The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
----,
(Press
"Pe, lects -es
t> •
RfvnNI 5030
JUN
141972
TREASURY DEPARTMENT
Colonel White succeeds Joseph P. Healy, Baltimore industrialist,
bank director and civic leader, and long-time Savings Bonds
volunteer.
Mr. Healy relinquished the Mainland Savings Bonds
chairmanship following his recent appoint as State Bank Commissioner
of Maryland.
%id’Secretaiy^Sqyier today ani&!unced the appointment of Colonel Roy Barren
White, President of the Baltimore and Ohio Railroad, as Chairman of the Treasury
Advisory Committee on Savings Bonds for the State of Maryland*
sreta
"grea
jw'iM
le experiery
rder sj
fe to the ^Saviiiff<r^Sonds
1 eade r shiiu«^w^?olonel
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 business and civic
groups*
Colonel White began railroading as a telegraph operator at Dana, Indiana,
in 1900. His first promotion was to train dispatcher in 1902.
^ ^
In
1926, he was made senior vice president of the Central Railroad of New Jersey,
and later in that year he was elected President of the Road. 3
_.l
"
lll>''
T
%In 1933 Colonel White was made President of Western Union and in 1941^__
he was name<L President of the Baltimore and Ohio Rai 1road•A ^ o 10ne 1 White is >
a director aRd member of the executive committee of the Association of American
Railroads, a director and chairman of the board of the Reading Company and of
the Central Railroad of Hew Jersey. Additional directorships include other
railroads, the Western Union and several insurance companies and banks. He
organized and is chairman of the Locomotive Development Committee.
Colonel White’s home is in Baltimore^ M n i y l w d . He is a member of the
Board of Trustees of the Committee for Economic Development, a member of the
Board of Trustees of Johns Hopkins University, and of the Board of Overseers
of Goucher College.
a**'*-'
“"1
3
RELEASE AFTERNOON NEWSPAPERS,
Wednesday, January 3, 1931.
S-2553
Secretary Snyder today announced the appointment of
Colonel Roy Barton White, President of the Baltimore and Ohio
Railroad, as Chairman of the Treasury Advisory Committee on
Savings Bonds for the State of Maryland.
Colonel White succeeds Joseph P. Healy, Baltimore in-<
dustrialist, bank director and civic leader, and long-time Savings
Bonds volunteer. ' Mr. Healy relinquished the Maryland Savings
Bonds chairmanship following his recent appointment as State Bank
Commissioner of Maryland.
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 business and civic groups.
Colonel White began railroading as a telegraph operator at
Dana, Indiana, in 1900. His first promotion was to train dis
patcher in 19 0 2 . From that period his advance was rapid. In
1926, he was made senior vice president of the Central Railroad
of New Jersey, and later in that year he was elected President
of the Road. In 1933 Colonel White was made President of
Western Union and in 19^1 he was named President of the Baltimore
and Ohio Railroad. He was commissioned a colonel in the
Transportation Corps of the Army on December 28, 1943 .
Colonel White is a director and member of the executive
committee of the Association of American Railroads, a director
and chairman of the board of the Reading Company and of the
Central Railroad of New Jersey. Additional directorships
include other railroads, the Western Union and several insurance
companies and banks. He organized and is chairman of the
Locomotive Development Committee,
Colonel WhiteTs home is in Baltimore. He is a member of the
Board of Trustees of the Committee for Economic Development, a
t*1© Board of Trustees of Johns Hopkins University, and
ot the Board of Overseers of Goucher College.
0O0
<T“
-a™'
t * C J f & k t & \
&
/ ^ ** f
Frank Dow, Commissioner of Customs, today appointed Walter G-.Roy
to the position of Deputy Commissioner .Division of Appraisement Administration,
succeeding Charles Stevenson who is retiring.
Mr.Soy has "been assistant deputy commissioner under Mr.Stevenson.
He has had 22 years service with the Bureau of Customs, all in appraisement work,«
He served as examiner at Baltimore and Pittsburgh,and later as appraiser of
merchandise at Pittsburgh, before transferring to Washington in 1942.
The new Deputy Sommissioner
is 42 years old. He is married and
has two children. The family residence is 1732 Buchanan Street, N.F. .Washington.
****
TREASURY DEPARTMENT
Information Service
IMMEDIATE RELEASE,
Tuesday. January 2, 1951.
Wa s h i n g t o n , d .c .
S-2551)-
Frank Dow, Commissioner of Customs, today
appointed Walter G. Roy to the position of
Deputy Commissioner, Division of Appraisement
Administration, succeeding Charles Stevenson who
is retiring.
Mr. Roy has been assistant deputy commissioner
under Mr. Stevenson. He has had 22 years service
with the Bureau of Customs, all in appraisement
work. He served as examiner at Baltimore and
Pittsburgh, and later as appraiser of merchandise
at Pittsburgh, before transferring to Washington
in 1942.
The new Deputy Commissioner is 42 years old.
He is married and has two children. The family
residence is 1732.Buchanan Street, Northeast,
Washington.
- 3 -
mat
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
hZ
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
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
-
jam
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, 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 1
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 I
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 11, 1951
> in
cash or other immediately avail-B
W
I
able funds or in a like face amount of Treasury bills maturing
January 11. 1951.1
iST"
Cash and exchange tenders will receive equal treatment.
Cash adjustments will heB
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 anyB
special treatment, as such, under the Internal Revenue Code, or laws amendatory I
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 I
all taxation now or hereafter imposed on the principal or interest thereof by
1
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Thursday, January lu l?5l______k
iff”
The Secretary of the Treasury, by this public notice, invites tenders for
ft 1 .000.000,000 , or thereabouts, of
— 1--in exchange for Treasury bills maturing
S0._.-day Treasury bills, for cash and
January 11, 1951--- » to be issued on
a discount basis under competitive and non-competitive bidding as hereinafter
provided.
vrtn mature
The bills of this series will be dated ...JanuarvU., l?jl----- > a« 1
Aoril 12. 1951
, when the face amount will be payable without
■■"* *.. TT'V/ ""
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, January
Tenders will not be received at the Treasury Department, Vfashington.
8, lgjl
Each tender I
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.
1
I
100, with not more than three I
It is urged that tenders
I
be made on the printed forms and forwarded in the special envelopes which will
I
be supplied by Federal Reserve Banks or Branches on application therefor.
I
Others than banking institutions rail not be permitted to submit tenders
except for their own account.
Tenders will be received without deposit from
I
I
incorporated banks and trust companies and from responsible and recognised
I
dealers in investment securities.
I
Tenders from others must be accompanied
by payment of 2 percent of the face amount of Treasury bills applied for,
I
TREASURY DEPARTMENT
Information Service
WASHINGTON, D .G .
8
RELEASE MORNING NEWSPAPERS,
Thursday, January 4, 1951.
S-2555
The Secretary of the Treasury, hy this public notice, invites
tenders for $1,000,000,000, or thereabouts, of 91~da.y Treasury bills,
for cash and in exchange for Treasury bills maturing January 11,
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 11, 1951, and will mature April,12,
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, January o, 1951. 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 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
rom 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 January 11,-19 51 , in cash
or other immediately available funds or in a like amount of Treasury
bills maturing January 11, 195-1* 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 here
under need include in his income tax return only the difference
between the price paid for such bills, whether on orginal 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 Fed.eral Reserve Bank or Branch.
0O0
PROPOSED RELEASE
Thursday, January 4, 1951
Secretary Snyder today announced the appointment of
James J. Ranee, President of Hotpoint, Incorporated, of
Chicago, as a member of the Treasury's Industrial Advisory
Committee for the United States Savings Bonds Program. This
voluntary committee, headed by Martin ¥. Clement, Chairman
of the Board of the Pennsylvania Railroad, counsels with
the Treasury Department on the Payroll Savings Plan and
other Savings Bonds programs. Twenty-seven outstanding
industrialists comprise its membership.
In accepting the appointment, Mr. Ranee told Secretary
Snyder that Hotpoint, Incorporated, was in the midst of
preparations to conduct a person-to-person canvass among
its" 10,000 employees with the objective of reaching as
near to 100 percent participation as possible. ”Due to
the international situation,” he said, ”the vast needs
of our Government can best be carried out when every citizen
shares in an activity directly related to the Ration's
programs. Because of the vitality of the Payroll Savings
activity, and its relation to a stable economy and the
fight against inflation, I am pleased to accept the appoint
ment bef-secretary Snyder as a member of Martin Clement's
Industrial Advisory Committee.”
In his letter of appointment, to Mr. Ranee, Secretary
Snyder said that ”our Savings Bonds Division, in cooperation
with top management, top labor, and volunteer committees, is
now intensively promoting the Payroll Savings Plan among
the employees of business and industry. Overtime pay,
increased employment, and full payrolls in defense industries
make it advisable that we develop this" plan on a very broad
scale as effectively as possible.”
oOo
V
TREASURY DEPARTMENT
WASHINGTON, D.
Information Service
10
IMMEDIATE RELEASE,
Thursday, January 4, 1951.
S-2556
Secretary Snyder today announced the appointment of
James J. Nance, President of Hotpoint, Incorporated, of
Chicago, as a member of the Treasury's Industrial Advisory
Committee for the United States Savings Bonds Program.
This voluntary committee, headed by Martin V. Clement,
Chairman of the Board of the Pennsylvania Railroad, counsels
with the Treasury Department on the Payroll Savings Plan
and other Savings Bonds programs. Twenty-seven outstanding
industrialists comprise its membership.
In accepting the appointment, Mr. Nance told Secretary
Snyder that Hotpoint, Incorporated, was i n ■the midst of
preparations to conduct a person-to-porson canvass among
its 10,000 employees with the objective of reaching as
near to 100 percent participation as possible. "Due to
the international situation," he said, "the vast needs of our
Government can best be carried out when every citizen
shares in an activity directly related to the Nation’s
programs. Because of the vitality of the Payroll Savings
activity, and its relation to a stable economy and the
fight against inflation, I am pleased to accept the appoint
ment by Secretary Snyder as a member of Martin Clement’s
Industrial Advisory Committee."
In his letter of appointment, to Mr. Nance, Secretary
Snyder said that "our Savings Bonds Division, in cooperation
with^top management, top labor, and volunteer committees, is
now intensively promoting the Payroll Savings Plan among
the employees of business and industry. Overtime pay,
increased employment, and full payrolls in defense industries
make it advisable that we develop this plan on a very broad
scale as effectively as possible."
0O0
TREASURY OEPARTMEKT
STATUTORY DEBT LIMITATION
fiscal Service
Washington,
AS OF
O'
Section 21 of Second Liberty Bond Act, es «tended, provides that the face aitourt of ctaiflations issued
under authority of that Act, and the face amount, of dbliiationa huaranteed ;
tinited Statee .(except such guaranteed 6bUdat acre as ray t e k . «
^
*
*
/ * 6 _
*
^
£
*
£
^
n
*
f „ ¿ ^ a n d f a f at
exceed .in the aggregate $275,CCO,COO,COO (Act of June 26, 3.946,
| p *» ^
issued an a discount
a w one time. For purposes of this section the current redemption value of any o b l a t i o n issued on a discount
any one t-if*?. r w y w ^
« +v_
oVaii be considered as its face amount,"
basis which is redeemable prior to maturity at the option of the holder shall be corsic
The following table shows the face amount of obligations outstanding and the face amount which can still
he issued under this limitation;
$275,000,000,000
Total face amount that may be outstanding at any ore time
Outstanding
.
Obligations issued under Second Liberty Bond Act, as amended
Interest-bearing;
Treasury bills ........... - Certificates o f .indebtedness ---
$ 13,626,572,000
5,372,668,000
~ fr7.897.676,8006 66, 896, 916,800
Treasury notes ----------- --Bonds —
Treasury__ _—
--------- -— •—
Savings .(current redemp. value)..,..
Depos itary — --- ---- ---- ------Armed Forces leave — ...— .«... —
Investment series — ------ .................
9^,03^,723,860
58 ,019 .192,90 7
2 9 1 ,590,500
2 2 1 ,257,0 75
953 .030.000
Special Funds —
Certificates of indebtedness.—
15 3 .5 19 .79A .282
1 9 ,228 ,063,000
Tll.-fa.7Q.to6.OOP
Treasury notes ______________— ~
Total interest-bearing-------Matured, interest-ceased ...------------
^7,631,966
2,85^,656
Bearing no interest;
War savings stamps---- ----- — ....
Excess profits tax refund bonds----Special notes of the United States;—
1^20^86.622
256,002,6^3,991
Internat’l Monetary Fund series — Total_____________ ____ *----Guaranteed obligations (not held by Treasury);
Interest-bearing;
Debentures; F,E.A............ ..... m
Demand obligations; C,C.C.---------
20 ,692,936
9 13 .5 13
—
Matured, interest-ceased------ ------------
21,606,M*9
2,127,35023.733.799 256.026.‘377.7S0
.18,973,622.210
Grand total out.standing..------------------------- ------ ’T"““"
Balance face amount of obligations issuable under above authority
Reconcilement with Statement of the Public Debt (Daily Statement of the United States Treasury,
December 3>1 9 1950*
January
2, 1951)•
Outstanding —
Total gross public debt -----------------------Guaranteed obligations not owned by the Treasury.----- ---------*
Total tfroes public debt end tfuarrnteed obligation«
Deduct - other outstanding public debt oblicatxore not subject to debt limitatxon
{y
r
256 ,707,571.189
232.
256,73li36At988
7qfa.,Q27.198256,026,377,790
STATUTORY DEBT L3MITATICN
AS OF December 31, 1950
January
8, 1951
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 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, 1946,* 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 a discount basis which is redeemable
prior to maturity at the option of the holder shall be considered as its face
amount.“
The following table shows the face amount of obligations outstanding and the
face amount which can still be issued under this limitations
Total face amount that may be outstanding at any one time
6275,000,000,000
¡Outstanding
Obligations issued under Second liberty Bond Act, as amended
Interest-bearing:
Treasury bills
..... *$13,626,572,000
Certificates of indebtedness...» 5,372,668,000
Treasury notes............... . 47.897.676.800 $66,896,916,800
Bonds —
T r e a s u r y . 94,034,723,800
Savings (current redemp. value) 58,019,192,907
D e p o s i t a r y . 291,590,500
Armed Forces Leave•••••••••»••
221,257,075
Investment s e r i e s . ....
"
.
.
1
2
953.030.000153.519.794^82
Special Funds —
Certificates of indebtedness.* 19,228,063,000
Treasury notes................ 14.479.406,000 33,707,469,000
Total interest-bearing•••••••*•••««.*•••••• 254,124,180,082
Matured, interest-ceased,. . . 5 5 7 , 9 7 7 , 2 8 7
Bearing no interest:
Yfar savings stamps........... •«.,
47,631,966
Excess profits tax refund bonds.*.
2,854,656
Special notes of tho United States:
Internat11 Monetary Fund series, 1,270*000,000
1.320,486,622
Total........
256,002,643,991
Guaranteed obligations (not held by Treasury):
Interest-be aring:
Debentures: F.H.A.............. . 2 0 , 6 9 2 , 9 3 6
.’ ,v
Demand obligations: C.C.C. ....... _____ 913,513
21,606,449
Matured, interest-ceased**
.............. *;.»*««• ______2,127.350
23 733 799
Grand total o
u
t
s
t
a
n
d
i
n
g
256.026,377,790
¡Balance face amount of obligations issuable under above authority**• 18,973«622.210
Reconcilement with Statement of the Public Debt — December 31, 1950*
(Daily Statement of the United States Treasury, January 2$! 1951)*
¡Outstanding —
Total gross public debt••*,•••..«««•••«*.••««.•......... «......
256,707,571,189
Guaranteed obligations not owned by the Treasury.*... .«
23.733.799
I Total gross public debt and guaranteed obligations*.*........256,731,304,988
Deduct - other outstanding public debt obligations not subject to
debt limitation............................... .
704.927.198
256,026,377,790
p-2557
-
2.
-
The detailed figures, by tariff classifications and by countries, for
I
the fiscal years. 19*4-9, and 1950, will appear in the forthcoming Annual
Report of the Secretary of the T r e a s u r y
^
<7
Selected items from the statistical summary are shown in the following
tables:
Wool and its manufactures replaced agricultural products and provisions
as the leading duty-producing import classification during the^l950 fiscal
year, the Bureau of Customs reported today.
Lu4i&#^
The wool category also showed
If*
the yfnrpiiet percentage gains <yverA 19^9 in "both value and amount of duties
assessed, among 1»to» dm» Iff »«fr specific
classes .
tv» TZ&P
'Sharp gains in both value and estimated duties were shown
e^^Uyj
xXJuadi
foijwooc
;ures. jghemand its manufactures, cotton manufactures, and metals and manufactures^
i
^hemicals, oils and paints declined in value but produced substantially more
revenues as demand apparently shifted to items carrying higher tariff rates.
One significant ^gpfcá®,^¿ssssd was the continued -aL a
J*
increase, both
valueiefape and 41 revenue production, of merchandise free of duty but subject
A
to import taxes. Petroleum is a leading item in this miscellaneous classi
fication.
*
j
A breakaowi^by countries showed Canada leading by a wide margin, both
in value of dutiable goods sold in the United States market/and in amount
t Wfr
of revenues yielded.
fay*'
CoñtltraBdTTec«
yt
teountrres whose economies were
f jyf
hard44fr hit by World War II
with Germany and Japan prominent/*»
/lM
/
4iaewwFy* Yugoslavia was
A
outstanding gainer, with value of its dutiable
goods increasing threefold, and duties paid thereon advancing sixfold over
totals for
19^9 .
Dutiable imports from Russia were down slightly.
‘These
trends were revealed by a Bureau of Customs study of the value of
dutiable imports for consumption and estimated duties and taxes
collected.
The statistics do not include merchandise free of duty and import
taxes, or merchandise imported other than for consumption.
Value
Duty
________Country_______________
Australia....... .............
Tntffl C,nnm~.m n
$1^,78^52
.... ..... . . .. ,
Egypt and Anglo Egyptian Sudan
Union of South Africa.........
Total Africa..................
1 ,791,563
^,781,065
10 ,576,285
1950
Ï 9Ç9"
$22,1 ^8,286
76,08^,36^
100,353,3^9
■8a»336,5-55-
11)1,301 j
OR Q^7jftQP_
2,lK37,210
6,^78,81^
13,061,009
29,^33,3^3
30,228,^70
77,388,552
1950
33,065,286
to,697,*59
97,8to,7to
1
Value of dutiable imports for consumption and estimated duties
collected, for selected countries and major geographical areas
Fiscal Years 19*4-9 a&cL 1950
Value
Duty
Country
19^9~
Canada and Newfoundland....
Cuba...... ................
Mexico............. .......
Netherlands West Indies....
Total North America.......
$ 48,341,939
42,954,587
8,586,356
2 ,870,701
105,683,085
Argentina..... ............
Brazil...... ..............
-Otilombla----- ■—
Uruguay........... Venezuela......... <
Total South America,
1 *4-,070,6*4-5
^,783,280
Belgium......
France........
Germany.......
Italy.........
Netherlands...
Switzerland...
United Kingdom
U.S .S.R......
Yugoslavia....
Total Europe..
Aton-ingnl n ^+ «tnn China.....................
India.......... ........ •••
Japan, Korea, and Formosa..
TillIlM 411
Total Asia................
1950
$
52,034,356
39,652,827
13 ,357,681
6,710,864
114,144,469
15 ,729,860
3,207,489
------ -1,561,774
I 95O
19*49
623,130,590
374,562,798
75 ,769,933
49,235,703
1 ,140,769,134
$
71 ,353,898
46,400,695
°7,053*454-
$ 663,833,490
349,245,666
120,547,740
94,548,957
1,049,177,491
—
76,881,954
35,671,245
34.,,n?/394-i
9,906,645
45,214,923
12 ,852,156
56,951,068
230,037,142
^53,787,583
277,733,951
51a , 315,211
8,713,404
9,082,272
12,644,008
5 ,595,431
14,967,346
2 ,981,500
28,977,656
38,591,093
1,762,046
72,261,455
54,702,161
36,155,044
56,911,414
33,951,742
86,057,539
191,925,985
10,793,095
12,434,548
137,316,523
13,486,715
7,783,099
14,618,238
3,584,940
27,273,376
41,074,720
1,833,877
1,296,848
142,505,576
78,088,109
51 ,886^590
10,070,11*48,156,366
1^,880,398
10,1*4-1,88*46 ,025,221
22,593,*4-3*^
321,007
^ 93.8,10»
58,3^6,858
61,873,877
20,558,734
60,408,133
27,510,030
93,064,391
190,452,801
11,386,517
1,725,679
661,365,839
j;c;rian6..iltf65,018,019
170,188,708
50,318,272
3Qj9Q1j1
*^23,133,986
679,123,753
-gfr93ft«7R1
56,900,581
122,121,W
80,028,966
- 37,783^676381,787,206
Values of dutiable and taxable imports for consumption and estimated duties
and taxes collected by tariff schedules, fiscal years 19^9 and 1950
Estimated duties and
import taxe&L
_______Value_______
1949
"
1950___________ 19*9
1950
1. Chemicals, oils, and paints.... ...............
2. Earths, earthenware, and glassware............
3. Metals and manufactures.......................
k. Wood and manufactures.........................
5. Sugar, molasses and manufactures..............
6. Tobacco and manufactures......................
7 . Agricultural products and provisions..........
8. Spirits, wines, and other beverages...........
9. Cotton manufactures....................... . •••
10. Flax, hemp, jute, and manufactures............
11. Wool and manufactures.........................
12. Silk manufactures.............................
13. Manufactures of rayon or other synthetic
textiles.......... .........................
1 *1-. Pulp, paper, and books........................
15 • Sundries..................... f...............
Free-list commodities taxable under Revenue Act
of 1932 and subsequent acts................
Dutiable under Sec.k66, Tariff Act of 1930, etc--Total
$
1 1 ,1(89,822
16 ,588,323
$
88,707,813
61 ,068,297
51,096,930
1(,602,1(77
3a,533,259
23,955,014
57,214,742
23,499,107
5,914,353
8,062,773
56,696,624
5,878,639
$ 13,443,964
16 ,925,961
57,214,516
6,073,015
35,123,334
21,622,559
59,062,633
24,373,452
7 ,269,312
7 ,581,873
77,803,608
5,763,376
$ 94,999,291
65,236,988
352,524,693
110 ,699,074
353,835,151
77,905,450
556,363,799
87,609,128
24,672,302
164,089,371
226,019,364
22,382,714
3,670,828
2 ,690,149
43,225,580
3,359,688
2,245,099
47,998,982
15,463,498
25,399,930
240,362,754
15,499,418
21 ,894,987
253,866,376
19 ,350,125
1 ,790,665
27,334,416
1,302,311
415,490,807
5,727,333
529,743,267
2,736,528
37^,259,^10
^1 ^,^98,099
2,838,781,6^7
3>063,5if6,578
402,280,410
145,532,967
325,662,164
75,455,117
556,937,234
93,048,335
30,452,324
132,728,010
307,239,690
20,693,641
1 Taxes collected on dutiable commodities under the Revenue Acts and the Sugar Act of 1937 are included in
appropriate schedules.
y
Oö?£ roooH
«osq m o & a
;w
—
ÿ p
qq-pag 42-çxîI ‘Sjjrç
tíosdtnig s$-psi
JeTTS ’JFi
SJQAfH ‘JW
SUOSJBJ «jpç
*jW
qouiCq sßcnoqj; 4
¿IT®2 SSTfil
st?BH 4aw
ra'Bq'öjß
Ü9I0¿
zcmg-jQ^og
«onia
IICLÛ4B9— >
I^g ♦
^•leq.a'Sg 4jyq
¿Ofcijbg -san
zby a number of countries whose economies were hard hit by vtforld vfar II*
with Germany and Japan prominent in the list.
Iugoslavia^-fw«Nfi^p«Prt*<*BMi8
with value of its dutiable goods increasing threefold, and duties
paid thereon advancing sixfold over totals for 19b9«
Dutiable imports from Russia were down slightly.
The detailed figures, by tariff classifications and by countries,
for the fiscal years
19U8, 19U9* and 19 5>0, will appear in the forthcoming
Annual Report of the Secretary of the Treasury for the fiscal year 1950«
Selected items from the statistical summary are shown in the f ^ l o w m g
A
tables
Wool and its manufactures replaced agricultural products and provisions
as"the leading duty-producing import classification during the Government’s
1950 fiscal year, the Bureau of Customs reported today.
The wool category
also showed the highest percentage gains over fiscal 19h9 in both value and
amount of duties assessed among specific classes.
However, several
commodity groups exceeded wool in total value of imports.
These trends were revealed by a Bureau of Customs study of the value
of dutiable imports for consumption and estimated duties and taxes collected*
The statistics do not include merchandise free of duty and import taxes,
or merchandise imported other than for consumption.
Sharp gains in both value and estimated duties were shown for wood and
its manufactures, cotton manufactures, and metals and manufactures.
Imports
of chemicals, oils and paints declined in value but produced substantially
more revenues as demand apparently shifted to items carrying higher tariff
rates.
One significant development was the continued increase, both as to
total value and in revenue production, of merchandise free of duty but
subject to import taxes.
Petroleum is a leading item in this miscellaneous
classification.
A breakdown of import sources by countries showed Canada leading by a
wide margin, both in value of dutiable goods sold in the United States
market and in amount of revenues yielded.
Continued recovery was shown
TREASURY DEPARTMENT
Information Service
WASHINGTON. D .C .
22
IMMEDIATE RELEASE,
Tuesday,January 9 , 1951
S-2558
Wool and its manufactures replaced agricultural products
and provisions as the leading duty-producing import classi
fication during the Government's I95 O fiscal year, the Bureau
of Customs reported today. The wool category also showed the
highest percentage gains over fiscal 1949 in both value and
amount of duties assessed among specific classes. However,
several commodity groups exceeded wool in total value of imports.
These trends were revealed by a Bureau of Customs study of
the value of dutiable imports for consumption and estimated
duties and taxes collected. The statistics do not include
merchandise free of duty and import taxes, or merchandise imported
other than for consumption.
Sharp gains in both value and estimated duties were shown
for wood and its manufactures, cotton manufactures, and metals
and manufactures. Imports of chemicals, oils and paints declined
in value but produced substantially more revenues as demand
apparently shifted to items carrying higher tariff rates.
One significant development was the continued increase, both
as to total value and in revenue production, of merchandise free
of duty but subject to import taxes. Petroleum is a leading item
in this miscellaneous classification.
A breakdown of import sources by countries showed Canada
leading by a wide margin, both in value of dutiable goods sold
in the United States market and in amount of revenues yielded.
Continued recovery was shown by a number of countries whose
economies were hard hit by World War II, with Germany and Japan
prominent in the list. Yugoslavia showed substantial .progress,
with value of its dutiable goods increasing threefold, and duties
paid thereon advancing sixfold over totals for 1949 .
Dutiable imports from Russia were down slightly.
The detailed figures, by tariff classifications and by
countries, for the fiscal years 1948, 1949, and 1950 , will appear
in the forthcoming Annual Report of the Secretary of the Treasury
for the fiscal year 1950 .
Selected items from the statistical summary are shown in the
attached tables.
Attachments
0O0
Value of dutiable imports for consumption and estimated duties collected, for
selected countries and major geographical areas, fiscal years 19^+9 and- 1950
Duty
. Country
Î9Î9-
Value
1950
1949
1950
Canada and Newfoundland.......
Cuba............ ..............
Mexico............ ...........
Netherlands West Indies.......
Total North America...........
$ 48,341,939
42,954,587
8 ,586,356
2 ,870,701
105,683,085
$ 52,034,356
39,652,827
13,357,681
6,710,864
114,144,469
623,130,590
374,562,798
75 ,769,933
49,235,703
1 ,140,769,134
$ 663,833,490
349,245,666
120,547,740
94,548,957
1,249,177,491
Argentina.....................
Brazil....................... .
Uruguay...... ................
Venezuela.....................
Total S outh America...........
14,070,645
4 ,783,280
9,734,012
9,906,645
45,214,923
15 ,729,860
3,207,489
16,836,950
12 ,852,156
56,951,068
71,353,898
46,400,69^
40,061,970
230,037,142
453,787,583
76,881,954
35,671,245
67,843,388
277,733,951
541,315,211
Belgium........... ............
France.... .............
Germany......... ..............
Italy......... .........
Netherlands................ .
Switzerland...................
United *Kingdom.................
U.S.S.R.......................
Yugoslavia....................
Total Europe..............
8,713,404
12,644,008
5,595,431
14,967,346
2,981,500
28,977,656
38,591,093
1,762,046
321,007
137,316,523
9,082,272
13,486,715
7,783,099
14 ,618,238
3,584,940
27,273,376
41 ,074,720
1,833,877
1,296,848
142,505,576
78,088,109
51 ,886,590
20,558,734
60,408,133
27,510,030
72,261,455
54,702,161
36,155,044
56,911,414
33,951,742
86,057,539
191,925,985
10,793,095
12,434,548
679,123,753
China..........................
India.............. ...........
Japan, Korea, and Formosa.... .
Total Asia....................
10 ,070,1 1 ^
8,156,366
1 ^,880,398
170,188,708
50,318,272
58,346,858
10,141,884
6 ,025,221
22,593,434
61,873,877
423,133,986
56,900,581
122,121,448
80,028,966
381,787,206
Australia.............. ......
Egypt and Anglo Egyptian Sudan.
Union of South Africa.........
Total Africa................. .
14,784,452
1,791,563
4,781,065
10,576,285
22,148,286
2,437,210
6,478,814
13,061,009
76,084,364
29,433,343
30,228,470
77,388,552
100,353,349
33,065,286
41,697,459
97,841,741
$
93,064,391
190,452,801
1 1 ,386,517
1,725,679
661,365,839
65,018,019
Values of dutiable and taxable imports for consumption and estimated duties
and taxes collected by tariff schedules, fiscal years 19^9 and 1950
Tariff schedule
Estimated duties and
_____import taxes'*______Value________
____________________ 19^9
1950__________ 191*9
1950
1. Chemicals, oils, and paints.................
2. Earths, earthenware, and glassware..........
3. Metals and manufactures......... ............
4. Wood and manufactures........ ...............
5 . Sugar, molasses and manufactures............
6. Tobacco and manufactures........ ............
7* Agricultural products and provisions........
8. Spirits, wines, and other beverages.........
9 . Cotton manufactures.................. .......
10. Flax, hemp, jute, and manufactures..........
11. Wool and manufactures........ ...............
12. S ilk manufactures...... .....................
13 . Manufactures of rayon or other synthetic
textiles.................................
Ik. Pulp, paper, and books.......................
15 • Sundries............ ........................
Free-list commodities taxable under Revenue Act
of 1932 and subsequent acts..............
Dutiable under Sec.1*66, Tariff Act of 1930, etc..
Total
$
1 1 ,14-89,822
16 ,588,323
51 ,096,930
1*,602,1*77
38,533,259
23,955,011*
57,214,71*2
23,499,107
88,797,813
61 ,068,297
1*02,280,1*10
145 ,532,967
325,662,161*
75,455,117
556,937,234
5,914,353
8,062,773
56,696,62145,878,639
$ 13,443,964
16 ,925,961
57,214,516
6 ,073,015
35,123,334
21,622,559
59,062,633
24,373,452
7 ,269,312
7 ,581,873
77 ,803,608
5,763,376
3,670,828
2,690,11^9
43,225,580
3,359,688
2 ,245,099
47,998,982
15 ,463,498
25,399,930
240,362,754
15,499,418
21 ,89I*,987
253,866,376
19,350,125
1 ,790,665
27,334,416
1,302,311
1*15 ,1*90,807
5 ,727,333
529,743,267
2 ,736,528
$94,999,291
65,236,988
352,524,693
110,699,07^
353,835,151
77,905,450
556,363,799
87,609,128
214-,672,302
1614,089,371
226,019,361422,382,7114-
$
93,048,335
30,452,324
132,728,010
307,239,690
20,693,61*1
,
37^,259,^10 $ klk **98,099 $2,838,781,6^7 $3,063,5^6,578
1 Taxes collected on dutiable commodities under the revenue acts
and the Sugar Act of 1937 are included in
appropriate schedules.
VJ
uuasb
x
w m im m m fâ m m §
y~ f
s“
jmmxy 9» W$l*
fha sanrataxy < g the f m m w y w m m m è â '% m % «waning that tha tentara far
of 9 1 « é a & Treasury M X X » ta h® áat®d S m s m r y 11» «uà
$1,000*000*000» or
% vero op@md at tho ftelerai
to aainre Aioli 11» X9$X¿ wMeh raro offset on
Eaaarfw ¿santca on January o*
-u*. eafc-m».
¿»1tate i jA a
ai^JM k
*£
fhi aefeM-i# of this lean® ara aa follaras
Total applied Tor - $M$5»166*0Q0
Total accepted
- 1,000,019,000 (includo* 6160,562,000 entered on »
noo-ceBpatiilta tasi« wad accepted in
Tull at tee average price ah«» belo»)
Average price
- 99.669/ Kqulralont rota of discount approx. 1*3975per Oral
Bango of accepted competitive bids:
W ¡0
» 9 9 » 6 J 0 Equivalent rata of discount approx. 1.3055 per annua
- M
Urn
*
*
«
•
»
1.3965 »
(5 percent of tee aaount Wd for at tta 1er prim m a accepted)
faâaral 1««arra
District
fatal
Total
I
Philadelphia
GJ^vuAadi
Richmond
Atlanta
China®®
St* í¿uia
Minneapolis
M i City
i 25,275,000
1,196,226,000
29,695,000
$ % v% m
9 ,m ,o m
19,998,000
167,212,000
26,000,000
6,073,000
29,966,000
53,993,000
53,313,«30
61,653,766,000
61, 000, 019,000
$¡¡0t f v u m t m o
TOSAI
(
J
25,275,009
592*026,000
li^SW, 000
39.779.000
9.656.000
16.996.000
137,262,900
23.906.000
6.073.000
29.966.000
53.993.000
68.363.000
•
26
md I release morning newspapers,
m l
S-2559
|Tuesday t January 9, 1951.
’
The Secretary of the Treasury announced last evening that the
■tenders for $1,000,000,000, or thereabouts, of 91-day Treasury bills
■to be dated January 11, and to mature April 12,1951, which were
■offered on January 4, were opened at the Federal Reserve Banks on
I January 8.
fti&H&I
qpiipa[I
• if
The details of this issue are as follows:
Total applied for - $1,653,764,000
, ,
Total accepted
- 1,000,019,000 (includes $140,562,000
entered on a non-competitive
basis and accepted in full
at the average price shown
below)
- 99.649/ Equivalent rate of discount approx
Average price
1 .387# per annum
Range of accepted competitive bids:
- 99.670 Equivalent rate of discount approx.
1 .305$ per annum
- 99.647 Equivalent rate of discount approx.
1 .396$ per annum
High
Low
(5 percent of the amount bid for at the low price was accepted)
Federal Reserve
District
$
Boston
Hew York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
25 ,275,000
1 ,196 ,226,000
29,695,000
39 ,779,000
9 ,454,000
18 ,998,000
167 ,212,000
24,000,000
6 ,073,000
29,946,000
53 ,993,000
53,113,000
TOTAL
Total
Accepted
Total
Applied for
$1,653,764,000
0O0
$
25 ,275.000
592 ,026,000
14 ,945,000
39 ,779,000
9,454,000
18 ,998,000
13 7 ,262,000
23,905,000
6 ,073,000
29,946,000
53 ,993,000
48 ,363,000
$ 1 ,000,019,000
Mr« Schoeneman also reminded taxpayers that if, after the income
tax return for 1950 has been filed, it is discovered that a taxpayer
has underestimated his tax, by more than 20 percent (or 33-1/3 percent
in the case of farmers), a penalty may be imposed.
Under the provi
sions of a law just signed by the President, however, this penalty
will not be imposed if the excessive underestimate results solely
from the increase in normal tax and surtax imposed on individuals by
the Revenue Act of 1950
TREASURY DEPARTMENT
Information Servioe
Washington, D, C,
IMMEDIATE RELEASE
(Date)
S~
George J, Schoeneman, Commissioner of Internal Revenue, reminded
individual income taxpayers who filed a Declaration of Estimated Tax
for 1950 in order to pay thisir estimated 1950 tax by installments,
that January 15, 1951 is the final date for amending the Declaration
so that an increased installment may be paid on or before that date
to take care of any underestimate in tax that may have been made for
the tax year 1950*
Any increase in tax not paid by that date must
be paid in full when the taxpayer files his income tax return.
If, however, a taxpayer who would otherwise be required to file
an original or amended Declaration of Estimated Tax by January 15,
1951, files his annual income tax return for 1950 (on Form 1040) and
nays all tax due by January 15, his return will serve as both a re
turn and declaration and he need not file the 1950 declaration or
pay the final installment for which he might be billed by his collector.
Farmers who expected to receive two-thirds of their gross income
for 1950 from farming were permitted to wait until January 15, 1951 to
file their declarations.
They will be required, however, to pay the
entire balance of estimated tax in a lump sum at that time, unless they
file their tax returns on or before January 31 and pay the total tax
at that time, in which event they need not file a declaration.
TREASURY DEPARTMENT
Information Service
WASHINGTON, D.
29
IMMEDIATE RELEASE,
Tuesday, January 9, 1951
S -2560
George J. Schoeneman, Commissioner of Internal Revenue,
reminded individual income taxpayers who filed a Declaration
of Estimated Tax for 195,0 in order to pay their estimated
1950 tax by installments, that January 15, 1951 is the final
date for amending the Declaration so that an increased in
stallment may be paid on or before that date to take care
of any underestimate in tax that may have been made for the
tax year 1950. Any increase in tax not paid by that date
must be paid in full when the taxpayer files his income tax
return.
If, however, a taxpayer who would otherwise be required
to file an original or amended Declaration of Estimated Tax
by January 15, 1951, files his annual income tax return for
1950 (on Form 1040) and pays all tax due by January 15, his
return .will serve as both a return and declaration and he
need not file the 1950 declaration or pay the final installment
for which he might be billed by his collector.
Farmers who expected to receive two-thirds of their gross
income for 1950 from farming were permitted to wait until
January 1 5 , 1951 to file their declarations. They will be
required, however, to pay the entire balance of estimated tax
in a lump sum at that time, unless they file their tax
returns on or before January 31 and pay the total tax at
that time, in which event they need not file a declaration.
Mr. Schoeneman also reminded taxpayers that if, after
the Income tax return for I950 has been filed, it is dis
covered that a taxpayer has underestimated his tax by more
than 20 percent (or 33-1/3 percent in the case of farmers),
a penalty may be imposed. Under the provisions of a law
just signed by the President, however, this penalty will not
be imposed if the excessive underestimate results solely from
the increase in normal tax and surtax imposed on individuals
by the Revenue Act of 1950.
0O0
- 3 -
tiSBk
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
hZ
and 1 1 7 "(a) (1) of the Internal Revenue Code,
as amended by Section 11$ of the Revenue Act of 19Ul, the amount of discount at
vfhich 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
-
mm
unless the tenders are accompanied by an express guaranty of payment by an in
corporated bank or trust company.
Immediately after the closing hour, tenders will be opened at the Federal
Reserve Banks and Branches, following which public announcement will be made by
the Secretary of the Treasury of the amount and price range of accepted bids.
Those submitting tenders will be advised of the acceptance or rejection thereof. I
The Secretary of the Treasury expressly reserves the right to accept or reject
I
any or all tenders, in whole or in part, and his action in any such respect shall I
be final.
Subject to those reservations, non-competitive tenders for .,200,000
I
or less without stated price from any one bidder will be accepted in full at the I
average price (in three decimals) of accepted competitive bids.
Settlement for I
accepted tenders in accordance with the bids must be made or completed at the
Federal Reserve Bank on
JanuarylS, 19gl
I
in cash or other ^mediately avail I
able funds or in a like face amount of Treasury bills maturing
Cash and exchange tenders will receive equal treatment.
JaBuaryol8? lj|l I
Cash adjustments m i l 1 1
made for differences between the par value of maturing bills accepted in exchans I
and the issue price of the new bills.
The income derived from Treasury bills, whether interest or gain from t
sale or other disposition of the bills, shall not have any exemption, as such,
I
|
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 there
m
m
m
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Thursday, -----January
11, 1951
•
--------------^
!
^
The Secretary of the Treasury, by this public notice, invites tenders for
$ l fOOQ
QfQQQ , or thereabouts, of
91
-day Treasury bills, for cash and
in exchange for Treasury bills maturing
January 18« 1951
, i° be issued on
jBtX.
a discount basis under competitive and non-competitive bidding as hereinafter
provided.
will mature
interest.
The bills of this series will be dated
April 19, 1951
~
January^l8> 1951
, anci
, when the face amount will be payable without
They will be issued in bearer form only, and in denominations of
$1,000, $5,000, $10,000, $100,000, $500,000, and $1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the
closing hour, two o ’clock p.m., Eastern Standard time, Monday. January IS', 1951.
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 v/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 Treasury bills applied for,
TREASURY DEPARTMENT
Information Service
REKASE MORNING NEWSPAPERS,
Thursday, January 11, 1951»
WASHINGTON, D.
S-2561
The Secretary of the Treasury, by this public notice, invites
tenders for $1,000,000,000, or thereabouts, of 91-day Treasury bills,
for cash and in exchange for Treasury bills maturing January 18, 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 18, 1951, and will mature April 19 ,19 51 ,
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, January 15, 1951. 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 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
2
three decimals) of accepted competitive bids. Settlement for
accepted tenders in accordance with the bids must be made or com
pleted at the Federal Reserve Bank on January 18, 1951 > in cash or
other immediately available funds or in a like face amount of
Treasury bills maturing January 18, 1951. 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 ^2 and 117 (a) (!) of the Internal Revenue
Code, as amended by Section 115 of the Revenue Act of 19*fl> the
amount of discount at which bills issued hereunder are sold shall
not be considered to accrue until such bills shall be sold, redeemed
or otherwise disposed of, and such bills are excluded from consid
eration as capital assets. Accordingly, the owner of Treasury bills
(other than life insurance companies) issued hereunder need include
in his income tax return only the difference between the price paid
for such bills, whether on original issue or on subsequent purchase,
and the amount actually received either upon sale or redemption at
maturity during the taxable year.for which the return is made, as
ordinary gain or loss.
Treasury Department Circular No. *H8 , 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
y
c\ tfSN«® /
jc1
?>r-£'*
IMMEDIATE RELEASE
January ~16t 19^1
7/
t.
The Bureau of Customs announced today preliminary figures ¡show
ing the imports for consumption of commodities on which quotas ^ r e
prescribe?by the Philippine Trade Act of 19U6, from January 1, 1950,
to December 30, 1950, inclusive, as follows:
products of the
Philippines
4
•
:
5
Buttons ..........
Established Quota
Quantity
8^0,000
•
s
*•
Unit of
Quantity
7U3,303
t
793,558
200,000,000
Number
Coconut oil
UU8,000,000
Pound
Sugars
Tobacco *. •....... •
imports as of
December 30, !
Gross
Cigars ............
Cordage ...........
s
:
133,310,303
6,000,000
n
U,Ul5,9l*2
i,oUo,ooo
t!
217
1,90U,000,000
Pound
6,500,000
Pound
923,910,937
U5l,W5
35
TREASURY DEPARTMENT
Washington
IMMEDIATE RELEASE
Thursday..January 11. 1951
S-2562
The Bureau of Customs announced today preliminary figures shovdng the
imports for consumption of commodities on which quotas were prescribed by
the Philippine Trade Act of 1946, from January 1, 1950, to December 30, 1950,
inclusive, as follows:
•
Products of the
.Philippines
t
*•
.•
•
Established Quota
Quantity
•
Bit uOnS
•
•
•
♦
•
Unit of
Quantity
Gross
743,303
793,558
ClgarS oo'iininai'oao
200,000,000
Numbe r
Coconut oil
443,000,000
Pound
Cordage
ill. C S
&
O ' i & y o o o
* o & &
o a
&
o
o
000000 9 n o 0 0 0 0 0
(refined
133,310,303
6,000,000
ii
4,4X5,942
1 ,040,000
it
217
O O o 0 a 9 9 9 0 0 0 0 0 0 0 0 .9 0 0 0
Sugars
1,904,000,000
(unrefined
fOOaCCO
Imports as of
December 30, 1950
•
•
:
850,000
:
:
Pound
0 0 o 9 0 0 9 0 0 0 0 0 0 0 0 0 9 0
o o o o o o o o a o a
6,500,000
923,910,937
Pound
451,475
-#«ii
tS
'V*'*“<
w
^F©£-IMMEDIATE RELEASE,
January t#, 195l
.. ‘"
1 ii
V
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, I9ll, as modified by the President's proclamation of April 13, I9l2,
for the 12 months commencing May 29, 19 5Q> as follows:
Wheat
Country
of
Origin
Imports
Established s
Quota
sMay 29, 19 5$ to
«Dec. 30, 19S0
(Bushels)
(Bushels)
795,000
Canada
China
Hungary
Hong Kong
- Japan
100
United Kingdom
—
Australia
100
Germany
*100
Syria
New Zealand
Chile
100
Netherlands
2,000
Argentina
100
Italy
Cuba
1,000
France
Greece
100
Mexico
Panama
Uruguay
Poland and Danzig
Sweden
Yugoslavia
Norway
*
Canary Islands
1,000
Rumania
100
Guatemala
100
Brazil
Union of Soviet
Socialist Republics
100
100
Belgium
80U.U0U
795,000
—
—
—
—
—
—
M
mm
mm
mm
mm
mm
-
|
—
-
Wheat flour, semolina;,
crushed or cracked
wheat, and similar
wheat products
Established •
Imports
Quota
s May 29, 1$50,
•
•
to pee. 30, 15
(Pounds)
(Pounds)
3 ,815,000
21,000
13,000
13,000
8,000
75,000
1,000
5,000
5 ,ooo
1,000
1,000
1,000
11,000
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
9,10.5
—
—
—
. —
—
—
-
-
—
2,295
ii09
-
-
-
-
-
-
--
Be
- 79^,000
1 ,000,000
3,827,119""
37
TREASURY DEPARTMENT
Washington
IMMEDIATE RELEASE,
Thursday, January 11, 1951
S-2563
The Bureau of Customs announced today preliminary figures showing the
quantities of wheat and wheat flour entered, or withdrawn from warehouse, for
consumption under the import quotas established in the President’s proclamation
of May 28, 1941, as modified by the President’s proclamation of April 13, 1942,
for the 12 months commencing May 29, 1950, as follows:
•
•
0
0
Wheat flour, semolina,
crushed or cracked
wheat, and similar
:
s
0
wheat products
0
:
0
Impo rts
0 Established g Imports
: Established :
Quota
: May 29, 1950,to
:
Quota
: May 29, 1950, to
0
: Dec* 30, 1950
è
:
: Dec« 30, 1950
(Pounds)
(Pounds)
(Bushels)
(Bushels)
0
Country
of
Origin
Wheat
795,000
Canada
».
China
Hungary
Hong Kong
Japan
100
United Kingdom
Australia
100
Germany
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
800,000
795, 000
».
«
m
«
MA
-
'mi
—
—
**
».
''».
«
».
M.
tmàf
**
».
m»
795,000
3,815,000
24,000
13,000
13,000
8,000
75,000
1,000
5,000
5,000
1,000
1,000
1,000
14,000
2,000
12,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
3,815,000
9,415
**
—
2,295
409
—
—
«*
—
—
».
—
—
*»
».
»,
•—
<n>
w
»»
<**»
».
--
4,000,000
3,827,119
MEDIATE RELEASE
.y'M
January "3X1, 195^
JfK <****»/
mi £) ^
Ctm»i
k.
The Bureau of Customs announced today preliminary fipres shomng
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 30, 1950, inclusive, as folio s:
Commodity
Unit
Period and Quantity
of
Quantity
Imports as of
December 30,
1950
"Whole milk, fresh or
sour .............
Calendar year
3,000,000
Gallon
11,959
Cream, fresh or sour
Calendar year
1 ,500,000 Gallon
1,206
Butter .............
Nov. 1, 1950Mar. 31* 1951
pish, fresh or frozen,
filleted, etc., cod,
haddock, hake, pollock,
cusk, and rosefish .... Calendar year
White or Irish potatoes:
certified seed ....... 12 months from
other ................. Sept. 15) 195>0
Walnuts ......... *.....
Calendar year
5,5o5
50,000,000
Pound
26,235,738
Pound
Quota filled
150,000,000
60,000,000
Pound
Pound
U7,711,1(50
U5,U75,095
5 ,000,000
Pound
Quota filled
39
TREASURY DEPARTMENT
Washington
immediate release,
Thursday, January 11, 1951
S-2564
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 t6 December 30, 1950, inclusive, as followsj
Commodity
Period and Quantity
Unit
of
<Quantity
Imports as of
December 30,
1950
Whole milk, fresh or
sour •••*••*«•«•*•••*•<;>
Calendar year
3,000,000 Gallon
11,959
Cream, fresh or sour0*o«
Calendar year
1 ,500,000 Gallon
1,206
Butter
Nov* 1, 1950*”
Mar« 31, 1951
50,000,000
Pound
Fish, fresh or frozen,
filleted, etc*, cod,
haddock, hake, pollock,
cusk, and rosefish««.*
Calendar year
26 s 235,738
Pound
White or Irish Potatoes:
certified seed*••«<> *•*
other **»•«•••••0*•*•••
12 months from 150,000,000
Sept* 15,1950 60,000,000
Pound
Pound
Walnuts •oo**#»»**«*»«**»
Calendar year
Pound
5*000,000
5,505
Quota filled
47,711,450
45,475,095
Quota filled
2
COTTON WASTES
(In pounds)
COTTON CARD STRIPS made from cotton having a staple of less than 1-3/16 inches in le^ S ^ , COMBER
WASTE LAP WASTE, SLIVER WASTE, AMD 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
m°re
in staple length in the case of the following countries: United Kingdom, France, Netherlands,
Switzerland, Belgium, Germany, and Italy:
Country of Origin
• Established
: TOTAL QUOTA
United Kingdom ........
rianflrla _
..............
British I n d i a ....... ..
Netherlands ............
Switzerland ............
De 1 erinm .................
.Tardan ..................
T
?.cnrr»+. .................
........................
finV^a .... .
UAi*n3ntr ................
Italy
Imports
1/
: Total imports
: Established :
:
Sept.
20,
iy$Q
33-1/356 of
: Sept. 20, 1950, to s
to pec. 30, 195.0-: Dec. 30, 1950
: Total Quota
I
1 ,441,152
i,U)ii,i52
75,807
63,125
22,747
14,796
12,853
—
1,851*
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
i,Uia,i52
107,191
63,125
39,283
2U,l?6
25,443
7,088
2U,i 56
-
5,482,509
1,676.761
1.599;886
1,530,287
1/ Included in total imports, column 2.
Prepared by the Bureau of Customs
l,8SU
-
-
-
-
IREWiLHVa®! ¿Ha'SV3H£
COTTON (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 30, 1950, Incl.
Country of Origin
Imports
Established Quota
Egypt and the AngloEgyptian 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
¡il,78U
—
—
Quota Füled
475,124
5,203
237
9,333
-
—
328,107
Country of Origin
Established Quota
Honduras ..............
Paraguay
...
Colombia ...........
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
2,240
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.
¿/ Other than Algeria, Tunisia, and Madagascar.
Cotton, harsh or rough, of less than 3A * 1
Imports Sept. 20, 1950, to December 30, 1950
Established Quota (Global)
Imports
70,000,000
4,033,573
Cotton, harsh or rough (except cotton of perished
staple, grabbots and cotton pickings) of
1-3/16« or more but less than 1-3/8«
Imports Oct. 9, 1950, to December 30, 1950
Established Quota (Global)
Imports
1 , 500,000
221, 68$
Cotton 1-1/8» or more, but less than 1-11/16»
Inports Feb. 1, 1950, to December 30, 1950
Established Quota (Global)
Imports
45,656,420
Quota Filled
Cotton 1-3/8”, but less than 1-11/16**
Imports Oct. 12, 1950, to December 30, 1950
Established Quota (Global)
Imports
7,500,000
7,058,155
Imports
-
—
-
—
—
TREASURY DEPARTMENT
Washington
■ ' • . ^. . . ...^
IMMEDIATE RELEASE
Thursday, January II, 1953-
S—2 56 5
Preliminary data on.imports for consumption of cotton and cotton waste chargeable to the quotas
established by thé Présidentes Proclamation of September 5* 193Q, as amended
COTTON (other than linters) (in pounds)
-Cotton under 1 -1/8 inches other than harsh- ox rough under 3/tyn
Imports Sept. :20y 1950» to December 30, 19130* Ihcl.
Country of Origin
Established Quota
Egypt and the AngloEgyptian Sudan....;. •
P GI*11 ••••••##••*•
British India ....... .
C h i n a .... . *.... ....» '
Mexico ........
Union of Soviet
Socialist Republics
Argentina.... .
Haiti ....... .....
Ecuador .............
Imports
783,816
2>+7.952
. Ul,JZk
^ 75,12^.
5,20^
231
9,333
■ -■
2 ,003,1*33
1 ,370,7 9 1 -8,883,259
Quota Pilled
61s,723. ;
328,107
Country of .Origin
Honduras ../.......... *
752
p£tI*SI^Xl5ty* • « •••*
•w#.
871
Colombia .. ...... *•>.»....
12k
:
Iraq .......... ....... v •
I95
British East Africa .... .
2,2U 0
Netherlands E. Indiea ..
71*388
Barbados ..............; . ’
V
l/Other British ¥. Indies
21 ,321 . .
* 5*377.
v
2/0ther British W* Africa • •• * l6,00ii¿/Other French Africa ....
-. 689
#
‘
m W ,^ ’
Algeria and Tunisia
l/ #iher than Barbados, Bermuda, Jamaica, Trinidad, and TobagoOther than Cold Coast and Nigeria.
¿/ Other than Algeria, Tunisia, and Madagascar.
Zf
Established Quota
’
'
Imports
«ft
—
.
—
~
—
—
. ,
•*•- . .,;
......
Cotton, harsh-.or rough, of less than 3 /Un
Imports Septv 20, 1950, to December 30, 1950
Established Quota (Global)
Imports70,000,000H,033,573
Cotton l-l/$,r or more, but less than l-ll/l6Tt
Imports Feb. 1, 1950, to December 30* 1050
Established Quota (Clobal)
Imports
^5,656;H20
Quota Pilled
Cotton, harsh or rough (except cotton of perished
staple, grabbots and cotton pickings) of
l-3/l6,f or more but less than 1-3/8”
Imports Oct- 9 , 1950, to December 30, 1950
Established Quota (Global)
Imports
1 ,500,000
221,685
Cotton 1-5/8*, but less than l-ll/l6n . .~
Imports Oct* 12, 1950, to December 30, 1^50
Established Quota (Global) •
Imports
7 ,500,000
7*058,155
^
ro
2
COTTON WASTES
(In pounds)
-
^
COTTON CARD STRIPS made from cotton h»ving a staple of less than I-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 I-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 QUOTA-
^, 323,^57
United Kingdom •.. •.• ...
Canada * ..... ..........
Franco « • ..... .
British India ... • ¿
.
Hasher lands
SfVfttzerland
.> .. *
• * •« » t«• # $ •
239.690
227,U 20
69.627
68,2*+0
UU,38S*
•#
Japan
China #•»««•••»«•• »•«•*# *
Egypt . » . . ....... .
Cuba •#•••#••♦••«»•••«*
Germany . . . . . .... .
11 aly •»».»«»•*••*•»»••
? Total imports-; \
: Sept.' 20, 195O, 1°
:■ Dec. 30, 1950
i
• •
• ^
Imports
Established •
33-1/3$ Of : Sept. 20, 195O
..Total Quota : to Dec. 30, I95O
-
-
75,807
63,125
-
-
"39,283
76.329
21,263
2^,156
5.^82,509
1 ,676,761
m
r .
—
-»■
....
22,71+7
1^,796
r,sÿ*
12,853
- -
-■
'
'
—
1/
l,UHl,152
1 , ^ 1,152
107,191
63,125
1 .85^
Prepared by the Bureau of Customs
•
l,HUl,152
38,559'
3^ 1.535
17*322
8,135
6 ,51+U
1/ Included in total imports, column 2«
:
'.* .' 'mL .
..
....
..
- ;:
' *,
25.^3
2U,I56
7,088
:■■ -
1,599,886
1,530.287
’
.
•
V
January
$$
1951
TO MR. BAHTREft
Tb« following transactions war« »ad® in direct and guaranteed
securities of the Government for Treasury investment and other
accounts during the month of 0i6®hif> IrPwf
Purchases
. * * * . * .
*5T,23k#000
Sales i * ♦ * . ♦ * * * * * * * * » • *
Met purchases , » ♦ » • • • • ♦ * * *
$ ^f9S6fltOO
(Sgd.) E« 0. Barnes
Chief* Division of Investments
Wisecarver
1/5/51
TREASURY DEPARTMENT
Information Service
Wa s h i n g t o n , d .c .
RELEASE MORNING NEWSPAPERS,
S-2537
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 *$10,6957 000s Secretary
Snyder announced today.
0O0
treasury
d epartm ent
Information Service
Wa s h i n g t o n , d .c .
RELEASE MORNING NEWSPAPERS,
Monday, January 1 5 , 1951.
S -2566
During the month of December
1950 , market transactions in direct
and guaranteed securities of the
Government for Treasury investment
and other accounts resulted in net
purchases of $6,956,400, Secretary
Snyder announced today.
0O0
Ig
- 2 -
after enactment of the Excess Profits Tax Act of 1950.**
the Commissioner concluded his statement:
"Faced with the problem
of analysing the Excess Profits Tax Act* resolving it into forms*
schedules* and instructions* and getting them into the hands of taxpayers
in time for them to meet the requirements of the Act is no small task.
Much of the needed material is now available and every effort is being
made to expedite the development* printing and distribution of the
balance•
• 0 «
T8MS0RT DEPARfMEM?
Bureau of Internal Revenue
Washington, B. 0«
IMMEDIATE RELEASE
January 12, 1951
(Date)
Commissioner of Internal Revenue Geo* J • Schoeneman issued a state»
ment today directed to those corporations which had filed income tax
returns for a taxable year ending after dune SO, 1950, and before
December 51, 1960, prior to the date of the enactment of the Excess
Profits fax Act of 1950 (January 3, 1961).
the Commissioner wanted it
clearly understood that no return of a corporation subject to excess
profits tax for such taxable year with respect to any tax imposed by
Chapter I of the Internal Revenue Code filed on or before the effective
date of this Act shall be considered for any such purposes as a return
for such year.
In other words, unless a corporation is specifically
exempt under Section 484 of the Code from the excess profits tax, that
corporation will be required to file, with the same collector, another
income tax return for the same taxable year.
Commissioner Schoeneman said, "If the items of gross income and
deductions reported on the return to be filed after January 5,
1981,
are identical in amounts with those reported on the return filed prior
to that date, and if the first return was adequately supported by
detailed schedules, the Bureau of Internal Revenue will offer no objection
if the taxpayer attaches to the new return a statement incorporating by
reference the schedule or schedules attached to the return previously
filed.
Any payments made on account of tax liability reported on the
return filed on or before enactment of the Excess Profits fax Act of 1950
will be applied to the assessment made on the basis of the return filed
- 2 -
after enactment of the Excess Profits Tax Aot of 1950.
The Commissioner ... .
A
jjjp a n a l y s i s
"'1|11'1 1 lT11
ft
,
^
.ii,.r
*
t
-
the Excess Profits Tax Act, resolvjl^.it into forms,
schedules, and instructions, and get-Mag them into the hands of taxpayers
Much
“■’ll®
~ 0 ~
^ -- ^
TREASURY DEPARTMENT
Bureau of Internal Revenue
Washington, D. C.
IMMEDIATE RELEASE
a
:
January 12, 1951____ (Date)
Commissioner of Internal Revenue Geo* J« Schoeneman issued a state-
i»»i<vm»i8rimiiA -hhft-fc no return of~a--eer"poration Subject to excess
profit»-tax-fer such-ta:
year with respect to any tax imposed by
Chapter I of th« -
enne Gode filed on or before the effective
\
date of this Act shall be con
for such year*
ered for any such purposes as a return
In other words* unless^a corporation is specifically
corporation will be required to file, with the same collector, another
income tax return for the same taxable year«
Commissioner Schoeneman said^ wIf the items of gross income and
deductions reported on the return to be filed after January 3, 1951,
are identical in amounts with those reported on the return filed prior
to that date, and if the first return was adequately supported by
detailed schedules, the Bureau of Internal Revenue will offer no objection
if the taxpayer attaches to the new return a statement incorporating by
reference the schedule or schedules attached to the return previously
filed«
Any payments made on account of tax liability reported on the
return filed on or before enactment of the Excess Profits Tax Act of 1950
will be applied to the assessment made on the basis of the return filed
TREASURY DEPARTMENT
WASHINGTON. D .C
Information Service
IMMEDIATE RELEASE,
Friday. January 12, 1951.
S -2567
Commissioner of Internal Revenue George J. Schoeneman
issued a statement today directed to those corporations
which, prior to the date of the enactment of the Excess
Profits Tax Act of 1950 (January 3, 1951), had .filed income
tax returns for a taxable year ending after June 30, 1950,
and before December 31, 1950.
The Commissioner stated unless such a corporation is
specifically exempt from the excess profits tax under
Section 454 of the Code, that corporation will be required
to file, with the same collector, another income tax return
for the same taxable year.
Commissioner Schoeneman said:
"If the items of gross
income and deductions reported on the return to be filed
after January 3, 1951, are identical in amounts with those
reported on the return filed prior to that date, and if the
first return was adequately supported by detailed schedules,
the Bureau of Internal Revenue will offer no objection If the
taxpayer attaches to the new return a statement incorporating
by reference the schedule or schedules attached to the return
previously filed. Any payments made on account of tax
liability reported on the return filed on or before enactment
of the Excess Profits Tax Act of 1950 will be applied to the
assessment made on the basis of the return filed after enact
ment of the Excess Profits Tax Act of 1950."
The Commissioner added that the Bureau is proceeding
as speedily as possible to analyze the Excess Profits Tax
Act, resolve it into forms, schedules, and instructions, and
get them into the hands of taxpayers.
0O0
</ 5
It was announced today by the Bureau of Customs that the tariffrate quota for the calendar year 1951 on fish, fresh or frozen (whether
or not packed in ice), filleted, skinned, boned, sliced, or divided
into portions, not specially provided for: cod, haddock, hake, pol
lock, cusk,and rosefish, is 29,239,808 pounds.
The anmial quota is the quantity entitled to be entered for
consumption in the United States at the rate of 1—7/8 cents per
pound. The quota is l5 per centum of the average aggregate apparent
annual consumption of such fish during the three calendar years mamediately preceding the year for which the quota is established, or
15,000,000 pounds, whichever quantity is greater.
The apparent consumption is the sum of
(a)
The production in the United States of fresh
and frozen fillets, steaks, and sticks of the
named fish as reported by the U. S. Fish and
Wildlife Servicej
(b)
The quantity of such fillets, steaks, and
sticks entered into the United states free of
duty as products of American fisheries under
paragraph 1730(a) of the Tariff Act of 1930,
as amended! and
(c)
The quantity of such fish entered into the
United States for consumption under paragraph
717(b) of the Tariff Act of 1930.
Of the total quantity of fish (29,239,808 pounds) entitled to
entry at the rate of 1-7/8 cents per pound during the calendar year
19 5 1 , not more than'one-fourth shall be so entitled during the first
three months, not more than one-half during the first six months, and
not more than three-fourths during the first nine months of the year.
treasury
departm ent
WASHINGTON. D .C
Information Service
52
IMMEDIATE RELEASE
Friday, January 12, 1951.
S-2568
It was announced today by the Bureau of Customs that
the tariff-rate quota for the calendar year 1951 on fish,
fresh or frozen (whether or not packed in ice), filleted,
skinned, boned, sliced, or divided into portions, not
specially provided for: cod, haddock, hake, pollock, cusk*
and rosefish, is 29,239,808 pounds.
The annual quota is the quantity entitled to be entered
for consumption in the United States at the rate of 1-7/8
cents per pound. The quota is 15 per centum of the average
aggregate apparent annual consumption of such fish during
the three calendar years immediately preceding the year
'for which the quota is established, or 1 5 ,000,000 pounds,
whichever quantity is greater.
The apparent consumption is the $um of
(a)
.(b)
(c)
The production in the United States of
fresh and frozen fillets, steaks, and
sticks of the named fish as reported by
the U. S. Fish and Wildlife Service;
The quantity of such fillets, steaks, and
sticks entered into the United States free
of duty as products of American fisheries
under paragraph 1730 (a) of the Tariff Act
of 1930 , as amended; and
The quantity of such fish entered into
the United States for consumption under
paragraph 717(b) of the Tariff Act of
1930.
Of the total quantity of fish (29 ,239*808 pounds) entitled
to entry at the rate of 1-7/8 cents per pound during the
calendar year 1951* not more than one-fourth shall be so
entitled during the first three months, not more than one-half
during the first six months, and not more than three-fourths
during the first nine months of the year,
0O0
&jh0
H©uUiWJsff,
mtMSE mrnma wmmmm»
Tuesday» January M & W j l
The Secretary of the Treasury announced last evening that the tenders fear
#1,000,000,000» m thereabout*, of 9X~day | m ^
bill* to be dated
18 and to
mature April 19» USX, which were offered on January 11» were opened at the Federal Re
serve Sank* on January IS*
The details of this issue are as follows?
Total applied for ** #1*937*5X2*000
Total accepted
- 1*002»70?,000 (includes #133,660,000 entered on a
Average price
mn~ee®apetitive basis and accepted in
full at the average price shown below)
- 99*6WM I t ^ e l e n t rate of discount approx* 1*391$ per m
Bangs of accepted competitive bids?
(Kxeeptiog two tenders
totaling #900,000)
9 9 * 6 6 9 Bfuimlent rate of discount approx* 1*31*9$ per annua
99,61*7
•
*
»
#
«
1*396$ »
*
High
tm
(If percent of the amount bid for at the low price was accepted)
Federal Reserve
District
Total
Total
Boston
Raw fork
#
|
21,633,000
1* 320,|gg|000
29,080,000
75,293,0»
US,328,000
14 ,600,000
234,332,000
27.979.000
6,496,000
Cleveland
Richmond
Atlanta
Chisago
St* Louis
Minneapolis
pmafta Citf
PaliAft
San Francisco
SOSO.
20,903,000
539,11*4,000
14.030.000
64.343.000
30,328,0»
.
14 600.000
^,967,000
165,352,000
19.209.000
6,204,000
25.237.000
54.499.000
108,813.,000
37 126.000
78 181,000
*1,937,512,000
*1*002,707,000
.
,
TREASURY DEPARTMENT
WASHINGTON.
Information Service
RELEASE MORNING NEWSPAPERS,
Pruesday. January l6 , 1951-
1 to
L Bo-
S-2569
54
The Secretary of the Treasury announced last evening that the
tenders for $1,000,000,000, or thereabouts, of ,91-day Treasury bills
to he dated January 18 and to mature April 19, 1951, which were
offered on January 11, were opened at the Federal Reserve Banks on
[January 15.
The details of this issue are as follows:
>)
MB I
I
Total applied for - $1,937,512,000
Total accepted
- 1,002,707,000 (includes $133,860,000
entered on a non-competitive
basis and accepted in full
at the average price shown
below)
Average price
- 99.648/ Equivalent rate of discount approx.
1 .391$ per annum
Range of accepted competitive bids: (Excepting two tenders total
ing $900,000)
99*659 Equivalent rate of discount approx.
1.349$ per annum
99*647 Equivalent rate of discount approx.
1 .396$ îper annum
High
Low
(27 percent of the amount bid for at the low price was accepted)
Federal Reserve
[District
Total
Accepted
Total
Applied for
boston
pew York
[Philadelphia
[Cleveland
[Richmond
Atlanta
[Chicago
|St. Louis
Minneapolis
Kansas City
ballas
ban Francisco
$
TOTAL
2 1 ,633,000
$
20 ,903,000
1,320,494,000
29 ,080,000
75,293,000
18 ,328,000
14,600,000
234 ,332,000
27 ,979,000
6 ,496,000
25 ,967,000
54 ,499,000
108 ,811,000
539,144,000
14,080,000
64,343,000
18 ,328,000
14,600,000
165 ,352,000
19 ,209,000
6,204,000
25 ,237,000
37 ,126,000
78 ,181,000
$1 ,937 ,512,000
$ 1 ,002,707,000
0O0
RELEASE AFTERNOON NEWSPAPERS
Friday. January 19. 1951
n
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/i*ayroll Savings,
hanks, schools and business and civic group's.
/
Mr. Taylor began his banking career in Iowa as a messenger,
in 1910. He became an Iowa/Bank^l&aininer in 1924 and was com
missioned a National Bank Ihcaminer in 1926. Then followed a series
of promotions, including an assignment to the examination of
“fietropelitan banks in the 7th Federal Reserve District with head
quarters in Chicago; Xlnief National B^nk Examiner of the 4th Federal
Reserve District with headquarters in Cleveland; and later return
ing to Chicago as jgfliief¿l!xaminer for the 7th District. He remained
there until 1934 when Jrie resigned to become associated with the
First Wisconsin National Bank and Wisconsin Bankshares Corporation.
Mr. Taylor is a member of the Association of Reserve City
Bankers, the American Institute of Banking, the Milwaukee Club
and the Wisconsin Club.
# # # # # # # #
o
TREASURY DEPARTMENT
Information Service
WASHINGTON, D .C .
REIBASE AFTERNOON NEWSPAPERS,
Friday, January 19, 1951.
Secretary Snyder today announced the appointment of
William (Bill) Taylor, president of the First Wisconsin
National Bank, Milwaukee, as Chairman of the Treasury
Advisory Committee on Savings Bonds for the State of
Wisconsin. Mr. Taylor succeeds the late Walter Hasten,
who served as Chairman from 1942 until his death last
October.
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 business and civic groups.
Mr. Taylor began his banking career in Iowa as a
messenger, in 1910. He became an Iowa bank examiner in
1924 and was commissioned a National Bank Examiner in 1926 .
Then followed a series of promotions, including an assign
ment to the' examination of metropolitan banks in the 7 th
Federal Reserve District with headquarters in Chicago$
chief national bank examiner of the 4th Federal Reserve
District with headquarters in Cleveland; and later returning
to Chicago as chief examiner for the 7 th District. He
remained there until 1934 when he resigned to become associated
with the First Wisconsin National Bank and Wisconsin
Bankshares Corporation.
Mr. Taylor is a member of the Association of Reserve
City Bankers, the American Institute of Banking, the
Milwaukee Club and the Wisconsin Club.
TREASURY DEPARTMENT
Washington 25
57
The following address by Secretary Snyder before
the student body, faculty, officers and guests of
Vanderbilt University, Nashville, Tennessee, is
scheduled for delivery in Neely Auditorium at the
University at g'p.m, GST Monday, January 15, 1951,
and is for release at that time.
FINANCIAL MOBILIZATION
I appreciate being among the alumni invited to participate
in the Monday evening discussion series during the 75th anniversary celebration of the founding of Vanderbilt. I am glad to
have this opportunity to revisit the campus.
A good many changes have occurred at Vanderbilt since I
left here -- changes which have spelled considerable progress
despite the greatest depression our Nation has ever known and
the exhaustion of two World Wars. The progressive strides our
university has made, however, cahnot be judged solely by such
measurements as are found in higher educational standards, in
creased enrollments, or new and improved buildings and facilities.
As is true in all of our great educational institutions,
the real progress of Vanderbilt lies also in something perhaps
less tangible but even more pervading. I refer to the immeas
urable contributions which Vanderbilt has made through the years
to what we might call America’s stockpile of character and understanding.
We have seen the development, during this University’s 75
years, of almost innumerable fields for the application of
knowledge. Vanderbilt has sent forth, class by class, many
thousands of young Americans well equipped to apply their efforts
in those fields, and thereby help make available to all the oppor
tunities of better living.
And for those destined to meet the social and economic
challenges of our times, character is no less important an attri
bute than knowledge. Prom Vanderbilt there has come a continuous
flow of graduates who are loyally attached to the highest ideals
and ethical standards, and to belief in tolerance and fair play.
S-2571
2
58
In preparing a great many young Americans for lives of
usefulness, Vanderbilt also has inculcated in them an under
standing of their heritage of freedom and the national and
world responsibilities which go with it. The value of that
particular understanding cannot- be over-emphasized, becausehere in America, we have too long taken our freedom for granted.
We have been apt to forget how short in time, and how limited
in extent, has been the actual experience of human freedom in
world history.
Of necessity, the events of recent years are bringing a
noticeable change in attitude to the Western World. We have
seen freedom-loving nations swallowed up, one after another,
through cleverly engineered internal dissension or through
inability to defend themselves. Our country itself is being
actually threatened by the communist ideology. That ideology
directly and brutally strikes at our ideals of freedom, of
justice, and of individual opportunity. We are now unquestion
ably learning that freedom can be maintained only through
continual, unremitting effort.
Today, for the second time within less than a decade, our
Nation is being called upon to- marshal its great military strength
to resist powerful aggressors who seek to destroy America. Our
answer to this challenge must be the successful accomplishment
of our defense goals and the maintenance and enlargement of the
strength of our domestic economy. These two things we must and
will accomplish in order to be successful in our united efforts
with other free nations to bring peace to the world. For
America and for its individual citizens, this means financial"
mobilization as well as military mobilization. Both are essen
tial to the effective prosecution of our national defense effort.
In the long annals of history it is a comparatively new
thing for the success of military strength to depend so largely
upon the continuing strength of the domestic economy. Today,
the economy must furnish an ever“flowing volume of goods and
services to support military operations.
In early times, when the exchange of goods and services
took place largely by barter, the problem of mobilizing the
defensive powers of the community was relatively simple. Levies
for defense and war were always in kind. Civilian and military
needs were merged and the reward for services was survival -- both
for the individual, and for the group.
- 3 -
59
Later on, when money grew in importance as a means of
exchange, it became common to build up treasure chests for the
use of the state. When danger threatened, these hoards of
money and valuables served to finance needed services and sup
plies. But it is obvious that treasure chests and direct levies
were adequate only in times when warfare was comparatively in
expensive and armies were largely sustained and paid by plunder.
The invention of gun powder, and the complicated weapons
which followed, entirely changed the conditions of waging war.
World War I, and to a far greater extent World War II, demon
strated that in modern mechanized conflict, effective military
operations depend on a vast and continuing flow of services and
supplies from the factories and the mines and the farms of the
entire Nation.
It is this unending flow of new services and new supplies
which provides the necessary basis of victory for a modern army.
And in the industrial economy in which we live, proper, yet
adaptable, money exchanges and credit operations are absolutely
essential to this flow. The complex interchange of goods and
services which make up the production potential of the Nation
depends at every stage on the smooth functioning of the monetary
and financial system.
Public- policies in every area of domestic endeavor — fiscal
and otherwise --r must be so designed as to strengthen rather
than weaken the sinews of our productive power. They must be
planned in such a way as to avoid the use of any measures -- how
ever well adapted they may seem to a specific purpose -- which
would undermine the ability of the American economy to meet the
tremendous demands which are being made upon it today.
The Secretary of the Treasury has grave responsibilities
in the formulation of fiscal policy to meet the financing needs
of our Government.
A period of international crisis such as the present one
requires the blending of revenue measures and refinancing
programs in such a way as to make the most effective contribution
to the productive power of the Nation, This is one of the most
difficult and most important problems on the domestic front.
- 4 -
60
I would like tonight to discuss briefly various aspects
of the financial mobilization job that lies ahead for all of
us. And I say "all of us" advisedly. No measures which the
Government may take in this or any other of our mobilization
efforts can be fully effective without the wholehearted sup
port and cooperation of every group and every active citizen
in our country.
During a period of defense mobilization, every effort
must be made to prevent a price and wage inflation.
This is particular ly true of a period, such as the present
one, which necessitates the diversion of an ever-increasing
portion of our productive power from civilian to military pro
duction. Inflation is one of the most deadly threats to the
strength of our economy. Inflation would endanger the efficient
mobilization of our resources. It would endanger not only our
current ability to produce, but also seriously jeopardize our
capacity of maximum production. Inflationary forces would cause
irrational allocation of the defense burden between different
groups. These forces would dangerously affect prices, profits,
rents. Every element of our economy would be reached. And as
it gains greater momentum, inflation becomes increasingly diffi
cult to control.
The first step in financial mobilization, therefore, should
be a revenue program that will pay for current expenses out of
current revenues. Such a program protects the economic health
of our Nation by eliminating deficit financing. It is also
indispensable as a means of diverting a substantial part of
both business and personal incomes from consumer markets.
The tax revenue measures enacted in the past six months
represent a substantial contribution to sound fiscal policy
during this period of mobilization. But, while they increased
the revenue producing strength of Federal taxes by approximately
20 percent, they can be considered as a first step only.
The President, in his budget message to the Congress today,
estimated that expenditures of $71.6 billion will be required
in the fiscal year 1952. This amount nearly doubles the ex
penditures of the fiscal year 1950 , which ended a few days
after the outbreak of hostilities in Korea last June. Government
receipts in fiscal year 1952 will amount to an estimated $55.1
billion -- or an increase of $10.6 billion over the current
61
- 5 fiscal year, due to increased incomes and higher rates of taxes
now in force. But despite this large increase in budget receipts
in fiscal year 1952 , and strict economy in non-defense spending,
there will still be an estimated deficit of $16 .5 billion if no
further tax legislation is enacted. To keep our finances on a
sound basis, the President announced in his message today that
he will shortly transmit to Congress recommendations for new
revenue legislation so that we may pay for the cost of defense
from current revenues as soon as possible.
A balanced budget, however, will not in itself prevent
inflation. For example, in the calendar year 1950 revenues
came much closer to balancing expenditures than was the case in
19^9. In fact at the close of the year expenditures exceeded
receipts by only $420 million, while the deficit amounted to
over $3t billion In the previous year. Yet In the past six
months, the inflation which has occurred following the outbreak
of war in Korea has been more serious than at any other time
since World War II. The recent upward, spiral was the result of
inflationary pressures in the private credit field, generated
largely by credit-financed purchases of consumer goods and
investment goods, particularly housing. There is a real danger
that for a time at least such purchases — particularly of
consumer durables -- will continue to be of a magnitude which
will add to the present inflationary pressures.
To minimize these sources of inflation, the Government,
under authority of the Defense Production Act of 1950 which was
enacted in September, moved immediately to impose selective
credit controls. Many persons have complained of the personal
hardship resulting from some of these controls. Yet it appears
that if we are to be successful in holding down inflationary
pressures still being generated, selective credit controls will
have to be materially strengthened.
