Full text of Press Releases of the United States Department of the Treasury : Volume 87

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L IB R A R Y
ROOM 5030

JUN 141972
TREASURY DEPARTMENT

- 3

-

11As we told the Committee in open session last
Tuesday, the Treasury is determined to see that every
tax chiseler gets his just deserts.
the aim of the Committee, also.

I know this is

As to income tax

matters, the Treasury and the Committee are working
toward precisely the same ends.”

0 O0

2
The Bureau cannot, of course, enforce local laws on
gambling, but it is very much interested in seeing
that gamblers do not get away with Federal tax law
violations.
f,I hope that other local officials will follow
the Mayor*s example.

This sort of cooperation from

public officials of States, counties and municipali­
ties will be of very great value to the Bureau.

And

of course it directly supports the purposes which
the Kefauver Committee serves.
"As was announced recently, a Subcommittee of
the House Ways and Means Committee is now studying
the need of legislation to fortify the present income
tax code against certain types of evasion.

Generally

speaking, the proposals being considered are intended
to give the Revenue Service a stronger hand in dealing
with wilful cases of improper returns and improper tax
re c o r< ^ ^. ^ ^ ^

i J[ 0r, t,.

/fct

y /^****«^

supplied to the Kefauver Committee from
time to time much detailed information compiled from
the records of the Bureau of Internal Revenue on tax
fraud investigations and prosecutions.

We wanted the

Committee to have an accurate picture of the manner
and scope of our tax fraud law enforcement activities.
Treasury and Revenue officials will be glad to give
the Committee any aid it may want in analyzing and
the Committeefinds

evaluating this information.

xitseJU&->in need of addiUtiaaa^^rcffis,
them as promptly as possible

.1
—

,

"present

✓

Secretary Snyder today issued the following
statement:
"I am gratified that the life of the Senate Crime
Investigating Committee has been extended.

I hope the

extension will provide further opportunities for con­
sultation between the Committee and the Treasury asmeans of strengthening the Bureau of Internal Revenue
campaign against tax evaders of the criminal class.
*»I want to assure Senator Kefauver, the Com­
mittee Chairman, that the Treasury earnestly desires
to continue to work closely with the Committee toward
fullest exposure of organized crime’s operations in
this country, and particularly toward seeing that taxdodging gamblers and racketeers meet the full force
of Federal penalties.
"The action of some of the States in creating
local Committees also is highly commendable.

Energetic

action by these State groups should be an important
aid in law enforcement, and should materially assist
the Bureau of Internal Revenue in bringing tax evaders
of the professional criminal type to justice.
"The publicity given the findings of the Kefauver
Committee already is bringing us assistance from
unexpected sources.

For instance, I have just received

a letter from the Mayor of an important city, giving
us data —

including names —

in his vicinity.

on gambling operations

The Bureau of Internal Revenue

investigators will give this data immediate attention.

TREASURY DEPARTMENT
Inform ation S e r v ic e

WASHINGTON, D .C .

RELEASE SUNDAY NEWSPAPERS,
April 1, 1951

S—2644

Secretary Snyder today issued the following statement:
**I am gratified that the life of the Senate Crime Investigating
Committee has been extended« I hope the extension will provide further
opportunities for consultation between the Committee and the Treasury on
means of strengthening the Bureau of Internal Revenue campaign against
tax evaders of the criminal class*
nI want to assure Senator Kefauver, the Committee Chairman, that the
Treasury earnestly desires to continue to work closely with the Committee
toward fullest exposure of organized crime1s operations in this country,
and particularly toward seeing that tax-dodging gamblers and racketeers
meet the full force of Federal penalties*
uThe action of some of the States in creating local committees also
is highljr commendable. Energetic action by these State groups should be
an important aid in law enforcement, and should materially assist the
Bureau of Internal Revenue in bringing tax evaders of the professional
criminal type to justice.
nThe publicity given the findings of the Kefauver Committee already
is bringing us assistance from unexpected sources® For instance, I have
just received a letter from the Mayor of an important city, giving us
data — including names — on gambling operations in his vicinity* The
Bureau of Internal Revenue investigators will give this data immediate
attention* The Bureau cannot, of course, enforce local laws on gambling,
but it is very much interested in seeing that gamblers do not get away
with Federal tax law violations.
”1 hope that other local officials will follow the Mayor*s example*
This sort of cooperation from public officials of States*-;counties and
municipalities will be of very great value to the Bireeau* And of course
it directly supports the purposes which the Kefauve rooinmitt ee serves*
•’As was announced recently, a Subcommittee of the House Ways and
Means Committee is now studying the need of legislation to fortify the
presoit income tax code against certain types of evasion# Generally
speaking, -the proposals being considered are intended to give the
Revenue Service a stronger hand in dealing with wilfull cases of imr~
proper returns and improper tax records.

5
-

2-

"Commissioner George J. Schoeneman of the Bureau of Internal Revenue
has supplied to the Kefauver Committee from time to time much detailed
information compiled from the records of the Bureau of Internal Revenue
on tax fraud investigations and prosecutions. We wanted the Committee to
have an accurate picture of the manner and scope of our tax fraud law
enforcement activities. Treasury and Revenue officials will be glad to
give the Committee any aid it may want in analyzing and evaluating this
information*
"As we told the Committee in open session last Tuesday, the Treasury
is determined to see that every tax chiseler gets his just deserts. I
know this is the aim of the Committee, also. As to income tax matters,
the Treasury and the Committee are working toward precisely the same ends."

0O0

G
Treasury Department
Washington

FCE RELEASE

Press Service
No« S-2645

Secretary of the Treasury Snyder today made public a series of tabula­
tions which will appear in the report «Supplement to Statistics of Income for
1947^ Part 1« compiled from partnership returns of income« These data are
prepared raider the direction of Commissioner of Internal Revenue George J c
Sehoeneman«
Summary data
The total number of partnership returns for 1947 was 889*831* filed by
888*862 active partnerships and 969 inactive ones« Of the active partnerships
785*976 reported ordinary net income aggregating $8*008*362*000 while 102*886*
reported ordinary net deficit aggregating $329*861*000« The returns with
ordinary net income show total receipts of $57*904*154*000 while those with
ordinary net deficit show total receipts of $2*782*789*000 making a grand total
of $60*686*943*000« (Table 1}
Over 90 percent of the partnership returns filed for 1947 fall in the
following six industry divisions? trade 372*212j service ISO*954^ agriculture
117,050? manufacturing 74*978f real estate 67*155f and construction 52*592«
(Table l)
^
Returns with ordinary net income show total deductions of $49*895*792*000«
When ordinary net income is adjusted for additional income such as capital
gains and additional deductions such as capital losses and charitable contri­
butions* the compiled net profit becomes $8*115*770*000« For those returns
with no ordinary net income* total deductions amount to $3*112*650*000 while
the compiled net deficit is $278*029*000« (Table l)
# The distribution of the returns according to size of gross receipts from
business shows that 568*041 or about 64 percent of all partnerships had gross
^ess 't&fH $50*000j while less than 2 percent had gross receipts of
$500*000 or more« (Table 2)
Of the 72*736 not reporting gross receipts, from business* 54*079* were in
real estate j 6*236 were in finance j and 2*440 were in agriculture« The' re­
ceipts of these partnerships are reported under rents* interest*-' dividends«
etc« (Table 2)
•
.,v v,
■ Examination of the distributions by size of ordinary net income and by
size of oridnary net deficit shows that 413*456 out of 785*976* or 52«6 per­
cent* had net incomes under $5*000f while 80*956 out. of 102*886* or 86«4
percent « . had net deficits n-f Ta s k -tha-n Ë^.nnn
n-p
_____

-

2

-

Distribution of partnership returns of income 19U7
by size of ordinary net income or deficit
sTze of ordinary net income:______Number of returns____
or ordinary net deficit
; With
* With
(Thousands of dollars)
: ordinary
: ordinary
: net income
: net deficit
53,38U

Under 1
1 under 2
2 under 3
3 under 1+
1+ under 5
5 under 10
10 under 25
25 under 50
50 under 100
100 under 500
500 under 1,000
1,000 and over

100,735
93,350
82,1+00

^92
52

8
2

Total

785,976

102,886

ihtbX 1

62,560
176,796

132,025
1+1,060
16,001
6,39U

17,661+
8,929
5,283

3,676
7,687
li,U78
1,198

L+oo
177

Partnership returns of income are summarized in Table 3 by States and
Territories, classified by ordinary net income and no ordinary net income,
showing number of returns, total receipts, and ordinary net income or
deficit.
Of the 888,862 partnerships 652 ,501 , or 73 -h percent, consisted of 2
partners; 130 ,565 , or lb-7 percent, consisted of 3 partners; 1+1,899, or U-7
percent, consisted of 1+ partners; 30 ,689 , or 3.5 percent, consisted of 5 or
more partners; while 33 ,208 , or 3*7 did not report the number of partners.
Certain provisions of the Internal Bevenue Code
*
regarding partnerships""
The partnership return, Form IO65 , is an informational' return, not a tax
return; the share of each partner in the net income of the partnership is
carried over as income to his individual income tax return, and taxed there
according to individual income tax provisions.
The basiCwdata required on Form IO65 for I9I+7 are detailed sources of
income, various deduction items, capital gains and losses, and the partners
shares of income and credits.
A partnership is defined in the Internal Revenue Code as a syndicate,
group, pool, joint venture, or other unincorporated organization, through or
by means of which any business, financial operation, or venture is carried
on, and which is not, within the meaning of the Code, a trust, an estate or
a corporation. A partner is a member in such a syndicate, group, pool, join

7
- 3 venture, or organization—
corporation»

and may be an individual, a partnership, or a

Every domestic partnership and every foreign partnership doing business
within the United States, or having an office or place of business therein,
must make an annual report of income on Form IO6 5 ®
After excluding gains and losses from sales and exchanges of capital
assets, there is computed an ordinary net income which is the excess of gross
income over deductions, or an ordinary net deficit which is the excess of de­
ductions over gross income®
In computing the net income of the partnership no deduction is allowed
for charitable contributions, but each partner is allotted his share of the
charitable contributions made by the partnership» Similarly partially exempt
interest, net short-term gains and losses, and net long-term gains and losses,
are distributed to the several partners the same as ordinary net income or
deficit and charitable contributions»
Wages and salaries, and other payments to partners are not deductible,
but must be considered part of the final sharing in the ordinary net income or
deficit of the partnership» In addition net operating losses are not
deductible«
Beturns included
The returns tabulated are in general those for calendar year
•
There
are in°luded, however, returns for a fiscal year ending within the period
July I9I47 through June I9I18 , as well as part year returns with a greater
number of months in I9lj.7«
The data are derived from all returns with $100,000 or more of gross re­
ceipts from business or profession, or $100,000 or more of total income; and
from a 10 percent bundle sample of all other returns, the sample data being
expanded to give estimates of population values»

Table 1,• — Partnership returns of income for 1947, by Industrial groups, for all returns, and returns with ordinary net incomes Number
of returns, receipts, deductions, ordinary net income, and compiled net profit
PART I. - ALL RETURNS
(Money figures in thousands of dollars)
Apparel
Leather
and
Rubber
products and
products products
made
from
fabrics

Lumber
and
timber
basio
products

Furniture
and
finished
lumber
products

Paper
and
allied
products

Printing
and publishing
Industries

168
392

11,351
26,891

5,085
11,763

473
1,328

6,983
16,256

1,743
4,393

180
685

1
2

335,099 1.696,163 189,956

15,714 870,753

350,112

81,752 386,509

227,538

42,682

3

20

174

“

65

35

1

4

5

5

Crude
Receipts and deductions

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31

Number of returns
Number of members
Receipts:
Gross receipts from business
or profession
Net profit from other partnerships,
syndicates, pools, etc*
Interest, other than on Government
obligations
Interest on Government obligations
(less amortizable bond premium)
unless wholly exempt from tax
Rents /
Royalties 2/
Net gain, from sales of property
other than capital assets
Dividends
Other income

2

Jj

Total receipts
Deductions:
Cost of goods sold
Inventory at beginning of year
Merchandise bought for sale
Cost of labor, supplies, etc.
Inventory at end of year
Salaries and wages
Rent paid on business property
Repairs
Interest on indebtedness
Taxes paid
Losses by fire, storm, etc.
Bad debts
Depreciation
Amortization
Depletion 4/
Net loss from other partnerships,
syndicates, pools, etc.
Net loss from sales of property
other than capital assets
Other deductions £/
Total deductions

Total
All
industrial mining
groups
and
quarryine
888,862 13,579
2,104,082 53^040
59,253,157 818,708
60,166
69,901

1,077
512

175
400

421,434 397,274 7,905,673 1,565,410

197,390

21,685

935
409

142
103

3,414
2,262

718
255

52

1,717
4,695

9,424
23,290

1,125
2,986

2

75

65

*

551

3

86

227

37

-

345

95

8

.618

41

47

2

89

45

12

109

27

2
28' 2

6

154

130

24

1,217

91

25

2

120

646,026
40,418
142,933

2,244
7,331
1,142

758
6,736
1,024

1,486
595
118

12,233
1,524
1,443

2,200
288
186

419
12
83

31
-

591
1
54

1,597
44
88

177
48

10
■ -

1,647
532
346

785
19
28

183

1,052
55
68

321

8

47

9

55,427
405,402

432
8,266

385
5,953

47
2,313

1,892
29,930

104
6,058

30
1,189

3
52

50
1,928

169
3,807

212
590

46

361
4,119

38
1,599

5
337

276
1,410

59
906

1 10
209 11

60,686,943 839,866

'437,764 402,102 7,959,580 1,575,310

199,200

21,778

337,804 1,702,490 190,887

15,772 878,743

352,695

82,305 590,142

229,002

42,987 12

42,161,416
4,192,777
35,678,194
7,097,712
4,807,267
5,721,472
797,796
416,356
185,981
619,902
22,413
96,997
813,099
6,147
68,116
4,929

416,083
5,306
36,018
377,637
2,878
52,715
9,014
17,994
4,419
13,744
463
970
47,483
506
49,436
345

215,342
3,212
8,965
204,566
1,401
14,283
2,092
6,785
3,331
8,443
266
443
30,747
357
40,476
' 338

26!},741 5.683.525 1,266,998
84,451
2,094 630,386
27,053 3,586,964 1,005,398
173,071 2,146,938 268,785
1,477 680,763
91,636
59,242
38,432 358,517
6,922
9,132
75,431
12,307
11,209
57,590
1,088
16,646
2,711
9,540
5,301
80,796
207
519
2,830
. 527
13,662
1,121
16,736 112,619
19,660
149
1,146
52
8,960
94
8,514
7
30
262

128,687
22,636
90,436
36,477
20,862
15,546
1,715
2,267
599
8,244
97
95
5,902
89
1
-

16,988
4,391
9,497
6,451
3,351
614
143
85
59
1,034

250,040 1,309,570 147,002
33,904 146,255 20,646
159,027 763,451 97,242
90,130 557,925 51,906
33,021 158,061 22,792
6,240
11,464
59,613
2,001
20,653
3,514
4,157
714
2,127
2,356
387
579
1,687
15,115
2,813
231
47
32
1,357
222
309
7,198
1,134
3,216
17
6
13
128
1
11
. -

10,448 564,662
1,312 51,974
6,568 275,064
4,226 298,123
1,658 60,499
617 47,873
4,022
322
87 15,570
2,605
23
163 10,036
846
1
1,825
51
282 26,077
451
4
7,480
5

248,653
33,496
164,117
89,411
38,371
16,956
3,719
2,367
891
3,620
106
623
4,519
24
66

»,234 211,418
4,871 17,825
43,970 92,727
15,445 119,847
6,052 18,981
3,941 30,999
1,002
6,853
580
2,520
116
877
621
4,101
56
77
116
1,827
905
6,513
18
'86
59
18
*

154,389
21,237
123,612
51,411
21,871
10,607
1,699
1,366
434
1,583
117
586
2,523
7
5
3

51,452
1,231
23,038
8,744
1,561
622
178
316
79
495
17
37
750
80
109
*

23,269

486

4,070,549 102,710
53,008,442 716,368

35
36
37
38

Compiled net profit less net deficit 7/

7,837,741 147,497

For footnotes, see p. 23.

1,762
4,588

74,978
183,191

Chemicals Petroleum
and
and coal
allied
products
products

13,513

7,678,501 123,498

33
34

9,882
24,667

7,612 5,967
36^997 16,043

Textilemill
products,
including
cotton

330

Ordinary net income less deficit 6/
Income not included above:
Net short-term capital gain
Net long-term capital gain
Deductions not included above:
Net short-term capital loss
Net long-term capital loss
Contributions

32

Tobacco
Other Total
Food and
and
mining nanufac- kindred Beverages nanufactures
products
natural and
turing
gas pro- quarryduction ing

34,529 8,316
205,841 16,541
21,755
15,903
43,472

105
179
574

-

9
124
-

7

8

13
14
15
16
17
18
19
20

21

22
25
24
25
26
27
28

96

82

1 29

41,532

24,970

3,429 50

71,088 306,687

198,371

57,5655 31

30,631

5,422 32

3
734

41
245

46 33
6 34

267

2,893

254

102

-

72

497

61

36

672

314

51,613 51,097

591,162

80,090

21,222

1,702

22,062

109,385

12,704

1,838

70,399

26,760

374,725 341,643 7,005,601 1,461,750

296,241 1,530,286 172,205

13,872 752,523

308,618

18,682

1,900 126,220

44,077

11,217

83,455

31
656

3
182

219

51
34

,5,410

184,566

20,758

63,039 60,459

953,987

113,560

14,634

1,020

41,563

172,204

8,142
15,155

174
1,386

1,394
16,294

86
2,187

28
837

8

13
336

80
881

83

15

897
7,478

. 62
169
455

43
10
119

562
1,0S2
7,179

72
178
570

5
26
208

13
8

1
20
553

127
147
3,126

2
27
288

17

93
69
349

17
37
227

2
139

7
28
332

37
40
134

• 35
- 36
12 37

962,882 .115,013

15,260

1,007

41,338

169,765

18,448

1,896 134,084

44,483

11,261

85,825

30,706

5,462 38

85,650 61,847

m

Partnership returns of income for 1947, by industrial groups, for an returns, and returns with ordinary net income: Number
of returns, receipts, deductions, ordinary net income, arid compiled net profit - Continued
PART I. - ALL RETURNS - Continued

NonStone, Iron,
ferrous
clay,
steel, metals
and
and
and
products their
glass
products
products
Number of returns
Number of members
Receipts*
Gross receipts from business
or profession
Net profit from other partnerships,
syndicates, pools, etc.
Interest, other than on Government
obligations
Interest on Government obligations
(less amortizable bond premium)
unless «holly exempt from tax
Rents
Royalties
Net gain, from sales of property
other than capital assets
Dividends
Other income 5/

Z/Zj

Total receipts
Deductions*
Cost of goods sold '
Inventory at begining of year
Merchandise bought for sale
Gost of labor, supplies, etc.
Inventory at end of year
Salaries and «ages
Rent paid on business property
Repairs
Interest on indebtedness Taxes paid
Losses by fire, storm, etc.
Bad debts
Depreciation
Amortization
Depletion
Net loss from other partnerships,
syndicates, pools, etc.
Net loss from sales of property
other than capital assets
Other deductions 5/

i/

Total deductions
Ordinary net income less deficit 6/
Income not included above*
Net short-term capital gain
Net long-term capital gain
Deductions not included above*
Net short-term capital loss
Net long-term capital loss
Contributions ,
Compiled net profit less net deficit

4,152
9,862

3,172
8,018

Manufacturing - Continued
Machinery,
AutomoElectrical except
machinery transporta- biles and
and equip- tion equip- equipment,
ment
ment and
except
electrical electrical

3,148
7,451

963
2,252

4,652
n,688

380
964

191,597 343,700 240,552

“ Indusirial groups V - Continued
Public utilities
Transportation
Manufac- Total
Total
Trucking, Other
public
turing
hot
utilities transpor- local;
transporand ware- tation
anocable
tation
housing

Transpor—
tation
Other
equipment, manufacexcept
turing
autorao—
biles

4,555
10,937

3,374
8,396

20,776
49,348

19,544
45,532

14,190
31,918

5,354
13,414

39,107 305,856

534
1,289

Trade
Communication
and other
public
utilities
1,252
4,016

Total
trade

372,212
826,862

Wholesale

45,280
m,9io

294,759 ! 15,138
639,089
36,001.

89,621

409,690

73,493

231,314

763,995

729,894

453,404

276,490

2

1,296

10

59

3

7

278

41

12

933

933

422

sn

18,196

8,204

7,575

524

35

59

40

9

128

19

101

41

58

191

178

70

108

15

14,790

4,383

8,579

900

8

49

46

3

69

92

28

21

47

38

18

20

9

3,050
-$ ,

1,474

1,272

209

389
41
107

448
56
58

475
12
74

246
4
9

430
85
99

23
99
36

49
49
-

564
9
77

767
158
25

3,245
640
317

3,183
639
798

2,373
15
189

810
624
109

62
1
19

68,230
2,444
6,227

10,778
866
1,081

47,918
1,077
4,204

4,253
2n
213

18
1,348

113
1,273

20
801

4
440

108
1,641

3
293

213
480

89
719

16
1,085

234
5,003

ns
4,840

71
2,629

47

ne
163

5,940
233,908

2,256
76,679

2,685
126,344

. 371
n,670

193,545 347,052 242,028

90,395

412,251

73,973

40,369 307,404

233,456

774,605

740,121

459,191

280,930

34,484 38,170,968 13,154,703 20,503,599 1,347,456

118,518 227,524 167,6 U
12,127 30,448 26,000
52,801 126,082 106,001
67,499 104,951 61,407
13,909 83,957 , 25,797
10,208 17,037 10,837
1,614
2,896
3,024
3,422
2,376
1,099
623
752
472
2,197
3,668
2,333
100
221
62
405
891
676
5,844
2,954
5,942
7
95
60
126
95
31
36
39
55

61,403
9,043
41,470
22,130
U,240
3,546
1,024
553
165
1,207
38
271
989
16
56
3

264,816
38,299
136,657
133,184
43,324
20,418
3,850
2,471
1,143
4,854
77
1,644
9,360
U2
44

54,760
6,607
40,941
15,668
8,456
3,457
477
270
180
905
30
148
708

29,307 202,832
5,912 34,755
123,219
16,232 81,207
4,255 36,349
2,242 15,686
326
4,499
224
1,191
222
684
531
5,467
n
76
169
668
794
3,751
3
28
in
13
•
28

158,213
22,966
94,228
65,779
24,760
10,772
2,768
1,729
689
2,584
69
612
3,675

305,660
6,852
58,880
246,593
6,665
98,397
13,081
24,098
4,275
20,663
1,525
1,445
45,736
216
153
28

295,301
6,313
55,906
239,565
6,283
92,867
12,631
23,176
5,995
19,917
1,510
1,271
44,123
21
139
28

165,503
2,917
32,187
133,272
2,873
60,072
8,340
16,661
2,953
14,3n
897
884
31,030
166
99
22

129,798
3,396
23,719
106,093
3,410
52,795
4,291
6,515
1,042
5,606
613
387
13,093
44
40
6

10,359
539
2,974
7,228
382
5,530
450
922
280
746
15
174
1,613

8

—

23

41

76

52

253

19,665

26,243

18,939

8,609

34,566

4,616

162,788 287,946 208,099
30,757

59,106

4
111

10

403

i

-

77,732

343,416

65,531

35,929

12,663

68,855

8,442

7
53

8

89
1,115

113

-

20

n ,4 1 8

66

9
28

0

2 ,2 n

8

137

ne

783

785

451

332

3,901

31,218

22,102

133,376

127,055

85,837

41,218

37,849 264,278

34,101 37.818.183 13,048,982 20,303,945 1,329,105

29,981,092 n, 222 ,661
3.052.938
785,158
29.627.443 n. 061 .608
886,706
241,187
865,292
3,585,995
2,009,416
417,250
412,316
49,007
129,220
22,964
53,180
15/473
265,967
55,148
7,553
1,098
14,739
54,309
42,949
228,836
6
576
284
14
2,385
404
657
1,403
«.

Z\

7,084

6,321 |1,781,778

1,330

21

5

34
91

6

30,726

'

15.165.471 1,025,123
1,902/841 228,570
141980.638 1,035,464
*547,350
15,365
2,265,358 256,276
1^571*449
87,796
330,865
18,149
90,571
4,087
30,754
1,5Z9
181^019
10,416
5/667
401
31,234
2,422
157,322
6,799
- 2,014
234
1,386
139
IS
*588
5,182

90

545,244 1,022/795

55,520

205,432

649,436

623,006

387,226

235,780

2,520

43,126

30.024

125,169

n7,115

71,965

45,150

34
198

9
149

5
486

291
4,179

285
5,608

72
1,502

213
2,106

6
571

4,105
58,890

933
14,431

2,669
29,465

208
1,114

U ,1 2 2

5
19

5,905
15,618

9,643
737
6,047

1,062
4^929
7,705

71
949

764,432 2,n6,731

136,970

,

26,430 34,937,115 12,389,208 18,396,315 1,210,720
8,054 3,233,853

765,495 2,107,284

•

7/

Retail
Department
general
merchandise dry
goods

Total
retail

3
1
26

34
9
205

-

15

318

47
43
137

35

20

49
346
241

26
143

129
149
265

129
144
246

73
74
136

56
70
no

59,190

33,762

12,754

69,791

8,427

2,717

42,648

30,319

129,096

120,489

75,256

47,233

-

27

8,607 5,244,203

136,736

68

For footnotes, see p. S3.

CD

Table 1. - Partnership returns of income for 1947, by industrial groups, for all returns, and returns with ordinary net incomes Number
of returns, receipts, deductions, ordinary net income, and compiled net profit - Continued
PART I. - ALL RETURNS - Continued

^ood
stores,
Package
including liquor Drug
market
stores stores
milk
deals rs

Receipts and deductions

1

z

3
4
5
6

7
8
9
10

11
12

15
14
15
16
17
18
19
20

21
22
23
24
25
26
27
28
29
30
31

ZjZj

Total receipts .
Deductions:
Cost of goods sold
Inventory at begining of year,
Herchandise bought for sale
Cost of labor, supplies, etc. |
Inventory at end of year
Salaries and wages
Rent paid on business property
Repairs
Interest on indebtedness
Taxes paid
Losses by fire, storm, etc.
Bad debts
Depreciation
Amortization
Depletion 4/
Net loss from other partnerships,
syndicates, pools, etc.
Net loss from 3ales of property
other than capital assets
Other deductions 5/

1,028
2,151

1,306
2,772

4,515,675 365,558 720,170 1,435,828 1,040,815 2,424,998 3,685,628 873,869 829,731

673,571

73,538

50,169

48,094

174

509

299

107

1,784

7

22
29

107
153

18,076
40,193

1,074
401

223

1,360
1,751

24,022
48,013

207
72

431

357

32,175
75,863

1
2

70,363 246,291 1,920,542 4,465,256

5

1,981
4,306

30,959
66,643

-

111

472

2,417

4

7

8

281

979

1,828

5

38

137

504

6

731
4

4,474
222
589

9,534
50l
942

7
8
9

494
12,457

999
30,885

10

12

141,885 1,446,451 3,592,960
74,499 218,447 364,939
140,036 1,446,378 3,585,197
98,169
49,524
5,991
78,641 267,898 455,345
23,657 112,819 220,717
32,444
29,295
8,433
15,685
7,384
953
6,953
3,448
399
29,800
7,134
16,255
788
82
644
8,536
3,843
1,583
28,585
16,243
1,811
278
38
207
595
89
50
158
40
3

13
14
15
16
17
18
19
20

142

149

124

5

30

54

15

1

“

9,424
141
924

998

90

1,757
94
132

4,861
55
175

2,302
38
55

8,378
144
1,223

4,624
64
292

2,60u
63
143

1,304
29
149

1,145
5
151

580
5
5

98
1
20

121
1
1

263
40

401
7,023

16
794

94
3,582

239
17,699

174
12,954

224
17,328

299
21,861

IS
3,562

152
8,073

101
4,826

12
343

1
576

5
187

10
227

«

3,949
8,761

6

226

2
79

3,182

4,534,681 367,509 726,120 1,460,558 1,057,785 2,454,414 3,715,983 880,541 840,073

680,499

76,581

50,980

48,414

70,920 250,719 1,940,366 4,512,666

706,330 1,426,758 2,892.894 679,887 630,383
149,002 '113,510 215,488 35,251 141,587
728,432 1.329.485 2,797,541 675,088 657,181
82]357 181,624 15,647 16,164
25,434
98]594 301,759 46,099 184,549
196,538
73,304 380,012 159,237 45,077 42,171
6,899
27,296 18,372
72,721
20,787
12,693
2,764
2,311
26,334
4]153
1,422
5,559
1,163
5,294
2,218
7,322
6,162
17,128
48,692
8,510
257
172
670
l]312
599
1,130
1,383
6,424
1,234
4,218
18,609
5,715
5,327
39,658
7,113
44
89
405
260
61
39
64
116
280
44
37
73
100
20
51

504,048
61,715
504,669
24,935
87,271
40,263
3,889
3,413
1,155
5,029
200
2,557
6,398
28
105
25

48,401
12,408
46,611
3,467
14,085
5,637
1,591
561
388
737
22
105
484
2
5
-

32,699
8,759
32,910
613
9,583
3,956
1,883
133
76
447
18
134
288
2
7
•

35,893
8,952
38,407
752
12,218
2,157
1,174
155
127
365
17
33
386
55
11
*

40,447
2,371
36,409
3,932
2,265
5,847
1,996
607
132
659
24
294
865

51

6

3

4

292,532
59]256
289]136
l'381
57]241
12]285
5,580
1,094
410
5,488
81
172
2,324
19
15
115

511,511 991,165
104] 122 235,814
513,576 1,013,345
29,904
8,044
114,231 287,898
62,798 111,461
IS]306
48]135
3]181
4,103
l]909
755
11,869
8,713
252
141
441
2,483
8,761
4,969
165
51
226
53
31
4
494

411
95,851

4,247,665 331,947 637,121 1,276,822

119
82,694

1,519
179,957

431
169,941

169
32,362

4,787

2,835

64,133

44,433

43,210

12,448

6,547

5,204

129
563

13
701

6
55

22
207

1
15

21

15
249

5
36
246

84

21

15

86,956 108,719

78,352

12,399

6,755

5,202

10
793

339
774

83
749

668
5,753

247
2,218

131
816

59
218

107
103
1,638

92
62
708

302
3,344
666

40
93
946

21
123
67

289,706 35,845 89,521

183,001

147,754

272,247

406,038

10
23
125

6,394

77,905

404,652

254
797
689

55,433
602,594

270,138

22
419

35,305

86,220 108,292

147,784

383
4,047

56

910,001 2,184,276 3,311,331 794,321 731,781

183,736

287,016 35,562 88,999

/

777

1,747

24,521
54,002

31

149,165 11,832 28,704

Compiled net profit less net deficit 7

528

66,110
142,550

2

1,363

38

14,208
31,838

106

3,761,064
'233]090
5,695,970
82'216
250,212
202]972
49]359
16,845
4]770
26]095
'975
2,778
31,572
356
162
189

Total deductions

For footnotes, see p. 25.

1,840
3,932

459

55
36
57

S3
34

7,795
17,479

528

Ordinary net income less deficit 6/
Income not included above:
Net short-term capital gain
Net long-term capital gain
Deductions not included above:
Net short-term capital loss
Net long-term capital loss
Contributions

32

10,165
22,641

59,401 4,965 9,295
127'318 10,468 20]019

Number of returns
Number of members
Receipts:
Gross receipts from business
or profession
Net profit from other partnerships,
syndicates, pools, etc.
Interest, other than on Government
obligations
Interest on Government obligations
(less amortizable bond premium)
unless wholly exempt from tax
Rents
Royalties
Net gain, from sales of property
other than capital assets
Dividends
Other income 3/

Apparel
and
acces­
sories

(Money figures in thousands of dollars)
Industrial groups 1/ - Continued
Tirade - Continued
Retail - Continued
Second-hand
Other
Book and
Building stores,
Auto­
Furniture Eating
Prade not
station­ Sporting Florists Jewelry retail
except
materials,
motive
Filling Hardware
and house and
stores trade 8/ alio"able
dealers in ery stores goods
fuel,
furnish­ drinking dealers stations
second-hand
and ice
places
ings
automobiles

•

11

21

22
25
24
25
26
27

28

29

321

572

29

8,069 23,795

100,149

215,741

30

58,942 209,832 1,737,186 4,151,592

31

203,180

361,074

32

503
3,994

33

169

401
2,038

10
412

130
168
652

417
248
1,866

35
36
37

11,985 40,632

204,669

563,040

38

11,978 40,887
36

10
20

34

Compiled net profit lese net deficit

ij

|

289,706 [ 35,845] 89,52l| i35>001| 147,7541 272,247| 406,0331 8 o,^|

For footnotes, see p. 25=

Table 1» — Partnership returns of income for 1947, by industrial groups, for all returns, and returns with ordinary net incomei Number
of returns, receipts, deductions, ordinary net income, and compiled net profit - Continued
PART I. - ALL RETURNS - Continued
Industrial groups 1/- Continued
Personal service
Receipts and deductions

Total
service

Number of returns
Number of members
Receiptst
(brass receipts from business
or profession
Net profit from other partnerships,
syndicates, pools, etc.
Interest, other than on Government
obligations
interest on Government obligations
(less amortizable bond premium)
unless wholly exempt from tax
Rents
Royalties
Net gain, from sales of property
other than capital assets
Dividends
Other income

130,954
300,421

Compiled net profit less net deficit

2,030

122

1,697

581

386

76

413

82

44

21

36,949 54,401
337
30£
656
346

1,175
201
20

239
7,813

9(
3,857

540,642 1,239,116 404,653
1,258,799
. 80,615
516,600
746,804
85,218
639,978
166,517
49,499
: 16,089
62,463
3,498
8,152
109,315
656
814
308
2,687

475,695
30,195
172,304
305,156
31,962
173,845
56,162
27,024
8 ,8 8 6

23,491
1,048
2,536
44,616
259
273
52

3,182 12,387
6,679 24,307

3,741
8,535

. 1,195

8

25

15

89

4

11

343

385

541

1
21

11

12

41

16
148

54
1,262

60
1,184

12

223

2,993,849

994j943 346,446

373,570 54,234 75,239 104,508

1,346,793

244,173 58,206

78,929 12,794 40,929 39,012

3C

423
993
4,506

96

56
41
466

28

1

212

68

If
46

77

12

8

165

12

68

226

90

636

226

54

12

8

48

11

26

84

46

160

17

53

7

106
17
35

5,474
42
73

70
4
13

2,513

6,236
616
704

3,974
57
304

5,983
840
534

292

1,471
40

597

•
187

107
2,025

38
1,559

20
141
1,769 12,631

103
4,929

559
6,068

82
603

1

40,944 241,326
14,304

63,854

«.

68

10
120

148,992 366,215 669,020 182,428 1,501,316
87,192
1,014
28,771
58,447
1,040
14^075
2,337
166
113
751
8

413
764
4
«
4

205,961 188,655
18^093 i 9'547
149,657 53,678
59,827 131,971
21j616 6,541
29j019 75,347
14)089 27,932
2,892 9,886
1,167 2¡493
3,789 18,374
176 1,467
820
733
6,850 50,031
122
41
86
124
17
66

4,155
133
275
3,916
169
75,262
6^798
388
402
1,935
#H
395
1,225
23
12

3

1,273

22

92

7

39,062

198,246

23,266

124,421 293,254 551,488 141,038

13

168

24,571 72,959 117,532

68

19
7

39
1,270

24
631

209,572 425,221

18,581 28,179 194,985

3,884
10^912

515
34
26

365

509
21

61
4
i i

H l

628

192,269 ,;33,724. ;199,228

54,713
8,254
1*862
86
12'303
2,464
42^349
5Í760
1*801
1 56
57'129
21,780
12Î674
5*590
2,482
'627
*699 : ‘' 121
3,310
1,040
S2
' 26
695
71
6 ,021
2,031
64
15
34
3
35

’1

l
;
>
?

4,425 i
'236 Ü
1,634 *
2^816
'263 í
4,651
1¡343 5

42,036
1*540
8,205
33^773
1*482
30^698
5¡741
'is o
1*675
?'• *532
Zß 4
2,006
1'
28
3
621
3,450
540
21

49
34
9

58,533 ■ 23,952 ; 5,496

29,085

51

717,605

113,882 196,490

41,390

783,711

95,690 .228,731

2

63,512

49

16,967 116,011

128,757 - 16,757

83,217

131
3,376

3
789

291
1,910

79
178

5
501

-- - --'4'
178
18

505

125
286
726

2

25
234

81
162
.2,228

29
83
. 511

58
605

13
253

35

18
315

24,532 73,883 119,902

41,921

783,441

95,324 228,596

128,669

16,737

83,190

557

120

1,064

72

-

2

14
54

53
317

9
18
16

40
167
153

11
100

48
87
56

14,381 .64,626

58,832
122,170
l'l73
5^655
8,793
22,586
49,038
98,754
172
4,825
15,667
304,938
10^952 f 55,746
2,956 , ! 5,811
664
1,988
6,145
11,388
443
601
87
2,497
6,185
13,577
22
126
256
1
169

z

1

33,328 197,625

315

37
1,078

79,404 12,806 41,154 39,209

190,657

638

163

14
279

1,160
2^432

963

45,965

2

3,372
7*796

5,924

31

il7
779

4,441
8,416
111184 21^140
.; r ,
147,398 361,346 646,733 172,475 1,484,812 307,587 421,608
450

6,367

196
4,286

'31,122
80,855

1,649

14

343
6,097

2,538
6,897

341

9,909 15,844 23,087

889
13,765

325

51

1,659 17,038 14,708
3,780 35,828 36,501

rroSessional and social services
Medical and health services
Total pro- Accountfessional ants,
Total
PbysiOther
and
auditors, medical clans,
social
and book- and
surgeons« Dentists medical
services keeping health and
services
service services oculists

107

21,053 136,222
1,827
3,199
10,215 42,651
11,144 93,481
2,153
3,109
7,521 36,767
5,681
6,465
524
2,127
119
898
470
2,767
24
82
39
796
1,092
9,003
1
38
5
27
19
6

,69,431

249,076 62,126

54,902 298,852
_
394

176,336 28,786 24,475 59,455
4,012 5,724 1,511 11 ,1 0 1
19,429 15,08C 4,668 39,764
157,162 14,531 19,718 20,805
4,267 4,547 1,422 12,215
82,667 8,90C 22,548 8,440
10,884 3,343 9,302 2,249
8,399
608 1,155 2,264
1,999
159
169
627
7,170
756 1,134 2 ,1 2 0
397
11
108
18
546
166
79 1,176
15,242 1,559 2,315 5,016
82
4
10
42
190
42
-1
4
9

324

1,355,525

8,237
18,608

55,248 305,180

180,905 58,267

1,229

3,946
8,006

452,499 67,026 116,168 143,520

675,074

Tj

675

165,586
8,02C
83,140
81,796
7,576
43,26S
26,703
14,074
5,813
11,841
49C
53C
19,394
1ZC
37

Business service
Amusement
Automo*
Barber
Total
bile
Other
Total Motion
Funeral personal business Advertís- repair amuse- picture
and
beauty service service service ing
serment
theatres
shops
vices
end
garages

449,691 66,496 114,418 141,558

2,185

1,057
51,047

5/

Total deductions

13,858
30,208

8,598

, 53,571
1,847
1,921

Total receipts

Ordinary net income less deficit 6/,
Income not included abovei
Net short-term capital gain
Net long-term capital gain
Deductions not included above:
Net short-term capital loss
Net long-term capital loss
Contributions

47,371 10,257
102,143 24,406

4,240,491 1,190,274 363,209

ZjZj
S/

Deductionst
Cost of goods sold
Inventory at beginning of year
Merchandise bought for sale
Cost of' labor, supplies, etc.
•
Inventory at end of year
Salaries and wages
Rent paid on business property
Repairs
Interest on indebtedness
Taxes paid
Losses by fire, storm, etc.
Bad debts
Depreciation
Amortization
Depletion 4/
Net loss from other partnerships.
syndicates, pools, etc.
Net loss from sales of property
other than capital assets
Other deductions

Total
Hotels Laundries, Photo­
personal and
cleaning, graphic
service other and
studios
lodging dyeing
places

7

1

For footnotes, see p. 23,

CD

T&ble 1. - Partnership returns of income for 1947, by industrial groups, for all returns, and returns with ordinary net income: Number
of returns, receipts, deductions, ordinary net income, and compiled net profit — Continued
PART

t.-

ALL RETURNS - Continued

oney figures in thousands of dollars)
Services - Continued
Professional and social services-Ccntlnued
Insur­
Secu­
In­
Engin- Educa- Other
Total
ance
vest­ rity
neeriional profi­
agents
>
and
ment
insti- fes- Other
ing
nsice
Real
Other . bro­
trusts com­
tusional 3erLegal and
insur­ Total
estate
kers
'inance
9/
modity
finance and
vice
ser- archi- tions and
ance
and
ex­
in­
and
vices tecsocial and
and
s
e
r
*
»
vest­ change
turai agen- ser- repair
real
vices
ment brokers
cies vices
ser-»
estate
eompa— and
vices

Receipts and deductions

13,096
36,200

Number of returns
Number of members
Receipts:
Gross receipts from business
or profession
Net profit from other partnerships,
syndicates, pools, etc.
Interest, other than on Government
obligations
Interest on Government obligations
(less amortizable bond premium)
unless wholly exempt from tax
Rents
Royalties 2
Net gain, from sales of property
other than capital assets
Dividends
Other income 5/

3,079 6,573 67,155 4,422
8,706 14'910 183^573 13j250

1,547

524

209

43

105

316

20

5

17

21

77

17

16

-

13

1,691
297
152

120
230
82

41
114
30

368
159
-

416
2
34

304
2,527

38
1,061

1
377

75
250

11
721

Deductions:
Cost of goods sold
Inventory at beginning of year
Merchandise bought for sale
Cost of labor, supplies, etc.
Inventory at end of year
Salaries and wages
Rent paid on business property
Repairs
Interest on indebtedness
Taxes paid
Losses by fire, storm, etc.
Bad debts
Depreciation
Amortization
Depletion 4/
Net loss from other partnerships,
syndicates, pools, etc.
Net loss from sales of property
otter than capital assets
Other deductions 5/

11,279 40,143 7,971 3,909 130,098
115 13,924
539
1,340 1,666
409 5,547 2,489 1,563 75,724
9,562 34,806 5,593 2,528 57,615
650
297 17,165
32 1,876
111,354 51,015 6,724 3,454 20,562
813 6,123
28,484 5,488 1,489
631
726
133 1,759
1,451
657
42
154
236
455
432
296 2,654
3,354 2,061
124
14
169
6
349
770
86
23
SOI
797
235 5.238
3,404 1,551 1,141
70
8
12
19
48
37
7
166
18
88
45
“
“
18

6/

17

5

-

318

149

18

120,402
286,718

113,778
269,987

3,272 3,089 15,722
7,742 8,296 35,642

339

8,877 3,260

954

694

224

36

3,912

3,531

325

30

540

56

384

348

278

53

17

487

480

1

1

S4

1,665

2,485
80
550

307
4
188

23,905
4,902
3,494

22,144
4,825
3,265

1,547
10
189

66
1
10

2,068
1,116
1,259

7,769
6,661

3,274
2,986

780 2,470 2,100
2,087 14,194 1,927

558
18,969

390
12,826

151
5,613

17
530

3,185
43,329

2,950
41,033

205
1,895

26
285

970
6,034

41,159 35,809 24,766
28,916 10,708 1,061

93,323 15,817
10,743 2,834
47,727 12,441
41,919 2,102
7,066 1,560
252,841 141,565
38,739 14,529
37,665 1,172
59,833 10,482
92,712 8,723
488
1,831
9,489 6,543
78,98" 2,562
36
296
689
4,551
142
621
6,468

9,487
558
8,680
968
719
129,626
12,476
476
5,030
6,813
39
873
1,457

2,140

556,886 132,385

72,452 221,950 818,156 78,532 3,519,820 1,721,134 1,636,360 162,326 3,048,918 2,667,475 273,050 90,630 455,811
5,091 18,476 54,014 5,016 2,422,763 1.266.092 1,047,151 109,520 1,776,328 1,508,068 223,553 33,056 223,843
82,486 1,895 250,605 241,838 6,927 1,039 25,844
45,109
352 129,490
2,165 1^796 51761
2.654 10*448 20*931 3,907 907,910 285,626 596,042 26,242 738,709 556,134 170,577 6,965 157,943
6,303 32,374 1,140 1,538,745 978,975 475,900 83,870 1,048,176 962,463 53,671 25,495 64,194
443 24,138
43,618 107,277 2,487 261,162 252,367 7,822
71 5^052 '383 '153 ',382
43,740 5,455 13,287 49,643
63,306
67,542 120,671 8,446
41,703 59',218 10,355 196'659
470 8,257
52,698 1,503
54,765
10,628 1,064
7,984
19,676
5jl95 17,336 1,679
52,865 3,670 6,685 5,490
63,418
8,829 2,359
20,186
31,374
628
'602 35l263
532 2,165
675
20,439
21,706
390
2,664
4,614
7'668
630 47*207 1,514
903 1,722 5,005
42,129
44,908
16,749 1,336
15,559
33,644
1,352 8l'.529 il108
378
115
3,157
3,650
239
22
349
453
824
10
*149 1*184
75
1,869
297
823
2,289
3,320
235
2,303
5,858
655
1,187 l'l04
19,711 3,953 116,267 105,996 4,230 5,627 8,975
41,222
64,886
1^571 73',819 1,230
14
16
51
90
120
270
183
127
580
'229
31
188
1,092
6
1,391
25
316
343
684
396
132 3,334
320
1,087
1,096
16
22
508
546
103
'249
127
149
37
1,471
587
1,657
22
139
463
624
195
28 4,105
61,992 144,240 15,442

231,701

105,592

115,iOS 13,004

164,490

141,398

9,322 12,692 47,770

132,975 522,831 38,331 3,017,487 1,530,988 1,345,837 140,662 2,315,391 1,976,099 249,580 74,689 353,356
88,975 295,325 40,201 502,333 190,146 290,523 21,664 733,527 691,376 23,470 15,941 102,455

255

19
240

15,632 12,647 1,372 11,150
71,829 20,098 8,518 7,954

20

33
79
114

8,310 .7,121 1,572
6,493 4,965 3,626
249
884
11,919

379,44« 62,759 7,503 9,813 64,597

2,417
5,215

5,185
90
3,070

379,702 62,525 7,482 9,581 64,564

J

34,497
74,202

7,977
174
3,808

325,702

42
38
927

15,678
36,468

Nature
of
busi­
ness
not
allo­
cable

Total
agricul­
Agri­
ture,
culture Fish­
forestry, Farming ser­
ery
and
vices
fishery

479 464,624 3,576
140
60 13j710
486 47^967 1,167

231,606 137,239 25,872 12,516 195,233

39

52,592
115,885

Con­
struc­
tion
not
allo­
cable

1,656
4,268
747

342,488 120,814

90
303

Special
trade
General
contrac­ contrac­
tors
tors

202
472,553 3,874 2,016
413
20,440 6,530 1,849
123,342 73,722 1,819 71,156

70,437 35,449 6,956 3,605 26,794

117
634

Total
con­
struc­
tion

217,257 261,533 64,780 3,482,525 1,694,605 1,626,859 161,061 2,958,463 2,582,091 268,865 90,199 438,583
13
12 5,197
7,158
7,241
166
345
3,996
4,507
406 3,116 1,198

611,308 199,764 33,354 22,097 259,797 ,576,725 458,087 47,836 337,799

Total receipts

Ordinary net income less deficit
Income not included above:
Net short-term capital gain
Net long-term capital gain
Deductions not included above:
Net short-term capital loss
Net long-term capital loss
’Contributions

87,647 9,497 3,811 2,607
252,975 41.242 16,306 16,230

604,397 197,672 32,563 21,185 258,474

Z/f

Total deductions

3,228 1,049
892 12,478
7,934 2,319 2,076 26,488

fi­
nance,
Insur­
ance,
and
real
estate
not
allocable

5,498
1,262
357

617,625 152,16C 28,744 89,026

15
345

2,059
50,295

1,906
29,317

83
337

23
421

731
7,862

72

762
515
2,086

690
383
2,053

12
12
37

60
86
8

253
441
196

291,533 21,946

762,518

342
27 2,616
674 47,976 3,081

1,112
6,186

775
4,570

324
1,271

92
116
506

89
176
1,129

48
116
567

35
60
490

34,3900 89,159 333,396 42,910

508,237

194,758

5

278

24 1,073
87 l'325
406 10,123

719,495 23,829 16,251 110,158

1

1

1

X

Table 1. - Partnership retnrno of Income for 1947, by industrial groups, for all returns,
° ^ inar3r net i“00"«”
of returns, receipts, deductions, ordinary net income, and compiled net profit — Continued

Number

PAST XI. - RETURNS WITH ORDINARY NET INCOME 6/

Mm£

Receipts and deductions

Number of returns
Number of members
Receiptst
Gross receipts from business or
profession
Net profit from other partnerships,
syndicates, pools, etc#
Interest, other than on Government
obligations
Interest on Government obligations
(less amortizable bond premium)
unless wholly exempt from tax
Rents
Royalties 2/
Net gain from sales of property other
than capital assets
Dividends
Other income 3

Z/

f

Total receipts
Deductions:
Cost of goods sold
Inventory at beginning of year
Merchandise bought for sale
Cost of labor, supplies, etc.
Inventory at end of year
- Salaries and wages
Rent paid on business property
■Repairs
.Interest on indebtedness
Taxes paid
losses by fire, storm, etc.
Bad debts
Depreciation
Amortization
Depletion 4/
Net loss frcm other partnerships,
syndicates, pools, etc.
Net loss from sales of property other
than capital assets
Other deductions

5/

Total deductions
Ordinary net income 6/
Income not included above:
Net short-term capital gain
Net long-term capital gain
Deductions not included above:
Net short-term capital loss
Net long-term capital loss
Contributions
Compiled net profit 7/

Food and
petroleum Other Total
Total
All
manufac­ kindred
industrial mining
products
natural and
turing
and
groups
quarry— gas pro- quarxy785,976 10,127
1*865,659 38,989
56,569,096 725,664
59,136

901

cturing
__
Apparel
Leather
Tcbacco Textile and
lubber
products and
mill
leverages manufac­
products >roducts
products made
tures
Including from
fabrics
cotton

8,493
21,390

1,275
3,893

U7
232

351,247 374,417 7,444,776 1,453^505

168,sn

17,580

5,201 4,926
25,675 15,316

768

153

65,214
155,994

3,359

2

704

furniture
umber
and
and
timber - finished
Lumber
basic
products products
10,082
24,257

4,233
9,962

325,155 1,636,976 180,939

14,753 825,944

325,205

20

538

168

1,436
4,022

75

8,384
20 ,a n

55

895
2,468

145
346

-

Paper
1’rinting
and pub­
and
ishing
allied
jroducts .ndusjries

Chemicals Petroleum
and coal
and
products
allied
jroducts

6,379
14,926

1,317
3,382

138
547

79,349 372,242

210,115

-41,756

-

65

35

1

8

618

40

5

405
1,140

63,730

«. 581

281

100

2,097

211

26

3

84

221

37

-

341

91

12,650

149

125

24

1,062

82

25

2

94

526

47

2

78

45

12

109

25

2

604,272
38,761
135,453

1,967
6,423
798

540
5,830
687

1,427
593
111

11,184
1,544
1,279

1,951
254
180

372
12
51

5

386

1,549

131

5

1,562

662

183

1,005

-

52

61

35

-

336

7

8

60

289
27
42

45
54
2

40,687
380,369

339
6,661

292
4,472

47
2,189

1,639
26,887

99
5,532

.23
850

3
40

49
1,882

155
3,590

212
575

42

559
3;902

38
1,205

5
322

276
1,354

52
761

1
206

364,242 379,041 7,495,627 1,462,518'

169,670

17,633

325,777 1,642,977 181,796

14,802 833,591

527,440

79,887 375,738

211,386

:42,0S4

40 010,066 343,494 156,600 186,894 5,291,253 1,168,010
73,379
2,944 1,977 544,611
3 867,585 4,921
8,255 24,505 3,363,678 927,576
34 136,204 32,758
6 519,682 308,425 146,622 161,803 1,991,936 246,499
79,444
1,219 1,591 608,972
4 513,405 2,610
54,136
3 462,217 43,966 ? 10,059 53,907 326,922
8,147
67,167
1,239 6,501
734,175 7,740
10,934
52,571
5,355 10,254
372,884 r15,589
2,189
13,810
946
1,890
156)616 2)836
8,637
74,129
6,725 4,917
569,575 11,642
391
1,996
195
408
213
15,282
933
11,797
518
184
702
87,171
16,917
99,236
23,082 15,151
714,346 38,233
49
984
253
141
394
5,502
7,672
64
35,239 8,725
61,234 43,964
5
117
53
60
2,076

105,015
12,669
76,182
29,012
12,850
15,240
1,256
1,892
371
7,256
40
.76
4,514
88

13,497
2,796
7,637
5,443
2,379
333
90
74
29
789

259,252 1,257,429 138,764
30,294 133,948 18,802
155,936 738,035 92,798
85,573 555,463 48,422
30,571 150,017 21,258
5,578
56,769
10,946
1,693
19,n o
3,233
666
3,831
2,007
342
2,
111
484
1,556
14,295
2,661
188
32
,191
1,181
237
1,033
6,632
2,876
:17
13
128
1

9,822 529,486
1,228 47,995
6,261 259,154
3,934 278,996
1,6Q1 56,639
549 43,620
297
8,718
74 14,501
22
2,329
9,374
144
653
1
1,671
- 23
251 24,231

227,414
28,851
152,382
80,982
34,781
14,571
3,317
2,130
732
3,254
76
489
3,873

56,332 200,033
4,419 16,362
42,737 88,980
14,795 112,675
5,619 17,984
3,664 29,540
6,348
927.
2,304
564
103
3,928
594
55
63
1,769
108
6,043
858

140,430
16,648
114,501
28,137
*18,851
9,328
i 1,339
' 1,281

59
18

5

175

35

ST, 904,154 743,285

8,859

276

3,695^789 72,605
49,895,792 581,909
8 008,362 161,374
21,756 7,252
154,876 10,321
19,042
7,686
42,496

29
157
531

8,115,770 178,230

76

200

1,252

2
84
-

70,116

16,409

1,309

267,399 514,510 6,481,471 1,340,701

150,190

16,207

26,431 46,174

532,565

96,843 64,531 1,012,156

121,817

'19,480

644
13,164

81
1,706

16
407

7,152
9,132
14
149
413

100
1,189
. 15
118

.404
494
7,036

112,551 65,679 1,018,030

26
no
552
122,916

1,426

22
197
19,685

1,420

ñ

6,848

5i

86

Í

\

: 1,596 ‘
99
528
2,162

i

30,908
; 1,178
22,613
8,657
| 1,540
457
165
275
473
14
36
698
80
63

60

136

27

-

292

38

-

61

16

1

20,550

105,134

12,023

1,625

65,607

23,944

5,100

39,106

|20,425

1 3,327

12,812 702,776

279,911

68,399 290,187

177,345

36,572

1,990 130,815

47,529

11,488

85,551

34,041

5,482

13

200
6,355

560

166

638

131

6

17

91
38
344

25
219

137

28
529

18
129

12

1?986 136,897

47,852

11,518

85,828

34,021

5,522

282,132 1,464,972 161,879
43,645

178,005

19,917

13
297

73
715

81

20
534

67
86
3,091

43,400

175,549

284
19,707

For footnotes, see p. 23.

o

Table 1. «* Partnership returns of income for 1947, by industrial groups, for all returns, and returns with ordinary net incomes Number
of returns, receipts, deductions, ordinary net income, and compiled net profit - Continued
PART II. - RETURNS WITH ORDINARY NET INCOME 6/ - Continued

Receipts and deductions

1
2
5
4
5
6

10

11
12
13
14
15
16
17
¡18
19
20
21
22
23
24
25
26
27
28
29
30

Number of returns
Number of members
Receiptsi
Gross receipts from business or
profession
Net profit from other partnerships,
syndicates, pools, etc.
Interest other than on Government
obligations
Interest on Government obligations
(less amortizable bond premium)
unless wholly exempt from tax
Rents
Royalties
Net gain from sales of property other
than capital assets
Dividends
Other income

Z/Zj
5/

Total receipts
Deductions:
Cost of good sold
Inventory at beginning of year
Merchandise bought for sale
Cost of labor, supplies, etc.
Inventory at end of year
Salaries and wages
Rent paid on business property
Repairs
Interest on indebtedness
Taxes paid
Losses by fire, storm, etc.
Bad debts
Depreciation
Amortization
Depletion 4/
Net loss from other partnerships,
syndicates, pools, etc.
Net loss from sales of property other
than capital assets
Other deductions

5/

31

Total deductions

32

Ordinary net income 6/^

33
34
55
36
37

Net short-term capital gain
Net long-term capital gain
Deductions not Included above)
Net short-term capital loss
Net long-term capital loss
Contributions

38

Compiled net profit

Tj

Far footnotes, see p. 23,

(Money figures in thousands of dollars)
Industrial groups 1/ - Continued
Public utilities
Transpor‘transportation
Other
tation
Manufac­ Total
Total
equipment, manufac­ turing
Trucking, Other
public
transpor­
utilities transpor­ local;
except
turing not
and ware­ tation
tation
automo­
allocable
housing
biles

Manufacturing - Continued
NonMachinery,
Stone, Iron,
ferrous Electrical except
Automo­
clay,
steel, metals machinery transporta­ biles and
and
and equip­ tion equip­ equipment,
and
and
glass
ment
products their
ment and . except
products
products
electrical electrical
3,146
7,595

2,713
6,866

2,649
6,263

738
1,745

3,959
10,041

3U
761

174,156 328,768 222,452

85,274

389,903

67,782

59

3

7

278

19

42

39

1

27

29

332
813

3,584
8,609

2,483
6,425

17,629
42,532

16,604
38,971

12,286
28,045

4,318
10,926

30,666 283,421

212,524

707,103

675,507

420,858

254,649

933

933

422

511

55

181

169

63

106

21

43

34

14

487
8
76

703
144
25

2,879
'634
254

2,822
634
235

89
664

16
981

122
4,651

266,294
580,175

14,085
35,607

1
2
3

518

4

12

14,352

4,235

8,317

85.4

20

9

2,925

1,438

1,184

209

&

2,160
10
171

662
624
64

57
19

64,760
2,332
5;739

10,303
828
939

45,291
1,019
3,938

4,132 7
211 '8
202 9

U7
4,546

71
2,465

46
2,081

5
105

5,748
223,769

2,128
71,450

2,631
122,394

369 10
11,486 11

716,800

684,997

426,234

258,763

141,953
17,728
86,230
58,130
20,135
9,073
2,277
1,473
500
2,294
54
517
2,977
8
4
28

276,970
4,923
52,879
224,352
5,184
90,912
11,681
21,060
3,390
18,735
869
1,179
39,182
195
S3
21

267,370
4,582
50,258
217,474
4,944
86,159
11,320
20,341
3,158
18,077
862
1,061
37,786
189
39
21

149,856
2,028
30,096
n9,885
2,153
56,090
7,602
14,934
2,360
13,063
464
724
26,740
149
38
15

117,514
2,554
20,162
97,589
2,791
30,069
3'718
5,407
798
5,014
398
337
11,046
40
1
6

9,600
341
2,621
6,878
240
4,753
361
719
232
658
7
118
1,396
6
14

606

606

334

272

_

113,789

77,153

36,636

34

55

35

9

124

8

49

35

3

69

320
41
107

402
40
38

435
12
60

246
4
5

400
79
98

23
84
36

18
1,120

113
1,220

20
502

400

108
1,539

3
198

175,806 331,981 223,559

86,000

392,323

68,152

31,216 284,852

214,469

103,387 215,274 152,047
10,121 27,486 21,821
49,202 120,924 98,005
56,439 98,417 55,145
12,575 31,553 22,924
9,339 15,921
9,562
1,256
2,693
2,541
3,178
2,2S1
1,029
507
584
402
2,017
3,422
2,089
32
70
60
339
692
653
5,342 »2,440
4,805
6
51
39
125
95
31
39
1

57,535
8,085
38,658
20,590
9,798
3,278
873
317
129
1,130
38
253
882
16
56
3

248,647
33,559
128,493
124,930
38,335
18,878
3,443
2,281
983
4,518
30
1,359
8,514
no
44
4

49,578
5,530
37,460
13,738
7,150
3,133
434
258
144
794
20
135
579
—
-

21,251 185,211
3,458 28,279
9.640 112,294
11,31# 74,640
3,166 30,002
1,673 13j334
235
3,775
166
1,005
94
527
409
3,099
69
n
91
514
S12
3,013
10
10
3

41

21

30

41

11

196

mm

3

91

20

17,290

24,290

16,857

7,956

31,520

4,136

1,973

27,277

18,791

n 9 ,1 5 3

26,418 237,938-

142,302 270,754 187,792

39,966
99,522

8,059

ID

mm

335,028
748,759

Retail
Department,
general
merchandise
dry goods

Total
Wholesale retail

17,921

1,296

200

1,025
3,561

Total
trade

31,596 36,358,932 12,512,012 19,542,564 1,299,525

2

l

Trade
Communi­
cation
and other
public
utilities

7,457

5

31,803 36,696,478 12,611,392 19,734,795 1,317,506 12
28,748,112 10,729,185 14,564,726
997,126 13 |_i
2,860,653 -715,805 1,799,866
220,133 14 0
28,456,559 10,594'566 14,410,U6 1,010,136 15 1
839,438 '224^801
520,640
14,862 16
3,408,538
805,987 2.165.896
248,005 17
1,882,576
395,304 1,277,771
85,374 18
'382,502
45,033 '307'403
17,390 19
120,890
21,795
3,903 20
84,239
47,945
13,675
27,918
1,344 21
249,523
52,454
169,179
10,097 22
6,082
948
4,470
295 :23
50,383
13,086
29,289
2,309 24
211,455
40,157
6,522 25
144^600
2^310
274
1,764
232 26
2,133
371
1,230
123 27
775
320
327
13 28
3,151

720

2,058

75 29

5,364 1,668,060

508,635

959,515

53,821 30

72,477

320,527

59,2U

179,969

584,006

560,778

349,522

2n,256

33,504

61,227

35,767

13,523

71,796

8,941

4,798

46,914

34,500

132,794

124,219

76,712

47,507

.4
99

10
323

. 7
38

8
93

87
1,039

19

34
92

5
145

3
239

259
3,361

253
3,050

63
1,097

190
1,953

6
3U

3,518
33,880

856
13,380

2,174
16,918

202 33
953 34

3
89

5
6
316

59
12
131

5
1
25

25
9
199

-

15

35

15

49
83
233

23
26
140

116
123
259

116
118
240

63
68
135

55
50
106

5
19

10,398
2,579
15;367

9,276
592
5,924

787
1,833
586

51 35 .
71 36
936 57

33,515

61,235

35,630

13,595

72,689

8,925

4,894

46,697

34,553

135,916

127,048

77,606

49,442

23,228 53,375,897 U,821,957 17,574,489 1,178,624 31
8,575 3,320,581

8,868 5,329,635

789,435 2,160,306

787,879 2,169,192

138,882 32 .

138,999 58

Partnership returns of income for 1947, by industrial groups, for all returns, and returns with ordinary net incomej Number
of returns, receipts, deductions, ordinary net income, and compiled net profit - Continued
- PART II. - RETURNS SITH ORDINARY NET INCOME 6/ - Continued
(Money figures in thousands of dollars)
rial groups 1/ - to
Tirade - Continued
Retail - Continued

Receipts and deductions

Number of returns
Number of members
Receipts:
Gross receipts from business or
profession
Net profit from other partnerships,
syndicates, pools, etc.
Interest, other than on Government
obligations
Interest on Government obligations
(less amortizable bond premium)
unless wholly exempt from tax
Rents
Royalties 2
Net gain from sales of property other
than capital assets
Dividends
Other income 3/

Z/[

Total receipts
Deductions:
Cost of good sold
Inventory at beginning of year
Merchandise bought for sale.
Cost of labor, supplies, etc.
Inventory at end of year
Salaries and wages
:
Rent paid on business property
Repairs
interest on indebtedness
Taxes paid
losses by fire, storm, etc.
Bad debts
Depreciation
Amortization
Depletion 4/
Net loss ffcom other partnerships,
Syndicates, pools, etc.
Net loss from sales of property other
than capital assets
Other deductions

5/
6/

Total deductions

T333---stores, Package
including liquor Drug
market
stores stores
1milk
dealers

Eating
and
drinking
places

Auto­
motive
dealers

Building
Filling Sardware materials,
fuel,
stations
and ice

Second-hand
Other
stores,
Book and
station­ Sporting florists Jewelry retail
except
stores trade
dealers in ery stores goods
second-hand
automobiles

8/

7,145
16,071

1,717
3,696

84l>
1,814

1,044
2,277

4,299,979 352,024 704,821 1,400,855 1,015,913 2.217.608 5,627,527 835,046 818,586

44,340

4,574 8,891
9,597 19,250

16,403
36,673

12,788
28,939

57,326
124,196

22,956
50,957

22,059
44,256

660,166

72,642

47,806

525

1,746

1,360

207

174

233

299

107

395

737

194

1,721

72

431

334

1,771

7

225

142

70

124

3

30

54

15

1

4,675
55
175

2,211
38
55

7,481
141
1,158

4,414
64
289

2,519
63
140

1,289
29
126

1,074
5
147

580
5
5

94
x
20

238
17,296

174
12,820

192
15,484

293
21,622

15
3,498

152
8,034

101
4,790

12
341

4,317,883 353,786 710,514 1,424,986 1,032,615 2,244,074 3,657,414 841,563 828,851

666,904

686,053 1.300.283 2,841,503 647,778 620,085
142,797
98,255 207,464 32,785 137,983
708,578 1,215,493 2,747,363 643,436 646,469
24,654
73,561 178,619 15,038 15,934
189,776
87,026 291,943 43,481 180,301
70,959 329,003 156,057 41,196 41,523
19,795
63,883
26,298 17,288
6,678
2,532
3,907
12,344
2,254
25,374
2,066
5,254
998
1,375
4,394
16,734
6,747
6,076
8,284
42,484
€66
236
131
347
982
6,244
1,068
1,361
4,022
868
5,263
5,226
6,849
53,691
17,970
58
259
39
89
294
114
34
64
44
213
51
15
70
20
57

495,207
59,677
494,866
24,029
85,365
38,940
3,636
3,273
1,076
4,910
166
2,491
6,111
23
105
23

508

22

107

442

24

84

100

2

51

8,915
97
855

926
7

1,687
85
132

398
6,589

16
765

94
3,475

3,570,890
215,934
3,513,994
75,420
234,458
188,549
45,904
15,720
4,331
24,488
719
2,570
29,056
518
160
21

281,185
55,053
278,761
1,377
53,986
11,507
S,129
1,017
380
5,139
76
140
2,141
19
11

416

33

1,074

1,730
3,746

964

1,800

5

38

137

305

6

704
4
2

4,292
220
586

9,166
485
862

7
8
9

78
486
3,025 | 12,204

989
29,925

10
11

1
566

3
185

9
218

75,670

48,603

44,607

68,268 242,263 1,859,288 4,350,291. 12

47,725
12,140
46,059
3,404
13,878
5,488
1,535
348
586
725
22
105
479
2
5

30,843
8,253
31,094
572
9,076
3,747
1,769
117
69
440
16
125
259
2
7

32,713
7,927
35,229
680
11,123
1,888
1,000
127
36
324
IS
32
298
53
11

58,878 136,126
2,265 69,954
54,929 134,222
5,809 5,900
2,125 73,950
5,479 22,744
1,730 7,890
585
870
572
126
630 6,828
71
18
124 1,519
796 1,659
58
30
1
• 3

68

43

40

6

3

3

158,197 10,905 27,635

91,975

79,351

155,861

165,570

30,087

34,567

53*951

6,239

4,492

2,420

881,878 1,955,813 3,249,489 753,354 719,509

587,952

63,065

41,889

38,968

88,209 109,342

78,952

12,607

6,714

5,639
1
10

5
12
2
10
20

Compiled net profit

272

228
40

406

407,925

2,405

70
1
1

468

288,261

5

460

3

94

150,737

i
2

8

7

k

-

120

187,197

28,768
69,062

111

69

4,021,339 317,482 620,326 1,237,789

27,652
59,681

6

963,574
225,202
987,077
28,679
277,584
107,849
45,923
5,906
1,780
11,476
168
2,373
8,294
145
175
.31

-

3,537
7,885

Trade not
i illocable

67,756 238,031 1,839,939: 4,304,356

499,396
101,182
501,849
7,249
110,884
60,737
14,745
3,079
724
8,474
157'
434
4,792
49
53
4

296,544 36,304 90,188

For footnotes, see p, 23.

Furniture
and house
furnish­
ings

9,644
21,488

55,898
116,042

Ordinary net income
Income not included above:
Net’short-term capital gain
Net long-term capital gain
Deductions not included above:
Net short-term capital loss
Net long-term capital loss
Contributions

Tj

Apparel
and
acces­
sories

+
»

285
3,425

13
292

10
727

338
600

83
697

441
4,219

200
2,069

120
703

129
486

13
661

6
53

22
179

220
655
682

10
23
124

4
59
218

59
88
1,615

72
57
706

178
598
624

40
74
938

20
81
65

1
15
249

5
24
245

21
3
84

21

3
10

298,697 36,452 90,644

186,373

150,702

291,521

409,142

88,866 109,692

79,352

12,558

6,894

5,637

-

1,377,361 3,454,201
202.882 344,982:
1,380.761 5,451,877
93,997
■ 46,853
253,135 436,655
106,931; 209,501
S 26,814
30,066
6,883
14,856
6,352
5,157
15,825
27,890
664
409
3,504
8,008
15,194
26,698
144
272
80
532
39
128

4

13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28

14

199'

573

29

7,610 22,350

94,486

199,910

30

1

l
£
1

55,976 200,514 1,650,524 5,979,451

31

12,292 41,749 . 208,764

370,840

32

3
160

305
1,672

488
3,582

S3 •^
34’

5
10
406

119
82
643

335
154
1,857

35
36
37

12,275 41,491

209,897

372*564 '38

Table 1. - Partnership returns of income for 1947, by industrial groups, for all returns, and returns with ordinary net income: Number
of returns, receipts, deductions, ordinary net income, and compiled net profit - Continued
PART,II. - RETURNS T»tTH ORDINARY NET INCOME 6/ - Continued
Industrial groups 1/ - Continued
Service
BusineSv service
Amusement

Personal service
Receipts and deductions

Number of returns
Number of members
Receipts:
Gross receipts from business or
profession
Net profit from other partnerships,
syndicates, pools, etc.
Interest, other than on Government
obligations
Interest on Government obligations
(less amortizable bond premium)
unless wholly exempt frcm tax
Rents
Royalties 2
Net gain from sales of property other
than capital assets
Dividends
Other income

Z//
S/

Total receipts
Deductions:
Cost of goods sold
Inventory at beginning of year
Merchandise bought for sale
Cost of labor, supplies-, etc.
Inventory at end of year
Salaries and wages
Rent paid on business property
Repairs
Interest on indebtedness
Taxes paid
losses by fire, storm, etc.
Bad debts
Depreciation
Amortization
Depletion 4/
Net loss £rom other partnerships,
syndicates, pools, etc.
Net loss from sales of property other
than capital assets
Other deductions

5/

Total
Hotels Laundries, Photo­
personal and
cleaning, graphic
Total
service service other and
studios
lodging dyeing
places
117,455
270,645

42,357 8,489
91,761 20,272

4,069,327 1,131,867 335,766
8,477

2,169 ■2,014

12,434
27,408

Barber
Total
Other
Total Motion
bile
and
Funeral personal business Advertis- repair amuse- picture
beauty service service service ing
serment
theatres
shops
vices
and
garages

2,638 11,674
5,621 23,041

3,500
8,023

429,004 62,458 110,880 140,176
122

8

25

7,082
16,344

53,583 287,894

1,579 15,569 11,702
3,629 33,131 29,308

2,215
6,167

29,559
76^132

144,577 343,754 586,494 165,127 1,468,331

4,281
10*804

8,062
19*401

3,322
7*706

1,110
3,630
2^352 • 9*343

207, a 0 418,412

190,528

33,065 194,819

394

107

341

1,649

450

3,920

963

638

315

8
8

315

1,647

559

374

75

12

14

83

1

160

12

65

208

81

636

226

54

12

399

79

41

21

2

4

11

"

48

11

26

82

44

160

17

33

7

33,313 30,972
337
308
551
269

1,082

281

2,430
10
100

5,951
'613
678

3,838
57
299

3,788
840
305

292

1,347
40
68

593
19
7

365

2

389
21
61

18
140
1,410 12,020

103
4,805

537
5,923

82
603

39
1,269

24
631

4
U

11
627

209,395 421,900

192,136

49,213
1,844
1,717
1,035
28,864

227
6,838

90
3,007

178

12

359
1
16

513
11
41

106
17
35

3,367
42
50

70
4
n

17
1,115

6
133

54
1,227

60
1,178

178

103
1,979

38
1,330

-

4,162,523 1,175,940 372,841

431,614 62,904 112,563 142,098

53,920 294,037

1,177,032
73,066
485,801
696,293
78,128
608,661
155,594
43,904
13,604
56,922
2,039
7,355
92,361
625
796
226

445,315
28,106
160,608
286,498
29,897
162,065
51,942
24,041
7,697
21,607
685
2,396
39,557
248
273
32

150,350
6,946
74,545
75,339
6,480
38,869
24,517
11,975
4,888
10,578
250
477
16,119
113
37

165,838 26,666 23,383 58,642
3,716 3,450 1,448 10,859
18,227 14,264 4,541 39,228
147,784 13,254 18,771 20,406
3,889 4,302 1,377 11,851
78,388 8,110 21,372 8,197
10,004 2,924 8,780 2,202
7,749
558 1,091 2,215
1,815
132
152
605
6,724
675 1,085 2,088
279
8
108
18
517
144
63 1,158
14,036 1,388 2,124 4,893
78
4
10
42
•
190
1
42
’«.
—
4
9

20,436 132,447
1,687
3,027
9,803 41,225
10,944 91,017
1,998
2,822
7,129 35,021
3,515
5,990
453
1,743
105
712
457
2,619
22
72
37
689
997
5,929
1
38
3
27
19
6

1,482

419

192

192

166,328 51,486

64,539

622,546

—

8

8

14

5

31

8,770 12,987 22,483

6,063

42,176

Total deductions

2,783,147

922,605 509,851'

350,353 49,388 71,214 102,557

Ordinary net income 6/
Income not included above:
Net short-term capital gain
Net long-term capital gain
Deductions not included above:
Net short-term capital loss
Net long-term capital loss
Contributions

1,379,376

253,335 62,990

81,261 13,516 41,349 39,541

Compiled net profit

1,386,127

Tj

3,625
7,396

Professional and social services
j ^edical and health services
Total pro- Accountfessional ants,
ïotal
Physiand
auditors, medical cians,
Other
social
and book- and
surgeonsf Dentists medical
services keeping health and
services
services service oculists

39,242 227,500
14,678

66,537

750
11,307

308
5,147

194
3,573

86
627

2
60

14
279

12
539

69

38
764

284
615
4,407

39
131
1,208

6
455

24
49
317

1
8
49

14
54

2
45
317

6
15
16

17
126
152

81,584 13,520 41,574 39,728

14,710

67,044

-

257,412 66,296

For footnotes, see p# 23*

Table 1. — Partnership returns of income for 10 4 7

k™

146,160 348,154 607,835 174,804 1,484,440
85,077
959
27,859
57,139
880
13,911
2,290
157
107
739
8
362
643
4

192,812
16,078
140',660
55^919
19,845
26,531
13,265
2,437
1,021
3*502
134
733
6,144
36
79
4
17

166,992
8,117
49,015
115,325
5,465
64,715
24,648
8,517
1,777
15,596
696
624
22,985
*109
124
59

55,305
1,171
8,367
45,934
167
14,661
10,373
2,758
617
5,715
215
76
5,843
22

812

18,139 26,125 170,768

1

114,862
4^792
21*093
93^030
4,053
300,502
53,980
5,523
1,830
11,077
373
2,233
12,985
124
245
94

4,137
133
275
3,896
*167
75,108
6,730
*379
400
1,932
11
395
1,219
23
12
5

22

77

36,997

192,174

121,454 272,911 478,422 132,605

13

75

24,706 75,243 L29,413

34
26

33,461 196,303

53,507
1*816
12^228
41^216
1*753
56*093
12*365
2,374
*623
3,252
' 52
672
5,800
64
34
33

8,251
86
2,462
5^758
55
21,70’?
5,533
627
121
1,038
' 26
71
2,019
15

4,359
*225
1,622
2*771

3

21

0

7

36

2

23,115

57,622

23,911

5,421

28,290

'2 5 9

4,562
1*287
*164
46
262
3
501

40,897
1*505
8*144
32,687
1*439
29^824
5*545
1*583
*456
1,952
26
598
3,280
49
34
34

696,079

113,471 192,527

63,324

42,199

788,361

95,924 229,373

128,812

16,835

83,726
1
305

16,626 112,577

72

35
725

91
2,735

3
644

260.
1,785

79
178

.5
501

178

4
18

11

26
53
47

105
138
706

2
24
227

80
162
2,227

28
83
510

38
603

13
253

7
35

18
315

24,668 75,877 131,290

42,593

787,938

95,560 229,238

128,724

16,815

83,699

99

profit

T/

1,386,127

257,412 66,296

81,584 13,5201 41,574 1 39,Yza

/.lu

’

» *

r ” ~i

:

For footnotes, see p. 23«

Table 1, - Partnership returns of income for 1947, by industrial groups, for all returns, and returns with ordinary net incomes
of returns, receipts, deductions, ordinary net income, and compiled net profit — Continued
PARTII. - RFTURNS VTIIH ORDINARY NET INCOME 6/

Number

- Continued

(Money figures in thousands of dollars)

Receipts and deductions

Service - Continued
Professionaland social services—Continued
Engi­ Educa­ Other
neer­ tional pro­
insti­ fes­ Other
ing
sional ser­
tu­
Legal and
vices
ser­ archi­ tions and
social and
and
vices tec­
tural agen-„ ser­ repair
cies vices
ser­
vices

802 11,186
12,803 2,847
764
Number of returns
35,524 6,889 1,668 1,846 25,969
Number of members
Receipts:
Gross receipts from business or
603,363 189,936 28,878 20,532 250,987
profession
43
Net profit from other partnerships,
520
209
4
1,547
syndicates, pools, etc.
17
Interest, other than on Government
316
20
3
19
obligations
16
4
Interest on Government obligations
77
17
(less amortizable bond premium)
unless wholly exempt from tax
60
39
368
364
Rents
1,682
159
2
297
Royalties 2/
230
114
4
33
Net gain from sales of property other
152
79
than capital assets
75
304
36
1
10
Dividends
356
217
Other income
2,516
962
694

Zj

5/

Total receipts
Deductions:
Cost of goods sold
Inventory at beginning of year
Merchandise bought for sale
Cost of labor, supplies, etc.
Inventory at end of year
Salaries and wages
Rent paid on business property
Repairs
Interest on indebtedness
Taxes paid
Losses by fires, storm, etc.
Bad debts
Depreciation
Amortization
Depletion 4/
Net loss from other partnerships,
syndicates, pools, etc.
Net loss from sales of property other
than capital assets
Other deductions 5/

Total
fi­
nance
insur­
ance
and
real
estate

Finance, Insurance, and real estate
Finance
In­
Insur­
Secu­
ance
vest- .rity
ment and
agents,
Other
Real
bro­
Total trusts com­
finance and
modity finance 9/ kers
estate
in­
and
ex­
vest­ change
ser­
ment brokers
vices
compa­ and
nies dealers

74,117 7,973 3,353 1,951
216,145 34,344 14,942 11,721
779,648 255,305 7,998 204,165

2,669 6,309 55,722 4,113
7,681 14,404 155,275 12,122

Total
con­
struc­
tion

49,199
108,995

Special
General trade
contrac­ contrac­
tors
tors

14,089
■33,036

2,880 2,388 12,641
6,894 6,283 28,295

1,505

406

3,046 1,197

4,464

3,964

345

155

7,154

7,071

13

12

5,029

338

7,994 3,044

900

646

220

34

3,546

5,217

294

10

518

5,159 1,043

2,929

1,187

56

383

334

273

53

8

476

469

1

1

60

443,091 3,546 1,881
192
20,177 6,404 1,837
413
117,594 69,611 1,817 67,047

1,473
4,154
747

463 435,703 3,379
54 13,579
140
486 46,377 1,120

7,366
174
3,570

4,754
90
2,991

2,408
80
520

204
4
59

22,007
4,726
3,322

20,356
4,677
3,096

1,454
10
189

65
1
5

1,805
1,107
1,180

3,012
2,966

772 2,325 2,071
2,015 13,258 1,761

551
18,033

389
12,037

147
5,508

15
488

2,449
39,977

2,240
57,906

205
1,840

133

911
5,405

7,202

27,893 22,725 13,497
26,122 9,088 1,038

6,216
5,084

83,835 12,709 1,239 6,454
9,715 2,671
395
111
42,091 9,538 1,107 5,825
37,862 1,770
663
147
5,833 1,270
126
429
227,615 121,446 1,657 111,016
34,232 12,174
319 10,495
32,161 1,071
414
120
49,159 8,193
982 3,550
82,335 7,487
750 5,749
893
39
159
83
863
7,640 4,994
38
68,537 2,108
306 1,225
—
262
36
34
51
4,495
679
272
357
29
10
19

1,604

70,149 219,310 769,752 76,852 3,360,108 1,613,365 1,594,695 152,048 2,826,679 2,475,362 259,634 77,126 431,923
5,016 17,923 48,402 4,801 2.294.174 1,175,370 1,016,849 101,955 1,588,446 1,337,647 211,700 27,915 206,750
796 23,145
78,015 1,765 229,178 220,994 6,696
37,593
352 117,373
2,165 1,796 4,896
2,606 10,110 18,575 3,868 872,071 266,401 581,779 23,891 681,726 508,483 162,532 6,237 148,641
964 1,447,028 907,473 460,900 78,655 916,895 839,365 49,999 21,225 57,453
960 6,088 29,040
343 22,489
36,097 103,845 2,356 239,353 231,195 7,327
71 4,109
383 142,298
715
35,857 4,905 10,509 46,811
51,794
60,956 114,273 7,731
8,773 41,307 54,744 10,118 182,960
1,424
431
7,650
49,375
47,437
10,048
902
18,234
7,284
1,360 5,094 15,299 1,665
46,302 3,146 4,344 4,854
53,987
8,182 1,946
543
27,868
17,740
537
586 29,961
315
17,059
577
2,398
358
17,991
1,282
6,599
3,843
566 39,074 1,326
3,661
40,553
818 1,446 4,475
16,127 i , a 6
37,947
14,118
995
31,461
988 1,344 72,509
102
195
102
19
2,088
1,884
712
361
332
10
37
149
575
30
656
1,625
259
3,187
1,958
2,094
220
653
5,501
4,093 1,153
840
91,159 3,768 4,151 7,875
18,377 3,393
99,441
36,256
577 1,349 63,940 1,140
58,026
SO
80 ' 14
12
106
183
266
127
2
51
195
576
6
184
1,309
1,046
291
25
628
312
130 3,290
396
356
411
22
1
411
1
239
88
109
86
2

371

241

213,412

92,482

68

101,060
241,514

11,963

6,249 1,542

11,290 60,330 125,265 13,595

5

106,566
255,505

3,202

10,898

291,299 92,109 2,789 78,030

17

2,219
4,862

Mature
Total
of
agricul­
busi­
Agri­
ture,
culture Fish­ ness
forestry, Farming ser­
not
ery
and
allo­
vices
cable
fishery

43,142 214,720 245,866 63,757 3,324,716 1.588.221 1,585,414 151,081 2,743,022 2,394,330 255,628 76,899 415,908

69,326 32,576 6,018 3,517 24,975

12

32,891
71,097

Con­
struc­
tion
not
allo­
cable

40,108 28,732 3,668 13,101

610,254 191,860 29,620 21,411 252,117 1,472,733 406,819 34,321 302,349
11,238 36,391 5,866 3,723 124,604
1,340 1,137
280
86 12,946
409 4,814 1,931 1,436 73,200
9,521 31,917 4,025 2,455 54,504
254 16,046
32 1,477
370
110,953 49,270 6,068 3,010 19,827
28,290 4,653 1,180
762 5,769
1,444
584
645
97 1,645
199
42
455
113
567
274 2,521
3,340 1,888
391
169
12
125
6
79
792
290
61
23
680
229 4,761
3,369 1,405
965
19
8
10
70
166
26
7
48
45
13
18

Agriculture, forestry,and fishery

Construction
Fi­
nance,
insur­
ance,
and
real
estate
not
allo­
cable

938

439

88

347

4

28

469

22

631

605

109,569 11,361

134,646

116,172

108

17

9

152

8,498 9,055 41,503

Total deductions

229,616 127,330 21,452 11,683 185,630

883,758 263,633 8,687 218,252

36,694 129,991 454,802 35,332 2,840,631 1,411,270 1,299,946 129,415 2,042,536 1,735,232 235,234 58,319 322,437

Ordinary net income 6/
Income not included above:
Net short-term capital gain
Net long-term capital gain
Deductions not included above:
Net short-term capital loss
Net long-term capital loss
Contributions

380,638 64,530 8,168 9,728 66,487

588,975 143,186 25,634 84,097

33,455 89,319 314,950 41,520

519,477

202,095

15 1,466
243
627 36,131 2,625

594
4,878

258
3,389

363
24
86
896
406 10,016

90
105
506

82
153
1,101

41
94
554

Compiled net profit

380,382 64,609 8,189 9,960 66,566

35,681 89,445 341,272 43,687

523,613

205,053

Tf

117
634

60
178

42
38
927

9
1
149

-

,-

39

255

17
151

_

1
2
20

17
5
67

-

18

6,567 4,843 1,050
51,677 12,294 3,201

3,744
6,535

49
2,558

7,003
3,069
11,613

5,014
565
304

27
77
277

6,526 1,485
1,982 1,340
104
685

625,534 151,130 26,956 88,493

738,130 24,400 18,807 109,486

294,749 22,633

784,143

324
1,233

12
256

1,873
22,281

1,723
21,725

83
293

22
118

299
4,007

35
59
487

6

60

660
399
2,008

650
331
1,958

10
8
34

26
8

66
97
174

295,725 22,835

805,230

758,639 24,724 18,913 113,455

For footnotes, see p, 23,

r o

Table

Z,

— Partnership returns of income for 1947, with gross receipts from business or profession, by industrial groups and by gross receipts from business classes,
for all returns! Number of returns, gross receipts fremi business or profession, and ordinary net income or deficit
(Gross receipts from business classes and money figures in thousands of dollars)

Industrial groups

All industrial groups
Mining and quarrying
Crude petroleum and natural gas production
Other mining and quarrying
Manufacturing
Food and kindred products
Beverages
Tobacco manufactures 10/
Textile-mill products, including cotton
Apparel and products made from fabrics
Leather and products
Rubber products 10/
Lumber and timber basic products
Furniture and finished lumber products
Paper and allied products 10/
Printing and publishing industries
Chemicals and allied products
Petroleum and coal products 10/
Stone, clay, and glass products
Iron, steel, and products
Nonferrous metals and their products
Electrical machinery and equipment
Machinery, except transportation equipment and
electrical
Automobiles and equipment, except electrical 10/
Transportation equipment, except automobiles 10/
Other manufacturing
Manufacturing not allocable
Public utilities
Transportation
Trucking, local; and warehousing
Other transportation
Communication and other public utilities
Trade
Wholesale
Retail
Department, general merchandise, dry goods
Food stores, including market milk dealers
Package liquor stores
Drug stores
Apparel and accessories
Furniture and house furnishings
Eating and drinking places
Automotive dealers
Filling stations
Hardware
Building materials, fuel, and ice
Second-hand stores, except dealers in second-hand
automobiles
Book and stationery stores
Sporting goods
Florists
Jewelry stores
Other retail trade
Trade not allocable

§/

For footnotes, see p. 23<

Number
of re­
turns

Gross
receipts
from
business
or pro­
fession

Ordinary
net in­
Number
come less of re­
deficit 6/ turns

Under
Gross
receipts
from
business
or pro­
fession

888,862 59,253,157
15,579
818,708
7,612
421,434
5,967
397,274
74,978 7,905,673
9,882 1,565,410
1,762
197,590
175
21,685
1,717
535,099
9,424 1,696,165
1,125
189,956
168
15,714
11,331
870,753
5,085
350,112
473
81,752
6,983
386,509
1,745
227,538
180
42,682
4,152
191,597
3,172
343,700
3,148
240,552
963
89,621
4,652
409,690

7,678,501 120,177
123,498
3,604
63,039
2,530
60,459
1,074
953,987
9,465
113,560
652
14,634
152
1,020
41,565
91
172,204
521
18,682
91
1,900
126,220
1,553
44,077
913
_
11,217
83,455
900
30,651
300
5,422
30,757
840
59,106
310
33,929
400
12,663
190
68,835
580

380
75,493
39,107
534
4,555
305,856
3,374
231,514
20,776
763,995
19,544
729,894
14,190
453,404
5,354
276,490
1,232
34,101
572,212 37,818,183
45,280 13,048,982
294,759 20,305,945
15,138 1,529,105
59,401 4,515,675
4,965
565,558
9,295
720,170
18,076 1,435,828
14,208 1,040,815
66,110 2,424,998
24,521 3,685,628
24,022
873,869
10,165
829,731
7,795
673,571
1,840
73,538

8,442
2,520
43,126
50,024
125,169
117,115
71,965
45,150
8,054
3,233,855
765,495
2,107,284
136,756
287,016
35,562
88,999
183,736
147,784
270,158
404,652
86,220
108,292
77,905
12,448

911
721
5,097
4,666
5,315
1,351
431
24,456
3,196
19,154
621
2,155
110
200
1,050
1,241
6,360
683
1,747
220
623
540

1,805
1,638
13,092
12,161
8,863
3,298
931
66,838
7,553
54,141
1,554
5,907
412
674
2,836
5,717
18,802
1,864
5,463
556
1,686
1,251

6,547
5,204
11,978
40,887
203,180
561,074

140
181
240
281
2,964
2,106

351
511
562
778
7,237
5,344

1,028
1,306
1,981
3,949
30,959
32,173

50,169
48,094
70,363
246,291
1,920,542
4,465,256

315,179
7,306
4,540
2,766
22,575
1,708
334

_

Ordinary
net in­
case less
deficit

5 under 11I
Gross
Ordinary
Number receipts net in­
of re­ from
come less
turns business deficit
or pro­
fession

72,625 107,789
11/3,252
1,776
11/3,636
926
384
850
11/2,208
7,365
11/299
705
H/458
152

classes
10 under 15
Gross
Number receipts
of re­ from
turns
business
or pro­
fession

796,410
12,990
6,788
6,202
54,407
5,040
1,008

243,493
694
11/1,054
1,748
13,602
880
11/90

78,440
1,006
515
493
6,046
723
81

970,748
12,600
6,403
6,197
75,843
9,180
1,035

537
3,411
793

38
620
119

110
382
50

1,393
4,612
616

51
H/515
11/143

3,940
2,182

1,033
244

1,474
590

10,423
4,348

3,226
1,048

1,173
500

14,548
6,338

2,265
631

147
H/177

742
170

5;688
1,320

1,803
64

671
130

8,649
1,622

2,064
765
1,022
347
1,361

H/494

672
330
370
60
520

5,109
2,430
2,787
444
5,914

863
1,848
938
75
621

460
250
321
381

5,640
3,024
4,072
1,448
4,722

480
300
4,063
3,862
3,027
835
201
26,712
2,286
22,787
601
3,014
221
290
1,193
1,153
7,472
1,071
2,833
342
651
270

3,492
2,243
29,752
28,399
22,340
6,059
1,353
199,531
16,053
171,544
4,580
22,512
1,787
2,267
8,866
8,447
56,332
8,046
20,947
2,572
4,677
1,914

998
320
8,761
8,295
6,820
1,475
466
23,053
3,336
18, 269
551
1,952
167
198
414
1,091
5,807
787
2,295
85
808
440

292
300
2,725
2,565
1,914
651
160
25,008
2,175
21,072
771
3,394
201
304
1,194
955
6,830
1,071
2,519
451
492
251

3,703
3,827
33,256
31,315
25,233
8,080
1,943
311,419
26,912
262,189
9,455
42,292
2,492
3,835
15,131
11,958
85,076
13,550
28,662
5,632
6,037
3,044

40

329
841
1,427
3,785
22,215
11,954

43

80
150
170
282
2,157
1,761

-

13/14
86

13/397
11/64

no

no

_
H/508
H/716
2,570
2,205
2,011

194
365
3,071
429
2,652
4
45
H/17
17
45
80
803
118
753
17
189
177

1^8
Ü /26
H/45

52
468
13/10

no

190
451
2,905
1^639

1
2
3
4
S
6

‘ 7
8

165
1,247
156

80
451

Ordinary
net in­
come less
deficit

n/5

122
692
2,822
1,4481

9
10

11
12
13
14
15
16
17
18
19
20

21

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

Table 2,. - Partnership returns of income for 1947, with gross receipts from business or profession, by industrial groups and by gross receipts from business classes,
for all returnsj Humber of returns, gross receipts from business or profession, and ordinary net income or deficit — Continued

Industrial groups - Continued

54 Service
Personal service
55
56
Hotels and other lodging places
57
. Laundries, cleaning, and dyeing
58
Photographic studios
Barber and beauty shops
59
Funeral service
60
61
Other personal service
62
Business service
65
Advertising
64
Automobile repair services and garages'
65
Amusement
66
Motion picture theatres
67
Professional and social services
68
Accountants, auditors, and bookeeping service
69
Medical and health services
70
Physicians, surgeons, and oculists
71
Dentists
72
Other medical services
Legal services
75
74
Engineering and architectural services
Educational institutions and agencies
75
76
Other professional and social services
77
Other service and repair
78 Finance, insurance, and real estate
79
Finance
80
Investment trusts and investment companies 10/
81
Security and commodity exchange brokers and
dealers
82
Other finance 9/
85
Insurance agents, brokers, and services
84
Real estate
Finance, insurance, and real estate not allocable
85
86 Construction
87
General contractors
88
Special trade contractors
89
Construction not allocable
90 Agriculture, forestry, and fishery
91
Farming
92
Agricultural services
93
Fishery
94 Nature of business not allocable

me

(Gross receipts from business classes and money figures
Total
Under
Gross
Ordinary
Gross
Ordinary
Number
receipts net in­
receipts net in­
Number
of re­
come less
from
come less of re­
from
business deficit 6/ turns
business deficit
turns
or pro­
or pro­
fession
fession
130,954
47,371
10,257
13,858
5,182
12,387
3,741
3,946
8,237
1,659
17,038
14,708
2,538
31,122
4,441
8,416
3,372
1,160
3,884
13,096
3,228
1,049
. 892
12,478
87,647
9,497
5,811
2,607

4,240,491
1,190,274
563,209
449,691
66,496
114,418
141,558
54,902
298,852
147,398
361,346
646,733
172,475
1,484,812
207,387
421,608
190,657
35,328
197,623
604,397
197,672
32,563
21,185
258,474
826, 536
282,966
9,129
229,233

1,346,793
244,173
58,205
78,929
12,794
40,929
39,012
14,304
63,854
24,571
72,959
117,532
41,390
783,711
95,690
228,731
128,757
16,757
83,217
379,702
62,525
7,482
9, 581
64,564
556,886
132,385
24,301
77,059

3,079
6,573
67,155
4,422
52,592
15,678
54,497
2,417
120,402
113,778
3,272
3,089
15,722

44,604
217,257
261,533
64,780
3,482,525
1,694,605
1,626,859
161,061
2,958,463
2,582,091
268,865
90,199
438,583

31,045
88,975
295,325
40,201
502,333
190,146
290,523
21,664
733,527
691,376
23,470
15,941
102,455

28,760
12,263
2,098
2,517
980
5,207
221
1,240
2,203
290
3,415
3,328
181
4,097
902
593
141
70
382
1,670
441
301
190
3,454
8,271
883
,267

75,607
33,237
5,255
6,884
2,222
14,929
542
3,405
5,114
645
9,507
8,188
414
9,512
1,988
.1,557
308
238
1,011
5,968
916
566
517
8,049
18,517
2,152
541

434
1,182
3,822
1,632
5,272
11,454
484
1,089
19,958
6,752
1,258
3,755
15,173
5,133
361
1,030
29,837
82,480
28,416
78,882
641 ... 1,695
1,722
720
9,006
3,935

in thousands of dollars)
Gross receipts from business classes
10 under 15
under 10
Gross
Ordinary
Gross
Number receipts
Number receipts net in­
come less of re­ from
or re­ from
business
turns
turns business deficit
or pro­
or pro­
fession
fession
16,343
5,831
894
1,794
460
1,602
481
600
1,090
200
2,686
1,387
160
3,714
441
861
130
ISO
581
1,851
310
130
121
1,635
3,407
338

610

66,296
26,808
2,868
5,241
1,454
13,322
566
3,357
4,157
499
8,868
3,727
279
14,797
3,065
2,565
582
497
1,486
6,918
1,164
438
649
7,939
17,700
1,840
697

1,336
8,160
17,095
4,837
59,622
14,246
42,970
2,406
208,362
199,656
4,055
4,403
17,302

864
4,849
7,797
3,214
23,472
4,329
18,078
1,065
83,686
81,122
1,428
1,116
6,229

187
860
1,748
461
5,346
1,593
3,481
272
17,102
16,391
331
550
1,457

21,481 24,766
11,766 10,532
1,717
1,410
1,632 - 2,535
761
295
3,966
7,462
11/132
390
1,163
1,099
816
1,512
134
210
3,745
2,420
2,487
11/144
11/95
210
3,646
4,444
612
1,119
456
882
141
148
36
150
272
591
2,481
1,492
151
320
170
55
182
170
2,179
2,844
9,774
4,469
342
1,529
38
11/285

182,007
76,266
12,805
18, 542
5,447
27,805
3,115
8,552
11,082
1,587
27,863
18,341
1,635
27,492
4,595
6,768
1,166
1,174
4,428
11,197
2,492
1,344
1,296
20,963
32,437
2,345

194
1,104
2,380
643
8,001
1,894
5,767
340
28,261
27,130
510
591
2,376

635
2,786
4,961
498
7,929
1,123
6,363
443
29,809
28,835
642
305
3,451

151

Ordinary
net inicome less
deficit -

200,953
71,176
10,943
22,352
5,697
19,130
5,950
7,104
13,534
2,485
33,477
16,799
1,905
45,640
5,513
10,703
1,610
1,947
7,146
22,584
3,802
1,565
1,473
20,327
42,485
4,174
1,519

72,070
21,778
2,146
6,074
1,737
7,674
1,673
2,474
4*978
983
10,067
2,537
44
26,302
3,406
4,688
941
1,130
2,617
15,096
2,022
475
616
6,408
22,948
2,322

2,589
10, 714
21,848
5,749 »
66,475
20, 281
42,847
3,347
209,837
201,213
4,011
4,241
17,880

1,164
6,199
11,040
3,477
22,076
6,499
14,573
1,004
84,040
81,397
1,100
1,448
6,738

1,180

Number
of re­
turns

15 under 20
Gross
receipts
from
business
or pro­
fession

Ordinary
net income less
deficit

j
i
i

194,297
69,259
13,462
24,560
4,933
13,168
7,717
5,399
11,879
2,120
29,923
19,375
3,037
47,402
7,227
11,952
2,993
3,796
5,163
21,205
4,731
,659
1,628
16,459
34,175
4,190
“
1,560

68,342
19,011
2,691
6,441
1,342
4,743
2,196
1,598
4,579
663
7,235
4,190
590
27,969
4,321
6,205
1,931
1,939
2,335
14,220
2,572
/ 96
555
5,358
17,801
2,258

ISO
2,8^0
644
11,243
695
.12,174
372
-6,56C>
4,646 . 80,741
1,144
20,236
3,262
56,365
240
4,140
10,345 177,840
9,885 169,929
3,255
190
4,306
250
19,802
1,152

1,196
6,317
5,264
5,962
24,715
5,379.
17,589
1,745
67,573
65,689
1,057
746
6,327

11,189
3,977
762
1,413
280
770
442
310
684
120
1,734
1,116
173
2,726
421
690
170
220
300
1,213
272
40
90
952
1,948
237
87

54
55
56
57
56
59.
6Ó
61
62
65
64
65
66

67
68
69
70
71
72
75
74
75
76
77
78
79
80
81

1,062

82
83
84
85
86
87
88

89
90
91
92
95
94

For footnotes, see p. 23.

