297,^3
CAPITAL ACCOUNTS
Capital stock:
Preferred. . • ♦ . * . * . . . . . .
15 ,>+53
I,97b,b88
.Common .•• . . «- * * * . •
Total « • * • * .
. , ... . ,
1,989,91+1
SUP p l u s *' #'• *•■ • * »• •••
* . . . .
2 ,791,3^9
1,229,932
Undivided profits • •
* • .. . . . . . .
316,036
Reserves. • * •
* * * • ... . . .
Total surplus, profits, and
reserves * • • • » * , ... . . . . . >+,337,3X7
Total capital accounts . . . ... . .
6,327,258
Total liabilities and capital
... .<
. 9 1 .62b, 701
accounts » • • • . . * • .
Percent
Ratios: ,
U. S. Gov*t securities to total assets 39*08
Loans and discounts to total assets
29*65
7 .5b
Capital accounts to total deposits
”~r~
: June 30*
:i I95O
Nov* 1,
19^9
: Increase or decrease : Increase or decrease
: since June 30, 1950 : since Nov. 1, 19^-9
: Amount
: Percent * Amount iPercent
$2 ,313 ,b8b
2 ,b88
- 201,521
2 ,b86
b -98
$>+6,787 ,91+2 $1+6 ,1+15,997
19 ,218,390 18,935,521
2 *021,803
2 ,396,693
5 ,1+16
1 3,735
$1 ,91+1,539
-280,281
- 576,1+11
8O 5
b .15
-l.b6
- 2b . 05
ib. 86
5 ,182,966
-327,000
613 ,1+51
- 5.75
173,512
3*35
8.33
259,566
3.36
- 75,567
1 ,296,536
- 6.27
23,527
2 ,573 ,51+2
5,683,1+73
7,363,251+
7,717,139
l,20b,6l8
32 ,659,791
81,382,735
21+.7S3
1,056,971
912,102
183,223
76,139
307.22
17.33
83.71+1,51+5
82,b6b ,962
1,555,898
1,86
16,567
1 ,963,371+
311,306
20,773
1 ,893,131+
1,913,907
2,521,377
1,213,773
335 ,051+
b, 215,126
6,195,067
89,936,612
1,979,91+1
2 ,770,630
1,133,190
Percent
bl .86
27-1+3
7 .1 + 9
1 ,105 ,521+
170,075
1.5 7
.0 1
-9*97
66.56
2 .13
3.16 ’
- 69.153 --bo«66
328,092
35,97
2 ,832,b81
3 ,1+3
1+.730
1.5 2
-5,320 --25*61
b .30
81,351+
76,03l+~ 3*97
269,972 10 .7 1
1*33
16,159
- 19,018 - 5*68
b, 070,20b
5 ,98++,1 1 1
122,191
132,191
2.90
2 .13
267,113
31+3+11+7
38,1+1+9,073
Percent
1+3 .31+
1,688,089
1.88
3.175,628
26.50
- 1 ,1 1 b
1 1 ,1 1 b
10,000
20,719
96,71+2
NOTE:
- 6.72
•57.
*51
*75
8.5b
Minus sign denotes decrease
6 -5 6 ..
5,73
3*59
1—i
7,35
CD
180
TR EA SU R Y DEPARTM EN T
COMPTROLLER OF THE CURRENCY
W A SH IN G TO N
25
A D D R E S S R E P L Y TO
■COMPTROLLER O F THE C U R R E N C Y '*
November 30, 1950
To the Boards of Directors
of All National Banks:
On August *4-, 1950 we participated in addressing
an open letter to all banks in the United States advis
ing them of rapid inflationary developments in the coun
try’s economy and asking the cooperation of the bankers
in applying voluntary restraints in the credit field.
The attached press release represents a distillation of
the information contained in the call reports of all na
tional banks as of October
1950. It reveals that be
tween June 30 and October ^ of this year commercial and
industrial loans in national banks increased 16 per cent,
loans on real estate increased 5 per cent, and consumer
loans increased 10 per cent. The net loans and discounts
of national banks had reached an all-time high figure on
June 30, but on October ^ they had increased an additional
10 per cent for another all-time high point.
We wish to stress the importance of these facts and
strongly urge that you carefully analyze your credit poli
cies and loan portfolios and exercise great care in extend
ing credit in order to screen out all demands which would
contribute toward an inflationary spiral.
Sincerely,
Comptroller of the Currency
Attachment
/
4? —
4
/
I M M E D I A T RELEASE,
Tuesday, November 28, 1950»
The Secretary of the Treasury today announced the breakdown, by Federal Reserve
Districts and by classes of investors, of the special purchases of Series F and Series q
Savings Bonds during the period November 1 through November 10, 1950* These bonds were
purchased pursuant to the special offering concerning which details with respect to
eligible purchasers and amounts were released on September IS* The first period of the
special offering was from October 2 through October 10, 1950* Eligible purchasers of
these classes will be permitted to purchase further amounts during the period December 1
through December 1 1 , 1950 , Inclusive, in excess of existing limitations up to a total
aggregate amount during the three periods of $100,000 in the case of eligible commercial
and industrial banks, and 1 1 ,000,000 in the case of all other eligible institutional
investors* A similar report of the results of December purchases will be announced when
figures are available*
Federal Reserve
District
Boston * • * • * • • * •
New York * * * * * * * *
Philadelphia . . . . . .
Cleveland* . ..........
Richmond • • • • • • • •
Atlanta* • » • • • • * •
Chicago* • • • • * • • •
S t • Louis* * * * * * * *
Minneapolis* * * * * * *
Kansas City* • « • • • *
Dallas * * * * * * * * *
San Francisco* * * • • •
Treasury • • • • • • * •
T O T A L ........ * .
Series F
Series G
Total
I
1,030,598.00
3 ,U7U,577.50
"817,330.00
2,286,859.00
1,032,596.00
7514,800.00
7,232,223.50
2,207,309.00
2,379,266.50
3,532,778.50
1463,795.00
1,1)88,659.00
7U.000.00
1 10,517,900
17,919,800
5,853,000
6,89U,000
8.218.U00
li,968,000
22,789,200
5,180,000
1 , 260,000
6,056,600
3 , 255,200
8,565,000
# 11,SU8,U98.00
21,39U,377.50
6,670,330.00
9,180,859.00
9,250,996.00
5,722,800.00
30,021,1)23.50
7,387,309.00
6,639,266.50
9,589,378.50
3,718,995.00
10,053,659.00
7U,000.00
t 26.77U.792.00
$10U,U77,100
Classes of Investors
Series F
Insurance companies* . . . . . . . .
Savings banks • • • • • • ........
Savings & loan associations 4
building 4 loan associations,
and cooperative banks* * * * * * *
Pension 4 retirement funds * * • • »
Fraternal benefit associations • • •
Endowment funds* • • • • • • • * • •
Trusts for charitable, educational,
religious or other public purposes,
& State 4 municipal sinking funds*
Credit unions* • • • • • • • « • • «
Commercial and industrial banks* • •
f
TOTAL
•
U,275, 906.00
Series
$131,251,892.00
G
Total
1 17,306,800
3,255,000
$ 21 , 582, 706.00
3 , 255 , 000.00
2 , 762,000
129.20U.00
U,8U2,7U5.00
9o6,UUU.5o
36,U28,900
250,500
3,57U,800
2,891,2OU.O0
Ul,271,6U5.00
1,156,9UU.50
3 ,57U,800.00
1U1 , 062.50
101,380.00
16,378,050.00
$26 , 77U.792.00
5,237,300
1,500
35,660,300
$10U,U77,100
5,378,362.50
102,880.00
52,038,350.00
$131,251,892.00
TREASURY DEPARTMENT
Washington
182
IMMEDIATE RELEASE
Tuesday, November 28, 1950«
S-2521
The Secretary of the Treasury today announced the breakdown, by Federal Reserve
Districts and by classes of investors, of the special purchases of Series F and
Series G Savings Bonds during the period November 1 through November 10, 1950.
These bonds were purchased pursuant to the special offering concerning which details
with respect to eligible purchasers and amounts were released on September 1 5 « The
first period of the special offering was from October 2 through October 10, 1950.
Eligible purchasers of these classes will be permitted to purchase further amounts
during the^period December 1 through December 1 1 , 1950 , inclusive, in excess of
existing limitations up to a total aggregate amount during the three periods of
$100,000 in the case of eligible commercial and industrial banks, and $ 1 ,000,000 in
the case of all other eligible institutional investors* A similar report of the
results of December purchases will be announced when figures are available.
Federal Reserve
District
Boston . . . .
New York . * .
Philadelphia .
Cleveland • •
Richmond . • •
Atlanta . . *
Chicago • • o
St. Louis « .
Minneapolis .
Kansas City
Dallas . . . .
San Francisco
Treasury • • •
Series F
•
«
0 o
* .
«1 e
0 0
•■
•
•
•
*
* o
© 9
•
o
6 9
TOTAL
Classes of Investors
Series G
1 ,030,598.00
3,474)577.50
817,330.00
2,286,859.00
1,032,596.00
754-,800.00
7,232,223.50
2,207,309*00
2,379,266*50
3)532)778.50
4-63,795*00
1,488,659*00
74,000.00
$ 10,517,900
17,919,800
5,853)000
6,894,000
8 ,218,400
4,968,000
22.789,200
5,180,000
4 ,260,000
6,056,600
3,255,200
8,565,000
$ 26,774,792*00
$104,477,100
$
$
-»
Series F
Insurance Companies. . . * . »
$ 4,275,906.00
Savings Banks • » * « « . o . «
Savings & Loan associations &
building & loan associations,
and cooperative banks. • • « •
129,204«00
Pension & retirement funds « ; •
4 ,842,745*00
Fraternal benefit associations •
906,444*50
Endowment funds . • <> . « * . «
Trusts for charitable, educational,
religious or other public purposes,
& State & municipal sinking funds. 141,062«50
Credit unions. . « o . . . . . .
101,380.00
Commercial and industrial banks.
16 ,378,050*00
TOTAL
Total
$26,774,792.00
548,498.00
21)394)377.50
6,670,330.00
9,180,859*00
9,250^996.00
5^722^800*00
30,021,423*50
7,387,309*00
6,639,266*50
9)589,378.50
3,718,995.00
10,053,659*00
74,000.00
j l
I ,
$131,251,892.00
Series G
Total
$ 17,306,800
3,255,000
$ 21,582,706*00
3,255,000.00
2 , 762,000
36,428,900
250,500
3,574,800
2.891.204.00
41,271,645.00
1,156,944.50
3.574.800.00
5,237,300
1,500
35.660.300
5,378,362.50
102,880.00
52,038,350.00
$104,477,100
$131,251,892.00
Immediate Release
Collectors of Internal Revenue from the 6h collection districts of
the United States met today at the Treasury in an annual conference called
by George J. Schoeneman, Commissioner of Internal Revenue,
The collectors are discussing administrative problems arising out
of the provisions of the new Revenue Act of 19$), and out of the expanded
Social Security coverage which becomes effective January 1*
Secretary Snyder, in welcoming the collectors, expressed his
gratification that the Revenue Service has kept step with other Treasury
bureaus in achieving management improvement progress in many direction»*
He cited simplification of forms and procedures, greater efficiency,
and generally better service to the public.
Commissioner Schoeneman, sa opening the first session of the
collectors, outlined operative
methods of the Revenue Service which
are scheduled for study during the three-<isy program of the ccnferaice.
TREASURY DEPARTMENT
Information Service
WASHINGTON, D .C .
184
I M M E D I A T E RELEASE,
Wednesday, November
29, 1950,
S -2522
Collectors of Internal Revenue from the 6 b
collection districts of the United States met
toaay at the Treasury in an annual conference
called by George J. Schoeneman, Commissioner of
Internal Revenue.
The collectors are discussing administrative
problems arising out of the provisions of the new
Revenue Act of 1950, and out of the expanded
Social Security coverage which becomes effective
January 1 .
Secretary Snyder, in welcoming the collectors,
expressed his gratification that the Revenue Service
has kept step with other Treasury bureaus in achiev
ing management improvement progress in many directions.
He cited simplification of forms and procedures,
greater efficiency, and generally better service to
the pu b l i c .
^Commissioner Schoeneman, opening the first
session of the collectors, outlined operative
methods of the Revenue Service which are scheduled
for study during the three-day program of the
conference.
0O0
- 3 HNMHHf
any State, or any of the possessions of the United States, or by any local tax
ing 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
lj.2 and 117 (a) (1) °£ the Internal Revenue Code,
as amended by Section 11$ of the Revenue Act of 19U1, the amount of discount at
which bills issued hereunder are sold shall not be considered to accrue until
such bills shall be sold, redeemed or otherwise disposed of, and such bills are
excluded from consideration as capital assets.
Accordingly, the owner of
Treasury bills (other than life insurance companies) issued hereunder need in
clude in his income tax return only the difference between the price paid for
such bills, whether on original issue or on subsequent purchase, and the amount
actually 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
-
MBHHM
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 B$nks and Branches, following which public announcement will be made by
the Secretary of the Treasury of the amount and price range of accepted bids.
Those submitting tenders trill be advised of the acceptance or rejection thereof.
The Secretary of the Treasury expressly reserves the right to accept or reject
any or all tenders, in whole or in part, and his action in any such respect shall
be final.
Subject to the.se 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
December 7* 1950
> in cash or other immediately avail-1
ip5 ^
able funds or in a like face amount of Treasury bills maturing December 7 1950
..... .-■ tPiypr
-i
Cash and exchange tenders will receive equal treatment. Cash adjustments will be;
Federal Reserve Bank on
made for differences between the par value of maturing bills accepted in exchange
and the issue price of the new bills.
The income derived from Treasury bills, whether interest or gain from the
sale or other disposition of the bills, shall not have any exemption, as such,
V
and loss frco 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
TREASURY DEPARTMENT
Washington
¿TZa
The Secretary of the Treasury, by this public notice, invites tenders for
$ 1 5100 5000,000
, or thereabouts, of __
in exchange for Treasury bills maturing
_-day Treasury bills, for cash and
December 7> 1950
mm
>
^
issued on
a discount basis under competitive and non-competitive bidding as hereinafter
provided.
m i l mature
interest.
The bills of this series will be dated
March
8, 1951
December^7 1 195>0
t and
when the face amount will be payaole without
They m i l be issued in bearer form only, and in denominations of
Tenders will be received at Federal Reserve Banks and Branches up to the
closing hour, two o ’clock p.m., Eastern Standard time,Monday,
December lir 19^0•
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
decimals, e. g., 99.925.
Fractions may not be used.
100 , with not more than three
It is urged that tenders
be made on the printed forms and forwarded in the special envelopes which Ti/ill
be supplied by Federal Reserve Banks or Branches on application therefor.
Others than banking institutions will 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 from others must be accompanied
by payment of 2 percent of the face amount of Treasury bills applied for,
)
TREA SU RY DEPARTM ENT
Information Service
RELEASE MORNING NEWSPAPERS,
Thursday,, November 30, 19*50 ,
WASHINGTON, D .C
188
S-2523.
The Seeretary of the Treasury, fey 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
December 7 * 1950, to be issued on a discount basis under competitive
and non-competitive bidding as hereinafter provided.
The bills of
this s e n e s will be dated December 7 * 1950, and will mature
March .
0 , 1951 3 when the lace amount will be payable without interest
l?eL n i:LL b e 'lssY ed ln
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 t° the closing hour, two' o'clock p.m., Eastern Standard time, .
Monday, December 4, 1950 . Tenders will not be received at the'
Treasury Department, Washington.
Each tender must be for an even
of $1,000, and in the case of competitive tenders the- price
offered must be expressed on the basis.of 100, with not more than
three decimals., e. g., 99 .925 . Fractions may not be used.
It is
urged that tenders be made on the printed forms and forwarded in the
special envelopes which will be.supplied by Federal Reserve Banks or
Branches on application therefor.
,
. ', others than banking institutions will 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
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.
.
i T iea?'ai e:Ly after the closing hour, tenders will be opened at
• 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
becretary of the Treasury expressly reserves the right to accept or
eject 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
trom any one bidder will be accepted in full at the average price
2
(in three dec 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 bids..
S e t t l e m e n t for
a c c e p t e d t e n ders in a c c o r d a n c e w i t h the bids 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 D e c e m b e r 7 , 1 9 5 0 , in cash
or o t her i m m e d i a t e l y a v a i l a b l e funds or i n a like face a m o u n t of
T r e a s u r y b i lls m a t u r i n g D e c e m b e r 7 , 1950.
.Cash a nd e x c h a n g e tenders
w i l l r e c e i v e e q ual treatment.
Cas h a d j u s t m e n t s w i l l be m a d e 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 bills a c c e p t e d in
e x c h a n g e and the issue p r i c e of the n e w b i l l s .
The income d e r i v e d f r o m T r e a s u r y bills, w h e t h e r i n t e r e s t or
g a i n f r o m the sale or o t h e r d i s p o s i t i o n of the bills, shall not
h a v e a n y exemption, as such, and loss from the sale or o t h e r
d i s p o s i t i o n of T r e a s u r y bills shall n ot h a v e a n y sp e c i a l treatment,
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
s u p p l e m e n t a r y thereto.
The bills shall be subject to estate,
inheritance, gift or o t her excise taxes., w h e t h e r F e d e r a l or State,
but shall be exem p t f rom a ll t a x a t i o n n o w or h e r e a f t e r i m p o s e d on
the p r i n c i p a l or i n t erest t h e r e o f by a n y State, or a n y of the
p o s s e s s i o n s of the U n i t e d States, or b y an y local t a x i n g authority.
F o r p u r p o s e s of t a x a t i o n the a m ount of d i s c o u n t at w h i c h T r e a s u r y
bills are o r i g i n a l l y sold b y the U n i t e d States shall be cons i d e r e d
to be interest.
U n d e r Se c t i o n s 42 a n d 117 (a) (l) of the In t e r n a l
R e v e n u e Code, as a m e n d e d by S e c t i o n 115 of the R e v e n u e A c t of 194.1,the a m o u n t of d i s c o u n t at w h i c h bills i s s u e d h e r e u n d e r are sold
shall not be c o n s i d e r e d to a c crue u n t i l such b i lls shall be sold,
r e d e e m e d or oth e r w i s e dis p o s e d of, an d such b i lls are e x c l u d e d from
c o n s i d e r a t i o n as capital a s s e t s . A c c o r d i n g l y , the o w n e r of Treasury
bills (other t h a n life in s u r a n c e companies) issued h e r e u n d e r n e e d
include i n h is income tax 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 ice p a i d for such bills, w h e t h e r on o r i g i n a l issue or o n s u b
sequent purchase, a nd the a m o u n t a c t u a l l y r e c e i v e d 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 t h e .taxable yea r for w h i c h the ■
r e t u r n is made, as o r d i n a r y g a i n or loss.
T r e a s u r y D e p a r t m e n t C i r c u l a r No. 4l8, as amended, a nd this
notice, p r e s c r i b e the terms of the T r e a s u r y bills and g o v e r n the
c o n d i t i o n s of t h eir issue.
Copies of the c i r c u l a r m a y be ob 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
eoi
4 ", .....- S____ â
^
RELEA
SEM
O
R
N
IN
GN
EW
SPA
PER
S,
J
_ O
Tuesday» December 5 , 1950»
y
^
s i
? C/
^
f
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 December 7, 1950,
and to mature March 8, 1951, which were offered on November 30, sere opened at the
Federal Reserve Banks on December k*
The details of this issue are as followst
Total applied for - $1,81*1$,903,000
Total accepted
- 1,103,11*0,000 (includes $111,197,000 entered on a noncompetitive basis and accepted in full
at the average price shown below)
Average price
- 99*655 Equivalent rate of discount approx. 1*366$ per annum
Range of accepted competitive bids*
High
Lew
- 99*658 Equivalent rate of discount approx. 1.353$ per annum
- 99M k
•
«
»
«
«
1*369$ *
«
(93 percent of the amount bid for at the low price was accepted)
Federal Reserve
District
Total
Applied for
Total
Accepted
Boston
N
ewfork
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
|
|
TO
TA
L
12,695,000
l,39l*,612,000
21,91*3,000
1*7,237,000
11,915,000
8,087,000
172,827,000
17,717,000
7,225.000
1*5,905,000
20,925,000
83,815,000
$1,81*1*,903,000
11,128,000
762,1*03,000
10,793,000
37,277,000
10,965,000
7,617,000
120,700,000
lit,81*7,000
5,71*5,000
32,305,000
17,525,000
71,835,000
$1,103,11*0,000
190
RELEASE M O R N I N G NEWSPAPERS,
Tuesday, D e c e m b e r 5, 1950«
S-2524
The S e c r e t a r y of the T r e a s u r y a n n o u n c e d last e v e n i n g that the
tenders for $1, 1 0 0 , 0 0 0 , 0 0 0 , or t hereabouts, of 9 1 - d a y T r e a s u r y bills
to be d a t e d D e c e m b e r 7, 1950, an d to m a t u r e M a r c h 8, 1 9 5 1 , w h i c h were
offered o n N o v e m b e r 30, were 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 on
December 4.
The d e t a i l s
of this issue are as follows:
T o t a l a p p l i e d for - $ 1 , 8 4 4 , 9 0 3 , 0 0 0
Total accepted
1,103,140,000
Average price
(includes $ 1 1 1 , 1 9 7 , 0 0 0
entered on a non-competitive
b a sis a n d a c c e p t e d i n full
at the a v e r a g e p r i c e s h o w n
below)
- 9 9 * 5 5 5 E q u i v a l e n t rate of d i s c o u n t approx.
1 .366 * 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;
9 9 .6 5 8 E q u i v a l e n t rate of d i s c o u n t a p p r o x .
High
-
Low
1 353 p e r a n n u m
- 9 9 . 5 5 4 E q u i v a l e n t rate of d i s c o u n t a p p r o x .
I . 369 * p e r a n n u m
.
*
(93 p e r c e n t of the a m o u n t b id for at the low p r i c e was a c c epted)
Federal R e s e r v e
District
Total
Applied
Boston
New Y o r k
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
S t ... Louis
Minneapolis
Kansas Cit y
Dallas
San F r a n c i s c o
$
1 2 ,6 9 5 ,0 0 0
1,394,612,000
21.943.000
47.237.000
.
1 1 9 1 5 .0 0 0
8 , 0 8 7,0 0 0
1 7 2 ,8 2 7 ,0 0 0
17.717.000
7 ,2 2 5 ,0 0 0
45.905.000
2 0 .9 25 .0 0 0
83.815,000
TOTAL
$ 1 ,844, 9 0 3 ,0 0 0
0O0
Total
Accepted
for
$
11 , 128,000
762.403.000
1 0 ,7 9 3 , 0 0 0
37.277.000
10.965.000
7 ,6 17 ,0 0 0
1 2 0 .70 0 .0 0 0
14.847.000
5,745,000
3 2 .3 0 5 .0 0 0
17.525.000
71.835.000
$1,103,140,000
191
■RELEASE, MORNING NEWSPAPERS,
Monday, December I+, 1950.
S-2525
Secretary of the Treasury Snyder today announced the offering, through the
Federal Reserve Banks, of 1-3/1+ percent Treasury Notes of Series B-l955, open
on an exchange basis, in authorized denominations, to holders of 1-1/2 percent
Treasury Bonds of 1950, maturing December 15, 1950, in the amount of
§2,635,1+33,500, or 1-1/8 percent Treasury Certificates of Indebtedness of Series
A-1951, maturing January 1, 1951, in the amount of $5,372,668,000. Exchanges
will be made par for par on December 15 in the case of the maturing bonds, and
at par with an adjustment of interest on January 1 in the case of the maturing
certificates. The new notes will be delivered on or after December 15 in the
case of bonds exchanged, and on or after January 2 in the case of certificates
exchanged. Cash subscriptions will not be received.
The notes now offered will be dated December 15, 1950, and will bear
Interest from that date at the rate of 1-3/1+ percent per annum, payable semi
annually on June 15 and December 15 in each year until the principal amount
becomes payable. They m i l not be subject to call for redemption prior to
maturity. They m i l be issued in bearer form only, with interest coupons
attached, in denominations of $1,000, $5,000, $10,000, $100,000 and $1,000,000,
Pursuant to the provisions of the Public Debt Act of 19 I+I, as amended,
interest upon the notes now offered shall not have any exemption, as such, under
the Internal Revenue Code, or laws amendatory or supplementary thereto. The
full provisions relating to taxability are set forth in the official circular
released today.'
Subscriptions will be received at the Federal Reserve Banks and Branches,
and at the Treasury Department, Washington, and should be accompanied by a like
face amount of the securities to be exchanged. Subject to the usual reserva
tions, all subscriptions will be allotted in full.
The subscription books will close for the. receipt of ail subscriptions at
the close of business Thursday, December 7*
Subscriptions addressed to a Federal Reserve Bank or Branch or to the
Treasury Department, and placed in the mail before midnight December 7, m i l
be considered as having been entered before the close of the subscription books.
The text of the official circular follows:
192
UNITED STATES OF AMERICA
1-3/U PERCENT TREASURY NOTES OF SERIES B-1955
Dated and bearing interest from December 15, 1950
Due December 1$, 1 9 5 5
Interest payable June 15 and December 15
1950
Department Circular No. 879
TREASURY DEPARTMENT,
Office of the Secretary,
Washington, December R, 1950
Fiscal Service
Bureau of the Public Debt
li The Secretary of the Treasury, pursuant to the authority of the Second
Liberty Bond Act, as amended, invites subscriptions from the people of the
United States for notes of the United States, designated 1-3/U percent Treasury
Notes of Series B-1955, in exchange for 1-1/2 percent Treasury Bonds of 1950,
maturing December 15, 1950, or 1-1/8 percent Treasury Certificates of Indebted
ness of Series A-1951, maturing January 1, 1951* Exchanges will be made par for
par on December 15 in the case of the maturing bonds, and at par with an adjust
ment of interest on January 1 in the case of the maturing certificates.
I. DESCRIPTION OF NOTES
June ip and December 15 in each year until the principal amount becomes payable.
They will mature December 15, 19555 and 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 supple
mentary thereto. The notes shall be subject to estate, inheritance, gift or
other excise taxes, whether Federal or State, but shall be exempt from all taxa
tion now or hereafter imposed on the principal or interest thereof by any State,
or any of the possessions of the United States, or by any local taxing authority.
3* The notes will be acceptable to.secure deposits of public moneys.
will not be acceptable in payment of taxes.
They
U. Bearer notes with interest coupons attached will be issued in denomina
tions of $1,000, $§¿,000, $10,000, $100,000 and $1,000,000. The notes will not
be issued in registered form.
5. The notes will be subject to the general regulations of the Treasury
Department, now or hereafter prescribed, governing United States notes.
-
2
193
-
III. SUBSCRIPTION AND ALLOTMENT
1. Subscriptions will be received at the Federal Reserve Banks and Branches
and at the Treasury Department, Washington. Banking institutions generally may
submit subscriptions for account of customers., but only the Federal Reserve Banks
and the Treasury/are authorized to act as official agencies.
Department
2. The Secretary of the Treasury reserves the right to reject any subscrip
tion^ in whole or in part., to allot less than the an bunt of notes applied for,
and to close the books as to any or all subscriptions at any time without notice;
and any"action he may take in these respects shall be final. Subject to these
reservations, all subscriptions Yd.ll be allotted in full. Allotment notices will
be sent out promptly upon allotment.
1. payment for notes allotted hereunder must be made on or before
December 1/, 19/0, or on later allotment, in the case of maturing bonds tendered
in exchange, and on or before January 2, 19/1, ©r on later allotment, in the case
of maturing certificates tendered in exchange. The npw notes will be delivered
qn or after December 1/ in the case of bonds exchanged, and on or after
January 2 in the case of certificates exchanged, payment of the principal amount
may be made, only in Treasury Bonds of 19/0, maturing December 1/, 19/0, ©r in
Treasury Certificates ©f Indebtedness of Series A-19/1, maturing January 1, 19/1,
which ?dll be accepted at par and should accompany the subscription. Payment of
final interest due December 1/, 19/0, an bonds exchanged hereunder will be
effected, in the case of coupon bonds, by payment of December 1/, 19/0 coupons,
which should be detached by holders before presentation of the bonds for exchange,
and in the case of registered bonds, by checks drawn in accordance with the
assignments on the bonds surrendered. The full year’s interest on certificates
exchanged hereunder will be credited, accrued interest on the new notes from
December 1/, 19/0, to January 1, 19/1, ($0.8173 per $1,000) will be charged, and
the difference ($10.1;327 per $1,000) will be paid to subscribers on January 2,
19/1.
V. ASSIGNiBNT OF REGISTERED BONDS
e 1. Treasury Bonds of 19/0 in registered form tendered in payment for notes
offered hereunder should be assigned by the registered payees or assignees
thereof to ”The Secretary of the Treasury for exchange for Treasury Notes ®f
Series B-19/Z.to be delivered to
", in accordance with the general
regulations of the Treasury
*§oy^rmlig assignments for transfer cr
exchange, and thereafter should be presented and surrendered Yrith the subscrip
tion to a Federal Reserve Bank or Branch or to the Treasury Department, Division
of Loans and Currency, Washington, D. C. The bonds must be delivered at the
expense and risk of the holders.
VI. GENERAL PROVISIONS
1. As fiscal agents of the United States, Federal Reserve Banks are
authorized and requested to receive subscriptions, to make allotments on the
194
- 3 basis and up to the amounts indicated by the Secretary of the Treasury to the
Federal Reserve Banks of the respective districts., to issue allotment notices.,
to receive payment for notes allotted, to make delivery of notes on full-paid
subscriptions allotted, and they may issue interim receipts pending delivery of
the definitive notes.
2; The Secretary of the Treasury may at any time, or from time to time,
prescribe supplemental or amendatory rules and regulations governing the offer—
ing, which will be communicated promptly to the Federal Reserve Banks.
JOHN W. SNYDER,
Secretary of the Treasury.