Following the Presidents declaration of a national emer
gency in December, other selective controls were Instituted to
reduce the competition for scarce materials and services between
producers of essential and non-essential goods. Further controls
will undoubtedly have to be added if our expanding defense needs
are to receive priority without increasing the strain on the
price structure.
-
6
-
62
But at a time like the present when a significant portion
of the Nation*s production must take the form of defense mate
rials, the real answer to inflation can be found only when the
American people work together and abstain from unnecessary
spending or speculative investment.
Another vital necessity of our financial mobilization job
is that we take particular care in the field of debt management.
Our national debt is now around 257 billions of dollars. It is
more than five times as large as it was at the beginning of the
defense financing period prior to World War II. It comprises
approximately one-half of the total debt of the country and
constitutes a large portion of the assets of all the major
investor classes of the country. Operations affecting the pub
lic debt have repercussions which are felt throughout every
sector of the economy. Consequently, it is vital that the
management of this debt be conducted in such a way. as to contri
bute to in maximum degree, rather than endanger, the economic
well-being of the Nation.
It has been Treasury debt management policy to place a
large proportion of the public debt in the hands of nonbank
investors, and to reduce the amount of bank-held Federal secu
rities. During the calendar year 1950 , nonbank holdings con
tinued to climb, reaching an all-time peak in the last half of
the year. At the same time commercial bank holdings declined
to new postwar lows. The importance of this accomplishment
can hardly be overestimated, particularly now when it is vitally
important that the inflationary possibilities of bank credit
expansion be kept at a minimum.
The savings bond program is an important feature of the
Treasury*s efforts to increase nonbank ownership of Federal
securities. In every year since World War II savings bonds
outstanding have steadily increased. By the end of 1950 some
$58 billion were outstanding, almost $10 billion more than at
the close of World War II financing. Almost $4 billion of this
increase was in Series E bonds, about $35 billion of which were
outstanding at'the year*s close.
The savings bond program is continuing to play a most
important part in assuring the financial health of our Nation.
There is no more direct anti-inflationary effort that our
individual citizens can make in this period of financial mobili
zation than to direct as much as possible of their incomes into
savings.
63
- 7 The savings
forms — whether
savings and loan
insurance, or in
bond program aims at increased savings in all
in mutual savings or commercial banks, in
associations, in postal savings, in life
Government securities.
The important thing is that we must save an ever-increasing
portion of our incomes still available after taxes, instead of
spending it, if we are to effectively combat inflationary
pressures at their very source.
In times of great defense or military mobilization, it is
necessary that the responsibilities and burdens of the effort
be distributed as equitably as possible among the citizens.
For obvious reasons, we cannot all serve in the military forces.
We must rely largely upon our youth to bear the brunt of that
great task. But each of us can form a part of an effective
home front support to our fighting men by devoting our every
energy to keeping our economy on an even keel.
I have been asked many times such questions as: How much
can we spend on defense without bringing the nation to bank
ruptcy? How high can the public debt go? What limits are there
on taxation? In brief, how far are we able to carry financial
mobilization without precipitating economic disaster?
It would be a brash prognosticator who would attempt to
give a categorical answer to any of these questions.
Most of us remember the widespread alarm expressed in this
country when the public debt first approached $50 billion. That
was only ten years ago. Many economists were grievously con
cerned when defense and war costs first forced the mass levying
of heavy individual income taxes, and the lifting of corporate
taxes to never-before-known heights. Yet the economy not only
survived; it emerged from the trial stronger than ever.
We did not know our capacities then; we do not fully know
them now. What we do know is that our economy and our social
order have stood tests vastly greater than the most optimistic
analyst of a generation ago would have believed it possible for
them to stand.
-
8
64
-
Today we face our new task with our American productive
plant at the most efficient point in its history. Our existing
plant and equipment have been modernized and improved in order
to utilize the new techniques and discoveries of th© war and
postwar years.. Our basic productive capacity has been enormously
increased. Our steel output in 1950 totaled 97 million tons -7-1/2 million tons above the peak year of World War II; and a
further large expansion of steel capacity is under way. Our
electric power output recently has been running 50 percent above
the highest weekly rate of World War II. In 19^7 our railroads
embarked on a great new modernization program. There has been
a record expansion in the petroleum industry, the chemical
industry, and many others. A H in all, American industry has
invested $100 billion of private capital in modernization and
expansion of plant and equipment during the past five years.
This is just about double the combined investment of private
industry and Government during the entire period of World War II,
although during tho^e years we built the most efficient war
production machine which the world has ever known. Add to this
great industrial capacity the technical skills, the administra
tive abilities, the financial reserves of business and private
citizens, along with the knowledge and capacity to undertake
tremendous tasks -- and you have the foundation upon which we
are building our moMlization program of today. In this founda
tion is rooted the confidence with which we look ahead to what
ever further trials the unfolding of the human story may have
awaiting u s .
Personally, I do not think that as of today we stand on the
brink of any economic precipice. Our understanding of our capac
ities still may be imperfect, but certainly it has enlarged
greatly in the last decade, and in the direction of assurance
rather than of distrust.
The weight of the power of the free nations -- political,
economic and military -- in the balance of world affairs remains
far greater than that of the aggressors who are now threatening
us. The free nations already have made much progress toward
organizing that balance of power for common action, and they are
making further progress each day that goes by.
65
9
It is important to keep in mind the basic fact that the
road which we are traveling leads toward twin objectives
the
one security, the other peace.
The measures which we are taking in the interest of the
security objective serve equally the peace objective.
«
With confidence, with united effort, with the aid of the
friends we have in the family of nations, and with personal
sacrifice by us all, we may hope to find the road not too long,
not too tortuous.
0O0
33 I
-
12
-
In the world at large the cause of freedom has many
friends.
But the friends of freedom must stand united,
for therein lies our strength.
Through the United 1stions,
the North Atlantic Pact and the Inter-American system —
we are organizaing and uniting the forces of freedom —
militarily, economically and spiritually.
As the forces
of freedom gain in strength, many now sorely t empted by
fear and desperation to surrender to imperialistic com
munism — whether they hs the peasant in China or the silent
people behind the Iron Curtain —
will acquire new courage.
If we want others to have confidence in us, we must have
confidence in ourselves, and in the unity and strength of
free men everywhere#
With the help of Almighty God let us show that we are
worthy of the strength and freedom and blessing He has
bestowed upon us.
i 0O0 -
-
T3
11
Freedom-loving people everywhere stand with us.
They will
not let us down because we are determined not to let them
down.
To be sure, all has not gone well in Korea.
But never
theless the assembling in Korea of armed forces of many
■ f t * under the United Rations flag marked the beginning of
a new stage in the world's long struggle to eliminate war
from the human scene.
And if the United Rations forces had
not acted to check the-imperialistic designs of the Soviet
dictators in Korea, who can say we would not have already
faced other and even more serious invasions.
As General
Ridgeway so aptly put it when he assumed the late General
Walker's command —
We are not here to capture a few muddy
villages. We are here to keep the fighting from taking
place elsewhere#
In Europe, General Eisenhower and his highly competent
staff are at work laying the foundations of another Inter
national undertaking which powerfully strengthens our hopes
of eventual security and peace.
In our Interest as well as
in the interest of the free world we cannot sacrifice and
surrender the manpower and workshops of Western Europe to
the enemies of freedoia and religion.*
• XO m
if they understand the situation — will gladly make these
sacrifices to continue to enjoy the blessings of a free
world*
We must give full recognition to the fact* that in this
new period of world crisis, both the spiritual faith and
the material strength of America are on trial#
Our very
survival as a free nation is at stake*
We are all in this thing together.
The threat is to
the business man as well as to the soldier| to the Republican
Congressman as well as to the Democratic Congressman! to
t, much maligned
each individual consumer as well as to the awapkawd out very
necessary Government bureaucrat! and to the school children
of Buffalo, as well as to the women of Hew York City*
It is heartening to know that Americans with few
exceptions are alert to the dangers which threaten the
nation and are willing and eager to do whatever may be
necessary to overcome the threat to their freedom*
Fortunately»
the American people are united and no appeal to narrow parti
sanship can divide them in this period of grave peril*
Now most of what I have said has concerned our own re
sources, our own manpower, our own moral resolve*
But
against communistic aggression, we do not stand alone.
through the two tax enactments since the Korean episode.
These actions indicate the extent of the Presidents
awareness of the current situation and of his prompt action
to cope with it.
I have been talking about defense preparations in
terms of visible, tangible things such as factories and
munitions.
Equally Important —
if not more important to
my way of thinking —
is the mobilisation <of our moral and
spiritual strength.
And that brings me back to what I said
when I started — to your opportunity, as newspaper
publishers, to help all Americans gain an accurate under
standing of today1s important issues — with those issues
placed in their proper perspective.
I, for one, am certain that given that understanding,
the American people, as always, will meet every demand for
personal effort and personal sacrifice.
These are not the times for business as usual, for the
making of partisan political hay, for looking out for Number
One*
What has to be given up by each individual ~~ the
excess profits of the business man, the demagogic appeal of
the irresponsible legislator, the frills and gadgets desired
by the ordinary consumer*
A few selfish people may grumble
about these deprivations.
But the vast majority of Americans
«* B
OT
have been given specific defense orders on which to go
ahead«
The emphasis which must be laid on this task makes it
necessary for the Government to take early and effective
action looking toward the accomplishment of another major
task —
the maintenance of a sound and healthy economy
throughout the duration of our defense effort.
Restrictions
will need to be Imposed in all critical fields.
The burden
of taxes will be much heavier.
The fact that our economy
is already fully employed will tend to increase the difficulty
of controlling inflation —
our primary economic problem.
But our increased national Income will enable us to bear the
Increased burden of taxation and our Increased productive
powers will enable us to stem the inflationary pressures if
we are willing to work hard and economize rigidly.
President Truman has shown an awareness of the prime
necessity of carrying out successfully these two basic tasks -*
increasing defense production and controlling Inflation.
I need cite only a few actions by way of example —
the
Administration-sponsored Defense Production Act, the creation
of the post of Defense Mobillzer and the appointment of
Mr. Charles E* Wilson of Hew York to that post, the establlshiMil
of the Economic Stabilization Agency and the National Production
Authority, and the already greatly strengtened tax system
- 7 can be used to supply our defense needs.
Potentially we
are infinitely stronger industrially than we were at the
beginning of the last war.
And don’t think for a minute
that Joe Stalin has forgotten that it was American indus
trial strength that won the last war.
We have a powerful navy ready for action.
"mothballs* a large tonnage of cargo vessels.
We have in
The defense
establishment has guns, ammunition, airplanes, airfields,
training centers, tanks, trucks, and officers and men
trained in combat.
You may be sure that to the reserve
supplies which we stockpiled after the war, such additional
supplies as our military experts consider necessary will be
forthcoming in the shortest possible time#
Defense-wise, we have much more than we ever had before
on which to build —
but we must build and reconvert swiftly.
One of the major tasks of the Government is to direct
the output of our vast industrial resources to the actual
production of weapons and war materials, to epuip our en
larged forces and to help build up the defenses of other free
nations.
The planning and allocating of this program is in
itself a tremendous task, on which the Administration is
working day and night.
Now increased armed production is
getting under way, and in recent weeks more and more factories
*» 0 *•
And above all, In these five years of prosperity, we
have taken advantage of the opportunity to build our
I■
industrial capacity to a far higher level than ever before.
Since the end of the war, private industry has spent
more than $100 billion in a tremendous program to inorease
capacity, to modernize plants, and to prepare for an exn
pending economy in the years ahead.
This program, still
strongly under way, is a remarkable demonstration of con*
;|!'
^
fldence In the nation’s future.
2
'
\
It is one of the expressions
of national faith in our Government and of faith in our
1i
free enterprise system#
Jjfr
Today, our nation with only about % of the world’s
|\
inhabitants, acoounts for one-half of the entire world's
lrjduÿtrial production.
M
I
Our steel output exceeds that of
all the other countries combined.
J*
Our primary purpose and
.U L- 'yI
desirle has been to develop these great production facilities
I
for peace and human well-being#
But what we have built
for peace and human beings can be converted to produce the
armed force we require to protect and defend our freedom#
1 This time,we do not have to start our defense prépara*
y
|1 fl
tiens from scratch#
f t
'
The great industrial plant to which I
;
.
have referred includes many Installations of World War II
whi m are readily reconvertible to the production of military
•
. v'SRâ-X-'
A
•
equipment#
It includes many new industrial facilities which
W I
own freedom and that of other free nations § we must con
centrate on war production until the forces of freedom
have no less armed strength than the forces of totalitarian
aggression#
We cannot afford to let our unpreparedness invite
attack#
Is the task too great for us?
Ho task is too great when
its accomplishment is necessary for the preservation of
human liberty#
The five years which we have devoted to peacetime
progress have by no means been improvident and misspent
years#
Not only have they conformed to the American idea,
but also they have made our country, in many ways, potentially
stronger than ever before#
They have been years, of course, of exceptional pros' perity#
Peacetime employment was never before so high nor
production so heavy.
We have fully replenished our war-
depleted stocks of consumer goods.
We have gone on to new
horizons in the things that make up a higher living standard.
Not only have we had plenty for ourselves; we have
contributed more than generously to the rebuilding and
economic strengthening of Europe and other areas and thus
halted the unimpeded march of communism through dispirited
lands.
~ 4 ~
countries abroad Russia was bringing on© country after
another under her rigid political control, depriving their
people of the freedoms which are essential to a democratic
and decent living*
Thus through five postwar years of intense effort on
war preparations, Russia has built up a powerful military
machine*
She has mobilized enormous resources of manpower
and materials#
War equipment produced in her own factories
has been supplemented by equipment seized from the German
army and navy, and from the Japanese army in Manchuria*
Her industrial plant has been expanded by the important
industrial capacity taken over in such countries as
Czechoslovakia, where the Skoda munitions works is located)«*^
and by the aircraft factories and other industrial plants
in Eastern Germany*
Her technical skill has been supplemented
by competent technicians and scientists from Eastern Germany
and other countries now behind the Iron Curtain*
Of course the ultimate significance of these activities
of the Soviet Union did not become uncontrovertibly clear at
once#
But if there were any lingering doubts at home or
abroad — the invasion of Korea gave concrete evidence of the
brutal and cruel purpose of Russia’s military expansion*
The invasion of Korea gave us warning that freedom these
days is not secure without armed strength*
To preserve our
- 3 -
BY
freedom and peace*
That was all we wanted*
We hoped that other nations would pursue the same
course*
We hoped that through our courage in setting the
example, they would make sincere efforts, as we did, to
promote the reconstruction of war-damaged economies and
develop a world of peace, freedom, and Increased well
being*
To these ends we took a leading part in the organi
zation of the United Nations, which provided a means for
the peaceful settlement of international difficulties and
for cooperative action toward improving the health and
economic welfare of people throughout the world*
But while we were demobilizing our troops and recon
verting our war plants, the rulers of Russia — the Russian
Communist dictators —
embarked on a premeditated and
deliberate program of Soviet imperialism and world conquest*
Ihile American Industry manifested the goodwill which we
wanted all the world to know we cherished, Russian industry
was concentrated on speeding up the equipment for a great
array, a huge fleet of submarines, and a large modern air
force*
While the people of this country were making a magnificent
effort to show good faith by using a substantial part of their
resources for the relief and rehabilitation of war—torn
«•» 2 **■
No one, I believe, is better qualified to develop
a nationwide consciousness of the urgency of our defense
task than are the publishers and editors of this country»
And I believe that no one can contribute more effectively
toward directing the energy and talent of all Americans
into a whole-hearted, united effort, which will succeed
quickly and surely in eliminating the threat of aggression
that now clouds the future of all free nations»
At the outset I"want to point out that our record as
peace seekers is good and clear»
The people of this country,
throughout our history, have sought to develop in peace the
resources within our borders, to build up our own way of
life, and to encourage peaceful trade with other nations»
It has been traditional for us to keep our military forces
at a minimum. We have never chosen the path of war»
We
have always avoided war when, with honor, it could be
avoided»
We have believed that we can afford to lead the people
of other nations in living the peace which we espouse.
We
have hoped that they would share the same attitudes»
In this spirit after we won the last war we
d e m o b iliz e d
our armies as rapidly as our ships could bring the boys home*
We were not seeking new worlds to conquer*
We fought for
A CHALLENGE WE MIST MEET
1
appreciate the privilege of addressing the New York
State Publishers Association*
of this splendid opportunity —
I am going to take advantage
I don’t often get a chance
to talk to so many newspaper men ~~ they usually do the
talking to me —
to give you some of my thoughts about the
situation confronting the nation today, and about how we may
deal with that situation most effectively*
No group of New Yorkers is In a position to do more than
this group to bring to the people of this great State of
ours a better understanding of the issues that are important
to the national welfare, and to place these issues in their
proper perspective*
Today’s responsibilities in that respect
are as great as any we have ever faced.
Knowing New Yorkers -*
I was born and brought up in Central New York —
I am
confident we shall discharge those responsibilities with the
highest possible sense of obligation to our country and our
fellow Americans*
Only if the personal significance of recent world
developments is brought home to all Americans can we achieve
the singleness of purpose, and the unity of effort, which
will carry through our defense program effectively with the
speed which the times demand and at a bearable cost*
treasury department
Washington
The following address bjr. Edward H. Foley , J V ..»ijjnder Secretary,
ef"tha^Traaenry^ "before a luncheon meeting of the New York
State Publishers Association, Hotel Statler, Buffalo, N* Y , ,
is scheduled for delivery at 12:30 n. a.,. E. S. T . t T u e s d a y
January 16. 1951. and is for release at tah that time.
79
TREASURY DEPARTMENT
Washington
The folloving address by Under Secretary
Edvard Hv: Foley, Jrv, before a luncheon
meeting of. the Nev York State Publishers
Association, Hotel Stabler, Buffalo,
Nev York, is scheduled for delivery at
12; 30 p ,• m .-, E .rS. T ., Tuesday,
January lb, 1951 ».and is for release
at that time.
A CHALLENGE WE MUST MEET
I appreciate the privilege of addressing the Nev York State
Publishers Association, I am going to take advantage of this
splendid opportunity -- I don’t often get a chance to talk to so
many nevspaper men -- they usually do the talking to me -- to
give you some of my thoughts about the situation confronting the
nation today, and about hov ve may deal vith that situation most
effectively. ■
No group of Nev Yorkers is in. a position to do more than
this group to bring to the people of this great State of ours
a better understanding of the issues that are important to the
national velfare, and to place these issues in their proper
perspective. Today’s responsibilities in that respect are as
great as any ve have ever faced. Knoving Nev Yorkers — I vas
born and brought up in Central Nev York - I am confident ve
shall discharge those responsibilities vith the highest possible
sense of obligation to our country and our fellov Americans.
Only if the personal significance of recent vorld develop
ments is- brought home to all Americans can ve achieve the
singleness of purpose, and the unity of effort, vhich vill carry
through our defense program effectively vith the speed vhich the
times demand and at a bearable cost.
No one, I believe, is better qualified to develop a nationvide consciousness of the urgency of our defense task than are
the publishers and editors of this country. And I believe that
no one can contribute more effectively tovard directing the
energy and talent of all Americans into a vhole-hearted, united
S-2572
80
-
2
-
Wl11 su?ceed quickly and surely in eliminating
the threat of aggression that now clouds the future of all free
nations.
x
At the outset I want to point out that our record as peace
seekers is good and clear. The people of this country, throughout our history, have sought to develop In peace the resource!
vithin our borders, to build up our own way of life and to
encourage peaceful trade with other nations. It has been
traditional for us to keep our military forces at a minimum
We have never chosen the path of war. We have always avoided
war when, with honor, it could be avoided.
We have believed that we can afford to lead the people of
other nations in living the peace which we espouse. We have
hoped that they would share the same attitudes.
In this spirit after we won the last war we demobilized
our armies as rapidly as our ships could bring the boys home
«
c e
T
hafw
f s ^all
T / we
01’“ wanted.
3
anaa pence.
inat
was
"I fough/for ?reedom
Wp
°th8r natlons would pursue the same course.
We hoped that through our courage in setting the example they
would make sincere efforts, as we did, to promote the r C o n
struction of war-damaged economies and develop a world of peace
S
increased well-being. To these ends we took a
’
leading part in the organization of the United Nations which
d
Pi ? S c u C t r = C S
the peaoeful settlement of i n t e r m t l o m l
and Tor cooperative action toward improving the
ealth and economic welfare of people throughout the world.
our w a r r a n t *
wereA ^ ^ i i i z i n g our troops and reconverting
dictators
r
°f Russla " the Russian Communist
of
r em^a^ ed on a premeditated and deliberate program
of Soviet imperialism and world conquest. While American
industry manifested the goodwill which we wanted all th! world
t e e W n / u C t C 13116? ’ R\SSdan industr^ was concentrated on
submarined ^
equipment for a great army, a huge fleet of
auDmarmes, and a large modern air force.
effordtoChnw
t£ls country were making a magnificent
resources fnfth °d if1 ? 1
using a substantial part of their
(’n„di?eS f?r the relief and rehabilitation of war-torn
under^her ? i g i t C o ? d ? lanWaS ^r l ^ ln 8 °*e country after another
freedoms
dePr l v i n 8 their people of the
which are essential to a democratic and decent living.
81
- 3 Thus through five postwar years of intense effn-P-tpreparations, Russia has built uo a oove-nfn?
, Ya r
She has mobilized enormous resouT^e^nf* rful military machine.
^ e q u i pby
m eequipment
n t pro d u seized
ceT^hf
e*rr>nom r ? I c L fr?“ ZIidf's bDeen
^ “
E * 1" *
mented
supplefrom theyJa^ a n ^ e a m y in M f n c S u S a . 06^ 11
“*
and
Indus trial^apacity tlken o v I r ^ s u n f c o n n t ’T the lmportant
where the Skoda munitions works is located^anr^-h, a®. Cze°hoslovakia,
S3S9SS S S i ' S S
S lS 1 ?L“ lio”„ fc
rS t S i ,ra G* ” “ 1 *”
• S S ’i S i t S f i S i * “
?S«=ioih" * K S S
« i ° r » *too«f--nS ;
purpose of Russia's military expansioS?6 °f th® brutal and cruel
days S enorsecSre°withou? f ^ d ^ t r e ^ t h 6
these
own freedom and that of otheffree nations ™ pre®erve our
on war production until th<=>
^ ^ i 0118* ve mus^ concentrate
armed strengtht L T t h l forces o? t o L ^ t f ? m haVe no less
cannot afford to let our unpreparedness i n v ^ e attack!1™ - ^
its accomplishment°isSnecessaryUfor
the^r*
1S t+° great
when
liberty.
necessary for the
preservation
of human
have by no mean^been^improvident deJot?d t0 Peacetime progress
have they conformed to the American^dea^but^
Not °nly
before?1"
ln “any ways' Potentially stronger t L n ^ e r
Peacetime e m p l o S t ywasSie?erCb?for4 so h i ^ n o r ™ 1 pro®perltyconsumer^goods6
S°
that make up a ’h i ^ e r living s^andard^ h°rlZOnS ±n the things
tributed more than generouslr^to th*1 oui‘s® ^ es; we have constrengthening o? Europe a n d the rebulldlnS and economic
« * « * ■ » ^ fo ? i r r „ o^
1r s . s ; i ? s * i s r th-
82
-
b-
And above all, in these five years of prosperity, we have
taken advantage of the opportunity to build our industrial
capacity to a far higher level than ever before.
Since the^end^ of the war, private industry has spent more
than $100 ^billion in a tremendous program to increase capacity
to modernize plants, and to prepare for an expanding economy in
the years ahead. This program, still strongly under way is
a remarkable demonstration of confidence in the nation's'future.
It is one^of the expressions of national faith in our Government
and of faith in our free enterprise system.
Today, our nation with only about 7^ of the world's in~
habitants, accounts for one-half of the entire world's
industrial production. Our steel output exceeds that of all the
other countries combined. Our primary purpose and desire has
been to develop these great production facilities for peace and
human well-being. But what we have built for peace and human
beings can be converted to produce the armed force we reauire
to protect and defend our freedom.
This time, we do not have to start our defense preparations
from scratch. The great industrial plant to which I have
referred includes many installations of World War II which are
readily reconvertible to the production of military equipment
It includes many new industrial facilities which can be used to
supply our defense needs. Potentially we are infinitely
stronger industrially than we were at the beginning of the last
var
And don't think for a minute that Joe Stalin has for
gotten that it was American industrial strength that won the last
war.
I ^1Iie! ay'e a powerful navy ready for action. We have in
mothDalls a large tonnage of cargo vessels. The defense
h?e&,
t ha? guns>
airplanes, airfields, trainin
v a mfS,-KtankS’ i?‘ucks» and officers and men trained in combat.
after thp'taif’6 th£ t 5 ? , ^ ® reserve supplies which we stockpiled
’ such additional supplies as our military experts
consider necessary will be forthcoming in the shortest possible
whichDtí!e^ ? ^ iSeV W2 have much more than we ever had before on
to build -- but we must build and reconvert swiftly.
cmi-h„2nÜe0f the “aj‘?r taks of the Government is to direct the
of our vast industrial resources to the actual proforced»ní ?®aP°a a .and war materials, to equip our enlarged
orces and to help build up the defenses of other free nations
- 5 The planning and allocating of this program is in itself a
tremendous task, on which, the Administration is working day and
night. Now increased armed production is getting under way, and
in recent weeks more and more factories have been given specific
defense orders on which to go ahead.
'
^
The emphasis which must be laid on this task makes it
necessary for the Government to take early and effective action
looking toward the accomplishment of another major task _ the
mainoenance of a sound and healthy economy throughout the
diration of our defense effort. Restrictions will need to be
imposed in all critical fields. The burden of taxes will be
^ac^ that our economy is already fully employed
will tend to increase the difficulty of controlling inflation
our primary economic problem. But our increased national income
will enable us to bear the increased burden of taxation and our
increased productive powers will enable us to stem the in
flationary pressures if we are willing to work hard and
economize rigidly.
President Truman has shown an awareness of the prime neces
sity of carrying out successfully these two basic tasks -increasing defense production and controlling inflation
I need
® few actions by way of example -- the Administrationsponsored Defense Production Act, the creation of the post of
Defense Mobilizer and the appointment of Mr. Charles E, Wilson
of
°2f to that P°st, the establishment of the Economic
Stabilization Agency and the National Production Authority and
strengthenedsystem through the
Korean episode. These actions indicate
and nf m « ° faf President's awareness of the current situation
and of his prompt action to cope with it.
about defense preparations in terms of
Tfmvoii *• nSible things such as factories and munitions.
is th e ^ o M l i
n0t mor! lmP°rtant to my way of thinking —
?
mobilization of our moral and spiritual strength. And
opnortun? ? 3 me ba°k t0 What 1 sald when 1 started -- to your
an
nels^ ev publishers, to help all Americans gain
thn*» IT
understanding of today's important issues -- with
se issues placed in their proper perspective.
Amerik/nkiTi’
°®rtaln that given that understanding, the
effort
a? always,,will meet every demand for personal
eitort and personal sacrifice.
These are not the times for business as usual, for the
making of partisan political hay, for looking out for Number
One« What has to be given up by each individual -- the excess
profits of the business man, the demagogic appeal of the
irresponsible legislator, the frills and gadgets desired by the
ordinary consumer. A few selfish people may grumble about these
deprivations. But the vast majority of Americans -- if they
understand the situation -- will gladly make' these sacrifices
to continue to enjoy the blessings of a free world.
We must give full recognition to the fact, that in this
new period of world crisis, both the spiritual faith and the
material strength of America are on trial. Our very survival
as a free nation is at stake.
We are all in this thing together. The threat is to the
business man as well as to the soldier; to the Republican
Congressman as well as to the Democratic Congressman; to each
individual consumer as well as to the much maligned but very
necessary Government bureaucrat; and to the school children of
Buffalo, as well as to the women of New York City.
It is heartening to know that Americans with few exceptions
are alert to the dangers which threaten the nation and are
willing and eager to do whatever may be necessary to overcome
the threat to their freedom. Fortunately, the American people
are united and no appeal to narrow partisanship can divide them
in this period of grave peril.
Now most of what I have said has concerned our own re
sources, our own manpower, our own moral resolve. But against
communistic aggression, we do not stand alone. Freedom-loving
people everywhere stand with u s . They will not let us down
because we are determined not to let them down.
To be sure, all has not gone well in Korea. But nevertheless
the assembling in Korea of armed forces of many lands under the
United Nations flag marked the beginning of a new stage in the
world's long struggle to eliminate war from the human scene.
And if the United Nations forces had not.acted to check the
imperialistic designs of the Soviet dictators in Korea, who can
say we would not have already faced other and even more serious
invasions. As General Ridgeway so aptly put it when he assumed
the late General Walker's command -- We are not here to capture
a few muddy villages. We are here to keep the fighting from
taking place elsewhere.
85
- 7 In Europe, General Eisenhower and his highly.competent
staff are at work laying the foundations of another inter
national undertaking which powerfully strengthens our hopes of
eventual security and peace. In our interest as well as in the
interest' of the free world we cannot sacrifice and surrender
the manpower and workshops of Western Europe to the enemies of
freedom and religion.
In the world at large the cause of freedom has many friends.
But the friends of freedom must stand united, for therein lies
our strength. Through the United Nations, the North Atlantic
Pact and the Inter-American system -- we are organizing and
uniting the forces of freedom — militarily, economically and
spiritually. As the forces of freedom gain in strength, many
now sorely tempted by fear and desperation to surrender to
imperialistic communism -- whether they be the peasant in China
or the silent people behing the Iron Curtain -- will acquire
new courage. If we want others to have confidence in us, we
must have confidence in ourselves, and in the unity and strength
of free men everywhere.
With the help of Almighty God let us show that we are
worthy of the strength and freedom and blessing He has bestowed
upon us.
oOo
- 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
as amended by Section
115
U2
and
117
(a)
(1)
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. h18, 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
j
Reserve Banks and Branches, foliating which public announcement vail be made by |
the Secretary of the Treasury of the amount and price range of accepted bids.
Those submitting tenders will be advised of the acceptance or rejection thereof|
The Secretary of the Treasury expressly reserves the right to accept or reject
any or 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 .,>200,000
or less without stated price from any one bidder m i l be accepted in full at the!
average price (in three decimals) of accepted competitive bids.
Settlement for
accepted tenders in accordance with the bids must be made or completed at the
Federal Reserve Bank on January^, 1?£L
>
cash or other ^ iediately avaij
able funds or in a like face amount of Treasury bills maturing ,January^,, lja
Cash and exchange tenders will receive equ*l treatment.
Cash adjustments will
made for differences between the par value of maturing bills accepted in exchan^
and the issue price of the new bills.
The income derived fra?. Treasury bills, whether interest or gam 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 a
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 fr«
all taxation now or hereafter imposed on the principal or interest thereof
M
U
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Thursday, January 18, 1951
The Secretary of the Treasury, by this public notice, invites tenders for
$ 1-000,000-000 , or thereabouts, of
^
in exchange for Treasury bills maturing
„-day Treasury bills, for cash and
January
1951— > to
lssued on
a discount basis under competitive and non-competitive bidding as hereinafter
provided.
The bills of this series m i l be dated
v/ill mature
April 26.
19a
Januarv 25. 195]— » 3114
vfhon 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. January g?. IftSTenders will not be received at the Treasury Department, Yfashington. 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 forearded in the special envelopes which vail
be supplied by Federal Reserve Banks or Branches on application therefor.
Others than banking institutions Trill not be permitted to submit tenders
except for their cron account.
Tenders will be received ifithout deposit fro
incorporated banks and trust companies and from responsible and recognized
dealers in investment securities. Tenders iron others must be accompanied
by payment of 2 percent of the face amount of Troasury bills applied for,
TREASURY DEPARTMENT
Information Service
WASHINGTON. D .C .
89
morning newspapers,
Thursday, January 18, 1951. ‘
release
S-2573
The Secretary of the Treasury, by this public notice, invites
tenders for $1,000,000,000, or thereabouts, of 91-day Treasury bills,
for cash and in exchange for Treasury bills maturing January 25,
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 25, 1951, &hd will mature April 26,
1951, when the face amount will be payable without interest. They
will be issued in bearer form only, and in denominations of $1,000,
1^,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 Tclock p.m., Eastern Standard time,
Monday, January 22, 1951. Tenders will not be received at the
Treasury Department, Washington, Each tender must he 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 he supplied by Federal Reserve Banks or
Branches on application therefor.
Others than hanking institutions will not he permitted to submit
tenders except for their own account. Tenders will be received
vithout deposit from incorporated banks and trust- companies and from
responsible and recognized dealers in investment securities. Tenders
from others must be accompanied by payment of 2 percent of the face
amount of Treasury hills applied for, unless the tenders are
accompanied by an express guaranty of payment by an incorporated bank
or trust company.
Immediately after the closing hour, tenders will be opened at
the Federal Reserve Banks and Branches, following which public
announcement will be made by the Secretary of the Treasury of the
amount and price range of accepted bids. Those submitting tenders
will be advised of the acceptance or rejection thereof. The
Secretary of the Treasury expressly reserves the right to accept or
reject any or all tenders, in whole or in part, and his action in
any such respect shall be final. Subject to these reservations,
non-competitive tenders for $200,000 or less without stated price
from any one bidder will he accepted in full at the average price
a
(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 25, 1951* in Cash
or other immediately available funds or in a like •face amount of
Treasury bills maturing January 25, 1951. 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 hills shall bp 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) cfthoInternal Revenue Code, as amended by
Section 115 o.f 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
pf, and such bills are excluded from consideration as capital assets,
Accordingly, the owner of Treasury bills (other than life insurance
companies) issued hereunder need Include in his income tax return
only the difference between the price paid for such bills, whether
on original issue or on subsequent purchase, and the amount actually
received either upon sale or redemption at maturity during the
taxable year for which the return is made, as ordinary gain or loss.
Treasury Department Circular Wo. 4l8, as amended, and this
notice, prescribe the terms of the Treasury bills and govern the
conditions of their issue. Copies of the circular may be obtained
•from any Federal Reserve Bank, or Branch.
0O0
oe
* 15 **
Looking back over the
Rears
of our national history,
and particularly the period following T% r l d War II, one major
fact standi out*
That is the strength which our system of
private enterprise and representative government has demon*
strated In the face of constantly changing conditions*
The
obstacles m have overcome, the progress we have achieved in
all lines of endeavor, the records we have established —
all
stand as a tribute to the character and the food faith of the
American people* and to their demonstrated ability to build
an ever stronger nation*
Today, In this period of world crisis, it is heartening
to know that people of all interests throughout the nation are
joining in a concerted urogram to overcome the threat to our
ideals and our freedom*
Alert to the dangers which threaten
us, they are ready to work shoulder to shoulder In the unity
of effort which Americans have always demonstrated in times of
national peril*
In the light of our accomplishments in the
past * we have every reason to face our task with courage and
confidence*
-oOo-
Th#re are direct controls* such as m g s sud price controls,
rationing and allocations, as well as indirect controls,
sm h
m higher taxes and
s w in g m m * b y consumers instead
of buying unnecessary itemi»
A fine media for thrift is the
Barings Bonds program«
At this juncture in our national life, it is well to
consider how far we hare come since World War II»
Private industry has spent more than $100 billion in
a tremendous program to increase capacity to modernise plants,
and to prepare for an expanding economy in the years ahead#
The program is still strongly under way»
Aided by new
defense plant/construction? private industry in 1951 will
/
invest & 0 billion on more in new nlant ani eoulpment,
accordine to present estimates, thus setting another all-time
record.
The great postwar expansion program, financed entirely
b y private industry, is a remarkable demonstration of confidence
«in the nation*s future. We thus have the advantage of a much
jstronger and more productive economy than would otherwise
ihave been possible, Nevertheless the effort to regain a
Idefensive power sufficient to turn hack the threat of Communist
| aggression will be a very costly one.
se
- 13 Let me mention a few of your own companies.
Here in
Chattanooga, the Provident Life and Accident Insurance Company
has quadrupled participation and more than 50 percent of its
600 employees are enrolled.
The cooperation shown the Treasury
by both the Chattanooga News-Free Press and The Times has
*
aided the drive in this city#
I would be remiss if I did not
extend the Treasury’s thanks to Mr* D* E* C?riswold, tbs County
Chairman, and Mr» <1* Burton Frierson, «Jr»* the Regional Payroll
Savings Chairman.
The General Shoe Corporation at ïïashville has also
compiled an excellent record in Payroll Savings*
The achieve*
ment of 100? participation among the employees of B. F.
Goodrich Company Plant at Clarksville and of 99 percent
participation by the Army’s General Depot at Memphis is
*:
,'**•
-*
certainly outstanding.
I might add that, during the Payroll Savings Drive last
Fall, 152 Tennessee firms not previously using the Plan
adopted and installed it for the first time.
were in this area.
Eleven of these
These facts indicate a genuine interest
in the advantages of the H a n .
In conclusion, I would summarize by saying that there
is a bundle of sticks, which together constitute a powerful
weapon against inflation.
£8
«**■ H|| m
The conclusion follows that nt n Bonds are influenced by
the very same factors that affect the other types of
llouid savings.
But whatever induced owners of these various
types of savings to require money does not indicate any trend,
in my judgment, of forsaking the traditional principle of
thrift which is Ingrained in the fibre of Americans*
The
citisens of this land have been reared on the philosophy
of saving something "for the rainy day*" As a conseouence,
people have saved their money to buy life Insurance, to have
checking and savings accounts in banks , and to purchase
building and loan shares*
These are the older forms of
dollar investments in our economy for the mass of cltisens*
But the Savings Bonds urogram, inaugurated in 1935, also
affords another avenue of thrift for a broad market.
Confidence In thrift, Mxich/is synonymous with confidence In
/
the future, is being forcefully demonstrated in the increased
response to a stimulation drive for the sale of Series "E*
Bonds through the Payroll Savings Plan*
For example, one
large steel company had 18 percent employee participation
prior to June 25 1950*
78 percent*
the land
W o t the employee participation is
This is typical of a host of companies throughout
and these results could have been achieved only
through the personal interest of top management and labor.
-
11
-
It tes been the policy of Secretary Snyder to encourage the
sale of Government securities to non-bank Investors — and
especially to encourage the sale of Savings Bonds to
individuals —
and to use the proceeds to retire debt held
by the comercial banking system*
During the period from
February, 1946, — when the Tictory loan was completed —
through the end of 1950, ÉS5 billion of bank-held debt was
retired*
At the same time, the total amount of Savings
Bonds outstanding increased by nearly $10 billion, of which
¿
--ife:■
the popular 1 Bond accounted for $4 billion*
In every year following World War XI, the total value
of Savings Bonds outstanding has steadily Increased,
By the
end of 1950, they totalled about $58 billion with approximately
|34 billion being represented by the Series 1 Bonds.
Savings
Bonds constitute 23 percent of the public debt today compared
with 5 percent at the end of 1939.
Some of you may have read that, following the outbreak
of hostilities In Korea, the redemptions of Series 1 Bonds
have exceeded sales*
The peak was reached in August, 1950,
and there has been a decline since that time.
Presumably,
testy buying of consumer goods induced cash-in of these bonds,
as well as withdrawals from mutual savings banks, commercial
bank time deposits, and savings and loan associations.
se
-
10
•*
S tiff M&HAGMFBT
At the end of 1939, the public debt amounted to
147-1/2 billion.
It grew during the World War H period
to $280 billion end now totals approximately $258 billion.
At the end of 1939, the debt of the Federal Government
accounted for 2S£ of the total debt of the country, whereas
the debt now accounts for 5CT, of all debt.
Consecuently,
decisions relating to the nubile debt are ~>f vital
significance to the economic and financial welfare of the
entire country.
The distribution of that debt has an
important bearing on the question of inflation.
Government
securities held by a commercial bank, for example, ©an
become the source of reserves which may form the basis for
oredit expansion/ If credit is expanded, the money supply
of the country is Increased without a corresponding Increase
In the volume of goods and services produced.
Inflationary
pressures on prises are the result*
On the other hand, that portion of the w h i l e debt which
is held by non-bank investors — * whether individuals,
business corporations, or other non-flnanclal institutions —
does not serve as a basis for increasing the money supply.
36
•* O «■»
These ^loopholes” have become embedded in the tax system
and have the effect of exempting from Federal income tax
certain types of corporate or individual income.
Such
favored treatment may have been justified originally because
of the halo surrounding certain types of enterprises, or
because there was but little effect, moneywise, when rates
were negligible in comparison with those existing today.
The present burden of taxation would indicate the desirability
of examining these areas as a source of needed revenue.
I should like to make another observation, and I know
that it will be accepted in the philosophical spirit which
prompts the thought,
I have been impressed by the fact,
since I went to work at the Treasury, that all great public
issues engender spontaneous reactions throughout organized
industry, labor, and farm groups, as well as the public at
large.
This results, generally, in a fairly even distribution
of people who are either "for” or "against9 a particular
issue, whether it be extension of social security, or extension
of the Trade Agreements Act, just to use a couple of illustra
tions.
But when it comes to taxation, many seem to be against
the ideal
If there is any popular tax, it is the one which
the other fellow is to nav.
ie
» 0 •
But revenues* on the other hand» are exneeted to return only
# 5 . 1 billion, under present laws, during that period.
It
is apparent that taxes must again be increased substantially
If ws are to avoid serious inflationary pressures.
Tha
President’s tax proposals are scheduled to be submitted
about the end of this month.
Obviously, the details of such
program are not a proper topic for discussion today since
some of the problems are still being resolved.
In connection with future tax legislation, 1 was
impressed with the letter of invitation to the Secretary
from your President, Mrs. Kelley,
said that this meeting
# * M|
will he followed by active efforts in the community
to create understanding and support of increased taxes <•••
This is a commendable project, and I know that it idll he
done diligently and with care.
I hope that T m a y b e permitted
a gratuitous observation about your task.
One area where
public information is less clearly understood than in other
fields of taxation concerns what are variously described as
"loopholes” , or "inecuities", in the tax laws.
Some people even call them "sacred cows «
The last session of Congress gave attention to some of
these items, and it is reasonable to suppose that further
consideration might be given to the subject during the
se
- 7 Those two tax measures added nearly $8.0 billion to the
yield of the Federal tax system.
This represents approximately
a 20 percent increase in the revenue producing strength of
the fax system and constitutes an important step in the
direction of financial preparedness.
Never in the history of this country has so much
additional revenue been Imposed in such a short period of
time.
I take pleasure in paying public tribute for this
accomplishment to the stalwart leadership of Mr. Doughton
of North Carolina, Chairman of the Committee on Ways and
Means, and Senator George of Georgia, Chairman of the Senate
Finance Committee.
And, of course, Tennessee’s own Jere
Cooper, the second ranking Democratic member of the Ways and
Means Committee, is always a tower of strength.
The President’s Budget Message, transmitted to the
Congress on Monday of this week, ealls for budgetary
expenditures of $71.6 billion in the fiscal year beginning
July 1, 1951.
This is a dollar total that has been exceeded
only by the three highest years of World War II.
The present
budget reflects the huge expenditures which will be required
by the military services*
This program of limited excise tax revision was to facilitate
*>
' <«41
economic prosoerity,
In general, it would have reduced taxes
i&ich burden consumers, and would have removed tax inequities
among competing business enterprises.
After painstaking work
and deliberation by the Ways and Means Committee, tb*
House
+
♦
of Representatives massed a revenue bill on June S9> 1950*
Following the outbreak of hostilities in Korea, the resulting
need for additional military items raised the Government’s
revenue requirements substantially.
¥
Accordingly, on
&
July 25, 19S0, the President requested that the Senate defer
excise tax revision and convert the House hill into an
interim revenue-raising measure.
The Congress responded
with dispatch, and, before recessing in October it enacted
a tax bill estimated to s M approximately $4.5 billion
annually to Federal revenues.
Furthermore, the Congress
directed that excess profits tax legislation be prepared for
consideration upon the reconvening of Congress on November 27.
The lays and Means Committee, in response to the
Congressional mandate, began hearings on November 15.
Between
that date and January 1, 1951 — a period of six weeks —
the Congress enacted a profits tax, estimated to yield
tt
*
approximately $3.3 billion annually,
001
- 5 In attacking this problem, there are certain direct
controls available to your Government, such as oower to
control wages and nrices, to allocate materials, and to
institute rationing.
However, I want to address my remarks
to what might be termed those indirect controls which are
within the sphere of operations of the Treasury Department.
I refer to taxation and the management of the public debt.
T A U T ION
In my judgment, too little public attention has been
given to the remarkable record of Congress from the period
of June 25, 1950, to January 1, 1951, in the field of taxation.
The American legislative system is often considered by
opponents of the democratic process to be too cumbersome and
time-consuming for the prompt adjustment to rapidly changing
economic conditions.
But once again the Congress has
demonstrated that, when time is of the essence, it can be
relied upon for prompt and effective response to the nation1s
fiscal needs.
I want to trace, briefly, the calendar year 1950 in the
field of taxation.
On January 23, 1950, the President
recommended to the Congress that certain reductions be made
in excise taxes, with that revenue loss to he balanced by
the elimination of tax loopholes.
xox
- 4 -
From this communist threat there has arisen the need
for an expanded, and accelerated, defense program.
The
ultimate decision in both World War I and World War II turned
upon the ability of this country to supply articles of war
and food in adequate quantity to our overseas forces and our
allies.
The same will he true in any full scale war, if the
communists choose to follow that route.
The conversion of
industrial manufacturing plants and the diversion of
commodities from civilian to defense purposes creates a
shortage of goods and services.
At the same time, the already
high monetary return to workers and farmers is increased
because of longer hours of work, premium pay, and increased
Consequently, there is money available in the hands of
consumers hut less goods and services are available, so the
old law of demand and supply operates with increased tempo.
Prices are raised by some manufacturers in expectation of
higher costs for raw materials and labor; others follow suit,
and the chain reaction is under way.
Unnecessary buying of
goods at the retail level adds fuel to the fires.
The end
result is inflation, which is described in your latest
publication, "You Lose If Inflation Wins."
SOI
- 3 -
It exercises control by the simple process of withholding
food from those who do not conform end by incarcerating the
defectionists.
You, who are particularly concerned with voting, may
be interested in a story which was related recently by a
former prisoner of war in Russia.
The Russian workers in
a factory were told by the political commissar that they
could rote for Comrade X,
They replied that they did not
want to vote for him because they wanted Comrade Y, a fellow
worker, who was a war hero and who held many air force
decorations.
The next day, the workers did not receive their
daily food ration
and so, of course, they had to vote for
Comrade X.
The American people will not surrender their priceless
freedoms for the mess of pottage which is communism.
have allies of similar courage.
We
let us not think that they
can he abandoned to a fate worse than death and that we can
wait for the inevitable day for our own land to be a scene
of conflict.
We of the South know particularly the ravages
of war from the lips of our own parents or grandparents.
Let us strengthen and sustain our allies and be ready to
stand by them if they are attacked.
T h e L e a p t# o f Women V o t e r s * a s a n a t i o n a l o r g a n iz a t io n *
h a s e a r n e d t h e h i g h e s t r e s p e c t o f n o t o n l y th e women o f t h i s
c o u n t r y , h u t a l s o t h e m en, f o r i t s o u t s t a n d in g w o rk i n
d e v e lo p in g a m ore I n t e n s e i n t e r e s t i n n a t i o n a l a f f a i r s #
The
u n b ia s e d a n a l y s i s o f c o n t r o v e r s i a l c u r r e n t is s u e s h a s b e e n
*r
0
a m a jo r f a c t o r in r a i s i n g * and im p r o v in g , t h e s ta n d a r d s o f
good govern m en t#
i in c lu d e wm en!< a d t h i n t h e o r b i t o f y o u r
in f lu e n c e b e c a u s e p r a c t i c a l l y e v e r y man in public l i f e i s
e i t h e r m a r r ie d , o r h a s s i s t e r s # c o u s in s an d a u n ts * w ho
c o n s t a n t l y n ib b le a t h im on i s s u e s b o t h g r e a t an d s m a ll*
# **
t h e r e f o r e # a men ****** p a r t i c u l a r l y i f h e h a s a w if e an d th r e e
d a u g h te r s **** i s o b li g e d t o in fo r m h im s e lf * e v e n / i f h e d o e s i t
s u r r e p t i t i o u s l y , o f t h e c u r r e n t t h in k in g o f t h e L e a g u e o f
Women V o t e r s , a s a m a tte r o f s e l f d e f e n s e * t h u s , a g a in we
h ave p roven , t o th e f i e l d o f id e a s , th e o ld ad age ab o u t
c o m p e t it io n an d i t s b e n e f i c i a l e f f e c t s u p o n th e b o d y p o l i t i c *
T h e p ara m o u n t i s s u e to d a y i s t h e s t r u g g l e o f d em o cra cy
v e r s u s communism#
Cossm m lsm i s b u t a n o th e r , and m ore v i c i o u s ,
fo rm o f d i c t a t o r i a l g o v e r n m e n t, t h a t f r e e p e o p le s o f th e
w o r ld h a v e h a d t o fa c e #
I t f e e d s m s e c r e c y an d I n t r i g u e -
i t i s a f r a i d t o p e r m it t r a v e l e r s w it h in i t s b o r d e r s o r th e
f a c t s o f W e s te r n c i v i l i s a t i o n t o b e freely c i r c u l a t e d w ith in
i t s s p h e r e o f in f lu e n c e #
I t If a p le a s u r e f o r me t o r e p r e s e n t th e H o n o ra b le
Jo h n W# S u f f e r * S e c r e t a r y o f t h e T r e a s u r y , her® to d a y #
A s y o u know , th e S e c r e t a r y , who i s a n a t i v e o f A r k a n s a s ,
r e c e iv e d M s c o l l e g e e d u c a tio n a t V a n d e r b ilt U n i v e r s i t y , and
T e n n e s s e e o c c u p ie s a warm s p o t in h i s h e a r t#
But fo r
c o n f l i c t i n g e n g a g e m e n ts , h e w o u ld h a v e b e e n d e li g h t e d t o
a c c e p t th e L e a g u e 1 s k in d i n v i t a t i o n t o p a r t i c i p a t e i n t h i s
m e e tin g * T h e S e c r e t a r y e s p e c i a l l y com m ends y o u r I n t e r e s t
i n a f u r t h e r u n d e r s ta n d in g and s u p p o r t o f t a x a t i o n an d o t h e r
f i s c a l p o l i c i e s w h ic h w o u ld c u r b i n f l a t i o n an d s t a b i l i s e th e
econom y#
I s p e a k t o y o u a s a n o th e r n e ig h b o r , b u t fro m t h e e a s t
r a t h e r th a n th e w e s t , s in c e xay home i s N o r th C a r o lin a *
tw o s t a t e s a r e s e p a r a t e d b y fo r m id a b le m o u n ta in s
Our
th e
h i g h e s t a lo n g t h e A t l a n t i c S e a b o a r d ~~ b u t t h e y h a v e n o t
0
0
*
p r e v e n te d t h e f r e e e x c h a n g e o f i d e a s , coim aeroe, co m m u n ica tio n s,
an d f r i e n d l y r i v a l r y *
T h e p e o p le o f W e s te r n N o r th C a r o lin a
an d E a s t e r n T e n n e s s e e p a r t i c u l a r l y h a v e a com m u n ity o f
«#
0
i n t e r e s t i n su c h im p o r ta n t ite m s a s r o a d s , w a te r , e l e c t r i c
i
*
p o w e r, an d t h e C r o a t Sm oky M o u n ta in s N a t io n a l P a r k *
ASSISTAI? SECRETARY OF H E TREASURY,
AT A LHNCHEOR MEETING OF THE
\
LEAGUE OF WOMEN VOTEES OF CHATTANOOGA. TENNESSEE.
IN THE BALL ROCK OF THE HOTEL PATTER,
CHATTANOOGA. TENNESSEE,
AT 12s00 NOON ON WEDNESDAY. JANÜART 17, 1 9 a .
106
Address by John S. Graham, Assistant Secretary of
the Treasury, at a Luncheon Meeting of the
League of Women Voters of Chattanooga,
Tennessee, in the Ball Room of the
Hotel Patten, Chattanooga,
Tennessee, Wednesday,
January 17, 19 5 1 ,
12:00 noon.
It is a pleasure, for me to represent the Honorable John W.
Snyder, Secretary of the Treasury, here today. As you know, the
Secretary, who is a native of Arkansas, received his college
education at Vanderbilt University, and Tennessee occupies
a warm spot in his heart. But for conflicting engagements, he
would have been delighted to accept the League's kind invitation
to participate in this meeting. The Secretary especially com
mends your interest in a further understanding and support of
taxation and other fiscal policies which would curb inflation
and stabilize the economy.
I
speak to you as another neighbor, but from the east
rather than the west, since my home is Worth .Carolina. Our two
states are separated by formidable mountains — the highest
along the Atlantic Seaboard -- but they have not prevented the
free exchange of ideas, commerce, communications, and friendly
rivalry. The people of Western North Carolina and Eastern
Tennessee particularly have a community of interest in such
important items as roads, water, electric power, and the
Great Smoky Mountains National Park.
The League of Women Voters, as a national organization, has
earned the highest respect of not only the women of this country,
but also^.the men, for its outstanding work in developing a more
intense interest in national affairs. The unbiased analysis of
controversial current issues has been a major factor in raising,
and improving, the standards of good government. I include
men'1 within the orbit of your influence because practically
every man in public life is either married, or has sisters,
cousins and aunts, who constantly nibble at him on issues both
great and small. Therefore, a man'.-- particularly if he has
a wife and three daughters -- is obliged to inform himself, even
3-2574
2
if he does it surreptitiously, of the current thinking of the
League of Women Voters,.<as a matter of self defense. Thus,
again we have proven,- in the field of ideas, the old adage
about competition and its beneficial effects upon the body
politic.
The paramount issue today is the struggle of democracy
versus communism. Communism is but another, and more vicious,
form of dictatorial government, that free peoples of the world
have had to face. It feeds on secrecy and intrigue
it is
afraid to permit travelers within its borders or the facts of
Western civilization to be freely circulated within its sphere
of influence. It exercises control by the simple process of
withholding food from those who do not conform and by incar
cerating the defectionists..
You, who are particularly concerned with.voting, may be
interested in a story which was related recently by a former
prisoner of war in Russia. The Russian workers in a factory
were told by the political commissar that they could vote for
Comrade X. They replied that they did not want to vote for him
because they wanted Comrade Y, a fellow worker, who was a war
hero and who held many air force decorations. The next day,
the workers did not receive their daily food ration and so,
of course, they had to vote for Comrade X.
The American people will not surrender their priceless
freedoms for the mess of pottage which is communism. We have
allies of similar courage. Let us not think that they can be
abandoned to a fate worse than death and that we can wait for
the inevitable day for our own land to be a scene of conflict.
We of the South know particularly the ravages of war from the
lips of our own parents or grandparents. Let us strengthen and
sustain our allies and be ready to stand by them if they are
attacked.
From this communist threat there has arisen the need for
an expanded, and accelerated, defense program. The ultimate
decision in both World War I and World War II turned upon the
ability of this country to supply articles of war and food in
adequate quantity to our overseas forces and our allies. The
same will be true in any full scale war, if the communists
choose to follow that route. The conversion of industrial
manufacturing plants and the diversion of commodities .from
civilian to defense purposes creates a shortage of goods and
services. At the same time, the already high monetary return
to workers and farmers is increased because of longer hours of
work, premium pay, and increased output.
107
- 3 Consequently, there is money available in the hands of
consumers but less goods and services are available, so the old
law of demand and supply operates with increased tempo, Prices
are raised by some manufacturers in .expectation of hi^ier costs
for raw materials and labor; others follow suit, and the chain
reaction is under way. Unnecessary buying of goods at the
retail level adds fuel to the fires. The end result is
inflation, which is described in your latest publication, "You
Lose If Inflation Wins,"
In attacking this problem, there are certain direct controls
available to your Government, such as power to control wages and
prices, to allocate materials, and to institute rationing.
However, I want to address my remarks to what might be termed
those indirect controls which are within the sphere of operations
of the Treasury Department. I refer to taxation and the manage
ment of the public debt.
TAXATION
In my judgment, too little public attention has been given
to the remarkable record of Congress from the period of June 25
1950, to January 1, 1951, in the field of taxation. The
American legislative system is often considered by opponents of
the democratic process to be too cumbersome■and time-consuming
for the prompt adjustment to rapidly changing economic conditions.
But once again the Congress has demonstrated that, when time is
of the essence, it can be relied upon for prompt and effective
response to the nation’s fiscal needs.
I want to trace, briefly, the calendar year 1950 in the
taxation. On January 23 , 1950, the President recommended
to the Congress that certain reductions be made in excise taxes,
with that revenue loss to be balanced by the elimination of tax
loopholes.
This program of limited excise tax revision was to facili
tate economic prosperity. In general, it would have reduced
taxes which burden consumers, and would have removed tax in
equities among competing business enterprises. After painstaking
work and deliberation by the Ways and Means Committee, the House
of Representatives passed a revenue bill on June 29 , 1950
following the outbreak of hostilities in Korea, the resulting
need for additional military items raised the Government’s
revenue requirements substantially. Accordingly, on July 25 ,
iyt)0, the President requested that the Senate defer excise tax
revision and convert the House bill into an interim revenueraising measure. The Congress responded with dispatch, and,
4
before recessing in October it enacted a tax bill estimated to
add approximately $4.5, billion annually to Federal revenues.
Furthermore, the Congress directed that excess profits tax
legislation be prepared for consideration upon the reconvening
of Congress on November 2 7 . The W^ys and Means Committee, in
response to the Congressional mandate, began hearings on
November 15. Between that date and January 1, I95I -- a period
of six weeks --- the Congress enacted a profits tax, estimated
to yield approximately $3,3 billion annually.
Those two tax measures added nearly $8.0 billion to the
yield of the Federal tax system. This represents approximately
a 20 percent increase in the revenue producing strength of the
tax system and constitutes an important step in the direction
of financial preparedness.
Never in the history of this country has so much additional
revenue been imposed in such a short period of time.
I take pleasure in paying public tribute for this accomplish
ment to the stalwart leadership of Mr. Doughton of North Carolina,
Chairman of the Committee on Ways and Means, and Senator George
of Georgia, Chairman of the Senate Finance Committee. And, of
course, Tennessee's own Jere Cooper, the second ranking
Democratic member of the Ways anil Means Committee, is always
a tower of strength.
The President's Budget Message, transmitted to the Congress
on Monday of this week, calls for budgetary expenditures of
$716 billion in the fiscal year beginning July 1,1951. This
is a dollar total that has been exceeded only by the three
highest years of World War II. The present budget reflects the
huge expenditures which will be required by the military services.
But revenues, on the other hand, are expected to return only
$55.1 billion, under present laws, during that period. It is
apparent that taxes must again be increased substantially if we
are to avoid serious inflationary pressures. The President's
tax proposals are scheduled to be submitted about the end of this
month. Obviously, the details of such program are not a proper
topic for discussion today since some of the problems are still
being resolved.
In connection with future tax legislation, I was impressed
with the letter of invitation to the Secretary from your
President, Mrs. Kelley, who said that this meeting".... will be
followed by active efforts in the community to create understanding and support of increased taxes...." This is a com
mendable project, and I know that it will be done diligently and
with care. I hope that I may be permitted a gratuitous
- ;5 observation about your task. One area where public information
is less clearly understood than in other fields of taxation
concerns what are variously described as ’'loopholes''/ or
"inequities", in the tax laws.
Some people even call them "sacred cows".
The last session of Congress gave attention to some of these
items, and it is reasonable to suppose that further consideration
might be given to the subject during the present session. These
"loopholes" have become embedded in the tax system and have the,
effect of exempting from Federal income tax certain types of
corporate or individual income. Such favored treatment may have
been justified originally because of the halo surrounding certain
types of enterprises, or because there was but little effect,
moneywise, when rates were negligible in comparison with those
existing today. The present burden of taxation would indicate
the desirability of examining these areas as a source of needed
revenue.
I should like to make another observation, and I know that
it will be accepted in the philosophical spirit which prompts
the thought. I have been impressed by the fact, since I went
to work at the Treasury, that all great public issues engender
spontaneous reactions throughout organized industry, labor, and
farm groups, as well as the public at large. This results,
generally, in a fairly even distribution of people who are"either
for" or "against" a particular issue, whether it be extension
of social security, or extension of the Trade Agreements Act
just to use a couple of illustrations. But when it comes to"
taxation, many seem to be against the ideal If there is any
popular tax, it is the one which the other fellow is to pay,
DEBT MANAGEMENT
At the end of 1939 , the public debt amounted to $*l-7 -l/2
billion. It grew during the World War II period to $280 billion
and now totals approximately $256 billion. At the end of 1939,
the debt of the Federal Government accounted for 23$ of the
"
total debt of the country, whereas the debt now accounts for 5 ($
ot a n debt. Consequently, decisions relating to the public
debt are of vital significance to the economic and financial
weitare' of the entire country. The distribution of that debt
nas an important bearing on the question of inflation. Government
securities held by a commercial bank, for example, can become the
urce of reserves which may form the basis for credit expansion.
-
6
-
If credit is expanded, the money supply of the country is
increased without a corresponding increase in the volume of goods
and services produced. Inflationary pressures on prices are the
result,
. ,
the other hand, that portion of the public debt which
is held by non-bank investors -- whether individuals, business
corporations, or other non-financial institutions -- does not
serve as a basis for increasing the money supply. It has been
the policy of Secretary Snyder to encourage the sale of
Government securities to non-bank investors — and especially to
encourage the sale of Savings Bonds to individuals -- and to use
the proceeds to retire debt held by the commercial banking
■system. During the period from February, 1946 -- when the
Victory Loan was completed --through the end of 1950, $33 billion
of bank-held debt was retired. At the same time, the total* amount
ot hayings Bonds outstanding increased by nearly $10 billion of
which the popular E Bond accounted for $4 billion.
In every year following World War II, the total value of
Savings Bonds outstanding has steadily increased. By the end
,they totalled about $58 billion with approximately
$3 *■ billion being represented by the Series E Bonds. Savings
Bonus constitute 23 percent of the public debt today compared with
5 percent at the end of 1939 .
, ,.???? of., you may have read that, following the outbreak of
hostilities in Korea, the redemptions of Series E Bonds have
exceeded sales. The peak was reached in August, '1956 and there
has been a decline since that time. Presumably, hasty buying
of consumer goods induced cash-in of these bonds, as well as ’
witndrawals irom mutual savings banks, commercial bank time
deposits and savings and loan associations. The conclusion
fu
E Bonds are Influenced by the very same factors
that affect the other types of liquid savings. But whatever
induced owners of these various types of savings to require money
dpes not indicate any trend, in my .judgment, of forsaking the
traditional principle of thrift which is ingrained in the fibre
of Americans. The citizens of this land have been reared'on the
philosophy of saving something "for the rainy day.” As a
consequence, people have saved their money to buy*life insurance,
to have checking and savings, accounts in banks, and to purchase
building and loan shares, These are the older forms of dollar
investments in our economy for the mass of citizens. But the
Savings Bonds program, inaugurated in 1935, also affords another
avenue of thrift for a broad market. Confidence in thrift, which
10Q
u w W
v/
- % is synonymous with confidence in. the future, is being forcefully
demonstrated in the increased response to a stimulation drive
for the sale of Series ”E" Bonds through the Payroll Savings
Plan, For example, one large steel company had 18 percent
employee participation prior to June 25, 1950. Nov the employee
participation is 78 percent. This is typical of a host of
companies throughout the land and these results co.uld have been
achieved only through the personal interest of top management
and labor. |
"
Let me mention a few of'your own companies . Here in
Chattanooga, the Provident Life and Accident Insurance Company
has quadrupled participation and more than ,50 percent of its
600 employees are enrolled * The cooperation shown the Treasury
by both the Chattanooga News-Free Press and The Times has aided
the drive in this city. X would be remiss if I did not extend
the Treasury’s thanks to Mr. D. H. Griswold, the County Chairman,
and Mr;. ,J. .Burton Frierson, J r ., "the Regional Payroll Savings
Chairman.
_
The General Shoe Corporation at Nashville has also compiled
an excellent record in Payroll Savings, The achievement of '
i m participation among the employees of B . F, Goodrich Company
Plant at Clarksville and of 99 percent participation by the
Army’s General Depot at Memphis is certainly outstanding.
I might add that, during the Payroll Savings Drive last
Fall, 152 Tennessee firms not previously using the Plan adopted
and installed it'for the first time. Eleven of these were in
this area.■ These facts indicate a genuine interest in the
advantages of the Plan.
In conclusion, I would summarize by saying that there is
a bundle of sticks, which together constitute a powerful weapon
against inflation. There are direct controls, such as wage and
price controls, rationing and allocations, as well as indirect
controls, such as higher taxes and saving money by consumers
instead of buying unnecessary items. A fine media for thrift
is the Savings Bonds program.
.At this juncture in our national life, it is well to
consider how far we have come since World War II.
Private industry has spent more than $100 billion in a
tremendous program to Increase capacity, to modernize plants,
and to prepare for an expanding economy in the years ahead. The
program Is still strongly under way. Aided by new defense plant
- 8 construction, private industry in 1951 will invest $20 billion
or more in new plant and equipment, according to present
estimates, thus setting another all-time record.
The great postwar expansion program,' financed entirely by
private industry, is a remarkable demonstration of confidence
in the nation's future. We thus have the advantage of a much
stronger and more productive economy than would otherwise have
been possible. Nevertheless, the effort to regain a defensive
power sufficient to turn back the threat of Communist aggression
will be a. very costly onb.
• Looking back over the years of our national history, and
particularly the period following World War II, one major fact
stands out. That is the strength which our system of private
enterprise and representative government has demonstrated in
the face of constantly changing conditions. The obstacles we
have overcome, the progress we have achieved in all lines of
endeavor, the records we have established -- all stand as
a tribute to the character and the good faith of the American
people, and to their demonstrated ability to build an ever
stronger nation.
Today, in this period of world crisis, it is heartening,
to know that people of all interests throughout the nation are
joining in a concerted program to overcome the threat to our
ideals and our freedom. Alert to the dangers which threaten
us, they are ready to work shoulder to shoulder in the unity
of effort which Americans have always demonstrated in times of
national peril. In the light of our accomplishments in the
past, we have every reason to face our task with courage and
confidence.
oOo
TREASURY DEPARTMENT
110
Washington
The following address by Secretary Snyder
before a luncheon meeting of the New York
Board of Trade at the Commodore Hotel *
New York, N. Y., is scheduled for delivery
at 1*30 P.M., ESTT Thursday,'.January 18,
l9?T;"and is for reliasi"at i # f f f .
We are facing critical times. It is especially vital
that under the circumstances, we take every opportunity to
exchange views on urgent national and international problems.
Many of you members of the New York Board of Trade have at
various times come down to Washington to give the Treasury
Department the benefit of your judgment on measures under
consideration in the area of Federal finance. Others of
you have participated in such discussions through committee
memberships. This exchange of views which we have had with
individuals and groups of individuals -•» not only in
Washington, but on various occasions in almost every part
of the country — has been most valuable to the Treasury
making policy decisions'.
More than three-quarters of a century ago, the founders
of the New York Board of Trade set down certain important
goals of cooperative effort. These were --.among others -to provide useful information, to encourage needled legis
lation, to promote civic improvements, and to adjust
differences and misunderstandings on an equitable basis.
The guides to action which were sot down by your founders
are in keeping with the doctrines of our American form of
Government and our American system of free enterprise. It
is in the spirit embodied in these principles that I should
like to discuss with you today some .of the issues which are
involved in our present national task of mobilisation for
defense. I am grateful to the Board of Trade for affording
me this opportunity to speak openly and frankly about the
financial and economic problems that now confront u s .
S-2575
I
need not tell you that the destiny of a nation is not
always decided on the battlefield
nor even in the sometimes
equally hazardous and difficult paths of diplomacy. In any
national emergency, much depends upon our work in the
factories and in the fields
and the keystone of our pro
duction and economic effectiveness is the financial stability
of our country.
Today our Nation is in a state of emergency. For the
second time within less than a decade, we are being called
upon to marshall our great military strength to resist the
forces of aggression which seek to destroy us. Very serious
days are ahead of us. The varnish of Soviet pretense to
peace has worn off, Soviet imperialism is threatening the
structure of world security. We have no time for illusions.
We must be alert -- we must be fully aware of the peril -and we must know wherein the hazard lies.
The danger we face is all the more menacing because of
the sinister nature of the campaign which the aggressors are
waging. This campaign is typical in most respects of all
the campaigns of Imperialist dictators, but the Soviets
have added some stratagems of their own.
The Moscow plan is one of arousing hatreds — nationality
against nationality, class against class, creed against creed -to bring about mutual destruction of those peoples on whom
they cannot count to play the Moscow game. Here in America,
the Communis&gaggressors, through their agents and propagandists
seek to stir up suspicion and strife among us — and so to
create disunity.
It is their theory that if a democracy is subjected to
enough of their propaganda of confusion, its people will be
unable to act swiftly and confidently if attacked, A first
step which wo must take in defense against such strategy,
obviously, is to see through the smokescreen of propaganda,
to expose their lies, and to meet their threats with a solid
front of strength which is at once spiritual, economic and
military.
111
- 3 -
Determined efforts and concentrated energy are needed
to gain this goal. Yet, at the same time, we must maintain
the basic stability and productivity of our domestic economy.
Public policies today, in every area of domestic
endeavor -- fiscal and otherwise -- must be so designed as
to strengthen the sinews of our productive power. We must
plan in such a way as to avoid any measures -- however well
adapted they may seem to a specific purpose -- which would
undermine the ability of the American economy to meet the
tremendous demands which are being made upon it,
The Secretary of the Treasury has far-reaching responsi
bilities in the formulation of fiscal policy to meet the
financing needs of our Government, To fulfill these responsi
bilities adequately, it is necessary tp have the.counsel and
aid of the most able financial and economic minds of our
country. The successful merging of revenue measures and
borrowing programs in such a way as to make the most
effective contribution to the productive power of the Nation
is one of the most difficult and most important problems on
the domestic front.
One of the most serious threats to the strength of our
defense economy is undoubtedly inflation. And it is a threat
which could develop into disaster.
The essence of inflation is the uncontrolled spiraling
of prices and wages. There have been manifestations of this
economic disease in every period of war or defense effort
of this country and of all countries. Our defense program
today presents the same hazard.
The effects of pronounced price instability are diffused
in many directions. One o.f the most dangerous results is
that mobilization itself is handicapped through both direct
and indirect Influences. Far-reaching inequities arise from
the inflationary process in the uneven distribution of income
and profits. The defense burden is inequitably distributed
among^groups and communities by inflation. We lose productive
efficiency. Inflation feeds the very fires of controversy.
- k -
To keep inflation in check, then, is the first need in
our defense undertaking. An we transfer a great portion of
our. productive power from civilian to military output, and
so reduce the supply of civilian goods, we crnst put brakes
•on the purchasing power of consumers. This means that a
substantial part of both business and personal incomes must
be diverted from the consumer markets. The alternative of
allowing prices to move higher and higher would vitally
damage the defense effort.
Without question a most effective over-all fiscal
measure for avoiding the evils of deficit financing, and
thereby combating an inflationary spiral in prices is a
revenue system which enables the Government to pay its cur
rent bills out of current income. No one welcomes heavy
taxes. But in a time of unprecedented national danger like
the present, I am certain that all groups of our population
will soon realize that very much higher taxes -- for them
selves, as well as for others -- are a necessary defense
measure.
.
|
iRlKl I
While adequate revenues are an essential safeguard
against the development of inflationary tendencies, they
cannot do the job alone. Measures for allocating essential
materials have been adopted in order to assure priority for
our military needs with'Qut increasing the strain on the price
structure. Selective credit controls such as those embodied
in the Defense Production Act passed by the Congress last
July are also of definite help. Other measures of demonstrated
effectiveness in curbing inflationary tendencies, such as
price and wage controls, are under consideration and will
assuredly be adopted soon.
You will note that I have not included the use of
fractional increases in interest rates on Government
securities as one of the measures of effectively controlling
inflation. The Treasury is convinced that there is no
tangible evidence that a policy of credit rationing by means
of small increases in the interest rates on Government borrowed
funds has had a real or genuine effect in cutting down the
volume of private borrowing and in retarding inflationary
pressures. The delusion that fractional changes in interest
rates can be effective in fighting inflation must be dispelled
from our minds.
- 5 -
112
In the absence of new legislation, the Federal deficit
will amount to $1 6 .5 billion in the fiscal year 1952 ,
This deficit is a result largely of our defense require
ments. In non-defense spending,- as the President has noted,
the only major new public works projects included in the Budget
are those directly necessary to the defense effort. Con
struction of many public works projects n o w under way has
been substantially- curtailed.' Many other 'activities have:"
been-abbreviated.
,
j
The revenue requirements which the defense situation - •
'
demands need no comment. These requirements can be met
without, damage to the economy if our citizens have mutual
willingness to make the necessary sacrifices.-':
Along with adequate revenues and specific controls ’
required for curbing price and wage rises, there is a
weapon of great importance available to ud for keeping
inflationary forces under control. That is a debt manage
ment program which is directed toward placing the largest
•
possible proportion of Federal securities in the hands of
nonbank investors — individuals, insurance companies,
mutual savings banks, and other investors outside the
banking system -- and reducing the proportion of Federal
securities held by commercial banks and Federal Reserve Banks.
This program is a powerful weapon in combating inflation.
There seems to be a lack of sufficient public knowledge or
understanding of what the Treasury has achieved in this
area during the postwar period. It should be pointed out,
therefore, that as a result of specific Treasury debt manage
ment policies, holdings of Government securities by private *
non-bank investors have increased substantially since the
end of the war, and have reached an all-tii^e peak during the
last half of the calendar year 1950. This activity has been
accompanied by a decline in the holdings of the commercial
banking system, which reached new postwar lows during the
last half of 1^50. Three years ago the public debt was the
same as it is now. B u t •the Government security holdings of
the commercial banking system have-dropped nearly $10 "billion;
and approximately $4 billion of this reduction took place
during 1950 .
'
-
6
-
The importance of this anti-inflationary accomplishment
can not be overestimated. This reduction in the money supply
of the country holds particular significance at the present
time when it is vitally important to the well-being of the
economy that the inflationary potential of commercial bank
assets be kept at a minimum.
There are two other important matters relating to debt
management policy which hold particular interest at the
present time and which have been given extensive consideration
in the financial community and elsewhere in recent months.
The first is the place of savings bonds in the Government
financing picture, and the actions that will be taken to
refund maturing mE ” bonds. The second is the rate of interest
that the Treasury is going to pay on long-term Government
bonds in refunding and new borrowing programs, 1 want to
take up each of these two questions in turn.
A moment ago, I stated that an Important anti-inflationary
action could be accomplished by placing the. largest possible
proportion of Federal securities in the hands of non-bank
investors. As part of the Treasury Departments endeavor
toward this end, the Savings Bond Program has been of
outstanding value. It has been both dramatic and effective.
It has been dramatic because it is sustained on practically
a volunteer service basis. It has been effective because
today, the total of outstanding Savings Bonds represents
approximately 25 percent of the entire Federal debt.
It is really inspiring to know that there are about
$10 billion more Savings Bonds outstanding today than there
were at the end of World War II financing. The tremendous
selling program involved in achieving this remarkable record
is due in the main part to the volunteer efforts of individuals,
business groups and all organizations who have contributed
time, money, and ingenuity to the promotion and sales of
Savings Bonds.
There are only about five hundred paid employees in the
Savings Bond Division of the Treasury. These employees plan
and coordinate the program. The real volume of the work,
however, is done through the generous efforts of those
volunteers who have sold Savings Bonds to ower eighty-five
million purchasers.
-,T +
11 "3
ttk i* . S j
Of the $58 billion total of outstanding Sayings, Bonds,
nearly $35 billion is in ”B ,f Bonds. This is’a noteworthy
accomplishment — for no one would have been rash, enough
to predict at the end of World War II hostilities that five
years later there would be a, $^ billion increase in the total
of outstanding nE M Bonds. Most of us were sure in 19^5 ’•/
that there would be a heavy cashing of Savings Bonds as soon
as war scarcities and restrictions were over. On the
contrary, however, the "E*1 Bond total, has gone up every year
because of the organized promotion by volunteers in bringing
the merits of the Savings Bond investment to the attention
of the public. As a matter of fact, in the calendar year
just ended, the volume of ,!E U Bonds outstanding rose by
three-quarters of a billion dollars, notwithstanding the fact
that there were increases in redemptions as a result of the
scare buying immediately following the outbreak of the
Korean crisis. It is interesting to observe in this con
nection that the redemption of "E" Bonds -- in relation to
the amount outstanding
was less percentagewise than
other comparable forms of savings. So it becomes readily
apparent that the Savings Bond is, in fact, a very popular
form of savings.
It was this last fact that led to the conclusion on
our part, after consulting with many individuals and business
groups, that the Treasury should continue the Savings Bond
Program after World War II a 3 a major effort to encourage
the promotion of thrift. It is this same conclusion that
leads us to announce that the Treasury.will continue to offer
the ME,f Bond, in its present formr to the public as a Defense
Bond during the mobilization period. The aim now is not
only to promote thrift, but to act as an anti-inflationary
force and to help further distribution of the ownership of
the public debt.
#
As you know, beginning in.May.of this year, a portion
of the Savings Bonds bought during the war years will mature,
While some of the holders of these bonds may desire to
cash them úpqn maturity, it is our belief that the majority
will desire td^continue their investment in United States
Savings Bonds, 'Therefore, the Treasury is adopting the
following plan for-J^andling the maturing bonds. The holder
may have his choice ofVv one, accepting cash if he so
-
8
-
desires; two, continuing to hold the present bond with an
automatic Interest-bearing extension; and three, exchange
his bond for a current income savings bond of Series G.
Under Option 2, the bond would be automatically ex
tended, bearing interest at the rate of 2 -1/2 percent for
the first seven and one half years and interest at a rate
sufficient thereafter so that the aggregate return for the
10 -year extension period will be 2 .9 percent compounded.
The term of the extension would be limited to 10 years after
maturity. The existing option of paying taxes on interest on
Series E bonds currently or at maturity would be retained.
Necessary Congressional legislation to authorize this option
will be requested immediately. Once the plan is placed in
effect, it will apply to all outstanding E bonds as they
mature, and will apply by' right of contract to all new
Series E savings bonds that are issued.
These decisions with respect to the refunding of
savings bonds and their future place in the Federal securities
structure have been reached after long deliberation and
extensive consultation. Among those who feave given us the
benefit of their, thought and judgment arc representatives
of the Federal Reserve System, which has done such a
magnificent job in facilitating the smooth functioning of
the savings bond mechanism throughout the Program?s entire
history.