CO

Table 2. - Partnership returns of income for 1947, with gross receipts from business or profession, by industrial groups and by gross receipts from business classes,
for all returns! Number of returns, gross receipts from business or profession, and ordinary net income or deficit - Continued

Industrial groups

5
4
S
6

7
8
9
10

11
12

13
14
15
16
17
18
19
20
21

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

All industrial groups
Mining and quarrying
Crude petroleum and natural gas production
Other mining and quarrying
Manufacturing
Food and kindred products
Beverages
Tobacco manufactures 10/
Textile-mill products, including cotton
Apparel and products made from fabrics
Leather and products
Rubber products 10/
Lumber and timber basic products
Furniture and finished lumber products
Paper and allied products 10/
Printing and publishing industries
Chemicals and allied products
Petroleum and coal products 10/
Stone, clay, and glass products
Iron, steel, and products
Nonferrous metals and their products
Electrical machinery and equipment
Machinery, except transportation equipment and
electrical
Automobiles and equipment, except electrical 10/
Transportation equipment, except automobiles 10/
Other manufacturing
Manufacturing not allocable
Public utilities
Transportation
Trucking, local; and warehousing
Other transportation
Comnunication and other public utlities
Trade
Wholesale
Retail
Department, general merchandise, dry goods
Food stores, including market milk dealers
Package liquor stores
Drug stores
Apparel and accessories
Furniture and house furnishings
Eating and drinking places
Automotive dealers
Filling stations
Hardware
Building materials, fuel, and ice
Second-hand stores, except dealers in second-hand
automobiles
Book and stationery stores
Sporting goods
Florists
Jewelry stores
Other retail trade 8/
Trade not allocable
For footnotes, see p. 23.

(Gross receipts from business classes and money figures in thousands of dollars)
Gross receipts from business classes - Continued
20 under 25
25 under 30
30 under 40
40 under
Gross
Ordinary
Gross
Gross
Ordinary
Gross
Ordinary
Numljer receipts
Number receipts net in­
Number receipts
net in­
Number receipts
net in­
of re­ from
of re­ from
come less
of re­ from
come less of re­ from
come less
turns
turns business deficit
business
turns business
business
deficit
turns
deficit
or pro­
or pro­
or pro­
or pro­
fession
fession
fession
fession
47,874
702
241
461
4,341
454
80
-

90
451
40
-

771
241
592
90
281
120
240
60
241

1,075,483
15,603
5,249
10,354
97,585
10,224
1,855
•1,980
10,244
946
•

17,143
5,491
13,417
2,054
6,317
2,632
5,345
1,420
5,398

-

_

-

-

270
6,012
4,458
200
1,082
24,335
1,051
23,603
781
17,585
270
6,018
31
732
21,289
480,238
1,532
34,362
18,361
414,202
873
20,052
3,246
73,263
250
5,662
342
7,742
1,023
23,035
751
16,702
5,490 : 123,863
1,001
22,531
2,186
49,073
361
8,261
8,523
370
80
1,785
140
ioa
81
281
1,786
1,396

3,194
2,166
1,876
6,525
40,149
31,674

243,879
3,297
1,053
2,244
19,464
1,780
251
-

400
2,012
34
-

3,003
61
4,727
511
925
. 531
1,371
533
1,985

40,511 1,111,635
447
12,009
246
6,565
201
5,444
3,341
91,603
501
13,749
122
3,349

-

-

61
. 310
50
_

511
510
-

331
31
240
131
101
20
232

1,794
8,557
1,333
-

14,044
8,451
-

9,154
831
6,521
3,509
2,755
560
6,270

-

1,513

228,585
2,330
1,443
887
17,352
1,743
490
232
1,675
11/128

-

1,505
940
932
143
1,651
-

3,836
3,719
2,671
1,048
117
64,002
7,968
52,510
1,734
7,266
527
1,179
2,693
2,479
17,326
2,416
5,551
1,200
1,040
336

150
170
803
773
562
211
30
20,843
1,488
18,171
712
3,206
351
552
1,056
741
5,383
972
1,760
610
431
171

4,179
4,772
22,108
21,282
15,463
5,819
826
572,537
41,116
498,881
19,389
88,259
9,760
9,545
28,678
20,310
147,986
26,584
48,587
16,916
11,791
4,710

1,021
853
4,514
4,280
3,027
1,253
234
75,363
8,547
63,217
2,034
7,484
717
1,603
4,229
3,555
20,591
5,041
5,249
2,389
1,575
1,006

408
273
426
1,503
6,153
3,524

70
110
241
182
1,823
1,184

1,818
3,016
6,500
4,946
50,096
32,540

171
207
1,179
1,275
6,912
3,599

is

429,077
3,345
801
2, 544
51,696
3,253
735
•

M

48,125 2,155,821
20,425
455
8,484
184
271
11,941
5,984 177,979
601
26,803
81
3,591
-

-

.

363,882
3,536
1,423
2,113
27,754
2,531
li/7

«.

4,221
22,701
3,144

1,019
4,134
364

80
431
70

3,654
19,151
3,159

531
2,902
463

754
380

25,821
13,154

5,337
1,562

523
501

23,311
13,276

4, 544
1,959

-

593
100
-

251
260
180
71
530

_

-

20,815
3,587
-

8,621
8,825
6,089
2,435
11,409

_
-

«

140
150
171
382
3,277
2,165]

4,780
5,293
5,907
13,543
115,649
75,095

1
2
3
4
5
6

7
9
10

11
12

-

5,385
129
-

1,814
2,046
1,425
547
3,105

•

523
100
-

170
201
141
70
300

-

23,377
4,449
-

7,799
8,996
6,529
3,114
13,517

_

222
7,773
200
7,032
45,126
1,306
1,246
43,141
866
29,908
13,233
380
1,985
60
56,247 1,265,733
2,142
74,902
31,942 1,115,736
1,534
53,473
6,524 227,608
471
16,496
884
30,630
1,664
58,580
1,215
42,624
8,379 291,547
1,983
69,185
5,423 119,444
972
54,303
b63
22,905
110
3,769

Number
of re­
turns

8

121
652
90

-

2,045
1,562
2,536
151

«

64,343 2,239,872
798
27,510
445
15,303
353
12,207
5,197 180,286
732
25,363
171
6,124

SO
Ordinary
net in­
come less
deficit

-

6,394
916

.

-

455
1,476
661
379
3,196

._

..

815
1,516
8,081
7,739
5,650
2,089
342
156,840
14,054
134,268
5,449
19,193
1,696
4,144
8,129
5,805
58,577
8,187
13,089
4,676
3,204
781
836
650
995
2,669
16,288
8,518

191
8,313
111
4,976
775
34,449
763
33,973
22,567
SOI
11,406
262
476
10
29,274 1,313,251
2,085
94,105
25,157 1,128,422
1,377
61,830
5,733 258,429
623
27,831
1,013
45,470
1,573
70,205
855
38,649
5,651 251,386
1,514
67,424
2,353 105,935
784
55,329
512
23,164
111
4,996
80
70
160
260
2,508
2,032

3,551
3,167
7,275
11,711
112,070
90,724

13
14
15
16
17
18
19
20
21
32

23
24
25
26
27
28
29
30
31
32
33
34

1,637
H/412
5,652
5,649
3,791
1,858
3
156,667
16,382
129,419
6,884
20,506
5,012
6,418
9,868
4,760
31,647
7,570
11,678
4,569
2,719
1,082

36
37
38
39
40
41
42
43
44
45
46
47

569
361
1,488
2,278
14,010
10,866

48
49
50
51
52
53

35

For footnotes, sea p. 23.

Table 2. - Partnership returns of income for 1947, with gross receipts from business or profession, by industrial groups and by gross receipts from business classes,
for all returnst Number of returns, gross receipts fra» business or profession, and ordinary net Income or deficit - Continued
' '
Industrial groups - Continued

54 Service
Personal service
55
Hotels and other lodging places
56
57
laundries, cleaning, and dyeing
Photographic studios
58
Barber and beauty shops
59
Funeral service
60
Other personal service
61
62
Business service
63
Advertising
64
Automobile repair services and garages
65
Amusement
Motion picture theatres
66
67
Professional and social services
Accountants, auditors, and bookeeping service
68
69
Medical and health services
Physicians, surgeons, and oculists
70
71
Dentists
72
Other medical services
Legal services
73
Engineering and architectural services
74
Educational Institutions and agencies
75
76
Other professional and social services
77
Other service and repair
78 Finance, insurance, and real estate
79
Finance
80
Investment trusts and investment companies 10/
81
Security and commodity exchange brokers and
dealers
82
Other finance 9/
Insurance agents, brokers, and services
83
84
Real estate
Finance, insurance, and real estate not allocable
85
86 Construction
87
General contractors
88
Special trade contractors
Construction not allocable
89
90 Agriculture, forestry, and fishery
Farming
91
92
Agricultural services
93
Fishery
94 Nature of business not allocable

(Gross receipts from business classes and money figures in thousands of dollars)
Gross recelpts from business classes - Continued 30 under 40
20 under 25
25 under 30
Ordinary
Gross
Ordinary
Gross
Ordinary
Gross
Number receipts net in­
Number receipts net in­
Number,
Number receipts net in­
come less
of re­ from
come less of re­ from
come less of re­
of re­ from
turns
business deficit
turns
turns business deficit
turns
business deficit
or pro­
or pro­
or pro­
fession
fession
fession
8,127
2,806
750
1,052
170
332
322
180
481
70
1,092
813
130
2,035
293
541
170
91
280
941
220
30
10
900
1,468
74
“
34

181,811
62,887
16,849
23,599
3,914
7,299
7,195
4,031
10,801
1,565
24,502
18,146
2,873
45,423
6,527
12,071
3,850
2,039
6,182
21,035
4,899
687
204
20,052
32,895
1,666
’«
735

60,044
14,649
2,613
5,830
690
2,368
2,057
1,091
3,775
488
5,268
4,010.
583
26,319
3,535
5,944
2,377
1,034
2,533
14,059
2,509
203
71
6,023
14,890
11/75
n/ss8

6,328
1,818
464
661
60
110
372
151
281
60
1,033
757
201
1,937
161
653
322
101
230
880
133
30
80
522
999
217
116

40
455
617
322
3,080
824
2,106
150
7,021
6,721
130
150
764

933
10,293
13,733
7,205
69,121
18,723
47,007
3,391
156,730
150,070
2,899
3,344
17,165

483
5,814
4,954
4,197
17,687
4,105
12,673
909
-55,635
53,931
895
,732
5,024

91
222
397
165
2,690
853
1,667
170
4,429
4,188
91
150
631

40 under 50
Ordinary
Gross
receipts net in­
Number
come less of re­
from
business .. deficit
turns
or pro­
fession

8,594
2,396
624
1,012
140
150
370
100
363
122
1,044
1,128
215
2,990
351
880
550
170
360
1,296
383
30
50
673
1,366
217
•
73

298,932
83,232
21,593
35,524
4,705
5,252
12,684
3,474
12,649
4,346
35,706
39,639
7, 557
104,490
12,071
30,965
12,617
6,039
12,309
45,354
13,331
1,053
1,716
23,216
47,166
7,550

103,181
16,920
3,438
6,670
1,136
1,251
3,529
896
4,008
1,495
7,487
9,043
2,093
60,250
5,939
16,755
9,024
3,064
4,667
31,057
5,465
390
644
5,473
24,891
4,425

5,171

58,480
10,298
2,332
3,152
574
630
2,799
841
2,258
703
6,071
4,611
858
31,181
2,503
9,314
5,208
1,668
2,438
15,921
1,615
320
1,510
4,061
10,847
1,809
r
563

2,556

2,294

44

2,058

1,528

148

2,511
6,152
11,085
4,452
73,963
23,664
45,629
4,670
121,144
114,557
2,467
4,120
17,057

1,125
3,623
3,358
2,057
16,284
5,769
9,660
855
38,405
37,142
103
1,158
5,012

133
427
500
222
4,123
1,136
2,806
181
6,118
5,728
150
230
594

4,652
14,912
16,991
7,713
142,787
39,261
97,440
6,086
211,651
198,010
5,286
7,987
20,681

1,889
8,227
7,694
4,545
30,333
7,214
21,873
1,246
66,159
64,099
743
1,141
4,551

52
261
294
102
3,098
1,032
1,906
160
3,524
3,063
130
110
702

2,228
11,560
13,274
4,724
139,726
46,435
85,974
7,317
147,792
136,220
5,833
4,774
31,631

821
5,740
4,744
1,863
26,495
9,079
16,190
1,226
58,855
36,719
937
861
7,426

61
« 323
486
161
4,172
1,182
2,828
162
4,538
4,170
202
163
854

173,581
50,168
12,655
18,208
1,670
3,073
10,452
4,110
7,730
1,759
28,344
20,121
5,519
52,927
4,377
17,890
8,730
2,829
6,331
24,078
3,571
819
2,192
14,291
27,631
5,942

5,752 256,241
76,578
1,728
454
20,019
29,072
651
60
2,551
3,525
81
17,894
402
3,517
80
11,127
251
4,637
100
792
35,459
27,624
624
180
7,910
1,985 ■ 88,605
281
12,547
665
29,839
17,657
393
40
1,752
232
10,430
706
31,479
8,670
193
3,784
90
2,286
50
372
16,848
34,327
763
106
4,769

82,675
15,122
3,074
5,056
397
863
5,094
638
2,681
1,688
6,848
5,755
1,456
48,293
6,076
17,536
12,098
1,054
4,384
20,176
3,093
588
824
3,976
14,822
2,475

50 under 75
Gross
Ordinary
receipts net in­
from
come less
business deficit
or pro­
fession

7,408 450,315
1,967 120,318
564
33,610
872
52,608
5,382
80
4,895
80
20,119
321
60
3,704
293
18,445
7,031
111
41,063
701
60,255
990
382
23,545
2,995 182,248
424
25,798
1,115
67,956
743 ' 45,246
6,186
101
271
16,524
67,346
1,113
14,161
251
4,426
72
2,561
40
27,986
462
75,518.
1,209
14,614
239
9,101

159,922
21,294
4,736
8,115
798
881
5,844
920
5,650
1,965
6,309
13,289
5,607
106,664
13,174
42,163
31,138
3,767
7,20.8
43,218
5,751
1,449
.909
6,736
31,064
7,481
“
4,314

54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81

3,685
18,900
30,118
9,886
251,394
72,736
168,653
10,005
272,970
251,245
11,840
9,702
52,296 j

1,638
8,636
10,240
4,707
42,031
11,304
28,947
1,780
69,368
66,455
1,260
1,632
11,949

82
83
84
85
86
87
88
89
90
31
92
93
94

For footnotes, see P. 23.

.IN.

Table 2. - Partnership returns of income for 1947, with gross receipts from business or profession, by industrial groups and by gross receipts from business classes,
for all returns: Number of returns, gross receipts from business or profession, and ordinary net income or deficit - Continued
t_________ ____________________ (Gross receipts from business classes and money figures in thousands of dollars)____________________________________
Gross receipts from business classes - Continued
150 under
200 under 250
75 under 100
100 under 150
.
Ordinary
Gross
Gross
Gross
Ordinary
Gross
Ordinary
Ordinary
Number receipts net in­
Number receipts
Number receipts net in­
net in­
Number receipts net in­
Number
Industrial groups
come less of re­ from
come less of re­
of re­ from
come less of re­ from
come less of re­ from
business
turns
turns
turns business deficit
deficit
turns
business deficit
turns
business deficit
òr pro­
or pro­
or pro­
or pro­
fession
fession
fession
fession

500
Ordinary
net in­
come less
deficit

26,175 9,019,631
468 162,102
196
68,783
272
93,319
4,307 1,495,514
727 252,441104
34,999
167
59,745
991 344,045
77
27,334
503 176,874
217
75,820
55,088
168
107
37,978
'101
34,549
219
76,216
136
46,951
59
20,576
. 225
78,559

967,158
26,751
13,729
13,022
175,580
19,013
3,620
8,443
33,358
2,60Í

46,28S
19,832
22,173
15,823
11,943
24,219
17,187
6,873
25,806

360,869
9,179
4,686
4,493
55,163
4,375
1,965
1,868
10,848
1,247
6,665
2,208
4,719
1,827
.
1,976
4,127
1,969
1,109
3,842

23,876
8,487
10 ,l7o
4,680
6,708
12,533
6,251
2,786
12,246

13
14
IS
16
17
18
19

19,499
88
15,134
68
147
32,853
31,739
142
21,967
98
9,772
44
1,114
5
9,171 2,044,222
2,200
491,725
5,601 1,247,015
374
82,930
1,139
253,680
114
25,509
158
34,919
98,724
443
400
89,229
279
62,573
1,330
295,463
96
21,121
308
68,126
252
56,192
24
5,5 30

2,438
2,182
4,686
4,453
2,705
1,748
233
186,027
36,585
123,884
8,314
13,986
2,261
3,887
12,531
11,818
5,114
32,667
1,545
8,868
6,589
592

'
•209
71,110
150
52,341
269
91,093
258
87,574
155
53,474
103
34,100
11
3,519
16,961 5,828,233
5,628 2,000,677
8,668 2,914,359
591 200,450
1,636 541,064
113
36,565
209
68,423
689 235,627
519 176,495
383 127,665
2,788 949,581
22,007
69
321 105,565
390 129,557
23
7,479

8,987
6,040
15,441
14,544
6,659
7,685
1,097
493,725
155,555
285,624
20,760
27,679
3,229
6,527
27,579
24,605
10,347
104,029
1,409
13,350
14,890
959

24
2S
26
27
28
29
30
31
52
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47

2,799
1,294
1,323
16,305
151,728
305,482

332
205
145
2,599
12,631
25,558

466
285
286
4,597
24,627
72,546

48
49
50
51
52
S3

O
o

250 under
GroSs
receipt s
from
business
or pro­
fession

1 All industrial groups
2 Mining and quarrying
Crude petroleum and natural gas production
3
Other mining and quarrying
4
5 Manufacturing
Food and kindred products
6
7
Beverages
8
Tobacco manufactures 10/
Textile-mill products, including cotton
9
Apparel and products made from fabrics
10
11
Leather and products
Rubber products 10/
12
Lumber and timber basic products
13
Furniture and firished lumber products
14
IS
Paper and allied products 10/
Printing and publishing industries
16
17
Chemicals and allied products
18
Petroleum and coal products
Stone, clay, and glass products
19
20
Iron, steel, and products
Nonferrous metals and their products
21
22 J Electrical machinery and equipment
23
Machinery, except transportation equipment and
electrical
Automobiles and equipment^ except electrical 10/
24
25
Transportation equipment, except automobiles 10/
26
Other manufacturing
27
Manufacturing not allocable
28 Public utilities
29
Transportation
so
Trucking, local; and warehousing
51
Other transportation
32
Communication and other public utilities
33 Trade
34
Wholesale
Retail
55
Department, general merchandise, dry goods
36
37
Food stores, including market milk dealers
38
Package liquor stores
Drug stores
39
40
Apparel and accessories
41
Furniture and house furnishings
42
Eating and drinking places
43
Automotive dealers
Filling stations
44
Hardware
45
46
Building materials, fuel, and ice
47
Second-hand stores, except dealers in second-hand
automobiles
48
Book and stationery stores
49
Sporting goods
Florists
50
SI
Jpwelry stores
Other retail trade 8/
52
Trade not allocable
53

10/

Por footnotes, see p, 23«

44,692
360
186
174
4,453
724
75
81
71b
140
“
633
251
273
120

3,869,270
30,856
16,117
14,739
306,788
62,801
6,453
'6,927
62,734
11,856
55,540
21,761

751,117
9,684
4,472
5,212
82,451
8,235
1,664
3,165
15,880
1,197

23,790
281
123
158
3,006
478
96
97
683
55

42,317
15,468
18,922
27,258
19,272
7,589
40,533

7,618
5,185
9,214
2,501
3,128
4,979
2,836
76R
6,575

333
153
164
73
83
124
92
36
218

26,079
216
186
22,700
77,947
644
72,620
599
49,745
412
187
22,875
5,327
45
31,539 3,842,936
4,484 554,091
23,097 2,805,237
1,442 175,914
6,331 767,451
62,267
514
1,309 158,769
1,777 217,181
1,284 155,710
2,999 250,833
3,027 372,141
654
77,024
1,279 155,013
87,818
715
67
8,290

-

-

3,887
3,477
12,979
11,156
7,141
4,015
1,823
383,722
56,447
280,148
17,741
47,879
6,260
20,340
29,578
22, 513
22,884
39,416
. 6,354
20,694
9,680
1,519
1,064
950
1,143
6,384
25,949
47,127

46,803 8,699,294
474
58,414
198
24,516
276
53,898
5,087 621,163
778
95,126
22,486
183
162
19,934
1,070 130,703
79
9,559
68,108
559
39,028
516

211
160
232
61
223

23,265
9,898
18,415
13,926
20,366
5,162
19,272

560,278
5,514
2,467
5,047
59,026
6,951
175
1,548
7,690
2,187
“
7,693
3,320
5,049
1,340
3,276
2,719
3,377
1,049
3,873

291
152
657
615
464
151
42
29,868
3,111
24,114
1,634
6,473
633
1,261
1,795
1,185
2,895
2,076
1,077
1,297
666
82

25,245
13,352
55,675
52,088
39,223
12,865
3,587
2,587,786
268,026
2,088,357
141,816
561,085
55,233
108,688
156,353
103,130
250,094
178,320
91,242
111,890
58,300
7,455

4,139
2,718
7,990
7,363
5,717
1,646
627
278,675
34,635
220,746
15,456
38,045
5,341
14,406
24,240
17,303
23,911
19,428
8,576
14,737
6;632
1,634

40
7£>
81
254
2,595
2,643

3,527
5,976
7,102
21,830
226,516
231,403

491
752
1,101
4,025
24,668
23,294

346
127
156
223
156
63
335

53
55
68
522
2,105
3,958

6,345
6,591
8,194
39,584
256,112
483,608

4,105,386
48,480
21,540
27,140
520,747
82,580
16,508

504,398
7,857
3,871
3,986
65,735
6,354
1,870

16,997
118,633
9,667
«
58,313
26,514
.”
28,111
12,792
14,196
21,590
15,647
6,259
37,933

2,355
15,484
1,093
7,460
5,222

122
108
299
279
164
115
20
15,866
2,914
10,664
720
2,520
231
428
898
665
696
2,078
182
571
390
28

20,948
18,655
51,481
48,009
28,350
19,659
3,472
2,737,972
505,828
1,835,423
123,639
430,998
39,542
73,434
154,447
114,286
118,758
362,085
31,173
98,093
67,183
4,922

3,173
2,903
8,793
7,843
4,163
3,680
950
263,386
44,842
182,651
12,589
25,108
3,806
8,733
20,160
16,347
9,472
40,727
2,350
12,502
7,633
614

23
25
14
133
1,062
2,288

4,012
4,354
2,396
22,928
183,178
396,721

452
431
311
5,217
17,999
35,893

| i

5,631
1,800
2,164
3,655
2,258
845
5,388

13,940 3,108,833
220 ' 49,423
98
21,683
122
27,740
2,028
453,392
311
69,398
20,400
91
'68
15,220
440
98,689
50
11,040

.

207
88
99
70
53
109
78
31
115

13
6
6
73
586
1,370

-

14
7
7
97
812
2,665

4,409
2,326
2,542
33,227
271,377
915,197

1
2
3
4
5
6

7
8
9
10

11
12

20

21
22

23

For footnotes, see p. 23,

Table 2. - Partnership returns of inoorae for 1947, with gross receipts from business or profession, by industrial groups and by gross receipts from business classes,
for all-returnsi Number of returns, gross receipts from business or profession,?and ordinary net income or deficit -■Continued
1

’: r '
Industrial groups - Continued

54 Service
55
Personal service
56
Hotels and other lodging places
57
Laundries, cleaning, and dyeing
58
Photographic studios
59
Barber and beauty shops
60
Funeral service
61
'Other personal service
62
Business service
63
Advertising
64
Automobile repair services and garages
65
Amusement
66
Motion picture theatres
67
Professional and social services
68
Accountants, auditors, and bookkeeping service
69
Medical and health services
70
Physicians, surgeons, and oculists
71
Dentists.
72
Other medical services
Legal services
73
74
Engineering and architectural services
75
Educational institutions and agencies
76
Other professional and social services
77
Other service and repair
78 Finance, insurance, and real estate
79
Finance
80
Investment trusts and investment companies 10/
81
Security and commodity exchange brokers and
dealers
82
Other finance 9/
Insurance agents, brokers, and services
83
84
Real estate
Finance, insurance, and real estate not allocable
85
86 Construction
87
General contractors
88
Special trade contractors
89
Construction not allocable
90 Agriculture forestry, and fishery
91
Farming
92
Agricultural services
93
Fishery
94 Nature of business not allocable

T
1
1
1 Number
of re1 turns
!

(Gross receipts from business classes and money figures in thousands of.dollars)
Gross receipts from business classes - Continued
75 under 100
100 under 150
150 under,200
1
Gross
jOrdinary
Gross
1Gross
I Ordinary
!Ordinary
receipts
net in[Number receipts j net in—
Number 1receipts 1 ne t iniNumber
from
come less of
from
icome less of re­ ifrom
1 come less jof rebusiness
deficit
business jdéficit
turns
business 1 deficit I turns
or pro­
or pro­
1■
or pro­
fession
fession
fession

\ ré­
tama

3,505
943
258
383
80
30
171
21
193
52
280
482
229
1,466
143
529
377
30
122
570
153
50
21
221
456
108
52

308,531
81,479
22,111
33,082
6,630
2,615
15,174
1,867
16,879
4,370
23,695
41,816
20,113
126,607 ,
12,672
45,439
32,183
2,545
10,711
48,915
13,362
4,459
1,760
18,055
39,036
9,242
•>
4,295

25
115
200
33
2,606
7551
1,780
71
2,312
2,087
144
70
395

2,203
9,920
17,052
2,822
224,749
65,325
153,330
6,094
201,648
182,086
12,566
6,102
34,201

109,464
15,850
2,837
6,112
1,419
450
4,769
263
2,773
765
3,472
9,579
5,423
73,202
5,719
29,589
22,895
1,049
5,445
31,246
5,204
464
1,180
4,588
15,616
2,994
'
2,068

3,540
904
244
440
56
16
129
19
213
111
237
510
221
1,481
168
519
292
15
212
539
203
38
14
195
595
144
- 105

426,899
109,677
29,559
53,553
7,001
1,947
15,374
2,243
25,916
13,479
28,082
61,155
26,413
178,745
20,558
61,950
54,900
1,779
25,271
65,'178
24,785
4,577
. 1,697
23,324
71,148
. 17,649
12,960

140,921
17,745
3,633
7,726
1,428
294
4,313
551
6, 298
3,047
3,761
12,073
6,596
96,804
9,888
35,815
23,934
i 674
11,207
40,509-1
9,055
918
839
4,240
22,175
6,153
4,357

1,521
456
132
212
25
15
70
4
74
36
70
220
77
644
97
211
81
6
124
220
93
15
8
57
257
81
SI

260,341
76,762
22,621
36,740
4,232
568
12,071
530
12,574
6,081
12,083
38,006
13,504
111,005
16,580
36, 327
13,930
. 1,076
21,321
38,108
16,004
2,626
1,360
9,911
44,138
13,814
.8,877

81,338
11,972
3,776
4,443
617
108
2,960
68
2,458
894
1,567
7,284
3,492
56,497
7,303
19,235
9,117
353
9,763
23,599
5,196
642
524
1,560
11,826
4,163
2,255

19
7
59
34
47
156
63
292
35
88
26
3
59
115
40
10
4
39
171
74
64

220
4,512
5,860
2,250
35,012
9,994
24,462
556
42,389
40,004
1,995
378
6,592

36
196
223
32
2,732
1,082
1,541
109
1,896
1,644
150
84
296

4,295
23,548
25,988
3,963
334,301
132,113
188,580
13,608
230,753
199,980
18,741
9,956
35,753

1,652
8,624
5,919
1,479
47,229
16,235
28,982
2,012
44,617
40,869
2,047
1,405
7,539

28
62
107
7
1,426
630
755
41
970
778
111
69
164

4,557
10,823
18,287
1,214
245,995
108,909
130,026
7,060
167,978
134, 329
19,581
12,067
28,254

1,805
3,837
3,262
564
31,521
12,187
18,430
904
29,202
25,193
1,696
1,847
4,740

10
?8
59
10
851
374
426
31
521
404
75
34
85

766
173
51
85
11
-

'Gross
rreceipts
1 from
ibusiness
or pro-^
fession

' Ordinary
! net inNumber
1 come less of re­
, deficit
turns
*- • .

170,634
38,391
11,558
18,647
2,487
-

4,187
1,512
13,055
7,4S4
10,276
34,896
13,985
65,198
7,785
19,612
5,613
721
13,27s1
25,803
8,825
2,247
926
8,818
37,866
16,401
14,149
2,252
6,189
13,071
2,205
,185,542
83,391
95,222
6,929
115,906
89,888
16,632
7,597
18,995

51,917
6,035
1,731
2,630
349

2b0 under 500
Gross
Ordinary
receipts net in­
from
come less
business deficit
or pro­
fession

1,125
200
2,489
1,215
1,224
6,670
3,902
34,278
3,708
10,220
5,485
355
6,400
16,251
2,796
624
679
1,221
8,671
2,878
2,460

1,276
341
152
146
14
6
15
8
'130
85
41
257
74
446
40
125
18
3
104
192
76
10
3
61
292
105
83

435,203
113,270
50,987
48,154
4,576
2,041
4,748
2,764
44,672
29,452
14,484
88,535
25,555
151,174
13,590
42,018
6,005
1,207
34,806
65,179
26,317
3,223
847
21,068
102,472
38*750
•
:
31,022

112,505
15,828
7,231
6,367
324
144
1,350
412
7,187
4,404
1,519
15,053
6,010
69,277
5,353
16,788
3,055
156
13,597
39,439
6,813
679
205
3,661
23,735
9,358
6,878

54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81

418
2,-098
3,004
691
23,115
9,140
13,220
755
17,734
15,048
1,475
1,168
4,377

20
92
88
7
1,645
897
686
62
825
595
199
26
132

6,891
30,962
30,4(33
2,357
568,998
314,149
233,789
21,060
291,446
208,417
72,764
8,418
46,570

1,996
6,331
5,210
836
65,045
32,558
30,110
2,377
37,562
51,273
3,887
2,109
6,814

82
83
84
85
86
87
88
89
90
91
92
95
94

-

-

For footnotes, see p, 23.

c n

Table 2,

Partnership returns of income for 1947, with gross receipts from business or profession, by industrial groups and by gross receipts from business classes,
for all returns: Number of returns, gross receipts from business or profession, and ordinary net income or deficit - Continued
Returns pot report- 1

Gross receipts from business classes - Continued
590 under 1,000
|Gross
jreceipts
ft*om
ibusiness
or profession

1 All industrial groups
2 Mining and quarrying
3
Crude petroleum and natural gas production
4
Other mining and quarrying
5 Manufacturing
6
Food and kindred products
Beverages
a
Tobacco manufactures 10/
9
Textile-mill products, including cotton
io
Apparel and products made from fabrics
il
Leather and products
12
Rubber products 10/
13
Limber and timber basic products
14
Furniture and finished lumber products
15
Paper and allied products 13/
16
Printing and publishing industries
Chemicals and allied products
17
18
Petroleum and coal products 10/
19
Stone, clay, and glass products
20
Iron, steel, and products
21
Nonferrous metals and their products
22
Electrical machinery and equipment
23
Machinery, except transportation equipment and
electrical
24
Automobiles and equipment, except electrical 10/
25
Transportation equipment, except automobiles 13/
26
Other manufacturing
27
Manufacturing not allocable
28 Public utilities
29
Transportation
30
Trucking, local; and warehousing
31
Other transportation
32
Communication and other public utilities
33 Trade
54
Wholesale
35
Retail
36
Department, general merchandise, dry goods
37
Food stores, including market milk dealers
38
Package liquor stores
39
Drug stores
40
Apparel and accessories
41
Furniture and house furnishings
42
Eating and drinking places
45
Automotive dealers
44
Filling stations
45
ftardware
46
Building materials, fuel, and ice
47
Second-hand stores, except dealers in second-hand
automobiles
48
Book and stationery stores
49
Sporting goods
50
Florists
51
Jewelry stores
52
Other retail trade 8/
53
Trade not allocable

i

10,519
182
84
98
1,981
366
43

7,207,506
i24,805
57,765
67,038
1,365,122
250,924
28,045

656,112
17,893
7,875
10,018
146,269
16,617
2,174

5,331
71
47
24
967
271
18

9,424,848
124,021
88,841
35,180
1,-678,027
508,905
32,416

102
515
44

69,034
357j810
29,318

8,573
33,358
2,869

64
235
26

111,451
413,217
42,873

232
82

165,016
56,977

22,260
7,222

77
20

56
67

36,355
46,572

6,579
5,647

22
91
48
24
103

14,797
61,380
33,325
16,749
70,037

64
49
106
102
56
46
4
6,808
5,413
2,283
185
407
24
31
170
127
73
874
17
48
103
10
2
1
Ì
29
181
1,112

from business or
profession 12/
Ordinary
Number
of returns
deficit

5 000 and over

1,000 under 5,000
Gross
Ordinary
Number
receipts
net inof refrom
come less
turns
business
deficit
or profession

Gross
receipts
from
business
or profession

Number
of returns

Ordinary
net inccme less
deficit

268
7
6
1
19
9
1

2,417,477
44,478
38,521
5,957
158, 512
74,232
5,138

102, 238
20,282
20,237
45
10,374
4,700
551

34,685
4,092

1
2
3

5,757
23,449
31,862

354
1,462
1,666

119,013
30,583

17,007
3,424

-

-

18
36

30,132
60,414

2,781
9,268

Ï
1

7,041
5,726

1,134
9,673
5,119
2,288
10,373

8
42
22
8
37

11,610
64,808
35,687
13,840
58,666

2,174
8,146
2,557
1,948
8,417

1

5,307

-

_

-

«

43,649
31,588
72,109
69,361
37,192
32j169
2,748
4,659,103
2,373,581
1,531,512
125,927
273,176
15,981
20,169
111,964
85,595
48,685
592,104
10,917
50,647
68,222
6,567

5,273
3,652
6,757
6,291
2,956
3,335
466
331,764
136,367
144,692
12,513
12,020
1,382
1,582
11,583
11,827
3,970
65*967
710
3,272
7,451
822

18
17
55
54
19
35
1
3,632
2,424
748
70
140
3
5
50
18
18
320
9
15
33
1

25,314
26,637
88,888
87,836
26,407
61,429
1,052
6,488,439
4,526,902
1,220,459
113,486
251,458
4,185
12,128
85,078
25,177
31,210
508,060
16,676
19,339
46,455
1,064

2,718
2,598
11,351
11,145
2,138
9,007
206
328,760
183,906
102,515
11,263
8,863
295
787
6,219
3,130
3,156
54,886
879
1,812
4,695
55

1,284
627
969
19,713
118,965
754,010

64
105
184
2,671
8,571
50,705

2

6,075

419

•
-

7
59
460

637,995
13,527
9,888
3,639
148,948
27,337
1,146
O 1

Number
of returns

Ordinary
net income less
deficit

O

Industrial groups

•

10,101
89,#67
741,078

881
5,185
42,339

0
«

“
-

-

-

ï
. ï

-

5,197
5,197

•a

536
536

-

1

5,197

536

215
188
14
1
5

1,972,177
1,764,892
90,101
6,020
30,766

45,168
35,867
6,284
516
818

1

5,204

526

*

5

-

_

-

-

2
“

..
«

-

36,351

-

11,760
-

0

2,365
1,559
■

—

W
w

10/'

12/"

142
12/

11/140
12/

12/"
12/

m
W
12/"

51
60
io/1
12/
12/

11/73
25
12/

90
131
264
213
171
12/
51
1,277
459
716
12/
60

11/122
11/ 28
4
184
306

12/

W

11/180
4,395
2,335
1,785
12/
11/165

12/
80
10/
243
101
12/
12/
12/

12/
577
12/
490
662
12/
10/

12/

12/

w

"

_
•

-

1,413
228

285,598
11/5,787
11/5,837
50
11/353
125

-

W
W
0
-

-

-

72,731
962
741
221
80C
84

a.

_

i

13

•

117,184

3,017

81
102

71
275 J

1,112 I

53 I Trade not allocable

754,010 I

50,705 I

%oo I

Table 2. - Partnership returns of income for 1947, with gross receipts from business or profession, by industrial groups and by gross receipts from business classes,
for all returnsi Number of returns, gross receipts from business or profession, and ordinary net income or deficit - Continued
(Gross receipts from business classes and money figures in thousands of dollars)
Gross receipts from business classes - Continued
''
Industrial groups - Continued

54 Service
Personal service
55
Hotels and other lodging places
56
laundries, cleaning, and dyeing
57
58
Photographic studios
59
Barber and beauty shops
Funeral service
60
Other
personal service
61
62
Business service
Advertising
63
Automobile repair services and garages
64
Amusement
65
66
Motion picture theatres
67
Professional and social services
Accountants, auditors, and bookkeeping service
68
Medical and health services
69
Physicians, surgeons, and oculists
70
71
Dentists
Other medical services
72
Legal services
73
Engineering and architectural services
74
Educational institutions and agencies
75
Other professional and social services
76
77
Other service and repair
78 Finance, insurance, and real estate
79
Finance
Investment trusts and investment companies 10/
80
81
Security and conmodity exchange brokers and
dealers
Other finance 9/
82
Insurance agents, brokers, and services
83
84
Real estate
Finance, insurance, and real estate not allocable
85
86 Construction
87
General contractors
Special trade contractors
88
89
Construction not allocable
90 Agriculture, forestry, and fishery
Farming
91
92
Agricultural services
93
Fishery
94 Nature of business not allocablé

500 under 1,000
Gross
receipts
Number
from
of re­
turns
business .
or pro­
fession

5,000 and over
Gross
receipts
Number
of re­
from
turns
business
or pro­
fession

1,000 under 5,000
| Ordinary
Gross
> net in­
receipts
Number
come less
from
of re­
business
deficit
turns
or pro­
fession

Ordinary
net in­
come less
deficit

172
37
22
9
2
1
1
2
22
19
1
48
4
60
9
4
4
31
16
.4
59
46

293,759
56,978
38>492
11,458
2,738
. 1,013
1,148
2,129
46,965
59,631
1,029
72,956
4,885
110,501
18,270
8,035
■«V
8,035
53,082
30,914
- .. 5,530
1Ì5,010
93,574

64,155
5,681
3,615
1,541
74
126
282
45
4,273
5,434
82
9,373
1,040
44,182
6,569
1,995

410
82
46
25
3
2
5
1
43
29
9
107
22
163
18
26
6
~
20
86
31
1
1
6
82
48

282,454
54,879
50,960
16,708
2,311
1,151
3,188
561
31,358
20,756
5,853
73,713
13,625
113,074
12,520
18,526
3,849
«
14,677
59,886
20,892
528
722
3,577
57,287
34,812

74,064
5,893
3,076
1,921
160
96
587
53
4,036
2,210
595
9,402
3,087
53,380
4,858
9,028
2,248
'6,780
34,884
4,432
112
66
758
12,940
7,661

45

32,415

6,316

45

92,554

16,329

2
28
6
'*»
630
397
194
39
267
172
90
2
53

1,630
18,546
3,929

624
4,574
705
/42,836
24,770
15,650
2,416
17,975
14,506
5,027
277
5,614

1
9
4
268
195
57
16
93
74
17

1,220
16,405
5,031

352
3,119
1,062
«»
34,921
23,746
9,207
1,968
11,494
9,933
982
5,977.

M

U & m

430,342
274,384
128,827
27,131
182,377
118,846
60,436
1,480
35,909

-

14

-

455,079
543,619
85,151
28,309
156,712
125,926
26,804
•
24,913

■

—
1,995
30,211
5,407
564
20,862
16,681
_

7
2
1

52,926
15,717
9,730

•
1
'«
1
-

5,987
5,072
7,168
24,'969
24,969
-

-

1
3
3
-

■—
;-

-,
- —
3
2
«;
2;
W

1
>•*
12
10
1
1
3
3
1

,

,

16,430
11,322
11,322
5,108
, •
133,732
113,578
11,876
8,478
22,837
22,857
11,188

Ordinary
net in­
come less
deficit

10,223
1,116
562
'554
• • 329
67
8,711
8,711
—
•.
—
2,321
1,041

r
-

Returns not report­
ing gross receipts
from business or
profession 12/
Ordinary
net income
Number
less .
of re­
deficit
turns.

‘
. .

2,410
1,115
1,034
51
•~
10/

54
55
56
57
58
10/
59
60
12/
-, 61
1,129 62
63
166 64
1,033 65
12/ 66
1,161 67
68
12/
69
12/
70
12/
71
12/
10/ ; 72
617 73
11/698 74
-75
IQ/
76
137Ï31 77
274,003 76
57,392 79
80
.e 24,540 81

12/
12/ 22/
12/
W.
w
344

111
517

442
12/
10/

12/:

181
113
10/
10/
81
61,832
6,236
-

1,041

1,172

1,280

1,.615
114
54,079
1,403
534
422
101
12/
2,540
2,329
111
90
2,117

9,610
4,332
4,874
404
603
603
• ■'-•
«»
3,121

• 9,715
¿6,407
6,436
Ü/22

14,163
499
210,251
5,861
2,024
2,383
11/358

82
.83
84
85
86
87
88
89
'90
91
92
93
94

Hn

/
lì/1,577
11/1,442
218
11/382
- 3,174

For footnotes, see pa 25.

CD

-

22

-

Table 3» - Partnership returns of income for 1947, b y States and Territories, for returns with ordinary net income and
returns with no ordinary net incomet Number of returns, total receipts, and ordinary net income or deficit

Total ‘
number
of re­
turns 14/

States and
territories 13/

1

2
3
4
5

6
7

8
9

10

11
12
13
14
15
16
17
18
19

20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51

Alabama
Arisona
Arkansas
California
Colorado
Connecticut
Delaware
District of Columbia
Florida
Georgia
Hawaii
Idaho
Illinois
Indiana
Iowa
Kansas
Kentuoky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
N e w Hampshire
New Jersey
New Mexico
New York
North Carolina
North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island
South Carolina
South Dakota
Tennessee
Texas
Utah
Vermont
Virginia
Washington 13/
Wes t Virginia
Wisconsin
Wyoming
Total

For footnotes, see p*

23

(Money figures .in thousands" of dollars)
Returns wi t h no ordinary net income 6/
Returns with ordinary net income 6/
Ordinary
Ordinary
Total
Total
net
Number
net
NUmber
receipts
receipts
deficit
income

10,031
5,230
8,037
95,227
11,436
11,114
1,320
3,138
15,762
11,498
2,692
5,229
62,466
19,847
29,924
14,588
13,071
10,439
3,993
10,949
17,618
35,892
23,683
7,390
25,046
6,215
11,844
2,033
2,389
26,395
3,746
102,032
11,648
4,468
39,590
12,668
15,956
51,110
3,246
5,132
6,061
13,202
46,360
3,984
2,006
11,443
19,595
8,228
21,966
2,894

9,134
4,242
6,940
79,233
10,154
9,752
1,166
2 ,818
12,952
10,180
2,273
4,693
55,041
18,118
28,306
13,028
12,013
9,122
3,617
9,624
15,159
31,884
22,225
6,421
22,863
5,572
11,092
1,501
2,058
23,543
3,317
89,210
10,295
4,248
35,478
11,347
14,304
45,646
2,790
4,499
5,853
11,709
40,094
3,445
1,758
10,214
17,192
7,106
20,178
2,569

830,230
290,583
644,586
6,440,921
675,881
525,622
110,861
241,083
845,014
851,349
148,421
290,199
4,168,952
1,240,367
1,491,715
893,600
806,246
831,174
165,920
806,032
1,030,117
2,243,682
1,132,249
602,375
1,416,738
309,104
735,135
105,901
106,322
1,479,155
237,837
7,617,678
890,597
287,451
2,272,650
883,499
1,122,416
3,945,300
183,007
389,263
254,580
1,148,521
3,434,741
262,578
97,672
681,844
1,230,913
354,635
1,013,074
136,364

94,410
39,304
75,068
950,913
98,361
76,016
14,986
40,305
112,529
99,586
24,119
40,189
594,801
158,318
241,112
119,332
111,446
125,011
23,362
108,950
144,319
318,962
169,984
68,910
187,553
46,327
99,953
16,546
13,998
198,015
32,566
1,029,163
102,166
44,163
338,430
116,122
157,990
497,734
23,579
40,490
49,711
109,284
491,042
35,068
10,114
91,716
197,677
54,986
150,361
23,315

897
968
1,097
15,781
1,281
1,352
154
310
2,800
1,308
419
516
7,344
1,729
1,608
1,560
1,058
1,307
376
1,315
2,449
3,918
1,438
969
2,163
632
741
532
331
2,852
409
12,582
1,343
220
4,092
1,321
1,632
5,444
456
633
208
1,483
6,225
539
248
1,229
2,382
1,122
1,788
325

34,969
26,145
37,516
423,162
40,814
24,958
4,753
11,865
77,651
90,708
13,080
11,029
156,765
42,216
38,813
29,158
23,518
47,235
9,585
41,840
69,862
76,092
34,702
35,394
54,617
11,408
21,824
14,796
5,037
68,472
8,641
355,031
48,079
5,467
83,419
42,377
40,211
149,689
8,353
22,386
7,388
50,167
206,690
17,329
4,499
33,106
64,252
20,070
29,387
8,264

2,903
4,111
3,103
60,983
3,207
3,179
267
1,620
11,093
5,010
1,494
1,521
21,842
4,048
2,709
6,410
2,199
6,718
758
5,064
6,622
8,131
3,367
5,109
4,745
1,633
1,568
2,100
663
5, ¡560
1,086
46,427
3,711
504
8,586
4,118
4,188
16,867
860
2,200
272
3,423
33,073
1,790
219
2,714
5,472
2,965
2,760
1,089

889,831

785,976

57,904,154

8,008,362

102,886

2,782,789

329,861

1
'2
3
4
5
6
7
8
9
10

11
12
13
14
15
16
17
18
19
20
21

22
23
24
25
26
27
28
29
30
31

32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
60,
51

17

- 83 Footnotes

l/ Industrial groups are based
on the standard industrial classi­
fication. The industrial group is
determined on the basis of informa­
tion submitted on the report Form
IO65 and on attached schedules, and
is the business activity from which
all or a greater part of total re­
ceipts was derivedo
2/ Entries for rents and royal­
ties "represent gross amounts received,
the various costs being shown under
’’Deductions «”
3/ ”Other income” includes fees
and commissions not includible else­
where, refunds, recoveries, discounts,
and Government payments in the case
of agriculture.
I4/ Depletion is allowable as a
deduction in determining the taxable
net income from mines, oil and gas
wells, timber, and similar resources.
Owners of royalty interests, as well
as operating owners, lessors, and
lessees, are each entitled to their
respective shares of the allowance.
5/ Under ”0ther deductions” are
costs of such items as transporta­
tion, advertising, public utilities,
engineering and legal services, not
included elsewhere.
6/ Ordinary net income is the
difference between total receipts and
total deductions. If deductions ex­
ceed total receipts the result is
ordinary net deficit. The following
items cannot be deducted: contribu­
tions, losses from sale of capital
assets, net operating losses, salaries
or wages or other remuneration paid
to partners.
2 / Compiled net profit is ordi­
nary net income plus capital gains less
capital losses plus contributions.

The difference between compiled net
profit less net deficit and compiled
net profit is compiled net deficit of
those with no ordinary net income*
8/ ”Other retail trade” in­
cludes news dealers and newsstands.
9/ ”Other finance” includes
banks"7 trust companies,* and inve stme nt banke rs.
10/ All returns with gross re­
ceipts of $100,000 or more were tabu­
lated, but those with gross receipts
below $100,000 were sampled 10 per­
cent on a bundle basis. In a number
of subclasses this resulted in
samples of 5 or less returns, which
means 50 or less on an estimated
population basis. Since these fre­
quencies are subject to sampling
errors exceeding 100 percent, they
are not shown separately.
The sampled area accounts for
85 percent of the total number of
partnerships, but generally less
than half of the aggregates shown
for other items. Hence, estimates
of money aggregates are subject to
much less sampling error than are
the estimates of the numbers of
partnerships.
ll/ Ordinary net deficit.
12/ ¡Returns not reporting gross
receipts from business or profession
include those partnerships whose
major source of receipts was rents,
interest, dividends, etc.
13/ Alaska is included in the
State of Washington since it is a
part of that collection district.
ill/ Includes 9^9 inactive part­
nerships that reported neither re­
ceipts nor deductions.

IX
«*

in the $erloâ M
<a¿f

«►

that the treasury* a present budgetary surfins

** *uA-*

vili ä*sMftf guieldy. libile the exact course of defense spending

jfj I

cannot non he blue-printed, it is all too clear already that
vithin the coating fiscal year ve Shan need at least the $10 billion

C l

minima» program reecewen&ed by the President.

Mo

one can know tisi lies

ahead, and It venid be most is^mdeni to delay the legislation
required now for our financial preparedness.

ex

3to prudeat eotarae

nm la ttor proep* eoactasnt e H i t n rate

iacreases atready r e e o o m d e d %

ti» Preaideat.

m # incnNuea la

tl» corporati©© «$$ iMlviiaal iacea© tasca «ad thè erela© tasta
^ i c h I diaeusaed

with yoa ©a Befcruary Jth represeat thè toste chaages

in tto tax structurc ttot «re a©« deslrable*
la a^r previo«» statement I alto discusse! a zam&er of «traeturai
lapreveaesito in thè tax systo* liMcìi «re desirable la thè iatereat of

eqaity ant pfefefe «©al! previde addltlonal revesme,
®*y

fto Cornaitte©

r ^ d y te aet ©a some ©f thèse, «né I urge pota to l a e k d e in

ymir revemie hit! a» maay ©f ttose revlaioas as c i n t o

hanéleè Éittoafc

«sdaly deiaying thè logislation«

Ito Treasrary t ó Joint Ceemdttoe staffa toro tota «©rktag
eoatiauously ©n ttose «attera «ad viti to prepari te present thè
resulta of ttoir studia» te ito Coamitto©.
to ti» tosta ©f «a evaluatie» ef all thè infaraation

m w

at

tosd, it la ay vie« that torri&g a major fesga la thè defesse
program action on Ito s#e©s*d pari ©f tto revesme program ean aev
to pestpotuHt mi t u a a t

Jmmscy «ton ve «ili toro « firmer tosta

far detormiising tofane# »©sto«
1 ka©«, gentleman, ttot y*m «re la eooplete
destre ttot our ftaassetal stabili ty to proteste!.
«etto» last year la proof ©f thls#
state! hriefly;

t € m sy
Tour ttaely

Hy considera! Ju&^asat con to

\Befense eapesditure® «ili increate a© rapidly

s

OS
•

7

*

«111 be speading at a faater rate than it «111 be eolleeting unlese
Ite revernata are inereased % addittonal tax leglslationf «sa {SÌ
that defenee coste la fiscal 1952 «111 be far greater than thoee
for 1951 and tfeat thè? « H I noi reaefe thatr peàk befane
in fiscal pear 1953 «

m m tlae

^fceee growing expendi turca «ili generate

lnflationary pressure® « M e h a© adequate tax palici est help to

addltlenal taxes under thè defenae program cast be datersdned ©nly
ae tlae goee ©ìu

Oar financial preparedaese, heaever, ansi go

foreard and thè tax legislation reqsired no« shoold net be poetpoaed.
1M« Oeaaittee le «eli aliare of thè esgtaasls 1 bave placet on
thè flaaaaial eteengtìi of thè

Gomsmmt

aaringajr y£?le& ef Service

In thè Teeasury. 1 eoBfelsatyB ^af e ^ agetancei^É^li enafelad thè
(kr/ertee&iit^ ei.
waw»^
f
I

thè wr.

W^lg^j^^liiweqa etnee thè end of

Miih le at etabe in eontlmxlng tfcis polle? throegh thè

abbilisatlon period.

Tiaely and a&e<fuate tascata lice at thè boari

©f thè sconcale stàbilization program.
A
.¿.
Our present situati©» calle far foreeight end detervlnatlon of

I

thè bina deaoastrated b
g
rg#«r Cow&ttee and thè Congrega last pear
In

I

adoptlng t«o m m m m aeasures In thè aanthe iaaee&istely foìlowtag

thè Kòreaa aggreaalon*

is
» sfU**
Slice Kgre&# t e Inereaee

im M t m m

conditure© fca^ feeam

*tee*y for the purpose if «M ing manpeue? to thn&rsaed forcee.
8te»&it«ree « m increasingly shift to jN^wmfe» t e ta^y etuip«exit aid t e n t a i t e additional output. Over three-fourths of
t e defence certes already placed m m t e costlyi n a t t e eqplpnmt
m &

t e facilities to expand its production. âs bas been mât

evident te t e Armed Ferme Committees of t e Congress, t e
steadily mounting financial gradii of defense erlers «ili aot reach
its peek la Government expen*ditures t e aere then a par*
that peek le reached, Ä t e t e

®m$mÊ$Mmmrn

Before

are expected te sore

than double*
t e available i a t e m a t t e la sot sufficient te p M t

a tee*

m a t of |oal «bat the déficit n o t e present toaos rill be month by
month or precisely t e n the m a s t e m level of expenditures will be
reached.

In M s budget m s e e g e the President emphasised that our

e m m d i t u r e a for so t t e s i security sa#st be si&Ject to stetantial
ad¿u»tments aa the program advanced,
continued.

fists caution assist be

It is passible, bat by no aearn certain, that actual

f i a m d year 1952 m p e s d i t e e a a m be 3 m s than estimated in January.
t e Government agencies concerned o s a t e na of t e s e compelling
tetas

(l) that the r e t e t t e in 195 jâefenae

bete

t e u a r y budget projections is the reault of c h a n g e d * ^ timing of
payments and sot t e to any r e t e t t e in the program to t e c h our
revenue planning muet be geared* (2) that tern noe on t e Government /

fl» aitata i© É É i reeemt . s u ®
mrm

ri

to issâse; fiseil |ür 1^2 revenues

vili earry
$m

m %

p i clear.

tbe total

sorsewtmt retard thè reta of i m r e a æ la

eost if

prograi le soi

Si

b«neiâ

isl a»

t rasait

o
fM
g
ta
rp
rise
s®
a
yactually ta
Let m aay as a#ftttaUy as 1 Imem imm tbet tbe fiscal
pretta» futiig lia aor ara as p » a aa isqr visteli tara eonfronted
fchis

a a m t e y in

receat pari «ai ean ta retata! siily iÿ

fareeM aaâ t a l y TtfeiM Ifiglslatlica«
Initia tta carrait fiatai. aituatton is encouraging, tfeis «fcould

What

a
astatili r
e
e
o
g
n
ia
©
isttata
ata
raa
e
a
t«
Tüm fim
n
eial

problème #f s M t a f t S i wsr without tte essottaml sttorolstim s£ a
sartine ewergsncy ta i®pel aa to tata thè neeessary « t a *

fte

leak of thl» alitata m i t ta coapensated for tjr »«ter calculation

tan met fata» solfare« tfe stali te gravely stalai if

m

rUw mm

problema «ai ¿a&$e our aeads la tl» ligkt of day-to-day variations
i»J reports t a « trouble apota tiaroughout
\

tbm

«orli»

Som

of tbe eifUSaa redactions are fe programs M

as those

aâisdUalstered byjéhs Veterana Âd&infetration ani. tbs OoBaodltty
Credit Corporation, i«ilÄ arc affected by changes ta economie cosâfe
tiens* fh» degree to which veterana draw
for

m

readjustment benefit«,

depends Im part on aagdagMCt opportunities* Funds

rs^tlrel by tins CCC fluctuate with farm prices and tern Im

i

practices tmier the price support pregna*
ifltft respect ta tfea timing of defense

wgmMm#

X am advised

by those charged tritìi procurement activities that it la mat

octjcCc§ c 6i t L

possible. to prediet how promptly the obligation of funds far
A
defense contracts will he followed by actual expenditures.
Mornm?! contractors are revealing «s ability to operate far
relatively longer periods with their arm financial resources and
with lea* recourse to ’S » Qovernment fer payments om account
than m i the case during Wert# Sbr XX*
p r t i w Ä

li other merda, military

mad the preparation for It precede b y massy amatila

actual f f e « i Ä demanda on the ®feaw»y.
ffce increased revenues and

lavar rate of emndi^rea

combine to sffiïjg about am estimated surplus of about foj&sSfcbillion
for thialflaeàl year compered with the anticipated deficit of
$2.7 bllllmi presented In tbs January budget* I cannot emphasise
too straggly, however, that the n i m m t tilgst surplus la imagporary
and that me meat guard against the unwarranted conclusion that It
will be maintained la tbe fatare*

IIS

*

t e indicated Inerease ta
rœmt&m

teeh

tea «agate*

p œ n â m 13m

si&ai flcaat

tmm U

3

»

m m m m .

U

é m

primarily to

dividual and corporate %ncosae

largest p r t ef total

part of t e increase

im

wmmÉÿM*

m g a m
t m m ?

Hovever, a

attributable t@ gr«s*«r t!«

expected collections from «»sise t » % especially liquor ta»«»
a M »as^sttsws* excises, caused by «« unusual expansion «T
êmtâmm*

inventories as well as Increased consumer laying partly

la anticipation of prospective tes Increases* la other cords, port
of the unanticipated revenue is the reçoit of scare
rlsiag prices

and

are reflected act only ta ü # i f SlTteg costs

hut la higher defense coots as well*
ïfc addition to $h* beual problem of appraising t e effects
of re<mt tasse législation, revenus estimating is complicated toy
t e basic changes now talcing place la t e eeoacay. t e s t e
economy functions under strong pressure, te» resources are
toeing reallocated between civilian and military seeds^ and ten
t e results of stabilisation measures are not clear, important
changes in tan collections may occur in relatively short periods.
It is currently estimated that acted expenditures during
tee fiscal year prtebly|vm Ink

billion lasa ten

tews projected in t e budget* the reduction in expenditures this
fiscal year |g pertly accounted for by savings in t e civilian
prog?«» and partly by t e fact that financial settlements on
military deliveries hove accelerated less than anticipated*

À&
ì m

X

atated provieni®!?,

a difficult taak.

It la

t

reeogaisse tei posar Q m m à f o m

tìkmj®

aifficult to «atietpata ttur

Oaroraumt*» flamciai » H » *s& to tato» lato account a U of t e
coaald«patio»8 of

tutelami

economie palle?.

Sa t e preswmt

altoatioa It la dotiti? difflctilt, toeeaase w «ara eoafroatad vith
far-reaetoing m u m m i a eftluateata.
t e Cosasitt®e a U l recali tet tfel# ©utlook proapteL t e
Praaldent to roeomol a fioritola t e pr«gr«»u B* urte t e
Coagraa# to prasoat aa rapidi? m
wiMmm

poaslble alt*i t e tele

porte»» of t e rateo» prograsi and to

«ette

vitto reapect to t e rasiate imtu t e t t e ee^moale t e te$»t*?y
ètrateoteo eouM I mi tearrat t e a arietr of recate profelea»
jfcifli rT> rn atri *T stojaife

tio tea earafull? rrrlate t e arena# of t e pa*t tao nmtha
to dotarate tetr toaartng to t e

mqpàjrmmtte»

of t e polle? of
/

peplo« t e arpoaditure* aa a» «e» Itera ara * osate of derelop»

mite*, eepaeiaU? atti* raapaet to te aattetad toolgat poetatoli
t e t e eurra&t fiate p»ar# ^

ara taportaat to t e Cotettaa*«

dallfetratloaa.
Intonsa! roventa» eeHeettea# associate *i£fe t e flllag of
laooeia t e rateo# oa March 1$ telate tet t e

G&wrwmmt**

\

vmmem*

t e tM» fiate p » vili tot atout

tonile* tolte?
t0

tea aatlelpatod la t e

Imxmty

budget*

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27
TREASURY DEPARTMENT
WASHINGTON

Statement of Secretary Snyder before
the Committee on Ways and Means
of the House of Representatives
April 2, 1951

MR. CHAIRMAN AND MEMBERS OF THE COMMITTEE:
I appreciate your giving me an opportunity at the conclusion
of your public hearings to review the President’s 1951 tax program
in the light of recent developments.
The President’s financial preparedness program, which I
discussed with your Committee on February 5th, calls for a
balanced budget policy. The objective of the President’s program
is to finance the Government’s regular and emergency activities
from current revenues, without adding to the public debt and with
full support to economic stabilization. This requires that the
Congress strengthen the revenue-producing capacity of the Federal
tax system to keep pace with rising defense expenditures.
During the past two months your Committee has taken a large
volume of testimony which has brought out varying approaches to
the problem of financing the defense program. In this testimony
one fact stands out: the popular endorsement of the President’s
pay-as-we-go policy. The people of the country generally are
convinced that this is the only sound course consistent with
fortifying the Nation’s defenses, increasing our productive
capacity and maintaining our economic health.
As I stated previously, I recognize that your Committee has
a difficult task. It is always difficult to anticipate the
Government’s financial needs and to take into account all of the
considerations of national economic policy. In the present
situation it is doubly difficult, because we are confronted with
far-reaching economic adjustments.
The Committee will recall that this outlook prompted the
President to recommend a flexible tax program. He urged the
Congress to proceed as rapidly as possible with the basic minimum
portions of the revenue program and to defer action with respect
to the remainder until further economic and budgetary developments
could be observed and a variety of related problems resolved.

S-26I+6

28
-

2

-

We have carefully reviewed the events of the past two months
to determine their hearing on the requirements of the policy of
paying for expenditures as we go. There are a number of develop­
ments, especially with respect to the estimated budget position
for the current fiscal year, which are important to the Committee’s
deliberations,
Internal revenue collections associated with the filing of
income tax returns on March 15 indicate that the Government’s
revenues for this fiscal year will be about $2,7 billion higher
than anticipated in the January budget.
The indicated increase in revenues is due primarily to higher
receipts than expected from individual and corporate income taxes,
which provide the largest part of total receipts. However, a
significant part of the increase is attributable to greater than
expected collections from excise taxes, especially liquor taxes
and manufacturers’ excises, caused by an unusual expansion of
dealers’ inventories as well as increased consumer buying partly
in anticipation of prospective tax increases. In other words, part
of the unanticipated revenue is the result of scare buying and
rising prices which are reflected not only in higher living costs
but in higher defense costs as well.
In addition to the usual problem of appraising the effects
of recent tax legislation, revenue estimating is complicated by
the basic changes now taking place in the economy. When the
economy functions under strong pressure, when resources are
being reallocated between civilian and military needs, and when
the results of stabilization measures are not clear, important
changes in tax collections may occur in relatively short periods.
It is currently estimated that actual expenditures during
this fiscal year probably will be about $3
billion less than
those projected in the budget. The reduction in expenditures
this fiscal year is partly accounted for by savings in the civilian
programs and partly by the fact that financial settlements on
military deliveries have accelerated less than anticipated. Some
of the civilian reductions are in programs such as those adminis­
tered by the Veterans Administration and the Commodity Credit
Corporation, which are affected by changes in economic conditions.
The degree to which veterans draw on readjustment benefits, for
example, depends in part on employment opportunities. Funds
required by the CCC fluctuate with farm prices and farm loan
practices under the price support program.

]

29
-

3

-

With respect to the timing of defense spending, I am advised
by those charged with procurement activities that it is not
possible at this date to predict how promptly the obligation of
funds for defense contracts will be followed by actual expenditures.
Moreover, contractors are revealing an ability to operate for
relatively longer periods with their own financial resources and
with less recourse to the Government for payments on account than
was the case during World War II. In other words, military
production and the preparation for it precede by many months
actual financial demands on the Treasury.
The increased revenues and the lower rate of expenditures
combine to bring about an estimated surplus of about $3 billion
for this fiscal year compared with the anticipated deficit of
$2.7 billion presented in the January budget. I cannot emphasize
to^ strongly, however, that the current budget surplus is temporary
and that we must guard against the unwarranted conclusion that it
will be maintained in the future.
The extent to which recent revenue developments will carry
over to raise fiscal year 1952 revenues is not yet clear. In
the absence of unexpected developments, fiscal 1952 revenues are
at present estimated to be about $3 billion higher than anticipated
in the budget.
While the slower unfolding of the defense program may somewhat
retard the rate of increase in expenditures, the total cost of the
program is not thereby decreased and as a result of higher prices
may actually be increased.
Let me say as emphatically as I know how that the fiscal
problems facing us now are as grave as any which have confronted
this country in recent years and can be resolved only by forceful
and timely revenue legislation.
While the current fiscal situation is encouraging, this should
not be allowed to postpone adequate financial preparedness. We
must not fail to provide for the proper financing of our steadily
increasing defense production.
What we should recognize is that we have most of the financial
problems of a full-scale war without the emotional stimulation of a
wartime emergency to impel us to take the necessary action. The
lack of this stimulus must be compensated for by sober calculation
for our future welfare. We shall be gravely misled if we view our
problems and judge our needs in the light of day-to-day variations
in reports from trouble spots throughout the world.

30

r 4 £

Since Korea, the increase in defense expenditures has been
largely for the purpose of adding manpower to the armed forces.
Expenditures will increasingly shift to payments for heavy
equipment and facilities for additional output. Over threefourths of the defense orders already placed are for costly
fighting equipment and for facilities to expand its production.
As has been made evident to the Armed Forces Committees of theCongress, the steadily mounting financial drain of defense
orders will not reach its peak in Government expenditures for
more than a year. Before that peak is reached, defense expendi­
tures are expected to more than double.
The available information is not sufficient to permit a
forecast of just what the deficit under present taxes will he
month by month or precisely when the maximum level of expenditures
will be reached. In his budget message the President emphasized
that our expenditures for national security might be subject to
substantial adjustments as the program advanced. This caution
must be continued, It is possible, but by no means certain, that
actual fiscal year 1952 expenditures may be less than estimated
in January,
The Government agencies concerned assure me of three compelling
facts: (l) that the reduction in 1951 defense expenditures below
January budget projections is the result of changed timing of
payments and not due to any reduction in the program to which our
revenue planning must he geared; (2) that from now on the Government
will be spending at a faster rate than It will be collecting unless
its revenues are increased by additional tax legislation; and (3)
that defense costs in fiscal 1952 will be far greater than those
for 1951. and that they will not reach their peak before some time
in fiscal year 1953* These growing expenditures will generate
inflationary pressures which an adequate tax policy can help to
restrain.
The tax legislation required now should provide for the needs
that are unfolding. The full needs were not known on February 5
and they are not known today. The overfall requirements for
additional taxes under the defense program can be determined only
as time goes on. Our financial preparedness, however, must go
forward and the tax legislation required now should not be postponed.
This Committee is well aware of the emphasis I have placed on
the financial strength of the Government during my period of
service in the Treasury. A combination of circumstances'has enabled
the Government on net balance to have collected enough to cover its
disbursements since the end, of the war. Much is at stake in

continuing this policy through the mobilization period.
and adequate taxation lies at the heart of the economic
stabilization program.

Timely

Our present situation calls for foresight and determination
of the kind demonstrated by your Committee and the Congress last
year in adopting two revenue measures in the months immediately
following the Korean aggression.
The prudent course now is the prompt enactment of the tax rate
increases already recommended by the President. The increases in
the corporation and individual income taxes and the excise taxes
which I discussed with you on February $th represent the basic
changes in the tax structure that are now desirable.
In my previous statement I also discussed a number of
structural improvements in the tax system which are desirable in
the interest of equity and which would provide additional revenue.
The Committee may be ready to act on some of these, and I urge you
to include in your revenue bill as many of these revisions as can
be handled without unduly delaying the legislation.
The Treasury and Joint Committee staffs have been working
continuously on these matters and will be prepared to present the
results of their studies to the Committee,
On the basis of an evaluation of all the information now at
hand, it is my view that barring a major change in the defense
program action on the second part of the revenue program can now
be postponed until next January when we will have a firmer basis
for determining defense costs,
- I know, gentlemen, that you are in complete sympathy with my
desire that our financial stability be protected. Your timely
action last year is proof of this. My considered judgment can be
stated briefly: Defense expenditures will increase so rapidly in the
period ahead that the Treasury’s present budgetary surplus will
disappear quickly. While the exact course of defense spending
cannot now be blue-printed, it is all too clear already that within
tne coming fiscal year we shall need at least the $10 billion
minimum program recommended by the President. No one can know what
lies ahead, and it would be most imprudent to delay the legislation
required now for our financial preparedness.

/0 ^
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S - A J o

Two widely known West Coast figures ran afoul of the Bureau
of Internal Revenue today.
George J. Schoeneman, Commissioner of Internal Revenue, announced
that income tax liens have been filed in the Portland, Oregon, area
against Robert B. Allan and Lester T. Beckman of Portland.

The

J^otalJhaxes, penalties and interest involved for the years 19l*0
to 19k6 is $997ii|21^63i"^^'llan and Beckman were partners in
several enterprises, chief of which was the Coast Amusement
Company.

Through the partnership*^ and as individuals, they owned
A

music and pinball machines which were operated and sold in numerous
locations in and around Portland.

They also reputedly owned many

slot machines which were operated in clubs in that area.

33
I M M EDIATE RELEASE,
Monday, A p ril 2, 1 9 5 1 »

S-2647

Two w i d e l y k n o w n V e s t Coast figures r a n a f o u l of the
B u r e a u of I n t e r n a l R e v e n u e today.
George J. Schoeneman, C o m m i s s i o n e r of I n t e r n a l Revenue,
a n n o u n c e d that income tax liens h a v e b e e n f i l e d in the
Portland, Oregon, a r e a a g a i n s t R o b e r t B. A l l a n a nd L e s t e r T.
B e c k m a n of Portland.
The total taxes, p e n a l t i e s a nd int e r e s t
involved for the years 19 ^ 0 to 19 ^ 6 is $ 9 9 7 , ^ 2 1 . 6 3 .
The

liens

filed a g a i n s t A l l a n are:

Additional
Pen a l t i e s
I n t erest

tax due,

$283,105.13
8 1 4 1 , 7 2 7 .7 5
$ 9M59.52

Those a g a i n s t B e c k m a n are?
A d d i t i o n a l tax due,
P e n alties
Interest

$2 6 1 ,3 7 9 . 9 5
8 1 3 0 ,7 1 0 . 9 8

$ 8 6 ,3 3 8 .3 2

A l l a n a nd B e c k m a n were p a r t n e r s in s e v e r a l e n t e r prises,
chief of w h i c h was the Coast A m u s e m e n t Company.
Through
the pa r t n e r s h i p s , a nd as individuals, the y owned m u s i c and
pinball m a c h i n e s w h i c h were o p e r a t e d an d sold in n u m e r o u s
locations in a nd a r o u n d Portland.
T h e y also r e p u t e d l y
owned m a n y slot m a c h i n e s w h i c h wer e o p e r a t e d in clubs in
that a r e a .

0 O0

Secretary of the Treasury Snyder announced today that the
subscription books for the current offering of 2-3/1; percent
Treasury Bonds, Investment Series B-1975-80, in exchange for the
2-1/2 percent Treasury Bonds of June 15 and December 15, 1967-72,
will close at midnight Friday, April 6, 195>1*
Subscriptions addressed to a Federal Reserve Bank or Branch
or to the Treasury Department, and placed in the mail before midnight
of April 6 will be considered as having been entered before the close
of the subscription books.
Announcement of the total amount of subscriptions and their division
among the several Federal Reserve Districts will be made later.

The

Secretary said that subscriptions received and tabulated by Federal
Reserve Banks as of Monday, April 2, (including about $5,365,000,000
for Federal Reserve and Treasury investment account) exceed $11,000,000,000*
This figure of course does not include subscriptions in the mails.

R E A S U F t

/

1
TREASURY DEPARTMENT
Fiscal Assistant Secretary

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ó Cf

TUESDAY, APRIL

gp 19$I

Secretary of the Treasury Snyder announced today that the
subscription books for the current offering of 2~3/k percent
Treasury Bonds, Investment

cries B-1975-80, in exchange for the

2-1/2 percent Treasury Bonds of June lg and December 15, 1967-72,
«ill close at midnight Friday, April 6 , 1951*
Subscription© addressed to a Federal Reserve Barde or Branch
or to the Treasury Department, and placed in the mail before midnight
of April 6 «ill be considered as having been entered before the close
of the subscription books«
Announcement of the total amount of subscription© and their division
among the several Federal .Reserve District© will be made later«

The

Secretary said that subscriptions received and tabulated by Federal
Reserve Banks as of Monday, April 2, (including about #5,365,000,000
for Federal Reserve and Treasury investment account) exceed §3 1 ,000,000,000.
This figure of course doe© not include subscriptions in the mails«

EFBartelt/gwm

I M M E D I A T E RELEASE,
T uesday, A p r i l 3. 1 9 5 1.

S-2648

S e c r e t a r y of the T r e a s u r y S n y d e r a n n o u n c e d
t o d a y that the s u b s c r i p t i o n books for the current
o f f e r i n g of 2-3/4 p e r c e n t T r e a s u r y Bonds, I n v e s t m e n t
Series B - I 9 7 5 -8 O, in e x c h a n g e for the 2 - 1/2 p e r c e n t
T r e a s u r y B o n d s of June 15 an d D e c e m b e r 1 5 , 1 9 6 7 - 7 2
w i l l close at m i d n i g h t Friday, A p r i l 6 , 1 9 5 1 .
*
S u b s c r i p t i o n s a d d r e s s e d to a F e d e r a l R e s e r v e
B a n k o r ^ B r a n c h or to the T r e a s u r y D e p a rtment, and
p l a c e d in the m a i l b e fore m i d n i g h t of A p r i l 6 ¥ 1 1 1
be c o n s i d e r e d as h a v i n g b e e n e n t e r e d b e f o r e the
close of the s u b s c r i p t i o n books.
A n n o u n c e m e n t of the total a m o u n t of s u b s c r i p t i o n s
and their d i v i s i o n a m o n g the s e v e r a l F e d e r a l R e s e r v e
D i s t r i c t s w i l l be m a d e later.
The S e c r e t a r y said
that s u b s c r i p t i o n s r e c e i v e d and t a b u l a t e d by F e d e r a l
® a n k-s as
Monday, A p r i l 2, ( i n c l u d i n g a b o u t
j0 0 0 ,0 0 0 for F e d e r a l R e s e r v e a n d T r e a s u r y
i n v e s t m e n t account) e x c e e d $ 1 1 , 0 0 0 , 0 0 0 , 0 0 0 .
This
figure of course does not include s u b s c r i p t i o n s in
the m a i l s .

0 O0

Proposed Pros« Release
For Release» Merging lewspapers» April 9, 1951
George J. Sohoemenem, Commissioner of Internal Revenue, reminded
farm and household employers that they must report wages and pay
Federal social security taxes on those farm and household employees who
were brought into the old-age and survivors insurance system on January 1»
1951 • Whether or not a farm or household employee^ wages are subject
to the taxes depends on the nuaher of days worked for the employer and
the amount of cash earnings* The Federal social security tax and
information return for the quarterly period of Jaauary-February-Mareh
Is due on or before April 50, 1951, together with payment of the taxes*
A farm employer should make a return on Form 941 reporting the oash
wages paid to each employee who meets all three of the following testst
(s) He was employed by the employer (whether or not
doing farm work) oentinuouely throughout the quarterly period
of Ootober-Hovamber-Becesfcer, 1980» and
(b) He was employed by such employer in agricultural
labor on a full-time basis for at least #0 days in the
quarterly period of January-Fsbruary-laaroh, 19§lf «ad
(e) His cash earnings for such agricultural labor are
§50 or more*
This three-part test of liability applies not only to agricultural workers
but also to household employees in a primate home on a farm which is
operated for profit.
A different test, sometimes called the *|50— 24-day test11, should bs
used in determining whether or not the taxes apply to oash wages paid by
an employer for household work in a private ho*» which is not on a farm
operated for profit. The employer should make a return reporting the
oash wages for household work performed after 1950 paid to each employee
(a) who received from such employer, during the quarterly period of
Jaauary-February-Mareh, 1951, |50 or more in oash wages for household work
and (b) who performed household work for such employer on 54 or more
different days in that quarter or on 24 or more different day* in the
quarter of Oetober-WoTeabor-Beeember, 1950* If the employer also pays
wages to business employees whom he reports on Form 941, he may include
the houeeheld employees on the same form* Otherwise* the employer should
report the household employees on a return For* 942*
Every farm employer or household employer who is required to file
a return on or before April 80, 1951, but who does not have a blank return
form to use for this purpose, should promptly request a form from the
Gellector of Internal Revenue for his district*

oOo

Proposed Press Release
For Balsas»» Horning Newspapers, April 9» 1951
George #* Sehoenemea, Commissioner of Internal Revenue, reminded
fars and household employers that they must report vaga» and pay
Federal social security taxes on thoso farm and household employees who
were brought into the old-age and survivors insurance system on January 1,
1951* Whether or not a farm or household employee’s wages are subject
1so the taxes depends on the number of days worked for the employer and
the amount of cash earnings* The Federal social security tax and
information return for tfeo quarterly period of January-February-«Mareh
is due on or before April SO* 1951* together with payment of the taxes*
A farm employer should make a return on Form 941 reporting the cash
wages paid to each employee who meets all three of the following testes
(a) He was alloyed by the employer (whether or not
doing farm work) continuously throughout the quarterly period
of October*WGVomber«»&eeeaber, 1950; and

(b) He was employed by such employer In agricultural
labor on a full-time basis for at least €0 days In the
quarterly period of January-February-Maroh, 1951; and
(o) Sis cash earnings for such agricultural labor are
|!>Q or moro*
This throo*part test of liability applies not only to agricultural workers
but also to household employees In a private home on a farm which is
operated for profit*
A different test* sometimes called the "ISO— 24-day test91# should be
used in determining whether or not the taxes apply to cash wages paid by
an employer for household work in a private home which Is not on a farm
operated for profit. The employer should make a return reporting the
cash wages for household work performed after 1950 paid to each employee
(a) who received from such employer, during the quarterly period of
Jazusary«Fobru&ry*Maroh, 1951, |50 or more in cash wages for household work
and (b) who performed household work for such employer on 24 or more
different days in that quarter or on 24 or more different days in the
quarter of Getober»Wevember*&eeember, 1950* If the employer also pays
wages to business employees shorn he reports on Form 941, he may include
the household employees on the same form. Otherwise, the employer should
report the household employoes on a return Form 942,
Every farm employer or household employer who is required to file
a return on or before April 30, 1911, but who does not have a blank return
form to use for this purpose, should promptly request a form from the
Gollector of Internal Revenue for his district.

Proposed Press Release
For Release, Morning Newspapers, April 9, 1951

George J* Schoeneman, Commissioner of Internal Revenue, reminded
farm and household employers that they must report wages and pay
Federal sooial security taxes on those farm and household employees who
were brought into the old-age and survivors insurance system on January 1,
1951. "Whether or not a farm or household employee's wages are subject
to the taxes depends on the number of days worked for the employer and
the amount of cash earnings. The Federal social security tax and
information return for the quarterly period of January-February-March
is due on or before April 30, 1951, together with payment of the taxes*
A farm employer should make a return on Form 941 reporting the cash
wages paid to each employee who meets all three of the following tests«
(a) He was employed by the employer (whether or not
doing farm work) continuously throughout the quarterly period
of Ootober-November-Deceraber, 1950; and
(b) He was employed by such employer in agricultural
labor on a full-time basis for at least 60 days in the
quarterly period of January-February-March, 1951; and
(c) His cash earnings for such agricultural labor are
$50 or more*
This three-part test of liability applies not only to agricultural workers
but also to household employees in a private home on a farm which is
operated for profit*
A different test, sometimes called the "$50— 24-day test” , should be
used in determining whether or not the taxes apply to cash wages paid by
an employer for household work in a private home which is not on a farm
operated for profit. The employer should make a return reporting the
cash wages for household work performed after 1950 paid to each employee
(a) who received from such employer, during the quarterly period of
January-February-March, 1951, $50 or more in cash wages for household work
and (b) who performed household work for such employer on 24 or more
different days in that quarter or on 24 or more different days in the
quarter of October-November-December, 1950* If the employer also pays
wages to business employees whom he reports on Form 941, he may include
the household employees on the same form. Otherwise, the employer should
report the household employees on a return Form 942*
Svery farm employer or household employer who is required to file
a return on or before April 30, 1951, but who does not have a blank return
form to use for this purpose, should promptly request a form from the
Collector of Internal Revenue for his district*

oOo

TREASURY DEPARTMENT
Inform ation S e r v ic e

R E LEASE M O R N I N G N EWSPAPERS,
Monday, A p r i l 9, 1951-

WASHINGTON, D .C .

S-2649

George J. Schoeneman, C o m m i s s i o n e r of I n t e r n a l Revenue,
reminded f a r m and h o u s e h o l d e m p l o y e r s that they m u s t r e p o r t wages
and p a y F e d e r a l s o cial s e c u r i t y taxes on those f arm a n d h o u s e h o l d
employees w ho were d r o u g h t into the o l d - a g e an d s u r v ivors
insurance s y s t e m on J a n u a r y 1, 1951*
"Whether or n ot a f a r m or
h o u s ehold e m p l o y e e s w a ges are s u b j e c t to the taxes d e p e n d s on the
number of days w o r k e d for the e m p l o y e r a n d the a m o u n t of cash e a r n ­
ings . The F e d e r a l s o c i a l s e c u r i t y tax and i n f o r m a t i o n r e t u r n for
the q u a r t e r l y p e r i o d of J a n u a r y - F e b r u a r y - M a r c h is due on or b e f o r e
April 30, I9 5 I 5 t o g e t h e r w i t h p a r e n t of the taxes.
A far m e m p l o y e r s h o u l d m a k e a r e t u r n on F o r m 9^1 r e p o r t i n g
the cash w a ges p a i d to e a c h e m p l o y e e w ho m e e t s a l l three of the
following tests:
(a)
H e was e m p l o y e d b y the e m p l o y e r (w h e t h e r or
not d o i n g f a r m work; c o n t i n u o u s l y t h r o u g h o u t the
q u a r t e r l y p e r i o d of O c t o b e r - N o v e m b e r - D e c e m b e r , 1950; a nd
(b)
He was e m p l o y e d b y such e m p l o y e r in a g r i c u l t u r a l
labor on a ful l - t i m e b a s i s for at least 60 days in the
q u a r t e r l y p e r i o d of J a n u a r y - F e b r u a r y - M a r c h , 1951; a nd
(c)
His cash e a r n i n g s
are $ 5 0 or more.

for such a g r i c u l t u r a l

labor

This t h r e e - p a r t test of l i a b i l i t y a p p l i e s not o n l y to a g r i c u l t u r a l
workers b ut also to h o u s e h o l d e m p l o y e e s in a p r i v a t e h o m e on a
farm w h i c h is o p e r a t e d for profit.
A d i f f e r e n t test, s o m e times c a lled the ,'$50--24-day t e s t ” ,
should be use d in d e t e r m i n i n g w h e t h e r or not the taxes a p p l y to
cash wages p a i d b y a n e m p l o y e r for h o u s e h o l d w o r k in a p r i v a t e
home w h i c h is not on a far m o p e r a t e d for profit.
The e m p l o y e r
should m a k e a r e t u r n r e p o r t i n g the cash w a ges for h o u s e h o l d
work p e r f o r m e d a f t e r 1 9 5 0 p a i d to e a c h e m p l o y e e (a) w ho r e c e i v e d
from such employer, d u r i n g the q u a r t e r l y p e r i o d of J a n u a r y February-March, 1951, $50 or m o r e in cash w a ges for h o u s e h o l d
work and. (b) w ho p e r f o r m e d h o u s e h o l d w o r k for such e m p l o y e r on
24 or mor e d i f f e r e n t d ays in that q u a r t e r or on 2^ or m o r e d i f f e r e n t
days in the q u a r t e r of O c t o b e r - N o v e m b e r - D e c e m b e r , 1950*
If the
employer a l s o pays wages to b u s i n e s s e m p l o y e e s w h o m h e r e p orts

42
-

2

-

on F o r m
9kl, he m a y i n c lude the h o u s e h o l d e m p l o y e e s on the sameform.
Otherwise, the e m p l o y e r should r e p o r t the h o u s e h o l d
employees on a r e t u r n F o r m 9^2.
E v e r y f a r m e m p l o y e r or h o u s e h o l d e m p l o y e r wh o is r e q u i r e d
to file a r e t u r n on or b e f o r e A p r i l 30, 1951, but w h o does not
have a b l a n k r e t u r n form to use for this purpose, s h o u l d p r o m p t l y
request a form fro m the C o l l e c t o r of I n t e r n a l R e v e n u e for his
district.

oOo

~ 3 »

am

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 disbount at which

Treasury bills are originally sold by the United States shall be considered to
be interest.