TR
EA
SU
R
YD
EPA
R
T
M
E
N
T
to w »ef-Internal Retenue
IMMEDIATE RELEASE
In reply to numerous inquiries, George J. Schoenemn, Commissioner
of Internal Revenue, announced today that no inoome tax deductions m
ay
he taken for fines paid by truck operators for violating state laws
prescribing m
axim
umweights, loads, or size of trucks*
This ruling revokes a prior ruling, made in 1942, at -which time
the available information indicated that such truck fines were
comparable to 'to&àéga tolls rather than penal fines• Reoently, additional
information has been brought to the attention of the Bureau, and con
sideration of this material has indicated the necessity of the new
ruling*
Accordingly, inoome tax deductions will not be allowed for these
fines paid or incurred after December 1, 1950*
TREA SU RY DEPARTM ENT
Information Service
I M M E D I A T E RELEASE,
Zgj-j-ay,- D e c e m b e r 1,
Wa s h i n g t o n , d . c .
1 9 5 0 ..
S-25 2 6
In r e p l y to n u m e r o u s inquiries, George J.
S choeneman, C o m m i s s i o n e r of I n t e r n a l Revenue,
a n n o u n c e d t o d a y that no income tax d e d u c t i o n s m a y
be t a k e n for fines p a i d b y t r u c k o p e r a t o r s for
v i o l a t i n g state lavs p r e s c r i b i n g m a x i m u m veights,
loads, or size of trucks.
,
This r u l i n g r e v okes a p r i o r ruling,
m a d e in
1 9 ^ 2 , at w h i c h time the a v a i l a b l e i n f o r m a t i o n
i n d i c a t e d that such t r u c k fines w e r e c o m p a r a b l e
to tolls r a t h e r t h a n p e n a l f i n e s . Rec e n t l y ,
a d d i t i o n a l i n f o r m a t i o n has b e e n b r o u g h t to the
a t t e n t i o n of the Bureau, a n d c o n s i d e r a t i o n of this
m a t e r i a l has i n d i c a t e d the n e c e s s i t y of the n e w
ruling.
A c c o r d i n g l y , income tax d e d u c t i o n s w i l l n ot
be a l l o w e d for these fines p a i d or i n c u r r e d a f t e r
D e c e m b e r 1, 1 9 5 0 .
0O0
- 3•»me
any State, or any of the possessions of the United States, or by any local tax
ing 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
bZ
and
11?
(a)
(1)
as amended by Section llf> of the Revenue Act of
of the Internal Revenue Code,
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 in
clude in his income tax return only the difference between the price paid for
such bills, whether on original issue or on subsequent purchase, and the amount
actually 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
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 bo 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
December lii, 1950 > in cash or other immediately avail------- ........~ able funds or in a like face amount of Treasury bills maturing December lii. 19<?0
Federal Reserve Bank on
Cash and exchange tenders will receive equ&l 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.
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
m s m MXJL
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Thursday, December 7. 1950
HEBT
The Secretary of the Treasury, by this public notice, invites tenders for
$ mOOOyOOO.OOO > or thereabouts, of
91 -day Treasury bills, for cash and
w
w r
in exchange for Treasury bills maturing
December lh. 19 ft) , to be issued on
a discount basis under competitive and non-competitive bidding as hereinafter
provided.
vdll mature
interest.
The bills of this series vdll be dated
» and
December lh. 1950
March 15. 1951____ , when the face amount vdll be payable without
They vdll be issued in bearer form only, and in denominations of
$1,000, $5,000, $10,000, $100,000, $500,000, and $1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the
closing hour, W o o»clock p.m., Eastern Standard time, Monday. December n
23
Tenders will not be received at the Treasury Department, Washington.
iQSn
Each tender
must be for an even multiple of $1,000, and in the case of competitive tenders
the price offered must be expressed on the basis of 100, vdth not more than three
decimals, e. g., 99.925.
Fractions may not be used.
It is urged that tenders
be made on the printed forms and forwarded in the special envelopes which vdll
be supplied by Federal Reserve Banks or Branches on application therefor.
Others than banking institutions vdll 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,
TREA SU RY DEPARTM ENT
Washington , d .c .
Information Service
■
S
RELEASE M O R N I N G NEWSPAPERS,
Thursday3 December 7/ 1 9 5 0 ,
I
I
,
S-2527
' ' 200
7
The S e c r e t a r y of the Treasury* by this p u b l i c notice, invites
tenders for $ 1 , 0 0 0 * 0 0 0 , 0 0 0 , cr thereabouts, of 9 1 - d a y T r e a s u r y bills,
for cash a nd in e x c h a n g e for T r e a s u r y bills m a t u r i n g ' D e c e m b e r 14,
195 0, to be i s sued o n a d i s c o u n t b a sis u n d e r c o m p e t i t i v e a n d n o n
competitive 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 - o f this
series w i l l be d a t e d D e c e m b e r 14, 1950, and will ma,ture M a r c h 15,
1951, w h e n the face a m ount w ill be p a y a b l e w i t h o u t interest.
They
will be issu e d i n ^ b e a r e r for m only, a nd in d e n o m i n a t i o n s of $ 1 ,000 ,
$5 ,000 , $ 1 0 , 000 , $ 1 0 0 , 000 , $ 50 0 ,000 , and $ 1 , 000,000 ( m a t u r i t y value).
Te 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 nd 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., E a s t e r n S t a n d a r d time,
Monday, D e c e m b e r 1 1 , 1 9 5 0 . T e n ders w i l l not be r e c e i v e d at the
Treasury D e p a r t m e n t , W a s h i n g t o n .
E a c h t e n d e r m u s t be for a n e v e n
multiple of $ 1 , 000 , and in the case of c o m p e t i t i v e t e nders the p r ice
offered m u s t be e x p r e s s e d on the basis of 1 0 0 , w i t h not m o r e t h a n
three.decimals, e. g., 9 9 ,9 2 5 . F r a c t i o n s m a y not be u s e d . Xt is '
urged that tenders be m a d e on the p r i n t e d forms a nd f o r w a r d e d in the
special e n v e l o p e s w h i c h w ill be supplied by F e d e r a l R e s e r v e B a n k s or
Branches on a p p l i c a t i o n therefor.
O t hers 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 no t be p e r m i t t e d to submit
tenders e x c e p t for their o w n a c c o u n t , Te n d e r s w i l l be 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 banks and trust co m p a n i e s a nd f r o m "
responsible and r e c o g n i z e d d e a lers in i n v e s t m e n t s e c u r i t i e s . T e n ders
from others m u s t be a c c o m p a n i e d by p a y m e n t of 2 p e r c e n t of the face
amount of T r e a s u r y b i lls a p p l i e d for, u n less the tenders are
accompanied by a n e x p ress 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
bank or trust company.
I m m e d i a t e l y a f t e r the c l o s i n g hour, tenders w i l l be 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 nd Bra 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 of the T r e a s u r y of the
amount a nd p r i c e range of a c c e p t e d bids.
T h ose s u b m i t t i n g tenders
will be a d v i s e d of the a c c e p t a n c e or r e j e c t i o n thereof.
The
Secretary of the T r e a s u r y e x p r e s s l y re s e r v e s the r i g h t to a c c e p t or
reject a n y or a l l tenders, in w h o l e or in part, a nd his a c t i o n in
any such r e s p e c t shall be f i n a l . S u b ject to these r e s e r v a t i o n s
non-competitive tenders for $ 20 0 ,0 0 0 or less w i t h o u t s t a t e d price
rom a n y one b i d d e r w i l l be a c c e p t e d in full at the a v e r a g e p r ice
o
(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 December 14, 1950, in cash
or other immediately available fund3 or in a like face amount of
Treasury bills maturing December 14, 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. ,
f
The inco m e d e r i v e d from T r e a s u r y bills, w h e t h e r i n t e r e s t or
g a i n fro m the sale or o t her d i s p o s i t i o n of the bill's, shall not have
a n y exemption, as such, a nd loss fro m the sale or o t h e r d i s p osition
o f . T r e a s u r y b i l l s shall n ot h a v e a n y s p e cial treatment, 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 supplementary
thereto.
The bills shall be subject to estate, i n heritance, gift
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 S t a t e , 'but shall be exempt
from a ll t a x a t i o n n o w or h e r e 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
in t e r e s t t h e r e o f by a n y State, or a n y of the p o s s e s s i o n s of the
U n i t e d States, or by a n y local t a x i n g aut h o r i t y .
F o r pu r p o s e s of
t a x a t i o n the a m o u n t of d i s c o u n t at w h i c h T r e a s u r y b i l l s are originally
sold b y the U n i t e d States shall be c o n s i d e r e d to be interest.
Under
S e c tions be. and 117 (a) (l) of the I n t e r n a l R e v e n u e Code, as amended
by S e c t i o n 115 of the R e v e n u e A ct of 1941, the a m o u n t of di s c o u n t at
which bills i s sued h e r e u n d e r are sold shall not be c o n s i d e r e d to
a c c r u e u n t i l such bills shall be sold, r e d e e m e d or o t h e r w i s e disposed
of, and such bills are e x c l u d e d f rom c o n s i d e r a t i o n as c a p ital assets.
A c c o r d i n g l y , the o w n e r of T r e a s u r y bills (other t h a n life insurance
companies) i s s u e d J h e r eunder n e e d include i n h is I n c o m e tax 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 ice p a i d f or such bills, w h e ther .
on o r i g i n a l issue or on s u b s e q u e n t purchase, a nd the a m o u n t actually
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
ta x a b l e y e a r for w h i c h the r e t u r n is made, as o r d i n a r y g a i n or l o s s .
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
I
ios
17
Mew the Mil It modified to increase it» yield* it will not
neet the objective sot by the President before the recent deteriora
tion In the international situation. Thè increase in corporation
tea»« presided is the Mil is soderete in relation to the upward
eurge ta profite* It should be remembered that all snail corporations
and corporations with carrent Incosse not in excess of the alloyed
crédité wonld be except*
In considering the effect of these increased taxes« It Is
important to hare in mind the extreaely liberal method provided for
computing base-period earnings, the allowance of the three best out
of fear years yields a figure which would usually be substantially
above the actual earnings in the extremely prosperous fens years
which followed fterld Var II.
I urge your eomaittee to review carefully the methods by which
this bill can be amended to Increase the yield from the taxation of
corporation profits to moot the
billion goal set by the Preeldeat*
By adding $h billion to the revenue-producing strength of the tax
system« this Oongress will contribute substantially to our financial
preponedmess*
December
3 , 1950
'*» lé
iacluàing thè
regul&r
pereent normal tax and «urtarla serpegallimi jJWflU la
•gl*®
Shaxt ^ show* thè addittonai taz that would he imposed oa
corporation# sTifejeet to this taz. Ibr eorporations «rìth current
net iaeosse errasi te thelr arerai« baee-period earnìnge thè taz vould
amount te 4*5 percent of total net incosse. fhe effeetive rate of
taz sould rise to 13 percent of total net incolse vhere eurrent
•aratila are equal to 1 5 0 percent of thè base-perled average and te
approxiraately 1? pereent vhere current earnìngs are tele« thè baseperlod average. The sazimm effeetive rate of 22 pereent« aaklsg a
total taz of
67
percent, wold be reaehed at thè polnt vhere current
earntags are sllghtly more thaa three tlses thè base-perlod average.
Hereaue yleld of thè bill
The revenue yleld of thè louse bill is estimate* to fall short
of thè Presidente recosBaendation by about $1 blllion* Pari of
thls eould be reeovered by aodlfying thè obleetìoaable features of
thè bill to vhieh 1 bare referred*
da lsportant reason for thè reduce* yleld under thè House bill
le thè adoption of a base-perlod earnìngs credit semi to 85 pereeat
of thè average for thè three beat years Instead ef thè 75-pereeat
figure vhieh 1 suggested to thè Oosnlttee on bàys and M
enna.
80S
- 15 Wither this profit# tax will encourage uaecomonieal spending will
depend in part on the spirit with which business approaches ite t&tìc
ia this eaergency. Seastdcmtloa of the arguneat cannot he Halted to
tax calculation# alene* ölearly the entire range of principle#
governing business deeieions 1# of aere fondaneatal insortane#. Be
tax law, however carefhlly fraaed, can ensere fall cooperation
#
100 percent of business in the national effort. A
-W
A
he-■
„»
«>»#
the country can have confidence that the majority of busin#sseen, like
all others, will shoulder the increased tax harden forced upon as and
continue to do their pert.
Oar experience with the sartine law indicates that the practice
of wasteful expend!tares was less widespread than supposed. Estab
lished business organisations were generally more concerned with
observing efficient and eoonoaieal procedure# essential to their
continued success than with exploiting temporary varila® advantages.
70x
fhere were exceptions then, ae there will he now* whlci^adsinistmtIon
ms% strive to prevent, fhe experience gained during the last war
will enable the Bureau of Internal Seven»« to segregate reasonable
fron unreasonable deductions more effectively, to support thi#
Aicfy v W
..
e ffo rt, year Ooaniitee l i m gtá to consider the d e s ira b ility o f Pt
il, ........... TgjJ Ulani rr~rii asking it clear that unnecessary and unreasonable e^enditures i m i be disallowed for tax purposes.
OS
Cosisiittee may al»« destre to gire attuilo« te restricting
credit fer nev Investment te productivo asseta msed la ih# busi—
***** 11 p flf paipese ef thè eredita for aw capitai additieas*
*oth ia %ìm bas« pealad and la thè taxaMe year, te previde an additleaal eredit for w * Investment which is presaaied to bo refleeted
la laereaeed e&rning» ef il» corporation*.
Xf «neh eredit la givea
for nadue aceasralatleas ef e&sà «ad other noa-preduetive assets, thi*
patpese eli! be defeated and unvmrranted benefits aad abasas vili
resali.
la additici te thè above previsioas vhieh raise ouestìons ef
faadaaéaial epuity, there are various tediatesi mailer» vfeieh thè
G m ittm aay alee wish te censider. ?he staff vili he arallable te
dlacuss these at thè eoaveaienee ef thè Committee.
Bufo re emoni problema
It vonld he a grave eaissioa far m
e te pass ever oae ef thè mesi
pervasive eriticisas vhleh vili eoafroat yen la eoasideriag thie bill.
Xrefer to thè viev fre^aeatly «preassd that thie type of tax must
iaevitably eneourage vastefol and extravagaat espanditares aad
stimolate, rathor thaa retard, iaflation.
me elalm reste oa thè
assumption that thè profite taa vili ladaee busiaessaen te malte expenditares selely befase mesi of thè barden vetad be berne by thè
Sovernment through a reduciion ia thè revenos colleeted.
2ÖS
- 13
capital stock, reinvested earning# and borrowed capital,
la the case
#f utilities «abject to federal regulation, notably railroad# and
other interstate carrier#, the corresponding tax-free retar» is set
at 5 percent.
fhe adoption of this provision would bring into question the
underlying principles of the incoas taxT*^ If ve should accept the
principle
o f.—4NhH§ exertions irrt thA
im
i1nun
A
M
m tw
in on the
baeis of net inooae after tax, the federal tax systemwould lose its
effectiveness for equitably distributing tax burdens, ffitlnstsly.
« il la s saci a o^OTHBave tu be1 taumd with gegard te s e c a liedrtrtR y totee
Ihle provision votad discriminate among different utilities
and bestow special benefitsprimarily on large companies, regardless
_
¿¿u fafhif fyd/
of the fact that Hü industry nay be enjoying Image increases in
mother provision of the bill, Section hh8, would greatly enlarge
the area of preferential treatment In the mining industry. 1 amfully
aware of the portane# of securing strategie minerals. However, it
will require great care to formulate legislation in the interest of
defense production without granting unjustified benefits or encouraging
unproductive diversion of essential resources. W
hen this matter
receives your consideration, the staff will be prepared to place the
pertinent facte before you.
^
- Ä W c »
80S
-
12 -
Integration of Income tax and ease«»» profit» tax
^
Technical difficulties experienced In the administration ©i^prlor
excess prefits tax lav will be largely avoided through the Integration
of the income and excess profits taxes a# ©resided in the hill. By
lh*C«vfeC~
imposing both taxes under Chapter 1 of the^Code, and by assessing
and collecting then as one tax* Interest computations and the
statutes of limitations would apply uniformly, for convenience in
computing the taxes* the income tax would apply to the entire amount
of net Income. An additional surtax of JO percentage points would
apply to the adjusted excess profits net income which together with
the | j percent normal tax and surtax* would m
a3ce a total rate of
75 percent on excess profits.
Dh&eslrablo features of the bill
Although the liberalised features of the Souse bill generally
accord with the views of the Department* the bill contains some provisions which tend to create rather than alleviate ineoultles.
¥
Asubstantial amount of revenue Is lost In the Souse bill by
giving preferential treatment amounting to virtual exemption of
certain types of businesses which are generally subject to public
regulation, fha bill would allow public utilities regulated by
State authorities an alternative credit.
It would permit themto
receive (before the application of any profits tax) a net return
after income taxes of 6 percent of their total Investment* including
YOS
u
»
a sat# of return higher than the statutory allowance ©
a invested
capital« fh©hill provides newcorporations with an alternative
credit equal to the average rate of return experienced by their
respective industries in the base period. TJh&
er this formula most
newfirms will receive substantially more generous eredita than
j
r~ ~ T
------------------------------------------------------- --------------------------------------- —
1
I
"----------^
<fl TU aaj fU éTtoU +w oJ
they would under the invested capital aethoà.\ 9M» will he of
„
great iaportanee in stimulating
d
*
f
newhmàmmmmm*
fhe Committee »ay he interested at this point in what has been
done about Section 722 of the W
orld W
kr XI law. Ibis section
specified in considerable detail the circumstances under which
j
taxpayers would be entitled to relief, the law encouraged the
filing of about $k9000 claims for relief and was difficult to
administer.
As reported to the Bouse» the bill contains no general relief
provision oosparable to the former Section ?22.
1
It was considered
desirable to avoid the difficulties created by the old provision
by adopting the relatively more liberal credit provisions enumerated
7 £ jb>
above. Safe Department shares the view of the Committee on W
ays
and Keans that this Is a desirable step and that it would remove
the basis for much of the criticism directed at the old law.
80S
- io -
1m capitai allevane»
Ìhe allowance for newcapitai ìnvested after thè base period bas
been bastcally rerìeed by prerlding a unlfors rate ef retar» for all
corporation* regardless of thè type of eredlt eleeted.
fhe alleva
ance le a fiat 12 percent ef aeir eqnìty editai and retalaed earnings»
i j j /S
plus 190*pereeat of latoresi pali oa addit ione to berrowed capitai.
fide treatment remorea a eerlous defeet in thè old lav. $hder
tbat lev corporation* eleeting ih* baee-perled earnlngs credit
reeeìred aa allevane« for capitai added «ubsequent to ih# base
period oaly if thè additio» took thè fora of ne* equlty capitai pald
iato thè corporation, Under thè rerised treatment no penalty le
plaeed upe» thè eleetlon of thè base period earaings credit.
Predit for acv buelnessee
One of thè »est dlffieult problema arlsing under thè Iferld
Hsr II iax* and one vhich resulted in a largo m
xm
ber of eiaime for
relìef, va# thè treatment of firme beginning operaiIone during or
after thè base period.
Sneh firme vere generally required to use
thè ìnrested empital allevane*^ or to apply for rellef under
Section 722(e)* vhieh prorided for reeonstruetlon of a hypothetieal
base-perìed experlence.
5he appro&eh to thìs preblem taken under H. 1. 9827 le mere
logicai and vili slapllfy thè develepment of an earnlagt credit
ubere thè t&xpayer le elaeslfled In an Industry vhlch has experieneed
6,05
*•» ^
Invested c a p ita l
brackets
C aillions)
Tted.r |f
15-10
Over 10
mm
î Invested ca p ita l allowance
sW
orld fa r: B. 8. t Percent
i I t law t .982? t Increase
1
i
5
12$
10
a
59$
«6-2/3
do
borrowed capital allowance bas bean revised to provide a
«redit «foal to one and one-third of the interest paid. ly unking
tbe allevane« proportional to the actual interest obligetiens asmtmeé
%j eaeh corporation,. a serions shortcoming of the old lav Is avoided,
ìhe fbrld far II law provided for the inclusion of JÖpercent of
borrowed capital in invested capital, and at the same time die*
allowed $0 percent of the deduction for interest paid.
In effect
this rule gave taxpayers the benefit of one-half the difference between the statutory rate on m a £ ^ o » p tU l and the rate of interest
on borrowed Capital. As a result, taxpayers borrowing at Interest
fcj
rates in excess of the statutory rates on rirrfftr capital were actually
penallead.
Thou* on the other hand with access to very low interest^
rates wsre given a relatively large advantage.
tfeder the prior law the naxisua net benefit obtainable on bor
rowed capital for a corporeiIon borrowing at 6 percent was one per
cent. isêer the Souse bill the credit would be Increased by one-third
of 6 percent for all corporations borrowing at that rate, thus
increasing the net benefit In such eases to 2 percent of the borrowed
capital.
4 farther important change is made la computing base period
income. 1. H
* 9827 provides for an toward adjustment is the
average earnings base to reflect one-half of the net additions
to capital made la 19^6 and all additions made in 19^9# irrespective
of whether the net additions were la the fora of equity capital«
retained earnings or borrowed capital,
jhniA S St
fhts prevision alone will
very snbstantlal benefits to a amber of important
industries which expanded steadily or at an increasing rate daring
the base period.
In addition to reflecting actual changes la
coital lavestaent daring the base period« this «edification avoids
the necessity for retaining the so-called "growth formula* of the
old law. However« the bill does contain a restricted provision
for recognising growth of profits where this «ay not/adequately
reflected through the allowance for capital additions in the base
period.
two important changes have been aade in the invested capital
credit. One has to do with the rate of return allowed in eosnratlng
the credit and the other with the treatment of borrowed capital.
fhe House bill retains the principle of allowing higher rates
of return for snail corporations than for large corporations. As
shown below, the rates under the bill are 12 percent on the first
$5 »illion of invested capital» 10 percent on the next $5 »111ion
and o percent on the amount over $10 »11lion. These^exeeed these
allowed during W
orld W
ar II by $0 percent or »ore.
- 7 -
exemption was granted to all corporations, The else of the exemption
was necessarily limited by revenue considerations, fhs minimumeredit
of $25*300 provided a&der the House Mil is operative only where the
corporation1s own excess profits Credit a&der the Mil is lees than
$25*000, it time concentrates relief in the lower income corpora*
tions and provides a larger f&voraMe area for the development of
small and neweasinesses. It also red&ees substantially the possible
burden of relief claims, 4 $2 5* 0 0 0 mlnlaaa credit under the
W
orld W
ar II tax would have ollmlnated about one*qaarter of all relief
claims.
Liberalisation of credits
fhe lease bill retains the optional use of a base period earn*
lags credit or an invested capital eredit as was provided in the
W
orld W
ar 11 law. However, It makes substantial revisions in both
of these credits.
taxpayers are given greater leeway than under the W
orld W
ar II
law in computing average base period earnings, fhe bill permits a
. \
corporation to take the best three of the four years 19^6-19*19 and
In addition to count as serorany remaining loss years, Inder the
W
orld W
ar II law taxpayers were required
partially include their
worst yearjatffc net losses in any of the remaining three years were
subtracted in fall fromprofits of other years in computing the
average.
- 6 «•
Haase. Far year eonvenienee I amattaching m tarlar exhibit which
&
!▼
«* la sene detail a conferisca of the provisions of this hill
aad the W
orld W
ar 11 law.
la geaeml, the lease hill will exempt acre saaU corporations,
proride acre liberal credits, «ad afford greater Incentive for the
investment of newimpilai and the organization of newbusinesses,
ht the ease time it will greatly redace the problems of adminis
tration and taxpayer compliance, y
■laMMIhtloa of minim
umcredit for specific excretion
Hador the Hoase Mil it is estimated that 82 percent of neaf inanei&Lcorporations will he exempted compared with J J percent in
1 9 ^h under
the W
orld W
ar II excess profits tax. Chart 1 shows the -
distribution of the additional tax liabilities under the bill by
assets site classes. Fhe chart/ indicates that only a small part of
the increased tax burden will fall on email corporations. Corporations with assets of less than one-quarter million dollars will pay
about 5 percent of the additional tax, whereas those with assets
above $50 million will pay over
percent,
fhe reduction in the number of corporations subject to the
profits tax is accomplished mainly because of the substitution of
am
inimumcredit for the specific exemption allowed under the
W
orld W
ar II law,
Cader the prior law the $10,000 specific
Comments on the House Bill
fkm bill reported by the Committee on lay» and Keans represents
a major achievement in the short tine that was available for its
preparation. It contains.in ay judgment. the essential feature* for
/
/
needed taxation of defense profits.
Critics of the effort to develop a tax on defease profits have
%
pointed to the difficulties experienced under the W
orld tor II
excess profits tax and have assumed that these difficulties could
not he effectively met. W
hen I appeared before the Committee on
toy* and Keans, I frankly recognised that the Imposition of a
special tax on defense profits is not without Its difficulties,
lovever, I pointed out that by benefiting frompast experience sub«»
slantial equity could be achieved and administrative burdens reduced.
fhe efforts of the Staffs of the Joint Committee on Internal
levenue taxation and the fre&sury Department have been concentrated
on this problem, fhe Bouse bill, which has been developed on the
basis of this work, demonstrates the practicability of profits
taxation appropriate to our current requirements. It goes a leng
way toward meeting the criticisms that have been made of the
torld tor II law*
In considering the improvements made in the structure of the
torld W
ar II law, it m
ay be helpful to your Committee to have a
brief review of the principal prevlfritea of the bill nowbefore the
Congress gars to added profits taxation* !ha unprecedented and
continued growth of corporation profits sines then testifies to the
widdo®of that action.
fli* Increase In corporate profits this year is the largest in
history. Baring the last quarter of 19^9» eorporation profits before income taxes were accruing at an annual rate of less than
Ilf Million.
Shey increased to $3? Milton in the second quarter
of this year and to $$2 billion in the third Quarter. Jfcr 195©as
a whole, corporate profits will probably aggregate $37 billion, or
almost $1©billion more than last year.
the else of corporation profits confirms the Presidents con
clusion that the $h billion revenue objective can be set without
imposing hardship on corporations. She data indicate also that If
equitably imposed, additional taxes of this magnitude would not
interfere with the ability of corporations to maintain present rates
of dlvidsnds to stockholders and retain record amounts of earnings
^
da fto'/
for reinvestment. Bren if corporation profits cdlak increase above
the current level, the pending legislation would leave corporations
In a position to dovoto sore than $20 billion to dividends and
reinvestment j** an amount which equals the 19&
Brecord and exceeds
all other years.
21$
~ 3dafense effort laaras no roo» for haaitatlen* Wm bara far
too xnoh ai stale* io risk thè conaocraenees of inadeooate «od t&rdy
fimmolai praparedaess.
^is Contrass c&
n salta a&Importasi ccmtritrattosi io ear national
strength la thè little timo at ita disposai by ad&lag thè proflts tax
to thè baderai tax straniare, to fceeone effeciive JNily 1 ef IM»
year as recoatended hy thè Presldeni aad prorided la thè Mi! r#~
P©*te& jj|
thè Coamitteo oa vays aad Mesa*.
eaactaaat of thls leglslation aill aake a partisi redootion
la this year's deficit aad salta sai laportant eontritratioa toward
aeetlng thè defessa sosta ahe&d of a*. Koreever, irlth this legislatioa eosspleted, thè amt Seagres# vili ha fres to tara Ita atteatìon
to laereasing Ih©orarceli rereane strength of oar tax ayatem la thè
Ughi of tha ealarged 1952 hadgai requiresents.
fhe gasa for laereased proflts taxes
fha intarla tax lagislatloa aaaetad fcy thè Coagress earliar
thia year, vith fall appreelatloa %
yhoth thè Sanate aad thè Bensa
of thè aead for prospt satina, addad afcont |3 hillioa rereaae froa
iadividaal aad $1.5 billion froa corporate iaeoaa tazes. fi vaa
reeogalsad at thè tìaa that la rlew of thè traad ia individuai aad
eorporata iaeoaas thèse additino# woold leare thè ivo taxes
uabalaacad. Thi* eoatrilmtad to thè overvhelatiag endoreeseat thè
9IS
-
2
-
Keed for nore term*®»
The over-riding consideration at this tine is the Governments
need for mere revenue. Iferly in the Korean crisis the Congress* at
the request of the President, appropriated ft? billion for defense.
These funds have been largely obligated» and last Friday the
President asked the Congress to appropriate almost $18 billion sore.
K
b one ©
an foretell howthe international situation will
develop. Unhappily it Is all too eloar that» undor the best possible
circumstances, we shall be confronted with vast defense expenditures
for years to eons.
The information available at the tine of my appearance before
the Committee on W
fcys and Keans indicated a deficit for this fiscal
year of about ft billion.
In light of the events of the past few
days» that estimate say prove to be too low.
The prospects for fiscal year 1952 and subsequent years are
fay sore serious. The President*s budget estimates for the cosing
year will not be completed for soma tine. Am a result of the vast
increases in defense costs» the level of governmental expenditures
r
"-t
next year may^hganaOnbe half again as largo as this year. Tery
substantial tax increases will be required to carry out the
essential policy of financing the greatest possible amount of these
costs by taxation. The importance of sound national finance to an
VIS
Stateaent of Seeretary Sfeyder Itefora the
Sonate Oommlttoe o» Tinance,
eo
emb
te
Dec
er K 1950
°
I «ss glaá te haré a» epportmity te diseñes with ye» the
tlll 1« 1. 982? provldlag for addillonal preflt« tares,
•an&er
i« aw
consideraiion la üü Sons# ©f S^reseat&tiTO**
la the Bevenne det of 1950 the Oongrees ealled lor tía» conadder
aiion of oxee»* profits taxatlea at thl» ««««loa, and ©
a Jíoxesber Itth
last th©Pr«»ldent recoasended a«v taxe* la thl» «rea te ral«« atout
$h tilltea ef reeaime. ©jo peadiag legielatlon is directed to thl«
end.
it thè outset I vl«h to exprese ay gratificati©» vlth yeur
deeisloa to adopt the usasual procedure of tegl&ai&g potile hearing«
hffor« the loa«« ha« eoapleted aetioa ©
» the leglslatlo». fhe evenis
of thè past f«v daye la Torea,test!p to thr eo^>elling nood for the
enaetment of adáltlosal proflts taxe» at thl« Ornare««loaal ««««loa*
Toar rosolatìo» to oosplete thl« leglslatlo» pros^tly vili ©oatrihute
to oar atlllty te seet the prohlems eoafroatlag as.