Almost a year ago, at the annual Fiscal Agency Conference
held in San Francisco, various alternatives with respect to
the refunding of savings bonds were fully discussed by
representatives of. the Federal Reserve System and the
Treasury. Following that conference, other groups and
individuals continued to meet with officials of the Treasury
and to give time and thought to the refunding measures which
would be in the best interests of both the Government and
the bondholders. The program which I have outlined to you
today is the result of this cooperative effort.
As soon as
the necessary Congressional legislation is completed, full
details of the extension Savings Bonds Program will be re
leased to the public. I believe that we have adopted a good
program.
114
- 9 How let us go on to the subject of interest rates. It
Is my view that a 2 -1/2 percent rate of interest on long
term Treasury bonds is a fair and equitable rate — to our
Government which is borrowing the money, to the purchaser of
Government bonds who is lending the money, and to the tax
payer who has to pay the interest on the money borrowed.
The 2-1/2 percent rate of interest on long-term Govern
ment securities is an integral part of the financial structure
of our country. During the past ten years -- a period in
which we fought our most costly war and made a most extensive
reconversion to peacetime activities -- the 2 -1/2 percent
rate has become a most important influencing factor in
financial policy in the country. It dominates the bond
markets — Government, corporate, and municipal. Moreover,
it dominates the operations of financial institutions. Most
of these have already adjusted themselves to the 2 -1/2 percent
rate -- and after so doing, have become more prosperous
than ever before.
Most life insurance companies, for example, have changed
the guaranteed interest provisions of their pew policies during
the past decade to conform with the 2 -1/2 percent rate, so
that today about 85 percent of the new life insurance
premiums received by insurance companies are on policies
written at interest rates of 2-1/2 percent or less. Mutual
savings banks also have tied their current interest rate on
funds of depositors to the Government rate.
Any increase in the .2-1/2 percent rate would, I am
firmly convinced, seriously upset the existing security
markets -- Government, corporate, and municipal.
We cannot allow this to happen in a time of impending
crisis, with the heavy mobilization program to finance. We
cannot afford the questionable luxury of tinkering with a
market as delicately balanced as the Government security
market. Now is no time for experimentation.
We have not hesitated to draft our youths for service
on the battlefront, regardless of the personal sacrifice
that might be entailed. Neither can we hesitate to marshal
the financial resources of this country to the support of
the mobilization program on a basis that might, in some
10
instances, require a degree of profit sacrifices.
In the firm belief, after long consideration, that the
2 -1/2 percent long-term rate is fair and equitable to the
Investor, and that market stability is essential, the
Treasury Department has concluded, after a joint conference
with President Truman and Chairman McCabe of the Federal
Reserve Board, that the refunding anl new money issues will
be financed within the pattern of that rate,
When I came to. the Treasury in June 19^6, the war
had been over less than a year, and war financing had only
recently been completed. I felt at that time that stability •
in the Government bond market during the transition period
was of 'vital importance, As the. economy became more stabilized,
the Treasury used more flexibility In its debt management
program by allowing short term rates to increase gradually.
Later, beginning with the crisis in Korea, however, the
considerations calling for stability In the Government bondmarket became tremendously important, The credit of the
United States Government has become the keystone upon which
rests the economic structure of the world. Stability in our
Government securities is essential.
I do not think that we can exaggerate when we emphasize
these matters. I think they are basic to our national sur
vival .
I have outlined for you the highlights ,of our financial
mobilization program. I believe that with vigorous, cooperative
effort, we can make it a successful one.
The democratic processes and the free Institutions of
our country enable us to do j\ist that. We are a Nation of
strong individuals, united in our belief in .American
principles and in our determination to defend them. We do
not expect - • and we do not wait to be told what to think
and what to do. We will not govern our actions according
to decrees which represent thinking done for us by someone
else. Every American citizen today is searching his mind and
heart for answers to the challenge of aggression. We do this
because we know that in a free Nation such as ours, decisions
on matters of national import must be made by the citizens
themselves.
115
^
mdim
11
The formulation of a successful policy of financial
mobilization is not easy. It must, of necessity, be one
that will require sacrifices from every one of us. Let me
make on thing clear. Even a short period of weakness in the financial stability of the United States could mean a
generation of disaster to us and to the world.
The Communist regime knows this - - a n d ever since the
close* of the Second World War, it has sought to undermine
the structure of peace and stability we have tried so
patiently, and with so marked a degree of success, to help
build in the free world. led imperialism has taken the
offensive against the free world in almost every area of
human cooperation where civilization might again be made
secure. It has coupled with a bellicose avowal of peace the
most flagrant and most insidious forms of human sabotage.
Let there be no mistake about it. We want real peace in
this world. To seek this, we set up a forum in which men
might work opt their differences and arrange for solutions
of common problems. We tried very earnestly to win an
honorable peace across the council table. But the Russians
have tried to make a mockery of the vital work and procedure
of the United Nations, While we have tried to restore
economic and financial stability to nations suffering from
the ravages of war, the Soviet Union has sought to dissipate
the effects of our unprecedented a$& successful aid to
free nations and are now trying to destroy the fruits of our
aid with the blight of urgent and costly need for Selfdefense .
As the economic and financial stability of our friends
and allies in Western Europe became more certain -- Soviet
Imperialism became bolder and laid down a barrage of direct
and indirect assaults on the free world*
It is but a natural reaction to hope> in an emergency,
that we can preserve our freedom, and save ourselves from
danger, without sacrifice. Any such hope runs counter to
all of htmian experience. Readiness to sacrifice for freedom
Is the first requisite of life in a free land.
12
I have every confidence that whatever sacrifices are
required of our people to repel the aggressors will
be willingly, earnestly, and confidently made.
What we face is obvious.
What we must do is plain.
We shall diligently continue our efforts with free
nations to help establish peace and prosperity in the world.
But in the meantime, we shall face realities — face them
in the knowledge that our pride in America *s past and
present, and our confidence in her future, permit no passive
acceptance of the dictates of a foreign aggressor.
We arc going ahead with our military and our financial
mobilization measures to whatever extent the unfolding •
disclosures of Communist intentions make necessary. In
justice to ourselves and to all other believers in freedom,
we can follow no other course.
000
MEDIATE RELEASE
January 17» 1951
The Bureau of Customs announced today the opening of the global
quota of
20 pounds of cotton having a staple of 1-1/8 inches
or more but less than l-ll/l6 and the reopening of the Mexican quota
for 8,8U5,976 pounds of cotton less than 1-1/8 inches staple, at
12:00 noon, e.s.t., on February 1, 1951*
The Mexican quota of 8,883,259 pounds of cotton less than 1—1/8
inches in staple length, established by Presidential Proclamation
for the year beginning September 20, 1950, opened on that date and
16,996,310 pounds were presented for entry. Of this amount, approx
imately 52 percent was authorized release, which amount filled the
quota. The Bureau records show that the consumption entries cover
ing the 16,996,310 pounds presented on September 20, 1950, were all
canceled except entry for 37>283 pounds. This results in the Mexican
short-staple quota being open in the amount of 8,8U5>976 pounds at
this time. Arrangements have been made for the presentation of
entries of such cotton at 12:00 noon, e.s.t., or that time equivalent
in other time belts, on February 1, 1951*
The collectors of customs, on receipt of authorizations from the
Bureau as to the amounts of cotton under the global Quota^ud under
the Mexican quota permitted release under each entry,
immediately
notify the importer of record in each instance and advise him that
such authority for the release of the cotton within its respective
quota will be null and void after the expiration of thirty days from
the date of the Bureau*s notice to the collector, unless the c°t t o Q ^
has been released by Customs for consumption. She merchandise
be deemed released when the permit therefor has been presented to
the customs officer in charge at the place of deposit of the merchan
dise and accepted by him, whether or not the permit bears the endorse
ment provided for in section 8.38 of the Customs Regulations of 19u3>
as amended.
treasury
Information
departm ent
Service
WASHINGTON, D .C
IMMEDIATE RELEASE,
Wednesday, January 17, 1 9 5 1 «
s-2 576
The Bureau of Customs announced today the opening of
the global quota of 45,656,420 pounds of cotton having a
staple of 1 -1/8 inches or more but less than 1 -11/16 and
the reopening of the Mexican quota for 8,845,976 pounds of
cotton less than 1 -1/8 inches staple,, at 12:00 noon, e.s.t.,
on February 1, 1951.The Mexican quota of 8 ,883,259 pounds of cotton less
than 1 -1/8 inches in staple length, established by
Presidential Proclamation for the year beginning September 20,
1950, opened on that date and 16 ,996,310 pounds were presented
for entry. Of this amount, approximately 52 percent was
authorized release, which amount filled the quota. The
Bureau records show that the consumption entries covering the
16,996,310 pounds presented on September 20, 1950 , were all
canceled except entry for 37,283 pounds. This results in
the Mexican short-staple quota being open in the amount of
8,845,976 pounds at this time. Arrangements have been made
for the presentation of entries of such cotton at 12:00 noon,
e.s.t., or that time equivalent in other time belts, on
February 1 , 19 5 1 .
The collectors of customs, on receipt of authorizations
from the Bureau as to the amounts of cotton under the global
quota and under the Mexican quota permitted release under
each entry, will immediately notify the importer of record
in each instance and advise him that such authority for the
release of the cotton within its respective quota will be
null and void after the expiration of thirty days from the
date of the Bureau's notice to the collector, unless the
cotton has been released by Customs for consumption. The
merchandise will be deemed released when the permit therefor
has been presented to the customs officer in charge at the
place of deposit of the merchandise and accepted by him,
whether or not the penult bears the endorsement provided for
in section 8.38 of the Customs- Regulations of 1943 , as amended.
0O0
2
p
current changes in the phototube circuit are formed, into
suitably shaped pulses and applied to an electronic counting
mechanism.
Each package received from Reserve Banks contains 100
halves of currency notes.
If the machine proves this count,
the package is automatically routed to an acceptable bin.
If the count is not verified, the package is rejected, and
adjustments made.
.. ,
,
Ahr/6*&/
Representatives of the.Bureau of Standards are today
explaining the development and operation of the machine to
members of the American Institute of Electrical Engineers
attending the winter general meeting of the Institute in
New York.
0O0
/ / A Mt. 1 S T
RELEASE MQRN-iffq NEWSPAPERS,
tfodteoeda,:/-, January 2j , 19 5 1 .
s-^o-7'7
Secretary Snyder announced today that the Treasury
Department will shortly place in use a battery of electronic
machines for counting unfit paper currency retired from
circulation.
The machines were developed by the Pfational
Bureau of Standards, working closely with Treasury
representatives in tests to determine their practical
effectiveness.
Each machine will count more than 500 pieces of currency
a minute, and twenty-fiye are to be installed.
They will
replace about eighty of the force now employed by the Treasury
in hand-counting one-dollar silver certificates, which
constitute over 80 percent of the unfit United States
currency received for redemption.
Secretary Snyder said that use of the machines will
save taxpayers about a quarter of a million dollars
annually.
This economy, he pointed out, is another step in
the Treasury’s overall Management Improvement Program.
Unfit paper currency retired from circulation is cut in
half by Federal Reserve banks and branches before shipment
to the Treasury.
Packages of 100 cut bills are automatically
fed into the machine and clamped to a revolving spindle. The
ends of the currency are released as they come around in turn
and are swung outward individually by a jet of air, which
breaks a light beam actuating a phototube. The resulting
TREASURY DEPARTMENT
Information
Service
WASHINGTON. D .C .
1
RELEASE
11 A . M . EST
Tuesday, January 23, 1951
S-2577
Secretary Snyder announced today that the Treasury
Department will shortly place in use a battery of electronic
machines for counting unfit paper currency retired from circu
lation. The machines were developed by the National Bureau
of Standards, working closely with Treasury representatives
in tests to determine their practical effectiveness.
Each machine will count more than 500 pieces of currency
a minute, and twenty-five are to be installed. They will
replace about eighty of the force now employed by the Treasury
in hand-counting one-dollar silver certificates which con
stitute over 80 percent of the unfit United States currency
received for redemption.
Secretary Snyder said that use of the machines will
save taxpayers about a quarter of a million dollars annually.
This economy, he pointed out, is another step in the Treasury’s
overall Management Improvement Program.
Unfit paper currency retired from circulation is cut in
half by Federal Reserve banks and branches before shipment
to the Treasury. Packages of 100 cut bills are automatically
fed into the machine and clamped to a revolving spindle. The
ends of the currency are released as they come around in turn
and are swung outward individually by a jet of air, which
breaks a light beam actuating a phototube. The resulting
current changes in the phototube circuit are formed into
suitably shaped pulses and applied to an electronic counting
mechanism.
Each package received from Reserve Banks contains 100
halves of currency notes. If the machine proves this count,
the package is automatically routed to an acceptable bin.
If^the count is not verified, the package is rejected, and
adjustments made.
Representatives of the National Bureau of Standards are
today explaining the development and operation of the machine
to members of the American Institute of Electrical Engineers
attending the winter general meeting of the Institute in
Rev York.
possession of the party making the film» It does not prove continued owner
ship, which ownership as well as proof of destruction would necessarily have
to be established to the satisfaction of the Secretary of the Treasury before
a duplicate United States security could be issued under the statuteo
c r* r
RELEASE
mJi
IMMEDIATE RELEASE,
., January^^, 1951«
S e c r e t l y Snyder announced today the issuance of new regulations per
mitting the film recordation of United States and foreign securities by
various classes of corporations, associations, partnerships, and individuals
who handle such securities in the ordinary course of business# The new
regulations amend previous regulations, and will aid financial institutions
in the preservation of their records in the event that securities in their
possession are lost or destroyed#
Under former regulations, only banks and banking institutions were
authorized to make confidential film records of United States securities,
checks, warrants, and paper money. Film records of foreign securities were
not authorized#
The new regulations extend the authority to make confidential film
records of United States securities to members of established stock exchanges
and to investment bankers and dealers in Government securities who are members
of either the Investment Bankers Association or the National Security Dealers
Association#
Under the amended regulations confidential film records may also be made
of notes, bonds, obligations, or other securities of any foreign government,
bank, or corporation, by the same classes of individuals and institutions
authorized to make film records of United States securities, if these indi
viduals or institutions handle foreign securities in the ordinary course of
business#
Only film records of a type which can be projected upon a screen are
authorized# Prints, enlargements, or other reproductions may not be made
unless special permission has been obtained from certain designated Treasury
officials# Such permission may be granted by the Secretary of the Treasury,
the Treasurer of the United States, the Commissioner of the Public Debt, and
the Chief of the Secret Service#
lifhile the amended regulations give authority to make film records of
United States securities to various classes of corporations, associations,
partnerships, and individuals who may hold such securities in their possession,
Treasury Department officials stated that such film records will not in and
of themselves be sufficient to establish ownership as a basis for the issue
of duplicate United States securities under the Act of July 8, 1937, as amended
(U.S.C#, title 31, section 738a).
That statute requires proof of ownership,as
well as proof of loss, theft, or destruction in the case of registered securities
and proof of destruction in the case of bearer securities before maturity or
call for redemption. In many instances it is required that the owner file a
bond of indemnity. A film record establishes only the fact that at the time
the record was made, if that date ©an be ascertained, the security was in the
treasury
Information
departm ent
Service
Wa s h i n g t o n , d .c .
123
IMMEDIATE'RELEASE,
Wednesday, January
, 1951.
S-2579
Secretary Snyder announced today the issuance of new regu
lations permitting the film recordation of United States and
foreign securities by various classes of corporations, associa
tions, partnerships, and individuals who handle such securities
in the ordinary course of business. The new regulations amend
previous regulations, and will aid financial institutions in the
preservation of their records in the event that securities in
their possession are lost or destroyed.
Under former regulations, only banks and banking institutions
were authorized to make confidential film records of United
States securities, checks, warrants, and paper money. Film
records of foreign securities were not authorized.
The new regulations extend the authority to make confidential
film records of United States securities to members of established
stock exchanges and to investment bankers and dealers in Govern
ment securities who are members of either the Investment Bankers
Association or the National Security Dealers Association.
Under the amended regulations confidential film records
may also be made of notes, bonds, obligations, or other
securities of any foreign government, bank, or corporation, by
the same classes of Individuals and institutions authorized to
make film records of United States securities, if these indi
viduals or institutions handle foreign securities in tne ordinary
course of business.
Only film records of a type which can be projected upon a
screen are authorized. Prints, enlargements, or other repro
ductions may not be made unless special permission has been
obtained from certain designated Treasury officials. Such
permission may be granted by the Secretary of the Treasury, the
Treasurer of the United States, the Commissioner of the Public
Debt, and the Chief of the Secret Service.
While the amended regulations give authority to make film
records of United States securities to various classes of
corporations, associations, partnerships, and individuals who
may hold such securities in their possession, Treasury
Department officials stated that such film records will not in
- 2 and of themselves be sufficient to establish ownership as a basis
for the issue of duplicate United States securities under the
Act of July 8 , 1937, as amended (U.S.C., title 31, section 738a).
That statute requires proof of ownership, as well as proof of
loss theft, or destruction in the case of registered securities
and proof of destruction in the case of bearer securities before
maturity or call for redemption. In many instances it is
required that the owner file a bond of indemnity. A film record
establishes only the fact that at the time the record was made,
if that date can be ascertained, the security was in the
possession of the party making the film. It does not prove
continued ownership, which ownership as well as proof of
destruction would necessarily have to be established to the
satisfaction of the Secretary of the Treasury before a duplicate
United States security could be issued under the statute.
oOo
/
REIMSE, MORNING NEWSPAPERS,
Tuesday, January 23» 1951-
fb* Secretary at the Treasury announced last evening that the tenders Tar
P, 000,000,000, or thereabouts, of 91-day treasury bills to be dated January 2$ and to
mature April 26, 1951, which were offered on January 18, were opened at the Federal Re
serve Banks on January 22*
the details of this issue are as follows j
Total applied for - $1,71*8,818,000
Total accepted
- 1,003,199,000
Average price
(includes $121,892,000 entered on a
non-competitive basis and accepted in
full at the average price shown below)
* 99.6U9 Equivalent rate of discount appro«. 1*389$ per annua
Range of accepted competitive bids*
High
low
- 99*658 Equivalent rate of discount appro*. 1*353$ per annua
- 99*6M
«
* «
•
«
1*393$ ■
*
(98 percent of the amount bid for at the low price was accepted)
Federal Reserve
District
Total
Applied for
Total
Accepted
Boston
Hew fork
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
it* Louis
Minneapolis
Kansas City
Dallas
San Francisco
I 21,665,000
1,283,117,000
27,11*0,000
51,71*8,000
6,557,000
19,1*80,000
170,275,000
20,91*0,000
6,897,000
25,879,000
38,983,000
76,137,000
|
$1,71*8,318,000
$1,003,199,000
TOTAL
17*109,000
661*,2l5,ooo
12,11*0,000
5i,Ht6,ooo
6,556,ooo
19,1*36,000
113,851,000
17 ,1*61*,000
6,553,000
25,871,000
28,787,000
1*0,071,000
release MORNING NEWSPAPERS,
fpnftsday. January 23 5 1951
IOC
S-2578
The Secretary of the Treasury announced last evening that the
tenders for $1 ,000,000,000, or thereabouts, of 91-day Treasury bills
to be dated January 25 and to mature April 26, 1951 , which were
offered on January 18, were opened at the Federal Reserve Banks on
January 22.
The details of this issue are as follows:
Total applied for - $1,748,818,000
Total accepted
- 1,003,199*000 (includes $121,892,000
entered on a non-competitive
basis and accepted in full
at the average price shown
below)
Average price
- 99.649 Equivalent rate of discount approx.
1«389$ Pei1 annum
Range of accepted competitive bids:
- 99*658 Equivalent rate
1 .353$
- 99 .648 Equivalent rate
1 .393$
High
Low
of discount approx.
per annum
of discount approx.
per annum
(98 percent of the amount bid for at the low price was accepted)
federal Reserve
[District
Boston
Pew York
¡Philadelphia
Cleveland
Richmond
¡Atlanta
Chicago
Total
Applied for
$
2 1 ,665,000
1,283,117,000
27.140.000
,
51 , 7^8,000
6 557,000
19.480.000
170,275,000
20.940.000
6 ,897,000
25.879.000
38 .983.000
76.137.000
pt. Louis
Minneapolis
Kansas City
Balias
Ian Francisco
TOTAL
$ 1 , 7^8 , 818,000
0O0
Total
Accepted
$
1 7 ,109,000
664.215.000
12.140.000
51.146.000
6 ,556,000
19.436.000
.
113 851.000
17.464.000
6,553,000
25 .871.000
28 .787.000
40.071.000
$ 1 ,003 ,199,000
- 3 -
any State, or any of the possessions of the United States, or by any local tax
ing authority.
For purposes of taxation the anount of discount at which
Treasury bills are originally sold by the United States shall be considered to
be interest.
Under Sections 1*2 and 11? (a) (1) of the Internal Revenue Code,
as amended by Section 11$ of the Revenue Act of 19U1, the anount of discount at
which bills issued hereunder are sold shall not be considered to accrue until
such bills «ban be sold, redeemed or otherwise disposed of, and such bills are
excluded from consideration as capital assets.
Accordingly, the ovmer of
Treasury bills (other than life insurance companies) issued hereunder need 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. 1*18, as amended, and this notice, presents
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
-
mmm
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 shal
be final.
Subject to these reservations, non-competitive tenders for ;200,000
or less without stated price frcra any one bidder will be accepted in full at tty
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
Reserve Bank on February 1 , 1951
, in cash or other immediately ava|
---------PS
able funds or in a like face amount of Treasury bills maturing J e b r u a r y l ^
Cash and exchange tenders will receive equal treatment.
Cash adjustments will
made for differences between the par value of maturing bills accepted in exchaiJ
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 anjj
special treatment, as such, under the Internal Revenue Code, or laws amendatory
or supplementary thereto.
gift
The hills shall be subject to estate, inheritance,
or other excise taxes, vrhether Federal or State, but shall be exempt f
all taxation now or hereafter imposed on the principal or interest thereof by
TREASURY DEPARTMENT
Washington
for release, morning newspapers,
Thursday, January 25, 1951
------ -
fisW
The Secretary of the Treasury, by this public notice, invites tenders for
$1,100,000,000
, or thereabouts, of
^ 9 1_.~day Treasury bills, for cash and
in exchange for Treasury bills maturing
February^, ,12£L--- » to ^
issued on
a discount basis under competitive and non-competitive bidding as hereinafter
provided.
will mature
interest.
The bills of this series vail be dated .February!, l£5i----- > and
May 3, 1951
They
vfiil
___¥'hen the face
Vdl1 be payable Vath°ut
and in denominations of
be issued in bearer form only,
)1,000, $5,000, $10,000, $100,000, $500,000, and $1,000,000 (maturity value).
Tenders vili be received at Federal Reserve Banks and Branches up to the
closing hour, two o'clock
p.m.,
Eastern Standard
time »Monday,
January 29, 1951.
lenders vili not be received at the Treasury Department, Washington.
Each tenderj
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 tta
decimals, e. g., 99.925.
Fractions may not be used.
It is urged that tenders
be made on the printed ferns and forvarded in the special envelopes which will
be supplied by Federal Reserve Banks or Branches on application therefor.
Others than banking institutions vri.ll not be permitted to submit tenders
except for their own account.
Tenders will be received without deposit from
incorporated banks and trust companies and from responsible and recognized
dealers in investment securities.
Tenders fron others must be accompanied
by payment of 2 percent of the face amount of Treasury bills applied for,
treasury
departm ent
V
Information
Service
WASHINGTON, D .C .
130
REIEASE MORNING NEWSPAPERS, ■
'
Thursday, January 25, 1951.
S-2580
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 February 1,
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 February 1, 1951* and will mature May 3* 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, January 29 , 1951. 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
Iamount 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
auy one bidder will be accepted in full at the average price (in
- 2 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 February 1, 1951, in cash
or other immediately available funds or in a like face amount of
Treasury bills maturing February 1, 1951- Cash and exchange tenders
will receive equal treatment. Gash adjustments will be made for
differences between the par value of maturing bills accepted in
exchange and the issue price of the new bills.
The income derived from Treasury bills, whether interest or gain
from the sale or other disposition of the bills, shall not 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 194-1, the amount of discount at which bills
issued hereunder are sold shall not be considered to accrue until
such bills shall be sold, redeemed or otherwise disposed of, and
such bills are excluded from consideration as capital assets.
Accordingly, the owner of Treasury bills (other than life insurance
companies) issued hereunder need include in his income tax return
only the difference between the price paid for such bills, whether
on original issue or on subsequent purchase, and the amount actually
received either upon sale or redemption at maturity during the
taxable year for which the return is made, as •ordinary gain or loss.
Treasury Department Circular No. 4-18,' 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
THE UNDER SECRETARY OF THE TREASURY
X v W
In Hickory, N. C., Secret Service agents arrested State Senator
Max C, Wilson on July 6 for embezzlement of $33*000 in National Farm
Loan Association funds*
Wilson had served as vice-president of the
National Farm Loan Association of North Wilkesboro, N. C., and was
the authorized attorney for the preparation of deeds, contracts and
other papers for the organization,^Hg-nyat^prominen-Uin-civic affaires,
h&d served ac a Roprflf*Hatad±ve In thd 3 U b e Legislatejte and was
Splirit^r
from
193U
Lhi-uogh 1940*
He-wa*
-State
uf lilt, arrest. ^ Wilson pleaded guilty July 19 at
Ashieville, N. C., and was sentenced to serve 3 years in prison.
Convictions resulted in 2,803 eases of all types, or in 98.4 per
cent of the cases that went to trial.
Prison sentences aggregated 3,467
years, and additional sentences of 2,893 years were suspended or pro
bated.
Fines in criminal cases totaled $141,465*70.
Shades of the pioneers were raised by one forgery investigation
involving two aged U. S. Army Apache Indian Scouts, retired* -j'1"’™
who served under General George B. Cook in pacifying the
j
s'*
Yuma-Mojave Indians in Arizona in 1&7& allegedly forged and cashed a
pension check payable to another retired Apache Indian Scout , Cliarles
Pi rircn-i i Both men are more than 90 years old and live on the Salt River
(Arizona) Indian Reservation*
ife was not prosecuted, but made reimbursement in the full amount' of the
check*
Close cooperation between two Treasury enforcement agencies smashed
a smooth plot by eight people to mulct the Government of thousands of
dollars through false income tax returns.
Special agents of the Secret
Service and the Treasury* s Intelligence Unit discovered that Arthur H*
Lange of Baton Rouge, La., made fictitious income tax returns in which
high exemptions were claimed, resulting in the issuance of refund checks
by the Government.
Lange had the checks mailed to his sister, Aline
Lange Lee, in Los Angeles, California, and subsequently taught her how
to make fraudulent returns for her own profit.
Mrs. Lee involved her
son, two daughters, another brother and two personal friends, who
netted $14,000 from the scheme before they were caught.
All were sen
tenced to prison terms up to three years and were required to make a
refund to the Government in full.
6
- -
Post Office station.
Roach rifled mail-sorting boxes and filled a paper
grocery bag with stolen checks, escaping through the back door*
The trio sorted the checks and threw away those with names Mtoo
hard to spell.fl They added another ex-convict, Lloyd H. Smith, to the
combine, and began to cash the checks#
In South Omaha, Smith and Roach
entered a tavern where Smith forged and cashed one check#
He came out,
donned a different jacket and dark glasses, and reentered the tavern with
another check#
Smith had to wait until the proprietor cashed a stolen check
for Roach, then Smith cashed his second check, posing as the new payee. The
tavern proprietor lost $180 in less than five minutes#
The gang enlisted a woman to cash checks payable to females, and she
put over a fourth check at the same South Omaha tavern#
After the Omaha
Office of the Secret Service cautioned merchants to require good identifi
cation before cashing Government checks for strangers, Dawson was rebuffed
several times in efforts to cash stolen checks and lost his nerve#
ened, Smith burned the uncashed checks.
Fright
Two months later, however, Dawson
and Mitchell stole another check and tried to cash it at the South Omaha
Tavern where they had been so lucky on four occasions.
The proprietor
asked for identification, which the men could not produce.
When they left,
the proprietor noted the license number of Mitchell* s automobile.
Secret
Service agents, working with Post Office Inspectors and Omaha police,
arrested the gang the same night.
Dawson, Smith and Mitchell were each sen
tenced to two years, and Roach to three years, dn the Terre Haute Peniten
tiary#
-5'
prospective recruits, whose names were inscribed on the *checks’1 as
the payees.
Under the check illustration was the caption, ’’This will
represent the amount of pay you will receive if you will enlist in the
Army Reserves*11 One prospect clipped the check illustration from the
green sheet, endorsed the HcbecR” and cashed it at a grocery store*
Secret Service agents seized nearly 1,000 of these counterfeit checks
t
i
g
««■* |
^
*■ ^
and explained the law to the^attomey with a suggestion that he adopt
some other recruitment method.
Forgery of genuine Government checks and bonds continued to be an
important enforcement problem.
During the year the Secret Service com
pleted investigations of 34*191 forged checks worth $2,434,237*08 and
6,739 Gorged bonds* worth $455,753,41*
One case turned up a novel modus operandi by a female check forger.
The woman, mother of two small children, bought a $959 Treasury check
from an acquaintance who had stolen it from a mail box.
She padded her
dress with a pillow and took the check to a pawnshop, posing as an ex
pectant mother.
The hoax was discovered before the check was cashed,
and the woman was arrested, prosecuted and convicted.
In Omaha, Nebraska, four men went on a check-forgery spree with a
boldness which would make most check thieves shudder*
Cleo Dawson,
just released from the Nebraska Men1s Reformatory, stole an income tax
refund check and cashed it in a bank, using a false Social Security
card for identification.
Not content with stealing one check at a time,
Dawson teamed up with two other ex-inmates of the Reformatory, James D.
Mitchell, 27, and Thomas 0. Roach, 24, and they planned a burglary of a
and sentenced in Los Angeles
In Missoula, Montana, a 63-year-old ex-convict charged with making
and passing counterfeit coins, told agents, *,I,m not a hard loser, boys,
but if I admit anything now, with my record, 1*11 die in prison and I
want to avoid that if I can.“
John F. Stubler* s criminal career began
in 1913 when he was sent to the Oregon State Penitentiary to serve from
2 to 20 years for forgery.
Since that time he has spent 31 years in jail
on charges of bootlegging, firsWlegree assault, fictitious checks, white
slavery, grand larceny, first-degree murder, and counterfeiting.
He is
now under indictment on the coin charge.
Another coinerethought a safe haven for a counterfeiting plant would
be the^Tate 1 frunt /¡fescue Mission in Pensacola, Florida.
Um
>
i#u p mlubuMr.
Adam Duzynski, a convicted counterfeiter, got a room at the^fission and
made bogus 50—sent coins late at night, after all the other roomers had
.
1 . ¡§1
retired. The coins were traced to Duzynski by Pensacola police detectives,
who arrested him and found 60 unfinished counterfeits in pockets of his
clothing.
He made a full confession to the Secret Service, pleaded guilty
and was sentenced November 10 to serve three years.
An unusual case in Pittsburgh, Pa., demonstrated the wisdom of the
Federal law which prohibits the printing of photographs or illustrations
resembling paper money or other Government obligations,
A Pittsburgh
attorney who is also an Army He serve officer conceived a novel idea for
recruiting men in the Reserve.
He ordered letter-size green sheets bear
ing a facsimile of a U. S. Treasury check*
The pages were mailed to
States*
Secret Service agents, tracing the three from California, located
Co A #
^
them in Missouri and kept them underA surveillance^^vp,n watching the
r_«vnn f -[-nm n di n 11 i I M1“ I lIIVr *7 "SSe\Twas arrested August 7 while walking
into the woods with his dog, and Mrs* Shew and Parsons were taken into
custody the same day*
All made complete confessions*
Agents captured 44
plates and a quantity of counterfeit notes, with other counterfeiting
paraphernalia*
Later, Parsons ws.s taken to California where he led agents
to a spot near La Honda and dug up the 32 counterfeit plates he had buried
the year before*
The trio was sentenced August 25 in St. Louis, Parsons
to serve six years, Shew five years*
Mrs. Shew was .placed on probation for
three years.
In another California case, two Hollywood counterfeiters set out to
make bogus $1 and $20 bills, but decided a good imitation of a rare postage
stamp would be more profitable*
37>
Nick Petrashkow,
a- toolmaker, and
Narvy L. Persinger, 3S, a sheet metal worker, installed a counterfeiting
plant in a house-trailer near Burbank, California.
During the production
of a number of $20 notes which they considered inferior, the pair read a
newspaper story to the effect that a 24-cent U. S. airmail stamp with an
inverted airplane in the design was worth nearly $4,000.
Immediately they
rented a house in North Hollywood and began to make plates for counterfeit
stamps with the inverted image, which they intended to sell to stamp
collectors*
They achieved a high degree of skill in their plates for the
stamps, but before any of the counterfeits could be marketed the Secret
Service stepped in and seized the whole output.
Both men were convicted
tection matters, but also counterfeiting and forgery cases.
Congress
approved the full request and the men are being recruited.
Counterfeiters and forgers burdened the Secret Service with a
staggering case load averaging 90 cases per agent, as compared to an
accepted norm of 10 to 15 cases*
Agents arrested 513 persons for
counterfeiting offenses and 2635 for forgery and other crimes, and
investigated a total of 47,712 criminal and non-criminal cases, yet
there were 18,260 cases of all types still awaiting investigation as
of December 31*
Seizures of counterfeit bills and coins totaled $1,169,730*79 in
representative value, of which $617,389*24 was passed on retail store
keepers.
The balance was captured by the Secret Service before it
could be placed in circulation*
The trail of one trio of counterfeiters led from California to a
log cabin in the Missouri woods, where the Secret Service ended both
trail and crime by capturing the three and seizing the plant*
Scores
of plates for bogus $5 and $10 bills were made by Melvin G. Parsons, a
foundry worker, who began his counterfeiting career in 1948 in South
San Francisco, California, where he printed notes at the home of Louis
Shew.
Parsons buried 32 plates near La Honda, California, in 1949,
and moved to his home at Crystal City, Mo., where he was later joined
by Mr. and Mrs. Shew.
Parsons and Shew set up another plant in the
isolated cabin near Festus, Mo., at the edge of the Ozark Mountains,
'and resumed the printing of counterfeits, which they passed in several
The attempted assassination of President Truman on
November 1, and the need for increased protection of the
President and Vice-President, highlighted the 1950 yearend report made today to Secretary Snyder by U. E. Baughman,
Chief of the U. S. Secret Service.
Following the November 1 gun battle in which two Puerto
Ricans tried to shoot their way into Blair House and were
shot down by White House 'policemen and Secret Service agents,
Chief Baughman asked Congress for more special agents and
assigned a small detail to protect Vice-President Barkley.
On December 8, Chief Baughman told a House Appropriations
Subcommittee that"never before has the life of the President,
who personifies our form of democracy, been so endangered by
radical forces such as these."
Describing Blair House as
"one of the poorest places for security," he requested funds
for 27 additional special agents to augment protection of the
President and to establish a permanent security detail for
the Vice-President.
He also asked for three more agents to
be regularly assigned to Puerto Rico, where they would investi
gate not only Presidential pro-
TREASURY DEPARTMENT
Information
Service
Wa s h i n g t o n , d .c .
140
pelease m o r n i n g n e w s p a p e r s ,
Monday. January 29, 1951.
S-2581
The attempted assassination of President Truman on
November 1, and the need for increased protection of the President
and Vice-President, highlighted the 1950 year-end report made
today to Secretary Snyder by U. E. Baughman, Chief of the U. S.
Secret Service.
Following the November 1 gun battle in which two Puerto
Ricans tried to shoot their way into Blair House and were shot
down by White House policemen and Secret Service agents, Chief
Baughman asked Congress for more special agents and assigned
a small detail to protect Vice-President Barkle;/-.
On December 8, Chief Baughman told a House Appropriations
Subcommittee that ’’never before has the life of the President,
vho personifies our form of democracy, been so endangered by
radical forces such as these.” Describing Blair House as ’’one
of the poorest places for security,” he requested funds for 27
additional special agents to augment protection of the President
and to establish a permanent security detail for the VicePresident. He also asked for three more agents to be regularly
assigned to Puerto Rico, where they would investigate not only
Presidential protection matters, but also counterfeiting and
forgery cases. Congress approved the full request and the men
are being recruited.
Counterfeiters and forgers burdened the Secret Service with
a staggering case load averaging 90 cases per agent, as compared
to an accepted norm of 10 to 15 cases. Agents arrested 513
persons for counterfeiting offenses and 2,635 for forgery and
other crimes, and investigated a total of 47,712 criminal and
non-criminal cases; yet there were 18,260 cases of all types
still awaiting investigation as of December 31.
Seizures of counterfeit bills and coins totaled $ 1 ,169 ,730.79
value, of which $617,389.24 was passed on
m a i l storekeepers. The balance was captured by the Secret
ervice before it could be placed in circulation.
in representative
141
- 2 The trail of one trio of counterfeiters led from California
to a log cabin in the Missouri woods, where the Secret Service
ended both trail and crime by capturing the three and seizing
the plant. Scores of plates for bogus $5 and $10 bills were made
by Melvin G. Parsons, a foundry worker, who began his counter
feiting career in 1948 in South San Francisco,’California, where
he printed notes at the home of Louis Shew* Parsons buried
32 plates near La Honda, California, in 1949 , and moved to his
home at Crystal City, Missouri, where he was later joined by
Mr. and Mrs. Shew. Parsons and Shew set up another plant in
the isolated cabin near Festus, Missouri, at the edge of the
Ozark Mountains, and resumed the printing of counterfeits, which
they passed in several States, Secret Service agents, tracing
the three from California, located them in Missouri and kept
them under constant surveillance. Shew was arrested August 7
while walking into the woods with his dog, and Mrs. Shew and
Parsons were taken into custody the same day. All made complete
confessions. Agents captured 44 plates and'a quantity of
counterfeit notes, with other counterfeiting paraphernalia.
Later, Parsons was taken to California where he led agents to
a spot near La Honda and dug up the 32 counterfeit plates he
had buried^the year before. The trio was sentenced August 25
in St, Louis, Parsons to serve six years, Shew five years.
Mrs. Shew was placed on probation for three years.
In another California case, two Hollywood counterfeiters
set out to make bogus $1 and $20 bills, but decided a good
imitation of a rare postage stamp would be more profitable.
Nick Petrashkow, 37 , a toolmaker, and Narvy L. Persinger, 38
a sheet metal worker, installed a counterfeiting plant in a
house-trailer near Burbank, California. During the production
of a number of $20 notes which they considered inferior, tho
pair read a newspaper story to the effect that a 24-cent U. S.
airmail stamp with an inverted airplane in the design was worth
nearly $4,000. Immediately they rented a house in North
Hollywood and began to make plates for counterfeit stamps with
tne inverted image, which they intended to sell to stamp
* They achieve^ a high degree of skill in their plates
?°-,sí1
ampSí but before any of the counterfeits could be
ího Sacret Service stepped in and seized the whole
output. Both men were convicted and sentenced in Los Angeles.
*n Missoula, Montana, a 63 -year-old ex-convict charged with
?nd Passing counterfeit coins, told agents, "I*m not
i m P^ l04er" boys' but
1 a<3-tfiit anything now, with my record,
11 aie in prison and I want to avoid that if I can.M
142
- 3 John F. Stabler's criminal career began in 1913 when he was sent
to the Oregon State Penitentiary to serve from 2 to 20 years for
forgery. Since that time he has spent 31 years in jail on
charges of bootlegging, first-degree assault, fictitious checks,
white slavery, grand larceny, first-degree murder, and counter
feiting. He is now under indictment on the coin charge.
Another coiner mistakenly thought a safe haven for a counterfelting plant would be a rescue mission in Pensacola, Florida
Adam Duzynski
convicted counterfeiter, got a room at the
mission and hi.
ade bogus 50-cent coins late at night, after all
the other roc.mens had retired , The coins were traced to
Duzynski by Pens&cola police detectives, who arrested him and
found 60 unfiniched counterfeits in pockets of his clothing, He
made a full ccafession to the Secret Service, pleaded guilty and
was sentenced November 10 to serve three years.
An unusual case in Pittsburgh, Pennsylvania, demonstrated
the wisdom of the Federal law which prohibits the printing of
photographs or illustrations resembling paper money or other
Government obligations. A Pittsburgh attorney who is also an
Army Reserve oftmcer conceived a novel idea for recruiting men
in the Reserve, He ordered letter-size green sheets bearing
a facsimile of a U. S, Treasury check, The pages were mailed to
prospective recruits, whose names were inscribed on the "checks"
as the payees, Under the check illustration was the caption,
"This will represent the amount of pay you will receive if you
will enlist in the Army Reserves." One prospect clipped the
check illustration from the green sheet, endorsed the*"check"
and cashed it at a grocery store, Secret Service agents seized
nearly 1,000 of these counterfeit checks and explained the law
to the well-intentioned attorney with a suggestion that he adopt
some other recruitment method.
Forgery of genuine Government checks and bonds continued, to
he an important enforcement problem. During the year the Secret
S W
inve3tigations of 34,191 forged checks worth
->¿,434,23708 and 6,739 forged bonds, worth $455*753*41.
One case turned up a novel modus operand! by a female check
'
w,°inan;’ mother of two small children, bought a
W y .treasury check from an acquaintance who had stolen it from
mail box. She padded her dress with a pillow and took the
neek to a pawnshop, posing as an expectant mother. The hoax
^ L aiS2overea befope
check was cashed, and the woman was
¿rested, prosecuted and convicted.
143
- ft In Omaha, Nebraska, four men went on a check-forgery spree
vith a boldness which would make most check thieves shudder.
Cleo Dawson, just released from the Nebraska Men’s Reformatory,
stole an income tax refund check and cashed it In a bank, using
a false Social Security card for identification. Not content
Vith stealing one check at a time, Dawson teamed up with two
other ex-inmates of the Reformatory, James D. Mitchell, 27,
and Thomas 0. Roach, 2k, and they planned a burglary of a Post
Office station. Roach rifled mail-sorting boxes and filled a
paper grocery bag with stolen checks, escaping through the
tack door.
The trio sorted the checks and threw away those with names
"too hard to spell.1' They added another ex-convict, Lloyd H.
Smith, to the combine, and began to cash the checks. In
South Omaha, Smith and Roach entered a tavern where Smith forged
and cashed one check. He came out, donned a different jacket
and dark glasses, and reentered the tavern with another check.
Smith had to wait until the proprietor cashed a stolen check
for Roach, then Smith cashed his second cheeky posing as the
new payee. The tavern proprietor lost $180 In less than five
minutes.
The gang enlisted a woman to cash checks payable to females,
and she put over a fourth check at the same South Omaha tavern.
After the Omaha Office of the Secret Service cautioned merchants
to require good identification before cashing Government checks
for strangers, Dawson was rebuffed several times in efforts to
cash stolen checks and lost his nerve. Frightened, Smith burned
the uncashed checks. Two months later, however, Dawson and
Mitchell stole another check and tried to cash it at the
South Omaha tavern where they had been so lucky on four occasions.
The proprietor asked for identification, which the men could not
produce. When they left, the proprietor noted the license
number of Mitchell’s automobile. Secret Service agents, working
with Post Office Inspectors and Omaha police,, arrested the gang
the same night. Dawson, Smith and Mitchell were each sentenced
to two years, and Roach to three years, in the Terre Haute
Penitentiary.
Shades of the pioneers were raised by one forgery investi
gation involving two aged IT, S u Army Apache Indian Scouts,
retired, A scout who served under General George B. Cook in
pacifying the Yuma-Mojave Indians in Arizona in 1878 allegedly
forged and cashed a pension check payable to another retired
Apache Indian Scout. Both men are more than 90 years old and
live on the Salt River (Arizona) Indian Reservation, The
offender was not prosecuted, but made reimbursement in the full
amount of the check.
- 5 Close cooperation between two Treasury enforcement agencies
smashed a smooth plot by eight people to mulct the Government
of thousands of dollars through false income tax returns.
Special agents of the Secret Service and the Treasury’s
Intelligence Unit discovered that Arthur H. Lange of Baton -Rouge,
Louisiana, made fictitious income tax returns in which high
exemptions were claimed, resulting in the issuance of refund
checks by the Government. Lange had the chocks mailed to his
sister, Aline Lange Lee, in Los Angeles, California, and sub
sequently taught her how to make fraudulent returns for her own
profit.
Mrs. Lee involved her son, two daughters, another
brother and two personal friends, who netted $1^,000 from the
scheme before they were caught. All were sentenced to prison
terms up to three years and were required to make a refund to
the Government in full.
In Hickory, North Carolina, Secret Service agents arrested
State Senator Max C. Wilson on July 6 for embezzlement of
$33,000 in National Farm .Loan Association funds. Wilson had
served as vice-president of the National Farm Loan Association
of North Wilkosboro,North Carolina, and was the authorized
attorney for the preparation of deeds, contracts and other papers
for the organization. Wilson pleaded guilty July 19 at
Ashevillo, North Carolina, and was sentenced to serve 3 years
in prison.
Convictions resulted in 2,803 cases of all types, or in
98.4 percent of the cases that went to trial. Prison sentences
aggregated 3 ,467 years, and additional sentences of 2,893 years
yero suspended or probated. Fines in criminal cases totaled
$1^1,^65.70.
0O0
RELSASK kfiRSC BESSPáí'BíS,
b
Q
1
Tuesday. January 30. 1951*
The Secretary of the treasury announced last evening that the tendere fer
$1,100,000,000, or thereabouts, of 91-day treasury bille to be dated February 1
and to nature May 3, 1951# which were offered on January 25# were opened at the
Federal Reserve Banks on January 29*
the details of this issus ars as followss
total applied for « $1,698,002,000
total accepted
« 1,103,250,000 (includes $104,803,000 entered on a non«
competitive basis and accepted in full
at the average price shown below)
Average prise
« 99*648/ Equivalent rate of discount approx. 1.391$ per mm
Range of accepted competitive bidet
High
~ 99*658 Equivalent rate of discount approx. 1.353$ per annua
bow
« 99*64?
*
*
*
»
«
1 . 396$
(44 percent of the amount bid for at the lew price ime accepted)
Federal Reserve
District
Boston
Mew Torte
Philadelphia
Cleveland
Atlanta
Chicago
St* Louie
Minneapolis
Kansas City
Balias
San Francisco
TOTAL
Total
Applied for
t 19.023,000
1,429,473.000
26,865,000
36,637?* — —
12,690,000
18,946,000
198,683,000
20,458,000
4,005#000
25,943,000
32,120,000
73,159,000
$1,898,002,000
Total
Accepted
t
18,743,000
754#473#000
11,585,000
7ÎÎ
QQß
35,237*,
12,690,000
18,386,000
140,963,000
1?,262,000
4,005,000
25,943,CX»
29,264,000
34,679,000
ti,103,250,000
"
*
treasury
Information
departm ent
Service
WASHINGTON,
KELEASE MORNING N EWSPAPERS,
-j
Tuesday, January 30, 1951,
S-2582
*
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 February 1 and to mature May 3, 1951 , which were offered
on January 25, were opened at the Federal Reserve Banks on
January 29.
The details of this issue are as follows:
Total applied for - $1,898,002,000
Total accepted
- 1,103,250,000 (includes $104,803,000
entered on a non
competitive basis and
accepted in full at the
average price shown below)
Average price
- 99.648/ Equivalent rate of discount approx.
1.391$ pet* annum
Range of accepted competitive bids:
High
- 99,658
quivalent rate of discount approx
1.353$.per annum
- 99 647 Equivalent rate of discount approx.
1.396$ per annum
Low
(44 percent of the amount bid for at the low price was accepted)
[Federal Reserve
[D istrict_____
Boston
pew York
Philadelphia
[Cleveland
[Bichmond ■
¡Atlanta
phicago
p t. Louis
pinneapolis
Kansas C ity
Pallas
San Francisco
TOTAL
Total
Applied for
$
19,023,000
1,429,473,000
26,865,000
36.637.000
12.690.000
18.946.000
198,683,000
20.458.000
4,005,000
25.943.000
32.120.000
___73,159,000
$1,898,002,000
0O0
Total
Accepted
$
18,743,000
754.473.000
11,5 8 5 ,0 0 0
35.237.000
12.690.000
18 ,386,000
140.963.000
1 7 ,2 8 2 , 0 0 0
4,005,000
25.943.000
29.264.000
___ 34,679,000
$ 1,
103 , 250,000
-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 bZ and
as amended by Section
11$
117
(a)
(1)
of the Revenue Act of
of the Internal Revenue Code,
19hl,
the amount of discount at
which bill^ 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
-
m m
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 sha
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 tty
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 February 8, 1951
y in cash or other immediately avaij
able funds or in a like face amount of Treasury bills maturing February^_19$I|
Cash and exchange tenders will receive equal treatment.
Cash adjustments mil
made for differences between the par value of maturing bills accepted in exchan
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 exception, as such,
and loss from the sale or other disposition of Treasury bills shall not have a
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
all taxation now or hereafter imposed on the principal or interest thereof by
Wgshi
FOR RELEASE, MORNING NEWSPAPERS,
Thursday, February 1, 1951
3B
The Secretary of the Treasury, by this public notice, invites tenders for
SI,100,000,000
* * —~TSBBf '—
, or thereabouts, of
91
in exchange for Treasury bills maturing
~dal Treasury bills, for cash and
Februar y
8T 1951--- > to be issued on
a discount basis under competitive and non-competitive bidding as hereinafter
provided.
The bills of this series vri.ll be dated ^Feoiuia^o, m 19bl-----* and
vri.ll mature
interest.
May 10, 1951
They
vail
~
, when the face amount vri.ll be payable without
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.in., Eastern
Tenders m i l not be received at the Treasury Department, Washington.
Each tender
must be for an even multiple of §1,000, and in the case of competitive tenders
the price offered must be expressed on the basis of 100, with not more than three
decimals, e.
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 mil
he 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 rail be received without deposit from
incorporated banks and trust companies and iron 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,
treasury
departm ent
Information Service
WASHINGTON, D .C .
150
release m o r n i n g n e w s p a p e r s ,
■Thursday, February 1, 1951-
S.-2583
The Secretary of the Treasury, by this
[tenders for $1,100,000,000, or thereabouts,
[for cash and in exchange for Treasury bills
public notice, invites
of $i~&igLy Treasury bills,
maturing February 8 ,
[1951, to be issued on a discount basis under competitive and non¡competitive bidding as hereinafter provided. The bills of this
[series v i l l be dated February 8 , 1 9 5 1 , and will mature May 1 0 , 1 9 5 1 ,
Chen the face amount will be payable without interest. They will
[be issued in bearer form only, and in denominations of $ 1 ,000,
1 5 ,0 0 0 , $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, February 5, 1951. 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
larged 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
Prom responsible and recognized dealers in investment securities.
fenders from others must be accompanied by payment of 2 percent of
■he face amount of Treasury bills applied for, unless the tenders
are accompanied by an express guaranty of payment by an incorporated
lank or trust company.
I
Immediately after the closing hour, tenders will be opened at
pie Federal Reserve Banks and Branches, following which public
pinouncement will be made by the Secretary of the Treasury of the
■nount and price range of accepted bids . Those submitting tenders
pill be advised of the acceptance or rejection thereof. The
Bore tary of the Treasury expressly reserves the right to accept or
■eject any or all tenders, in whole or in part, and his action in
piy such respect shall be final. Subject to these reservations,
■on-competitive tenders for $200,000 or less without stated price
|rom any one bidder will be accepted in full at the average price
- 2
{i n three d e c i m a l s ) of a c c e p t e d corapetive 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 on F e b r u a r y 8 , 1951, 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 in a like face amount of
T r e a s u r y b i l l s m a t u r i n g F e b r u a r y 8 , 1951*
C a s h and. exchange, tenders
w i l l r e c e i v e e q u a l treatment.
Cash a d j u s t m e n t s w i l l b e 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 nd the issue p r i c e of the n e w bills.
The income d 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 gain
f r o m the sale or o t her d i s p o s i t i o n of the oills, shall n o t have any
E x e m p t i o n . .as such, a n d loss f r o m the sale or o t her d i s p o s i t i o n of
T r e a s u r y b i l l s shall not h a v e a n y s p e c i a l treatment, as such, under
the I n t e r n a l Revenue, 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 ject to estate, inheritance, gift
or o t her e x c i s e taxes, w h e t h e r F e d e r a l or State, b u t ^ s h a l l oe exempt
f rom a l l t a x a t i o n n o w or h e r e a f t e r i m p osed on 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,
of the p o s s e s s i o n s of the
U n i t e d States, or
a n y l o c a l t a x i n g a u t h ority. .F o r p u r p o s e s nf
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 Treasury, b i lls are originally
sold b y the U n i t e d States shall
c o n s i d e r e d to be interest. Under
S e c tions 4 2 a nd 1 1 7 (a) ( l ) Of the I n t e r n a l R e v e n u e Code, as amended
b y 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 discount at
w h i c h b i lls issued 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 l l s shall be sold, r e d e e m e d or ot 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 f r o m c o n s i d e r a t i o n as capital
assets.
A c c o r d i n g l y , the o w ner of T r e a s u r y bills (other than 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 n e e d Include in h is income
t a x r e t u r n o n l y the d i f f e r e n c e b e t w e e n the p r ice p a i d for such
h i lls
w h e t h e r on o r i g i n a l Issue or on s u b s e q u e n t p u r chase, and
the a m o u n t a c t u a l l y r e c e i v e d e i t h e r u p o n sale' or r e d e m p t i o n at
m a t u r i t y d u r i n g the t a x able y e a r for w h i c h . t h e r e t u r n is made, as
o r d i n a r y g a i n or loss.
by
or any
bp
4l8, as amended, and t h i s .
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
notice, p r e s c r i b e the terms of the T r e a s u r y bills a nd jgovern 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 obtained
f r o m any F e d e r a l R e s e r v e B a n k or Branch.
oOo
FOR B4MEDIATE RELEASE
February 2. 1951_____
The global quota of 45,656,420 pounds of cotton having a staple
of 1-1/8 inches or more, but less than 1-11/16, which opened at 12:00
noon, e.s.t., on February 1, was filled at the opening hour.
50,133,843 pounds of such cotton were offered for entry. The
Bureau of Customs instructed collectors to permit the release of 91.1
per centum of the cotton covered by each entry for consumption, 4^^
warehouse withdrawal for consumption, presented at the opening.
treasury
Information
departm ent
Service
Wa s h i n g t o n , d .c .
I M M E D I A T E RELEASE,
Friday, F e b r u a r y 2 ,
1951.
S-2584
The glob a l q u o t a of ^ 5 , 6 5 6 , ^ 2 0 poun d s
of c o t t o n h a v i n g a staple of
or more,
but
o p e n e d at
less
than
1 - 1/8 inches
1 -1 1 /1 6 , which
12-00 noon, e.s.t., on
1 , was fill e d at the o p e n i n g
February
hour.
50,133,8^3 pounds
of such c o t t o n
w ere o f f e r e d for entry.
Customs
The B u r e a u of
i n s t r u c t e d col l e c t o r s
the r e l e a s e of
to p e r m i t
9 1 . 1 p e r c e n t u m of the
c o t t o n co v e r e d b y e a c h e n t r y for c o n
sumption,
a nd w a r e h o u s e w i t h d r a w a l for
consumption,
p r e s e n t e d at
0O0
the opening.
In mm%im thè eosts of defesse hy «arreni temile» ve are
fortunate la thè ha eie
vtllin«*»s« of
for natlonal defesse end thelr
Aneiican tarpayers te par
ability to à© so.
I| le esoentlal,
t
io thè pr® s^rv8,I1 o q of ih® se asseto that ve talee care io
remore thè iraporfectloae
1 » thè lax lave
proria» mesa» of
eecape for «ose »ad create onnecessary fcardshlpe for others.
M«y I# 1» eenelmsion, aasare yoo of thè Prosldent1e appresicilem
of thè restasse and eoaplexity of thè task rfcich thè prosit
sitoation concole hi» to place la yotur bande. 1 hope that thè
people througibotit thè cotsnlry aro avaro of tho paco whìcb your
Dominittee aad tho Secato binane« Ooamlttoo baro had to set ondar
ih# forco of evento dariag thè past seren months. fhe fr©a«ury
Department stende ready vlih all ite faciliti©» to sopply ywt
vith Information and provido «neh othor asei«tane© a» aay ho
holpfol in thi» difficili taeic. 1 a» sur© that you also bare thè ^
underetanding of thè America» people in thle ondartaking.
- 2k -
generations» (2) the opportunity to escape the higher estate tax
rates by making gifts subject to lower tax rates» (3) the large
exemptions» and (k) the ineffectiveness of the present rate schedule.
The last two weaknesses were greatly magnified by the estate and gift
splitting provisions introduced by the l$kS Act*
In the course of this year** program» the Committee may also
want to consider changes in the strucutre of the excess profits tax»
as suggested In the President* s Message.
Combined with legislation
on the renegotiation of war contracts» which is now under considera
tion in the Senate» an effective excess profits tax can prevent
profiteering and contribute to a more equitable distribution of the
tax burden.
It can also be relied on to make a substantial revenue
contribution.
fhe proper treatment of these areas of structural revision is
fairly clear in some cases.
In others» the general approach to a
desirable solution has previously been submitted to your Committee
although the detailed formmXatlon of revised treatment would require
further technical study.
In still others» the development of a
satisfactory approach must face up to difficult and far-reaching
considerations transcending the revenue factor. /
The several tax areas to which I have referred, and such other
revenue possibilities as will be developed in the course of ywat
hearings, will all need to be fully exploded in rounding out the
revenue poograa for this year.
************
it, la reality* huslaess Iacono» t© editai gai&s.
A redsfialtioa
ai Iht ìncone basii to lacltid® the&e g&ias ©erits your eareful
cesasidaration.
fhe treatment ©f t&je-exeB^t «ecaritte» ale© »©rii« attenti©» la
thè preaent situation.
fh* exesiption of Stata aad mtnielpal
secmritie# fro» Federai taxatioa li a loa^siandiag barri ©r t© Ih©
aehieseasat of ©-©alty la th© distribtitio® of th© indiYi d&al incoia©
ls ma.de more difficult
tax borda®, £hs remici of thè exearptlo» privilegi hy th© i m i
fatar©
tSaat it woulà lacro- so to sono de&reo thè eost of/State and locai
borroviag.
A re&seoafcl© basii eoa ho doselopeà for tho taxatios of
futuro issues of Stato aad locai securitiee wlthout burteRing
States aad lesalitlos ©scesa isoly*
fhe estate aad glft taxes are ale© la aset of reriaiea aad
«eoXd contribute to ew reteaues* fa ay appoarane© bifore yew
Cosmitte© lest year» 1 preeeated thè reeults ef a detalled ©aalysie
of thè«© taxes. I «spiala©* et that tino that thè wmkmta of thè
preseat estate aad gift taxes resulti frons (1) thè orerly Ikror*
atte treatneat of preperty placed la trust for serrerai
22
331
'J
competition with other taxable businesses»
lie should
seek to apply the corporation Income tax to such r etaiaed funds.
This would notr impair the ability of cooperatives and mutual savings
and credit institutions to perform their traditional functions of
collective buying and selling or pooling of savings for investment.
The taxation of life Insurance co panics is another important
structural revision cited hy the President to which your Committee
will wish to give careful attention,
for many years life insurance
companies have had special treatment which has enabled them to be
taxed on a United portion of their Investment Income only.
The
breakdown of the taxing formula in 19^7 led to the development of
a special stop-gap provision governing the treatment of these
companies for the years 19^9 and 195®*
Ho one can be more familiar
with the difficult and complex issues is this area than
members of /^^^Coroiittee who assisted in the formulation of th©-^-'
temporary^provisions.
*jP@velop8!eBt of a more satis
factory permanent solution Is another task of structural revision
which will add to the strength of the revenue system.
•The present previsions extending preferential capital gain
treatment to profits realised from the sale of business property
should be revised to meet the growing technical problems and tax
avoidance opportnsltles that have arisen in this area.
These provi-
y sione are being systematically exploited for the conversion of what
$© tii# extent tlmi eelleetire toying and selling results
1» lower ttqriag prices or larger incoia©* to pstwas or isolator*»
tliese savings eater late their taratie income at individual#*
Böserer« funds which are not returned to »eitere of these
mutual enterprises ere available tax free for
m
Fsxlly a« iaporteat a» laproved enforcement 1» thè a**^ + * *
iiaproving lisa taae «traeture in thoee aree« which «salii# uelfllfl&lU
taxpayer« to «scape thèIr fair «bare ©f thè bur&ea.
Oae of thè s»,ior etruetarai defects le # 0 perenniate deplettoa
7 ^ & *$
psasL4slont .extende* ha-aewtw.lìi oli and aiaerei produoers. ffceeb -»ere
casting th# fovernsieat and, iherefore, taxpayer« la generai, fcunàreds
of allllons of dollar# eech year.
TJnder thè perceatage depletlo» provi«io»«* ©wacr» of alme« and
\ vv
■
oli veli« are alloved to deduci & «peelfied pereeniage of their
grò« e Ine caie wtthout rogard t® thè capitai eo#t of tha preperty.
fhese arbitrary rate« of deducilo» raage ae high aa 2?§ percent of
gres» iacea« la thè cs«e of oli «ad m y amasi to f© percent of thè
set lacoae.
thslike other capitai recovery allocane««, pereentsge
àepletlo» continue« to he deduciIbie «ve» after
investment ha® heen recoverec tax free.
100 percent of thè
fhua total deduciione aay
eventualXy asaount to aragr lime® là# taxpayer *s aduni laveetaent.
la addi ilo» to thè hlghly favomble deole tlon allevane«s, oli
producer« ean
ex parco«e* a talistanilai part of
thetr oatlaye f o t drilllng and developaent. fhe m m oxm tn of capitai
inveetaent thne vritten off ai thè outset bave no effeot on thè
future pereeatage depletlon deducilo»«, fhls recali« ia a doublé
deduciio» vith reepeoi to thè m m capitai^ investment. fhe eoablned ^
lapect of percentage depletion and thè
g ffiivilage "for
031
- 19 Structural revision and enforcement
As the President has Indicted, those who hear heavy tax burdens
are entitled to the assurance that others v l H not he permitted to
avoid them,
fhe last Congress provided part of this assurance %
closing several Important loopholes. 7 But a number of other
important areas remain.
Svery effort should be made to correct inequalities in the
enforcement of the individual income tax.
She Bureau of Internal
Revenue began a study of this problem with the 19*40 tax returns on
the basis of sampling methods which are unprecedented in this field,
the information obtained from this investigation has enabled the Bureau
to improve ite procedures and to sake more effective use of its limited
enforcement staff.
$o obtain maxims» compliance requires mere than 3/ttprovement in
auditing procedures.
A tax system which reaches the great majority
of income recipients must employ mass enforcement methods which are
as nearly automatic in their application as possible.
She wage
withholding system* for example *— » now the cornerstone of Individual
income tax administration —
has made a major contribution ^improv
ing compliance and enabling the Individual to budget his taxes.
Boring the last session* your Committee explored the possibility
of applying the withholding principle to dividend distributions by
corporations.
X urge you to again explore this field.
X would
suggest that its application to payments of interest to individuals
also be considered.
$he capital gala® tax could appropriately be increased %
lag the alternative tax rate free
rats-
50 percent to ?5 percent, this
rate, combined with the 50 percent inclusion, would result in a uaxtams
effective rate of JJi percent,
this increase over the present 25-
percent rate would he in line with the H5—perosmfc increase in income
tax rates adopted last year and proposed now*
A corresponding
increase to |f| percent should he made in the rate of tax applicable
to capital gain* of corporations.
Lengthening the 6 months holding period now separating long- fro»
short*tern capital galas *ould p*o*id* asr. .fiectlre taxation of
speculative profits.
&s a aiolnraa, the holding period should he
increased to one year*
%
this strengthening of the tax rate® on capital gains, the
individual income tax will be made mere equitable.
most cloeely to concepts of fairness in taxation.
fhXm tax conforms
It allows for
variations in income, decWtiblo expenses and family status.
It is
the fairest method of distributing the cost of the defease program.
It is also loss likely than other taxes to inflate the cost structure.
A® a remit of the current payment system introduced during the war,
thi« ty* is especially well*»suited for quick adjustment to change*/
(financial requirements.
With proper adjustments in its structure,
the individual income tax can and should contribute greatly to our
revenue objective in the defense period*
Q b
OX
- 17 -
possible courses of action are being stud!
Joint Coasaittee staffs,
the treasury and
the Committee will undoubtedly want to
examine this problem in all its implications before completing this
year* s tax leg! slat ire program.
Increases in income tax rates raise another Important structural
problem —
one that requires more immediate action.
v k
income and subjected to the regular rates,
I refer to the
f\
fhe taxpayer has the
option to pay a flat 25-pereent rate on long-term capital gains if
this will result in a lower tax.
fhe starting rate of the individual Income tax has risen from
16.6 percent in 19^8 to 20 percent in 1951.
tf another h percentage
points are added to the initial rate, the tax on both ordinary income
and on long-term capital gains realised by lower and middle Inoem*«-
/iVt/
taxpayer s^will have been increased ^5 percent over the 19**8 level.
Undi
the circumstances, it would gJgjjSFbe Inequitable to leave the maximum
effective rate- of tax on capital gains unchanged at 25 percent, or only
one percentage point higher than the ree
bracket,
rate in the first
this maximum rate affects only 5 percent of the taxpayers
having long-term capital gains but this small group accounts for
more than half the capital gains tax collected from individuals.
** M ~
b d k of any major inerease in individual incorno tax revenues
will nevertheless come trom %he lover taxable bratteate.
Charte 5 ^
$
«hieb shov the distribution of incorno by sise elasses of adjnsted gros,
Ineome and taxable Ime ose, respeetively» indio»te that mesi of the tax
base is la the lover and of the incorno scale,
(fable512 and 13)
j|
îs estimated that 83 percent of ail taapayer# and $8 percent of thsir
taxable ineo&e i» secoua ted for
by
the incosse groupe belo*
$5,000.
fhîs concentration of inceste muet be tapped if the tax is to mise
enough revenue.
One important facture of the individual iaeos»« tax structure 1*
the method of taxing faaily incorno.
Tou vili recali that in 19*®
Congres« adopted universal ineome Splitting in order to correct tax
i,
V discrimination betveen résidants of community and noncoraratmity-property
States.
Chart 8 demonstmtes some of the effeets of ineome Splitting on
the relative tax 1 labilittes of single persone and marrled couples.
Single persomi vith ineome în ezeess of $3,100 vili pay store tax
imder the propos ed rate schedi# thaa thoy paid durlng the ver.
On the
other hand, marri ed people in thè middle bmekets vho benefit fron the
ineome Splitting provisions vili pay substaatlally lese than they did
during World Wfer IX*
(fable lh)
fhere are différences of opinion about the faimess of the
present tax treatment of faaily incorno and about the methods that
night be adopted to aodlfy thè resulto of ineome Splitting.
Severa!
Individual income tax
la order to meet the large revenue goal confronting a«, it
will he necessary to rely on the individual Income tax —
backbone of our revenue system —
tional revenues,
the
for a very large share of the addi
fhe $ 4 hilllon Increase recommended by the
President can he provided hy raising all income tax bracket rates
hy 4 percentage pointe and hy an upward adjustment of the taxes
on capital gains,
A 4 -percentage-point rate increase would raise the starting
rate» applicable to the first $2» 000 of taxable^Income for a single
person and $4 ,0 0 0 for a married eouplejto 24 p e r c e i t P ^ e ^ increases
in tax liabilities for various net incomes before exemptions are shown
in Charter.
A married person with two dependents and with a net
Income of $3*000 now pays $486 or 16*3 percent ©f his Income in tax.
fhe proposed rate£ would increase his tax liability to $584 or
19*5 percent of his net income.
At the $25,000 level, the tax would
V
be increased from $9 ,7 9 6 or 39.2 percent to $10 ,77 ^ or 4 3 .1 percent
of net income, L l & f o tij
In examining the possible methods of raising individual
Income tax yield, con siderat ion was given to reducing exemptions,
fhe President did not recommend this change because at current
levels of income his irevenue objective can be met by confining
the income tax increases mainly to those now taxable.
a)
31
- xk -
Opportunities for profittili the years aiwmê* oven under price
end wage ©e 11 luire, ere
A.
The
#1
defense order» placed end yet to he placed **** added to the large
unsatisfied demand for industrial^ plant, hou»lag, consumer
durable good» and
wopt
article® of current censurant 1on. —
assure
producers of a sellers* s^rfcet in nearly every field of business
activity during the mobilise tion period,
la spite of problem» of
securing the materials and labor for their production, business
lU
will have adecmte incentives even under higher tares to
with the job of production.
g^Îrnmrà
An important part of our reassurance
Oy J\
g p l M s score is the wholehearted and realistic apurai sal by
business management of its full responsibility in the national
effort.
The appropriate level of any one tax is determined largely by
the necessity of balancing the contributions fro® each tax source
in a way which will best meet the total demands noon the tax system.
In the present circumstances the increases in corporate rates
proposed can be regarded as a necessary counterpart of Increased
taxes on Individual incomes and coasusers of taxed commodities.
— 13 •*
yho ftMillon&l revenue to He oiitnifidi fro® the increase of 8 percentage point« in the corporate tax would come mostly t t m the large
corporations.
5fce 281,000 corporations with profits of loss than
$25,000 would pay only 3 percent of the proposed total liability,
while the 4 2 ,0 0 0 corporations with profits oner $100,000 would pay
90 percent of the total*
(Chart 2 and fable %/i'
She level of corporation taxes proposed is dictated by the need
fbr an equitable distribution of the burden# of defense consistent with
the continued ¡growth of industry• da shown In Chart 3* corporation
profits have continued to expand*
0» the basis of conservative
estimates which allow for no appreciable amount of inventory profits,
they are expected to reach at least $43 billion in 1951* fhe $43 bil
lion estimate for 1951 compares with $40.2 billion In 195&
*h®
previous peak of $33*9 billion in 1948. (fable 9)
Ua&er the proposed rates, federal Income and excess profits tax
liabilities would be increased to $24*5 billion* or about 57 percent
of estimated profits.
Bren on the* beefs of conservative profit
estimates and taking fall account of State corporation tax recuireaents,
this would leave corporations with $1? billion Income available for
dividends and expansion, or approximately the same as the average
for 1946 -49 , a period of unusual and sustained prosperity.
I mm aware that a corporate rate of 55 percent would raise series
acuity and incentive considerations in a normal and stable peacetime
J
feeonomy.
Bswcver, corporation tax rates requested during the present
emergency cannot be Judged by normal standards.
Y3I
~ 12 -
Corporation taxes
fbt President *s reeoawm&?attea that $3 billion additional to
raised from the income tax on corporations will repairs an increase
of 8 percentage potato 4a the corporate normal tax,
fhis change would raise the rate on the first $25# 000 of
corporate Income from 25 percent to 33 percent and the general rate
applicable to income in excess ©f $25# 000 from 4? percent to 55 per
cent.
On income subject to the excess profits tax, the combined
maxlmos! rate would rise from 77 percent to 85 percent,
fhe ceiling
rate now is^esed at 62 percent would hare to be raised to
70 percent to obtain the fall revenue effect of an 8*percentage-point
n■
corporation Income tax Increase.
fh© tax liabilities under the proposed corporation income tax
rates mar be ectrpared with those under present rates by reference to
Chart 1 and fable 8.
fhe chart shows for corporations of different
sixes how the change in rates would affect those subject only to the
Income tax.
fable 7 Illustrates the effective rates of the combined
income and excess profits taxes raider the proposal#
cx>
'It f"
d i.
** SI
***** Umt^ß&T «wwp*
Ä*ar « * Ö fl*»»« WriLSßtpolly
*w4, H M , « 4 «isíMa*? «Éásfc Hat fa&tnX. ®&r*rtmmt
gmsrm-y
tèm
irm to xin « .
% tow Aon«# exmlm
tama
fmm «r,telisi» a
ht Sh**» araa* naaU iwrev»» a ***»
p§¡y|»*p¿
Uw M
m MÉ»*
M
m
m
&* M
M
«f U m» t u M U M * p
1 ^ » ^ % Uw pw*wi*» Uw tmmm mm x»t*lf« tm%hm mmámáÉm
Q* »«* «Ul»* U w wmmmn.
flu p à m & M U W êf
f f • * !•*•(•§ II* * . 1*. M t** » M
M M M * # «Mf«
«*ât%un§
U r t e « M r »M i ils» M iH
« HÜ
%m
#f tte» t e s t e t e * # pate& Ia tmtmmmt la m&$àimîn$
mm mm&m
M
te#«* I M.1##»
$m
*Mâ
Wêm-$* &#»*• m m mi H »
l îééîé* t e » t e I# t e « t e s t e t e t e l t e
%# te fama «adtettag a w a
* '«te«»
mmmm*
itmmmt fmémml m m à m m m m mmrnk Sk\#Mtetl#lt f#p®psp$t«»
«r Ä
mmmmr
f m « t e t e m t m m m mi «amteite*«,
t e l á t e t e t# t e t e t e ? iii#* t e i M « te## a# a  i
M a t e r la «tel IS | | | i Ä ’«f tate «#«uw«#r
«witgÉMf |f » » t «f
te
m m m m m pmmêmmm m M M fa
*£ t e «te##
meaU^
t e ta## M P t e ,<m t e « M * m$mwpaà a p t t e t t e
m * « w
*•*
f#r
f#r
«s^wmâitee*
te ^ # t e l tap íate «ten # te»#- mü? M t e Ä
6û 9#9p#mk% #f m m & m # mmmêXtoamm t e t e t e # #tea*
te a
te
mtoamà flillif* lajçgggBtfci ta owpatel t e t l y *£ (m *mw IW
M&
IpÄ
a# iag»* f t e á t e * - * t e t# f i f f c
«nui«#
^ pW
te*
^ t e « te r
t# t e # t e a fcD ß.mmm% mi t e
®&#te ##hm'I t e wmèmtMm m»4m t e
t e -te i# i# t e
O H
t t m p e w m t ìt *»*» of tax on W t of tJ»* o m u m e r *araJ»la
gooSa le 10 p m x m n t or 1»«* of the B®jnvfaatBr«r»* j»rloo.
la tarai of rotali pria««. « * affanti** »%*<* of those tea*
era lew e o m r> » r* i «lth aost of the othar azalea texaa.
m m v&m tear&r** p r lm ®
ip KftmarTtflti liii^r# gmormlr w »
SO r m m m t of th m rotoli prio«*
oh
fisàBoo^oBts
rotali fpi§ M
t&» ta3C®*
aro now I®' of foot oro §0 por©#»! o f Hit
t .4
rotali pria« «otd suo «ttsór M I
*ro orwi h .t $ w * la rotation to
A
Hit -prioo paid by ooiMWioroa Bt« l»er#«#od rato# prop#oid idi#li
L^y ^ L
mn&ft b# at tlio
^
l«*#lniU& ororas« 1««*
13 pernotti of tbo ro ta li ori««#, [ /
^
«ha tasso# «a tofeoe«»* U * * r f ani gasoli»# or# tìi# s*o«t
»SB
pro^iotlr# of «or «nlMi*
Ilio P m s tè r n t * 9
fon#« ooonoiiya
*111 remit I» Ititi* prooMf# o» prtoo «maingo booms#
tà^ «111 not « M «Mh t® Vada«*# «®#t# or *mOh «p t&» «#»t of
liv in g aatOTlaUy«
Stono « f t3*o laoreas#« proposoi 1« m pm % *é to
« M imb#t«atiaXlr to proomi afeioistrmtlv« or oaforeomont proti«*»
JL
i
r
m 9 m
tetti $1.1 Mili« m a x
m U m tM X m f r m
AAteaeteer»* p r i m
A
55 H fiü l,
? f*##o«it to 20 ftveisl -of t e
m à im m m m im t e Ite «j^ti ^
yisatfstfteör#* »m &m i «
(
r& U m à Mr i m m m i m t e t e «
MT otte
¿«tel» « t e # fîw« 10 jiorooat to
Im te Sattete of te te mm Mietetet
df
not n m U t e y m 14 im %rao^Ht lato t e $#* t e # ^
J Ü R
lu l«er*»«o of oa#»Uirâ to OMNtu&f ta te ‘« A °" *lBOhoUe
tema###! oi^rottom« mà otear» wM
dui roi## or«r $1*2 Milia«*
fho fiala of te «moUso t e o« k# tmmmmà $5^0 M ill« M
r misiag
te proi&sm
t te of lè «rat* w griLUft ta 5 ete*.
_ ,rnTT--•
..fi <;
t e IftoroAM^far t e ü t o t e M Ü D » «aro m folloni
SVooote imrm&m*
Ito#
lo ?« t« s
P M t e r «oteotltau*........
Wtm 0
lo SDÌ of «fi».
ilottato«
taM-HUmX
* lUMfctt
u
*§
pria*
l o f r t e ^ t e » * tötet »io« ##%•»
raáloty phaao¿raiti#f «tetri«»
gu# aoá oil «pitase##* «nA
otear Goaoosior d w t e l M *+>»•«•
H o » Iflì to 2®p of «fr».
farlo#
Alcoholic t#r#r#g##t
M«ttli#d f M l i
i t e $$ ta Ila t e ffiäU
B##r #..**.*»*•*«****•**»**»•• IMPOSI ¡Ni tO $12 fOT tÉ&*
... . t m & w m
Ma##.
.. .... . t«rieo#
(fatali«#..... .
.... .
MI««aita*##** i t e t e
*• •*
« • * # *
I
%&' 0^-JCr
525
ita* lèi t# j f p m m A i
* «fli'tt •#
$3*035
GÉMI
/
?10
)
fro# HI to lòfi por aaofc I
3lgnr«H##>
Otear# *...
N
)
ì
iyCsk^ 6\j*
¿?¿£-& / J
%*
j r m m m m m » , « a * #3 m i l a n additional * t m m m
ßy-Ou^C
*• t a t a
# â
mmmmt
tolto wem l e m m w m t l m l m
tai »tortai* tat wtH fc# to tart «apply*
I toöw toil S w titto * & » «pte&iA f t a t a to M Ü
ita a»ts«sity
&®i toi» aelto« Onto & f m m ags f m m m m m t ê m & m tot
X*rta.d«*itf ft rsetaasadatisn tor »sein# tos: reductions.
of tot «Itn&tlen it tut a m
flits rtrtrsal
m m m e m tf tot pst«« «t » s t pay tor
tur dttotttt reentran®»!#*
fe yrspsrtog toi» part tf tot Frtade&t** p g & & e m m il tf tot
tatotag rnmirn
tata M m
M m oauttoUy »^taatdU
toit Xist
it Ions, as It tot» in T m t r n ^ , aitotad I© s§r stataota.
tot t o n I H M ^11 rt«toi tort m pvmlmm «ppsaratatt t tart
txprttta tot t í » itai «tat tf tot taiititof «»ist tax©s% m m % tf
if.