Under Sections l\2 and 117 (a) (1) of the Internal Revenue Code,

as amended by Section 115 of the Revenue Act of 19Ul, the amount of discount at
•which bills issued hereunder are sold shall not be considered to accrue until
such bills shall be sold, redeemed or otherwise disposed of, and such bills are
excluded from consideration as capital assets.

Accordingly, the owner of

Treasury bills (other than life insurance companies) issued hereunder need in­
clude in his income tax return only the difference between the price paid for
such bills, whether on original issue or on subsequent purchase, and the amount
actually received either upon sale or redemption at maturity during the taxable
year for which the return is made, as ordinary gain or loss.
Treasury Department Circular No. Ul8, as amended, and this notice, prescribe
the terms of the Treasury bills and govern the conditions of their issue.
of the circular may be obtained from any Federal Reserve Bank or Branch.

Copies

-

2

-

unless the tenders are accompanied by an express guaranty of payment b y 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 sha

be final.

Subject to these reservations, non-competitive tenders for 3200,000

or less without stated price from any one bidder will be accepted in full at thd
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 12, 1951

> in cash or other immediately avai

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

April 12, 1951»

w ““ .
Cash and exchange tenders will receive equ&l treatment.

Cash adjustments willJ

made for differences between the par value of maturing bills accepted in exchani
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 aij
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 froij

all taxation now or hereafter imposed on the principal or interest thereof by

V

M U M S

TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Thursday, April 5* 1951________•

§3 fft

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

91 -day Treasury bills, for cash and

555E

April

12, 1951____

j

to be issued on

a discount basis under competitive and non-competitive bidding as hereinafter
April 12, 1951
> and
TO
, when the face amount vri.ll be payable without

provided.

The bills of this series will be dated

will mature

July 12, 1951
ffifc
They vri.ll be issued in bearer form only, and in denominations of

interest.

$1,000, $£,000, $10,000, $100,000, $£00,000, 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 9« 19£l
Tenders will not be received at the Treasury Department, Washington,

■

Each tender

must be for an even multiple of $1,000, and in the case of competitive tenders
the price offered must be expressed on the basis of 100, with not more than three
decimals, e. g., 99*92£.

Fractions may not be used.

It is urged that tenders

be made on the printed forms and forwarded in the special envelopes which 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 frcm others must be accompanied

by payment of 2 percent of the face amount of Treasury bills applied for,

TREASURY DEPARTMENT
Information Service

WASHINGTON, D .C

46
RELEASE M O O T I N G NEWS P A P E R S ,
Thursday, A p r i l 5, 1951»

S-26,50

The S e c r e t a r y of the Treasury, b y this p u b l i c notice, i n v ites
tenders for $ 1 , 0 0 0 , 0 0 0 , 0 0 0 , or t h e r e abouts, o f 9 1 - d a y T r e a s u r y
hills, for cash a n d in e x c h a n g e for T r e a s u r y b i l l s m a t u r i n g
April 12, 1 9 5 i , to be i s s u 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 b i d d i n g as h e r e i n a f t e r p r o v i d e d .
The b i l l s of
this series w i l l be d a t e d A p r i l 12, 1 9 5 1 , a n d w i l l m a t u r e J u l y 12,
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
vill be i s s u e d in b e a r e r f o r m only, a n d i n d e n o m i n a t i o n s of $ 1 ,0 0 0 ,
$5 ,0 0 0 , $ 1 0 ,0 0 0 , $ 1 0 0 ,0 0 0 , $ 5 0 0 ,0 0 0 , a n d $ 1 ,0 0 0 ,0 0 0 ( m a t u r i t y value).
T e n d e r s w i l l be r e c e i v e d at F e d e r a l R e s e r v e B a n k s a n d B r a n c h e s
up to t h e . c l o s i n g hour, two o ' c l o c k p.m., E a s t e r n S t a n d a r d time,
Monday, A p r i l 9 , 1951.
T e n d e r s w i l l n o t be r e c e i v e d at the
Treasury D e p a r t m e n t , W a s h i n g t o n .
E a c h t e n d e r m u s t be for a n e v e n
multiple of $1,000, a n d in the case of c o m p e t i t i v e t e n ders the •
price o f f e r e d m u s t be e x p r e s s e d o n the b a s i s of 100, w i t h no t m o r e
than three decimals, e. g., 99-925.
F r a c t i o n s m a y n o t be used*
It
is urged that tenders be m a d e on the p r i n t e d forms a n d f o r w a r d e d
in the s p e c i a l e n v e l o p e s w h i c h w i l l be s u p p l i e d b y F e d e r a l R e s e r v e
Banks or B r a n c h e s on a p p l i c a t i o n therefor.
Others t h a n b a n k i n g i n s t i t u t i o n s w i l l n ot be p e r m i t t e d to
submit .tenders e x c e p t for t h e i r o w n accou n t .
T e n d e r s w i l l be
received 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 n d t r u s t c o m p a n i e s
and from r e s p o n s i b l e a nd r e c o g n i z e d d e a l e r s In i n v e s t m e n t s e c u rities.
Tenders f r o m o t h e r s m u s t be a c c o m p a n i e d b y p a y m e n t of 2 p e r c e n t of.
the face a m o u n t of T r e a s u r y b i l l s a p p l i e d for, u n l e s s the t e n ders
are a c c o m p a n i e d b y a n e x p r e s s g u a r a n t y of p a y m e n t b y a n i n ­
corporated b a n k or' tr ust 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 nks a n d B r a n c h e s , f o l l o w i n g w h i c h p u b l i c
announcement w i l l be m a d e b y the S e c r e t a r y of the T r e a s u r y of the
amount and p r i c e r a n g e of a c c e p t e d bids.
T h o s e s u b m i t t i n g tenders
be a d v i s e d of the a c c e p t a n c e o r r e j e c t i o n thereof.
The
Secretary of the T r e a s u r y e x p r e s s l y r e s e r v e s the r i g h t to a c c e p t or
deject a n y or a ll tenders, i n w h o l e or in part, a n d h i s a c t i o n in
any such r e s p e c t s h all be final.
Su b j e c t to these r e s e r v a t i o n s ,
non-competitive te n d e r s fo r $ 2 0 0 ,0 0 0 or less w i t h o u t s t a t e d p r i c e
Irom a ny one b i d d e r w i l l be a c c e p t e d in f u l l at the a v e r a g e p r i c e

2
(in three d e c i m a l s ) of a c c e p t e d c o m p e t i t i v e bids.
S e t t l e m e n t for
a c c e p t e d tenders in a c c o r d a n c e w i t h the b i d s m u s t be m a d e or
c o m p l e t e d at the F e d e r a l R e s e r v e B a n k on A p r i l 12, 1951, in c ash
or o t h e r i m m e d i a t e l y a v a i l a b l e funds or in a like face a m o u n t of
T r e a s u r y b i l l s m a t u r i n g A p r i l 12, 1951.
C ash a nd e x c h a n g e tenders
will receive equal treatment*
C a s h a d j u s t m e n t s w i l l be m a d e for
d i f f e r e n c e s b e t w e e n the p a r v a l u e of m a t u r i n g b i l l s a c c e p t e d in
e x c h a n g e a n d the issue p r i c e of the n e w bills.
The i n come d e r i v e d fro m T r e a s u r y bills, w h e t h e r i n t e r e s t or
g a i n f rom the sale or o t her d i s p o s i t i o n of the bills, s h all n o t
h a v e a n y exemption, as such, a n d loss f r o m the sale or o t h e r
d i s p o s i t i o n of T r e a s u r y b i lls s h all n o t h a v e a n y s p e c i a l treatment,
as such, u n d e r the I n t e r n a l R e v e n u e Code, or laws a m e n d a t o r y or
s u p p l e m e n t a r y thereto.. T h e - b i l l s s h all be. s u b j e c t to estate,
i nheritance, gift or o t h e r e x c i s e taxes, w h e t h e r Federal, or State,
but s h all be e x e m p t f rom a ll t a x a t i o n n o w or h e r e a f t e r i m p o s e d on
t h e * p r i n c i p a l or in t e r e s t t h e r e o f b y a n y State, or a n y of the
p o s s e s s i o n s of the U n i t e d States, or b y a n y l o cal t a x i n g authority.
F o r p u r p o s e s of t a x a t i o n the a m o u n t of d i s c o u n t at w h i c h T r e a s u r y
bills are o r i g i n a l l y sold b y the U n i t e d States s h all be c o n s i d e r e d
to be i n t e r e s t .
U n d e r S e c t i o n s k2 a n d 117 (a) (l) of the I n t e r n a l
R e v e n u e Code, as a m e n d e d b y S e c t i o n 115 of the R e v e n u e A c t of 19^1,
the a m o u n t of d i s c o u n t at w h i c h b i l l s I s s u e d h e r e u n d e r are sold
s h all n ot 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 s h all be sold,
r e d e e m e d or o t h e r w i s e d i s p o s e d of, a nd such b i l l s are e x c l u d e d
f r o m c o n s i d e r a t i o n as c a p i t a l assets.
A c c o r d i n g l y , the o w n e r of
T r e a s u r y b i l l s (other tha n life I n s u r a n c e comp a n i e s ) i s s u e d h e r e ­
u n d e r n e e d i n c l u d e in h i s income tax r e t u r n o n l y the d i f f e r e n c e
b e t w e e n the p r i c e p a i d f o r such bills, w h e t h e r on o r i g i n a l i s sue
or -on s u b s e q u e n t p u r c h a s e , a nd the a m o u n t a c t u a l l y r e c e i v e d e i t h e r
u p o n sale or r e d e m p t i o n at m a t u r i t y d u r i n g the t a x a b l e y e a r f or
w h i c h the r e t u r n is made, as o r d i n a r y g a i n or loss.
T r e a s u r y D e p a r t m e n t C i r c u l a r No. 4l8, as amended, a n d this
notice, p r e s c r i b e the terms of the T r e a s u r y b i l l s a n d g o v e r n the
c o n d i t i o n s of t h eir issue.
Copies of the c i r c u l a r m a y be o b t a i n e d
f r o m any,'.Federal R e s e r v e B a n k or Branch.

0 O0

\
TREASURY DEPARTMENT
Fiscal
Service

STATUTORY DEBT LIMITATION
AS OF March

__

Washington,

.AJl£#.««i|*.....l9,5l

Section Zl 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 maybe held by the Secretary of the Treasury), "shall not
exceed in the aggregate $275 ,000,0 »,000 (Act of June 26, 1946; T.S.C., title si, sec. 757b), outstanding at
any one time. For purposes of this section the current redemption value of any cfcligation issued on a discourt
basis which is redeemable prior to maturity at the cpticn of the holder shall be considered as its face amount,'1
The following table shows the face amount of obligations outstanding and the face amount which can still
be issued under this limitation;
$ 2 7 5 ,0 0 0 ,000,000

Total face amount that may be outstanding at any cane time
Outstanding
Obligations issued under Second Liberty Bond Act, as amended
s$

5 S S m h 8*— __......_____

Certificates of indebtedness___ *■*
Treasury «ft*______________
Bonds —
Treasury
..__ «. ______
Savings .(current redemp. value)..«,
Depoeitary____ _________ «__
Armed Forces leave________
Investment series___________
Special Funds Certificates
indebtedness
Treasury notes ______ ____
Tctal interest-bearing __
Matured, interest—ceased___ ____
Bearing no interest;
War savings stamps ___________„«....
Excess profits tax refund bonds
Special notes of the United States;....«
Internat*1 Monetary Fund Series — „
Total_,___,_____________ ____ _

$ 13,630,074,000
52,098,065,400$ 6 5 ,7 2 8 ,13 9 ,4 0 0
9^» 03^» 715,300
57,763,7“«),765
299 »^ 3 »5^0
93.389,825
.,,95,2 i.9Ì5juQQP

19.766.415.000
13 758 088.000

. .

153,144,244,390

33,524,503,000
252,396,886,790
586,427,177

^8 *200^3)89

2,606*572
1*270*000,000
1,320,806,961
__________
25^,30^,120,928

Guaranteed obligations (not held by Treasury);
Interest—bearing;
Debentures; F.H.A. ___ _____........___
Demand obligations; C.C.C.___ __,____
Matured, interest—ceased.-— — — .— ....— ««..

18 * 611,236

30*096

18,641,332
1,996,300
20,637,632

Grand total outstanding....________________,,„.«.«______ ___
Balance face amount of obligations issuable under above authority

254.324.758.56L
„20*675 , 2^1* ^

Beconcilement with Statement of the Public Debt — March 31* 1951
(Daily Statement of the United States Treasury, April 2, 1951)
Outstanding —

Total gross public debt ___ _____ ________ ___ _____________ — -- ---------- 254,997,006,206
20.637,63t
Guaranteed obligations rot owned by the Treasury.. ..... ... .. ......... . ..
Total gross public debt and guaranteed obligations ___ ____ ___ _„«...„_________ 255,017,643,838
692.885.27L
Deduct — other outstanding public debt obligations rot subject to debt limitation... _

254,324,758,560

4d
April 9

STATUTORY DEBT LIMITATION
AS OF MARCH .31, 1951

19 5 1

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
Ixceed in the aggregate $275,000,000,000 (Act of June 26, I9h6; U.S.C#,title 31,
feeco
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
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
■ace amount which can still be issued under this limitations
total face amount that may be outstanding at any one time
Outstanding

$275,000,000,000
9 9 9

I Obligations issued under Second Liberty Bond Act, as amended
Interest-bearing:
Treasury bills*.*..„..*»**.... *$ 13,630,07k,000
Certificates of indebtedness«#**
«
Treasury n o t e s * # . 52,098,065,1*00 ^ 6^,728,3 3 9 ,boo
Bonds ni'*'"
Treasury . . . « c , » . . » , 9 l * , 0 3 i * , 715,300
Savings (current redemp*value)
57,763,71*0,765
Depositary **«».«»«.
299, ¿.1*3,500
Armed Forces Leave..... .
93,389,825
Investment series...... ..*•»*
952,955,000 l53,ll*l*,2i*l*,390
Special Funds Certificates of indebtedness*.
19,766,1*15,000
Treasury notes*•»»*•»••••«*. 1 3 , 7 5 8 , 0 8 8 , 0 0 0 33,521*»503#000
L . j T?t ? 1 interest-bearing..... .........
2 52 ,396,m . ' m
Matured, interest-ceased...... ...... ........... .

I Bearing no interest:
War savings stamps,......... ......
Excess profits tax refund bonds»..
Special notes of the United States:

I Total#............•#.*#**•#•*.«*«»••
m.x_înternatîl MonetarY Fund series*
.»•«•

586,it27,177

1*8,200,3 89
2,606,572
1,270,000,000

1 ,320,806,961

.................. .. ¿51*,50L,120,925

guaranteed obligations (not held by Treasury):
I Interest-bearing:
Debentures: F.H.A.........
18,611,236
Demand obligations: C.C.C....*..*.
30,096
J a ured, interest— ceased*«,•
.••••«*•#0•«.«**»... **.

18,61*1,332
1 ,998,300
2o ’637 oT2
I Grand total outstandingp..o»o**.».*.e*#4>(i##(>#####Ji#||#
25k•
<75ft
j^ c e face amount of obligations issuable under above authority..*# “7 0 ,6 75^21*1*1®

Reconcilement with Statement of the Public Debt — March 3 1 , 1951
(Daily Statement of the United States Treasury, April 2# 1951)
^standing 7
GUaran+o0^S
# *...... 251*, 997,006,206
Tnf uteed obligations not owned by the Treasury#.#.,*.,,*.,....»,*
Isduet ^r+fS
^ ^ t and guaranteed obligations*...e••*••••
duct - other outstanding public debt obligations not subject to
ebt limitation..... .................. ............... ..»*«.

"

?0 6^7
2^55,0 1 7 #61*3*838
■
7,61*3,838
692,885,278
^71^,758,560

"2651

-

2

-

under the community property law of California, they
filed separate n t i b q s in 1946 and 1947, splitting
Cohen9s income between''him, and in 194| they filed
a joint return^-

^

Cohen has been variously described as a gangster ,
hoodlum, racketeer, and extortionist.

Be has a long

record of arrests for embezzlement, suspicion of
murder, suspicion of robbery, suspicion of assault
with a deadly weapon, conspiracy, obstruction of
justice, mid other offenses.

He pleaded guilty to

embezzlement in Cleveland in 1934 and received a
suspended sentence of two years.

In 1946 he served

six months in the Los Angeles jail after conviction
on a bookmaking charge.

Be pleaded guilty in 1942 to

a charge of cutting telephone wires, and was fined

$ 200.
Cohen shot and killed a bookmaker in Loa Angeles
in 1945, but was released without trial on self-defense
plea.

When he was fined $5 on a crap-shooting charge

in 1943, he described himself as a farmer.

oOo

3

.

Á Federal indictment against Mickey Cohen, California
hoodlum, and his v ü e vas added today to the long list
of actions against members of the criminal element vhich
hare grown out of Bureau of Internal Revenue income tax
invest igations.
The Cohen indictment was handed down by the Federal
grand jury at Los Angeles, following presentation to
the grand jury by the Baited States Attorney for the
Southern District of California, Ernest Telia, of
extensive evidence which He venue Service investigators had
gathered during the last two years.
Five counts in the indictment charge the wilful
evasion of income taxes, and a sixth count charges
the filing of false documents in connection with
income tax returns.
/K

Cohea^i» accused of understating

income for

the years 1046, 1047 and 1048 in the amount of
$160, 420.06 .

The indictment charges that on this

income, Cohen} owe^f additional taxes of $07,344.71.
Cohen^ xs subject to the levying of a 50 percent
penalty on the additional taxes asserted to be due.
All counts in the indictment are felonies, and
imprisonment or fines or both could be inflicted upon
conviction.

wife i

2

uWer

the c o m m u n i t y p r o p e r t y

law of California, >ttiey

f i l ^ d separate. r e t u r n s ,i r k 1946 and 1^4y>
CohenSe

income b e t w e e n t h e m V ^ n d

splittin^^

in 1 9 4 8 N ^ i e y f i l e d \

a j o i n t return.
C o h e n h as b e e n v a r i o u s l y d e s c r i b e d as a gangster,
hoodlum,

racketeer,

and e x t o r t i o n i s t .

r e c o r d of ar r e s t s for em b e z z l e m e n t ,
murder,

s u s p i c i o n of robbery,

w i t h a d e a d l y weapon,
justice,

embezzlement

o b s t r u c t i o n of

He p l e a d e d g u i l t y to

in C l e v e l a n d in 1934 and r e c e i v e d a

s u s p e n d e d s e n t e n c e of two years.
six m o n t h s

s u s p i c i o n of

s u s p i c i o n of a s s a u l t

conspiracy,

a nd o t h e r offenses.

He ha s a long

In 194

he s e r v e d

in the Los A n g e l e s jail a f t e r c o n v i c t i o n

o n a b o o k m a k i n g charge.

He p l e a d e d g u i l t y in 1942 to

a c h a r g e of c u t t i n g t e l e p h o n e wires,

and w a s f i n e d

$ 200.
C o h e n shot a n d k i l l e d a b o o k m a k e r
in 1945,
plea.

in Los A n g e l e s

b ut w a s r e l e a s e d w i t h o u t trial o n s e l f - d e f e n s e

W h e n he w a s f i n e d $5 o n a c r a p — s h o o t i n g c h a r g e

in 1943,

he d e s c r i b e d h i m s e l f as a farmer.

oOo

/ n (\
/

/ f

A Federal indictment against Mickey Cohen, California
hoodlum, and his wife was added today to the long list
of actions against members of the criminal element which
have grown out of Bureau of Internal Revenue income tax
investigations.
The Cohen indictment was handed down by the Federal
grand jury at Los Angeles, following presentation to
the grand jury by the United States Attorney for the
Southern District of California, Ernest Tolin, of
extensive evidence which Revenue Service investigators had
gathered during the last two years.
Five counts in the indictment charge the wilful
evasion of income taxes, and a sixth count charges
the filing of false documents in connection with
income tax returns.
T U

Cohen} iaT^iccused of understating^his income for

the years 1946, 1947 and 1948 in the amount of
$160, 420.96 .

The indictment charges that on this

income, Cohen} owe^ additional taxes of $97,344.71.

? U ^

Cohen} ¿^subject to the levying of a 50 percent
penalty on the additional taxes asserted to be due.
All counts in the indictment are felonies, and
imprisonment or fines or both could be inflicted upon
conviction.
e D^partm^nt of Justfbe stated
wife wasNaamed in thfexindictmenr'for the

TREASURY DEPARTMENT
WASHINGTON, D .C

Inform ation S e r v ic e

53

IMMEDIATE RELEASE,
Friday, A p r i l 6 , 1 9 5 1 .

S -2 6 5 2

A F e d e r a l i n d i c t m e n t a g a i n s t M i c k e y Cohen, C a l i f o r n i a
h o o d l u m , a n d h i s w i f e w a s a d d e d t o d a y to t h e l o n g l i s t of
actions a g a i n s t m e m b e r s of the c r i m i n a l e l e m e n t w h i c h h a v e
grown out o f B u r e a u of I n t e r n a l R e v e n u e i n c o m e t a x i n v e s t i g a t i o n s .
T h e C o h e n i n d i c t m e n t w a s h a n d e d d o w n b y t he F e d e r a l g r a n d
jury a t L o s A n g e l e s , f o l l o w i n g p r e s e n t a t i o n to t he g r a n d j u r y
by the U n i t e d S t a t e s A t t o r n e y f o r t h e S o u t h e r n D i s t r i c t o f
California, E r n e s t Tolin, of e x t e n s i v e e v i d e n c e w h i c h R e v e n u e
Service i n v e s t i g a t o r s h a d g a t h e r e d d u r i n g the last two years.
Five
of i n c o m e
documents

c o u n t s i n t he i n d i c t m e n t c h a r g e t he w i l f u l e v a s i o n
t a x e s , a n d a s i x t h c o u n t c h a r g e s the f i l i n g o f f a l s e
in c o n n e c t i o n w i t h income tax returns.

The Cohens are a c c u s e d of u n d e r s t a t i n g t h e i r income for
the y e a r s 1 9 46, 1 9 4 7 a n d 1 9 4 8 i n the a m o u n t o f $ 1 6 0 , 4 2 0 . 9 6 .
The i n d i c t m e n t c h a r g e s t h a t o n t h i s i n c o m e the C o h e n s owe
additional taxes of $97,3^4.71.
T h e C o h e n s a r e s u b j e c t to
the l e v y i n g o f a 50 p e r c e n t p e n a l t y o n t h e a d d i t i o n a l t a x e s
a s s e r t e d to b e due.
A l l c ounts in the i n d i c t m e n t are felonies,
and i m p r i s o n m e n t o r f i n e s o r b o t h c o u l d b e i n f l i c t e d u p o n
convic t i o n .
C o h e n h a s b e e n v a r i o u s l y d e s c r i b e d as a g a n g s t e r , h o o d l u m ,
rac k e t e e r ,
and extortionist.
He has a long r e c o r d of arrests
ror e m b e z z l e m e n t , s u s p i c i o n o f m u r d e r , s u s p i c i o n of r o b b e r y ,
suspicion of a s s a u l t w i t h a d e a d l y weapon, c o n s p i r a c y ,
obstruction of justice, and o t h e r offenses.
He pleaded guilty
o e m b ezzlement in C l e v e l a n d in 193^ &nd r e c e i v e d a s u s p e n d e d
sentence o f t wo y e a r s .
I n 1 9 4 6 h e s e r v e d s i x m o n t h s i n the
Los A n g e l e s j a i l a f t e r c o n v i c t i o n o n a b o o k m a k i n g c h a r g e .
He
pleaded g u i l t y i n 1 9 4 2 to a c h a r g e o f c u t t i n g t e l e p h o n e w i r e s ,
and w a s f i n e d $ 2 0 0 .
C o h e n s h o t a n d k i l l e d a b o o k m a k e r i n L o s A n g e l e s i n 1945,
out w a s r e l e a s e d w i t h o u t t r i a l o n s e l f - d e f e n s e p l e a .
W h e n he
f i n e d $5 o n a c r a p - s h o o t i n g c h a r g e i n 1943, h e d e s c r i b e d
himself a s a f a r m e r .

oOo

K 74
V

V

RELEASE, HORNIHG RStfSPAFESS,
Tuesdayj April IO* 1951«

The Secretary o f the Treasury announced la s t evening that the tenders fo r
1 1 ,0 0 0 ,0 0 0 ,0 0 0 , or thereabouts, o f 91-day Treasury b ills to be dated A p ril 12 and to

mature July 12, 1951, which were offered on A p ril 5, were opened at the Federal Be*
serve Banks on A p ril 9«
The d e ta ils o f th is issue are as follow st
Total applied for * $1,71*3,013,000
Total accepted
- 1,000,603,000 (includes $117,618,000 entered on a
non-competitive basis and accepted in
full at the average price shown below)
Average price
- 99.611* Equivalent rate of discount approx« 1*528$ per annum
Range of accepted competitive bide:
High
Low

- 99.630 Equivalent rate of discount approx* l.i*61*$ per annum
- 99*612
«
«
*
*
«
1*535$ *
*
(90 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
St, Louis
Minneapolis
Kansas City
Dallas
San Francisco

1

i

TOTAL

17»59l*,000
1,285,1*1*1,000
2 5 ,7 2 5 ,0 0 0
50,21*0,000
5 ,3 6 7 ,0 0 0
1 6 ,6 3 9 ,0 0 0
1 9 8 ,7 7 7 ,0 0 0
1 8 ,9 5 1 ,0 0 0
li,197,000
3 0 ,2 6 1 ,0 0 0
3 2 ,6 8 2 ,0 0 0
5 7 .1 3 9 .0 0 0

#1,71*3,013,000

i5,l*9l*,ooo
6 7 7 ,2 9 1 ,0 0 0
li*,725,000
38,91*0,000
5 ,3 6 7 ,0 0 0
1 6 ,6 3 9 ,0 0 0
132,577,000
1 7 ,7 9 1 ,0 0 0
1*,197,000
3 0 ,2 6 1 ,0 0 0
22,1*82,000
2l*,839,000

# 1 ,0 0 0 ,6 0 3 ,0 0 0

TREASURY DEPARTMENT
Information Service

WASHINGTON, D.

55
RELEASE M O R N I N G NEWSPAPERS,
Tuesday, A p r i l 10, 1 9 5 1 . __

S - 2Ö53

The Secretary of the T r e a s u r y a n n o u n c e d last e v e n i n g that the
tenders for $ 1 , 0 0 0 , 0 0 0 , 0 0 0 , or t h e r e abouts, of 9 1 - d a y T r e a s u r y bills
to be d a t e d A p r i l 12 and to m a t u r e J u l y 12, 1951, w h i c h wer e o f f e r e d
on A p r i l 5, w e r e o p e n e d at the F e d e r a l R e s e r v e B a n k s on A p r i l 9.
The d e t a i l s

of this issue are as follows:

T o t a l a p p l i e d for - $ 1 , 7 4 3 , 0 1 3 , 0 0 0
T o t a l accepted1,000,603,000

Average price

Range

(includes $ 1 1 7 , 6 1 8 , 0 0 0
e n t e r e d on a n o n - c o m p e t i t i v e
b a s i s a n d a c c e p t e d in full
at the a v e r a g e p r i c e s h o w n
below)
- 99.6 1 4 E q u i v a l e n t rate of d i s c o u n t approx.
1 . 528$ p e r a n n u m

of a c c e p t e d c o m p e t i t i v e bids:

High

- 9 9 . 6 3 0 E q u i v a l e n t rate
1.464$
- 99.6 1 2 E q u i v a l e n t rate
1.53 5 $

L ow

of d i s c o u n t approx,
per annum
of d i s c o u n t approx,
per annum

(90 p e r c e n t of the a m o u n t bi d for at the low p r i c e was a c c e p t e d )
Federal R e s e r v e
District

Total
Applied

Boston
New Y o r k
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas Cit y

$

Total
Accepted

for

17,594,000
1,285,441,000
25.725.000
50.240.000
5.367.000

$

14.725.000
38.940.000

5,367,000

.

16.639.000

16 639.000

198,777,000

132,577,000
17.791.000
4,197,000

18 ,951,000
4.197.000

Dallas

3 0 ,2 6 1 , 0 0 0
3 2 ,6 8 2 , 0 0 0

San F r a n c i s c o

57,139,000
TOTAL

15,494,000

677,291,000

$1,743,013,000
0 O0

30.261.000
22.482.000
24.839.000
$ 1,

000 , 603,000

/

M E D I A T E RELEASE,
Monday, April 9S 1951»

Secretary of the Treasury Snyder announced today that he was
gratified by the response to the Treasury^ offering of 2-3/U percent
Treasury Bonds, Investment Series B-1975-80, which had been available during
the past two weeks in exchan^

_ II.

June l5 and December 15, 1967-72.

2-1/2 percent Treasuiy Bonds of

The exchange offering closed at midnight

last Friday, April 6, 1951»
The Secretary said that subscriptions thus far received and tabulated,
which will be augmented somewhat by mail subscriptions not yet tabulated,
exceed $13,ii50,000,000.

This figure includes about $5*583,000,000 for

Federal Reserve and Treasury Investment Accounts.
Announcement of the total amount of subscriptions received and their
division among the several Federal Reserve Districts will be made later in
the week.

57
I M M E D I A T E RLEASE,
M o n d a y, A p r i l ft, 1951

s-26 5 b

S e c r e t a r y of the T r e a s u r y S n y d e r a n n o u n c e d t o d a y
that
he was g r a t i f i e d b y the r e s p o n s e to the
T r e a s u r y ' s o f f e r i n g of 2 - 3 A p e r c e n t T r e a s u r y B o n d s
I n v e s t m e n t Series B - 1 9 7 5 - 8 0 , w h i c h were a v a i l a b l e
d u r i n g the pas t two w e e k s in e x c h a n g e for o u t s t a n d ­
ing 2 - 1/2 p e r c e n t T r e a s u r y B o n d s of June 1 5 a nd
D e c e m b e r 1 5 , 1 9 6 7 -7 2 , The e x c h a n g e o f f e r i n g c l osed
at m i d n i g h t last Friday, A p r i l 6 ,1 9 5 1 .
The S e c r e t a r y said that s u b s c r i p t i o n s thus far
r e c e i v e d a nd tabulated, w h i c h w i l l be a u g m e n t e d
s o m e w h a t b y m a i l s u b s c r i p t i o n s n ot yet tabulated,
exceed $13,^50,000,000.
This figure i n c ludes a b out
$ 5 , 5 8 3 , 0 0 0 , 0 0 0 for F e d e r a l R e s e r v e a nd T r e a s u r y
Investment Accounts.
#A n n o u n c e m e n t of the total a m o u n t of s u b s c r i p t i o n s
r e c e i v e d a nd t h eir d i v i s i o n a m o n g the s e v e r a l F e d e r a l
R e s e r v e D i s t r i c t s w i l l be m a d e later in the week.

0 O0

w

16

-

-

n0n 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 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,”
I thank you.
&

*

*

*

«

0 If 51 •$£
>r

In,

**

ft #
*

x

aBF

ea

- 15 -

Suggestions for revision of the tax statutes are now being
studied for the Congress by a subcommittee of the House Ways
and Means Committee.

These suggestions would fortify the

tax code against evasions of the types of which 1 have spoken.
Generally, they would give our agents a stronger hand in
dealing with willful cases of improper returns and improper
tax records.
In closing, I want to repeat some remarks by Secretary
Snyder which I had the privilege of reading for him before the
Kefauver Committee at the last of its public sessions, a
short time ago.

The Secretary said:

*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.

Even for more effective Federal tax enforcement,
our laws have some shortcomings*

We have our problems

of income tax law enforcement just as the Kefauver
Committee found itself facing problems of how to elicit
information from recalcitrant witnesses*

And the

Kefauver Committee, of course, had all the power of
Congress behind it to punish contemptuous and lying
witnesses*
The very nature of our voluntary self-assessment
tax system requires a specially diligent effort to make
it work with respect to those who derive their income
from illegal enterprises*

They are not the sort of

people whose records can be relied upon, and our agents
are not so naive as to think they can be*

This forces

our investigators many times to put in long months of
work gathering the most difficult varieties of evidence to
create a net worth case*
almost impossible one*

Sometimes the job Is an

13

- 13-

But I distinctly do not want to prophesy that the acti­
vities of the Special Fraud Section, or indeed 0

any other

portion of the Revenue Service, will obviate the necessity
for greater vigilance on the part of local law enforcement
authorities against all manner of racketeer and gangster
criminality*
Almost every day, some writer or speaker implies
publicly that the Revenue Service should bear general law
enforcement responsibilities, and is in fact to blame for
the very existence of gambling and racketeering.

For this

attitude there is no basis in present public policy as ex­
pressed in the Federal statutes.

Nor is there any basis

for it in the Service’s appropriations and its manpower
situation.
If State and local governments are to remain impotent
against the leaders of organized crime, then the question
presents itself whether we should enact Federal laws aimed
directly, or as directly as constitutional limitations will
permit, at the basic crimes of which the hoodlums are guilty.
There is little logic in reliance on the Federal tax laws for
the general punishment of State and local gambling and simi­
lar crimes, as distinguished from the punishment of the
crime of Federal income tax evasion.

When an enforcement ease hears the earmarks of fraud,
by
it is taken over/the special agents of the Revenue Service
Intelligence Unit,

During 1950, 314 cases involving

racketeers and gamblers received the attention of the
Intelligence Unit investigators.

They constituted more than

12 percent of all fraud investigations which that Unit con­
ducted.

And they turned up $24 million in additional taxes

and penalties proposed for assessment.

They also resulted

in 1932 recommendations for criminal prosecutions.
1

new step has just been taken to render front line

enforcement still more effective.

By direction of Secretary

Snyder, the Revenue Service Is now in process of organizing
a Special Fraud Section, made up of investigators who have
shown superior skill at breaking through the false financial
fronts of the "big time" tax evaders.

This Section will de­

vote its entire time to inquiries into tax-dodging by gamblers,
racketeers and others of the confirmed criminal stripe.
I am willing to prophesy that the work of this Special
Fraud Section will be productive of many violent headaches
for racketeers and gangsters in thg days to come.

£3
-

half —

?8,000 persons —

11-

is assigned to what we ©all

nfront lino enforcement®, beginning with the sifting
out of returns which apoear deserving of close scrutiny,
and nroceeding through the ih ole catalog of enforcement
work right up to the handling of the cases agains t the
Cohens and the Capones*

§

\

a few will be helpful.
The Revenue Service has at present 55,500 employees*
It administers not only the individual income tax,
but 78 other Federal tax levies*
The tax returns which must be received and processed
each year number 90 million.
In addition, about ISO million related documents, such
as records of income tax withholdings, must be received and
processed.
Last year the Revenue Service collected nearly $39
billion.

This fiscal year the total will rise to almost

$48 billion.

In the fiscal w a r 1952 It probably fill reach

p

$50 billion,

...... .

The annual costs of the Service total about $246 million,
so that the expense of collecting each $100 of revenue is
about 59 cents,

A1
* #

But that 59 cents per $100 is an average figure. ,
That keens
it so low is the fact that 90 ipercent of the
ir
taxes are m i l voluntarily by those honest and straightforward

m

citizens to #iom I referred earlier.
It takes half of the entire Revenue Service personnel
to collect the other 10 percent of the federal taxes.

This

think that you and I and all the other individuals who make up the
public, must guard carefully against contributing in any illconsidered way to the weakening of that cooperation»
Let me tell you with the utmost sincerity that your confidence
in the Revenue Service is fully merited*

Its personnel enforces the

tax laws vigorously, honestly and impartially*
During the years of my association with the Treasury Department
in various capacities from General Counsel to Under Secretary, the
number of employees of the Internal Revenue Service who have be­
trayed their trust has been infinitesimal.

And the departure of

these very, very few from the path of rectitude has, in every case
that I recall, been discovered through the pride and the precautions
of the ^ r r i c e itself.
5

>

You perhaps read in recent months of a blast of criticism
against the Revenue Service issued by the California Crime Commission
When the blast was reduced, through careful analysis, to factual
elements, it involved asserted misdeeds of two or three deputies in
the California and Nevada collection offices*

We stated publicly,

by way of comment, that Treasury investigations into these misdeeds
had been under way for some time*

Since then, on the evidence our

investigators obtained, two employees have been fired, and one of
them and a former employee have been indicted*
I donft want to burden you with figures*

But perhaps

33

.made you do it?1*
Mr* <*mithff, said Jim» "you see it was like this*
This feller came by the farm the other night, and I invited
him in for supper.
furniture*

Right awav he started criticising the

Well* * let that pass because our furniture ain%
*

any great shakes at be sty

Then he t&ed off on the food*
;-9

W cll, 2 let that pass, too,

A lot of times ay wife's cooking

jleaves a little something to be desired.

Then my wife came

t i n out of the kitchen, and he jumped on her.

He said,

j you ainft nothing1 but an old bag, are you?*

% 1 1 , I didnft

do nothing about that fcause as a matter of fact, when she
gets that wrapper on, she don* t exactly look like Cleopatra,
anyway.

Hut then, by jiminies, he started in on the Treasury
#•
m
Department* That was too much for me, so I let him have it.
If

tqu

are inclined to lender whv the Revenue Service

does not rush forward m t h a defense of itself every time
*

some allegation of laxity or favoritism is made, let me re­
mind you that disclosures of individual income tax returns
and related records may, under the law, be made only through
court proceedings or under certain conditions to committees
of Congress.
Public cooperation, confident and sustained, with the
Revenue Service, keeps our Federal tax system working.

I

Y3

- :
~ 7 ~

The "square shooters** among taxpayers are entitled to
know that they id 11 pay only their fair share of the nec­
essary expense of Government services and protection«

They

are entitled to know that the proper attention m 11 he paid
to those who try deliberately to dodge their tax responsibi­
lities*

If in some cases proper attention means the threat

or imposition of severe criminal penalties, then the honest
taxpayers must know that those penalties are being enforced*

X

i

And here let me urge on you an inquiring mind toward

III

any aspersions on the Revenue Service which you may chance
to hear*

Before vou allow your confidence in the efficiency

and the integrity of the Service to be shaken, let me urge
you to call for more than blanket accusations and vague
implications against this vitally important arm of your

rovemment*

I want

to

tell

is illustrative

of

vou

a story t heard the other day which

the way

I

feel about the Treasury*

It is the story of a young farmer who assaulted a
*

tramp with a stick of cordwood and wound up in jail*

His

lawyer finally cause to see him and asked, *Ji®, how did
vou come to hit this fellow?
him*

You know, you almost killed

He is in the hospital now and may not live*

Whatever

....... .

.. -■

In general* this salf-assessmaat, Toluatary p a y a n t
system works pretty wall*

IterXy all Americans h a w a stase

of responsibility for the c o n o n good* and it impels them to
try to be honest about their t a payments*

Most mistakes in

returns are honest ones* with nothing deliberate about them*

5

Commissioner of Internal Revenue and instituted by
*

United States Attorneys*

Let mo road v m

i2sm^FHere is another list which we handed to the Kefauver
Committee —

34 closely typed pages, this one —

giving

factual smsrtaries of some of the representative cases prose-■

-a»*

euted during the fiscal year 1946 or later*

J

These, I repeat,

were cases in which tax evaders allegedly derived their in­
come from such criminal enterprises as gambling, the numbers
racket, lotteries, slot machines, extortion, abortion mills,
graft and corruption, and vice.
%

I§B§}1

Does the Revenue Herr ice really make it hot for tax
evaders of the gambler and racketeer kind?
you have a pretty conclusive answer.

In these documents

?es, it doe si

Tr?e have in this country a self-assessment, voluntary
payment system of income taxation*

Congress established that

system because it accords wL th the American concept of a
maximum of individual responsibility and a minimum of
Covemment supervision*

It is a fixture in our body of law,

laeh individual souares his own return it th the lawfs recuirements as to reportable income, deductions and credits*
«

w e have no restapo to look over the taxpayer*§ shoulder*

OT
* 4

for instance, I do not think we ©an allow the fidelity
with itiieh the Revenue Service administers the income tax
laws to be measured solely in terms of the number of criminal
prosecutions it is able to bring, through the Department of
Justice, against the Cohens and the Capones»
Not for one minute, let me assure you, i€ll the Service
ever ease the pressure it maintains against those notorious
boys*

But for one Cohen, one Capone, there are scores of less

widely advertised tax evaders of the same general stripe,
some of them differing little from the "big fellowsw even
in the amounts of money out of which they try to cheat the
Covernment*
-*■

#

Let me show vou what I am talking about.

I have here

a mimeographed list of names o f the sort of people to *hom
I refer.

It is a list thirteen pages long which the Internal

Revenue Service presented to the Kefauver Consaittee on
Tuesday, March 27th*

The names are those of alleged gamblers,

racketeers, and others in the criminal element who have run
afoul of the income tax laws since 1945*
It is merely a nrepresentative list” —

150 names or

thereabouts, from a record of 1,500 cases, involving all
classes of taxpayers from all parts of the country, in
which criminal prosecutions were recommended by the

And this may surprise you#

If you think those oases

of which you have been hearing lately are highly unusual
and out of the ordinary, you are mistaken#

They are not#

The Treasury Department *s Internal Revenue Service turns up
oases of this nature year after year#

Long and painstaking

Investigations are completed, charges are filed or Indictments
returned, and fines or prison sentences or both are imposed*
If the cases happen to reach the charge-filing stage while
some Important public inquiry, such as that of the Kefauver
Committee, is under way, then they rate headlines#
I am glad indeed that this country has had the benefit of
the Kefauver Committee’s work#

The committee’s program has

been of peculiar interest to me because I am the Treasury
official designated by Secretary Snyder to supervise the
activities of the Department’s six law enforcement agencies#
The Treasury sought to give —

and I think did give —

to the Kefauver Committee the fullest measure of cooperation*
Certainly the coimaittee was entitled to nothing less than that*
As to income tax affairs, however, I am concerned lest
misconceptions should gain currency in connection with such
discussions and disclosures*

I think we must be sure that tne

conclusions we reach are in correct perspective and reflect a
proper emphasis*

Today we are all giving much thought to the resources
on which we rely for defense, and Mobile rates very high
among the bastions of production and transportation which
dot our coastlines•
Tonight I bring to you from Washington a report on
another aspect of American strength and American defense*
It is a report on a significant phase of that subject of
universal interest and concern —

federal taxes.

It is not, let me say at the outset, a report on tax
rates*

The matter of rates is now before Congress*

What

I shall talk about tonight is even more important than rates,
at least so far as basic and long-range considerations go.
It is my purpose to remind you of the salient characteristics
on which depend the whole vigor and power of the Federal tax
system, and tell you what your Government is doing to protect
that system from being undermined by the activities of certain
classes of human termites abroad in the land.
Tou have heard news lately about the relations between
tne Treasury Department and some of these underworld
characters; news of Ralph Capone being arrested at Chicago,
of Mickey Cohen being indicted at Los Angeles, and of various
similar happenings.

ET

It is an honor to address this gathering of members of
the Independent Bankers Association.

I am sure every one of

you shares my happiness that for tonight’s occasion you are
convened in this splendid Southern city.

An unerring destiny

long ago endowed Mobile with just about everything to produce
a community that is at once beautiful and vital, pleasant and
industrious, restful and animated.
Born and educated a New Yorker, I must confess that I am
not yet completely familiar with all the details of the Mobile
formula for city-building.

But I needed no more than my first

acquaintance with this city some fifteen years ago, when I ad­
dressed a meeting of the Alabama League of Municipalities in
this very room, to be prepared to recommend that formula
strongly wherever I may go.

Since then I have married one of

Alabama’s fairest, Emily Ligon of Montgomery, and with justifi<"the home of Mrjt* Foleyls, parents, the late General and Mrs. Ro
ab 1e pTiuer x am happy to relate th nfjlflrw».flnljipNi 'n m mTlrNFir F. Li
last January
MMjPoriiy'Jtoistxyxxx became the new Governor’s mansion of this
great State.
Many areas of the South have stepped out in front in
recent years in planning and carrying through improvement
programs.

Mobile’s great wateij^ront development is particularly

notable in this respect, and is a most impressive tribute to
the initiative, pride and civic spirit of its people.

74
TREASURY DEPARTMENT
Washington

The following address by Under Secretary of
the Treasury Edward H. Foley, before the
Independent Bankers Association at the
Admiral Semmes Hotel, Mobile, Alabama, is
scheduled for delivery at 8:00 P.M,» C»S,T,
Tuesday» April 10» li?51» and Is" for release
at that time.

It is an honor to address this gathering of members of the Independent
Bankers Association. I am sure every one of you shares my happiness that
for tonight*s occasion you are convened in this splendid Southern city.
An unerring destiny long ago endowed Mobile with just about everything to
produce a community that is at once beautiful and vital, pleasant and
industrious, restful and animated.
Born and educated a New Yorker, I must confess that I am not yet
completely familiar with all the details of the Mobile formula for city«»
building. But I needed no more than my first acquaintance with this city
some fifteen years ago, when I addressed a meeting of the Alabama League
of Municipalities in this very room, to be prepared to recommend that
formula strongly wherever I may go. Since then I have married one of
Alabama*s fairest, Emily Ligon of Montgomery, and with justifiable pride
I am happy to relate that the home of Mrs* Foley*s parents, the late
General and Mrs. Robert F. Ligon, only last January became the new
Governor*s mansion of this great State,
Many areas of the South have stepped out in front in recent years
in planning and carrying through improvement programs. Mobile*s great
water front development is particularly notable in this respect, and is
a most impressive tribute to the initiative, pride and civic spirit of
its people.
Today we are all giving much thought to the resources on which we
rely for defense, and Mobile rates very high among the bastions of production and transportation which dot our coastlines.
Tonight I bring to you from Washington a report on another aspect
of American strength and American defense. It is a report on a significant
phase of that subject of universal interest and concern — federal taxes.
It is not, let me
matter of rates is now
is even more important
considerations go. It
istics on which depend

S-2655

say at the outset, a report on tax rates. The
before Congress. What I shall talk about tonight
than rates, at least so far as basic and long-range
is my purpose to remind you of the salient character­
the whole vigor and power of the Federal tax

75
-

2

-

system, and tell you what your Government is doing to protect that system
from being undermined by the activities of certain classes of human
termites abroad in the land.
\

You have heard news lately about the relations between the Treasury
Department and some of these underworld characters^ news of Ralph Capone
being arrested at Chicago, of Mickey Cohen being indicted at Los Angeles,
and of various similar happenings*
And this may surprise you. If you think those cases of which you
have been hearing lately are highly unusual and out of the ordinary, you
are mistaken. They are not. The Treasury Departments Internal Revenue
Service turns up cases of this nature year after year. Long and painstaking
investigations are completed, charges are filed or indictments returned,
and fines or prison sentences or both are imposed. If the cases happen
to reach the charge-filing stage while some important public inquiry,
such as that of the Kefauver Committee, is under way, then they rate head­
lines.
I
am glad indeed that this country has had the benefit of the
Kefauver Committees work. The Committees program has been of peculiar
interest to me because I am the Treasury official designated by Secretary
Snyder to supervise the activities of the Departments six law enforcement
agencies.
The Treasury sought to give — and I think did give — to the Kefauver
Committee the fullest measure of cooperation. Certainly the committee
was entitled to nothing less than that.
As to income tax affairs, however, I am concerned lest misconceptions
should gain currency in connection with such discussions and disclosures.
I think we must be sure that the conclusions we reach are in correct
perspective and reflect a proper emphasis.
For instance, I do not think we can allow the fidelity with which
the Revenue Service administers the income tax laws to be measured solely
in terms of the number of criminal prosecutions it is able to bring,
through the Department of Justice, against the Cohens and the Capones.
Not for one minute, let me assure you, will the Service ever ease
the pressure it maintains against those notorious boys. But for one Cohen,
one Capone, there are scores of less widely advertised tax evaders of
the same general stripe, some of them differing little from the ”big
fellows” even in the amounts of money out of which they try to cheat the
Government.

76
- 3 -

Let me show you what I am talking about* I have here a mimeographed
list of names of the sort of people to whom I refer. It is a list
thirteen pages long which the Internal Revenue Service presented to the
Kefauver Committee on Tuesday, March 27th, The names are those of
alleged gamblers, racketeers, and others in the criminal element who have
run afoul of the income tax laws since 1 9k$*
It is merely a "representative ¿list* —
from a record of 1,500 cases, involving all
all parts of the country, in which criminal
by the Commissioner of Internal Revenue and
Attorneys.

* 150 names or thereabouts,
classes of taxpayers from
prosecutions were recommended
instituted by United States

Here is another list which we handed to the Kefauver Committee ••
giving factual summaries of some of
the representative cases prosecuted during the fiscal year 1 9h& or later.
These, I repeat, were cases in which tax evaders allegedly derived their
income from such criminal enterprises as gambling, the numbers racket,
lotteries, slot machines, extortion, abortion mills, graft and corruption,
and vice.
3k closely typed pages, this one —

Does the Revenue Service really make it hot for tax evaders of the
gambler and racketeer kind? In these documents you have a pretty con*»
elusive answer. Yes, it doesl
We have in this country a self-assessment, voluntary payment system
of income taxation. Congress established that system because it accords
with the American concept of maximum of individual responsibility and
a minimum of Government supervision, It is a fixture in our body of law.
Each individual squares his own return with the law*s requirements as to
reportable income, deductions and credits. We have no Gestapo to look
over the taxpayer*s shoulder.
In general, this self-assessment, voluntary payment system works
pretty well. Nearly all Americans have a sense of responsibility for the
common good, and it impels them to try to be honest about their tax
payments. Most mistakes in returns are honest ones, with nothing
deliberate about them.
The "square shooters" among taxpayers are entitled to know that
they will pay only their fair share of the necessary expense of Government
services and protection, They art entitled to know that the proper
attention will be paid to those who try deliberately to dodge their tax
responsibilities. If in some cases proper attention means the threat or
imposition of severe criminal penalties, then the honest taxpayers must
know that those penalties are being enforced.

77
- u .

And here let me urge on you an inquiring mind toward any aspersions
on the Revenue Service which you may chance to hear. Before you allow
your confidence in the efficiency and the intergrity of the Service to be
shaken, let me urge you to call for more than blanket accusations and
vague implications against this vitally important arm of your Government,
I want to tell you a story I heard the other day which is illustrative
of the way I feel about the Treasury,
It is the story of a young farmer who assaulted a tramp with a stick
of cordwood and wound up in jail. His lawyer finally came to see him
and asked, ”Jim, hew did you come to hit this fellow? You know, you
almost killed him. He is in the hospital now and may not live. Whatever
made you do it?”
•'Well, Mr, Smith”, said Jim, ”you see it was like this. This feller
came by the farm the other night, and I invited him in for supper. Right
away he started criticizing the furniture. Well, I let that pass because
our furniture ain’t any great shakes at best. Then he teed off on the
food. Well, I let that pass, too. A lot of times my wife’s cooking leaves
a little something to be desired. Then my wife came in out of the kitchen,
and he jumped on her. He said, ’Say, you ain’t nothin’ but an old bag,
are you?’ Well, I didn’t do nothing about that ’cause as a matter of
fact, when she gets that wrapper on, she don’t exactly look like Cleopatra,
anyway. But then, by jiminies, he started in on the Treasury Department*
That was too much for me, so I let him have it.”
If you are inclined to wonder why the Revenue Service does not rush
forward with a defense of itself every time some allegation of laxity or
favoritism is made, let me remind you that disclosures of individual
income tax returns and related records may, under the law, be made only
through court proceedings or under certain conditions to committees of
Congress,
Public cooperation, confident and sustained, with the Revenue Service,
keeps our Federal tax system working. I think that you and I and all
the other individuals who make up the public, must guard carefully against
contributing in an ill-considered way to the weakening of the cooperation.
Let me tell you with the utmost sincerity that your confidence in
the Revenue Service is fully merited. Its personnel enforces the tax
laws vigorously, honestly and impartially.
During the years of my association with the Treasury Department in
various capacities from General Counsel to Under Secretary, the number
of employees of the Internal Revenue Service who have betrayed their trust
has been infinitesimal. And the departure of these very, very few from
the path of rectitude has, in every case that I recall, been discovered
through the pride and precautions of the Service itself.

78
— 5 **

You perhaps read in recent months of a blast of criticism against
the Revenue Service issued by the California Crime Commission* When the
blast was reduced, through careful analysis, to factual elements, it involved
asserted misdeeds of two or three deputies in the California and Nevada
collection offices* We stated publicly, by way of comment, that Treasury
investigations into these misdeeds had been under way for some time* Since
then, on the evidence our investigators obtained, two employees have been
fired, and one of them and a former employee have been indicted.
I don't want to burden you with figures*
helpful.

But perhaps a few will be

The Revenue Service has at present 55*500 employees.
It administers not only the individual income tax, but 78 other
Federal tax levies.
The tax returns which must be received and processed each year number
90 million.
In addition, about 120 million related documents, such as records
of income tax withholdings, must be received and processed.
Last year the Revenue Service collected nearly$39 billion. This
fiscal year the total will rise to almost $1*8 billion. In the fiscal year
1952 it probably will reach $60 billion.
The annual costs of the Service total about $21*6 million, so that
the expense of collecting each $100 of revenue is about 59 cents.
But that 59 cents per $100 is an average figure. What keeps it so
low is the fact that 90 percent of the taxes are paid voluntarily by
those honest and straightforward citizens to whom I referred earlier.
It takes half of the entire Revenue Service personnel to collect the
other 10 percent of the Federal taxes. This half — 26,000 persons ••
is assigned to what we call "front line enforcement", beginning with the
sifting out of returns which appear deserving of close scrutiny, and
proceeding through the whole catalog of enforcement work right up to the
handling of the cases against the Cohens and the Gapones.
When an enforcement case bears the earmarks of fraud, it is taken
over by the special agents of the Revenue Service Intelligence, Unit.
During 1950, 311|. cases involving racketeers and gamblers received the
attention of the Intelligence Unit investigators. They constituted
more than 12 percent of all fraud investigations which that Unit con­
ducted. And they turned up $21* million in additional taxes and
penalties proposed for assessment. They also resulted in 1932
recommendations for criminal prosecutions.

79
-

6

-

A new step has just been taken to render front line enforcement
still more effective. By direction of Secretary Snyder, the Revenue
Service is now in process of organizing a Special Fraud Section, made
up of investigators who have shown superior skill at breaking through
the false financial fronts of the "big time" tax evaders. This Section
will devote its entire time to inquiries into tax-dodging by gamblers,
racketeers and others of the confirmed criminal stripe.
I am willing to prophesy that the work of this Special Fraud Section
will be productive of many violent headaches for racketeers and gangsters
in the days to come.
But I distinctly do not want to prophesy that the activities of
the Special Fraud Section, or indeed any other portion of the Revenue
Service, will obviate the necessity for greater vigilance on the part
of local law enforcement authorities against all manner of racketeer
and gangster criminality.
Almost every day, some writer or speaker implies publicly that
the Revenue Service should bear general law enforcement responsibilities,
and is in fact to blamefor the very existence of gambling and racketeer­
ing. For this attitude there is no basis in present public policy as
expressed in the Federal statutes* Nor is there any basis for it in the
Serviced appropriations and its manpower situation#
If State and local governments are to remain impotent against the
leaders of organized crime, then the question presents itself whether
we should enact Federal laws aimed directly, or as directly as constitutional
limitations will permit, at the basic crimes of which the hoodlums are
guilty. There is little logic in reliance on the Federal tax laws for
the general punishment of State and local gambling and similar crimes,
as distinguished from the punishment of the crime of Federal income tax
evasion.
Even for more effective Federal tax enforcement, our laws have
some shortcomings. We have our problems of income tax law enforcement
just as the Kefauver Committee found itself facing problems of how to
elicit information from recalcitrant witnesses. And the Kefauver
Committee, of course, had all the power of Congress behind it to punish
contemptous and lying witnesses.
The very nature of our voluntary self-assessment tax system requires
a specially diligent effort to make it work with respect to those who
derive their income from illegal enterprises. They are not the sort of
people whose records can be relied upon, and our agents are not so naive
as to think they can be. This forces our investigators many times to put
in long months of work gathering the most difficult varieties of evidence
to create a net worbh case# Sometimes the job is an almost impossible one.

80
- 7Suggestions for revision of the tax statutes are now being studied
for the Congress by a subcommittee of the House Ways and Means Committee.
These suggestions would fortify the tax. code against evasions of the
types of which I have spoken. Generally, they would give our agents a
stronger hand in dealing with willful cases of improper returns and
improper tax records.
In closing, I want to repeat some remarks by Secretary Snyder which
I had the privilege of reading for him before the Kefauver Committee
at the last of its public sessions, a short time ago. The Secretary said:
"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.
uWe 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 taxpayer to accept that assurance as an established fact.
Bringing chiselers to justice has always been the Serviced
determined policy, and continues to be its pledge."

0O0

- 3ALFHA

any State, or any of the possessions of the United States, or by any local tax­
ing authority.

For purposes of taxation the amount of discount at which

Treasury bills are originally sold by the United States shall be considered to
be interest.

Under Sections U2 and 117 (a) (1) of the Internal Revenue Code,

as amended by Section 11$ of the Revenue Act of 19Ul, the amount of discount at
which bills issued hereunder are sold shall not be considered to accrue until
such bills shall be sold, redeemed or otherwise disposed of, and such bills are
excluded from consideration as capital assets.

Accordingly, the owner of

Treasury bills (other than life insurance companies) issued hereunder need in­
clude in his income tax return only the difference between the price paid for
such bills, whether on original issue or on subsequent purchase, and the amount
actually received either upon sale or redemption at maturity during the taxable
year for which the return is made, as ordinary gain or loss.
Treasury Department Circular No. 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

-

ALPHA

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 m i l be opened at the Federal
Reserve Banks and Branches, following which public announcement vd.ll 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,
P

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

April 19. 1951

* in cash or other immediately avail-j |

able funds or in a like face amount of Treasury bills maturing April 19, 1951»
Cash and exchange tenders will receive equal treatment.

I

Cash adjustments will be I

made for differences between the par value of maturing bills accepted in exchange I
and the issue price of the new bills.

.|

jThe income derived from Treasury bills, whether interest or gain from the
sale or other disposition of the bills, shall not have any exemption, as such,
and loss from the sale or other disposition of Treasury bills shall not have any
special treatment, as such, under the Internal Revenue Code, or laws amendatory
or supplementary thereto.
gift

The bills shall be subject to estate, inheritance,

or other excise taxes, whether Federal or State, but shall be exempt from

all taxation now or hereafter imposed on the principal or interest thereof by

Exhibit:;;!.
ALPHA'

trmsiibmbîweeot
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Thursday, April 12, 1951_______ •

IPs£"""

The Secretary of the Treasury, by this public notice, invites tenders for
$1,000,000,000

, or thereabouts, of

91

in exchange for Treasury bills maturing

-day Treasury bills, for cash and
April 19. 1951

to be issued on

appf

a discount basis under competitive and non-competitive bidding as hereinafter
provided.
will mature
interest.

The bills of this series will be dated

April 3 ^ ^ 1 951

»

July 19, 1991_____ , when the face amount will be payable without
They -will 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

closing hour, two o ’clock p.nu, Eastern Standard tinto,Monday, A™ - 1! l6 . 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 thi*ee
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 will
be supplied by Federal Reserve Banks or Branches on application therefor.
Others than banking institutions will not be permitted to submit tenders
except for their own account.

Tenders will be received without deposit from

incorporated banks and trust companies and from responsible and recognized
dealers in investment securities.

Tenders from others must be accompanied

by payment of 2 percent of the face amount of Treasury bills applied for,

TREASURY DEPARTMENT
Information Service

WASHINGTON, D .C .
84

release

morning

,
I95lv - ;

newspapers

Thursday, A p r i l 12,

S-2 6 5 6

The S e c r e t a r y of the Treasury, b y this p u b l i c notice, invites
tenders for $1-,0 0 0 ■0 0 0 ,0 0 0 , or t h e r e abouts, of 91-clay'Treasury
bills/ for. c ash 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
April 19, 1951, to be i s s u e d on a d i s c o u n t b a sis u n d e r c o m p e t i t i v e
and non-.competitive b i d d i n g as h e r e i n a f t e r pr o v i d e d .
The bills of
this series w i l l be d a t e d A p r i l 19, 1951, an d w i l l m a t u r e J u l y 1 9 ,
1951, w h e n the face amount w i l l be p a y a b l e w i t h o u t interest.
They
yill.be i s s u e d in b e a r e r form only, a n d in d e n o m i n a t i o n s of ¿ 1 ,0 0 0 ,
$5,000, $ 1 0 ,0 0 0 , $ 1 0 0 ,0 0 0 , $ 5 0 0 ,0 0 0 , and $ 1 ,0 0 0 ,0 0 0 ( m a t u r i t y value).
Tenders w i l l be r e c e i v e d at F e d e r a l R e s e r v e B a n k s and B r a n c h e s
up to the c l o s i n g hour, two o ’c l o c k p.m., E a s t e r n S t a n d a r d time
Monday, A p r i l 16, 1951.
Te n d e r s w i l l not be r e c e i v e d at the
Treasury D e p a r t m e n t , W a s h i n g t o n .
E a c h t e nder m u s t be. for a n e v e n
multiple of $ 1 ,0 0 0 , a nd in the case of c o m p e t i t i v e tenders the p r ice
offered m u s t be e x p r e s s e d on the b a sis of 1 0 0 , w i t h not m o r e than,
three., decimals, e. g., 99-925.
F r a c t i o n s m a y not. be used.
It is
urged that tenders be m a d e on the p r i n t e d forms a nd f o r w a r d e d in
the special e n v e l o p e s vhffeh. w i l l be s u p p l i e d ' b y F e d e r a l R e s e r v e
Banks or B r a n c h e s on a p p l i c a t i o n therefor.
Others t h a n b a n k i n g i n s t i t u t i o n s w i l l n ot be p e r m i t t e d to
submit tenders e x c e p t for t h e i r o w n a c c o u n t . T e n d e r s w i l l be
received 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 nks and trust c o m p a n i e s
end from r e s p o n s i b l e a nd r e c o g n i z e d d e a l e r s in i n v e s t m e n t s e c u r i t i e s .
Tenders from others m u s t be a c c o m p a n i e d b y p a y m e n t of 2 p e r c e n t of
the face a m o u n t of T r e a s u r y b i l l s a p p l i e d for, u n l e s s the tenders
are a c c o mpanied b y a n e x p ress g u a r a n t y of p a y m e n t b y a n i n ­
corporated 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, tenders w i l l be o p e n e d at
trie Federal R e s e r v e B a n k s a nd B r a n c h e s , f o l l o w i n g w h i c h p u b l i c
announcement w i l l be m a d e b y the S e c r e t a r y of the T r e a s u r y of the
amount and p r i c e range of a c c e p t e d bids.
T h ose s u b m i t t i n g tenders
will be a d v i s e d of the a c c e p t a n c e or r e j e c t i o n thereof.
The
secretary of the T r e a s u r y e x p r e s s l y r e s e r v e s the r i g h t to a c c e p t or
eject an y or al l tenders, in w h o l e or in part, an d h is a c t i o n in
y such re s p e c t shall be final.
S u b j e c t to these r e s e r v a t i o n s ,
n-competitive t e n ders for $2 0 0 ,0 0 0 or less w i t h o u t s t a t e d p r i c e
om any one b i d d e r w i l l b e 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 dec i m a l s ) of a c c e p t e d c o m p e t i t i v e bids.
S e t t l e m e n t for
a c c e p t e d t e n ders in a c c o r d a n c e w i t h the b i d s m u s t be m a d e or
c o m p l e t e d at the F e d e r a l R e s e r v e B a n k on A p r i l 19, 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 a m o u n t of
T r e a s u r y b i lls m a t u r i n g A p r i l 19, 1951.
Cash a n d e x c h a n g e tenders
w i l l r e c e i v e e q u a l treatment.
C ash a d j u s t m e n t s w i l l be m a d e for
d i f f e r e n c e s b e t w e e n the p a r value of m a t u r i n g ' b i l l s a c c e p t e d in
e x c h a n g e and the issue p r i c e of the n e w bills.
The income d e r i v e d f r o m T r e a s u r y bills, w h e t h e r i n t e r e s t or
g a i n f r o m the sale or o t h e r d i s p o s i t i o n of the bills, s h all not
h a v e a n y exemption, as such, an d loss f r o m the sale or o t h e r
d i s p o s i t i o n of T r e a s u r y b i lls shall not h a v e a n y s p e c i a l treatment,
as such, u n d e r the I n t e r n a l R e v e n u e Code, or laws a m e n d a t o r y or
s u p p l e m e n t a r y thereto.
The b i l l s shall be s u b j e c t to estate,
i n h e r i t a n c e , gift or o t h e r e x c i s e taxes, w h e t h e r F e d e r a l or State,
b u t shall be e x e m p t from a ll t a x a t i o n n o w or, h e r e a f t e r i m p o s e d 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, or a n y of the
p o s s e s s i o n s of the U n i t e d States, or b y a n y local t a x i n g authority.
F o r p u r p o s e s of t a x a t i o n the a m o u n t of d i s c o u n t at w h i c h T r e a s u r y
b i l l s are o r i g i n a l l y sold b y the U n i t e d States s h a l l be considered
to be interest.
U n d e r S e c tions 42 and 117 (a) (1) of the Internal
R e v e n u e Code, as a m e n d e d b y S e c t i o n 115 of the R e v e n u e A c t of 1941,
the a m o u n t of d i s c o u n t at w h i c h b i l l s i s s u e d h e r e u n d e r are sold ' .
s h a l l . n o t be c o n s i d e r e d to a c crue u n t i l such b i l l s s h a l l be sold,
r e d e e m e d or o t h e r w i s e d i s p o s e d of, a nd s u c h b i l l s are e x c l u d e d
f r o m c o n s i d e r a t i o n as c a p i t a l assets.
A c c o r d i n g l y , the o w n e r of
T r e a s u r y b i l l s (other t han life i n s u r a n c e c o m p anies) i s s u e d h e r e ­
u n d e r n e e d i n c l u d e in his income tax r e t u r n o n l y the d i f f e r e n c e
b e t w e e n the p r i c e p a i d for such bills, w h e t h e r on o r i g i n a l issue
or on s u b s e q u e n t purchase, a nd the a m o u n t a c t u a l l y r e c e i v e d either
u p o n sale or r e d e m p t i o n at m a t u r i t y d u r i n g the taxable y e a r for
w h i c h the r e t u r n is. made, as o r d i n a r y g a i n or loss.
T r e a s u r y D e p a r t m e n t C i r c u l a r No. 4l8, as amended, a n d this
notice, p r e s c r i b e the' terms of the T r e a s u r y bills an d g o v e r n the
c o n d i t i o n s of their issue.
Copies of the c i r c u l a r m a y be obtained
f r o m a n y F e d e r a l R e s e r v e B a n k or Branch.

oOo

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, 19Ul, as modified by the President’s proclamation of April 13, 191*2,
for the 12 months commencing M ay 29, 19 5Q, as follows:

TSheat flour, semolina,
crushed or cracked
wheat, and similar
wheat products
Established :
Imports
Quota
: May 29, 1950,
•
• to Mar. 31, 1<
(Pounds)
(Pounds)

Wheat
Country
of
Origin

Imports
Established :
Quota
:May 29, 19f>0, to
sMar eh 31, 1951
(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
-

3,815,000
2k ,000
13,000
13,000
8,000
75,000
1,000
5,000
5,000
1,00Q
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

795,000
—

—
-

—
—
—

—
'
—

_
—
_

mm
M

-

-

n

-

—

*•

-

•a*

800,000

-

3,815,000
9,1*15
180
—
122
-■
2,295
882
-

33
**
■■

—

-

—

—

—

—

-

§j
■

•

—

—

—

795,000

—

1*,000,0®

3,827,927

86

TREASURY DEPARTMENT
Washington
IMMEDIATE RELEASE,

Wednesday, April 11, 1951

S-2697

The Bureau of Customs announced today preliminary figures showing the
quantities of wheat and wheat flour entered, or withdrawn from warehouse, for
consumption under the import quotas established in the Presidents proclamation
of May 28, 19lil, as modified by the Presidents proclamation ef April 13, 19^2,
for the 12 months commencing May 29, 1990, as follows:

Wheat
Country
of
Origin

Established. :
Imports
Quota
«May 29, 19$0, to
:March 31, 1951

Canada
795,000
China
Hungary *
loiig Kong
Japan
United Kingdom
100
Australia
Germany
100
Syria
100
New Zealand
Chile
Netherlands
100
Argentina
2,000
Italy
100
Cuba
France
1,000
Greece
Mexico
100
Panama
Uruguay
Poland and Danzig
Sweden
Yugoslavia
Norway
Canary Islands
Rumania
1,000
Guatemala
100
Brazil
100
Union of Soviet
Socialist Republics 100
Belgium
100
800,000
-

-

m.

795,000

-

-

-

-

-

—

-

_

-

mm

mm

mm

-

-

-

-

Wheat flour, semolina,
crushed or cracked
wheat, and similar
wheat products
Established :
Imports
Quota
• May 29, 1990,
: to Mar* 31, 1991
(Pounds)
(Pounds)
3,819,000
21*,000
13,000
13,000
8,000
75,000
1,000
9,000
9,000
1,000
1,000
1,000

3,815,000
9,1*15

iU,ooo

2,2 95
882

2,000
12,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000

-

795,000

—

180
•
—
-

122
—

«
~m

a*
«
—
33

—
-

-

1,000,000

3,827,927

-

2

-

COTTON WASTES
(In punnets)
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

: Established
: TOTAL QUOTA

United Kingdom ...... ..
Canada ...............
France ..............
British India .......
Netherlands .........
Switzerland .........
Belgium ..............
J a p a n ...... .........
C h i n a ........... ....
Egypt .... ...........
C u b a ..... ...........
Germany .............
Italy ...............

Imports
1/
: Total imports
: Established :
: Sept. 20, 1950, to ;
33-1/3* of s Sept. 20, 1950,
: March 31, 1951
: Total Quota ; to March 31, 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_________

1/ Included in total imports, column 2.

Prepared by the Bureau of Customs

1,441,152
—

75,807
n

;

-

1,854
—
24,156
—

22,747
14,796
12,853
-

1,441,152
68,155
-

1,854
-

-

—

25,443
7,088

24,156

1.599,886

1,535,317

—

iwawiHVdaa AHxisv a n i

Cs

-

IMMEDIATE RELEASE
A p r il IQ , 1951

C
¿J

l

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 U n t e r s) (in pounds)

Cotton under 1-1/8 inches other than rough or harsh under 3/V1
Imports Sept. 20, 1950, to March 31« 1951« inclusive
Country of Origin

Established Quota

Egypt and the AngloEgyptian Sudan ....
P e r u .....
British I n d i a ..... .
C h i n a .... ..........
M e x i c o .... .
B r a z i l .... ...... ...
Union of Soviet
Socialist Republics
A r g e n t i n a ..... .
H a i t i ...... *.......
Ecuador .............

Imports

-

783,816
247,952
2,003,483
1,370,791
8,883,259
618,723

162,325
—
—
37,669
404,532

475,124
5,203
237
9,333

_
—
—
—

Country of Origin

Established Quota

Imports

752
871
124
195
2,240
71,388
21,321
5,377
16,004
689
—

-

Honduras ....... ......
Paraguay .............
Colombia .... .........
Iraq ......;..........
British East Africa ...
Netherlands E. Indies
Barbados ..i..... .....
l/0ther British W. Indies
Nigeria ... s...........
2/0ther British W . Africa
¿/Other French Africa ...
Algeria and Tunisia ...

—

—
—
—
**
—

—
—
-

1/ Other than Barbados, Bermuda, Jamaica, Trinidad, and Tobago.
2/ Other than Gold Coast and Nigeria.
2/ Other than Algeria, Tunisia, and Madagascar.
Cotton, harsh or rough, of less than 3/4*
Imports Sept. 20, 1950< to March 31» 1951

Cotton 1-1/8* or more, but less than 1-11/16*
Imports Feb, 1, 1951,
March 3l, 1951

Established Quota (Global)

Established Quota (Global)

70, 000,000

Imports
5,825,687

45*656,420

Imports
Quota filled

TREASURY DEPARTMENT
Washington
IMMEDIATE RELEASE

'/

-

*

Wednesday April II, 195>1

S-2628

Preliminary data on imports for consumption of cotton and cotton waste chargeable to the quotas
established by the President*s Proclamation of September 2, 1939, as amended,
COTTON (other than linters) (in pounds)

■

Cotton under 1-1/8 inches other than rough or harsh under 3/hn >
Imports Sept, 20, 1920, to March 31, 1951, inclusive
-■
Country of Otrigin ?
Egypt and the AngloEgyptian Sudan »..•
P»Tm ...... ...______
British India ..•••••
China ««••••••• •«• •..
Mexico •#••••••»••#•#
Brazil •«•••••«»••••.
Union of Soviet
Socialist Republics
Argentina ••••••••••.
Haiti •••••••••••»••.
Ecuador ............

Established Quota

783,8X6
21(7,952
2,003,1(83
X,370,791
■‘8,883,259
618,723
1(75,12i(
5,203
237
9,333

162,322
3 7,6 6 9
l(0ti,53?
**
-

Imports

Honduras *••••••••»•«.••.
( ,.7 5 2
Pflrs^usy *'••••,#_•• ••••#••
871
Colombia ••••••••••••••.
- 121*
Iraq'
195
■
* 2,21*0
British East Africa
Netherlands E. Indies .. : ;.. 7 1,3 8 8
B&rl^&dos ••••• •••«l/0ther British ¥• Indies |
21,321
Nigeria ....•VV...#.•
5 ,3 7 7
16,001*
2/0ther British ’¥* ‘Africa,
*5/0ther'French Africa •••• . . .
689
” Algeria and Tunisia .... .....
-

1/ Other than Barbados, Bermuda, Jamaica, Trinidad, and Tobago.
J[/ Other than Gold Coast and Nigeria.
; .....
3/ Other than Algeria, Tunisia,►and Madagascar.

Established Quota

Country of Origin

Imports

.

;• ;
•. .
.......

Established Quota (Global)

Established Quota (Global)

S,822,687

tm
•
mm

-

* ....
Cotton i~l/8n or mors,, but less than 1—Il/l6w
Imports Feb. 1, 1921, to Inarch 31» 1921

70,000,000

m
-

......

Cotton, harsh or rough, of less than 3/hn
Imports "Sept; 207“1920, "to "March 31,~T95l
Imports

-

1*5,626,120

Imports
Quota filled
O o

.

-

2

-

, COTTON HASTES
(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, 1 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:

\".**"*
T X Established
Country of Origin
: TOTAL OUOTA
.. \*’ ‘i.*

: Total imports
:
: Sept* 20, 1950, to :
: March 31» 1951
:

United Kingdom *••
!*,323,1*57
239,690
Canada •• • •*■*• •*«•««»«••
227,1*20
France ••»*«***»‘»*#**«**
British India •.........
69,627
68,2tò
Netherlands .•♦. ........
Switzerland •••** *. .•• ••
hi, 3 88
Belgium •.............•.
38,569
Jsp3n ••#*••••«•».«..*«•
31*1,535 r
17,322
China .........
8,135,
E g y p t ....... ..........
6,5hh
Cuba •«••.....•....... .
76,329
Germany •••**••»••••••••
’
21,263
lioly •••.••••.•*«•.••** .
:;_

■
' v-.
5,1*82,509

1/

Included in total imports, column 2.

Prepared by the Bureau of Customs

1,1*1*1,162
107,191
68,155
67,200
-

Imports
ly
Established :
33-1/3/* of s Sept* 20, 1950,
Total Quota : to March 31, 1951
1,1*1*1,152
75,807
22,71*7
11*,796
12,853
-

,

—

1,851*
- .'
21*,156
1,709,708

: -

mm
- '
25,1*1*3
7,088
1,599,886

1,1*1*1,152
68,155.
-•
1,851*
—
21*,156
—
1,535,317

IMMEDIATE RELEASE

U jti

4 P.r i i ^ > .

—

//
The Bureau of Customs announced today preliminary figures showing the
inports for consumption of commodities on -which quotas were prescribed by
the Philippine Trade Act of 19i|£, from January 1, 1951, to March 31, 195l,
inclusive, as follows:

products of the
Philippines

•
•
: Established Quota
Quantity
:

: Unit of
: Quantity

Imports as of
March 31, 1951

Gross

1^6,203

200,000,000

Number

263,1*29

UU8,000,000

Pound

1*2,379,1*38
2,21*0,172

Buttons .........

850,000

Cigars .........
Coconut oil
Cordage ........

6,000,000

«.

Rice *..........

1,0U0,000

n

(refined ...
l,90l*,000,000

Sugars

Pound
3$0,$9h,69$

(unrefined .
Tobacco .........

6,500,000

Pound

73,900

TREASURY DEPARTMENT
Washington
IMMEDIATE RELEASE

Wednesdayj April 1 1 , 1951

S-2659

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 19^6, from January 1, 195>1> to March 31, 1951*
inclusive, as follows;
•
+

Products of the
Philippines

: Established Quota
;
Quantity

; Unit of
: Quantity

: Imports as of
i March 31, 1951
•
•

Buttons •••••••,»,

850,000

Gross

11*6,203
263,1*29

Cigars

200,000,000

Number

Coconut oil ••••••

U*8,000,000

Pound

1*2,379,1*38

Cordage

6,000,000

tt

2,21*0,172

Rice •••*•••»••£«•

l,0i|0,000

it

-

(refined •••••
Sugars

1,90^,000,000

Pound

(unrefined
Tobacco ••••••••••

350, $91*,695

6,500,000

Pound

73,900

IMMEDIATE RELEASE
IQ, 1951

April

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 31, 1951, inclusive, as follows:

Commodity

period and Quantity

Unit
Imports as of
of
March 31,
Quantity
1951

Whole milk, fresh or
s o u r ................

Calendar year

3,000,000

Gallon

1,008

Cream, fresh or sour ...

Calendar year

1,500,000

Gallon

137

Butter .................

Nov. 1, 1950Mar. 31, 1951

50,000,000

Pound

29,239,808

Pound

a)
Quota filled

150,000,000
60,000,000

Pound
Pound

Quota filled
Quota filled

5 ,000,000

Pound

Fish, fresh or frozen,
filleted, etc., cod,
haddock, hake, pollock,
cusk, and rosefish .•• Calendar year
White or Irish Potatoes:
certified seed ......
other ...............

12 months from
Sept. 15, 1950

Walnuts ................

Calendar year

Petroleum and petroleum
products ......... ..

Calendar year
Venezuela
2,613,137,096
Netherlands
822,6SU,271
Other countries 963,U29,333

(1)

12,Oltf

3,U35,3$8

Gallon 1,37H,U3^,0^
Gallon Quota filled
Gallon
801,152,791

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.

93
THEA.SUHT IEPAHPMÇNT
Washington

IHîEDIATE RELEASE
Wednesday, April 11. 1951

S-2660

The Bureau of Customs announced today preliminaiy figures shoydng the
imports for consumption of comoditi#® within quota limitations provided for
under the General Agreement on Tariffs and Trade, from the beginning of the
quota periods to March 31, 19.51, inclusive as follows :

Commodity

Period and Quantity

Unit
of
Quantity

Imports as of
March 31,
1951

Thole milk, fresh or
SOUti

Calendar year

3,000,000

Gallon

1,008

Cream, fresh or sour 0®®

Calendar year

1,500,000

Gallon

137

Nov« 1, 1950«
■Mar® 31, 1951

50,000,000

Pound

12,047

29,239,308

Pound

(1)
Quota filled

150,000,000
60,000,000

Pound
Pound

Quota filled
Quota filled

5,000,000

Pound

3,435,358

Butter

O O O O O O m O O O O O O O O

>®

Pish, fresh or frozen,
filleted, etc®, cod,
haddock, hake, pollock,
cusk, and rose fish ®0® Calendar year
White or Irish Potatoes:
certified seed ®«®ooo®
Other oooooooooooöoooo

12 months from
Sept, 15, 1950

felnutS oooooooe®9®o®ooo

Calendar year

Petroleum and petroleum
products oooooodoooooj®

Calendar year
Venezuela
2,613,137,096
Netherlands
322,654,271
Other countries 963,429,333

(l)

Gallon
Gallon
Gallon

1,374,436,054
Quota filled
801,152,791

lhe 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«,

j\ Ö

V* u

Q~

EáíEDIATE RgXMSg,

£

,éf

Thursdayj April 12, 1951.

'Bis Secretary of the Treasury today announced the subscription and allotment
figures with respect to the current offering of 2-3/% percent Treasury Bonds,
Investment Series b -1975-30, dated April 1, 1951» open to the holders of 2-1/2
percent Treasury Bonds of 1967-72, dated June 1, 1945, due June 1$, 1972, aid
2-1/2 percent Treasury Bonds of 1967-72, dated November 1$, 1945, due December 15,
1972.
Subscriptions ami allotments imm divided among 'the several Federal Reserve
Districts and the Treasury as follows ;
Federal Reserve
District

June 15 Bonds
Exchanged

Boston
Mew fork
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Treasury
Federal Reserve &
Treasury Accounts

#

TOTAL

s

55i,W *9,ooo
1,892,912,000
268,31*9,500
15k, 91*1,000
91,177,500

li2,?53,ooo
355,361,000
15,598,500
52,036,500
36,982,000
55,190,000
3tó,597,5oo
32,353,500

December 15 Bonds
Exchanged
1

56o.U23.000

2 ,2 1 7 ,5 8 8 ,0 0 0
328,172,500
215,1*37,000
129,198*500
73*271*000
339,01*5,000
55,261*,500
127,302,500
1*3,756,000
116*660,000

2 6 1 ,6 1 3 ,5 0 0
26,921**500

Total
Exchanges
$ 1,111,871,000
Í4,u o ,5oo, óoo
596,522,000
370,378,000
220,376,000
116,021*,000
494,406,000
70,863,000
179,839,000
30,733,000
171,850,000
406,211,000
59,778,000

2,1*63,502,500

3,119,890,500

5,583,393,000

15,^7,702,500

$7,615,01*6,500

113,572,71*9,000

The breakdown of exchanges by investor classes will be made public when this
information is available* "which will probably be in about two weeks.

IMMEDIATE RELEASE,
Thursday, A p r i l 12,

1951.

S-26 6 1

The S e c r e t a r y of the T r e a s u r y t o d a y a n n o u n c e d the s u b s c r i p t i o n
and a l l o t m e n t f i g ures w i t h r e s p e c t to the c u r rent o f f e r i n g of
2-3/4 p e r c e n t T r e a s u r y Bonds, I n v e s t m e n t S e r i e s B - I 9 7 5 -8 0 , d a t e d
April 1, 1951? o p e n to the h o l d e r s of 2 - 1 / 2 p e r c e n t T r e a s u r y B o n d s
of 1967-72, d a t e d June 1, 1945, d ue June 15, I9 7 2 , a nd 2 - 1 / 2 p e r c e n t
Treasury B o n d s of 1 9 6 7 -7 2 , d a ted N o v e m b e r 15, 1 9 4 5 , d ue D e c e m b e r 15
1972.
S u b s c r i p t i o n s a nd a l l o t m e n t s w e r e d i v i d e d a m o n g the
Federal R e s e r v e D i s t r i c t s a nd the T r e a s u r y as follows:
Federal R e s e r v e
District

June 1 5 B o n d s
E x c h a n g e d ____

Boston
Hew York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis

$

Minneapolis
Kansas City
Dallas
San Francisco
Treasury
Federal R e s e r v e &
Treasury A c c o u n t s
TOTAL

551,448,000 $

several

D e c e m b e r 15 B o n d s
Total
«Exchanged____________ E x c h a n g e s
560,423,000

$ 1 ,1 1 1 ,8 7 1 , 0 0 0

1 ,892 ,912,000

2 ,2 1 7 ,5 8 8 , 0 0 0

268.349.500
154.941.000
91.177.500
42.753.000
1 5 5 .3 6 1 .0 0 0
15.598.500
52.036.500

328.172.500
215.437.000
1 2 9 .1 9 8 . 5 0 0
73.271.000
339.045.000
55.264.500

370.378.000
2 2 0 .3 7 6 .0 0 0
116.024.000
494.406.000

127 802.500

179.839.000

55,190,000
144.597.500
32.853.500

261,613,500
26.924.500

171.850.000
406.211.000
59,778,000

2,463,502,500

3,119,890.500

5.583.393.000

$5,957,702,500 $7,615,046,500

$13,572,749,000

3 6 . 9 8 2 . 0 0 0

.
43.756.000
116.
660.000

4.110.500.000

,

5 9 6 5 2 2 ,0 0 0

7 0 , 8 6 3 , 0 0 0

80 ,738,000

The b r e a k d o w n of e x c h a n g e s b y i n v e s t o r c l a s s e s w i l l be m a d e
puoiic w h e n this i n f o r m a t i o n is avai l a b l e , w h i c h w i l l p r o b a b l y be
» about two w e e k s .

0 O0

WAm

% 4

M

x

G-l—

April 9, 1951

TO MR, BAHTEtTi
The following transactions were made In direct and guaranteed
securities of the Oovensaent for Treasury investment and other
accounts during tie month of March* 19511

Purchases • * • • * • * • * * • #*8,3#233*500
Sales * • * # # * * * * » • * *

Met purchases * * ....... . • #*82,671**850
(Sgd.)

B*

0,

Chief* Division of Xxxveetaent*

Wisecarver l*/9/5l

TREASURY DEPARTM ENT
Inform ation S e r v ic e

WASHIN

96
R E L E A S E M O R N I N G NEWS P A P E R S ,
Monday. A p r i l 16, 1951.

S-2662

D u r i n g the m o n t h of M a r c h 1951,
market transactions
guaranteed

in d i r e c t and

securities

of the G o v e r n m e n t

for T r e a s u r y i n v e s t m e n t a n d o t h e r a c c o u n t s
r e s u l t e d in net p u r c h a s e s
Secretary Snyder announced

0 O0

of $ 4 8 2 , 6 7 4 , 8 5 0 ,
today.

(
W

mmm i«is mmsv&pms,

jjS
0 \ J

Tuesday. April 17, 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 April 19 and
to mature July 19, 1951, which were offered on April 12, were opened at the Federal
Reserve Banks on April 16.
The details of this issue are as follows:
Total applied for ** $1,929,812,(XX)
Total accepted
- 1,000,486,000 (includes $117,622,000 entered on a
non-competitive basis and accepted in
full at the average price shown below)
Average price
- 99.613/ Equivalent rate of discount approx. 1.529$ per annua
Range of accepted competitive bids: (Excepting one tender of $100,000)
High
low

- 99.620 Equivalent rate of discount approx* 1.503$ per annua
- 99*612
*
m
m
m
n
*.535$ «
«
(31 percent of the amount bid for at the low {rice was accepted)

Federal Reserve
District

Total
Applied for

Total
Accepted

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

1

1

Total

14 ,410,000
1,427 ,¿42,000
28,555,000
59,730,000
13,570,000
16,033,000
190,913,000
16,110,000
4,758,000
22,246,000
39,779,000
96.266,000

$1,929,812,000

13 ,030,000
608,817,000
15,305,000
59,592,000
13,570,000
15,343,000
126,073,000
14,020,000
4,545,000
22,246,000
32,679,000
75,466.000

$1, 000, 486,000

TREASURY DEPARTMENT
Information Service

WASHINGTON, D .C .

98
RELEASE M O R N I N G NEWSPAPERS,
Tuesday, A p r i l 17, 1 9 r l

S -2 6 6 3

The S e c r e t a r y of the T r e a s u r y a n n o u n c e d last e v e n i n g that the
tenders for $ 1 , 0 0 0 , 0 0 0 , 0 0 0 , or t h e r eabouts, of 9 1 - d a y T r e a s u r y b i l l s
to be d a ted A p r i l 19 a n 5 to m a t u r e J u l y 1 9 , 1951, w h i c h w ere o f f e r e d
on April 12, w e r e o p e n e d at the F e d e r a l R e s e r v e Bs.nks on April 16.
The d e t a i l s of this issue are as follows;
Total a p p l i e d for - $ 1 , 9 2 9 , 8 1 2 , 0 0 0
Total A c c e p t e d
- 1,000,486), 000 (includes $ 1 1 7 , 6 2 2 , 0 0 0
e n t e r e d on a n o n - c o m p e t i t i v e
basis and a c c e p t e d in full at
the a v e r a g e p r i c e s h o w n
below)
Average p r i c e
- 9 9 * 6 1 3 / E q u i v a l e n t rate of d i s c o u n t approx.
1 .5 2 9 $ p e r a n n u m
Range of a c c e p t e d

c o m p e t i t i v e bids;

( E x c e p t i n g one

t e n d e r of

$ 100 ,000 )
- 9 9 .6 2 0 -Equivalent rat e of d i s c o u n t approx.
1 . 503$ p e r a n n u m
■ 9 9 *6 l2 E q u i v a l e n t rate of d i s c o u n t approx.
1.535$ p e r a n n u m

^i-ghi

(31 percent of the a m o u n t b i d for at the
Federal Reserve
District

low p r i c e w as a c c e p t e d )

Total
A p p l i e d for______

Boston
Few York
Philadelphia
Cleve land
Richmond
Atlanta
Chicago
St. Louis

$

14,410,000
1,427,442,000
28.555.000
59.730.000

1 3 .5 7 0 .0 0 0
1 6 ,03 3, 00 0
190,913,000
16 , 110,000

Minneapolis
Kansas City
Dallas

TOTAL

$

13,030,000

6 0 8 ,8 1 7 , 0 0 0
15.105.000
59.592.000
13.

5 7 0 . 0 0 0

15.343.000

,

126 073,000

____9 6 ,2 6 6 ,0 0 0

14.020.000
4,545,000
22.246.000
32.679.000
75.466.000

$1,929,812,000

$1,000,486,000

4,758,000
22.246.000
39.779.000

San F ran cisco

Total
____ A c c e p t e d

ÒOO

- 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 lj2 and 117 (a) (1) of the Internal Revenue Code,

as amended by Section 11$ of the Revenue Act of 19Ul, the amount of discount at
which bills issued hereunder are sold shall not be considered to accrue until
such bills shall be sold, redeemed or otherwise disposed of, and such bills are
excluded from consideration as capital assets.