Since your schedale i* tight, 1 «hall llalt ay dl»«o*#i«a te
the ««seatlal pelate at lesa«, ta erdor that yo» alght hese tefore
yen the necess&ry laforsiation, I destro, vith your porsi«ele», to
offer for the reeord the stateaont I nade hefore the OoBaoltiee on
my* and M
ean« o» Horesher 15, 1950. Sinee that tías additlonal
profilo taxatlo» has reeeireá videepread patite conslderation, vhlch
has ciarlìied ths issuea inrolred i» the speeáy enaetment ef thl#
leglslatlo».
S -
a r a i
Cnfeatfr '1
TREASURY DEPARTMENT
Washington
S t a t e m e n t of S e c r e t a r y S n yder before
Senate C o m m i t t e e on F i n a n c e ,
D e c e m b e r 4,
218
the
19 50
I am g l a d to have an o p p o r t u n i t y to d i s c u s s w i t h y o u the
bill H. R. 9827 p r o v i d i n g f or a d d i t i o n a l p r o f i t s taxes, w h i c h
is n o w u n d e r c o n s i d e r a t i o n in the H o u s e of R e p r e s e n t a t i v e s .
^In the R e v e n u e Act of 1 9 5 0 the C o n g r e s s c a l l e d for the
c o n s i d e r a t i o n of e x c e s s p r o f i t s t a x a t i o n at this session, and
on N o v e m b e r 14th last the P r e s i d e n t r e c o m m e n d e d n e w taxes in
this a r e a to raise about $4 b i l l i o n of revenue.
The p e n d i n g
l e g i s l a t i o n is d i r e c t e d to this end.
At the o u tset I w i s h to e x p r e s s m y g r a t i f i c a t i o n w i t h
you r d e c i s i o n to adopt the u n u s u a l p r o c e d u r e of b e g i n n i n g
p u b l i c h e a r i n g s before the H o u s e has c o m p l e t e d a c t i o n on the
legislation*
The e v e n t s of the p a s t f e w days in K o r e a and
in o t h e r p a r t s of the w o r l d t e s t i f y to the c o m p e l l i n g n e e d
for the e n a c t m e n t of a d d i t i o n a l p r o f i t s taxes at this
C o n g r e s s i o n a l session.
You r r e s o l u t i o n to c o m p l e t e this
l e g i s l a t i o n p r o m p t l y will c o n t r i b u t e to our a b i l i t y to m eet
the p r o b l e m s c o n f r o n t i n g us.
Since y o u r schedule is tight, I shall limit m y d i s c u s s i o n
to the e s s e n t i a l p o i n t s at i s s u e . In o r der that y o u m i g h t
have before y o u the n e c e s s a r y information, I desire, w i t h your
permission, to offer for the r e c o r d the s t a t e m e n t I m a d e before
the C o m m i t t e e on Ways a nd M e a n s on N o v e m b e r 1 5 , 1 9 5 0 . Since
that time a d d i t i o n a l p r o f i t s t a x a t i o n h as r e c e i v e d w i d e s p r e a d
public c o n s i d e r a t i o n , w h i c h has c l a r i f i e d the issues i n v o l v e d
in the s p e e d y e n a c t m e n t of this l egislation.
NEED FOR MORE REVENUE
The o v e r - r i d i n g c o n s i d e r a t i o n at this time is the
G o v e r n m e n t ' s n e e d for more revenue.
E a r l y in the K o r e a n
crisis the C o n g r e s s , . a t the r e q u e s t of the P r e s ident, a p p r o
p r i a t e d $ 1 7 b i l l i o n for defense.
These f u nds hav e been
l a r g e l y obligated, and last F r i d a y the P r e s i d e n t a s k e d the
Co n g r e s s to a p p r o p r i a t e almo s t $ 18 b i l l i o n more.
S -2 5 2 8
219
2
- No °nfT u a n f o r e t e 1 1 h o w the i n t e r n a t i o n a l s i t u a t i o n will
oolsib?; J nhapp,
i ly lb 13 all too c l e a r that, u n d e r the bes t
p o s s i b l e c i r c u m s t a n c e s , we shall be c o n f r o n t e d w i t h vast
d e f e n s e e x p e n d i t u r e s for y e a r s to come.
before^the^omtTH t-io” avaI
1rlable at the time of my appearance
fw
T 1U
°n ayS a?d Means b l e a t e d a deficit
1 year °f about $2 Million. In light of the
too l o w ° f the P a S t f e W 'd a y S ’ that e s t l m a t e m a y p r o v e to be
___ cThe prospects for fiscal year 1952 and subsequent years
th. Par “ore serious. The President's budget estimates for
the vast
n0t be c o m p l e t e d f °r some time.
As a
i n c r e a s e s in d e f e n s e costs, the level of
l a r K e ^ nthiseXPendltureS neXt y®ar may be half aSaln as
da^s® a® bhls year- Very substantial tax increases will be
greatest J o s s i W e
Z
l*5 ® * SS? n t l a l p o l l c y of f i n a n c i n g th
Impo r t a n c e n f
6 a m o u ^t of these c o sts b y taxation.
The
effort ?
n a t i o n a l f i n ance to a n a d e q u a t e de f e n s e
at
^ ° m f °r h e s i t a t d o n -
We have far too m u c h
finance! n
!
consecluences of inadequate and tardy
iinancial preparedness.
J
,.
Congress can make an important contribution to our
a d d W % b e Strenf ^ in the llttle tlme at ifcs disposal by
g the profits tax to the Federal tax structure to
£residenfeC,
tlVe
1 °f thlS year as r e c o m m e n d e d ^ the
in th' b i n
« »
The enactment of this legislation will make a oartial
contribution
2*""®. defiolt and make an important
contribution toward meeting the defense costs ahead of us
reover, with this legislation completed, the new Congress
will be free
«
“
to turn its a t t e n t i o n to i n c r e a s i n g the ov^r
. s i r 1952
s « budget requirements.
°f °”
« * * • > > »»
arged
>
»
«
"
220
* 3 -
THE CASE FOR INCREASED PROFITS TAXES
The interim tax legislation enacted by the Congress
earlier this year, with full appreciation by both the Senate
and the House of the need for prompt action, added about
$3 billion revenue from individual and $1.5 billion from
corporate income taxes. It was recognized at the time that
in view of the trend in individual and corporate incomes
these additions would leave the two taxes unbalanced. This
contributed to the overwhelming endorsement the Congress gave
to added profits taxation. The unprecedented and continued
growth of corporation profits since then testifies to the
wisdom of that action.
The increase in corporate profits this year is the
largest in history. During the last quarter of 1949*
corporation profits before income taxes were accruing at
an annual rate of less than $28 billion. They increased
to $37 billion in the second quarter of this year and to
$42 billion in the third quarter. For 1950 as a whole,
corporate profits will probably aggregate $37 billion, or
almost $10 billion more than last year.
The size of corporation profits confirms the President1s
conclusion that the $4 billion revenue objective can be met
without imposing hardship on corporations. The data in
dicate also that if equitably imposed, additional taxes of
this magnitude would not interfere with the ability of
corporations to maintain present rates of dividends to
stockholders and retain record amounts of earnings for
reinvestment. Even If corporation profits do not increase
above the current level, the pending legislation would leave
corporations in a position to devote more than $20 billion
to dividends and reinvestment -- an amount which equals
the 1948 record and exceeds all other years,
COMMENTS ON THE HOUSE BILL
The bill reported by the Committee on Ways and Means
represents a major achievement in the short time that was
221
- 4 -
a v a i l a b l e for its p r e p a r a t i o n .
It contains, in m y j u d g
ment, the e s s e n t i a l f e a t u r e s f or n e e d e d t a x a t i o n of de f e n s e
profits.
C r i t i c s of the e f f o r t to d e v e l o p a tax on d e f ense
p r o f i t s have p o i n t e d to the d i f f i c u l t i e s e x p e r i e n c e d u n d e r
the W o r l d War II e x c e s s p r o f i t s tax a nd have a s s u m e d that
these d i f f i c u l t i e s c o u l d not be e f f e c t i v e l y met.
When I
a p p e a r e d before the C o m m i t t e e on Ways a nd Means, I f r a n k l y
r e c o g n i z e d that the i m p o s i t i o n of a special tax on d e f ense
p r o f i t s is not w i t h o u t its d i f f i c u l t i e s .
However, I
p o i n t e d out that by b e n e f i t i n g f r o m p a s t e x p e r i e n c e s u b
stantial e q u i t y c o uld be a c h i e v e d and a d m i n i s t r a t i v e b u r
dens reduced.
The e f f o r t s of the Staffs of the Joint C o m m i t t e e on
I n t ernal R e v e n u e T a x a t i o n and the T r e a s u r y D e p a r t m e n t have
b e e n c o n c e n t r a t e d on this problem.
The H o u s e bill, w h i c h
has b e e n d e v e l o p e d on the basis of this work, d e m o n s t r a t e s
the p r a c t i c a b i l i t y of p r o f i t s t a x a t i o n a p p r o p r i a t e to our
current requirements.
It goes a long w a y t o w a r d m e e t i n g
tlje c r i t i c i s m s that have b e e n made of the W o r l d War II
law.
In c o n s i d e r i n g the i m p r o v e m e n t s m a d e in the structure
of the W o r l d W ar II law, it m a y be h e l p f u l to y o u r
C o m m i t t e e to have a b r ief r e v i e w of the p r i n c i p a l p r o
v i s ions of the bill n o w before the House.
For your c o n
v e n ience I am a t t a c h i n g a t a b ular e x h i b i t w h i c h gives in
some d e tail a c o m p a r i s o n of the p r o v i s i o n s of this bill
and the W o r l d W ar II law.
In general, the H o use bill will e x e m p t m o r e small
c o r p o rations, p r o v i d e m ore liberal credits, and a f f o r d
g r e a t e r inc e n t i v e for the i n v e stment of n e w c a p i t a l and
the o r g a n i z a t i o n of n e w businesses.
At the s a m e •time it
will g r e a t l y r e d u c e the p r o b l e m s of a d m i n i s t r a t i o n and
t axpaye r c o m p 1 i anc e .
Chart I
Distribution of Additional Tax under H.R. 9 8 2 7
Vi. . . ' f T*
SizClasses ' 3 *v \\
PERCENTAGE DISTRIBUTION
M&Mwm
14-1
1-5
5-50
50andover
Assets Size Classes (Millions of Dollars)---------------- —'
222
- 5 -
S u b s t i t u t i o n of. m i n i m u m c r e d i t for
specific, e x e m p t i o n
Under- the H o u s e bill it is e s t i m a t e d that 82 p e r c e n t
of non-firiancial c o r p o r a t i o n s w ill be e x e m p t e d c o m p a r e d
w i t h 73 p e r c e n t in 1944 u n d e r the W o r l d War II e x c e s s
p r o f i t s tax.
C h a r t 1 shows the d i s t r i b u t i o n of the a d
d i t i o n a l tax l i a b i l i t i e s u n d e r the bill b y a s s e t s size
classes.
The c h art ind i c a t e s that o n l y a small p a r t of
the i n c r e a s e d tax b u r d e n w ill fall on small c o r p o r a t i o n s .
C o r p o r a t i o n s w i t h a s sets of less t h a n o n e - q u a r t e r m i l l i o n
d o l l a r s w i l l p a y a b out 5 p e r c e n t of the a d d i t i o n a l tax,
w h e r e a s those w i t h assets above $50 m i l l i o n w i l l p a y over
45 percent.
The r e d u c t i o n in the n u m b e r of c o r p o r a t i o n s subject
to the p r o f i t s tax is a c c o m p l i s h e d m a i n l y b e c a u s e of the
s u b s t i t u t i o n of a m i n i m u m c r e d i t for the specific e x e m p t i o n
a l l o w e d u n d e r the W o r l d War II law.
U n d e r the p r i o r law
the $ 10 ,0 0 0 specific e x e m p t i o n was g r a n t e d to all c o r p o r a
tions.
The size of the e x e m p t i o n was n e c e s s a r i l y l i m i t e d
by revenue considerations.
The m i n i m u m c r e d i t of $ 2 5 , 0 0 0
p r o v i d e d u n d e r the H o use bill Is o p e r a t i v e o n l y w h e r e the
c o r p o r a t i o n ^ o wn e x c e s s p r o f i t s c r e d i t u n d e r the bill is
less t h a n $25,000.
It thus c o n c e n t r a t e s r e l i e f in the
lower income c o r p o r a t i o n s and p r o v i d e s a l a r g e r f a v o r a b l e
a r e a for the d e v e l o p m e n t of small and n e w b u s i n e s s e s .
It
also r e d u c e s s u b s t a n t i a l l y the p o s s i b l e b u r d e n of r e l i e f
claims.
A $ 2 5 , 0 0 0 m i n i m u m cred i t u n d e r the W o r l d Wa r II
tax w o u l d have e l i m i n a t e d about o n e - q u a r t e r of all r e l i e f
claims.
L i b e r a l i z a t i o n of cr e d i t s
The H o u s e bill r e t a i n s the o p t i o n a l use of a base
p e r i o d e a r n i n g s c r e d i t or an i n v e s t e d c a p i t a l c r e d i t as
was p r o v i d e d in the W o r l d War II law.
H o w ever, it m a k e s
s u b s t a n t i a l r e v i s i o n s in both of these credits.
T a x p a y e r s are g i v e n g r e a t e r l e e w a y t h a n u n d e r the
W o r l d W a r II l aw in c o m p u t i n g a v e r a g e base p e r i o d earnings.
The bill p e r m i t s a c o r p o r a t i o n to take the bes t three of
the four y e ars 1 9 4 6 - 1 9 4 9 and in a d d i t i o n to c o u n t as zero
223
- 6 -
a n y r e m a i n i n g loss years,
the W o r l d War II l aw
t a x p a y e r s were r e q u i r e d p a r t i a l l y to include their w o r s t
year; net losses in a n y or the r e m a i n i n g three y e a r s were
s u b t r a c t e d in full f r o m p r o f i t s of other y e a r s in c o m p u t i n g
the a v e r a g e .
A f u r t h e r im p o r t a n t change is m a d e in c o m p u t i n g base '
p e r i o d Income.
H. R. 9827 p r o v i d e s f or an u p w a r d a d j u s t
m e n t in the av e r a g e e a r n i n g s base to r e f l e c t o n e - h a l f of
the net a d d i t i o n s to c a pital m a d e in 19 48 a nd all a d d i t i o n s
mad e in 1949, i r r e s p e c t i v e of w h e t h e r the net a d d i t i o n s
were in the f o r m of e q u i t y capital, r e t a i n e d e a r n i n g s or
b o r r o w e d capital.
This p r o v i s i o n alone will a c c o r d v e r y
s u b s t a n t i a l be n e f i t s to a n u m b e r of i m p o r t a n t i n d u s t r i e s
w h i c h e x p a n d e d s t e a d i l y or at an i n c r e a s i n g rate d u r i n g
the base period.
In a d d i t i o n to r e f l e c t i n g actu a l ch a n g e s
in c a p i t a l i n v e s t m e n t d u r i n g the base period, this m o d i f i
c a t i o n a v oids the n e c e s s i t y for r e t a i n i n g the s o - c a l l e d
g r o w t h f o r m u l a " of the old law.
H o w ever, the bill does
c o n t a i n a r e s t r i c t e d p r o v i s i o n for r e c o g n i z i n g g r o w t h of
p r o f i t s w h ere this m a y not be a d e q u a t e l y r e f l e c t e d
t h r o u g h the a l l o w a n c e for capital a d d i t i o n s in the base
period.
Two important changes have been made In the invested
capital credit.
One has to do with the rate of return
allowed in computing the credit and the other with the
treatment of borrowed capital.
The H o u s e bill r e t a i n s the p r i n c i p l e of a l l o w i n g
h i g h e r r a t e s of r e t u r n for small c o r p o r a t i o n s t h a n for
large corpo r a t i o n s .
As shown below, the r a t e s u n d e r the
bill are 1 2 p e r c e n t on the first $5 m i l l i o n of i n v e s t e d
capital, 10 p e r c e n t on the next $5 m i l l i o n a n d 8 p e r c e n t
on the a m ount over $ 10 million.
These r a t e s e x c e e d those
a l l o w e d d u r i n g W o r l d War II by 50 p e r c e n t or more.
224
Invested capital
brackets
(millions)
$5
$5 - 1 0
Under
Over 10
: Invested capital allowance
:World War : H. R.
: Percent
:"II law
: 9827
: Increase
8%
6
5
12%
10
8
5C$
66-2/3
60
The borrowed capital allowance has been revised to
provide a credit equal to one and one-third of the interest
paid.
By making the allowance proportional to the actual
interest obligations assumed by each corporation, a serious
shortcoming of the old law is avoided.
The World War II
law provided for the inclusion of 50 percent of borrowed
capital in invested capital, and at the same time dis
allowed 50 percent of the deduction for interest paid.
In
effect this rule gave taxpayers the benefit of one-half
the difference between the statutory rate on invested
capital and the rate of interest on borrowed capital.
As
a result, taxpayers borrowing at interest rates in excess
of the statutory rates on invested capital wore actually
penalized.
Those on the other hand with access to very
low interest rates were given a relatively large advantage.
Under the. prior law the maximum net benefit obtainable
on borrowed capital for a corporation borrowing at 6 per
cent was one percent.
Under the House bill the credit
would be increased by one-third of 6 percent for all cor
porations borrowing at that rate, thus increasing the net
benefit in such cases to 2 percent of the borrowed capital.
New capital allowance
The allowance for new capital invested after the base
period has been basically revised h y providing a uniform
rate of return for all corporations regardless of the type
of credit elected.
The allowance is a flat 12 percent of
new equity capital and retained earnings, plus 133 - 1/3
percent of interest paid on additions to borrowed capital.
225
P
This treatment removes a serious defect in the old
lawUnder that lav; corporations electing the base-period
earnings credit received an allowance for capital added sub
sequent to the base period only if the addition took the
form of new equity capital paid into the corporation.
Under^the revised treatment no penalty is placed upon the
election of the base period earnings credit.
Credit for new businesses
One of the most difficult problems arising under the
World War XI tax, and one which resulted in a large number
of claims for relief, was the treatment of firms beginning
operations during or after the base period.
Such firms
were generally required to use the invested capital allow
ance ^or to apply for relief under Section 722(c), which
provided for reconstruction of a hypothetical base-period
experience.
The^approach to this problem taken under H. R. 9827 is
more logical and will simplify the development of an earning!
credit where the taxpayer is classified in an industry which
has experienced a rate of return higher than the statutory
allowance on invested capital.
The bill provides new
corporations with an alternative credit equal to the average
rate of return experienced by their respective industries
in the base period.
Under this formula most new firms will
receive substantially more generous credits than they would
under the invested capital method.
An alternative credit based on industry experience is
provided also to corporations whose incomes increase sub
stantially as a result of the introduction of new products.
These provisions will be of great importance in
stimulating new business.
The Committee may be interested at this point in what
has been done about Section 722 of the World War II law.
This section specified in considerable detail the cireurnstances under which taxpayers would be entitled to relief
The^law encouraged the filing of about 5^*000 claims for
relief and was difficult to administer.
226
- 9 -
As r e p o r t e d to the House, the bill c o n t a i n s no ge n e r a l
r e l i e f p r o v i s i o n c o m p a r a b l e to the f o r m e r S e c t i o n 7 2 2 . It
was c o n s i d e r e d d e s i r a b l e to a v o i d the d i f f i c u l t i e s c r e a t e d
b y the old p r o v i s i o n by a d o p t i n g the r e l a t i v e l y m o r e liberal
c r e d i t p r o v i s i o n s e n u m e r a t e d above.
The D e p a r t m e n t shares
the v i e w of the C o m m i t t e e on W ays an d M e a n s that this is
a d e s i r a b l e step and that it w o u l d r e m o v e the basis for
m u c h of the c r i t i c i s m d i r e c t e d at the o l d law.
í f t ^ g r a t i o n of income
tax and e x c e s s p r o f i t s
tax
T e c h n i c a l d i f f i c u l t i e s e x p e r i e n c e d in the a d m i n i s t r a
t i o n of the p r i o r e x c e s s p r o f i t s tax l a w will be l a r g e l y
a v o i d e d t h r o u g h the i n t e g r a t i o n of the income a nd e x c e s s
p r o f i t s taxes as p r o v i d e d in the bill.
By imposing both
t a xes u n d e r C h a p t e r 1 of the I n t e r n a l R e v e n u e Code, and
b y a s s e s s i n g and c o l l e c t i n g t h e m as one tax, in t e r e s t
c o m p u t a t i o n s a nd the st a t u t e s of l i m i t a t i o n s w o u l d a p p l y
uniformly.
F o r c o n v e n i e n c e in c o m p u t i n g the taxes, the
income tax w o u l d a p p l y to the e n t i r e a m o u n t of net income.
An a d d i t i o n a l surtax of 30 p e r c e n t a g e p o i n t s w o u l d a p p l y
to the a d j u s t e d e x c e s s p r o f i t s net income w h i c h t o g e t h e r
w i t h the ^5 p e r c e n t n o rmal tax a n d Surtax, w o u l d m a k e a
total rat e of 75 p e r c e n t on e x c e s s profits.
U N D E S I R A B L E F E A T U R E S OF THE B I L L
A l t h o u g h the l i b e r a l i z e d f e a t u r e s of the H o u s e bill
g e n e r a l l y a c c o r d w i t h the views of the D e p a r t m e n t , the
bill c o n t a i n s some p r o v i s i o n s w h i c h tend to c r eate r a t h e r
t h a n a l l e v i a t e inequities.
A s u b s t a n t i a l amou n t of r e v e n u e is lost in the House
bil l b y . g i v i n g p r e f e r e n t i a l t r e a t m e n t a m o u n t i n g to virtual
e x e m p t i o n of c e r t a i n types of b u s i n e s s e s w h i c h are
g e n e r a l l y subject to public r e g u lation.
The bill w o u l d
a l l o w p u blic u t i l i t i e s r e g u l a t e d by State a u t h o r i t i e s an
a l t e r n a t i v e credit.
It w o u l d p e r m i t t h e m to r e c e i v e
(before the a p p l i c a t i o n of a n y p r o f i t s tax) a net r e t u r n
a f ter income taxes of 6 p e r c e n t of their total investment,
i n c l u d i n g c a p i t a l stock, r e i n v e s t e d e a r n i n g s and b o r r o w e d
capital.
In the case of u t i l i t i e s s u b ject to F e d e r a l
10
227
r e g u l a t i o n , n o t a b l y r a i l r o a d s and other i n t e r s t a t e carriers,
the c o r r e s p o n d i n g tax- free r e t u r n is set at 5 percent.
The a d o p t i o n of this p r o v i s i o n w o u l d b r i n g into q u e s
t i o n the u n d e r l y i n g p r i n c i p l e s of the income tax.
It
w o u l d p r o v i d e an e x e m p t i o n or e x c l u s i o n f r o m p r o f i t s tax
at a time w h e n a d d e d b u r d e n s are i m p o s e d on others.
If we should a c c e p t the p r i n c i p l e of g r a n t i n g tax e x e m p
tions on the basis of net income a f t e r tax, the F e d e r a l
tax s y s t e m w o u l d lose its e f f e c t i v e n e s s f or e q u i t a b l y d i s
t r i b u t i n g tax burdens.
This p r o v i s i o n w o u l d d i s c r i m i n a t e a m o n g d i f f e r e n t
u t i l i t i e s and b e s t o w special b e n e f i t s p r i m a r i l y on large
companies, r e g a r d l e s s of the fact that i n d u s t r y m a y be
e n j o y i n g s u b s t a n t i a l inc r e a s e s in profits.
A n o t h e r p r o v i s i o n of the bill, S e c t i o n 4A8, w o u l d
g r e a t l y e n l a r g e the area of p r e f e r e n t i a l t r e a t m e n t in the
m i n i n g industry.
I a m f u l l y aware of the i m p o r t a n c e of
s e c u r i n g strategic m i n e rals.
However, it w i l l r e q u i r e
g r eat care to f o r m u l a t e l e g i s l a t i o n in the i n t e r e s t of
d e f e n s e p r o d u c t i o n w i t h o u t g r a n t i n g u n j u s t i f i e d b e n e f i t s or
e n c o u r a g i n g u n p r o d u c t i v e d i v e r s i o n of e s s e n t i a l resources.
W h e n this m a t t e r r e c e i v e s y o u r c o n s i d e r a t i o n , the staff will
be p r e p a r e d to place the p e r t i n e n t f a c t s b e f o r e you.
The C o m m i t t e e m a y also desire to give a t t e n t i o n to
r e s t r i c t i n g the cred i t for n e w i n v e s t m e n t to p r o d u c t i v e
a s s e t s u s e d in the business.
It is the p u r p o s e of the
c ’edits for n e w c a pital additions, b o t h in the base p e r i o d
and in the taxable year, to p r o v i d e an a d d i t i o n a l c r edit for
n e w i n v e s t m e n t w h i c h Is p r e s u m e d to be r e f l e c t e d in i n c r e a s e d
e a r n i n g s of the c o r p o rations.
If such c r e d i t is g i v e n for
u n d u e a c c u m u l a t i o n s of cas h and other n o n - p r o d u c t i v e assets,
this p u r p o s e w ill be d e f e a t e d and u n w a r r a n t e d b e n e f i t s and
a b u s e s will result.
In a d d i t i o n to the above p r o v i s i o n s w h i c h r a ise q u e s
tions of f u n d a m e n t a l equity, there are v a r i o u s tec h n i c a l
m a t t e r s w h i c h the C o m m i t t e e m a y also w i s h to consider.
The
staff will be a v a i l a b l e to di s c u s s these at the c o n v e n i e n c e
of the C o m m ittee.
228
- n
-
ENFORCEMENT PROBLEMS
It w o u l d be a grave o m i s s i o n for me to pass over .>o'ne of
the m o s t p e r v a s i v e c r i t i c i s m s w h i c h w i l l c o n f r o n t y o u in
c o n s i d e r i n g this bill.
I r e f e r to the v i e w f r e q u e n t l y
e x p r e s s e d that this type of tax m u s t i n e v i t a b l y e n c o u r a g e
w a s t e f u l and e x t r a v a g a n t e x p e n d i t u r e s and stimulate, r a t h e r
t h a n retard, inflation.
This c l a i m r e s t s o n the a s s u m p t i o n
that the p r o f i t s tax will induce b u s i n e s s m e n to m a k e e x p e n d i
tures s o l e l y because m o s t of the b u r d e n w o u l d be borne b y
the G o v e r n m e n t t h r o u g h a r e d u c t i o n in the r e v e n u e collected.
W h e t h e r this p r o f i t s tax will e n c o u r a g e u n e c o n o m i c a l
sp e n d i n g w ill d e p e n d in part on the spirit w i t h w h i c h
b u s i n e s s a p p r o a c h e s its tas k In this eme r g e n c y .
Considera
tio n of the a r g u m e n t cann o t be l i m i t e d to tax c a l c u l a t i o n s
alone.
C l e a r l y the entire r a nge of p r i n c i p l e s g o v e r n i n g
b u s i n e s s d e c i s i o n s is of more f u n d a m e n t a l i m p o rtance.
No
tax law, h o w e v e r c a r e f u l l y framed, ca n e n s u r e full c o o p e r a
t i o n b y 100 p e r c e n t of busin e s s in the n a t i o n a l effort.
Bu t
in m y v i e w the c o u n t r y c a n have c o n f i d e n c e that the m a j o r i t y
of b u s i n e s s m e n , like all others, will sh o u l d e r the i n c r e a s e d
tax b u r d e n f o r c e d u p o n us and co n t i n u e to do t h eir part.
O ur e x p e r i e n c e w i t h the w a r t i m e l aw i n d i c a t e s that the
p r a c t i c e of w a s t e f u l e x p e n d i t u r e s was less w i d e s p r e a d than
supposed.
E s t a b l i s h e d b u s i n e s s o r g a n i z a t i o n s were g e n e r a l l y
m o r e c o n c e r n e d w i t h o b s e r v i n g e f f i c i e n t and e c o n o m i c a l p r o
c e d u r e s e s s e n t i a l to their c o n t i n u e d su c c e s s t han w i t h
e x p l o i t i n g t e m p o r a r y w a r t i m e advantages.
T h ere were A
e x c e p t i o n s then, as there will be now, w h i c h tax a d m i n i s t r a
t i o n m u s t strive to prevent.
The e x p e r i e n c e g a i n e d d u r i n g
the last w a r wil l enab l e the B u r e a u of I n t e r n a l R e v e n u e to
s e g r egate r e a s o n a b l e f r o m u n r e a s o n a b l e d e d u c t i o n s m o r e
effec t i v e l y .
To support this effort, y o u r C o m m i t t e e m a y
w i s h to c o n s i d e r the d e s i r a b i l i t y of C o n g r e s s m a k i n g it
clear that it intends u n n e c e s s a r y and u n r e a s o n a b l e e x p e n d i
tures to be d i s a l l o w e d for tax purposes.
Chart 2
Effective Rates of Additional la x under H .R .9 8 2 7
111111
IÉÜ mm.
mm
mm
m m
X ftfU ftA
'#<*£§ period profits
<XSMaftiieSjKM M>y4f 1rtie 'iw auty ;
200
250
WMwm,
300 3l9eover
squats average of 3 best out of 4 years f & 4 6 ~ 4 9
Wmm
229
12
D I S T R I B U T I O N OP TAX
U n d e r -the.H o use bill t h è •rat e of tax on e x c e s s .p r o f its
w o u l d be 75 percent, i n c l u d i n g the r e g u l a r 45 p e r c e n t
n o r m a l tax a n d s u r t a x .
Chart 2 shows the a d d i t i o n a l tax that w o u l d be im p o s e d
on c o r p o r a t i o n s subject to this tax.