■tolto r#tai* isti tosi? » r i i » tanti*« ar® »et t a l t a l # fa a ptaatt i » tac «ytta.
I »
m e m f®m toll acre« to»t teat tf toast toste
» a %# Jttalfîtâ t a y to tot» liefet tf fsetting t a g e t taita* t a
J^£0 i f t o t a A »et i» t a c t d forth# r^t~* atei *nr jirttcait emmem
mm
to.
fta t| Mllioa r#r*saa# tojtsürs ffet toetit* tot»« tat to
SBwHI -
t# t hy »
totrtat# to a M
H
gretti» t f exist tog ila»#«
6-
M B o r àimnoma» wmmm
$h© P r m l é m t h&a indicaied th© area« fVo» idiieh $10 hllllon of
ih© additional revoca© re^ui rasente ©aa he ohtalned.
fh©«© iaelu&e
ahout $3 hillios fra© a©1©stive iaerea©©© la ©sei«© tax vate©,
$3 hilllon tram thè corporation incorna tax, sad $% bìllioa froa thè
individuai inooae tax.
forther vate inoro*©©© and ©traetemi adjustmenta «111 he neceasary
as pari of t M s prograes to hrlng thè ©trength of ih© revenne ^retam ap
to thè levale requlred ìgr ©ar pay~a*-ve-go policQr.
Xt is «ith fall ©enfidea©» in thè daterai nailon of ih© ¿seriosa
peopl© to take «hai «ver ©top© ave necessari to fi sano© th© d«f«a*e of
thelr Hatlom, that X ar&e thè adoptloa of measare© «ahodyiag thè
Preeldent*© program for laoreased revenae# at thè esili ©et posai hi©
date,
fhm addìi tonai $10 hlllios of revena© no« requeeted by th©
- yoù"
Freeidont «111 noi he enoa^h to pai thè Oovernment o& a pay-as-yea-130
hael© after defens© ©xpenditnve* gei fallar under «aj la thè flseal
year 1952 .
Xt «111, ho«ever, Help to ©over ouv insediate needa and
màk* It posalhle for th© iteagress to gl«© f u H oossideratlon to
further tax aeaeure© «hi oh «ili ©roride th© needed revenne© in thè
©nnltàbly among all of ouv gitisene,
X ©houli lik© to tura no« to th© detall© of th© progress
M
fA
A
g
«* 5 **
Beficit flnancing ut this ti»e would t m w m m m the publie debtt m &
voulô feed inflation,
A strong tax poîler halda dewa the «Isa and
©ost of the debt and helps protect oer savings*
Taxes and savlngs M
go haud in haad.
Àlthou^i aueh depende
opon a sirong tax pregrai», taxas oan not do the ¿oh alone.
Svery
effort must b« aade to preserve confidence in the futriré pardhaslng
power of savîngs la oïder to discourage the spending of aoenmnlated
aavings and to st isolats nmt savisjl
More thon on anything else,
the confidence essentiel to a succès«fol volantary savings progran
dopada on a t i m tax policy at this time.
Mcreover, %
i(
î,
I
Meeting ©ur revenue needs on a carrent bâtis, «e
■— '
■
goiitrlbate to the objective of àæspenlng Inflation.
A large eccoess
of consumer demand over the avallable supplies «111 continuai ly
threaten the n@v!ly~est&bll8hed
prise and m g e Controls.
If an
effective fiscal program mmmp&ttim direct Controls the taxpayers
of this coontry «til not be reqnired to bear at one and the sane
time the he&vy bordan of increased taxes and the uneven coste of
Inflation.
31X
- kthè end of this dal ondar ye&r thè deficit aay veli exeeed $15 Milio».
Our tax needs, therefore, are immediate and not poetpouable.
Î recognlse that there are man? uneertaintles ehi oh compìioate
thè planning of our tax program,
We knov that thè ultimate demande
of our militare program vili he henry,
*?hey mar uafold more rapldly
than noe anticipât ed,
We do not knov, therefore* hov faet federai
1
estendi tare« vili expand or tahen^they sdii lerel off,
f^Sh, faci that it le far more diffi ouit than cenai to anticipate
thè preoiee anfolding of our tax needs for t^e eoming fiscal year
la no cey redasse thè elee of thè ¿oh that jjSupdej to he dons,
la
fect * as thè Présidant ha* Indie&ted, thè proJected $lè.5 hillion
TttSébfj
deficit mar aotually nnderetate thè jyjasfri*^ If oar defesse program
derelops ae rapidly as le deeirahle,
SLearly. taxes oan keep pace
with expenditures only if thè major part of thè President *e program
le put iato offset prompt ly*
As Secretar? of thè Treasury, I bare eoneistenti? eupported m
adequate tax program for thè preeerration of our publie credit %
attaining a baianoed budget*
Most ©f thè présent federai debt m n aacumaìftted durlng thè
lest car chea taxes prorid ed lese than half of mrwfinancing needs,
Wo reeponsXbili typresses npon me more constantly than thè proper
management of this publia debt,
Our abiliiy tc export this deht
on a soual haeie reste, in thè laet analysis, on adequate taxation.
legislation la making an important contribution through Increased
collections from the individual income and corporation tax«#. 4
profit# tax M i l has been passed, and tfe# Songrese i® now strengthen*
lug the lava for renegotiation ©f war ©ontr&cts.
TBS I ®
IDS MDSB f A W
fhe President has indicated our tax goal for Iffl,
©ourse
la the
of this year m m a t add sufficient strength to the Federal
tax Staten to raise Its revenue producing capacity to the level of
fiscal year 1952 expenditures,
fhe budget for fiscal year 1952 cells for expenditures of
#|1,*6 billion,
tevsnaes at present tax levels are estimated at
$55*1 billion. IMs Îsaves a deficit of $16*5 billion to be covered
by increased taxation.
4 developing military program necessarily takes time before it
is fully reflected In actual expenditures.
In the early months,
%&sn pirns are being made and contracts are being let« the program
\
makes relatively small demands on the treasury. But after this
preliminary phase has been passed an upsurge of military expenditures
can be expected,
these expenditures are the measure of manpower ant
fighting pover being added to our armed forces*
Our military spending is already rising at a rats which will
result in a budget deficit of several billion dollars by the last
quarter of this fiscal year,
yoly-Beoember 1951*
the deficit will continue to grow during
Bor the nine months from the first of April to
2
build military defense« but also % ©ur willingness to accept the cost#
Up
^ u m JLjL ,
—,
IBté^aMfe* the economic sacrifices which the defense effort
eniallp, The surest and the safest w
to meet these costs is through
carrent taxation.
I
The économie capacity of the Wation to stand this necessarily
heavy ta* load has fortunately never hem greater.
Public recognition
of this fact has hem a major influence In the demand for a pay-as-we-go
program.
We have Jest completed the mat prosperous fire-year period
in our history.
Our capital equipment and productive capacity have been
brought to record levels.
Sbrtlfled by an expanding economy. re can raise more revenue than
we did la World War II and still maintain our national living standards ««
perhaps sot at the levels of
195®»
rlth Its one and a half million nev
homes, si* and a half million new automobiles, and j^etcf million tele
vision sets^l# tN| at levels amply hi# to sustain ths productive energy
of the American people at f 11 capacity.
The initial tar increase revested by the President —
distributed
among individuals, corporations, and other forms of taxation as he has
recommended — is a burden well within the capacity of our economy to
bear.
It is. in fact, substantially below any danger line that might
mean an impairment of the productive efficiency of our economy.
Our present tax system provides U strong foundation on which to
build a fair and effective program of defense finance.
Last
yesr*s tax
Statement of Secretary Snyder before
the Committee on %ye sad tfsua iA
February 5» 1951
2/3/51
__
^
I aporociate this opportunity to discuss with yon. the President fs
tex program for this year.
I believe that you share %rith me tha
President *s conviction that the defense effort uttfft be financed on a
pay-a*-ve-go basis,
A balanced budget policy is essential to our
strength now and will contribute to our strength in the future.
fo^ay our 1stion is in a state of emergency• Pbr the second ties
in less then a decade» we are called upon to marshal * w « H
strength in. defense against the forces of aggression. ( M s defense
will dispose great demands 0» all of as -— ^decsaads that can be met
la fall only by asking the American taxpayer to bear some of the
heaviest burdens iaj^hlstory.
jgflrst and most urgent task is to build up our supplies of
weapons, materials, and manpower as swiftly as possible.
alone will act be enough,
But this A L U
AJllumP^ m9J Lt
fhe essence of cur problem now |p4wQ
maintain our defensive strength over a long period of time.
*• PSMt
sustain productive capacity capable of outdista.ne*ag the enemy, yesr
after year, in both cpmtlty of output and ouellty of technological
skill.
In a very real sense, we must match our program of military anc
["""economic preparedness with a comparable financial program*
fhe
inherent cower otj&emQcmcy is measured not alon&by our capacity to
J -
3
< r
179
mmsmy department
WASHINGTON
Statement of Secx'etary Snyder before
the Gosmiittee on Ways and Means
of the House of Bepresentatives
February 5, 1951
I appreciate this opportunity to discuss with you the
President’s tax program for this year. I believe that you
share with me the President’s conviction that the defense
effort must be financed, on a pay~as-we-go basis. A balancea
budget oolicy is essential to our strength now and will
contribute .to our strength in the future.
Today our Nation Is in a state of emergency. For the
second time in less than a decade, we are called upon to
marshall our strength in defense against the f o r c e s ^ o f ^aggres
sion. This defense will impose great demands on all or us —
and financial demands that can be met in full only by asking
the American taxpayer to bear some of the heaviest burdens in
our history.
The first and most urgent task is to build up our süpplies
of weapons, materials, and manpower as swiftly as possible.
But this alone will not be enough. The essence of our problem
now requires that we maintain our defensive strength over a
long period of time. We must sustain productive capacity
capable of outdistancing the enemy, year after year, in both
quantity of output and quality of technological skill.
In a very real sense, we must match our program of
military and economic preparedness with a comparable financial
program. The inherent power of our democracy is measured not
alone by our capacity to build military defenses but also by
our willingness to accept the costs and to make the economic
sacrifices which the defense effort will entail. The surest
and the safest way to me )t these costs is through current
taxation.
The economic capacity of the Nation to stand this
necessarily heavy tax load has fortunately never been greater.
Public recognition of this fact has been a major influence in
the demand for a pay~as-we~go program. We' have just completed
S-2585
2
the most prosperous five-year period In our history. Our
capital equipment and productive capacity have been brought
to record levels,
Fortified by an «p&nding economy, we can raise more
revenue than we did in World War II and still maintain our
national living standards -- perhaps not at the levels of
1950 , with its one and a half million new homes, six and a
half million new automobiles, and seven million television
sets, but at l e v e l s - h i g h to sustain the productive
energy of the America people at full capacity.
The initial tax increase requested by the President -distributed among individuals, corporations, and other forms
of taxation as he has recommended - is a burden well within
the capacity of our economy to bear. It is, in fact, sub
stantially below any danger line that might mean an impair
ment of the productive efficiency of our economy.
Our present tax system provides a strong foundation on
which to build a fair and effective program of defense finance.
Last year‘s tax legislation is making an important contribution
through increased collections from the individual income and
corporation taxes. A profits tax bill has been passed, and
the Congress is now strengthening the laws for renegotiation
of war contracts.
THE NEED FOR MORE TAXES
The President has indicated our tax goal for 1951*
the course of this year we must add sufficient strength to
the Federal tax system to raise its revenue producing capacity
to the level of fiscal year 1952 expenditures.
The budget for fiscal year 1952 calls for expenditures
of $71 .6 billion. Revenues at present tax levels are estimated
at $55.1 billion. This leaves a deficit of $16 .5 billion to
be covered by increased taxation,
A developing military program necessarily takes time
before it is fully reflected in actual expenditures. In the
early months, when plans are being made and contracts are
being let, the program makes relatively small demands on the
- 3 -
Treasury. But after this preliminary phase has been passed
an upsurge -of military expenditures can be expected. These
expenditures are the measure of manpower and fighting power
being added to our armed forces.
Our military spending is already rising at a rate which
will result in a budget deficit of several billion dollars
by the last quarter of this fiscal year. The deficit will
continue to grow during July-December 1951» For the nine
months from the first of April to the end of this calendar
year the deficit may well exceed $15 billion. Our tax needs,
therefore, are immediate and not postponable,.
I recognize that there are many uncertainties which
complicate the planning of our tax program. We know that
the ultimate demands of our military program will be heavy.
They may unfold more rapidly than now anticipated. We do not
know, therefore, how fast Federal expenditures will expand
or when and where they will level off.
The fact that it is far more difficult than usual to
anticipate the precise unfolding of our tax needs for the
coming fiscal year in no way reduces the size of the Job that
has to be done. In fact, as the President has indicated, the
projected $16 .5 billion deficit may actually understate the
need, if our defense program develops as rapidly as is desir
able. Clearly, taxes can keep pace with expenditures, only
if the major part of the President’s program is put into
effect promptly.
0
■
As Secretary of the Treasury, I have consistenly supported
an adequate tax program for the preservation of our public
credit by attaining a balanced budget.
Most of the present Federal debt was accumulated during
the last war when taxes provided less than half of war-financing
needs. No responsibility presses upon me more constantly than
the proper management of this public debt. Our ability to
support this debt on a sound basis rests, in the last analysis,
On adequate taxation. Deficit financing at this time would
increase the public debt, and would feed inflation. A strong
tax policy holds down-the' size and cost of the debt and helps
protect our savings.
- 4 -
Taxes and savings must go hand in hand. Although much
depends upon a strong tax program, taxes can hot do the job
alone. Every effort must be made to preserve confidence in
the future purchasing power of savings in order to discourage
the spending of accumulated savings and to stimulate new
savings. More than on anything else, the confidence essen
tial to a successful voluntary savings program depends on a
firm tax policy at this time#
Moreover, by meeting our revenue needs on a current
basis, we strongly contribute to the objective of dampening
inflation. A large excess of consumer demand over the avail
able supplies will continually threaten the newly-established
price and wage controls# If an effective fiscal program
accompanies direct controls the taxpayers of this country
will not be required to bear at one and the same time the
heavy burden of increased taxes and the uneven costs of
inflation.
SOURCES OF ADDITIONAL REVENUE
The President has indicated the areas from which $10
billion of the additional revenue requirements can be
obtained. These include about $3 billion from selective
inct'eases in excise tax rates, $3 billion from the corpora
tion income tax, and $4 billion from the individual income
tax. (Table l)
Further rate increases and structural adjustments will
be necessary as part of this program to bring the strength
of the revenue system up to the levels required by our
pay-as-we-go policy.
It is with full confidence in the determination of *the
American people to take whatever steps are necessary to
finance the defense of their Nation, that I urge the adoption
of measures embodying the President's program for increased
revenues at the earliest possible date. The additional $10
billion of revenue now requested by the President will not
be enough to put the Government on a pay-as-we-go basis after
defense expenditures get fully under way in the flQcal year
1952. It will, however, help to cover our immediate needs
181
and make it possible for the Congress to give full consideration
to further tax measures which will provide the needed revenues
in the future, and which will at the same time distribute the
burden fairly and equitably among all of our citizens.
I should like to turn now to the details of the program.
Excise taxes
The President recommended that $3 billion additional
revenue be raised from excise taxes on those consumer goods
which are less essential or which use materials that will be
in short supply.
I know the Committee has special reason to regret the
necessity for this action. Only a year ago you were consid
ering the Presidents recommendation for excise tax reductions.
This reversal of the situation is one more measure of the
price we* must pay for our defense requirements.
In preparing this part of the Presidents program all
of the existing excise taxes have been carefully re-examined.
This list is long, as is shown in Table 2, attached to my
statement.
The Committee will recall that on previous appearances
I have expressed the view that some of the existing excise
taxes, most of which remain at their wartime levels, are not
desirable in a peacetime tax system. I am sure you will
agree that some of these taxes can b e 'justified only in the
light of pressing budget demands and should not be raised
further at this time to meet our.present revenue needs.
The $3 billion revenue objective from excise taxes can
be met by an increase in a limited group of existing excise
taxes.
About $1 . 1 billion can be raised by increasing the tax
on passenger automobiles from 7 percent to 20 percent of the
manufacturers1 price and increasing the rate of a number of
other manufacturers* excises on durable goods from 10 percent
o
to 25 percent. In the interest of equity some electrical
appliances not now taxed should be brought ihto the base
of this tax.
An increase of one-third to one-half in the tax rates
on alcoholic beverages, cigarettes, and cigars would raise
over $1,2 billion. The yield of the gasoline tax can be
increased $580 million by raising the present tax of If cents
per gallon to 3 cents.
The increases for the principal items are as follows:
Proposed increases
in rates
Item
Passenger automobiles«.«<>«••*»»•«
Frost 1% to
2 0
?Estimated
sadditional
5revenue in
tè. full year
(Millions)
$ of mfrs#
$685
price •
.
Refrigerators, television sets,
radios, phonographs, electric,
gas and oil appliances, and
other consumer durables*»9***•*♦
From 10$ to 25$ of mfrs#
price
425
Alcoholic beverages?
Distilled spirits»»•........v* From $9 to $12 per gal# )
Beer#*«■«#o,««•##««•»###**.#■ •# # From
to $12 per obi# )
Wines »**#**#*#**#***•**«♦•*#»* V arious
}
710
C x g a r e x - t s F r o m 7p•
‘•to 10s£ per pach ^
Cx^srs s»»»/;, ). *«»■»%*s-»»»• •o*»c» Various
j
525
0
9
$ 8
1
Gasoline$»##««*••*»•#*.#•#•#«##«#«#
From Ig^ to 3$ par gctl*
Miscellaneous revisions»•»###•####* o•«#;#**#9**•**#«##•■*#*•«
Total»#■«#<*#*#•<>##•«»#
.»»«35
182
- 7 TIig present rate of* tax on most of the consumer durable
goods is 10 percent or less of the manufacturers* price. In
terms of retail prices, the effective rates of these taxes
are low compared with most of the other excise taxes. The
manufacturers* prices of consumer durable goods are generally
about 60 percent of the retail price. The retail taxes and
the taxes on amusements which are now in effect are 20 percent
of the retail price and some other excise rates are even higher
in relation to the price paid by consumers. The increased
rates proposed, which would be at the manufacturers* level,
would average less than 15 percent of the retail prices.
(Table 4)
The taxes on tobacco, liquor, and gasoline are the most
productive of our excises. These items provide a basis for
substantial additional revenue,
The suggested excise tax increases will meet the
President*s recommendation with minimum disturbance to the
defense economy. They will result in little pressure on
price ceilings because they will not add much to business
costs or push up the cost of living materially. None of the
increases proposed is expected to add substantially to present
administrative or enforcement problems. The increases which
are proposed will be helpful in relieving the load to be
carried by taxes that might either impair incentives or
burden basic items in consumer budgets.
In view of the Committee*s possible interest in consid
ering new excise taxes, I believe you would like to have some
of the facts which have led to the suggestion that the
President*s excise recommendations be met from existing revenue
sources.
Present Federal excise taxes reach a substantial propor
tion of all consumer expenditures. For certain classes of
expenditures, the proportion is relatively high. The excise
taxes as a whole apply directly to about 25 percent of total
consumer expenditures. The remaining 75 percent of consumer
purchases, which are outside of the excise tax base, do not
on the whole represent a promising source for additional
excise tax revenue.
~ 8 Table 5, based cf*. a n s w e r expenditures for 19j+9,
shows that present excise taxes now reach more than 66 percent
of consumer expenditures for durable goods. The untaxed
portion is composed largely of such household items as rugs,
furniture., and so forth, •On the other hand, present excise
taxes apply to less than 20 percent of the amount spent for
nondurable goods and services. The ratio is low for these
last groups because th^y are composed principally of food,
rent, and clothing whi#i the Federal Government has generally
refrained from taxing* Extension of excise taxes in these
areas would involve a departure from established policy.
When the Committee takes up the balance of the President’s
program, the pressure for revenue'may require further examina
tion of new excise tax sources. The possibility of selective
additions to the present list is being given further study
with the Joint Committee staff.
Corporation taxes
The Presidentas recommendation that $ 3 billion additional
be raised from the income tax on corporations will require an
Increase of 8 percentage points in the corporate normal tax.
corporate income from 25 percent to 33 percent and the general
rate aorlicabie to income in excess of $25,000 from 47 percent
to 55 percent. On income subject to the excess profits tax,
the combined maximum rate would rise from 77 percent to 85
percent. The ceiling rate now imposed at 62 percent would
have to be raised to 70 percent to obtain the full revenue
effect of an 8-peroentage-point corporation income tax increase,
The tax liabilities under the proposed corporation income
tax rates may be compared with those under present rates by
reference to Chart 1 and Table 6. The chart shows for
corporations of different sizes how the change in rates would
affect those subject only to the income tax. Table 7 illus
trates the effective rates of the combined income and excess
profits taxes under the proposal.
Oj kQ%
H
K
j
- 9 The additional revenue to be obtained from the Increase
of B percentage points in the corporate tax would come
mostly from the large corporations. The 281,000 corporations
with profits of less than $25,000 would pay only 3 percent
of the proposed total liability, while the 42,000 corpora
tions with profits over $100,000 would pay 90 percent of
the total. (Chart 2 and Table 8 )
The level of corporation taxes proposed is dictated by
the need for an equitable distribution of the burdens of
defense consistent with the continued growth of industry,
As shown in Chart 3, corporation profits have continued to
expand. On the basis of conservative estimates which allow
for no appreciable amount of inventory profits, they are
expected to reach at least $43 billion in 1951* The $43
billion estimate for 1951 compares with $40.2 billion in 1950
and the previous peak of $33*9 billion in 1948. (Table 9}
Under the proposed rates, Federal income and excess pro
fits tax liabilities would be increased to $24.5 billion, or
about 57 percent of estimated profits. Even on the basis of
conservative profit estimates and taking full account of
State corporation tax requirements, this would leave corpora
tions with $17 billion income available for dividends and
expansion, or approximately the same as the average for
1946-49, a period of unusual and sustained prosperity.
1 am aware that a corporate rate of 55 percent would
raise serious equity and incentive considerations in a normal
and, stable peacetime economy. However, corporation tax rates
requested during the present emergency cannot be judged by
normal standards.
Opportunities for profit in the years ahead, even under
price and wage ceilings, are great. The defense orders placed
and yet to be placed — added to the large unsatisfied demand
for industrial plant, housing, consumer durable goods and
most articles of current consumption -- assure producers of
a sellers* market in nearly every field of business activity
during the mobilization period. In spite of problems of
securing the materials and labor for their production, business
will have adequate Incentives even under higher taxes to go
10
forward with the job of production. An important part of
our reassurance on this score is the wholehearted ap4 real
istic appraisal by business management of its full responsi
bility in the national effort.
The appropriate level of any one tax is determined
largely by the necessity of balancing the contributions from
each tax source in a way which will best meet the total
demands upon the tax system. In the present circumstances
the increases in corporate rates proposed can be regarded as
a necessary counterpart of increased taxes on individual
incomes and consumers of taxed commodities.
Individual income tax
In order to meet the large revenue goal confronting us,
it will be necessary to rely on the individual income tax -the" backbone of our revenue system — for a very large share
of the additional revenues. The $4 billion increase recom
mended by the President can be provided by raising all income
tax bracket rates by 4 percentage points and by an upward
adjustment of the taxes on capital gains.
A 4 -percentage-point rate increase would raise the
starting rate, applicable to the first $2,000 of taxable net
income for a single person and $4,000 for a married couple,
to 24 percent.
(Table 10). The increases in tax liabilities
for various net incomes before exemptions are shown in Chart 4,
A married person with two dependents and with a net income of
$ 3,000 now pays $488 or 16 .3 percent of his. income in tax.
The proposed rates would increase his tax liability to $5^4
or 19.5 percent of his net income. At the $.25,000 level, the
tax would be increased from $9 *79^ oi* 39«2 percent to $10 ,772,
or 43.1 percent of net income.
(Table 11)
In examining the possible methods of raising individual
income tax yield, consideration was given to reducing exemptions.
The President did not recommend this change because, at current
levels of income his revenue objective can be met by confining
the income tax. increases mainly to those now taxable.
EKRA.TA
Page
10 l Under the heading ”Individual Income Te x ," paragraph 2:
should read as follows;
A ^-percentage-point rate increase would raise the starting
rate, applicable to the first $2,000 of taxable net income for a
single person and $U,Q0Q for a married couple, to 2^- percent,
(Table 10) The increases in tax liabilities for various net
incomes before exemptions are shown in Chart U, A married person
with tvo dependents and with a net income of $3,000 now pays
$120 or h 0Q percent of his income in tax. The proposed rates
would, increase his tax liability to $lW| or U,8 percent of his net
income, At the $25,000 level* the tax would be increased from
$6,2.68 or 25.1 percent to $7,172 or 2_8,J percent of net income.
(Table 11)
185
- ii ■The bulk of any major increase in individual income
tax revenues will nevertheless come from the lower taxable
brackets. Charts 5 and 6, which show the distribution of
income by size classes of adjusted gross income and taxable
income, respectively, indicate that most of the tax base is
in the lower end of the income Scale. (Tables 12 and 13)»
It is^estimated that 83 percent of all taxpayers and 5^
percent of their taxable income is accounted for by the
income groups below
This concentration of income
must be tapped if the tax is to raise enough revenue.
One important feature of the individual income tax
structure is the method of taxing family income. You will
recall that in 1948 Congress adopted universal income split
ting in order to correct tax discrimination between residents
of community and noncovnmunity-property States.
Chart 8 demonstrates some of the effects of income
splitting on the relative tax liabilities of single persons
and married couples. Single persons with income in excess
of $3,100 will nay more tax under the proposed rate schedule
than they paid during the war. On the other hand, married
people in the middle brackets who benefit from the a.ncome
splitting provisions will pay substantially less than they
did during World War II. (Table 14)
There are differences of opinion about the fairness of
the present tax treatment of family income and about the
methods that might be adopted to modify the results^of income
splitting. Several possible courses of action are being
studied by rthe Treasury and Joint Committee staffs. The
Committee* will undoubtedly want to examine this problem in all
its implications before completing this year*s tax legislative
program.
Increases in income tax rates raise another important
structural problem — one that requires more immediate action.
I refer to the preferential treatment of capital gains. Gains
from sale of capital assets held more than 6 months are now
included to the extent of 50 percent in taxable income and
subjected to the regular rates. The taxpayer has the option
to pay a flat 25 -percent rate on long-term capital gains x
this will result in a lower tax.
12
The starting rate of the individual income tax has
risen from 16 .6 percent in 1948 to 20 percent in 1951« If
another 4 percentage points are added to the Initial rate,
the tax on both ordinary income and on long-term capital
gains realized by taxpayers in the lowest tax bracket will
have been increased 45 percent.over the 1948 level. Under
the circumstances, it would be inequitable to leave the
maximum effective rate of tax on capital gains unchanged at
25 percent, or only one percentage point higher than the
recommended rate in the first bracket. This maximum rate
affects only about 5 percent of the taxpayers having
long-term capital gains but this small groups accounts for
more than half the capital gains tax collected from indivi
duals .
The capital gains tax could appropriately be increased
by raising the alternative tax rate from. 50 percent to 75
percent. This rate, combined with the 50 percent inclusion,,
would result in a maximum effective rate of 37i percent.
This increase .over the present 25 percent rate would be in
line with the 45-percent increase in income tax rates adopted
last year and proposed now. A corresponding increase to 37i
percent should be made In the rate of tax applicable to
capital gains of corporations.
Lengthening the 6 months holding period now separating
long- from short-term capital gains would provide more
effective taxation of speculative profits. As a minimum,
the holding period should be increased, to one year.
By this strengthening of the tax rates on capital-gains,
the individual income tax will -be made more equitable. This
tax conforms most closely to concepts of fairness in taxation.
It allows for variations in income, deductible expenses and
family status. It is the fairest method of distributing the
cost of the defense p r o g r a m . I t is also less likely than other
taxes to Inflate the cost structure. As a result of the current
payment system introduced during the war, this tax Is especially
well-suited for quick adjustment to changed financial require
ments. With proper adjustments in Its structure, the indivi
dual income tax can and should contribute greatly to our revenue
objective In the defense period.
18G
- 13 -
Structural revision and enforcement
As the President has Indicated, those who bear heavy
tax burdens are entitled to the assurance that others will
not be permitted to avoid them. The last Congress provided
part of this assurance by closing several important loopholes.
But a number of other important areas remain.
Every effort should be made to correct inequalities in
the enforcement of the individual income tax. The Bureau of
Internal Revenue began a study of this problem with the 19^8
tax returns on the basis of sampling methods which are :.*?
unprecedented in this field. The information obtained from
this Investigation has enabled the Bureau to improve its
procedures and to make more effective use of its limited
enforcement staff.
To obtain maximum compliance requires more than
improvement in auditing procedures. A tax system which
reaches the great majority of income recipients must employ
mass enforcement methods which are as nearly automatic in
their application as possible. The wage witholding system,
for example — now the cornerstone of individual Income
tax administration -- has made a major contribution in
improving compliance and enabling the individual to budget
his taxes.
During the last session, your Committee explored the
possibility of applying the withholding principle to
dividend distributions by corporations. I urge you to again
explore this field. I would suggest that its application
to payments of interest to individuals also be considered.
Fully as important as improved enforcement is the need
for improving the tax structure in those areas which enable
favored taxpayers to escape their fair share of the burden.
One of the major structural defects is percentage
depletion available to oil and mineral producers. This is
costing the Government and, therefore, taxpayers in general,
hundreds of millions of dollars each year.
- Ik Under the percentage depletion provisions, owners of
mines and oil wells are allowed to deduct a specified per
centage of their gross income without regard to the capital
cost of the property. These arbitrary rates of deduction
range as high as 27 J percent of gross income in the case of
oil and may amount to 5Q percent of the net income. Unlike
other capital recovery allowances, percentage depletion
continues to be duductible even after 100 percent of the
investment has been recovered tax free. Thus total, deductions
may eventually amount to many times the taxpayer's actual
investment.
In addition to the highly / avorable depletion allowances,
oil producers can immediately deduct for tax purposes a
substantial part of their outlays for drilling and
development. The amounts of capital investment thus written
off at the outset have no effect on the future percentage
depletion deductions. This results in a double deduction
with respect to the same capital investment,. The combined
impact of percentage depletion and the privilege of
deducting drilling and development costs as a current expense
is to wipe out the tax liability on incomes running into
millions of dollars.
The Treasury discussed this problem at some length with
your Committee last year. The urgency of remedial legis
lation in this area is even greater at the present time. I
urge the Committee to give earnest consideration to the
previous Treasury suggestion that 'the rates of percentage
depletion be reduced to 15 percent of gross income for oil,
gas, and sulfur, and to 5 percent for nonmetallic minerals.
In addition, oil and gas operators who elect to expense
intangible drilling and development costs should be required
to make corresponding adjustments in the basis for computing
their percentage depletion. This would mitigate the double
deduction which compounds the potentialities for tax
reduction under the present treatment.
Another type of structural revision relates to the
treatment of business organisations now exempt from tax,
including cooperatives and other mutual enterprises. This
Committee is familiar with the difficult and controversial
187
-15 problems in this area, having conducted extensive hearings
on this subject in recent years.
During the last session, your Committee found a solution
for some of these problems, such as the unrelated business
income of charitable and educational institutions. The
possibility of taxing the cooperative and other mutual
enterprises was also then explored. I would suggest that
this examination be continued with reference to cooperatives,
mutual savings banks, and building and loan associations
To the extent that collective buying and selling results
in lower buying prices or larger incomes to patrons or members,
these savings enter into their taxable income as individuals.
However, funds which are not returned to members of these
mutual enterprises are available tax free for expansion in
competition with other taxable businesses. We should seek
to apply the corporation income tax to such retained funds.
This would not impair the ability of cooperatives and mutual
savings and credit institutions to perform their traditional
functions of collective buying and selling or pooling of
savings for investment.
The taxation of life insurance companies is another
important structural revision cited by the President to which
your Committee will wish to give careful attention. Por
many years life insurance companies have had special treat
ment which has enabled them to be taxed on a limited portion
of their investment income only. The breakdown of the
taxing formula in 19^7 led to the development of a special
stop-gap provision governing the treatment of these companies
for the years 19^9 and 1959. No one can be more familiar
with the difficult and complex issues in this area than the
members of this Committee who assisted in the formulation of
these temporary provisions. Development of a more satisfactory
permanent solution is another task of structural revision which
will add to the strength of the revenue system.
The present provisions extending preferential capital gain
treatment to profits realized from the sale of business.property
should be revised to meet the growing technical problems and
tax avoidance' opportunities that have arisen in this area.
These provisions are being systematically exploited for the
conversion of what is, in reality, business income, to capital
1
gains. A redefinition of the income base to include thesp
gains, merits your, careful,consideration! :
The treatment of tax~£xempt securities also merits
attention, in. the present situation. The exemption of State,
and municipal securities, from Federal taxation Js a long
standing barrier to the achievement' of equity in the distri
bution of,the individual income tax: burden! The removal of
the exemption privilege;is. made more difficult by the fact; '
that, it,.would increase to some, degree 'the cost of future State
ánd local•borrowing. A reasonable basis can be developed fot
the taxation of future issues of State and local securities
without burdening States and localities excessively.‘
.The>estate and gift taxes áre also in'need of revision
and would contribute to our revenues. In m y :appearance before
your •Committee last year, I presented the results of a detailed
analysis of these taxes. % explained a t .that time thatthe
weakness of the- present estate. •and gift taxes results from:
(1 ) the overly favorable tr.f$tt*nb of property placed in trust
for. several generations^, (2) the opportunity to escape the'
higher estate tax rates by making gifts subject to lower tai
rates, (3 ) the large exemptions, and (h) the ineffectiveness
of the present rate schedule. The last two weaknesses were
greatly magnified by the estate and gift splitting provisions
introduced by the t19^3 Act.
.In the course of this year’s program, the Committee may
also want to consider changes in the structure of•the excess
profits tax, as suggested in the President’s Message. Combined
with legislation on the renegotiation of war contracts, which
is now under consideration in the Senate, an effective éxcess
profits tax can prevent profiteering and contribute to a more
equitable.; distribution of the tax burden. It can also be relied
on to make a,:substantial revenue contribution!
.r
>■ ■,.**
. -'
,
' ■
.:
;
'
*
}
•• .,•
;
(
The proper treatment of these areas of structural revision
is fairly clear .in some cases. In others, the’ general’approach
to a desirable solution has previously been submitted to your
Committee: although the detailed formulation of revised treat
ment, would require further technical study. In still others,
the development of a satisfactory approach must face up; to
difficult-and far-reaching considerations transcending the
revenue factor.
188
- 17 The several tax areas to which I have referred, and such
course
round
ing out the revenue program for this year.
other revenue possibilities as will be developed in the
of your hearings, will all need to be fully explored in
In meeting the costs of defense by current taxation we
are fortunate in the basic willingness of American taxpayers
to pay for national defense and their ability to do so. It
is essential, however, to the preservation of these assets
that we take care to remove the imperfections in the tax
laws which provide means of escape for some and create
unnecessary hardships for others.
May I, in conclusion, assure you of the Presidentrs
appreciation of the vastness and complexity of the task which
the present situation compels him to place in your hands. I
hope that the people throughout the country are aware of the
pace which your Committee and the Senate Finance Committee
have had to set under the force of events during the past
seven months. The Treasury Department stands ready with all
its facilities to supply you with information.and provide
such other assistance as may be helpful in this difficult
task. I am sure that you also have the support and under
standing of the American people in this undertaking.
0O0
Table 1, Bevenue effect of proposed excise,
corporatioa and individual income tax
rate changes
—— *
■
....-1"
1 ,r,r
""“r,n
T
¿Estimated increase
« in revenue in a
«
full year ij
(Millions)
Excise taxes *.**> .........•..... ♦..... « $3,035
Corporation income tax .......... ......
3.0802/
Individual income t a x .... «««••« .......
3,600
Capital gains:
IndividuaIs •••a*******•
*
33®
Corporations.... *........... .......
110
Total ...................... $ 10,155
Treasury ¿apartment
if
February 5, 1951
bx estimates are
The income and capital gains i\
based on levels of income and prices estimated
for calendar year 1951* sad take into account the
interrelated effects of changes in corporation and
individual income tax rates. The excise tax
estimates are “based on levels of income far the
fiscal year 1952*
After adjustment for the short-run effect of the
increased corporation taxes on dividends and the
resulting reduction of individual income tax yield.
The increase in liabilities of corporations in
estimated at $3#s6l in a full year (see Table 8 )«
Table 2.
Bates of principal excise taxes, 1939-1951
* Rates in effect
; Dec. 31 , 1939
Item
A d m i s s i o n s . • l4 per 10/6 or
fraction if 4l4
or more
Alcoholic beverages5
Distilled spirits...... $2.25 per 'oroof
gal.
Rectification...*..**•*• 304 P er proof
gal.
Fermented malt liquor... $5 per bbl*
Sti11 vines*.•*.*»*...»* 54, 104, 204
per gal.
Sparkling vines......... 2^4 P e3?* '
k'.P^v
Business and store
machines
‘Of
$3 per proof
gal.
No change
Revenue Act of
1943 and subseggent acts 1/
No change
l4 per 54 or
major fraction
.$6 per proof
gal.
No change
$9 per proof
gal.
No change
$3 ner bbl.
15f, 6o£, $2
per gal.
■per gal*
74 per ^ pt.
3hj° of.mfrs*
7% of mfrs.
No change
No change
5% of mfrs*
No change
No change
price
5^ 'oX mfrs*
No change
No change
---
price
$*> par year
No change
Repealed 2/
----
$10 per year
No change
$20 per year
per unit
No change
No change
No change
20$ of total
charge Jy
$6 per bbl.
No -change
64» i$4, 304
24v 304» &54
per gai*
fraction on
20^ of charge
154 per % pt.
•price
2^_/o of mfrs*
ÌplFiCB
2§4 of mfrs*
price
par riait
*
Cabarets................ . 1^4 Per 104 or
Tor footnotes,
l4 per 10/; or
fraction
Revenue Act
of 1942
3 4 p e r a pt*
price
Billiard and bovling
l4 per 104 or
fraction if '2l4
or more
Revenae Act
of 1941
$7 per bbl.
104, 4o4, $1
per gal..
104 per pt.
AutomobilesS
Passenger automobiles... 34
®fr$*
price
Trucks and busses.....*. 24 of mfrs*
price
Parte and accessories».* 2$ of mfrs*
Use of automobiles*...*.
Revenue Act
of 19^0
24 per 104 or
fraction on
20% of charge
104 cf mfrs*
pi J-Co'
5$ of total
charge
see last page-
Table 2
Continued
Table 2 - Continued
•
' Hates in effect
; Bee. 31, 1939 ♦
Item
Jewelry......... —
Revenue Act
of 19^0
......
1
Revenue Act
of 19^1
•
1
Revenue Act
of 19^2
: Revenue Act of
* 19^3 end subse:
quent acts l/
20$ of retail
price 10/
10$ of retail
price
Ho change
20$ of amount
collected
Ho change
10$ of mfrs.
price
2^ per M
Ho changé
Ho change
6 é per gal.
Ho change
Ho change
Ho change
20$ of retail
price 11/
Ho change
Ho change
Ho change
Leases of safe deposit
. 10$ of amount
collected
per gal.
Lubricating oils........ .
Luggage.................
amount
collected
Ühè per gal.
— — ..
Matches............
Musical instruments......
Itfo of
—
-— ».
10$ of mfrs.
price
10$ of mfrs.
price
Optical equipment.......
Phonographs and
phonograph records.....
Pho tographi c appara tus *.• *
WWW**
w w w
Photographic film.
Pistols and revolvers.... . 10$ of mfrs.
price
Playing cards........... • 10^ per pkg.
11$ of mfrs.
price
11^ per pkg.
Radios.................. • 5$ of mfrs.
price
:5j$ of mfrs.
pri®e
Ho change
Ho change
25$ of mfrs.
Ho change
10$ of.mfrs.
price
10$ of mfrs.
price
10$ of mfrs.
price
Ho change
price
15$ of mfrs.
price
Ho change
Ho change ’
13^ per pkg.
Ho change
Ho change
10$ of mfrs.
price
Ho change
Ho change 12/
For footnotes, see last page.
Table 2
Repealed
Co&tinued
Ho change
. Bates in effect \
J Dec. 31, 1939
Item
Refrigerating equipment:
Household refrigerators 5$ of mfrs.
price
Commercial refrigerating equip..........
• ---
—
Air conditioning units.
Revenue Act
of 1940
— ».—
Sugar.............. ...... Approx. \j> per
lb.
Telephone and telegraph:
Domestic telegraph,
cable and radio;
leased wires......... 5$ of amount
Toll telephone...,......
5$ of amount
charged 14/
10^, 15$, 20i
Ho change
. r---
Repealed
—
10$ of mfrs.
price
10$ of mfrs.
price
Repealed
—
10$ of mfrs.
price
10$ of mfrs.
price
Ho change
If© change
.Ho change
Ho change
Ho change
"¡111
Local telephoned
.....
— — .
^
Wire and equipment
'■■■'■■•
service............... 5$ of amount
charged
IPcfr footnotes, see last page.
Revenue Act
of 1942
10$ of mfrs.
price
charged 2.4/
International
telegraph, cable and
radio.................
]
;
5i$ of mfrs.
price
Rubber a r t s .........
Sporting goods...........
*
Revenue Act
of 1941
Ho change
Ho change 13/
-----Ho change
- Ho change
Ho change
Ho change
Ho change
10$ of amount .
changed
1 5 $ of amount
2 5 $ of amount
changed
charged
10$ of amount
charged
5^ per 5 0 ^ or
fraction thereof if over
6$ of amount
changed
Ho change
Ho change
20$ if charge
is over 24^
2 5 $ if charge
10$ of amount
charged
1 5 $ of amount
Ho change
8$ of amount
charged
y
Ho change
: Revenue Act of
: 1943 and subse:
quent acts l/
Ho change
is over 24£
charged
Table 2 - Continued
Item
* Bates in effect
* Dec. 31» 1939
Tires.................... . 2-|^ per lb.
Tubes....... •........... .
per lb.
Tobacco î
Cigarettes (small)..... . $3 per M
Cigars (large )...... *•* . $2 - $13.50
per M
.
18^
per lb.
Tobacco and snuff......
Toilet preparations»..... . 10$ of mfrs.
price
Revenue Act
of 19^0
;
Revenue Act
of 19^1
Treasury Department
!?or footnotes, see next nage.
: Revenue Act of
: 19^3 ^ d suhse:
auent acts 1
Ho change
2-§^ per lb.
5^ per lb.
Ho change
per lb.
9^ per lb.
Ho change
Ho change
$3.25 per M
Ufo change
Ho change
Ho change
Ho change
Ho change
Ho change
Ho change
$3.5^ Per ^
$2 .50-$20
per M
Ho change
11$ of mfrs.
price
10$ of retail
price
Ho change
20$ of retail
price
5$ of amount
paid
10$ of amount
paid
15$ of amount
paid 15 /
3$ of amount
paid (coal
hp per short
ton)
Ho change
Ho change
Ho change
Ho change
10$ of mfrs.
price
Repealed
Transportation: *
Transportation of oil by
pipeline................. . k4 >of amount
paid
Washing machines
(commercial)............
Revenue Act
of 19^2
of amount
paid
——— .
Ho change
—
February 5» 1951
Table 2 ~ Continued
Footnotes
1/
2f
3f
4/
fj/
6]
7/
8/
9/
10/
11/
12/
13/
14/
ii/
Rates effective «January 1, 1951* Except where otherwise specified, these rates were imposed by the
Revenae Act of 19^3 *
Repealed "by the Revenue Act of 19^5*
Rate raised to JO percent by the Revenue Act of 19^3 ahd reduced to 20 percent by the Public Debt
Act of 1$44.
Lover rate for amusement devices, higher rate for gambling devices*
Tax on gaming machines increased from $100 to $150 by the Revenue Act of 1950*
For stock without par or face value (a) if actual value is less than $100, 2^ per $20 or fraction
in 1939 and 3^ in 1940; (b) if actual value is more than $100, 10^ per $100 or fraction in 1939 and
11 ^ in 1940.
Ibr stock without par or face value 4j£ per share in 1939 and 5^ ia 1940. If selling price is $20
or over, whether with or without par or face value rate was 5^ in 1939 and 6/ in 1940.
Vacuum cleaners exempted.
The Revenue Act of 1947 provided that articles made of fur are taxable only if the value of the fur
is more than three times the value of the next most valuable component.
Watches retailing for not more than $65 and alarm clocks retailing for not more than $5 taxed at
10$. Silver plated flatware exempted.
Handbags, wallets, etc. added to tax base.
Tax extended to television sets by the Revenue Act of 195^»
Tax extended to household units for the quick freezing or frozen storage of foods by the Revenue
Act of 1950*
10^ per message for cable and radio messages.
The Excise Tax Act of 1947 exempted payments for transportation, any part of which is outside the
northern portion of the Western Hemisphere, except with respect to any part of such transportation
which is from dny port or station within the United States, Canada or Mexico to any other port or
station within the United States, Canada or Mexico.
Table 3*
Proposed changes in excise tax rates and estimated increases in revenue
Item
Tax
base
*
.
Estimated
revenae 3 f
lIncrease
Proposed
rate
Present
rate
Present
law
: under
$12
$]L.750
670
12
$2 50^, ipi.50, $3 ( . so
*329
:proposal
(Millions)
Alcoholic beverages
Distilled spirits
Beer ........... c
Still **ines .....
Sparkling wines .
Total........
Proof gallon
Barrel
> 1ion
Half pint
Tobacco
Thousand
Cigarettes
Cigars (see Schedale i ) ........... . • Thousand
Total*....................... .
Manufacturers* excises
Gasoline . . . . . . . . . . . . . 1 , i.*. ;W J-i\ Gallon
Automobiles*.*•'♦.* •«..*•.*. w W V «■,/..,>
«■■* Mfrs«- price
Eiectricç gs-s„ and 0%1 àppiiances. ,0.■Mfrs* pried
Refrigerate re » i.V........ii............ ; . Kfrsc. priee
Radios,, television sets, phonographs*
phonograph records, musical
instruments.i...........,....... ^ . Mfrs. price
Total....*
t...................
$.9
g
lb p,
. 6oi,
XÒè, 3.5
15(5, £2/5
:
gt z.
IÓ1>
3^ •
20$
25"’ sf
loi
'
;
;
501
25
h.a*
*X1«F’
•?
H ♦& e
n.â.
25^
25"
706
1,306
43
1 .3%
» 1.50 -$37.50
1 ■.io-* ■
90
(
- : <>.500
»5
$3.50
$2*50 - ÿ ?0
C.Qi ,
521
6S7
•
•90
■ n.a*
;;
2^8
S7
1,693
U09
Miscellaneous (see Schedale B ) ............
Treasury Department
_
IQS
- February 5* 1951
1/ Bull—year effect at estimated fiscal year 1952 levels of income.
2J Tax to include tlie following household type of electrical appliances: vacuum cleaners, washing
m a c h i n e s . m a t e l e s ,d i d h " > a s h e r s , d r y e r s ,
rniitis, a n d r a z o r s .
seeing machines,
floor polishers
a n d w a xers,
garbage
disoosal
Continued
Tal»!e 3
Schedule B;
Miscellaneous excise tax proposals
:
Bate
;
Item
:
:
Present law
Proposal
:
Estimated
revenue l/
Increase
Pres ent
under
/law
proposal
' (Miìli ons)
Bowling HXXlQfo
billiard tablet
#20 |ter year per
table or alley
# 0$ of charge
for use
*
$H
$20
Purs
20$
of retail price
is component
Of chief value
62
25
0
6
of retail price
if fur is m i n e d at
sore than three
times the next most
important component
$£ fur
of charge
Golf green fees
$fa tax
Jewelry
$0# of reto.il price;
10$ for watches
selling for not more
than 065 and alarm
cloaks for not more
than $5
Extend tax to silver
plated flatware, cer
tain fountain pens,
and. make rate 20$ on
clocks and watches now
taxed at 10$
222
54
Toilet preparations
20$ of retail price
Extend to shampoos
containing more than
5$ of saponaceous
matter
121
3
ho9""
Total
X / ÏTcCLX y e a r
effe c t a t
estimated, f i s c a l
1952 levels
o f inco m e .
TÔW
Cable H-# Present and proposed excise taxes on selected items
as percent of retail price including tax
V+Z«
_
1_
: "Present : Proposed
i
law
: taxes 1 /
Excises for which rate increases are proposed
Distilled spirits .....
Cigarettes
...... .........
Sweet w i n e ..... ....... ............. .
e
Beer .......... ....... '»•••«* *» •«•«« -**#« •
Bowling alley and billiard table charges...
Passenger automobiles
Electric, gas, and oil a p p l i a n c e ]J* • •••«,
Refrigerators ........................».
Radiosj phonographs, televielon seta .....
Musical instruments ........... ..## , •
Sporting goods » , . . . . . . . . . . . . . . . . . . . . . .
Cigars ,..... ...... ♦ . ......
Phonograph records ...... .
Table wine ..........e....................
Gasoline ............
Hoi
H6$
3k
H-3
31
15
15
!/
5
6
6
6
6
6
9
5
H
6
21
17
15
15
15
15
15
15
lH
13
13
li
Excises on consumer items ior which no rate increases are proposed
Toll telephone and telegraph services ....
Admissions and cabarets
Retailers 5 excises (furs, etc.)
.......
Leases of safe deposit boxes....... .
Club dues
....... ............. .
Local telephone service ............... 0..
Manufactured tobacco ...................
Photographic apparatus . . . . . . . . . . . . . . . . . . .
Transportation of persons . . . . . . . . . . . . . . . .
Electric light bulbs . . . . . . . . . . . . . . . . . . . . .
Matchek .„r_Tt,T(r,,jr...Tr.. . . . . . . . . . . . . . . .
Photographic film ................. .
Tube s .......................... .. »
T i r e s ..... T..................... .
firearms
......... .
Lubricating oil » . . . o * * « . . . . . . . . . . . . . . . . . .
Treasury Department
20$
17
17
17
17
13
13
13
13
9
9
9
g
7
6
5
February
5» 1951
1/ Assuming no pyramiding of proposed tax increases.
2j The present tax is an annual charge per unit and cannot be
expressed as a percent of charges for use of the facilities.
¿/ Under the proposal, the tax would be extended to certain items
not now taxed.
Table 5 * Amount and |rroportion of consumer expenditures
directly
to federal excises, 19^9
(Dollar amounts in millions)
t
i
î
Total
'
•
!
Amount
subject
to tax
Percent
subject
to tax
Consumer expenditures*...» »..... ,.,
$178,832
$ho,609
22.7
Food and tobacco..........
...».
Clothing, accessories, and
jewelry................
Personal care.....
Housing.......... .
*.3....
Household, operation*.............
Medical care and death expenses,..
Personal business,.... f..
.
Transportation
.........
Recreation...... ........ .........
Private education and research*...
Religious and welfare activities..
Foreign travel and remittances....
62,890
13,086
20.8
22,620
2,200
i.5**9
565
0
6.8
Treasury Department
Sources
durable
...........
non—
....... .
. 8,990
? , W »7
1 9 ,3 7 3
5 ,1 2 9
0
U9
1^,930
25*7
0
21,8
0
a
1 ,0 5 1
0
0
0
77*1
52.1
0
0
0
23,8U1
1U,719
61.7
9 8 ,5^1
56,^50
18,300
18.6
10,1S.U1,566
%
777
5 ,3 0 1
7 ,5 8 4
f-J
Total expenditures for
commodities ..........
Total expenditures for
durable commodities
Services *
1 7 ,2 0 3
2 3 ,5 3 1
February 5 » 1951
Survey of Current Business, Department of Commerce, July I95O.
1 kQt:
J
Table 6. Corporation innora© taxOliaMlitiea* under
19 46-19U9 , present and proposed rate© 1/
Fet
income
*
*
ip®-'
T
194 9
$ 1,050
2,200
4o,ooo
13,700.
50,000
C
0Ti
0
0
0
$ 5,000
10,000
25,000
30,000
75,oqo
100,000
2003000
500,000
1,000,000
10,000,000
1 0 0 ,0 0 0 ,0 0 0
%
Pffect.ive income tax rates
Income tax liabiltt1*$
Present
! lav 1/ 2/
5,150
$ 1,250
2,500
6,250
1 f^r^osed *
trate# 1/ 3 /*
$ 1,650
3 .3 0 0
13,300
3,250
11 ,'000
16,500
19,000
1 3 ,0 0 0
22,000
2 2 ,3 0 0
2 3 ,5 0 0
3 3 ,0.00
22,700
2 7 ,5 0 0
3 5 .7 5 0
3 ,4 0 0
s,6bo
76,000
2 9 ,7 5 0
4 1 ,5 0 0
3 3 ,5 0 0
190,000
229,500
3 3 0 ,0 0 0
3 ,3 0 0 ,0 0 0
3 S ,000,000
Treasury Department
49,500
104,500
269,500
4 6 4 ,5 0 0
544,500
5,494,500
4 ,6 9 4 ,5 0 0
46,994,500 54,994,500
1 9 4 4 - t JPresent • Proposed
1949
? lav . * rates a
21o00$
22.00
23o00
2 3 ,0 0
3 4 ,2 5
3 3 »00 $
33*00
25.00$
25.00
25.00
26,67
33*25
■ *60oo
3 3 .0 0
3 3 .0 0
33*00
3 3 .0 0
3 3 ,0 0
39 067
4 1 .5 0
4 4 .2 5
33,000
3so00
4 5 .9 0
4 6 .4 5
37.S3
3 3 ,0 0
46.95
33,00
4 6 ,9 9
33.00
.36.67
•
4 1 .2 5
4 4 .0 0
4 5 .3 3
4 7 .6 7
4 9 .5 0
5 2 .2 5
5 3 .9 0
. 9 4 .4 5
' 5 4 .9 5
5 4 .9 9
February 5* 1951
1/ Does not include 30 percent tax on excess profits«,
2y Formal tax, 25$ on all income* surtax, 22 $ on income over $25,000.
il Formal tax, 33 $ on all income; surtax, 22 $ on income over $25,000,
Table 7 * Effective rates of total income and excess profits
taxes under present law and proposed rates for corporations
with current incomes of $1 0 0 ,0 0 0 » $ 1 ,0 0 0 ,0 0 0 , and $1 0 ,0 0 0 ,0 0 0
if
Current :
Current income
income as:,
$10,000, 000
$100, 000__ '
^ $1,<S11,000 __ _ :
a percent:,
Proposed ; Present
: Proposed
: Proposed Present
of base : Present
:
law
: raten
rates
law
rates
law
period :
70 $
SO
85
90
100
110
120
130
Hi.5$
Hi.5
Hi .5
H3.2
U6.0
H9 . 5^
H9 .5
H9 . 5
5 1 .2
5H.0
56.3
Hs .3
5 0 -3
5 1 -9
5 3 .3
•
5 8 *3
5 9 .9
150
l60
170
56.5
61,3
62.5
63.6
6U. 5
170.63
56.6
6U*6
180
176.5
5 7 .1
5 7 .3
65.3
200
58*8
140
190
268.V
5H.5
55.6
58.1
62*0
Treasury Department
65.1
66*1
66.8
70.0
U6*5$
U6*5
H6.5
Hg.l
5I.O
5 3 .3
5 5 .2
56.8
5 8 .2
5 9 .5
60*5
61.5
61.5
62*0
62.0
62*0
62.0
62,0
5 H.5^
5H.5
5 H.5
H6.9#
H6.9
HS.9
Us. 6
5 1 .H
5 H.9 $
5H.9
5 H.9
5 3 .8
56.6
59 .H
61,8
63.2
6U*S
66.2
67.5
5 5 .7
5 7 .3
5 8 .7
5 9 .9
68*5
6 9 .5
6l.O
6 3 .7
6 5 .3
6 6 .7
6 7 .9
61.9
69.5
70.0
70.O
70,0
70.0
62.0
62*0
56.1
5 9 .0
61.3
10.0
62,0
62.0
62.0
62.0
69.0
6 9 .9
10.0
10.0
10.0
10.0
70.0
70.0
February 5 » 1951
1J Present law: Normal tax, 25 $ on all income; surtax, 22$ on income
above $25,000; excess profits tax, 3°$ on income in excess of 85$
of average base-period income; maximum effective rate limitation,
62$ of all income.
Proposed rates:
Normal tax, 33 $ on aH income; surtax,.' 22$ on income
above $25,00Q; excess profits tax, 3°$ ®n income in excess of 85$ ^f
average base-period income; maximum effective rate limitation, 7°$
of all income.
®a*ble 8, Est ima,ted distribution of taxable corporations,
net income and tax liabilities under present law and
proposed rates, for calendar year 1951
Taxable
net income
class
f
i
Income' and excess
Taxable î
ïKumber ofî
•
profits
tax liabilities
net
îcorpora- j
«
î Present J
income
, Proposed ’ Increase
î tions
i
i
law
1/
*
rates 2/ *
*
•
2/
î rates 1/ •
«
m i x ion ju--.,râu---w
0 - $ 25,000
$25,000 50.000
50.000 ~ 100,000
100.000 and over
Total
281,200
h 9,& )0
2 7 ,7 2 0
hi f 680
$ 1.953
U694
1.959
35.154
M O O , 000
ho,760
$ 488
562
871
1 9 .0 7 1
$ 644
69?
1 .Q28
21,883
2 ,8 1 2
2 0 ,9 9 2
24,253
3,261
$ 156
135
157
Percent distribution
0 - $ 25,000
$25,000 50,000
50.000 - 100,000
100.000 and over
Total
Treasury Department
Note.
7 0 .3 <^
12.h
6 .9
10.h
100.0
h.8 f
o
h.2
h.8
86.2
100.0
2 .3 ^
2 *7
2 .7 ^
2 .9
4.855
4 .1
4 .8
h.i
90.8
h.2
90.2
86.2
100;0
100.0
100.0
February 5» 195Ï
Figures are rounded and will not necessarily add to totals.
If S
i ndes ^Pital gains subject to alternative tax, amounting to
$800 million.
2/ Excludes $200 million of alternative tax on capital gains under
present law.
II Does not take account of an estimated $181 million decrease in the
yield of the individual income tax resulting from decreased dividend
payments in the short run because of the increase in corporation taxes.
Table 9* Corporate profits before and after taxes*
dividends and undistributed profits* 1929* 1932, 1939-1950
(In billions of dollars)
s
t
t
1 Corporate
Year
or quarter
s
s
•
1929
1932
1939
1940
¿991
profits
before
taxes
Taxes
j
$ 9 .8
- 3 o0
6,5
$ 1 .9
9*3
2 .9
7«8
iio 7
19U2
l?o2
21*1
,4
1*5
i Corporate »
t
M Undis
profits
i
♦ Dividends •* tributed
i
after
«
f
î ..taxes
i profits
l
1
$ 6*4
- 3.9
5 »o
6 ,4
9*4
9.9
2 *6
3*8
4 «0
25„1
l4 04
2 9 .3
1 9 .7
2 3 «5
- 1 3 »5
11*2
9 .6
8 .5
9.5
9.7
9 .?
!3 o9
5 .8
1997
194s
194 9
3 0 ,5
3 3 »9
2 7 .6
4 o, 2
11*9
iso
20.9
1?*0
1950 v
io,6
10*6
2 1 *9
2*4
9.5
9.3
1993
1944
1945
1946
13» 0
10*6
is . 3
$ 2*6
- 6,0
1* 2
$ 5.8
6.6
7 .5
7*8
8*9
9.9
5a
•
6,2
6a
3*8
sa
12*0
13.9
9a
13*0
Annual
WtatMwMMMUlMCSMMPWsWarates« seasonally adjusted
194 s
1st«
2nd,
3 rd,
4 th,
quarter
quarter
quarter
quarter
3 2 .5
3 4 «6 . .
3 5*3
3 3 »i
quarter
quarter
quarter
quarter
2 8 .3
2 6 ,4
2 6 ,2
1 2 *4
20.1
7.2
13.2
21*4
1 3 -9
1 2*9
2 0 .3
7®3
7 *5
7*9
I0 o9
10*0
10*S
10.6
17*4
1 6 .4
1 7 o3
7*9
7*7
7 o4
1&.9
8.2
13.2
16« 5
20,6
2 3 o5
16.0
20.9
8*2
21*9
12,9
i4 a
l4 * 4
12*4
12ÎÜ
1st*
2nd,
3 rd,
4 tho
27.6
9 .5
8.7
10.0
8.7
i m
1st«
2nd,
3rd,
4 th,
quarter
quarter
quarter
quarter 1/
29.2
3 7 .9
Î6 . 4
4so0
2 5 .6
29,5
Treasury Department
1/ Estimated by the Council of Economic Advisers,
Sourcei
Department of Commerce,
sa
9 .9
9*8
7 .9
12*7
l6 .4
1 9 .7
February 5,” 1951”
Table 10*
Individual income tax rate schedules:
Highest wartime rates, present law, and proposed rates
t
*
Surtax net income
:
3.950
;
act 1/ *
* (Present
*
rates)
*
*
♦
Proposed
rates
•
•
2k4,
0
$2,000
4 C0 Q 0
6,000
-
$2,000
6,000
6,000
29
20#
22
26
33
30
6,000
10,000
12,000
l4 ,0 0 0
~
-
10,000
12,000
1M00
16,000
37
il
34
36
50
*7
16,000 -
1 6 ,0 0 0
1 6 ,0 0 0 20,000 -
53
50
20,000
22,000
26,000
56
59
53
.56
62
59
65
66
62
65
69
66
69
72
76
22,000 §6,000 32,000 -
3 6 ,0 0 0 4 4 ,0 0 0 -
23$
Moo
32,000
3 6 ,0 0 0
fc,ooo
50,000
50,000 60,000 70,000 -
60,000
70,000’
6 0 ,0 0 0 -
90,000
90,000
100,000
150,000
200,000
6 0 ,0 0 0
~ 100,000
- 150,000
- 200,000
and over 2f
"Treasury Department
1/
2/
act
: (Highest
wartime
f
a
rate's)
72
75
7g 1 61
64
37
90
92 . .
93’
94
■ -7 5
7S
61
64
26
30
34
33
42
47
51
54
57
60
63
73
' '
79
62
65
66
67
91
39
90
91
94
95
h
February
lypq.
Revenue Act of 1950 rate $ , .applicable to I95I incomes,
Subject to the following; maximum rate limitations:
Revenue Act of 19 4 4 and proposed rates, 90 percents
I95O Act; 67 percent*
Table 1 1 * Comparison of individual income tax liabilities under
present law 1/ and proposed rates
Single person - Ko dependents
Net income
before
exemption
$ mo
l t000
1,500
Amounts of tax
•Present
law
J Proposed
*: rates
$ 40
go
iso
0,000
3*oéi
Ha
1,7*1
10,000
. 15,000
20,000
25,000
50,000
100,000
500,000
1,000,000
Increase over
present law
• j
Sffective
Presenti Proposed : Amounts
lav?
• rates ’• of tax : : rate s
26,38s
66,7 9 S
.
g.o
12.0
9*6
iH* 4
336
p4
1,120
a.cp
l 4 .0
i£ . 3
m i
fsg.,3
16.8
5 *o$
5 , 0 S^
7 ,7 1 8
10* m
2 9 .7
3 4 .7
3 9 .2
2 8 ,j>64
5 2 .2
66,8
70,77^
kss,2 jk
1019,250
■ 8 5 «9
870,000 2/ 900,000 j/ S7»o 2/
l’or footnotes, see last page
6.o$
$H
96
a6
£|4 *¥
6,942
9,796
,
Effective rates
22.H
20.0$
20.0
20.0;
176
gQ.p
2*8
?*S
20.0
Ì-0
*v . 7i
3 .5
3 .7
16.6
376
576
776
976
3 .S
3 .S
3 .9
3^9
56 ■.
2 8 .1
3 3 .5
38,6
43.1
56.7
70.2
^.9
99.01 /
•
1*6
0 '•
$8
16
‘36
'
Tax increase as
percent of ~~
Present s-^Qt income after
law. tax: present law tax
i
96
1 ,9 7 6
3 ,9 7 6
1 9 ,9 7 6
30,000 1
X,Cp
4 *o
4 *g ;
4 .C
3 .0 -
1 8 ,6
•
1.1$
J
3 .3
3,8
j
15X
4 .5
4 ,8
5 .0
5 .5
5 .9
6*4
. 1 2 ,9
. 11,2
10,0
;
1 .7
2 ,7
7.5 m
"6,0
12.0
4 .7
5*4
2 8 .2
2 3 .1
■:
8*4
Table 11- Continued
Married person - No dependents
0
Amounts of tax
Net income •
before
: Present : Proposed
exemptions :
law
: rates
1,500
2,000
3,000
5,000
S,000
10,000
15,000
20,000
25,000
50,000
100,000
500,000
1,000,000
$
Notes
60
l60
360
760
l,**l6
1,888
3.260
It,872
6.72U
$
19,592
52,776
**03,5**8
858,5**8
•
* Effective rates
•
î Present : Proposed
: law * rates
$ 72
I92
^32
912
1,688
2,2*10
3,812
5,62**
7,676
21,5*1**'
56,72s
*123,500
898,500
U.o$
8.0
12*0
15*2
17*7
**.8$
9.6
lU.U
18.2
21*1
22.**
18.9
21.7
2*U**
26*9
25.**
28.1
30.7
39*2
U3.1
80.7
85.9
gi+.T
52.8
56.7
S9.9
î
Increase over
:
-present law
: Amounts : Effective
: of tax i rates
$
12
32
72
152
.85?
1.6
2.**
272
3.0
3.1*
352
552
752
952
3.5
3.7
3.8
3.8
1,952
3,952
19,952
39,952
**.0
**.0
3.9
H.o
Tax-'-tncrearse'oas;-ie
percent, of.— * :
Present! Net income after
law tax: present lav tax
20.0$
20.0
20.0
20.0
19.2
18.6
16.9
15.**
1**.2
10.0
7.5
^.9
it.7
.8$
1.7
2.7
3.6
U.l
**.3
U.7
5.0
5.2
6.**
S.lt
20.7
28.2
Assumes all income is owned by one spouse*
For footnotes, see last page.
CD
co
Table 11- Continued
Married person - Tw£r dependents
Net income
before
exemptions
$
3,000
5,000
8,000
10,000
1 5 ,0 0 0
‘ 20t000
- 25,000
.50,000
100,000
500,000
1,-000,000.
*
*
0
Amounts of tax
Present
law
ï
?
Effective rates
]
Proposed ; Present : Proposed
*
rates
law
. rates î
$ 120
5»
1 ,152*
$• 1 4 4
624
1 ,5 9 2
1 ,8 9 6
3 >4 o4
5,i®K
7 ,1 7 2
* 2-2*3
25.1
2 0 ,7 2 3
37.s
2,900
■4 * 4 6 4
6,26s
1 8 ,Sg4
5 1 ,9 1 2
4os, 4$6
1 ,3 7 6
.5$,m£
422,360
397,360
'4 .$
' u*<$
10. 4
"
17.2
15 «9
19>3
19.0
22,7
25. g
4-1 .6
55.2
:
2 4 .5
89*7
.. Tax increase as .
percent of -—**
Present:Net income after
law tax’
, ore sent law tax
20.0fo
20.0
19.4
.£#
‘ 2.1
2.8
304
504
3 .0
704
904
28*7
51.9
S 5 -7
$ 24io4
224 -
1 2 .5
Ikjl
8 0 *5
Increase over
•oresent law
^Amounts ; Effective
of tax ï
rates
1,904
3,904
19,904
■ 3 9 .9 Q4
19*1
■ 3.4
‘ 3*5
3.6
■ ?*6
-4 .2
4*5
4 .8
3 «S
10.1
IS
6.1
8.1
4 *9
r -v .4 . 7
2 0 .4
2 8 .0
1 4 .4
4*0
4 .0 .
Treasury- Department
Note;
February 5 * 1951
Assumes all income is owned by one spouse,
1/ Revenue Act of 195®» rates applicable to 1951 incomes*
2/ Taking into account maximum effective rate.limitation of 87 percent*
i/ Taking into account maximum effective rate limitation of QO percent*
Ta.'ble 1 2 « Est;ima.-ted distribation of taxable irwi-i-sr-?ristai
3.3
17.4
1 5 .8
■ 3.9
■
.855
2 .3
4*
-5
Table 12. Estimated distribution of taxable individual income tax returns, income
and tax liability under present and proposed rates, for calendar year 1951
Aajusted gross
income class 1 /
Numb er of
taxable
returns
(000)
Adjusted
gross
income 1 /
Tote
Sur 13X "
net
*Present
income 2/ I
tax
Proposed
rates
law
1/
Increase
------ Mi 1 lions— — — — — ■*
Under
$1,000
2,000
3,000
-
4 ,0 0 0
-
-
-
$1,000
2,000
3,000
4 ,0 0 0
5,000
Under* $5*000
10,000
5 ,0 0 0 10,000 25,000
50,000
25,000 50,000 — 100,000
100,000 250,,000
250,000 50c*,000
500,000 - 1,000,000
1 * 0 0 0 ,0 0 0
and over
$ 5 .0 0 0 and over
Total
1 , 9 7 1 -7
60608*5
10,329.2
9.396.7
6 , 2 1 7 -2
34,523,3
5 ,5 1 5 - 9
' 1 *3 5 2 *7
232»6
60.9
1 9 *3
2*4
.6
o2
$2 4 8 .7
$1*606.7
U.0 2 9 .3
1 0 , 3 3 3 .1
26,063.8 1 0 , 0 6 6 .7
32,716.1 13#232.9
27.63S.0 1 2 , 7 9 3 * 2
9 8 , 357 ^5 " ÏÏ0 7 3 9 1 .5
3 6 , 1 1 2 .9
1 9 , 6g?.o
7 , 7 2 0 .0
4 , 6 4 9 .0
2 , 7 5 5 .8
gl4 *o
4 2 8 *0
3 9 1 *0
7 ,1 9 2 * 7
72,ol7*o
41,716.0
1 7 0 9975«3
21,163.6
1 4 , 9 2 4 .5
6 , 5 4 6 .7
3 ,$02.1
805*9
2 , 0 1 8 .6
2 , 6 *5 6 .5
2 . 5 7 5 -1
if
2/
]jj
.
8,105*8
2,139 a
545.4
251^0
246 <>1
4 9 , 6 1 $ *6
2 5 3 -9
2 $3 .J
1 4 , 2 7 6 *8
9 0 ,0 1 0 . 1
2 2 ,3 ^ 2 * 6
2 , 4 2 2 .1
3 , 1 3 5 .3
3 , 0 8 6 .9
9 . 7 2 1 ,5
$9 *9
161.2
403.5
5 2 9 *3
511*$
1, 6 1 5 * 7
5.179-2
162.9
2 .^3 7 * 7
l.9 $ $ -4
1,1+71.2
^.332.7
3 . 571*9
2.175.3
1,836,3
1.335.6
1+67.3
Treasury Department
No te:
$59.6
967.I
$*+9,7
8 4 6 .5
5 9 7 *0
K
261.9
152*1
85c 6
21.8
10.0
4 89*1
.
263,9
263.1
9 - 3 ..
9$ 4.7
1 6 ,2 6 1 . 5
1
2 5 .3 3 3 - 0
3 , 6 0 0 o4
,
February 5 ;
1 9 5 1
Figur es are rounded and will not necessarily add to totals*
Heturns of estates and trusts are classified by size of total income before deduction of
amounts distributable to beneficiaries.
Excludes amounts subject to the 5 0 $ alternative rate on long-term capital gains
Includes surtax* normal tax, and alternative tax.
Table 1 3 *
Estimated cumulative number cf taxpayers, tbeir surtax net income, and combined normal
tax and surtax, distributed by surtax net income brackets, for calendar year 1951
Cumulated
net incarne
number of
bracket
.
:
:
taxpayers l/i
(000)
:
Tetal
Single persans, estates, and trusts
Married persons
Surtax
Surtax
net
income
Normal
Cumulated
tax
number of
and
.
Normal
Surtax
net
income
taxpayers.
surtax
(000)
:
:
number ©f
and
:
taxpayers
surtax
:
Normal
Cumulated
tax
Surtax
51,729.7
$ 47,157.0
8,001.5
6,820.7
$ 9 ,4 3 1 - 4
1 ,7 6 0 * 3
921*8
4,000 -
¿,000
6,000 -
16,Ööd
8,000 10,000 -
i ß ..000
12,000
620 8
12,000 -
14,000
436.4
1 ,4 7 0 . 9
1,038.3
781.9
389.3
20 ¿*3
176*7
28806
2,467.7
1,318.1
3 /5 4 5 * 4
2,206.5
895.8
14,000
lé, 000
16,000 -
18,000
343»3
274.1
18,000 20,000 -
20,000
22,000
23 4 ° 9
'18300
22,000
26,000
26,000 32,000 -
32,000
38.OOO
1 4 5 -7
100*3
38,000 -
14,568.0
2,620*5
661.9
584.O
275.4
■500.1
192.8
$ 15,541*8
. 2,470*0
(000)
V/T-»T 1*5 *-«
1 T
MlJ-XlUllu
$ 3,108*4
66,360.7
9 ,4 4 1 .1 ,
790.1
543*4
205.4
, 461.5
309*0
138.5
105.1
1 ,5 9 3 * 4
1,088*6
-,
$ 62,698*9
3 ,0 5 1 .7
2,303.7
4 /3 3 5 * 5
2,668.0
1,127.2
1,779.9
605*2
1,273.5
966*5
483.9
415*6
755.8
609.6
304.8
488.4
258.8
I38.O
235*2
184*6
89.4
99*2
79-4
535.6
6o8.o
285.8
244*8
7 9 -9
65a6
147*7
120.0
69«4
60*0
423.3
489.6
54*4
45.0
99*1
81.0
5 2 *5-
339.7
289.3
45*4
228.0
3960 é
222*1
37.8
75*9
85*6
183.5
617.7
364.5
392.8
3 0 7 &2
27.3
127.6
633.5
61.1
212*4
18*8
99*2
64.5
79-9
44,000
43*6
227 « 2
15608
13.6
44,000
50,000
50,000
60,000
33.I
21,4
i8oc8
189.1
130.2
141.8
11*2
7 5 -7
61.7
52.3
57.2
44*2
425*9
3 0 2 .9
2 4 2 .5
60,000 -
70,000
18,1
9*3
608
7 7 -7
55.6
70,000 -
80,000
80,000 -
90,000
11*1
8.2
125..7
87.5
98.0
90,000 - 100,000
100,000 - 150,000
5 -5
3.6
150,000 - 200,000
Over 2 0 0 ,0 0 0
Total
2.0
52o3
12802 •
6lo2
172*5
68 ,602*4
4*6
70.9
52.7
6 s?c7
21,407*7
i/ _
_
_
_Marrie¿L oouplo s
141.4
104.5
27^,3
24*3
15.7
11.7
8.6
95*2
80«. 2
63.9
6.4
200.0
79*9
69.7
178*0
3 i«5
111.5
5,213*0
2*9
1.2
96.2
295.0
-90,010.1
86.6
268.4
21,963.0
30.7
24*9
£3_rL±ng jo i n t
February 5, 1951
not necessarily add -to totals.
r e tu rn s
a re
count ed as
two
taxpayers
276.9
209.0
174.6
200.1
129*0
43*4
33.6
32*5
3 5 *o
122.5
355*2
2é6. 8
181.3
27*9
71.8
2*7
*9
*4
55*1
157.0
16,750.0
44*4
58,3
41*5
3*5
3*0
45*5
114.1
Treasixry Department
Figure s are.rounded and m i l
800.4
3 9 4 .5
336.2
4 9 5 .5
326.7
Nctes
$ 1 2 ,5 3 9 * 8
1 0 ,4 7 1 * 5
-12806
1380 0
»7
—.— ---1
758.8
3 1 5 -5
489.1
.
and
surtax
income
..IVlüXiOIiü
0 - $ 2,000
2,000 4,000
tax
net
each wirfcla l i a l f
o¥
the
combined
snir^tax
net
d
.120ome^
Ta/ble id. Amovoits and. e f f e c t i v e r a t e s o f i n d i v i d u a l i n c o m e "tax
E e v e n u e A c t o f lgdd, p r e s e n t l a v 1/ a n d p r o p o s e d r a t e s
Single person — Ho dependents
Bet income *____ . ...
before
•
19^ '
'exempti n ■■ 5
0
$600
goo ,
1,0 0 0
1 ,3 0 0 ,
act
Effective rates
Amounts of tax
Jre sent
law
P -Z
. 69
115
230
Proposed;
rates
Proposed
râtes
3 . 3$ ~
8 .6
1 1 .5
1 5 -3
5.0$
s .o .
1 2 .0
9 *6
i 4 .4 .
«
6 .0 #
o&rs
GôU
‘TOO
pkl|.
1 7 .3
1 9 .5
22a
25*4
i4 .o
1 6 .3
is .9
2 2 .3
16..S
19»5
2 2 .4
26..0
2 7 .6
32*9
37*9
4 2 .4
2 4 .4
2 9 .7
3 4 .7
•39 «2
2 3 .1
3 3 .5
1 ,7 3 0
336
5 S4
1 ,1 2 0
% 0 76
10,000
15 »000;
20,000
25,000
a ¿ f i»
kc* 70*2/3
7 ,5 8 0
10 .,590
2 ,4 3 6
4 , 44g
6 ,9 4 2
9 .7 9 6
2 312
5 ,0 2 4
7 .7 1 3
10 ,7 7 2
V
Present
law
$4 g
96
•216
• 3^5
.5 35
1 ,1 0 .2,035
2 7 ,9 4 5
69,870
^44,^50
900,000 z f
act
$4 o
so
ISO
2,000
3,000
5,000
8,000.
50,000
100,000
500,000
1,000,000.
1944
26,3SS
/0*4,793
*7.0r*
4 2 $ ,2/4
37Q.O00 l i :
23 ,3 68
7 0 ,7 7 4
449,250
900,000 2/.