Accordingly, the owner of

Treasury bills (other than life insurance companies) issued hereunder need in­
clude in his income tax return only the difference between the price paid for
such bills, whether on original issue or on subsequent purchase, and the amount
actually received either upon sale or redemption at maturity during the taxable
year for which the return is made, as ordinary gain or loss.
Treasury Department Circular No. Ul8, as amended, and this notice, prescribe
the terms of the Treasury bills and govern the conditions of their issue.
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.
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 2^

1°5>1

, 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.

April 26, l$gl.

Cash adjustments will

made for differences between the par value of maturing bills accepted in exchange]
and the issue price of the new bills*
The income derived from Treasury bills, whether interest or gain from the
sale or other disposition of the bills, shall not have any exemption, as such,
and loss from the sale or other disposition of Treasury bills shall not have any
special treatment, as such, under the Internal Revenue Code, or laws amendatory
or supplementary thereto.
gift

The bills shall be subject to estate, inheritance,

or other excise taxes, whether Federal or State, but shall be exempt from

all taxation now or hereafter imposed on the principal or interest thereof by

4

TREASURY DEPARTMENT
Washington
^
!

f

-

H

i

FOR RELEASE, MORNING NEWSPAPERS,
Thursday, April 19* 1951
W
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

91

-day Treasury bills, for cash and
April

1951_____ j to t*3 issued on

a discount basis under ccompetitive and non-competitive bidding as hereinafter

will mature
interest.

July 26« 19f?l____ when the face amount will be payable without
11
They will be issued in bearer form only, and in denominations of

Tenders will be deceived at Federal Reserve Banks and Branches up to the
closing hour, two o ’clock p.m., Eastern Standard time, Monday, April 23, 195.1...»
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 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 frcm others must be accompanied

by payment of 2 percent of the face amount of Treasury bills applied for,

TREASURY DEPARTMENT

RELEASE M O R N I N G N E W S P A P E R S
Thursday, A p r i l 19, l$l
■951

S-2664

The S e c r e t a r y of the Treasury, b y this p u b l i c notice, invites
tenders for $ 1 , 0 0 0 , 0 0 0 , 0 0 0 , or t hereabouts, of 9 1 - d a y T r e a s u r y b i lls
for cash a nd in e x c h a n g e for T r e a s u r y b i l l s m a t u r i n g A p r i l 26, 1951 *
to be issued 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 a nd non*'
*
competitive b i d d i n g as h e r e i n a f t e r p r o v ided.
The b i lls o f this
series w i l l be d a t e d A p r i l 26, 1951, and w i l l m a t u r e J u l y 26, 1951
when 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.
T h e y w i l l be
issued in b e a r e r f orm only, and in d e n o m i n a t i o n s of $ 1 , 0 0 0 . * $ 5 000
$10,000, $100,000, $500,000, a n d $ 1 , 0 0 0 , 0 0 0 ( m a t u r i t y value).

Tenders will oe received at Federal Reserve Banks and Branches
up to the closing hour, two o ’clock p.m., Eastern S t a n d a r d time
Monday, April 23v 1951.
Tenders will not be received at the Treasury
Department, Washington.
Each tender must bé 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 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 t h eir o w n account.
T e n d e r s w i l l be r e c e i v e d w i t h ­
out d e p osit f rom i n c o r p o r a t e d b a nks and trust com p a n i e s an d f r o m
responsible a nd r e c o g n i z e d d e a l e r s in i n v e s t m e n t s ecurities.
T e n ders
from others m u s t be a c c o m p a n i e d b y p a y m e n t of 2 p e r c e n t of the face
amount of T r e a s u r y bills a p p l i e d for, u n l e s s the t e n ders are
accompanied, b y a n e x p r e s s g u a r a n t y of p a y m e n t b y a n i n c o r p o r a t e d b a n k
or trust company.
I m m e d i a t e l y a f t e r the c l o s i n g hour, tenders w i l l be o p e n e d at
the F e d e r a l R e s e r v e B a n k s and B r a n ches, f o l l o w i n g w h i c h p u b l i c
announcement w i l l be m a d e b y the S e c r e t a r y of the T r e a s u r y of the
amount and p r i c e r a nge of a c c e p t e d bids.
Those s u b m i t t i n g tenders
vill be a d v i s e d of the a c c e p t a n c e or r e j e c t i o n thereof.
The
Secretary of the T r e a s u r y e x p r e s s l y r e s e r v e s the r i g h t to a c c e p t or
reject a n y or a l l tenders, in w h o l e or in part, a nd h is a c t i o n in
any such r e s p e c t s h all be final.
S u b j e c t to these r e s e r v a t i o n s ,
non-competitive tenders for $ 2 0 0 , 0 0 0 or less w i t h o u t s t a t e d p r i c e
m o m any 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 a c c e p t e d c o m p e t i t i v e bids.
S e t t l e m e n t for
a c c e p t e d tenders in a c c o r d a n c e w i t h the bids m u s t be m a d e or
c o m p l e t e d at the F e d e r a l R e s e r v e B a n k on A p r i l 2 6 , 1951* in cash or
other 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 a m o u n t of
T r e a s u r y b i l l s m a t u r i n g A p r i l 26, 1951.
C a s h a n d e x c h a n g e tenders
will r e c e i v e e q u a l treatment.
C a s h a d j u s t m e n t s w i l l be m a d e for
d i f f e r e n c e s b e t w e e n the p a r v a l u e of m a t u r i n g b i l l s 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 b i l l s .
The i n c o m e d e r i v e d f r o m T r e a s u r y bills, w h e t h e r i n t e r e s t or gain
from the sale or o t h e r d i s p o s i t i o n of the bills, s h a l l n o t h a v e 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 h e r d i s p o s i t i o n of
T r e a s u r y b i l l s s h a l l n ot h a v e a n y s p e c i a l t r e a tment, as such, u n der
the I n t e r n a l R e v e n u e Code, or laws a m e n d a t o r y or s u p p l e m e n t a r y
thereto.
The b i l l s shall be s u b j e c t to estate, i n h e r i t a n c e , gift or
other e x c i s e taxes, w h e t h e r F e d e r a l or State, b u t s h a l l be e x e m p t
from 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 o s e d on the p r i n c i p a l or
interest t h e r e o f b y a n y State, or a n y of the p o s s e s s i o n s of the
U n i t e d States, or b y a n y l o cal t a x i n g a u t h o r i t y .
F o r p u r p o s e s of
t a x a t i o n the a m o u n t of d i s c o u n t at w h i c h T r e a s u r y b i l l s are originally
sold b y the U n i t e d S t a t e s s h a l l be c o n s i d e r e d to be i n t e r e s t .
Under
Sections 42 a n d 117 (a) (l) of the I n t e r n a l R e v e n u e Code, as amended
b y . S e c t i o n 115 of the R e v e n u e A c t of 1941, the a m o u n t of d i s c o u n t at
w h i c h b i l l s i s s u e d h e r e u n d e r are sol d s h all n o t be c o n s i d e r e d to
a c c r u e u n t i l s u c h b i l l s shall be sold, r e d e e m e d or o t h e r w i s e
d i s p o s e d of, a nd such b i l l s are e x c l u d e d f r o m c o n s i d e r a t i o n as
c a p ital assets.
A c c o r d i n g l y , the o w n e r of T r e a s u r y b i l l s ( o t h e r
t han life i n s u r a n c e com p a n i e s ) i s s u e d h e r e u n d e r n e e d i n c l u d e in his
income tax r e t u r n o n l y the d i f f e r e n c e b e t w e e n the p r i c e p a i d for
such bills, w h e t h e r on o r i g i n a l issue or on s u b s e q u e n t pu r c h a s e ,
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 the r e t u r n is made, as
o r d i n a r y g a i n or loss.
T r e a s u r y D e p a r t m e n t C i r c u l a r No.. 4l8, as amended, a n d this
notice, p r e s c r i b e the terms of the T r e a s u r y b i l l s a n d g o v e r n the
c o n d i t i o n s of t h e i r issue.
Copies of the c i r c u l a r m a y be o b t a i n e d
fro m a n y F e d e r a l R e s e r v e B a n k or B r a n c h .

oQo

9

101
-

2

-

Francis, who is a Universal Pictures star, will be
the chief "speaker" at pep sessions for carriers throughout
the country.

Following the close of the pledge campaign

on May 19, the GI mule will highlight newspaperboy parties
celebrating the campaign achievements.
"Francis* hosts in each city will be the newspapers
cooperating in the campaign," Stodghill explained.

He

said more than 600 daily newspapers will conduct pledge
campaigns.

"It will be the largest volunteer door-to-door

campaign ever undertaken by the newspaper carriers," he
said.
The newspaper carriers have served as volunteers in
the Bond Program ever since its inception in 1941.

Universal

Pictures is preparing a complete publicity package saluting
the carriers for their patriotic effort, including tele­
vision slides, motion picture trailers, special newspaper
ads and radio announcements.
Francis is being equipped for the tour with a special
shoe, so that he can give a little of the sound advice
that has made him famous.

He will stamp as his autograph

the message "Buy U. S. Defense Bonds —
mule."

oOo

Francis the

/

-SC

APRIL 22, 1951

n /

L5

Hollywood’s famous talking mule ’’Francis1* has been
chosen as the official mascot for the National Newspaperboy
Pledge Campaign for U. S. Savings Bonds to be conducted
during May, Jere Healy, President of the International
Circulation Managers Association, announced today.
Secretary^Snyder said that Francis would be a
’’good and helpful mascot” to the newspaperboys * Defense
Bond Sales promotion effort.
”We appreciate the donation of Francis to the
campaign,” the Secretary said.
The four-legged motion picture star will visit
newspaperboys in 35 cities.

His first stop will be in

Atlanta on April 30.
In Atlanta, as in every city in which he will appear,
Francis will "talk” to newspaper carriers participating
in a record-breaking public service effort to distribute
and collect 25 million bond-buying pledges.

This

undertaking is sponsored by the International Circulation
Managers Association and by the Circulation Managers
Advisory Committee to the Treasury.

This Committee is

headed by Howard W. Stodghill of Philadelphia.
’’The half-million newspaper carriers who will parti­
cipate in this patriotic pledge campaign as Defense Bond
Sales Agents will hear the praises of many for their
contribution," Mr. Stodghill said, "but none so unusual
as the verbal pat-on-the-back they will get from Francis.”

TREASURY DEPARTMENT

105
RELEASE S U N D A Y NEWSPAPERS,
April 22,

1951.

________ _

S-2665

H o l l y w o o d ' s famous t a l k i n g m u l e " F r a n c i s ” h a s b e e n c h o s e n
as the o f f i c i a l m a s c o t for the National N e w s p a p e r b o y P l e d g e
Campaign for U
S. S a v i n g s B o n d s t o b e c o n d u c t e d d u r i n g may,
Jere Healy, P r e s i d e n t of the I n t e r n a t i o n a l C i r c u l a t i o n M a n a g e r s
Association, a n n o u n c e d today.
S e c r e t a r y of the T r e a s u r y S n y d e r s a i d t hat F r a n c i s w o u l d be

a "good and h e l p f u l m a s c o t " to the n e w s p a p e r b o y s ' D e f e n s e B o n d
Bales p r o m o t i o n e f f o r t .
"We a p p r e c i a t e
the S e c r e t a r y said.

in

the d o n a t i o n of F r a n c i s

to the

campaign,"

The f o u r - l e g g e d m o t i o n p i c t u r e s t a r w i l l v i s i t n e w s p a p e r b o y s
35 cities; H i s f i r s t s top w i l l be in A t l a n t a o n A p r i l 30«

In A t l a n t a , as in e v e r y c i t y in w h i c h h e w i l l ap p e a r ,
Francis w i l l "talk" to n e w s p a p e r c a r r i e r s p a r t i c i p a t i n g in a
rec o r d - b r e a k i n g p u b l i c s e r v i c e e f f o r t to d i s t r i b u t e a n d c o l l e c t
25 m i l l i o n b o n d - b u y i n g p l e d g e s .
T h i s u n d e r t a k i n g is s p o n s o r e d
by the I n t e r n a t i o n a l C i r c u l a t i o n M a n a g e r s A s s o c i a t i o n a n d b y the
Circulation M a n a g e r s A d v i s o r y C o m m i t t e e to the T r e a s u r y .
This
Committee is h e a d e d b y H o w a r d W. S t o d g h i l l of P h i l a d e l p h i a .
"The h a l f - m i l l i o n n e w s p a p e r

carriers

who will participate

in this p a t r i o t i c p l e d g e c a m p a i g n as D e f e n s e B o n d S a l e s A g e n t s
vlll h e a r the p r a i s e s of m a n y f or t h e i r c o n t r i b u t i o n , "
Mr. S t o d g h i l l said, "but n o n e so u n u s u a l as the v e r b a l p a t - o n the-back t h e y w i l l get f r o m F r a n c i s . "
F r a ncis, w h o is a U n i v e r s a l P i c t u r e s star, w i l l be the
chief " s p eaker" at p e p s e s s i o n s f o r c a r r i e r s t h r o u g h o u t the
country.
F o l l o w i n g the c l o s e o f the p l e d g e c a m p a i g n on M a y 19>
the GI m u l e w i l l h i g h l i g h t n e w s p a p e r b o y p a r t i e s c e l e b r a t i n g
the c a m p a i g n a c h i e v e m e n t s .
" F r a n c i s ’ h o s t s in e a c h c i t y w i l l b e the n e w s p a p e r s
cooperating In the c a m p a i g n , " S t o d g h i l l e x p l a i n e d .
He said more
than 600 d a i l y n e w s p a p e r s w i l l c o n d u c t p l e d g e c a m p a i g n s .
"It
be the l a r g e s t v o l u n t e e r d o o r - t o - d o o r c a m p a i g n e v e r u n d e r ­
taken by the n e w s p a p e r c a r r i e r s , " h e said.

2
The n e w s p a p e r c a r riers h a v e s e rved as v o l u n t e e r s in the
B o n d P r o g r a m e ver since its i n c e p t i o n in 1941.
Universal
Pictures is p r e p a r i n g a complete p u b l i c i t y p a c k a g e s a l u t i n g the
carriers for their p a t r i o t i c effort, i n c l u d i n g t e l e v i s i o n
slides, m o t i o n pi c t u r e trailers, s p e cial n e w s p a p e r a ds a nd radio
announcements.
F r a n c i s is b e i n g e q u i p p e d for the .tour w i t h a s p e c i a l shoe,
so that he can give a little of the sound a d v i c e that has m a d e
h i m famous.
He w ill stamp as h i s a u t o g r a p h the m e s s a g e "Buy
U. S. D e f e n s e B o n d s -- F r a n c i s the Mule."

0O0

.s'- aC

IMMEDIATE RELEASE
April 20, 1951

George J. Schoeneman, Commissioner of Internal Revenue, announced
today a new ruling of particular interest to dairy farmers and breeders
of cattle and horses*
The new ruling is the result of certain court decisions relating
to livestock.

Under the ruling dairy farmers and breeders of cattle

and horses may, under certain conditions, obtain capital gains treatment
with respect to the tax on profits from the sale of dairy and breeding
cattle, draft horses and other livestock.
As instances of the application of this ruling, this treatment is
generally available if the animal is used for draft or dairy purposes,
and in the case of breeding animals if it is the practice of the seller
to keep such animals for substantially their useful life as breeders*
The capital gains treatment results from a special provision of the
revenue laws covering "property used in the business".
The new ruling does not apply to animals raised just for sale.
Also animals which are used only temporarily as breeders and producers,
including ordinarily hogs, chickens, and turkeys, do not come within the
new ruling.
It was pointed out that the Bureau of Internal Revenue is examining
various problems as to which new rulings may be required in order to
obtain a proper reflection of income in the light of the change ir>
position announced today.

oOe

TREASURY DEPARTMENT

I M M E DIATE RELEASE,
Friday, A p r i l 20, 19 5 1 .

S-26 6 6

G e orge J. Schoeneman, C o m m i s s i o n e r of I n t e r n a l Revenue,
a n n o u n c e d t o d a y a n e w r u l i n g of p a r t i c u l a r i n t e r e s t to d a i r y
farmers and b r e e d e r s of cattle and horses.
The n e w r u l i n g is the r e sult of c e r t a i n court d e c i s i o n s r e l a t ­
ing to livestock.
U n d e r the r u l i n g d a i r y farmers a n d b r e e d e r s of
cattle a nd h o r s e s may, u n d e r c e r t a i n conditions, o b t a i n c a p ital
gains tre a t m e n t w i t h r e s p e c t to the tax on p r o f i t s fro m the sale
of d a i r y and b r e e d i n g cattle, draft h o r s e s an d o t h e r livestock.
As i n s t a n c e s of'the a p p l i c a t i o n of this ruling, this t r e a t ­
ment is g e n e r a l l y a v a i l a b l e if the a n i m a l is u s e d for d r aft or
d a iry pu r p o s e s , and in the case of b r e e d i n g a n i m a l s if it is the
practice of the seller to k e e p such a n i m a l s for s u b s t a n t i a l l y
their u s e f u l life as b r e e d e r s . The c a p i t a l gains t r e a t m e n t results
from a s p e c i a l p r o v i s i o n of the re v e n u e laws c o v e r i n g " p r o p e r t y
used in the b u s i n e s s " .
The n e w r u l i n g does not a p p l y to a n i m a l s r a i s e d just for sale,
Also a n i m a l s w h i c h are used o n l y t e m p o r a r i l y as b r e e d e r s an d
producers, i n c l u d i n g o r d i n a r i l y hogs, chickens, a n d turkeys, do
not come w i t h i n the n e w ruling,
tIt was p o i n t e d out that the B u r e a u of I n t e r n a l R e v e n u e is
exa m i n i n g va r i o u s p r o b l e m s as to w h i c h n e w ru l i n g s m a y be r e q u i r e d
in o r der to o b t a i n a p r o p e r r e f l e c t i o n of income in the light of
the change in p o s i t i o n a n n o u n c e d today.

oOo

3
EARNINGS, EXPENSES, AND DIVIDENDS OP NATIONAL BANKS FOR TEARS
ENDED DECEMBER 31, 1950 AND 19^9 - Continued
(Amounts in thousands of dollar!)
1
*
:
.»
1950
Recoveries, transfers from valuation reserves.
and profits?
On securities*
Recover!es............................ $ 9.670
Transfers from valuation reserves,.,..
28,999
Profits on securities sold or redeemed • 60,951
On loans*
Recoveries* ••«.**••••........ .
Transfers from valuation reserves* ••*• •
All other*...... ............. ...... .

15,l»l
13.333
25.378

TOTAL RECOVERIES, TRANSFERS PROM
VALUATION RESERVES AND PROPITS...... 153*732
Losses, charee-offs. and transfers to valuation reserves*
On securities*
Losses and charge-offs.•..... ••*••••«•
2U .010
Transfers to valuation reserves* ...... * la ,360
On loans*
Losses and charge-offs*................ 10,909
Transfers to valuation reserves*.••••*• 109,258
All other*...................... .
30,710
TOTAL LOSSES, CHARGE-OFFS AND TRANS­
FERS TO VALUATION RESERVES.......... a6,277
PROFITS BEFORE INCOME TAXES............ .
793.100
Taxes on net income*
Federal............................... .. 2*11,91)9
State....................... ........ .
i3 ,5*a
TOTAL TAXES ON NET INCOME.......... 255.^0
NET PROFITS BEFORE DIVIDENDS................
Cash dividends declared*
On preferred stock......................
On common stock.................... .

19H9

$

6,136
15.1W5
1)0,232

^
*
*

Change
since lQta

+ 3,53*1
+13.55*1
+20,719

30.771

+1,950
+1,870
-5.393

117,1)98

+ 36,23*)

21,257

+2,753
+23,050

lit,1)96
122,122

-3,587
-12,864
+1,808

13.H51

11,1163

18,310

28,932
205,117

+ 11,160
+12U.237

182,979

193.982

+58,970
+2,538
+61,508

537.610

lt7U,881

+62,729

712
228,792

1,100
303 ,
20^,7^

-386
+25,1*18
+2*1,760

lf-,965

11,981

-l6

Rate of net profits*
Percent
8.1)9
To capital funds 1/.......................
Rate of cash dividends*
To capital funds l/......... .......... .
3 .6 3

Percent

Percent

TOTAL CASH DIVIDENDS DECLARED........ 229,50^
Number of hanks l/.••••••.................. .

1/

At end of period*

- o 0 0

11,003

8.00

+.i)9

3.**5

+.18

*• 2

EARNINGS, EXPENSES, AND DIVIDENDS 07 NATIONAL BANES SOB YEARS
ENDED DSCMBER 31, 1950 AND 19U9
(Amounts in thousands of dollars)
-57 .... _

•

i
!
Capital stock, uar value! i f
Preferred........... ...................
Common*.............. * ...... ...............

11e

.... .

%

1950

!
!

191*9

* Change since
19119
:

*

$
15,102 $ 16,568
1,986,5^ 1.899.772

- 1 ,1*66
*86,776

TOTAL CAPITAL STOCK...... ................

.

2,001,650 1 ,916,31»

+85,310

Capital fonde 1/ ♦ ................... • • • • • • • • • • * • •

.

6,328,989

5.93^3*a.

+391*.61*8

590,533
132,330
1 ,103,360
119,601*

117,682
969,085
109.533

582,205

+8,328
♦1 ^,6^
+13**, 275
+10,071
+7.271
+9.7**7

112.918

56,585
60,31*5
109.m

+1.567

2,192,713

2,001*,806

+187.907

230,331

1*21,71*1

211,750
388,!*3l*

♦33.307

11» 775

10,820

+955

19 0 ,37 !*
7^»^16

1S1*,02>*
65,717

+6,350

33,6 19
37**,812

30,666
356 ,9 13

+2,953
+17,899

l,2 l*8 ,32 l*

♦82 ,71*1*

.

Earnings from current operations!
Interest and dividends!
On 0 * S. Government obligations* * . • • • • * .
On other securities*• • • • • • » . • • • • • . . . . . . .
Interest and discount on loans*............. .
Service charges on deposit accounts...... .
Other service charges, commissions, fees,
and collection and exchange charges....
Trust department*• • • • • • • • • • • • • » • • • • * • • * • • , .
Other current earnings................... ...
TOTAL EARNINGS PROM COBRENT
OPERATIONS........................

,.

Current oneratine: expenses!
Salaries and wages!
Officers* ........ ......... ...... * * . * ,
Employees other than officers**•...•••*,.
Pees paid to directors and members of
executive, discount, and advisory
committees* **..........*......
Interest on time deposits (including
savings deposits)***......... .
.
Taxes other than on net income.......... .
Recurring depreciation on banking house,
furniture and fixtures*..... ......... ..
Other current operating expenses*•••••••«<,

63,856
70,092

TOTAL CURRENT OPERATING EXPENSES...... , 1,337,068
NET EARNINGS PROM CURRENT OPERATIONS.......

855,61*5

756,1(82

+18 ,58 1

+8,699

+99,183

-

2

-

$230 »000,000 in comparison with $203,000,000 in the previous year« The
rate of cash dividends was 3*^3 percent of capital fends* The cash dividends
in 1950 were

kj

percent of net profits available for the year« The remaining

37 percent of net profits, or $308,000,000» was retained by the banks in their
capital fends*
On December 3*U 1950 there were ^,965 national banks in operation, as
compared to *1,981 at the end of 19*19 •

A

TEEASUET DEPJffiTMEOT
Comptroller of the Currency
Washington
RELEASE MORNING NEWSPAPERS

fax.,

Press Service
3 / /

n

i /
v

National hanks in the United States and possessions had net operating
earnings of $£>55 »000,000 for the calendar year 1950* Comptroller of the
Currency Preston Delano announced today, This was an increase of $99 $000,000
over the year 19 ^9 *
Gross earnings were $2,192,000,000, an increase of $188,000,000 over 19H9,
Principal items of operating earnings in I95O were $1,103,000,000 from interest I
and discount on loans, an increase of $13 ^,000,000 over 19 ^9 , and $590 ,000,000
from interest on United States Government obligations, an increase of $8,000,000
Other principal operating earnings were $13 2 ,000,000 from interest and dividends]
on securities other than United States Government, and $120,000,000 from
service charges on deposit accounts. Operating expenses, excluding taxes on
net income, were $1,337,000,000 as against $1 ,2 ^8 ,000,000 in 19 ^9 , Principal
operating expenses were $66^,000,000 for salaries and wages of officers and
employees and fees paid to directors, an increase of $53 ,000,000 over 19 ^9 , and
$19 0 ,000,000 expended for interest on time deposits, an increase of $6 ,000,000,1
Adding to the net operating earnings profits on securities sold of
$6 1 ,000,000 and recoveries on loans and investments, etc, (including adjustments]
in valuation reserves) of $93 ,000,000 and deducting losses and charge-offs
(including current additions to valuation reserves) of $216 ,000 ,000 , and taxes
on net income of $255 ,000 ,000 , the net profits of the banks before dividends
for the year 1950 were $53 $»000,000 , which amounts to 8 ,^ 5 percent of capital
funds. Net profits for the previous year were $^75»000,000, or 8 percent of
capital funds.
Cash dividends declared on common and preferred stock in 1950 totaled

112
TREASURY DEPARTMENT
C o m p t r o l l e r of the C u r r e n c y
Washington

R E L E A S E M O R N I N G NEWSPAPERS,
Thursday, A p r il 26 , 1 9 5 1 . __

S-2667

N a t i o n a l b a n k s in the U n i t e d S t a t e s a n d p o s s e s s i o n s h a d net
ope r a t i n g e a r n i n g s of $ 8 5 5 * 0 0 0 , 0 0 0 for the c a l e n d a r y e a r 1 9 5 0 *
C o m p t r o l l e r of the C u r r e n c y P r e s t o n D e l a n o a n n o u n c e d today.
This
was a n i n c r e a s e of $ 9 9 * 0 0 0 , 0 0 0 o v e r the y e a r 1949.
Gross e a r n i n g s w e r e $ 2 , 1 9 2 , 0 0 0 , 0 0 0 , a n i n c r e a s e of
$ 1 8 8 , 0 0 0 , 0 0 0 over 19^9.
P r i n c i p a l items of o p e r a t i n g e a r n i n g s in
$ 9 5 0 w e r e $ 1 , 1 0 3 , 0 0 0 , 0 0 0 f r o m i n t e r e s t a n d d i s c o u n t on loans, a n
increase of $ 1 3 ? , 0 0 0 , 0 0 0 over 1949* a n d $ 5 9 0 , 0 0 0 , 0 0 0 f r o m i n t e r e s t
on U n i t e d Stat e s G o v e r n m e n t o b l i g a t i o n s , a n i n c r e a s e of $8,000,000.
Other p r i n c i p a l o p e r a t i n g e a r n i n g s wer e $ 1 3 2 , 0 0 0 , 0 0 0 f r o m i n t e r e s t
and d i v i d e n d s on s e c u r i t i e s o t h e r t h a n U n i t e d S t ates G o v e rnment,
and $ 1 2 0 , 0 0 0 , 0 0 0 f r o m s e r vice charges on d e p o s i t a c c ounts.
Operating expenses, e x c l u d i n g taxes on n e t income, were$ 1 * 3 3 7 * 0 0 0 * 0 0 0 as a g a i n s t $ 1 , 2 4 8 , 0 0 0 , 0 0 0 in 1949.
Principal
operating e x p e n s e s w ere $ 6 o 4 , 0 0 0 , 0 0 0 for s a l aries a n d w a g e s of
officers a n d e m p l o y e e s a nd fees p a i d to d i r e c t o r s , a n i n c r e a s e of
$ 5 3 *0 0 0 , 0 0 0 o ver 1949* a n d $ 1 9 0 ,0 0 0 , 0 0 0 e x p e n d e d for i n t e r e s t on
time deposits, a n i n c r e a s e of $ 6 ,0 0 0 , 0 0 0 .
A d d i n g to the net o p e r a t i n g e a r n i n g s p r o f i t s on s e c u r i t i e s
sold -of $ 6 1 , 0 0 0 , 0 0 0 a nd r e c o v e r i e s on loans a n d i n v e s t m e n t s , etc.
(including a d j u s t m e n t s in v a l u a t i o n r e s e r v e s ) of $ 9 3 * 0 0 0 , 0 0 0 and
deducting losses a nd c h a r g e - o f f s ( i n c l u d i n g cu r r e n t a d d i t i o n s to
valuation r e s e r v e s ) of $ 2 1 6 , 0 0 0 , 0 0 0 , a nd taxes on net i n c o m e of
$2 5 5 * 0 0 0 , 0 0 0 , the net p r o f i t s of the b a n k s b e f o r e d i v i d e n d s for
the y e a r 1 9 5 0 w e r e $ 5 3 8 , 0 0 0 ,0 0 0 , w h i c h a m o u n t s to 8.49 p e r c e n t of
capital funds
Net. p r o f i t s for the p r e v i o u s y e a r w e r e $ 4 7 5 * 0 0 0 , 0 0 0
or 8 p e r c e n t of c a p i t a l f u n d s .
Cash dividends- d e c l a r e d on c o m m o n a n d p r e f e r r e d s t o c k in 1950
totaled $ 2 3 0 , 0 0 0 , 0 0 0 in c o m p a r i s o n w i t h $ 2 0 5 , 0 0 0 , 0 0 0 in the
previous year.
The rate of cash d i v i d e n d s was 3 . 6 3 p e r c e n t of
capital f u n d s . The c a s h d i v i d e n d s in 1950 w ere 43 p e r c e n t of net
profits a v a i l a b l e for the year.
The r e m a i n i n g 57 p e r c e n t of net
profits, or $ 3 0 8 , 0 0 0 ,0 0 0 , was r e t a i n e d b y the b a n k s in t h eir
capital funds
On D e c e m b e r 31* 1950 there w e r e 4 , 9 6 5 n a t i o n a l b a n k s
operation, as c o m p a r e d t o . 4 , 9 8 1 at the end of 1949.

in

113
2

-

EARNINGS, EXPENSES, Ain ^ I V I D E O S OF NATIONAL BANTS FOP. YEARS
ENDED DECEMBER 31, 1950 and 1949
(Amounts in thousands of dollars)

:
1950
:
1949
:Change since
__________________ ______________________
:
:
:
1949
Capital stock, par value: l/
~
"""""" '
Preferred..... ........ 7 .............. ...$
15,102$
16,568
-1,466
1,899,772
/86,776
Common* ............................ ....... 1,986,548
TOTAL CAPITAL STOCK...... ............

2,001,650

1,916,340

/85,310

6,528,989

5,934,341

/394,648

582,205
117,682
969,085
109,533

/8,328
/l4,648
/134,275
/l0,071

56,585
60,345
109,371

/7,271
/9,747
/3,567

2,192,713

2,004,806

/187,907

230,331
421,741

211,750
388,434

/l8,581
/33,307

11,775

10,820

/955

190,374
74,416

184,024
65,717

/6,350
/8,699

33,619
374,812

30,666
356,913

/2,953
/17,899

TOTAL CURRENT OPERATING EXPENSES....*• 1,337,068

1,248,324

r/88,744

756,482

/99,163

Capital funds l/.

Earnings from current operations:
Interest and dividends:
On U, S* Government obligations........ . 590,533
On other s e c u r i t i e s . .. , 132,330
Interest and discount on loans,..,
1,103,360
Service charges on deposit accounts....«•
119,604
Other service charges, commissions, fees,
and collection and exchange charges..**
63,856
Trust department,
70,092
Other current earnings
112,938
TOTAL EARNINGS FROM' CURRENT
OPERATIONS.... ................ .
Current operating expenses:
Salaries and wages:
Offi cers
Employees other than officers.
Fees paid to directors and members of
executive, discount, and advisory
committees ....................... ...., 11
Interest on time deposits (including
savings deposits)•*••••••••••••••••••••
Taxes other than on net income...........
Recurring depreciation on banking house,
furniture and fixtures.................
Other current operating expenses.........

NET EARNINGS FROM CURRENT OPERATIONS*......

855,645

114

- 3 ~
EARNINGS, EXPENSES, AND DIVIDENDS OF NATIONAL BANKS FOR YEARS
ENDED DECEIVER 31, 1950 AND 19h9 - Continued

(Amounts in thousands of d o l l a r s ) ______
:
Change
1950
5since 19U9
19h9
Recoveries, transfers from valuation
reserve? and profits:
On securities:
Recoveries. ...... ••••»•*.•••..... ,
# >'.9,670 $ 6 ,1 3 6
Transfers from valuation reserves,..,.
28,999
15,W(5
Profits on securities sold or redeemed 60,951
1(0,232
On loans:
Recoveries.
Transfers from valuation reserves....
All other*............. .

+ 3,531*
♦13,551*
4-20,719

l5,l(0i
13,333
25,378

13151
11,1(63
30,771

♦i,95o
4-1,870
-5,393

153.732

1 1 7 ,1(98

♦36.231*

2l*,010
1*1,3 6 0

21,257
18 ,3 10

♦2,753
♦23,050

10,909
109,258
30.71*0

lli,U96
12 2 ,1 2 2
28.932

-3,587
-12,861*
♦1.8 0 8

TOTAL LOSSES, CHARGE-OFFS,AND TRANS­
FERS TO VALUATION RESERVES........
PROFITS BEFORE INCOME TAXES.................

216,277: 205.117
793,100 660*063

♦1 1 .1 6 0
♦l21*,237

Taxes on net income:
Federal................ .................
State.......................... .........
TOTAL TAXES ON NET INCOME........ ..
WET PROFITS BEFORE DIVIDENDS....... .......

21*1,91*9
13.51*1
255.190
537,610

182,979
11.003
193.982
1*71*,881

*62,729

On preferred stock....................,,
On common stock.

712
228,792

1 ,1 0 0
203,61*1*

-388
4-25,1 U8

TOTAL CASH DIVIDENDS DECIARED......

229,501*

20i*,7l(li

♦2l*,760

Hmber of banks 1 / ..................7 3 ......

_T T , W

“ 1*7551

------ =35

Hate of net profits:
To capital funds 1/ .............. .
Hate of cash dividend's:
-— To capital funds 1 / ............... .....
1/ At end of period.

Percent
” 837'

Percent
8 .Ö0

Percent
f.L9

TOTAL RECOVERIES, TRANSFERS FROM
VALUATION RESERVES AND PROFITS....
Losses, charge-offs, and transfers to valu­
ation reserves:
On "securities:

Losses and charge-offs .............
Transfers to valuation reserves......
On loans:
Losses and charge-offs........... .
Transfers to valuation reserves......
All other............. ..........

♦58,970
f2,538
*6 1.5 0 8

Cash dividends declared:

___Lid

».18

/

RELEASE, HORSING NEWSPAPERS,

Tuesday, April

2h»

/

b

1951»

The Secretary of the Treasury announced last evening that the tenders for
11,000,000,000, or thereabouts, of 91-day Treasury bills to be dated April 26 and to
mature July 26, 1951# which were offered on April 19* were opened at the Federal Re­
serve Banks on April 23*
The details of this issue are as follows*
Total applied for - $2,158,970,000
Total accepted
- 1,002,033,000 (includes $115,621,000 entered on a
non-competitive basis and accepted in
full at the average price shown below)
Average price
- 99.619/ Equivalent rate of discount approx. l.$Q6% per arm®
Range of accepted competitive bids:
- 99.630 Equivalent rate of discount approx. 1.1*6h % per annus
- 99.618
*
*
»
»
•
1.511$ «
*

High
Low

(3 1 percent of the amount bid for at the low price was accepted)

Federal Reserve
District

Total
Applied for

Total
Accepted

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

1

$

TOTAL

33 ,01*8,000
1,613,775,000
28,1*05,000
69,2 1 i*,000
6 ,1*68,000
16 ,319,000
216 ,1*1*8,000
19,560,000
2,905,000
25,229,000
22,281,000
10 5 .318,000

$2 ,158 ,970,000

21»,725,000
7 10 ,031,000
10 ,090,000
37,231,000
5 ,777,000
15,519,000
107,562,000
8,1*21,000
2,130,000

18,972,000
16 ,169,000
111*.806,000
$1 ,002 ,033,000

TREASURY DEPARTMENT
Information Service

WASHINGTON, D .C .

116
RELEASE M O R N I N G NEWS P A P E R S ,
Tuesda y, A p r i l 2 4, 1 9 51.___

S-2668

The S e c r e t a r y of the T r e a s u r y a n n o u n c e d last e v e n i n g that the
tenders for $ 1 , 0 0 0 , 0 0 0 , 0 0 0 , or t h e r e a b o u t s >
.
9 1 - d a y T r e a s u r y bills
to be d a t e d A p r i l 26 a nd to m a t u r e J u l y 2b, 1951, w h i c h were o f f e r e d
on April 19, w ere o p e n e d at the F e d e r a l R e s e r v e B a n k s on A p r i l 23.
The d e t a i l s

of this

issue are as follow's •

T o t a l a p p l i e d for - $ 2 , 1 5 8 , 9 7 0 , 600T o tal a c c e p t e d
1 , 0 0 2 , 0 3 3 , 0 0 0 (includes $ 1 1 5 , 6 2 1 , 0 0 0
e n t e r e d on a n o n - c o m p e t i t i v e
b a s i s a n d a c c e p t e d in full
at the a v e r a g e p r i c e s h o w n
below)
Av e r a g e p r ice
- 9 9 .6 1 9 / E q u i v a l e n t rate of d i s c o u n t approx.
1 .5 0 6 $ p e r a n n u m
Range of a c c e p t e d

c o m p e t i t i v e bids

High

- 9 9 . 6 3 0 E q u i v a l e n t rate

of d i s c o u n t a p p r o x .

1.464$ p e r a n n u m
- 9 9 .6 18

Low

E q u i v a l e n t rate

1.511$
(3 1 percent

of the a m o u n t b i d for at the

$

33,048,000
1,613,775,000
28.405.000
69.214.000
6.468.000
1 6 .3 1 9 . 0 0 0
216.448.000
1 9 '5 6 0 , 0 0 0

.

TOTAL

low p r i c e was a c c e p t e d )
Total
Accepted

Total
A p p l ied for

Federal R e s e r v e
District
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San F rancisco

of d i s c o u n t a p p r o x
per annum

$

24,725,000

710 , 031,000
1 0 ,0 9 0 , 0 0 0
37.231.000
5.777.000

.

15 519.000
1 0 7 ,5 6 2 , 0 0 0

8.421.000

2 9 0 5 .0 0 0

2 .7 3 0 . 0 0 0

,

2 5 ,2 2 9 , 0 0 0

18 972,000

22,281,000

1 6 ,1 6 9 , 0 0 0

1 0 5 . 3 1 8 .000

44,806,000

$2,158,970,000

$ 1 ,0 0 2 ,0 3 3 , 0 0 0

0O0

I

/?
RELEASE AFTERNOON PAPERS
Wednesday, A p r i l
1951

0

S e c r e ta r y Snyder to d ay announced th e appointment o f Gerard S . Nollen,
Chairman o f th e Board o f the Bankers L i f e Company, Des M o in es, as c o chairman o f the T reasu ry A d v iso ry Committee on Defense Bonds f o r the
S t a t e o f Iow a, M r, N o lle n succeeds H erbert H orton, r e s ig n e d .
S e c r e ta r y Snyder sa id *.” The Iowa D efense Bond program i s n o tab le for
th e le a d e r sh ip o f e x c e lle n t v o lu n te e r s , such as M r. N orton , who have
g iv e n gen ero u sly o f t h e i r tim e and e f f o r t s . We are c o n fid e n t th a t the
Iowa program, under th e le a d e r sh ip o f co-chairm an N o lle n , w i l l continue
to s e t a pace fo r th e o th e r s t a t e s , ”
A d viso ry committees are e s ta b lis h e d i n e a ch ^ sta te and th e D i s t r i c t
o f Columbia to c o n s u lt w ith th e T reasu ry on i t s program to promote the
s a le o f Defense Bonds through p a y r o ll s a v in g s , b an ks, sch o o ls and business
and c i v i c gro u p s.
M r. N o lle n en tered th e employ o f th e Bankers L i f e Company in 1912
as an a c tu a r y . He was named P r e s id e n t in 1926 and s in c e 19l;5> has served
as Chairman o f the Board. Under hdxi lgTsd^rehtip .„the., eonearn .
±.ho
ju-p
'pim wjijiu.»,. i n a d d itio n to .
devo tin g much o f h is tim e.tand t a l e n t to th e in su ran ce i n d u str y , he
prominent in p u b lic w e lfa re and o th er c i v i c a c t i v i t i e s i n h is home

y

R E L E A S E A F T E R N O O N NEWS P A P E R S ,
W e d n esday, A p r i l 25, 1951«

S -2 6 6 9

. S e c r e t a r y S n y d e r t o d a y a n n o u n c e d the a p p o i n t m e n t of
G e r a r d S. Nollen, C h a i r m a n of the B o a r d of the B a n k e r s
Life Company, Des Moines, as c o - c h a i r m a n of the T r e a s u r y
A d v i s o r y C o m m i t t e e on D e f e n s e B o n d s for the State of Iowa.
Mr. N o l l e n succeeds H e r b e r t Horton, resigned.
S e c r e t a r y S n y d e r said:
"The I o w a D e f e n s e B o n d p r o ­
g r a m is n o t a b l e for the l e a d e r s h i p of e x c e l l e n t volu n t e e r s ,
such as Mr. Horton, w h o h a v e g i v e n g e n e r o u s l y of their
time and efforts.
We are c o n f i d e n t that the Iow a program,
u n d e r the l e a d e r s h i p of C o - c h a i r m a n Nollen, w i l l co n t i n u e
to set a pace for the o t h e r States,"
A d v i s o r y c o m m i t t e e s are e s t a b l i s h e d in e a c h State a nd
the D i s t r i c t of C o l u m b i a to co n s u l t w i t h the T r e a s u r y on
its p r o g r a m to p r o m o t e the sale of D e f e n s e B o n d s t h r o u g h
p a y r o l l savings, banks, schools a nd b u s i n e s s a nd civic
groups.
Mr. N o l l e n e n t e r e d the e m p l o y of the B a n k e r s Life
C o m p a n y i n 1912 as a n actuary.
He was n a m e d P r e s i d e n t in
1 9 2 6 a nd since 19^5 h as s e r v e d as C h a i r m a n of the B o ard.
In a d d i t i o n to d e v o t i n g m u c h of his time and t a lent to the
i n s u r a n c e business, he h as b e e n p r o m i n e n t in p u b l i c w e l f a r e
and o t h e r civic a c t i v i t i e s in his h o m e cit y a nd state.

119

TREASURY DEPARTMENT
Washington
FDR RELEASE
Tuesday, May 1 , 1951

P ress s e r v ic e
No. S-2670

S e c r e ta r y o f the Treasury Snyder today made p u b lic d ata from the
report, S t a t i s t i c s o f Income fo r 1947. P a rt 1. compiled from in d iv id u a l
income ta x retu rn s and from ta x a b le fid u c ia r y income ta x r e tu r n s . These
data are prepared under the d ir e c tio n o f Commissioner o f In te r n a l Revenue
George J . Schoeneman.
IlfolVIDUAL RETURNS
This r e le a s e p resen ts s i x ta b le s compiled from in d iv id u a l income ta x
returns f i l e d fo r th e income year 1947. Each o f these ta b le s w i l l appear
in the p u b lish ed report which w i l l in clu d e a ls o ta b le s showing th e f r e ­
quency d is t r ib u t io n s o f re tu rn s by s iz e o f each s p e c i f i c source o f income
or lo s s , and a d i s t r ib u t io n o f retu rn s by number o f exemptions claim ed;
selected item s d is tr ib u te d by a d ju ste d gro ss income c la s s e s fo r each S t a t e ;
tax w ith h eld , ta x payments, and ta x refunds presen ted in d e t a i l ; c a p i t a l
gains and lo s s e s broken down in to the components o f s h o r t- and lo n g-term
gains an cU lo sse s; and th re e ta b le s prepared from the b u sin ess schedu les
submitted by s o le p r o p r ie to r s .

Comparative d a ta , in d iv id u a l r e tu r n s , 1947 and 1946
(Money fig u r e s in thousands o f d o lla r s )
I

Total in d iv id u a l re tu r n s :
Number o f retu rn s
Adjusted gross income
Taxable in d iv id u a l re tu r n s :
Number o f retu rn s
Adjusted gro ss income
Tax l i a b i l i t y
Nontaxable in d iv id u a l r e tu rn s :
Number o f retu rn s
With a d ju ste d gro ss income:
Number o f retu rn s
Adjusted gro ss income
With no a d ju ste d gro ss income:
Number o f retu rn s
__ Adjusted g ro ss d e f i c i t

1947

1946

In cre a se or
decrease ( - )
Number or: P e ramount
: cen t

55,099,008 52,816,547 2,282,461
150,295,275 134,330,006 15,965,269

4 .3 2
11.89

41,578,524 37,915,696 3,662,828
135,301,876 118,050,027 17,251,849
1 8 ,0 76 , 281 16,075,913 2,00 0,36 8

9 .6 6
14.61
12.44

13,520,484

14,900,¿351 -1 ,3 8 0 ,3 6 7

-9 .2 6

13,221,412
14,993,399

14,684,774 -1 ,4 6 3 ,3 6 2
16,279,979 -1 ,2 8 6 ,5 8 0

-9 .9 7
-7 .9 0

299,072
559,193

216,077
247,206

82,995 38.41
311,987 126.21

-

2

-

R eturns in clu d e d
The in d iv id u a l income ta x re tu rn s in clu d e d i n t h is r e le a s e are fo r
the calen d ar year 1947, a f i s c a l y e a r ending w ith in the p e rio d J u l y 1947
through June 1948, and a p a r t year w ith the g r e a te r p a r t o f th e account­
in g p erio d in 1947, The re tu rn s in clu d e Forms W-2 and 1040, f i l e d by
c i t i z e n s and r e s id e n t a l i e n s , and Form 1040B f i l e d by n o n resid en t a lie n s
h avin g a b u sin e ss w ith in the U n ite d S t a t e s . T e n ta tiv e re tu rn s are not
in clu d e d and amended re tu rn s are used o n ly i f the o r i g i n a l re tu rn s are
e x clu d e d . S t a t i s t i c s are taken from th e retu rn s as f i l e d , p r io r to
r e v is io n s th a t may be made as a r e s u l t o f a u d it.
Form W -2, the w ith h o ld in g statem en t fo r wages p aid and income ta x
w ith h e ld i s the o p tio n a l re tu rn w hich may be f i l e d b y persons whose
t o t a l income i s le s s than $5,000 c o n s is t in g o f wages showi thereon and
n o t more than $100 o f o th er w ages, d ivid en d s and i n t e r e s t . The ta x
l i a b i l i t y i s determined by the c o ll e c t o r o f in t e r n a l revenue on the b a sis
o f the income re p o rte d , i n accordance w ith a ta x ta b le provided under
Supplement T o f the .In te r n a l Revenue Code, w hich allo w s fo r exemptions
claim ed b y the taxp ayer and a ls o allow s fo r deductions and ta x c r e d it s
approxim ating 10 p e rce n t o f the incom e. Husband and w ife may f i l e a
combined re tu rn on Form W-2 i f t h e ir aggregate income meets the r e ­
quirem ents fo r use o f t h i s form . On such combined r e tu r n s , th e ta x as
determined by the c o ll e c t o r i s the le s s e r o f two amounts: the ta x on
the combined income or the aggrega te ta x on the sep arate incom es.
Form 1040, the r e g u la r income ta x r e tu r n , w hich may be e ith e r
a lo n g-fo rm re tu rn or a sh o rt-fo rm r e tu r n , i s used b y persons who, by
reason o f the s iz e or source o f t h e ir income, are n o t p erm itted to use
Form W-2 as a r e tu r n , and by persons who, alth o u gh e l i g i b l e to use
Form W-2, fin d i t to t h e ir advantage to use Form 1040. Persons w ith
a d ju s te d gro ss income o f le s s than $ 5 ,0 0 0 , r e g a r d le s s o f the s o u rc e ,
may e l e c t to f i l e the sh o rt-fo rm re tu rn on which deduction s and ta x
c r e d it s are n ot ite m iz e d , the ta x b ein g determ ined on the b a s is o f
a d ju ste d gro ss incom e, b y the taxp ayer from the ta x ta b le p ro vided
under Supplement T . Persons w ith a d ju ste d gro ss income o f $5,000 or
more, and persons w ith a d ju ste d gro ss income o f l e s s than $5,000 who
w ish to cla im deduction s in excess o f the amount allow ed through use
o f the ta x t a b l e , f i l e the lo n g-fo rm re tu rn and compute the ta x l i a ­
b i l i t y based on n e t income a f t e r a llo w ab le d e d u c tio n s .
For re tu rn s w ith a d ju ste d g ro ss income under $ 2 5 ,0 0 0 , the number
o f re tu rn s i s o btain ed from the reco rd s o f the In t e r n a l Revenue Bureau;
b u t the d is t r ib u t io n o f the re tu rn s by c la s s e s and th e r e la t e d d ata
to g e th e r w ith t h e ir d is t r ib u t io n by c la s s e s are estim a te d on the b a s is
o f samples as e x p la in e d on pages 4 and 5 .

- 3 -

120

S ta tu to r y p r o v isio n s a p p lic a b le to retu rn s fo r 1947
Returns fo r th e income y ear 1947 are f i l e d under th e p r o v isio n s
o f the In te r n a l Revenue Code as amended by the Revenue A c t o f 1945, the
Same p r o v isio n s as were in e f f e c t fo r th e previous y e a r .
Returns fo r a f i s c a l year begin n in g in 1947 and ending in 1948 are
s u b je c t to the law a p p lic a b le to ta x a b le years b egin n in g on Jan uary 1 ,
1947, as w e ll as t o the law a p p lic a b le to ta x a b le years b egin n in g on
January 1, 1948, the e f f e c t i v e date o f th e amendments co n tain ed in the
Revenue A c t o f 1948. A t e n t a t iv e ta x i s computed under each law , a f t e r
which th e t e n t a t iv e t a x fo r 1947 i s p ro rated a cco rd in g to the number o f
days in such f i s c a l year f a l l i n g in 1947 and th e t e n t a t iv e ta x fo r 1948
i s p ro rated acco rd in g to the number o f days f a l l i n g in 1948. The two pro­
rated ta x e s are combined to determine the ta x l i a b i l i t y , the amount o f
which i s ta b u la te d fo r s t a t i s t i c s . Amounts o th er than th e t a x l i a b i l i t y
tab u late d from these f i s c a l year re tu rn s are the amounts used i n compet­
ing the t e n t a t iv e ta x a p p lic a b le to the income year 1947.
C l a s s i f i c a t i o n o f retu rn s
For the ta b le s o f t h i s r e le a s e , in d iv id u a l retu rn s are c l a s s i f i e d
as ta x a b le and n ontaxable r e tu r n s , by a d ju ste d gro ss income c la s s e s , by
retu rn s w ith standard ded u ctio n or w ith item ized d e d u ctio n s, by m a r ita l
s ta tu s and by s e x , and by S t a t e s and T e r r it o r i e s . Taxable re tu rn s are
c l a s s i f i e d fo r types o f ta x l i a b i l i t y as retu rn s w ith normal ta x and
su rta x or retu rn s w ith a lt e r n a t iv e t a x .
A d ju sted gro ss income (o r d e f i c i t ) , b ein g common t o a l l typ es o f
r e tu rn s , su p p lie s the base fo r a d ju s te d gro ss income c la s s e s re g a r d le s s
o f the amount o f n e t income or n et d e f i c i t when computed. Returns w ith
ad ju sted gro ss d e f i c i t (d is r e g a r d in g the s i z e th e r e o f) are d e sig n a te d ,
"No a d ju s te d gross incom e,*1 and appear as the f i r s t a d ju s te d gro ss -income c la s s under n ontaxable r e tu r n s .
The c l a s s i f i c a t i o n o f retu rn s as ta x a b le and n ontaxable i s based
on the e x is te n c e or n o n existen ce o f a ta x l i a b i l i t y a f t e r ta x c r e d i t s ,
i f they are a llo w a b le .
Returns w ith standard d ed u ctio n are o p tio n a l r e tu r n s , Form W-2,
and sh o rt-fo rm r e tu r n s , Form 1040, w ith a d ju s te d gro ss income under
$5,000, on both o f which the ta x i s determ ined from th e ta x ta b le la n d
lon g-form r e tu r n s , Form 1040, w ith a d ju ste d gro ss income o f $5,000 or
more on which the $500 standard d ed u ctio n i s u sed .
Returns w ith item ized deduction s are lo n g -fo rm r e tu r n s , Form 1040,
on which nonbusiness d ed u ctio n s are item ized in d e t a i l ; lo n g -fo rm re­
tu rn s, Form 1040, w ith no d e d u c tio n s, f i l e d by spouses o f taxp ayers who
item ized ded u ctio n s (such spouses are denied th e standard d e d u c tio n );
and re tu r n s , Form 1040, w ith no a d ju ste d gro ss income whether or n ot
deductions are ite m iz e d .

- 4 Returns with normal tax and surtax consist of (l) the optional
returns, Form W-2, and short-form returns, Form 1040, wherein the
optional tax is paid in lieu of normal tax and surtax, and (2 ) longform returns, Form 1040, on which the regular normal tax and surtax
are reported — that is, all taxable long—form returns except those
on which the alternative tax is imposed.
Returns with alternative tax are long-form returns, Form 1040,
wherein (l) the net income includes an excess of net long-term capital
gain over net short-term capital loss, and (2) the alternative tax is
less than the regular normal tax and surtax computed on net income
which includes thenet gain from sales of capital assets. Alternative
tax (not effective on returns with surtax net income under $18,000) is
the sum of (l) a partial tax computed at the regular normal tax and sirtax rates on net income reduced for this purpose by the excess of net
long-term capital gain over net short-term capital loss and (2) fifty
percent of such excess.
Returns are classified according to. the marital status of the tax­
payer on the last day of the taxable year, or on the date of the death
of a spouse. There are four groups: joint returns, separate returns
of husbands and wives, separate community property returns, and returns
of single persons. Except for the joint returns, each group is sub­
divided into returns of men and returns of women.
The segregation of returns by States and Territories consists of
the 48 States, Hawaii, and the District of Columbia. The segregation
is based on the collection district in which the return is filed, except
that for the District of Columbia, the segregation is determined by the
address of the taxpayer. Collection districts, or groups of such dis­
tricts, are coextensive with the States and Territories, except that
the District of Columbia comprises a part of the collection district of
Maryland and the Territory of Alaska is a part of the collection dis­
trict of Washington. The sampling technique employed does not permit
the separate tabulation of returns showing an Alaskan address.

Description of the sample and limitations of data
Data in tables 1 - 5 in this release are derived from a basic strati
fied random sample of individual income tax returns designed to comprise
1 percent of returns, Form W-2 and Form 1040, with adjusted gross income
under $7,000$ 10 percent of returns, Form 1040, with adjusted gross in­
come from $7,000 to $10,000; 20 percent of returns, Form 1040, with ad­
justed gross income from $10,000 to $25,000; and 100 percent of returns,
Form 1040, with adjusted gross income of $25,000 or more. The different
administrative processes applied to the various categories of returns in
collectors1 offices affected somewhat their availability for sampling.
These categories were sufficiently heterogeneous with respect to data

121
- 5 tabulated to warrant independent controls* Accordingly, returns in
each of the above income ranges were further stratified to assure homo­
geneous groups subject to uniform administrative processing for sample
selection, tabulation, and weighting purposes* Precise 1 percent, 10
percent, and 20 perQent representation of returns with adjusted gross
income under $7,000, from $7,000 to $10,000, and from $10,000 to $25,000,
respectively, was not achieved. However, the over-all universes, appli­
cable to the separate sampling strata, were independently determined
and the data tabulated from the samples were extended to such universes,
so that no random sampling error attaches to the total number of returns
in each income range. A relatively negligible error in the total num­
ber of returns does result,, however, from the use of rounded extension
factors *
In computing the possible variation of a given frequency due to
random sampling, a range of two standard errors was used; chances are
19 out of 20 that the frequency as estimated from the sample tabulation
differs from the actual frequency, if the entire universe were tabulated,
by less than twice the standard error. Variation beyond the two-error
limit would occur only 1 time in 20 and would be sufficiently rare to
justify a two-error range in defining sampling variability. Accordingly,
in cells associated with taxable or nontaxable adjusted gross income
classes under $7,000 frequencies of the magnitude of 1 million or more
are subject to variation of less than 3 percent; variation for lesser
frequencies increases to a maximum of 10 percent at 100,000, and a maxi­
mum of 30 percent at 10,000* In cells associated with adjusted gross
income classes from $7,000 to $25,000, frequencies of the magnitude of
100,000 or more are subject to less than 2.6 percent variation; variation
for lesser frequencies increases to a maximum of 10 percent at 10,000,
and a maximum of 28 percent at 1,000.
Data in table 6, distributed by States and territories, are derived
from the basic sample described above, except that the returns with no
adjusted gross income are excluded since the sampling variability is too
great to permit their presentation on a State basis. The aggregate data
relative to returns with adjusted gross income by States in table 6 do
not precisely agree with corresponding United States totals in tables 1
and 2. Minor discrepancies occur as a result of (a) the dual system of
weighting, involving one series of weights uniformly applicable to all
collection districts for the national distributions and independent
series of weights for each collection district for the State distributions,
and (b) the use of rounded weighting factors.

-

6

-

taxable: f i d u c i a r y r e turns

Table 7, in this release, compiled from the taxable fiduciary
income tax returns for the income year 1947, -will be included in the
published report together with other tables showing varied data re­
ported by fiduciaries on returns for estate» and for trusts«
Comparative data, taxable fiduciary returns, 1947 and 1946
(Money figures in thousands of dollars)

dumber of returns
Total income
Net income taxable to fiduciary
Tax liability

•
«

•
•

; 1947

;

1946

109,997
121,725
973,583 1 ,065,765
509,244
594,924
173,071
205,457

Decrease
dumber orjp
.
amount
11,728
9.63
92,182
8.65
85,680
14.40
32',386
15.76

The taxable fiduciary returns included in statistics are for the
calendar year 1947, a fiscal year ending within the period July 1947
through June 1948, and a pafrt year with the greater portion of the ac­
counting period in 1947. Ah exiguous number of taxable returns for es­
tates and trusts are filed improperly on Form 1040, however, the data
thereon was edited to conform to that reported on Form 1041. Tentative
returns are not included and amended returns are used only if the origi­
nal returns are excluded. Statistical data are completely tabulated
from each taxable fiduciary return, prior to audit.
Although only the taxable fiduciary returns are included in statis­
tics, nevertheless a return is required to be filed for an estate if
the gross income is $500 or more; for a trust if the net income is $100
or more, or if the gross income is $500 or more, regardless of the net
income; and for every estate or trust of which any beneficiary is a
nonresident alien.
The rates of tax, the provisions respecting gross income to be
reported, the deductions with certain exceptions, and the tax credits
provided for individuals apply also to income of estates and trusts.
Deductions for contributions without limitations and for amounts dis­
tributable to beneficiaries are allowable in computing the net income
on which the fiduciary is to be taxed. An estate is allowed an ex­
emption of $500 and a trust is allowed an exemption of $100 against
net income for the purposes of both the normal tax and the surtax. The
tax, not subject to current collection, is due when the return is
filed, after the close of the year.

Table 1,

Simple distribution
{■ercent
of
total

1
2
3
4
S
6

7
8

9
10

11
12

IS
14
15
16
17
18
19
20
21

4,315,873
2,641,657
2,796,327
5,126,496
5,236,582
3,590,360
3,767,236
3,864,644
3,741,406
5,559,458
3,286,787
5,481,593
3.681.143
2,588,545
1.498.144
1,338,066
666,836
381,903
259,931
190,849
146,007

7.88
4.82
5.10
5.71
5.91
6.55
6.87
7.05
6.83
6.50
6.00
10 .0 0

6.72
4.56
2.73
2.44
1.22

.70
.47
.35
.27

22

112,101

.20

23
24
25
26
27
28
29
30
31
52
35
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49

92,429
73,283
63,141
201,300
102,586
57,624
60,238
28,920
15,659
9,458
8,095
4,039
2,818
6,353
2,057
901
459
425
233
218
84
64
23
12

.17
.15

8

1

.12

.37
.19
.11
.11

.05
.03
.02
.01
.01
.01
.01

(6)
(6)
( 6)

(6)
(6 )
( 6)
(6)
(6)
( 6)
(6)
(6)
(6)
(6)

Individual returns for 1947, by adjusted gross ineoms classes! Simple and cumulative distributions of number of returns,
adjusted gross Income, and tax liability, with corresponding percentage distributions

(Adjusted gross Income classes and money figures In thousands of dollars)
Adjusted gross Income 2/
Cumulative distri­
Cumulative distri­
Simple distribution
bution from highest
bution from lowest
income class
income class
Percent
Percent
Percent
Amount
Amount
of
Amount
of
of
total
total
total

Number of returns
Cumulative distri­
bution from highsst
income class
Percent
Number
of
total

Cumulative distri­
bution from lowest
income class
Percent
Number
of
total

54,799,956
50^484,065
47,842,426
45,046,099
41,919,605
38,683,021
SS,092,661
31,325,425
27,460,781
23,719,375
20,159,917
16,873,130
11,591,757
7,710,594
5,322,051
3,823,907
2,485,841
1,819,005
1,437,102
1,177,171
986,322
840,315
728,214
635,785
562,502
499,361
298,061
195,675
138,051
77,813
48,893
33,234
23,796
17,701
13,662
10,844
4,491
2,434
1,533
1,074
649
416
198
114
50
27
IS
7
6

4,315,873
6,957,510
9,753,837
12,880,335
16,116,915
19,707,275
23,474,511
27,339,155
31,080,561
34,640,019
57,926,806
43,408,199
47,089,542
49,477,885
50,976,029
52,314,095
52,980,931
53,362,834
53,622,765
53,813,614
53,959,621
54,071,722
54,164,151
54,237,434
54,300,575
54,501,875
54,604,261
54,661,885
54,722,123
54,751,043
54,766,702
54,776,140
54,782,235
54,786,274
54,789,092
54,795,445
54,797,502
54,798,403
54,798,862
54,799,287
54,799,520
54,799,738
54,799,822
54,799,886
54,799,909
54,799,921
54,799,929
54,799,930
54.799.936

100.00
92.12
87.50
82.20
76.50
70.59
64.04
57.16
50.11
43.28
36.79
30.79
20.79
14.07
9.71
6.98
4.54
3.32
2.62
2.15
1.80
1.55
1.33
1.16
1.03
.91
.54
.36
.25
.14
.09
.06
.04
.03
.02
.02
.01
(6)
(6)
(6)
(6)
(6)
(6)
(6)
(6)
(6)
(6)
(6)
(6)

7.88
12.70
17.80
25.50
29.41
35.96
42.84
49.89
56.72
63,21
69.21
79.21
85.95
90.29
93.02
95.46
96.68
97.38
97.85
98.20
98.47
98.67
98.84
98.97
99.09
99.46
99.64
99.75
99.86
99.91
99.94
99.96
99.97
99.98
99.98
99.99
99.99
99.99
99.99
99.99
99.99
99.99
99.99
99.99
99.99
99.99
99.99
99.99
100.00

1,169,815
1,650,009
2,448,024
5,519,455
4,451,498
5,831,588
7,061,565
8,207,645
8,880,434
9,338,192
9,441,984
17,732,690
15,743,740
10,137,810
7,091,760
7,271,956
4,299,428
2,853,596
2,200,807
1,807,852
1,528,747
1,286,555
1,155,377
987,584
914,602
3,455,452
2,276,347
1,571,575
2,067,030
1,284,874
853,055
609,146
455,014
541,894
266,643
759,938
352,644
200,113
125,243
145,789
103,466
129,747
72,064
77,657
38,963
26,894
26,354
4,958
40.120

.78
1.10
1.63
2.54
2.96
3.88
4.70
5.46
5.91
6.21
6.28
11.80
9.14
6.75
4.72
4.84
2.86
1.90
1.46
1.20
1.02
.86
.77
.66
.61
2.30
1.51
1.05
1.38
.85
.57
.41
.30
.23
.18
.51
.23
.13
.06
.10
.07
.09
.05
.05
.03
.02
.02
(6)
.03

150,295,275

150,295,275
149,125,458
147,475,449
145,027,425
141,507,970
137,056,472
131,225,084
124,165,519
US, 955,874
107,075,440
97,737,248
88,295,264
70,562,S74
56,818,834
46,681,024
39,589,264
32,317,308
28,017,880
25,164,284
22,963,477
21,155,645
19,626,898
18,340,345
17,186,966
16,199,582
15,284,980
U, 829,528
9,553,181
7,981,606
5,914,576
4,629,702
3,776,647
3,167,501
2,712,487
2,370,593
2,103,950
1,344,012
991,368
791,255
666,012
520,225
416,767
287,010
214,946
137,289
98,326
71,452
4S,078
40.120

100.00
99.22
98.12
96.49
94.15
91.19
87.51
82.61
77.15
71,24
65.03
58.75
46.95
57.80
31.06
26.34
21.50
18.64
16.74
15.28
14.08
13.06
12.20
11.44
10.78
10.17
7.87
6.36
5.31
3.94
3.08
2.51
2.11
1.80
1.58
1.40
.89
.66
.55
.44
.35
.28
.19
.14
.09
.07
.05
.03
.03

1,169,815
2,819,824
5,267,848
8,787,305
13,238,801
19,070,189
26,131,754
34,339,399
43,219,833
52,558,025
62,000,009
79,732,699
93,476,439
103,614,249
110,706,009
117,977,965
122,277,393
125,130,989
127,531,796
129,139,628
130,668,575
151,954,950
133,108,307
134,095,691
135,010,293
138,465,745
140,742,092
142,313,867
144,380,697
145,665,571
146,518,626
147,127,772
147,582,786
147,924,680
148,191,323
148,951,261
149,303,905
149,504,018
149,629,261
149,775,050
149,878,516
150,008,263
150,080,327
150,157,984
150,196,947
150,223,841
150,250,195
150,255,153
150.295.275

.78
1.88
3.50
5.85
8.81
12.69
17.39
22.85
28.76
34.97
41.25
53.05
62.20
68.94
73.66
78.50
81.56
83.26
84.72
85.92
86,94
87.80
88.56
89.22
89.83
92.13
93.64
94.69
96.06
96,92
97,49
97.89
98.20
98.42
98.60
99.11
99.34
99.47
99.56
99.65
99.72
99.81
99.86
99.91
99.93
99.95
99.97
99.97
100.00

50

100,00

-

-

-

100.00

-

-

-

-

51

(?)

-

-

-

-

8/559,193

(7)

-

-

-

-

(7)

-

-

-

a. 9/149,756,082

(7)

-

-

-

-

52

55,099,006

JZ_

Simple distribution
Amount

Percent
of
total

Cumulative distri­
bution from highest
income class
Percent
Amount
of
total

18,076,281
18,056>094
17,976,674
17,829,744
17,588,887
17,255,946
16,744,161
16,139,480
15,452,554
14,709,412
15,941,726
12,457,555
11,174,820
10,180,672
9,413,199
8,542,768
7,958,065
7,550,432
7,174,562
8,862,534
6,583,251
6,334,964
6,101,623
5,892,387
5,690,149
4,839,698
4,183,050
3,671,972
2,917,877
2,394,284
2,019,735
1,736,456
1,516,147
1,544,637
1,207,834
796,744
594,816
477,228
401,844
515,450
254,012
176,312
131,263
82,748
59,011
41,381
26,884
24.802

Cumulative distri- '
bution fron lowest
incoa« cíasa
Percent
Amouxrt of
total

1
2
S
4
5

20,188
79,420
146,930
240,857
554,941
489,785
604,681
687,126
742,942
767,686
1,504,391
1,262,715
993,948
767,473
870,431
584,705
427,631
356,070
511,828
279,283
248,287
233,341
209,236
202,258
850,451
656,648
511,078
754,095
523,593
374,549
283,279
220,309
171,510
136,803
411,090
201,928
117,588
75,384
86,394
61,438
77,700
45,049
48,515
'23,737
17,630
14,497
2,082
24.802

.11
.44
.81
1.33
1.96
2.71
3.35
3.80
4.11
4.25
8.32
6.99
5.50
4.25
4.82
3.23
2.57
1.97
1.73
1.55
1.37
1.29
1.15
1.12
4.70
3.63
2.83
4.17
2.90
2.07
1.57
1.22
.95
.76
2.27
1.12
.65
.42
.48
.34
.43
.25
.27
.13
.10
.08
.01
.14

18,076,281

100.00

-

-

-

- 50

-

-

-

-

-

SI

18,076,281

100.00

-

-

-

- 52

100.00
20,188
99.89
99,608
99.45
246,558
487,395
98.64
842,336
97.30
95.34
1,882,121
92.65
1,936,802
2,623,928
89,29
85.48
3,366,870
81.37
4,134,556
5,638,947
77.13
6,901,662
68.80
61.82
7,895,610
58.52
8;663,083
52.07
9,533,514
47,26 Í0,U8,219
44.02 10,545,650
41.66 10,901,920
59.69 '11,213,748
87.96 11,498,031
36.42 11,741,318
35.05 11,974,659
35.75 12,185,895
32.80 12,586,133
31.48 15,236,584
26.77 15,893,252
23.14 14,404,310
20.31 15,158,405
16.14 15,681,998
13.25 16,056,547
11.17 16,339,826
9.61 16,560,135
8.59 16,731,645
7.44 16,868,448
6.68 17,279,538
4.41 17,481,466
3.29 17,599,054
2.64 17,874,458
2.22 17,780,832
1.75 17,822,270
1.41 17,899,970
.98 17,945,019
.75 17,993,534
.46 18,017,271
.53 18,034,901
.23 18,049,398
.15 18,051,480
.14 18.076.281

.U
.55
1.36
2.70
4.66
7.37
10.71
14.52
18.63
22.87
51.20
38.18
43.68
47.93
52.74
55.98
58.54
60.31
62.04
63,58
64.95
66.25
67.40
68.52
75.25
76.86
79.69
83.86
86.75
88.85
90.59
91.61
92.56
93.52
95.59
96.71
97.36
97.78
98.25
98.59
99.02
99.27
99.54
99.67
99.77
99.85
99.86
100.00

For footnotes, see pp.22 - 24} for extent to which data are estimated, see pp. 4-5.

6

7
8

9
10

11
12

IS
14
15
16
17
18
19
20

21
22

23
24
25
26
27
28
29
50
31
52
S3
54
55
56
37
38
39
40
41
42
43
44
45
46
47
48
49

I

ro
IV)

T&ble 2. - Individual returns for 1947, by taxable and nontaxable returns and by adjusted gross inccrae classes — Part I, all returns; Part II, returns with standard deduction} Part III,
returns with itemized deductions: Number of returns, income or loss from each of the sources comprising adjusted gross income, adjusted gross income, deductions, exemption, tax
liability, tax payments, and tax overpayment
PART I. - ALL RETURNS

Adjusted gross incane classes 1/

1
2
3
4
5
6
7
8
9
10

11
12

13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
50
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67

68

Taxable returns:
0.5 under 0.75
0.75 under 1
1 under 1.25
1.25 under 1.5
1.5 under 1.75
1.75 under 2
2 under 2.25
2.25 under 2.5
2.5 under 2.75
2.75 under 3
3 under 3.5
3.5 under 4
4 under 4.5
4.5 under 5
5 under 6
6 under 7
7 under 8
8 under 9
9 under 10
10 under 11
11 under 12
12 under 13
13 under 14
14 under 15
15 under 20
20 under 25
25 under 30
30 under 40
40 under 50
50 under 60
60 under 70
70 under 80
80 under 90
90 under 100
100 under 150
150 under 200
200 under 250
250 under 300
300 under 400
400 under 500
500 under 750
750 under 1,000
1.000 under 1,500
1,500 under 2,000
2.000 under 3,000
3.000 under 4,000
4.000 under 5,000
5.000 and over
Total taxable returns
Nontaxable returns: 33/
No adjusted gross Income
Under 0,5
0,5 under 0.75
0.75 under 1
1 under 1,25
1.25 under 1.5
1.5 under 1.75
1.75 under 2
2 under 2.25
2.25 under 2.5
2.5 under 2.75
2.75 under 3
3 under 3.5
3.5 under 4
4 and over
Total nontaxable returns
Grand total

5/

Taxable returns with adjusted1gross
income under $5,000 and nontaxable
returns
Taxable returns with adjusted gross
income of $5.000 and over

"To'tai
Salaries
number of and
wages 10/
returns
1,261,473
708,966
1,529,096 1,158,503
1,889,017 1,836,502
2,289,470 2,715,107
2,585,606 3,701,481
3,074,404 5,094,445
5,112,744 5,916,099
3,326,367 7,030,070
3,125,412 7,369,189
3,046,291 7,843,995
5,140,000 14,887,935
3,555,846 11,682,203
2,320,747 8,435,317
1,498,144 5,843,904
1,338,066 5,307,296
666,836 2,689,778
381,903 1,543,221
259,931 1,081,734
190,849
832,912
146,007
688,694
112,101
527,863
92,429
480,446
75,283
389,029
63,141
352,814
201,300 1,335,786
102,386
827,647
57,624
552,927
60,238
693,060
28,920
396,808
15,659
250,044
9,438
169,682
6,095
121,625
4,039
88,172
2,818
65,854
6,353
169,356
2,057
62,296
901
29,497
459
16,315
425
13,428
233
8,866
218
6,119
84
2,653
64
2,239
23
134
12
520
8
117
1
66
6
64

Annuities
Rents and royalties 14/
Dividends 11/ Interest 12/ and
pensions 13/
12,309
22,227
31,054
38,996
38,309
45,732
49,936
48,792
51,542
49,466
101,250
101,057
88,771
77,777
153,881
124,997
124,309
113,214
99,023
88,529
85,771
80,841
74,564
73,783
307,659
239,536
181,538
280,541
198,734
152,939
118,390
97,155
75,722
66,636
202,748
117,895
67,556
41,746
55,036
35,346
48,857
28,642
34,153
12,469
9,160
8,283
53
19.953

9,037
16,220
19,671
23,777
24,271
30,664
28,878
29,555
28,491
29,554
52,265
44,784
39,388
31,160
57,041
44,027
36,948
33,322
29,723
23,777
21,577
20,535
18,096
16,917
66,414
44,091
32,680
44,796
28,295
18,991
14,115
10,226
8,271
6,459
17,709
8,477
4,756
2,889
2,705
2,308
3,005
1,102
1,667
1,193
408
85
2.808

-

18,482
28,059
35,781
47,527
55,135
60,752
64,525
67,241
61,317
67,010
129,717
114,333
91,873
79,426
114,786
97,611
68,374
58,104
53,485
42,779
38,416
35,282
30,357
29,171
100,992
69,310
44,476
60,684
37,370
25,687
18,866
12,817
10,275
7,603
20,541
7,725
6,348
2,834
3,521
3,036
2,704
1,338
1,290
670
55
1
3
16

10,156
13,041
14,920
13,410
12,894
7,191
6,251
2,833
3,027
1,438
1,151
1,356
2,240
540
1.834

502
3,607
5,793
6,130
8,418
3,497
3,062
1,585
(34)
1,519
(34)
(34)
(34)
(34)
(34)

26,579
43,155
40,354
40,555
39,847
21,516
18,745
13,202
12,686
7,187
8,563
5,704
8,658
5,928
7.285

-

299,072
4,315,873
1,380,164
1,267,231
1,237,479
947,112
1,004,754
692,832
751,900
415,039
434,046
240,496
341,393
125,297
67.796

67,076
1,037,879
613,173
796,233
966,911
984,646
1,250,773
1,033,355
1,260,349
811,405
951,258
580,551
918,513
381,172
219.678

16,819
13,837
14,795
12,469
12,819
9,768
6,829
5,136
4,327
2,802
2,623
2,131
4,109
1,286
8.564

¿1,¿75,loi

96,096,¿86

875,530

499,997

5,823,907

18,707,062

3,419,659

625,413

- a: fo
T94V7 uy T'"

3,423
7,354
11,558
14,115
13,827
13,153
11,645
8,072
6,733
7,548
13,106
9,696
6,970
3,803
8,465
4,979
4,757
4,210
2,966
2,420
2,066
1,836
1,609
1,498
5,759
3,159
2,514
3,660
2,197
1,402
1,078
690
840
620
1,600
618
293
280
84
69
357
27
99
(3S)
133

16o,547 ^L,22Ï,142'" '
60,285

1,006,527

Business and
profession 15/

1,823
48,200
2,196
69,006
3,767
158,095
5,052
224,755
6,018
277,905
8,777
381,471
11,182
388,629
10,429
499,406
10,160
467,923
14,240
520,428
22,061
979,449
15,552
869,483
11,894
776,951
8,606
720,581
11,036 1,040,866
5,451
843,633
5,340
662,907
3,506
540,824
3,489
465,636
2,128
378,751
1,966
339,555
1,612
288,943
1,191
245,163
1,195
227,963
5,228
790,126
4,151
485,497
2,280
303,832
3,042
359,816
1,638
202,289
1,156
111,621
867
74,422
48,992
774
475
34,791
411
25,070
983
55,609
488
18,237
264
11,330
87
7,699
209
4,270
105
2,652
415
4,339
120
2,428
81
2,023
59
673
26
2,988
115

«

2,264
4,053
6,202
14,194
11,160
15,115
12,305
13,727
13,819
12,921
24,386
18,997
14,124
9,395
17,259
U, 093
9,691
7,927
8,608
5,767
5,577
5,641
5,972
5,260
22,397
13,722
9,972
13,457
9,449
7,059
5,381
3,895
3,407
2,225
7,432
4,730
2,459
1,576
1,905
1,140
2,357
757
592
338
450
273
30
25

23,845
8,476
2,989
3,745
3,642
2,557
•3,046
1,999
2,384
1,827
927
697
1,863
573
(34)

10,078
95,729
130,504
221,746
296,957
247,216
287,185
209,934
270,501
138,485
151,061
83,589
141,632
66,432
64.296

519,812
43,534
15,582
16,753
15,239
12,531
9,738
6,884
7,228
6,261
6,708
1,406
1,754
(34)
4.241

•
-

Sales or exchianges
of capital assets 17/

Partnership 16/

12,268
20,752
39,671
62,250
73,682
108,773
114,455
158,818
159,471
174,485
346,966
332,651
270,310
248,392
442,802
356,071
313,458
284,968
253,784
236,155
214,204
197,341
182,334
170,062
678,497
482,156
357,476
476,785
311,545
206,535
145,359
107,030
77,074
54,701
145,297
52,200
23,710
13,998
13,778
6,246
9,434
4,425
229
131
..

3,475
718
4

946
1,815
3,664
2,620
1,913
2,980
3,586
4,518
3,697
3,072
6,560
6,550
4,164
3,368
8,760
2,989
4,449
3,778
4,104
3,042
2,155
2,252
2,131
l)722
6,966
5)047
3,509
4)645
2,931
1,994
•1,830
1,405
1,139
1,088
1,702
995
587
766
554
342
255
133
73
7
94
-

12

4,835
9,153
13,935
25,168
27)241
34¡252
41,146
50,548
50,353
56,528
115,402
114,175
96,833
79,732
122,898
101,739
78,863
66)084
55,518
46,548
40,332
34,823
31,769
29,873
112,066
79)493
56)180
84,273
61,027
50,649
39,549
34,768
28,988
22,323
89,374
51,003
34)517
22^913
37,026
32,605
36)774
16,182
26,448
8,761
6,300
14,460
4,147
13)123

16,797 143,121
42,195
14,828
8,131
11,981
18'038
2,464
9,970
24,179
2,753
12,627
26,937
3,396
15,800
28,500
3,112
9,840
2,178
38,398
9,476
25,395
1,942
8,189
32,170
082
10,393
20,079
(34)
5,491
18,105
(34)
7,263
11,133
(34)
3,060
13,913
(34)
6,805
7,481
(34)
2)347
7,707
(34)
6.151
"170)5
L.nsOin 8.¿S-¿ag
S,455.237

Z,

lÍ0,9Ü3

8,797,627

841,087

2,426,604

59,888

7,582,945

197,825

5,822,980

'•¿ys.zii
223,822

2,347

2,452
3)685
5,892
6,193
7,677
8,095
8,959
7,883
8,554
15,025
13,187
12,481
7,995
15,215
11,508
9,957
8,631
7,713
6,273
5,514
5,014
4,146
3,897
15,067
9,120
6,193
7,471
3,879
2,368
1,580
992
658
522
1,133
401
184’
91
69
37
38
22
18
4
3

18,281
12,370
5,691
4)207
3,694
3,107
2,366
1,393
2,043
1,358
1,446
1,280
'847
518
846;
5025“

6

7
8

9
10
11
12

13
14
15
16
17
18
19
20
21
22

23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
S3
54
55
56
57
58
59
60
61
62
63
64
65
66

880,889

71,456 1,571,402

1
2
3
4
5

S7
227,718

58

income under .$5,000 and nontaxable
returns
Taxable returns -with adjusted gross
income of $5, OOP and over
p.22 - 24s

TsCbTS

2. — Tndiv
•art XIX, retu
xonptlon, tax

1,22.1,142
3,823,907

18,707,062.

3,419,659 |

625,413

1,006,527

1

190,903

I

59,888

2,426,604 J 223,822

""ooO^oo!

5,821,980 1 71,456. 1,571,402

1947, try ta

lllty, tax
PART I. — A LL RETURNS — Continued

Adjusted gross income classes

1/

Taxable returns:
0.5 under 0.75
0.75 under 1
1 under 1.85
1.85 under 1.5
1.5 under 1.75
1.75 under 8
8 under 8.85
8.85 under 8.5
8.5 under 8.75
8.75 under 5
5 under 5.5
3.5 under 4
4 under 4.5
4.5 under 5
5 under 6
6 under 7
7 under 8
8 under 9
9 under 10
10 under 11
11 under 18
18 under IS
13 under 14
14 under 15
15 under 80
80 under 85
85 under 30
50 under 40
40 under 50
50 under 60
60 under 70
70 under 80
80 under 90
90 under 100
100 under 150
150 under 800
800 under 850
850 under 300
300 under 400
400 under 500
500 under 750
750 under 1,000
1,000 under 1,500
1,500 under 8,000
2,000 under 3,000
3,000 under 4,000
4,000 under 5,000
5,000 and over
Total taxable returns
Nontaxable returns: 35/
No adjusted gross inecue 5/
Under 0.5
0.5 under 0.75
0.75 under 1
,1 under 1.85
1.85 under 1.5
1.5 under 1.75
1.75 under 8
8 under 8.85
8.85 under 8.5
8.5 under 8.75
2.75 under 3
3 under 3.5
3.5 under 4
4 and over
Total nontaxable returns
Grand total
Taxable returns with adjusted gross
Incone under $5,000 and nontaxable
returns
Taxable returns with adjusted gross
income of $5,000 and over

^Aaiusuea gre
Sales or exchanges of
property other than Incone frora Miscellaneous Adusted
gross
estates and income 20/
capital assets 18/
Net gain Net loss trusts 19/
income 2/
(54)
(34)
1,087
1,868
8,384
1,734
8,504
8,835
3,897
3,180
8,855
4,587
5,745
3,805
8,066
6,646
3,066
8,878
1,784
1,865
1,158
1,098
1,018
817
3,878
8,060
967
1,340
568
476
899
818
109
95
185
56
78
(35)
119
15
8
17
1
8
'W.7iff
4,013
1,177
786
1,357
1,580
1,119
8,195
1,681
8,805
1,366
(34)
(34)
1,034
(34)

(34)
8,810
(54)
3,989
484
6,885
.,357
5,659
.,975
8,503
7,596
L.404
1.403
9,797
2.181
18,088
10,651
1,645
.,613
10,708
5,163
81,861
2,088
85,068
2,098
88,634
15,938
.,840
2,805
48,033
.,781
39,660
2,045
38,847
.,301
88,390
.,789
87,430
.,861
87,900
1,888
83,774
.,845
81,580
475
81,606
568
18,995
2,535
88,187
1,570
65,587
.,143
54,088
.,808
83,015
1,480
60,334
693
44,196
54,959
705
307
87,164
838
88,577
145
80,879
67,368
675
360
40,139
165
84,960
57
18,944
138
18,564
78
13,804
79
81,810
S3
lè,150
5
10,864
—
15,389
•
7,899
81
817
* 69
4.175
4775« 11"'2S7.S’47
56,080
6,316
8,383
1,889
1,400
1,084
1,573
1,199
753
34)
34)
34)
34)
54)
54)

$1.385 ---- 7!
183.083
101.134
68,946
96,419
38,195

86,669

6,045
819,139
8,838 1,533,008
18,005 8,148,319
17,799 3,147,308
17,194 4,818,613
18,946 5,761,567
81,507 6,618,551
87,160 7,894,705
86,159 8,198,584
30,515 8,758,958
51,551 16,637,165
35,781 13,877,445
35,540 9,885,570
18,445 7,091,760
88,898 7,871,956
83,111 4,899,488
16,387 8,853,596
18,886 8,800,807
11,814 i 1,807,838
9,798 1,588,747
8,877 1,886,555
6,481 1,153,377
5,756
987,384
5,348
914,608
-8,940 3,455,458
11,678 8,876,347
7,990 1,571,575
9,477 8,067,030
5,030 1,$84,874
3,785
853,055
8,788
609,146
455,014
1,700
341,894
998
866,643
1,391
8,137
759,938
358,644
975
787
800,113
185,845
196
187
145,789
888
103,466
189,747
91
185
78,064
11
77,657
8
38,963
8
86,894
18
86,354
1
4,958
190
40.180

Tax
Amount of
exemption 21/ liability 3/ withheld

630,757
764,548
1,136,468
1,586,591
1,866,197
8,588,767
8,664,684
3,356,597
3,314,947
5,675,375
6,743,148
5,048,331
3,458,998
8,849,343
1,963,635
936,981
586,984
358,786
856,718
196,593
148,801
188,819
96,838
88,845
868,919
151,861
78,604
73,641
33,989
17,767
10,416
6,575
4,839
8,906
6,863
1,905
798
396
381
185
158
68
56
85
9
7
8
6

582.567 iss;,sm.s7é ''ir . T R . w

5,399
8,088
1,785
3,174
8,886
1,758
1,138
1,180
8,069
(34)
(34)
(34)
(34)
(34)
(34)
83,434
1.830.681
187,488

4,338
11,385
9,984
11,851
13,783
11,484
13,635
11,048
10,797
5,670
7,348
4,857
4,803
3,808
3.881

8/559.195
1,169,815
830,870
1,115,088
1,371,136
lj304,196
1,618,775
1,899,998
1,595,094
985,789
1,139,668
689,038
1,095,585
466,895
318.840
12059 3/0.454.806
649.686 »1491736.088
453,535 yiiop.46,ai6

1,043,844

196,083 39,589,864

For footnotes, see pp.2 2 - 24; for extent to which data are estimated, see pp. 4-5.