For corporations with
c u r r e n t n et income e q u a l to t h eir a v e r a g e b a s e - p e r i o d
e a r n i n g s the tax w o u l d a m o u n t to 4.5 p e r c e n t of total net
income.
The e f f e c t i v e rate of tax w o u l d rise to 13 p e r
c e n t of total net income w h ere c u r r e n t e a r n i n g s are e q ual
to 15 0 p e r c e n t of the b a s e ^ p e r l o d a v e r a g e a nd to a p p r o x i
m a t e l y 1 7 p e r c e n t where c u r r e n t e a r n i n g s are twice the basep e r i o d average.
The m a x i m u m e f f e c t i v e rat e of 22 percent,
m a k i n g a total tax of 67 percent, w o u l d be r e a c h e d at the
p o i n t w h e r e c u r r e n t e a r n i n g s are s l i g h t l y m o r e tha n three
t i m e s the b a s e - p e r i o d average.
R E V E N U E YE I BP OF T H E B I L L
„ _1
y i e l d of the H o u s e bill is e s t i m a t e d to
fall o h o r t o f the P r e s i d e n t ' s r e c o m m e n d a t i o n by a b out $ 1
illion.
Part of this c o u l d be r e c o v e r e d b y modifying: the
o b j e c t i o n a b l e f e a t u r e s of the bill to w h i c h ^ have J e f e S e d
Housed
r ® a s °n for the r e d u c e d y i e l d u n d e r the
eaual tn Rs
6 a d o p t l o n of a b a s e - p e r i o d e a r n i n g s c r edit
e q ual to 85 p e r c e n t of the a v e r a g e for the three best vears
Co
om^miittttee e
o
e
o n h Ways
W 7 5 -P
T Means.
r
flgUre Whioh
on
a nd
U n ^ ess
the
b il1
1 suS g e s t e d to the
is m o d i f i e d to incre a s e
its y i e l d
it
reneri?°fl
the obj'e o t l v e set b y the P r e s i d e n t before the
r e c e n t d e t e r i o r a t i o n in the i n t e r n a t i o n a l situation.
The
increase in c o r p o r a t i o n taxes p r o v i d e d in the bill is
s h o u l f h / " r o l ^ ion t0 the u p w a r d surge in profits,
it
Dorati on =!
that a 1 1 small c o r p o r a t i o n s a nd corc r e d i t ™ i n b c u r r e n t income not in e x c e s s of the a l l o w e d
c r e d i t s w o u l d be exempt.
230
- 13 -
In c o n s i d e r i n g the e f f e c t or these i n c r e a s e d taxes,
it is imp o r t a n t to have in m i n d the e x t r e m e l y liberal
m e t h o d p r o v i d e d for c o m p u t i n g b a s e - p e r i o d earnings.
The
a l l o w a n c e of the three best out of f o u r y e ars y i e l d s a
figure w h i c h w o u l d u s u a l l y be s u b s t a n t i a l l y above the
actual e a r n i n g s in the e x t r e m e l y p r o s p e r o u s four v e ers
w h i c h f o l l o w e d W o r l d W ar II.
7
I urge y o u r C o m m i t t e e to r e v i e w carefu3.1y the m e t h o d s
b y w h i c h this bill c an be a m e n d e d to i n c rease the y i e l d
f r o m the t a x a t i o n of c o r p o r a t i o n p r o f i t s to m e e t the
b i l l i o n goal set by the President.
B y a d d i n g $4 b i l l i o n
to the r e v e n u e - p r o d u c i n g s t r e n g t h of the tax system, this
C o n g r e s s will c o n t r i b u t e s u b s t a n t i a l l y to our f i n a n c i a l
preparedness.
oOo
231
Exhibit to Statement of Secretary Snyder
Comparison of House bill* with
World War II tax under
Bevenue Act of 19*42
A. Major Items
Subject
House Bill
World War II Treatment
1.
Bate of tax
75$
95$ (85.5$ after post
war refund)
2.
Overall rate limitation
on income and excess
profits taxes
67$
80$ (72$ after post
war refund)
3*
Minimum credit or ex
emption
*4.
Choice of earnings
credit or invested
capital credit, which
ever produces lower tax
5.
Base period
$25,000 minimum credit
Yes
Yes
19^6 through 19^9
6, Earnings credit— elimi
(a) Taxpayer may select
best 3 out of 4
base period years
nation of poor years in
base period
(b) Any deficits in 3
years chosen may be
raised to zero
.
7.
*
Earnings credit— ad
justment in average
base period earnings
$10,000 exemption
Seduced to
1936 through 1939
)Ho selection of years
)permitted. Taxpayer
) could raise the worst
) year to 75$ of the
)average of the other
) 3 years, but could
) not adjust any re)maining deficit year
) upward.
85$
Including proposed Ways and Means Committee amendments.
Seduced to 95$
232
- 2 -
Subject
g„
World War II Treatment
C M
r— Î
9,
Invested capital credit
— rate of return on
equity capital and re
tained earnings;
$0 — $5 million
$5 - $10 million
Over $10 million
House bill
10$
8$
6*
5$
Invested capital credit
— rate of return on
borrowed capital;
(a) Interest deduction
In full
Limited to one-half
(b) Additional allowance
1/3 of interest rate
with a ceiling of
3$ and, in the case
of long-term obli
gations, a floor
of 1$
l/2 of above rates for
equity capital
(c) Total allowance
133 $ of interest
From 2-l/2$
borrowed
plus l/2
interest
payable (subject
to floor and ceil
ing noted above)
10. Earnings credit—
additions to capital
during base period
(a) Upward adjustment
in earnings credit
permitted for
any net addi
tions to
equity capital,
retained earn
ings and bor
rowed capital
in 19^9 and for
one—half of any
such additions
in 19Ug
to
of
capital,
the
rate
Ho adjustment in the
earnings credit for
such additions was
allowed, except
where taxpayer qual
ified for relief
under section J22
233
- 3v
Subject
10, Earnings credit—
additions to capital
during base period
(continued)
11 * Earnings credit and
invested capital
credit— upward
adjustment for net
additions to equity
capital and re
tained earnings
after base period
House bill
World War II Treatment
(b) Hate of upward ad
justment for such
net additions to
equity capital
and retained
earnings— 12$
(c) Hate of upward ad
justment for such
net additions to
borrowed oapital
— 1/3 of the
interest rate
All taxpayers— allowance at rate of 12$
on both new equity
capital and new retained earnings
(
(
(
(
(
I
{
(
(
(
(
(
(
(
c
c
{
(
(
(a) Taxpayers using
earnings credit—
allowance at rate
of 8?o on new
equity capital but
no allowance for
new retained
earnings
(b) Taxpayers using
invested capital
credit— allowance
for new retained
earnings at the
applicable rates
shown under item 6,
and allowance for
new equity oapital
at 125 $ of such
rates
12, Earnings creditdownward adjustment
for net reductions
in equity capital
and retained earn
ings after base
period
At rate of 12$
At rate of 6$ in case
of equity capital; no
downward adjustment
for net reductions in
retained earnings
13. Earnings credit—
additions or re
ductions in bor
rowed capital
after base
period
Adjustment upward
or downward eaual
to 1/3 of the
interest rate
Ho adjustment
-kl
Subject
lH.
Hew corporations (or
ganized after begin
ning of base period)
15«
Substantial change
during base period
in product or
services by corpo
ration organized
before 1 9 ^ 6
lo.
Smaller corporations
(organized before be
ginning of base
’
period) experiencing
growth in the base
period
House bill
As an alternative to its
usual credits, the taxm y apply to its
invested capital after
3 years of growth (or
at the end of the base
period, if later) the
average rate of return
on invested capital for
Its industry in the base
period
As an alternative
credit, taxpayer may
apply industry rates
of return to its
invested capital (as
described under
item 1 5 )
As an alternative
credit, such a tax
payer meeting the
following require
ments may use 1949
earnings or the
average of l j k S
and 19^9 earnings
as its average
base period earn
ings :
(a) If in the last
half of the base
period its payroll
was 30$ higher or
its gross receipts
were 5 0 $ higher than
in the first half of
the base period; and
(b) Its assets do not
exceed $20 million(tax
basis) as of the begin
ning of the base period-
234
World War II Treatment
( (a) Taxpayers organ(
ized after the
(
base period were
(
required to use
(
the invested
(
capital credit
(
unless they qual(
ified for general
(
relief
( (b) Taxpayers organ(
ized in the base
(
period could, in
(
addition, compute
(
an earnings
credit; vacant
(
years were filled
(
in at 8$ of in(
vested capital
(
at close of base
(
period
Taxpayer could apply
for general relief
Taxpayers whose aver
age earnings in the
last half of the
base period exceeded
their average earnings
in the first half of
the base period could
use, as an alternative
credit, the sum of
(a) their average
earnings in the last
half of the base period
and (b) one-half of the
excess of that average
over their average earn
ings in the first half
of the base period.
However,the credit
so computed could in
no event exceed their
earnings in the best
year of the base period.
235
- 5 Subject
17,
Exclusion of nonrecur
rent items of income
and deductions in com
puting excess profits
net income
IS.
Excess profits
credit ©f public
utilities
19.
Carrybacks and
carryovers ?
(a) Net operating
loss
(b) Unused excess .
profits credit
20,
Relationship of
income and excess
profits taxes
House bill
;Yes, with several v
changes in World War XI
law
Option to file Con
solidated returns
Yes
Minimum credit of 5$
(after taxes) on both
equity and borrowed
capital in case of
airlines and rail«
roads and 6% in case
of most other public
utilities
No special treatment
1-year carryback
and 5-year carry
over 1-year carryback
and 5~yQar carry-
2-year carryback and
2-year carryover
To be integrated
into a single tax
for administrative
purposes, with ex
cess profits subject
to both (l) the > 5 $
income tax and (2)
a $Ofo surtax
Two separate taxes
B.
1.
World War II Treatment
2-year carryback and
2-year carryover
Minor Items
Yes
Yes
236
-
Subject
2*
Base period of fiscal
year taxpayers
3,
Exemption of personal
service corporation
whose stockholders
elect to be taxable
, upon its income
6
-
House bill
Fiscal year taxpay
ers (other than
those whose years
end before April )
would be required
to use the U cal
endar years 19^+6% as their base
period
World War II Treatment
Since fiscal year taxpay*
ers were not required to
adjust to the U calendar
years 193£*-39» as mucil
as 11 months of the
first taxable year (19^0)
was sometimes included
in the base period
Yes
Yes
Î+.
Earnings credit-relief
by disallowance of ab
normal deductions in
base period
Yes
Yes
5,
Earnings credit-relief
from abnormalities in
base period
Yes
Yes
'6.
Earnings credit-relief
from abnormalities in
tax period
Yes
Yes
7.
Earnings credit-allo
cation of earnings ex
perience to successor
corporations in case
of corporate split-up
Allocation permitted
8.
Exemption for strategic
minerals (sec. 73l)
Yes (World
War XI list expanded
to include uranium
and others and De
fense Minerals
Administration
authorized to
expand further)
Split-up corporations
could not use prior
earnings experience
Yes
237
- 7~
Subject
9*
Special treatment for
excess'"Output of-cer
tain derletable re
sources (sec, 735)
House bill
World War II Treatment
Yes
Yes
10,
Relief for installment
basis taxpayers
11,
Relief for taxpayers
reporting income
from long-term con
tracts upon the com
pleted contract
basis
Yes
Yes
12,
Deferment of tax pay
ment in dase of abnor
mality
Yes
Yes
13,
Railroad lessor-*
lessee corporations
Change to accrual basis
was permitted for'tax
period but not for base
period
Change to accrual
basis permitted for
both tax period and
base period
(a) Alloca tion of
earnings
credit per^aitted
(b) Dayments by
lessee of lessor* s taxes exeluded from lessor1s income
)
)
)
)
)
Do special
treatment
i
I
)
)
ity.
Banks using reserve
method of accounting
for bad debts
Permitted to abandon
reserve method for
| excess profits tax
i purposes
Banks did not use re
serve method in 19^0-45
15.
Invested capital
credit-deficits
in capital
j Recent deficits do
I not reduce invested
| capital
Deficits did not reduce
invested capital
< s ~
¿
(T*
Commissioner of Customs Frank D
owannounced today thatACustoms
servic^will “
be available on Sunday, December 10,19>50,
50, to
to importers
importers
I
J
*-a
requesting it, upon condition that the Government be reimbursedA
for overtime pay of employees.
# 5 y*
Under theee conditions. Collectors of Customs have been authorized
<A
T
to accept entries, warehouse withdrawals and estimated duties between
the hours of 8t30 a.m. and 5 p.m. on Sunday•cte-on aonom
m
otintIon to
^importers of late-arriving merchandise that m
ay be affected,dutywise,
by the partial termination of the Chinese trade agreement.Under
JRrsaoSaHahr of the Predident issued October 13»1950,^higher ratesfof
duty apply to m
any classes of such goods December 11 and thereafter.
Customs offices will be closed as usual on Saturday,December 9.
LJZ&
f —
¿ S *
* *-C .
L<?
***->
L^Vw^/V^V<J
T^- Z ' U
.
i /k
TREA SU RY DEPARTM ENT
WASHINGTON, D .C .
Information Service
239
I M M E D I A T E RELEASE,
Wednesday, December
6 , 1950.
S -2 5 2 9
C o m m i s s i o n e r of Cu s t o m s F r a n k D o w a n n o u n c e d t o d a y that
c e r t a i n C u s toms services w i l l he a v a i l a b l e on Sunday,
D e c e m b e r 10, 1950, to i m p orters r e q u e s t i n g it, u p o n c o n d i t i o n
that the G o v e r n m e n t be r e i m b u r s e d b y i n t e r e s t e d p a r t i e s for
n e c e s s a r y o v e r t i m e p a y of employees.
C o l l e c t o r s of Customs h a v e b e e n a u t h o r i z e d to a c c e p t
entries, w a r e h o u s e w i t h d r a w a l s a nd e s t i m a t e d d u t i e s b e t w e e n
the h o u r s of 8 ?30 a.m. and 5 p.m. o n Sunday.
Several requests
for this service h a v e b e e n r e c e i v e d fro m i m p o r t e r s of latea r r i v i n g m e r c h a n d i s e w ho m a y be affected, dutywise, b y the
p a r t i a l t e r m i n a t i o n of the Chinese trade a g r e e m e n t .
Under
p r o c l a m a t i o n of the P r e s i d e n t issu e d O c t o b e r 12, 1950 h i g h e r
rates of d u t y a p p l y to m a n y classes of such goods D e c e m b e r 11
a nd t h e r e a f t e r .
In the past, u n der similar ci r c u m s t a n c e s , e n t r i e s have
not b e e n a c c e p t e d outside o r d i n a r y b u s i n e s s hours, and the
i n n o v a t i o n is in a c c o r d w i t h the l o n g - r a n g e p r o g r a m of
I m p r o v e d service by Customs to the public.
Customs
D e c e m b e r 9*
offices w i l l be
closed as u s u a l on Saturday,
0O0
Luij
TREASURY DEPARTMENT
fîseal Servi cj
Washington, £ S 9 S £ ^
STATUTORY DEBT LIMITATION
4 s o S November 30* 1950
‘950
Section 21 of Second Liberty Bond Act, as amended, provide« that the face amount of obligations issued
tinder 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
I.)
exceed.in the aggregate
(XX),COO,COO (Act of June 26, 1946) U.S.C., title Si, sec* •/6'ft), outstanding at
any one time* For purposes of this section the current redemption value of any obligation issued an a discount
basis which is redeemable prior to maturity at the option of the holder shall be considered as its face amount,"
The following table shows the face amount of obligations outstanding and the face amount which can still
be issued under this limitation;
$ 275 ,0 0 0 ,000,000
Total face amount that may be outstanding at ary one time
Outstanding
Obligations issued under Second Liberty Bond Act, as amended
___.______$1 3 ,608,030,000
of ir/iebteiness — ..
5,372,668,000
Certificates
Treasury notes ------- --- ------- I
Bonds Treasury__ ___ ______________ _—
Savings .(current redemp, value )...„
Depoe itary__ «____ .,___________ .....
Armed Forces Leave
___ _______
» 5 . 8 5 5 , 5 7 5 , 0 0 0 &■ 6 ^ , 8 3 6 , 2 7 3 . 0 0 0
953.030.000 156,160,892,933
Investment series.........______......____
Special Funds Certificates
tl
96,670,157,300
58,027,»88,783
286,505,500
223,711,350
_ _ _ _ , r,,_
indebtedness.1 9 , 1 9 6 , 5 6 3 , 0 0 0
Treasury notes
________...._____
1 4 , 5 3 5 •H 7 «000
Tot al interest-bear ing_____________________........
Matured, interest— ceased ___________ _________ _____ _ _. . .
Bearing no interest;
War savings stamps ______ ________ _«...
Excess profits tax refund bonds....
—
320,367,950
»7,»3»,915
2,886,697
Special notes of the United States;—
1.270.000.000
Internat’l Monetary Fund series — „„
Total__ __________________ ,___________
Guaranteed obligations (not held by Treasury);
Interest-bearing:
Debentures; f.H.A. ------- -—
Demand obligations; C.C.C,__ _______
33.».733;
,680a000
2 5 4 » 7 2 8 , 8 4 5 »9 3 3
,
1 9 900,886
___
1,440,888
Matured, interest—ceased----- ---- ---- ------
1.320.321.612
256,369,5 3 5 , »95
w
21,341,774
2,162,750
*3.504,524
256,393,040,019
Grand total outstanding------------------------------ ---- —
Balance fa c e amount of o b lig a tio n s issu ab le under above a u th o r it y ------ --------------------------------------r p H z ? » 9 5 9 9P ± -
1
Peconcilement with Statement of the Public Debt (Daily Statement of the United States Treasury,
N o v e m b e r 30 ,
December
Outstanding Total gross public debt
------ ------- -—
*-------- -— — - --- Guaranteed obligations not owned by the Treasury___ ________________________—
Total gross public debt and guaranteed obligations _________________— —
Deduct - other outstanding public debt obligations not subject to debt limitation
j
0*0
1950
1, 1 9 5 0 )
*57,078,619,514
*3,504,5*4
*57,100,124,038
[ 707,084,019.
*56,393,040,019
STATUTORY DEBT LIMITATION
AS OF November 30, 1950
December
1950
Section 21 of Second Liberty Bond Act, as amended, orovides 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 (Act of June 26, 191*6$ U.S.C., title 31,
sec. 757b), outstanding at any one time. For purposes of this section the current
redemption value of any obligation issued on & discount basis which is redeemable
prior to maturity at the option {¡tit the îioldft? shall be considered as its face
amount."
The following table shows the face amount of obligations outstanding and the
face amount which can still be issued under this limitation:
Total face amount that may be outstanding at any one time
$275,000,000,000
Outstanding
Obligations issued under Second Liberty Bond Act, as amended
Intere st-be aring:
Treasury bills.............. ... .$13,608,030,000
Certificates of indebtedness...
5,372,668,000
Treasury notes... ............... U5,855,575,000 $6U,836,273,000
Bonds -
241
Treasury....................... 96,670,157,300
Savings (current redemp, value) 58,027,1*88,783
Depositary...... ..............
286,505,500
Armed Forces Leave.......... .
223,711,350
Investment series...... .......
953,030,000 156,160,892,933
Special Funds Certificates of indebtedness... 19,196,563,000
Treasury notes............... , ll*,535,117,000
33,731,680,000
Total interest-bearing.... ............
2^,720, WT, 933
Matured, interest-ceased............ .
320,367,950
Bearing no interest;
War savings stamps........ ........
1*7,1*31*,915
Excess profits tax refund bonds,,.,
2,886,697
Special notes of the United States:
Internat’l Monetary Fund series,. 1,270,000,000
4
»612
Total.... ..................................... ..... 2 5 6 7 3 6 ^ ^ 9 5
Guaranteed obligations (not held by Treasury):
Interest-bearing:
Debentures: F.H.A.
.......
19,900,886
Demand obligations:C.C.C. ........
1,1*1*0,888
Matured, interest-ceased..... .................. ....
21,31*1,771*
2,162.750
6 , 501*;53*
Grand total outstanding...........................
256,393,0)40,019
Balance face amount of obligations issuable under above authority,.. 1 8 . 606, 959 , 98l
Reconcilement with Statement of*the Public Debt - November 30, 1950
(Daily Statement of the United States Treasury, December 1, 1950)
Outstanding Total gross public debt....................... ................... 257,076,619,511*
Guaranteed obligations not owned by the Treasury,......... .
23*501**5214
Total gross public debt and guaranteed o b l i g a t i o n s , 257,100,121**038
Deduct - other outstanding public debt obligations not subject to
debt limitation............ ................................
707,081*,019
256,393,01*0,019
S-2530
release morning newspapers,
Tuesday, December 12, 195Q»
The Secretaiy of the Treasury announced last evening that the tenders for
$1,000,000,000, or thereabouts, of 91-day Treasury bill® to be dated December U*,
1950, and to mature March 15, 1951, which were offered on December 7, were opened
at the Federal Reserve Banks on December 11*
The details of this issue are as followst
Total applied for - $1,771,310,000
Total accepted
- 1,001,581,000 (includes $11*0,109,000 entered on a
non-competitive basis and accepted in
full at the average price shown below)
Average price
- 99*659 Equivalent rate of discount approx* 1*351$ per annum
Range of accepted competitive bidst (Excepting one tender of $200,000)
Hi#»
Lc*
- 99.615 équivalant rats of discount approx. 1.286« per annum
- 99.655
»
» «
«
«
1.365, « „
(18 percent of the amount bid for at the low price was accepted)
Federal Reserve
Total
Total
District
Applied for
Accepted
Boston
# 16,1*73,000
1 15,973,000
New fork
1,250,320,000
558.315.000
Philadelphia
32.792.000
17.792.000
Cleveland
36,3W,000
32.581.000
Richmond
16,1*18,000
16,1*18,000
Atlanta
18.270.000
18.183.000
Chicago
190,505,000
151.595.000
St. Louis
22,71*1*,000
21.760.000
Minneapolis
9,670,000
8,960,000
Kansas City
28,51*1,000
28,51*1,000
Dallas
31*.968,000
31,521*,000
San Francisco
117,261*,000
99,931»,000
TOTAL
H,77l*,310,000
#1 ,001,581,000
243
RELEASE HORNING NEWSPAPERS,
Tuesday. December 12. 1950«
S-2531
The Secretary of the Treasury announced last evening that the tenders fof
$1,000,000,000, or thereabouts, of 91-day Treasury bills to be dated December 14,
1950, and to mature March 15, 1951, "which were offered on December 7, were opened
at the Federal Reserve Banks on December 11.
The details of this issue are as follows:
Total applied for - $1,774,310,000
Total accepted
- 1,001,531,000 (includes $1-40,4-09,000 entered on a
non-competitive basis and accepted in
full at the average price shown belo?f)
Average price
- 99*659 Equivalent rate of discount approx# 1.351$
per annum
Range of accepted competitive bids:
High
(Excepting one tender of $200,000)
- 99.675 Equivalent rate of discount approx. 1.286$
per annum
- 99.655 Equivalent rate of discount approx. 1.365$
per annum
Low
(18 percent of the amount bid for at the low price was accepted)
Federal Reserve
District
Total
Applied for
Total
Accepted
Boston
New York
Philadelphia
Cleveland
Ri chmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
$
16,¿73,000
1,250 320,000
32,792,000
36,345,000
16,4-18,000
18,270,000
190,505,000
22,74-4,000
9,670,000
28,541,000
34,968,000
117.264.000
$
$1,774,310,000
$1,001,581,000
TOTAL
oOo
O
O
to
U)
-o
15,973,000
558,315,000
17,792,000
32,581,000
16,418,000
18,188,000
151,595,000
21,760,000
8,960,000
28,541,000
31,524.000
- 3 -
x#HSfec
any State, or any of the possessions of the United States, or by any local tax' ing 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
as 'amended by Section
11$
1+2
and
117
(a)
Internal Revenue Code,
(1)
of the Revenue Act of
19U1,
the amount of discount at
which bills issued hereunder are sold shall not be considered to accrue until
such bills shall be sold, redeemed or otherwise disposed of, and such bills are
excluded from consideration as capital assets.
Accordingly, the owner of
Treasury bills (other than life insurance companies) issued hereunder need in
clude in his income tax return only the difference between the price paid for
such bills, whether on original issue or on subsequent purchase, and the amount
actually 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
-
unless the tenders are accompanied by an express guaranty of payment by an incorporated bank or trust company.
Immediately after the closing hour, tenders vail be opened at the Federal
Reserve Banks and Branches, foil Giving 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^ j
be final.
Subject to these reservations, non-competitive tenders for ¿200,000
or less without stated price freon 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 December 21, 19f>0 > 3*n cash or other immediately avaiitft
able funds or in a like face amount of Treasury bills maturing December 21, 1950»
Cash and exchange tenders will receive equ&l 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.
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
MîfflüCCÏ
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Thursday, December lU, 19$Q
»
---- 0 5
The Secretary of the Treasury, by this public notice, invites tenders for
$ 1,000.000,000 , or thereabouts, of
gl
in exchange for Treasury bills maturing
-day Treasury bills, for cash and
December
21, 195Q
, to be issued on
m
a discount basis under competitive and non-competitive bidding as hereinafter
mature
will mature
interest.
March 22. 19$1_____> 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
Tenders will not be received at the Treasury Department, Washington.
Each tender
must be for an even multiple of §1,000, and in the case of competitive tenders
the price offered must be expressed on the basis of 100, with not more than three
decimals, e. g., 99.92$.
Fractions may not be used.
It is urged that tenders
be made on the printed forms and forwarded in the special envelopes which m i l
be supplied by Federal Reserve Banks or Branches on application therefor.
Others than banking institutions will 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 from others must be accompanied
by payment of 2 percent of the face amount of Treasury bills applied for,
TREA SU RY DEPARTM ENT
Information Service
WASHINGTON. D .C .
247
R E L E A S E M O R N I N G N EWSPAPERS,
Thursday, D e c e m b e r 14, 1950-
S -2 5 3 2
The S e c r e t a r y of the Treasury, b y this p u b l i c notice, invites
tenders for $ 1 , 0 0 0 , 0 0 0 , 0 0 0 , or t hereabouts, of '
9 1 -day T r e a s u r y bills,
for cash and in exc h a n g e for T r e a s u r y b i l l s m a t u r i n g D e c e m b e r 2 1 ,
19 5 0 , to be i s sued o n a d i s c o u n t basis u n d e r c o m p e t i t i v e a n d 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 pro v i d e d .
The b i l l s of this
series w i l l be d a t e d D e c e m b e r 21, 1950, a nd w i l l m a t u r e M a r c h 22,
1951, w h e n the face amount w i l l be p a y a b l e w i t h o u t interest.
They
will be i s s u e d in b e a r e r f o r m only, a n d in d e n o m i n a t i o n s of $ 1 ,000 ,
$ 5 ,000 , $ 1 0 , 000 , $ 10 0 , 000 , $ 500 , 000 , a n d $ 1 ,000,000 ( m a t u r i t y value).
T e n d e r s w i l l be r e c e i v e d at F e d e r a l R e s e r v e B a n k s and B r a n c h e s
up to the c l o s i n g hour, two o ’c l o c k p.rn., E a s t e r n S t a n d a r d time,
Monday, D e c e m b e r 18, 1950.
T e n ders 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 for a n e v e n
m u l t i p l e of $ 1 , 000 , a nd in the case of c o m p e t i t i v e tenders the price
o f f e r e d m u s t be e x p r e s s e d on the basis of 1 0 0 , w i t h n o t m ore t h a n
three decimals, e. g., 99*925*
F r a c t i o n s m a y no t be. used.
It is
u r g e d that t e nders 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
special e n v e l o p e s w h i c h w i l l be su p p l i e d b y F e d e r a l R e s e r v e B a n k s or
B r a n c h e s o n a p p l i c a t i o 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 not be p e r m i t t e d to submit
tenders e x c e p t for their o w n account.
Te n d e r s w i l l be 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 banks and trust com p a n i e s a n d f r o m
r e s p o n s i b l e a nd r e c o g n i s e d d e a l e r s in i n v e s t m e n t s ecurities.
Te n d e r s
from others m u s t be a c c o m p a n i e d by p a y m e n t of 2 p e r c e n t of the face
a m ount of T r e a s u r y bills a p p l i e d for, unless the tenders are
a c c o m p a n i e d b y 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 by a n i n c o r p o r a t e d b a n k
or trust company.
I m m e d i a t e l y a f t e r the cl o s i n g hour, tenders w i l l be o p e n e d at
the F e d e r a l R e s e r v e B a n k s and Bra n c h e s , f o l l o w i n g w h i c h 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
amount a nd p r i c e range of a c c e p t e d b i d s . T h ose s u b m i t t i n g tenders
will be a d v i s e d of the a c c e p t a n c e or r e j e c t i o n thereof.
The
S e c r e t a r y of the T r e a s u r y e x p r e s s l y 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 ll tenders, i n w h ole or I n part, a n d his a c t i o n in
a ny suc h r e s p e c t shall be final.
Su b j e c t to these 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 tenders for $ 20 0 ,0 0 0 or less w i t h o u t stated p r ice
•from a n y one b i d d e r w i l l 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 December 1 , 1950, in cash
or othdr immediately available funds or in a like face amount of ...
ma ^uring December 21, 1950.
Cash and exchange
tenders will receive equal treatment,
Cash adjustments will be made
Detween the par value, of maturing bills accepted in
exchange and the issue price of the new bills.
?erived
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
under the Internal Revenue Code, or laws ambndato?y o?
’
suppiementary 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 o n ’
the principal or interest thereof by any State, or any of the
possessions of the United States, or by any local taxing authoritv
•.?? PurP ° ses Of taxation the amount of discount at which Treasury
bills are originally sold by the United States shall be considered
to be interest.