5 5 ,9
q 9-*9
3 3 .9
30*0 z f
5 2 .S
ri
OOVO
S§ » 9
,
37.O i /
M4 3f.1
56 *7
70*6
3 9 .9
90.0 2/
Por footnotes,• see last, page«
ro
o
o
Table 1 ^-— Continued
Married person — No dependents
Net income
before
exemptions ;
1
$1 , 0 0 0
1 ,2 0 0
i* 5 Co
2,000
3,000
5*000
8,000
10,000
15,000
20,000
8$ ,000
50,000
100,000
500,000
1,000,000
Note;
\
Amounts of tax
*
•act
\
*
Present
lair
Proposed
rate s
’
*
•
lyhk
\
act
*
Pre sent
law
•
130
$60
160
360
2%
ft7 5
—
$72
192
U32
|
l
#■
Proposed
rates
,,„
mm
$15
6l
,5 »l
—
-
ft.gf
12*3
15.8
ft,of,
8.0
12.0
1 9 .5
15.2
1 3 .2
3 ,8 1 2
2 5 .9
3 1 .3
1 7 .7
1 8 .9
21*7
21.1
22
2 5 .ft
2^.U
2 8 .1
8 .7
9 .6
lft.ft
760
1,^16
1,888
3,260
S-,872
912
1*688
2*2*K)
5*62^
36.6
6 ,72 ^
1 9 .5 9 2
7.676
.21,54^
56*728
^23*500
898,500
ftl.2
26.9
3 0 .7
55*2
39*2
69 „ft
88*8
90*0 2/
52.8
8 0 ,7
% a
56.7
2 ft„7
35*9
8 9 .9
975
1,885
2 ,5 8 5
ft,6 9 5
7*315.
10,295
27*535
69,^35
W 5 ,S9 5
900,060 2/
*
*
*
Sffective rates
62*776
*$63,548
858,5^
Assumes all income is;owned by one spouse©
For footnotes, see last page*
23.6
Table 14 — Continued
Married person. — Two dependents
1
Effective rates
............. ---- - - T----------------- -
Net income s.
“before
:
exemptions :
$1,000
1,500
2,000
2 ,*K30
3*000
5,000
8,000
10,000
15,000
20,000
25,000
50,000
100,000
500,000
1,000,000
Amounts of tax
19^V
cXC
v
$15
¡50
«■5
137
2Î5
755
1,535
2,2^5
^,265
'
*.
Pre sent
law
*».
—
-
9 .7 0 5
-*
-
$120
$1*&
520
1,152
Szk
1.376
1,896
3 ,W
5,168
1 .5 9 2
2 ,9 0 0
6 ,7 3 5
26,865
68,565
Ute,9 S5
900,000 2/
*
Proposed
rates
6,26s
1S,8SU
51,912
'4 0 2 ,^ 5 6
857,^56
7,172
20,788
55,816
*122,360
3 9 7 »36 o
*
19UU
*
act
i
2*0
2*3
Present
law
»
—
—
-
K0
33.9
22*3
12*5
17.2
19.0
22*7
25*3
38.8
25*1
2 8 .7
5 3 .7
3 7 *8
‘kuS
51.9
8 0 *5
5 5 .8
8 4 .5
35.7
8 9 -7
1 5 .1
19.S
I0**i>
lhA
22»5
28*4
1 5 .3
1 9 -3
6s*6
88*6
90,0 2/
February
Notes Assumes all income is owned “by one s^pomso •
1/
—
-
5*7
9 *2
Treasury Department
%I
Zf
Proposed
rated
Revenue Act of 1950* rate.a applicable to 19 pi incomes*
faking into accotait ma:iimum effective rate limitation of
faking into accotait maximum effective rate limitation of
9$ percent*
87 percent*
5, I95I
CHARTS ACCOMPANYING THE STATEMENT OF
SECRETARY OF THE TREASURY SNYDER
TO THE HOUSE WAYS AND MEANS COMMITTEE
February 5,1951
OFFICE OF THE SECRETARY OF THE TREASURY
Chart l
Corporation Income Tax Effective Rates'
Law, and Proposed
2
4
€
10
20
40 60 100
200 400 600 WOO 2,000
ofDollars)
Does notincludeexcessprofitstaxliability.
10,000
Chart 2
Percentage Distribution of Corporations,
Their Income, and la x , Calendar 1951
I----------- Taxable Net Income Cla sses------------ 1
Under $25,000 * \
Number of
Corporations
Taxable
Net Income
Present
Total Tax
Liability
Proposed
flWeeflf
atn*
2%70 %
$100,000 and over
$25,000-/00,000 S
Chart 3
Annually
Quarterly
Profits
Profits
offerTaxes
^Annualrates,seasonallyadjusted, tFederalendstalecorporationincomeandprofits taxes,
Scarce?Department ofCommerce.
' ■>
Çfflteô* the Se«itar> «S this fcfttttfy
C -6 8 8 ‘A
Chart 4
Effective Rates of Individual Income Tax
Present and Proposed Rates
Married Person, Two Dependents
______ _____!
^
/7r o p o s a / 's l
1
1
i
1
^
3
jjl
se n t La w *
[ I I I I B B B I 1
l i l i l l l
$
1
Wife<sf Sfcfi!<ar>¿i toMMCy
2
'
5
10
20
>
50
100
Ntf Income (Thousands ofDollars) - ï i j f t
200
$00
U/:\
^V'
Chart 5
Percentage Distribution of lndividual Taxpayers,
Their income, and Tax
Calendar 1951
Incomes Under $5,000 \
Incomes Over $5,000
Taxpayers
(Single Persons and
Married Couples).
i l l MMWMMMMM
1 II I4 2 % I1 1 1 II II
Adjusted
Gross Income
m
Present
Tax
Liability
Proposed
iiiiiiiiiiiii
'Adjustedgross incomes.
B-984-A
¿.u6
ttttxx fit th
e$
«
r
«
tó
r
y(
ffH
w
R
w
s
w
T
f
Chart 6
Individual Taxable Net Income for 1951, Present T a x
and ProposedIncrease
BY SURTAX BRACKETS
Present
Tax\
Taxable Net
Income in Bracket,
Percent of Total
fProposedIncrease
4.000.
Dollar Am ounts
*¡0000
ondoyer.
¡4.0
DOLLARS, BILLIONS
PERCENT
Chart
Effective Rates of Individual Income Tax
W orld War H Peak R a tes and Pro p osed
Single Person, No Dependents
Two Dependents
World WarI I
Proposed
40 100
400 & I
•s*
World War ï ï
°roposi
4
NET INCOME (Thousands of Dollars)
û«e*ath»ScctfUryoftf»hMury
ro
(— -y
CD
ors
w i
m m m a mmPkm®,
Tuesday» February 6» 1951.
^
s~
j
^-r /
■
w
/fe
The Sscretary of the Treasury announced last evening that the tender« for
$1,100,000,(XX), or thereaboute, of 91~day Treasury bilis to bs dated Febru&ry g
/
and to «ature May 10, 1951, whieh «ero offered on February 1, w w
oponed at the
Federal Reserve Banks on Febra&ry 5*x
The detall« of thls istmo are as follóse:
Total applied for - #1,652,077,000 ^
,r
Total aeceptod
- 1,103,139,000 (incluáes #103,091,000 enterad on a noncompetitivo basie and accepted in full
at the a m a g a prlee shown beles)
Average priee
- 99*646/ Equlvalent rate of diecount approat* 1*391$ per amia
Rango of aeoepted competitivo bidet
- 99*665 Equivalent rate of disoount approx* 1*325$ per m a m
Higb
ím $
<* 99*61,7 £
*
«
«
*
«
1*396$ * *
(2éípereent of the aisount bid for at the los priee was aeoepted)
Federal Reserve
Bistrict
Total
Applied For
Total
Aceeptetl
Boston
Mes Tork
Philadelphia
Cleveland
Richisond
Atlanta
Chicago
Si» loáis
Mlnneapolis
Kans&s City
Bailas
San Franeiseo
$
t
Total
11,525,000
1 ,476,191,000
27,1»,000
42,481,000
9,154,000
8,271,000
130,070,000
18,195,000
4,145,000
18,345,000
38,012,000
63.354,000
«1,352,077,000 '
8,045,000 853,034*000 y
9,171,00ü ^
34,267,000 r
8,380,000 ^
8,271,000 í74,710,000
13,553,000^
3,997,000 17,065,000^
30,612,000 36,534,000^
«1,103,139,000
«
treasury
Information
departm ent
Service
WASHINGTON, D .C .
morning newspapers,
Tuesday, February 6 , 1951.
RELEASE
S-2586
The Secretary of the Treasury announced last evening that the
tenders for $1,100,000,000, or thereabouts, of 91-day Treasury bills
to he d a te d February 8 and to mature May 10, 1951, which were offered
on F eb ru a ry 1, were opened at the Federal Reserve Banks on February 5,
The details of this issue are as follows:
Total applied for - $1,852,077,000
Total accepted
- 1,103,139,000 (includes $103,091,000
entered on a .non-competitive
basis and accepted in full
at the average price shown
below)
Average price
- 99.648/ Equivalent rate of discount approx.
1.391$ P©** annum
Range of accepted competitive bids:
High
- 99.665 Equivalent rate
1 .325$
- 99*647 Equivalent rate
1 *396$
Low
of discount approx.
per annum
of discount approx.
per annum
(26 percent of the amount bid for at the low price was accepted)
Federal Reserve
District
Total
Applied for
$
Boston
New York
Philadelphia
11,525,000
1 ,476'l94^000
27 ,131,000
Richmond
Atlanta
[Chicago
Total
Accepted
$
9,171,000
42,481,000
9.154.000
34.267.000
130 ,070,000
18 ,195,000
8 ,271,000
74.710.000
13.553.000
3,997,000
8,880,000
8.271.000
St. Louis
^Minneapolis
Kansas C ity
¡Dallas
San Francisco
4,145-000
18.545.000
38,012,1300
17.065.000
30.612.000
68.354.000
TOTAL
8,045,000
858,034,000
$1,852,077,000
0O0
36,534,000
$
1 , 103 , 139,000
~3 m m 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 b y the United States shall be considered to
be interest.
Under Sections
as amended by Section
ll£
U2
and
117
(a)
(1)
of the Revenue Act of
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,
1*18,
as amended, and this notice,
prescribe
the terms of the Treasury bills and govern the conditions of their issue.
of the circular may be obtained from any Federal Reserve Bank or Branch.
Copied
-
2
-
fwsm
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 those 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 February 15, 1951
> ln
cash or other immediately avail-
— ------pyr-----able funds or in a like face amount of Treasury bills maturing
Cash and exchange tenders will receive equal treatment.
Februar^ l 5 , 1951
Cash adjustments will be
made for differences between the par value of maturing bills accepted in exchange
and the issue price of the new bills.
I
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
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Tuesday. February 6 . 1951----- .*
The Secretary of the Treasury, by this public notice, invites tenders for
$1.100,000,000
>
thereabouts, of
91
in exchange for Treasury bills maturing
-¿ay Treasury bills, for cash and
February 15, 1951
to 1313 lssuod on
a discount basis under competitive and non-competitive bidding as hereinafter
provided.
will mature
The bills of this series will be dated
May 17, 1951
> when the face amount will be payable without
■■ ■ y.interest.
February 15j_12a-----» 311,1
.
They will be issued in bearer form only, and in denominations of
§1,000, $5,000, $10,000, $100,000, $500,000, and $1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the
closing hour, two
o*clock p.m., Eastern Standard time,Friday, February 9,„lga-
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 frem others must be accompanied
by payment of 2 percent of the face amount of Troasury bills applied for,
TREASURY DEPARTMENT
Information Service
Wa s h i n g t o n , d .c .
¿1
release m o r n i n g n e w s p a p e r s ,
.
-Tuesday, February 6 , I95 Ì.
S-2587
The Secretary of the Treasury, by this public notice, invites, ten
ders for¿lJLQO''/CO,000, or thereabouts, of 91-hay Treasury bills, for
cash and in exchange for Treasury bills, maturing February 1 5 , 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 February 15, 1951; and will mature May 17, 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,
Friday, February 9 , 1951. 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*995. 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 with
out 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 onened 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 acce’pt 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
2
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 February 15, 1951, in
cash or other immediately available funds or in a like face
amount of Treasury bills maturing February 15, 1951- 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 otheï* 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 treat
ment, as such, under the Internal Revenue Code, or laws
amendatory or supplementary thereto. The.bills shall be subject
to estate, inheritance, gift or other excise taxes, whether
Federal or State, but shall be exempt from all taxation now or
hereafter imposed on the principal or interest thereof by any
State, or any- of the possessions of the United States, or by any
local taxing authority.. For purposes of taxation the amount of
discount at which Treasury bills are originally sold by the
United States shall be. considered to be interest. Under Sections
42 and 117 (a) (.1) of the Internal Revenue' Code, as amended by
Section 115 of the Revenue Act of 1941, the amount of discount at
which bills issued hereunder are sold shall not be considered to
accrue until such bills shall be sold, redeemed or otherwise
disposed of, and such bills are excluded from-consideration as
capital assets. Accordingly, the owner of Treasury bills (other
than life insurance companies) issued hereunder need include in
his income tax return only the difference between the price paid
for such bills, whether on original issue or' on subsequent
purchase, and the amount actually received either upon sale or
redemption at maturity during the taxable year for which the
return is made, as ordinary, gain or loss.
Treasury Department Circular No. 4l8, as amended, and this
notice, prescribe the terms of the Treasury bills and govern
the conditions of their issue. Copies of the circular may be
obtained from any Federal Reserve Bank or Branch.
oOo
- 3 Incomplete reports from Allegheny County, Pennsylvania,
indicate that this highly-industrialized area has added
over 100,000 new payroll savers during the current drive.
Secretary Snyder said:
"As the payrolls of the
Nation are enlarged by increasing defense expenditures,
we will continue to concentrate our voluntary sales
organization on the Payroll Savings phase of the Savings
Bonds Program, which is ceytalxgy]a vital part of the
defense effort.
Supported as it is by business, civic
and labor leaders, as well as by millions of individual
v {//<5 crftoifX
citizens, thft' si m u l a t ed ’Defense Bond’ activity will
give our country added unity, stability and force to
meet any emergency that may lie ahead."
oOo
2
The plants of Crucible Steel Company have reinstated
the Payroll Savings Plan, and over 65 percent of their
14.000 employees have already signed up for regular bond
purchases.
The W e i r t o n Steel Company has also added over
3.000 workers to its already-active Payroll Savings Plan.
Empha s i z i n g that reports received from committees
cover only a small part of progress made to date in
extending Payroll Savings,
Secretary Snyder said that numerous
instances ha d b e e n called to his attention where company
employees have attained 85 to 100 percent participation.
Q
As examples, he cited the Agar Packing and Provision Company, / 1
s>
Chicago;
Rockmart,
-
*
«nil
(P)
Georgia; Wind s o r Manufacturing Company, Windsor,
# 0
Vermont;
”
Goodyear Rubber Company plants at Cedartown and
‘
the Naval Shipyard, Norfolk, Virginia,
and the
&
Ar m y General Depot, Memphis, Tennessee.
The Goodrich Rubber Company of Akron,
Ohio, has so
far attained over 83 percent employee participation in
its widespread plants, and the B o e i n g Airplane Company of
Seattle has added 7,772 new savers to its payroll program.
The Crown Zellerbach Company, paper manufacturers of Camas,
Washington,
is reported to have increased participation in
payroll savings to 79 percent of e m p l o y e e s .
/*
^4vf
PROPOSED PRESS REIEASE
REPORT OH PAYROLL SAVINGS
*/CCt
cjlUt*¿Kfr,p
t m *tfQuf4Y
.^ » * * 7
r s
Three thousand six hundred additional companies,
ing over 750,000 persons,
employ
installed the Payroll Savings Plan
during the first few weeks of the current campaign to extend
this phase of the Treasury's Savings Bonds Program.
maki n g public this preliminary progress report,
In
Secretary
Snyder announced that the campaign will be extended at
once to reach 2,000,000 small businesses employing
15,000,000 p e r s o n s .
Since Savings Bonds are of such vital importance to
the Nation's effort,
Secretary Snyder said that they will
in the future be sold as "Defense Bonds,"
though the
physical appearance of the securities will remain unchanged.
Reports reaching the Treasury from volunteer committees
in a little more than half of the 2,457 counties comprising
the Nation's Payroll Savings market,
indicate large gains
both in the installation of the Plan and in participation
of workers.
The most striking gains,
Secretary Snyder
said, have be e n made in the steel industry, w hich has to
date added over 130,000 n e w participants in the Payroll
Savings Plan.
This increase was the result of person-to-
O
person canvasses b y Carnegie-Illinois Steel Corporation,
C
©
National Tube Company, Alleghany Ludlum Steel Corporation,
Bethl e h e m Steel Corporation, Y o u n g s t o w n Sheet and Tube
©
Corporation,
0
Great Lakes Steel Corporation, and the Jones
and Laughlin Steel Corporation
0
K
TREA SU RY DEPARTM ENT
Information Service
IMMEDIATE RELEASE,
Wednesday, February 7 , 1951.
WASHINGTON, D .C .
S-2588
j.hree thousand six hundred additional companies, employing
over 750,000 persons, installed the Payroll Savings Plan during
the first few weeks of the current campaign to extend this
phase of the Treasury's Savings Bonds Program. In making public
this preliminary progress report, Secretary Snyder announced
that the campaign will be extended at once to reach 2 ,000,00€
small businesses employing 1 5 ,000,000 persons.
Since Savings Bonds are of such vital importance to the
Nation's effort, Secretary Snyder said that they will in the
future be sold as "Defense Bonds," though the physical appearance
of the securities will remain unchanged.
Reports reaching the Treasury.from volunteer committees
little more than half of the 2 , 4 5 7 counties comprising the
Nation's Payroll Savings market, indicate large gains both in
the installation of the Plan and in participation of workers.
The most striking gains, Secretary Snyder said, have been made
in the steel industry, which has to date added over 130,000 new
participants in the Payroll Savings Plan. This increase was
the result of person-to-person canvasses by Allegheny Ludlum
Steel Corporation, Bethlehem Steel Corporation, Carnegielllinois Steel Corporation, Great Lakes'Steel Corporation,
Jones and Laughlin Steel Corporation, National Tube Company, and
the Youngstown Sheet and Tube Corporation.
in a
xhe plants of Crucible Steel Company have reinstated the
Payroll Savings Plan, and over 65 percent of their 14,000
employees have already signed up for regular bond purchases.
The Weirton Steel Company has also added over 3,000 workers to
its already-active Payroll Savings Plan.
Emphasizing that reports received from committees cover
only a small part of progress made to date In extending Payroll
Savings, Secretary Snyder said that numerous instances had been
called to his attention where company employees have attained
05 to 100 percent participation. As examples, he cited the
Agar Packing and Provision Company, Chicago; Army General
Depot-, Memphis, Tennessee; Goodyear Rubber Company plants at
Cedartown and Rockmart, Georgia- the Naval Shipyard, Norfolk,
Virginia; and the Windsor Manufacturing Company, Windsor
Vermont.
2
The Goodrich Rubber Company of Akron, Ohio, has so far
attained over 83 percent employee participation in its
widespread plants, and the Boeing Airplane Company of Seattle
has added 7,772 new savers to its payroll program* The Crown
Zellerbach Company, paper manufacturers of Camas, Washington,
is reported to have increased participation in payroll savings
to 79 percent of employees.
Incomplete reports from Allegheny County, Pennsylvania,
indicate that this highly-industrialized area has added over
100,000 new payroll savers during the current drive.
Secretary Snyder said: "As the payrolls of the Nation
are enlarged by increasing defense expenditures, we will
continue to concentrate our voluntary sales organization on
the Payroll Savings phase of the Savings Bonds Program, which is
a vital part of the defense effort. Supported as it is by
business, civic and labor leaders, as well as by millions of^
individual citizens, this vigorous ’Defense Bond' activity will
give our country added unity, stability and force to meet any
emergency that may lie ahead."
oOo
2
The tentative determinations and rates proclaimed by
the Secretary of the Treasury applying to depressed
industries and new industries have been incorporated in
full in the instructions accompanying the schedule.
These
tentative determinations and tentative rates,Commissioner
Schoeneman said/i^ase
Cre computed only by the use of specific formulas
expressly prescribed by the Excess Profits Tax Act of 1950,
are required to be proclaimed
and
w re PisTOV ‘l^ w e u ld "be
on or before March 1, 1951
Regulations under the excess profits tax are now being
prepared by the Bureau of Internal Revenue, and will be
promulgated as soon as possible.
oOo
PROPOSED PRESS RELEASE
J
sif
~ T oa,
y
o
L
7
tW
- & ;/ f J T V
The Bureau of Internal Revenue today released schedules
and instructions required by corporations filing returns
under the Excess Profits Tax Act of 1950.
In releasing this material, Commissioner George J.
Schoeneman said that within the next few days collectors
of internal revenue will have received sufficient copies
to make a general distribution to taxpayers concerned,
provided shipping conditions permit.
Commissioner Schoeneman stated that the release of
the schedules and instructions to the public today will
enable most corporations subject to the filing of the
excess profits schedule to file their returns on or before
the March 15 deadline.
He said, however, that he
recognized that some corporations may still find it impossible
to file their returns on or before that date this year.
Collectors have been instructed to give sympathetic
consideration toArequests from corporations for^extensions
of time for the filing of these returns.
Corporations
which are granted extensions of time will nevertheless
be required to file tentative returns showing the estimated
tax^pay the appropriate installment on or beTore the
statutory filing date.
TREA SU RY DEPARTM ENT
Information Service
WASHINGTON, D .C .
IMMEDIATE RELEASE,
Tuesday, February 6 , 1951«
S-2589
The Bureau of Internal Revenue today released schedules
and instructions required by corporations filing returns
under the Excess Profits Tax Act of 1950 ,
In releasing this material, Commissioner George J.
Schoeneman said that within the next few days collectors
of internal revenue will have received sufficient copies
to make a general distribution to taxpayers concerned,
provided shipping conditions permit.
Commissioner Schoeneman stated that the release of
the schedules and instructions to the public today will
enable most corporations subject to the filing of the excess
profits schedule to file their returns 6n or before the
March 15 deadline. He paid, however, that he recognized
that some corporations may still find it impossible to file
their returns on or before that date this year. Collectors
have been instructed to give sympathetic consideration to
meritorious requests from corporations for limited extensions
of time for the filing of these returns. Corporations which
are granted extensions of time will nevertheless be required
to file tentative returns showing the estimated tax, and
pay the appropriate installment on or before the statutory
filing date.
The tentative determinations and rates proclaimed by
the Secretary of the Treasury applying to depressed
industries and new industries have been incorporated in
full in the Instructions accompanying the schedule. These
tentative determinations and tentative rates, Commissioner
Schoeneman said,are computed only by the use of specific
formulas expressly prescribed by the Excess Profits Tax
Act of 1950, and are required to be proclaimed on or
before March 1, 1951.
Regulations under the excess profits tax are now being
prepared by the Bureau of Internal Revenue, and will be
promulgated as soon as possible.
0O0
TREASURY DEPARTMENT
STATUTORY DEBT LIMITATION
AS OP January 31» 1951
f\
scat
Service
Washington) m . js. iq1
Section 21 of Second Liberty Bond Act, as amended, provides that the ^ace 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 $87U,CC0 ,C0 0 ,C0G (Act of June 2 6 , 1 9 4 6 J U«S.C», title 3 1 , see, r/5 'Jb)» outstanding at
any one time. For purposes of this section the current redemption value of any obligation issued on a discount
basis which is redeemable prior to maturity at the cation of the holder shall be considered as its face amount.'!
The following table shows the face amount of obligations outstanding and the face amount which can still
be issued under this limitation:
$275 ,000 ,000,000
Total face amount that may be outstanding at ary one time
Outstanding
Obligations issued under Second Liberty Bend Act, as amended
Interest-bearing;
Treasury bills .......... ........ .
Certificates of indebtedness -----Treasury notes — *---------------Bonds Treasury
...............
Savings (current redemp. value).....
Depoe itary----- --- -----------Armed Forces leave____________ .....
Investment series____ __________ _
Special Funds Certificates of indebtedness..
Treasury notes__ ___________
Total interest—bearing___
Matured, interest— ceased __________
¿on ngn a a a
$ 1J * © 2 °, 7 5 /, O U U
a
52,547.960.800.4;66,176,717.800
94>034,722,300
58,016,744,422
291,173.500
83,844,950
952,980.000 153.379.465,172
19,424,965,0G0
1*»,566,789,000 33.991,754,000
____ _____ 253,547,936,972
__________
556,760,893
Bearing no interest;
War savings stamps ___________ _—
Excess profits tax refund bonds
47 ,806,055
2 ,769,276
Special notes of the United States:.
Internat'1 Monetary Fund series.,.,.
1 ,270,000,000
1 .320,575.331
255.425,273,196
Guaranteed obligations (not held by Treasury):
Interest-bearing:
Debentures: F.H.A.
_______ _____—
Demand obligations % C.C.C*_______ _
___
14,866,686
790,941
Matured, interest-ceased----- ~— — ------Grand total outstanding__ ___________ _________ ___ — ---- -—
Balance face amount of obligations issuable under above authority.
15 ,657.627
2.116.475
17.774,102
2 4 4 . 445 . 047 , 298^
19,556,952.702 ■J
January 31, 1951»
February 1, 195l)•
Outstanding —
256,124,868,783
Total gross public debt -- ,
--- ----„—
-------- — ... ..— - ---17,774,102.
Guaranteed obligations not owned by the Treasury-------------------'256,142,642,885
Total gross public debt and guaranteed obligations---- -------- ----699.595.587
Deduct — other outstanding public debt obligations not subject to debt limitation
255.443,047,298
Becorcilement with Statement of the public Debt —
(Daily Statement of the United States Treasury,
y
a
€T
noA
&L£.It
STATUTORY DËBT LIMITATION
A$ OF January 31, 1951
February 7, 1951
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 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, 19i*6j 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 a discount basis which is redeemable
prior to maturity at the option of the holder shall be considered as its face
amount*»
The following table shows the face amount of obligations outstanding and the
face amount which can still be issued under this limitation:
Total face amount that may be outstanding at any one time
$275,000,000,000
Outstanding
Obligations issued under Second Liberty Bond Act, as amended
Interest-bearing:
Treasury bills....... ....... $13,628,757,000
Certificates of indebtedness.**
Treasury notes............... 52,6*7,960,600 $66,176,717,800
Bonds Treasury **.............. .. 9l*,03h, 722,300
Savings (current redemp. value)58,016,7iil*,1*22
Depositary,............ .
291,173,500
Armed Forces Leave*,.......,,
83,81|1*, 950
Investment series......... .
952,980,000 153,379,i*65,172
Special Funds Certificates of indebtedness. 19,\\2b9965,000
Treasury notes,.,«,.........
1^,566,789,000 33,991,75^,000
Total interest-bearing.... . „• *...... .
?53,51*7,936,972
Matured, interest-ceased....556,760,893
\ Bearing no interest*
War savings stamps.............
. )47,806,055
Excess profits tax refund bonds..
2,769,276
Special notes of the United States:
Internat!l Monetary Fund series,
1,270,000,000 1,320,575.331
^tai...... .......................
Guaranteed obligations (not held by Treasury):
Interest bearing:
Debentures: F.H.A........ .....
li*,866,686
Demand obligations: C.C.C......
790,9lil
Matured, interest-ceased.................. ......
15,657,627
2,116 li75
Grand total outstanding............. „.... ......
17,77*, 102
a ance face amount of obligations issuable under above authority.
. *
¿?^7oS
Reconcilement with Statement of the Public Debt — January 31, 1951*
^
(Daily Statement of the United States Treasury, February 1, 1951).
Outstanding ’
Total gross public debt.•••••••••..................... .
286 12ii 868 783
Guaranteed obligations not owned by the Treasury............... ,
* 17^77lul02
+ gr?fs public debt and guaranteed obligations........... ... 'F ,"li| , l
ueauct - other outstanding public debt obligations not subject to
2
debt limiatation.......................... ..... ...................
S-2590
6
2
6
4 2 , 8 8 8
699,595.587
255,LL3,01*7,298
2
Dr. James I. Hoffman of the National Bureau of
Standards, one of the members of the Commission, will take
to Philadelphia the official weights of the Philadelphia
Mint, which have been calibrated at the Bureau of Standards
during the past week.
These weights will be used in the
annual tests.
Besides Dr. Hoffman, those serving on the Assay
Commission this year are:
Mr. Victor Frenkil, Baltimore, Maryland; Mr. Benjamin
Lazrus, New York: Mr. Frank Altschul, Stamford, Connecticut;
Mrs. B. Braxton Jones, Alexandria, Virgin!^; Mr.. Nathan
Cummings, Chicago, Illinois; Honorable A. Harry Moore,
Jersey City, New Jersey; Honorable James E. Wagner, Jr.,
Bluefield, West Virginia; Mrs. Clarence Fraim, Wilmington,
Delaware; Mrs. Henry L. Jacobs, Providence, Rhode Island;
Mrs. Julian Friant, Herndon, Virginia; Mrs. Richardson
Dillworth, Philadelphia, Pennsylvania; Mrs. Carroll Miller,
S l * r'N
^
Washington, D. C.. and Mr. 'Clement Kennedy, Swampscott,
0
Massachusetts
Ex Offiero members of the CommissionAare Honorable
.4
**
Preston Delano, Comptroller of the Currency, Washington, D.C.;
Judge William H. Kirkpatrick,»Easton, Pennsylvania; and
>rk.
Mr. Joseph S. Buford, New York,
0 O0
&
V
3
w
^- ,
¿Ç)
c
u
;
A
IMMEDIATE RELEASE
Thursday, February 8 , 1951•
S 2 -
5
?
/
Mrs. Nellie Tayloe Ross, Director of the Mint, announced
today that she will convene the Annual Assay Commission
at the United States Mint in Philadelphia on Wednesday
morning, February 14, 1951* for the traditional ..ygamsty
"trial of the coins.”
names of the
The White House today announced the
men and women appointed by President
Truman to take part in the tests.
The Assay Commission, M r s . Ross poin
assembled regularly since that time.
Its function is to
make tests of coins, taken at random from the three
operating mints during the preceding year, to determine
whether they conform in weight and fineness to legal
requirements.
During each year, one silver coin from every delivery
V D. C O O
of 9- W
made at all mints is taken out for test by the
Commission.
These coins are carefully preserved in a "pyx”
at the Philadelphia Mint, under the joint care of the
Superintendent and Assayer, and are delivered to the
Commission for the annual tests.
The word "pyx," referred
to in the law authorizing the "trial of the coins,” derives
from the "phx-chest," a receptacle for coins selected for
testing in the early days of the British Mint.
'ŸJt
TREASU RY DEPARTM ENT
Information Service
WASHINGTON, D .C .
227
IMMEDIATE RELEASE,
Thursday, February 8 , 1951.
S -2591
Mrs. Nellie^Tayloe Ross, Director of the Mint, announced
today that she will convene the Annual Assay Commission at the
United States Mint in Philadelphia on Wednesday morning,
February 14, 1951, for the traditional "trial of the coins."
The White House today announced the names of the fourteen men
and women appointed by President Truman to take part in the
tests.
Ïhe Assay Commission, Mrs. Ross pointed out, is one of the
oldest and most dignified institutions of the Government, having
been provided for in the same statute that established the Mint
on April 2, 1792, and assembled regularly since that time. Its
function is to make tests of coins, taken at random from the
three operating mints during the preceding year, to determine
whether they conform in weight and fineness to legal requirements,
During each year, one silver coin from every delivery of
10,000 made at all mints is taken out for test by the Commission.
These coins are carefully preserved in a "pyx" at the
Philadelphia Mint, under the joint care of the Superintendent
and Assayer, and are delivered to the Commission for the annual
tests. The word "pyx," referred to in the law authorizing the
trial of the coins," derives from the "pyx-chest," a receptacle
for coins selected for testing in the early days of the British
Mint.
Dr. James I. Hoffman of the National Bureau of Standards,
one of the members of the Commission, will take to Philadelphia
the official weights of the Philadelphia Mint, which have been
calibrated at the Bureau of Standards during the past week.
These weights will be used in the annual tests .
228
2
Besides Dr. Hoffman, those serving on the Assay Commission
this year are:
Mr. Victor Frenkil, Baltimore, Maryland; Mr. Benjamin
Lazrus, New York: Mr. Frank Altschul, Stamford, Connecticut;
Mrs. B. Braxton Jones, Alexandria, Virginia and Kinston,
North Carolina: Mr. Nathan Cummings, Chicago, Illinois;
Honorable A. Harry Moore, Jersey City, New Jersey;
Honorable James E. Wagner, Jr., Bluefield, West Virginia;
Mrs. Clarence Fraim, Wilmington, Delaware; Mrs. Henry L. Jacobs,
Providence, Rhode Island; Mrs. Julian Friant, Herndon,
Virginia; Mrs. Richardson Dillworth, Philadelphia, Pennsylvania;
Mrs. Carroll Miller, Washington, D. C. and Slippery Rock,
Pennsylvania: and Mr. Clement Kennedy, Swampscott, Massachusetts.
Other members of the Commission named in conformity with
statutory provisions, are Honorable Preston Delano, Comptroller
of the Currency, Washington, D. C.; Honorable William H.
Kirkpatrick, Judge of the District Court, Eastern District of
Pennsylvania, Easton, Pennsylvania; and Mr. Joseph S. Buford,
Chief Assayer of the U. S. Assay Office, New York, New York.
0O0
RELEASE, MORNING MWS^APERS,
Saturday! February IQ, 1951«
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 February 15 and to
filature May 17, 1951, which were offered on February 6, were opened at the Federal Re
serve Banks on February 9*
The details of this issue are as followsj
Total applied for - $1,901*#536,000
Total accepted
- 1,101,561,jOQ
Average price
(includes 199,399,000 entered on a
non-caapetitive basis and accepted in
full at the average price shown below)
- 9 9 *61*8 Equivalent rate of discount approx. 1 *3 9 1 $ per annum
Range of accepted competitive bids?
(Excepting one tender of $310,000)
- 99*651 Equivalent rate of discount approx. 1.381$ per annum
- 99*61*7
8
a
«
»
h
1*396$ «
«
High
Low
(19 percent of the amount bid for at the low price was accepted)
Federal deserve
District
Total
Applied for
Total
Accepted
Boston
Mew York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneaooils
$
6,855,000
1,473,113,000
23,1*19,000
49,433,000
7,730,000
7,908,000
169,51*8,000
26,050,000
!*,2i*l*,000
1
32,362,000
30,090,000
65 ,281*,000
Kansas City
Dallas
San Francisco
TOTAL
$1,you,536,000
6,403,000
821,053,000
7,609,000
1*0,1*1*2,300
7,730,000
7,908,000
109,968,000
13,158,000
1*,21*1*,000
28,812,300
25,940,000
28,271*, 300
|i,ioi,5Ui,ooo
O9
RELEASE MORNING NEWSPAPERS,
S a t u r d a y , February 10, 1931
0
s -2592
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 February 15 and to mature May 17, 1951, which were
offered on February 6 , were opened at the Federal Reserve Banks on
F e b ru a ry
9•
The details of this issue are as follows:
Total applied for - $1,904,536,000
Total accepted
- 1,101,541,000 (includes $99,399,000
entered on a non
competitive basis and
accepted in full at the
average price shown below)
Average price
- 99»648 Equivalent rate of discount approx.
Range of accepted competitive bids
1.391$ P©*1 annum
(Excepting one tender of
$310,000)
99*651 Equivalent rate of discount approx.
1 .381$ per annum
Low
99*647 Equivalent rate of discount approx.
1 *396$ per annum
(19 percent of the amount bid for at the low price was accepted)
High
Federal Reserve
D istric t
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas C ity
Dallas
San Francisco
Total
Applied for
$
TOTAL
6 ,855,000
Total
____Accepted
$
6,403,000
1,477,113,000
23.419.000
.49,4.33,000
7.730.000
7.908.000
169,548,000
26 .050.000
4.244.000
32 ,862,000
38,090,000
65,284,000
821,053,000
7,609,000
$1,904,536,000
$1,101,541,000
0O0
40.442.000
7.730.000
7.908.000
109,968,000
13.158.000
4,244,000
2 8 ,812,000
25.940.000
28.274.000
that Customs
Frank Do*, Commissioner of Customs, today
of cut diamonds, bringing the total wholesale value of gems involved in
three smu~glln& attempts broken up in late January to more than $800,000,
The latest cache, about 1500 carats, was found in hollowed-out,
wooden qfcfrpp supports of luggage belonging to Eta Hoffman, an immigrant from
Belgium, whose platform-type shoes yielded $243,000 worth of contraband
gems upon her arrival at New York’s International Airport on January 22,
The woman’s baggage was detained,and subsequent search revealed the
gems in the iimliWtn stays^ttafc
additional
Announcement of the find was withheld for a time, Commissioner Dow
'"'*.""'N
said, in h o p e d l a s s o c i a t e s wiglet identify themselves by an attempt
K
/v
to obtain release of the luggage from Customs custody. The discovery
of the secret compartment wadmade by Customs Agents Abraham Eisenberg and
Kenneth 0.Linden, .
•
o dtisat* seizures,made during
Leiser Weitman, who arrived by plane from Antwerp
January 21»^
under charges at
New York in connection with attempt to smuggle in stones worth $275,000
with attempting to bring in $120,000 worth of gems when he arrived at
Mfcfca
*om Amsterdam t^HRWKBB&»
«3*"
treasury
departm ent
WASHINGTON, D .C .
Information Service
IMMEDIATE RELEASE
Monday. February 12, 1951
S-2593
Prank Dow, Commissioner of Customs, today announced that
Customs Agents in New York had seized an additional $200,000
worth of cut diamonds, bringing the total wholesale value of
gems involved in three smuggling attempts broken up in late
January to more than $800,000.
The latest cache, about 1500 carats, was found in hollowedout, wooden supports of luggage belonging to Eta Hoffman, an
immigrant from Belgium, whose platform-type shoes yielded $2^3*000
worth of contraband gems upon her arrival at New York’s
International Airport on January 22.
The woman’s baggage was detained, and subsequent search
revealed the additional gems in the stays.
Announcement of the find was withheld for a time, Commissioner
Dow said, in the hope associates would identify themselves by an
attempt to obtain release of the luggage from Customs custody.
The discovery of the secret compartment was made by Customs
Agents Abraham Eisenberg and Kenneth G. Linden.
Two other seizures were made during the week of January 21.
Leiser Weitman, who arrived by plane from Antwerp, was placed
under charges at New York in connection with attempt to smuggle
in stones worth $275*000 wholesale, and Eli Stern, of Brooklyn,
was charged in the Florida district with attempting to bring in
$120,000 worth of gems when he arrived at Miami by plane from
Amsterdam.
oOo
TREA SU R Y DEPARTM ENT
Information S ervice - O ffice Memorandum
To:
Mr. John S. Graham
From:
James C . Hivers
February *J> 1951
Subject:
Talked with Leon Markham about the attached
release, which I have taken the liberty to revise.
He tells me that on October 5, 1950, Secretary
Snyder sent letters to forty-five industrial
leaders all over the country, inviting them to
come to Washington to discuss the stepped-up
Payroll Savings endeavor. At that time, the
State Savings Bond Chairman of Connecticut was
not in position* to name an industrialist in his
area who might be invited to the meeting. As you
probably remember, the letters of the Secretary
brought a large number of industrial leaders to
Washington, who were addressed by the Secretary,
and from whom members of the National Advisory
Committee were named, and chairmen of State
Industrial Bond Committees selected.
Since the October meeting, Mr. Welch, State
Savings Bon d Chairman of Connecticut, has c on
ferred with Mr. Redway, described as "an enthusiastic
Payroll SavUhgs man."
Mr. R e d w a y voluntarily offered
his services as chairman of the Industrial Defense
Committee for Connecticut, and Mr. Markham feels
that we should have a release on his appointment.
H e says there will be few, if any, similar instances
in the future.
A n y further releases of this nature
that come over from Savings Bonds will be accompanied
b y a m e m o r a n d u m setting forth the background,
Mr. M arkham said.
Enclosure
s
RELEASE P«M.1
Thursday, February 15, 1951
assistjaag the Treasury Department in the expansion of the Payroll Savings
-»rosraiik ,****«*^^
%>-hht
'*aSi
In accepting tim appointment^Mr. Bedway told Secretary Snyder that the
American Paper Goods Company has 49 per cent of its employees participating/
in the Payroll Savings Plan. In addition, the Acme Wire Company of which j
Mr. Redway is a director, has 34 per cent enrolled for Payroll Savings andr
the Pirst Rational Bank and Trust Company of Hew Haven, 22 per cent enrolled.
Mr. Redway added: **Due to the international situation, the vastyneeds
of our Government can best he carried out when every citizen shares in an
activity directly related to the nation*s program. Because of the/vitality
of the Defense Bond Program, I am pleased to accept the appointment hy
Secretary Snyder as Chairman of the Connecticut Industrial Defense Bond
Committee.**
tJ£L hl&
\
flirg£toratea, isfvice president of the
fanufacturers Association of Connecticut.
J
j
Secretary Snyder today announced the appointment of
Albert S. Redway, president and director of the American
Paper Goods Compamy of Kensington, Connecticut, and vicepresident of the Manufacturers Association of Connecticut,
as chairman of the Industrial Defense Bond Committee for
Connecticut.
In accepting the chairmanship of the committee, which
will assist the Treasury Department in the expansion of
the Payroll Savings phase’of the Defense Bonds Program,
Mr. Redway told Secretary Snyder that the American Paper
Goods Company has installed the plan, and that almost half
of its employees are already participating.
The Acme Wire
Company, of which Mr. Redway is a director, and other firms
in which he is interested, also have active Payroll Savings
plans.
"Due to the international situation," Mr. Redway ^aid,
"the vast needs of our Government can best be carried out
when every citizen shares in an activity directly related
to the Nation's overall defense effort.
Because of the
vitality of the Defense Bond Program, I am highly pleased
to accept the appointment by Secretary Snyder as Chairman
of the Connecticut Industrial Defense Bond Committee."
23S
M E D I A T E RELEASE,
Thursday, February 15* 1953..
S-259^
Secretary Snyder today announced the appoint
ment of Albert S. Redway, president and director
of the American Paper Goods Company of Kensington,
Connecticut, and vice-president of the Manufacturers
Association of Connecticut, as chairman of the
Industrial Defense Bond Committee for Connecticut.
In accepting tho chairmanship of the committee,
which will assist the Treasury Department In the
expansion of the Payroll Savings phase of the
Defense Bonds Program, Mr. Redway told Secretary
Snyder that the American Paper Goods Company has
installed the plan, and that almost half of its
employees are already participating. The Acme
Wire Company, of which Mr, Redway is a director,
and other firms in which he is interested, also
have active Payroll Savings plans.
"Due to the international situation," Mr. Redway
said, "the vast needs of our Government can best be
carried out when every citizen shares in an activity
directly related to the Nation's overall defense
effort. Because of the vitality of the Defense Bond
Program, I am highly pleased to accept the appoint
ment by Secretary Snyder as Chairman of the
Connecticut Industrial Defense Bond Committee."
0O0
Y£
W O AND
BfflBB-QUAMSaS M
------- —
W
tSSASUMf
BOMBS OF Wfegfe
S
R
E
Ufflttt
J is ; 19351
HQTXCS OP CALL FOR BIPaifiFTlOM
To Holders of 2 - 3 A P«remit Treasury Bond» of 1#SX*S1| (dated June 35,
1936), and Other» Concerned*
1.
Public notice ie hereby given that all outstanding 2 -3 A par-
cent Treasury Bonds of 1 9 5 l~ 5 k , dated June 3 5 , 1936, due June 3 5 , 19#*,
are hereby called for redemption on June 3 5 , 1951, on which date
interest on such bonds will cease#
2*
Holders of these bonds nay, in advance of the redemption
date, be offered the privilege of exchanging all or any part of their
called bonds for other interest-bearing obligations of the United
States, in which event public notice will hereafter be given and an
official circular governing the exchange offering will be issued*
3.
Pull information regarding the presentation and surrender
of the bonds for cash redemption under this call will be found in
Department Circular Ho. 6 66 , dated July 2 1 , 191*1«
John W. Snyder,
Secretary of the Treasury<
TREASURY DEFARTKSHT,
Washington, February
H i, 1951-
P C«3
W
a
s T lf
RELEASE,MORNING NEWSPAPERS,
Wednesday, Pebrnary lit. 1951.
The Secretary of the Treasury announced today that all outstand
ing 2-3A
percent Treasury Bonds of 195l**5&# dated June 15k X936, due
June 15, 195U, are called for redemption on June 15, 1951.
now outstanding $1,626,686,150 of these bonds.
The text of the formal notice of call is as followsi
There are
treasu ry
departm ent
WASHINGTON, D .C .
Information Service
release m o r n i n g n e w s p a p e r s ,
Wednesday, February 14, 1951.
S -2595
The Secretary of the Treasury announced today that all
outstanding 2-3/4 percent Treasury Bonds of 1951-5^, dated
June 15, 1936, due June 15, 19$^, are called for redemption on
June 15, 1951. There are now outstanding $ 1 ,626 ¿686 ,150 of
these bonds.
The text of the formal notice of call is as follows;
TWO AND THREE-QUARTERS PERCENT TREASURY BONDS OF 1951-54
(DATED JUNE 15, 1936)
NOTICE OF CALL FOB REDEMPTION
To Holders of 2-3/4 percent Treasury Bonds of 1951-54
(dated June 15, 1936), and Others Concerned:
1.
Public notice is hereby given that all outstanding
2-3/4 percent Treasury Bonds of 1951-5^, dated
June 15, 1936, due June 15, 195^, are hereby
called for redemption on June 15, 1951, on
which date interest on such bonds will cease.
2.
Holders of these bonds may, in advance of the
redemption date, be offered the privilege of
exchanging all or any part of their called
bonds for other interest-bearing obligations
of the United States, in which event public
notice will hereafter be given and an official
circular governing the exchange offering will
be issued.
3.
Pull information regarding the presentation and
surrender of the bonds for cash redemption
under this call will be found in Department
Circular Ho. 666 , dated July 21, 1941.
John W. Snyder,
Secretary of the Treasury.
TREASURY DEPARTMENT,
Washington, February 14, 1951.
0O0
February 6, 1951
TO MR. BARTKLTt
The following transactions were made in direct and guaranteed
securities of the Govemnent for Treasury investment and other
accounts during the month of January, 1951*
Purchases # # * # # • * # # * * * *
#37 $093#^^0
Sales * • • # * * * # * # ♦ * » » *
i^Iff^ftiOO
Net purchases • • « • # * « • • • •
#36,700,600
(SgcU) jE. 0» Barnes
Chief, Division of Investments
Wisecarver 2/6/51
TR EA SU R Y DEPARTM ENT
Information Service
Wa s h i n g t o n , d .
RELEASE MORNING NEWSPAPER!
-Mondayj
January
^&nàsSÊâni
^
ifTI
During the month of
195^
market transactions in direct
and guaranteed securities of the
Government ftor Treasury investment
and other accounts resulted in net
7 S O j £00
purchases of
Secretary
Snyder announced today.
0O0
r- ^
— O L.
inrCC
TREASU RY DEPARTM ENT
In fo rm a tio n
Service
W a s h in g t o n , d . c .
242
RELEASE MORNING NEWSPAPERS,
Thursday, February 15, 1951 *
S-2596
During the month of January 1951,
market transactions in direct and
guaranteed securities of the Government
for Treasury investment and other
accounts resulted in net purchases of
$ 36 ,780 ,600, Secretary Snyder announced
today.
0O0
- 3 -
kffllk
any Stats, 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 b y the United States shall be considered to
be interest.
Under Sections 1*2 and 117 (a) (1) of the Internal Revenue Code,
as amended by Section 11? of the Revenue Act of 19UX, 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 incane 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 Ho. 1*18, as amended, and this notice, prescribe
the terms of the Treasury bills and govern the conditions of their issue.
of the circular may be obtained from any Federal Reserve Bank or Branch.
Copies
-2 iSSSK
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 shal||
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
Februarv23. 1951 _» an oas'1 or
immediately avail
able funds or in a like face amount of Treasury bills maturing February 2^,
Cash and exchange tenders will receive equal treatment.
Cash adjustments will te
made for differences between the par value of maturing bills accepted in exchangd
and the issue' price of the new bills.
The income derived
from
Treasury bills, whether interest or g a m 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 f
all taxation now or hereafter Imposed on the principal or interest thereof
;
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Thursday, February 15, 1951
The Secretary of the Treasury, by this public notice, invites tenders for
ft 1,100*000,000 > or thereabouts, of
90 ~day Treasury bills, for cash and
—
in exchange for Treasury bills maturing
February 23. 195.1— > 'to ^ issued on
a discount basis under competitive and non-competitive bidding as hereinafter
The bills of this series will be dated
will mature
May 2h> 195l * when the face amount will be payable without
---------—
— -----------They m i l be issued in bearer form only, and in denominations of
interest.
February 23,
29H --- f and
provided.
Tenders will be received at Federal Reserve Banks and Branches up to the
closing hour, two o ’clock p-.su, Eastern Standard time, Monday,,,;
nary 19»,.1291
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 f o m s 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 frcm others must be accompanied
by payment of 2 percent of the face amount of Troasury bills applied for,
TREASURY DEPARTM ENT
Information
Service
release m o r n i n g
Wa s h i n g t o n , d . c .
NEWSPAPERS,
Thursday, February 15, 1951?
The Secretary of the Treasury, by this public notice, invites
tenders for $1,100,000,000, or thereabouts, of 90-day Treasury
bills, for cash and in exchange for Treasury bills maturing
February 23, 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 February 23, 1951, and will
mature May 24, 1951, when -the face amount will be payable without
interest. They will bl issued in bearer form only, and in
denominations of $1,00|, $5,000, $3.0,000, $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, February 19, 1951. 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 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
/.
! 1ù
:
’■
'- £ -
(in-three decimals) of accepted competitive bids. Settlement for
accepted tenders in accordance with tbs bids must be made or
completed at the Federal E e s s ^ f J|jfi$ « February 23, 1951, in cash
or other immediately available
a, lilce.fa.ce amount of
Treasury bills maturing February È3, 1961• Cash and exchange
tenders vili receive equal treatment. Cash adjustments will be
macie 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 uf 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 Coda, 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 thè United States shall be considered to be
interest. Under Sections* k2 and 3*17 (a) {1 ) of the Internal
Revenue Code, as amended by Section 115 of the Revenue Act of 19^1,
the amount of discount at which bills issued hereunder are sold
shall not be considered to accrue until such bills shall be sold,
redeemed or otherwise disposed of, and such bills are excluded from
consideration as capital assets. Accordingly, the owner of
Treasury bills (other than life insurance companies) issued here
under need include in his income tax return only the difference
between the price paid for such bills, whether on original issue
or on subsequent purchase, and the amount actually received either
upon sale or redemption at maturity during the taxable year for
which the return is made, as ordinary gain or loss.
Treasury Department Circular Uo. 4l8, as amended, and this
notice prescribe the terms of the Treasury bills and govern the
conditions of their issue. Copies of thè circular may be
obtained from any Federal Reserve Bank or Branch.
0O0
t
'"TX.
IMMEDIATE RELEASE
\jjjJL f
February itS*, 19gk
I n)
The Bureau of Customs announced today preliminary figures showing the
i ^ o r S ^ c o n s u m p t i o n of c o m i t i e s on which quotas wore
*
the Philippine Trade Act of 19U6, from January 1, 1951, to February 3,
19^1, inclusive, as follows:
Sib
products of the
Philippines
•
• f\/
,
: Established Quota
Quantity
s
•
Buttons ..........
8E>0,000
Cigars ...........
200,000,000
Coconut oil •••••••
C o r d a g e ......... .
Rice .............
Sugars
M
5
:
:
Unit of
Quantity
s
:
Imports as of
February 3, 1951
•
Gross
Number
8,000,000
Pound
6,000,000
n
1,0U0,000
n
1,90U,000,000
Pound
6,5>00,000
Pound
67,069
126,UU8
18,73U,013
87U , 890
69,110,338
(unrefined ..
Tobacco ........ . •
2l,53U
TREASURY DEPARTMENT
Washington
IMMEDIATE RE.LEASE
Wednesday* February 14, 1951
S-2598
The Bureau of Customs announced today preliminary figures showing the
imports for consumption of commodities on which quotas were prescribed by
the Philippine Trade Act of 1946, from January 1, 1951, to February 3,
1951, inclusive, as follows*
•
?
Products of the
Philippines
i
-j.
Established Quota
Quantity
:
:
1....... 1
Unit of
:
Quantity t
Imports as of
February 3, 1951
*
»
Buttons ••••«••«••
850,000
Cigars •••»•«*••»•
200,000,000
Number
Coconut oil *»,«•»
448,000,000
Pound
Cordage ••»»••••••
6,000,000
n
874,890
Rice ••••«»*••••••
1,040,000
it
-
(tr fMnfid
Gross
67,069
126,448
18,734,013
. ...
1,904,000,000
Sugars
Pound
69,110,558
(unrefined ••
Tobacco «•••••••••
6,500,000
Pound
21,554
or»/'
o/
IMMEDIATE RELEASE
February «ìj.,
y 1951
xy
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 February 3, 1951, inclusive, as follows:
0
Commodity
Period and Quantity
Unit
£3 of
Quantity
Imports as of
February 3,
1 9
5
1
Ihole milk, fresh or
sour ........... .
Calendar year
3 ,000,000 Gallon
158
Cream, fresh or sour ...
Calendar year
1 ,500,000 Gallon
39
Butter .................
Nov. 1, 1950Mar. 31, 1951
8,239
50,000,000
pound
29,239,808
pound
(i)
Quota filled
Ihite or Irish Potatoes:
certified s e e d ..... .
other ...............
12 months from 150,000,000
60,000,000
Sept. 15, 1950
Pound
Pound
100,957,039
56,1i26,789
Wal ml+.<5 ...... .
Calendar year
5 ,000,000
Pound
1,100,137
Venezuela
2,607,066,000
Netherlands
820,7U3,000
Other countries 961,191,000
Gallon
Gallon
Gallon
531,880,92ll.
396,61i2,027
306,993,9li9
Fish, fresh or frozen,
filleted, etc., cod,
haddock, hake, pollock,
cusk, and rosefish ... Calendar year
Petroleum and petroleum
p r o d u c t s ......
(2) Calendar year
(1)
The proviso to item 717(b) limits the imports for consumption at the
quota rate to 7,309,952 pounds during the first three months of the
calendar year,
(2)
Estimated quotas.
TREASURY DEPARTMENT
Washington
250
IMMEDIATE RELEASE
Wednesday, February
14t 1951
S-2599
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 February 3, 1951, inclusive, as follows:
Commodity
Period and Quantity
Unit
of
Quantity
Imports as of
February 3,
1951
Whole milk, fresh or
sour ..............
Calendar year
3,000,000
Gallon
158
Cream, fresh or sour •••
Calendar year
1,500,000
Gallon
39
Butter ••••••••••••*•#••
Nov* 1, 1950Mar. 31, 1951
50,000,000
Pound
8,239
29,239,808
Pound
a)
Quota filled
150,000,000
60,000,000
Pound
Pound
100,957,039
56,426,789
5,000,000
Pound
1,100,137
Fish, fresh or frozen,
filleted, etc*, cod,
haddock, hake, pollock,
cusk, and rosefish «•* Calendar year
White or Irish potatoes:
certified seed *•••••*
o t h e r ........... .
12 months from
Sept. 15, 1950
Walnuts .......*••••••*.
Calendar year
Petroleum and petroleum
products •*••«••
(2) Calendar year
Venezuela
2 ,607,066,000
820.743.000
Netherlands
Other countries 961.191.000
Gallon 531,880,924
Gallon 396,642,027
Gallon 306,993,949
(1) The proviso to item 717(b) limits the imports for consumption at the
quota rate to 7,309,952 pounds during the first three months of the
calendar year*
(2)
Estimated quotas
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, 19bl, as modified by the President's proclamation of April 13, 191*2,
for the 12 months commencing May 29, 1950, as follows:
Wheat
Country
of
Origin
Established :
Imports
Quota
tMay 29, 19£0> to
*Feb • 3• 1951
(Bushels)
(Bushels)
Canada
795,000' "
China
Hungary
—
Hong Kong
Japan
100
United Kingdom
—
Australia
100
Germany
*100
Syria
New Zealand
Chile
100
Netherlands
2,000
Argentina
100
Italy
Cuba
1,000
France
Greece
100
Mexico
Panama
—
Uruguay
—
Poland and Danzig
Sweden
Yugoslavia
—
Norway
*
Canary Islands
1,000
Rumania
100
Guatemala
100
Brasil
Union of Soviet
Socialist R e p u b l i c s
100
100
Belgium
795,000
—
—
mm
mm
mm
mmt
mm
mm*
—
•MR
MM
_
—
mm
mm
■a
MM
MM
mm
MM
MM
Wheat flour, semolina,
crushed or cracked
wheat, and similar
wheat products
Established :
Imports
Quota
t May 29, 1950,
: to Feb. 3, 19
(Pounds)
(Pounds)
3,815,000
2h,000
13,000
3,815,000
9,iil5
13,000
180
-
8,000
75,000
1,000
5,000
5,000
1,000
1,000
1,000
ib,ooo
2,000
12,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
—
—
-
■
•—
-
2,295
1*09
-
-
33
•M
MM
•M
*
*
-
MM
8uu;uuu
U,ooo,u00
795,000
3}827,332
252
TREASURY DEPARTMENT
Washington
immediate r e l e a s e ,
Wednesday« February 14-, 1951
S-2600
The Bureau of Customs announced today preliminary figures showing the
quantities of wheat and wheat flour entered, or withdrawn from warehouse, for
consumption under the import quotas established in the President's proclamation
of May 28, 1941, as modified by the President's proclamation of April 13, 1942,
for the 12 months commencing May 29, If50, as follows:
Wheat
-Country
of
Origin
Established :
Imports
Quota
:May 29, 1950, to
:Feb« 3. 1951
(Bushels)
(Bushels)
795,000
Canada
China
to#
Hungary
Hong Kong
Japan
100
United Kingdom
to*
Australia
Germany
100
100
Syria
Mew 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
to*
Rumania
1,000
Guatemala
100
Brazil
100
Union of Soviet
Socialist Republics
100
Belgium
100
795,000
800,000
795,000
to*
—
-
—
to*
—
—
—
to*
m
«.
4H.
—
to*
Wheat flour, semolina,
crushed or cracked
wheat, and similar
..._wheat products
Established :
Imports
Quota
s May 29, 1950
* to Feb. 3« 1951
(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
9,415
-
180
—
—
to*
—
-
2,295
409
to*
to*
to*
to*
to*
33
<i*
W0
to*
to*
*
to*
to*
to*
to*
to*
to*
4,000,000
3,827,332
-
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
:
*
United Kingdom ........
Canada .................
France ................
British India .........
Netherlands ...........
Switzerland ...........
Belgium ................
Japan .................
China .................
Egypt .................
C u b a ..... .............
Germany ................
I t a l y .... .............
Established
TOTAL QUOTA
: Total imports
! Sept. 20,1950, to
: Feb. 3, 1951
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
1,441,152
107,191
68,070
69,627
-
5,482,509
1,712,050
1/ Included in total imports, column 2.
Prepared by the Bureau of Customs
—
1,854
—
—
—
24,156
-
Imports
: Established :
•
33-1/3* of : Sept. 20,1950
: Total Quota : to
3* 1951
1,441,152
1 ,441,152
-
-
75,807
/
68,070
_
-
22,747
14,796
12,853
V
-
1,854
—
25,443
24,156
7,088
—
1 ,599,886
1,535,232
1/
v
iNaHj,H¥daa ¿.Kfisvnnii.
IMMEDIATE RELEASE
Washington
February 13^ 1951
/
¿>2. (S' ° /
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 harsh or rough under 3/4”
Imports Sept. 20, 1950, to February 3, 1951, inclusive
Country of Origin
Established Quota
Egypt and the AngloEgyptian Sudan ....
783,8X6
Peru...........
247,952
British India ... ..
2,003,483
China ........... , 1,370,791
Mexico .......... h! 8,883,259
Brazil ..........
618,723
Union of Soviet
Socialist Republics
475,124
Argentina....... .
5,203
Haiti...... ....
237
Ecuador .........
9,333
Imports
—
95,833
—
—
37,669
404,463
—
-
Country of Origin
Established (
Honduras ..........
Paraguay ..........
Colombia ..........
Iraq.............
British East Africa ...
Netherlands E. Indies...
Barbados ..........
l/0ther British W. Indies
Nigeria ...........
2/0ther British W. Africa
3/0ther French Africa ...
■Algeria and Tunisia ...
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.
2/ Other than Algeria, Tunisia, and Madagascar.
hj Reopened February 1, 1951
Cotton l-l/8” or more, but less than 1-11/16”
Cotton, harsh or rough, of less than 3/4”
Imports Feb. 1, 1951, t© Feb. 3, 1951
Imports Sept. 20, 1950, to Feb. 3, 1951
Established Quota (Global)
Imports
Established Quota (Global)
Imports
45,656,420
Quota filled
7 0 ,00 0,0 00
4 ,5 4 6 ,4 6 8
Cotton, harsh or rough (except cotton of per
ished staple, grabbots and cotton pickings)
of 1-3/16” or more but less than 1-3/8”
Imports Oct. 9, 1950, to Jan. 31, 1951
Established Quota (Global)
Imports
1,500,000
307,210
Cotton 1-3/8”, but less than 1-11/16”
Imports Oct. 12, 1950, to Jan. 31, 1951
Established Quota (Global)
Imports
7,500,000
7,488,799
Imports
TREASURY DEPARTMENT
Washington
IMMEDIATE RELEASE
Wednesday, February 111* 1951
S -2601
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 l-*l/8 inches other than harsh or rough under 3/ii”
Imports Sept, 20, 1950, to February 3, 1951* inclusive
Country of Origin
Established Quota.
Imports
Egypt and the Anglo-
783*316
Egyptian Sudan *••
Peru ...............
21*7,952
British India .....
2,003,li83
China ............ .
1,370,791
Mexico ......... .
1*/ 8,883,259
Brazil .......... .
618,723
Union of Soviet
Socialist Republics
lt75,12i*
Argentina
5,203
Haiti ........... *.
237
E c u a d o r .... .......
9,333
95,333
»
.»
37,669
l*0l*,l*63
—
-
1/ Other than Barbados, Bermuda, Jamaica, Trinidad
"2/ Other than Gold Coast and Nigeria,
3/
%/
Country of Origin
Established Quota
Honduras ............
Paraguay •
Colombia •.*.............
Iraq ............... ..
British East Africa ...
Netherlands E. Indies ,
Barbados .............
752
871
121*
195
2,21*0
71,388
l/0ther British W. Indies
Nigeria ... ••.. .... ....
2/0ther British ¥• Africa
3/0ther French Africa
Algeria and Tunisia ...
21,321
5,377
16,001*
689
Imports
-
-
-
-
and Tobago,
Other than Algeria, Tunisia, and Madagascar,
Reopened February 1, 1951
Cotton, harsh or rough, of less than 3/U"
Imports Sept, 20, 1950, to Feb, 3* 1951
Established Quota (Global)
Imports
70, 000,000
1**51*6 , 1*68
Cotton, harsh or rough (except cotton of per
ished staple, grabbots and cotton pickings)
of 1-3/16n or more but less than 1-3/8”
Imports Oct, 9* 1950, to Jan, 31* 1951
Established Quota (Global)
1 ,500,000
Cotton 1-1/8” or more, but less than 1-11/16”
Imports Feb, 1, 1951* to Feb* 3* 1951
Established Quota (Global)
Imports
1*5*656,1*20
Quota filled
Cotton 1-3/8”, but less than 1-11/16”
Imports Oct, 12, 1950, to Jan, 31* 1951
Established Quota
7,500,000
(Global)
Imports
7,1*88,799
Imports
307,210
ro
CJl
cn
-’
• ■- B .....
... COTTON WASTES " "• : ‘
US ;
(In pounds) . T
l&n'i •>
COTTON CARD .STRIPS made from cotton hasing 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: Presided, KdweVer, that not more than 33-1/3 percent of the quotes 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* Ttaly: .
Country of Origin
:
Established
TOTAL QUOTA
: Total imports
:
: Sept. 20, 1930, to :
: Feb. 3, 1931
’ :
United Kingdom
' ii,3231 5 7
Canada •
239,690
France *#••»•••**»*•»»*«
227,1*20
.•
British India
69,627
Netherlands .......... .
68,21*0 ,
Switzerland
11,388
Belgium •«»•.»
*••<*•••*
r-i.
38,559
Japan •......•.*••.•*••.«*>» ■ 3 til,535
China v ...••«.••*«.
«• •■
17,322.
Egypt
...».««*•»»•..• . <
8,135
Cuba
6,51*1*
Germany
•,'i " S 76,329
Italy #>•.*•*#•t* •• *•'
■»••••
-21,263
•
V
5,li'82,509
1/ Included in total imports, column 2.
Prepared by the Bureau of Customs
1, ¡lili,152
107,191
68,070
69,627
.
Established :
Imports
33-1/3* of .• Sept. 20, 1930
Total Quota : to Feb. 3, 1931
l,liiil,152
■*»■
75,807
21i,156
-
22,7il7
Hi, 796
12,853
,# „ V • ..
■
Hi : 23,1*1*3
'*: '7,088
1,712,050
1,599,886
—
l,851i
-
1/
l,lilll,152
«*■
6S>070
. - ■f* .
; ; .;;'.--ir....' w
- ,£.
'
« . :. l,85ll
_c" ...
. \
t
J
A
. ’ .' .
••
v;.0 ■2li,l56
-:
1,535,232
HSXEASE, MGRHINO HEKSPAPERS*
Tuesdayt February 2Qj 1951«
tkm
Secretary of the Treasury announced last evening that the tenders for
11,100,000,000, or thereabouts, of SXiay Treasury b ills to be dated February 23 and
to mature May 21», 1951, which were offered on February 15, were
opened
at the Federal
Reserve Banks on February 19*
The details of this issue are as follows i
S S s f i / 01" " * i X S ’, W
Total aeeeptea
Average price
(includes $115,979,000 entered on a
\ ^ eempetiiive basis and accepted in
fu ll at the average price shown below)
- 99*653 Equivalent rate of discount approx, 1*390% per annum
Range of accepted competltivie bidet
99*655 Equivalent rate of discount 1*330% per annum
99.652
1 392
High
*
Low
« «
«
. #*
(91 percent of the amount bid for at the low price was accepted)
Total
Federal Reserve
Applied
yISwriCw
$
Boston
Hew lork
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
it* Louis
Minneapolis
Kansas City
Balias
Francisco
for
13,992,000
1,1*33, 81i3,000
31.553.000
62.703.000
22.692.000
23,71*6,000
211,180,000
13,801»,000
6,730,000
1*6,998, OCX)
33,1*78,000
117.21*5,000
TOTJO.
$2,022,961», 000
Total
Accepted
|
12,71*3,000
650.905.000
I5,l*85,ooo
50,61*2,000
21.583.000
22.386.000
155.718.000
11,288,000
H 991*,ooo
37.517.000
19.698.000
99,805^)00
$l,102,76It,QOO
TREASURY DEPARTM ENT
Information
Service
RELEASE MORNING NEWSPAPERS,
Tuesda y , February 20, 1951.
The Secretary of the Treasury announced last evening that the
tenders for $1,100,000,000, or thereabouts, of 90-day Treasury bills
to be dated February 23 and to mature May 24, 1951, which were
offered on February 15, were opened at the Federal Reserve Banks on
February 19.
The details of this issue are as follows:
Total applied for - $2,022,964,000
Total accepted
- 1,102,764,000 (includes $115,979,000
entered on a non-competitive
basis and accepted in full
at the average price shown
below)
Average price
- 99*653 Equivalent rate of discount approx.
1.390$ per annum
Range of accepted competitive bids:
- 99.655 Equivalent rate of discount 1 .380$
per annum
- 99.652 Equivalent rate of discount 1.392$
per annum
High
Low
(91 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
$
13 ,992,000
1 ,438,843,000
31,553,000
$
12,743,000
6 50,905,000
13,804,000
6 ,730,000
46,998,000
33 ,^78,000
117,245,000
15,485,000
50,642,000
2 1 ,583,000
22 ,386,000
15 5 ,718,000
1 1 ,288,000
4,994,000
37,517,000
19 ,698,000
99 ,805,000
$2 ,022,964,000
$1 ,,102,764,000
62 ,703,000
22 ,692,000
23,746,000
2 11 ,180,000
TOTAL
Total
Accepted
0O0
immediate release
Tuesday» February 20, 195.1
George J» Schoeneman, Commissioner of Internal Revenue,
announced today that investigations have been completed and
action taken in the cases of two employees of the Bureau of
Internal Revenue in California, who have been under suspension
following charges of misconduct in office*
John B* Williams, of the Accounts and Collections Unit at
Los Angeles, has been* exonerated of the charges and has been
restored to duty*
William D. Malloy, Deputy Collector at San Francisco, has
been removed from the service as a result of the investigations*
The investigation of the Mountain City Consolidated Copper
Company, of Nevada, has been completed, the Commissioner said,
and the report is undergoing study by the Bureau*
He added that
an investigation of Ernest M* Schino, Deputy Collector at San
Francisco, is not fully complete, and that no statement regarding
that case would be proper at this time*
<vS<
TREASURY DEPARTM EN T
■an
Information
Service
WASHINGTON, D .C
IMMEDIATE RELEASE,
Tuesday, February 20, 1951.
S-2603
George J. Schoeneman, Commissioner of Internal
Revenue, announced today that investigations have
been completed and action taken in the cases of two
employees of the Bureau of Internal Revenue in
California, who have been under suspension follow
ing charges of misconduct in office.
John B. Williams, of the Accounts and
Collections Unit at Los Angeles, has been exonerated
of the charges and has been restored to duty.
William D. Malloy, Deputy Collector at
San Francisco, has been removed from the service
as a result of the investigations.
The investigation of the Mountain City
Consolidated Copper Company, of Nevada, has been
completed, the Commissioner said, and the report
is undergoing study by the Bureau. He added that
an investigation of Ernest M. Schino, Deputy
Collector at San Francisco, is not fully complete,
and that no statement regarding that case would
be proper at this time.
oOo
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
bZ
and 117 (a) (1) of the Internal Revenue Code,
as amended by Section 11$ of the Revenue Act of 19hl, the amount of discount at
which bills issued hereunder are sold shall not be considered to accrue until
such bills shall be sold, redeemed or otherwise disposed of, and such bills are
excluded from consideration as capital assets.
Accordingly, the owner of
Treasury bills (other than life insurance companies) issued hereunder need 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
wmm.
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
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 shal]j
be final.
Subject to those 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 throe 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
March 1, 1951
;
in cash or other immediately avail
able funds or in a like face amount of Treasury bills maturing
Cash and exchange tenders will receive equal treatment.
March
Cash adjustments
will tj
made for differences between the par value of maturing bills accepted in exchangj
and the issue price of the new bills.
The income derived from Treasury bills, whether interest or gain from t
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 JE5j
special treatment, as such, under the Internal Revenue Code, or laws
or supplementary thereto.
gift
The bills shall be subject to estate,
amendatory
inheritance,
or other excise taxes, whether Federal or State, but shall be exempt f
all taxation now or hereafter imposed on the principal or interest there
TREASURY DEPARTMENT
Washington
/
6
FOR RELEASE, MORNING NEWSPAPERS,
Thursday, February 22, 1951
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 e x c S T f T T r e a s u r y bills maturing J S £ L ^ 1 ------- , to be issued on
a discount basis under competitive and non-competitive bidding as hereinafter
provided.
vri.ll mature
interest.
The bills of this series will be dated _ —
May 31, 1951
They
t,lare^
^
■■■— •'1
.» v,hon tho face amount 15411 b ° payabl° T,ithout
v r i l l T issued in bearer f o m 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,Mondayr February g6„0 2S>
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, wxth not more than thr
decimals, e. g., 99.92$.
Fractions m ay not be used.
It is urged that tenders
be made on tho printed forms and forwarded in the special envelopes which will
be supplied b y Federal Reserve Banks or Branches on application therefor.
Others than banking institutions Trill not be permitted to submit tend
except for their ovm account.
Tenders
T rill
be received without deposit
incorporated banks and trust companies and frcm responsible and recognized
dealers in investment securities.
Tenders iron others must be accompanied
by payment of 2 percent of the face amount of Treasury bills applied for,
oo
D
RELEASE MORNING NEWSPAPERS,
Thursday, February 22, 1951.
S-2604
The Secretary of the Treasury, by this public notice, invites
tenders for $1,100,000,000, or thereabouts, of 91-day Treasury
hills, for cash and in exchange for Treasury bills maturing
March 1, 1951, to be issued on a discount basis under competitive
and non-competitive bidding as hereinafter provided. The hi 11s
of this series will be dated March 1 , 1951 , and will mature
May 31, 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, February 26, 1951. T&Mers will not be received at the'
Treasury Department, Washington. Each tender must be for o,n even
multiple of $ 1 ,000, and in the case of competitive tenders the
price offered must he 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
amounc 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
irom 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 March 1, 1951, in cash or
other immediately available funds or in a like face amount of
Treasury bills maturing March l, 1951« Cash and exchange tenders
will receive equal treatment* Cash adjustments will be made for
differences between the par value of maturing bills accepted in
exchange and the issue price of the new bills.
The income derived from Treasury bills, whether interest or
gain from the sale or other disposition of the bills, shall not
have any exemption, as such, and loss from the sale or other
disposition of Treasury bills shall not have any special treatment
as such, under the Internal-Revenue Code, or laws amendatory or
supplementary thereto. The bills shall be subject to estate,
inheritance, gift or other excise taxes, whether Federal or State,
but shall be exempt from all taxation now or hereafter imposed
on the principal or interest thereof by any State, or any of the
possessions of the United States, or by any local taxing authority.
For purposes of taxation the amount of discount at which Treasury
bills are originally sold by the United States shall be considered
to be interest. Under Sections k2 and 117 (a) (l) of the
Internal Revenue Code, as amended by Section 115 of the Revenue
Act of .1941, the amount of discount at which bills issued here
under are sold shall not be considered to accrue until such bills
shall be sold, redeemed or otherwise disposed of, and such bills
are excluded from consideration as capital assets. Accordingly,
the owner of Treasury bills (other than life insurance companies)
issued hereunder need include in his income tax return only the
difference between the price paid for such bills, whether on
original issue or on subsequent purchase, and the amount actually
received either upon sale or redemption at maturity during the
taxable year for which the return is made, as ordinary gain or
loss.
Treasury Department Circular No.■4l8, as amended, and this
notice, prescribe the terms of the Treasury bills and govern the
conditions of their issue. Copies of the circular may be obtained
from any Federal Reserve Bank or Branch.
0O0
RELEASE,
M .
'if
S
(a
Secretary Snyder today announced the retirement of
Robert B. McCandless as Second Deputy Comptroller of the Currency
and the appointments, effective March 1, 1951, of Lewellyn A.
Jennings as his successor and of William M. Taylor as Third Deputy
Comptroller to succeed Mr. Jennings.
Mr. McCandless, a native of Iowa, entered the
Comptroller! &e office in 1924 and has been a raAnti member
of the staff of the Washington office in various capacities since
1932, having served as a Deputy Comptroller since 1941* He is
retiring to devote his full time to
personal interests.
jn recognizing the high quality of
_
t,The satisfaction which
Mr. McCandless* service,
you must feel from the knowledge ofN^uving so well and faithfully
period is a recompense which
served your government for such a
only one with such a record of perfo— ce and accomplishment can
appreciate and enjoy.1* 1 Comptroller of e Currency Preston Delano
wrote him* M
You have beena tower of st: ngth in this office, and
toned judgment and mature
we shall keenly feel the loss of your
counsel.tt
1
I
Mr. Taylor, a native of Norfolk! Virginia and a graduate
of Princeton, became a member of the Comptroller* s bank examining
staff in 1926. From 1933 to 1942 he seifed with the Federal Deposit Insurance Corporation in several Capacities, including that
of Supervising Examiner of the New York/District. During Wor
War II he served as an officer in the Whited States Naval Reserve.
He has been an Assistant Chief NatioBbl Bank Examiner since April,
1946.
/
»
*
IMMEDIATE RELEASE,
Mondayj February 26, 1951
S-2605
Secretary Snyder today announced the retirement of Robert B.
McCandless as Second Deputy Comptroller of the Currency and the
appointments, effective March 1, 1951, of Lewellyn A« Jennings as
his successor and of William M*. Taylor as Third Deputy Comptroller
to succeed Mr. Jennings.
m
Mr. McCandless, a native of Iowa, entered the Comptroller *s
° H f ce
1^27 and bas been a ®®m^er of the staff of the Washington
office in various capacities since 1932, having served as a Deputy
Comptroller since 191*1. He is retiring to devote his full time to
personal interests.
In recognizing the high quality of Mr. McCandless* service,
said! ”The satisfaction which you must feel from
the knowledge of haying so well and faithfully served your government
lor such a long period is a recompense which only one with such a
record of performance and accomplishment can appreciate and enjoy."
Comptroller of the Currency Preston Delano wrote him; "You
have been a tower of strength in this office, and we shall keenly
leel the loss of your seasoned judgment and mature counsel."
Mr. Taylor, a native of Norfolk, Virginia and a graduate of
m n c eton, became a member of the Comptroller *s bank examining staff
Fr°m 1^
ExSiner1«? Ih
t0
he scrved with the Federal Deposit Insurance
?a£?cities> including that of Supervising
of.th®Nef York district* During World War II he served as
Chiftf
^ * 5 ® United^States Naval Reserve. He has been an Assistant
Chief National Bank Examiner since April, 19i*6.
oOo
cL(* @(o
Hie 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 March 1 and to
mature May 31* 1951* which were offered on February 22, were opened at the Federal
Reserve Banks on February 26*
Hie details of this issue are as follows!
Average price
1,105,413,000 (includes $93,034,000 entered on a
non-competltlve basis and accepted in
full at the average price shown below)
- 99*649 Equivalent rate of discount approx. 1*390£ per annua
Bange of accepted competitive bids!
(66 percent of the amount bid for at the low price was accepted)
Federal Reserve
District_____ _
Boston
Hew fork
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dalis*
San Francisco
total
Total
Apdied for
Total
Accepted
I
6,979,000
1,394,093,000
♦
32.799.000
55.392.000
4.475.000
8 .816.000
278,338,000
23.546.000
3 ,020,000
29 008.000
.
5,937,000
712,690,000
20,099,000
44,304,000
4.447.000
6.676.000
202,258,000
19 ,566,000
2, 992,000
27,008,000
16,600,000
30.216*000
1 4 , 460,000
¿2.976,000
$1,904,062,000
»1,105,413,000
TREASURY DEPARTM ENT
Information
Service
WASHINGTON. D .C .
or 7
¿LO s
RELEASE MORNING NEWSPAPERS,
Tuesday, February 27, 1951.