Overpayment
Payments on Tax due at (refund, or
1947 decla- time of
credit on
ration 22/ filing
1948 tax)

80,188
61,514
8,548
3,408
79,480
107,434
6,318
11,758
166,850
11,986
19,931
146,930
840,857
858,884
17,345
89,886
354,941
357,093
83,571
36,848
489,785
46,089
489,986
31,888
53,458
604,681
589,968
36,914
60,879
687,186
671,376
44,310
748,948
64,688
713,804
48,364
767,686
735,688
SI,807
69,414
1,504,391 1,414,088
108,836
141,985
1,868,715 1,149,704
100,643
187,159
111,909
993,948
871,637
98,638
767,473
639,414
91,115
95,557
687,581
870,431
166,887
148,985
584,705
340,994
156,074
184,895
487,631
805,850
149,009
103,983
356,070
149,448
138,688
98,786
133,899
511,888
118,168
81,794
100,718
78,066
879,883
184,118
848,887
78,056
119,577
66,056
60,878
78,006
114,895
833,341
59,385
55,593
809,836
106,770
808,838
55,164
53,931
105,384
813,886
850,451
464,018
818,014
656,648
137,551
388,598
165,980
511,078
94,595
310,031
185,338
754,095
478,500
181,795
178,145
583,593
71,438
348,589
118,066
374,549
45,551
856,365
88,888
883,879
31,310
196,888
61,638
880,309
88,883
155,697
48,511
188,600
171,510
16,546
35,870
99,878
156,803
18,335
87,887
306,061
411,090
30,905
88,156
801,988
10,858
157,106
37,716
117,588
88,158
5,555
98,856
75,384
3,150
61,486
18,854
86,394
69,576
15,948
8,358
61,438
1,684 1 50,839
9,658
77,700
1,046
68,479
15,756
396
40,688
45,049
4,745
388
48,515
41,538
6,795
83,737
8
80,336
3,637
17,650
70
15,334
8,888
14,497
11,183
81
3,654
8,088
18
88
1,988
84.808
10
17.674
7.118
118.076.881 Iió.óél.i4( ' S.1)&>.923 $.0lÌ.49Ì
_

5727551
18.076,881 11.885.831
8,663,083 8,594,866

5.818.330 3.018.491
878,803
736,364

40,581
91,740
37,893
36,410
38,474
31,434
87,516
24,193
29,455
16,803
19,665
11,122
18,890
8,781
9;i43
450.100
1.974.376
1,559,754

5,509,756

9,413,199 8,631,567

5,075,967 8,140,891

434,684

'

«p

-

35,085
7,571
4,346
4,358
4,381
5,497
3,885
8,683
8,440
1,486
1,470
1,108
1,485
978
8.880

1,2a

677
1,582
779
195
844
56
361
1.524.8*^6

344,487
8,841,964
1,486,448
1,648,314
1,805,856
1,680,060
1.876.756
1,585,198
1,710,608
1,086,668
1,165,189
710,877
1,068,036
440,476
853.916
19,
63.840.598
58,530,837

•

7,355
84,169
38,949
38,058
34,155
87,940
33,630
81,518
87,013
14,777
18,193
10,014
16,805 /
7,803
6.381

47,877
46,077
51,179
57,999
68,569
77,998
75,649
89,439
83,885
88,619
153,919
114,794
88,838
58,612
66,968
I37.858Ì
31,810
84,788
88,038
17,607
15,401
13,838
18,310
18,840
45,468
89,481
18,887
84,343
14,434
9,655
6,485
4,783
3,506
3,887
8,033
3,747
8,375
1,445

' «1

-*

757257

Table 2. - Individual returns for 1947, by taxable and nontaxable returns and by adjusted gross income classes — Part I, all returns; Part II, returns with standard deduction; Part III,
returns with itemized deductions! Nuifcer of returns, income or loss from each of the sources comprising adjusted gross income, adjusted gross income, deductions, exemption, tax
liability, tax payments, and tax overpayment - Continued
PART II. - RETURNS WITH STANDARD DEDUCTION 2£/
Adjusted gross income classes ]J
1
2

s
4
S
6

7
8

9
10

11
12
15
14
15
16
17
18
19
20
21
22
25
24
25
26
27
28
29
50
51
52
55
54
55
56
57
58
59
40
41
42
45
44
45
46
47
48
49
50
51
52
55
54
55
56
57
58
59
60
61
62
65
64
65
66

67
68

Taxable returns!
0.5 under 0.75
0.75 under 1
1 under 1.25
1.25 under 1.5
1.5 under 1.75
1.75 under 2
2 under 2.25
2.25 under 2.5
2.5 under 2.75
2.75 under 5
5 under 5.5
5.5 under 4
4 under 4.5
4.5 under 5
5 under 6
6 under 7
7 under 8
8 under 9
9 under 10
10 under 11
11 under 12
12 under 15
15 under 14
14 under 15
15 under 20
20 under 25
25 under 50
50 under 40
40 under 50
50 under 60
60 under 70
70 under 80
80 under 90
90 under 100
100 under 150
150 under 200
200 under 250
250 under 500
500 under 400
400 under 500
500 under .750
750 under 1,000
1.000 under 1,500
1,500 under 2,000
2.000 under 5,000
5.000 under 4,000
4.000 under 5,000
5.000 and over
Total taxable returns
Nontaxable returns! 55/
No adjusted gross income
Under 0.5
0.5 under 0.75 ,
0.75 under 1
1 under 1.25
1.25 under 1.5
1.5 under 1.75
1.75 under 2
2 under 2.25
2.25 under 2.5
2.5 under 2.75
2.75 under 5
5 under 3.5
5.5 under 4
4 and over
Total nontaxable returns
Grand total

§/

Taxable returns with adjusted gross in—
come under $5,000 and nontaxable returns
Taxable returns with adjusted gross
income of $5-000 and over________________

Number
of
returns

Annuities
Salaries
Business and
Sales or exchanges
Rents and royalties 14/
Partnership 16/
and
Dividends 11/ Interest 12/ and
of capital assets 17/
__ profession 15/__
Densions 15/ Net Drofit Net loss Net profit Net loss Net profit Net loss
wages 10/

1,187,741
680,850
1,552,970 1,056,561
1,649,462 1,646,551
1,969,596 2,394,181
2,200,662 5,224,761
2,602,165 4,387,125
2,581,319 4,978,586
2,740,478 5,857,751
2,512,350 5,988,827
2,423,142 6,289,831
5,985,988 11,606,735
2,642,220 8,677,186
1,694,606 6,152,688
1,077,214 4,160,017
846,180 5,141,421
388,541 1,371,335
211,160
711,572
154,415
440,615
92,751
307,652
65,019
224,469
46,414
149,112
35,637
126,133
26,821
96,905
21,245
77,848
56,955
252,618
20,914
93,835
9,301
45,504
7,421
39,468
2,568
14,479
1,055
6,401
534
3,699
291
2,491
154
1,046
95
647
156
1,245
54
668
8
26
4
4
9
144
4
29
4
8
1
10

7,615
11,142
17,490
20,501
20,603
24,684
25,731
26,034
27,018
25,220
57,718
54,690
47,457
46,220
84,660
58,921
50,842
39,927
31,991
25,939
22,520
19,154
16,174
15,785
47,757
23,650
12,364
15,670
6,933
3,497
2,241
1,154
856
566
1,213
511
5
12
553
10
25
2

5,966
8,947
10,817
15,037
12,389
17,770
17,258
18,035
16,448
15,962
32,907
27,830
25,129
19,864
29,647
20,615
16,654
13,627
9,869
7,779
5,882
5,630
4,578
3,365
11,028
4,758
2,550
2,531
941
398
269
155
98
105
219
45
(55)
1
14
2
11
1

2,435
5,733
5,895
6,784
7,529
7,015
5,875
3,085
3,649
4,511
7,845
5,482
3,458
1,955
4,885
2,369
1, 566
1,562
916
571
340
211
204
239
819
266
196
115
29
45
19
8
5
5
2
-

to
to
to
»

in

13,257
15,992
20,183
31,322
31,326
35,094
38,829
39,418
33,792
40,795
76,996
68,957
55,668
50,785
67,984
54,553
36,719
29,118
24,627
19,996
15,450
12,413
10,870
9,369
27,875
14,490
7,000
7,257
3,232
1,481
1,022
547
478
155
466
308
8
(35)
673
(35)
-

1,565
1,440
2,290
3,279
3,322
4,901
5,365
5,254
4,643
7,834
11,966
8,414
6,253
4,465
6,075
2,675
2,159
1,623
1,050
897
690
440
371
265
1,220
1,214
283
168
109
163
115
5
10
29
5
1

m
-

(35)

«
-

1

42,539
56,201
151,771
177,599
212,417
295,278
301,852
390,982
359,965
405,104
760,446
684,121
596,584
570,115
817,043
646,721
485,381
377,555
305,381
235,987
199,495
161,150
128,903
112,744
346,704
168,117
88,058
87,171
37,455
17,150
10,686
5,865
4,362
2,397
4,381
1,477
471
7
22
489
593
6

2,090
2,680
4,384
10,661
8,047
10,555
8,452
9,391
10,099
8,940
15,469
12,231
7,404
6,197
11,347
5,246
4,315
3,596
2,138
1,905
1,556
1,269
982
1,015
8,327
2,500
917
1,112
522
262
128
63
35
14
103
9
•

to

64
-

to

11,111
16,584
30,921
48,197
56,137
86,597
86,072
125,154
123,910
137,343
262,006
258,454
202,300
189,038
345,420
265,235
211,835
188,414
155,267
132,619
113,461
99,675
85,097
74,851
250,992
132,486
81,285
83,446
41,644
19,916
11,929
7,654
4,292
3,358
6,045
1,135
-

831
2

to

584

920
600
2,161
1,665
1,361
1,585
2,151
3,504
2,568
1,925
4,097
4,514
2,382
1,793
5,615
1,229
1,879
1,848
969
1,173
455
628
704
274
2,176
613
369
480
251
145
54
48
27
2
3

to
8

•

4,085
6,704
9,796
16,055
19,846
22,157
26.814
58,066
50,791
58,858
80,801
78,152
68,960
55.815
86,175
61,655
47,879
56,715

41,4M
19,159
10,814
12,789
6,540
5.522
5.522
2,984
1,754
1,171
4,298
1,648
601
1,969
1,527

-

1,100

384.685

83.615

898.511

90.546

4,261,518
1,243,190
1,164,738
1,104,116
840,049
901,117
602,381
682,528
333,954
378,163
189,097
272,775
93,862
42.853
12.110.341
44.697.901

9,998
7,267
7,205
5,376
4,423
2,948
2,124
1,527
1,338
1,868
902
1,071
89
563
46.696
937.513
458,820

11,065
8,936
7,863
7,303
3,106
2,767
1,104
1,719
487
518
269
868
264
(34)
46.446
431.131
290,781

2,914
3,379
4,527
4,205
1,486
1,281
(54)
(34)
(34)
(34)
(34)
(34)

36,842
24,261
28,954
25,934
9,505
9,970
5,944
7,003
3,598
5,352
2,473
3,383
2,055

19.396
103.011
88,645

1.064.993

718,899

6,926
1,960
2,605
2,247
883
1,083
910
969
243
488
(34)
510
(34)
(34)
19.250
109.796
90,239

11.276.285
7,030,519

478, 692

140;346

14,370

346,092

19,561

4, 245,769

47,419

1,027,448
573,181
751,882
891,705
908,339
1,149,956
914,948
1,159,652
665,830
837,256
465,222
741,108
291,416
130.979
10.506.926

84.697.535
42,730,252 77,608,552
1,967, 649

7,088,982

Fo r footnotes, see pp. 22— 24; for extent to w hich data are estimated,

pp. 4 - 5 .

—

1.211

166.482

9.250.739 164.018

3.951.298

50.211

90,061
116,610
202,037
255,610
208,256
243,459
175,959
239,635
106,832
130,695
62,407
115,963
49,107
48.914
2.045.546

270.103

13,425
15,350
21,040
23,445
20,275
32,758
21,765
27,578
12,425
12,294
6,139
6,406
3,864
(34)
219.762
4.171.060

222,684

1,853,587

6,507
1,554
1,865
2,079
1,500
1,408
1,032
(34)
(34)
(34)
(34)
(34)
(34)
(34)
17.672
67.883
48,878

2,317,471

19,006

55,500
12,007
13,478
10,779
7,987
6,872
4,314
5,593
3,005
4,805
854
436
(34)
(34)

887

106.085

87.827
10,655
7,825
10,856
11,805
5,511
6,085
6,015
7,548
5,758
4,586
1,638
3,620
845
1,662
82.209

9,650
3,888
2,791
1,778
1,594
1,342
415
826
(34)
(54)
(34)
(34)

itti

25.454

11

21

22
25
24
25
26
27
28
29
50
51
52
55
54
55
56
57
58
59
40
41
42
45
44
45
46
47
48
49
50
51
52
55
54
55
56
57
SB
59
60
61
62
65
64
65
66

1.040.012
579,065
460,943

9
10

15.
14
15
16
17
18
19
20

-

890.817

7

12

-

32.587.560 74.190.609

6

8

6 ,6 6 6

.

1
2
5
4
S

5,550
4,158
7,592
4,949
3,780
2,850
2,072
1,567
1,275
1,125
916
681
2,133
870
460
417
128

6

35
23

2,030
1,427
1,387
3,395
3,604
4,057
4,192
4,873
4,348
4,032
7,173

67
30,952

68

Income of 85.000 and mref
For footnotes, see pp. ZS- Z4 ,; for extent; -to w h i c h data are estimated, see pp. 4 _ s.

Table 2. — Individua: returns for
returns with itemized deductions;
liability, tax payments, and -base

194V,

ntaxable

by

— Continued

adjusted gro

¡
a
r
s
e
s
..
*

PART II. - RETURNS WITH STANDARD DETECTION

Adjusted gross income classes ¿/
Taxable returns;
0.5 under 0.75
0.75 under 1
1 under 1.25
1.25 under 1.5
1.5 under 1.75
1.75 under 2
2 under 2.25
2.25 under 2.5
2.5 under 2.75
2.75 under 5
5 under 5.5
3.5 under 4
4 under 4.5
4.5 under 5
5 under 6
6 under 7
7 under 8
8 under 9
9 under 10
10 under 11
11 under 12
12 under 13
18 under 14
14 under 15
15 under 20
20 under 25
25 under 30
30 under 40
40 under 50
50 under 60
60 under 70
70 under 80
80 under 90
90 under 100
100 under 150
150 under 200
200 under 250
250 under 500
500 under 400
400 under 500
500 under 750
750 under 1,000
1,000 under 1,500
1,500 under 2,000
2,000 under 3,000
5,000 under 4,000
4,000 under 5,000
5,000 and over
Total taxable returns
Nontaxable returns; 33/
No adjusted gross Income
Under 0.5
0.5 under 0.75
0.75 under 1
1 under 1.25
1.25 under 1.5
1.5 under 1.75
1.75 under 2
2 under 2.25
2.25 under 2.5
2.5 under 2.75
2.75 under 3
3 under 5.5
5.5 under 4
4 and over
Total nontaxable returns
Grand total
Taxable returns with adjusted gross income under $5,000 and nontaxable returns
Taxable returns with adjusted gross
income of $5.000 and ov?r

§/

For footnotes, see pp.

ZZ

S

S

- Continued

/

v,dMLmgvtta
Sales or exchanges of Income from
Amount of
Tax
property other than estates and Miseellaneous Adjusted
gross
caDltal assets 18/
income 2/ exemption 21/ liability
trusts 19/ income 20/
Net crain Net loss

_______

(54)
(34)
692
938
1,147
1,442
2,074
1,950
1,567
2,139
5,327
5,159
3,690
2,165
4,440
4,563
1,937
1,508
914
1,082
558
567
590
366
838
452
299
284
20
16
31
3
4
1
8
S

m

«.
to,

to

(55)

m
-

(34)
(34)
288
895
1,517
820
615
1,165
495
605
1,706
1,455
938
904
1,828
1,008
1,408
495
498
452
405
187
110
96
538
296
149
141
51
50
5
1
8
«

17

to

m
m
to.
—
-

to

aw»

•

•
•
«

ito

2,611
2,289
5,958
5,231
6, n s

4,286
6,855
8,591
6, n s

5,004
13,143
13,690
16,949
8,601
24,069
19,699
17,504
12,078
n,898
9,832
7,847
6,432
5,604
4,870
19,802
8,958
5,642
5,894
2,813
2,282
1,162
802
179
592
672
77
747
273
(35)
1
«
«
«
•
ww
«

4,676
6,322
9,455
12,507
12,464
15,577
14,885
19,159
19,389
20,465
54,271
25,998
25,343
13,286
17,492
13,816
8,660
6,557
6,046
4,706
5,950
2,507
2,255
1,187
5 429
2,365
1,587
1,759
591
468
175
186
27
5
139
(35)
3
«.

(55)
•w
m.
«to

to
to

to
to

768,597
1,178,429
1,877,018
2,706,461
3,586,885
4,875,088
5,484,058
6,505,858
6,589,325
6,961,873
12,897,788
9,862,442
7,175,738
5,100,341
4,590,784
2,504,172
l ,5 7 6 ,8 n

1,137,261
877,520
680,431
532,407
444,724
361,279
507,737
970,955
468,027
252,703
252,066
n 5 ,4 1 4

56,287
54,429
21,699
12,985
8,949
18,555
5,860
1,852
1,154
5,094
1,822
2,321
885
«
•
—

598,871
676,485
1,004,379
1,312,557
1,587,460
2,130,856
2,186,298
2,767,824
2,650,915
2,907,317
5,181,403
5,707,575
2,480,020
1,588,092
1,190,004
519,064
276,231
172,948
U7,812
81,877
57,190
44,082
55,030
25,367
67,570
24,512
10,563
8,269
2,755
i,n5
516
302
159
96
142
54
5
4
9
5
5
1

to

-

to*
Sto
—

18,907
7 s ,o n

131,424
214,929
318,624
429,440
523,949
586,460
626,935
658,854
1,227,567
991,U 6
768,235
585,622
592,079
369,219
256,154
200,079
165,226
136,297
n 2, 8n

99,063
84,847
75,SU
266,105
149,784
92,355
105,246
52,100
27,887
18,140
U,920
7,343
5,289
n ,S 2 2

3,744
1,221
877
1,809
1,064
1,556
445
••
«to

to

—
-

payment
Payments on Tax due at Over
(refund, or
Tax
decla­ time of
credit on
withheld 1947
ration 22/ filing
1948 tax)
59,370
99,074
149,550
224,226
313,587
424,845
502,349
561,636
588,924
597,179
1,118,529
867,359
645,874
463,451
582,559
179,968
97,862
62,681
44,700
33,761
22,613
19,575
14,906
12,392
57,918
15,856
7,972
6,994
2,634
1,237
672
420
146
130
195
136
4
1

20
5
1
2
-

2,199
4,633
8,265
12,509
16,516
25,396
26,458
32,281
55,614
36,342
74,675
71,97?
66,858
67,389
n9,677
104,759
92,064
79,015
72,051
61,786
54,712
48,733
42,371
58,919
141,194
84,a n
52,349
60,609
32,166
17,461
10,775
7,287
4,424
5,298
6,899
2,202

902
784
1,014
1,000
1,346
430

45,575
40,554
42,557
45,656
46,578
56,270
49,449
57,865
50,169
51,510.
81,656
53,451
35,921
24,093
24,516
n ,5 8 5

10,718
7,888
6,877
5,129
5,912
3,565
2,857
2,634
8,442
5,860
1,813
1,683
772
848
217 i
84
29
49
32
44
«*
50
7
—

1

to
••
-

-

m

«
—

•

-

•*
—
—

—

2,912
9,659
16,184
23,829
29,899
37,469
44,590
50,4SB
52,567
56,845
118,018
105,230
91,422
76,868
13.4,159
96,074
76,926
66,522
65,572
45,879
39,599
54,321
29,928
26,834
95,452
53,597
35,826
57,526
18,072
9,587
6,910
4,297
2,802
i,9n
4,260
1,449
515
142
785
59
190
12
••
«

-

—

—

—

44.677

19.316

270.476

3U.707

90.805.017

35.888.350

9.975.022

•to
7.561.221 1.621.708

to
1.570.083

to
777.991

1,091
606
1,085
1,028
707
1,534
1,437
2,313
(34)
(34)
(34)
(34)
(54)

1,136
912
1,998
805
566
(34)
(54)
1,275
(34)
(34)
(34)
(34)
(34)
(34)
8.444
278.920
109,686

to
10,749
7,325
9,837
10,019
8,437
n ,2 0 1
9,074
8,758
5,262
5,432
2,817
5,211
2,174
1.574
93.869
405.576
525,663

1,152,354
745,U8
1,025,750
1,219,461
1,158,014
1,450,453
1,131,551
1,448,041
793,945
993,160
541,087
874,856
349,353
187.719
18.070.845
103.873.862
38,638,725

2,798,743
1,538,305
1,559,134
1,670,509
1,554,521
1,735,622
1,386,872
1,593,101
981,401
1,053,457
596,346
905,182
356,529
184.431
17.663.548
51.051.878
48,418,395

•
83,287
6,085
3,267
30,383
29,361
3,n9
30,047
2,798
2,062
25,877
to
28,187
2,190
««
15,917
1,439
to 22,568
1,6U
8,607
669
to
to 13,384
742
—
5,628
192
.to
10,534
297
••
167
4,483
—
2.554
(54)
509.222
24.810
9.975.022 7.870.445 1.646.518
503,882
7,128,073 6,925,155

to
—

12.781
57.458
59,457

4,444
1,124
795
884
(54)
1,404
(34)
(34)
(54)
(34)
(34)
(34)
(34)
(54)
11.270'
30.588
22,848

1.670.085
713,949

69,572
33,650
32,480
32,845
25,988
30,978
17,556
23,979
9,27®
14,127
5,820
10,831
4,655
2.727
334.032
l.n2.023
1,014,918

18,004

7,743

169,229

79,908

15,235,159

2,653,484

945,288 1,142,636

856,134

97,no

—

•to

- 24; for extent to which data are estimated, see pp. 4 - S.

•

-

to

2,848,949

••
—

to
-•
•

m
.
••

Table 2. - Individual returns for 1947, by taxable and nontaxable returns and by adjusted gross income classes — Fart I, all returns; Part H, returns with standard deduction; Fart HI,
returns with itemized deductions! Number of returns, income or loss from each of the sources comprising adjusted gross Income, adjusted gross income, deductions, exemption, tax
liability, tax payments, and tax overpayment - Continued
PART III. - RETURNS WITH ITEMIZED DEDUCTIONS 24/

Adjusted gross income classes

1
2

3
4
5
6
7
8

9
10

11
12
15
14
15
16
17
18
19
20
21
22
25
24
25
26
27
28
29
50
51
52
55
54
55
56
57
58
59
40
41
42
45
44
45
46
47
48
49
50
51
52
55
54
55
56
57
58
59
60
61
62
65

1/

axable returns!
0 .5 under 0.75
0.75 under 1
1 under 1.25
1.25 under 1.5
1.5 under 1.75
1.75 under 2
2 under 2.25
2.25 under 2.5
2.5 under 2.75
2.75 under 5
5 under 5.5
5.5 under 4
4 under 4.5
4.5 under 5
5 under 6
6 under 7
7 under 8
8 under 9
9 under 10
10 under 11
11 under 12
12 under 15
15 under 14
14 under 15
IS under 20
20 under 25
25 under 50
50 under 40
40 under 50
50 under 60
60 under 70
70 under 80
80 under 90
90 under 100
100 under 150
150 under 200
200 under 250
250 under 500
500 under 400
400 under 500
500 under 750
750 under 1,000
1,000 under 1,500
1,500 under 2,000
2,000 under 5,000
5,000 under 4,000
4,000 under 5,000
5,000 and over
Total taxable returns
Dontaxable returns! 55/
Nò adjusted gross income ¿/
Under 0.5
0.5 under 0.75
0.75 under 1
1 under 1.25
1.25 under 1.5
1.5 under 1.75
1.75 under 2
2 under 2.25
2.25 under 2.5
2.5 under 2.75
2.75 under 5
5 under 5.5
5.5 under 4
4 and over
Total nontaxable returns
Grand total
Taxable returns with adjusted gross income under $5,000 and nontaxable returns
Taxable returns with adjusted gross
income of 45.000 and ower

footnotes, see

Number
of

Salaries
Annuities
Divi­
and
Interest 12/ and pensions 15/
wages Iß/ dends 11/

28,156
75,752
4,694
176,126 101,942
11,085
259,555 189,951
15,564
519,874 520,926
18,495
584,944 476,720
17,706
472,241 707,320
21,048
551,425 957,513
24,205
S85,889 1,172,319
22,7S6
615,062 1,380,362
24,524
623,149 1,554,164
24,246
1,154,012 5,281,200
43,552
915,626 3,005,017
46,567
626,141 2,282,629
41,314
420,930 1,685,887
51,557
491,886 2,165,875
69,221
66,076
278,295 1,318,445
75,467
170,745 851,849
125,516 641,121
75,287
98,118 525,260
67,032
80,988 464,225
62,590
65,687 578,761
65,251
56,792 554,513
61,687
46,462 292,124
58,590
41,896 274,966
59,998
144,345 1,105,168 259,902
81,472 755,812 215,886
48,525 507,625 169,174
52,817 655,592 266,871
26,552 582,329 191,801
14,626 245,645 149,442
8,904 165,985 116,149
5,804 119,154
96,021
87,126
3,885
74,866
2,725
65,207
66,070
6,197 168,HI
201,555
2,025
61,628 117,584
29,471
895
67,551
455
16,311
41,754
416
15,284
54,705
229
8,857
55,556
214
6,111
48,852
85
2,645
28,640
64
2,259
54,155
25
154
12,469
520
12
9,160
8
117
8,283
1
66
55
6
64
19.955
8.990.964 2B.740.168 3.286.061
299,072
54,555
156,974
102,495
155,363
107,063
105,657
90,451
69,372
81,085
55,883
51,599
68,618
51,435
24.945

67,076
10,431
59,992
44,551
75,208
76,507
100,017
118,405
100,697
147,575
114,002
115,529
177,405
89,756
88.699
3*366.044

16,819
5,859
7,526
5,266
7,445
5,545
5,881
5,012
2,800
1,464
756
1,229
3,058
1,197
8.001
71.616

Rents and
royalties 14/

Business and
profession 15/

Net
Drofit

Net
profit

Net
loss

Net
loss

Sales or exchanges
of properly oilier
Partnership ¿6/ S*Les
exchanges
of capital assets 1,7/ than capital
assets 18/
Net
Net
Net
Net
Net
Net
loss
loss'
Drofit
loss
gain
gain

3,071
7,275
8,854
8,740
11,882
12,894
11,640
11,522
12,043
15,592
19,358
16,954
14,259
11,296
27,394
23,412
20,294
19,695
19,854
15,998
15,695
14,905
15,718
15,554
55,386
39,555
50,550
42,265
27,354
18,595
15,846
10,073
8,175
6,554
17,490
8,454
4,756
2,888
2,691
2,506
2,994
1,101
1,667
1,195
406
85
..
2.808
648.448

1,157 (34)
752
5,225
258
5,661
174
12,067
756
4,168 (34)
2,449
12,805 1,573
15,598 1,477
26,324 1,818
8,750 1,505
4,159
47,156 5,535
16,205 1,773
14,055
957
9,113
25,809 2,696
65,488 5,U5
17,545 (54)
7,395
22,176 1,395
12,115
25,658 5,876
86,193 4,560
25,696 5,819
86,777 5,853
28,585 (54)
14,552
33,664 1,014
12,462
27,825 5,175 108,424 4,356
35,561 1,129
19,562
27,525 5,517 107,958 3,720
57,142 1,147
17,690
26,215 6,406 U5, 524 3,981
84,993 2,465
54,601
52,721 10,095 219,005 8,917
46,376 7,158 185,362 6,766
74,197 2,036
36,045
68,010 1,782
27,875
36,205 5,641 180,567 6,720
28,641 4,141 150,466 3,196
59,354 1,575
23,917
46,802 4,965 225,823 5,912
97,582 5,145
36,725
45,058 2,776 196,912 5,847
90,836 1,760
40,086
51,655 5,181 177,526 5,378 101,625 2,570
50,984
96,554 1,930
29,371
28,986 1,885 165,269 4,551
28,858 2,459 160,255 6,470
98,517 5,135
25,832
22,785 1,251 142,764 5,862 105,556 1,869
25,055
22,966 1,276 140,060 4,021 100,743 1,702
21,662
97,668 1,624
20,510
22,869 1,172 127,795 4,572
19,487
820 U6,260 4,990
97,257 1,427
18,187
19,802
95,2U 1,448
18,429
950 115,219 4,247
73,U7 4,008 445,422 14,070 427,505 4,790
70,602
54,820 2,957 517,580 U,222 549,670 4,434
60,534
37,476 1,997 215,774 9,056 276,191 5,140
45,366
53,427 2,874 272,645 12,545 393,359 4,165
71,484
34,158 1,529 164,836 8,927 269,901 2,680
54,687
24,206
45,327
94,471 8,797 186,619 1,849
995
17,844
36,027
754
65,756 5,255 155,450 1,776
12,270
769
99,376 1,557
51,784
45,127 5,852
9,797
72,782 1,112
27,254
465
50,429 3,374
7,448
51,345 1,086
21,152
582
22,675 2,2U
85,076
20,075
980
51,228 7,329 159,252 1,699
7,417
4,721
51,065
995
49,555
487
16,760
6,540
23,710
579
55,916
264
10,859 2,459
2,854
15,167
766
22,913
87
7,692 1,576
15,776
554
55,057
2,848
4,248 1,841
209
5,056
6,246
507
51,278
2,165 1,140
105
2,704
5,746 2,557
8,850
255
35,674
415
1,557
4,425
U0
15,295
2,422
757
120
229
73
26,448
1,290
592
81
2,025
670
151
7
8,761
59
675
558
«
94
6,300
55
2,988
450
26
MB
«»
3,475
14,460
1
275
m
m
718
4,147
5
50
MB
4
12
13.125
__ 16
us
25
107.675 1.029.198 101.095 4.734.486 206.465 5.993.625 70.698 1.332.905

317
1,025
2,298
2,497
2,589
3,620
3,905
4,086
3,535
4,522
7,852
6,521
6,951
5,837
7,625
6,559
6,177
5,781
5,641
4,706
4,259
5,889
5,230
5,216
12,954
8,250
5,735
7,054
5,751
2,300
1,553
980
645
517
1,125
401
183
91
68
57
58
22
18
4
5
•
«9

10,156
1,978
5,984
5,547
5,591
4,085
3,484
1,729
1,508
951
655
1,087
1,572
276
1*657
45.835

16,797 145,121
42,195
26,579 25,845
10,078 519,812
1,405 (54)
1,528
6,513 1,550
5,668 8,054
15,894 5,575
2,688 (54)
2,145
16,093 1,029
3,139 (34)
1,771
11,601 1,140
19,709 5,275
5,494 (54)
5,995
41,347 4,460
15,915 1,595
8,225 1,612
4,529
38,960 4,544
12,0U 1,674
5,640 (34)
3,391
43,726 2,866
8,775 1,965
3,630 (54)
2,174
7,258 1,089
55,975 2,570
4,592 (34)
3,045
50,866 1,655
5,683 1,415
7,654 (54)
1,733
31,655 5,256
3,589 1,584
3,211
20,566 1,905
5,8U (54)
2,677
439
4,994 (34)
1,422
(34)
599
21,182 (34)
3,231
25,669 1,518
7,507 (34)
3,185
(34)
5,275 1,353
3,873
335
3,617 (34)
1,502
(54)
17,325 (54)
6.074 (34)
15.582 (34)
(34l
4.708 (34)... 4.489
133.478 39.894 369.798 562.544
85.897 156.896
79.382
16.148
123.821 1.162.676 140.989 5.104.284 768.807 4.077.522 227.394 1.412.285
502,243 100,664 1,767,108 628,403
673,017 174,944
501,824
77,902

18,281
2,720
1,805
1,416
1,916
1,515
1,024
978
1,217
1,055
1,U4
880
815
514
788

1.410.143
10.401.107 30106. E32 3.357.677
8,544,849 18,488,154
418,710

694.283
209,216

1,856,258 11,618,080 2,940,967

485,067

988
5,621
5,665
7,551
6,298
6,158
5,770
4,987
3,084
5,037
5,261
4,214
3,512
1,850
5,580
’2,610
5,191
2,648
2,050
1,849
1,726
1,625
1,405
1,259
4,940
2,893
2,318
5,545
2,168
1,357
1,059
682
857
615
1,598
618
295
280
84
69
557
27
99
(55)
155
•
«

502
695
2,414
1,605
4,215
2,0U
1,781
1,257
(54)
(54)

45,915

660,435

40,327 5,537,176 150,404 3,504,509

52,450

1,110,459

m

(34)
(34)
(54)
(54)
1,177
(34)
450
885
2,350
961
5,528
1,428
2,055
1,040
3,626
2,283
1,129
1,364
870
855
594
535
628
451
2,440
1,628
668
1,056
542
460
268
215
105
94
US
55
78
(35)
U9
IS
2
17
1
2

(54)
(34)
(34)
458
(34)
788
1,018
1,152
1,008
1,457
655
1,160
(34)
977
773
657
806
1,251
809
817
1,058
365
472
1,997
1,274
994
1,661
1,569
645
698
306
250
145
658
560
165
57
152
78
79
55
5
-

m

m

21
—
60
55.072 28.227

89, 567
96,766

20,189

56.014

Miscel­
laneous
income
20/
trusts 19/

mm
m
—

4,013 56,080
(54)
(54)
(54)
(34)
(34)
(34)
(34)
(34)
(54)
(54)
(54)
(84)
(54)
(34)
(34)
(34)
(54)
(34)
(34)
(54)
(54)
(34)
(34)
(34)
(54)
(34)
(54)
(34)
8.604 64.268
43.676 92.495
23,489 73,571

186.334

Income
from
estates

16, 926

(34)
1,640
2,867
2,428
2,388
3,310
2,942
3,651
4,552
5,698
8,718
U,578
5,685
7,557
17,964
19,961
15,545
16,512
15,552
18,068
16,427
15,088
16,002
14,125
68,525
56,569
48,446
77,121
57,521
41,914
55,797
26,562
22,598
19,687
66,696
40,062
24,215
18,671
18,564
15,805
21,210
16,150
10,264
15,529
7,899
217
••
4.175
956.771

1,567
1,910
2,550
5,292
4,750
3,569
6,622
8,001
6,770
10,052
17,280
U,783
10,197
5,159
U,400
9,295
7,667
5,669
5,168
5,092
4,327
3,974
3,501
4,161
15,5U
9,315
6,405
7,718
4,459
3,517
2,615
1,514
965
1,588
1,998
973
724
196
127
222
91
1B5
U
8
2
12
1
190
2U.260

5,399
892
815
1,176
2,025
1,186
(54)
(34)
(84)
(54)
(34)
(34)
(34)
(34)
(34)
14.990

4,352
654
2,599
1,994
3,704
5,047
2,454
1,974
2,041
2,408
1,910
2,040
992
1,054
1.647
32.790
244.050

951.761

77,742

127,872

874,015

116,175

whloh data

rd deduction: Pert XX X •

1
2
5
4
5
6

7
8

9
10

U
12

15
14
15
16
17
18
19
20
21
22
25
24
25
26
27
28
29
50
51
52
55
54
55
56
57
58
59
40
41
42
45
44
45
46
47
48
49
5Ö
51
52
55
54
55
56
57
SB

59
60
61
62
65
64
65
66
67

i
I68

com» wiaer *&,uuu and nontaxable returns
Taxable returns with adjusted gross
income of > 5.000 and o-ver

xw

1,856,258 H,61B,080 2,940,967

660,455

Ofö,vlM174,WMkl

OUI,0*4

5,557,1761150,404IS,504,5091 52,4501 1,110,459

89,567

23,489 I 73,571

96,766

20,189 ¡18,926

77,742

I 127,872
116,175

extent to whle

Table 2« — Individual returns for 1947, by taxable and nontaxable returns and by adjusted gross income classes — Part I, all, returns; Part U , returns with standard deduction; Part 1X1,
returns with itemized deductions* Number of returns, income or loss from each of the sources comprising adjusted gross income, adjusted gross income, deductions, exemption, tax
liability, tax payments, and tax overpayment — Continued

PART III. - RETURNS WITH ITEMIZED DEDUCTIONS 24/ - Continued

Adjusted gross income classes ¿/

Adjusted
gross
Income Jg/

Taxable returns:
0.5 under 0.75
50,542
2,976
291
1,642
0.75 under 1
154,573
9,911
1,605
6,876
1 under 1.25
16,585
271,301
3,176
10,579
1.25 under 1.5
440,841
24,201
6,017
15,639
1.5 under 1.75
623,728
55,149
9,220
22,892
1.75 under 2
47,934
886,479
15,532
50,470
2 under 2.25
58,636
1,128,493
20,829
38,495
2.25 under 2.5
68,391
1,390,847
28,813
47,014
2.5 under 2.75
1,609,199
77,021
35,529
56,459
2.75 under 3
1,791,079
84,199
40,648
65,448
5 under 3.5
172,419
94,750
3,739,377
156,267
8.5 under 4
3,415,003
153,093
88,259
121,911
4 under 4.5
115,547
2,649,852
69,416
95,866
4.5 under 5
86,226
1,991,419
50,125
69,523
5 under 6
2,681,172
113,546
62,593
94,593
6 under 7
1,795,256
75,727
39,502
63,407
7 under 8
1,276,785
50,529
28,099
47,018
8 under 9
1,063,546
40,815
21,839
39,354
9 under 10
930,312
35,087
17,428
35,554
10 under 11
848,316
51,566
14,992
29,820
11 under 12
754,148
26,685
12,167
26,745
12 under 13
24,847
708,655
11,053
24,571
13 under 14
626,105
21,504
9,405
21,532
14 under 15
606,865
20,341
8,745
20,688
15 under 20
2,484,519
80,451
52,939
81,880
20 under 25
1,815,320
55,872
21,767
58,786
25 under 30
1,318,872
41,098
16,744
41,485
30 under 40
1,814,964
57,796
20,829
56,162
40 under 50
1,171,460
37,997
12,890
55,716
50 under 60
796,768
27,074
9,1B0
24,136
60 under 70
574,717
20,705
6,567
17,357
70 under 80
433,315
16,755
5,190
13,132
80 under 90
328,909
15,131
5,551
9,956
90 under 100
257,694
11,514
3,060
8,252
100 under 150
741,385
35,441
8,976
23,169
150 under 200
18,530
346,784
4,098
10,664
200 under 250
198,261
10,904
2,554
6,572
250 under 300
124,109
7,246
1,610
3,409
300 under 400
142,695
8,772
1,905
4,325
400 under 500
101,644
6,012
1,073
2,961
500 under 750
127,426
8,632
1,436
5,764
750 under 1,000
71,179
5,490
652
1,948
1,000 under 1,500
77,657
5,669
265
1,677
1,500 under 2,000
38,963
3,946
82
935
2,000 under 3,000
26,894
2,128
74
546
3,000 under 4,000
26,354
2,614
14
375
4,000 under 5,000
4,958
744
41
1
5,000 and over
40.120
3.903 ..... 8$ .
480
Total- taxable returns
Nontaxable returns: 33/
No adjusted gross income £/
8/559,193
3,939
4,286
5,954
Under 0*5
17,461
2,083
2,109
3,453
0.5 under 0.75
85,752
5,814
3,046
7,899
0«75 under 1
89,272
5,207
3,005
7,183
1 under 1.25
151,675
8,079
5,764
9,781
1*25 under 1*5
146,182
7,649
5,325
9,666
1.5 under 1.75
168,342
8,704
5,053
8,912
1*75 under 2
168,447
7,648
5,108
7,993
2 under 2.25
147,053
7,201
4,459
6,226
2*25 under 2*5
191,784
8,470
6,125
7,306
2*5 under 2*75
146,508
6,944
5,842
6,033
2.75 under 3
147,945
6,689
5,112
6,110
3 under 3.5
220,669
10,457
8,171
8,984
3*5 under 4
116,942
5,122
. 4,530
4,627
4 and over
, 124.521
4.841
6.886
7.381
Total nontaxable returns
,,.9^.365,561
.98,846
72.819
107.506
Grand total
9/45.862.220 1.973.580
918.208 1.631.555
Taxable returns with adjusted gross in,2/21,508,093 1,050,933
537,009
822,589
come under $5,000 and nontaxable returns
Taxable returns with adjusted gross
24,354,125
922,651
381,203
808,968
income of $5,000 and over
For footnotes, .see pp.22 - 24} for extent to which data are estimated, see pp. 4- 5.

Payments
Tax
on 1947
withheld décla­
ration 22 /

¡J

Amount
Losses from Nedleal, Miscei­
Total de­ Net
Net
Tax lia­
Contribu­ Interest 26/ Taxes 27/ fire,
lenecus
storm, dental,
ductions income 51/ deficit ¡2/ of exemp­ bility
tions 25/
etc.,
ex­
deduc­
tion 21/
etc. 28/
penses 29/ tions 30/
78
645
1,085
2,121
5,287
4,687
6,207
7,943
7,649
8,759
21,694
19,156
16,417
11,707
16,246
10,264
5,716
5,955
3,532
2,816
2,425
2,122
1,818
1,519
6,797
4,339
2,612
4,054
2,524
1,619
1,266
853
698
723
1,394
1,517
449
437
224
344
318
788
98
3
(35)
9
M

1,720
10,657
19,002
29,201
59,215
54,059
65,264
73,447
80,443
83,628
156,513
152,572
91,537
65,585
75,359
41,635
26,3B4
19,517
14,590
11,336
8,720
7,558
5,804
5,050
16,900
8,527
4,770
4,543
2,021
1,045
551
310
220
123
222
48
19
13
6
•
3

m

mm
mm
mm
mm

118
3,449
665
2,115
1,565
2,758
3,009
2,267
2,822
3,267
4,005
2,177
.5,339
5,955
6,478
15.212
61.084
253.875
172,498
81,375

1,843
3,150
8,426
12,215
19,059
22,471
57,328
46,649
53,758
59,501
152,075
150,849
116,186
91,878
127,090
77,171
45,793
56,854
35,240
27,461
22,401
20,263
17,3*2
16,565
66,469
43,938
26,153
39,090
24,794
17,154
12,659
10,053
7,550
6,018
18,049
9,744
5,382
3,399
4,656
2,739
4,484
1,812
917
1,978
598
469
mm

989

8,550
52,825
SB,848
89,395
128,799
175,152
224,759
272,259
510,858
540,165
71Ç,71S
645,819
502,570
575,043
489,207
507,706
203,540
162,514
157,252
117,790
99,159
90,414
77,404
72,887
285,416
195,228
132,861
182,453
115,942
80,208
59,084
46,275
35,106
29,690
87,250
44,601
25,880
16,116
19,887
15,129
18,634
10,692
8,627
6,943
3,346
3,481
786
5.575

41,993
121,750
212,452
551,448
496,929
711,527
903,734
1,118,S68
1,298,542
1,450,916
5,025,662
2,769,186
2,147,282
1,616,576
2,191,965
1,487,551
1,073,245
901,232
793,061
730,526
655,009
618,239
548,702
535,978
2,199,103
1,620,095
1,186,010
1,632,508
1,055,518
716,559
515,653
387,012
293,805
228,004
654,134
302,182
172,381
107,994
122,808
88,514
108,792
60,487
69,051
52,020
23,547
22,875
4,172
34.546

»
3,307
4,746
25,682
3,394
2,812
14,517
9,241
14,060
5,278
38,212
52,527
18,621
6,458
49,541
42,039
25,214
7,046
56,643
97,709
8,644
22,358
56,650
91,698
24,357
10,207
59,480
109,624
22,077
55,606
9,959
113,906
19,987
10,567
51,706
97,118
19,676
12,131
57,713
134,793
16,596
13,855
51,444
95,976
13,753
10,568
47,573
101,598
21,177
21,744
76,489
145,100
9,645
13,261
43,663
76,509
7.873
32.442
74.632
61.236
242.073 169.719
752.048 1.236.575
1.398.125 1.638.299 7.815.644 38.673.840
1,142,696 905,082 4,630,800 17,502,561

255,434

733,214 3,182,840 21,171,282

m
mm
mm
mm
mm
m.

,
m
m
mm
mf
mm

mm
mm
mm
mm
mm
mm
mm
mm
m.
mm
mm
mm
mm
mm
mm
mm
mm
mm
mm

«

36,866
88,065
182]090
214,234
278,787
891,911
478,586
588,775
684,034
768,058
1,561,740
1,540,756
972'978
66l]252
778,631
417,917
250,754
179,858
138,906
114,716
91,011
78,138
63,202
57,479
195,349
106,949
62,041
65,372
31,234
16,655
9,871
6,273
4'080
2,812
6,121
1,871
788
392
372
183
155
68
56
23
9
7
2
__ £

m
i
mm
m

,

mm
M
mm
mm
mm
mm
mm

584,875
6,296
4,987
2,307
2,677
2,165
762
1,066
1,770
722
912
(54)
(34)
(34)
H.346
625.262
625.262
625,262

1,281
6,409
15,506
25,928
4l]317
60,345
80,752
100,666
116'007
128,852
276]824
271,599
225,718
185,851
278,552
215,486
171,477
155]991
146,602
142,966
135,476
134,278
124)889
126'727
584,348
506,864
418,743
650'849
471,493
546,662
265,139
208,389
164,167
131,514
599'768
196'184
116,567
74,507
84,585
60'574
76,164
44,606
48,515
25,737
17]630
14,497
2,082
24.802

2,144
8,560
16,720
28,058
45,506
6S]061
87*613
109,740
124,280
138,309
295,559
282,345
225,765
175]965
245j022
161,026
107j988
86,817
75,468
66,951
55)445
52,433
44)479
42'772
175,968
121,715
86,623
114]799
68,798
44,314
30,638
22]405
16,400
12,203
30,710
10,716
5]551
3'149
2,332
1,619
l]04S
394
382
8
70
21
12
10

349
1,679
3]661
4*836
7,055
8*432
10',456
12]079
12'750
14,865
27,561
28]666
25,780
23,716
46,950
51,515
56,925
59'609
61,868
62'326
64,865
65,562
64'399
66,465
322'818
298'387
2S7,682
417,891
516,363
238'904
186]047
148]410
118]176
96,574
299]162
154,904
9l]354
60,642
68,362
49,839
61,138
40,258
41,532
20,356
15]354
11*183
82
17f674

344,427
7,355
33,025
43,221
882
1,486
88,145
2,566
1^079
m 2,697
83,180
1,233
_ 4]106
135,547
1,523
m.
125,739
4,063
1,435
mm
141,134
4,843
1,695
158,320
5,595
l]244
..
117'501
4,645
'829
•
155,268
6,170
757
«
111',672
4,809
728
«
113,931
4,386
916
162,854
6,271
1,188
M
84,147
3*315
'811
69.485
3.767
2.648
mm
1.914.567
65.469
50.597
12.788.714 8.101.259 3.355.388 4.165.812
10,112,442 1,535,010 1,669,111
232,482

Overpay­
Tax
(re­
due at ment
or
time of fund,
filing credit on
490
2,095
5^747
S]597
6]947
8]560
8]862
10]421
12]095
12]569
25,966
21,929
20,487
18]691
28]826
28,821
27,057
26,464
26,422
26]187
26]657
26]557
25,465
27]097
122,582
112,325
91,512.
140]819
99,994
72]751
54]722
42,214
S3]068
2S]976
77]896
56]267
2l]837
12,112
15]165
9^593
15]566
4,733
6]795
3 637
2'282
3^654
1*988
7'118

'

1,702
5*725
8*622
li]563
16*191
21 ]728
26]200
574
55]116
57)l09
72]265
6l]S43
46,817
34]519
42,446
25,675
20,492
16,900
15,155
12,478
ll]489
10,273
9*455
9]606
37]020
25]561
17]074
22]660
13,662
9^307
6]268
4,639
3^477
3,238
8*001
3]703
2]375
1¡395
l]274
*677
1,581
*779
195
244
56
361

31,

40,381
2*368
3*643
3^930
5*629
5^496
6*538
6*837
5^476
6*927
5*538
5]302
7*459
4]126
6*416
116.068
862.353
158,254 524,836

2,676,272 6,566,250 1.686.279 3,933,331 1,284,157 337,514

Table 3. - Individual ret^s ^ r 1947,
taxable and nontaxable returns and by adjusted gross Income classes: Frequency distributions of returns for each
specific source of income or loss comprising adjusted gross income, for each type of tax payment, and for tax overpayment
Adjusted gross income classes 1/
(Thousands of dollars)
1
2
3
4
5
6
7
8

9
10

11
12

13
14
15
16
17
18
19
20
21
22

23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
5.5
56
57
58
59
60
61
62
63
64
65
66

67
68

Taxable returns:
0,5 under 0.75
0.75 under 1
1 under 1.25
1.25 under 1.5
1.5 under 1,75
1.75 under 2
2 under 2.25
2.25 under 2.5
2.5 undér 2.75
2.75 under 3
3 under 3.5
3.5 under 4
4 under 4.5
4.5 under 5
5 under 6
6 under 7
7 under 8
8 under 9
9 under 10
10 under 11
11 under 12
12 under 13
13 under 14
14 under 15
15 under 20
20 under 25
25 under 30
30 under 40
40 under 50
50 under 60
60 under 70
70 under 80
80 under 9Ò
90 under 100
100 under 150
150 under 200
200 under 250
250 under 300
300 under 400
400 under 500
500 under 750
750 under 1,000
1.000 under 1,500
1,500 under 2,000
2.000 under 3,000
5.000 under 4,000
4.000 tinder 5,000
5.000 and over
Total taxable returns
iontaxable returns: 33/
No adjusted gross Income 5/
Under 0.5
0.5 under 0.75
0.75 under 1
1 under 1,25
1.25 under 1.5
1.5 under 1,75
1.75 under 2
2 under 2.25
2.25 under 2.5
2.5 under 2.75
2.75 under 3
3 under 3.5
3.5 under 4
4 and over
Total nontaxable returns
Grand total
taxable returns tilth adjusted gross in­
come under |5,000 and nontaxable returns
[axable. returns with adjusted gross in­
come of $5,000 and over
For footnotes

pp.22-24;

Total
number
of
returns

1,338,066
666,836
581,903
259,931
190,849
146,007
112,101

92,429
73,283
63,141
201,500
102,386
57,624j
60,238
28,920
15,659
9,438
6,095
4,039
2,818
6,353

Salaries 1
Annuties
and
Dividends 56/ Interest 36/ and
wages
1,110,424
1,351,48C
1,652,173
2,018,226
2,325,717
2,784,629
2,851,870
3,044,185
2,879,993
2,803,399
4,752,442
3,233,779
2,072,488
1,294,812
1,060,074
470,728
241,937
154,953
109,973
83,097
60,806
50,754
39,308
33,859
109,303
55,898
31,830
33,705
16,304
8,998
5,465
3,546
2,377
1,629
3,980
1,292
577
286
269
147
136
57
48
11
9
4
1
4

43,351
59,530
76,421
95,494
93,636
116,413
117,871
150,194
136,177
140,529
278,025
242,071
203,796
159,084
252,979
168,836
121,880
94,029
72,945
60,338
49,902
41,722
35,289
31,649
108,477
61,542
56,774
41,587
21,109
11,961
7,432
4,937
5,357
2,370
5,453
1,847
807
423
380
215
204
80
62
21
12
8
1
6

41.578,524

55,09C 3§/8,424
80,57S
13,29.
100,742
16,794
119,69r
19,462
129,551
18,69£
156,57£
19,51£
160,52C
16,01"
181,494
13,33£
176,81"
12,57]
182,16<
11,512
346,302
19,85C
285,962
15,590
215,590
12,733
161,460 38/8.586
245,462
12,323
157,098 38/6,955
106,523
5,068
81,606
3,811
62,676
2,987
50,580
2,188
41,149
1,930
36,931
1,578
29,435
1,388
25,848
1,221
4,077
88,563
49,633
2,204
30,210
1,404
33,892
1,843
17,524
942
10,079
619
6,570
414
4,222
303
2,885
220
2,121
170
4,839
444
1,715
165
737
65
570
33
37
362
197
20
193
14
75
6
58
8
22
1
11
3

46,731
60,955
77,501
98,021
109,836
129,104
138,845
152,226
146,999
156,481
301,665
241,283
171,525
117,299
148,294
87,373
56,608
43,209
32,208
25,711
21,135
17,947
14,618
13,065
41,928
22,615
13,093
14,523
7,385
4,101
2,556
1,654
1,165
810
1,911
635
266
139
144
75
80
36
26
5
4
4
1
3

-

6
_^_258jb23

299,072
49,548
4,315,873 5,834,374
1,380,164 1,039,304
1,267,231
934,583
1,237,479
911,220
947,112
747,120
1,004,754
811,126
692,832
576,606
751,900
622,435
415,039
354,456
434,046
375,450
240,496
211,113
341,395
297,174
125,297
105,765
67.796
52.365
10.922*639
55.099.008 47.657.623
51,275,101 45,076, 258