Under Sections 42 and 117 (a) (1) of tho T n t p w n i
Revenue Code as amended by Section 115 of the Revenue Act of 1941
the amount^of discount at which bills issued hereunder are sold
’
n°t be considered to accrue until such bills shall be sold
2 ? otiierwise disposed of, and such bills are excluded from
b i l l F f o t h e r h h B n 0! ? ^ ^ ass e t s * Accordingly, tho owner of Treasury
11fe insurance companies) issued hereunder need
income tax return only the difference between the
price pc„id for sucn bills, whether on original issue or on subsequent purchase, and the amount actually received either upon sale
or redemption at maturity during the taxable year for which the
return is made, as ordinary gain or loss.
„-t, „Treasury Department Circular Ho. 4l8, as amended, and this
notice, prescribe the terms of the Treasury bills and govern the
conditions of their issue.
Copies of the c ir c u la r m v b l o b t a i L d
from any Federal Reserve Bank or Branch.
2rcu±av
be obtained
oOo
IM
M
ED
IA
TER
ELEA
SE
December 12^. 1950
h
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, fromthe
beginning of the quota periods to December 2, 1950, inclusive, as follows:
Commodity
W
hole milk, fresh or
sour..............................
Cream, fresh or sour ...
(i)
Butter ..............................
Period and Quantity
Unit Imports as of
December 2,
of
Quantity
1950
Calendar year
3,000,000
Gallon
11,868
Calendar year
1,500,000
Gallon
1,166
Nov. 1, 1950Mar. 31, 1951
50,000,000
Pound
3,717
26,235,738
Pound Quota filled
Fish, fresh or frozen,
filleted, etc., cod,
haddock, hake, pollock,
cusk, and rosefish •.• Calendar year
White or Irish Potatoes:
certified seed ........... 12 months from 150,000,000
other ............................ Sept. 15, 1950 60,000,000
Walnuts ............................. Calendar year
5,000,000
Pound
Pound
13,089,320
24,349,876
Pound Quota filled
(l) Imports for consumption of butter under the quota of 5,000,000
pounds for the period July 16, 1950 - October 31, 1950, inclusive,
amounted to 8,384 pounds.
TREASURY DEPARTMENT
Washington
IMMEDIATE RELEASE
Thursday« December 14» 1950
S— 2533
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 December 2, 1950, inclusive, as followst
Commodity
Whole milk, fresh or
sour.*
... »•>•«»*•
Period and Quantity
Unit
of
Quantity
Imports as of
December 2,
1950
Calendar year
3,000,000
Gallon
11,868
Cream, fresh or sour.*..*
a)
Calendar year
1,500,000
Gallon
1,166
Butter ...........e...•.•«
Nov* 1, 1950Mar. 31, 1951
50,000,000
Pound
3,717
Fish, fresh or frozen,
filleted, etc*, cod,
haddock, hake, pollock,
cusk, and rosefish*.• **
Calendar year
.26,235,738
Pound
White or Irish Potatoes?
certified seed* •«•*•*•♦<*
other*•. « m m «•••• .* •**
12 months from
Sept. 15, 1950
150,000,000
60,000,000
Pound
Pound
Walnuts * • o*•*•
Calendar year
5,000,000
Pound
Quota filled
13,089,320
24,34-9,876
Quota filled
(1) Imports for Consumption of butter under the quota of 5,000,000
pounds for the period July 16, 1950 — October 31, 1950, inclusive,
amounted to 8,384 pounds.
J/ W r
jfTW ^sisw
if
¿/
IMMEDIATE RELEASE
December^* 1950
/T
The Bureau of Customs announced today preliminary figures show
ing the inports for consumption of commodities on which quotas were
prescribed by the Philippine Trade Act of 19U6, from January 1, 1950,
to December 2, 1950, inclusive, as follows:
Products of the
Philippines
: Established Quota
Quantity
:
: unit of : Imports as of
: Quantity : December 2, 1950
*
•
Gross
6!|1,96H
200,000,000
Number
762,083
HH8,000,000
Buttons ... ....
8^0,000
Cigars ..........
Coconut oil .....
Cordage......
6,000,000
Pound
n
Rice ........ .
i,oUo,ooo
n
(refined .....
Sugars
1,90^,000,000
Pound
6,500,000
Pound
(unrefined ...
Tobacco ##•♦••••#•••
iiU,olii,575
3,f>76,377
217
911,686,U32
399,2U0
251
TREASURY DEPARTMENT
Washington
IMMEDIATE RELEASE
Thursday, December 14, 1950
S~2534
The Bureau of Customs announced today preliminary figures shew
ing the imports for consumption of commodities can which quotas were
prescribed by the Philippine Trade Act of 1946, from January 1, 1950,
to December 2, 1950, inclusive, as follows %
Products of the
Philippines
% Established Quota
:
Quantity
#
•
#
$ Unit of
s Quantity
•
»
O'
s Imports as of
: December 2, 1950
Buttons ,**..******
, . 850,000
Gross
641,964
Qtgars ***«o,
200,000,000
Number
762,083.
Coconut ©ii *******
443,000,000
Cordage ,,,«•••*•«»
6,000,000
Pound
n
Rice •*•■»•**•*,>****
1 ,040,000
tf
Sugars
114,041,575
3,576,377
217
(refined *****
(unrefined .«*
Tobacco •o»*****«*«*
1,904,000,000
Pound
911,686,432
6,500*000
Pound
399,240
IMMEDIATE RELEASE,
December
1950
FOR
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, 19bl, as modified by the President’s proclamation of April 13, 19i*2
for the 12 months commencing May 29, 195©, as follows:
Country
of
Origin
Wheat
Established s Imports
Quota
sMay 29, 195©, to
?Dec. 2, 195©
(Bushels)
(Bushels)
Canada
795,000
China
Hungary
Hong Kong
Japan
United Kingdom
100
Australia
Germany
100
Syria
*100
New Zealand
Chile
Netherlands
100
Argentina
2,000
Italy
100
Cuba
France
1,000
Greece
Mexico
100
Panama
Uruguay
Poland and Danzig
Sweden
Yugoslavia
Norway
Canary Islands
Rumania
1,000
Guatemala
100
Brazil
100
Union of Soviet
100
Socialist Republics
Belgium
100
—
795,000
3 ,815,000
2b,000
13,000
13,000
-
-
3 ,815,000
11,605
8 ,0 0 0
75.000
1,000
•—
5.000
5.000
—
1 .0 0 0
1 ,0 0 0
1 ,0 0 0
—
lb,000
2,000
12.000
1,000
—
2,295
37k
1.000
—
1*000
1.000
1,000
1,000
1,000
1,000
1,000
1,000
—
-
-
-
-
BUO/UOt)
Wheat flour, semolina,
crushed or cracked
wheat, and similar
____wheat products
Established : Imports
Quota
s May 29, 195®,
to Bee. 2, 1950
(PoundsJ
(Pounds)
795,000
b,0ÒÙ,ÒÙO
3 /829,27b;
;
253
TR
EA
SU
R
YD
EPA
R
TM
EN
T
Washington
FOR IMMEDIATE RELEASE
Thursday« December 14* 1950
S-£535
The Bureau of Customs announced today preliminary figures showing the
quantities of wheat and wheat flour entered, or withdrawn from warehouse, for
consumption under the import quotas established in the Presidents proclamation
of May 28, 1941» as modified by the President's proclamation of April 13, 1942,
for the 12 months commencing May 29, 1950, as follows«
#
#
*
Country
of
Origin
....
.....
Wheat flour, semolina,
crushed or cracked
•
w
heat, and similar
.
wheat products
s Established t
Imports
Estab3.ished :
Imports
* Quota
: May 29, 1950, to
Quota
«May 29, 1950,
*
: Dec, 2. 1950
sto Dec«2*1950
Wheat
j
Canada
795,000
China
Hungary
Hong Kong
Japan
United Kingdom
100
Australia
Germany
100
Syria
100
New Zealand
Chile
Netherlands
100
Argentina
2,000
Italy
100
Cuba
France
1,000
Greece
Mexico
100
Panama
Uruguay
Poland and Danzig
Sweden
Yugoslavia
Norway
Canary Islands
Rumania
1,000
Guatemala
100
Brazil
100
Union of Soviet
Socialist Republics 100
Belgium
100
795,000
•nr
mm
4m
• »
mm
• *
mm
mm
4m
-
mm
—
—
• *
mm
mm
mm
—
mm
-
mm
—
mm
-
mm
-
mm
*• #
800*000
■
'
mm
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
1,00)
1,000
1,000
1,000
1,000
3,815,000
11,605
mu*
mm
mm
4m
2,295
374
mm
4m
444
mm
mm
—
795,000
’
mm
4,000,000
mm
3,829,274
COTTON WASTES
(In pounds)
COTTON CARD STRIPS made from cotton having a staple of less than 1-3/16 fnches in length, COMBER
WASTE, LAP WASTE, SLIVER WASTE, AND ROVING WASTE, WHETHER OR NOT MANUFACTURED OR OTHERWISE
ADVANCED IN VALUE: Provided, however, that not more than 33-1/3 percent of the quotas shall
be filled by cotton wastes other than comber wastes'made from cottons of 1-3/16 inches or more
in staple length in the case of the following countries: United Kingdom, France, Netherlands,
Switzerland, Belgium, Germany, and Italy:
Country of Origin
Established : Total imports
: TOTAL QUOTA : Sept. 20, 1950
: t@ Dec. 2, 195©
*
United Kingdom ......
Canada ...........
France ..........
British India ......
Netherlands .......
Switzerland .......
Belgium ................
Japan ............
China...... ....
Egypt.. ...... .
Cuba ...................
Germany ...........
Italy ♦••#•••♦♦♦♦••••••<>
4,323,457
239,690
227,420
69,627
68,240
44,388
38,559
341,535
17,322
8,135
6,544
76,329
21,263
1,417,293
107,191
63,125
39,283
5.482,509
1,652,335
1/ Included in total imports, column 2.
-
-.
—
25,443
—
Imports
l/
: Established :
s 33-1/3$ of ! Sept. 20, 195©
: Total Quota : to Dec. 2, 1950
1,441,152
-
1,417,293
-
75,807
22,747
63,125
12,853
—
-
14,796
-
—
—
25,443
7,088
25,443
-
1 .599.886
1,505,861
-
>. December ^
w
?
Tf
tA
TR
EA
SU
R
YD
EPA
R
TM
EN
T
Washington
IMMEDIATE RELEASE
1950
’ Preliminary data on inports for consumption of cotton and cotton waste chargeable to the quotas
established by the President’s Proclamation of September 5, 1939, as amended
r\
C
O
T
T
O
N(other than linters) (in pounds)
Cotton under 1-1/8 inches other than harsh or rough under 3/4”
Imports Sept. 20, 1950, to December 2, 1950, Incl.
Country of Origin
Egypt and the AngloEgyptian Sudan ....
Peru ...........
British India ..........
China ..........................
Mexico ........................
Brazil................
Union of Soviet
Socialist Republics
Argentina ...................
Haiti ..........................
Ecuador..................
Established Quota
783,816
247.952
2,003,483
1,370,791
8,883,259
618,723
Imports
41,784
Quota Filled
3 2 8 ,1 0 7
475,124
5,203
237
9,333
-
Country of Origin
Established Quota
Honduras .........................
Paraguay.......................
flnlrtm
M
a ........................
Iraq ................................
British East Africa..••
Netherlands E. Indies*.
Barbados .........................
l/Other British W
. Indies
Nigeria..........................
2/0ther British W
. Africa
¿/Other French Africa ...
Algeria and Tunisia .«.
752
871
124
195
2 ,2 4 0
71,388
21,321
5,377
1 6 ,0 0 4
689
-
1/ Other than Barbados, Bermuda, Jamaica, Trinidad, and Tobago.
2/ Other than Gold Coast and Nigeria.
¿/ Other than Algeria, Tunisia, and Madagascar.
Cotton, harsh or rough, of less than 3/4”
Imports Sept. 20, 1950, t© December 2, 1950
Established Quota (Global)
Imports
70 ,000,000
3 ,236,211
Cotton, harsh or rough (except cotton of perished
staple, guttwi grabbots and cotton pickihgs)
of 1-3/16” or more but less than 1-3/3”
Imports Oct. 9, 1950, to December 2, 1950
Established Quota (Global)
Imports
1,500,000
167,553
Cotton 1-1/8Mor more, but less than l-ll/l6lf
Imports Feb. 1, 1950, t© December 2, 1950
Established Quota (Global)
Inports
45,656,420
Quota Filled
Cotton 1-3/8”, but less than 1-11/16”
Inports Oct. 12, 1950, to December 2, 1950
Established Quota (Global)
Inports
7,500,000
5,749,191
Imports
—
- •
-
TREASURY DEPARTMENT
Washington
IMMEDIATE RELEASE
Thursday, December II4, 1950
S-2f>36
Preliminary data on imports for consumption of cotton and cotton waste chargeable to the quotas
established by the President’s Proclamation of September 5, 1939, as amended
COTTON (other than 1 inters) (in pounds)
Cotton under 1-1/8 inches other than harsh or rough under
Imports Sept. 20, 1950, to December 2, 1950, Incl.
Country of Origin
Egypt and the AngloEgyptian Sudan ....
P e r u ..... ..........
British India .......
China ...............
Mexico ..............
Brazil ..............
Union of Soviet
Socialist Republics
Argentina ...........
Haiti ...............
Ecuador .............
Established Quota
783,816
21*7,952
2,003,1*83
1,370,791
8,883,259
618,723
Imports
-
1*1,781*
-
Quota Filled
328,107
-
1*75,121*
5,203
237
9,333
-
Country of Origin
3/hn
Established Quota
Honduras .............
Paraguay .............
Colombia .............
Iraq ..................
British Èast Africa ...
Netherlands E* Indies .
Barbados ..............
l/Other British W. Indies
N i g e r i a ..... .........
2/other British W. Africa
3/0ther French Africa ...
Algeria and Tunisia ...
752
871
I 2 I4
195
2,2[;0
71,388
-
21,321
5,377
1 6 ,0 0 ) 4
689
-
Imports
-
-
1/ Other than Barbados, Bermuda, Jamaica, Trinidad, and Tobago.
Other than Gold Coast and Nigeria.,
3/ Other than Algeria, Tunisia, and Madagascar.
~2/
Cotton, harsh or rough, of less than 3 / h u
Imports Sept. 20, 1950, to December 2, 1950
Established Quota (Global)
Imports
70,000,000
3,236,211
Cotton 1-1/8» or more, but less than l-ll/l6”
Imports Feb. 1, 1950, to December 2, 1950
Established Quota (Global)
Imports
U5,656,i|20
Quota Filled
Cotton, harsh or rough (except cotton of perished
staple, grabbots and cotton pickings)
of 1 - 3 / 1 6 » or more but less than 1-3/8»
Imports Oct. 9, 1950, to December 2, 1950
Established Quota (Global)
Imports
Cotton 1-3/8», but less than 1-11/16"
Imports Oct. 12, 1950, to December 2, 1950
Established Quota (Global)
Imports
7,500,000
5,7U9,191
1
,500,000
167,553
ro
C71
<7)
- 2 -
COTTON WASTES
(In pounds)
COTTON CARD STRIPS made from cotton having a staple of less than 1-3/16 inches in length, COMBER
WASTE, IAP 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:
Country of Origin
;
United Kingdom ........
Canada .................
France .............. ..
British India .........
Netherlands.... .......
Switzerland ...........
B e l g i u m .... .
J a p a n ......... .
C h i n a ............... ,.
Egypt ..................
C u b a ................. .
Germany ...............
I t a l y ...... ...........
Established
TOTAL QUOTA
t*,323,1*57
239,690
227,1*20
69,627
68,2I4.O
1*1*,388
38,559
31*1,535
17,322
8,135
6,51*1*
: Total imports
: Sept. 20, 1950
; to Dec. 2, 1956
1,1*17,293
107,191
63,125
39,283
-
-
:
:
:
Established
Imports
33-1/3* of : Sept. 20, 1950
Total Quota : to Dec. 2, 1950
1,1*1*1,152
-
75,807
1,
1,1*17,293
_
6 3,125
-
22 ,71*7
lit, 796
12,853
u
_
—
-
-
-
-
-
-
-
-
-
-
76,329
21,263
25,1*1*3
-
25,1*1*3
7,088
25,1*1*3
5,1*82,509
1,652,335
1,599,886
1 ,505,861
-
l/ Included in total imports, column 2.
IV)
CJ1
8t!S
25
December 5, 1950
TOM
R
. BUgatTl
the following transactions were made in direct and guaranteed
securities |f the Goverment for ï*sa*uiy investment and other
accounts during the month of Movaaber, 1950s
Purchases « * • • • • • • « • * •
Sales * * * # * # * * # # # • * *
610T $060^000
^6y365 i000
Met inirohases • • '# « * # ♦ « « • H 10.p695#Q00
(Mef,
| ',v:y>~r\
Wisecarver
12/5/50
*V ?
Division
of
Investments
TREASURY DEPARTMENT
Information Service
Wa s h i n g t o n , d . c .
RELEASE MORNING NEWSPAPERS
IfriiTH" 'H'
ln y . TYrrnnhnr 1 f;r-—
ief
D u p i n g the m o n t h of OertokQ^
1 9 5 0 , m a r k e t t r a n s a c t i o n s in d i r e c t
and guaranteed
secu r i t i e s
of the
G o v e r n m e n t for T r e a s u r y i n v e s t m e n t
and o t h e r ac c o u n t s
r e s u l t e d in net
Lÿyî ocd
p u r c h a s e s of & § T Q ^ Q r ? (j|C|'y S e c r e t a r y
S n y d e r a n n o u n c e d today.
0O0
TREASURY DEPARTMENT
Information Service
Wa s h i n g t o n , d . c .
RELEASE MORNING NEWSPAPERS,
Friday3 December 15* 1950»
During the month of November
1950, market
transactions in direct
and guaranteed securities of the
Government for Treasury investment
and other accounts resulted in net
purchases of $ 10*695*000, Secretary
Snyder announced today.
0O0
S-2537
I
1'3S
IM
M
ED
IA
TERELEA
SE,
Thursday, December ll*, 1950«
The Secretary of the Treasury today announced the subscription and
allotment figures with respect to the current offering of 1-3/1* percent
Treasury Notes of Series B-1955, to be dated December 15* 1950, open to
the holders of 1-1/2 percent Treasury Bonds of 1950, maturing December 15,
1950, and Treasury Certificates of Indebtedness of Series A-1951, maturing
January 1, 1951*
Subscriptions and allotments were divided among the several Federal
Reserve Districts and the Treasury as follows*
Federal Reserve
District
Bonds
Exchanged
Certificates
Exchanged
Total
Exchanges
Boston
N
ewYork
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St# Louis
Minneapolis
Kansas City
Dallas
San Francisco
Treasury
1 82,313,000
l,03li,8iii|,000
51*,1*1*7,000
98,11*3,000
52,993,000
70,1*33,000
357,569,000
91,117,000
67,59l»fO
O
O
119,1*13,000
97,210,000
183,1*19,000
5,809,000
1 70,628,000
3,107,262,000
57,982,000
1114,633,000
1*5,753,000
71*,91*2,000
558,110,000
106,572,000
90,107,000
102,357,000
88,111,000
116,91*14,000
3,331.000
f 152,91*1,000
]*,112,106,000
112,1*29,000
212,776,000
98,11*6,000
11*5,37S,000
915,679,000
197,689,000
157,701,000
221,770,000
185,321,000
300,363,000
9*11*0,000
i2,31i*,70lt,000
*li,536,732,000
16,851,1*36,000
TO
TA
L
262
I M M E D I A T E RELEASE,
Thursday, D e c e m b e r lb, 1 9 5 0 .
S -2 5 3 8
The S e c r e t a r y of the T r e a s u r y t o d a y a n n o u n c e d the s u b s c r i p t i o n
and a l l o t m e n t f i g ures w i t h r e s p e c t to the current o f f e r i n g of 1 - 3 /ty
percent T r e a s u r y R o t e s of Series B - 1 9 5 5 , to be d a t e d D e c e m b e r 1 5 ,
1 9 5 0 , ^open to the h o l d e r s of 1-1/2 p e r c e n t T r e a s u r y B o n d s of 19 50
m a t u r i n g D e c e m b e r 15, 1950, and T r e a s u r y C e r t i f i c a t e s of I n d e b t e d n e s s
of Series A - I 9 5 I, m a t u r i n g J a n u a r y 1 , 1 9 5 1 .
S u b s c r i p t i o n s and a x l o t m e n t s wer e d i v i d e d a m o n g the s e veral
F e d e r a l R e s e r v e D i s t r i c t s an d the T r e a s u r y as follows:
Fe d e r a l R e s e r v e
District
Bonds
Exchanged
Certificates
E x c h a n g e d _______
Total
E x c h a n g e s _______
Boston
New Y o r k
Philadelphia
C l e v eland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas C i t y
Dallas
San F r a n c i s c o
Tr e a s u r y
$
$
7 0 ,6 28 ,0 0 0
$ 152,941,000
TOTAL
8 2 , 313,000
1,03^,844,000
54.447.000
98.143.000
5 2 .3 9 3 .0 0 0
70.433.000
357.569.000
91.117.000
67,59^,000
119.413.000
97,210,000
183.419.000
5.809.000
3,107,262,000
57.982.000
3.331.000
4,142,106,000
112.429.000
2 1 2 .7 7 6 .0 0 0
98,146,000
145.375.000
915.679.000
197.689.000
157.701.000
2 2 1 .7 7 0 .0 0 0
185.321.000
3 0 0 .36 3 .0 0 0
9.140.000
$2,314,704,000
$4,536,732,000
$ 6 ,8 5 1 ,4 36 ,0 0 0
1 1 4 .6 3 3 .0 0 0
^5,753,000
74.942.000
558, n o , 000
1 0 6 .5 7 2 .0 0 0
90.107.000
102.357.000
8 8 .1 1 1 .0 0 0
116 .944.000
0O0
TR E A SU R Y D EPARTM EN T
FISCAL
SERVICE
WASHINGTON 25
QfcAi 1 % 19SÖ
y
m j j ü M
, K. T
f
TO TREASURY PRESS SERVICE
T
o
In accordance with our customary practice it is suggested
that the following information/i>e relea~-J
^
On December 1k,/i
Treasury
of $266,619*74 ftftnrn rh.A—GmrPT'nm<an+. r,-p y-i
t, roprc
senta-ng ~-a~p&yment£pf principal in the amount of
$107*000.00, and the semi-annual payment of interest
in the amount of $124,792*50 under the Funding Agree
ment of May 1, 1923 1 il3*695*06 on account of the
semi-annual payment on the annuity due under the post
ponement agreement of May 1, 19Ì+1, and $21,132.18 on
account of the semi-annual payment on the annuity due
under the postponement agreement of October £4 , 19ii3.
These payments.represent the entire amount due from
the Governmerltyof Finland on December 15, 1950, under
these agreemegros -
f
with the Act of Congress approved
» "mgust
W ixu2accordance
I4, 1949, the amount received will be made
availab!
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 institu
tions of higher education in Finland, and for the
purpose of providing opportunities for American citizens
to .carry out academic and scientific enterprises in
Finland.
wu
w
✓
Fiscal Assistant Secretary
im* A.
S e c r e t a r y Snyder
Department
h ad
of F i n l a n d
on account
U n i t e d States.
Jutila
received
a n n o u n c e d today that the T r e a s u r y
a payment
tff $ 2 6 6 , 6 1 9 . 7 4 f r o m the G o v e rnment
of that g o v e r n m e n t ’s i n d e b t e d n e s s to the
delivered
T he pa y m e n t w a s im$M to the T r e s u r y by Dr. K.T.
Minister
of ^ i n l a n d
o n b e h a l f of his gov e rnment.
The p a y m e n t c o n s i s t s uf
265
I M M E D I A T E RELEASE,
Thursday, D e c e m b e r 14,
S -2 5 3 9
1950,
S e c r e t a r y S n y d e r a n n o u n c e d t o d a y that the T r e a s u r y
D e p a r t m e n t h a d r e c e i v e d a p a y m e n t of $ 2 6 6 ,6 1 9 .74 from the
G o v e r n m e n t of F i n l a n d o n a c c o u n t of that ¿ o v e r n m e n t ' s i n d e b t e d
ness to the U n i t e d States.
The p a y m e n t was d e l i v e r e d to the
T r e a s u r y b y Dr. K. T. Jutila, M i n i s t e r of F i n l a n d o n b e h a l f of
h is g o v e r n m e n t .
■
1
L
* 1rV7
payment
consists
of p r i n c i p a l
in the a m o u n t of
a m o m t 0o f 0?T 9 t n v o o h | o Semi ' an? ^ al p a yreent of i n t e r e s t in the
* S 2 , 5 ? U2 dt ? the i ^ i n g A g r e e m e n t of M a y 1 , 1 9 2 3 :
?
95. ^ .P*1 accoun-fc of the s e m i - a n n u a l p a y m e n t of the a n n u i t y
toi
p o s t P ° n e m e n t a g r e e m e n t of M a y 1, 1941, and
d u e ’u n d ér tu»
° f Ìhe seffll-a n n u a l p a y m e n t on the a n n u i t y
due u n d e r the p o s t p o n e m e n t a g r e e m e n t of O c t o b e r 14
194^
Thpqp
payments, S e c r e t a r y S n y d e r said, r e p r e s e n t the e n t i r e a m o u n t due
agreements?V e r m e n t
° f Flnlan<i o n D e c e m b e r 15,
1950,
u n d e r these
TQliQ I? h o Cf ™ r d a ? 0e W l ^h ihe A ct of c ° n g ress a p p r o v e d A u g u s t 24,
9 9i the a m o u n t r e c e i v e d will be m a d e a v a i l a b l e to the
s t a t e for the p u r p o s e of p r o v i d i n g educational
c i t i z e n ^ n o f av - i T1Sti U C t ^ 0? an d t r a l n l n e in tt» U n i t e d States for
f o r ' i n s t i t u J n n ^ n f a ild,A m e r a o a n D ° °ks a nd t e c h n i c a l e q u i p m e n t
utl'
o n ? ° f h i £h e r e d u c a t i o n in Finland, a nd for the
p u r p o s e of p r o v i d i n g o p p o r t u n i t i e s for A m e r i c a n ci t i z e n s to
a r r y out a c a d e m i c and s c i e ntific e n t e r p r i s e s in Finland,
A f t e r g i v i n g effe c t to this p a y m e n t the i n d e b t e d n e s s of
the G o v e r n m e n t of F i n l a n d to the U n i t e d S tates g r o w i n g out of
W o r l d W a r I a m o u n t s to $ 7 ,6 1 5 ,7 0 1 .0 8 .
0O0
controls are not applicable to Formosa (Taiwan) or to South Korea or
their nationals»
Under the regulations, a census is to be taken with respect to
Chinese and Korean property in the United States as of the opening of
business on December 18, 195>0®
Reports are required to be filed on or
before January 26, 1951* on report Forms TFR-603 and 60U> which will
shortly be made available*
Unlike the prohibitory regulations, which
are limited to the communist areas of China and Korea and their na
tionals, the census will-apply to all Chinese and Korean assets.
The measures taken by the Treasury Department do not affect the
controls which are presently being exercised by the Office of Alien
Property in the Department of Justice with regard to World War II
enemy property and with regard to property subjected to blocking dur
ing that war which has not a^yet been unfrozen.
/
For*
'6-lfr°
The Secretary of the Treasury today established controls over the
United States assets of residents of communist China and North Korea.
The blocking regulations forbid all transactions involving bank accounts
and other United States assets of communist China and the North Korean
regime and their nationals unless Treasury approval is obtained.
The
purpose of these controls is to prevent financial transactions with
these areas which would be inimical to the interests of the United States.
In order to avoid unnecessary restrictions on unobjectionable trans
actions, a series of blanket authorizations to engage in transactions
which would otherwise be prohibited has been included in the regulations.
Thus, individual Chinese and North Koreans in the United States and in
non-communist areas abroad will be able to use their assets here unless
they are acting on behalf of the countries subject to restrictions.
Simi
lar treatment is accorded to Chinese and North Korean business enterprises
in the United States for the normal conduct of their business in the United
States.
Among other blanket approvals are those authorizing payments into
blocked accounts, and authorizing payments out of such accounts for State,
Federal and municipal taxes.
Transactions not covered by such blanket
approvals are subject to specific Treasury permission.
The regulations
provide that applications for such special licenses must be filed with
the Federal Reserve Bank of New York.
Todayrs measures do not have a retroactive effect and do not invali
date transactions which have already been completed.
The new blocking
TREASURY DEPARTMENT
Information Service
Washington , d .c .
2G8
FOR RELEASE 10-00 P, M.
S a turday,
December
l6,
S - 2 5 40
1950.
The S e c r e t a r y of the T r e a s u r y t o d a y a n n o u n c e d controls over
the U n i t e d States assets of ises i d e n t s of c o m m u n i s t C h i n a and
N o r t h Korea.
The b l o c k i n g r e g u l a t i o n s forb i d a ll t r a n s a c t i o n s
i n v o l v i n g b a n k acc o u n t s a nd other U n i t e d States assets of
co m m u n i s t C h i n a a nd the N o r t h K o r e a n r e gime a nd their n a t i o n a l s
u n less T r e a s u r y a p p r o v a l is obtained.
The p u r p o s e of these
controls is to p r e v e n t f i n a n c i a l t r a n s a c t i o n s w i t h these areas
w h i c h w o u l d be in i m i c a l to the i n t e r e s t s of the U n i t e d S t a t e s .
I n o r d e r to a v o i d u n n e c e s s a r y r e s t r i c t i o n s on u n o b j e c t i o n a b l e
transactions, a series of b l a n k e t a u t h o r i z a t i o n s to engage in
t r a n s a c t i o n s w h i c h w o u l d oth e r w i s e be p r o h i b i t e d has b e e n i n c l u d e d
in the r e g u l a t i o n s .
Thus, i n d i v i d u a l C h i n e s e a nd N o r t h K o r e a n s
in the U n i t e d States a nd in n o n - c o m m u n i s t areas a b r o a d w i l l be
able to use their a s sets here unless t hey are a c t i n g on b e h a l f
of the. countries subject to r e s t r i c t i o n s .