S -2606
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 March 1 and to mature May 31, 1951, which were offered
on February 22, were opened at the Federal Reserve Banks on
February 2o;
The details of this issue are as follows:
Total applied for - $1,904,082,000
Total accepted
1,105,413,000 (includes $93,084,000
entered on a non-competitive
basis and accepted in full
at the average price shown
below)
Average price
- 99.649 Equivalent rate of discount approx.
1.390$ pet annum
Range of accepted competitive bids
High
99*660 Equivalent rate
1.345$
99.648 Equivalent rate
1 .393$
Low
of discount approx.
per annum.
of discount approx.
pet annum
(86 percent of the amount bid for at the low price was accepted)
F e d e ra l R e s e r v e
D is tr i c t __
Total
Applied for
Boston
Rev Y o r k
P h ila d e lp h ia
C le v e la n d
Richmond
A tla n ta
Chicago
St. L o u is
M in n e a p o lis
Kansas City
D allas
San F r a n c i s c o
TOTAL
Total
Accepted
I
6,970 , 0 0 0
1 , 3 9 4 , 8 9 3 ,000
3 2 , 7 9 9 ,0 0 0
5 5 , 3 9 2 ,000
4 475 , 0 0 0
8,816 ,000
278,338 ,0 0 0
23,546 ,0 0 0
3,020 , 0 0 0
29,008 ,0 0 0
16,600 , 0 0 0
50,216 , 0 0 0
5.937.000
712 , 690,000
20 ,099,000
44.304.000
4.447.000
8 .676.000
202,258,000
19 .566.000
2 ,992,000
27 ,008,000
14.460.000
42.976.000
$1,904,082,000
$1,105,413,000
0O0
- 3 -
£LPKi
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 b ills are originally sold by the United States shall be considered to
be interest.
Under Sections
as amended by Section
11$
U2
and
U7
(a)
(1)
of the Revenue Act of
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 b ills (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.
U18,
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
-
asmos
unloss 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 io.3.1 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
March 8, 1951
*
cas^ or ° ^ er immediately ava^j
~
pgrable funds or in a like face amount of Treasury bills maturing March 8, 1 9 ^
Cash and exchange tenders will receive equal treatment.
Cash adjustments will
made for differences between the par value of maturing bills accepted in exchang
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 tho bills, shall not have any exemption, as such,
and loss from the sale or other disposition of Treasury bills shall not have a
special treatment, as such, under the Internal Revenue Code, or laws amendatoty
or supplementary thereto.
Tho bills shall be subject to estate, inheritance,
gift or other excise taxes, whether Federal or State, but shall be exempt f
all taxation now or hereafter imposed on the principal or interest thereof by
KMiïX
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
ThursdayT March 1, 1951_______ .•
The Secretary of the Treasury, by this public notice, invites tenders for
$1,100,000,000
, or thereabouts, of
91
in exchange for Treasury bills maturing
-day Treasury bills, for cash and
.... .
Marcl1
t0 ^
1SSUed °n
a discount basis under competitive and non-competitive bidding as hereinafter
provided.
vail mature
interest.
The bills of this series vail be dated
June 7, 199&
March 8,^1951----- --- * and
.___ * when the face amount will be payable without
They m i l be issued in bearer form only, and in denominations of
Tenders m i l be received at Federal Reserve Banks and Branches up to the
Tenders will not be received at the Treasury Department, Vfashington.
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 Tail 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 d e p a r t m e n t
Information Service
Wa s h i n g t o n , d .c .
271
release m o r n i n g n e w s p a p e r s ,'
Thursday, March I, 19 5 1 -
S-2607
The Secretary of the Treasury, by this public notice, invites
tenders for $1,100,000,000, or thereabouts, of'91-day Treasury
hills, for cash and in exchange /for Treasury bills maturing
March. 8, 1951, to be issued on a discou&t basis under competitive
and non-competitive bidding as hereinafter provided. The bills of
this series will be da*ted March 8 , 19$1, and will mature June 7,
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, March 5, 1951. Tend.ers 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 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
will be advised of the acceptance or rejection thereof. The
Secretary of the Treasury expressly resei’ves 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 March 8 , 1951, in cash or
other immediately available funds or in a like face amount of
Treasury bills maturing March 8 , 1951 * 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 194],
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 ©mended, 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.
-
8
-
Mexico, Garza"\dmitted that h\and his wife had transported
hundreds of pounds of the weed in t^ New York City dur.
the past several yea:
F ifty pounds of marihuana, fourteen ounces of heroin
and an automobile were seized a fte r New York agents
arrested Ernesto Diaz and George Colon, from whom they
had purchased three pounds of the weed.
m nn ^ p r Mnfo
Identified
ryiL
Pvm ™
mrn Ixi Lhe
mtniihnnnn, t r a f f i c» was-aIso plfteed"
TIuj
ii L
11111rdi
In
custody.
n,n~"tTrivnn,hr r -ci , e f + OT> w ee k ** nf>—
- m d ^ r n o i p i 1i 1 11 mm ~ 1 1 gn 1 1 QTi.
Developing a lead furnished by agents in Houston,
Texas, a New York undercover operative made purchases of
marihuana which resulted in the arrest o f Kiney Davis
and George Hanna, important wholesalers in the New York
area.
Following th eir a rrests, which were accompanied
by the seizure of 15 pounds of marihuana, the two men
admitted that they had made eight trip s to Texas during
preceding months, returning to New York each time with^
40 or more pounds of marihuana
oOo
a x «.
7
Two Important Offenders Convicted ln New York
Robert E. Lee and Dillard Morrison, nationally important
narcotic law violators, received toag prison sentences in
New York, when brought to trial on three separate heroin
sale charges.
On October 10, one month before the trial, a
Government witness was shot and seriously injured.
An
investigation |
YA j"how
^ --und-e
Cmder
-r ■
■■■wtfv
yaffi tto de tormine”
o
o iy-evyionco
n
w
^ raiitiM n
tin I n d i c t Mrrrtn^n <
n-irq
the attomptod murcbcr .*— a a .-.-h i o
Horricon hnd t h ^ 0 n ^ ^ n - ^ n n n n
""
^f Tiia-,a,T»r»pst ,
nrtniy»fit. h i m ~±n
New Y o r k State eou r t.-»
Lee was sentenced to seven years in prison, and fined
$3,500.
Morrison was fined $2,500 and given a five-year
sentence.
Large Marihuana Seizures
New York Narcotic agents, who had made a purchase
of five pounds of marihuana from Lucile Garza, arrested
the woman and her husband, Elias Garza, on October 21.
A late-model automobile and sixty additional pounds of
marihuana were taken at the time of the arrest.
Garza,
who resisted the officers, was slightly wounded.
6 o r r s r r d e w d ^ n e ^ f ^ h e T a r g e ^ '^ sn r& g g leiC " bC^m ar ih u ih a ^ ^
ycop~n-mfi®b- Imp octant investigation^/ which
carried agents to three widely-separated states and resulted
in the arrest of eight principals in the narcotic traffic and
the seizure of large quantities of heroin, was outlined^i»tho report.
Robert Lee Kimball, a prominent figure in the Texas
narcotic trade, was arrested near San Antonio in September,
charged with making several sales of heroin.
The magnitude
of Kimball's operations was indicated by the disclosure
that on one occasion he paid over $60,000 for a single con
signment of heroin, and that transactions involving cash
outlays of $15,000 and above were not unusual.
Evidence
developed prior to the arrest pointed to Detroit and
New York as Kimball's sources of supply.
Kimball, who had made bond for his appearance in Federal
court, was shot and killed on December 3, following a quarrel
with a former business associate in a San Antonio club.
A
few days after Kimball’s death,agents arrested five members
of a Detroit ring, charged with having supplied heroin to the
San Antonio dealer.
On December 17, Narcotic agents at New York arrested
Anthony Pisciotta, who had in his possession two kilograms
of heroin.
Pisciotta, with whom an undercover agent had
opened negotiations for $ 30,000 worth of heroin, Is also
believed to have been one of Kimball's sources of supply.
Rosario Pisciotta, a brother of Anthony, who was implicated in
the case, was later tale‘n into custody.
-
6
-
Death of Cincinnati Girl Leads to Five Arrests
The death of a Cincinnati woman from an overdose of
heroin led to the conviction of five persons, and dis
closed a sordid plan through which young persons were
persuaded to become users of narcotics, so that profits
would be greater from a continually, increasing demand.
Following the death of Blanche Parka*, on August 26,
Treasury agents and members of the Cincinnati Police
Department conducted a joint investigation which
resulted in the arrest of Thomas 0. Young, Addie Mae
Domineak, Alberta Domineak, Emanuel Kennebruew, and
Joseph Bennett.
Evidence developed during the investi
gation revealed that this group was starting young
persons on the way to addiction by giving them free
injections of heroin.
Four of the defendants received sentences of five
years each for violation of Federal narcotics laws.
Addie Mae Domineak, convicted of first degree manslaughter
in connection with the death of Blanche Parker, and of
violating the Ohio Narcotics law, received an indefinite
sentence.
Q C"
o \ I*
- 5 \ The investigation of Wong, which had been in progress
for several months, followed an upsurge' of the opium
traffic in the Twin Cities.
During the raid/ which
culminated in the death of Supervisor Bangs, four associates
of Wong were arrested, and large quantities of prepared
and raw opium seized.
K ansas City Heroin Dealer Draws Long Sentence
Joseph Hurd Rucks, who had become the most important
heroin dealer in Kansas City, Missouri, was arrested by
Narcotic^'agents on September 26, I960, after a lengthy
investigation into his illicit enterprises.
Rucks had served a long prison term for seconddegree murder, and after his release, early in 1949,
became actively engaged in the Kansas City narcotics
traffic.
Sales of heroin were handled through lieutenants,
changed at frequent intervals, and Rucks’ rise to power
in the illicit narcotics trade was accompanied by beatings
and intimidation of persons whom he believed might testify
against him.
After agents had succeeded in making several purchases
from Rucks and other members of his ring, he was placed under
arrest and a late-model automobile seized.
On October 13,
1950 , after pleading guilty to five counts charging violation
of the Federal Narcotic law, Rucks was sentenced to a total
of fifteen years in prison.
Among the men arrested were Ricc&rdo Morganti and
Cesare Melli, partners in a wholesale pharmaceutical
f t * * ^
concern in Trieste. Investigation revealed thah Morganti
and Melli h a d / a
yaQTUtj regularly purchased
kilogram lots of heroin from licensed manufacturers. The
drug was later diverted to illicit channels, particularly
to Italian nationals who were engaged in supplying heroin
to United States smugglers.
District Narcotics Supervisor Killed in Minneapolis
On September 24,^ 1950, following a raid on an opium
smoking*party in a St. Paul, Minnesota, hotel, Narcotics
District Supervisor Anker M. Bangs was shot and killed
and Narcotic Agent Joseph Winberg seriously wounded.
Wong Chong Sing, alias John Wong, leader of the On
Leong Tong in St. Paul and thrice-convicted narcotics
offender, seized a hidden pistol and opened fire on Bangs
and Winberg while pretending to assist the officers in
locating a cache of narcotics he had concealed 4-n 'unotluM.1'
*
Hfrpa.ptmenf>. After having been mortally wounded, Supervisor
Bangs was able to return the fire.
Wong, howaTroPj survived
five bullet wounds, and in December was convicted of
murder and assault, and sentenced to life imprisonment.
Bill
U ;|S
O —
— U
his possession a quantity of heroin.
Subsequent in
vestigation by deputy sheriffs and Narcotic agents
disclosed that Henry was being supplied by an American
seaman, who smuggled large quantities of heroin fiom
the port of Genoa, Italy, into this country.
Italian authorities having previously requested
the assistance of American operatives in the investi
gation of narcotic traffic between the two countries,
two agents of the Bureau of Narcotics were sent to
Italy.
Collaborating with law enforcement groups in
Italy, and with Army and local police in Trieste, the
agents conducted an extended investigation, which
resulted in the arrest of seventeen principals, and
the seizure of large quantities of heroin and crude
opium destined for the American traffic.
2
Large seizures of narcotics by Treasury agents
during
some of which represented substantial
1949,
fortunes at illicit prices, were believed to have
prompted smugglers to adopt a
1950
strategy of trying
numerous small shipments, instead of risking large
supplies on single ventures.
The drop in opium-type
drugs taken along the Mexican border may have been
the result of efforts by the neighboring republic to
stamp out poppy growing, the report said.
The marihuana
ment
problem.
Individual
and over were
and numerous
riving
made
by
smaller
at v a r i o u s
of m a r i h u a n a w e r e
of h a s h i s h
traffic
and other
seizures
Customs
a major
of u p
to
enforce
100 pounds
on the M e x i c a n border,
amounts were
ports.
of
remained
Some
found on ships
of
these
smaller
Middle E a s t e r n origin,
ar
lots
consisting
p r e p a r e d forms.
Typical enforcement accomplishments during the
year were outlined in the report.
Agents Attack Source of Heroin in Italy and Trieste
An investigation by Narcotic agents which reached
from Los Angeles to Trieste and Genoa and Padova de
veloped into one of the year’s most significant cases,
and probably shut off a considerable supply of heroin
-..-Lien
aqd
been
finding its way into this country’s
illicit traffic.
In M a r c h
1950,
S h e r i f f ’s o f f i c e
officers
of
arrested Walter
the
M.
Los A n g e l e s
Henry,
who
Co u n t y
had
in
VS***#'
93 f
Agents
of
30
of
t h e B u r e a u of N a r c o t i c s
arrests each
the p r e s e n t
in
1950,
s y s t e m of
a g o , according
to S e c r e t a r y
to
records
by
was
an
average
average
instituted
report
since
15 y e a r s
made
today
t h e B u r e a u of N a r c o t i c s
t h e B u r e a u of C u s t o m s .
charged with
the h i g h e s t
a calendar—year
Snyder
made
These
enforcement
of
Treasury
and
agencies
the n a r c o t i c
a re
ano. m a r i h u a n a
laws.
with
Total
arrests
5,273
in
the n a r c o t i c
of
1949.
laws- a n d
the m a r i h u a n a
The
1950 were
There
internal
4,072
arrests
traffic,
a sharp
both
as c o m p a r e d
arrests under
for violations
decline
in t h e
seizure
at p o r t s
and borders
and
2,439 ounces
having been
taken
5,027 ounces
marihuana
also
taken,
compared with
as
5,5 2 2 ,
law.
drugs,
as c o m p a r e d w i t h
were
1,450
year witnessed
of o p i u m - t y p e
the
for
declined,
in
1949,
40,407 ounces
55,304 ounces
Seizures
in
of
having been
in
1949.
Despite reduced seizures, the report said, the
number of arrests indicates that a sharp rise in the
illicit
ago
narcotic
is s t i l l p r e s e n t .
creasing
amounts
reappear
at
free
traffic which
from
it f o r
addiction was
Heroin was
during
lessened
became
the year,
costs
available
and
An
a year
in i n
continued
in a r e a s w h i c h
a long period.
als o noted.
evident
to
had been
increase
in h e r o i n
treasury
Information
d epartm en t
Service
W ASHINGTON, D .C .
*2
RELEASE MORNING NEWSPAPERS,
Friday, March 2, 1951._____
S -2608
Agents of the Bureau of Narcotics made an average of 30
arrests each In 1950 , the highest average since the present
system of records was instituted 15 years ago, according to
a calendar-year report made today to Secretary Snyder by the
Bureau of Narcotics and the Bureau of Customs. These Treasury
agencies are charged with enforcement of the narcotic and
marihuana laws.
Total arrests for 1950 were 5,522, as compared with 5,273
in 19^9* There were 4,072 arrests under the narcotic laws and
1,450 arrests for violations of the marihuana law.
The year witnessed a sharp decline in the seizure of
opium-type drugs, both at ports and borders and in the internal
traffic, 2,439 ounces having been taken as compared with 5,027
ounces in 1949. Seizures of marihuana also declined, 40,407
ounces having been taken, as compared with 55,304 ounces in
1949.
Despite reduced seizures, the report said, the number of
arrests indicates that a sharp rise in the illicit narcotic
traffic which became evident a year ago is still present.
Heroin was available in increasing amounts during the year, and
continued to reappear at lessened costs in areas which had been
free from it for a long period. An increase in heroin addiction
was also noted.
Large seizures of narcotics by Treasury agents during
1949, some of which represented substantial fortunes at illicit
prices, were believed to have prompted smugglers to adopt a
1950 strategy of trying numerous small shipments, instead of
risking large supplies on single ventures. The drop in opiumtype drugs taken along the Mexican border may have been the
result of efforts by the neighboring republic to stamp out
Poppy growing, the report said.
2
The marihuana traffic remained a major enforcement problem.
Individual seizures of up to 100 pounds and over were made
by Customs on the Mexican border, and numerous smaller amounts
were found on ships arriving at various ports. Some of these
smaller lots of marihuana were of Middle Eastern origin, con
sisting of hashish and other prepared forms.
Typical enforcement accomplishments during the year were
outlined in the report.
/
Agents_Attack__Spuree of Heroin in Italy and Trieste
An investigation by Narcotic agents which reached from
Los Angeles to Trieste and Genoa and Padova developed into one
of the year’s most significant cases, and probably shut off
a considerable supply of heroin from finding its wav into this
country's illicit traffic.
In March 1950, officers of the Los Angeles County Sheriff's
office arrested Walter M. Henry, who had in his possession
a quantity of heroin. Subsequent investigation by deputy
sheriffs and Narcotic agents disclosed that Henry was being
supplied by an American seaman, who smuggled large quantities
of heroin from the port of Genoa, Italy, into this country.
Italian authorities having previously requested the
assistance of American operatives in the investigation of
narcotic traffic between the two countries, two agents of the
Bureau of Narcotics were sent to Italy. Collaborating with law
enforcement groups in Italy, and with Army and local police in
Trieste, the agents conducted an extended investigation, which
resulted in the arrest of seventeen principals, and the seizure
of large quantities of heroin and crude opium destined for the
American traffic.
Among the men arrested were Riccardo Morganti and
Cesare Melli,partners in a wholesale pharmaceutical concern in
Trieste. Investigation revealed that over a period of years
Morganti and Melli had regularly purchased kilogram lots of
heroin^from licensed manufacturers. The drug was later diverted
to illicit channels, particularly to Italian nationals who were
engaged in supplying heroin to United States smugglers.
283
- 3 District Narcotics Supervisor Killed In Minneapolis
On September 2b, 1950, following a raid on an opium smoking
party in a St. Paul, Minnesota, hotel, Narcotics District
Supervisor Anker M. Bangs was shot and killed and Narcotic
Agent Joseph Winberg seriously wounded.
Wong Chong Sing, alias John Wong, leader of the On Leong
Tong in St. Paul and thrice-convicted narcotics offender,
seized a hidden pistol and opened fire on Bangs and Winberg
while pretending to assist the officers in locating a cache of
narcotics he had concealed. After having been mortally wounded,
Supervisor Bangs was able to return the fire, Wong survived
five bullet wounds, and in December was convicted of murder
and assault, and sentenced to life imprisonment.
The investigation of Wong, which had been in progress for
several months, followed an upsurge of the opium traffic in
the Twin Cities. During the raid which culminated in the
death of Supervisor Bangs, four associates of Wong were arrested,
and large quantities of prepared and raw opium seized.
Kansas City Heroin Dealer Draws Long Sentence
Joseph Hurd Rucks, who had become the most important heroin
dealer in Kansas City, Missouri, was arrested by Narcotic
agents on September 26, 1950, after a lengthy investigation into
his illicit enterprises.
Rucks had served a long prison term for second-degree
murder, and after his release, early in 19 ^9 * became actively
engaged in the Kansas City narcotics traffic. Sales of heroin
were handled through lieutenants, changed at frequent intervals,
and Rucks' rise to power in the illicit narcotics trade was
accompanied by beatings and intimidation of persons whom he
believed might testify against him.
After agents had succeeded in making several purchases
from Rucks and other members of his ring, he was placed under
arrest and a late-model automobile seized. On October 13, 1950*
after pleading guilty to five counts charging violation of the
Federal Narcotic Law, Rucks was sentenced to a total of
fifteen years in prison.
284
- k -
Death of Cincinnati Girl Leads to Five Arrests
The death of a Cincinnati woman from an overdose of heroin
led to the conviction of five persons, and disclosed a sordid
plan through which young persons were persuaded to become
users of narcotics, so that profits would be greater from
a continually increasing demand.
Following the death of Blanche Parker, on August 26, Treasury
agents and members of the Cincinnati Police Department conducted
a joint investigation which resulted in the arrest of Thomas 0.
Young, Addle Mae Domineak, Alberta Domineak, Emanuel Kennebruew,
and Joseph Bennett. Evidence developed during the investigation
revealed that this group was starting young persons on the way
to addiction by giving them free injections of heroin.
Four of the defendants received sentences of five years
each for violation of Federal narcotics laws. Addle Mae
Domineak, convicted of first degree manslaughter in connection
with the death of Blanche Parker, and of violating the Ohio
Narcotics law, received an indefinite sentence.
Heroin Network Broken by Arrests
Another investigation which carried agents to three widelyseparated states and resulted in the arrest of eight principals
in the narcotic traffic and the seizure of large quantities of
heroin, was outlined.
Robert Lee Kimball, a prominent figure in the Texas narcotic
trade, was arrested near San Antonio in September, charged with
making several sales of heroin. The magnitude of Kimball’s
operations was indicated by the disclosure that on one occasion
he paid over $60,000 for a single consignment of heroin, and
that transactions involving cash outlays of $ 15,000 and above
were not unusual. Evidence developed prior to the arrest
pointed to Detroit and New York as Kimball's sources of supply.
Kimball, who had made bond for his appearance in Federal
court, was shot and killed on December 3* following a quarrel
with a former business associate in a San Antonio club. A few
days after Kimball's death, agents arrested five members of
a Detroit ring, charged with having supplied heroin to the
San Antonio dealer.
5
On December 17, Narcotic agents at New York arrested
Anthony Pisciotta, who had in his possession two kilograms of
heroin. ^Pisciotta, with whom an undercover agent had opened
negotiations for $30,000 worth of heroin, is also believed to
have been one of Kimball's sources of supply. Rosario Pisciotta,
a brother of Anthony, who was implicated in the case, was
later taken into custody.
Two Important Offenders Convicted in New York
Robert E. Lee and Dillard Morrison, nationally important
narcotic law violators, received prison sentences in New York,
when brought to trial on three separate heroin sale charges
On October 10, one month before the trial, a Government
witness was shot and seriously injured. An investigation of
the shooting is still in progress.
Lee was sentenced to seven years in prison, and fined
$3,500. Morrison was fined $2,500 and given a five-year
sentence.
Large Marihuana Seizures
New York Narcotic agents, who had made a purchase of five
pounds of marihuana from Luclie Garza, arrested the woman and
her husband, Elias Garza, on October 21. A late-model automobile
and sixty additional pounds of marihuana were taken at the time
of the arrest. Garza, who resisted the officers, was slightly
wounded;
•
Fifty pounds of marihuana, fourteen ounces of heroin and
an automobile were seized after New York agents arrested
Ernesto Diaz and George Colon, from whom they had purchased
three pounds of the weed.
Developing a lead furnished by agents in Houston, Texas,
a New York undercover operative made purchases of marihuana
which resulted in the arrest of Kiney Davis and George Hanna,
Important wholesalers in the New York area. Following their
arrests, which were accompanied by the seizure of 15 pounds
of^marihuana, the two men admitted that they had made eight
rips to Texas during preceding months, returning to New York
each time with 40 or more pounds of marihuana. Both received
prison sentences.
oOo
K
- 3-
As in the past, the report is accompanied by comprehensive
statistics on various aspects of United States Government foreign
assistance in the postwar period, as well as on gold and short-term
dollar resources of foreign countries and gold transactions between
the United States and foreign countries.
The report stresses the increasing importance of the Mutual Defense
Assistance Program in foreign aid. For example, $5,400,000,000^or more
than sixty percent of the total foreign aid for fiscal 1951 made avail
able by the Congress, is provided under the Mutual Defense Assistance
Program. In contrast, new funds available for obligation to continue
the European Recovery Program for fiscal 1951 were about $2,600,000,000,
as against $3,600,000,000 obligated for fiscal 1950, and $6,000,000,000
for the period April 1948 - June 1949. Under the European Recovery Pro
gram, the report reviews the use of local currency counterpart funds.
New credits extended by the Export—Import Bank during the period
totaled almost $400,000,000 - more than in any corresponding 6 months
period since 1946, .the report states. These credits were principally
for economic development, the production of strategic and critical
materials, and the facilitation of United States trade. ®h© principal
countries receiving such aid were Mexico, Argentina, Brazil, Peru,
Saudi Arabia, Iran, and Yugoslavia.
The report reviews the more inqportant actions of the International
Monetary Fund on exchange rates, the role of Fund missions, and the
lending activities of the International Bank, which, during the period,
granted 10 loans aggregating $229,000,000, to 8 of its member countries
Five of these countries had not previously borrowed from the Bank
(Australia, Uruguay, Turkey, Iraqt, and Ethiopia). The Council noted
that 12 additional countries took action toward making available for
lending all or part of the 18 percent portion of their capital sub
scriptions paid in local currencies. Steps were taken in Mexico and
France to broaden the market for the Bank*s securities*
t*N A
l(
DRAFT PRESS RELEASE ON NAG REPORT
APRIL - SEPTEMBER 1950
*
& <c**/
70 /
Secretary Snyder, as Chairman of the National Advisory Council
on International Monetary and Financial Problems, today transmitted
to the President and to the Congress a report of the Councils
activities during the six months ending September 30, 19i>0#
The Council reviews changes in the balance-of-payments position
of the United States in the postwar period since June 30, 19U5. For
the 5-year period ending June 30, 19^0, the surplus of U,S, exports
of goods and services over imports amounted to $36,800,000,000^ Daring1*
thifrnpopged the large-scale foreign aid programs of this country
cwftuuilted for about three-fourths of ilhi ^ iLfi'f arfn rfr hftfrj fffijiMa otbt f li11"’1
A
p-r+~ rrd ImiiM t '
The Council noted that thj2* surplus has been
declining rather steadily since the peak year of
19U7 • In
this con
nection it is noted that the position of raw material producing
countries has shifted as a result of the increased demand on the part
of the United States for replacement of inventories, stockpiling, and
increased raw material consumption,
A comparison of foreign assistance extended in the war and post
war periods shows that net wartime foreign aid amounted to $Ul,000,000,000,
whereas net foreign aid extended in the postwar period up to June 30, 1950
aggregated $26,200,000,000,
treasury
Information
departm ent
Service
Wa s h in g t o n , d .c .
0Q
¿0
IMMEDIATE RELEASE,
Thursday, March 1, 1931«
S-2609
Secretary Snyder, as Chairman of the National Advisory
Council on International Monetary and Financial Problems,
today transmitted to the President and to the Congress a report
of the Council’s activities during the six months ending
September 30, 1950.
The Council reviews changes in the balance-of-payments
position of the United States in the postwar period since
June 30, 19^5. Eor the 5-y©&r period ending June 30, 1950, the
surplus of U. S. exports of goods and services over imports
amounted to $ 36 ,800,000,000, with the large-scale foreign aid
programs of this country accounting for about three-fourths of
this. The Council noted that the surplus has been declining
rather steadily since the peak year of 19 ^7 - In this con
nection it is noted that the position of raw material producing
countries has shifted as a result of the increased demand on
the part of the United States for replacement of inventories,
stockpiling, and increased raw material consumption.
A comparison of foreign assistance extended in the war and
post-war periods shows that net wartime foreign aid amounted to
$4l,000,000,000, whereas net foreign aid extended in the postwar
period up to June 30, 1950 aggregated $26,200,000,000.
The report stresses the increasing importance of the
Mutual Defense Assistance Program in foreign aid. For example,
$5 ,^00,000,000, or more than sixty percent of the total foreign
aid for fiscal 1951 made available by the Congress, is provided
under the Mutual Defense Assistance Program. In contrast, new
funds available for obligation to continue the European
Recovery Program for fiscal 1951 were about $2,600,000,000, as
against $ 3 ,600,000,000 obligated for fiscal 1950 , and
$6,000,000,000 for the period April 19^8 - June 19^9* Under the
European Recovery Program, the report reviews the use of local
currency counterpart funds.
2
New credits extended by the Export-Import Bank during the
period tota3.ed almost $400,000,000 -- more than in any
corresponding 6 months period since 1946, the report states.
These credits were principally for economic development, the
production of strategic and critical materials, and the
facilitation of United States trade. The' principal countries
receiving such aid were Mexico, Argentina, Brazil, Peru,
Saudi Arabia, Iran, and Yugoslavia.
The report reviews the more important actions of the
International Monetary Fund on exchange rates, the role of Fund
missions, and the lending activities of the International Bank,
which, during the period, granted 10 loans aggregating
$229,000,000, to 8 of Its member countries. Five of these
countries had not previously borrowed from the Bank (Australia,
Uruguay, Turkey, Iraq, and Ethiopia). The Council noted that
12 additional countries took action toward making available for
lending all or part of the 18 percent portion of^their capital
subscriptions paid in local currencies. Steps were taken in
Mexico and France to broaden the market for the Bankfs
securities.
As in the past, the report is accompanied by comprehensive
statistics on various aspects of United States Government
foreign assistance in the postwar period, as well as on gold
and short-term dollar resources of foreign countries and'gold
transactions between the United States and foreign countries.
oOo
treasury
Information
d epar tm en t
Service
W ASHINGTON, D .C
IMMEDIATE REI&AS8 ,
Thursday, Margh IA ■19 5 1 .
S -26 10
The Treasury Department today made
public a report of gold sales to foreign
countries by the United States for the
calendar year 1950.
At the same time
it was announced that publication of
figures of gold sales and purchases
will be made quarterly.
The table showing the 1950 sales is
attached.
0 O0
292
United States Sales of Gold to Foreign Countries 1/
Calendar Year 1950
(iri millions of dollars at $39 per ounce)
1
Country
B elgian Congo,,,,,,
Belgiu m .. . . . . . . . . . .
1st Quarter 2nd Quarter 3rd Quarter Uth Quarter
$ 3.0
$ ~
20.0
35.0
CciricLClcl00t•••••••«•i0
*»M
MM
MM
China (N a tio n a lis t)
*—
M.
ii.2
Colom bia., ............ ......
E g y p t ..............
France
G reece•«••#••••••••
10.0
mmm
27.0
3.0
In d o n e s ia .. . . .
,,.
Mexico•
Netherlands
Norway............................
—
15.8
Peru. . . . . . . . . . . . . . .
P o r tu g a l.. . . . . . . . . .
Salvad or. . . . . . . . . . .
Saudi A ra b ia ............ .
Sweden.
Sw itzerlan d ........
Sw itzerland - Bank
fo r I n te r n a tio n a l
S e ttle m e n ts ............
S y r i a . . . . . . ............ .
United Kingdom,....
Uruguav.
V atican ............
A ll O th e r . .........
79.8
79.8
b'.o
—
3.0
15.0
3.0
3.3.
3,0
15.0
6*0
3.3
3.0
16.0
l+.o
-M
25*0
23.0
38,0
31+.3
65.2
10.0
¡+0.5
—
—
—
--
MM
1*5
1.5
'
—
-MM
13.0
12.8
1.1
12.5
—
'
8,0
80.0
12.0
—
-M
j
Note:
1/
$210.2
j
MM
5-7
.7
580.0
23.9
MM
.1
l
J
------ -1
.
j
1
TOTAL.......
10.0
30,0 .
118 i2
Mm
m m
i*.o
MM
—
20,0
61.9
MM
M-
*
55.0
100.0
1+-.2
100.0
56.3
12.3
—
—
$ 3.0
Ü& 8
8ig.8
lU.lt
2.1
m
Uu8
28.5
—
Total 1
1950
$51.9
171+9.5
MM
2.2
1
360,0 1 ,020.0
26.9 ! 70.8
. b
2*5 |
—
1
j
2.5
.1
$785.6 ft?li797.3
/
Figures will not necessarily add to totals because of rounding'.
During 1950 the United States purchased a total of $68 million in
gold from foreign.countries. Of the countries shown to which sales
of gold were made, the only ones from which the United States also
purchased gold were Uruguay ($ 6 million) and Nationalist China
($300,000).
-
2
-
I t i s contem plated t h a t th e se T reasu ry d e c is io n s w i l l be
p u blish ed w ith th e u su a l n o tic e o f r u le making and p u b lic procedure
th e re o n , so th a t ta x p a y ers w i l l be a ffo rd e d an op p ortu nity to
submit comments and o b je c tio n s p r io r to f i n a l prom u lgation.
0O0
.^7
2
L
I
Coinini2ioner o f I n te r n a l Revenue George J . Sohoeneman today
announced th e issu a n ce o f R eg u latio n s 130 under th e E xcess P r o f it s
Tax Act of 1950*
The regulations have been issued without the usual preliminary
notice, in order that taxpayers may have the benefit of the guidance
of the regulations before March 15, 1951, the date prescribed for
filing returns for the year 1950.
The delay incident to notice of
rule making procedure made it inadvisable to adopt such procedure
in connection with the .^gulations.nu.i "being isrumd.
The Commissioner
will welcome comments and suggestions from taxpayers and their
representatives with respect to any matter contained in these
regulations, and such comments and suggestions will be considered
w ith a view to subsequent amendatory Treasury d e c is io n s .
Because o f th e com p lexity o f th e law and because o f c e r ta in
involved p ro v is io n s which re q u ire e la b o r a tio n in th e r e g u la tio n s ,
i t was im p ossib le a t t h i s e a r ly date t o is s u e r e g u la tio n s covering
all of the provisions of the Act*
For example, no regulations are prescribed under Part II
( s e c tio n s 1*61-1(65) r e la t in g t o th e e x ce ss p r o f i t s c r e d i t based on
income in co n n ectio n w ith c e r t a in exch an ges.
I t i s a ls o recognized
t h a t th e p ro v isio n s o f R eg u latio n s 130 w i l l r e q u ire fu r th e r develop
ment in c e r t a in o th e r a r e a s .
Subsequent T reasu ry d e c is io n s w i l l be
issu e d t o supplement R eg u latio n s 130 in th e em itted o r inccmpl
areas•
treasury
Information
d epar tm en t
Service
W ASHINGTON, D .C .
IMMEDIATE RELEASE,
Friday, March 2, 1951.
S -2611
Commissioner of Internal Revenue George J. Schoeneman today
announced the issuance of Regulations 130 under the Excess
Profits Tax Act of 1950 .
The regulations have been issued without the usual pre
liminary notice, in order that taxpayers may have the benefit
of the guidance of the regulations before March 15 , 1951 , the
date prescribed for filing returns for the year 1950 . The delay
incident to notice of rule making procedure made it inadvisable
to adopt such procedure in connection with the regulations. The
Commissioner will welcome comments and suggestions from taxpayers
and their representatives with respect to any matter contained
in these regulations, and such comments and suggestions will be
considered with a view to subsequent amendatory Treasury
decisions.
Because of the complexity of the law and because of certain
involved provisions which require elaboration in the regulations,
it was impossible at this early date to issue regulations cover
ing all of the provisions of the Act.
For example, no regulations are prescribed under Part II
(sections 461-465) relating to the excess profits credit based
on income in connection with certain exchanges. It is also
recognized that the provisions of Regulations 130 will reauire
further development in certain other areas. Subsequent Treasury
decisions will be issued to supplement Regulations 130 in the
omitted or incomplete areas.
It is contemplated that these Treasury, decisions will be
published with the usual notice of rule making and public pro
cedure thereon, so that taxpayers will be afforded an opportunity
to submit comments and objections prior to final promulgation.
0 O0
Acting Secretary Foley said today that the impli
cation in the Kefauver Committee Report that the Bureau
of Internal Revenue was not making a real effort to
check on the income tax returns of known gamblers and
racketeers does not accord with the record*
The investigative force devoted to tax fraud work,
the Acting Secretary stated, has been more than tripled
in the last four years and the Bureau has been and is
constantly alert to all new developments in this area*
During 1950 the Intelligence Unit of the Bureau investi
gated 314 cases involving racketeers and gamblers.
This
constituted more than 12 percent of the
investigations carried on by that Unit*
These^investi-
gations turned up $24 million in additional taxes and
penalties which were proposed for assessment.
They also
resulted in 132 recommendations for criminal prosecution.
The record will show that just as effective results have
also been obtained during years prior to 1950.
treasury
d epar tm en t
IMMEDIATE RELEASE,
Friday, March 2 , 1951
S -2 6 1 2
Acting Secretary Foley said today that the implication
in the Kefauver Committee Report that the Bureau of Internal
Revenue was not making a real effort to check on the income
tax returns of known gamblers and racketeers does not accord
with the record.
The investigative force devoted to tax fraud work, the
Acting Secretary stated, has been more than tripled in the
last four years and the Bureau has been and is constantly
alert to all new developments in this area*
During 1950 the Intelligence Unit of the Bureau investi
gated 3 li| cases involving racketeers and gamblers. This
constituted more than 12 percent of the total number of
fraud investigations carried on by that Unit, These racket
eer and gambler investigations turned up $21* million in
additional taxes and penalties which were proposed for
assessment. They also resulted in 132 recommendations for
criminal prosecution. The record will show that just as
effective results have also been obtained during years
prior to 1950.
0O0
■m || m
ttm n m r n t m a W * t too* M ¡ t o m i to « P » » • » * * « % « * * « * «
masía?, 8« ä
m d feat fe» M i to*»* *t to» otarla« « d fe* effletoì
e W « r oonfe to «to »MXfelo «l torto M * m
M
*
1___I 0p»n for * porto«! of »tont too » tó s* tófeoogh feo Soewtory r tll w
MTV« fe» äfifitst! to Otoso fe» tosto r t «agr « a * wife*** «efeoo.
Mw Seeretoxr indieotod fest o Bf**toi offering of tori«» F «nd 8 toads»
or an offering otolfer to feo 2-1/2« ffeoswy tonto* îwwfewtt torto»
•*iU jjrtosMy to esto «mifefeto for ooofc otoaotiptton o t » fetor toto to*« it
appear» fest * i»««i few *®» " V ortot*
mmmw m m m m
i1
""-
JQfl. Ü H i W
ICilÄ&B
a«N*y#
I ;tV
gh# gs^i^torf to tt# freèira^f M m M M i t fttüf Ü Ä U#r# will b»
dttrnmâ îm J ItoáUá piâ#â S a**
*$$&&!§ 1isÿi€^ âii
iwwâm to êwm Iï 4mmI
sari«# to ïm &4***
Êm? ^lÿs^ülÂ^ *i**kfi% M0îê$èêM$
15# M U M ® # Ito étUil» to U & U i41I to
^œiÂifôêâ #s* ÊMt@à X9»
ttof^srtontoitilito iamaá i#figtoUM imm mû&$ *iU
a lia rli/* mà w&lX hm&
at ito rato of IM lAf P**'
#wl«s®ml 3^* ftof* alll m % to ttftäaffeAtöUp #r
» t o ilT f t o ü # i
m
M
P P 1^ *
sbUI#
p U r to
f l m m m m « l*U M » m m wUX to s i m m
® $ U m to i^föto^Uig U « * frtor to »«$&£$£ Ito m M
% m y f.üg:- Ufa»' to to
m KI*
fM»$*5r »tot
to Ito tolUito toPPUs*
ftomm ^^«rtoitoto S*&A$ tmmmtf tosatomllX to###s$Uhl# toptr
m â m m m d %m%mmm% M pspamt at Priant $ * U U #n4 Montone# U M
é m SëZ&mimg to# toato to Ito m
ttoar
f S to m u * t o A * to pr*
m m % to J U M A t o » # U m «
fin*
to tei» awr M W ttr to far ito » »
m i m i
to mmmmgin
u ratoto Uto» fetotoap to $m®vw0®% msiritis#
to atoar U Miniato# it e
to its# pU lto itoli Ifew i#
turn #f p ra s s i fatotoßg» to M m u s r r Iwtoi to 3p6 M t*
RELEASE MORNING NEWSPAPERS,
Sunday, March 4, 1951.
S-2613
The Secretary of the Treasury announced today that there
will he offered for a limited period a new investment series of
long-term non-marketable Treasury bonds in exchange for outstand
ing 2-1/2# Treasury bonds of June 15 and December 15, 1967 -72 ,
the details of which will be announced on March 1 9 .
The new bonds will be issued in registered form only, with
appropriate maturity, and will bear interest at the rate of
2-3/4# per annum payable semi-annually. They will not be trans
ferable or redeemable prior to maturity; however, owners of such
non-marketable bonds will be given an option of exchanging them
prior to maturity for marketable Treasury notes bearing terms
to be announced in the official offering.
The new non-marketable 2-3/4# Treasury bonds will be
acceptable at par and accrued interest in payment of Federal
estate and inheritance taxes due following the death of the owner.
They will not be acceptable in payment of Federal income taxes.
The offering of this new security is for the purpose of
encouraging long-term investors to retain their holdings of
Government securities, in order to minimize the monetization of
the public debt through liquidation of present holdings of the
Treasury bonds of 1967 -7 2 .
The Secretary stated that he planned to open the sub
scription books on Monday, March 26, and that the full terms of
the offering and the official circular would be made available
on March 1 9 . The subscription books will remain open for a
period of about two weeks, although the Secretary will reserve
the right to close the books at any time without notice.
The Secretary indicated that a special offering of Series F
and G bonds, or an offering similar to the 2-1/2# Treasury bonds,
Investment Series A-1965, will probably be made available for
cash subscription at a later date when it appears that a need
therefor may exist.
0 O0
JOINT ANNOUNCEMENT BY-THE SECRETARY, OF-THE. TREASURY
AND THE CHAIRMAN OF THE BOARD OF GOVERNORS, AND OF THE
FEDERAL OPEN MARKET COMMITTEE, OF THE FEDERAL RESERVE SYSTEM
r,
The Treasury and the Federal Reserve System have reached full
accord with respect to debt-management and monetary policies to be
pursued in furthering their common purpose to assure the successful
financing of the Government’s requirements and, at the same time,
to minimize monetization of the public debt*
302
JOINT ANNOUNCEMENT BY THE SECRETARY OF THE TREASURY
AND THE CHAIRMAN OF THE BOARD OF GOVERNORS AND OF THE
FEDERAL OPEN MARKET COMMITTEE, OF THE FEDERAL*RESERVE SYSTEM
RELEASE MORNING NEWSPAPERS,
Sunday, March 4, 19 5 1 ,_____
S-2614
The Treasury and the Federal Reserve System
have reached full accord with respect to debtmanagement and monetary policies to be pursued in
furthering their common purpose to assure the
successful financing of the Government's reauirements and, at the same time, to minimize monetization
of the public debt.
0O0
tut
RELEASE a i B O
Tuesday, March 6j. 1951»
o
/
^
/<
The Secretary of the Treaeury announced last evening that the tender« for
#1 #100,000*000* or thereabout», of 91-day Treasury bill« to be dated torch 8 and to
mature June 7, 1951, which were offered on March 1, were opened at the Federal
Reserve Banks on March 5*
The details of this issue are as followsj
Total applied for - $1,685,866,000
f d
Total accepted
- 1,100,^91,000 (includes $94,402,000 entered on a
non—competitive basis and accepted in
full at the average price shown below)
Average price
- 99.645 Equivalent rate of discount approx. 1-40« per annua
Range of accepted competitive bids:
- 99.655 Equivalent rate of discount approx. 1.365# per annua
_ 99.641 Equivalent rate of discount approx. 1.420# per annua
High
Low
(15 percent of the amount bid for at the low price was accepted)
Federal Reserve
District
Total
Applied for
Total
Accept«!
Boston
Mew fork
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
I
#
Total
15,195,000
1.262.525.000
19.421.000
47.746.000
8 , 513,000
13 .213.000
192,503,000
9 ,122,000
14,770,000
734.125.000
15.171.000
46.896.000
6.513.000
13.213.000
149.753.000
9.122.000
2,995,000
24.352.000
23.735.000
66.546,009
2,995,000
24.352.000
11.685.866.000
$1,100,691,000
23.735.000
58.046.000
TREASURY D E P A R T M E N T
Information Service
W ASHINGTON, D .C .
REIjEASE m o r n i n g n e w s p a p e r s ,
Tuesday, March 6 ,. 1951,
S-26I5
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 March 8 and to mature June 7* 1951* which were offered
on March 1, were opened at the Federal Reserve Banks on March 5The details of this issue are as follows:
Total applied for - $1,68$,866,000
Total accepted
- 1,100,691,000 (includes $94,402,000
entered on a non-competitive
basis and accepted in full
at the average price shown
below)
Average price
- 99.64$ Equivalent rate of discount approx.
l'.4o6$ per annum
Range of accepted competitive bids
- 99.6$$ Equivalent rate
1.365$
- 99.641 Equivalent rate
1.420$
High
Low
of discount approx.
pep annum
of discount approx.
per annum
(15 percent of the amount bid for at the low price was accepted)
Total
Accepted
Total
Applied for
Federal Reserve
District
Boston
New York
Philadelphia
$
Cleveland
Richmond
Atlanta
Chicago
III Louis
Minneapolis
Kansas City
Dallas
San Francisco
TOTAL
15,195,000
1 , 262 , 52$,000
19.421.000
47.746.000
8 ,513,000
13 .213.000
192 ,503,000
9 ,122,000
2,995,000
24.352.000
23.735.000
66.546.000
$ 1 , 6 8 5 , 866,000
0 O0
$
14,770,000
734.125.000
15,171,000
46.896.000
8 ,5 1 3 , 0 0 0
13.213.000
149.753.000
9 ,122,000
2 ,9 0 5 , 0 0 0
24.352.000
23.735.000
58.046.000
$1,100,691,000
Comparison
of
p rin c ip a l
item s
of
a s s e ts a n d lla b ilitie s
o fn a tio n a l' ‘
basics
—<
5one naxiea
( I n th.ou.saJ3.cLs of d o l l a r s )
Dec. 30,
Oct. U
1950
1950
LIABILITIES
Deposits of individuals, partner
ships, and corporations:
Deposits of U, S . Government.....
Postal savings deposits*.......
Deposits of States and political
Other deposits (certified and cash
iers * checks, etc.)...............
Total deposits........... ......
Bills payable, rediscounts, and other
liabilities for borrowed money....
Other liabilities................ •••
Total liabilities, excluding
capital accounts
CAPITAL ACCOUNTS
Capital stock:
Preferred....
Common.......
Total......
Surplus..........
Undivided profits
Reserves.•.......
Total surplus, profits, and
!T6 S 6 T Y 6 S # • # • • • • # ♦ • • • • •
Dec. 31,
X9U9
:Increase or decrease :Increase or decrease
:since Dec. 31. 19U9
:since Oct. U. 1950
iPercent
Amount
iPercent
Amount
6.82
.38
U .63
2.75
$4 ,699,053
55,572
- 122,520
2,771
9.92
.29
- 6 .0U
76.53
6.55
283,909
855,687
5.24
10.33
U10.8U2
6,185,314
3141
7 .U2
-24.o 6
5.21
69,082
351.870
913.54
36.92
5 .613 .661 .... 6.58
6 .606,266
7.84
$52,051,784
19 ,010,542
1.904,552
6,392
$“+8,729,481
18 ,938,109
1,820,282
6,221
$47 ,352,731
18 ,954,970
2 ,027,072
3,621
$3 ,322,303
5,707,19“+
9.135,365
5,356,478
7.976,705
5,423,285
8,279,678
350,716
1 ,158,660
1.713.S03
89,529,632
1.129.051
83!956!327
1.302.961
83,344,318
76 .6UU
100,922
1.30U.828
1.2U0.19U
7,562
952,958
90.911.10lj-
85.297.443
84.304.838
15,102
1.986.5^8
2.001.650
2 ,925,104
1 ,124,223
278.012
1*.327.339
6.328.989
Total capital accounts*•
Total liabilities and capital
97.2U0.093
accounts
Percent
RATIOS:
36.70
U.S.Gov*t securities to total asset s
30.ll
Loans and discounts to total assets
Capital accounts to total deposits
7.07
15,453
1.974.488
1.989.941
2,791,349 —
1,229,932
316.036
16,568
1.899,772
1.916.3UO
1 ,o 67,66U
310.897
4.337.317
6.327.258
U.018.001
5.934.341
91.624.701
Percent
90.239.179
Percent
U2.U1
39.08
29.65
7.54
26.52
7.12
72,433
84,270
171
14.53
584.752 __ 5} -li6*d 4
5,573,305
-24,278
64.634
-35I
12.060
11.709
133,755
-105,709
-38.02Û
-9.978
1.731 .
5.615.392
-2.27
.6l
, -59 .____
4.79
-8.59
-12.03
-1,466
-8.85
86.776
4.4i
«3,31010*82
285,664
5.30
56,559
-32.885 „ -10.58
-.23 ____ 309,328
394.648
.03
6.13
7.000.914
NOTE : Minus sign denotes decrease
m
.
7.76
Statement sh o w i n g c o m p a r i s o n of p r i n c i p a l items of assets and. liabilities of active n a t i o n a l tanks
as of D e c e m b e r JO, T.9JO, O c t o b e r h, 1950» suacL D e c e m b e r 3 1 » 1949
(In thousands of dollars)
Dec. 30, s
1950
:
4
Number of banks......................
4,965
ASSETS
fiftinmAT’ftlftl and indnfitrifll 1 cans....... $13 ,401,912
6,978,221
Loans on rAp1 ^st, &..................
OonSUmev lo^u® tn Individnala........
5 ,668,963
3 .616.505
All other loans, including overdrafts.
*Pntal gross IoAnfl ..................
29,6657601
388.121
Less valuation reserves........
29
.
277.U8O
Net loans...................
U. S. Government securities:
Direct obligations..... ........... 35.687,933
3.627
Obligations fully guaranteed......
35.691.560
Total U. S. securities.........
Obligations of States and political
if,637,*8
subd ivisions........ ...............
2,468,442
Other bonds, notes, and debentures....
Corporate stocks, including stocks
of federal Reserve banks...........
175.573
k3.022.623
Total securities........... .
Total loans and securities......
72.300.103
finTraincv an1*! r.ndn....................
i t w t w
Reserve with federal Reserve banks.... 1 1 ,420,505
1 1 ,245.861
Balances with other banks............
Total cash, balances with other
banks, including reserve balances
and cash items in process of
collection.
23.813.U35
Other assets.........................
1.126.555
Total assets.....................
97,240,093
Oct. 4,
1950
4.975
$11,927,538
6,708,572
5,584,702
3.291.226
27,512,038
3U3.977
27 .168.061
! Deo. 31,
:
1949
:Increase or decrease: Increase or decrease
:since Oct. 4. 1950 :since Dec. 31. 1949
:Percent
: Amount
{Percent: Amount
-10
-.20
-l6
-.32
$10 ,389,226
5,9^7,732
4,452,S42
3,450,082
24,239,882
3ll,589_
23.928.293
$1 ,474,374
269,649
84,261
12.36
$3 ,012,686
1,030,489
1 ,216,121
166,423
5 ,425,719
76,532
5.3ft9,l87
29.00
4,981
4.02
1.51
9.88
325.279
7.83
z' w h
12.83
2 ,109,419.. 7.76
35,806,312
3.588
35.809.900
38,268,473
2.050
-118,379
38.270.523
-118,3^0
¥,567,337
2,370,173
3,747,200
2,023,542
119,711
178.578
42.925.988
7o !w
!o 49
1,164,852
-.33
1.09
-.33
2.62
98,269
4.15
-3.005
96,635
2 ,206,05ft
-17,783
618,172
2.798.944
-1.68
.23
10,802,333
8.446.917
166.485
44,2071750
68,1 3 6 $ 3
1 ,059,663
10,757,111
9.228.184
-1.53
5.72
33.14
20.414.102
1 .116.550
21,044.958
1.058.178
3.399.333,
16.65
91 ,624,701
90.239,179
10,005
5 ,615.392
17.33
27.31
4.82
22.38
, 2ft-51
22.36
- 6.74
1,577 ■ 76-93
-2 .578.963
- 6 .7ft
-2,580,540
939,848
444,900
9,088
-1.1851127
4.164 ,060
87,4o 6
25.08
21.99
5.46
-2.6 s
663,394
2 ,017.677
6.11
8.25
6.17
21.86
.90
2 .768.477
68,377
~TM
6.13
7,000,914
7.76
13.16
2
loans, including loans to farmers, to 'brokers and dealers and others for the
purpose of purchasing and carrying securities, and to hanks, etc«, amounted to
$ 3 ,6 l 6 ,000,OCX), an increase of 10 percent since the October call*
of loans and discounts to total assets on December p *
The percentage
1950 was 3 0 * H >
conparison
with 2 9 . 6 5 on October k and 2 6 . 5 2 in December 19^9*
Investments of the banks in United States Government obligations (including
$3,600,000 guaranteed obligations) on December 30, 195° aggregated $35*692,000,000,
which was a small decrease since October, but a decrease of more than 6 percent in
the year*
These investments were nearly 37 percent of total assets, compared to
U2 percent a year ago.
Other bonds, stocks and securities of $7>33 1 >0°0,000, which
included obligations of States and political subdivisions of $*+,687,000,000, were
$215,000,000, or 3 percent, more than in October, and $1,39^*000,000, or 2 3 percent,!
more than held at the end of the previous year.
The total of securities held
amounting to $*+3,000,000,000 was slightly above the figure reported for October, butj
wets
nearly 3 percent less than the amount held at the end of December 19^9*
Cash of $1,1^7,000,000, reserves with federal Reserve banks of $1 1 ,*+21,000,000
and balances with other banks (including cash items in process of collection) of
$ 1 1 ,21+6 ,0 0 0 ,0 0 0 , a total of $ 2 3 ,8 1 *+,0 0 0 ,0 0 0 , showed an increase of $ 3 ,3 9 9 ,000,000
since October.
The unimpaired capital stock of the banks on December 30, 1950 was
$2,002,000,000, including $15,000,000 of preferred stock.
Surplus was
$ 2 ,9 2 5 ,0 0 0 ,0 0 0 , undivided profits $1 ,1 2 *+,0 0 0 ,0 0 0 and capital reserves $2 7 3 ,000 ,000,
or a total of $*+,327,000,000.
Total capital accounts of $6,329,000,000, which were
7 .O7 percent of total deposits, were nearly $2,000,000 more than in October when
they were 7 *5 ^ percent of total deposits.
TREASURY DEPARTMENT
Washington, D.C.
Press Service
No,
RELEASE MORNING NEWSPAPERS
C
ThC total
MM
c2_ G
/
-
assets of national hanks on December 3°» 3.95° amounted to more than
$97,000,000,000, an all-time high, it was announced today by Comptroller of the
Currency Preston Delano.
The returns covered the 4,965 active national banks in
the United States and possessions.
The assets were more than $5,000,000,000 over
the amount reported by the 4,975 active national banks on October 4, 195^» the
date of the previous call, and were $7 ,0 0 0 ,0 0 0 ,0 0 0 greater than the total reported
by the 4,981 active banks as of December 3 1 , 1949«
The deposits of the banks at the end of December 1950 were nearly $90 ,000,000,Od
an increase of over $5,000,000,000 since October, and exceeded by $6,000,000,000 the]
amount reported at the end of the previous year.
Included in the recent deposit
figures were demand deposits of individuals, partnerships and corporations of
I
$52,052,000,000, which increased $3,300,000,000, or nearly 7 percent, since October,
and time deposits of individuals, partnerships and corporations of $1 9 *0 1 1 ,000 ,000,1
which were slightly in excess of the amount held in October.
Deposits of the United
States Government of $1,905,000,000 were up $84,000,000, or nearly 5 percent, since
October; deposits of States and political subdivisions of $5,707,000,000 showed an
increase of $ 3 5 1 ,0 0 0 ,0 0 0 ; and deposits of banks amounting to $9 ,1 3 5 ,0 0 0 ,0 0 0 were up
$1,159,000,000, or nearly 15 percent, since October.
Postal savings deposits were
$ 6 ,0 0 0 ,0 0 0 and certified and cashiers 1 checks were $1,714,000,000.
Net loans and discounts at the end of December 1950 w ®?8 $ 2 9 ,2 7 7 ,0 0 0 ,000 ,
another all-time
high.
______
They
or nearly
-__ were
-- $2,109,000,000,
I
Y a8 ppercent, above the
October f i g u re^and $5,349,000,000, or 22 percent, abofe the amountr reported at the
end of 1949.
Commercial and industrial loans as of the recent call date totaled
$13,402,000,000, up 12 percent over the amount three months previous.
Loans on
real estate of $ 6 ,9 7 8 ,0 0 0 ,0 0 0 were up 4 percent in the period; consumer loaas to
individuals of $ 5 ,6 6 9 ,0 0 0 ,0 0 0 showed an increase of nearly 2 percent, while all othj
treasury
d epar tm en t
Information Service
WASHING
Q
O
release m o r n i n g n e w s p a p e r s ,
Thursday, March 8 , 1951»___
S-26l6
The total assets of national banks on December 30, 1950
amounted to more than $97 *000,000,000, an all-time high, it was
announced today by Comptroller of the Currency Preston Delano.
The returns covered the 4,965 active national banks in the
United States and possessions. The assets were more than
$5 ,000,000,000 over the amount reported by the 4,975 active
national banks on October 4, 1950* the date of the previous call,
and were $7 *000,000,000 greater than the total reported by the
4,981 active- banks as of December 31* 1949*
The deposits of the banks at the end.' of, December 1950 were
nearly $90,000,000,000, an increase of over $5 *000,000,000 since
October, and exceeded by $6,000,000,000 the amount reported at
the end of the previous year. Included in the recent deposit
figures were demand deposits of individuals, partnerships and
corporations of $52 ,052,000,000, which increased $3 ,300,000,000,
or nearly 7 percent, since October, and time deposits of in
dividuals, partnerships and corporations of $ 19 ,0 11 ,000,000,
which were slightly in excess of the amount held in October.
Deposits of the United States Government of $1,905,000,000 were
up $84,000,000, or nearly 5 percent, since October; deposits of
States and political subdivisions of $5,707*000,000 showed an
increase of $351 *000,000* and deposits of banks amounting to
$9*135 *000,000 were up $ 1 ,159 *000,000, or nearly 15 percent,
since October. Postal savings deposits were $6,000,000 and
certified and cashiers’ checks were $1,714,000,000.
Net loans and discounts at the end of December 1950 were
$29,277,000,000, another all-time high. They were $2,109*000,000,
or nearly 8 percent, above the October figure, $4,606,000,000,
or 18 .7$ above the June 30 figure, and $5*349*000,000, or 22
percent, above the amount reported at the end of 1949. Commercial
and industrial loans as of the recent call date totaled
$13,402,000,000, up 12 percent over the amount three months
previous. Loans on real estate of $6,978,000,000 were up 4 percent
in the period- consumer loans to individuals of $5 ,669 *000,000
showed an increase of nearly 2 percent, while all other loans,
including loans to farmers, to brokers and dealers and others
310
~
2
-
for the p u r p o s e of p u r c h a s i n g and c a r r y i n g securities, and to
banks, etc., a m o u n t e d to $ 3 * 6 1 6 , 0 0 0 , 0 0 0 , a n i n c r e a s e of 10 p e r c e n t
since the O c t o b e r call.
The p e r c e n t a g e of loans and d i s c o u n t s
to total a s sets on D e c e m b e r 3 0 , I 9 6 0 was 3 0 .1 1 , in c o m p a r i s o n
with 29.65 o n O c t o b e r 4 a nd 2 6 . 5 2 in D e c e m b e r 1 9 ^ 9 *
I n v e s t m e n t s of the b a n k s in U n i t e d States G o v e r n m e n t
obligations ( i n c l u d i n g $ 3 ,600,000 g u a r a n t e e d o b l i g a t i o n s ) on
December 3 0 , 1 9 5 0 a g g r e g a t e d $ 3 5 ,6 9 2 , 0 0 0 , 0 0 0 , w h i c h was a small
decrease since October, but a d e c r e a s e of mor e t h a n 6 p e r c e n t in
the year.
These i n v e s t m e n t s w ere n e a r l y 3 7 p e r c e n t of total
assets, c o m p a r e d to 4 2 p e r c e n t a y e a r ago.
O t h e r bonds, stocks
and securities of $7 ,331 ,000,000, w h i c h i n c l u d e d o b l i g a t i o n s of
States and p o l i t i c a l s u b d i v i s i o n s of $ 4 ,6 8 7 , 0 0 0 , 0 0 0 , were
$2 1 5 ,0 0 0 , 0 0 0 , or 3 percent, mor e t h a n in October, and
$1 ,394,000,000, or 23 percent, m o r e tha n h e l d at the end of the
previous year.
The total of secu r i t i e s h e l d a m o u n t i n g to
$43,000,000,000 was s l i g h t l y a b ove the figure r e p o r t e d for
October, bu t was n e a r l y 3 p e r c e n t less t h a n the a m o u n t h e l d at
the end of D e c e m b e r 1 9 4 9 .
Cash of $ 1 , 1 4 7 , 0 0 0 , 0 0 0 , r e s e r v e s w i t h F e d e r a l D e s e r v e b a n k s
of $ 1 1 ,4 2 1 , 0 0 0 , 0 0 0 a nd b a l a n c e s w i t h o t her banks ( i n c l u d i n g cash
items in p r o c e s s of collection) of $ 1 1 ,2 4 6 ,0 0 0 ,0 0 0 , a t o t a l of
$2 3 ,8 1 4 ,0 0 0 , 0 0 0 , s h o w e d a n i n c r e a s e of $ 3 , 3 9 9 , 0 0 0 , 0 0 0 since
October.
The unimpaired capital stock of the banks on December 3Q,
1950 was $2 ,002,000,000, including $ 1 5 ,000,000 of preferred
stock. Surplus was $2,925,000,000, undivided profits $1,124,000,000
and capital reserves $278 ,000,000, or a total of $4,327,000,002*
Total capital accounts of $6,329,000,000, which were 7.07 percent
of total deposits, were nearly $2,000,000 more than in October
when they were 7-54 percent of total deposits.
Statement; showing
comparison of principal items of assets and liabilities of active national banks
as of December 30, 19^0, October L, 19^0, and December 31, 19U9
3#
(In thousands of dollars)
•
•
•
Dec. 30,
1950
U,965
ASSETS
Commercial and industrial loans«•••••
Consumer loans to individuals
All other loans, including overdrafts.
Total gross loans......•••.•••••••
Less valuation reserves........
Net loans.
TJ. S. Government securities;
Obligations fully 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.....................
.
.
Oct. i
\.y :
1950
:
5,975
Dec. 31,
1959
5,981
$13,501,912 #11 ,927,538 $10,389,226
6,978,221
5,957,732
6 ,708,572
5,552,852
5,585,702
5,668,963
3,550,082
3,291,226
3,616,505
25,239,882
“T ^ 3 7 5 o r
27,512,038
388,121
311,589
353,977
“ 2972777555" 27,i68,o6r .23,928,293'
35,687,933
3,627
35,691,560
U,687,oi*8
2,i*68,UU2
35,806,312
38,268,573
3,588
2,050
35,809,900 ""38,270,523
5,567,337
2,370,173
3,757,200
2,023,552
178,578
166,585
175,573
1*2,925,988
55,207,750
53,022,623
72,300,103 ' TÒ,"Ò9ir705?" ""687136,'053"
1,059,663
1,157,069 171557552"
10,802,333
10,757,111
11,520,505
11,255,861
9,228,185
8,556,917
23,813,535
1,126,555
20,kilt,102
1,116,550
97,250,093
91,625,703
:Increase
:since Oct. U* 1950 :since Dec0 31, 1959
:Pere ent
• Amount
:Percent : Amount
-10
-.20
-16
-•32
$1 ,575,375
12.36
5.02
1.51
9.88
7.83
12.83
' 7.76
$3,012,686
1,030>U89
1,216,121
165,U23
5 ,525,719
29.00
17.33
27.31
76,532
■ 5 ,359,187"
5.82
22.38
2U.56
22.36
269,659
85,261
325,279
"1,153,563
55,151*
2,109,519
-118,379
39
-II8,3U0*
-.33
1.09
-o33
-2,58o ,55o
1,577
-2 ,578,963
-6.75
76.93
-6.7U
119,711
2.62
5.15
939,8U8
Wi,900
25.08
21.99
-1.68
9,088
-1 ,165,127
U,16U,060
5.56
-2.68
òolX
'8.25
6.17
21.86
98,269
-3,005
96,635
2,2b6,05U
3.15
17 7 5 5 5
2,798,955
-1.35"
5.72
33.15
663,395
2,017,677
21,01*5,958
1,058,178
3,399,333
10,005
16.65
.90
2,768,577
68,377
13.16
90,239,179
5,615,392
6.13
7,000,915
7.76
618,172
6.1*6
CO
Comparison
items
of
o f assets and. liabilities
of national "banks
continued
(In "thousands o f d o l l a r s )
•
•
•
Dec. 30,
1950
:
s
Oct. 1*,
1950
:
t
Dec. 31,
191*9
:Increase or decrease ;Increase or decrease
:since Oct. 1*, 1950 :since Dec«, 31, *19k9
: Amount
:Percent : Amount
:Percent
LIABILITIES
Deposits of individuals, partner
ships, and corporations:
Demand.......................... $52,051,781* $1*8,729,1*81 $1*7,352,731
$3,322,303
6.82
$1*,699,053
55,572
.38
18,938,109
18, 951*, 970
72,1*33
19,010,51*2
-122,520
1,820,282
81*,270
2,027,072
Deposits of U. S* Government.........
It.63
1 ,901*,552
3,621
6,221
6,392
2,771
171
Postal savings deposits..............
2.75
Deposits of States and political
5,356,1*78
350,716
283,909
6.55
5,1*23,285
5 ,707,191*
1,158,660
8,279,678
855,687
7,976,705
lit.53
9,135,365
Deposits of bank$.........
Other deposits (certified and cash
1*10,81*2
1,302,961
51.79
581*, 752
1,129,051
1,713,803
iers ’ checks, etc
'09,529702"
6.6L
83,31*1*,318
5,573,305
6,185,311*
83,956,327
Total deposits.
Bills payable, rediscounts, and other
- 2k .06
69,082
7,562
-21*, 278
liabilities for borrowed money.....
100,922
351,870
5.21
952,958
61*,631*
1,21*0,191*
Other liabilities.
l,30ij, 828
Total liabilities, excluding
6,606,266
81*,301*, 838
5,613,661
6.58
capital accounts*............. 90,911,10k
85,297,1*1*3
CAPITAL / C COUNTS
Capital stock:
-1,1*66
19,102
16,568
-2.27
P r e f e r r e d . . . « . o
15,1*53
-351
86,776
12,060
1,971*,1*88
.61
l,986,5k8
1,899,772
Common............................
85,310
2,001,690
13,709
" 1,989,91*1' “ 1,916,3L0
T otal..........................
" 2,639,1*1.0
285,661*
~TÜW
“ 1337755"
2,79l,3k9
Surplus.................
c .... *«
1,067,661*
56,559
-105,709
1,229,932
-8.59
1 ,12k , 223
Undivided profits.
-38,02)*
316,036
-12.03
-32,885
278,012
310,897
Reserv0s•••
Total surplus, profits, and
309,338
-9,978
k,018,001
-.23
1*,337,317
reserves •••••••••••«•*..... ..
ti,327*339
5,93"i*733*r
39l*,6i*8
6,327,288
6,328,789
~
T
l,?3'i
Total capital accounts..........
Total liabilities and capital
5 ,615,392
91,621*,701
6.13
7,000,911*
90,239,179
accounts.••••••••••«..... .... 97,21*0,093
Percent
Percent
Percent
RATIOS:
39.08
U.S.Gov’t securities to total assets
k2ekl
36.70
NOTE: Minus sign denotes decrease
26.52
30. U
29.65
Loans and discounts to total assets
7.12
Capital accounts to total deposits
7.07
7.51*
9.92
.29
-6.01*
76.53
5.21*
10.33
31.53
~TH2
913.51*
36.92
7.81*
-8.85
¡*.57
k.k5
10.82
5.30
-10.58
7.70
6.65
7.76
CO
►—*
ro
f r o m shippers in third countries as to the absence of a poet*
ffreesing China»» interest will not be regarded as sufficient proof*
the Treasury suggests that importers apply for Treasury licenses
prior to opening letters of credit or paying for merchandise of
Chinese origin«
the Instructions sent Custosss collectors apply to importation of
goods of north Korean origin in the sane maimer as they apply to
Chinese (except Formosan) merchandise*
EFRains tiof 3/2/51
?u»
*T7
a
B » Secretary of toe freaatury todas íssoad
/
*•
Collectors of Cuetos* on •nforeeaant of «*# Foreign Asoefcs Control
against imlicensed iBpartotlon of Chin«» merchandiee.
Collector* ere dirocted net to aecept or allow certein classes
of CuBttwai «itrios, totodurasmle and transiera vito rogard «o
»«t e d i a ® of Chinóse erigía toportad firwa « y eowatry after mreh 7,
1951, l i l i Foreign Aaseta Ccntrol liee-.sea aro preeented. Ptoeedure.
gereming such licensea are oufclined to tí» taafcructiona» 'rttissh are
egaU i M úto Ssction 500.806 of toe Foreign ¿ásete Control Síegulations.
yus.Treaeury, to general,deilee applicaticns f w ejieoifi* lieaneee
te toport ntrehandlae to totoh a Chinea* totareat ha» «ttoted atoo»
17 , 1950, th* date of tí» "ftoemtog» order affecttog China
(«xeept Fomoaa). EStceptione nay b» eado toara ■wehandto* is of
eufflciont importan» to tola eoantry to aarrant it* adalttance not«ithstaadtog any Chinea* totere*t. The Departo*«ts of Detona* and
Comaerce are advislng to* Treasury Department alto regard to toat
merehandiae tsay ftOl toto tola category.
It to toa Treaeury»* preaiasption toat to*re has bean a Chínese
toterest ateo* Decemher 17» 1550 to any goods of Chinea* origin not
lmported toto to* United State* by Sfcrch 7. To overo««* to*
prasuaptioR, it mili be necees&ry to preswit to th* Federal Reserve
Baidc of üew lo** apaeifto and «utaetantial evldanee traetog all detalla
of
and interest to gooda offered for toportaticn. iffldavita
RELEASE M O R N I N G NEWSPAPERS,
Wednesday, M a r ch 7, 1 9 5 1 .
S -2 6 1 7
S e c r e t a r y of the T r e a s u r y today issu e d i n s t r u c t i o n s to
Collectors of Customs on e n f o r c e m e n t of the F o r e i g n A.ssets C o n t r o l
Regulations a g a i n s t u n l i c e n s e d i m p o r t a t i o n of Chinese m e r c h a n d i s e .
C o l l e c t o r s are d i r e c t e d not to a c c e p t or a l l o w c e r t a i n classes
of Customs entries, w i t h d r a w a l s and transfers w i t h r e g a r d to
merchandise of Chinese o r i g i n im p o r t e d from a n y c o u n t r y a f t e r
March 7* 1 9 5 1 * unless F o r e i g n A s s e t s C o n t r o l licenses are
presented.
P r o c e d u r e s g o v e r n i n g such licenses are o u t l i n e d in
the instructions, w h i c h are c o n t a i n e d in S e c t i o n 5 0 0 808 of the
Foreign A s s e t s C o n t r o l R e g u l a t i o n s .
The Treasury, in general, d e nies a p p l i c a t i o n s for specific
licenses to import m e r c h a n d i s e in w h i c h a Chinese i n t e r e s t has
s-ln c ® D e c e m b e r 1 7 * 1 9 5 0 ,the date of the "freezing" o r der
affecting China (except F o r m o s a ) . E x c e p t i o n s m a y be m a d e where
merchandise is oi s u f f i c i e n t i m p o r t a n c e to this c o u n t r y to w a r r a n t
its a d m i t t a n c e n o t w i t h s t a n d i n g a n y Chinese interest.
The
Departments of D e f e n s e and Commerce are a d v i s i n g the T r e a s u r y
Department w i t h r e g a r d to wha t m e r c h a n d i s e m a y fall Into this
category.
It is the T r e a s u r y ' s p r e s u m p t i o n that there has b e e n a
Chinese i n t e r e s t since D e c e m b e r 17, 1 9 5 0 in a n y goods of Chinese
origin not i m p o r t e d into the U n i t e d States b y M a r c h 7.
To o v e r
come the presu m p t i o n , it w i l l be n e c e s s a r y to p r e s e n t to the
Federal R e s e r v e B a n k of N e w Y o r k s p e c i f i c and s u b s t a n t i a l ev i d e n c e
tracing all d e t a i l s of o w n e r s h i p and i n t e r e s t in goods o f f ered
for importation.
A f f i d a v i t s from shippers in third countries as
to the a b s e n c e of a p o s t - f r e e z i n g Chinese i n t e r e s t w i l l not be
regarded as suff i c i e n t proof.
j.he T r e a s u r y suggests that i m p o r t e r s a p p l y for T r e a s u r y
licenses p r i o r to o p e n i n g letters of credit or paying for
merchandise of Chinese origin.
The i n s t r u c t i o n s sent Customs coll e c t o r s a p p l y to i m p o r t a t i o n
3 ° t /No rth K o r e a n o r i g i n in the same m a n n e r as they a p p l y
to Chinese (except F o r m o s a n ) m e r c h a n d i s e .
0O0
-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 ii2 and 117 (a) (1) of the Internal Revenue Code,
as amended by Section 115> of the Revenue Act of 19lil, 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. 1*18, 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 -
xm
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 vihich 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 vrhole or in part, and his action in any such respect shall
be final.
Subject to these reservations, non-competitive tenders for .,200,0%
or less without stated price fpom any one bidder Tfill 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
March 3^19gl
^
or other M e d i ately avail
able funds or in a like face amount of Treasury bills maturing
Cash and exchange tenders will receive equal treatment.
I
March l5^^ k J I
Cash adjustments mil j I
made for differences between the par value of maturing bills accepted in exchangB
and the issue price of the new bills.
The income derived from Treasury bills, whether interest or gain from the I
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 havo ad
special treatment, as such, under the Internal Revenue Code, or laws amendatory I
or supplementary thereto.
gift
The bills shall be subject to estate, inheritance, I
or other excise taxes, whether Federal or State, but shall be exempt
all taxation now or hereafter imposed on the principal or interest thereof
j
V
J2 3 3 M Z
TREASURY DEPARTMENT
Wa&hingfofln
Û
U
Ç
M l RELEASE, HORNING NEWSPAPERS,
Thursday. March 8. 1951____
Tho Secretary of the Treasury, by this public notice, invites tenders for
g 1,000,000,000 , or thereabouts, of
gl
T11v ‘
..
-day Treasury bills, for cash and
fSw
March
in exchange for Treasury bills maturing
1 ^ 1951----- > to b3 lssucd on
a discount basis under competitive and non-competitive bidding as hereinafter
provided.
The bills of this series will be dated __ Marchl^JlSS]----- .» and
will mature
interest.
Jane lit. :1951_____> lvhcn the faoe amount Tii11 be payabls vathout
They will be issued in bearer form only, and in denominations of
§1,000, $5,000, §10,0-00, $100,000, §
5 0
0
,
0
0 0
, and §1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the
closing hour, two o'clock p.m., Eastern Standard time, Monday, Ma^h_12, 192-'
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 e^ressed on the basis of 100, with not more than thrcej
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
Information
d epar tm en t
Service
W ASHINGTON, D .C .
31 q
RELEASE m o r n i n g n e w s p a p e r s ,
Thursday, March 8 , 19-51 •
S-26l8
The Secretary of the Treasury, by this public notice, invites
tenders for $1,000,000,000, or thereabouts, of 91-day Treasury
bills, for cash and in exchange for Treasury bills maturing
March 15, 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 March 15, 1951, and will mature June 14,
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, March 12, 1951. 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 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. 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 oh
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
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 March 15> 1951, in cash or
other immediately available funds or in a like face amount of
Treasury bills maturing March 15, 1951* 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 o,f the
possessions, of the United .States, or by. any local taxing authority.
For purposes- of. taxation the amount of discount at which.' Treasury
bills-are originally sold, by the United States shall be considered
to be interest. Under Sections k2 and 11? (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,pot be considered to accrue until such bills shall be sold,
redeemed or otherwise disposed of, and such bills are excluded
from consideration as capital assets. Accordingly, the owner of
Treasury, bills (other than life insurance companies) issued
hereunder need include in his income tax return only the^ difference
between the price paid for such bills, whether on original issue
or on subsequent purchase, and the amount actually received-either
upon sale or- redemption at maturity during the taxable year for
which, the return is made, as ordinary gain or loss .
' -k
.
•
i ' Treasury Department Circular No. 4-18, 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.
. ,s
oOo
TR E A S U R Y DEPARTMENT
f i s c a l S e r v ic e
STATUTORY DEBT LIMITATION
AS OF 'J®iiSKXJSiLJfflS 1
Section a
Washington, ...l®X»„...5 a.JL.951
of Secoud Liberty fond Act, as »»ended, provide th»t the 'ace arem* cf *l«a t i ou s tssued
under authority of that Act, and the face amount, of obligations Puararteed as to
” * 1 "T? g ^
tinited States.(except such fluararteed obligations as may be held by the Secret«? o. the Tr*
exceed in. the »««rebate *37S,CCO,CCO,COO (Act of June 26, 19461 U.S.C., title cl, sec. ■*•»), cutstand«« at
any one tire. For purposes of this section the current redemption value of any obcibation issued on a discern
b a L which is redeemable prior to returity at the option of the holder shall be considered as its face areurt.The followi*? table shows the face amount of obligations outstanding m d the face amount which can still
be issued under this limitation:
10
*
*
$ 2 7 5 ,0 0 0 ,0 0 0 ,0 0 0
Total face amount that may be outstanding at any ore time
Outstanding
Obligations issued under Second Liberty Bond Act, as amended
Interest—bear in?:
A 1 3 , 6 3 1 ,6 ^ 3 , 0 0 0
•Treasury bills ......... -........ "
*
^
'
Certificates o f .indebtedness ------
«j2-hi2.OTO.6oat; 66,163,693,600
Treasury notes ---------- -— *—
Bonds Treasury------..------------ ---Savings .(current redemp* value}-..
9^,03^,718,300
5 7 , 7 6 9 ,3 8 ^ . 3 7 8
2 9 3 , 6 0 1 ,5 0 0
Depoe itary------------------—
Armed Forces leave — „---- -— .....—
Investment series..— „..— ..........— -
7 7 , 7 8 9 ,9 7 5
108 Wh9 1 5 3
0 5 2 . 0 5 5 .0 0 0 1 5 3 . 1 2 8 . ^ , 1 5 3
Special Funds —
19,6te,i465.000
Certificates of indebtedness----3 3 . 0 3 3 .3 5 1 . 0 0 0
Treasury ro te s--------- ----------------1 4 - ,2 9 0 ,8 8 6 ,0 0 0
Total interest-bear in ? — --------- --------------*------ ----OJ? »
iJJ
6
9
7
,
7
8
5
.2
33
Matured, interest-ceased — ... - — ----- -----Bearin? no interest:
War savin?8 stamps -------- ----— --------Excess profits tax refund bonds...........