¿•448,646
2,210,012

3.885.126 329.518
2,793,726 '"2777077

3,823,907 2,581,565

1,238,634

1,091,400

for extent -to which data

"Number 5f return^ with —
~~~
Rents and royalties
Business and profession
Partnership
loss Net profitl Net loss

22,055
57,196
53,705
45,816
38,214
22,387
19,427
11,847
11,956
38/7.403
38/7,566
58/5.035
38/7,307
38/2,703
38/4.805

26,291
92,413
78,232
63,822
58,529
29,967
26,105
14,045
16,240
38/9,061
38/7,344
38/5,159
38/7.894
38/3,220
38/2.852

38/1.090
16,762
15,253
10,708
12,348
38/4,763
38/4,331
38/1,949
(39)
38/1,188
(39)
(39)
(39)
(39)

....mi.
52,441

30,552
137,720
100,066
89,231
77,085
42,081
58,533
28,055
23,862
16,045
14,645
10,376
18,278
38/9,184
38/5.579

s.ies.ose^
2,589,761
573,325

ea tima ted.

Table ». — Individual retaras for 1947, by taxable and non taxable ret
Frequency distributions of returns for each specific source of incon
for each type of tax payment, and for tax overpayment — continued

38/6.027
11,146
16,124
22,464
26,730
36,871
44,884
49,054
51,559
58,720
100,505
79,683
56,279
38,189
40,424
18,932
12,463
7'962
6,149
4,850
4,044
325
535
2,367
7,801
4,171
2,494
2,782
1,436
760
515
354
252
175
435
181
79
52
46
29
35
11
13
5
3

5,
,
Z

L
1
722.914
22,202
22,651
10,818
11,373
10,925
38/7.254
38/9.964
38/6.270
38/8.673
38/4,561
38/3.225
38/3.325
38/5,478
38/1.770
JltL
852.354 ”
727,675
124,679

85,104
92,923
161,211
199,368
214,275
259,934
237,265
279,515
241,898
244,620
422,734
322,208
247,212
198,882
242,579
165,520
109,365
79,269
60,749
45,037
36,925
28,877
22,681
19,883
58,533
28,762
14,856
14,268
6,375
3,064
1,700
1,037
660
424
875
244
108
59
48
25
21
11
10

38/6,134
38/6,447
11»
19,343
20,174
22,680
24,009
25,099
28,091
25,002
42,920
32,529¡
21,946
13,144
14,245
38/9,223
6,334
4,779
3,863
2,851
2,550
2,131
1.804
1.804
5,696
3,288
2,036
2,530
1,511
957
627
453
315
238
651
277
127
86

89
38
43
22

21,514
27,896
40,382
53,298
57,488
76,086:
68,894
88,841
83,776
82,004
146,858
124,697
92,200
75,427
112,006
74,185
56,589
45,567
36,647
31,134
25,921
21,829
18,636
16,653
55,945
31,550
18,801
20,495
10,461
5,758
3,486
2,219i
1,450
934
2,083
616
231
121
106
47
55
19

38/1,955
38/2,624
38/3,769
38/4,201
38/3,111
38/5,487
38/5,302
38/7,031
38/6,350
38/6,750
12,074
38/9,115
38/6,685
58/5.660
38/5,562
38/3,251
3,141
2,657
2,081
1,620
1,415
1,074
1,046
984
3,093
1,778
1,105
1,340
717
416
288
204
156
122
247
107
62

11

4

Sales or exchanges
of capital assets
Net gain
Net loss
15,973
20,714
29,798
^2,109
47,326
60,480
70,059
76,863
81,195
83,970
156,860
141,642
109,684
86,443
121,986
81, 767
58,958
45,227
35,246
27,810
24,291
19,568
17,105
15,117
50,175
29,687
18,190
21,295
11,625
6,702
4,332
2,955
2,062
1,425
3,498

38/5,325
38/7,722
10,454
13,975
15,789
18,046
17,691
22,744
20,109
21,104
37,044
34,906
29,398
21,234
33,318
25,596
20,147
16,768
14,956
11,782
9,957
8,711
7,295
6,938
25,185
14,644
9,394
10,948
5,586
3,298
2,112

1,364

1,200

535
284
305
176
157
53
44
18

1
2
3
4
5
6

7
8

9
10

11

12
13
14
15
16
17
18
19
20

21

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

4.149.119

368.062 1^652.923

112.691

1.624.931

507.678

38/9,014
307,718
233,464
283,705
504,671
208,139
208,3241
135,746
151,650
71,477
70,194
37,280
56,376
22,263
17.498
2.117.519
.266.658
5,324,666

228,095 38/6,545
51,426
37,489
20,611
31,503
23,914
30,837
19,452
30,287
15,081
25,772
12,281
30,443
38/9,725
18,003
38/8,505
20,116
38/5,212
12,113
38/5,710 38/9,468
38/2,115 38/5,835
3g/2,248, 58/6,245
(39)
3§/2,482
38/1,506 38/2,020
406.587
269.158
774.649 1.902.081
706,093 1,308,519

40,010
38/8,580
38/3,200
38/3,254
38/2,622
38/3,546
38/3,048
3§/l,489
58/1,510
(39)
(39)
(39)
(39)
(39)
70.420
183.Ill
150,534

28,398
28,753
25,455
27,025
26,961
18,726
17,919
14,032
16,698
38/8,938
38/9,340
38/5,212
38/7,813
38/2,891
58/3.761
241.922
1.866.853
1,265,038

. 26,495
21,300
10,585
38/8,965
3§/7,S81
38/5,763
38/4,645
38/2,675
3§/4,408
38/2,358
38/2,178
3§/l,700
38/1,732
5§/l,139
38/1,549
102.671
blu.349
378,212

67

32,577

601,815

232,137

68

941,972

68,556

593,562

im

50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66

For footnot.es.

pp.22-24;

for ex-ten-t to which data.

stimated, see pp. 4

m
Table 8. > Individual returns for 194*7, by taxable and non taxable r
Frequency distributions of returns for each s p e d i l o source of Inc
for each type of tax payment, and for tax overpayment — continued

Adjusted gross income classes 1/
(Thousands or dollars)

Sales or exchanges
of property other
than capital assets
Ket gain Net loss

Miscella­ Tax
neous
withheld
income 57/

1
62.986

1
289.091

40,673 1,022,868
45,640 1,255,889
59,476 1,528,762
72,306 1,911,645
80,007 2,225,599
108,475 2,686,586
109,609 2,774,558
117,785 2,965,995
117,817 2,817,915
121,758 2,742,812
224,251 4,641,516
168,815 5,177,047
118,368 2,052,290
78,655 1,266,818
40,748 1,027,058
450,144
2?,756
17,736
227,960
15,947
145,148
101,867
10,588
7,984
77,469
6,617
55,982
5,407
46,682
4,592
55,989
4,256
50,860
13,981
100,582
7,522
51,065
4,614
28,816
5,226
50,599
2,644
14,702
1,499
8,101
1,011
4,885
658
5,200
449
2,097
554
1,449
5,581
628
197
1,075
107
468
41
241
207
75
127
53
40
100
45
21
6
55
8
5
8
3
2
5
1
1
2
2
1.642.525 S5.498.450

14,505
38/4.285
58/1.818
58/2,616
58/2.498
58/1.575
38/1,456
38/1.278
38/1.268
(39)
(39)
(39)
(39)
(59)
(39)
55.044
98.030
78,492

58/1.828
38/4.611
58/4,150
58/4,260
58/4,249
58/2,500
58/1,538
38/1.215
38/1.759
(39)
(39)
(39)
(39)
(39)
(59)
30.027
319.118
185,635

38/8,766
41,905
127,723 5,581,396
835,709
45,744
710,147
45,236
41,157
672,890
542,472
30,021
598,831
35,401
25,316
411,615
25,669
461,709
258,064
12,250
296,241
14,344
3§/8,514
164,033
11,267
248,976
38/5.089
90,550
38/3.166
41.323
437.663 8.955.859
2.079.988 44.454.309
1,901,258 42,003,957

19,538

133,485

(59)
(59)
38/1,561
58/2.689
58/2.776
2§/2,409
38/3,521
58/4.266
58/5.454
58/5,466
58/7.581
58/5.000
58/5,591
58/2.450
58/4,017
5§/2,555
1,679
1,442
1,401
1,010
875
589
58/499
58/584
1,751
1,026
605
724
575
205
145
99
62
55
155
66
26
16
17
8
11
4
5

38/5,550
58/6.404
58/9.126
58/7.808
10,455
53/9,914
J8/9,094
12,182
10,281
10,525
17,864
19,775
16,059
10,811
21,158
15,476
10,907
8,817
7,180
6,417
5,592
4,434
4,155
3,346
13,155
8,184
5,510
6,557
5,697
2,264
1,525
1,046
727
564
1,649
654
277
171
161
87
87
41
27
14
6
1
1
-

178,730

For footnotes, see pp.22-24; for extent to which data are estimated, see pp. 4-5.

2,450,352

Payments
on 1947
decla­
ration 22/

Overpayment
Tax due
(refund, or
at time
of filing credit on
1948 tax)
986,547
1,126,526
1,277,781
1,476,527
1,622,786
1,864,178
1,805,696
1,965,969
1,817,684
1,818,521
2,900,785
1,924,549
1,206,468
742,911
566,157
225,605
118,567
■75,758
52,524
58,650
28,577
25,098
17,706
15,280
48,454
25,771
12,956
15,265
6,555
5,554
1,949
1,509
800
626
1,596
460
202
105
107
51
56
27
16
4
2
. 1

45,489
250,248
93,042
545,Q27
501,972
132,592
650,808
158,781
759,640
186,615
970,412
229,975
235,084 1,053,441
259,915 1,087,268
254,567 1,062,709
252,796 1,053,646
458,006 1,957,499
584,815 1,467,688
504,053 1,017,528
251,165
696,686
740,686
567,459
268,866
429,096
257,515
205,475
159,289
181,940
127,864
154,868
104,$22
103,502
81,546
84,406
75,156
67,769
58,786
54,409
51,852
46,895
175,427
149,526
92,825
77,174
55,828
45,921
’57,545
46,254
27,882
22,212
15,248
12,178
9,215
7,405
5,958
4,757
5,947
5,206
2,775
2,164
6,272
4,909''
1,577
2,043
898
690
457
555
418
514
181
232
161
214
57
84
63
48
19
25
12
10
7
8
1
1
6
6
5.200.701 15.310.626

23.807.250

1
2
3
4
5
6
7
8
9
10
11
12
15
14
15
16
17
18
19
20
21
22
25
24
25
26
27
28
29
50
31
32
33
34
55
56
57
58
59
40
41
42
43
44
45
46
47
48
49

95,888
61,451
•
5,621,519
46,426
29,455
860,518
—
757,702
32,680
•
702,878
35,063
—
24,600
563,275
•
26,774
620,820
423,742
15,260
•17,916
475,941
38/8.279
264,931
10,214
304,049
38/6.220
168,630
38/7.735
255,180
•
93,555
38/3.398
•
44.304
38/3.539
329.010
9.232.532
5.529.711 15.310.626 33.059.782
5,575,901 12,834,372 31,767,058

50
51
52
S3
54
55
56
57
58
59
60
61
62
65
64
65
66
67

1,955,810

68

2,476,254

«
—

1,272,724

t;

126

Taxable returnsi
0.5 under 0,75
(59)
1
2
0.75 under 1
(59)
58/2.527
1 under 1.25
5
4
1.25 under 1.5
58/5.078
5
1.5 under 1.75
58/5,780
6
1.75 under 2
58/5,'607
7
2 under 2.25
58/4.765
8
2.25 under 2.5
58/5,258
2.5 under 2.75
9
58/5,178
10
2.75 under 5
5§/5,476
11,008
11
5 under 5.5
12
5.5 under 4
58/7.592
4 under 4.5
58/7.700
15
14
4,5 under 5
58/4.752
IS
5 under 6
58/7.679
16
6 under 7
58/4,408
17
7 under 8
2,579
18
8 under 9
1,928
19
9 under 10
1,508
10 under 11
20
1,120
23.
851
11 under 12
22
12 under 15
757
618
25
15 under 14
24
14 under 15
60C
25
15 under 20
1,475
26
20 under 25
774
27
25 under 50
418
28
50 under 40
42C
29
40 under 50
195
50
50 under 60
115
51
67
60 under 70
52
70 under 80
46
55
80 under 90
24
54
90 under 100
22
55
100 under 150 '
68
17
56
150 under 200
57
200 under 250
10
58
250 under 500
5
59
500 under 400
14
4
40 1 400 under 500
41
5
500 under 750
42
750 under 1,000
5
45
2
1,000 under 1,500
44
1,500 under 2,000
1
45
2,000 under 5,000
46
5,000 under 4,000
47
4,000 under 5,000
48
5,000 and over
49
Total taxable returns
... 91*628
Ncntaxable returnsi 55/
No adjusted gross income 5/
58/5.265
50
Under 0.5
51
58/5,575
52
0.5 under 0.75
58/2,408
55
0.75 under 1
58/2.224
54
1 under 1.25
58/5,198
55
1.25 under 1.5
58/2,103
56
1.5 under 1.75
58/5,011
57
58/2.624
1.75 under 2
58
2 under 2.25
58/2.688
59
58/1,024
2.25 under 2.5
(59)
60
2.5 under 2.75
61
2.75 under 5
(59)
62
5 under 5.5
58/1.425
(39)
65
5.5 under 4
(39)
64
4 and over
Total nontaxable returns
29.823
65
121.431
66
Grand total
67 Taxable returns with adjusted gross in96,135
come under $5,000 and nontaxable returns
25,296
68 Taxable returns with adjusted gross
income of $5.000 and over

Income
from
estates
and
trusts

— Individual returns for 1947, by taxable and nontaxable returns, by adjusted gross income classes, and by types of tax: Number of returns, adjusted
gross income, exemption, tax liability before and after credits, tax credits, average tax, and effective tax rate

Adjusted gross income classes 1/

1

2

3
4
e
6
7
8
9

10
11
12
IS
14
15
16
17
18
19

20
21

22
23
24
25
26
27
28
29
30
31
32

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

Taxable returns!
0,6 under 0,75
0,75 under 1
1 under 1.25
1.25 under 1,5
1.5 under 1,75
1.75 under 2
2 .under 2*25
2.25 under 2,5
2.5 under 2,75
2.75 under 3
3 under 3,5
3.5 under 4
4 under 4,5
4.5 under 5
5 under 6
6 under 7
7 under 8
8 under 9
9 under 10
10 under 11
11 under 12
12 under 13
13 under 14
14 under 15
15 undei* 20
20 under 25
25 uxxier 30
SO under 40
40 under 50
50 under 60
60 under 70
70 under 80
80 under 90
90 under 100
100 under 160
150 under 200
200 under 250
250 unler 300
300 under 400
400 under 500
600 under 750
750 under 1,000
1.000 under 1,500
1,500 under 2,000
2.000 under 3,000

3.000 under 4,000
4.000 under 5,000
5.000 and over
Total taxable returns

50
51
62
53
54
55
56
67
58
59
60
61
62
63
64

tontaxable returns: 33/
No adjusted gross inoome 5/
Under 0,5
0,5 under 0.75
0,75 under 1
1 under 1.25
1.25 under 1.5
1.5 under 1.75
1.75 under 2
2 under 2.25
2.25 under 2.6
2.5 under 2,75
2.75 under 3
3 under 3.6
3.5 under 4
4 and over
Total nontaxable returns

Total
number
of
returns

1,261,473
1,529,096
1,889,017
2,289,470
2,585,606
3,074,404
3,112,744
3,326,367
3,126,412
3,046,291
5,140,000
3,555,846
2,320,747
1,498,144
1,338,066
666,836
381,903
259,931
190,849
146,007
112,101
92,429
73,283
63,141
201,300
102,386
57,624
60,238
28,920
15,659
9,438
6,095
4,039
2,818
6,353
2,057
901
459
426
233
218
84
64
23
12
8
i

6
41,678,524

299,072
4,315,873
1,380,164
1,267,231
1,237,479
947,112
1,004,764
692,832
751,900
415,039
434,046
240,496
341,393
125,297
67,796
13,620,484

Adjusted
gross
income 2 /

(Adjusted gross inoome classes and money figures, except average tax,
All returns
Effective
Credits
Total
Total
for
tax rate
Amount of
tax
foreign
tax
Average
(percent)j Number
total
exempbefore
tax paid after
based on
of
credits
tax 40/
tion 21/
and tax
oredits
adjusted
returns
paid at
gross
income
source
20,189
79,423
146,933
240,865
354,950
489,803
604,723
687,231
743,046
767,894
1,504,759
1,262,839
994,250
767,643
870,745
585,006
427,843
556,271
311,986
280,064
248,553
233,513
209,449
202,396
850,713
657,516
512,257
765,798
524,346
375,216
284,062
221,096
171,959
137,089
412,156
202,306
118,054
75,687
86,473
61,589
78,267
45,298
48,634
24,077
17,797
14,606
2,082
24,907

1
3
3
8
9
18
42
105
104
208
368
124
302
170
314
301
212
201
158
781
266
172
213
168
262
668
1,179
1,703
752
666
783
787
449
286
1,065
378
466
303
79
151
567
249
119
340
167
109

135.301.876 44,262,477 18,092,356

819,l?t
1,333,002
2,148,312
3,147,302
4,212,613
5,761,567
6,612,561
7,894,705
8,198,524
8,752,952
16,637,166
13,277,445
9,825,570
7,091,760
7,271,956
4,299,428
2,853,596
2,200,807
1,807,832
1,528,747
1,286,555
1,153,377
987,384
914,602
3,455,452
2,276,347
1,671,576
2,067,030
1,284,874
853,056
609,146
465,014
341,894
266,643
759,938
352,644
200,113
125,243
145,789
103,466
129,747
72,064
77,667
38,963
26,894
26,354
4,958
40,120

8/659,193
1,169,816
830,870
1,115,022
1,371,136
1,304,196
1,618,775
1,299;998
1,596,094
985,729
1,139,668
689,032
1,095,526
466,296
312,240

630,737
764,548
1,136,468
1,526,591
1,866,197
2,522,767
2,664,684
3,356,597
3,314,947
3,675,375
6,743,142
5,048,331
3,452,998
2,249,343
1,963,635
936,981
526,984
352,786
256,718
196,593
148,201
122,219
96,232
82,845
262,919
131,261
72,604
73,641
33,989
17,767
10,416
6,675
4,239
2,908
6,263
1,906
792
396
381
185
158
68
66
23
9
7
2
6

544,427
2,841,964
1,426,448
1,642,314
1,806,866
1,680,060
1,876,766
1,625,192
1,710,602
1,086,668
1,165,129
710,277
1,068,036
440,476
253.916

9/14,434,206 19,578,115

«
•
•
•
•
-

108

20,188
79,420
146,930
240,857
354,941
489,785
604,681
687,126
742,942
767,686
1,504,391
1,262,715
993,948
767,473
870,431
584,705
427,631
366,070
311,828
279,283
248,287
233,341
209,236
202,238
850,451
656,648
611,078
754,095
523,593
3 7 4 ,5 4 9
283,279
220,309
171,610
136,803
411,090
201,928
117,688
76,384
86,394
61,438
77,700
46,049
48,616
23,737
17,630
14,497
2,082
24,802

16
52
78
105
137
159
194
207
238
252
293
355
428
512
661
877
1,12 0
1,370
1,634
1,913
2,215
2,525
2,855
3,203
4,226
6,413
8,869
12,519
18,105
23,919
30,015
36,146
42,463
48,546
64,708
98,166
130,608
164,236
203,280
263,682
356,422
536,298
758,047
1,032,043
1,469,167
1,612,125
2,082,000
4,133,667

16,074

18,076,281

435

-

•
•
.
.
•
-

-

•
•
•
•
.
•

•
.
«

55/599,008 9/149,736,082 63,840,592 18,092,355
Taxable returns frith adjusted gross in­ 51,276,101 9/ 1 IO ,146,816 58,530,837 8,664,548

•
•

-

•

m

id

.

—

•
m
-

5,825,907

59,589,264

5,309,756

9,427,808

Normal tax
Amount of and surtax
exemp­
before
tion 21/ credits

1,261,473
1,529,096
1,889,017
2,289,470
2,585,606
3,074,404
3,112,744
3,326,367
3,125,412
3,046,291
5,140,000
3,555,846
2,320,747
1,498,144
1,338,066
666,836
381,903
259,931
190,849
146,007
112,101
92 ,429
73,283
63,141
200,863
93,355
45,870
43,766
19,104
9,734
5,514
3,390
2,134
1,489
2,950
890
372
180
124
58
62
32
20
5
5

819,139
1,333,002
2,148,319
3,147,302
4,212,613
5,761,567
6,612,551
7,894,705
8,198,524
8,752,952
16,637,165
13,277,445
9,825,570
7,091,760
7,271,956
4,299,428
2,853,596
2,200,807
1,807,832
1,528,747
1,286,555
1,153,377
987,384
914,602
3,447,022
2,069,381
1,249,292
1,498,191
846,833
529,521
355,728
252,861
180,514
140,750
351,491
152,523
82,302
49,286
42,550
26,660
57,787
27,667
24,210
8,528
11,461

630,737
764,548
1,136,468
1,526,591
1,866,197
2,522,767
2,664,684
3,356,597
3,314,947
3,675,375
6,743,142
5,048,331
3.452,998
2,249,343
1,963,635
936,981
526,984
352,786
256,718
196,593
148,201
122,219
96,232
82,845
262,616
122,619
59,658
55,400
23,273
11,518
6,334
3,621
2,328
1,680
2,970
798
326
152
102
45
42
26
16
6
2

20,189
79,423
146,933
240,865
354,960
489,803
604,723
687,231
743,046
767,894
1,504,759
1,262,839
994,250
767,643
870,745
585,006
427,843
356,271
311,986
280,064
248,553
233,513
209,449
202,396
848,155
591,767
404,489
546,569
347,428
236,394
168,477
125,506
93,320
74,601
198,282
92,744
62,227
31,882
27,833
17,156
26,043
19,277
17,368
6,056
8,404

1
3
3
8
9
18
42
105
104
.208
368
124
302
170
314
301
212
201
158
781
266
172
213
158
260
654
939
1,239
422
291
283
507
258
187
417
195
263
89
29
54
312
173
81
190
17

«
-

-

• -

-

-

•
•
•
•
•
•
•
•

•
•
•
•
•
-

-

Effective
tax rate
(percent),
based on
adjusted
gross
income

Normal tax
and surtax
after
credits

Average
normal
tax and
surtax 40/

20,188
79,420
■146,930
240,857
354,941
489,785
604,681
687,126
742,942
767,686
1,504,391
1,262,715
993,948
767,473
870,431
584,705
427,631
356,070
311,828
279,283
248,287
233,341
209,236
202,238
847,896
591,103
403,550
545,330
347,006
235,103
168,194
124,999
93,062
74,314
197,865
92,549
51,964
31,793
27,804
17,102
25,731
19,104
17,287
5,846
8,387

16
52
78
105
137
159
194
207
238
252
293
355
428
512
651
877
1,12 0
1,370
1,634
1,913
2,215
2,525
2,855
3,203
4,221
6,332
8,798
12,460
18,164
24,153
30,503
36,873
43,609
49,909
67,073
103,988
139,688
176,628
224,226
294#862
415,016
597,000
864,350
1,169,200
1,677,400

2.46
5.96
6.84
7.65
8.43
8.50
9.14
8.70
9.06
8.77
9.04
9.51
10 .12
10.82
11.97
13.60
14.99
16.18
17.25
18.27
19.30
20.23
21.19
22.11
24.60
28.56
32.30
36.40
40.98
44.40
47.28
49.43
51.55
52.80
56.29
60.68
63.14
64.51
65.54
66.65
68.19
69.30
71.40
66.55
73.18

-

•
-

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

393

12.41

49

«
«
-

-

-

11,104 16,312,120

.

.

•

•

.

-

-

-

-

66

-

67

-

12.07
7.87

-

*

-

-

14,609

9,415,199

2,462

23.78

-

-

-

-

•
-

«
-

—

-

—
-

•
—
-

50
51
52

-

-

328
Ì69

-

22

-

L8,076,281
8,663,083

-

21

-

•

—
-

—
—
-

11
12
13
14
16
16
17
18
19
20

-

•
«
•
-

-

-

-

3
4
5
6
7
8
9
10

-

-

-

1

2

-

16,074
1,465

oome under $5,000 and nontaxable re—
Taxable returns idtii adjusted gross lnr come of >5,000 and over

Credits
for
foreign
tax paid
and tax
paid at
source

Adjusted
gross
income 2/

13.36 41,509,080 131,400,504 44089,546 16,325,224

m
m
m
m
m
m
m
•
-

•
-

•
-

_

Grand total

•
•
•

2 «46
5.96
6.84
7.65
8.43
8.50
9*14
8.70
9.06
8.77
9.04
9.51
10.12
10.82
11.97
13.60
14.99
16.18
17.25
18.27
19.30
20.23
21.19
22.11
24.61
28.85
32.62
36.48
40.75
43.91
46.50
46.42
50.16
51.31
64.10
57.26
58.76
60.19
69.26
59.36
59.89
62.51
62.47
60.92
65.56
6 6 .0 1
41.99
61.82

in thousands of dollars)

*

-

*

-

-

53
54
65

66
67

68
59
60
61
62
63
64
66

68

5,825,907

59,589,264

5,509,756

9,427,808

14,609

9,415,199

of >5.000 and ove

Table 4« - Individual returns for 1947, by taxable and nontaxable returns, by adjusted gross income classes, and by
, types of taxi Number of returns, adjusted gross income, exemption, tax liability before and after oredits, tax
credits, average tax, and effective tax rate - Continued

Adjusted gross
inoome classes l/
Taxable returns t
Under 15
15 under 20
20 under 25
25 under 50
30 under 40
40 under 50
50 under 60
60 under 70
70 under 80
80 under 90
90 under 100
100 under 150
150 under 200
200 under 250
250 under 300
300 under 400
400 under 500
500 under 750
750 under 1,000
1,000 under 1,500
1,500 under 2,000
2,000 under 3,000
3,000 under 4,000
4,000 under 5,000
5,000 and over
26

Total

(Adjusted gross income classes and money figures, except average tax, in thousands of dollars)
Returns with alternative tax 42/
Alternative tax
before credits
Excess of net
50 percent Credits for
Mumber Adjusted Met
Amount of Partial of excess foreign tax Alternative Average
long-term
of
oapital gain exemp­
paid and
tax after alternative
of net
gross
tax
tion 21/
returns income 2/ income 31/ over net
credits
tax 40/
long-term tax paid
short-term
capital
at source
capital loss
gain
sjS
38/437
“9,031
11,754
16,472
9,816
5,925
3,924
2,705
1,905
1,329
3,403
1,167
529
279
301
175
156
52
44
18
7
8
1
6

8,430
206,966
322,283
568,839
438,041
323,534
253,418
202,153
161,380
125,893
408,447
200,121
117,811
75,957
103,239
77,806
92,010
44,497
53,447
30,435
15,433
26,354
4,958
40,120

Lj.
8,050
195,403
298,256
521,154
398,466
293,467
229,058
181,633
144,984
112,046
363,899
175,997
103,218
67,108
90,155
68,722
79,228
38,148
48,370
24,893
13,685
22,873
4,172
34,546

69,444 3,901,572 3,517,530

_
198
8,603
22,507
52,385
48,021
43,972
35,482
31,550
27,161
21,247
86,019
49,781
34,018
22,734
36,624
31,962
36,220
16,071
26,435
8,758
6,260
14,460
4,147
13,122
677,738

Effective
tax rate
(percent),
based on
adjusted
gross
income

OB

2,459
61,457
96,514
183,036
152,906
117,835
97,844
79,815
65,058
51,964
170,863
84,671
48,818
32,438
40,328
28,452
34,114
17,985
18,048
13,662
6,263
7,376
8
18,346

99
4,302
11,254
26,193
24,011
21,986
17,741
15,775
13,581
10,624
43,010
24,891
17,009
11,367
18,312
15,981
18,110
8,036
13,218
4,379
3,130
7,230
2,074
6,561

2
214
240
464
330
375
500
280
191
99
648
183
203
214
50
97
255
76
38
150
150
109
105

2,556
65,545
107,528
208,765
176,587
139,446
115,085
95,310
78,448
62,489
213,225
109,379
65,624
43,591
58,590
44,336
51,969
25,945
31,228
17,891
9,243
14,497
2,082
24,802

5,849
7,258
9,148
12,674
17,990
23,535
29,328
35,235
41,180
47,020
62,658
93,727
124,053
156,240
194,651
253,349
333,135
498,942
709,727
993,944
1,320,429
1,812,125
2,082,000
4,133,667

30.32
31.67
33.36
36.70
40.31
43.10
45.41
47.15
48.61
49.64
52«20
54.66
55.70
57.39
56.75
56.98
56.48
58.31
58.43
58.78
59.89
55.01
41.99
61.82

72,931 1,430,262

338,869

4,970

1,764,161

25,404

45.22

303
8,642
12,946
18,241
10,716
6,249
4,082
2,754
1,911
1,328
3,293
1,107
466
244
279
140
116
42
40
17
7
7
2
6

26

For footnotes, see pp»22-241 for extent to which data are estimated, see pp. 4-5*

127

Table 5« - Individual returns for 1947, ty taxable and nontaxable returns, by adjusted gross income classes, by marital status, and ty sex: Number
of returns, adjusted gross Income, exemption, and tax liability

Adjusted gross income classes l/

Taxable returns :
0.5 under 0.75
0.75 under 1
1 under 1.25
1.25 under 1.5
1.5 under 1.75
1.75 under 2
2 under 2.25
2.25 under 2.5
2.5 under 2.75
2.75 under 3
3 under 3.5
3.5 under 4
4 under 4.5
4.5 under 5
5 under 6
6 under 7
7 under 8
8 under 9
9 under 10
10 under 11
11 under 12
12 under 13
15 under 14
14 under 15
15 under 20
20 under 25
25 under 30
30 under 40
40 under 50
50 under 60
60 under 70
70 under 80
80 under 90
90 under 100
100 under 150
150 under 200
200 under 250
250 under 300
300 under 400
400 under 500
500 under 750
750 under 1*000
1*000 under 1*500
1,500 under 2,000
2*000 under 3*000
3,000 under 4,000
4,000 under 5,000
5 000 and over
Total taxable returns
Nontaxable returns : 33/
No adjusted gross income 5/
Under 0.5
0.5 under 0.75
0.75 under 1
1 under 1.25
1.25 under 1.5
1*5 under 1.75
1,75 under 2
2 under 2.25
2.25 under 2.5
2.5 under 2.75
I 2.75 under 3
! 3 under 3.5
1 3.5 under 4
1 4 and over
1

Total nontaxable returns
Grand total

1Taxable

returns with adjusted gross In—

l come under $5.000 and nontaxable returns
l Taxable returns -with adjusted gross in—
1
come of $5.000 and over

Total
number of
returns

1,261,473
1,529,096
1,889,017
2,289,470
2,585,606
3,074,404
3,112,744
3,326,367
3,125,412
3,046,291
5,140,000
3j555^846
2,320,747
1^498^144
1,338,066
666,836
38l',903
259,931
190,849
146,007
112,101
92,429
73,283
63,141
201,300
102,386
57,624
60,238
28,920
15,659
9,438
6,095
4,039
2,818
6,353
2,057
901
459
425
233
218
84
64
23
12
8
1
6
41.578.524

All returns
Amount
Adjusted
jf exempgross
income 2/
tion 21/

819,139
1,333,002
2,148,319
3,147,302
4,212,613
5,761,567
6,612,551
7,894,705
8,198,524
8,752,952
16,637,165
13,277,445
9,825,570
7,091,760
7,271,956
4,299,428
2,853,596
2,200,807
1,807,832
1,528,747
1,286,555
1,153,377
987,384
914,602
3,455,452
2,276,347
1,571,575
2,067,030
1,284,874
853,055
609,146
455,014
341,894
266,643
759,938
352,644
200,113
125,243
145,789
103,466
129^747
72,064
77,657
38,963
26,894
26,354
4,958
40.120

Joint returns 43/ of
Adjusted
Number
of
gross
income 2/
returns

Total
tax liability

y

«
630,737
20,188
764,548
79,420
1,136,468
146,930
226,400
240,857
441,547
1,526,591
1,866,197
354,941
606,744
489,785
924,815
2,522,767
604,681 1,025,039
2,664,684
687,126 1,419,843
3,356,597
742,942 1,500,314
3,314,947
767,686 1,718,226
3,675,375
6,743,142 1,504,391 3,329,618
5,048,331 1,262,715 2,530,959
993,948 1,700,520
3,452,998
767,473 1,108,545
2,249,343
870,431
913,918
1,963,635
584,705
427,648
936,981
427,631
234,304
526,984
152,955
352,786
356,070
311,828
108,799
256,718
279,283
80,367
196,593
248,287
59,638
148,201
48,739
233,341
122,219
209,236
36,883
96,232
31,371
202,238
82,845
95,890
850,451
262,919
44,726
656,648
151,261
511,078
22,874
72,604
754,095
¡?0,98.r
73,641
523,593
8,896
33,989
374,549
17,767
4,140
283,279
10,416
2,192
1,283
220,309
6,575
756
171,510
4,239
136,803
495
2,908
411,090
956
6,263
201,928
252
1,905
117,588
89
'792
75,384
596
49
86,394
39
381
61,438
22
185
77,700
22
158
45,049
4
68
48,515
56
5
23,737
2
23
17,630
9
14,497
7
2
2,082
1
6
24.802

135.301.876 44.262.477 18.076.281 18.830.650

268,762
607,714
995,524
1,734,796
2,181,134
3,371,355
3,940,984
4,940,179
10,795,835
9,457,537
7,198,945
5,246,284
4,962,620
2,753,063
1,749,812
1,294,403
1,029,850
841,063
684,191
608,058
496,893
454,353
1,641,143
992,812
622,534
716,892
394,042
225,030
141,281
95,540
63,892
46,846
111,273
42,962
19,776
13,461
13,168
9,827
12,368
3,376
6,265
5,341
»
4,958

husbands and wives
Imount
of exemp«* Tax lia­
tion 2l/ bility

y

226,400
441,547
665,085
1,125,511
1,285,341
2,026,312
2,155,766
2,688,218
5,353,388
4,230,45?
2,934,360
1,926,872
1,610,718
740,594
404,785
264,309
187,800
140,142
103,075
84,578
64,464
55,146
168,404
78,829
40,502
37,218
15,578
7,255
3,862
2,237
1,303
835
1,597
432
144
74
59
33
32
9
7
4
—

2

—

3,489
18,877
41,381
76,705
120,761
178,990
247,157
313,961
781,571
769,508
642,961
511,225
530,913
338,636
239,463
192,450
164,191
142,157
122,950
115,009
98,822
94,251
381,362
274,059
195,739
255,272
159,227
98,720
66,127
46,970
32,486
24,622
61,338
25,038
11,888
8,253
7,292
5,494
7,172
1,827
3,386
2,245
2,082

Number
of
returns
32,983
40,284
57,769
70,330
81,983
105,840
140,454
174,366
188,687
195,523
360,655
237,956
154,656
100,699
92,696
55,879
34,011
24,967
20,157
16,932
13,139
12,098
10,189
9,000
34,474
20,609
13,896
16,700
9,032
5,369
3,344
2,250
1,588
1,102
2,592
877
377
201
169
92
79
34
' 52
11
7
4
3

70.794.142 29.073.277 7.416.027 2.544.095

Separate returns of husbands and wives 44/
Women
Uen
Adjusted Amount
Amount
Adjusted
Tax liaTax lia- Number
of exemp­ bility
gross
bility
returns income 2/ tion 21/
Income 2/ tion 21/

y

y

16,492
21,349
35,336
20,142
33,718
65,778
97,098
43,573
55,653
153,873
76,248
198,618
299,422 101,925
414,703 135,308
495,510 148,748
562,449 161,844
1,165,955 ■308,335
888,645 217,869
654,183 143,856
477,539
95,775
504, 691
91,195
361,756
51,932
33,383
255,602
24,437
211,529
20,163
191,410
177,285
17,435
150,844
13,474
12,361
150,879
137,246
10,849
9,587
150,350
37,914
595,144
460,098
22,939
379,578
15,499
575,580
18,534
9,867
402,206
5,718
292,905
216,031
3,551
2,356
167,981
134,659
1,599
104,161
1,143
310,700
2,525
150,117
804
85,550
359
175
54,794
57,961
171
77
41,109
46,724
55
27
29,385
39,186
51
18,895
12
15,737
7
12,396
3
“
4
24.195

522
2,110
4,564
7,895
11,805
18,857
30,725
43,797
54,817
64,067
138,057
109,146
84,093
63,689
70,437
55,301
41,102
36,220
34,660
33,570
29,916
31,200
29,327
29,082
146,723
131,338
121,889
207,137
161,215
126,820
99,058
80,457
67,128
53,175
167,210
85,621
48,808
32,642
34,714
24,008
27,953
18,091
25,244
11,091
9,816
6,824
*
14.587

111,262
158,155
188,190
232,070
273,488
278,413
260,950
213,721
139,363
91,930
100,753
47,639
35,793
22,324
28,102
19,462
12,865
9,888
7,602
6,202
4,734
4,071
S,S77
2,904
9,784
5,318
3,268
3,587
1,870
1,142
750
475
338
250
618
214
105
47
59
28
29
12
6
4
“
“
2

11.993.142 1.967.638 2.726.508 2.279.364

71,972
138,485
213,147
319,402
444,124
521,406
553,508
506,089
364,333
263,457
323,890
177,471
143,332
105,886
153,734
125,578
96,029
83,659
71,956
65,008
54,350
50,836
48,272
42,085
168,753
118,606
89,157
123,499
83,184
62,254
48,440
35,502
28,694
23,657
73,609
36,825
23,424
12,725
20,338
12,447
17,843
10,356
7,374
6,802
—
“
10.894

55,631
79,078
100,748
132,738
1S7,885
162,951
156,303
129,514
85,353
57,310
63,477
30,656
23,420
15,061
18,155
12,010
8,585
6,453
5,006
4,208
3,296
2,746
2,451
2,025
6,959
3,669
2,340
2,567
1,351
855
556
558
254
195
481
161
75
34
40
17
19
13
5
4
—
—
“
2

1,875
8,516
16,808
29,141
45,530
57,126
64,232
61,011
45,485
33,649
42,892
24,706
20,303
15,634
23,967
21,020
17,109
15*658
14,178
13*354
11,563
11,381
11,122
10,087
45,007
36,331
50,118
46*428
34,426
27,562
22,576
17,334
14,175
11,962
39*421
21,374
13,631
7*550
’12,058
8,106
10,660
7,324
4,249
4*222
“
.~
6,440

5.952.388 1.335.006 1.037.301

8/9,746
5,766
6,722
8/28,999
- 38/6,595
- 3§/9,076
62,059 15)9,948
*236,421
19,903
41,692
66,285
59*373
56*521
67,126
15,529
22,805
25,966
31,056
37,778
35,677
21,844
16,491
18,553
34,212
39,293
50,822
21,906
27,365
19,794
24*634
-26*622
17,928
21,572
18,114
15,148
18,746
18,675
11,701
27,749
28,205
17,246
8*953
8*867
18,186
- 38/9.136
17,007
- 58/4,757
7,145
6,653
■*
22,892
- 3§/3,359
21,429
10,108
3*336
2*657
38/1,409
14,078
- 38/5,567
15,204
(46)
(46)
(46)
12,872
15,987
- 58/5.329
•
(46)
(46)
(46)
**
- 38/2,711
7,412
7,772
(46)
(46)
(46)
- 38/2,861
8,598
■*
9,175
(46)
(46)
(46)
—
(46)
“
(46)
■*
(46)
(46)
(46)
_
- ___ (ML.
(46)
(46)
(46)
_ 207.269
_
418.179 9/228.472 344.454
9/180.330 258.197
7.359.308 9/11.177.050 14.651.590
15.520.484 9/14.434.206 19.578.115
55.099.008 9/149.736.082 651840,592 18,076,281 26.189.958 9/81.971.192 43.724.867 7.416.027 2.551.364 9A2.175.472 2.225.835 2,726.508 2.697.543 9/6.180.860 1.679.460 1.037.301
51,275,101 9/110.146.816 58,530,837 8.663,085 23,891,678 9/61.916,099 39,710,845 3,706,586 2.149.454 9/5,690,788 1,817,680 634.144 2,570,230 9/4,574,974 1,594,576 466.908
299,072
4,315,873
ll380^164
1*267^251
l',237',479
9471112
1,004,754
‘692j832
751,900
415',039
434,046
240,496
341,393
125,297
87.796

8/559,195
1,169,815
'830,870
1,115,022
1,571,136
1,304,196
1^618^775
1^299,998
lj595,094
985,729
1,139,668
689,032
1,095,525
466,295
312.240

344,427
2,841,964
1,426,448
1,642,314
1,805,856
1,680,060
1,876,756
1,525^192
1,710,602
1,086,668
1,165,129
710,277
1,068,036
440,476
253.916

-

3,823,9(7"

39,589,264

5,309,756

9,413,199

179,446
566,946
576,705
818,292
870,085
721,947
807,280
605,688
676,699
385,781
407,783
229,395
329,364
121,324
64.573

8/350,260
166,516
363,885
722,451
966,621
994,056
1,302,181
1,136,639
1,436,120
911,578
1,070,709
657,223
1,056,841
451,691
290.799

2,298,280

20,055,093

•
•

1947» try -tasca

269,240
783,278
804,632
1,143,305
1,345,299
1,328,883
1,552,637
1,355,567
1,554,652
1,017,028
1,101,510
681,138
1,036,045
450,552
247.827

4,014,022 5,709,441

try adjuated gro

401,910

6.482.684

408,156 2.092.564

127,515

1,805,886

84,884

570,393^

g. b51«3t>4

i returns w i t h adjusted gross in—
m d e r $5,000 and nontaxable returns
s returns w i t h adjusted gross in—

2,225.835 2,726,508
1,817, 680 j 634,144

8,663,085 23,891,678 9/61,916,099 39,710,845 3,706,586 2,149,454
»,413,199

o £ t S «OOP and over

i
1947,

5» — Indlv

by

2,298,280

20,055,093

4,014,022

401,910

taxable

nd tax liability

adjusted gr

408,156 2,092,364

Continued

Returns of single persons

Separate community property returns 45/
Men
Women
A djusted gross income classes 1/

Number

Adjusted
gross
income 2/

of
returns

1

z

5
4
S

6

7
8

9
10
11
12

15
14
15
16
17
18
19
20

21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
S3
54
55
56
57
58
59
60

61
62
63
64
65
66

67
68

taxable returns:
0.5 under 0.75
0.75 under 1
1 under 1.25
1.25 under 1.5
1.5 under 1.75
1.75 under 2
2 under 2.25
2.25 under 2.5
2.5 under 2.75
2.75 under 3
5 under 3.5
3.5 under 4
4 under 4.5
4.5 under 5
5 under 6
6 under 7
7 under 8
8 under 9
9 under 10
10 under 11
11 under 12
12 under 13
13 under 14
14 under 15
15 under 20
20 under 25
25 under 30
30 under 40
40 under 50
50 under 60
60 under 70
70 under 80
80 under 90
90 under 100
100 under 150
150 under 200
200 under 250
250 trader 300
300 under 400
400 under 500
500 under 750
750 under 1,000
1.000 under 1,500
1,500 under 2,000
2.000 under 3,000
3.000 under 4,000
4.000 under 5,000
5.000 and over
Total taxable returns
ontaxable returns : 33/
No adjusted gross income 5/
Under 0.5
0.5 under 0.75
0.75 under 1
1 under 1.25
1.25 trader 1.5
<
1.5 under 1.75
1.75 under 2
2 trader 2,25
2.25 trader 2.5
2.5 under 2.75
2.75 under 3
3 trader 3.5
3.5 trader 4
4 and ‘over
Total nontaxable returns
Grand total
ixable returns with adjusted gross in:ome under $5,000 and nontaxable returns
ixable returns with adjusted gross
income of $5,000 and over____________

38/5,173
3§/9,085
16,859
27,454
35,942
85,838
116,943
136,599
169,182
148,565
209,909
141,664
98,150
66,506
86,951
49,259
51,005
21,980
17,407
13,781
11,767
9,074
7,227
6,706
19,835
10,587
5,584
5,916
2,765
1,503
926
624
387
272
581
163
66
51
37
17
14
8
5
1
“
”
-

1,572,320
38/6,788
38/6.198
38/4.279
38/2.712
38/2.221
38/1.489
38/1.252
38/1,014
(46)
(46)
(46)
(46)
(46)
(46)
(46)
28.914

Amount
Tax lia—
of exemp- bility 3/
tion 21/

5,389
8,065
19,100
38,252
58,937
161,816
248,581
324,678
443,588
426,627
677,371
528,049
415,656
514,951
474,476
319,014
251,752
186,290
164,796
144,473
135,098
113,271
97,348
97,178
340,782
234,271
152,483
202,546
122,835
81,803
59,763
46,618
52,526
25,761
69,377
28,030
14,638
8,594
12,612
7,488
8,712
6,771
3,659
1,686
*

2,587
4,542
10,212
18,355
23,447
53,395
79,180
102,098
154,082
117,024
175,651
128,104
95,094
64,509
85,002
47,320
30,132
21,502
16,902
13,700
11,659
9,239
7,225
6,523
19,662
10,556
5,523
5,932
2,670
1,465
914
603
384
256
536
145
60
29
31
15
12
6
2
1
-

_

Number
of
returns

Adjusted
gross
income 2/

81
479
1,291
2,872
5,436
16,946
26,540
35,064
48,944
49,573
80,654
65,091
52,853
41,504
67,340
50,152
38,832
53,590
31,151
28,883
28,054
24,687
21,954
23,045
89,593
il,420
52,251
77,107
51,654
56,772
28,511
22,668
16,487
13,155
37,432
16,152
8,209
5,013
7,131
4,292
4,259
3,794
2,079
1,054

12,755
34,301
71,291
66,314
77,360
116,964
144,698
159,278
175,705
138,564
176,278
107,600
64,800
42,552
59,054
33,977
21,548
15,986
12,741
10,005
8,353
6,664
5,481
4,855
14,433
7,516
5,976
4,156
1,922
981
652
379
225
166
339
90
44
11
27
11
5
5
1

8,442
30,470
80,608
118,565
126,046
219,423
307,862
877,954
460,173
597,664
567,480
401,071
274,769
201,842
322,381
220,165
161,783
135,948
121,291
104,902
95,950
85,272
75,800
70,280
247,662
166,678
108,648
142,213
85,287
53,531
41,972
28,290
19,000
15,734
40,014
15,499
9,807
2,970
9,181
4,747
3,203
4,252
1,095

-

-

-

-

-

-

|

-

.

7.093.709 1.506.034 1.325.829 1.622.063
8/27,763
1,764
2,496

5,901
3,804
3,410
2,712
2,451
2,140
2,0852,210
2,034
1,746
1,756
1,903
(46)
(46)
(46)
(46)
(46)
(46)
(46)
(46)
(46)
(46)
(46)
(46)
(46) ... (46)
47/3.817
30,051

-

Z,S66,

-

'-

-

-

38/6.455
38/8.407
38/4.787
38/2.293
38/2.374
Wl.009
38/1.128
(46)
(46)
(46)
(46)
(46)
(46)
(46)
(46)
28,186

-

Amount
Tax lia­
of exemp­ bility 5/
tion 21/

6,378
17,151
56,695
46,753
43,27C
66,858
84,710
101,142
121,500
95,602
126,744
78,565
54,19!
30,661
42,579
25,569
16,264
12,21!
9,847
7,701
6,591
5,245
4,348
3,777
11,049
5,844
3,082
3,191
1,488
732
492
284
183
13€
258
65
27
9
24
9
3
3
1

220
1,888

6,650
11,250
12,964
24,445
36,067
44,652
54,641
49,134
72,222
53,359
38,107
29,37d
49,967
36,463
28,714
25,61C
23,881
21,971
20,77C
18,983
17,354
17,39!
67,62C
52,213
38,175
55,105
36,312
24,454
20,033
13,760
9,784
8,241
21,944
8,763
5,597
1,844
5,247
2,606
2,027
2,358
540

612,188
691,005
657,234
639,446
629,543
667,408
675,853
654,782
555,196
487,501
657,061
345,848
186,646
110,743
105,062
52,218
29,921
21,105
14,801
11,367
8,290
7,096
5,697
5,002
15,758
7,769
4,517
4,939
2,450
1,400
839
610
393
249
651
228
99
58
46
31
32
15
8
2
3
2

Men
Amount
Adjusted
Tax lia­
gross
of exemp- bility 3/
income 2/
tion 21/

396,901
600,950
741,221
878,495
1,022,222
1,250,861
1,435,492
1,554,747
1,455,897
1,400,114
2,120,888
1,288,088
789,727
525,968
569,393
537,196
223,454
178,427
140,052
119,072
95,184
88,571
76,833
72,440
269,941
173,255
123,332
170,183
108,918
76,229
54,109
45,618
33,233
23,605
78,188
39,109
22,311
15,828
16,003
13,574
18,990
11,097
9,878
3,135
6,102
7,692

306,094
345,503
355,493
374,701
382,029
444,852
454,227
470,837
394,497
366,277
498,949
261,938
144,715
83,544
78,424
39,382
21,821
15,388
10,687
8,569
6,057
5,037
4,124
3,651
11,551
5,642
3,330
3,626
1,759
1,015
597
439
284
172
462
158
61
38
28
19
19
8
5
1
2
2

9,791
35,998
57,552
77,798
99,638
126,168
154,947
172,498
170,61!
165,851
264, 62^
169,132
107,302
74,3 ef
85,113
53,791
58,668
32,372
26,708
23,80!
20,102
19,38!
17,60!
17,11!
70,20!
52,357
41,283
63,15!
44,902
33,537
25,047
22,28!
16,61!
12,01!
41,96!
21,557
13,34!
9,76!
9,36!
7,92!
11,00!
7,191
5,93!
1,74!
4,19!
4,37!

Number
of
returns

487,112
596,26!
671,274
792,309
880,546
895,12(
748,807
567,77!
396,96!
265,982
305,72!
144,18!
82,382
46,77!
52,282
28,393

18,251)
13,05!
9,542
7,352
6,180
4,687
4,22!
3,303
11,14!
5,883
3,50!
3,95!
1,987
1,124
73!
4741
352
284
63!
233
121
6!
4£
3!
37

-

5.961.904 1.071.228 1.072.701
8/25.233
2,508
2,825
1,956
2,621
1,430
1,824
(46)
(46)
■ (46)
(46)
(46)
(46)
(46)
(46)
47/7.544

Number
of
returns

4,713
5,039
3,691
2,223
2,269
1,131
1,838
(46)
(46)
(46)
(46)
(46)
(46)
(46)
(46)
24,122

.
-

-

-

-

7.871.090
56,829
1,924,994
346,688
171,040
143,452
97,185
84,204
43,090
38,451
16,675
14,520
58/5.874
W6.404
38/2.078

38/ 1 .268
2.952.752

18.680.503 5.105.982 2.540.724 7,058.942
8/78.596
34,477
518,051 1,040,671
199,095
267,459
149,586
196,827
158,053
185,121
154,195
157,258
135,211
142,960
80,858
86,779
81,130
81,150
59,650
38,352
38,049
36,697
16,898
16,558
20,494
17,360
7,766
4,891
7.013
2.019
9/1.507.451 ¿.308.554

33,882
1.506.62!
354,613
218,664
168,731
94,40!
81,943
28,68!
21,96!
38/7.041
1(5/4.34!
38/1.528
35/1.966
(46)
38/1,139
2.525.87!

Wornm
Adjusted
Amount
Tax lia­
gross
of exemp­
bility 5/
income 2/
tion 21/

317,087
519,698
759,706
1,087,777
1,451,889
1,674,645
1,586,552
1,345,180
1,038,041
762,461
985,744
536,585
348,958
221,288
284,661
182,655
137,1«
110,552
88,497
76,943
70,939
58,490
56,993
47,918
192,025
130,627
95,843
136,116
88,422
61,301
47,552
35,464
29,890
26,879
76,777
40,103
26,607
16,871
16,528
14,273
21,908
6,827
10,200
5,104
5,055
6,266

243,556
298,134
373,205
468^947
538,829
592,953
502I999
391,387
275,001
189j103
216,600
100,743
57,359
33,124
37,563
20,17S
12,015
8,482
6, 3141
4,84!
4,0SC
3,0141
2,772
2,138
7,38!
3,80!
2,32!
2,573
1,29!
726
463
3OC
234
172
404
142
7C
3!
2!
1!
2C
4
!
2
1
3

93,022
138,187
169', 540
171^409
151^114
121,280
91^455
124,371
71,772
' 48,328
31,684
42,694
29,344
23,745
20,369
17,059
15,539
14,934
12,694
13,049
11,259
49,946
38,929
31,625
49,896
35,857
26^685
21^929
16,830
14,851
13,633
41,778
23'423
16,108
10,317
10,584
9,003
14,627
4,463
7,076
3,385
3,622
3,301

5.032

1

3.775

7,699
30,428

14,826.091 4.403.312 1.959.191
8/38,595
399,012
207,667
191,134
185,273
129,683
131,031
53,779
46,476
16,629
11,492
4,373
6,470
(46)
6.588

19, 61C
827,532
267,931
237,62!
204,371
142,60!
130,697
53,34!
43,01!
13,55!
9,703
3,64!
4,30!
(46)
2.082
9/ 1 . 352,259 1.961.14!

•
«
C
O

_
-

-

1.601.234 9/7,089.892 1.336.086 1.323.829 1.650.249 9/ 5 . 95 4 .3 6 0 1 . 095,349 1,072,701 1 0 . 823.842 9/ 20. 187.954 7,414.536 2.540.724 9 . 584.818 9/ 1 6 . 178.350 6.364.461 1.959.191
1,296,781 9/3,665,241 1,038,107
427,328 1,436,646 9/3,564,825
434,969 10, 523,206 9/ 16, 967,022 7,192,207 1,686,28! 9, 407, 10! 9/ 13, 967,870 6, 243,084 1,306,862
934,340
304,453

3,424,651

297,979

896,501

213,605

2,389,535

161,009

637,732

300,636

3,220,952

222,329

854,43!

177,712

2,210,480

121,377

652,329

1
2
3
4
5
6

7
8

9
10

11
12

13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
59
40,
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66

"I
6£T
<

ir footnotes, see pp.22 - 24) for extent to which data are estimated, see pp. 4-5.

Table 6» - Individual returns w i t h adjusted gross income for 1947; b y States and Territories*
Number
of returns, salaries and wages, dividends, interest, adjusted gross inoome, and tax liability

------------- ------- j-

Number of
returns
(taxable and
nontaxable)

States and Territories

Alabama
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
District of Columbia
Florida
Georgia
Hawaii
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Miohigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
N e w Hampshire
N e w «Jersey
N e w Mexico
New York
N o rth Carolina
N orth Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
R h ode Island
South Carolina
South Dakota
Tennessee
Texas
Utah
Ve r m o n t
Virginia
47 l W a s h i n g t o n 4 8 /
48 J W e s t Virginia
49 1 W i s c o n s i n
50 1 Wy o ming

bl

Total
QQ-tnpl?*I

p p

.raa-at *

Salaries
and
wages 1 0 /

Dividends ll/ Interest 12/

643,182
215,898
330,597
4,536,857
491,025
924,812
126,584
431,551
773,670
762,366
2 06.,054
208,128
3,871,396
1,489,451
948,755
677,835
726,498
663,422
344,861
960,602
2,040,169
2,707,237
1,113,143
293,580
1,396,876
213,085
508,212
72,909
220,524
2,061,056
154,001
6,537,319
918,643
201,465
3,213,264
625,258
616,911
4,193,136
342 ,760
454,974
213,445
795,462
2,243,691
232,765
133,032
918,801
1,018,941
611,357
1,332,645
96,535

1,229,414
411,840
539,329
9,460,970
880,076
2,176,539
300,664
1,031,923
1,430,591
1,461,922
447,956
305,583
9,075,919
3,025,664
1,349,045
1,041,478
1,314,648
1,249,311
617,571
2,172,646
4,447,238
6,092,353
1,946,591
487,121
2,642,431
363,173
685,861
177,477
408,729
5,075,812
250,980
15,883,792
1,669,770
215,110
7,368,102
1,034,076
1,203,998
9,274,851
746,960
846,264
222,729
1,470,235
3,975,202
464,623
232,392
1,854,899
2,098,003
1,322,015
2,557,691
190,389

5 4 ,8 0 9 ,7 4 0

{ 1 1 4 ,7 3 1 ,9 5 6 I
Im-tsL are. es/tij

22,069
9,000
11,587
386,029
32,801
128,666
35,490
37,914
88,922
54,181
14,042
5,721
323,855
65,996
36,907
24,616
45,350
37,537
21,249
83,610
210,596
160,661
63,016
8,685
120,619
9,846
23,004
9,831
17,765
167,165
5,552
842,490
62,677
4,066
248,239
24,013
25,491
345,630
35,971
17,357
5,616
41,898
117,012
10,839
8,501
63,277
47,846
29,543
83,651
5,054
4 ,2 8 1 ,4 5 3

7,02S
4,58C
4,078
131,268
11,756
22,368
3,438
13,466
25,41C
8,092
1,983
2,808
68,715
18,510
15,833
9,824
10,550
9,132
6,318
24,306
49,213
44,461
20,978
4,005
• 27,682
4,963
6,393
3,311
5,917
45,670
2,100
208,212
6,928
2,533
54,099
9,028
12,038
72,888
8,010
4,338
3,620
9,107
38,777
3,136
3,224
11,426
22,578
4,544
26,413
1,925

Adjusted
gross
income 2 /

1,523,984
564,075
758,538
13,248,199
1,285,366
2,683,657
402,502
1,276,150
1,979,727
1,834,569
585,771
486,631
11,839,400
3,970,316
2,573,459
1,829,340
1,754,365
1,662,196
746,701
2,694,318
5,324,044
7,380,259
2,936,788
673,561
3,602,099
593,867
1,348,932
229,985
506,288
6,036,480
391,122
20,015,459”
2,098,719
546,809
9,053,107
1,529,733
1,664,988
11,303,195
919,538
1,028,441
545,223
1,865,052
5,850,745
601,185
292,559
2,271,229
2,804,714
1,539,024
3,392,629
281,391

1 , 1 1 6 , 9 7 5 1 1 5 0 ,3 2 6 ,4 2 9
■A— S .

Tax
liability

Zj

147*828
59,622
72,768
1,744,077
150,660
358,789
73,909
167,712
233,665
203,838
69,937|
49,056
1,578,607
446,091
284,944
204,776
178,268
179,684
71,607
314,292
639,978
837,662.
321,326
66,656
426,254
66,6611
154,795
30,688
53,480
720,213
42,088
2,702,269
201,703
57,856
1,079,062
154,120
202,580
1,340,819
112,729
90,511
59,443
194,432
721,707
54,193
28,439
240,012
338,268
150,898
373,185
32,328

J

| 1 8 ,0 8 4 ,4 8 5

5 4 ,8 0 9 ,7 4 0
„ f o oiixioi^ m m

1 1 4 ,7 5 1 ,9 5 6

4 ,2 8 1 ,4 5 3

1 ,1 1 6 ,9 7 5

1 5 0 ,3 2 6 ,4 2 9

1 8 ,0 8 4 , 4 8 5

pp.»g!Pt Sft&j ,.jg<ogg

Taxable fiduciary returns Tor 1947, by total income classes: Number of returns, Income or loss from each of the sources couprising total income,
total income, deductions, balance income, amount distributable to beneficiaries, net income, exemption, and tax liability

(Total Income classes and money figures in thousands of doLLars)
Sales or
Deduction for Sales or
exchanges
Amount
Total
Rents and
Trade or
Partner­
exchanges of property Income Miscel­
Total
Total Balance distrib­
nuufcer Divi­
Interest royalties 52/ business 55/ ship 54/
of capital other than from
Miscel­
utable
i
i
k
laneous
income
deduc­
of
dends 50/ & /
assets 55/ capital
fiducia­
to
Interest Taxes 61/ laneous
tions 6§/
returns
assets 56/ ries 57/ income 58/ come 59/ £2/
deduc­
benefi­
Net
Net Net
Net
Net Net
Net
Net Net Net
ciaries
tions 62/
Drofit loS8 Drofit loss Drofit loss gain loss sain loss

Total income classes 49/

Under 0*5
0.5 under 0.75
0.75 under 1
1 under 1*25
1.25 under 1.5
1*5 under 1*75
1.75 under 2
2 under 2.25
2.25 under 2.5
2.5 under 2.75
2.75 under 3
3 under 3.5
3.5 under 4
4 under 4.5
4.5 under 5
5 under 6
6 under 7
7 under 8
8 under 9
9 under 10
10 under 11
11 under 12
12 under 13
13 under 14
14 under 15
15 under 20
20 under 25
25 under 30
30 under 40
40 under 50
50 under 60
60 under 70
70 under 80
80 under 90
90 under 100
100 under 150
ISO under 200
200 under 250
250 under 500
300 under 400
400 under 500
500 under 750
750 under 1,000
1,000 under 1,500
1,500 under 2,000
2,000 under 3,000
3,000 under 4,000
4,000 under 5,000
5,000 and over

7,074
8,279
7,699
6,359
5,477
4,946
4,315
3,759
3,497
3,168
2,756
4,992
4,046
3,494
3,000
4,898
3,872
3,127
2,597
2,231
1,809
1,544
1,426
1,203
1,062
5,704
2,427
1,558
1,894
1,076
647
470
284
206
155
440
188
84
73
51
53
37
19
10
6
2
1
—
2-

Total

109,997 497,187

Taxable returns with total
income under $5,000
Taxable returns with total
income of $5,000 and over
For footnotes, see pp«

817
812
1,901
1,204
2,501
1,404
2,709
1,374
2,736
1,404
3,019
1,432
5,031
1,439
2,910
1,386
3,252
1,598
1,362
3,317
3,265
1,263
6,863
2,616
6,066
2,594
6,446
2,294
6,124
2,203
11,880
5,857
11,641
3,586
10,665
3,182
10,014
3,009
9,752
2,775
9,147
2,340
8,313
2,370
8,506
2,050
7,879
1,848
7,871
1,831
33,110
6,898
27,187
5,179
22,102
4,175
34,896
5,493
25,254
3,867
19,287
2,127
16,103
1,906
11,514
1,496
9,417
1,146
7,948
839
27,998
2,811
19,531
1,785
10,032
810
10,975
1,235
1,099
10,033
7,736
717
11,809
637
8,129
894
6,691
578
9,574
145
2,467
28
1,758
23
—
—
ia«&sg.____12_

72,861

94,733

162
19
876
32
1,143
25
1,150
39
38
1,228
1,265
33
1,214
25
1,194
24
1,175
23
16
1,201
1,097
12
2,005
51
1,918
38
1,847
32
1,879
29
64
5,335
3,116
57
2,825
55
2,815
42
2,315
35
2,095
48
1,968
24
1,799
20
2,038
51
22
1,599
82
6,654
5,723
63
4,591
25
6,408
69
60
5,108
4,003
51
3,259
32
2,105
25
1,720
43
1,112
8
4,505
78
2,253
42
1,720
60
786 (55)
1,353
20
1,104
2
1,687
24
3,030
18 116
6
44
2,427
—
53
-

18
7
392
29
527
29
625
11
650
16
653
33
615
34
709
23
708
22
705
10
637
17
1,268
55
1,211
37
1,167
22
1,020
28
1,891
45
1,472
29
1,509
48
61
1,344
1,206
46
1,068
15
1,181
53
1,035
14
880
56
810
20
3,266
87
2,565
75
2,069 162
3,049
55
2,075
75
1,471
77
1,489
61
660
6
555
21
478
30
2,821
36
1,695
14
336
2
•
1,034
539
13
699
17
724 (55)
941
2
—
1,133
14
-•
116
«•

87 23
190
69
169 21
480
99
246
6
708 142
330
8
748 160
350
9
871 129
996 108
328 11
442 12 1,024 104
427
7 1,025
84
371 27 1,057 108
371 10 1,095
83
317 29 1,068
72
808
3 2,031 128
860 12 2,096 137
756 18 1,775 124
723
6 1,743 109
1,568 25 3,368 185
1,352 14 3,261 162
1,479 12 3,059 129
7 2,714
1,265
89
1,450
4 2,827 108
1,227
7 2,401
77
1,165 16 2,257
92
1,350
5 2,443
74
938 15 2,Ì31
64
1,019 18 1,785
57
4,194 27 7,912 239
4,589 18 7,377 147
3,276 16 5,340 114
5,288 50 8,473 148
3,223 16 6,910
78
2,887
1 4,356
49
1,854
7 5,212
54
1,933
2 2,976
23
1,055 (55)
3,264
17
1,958
7 2,269
11
2,118 55 11,074
55
1,027
2 5,704
24
576 16 4,545
4
_ 5,282
181
4
475
6 3,109
5
• 3,889
460
2
1,224 18 6,822
2
26
3,078
5
- 3,677 (35)
»
«
—
613 (35)
•*
5
16
1
•e - 1,667
•
«.
*
1

2
37
42
49
47
48
64
44
40
42
29
85
55
76
55
101
95
75
66
94
34
20
17
33
57
191
77
81
47
70
40
46
97
3
»
40
29
4
46
24
3
17
•
—
«

2
13
15
21
4
14
9
7
4
11
3
12
30
17
10
16
19
16
22
5
10
6
3
4
34
41
28
15
59
23
22
15
6
2
70
69
22
•
162
83
«
-

102,628 1,710 51,017 1,508 55,724 562 146,535 3,632 2,118

901

m

m
•

50
29
71
238
90
269
93
283
98
525
129
347
108
509
92
516
115
353
79
332
135
213
210
552
224
576
173
485
222
418
328
820
182
632
294
593
386
622
286
660
327
425
240
432
193
547
364
286
246
340
812
1,490
682
1,189
435
900
806
1,284
442
1,252
450
858
187
378
229
364
105
256
30
177
1,500
485
424
164
401
414
86
169
465
185
59
18
6
5
9
20
21
4
<«
3
- * (35)
(55)
-

11,962

19,993

2,024
5,175
6,712
7,122
7,514
8,020
8,063
7,958
8,286
8,573
7,912
16,165
15,147
14,805
14,203
26,812
25,176
23,421
22,014
21,147
18,906
17,755
17,825
16,226
15,412
64,053
54,238
42,634
65,385
47,956
35,502
30,280
21,505
17,434
14,755
52,875
52,462
18,535
19,788
17,074
14,663
22,885
16,056
12,000
10,083
5,058
5,376
•
13.261

4
15
52
44
49
58
61
70
66
69
49
124
116
121
117
244
202
179
184
159
152
154
144
164
151
605
660
567
647
577
343
379
210
274
168
607
513
348
154
455
54
100
157
10
(35)
125
21
9

58

447

973,583

9,687

22,547

48,009

35
89
186
227
241
254
245
254
245
260
220
451
406
402
386
695
611
550
512
497
459
408
451
411
358
1,456
1,380
992
1,442
1,055
809
732
463
573
528
1,262
641
650
250
432
245
318
294
199
16
203
124

121
144
252
311
349
417
389
416
431
419
428
844
799
774
714
1,337
1,311
1,206
1,069
1,081
870
864
792
794
800
3,277
2,553
2,076
5,167
2,630
1,638
1,671
1,167
967
868
2,662
1,350
1,662
683
1,026
494
1,159
684
554
347
122
76

54,957

23,985

19,354

715

172

1,869

5,025

137,479

995

3,901

6,808

37,136 442,229

70,745

85,275 1,275 40,111 1,134 49,142 359 129,611 1,975 1,407

730

10,093

14,970

836,106

8,694

18,649

41,204

436 10,905

373 6,585 202 16,927 1,656

Net in­
Amount Tax
come
taxable of
liabil­
to the exemp­ ity 66/
fiducia­ tion 65/
ry 64 /

1,865
4,927
6,241
6,541
6,874
7,291
7,368
7,218
7,544
7,624
7,215
14,746
13,825
13,509
12,986
24,536
23,052
21,486
20,249
19,410
17,426
16,330
16,438
14,857
14,108
58,715
49,645
38,999
60,128
43,713
32,513
27,497
19,463
15,820
13,371
48,344
29,958
15,876
18,701
15,164
13,890
21,308
14,901
11,437
9,719
4,608
3,156

117
366
617
857
1,109
1,353
1,542
1,603
1,779
2,052
1,967
4,274
4,331
4,279
4,555
8,327
8,143
7,662
7,491
7,149
6,875
6,427
6,777
5,773
5,820
24,636
20,978
16,956
27,157
19,245
15,818
12,571
9,161
7,560
5,677
23,610
17,203
7,387
10,266
8,399
7,569
11,868
8,183
4,713
8,618
2,220
1,507

1,747
4,561
5,624
5,684
5,765
5,938
5,826
5,615
5,764
5,572
5,247
10,472
9,494
9,230
8,631
16,209
14,909
13,824
12,758
12,261
10,550
9,902
9,660
9,083
8,288
34,079
28,667
22,043
32,971
24,468
16,695
15,127
10,302
8,260
7,694
24,734
12,755
8,488
8,434
6,765
6,521
9,440
,6,738
6,724
1,101
2,388
1,649

514 12.747

12.143

604

160
248
471
581
639
729
696
740
742
749
697
1,419
1,321
1,296
1,217
2,276
2,124
1,935
1,765
1,737
1,480
1,425
1,386
1,369
1,304
5,337
4,593
3,635
5,255
4,242
2,789
2,782
1,840
1,614
1,364
4,531
2,504
2,680
1,068
1,910
772
1,576
1,135
562
363
450
220

707
2,771
2,618
2,097
1,755
1,559
1,302
1,132
1,031
897
767
1,368
1,095
915
773
1,235
928
769
619
522
420
359
333
278
227
828
550
346
415
230
137
101
62
42
38
92
35
20
13
11
7
7
4
2
1
1
(35)
(35)

201
541
580
679
761
851
852
859
895
891
857
1,757
1,626
1,638
1,571
3,056
2,917
2,814
2,704
2,684
2,378
2,317
2,308
2,255
2,139
9,442
9,016
7,535
12,484
10,295
7,390
7,137
5,061
4,115
4,082
13,047
7,179
5,075
4,727
4,178
4,098
5,353
4,442
4,488
681
2,029
834

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
51
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
475 49

80,244 893,339 384,096 509,244 29,599 173,07Í 50
11,705 125,774

30,601

95,170 20,767

68,557 767,565 555,489 414,071

14,339 51

8,632 158,735 52

22

- 24»

ro
CD

-

22

-

Footnote«

1/ Adjusted gross income classes are based on the amount of
adjusted gross income (see note 2), regardless of the amount of
net income or net deficit when computed; returns with adjusted
gross deficit are designated "No adjusted gross income” and the
size of the deficit is disregarded.

g/

Adjusted gross income means gross income
allow­
able trade and business deductions, expenses of travel and
lodging in connection with employment, reimbursed expenses in
connection with employment, deductions attributable to rents and
royalties, certain deductions of life tenants and income bene­
ficiaries of property held in trust, and allowable losses from
sales or exchanges of property. Should these allowable deduc­
tions exceed the gross income, there is an adjusted gross deficit.

¡J Tax liability after deducting tax credits relating to
income tax paid at source on interest from tax-free covenant
bonds and to income tax paid to a foreign country or possession
of the United States. Such credits are reported only on returns
with itemized deductions.

¿J Includes nontaxable returns with adjusted gross

income

exceeding the class limit.
_§/ Returns with no adjusted gross income are returns show­
ing adjusted gross deficit (see note 2); that is, returns on
which the deductions allowable for the computation of adjusted
gross income equal or exceed the gross income.
6/ Less than 0.005 percent.

TjNot computed.
8/ Adjusted gross deficit.

share of net short- and long-term capital gain and loss to be
taken into account from partnerships and common trust funds.
18/ Net gain or loss from sales or exchanges of property
other than capital assets is that from Idle sales of (1)
property used in trade or business of a character which is
subject to the allowance for depreciation, (2) obligations of
the United States or any of its possessions, a State or
Territory or any political subdivision thereof, or the District
of Columbia, issued on or after March 1, 1941, on a discount
basis and payable without interest at a fixed maturity date not
exceeding 1 year from date of issue, and (5) real property used
in trade or business.
19/ Income from estates and trusts excludes partially taxexempt interest on Government obligations and partially taxexempt dividends on share accounts in Federal savings and loan
associations. (In computing the distributable income of an
estate or trust, the net operating loss deduction is allowed.)
20/ Miscellaneous income includes alimony received,
prizes, rewards, sweepstakes winnings, gambling profits, re­
coveries of bad debts or insurance received as reimbursement
for medical expenses if deduction for either was taken in a
prior year. For returns with standard deduction, there is in­
cluded $45,887,000 of wages not subject to withholding, divi­
dends, and interest, not exceeding in total $100 per return,
reported on 1,099,440 returns, Form W-2.
21/ Exemption, for purposes of both the normal tax and the
surtax, is $500 for the taxpayer, $500 for the taxpayer's spouse
if not dependent upon another person, and $500 for each closely
related dependent (specified by law) who had less than $500 in­
come and who received from the taxpayer more them 1/2 his
support for the year.

9/ Adjusted gross income less adjusted gross deficit.
10/ Salaries and wages include annuities, pensions, and
retirement pay reported in the schedule for salaries; but
exclude wages not exceeding $100 per return from which no tax was
withheld, reported as other income on Fbra W-2 (see note 20).
11/ Dividends, foreign and domestic, include partially taxexempt dividends on share accounts in Federal savings and loan
associations, but exclude dividends not exceeding $100 per re­
turn reported as other income on Bbrm 17-2 (see note 20) and all
dividends received through partnerships and fiduciaries,
12/ Interest received includes interest on notes, mortgages,
bank deposits, corporation bonds before amortization of bond
premium, and taxable and partially tax-exempt interest on Govern­
ment obligations before amortization of bond premium; also in­
cludes, when received through partnerships and fiduciaries,
partially tax-exempt interest on Government obligations and
partially tax-exempt dividends on share accounts in Federal sav­
ings and loan associations. Excludes interest, not exceeding
$100 per return, reported as other income on Form W-2 (see note 20).
15/ Income from annuities and pensions is only the taxable ’
portion of amounts received during the year. Amounts received
to the extent of 3 percent of the total cost of the annuity are
reported as income for each taxable year, until the aggregate of
amounts received and excluded from gross income in this and prior
years equals the total cost. Thereafter, entire amounts received
are taxable and must be included in adjusted gross income.
Annuities, pensions, and retirement pay upon which tax is with­
held may be reported in salaries and wages.
14/ Net profit from rents and royalties is the excess of
gross rents received over deductions for depreciation, repairs,
interest, taxes, and other expenses attributable to rent in­
come; and the excess of gross royalties over depletion and other
royalty expenses. Conversely, net loss from these sources is
the excess of the respective expenses over gross income received.
15/ Net profit from business is the excess of gross receipts
from business over deductions for business expenses and the net
operating loss deduction due to the unabsorbed net operating
loss from business, partnership, and common trust funds for the
2 preceding years. Conversely, net loss from business is the
excess of business expenses and net operating loss deduction
over total receipts from business.
16/ Partnership net profit or loss excludes partially taxexempt interest on Government obligations, partially tax-exempt
dividends on share accounts in Federal savings and loan as­
sociations, and net gain or loss from sales of capital assets.
In computing partnership profit or loss, charitable contribu­
tions are not deductible nor is the net operating loss deduc­
tion allowed.
17/ Net gain or loss from sales or exchanges of capital
assets is the net gain or the allowable loss used in computing
adjusted gross income. Each is the result of combining net
short- and long-term capital gain and loss and any capital
loss carry-over from the years 1942-1946, inclusive, not pre­
viously deducted; however, the allowable deduction for the loss
is limited to the amount of such loss, or to the net income
(adjusted gross income if taxed under Supplement T) computed
without regard to gains and losses from sales of capital assets,
or to $1,000, whichever is smallest.
Sales of capital assets include worthless stock, worthless
bonds if they are capital assets, nonbusiness bad debts, certain
distributions from employees' trust plans, and each participant's

22/ Payments on 1947 declaration of estimated tax, include
the credit for overpayment of prior year tax as well as the
aggregate payments made on the declaration, Form 1040-ES. The
frequency of returns with such payments includes returns show­
ing credit only, cash payments only, and those shewing both.
25/ Returns with standard deduction are optional returns,
Form W-2, and short-form returns, Form 1040, with adjusted gross
income, on both of which the tax is determined from the tax
table; and long-form returns, Form 1040, with adjusted gross in­
come of $5,000 or more on which the $500 standard deduction
is used.
24/ Returns with itemized deductions are long-form returns,
Form 1040, on which nonbusiness deductions are itemized; longform returns, Form 1040, with no deductions filed by spouses of
taxpayers who itemized deductions (such spouses are denied the
standard deduction); and returns, Form 1040, with no adjusted
gross income whether or. not deductions are itemized.
25/ Contributions, reported on returns with itemized de­
ductions, include each partner's share of charitable contribu­
tions of partnerships, but cannot exceed 15 percent of the ad­
justed gross income.
26/ Interest, reported on returns with itemized deductions,
is that paid on personal debts, bank loans, or mortgages, but
excludes interest on business debts reported in schedules for
rents and business, and interest on loans to buy tax-exempt se­
curities, single-premium life insurance, or endowment contracts.
27/ Taxes paid, reported on returns with itemized deduc­
tions, include personal property taxes, State income taxes,
certain retail sales taxes, and real estate taxes except those
levied for improvements which tend to increase the value of
property. This deduction excludes Federal income taxes;
estate, inheritance, legacy, succession, or gift taxes; taxes
on shares in a corporation which are paid by the corporation
without reimbursement from the taxpayer; taxes deducted in the
schedules for rent and business; income taxes paid to a
foreign country or possession of the United States if any por­
tion thereof is claimed as tax credit; and Federal social
security and employment taxes paid by or for the employee.
28/ Losses resulting from fire, storm, shipwreck, or other
casualty, or theft, reported on returns with itemized deductions,
are the actual nonbusiness losses sustained, that is, the value
of such property less salvage value and insurance or other re­
imbursement received.
29/ Medical and dental expenses, reported on returns with
itemized deductions, paid for the care of the taxpayer, his
spouse, or dependents, not compensated by insurance or other­
wise, which exceed 5 percent of the adjusted gross income. The
deduction is limited to $1,250 if one exemption is claimed, or
to $2,500 if two or more exemptions are claimed.
50/ Miscellaneous deductions, reported on returns with
itemized deductions, include alimony payments, expenses in­
curred in the production or collection of taxable income or in
the management of property held for the production of taxable
income, amortizable bond premium, special deduction for the
blind, the taxpayer's share of interest and real estate taxes
paid by a cooperative apartment corporation, and gambling
losses not exceeding gambling gains reported in income.
51/ Net income, reported on returns with itemized deductions,
is the excess of adjusted gross income over itemized deductions.

- 23 -

Footnotes --'Continued

32/ Net deficit reported on nontaxable return«, Fora 1040,
consists of adjusted gross deficit on short-form returns and
the net deficit on long-form returns resulting from the com­
bination of adjusted gross deficit and itemised deductions or
from the excess of itemized deductions over adjusted gross in­
come. There is a net deficit oa 348,375 returns of which
299,072 show adjusted gross deficit and 49,303 show adjusted
gross income of various amounts and itemized deductions of
larger amounts.
¿3/ Nontaxable returns are those with no adjusted gross
income and returns with adjusted gross income which, when reduced by deductions, standard or itemized, and exemptions, re­
sults in no tax liability. The 1,111,071 nontaxable returns
with adjusted gross income and with itemized deductions in­
clude 49,303 returns with net deficit.
34/ Number of returns associated with this item is sub­
ject to sampling variation of more than 100 percent. Such
items are not shown separately since they are considered too
unreliable for general use; however, they are included in
totals. For description of sample see pages 4-5.
¿¡¡,/ less than 9500.
36/ Frequency of returns excludes the number of return«.
Fora W-2, with this source of income reported as other income
(see note 20).

Jj7/

Frequency of returns includes 1,099,440 returns,
Form W-2, showing other income consisting of wages not sub­
ject to withholding, dividends, and interest not exceeding
in total $100 per return.

28/Number of returns

is subject to maximum sampling
variation of 30 to 100 percent, depending on the number in
the cell. For description of sample, see pages 4-5.
39/ Number of returns is subject to sampling variation
of more than 100 percent and is considered too unreliable for
general use; therefore, the number is not shown separately,
but is included in the totals. For description of samole,
see pages 4-5.
42/ Average tax is based on the tax liability after de­
ducting the two tax credits relating to income tax paid at
source on interest from tax-free covenant bonds and to income
tax paid to a foreign country or possession of the United
States. Such credits are allowed only on returns with
itemized deductions.
41/ Returns with normal tax and surtax consist of (1)
the optional returns, Form W-2, and short-form returns, Form
1040, wherein the optional tax is paid in lieu of normal tax
and surtax, and (2) long-form returns, Form 1040, on which
the regular normal tax and surtax are reported; that is, all
taxable long-form returns except those on which the alterna­
tive tax is imposed (see note 42).
42/ Returns with alternative tax are long—form returns,
Form 1040, wherein (1) the net income includes an excess of
net long-term capital gain over net short-term capital loss,
and (2 ) the alternative tax is less than the regular normal
tax and surtax computed on net income which includes net gain
from sales of capital assets. Alternative tax (not effective
on returns with surtax net income under $18,000) is the sum
* partial tax computed at the regular normal tax and
surtax rates on net income reduced for this purpose by the
excess of net long-term capital gain over net short-term
capital loss, and (2) fifty percent of such excess.

-47/ Adjusted gross deficit lese adjusted gross income.
'
1
1

48/ Includes Alaska.
49/ Total income classes are based on the amount of total
income tabulated for taxable fiduciary returns (see note 59).
50/ Dividends, foreign and domestic, exclude nartiallv
tax-exempt dividends on share accounts in Federal savings and
loan associations and all dividends received through partner­
ships and fiduciaries.
51/ Interest on bank deposits, notes, mortgages, corpora­
tion bonds, taxable and partially tax-exempt interest om
Government obligations, and partially tax-exempt dividends
on share accounts in Federal savings and loan associations.
Also includes such Government interest and partially taxexempt dividends on share accounts received through partner­
ships and fiduciaries.
¿2/ Net profit from rents and royalties is the exceae of gross
rents received over deductions for depreciation, repairs,
interest, taxes, and other expenses attributable to rent in­
come; and the excess of gross royalties over depletion and
other royalty expenses. Conversely, net loss from these
sourcee is the excess of the respective expenses over gross
income received.

St/

Trade or business profit or loss is the current year
profit or lose. (Net operating lose deduction is reported in
miscellaneous deductions.)
¿4/ Partnership net profit or loss excludes taxable arei
partially tax-exempt interest on Government obligations,
partially tax-exempt dividends on share accounts in Federal
savings and loan associations, and net gain or loss from
sales of capital assets. In computing partnership profit or
loss, charitable contributions are not deductible nor is the
net operating loss deduction allowed.
j>§/ Net gain or loss from sales or exchanges of capital
assets is the net gain or the allowable loss used in comput­
ing the net income taxable to the fiduciary. Each is the
result of combining net short- and long-term capital gain or
loss and any capital loss carry-over from the years 1942-1946,
inclusive, net previously deducted. Deduction for the loss,
however, is limited to the amount of such loss or to the net
income computed without regard to gains and losses from sales
of capital assets, or to $1,000, whichever is smallest.
Sales of capital assets include worthless stock, worth­
less bonds if they are capital assets, nonbusirmss bad debts,
certain distributions from employee's trust plans, and each
participant's share of net short— and long-term capital gain
and loss to be taken into account from partnerships and
common trust funds.
L
Net gain or 1088 from sales or exchanges of property
oiügr than capital assets is that from the sales of (1)
property used in trade or business of a character which is
to the allowance for depreciation, (2) obligations of
the United States or any of its possessions, a State or
Territory or any political subdivision thereof, or the
District of Columbia, issued on or after March 1, 1941. on
a discount basis and payable without interest at a fixed
maturity date not exceeding 1 year from date of issue, and (3)
real property used in trade or business*
57/ income from other fiduciaries excludes taxable and
partially tax-exempt interest on Government obligations and
partially tax-exempt dividends on share accounts in Federal
savings and loan associations.

w 45/ Joint returns of husbands and wives include all combined returns of husbands and wives, Form W-2, whether comminity
r nonconaunity income is reported, even though the tax is de­
termined on the basis of the separate incomes.

Miscellaneous incoas includes taxable incoae from
sources other than those specified on the return fbnu

« 44/ Separate returns of husbands and wives
com­
bined returns of husbands and wives, Form W-2, even though
imL 1 iS determined on the basis of separate incomes. An
unequal number of returns for men and for women is the reof insufficient data to identify such returns, and the
use of samples as a basis of estimating data.

Total income is the amount resulting from the com­
bination of profit or loss from rents and royalties, from
trade or business, from partnerships, from sales or exchanges ■
of property, together with income from dividends, interest,
other fiduciaries, and from miscellaneous incoas. (Total
income is an approximation of the adjusted gross income
tabulated for individual returns.)

4 ^ Separate coamunity property returns of husbands and
W-9 *
conbined returns of husbands and wives, Form
lan f!T:ng
Income divided in accordance with State
con*
^ dsterained on 'the bests of divided community inthe
nuai>er of returns for men and for women is
the use nf °f i"suff4cient data to identify such returns, and
use of samples as a basis of estimating data.

60/ Interest includes that paid on debts, mortgages, and
bank loans; it does not include interest on business in­
debtedness reported in the schedules for rent or business
income, nor interest on indebtedness incurred to buy taxexempt securities, single-premium life insurance or endowment
contracts.

of mo^/+?IiBb? L 0f returns i8
Jeot to sampling variation
«ociatL^w100 Per06nt‘ The nm4>er of returns and data asare com i S « / ? 1* returM are
3hOTn» separately since they
«•e iLiurt!^ ?
unrell8ble for general use; however, they
pagea
**** totals. For description of sample, see

Taxes paid include State income taxes, certain re­
tail sales taxes, and real estate taxes except those levied
for improvements which tend to increase the value of
property. This deduction does not include Federal income
tax, estate, inheritance, legacy, succession, or gift taxes,
nor taxes imposed upon shares in a corporation which are paid
by the corporation without reimbursement from the taxpayer;

k

°oamnlty

88./

88/

§1/

24 -

E oo tn o te s - Continued

ta x e s deducted i n the sch ed u le s f o r b u sin e ss and r e n t incom e,
nor income ta x e s p aid to a fo r e ig n c ou n try or p o s se ss io n o f th e
U n ited S t a t e s i f any p o r tio n th e r e o f i s claim ed a s a t a x c r e d i t .

64/ N et income ta x a b le t o th e f id u c i a r y i s th e n e t in ­
come a f t e r s u b tr a c tin g from the b a la n ce income th e amount
d is t r ib u t a b le to b e n e f i c i a r i e s .

62/ M isc e lla n e o u s d ed u ctio n s in c lu d e th e n e t o p e ra tin g
lo s s d e d u c tio h , l o s s e s r e s u l t i n g from f i r e , storm , sh ipw reck,
or o th e r c a s u a lt y o r from t h e f t , n o t compensated b y in su ra n ce
o r o th e r w ise , and o th e r a u th o r iz e d d ed u ction s f o r w hich no
se p ara te p r o v is io n i s made on th e r e tu r n fo rm .

65/ Exem ption i s $500 f o r each e s t a t e and $100 f o r
each t r u s t , i n th e form o f a c r e d i t a g a i n s t n e t income fo r
purposes o f both th e normal ta x and s u r ta x .

65/ B a la n ce income i s th e e x c e s s o f t o t a l income over
t o t a l d e d u c tio n s; th a t i s , income b e fo r e the amount d i s t r i b u t ­
a b le to b e n e f i c i a r i e s i s d ed u cte d .

66/ Tax l i a b i l i t y a f t e r c r e d i t s r e l a t i n g to income
ta x p a id a t sou rce on i n t e r e s t from t a x - f r e e covenant bonds
and t o income ta x p aid to a fo r e ig n c o u n tr y , or p o sse ssio n
o f th e U n ited S t a t e s .

T rea su ry - In t e r n a l Revenue, W ashington, D. C

50

We are engaged in a struggle to
free the world from fear and we
will go forward staunchly with our
effort to buiIdftogether the other
freedom, freedom from want.

I

belive the spirit of Point Four, which
is basically that of mutual
cooperation, will help us substantial!
in that effort.

How much it will

help remains for each of us to
dec ide.

preservation of their freedoms.
At the same time, they are
determined to work together for
economic improvement in every
area.
The Four Freedoms which we
desire as foundations for our world
I ¿jfc .

Uki? ,/■ [ i f

f

j

\'

as *

have been widely stated -- freedom
of expression, freedom of worship,
freedom from want* ana freedom
from fear.

We have preserved in

large areas the first two freedoms.

-

4

a -

the first instance to produce
for defense can later be converted
to production for other purposes.
There have been many times in
history when swords have been
beaten into plowshares.

I have

faith that such times will come again.
I have faith that we shall
overcome every menace and every
threat.

The free democracies of

the world have joined hands for
their mutual defense and for the

.J

prime duty of the American States
in the present emergency.

This may

necessitate the postponement of some
development projects which might
otherwise have been carried out.
However, the very measures
IjjpM I§|§1§||

which are being ta*@n to stimulate
production of supplies essential
for the defense effort will, in
many instances, contribute to
permanent economic improvement.
Industrial expansion created in

to the econo®!c development
programs of the various countries.
This Is a matter, however, of too
gravtjiaiportance to be left
untouched in this discussion,

it

is particularly fitting that
trI but© shouId be paid to the
wonderful spirit of cooperation
"Iby-.,;""'

jg f§

||S p

'V • ’

|

If! p

|

'

5.

among the American Republics which
was evidenced at the recent
foreign Ministers meeting in'
Washington.

The meeting resulted

in agreement upon the principles

foreign capitai iC
jM

i« cL

such

it cIear

gn capiti
li is t truism
it

rou tua I

i fc

II

1I to reroìna

—

4 3

*

The bankers* advice to investors*
as we ai i know, can have a great
influence upon the most productive
use of available domestic capital.
One of the strongest inducements
that foreign capital can have
for entering a country is a
demonstration of the faith of
that country’s citizens in its
future.

An evidence o f this

faith is the willingness o f ’
domestic capital to bear a share

<

of credit for non-essential
spending as pert of our effort to
prevent inflation,

in other li

-w

§

wf have requested the coopérâtion
of bankers to expand credit.

In

countries where investment funds
are not too plentiful, bankers can

. yen to d i r e c t the funos avalladle
o

| ! S B

into »ore/tonstructIve enterprises
and projects that contribute to
the permanent and prudent
development of natural resources.

attitudes produce new emphasis.

The

new attitude and emphasis that
Point Four seeks to advance
^

%,*

■

rff

y

>

M

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*S

y

^

}

ral

.-

■; ^ i ^

%

places a heavy responsibility upon
the banking fratern ity.
Commercial bankers have>a greet
service to perform for their clients
and for their communities.

In times

of stress, this service becomes of
utmost importance.

For example', in

the United States we have sought the
help of commercial bankers in
voluntary programs to curb the use

40
■

Informed cooperation of domestic

capital, therefore, is essential if
Point Four is to be translated into
tangible programs and projects.

On

this point, gentlemen, bankers can
do a great deal in each country to
fljll

v, |

¡§j

bring about the orderly and permanent

I

economic development envisaged in this
concept.
function.

Of course, this is no new
It is one that bankers have

long been performing.

However, fam iIi

functions gain new importance as new

smoothly a mi without interrupt ion.
Any enterprise Is

lively to

succeed if it engenders fa.Iih in'
the community where it has its home.
Such a partnership of capital also
tends to produce a greater unity of
point of view and purpose.

This is

of particular value in promoting
that regard for the public welfare
which Point Four me ices a fundamental
requIrement.

>

fCP
.
T

C T i>

38

improvement of standards of living.
V

This partnership will tsenefit both
the investors immediately concerned
and the people as a whole.
I stress the word partnership
because it is at the heart of the
Point Four concept.

The partnership

principle in carrying out our specific
projects is important for several
reasons.

When foreign and domestic
4

'.'K:

capital join hands in an enterprise,
that enterprise ?s apt to function

gii
;

« fuer’el y

f Fresi

gingili

ist in¡
advance
# r #

irit of Foin

f projects to be
s i

-ì5f

red its i

ù

ava liable in
jtfUUK

Fo

loans will
xtensi

of rail

©ratio

and trans«Isi ion of electricity,
improvement of t e leeommunicstIon —
gli of which are faciliti s ba sic to
sound economic progress.

Also in th
83

f§

n

3M

and thermo electric power plants
the expansion by MexIIght of Its
generatIng

fa

transmission and

distributing facilities, and also
will be of use to a consortium of
your commercial banxs in financing
a variety of other projects.
The United States Export-Import
Sitfii has loaned, or earmarxed for
projects in Mexico, credits of more
m

than $200 million during the tenure

operation of the InternationaI Ban«
for Reconstruct Ion and Development,
and of the Export-Import Banx, an
agency of the United States Government]
The InternationaI Banx assists
in maxing available capital resources
and thus provides an important basis
for further internationaI economic
development. Loans from this agency,
for example, have assisted your
Federal Electricity Commission's
program for construction of hydro

&S3

33
to promote the movement of capita!
Into the underdevtIoped countries
Egg

even before the clear enunciation of

holnt Four as part of United States
policy.

These agencies «ere charged
M p -i,

with the duty of taxing Into
consideration,

In maxing loans, not
.

only the protection of the Interest
i

of the investor but also that of the
public welfare of the country In
which the investment was to be made.
You are «eli aware of the

||
32

-

the early development of the
national resources of my own country.
For »any decades, the United States
imported capital.

At that time, my

country was one of the most strixing
examples of an underdeveloped area.
If It hid not been for the Investment
of foreign capital, the United States
of America would never have made such
rapid progress.
Against this bacxground of
experience, agencies had been created

0£i

crops.

There roust be supplies of

power and energy.

And all of these

necessities require investment funds.
Therefore, as part of Point Four]
we are seeking to encourage the flow
of capital into underdeveI oped
countries.
Let roe remind you that those who
know the history of the United States
reali ze fully how vital were tbos e
investments from abroad which aided

•

30

**

the important rote that mixed
commissions can perform.
have learned, too, that in
a growing economy, it is tremendously
Important to possess s k III and the
Knowledge of «ays of meeting

industrial problems.

The sk !Iful

worKmsn will need tools and materials.
The expanding industries cannot
develop without physical equipment.
Agriculture must have new machines
to till

so iI and to harvest the

doing highly successful «or« in the
fields of agriculture, health and
sanitation, education, and vocational
tra ining.
You «ill recall that during
ftorld Aar II a Mexican-American
Development Commission, in addition
to other accompIishments, mad©
detailed plans for a series of
projects including irrigation, power,
chemicals, steel and various
manufactures,

it have learned well

Hemisphere outside of Mexico and the
United States Is a Iso very long

/

remains to be done. PThe distribution
of technical Knowledge, the improve®®«
of the s k ills of worKers and training
in new methods tête© time.

We Know

that retooling a factory to enable
the machines to produce better goods
cannot be done overnight.

This is

equally true of educating men and
women.

Yet when the retooling or

educating is accomplished* the results

»
* /

(

t ii ^

¿6

#

\y^p m HBbKPi$,‘/

1•?'*

/'

I ^g»df§9B|^^HH&

Administrstion and your own social
v'y/^;

■,■

,j\

' m ' Vi& ' 1

m

m

':■■

.;;■;

:

: ,',;''' j '''; V ’ r v ’ ’ "•'■■■./'

welfare and health officials,

:/■'■•■••

■'’ ■■^-.?v:

*

i f

are ail well aware of the advances
of Mexican agriculture and the
development of new strains of corn
and wheat by the joint effort of the
United States and Mexican scientists
at Chap ingo.

These are oniy a few

examples of the many fields In
which together we are expanding our
s k ills.

Let me add that the list

of simi isr accompIishments in this

I

Minerals has been in continuing
contact with our own Bureau of
Mines.

The United States Geological

Survey, in cooperation with your own
people, has continued the wort« begun
in 1940 of investigating metallic
and non-metalJic mineral resources,
as a possible foundation for
further expansion of Mexico’s
justly famous mining industry.
There has been further cooperation
between our Social ¿Security

organizations as flit Institute of
Inter-American Affairs* the
Economic Cooperation Administration,
the United Nations, and various
governmental agencies and private
foundations, the pace of the exchange
of technical gttills has increased
substantially.
Your own experts have been in
touch with ours at many points.
Your National Institute for the
Investigation and Recovery of

Literally hundreds of experts
from many countries are now fit the
United States and.many United States
experts are at work on problems in
other lands.

By no means, however,

can all of these experts be said to
be functioning specifically under the
auspices of Point Four.

Nevertheless

the Point four program has turned
attention of many agencies and
organizations to the usefulness of
HP$

such visits.

Through such

\

Those were his words.

And now,

this cooperative endeavor is well
under-wsy.
Shi:,I is happening, of course,
is not wholly new.

There always

have been visits of experts and
)

exchange of technical service between
one country and mother.

But the

clear recognition of the value of
such a commerce in ideas and the
definite declaration of its purpose
has given new impetus to the process.

In spea* ing of this significant
advance in internai Iins I cooperative
thin* ing» let tst reca 11 a paragraph
■,s

I |i | |

W&

' I

| ’ vl

\

»| ’

| - |

I

j

i\

in the speech that I heard your own
President, Or. Higuel Aleroen* deliver
IlfRI * SU fÉ l I ©til
w

i *1

] |

| P ? 1 I§ v

BIIp

on the occasion of his. inauguration
in 1946.

He spans of one of the

roost iroportant aspects of what has
now beco®© the Point Four prograro.
At|that tin© he saldi
"The industrial development
of our nation requires that certain

'it:

il

17
of the United States In the Act
for Internet Ione I Development.
Perhaps seldom In history has a
principle fraught with so much
meaning for the individual welfare
of men been set forth in so few
WM'
■f '/’/
'/AIf
■
•’■A’
' " . : : .Hi'
■1
■p'r,■
/v' ■!■::-‘i'.v•-v
words. They are these:
o'

>»*, „

"The peoples of the United
States and other nations have a
Common interest in the freedom
and in the economic andisocial

.

'

i,'.

v

331
-

16

-

tie can trace *ii?ny of the principles

no* operating in the United Nations
to. laboratory experiments
/ performed in our Hemisphere over
thelyears.
These advances ®r® continuing..
President Truman*s Point Four
Program is »ell Known to you.

The

principle of Point Four is
expressed in a single paragraoh.
tspll

as enunciated by President Truman
'll ill

i | ¡¡¡§1

Ip ll

ana ss declared by the Congress

Hemisphere can be proud that this
concept of internallontI cooperation
Sfl\f'/t || | ’ ; SiSftiilliS |U|| | |f| f § I |1|1|
germinated *lth us. The peoples
and the governments of the Americas
long ago developed the interchange
of thought and tact ion, of mutual
trust end fair dealing that has
come to be Kno‘
*n as the Pol icy-of
the Good Neighbor,

ie have had

a s te a d y succession of advances in

cooperation and understanding.

« íib#
g

W

difficulties of achieving such
records.

1 want to congratuiate my

good friend and your able Secretary
fVp| ||||

V ‘ J§||§f Up

1 I fjS f 1\ *

jbf* ? '

\ '

I »^

^ ‘irv 4,. ^ kH

I ’1

of Finance, Ramon Bet eta *. on the fine
progress his country has made.
Truly, these years of threat
and challenge have proven also to
be years of real progress.
One of the most significant
and dramatic signs of the progress
Sjllflf«¿b'v,§||||||¡§IfII%

we have made is the now practical
concept of the coooeration of

basis for stability m
v i

exchange value-of

urreocy.

Your government has achieved not
on 1y 'ÌA b a Iatice d budget
but a.
w
é*'Pitti surpius in Iis fi jsìca
Mf*?*1P|ff
1f #j
ef
9|
§1
1.v.i

accoiif!ts our tn| the pa st two yea
|ip||i
H!
Isen able
11 h<^till u
Ì U,t the .-%$csyBe t im
to &l10-ate |i# if¿in cif ftin r i y 1«>50 mi
'
MiliIVir
y v 1 *i

in inonet;ary res erv«f^e«t3o»5

June,i 11<I’S .

Youi have |OOJ

be proua of ihos;
?%<&# f
**%irear os.

§ns¿a

I I ìM

ce
asoi

I am

position to appreciate the

ifgp

s
net land constantly Into agricultural
use.

New fanning techniques and

the » or H of agronomists are improving
vk-L

1 RyyPE. ' '¿Jf % *.4 ■(v-i g

^/ f \

^

'" }

;

rt

the crops of cotton and an Iit and
give promise of greatly expanding
the production of wheat.

Similarly

the yields of vegetables are
increasing, both due to greater
numbers of arable acres and to
productivity per acre.

In notable

cooperation with our own Government,

diversification o f production of

You nave made great strides
in industria Iiis11 on.

Your iron

M M H |

any in Latin Amer ica.

|

and steel industry, since itif,
has more' than tripled its
production.
v *7

*x. 1

Advances have Seen
Sgll ïJ||

made in metal fabrication, cement,
glass and tile production, rubber
fabrication and, very importantly,
11* chemical ana fertilizer
inoustrI®s.

irrigation is bringing

|

achieved much and made great progress
during the past decade.

We have

come through an historic and
trying test with stronger and closer
economic and political and spiritual
ties than ever before..

Our

production and exchange of goods and
services have increased remarKabiy.
Indeed the Economic Commission for
Latin America reported that your
’

' . I •i | | | |

v,

p! p p|

Mil !jp| I

country, by 1948 had achieved the
greatest increase in volume and
1

t none-the- le
n ;>d r &¿i sort t or nf1®a % Hq p6«

have repelled the |r»f® threats of
¡¡pS

the d i c t a t o r s h i p s ,

UnfortunateSy»

slmi I*ir anti perhaps greater
t»'-resit still

in.

Yet let no

one doubt that

hove the courage

nd the stamina and the Iffi ity
to meet them.
D e s p i t e every s t r e s s put upot
u s.

our tt© c o u n t r i e s ,

t h i s e n t i r e hemisphere,

as

Indeed

have

|:

i

l

Such warm, friendly relations
have made the anticipation of this
present visit most happy for me, f

with you and to exchange thoughts
our mutual economic
emen,
that has seen

wars that

BYI

Truman at the time of the inauguration
of President Aleman
•

'i/..-v;

j' "\ .!

. y,'.

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•

^

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\

. -'v-v 1• „

A

- ■■

’

11 is »1 tfi great pride thst I
count among my close associâtes in
Washington, many able représentâtives
of the

lean people, including

your représentatives in the
InternationaI Ban« and the
internationaI Fund, and your
Ambassadors
It was therefore with exceptional
pleasure that I received and accepted
the cordial

invitation of

I was here in your country
attending a joint session of Mexican
H||g'

I IfSif

■

* 1*

"

m -

and United States banners as a private
banner from St. Louis when we
received word of the death of
President hoosevelt and I was called
to Washington by President Truman to
become a part of his Administration.
My friends here showed warm sympathy
||||!

H

| W5

¡Cji

and understandtng of the grave news,
a much happier occasion, I was
privileged to be the guest of your
government, representing President

To meet again with the members
.

\

of the banking fraternity of Mexico
brings back «any pleasing memories.
I recall the warmth of your hospital!
and the lasting friendships that
nave grown out of my other visits
to your country, first as a private
citizen

a c .n*er -- and later as

a represent..-, live- of my Government. £|
The wholehearteo kindliness of your
receptions was always sincere, and

f

I cnerish tne recollection of them.

vj

/

b~V\J

183
TREASURY DEPARTMENT
Washington

The following address by Secretary of the Treasury
John W« Snyder before the 17th Convention of the
Mexican Bankers Association at Guadalajara, Jalisco,
Mexico, is scheduled for delivery at 11:0Q a.m., C.S.T.,
Saturday, A p r i l T H V 195>lj and is for release at that
time.

To meet again with the members of the banking fraternity of Mexico
brings back many pleasing memories» I recall the warmth of your hospi­
tality and the lasting friendships that have grown out of my other visits
to your country, first as a private citizen — a banker — and later as
a representative of my Government. The wholehearted kindliness of your
receptions was always sincere, and I cherish the recollection of them.
I
was here in your country attending a joint session of Mexican
and United States bankers as a private banker from St. Louis when we
received word of the death of President Roosevelt and I was called to
Washington by President Truman to become a part of his Administration.
My friends here showed warm sympathy and understanding of the grave news.
On a much happier occasion, I was privileged to be the guest of your
government, representing President Truman at the time of the inauguration
of President Aleman.
It is with great pride that I count among my close associates in
Wasuington, many able representatives of the Mexican people, including
your representatives in the International Bank and the International
Fund, and your Ambassadors.
It was therefore with exceptional pleasure that I received and
accepted the cordial invitation of Gustavo R. Velasco, the esteemed
President of your organization.
Such warm, friendly relationships have made the anticipation of
this present visit most happy for me, for it has given me an opportunity
to visit with you and to exchange thoughts concerning our mutual economic
problems.
You and I gentlemen, belong to a generation that has seen events
of great tragedy and of great hope. We have seen two wars that have
involved the world in conflict on a scale the magnitude of which our
forefathers never dreamed. Our tragedy grew out of such disruptive
forces as lack of understanding of the proper relationship of individuals,
one to another, and wasteful preoccupation with relatively small and
unimportant things. These gave power-hungry dictators opportunities to
bring us all to the very brink of disaster.

S-2 6 7 1

-

2

-

184

But n o n e - t h e - le s s , we have had reason fo r g r e a t hope. We have
re p e lle d the grave th r e a ts o f the d i c t a t o r s h ip s . U n fo r tu n a te ly , s im ila r
and perhaps g r e a te r th r e a ts s t i l l rem ain. Y e t l e t no one doubt th a t we
have the courage and the stam ina and the a b i l i t y to meet them.
Despite every stress put upon us, our two countries,' as indeed
this entire hemisphere, have achieved much and made great progress
during the past decade* We have come through an historic and trying
test with stronger and closer economic and political and spiritual ties
than ever before. Our production and exchange of goods and services
have increased remarkably. Indeed the Economic Commission for Latin
America reported that your country, by 19l|.8 had achieved the greatest
increase in volume and diversification of production of any in Latin
America,
You have made great strides in industrialization, Your iron and
steel industry, since 1939* has more than tripled its production, Advances
have been made in metal fabrication, cement, glass and tile production,
rubber fabrication and, very importantly, the chemical and fertilizer
industries. Irrigation is bringing new land constantly into agricultural
use. New farming techniques and the work of agronomists are improving
the crops of cotton and maize and give promise of greatly expanding the
production of wheat. Similarly the yields of vegetables are increasing,
both due to greater numbers of arable acres and to productivity per acre.
In n o tab le co o p eratio n w ith our own Government, you have been able
v i r t u a l l y to conquer the scourge o f foot-an d -m outh d is e a s e .
As bankers, it must be a great satisfaction to you that your
Government and the Bank of Mexico have been able to repurchase the 37
million dollars of pesos sold to the United States Treasury under the
Stabilization Agreements of 19h7 and 19^9 • This cooperation helped you
to establish a sound basis for stability in the exchange value of your
currency. Your government has achieved not only a balanced budget but
a significant surplus in its fiscal accounts during the past two years.
It has been able at the same time to show a gain of nearly $25>0 million
dollars in monetary reserves since June, 19li9. You have good reason to
be proud of those records. I am in a position to appreciate the
difficulties of achieving such records, I want to congratulate my good
friend and your able Secretary of Finance, Rajnon Beteta, on the fine
progress his country has made.
Truly, these years of threat and challenge have proven also to be
years of real progress.
One o f the most s i g n i f i c a n t and dram atic s ig n s o f the p ro gre ss we
have made i s the now p r a c t i c a l concep t o f the co o p era tio n o f fr e e p eo p les
in m utually im proving t h e ir common l o t through p o s i t i v e a c t io n . In our
day t h i s e n lig h te n e d id e a has begun to sweep through th e fr e e c o u n tr ie s
and in s p ir e s them w ith the same v i g o r , the same f a i t h and the same t h r i l l i n g
promise th a t brought new hope to th e w orld when dem ocratic self-go vern m e n t
f i r s t began d e v e lo p in g ,

-3 -

185

We here in the Western Hemisphere can be proud that this concept
of international cooperation germinated with us. The peoples and the
governments of the Americas long ago developed the interchange of thought
and action, of mutual trust and fair dealing that has come to be known
as the Policy of the Good Neighbor. We have had a steady succession of
advances in cooperation and understanding. For a long time, now, we
have exchanged missions dealing with public affairs. We have joined
together in studying economic and social problems. We have devised new
methods and new organizations to meet them. In a sense, by fostering
and demonstrating the possibilities of cooperation, we helped pave the
way for the building of the United Nations. We can trace many of the
principles now operating in the United Nations to laboratory experiments
performed in our Hemisphere over the years.
These advances are continuing. President Truman’s Point Four
Program is well known to you. The principle of Point Four is expressed
in a single paragraph, as enunciated by President Truman and as declared
by the Congress of the United States in the Act for International
Development. Perhaps seldom in history has a principle fraught with so
much meaning for the individual welfare of men been set forth in so few
words. They are these:
•'The peoples of the United States
and other nations have a Common interest in
the freedom and in the economic and social
progress of all peoples. Such progress can
further the secure growth of democratic ways
of life, the expansion of mutually beneficial
commerce, the development of international
understanding and good will, and the maintenance
of world peace.”
We have devised, and are continuing to devise, means and machinery
to put that concept into positive action, ©ur common purpose is to aid
underdeveloped areas of the free world to develop their economic and
material resources by making easier the interchange of technical skills
and knowledge, and by encouraging the flow of private capital into
enterprises which will enable those countries to increase production*
In speaking of this significant advance in international cooperative
thinking, let me recall a paragraph in the speech that I heard your own
President, Dr. Miguel Aleman, deliver on the occasion of his inauguration
in 191*6. He spoke of one of the most important aspects of what has now
become the Point Four program. At that time he said:
"The industrial development of our nation
requires that certain fundamental factors should
go hand in hand, such as the use of technicians,
of whom we have not a sufficient number. We
must, therefore, train them within our borders

u

18G

or abroad, sending out our youths to become
proficient in foreign countries and bringing
to our country those foreign experts whose
knowledge is necessary for our industrial and
scientific progress.”
Those were his words.
underlay.

And now, this cooperative endeavor is well

What is happening, of course, is not wholly new. There always
have been visits of experts and exchange of technical service between
one country and another. But the clear recognition of the value of such
a commerce in ideas and the definite declaration of its purpose has
given new impetus to the process.
Literally hundreds of experts from many countries are now in the
United States and many United States experts are at work on problems in
other lands. By no means, however, can all of these experts be said
to be functioning specifically under the auspices of Point Four,
Nevertheless the Point Four program has turned attention of many agencies
and organizations to the usefulness of such visits. Through such
organizations as the Institute of Inter-American Affairs, the Economic
Cooperation Administration, the United Nations, and various governmental
agencies and private foundations, the pace of the exchange of technical
skills has increased substantially.
Your own experts have been in touch with ours at many points. Your
National Institute for the Investigation and Recoveiy of Minerals has
been in continuing contact with our own Bureau of Mines. The United
States Geological Survey, in cooperation with your own people, has
continued the work begun in 19^0 of investigating metallic and non-metallic
mineral resources, as a possible foundation for further expansion of
Mexico*s justly famous mining industry. There has been further cooperation
between our Social Security Administration and your own social welfare
and health officials. We are all well aware of the advances of Mexican
agriculture and the development of new strains of corn and wheat by the
joint effort of the United States and Mexican scientists at Chapingo.
These are only a few examples of the many fields in which together we
are expanding our skills. Let me add that the list of similar accomplish­
ments in this Hemisphere outside of Mexico and the United States is also
very long.
However, a great deal more remains to be done. The distribution
of technical knowledge, the improvement of the skills of workers and train­
ing in new methods take time. We know that retooling a factory to enable
the machines to produce better goods cannot be done overnight. This is
equally true of educating men and women. Yet when the retooling or
educating is accomplished, the results can be amazing.
Our Western Hemisphere experience will contribute much to the program
for putting Point Four into action. There are now cooperative service

187
-5 agencies, or servicios, operating in sixteen Latin American countries.
They are staffed jointly by experts from the United States and from the
countries that are the hosts. They provide a pattern for other areas.
They are doing highly successful work in the fields of agriculture, health
and sanitation, education, and vocational training.
You will recall that during World War II a Mexican-American Development
Commission, in addition to other accomplishments, made detailed plans for
a series of projects including irrigation, power, chemicals, steel and
various manufactures. We have learned well the important role that mixed
commissions can perform.
We have learned, too, that in a growing economy, it is tremendously
important to possess skill and the knowledge of ways of meeting industrial
problems. The skilful workman will need tools and materials. The ex­
panding industries cannot develop without physical equipment. Agriculture
must have new machines to till the soil and to harvest the crops. There
must be supplies of power and energy. And all of these necessities
require investment funds.
Therefore, as part of Point Four, we are seeking to encourage the
flow of capital into underdeveloped countries.
Let me remind you that those who know the history of the United
States realize fully how vital were those investments from abroad which
aided the early development of the national resources of my own country.
For many decades, the United States imported capital. At that time,
ray country was one of the most striking examples of an underdeveloped
area. If it had not been for the investment of foreign capital, the
United States of America would never have made such rapid progress.
Against this background of experience, agencies had been created to
promote the movement of capital into the underdeveloped countries even
before the clear enunciation of Point Four as part of United States
policy. These agencies were charged with the duty of taking into
consideration, in making loans, not only the protection of the interest
of the investor but also that of the public welfare of the country in
which the investment was to be made.
You are well aware of the operation of the International Bank for
Reconstruction and Development, and of the Export-Import Bank, an agency
of the United States Government.
The International Bank assists in making available capital resources
and thus provides an important basis for further international economic
development. Loans from this agency, for example, have assisted your