S i m i l a r t r e a t m e n t is
a c c o r d e d to Chinese and N o r t h ' K o r e a n b u s i n e s s e n t e r p r i s e s in the
U n i t e d (States for the n o r m a l conduct of t h e i r b u s i n e s s in the
U n i t e d S t a t e s . A m o n g other b l a n k e t a p p r o v a l s are those a u t h o r i z
ing p a y m e n t s into b l o c k e d accounts., an d a u t h o r i z i n g p a y m e n t s out
of such a c c o u n t s for State, F e d e r a l an d m u n i c i p a l taxes.
T r a n s a c t i o n s not covered by such b l a n k e t a p p r o v a l s are subject
to specific T r e a s u r y perm i s s i o n .
The r e g u l a t i o n s p r o v i d e that
a p p l i c a t i o n s for such special licenses m u s t be f i l e d w i t h the
F e d e r a l R e s e r v e B a n k of N e w York.
T o d a y 's m e a s u r e s do not h a v e a r e t r o a c t i v e e f f e c t a nd do not
i n v a l i d a t e t r a n s a c t i o n s w h i c h h a v e a l r e a d y b e e n completed.
The
n e w . b l o c k i n g controls are not a p p l i c a b l e to F o r m o s a (Taiwan) or
to S o u t h K o r e a or their n a t i o n a l s ,
U n d e r the regulations, a census is to be t a k e n w i t h re s p e c t
to C h i n e s e a nd K o r e a n p r o p e r t y in the U n i t e d States as of the
o p e n i n g of b u s i n e s s on D e c e m b e r 18, 1950.
R e p o r t s are r e q u i r e d
to be f i led on or befo r e J a n u a r y 26, 1951* on r e p o r t F o r m s
T F R -6 0 3 a nd 6o4, w h i c h wil l s h o r t l y be m a d e a v a i l a b l e .
Unlike
the p r o h i b i t o r y r egulations, w h i c h are l i m ited to the com m u n i s t
areas of C h i n a and K o r e a and their nationals, the census wil l
a p p l y to all C h i n e s e and K o r e a n a s s e t s .
The m e a s u r e s t a k e n b y the T r e a s u r y D e p a r t m e n t do not a f f e c t
the c o n trols w h i c h are p r e s e n t l y b e i n g e x e r c i s e d by the O f f i c e of
A l i e n P r o p e r t y in the D e p a r t m e n t of J u s t i c e with, r e g a r d to W o r l d
W a r II e n e m y p r o p e r t y and w i t h r e g a r d to p r o p e r t y s u b j e c t e d to
b l o c k i n g d u r i n g that w a r w h i c h has no t as yet b e e n unfrozen.
0O0
STANDARD FO RM NO. 64
Office Memorandum
to
: M
R
. SILER
FROM
•
u n i t e d
states
date:
g o v e r n m e n t
December 12, 1950
M
R
.M
A
R
K
H
A
M
SUBJECT:
W
e would appreciate your revision of the news release
announcing the appointment of Lewis 0. Tierney as W
est Virginia
Savings Bonds Chairman.
Our W
est Virginia office would like to have the announcement
carry Mr. Tierney’s hom
e town, Bluefield, W
. Va., instead of
Charleston, which is M
r* Tierney’s business base.
M
r. Tierney alscr would like to emphasize that primarily
he is a coal operator. Attached is the release with revisions.
STA N D A RD FO RM NO. 6 4
C6 IS/VefYlOYdflduTYl
M
R
.M
A
R
K
H
A
M
to
FROM
• UNITED STATES GOVERNMENT
:
date:
December 12, 1950
MR. MOGEIiEVER
SUBJECT:
Apparently w
e took Bernie Payne*e letter to us
containing M
r* Tierney^ biographical material too literally*
Bernie called m
e this morning and would appreciate
two or three changes in the release
,5"ary SnytLer today announced the appointment of Lewis C. Tierney,
of Charleston, West Virginia, prominent in
the radio pnd coal
industries in that j£tate, as Chairman of the Treasury Advisory Committee
on Savings Bonds for the State of West Virginia.
Secretary Snyder said ”the experience and leadership of Mr. Tierney
will be of great value to the Savings Bonds Program.”
Advisoiy^c6mmittees are established in each jitate and the District
of Columbia to consult with the Treasury on its program to promote the
sale of Savings Bonds through payroll savings, banks, schools and business
and civic groups.
Mr. Tierney is presently the President of the Tierney Company, engaged
primarily in radio broadcasting and the owner of Radio Station WCHS,
Charleston, West Virginia; President of Premier Pocahontas Company, operating
three mines in the Pocahontas District; President of Eastern Coal Sales
Company engaged in the wholesale distribution of coal throughout the
eastern part of the United States; -President of Mohawk Land Company, Vice
President, Eastern Coal Corporation, whose principal production facilities
are in Pike County, Kentucky. He has been active in community work in
Bluefield, West Virginia, his present home, having been President of the
Chamber of Commerce, a former director of the Bluefield Community Chest
and other charitable organizations.
He has long been actively identified with the Savings Bonds Program,
having served as chairman in his home county of Mercer for several War
Loan drives during World War II, and as a member of the £tate industrial
advisory committee in peacetime.
Mr. Tierne^>--fy)n of Mrs. ¿aurence^E. Tierney and the late Cnlnnel
..
Laurence E^jDJiTern^/, was bo^n^^^ov)'|iat an, We at
_
Qn’
^ ^*******^
receivedhis secondary e^ef^ation at Aheshir/^cSademy, Chp*M^?«?tuonnecticut,
and M^collegeyeduc^ifon at Yale miveprfiy, SheffieWf^etfentific School,
obtaining Degree o^Bachelor of Sdi^iitfe.
TREASURY DEPARTMENT
WASHINGTON, D .C .
Information Service
R E L E A S E A F T E R N O O N NEWS P A P E R S ,
W e d n e s d a y , D e c e m b e r 20, 1 9 5 0 -
S-25^1
Bluefield
S e c r e t a r y S n y d e r t o d a y a n n o u n c e d the a p p o i n t m e n t of
L e vis C. Tierney, of
West Virginia, prominent
in the r a d i o and coal .industries in that State, as C h a i r m a n
of the T r e a s u r y
A d v i s o r y C o m m i t t e e on S a v ings B o n d s for
the State of W e s t V i r g i n i a .
S e c r e t a r y S n y d e r said ’’the e x p e r i e n c e an d l e a d e r s h i p
of Mr. T i e r n e y w i l l he of great v a lue to the S a v ings B o n d s
Program.”
A d v i s o r y c o m m i t t e e s are e s t a b l i s h e d in e a c h State
an d the D i s t r i c t of C o l u m b i a to consult w i t h the T r e a s u r y
o n its p r o g r a m to p r o m o t e the sale of S a v i n g s B o n d s t h r o u g h
p a y r o l l savings, banks, schools a nd b u s i n e s s and civic
groups.
M r . T i e r n e y is p r e s e n t l y the P r e s i d e n t of the T i e r n e y
in rad: .o b r o a d c a s t i n g and the
Company, e n g a g e d
o w n e r of R a d i o S t a t i o n WCHS, Charleston, W e s t Vir g i n i a ;
P r e s i d e n t of P r e m i e r P o c a h o n t a s C o m p a n y , o p e r a t i n g three
m i n e s in the P o c a h o n t a s Dis t r i c t ; P r e s i d e n t of E a s t e r n Coal
Sales C o m p a n y e n g a g e d in the w h o l e s a l e d i s t r i b u t i o n of coal
t h r o u g h o u t the e a s t e r n part of the U n i t e d States; P r e s i d e n t
of M o h a w k L a n d Company, V i c e President, E a s t e r n Coa l
C o r p o r a t i o n , w h o s e p r i n c i p a l p r o d u c t i o n f a c i l i t i e s are in
Pike County, K e n t u c k y .
H e h as b e e n a c t i v e in c o m m u n i t y w o r k
i n B l u e fie Id,
having been
P r e s i d e n t of the C h a m b e r of Commerce, a f o r m e r d i r e c t o r of
the B l u e f i e l d C o m m u n i t y Chest a n d o t h e r c h a r i t a b l e organizations.
He h a s l o n g b e e n a c t i v e l y i d e n t i f i e d w i t h the Savings
B o n d s Program, h a v i n g s e r v e d as c h a i r m a n in his h o m e c o u n t y
of M e r c e r for se v e r a l W a r L o a n d r i v e s d u r i n g W o r l d W a r II,
a nd as a m e m b e r of the S t ate i n d u s t r i a l a d v i s o r y co m m i t t e e
in p e a c e t i m e .
oOo
TREASURY DEPARTMENT
Information Service
WASHINGTON, D.
273
R E L E A S E A F T E R N O O N NEWSPAPERS,
W e d n e s d a y , D e c e m b e r 20, 1950*
S-2541
S e c r e t a r y S n y d e r t o d a y a n n o u n c e d the a p p o i n t m e n t of
Levis C. Tierney, of Blu e f i e l d , W e s t Vi r g i n i a , p r o m i n e n t
i n the r a d i o a nd coal i n d u s t r i e s in that State, as
C h a i r m a n of the T r e a s u r y A d v i s o r y C o m m i t t e e o n Sa v i n g s B o n d s
for the State of W e s t V i r g i n i a .
S e c r e t a r y S n y d e r said "the e x p e r i e n c e a n d l e a d e r s h i p
of Mr. T i e r n e y w i l l be of great v a l u e to the S a v i n g s B o n d s
Program."
A d v i s o r y c o m m i t t e e s are e s t a b l i s h e d in e a c h State
a n d the D i s t r i c t of C o l u m b i a to consult w i t h the T r e a s u r y
o n its p r o g r a m to p r o m o t e the sale of S a v ings B o n d s t h r o u g h
p a y r o l l savings, banks, schools and b u s i n e s s a n d civic
groups.
Mr. T i e r n e y is p r e s e n t l y the P r e s i d e n t of the T i e r n e y
Company, e n g a g e d in r a dio b r o a d c a s t i n g a nd the o w n e r of
R a d i o S t a t i o n WCHS, Charleston, W e s t Virginia,; P r e s i d e n t
of P r e m i e r P o c a h o n t a s Company, o p e r a t i n g three m i n e s in the
P o c a h o n t a s D i s t r i c t ; P r e s i d e n t of E a s t e r n Coa l Sales C o m p a n y
e n g a g e d in the w h o l e s a l e d i s t r i b u t i o n of coal t h r o u g h o u t the
e a s t e r n p a r t of the U n i t e d States; P r e s i d e n t of M o h a w k L and
Company, V i c e President, E a s t e r n Coa l C o r p o r a t i o n , w h o s e
p r i n c i p a l p r o d u c t i o n fac i l i t i e s are in Pik e County, K e n t u c k y .
H e h as b e e n a c t i v e in c o m m u n i t y w o r k in B l u e f i e l d , h a v i n g
b e e n P r e s i d e n t of the C h a m b e r of Commerce, a f o r m e r d i r e c t o r
of the B l u e f i e l d C o m m u n i t y C h e s t a n d o t h e r c h a r i t a b l e
organizations.
H e h as lon g b e e n a c t i v e l y i d e n t i f i e d w i t h the Sa v i n g s
B o n d s Program, h a v i n g served as c h a i r m a n in hi s h o m e c o u n t y
of M e r c e r for s e v e r a l W a r L o a n d r ives d u r i n g W o r l d W a r XI
a n d as a m e m b e r of the State i n d u s t r i a l a d v i s o r y c o m m i t t e e
in peacetime.
oOo
I l l
RELEASE H
R
HEIfSPAPEBS,
S) f Z /
/
1/
Tuesday* December 19# 1950»
^
"2-—
J
The Secretary of the Treasury announced last evening that the tenders for
Hi 000,000,000, or thereabouts, of 91~day Treasury bills to be dated December 21, 1950,
and to mature M
arch 12, 1951, which were offered on December 14, were opened at the
Federal Reserve Banka m December 18*
The details of this Issue are as follows$
Total applied for - 11,677*088*000
Total accepted
* 1,000,709,000 (includes #123,826,000 entered cma
non-competitive basis and accepted in
full at the average price shown below)
Average price
~ 99*65it/ Equivalent rate of discount approx* 1*368$ per annan
Range of accepted competitive bids*
High
- 99*680 Equivalent rate of discount approx* 1*266$ per annum
- 99.652
«
* *
«
•
1*3771 *
•
lew
(66 percent of the amount bid for at the low price was accepted)
Federal Reserve
District
Total
Applied for
Total
Boston
New fork
| 17,890,000
1,171,722,000
31,167,000
36,065,000
27,357,000
18,033,000
11(8,163,000
17.1(37,000
5,U9U,000
38,036,000
21,532,000
liiU.192,000
|
$1,677,088,000
♦1,000,709,000
fh4.lfeel.jh4a
Cleveland
Richmond
Atlanta
Chicago
St* Louis
Minneapolis
KAnsas City
Dallas
Ban Francisco
TOTAL
17,550,000
S6i(,?37,000
16,067,000
ik , 715.000
27,357,000
16,673,000
10i(,623,000
16,533,000
5,U9U,ooo
38,036,000
21,532,000
137,322*000
TREASURY DEPARTMENT
Information Service
WASHINGTON. D .C .
275
R E L E A S E M O R N I N G NEWSPAPERS,
Tuesday, D e c e m b e r 19, 1950.
S - 25^2
The S e c r e t a r y of the T r e a s u r y a n n o u n c e d last e v e n i n g that the
tenders for . $1,000,000, 000 , or thereabouts, of 9 1 - d a y T r e a s u r y bills
to be d a t e d D e c e m b e r 21, 19 5 0 , a nd to m a t u r e M a r c h 2 2 , 1 9 5 1 , w h i c h
were o f f e r e d on D e c e m b e r 14, were o p ened at the F e d e r a l R e s e r v e B a n k s
on D e c e m b e r 18.
The d e t a i l s of this issue are as
follows:
T o t a l a p p l i e d for - $ 1 ,6 7 7 ,088,000
Total accepted
1,000,709,000
A v e r a g e p r ice
Range
(includes $ 1 2 3 , 8 2 6 , 0 0 0 e n t e r e d
on a n o n - c o m p e t i t i v e basis
a nd a c c e p t e d in full at the
a v e r a g e p r ice s h o w n below)
- 9 9 . 6 5 4 / E q u i v a l e n t rate of d i s c o u n t approx.
1 .368 $. p e r a n n u m
of a c c e p t e d c o m p etitive bids.
H i g 11
- 9 9 . 6 8 0 E q u i v a l e n t rate of d i s c o u n t approx.
1 .266 $ p e r a n n u m
- 9 9 . 6 5 2 E q u i v a l e n t rate of d i s c o u n t approx.
1.377$ p e r a n n u m
Lov
(66 p e r c e n t of the amou n t bid for at the low p r ice was a c c e pted)
Fe d e r a l R e s e r v e
District
Total
A p p lied for______
Boston
New Y o r k
Philadelphia
Cle v e l a n d
Richmond
Atlanta
Chicago
S t . Louis
Minneapolis
Kansas C i t y
Dallas
San F r a n c i s c o
$
TOTAL
17,890,000
1,171,722,000
31.167.000
36.065.000
27.357.000
18.033.000
148.163.000
17.437.000
5,494,000
3 8 .0 36 .0 0 0
2 1 .5 3 2 .0 0 0
1 4 4 . 1 9 2 . 000
$ 1 ,6 7 7 , 088 ,000
0O0
Total
______A c c e p t e d
$
17,550,000
564.737.000
1 6 .0 6 7.0 0 0
'34,715,000
27.357.000
16 .
673.000
104.623.000
16.533.000
5,494,000
3 8 .0 36 .0 0 0
2 1 .5 3 2 .0 0 0
1 3 7 .3 9 2 .000
$1,000,709,000
-3m s m
any State, or any of the possessions of the United States, or by any local tax
ing 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 bZ and
as amended by Section
117
(a)
(1)
of the Internal Revenue Code,
11$ of the Revenue Act of 19U1, the amount of discount at
which bills issued hereunder are sold shall not be considered to accrue until
such bills shall be sold, redeemed or otherwise disposed of, and such bills are
excluded from consideration as capital assets.
Accordingly, the owner of
Treasury bills (other than life insurance companies) issued hereunder need in
clude in his income tax, return only the difference between the price paid for
such bills, whether on original issue or on subsequent purchase, and the amount
actually 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. ii.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
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
December 28. 19$0 * in cash or other immediately avail-
--------m
able funds or in a like face amount of Treasury bills maturing
Cash and exchange tenders will receive equal treatment.
0
;
December^, M
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.
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
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Tuesday, December 19» 1950__
--------- "
W
~
•
The Secretary of the Treasury, by this public notice, invites tenders for
& i , n n n ^ . m n , or thereabouts, of
,^
in exchange for Treasury bills maturing
L_-day Treasury bills, for cash and
December 28, 1950
to be issued on
$ 5 bx
a discount basis under competitive and non-competitive bidding as hereinafter
provided.
The bills of this series will
will mature
March 29. 1951 -
be dated December 28 . 1950---> and
, when the face amount will be payable without
interest. They will be issued in bearer form only, and in denominations of
$1,000, $5,000, $10,000, $100,000, $500,000, and $1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the
closing hour, two o'clock p.m., Eastern Standard time,
Friday. p^QCTiber
2g,.195Q-
Tenders will not be received at the Treasury Department, Washington. Each tender
must be for an even multiple of $1,000, and in the case of competitive tenders
the price offered must be expressed on the basis of 100, with not more than three
decimals, e. g., 99.925. Fractions may not be used.
It is urged that tenders
be made on the printed forms and forwarded in the special envelopes which will
be supplied by Federal Reserve Banks or Branches on application therefor.
Others than banking institutions will 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 from others must be accompanied
by payment of 2 percent of the face amount of Treasury bills applied for,
TREASURY DEPARTMENT
Information Service
WASHINGTON, D .C .
279
RELEASE MORNING N E W SPAPERS/
T u e s d a y , D e c e m b e r 19. l o go.'
S- 25^3
The S e c r e t a r y of the Treasury, b y this p u b l i c notice, invites
tenders for $ 1 , 0 0 0 , 0 0 0 , 0 0 0 , or thereabouts, of 9 1 - d a y T r e a s u r y b i lls
^
ca/
and^ in e x c h a n g e for T r e a s u r y bills m a t u r i n g December* 2 8 ,
1950, to^be i s s u e d o n a d i s c o u n t basis u n d e r c o m p e t i t i v e and non-"
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 ided.
The b i lls of this series
d a t e d D e c e m b e r 28, 1950, a nd w i l l m a t u r e M a r c h 2 9 , 1 9 5 1 , w h e n
the face a m o u n t w i l l be p a y a b l e w i t h o u t interest.
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 n s of $ 1 ,0 0 0 , $ 5 ,0 0 0
$ 10 000
$ 1 0 0 ,000 , $500,000, a nd $ 1 , 000,000 ( m a t u r i t y v a l u e ).
' *
’
’
* . y ? ? d e r ? w l 1 1 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
th ® c l o s i n g hour, two o ' c l o c k p.m., E a s t e r n S t a n d a r d time,
_
-ay> D e c e m b e r 2 2 , 1950.
T e n ders w i l l n ot 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 for a n e v e n
m u l t i p l e of $ 1 , 000 , an d in the case of c o m p e t i t i v e tenders the p r ice
o f f e r e d m u s t be e x p r e s s e d on the basis of 1 0 0 , w i t h no t m o r e t h a n
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 mad e on the p r i n t e d forms a nd forwarded in the
special e n v e l o p e s w h i c h w i l l be s u p plied b y F e d e r a l R e s e r v e B a n k s or
B r a n c h e s o n a p p l i c a t i o n therefor.
O t hers 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 not be p e r m i t t e d to submit
•
e x c e F^ ?or "their o w n a c c o u n t . 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 from i n c o r p o r a t e d banks a n d trust com p a n i e s and from
r e s p o n s i b l e and r e c o g n i z e d d e alers in i n v e s t m e n t securities.
Te n d e r s
trom others m u s t be a c c o m p a n i e d by p a y m e n t of 2 p e r c e n t of the face
amount of T r e a s u r y bills a p p l i e d for, unle s s the tenders are
a c c o m p a n i e d by a n ex p r e s s g u a r a n t y of p a y m e n t by a n i n c o r p o r a t e d b a n k
or trust company.
b ^
1™ ® h i a t e l y a f t e r the closing, hour, tenders w i l l be o p e n e d at the
F e d e r a l R e s e r v e B a n k s a n d Branches, f o l l o w i n g w h i c h p u b l i c a n n o u n c e
ment w i l l be m a d e by the S e c r e t a r y of the T r e a s u r y of the amou n t
a n d ^ p r i c e ^ r a n g e of a c c e p t e d bids.
Those s u b m i t t i n g tenders w i l l be
a d v i s e e of the a c c e p t a n c e or r e j e c t i o n thereof.
The S e c r e t a r y of
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 r e j e c t a n y or
^
tenders, i n w h o l e or in part, and h is a c t i o n i n a n y such re s p e c t
-nail oe tinal.
Subject to these reserv a t i o n s , n o n - c o m p e t i t i v e
for $ 20 0 ,0 0 0 or less w i t h o u t stated p r ice fro m a n y one b i d d e r
ill be a c c e p t e d i n full at the a v e r a g e p r ice (in three dec i m a l s ) of
2
a c c e p t e d c o m p e t i t i v e bids.
S e t t l e m e n t for a c c e p t e d tenders in
a c c o r d a n c e w i t h the bids 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 D e c e m b e r 28, 1950, in cash or o t h e r i m m e d i a t e l y a v a i l
able funds or in a like face a m o u n t of T r e a s u r y bills m a t u r i n g
D e c e m b e r 28, 1950.
Cash a nd e x c h a n g e t e n ders w i l l r e c e i v e e q u a l treat
m e n t . C a s h a d j u s t m e n t s w i l l be m a d e for d i f f e r e n c e s b e t w e e n the par
v a lue of m a t u r i n g bills a c c e p t e d i n e x c h a n g e a nd the issue p r i c e of
the n e w bills.
The i n come d e r i v e d fro m T r e a s u r y bills, w h e t h e r i n t e r e s t or gain
from the sale or. o t h e r d i s p o s i t i o n of the bills, s h a l l n o t h a v e an y
exemption, as such, a nd loss from the sale o r 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 bills shall not h a v e a n y s p e cial treatment, 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 s u p p l e m e n t a r y thereto
The bills shall be subject to estate, inheritance, gift 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, but shall be e x e m p t fro m all
t a x a t i o n n o w or h e r e a f t e r i m p o s e d on the p r i n c i p a l or i n t e r e s t thereof
by a n y State, or a n y of the p o s s e s s i o n s of the U n i t e d States, or by
a n y local t a x i n g auth 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 are o r i g i n a l l y sold by the U n i t e d
States shall be c o n s i d e r e d to be interest.
U n d e r S e c t i o n s 42 and
117 (a) (1) of the I n t e r n a l R e v e n u e Code, as a m e n d e d by S e c t i o n 115
of the R e v e n u e A c t of 1941, the a m o u n t of d i s c o u n t at w h i c h bills
i s sued h e r e u n d e r are sold shall not be c o n s i d e r e d to a c c r u e u n t i l
such b i lls shall be sold,, r e d e e m e d or o t h e r w i s e d i s p o s e d of, and
such bills are e x c l u d e d fro 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 bills (other tha n life i n s u rance
companies) issu e d h e r e u n d e r n e e d include i n h is income tax r e t u r n
onl y the d i f f e r e n c e b e t w e e n the price p a i d for s uch bills, w h e t h e r
on o r i g i n a l issue or o n s u b s e q u e n t purchase, a nd the a m o u n t a c t u a l l y
r e c e i v e d e i t h e r u p o n sale or r e d e m p t i o n at m a t u r i t y d u r i n g the taxable
y e a r for w h i c h the r e t u r n is made, as o r d i n a r y g a i n or loss.
T r e a s u r y D e p a r t m e n t C i r c u l a r No* 4l8, as amended, a nd this notice
p r e s c r i b e the terms of the T r e a s u r y bills and g o v e r n the c onditions
of t h eir issue.
Copi e s of the c i r c u l a r m a y be o b t a i n e d f rom a n y
F e d e r a l R e s e r v e B a n k or Branch.
oOo
whom freedom is still a hope, depends
in large part on the policies which
we pursue and the individual
actions
which we take here at home.
If we
remain strong in faith, clear of
purpose, and steadfast
in our
determination to protect our American
beliefs and our American principles,
there can be no doubt of the ultimate
triumph of the cause of freedom
throughout the world.
Intel! tgence of management,! of our
technical know Iedge,■ginto¡destructive
Instruments ¡rather than j|producti ve K
.
iliach inery 1 s not on Iy a Icost Iy Ik B R
process. It Is anlunhappySprocess,
It is', I neverthe 1ess, |a job wef must
do -- and do well - - If we are to
maintain our ¡way of fife .ft t ■■"' f ; : ,
■ ■ -ifoclay¡the survival of 1 freedom
'■
In our'Jown country, in the|f r e e & f l H e
natIonsfwhichs look to us for Ieadershi
and in the hearts of all thoselfor
measures which the Government may
take toehold down inflationary
hu t i5 r
pressures can be fully effective
w i thout the who Iehearted support and
cooperation of every group andfevery
active citizen
in our Nation.
The defense mobilization joblthat
lies ahead isfjone that we face with
a full sense of its urgency and its
meaning.
To haveVto convert the
fruits of labor, the products of our
raw materials,
the benefits of our
p r o d u c ti o n . * 11 has now become
necessary under the present emergency
mobilization for the Government to
invoke more direct controls.
As
individualsy'rwe can contribute to
th'-is-:effort through self-restraint
and by i n c r e a s i n g ¡our sav mgs'*
In a fulls war emergency.fipersonal
restraint and seIf-sacrifice are |jfe’
demanded of all of us, and this is
no less true' 1rv the"'emergency thatf§
confronts us today.
Certain Ijflno
jjg
2TI»
action,has been one of ¡theipimportant
objectives of Treasury debt management.
Ini addition tol. these important II;
fiscal objectives, there are other
safeguards necessary at this*time.
To|maintain¡the soundness! of, tto* f
N a t i o n ’s credit structure,
i
it has
been necessary to restrictithe -,
expansion of credit for certain J H B f
i
civilian uses, while steps have been
taken to assure adequate f i n a n c i n g ®
where needed to facilitate military
j
26
the Federal debt outgOf commercial
banks and into the hands^of private
nonbank
investors.
During 1950,
ho ldings. of, Government secur it i e s r
by private nonbank investors will
be increased by $5 billion,
raising
them to an all-time peak, while
Government security 8hoI dings of the
commercial banking system will be
reduced $5 billion to a new postwar
low.
Over a three year period, the
reduction will total nearly $11
billion.
This inflation control
m
©S' s ent
lai.
"S j
jr ^
th ai pub 1 ic debt of
th e pr esenti size,
h i1
• If ■ A
vM
**
the
uOV eminent
has
igation of%the h igh est order to
pr otec t thè investment ■ tsf'- the m i 11ions
of our |ci tizens in Fed i i 'f d 1 secur i t ies.
Tri is Ifeans a debt mans :
f_
ent program
wh ich is pfanned and c arr led' but in
such a way as to contribute in
ax imum
to the stability and
h e ;Nat?on|s economy.
i
accomplish this.&we
e poIicy|of shifting
*»
£ ¿1
am
defense expenditures will be at a
much higher
level.
If we are to
carry out a policy of financing the
greatest possible amount of these
costs by taxation, much
larger
increases in taxes will be required
than those which have already been
provided,
or are being considered,
by the Congress.
While adequate tax revenues are
the first essential
of a sound Federa
fiscal program, they are not the only
appropr Iat ioris soonlaf ter the« Korean
situation developed,
and the Congress
prov ided the funds.
The f irstiof |j|
this m ont h he asked for $ 18 billion
more*
On 1y la s m a 1i part| of these
funds w i 11 be recorded as ¿¡budget
expenditures during the current year,
because: of the time flag between the
placing of orders on the one hand,
and the! actua l| expend 1tures outs of
the Treasury on the other.
In 1952
and in subseauent years, however.
.«Ht
business facti v
8 ist
increased taxes
11 a iso
cts, lini part.
■the fact thatlexpendl..ture;$lotbe.r|than
defense jjjfor| the fisea I* yearl thus far!
have runIwei É be IowithosesofBa¡year
p r o g r a m ^
w o r e i f u 1 Iy |under
getary
ance eri I Ifebee orae lira
Pres i
M7
bili I ioni
the ¡prob in
new id
asked for
our system of free
A continued
economy
requ ires in the first instance a
sound Government fiscal position
are starting^this rearmament
Government
with the finances of
in a relatively strong position.
Revenues current Iy have come much
£1 I’m
than
reflects,
expendí tures
case a year
in part, the current high
IIf
CU
O’*5:itec itives End’ our def ense
ves,
c n ■t1#f
h1È.
fwA i
%»
on 6j li i 1 work a 1on D
the
*0
o trier •
*
feih■ 11 is i eces SET y , of co
tat
m
restr ict^'certain act iv Ìt i
ust tighten up in some fields.
J$>
M i i c- T
I# 0
at thfie
s e me
ti
it*
that incentivie, that fdrive,
But
eep s live
and that
force that hass made 1H p a great Natl
whI le bui Idinsg our de»^ 0
nougn Xo
one
hstand a ny
seeks b y i I t t a r y w ìe:ht
troy
industrial plant, capable of rapid
conversion to the production of war
notiln i itse If.
guarantee of eventual
sue
our efforts toward peace
* t i *
Equal 1y iroportant are the
make on the home front to
maintaini ng a sound and h
economy.
We must blend o
A
f¥|
y til
IT
of this cocnmun ity *s industrial empire
This re cord
industrial expansion
ver before for a tremendous productiv
Our4 factories have installed
most modern and most eft
ici
machines obtainable anywhere.fThey
&
put into effect the most recent
deve Iopments in product ion techn iques
and operatin
w a s .
an d are
continuine to seek new methods that
will yield greater productiv i
r»
CD
ans that we are better equipped than
i/O
business wentfahead inilthe postwar ^
period :and, by i.it own financing, ;
invested over $100 in I iion in new
plant anditequ ipment --;>.^efar greater
investment than
in any other comparab I
period in«our history.11 infjust the
first three years following the war,
private industry spent a quarter ofI a
bil I ion Ido M a r s « itr Greater- Cleveland^
aione!for expanded manufactur ing
facilities which have contributed
materially to the continued growth
Our present record prosperity
is
due in large measure to two fundamental
traits in our American character -confidence in ourselves and faith in
our future.