Special notes of the United States;......
Intern at *1 Monetary Fund se rie s-----
W.Ollf.378
2 ,6 9 2 ,9 0 1
1 .2 7 0 .0 0 0 .0 0 0
Guaranteed obligation (not held by Treasury);
Interest-bearing:
Debentures: F’.H.A. —......------- — — Demand obligations: C.C.C*--------------- — *
Matured, interest-ceased-----,.-------- -—---------
1 .3 2 0 .7 0 7 .2 7 9
2 5 5 .2 4 - 3 . 986,265
15,310,^36
1 4 6 .0 6 ?
1 5 .^ 56,503
2 .0 5 0 .3 7 5
1 7 .5 1 5 .8 7 8
2i£l26li502jäJ
Grand tot al out,st anding — „----------------------------------------------—*1Q. 7 3 8 . &971857_|
Balance face amourt of obligations issuable under above authority----- ------ -------- ----------------- 7%[ i
Reconcilement with Statement of the Public Debt - F e b ru a ry 2 8 , 1 9 5 1
(Daily Statement of the United States Treasury, Maxell
1» 195*-)
Outstanding ..255» 9^0,679*25^
Total gross public debt ---------------------- ------------- —- -----------------------------------"
5X5«87§-|
Guaranteed obligations not owned by the Treasury
-------------- ------------- --------------- *
958,195*132
Total tfress public debt and tfuararteed obliBatiocs-----_ _ — — — ------------- ^
Deduct - other outstffidiitf pviblic debt obligations rot subject to debt lim itation------------
X
U
?
STATUTORY DEBT LIMITATION
AS OF FEBRUARY 28, 1951
March 8, 1951
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 obliga
tions 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, 194-6$ U*S<>Co, title 31,
soco 757b), outstanding at any one time® For purposes of this section the current
redemption value of any obligation issued on a discount basis which is redeemable
prior to maturity at the option of the holder shall be considered as its face amount«“
The following table shows the face amount of obligations outstanding and the
face amount which can still be issued under this limitation;
Total face amount that may be outstanding at any one time
Outstanding
$275,000,000,000
Obligations issued under Second Liberty Bond Act, as amended
Interest-bearing:
Treasury billsooosooootoooossoo^ 13,631,643,000
Certificates of indebtedness«*«
Treasury notes ***««*«* *«*««««* « 52.532,050,600 $66,163,693,600
Bonds Treasury o«Qoo««o*9soo*o««oaoo 94-,034-,718, 300
Savings (current redemp* value) 57,769,384,378
Depositary o»ooooooooooooooooo
293,601,500
Armed Forces Leave«®®®«*®®«®®
77,789,975
Investment series***««*«««*«®__
952.955.000 153,128,449,153
Special Funds Certificates of indebtedness« 19,642,465,000
Treasury notes««*«*««««««««®«_ 14,290,886,000 33,933,351,000
Total interest-bearing«oo**o**®«ooo«oo,o«oo 253,225,493,753
Matured, interest-ceased««««««««* ** 0«*««0«««««««««®
697,785,233
Searing no interest:
far savings stamps«««®«*«*«««««««
4.8,014,378
Excess profits tax refund bondsoe
2,692,901
Special notes of the United States;
Intemat »1 Monetary Fund series
1,270,000,000
1,320,707,279
Total„o«0000«00®00®000030000 ***00*00000«00000000000 255,243,986,265
Guaranteed obligations (not held by Treasury);
Interest-bearing:
Debentures: F«H«A« ««oo«*«*«**«*
15,310,436
Demand obligations: C0C0C0 o**«®
146,067
15,456,503
Matured, interest-ceased*,««*«««««*
2,059,375
n , . ,
17,515,878
brand total outstanding®®«®«*«®®«««
255.261.502.143
Balance face amount of obligations issuable under above authority,00 19.738.497.857
Reconcilement with Statement of the Public Debt - February 28, 1951
(Daily Statement of the United States Treasury, 15arch 1, 1951)
Outstanding Total gross publi c debt« «0 »*« ®«® * ® ,^4®® * a*00*«®«* *««* o»«0 **0®o*o*255, 940,679,254
Guaranteed obligations not owned by the Treasury*«»«««««««««««««»««
17.515.878
Total gross public debt and guaranteed obligations ***«•>«*«« „««.,« *« *255,958,195,132
ctuct - other outstanding public debt obligations not subject to
debt limitation* ooo oo
O O O d O O O d O O O O O O O d O O C O O O O O O O O O O O O O O O
696.692.989
S—2619
255,261,502,143
treasury department
DOR IMMEDIATE RELEASE
THURSDAY, MARCH 8, 1951
In response to numerous inquiries, the Secretary of the Treasury
announced today that the new investment series of 2-3/!$ Treasury bonds
which will be offered March 26, 1951, ih exchange for outstanding 2-l/2$
Treasury bonds of June
15
and December
15,
1967—72* will be dated April 1,
1951, will mature on April 1, 1980 and be callable on April 1, 1975.
The
bonds will be non-marketable and non-transferable, but will be exchangeable
into marketable 5 year l-l/2$ Treasury notes.
The notes offered in exchange
will be dated April 1 and October 1 of each year with appropriate interest
*
adjustments to dates of exchange. Interest on such bonds and notes will
be payable semi-annually on the 1st days of April and October in each year.
treasury
Information
d epar tm en t
Service
W ASHINGTON, D
IMMEDIATE RELEASE,
Thursday, March 8, 1951.
S-2620
In response to numerous inquiries, the Secretary
of the Treasury announced today that the new invest
ment series of 2-3/4$ Treasury bonds which will he
offered March 26, 1951, in exchange for outstanding
2-1/2$ Treasury bonds of June 15 and December 15,
1967 -72 , will be dated April 1, 1951, will mature
on April 1, 1980 and' be callable on April 1, 1975.
The bonds will be non-marketable and non-transferable,
but will be exchangeable into marketable 5 year
1-1/2$ Treasury notes.
The notes offered in
exchange will be dated April 1 and October 1 of
each year with appropriate interest adjustments to
dates of exchange,
Interest on such bonds and
notes will be payable semi-annually on the 1st
days of April and October in each year.
0 O0
J -2
For Immediate Release
Stars day, March 8, 1951
Attorney General. J * Howard McGrath and Commissioner of Internal
this afternoon
Revenue George J# Schoeneman announced/that a criminal complaint against
Samuel R. Beard m s filed today in Baltimore
Monday morning.
A summons was issued, returnable
The complaint charged TSSS Beard nith^ilfully evading
|4?B,|f7*42 of his Federal income taxes for the year 1944*
Bernard J. Flynn, United States Attorney in Baltimore, said that
Beard, generally regarded as one of the largest gambling operators on
the Atlantic Seaboard, has been prosecuted on one other occasion for income
tax fraud.
taxes for
On January
17, 1933, he was convicted of criminal evasion of
1930 and previous years.
Federal prison.
amounted to
He was sentenced to serve
18 months in
Recommended additional taxes and penalties in these cases
|106,405*36.
325
I M M E D I A T E RELEASE,
T h u r s d ay, M a r c h 8.
1951.
S-2621
^ A t t orney G e n e r a l J. H o w a r d M c G r a t h and
C o m m i s s i o n e r of I n t e r n a l R e v e n u e George J. S c h o e n e m a n
a n n o u n c e d this a f t e r n o o n that a cri m i n a l c o m plaint
a g a i n s t Samu e l R , B e a r d was filed t o d a y in B altimore.
A summons was issued, r e t u r n a b l e M o n d a y m o r n i n g
The
c o m p l a i n t c h a rged B e a r d w i t h w i l f u l l y e v a d i n g
$ ^ 7 8 , 0 0 7 . 4 2 of his F e d e r a l income taxes for the y e a r
B e r n a r d J. Flynn, U n i t e d States A t t o r n e y in
B a l t imore, said that Beard, g e n e r a l l y r e g a r d e d as
one of ^the largest g a m b l i n g ope r a t o r s on the
A t l a n t i c Seaboard, has b e e n p r o s e c u t e d on one o t her
o c c a s i o n for income tax fraud.
On J a n u a r y 1 7
1 9 SS"
^ as c o n v i c t e d of c r i minal e v a s i o n of taxes "for
1 9 3 0 an d p r e v i o u s years.
He was sen t e n c e d to serve
10 m o n t h s in F e d e r a l prison.
Recommended additional
$ l 0 6 % 0 5 ^ 3 6 e n a "I"1:ieS
these
cases a m o u n t e d
to
The detail« of this issue are as
followss
Total applied for - 11,721,776,000
Total accepted
- 1,000,789,000 (includes #114,498,000 entered on a non
competitive basis and accepted in full
at the average price shown below)
Average price
« 99*646 Equivalent rate of discount approx* 1.403 $ per annua
Fiange of accepted competitive bidet
High
Low
* 99*656 Equivalent rate of discount approx* 1.3613» per annum
- 99.643
»
» »
«
»
1.412$ *
«
(9 percent of the amount bid for at the low price wae accepted)
Federal Reserve
District
Total
AppH«d for
Total
Accepted
Boston
Hew York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louie
Minneapolis
Kansas City
Dallas
San Francisco
# 19,339,000
1,370,913,000
27,42$,000
49,403,000
17,780,000
15,387,000
170,677,000
18,641,000
4,955,000
30,473,000
32,260,000
64.525,000
#
$1,721,778,000
$1,000,789,000
Total
16,064,000
665,529,000
16,055,000
45,583,000
17,771,000
15,387,000
104,747,000
16,630,000
4,955,000
25,013,000
21,260,000
».795.000
TREASURY DEPARTMENT
RELEASE MORNING NEWSPAPERS,
Tuesday, March 13, 1951«
S-2622
The Secretary of the Treasury announced last evening that the
tenders for $1,000,000,000, or thereabouts, of 91-day Treasury bills
to be dated March 15 and to mature June 14, 1951* which were offered
on March 8, were opened at the Federal Reserve Banks on March 12.
The details of this issue are as follows:
Total applied for - $1,721,776*600
Total accepted
- 1,000,789,000 (includes $114,498,000
entered on a non-competitive
basis and accepted in full at
the average price shown
below)
Average price
- 99-646 Equivalent rate of discount approx.
1.402$ per annum
Range of accepted competitive bids:
- 99*656 Equivalent rate of discount approx.
1 .361$ per annum
- 99-643 Equivalent rate of discount approx.
1.412$ per annum
High
Low
(9 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
$
19,339,000
1 ,270 ,913,000
27,425,000
49,403,000
1 7 ,780,000
1 5 ,387,000
170 ,677,000
18,641,000
4,955,000
30,473,000
32 ,260,000
64,525,000
TOTAL
$ 1 ,72 1 ,778,000
0 O0
Total
Accepted
16 ,064.000
665 ,529.000
16 ,0 5 5 , 0 0 0
^5, 583,000
17, 7 7 1 , 0 0 0
15, 3 8 7 , 0 0 0
104, 747.000
16 ,630.000
4, 955.000
25, 013.000
21 , 260,000
61, 795,000
$ 1 ,000,789,000
John W. Snyder, Secretary of the Treasury,
left Walter Reed Hospital today after a four-week
confinement in connection with a series of eye operations.
The Secretary will probably remain in his home at the
Wardman Park Hotel for a week's further convalescence
before returning to his office.
Physicians state that he
is making satisfactory progress.
TREASURY DEPARTMENT
Information Se rvice
W ASHINGTON, D .C .
IMMEDIATE RELEASE.
Monday, March i a / l Q S l.
S-2623
John W. Snyder, Secretary of the
Treasury, left Walter Reed Hospital
today after a four-week confinement In
connection with a series of eye operations
The Secretary will probably remain in his
home at the Wardman Park Hotel for a
week’s further convalescence before
returning to his office.
Physicians
state that he is making satisfactory
progress,
0O0
- 3 -
ALPHA
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
i|2
and
117
(a)
(1) °f
as amended by Section 115> of the Revenue Act of
the Internal Revenue Code,
19Ul,
the amount of discount at
which, bilijs 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. Hl8j 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-
f
.
’ALPHAS
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 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
March 22, 1951
, in cash or other immediately avail-
able funds or in a like face amount of Treasury bills maturing March 22, 1951*
-------------- m
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.
gift
The bills shall be subject to estate, inheritance,
or other excise taxes, whether Federal or State, but shall be exempt from
all taxation novf or hereafter imposed on the principal or interest thereof by
I
ALPHA
TREASURY DEPARTMENT
Washington
/ £>^
L7<^/I
0
FOR RELEASE, MORNING NEWSPAPERS,
ThursdayT March 1 5 f 1 9 5 1
The Secretary of the Treasury, by this public notice, invites tenders for
£ 1 .0 0 0 .0 0 0 .0 0 0
9| _ T r e a s u r y
, or thereabouts, of
in exchange for Treasury bills maturing
bills, for cash and
March^ggj^Jggl---- ' to 1x3 issued on
a discount basis under competitive and non-competitive bidding as hereinafter
'provided.
will mature
interest.
The bills of this series will be dated —
June 21, !951
»torchJB, lggl----- _> 311(1
___ _, when the face amount will be payable without
They wi l l t e 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, March 1?,
Tenders will not be received at the Treasury Departoent, 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 fran others must be accompanied
by payment of 2 percent of the face amount of Treasury bills applied for,
TREASURY DEPARTMENT
Information Service
RELEASE MORNING NEWSPAPERS
Thursday, March 15,_1951•
W ASHINGTON, D .C .
S-262^
The Secretary of the Treasury, by this public notice, invites
tenders for $1,000,000,000, or thereabouts, of 91~hay Treasury bills,
for cash and in exchange for Treasury bills maturing March 22, 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 March 22, 1951, and will mature .June 21, 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 ,00'
0, $ 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,, March 19, 1951. 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 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
y
-
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 March 22, 1951# in cash or
other immediately available funds or in a like face amount of
Treasury bills maturing March 22, 1951. 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 bil3s issued hereunder are sold shall
not be considered to accrue until such bills shall be sold, redeemed
or otherwise disposed of, and such bills are excluded from consid
eration as capital assets. Accordingly, the owner of Treasury bills
(other than life insurance companies) issued hereunder need include
in his income tax return only the difference between the price paid
for such bills, whether on original issue or on subsequent purchase,
and the amount actually received either upon sale or redemption at
maturity during the taxable year for which the return is made, as
ordinary gain or loss.
Treasury Department Circular No. 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
-
2
-
COTTON WASTES
(In pounds)
COTTON CARD STRIPS made from cotton having a staple of less than l-3/l6 inches in length, COMB R
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 “ w «
m°re
in staple length in the case of the following countries: United Kingdom, France, Netherlands,
Switzerland, Belgium, Germany, and Italy:
Country of Origin
Established
: TOTAL QUOTA
United K i n g d o m ....... .
flanaHa .............. . .
...............
British India .........
Netherlands ....... .
Switzerland .v......... •
D p 1 cririm .. ............
.Tana n ..... ........... ■
nV»rna -----_
F.cnmt.
---- -- --.... .
•
“SJ'jru ...............
f!nha ..... .
npnmanT ...............
Italy .... t............ *
1/
Imports
: Total imports
: Established :
Sept.
20, 1950,
33-1/336 of s
: Sept. 20, 1950, t© s
to
March
3, 1951
Total
Quota
:
: March 3, 1951
:
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
1,441,152
107,191
68,155
67,200
5,482,509
1,709,708
Included in total imports, column 2.
Prepared by the Bureau of Customs
1,854
—
24,156
—
1,441,152
1 ,441,152
75,807
68,155
22,747
14,796
12,853
-
1,854
***
*—
-
25,443
7,088 .
1.599.886
24,156
1,535,317
1/
hui*&
IMMEDIATE RELEASE
March 3*3* 1951
V
./
V
¿L
Preliminary data on imports for consumption of cotton and cotton waste chargeable to the quotas
established by the President’s Proclamation of September $, 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, 1950, to March 3. 1951« inclusive
Country of Origin
Egypt and the AngloEgyptian Sudan ....
P e r u ..... .
British India .......
C h i n a ....... .
M e x i c o .... .
Brazil ..............
Union of Soviet
Socialist Republics
Argentina...... .
H a i t i .... .
Ecuador .*..........
Established Quota
y
7 8 3 ,8 1 6
2 4 7 ,9 5 2
2 ,0 0 3 ,4 8 3
1 ,3 7 0 ,7 9 1
8 ,8 8 3 ,2 5 9
6 1 8 ,7 2 3
4 7 5 ,1 2 4
5 ,2 0 3
237
9 ,3 3 3
Imports
-
9 6 ,2 5 2
—
37,669
4 0 4 ,4 6 3
—
—
—
Country of Origin
Established Quota
Honduras ....... .....
P a r a g u a y ......... .
Colombia ............ .
Iraq ..................
British East Africa ...
Netherlands E. Indies
Barbados ..;..........
l/Other British W. Indies
Nigeria .. ►;........
2/0ther British 1. Africa
¿/Other French Africa ...
Algeria and 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.
¿/ Other than Algeria, Tunisia, and Madagascar.
hj Reopened February 1, 1951
Cotton 1-1/8* or more, but less than 1-11/168
Cotton, harsh or rough, of less than 3/4”
Imports Feb. 1. 1951, to March 3» 1951
Imports Sept. 20. 1950» to March 3, 1951
Established Quota (Global)
70 , 000,000
Imports
4 , 624,600
Established Quota (Global)
45,656,420
Imports
Quota filled
¿ is p jix & a
TREASURY DEPARTMENT
WASHINGTON
IMMEDIATE RELEASE
WEDNESDAY, MARCH 14,1951
a iL V J -U a w ttj.
S-2S25
- 1 -
Preliminary data on imports for consumption of cotton and cotton vasto 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-l/g inches other than rough or ha.rsk under
Imports Sept* 20, 1^50» to March 3» 1951» inclusive
Country of Origin
Established Quota
Egypt and the AngloEgyptian Sudan.....
Peru,.... .....
British India......••
China..........
Mexico........... .
4/
Brasil..............
Union of Soviet
Socialist Republics
Argentina. ..........
Haiti...............
Ecuador.............
783,816
2^7,952
2,003,5-83
1*370,791
8,883,259
618,723
475*124
5 ,203
237
9,333
Imports
96,252
37.669
^o4,U63
Country of Origin
Established Quota
H o n d u r a s . *••..
Paraguay........... «v..
Colombia..
Iraq. ............... ,, ,
British East Africa....
Netherlands E. Indies..
Barbados..•
l^Other British W* Indies
Nigeria. •
J2/0ther British W. Africa
¿/Other French Africa,. *.
Algeria and Tunisia...
Imports
752
$71
124
I95
2,240
71,388
21,321
5.377
16,004
’ 689
JL/ Other than Barbados, Bermuda, Jamaica, Trinidad, and Tobago.
2j Other than Gold Coast and Nigeria.
3/ Other than Algeria, Tunisia* and Madagascar.
5/ Reopened February 1, 1951
Cotton, harsh or rough, of less than 3/^*
Cotton 1—l/8ft or more, but less than l-ll/l6w
Imports Sept. 20, 1950, to March 3, 1951
Imports Feb. 1, 1951» t° March 3 » 1951
Established Quota (Global)
70,000,000
Imports
4,624,600
Established Quota (Global)
45,656,420
Imports
Quota filled
336
COTTON WASTES
(In pounds)
COTTON CARD STRIPS made from cotton having a staple of less than 1^3/l6 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~l/3 percent of the quotas shall
he filled .by cotton wastes other than comber wastes made from cottons of 1- 3/16 inches or mere
in staple length in the case of the following countries: 'United Kingdom, Prance, Netherlands;
Switzerland, Belgium, Germany, and Italy:
•
i. Established. .: Total Imports
: Established :
Imports . 1.J
Country of Origin
: TOTAL Q,TJOTA, Sept.. 20, 1950, to :
33~l/3$ of : Sept. 20, 1950,
________________ : "
■
: :_March 3, .1951______ : Total Quota : to March 3, 1951
United Kingdom*.... .
4,323,457
1,14+1,152
Canada«©
.
.
2^9,^90
107,191
Prance©.............fl./.
22? ,1+20 ://* *•
¿8,155
¿7*200
British India..... 69,627 -.
Netherlands.
.v..•..'
68,240
..
Switzerland.............
44,388 '■■■ r
/
Belgium.............
38,559
1,854
Japan.............. .
341,535
i
China................ .
17*322
E^jrpt* •*.#♦*•••♦»••••••#•
89135
*•
Cub0,0 •••»• *
•*••••»
G
|
"*
Germany.___ •
76,329
24,156
It aly..^.,^. -...,...»-•../
21, 263 ______________ 2_________
1,1+41,152
^
1,599,886 / / /
. ;
.
. .
5,482,509-*■
l/ Included in total imports, column 2.
Prepared by the Bureau of Customs
1;709,708________’
.
75,807
22,747
14,796
12,853
- .
■■■ ^
25*443
. 7,088
1,1+1+1,152
**
68,155,//
~,,v
*
-./’
1,854.’
•*•//'■
//
24*156/'
___________ *■*.«'1>555,3X7
-?■
IMMEDIATE RELEASE,
U/yd,y March 3*3./1951__________
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, 19ll, as modified b y the President’s proclamation of April 13, 19l2,
for the 12 months commencing M a y 29, 19 5Q> as follows;
Wheat
Country
of
Origin
Imports
Established j
Quota
{May 29, 19£o, to
sMarch 3 * 19i>l
(Bushels)
(Bushels)
7 9 5 ,0 0 0
Canada
China
Hungary
Hong Kong
■
Japan
100
Chi ted Kingdom
—
Australia
100
Germany
*100
Syria
New Zealand
Chile
100
Netherlands
2,000
Argentina
100
Italy
Cuba
1,000
France
Greece
100
Mexico
Panama
Uruguay
Poland and Danzig
Sweden
Yugoslavia
—
Norway
*
Canary Islands
1,000
Rumania
100
Guatemala
100
Brazil
Union of Soviet
Socialist Republics
100
100
Belgium
80U;CTO
••
•« Wheat flour, semolina,
crushed or cracked
s
•i
wheat, and similar
•»
wheat products
Imports
; Established t
Quota
t May 29, 19£©
s
•
• to March 3a
*
795,000
—
(Pounds)
(Pounds)
3 , 8 1 5 ,0 0 0
21,000
3,8l£,000
9,105
-
13,000
-
13,000
8,000
—
—
—
—
—
—
—
—
m
m
mm
—
—
_
|
7 5 ,0 0 0
1,000
£,000
£,000
1,000
1,000
1,000
11,000
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
mm
-
-
180
—
—
-
-
2,295
£l6
—
-
M
33
—
—
mm
—
**
—
mm
—
mm
-
795,000
3,827,1*39
TREASURY DEPARTMENT
WASHINGTON
238
IMMEDIATE RELEASE
Wednesday. March 14. 1951
S-2626
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 Presidentas proclamation of May 28, 1941, as modified by the President’s proclamation of
April 13, 1942, for the 12 months commencing May 29, 1950, as follows:
Wheat
Country
of
Origin
Established :
Imports
Quota
îMay 29, I960 to
îMarch 3. 1.951
(Bushels)
(Bushels)
Canada
China
Hungary
Hong Kong
Japan
United Kingdom
Australia
Germany
Syria
New Zealand
Chile
Netherlands
Argentina
Italy
Cuba
Prance
Greece
Mexico
Panama
Uruguay
Poland and Danzig
Sweden
Yugoslavia
Norway
Canary Islands
Rumania
Guat emala
Brazil
Union of Soviet
Socialist Republics
Belgium
795,000
—
795,000
—
<**
100
100
100
mm
'mm
—
—
100
2,000
100
-
1,000
100
mm
mm
mm
—
•M
mm
mm
mm
mm
—
»
—
—
-
1,000
100
100
mm
■mm
mm
—
—
Wheat flour, semolina,
crushed or cracked
wheat, and similar
wheat products
Established: I m p o r t s
Quota
:M a y 2 9 ,1 0 5
£0 M a r . 3 ,
(Pounds)
(PoiS§&)
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
9,415
180
_
'mm
mm
mm
mm
mm
mm
2,295
516
mm
mm
*■?
r^
mm
m*
33
—
mm
mm
mm
mm
mm
100
100
-
-
800,000
795,000
4,000,000
~
3,827,439
March 7, 19$l
to m. gmtmst
îh# following transactions vara mad# la «tiraci and guaranteed
securities of the Government for Treasury investment «id other
accounts during the month of February, 1951«
Purchases . » • • « « * » • * •
*#261,650,000
Salas * • * * • # » • « * * ♦ *
♦
Ket purchases • * • * « • « * *
*#261,227,500
(Sed) C* D. Komnu
Assistant Chief,
Division of Investments
f
!
Wisecarver 3/7/51
TREASURY DEPARTMENT
Information Service
W a s h i n g t o n , d .c .
REIEASE MORNING NEWSPAPERS,
Thursday« flsfo'
iniiojry 15» 195Ì»
Me
y
) - .
During the month of Janus**/ 1951*
market transactions in direct and
guaranteed securities of the Government
for Treasury investment and other
.accounts resulted in net purchases of
/ ,inr mtomm■r «
Secretary Snyder announced
today.
oOo
TREASURY DEPARTMENT
WASHINGTON, D .C .
Information Service
41
RELEASE MORNING NEWSPAPERS,
Thursday, March 15> 1951,
S-26 2 7
During the month of February 1951,
market transactions in direct and
guaranteed securities of the Government
for Treasury investment and other accounts
resulted in net purchases of $261,227,500,
Secretary Snyder announced today.
0O0
IMMEDIATE RELEASE
March Ì3* 19£l
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 March 3> 19£l > inclusive, as follows:
Commodity
Period and quantity
USfhole milk, fresh or
Cream, fresh or sour . •.
Quantity
19£l
3 ,000,000
Gallon
675
Calendar year
1 ,£00,000
Gallon
8£
Mov. 1 , 19£0Mar. 31, 19£l
£ 0 ,000,000
Pound
10,091*
29 ,239,808
Pound
(1 )
Quota filled
i£o,000,000
60,000,000
Pound
Pound
Quota Filled
59,863,878
£,000,000
pound
2 ,5ol*,2l*0
12 months from
Sept. 1£, 193>0
Calendar year
petroleum and petroleum
nmi^n/'+.S .............
Inerts as of
Calendar year
Fish, fresh or frozen,
filleted, etc., cod,
haddock, hake, pollock,
cusk, and rosefish • •• Calendar year
■gjhite or Irish Potatoes:
certified seed ......
other ................
Unit
Calendar year
Venezuela
2 ,613 ,137,096
822,651*,271
Netherlands
Other countries 963,1*29,333
( 1)
Gallon
Gallon
Gallon
951,51*2,537
706,197,977
51*3,51*9, U*9
The proviso to item 717(b) limits the imports for consumption at the
quota rate to 7,309,9^2 pounds during the first three months of the
calendar year.
TREASURY DEPARTÍ ENT
WASHINGTON
IMMEDIATE RELEASE
Wednesday. March 14. 1951
S-2628
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 March 3, 1951, inclusive, as follows:
Commodity
Period and Quantity
Unit
of
Quantity
Imports as of
March 3,
1951
Whole milk, fresh or
sour .............. .
Calendar year
3,000,000
Gallon
675
Cream, fresh or sour ...
Calendar year
1,500,000
Gallon
85
r.
Nov. 1, 1950Mar. 31, 1951
50,000,000
JTOUllU.
Eish, fresh or frozen,
filleted, etc., cod,
haddock, hake, pollock
cusk, and rosefish ...
Calendar year
29,239,808
Pound
(«:■
Qúotá filled’
White or Irish Potatoes:
certified seed ......
other ................
12 months from
Sept. 15, 1950
150,000,000
60,000,000
Pound
Pound
Quota filled59,865,878
Walnuts ................
Calendar year
5,000,000
Pound
Petroleum and petroleum
products .............
Calendar year
But ter ¿.............
Venezuela
2 ,613,137,096
Netherlands
822,654,271
Other countries 963,429,333
(l)
Gallon
Gallon
Gallon
1
P
i,A
O/
/
1
-Ü
J
Wc
r
i
2,504,240
951,542,537
706,197,977
543,549,149
The proviso to item 717(B) limits the imports for consumption at the
quota rate to 7,309,952 pounds during the first three months of the
calendar year.
yy^ D ^
immediate release
March 13*^1951
^
^
The Bureau of Customs announced today preliminary figures showing the
imports for consunption of commodities on which quotas were prescribed by
the Philippine Trade Act of 19U6, from January 1, 1951 to March 3, l^plj
inclusive, as follows:
products of the
Philippines
•
: Established Quota
Quantity
:
•
Buttons ...... . ••
850,000
: unit of
: Quantity
Imports as of
March 3* 1951
•
•
Gross
127,825
150,719
Cigars
200,000,000
Number
Coconut oil .......
1(1*8,000,000
Pound
29,688,857
Cordage
6,000,000
t!
1,388,077
R i c e ............
i,oUo,ooo
ft
—
(refined •..
1,90U,000,000
Sugars
Pound
210,558,U8U
(unrefined .
Tobacco .........
6,500,000
Pound
73,900
345
TREASURY
-
-msHiifaTOîî
I M M E D I A T RELEASE
Wednesday. March 14. 1951
3-2629
The Bureau of Customs announced today preliminary figures showing the
imports for consumption of commodities on which quotas were ■prescribed by
the Philippine Trade Act of 1946, from January 1, 1951 to March 3, 1951,
inclusive, as follows!
Products of the
Philippines
*
••
9
î Established quota
!
Quantity
i Unit of : Imports as of
j Quantity ï March 3, 1951
*
________ _______________ Î
___________ _________________ L_____ ........ -I-,--: . : .
Buttons
850,000
■.
.
Gross
127,825
150,719
Cigars
200 ,000,000
Humber
Coconut oil
448,000,000
Pound
29,688,857
1,388,07?
Cordage
6 ,000,000
h
Rice .....
1,040,000
a
(refined ♦,♦.
Sugars
1,904,000,000
Pound
(unrefined •.
Tobacco
210,558,484
6,500,000
Pound
73,900
Nellie Tayloe Ross, Director of the United States Mint,
today issued an appeal for the return to circulation of the
millions of copper one-cent pieces believed to be stored
in piggy-banks, sugar bowls and bureau drawers of American
homes.
The release of these coins would obviate the
manufacturing cost of replacing them for circulation, and
would save large quantities of copper greatly needed in the
defense effort.
Since the beginning of Communist aggression in Korea,
Director Ross pointed out, the demand- for new coins has
quadrupled.
During the first eight months of the fiscal
year, deliveries of coins from the three minting establish
ments totaled 1 ,1 1 5 ,000,000 pieces, one of the heaviest
delivery periods in the history of the Mint.
these coins were one-cent pieces.
Over 857,000,000 of
Deliveries of pennies
in February, usually a dull month in the retail trade,
totaled 33,000,000 coins.
full swing
As defense spending gets into
the demand for new coins is expected to increase
proportionately.
Ross
expressed the hopethat
enterprises will aid
banks, newspapers and
and other
other business
busi
in the drive to restore hoarded pennies to circulation.
to tho Mliib, but alicniw
•frft
p-yr>'h£mgp d
fo r
^^
n
n
iov
j n P l I T T O n 4O
?
oOo
at lucal banks and ■
TREASU RY DEPARTM ENT
Information Service
WASHINGTON, D .C .
347
I M M E D I A T E RELEASE,
W e d n e s d a y , M a r c h 14,
1953-♦
S-2630
N e l l i e f a y l o e Ross, D i r e c t o r of the U n i t e d
States Mint, t o d a y i s s u e d a n a p p e a l for the r e t u r n
to c i r c u l a t i o n of the m i l l i o n s of c o p p e r o n e - c e n t
p i e c e s b e l i e v e d to be stored in p i g g y - b a n k s , sugar
b o wls a nd b u r e a u d r a w e r s of .American h o m e s . The
r e l e a s e of these coins w o u l d o b v i a t e the m a n u f a c t u r
ing cost of r e p l a c i n g them for circulation, and
w o u l d save large q u a n t i t i e s of copp e r g r e a t l y
n e e d e d in the d e f e n s e effort.
Since the b e g i n n i n g of C o m m u n i s t a g g r e s s i o n
in Korea, D i r e c t o r R o s s p o i n t e d out, the d e m a n d
for n e w coins has q u a d rupled.
D u r i n g the first
e i ght m o n t h s of the fisc a l year, d e l i v e r i e s of
coins from the three m i n t i n g e s t a b l i s h m e n t s to t a l e d
1 , 1 1 5 , 0 0 0 ,0 0 0 pieces, one of the h e a v i e s t d e l i v e r y
p e r i o d s in the h i s t o r y of the M i nt,
Ove r 8 5 7 , 0 0 0 , 0 0 0
of these coins wer e on e - c e n t pieces.
D e l i v e r i e s of
p e n n i e s in February, u s u a l l y a d u l l m o n t h in the
r e t a i l trade, t o t a l e d 3 3 , 0 0 0 , 0 0 0 coins.
As d e f e n s e
s p e n d i n g gets into full swing, the d e m a n d for n e w
coins is e x p e c t e d to i n c rease p r o p o r t i o n a t e l y .
D i r e c t o r Ross e x p r e s s e d the h o p e that banks,
n e w s p a p e r s an d o t h e r b u s i n e s s e n t e r p r i s e s w i l l aid
in the d r ive to re s t o r e h o a r d e d p e n n i e s to c irculation.
oOo
TREASU RY DEPARTM ENT
Information Service
WASHINGTON, D .C .
RELEASE, MORNING NEWSPAPERS,
Monday, March 19, 195>1.
348
S-2631
Secretary of the Treasury Snyder today released the official circular
governing ■
the offeìring of 2-3
percent Treasury Bonds, Investment Series
’d]^
p_i
/o pe: •rind Treasury Bonds of June 15 and Decem.
A
.
,
f
of C
B-1975- 60 . TT
/m -,
her 1 5 , 19 0 ;- /? me?jv, at their Of >tion, exchange their bonds of either or both
series for the newi 2 -3/t pore eir - To n a n n y bonds, in authorized denominations.
The amount of the offaring wi 1 1
of 1967-72 of 1either or both of
,-a
A
y» O
if.
V
s
As announced by the Secretary on March U, 1951, the subscription books
m i l open on Monday, March 26, for a period of a bout two weeks, although
the Secretary reserves the right to close the books at any time without
notice.
The Secretary also today released the offering circular governing the
1-1/2 percent five-year marketable Treasury notes which will be available
for exchange to owners of the new 2-3 A percent Treasury bonds, at their
option,, during the life of the bonds. The first issue of the new notes will
be dated April 1, 1951, and will be available as soon as the 2—3/U percent
bonds are issued.
Pursuant to the provisions of the Public Debt Act of 19Ul, as amended,
interest upon the bonds and 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 circulars released toda^.
Subscriptions for the bonds 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 2 -1/2 percent bonds to be exchanged.
Subject to the usual reservations, all subscriptions will be allotted in
full.
The texts of the official circulars follow?
UNITED STATES OF AMERICA
2 ~ 3 Ä PERCENT TREASURY BONDS, INVESTMENT SERIES B-1975-80
Nontransierable
Dated and bearing interest fron April 1,
l$$l
Due April 1, 1980
REDEEMABLE AT THE OPTION OF THE UNITED STATES AT PAR AND ACCRUED
INTEREST ON AND AFTER APRIL 1, 1 ??£
Interest payable April. 1 and October 1
1951
Department Circular No. 883
Fiscal Service
Bureau of the Public Debt
I.
TREASURY DEPARTMENT*
OTi'ice of the Secretary,
Washington, March 26, 1951.
EXCHANGE OFFERING OF BONDS
1. The Secretary of the Treasury, pursuant to the authority of the
Second Liberty Bond Act, as amended, invites subscriptions, at oar* from
I
unuer ems circular w in be limited to the
amount of Ireasury Bonds of 19o7—72 of either or both of the specified
series tendered and accepted.
2.
Commercial banks will be permitted to exchange the 2-1/2 percent
Treasury Bonds of December 15, 1967-72, acquired by them on original issue
and bonds of either series held in trading accounts pursuant to Treasury
Department Circular No. 787, dated May 17, 19U6.
H.
DESCRIPTION AND TERMS OF BONDS
1. The bonds Yri.ll be dated April 1, 1951, and. Yri.ll bear interest from
that date at the rate of 2-3/U percent per annum, payable semiannually by
check on October 1, 1951, and t/iereafter on April 1 and October 1 in each
year until the principal amount becomes payable. They will mature April 1,
1930, and vri.ll not be redeemable prior thereto except as follows:
(a) They may be redeemed at the option of the United States on
and after April 1, 1975* in whole or in part, at par and accrued
interest, on any interest day or days, on I4. months» notice of re
demption given in such manner as the Secretary of the Treasury
shall prescribe. In case of partial redemption the bonds to be
redeemed will be determined by such method as may be prescribed
by the Secretary of the Treasury. From the date of redemption
designated in any such notice, interest on the bonds called for
redemption shall cease.
-
2
350
-
(b) They may be redeemed at the option of the duly constituted
representatives of a deceased owner*s estate, at par and accrued
interest to the date of paymentV if at the time of death they
constitute part of the decedent1s estate and the Secretary of the
Treasury is authorized by the representatives to apply the entire
proceeds of redemption to the payment of Federal estate taxes.
Bonds submitted for redemption hereunder must be duly assigned to
’’The Secretary of the Treasury Îor.recteption, the proceeds to be
paid to the Collector of Internal Revenue at
for credit
on Federal estate taxes due from estate of
ri "'
The bonds must be accompanied by Form FD 17 8*2/ properly"completed,
signed and sworn to, and by a certificate of the appointment of
the personal representatives, under seal of the court, dated not
more than six months prior to the submission of the bonds, which
shall show that at the date thereof the appointment was still in
fordo and effect. Upon payment of the bonds appropriate memo
randum receipt will be forwarded to the representatives, which
will be followed in due course by formal receipt frem the
Collector of Internal Revenue.
2. Although the bonds are payable only* at maturity except as provided
in the preceding paragraph, they may, at the owner’s option, as provided
in Department Circular No* 88U, be exchanged for 1-1/2 percent five-year
marketable Treasury Notes to be dated April 1 and October 1 of each year
during the life of the bond. If the bonds surrendered are in order for
exchange, the new notes will ordinarily be issued within ten oalendar days
from the date of surrender to the Treasury Department or to a Federal Re
serve Bank or Branch, The notes to be issued will bear the April 1 or
October 1 date next preceding the date of the exchange. Interest will be
adjusted to the date on which the exchange is made. > artial exchange of
the bonds in multiples of $1 ,000 , and reissue of the remainder, will be
permitted.
3.
The bonds will not bo acceptable to secure deposits of public
moneys, but they may be used as collateral for loans and may be pledged
as security for the performance of an obligation or for any other purpose.
In the event of a default on the loan or in the performance of the obliga
tion, the pledgee will have the right only to exchange the bonds for
1-1/2 percent five-year marketable Treasury notes. The bonds may not be
sold or discounted, and are not transferable in ordinary course, but they
m a y b e transferred (byway of reissue) (1 ) to successors in title,
...(Z) (in- the event of the death of the owner) to legatees, next of kin,
1/ An exact half-year1 s interest is computed for each full, half-year period
irrespective of the actual number of days in the half year. For a fractional
part of any half year,.computation is on the basis of the actual number of
days in such half year.
2/ Copies of Form PD 1782 may be obtained from any Federal Reserve Bank
or from the Treasury Department, Washington, D, C.
U)
O'
- 3 and other persons entitled, in accordance with the provisions of Depart
ment Circular No. 300, and (3) to State supervisory authorities in pur
suance of any pledge required under State law. A bond which has been
registered in the title of a State supervisory authority may be reissued
in the name of the original owner upon assignment by such authority for
that purpose* The term nsuccess or sl* as used in this paragraph includes
but is not limited to succeeding organizations, succeeding trustees, and
persons entitled upon the termination of a trust or the dissolution of a
fund or organization. Judgment creditors, trustees in bankruptcy, and
receivers of insolvents* estates will be entitled only to exchange the
bonds for 1-1/2 percent five-year marketable Treasury notes, persons
entitled to reissue under the provisions of this paragraph will succeed
to all the rights and privileges of the registered owners.
iu The income derived from the bonds shall be subject to all taxes
now or hereafter imposed under the Internal Revenue Code, or laws amend
atory or supplementary thereto. The bonds shall be subject to estate,
inheritance, gift or other excise taxes, whether Federal or State, but
shall be exempt from all taxation now or hereafter imposed on the prin
cipal or interest thereof by any State, or any of the possessions of the
United States, or by any local taxing authority.
5* The bonds will be issued only in registered form, and in denomi
nations of | 1 ,000 , $ 5 ,000 , $10 ,000 , $ 100 ,000 , $ 1 ,000,000 and $ 10 ,000 ,000 ,
6 . Except as otherwise specifically provided in this circular,
Treasury Bonds of Investment Series B-1975-80 issued hereunder will be
subject to the general regulations of the Treasury Department, now or
hereafter prescribed, governing United States bonds. The regulations in
Department Circular No. 815, (which govern 2-1/2 percent Treasury Bonds
of Investment Series A-1965), will not govern Treasury Bonds of Investment
Series B-1975-80. All questions concerning bonds issued hereunder and
transactions pertaining thereto should be submitted to a Federal. Reserve
Bank or Branch or to the Treasury Department, Division of Loans and
Currency, Washington 25, D, C.
III.
SUBSCRIPTION AND ALLOTMENT
1. Subscriptions will be received at the Federal Reserve Banks and
Branches and at the Treasury Department, Washington, Banking institutions
generally may submit subscriptions for account of customers, but only the
Federal Reserve Banks and the Treasury Department are authorized to act
as official agencies,
2. The Secretary of the Treasury reserves the right to reject any
subscription, in whole or in part, »to allot less than the amount of bonds
applied for, and to close the books as to any or all subscriptions at any
time without notice; and any action he may take in these respects shall be
final. Subject to these reservations, all subscriptions will be allotted
in full. Allotment notices will be sent out promptly upon allotment.
352
- i* IV.
PAYMENT
1 . Payment for bonds allotted hereunder must be made on or before
April 1, 1951, or on later allotment, and may be made only in Treasury
Bonds of 1967-72, due June 15, 1972, or Treasury Bonis of 1967-72, due
December 15, 1972, which will be accepted at par and should accompany the
subscription* Coupons dated June 15, 1951, and all subsequent coupons,
must be attached to bearer bonds of cither series when surrendered. If any
such coupons are m .ssing, the subscription must be accompanied by cash pay
ment equal to the face amount of the m ssing coupons. Accrued interest
from December 15, 1950, to April 1, 1951 ($7*31*89 per $1,000) vail be paid
to subscribers tendering coupon bonds following acceptance of the bonds.
In the case of registered bonds of either series tendered in payment,
checks in payment of accrued interest from December 15, 1950, to April 1,
1951, rail be dr aval in accordance with the assignments on the bonds
surrendered.
V,
OF REGISTERED BONDS
1, Treasury Bonds of 1967-72, due June 15, 1972, or Treasury Bonds
of 1967-72, due December 15, 1972, in registered form tendered in payment
for bonds offered hereunder should be assigned by the registered payees
or assignees thereof in accordance with the general regulations of the
Treasury Department governing
for transfer or exchange, in one
of the forms hereafter set forth, and thereafter should be presented and
surrendered with the subscription to a Federal Reserve Bank or Branch or
to the Treasury Department, Division of Loans and Currency, Washington,
D. C* If the new bonds are desired registered in the same name as the
bonds surrendered, the assignment should be to ‘»The Secretary 6f the
Treasury for exchange for 2-3/1* percent Treasury Bonis, Investment Series
B-1975-80n , If the new bonds are desired registered in another name, the
assignment should be to **The Secretary of the Treasury for exchange for
2~3/h percent Treasury Bonds, Investment Series B-19T5-80, in the name
of _ _ _ _ _ _ _
».
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 basis and up to the amounts indicated by the Secretary of the Treasury
to the Federal Reserve Banks of the respective Districts, to issue allot
ment notices, to receive payment for bonds allotted, to make delivery of
bonds on full—paid subscriptions allotted, and they may issue interim
receipts pending delivery of the definitive bonds.
2. Tho^Secretary of the Treasury may at any time, or from tir:e to
time, prescribe supplemental or amendatory rules and regulations govern
ing the offering, which m i l be communicated promptly to the Federal
Reserve Banks..
E. H. FOLEY
Acting Secretary of the Treasury.
353
UNITED STATES OP AMERICA
1-1/2 PERCENT FIVE-TEAR TREASUHI NOTES
Dated and bearing interest Iron
April 1 and October 1 of each year
Due five years frcn issue date
Interest payable April 1 and October 1
ISSUED ONLY IN EXCHANGE FOK
2~3/k% TREASURY
1951
BONDS, INVESTMENT SERIES B-1975-30
TREASURY DEPARTMENT,
Office cf the Secretary,
Washington, March 26, 1951.
Department Circular No. 88U
Fiscal Service
Bureau of the Public Debt
I.
1, Treasury
Liberty Bond Act,
only to owners of
and other persons
partment Circular
OFFERING OF NOTES
notes described herein are issued pursuant to the Second
as amended, and are offered by the Secretary of the Treasury
2-3/h percent Treasury Bonds, Investment Series B~X9?5~30,
entitled thereto, in accordance with the provisions of De
No. 303, dated March 26, 1951*
2. The first issue of these notes will be dated April 1, 1951. The last
issue will be dated October 1, 1979, or the April 1 or October 1 next preceding
the date on which the 2-3/U percent Treasury Bonds, Investment Series B-l975-00,
cease to bear interest if called for redemption prior to maturity.
II.
DESCRIPTION OF NOTES
1* The notes will be issued each six months during the life of the
2—3/U percent Treasury Bonds, Investment Series B-1975-80, in two series, to be
dated April 1 and October 1 in each year. The notes to be dated April 1 will
bear the series designation EA followed by the year of maturity and the notes
to be dated October 1 will bear the series designation EO followed by the year
of maturity. The notes will bear interest from their respective issue dates
at the rate of 1-1/2 percent per annum, payable somiaanially on April 1 and
October 1 in each year until the principal amount becomes payable. They will
mature five years from their respective issue dates, and will not be subject
to call for redemption prior to maturity,
2. The income derived from the notes shall be subject to all taxes, now
or hereafter imposed under the Internal Revenue Code, or laws amendatory or
supplementary thereto. The notes shall be subject to estate, inheritance,
gift or other excise tcixes, whether Federal or State, but shall be exempt
from all taxation now or hereafter imposed on the principal or interest
354
thereof by any State, or any of the possessions of the United States, or by
ahy local taxing authority,
3, The notes will be acceptable to secure deposits of public moneys.
They wall not be acceptable in payment of taxes.
U« Bearer notes Tilth interest coupons attached, will be issued in denomi
nations cf $1 ,00,), 15,100, 1 1 0 ,006 , $ 100,000 and Jl,000,000 . Thp notes will
not be issued in registered form.
5. The notes m i l be subject to the general regulations of the Treasury
Department, now or hereafter proscribed, governing United States notes.
H I.
ISSUE OF NOTES
1, The note? offered hereunder will be issued in exchange for 2-3/h
percent Treasury Bonds, Investment Series 3-1975-^0, following presentation
and surrender of the bond# duly assigned for exchange« The now notes m i l
ordinarily be issued within ten calendar days from the date of surrender of the
bonds to a Federal Reserve Bank or Branch or to the Treasury Department. The
notes m i l bear the April 1 or October 1 date next preceding the date of the
exchange and interest will be -adjusted to the date on which the notes are issued
by the Federal Reserve Bank or Branch or the Treasury Department. Interest
accrued at 2 -3 / 1 percent on the bonds surrendered from the next preceding
April 1 or October I to the date of exchange will be credited and interest at
l-i/2 percent for the same period m i l bo charged to the owner making the ex
change and the difference will be paid to the owner at the time the exchange
is made*
IV. ASSIGNMENT OF BONDS
1. Treasury Bonds, Investment Series B-1975-SO,.tendered in exchange
for notes offered hereunder should be assigned to «The Secretary of the
Treasury for exchange for the current series of EA or EO Treasury notes to
be delivered to
”, in accordance with the general regula
tions of the Treasury Department governing assignments for exchange, and
thereafter should be presented and surrendered with appropriate instructions
to a Federal Reserve Bank or Branch or to the Treasury Department, Division
of Loans and Currency, Washington .25, D. C. The bonds must be delivered at
the expense and risk of the owners.
V.
GENERAL PROVISIONS
1. As fiscal agents of the United States, Federal Reserve Banks are
authorized and requested to accept applications for the exchange of Treasury
Bonds, Investment Series B-1P75-30, for 1-1/2 percent five-year Treasury notes,
and following discharge of registration to issue the new 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 ex
change offering, which will be ccoaunicated promptly to the Federal Reserve
Banks•
E. H. FOLEY
Acting Secretary of the Treasury,
5
cover work«,
The common experience of the investigators was
that whenever they mentioned Capone's name in underworld
circles, it was greeted with a hushed silence•
The preserver charges,, would carry a maximum sent eue e of five years for
attempted defeat of payment « one year for concealing property from a revenue
officer, and ten years for filing a false document such as an offer in
compromise, or an aggregate possible maximum of sixteen years.
the possible maximum fine^ under each of these three charges
y m $10,000,
both
or an aggregate of $30,000.
Vh .
In addition,
If
these criminal statutes.
imprisonment and fines
¿ S net it is known that laris the holder through
A
II
of valuable resort properties in the/hake^gection around Mercer, ^
A
Wisconsin.
lodges
- J
is the manager during the summer season o^jwell-known
jml a bar and a restaurant in that area.
“slot machines
were permitted to Operate in the J"limimi if l;rrrm~irij duping which period
A
were
they/operated on these properties
¿Pf The present case against Capone was developed &a§
internal revenue officers employed Q M m r l o n g period of time
sii*
(f&ArU
Cl jiClBfeiig down hi »■^rrtrtrtirinB
yCL
fhere was a great deal of so-called under-
3
r3
More than 25
Ralph
Capone
agents of the Revenue
investigations*
Service have worked on the
They were doggedly determined to
break through the 11iron curtain”
behind which Capone sought to shield
regardless of thefract thaj>
his affairs»/iMW8 ^ears of patient and painstaking investigation
evidently would be required.
The names of Ralph
and Al Capone are only two of many
AniLfcJuwc
which have been highlighted in the long story of the running warfare
between
the Bureau of Internal Revenue and this particular gang*
Prank Nittc^ Hymie Levin, Murray ’“the camel” Humphreys, ana. Rocco
de G-rhzia are others who
investigators
another—
fell victim to the
and went to Jail*
Tomny Malloy
but he was shot to death while
Revenue Service
might have been
income tax evasion
charges were pending against him*
Prank “The Enforcer” Hitt^ was the first M
a casualty. He pleaded guilty to income tax evasion
to become
and served time.
In 19H9, Ralph Capone gave M s home address as
Avenue, Ch icago*
7 2 ^ South Prairie
~ 2-
live on a
Siice Alts death, Ralph has continued to/tesm " high, wide
a.-nfl handsome1' scale *"*“* though he never has gotten around to paying
the $12,289*59
income taxes involved in his I93O conviction
in
and imprisonment*
The Internal Revenue Bureau charged in the Chicago federal
Court
today that
Capone falsified his financial status when
he made an offer of
$25,000
tun ' i r u n * » in settlement of
A
income tax^1 charges against hiita totaling
plus the unpaid $12 ,289*59
more than $87,000
°£ ^he original case^#*4*^s#Sfefc*
In making the ¿$**9 offer, Capone represented that he had
assets of approximately $28,000, and liabilities of about $3,000
e:xclusive ¿aof tiaxe8T
^
^
owns substantial assets which were not disclosed in the compromise
offer*
Since the
entering against him of various
assessments making up the $100,000 total, Capone has consistently
attempted to evade payment of these taxes by concealing his
assets from officers of the Bureau of I ternal Revenue, it is
T1
charged.
IMMEDIATE RELEASE
5 - ^ ( ,
Fridayt M arc|jL l6, 195^
Another Capone was brought to hook today by the Bureau of Internal
Revenue. H e is Ralph Capone, Chicago racketeer, brother of the
late A1 of unsavory fame.
Oeorge J. Schoeneman, Commissioner of Internal Revenue, announced
the filini
a -fg,Xse offer in compromise involving unpaid income taxes oi
o&SB&t
approximately $100,000* The complaint also charged attempting to evade
taxes, and conceding assets from internal revenue officers.
^conrolaint was filed before a United States Commissioner
in Chicago, -and a warrant for Capone's arrest was issued.
The court action is a return engagement between Capone and the
Internal Revenue Service. He was indicted in 1930 for making a false
offer in compromise, and was sent to prison for three years and
fined $10 ,000»
Capone was a longtime associate of his brother Al in racketeering
in
of many
varieties. They took t u r n s l o o k i n g after
their gangland affairs —
aria
Ralph running things while Al was in prison,
xi running things while Ralph was behind bars.
TREASURY DEPARTMENT
Information Service
WASHINGTON, D .C .
360
IMMEDIATE RELEASE
Friday, March 16, 1951
S-2632
Another Capone was brought to book today by the Bureau of
Internal Revenue. He is Ralph Capone, Chicago racketeer, brother
of the late A1 of unsavory fame,
George J. Schoeneman, Commissioner of Internal Revenue,
announced the filing by the Department of Justice through the
United States Attorney at Chicago of a criminal complaint against
Capone, charging that he made a false offer in compromise in
volving unpaid income taxes of approximately $100,000. The
complaint also charged attempting to evade taxes, and concealing
assets from Internal Revenue officers.
The criminal complaint, was filed before a United States Com
missioner in Chicago, and a warrant for Capone*s arrest was issued.
The court action is a return engagement between Capone and
the Internal Revenue Service. He was indicted in 1930 for making
a false offer in compromise, and was sent to prison for three
years and fined $10,000*
Capone was a longtime associate of his brother A1 in racket
eering of many varieties. They took turns in'looking after
their gangland affairs — Ralph running things while A1 was in
prison, and A1 running things while Ralph was behind bars.
Since Al*s death, Ralph has continued to live on a "high,
wide and handsome" scale — though he never has gotten around to
paying the $12,289.59 in income taxes involved in his 1930 con
viction and imprisonment.
The Internal Revenue Bureau charged in the Chicago Federal
Court today that Capone falsified his financial status when he
made an offer of $25,000 in 19U9 in settlement of income tax
charges against him totaling more than $87,000 — plus the unpaid
$12,289*59 of the original case.
In making the offer, Capone represented that he had assets
of approximately $28,000, and liabilities of about $3,000 ex
clusive of taxes. The Bureau is convinced that Capone owns sub
stantial assets which were not disclosed in the compromise offer.
361
-
2
-
Since the entering against him of various assessments making
up the $100,000 total, Capone has consistently attempted to
evade payment of these taxes by concealing his assets from officers
of the Bureau of Internal Revenue, it is charged.
More than 25 agents of the Revenue Service have worked on the
Ralph Capone investigations. They were doggedly determined to
break through the "iron curtain" behind which Capone sought to
shield^his affairs, regardless of the fact that years of patient
and painstaking investigation evidently would be required»
The names of Ralph and A1 Capone are only two of many which
have been highlighted in the long story of the running warfare
between^the Bureau of Internal Revenue and this particular gang.
Frank Nitti, Jack Guzik, Hymie Levin, Murray "the camel" Humphreys,
and Rocco de Grazia are others who fell victim to the Revenue
Service investigators and went to jail*. Tommy Malloy might have
been another — but he was shot to death while income tax evasion
charges were pending against him,
Frank "The Enforcer" Nitti was the first to become a casualty.
He pleaded guilty to income tax evasion and served time, Nitti
is now dead, having committed suicide.
Ralph Caponefs 1930 conviction followed Nittits,
A1 and others in their various turns.
In 191*9, Ralph Capone gave his home address as
Prairie Avenue, Chicago.
Then came
72hh
South
The present charges against Capone would carry a maximum
sentence of five years for attempted defeat of payment of his
taxes, one year for concealing property from a revenue officer,
and ten years for filing a false document such as an offer in com
promise, or an aggregate possible maximum of sixteen years. In
addition, the possible maximum fine under each of these three
charges is $10,000, or an aggregate of $30,000. Both imprisonment
and fines may be imposed under these criminal statutes.
It is known that Capone is the holder through "dummies" of
valuable resort properties in the lake section around Mercer,
Wisconsin. He is the manager during the summer season of certain
well-known lodges, a bar and a restaurant in that area. For a
time slot-machines were permitted to operate in the area, during
which period they "were operated on these properties.
The present case against Capone was developed by Internal
Revenue officers employed over a long period of time in a wide
variety of investigative capacities. There was a great deal of socalled undercover work. The common experience of the investigators
was that whenever they mentioned Capone*s name in underworld
circles-, it was greeted with a hushed, silence.
3
/^But
as p r o f e s s i o n a l c r i m i n a l s have d e v i s e d n e w m e t h o d s
of t ax dodging,
the R e v e n u e S e r v i c e h as c o u n t e r e d
w i t h m o r e p a i n s t a k i n g and more s k i l l f u l m e t h o d s of
invest i g a t i o n .
constantly
It is in k e e p i n g w i t h the p o l i c y of
i m p r o v i n g the i n v e s t i g a t i v e system,
as
o ur a n s w e r to the c h a l l e n g e of the g a m b l e r and
r a c k e t e e r class,
that the S p e c i a l F r a u d S e c t i o n is
n o w b e i n g set up.
"The R e v e n u e S e r v i c e is c o m m i t t e d to the aim of
t r e a t i n g e q u i t a b l y all h o n e s t taxpayers,
and of
p r o p e r l y p e n a l i z i n g all p e r s o n s w h o s e e k to f r a u d
u l e n t l y e v ade their taxes.
There
R e v e n u e S e r v i c e for favoritism,
full and fair
is no p l ace
in the
and I a m c e r t a i n that
i n v e s t i g a t i o n will s h o w none e x i s t s . "
"These d i f f i c u l t i e s ver y o f t e n are numer o u s
severe.
T he
’b ig time*
r a c k e t e e r or g a m b l e r
s o u r c e f u l at h i d i n g e v i d e n c e of tax evasion.
and
is r e
Pains
t a k i n g i n v e s t i g a t i o n s almost always are required.
" C o m m i s s i o n e r S c h o e n e m a n e x p r e s s e d to the two
c h a i r m e n his c o n f i d e n c e —
and m ine —
that the R e v
e nue S e r v i c e r e c o r d s w o u l d d e m o n s t r a t e not only that
a ze a l o u s e f f o r t had b e e n mad e to e n f o r c e the income
t ax laws against
gamblers,
f e s s i o n a l criminals,
r a c k e t e e r s and o t her p r o
but also that i m p r e s s i v e results
h ad b e e n obtained.
"As an o r g a n i z a t i o n a l
improvement
of the R e v e n u e B u r e a u ’s work,
t a k e n to c o n c e n t r a t e
all
a c t i o n is n o w b e i n g
in a n e w S p e c i a l F r a u d S e c t i o n
tax i n v e s t i g a t i o n s
racketeers,
in this area
i n v o l v i n g gamblers,
m o b s t e r s and o t h e r s w ho make a p r o f e s s i o n
out of crime.
T h i s step w i l l s t r e a m l i n e the h a n d l i n g
of a large amount of t h e i B u r e a u ’s i n v e s t i g a t i v e
activity
in f r a u d matters^ /$;:Tr
T "efiSp/ute'
A
o t h e r B u r e a u agencies. ®
n l o devo t e more
tax collection^ t a$kis..
"The p u r p o s e of this n e w e n f o r c e m e n t u n i t has b e e n
d i s c u s s e d w i t h the H o u s e A p p r o p r i a t i o n s C o m m i t t e e and
the p r o p o s a l r e c e i v e d the C o m m i t t e e ’s s y m p a t h e t i c c o n
sideration.
P e r s o n n e l of the Sp e c i a l F r a u d S e c t i o n
w ill be c h o s e n f r o m expe r t
i n v e s t i g a t o r s w h o have
d e m o n s t r a t e d an a b i l i t y to get r e s u l t s against
the
p r o f e s s i o n a l cr i m i n a l type of tax e v a d e r s r e g a r d l e s s of
the d i f f i c u l t i e s encountered.
S e c r e t a r y S n y d e r s a i d today that the H o u s e Ways
and M e a n s C o m m i t t e e
and the Sena t e F i n a n c e C o m m i t t e e
w i l l have the f u l l e s t c o o p e r a t i o n of the B u r e a u of
t e r n a l R e v e n u e and the T r e a s u r y D e p a r t m e n t
In
in their
c o n t e m p l a t e d i n v e s t i g a t i o n s of the h a n d l i n g of income
tax f r a u d cases by t h e ^ R e ^ n u e
out that
it has
b e e n a w
Service.
He p o i n t e d
s t a n d i n g p o l i c y of the D e p a r t
m ent to p r e s e n t to the C o n g r e s s
plete
®
i n f o r m a t i o n as to the p r a c t i c e s and p r o c e d u r e s
of the B u r e a u
in c o l l e c t i n g the revenues.
The S e c r e t a r y said:
" C o m m i s s i o n e r G e o r g e J. S c h o e n e m a n of the B u r e a u
of
In t e r n a l R e v e n u e on M a r c h 7 a s k e d the c h a i r m e n of
the H o u s e Way s
and M e a n s C o m m i t t e e and the S e nate
F i n a n c e C o m m i t t e e for an o p p o r t u n i t y to a p p e a r b e fore
these c o m m i t t e e s and tell p r e c i s e l y wha t
ha s done,
and is doing,
the B u r e a u
to i n v e s t i g a t e the income tax
r e t u r n s of gamblers,
r a c k e t e e r s and o t h e r m e m b e r s of
the c r i m i n a l class.
T he T r e a s u r y c o n s i d e r s
in the n a t i o n a l
it to be
i n t e r e s t that the c o m m i t t e e s be f u lly
i n f o r m e d as to the f a cts of income tax law e nforcement.
"Legal r e s t r i c t i o n s w h i c h p r e v e n t the T r e a s u r y
and the R e v e n u e S e r v i c e f r o m m a k i n g p u b l i c d i s c l o s u r e
of c o n f i d e n t i a l
income tax i n f o r m a t i o n w i l l not apply
to e x e c u t i v e h e a r i n g s w h i c h may be c o n d u c t e d by the
committees.
A c c o r dingly,
it w i l l be p o s s i b l e to lay
b e f o r e t h e m all p e r t i n e n t d a t a c o n t a i n e d in the R e v
enu e S e r v i c e files.
T he C o n g r e s s has a u t h o r i t y to
m ake s uch i n f o r m a t i o n public.
TREASURY DEPARTMENT
h iii hi umilibi ....................................... ... .
Information Service
RELEASE MORNING NEWSPAPERS
Sunday, March 18, l?5l
W a s h i n g t o n , d .c .
s„ 26 33
Secretary Snyder said today that the House Ways and Means Com
mittee ;and the Senate Finance Committee Kill have the fullest co
operation of the Bureau of Internal Revenue and the Treasury
Department in their contemplated investigations of the handling of
income tax fraud cases by tne Revenue Service* He pointed out
that it has been a long-standing policy of the Department to pre
sent to the Congress complete information as to the practices and
procedures of the Bureau in collecting the revenues»
The Secretary said:
’’Commissioner George J, Schoeneman of the Bureau of Internal
Revenue on March 7 asked the chairmen of the Hcuse Ways and Means
Committee and the Senate Finance Committee for an opportunity to
appear, before these committees and tell precisely what the Bureau
has done, and is doing, to investigate the income tax returns of
gamblers, racketeers and other members of the criminal class« The
Treasury considers it to be in the national interest that the com
mittees be fully informed as to the facts of income tax law en
forcement .
’’Legal restrictions which prevent the Treasury and the Revenue
Service from making public disclosure of confidential income tax
lniormation will not apply to executive hearings which may be con
ducted by the committees. Accordingly, it will be possible to lay
before them all pertinent data contained in the Revenue Service
files. The Congress has authority to make such information public.
.’’Commissioner Schoeneman expressed to the two chairmen his
confidence — and mine —- that the Revenue Service records would
demonstrate not only that a zealous effort had been made to enforce
the income tax^laws against gamblers, racketeers and other pro
fessional criminals, but also that impressive results had been
obtained.
“As an organizational improvement in this area of the Revenue
Bureau s work, action is now being taken to concentrate in a new
Special Fraud Section all tax investigations involving gamblers
racketeers, mobsters and others who make a profession out of crime.
This step will streamline the handling of a large amount of the
«# 2 Bureau’s investigative activity in fraud matters, and at the same
time permit some of the other Bureau agencies to devote more
effort to regular tax collection and auditing tasks,
"The purpose of this new enforcement unit has been discussed
with the House Appropriations Committee and the proposal received
the Committee’s sympathetic consideration. Personnel of the Spe
cial Fraud Section will be chosen from expert investigators who
have demonstrated an ability to get results against the professional
criminal type of tax evaders regardless of the difficulties en
countered,
"These difficulties very often are numerous and severe® The
•big t i m e ’ racketeer or gambler is resourceful at hiding evidence
of tax evasion. Painstaking investigations almost always are re
quired,
"But as professional criminals have devised new methods of tax
dodging, the Revenue Service has countered with more painstaking
and more skillful methods of investigation.
It is in keeping with
the policy of constantly improving the investigative system, as
our answer to the challenge of the gambler and racketeer class,
that the Special Fraud Section is now being set up®
"The Revenue Service is committed to the aim of treating
equitably all honest taxpayers, and of properly penalising all per
sons who seek to fraudulently evade their taxes. There is no place
in the Revenue Service for favoritism, and I am certain that full
and fair investigation will show none exists."
BEI&A3S, MCfmiMl
Tuesday, March 20, 1951.
?ke Secretary of tbs Treasury anaouneed last evening that the tenders for
$1,000,000,000, or thereabouts, of 91-day Treasury bills to be dated larch 22 and to
smture dune 21, 1951, which were offered on larch 15, were opened at the Federal lesera
Bamks on larch 19*
The details of this issue are as follows?
$1,742,454,000
1,001,564,000
Total applied for
Total accepted
(incites $108,080,000 entered on a
non-competitive basis and accepted la
full at the « w a g e price shewn below)
99#645 Equivalent rate of discount appro*. 1.405* per annua
Average price
Uang« of accepted competitive bids?
Higji
- 99.65? Equivalent rate of discount approx. 1.357* per annum
Urn
-
99 , d
û
*
«
« »
«
1.10»
(85 perewet of the amount hid for at the lew price m s accepted)
federal Reserve
Bistrict ___
Total
Applied for
Total
Accepted
Boston
Sew Tork
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. louis
Minneapolis
Kansas City
Balias
San Francisco
$ 21,918,OCX)
1,21*6,319,000
36.369.000
44.624.000
I
U ,691»,ooo
140.722.000
17.739.000
13.621.000
115.568.000
12 ,213,000
3,769,000
2k,667,000
18,165,000
135,3k?,000
$l,7k2,k5k,000
*1,001,56k,000
17.739.000
.
16 921.000
158.568.000
12,628,000
3,814,000
24.667.000
.
18 16 5 .0 0 0
TOTAL
a.SW.ooo
571.919.000
25.319.000
■
*
TREASURY DEPARTMENT
REIEASE MORNING NEWSPAPERS,
Tuesday, March 20, 1951»
S-2634
The Secretary of the Treasury announced last evening that the
tenders for $ 1 ,000,000,000, or thereabouts, of 9 1 -day Treasury bills
to be dated March 22 and to mature June 21, 1951* which w r e offered
on March 15, were opened at the Federal Reserve Banks on March 19.
The details of this Issue are as follows:
Total applied for - $1,742*454,000
_ 1,001,564,000 (includes $108,080,000
Total accepted
entered on a non-competitive
basis and accepted in full
at the average price shown
below)
- 99.645 Equivalent rate of discount approx.
Average price
1.405$ per annum
Range of accepted competitive bids;
Hip*h
b
Low
- 99.65? Equivalent rate
l .357$
- 99.643 Equivalent rate
1.412$
of discount approx.
per annum
of discount approx.
per annum
(85 percent of the amount bid for at the low price was accepted)
Total
Accepted
Total
Applied for
Federal Reserve
District
$
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
TOTAL
2 1 ,918,000
1,246,319,000
36 ,369.000
44,624,000
17.739 ,0 0 0
16,921 , 0 0 0
158,568 , 0 0 0
12,628 , 0 0 0
3.814 ,000
24,667 ,0 0 0
18,165 ,0 0 0
140,722 ,0 0 0
$1 ,742 ,454,000
0O0
$
2 1 ,543,000
5 7 1 .919.000
25 .319.000
4 1 .694.000
1 7 .739.000
13 .621.000
1 1 5 .568.000
12 .213.000
3 ,769,000
24 .667.000
18 .165.000
__ 13 5 ,347,000
$1,001,564,000
- 3-
mm.
any State, or any of the possessions of the United States, or by any local tax
ing authority.
For purposes of taxation the amount of discount at which
Treasury bills are originally sold by the United States shall be considered to
be interest.
Under Sections
as amended by Section
Li.2 and 117 (a) (1) °f the Internal Revenue Code,
11$ of the Revenue Act of 19Ul, the amount of discount at
Yfhich bills issued hereunder are sold shall not be considered to accrue until
such bills shall be sold, redeemed or otherwise disposed of, and such bills are
excluded from consideration as capital assets.
Accordingly, the owner of
Treasury bills (other than life insurance companies) issued hereunder need 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 ty 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 vail be made by
the Secretary of the Treasury of the amount and price range of accepted bids.
Those submitting tenders will be advised of the acceptance or rejection thereof.
The Secretary of the Treasury expressly reserves the right to accept or reject
I
any or all tenders, in whole or in part, and his action in any such respect shall I
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
Federal Reserve Bank on
March 29. 1951
** cash or other immediately avail-
able funds or in a like face amount of Treasury bills maturing _ March 2jfy l # ! ^
Cash and exchange tenders will receive equal treatment.
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 fr
all taxation now or hereafter imposed on the principal or interest thereof by
ISQHBXm
— fSSJSSt^^SiAiinjENT
'Hfeshingt'cn
FOR RELEASE, MORNING NEWSPAPERS,
Thursday, March 22, 1951
-------- P 5
The Secretary of the Treasury, by this public notice, invites tenders for
& 1,000,000,000 > or thereabouts, of
91 -day Treasury bills, for cash and
— 1-- yfrV1■2~---yjty- "
in exchange for Treasury bills maturing
March 29^ 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
will mature
interest.
June 28^ 1951
March^29, lj g l ------> and
> when the face amount will be payable without
They will be issued in bearer form only, and in denominations of
$ 1 ,0 0 0 , $ 5 ,0 0 0 , $ 1 0 ,0 0 0 , $ 1 0 0 ,0 0 0 , $ 5 0 0 ,0 0 0 , and $ 1 ,0 0 0 ,0 0 0 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the
closing hour, two o*clock p*m., Eastern Standard time,
Monday. March 26P 19ffL*
W
Tenders will not be received at the Treasury Department, Washington.
Each tender
must be for an even multiple of $ 1 ,0 0 0 , and in the case of competitive tenders
the price offered must be expressed on the basis of 1 0 0 , with not more than three
decimals, e.
g., 99.925.
Fractions may not be used.
It is urged that tenders
be made on the printed forms and forwarded in the special envelopes which vail
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 vail 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,
TR EA SU R Y DEPARTM EN T
Information Service
WASHINGTON. D .C .
372
RELEASE MORNING NEWSPAPERS,
Thursday, March 22, 1951.
¡635
The Secretary of the Treasury, by this public notice, invites
tenders for $1,000,000,000, or thereabouts, of 9 1 -day Treasury
bills for cash and in exchange for Treasury bills maturing
March*?9, 1911, to be issued on a discount basis under competitive
and non-competitive biddirig as hereinafter provided. The bills of
this series will be dated March 29, 1951, and will mature Jun- 2B,
19^1 when the face amount will he payable without
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,
Mnndav March 26 1951. Tenders will not he received at the
Treasury Department, Washington. Each tender must he for an even
the
multiple of $1,000, and in the case of competitive tender not
more
price offered must be expressed on the basis of 10Q, vijb used.
than three decimals, e. g., 99-925. Fractions may not be
It is urged that tenders be made on the printed formo and forwarded
in the^special envelopes which will he supplied by Federal Reserve
Banks or Branches on application therefor.
Others than banking institutions will notmbeJPerm:i;h®d.F
submit tenders except for their own acco ^ t Tenders wil b
t
received without deposit from incorporated hanks and trust companies
and from reSensible and recognized dealers in investoent securities
Tenders from others must be accompanied by payment of 2 percent oi
the face amount of Treasury hills applied for, unless the tenders
are accompanied by an express guaranty of payment by an i
corporated bank or trust company.
Immediately after the closing hour, tenders Will be opehed at
the Federal Reserve Banks and Branches, following which public
announcement will he made by the Secretary of the Treasury of the
amount and price range of accepted bids. Those submitting tend
will be advised of the acceptance or rejection thereof.
Secretary of the Treasury expressly reserves the lught to
or reject anv or all tenders, in whole or in part, and his action
?n ¡ny such respect shall be’flnal Subject to these reservations,
non-competitive tenders for $200,000 or less Wl h
_ urice
from any one bidder will be accepted in iull at tne average price
■*0**~~
co
fiTUt
m m m ti»
stasar nauta
m
i
t
m
m t m t x m
m,
Subehapter B - ii«r*»u «f ite Publie D*bt
fw tJO assumons ooìwmim a m o f'cfB t®mw »
mwmor —a» |i J
» jaamxmwtmÿfaam
«KTOAtlca» »TOBTOB « 0 8 0PÎS » « M B » « f «JtW BI® » « * » P « W
3AVXKS m
* SS«* k
filili
w»
Dopertmoni C&r«alar »#. ü $
CUfle« «f tO*
W m h à m ^ r flirti v4A I W 1 .
Fimi. Sorti«*
mmm * f AO* iNSMio M fc
m m m r
offorino f« o h m v s of Sorlo» « 9m U m Sondo fterotofor*
©r Rorooftor xooood.
4
fortOor Xntoroot Attor Maiarily*
teM ssg# Fot S iri« » 0 Boni* S d orisi ip ooü â For
S « é ^ U o a m tilo g o *
F a t i m i In®»«# fax.
O m n i
nrevioioBo*
Subpart à^ùtSm±m t# Oonor» ©f Sort** I Soria*« S»«d»
ieroiofor» Or imoftor Xooood.
$w*
furmmt U
B m U m
n
(b) (t) «T 40» I o o o k Í U b o r A y B»«d
404# aa *e*Rd«d 0 4 t..$,§, Tff* (0) £t>^)* tfc» Surflur «f tb» t r m & m
offor» 4« « m n ®f fait#« $t»4o* âori»«» 8«»d» ai êmrim f {Hniaift» r*~
tmnmâ U
u Bond» «t $«ri«o I) wbo m m U m m U m m t M r lst«sM<mt b*yoad
«otarlty* 40» option» boreinofter «et tort«* Bond» «f Sari«« I w»r» tirât
i»»a«d m M m 1$ 4St& oad «iU oo&or» N | M g «a »«y 4# lt£l* Sw»0 option»
m m feorOby gpr»**t«d fer 40» bmmttt «f m m m m «f Sottd» of Sirio» I Mrefcofor»
or 0*r*«ft«r ia»u«d «ni «ro «» Modín» on tO» ünitod 3tôt«» a» if
forlO in 10» text M 40» bond»* 70» lr»
m
*»t
v m â la thoo» rofulatlons
I» é«ft»oé in Subport t•
3«o* 329*2»
tfe» protia&oa» «f subport i boroof do »«t in
«»y rootartot
4M rlgOt « f « m n of Bond» M io ri*« 1 t» cash tOMr boni» AT AIT n o s in
ocoorOaao» with «0» toi»» M ouoO bond».
1/ -PwiiHi u »
1:v.
<&■.•
m
^ S£v fil''
*
)
O
U
A
Hsip
YS
3
Subpart B— Partter Iatereet After Matwrltj
Sm . 329.3• O m n
ef Boads ef Serlee E» «*deb aeture e» ead afior
*•
1951, te«« tne optioa af retalning M e aatured banda fea a ferthar 10-year
parlad and «amiwr iatereet apea M e «atartty »*!»•• Mereef te ataree *t tb*
rete ef 2-1/2 pe»«eet atavie intereat per aras» fer the firet 7-1/* yaere ead
et a hlgher rete thareefter eo tteat M e agcregate reto* fer M e « H r w r « t«.!«» parlad a f U be « w a t 2.9 pereeat eeapeaaded eeaia«»ally.
*9 4CTI0* 19
mmnm
nmxm to
ottm m smwm
m » « m utuas m vm o
mmvos* wcmm trm m im m mmrn wm. xm m t 1*
teoowAsos wxts tss tmmm n t rom a tm mbu at w » a ? t®a» aw»uno«s.
Sea. 3tf.fc.
Iatereet hereander acaróte at M a ená ef M e firet half-year
parlad feUeeiag aaterity aad eeeb eeeeeaeire belf-yeer parteé Mereafter.
If
the Sonde ere redeeaed befare M e tai ef M e firet balf-year parteé folloelne
aaterity. tbe oaner le estltled te peyaeat osly at tóe faea rala# tbaraef.
Subpart C— Csahaage Per Sortee ñ Bend# Bewtot
Speelal Per Xadaaptie» Privtlege.
Sea. 329.5.
®enere ef Beoda ef Sariee * «bleb «atare o» and after dar 1,
1951. «feo prefer te tare aa iareetawat payis* eerreat laee»e « M a r M e a te
sacarais* thelr rtsírt to requeat «tete, er te »tala M e bond» «Oder Sebpart »,
nave M e optioa ef preeanting thelr «atareé bonda i» e«e*Bte ef $50® (-eleHty
ralee) er aaltiplee thereef lo «osbango fer Sarita 9 bond» ehioh «111 bear the
epeeial prtrtlege ef redeeptio» I T M á t i R T W » at M e eraer'e optle» ae eet
ferth la aeetlee 329.2. M e ewísange « U l be gereraed by M e ralee eet ferth
la eeetiea 329.7.