Federal Electricity Commission’s program for construction of hydro and
thermo electric power plants, the expansion by Mexlight of its generating,

188
-

6

-

transmission and distributing facilities, and also will be of use to a
consortium of your commercial banks in financing a variety of other
projects.
The United States Export-Import Bank has loaned, or earmarked for
projects in Mexico, credits of more than $200 million during the tenure
of President Aleman. I think merely listing the kinds of projects to
be advanced by these credits shows that they were made available in the
spirit of Point Four. The loans will help in the improvement and ex­
tension of railways and highways, generation and transmission of electricity,
improvement of telecommunication
all of which are facilities basic to
sound economic progress. Also in the list are such enterprises as an
ammonia plant, meat packing plants and sugar mills. Irrigation and
other aids to agriculture hold an important place.
These activities, as I have said, are all in the spirit of Point
Four. Yet the full realization of Point Four will not come until there
is a substantial movement of private foreign capital to join in partner­
ship with private domestic capital in aiding the development of production
and the improvement of standards of living. This partnership will benefit
both the investors immediately concerned and the people as a whole.
I
stress the word partnership because it is at the heart of the
Point Four concept. The partnership principle in carrying out our
specific projects is important for several reasons. When foreign and
domestic capital join hands in an enterprise, that enterprise is apt to
function smoothly and without interruption. Any enterprise is more
likely to succeed if it engenders faith in the community where it has
its home. Such a partnership of capital also tends to produce a greater
unity of point of view and purpose. This is of particular value in
promoting that regard for the public welfare which Point Four makes a
fundamental requirement.
Informed cooperation of domestic capital, therefore, is essential
if Point Four is to be translated into tangible programs and projects.
On this point, gentlemen^ bankers can do a great deal in each country
to bring about the orderly and permanent economic development envisaged
in this concept. Of course, this is no new function. It is one that
bankers have long been performing. However, familiar functions gain new
importance as new attitudes produce new emphasis. The new attitude and
emphasis that Point Four seeks to advance places a heavy responsibility
upon the banking fraternity.
Commercial bankers have a great service to perform for their clients
and for their communities. In times of stress, this service becomes of
utmost importance. For example, in the United States we have sought
the help of commercial bankers in voluntary programs to curb the use of
credit for non-essential spending as part of our effort to prevent
inflation. In other times, we have requested the cooperation of bankers
to expand credit. In countries where investment funds are not too
Plentiful, bankers can do much to direct the funds available into more

- 7 -

189

constructive enterprises and projects that contribute to the permanent
and prudent development of natural resources. The bankers* advice to
investors, as we all know, can have a great influence upon the most pro­
ductive use of available domestic capital.
One of the strongest inducements that foreign capital can have for
entering a country is a demonstration of the faith of that country* s
citizens in its future. An evidence of this faith is the willingness
of domestic capital to bear a share of the risk of projects in which
foreign capital is invited to take part, and to make it clear that such
foreign capital is welcome* Perhaps that is a truism but often it is
well to remind ourselves of the obvious.
I have purposely omitted, up to this point, mentioning our mutual
efforts for building a stronger defense of the hemisphere, and the relation
of these efforts to the economic development programs of the various
countries. This isi a matter, however, of too grave importance to be left
untouched in this discussion. It is particularly fitting that tribute
should be paid to the wonderful spirit of cooperation among the American
Republics which was evidenced at the recent Foreign Ministers meeting
in Washington. The meeting resulted in agreement upon the principles
which should govern our mutual efforts for the defense of the hemisphere
in the political, military and economic fields.
The resolutions adopted at the meeting recognized the importance
of economic development in the pattern of Hemispheric defense, They also
recognized that the efforts to strengthen the defense and the maintenance
of essential civilian activities constitute the prime duty of the American
States in the present emergency. This may necessitate the postponement
of some development projects which might otherwise have been carried out.
However, the very measures which are being taken to stimulate pro­
duction of supplies essential for the defense effort will, 'in many
instances, contribute to permanent economic improvement. Industrial
expansion created in the first instance to produce for defense can later
be converted to production for other purposes. There have been many times
in history when swords have been beaten into plowshares. I have faith
that such times will come again.
I have faith that we shall overcome every menace and every threat.
The free democracies of the world have joined hands for their mutual
defense and for the preservation of their freedoms. At the same time,
they are determined to work together for economic improvement in every
area.
The Four Freedoms which we desire as foundations for our world have
been widely stated — freedom of expression, freedom of worship, freedom
from want, and freedom from fear. We have preserved in large areas the
first two freedoms. We are engaged in a struggle to free the world from
fear and we will go forward staunchly with our effort to build together
the other freedom, freedom from want. I believe the spirit of Point Four,
which is basically that of mutual cooperation, will help us substantially
m that effort. How much it will help remains for each of us to decide,,

0O0

The enthusiastic support of the
jSpvings Bond Program which 1 am
seeing demonstrated here in^Atlanta
today, gives me full confidence and
assurance of the national acceptance
of the challenge for accomplishment
of exceptional results during the
Defense Bond Month in May.
I than* you for this demonstration
it will be a guide and inspiration
to the Savings Bond worxers in every
bbs

comrnunIty.

- ir
the privilege of retainirig- your
matured £ Bonds up to ten years
longer.

Through this Act, you may

elect to Keep them for an additional
ten year period, with the same benefit
There may be some who want to Keep
the ir money invested in Savings Bonds
and at the same time receive current
interest payments,

if so, their

banner will be able to tell them how
to do this by exchanging matured
E Bonds for Series G Bonds.

active persona I part in the defense
program of our country.
Ten years ago the Treasury
promised £ Bond buyers that at the
end of ten years ft would pay $100
far each $75 Invested.

The Treasury

today is prepared to mane good
that promise as these bonds begin to
mature.

■

However, we believe that many
people wi l l want to Keep their
investment as it Is.
ti

So, only a short

an Act of Congress r*rov i

the Importance of thrift in the
Afterican Economy.

Since 1 have

held this office, ! have been more
convinces than ever, ana have
constantly endeavored,'to awaken in
the citizens of America an appréciât!
of the desirability of investment
savings.

Through an investment

today in United States Savings Bonds,
we are enabled not on Iy to obtain
the future rewards of thrift but
we are also enabled to take an

without fanfare
s have

*ity

A
■w

H

ish, patriotic

w

American ingenui
d ispI eyed
rs in their voIuntary
Ions

Treasury, I was convinced of

13 they were cal led Defense Bonds.
Truly they were well named, for In
those ten years they have contributed
greatly to our military and
economic defenses.
The millions of Amerlean?men,
women and chiIdren who have
invested in Defense Bonds and the
millions of volunteers who have
sold Defense Bonds have done a
great patriotic service.
These individual Americans

T Q t
\c l

And

contribution can be made in

if number of ways.
Mecannot all be in the armed

forces.

We cannot all work in
mi ‘'*\ '| Iff

defense industry.

But we can all

take part in the strengthening of
our fiscal security and our
national economy through the
Uni ted States Defense Bond program.
S| ^
____ ____ ....._
_____
y Tomer row, the first of Series £
Savings Bonds will begin to mature,
they were issued May I, 1941,

through strong character, earnest
labor and personal sacrifices.
Individuals or nations Is c k Ing the
strength of character and the
willingness to pay in war« for the
realization of their hopes seldom

Split! If ill 11

‘>:V,t|

s|| jg ^ p P B l^ E

|j

achieve them.
We a i k realize that it is
w **1tjh/k?A':A y '"■'

v'J. x%
h\

ffiBPr

more difficult to carry on a
** t & ’

.

>.

' . l■''I■r,\)

ill u

'/

sustained effort than to roaKe one
brief, ail-out endeavor.

Yet it

is certain that there are some

action with foresight and
self-restraint*

Our decisions must

be made on the basis of sound
reasoning and not from mere emotion
Often, under the stress of
irritation and annoyance,-the
temptat 5on to strike out blindly is
very strong.

But to follow that

impulse would lead down the road
to disaster.
Ultimate success in building
our defenses can be achieved only

s stili seeKing.

can reach it

it will not permit aggression to go
unopposed.

it has decisively shown

O- Hitfftll f|1 *I

sifppllii

that it does not^intend to allow

armed conflict to spread If any
honorable means of preventing such
a tragedy can be found.
The goal of th is positive
defense policy must of necessity be
peace —

peace, with freedom and

justice.

There can be no other

Ki nd

of peace any more than there

can be real freedom or real justice

| p p | } '

-

s

-

themselves from a Communist attemot
p

f

l

|

H

38 r'‘^

f

v&'i 111 1< , i|i'

\

"y'y*,>' l */' §§|J8i ! I

>,4 *

at revolution that «¡as almost

successful.

The airlift saved Berlin.
. u r;fO< WmW

r ,>:/

H

’

Marshall Aid gave strength to
•;

\'
"

Europe's hope for a free western
democracy.

Under the Atlantic Pact,
;..;; -,& p 77

^vfv'"r ■;•*-/;S k

C7l A , , •

pv7'.v7.' j

the nations of that area will soon
be

prepared to resist

aggress ion.
I

1
/

"/United Nations action in Korea
has so far averted iori8 War Three.
This council has made clear that

United States, in the face?.-of every
plot and every ruthless attempt to
spread dictatorship has won victory
after victory.
Si have used our resources not
on Iy in holding back acti ve Communist
aggression, but also in effectively
repelling its threat of attack.
Through firm action we defeated the
threat against Turkey by prompt
economic assistance.

American aid

helped the people of Greece to free

ourselves and to promote those
principles, those freedoms, without
which there

they may Iive, those concepts must
grow and flourish in an atmosphere
of determination to preserve them.
Those principles are freedom
of thought and action,

freedom of

worship, freedom to govern ourselves
in fact all those freedoms which go
to maKe up freedom of the human
spirit.
This threat is an age-old
threat.

It is the menace that

dictatorship always creates through

Let us wake no mistake about
tne sense in which we use the word
defense.

Defense can never be
I y#*

'M

|f|p

/\

,*

1

passive.

Sound defense must be

active,

We cannot rest upon the

achievements of the past.

We must

heed the necessities of the present and of the future.
The very concepts which we seek
to defend are those whose values
have become intrinsic parts of our
daily living.

And in order that

done

I I conce

and

e into

citi?en

m■

;'tìf'l’i

particularly glad to join in this

city are giving an impress ive
demonstrat ion of this
united determ ?nation

The following address by Secretary of the
Treasury John W, Snyder before the Atlanta
Defense Day Luncheon at the Ansley Hotel,
Atlanta, Georgia, is scheduled for ricnivgry
at 1:30 p.m.(EST) Monday A p r T T 30. 1951.
and is- for release at that time.

210
TREASURY DEPARTMENT
Washington

The following address by Secretary of the Treasury
John W, Snyder before the Atlanta Defense Day
Luncheon at the Ansley Hotel, Atlanta, Georgia, is
scheduled for delivery at 1:30 p.m, (EST) Monday,
April 30,1951» and is for release at that time*

What is being said and done here in Atlanta today truly has been
well conceived to put courage and hope into the hearts of every citizen
of our land. I, for one, am particularly glad to join in this Atlanta
Defense Day program. The citizens of this splendid southern city are
giving an impressive demonstration of this country*s united determination
to defend the heritage of the free world.
Let us make no mistake about the sense in which we use the word
defense. Defense can never be passive. Sound defense must be active.
We cannot rest upon the achievements of the past. We must heed the
necessities of the present — and of the future.
The very concepts which we seek to defend are those whose values
have become intrinsic parts of our daily living. And in order that
they may live, those concepts must grow and flourish in an atmosphere
of determination to preserve them.
Those principles are freedom of thought and action, freedom of
worship, freedom to govern ourselves — in fact all those freedoms which
go to make up freedom of the human spirit.
This threat is an age-old threat. It is the menace that dictator­
ship always creates through naked power. This type of tyranny has been
let loose upon the world many times. We are not the only generation
that faced thia danger, although we may today be meeting this specter
in a new and swollen form.
Much has been done to protect ourselves and to promote those
principles, those freedoms, without which there would be little to defend.
The foreign policy of the United States, in the face of every plot and
every ruthless attempt to spread dictatorship has won victory after
victory.
We have used our resources not only in holding back active Communist
aggression, but also in effectively repelling its threat of attack. Through
firm action we defeated the threat against Turkey by prompt economic
assistance. American aid helped the people of Greece to free themselves
from a Communist attempt at revolution that was almost successful. The
airlift saved Berlin, Marshall Aid gave strength to Europefs hope for
a free western democracy. Under the Atlantic Pact.» the nations of that
area will soon be prepared to resist aggression.

S-2672

-

2

211
-

United Nations action in Korea has so far averted World War Three,
This council has made clear that it will not permit aggression to go
unopposed. It has decisively shown that it does not intend to allow
armed conflict to spread if any honorable means of preventing such a
tragedy can be found.
The goal of this positive defense policy must of necessity be
peace — peace, with freedom and justice. There can be no other kind of
peace any more than there can be real freedom or real justice in a
world t o m by force and subject to the stress and strain resultant from
the suppression of human rights by unbridled power,
Peace with freedom and justice, therefore becomes the ultimate goal
of our own defense program. Indeed, it is what humanity has always
sought and is still seeking,
I sincere^ believe that it is attainable. Yet we can reach it
only if we couple courage and firm action with foresight and selfrestraint, Our decisions must be made on the basis of sound reasoning
and not from mere emotion.
Often, under the stress of irritation and annoyance, the temptation
to strike out blindly is very strong. But to follow that impulse would
lead down the road to disa'ster.
Ultimate success in building our defenses can be achieved only
through strong character, earnest labor and personal sacrifices. Individuals
or nations lacking the strength of character and the willingness to pay
in work for the realization of their hopes seldom achieve them.
We all realize that it is more difficult to carry on a sustained
effort than to make one brief, all-out endeavor. Yet it is certain that
there are some situations in which long, relentless striving for a cherished
goal can alone bring the correct and lasting solution.
Our people have the stamina to take that course — the same strength
of spirit that brought our country into being, the same fortitude that
has brought us through every test a freer and stronger nation. Each of
us can make our own contribution towards fortifying that strength. And
that contribution can be made in a number of ways.
We cannot all be in the armed forces. We cannot all work in
defense industry. But we can all take part in the strengthening of our
fiscal security and our national economy through the United States
Defense Bond program.

Tomorrow,
When they were
they were well
greatly to our

the first of Series E Savings Bonds will begin to mature.
issued May 1, 19i*l, they were called defense Bonds. Truly
named, for in those ten years they have contributed
military and economic defenses*

The millions of American men, women and children who have invested
in Defense Bonds and the millions of volunteers who have sold Defense
Bonds have done a great patriotic service*
These individual Americans have gone about their work of selling
bonds without fanfare of personal publicity, but their efforts have been
tremendously effective. I could tell you many stories ox the unselfish,
patriotic and good old«fashioned American ingenuity that these people
have displayed over the years in their voluntary contributions.
Long before I became Secretary of the Treasury, I was convinced
of the importance of thrift in the American Economy. Since I have held
this office, I have been more convinced than ever, and have constantly
endeavored to awaken in the citizens of America an appreciation of the
desirability of investment savings* Through an investment today in
United States Savings Bonds, we are enabled not only to obtain the future
rewards of thrift but we are also enabled to take an active personal part
in the defense program of our country.
Ten years ago the Treasury promised E Bond buyers that at the end
of ten years it would pay |1 Q0 for each $75 invested. The Treasury today
is prepared to make good that promise as these bonds begin to mature.
However, we believe that many people will want to keep their invest­
ment as it is. So, only a short time ago an Act of Congress provided
the privilege of retaining your matured E Bonds up to ten years longer.
Through this Act, you may elect to keep them for an additional ten year
period, with the same benefits. There may be some who want to keep
their money invested in Savings Bonds and at the same time receive current
interest payments. If so, their banker will be able to tell them how to
do this by exchanging matured E Bonds for Series G Bonds.
I know the Treasury*s organization for national defense — the
owners of - and the volunteer salesmen of » Defense Bonds — will continue
to carry out the wonderful work they have been doing*
We hope, during May
which has been designated Defense Bond Month —
to sell extra Defense Bonds to millions of families.
We hope also to extend substantially the participation in the Payroll
Savings plan.

-■ it -

213

The enthusiastic support of the Savings Bond Program which I am
seeing demonstrated here in Atlanta today, gives me full confidence and
assurance of the national acceptance of the challenge for accomplishment
of exceptional results during the Defense Bond Month in May,
I thank you for this demonstration. It will be a guide and
inspiration to the Savings Bond workers in every community.

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 bZ and 117 (a) (1) of the Internal Revenue Code,

as amended by Section 11$ of the Revenue Act of 19Ul, the amount of discount at
which bills issued hereunder are sold shall not be considered to accrue until
such bills shall be sold, redeemed or otherwise disposed of, and such bills are
excluded from consideration as capital assets.

Accordingly, the owner of

Treasury bills (other than life insurance companies) issued hereunder need in­
clude in his income tax return only the difference between the price paid for
such bills, whether on original issue or on subsequent purchase, and the amount I
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, prescribí
the terns of the Treasury bills and govern the conditions of their issue.
of the circular may be obtained from any Federal Reserve Bank or Branch.

Copia

-

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 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
May 3 . 19$1

Federal Reserve Bank on
—

.

, in cash or other immediately avail----------

able funds or in a like face amount of Treasury bills maturing
Cash and exchange tenders will receive equal treatment.

May 3. 19E>1.

*
Cash adjustments will be

made for differences between the par value of maturing bills accepted in exchange
and the issue price of the new bills.
The income derived from Treasury bills, whether interest or gain from the
sale or other disposition of the bills, shall not have any exemption, as such,
and loss from the sale or other disposition of Treasury bills shall not have any
special treatment, as such, under the Internal Revenue Code, or laws amendatory
or supplementary thereto.
gift

The bills shall be subject to estate, inheritance,

or other excise taxes, whether Federal or State, but shall be exempt from

all taxation now or hereafter imposed on the principal or interest thereof by

|

M 3M

^ - WaghiU^tOli""1'*
FOR RELEASE, MORNING NEWSPAPERS,
Thursday3 April 26, 1 9 5 1 _____ •

The Secretary of the Treasury, by this public notice* invites tenders for
$ 1.100,000,000 , or thereabouts, of
in exchange for Treasury bills maturing

91 -day Treasury bills, for cash and
yra.v S. 19^1

_____ > to be issued on

JlIIh ^

a discount basis under competitive and non-competitive bidding as hereinafter
provided*
vail mature
interest»

The bills of this series vail be dated

May 3* 1951
, and
------------------------, when the face amount will be payable vdthout

August 2, 1951

They vdll be issued in bearer form only, and in denominations of

$1,000, $5*000, $10,000, $100,000, $500,000, and $1,000,000 (maturity value).
Tenders vdll be received at Federal Reserve Banks and Branches up to the
Daylight Saving
closing hour, two o ’clock p.m., Eastern/Staatixjci time, Monday, April 30» 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, vdth not more than three
decimals, e. g., 99.925.

Fractions may not be used.

It is urged that tenders

be made on the printed forms and forwarded in the special envelopes which vdll
be supplied by Federal Reserve Banks or Branches on application therefor.
Others than banking institutions vdll not be permitted to submit tenders
except for their own account.

Tenders vdll be received vdthout 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

REIiEASE MORNING NEWSPAPERS,
A p r i l 26, 1951.

Thursday,

S -2673

The S e c r e t a r y of the T r e a s u r y / b y this p u b l i c notice, invites
tenders for $ 1 , 1 0 0 , 0 0 0 , 0 0 0 , or thereabouts, of 9 1 - d a y T r e a s u r y
bills, for cash a nd in e x c h a n g e for T r e a s u r y bills m a t u r i n g
May 3, 1951, to be i s sued on a d i s c o u n t b a sis u n d e r c o m p e t i t i v e and
n o n - c o m p e t i t i v e b i d d i n g as h e r e i n a f t e r p r o vided.
The b i l l s of this
series w i l l be d a t e d M a y 3, 1951, a nd w i l l m a t u r e A u g u s t 2, 1951,
when the face a m o u n t w i l l be p a y a b l e w i t h o u t interest.
They will
be issued in b e a r e r f o r m only, and in d e n o m i n a t i o n s of $1,000,
$5,000, $10,000, $100,000, $ 5 0 0 , 0 0 0 , a n d $ 1 , 0 0 0 , 0 0 0 ( m a t u r i t y value)
T e n d e r s w i l l be r e c e i v e d at F e d e r a l R e s e r v e B a n k s and B r a n c h e s
up to the c l o s i n g hour, two o ' c l o c k p.m., E a s t e r n D a y l i g h t S a v i n g
time, Monday, A p r i l 30, 1951.
Te n d e r s w i l l n o t be r e c e i v e d at the
Treasury D e p a r t m e n t , W a s h i n g t o n .
E a c h t e n d e r nus t be for a n e v e n
multiple of $1,000, an d in the case of c o m p e t i t i v e tenders the p r i c e
offered m u s t be e x p r e s s e d on the b a sis of 100, w i t h not m o r e than
three decimals, e. g., 99*925.
F r a c t i o n s m a y not be used»
It is
urged that tenders be m a d e on the p r i n t e d forms and f o r w a r d e d in
the s p eci al e n v e l o p e s w h i c h w i l l be s u p p l i e d b y F e d e r a l R e s e r v e
Banks or B r a n c h e s on a p p l i c a t i o n therefor.
Others t h a n b a n k i n g i n s t i t u t i o n s w i l l not be p e r m i t t e d to
submit tenders e x c e p t for t h eir o w n account.
T e n d e r s w i l l be
received w i t h o u t d e p o s i t f rom i n c o r p o r a t e d b a n k s a nd trust c o m p anies
and from r e s p o n s i b l e and r e c o g n i z e d d e a l e r s in i n v e s t m e n t s e c u r i t i e s
Tenders f r o m others m u s t be a c c o m p a n i e d b y p a y m e n t of 2 p e r c e n t of
the face a m o u n t of T r e a s u r y b i lls a p p l i e d for, u n less the t e n ders
are a c c o m p a n i e d b y a n ex p r e s s g u a r a n t y of p a y m e n t b y a n i n c o r p o r a t e d
bank or trust company.
I m m e d i a t e l y a f t e r the c l o s i n g hour, tenders w i l l be o p e n e d at
the F e d e r a l R e s e r v e B a n k s a nd B r a n c h e s , f o l l o w i n g w h i c h p u b l i c
announcement w i l l be m a d e b y the S e c r e t a r y of the T r e a s u r y of the
amount and p r i c e range of a c c e p t e d b i d s . Those s u b m i t t i n g tenders
will be a d v i s e d of the a c c e p t a n c e or r e j e c t i o n thereof.
The
Secretary of the T r e a s u r y e x p r e s s l y r e s e r v e s the r i g h t to a c c e p t or
reject a n y or a ll tenders, in w h o l e or in part, a n d his a c t i o n in
any such r e s p e c t shall be final.
S u b j e c t to these re s e r v a t i o n s ,
non-competitive tenders for $ 2 0 0 , 0 0 0 or less w i t h o u t s t ated p r ice
from a ny one b i d d e r w i l l be a c c e p t e d in full at the a v e r a g e p r ice

2
(in three dec i m a l s ) of a c c e p t e d c o m p e t i t i v e bids.
S e t t l e m e n t for
a c c e p t e d 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 M a y 3, 1951, in cash or
o t h e r i m m e d i a t e l y a v a i l a b l e funds or in a like face a m o u n t of
T r e a s u r y bills m a t u r i n g M a y 3 , 1951.
C a s h and e x c h a n g e 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 be m a d e for
d i f f e r e n c e s b e t w e e n the p a r value 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 and the issue price of the n e w bills.
The income d e r i v e d f r o m T r e a s u r y bills, w h e t h e r i n t e r e s t or gair
f rom the sale or o t her d i s p o s i t i o n of the bills, shall not have any
exemption, as such, a n d loss f r o m the sale or o t h e r d i s p o s i t i o n of
T r e a s u r y b i lls shall n ot h a v e a n y sp e c i a l treatment, as such, under
the I n t e r n a l R e v e n u e Code, or laws a m e n d a t o r y or s u p p l e m e n t a r y
thereto.
The bills shall be s u b ject to estate, inheritance, gift
or o t her e x cise taxes,, w h e t h e r F e d e r a l or State, but shall be
e x e m p t f 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 o s e d on the principal
or i n t e r e s t t h e r e o f b y a n y State, or a n y of the p o s s e s s i o n s of the
U n i t e d States, or b y a n y l o cal t a x i n g aut h o r i t y .
F o r p u r p o s e s of
t a x a t i o n the a m o u n t of d i s c o u n t at w h i c h 'Treasury bills are
o r i g i n a l l y sold b y the U n i t e d S t ates s h all be c o n s i d e r e d to be
interest.
U n d e r S e c tions 42 a n d 117 (a) (l) of the I n t e r n a l Revenue
Code, as a m e n d e d b y S e c t i o n 115 of the R e v e n u e A c t of 1941, the
a m o u n t of d i s c o u n t at w h i c h bills i s s u e d h e r e u n d e r are sold shall
not be c o n s i d e r e d to accrue u n t i l such bills shall be sold,
r e d e e m e d or o t h e r w i s e d i s p o s e d of, and such b i lls are e x c l u d e d from
c o n s i d e r a t i o n as ca p i t a l assets.
A c c o r d i n g l y , the o w n e r of Treasury
b i lls (other t h a n life ins u r a n c e companies) i s s u e d h e r e u n d e r need
i n c lude in his income tax r e t u r n o nly the d i f f e r e n c e b e t w e e n the
p r i c e p a i d for such bills, w h e t h e r on o r i g i n a l issue or on s u b ­
s e q u e n t purchase, 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 pon
sale or r e d e m p t i o n at m a t u r i t y d u r i n g the taxable y e a r for which
the r e t u r n is made, as o r d i n a r y g a i n or loss.
T r e a s u r y D e p a r t m e n t C i r c u l a r No. 418, as amended, a n d this
notice, p r e s c r i b e the terms of the T r e a s u r y bills a n d g o v e r n the
c o n d i t i o n s of their i s s u e . Copies of the c i r c u l a r m a y be obtained
f r o m a n y F e d e r a l R e s e r v e B a n k or Branch.

oOo

Ml

'■

-

2

-

Commissioner schoeneman expressed confidence that General Dunlap is
peculiarly fitted and can be counted upon to produce the results needed
in this field.
Mr. Dunlap is a Dallas product, having been born and brought up
in that Texas city, and, except for his duty with the Army, has spent
ail his life there,

tie has been a Director of the Dallas Community

Chest and has been active in many civic and religious organizations.
Next week, General Dunlap will report in Washington where he will
assume personal direction of the tax drive to be directed against
known or suspected members of the criminal element.

More than 100

«racket squads« are being set up throughout the United states in the
field offices of the Intelligence Unit, and in offices of Internal
Revenue Agents in Charge and Collectors.

These squads will devote

their entire time to investigations of tax returns of racketeers and
of other criminals.
General Dunlap intends to confer with Treasury representatives and
other public officials in various sections of the country within a short
time.

He will personally visit most of the larger cities for this

purpose».
Through these visits he expects to establish personal contacts
which will be of assistance as the activities of the Special Fraud
Section further develop»

v

Secretary of the Treasury John W. Snyder today announced the

completion of his organization plans to intensify the drive against
racketeer tax evaders.

Announcement that such an organization was

being established was made on March IS.
Secretary Snyder said that Commissioner of Internal Revenue
George J. Schoeneman had selected General John B. Dunlap of Dallas,
Texas, to direct the work of the new organization.
Mr. Dunlap, a Brigadier General of the 22nd Armored Division of
the Active Reserves, is now Internal Revenue Agent in Charge of the
Dallas Division.

He was Collector of Internal Revenue for the First

District of Texas from March I 9I4.9 to February of last year when he was
appointed to the position he now holds.

With the exception of his

active array duty, he has been in the internal Revenue Service since
1933 when he was made a Deputy Collector, and has been promoted through
the ranks as Division Chief and Assistant to the Collector.

In 19^7

he was designated Acting Collector and remained in this capacity until
his appointment as Collector in 19U9*
For nearly five years, Mr. Dunlap was on active duty with the Array,
entering as a major in I 9I1Í with a Texas National Guard cavalry brigade.
With the rank of Colonel, he was in charge of intelligence and operations
in the planning of the invasion of the Kurile Islands, one of the top
secret actions of World War XI.

Because of his array work in intelligence

and operations and his rich background in the Internal Revenue service,

2
N e x t week, G e n e r a l D u n l a p w i l l r e p o r t in W a s h i n g t o n where
he w i l l a s s u m e p e r s o n a l d i r e c t i o n of the tax d r ive to he
d i r e c t e d a g a i n s t k n o w n or s u s p e c t e d m e m b e r s of the c r i m i n a l
element.
Mor e t h a n 100 "racket squads" are b e i n g set up
t h r o u g h o u t the U n i t e d States in the field offices of the
I n t e l l i g e n c e Unit, a nd in o f f i c e s of I n f e r n a l R e v e n u e A g e n t s in
Charge and C o l l e c t o r s .
T h ese squads w i l l d e v o t e their entire
time to i n v e s t i g a t i o n s of tax re t u r n s of r a c k e t e e r s a nd of
other c r i m i n a l s .
G e n e r a l D u n l a p intends to confer w i t h T r e a s u r y representatives
an d o t h e r p u b l i c o f f i c i a l s in v a r i o u s s e c tions of the country
w i t h i n a short time.
He w i l l p e r s o n a l l y v i s i t m o s t of the larger
cities for this p u r p o s e .
T h r o u g h these v i s i t s he e x p e c t s to e s t a b l i s h p e r s o n a l
co n t a c t s w h i c h w i l l be of a s s i s t a n c e as the a c t i v i t i e s of the
S p e c i a l F r a u d S e c t i o n f u r t h e r develop.

0O0

TREASURY DEPARTMENT
Infprmation Service

R E L E A S E S U N D A Y NEWS P A P E R S ,
A p r i l 29, 1951._____________

Wa s h i n g t o n ,

d .c

.

S-26 74

S e c r e t a r y of the T r e a s u r y J o h n W. S n y d e r t o d a y a n n o u n c e d
the c o m p l e t i o n of his o r g a n i z a t i o n p l a n s to i n t e n s i f y the drive
a g a i n s t r a c k e t e e r tax evaders.
A n n o u n c e m e n t that such a n o r g a n i ­
z a t i o n was b e i n g e s t a b l i s h e d was m a d e on M a r c h 18.
S e c r e t a r y S n y d e r said that C o m m i s s i o n e r of I n t e r n a l Revenue
G e orge J. S c h o e n e m a n h a d s e l e c t e d G e n e r a l J o h n B. D u n l a p of
D a l l a s , Texas, to d i r e c t the w o r k of the n e w organ i z a t i o n .
Mr. Dunlap, a B r i g a d i e r G e n e r a l of the 2 2 n d A r m o r e d Division
of the A c t i v e R e s e rves, is n o w I n t e r n a l R e v e n u e A g e n t in Charge
of the D a l l a s D i v i s i o n .
H e was C o l l e c t o r of I n t e r n a l Revenue
for the F i r s t D i s t r i c t of Texas f r o m M a r c h 1 9 *1-9 to F e b r u a r y of
last y e a r w h e n he was a p p o i n t e d to the p o s i t i o n he n o w h o l d s .
W i t h the e x c e p t i o n of h is a c t i v e a r m y duty, he has b e e n in the
I n t e r n a l R e v e n u e S e r vice since 1933 w h e n he was m a d e a D e p u t y
Collector, a nd has b e e n p r o m o t e d t h r o u g h the ranks as D i v i s i o n
C h i e f a nd A s s i s t a n t to the C o l l ector.
In 1 9 ^ 7 he was designated
A c t i n g C o l l e c t o r a nd r e m a i n e d in this c a p a c i t y u n t i l his a p p o i n t ­
m e n t as C o l l e c t o r in 1 9 ^ 9 .
F o r n e a r l y five years, Mr. D u n l a p was on a c t i v e d u t y with
the Army, e n t e r i n g as a m a j o r in 19*1-1 w i t h a Texas N a t i o n a l
G u a r d c a v a l r y b r i gade.
W i t h the r a n k of Colonel, he was in
charge of i n t e l l i g e n c e a nd o p e r a t i o n s In the p l a n n i n g of the
i n v a s i o n of the K u r i l e Islands, one of the top secret actions
of W o r l d W a r II.
B e c a u s e of his a r m y w o r k in i n t e l l i g e n c e and
o p e r a t i o n s a nd his r i c h b a c k g r o u n d in the I n t e r n a l Revenue
Service, 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 c o n f i d e n c e that
G e n e r a l D u n l a p is p e c u l i a r l y fitt e d a nd can be c o u n t e d u p o n to
p r o d u c e the r e sults n e e d e d in this field.
Mr. D u n l a p is a D a l l a s product, h a v i n g b e e n b o r n and brought
up in that Texas city, and, e x c e p t for his d u t y w i t h the Army,
has spent a ll h i s life t h e r e . He h as b e e n a D i r e c t o r of the
D a l l a s C o m m u n i t y C h e s t and has b e e n a c t i v e in m a n y civic and
religious o r g a n i z a t i o n s .

EtLKASE, i » l i

H1HSPAFEES,

Tueéday, May la 1951«
The Seeretary of thè Treaeury announeed lesi evening that thè tendere for
#1,100,000,000, or thereaboute, of 91-day Treaeury bilie io be dated May 3 end io nature
Augnai 2, 1951, whieh vere offered on Aprii 26, vere © p « l ai thè Federai Reeerve Banks
on Aprii 30.
The detaile of thie leene are ae follovet
Total applied for - #2,176,555,000
Total aceepted
• 1,101,893,000 (include« 1112,178,000 entered on a
non-competitire beale and aceepted in
full et thè average prlee whmm below)
Average price
- 99*619 Equivalent rate of dieeount approx. 1*5085 per annue
(Exeepting one tender of #1 ,000,000)

tango of aecepted competitive bidet

Sigh
lo*

- 99*625
. 99.617

Equivalent rate of dieeount approx*

*

•

*

*

*

I«i*8b5 per annua
1.5355 •
•

(5 percent of thè awount bìd for at thè lev prie® vae aceepted)

Federai Reeerve
District

Total
Applied for

Boston
Eev Tork
Philadelphia
Cleveland
Eiehiiiond
Atlanta
Chicago
St. Louis
Mimteapolie
Kansas City
Ballae
Sa» Francisco

1

1*0,121*,000
1 ,6 0 0 ,6 3 7 ,0 0 0
3 9 ,0 9 5 ,0 0 0
5 6 ,1 0 2 ,0 0 0
1 2 ,9 0 0 ,0 0 0
U t,50 9 ,0 0 0
228,1*91,000
1 5 ,6 0 1 ,0 0 0
2 ,9 2 6 ,0 0 0
3 9 ,9 0 1 ,0 0 0
5 6 ,7 6 9 ,0 0 0
6 9 .1 7 0 ,0 0 0

TOTA!

7 2 ,1 7 6 ,5 5 5 ,0 0 0

Total
Aecepted
1

36,221»,«50
691,1*1*0,000
20,010,000
1*1,767,000
9,1*00,000
u »,509,000
11*5,1*81,000
9 ,3 2 6 ,0 0 0
2 ,8 7 6 ,0 0 0
3 6 ,9 0 1 ,0 0 0
1*7,289,000
1*1*.670.000

# 1 ,101,893,000

fi

TREASURY DEPARTMENT
Information Service

WASHINGTON, D .C

222

RELEASE M O R N I N G N E W S P A P E R S
Tuesday, M a y 1
1951.

-2675

The S e c r e t a r y of the T r e a s u r y a n n o u n c e d last e v e n i n g that the
tenders for $ 1 ^ 1 0 0 ^ 0 0 0 ^ 0 0 0 ^ or t h e r e a b o u t s 9 of 9 1 -d.ay T r e a s u r y "bills
to be dated. M a y 3 a nd to m a t u r e A u g u s t 2, I 9 5 I 3 w h i c h were o f f e r e d
on A p r i l 26, w e r e o p e n e d at the F e d e r a l R e s e r v e B a n k s on A p r i l 3 0 .
The d e t a i l s

of this

issue are as

follows:

T o t a l a p p l i e d for - $ 2 , 1 7 6 , 5 5 5 , 0 0 0
Total accepted
1,101,893,000

(includes $ 1 1 2 , 1 7 8 , 0 0 0
e n t e r e d on a n o n - c o m p e t i t i v e
b a sis and a c c e p t e d in full
at the a v e r a g e p r ice s h o w n
below)
E q u i v a l e n t rate of d i s c o u n t approx.
1.508$ p er a n n u m

■V
A v e r a g e p r ice

- 9 9 .6 19

Range

c o m p e t i t i v e bids:

of a c c e p t e d

( e x c e p t i n g one

t e nder of

$1 ,000,000 )
High-

- 9 9 * ^ 2 5 E q u i v a l e n t rate of d i s c o u n t approx.
1.484$ p e r a n n u m
- 9 9 . 6 1 7 E q u i v a l e n t rate of d i s c o u n t approx.
1.515$ p e n a n n u m

L o¥

(5 p e r c e n t of the a m o u n t bi d for at the l ow price was a c c e p t e d )
Federal R e s e r v e
District_______
Boston
New Y o r k
Philadelphia

T o tal
Applied
$

Cleveland
Richmond
Atlanta

Chicago
St. Louis
Minneapolis
Kansas C ity
Dallas

San Francisco
TOTAL

T o tal
______ A c c e p t e d

for

40,124,000

$

38,224,000

1 ,6 0 0 ,6 3 7 , 0 0 0

6 9 1 .4 4 0 . 0 0 0

39.095.000
56.412.000
1 2 .9 0 0 . 0 0 0
14.509.000
.228,491,000
1 5 .6 0 1 . 0 0 0
2 ,9 2 6 , 0 0 0
39.901.000
56.789.000
69.170.000

41.767.000
9.400.000
14.509.000
145.481.000
9 .3 2 6 . 0 0 0
2 .8 7 6 . 0 0 0
3 6 .9 0 1 . 0 0 0
4 7 .2 8 9 . 0 0 0
____ 4 4 ,6 7 0 , 0 0 0

$ 2 , 1 7 6 ,5 5 5 , 0 0 0

$ 1 , 1 0 1 ,8 9 3 , 0 0 0

0 O0

20,010,000

2

As a n e x a m p l e

of the c a m p a i g n b y these o r g a n i z a t i o n s

b r i n g the p a y r o l l s a vings p l a n to ’’M a i n Street, U.
Mr. F o l e y c i ted the case of Las Cruces, N e w M e x i c o .
the C h a m b e r of Com m e r c e

theirdtaking the lead,

to

S. A . n ,
With

local

organizations

s u c c e e d e d i n s i g n i n g u p 2 3 7 of the 253 employees

in Las Cruces

f or the p a y r o l l

of t h e i r 2 , 3 7 1 employees.

savings plan,

f or the b e n e f i t

As a r e s u l t the T r e a s u r y M i n u t e

M a n F l a g was p r e s e n t e d to La s Cruces a n d it w as d e s i g n a t e d
the f i r s t T r e a s u r y D e f e n s e B o n d F l a g C i t y since

the close

of the war.
Mr. F o l e y told the TJ. S. C h a m b e r that m a n y o t h e r cities
presently have

s i m i l a r c a m p a i g n s u n d e rway,

on b y l o cal v o l u n t e e r g r o u p s .

0O0

a l l b e i n g carried

9 Le'
/ -7
f

z

ljncfer S e c r e t a r y of the Treasury,

E d w a r d H. Foley,

today

p r e s e n t e d a T r e a s u r y M i n u t e M a n F l a g to the C h a m b e r of
v

C o m m e r c e of* the U n i t e d States for its c o o p e r a t i o n in the
c u r r e n t U n i t e d States D e f e n s e B o n d Campaign,
b r i n g i n g the P a y r o l l Savings

p a r t i c u l a r l y in

P l a n to "Main Street, U.

S.A."

In c o n j u n c t i o n w i t h t w e n t y - s i x o t h e r n a t i o n a l civic,
fraternal,

s e r vice a nd v e t e r a n o r g a n i z a t i o n s ,

t h r o u g h the 635 local c h a m b e r s of commerce,

and working

the n a t i o n a l

o r g a n i z a t i o n h a s u n d e r t a k e n to h e l p e n r o l l the 2 ,50 0 ,0 0 0
I

s m all b u s i n e s s e s
less

t h r o u g h o u t the country,

t h a n 100 emp l o y e e s ,

e a c h of w h i c h has

in the p a y r o l l s a vings plan.

In p r e s e n t i n g the f l a g to the B o a r d of D i r e c t o r s at the
Washington headquarters
Mr.

F o l e y said it was

of the C h a m b e r of C o m m e r c e

today,

the f i rst time these o r g a n i z a t i o n s h a d

c o n c e n t r a t e d on a s i ngle o b j e c t i v e s i m u l t a n e o u s l y .
The T r e a s u r y D e p a r t m e n t was w e l l a w a r e
s hip of these o r g a n i z a t i o n s was

that the m e m b e r ­

c o m p o s e d l a r g e l y of small

b u s i n e s s m e n a nd w o m e n w h o w o u l d w i l l i n g l y a c c e p t a nd d i s ­
c h a r g e a r e s p o n s i b i l i t y of c i t i z e n s h i p in a p r a c t i c a l
fashion,

he

said.

they would recognize
battle

'We turn e d to t h e m b e c a u s e we k n e w
the v a l u e of a u n i t e d f r o n t in the

to k e e p the n a t i o n e c o n o m i c a l l y sound a nd strong.

f l a g is the e v i d e n c e

that we w e r e n o t d i s a p p o i n t e d . "

This

TREASURY DEPARTMENT

225
release,
April 3 0 3 1 9 5 1 »

immediate

Monday,

S-2676

U n d e r S e c r e t a r y of the Treasury, E d v a r d H. Foley, t o day
presented a T r e a s u r y M i n u t e M a n F l a g to the C h a m b e r of Commerce
of the U n i t e d States for its c o o p e r a t i o n in the cu r r e n t U n i t e d
States D e f e n s e B o n d Campaign, p a r t i c u l a r l y in b r i n g i n g the
Payroll Savings P l a n to " M ain Street, U . S .A."
In c o n j u n c t i o n w i t h t w e n t y - s i x o t h e r n a t i o n a l civic, fraternal,
service and v e t e r a n organi z a t i o n s , a nd w o r k i n g t h r o u g h the 6 3 5
local chambers of commerce, the n a t i o n a l o r g a n i z a t i o n has u n d e r ­
taken to h e l p e n r o l l the 2 ,5 0 0 , 0 0 0 small b u s i n e s s e s t h r o u g h o u t
the country, e ach of w h i c h has less t h a n 100 e m p l oyees, in the
payroll savings plan.
In p r e s e n t i n g the fla g to the B o a r d of D i r e c t o r s at the
Washington h e a d q u a r t e r s of the C h a m b e r of C o m merce today, Mr. F o l e y
said it was the first time these o r g a n i z a t i o n s h a d c o n c e n t r a t e d
on a single o b j e c t i v e s i m u l t a n e o u s l y .
"The T r e a s u r y D e p a r t m e n t was w e l l a w are that the m e m b e r s h i p
of these o r g a n i z a t i o n s was c o m p o s e d l a r g e l y of small b u s i n e s s m e n
and w o men w ho w o u l d w i l l i n g l y a c c e p t a nd d i s c h a r g e a r e s p o n s i b i l i t y
of c itizenship in a p r a c t i c a l fashion," he said.
"We t u r n e d to
them b e c ause we k n e w the y w o u l d r e c o g n i z e the v a lue of a u n i t e d
front in the b a t t l e to k e e p the n a t i o n e c o n o m i c a l l y s o und and
strong.
This flag is the e v i d e n c e that we w ere not d i s a p p o i n t e d . "
As a n e x a m p l e of the c a m p a i g n b y these o r g a n i z a t i o n s to b r i n g
the payroll savings p l a n to "Main Street, U.S.A.", Mr. F o l e y
cited the case of Las Cruces, N e w Mexico.
W i t h the C h a m b e r of
Commerce there t a k i n g the lead, local o r g a n i z a t i o n s s u c c e e d e d in
signing up 237 of the 253 e m p l o y e r s in Las Cruces for the p a y r o l l
savings plan, for the b e n e f i t of t h eir 2 , 3 7 1 e m p l o y e e s .
As a
result the T r e a s u r y M i n u t e M a n F l a g was p r e s e n t e d to Las .Cruces
and it was d e s i g n a t e d the first T r e a s u r y D e f e n s e B o n d F l a g C i t y
since the close of the war.
Mr. F o l e y told the U. S. C h a m b e r that m a n y o t her cities
presently h a v e s i m i l a r ca m p a i g n s underway, all b e i n g c a r r i e d on
by local v o l u n t e e r g r o u p s .
0 O0

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) of the Internal Revenue Code,

as amended by Section 115 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. UlB, as amended, and this notice, prescribe
the terms of the Treasury bills and govern the conditions of their issue.
of the circular may be obtained from any Federal Reserve Bank or Branch.

Copies

-

2

-

unless the tenders are accompanied "by an express guaranty of p a r e n t b y 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 id.11 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 1200,000

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

May 10, 19$1
—

> in cash or other M e d i a t e l y avail-

....

able funds or in a like face amount of Treasury bills maturing
Cash and exchange tenders will receive equal treatment.

Mav 10,

Cash adjustments will be

made for differences between the par value of maturing bills accepted in exchange
and the issue price of the new bills.
The income derived from Treasury bills, whether interest or gain from the
sale or other disposition of the bills, shall not have any exemption, as such,
and loss from the sale or other disposition of Treasury bills shall not have any
special treatment, as such, under the Internal Revenue Code, or laws amendatory
or supplementary thereto.
gift

The bills shall be subject to estate, inheritance,

or other excise taxes, whether Federal or State, but shall be exempt from

all taxation now or hereafter Imposed on the principal or interest thereof by

J

TREASURY“'DEPARTMENT
Washington

XI

V

I’OR "r e l e a s e , m o r n i n g n e w s p a p e r s
Thursday, May 3, 1951__________

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

$ 1,100,000,000 , or thereabouts, of
--- ----------in exchange for Treasury bills maturing

91 -day Treasury bills, for cash and
May 10

to be issued on

1951

a discount basis under competitive and non-competitive bidding as hereinafter
provided.

The bills of this series will be dated

and

May 10« 1951

:Z£5c
will mature

August 9, 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,

$ 5 0 0 ,000, and $ 1 ,000,000 (maturity value).

Tenders will be received at Federal Reserve Banks and Branches up to the
Davlight Saving
closing hour, two o ’clock p.m., Eastern ¿da
sstiBeck time, Monday, May 7» 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 m i l
be supplied by Federal Reserve Banks or Branches on application therefor.
Others than banking institutions will not be permitted to submit tenders
except for their own account.

Tenders will be received without deposit from

incorporated banks and trust companies and from responsible and recognized
dealers in investment securities.

Tenders from others must be accompanied

by payment of 2 percent of the face amount of Treasury bills applied for,

TREASURY DEPARTMENT
Information Service

WASHINGTC

229
RELEASE MORNING NEWSPAPERS
Thursday, M a y 3, 1951.____

S-2 6 7 7

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
May 10, 1951, to be issued on a discount basis under comnetitive
and non-competitive bidding as hereinafter provided.
The bills
of this series will be dated May 10, 1951., and will mature
August 9 , 1951, when the face amount will be payable without
interest.
They will be issued in bearer form only, and in
denominations of $ 1 ,0 0 0 , $5 ,0 0 0 ,■$ 1 0 ,0 0 0 , $1 0 0 ,0 0 0 , $5 0 0 ,0 0 0 , and
$1 ,0 0 0 ,0 0 0 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches
up to the closing hour, two o'clock p.m., Eastern Daylight Saving
time, Monday, May 7 , 1951.
Tenders will not be received at the
Treasury Department, Washington.
Each tender must be for an even
multiple of $ 1 ,0 0 0 , and in the case of competitive tenders the
price offered must be expressed on the basis of 1 0 0 , with not more
than three decimals, e. g., 9 9 .9 2 5 . Fractions may not be used.
It is u r g e d that tenders be m a d e on the p r i n t e d forms a nd f o r w a r d e d
in the s p e c i a l e n v e l o p e s w h i c h w i l l be s u p p l i e d b y F e d e r a l R e s e r v e
Banks or 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 not be p e r m i t t e d to
submit tenders e x c e p t for their o w n a c c o u n t . T e n d e r s w i l l be
received 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 nks a nd trust
companies and f r o m r e s p o n s i b l e a nd r e c o g n i z e d d e a l e r s in i n v e s t ­
ment s e c u rities.
T e n ders fro m others m u s t be a c c o m p a n i e d b y
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 l l s a p p l i e d
for, unless the tenders are a c c o m p a n i e d b y a n ex p r e s s g u a r a n t y of
payment b y a n i n c o r p o r a t e d b a n k or trust company.

Immediately after the closing hour, tenders will be opened
at the Federal Reserve'Banks and Branches, following which public
announcement will be made by the Secretary of the Treasury of the
amount and price range of accepted bids . Those submitting tenders
will be advised of the acceptance or rejection thereof.
The
Secretary of the Treasury expressly reserves the right to accept
or reject any or all tenders, in whole or in part, and his action
in any such respect shall be final.
Subject to these reservations,
non-competitive tenders for $2 0 0 ,0 0 0 or less without stated price
fnom any one bidder will be accepted in full at the average price

2
(in three dec i m a l s ) of a c c e p t e d c o m p e t i t i v e ‘’bids . S e t t l e m e n t for
a c c e p t e d 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 M a y 10, 1951, in cash or
o t h e r i m m e d i a t e l y a v a i l a b l e funds or in a like face a m o u n t of
T r e a s u r y bills m a t u r i n g M a y 10, 1951.
Cash a nd e x c h a n g e tenders
w i l l r e c e i v e e q u a l treatment.
Cash a d j u s t m e d s w i l l be m a d e for
d i f f e r e n c e s b e t w e e n the p a r v a lue of m a t u r i n g bills a c c e p t e d in
e x c h a n g e a n d the issue p r ice of the n e w 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 b2 and 117 (a) (l) 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 cpmpanies) issued here­
under need include in his income tax return only the difference
between the price paid for such bills, whether on original issue
or on subsequent purchase, and the amount actually received either
upon sale or redemption at maturity during the taxable year for
which the return is made, as ordinary gain or loss.
T r e a s u r y D e p a r t m e n t C i r c u l a r N o . 4l8, as amended, and this
notice, p r e s c r i b e the terms of the- T r e a s u r y b i lls and g o v e r n the
c o n d i t i o n s of their issue.
Copies o f the c i r c u l a r m a y be obtained
fro m a n y F e d e r a l R e s e r v e B a n k or B r a nch.

0 O0

TREASURY DEPARTMENT
Inform ation S e r v ic e

Wa s h i n g t o n ,

d .c

.

230
IMMEDIATE RELEASE,
Wednesday, May 2, 1951

S— 2 6 7 8

The Treasury Department today made public
its regular report of sales of monetary gold to
foreign countries during the first quarter of
1951.
At the same time it announced that net U.S.
sales of monetary gold during the month of April
totaled $26 million.

According to preliminary

figures gross sales totaled $52 million and gross
purchases $26 million.

o 0 0

UNITED STATES SALES OF GOLD TO FOREIGN COUNTRIES
Jan uary 1 , 1950 - March 31 , 1951

231

(in m illio n s o f d o lla r s a t $35 per ounce)
ji
f
n
ij

Country

1
§
(
|

Argentina.* ............... ..
Belgian Congo...............
Belgium............ .
Canada...... ...............

j$

January—
March .
1951 2 /

-

8 .0
15.6
5.0

j
j
<
i

.

4.2

1 0 .0
13.4
-

2 .0
3.5

44*8

2 0 .0

8 4 .8

91.7

Greece..................... .
Indonesia...................
Mexico..................... .
Netherlands........ ........ .

14.4
30.0
118.2
79.8

6 .2
2 0 .0

Norway................ ......
Peru......................
Portugal................ .
Salvador«............. .

4.0
3«0
15.0

1 0 .0

6 .0

-

j

{
Saudi Arabia........... .
Sweden.......... ............
Switzerland.................
Switzerland— Bank for International Settlements • .• .0
Syria.......................
United Kingdom.
.... .
Uruguay....... ............
Vatican.....................
All other...... .......... .
TOTAL...... ....... .
...

1

$ 49.9

1 0 0 .0

Dominican Republic.........
Ecuador..................... .
Egypt.......................
France......... .............

— _

uu «--x.

1

3.0
55.0

j
Chile.......................
China (Nationalist)........ .
Colombia.... ...............
Denmark.................. .

*fMuuttlnpur-

i
t
i Calendar
j Year
1950 y

^
j

124,3
4.5

15.0

!

.8

3*3
23.0
38.0

15*0
15.0

65.2

2 4 .8

|
2 .2
j 1 ,0 2 0 .0
70.8
2*5

400*0
50*9

.1

.2

$1,797.3

$897.5

1
I

j
j

1
1

j
!

1* 8

-J

I
i
I

N ote: F ig u re s w i l l not n e c e s s a r ily add to t o t a l s because o f rounding*
1/ During 1950 th e U n ited S t a t e s purchased $68 m illio n worth o f monetary g o ld
rom fo r e ig n c o u n tr ie s , p lu s $4 m illio n worth o f g o ld ore imported fo r
r e fin in g .
2/ D uring the f i r s t q u arter o f 1951 the U n ited S t a t e s purchased $17 m illio n
worth o f monetary go ld from fo r e ig n c o u n tr ie s , p lu s $4 m illio n worth
o f g o ld ore im ported fo r re fin in g « ,

ç fis

2t
.BüEDIATE REIEASE,

Wednesday, May 2,

lf5l*

The Secretary of the Treasury today announced the breakdown, by
classes of investors, of exchanges of the 2-1/2 percent Treasury Bonds
ô of June 1$ and December 15» 1967-72, fo r 2-3/k percent Treasury Bonds,
Investment Series B-1975-8Q* dated A p ril 1» 1951*
The d e ta ils of the exchanges are as follow s!
Classes of Investors

Total Exchanges

Insurance companies « . * . ..................... $
Mutual savings banks . .............. . . . . .
Savings and loan associations, building and
loan associations, and cooperative^banks. » . .
Pension and retirement funds. . . . . . . . .
. «
Commercial and Industrial banks . . . . . . . . .
State and local governments, other than their
pension and retirement funds. ................
Individuals ..................................
Federal Reserve and Treasury Accounts . . . . . .
All others. ................... ...
*
TOTAL

3*338,227,000
1,252,055*000
12^,199*000
1,31*7,27k,000
171,782,000
5k9,995*000
182,91*1*000
5*583*802*000

525*363*000

$13,575*638,000

TREASURY DEPARTMENT

IMMEDIATE RELEASE

Wednesday, May 2, 1951.
The

S-2Ö79

S e c r e t a r y of the T r e a s u r y t o d a y a n n o u n c e d

bre a k d o w n ,

by classes

of investors,

2-1/2 p e r c e n t T r e a s u r y B o n d s
1 9 6 7 - 7 2 , for 2 - 3/4 p e r c e n t

Series B - 1 9 7 5 - 8 0 ,
The d e t a i l s

of e x c h a n g e s

of the

of June 15 an d D e c e m b e r

T r e a s u r y Bonds,

dated April

the

1,

Investment

1951.

of the e x c h a n g e s are as

C l a s s es of I n v e s t o r s

15,

follows:

Total Exchanges

Ins u r a n c e com p a n i e s ........................... 3 , 3 3 8 ,2 2 7 , 0 0 0
M u t u a l savings b a n k s ........... . . . . .
1,252,055*000
Savings a n d l o a n a s s o c i a t i o n s , b u i l d i n g
a nd l o a n a s s o c i a t i o n s , a nd c o o p e r a t i v e
b a n k s ............ ..........................
124,199,000P e n s i o n a n d r e t i r e m e n t f u n d s ................. 1 , 8 4 7 , 2 7 4 , 0 0 0
C o m m e r c i a l a nd i n d u s t r i a l banks . . . . . .
171,782,000
State a n d local gover n m e n t s , o t h e r tha n
their p e n s i o n a n d r e t i r e m e n t funds. . .
549,995,000
I n d i v i d u a l s ...................................
182,941,000
F e d e r a l R e s e r v e and T r e a s u r y A c c o u n t s . . 5 , 5 8 3 , 8 0 2 , 0 0 0
A ll o t h e r s ...................................
525,363,000
TOTAL

0 O0

$13,575,638,000

Hi

p

wmm ggg i m

| i I

,

v,

m m

IS I PII I

He b e c a m e a N a r c o t i c A g e n t in D e c e m b e r , 1940.
While serving a s
Navy
a / l i e u t e n a n t d u r i n g the war, he wa s engaged in i n t e l l i g e n c e w o r k in
seix

s e v e r a l E u r o p e a n cou n t r i e s .

TO:

INFORMATION SERVICE
4L

*

>3'

Mr* Winberg was born in Omaha, Nebraska on November 28, 1922*

From

1942 until 1945 he saw service in the Navy as an Aviation Radio Man, 2nd
Class*

Upon leaving the Navy, he entered the College of Pharmacy, Creighton

University, in Omaha, receiving his B* S* P* on June 2, 1949*

Four months

later, he became a Narcotic Agent*
Mr* Siragusa was born in New York City October 28, 1913*

He attended

■f
New York University, receiving his B* S* in 1933*
Mr* Pocoroba was born January 25, 1890 in Italy, where he received a
pre-medical education*
citizen*

He came to the United States, becoming a naturalized

He entered the Narcotics Service on January 3, 1928*

Mr* Pocoroba

has participated in some of the most important cases made by the Bureau since
that time*
r

and a gold-embossed certificate, signed by the Secretary of the Treasury,
accompany the medal*
The Meritorious Civilian Service Award is conferred upon those who per­
form their assigned tasks in such an exemplary manner as to set a record of
achievement, or who exercise unusual courage or competence in an emergency*
This honor is evidenced by a sterling silver lapel emblem and a silverembossed certificate signed by the Secretary of the Treasury*
BASIS FOR AWARDS
Anker M* Bangs, District Supervisor at Minneapolis for the Bureau of
Narcotics, was shot and fatally wounded while conducting a raid on an opium
smoking den in St* Paul, Minnesota, on September 24, I960*
an Agent who accompanied him, was seriously wounded.

Joseph H* Winberg,

This raid resulted in

the arrest of four violators, one of whom was wounded*
In the Fall of 1950, Benedict Pocoroba and Charles Siragusa were given
special assignments abroad —

Mr. Pocoroba to work with the U. S. Army

authorities in Trieste and officials in Italy, and Mr. Siragusa to make
undercover investigations in Turkey, Greece, Lebanon, Syria, Italy and Trieste,
to uncover the source of illicit heroin flowing into the United States. Through
the efforts of these two agents, numerous arrests were made in Trieste and the
Governments of Italy and Turkey have taken measures to control production and
movement of this drug, thus greatly reducing the amount available to illicit
traffic*
BIOGRAPHICAL SKETCHES
Mr* Bangs was born in Denmark in 1899 and came to the United States
about 1920*

He became a naturalized citizen in 1922*

as an agent was in 1926, in the San Francisco office*

His first appointment

IMMEDIATE RELEASE,

1

Thursday, May 3, 1951

S~

£

¿J

Secretary Snyder today presented honor awards to four employees of
the Bureau of Narcotics#

The Exceptional Civilian Service Award m s given

to Anker M. Bangs (posthumously), Benedict Pocoroba and Charles Siragusa,
and the Meritorious Civilian Service Award to Joseph S# Winberg#

George W*

Cunningham, Deputy Commissioner of Narcotics accepted the award on behalf
of Mr# Bangs* widow, Mrs# Louise Minnick Bangs, as well as the award to
Mr# Siragusa who was unable to be present because of a special assignment#
Witnessing the presentation were officials of the Treasury Department,
friends and co-workers of the employees being honored#
In making the awards, Secretary Snyder expressed his pride in the out­
standing achievements of these four Narcotic Agents and his pleasure in
presenting this lasting evidence of the Department*s appreciation of faith­
ful and courageous service#
The Exceptional Civilian Service Award is conferred upon employees of
the Treasury Department for the performance of duty so distinguished or
singularly outstanding as to be clearly exceptional, and for the demonstration
of outstanding courage in the face of personal danger while performing assigned
duties#

It is the highest award the Treasury Department can bestow# The award

is evidenced by a gold medal having on its obverse side the Great Seal of the
Treasury Department, and on the periphery the words###nFor Exceptional
Civilian Service#w

The reverse side shows the Main Treasury Building and

contains an applicable inscription and the name of the recipient#

A gold

lapel button, which is a smaller replica of the obverse side of the medal,

TREASURY DEPARTMENT
Information Service
I M M E D I A T E RELEASE,
Th ursday, M a y 3, 1 9 5 1 .

Wa s h i n g t o n ,

237
S-2680

S e c r e t a r y S n y d e r t o d a y p r e s e n t e d h o n o r a w ards to four
e m p loyees of the B u r e a u of N a r c o t i c s .
The E x c e p t i o n a l C i v i l i a n
Service A w a r d was g i v e n to A n k e r M. B a n g s ( p o s t u m o u s l y ),
B e n e d i c t P o c o r o b a a nd Charles Siragusa, a nd the M e r i t o r i o u s
C i v i l i a n Service A w a r d to J o s e p h S. Wi n b e r g .
George ¥.
Cunningham, D e p u t y C o m m i s s i o n e r of N a r c o t i c s , a c c e p t e d the a w a r d
on b e h a l f of Mr. B a n g s ’ widow, Mrs. L o u i s e M i n n i c k Bangs, as
well as the a w a r d to M r . S i r a g u s a w h o was u n able to be p r e s e n t
because of a sp e c i a l a s s i gnment.
W i t n e s s i n g the p r e s e n t a t i o n w ere off i c i a l s of the T r e a s u r y
Department, friends a nd co- w o r k e r s of the e m p l o y e e s b e i n g h o n o r e d
In m a k i n g the awards, S e c r e t a r y S n y d e r e x p r e s s e d his p r ide
in the o u t s t a n d i n g a c h i e v e m e n t s of these four N a r c o t i c A g e n t s
and his p l e a s u r e in p r e s e n t i n g this l a s t i n g e v i d e n c e of the
D e p a r t m e n t 's a p p r e c i a t i o n of f a i t h f u l a nd c o u r a g e o u s s e r v i c e .
The E x c e p t i o n a l C i v i l i a n Service A w a r d is c o n f e r r e d u p o n
employees of the T r e a s u r y D e p a r t m e n t for the p e r f o r m a n c e of
duty so d i s t i n g u i s h e d or s i n g u l a r l y o u t s t a n d i n g as to be c l e a r l y
exceptional, and for the d e m o n s t r a t i o n of o u t s t a n d i n g c o u rage in
the face of p e r s o n a l d a n g e r w h ile p e r f o r m i n g a s s i g n e d d„uties. It
is t h e ^ h i g h e s t a w a r d the T r e a s u r y D e p a r t m e n t c an bestow.
The
award is e v i d e n c e d b y a gold m e d a l h a v i n g on its o b v erse side
the Great Seal^ of the T r e a s u r y D e p a r t m e n t , a nd on the p e r i p h e r y
the w o r d s.... ?,F o r E x c e p t i o n a l C i v i l i a n Service."
The re v e r s e
side shows the M a i n T r e a s u r y B u i l d i n g and contains a n a p p l i c a b l e
i n s c r i p t i o n and the name of the r e c i pient,
A gold lapel button,
which is a s m a l l e r r e p l i c a of the ob v e r s e side of the medal, a nd
a g o l d - e m b o s s e d certificate, s i gned b y the S e c r e t a r y of the"
Treasury, a c c o m p a n y the medal.
The M e r i t o r i o u s C i v i l i a n S e r vice A w a r d is c o n f e r r e d u p o n
those wh o p e r f o r m their a s s i g n e d tasks in such a n e x e m p l a r y
manner as to set a r e c o r d of a c h i e v e m e n t , or w h o e x e r c i s e u n u s u a l
courage o r ^ c o m p e t e n c e in a n eme r g e n c y .
This h o n o r is e v i d e n c e d
by a s t e r l i n g s i lver lapel e m b l e m a nd a s i l v e r - e m b o s s e d c e r t i f i ­
cate s i g n e d by the S e c r e t a r y of the Treasury.

2

238

BA S I S FOR A W A R D S
A n k e r M. B a n g s , D i s t r i c t S u p e r v i s o r at M i n n e a p o l i s for the
B u r e a u of N a r c o t i c s , was shot a n d f a t a l l y w o u n d e d w h i l e c o n d u c t ­
ing a rai d on a n o p i u m smoking, d e n in St. Paul, M i n n esota, on
S e p t e m b e r 24, 1950.
J o s e p h H. Winberg, a n A g e n t who a c c o m p a n i e d
him, was s e r i o u s l y w o u n d e d .
This rai d r e s u l t e d i n the a r r e s t of
four v iolators, one of w h o m w as w o u nded.
In the P a l l of 1950, B e n e d i c t P o c o r o b a a nd C h a rles S i r a g u s a
were g i v e n s p ecial a s s i g n m e n t s a b r o a d -- Mr. P o c o r o b a to w o r k
w ith the U. S. A r m y a u t h o r i t i e s in T r i e s t e an d o f f i c i a l s in Italy,
and Mr. S i r a g u s a to m a k e u n d e r c o v e r i n v e s t i g a t i o n s in Turkey,
Greece, Lebanon, Syria, I t a l y a nd Trieste, to u n c o v e r the source
of i l l i c i t h e r o i n f l o w i n g into the U n i t e d S t a t e s . T h r o u g h the
efforts of these two agents, n u m e r o u s a r r e s t s w e r e m a d e in Tr i e s t e
and the G o v e r n m e n t s of I t a l y a nd T u r k e y hav e taken m e a s u r e s to
control p r o d u c t i o n and m o v e m e n t of this drug, thus g r e a t l y r e d u c ­
ing the a m o u n t a v a i l a b l e to i l l i c i t traffic.

BIOGRAPHICAL SKETCHES
Mr. B a n g s was b o r n in D e n m a r k in 1 8 9 9 a n d came to the U n i t e d
States a b o u t 1920.
He b e c a m e a n a t u r a l i z e d c i t i z e n in 1922.
His
first a p p o i n t m e n t as a n a g e n t was in 1 9 2 6 , in the S a n F r a n c i s c o
office.
Mr. U i n b e r g was
P rom 1942 u n t i l 1945
Radio Man, 2 n d C l ass.
College of Pharmacy,
his B. S. P. on June
Narcotic Agent.

b o r n in Omaha, N e b r a s k a on N o v e m b e r 28, 1922.
be saw service in the N a v y as a n A v i a t i o n
U p o n l e a v i n g the Navy, he e n t e r e d the
C r e i g h t o n U n i v e r s i t y , In Omaha, r e c e i v i n g
2, 1949.
P o u r m o n t h s later, he b e c a m e a

Mr. S i r a g u s a was b o r n in N e w Y o r k C i t y O c t o b e r 2-8, 1913.
He
attended N e w Y o r k U n i v e r s i t y , r e c e i v i n g his B. S. in 1933.
He
became a N a r c o t i c A g e n t in Dec e m b e r , 1940.. W h i l e s e r v i n g as a
Navy l i e u t e n a n t d u r i n g the war, he was e n g a g e d .in i n t e l l i g e n c e
work in s e v e r a l E u r o p e a n countries.
Mr. P o c o r o b a was b o r n J a n u a r y 25* 1 8 9 0 in Italy, w h e r e he
received a p r e - m e d i c a l e d u c ation.
He came to the U n i t e d States,
becoming a n a t u r a l i z e d citizen.
He e n t e r e d the N a r c o t i c s S e r v i c e
on J a n u a r y 3* 1928.
Mr. P o c o r o b a ha s p a r t i c i p a t e d in some of the
most i m p o r t a n t cases m a d e b y the B u r e a u since that time.

0O0

RELEASE n o m a n o

t e t e u «oy I I 1951.

"

v

. ____ '1 /
c¿ « ¿

The Secretary of the Treasury announced last evening that the toncara for
$1,100,000,000, or thereabout«, of 91~day Treasury bills to be dated May 10 and to
sature August 9, 1951, which were offered on May 5, were opened at the Federal
Reserve Banke on May 7.
the details of this Issue are as followsf
total applied for - $1 ,866,295,000
total accepted
- 1,100,004,000 (includes $113,253,000 entered on a
non-competitive basis and accepted In
full at the average price shown below)
Average price
~ 99*604/ Equivalent rate of discount approx, 1*566$ per annua
Bange of accepted competitive bides
High
Low

- 99*624 Equivalent rate of discount approx. 1.487$ per annum
- 99*600
»
» »
«
h
1.582$ «
»

»

*

(16 percent of the aaount bid for at the low price was accepted)
Federal Reserve
District

Total
Ap&Lled for

Total
Accepted

Boston
Hew York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St, Louis
Minneapolis
Kansas City
Dallas
San Francisco

$

$

Total

1,448,339,000
21,890,000
,18$,000
,370,000
,142,000
,700,000
,212,000
4,535,000
,512,000
38,223,000
76.307.000

6,890,000
757,052,000
6,880,000
23,185,000
12,370,000
,142,000
,100,000
,608,000
4,535,000
33,512,000
29,823,000
___ i ü . Æ > i , m

$1,866,295,000

$1,100,004,000

6,890,000

23
12
13
168
19
33

13
126
18

240

RELEASE M O R N I N G NEWS P A P E R S ,
Tuesday, M a y 8 , 1951. _ _ _ _ _

s-2681

The S e c r e t a r y of the T r e a s u r y a n n o u n c e d last e v e n i n g that the
tenders for $ 1 , 1 0 0 , 0 0 0 , 0 0 0 , or thereabouts, of 9 1 - d a y T r e a s u r y bills
to be d a t e d M a y 10 a nd to m a t u r e A u g u s t 9 , 1951, w h i c h were o f f e r e d
on M a y 3, were o p e n e d at the F e d e r a l R e s e r v e B a n k s on M a y 7 .
The d e t a i l s

of this

issue are as

follows:

T o t a l a p p l i e d for - $ 1 , 8 6 6 , 2 9 5 , 0 0 0
Total accepted
1,100,004,000

A v e r a g e p r ice

Range

of a c c e p t e d

(includes $ 1 1 3 , 2 5 3 , 0 0 0
e n t e r e d on a n o n - c o m p e t i t i v e
basis and a c c e p t e d in full
at the a v e r a g e p r i c e s h own
below)
- 9 9 * 6 0 4 / E q u i v a l e n t rate of d i s c o u n t approx.
1 .5 6 6 $ p e r a n n u m

c o m p e t i t i v e bids:

High

- 99.0 2 4 E q u i v a l e n t

Low

- 99.600 Equivalent

rate

of d i s c o u n t approx.

1.487$ pep annum
rate

of d i s c o u n t approx.

1 .5 8 2 $ p e r a n n u m

(l6 p e r c e n t of the a m o u n t b id for at the
Federal R e s e r v e
Dis t r i c t _______

Boston

Total
A p p l i e d for
$

New Y o r k
Philadephia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas C i t y
Dallas
San F r a n c i s c o

6 ,8 9 0 , 0 0 0
1,448,339,000
2 1 ,8 8 0 , 0 0 0

2 3 , 185,000
12.370.000
13.142.000
1 6 8 ,7 0 0 , 0 0 0
1 9 .2 1 2 . 0 0 0
4,535,000
3 3 ,5 1 2 , 0 0 0

TOTAL

low p r i c e was a c c e pted)
Total
___ A c c e pted
$

6 ,8 9 0 , 0 0 0
757.052.000
6 ,8 8 0 , 0 0 0
2 3 ,1 8 5 , 0 0 0
1 2 ,3 7 0 , 0 0 0
13.142.000

.
.

126 100.000
18 608.000
4,535,000

33 ,512,000

3 8 , 223,000
___ 7 6 , 3 0 7 , 0 0 0

2 9 , 823,000
67,907,000

$ 1 ,8 6 6 ,2 9 5 , 0 0 0

$1,100,004,000

0 O0

- 3 -

any State, or any of the possessions of the United States, or by any local tax­
ing authority.

For purposes of taxation the amount of discount at which

Treasury bills are originally sold by the United States shall be considered to
be interest.

Under Sections U2 and 117 (a) (1) of 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. 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.

V

Copies

-

2

-

unless the tenders are accompanied by an express guaranty of payment by an inV

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

|j

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 fran 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

May 17, 1951

PiT"

, in cash or other immediately avail-

able funds or in a like face amount of Treasury bills maturing
Cash and exchange tenders will receive ecju^.1 treatment.

May 17, 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.
The income derived from Treasury bills, whether interest or gain from the
sale or other disposition of the bills, shall not have any exemption, as such,
and loss from the sale or other disposition of Treasury bills shall not have any
special treatment, as such, under the Internal Revenue Code, or laws amendatory
or supplementary thereto.
gift

The bills shall be subject to estate, inheritance,

or other excise taxes, whether Federal or State, but shall be exempt from

all taxation now or hereafter imposed on the principal or interest thereof by

TRËA5URÏ D É P A R Â N T
Washington
• FOR'ÎŒLEASE, MORNING NEWSPAPERS,
Thursday, May 10, 1951_________.

jpcji

The Secretary of the Treasury, by this public notice, invites tenders for
91

$ 1,100.000,000 } or thereabouts, of

-day Treasury bills, for cash and

IMx.
in exchange for Treasury bills maturing

fjfoy 17. 19^1

, to be issued on

a discount basis under competitive and non-competitive bidding as hereinafter
provided.
will mature
interest.

The bills of this series will be dated
August 16. 1951
*****
They

May l7

n9!?l

»

and

, when the face amount will be payable without
_

Till be issued in bearer form only, and in denominations of

Tenders will be received at Federal Reserve Banks and Branches up to the
Daylight Saving
closing hour, two o ’clock p.m., Eastern /6togra3apdctime, Monday, May H i. 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, vith not more than three
decimals, e. g., 99.925.

Fractions may not be used.

It is urged that tenders

be made on the printed forms and forwarded in the special envelopes which vili
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 Treasury bills applied for,

T R E A S U R Y

DEPARTMENT

Information Service

WASHINGTON, D .C

RE L E A S E M O R N I N G N E F S P A P E R S
Thursday, M a y 10, 1 9 5 1 .

be

S-2682

__ __
as h e r e i n a f t e r provided'.'

The b i lls

of this series w i l l be

v Ì n A
9 5 \ f d Y i i 1 * a t u r e A u g u s t 16, 1951, w h e n the face
amount w i l l be p a y a b l e w i t h o u t interest.
T h e y w i l l be i s s u e d in
bearer f o r m only, a n d in d e n o m i n a t i o n s of iil. 0 0 0
¿ 5 000
tin non
$ 1 0 0 ,0 0 0 , $ 5 0 0 , 0 0 0 , an d $ 1 , 0 0 0 , 0 0 0 ( m a t u r i t y v a l i e ] . ’
’ ? 1 ° ’0 0 ° ’
,m 4. A ? ? d e r ? w d l 1 be r e c e i v e d at F e d e r a l R e s e r v e B a n k s a n d B r a n c h e s
up to the c l o s i n g hour, two o ' c l o c k p.m., S a s t e r n D a y l i g h t S a v i n s
time, Monday, M a y 14, 1 9 5 1 . T e n d e r s w i l l n o t be r e c e i v e d at the
Treasury D e p a r t m e n t , W a s h i n g t o n .
E a c h t e n d e r m u s t be for a n e v e n
of $ U ° ° 0 > a n d in the case of c o m p e t i t i v e t e n ders the p r i c e
offered m u s t be e x p r e s s e d o n the b a sis of 1 0 0 , w i t h n ot m o r e t h a n
three decimals, e. g., 99-925.
F r a c t i o n s m a y not be u s e d
It is
urged that t e n d e r s
be m a d e on the p r i n t e d forms and f o r w a r d e d in the
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
Branches on a p p l i c a t i o n therefor.
O t h e r s t h a n b a n k i n g . i n s t i t u t i o n s w i l l n o t be p e r m i t t e d to s u bmit
tenders e x c e p t for their o wn account.
T e n ders w i l l be r e c e i v e d w i t h ­
out d e p o s i t f r o m i n c o r p o r a t e d b a nks a n d t r ust c o m p a n i e s a n d from
responsible a n d r e c o g n i z e d d e a l e r s i n i n v e s t m e n t securities.
Te n d e r s
from others m u s t be a c c o m p a n i e d b y p a y m e n t of 2 p e r c e n t of the face
amount of T r e a s u r y bills a p p l i e d for, u n l e s s the t e n ders are

or'^trust^company? ®XpreSS Suaranty of Payment by an incorporated bank
the F e ! w = i a p e « 7 a f t n r ,th ® cdo^ l ng h o u r > tenders w i l l be o p e n e d at
the F e d e r a l R e s e r v e B a n k s a n d B r a n ches, f o l l o w i n g w h i c h p u b l i c
announcement w i l l be m a d e b y the S e c r e t a r y of the T r e a s u r y of the
F f i f 0f a ° ce P ted b l d s ; T h ose s u b m i t t i n g tenders
j.1 be a d v i s e d of the a c c e p t a n c e or r e j e c t i o n t h e r e o f
The
r p w £ a r y ° f t h ® T r e a s u r y e x p r e s s l y r e s e r v e s the r i g h t to a c c e p t or
such re = S e c t A b R l th n d ? ^ S ’-,i n

f
ln p a r t ’ a n d h is actj-°n i n a n y
Sut>Ject to these r e s e r v a t i o n s , noncompetitive tenders f or $ 2 0 0 , 0 0 0 or less w i t h o u t s t a t e d p r k e f r o m
&ny one b i d d e r w i l l be a c c e p t e d in full at the a v e r a g e p r ice (in

2
three decimals) of accepted competitive bids.
Settlement for accepte
tenders in accordance with the bids must be made or completed at
the Federal Reserve Bank on May 17, 1951, in cash or other
immediately available funds or in a like face amount of Treasury
bills maturing May 1 7 , 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 gc3,in
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 ny 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 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 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

- iy O fllW |
/

a c ?3

■PSfTi m m e d i a t e r e l e a s e ,
m y % i95i ,f________

v IheBureau 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, 19hl, as modified by the President's proclamation of April 13, 191*2
for the 12 months commencing May 29, 19$0, as follows;

Country
of
Origin

Wheat flour, semolina,
crushed or cracked
wheat
wheaH
Establishec :
Imports
Quota
t May 29, 1950,
! t O t f . 26. 19ft
(Pounds)”
(Pounds)
,

Established :
Imports
Quota
:May 29, 1950, to
i Apr. 28, 1951
(Bushels)
(Bushels)

.Canada
China
Hungary
Hong Kong
Japan
United Kingdom
Australia
Germany
Syria
New Zealand
Chile
Netherlands
Argentina
Italy
Cuba
France
Greece
Mexico
Panama
Uruguay
Poland and Danzig
Sweden
Yugoslavia
Norway
Canary Islands
Rumania
Guatemala
Brazil
Union of Soviet
Socialist Republics
Belgium

795,000
-

795,ooo
mm
**

-

100
100
*100
100
2,000
100
1,000
100
«a»

3,815,000
2h,00©

13,000
13,000
8,000
75,000
1,000

3,815,000
11,015

l80

5,000

”
n
wm
.. .
sa t
mm
mm

MM

mm
mm

mm

1,000
100
100
100
100

~

5,ooo
1,000
1,000
1,000
lh,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

122

2,295

1,186

JJ

—
mm
mm

-

OUU,UOQ
795,000

—
I*,000,000

3,829,831

TREASURY DEPARTMENT
Washington

246
IMMEDIATE RELEASE
Friday, May 11, 1951

S-2Ó83

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, 19kl, as modified by the President’s proclamation of April 13,
for the 12 months commencing May 29, 1950, as follows:
±

9

k 2

,

!
Wheat flour, semolina,
crushed or cracked'
wheat:,, and similar
wheat products

Whe at
Country
of
Origin
Established:
Imports
Quota
:May 29, 1950, to
Apr. 28, 1951
"(Bushels)
(Bushels)
Canada
795,000
China .
Hungary
Hong Kong
Japan
United Kingdom
100
Australia
Germany
100
Syria
100 '
New Zealand
Chile
Netherlands
100
Argentina
2,000
Italy
100
Cuba
«
France
1,000
~
Greece
Mexico
100
Panama
Uruguay
Poland and Danzig
Sweden
—
Yugoslavia
Norway ■
—
w
Canary Islands
Rumania
1,000
Guatemala
100
Brazil
100
Union of Soviet
Socialist Republics
100
Belgium
100
800,000
-

-

-

-

795,ooo
-

»
-

—
-

—
«a
•»
_
•
—
•Ml

—
MB
mf
Mqjl

—

4
7 ?5 ,o ó ó

Established:
Imports
Quota
; May 29, 1950/
to Apr. 28, 1951
(Pounds)
(Pounds)
•

3,815,000
2t,000
13,000
13,000
8,000
75,000
1,000
5 ,o o o

5,000
1,000
1,000
1*000
It,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
11,015
««
180
*4.-.
mi

122
•«*'

2,295
1,180
«pi.
m.

4j>
¿4
33
wm- .

mi

—

5,000,000

mm

5,829,ti31

STATUTORY DEBT LI MI TATI ON
AS OF

^ r il^ 3 0 ,
..

:

I

TREJfsell°Semc?T

95I

Washington, M e j ÿ ' 1951

.............. * ...............

.........

/|

... ......

Section 21 of Second Liberty Bond Act, as amended, provides that the face amount of ob ligations issued
under authority of that Act, and the face amount of ob ligation s guaranteed as to principal and interest by the
United states (except such guaranteed o b liga tion s 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., t i t le 31, sec. 757b), outstanding at
any one time. For purposes of th is section the current redemption value of any obligation issued on a discount
b asis which is redeemable prio r to maturity at the option of the holder shall be considered as it s face amount."
. The following table shows the face amount of ob ligation s outstanding and the face*amount which can s t i l l
be issued under th is lim itation:
Total face amount that may be outstanding at any one time
Outstanding
Obligations issued under Second Liberty Bond Act, as amended
1nterest-beari ng:
Treasury b i l l s
1 1 3 ,6 2 7 ,1 0 7 ,0 0 0
C e rtifica te s of indebtedness
Treasury notes
5 1 ,9 1 1 ,4 7 1 ,9 0 0 # 6 5 ,5 3 8 ,5 7 8 ,9 0 0
Bonds •
Treasu ry
8 0 ,4 8 9 ,5 5 0 ,8 0 0
Savings (current redemp. value)
5 7 ,6 5 1 ,7 7 2 ,5 0 6
Deposi tary
3 0 7 ,1 7 0 ,5 0 0
Armed Forces Leave
4 8 ,9 7 5 ,3 2 5
Investment series
1 4 ,4 9 7 ,6 7 4 ,0 0 0
1 5 2 ,9 9 5 ,1 4 3 ,1 3 1
Special Funds C e rtifica te s of indebtedness
Treasury notes
Total interest-bearing
Matured, interest-ceased

#275,000,000,000

«.

Bearing no interest:
War savings stamps
Excess p r o fits tax refund bonds
Special notes of the United States:
In te rn at'l Monetary Fund series
Total

1 9 .7 9 0 .4 1 5 .0 0 0
1 3 .7 9 9 .8 0 9 .0 0 0

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

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

Guaranteed o b liga tio n s (not held by Treasury):
Interest-bearing:
Debentures: F.H.a .
Demand obligations: C.C.C.
___
Matured, interest-ceased

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

1 8 ,6 2 1 ,2 3 6
1 0 1 ,8 3 4

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

Grand total outstanding
Balance face amount of obligations issuable under above authority
Reconcilement with statement of the Public Debt —

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

April

30, 1951

(Date)

Outstanding -

(Daily Statement of the United states Treasury, J ^ y 1 , 1 9 5 1 )
(Date)

Total gross public debt .............................. ......................................................
Guaranteed ob ligation s not owned by the Treasury
Total gross public debt and guaranteed o b liga tio n s
Deduct - other outstanding public debt ob ligation s not subject to debt lim itation

254, 727, 111,206
2 0 ,6 6 5 ,1 4 5

254,747,776,351

______ 690, 427.162
2 5 4 ,0 5 7 ,3 4 9 ,1 3 9

STATUTORY DEBT LIMITATION
AS OF APRIL 3d, 1951

May 10, 1951

248

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 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 b
i
l
l
s
.
. $13,627,107,000
Certificates of indebtedness...
Treasury notes................. 51,911,471,900 $65,538,578,900
Bonds Treasury,
80,489,550,8,00
Savings(current redemp.value) 57,651,772,506
Depositary,..... .
307,170,500
Armed Forces Leave...........
48,975,325
Investment series,........... 14,497,674,000 152,995,143,131
; Special Funds
Certificates of indebtedness. 19,790,415,000
Treasury notes.••••••••••••,• 13,799,809,000 33,590,224,000
Total interest-bearing.................,..* 252,123,946,031
Matured, interest-ceased............ .
579,023,247
Bearing no interest:
War savings stamps...............
48,299,366
Excess profits tax refund bonds.,
2,415,400
Special notes of the United States:
Internat’l Monetary Fund Series
1,283,000,000
1,333,714,766
Total.,.,............ ............................254,036,684,044
Guaranteed obligations (not held by Treasury):
Interest-bearinc:
Debentures: F,H.A*..............•
18,621,286
Demand obligations: C.C.C, ......____
101.,834
Matured, interest-ceased...,.,,........... ........

18,723,120
1,942,025
-20,665,145
Grand total outstanding...•••••••..••••••••,.•••••••••••••••.•••••..,254,057,349,189
Balance face amount of obligations issuable under above authority.... 20,942,650,811
Reconcilement with Statement of the Public Debt - April 30, 1951
(Daily Statement of the United States Treasury, May 1, 1951)
Outstanding Total gross public d
e
b
t
,
254,727,111,206
Guaranteed obligations not owned by the Treasury.....,...,.,,,,...,_____ 20,665,145
Total gross public debt and guaranteed o b l i g a t i o n s . .254,747,776,351
Deduct - other outstanding public debt obligations not
subject to debt limitation
690,427,162
254,057,349,189

S-2684

This is what the Service has been
doing for many years.

This is what

the Service is doing now.

And

this is what the Service intends to
Keep right on doing.

S

+

p

t

%

e

n d fed era 1.

This r eauire

constant v i i 1a nc e; it reau ire^
g

cooperat ion
pub 1ic-s o ir
3

1 1 resp

¡¡¡¡J |l|
r4
"'

•t*
I f l f c

o
a

T
l

T
t o

O w l »

i
I

eCK i

jUr pv>: y

**V
£;/

b1

yy a

p

9

H
q
c
l i d o

b e

n

g

p

c

0 I T I 6

O

1

0

of people
p

i n

1k s of 1if 0

en brought fo reefu1

nt ion of us all tha

bounder i
are extr

it reauires th

;

4*

4*

p

the tax evas ion pro Ku
i

iy W iG

l e

and its

ramifications are highly complex*
Confidence in our tax collection
system;: depends upon the fa irness and
effectiveness with which the revenue

40
ways to reduce the number of reports
and to cut the time and effort needed
for their preparation in order to
make

the

voluntary reporting system

easier and therefore more effective.
Let me close with this
observation;

it is my studied

opinion that the best answer to
organized crime, and to organized
crime's never-ending attempts to
dodge the tax laws,Plies in attaCKing
the problem on every front and at
every level of government -- local,

39

-

IH

-

Treasury reaIi?es

r d ing

preparation and
is it
W

ed the reporting

'ta in ?•roc

to a

p c
o
«

institution

of inconvent
û f1Êt

The

frslfe c

tion of the public servie

apor

reporting institutions sr*»

Cl v

noer
s o

staff are
ation on me? ns
&

S

IIf3

reoor

p

y

« p

Wm

111 I l i
r®£:v
& I5.
0

moer

p *
Ci

tei:

#'
y i

H 4
*>,
uc

peers have

1 t I revenue

cisfn SBf

c o li ect

t e " t Í : n t '■s K

f er

kj

y *?

cooperative astivi

C

?rvjce
?

a

0

V I Off

ì th repo r

Hf iis

arsre

t r a n s a c t i an

?fe¡¿

Î

mk

i Ss

¥% fife

M III

U? ^t#,W

A
•W3'

evaded income

t lik ü fi jeh Í1 ave been r e c o v e r e d
ri

£St

Duren
?*

n f
I

l eads o b t a i n e d
o i cucr

IÜ

i v\
If*

fe

H § v e r u è

from t h e s e re
§1 M
%r

.* ~

i o n s

a r e

***1 fv%

t

a means of producing additional
V

revenue, but also as a step toward
greater equity.

The Treasury could

not in good conscience stress the
importance of fairness in the
.

admin istrati on and enforcement of
the tax laws, without at the same
time urging every effort to
eliminate unfairness and
dtiscr im inat ion from those laws.
I want to scKnow Iedge, before
I close, the assistance which a

problems have to do with the
V f |V.."-. g |

curtailment of special privileges
rather than with criminal evasion.
Loopholes in the present income tax
statutes offer perfectly legal
opportun¡ties to a considerable
number of persons and corporations to
minimize their taxes on large amounts
of income, or even to escape without
maK ing any payment.
Action to close these
loopholes is important not only as

these suggestions had already
¡¡¡Ii|

been discussed in the consultations
between the Revenue Service and the
House Ways and Means Committee.
Certain new legislative proposals
of the Crime Committee are under
study by the Treasury and
recommendstions concerning them
will be transmitted in due time to
appropriate committees of the Congress
as the hearings on the new
legislation develop.
Some of our legislative

statements of assets and
liabilities from some taxpayers;
Action on these suggestions
would strengthen the hand of the
new Spec ia I Fraud Section in its
attaCK on the evasion methods of

the gamblers and racKeteers.
Proposals for new legislation
also were discussed in the final
report of the Senate Crime
Investigation Committee to which
I already have referred.

Some of

Suggestions for new
V

legislation helpful to the Revenue
Service in enforcing tax collections
are pending in the Ways and Means
Committee of the House of
Representatives.

These suggestions

deal with such matters as
lengthening of the statute of
limitations in certain cases, more
severe penalties for wilful failure
to file returns or Keep oroper booxs
and records, and requirement of

wss conveniently forgotten in his
V | :

income tax returns.
The bus operator filed amended
returns after our investigation was
begun.

But for some strange

reason, he still understated his
income by a very substantial amount
Eventually, his true income was
disclosed, which resulted in
additional assessments of taxes and
penalties of $170 thousand, plus a

establishments showed ban« balances
V

far lower than the balances that
appeared on the ban« records.
The matter was brought to the
attention of a Revenue agent and
soon, thereafter, an investigation
was under way.

After months of

carefully planned wotk , the details
of the brothers' financial
manipulations were pieced together,
with the ultimate result that the

In a chain of Midwest towns

three brothers did a general
mercantile business.
prospered —

They

but they failed

to pay the full amount of
their taxes due.

The proceeds of

sales in many cases never found
their way to the partnership booxs;
they went, instead, to ban«
accounts which the brothers
maintained as individuals.

And,

records Kept for the mercantile

Intel Iigence expert, and an outstandin
Revenue Service officer for more than
17 years, has been appointed head of
the Special Fraud Section.

This

centrally-controlled Sect ion will
bring to bear on the problem of the
profess ionaI criminal’s tax accounts
all the investigative skill which
the Revenue Service can muster,
The final report of the Senate
Crime Investigating Committee last
described the creation of the

25
State making certain suggestions to
follow up the work of the Kefauver
Committee investigation.
I have asked the Governors as a
public service to forward to the
Treasury any information obtained by
local investigators that might be
useful to the Internal Revenue Service
to combat evasion of. the Federal
income tax laws.
The Treasury, of course, has had
the benefit of cooperation of this
kind in the past.

But if we can have

greater and wider cooperation, I am

- 24

I must emphasize here that it is
not the prescribed function of the
Revenue Service to enforce the crimina
laws of the nation and to send
criminals to jail.

However,

in

executing its responsibiIities in
|
collecting the revenues the Revenue
Service frequently finds that in
seeking out the tax evader, the
criminal is. exposed to prosecution
for. other crimes.
Just before leaving Washington,
I wrote to the Governors of every

picked cases receive.
I took pleasure in publicly
commending the work of the Kefauver
Committee.

I hope that there will be

a tightening up of local law
enforcement throughout the country.
For State, county and municipal
officia Is necessariI y are the backbone
of the legal machinery we maintain for
the suppression of most of the crimes
in which gamblers and racketeers
figure.

had been recommended by the
Commissioner of Internal Revenue, and
instituted by the Department of
Justice, in recent years.

I doubt if

any of you would have recognized more
than one or two of the names, yet
the tax claims ran into the hundreds
of thousands and even millions of
dollars in many of the individual
cases.

It goes to show that the

effectiveness of income tax law
enforcement cannot be gauged by the
size of the headlines which a few

ITS

21

-

the supposed underworld bosses,
these second and third layer
characters present not only a tax
evasion problem but also a general
crime problem of very large proportions
During the Comm ittee /fear ings.
the Commissioner of Internal Revenue
presented to the Committee a few weeks
ago a thirteen page list of such
people.

In the list were

approximately 150 names, representative
of more than 1500 cases in which
criminal prosecution on tax charges

20
under-world characters It was not due
to lack of enforcement but to the
P

I

I

®

•i*

\ i w m'

^y(( > /

i

-

’ io.

difficulty in obtaining accurate
facts upon which to make deficiency
assessments under present tax laws. |
The problem, however, is not just
with the "big boys.*

The front-line

tax enforcement agents must give
careful attention to second and
third layers of professional criminals
of many fields who resort to Income
. 'V

tax evasion.

•' . .:V ' v ; . V. S

Far more numerous than

ers and racketeers.
ooperati ve as these
were, 1 hope no one was misled by
that publicity into thinking that
great effort is not made to collect
every dollar of tax due by this type
of character.

For here is an

important fact that must be pointed
out.

The internal Revenue Bureau

furn ished the Senate Crime Comm ittee
with over 8500 tax returns during the
course

the Hearings.

reflect the scope of front-line
enforcement work, you would be
astonished, I am sure, to see how
much ground the agents must cover.
As far as actual income tax

~iiu M e
evasion cases are concerned, t-hVse.

-

that receive the headlines are
usually those of the underworld’s
so-called "b ig boys,"

Much publicity

was given during the recent Senate
Committee p a rings* for instance,
to the income tax affairs of kinaoin

- 17
Commissioner of Internal Revenue,
V

the yield of additional assessments
for the fiscal year 1951 will be
•$l»9 billion.

And these have not

been extraordinary years, for similar
amounts were realized in additional
assessments for the fiscal years
1947, 1948 and 1949,
assessments,

Those additional

let me repeat, are the

results of front-line tax enforcement.
If you could be shown some of the
Revenue Service files which

And it ends only with determined
efforts to disclose and punish any
wi IfuI evaders.
Let me give you just a few
figures on what front-line
enforcement means to the Government
financially.

This work in the

fiscal year 1950 yielded added
assessments against taxpayers of a I I
classes amounting to SI.8 billion.
According to the estimate of the

requires almost half of the Revenue
Service's entire personnel.

This

type of checking of returns is
generally classified as "front-line
enforcement" work.
Front-line enforcement starts
with the spotting of returns which
appear to require further examination
It continues to the stage of expert
investigation of cases in which we
find ground for suspicion of fraud.

Federal revenue at an over-all cost
of only a little over 1/2 of \% of
the total collected.
that.

Just think of

Isn’t that a splendid record?

You wiI I better understand the
problems of the Revenue Service, I
think, when I tell you that collecting
the portion of the revenues in which
care Iessness, mi sunderstanding, or
dishonesty is apt to be involved

An overwhelming majority of
the income tax returns received
by the Revenue Service each year
are free from any dou-fet of
dishonesty or from any deliberate
cheating.

That mark is a tremendous

tribute to American spirit and
American character.

It is this

record which enables the Revenue
Service to collect each $100 of

confidence, ail wili be well.

If

the time ever came when they lost
confidence in it, disaster would
follow.

'

The Revenue Service has
enjoyed public confidence in the
past, ano enjoys it now.

\e may

look to the records of the Service
itself for evidence to support
this statement.

figure out their own assessments,
and to a really amaz ing .degree,
they pay what they owe without
any compulsion.
Naturally,

in the course of

this voluntary payment process,
people want to know that the system
is free from laxity, from favoritism,
from fraud.

So long as they consider

the system deserving of their

10

-

not tell the fuI I story.
He a II know that the Revenue

Service has a marked impact upon
public morale.

The honesty, fairness

and efficiency with which it does
"'

“®ia*3^eii3a!t r,i it,!,,

its work sets an examp Ie ftot on^yj
within the Government but also affects
the temper of national business.
As in no other country on earth,
the United States depends for the
major financial support of its
Federal Government on a voluntary
system of taxation.

Her citizens

the fidelity of Its employees.
The Revenue Service is by far
the largest of the various bureaus
of the Treasury Department.

It

presently has 55,500 employees.
This fiscal year, ending June 30,
it will collect taxes and other
revenues amounting to over $50 billion.
These figures alone should give
an impressive idea of the Bureau’s
important function.

But figures do

York **** it w ä s

c8S .,
•

„

f

to testify at any time to the
essential and over-a11 honesty
and competencei of its personnel.
Not long ago, to be sure, Ȥ
had to fire fiso Revenue Service
employees out in Californ1a, after
a lengthy and painstaking investigatio
But remember.

the Revenue Service

itself conducted the investigation
that indicated these wen had been
■■ , '

i |«|

s|4S1 SR I

.

i

g g »

unfaithful to their trust.

| i ■ ■.

And when,

a year or so ago, other employees

Si

1

5
this job of the Treasury.
I do not intend to discuss
today any of the determinations of
tax rates/ now under way in the
Congress, or to prognosticate what
the new tax rates wi I I be.

Rather,

I want to talk about other factors,
which have to do not only with the
revenue system's immediate impact
on our pocketbooks, but also
with its long-range effects
and consequences.

These factors

urgent in our life as a Nation,
because the financing of our whole
defense effort, as well as of the
Government's normally routine
responsibiIities, depends on the

j

fidelity with which this task is
performed.

And yet -- so successful hd

been this vital operation, that many
have taken for granted as simple and
ordinary all of the planning and
work and devotion that goes into

|

or opportunity in the broadest
sense of the word.
Today, I want to remind you
of an Important Treasury activity
In which you, in common with all
other Americans, have a direct and
vital interest,

I want to talk about

the Treasury task of collecting and
protecting the Federal revenues.
I cannot think of anything so

'Savings Bonds Program.
Governors,

Four

including your own

-

Governor Forrest Smith, joined
with me in the Municipal Auditorium
to help launch the 134t Savinas
W0
Bonds "Opportunity Drive”, with the
President of the United States
participating by radio from & S S ?
Washington.
event

for

It was an appropriate

Kansas City and Missouri

sponsorship, for this city and this
State certainly are natural homes

Mr. Chairman, members of the
.'.'V

|i

Missouri BanKers Association and

guests:
It is a reaI pleasure to return
to Missouri -- my adopted State -~
to meet with Missourians on such
an occasion as this.

Your invitation

was one which I was most hapoy to
accept.
My last visit to Kansas Ci ty,
a little more than two years ago,
was in connection with the Treasury's

The

f o l l o w i n g a d d r e s s by S e c r e t a r y S n y d e r b e f o r e

the A n n u a l C o n v e n t i o n of the M i s s o u r i B a n k e r s
A s s o c i a t i o n in the M u n i c i p a l Auditorium,
City,

Missouri,

11:15 a . m . C S T
1951,

Kansas

is s c h e d u l e d f or d e l i v e r y at

(1:15 p.m.EDT),

Wednesday,

and is for r e l e a s e at that time.

May 9 ,

293

TREASURY DEPARTMENT
Washington

The following address by Secretary Snyder
before the Annual Convention of the
Missouri Bankers Association in the
Municipal Auditorium, Kansas City, Missouri,
is scheduled for delivery at 11:15 a . m . CST
Tlrl5 p.m. EOT!, Wednesday, May 9* 1951,
and is for release at that t i m e .

Mr. Chairman, members of the Missouri Bankers Association
and guests:
It is a real pleasure to beturn to Missouri -- my adopted
State -- to meet with Missourians on such an occasion as this.
Your invitation was one which I was most happy to accept.
My last visit to Kansas City, a little more than two years
ago, was in connection with the Treasury's Savings Bonds Program.
Four Governors, including your own Governor Forrest Smith, joined
with me in the Municipal Auditorium to help launch the 1949
Savings Bonds "Opportunity Drive", with the President of the
United States participating by radio from Washington.
It was an
appropriate event for Kansas City and Missouri sponsorship, for
this city and this State certainly are natural homes of opportu­
nity in the broadest sense of the word.
Today, I w a n t .to-remind you of an important Treasury activity
in which you, in common with all other Americans, have a direct
and vital interest.
I want to talk about the Treasury task of
collecting and protecting the Federal revenues.
I cannot think
of anything so urgent in our life as a Nation, because the
financing of our whole defense effort, as well as of the
Government's normally routine responsibilities, depends on the
fidelity with which this task is performed.
And yet -- so
successful has been this vital operation, that many have taken
S-2 6 8 5

234
-

2

-

for g r a n t e d as simple and o r d i n a r y all of the p l a n n i n g a nd w o r k
and d e v o t i o n that goes into, this job of the Treasury.
I do n ot i n t e n d to di s c u s s today a n y of the d e t e r m i n a t i o n s
of tax rates n o w u n d e r w a y in the Congress, or
to p r o g n o s t i c a t e
what the n e w tax rates w i l l b e . Rather, I w ant to tal k about
other f a c t o r s , w h i c h h a v e to do not o n l y w i t h the r e v enue
s y s t e m ’s i m m e d i a t e i m pact on our p o c k e t b o o k s , but a l s o w i t h its
long-range e f f ects a nd c o n s e quences.
T h ese factors i n v olve the
system's b a s i c s o u ndness ana stability.
Let me give you, at the v e r y outset, m y e a r n e s t a s s u r a n c e
that the o p e r a t i o n s of the I n t e r n a l R e v e n u e Service are c o n d u c t e d
with e v e r y s a f e g u a r d that skill a nd i n t e g r i t y of m a n a g e m e n t can
devise.
D u r i n g m y five years as S e c r e t a r y of the Treasury, I
have g i v e n close p e r s o n a l a t t e n t i o n to the a f f a i r s of the R e v e n u e
Service.
I am r e a d y to t e s t i f y at a n y time to the e s s e n t i a l and
over-all h o n e s t y and c o m p e t e n c e of its per s o n n e l .
N o t long ago, to be sure,, we h a d to fire two R e v e n u e Service
employees out in C a l i fornia, a f t e r a l e n g t h y a nd p a i n s t a k i n g
investigation.
B u t remember, the R e v e n u e Se r v i c e i t s e l f c o n d u c t e d
the i n v e s t i g a t i o n that i n d i c a t e d these m e n h a d b e e n u n f a i t h f u l to
their trust.
A n d when, a y e a r or so ago, o t h e r e m p l o y e e s were