To my mind, no finer
expression of these traits can be
found than
program
in the record expansion
w h tc h
b u s in e s s
have carried out
the war.
and industry
in the years following
Without the investment of a
dollar by the Government,
private
«■»
I l\
diversified peacetime industries grew
into some oflthe greatestfwartime
production
known.
lines the world had ever
By the time our war effort
was at its height, Cleveland had
nearly doubled
Sill
'
f|||
its immediate prewar
11
**$$.*>
number of manufacturing workers and
tripled
its industrial
-M
ew
on that war,
output.
and we hoped we
had made safe our freedoms.
"Vith the
ending of hostilities we set about
to direct our new-found energies
it
into
e expanded our Nati
industrial plant to unprecede
h
U
and built the most effici
war production machine
h Is
K
infworld
ween 1941 and 1945,
oveminent alone invested some SIS
till
for new plants and equipment
And private industry1s contribution
n the same peri
reater
our own city of Cleveland became
one of our most productive arsenals
n
as that the seeds of many
somewhat visionary production goals
w
carry them
#a if*
- mt
a w ti
w V
I
to
M<
I I sure we could.
en t
& 1Ÿ* W
p
w e
Neverth Vai# I 1p11ew cW
tS
soon found out what we cou
cooperative effort.
Droved ecua I to a III the d# o i H B
upon theta.
Today,
m
welcan
e defenses of our country with a
n a t io n e
h!ch
is sounder
fisore f Iex ib Ie , andiraore vigorous
an it wasln.ine years ago or five
y ears ago.
0 j had no idea what ¡our
apac it* SS w0 ^ 0
wH 0 n we fee
resoonsibiIities we
in the
ays following Pearl H a r b o r .
eaK
9
for survival, and we were soon to prove
to ourselves and to the world that
a Nation of individuals, united- in
ouroose and dedicated to the
preservation of individual freedoms,
not only couIdloutfight but could
sought to force theirfautocracy upon
us.
of world crisis.
The invasion of
Korea, which warned the world of the
real designs of the Communist regime.
i.*tIce,-3»1 1hi n i | H s h o r 1 1 s p a c e ; a f
.
less than .rnr dccsae-
has been egi
our o^n ^ t ion
to marshal
• mii ttary
its
to res iII
s s
io n
w are s t i I I
sought
was
nine years ago
month that our nation
inf airoous Iy lat,ttCKe«at hear (¡¡Herbor
greatest *ar
all
SI 11
t i8 e
M ¿‘4I1
7
imi ted in extent,
has be
actual experience of human
eve
Offnecessi ty
ent years ar
change
W
inking a n o t 5cea
in thought to the Western
wor
■m
«Hr-
He have seen f
l o v i n g
nations swallowed
another,
through engineered
internal
dissension or inability to defend
themselves.
We are only now
learning
that freedom is somethin#' that can
maintained only through continual
unremitting effort.
-
-< • .§
s t r u g g 1eli®¡É r?iank indlhasibeen toward
K# f
an geverl 1sr ger measure jof
se 1f-gov er n¡ment and p e r s o n s 1 freedom.
But today this historic
End esoecia
w n Iwaylof i if©,
tened Oby
Is
y
SJ
Si
fy s
mm
unist
r
ideology
at direct iyffand brutally striKes
m I* ;¿»l
0 0 8
IS
■eedom.iof iustice
0 T
or individual
o
d
Hjére in America,
d
*
we are too I Ik eIy
to taKe our freedom for erarite-d.
We
for pet
how short
ime, and ho
Bfl
hundreds of thousands -- hopeful
people,|wiI 18ng tojbreak their home
ifl
S
ties in order to establish themselves
§
|
|
?
1
1
|
I
f
f
|
\
tf||§; .||| 11 §, ; '¡||' | |
/ffl
in a land of personal freedom.
America made a place for these
people.
/
Cleveland made a place for
them.f And.
it is not too much to s
that these new citizens,
in turn,
made a place for this country among
the great nations; for out of their
energy and hard work, and out of the
|
such a dis
gu i
group
iness and industria
ä inc e
j
§
1 V
cc
n
«¡P;
S *
ly years
site o
i
ity was ca
mm
n
■
out of the western
C IPV6 I
become
has grown
on
The following address by Secretary JEhyder before
a dinner meeting of The 50 Club of Cleveland at
the Union Club, Cleveland, Ohio, is scheduled far
delivery at 8 p«nu EST Thursday, December~2!1, 195>0
and is for release at that time.
312
TREASURY DEPARTMENT
Washington
The f o l l o w i n g address b y S e c r o t a r y S n y d e r
b e f o r e a d i n n e r m e e t i n g of The 50 C l u b of
C l e v e l a n d at the U n i o n Club, Cleveland,
Ohio, is sc h e d u l e d for d e l i v e r y at 8 p.m.
E S T Thursday, D e c e m b e r 21, 1950* a nd is
for re l e a s e a t 'that time .
It is a l ways a p l e a s u r e to v i s i t Cleveland, a nd I am
e s p e c i a l l y p l e a s e d a nd h o n o r e d this e v e n i n g to ad d r e s s such a
d i s t i n g u i s h e d g r oup of bu s i n e s s and i n d u s t r i a l leaders.
Since the e a r l y years of the Rep u b l i c , w h e n the site of this
cit y was c a r v e d out of the w e s t e r n w i l d e r n e s s , C l e v e l a n d has
g r o w n s t e a d i l y to b e c o m e one of our N a t i o n ' s great industrial,
i n t e l l e c t u a l and s p i ritual towers of strength.
The e x p l a n a t i o n
of its g r o w t h is found only p a r t i a l l y in l o c a t i o n a n d o t her
natural advantages.
It is found als o in the c o m p o s i t e c h a r a c t e r
a nd s t r e n g t h of all its people.
F r o m the e a r l i e s t days, C l e v e l a n d h as w e l c o m e d the p e o p l e of
m a n y n a t i o n a l i t i e s . B y b l e n d i n g the v a l u a b l e p e r s o n a l q u a l i t i e s
a n d t r a d i t i o n s b r o u g h t from the Nordic, C e l t i c a n d o t h e r c o u n tries
of the O ld W o r l d w i t h the r u g g e d q u a l i t i e s of C o l o n i a l p i o n e e r
stock, y o u not o n l y built a great city but y o u h e l p e d d e v e l o p
our d i s t i n c t i v e A m e r i c a n c h a r a c t e r a n d - A m e r i c a n m o d e o f living.
As a y o u n g Nation, the U n i t e d States was a h a v e n for the
p e o p l e of all nations, o f f e r i n g to the m f r e e d o m of spirit and
o p p o r t u n i t y d e n i e d the m in their o w n c o u n t r i e s . F r o m the old
w o r l d p e o p l e came b y the h u n d r e d s of t h o u s a n d s -- h o p e f u l people,
w i l l i n g to b r e a k their h o m e ties in o r d e r to e s t a b l i s h t h e m
selves in a land of p e r s o n a l freedom.
A m e r i c a m a d e a p l ace for these people.
Cleveland made a
p l a c e for them.
And, it is not too m u c h to say that these n e w
citizens, i n turn, m a d e a p l ace for this c o u n t r y a m o n g the great
nations* for out of their e n e r g y a n d h a r d work, a n d out of the
s t r e n g t h of their character, came m u c h of our v i t a l i t y as a
people.
S-25^4
313
-
2
-
A m e r i c a ' s e x a mple h as served to inspire a n i n c r e a s i n g n u m b e r
of o t h e r n a t i o n s to strive t o ward a g r e a t e r m e a s u r e of i n d i v i d u a l
freedom, and t o ward h i g h e r n a t i o n a l standards of i n d i v i d u a l w e l l
being.
Thi s d e v e l o p m e n t does not r e p r e s e n t a n e w t r e n d , but
a c o n t i n u a t i o n of one that has l o n g b e e n u n d e r way.
Throughout
r e c o r d e d history, in fact, the struggle of m a n k i n d h as b e e n
t o w a r d a n e v e r larger m e a s u r e of s e l f - g o v e r n m e n t an d p e r s o n a l
freedom.
B u t t o d a y this h i s t o r i c trend, and e s p e c i a l l y our o w n w a y
of life, is t h r e a t e n e d b y a c o m munist i d e o l o g y that d i r e c t l y
a nd b r u t a l l y strikes at our ideals of freedom, of justice, a nd
of i n d i v i d u a l opportunity.
H e r e i n America, we are too l i k e l y to take our f r e e d o m for
granted.
W e forget h o w short in time, a nd h o w li m i t e d in extent,
has b e e n the a c t u a l e x p e r i e n c e of h u m a n freedom.
Of necessity, the events of r e c e n t years are b r i n g i n g a
n o t i c e a b l e change in thought to the W e s t e r n world.
We have seen
f r e e d o m - l o v i n g n a t ions s w a l l o w e d up, one a f t e r another, t h r o u g h
e n g i n e e r e d i n t e r n a l d i s s e n s i o n or i n a b i l i t y to d e f e n d t h e m selves.
We are o n l y n o w l e a r n i n g that f r e e d o m is s o m e t h i n g that c a n be
m a i n t a i n e d o nly t h r o u g h con t i n u a l u n r e m i t t i n g e f f o r t .
Twice, w i t h i n the short space of less t h a n one decade, our
o w n N a t i o n h as b e e n called u p o n to m a r s h a l its gr e a t e s t m i l i t a r y
m i g h t to r e s i s t p o w e r f u l forces of a g g r e s s i o n w ho sought -- an d
e v e n n o w are still se e k i n g -- to d e s t r o y the m e a n i n g of A m e r i c a .
It was just n ine years ago this m o n t h that our n a t i o n was i n
f a m o u s l y a t t a c k e d at Pearl H a r bor.
We wer e p l u n g e d into f i g h t i n g
the g r e a t e s t w a r of all time.
It was a w a r for survival, and
we were s c o n to p r ove to ourselves a nd to the w o r l d that a N a t i o n
of i n d i v i d u a l s u n i t e d in p u r pose a nd d e d i c a t e d to the p r e s e r v a
t i o n of i n d i v i d u a l freedoms, not onl y could o u t f i g h t but could
o u t p r o d u c e the a g g r e s s o r s w ho t h e n sought to force t h e i r a u t o c
racy upon u s .
Today we are f a c i n g a n e w period of w o r l d crisis . The
i n v a s i o n of K o rea, w h i c h w a r n e d the w o r l d of the r eal d e s i g n s of
the C o m m u n i s t regime, has forced us a g a i n to take s t r o n g d e f e n
sive m e a s u r e s for the p r o t e c t i o n of our freedom.
The grave tur n
in the K o r e a n s i t u a t i o n d u r i n g the past m o n t h has m a d e e v e n m o r e
u r g e n t the nee d for a p o w e r f u l d e f e n s i v e m i l i t a r y e s t a b l i s h m e n t .
314
- 3 D e s p i t e the up h e a v a l s and strains of the pas t ten years,
our t r a d i t i o n a l A m e r i c a n i n s t i t u t i o n s and our t r a d i t i o n a l
A m e r i c a n s y s t e m of c o m p e t i t i v e e n t e r p r i s e h a v e so far p r o v e d
e q u a l to all the de m a n d s m a d e u p o n them.
Today, we can b u i l d
up the d e f e n s e s of our c o u n t r y w i t h a n a t i o n a l e c o n o m y w h i c h
is sounder, more, flexible, a nd m o r e v i g o r o u s t han it was nine
y e ars ago or five y e ars a g o .
W e h a d no idea w hat our capa c i t i e s were, w h e n we f a c e d the
r e s p o n s i b i l i t i e s we did in the b l e a k days f o l l o w i n g P e a r l H a r b o r .
We hoped; we set what seemed to us s o m ewhat v i s i o n a r y p r o d u c t i o n
goals; we w e r e d e t e r m i n e d to try to c a rry t h e m out; but we were
not at all sure we could.
N e v e r t h e l e s s , we w e n t to work, a nd
the w o r l d s o o n found out what we could a c c o m p l i s h by c o o p e r a t i v e
effort.
W e e x p a n d e d our N a t i o n ' s i n d u s t r i a l p l a n t to u n p r e c e d e n t e d
h e i g h t s a nd b u i l t the m o s t e f f i c i e n t w a r p r o d u c t i o n m a c h i n e i n
world history.
B e t w e e n 19^1 a nd 19^5, the G o v e r n m e n t a l one
i n v e s t e d some $16 b i l l i o n for n e w p l a n t s a nd e q u i pment.
And
p r i v a t e i n d u s t r y ’s c o n t r i b u t i o n in the same p e r i o d was e v e n
greater.
Y o u r o w n -city of C l e v e l a n d beca m e one of our m o s t p r o d u c t i v e
a r s e nals.
H e r e it was that the seeds of m a n y d i v e r s i f i e d p e a c e
time i n d u s t r i e s g r e w into some of the g r e a t e s t w a r t i m e p r o
d u c t i o n lines the w o r l d h a d ever known.
B y the time our w a r
e f f o r t was at its height, C l e v e l a n d h a d n e a r l y d o u b l e d its
i m m e d i a t e p r e w a r n u m b e r of m a n u f a c t u r i n g w o r k e r s and t r i p l e d its
i n d u s t r i a l output.
We w o n that war, and we h o p e d we h a d m a d e safe our freedoms.
W i t h the e n d i n g of h o s t i l i t i e s we set about to d i r e c t our newf o und e n e r g i e s into the paths of p e a c e .
O ur p r e s e n t r e c o r d p r o s p e r i t y is due i n large m e a s u r e to
two f u n d a m e n t a l traits in our A m e r i c a n c h a r a c t e r -- c o n f i d e n c e
in o u r s e l v e s an d f a i t h in our future.
To m y mind, no finer
e x p r e s s i o n of these traits c an be found t h a n in the r e c o r d
e x p a n s i o n p r o g r a m w h i c h bus i n e s s and i n d u s t r y h a v e c a r r i e d out
in the years f o l l o w i n g the war.
W i t h o u t the i n v e s t m e n t of a
d o l l a r b y the Government, p r i v a t e b u s i n e s s w ent a h e a d in the
p o s t w a r p e r i o d and, by its o wn financing, i n v e s t e d over $ 1 0 0
b i l l i o n in n e w p l a n t and e q u i p m e n t -- a far g r e a t e r i n v e s t m e n t
t h a n in a n y o t her com p a r a b l e p e r i o d in our his t o r y .
In just the
first three years f o l l o w i n g the war, p r i v a t e i n d u s t r y spent a
q u a r t e r of a b i l l i o n d o l l a r s in G r e a t e r C l e v e l a n d a l one for
e x p a n d e d m a n u f a c t u r i n g f a c i lities w h i c h hav e c o n t r i b u t e d m a t e r i
a l l y to the c o n t i n u e d g r o w t h of this c o m m u n i t y ' s i n d u s t r i a l empire.
315
- 4 -
. This J ecord industrial expansion means that we are better
equipped than ever before for a tremendous productive effort
Our factories^have installed the most modern and most efficient
machines obtainable anywhere.
They have put into effect the
most recent developments in production techniques Ind operating
~ ' k » »
- « » I *
«¥>* »i?i , 1 « !
further large expansion in steel capacity is under wav
We sr>e
S i y ' r f t f o f w o ^ n 8 " ?? a ?:ate 50 p e ? cent
highest
t h a n one
^ L 11 * 0 ur p r o v e d 0 1 1 r e s e r v e s are m o r e
^
th W gher than at the end ° f the war, a nd are
s e a d i l y i n c r e asing.
A r e c o r d e x p a n s i o n p r o g r a m h as b e e n c a r r i e d
others.
petroleum industry, the chemical industry, an? m ^ y
U n f o r t u n a t e l y , however, a s t r o n g i n d u s t r i a l p l ant
of r a p i d c o n v e r s i o n to the p r o d u c t i o n of w a r m a t e r i a l s
capable
i s m t
p?ac e5l
m ?stability.
t f M U ? v ee Equally important
S?°°essare
ln the
our efforts
effo^ s we
toward
peace
ana
maVe
W e m u s t ^ b l e n ^ o r c t o w a r d . m a i n t a i n i n g a s o und a nd h e a l t h y e c o nomy,
we m u s t b l e n d our e c o n o m i c obj e c t i v e s and our d e f e n s e o b i e o t i v p ^
so that one w i l l w o r k a l o n g w i t h the other.
QeleJlse objectives,
It is necessary, of course, that we restrict certain a c t l v
ities
We must tighten up in some fields. But we m?st at t?I
same time, keep alive that incentive, that drive and that f o ? ™
that has made us a great Nation, while building our defenses
a* T ? gten‘?usb to withstand any force which seeks by military
might to destroy our system of free enterprise, ou? w?y o? life.
„
A continued strong economy requires in the first i n s t a n c e
a sound Government fiscal position? We are starting'this
rearmament program with the finances of the Government In a
relatively strong position. Revenues currently have come much
T M s e? J w t lar\°ing eJPenditures than was the ca st a r Z t ?go
a?tivity 1andStben -Part’ ^ c u r r e n t high rates of business
activity and the increased taxes voted by the 8lst Coue-^qc,
T -h
of a ? L r ?go
y
*■”
r
? » 1
« « tSwel1
ii S
hUS far have run
' ? ; » 11
bel°w those
But as the defense program gets more fully under w a v
.balance w i l l b e c o m e m o r e serious
The
P r e s i d e n t a s k e d for $ 1 7 b i l l i o n of n e w d e f e n s e a p p r o p r i a t i o n s
316
- 5 -
soon after the Korean situation developed, and the Congress
I t'p m m i -m ^he i'u n d s ‘ Tile first of this month he asked for
$!« Million more.
Only a small part of these funds will be
reoorded as budget expenditures during the current year, because
tlm+ 1?S between the Placing of orders on the one hand
?nd ioR 9
exP&ndltures out of the Treasury on the o t h e r /
W?T 1 S f f t 111 s^ b®® 1^ ent y©ars, however, defense expenditures
a “^ oh higher level.
If we are to carry out a policy
of financing the greatest possible amount of these costs by
taxation, much larger increases in taxes will be required than
y g - " « y y alr,aiy
» *«
aJequate tax revenues are the .first essential of a
sound Federal fiscal program, they are not the only essential.
?\k a ,?u^ 1£ det)t of the present size, the Government has an
mil^fnnq 0nf 0nnthe-f^SheSt-0r^ er to Protect the investment of the
^ ¿ J 10113 of our citizens in Federal securities . This means a
debt management program which is planned and carried out in
such a way as to contribute in maximum degree to the stabilitv
and well-being of the Nation's economy.
s^aointy
accomplish this, we have pursued the policy of
hand^nf
Federal debt out of commercial banks and into the
hands of private nonbank investors.
During 1950, holdings of
Government securities by private nonbank investors will be
increased by $5 billion, raising them to an all-time peak while
overnment security holdings of the commercial banking system
will oe reduced $5 billion to a new postwar low.
Over a three
Feap Pfp:LOdJ the reduction will total nearly $11 billion.
This
ia^da'tlon control action has been one of the important objectives
of Treasury debt management.
v
oDjecrives
In addition to these important fiscal objectives, there are
necessary at this time.
To maintain the soundi0n ? credit structure, it has been necessary to
r e s t n c t the expansion of credit for certain civilian uses,
needPdSioP r ^ ? T ^ ?en
t0 assure adacluate
financing where
needed to facilitate military production.
It has now become
necessary under the present emergency mobilization for the
Government to invoke more direct controls.
As individuals we
in?r>f°n iribUte t0 thlS effort through self-restraint and by
increasing our savings.
J
In a full war emergency, personal restraint and selfsacrifice are demanded of all of us, and this is no less true
1 ^ eI f t ® en°y that W n f K m f B us today.
Certainly no measures
ca^ be f u A n ^ 6?- may / a k e to hold down inflationary pressures
can be fully effective without the wholehearted support and
cooperation of every group and every active citizen in our Nation
317
-
6
-
The defense mobilization job that lies ahead is one that
Wlth
5ense of its urgency and its meaning.
To
have to convert the fruits of labor, the products of our raw
materials
the benefits of our intelligence of management, of
our technical knowledge, into destructive instruments rather
than productive machinery is not only a costly process
it is
-unhappy pro c e s s . It is, nevertheless, a job we must do -and. do well -- if we are to maintain our way of life.
Today the survival of freedom in our own country, in the
iia^ ons ^hich look to us for leadership, and in the hearts
of all those for whom freedom is still a hope, depends in
large part on the policies which we pursue and the individual
actions which we take here at home.
If we remain strong in
™ ^ 4-CleaV f P urP 0®e ^.and steadfast in our determination to
protect our American beliefs and our American principles
there
can be no doubt of the ultimate triumph of the cause of freedom
throughout the world.
1
oOo
L*-f
HA
A
Frank Dow, Commissioner of Customs, announced today that collectors
of customs will, when requested, open offices on Sunday, December 31>
to accept entries of merchandise, warehouse
withdrawals* and
estimated
duties. Applications for immediate liquidation and entries for such
liquidation in foreign trade zones also may be made.
Importers desiring
service must apply in advance, and must reimburse the Government for
overtime pay of employees called on duty.
Business will be transacted
between 8 : 3 0 a.m. and 5 P*m*
Mr. Dow said the additional business day is being arranged to accom
modate United States importers whose interests may be affected by termi
nation of the Mexican Trade Agreement, effective January 1 in accordance
with the Proclamation of the President issued September 6, 1950.
Similar service to the importing public was provided by Customs on
Sunday, December 10, coincident with partial termination of the Chinese
Trade Agreement.
Customs offices will observe the usual Saturday closing on December 30,
and will be closed on New Year’s Day.
/
TREASU RY DEPARTMENT
Information Service
WASHINGTON, D .C .
319
IMMEDIATE RELEASE,
Thursday, December 21, 1 9 5 0 .
S-25^5
Frank Dow, Commissioner of Customs, announced
today that collectors of customs will, when requested,
open offices on Sunday, December 31* to accept entries
of merchandise, warehouse withdrawals, and estimated
d uties. Applications for immediate liquidation and
entries for such liquidation in foreign trade zones
also may be made.
Importers desiring service must
apply in advance, and must reimburse the Government
for overtime pay of employees called on duty.
Business will be transacted between 8:30 a.m. and
5 p.m.
Mr. Dow said the additional business day is
being arranged to accommodate United States importers
whose interests may be affected by termination of the
Mexican Trade Agreement, effective January 1 in
accordance with the Proclamation of the President
issued September 6 , 1950.
Similar service to the importing public was
provided by Customs on Sunday, December 10, coincident
with partial termination of the Chinese Trade Agreement.
Customs offices will observe the usual Saturday
closing on December 30, and will be closed on New
Year's Day.
oOo
ESIisASÊ MQRNIKG HEWSPAPMtS,
Saturday7", December 23»J-?$0,
I
0
[/ CT
<p
c L f
ü
The Secretary of thé treasury announced last evening that the tenders for
$1,000,000,000, or thereabouts* of 91-day treasury bills to be dated December 20* 19ü>0,
and to mature March 29* 19$1, which were offered on December 19* were opened at the
Federal Reserve Banks on December 22»
the details of this issue are as follows*
total applied for - #1,811,16$,000
total accepted - 1,001*£39,000 {includes #98,88$,000 entered on a non
competitive basis and accepted in full
at the average price shown below)
Average price
- 99«6$X Equivalent rate of discount approx* 1.332$ per annum
Range of accepted competitive bides
High
Urn
- 99.668 Equivalent rate of discount approx. 1.313$ per annum
~ 99.6!*9
*
*
*
"
*
1.389$ •
(!i6 percent of the amount bid for at the low price was accepted)
Federal Reserve
District____
total
Applied for
20,31*^,000
1,355,2X5,000
1*6,752,000
30, 31il*,ooo
17,629,000
6,90it,000
151,1*53,000
20,581,000
7,31*1*, 000
23,931*,000
51*,755,ooo
75,913,000
1
Boston
Hew York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. louis
Minneapolis
Kansas City
Dallas
San Francisco
$1,811,166,000
TOTAL
j
total
Accepted
1
18,261*,000
6$?, 300,000
39,052,300
27,61(1*,000
17,629,000
6,90k,000
1X3,691,000
10,71*1,000
7,31*1*,000
23,931*,000
36,655,000
1*2,381,000
$1,001,539,000
»
321
R E L E A S E M O R N I N G NEWS P A P E R S ,
Saturday, D e c e m b e r 23, 1950»
S -2546
The S e c r e t a r y of the T r e a s u r y a n n o u n c e d last e v e n i n g that the
tenders for $ 1 , 0 0 0 , 0 0 0 , 0 0 0 , or thereabouts, of 9 1 - b a y T r e a s u r y b i l l s
to be dated December 28, 1950, a nd to m a t u r e M a r c h 2 9 , 1951, w h i c h
were offered on December 1 9 , wer 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
on December 22 .
The d e t a i l s of this issue are as follows;
T o t a l a p p l i e d for - $ 1 , 8 1 1 , 1 6 8 , 0 0 0
Total accepted
1,001,539/000
A v e r a g e p r ice
Range
of a c c e p t e d
(includes $ 9 8 ,8 8 5,0 0 0 e n t e r e d
o n a n o n - c o m p e t i t i v e basis
a nd a c c e p t e d in full at the
a v e r a g e p r ice s h o w n below)
- 9 9 . 6 5 1 E q u i v a l e n t rate of d i s c o u n t approx.
1 .382 $ p e r a n n u m
c o m p e t i t i v e bids:
9 9 .6 6 8 E q u i v a l e n t rate of d i s c o u n t approx.
1 .3 13 $ P e r a n n u m
High
-
Low
- 9 9 . 6 4 9 E q u i v a l e n t rate of d i s c o u n t approx.
1 .389 $ p e r a n n u m
(46 p e r c e n t of the a m o u n t b id for at the low p r ice was acc e p t e d )
Federal R e s e r v e
D i s t r i c t ________
$
Boston
New Y o r k
Philadelphia
C l e v eland
Ri c h m o n d
A t l anta
Chicago
S t . Louis
Minneapolis
Kansas C i t y
Dallas
San F r a n c i s c o
TOTAL
Total
Accepted
T o tal
A p p l i e d for
20,344,000
$
18,264,000
1 ,355 ,215,000
6 5 7 ,30 0 ,0 0 0
46.752.000
30.344.000
1 7 .6 29 .0 0 0
6.904.000
151,453,000
20,581,000
7.344.000
23.934.000
5^,755,000
75.913.000
39.052.000
27.644.000
6.904.000
1 1 3 ,6 9 1,0 0 0
10.741.000
7.344.000
23.934.000
3 6 .6 5 5 .0 0 0
42,381,000
$1 , 81 1 , 168,000
$ 1 , 0 0 1 ,5 3 9 , 0 0 0
0 O0
.
17 629.000
-3 -
any State, or any of the possessions of the United States, or by any local tax
ing 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
U2 and 117
(a)
(1) of
as amended by Section llf> of the Revenue Act of
the Internal Revenue Code,
19U1, the
amount of discount at
which bills issued hereunder are sold shall not be considered to accrue until
such bills shall be sold, redeemed or otherwise disposed of, and such bills are
excluded from consideration as capital assets.
Accordingly, the owner of
Treasury bills (other than'life insurance companies) issued hereunder need in
clude in his income tax return only the difference between the price paid for
such bills, whether on original issue or on subsequent purchase, and the amount
actually 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. iO-8, as amended, and this notice, prescribe
the terms of the Treasury bills and govern the conditions of their issue.
of the circular may be obtained from any Federal Reserve Bank or Branch.
Copies
-
2
-
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 Ranks 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 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
January^. 19$1
>
an 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.
January
\u
Cash adjustments will te
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.
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
TREASURY DEPARTMENT
Yiashington
FOR RELEASE, MORNING NEWSPAPERS,
Tuesday, December 26« 1?5>0
gj—
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
January k. 19^3---- > to 1x5 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
April 5. 1951
January U, l?£l----- .» 311(1
> '*°n the face amount vri.ll be payable without
They will be issued in bearer form only, and in denominations of
11,000, $5,000, $10,000, $100,000, $500,000, and $1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the
closing hour, two oiclock p.m., Eastern Standard time, Friday. December 29' „1250•
Tenders will not be received at the Treasury Department, Washington.
Each tender
must be for an even multiple of $1,000, and in the case of competitive tenders
the price offered must be expressed on the basis of 100, vdth not more than three
decimals, e. g.,
99.925.
Fractions may hot be used.
It is urged that tenders
be made on the printed forms and forwarded in the special envelopes which will
be supplied by Federal Reserve Banks or Branches on application therefor.
Others than banking institutions will 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.
by payment of
2 percent
Tenders iron others must be accompanied
of the face amount of Treasury bills applied for,
TREASURY DEPARTMENT
Information Service
R E L E A S E M O R N I N G N EWSPAPERS,
Tuesday, D e c e m b e r 26. I Q 5 0 .
Wa s h i n g t o n , d .c .
S - 25.47
The S e c r e t a r y of the Treasury, b y this p u b l i c notice, invites
tenders for $1, 0 0 0 , 0 0 0 , 0 0 0 , or thereabouts, of 9 1 ~ (3-ay T r e a s u r y bills
for cas h a nd in e x c h a n g e for T r e a s u r y bills m a t u r i n g J a n u a r y 4 ,
1951, to be issued on a discount basis under competitive and non
competitive bidding as hereinafter provided.
The bills of this
series will be dated January 4, 1951, and will mature April 5, 1951,
when the face amount will be payable without interest.
They will
be issued in bearer form only, and in denominations of $1,000,
$5,000, $10,000, $100,000, $500,000, and $1,000,000 (maturity value)
T e n d e r s w i l l be r e c e i v e d at .Federal R e s e r v e B a n k s a nd 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., E a s t e r n S t a n d a r d time,
Friday, D e c e m b e r 29, 1950.