Baeept ae eet ferth la « d a Sebpart, M e Sarlea S beoda
latead upo» «rohanee « O I la «31 e M e r respecta be M e aspe ee M e Sariee 0
beada enrraatly ea sale whioh »atare 12 yaere f w » lean# dete ead bear iatereet
et M e r e M ef 2-1/2 pereeat per
atea»
páyatele aeaéamnaUy by abeek draoro te
M e arder ef M e regiatered ornar.
Seo. 329.6.
The Sariee 0 beada iaeaed opea exohange «111 be epeelally
ataoped te látatele M e t M o r «re uoooniitionelly reáoeoMle by M e eeaer
Af PAS Af ART TZbg after 6 «eatba fio» M e latee date apon ene calendar aeaM'a
i
■
I
■HÉHi
notte© te © Federai Reaerve Bank or Brandii or t© thè Treaeaiy Department.
The
Serie» 0 Bende eurrently ©a »ale Ter eaeh sub#cription ®ay aot he redeeaed et
per prior te maturity axeept la thè event of death a» »et forte la thè regala«»
tiene governing United State» Savinge Bende.
thè folloning rulee gemerà thè exehange under thle Subpart*
tee*
{!) thè Serie» 0 benda »111 fee registered la thè rasata of thè mm*r* of thè
mature*! »onda of Serie» 1 la any authorìaed fona ©f regia tratieni (f) Serie# 0
benda olii be laauad upon exohange Oliti la denomiiiatiofia ef #$00, $1,000, #5,000
and #10,000 (maturity vaiti#)j (I) thè Bende ef Serie» E uaed la thè exehange amai
be preeented te a Federai Reaerve Bank or Braneh or te thè Treaeury Department,
Washington 2$, D. (##, net later than tue oelendar mentile after thè' aonth ef maturity
and thè bende ef Serie» 0 laeued upea exehange »111 be deted ee ef thè flret dey
©f th® aoath la »hleh thè Benda ef Serie# E mature*!} bat (h) If aa omuer deelree
te accumulate a nuaber ef Bende ef Serie» 1 far exehange te boni» ef Serie» 0
in aay authorized denomina tlen eet forth la {i) he may aeeuaulate eueh bende dur~
lag any tornirne eeneeeutlme eeleader aoath» and preeent them for exehange net later
thaa tee ealeadar montha after thè aoath ef maturity ef thè laet beai la thè group
t© be exehenged »ad thè Serie» 0 bende laeued upea aueh eaeehenge »111 be deted
©n a veighted amerege datili beale »hioh »111 afford aa adequate inteneat adjuatP« p1b S duriiig whieh thè owner ha» eecuanleted thè Boads ef Serie# X
for thè exehange} and (5 ) Ce»h sufeseriptions la whole or l a pari wUX m% be
aoeepted far thè Serie# 0 benda off©rad under thle Subpart.
Subpart ©— Federai Imene fax.
Set* 32?.S.
A i«*$*yer saio ha# I m m reporting thè inareaee la redsmptioa
valu® 0; **"8 ^»da of Serie# E, for Federai incesa® tea purpoaee, eeoh yeer ee It
eeeruee, muat ©ontinue te do eo If he retala» thè bende under Subpart B,
In accordano» with i m a m t u ragulationa (Kegulationa 111 , aeotioa W . M - 6) thè
««aura* peralaaion fra. tha Oamieaioner of Intarmi Harenu« ta -»■-gr
to a different «ethod ef reporting inooae fra. sueh obligatlona.
a
taxpayer who
h m not bson reporting thè inorarne in redeaption mina af such banda aurrently
for ta*purposea *ay ir, any year prior to final ìaatarity, and eubjeet ta tba
provi»tono of aaatian
hi
(b)of thè Internai Ravenna Sode and of thè
■ «S O
prescribed tharetfadar* «l««t for *mh yoer aad a*b««<pai*t | « n ta ripert #«ch
loldari ©f Booti« ©f Borio* %ubo Boro noi roportod th* increa»«
ineonui ««iaXly*
im rodonpilaa volo« ©nrraailar or# raaoirad io includa »©oh «s«oai 1» troo* immm
jfor thè
jntor ©C affettili rodei&piioij ©r far tho
t*®nsble
la tfàleh tha
p*rl©d of axtaaolan and«, «hlaharar io aorlltr«
Set«
Taxpoyar© «ha axafeangt iBoir aatnrad Banda ©f Borita S far
Borio« i beai» «aéar tha prorialoii» «f Sudori £ «noi repart tho diffarance
betwaea tho parali**© prie« ©f thelr Sorioo 1 b©M» ató tho aataritp ©mia© tharaaf
in thoir rotar»« far ih© year 1« wfcieh ho fe©nd* tatara t© tho «atout t© whicà
mmb dlffaranaa ho* m% hom rapariod la prarioa* rotarci* fho intoroot poyabXo
on 'tho Sarta# 0 bendo tmmmé m p m oxsh&ngo «tot Imi roportod a* ino«** far tho
boxati« piar in ©Mali faaaioad or «eercad.
ff forcar inforcati©» ©cneami»« $he immm tax io dosirod,
Bea«
ttw m ihmM ha addraooad t© tho 0©llaet©r «f Intaniti i m a w «f thè tapajrar’a
district orto
Ü t Bnraa» ©f lattimi Baroli, Washington t%9 i. 0*
Sabpart
Sta* Jfp*U.
I~S«iisraX Provioioiw.
Bafinitioa af tara«*-~i«) fha t o n •B»ad» ©f Bari©« r
a» ««ad
la thè*« ro^lotiona incitas a U Benda ©f Sorto* 1 isaaaé aa Baitod Stata«
Befano© Serin«« Bond», Bnitad Stata« W«r Satin«« Bond« and all ih©*# issood a«
Saria« I «ovin«« bond« «ithoat special dasignatiea} (h) fha
ter» **©ta«r«* a«
«aad in thaaa ragclotlo^i iaolndaa rtfistorad ownera, accanerà, «aretriiig bane*
fiei«rla«9 noxt ©f kin and legate®* «f a daoaeaad ©enar* and persone «ho bar«
aoqalrad bendo persoant t© judìsìsl pressatiti«« againot tha cenar* axeapt that
^nd«o«nt ©rodi tara* tmataaa in biœteraptay and rooolror» af inacirant«1 ostato»
«ili baro tha righi caXj ta payneai ©f fondo ©f Saria« 1 in acoardaaca aith tho
ragaletion» «©©aratili HMtod Stato« Savi»«« Bond««
Saa* Jtp*Xt* Bight to pirchaao Bond» ©f Siri#« 1 and § ©nrrantly.«— Tha
«secai of natnrad ioni* of Seria» 1 ratainod after maturity and thè aasoaat of
bonde of Baria« @ isaaad ape» «atehanga in accordane# oith tbaaa rafnXaUan« wìll
m % ha inalndod in tho Uniteti«» ©a holdings applicable t© tha aacnxvt ©f benda
of «ueh ««rii* whioh mmj ba pcrahasad bj
mi
investor oech caionder patri axoopt
that nothinf barala contained «hall ha onatrtjod t© parait tho ourront pnrahaaa
Of saving* bonds of Sortes E for the account of organisation^and fiduciarios
or the purchase of savings bonds of either series for the account of persons eh©
are net entitled to have thee on original issue, contrary to the prensione of
the regulations governing Vetted Stetes Savings Sonde.
See. 329.13•
Modification of other circulars*— The provisions of these
regulations shell be considered as amendatory of end supplementary to the offer*
leg circular for savings bonds of Seiles 1 (Department Circular Ho. 653 end Ite
revisions), the offering circular for savings bonds of Series G (Departaent
Circular Ho. 6Sh and its revisione) and the cireular containing the regalatici*
governing United Stales Savings Bonds'^ which circulars arc hereby modified to
accord with the provisions hereof.
See. 329.Ui.
Other circulars generally applicable.— Except as provldsd in
theca regulations, the circulars referred to in the preceding section sill con
tinue to be generally applicable.
ice. 329.15*
Supplements and amendments.— The Secretary of the Treasury
cay at any tice or freo tin* to Use supplement or amend tbs tasso of these
regulations, or of any amendment or supplement thereto.
-"■■■'C" #
f
»/ «
/
a
/
1/ the regulation« currently in forco governing United States Savings Bonds art
sot forth in Separinosi Circular Ho* 530, Sixth Bovisten« as amended.
W a * * * *»' *•#* s'*. &'*. 1 1 1
Fw l
¡ m
-
*
IlfYS
m
l
Table of Redemption Values During Period of Extension
of $109 Series E Bond
Redemption
Value
period Elapsed
Ifter Extension
I#!!!»«
........
1100.00
......
ica.25
1 to 1 —1/2 years ♦ * • • • » * • . .......
102.50
1 -1/2 to 2 years . * • • * • * ♦ ....... .
103.75
BSIfefefÿ
1 4
■Bll
■
2 to 2-1/2 years « . . . « « . « ....... .
105.00
2—1/2 to 3 years • * • ....... . . . . . .
106.25
E ly
3 to 3-1/2 years • * . ....... . . . . . .
107.50
3-1/2 to
108.75
Legs than 1/2 year * * . . « • *
mti
1
- -
im
f
^
$MBi|8
4
years . . . . . . . .
......
4 to 4-1/2 years
4-1/2 to
5 years «
5 to 5-1/2 years «
l&Èwm'
5-1/2 to 6 years <
111111
liP P s
6 to 6-1/2 years
.
6-1/2 to 7 years
<
7 to 7-1/2 years <
1
7-1/2 to
8 years
8 to 8-1/2 years
1
8-1/2 to
9 years
9 to 9-1/2 years
9-1/2 to 10 years
1
1
Usd of
10 years
(from date of extension)
133*33
I
B
u
—
I
'-:-V f , Æ -r V ^ ;:r'v-"s'
! prc
_
'M w V u
• 2 •
when prss9 tit0 d for pftyiont tbo holder will r#ctiv® tht full face value of tht
bond plus Interests which ha# accrued at the new 'fate#*
(A table showing the
redemption value# for a $100 bond during the extended ten-year period i* attached
at the end of this statement*)
Congress has continued the existing option of
paying Fedaral Income taxes on interest on Series B bonds currently or in the
year in which the extended bond# finally mature or are redeemed*
Option 3*
Exchange for a Series
g Bond.— fhls
third option was specifically
designed for those who are desirous of receiving current interest income*
Series G bonds are registered bonds issued at face amount and bear interest at
the rate of E-l/2 percent per annum, payable semiannually from issue date
until their maturity in 12 years.
A holder of maturing E bonds may exchange
such holdings for the current income G bonds within a period of time prescribed
by treasury regulations*
He may redeem the G bonds at his option at any time
after six month# from the issue date upon one calendar month*s notice*
Also,
G bonds is sued in exchange for maturing E bonds will be redeemable at full
faee value whenever they are presented for payment*
However, the privilege of
deferring taxes on the interest on a Series E bond does not apply if the B bond
is exchanged for a G bond*
the privileges which I have just outlined will apply to all outstanding
E bonds as they mature, and will apply to all new Series E savings bonds
Issued in the future*
the treasury*# program for voluntary reinvestment was decided upon after
long deliberation, extensive consultation, and cooperative effort*
Hany groups
and individuals met with officials of the Treasury and gave considerable
time and thought to the measures which would be in the best Interests of both
the Government and the bondholders*
I wish to express
my sincere appreciation
to them and to the Congress for helping to effeetuate this program*
&
^
d
m
s r t e f e ^ ^ s n r i S M i
I am stir® that the signing today %
will
be welcomed
expressed
a
J(
' /$
President Truman .of H* E* 2268
b y the many holders of Series E Savings Bonds who have
desire for a convenient reinvestmont plan.
I
was deeply
gratified by the dispatch with wliich Congress passed thin necessary leg
islation to effectuate such a plan.
An official circular giving the details of the reinvestment privileges
available to owners of maturing Series 1 Savings Bonds will be issued im
mediately •
Jxi the
ias«ntime , I desire to brioil^ outline the various
opticxis which the Treasury
Option Xm
will
offer holders of these bonds:
Cash»— The owner of ary Series E bond, may receive, if he
wishes, full cash payment for his band at maturity.
This is, of course,
in accordance with the original terns of his contract.
He m y receive his
cash by presenting his matured bond to any qualified bank or other paying
agent, any federal M m r m
Bank or branch, or to the United States Treasury.
I want to make it ahs olutsly clear that '¿he offerings under Options 2 and
3 with respect to maturing bctids do not in any w a y restrict this right of
the investor to cash M
b
bond at any time.
Option 2 ...Extension of E Bonds.— Under thin option, the owner will
be given the privilege of retaining his bond for a period not to exceed
1 0 additional yean* during which time interest will accrue at the rate of
2 - 1 / 2 percent simple interest each year for txm first 7 -1 / 2 years, and then
Increase f®r the rcssaxsing 2 —1 / 2 years to bring the aggregate interest
return to approximately 2„$> percent, compounded setMarmually.
requires no action on the part of the owner.
This choice
Any bond which is not turned
in for cash at its original mat rity date will be extended until such time
as the owner does present it for payment.
However, again I wish to emphasize
that the extended bonds will also be redeemable at the owner’s option, and
A „
..
-j V.-.
....... .
TREASURY DEPARTMENT
Information Service
WASHINGTON. D .C .
immediate r e l e a s e ,
Monday, March 26, 1951.
3-2636
Secretary Snyder today issued the following statement:
signing today by President Truman of
H. R. 22oo will be welcomeo. by the many holders of Series E
Savings Bonds who have expressed a desire for a convenient
reinvestment plan. I was deeply gratified by the dispatch
with which Congress passed this necessary legislation to
effectuate such a plan,
11
"An official circular giving the details of the reinvest
ment privileges available to owners of maturing Series E
Savings Bonds will be issued immediately. In the meantime
I desire to briefly outline the various options which the ’
Treasury will offer holders of these bonds:
"Option 1, Cash. — The owner of any Series E bond
may receive,If he wishes, full cash payment for his bond
at^maturity. This is, of course, in accordance with the
os’islfr&l terms of his contract. He may receive his cash
by presenting his matured bond to any qualified bank or
other paying agent, any Federal Reserve Bank or branch,
or to the United States Treasury, I want to make it
absolutely clear that the offerings under Options 2 and
3 with respect to maturing bonds do not in any way restrict
this right of the investor to cash his bond at any time,
"Option 2. Extension of E Bonds, — Under this option,
the owner will be given the privilege of retaining his bond
for a period not to exceed 10 additional years during which
time interest will accrue at the rate of 2-1/2 percent
simple interest each year for the first 7 -1/2 years, and
then increase for the remaining 2-1/2 years to bring the
aggregate interest return to approximately 2.9 percent
compounded semiannually. This choice requires no action
on the part of the owner. Any bond which is not turned
in for cash at its original maturity date will be extended
until such time as the owner does present it for payment.
However, again I wish to emphasize that the extended bonds
will also be redeemable at the owner’s option, and when
presented for payment the holder will receive the full face
value of the bond plus interest which has accrued at the
new rates.
(A table showing the redemption values for a
382
-
2
-
$
k°nc^ during^ the extended ten-year period is attached
at^the end of this statement.) Congress has continued the
existing option of paying Federal income taxes on interest
on-^Series E bonds currently or in the year in which the
extended hones finally mature or are redeemed.
. n-9PtlQn
Exchange for a Series G Bond. -- This third
option wasspecifically designed for those who are desirous
of receiving current interest income. Series G bonds are
registered bonds issued at face amount and bear interest at
the rate of 2-1/2 percent per annum, payable semiannually
from issue date until their maturity in 12 years, A holder
of maturing E bonds may exchange such holdings for the
current income G bonds withxn a period of time prescribed
by Treasury regulations. H© may redeem the G bonds at
his option at any time after six months from the issue
date upon one calendar month's notice. Also, G bonds issued
m exchange for maturing E bonds will be redeemable at full
face value whenever they are presented for payment. However
the privilege of deferring taxes on the interest on a Series
E bond does not apply if the E bond is exchanged for a G bond.
The privileges which I have just outlined will apply
to all outstanding E bonds as they mature, and will apply
to all new Series E savings bonds issued in the future.
The Treasury's program for voluntary reinvestment was
decided upon after long deliberation, extensive consultation
and cooperative effort. Many groups and individuals met
with officials of the Treasury and gave considerable time
and thought to the measures which would be in the best
interests of both the Government and the bondholders.
I wish to express my sincere appreciation to them and to
the Congress for helping to effectuate this program."
Attachment
oOo
383
- 3 Table of Redemption Values During Period of Extension
of $100 $@ries f Bond
Period Elapsed
After Extension
Redemption
Vaiue
$100.00
Less than 1/2 year . . « 4 * « » * * • *
1 /2 to 1 year . .
. .
% • « % * . •
101.25
1 to 1 -1 /2 years . . .
:* ,f $ ¥ * •
102.50
1 -1 /2 to 2 years „ . .
103.75
2 to 2 -1 /2 years , . .
105.00
2 -1 /2 to 3 years . . .
106.25
3 to 3 -1 /2 years . . .
107.50
3 -1 /2 to 4 years . . .
108.75
4 to *1- 1 /2 years . . ,
110.00
4-1/2 to 5 years . . .
1 1 1 .2 5
5 to 5 -1 /2 years . . .
112 .5 0
5 -1 /2 to 6 years , . .
113 .7 5
6 to 6-1/2 years . . .
115.0 0
6-1/2 to 7 years . . .
116 .25
7 to 7-1/2 years . , .
117 .5 0
7-1/2 to 8 years . , .
120.00
8 to 8-1/2 years . . .
•
122.67
8-1/2 to 9 years . . .
125.33
9 to 9-1/2 years , . . • •
128.00
9-1/2 to 10 years. . .
130.67
End of 10 years
(from date of extension)
133.33
384
REGULATIONS
GOVERNING OPTIONS OPEN TO OWNERS OF MATURING UNITED STATES
SAVINGS BONDS OF SERIES E
1951
Department Circular No« 885
TREASURY DEPARTMENT,
Office of the Secretary,
Washington, March 26, 1951#
Fiscal Service
Bureau of the Public Debt
SUBPART
A
Offering to Owners of Series E Savings Bonds Heretofore
Or Hereafter Issued«
B
Further Interest AfterMaturity.
C
Exchange For Series GBonds
Redemption Privilege.
D
Federal Income Tax.
E
General Provisions.
Bearing Special Par
Subpart A— Offering To Owners Of Series E Savings Bonds
Heretofore Or Hereafter Issued©
Sec. 329.1. Pursuant to Section 22 (b) (2) of the Second Liberty Bond
Act, as amended (31 U.S.C. 757c (b) (2)l/), the Secretary of the Treasury
offers to owners of United States Savings Bonds of Series E (hereinafter re
ferred to as Bonds of Series E) who wish to continue their investment beyond
maturity, the options hereinafter set forth» Bonds of Series E were first
issued on May 1, 19Ul and will mature beginning on May 1, 1951* Such options
are hereby granted for the benefit of owners of Bonds of Series E heretofore
or hereafter issued and are as binding on the United States as if expressly set
forth in the text of the bonds. The term Howners” as used in these regulations
is defined in Subpart E.
Sec. 329.2. The provisions of Subpart B hereof do not in any way restrict
the right of owners of Bonds of Series E to cash their bonds AT ANY TIME in
accordance with the terms of such bonds.
Subpart B— Further Interest After Maturity.
Sec. 329.3. Owners of Bonds of Series E, which mature on and after May 1,
1951, have the option of retaining the matured bonds for a further 10-year
period and earning interest upon the maturity values thereof to accrue at the
rate of 2-1/2 percent simple interest per annum for the first 7-1/2 years and
at a higher rate thereafter so that the aggregate return for the 10-year ex
tension period will be about 2.9 percent compounded semiannually. NO ACTION IS
REQUIRED OF OWNERS DESIRING TO TAKE ADVANTAGE OF THE EXTENSION. MERELY BY CON-*;
TINUING TO HOLD THEIR BONDS AFTER MATURITY OWNERS WILL EARN FURTHER INTEREST IN '
ACCORDANCE WITH THE SCHEDULE SET FORTH IN THE TABLE AT THE END OF THESE
REGULATIONS#
U
Act of March 26, 1951#
à
385
-2 ~
Sec* 329*1+© Interest hereunder accrues at the end of the first half-year
period following maturity and each successive half-year period thereafter* If
the bonds are redeemed; before the end of the first half-year period following
maturity, the owner is entitled to payment only at the face value thereof*
Subpart C— Exchange For Series G Bonds Bearing
Special Par Redenption Privilege*
Sec* 329*5«
Owners of Bonds of Series E which mature on and after May 1,
1 9 5 1 , who prefer to have an investment paying current income rather than to
exercise their right to request cash, or to retain the bonds under Subpart B,
have the option of presenting their matured bonds in amounts of $ 5>00 (maturity
value) or multiples thereof in exchange for Series G bonds which will bear the
special privilege of redemption AT PAR AT ANT TIME at the owner*s option as set
forth in section 329©6* The exchange will be governed by the rules set forth
in section 329©7© Except as set forth in this Subpart, the Series G bonds
issued upon exchange will in all other respects be the same as the Series G
bonds currently on sale which mature 1 2 years from issue date and bear interest
at the rate of 2 - 1 / 2 percent per annum payable semiannually by check drawn to
the order of the registered owner*
Sec* 329»6e The Series G bonds issued upon exchange will be specially
stamped to indicate that they are unconditionally redeemable by the owner AT
PAR AT ANY TIME after 6 months from the issue date upon one calendar month*s
notice to a Federal Reserve Bank or Branch or to the Treasury Department* The
Series G bonds currently on sale for cash subscription may not be redeemed at
par prior to maturity except in the event of death as set forth in the regula
tions governing United States Savings Bonds*
Sec* 329*7© The following rules govern the exchange under this Subpart:
(1) The Series G bonds will be registered in the names of the owners of the
matured Bonds of Series E in any authorized form of registration; (2) Series G
bonds will be issued upon exchange ONLY in denominations of $$00, $1,000,
$5,000 and $10,000 (maturity value);
(3) The Bonds of Series E used in the
exchange must be presented to a Federal Reserve Bank or Branch or to the
Treasury Department, Washington 25, D* Co, not later than two calendar months
after the month of maturity and the bonds of Series G issued upon exchange will
be dated as of the first day of the month in which the Bonds of Series E
matured; but (1+) If an owner desires to accumulate a number of Bonds of
Series E for exchange to bonds of Series G in any authorized denomination set
forth in (2 ) he may accumulate such bonds during any twelve consecutive
calendar months and present them for exchange not later than two calendar
months after the month of maturity of the last bond in the group to be ex
changed and the Series G bonds issued upon such exchange will be dated on a
weighted average dating basis which will afford an adequate interest adjust
ment for the period during which the owner has accumulated the Bonds of Series
E for the exchange; and (5) Cash subscriptions in whole or in part will not
be accepted for the Series G bonds offered under this Subpart*
•a
Subpart D —
mm
Federal Income Tax«
Sec« 329.8« A taxpayer who has been reporting the increase in redemption
value of his Bonds of Series E, for Federal income tax purposes, each year as
it accrues, must continue to do so if he retains the bonds under Subpart B,
unless in accordance with income tax regulations (Regulations 111,
section 29*1*2-6 ) the taxpayer secures permission from the Commissioner of
Internal Revenue to change to a different method of reporting income from such
obligations. A taxpayer who has not been reporting the increase in redemption
value of such bonds currently for tax purposes may in any year prior to final
maturity, and subject to the provisions of section 1*2 (b) of the Internal
Revenue Code and of the regulations prescribed thereunder, elect for such year
and subsequent years to report such income annually. Holders of Bonds of
Series E who have not reported the increase in redemption value currently are
required to include such amount in gross income for the taxable year of actual
redemption or for the taxable year in which the period of extension ends,
whichever is earlier.
Sec, 329*9* Taxpayers who exchange their matured Bonds of Series E for
Series G bonds under the provisions of Subpart C must report the difference
between the purchase price of their Series E bonds and the maturity value
thereof in their returns for the year in which the bonds mature to the extent
to which such difference has not been reported in previous returns. The
interest payable on the Series G bonds issued upon exchange must be reported
as income for the taxable year in which received or accrued.
Sec* 329*10.
If further information concerning the income tax is desired,
inquiry should be addressed to the Collector of Internal Revenue of the
taxpayer^ district or to the Bureau of Internal Revenue, Washington 2£, D, C.
Subpart E — -General Provisions.
Sec. 329*11* Definition of terms.--(a) The term ’’Bonds of Series E ”
as used in these regulations includes all Bonds of Series E issued as United
States Defense Savings Bonds, United States War Savings Bonds and all those
issued as Series E savings bonds without special designation; (b) The term
’’owners” as used in these regulations includes registered owners, coowners,
surviving beneficiaries, next of kin and legatees of a deceased owner, and
persons who have acquired bonds pursuant to judicial proceedings against the
owner, except that judgment creditors, trustees in bankruptcy and receivers
of insolvents’ estates will have the right only to payment of Bonds of Series E
in accordance with the regulations governing United States Savings Bonds.
Sec. 329*12. Right to purchase Bonds of Series E and G currently.— The
amount of matured Bonds of Series E retained after maturity and the amount of
bonds of Series G issued upon exchange in accordance with these regulations
will not be included in the limitation on holdings applicable to the amount
of bonds of such series which may be purchased by an investor each calendar
year; except that nothing herein contained shall be construed to permit the
current purchase of savings bonds of Series E for the account of organizations
387
— !» -
and fiduciaries or the purchase of savings bonds of either series for the
account of persons who are not entitled to have them on original issue,
contrary to the provisions of the regulations governing United States Savings
Bonds.
Sec. 329*13« Modification of other circulars.— The provisions of these
regulations shall be considered as amendatory of and supplementary to the
offering circular for savings bonds of Series E (Department Circular No. 6S3
and its revisions), the offering circular for savings bonds of Series G
(Department Circular No. 6£d and its revisions) and the circular containing
the regulations governing United States Savings B o n d s ^ which circulars are
hereby modified to accord with the provisions hereof.
Sec. 329*lU* Other circulars generally applicable.— Except as provided
in these regulations, the circulars referred to in the preceding section will
continue to be generally applicable.
Sec. 329*15*
Supplements and amendments.— The Secretary of the Treasury
may at any time or from time to time supplement or amend the terms of these
regulations, or of any amendment or supplement thereto.
JOHN W. SNYDER
Secretary of the Treasury
y
The regulations currently in force governing United States Savings Bonds
are set forth in Department Circular No. £30, Sixth Revision* as amended,
ELI
Optional Xxtan.lon of United State* Saving* Bonds— «Serie* X
Table of Kedemptlon Value* and Inreatnent Tielda B e l a t i ^ to Xztended Bond*
Table for the 10 year extension period showing! (1 ) Bow bonds of Series X* by denominations» lnorease In redemption
▼alue during suocssslve half-year periods following date of original maturity; (2) the approximate investment yield on
the purchase price from issue date to the beginning of each half-year period; and (3) the approximate investment yield
on the current redemption value from the beginning of each half-year period to extended maturity* Tields are expressed
in terms of rate percent per annum» compounded semiannually*
Bxtended maturity value 413-33
Original maturity (or
face) value».».»»»»».* 10*00
Issue price..
7.50
Period after issue date
10
10
11
11
to 10 l/2
1/2 to 11
to 11 1/2
1/2 to 12
to 12 1 /2
1/2 to 13
to 13 1/2
1/2 to 1*!
to lH 1/2
1/2 to 15
to 15 1/2
1/2 to 16
to 16 1/2
1/2 to 17
to 17 1/2
1/2 to 18
to 18 1/2
l/2 to 19
to 19 1 /2
1/2 to 20
Approximate investment yields” !/
:(2) On purchase price!
(3 ) On current
500.00 1,000.00«
from original
1 redemption value froa
375.00
750 .00 »
issue date
i beginning of eaoh
half-year period
1
to beginning
t
to extended
of eaoh
i
half-year period *
saturlt
i
half-year period
i
500.00 1,000.00
a.9^
2*9
2 .9 2
2 . 38
1 .012.50
5 06 . 2 5
2
.8
6
1.025.00
512.50
2.9^
2.84
2*97
518*75 1.037.50
3*01
2.82
525.00 1.050.00
2 .gl
3*05
531.25 1.062.50
3*10
2*79
537.50 1.075.00
3*16
2*77
5* 3.75 1 .087.50
3*23
550.00 1 1 0 0 .0 0
2.75
3*32
1.112.50
556*25
2.7*
2.72
562.50 1.125.00
3.^3
3.56
1.137.50
2*71
568.75
2.69
575.00 1.150.00
3.73
3*96
1
1
6
2
.5
0
2.67
581*25
* .2 6
2.66
587*50 1.175.00
K
2b
2.70
600.00 1.200.00
K
21
2.75
613*33 1 ,226.67
Kil
626.67 1 .253.33
2.79
Kl2
6U0.00 1 ,280.00
2.83
133*33 f 55 T?S7 $ 133*33 $266 .¿ 7 $bb 6.67 *1 .333 .33 *
23*00 30*00
18*75 37.50
100*00
200*00
75.00 150*00
(l)Redemption values during eaoh
years.... 10.00
25.00 50.00
year..... 10.12
25*31 50.62
years».... 10.25 25.b2 51.25
years.... 10.37 25.9 *
51.87
12
years.... IO.5O
26.25
52.50
12
years. 10.62
26.56 53.12
13
years.... 10.75 26.87
53.75
5^.37
13
year..... 10.87 27.19
lU
years.... 11.00 27.50
55.00
lit
years.... 11.12 27.81
55.62
15
year.... . 11.25 28.12
56.25
15
years.... 11.37 28.U4
56.87
16
years.... U . 5 O
28.75 57.50
16
years.... 11.62
29.06 58.12
17
years.... 11.75
29.37 58.75
17
years..... 12.00 30.00 60.00
18
years.... 12.27
3O.67 61.33
18
years.... 12.53
31.33 62.67
19
year..... 12.80
32.00 6U .0 0
19
years..... 13.07 32.67 65.33
Extended Maturity value
(20 years from issue
date).............. . 13.33 33.33 66.67
100.00 200.00
101.25 202*50
102.50 205.00
103.75 207.50
105.00 210.00
106.25
212.50
107*50 215.00
108.75 217.50
110.00
111.25
112 . 5®
113.75
115.00
llb.25
220.00
222.50
225.00
227.50
230.00
232.50
117.50 235.00
120.00
122.67
2W.00
2^ 5.33
125.33 250.67
128.00 256.OO
130.67 261.33
133.33
266.67
.
.
653.33
1 .306.67
2.87
666.67
1 .333.33
2.90
Kos
TXT
1/
Calculated on basis of $ 1,000 bond (faee value).
CO
CO
Q?
HEXEASS, MORNING HMSPAFKES,
Tuesday» March 2?, 1951*
ffa® Secretary of the Treasury ainioutisel last evening that the tenders
for
$1,000,000,000, or thereabouts, of 91-day Treasury bills to be dated larch 29 and to
mature June 28, 1951, which were offered on larch 22, were opened at the Federal Ee~
serve Banks on
March 26.
The details of this issue are as follows*
Total applied for — $1,682,214.5,000
Total accepted
Average price
- 1,000,875,000 {includes $88,9itO,000 entered on a
-
99*619
non-c crapetitive basis and accepted in
full at the average price shown below)
Equivalent rate of discount approx, 1.50?$ per annum
Range of accepted competitive bids:
fligh
~ 99.650 Equivalent rate of discount approx,
- 99.633
«
»
«
»
«
bow
1,385$ per annum
1.531$ m
*
{là percent of the amount bid for at the low price was accepted)
Total
Federal Reserve
District______
Applied for
I 11,803,000
1 ,202,331,000
27.253.000
35.955.000
iU,3iiO,ooo
8.991.000
258,735,000
9.369.000
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St, Louis
Minneapolis
Kansas City
Dallas
11 ,808,000
565,831,000
12 ,253,000
35.955.000
lU,3Uo,ooo
8,991,000
21.1101.000
58.958.000
1*5 . 808,000
11,682,21*5,000
$1,000,875,000
3.117.000
TOTAL
$
21*2 , 015,000
9.369.000
3.117.000
29.987.000
21, 1*01,000
29.987.000
San Francisco
total
Accepted
390
TREA SU RY DEPARTM ENT
RELEASE MORNING NEWSPAPERS.,
Tuesday, March 27, 1951»
S-2637
The Secretary of the Treasury announced last evening that the
tenders for $1,000,000,000, or thereabouts, of 91-day Treasury bills
to be dated March 29 and to mature June 28, 1951, which were offered
on March 22, were opened at the Federal Reserve Banks on March 26.
The details of this issue are as follows:
Total applied for - $1,682,245,000
Total excepted
- 1,000,875,000 (includes $88,940,000
entered on a non-competitive
basis and accepted in full
at the average price shown
below)
Average price
- 99*61.9 Equivalent rate of discount approx,
1 .507$
annum
Range of accepted competitive bids:
High
- 99.650 Equivalent rate of discount approx,
Low
- 99.613 Equivalent rate of discount approx,
1.385$ per annum
1 .5 3 1 #
per annum
(l4 percent of the amount bid for at the low price was accepted)
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Total
Accepted
Total
Applied for
Federal Reserve
District
$
1,202,331,000
27,253,000
11,808,000
565.831.000
12,253,000
35.955.000
14.340.000
35.955.000
Ì4,240,000
11, 808,000
$
8,991,000
8.991.000
258,735,000
242.015.000
9.369.000
9.369.000
3.117.000
29.987.000
3.117.000
21.401.000
58.958.000
29.987.000
21.401.000
45.808.000
$1,682,245,000
$1,000,875,000
0 O0
There is full warrant in the Revenue Service
record for every taxpayer to accept that assurance
as an established fact.
Bringing chiselers to justice
has always been the Service’s determined policy, and
continues to be its pledge.
\n
pc *
available to complaining citizens, it would be well
to make them available at least once a year.
Such
a step should have a very healthy effect indeed on
the law enforcement problem.
We already have taken note of much of the infor
mation brought out in your public hearings which
might indicate a need for further Bureau of Internal
Revenue investigation.
If the Committee has data
which has not been publicly disclosed and which
might assist us in tax law enforcement, v/e ».mall
welcome action by you to make it available co us.
\;
_
Our common purpose is to protect a priceless
national asset.
That asset is public confidence that
the affairs of Government, and in particular the
affairs of the Internal Revenue Service, are being
properly conducted.
The responsibility for keeping
this confidence inviolate rests upon us all.
We in the Treasury and the Internal Revenue
Service give our best efforts to the preservation
and strengthening of that confidence.
We have every
official reason and every personal reason to do so.
On the personal score we share the concern of
every American for the safety of the country and the
preservation of our liberties.
And we know that our
success in collecting the huge revenues required for
national defense is dependent in tremendous measure
on every honest taxpayer having assurance that the
Revenue Service v/ill leave nothing undone to bring
chiselers to justice.
Let me add my commendation of the results of
the Committee’s endeavors.
The program you have
followed toward the goal of exposing corruption,
immorality and illegality has been truly an enlight
ened one.
I think your work has contributed to public
morale, and has heartened public officials.
heartily favor the idea of this Committee continuing
its inquiries and its reports to the public to what
ever extent the members feel they can spare the
necessary time from their other very onerous and
very important duties and obligations.
If your work
is continued, you may count on the Treasury giving
you its fullest further cooperation.
I want to say here that I share the views ex
pressed yesterday by Attorney General McGrath on the
proposal which has been made for the creation of a
permanent crime commission.
It is my belief that this
step would tend undesirably to relieve local author
ities of responsibility for law enforcement, and
would tend toward the creation of a national police
system _ something never contemplated in the basic
legal framework of the Government.
I think, too, that the Attorney General was on
sound ground in pointing to the availability of Fed
eral grand juries to hear citizens’ complaints
against criminals.
I agree with him, further, that
in areas where State grand juries are not readily
To facilitate our increased work load in the
organized crime field the Bureau of Internal Revenue
is preparing to create a Special Fraud Section, the
expert personnel of which will center its attention
on the tax accounts of gamblers, racketeerga^d others
tarimi»Tin1*-!
The purpose of tljfs^Fraud
Section, plans for which will be described for you
more fully by Commissioner Schoeneman, is to
streamline our effort against professional crime s
tax evaders, at the same time interfering as little
as possible with the work of other Bureau of Internal
Revenue agencies in their^Fe^iif tax collecting and
auditing responsibilities.
?PX
-fService, I feel at liberty to quote from a report made
three years ago to the Joint Co|nmittee on Internal
Revenue Taxation by an Advisory Group appointed
pursuant to Public Law 147 of the 80tn Congress«
The Advisory Group said:
MWe believe that the standards of integrity main
tained by the Bureau in the conduct of the Government’s
business are of a very high order«
This is truly
remarkable in view of the size and decentralized
character of this organization and the inherent na
ture of tax determination, which continuously provides
opportunities for lesser standards.
Honesty is not
the only course open to thousands of Bureau employees,
yet few choose to follow any other.”
It is unfortunate that any of the employees of
the Internal Revenue Service should depart from the
strict rules of conduct and integrity which is the
standard of the Internal Revenue Service.
It is a
tribute to that service with its force of over 55,000
employees that only an infinitesimal number should
fail to meet those high standards.
The information given to the public by this Com
mittee in recent months on the spread of organized
crime through this country must have impressed/a
great many persons with the thought that the burden
of the Revenue Service in enforcing the tax laws
against criminals has enormously increased.
But let
me assure you that in the three years since the Advisory
Group reached its conclusions, the honesty and fidelity
of the Bureau employees who shoulder this burden
have
not decreased.
racketeering days.
I might note that Ralph Capone
and Samuel Beard are in serious trouble with the Rev
enue Service again today, as repeat performers.
As the progress of the current investigations is
revealed in tax liens and indictments agains^/ the law
violators, I think it will be agreed that the Revenue
Service continues to obtain real results in bringing
tax evaders of the racketeer class to justice.
The
experience of your Committee indicates the difficulty
in obtaining information from this class of law
violators.
It takes months, and sometimes years, for
the Internal Revenue investigators to obtain the
kind of information needed befo re
succgsyul^pros e-
cution can be had. , Th5^rndictments do come m
due
/■v
A few months ago, this Committee disclosed cer
tain matters relating to the conduct of a few —
few —
a very
Bureau of Internal Revenue employees in
California.
As the Committee is aware, the Treasury
thereupon stated publicly that these matters had been
under investigation by Revenue prior to the Committee’s
disclosures.
Our investigation continued, and the
one employee and one former employee involved were
indicted by a California grand jury last week.
In my five years as Secretary of the Treasury, I
have found the honesty of Revenue Service employees
to be beyond question.
few.
The exception^ are few —
very
On the point of integrity in the Internal Revenue
r? A third would make it a felony, instead of a
misdemeanor, to willfully fail to file an income
tax return or to willfully fail to keep the proper
books and records.
In this connection, it has been
suggested that the Federal tax laws be amended to
specify in greater detail the required types of
books and records.
One more suggestion has been that Revenue agents
be permitted, in cases of suspected tax evasion, to
examine the books and records of taxpayers prior to
the due date for filing a return.
gm I referred earlier to the fact that the respon
sible officials of the Revenue Service are at your
service to give the Committee detailed information,
if desired.
-
rf -tlioso io asy i.ni
forua'bB.W"
J
1 .... ffiaar 1 n 11 t
-
Commis-
w 1.'"»g"
sioner Schoeneman is here today to give you precise
data on the scorecard of the Revenue Service as to
the collection of the taxes of known gamblers and
racketeers, and the steps taken against tax evaders
among these people.
I think you will find ii^this
information adequate proof that the warfare of the
Bureau of Internal Revenue against major league crim
inals did not end with its successful attacks on
A1 Capone, Ralph Capone, William R. Skidmore, Nucky
Johnson, William R. Johnson, Irving Wexler, Jimmy
LaFontaine, Samuel Beard and their kind of earlier
X
JLd(L,
W
7 &
¿*^^***
Ip-
-
S e r v i c e has b e e n doing,
a nd is doing,
t he i n come t a x r e t u r n s ox racketeers,
to c h e c k o n
g a m b l e r s and
o t h e r m e m b e r s of the c r i m i n a l class.
g r a n t e d? 3 he C o m —
m i s s ioner a n ^ h ^ s ^ o c i a t < ^ _ h a v e
r ^ r i e w e ^ f o r the
Subcommittee the r e c o r d of the R e v e n u e S e r v i c e in
A
this a r e a of e n f o r c e m e n t of the t a x laws.
committee
T he S u b
.has indi
s1f|" 1
c a t e d that it w i l l go into this e n t i r e s u b j e c t
e x h a u s t i v e manner.
J t j ^ ^ a> a r e a ?
in an
1 m i g h t remark,
w h i c h t h e S l B B ^ S e # long s i n c e came to r e c o g n i z e as one
in w h i c h the m a i n t e n a n c e of its r e p u t a t i o n for p r o p e r
p u b l i c s e r v i c e r e q u i r e s the m o s t d i l i g e n t efxorc.
In s e s s i o n s w i t h the H o u s e S u b c o m m i t t e e ,
R e v e n u e o f f i c i a l s just
the
last w e e k e x p l o r e d the p o s
s i b l e n e e d of a d d i t i o n a l
l e g i s l a t i o n to s t r e n g t h e n
the h a n d s of e n f o r c e m e n t o f f i c e r s a g a i n s t g a m b l e r s
and racketeers.
T h e C h a i r m a n of the S u b c o mmittee,
R e p r e s e n t a t i v e King,
a n n o u n c e d last T h u r s d a y c e r t a i n
l e g i s l a t i v e fiel d s w h i c h are b e i n g reviewed.
One s u g g e s t i o n w h i c h h a s b e e n m a d e
s t a t e m e n t of assets and liabilities,
worth,
is that a
to s h o w net
be r e q u i r e d in c o n n e c t i o n w i t h the income tax
r e t u r n s of i n d i v i d u a l s d e r i v i n g t h eir income c h i e f l y
f r o m s o u r c e s o t h e r t h a n wages.
A n o t h e r is that the s t a t u t e s of l i m i t a t i o n s
should run until six years
t h ree y e a r s
i n s t e a d of the p r e s e n t
in c a ses of w i l l f u l f a i l u r e to file an
inco m e t a x return.
The processing and bookkeeping operations that
the Revenue Service must perform annually are on a
tremendous scale.
This is all in addition to en
forcement work.
By lav/, income tax records, returns and reports
may not be disclosed to the public.
But there are
other provisions of law which make it possible for
the Revenue Service to make returns and reports
available to appropriate committees of Congress while
in executive session.
In the course of this Committee’s endeavors,
there have been made available to it under executive
order thousands of individual income tax returns
from Revenue Service files of the last ten years.
In instances where investigations had been made, the
reports of the investigators also were made avail
able.
The Committee had thè option of asking for
other returns and reports in the Bureau’s possession.
Last year a Subcommittee of the House Ways and
Means Committee was established to inform that Com
mittee and the Congress regarding the day-by-day
work of the Revenue Service.
This Subcommittee is a
continuing group with which the Commissioner and
other Revenue officials met last^December and again
more recently.
These hearings have been in executive
session —— and therefore completely without
restraint —— and have afforded the Commissioner an
opportunity to tell specifically what the Revenue
_ i?j(34 «]
o f X Í C jLais
of
Treasury
¿A-
have Appeared before
c
answeic your /'questions
and
its/component
cene:
to presfent statements an
Ju.
and the. rpeopl* of thfxs cduntryj
Your/Commit
Le Inte;
/Shota Id knlbw a b o u
mis
its opei
very preservation!
of/that
our
Federal Revenue*System.
The Government looks to all taxpayers to assess
themselves voluntarily, and to pay their taxes with
out compulsion.
The voluntary system will continue
to be successful only so long as the public is
assured —
and it can be assured —
that the Internal
Revenue Service is doing a good honest job.
It is moslfcpimportant to remember that the In
ternal Revenue Senviase is basically a serv¿ ^ ^ Qr^al3~~
ization. During the fiscal year 1951, the^ilevenue
is charged with the collection of nearly
48 billion dollars of tax revenues.
In order to make
4
A-r _
these collections,
must administer not only, the
individual income tax, but also 78 other separate internal revenue levies.
I shall not go into great detail as to the many
tasks the Internal Revenue Service is required to
■ 7 %
Should the Committee desire information which* because of
re s tric tio n s imposed on us by law, we cannot supply to you
in open session , we sh a ll be glad to supply i t in executive
session*
I want to speak p a rticu la rly today about the manner in which
the Bureau of Internal Revenue enforces the in cane tax laws.
Your Committee and the people of this country are e n titled
to the fu lle s t fa c ts about
the In tern al Revenue Service aid i t s
operations* Confidence in the proper functioning of that
Service
is v i t a l to the very preservation of the Federal Revenue System#
so*
2-
The enforcement work of the Bureau of Narcotics is directed
against
i l l i o i t tr a ffic k e rs in n arcotic drugs.
The agents of the United States S ecret Service
charged
are
with protecting the President and his immediate family,
and the suppression of counterfeiting and forgery of obligations
of the Government.
As part o f it s function of co llectin g import d u ties,
the
Bureau of Customs
enforc^ the laws against smuggling*
The United States Coast Guard enforces maritime law, and
copperatea with
other Treasury enforcement agencies.
Your Committee not only heard the e a r lie r statements
by
various Treasury enforcement o ffic ia ls to which I have referred ,
but has had am i lab le to i t further information from our
personnel and our reco rd s. I tr u s t that th is cooperation
the Treasury has been helpful to you in your very worthwhile
investigat ions.
In addition to my own remarks today, the Commissioner
of Internal Revenue and the Commiesicner of Narcotics u « 8 M n ; will)
at the request of your Chairman, *•
data
give the Committee further
on the enforcement tasks which they d ir e c t.
|
Washington
Statement of Secretary of the Treasury John W* Snyder
Before the Senate Sp ecial Committee to
Investigate Organized Crime in
In te rsta te Commerce, Tuesday,
March 27, 1951
The Treasury Department is pleased
to have th is further
opportunity to cooperate with the Senate Committee established
to investigate organized crime in in te rs ta te commerce.
A ll honest men endorse the purpose of this Committee to stamp
out crime
and a l l of it s e v il e ffe c ts *
At the outset of the Committee^5 a c t iv i t i e s , Treasury
o ffic ia ls appeared before you and described the manner in which
the Department’ s law enforcement re sp o n sib ilitie s in various
fie ld s are carried out* I s h a ll outline these fie ld s again
only very b r ie fly ,in the present statement.
The agencies which
operate in V f e jt ' Hold a a re, broadly speaking,
A
and th e ir duties are highly specialized*
fiv e in number,
The Bureau of Internal Revenue, acting par t i cula r lx , through
it s In tellig en ce Unit and the Alcohol Tax Uni t ,
revenues
ill1 I In
TJBTTPi(l||ilm
1....
protects the 7 ^
The In tellig en ce Unit
investigata^s»i§L suspected cases of fraudulent evasion
of the income ta x e s. The Alcohol Tax Unit
has the task
suppressing the non-tax-paid liquor tr a f f ic *
of
404
TREASURY DEPARTMENT
Washington
Statement of Secretary of the Treasury John W. Snyder
Before the Senate Special Committee to
Investigate Organized Crime in
Interstate Commerce, Tuesday,
March 27, 1951
The Treasury Department is pleased to have this further opportunity
to cooperate with the Senate Committee established to investigate
organized crime in interstate commerce* All honest men endorse the purpose
of this Committee to stamp out crime and all of its evil effects«
At the outset of the Committee»s activities, Treasury officials appear
ed before you and described the manner in which the Department»s law
enforcement responsibilities in various fields are carried out* I shall
outline those fields again only very briefly in the present statement«
The agencies which operate in them are, broadly speaking, five in number,
and their duties are highly specialized.
The Bureau of Internal Revenue, acting particularly for enforce
ment purposes, through its Intelligence Unit and the Alcohol Tax Unit,
protects the Federal revenues« The Intelligence Unit investigates sus
pected cases of fraudulent evasion of the income taxes« The Alcohol
Tax Unit has the task of suppressing the non-tax-paid liquor traffic.
The enforcement work of the Bureau of Narcotics is directed against
illicit traffickers in narcotic drugs.
The agents of the United States Secret Service are charged with
protecting the President and his immediate family, and the suppression
of counterfeiting and forgery of obligations of the Government.
As part of its function of collecting import duties, the Bureau of
Customs enforces the laws against smuggling.
The United States Coast Guard enforces maritime law, and cooperates
with other Treasury enforcement agencies.
Your Committee not only heard the earlier statements by various
Treasury enforcement officials to which I have referred, but has had
available to it further information from our personnel and our records.
I trust that this cooperation by the Treasury has been helpful to you in
your very worthwhile investigations.
In addition to my own remarks today, the Commissioner of Internal
Revenue and the Commissioner of Narcotics will, at the request of your
Chairman, give the Committee further data on the enforcement tasks
which they direct.
S-2638
405
-
2
-
Should the Committee desire information which, because of restric
tions imposed on us by law, we cannot supply to you in open session,
we shall be glad to supply it in executive session*
I want to speak particularly today about the manner in which the
Bureau of Internal Revenue enforces the income tax laws*
Your Committee and the people of this country are entitled to the
fullest facts about the Internal Revenue Service and its operations*
Confidence in the proper functioning of that Service is vital to the
very preservation of the Federal Revenue System*
The Government looks to all taxpayers to assess themselves volun
tarily, and to pay their taxes without compulsion* The voluntary system
will continue to be successful only so long as the public is assured —
and it can be assured — that the Internal Revenue Service is doing a
good honest job*
It is most important to remember that the Internal Revenue Bureau
is basically a service organization* During the fiscal year 19i>l, the
Commissioner of Internal Revenue is charged with the collection of
nearly 1*8 billion dollars of tax revenues* In order to make these
collections, he must administer not only the individual income tax, but
also 78 other separate internal revenue levies*
I shall not go into great detail as to the many tasks the Internal
Revenue Service is. required to perform in the collection of the revenue*
The processing and bookkeeping operations that the Revenue Service
must perform annually are on a tremendous scale* This is, all in
addition to enforcement work*
By law> income tax records, returns and reports may
closed to the public* But there are other provisions of
make it possible for the Revenue Service to make returns
available to appropriate committees of Congress while in
session.
not be dis
law which
and reports
executive
In the course of this Committee^ endeavors, there have been made
available to it under executive order thousands of individual income
tax returns from Revenue Service files of the last ten years* In
instances where investigations had been made, the reports of the in
vestigators also were made available* The Committee had the option of
asking for other returns and reports in the Bureaufs possession*
Last year a Subcommittee of the House Ways and Means Committee was
established to inform that Committee and the Congress regarding the dayby-day work of the Revenue Service* This Subcommittee is a continuing
group with which the Commissioner and other Revenue officials met last
4 06
- 3 December and again more recently* These hearings have been in executive
session — and therefore completely without restraint — and have af
forded the Commissioner an opportunity to tell specifically what the
Revenue Service has been doing, and is doing, to check on the income
tax returns of racketeers* gamblers and other members of the criminal class#
The Comissioner and his associates have reviewed for the Subcommittee
of the Ways and Means Committee the record of the Revenue Service in this
area of enforcement of the tax laws# The Subcommittee has indicated that
it will go into this entire subject in an exhaustive manner# It is an
area, I might Remark, which the Bureau of Internal Revenue long since
came to recognize as one in which the maintenance of its reputation for
proper public service requires the most diligent effort#
In sessions with the House Subcommittee, the Revenue officials just
last week explored the possible need of additional legislation to
strengthen the bands of enforcement officers against gamblers and
racketeers# The Chairman of the Subcommittee, Representative King,
announced last Thursday certain legislative fields which are being re
viewed#
One suggestion which has been made is that a statement of assets
and liabilities, to show net worth, be required in connection with the
income tax returns of individuals deriving their income chiefly from
sources other than wages®
Another is that the statutes of limitations should run until six
years instead of the present three years in cases of willful failure to
file an income tax return#
A third would make it a felony, instead of a misdemeanor, to
willfully fail to file an income tax return or to willfully fail to
keep the proper books and records* In this connection, it has been
suggested that the Federal tax laws be amended to specify in greater
detail the required types of books and records#
One more suggestion has been that Revenue agents be permitted, in
cases of suspected tax evasion, to examine the books and records of tax
payers prior to the due date for filing a return#
These and other proposals for new legislation will be developed
more fully in the course of the Subcommittee *s continued studies©
I referred earlier to the fact that the responsible officials of
the Revenue Service are at your service to give the Committee detailed
information, if desired# Commissioner Schoeneman is here today to give
you precise data on the scorecard of the Revenue Service as to the
collection of the taxes of known gamblers and racketeers, and the steps
taken against tax evaders among these people# I think you will find in
this information adequate proof that the warfare of the Bureau of Internal
Revenue against major league criminals did not end with its successful
attacks on A1 Capone, Ralph Capone, William R* Skidmore, Nucky Johnson,
William R* Johnson, Irving Wexler, Jimmy LaFontaine, Samuel Beard and their
kind of earlier racketeering days* I might note that Ralph Capone and
Samuel Beard are in serious trouble with the Revenue Service again today,
as repeat performers.
As the progress of the current investigations is revealed in tax liens
and indictments againstthe law violators, I think it will be agreed that
the Revenue Service continues to obtain real results in bringing tax
evaders of the racketeer class to justice* The experience of your Committee
indicates iihe difficulty in obtaining information from this class of law
violators* It takes months, and sometimes years, for the Internal Revenue
investigators to obtain the kind of information needed before a successful
prosecution can be had* The important fact is that the indictments do
come in due course.
A few months ago, this Committee disclosed certain matters relating
to the conduct of a few
a very few -«• Bureau of Internal Revenue employees
in California. As the Committee is aware, the Treasury thereupon stated
publicly that these matters had been under investigation by Revenue prior
to the Committee’s disclosures. Our investigation continued, and the one
employee and one former employee involved were indicted by a California
grand jury last week.
In my five years as Secretary of the Treasury, I have found the honesty
of Revenue Service employees to be beyond question. The exceptions are
few — very few. On the point of integrity in the Internal Revenue Service,
I feel at liberty to quote from a report made three years ago to the Joint
Committee on Internal Revenue Taxation by an Advisory Group appointed
pursuant to Public Law llt7 of the 80th Congress* The Advisory Group said:
’W e believe that the standards of integrity maintained by the Bureau
in the conduct of the Government’s business are of a very high order.
This is truly remarkable in view of the size and decentralized character
of this organization and inherent nature of tax determination, which
continuously provides opportunities for lesser standards. Honesty is not
the only course open to thousands of Bureau employees, yet few choose to
follow any other.”
It is unfortunate that any of the employees of the Internal Revenue
Service should depart from the strict rules of conduct and integrity which
is the standard of the Internal Revenue Service. It is a tribute to that
service with its force of over ££,000 employees that only an infinitesimal
number should fail to meet those high standards.
The information given to the public by this Committee in recent months
on the spread of organized crime through this country must have impressed
-
5
-
a great many persons with the thought that the burden of the Revenue Service
in enforcing*ihe tax laws against criminals has enormously increased. But
let me assure you that in the three years since the Advisory Group reached
its conclusions, the honesty and fidelity of the Bureau employees who
shoulder this;burden have not decreased.
\
To facilitate our increased work load in the organized crime field
the Bureau of!Internal Revenue is preparing to create a Special Fraud
Section, the expert personnel of which will center its attention on the
tax accounts of gamblers, racketeers and others of their kind. The purpose
of this Special Fraud Section, plans for which will be described for you
more full^ by ^Commissioner Schoeneman, is to streamline our effort against
professional crime*s tax evaders, at the same time interfering as little
as possible with the work of other Bureau of Internal Revenue agencies
in their regular tax collecting and auditing responsibilities.
Let me add my commendation of the results of the Committee*s^endeavors*
The program you have followed toward the goal of exposing corruption,
immorality and illegality has been truly an enlightened one. I think^your
work has contributed to public morale, and has heartened public officials.
I heartily favor the idea of this Committee continuing its inquiries and
its reports to the public to whatever extent the members feel they can spare
the necessary time from their other very onerous and very important duties
and obligations. If your work is continued, you may count on the Treasury
giving you its fullest further cooperation.
I want' to say here that I share the views expressed yesterday by
Attorney General McGrath on the proposal which has been^made for the
creation of a permanent crime commission. It is my ^belief that this
step would tend undesirably to relieve local authorities of responsibility
for law enforcement, and would tend toward the creation of a national
police system — something never contemplated in the basic legal frame
work of the Government.
I think, too, that the Attorney General was on sound ground in point
ing to the availability of Federal grand juries to hear citizens» complaints
against criminals. I agree with him, further, that in areas where State
grand juries are not readily available to complaining citizens, it would
be well to make them available at least once a year* Such a step should
have a very healthy effect indeed on the law enforcement.problem.
We already have taken note of much of the information brought out in
your public hearings which might indicate a need for further Bureau of
Internal Revenue investigation. If the Committee has data which has not
been publicly disclosed and which might assist us in tax law enforcement,
we shall welcome action by you to make it available to us.
•• 6 •»
Our common purpose is to protect a priceless national asset* That
asset is publi® confidence that the affairs of Government, and in par
ticular the affairs of the Internal Revenue Service, are being properly
conducted* The responsibility for keeping this confidence inviolate
rests upon us all*
We in the Treasury and the Internal Revenue Service give our best
efforts to the preservation and strengthening of that confidence* We
have every official reason and every personal reason to do so*
On the personal score we share the concern of every American for
the safety of the country and the preservation of our liberties. And
we know that our success in collecting the huge revenues required for
national defense is dependent in tremendous measure on every honest
taxpayer having assurance that the Revenue Service will leave nothing
undone to bring chiselers to justice.
There is full warrant in the Revenue Service record for every tax
payer to accept that assurance as an established fact# Bringing chiselers
to justice has always been the Service’s determined policy, and continues
to be its pledge*
0O0
- 3 -
g&LPHik
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|2 and 117 (a) (!)
the Internal Revenue Code,
as amended by Section 115 of the Revenue Act of 19Ul, the amount of discount at
which bills issued hereunder are sold shall not be considered to accrue until
such bills shall be sold, redeemed or otherwise disposed of, and such bills are
excluded from consideration as capital assets.
Accordingly, the owner of
Treasury bills (other than life insurance companies) issued hereunder need 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. Ul 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
-
'ALPHA
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 shallj
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
April 5* 195*_____
>
in cash or other imedia^ely-aVail
able funds or in a like face amount of Treasury bills maturing April
Cash and exchange tenders will receive equal treatment.
Cash adjustments will tj
made for differences between the par value of maturing bills accepted in exchang!
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 he exempt
all taxation now or hereafter imposed on the principal or interest thereof by
FOR RELEASE, MORNING NEWSPAPERS,
Thursday, March 29. 1951_____ _*
The Secretary of the Treasury, by this public notice, invites tenders for
en 000 000.000
. nr thereabouts, of
91
“da^ Treasury bills, for cash and
T
***
in oynhnngp. for Treasury bills maturing
April W
+
*
Wj i <?sued on
------ ’
a discount basis under competitive and non-competitive bidding as hereinafter
provided.
iri-n mature
The bills of this series vri.ll be dated ,,.APril
July 5, 1951
■"
interest.
"
^
, when the face amount will be payable without
"*"'*'*‘ '
They will be issued in bearer form only, and in denominations of
$ 1 ,000, $ 5 ,000, $ 10,000, $ 100,000, $ 500,000, and $ 1 ,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the
closing hour, two o'clock p.m., Eastern Standard time,Monday, April 2, 1223=---•
Tenders will not be received at the Treasury Department, Yfashington.
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 Treasury bills applied for,
TREASURY DEPARTMENT
Information Service
WASHINGTON. D
413
R E L E A S E M O R N I N G N EWSPAPERS,
Thursday, M a r c h 29, 1951-
S-2639
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
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
A p r i l 5, 1951, to be issu e d on a d i s c o u n t b a s i s . u n d e r c o m p e t i t i v e
and n o n - c o m p e t i t i v e bidding-as. h e r e i n a f t e r p r o vided.
The b i lls of
this series w i l l be d a t e d A p r i l 5, 1951, a n d w i l l m a t u r e J u l y 5,
1951, 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 i s s u e d in b e a r e r f o r m only, an d in d e n o m i n a t i o n s of
$ 1 , 000, $ 5 , 000, $ 10 , 000, $ 100 ,000, $ 500 ,000, a n d $ 1 , 000,000
( m a turity 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 Banks, and
Br 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
St a n d a r d time, Monday, A p r i l 2, 1951.
Tenders w i l l not be r e c e i v e d
at the T r e a s u r y 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
an 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 ice o f f e r e d m u s t be e x p r e s s e d on the b a sis of 100 , w i t h not
more t h a n three d e c i m a l s > e. g., 9 9 . 9 2 5 . F r a c t i o n s m a y not be
used.
It is u r g e d that tenders be m a d e on the p r i n t e d forms and
f o r warded 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 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 on a p p l i c a t i o n therefor.
Othe r s tha n b a n k i n g i n s t i t u t i o n s w i l l n ot be p e r m i t t e d to
submit tenders e x c e p t for their ow n account.
T e n d e r s w i l l be
r e c eived w i t h o u t d e p o s i t f r o m i n c o r p o r a t e d b a n k s a nd trust
companies an d 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 a l e r s in invest-’
ment s ecurities.
T e n ders from others m u s t be a c c o m p a n i e d by
payment 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 b y a n e x p r e s s g u a r a n t y
of paymert 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 c l o s i n g hour, t e n ders 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 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 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 an d p r i c e range of a c c e p t e d bids.
Those s u b m i t t i n g t e nders
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 etary 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 i n
any such r e s p e c t shall be final.
S u b ject 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 $ 200,000 or less w i t h o u t stat e d price
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 p r i c e
2
(in three decimals) of accepted competitive bids. Settlement for
accepted tenders in accordance with the bids must be made or
completed at the Federal Reserve Bank on April 5* 1951*
cash
or other immediately available funds or in a like face amount of
Treasury bills maturing April 5# 1951» 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 pf the new bills.
The income derived from Treasury bills, whether interest or
gain from the sale or other disposition of the bills, shall not
hato any^exemption, as such, and loss from the sale or other
disposition of Treasury bills shall not have any special treat
ment, 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. Und&r Sections 42 and 117
(a) (l) of the Internal Revenue Code, as amended by Section 115
of the Revenue Act of 1941, the amount of discount at which bills
issued hereunder are sold shall not be considered to accrue until
such bills shall be sold, redeemed or otherwise disposed of, and
such bills are excluded from consideration as capital assets.
Accordingly, the. owner of Treasury bills (other than life
insurance companies) issued hereunder need include in his income
tax return only the difference between the price paid for such
bills, whether on original issue or on subsequent purchase, and
the amount actually received either upon sale or redemption at
maturity during the taxable year for which the return is made, as
ordinary gain or loss.
Treasury Department Circular Wo. 4l8, as amended, and this
notice, prescribe the terms of the Treasury bills.and govern the
conditions of their issue. Copies of the circular may be obtained
from any Federal Reserve Bank or Branch.
0 O0
-2«
in the country would develop Defense Day programs.
Atlanta*s
ceremony will be dedicated to Georgia* s wounded veterans of the
Korean action*
Defense Bond Month will see the distribution of 2$ million
Defense Bond pledge-order forms by the nation* s newspaper boys*
The pledge-order forms will ask subscribers to purchase an extra
bond during the period*
Other youth groups, including the Boy Scouts of America,
will share in the bond sales promotion*
Duy Oeuuts will distribute
The May 1 opening coincides with the tenth anniversary of
the Series E Bond Pros?ram.which was begun in 19ill*
On— ■tho-eomo
date the Treas
these bonds wi
elect to keep
redeem them fc
offers currenl
ten years, th^
his origina^, investment.
,nal
_
over
A * * '
FOR RELEASE;THURSDAY, March 29j
£ -
*
i M o
The first Defense Bond sales promotion campaign in the national
emergency will be launched in Atlanta, Georgia, April 30, Secretary
of the Treasury John W. Snyder announced today.
The Secretary said that May will be Defense Bond Month in America
and that the sales effort had two objectives - to increase the scope
of the Payroll Savings Plan for the regular purchase of Defense Bonds
and make it available to employees of stores and offices as well as
industrial plants, and to sell as many «extra” Defense Bonds as possible.
Special «Defense Day” ceremonies have been planned by a committee
of industrial, business and labor leaders in Atlanta to commence the
national campaign«
Robert S. lynch, General Chairman of Atlanta *s «Defense Day«
committee, and President of the Atlantic Steel Company in Atlanta,
)
*9
said that the full days* activity was being planned to «effectively
A
dramatize the vitally^importan t Defense Bond Program and successfully
inaugurate it for the nation.«
✓/
«We are croud to undertake the first Defense Day in ■the--c o m try»
lynch said^
Defense "Bonds have an exceedingly important
role in the national emergency and offer eveiy citizen an opportunity
for patriotic action.«
lynch, who was in Washington to extend the Secretary a personal
invitation to the Atlanta program, expressed the hope that other cities
416
RELEASE MORNING NEWSPAPERS,
Thursday, March 29, 1951»
V.-2DT0
Th© first Defense Bond sales promotion campcuign in th©
national emergency will he launched in Atlanta, Georgia,
April 30, Secretary of the Treasury John W. Snyder announced
today.
The Secretary said that May will he Defense Bond Month in
America and that the sales effort had two objectives — to
increase the scope of the Payroll Savings Plan for the regular
purchase of Defense Bonds and make it available to employees of
stores and offices as well as industrial plants, and to sell as
many "extra" Defense Bonds as possiole.
Snpcial "Defense Day" ceremonies have been planned oy a
committee of industrial/business and labor leaders in Atlanta
to commence the national campaign.
Robert S. Lynch, General Chairman of Atlanta's "Defense Day"
committee, and President of the Atlantic Steel Company in Atlanta,
said that the full day's activity is being planned to effectively
dramatize the vitally-important_Defense Bond Program and successfully inaugurate it for the nation."
"We are proud to undertake the first Defense Day," Lynch
said. "We recognize the fact that Defense Bonds have an
exceedingly important role in the national emergency and offer
every citizen an opportunity for patriotic action.
Lvnch, who was in Washington to extend the Secretary a
personal invitation to the Atlanta program, expressed the hope
that other cities in the country would develop Defense Day
programs. Atlanta’s ceremony will^be dedicated to Georgia s
wounded veterans of the Korean action.
Defense Bond Month will see the distribution of 25 million
Defense Bond pledge-order forms by the nation's newspaper boys,
The pledge-order forms will ask subscribers to purchase an extra
bond during the period.
Other youth groups, including the Boy Scouts of America,
will share in the bond sales promotion.
The May 1 opening coincides with the tenth anniverary of the
Series E Bond Program, which was begun in 19^1.
oOo
T f ^
Secretary of the Treasury John W. Snyder a n
nounced today that the Boy Scouts of America had
volunteered to distribute 1,200,000 U. S. Defense
Bond posters this spring as a public service effort.
The posters wil-1 be placed in retail stores.
Distribution will commence in the early part
of May in suburban areas throughout the nation.
In a letter to Amory Houghton, President of
the Boy Scouts of America,
Corning, N. Y . , the
Secretary said that the U. S. Savings Bonds Division
is greatly indebted to the Boy Scouts for their
assistance.
- 0O 0 -
T R E A S U R Y D E P A R T M E N T ________
Information Service
W a s h i n g t o n , d .c .
418
IMMEDIATE RELEASE,
Thursday. March 29» 195Ì*
S-2641
Secretary of the Treasury John ¥. Snyder
announced today that the Boy Scouts of America
had volunteered to distribute 1,200,000 V. S.
Defense Bond posters this spring as a public
service effort.
The posters will be placed
in retail stores.
Distribution will commence in the early
part of May in suburban areas throughout the
nation.
In a letter to Amory Houghton, President
of the Boy Scouts of America, Corning,
New York, the Secretary said that‘the U. S.
Savings Bonds Division is greatly indebted
to the Boy Scouts for their assistance.
0O0
J*
E l  è i NQUXK0 H ÄSPAISSS,
f
Xn— day> t e il 3. M I » ___
the Secretary of the treasury announced last evening that the traders for
§1,000,000,000, or thereabouts, of 91~dsy Treasury bills to be dated April 5 and to
nature July 5, 1951, which were offered on March 29, were opened at the Federal
Reserve Banks on April 2«
The details of this issue are as follows*
Total applied for - §1,642,994,000
Total accepted
- 1,001,004,000 (includes §98,071,000 entered on a
non-competitive basis and accepted in
full at the average price shown below)
Average price
- 99*617 Equivalent rate ©f discount approx» 1.517$ per annua
Range of accepted competitive bids* (excepting one tender of §100,000)
nigh
- 99*630 Equivalent rate of discount approx. 1.464$ per annua
low
- 99.614
(95 percent of the
t
*
*
e
»
*
amount bid for at the low price was accepted)
Federal Reserve
District
Total
Applied for
Total
Accented
Beaton
§
5 , 9 1 0,000
1 ,172 ,863,000
I
Raw York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St* louis
Minneapolis
Kansas City
Dallas
San Francisco
Total
1*527$ "
26 ,636,000
5,W ),000
624,663,000
11 ,636,000
205 ,550,000
13.536.000
3,183,000
74,3U,000
U.,837,000
7.630.000
139,300,000
11.431.000
2 .948.000
31 .322.000
31 ,408,000
31 .322.000
21 ,308,000
58.678,OOP
58.678.000
§1,642,994,000
81,001,004,000
74.441.000
11.837.000
7 ,6 30,000
n
420
RELEASE MORNING NEWSPAPERS,
Tuesday, April 3, 1951.___
$-2642
The Secretary of the Treasury announced last evening that the
tenders for $1,000,000,000, or thereabouts, of 91-day Treasury bills
to be dated April 5 and to mature July 5, X951> which were offered on
March 29, were opened at the Federal Reserve Banks on April 2.
The details of this issue are as fallows:
Total applied for - $1,642,994,000
Total accepted
- 1,001,004,000 (includes $98,071,000 entered
on a.non-competitive basis
and accepted in full at the
average price shown below)
Average price
- 9 9 .617 Equivalent rate of discount approx.
1.517$ per annum
Range of accepted competitive bids:
High
(excepting one tender of
$ 100,000)
- 99-630 Equivalent rate of discount approx.
1.464$ per annum
- 99*6l4 Equivalent rate of discount approx.
1 .527$ per annum
Low
(95 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
$
5 , 910,000
1 , 172, 863,000
26 ,636,000
74.441.000
11 837.000
7 ,630,000
.
2 0 5 ,5 5 0 , 0 0 0
13.536.000
3 ,1 8 3 , 0 0 0
.
31 322.000
31.408.000
5 8 .678.000
TOTAL
$1,642,994,000
0 O0
Total
Accepted
$
5 ,910,000
624,663,000
1 1 ,636,000
74.341.000
1 1 .837.000
7 ,630,000
139 ,300,00011.431.000
2,948,000
31.322.000
2 1 .308.000
58 ,6 7 8 ,000
$1,001,004,000
Yft V
® ||4*
~
t-
In September, 19^3, Mr. Maloney came to Washington as
Assistant Chief of the Secret Service.
During this assign
ment he accompanied the late President Roosevelt to Hawaii,
the Aleutian Islands and Alaska, and was with President
Truman during the United Nations Conference in San Francisco.
He was also in charge of the protective detail which
accompanied President Truman to the "Big Three" Conferences
at Potsdam, and made other trips with the President to
v
Mexico and Canada.
Mr. Maloney was appointed Chief of the United States
Secret Service on January 1, 19^7* and became Chief
Coordinator of Treasury Law Enforcement Agencies on
November 20, 19^8.
Mr. and Mrs. Maloney maintain their Washington residence
at 2929 Connecticut Avenue, Northwest.
0 O0
As a result of his work on security details involving
the visists of these notables, the Order of the Cloud and
Banner was conferred upon Mr. Maloney by the Chinese
Government, and the St. Olaf Medal was presented him by the
Kingdom of Norway.
In 19^0
Mr. Maloney assumed, in addition to his duties
as Supervising Agent, the work of Coordinator of Treasury
Enforcement Agencies in the New York area, which include
the United States Secret Service, the Bureau of Narcotics,
the Customs Agency Service, and the Alcohol Tax and
Intelligence Units of the Bureau of Internal Revenue.
On December 7, 19^1, in his capacity as District
Coordinator, Mr. Maloney assembled agents of the five
Treasury services, and directed the seizure of Japanese
aliens, properties, businesses
New York.
and records in and around
Following the declaration by the United States
of war with Germany and Italy, he directed the seizure of
all Axis-owned firms in the area, including the General
Aniline Company, I. G. Farbenindustrie, the Agfa-Ansco
Corporation and manyA enemy-held businesses.
On March 9 , 1931, Mr. Maloney was appointed as anqgent
of the United States Secret Service, and assigned to the
✓
Detroit office. In 1935 he was transferred to Syracuse,
as Supervising Agent of the Western New York territory,
where he served until 1937, when he was named Supervising
Agent of the Fourth Secret Service District, embracing the
states of Delaware and New Jersey.
In July, 1938, Mr. Maloney became Supervising Agent
of the New York District, the most active territory of
the Secret Service.
During his direction of Secret Service
operations in the New York District, agents broke numerous
counterfeiting !fsyndicates,n which sharply reduced losses
suffered by victims of counterfeit currency in that area.
While in New York, Mr. Maloney was directly responsible
for the safety of many visiting notables from foreign
nations. Among these were King George VI and Queen Elizabeth
of England, Madame Chiang Kai-Shek of Nationalist China,
Princess Martha of Norway, the late Queen Wilhelmina of
The Netherlands, the late President Osmena of the Republic
of the Philippines, and Winston Churchill, at that time
British Prime Minister.
Mr. Maloney was also responsible
for the safety of the several members of the family of the
late President Roosevelt in and near New York, and supervised
safety plans for F.D.R. when at Hyde Park or elsewhere in
New York.
RELEASE MORNING NEWSPAPERS,
Friday, March 30* 1951.
James J. Maloney, Chief Coordinator of Treasury
Enforcement Agencies, and former Chief of the United States
Secret Service, will retire at the close of business today
after thirty-one years as a law enforcement officer.
In accepting his request for retirement, Secretary
Snyder paid tribute-to Mr. Maloney's splendid career with
the Department, which he said had been"an outstanding
contribution, not only to the enforcement of laws coming
under the jurisdiction of the Treasury, but to law enforce
ment generally."
Mr. Maloney was born in Binghamton, New York, a son
of Mrs. Margaret Barbour Maloney, and the late John J.
Maloney.
After service overseas during World War I with
the famed Lafayette Escadrille, Mr. Maloney returned to
Binghamton in 1920 and became a member of the city's Police
Department.
In 1924 he was appointed to the New York State
Police, serving as a patrolman and investigator until 1930 ,
when he was named under sheriff of Broome County (Binghamton)
TREASURY DEPARTMENT
Information Service
W ASHINGTON, D .C .
425
RELEASE MORNING NEWSPAPERS,
Friday March 30, 195>1*
S-26U3
James J. Maloney, Chief Coordinator of Treasury Enforcement Agencies,
and former Chief of the United States Secret Service, will retire at the
close of business today after thirty-one years as a law enforcement
officer.
In accepting his request for retirement, Secretary Snyder
to Mr. Maloney1s splendid career with the Department, which he
been Han outstanding contribution, not only to the enforcement
under the jurisdiction of the Treasury, but to law enforcement
paid tribute
said had
of laws coming
generally."
Mr. Maloney was b o m in Binghamton, New York, a son of Mrs. Margaret
Barbour Maloney, and the late John J. Mhloney* After service overseas
during World War I with the famed Lafayette Escadrille, Mr. Maloney returned
to Binghamton in 1920 and became a member of the city*s Police Department.
In 192U he was appointed to the New York State Police, serving as a
patrolman and investigator until 1930, when he was named under sheriff
of Broome County (Binghamton)*
On March 9* 1931* Mr. Maloney was appointed as an agent of the
United States Secret Service, and assigned to the Detroit office. In
1935 he was transferred to Syracuse, as Supervising Agent of the Western
New York territory, where he served until 1937* when he was named
Supervising Agent of the Fourth Secret Service District, embracing the
states of Delaware and New Jersey.
In July, 1938, Mr. Maloney became Supervising Agent of the New York
District, the most active territory of the Secret Service. During his
direction of Secret Service operations in the New York District, agents
broke numerous counterfeiting nsyndicates,H which sharply reduced losses
suffered by victims of counterfeit currency in that area.
While in New York, Mr. Maloney was directly responsible for the
safety of many visiting notables from foreign nations. Among these were
King George VI and Queen Elizabeth of England, Madame Chiang Kai-Shek
of Nationalist China, Princess Martha of Norway, the late Queen Wilhelmina
of the Netherlands, the late President Osmena of the Republic of the
Philippines, and Winston Churchill, at that time British Prime Minister.
Mr* Maloney was also responsible for the safety of the several members
of the family of the late President Roosevelt in and near New York* and
supervised safety plans for F.D.R. when at Hyde Park or elsewhere in
N&w York«
-
2
-
As a result of his work on security details involving the visits of
these notables, the Order of the Cloud and Banner was conferred upon
Mr* Maloney by the Chinese Government, and the St* Olaf Medal was presented
him by the Kingdom of Norway*
In 19U0 Mr. Maloney assumed, in addition to his duties as Supervising
Agent, the work of Coordinator of Treasury Enforcement Agencies in the
New York area, which include the United States Secret Service, the Bureau
of Narcotics, the Customs Agency Service, and the Alcohol Tax and
Intelligence Units of the Bureau of Internal Revenue*
On December 7* 19Ul* in his capacity as District Coordinator, Mr* Maloney
assembled agents of the five Treasury services, and directed the seizure of
Japanese aliens, properties, businesses and records in and around New York.
Following the declaration by the United States of war with Germany and
Italy, he directed the seizure of all Axis-owned firms in the area, including
the General Aniline Company, I* G. Farbenindustrie, the Agfa-Ansco
Corporation and many other enemy-held businesses.
In September, 19^3, Mr. Maloney came to Washington as Assistant Chief
of the Secret Service* During this assignment he accompanied the late
President Roosevelt to Hawaii, the Aleutian Islands and Alaska, and was
with President Truman during the United Nations Conference in San Francisco.
He was also in charge of the protective detail which accompanied
President Truman to the ”Big Three” Conferences at Potsdam, and made other
trips with the President to Mexico and Canada*
Mr. Maloney was appointed Chief of the United States Secret Service
on January 1, 19h7, and became Chief Coordinator of Treasury Law Enforcement
Agencies on November 20, 19^8,
Mr. and Mrs. Maloney maintain their Washington residence at
2929 Connecticut Avenue, Northwest.
0O0
@FedFRASER