Tenders w i l l no 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 for a n e v e n
m u l t i p l e of $ 1 , 000 , and in the case of c o m p e t i t i v e tenders the p r i c e
offered m u s t be e x p r e s s e d on the basis of 1 0 0 , w i t h n ot m o r e t h a n
three decimals, e. g., 99*925.
F r a c t i o n s m a y no 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 a r d e d in
the s p ecial e n v e l o p e s w h i c h w ill be sup p l i e d by F e d e r a l R e s e r v e
B a nks or B r a n c h e s on a p p l i c a t i o n therefor.
Others t h a n b a n k i n g i n s t i tutions w i l l not be p e r m i t t e d to
submit tenders e x cept for their o w n a c c o u n t . 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 de p o s i t from i n c o r p o r a t e d b a nks a nd t r ust co m p a n i e s
and fro m r e s p o n s i b l e and r e c o g n i z e d de a l e r s in i n v e s t m e n t s e c u r i t i e s
Tenders f r o m others m u s t be a c c o m p a n i e d b y p a y m e n t of 2 p e r c e n t of
the face a m o u n t of T r e a s u r y bills a p p l i e d for, u n l e s s the tenders
are a c c o m p a n i e d b y a n express 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 trust company.:
I m m e d i a t e l y a f t e r the cl o s i n g hour, tenders w i l l be o p e n e d at
the F e d e r a l R e s e r v e B a n k s and B r a nches, 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
amount and p r i c e range of a c c e p t e d b i d s . T h ose s u b m i t t i n g tenders
will be a d v i s e d of the a c c e p t a n c e or r e j e c t i o n thereof.
The
S e c r e t a r y of the T r e a s u r y e x p r e s s l y r e s e r v e s the r i ght to a c c e p t or
reject a n y or all tenders, in w h ole or in part, a n d h i s a c t i o n in
any such re s p e c t shall be final.
Su b j e c t to these 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 tenders for $ 20 0 ,0 0 0 or less w i t h o u t stat e d p r ice
from a n y one b i d d e r w i l l be a c c e p t e d i n full at the a v e r a g e p r i c e
2
( m three 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 bids.
S e t t l e m e n t for
a c c e p t e d t e n d e r s in a c c o r d a n c e w i t h the bids 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 J a n u a r y 4, 1 Q 5 1
in cash
or o t h e r i m m e d i a t e l y a v a i l a b l e funds or i n a like face a m o u n t of
Treasury bills maturing January
1951.
C a s h a n d e x c h a n g e tenders
YJrii r e c e i v e e q u a l treatmen t.
C a s h a d j u s t m e n t s w i l l be m a d e 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 lls a c c e p t e d in
e x c h a n g e a n d the issue p r i c e of the n e w bills.
•
income d e r i v e d f rom 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 m fro m the sale or o t h e r d i s p o s i t i o n of the bills, shall n o t
h a v e a n y exemption, as such, and loss f r o m the sale or o t h e r
d i s p o s i t i o n of T r e a s u r y bills shall n ot 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
s u p p l e m e n t a r y thereto.
The b i l l s shall be s u b j e c t to esta t e
inhe r i t a n c e , gift or o t h e r excise* taxes, w h e t h e r F e d e r a l or State
but shall be e x e m p t f r o m all t a x a t i o n n o w or lier a f t e r i m p o s e d o n I •
the p r i n c i p a l or i n t e r e s t t h e r e o f b y a n y State, or a n y of the
p o s s e s s i o n s of the U n i t e d States, or by a n y local t a x i n g a u t h ority;
r*on 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 lls are o r i g i n a l l y sold b y the U n i t e d States shall be c o n s i d e r e d
to be interest.
U n d e r S e c tions k2 and 1 1 7 (a) (l) of the In 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 Act of 19^1
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 are sold
shall n ot be c o n s i d e r e d to a c c r u e until such b i lls shall be sold,
r e d e e m e d or o t h e r w i s e d i s p o s e d of, a nd such b i l l s are e x c l u d e d from
c o n s i d e r a t i o n as c a p ital assets.
A c c o r d i n g l y , the o w n e r of Treasury
J)li'r‘s * otJler tha n life i n s u r a n c e comp a n i e s ) i s s u e d h e r e u n d e r need
in c l u d e i n h is i n c o m e tax r e t u r n o nly 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 for such bills, w h e t h e r o n o r i g i n a l issue or o n s u b
s e q u e n t p u r chase, a nd the a m o u n t a c t u a l l y r e c e i v e d e i t h e r u p o n
sale or r e d e m p t i o n at m a t u r i t y d u r i n g the t a xable y e a r f o r w h i c h
the r e t u r n is made, as o r d i n a r y g a i n or loss.
T r e a s u r y D e p a r t m e n t C i r c u l a r No. ¿1-1 8 , as amended, a n d this
notice, p r e s c r i b e the terms of the T r e a s u r y bills 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.
Copies 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 .
0O0
STAND ARD FORM NO. 64
Office Memorandum
TO
:
•
UNITED STATES GOVERNMENT
d a t e
:
December 27, 1950
FROM
SU B JE C T :
We would appreciate your release of the attached story
to the press associations for afternoon papers, Thursday,
December 28.
In addition, would you put into our hands 400 mimeographed
copies of the release for handling by us. As you know our
copies are used for promotional purposes by our various state
offices.
É
Ki
Secretary Snyder today announced the appointment of Willard Springer, Jr.,
President of the Industrial Trust Company of Wilmington, Delaware, as Chairman
of the Treasury Advisory Committee on Savings Bonds for the State of Delaware.
acCTMl&uy OiiycLur said? ^lr. Springer’s *§■4 experience and H n abilities
will be of great value to the Savings Bonds Program^
Advisory committees are established in each State and the District of
Columbia to consult with the Treasury on its program to promote the sale o
Savings Bonds through payroll savings, banks, schools and business and civ
groups.
s-time resident of Delaware, Mr. Springer is widely known not only
tivities in the hanking world hut also in public service. He is a
aware State Liquor Commissioner and former State Director of Federal
ainistration. He is currently Chairman of the Delaware Forestry
, Chairman of Board of Trustees of the Alfred I. duPont School, and
f Board of Trustees of the Delaware Sta*te Hospital. His business
activities also include directorships with the Delaware Coach Company and the
Baltimore & Philadelphia R.R. Company.
■
I
\
\
I
His home is in Rockland, Delaware. He holds memberships in the Delaware
ciety of American Foresters, Rotary Club, Wilmington Country Club, Wilmington j
ub, Delaware Swedish Colonial Society, Delta Kappa Epsilon and Maryland
f
storical Society. He is a graduate of
hool. v
TREASURY DEPARTMENT
Information Service
WASHINGTON, D .C .
328
FOB RELEASE, AFTERNOON NEWSPAPERS
Thursday, December 28, 195Q
S-2548
Secretary Snyder today announced the appointment of
Nillard Springer, Jr., President of the Industrial Trust Company
of Wilmington, Delaware, as Chairman of the Treasury Advisory
Committee on Savings Bonds for the State of Delaware.
A life-time resident of Delaware, Mr. Springer is widely
known not only for his activities in the banicing world but also
in public service. He is a former Delaware State Liquor Com
missioner and former State Director of Federal Housing Adminis
tration. He is currently Chairman of the Delaware Forestry
Commission, Chairman of Board of Trustees of the Alfred I.
duPont School, and Chairman of Board of Trustees of the Delaware
State Hospital, His business activities also include director
ships with the Delaware Coach Company and the Baltimore &
Philadelphia R . R . Company.
His home is in Rockland, Delaware. He holds memberships
in the Delaware Society of American Foresters, Rotary Club,
Wilmington Country Club, Wilmington Club, Delaware Swedish
Colonial Society, Delta Kappa Epsilon and Maryland Historical
Society. He is a graduate of Lafayette College and the Yale
Forest School,
"Mr, Springer♦s experience and abilities will be of great
value to the Savings Bonds Program", Secretary Snyder said.
Advisory committees are established in each Stato and the
District of Columbia to consult with the Treasury on its program
to promote the sale of Savings Bonds through payroll savings,
banks, schools, and business and civic groups.
0O0
ese
It,
IMMEDIATE E&B&SB
y
<r
Dv
C
ytt
mJ *
■*'&<*
eg?
~
Thursday, December ZB» I960
Secretary of the Treasury Snyder today reminded the people of the United
States that our savings bond program has played and continues to play a most
important part in assuring the financial health of the Kation and in enabling
all of our people to share in the responsibilities of Government will© at the
same time they provide for their osn personal future security* He said that
the Treasury is, therefore, continuing its program of urging individuals to
buy more savings bonds*
In furtherance of this policy, the Secretary called attention to the fact
that individual holders of the Series H H l Savings Bonds, which start maturing
January 1, 1951, are permitted to reinvest the proceeds, as they mature, in
the Series I Savings Bonds which are currently on sale, without regard to the
annual limitation. This can be accomplished through the established payment
and issue procedure, and the Series I bonds so acquired will be exempt from the
#10,000 (maturity value) annual limitation on holdings of Series I bonds*
Holders will be permitted to reinvest any part of the proceeds of their matur
ing bonds up to such denominational amount as the proceeds will fully cover.
Since Series I bonds may be purchased only in the names of individuals, only
those Series 0-1941 Savings Bonds held by individuals will be eligible for this
privilege.
any agent qualified to pay Savings Bonds, which is also an issuing agent,
can accomplish this exchange through the simple procedure of redeeming matured
bonds registered in the name of an individual owner or coowner, and applying
the proceeds to the purchase of new Series I bonds. The bonds may also be
exchanged, of course, at any Federal Reserve Bank or Branch, or at the Treasury
Department.
The new bonds will be dated as of the first day of the month is which the
matured Series 0*1941 Savings Bonds are presented for payment. In order to
preserve the continuity of the investment, individual holders of the maturing
bonds should present them for exchange during the month in which they mature*
This exchange privilege applies to savings bonds of Series 0*1941, which
will mature from January 1, 1961 through April SO, 1951. At a later date the
Treasury will announce its policy with respect to savings bonds of Series
£-1941, which begin to mature on May 1, 1961*
-Jim i
nifran
330
IMMEDIATE m M S B \
Thursday, December 28. 1950
S-25A9
^
Secretary of the Treasury Snyder today reminded the people of the United
Spates that our^ savings bond program has played and continues to play a most
important part in assuring the financial health of the Nation and in enabling
all of^our people to share in the responsibilities of Government while at the
same time they provide for their own personal future security«. He said that
the Treasury is, therefore, continuing its program of urging individuals to
buy more savings bonds«,
.. .
f u r t h e r a n c e of this policy, the Secretary called attention to the fact
ohat individual holders of the Series D-1941 Savings .Bonds, which start maturing
January 1, 1951, are permitted to reinvest the proceeds, as they mature in
the Series E Savings Bonds which are currently on sale, without regard to the
annual limitation« This can be accomplished through the established payment
??? n n i w P ^ ^ u r e , and the Series E bonds so acquired will be exempt from the
^10,000 (maturity value) annual limitation on holdings of Series E bonds«
Holders will be permitted to reinvest any part of the proceeds of their matur
ing bonds up to such denominational amount as the proceeds will fully cover«
Since Series E bonds may be purchased only In the. names of individuals only
those Series D-1941 Savings Bonds held by individuals will be eligible*for this
privilege«
Any agent qualified to pay Savings Bonds, which is also an issuing agent
can accomplish this exchange through the simple procedure of redeeming matured
oonds registered in the name of an individual owner or coowner, and applying
the proceeds to the purchase of new Series E bonds« The bonds may also be
exchanged, of course, at any Federal Beserve Bank or Branch, or at the Treasurv
Department«
3
*
>The new bonds will be dated as of the first day of the month in which the
matured Series D-1941 Savings Bonds are presented for payment« In order to
preserve the continuity of the investment, individual holders of the maturing
bonds should present them for exchange during the month in which they mature«
This exchange privilege applies to savings bonds of Series D - 1 9 4 1 which
will mature from Januaiy 1, 1951 through April 30, 1951« At a later date the
Treasury will announce its policy with respect to savings bonds of Series
E-1941, which begin to mature on May 1 , 1 9 5 1 «
0O0
2T
à
s**,»
“sfe.
Proposed for the P/ess
Charles Stevenson, Deputy Commissioner of Customs and head of the
>
<
^
Division of Appraisement Administration, is retiring December 31, the Bur
eau of Customs announced today.
Mr. Stevenson is a veteran of more than
51 years Government Service, of which
kk
years have been with the Treasury.
He will receive the Department’s Gallatin Award for long and distinguished
service..
Mr. Stevenson has had supervision over the offices of the appraisers
of merchandise throughout the Customs Service since 1^3° irlwn throw nfflrrru _
TWHW—T rtifrffV il T 'c fl
M i r l n n uT-ifcy
u t i A wm
il 1
was appointed Deputy Commissioner in October 19^9»
advisory classification and value determinations,
frs
tariff purposes,
6T
allMciSbort'edT^cnerchanc
Mr. Stevenson is a native of Buffalo, New York.
He came to Washington
as a youth, and entered the Government as a special delivery messenger for
the City Post Office, serving in various capacities in the Postal Service,
and later in the Department of Commerce, until 1906, when he transferred
to Treasury.
Meanwhile, he was continuing his education at the George
Washington University and Georgetown University, winning his law degree
from the latter institution.
He is a member of the District of Columbia Bar.
Mr. Stevenson found his opportunity to employ his legal training in a
move to the Bureau of Customsfin 1911* as a law cler^i
He became a customs
agent in 1 9 1 7 . At that time, one of the functions of the Agency Service
was to make periodic examinations of customs ports and districts.
Mr.
Stevenson soon became a specialist in this work, and for many years was a
member of the Port Examination Commissionynade up of a small group of
especially chosen agents.
T>
TREASURY DEPARTMENT
Information Service
WASHINGTON. D. C .
333
R E L E A S E M O R N I N G NEWSPAPERS,
S a t u r d a y , D e c e m b e r 30» 1 9 5 0 «
S-2550
C h a r l e s Stevenson, D e p u t y C o m m i s s i o n e r of C u s toms a nd h e a d
of the D i v i s i o n of A p p r a i s e m e n t A d m i n i s t r a t i o n , is r e t i r i n g
D e c e m b e r 31? the B u r e a u of C u s t o m s a n n o u n c e d today.
Mr. S t e v e n s o n
is a v e t e r a n of m o r e t h a n 51 y e ars G o v e r n m e n t Service, of w h i c h
bk y e a r s h a v e b e e n w i t h the Treasury. He w i l l r e c e i v e the
D e p a r t m e n t ’s G a l l a t i n A w a r d for l o n g a n d d i s t i n g u i s h e d service.
Mr. S t e v e n s o n has h a d s u p e r v i s i o n ove r the o f f i c e s of the
a p p r a i s e r s of m e r c h a n d i s e t h r o u g h o u t the Customs S e r v i c e since
1 9 3 8 . He w as a p p o i n t e d D e p u t y C o m m i s s i o n e r i n O c t o b e r 19^9.
Mr. S t e v e n s o n is a n a t i v e of B u f f a l o , H e w Y o r k .
H e came
to W a s h i n g t o n as a youth, and e n t e r e d the G o v e r n m e n t as a
sp e c i a l d e l i v e r y m e s s e n g e r for the C i t y Post Office, s e r v i n g in
v a r i o u s c a p a c i t i e s in the P o s t a l Service, a nd l a t e r i n the
D e p a r t m e n t of Commerce, u n t i l 19 0 6 , w h e n h e t r a n s f e r r e d to
Treasury.
Meanwhile, he was c o n t i n u i n g his e d u c a t i o n at the
G e o r g e W a s h i n g t o n U n i v e r s i t y and G e o r g e t o w n U n i v e r s i t y , w i n n i n g
h is la w d e g r e e from the latter i n s t i t u t i o n .
H e is a m e m b e r of
the D i s t r i c t of C o l u m b i a Bar,
Mr. S t e v e n s o n found h is o p p o r t u n i t y to e m p l o y h i s legal
t r a i n i n g in a m o v e to the B u r e a u of Customs, as a la w clerk,
i n 1911.
H e b e c a m e a customs a g ent in 1917.
A t that time, one
of the f u n c t i o n s of the A g e n c y Service was to m a k e p e r i o d i c
e x a m i n a t i o n s of customs ports and d i s t r i c t s .
Mr. S t e v e n s o n
s o o n b e c a m e a spe c i a l i s t in this work, and for m a n y y e ars was
a m e m b e r of the Port E x a m i n a t i o n Commission, m a d e up of a small
g r oup of e s p e c i a l l y c h o s e n a g e n t s .
H e h a d spe c i f i c assi g n m e n t s as a g e n t at v a r i o u s times i n
W a s h i n g t o n , D. C., Philadelphia, Buffa l o , a n d Tampa, s e r v i n g as
s u p e r v i s i n g customs a g e n t for a time in the l a t t e r d i s t rict.
In
a d d i tion, he was d e t a i l e d to W a s h i n g t o n h e a d q u a r t e r s for s e v e r a l
s p e c i a l a s s i g n m e n t s b e fore b e i n g n a m e d s u p e r v i s o r of the n e w l y
o r g a n i z e d A p p r a i s e m e n t Service in 1938.
Mr. a nd Mrs. S t e v e n s o n r e side at the K e n n e d y - W a r r e n Apartment?
3133 C o n n e c t i c u t Avenue, Northwest.
A s s o c i a t e s w i l l h o n o r the r e t i r i n g d e p u t y c o m m i s s i o n e r at
a r e c e p t i o n at the C a r l t o n Hotel, o n the e v e n i n g of J a n u a r y 12.
0O0
IMMEDIATE RELEASE,
Friday, December 29* 1950»
The Secretary of the Treasury today announced the breakdown, by Federal Reserve
Districts and by classes ©f investors, of the special purchases of Series F and
Series 0 Savings Bonds during the period December 1 through December 11, 1950, the
last period for purchasing bonds pursuant to the special offering concerning which
details with respect to eligible purchasers and amounts were released on September 15.
The bonds purchased this month, together with those purchased under the terms of the
special offering In October and November, totaled $208 million of Series F and 1722
million of Series 0, or a total of 1930 million of botò series*
The details of the December purchases are as follows t
Federal Reserve
District
Boston * * . «
Hew York * . •
Philadelphia *
Cleveland • •
Richmond * * *
Atlanta • » •
Chicago « « «
St • Louis * *
Minneapolis *
Kansas City .
Dallas * * . .
San Francisco
Treasury • • •
TOTAL * .
f
Serie«
•
•
*
«
*
*
•
•
.
*
.
•
#
.
• • #.
• e e
♦ « ♦
e
♦
♦
e
1 +
0
• ♦
• e #
♦
# «
♦ •
•
# • «
• » s
•
e
e
s 1
155,1)00.00
10,009,351,00
«
•
506,992.50
•
1 ,712,822.50
998,056.50
•
♦
862,1(51.50
13 ,262,002.50
#
3,672,953.00
0
1»,1)86,213.00
0
1),302,730.00
535,889.00
0
0
5,236,813.50
«* •
♦
# U»5,7la,675.00
Series Q
Total
• 10,789,800
26,338,300
6,903,000
7,726,000
10,239,800
7,701»,000
19,717,900
7,760,900
10,332,000
7,788,800
5,196,000
10,1)53,000
*
10,91)5,200.00
36,31)7,651.00
7,1)09,992.50
9,1)38,822.50
11,237,856.50
8,566,1)51.50
32,979,902.50
11,1)33,853.00
H»,8l8,213.00
12,091,530.00
5,731,889.00
15,689,813.50
150,000.00
1176,81)1,175.00
150.000
1131,099,500
Q
fatal
Classes of Investors
Series F
Series
Insurance companies* * • * * • • • «
Savings banks * * • * • * . « « * •
Savings & loan associations &
building le loan associations,
and cooperative banks* * * # • • •
Pension & retirement funds ........
Fraternal benefit associations • • «
Endowment funds* • * • • • • • * « «
Trusts for charitable, educational,
religious or other public purposes,
& State le municipal sinking funds*
Credit unions* * • * * • « • • « * *
Commercial and industrial banks* * *
TOTAL
♦
• 1),26?,062,00
71»,000.00
$ 20,927,300
10,550,000
• 25,191»,362.00
1 0 621 000.00
1»,153,700
1»,632,780.00
S2,9l»0,8?6.00
1,166,1»82.00
3,957,200.00
179,080.00
12,796,376.00
32,282.00
Itili»,000.00
1)0,U à , 500
1,131),200
3,513,200
2 ,007 ,1)35.00
8,991»,000
11 ,100.00
638,000
25.930.3lt0.00
|!»5,7l*l,675.00
i»0.7l»l».600
1131,099,500
, »,
U,OOl,l»35.00
61»9,100.00
66.67l».9l»0.00
1176,81»1,175.00
TREASU RY DEPARTMENT
Information Service
Washington , d .c .
IMMEDIATE RELEASE,
Friday, December 2 9 , 1 9 5 0 »
335
S-2551
The S e c r e t a r y of the T r e a s u r y t o d a y a n n o u n c e d the b r e a k d o w n , by
F e d e r a l R e s e r v e D i s t r i c t s and by classes of investors, of the s p e cial
p u r c h a s e s of Series F and Series G Savings B o n d s d u r i n g the p e r i o d
D e c e m b e r 1 t h r o u g h D e c e m b e r 11, 1950, the last p e r i o d for p u r c h a s i n g
bonds p u r s u a n t to the special o f f e r i n g c o n c e r n i n g w h i c h d e t a i l s w i t h
respect to e l i g i b l e p u r c h a s e r s and am o u n t s wer e r e l e a s e d o n S e p t e m b e r
1 5 . The b o nds p u r c h a s e d this month, t o g e t h e r w i t h those p u r c h a s e d
under the terms of the special o f f e r i n g i n O c t o b e r an d N o v e m b e r ,
totaled $ 2 0 8 m i l l i o n of Series F and $722 m i l l i o n of Series G, or a
total of $930 m i l l i o n of b o t h series.
The d e t a i l s
of the D e c e m b e r p u r c h a s e s are as follows:
Federal Reserve
Di s t r i c t
B o s t o n ............
N ew Y o r k ..........
Philadelphia. . .
C l e v e l a n d ..........
Richmond. . . . .
A t l a n t a ..........
Chicago ..........
St. Louis . . . .
Minneapolis . . .
Kansas C i t y . . .
Dallas. . . . . .
San F r a n c i s c o . .
T r e a s u r y ..........
TOTAL. . . .
Series F
Series
$
$
155,400.00
1 0 , 009 ,3 5 1 .0 0
50 6 ,9 9 2 .5 0
.1 ,7 1 2 ,8 2 2 .5 0
998 , 0 5 6 .50
862,451.50
1 3 ,2 6 2 ,0 0 2 .5 0
3 ,6 7 2 ,9 5 3 .0 0
4,486,213.00
4 ,3 0 2 ,7 3 0 .0 0
5 3 5 ,889.00
5 ,2 3 6 ,8 1 3 .5 0
$45,741,675.00
Classes of Investors
Series F
Insurance c o m p anies
If” 4 , 2 6 7 ,0 6 2 .Ò 0
74,000.00
Savings b a n k s . . .
Savings Sc loa n
a s s o c i a t i o n s Sc b u i l d i n g
Sc l o a n a s s o c i a t i o n s , and
coop e r a t i v e banks
. .
1 7 9 ,080.00
P e n s i o n Sc r e t i r e m e n t funcb 1 2 , 7 9 6 , 3 7 6 . 0 0
Fraternal benefit
associations . .
. .
3 2 ,2 8 2 .0 0
Endowment f u n d s . .
. .
444,000.00
Trusts for charitable,
e ducational, r e l i g i o u s or
other p u b l i c purposes, &
State & m u n i c i p a l sinking
f u n d s ...................... 2 , 0 0 7 , 4 3 5 . 0 0
Credit u n i o n s ............
11,100.00
C o m m e r c i a l Sc i n d u s t r i a l
X'
,
banks. . .................2 5 , 9 3 0 , 3 4 0 . 0 0
T O T A L ..........$ 4 5 ,7 4 1 ,6 7 5 ".00
G
Total
1 0 ,78 9 ,8 0 0
2 6 ,3 3 8 ,3 0 0
6 ,9 0 3 ,0 0 0
7 ,7 2 6 ,0 0 0
1 0 ,2 3 9 .8 0 0
7,704,000
19,717,900
7 ,76 0 ,9 0 0
1 0 ,3 3 2 ,0 0 0
7 ,78 8 ,8 0 0
5 , 19 6 ,0 0 0
1 0 ,4 5 3 ,0 0 0
$1 3
15 0 ,0 0 0
1 ,0 9 9 ,50 0
Series G
$
$
1 0 ,9 4 5 ,2 0 0 .0 0
3 6 ,3 4 7 ,6 5 1 .0 0
7 ,40 9 ,9 9 2 .5 0
9 ,4 3 8 ,8 2 2 .5 0
1 1 ,2 3 7 ,8 5 6 .5 0
8,566,451.50
3 2 ,9 7 9 ,9 0 2 .5 0
1 1 ,4 3 3 ,8 5 3 .0 0
1 4 ,8 1 8 ,2 1 3 .0 0
1 2 ,0 9 1 ,5 3 0 .0 0
5 ,7 3 1 ,8 8 9 .0 0
1 5 ,6 8 9 ,8 1 3 .5 0
1 5 0 ,000 .0 0
$ 1 7 6 ,841,175.00
Total
2 0 ,9 2 7 ,3 0 0 1 2 5 , 1 9 4 , 3 5 2 . 0 0
1 0 ,5 5 0 ,0 0 0
10,624,000.00
4 ,4 5 3 ,7 0 0
40,144,500
4 ,6 3 2 ,7 8 0 .0 0
52,940,876.00
1 ,1 3 4 ,2 0 0
3,513,200
1,166,482.00
3,957,200.00
8,994,000
11,001,435.00
649,100.00
6 38 ,0 0 0
40,744,600
66,674,940.00
$131,099,500 $176,841,175.00
i
dii
; $
EBISASS HORHIHÖ HKWSPAPEBS,
Saturday, December 30* 195>Q<
The Secretary of the Treasury announced last evening that the tenders for
$1,OOO,000,000, or thereabouts, of 91-day Treasury bills to be dated January b and to
mature April 5* 1951# which were offered on December 26, 19|G* were opened at the Federal
Reserve Banks cm December 29*
The details of this issue
Total applied for
Total accepted
Average price
are as
follows«
$1,865*10.0,000
1,002,226,000
(includes $110,100,000 entered on a
non-competitive basis and accepted in
full at the average price shown below)
99.651 Equivalent rate of discount approx* 1*382$ per annum
Range of accepted competitive bidet
* 99.668 Equivalent rate of discount approx. 1.313$ per annum
- 99*650
*
» » *
® 1*385$ * 11
High
Low
(86 percent of the mount bid for at the low price was accepted)
Federal Reserve
District
Boston
Hew fork
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St* Louis
Minneapolis
Kansas City
Dallas
San Francisco
Total
Applied for
Total
Accepted
$
1
7,109*000
1,169,386,000
27,10,000
Ut, 235, ooo
12,609,000
12,519,000
10,295,000
357*873,000
320,353*000
18,627,000
lit,158,000
30,680,000
1»,91*3,000
30,3U*,000
59,813,000
119,951.000
19*191*000
81,650,000
$1,865,110,000
$1 ,002,226,000
l*. 91*3,000
TOTAL
5 , 109,000
l*S2,oi*5,ooo
11,885,000
bo, 7614,000
11,1*89,000
TREASU RY DEPARTMENT
Information Service
WASHINGTON, D .C .
R E L E A S E M O R N I N G N E W S PAPERS,
Saturday, D e c e m b e r 30, 1950.
3,37
S -2 5 5 2
The S e c r e t a r y of the T r e a s u r y a n n o u n c e d last e v e n i n g that the
tenders for $1, 0 0 0 , 0 0 0 , 0 0 0 , or thereabouts, of 9 1 - d a y T r e a s u r y b i lls
to be d a t e d J a n u a r y 4 and to m a t u r e A p r i l 5, 1951, w h i c h wer e o f f e r e d
on D e c e m b e r 26, 1950, were open e d at the F e d e r a l R e s e r v e B a n k s on
D e c e m b e r 29.
The d e t a i l s
of this
issue are as follows:
T o t a l a p p l i e d for - $ 1 , 8 6 5 , 4 1 0 , 0 0 0
Total aocepted
1,002,226,000
Average price
(includes $ 1 1 0 , 1 0 0 , 0 0 0
e n t e r e d on a non**competitive
basis and a c c e p t e d in full
at the av e r a g e price s h o w n
below)
- 9 9 * 6 5 1 E q u i v a l e n t rate of discount, approx,
1 .3 8 1 $ p er a n n u m
R a n g e of a c c e p t e d comp e t i t i v e bids;
99.66 8 E q u i v a l e n t rate of d i s c o u n t approx.
1 .3 13 $ per a n n u m
High
-
io'w
- 9 9 . 6 5 0 E q u i v a l e n t rate of d i s c o u n t approx,
1 .385 $ pe r a n n u m
(86 p e r c e n t of the amou n t bi d for at the low price was accepted)
Federal Reserve
District ;
Boston
New Y o r k
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
S t , Louis
Minneapolis
Kansas C i t y
Dallas
San F r a n c i s c o
TOTAL
T o tal
A p p l i e d for
7 , 10 9 ,0 0 0
T o tal
Accepted
59,813,000
119.951.000
5 , 10 9 ,0 0 0
452.045.000
1 1 ,8 8 5,0 0 0
40.764.000
11.489.000
1 0 .2 9 5 .0 0 0
320.353.000
14.158.000
^,9^3,000
30.344.000
1 9 .1 9 1 .0 0 0
___ 8 1 , 6 5 0 , 0 0 0
$1,865,410,000
$ 1 ,0 0 2 ,2 2 6 ,0 0 0
$
, ,
1 169 886,000
2 7 , 16 5 ,0 0 0
^ , 2 3 5 ,0 0 0
1 2 ,609,000
,
1 2 519,000
357.873.000
18 ,627,000
^,9^3,000
3 0 ,6 8 0 , 0 0 0
0O0
$
@FedFRASER