indicted in N e w Y o r k -- it was a g a i n on e v i d e n c e s u p p l i e d b y the
Service itself.
W h e n y o u - c o u n t up these and the f ew o t her cases we h a v e h a d
of d e p a r t u r e s by R e v e n u e Service p e o p l e from t h e i r p r e s c r i b e d
trusts: w h e n y o u r e f l e c t on the size of the Se r v i c e a n d the e x tent
of its p u b l i c obligations, y o u w i l l h a v e a r i ght to feel,, as I
•do, great p r ide in its g e n e r a l integrity, a nd w o n d e r at the
success w i t h w h i c h the S e r vice s u s tains the f i d e l i t y of its
employees.
The R e v e n u e Se r v i c e is b y far the la r g e s t of the v a r i o u s
bureaus of the T r e a s u r y D e p a r t m e n t . It p r e s e n t l y has 55,500
employees.
This f i scal year, e n d i n g June 30, it w i l l c o l l e c t taxes an d
other r e v e n u e s a m o u n t i n g to over $50 billion.
These figures alone s h o u l d give a n i m p r e s s i v e ide a of the
Bureau's i m p o r t a n t function.
B u t f i gures do n ot tell the full
story.
.

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- 3 -

Vo a ll k n o w that tho H o v o n u o Se r v i c e has a m a r k e d impact
upon p u b H e m o r a l e .
The honesty, fairness a nd e f f i c i e n c y w i t h
which it does its w o r k not o nly sets a n e x a m p l e w i t h i n the
G o v e rnment but a l s o a f f ects the t e m p e r of n a t i o n a l business.
As m
no o t h e r c o u n t r y on earth, the U n i t e d States d e p e n d s
for the m a j o r f i n a n c i a l s u p port of its F e d e r a l G o v e r n m e n t on a
v o l u n t a r y s y s t e m - o f taxation.
H e r c i t izens figure out their o wn
assessments, and to a r e a l l y a m a z i n g degree, the y p a y wha t the y
owe w i t h o u t a n y c ompulsion.
J
N a t u r a l l y , in the course of this v o l u n t a r y p a y m e n t process,
people w a n t to k n o w that the s y s t e m is free f r o m l a x i t v
from
favoritism, f r o m fraud.
So l o n g as t h e y c o n s i d e r the s y s t e m
d e s e r v i n g of t h eir confidence, a l l w i l l be well,
if the time
ever came w h e n t h e y lost c o n f i d e n c e in it, d i s a s t e r w o u l d follow.
The R e v e n u e S e r v i c e h as e n j o y e d p u b l i c c o n f i d e n c e in the
past, a nd enjoys it now.
We m a y l o o k to the r e c o r d s of the
Service i t s e l f for e v i d e n c e to s u p p o r t this statement.
A n o v e r v k e l m ing m a j o r i t y of the income tax r e t u r n s received
by the R e v e n u e S e r vice e a c h y e a r are free from a n y s u s p i c i o n of
dis h o n e s t y o r ^ f r o m a n y d e l i b e r a t e cheating.
T hat m a r k is a
tremendous tribute to A m e r i c a n spirit a n d A m e r i c a n character.
It
r e c o r d w h i c h e n a bles the R e v e n u e Se r v i c e to c o l l e c t e a c h
/ I ?
r e v e n u e at a n o v e r - a l l cost of o n l y a little over
1/2 of 1% of the total collected.
Just t h i n k of that.
Isn't
that a s p l e n d i d r e c ord?
.Y o u w i l l « b e t t e r u n d e r s t a n d the p r o b l e m s of the R e v e n u e
ervice, I think, w h e n I tell y o u that c o l l e c t i n g the p o r t i o n of
the re v e n u e s i n ‘w h i c h c a relessness, m i s u n d e r s t a n d i n g , or d i s ­
honesty is apt to be i n v o l v e d r e q u i r e s a l m o s t h a l f of the
Revenue S e r v i c e ' s enti r e p e r s onnel.
This type of c h e c k i n g of
pe urns is g e n e r a l l y c l a s s i f i e d as " f r o n t - l i n e e n f o r c e m e n t " work.
F r o n t - l i n e e n f o r c e m e n t starts w i t h the s p o t t i n g of- r e t urns
which a p p e a r to r e q uire f u r t h e r e x a m i n a t i o n .
It c o n t i n u e s to
the stage of e x p e r t i n v e s t i g a t i o n of cases in w h i c h we find
f ° P s u s p i c i o n of fraud.
A n d it ends o n l y w i t h d e t e r m i n e d
ettorts to d i s c l o s e a nd p u n i s h a n y w i l f u l evaders.

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-4

-

Let m e give y o u just a few figures on w h a t f r o n t - l i n e
e n f o r c e m e n t m e a n s to the G o v e r n m e n t f inancially.
This w o r k in
the fisc a l y e a r 1 9 5 0 y i e l d e d a d d e d a s s e s s m e n t s a g a i n s t t a x payers
of a ll classes a m o u n t i n g to $1.8 billion.
A c c o r d i n g to the
estimate of the 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 , the y i e l d of
a d d i t i o n a l a s s e s s m e n t s for the fisc a l y e a r 1 9 5 1 w i l l be $ 1 . 9
billion.
A n d these hav e not b e e n e x t r a o r d i n a r y y e a r s , for si m i l a r
amounts w ere r e a l i z e d in a d d i t i o n a l a s s e s s m e n t s for the fisc a l
years 1947, 1948 a nd 1 9 4 9 . Those a d d i t i o n a l a s s e s s m e n t s , let
me repeat, are the re s u l t s of f r o n t - l i n e tax e n f o r c e m e n t .
If y o u could be s h o w n some of the R e v e n u e S e r vice files w h i c h
reflect the scope of f r o n t - l i n e e n f o r c e m e n t work, y o u w o u l d be
astonished, I a m sure, to see h o w m u c h g r o u n d the a g e n t s m u s t
cover.
*

4

As far as a c t u a l income tax e v a s i o n cases are c o n c e r n e d
the ones that r e c e i v e the h e a d l i n e s are u s u a l l y those of the'
u n d e r w o r l d ’s s o - c a l l e d "big b o y s . ” M u c h p u b l i c i t y was g i v e n
during the r e c e n t Senate C o m m i t t e e h e a r i n g s , for instance, to the
income tax a f f a i r s of k i n g p i n g a m b l e r s a nd rack e t e e r s .
As h e l p f u l
and c o o p e r a t i v e as these h e a r i n g s were, I h o p e no one was m i s l e d
by that p u b l i c i t y into t h i n k i n g that g r eat e f f o r t is not m a d e to
collect e v e r y d o l l a r of tax due b y this type of c h a r a c t e r
For
here is a n i m p o r t a n t fact that m u s t be p o i n t e d out.
The i n t e r n a l
Revenue B u r e a u f u r n i s h e d the S e n a t e Crime C o m m i t t e e w i t h o ver
8,500 tax r e t u r n s d u r i n g the course of the h e a r i n g s .
Where
taxes were not c o l l e c t e d f r o m u n d e r - w o r l d c h a r a c t e r s it was not
due to l a c k of e n f o r c e m e n t but to the d i f f i c u l t y in o b t a i n i n g
accurate facts u o o n w h i c h to m a k e d e f i c i e n c y a s s e s s m e n t s u n d e r
present tax laws.
The problem, however, is not just w i t h the
big b o y s .
The fro n t - l i n e tax e n f o r c e m e n t agen t s m u s t give
careful a t t e n t i o n to second and third layers of p r o f e s s i o n a l
criminals of m a n y fields wh o r e s o r t to income tax evasion.
F ar
more n u m e r o u s than the s u p p o s e d u n d e r w o r l d bosses, these seco n d
and third l a yer c h a r a c t e r s p r e s e n t n ot o n l y a tax e v a s i o n p r o b l e m
out also a g e n e r a l crime p r o b l e m of v e r y large p r o p o r t i o n s .
D u r i n g the C o m m i t t e e hea r i n g s , the C o m m i s s i o n e r of I n t e r n a l
Revenue p r e s e n t e d to the C o m m i t t e e a few w e eks ago a t h i r t e e n
page list of such people.
In the list w ere a p p r o x i m a t e l y 1 5 0
names, r e p r e s e n t a t i v e of m o r e t han 1 , 5 0 0 cases in w h i c h c r i m i n a l
prosecution on tax charges h a d b e e n r e c o m m e n d e d b y the C o m m i s s i o n e r
ot I n t e r n a l Revenue, and i n s t i t u t e d b y the D e p a r t m e n t of J u s tice
in recent years.
I d o ubt if a n y of y o u w o u l d h a v e r e c o g n i z e d
more, t han one or two of the names, y et the tax. claims r a n into

237
5 the h u n d r e d s of t h o u sands a nd e v e n m i l l i o n s of d o l l a r s in m a n y
of the i n d i v i d u a l cases.
It goes to s how that the e f f e c t i v e n e s s
of income tax lav e n f o r c e m e n t cannot he g a u g e d b y the size of
the h e a d l i n e s w h i c h a f ew p i c k e d cases r e c e i v e .
I t o o k p l e a s u r e in p u b l i c l y c o m m e n d i n g the w o r k of the
K e f a u v e r C o mmittee.
I h o p e t h a t ' t h e r e w i l l be a t i g h t e n i n g up •
of local lav e n f o r c e m e n t t h r o u g h o u t the country.
F o r State,
county a nd m u n i c i p a l o f f i c i a l s n e c e s s a r i l y are the b a c k b o n e of
the legal m a c h i n e r y ve m a i n t a i n for the s u p p r e s s i o n of m o s t of
the crimes in w h i c h g a m blerd and r a c k e t e e r s f i g u r e .
I m u s t e m p h a s i z e her e that it is n ot the p r e s c r i b e d f u n c t i o n
of the R e v e n u e Service to en f o r c e the c r i m i n a l lavs of the n a t i o n
and to send cri m i n a l s to jail.
However, in e x e c u t i n g . i t s
r e s p o n sibilities in c o l l e c t i n g the revenues, the. R e v e n u e S e r vice
frequently finds that in s e e k i n g out the tax evader, the c r i m i n a l
is e x p o s e d to p r o s e c u t i o n for o t h e r c r i m e s .
Just b e f o r e l e a v i n g W a s h i n g t o n , I w r o t e to the G o v e r n o r s of
every State m a k i n g c e r t a i n s u g g e s t i o n s to f o l l o w up the w o r k ' o f
the K e f a u v e r C o m m i t t e e i n v e s t i g a t i o n .
I h a v e a s k e d the G o v e r n o r s as a p u b l i c service to f o r w a r d
to the T r e a s u r y a n y i n f o r m a t i o n o b t a i n e d b y local i n v e s t i g a t o r s
that m i g h t be u s e f u l to the I n t e r n a l R e v e n u e S e r v i c e to combat
evasion of the F e d e r a l income tax laws .
The Treasury, of course, has h a d the b e n e f i t of c o o p e r a t i o n
of this k i n d in the past.
B u t if we can h a v e g r e a t e r a nd w i d e r '
cooperation, I a m c e r t a i n that b o t h the T r e a s u r y a n d the States
will b e n e f i t in prop o r t i o n .
I a m sure that the G o v e r n o r s w i l l
do e v e r y t h i n g in their p o w e r in this direction.'
There is n o w b e i n g set up in the R e v e n u e S e r vice a S p e c i a l
Fraud S e c t i o n w h i c h w i l l give its w h o l e a t t e n t i o n to the g a m b l e r
and r a c k e t e e r e l e m e n t a m o n g tax evaders.
Brigadier General
John B. Dunlap, a r e s e r v e o f f i c e r of the 2 2 n d A r m o r e d D i v i s i o n
of the A c t i v e Reserves,, a d i s t i n g u i s h e d A r m y I n t e l l i g e n c e expert,
and an o u t s t a n d i n g R e v e n u e Service o f f i c e r for m o r e t h a n YJ
years, has b e e n a p p o i n t e d h e a d of the S p e c i a l Fraud. Section.
This c e n t r a l l y - c o n t r o l l e d S e c t i o n w i l l b r i n g to b e a r on the
problem of the p r o f e s s i o n a l c r i m i n a l ' s tax a c c o u n t s a l l the i n ­
vestigative skill w h i c h the R e v e n u e Service c an m u s ter.

-

6

-

The final r e p o r t of the Senate Crime I n v e s t i g a t i n g C o m mittee
last w e e k d e s c r i b e d the c r e a t i o n of the S p e c i a l F r a u d S e c t i o n as
"a m o s t e f f e c t i v e and u s e f u l s t e p ” to c o l l e c t taxes f r o m the
criminal e l e m e n t , a n d r e c o m m e n d e d that our a c t i o n be- s u p p o r t e d
with the n e c e s s a r y a p p r o p r i a t i o n s b y the Congress.
Let me give y o u a n e x a m p l e or two of the sort of w o r k our
special a g e n t s h a v e to do in r u n n i n g d o w n cases of f r a u d u l e n t
tax evasion.
In a c h ain of M i d w e s t towns three b r o t h e r s d i d a g e n e r a l
m e r c a n t i l e business.
They prospered —
b ut t hey f a i l e d to p a y
the full a m o u n t of t h eir taxes d u p . The p r o c e e d s of sales in
many cases n e v e r f o und t h eir w a y to the p a r t n e r s h i p books; they
went, instead, to b a n k a c c o u n t s w h i c h the brothers, m a i n t a i n e d as
individuals.
And, r e cords kept f or the m e r c a n t i l e e s t a b l i s h m e n t s
showed b a n k b a l a n c e s far l o wer t h a n the b a l a n c e s that a p p e a r e d on
the b a n k re c o r d s .
The m a t t e r was b r o u g h t to the a t t e n t i o n of a R e v e n u e a g e n t
and soo n
thereafter
a n i n v e s t i g a t i o n was u n d e r way.
After
months of c a r e f u l l y p l a n n e d work, the d e t a i l s of the b r o t h e r s 1
financial m a n i p u l a t i o n s w ere p i e c e d together, w i t h the u l t i m a t e
result that the three of t h e m wer e h e a v i l y f i n e d a n d w e r e a s s e s s e d
additional taxes a nd p e n a l t i e s of a l m o s t a q u a r t e r of a m i l l i o n
dollars.
There was a n o t h e r case w h i c h i n v o l v e d a 'Midwestern o p e r a t o r
of c e r t a i n bus lines w h o was far m o r e d i l i g e n t in c o l l e c t i n g
fares t h a n in r e m i t t i n g his F e d e r a l taxes.
R e v e n u e a g ents found
that his c o m p a n y ’s l u c r a t i v e i n come f rom a n u m b e r of sources
other t h a n fares was c o n v e n i e n t l y f o r g o t t e n in h i s i n c o m e tax
returns.
The bus o p e r a t o r filed a m e n d e d re t u r n s a f t e r our i n v e s t i g a t i o n
was begun.
B u t for some strange reason, he s t ill u n d e r s t a t e d h is
income b y a v e r y s u b s t a n t i a l amount.
E v e n t u a l l y , h is true i n c o m e
was disclosed, w h i c h r e s u l t e d in a d d i t i o n a l a s s e s s m e n t s of taxes
and p e n a l t i e s of $ 1 7 0 thousand, plus a h e a v y fine.
S u g g e s t i o n s for n e w l e g i s l a t i o n h e l p f u l to the R e v e n u e
Service in e n f o r c i n g tax c o l l e c t i o n s are p e n d i n g in the W a y s and
Means C o m m i t t e e of the H o u s e of R e p r e s e n t a t i v e s .
These sug­
gestions d e a l w i t h suc h m a t t e r s as l e n g t h e n i n g of the s t a tute of

limitations in c e r t a i n cases * m o r e severe p e n a l t i e s for w i l f u l
failure to file r e t urns or k e e p p r o p e r b o oks a n d records, a nd
requirement of s t a t e m e n t s of a s sets a n d l i a b i l i t i e s f rom some
taxpayers.
A c t i o n o n these s u g g e s t i o n s w o u l d s t r e n g t h e n the h a n d of the
new S p e c i a l F r a u d S e c t i o n in its a t t a c k on the e v a s i o n m e t h o d s
of the ga m b l e r s a n d r a c k eteers.
P r o p o s a l s for n e w l e g i s l a t i o n a l s o w ere d i s c u s s e d i n the
final r e p o r t of the Senate Crime I n v e s t i g a t i o n C o m m i t t e e to
which I a l r e a d y h a v e referred.
Some of these s u g g e s t i o n s h a d
already b e e n d i s c u s s e d i n the c o n s u l t a t i o n s b e t w e e n the R e v e n u e
Service a n d the H o u s e ‘W a y s a n d M e a n s Committee.
Certain new
legislative p r o p o s a l s of the Crime C o m m i t t e e are u n d e r s t u d y b y
the T r e a s u r y a nd r e c o m m e n d a t i o n s c o n c e r n i n g t h e m w i l l be
transmitted" in due time to a p p r o p r i a t e c o m m i t t e e s of the Congr e s s
as the h e a r i n g s on the n e w l e g i s l a t i o n develop.
Some of our l e g i s l a t i v e p r o b l e m s h a v e to do w i t h the
curtailment of s p e c i a l p r i v i l e g e s r a t h e r t h a n w i t h c r i m i n a l
evasion.
L o o p h o l e s in the p r e s e n t income tax st a t u t e s o f f e r
perfectly l e gal o p p o r t u n i t i e s to a c o n s i d e r a b l e n u m b e r of p e r s o n s
and c o r p o r a t i o n s to m i n i m i z e t h e i r taxes on large a m o u n t s of
income, or e v e n to e s cape w i t h o u t m a k i n g a n y pa y m e n t .
A c t i o n to close these loo p h o l e s is i m p o r t a n t not o n l y as
a means of p r o d u c i n g a d d i t i o n a l revenue, b ut a l s o as a step
toward g r e a t e r equity.
The T r e a s u r y c o u l d n o t in g ood c o n s c i e n c e
stress the i m p o r t a n c e of fa i r n e s s in the a d m i n i s t r a t i o n a nd
enforcement of the tax laws, w i t h o u t at the same time u r g i n g
every e f f o r t to e l i m i n a t e u n f a i r n e s s a n d d i s c r i m i n a t i o n f r o m
those l a w s .
I w a n t to a c k n o w l e d g e , b e f o r e I close, the a s s i s t a n c e w h i c h
&arge number, of b a n k e r s h a v e g i v e n the T r e a s u r y in its r e v e n u e
collection a n d p r o t e c t i o n tasks.
I r e f e r to the c o o p e r a t i v e
activity of b a n k e r s in s u p p l y i n g the R e v e n u e S e r v i c e w i t h r e p orts
of large a n d u n u s u a l c u r r e n c y t r a n s a c t i o n s .
The a m o u n t s of e v a d e d income tax w h i c h h a v e b e e n r e c o v e r e d
by the B u r e a u of I n t e r n a l R e v e n u e f r o m leads o b t a i n e d f r o m these
reports of c u r r e n c y t r a n s a c t i o n s are s u b s t a n t i a l .
The T r e a s u r y
realizes that the p r e p a r a t i o n a n d f o r w a r d i n g of c u r r e n c y t r a n s ­
action r e p o r t s ha s s u b j e c t e d the r e p o r t i n g i n s t i t u t i o n s to a
certain a m o u n t of i n c o n v e n i e n c e .
The Treasury, therefore, h as
a real a p p r e c i a t i o n of the p u b l i c service that the r e p o r t i n g
institutions are r e n d e r i n g .

300

|

-

8

-

M e m b e r s of m y staff are n o w e n g a g e d in c o n s u l t a t i o n on m e a n s
for s i m p l i f y i n g the r e p o r t i n g p r o c e d u r e . T h e y are s e e k i n g to
find w a y s to r e duce the n u m b e r of r e p o r t s a n d to cut the time
and e f f o r t n e e d e d for t h e i r p r e p a r a t i o n in order to m a k e the
v o l u n t a r y r e p o r t i n g s y s t e m e a s i e r a n d the r e f o r e m o r e e f f e c t i v e .
Let m e close w i t h this o bservation; it is m y s t u d i e d
o p i n i o n that the b e s t a n s w e r to o r g a n i z e d crime, an d to
o r g a n i z e d crime's n e v e r - e n d i n g a t t e m p t s to d o dge the tax laws,
lies in a t t a c k i n g the p r o b l e m on e v e r y front a n d at e v e r y level
of g o v e r n m e n t -- local, State, a n d federal.
This r e q u i r e s
constant vigilance; it r e q u i r e s c o o p e r a t i o n ; -it r e q u i r e s the
p u b l i c - s p i r i t e d b a c k i n g of p e o p l e in a l l r e s p e c t a b l e w a l k s of
life.
It h as b e e n b r o u g h t f o r c e f u l l y to the a t t e n t i o n of us al l
that the b o u n d a r i e s of the tax e v a s i o n p r o b l e m are e x t r e m e l y
wide a n d its r a m i f i c a t i o n s are h i g h l y complex.
C o n f i d e n c e in our tax c o l l e c t i o n s y s t e m d e p e n d s u p o n the
fairness an d e f f e c t i v e n e s s w i t h w h i c h the r e v e n u e
laws are
a d m i n i s t e r e d a n d enforced.
E s p e c i a l l y at a time like the present,
w h e n s a c r i f i c e s are b e i n g d e m a n d e d of e v e r y citizen, there can
be no r o o m for c h i s e l e r s a nd crooks w ho s eek f i n a n c i a l g a i n at
the e x p e n s e of honest, h a r d - w o r k i n g A m e r i c a n s .
I n the i n t e r e s t of fa i r n e s s a n d equity, e v e r y e f f o r t m u s t
be m a d e to see that a l l p e r s o n s b e a r t h e i r p r o p e r share of the
tax burden.
The I n t e r n a l R e v e n u e S e r v i c e at a l l times seeks to
effect this p r o p e r end.
This is w h a t the Se r v i c e ha s b e e n d o i n g
for m a n y years.
This is w h a t the S e r v i c e is d o i n g now.
And
this is w h a t the S e rvice i ntends to k e e p r i ght o n doing.

0O0

the United States in this
generation.

I Know that the people

of our country are aware of the
inescapable necessity of meeting
our national and individual
obligations.
them.

He have always met

And we have the stamina,

the self-control and the vision to
meet them now.

Thus it becomes even more
important for us to Iook to the
strengtheni

ng

of our own country

during a period when we are
fighting to build up the military,
economic and moral strength of all
free nations so that we will be
not alone in our defense effort.
We* must use every means to
strengthen ourselves so that we
|| ■a

'

1■

may continue to meet the tremendous
*
responsibi Iities that have come to

cannot remain so in a community of
siCK people.

The time has passed

when it is possible for one or two
nations to remain strong in a world
community of weaK and hungry ones.
Economic health cannot be confined
to a few sections of the globe.
Long ago we came to realize in this
country that economic illness in
any state weaKens the Union.

Now

we Know that the same principle
applies beyond pur borders.

but we have responded with something:
W

more effective.
our obligations.

We have lived up to
While the

Communists have talxed we have been
actively engaged in cementing
internationaI re Iationships with
free nations to enable them to join
with us in building up the economic
health and peace of the world.
Strengthening our neighbors in
the free areas of the world is a
sound investment.

A healthy man

:

element.

It is the element of good

a

faith -- one which you, as banxers,
Know to be of vital importance.
'

Our country, gentlemen, has Kept
faith with those

iKe

us,

count freedom of religion, freedom
of thought, freedom to govern one’s
self beyond price.
The Communist dictatorships
have distorted words until they
have no meaning.

They have used

those words as a weapon against us

Korea has so far averted World War
Three.

This council has made clear

that it will not permit aggression
to go unopposed.

It has decisively

shown that it does not intend to
allow armed conflict to spread if
’ '■ ,'W'

.

' ,■

any honorable means of preventing
such a tragedy can be found.
The ability of the United
States to produce material aid was
essential to these accomplishments.
However, there is another important

am

of attac K #

m

/ni/if#&y

conom i c^A

i

the imenace a1ft G inst Turxey
'
OH

t
f|

fY ,; |>

M e r ican aid 1
helped t e oeopIe o

Greece to overcome a Communist
attempt at revolution.
saved Berlin.

The airlift

Marsha I I Aid

strengthened Europe’s hope
yy

m

estern democracy.
at area, unde

Ü

nations c

e Atlantic Pact

uTr*>r»*nrT»griyg- to resist
ggr ess ton.

United Nations action in

a frier

¡can

in the world can
only by constant

A great responsibility rests on you
First, as American citizens living
in one of the most crucial periods
in the h istory of human freedom;
and second, as leaders in the
financial community ~~ a vital
sector of our free enterprise

s and unneceas
diversion of ma

ia Is.

You will

occasions, also
out to your

citi zens
ces of increased

savings which can be better us
our military demands can
met without curtailments elsev
urge that e

r\ r
w I

gi ve

i*#? i?™ di
w*

matters your most ser Îous attention

staKe.
Know that you will have many
opportunities, both on an
individual and a community basis,
to explain the necessity for greatly
increased taxes.

You will have

many opportunities, in the course
of your participetion in the
voluntary credit restriction
program, to ta Ik over with the
businessmen of your localities the
need for avoiding unnecessary

'aware of the requirements of sound
finance.

You are closely

associated with Key dove Iopments
in your own communities.

For

these reasons, you are in a better
position than any other group to
# :C:'

•'

exercise financial leadership.
You can perform a tremendous
national service -- right in your
o w n

home towns -- by mgK ing every

effort to further a clear
understanding of the issues at

savings bond promotion,

the primary

aim is to increase savings

in all

forms -- in mutual savings barms,
in commercial b a r ms ,
loan associations,

in savings and

in life insurance

and in Government securities.
important thing,
the present,

The

in a period Iixe

Is that each c i11 sen

spend I ess and save more.
is accomplished,

if

all types of

savings will benefit.
As b a n n e r s , you a r e

fully

this

v m

i®

more

I i 'k

z

a n

ion ere in

f

lw*#r

decent legislation, as you
orovides the orivi lese
holders of
t

O
f f* *t
w P'W

m u e the ir

*SP

rr
r

-‘.ftrai

ft S t m e

Government securities on even

A'
%3»

terms than prevailed
in

P " TV

C*.

;#v

time of

ma tur ity
to cash their bonds may retain

is H

4jgi 28 in ìV=
ln
#
*3a7SP.5
.
'
"1
▼É
“Éi*ir 1d .

But because we

are free. natio na 1 programs and
poi icîes cannot be effectîv 0
without Aho 1she arted cooper:11 ior
ano unite d effort.
A na t iona1 program for
ma inta in if^pr
fi

Éf

i4 €f w*

revenues.

^

f inane ig i hrit 1th

¡tjl requires
I
rV

n il V 0

ìphas ized, however

J3fc
«Hf-

■ \a

j

I n

Vt# -I f w>

h o

j
X

u p

t

»

$ ( f*

|i ffy

rudent

o ? ne tional finance must

supplemented by

ri vate

ay-ss-w 0**•íéo

fense no I icy

M

owever, must have nati
suppor

e decision to adhere'

to it must

our citi?ens

elves.
?

*

he pr ic § Iess
t

Nation,

:f ;

i iv I

t

IV i I

M

The men who founde

Nat ion

respone sb iIi ty
ons on

oeor ie as individuals,
Kfpt

It

z o v ernmentai

''ft

hav

♦e tn ihk our
system is

planning must
on

From here

deiense

expend itures

i II requ ire
a faster

un iess
increased by new tax legislation.
If at this crucial point we fail
to make provision for the future, a
Fic it will resu11 from
our
program.

To avoid this, the

decision must be made without del
to keep our payments on a current

activities are requiring smaller
outlays than had seemed probable
as we looked ahead Iast January.
Wi th respect to defense
payments, however,

I am told by

those responsible for admin istering
our mi Ii tary programs that the
reduction in expected outgo
during the current fiscal year is
largely the result of changes in
the timing of payments.
due to any reduction

It is not

in the size of

the.program to which our revenue

g%

represents in
situation.

a transi

It is due mainly to a
of mi lit

expend Îtures

than

some
#

reductions in

2,0

i

ft

tor civilian

programs
to economic conditions
Veterans

Administration and the

ity Credit Corporation
f

*

,mp Ie , administer

In

which are c Iose Iy responsive to
changes in economic conditions.

These

CX
buying in anticipation of shortages
or a tax rise.
t-si

Certainly, we can

e comfort

of tne situation,

in these aspects

♦

ano excessive

In S

Forv*
*

♦

Bri h

some of next year's bus ines
into this year
tly increased the

d

pressure on
c the price 1eve
ower rate of

(

-V

», * ^

ment

expenditures, as compared with
nt ic ibated

»“It

h

S

L

civ y g a 1so

rill

in

on that

W

4#

including the holdings of the
Federal Heserve System —
than III billion.

by more

Un f ortunateI y ,

the expected budget surplus for the
current fiscal year ending June 30,
will disappear quickly }h the period
immediately following the end of.
; ■'| | . ;; g I I I

this fiscal year.

^^' | n:' i?;.i;Ijm| | |

1

Therefore,

:€v

I

cannot emphasize too strong Iy the
need for continuing policies of
prudent finance as we move further
into the mobiIization period.

The

current budget surplus is temporary.

years,

ending June 30, r e c e i p t s ,

balance,

on

have m o r e than covered

expenditures*/

The s u r p l u s of revenues

over e x p e n d i t u r e s f o r th at e n t i r e
period,

in f a c t ,

$7 b i l l i o n .

i s expected to exceed

T h i s s u r p l u s and a

p a r t of the T r e a s u r y ' s wartime cash
b a l a n c e have been a p p l i e d to debt
reduction.

D u ri n g the p a s t f o u r

y e a r s a I one, we have reduced bank
h o l d i n g s of F e d e r a l s e c u r i t i e s -

policy for our defense effort serves
the double purpose of protecting our
liberty ana insuring our economy
against deter 1orating influences.
As you may Know, at now expect to
end the present fiscal year, closing
on June 30, with a budget surplus of
S3 blIMon»|

This means that we

shall be able togend this fiscal
year with the Government’s
finances in a relatively strong
position -- a position which is
reenforced by our postwar record

•••

li

O n e powerful

weapon with which

the H«e rle an people can hold the
line

i s a courageous revenue

program.

Such a revenue program

must be based on a d e t e r m i n a i ion
to pay f o r our defens e program
as i t o e v e i o p s .

i t t h national

ino i v i d u i IH n co m es s i p r e s e n t
I

levels,

it

-0m mm@.

i s only the p a r t of

wisdom and i n t e g r i t y f o r us. to

f a c e today.

Ae cannot c o n j u r e

away nor can we avoid them by
d i r e c t i n g our e f f o r t s at a s i
a s p e c t of the problem.
im

to combat i n f l a t i o n ,

i f * a r e

a la rg e

p a r t of the funds a v a i l a b l e f o r
pending must be kept t rom

ex ercisin g their
the p r i c e

l u i I f o r c e on

level

not j u s t

t h i s month or t h i s ye ar , but f o r
the

Il

I

ahe

-íM#'

effective

in i n d u c i n g people not

to spend u n w i s e l y ,

s# must p r o v i d e

the environment andv i n c e n t i ves
for

increased savings

by b u s i n e s s ,

by government, by i n d i v i d u a l
consumers, by every group in the
population.
The bare statement of t h i s
o b j e c t i v e r e v e a l s the tremendous
d ifficu ltie s
it.

in the path of a c h i e v i n g

But these d i f f i c u l t i e s a r e a

p a r t of the s i t u a t i o n which we

SEE

I 15-

c l e a r l y f o r e c a s t an i n c r e a s i n g amount
of spendable funds and a d w i n d l i n g
s u p p l y of c i v i l i a n

goods.

This

is

the co re of the i nf I at i onary problem.
It

i s the co r e of the s i t u a t i on

with which we s h a l l

have to

live

f o r the d u r a t i o n of the defense
perioo.
The emphasis,

therefore,

must

be p l a c e d p r i m a r i I y on measures
which wi l l

get to the r o o t of

ni a 11 0 r - - which wi I I b6

long-term programs i n t o o p e r a t i o n
b e f o r e the r e s t r i c t i o n s c l o s e

in.

Incomes p r e s e n t I y are high,
and wi l l

move h i g h e r with the

quickened pace of defense
production.
large - history.

L i q u i d s a v i n g s are

the l a r g e s t

in our

With the best of management

growing mi I i t a r y r e q u i r e m e n t s are
bound to s e v e r e l y r e s t r i c t -output of
c i v i l i a n consumer goods.

Our

p r e s e n t defense product i on scheduI es

upward pressure on

pr ice Ievei,

as i have a Iready
re su

. Is
9
* ***

Is no

S f!

SO 11

c

the orobI eh

there is
¿N i /

g

it in themselves
prices to rise.

roots of the situation are
far deeper.
to sp

They Iie in
tO/ use whatever

resources are avai table to buy up
wanted goods and service

•‘è*
%*» «

** ®

ë

taxes paid by others -- we shall find
it extremely difficult if not
impossible to have enough revenue
to meet our obIîgâtions.

And if,

because of our own selfish interests,
or lack of understand ing, or
through apathy, we do not meet
our individual respons ib iIit ies,
then we wasFI all suffer the

a is i IIus ion me tit of failure.
The second fact which must be
given full account, is that the

our obligations -- but only the

only partial Iy -through-* the credit
mechan ism.

These forces find other

outlets, and so the problem of
controlling them is necessarily
many-sided.

It is a problem that

requires economic action on many
fronts.
The first essential

in the battle

against inflation is that all of
our people have the will and the
determ mati on to combat it.

You

ana 1, our families, our. ne ighbors,

HBHI

that credit operations should
er t ic u Iar

at

tion.
«à

And it is

people should j

conclusion that credit con
measures are the simple and easy
eans of Keeping prices in line
estraint in the use of credi
is indeed an essential part of
an anti-Inf let ionary program.
Ît c

* Ä
jj|

But

ot do the job a Ione;

ecause the basic
h ich drive prices upward operate

j|i _

dur in
such

of economic strain,
that the

a

spot!i

is

6

turnea on the credit mechanism;
and particularly, on that part of
the credit mechanism represented
the commercial banks
In the months since Iast June,
particularly concerned
about rising prices.
aspect of
has been so

Because this

inflationary situât
. it is n attira

cannot do so without an
assured supply of credi t.
funds are
Ìons of

business world.

În

Ionger-term

rams. . And it

our

banking system, for the most part,
«■
that the necessary credit is made
ava itable.
In normal

times, the general
#

public

is apt to take good banking

service for granted.

It is only

-

6

~

which these pioneer banking
institutions -- along with those which
were formed later -- have played in
the economic advancement of Kansas.
The ramifications of our modern
economy are far removed from those
of the early days of our country.
.'

4

Today every city -- every town -every farm is dependent on a wide
network of commercial

transactions.

These transact ions must intermesh
and function smoothly at all times.

SI‘E

*S«F

¡s particularly eviaenced in th
efforts of you bankers to work
together for the benefit of the
as well as for your
institutions.

The Kansas Bankers

Association was one of
j

•

ve

■■

ear Iiest of its kind t
this country.

A number of the

anks which he Ip f r o u n d
state association in 1887
still

s or t h i s ig rr u

can all be proud

> i"S

first flood control
other developments already
such as

project

near Superior, which I understand
*

*

ill

i

f

IrrI

#■

49.000

of Kansas lana
spirit of
cu Iture
c

ear Ii est

try in

as from the

of your history.
#

$

spirit of

the first Kansas settlements,
farming,

industry and transportâtion

have moved forward together in a
record of progress which is a source
of pride to all of us.
I am to I

athat in June you a

dedicating the first storage dam in
your state -- which will result in
bringing irrigation to 10,000 acres
and improving the product iv ity of
present Iy tilled land.

11 is an

important step forward, just as was

» £

of energy and s

gth of the

m Id

Kansas in

tern area

particular is out in front as one of
progressive states in the Un ion.
oil, clima
Iocat ion

the natural attractions

drew

pioneers into

this terri
and Ii

gic

it took faith,
and hard work to

full use of the resources wh
pioneers found.

Since

oays of

v..'

9$>S

It is an honor to address this

6gather ina of members of
s Association
same time,

it is a genuine pleasure

to come among one's neighbors.
many of my
know,

I

As

ds in the audience
born a little di stance

in Arkansas and la
in Missouri

o
w A
w

home among Kansans

t h i n g s that fme
a returning neighbor is the sense

TREASURY DEPARTMENT
Washington

The following address by Secretary Snyder before
the annual convention of the Kansas Bankers Asso­
ciation at the Little Theater, Kansas City, Mo*,
la_scheduled^ for delivery_at_3:00 p.nu CST
Thursday, May 10,1951 ."and is Tor ïëlëase T T
that time•
---- ------

FISCAL AFFAIRS IN NATIONAL DEFENSE

348
TREASURY DEPARTMENT
Washington

The f o l l o w i n g ad d r e s s b y S e c r e t a r y S n y d e r
b e f o r e the a n n u a l c o n v e n t i o n of the K a n s a s
B a n k e r s A s s o c i a t i o n at the L i ttle Theater,
K a n s a s City, M i s s ouri, is s c h e d u l e d for
d e l i v e r y at 3:00 P . m ., C S T , T h u r sday;
M a y To, 1951, aiid is “for r e l e a s e at
that t i m e .
— —
«

F I S C A L A F F A I R S IN N A T I O N A L D E F E N S E

It is a n h o n o r to a d d r e s s this g a t h e r i n g of m e m b e r s of the
Kansas B a n k e r s Association.. And, at the same time, it is a
genuine p l e a s u r e to come a m o n g o n e fs n e i g h b o r s . As m a n y of m y
friends in the auo.ience know, I was b o r n a little d i s t a n c e a w a y
m A r k a n s a s a nd later lived m M i s s o u r i . So I do feel at h o m e
among K a n s a n s .
One of the things that imp r e s s e s a r e t u r n i n g n e i g h b o r is
the sense of e n e r g y an d s t r e n g t h of the m i d - w e s t e r n area.
Kansas
in p a r t i c u l a r is out in front as one of the p r o g r e s s i v e states in
the U n i o n .
Soil, climate, a nd s t r a t e g i c l o c a t i o n were the n a t u r a l
tions w h i c n d r e w the e a r l y p i o n e e r s into this territorv.
But it t o o k faith, and i n g e n u i t y a n d h a r d w o r k to m a k e full use
of the r e s o u r c e s w h i c h the p i o n e e r s found.
Since the days of the
first K a n s a s settlements, farming, i n d u s t r y an d t r a n s p o r t a t i o n
have m o v e d f o r w a r d , t o g e t h e r in a r e c o r d of p r o g r e s s w h i c h is a
source of p r i d e to a ll of us.
^
told that in June y o u are d e d i c a t i n g the first s t orage
dam in y o u r state -- w h i c h w i l l r e s u l t in b r i n g i n g i r r i g a t i o n to
a c res and i m p r o v i n g the p r o d u c t i v i t y of p r e s e n t l y tilled
land.
It is a n i m p o r t a n t step forward, just as was the c o m ­
pletion t h r e e . y e a r s ago of y o u r first flood c o n t r o l dam.
These
and o t h e r d e v e l o p m e n t s a l r e a d y p r o g r a m m e d -« such as the great

10,000

S-2686

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2
B o s t w i c k p r o j e c t n e a r Superior, w h i c h I u n d e r s t a n d w i l l ir r i g a t e
49,000 acres of K a n s a s land -- are t y p i c a l of the spirit of p r o ­
gress w h i c h has c h a r a c t e r i z e d b o t h a g r i c u l t u r e and i n d u s t r y in
Kansas fro m the e a r l i e s t days of you r h i s tory.
I hat same spirit of p r o g r e s s is p a r t i c u l a r l y e v i d e n c e d in
the e f f orts of y o u b a n k e r s to w o r k t o g e t h e r for the b e n e f i t of
the State, a s ^ w e l l as for y o u r o wn i n s t i t u t i o n s .
The K a n s a s
Bankers A s s o c i a t i o n was one of the v e r y e a r l i e s t of its k i n d to
be f o rmed in this country.
A n u m b e r of the b a nks w h i c h h e l p e d
found y o u r state a s s o c i a t i o n in 1 8 8 7 are still m e m b e r s of this
group.
Y o u can a ll be p r o u d of the part w h i c h these p i o n e e r
ba n k i n g i n s t i t u t i o n s
a l o n g w i t h those w h i c h w e r e form e d
later -- h a v e p l a y e d in the ec o n o m i c a d v a n c e m e n t of K a nsas.
The r a m i f i c a t i o n s of our m o d e r n e c o n o m y are far r e m o v e d from
those of the e a r l y days of our country.
T o d a y e v e r y cit y -every t own -- e v e r y farm is d e p e n d e n t on a wid e n e t w o r k of
commercial tr a n s a c t i o n s .
These t r a n s a c t i o n s m u s t i n t e r m e s h and
function s m o o t h l y at all times.
A n d the y cannot do so w i t h o u t a n
assured s u p p l y of credit.
B o r r o w e d funds are v i t a l in the dayto-day o p e r a t i o n s of the b u s i n e s s world, as w e l l as in its
l o n g er-term p r o g rams.
A n d it-is t h r o u g h our b a n k i n g system, for
bhe m o s t part, that the n e c e s s a r y credit is m a d e a vailable.
In n o r m a l times, t h e ' g e n e r a l p u b l i c is apt to take good
banking service for granted.
It is o n l y d u r i n g p e r i o d s of
economic strain, such as the p r e s e n t one, that the s p o t l i g h t of
national a t t e n t i o n is turne d on the credit m e c h a n i s m ' a nd
particularly, on that part of the credit m e c h a n i s m r e p r e s e n t e d
by the c o m m e r c i a l b a n k s .
In the m o n t h s since last June, we h a v e b e e n p a r t i c u l a r l y
concerned a b o u t r i s i n g prices.
B e c a u s e this a s p e c t of the
i n f l a t i o n a r y s i t u a t i o n has b e e n so evident, it is n a t u r a l that
credit o p e r a t i o n s s h ould d r a w p a r t i c u l a r a t t e n t i o n .
A n d it is
natural that m a n y p e o p l e sh ou l d jump to the c o n c l u s i o n that
credit c o n t r o l m e a s u r e s are -the simple a nd e a s y m e a n s of k e e p i n g
prices in line;
R e s t r a i n t in the use of credit is i n d e e d a n e s s e n t i a l p a r t
of a n a n t i - i n f l a t i o n a r y program.
B u t it cannot do the job
a l o n e ; for one reason, b e c a u s e the b a sic forces w h i c h drive'
prices u p w a r d o p e rate onl y p a r t i a l l y t h r o u g h the cred i t m e c h a n i s m
ihese forces find o t her outlets, a nd so the p r o b l e m of c o n t r o l l i n g
them is n e c e s s a r i l y m a n y - s i d e d .
It is a p r o b l e m that r e q u i r e s
economic a c t i o n on m a n y f r o n t s .

The first e s s e n t i a l in the b a t t l e a g a i n s t i n f l a t i o n is that
all of our p e o p l e hav e the w i l l a n d the d e t e r m i n a t i o n to combat
it.
Y o u an d I, our families, our n e i g hbors, m u s t f u l l y a c c e p t
our i n d i v i d u a l r e s p o n s i b i l i t y .
It is one thing, as a n individual,
to w a n t to b r i n g p r i c e s down.
It is a n o t h e r t h i n g to be w i l l i n g
to p l a y a pa r t in the process.
If e a c h of us w a n t s p r i c e s k ept
down -- b ut o nly the p r i c e s c h a r g e d b y others -r- the n p r i c e s w i l l
for a c e r t a i n t y go up.
If e a c h of us w a n t s i n c r e a s e d t a x a t i o n
to m e e t our o b l i g a t i o n s
b ut o n l y the taxes p a i d b y others -we shall find it e x t r e m e l y d i f f i c u l t if not i m p o s s i b l e to hav e
enough re v e n u e to m e e t our o b l i g ations.
A nd if, b e c a u s e of our
own s e l f i s h interests, or lac k of un d e r s t a n d i n g , or t h r o u g h
apathy, we do not m e e t our i n d i v i d u a l r e s p o n s i b i l i t i e s , t hen we
shall a ll s u ffer the d i s i l l u s i o n m e n t of failure.
The s e cond fact w h i c h m u s t be g i v e n full a c c o u n t is that the
upward p r e s s u r e on the price level, as I h a v e a l r e a d y emphasized,
is the r e s u l t of m a n y forces; there is n o ' s i n g l e s o l u t i o n of, the
problem -- a nd there is no e a s y o n e .
M o n e y and credit in t h e m s e l v e s do no t cause p r i c e s to rise.
The roots of the s i t u a t i o n are found far deeper.
T h e y lie in the
urge to spend —
to use w h a t e v e r r e s o u r c e s are a v a i l a b l e to b u y
up w a n t e d goods and services, to get l o n g - t e r m p r o g r a m s into
operation b e f o r e the r e s t r i c t i o n s close in..
Incomes p r e s e n t l y are high, a nd w i l l m o v e h i g h e r w i t h the
quickened pac e of d e f e n s e p r o d u c t i o n .
L i q u i d savings are
large -- the l a r gest in our h i s tory.
W i t h the b e s t of' m a n a g e m e n t ,
growing m i l i t a r y r e q u i r e m e n t s are b o u n d to s e v e r e l y r e s t r i c t
output of c i v i l i a n c o n s u m e r g o o d s . Our p r e s e n t d e f e n s e p r o ­
duction s c h e d u l e s c l e a r l y f o r e c a s t a n i n c r e a s i n g a m o u n t of
spendable funds and a d w i n d l i n g s u p p l y of c i v i l i a n goods.
This
is the core of the i n f l a t i o n a r y problem.
It is the core of the
situation w i t h w h i c h we shall h a v e to live for the d u r a t i o n of
the d e f e n s e period.
The emphasis, therefore, m u s t be p l a c e d p r i m a r i l y on m e a s u r e s
which w i l l get to the root of the m a t t e r -- w h i c h w i l l be
effective in i n d u c i n g p e o p l e not to spend u n w isely.
We m u s t
provide the e n v i r o n m e n t and i n c e n t i v e s for i n c r e a s e d savings -by business, b y government, b y i n d i v i d u a l consumers, b y e v e r y
group in the p o p u l a t i o n .

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%

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The bar e sta t e m e n t of this o b j e c t i v e r e v e a l s the tre m e n d o u s
d i f f i c u l t i e s in the path of a c h i e v i n g it.
B u t these d i f f i ­
culties are a part of the s i t u a t i o n w h i c h we face today.
We
cannot c o n jure the m a w a y n or can we a v o i d t hem by' d i r e c t i n g our
efforts at a single a s p e c t of the problem.
If we are to combat
..inflation, a large p art of the funds a v a i l a b l e for s p e n d i n g m u s t
be kept f rom e x e r c i s i n g the ir full force on the p r i c e l e vel -not just this m o n t h or this year, but for the long p u l l ahead.
One p o w e r f u l w e a p o n w i t h w h i c h -the A m e r i c a n p e o p l e can h o l d
the line is a c o u r a g e o u s r e v enue program.
S u c h a re v e n u e p r o ­
gram m u s t be b a s e d on a d e t e r m i n a t i o n to p a y f o r , o u r d e f e n s e
program as it develops.
W i t h n a t i o n a l a n d i n d i v i d u a l incomes
at p r e s e n t levels, it is o n l y the p art of w i s d o m an d i n t e g r i t y
for us to p a y the p r ice of d e f e n s e out of c u r rent taxes.
For,
a p a y - a s - w e - g o p o l i c y for our d e f e n s e e f f o r t serves t h e , d o u b l e
purpose of p r o t e c t i n g our l i b e r t y and i n s u r i n g our e c o n o m y
against d e t e r i o r a t i n g influences.
As y o u m a y know, we n o w e x p e c t to end the p r e s e n t f i scal
year, c l o s i n g on. June 3 0 , w i t h a b u d g e t s u r p l u s ' o f $3 billion.
This m e a n s that we shall be able to end this f i s c a l y e a r w i t h
the G o v e r n m e n t 's f i n a n c e s in a r e l a t i v e l y s t r o n g p o s i t i o n -- a
p o s ition w h i c h is r e e n f o r c e d b y our p o s t w a r r e c o r d as a w h o l e .
For, d u r i n g the p a s t five f i scal years, e n d i n g June 30,
receipts, on balance, h a v e m o r e t han c o v ered e x p e n d i t u r e s .
The
surplus of r e v e n u e s over e x p e n d i t u r e s for that e n t i r e period,
in fact, is e x p e c t e d to e x c e e d $7 billion.
This surplus a n d a
part of the T r e a s u r y ' s w a r t i m e cash b a l a n c e h a v e b e e n a p p l i e d to
debt reduction.
D u r i n g the pas t four years alone, we h a v e
reduced b a n k h o l d i n g s of F e d e r a l s e c u r i t i e s - - i n c l u d i n g the
holdings of the F e d e r a l R e s e r v e S y s t e m -- b y m o r e tha n $11 billion.
Unfortunately, the e x p e c t e d b u d g e t surplus for the cu r r e n t f i scal
year e n d i n g June 30, w i l l d i s a p p e a r q u i c k l y in the p e r i o d
immediately f o l l o w i n g the e nd of this f i s c a l year..
Therefore,
I cannot e m p h a s i z e too s t r o n g l y the n e e d for c o n t i n u i n g p o l i c i e s
of p r u d e n t f i nance as we m o v e f u r t h e r into the m o b i l i z a t i o n
period.
The current b u d g e t surplus is temporary.
I see no
p o s s ibility of its b e i n g m a i n t a i n e d u n less l e g i s l a t i o n p r o v i d i n g
for i n c r e a s e d taxes is enacted.
Let me fill in a little of the b a c k g r o u n d on that statement.
Revenue c o l l e c t i o n s this y e a r are r u n n i n g c o n s i d e r a b l y above
earlier estimates,' a n d e x p e n d i t u r e s are r u n n i n g lower..
Part
of the in c r e a s e in collections, however, is the r e s u l t of

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- 5 a b n o r m a l b u y i n g to e x p a n d d e a l e r s ' I n v e n t o r i e s a nd of I n c r e a s e d
consumer b u y i n g ' i n a n t i c i p a t i o n of shortages or a tax rise.
Certainly, we can take little c o m fort in these a s p e c t s of the
situation.
F o r w a r d b u y i n g and. e x c e s s i v e s t o c k p i l i n g h a v e d r a w n
some of next y e a r ' s b u s i n e s s into this y e a r ~
and t hey hav e
g r eatly i n c r e a s e d the u p w a r d p r e s s u r e on the p r i c e level.
T h e ^ l o w e r rate of G o v e r n m e n t e x p e n d i t u r e s , as c o m p a r e d ' w i t h
t h a t %a n t i c i p a t e d last January, a lso r e p r e s e n t s in large part a
t r a n s i t o r y situation.
It is due m a i n l y to a l o wer rate o f
m i l i t a r y e x p e n d i t u r e s than had b e e n expected, some r e d u c t i o n s in
the outgo for c i v i l i a n programs, a nd some r e d u c t i o n s due to
economic conditions.
The V e t e rans' A d m i n i s t r a t i o n a nd the
C o m modity Credit Corporation, for example, a d m i n i s t e r c e r t a i n
programs w h i c h are c l o s e l y r e s p o n s i v e to changes in e c o n o m i c
conditions.
These a c t i v i t i e s are r e q u i r i n g s m a l l e r o u t lays than,
had seemed p r o b a b l e as we looked a h e a d last January.
W i t h r e s p e c t to d e f e n s e payments, however, I am told by
those r e s p o n s i b l e for a d m i n i s t e r i n g our m i l i t a r y p r o g r a m s that
the r e d u c t i o n in e x p e c t e d outgo d u r i n g the cu r r e n t f i s c a l y e a r
is l a r g e l y the r e s u l t of changes in the t i m i n g of p a y m ents.
It
is not due to a n y r e d u c t i o n in the size of the p r o g r a m to w h i c h
our r e v e n u e p l a n n i n g m u s t be geared.
F r o m h ere on, the d e f e n s e
effort w i l l re q u i r e e x p e n d i t u r e s at a f a s t e r rate tha n
collections unless re v e n u e s are i n c r e a s e d b y n e w tax legislation.
If at this cr u c i a l p o i n t we fail to m a k e p r o v i s i o n for the
future, a c o n t i n u i n g d e f i c i t w i l l r e s u l t f r o m the n e c e s s a r y costs
of o u r ^ d e f e n s e program.
To a v o i d this, the d e c i s i o n m u s t be.
made w i t h o u t d e l a y to kee p our p a y m e n t s on a current b a s i s .
A p a y - a s - w e - g o d e f e n s e policy, however, m u s t h a v e n a t i o n w i d e
support.
The d e c i s i o n to a d h e r e to it m u s t be m a d e b y our
citizens themselves.
We h a v e the p r i c e l e s s p r i v i l e g e of l i v i n g
in a free N a t ion.
The m e n who f o u n d e d our N a t i o n p l a c e d the
r e s p o n s i b i l i t y for r i g h t f u l a c t i o n s on the p e o p l e as i n d i v i d u a l s .
We have kep t it there.
We t h ink our g o v e r n m e n t a l s y s t e m is the
best in the world.
B u t b e c a u s e we are free, n a t i o n a l p r o g r a m s
and p o l i c i e s ca n n o t . b e e f f e c t i v e w i t h o u t w h o l e h e a r t e d
c ooperation a n d u n i t e d effort.

A n a t i o n a l p r o g r a m for m a i n t a i n i n g the f i n a n c i a l h e a l t h of
the N a t i o n r e q u i r e s a d e q u a t e revenues.
As I h a v e , a l r e a d y
emphasized, h o w ever, p r u d e n t p o l i c i e s of n a t i o n a l f i n a n c e m u s t
he s u p p l e m e n t e d b y p r i v a t e p r o g r a m s for c o n s e r v i n g o ur f i n a n c i a l
resources d u r i n g this c r i t i c a l p e r i o d in the d e f e n s e effort.
As a p a r t of the p r o g r a m to e n c o u r a g e n e w savings, the
Treasury is b e g i n n i n g a n i m m e d i a t e e x p a n s i o n in a l l of its
p r o m o t i o n a c t i v i t i e s for the sale of U n i t e d States savings bonds.
In the years since these s e c u r i t i e s were first offered, they
have, as y o u know, a c h i e v e d a n ^ i m p o r t a n t p l a c e in the f i n a n c i a l
planning of m i l l i o n s o f the N a t i o n ' s families.
T h e y are one of
the e s s e n t i a l el e m e n t s in the T r e a s u r y ' s e f f o r t s to s p read the
ownership of F e d e r a l s e c u r i t i e s as w i d e l y as p o s s i b l e a m o n g the
citizens of the Nation.
F e w people, I believe, are a w a r e of the
fact that at the p r e s e n t time, there are $ 5 8 b i l l i o n of savings
bonds o utstanding, of w h i c h m o r e t h a n $34 b i l l i o n are in Series
E bonds.
R e c e n t legislation, as y o u know, p r o v i d e s the p r i v i l e g e to
holders of m a t u r i n g Series E b o n d s to co n t i n u e t h eir i n v e s t m e n t s
in G o v e r n m e n t s e c u r i t i e s on e v e n m o r e a d v a n t a g e o u s terms tha n
prevailed in the past.
At the time of m a t u r i t y , h o l d e r s w ho do
not w i s h to cash their b o n d s m a y r e t a i n them a nd a u t o m a t i c a l l y
receive i n t e r e s t on their sec u r i t i e s for as l ong as a s e cond
10-year period.
The n e w p r o v i s i o n s a lso m a k e it p o s s i b l e for
holders of m a t u r i n g S e r i e s E bonds to e x c h a n g e t hem on f a v o r a b l e
terms for Series G bonds.
These m e a s u r e s h a v e .g i v e n a d d e d
strength to the savings b o n d program.
As t h e 'T r e a s u r y has e m p h a s i z e d t h r o u g h o u t the e n t i r e p e r i o d
of savings b o n d promotion, the p r i m a r y a i m is to i n c r e a s e savings
in all forms -- in m u t u a l savings banks, in c o m m e r c i a l banks, in
savings an d loan a s s o c i a t i o n s , in life i n s u r a n c e a nd in
Government securities.
The i m p o r t a n t thing, i n a p e r i o d like
the present, is that e a c h c i t i z e n spend less an d save m o re.
If
this is a c c o m p l i s h e d , all types of savings w i l l benefit.
As bankers, y o u are f u l l y aware of the r e q u i r e m e n t s of sound
finance.
Y o u are c l o s e l y a s s o c i a t e d w i t h k e y d e v e l o p m e n t s in
your own c o m m u nities.
F o r these reasons, y o u are in a b e t t e r
position t h a n a n y o t her g r o u p to e x e r c i s e f i n a n c i a l l e a d ership.
You can p e r f o r m a t r e m e n d o u s n a t i o n a l service -- right in y o u r
own home towns - - b y m a k i n g e v e r y e f f o r t to f u r t h e r a clear
u n d e r standing of the issues at stake.

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- 7 I k n o w that y o u w i l l h a v e m a n y o p p o r t u n i t i e s , b o t h on a n
indi v i d u a l a nd a c o m m u n i t y basis, to e x p l a i n the n e c e s s i t y for
greatly i n c r e a s e d taxes.
Y o u w i l l h a v e m a n y o p p o r t u n i t i e s , in
the course of y o u r p a r t i c i p a t i o n in.the v o l u n t a r y credit
r e s t r i c t i o n program, to t a l k over w i t h the b u s i n e s s m e n of y o u r
localities the n e e d for a v o i d i n g u n n e c e s s a r y e x p e n d i t u r e s and
u n n e c e s s a r y d i v e r s i o n of m a t e r i a l s .
Y o u w i l l find m a n y
occasions, also, to p o i n t out to y o u r f e l l o w ci t i z e n s the solid
advantages of i n c r e a s e d savings w h i c h can be b e t t e r u s e d w h e n
our m i l i t a r y d e m a n d s c an be m e t w i t h o u t c u r t a i l m e n t s e l s e where.
I urg e that e a c h one of you, w h e n y o u r e t u r n home, give
these m a t t e r s y o u r m o s t serious att e n t i o n .
A great r e s p o n s i b i l i t y
rests on you:
First, as A m e r i c a n citizens l i v i n g in one of the
most c r u c i a l p e r i o d s in the h i s t o r y of h u m a n freedom; and second,
as leaders in the f i n a n c i a l c o m m u n i t y ~~ a v i t a l s e c t o r of our
free e n t e r p r i s e economy.
We in A m e r i c a are strong.
We are free. • We are p r e p a r e d b y
tradition a nd b y l ong e x p e r i e n c e to u n d e r t a k e the full r e s p o n s i ­
bilities of A m e r i c a n c itizenship.
M a n y times in the p a s t we a ll h a v e faced grave c h a l l e n g e s
and we h a v e m e t them.
E v e n t s since the close of W o r l d W a r II
have m a d e us realize, that p r e s e r v a t i o n of f r e e d o m in the w o r l d
can be a c h i e v e d o n l y b y c o n s t a n t effort.
F r e e d o m is a l i v i n g
thing w h i c h m u s t be n o u r i s h e d daily.
M u c h h as b e e n done to p r o t e c t o u r s e l v e s a n d those fr e e d o m s
without w h i c h there w o u l d be little to defend.
The f o r e i g n
policy of the U n i t e d States h as b e e n s u c c e s s f u l in the face of
every p l o t and e v e r y ru t h l e s s a t t e m p t to s p r e a d d i c t a t o r s h i p .
Our a b i l i t y to p r o d u c e has e n a b l e d us to'use our r e s o u r c e s
in h o l d i n g b a c k a c t i v e C o m m u n i s t aggr e s s i o n , and also, has b e e n
effective in r e p e l l i n g the threat of attack.
Economic and
military a s s i s t a n c e d e f e a t e d the m e n a c e a g a i n s t Turkey.
American a id h e l p e d the p e o p l e of G r eece to o v e r c o m e a C o m m u n i s t
attempt at revo l u t i o n .
The a i r l i f t s a ved Berlin.
Marshall Aid
strengthened E u r o p e 's h o p e for free w e s t e r n d e m o cracy.
The
nations of that area, u n d e r the A t l a n t i c Pact are b e c o m i n g .
increasingly p r e p a r e d to r e s i s t a g g r e s s i o n .
U n i t e d N a t i o n s a c t i o n in K o r e a has so far a v e r t e d W o r l d W a r
Three. ^This c o u n c i l has m a d e c l ear that it w i l l n ot p e r m i t
aggression to go u n o p posed.
It ha s d e c i s i v e l y s h o w n that it does
not intend to a l l o w a r m e d c o n f l i c t to spre a d if a n y h o n o r a b l e
means of p r e v e n t i n g such a t r a g e d y c an be found.

O

sJo

8
The a b i l i t y of the U n i t e d States to p r o d u c e m a t e r i a l aid
was e s s e n t i a l to these a c c o m p l i s h m e n t s . H o w e v e r , there is
another i m p o r t a n t element.
It is the e l e m e n t of g ood f a i t h -one w h i c h you, as bankers, k n o w to be of v i t a l i m p o r t a n c e .
Our
country, gentlemen, h as kept f a i t h w i t h those, w h o like us,
count f r e e d o m of religion, f r e e d o m of thought, f r e e d o m to g o v e r n
one's self b e y o n d price.
The C o m m u n i s t _dictatorships h a v e d i s t o r t e d w o rds u n t i l they
have no m e a n i n g .
T h e y h a v e used those w o r d s as a w e a p o n a g a i n s t
us but we h a v e r e s p o n d e d w i t h s o m e t h i n g m o r e eff e c t i v e .
We have
lived up to our obli g a t i o n s .
W h i l e the C o m m u n i s t s h a v e talked
we h a v e b e e n a c t i v e l y e n g a g e d in c e m e n t i n g i n t e r n a t i o n a l
r e lationships w i t h free n a t i o n s to e n a b l e them to Join w i t h us
in b u i l d i n g up the e c o n o m i c h e a l t h a n d p e ace of the world.
S t r e n g t h e n i n g our n e i g h b o r s in the free areas of the w o r l d
is a s o und i nvestment.
A h e a l t h y m a n cannot r e m a i n so in a
community of s i c k p e ople . The time h as p a s s e d w h e n it is p o s s i b l e
for one or two n a t i o n s to r e m a i n s t r o n g in a w o r l d c o m m u n i t y of
weak and h u n g r y o n e s . E c o n o m i c h e a l t h cannot be c o n f i n e d to
a few sections of the globe.
L o n g ago we came to r e a l i z e in
this c o u n t r y that e c o n o m i c illness in a n y state w e a k e n s the Union.
Wow we k n o w that the same p r i n c i p l e a p p l i e s b e y o n d our b o r d e r s .
Thus it b e c o m e s e v e n m o r e i m p o r t a n t for us to l ook to the
s t r e n gthening of our o wn c o u n t r y d u r i n g a p e r i o d w h e n we are
fighting to b u i l d up the mil i t a r y , e c o n o m i c and m o r a l s t r e n g t h
of all free n a t i o n s so that we w i l l be not a l one in o ur d e f e n s e
effort.
We m u s t use e v e r y m e a n s to s t r e n g t h e n o u r s e l v e s so that we
may c o n tinue to m e e t the t r e m e n d o u s r e s p o n s i b i l i t i e s that h a v e
come to the U n i t e d States in this gene r a t i o n .
I k n o w that the
people of our c o u n t r y are a w are of the i n e s c a p a b l e n e c e s s i t y of
meeting our n a t i o n a l and i n d i v i d u a l o b l i g a t i o n s .
We h a v e alwa y s
met them.
A n d we h a v e the stamina, the s e l f - c o n t r o l a nd the
vision to m e e t t h e m now.

0O0

before in our history.

I am sure

that you share my confidence,
however, that our citizens will
fulfill them with pride and with
honor —

with fulI awareness of

the magnitude of the task, and with
full faith in their ability to
perform it.

- 46 I

As bankers, you are in a position
to exercise real

leadership.

you

sit down with your customers to
talk over their financial needs
when you meet with your fellow
citizens in business or civic
groups -- I hope that you wiI I
make use of every opportunity to
further public understanding of
the great issues which are before
our people today.
The responsibi Iit ies of American
citizenship are graver than ever

45

savings in all forms -- in commercial
banks,

in mutual savings banks,

savings and loan associations,
life insurance,

in
in

in Government

securities, and in all other forms
of saving.

The important thing

in a period like the present is
that each citizen spend less and
save more.

If that is accomplished,

an important victory in the battle
against inflation will have been
won.

high.

The liquid assets of both

a ions are
individu a 1s and c orpo K
f3ct
record 1ev e 1s .

It is

sav ings program

of

scope is requ ired,

C

1ear that

v e ry br 08d
if w e are to

succeed in Keen ing av a i1a b 1e fund
from exercising their full
force on the price level.
As a part of the or o k ram to
encourage new savings, the Treasury

areas i

£% #**

t iceah I e t e f f e e t .

lav

n a t i o n w i d e program undertaKen
banK i rig . g r o u p s and
oiuntary re
3

f credit

11

m

Uj

M

is

Í %J

i ri

5'rs to promote
*

h*. r
mw

InItheftra
mm

entiai osrt

t i - i n f I a t ionary program.

urge you to g i v e t h i s program yot
e s t cooper
try @ff
c-

i tu a tio

f©' musr

to m

mi n******

m ia

c r e d i t area

ar e to p r o v i d e t h e environm«

if

Î

depends on you.
** ,

f '' \ i } v »

Only our citizens
■

themselves can mane it possible for
our tax system to perform its historic
function **- the maintenance of the
finances of the Government in a sound
condition.
a

That is the major fact

ithi respect to our revenue problem

which 1 should I ixe to leave with you
this evening.
while 1 have stressed the urgency
of the need for new tax legislation,
the inflationary problem is, of

29£
Amer ¡can citizen.
tax system

Our great voluntary

is one of the foundations

of our democratic form of Government.
I want to assure you that we are
maxing every effort within our
power to protect that system.

And,

when you consider the size and
extent of this operation,
digressions are

the few

indeed

n the final recxoning, however,
our success in tax enforcement and in
the broader area of fiscal policy

convince a jury.

And far more often

than not, he finds that the facts
have been well hidden.

If you could

read the histories of some of our
successful cases,

I am sure you

would marvel at the results which
our agents achieve from scanty
initial

informât ion.

I have digressed to give you
some of the facts with respect to
tax enforcement because this subject
is of direct persona I import to every

the professions

tax evaders

- to

criminal type in
the evidence

produce indictments and convictions
is a far more difficult undertaxing
a

n to maxe va
» Revenue Service

sta f f
Revenue
endeavoring

c

nt

i l l

is

criminal tax

evader to jail needs facts, and neec^s
them In such form that they will

(

a
,n

- is -

r\ f

nm

the

jse Ways

n

is category

the

H

f

mea

r*

viii11 e e

?
v

recommendation
?»

records and to file

a

§B
C

oroner
made I

fe Iony instead of a mi sriemeanor.
Further legislation proposals
of the Crime Committee are under
study by the Treasury, and reports
on them « » I I be transmi tted when
desired to appropriate committees of
the Congress.
Let me observe here that to o in

the criminal element.

It recommended

that our action be supoorted with
necessary appropriations by the
Congress.
At the same time the Senate
Crime Committee presented a lengthy
list of suggestions for new
legislation affecting tax law
enforcement.

Endorsement of the

Treasury already had been given to
some of these proposals,

when they

were discussed by a subcommittee of

■*L

c „

ion, under General Dun Id p

tf*\

»

iff*

S

direction, will concentrate the
efforts of our best trained
investigative agents on the income
tax affairs of gamblers and
racketeers.
Commenting on the establishment
the Special Fraud Section, the
final report of the Sena te Cr ime
invest igating Cornavi t tiSjSs last week
called this a "most effe ct i've and
Jsefa I step" to coll ect taxes

from

tieveiooed over iong years of
exoer ience in revenue collect
r a

0 I rec

g

t

t

evaders to just ice.
Iii: ve o e e I w e l l
Y e t

r ©

§ 6

ti x

■g

* i

Iness effort

r e• s r i a a .
not

^

V

A € w f# *I

w

11 C oiihi;iss ion§r If Interns I

a 1 venu

t e d I •r i
P

Ft

H.

x
Iap,
ann 0
exceo
t ione I Iy experienced
. <
§

er V I
nevenues SService
agent,
s<5

i a 1 it r >
e r v ic 0 *

cl

to he 6

ion Aitnin

The Special Frau

experience for fiscal

1950

not an unusual one in recent
years

Commissioner of

Interna I
that the

of additional
f isea I

1951, due to front-line enforcement,
will be $1.9 billion.

The additional

assessments recorded in the f isea I
years 1947,

classes as a result of front-line
*

enforcement work for the fiscal
year I550.
I

j*

I of

Approximately $258 mi

2
this amount was realized as a

result of fraud invest igat ions.
This $258 million,

incidentaI Iy,

more than enough to defray the
cost of the entire operations of
the Bureau of Internal Revenue
for a whole year.

gf£

2 8

tax enforcement.

«•

I am proud to be

able to report to you that our
enforcement officers have been
and are doing an effective job
In protecting the Nation's revenues.
Their record of success in
uncover Ing tax evasions, fraudu Ient
and otherwise,

is an Impressive

one.
Added assessments of $1.8 billion
were made against taxpayers of all

every effort to

e ir

II§ res I iil

IiI a t

1tv,

rations

A

il y of internal

into enfore

e t Îv it îe s .

is ress

arge oartion of

e staff of

Bureau

6:

it is nece

a substantial oart of th

Revenue

wev er

e protection o

at for

E

is assigned to front-Ii

a.

K n o w . our tax system is built on
the principle of voluntary
self-assessment and payment.

it

has never been the po i icy of the
Treasury --

it has never been a

principle of our democratic form of
Government -- that our revenue
collectors should operate as a
Gestapo peering over th*> shoulders
of every taxpayer.

I am sure that

no one of us wants that approach.
The vast majority of our

policy, of course, must have
nationwide support.

I am sure tha

the people of Mew Mexico will give
wholehearted cooperation

in the

efforts to further programs which
are essential to the financial
Ith of the Nat ion.
hea 1
R iight

her e,

mom*itfi to disc u s s

1
iet me stop for a
p

HIJ P C f

ion wh ich

CO

CO

■

has bee?n very m uc 1'i in the pub 1ic
dur’ing rec ent months

mat 1,er of tax enf c)rcement

the
As you

convince themse Ives /ths t we shall
fail.
But we must not fail.

We have

the latent strength to meet our
undertaK ings, but we must protect
that strength.
The Congress cannot do this
job alone.

The Administration
*

cannot do it alone.

It must be a

cooperative endeavor for .all of us.
1 wish that all of you
people could go into the committee

>
k.
■f‘
!r
W
'

I**

kM,i
V

I©

i 1-11

¥
*
>
;

have the resot
s#

dut

f
t #V!: T
f&p

P

i

(0

r

%0

i

"}

f)

»

f

military

0

IT . i S

iI I d

"

u o

ut

f*

tree t oroduction
necna

Is cc

j

h ft

| ri t i n y § o d ;.n eg

k.&3k may
a r s ty
S X

hK

a that
V

¿¡> JL

jL

y ■ 6 ** <$

€

| '7 £

V

Issuas
in r

u

hopeful Iy

Igny i-jf tflem.

undoubted

have hiSfii a to1a to

picture.

I have put them before

you because they are essential to
a full understanding of the
inflationary problem with which
we shall have to live for the
duration of the defense period.
at this crucial point, we fail
to make provision for the future,
a continuing deficit will result
from the necessary costs of the
defense program.

If

background behind those statements.
As you may know, the budget surplus
for the current fiscal year was not
anticipated when we made our
preliminary estimates

last January.

Actual outgo in payment for our
defense purchases during the
present calendar year has been
running less than we had expected
at that time,

I am told by those

responsible for administering our
defense programs, however, that
this reduction

is largely the result

These facts, are reassuring.
But they can give us little basis
*

for complacence.

I cannot

emphasize too strongly that the
budget surplus for the current
fiscal year is temporary,

for the

twelve months ending Jure 30,

1952

the next fiscal year ~~ p r e s e n t \
estimates indicate a budget deficit
amounting to $10 billion,

in the

absence of additional revenue
legislation.
Let me fill in a little of the

in a iittle over a month I shall

hol di ngs
I securities

record

hesi tance in the upward price spirals
must not blind us to the continuing
threat of inflation during the defens
build-up.

To pay for our defense

needs as we go and to greatly
increase our national savings are
essentials of our domestic defense
program.

They are essential weapons

in the battle against our most
formidable domestic enemy -inf Iation.
First, as to revenues.
/

The

facts with respect to our present

nr
68t

•rt

|I

**

*

14

program entaiIs.
The second,^ h i Ie it includes
the credit area,

is actually of

much broader scope.

It has to do

|

with creating a climate in which
v|i

'all

of
. .

our people, businessmen,

4

■

•

■

'

|

■ /

/

governmental units, and consumers
alike, will voluntarily decide to
spend less and save more; and will
hold to their decisions for the
duration of the rearmament period.
The present

lull

in consumer

buying -- the present signs of

attention.

Both are matters which

require clear cut programs based on
full understanding, courageous action,
and unremitting effort.

Both are

necessary to the continued economic
health of our Nation during this
crucial period of mobilization of our
mi Iitary strength.
The first of these matters has
to oo with Government financing
©

poiicy -- the means which we will
adopt for meeting the tremendous
financial outlay which our defense

responsibilities and new problems.
,You are guardians of an important
sector In the domestic defense of
our Nation.

You must gear your

activities to the requirements of
our defense program as we Ii as to
the wants and needs which you are
accustomed to appraise in your own
* :tf ’ ■’

communities,

in fulfilling your new

responsiblIities for financial
leadership, there are two matters of
great national

Import which, at the

present time, warrant your particular

**

i I

To meet the responsibi1ities of
this position, you must draw on a
wide background of knowledge and
experience.

You must -- above

ail -- be able to exercise good
judgment; to make the right decisions
at the right time.
The whole Nation can be proud
of the splendid service which the
banking institutions of this country
have performed during the past
momentous decade in our history.
But now you are faced with new

transact Ions.
essential

Bankers are an

link in this chain.

Moaern business and modern
agriculture cannot exist without
credit.

And those who deal

in

credit must be alert to business
|

|

1||

V pi®

¿■‘«SnS ItfSfltt

trends and conditions throughout
the Nation, as well as to the
wants and needs of their own
localities.

As bankers, therefore

you occupy a strategic position
both in our national

life and in

the life of your own communities.

b e w i l d e r i n g maze to the p i o n e e r
merchants who f i r s t

s e t out to

e s t a b l i s h banking s e r v i c e s here.
As the records of early day
enterprise show, your first
communities existed mostly by
means of what they could grow and
produce themselves, and by barter.
Money had limited usage.

Today, your c i t i e s ,

your towns,

and even a la r g e p r o p o r t i o n of your
farms and r a n c h e s ,

are dependent on

a v a s t c h a in of commercial

0c

8

tre expected to p r o v i d e i r r i g a t i o n
to over 3bG,

acres.

When t h i s

program i s ft»fly in o p e r a t i o n .
New M e x i c o ’ s p r o g r e s s

in r e s o u r c e
7^:-

development w i l l \ add to i t s
already

im portantVlace

in the

economic l i f e of the Na tion.
Here in New Mexico, as elsewhere,
the c o m p l e x i t i e s of the modern
b u s i n e s s world have permeated every
" ’||p§ ' ‘

■

|: ;.

area of your S t a t e ! s economy.
instance,

For

s t a t u t e s and r e g u l a t i o n s

a f f e c t i n g banking would prove a

- 7 -

\

\

commonities - - and here was the f i r s t
demonstrati on of atomic energy in
action.

Here our f r e e d o m - i o v i n g
Y ft fiaM B M

western world had one o f - i t s
birthplaces,

and here are going on

today developments which are v i t a l
to th at f r e e d o m - l o v i n g worJd*s very
survival.
T r u l y New Mexico i s a land of
beginnings,

and a land of g r e a t

accompIi shment.
Today, much of the work of our
atomic s c i e n t i s t s

in New Mexico and

here is of a variety which was
particularly Important to defense
production during World War II,
*

| || 11

1 11 | |1 | /

| ‘ •'

1

¡¡tl

y

i

|

1

. |

and is again an essential element in
the present defense program.
To me,

it seems particularly

appropriate that New Mexico, one of
the earliest footholds of our
continent's civiIization, should play
such an important part in the vast
new worId of atomic science.
Here some of the earliest traveler
from western Europe founded new

5
became the trading center at the
juncture of the Santa Fe Trail from
the east and the Old Span ish Trail fromi
the west.

Its history provides another)

striking i i lustration of the close
relation of New .Mexico to the great
story of the development of the
trans-continenta I highways of thi.s
country.

Your livestock,

your cotton,

your varied products of local
agriculture and local

industry go

out to the farthest corners of our
Nation.

The cotton which you grow

- I -

R e g a r d l e s s of whether he i s aware
jS f

1111p

t h a t Santa F e ' s h i s t o r y as a
permanently s e t t l e d community began
a decade b e f o r e the la ndi ng of the
P i l g r i m s , eve ry v i s i t o r who comes
to the c i t y of Santa Fe today i s
c e r t a i n to be g r e a t l y

impressed,

in

the th re e c e n t u r i e s which have elapsed
since

its f i r s t

s e t t l e m e n t by the

S p a n i a r d s , New Mexico has been one of
the g r e a t c r o s s r o a d s of t r a d e
between the e a s t and the west.
one hunored y e a r s ago, t h i s c i t y

Over

I

made
M0&

his extraordinary journey from
#A

£0£

T h e f o l l o w i n g a d d r e s s by S e c r e t a r y S n y d e r b e f o r e
the A n n u a l C o n v e n t i o n of the N e w M e x i c o B a n k e r s
A s s o c i a t i o n at the La F o n d a Hotel,
Mexico,

S a n t a Fe, N e w

is s c h e d u l e d f or d e l ivery at 8:00 p . n u M S T

(11:00 p.m.EDT),

Saturday,

for r e l e a s e at that time.

M ay

12, .^1951,> and is

404
TREASURY DEPARTMENT
Washington
The following address by Secretary Snyder
v t i i ™ f 6/ “1111®1 Convention of the New
Mexico Bankers Association at the JLa Fonda
Hotel, ^anta Fe, New Mexico, is srhpdni^
m.T),

m - x ir f a z u t o r

12.

1951. flnH

r elease at tfc&t t i n ^ .

I am delighted to be here tonight to meet with the
ofHyour state* MeXic° in thls beautiful and historic capital
As 1 arrived here yesterday, after a
hour flight
Kansas City, I could not help but think of the remark­
able transition that has occurred since Bill Beeknell made
nis extraordinary journey here from Franklin, Missouri,
Santa Fe°TrailS ag° ’ °Ver what later became famous as the
Regardless of whether he is aware that Santa F e ’s
h p f n ^ y a f ? permanently settled community began a decade
before th„ lanomg of the Pilgrims, every visitor who comes
to the city of Santa Fe today is certain to be greatly
impressed. In the three centuries which have elapsed since
one ofr?h settlement by the Spaniards, New Mexico has been
one of the great crossroads of trade between the east and
the west. Over one hundred years ago, this city became
the trading center at the juncture of the Santa Fe Trail
from the east and the Old Spanish Trail from the west
Its history provides another striking illustration o f ’the
close relation of New Mexico to the great story of the
development of the trans-continental highways of this
country
Your livestock, your cotton, your varied products
f local agriculture and local industry go out to the
farthest corners of our Nation. The cotton which you
grow here is of a variety which was particularly important
to defense production during World War II, and is again an
essential element in the present defense program.
To me, it seems particularly appropriate that New
4 *??' °ne of the earlies* footholds of our continent’s
civilization, should play such an important part in the
vast new world of atomic science.

S-2687

405

-

2

-

Here some of the earliest travelers from western
Europe founded new communities - and here was the first
demonstration of atomic energy in action. Here our freedomloving western world had one of its birthplaces, and here
are going on today developments which are vital to that
freedom-loving world's very survival.
Truly New Mexico is a land of beginnings, and a land
of great accomplishment.
Today, much of the work of our atomic scientists in
New Mexico and elsewhere has to do with defense. In days
to come we sincerely hope that these scientists will be free
to devote their efforts completely to man's welfare and
advancement. When we achieve that hope, it will be New
Mexico's distinction that here men helped revolutionize the
way of life for future generations.
Here in New Mexico, as elsewhere, the complexities
of the modern business world have permeated every area of
your State's economy. For instance, statutes and regulations
affecting banking would prove a bewildering maze to the
pioneer merchants who first set out to establish banking
services here. As the records of early day enterprise show,
your first communities existed mostly by means of what they
could grow and produce themselves, and by barter. Money
had limited usage.
Today, your cities, your towns, and even a large pro­
portion of your farms and ranches, are dependent on a vast
chain of commercial transactions. Bankers are an essential
link in this chain. Modern business and modern agriculture
cannot exist without credit. And those who deal in credit
must be alert to business trends and conditions throughout
the Nation, as well as to the wants and needs of their own
localities. As bankers, therefore, you occupy a strategic
position both in our national life and in the life of your

406
- 3 own communities. To meet the responsibilities of this
position, you must draw on a wide background of knowledge and
experience. You must — above all — be able to exercise good
judgment; to make the right decisions at the right time.
The whole Nation can be proud of the splendid service
which the banking institutions of this country have performed
during the past momentous decade in our history. But now you
are faced with new responsibilities and new problems. You
are guardians of an important sector in the domestic defense
of our Nation, You must gear your activities to the require­
ments of our defense program as well as to the wants and needs
which you are accustomed to appraise in your own communities.
In fulfilling your new responsibilities for financial leader­
ship, there are two matters of great national import which,
at the present time, warrant your particular attention. Both
are matters which require clear cut programs based on full
understanding, courageous action, and unremitting effort.
Both are necessary to the continued economic health of our
Nation
during this crucial period of mobilization of our
military strength.
The first of these matters has to do with Government
financing policy — the means which we will adopt for meeting
the tremendous financial outlay which our defense program
entails,
The second, while it includes the credit area, is
actually of much broader scope. It has to do with creating a
climate in which all of our people, businessmen, governmental
units, and consumers alike, will voluntarily decide to spend
less and save more; and will hold to their decisions for the
duration of the rearmament period.
The present lull in consumer buying -- the present signs
of hesitance in the upward price spirals — must not blind
us to the continuing threat of inflation during the defense
build-up. To pay for our defense needs as we go and to
greatly increase our national savings are essentials of our
domestic defense program. They are essential weapons in
the battle against our most formidable domestic enemy —
inflation.
First, as to revenues. The facts with respect to our
present defense program and the funds which will be available
to pay for it make the problem crystal clear.
As you may know, we now expect to end the present fiscal
year, closing on June 30, with a budget surplus of over $3
billion. This means that we shall close the fiscal year 1951
with the Government *s finances in a relatively strong

407
- 4 position -- a position which is reenforced by our postwar
record as a whole.
In a little over a month I shall have been Secretary of
the Treasury for five years. During that over-all period,
Treasury receipts will have exceeded expenditures by more
than $7 billion. This surplus and a part of the Treasury1s
wartime cash balance have been applied to debt reduction,
and during the past four years we have reduced bank holdings
of Federal securities — including the holdings of the
Federal Reserve System — by more than $11 billion.
These facts are reassuring. But they can give us
little basis for complacence. I cannot emphasize too
strongly that the budget surplus for the current fiscal year
is temporary. For the twelve months ending June 30, 1952
the next fiscal year — • present estimates indicate a budget
deficit amounting to $10 billion, in the absence of additional
revenue legislation.
Let me fill in a little of the background behind those
statements. As you may know, the budget surplus for the
current fiscal year was not anticipated when we made our
preliminary estimates last January, Actual outgo in payment
for our defense purchases during the present calendar year
has been running less than we had expected at that time. I
am told by those responsible for administering our defense
programs, however, that this reduction is largely the result
of changes in timing of payments. It is not due to a
reduction in the size of the defense program itself. And it
is this program to which our revenue planning must be geared,
I can foresee no possibility of meeting the present financial
commitments of our defense program without the new taxes
asked for by the President.
These are the broad outlines of the revenue and expend­
itures picture, I have put them before you because they are
essential to a full understanding of the inflationary problem
with which we shall have to live for the duration of the
defense period. If, at this crucial point, we fail to make
provision for the future, a continuing deficit will result
from the necessary costs of the defense program.
This we must try to avoid. We have the resources —
and we must have the determination — to build up our
military strength without subjecting the great production
mechanism of this country to the continued dangers of
inflation.
We may be sure that our enemies are fully aware of the
issues at stake. They are watching us hopefully. Many of

408
5
them* undoubtedly, have been able to convince themselves
that we shall fail.
But we must not fail. We have the latent strength to
meet our undertakings, but we must protect that strength.
The Congress cannot do this job alone. The Administration
cannot do it alone. It must be a cooperative endeavor for all
of us.
I wish that all of you people could go into the committee
rooms of the Congress, as I have, and observe the tremendous
expenditure of time and energy — the tremendous amount of
plain hard work — which is exerted during the periods when
new tax legislation is under consideration. These committees,
I am convinced, are inspired with the desire to fulfill the
trust which has been placed in them to the best of their
ability.
Every effective national policy, of course, must have
nationwide support. I am sure that the people of New Mexico
will give wholehearted cooperation in the efforts to further
programs which are essential to the financial health of the
Nation;
Right here, let me stop for a moment to discuss a
question which has been very much in the public eye during
recent months — the matter of tax enforcement. As you know,
our tax system is built on the principle of voluntary selfassessment and payment. It has never been the policy of the
Treasury — it has never been a principle of our democratic
form of Government — that our revenue collectors should
operate as a Gestapo peering over the shoulders of every
taxpayer. I am sure that no one of us wants that approach.
The vast majority of our citizens are honest and care­
ful in their tax payments. They make every effort to fulfill
their obligations. We realize, however, that for the
protection of this majority, it is necessary to direct a sub­
stantial part of the operations of the Bureau of Internal
Revenue into enforcement activities. For this reason, a
large portion of the staff of the Bureau is assigned to front­
line tax enforcement. I am proud to be able to report to you
that our enforcement officers have been and are doing an
effective job in protecting the Nation’s revenues. Their
record of success in uncovering tax evasions, fraudulent and
otherwise, is an impressive one.
Added assessments of $1.8 billion were made against tax­
payers of all classes as a result of front-line enforcement
work for the fiscal year 1950. Approximately $258 million

of this amount was realized as a result of fraud investiga­
tions. This $258 million, incidentally, is more than enough
to defray the cost of the entire operations of the Bureau of
Internal Revenue for a whole year.
The experience for fiscal 1950 was not an unusual one
in recent years. The Commissioner of Internal Revenue has
estimated that the yield of additional assessments for the
fiscal year 1951, due to front-line enforcement, will be
$1.9 billion. The additional assessments recorded in the
fiscal years 1947, 1948 and 1949 were similarly large.
It is not possible, of course, to do a perfect job.
The task is particularly difficult with respect to the
members of the criminal class. These individuals have many
devices for keeping the records of their activities secret.
They are skilled in evasion.
Within the limits of the Bureau’s resources, however, all
of the techniques and procedures developed over long years of
experience in revenue collection are directed at bringing tax
evaders to justice. These efforts have been well rewarded.
Yet we are not content. Recently, the Commissioner of
Internal Revenue appointed Brigadier General John B. Dunlap,
an exceptionally experienced Revenue Service agent, to head
a Special FSfaud Section within that Service. The Special
Fraud Section, under General Dunlap’s direction, will con­
centrate the efforts of our best trained investigative agents
on the income tax affairs of gamblers and racketeers.
Commenting on the establishment of the Special Fraud
Section, the final report of the Senate Crime Investigating
Committee last week called this a ’'most effective and useful
step" to collect taxes from the criminal element. It
recommended that our action be supported with necessary
appropriations by the Congress,
At the same time the Senate Crime Committee presented
a lengthy list of suggestions for new legislation affecting
tax law enforcement. Endorsement of the Treasury already
had been given to some of these proposals, when they were
discussed by a subcommittee of the House Ways and Means
Committee. In this category is a reommendation that wilful
failure to keep proper records and to file returns be made
a felony instead of a misdemeanor.
Further legislation proposals of the Crime Committee
are under study by the Treasury, and reports on them will
be transmitted when desired to appropriate committees of
the Congress,

410
7

Let me observe here that to pin down tax evaders of the
professional criminal type in the courts — to gather the
evidence which will produce indictments and convictions -is a far more difficult undertaking than to make vague and
unsupported charges against the Revenue Service staff.
The Revenue agent who is endeavoring to send a criminal
tax evader to jail needs factst and needs them in such form
that they will convince a jury. And far more often than
not, he finds that the facts have been well hidden. If you
could read the histories of some of our successful cases, I
am sure you would marvel at the results which our agents
achieve from scanty initial information.
I have digressed to give you some of the facts with
respect to tax enforcement because this subject is of direct
personal import to every American citizen. Our great
voluntary tax system is one of the foundations of our
democratic form of Government. I want to assure you that we.
are making every effort within our power to protect that
system. And, when you consider the size and extent of this
operation, the few digressions are small indeed.
In the final reckoning, however, our success in tax
enforcement and in the broader area of fiscal policy depends
on you. Only our citizens themselves can make it possible
for our tax system to perform its historic function — the
maintenance of the finances of the Government in a sound
condition. That is the major fact with respect to our
revenue problem which I should like to leave with you this
evening.
While I have stressed the urgency of the need for new
tax legislation, the inflationary problem is, of course, of
much broader scope. In addition to a defense pay-as-we-go
program, we must find the means of demonstrating to all of
our citizens the advantages of conserving their financial
resources during this critical period in the defense effort.
Important measures for realizing this objective are
already in operation. Restrictions on borrowing in the
housing and consumer credit areas are having a noticeable
effect. The nationwide program undertaken by banking
groups and others to promote voluntary restraints in the
granting of credit is another essential.part of the antiinflationary program, I urge you to give this program
your fullest cooperation. We must make every effort to
maintain a healthy situation in the credit area if we are
to provide the environment in which allocations, wage and
price stabilization, and other control measures can function
effectively.

The primary need at this time, however, is to persuade
each individual citizen of the desirability of curtailing
his own particular expenditure programs. I need not empha­
size to this audience the fact that credit is not the only
source of funds which may be used for inflationary spending.
Incomes, even after new taxes, will continue high. The
liquid assets of both individuals and corporations are at
record levels. It is clear that a savings program of very
broad scope is required, if we are to succeed in keeping
available funds from exercising their full force on the
price level.
As a part of the program to encourage new savings, the
Treasury is beginning an immediate expansion of its promotion
activities for the sale of United States savings bonds, As
you know, additional priviliges'to the holders of maturing
Series E savings bonds to retain their investments in this
form have already been provided by the Congress.
Let me emphasize, however, that the major goal of the
Treasury in its savings bond promotion is to increase savings
in all forms — in commercial banks, in mutual savings banks,
in savings and loan associations, in life insurance, in
Government securities, and in all other forms of saving. The
important thing in a period like the present is that each
citizen spend less and save more. If that is accomplished,
an important victory in the battle against inflation will
have been won.
As bankers, you are in a
ship. When you sit down with
their financial needs — when
citizens in business or civil
make use of every opportunity
of the great issues which are

position to exercise real leader
your customers to talk over
you meet with your fellow
groups — I hope that you will
to further public understanding
before our people today.

The responsibilities of American citizenship are graver
than ever before in our history. * I am sure that you share
my confidence, however, that our citizens will fulfill them
with pride and with honor — with full awareness of the
magnitude of the task, and with full faith in their ability
to perform it.

0O0

IMMEDIATE RELEASE

MayX 1951

"TJ

The Bureau of Customs announced today preliminary figures showing the
imports for consumption of commodities on which quotas were prescribed by
the Philippine Trade Act of 191*6, from January 1, 1951, to April 28, 195l,
inclusive, as follows-

Products of the
Philippines

: Established Quota
:
Quantity
•
•

Buttons ..........

850,000

: unit of
; Quantity
•
•

: Imports as of
: April 28 , 1951
•
•

Gross

300,570
1*57,999

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

200,000,000

Number

Coconut oil ......

1*1*8,000,000

Pound

55,ol*l*,UUo

Cordage .........

6 ,0 0 0 ,0 0 0

«

3 ,1 0 a , 251*

Rice .............

1,01*0,000

t»

-

(refined ....
Sugars

1,90 k,O CX ),000

Pound

(“unrefined ..
Tobacco ..........

559,825,558
6 ,5 0 0 ,0 0 0

Pound

73,900

413
TREASURY’ DEPARTMENT

Washington

IM M EDIATE R ELE A SE

Friday, M ay 1 1 , 19 5 1

S -2 6 8 8

The Bureau of Customs announced today preliminary figures showing the
imports for consumption of commodities on which quotas were prescribed by
the Philippine Trade Act of 191*6, from January 1, 1951, to April 28, 1951,
inclusive, as follows:

Products of the
Philippines

:
;

Established Quota
Quantity

•

Buttons ,. „»..... .

850,000

•
:
:
•
•

•
Unit of :
Quantity :
•
«
Gross

200,570
h

Cigars

200,000,000

Number

Coconut oil «......

EU8,000,000

Pound

Cordage .........*,
R i c e .....

6,000,000
1,01*0,000

Imports as of
April 28, 1951

tt

$ 7

, 9

9

9

55^o UÌ4-,UUo
3

, h

k

l , 2

5

k

it

(refined ••••
Sugars

l,90l*,000,000

Pound

(unrefined M
Tobacco ,. •. ♦*, f,#*

559,825,558
6 ,500,000

Pound

73,900

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 April 28, 1951, inclusive, as follows:

Commodity

Period and Quantity

Unit
of
Quantity

Imports as of
April 28,
19 5 1

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

Calendar year

3,000,000

Gallon

l,9M

Cream, fresh or sour ...

Calendar year

1,500,000

Gallon

171

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

Apr. 1, 1951july 15, 1951

5,000,000

Pound

81*5

29,239,808

Pound

«
Quota filled

150,000,000
60,000,000

Pound
Pound

Quota filled
Quota filled

5 ,000,000

Pound

U,X88,713

Venezuela
2,613,137,096
Netherlands
822,65¿,271
Other countries 963,1*29,333

Gallon
Gallon
Gallon

1,803,01*7,827
Quota filled
Quota filled

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 ....... •••••

Calendar year

(1)

The proviso to item 717(b) limits the imports for consumption at
the quota rate to ll*,6l9,90l* pounds during the first six months
of the calendar year.

TREASURY DEPARTMENT
Washington

415

IMMEDIATE R ELE A SE
F r i d a y , M ay 11, 1951

S-268?

The Bureau of Customs announced today preliminary figure-s 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 April 28, 1951, inclusive, as follows:

Commodity

Period and Quantity

Unit
of
Quantity

Imports as of
April 28,
1951

Calendar year

3,000,000

Gallon

l,9i|8

Cream, fresh or sour

Calendar year

1,500,000

Gallon

171

Butter ..............

Apr. 1, 1951July 15, 1951

5,000,000

Pound.

Calendar year

29,239,808

ur\
ca

Whole milk, fresh or
sour

Fish, fresh or frozen,
filleted, etc., cod,
Pound

(1)
Quota filled

o
o
o
o
o
o
•»
o

}

Pound
Pound

Quota filled
. Quota filled

5,000,000

Pound

It,18 8 ,7 13

White or Irish Potatoes:
o
o
o
o
o
o
o

Calendar year

ITwO
1—1

12 months from
Sept, 15, 1950

Petroleum and petroleum
Calendar year
Venezuela
2,613,137,096
Netherlands
822,65À,271
Other countries 963,1*29,333

(l)

Gallon
Gallon
Gallon

1,803,01+7,82.7
Quota filled
Quota filled

The proviso to item 717(b) limits the imports for consumption at
the quota rate to 111,619,901; pounds during the first six months
of the calendar year.

-

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

: Established
: TOTAL QUOTA

: Total imports
: Sept. 20, 195©,
î April 28. 1951

•

United Kingdom __ _ ....
Canada .... *...... ....
France ........... ----British India .... ....
Netherlands ...... ....
Switzerland ...... ....
Belgium ........... ....
Japan ............ .....
C h i n a ........ .... ....
Egypt ............. ....
C u b a ..... ........ ....
Germany .......... ....
I t a l y ............ ....

4,323,457

239,690
227,420

69,627
68,240
44,308
38,559
341,535
17,322
8,135

1,441,152

68,155
67,200

75,807

1,854
—

_

22,747
14,796
12,853

24,156
—

_____ 1*709,708_______

1/ Included in total imports, column 2.

—

68,155
«■»

1,854

_

m
m

—

»

1,441,152

—

—

21.263

Prepared by the Bureau of Customs

1,441,152
107,191

—

6,544
76,329
5.482.509

: Established :
Imports
l/
s
33-1/356 Of : Sept. 20, 1950,
t Total Quota : to April 28, 1951

mm
—

25,443
7,088

24,156

1,599.886

1,535,317

Preliminary data on imports for consumption of cotton and cotton waste chargeable to the quotas
established b y the President’s Proclamation of September 5, 1939, as amended
COTTON (other than lintersV (in pounds)

Country of Origin

Cotton under 1-1/8 inches other than rough or harsh tinder 3/4”
B^orts_Sept,_-20, 1950. to April 28. 1951. inclusive
«
Established Quota
Country of Origin
Established Quota
Imports

Egypt and the AngloEgyptian Sudan ....
P e r u ..... ..........
British India ......
C h i n a ........ ......
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
475,124
5,203
237
9,333

—
161,784
-

37,669
404,696
-

Honduras ........... ..
Paraguay .............
Colombia ..............
I r a q ..... ;...........
British East Africa ...
Netherlands E. Indies
Barbados . . ....... .
l/0ther British W. Indies
Nigeria ... :..... . .
2/0ther British W. Africa
jj/0ther 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.
3/ Other than Algeria, Tunisia, and Madagascar.
Cotton, harsh or rough, of less than 3/4”
Imports Sept. 20. 1950, to April 28, 1951

Cotton 1-1/8w or more, but less than 1-11/16»
Imports Feb. 1. 1951, to April 28, 1951

Established Quota (Global)

Established Quota (Global)

,

70 000,000

Imports

10 ,220,578

45,656,420

Imports
Quota filled

-

-

-

-,

TREASURY DEPARTMENT
Washington

IMMEDIATE REIEASE
Friday, May 11, 1951

S-269O

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 I-1/6 inches other than rough or harsh' under 3/£u
Imports Sept, 20, 1950, ’to April 26, 1951, inclusive
Country of Origin

Established Quota

Egypt and the AngloEgyptian Sudan ....
P e r u ...... .......
'
British India .......
China ... ^..........
Mexico ..............
Brazil ..........
Union of Soviet
Socialist Republics
Argentina ...........
Haiti
Ecuador .............

783,616
21*7,952
2,003,£83
1,370,791
8,883,259
618,723
1*75,121*
5,203
237
9,333

Imports

16 1,
-

37,669
£0£,696
-

Country of Origin

Established Quota

Honduras .............
Paraguay
Colombia.... .......,
Iraq ........
British East Africa •*
Netherlands E . Indies
Barbados ..... .......
1/0ther British W . .Indies
Nigeria *........ ..
2/other British W. Africa
3/0ther French Africa ...
' Algeria and Tunisia #•»

752
871
12 £
195
2,21*0
71,388
21,321
5 ,3 7 7
16,00£
689
-

Imports

.
-

-- ,*
-

- ■
-

1/ Other than Barbados, Bermuda, Jamaica, Trinidad, and Tobago.
2/ Other than Gold Coast and Nigeria.
3/ Other than Algeria, Tunisia, and Madagascar.
Cotton, harsh or rough, of less than 3/h"
Imports Sept. 20, 1956, to April 26, 1951

Cotton 1-1/8” or more, but less than 1-11/16»
Imports Feb. 1, 1951, to April 26, 1951

Established Quota (Global)

Established Quota (Global)

7 0 ,0 0 0 ,0 0 0

Imports

1 0 ,2 2 0 ,5 7 8

£5, £5 6 ,1*20

Imports
Quota filled

CO

2

COTTO'.! PASTES
(In pounds)
COTTON CARD STRIPS made from cotton having a staple of less than 1-3/16 inches in length, GCffBBR
WASTE, LAP WASTE, SLIVER WASTE, AND ROVING WASTE, AETHER- OR NOT MANUFACTURED OR OTHERWISE
ADVANCED IN VALUE: Provided, however, that not more than 33 -1 / 3 per cent of the puotas shall
be filled by cotton wastes other than comber wastes made irom 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:

Cointry of Origin

:
:
•

United Kingdom ....... *.
Canada
....
France ................ ..
British India ....... ..
Netherlands •«•••••••• ..
Switzerland .......... ..
B e l g i u m ...... .
Janan ................ ..
China .........
Egypt .............
Cuba ....... ••••••••• •*
Germany ............
I t a l y ........... .

Established
TOTAL QUOTA

: Established :
: Total imports
Imports
1/
: Sept. 20, 1950, to : 33-1/3/ of : Sept. 25, 1950,
2 To &al Quo t»a : to April 28, 1951
: April 28, 1951
1,1+1*1,152

1 ,1*1*1 ,1 5 2

1+,323,1*57
239,690
227,1*20
69,627
68,21+0
l+i*,388
38,55931*1,535
17,322
8,135
6,51*1*
■76,329
21,263

1,1*1*1,152
107,191
818,155
67,200

2!+,l56
-

25,1*1*3
7,088

21*,156
-

5,1*82,509

1 ,709,708

1 ,599,886

1 ,5 3 5 ,3 17

1/ Included in total imports, column 2*
Prepared by the Bureau of Customs

-

1,851*
-

-

75,807
22,71*7
It* ,796
12,853
-

-

6 8 ,15 5
—
—

1,851*
—

-

—

—,

—

—

—

—

—

IMMEDIATE RELEASE,
Tuesday. Hay 8. 19S1.

¡a

Secretary of ill« frensury Snyder announced today
tliat on May

1951» he will call for redemption the 3 per-

c ^ t heads of Sept «»her 15» 1951*55* which ere outstanding:
ia the amount of $755 million. The 2 percent bonds of 1951-53, which are
also callable on September 15, 1951, will not be called for redemption onj
Secretary Snyder alee stated that beginning on May

15,

he will offer for continuous subscription a new series of
treasury Sawings Motes*

these notes will be similar to ths

ssrles now being offered, emeept that the interest return
will run from l*bh percent if the notes are held for
6 months or less, to 1.88 percent if the aotee are held
for the full jhyear term.
farther details with respect to this offering will be
announced later.

that ¿ate]

TREASURY DEPARTMENT
Information Service

WASHINGTON, D

420
I M M E D I A T E R E L EASE,
T uesday, M a y 8 , 1951.

S-2691

S e c r e t a r y of the T r e a s u r y S n y d e r a n n o u n c e d
that on M a y 14,
3 percent

3.951* he w i l l call for r e d e m p t i o n the

bonds of S e p t e m b e r 15*

1951-55*

w h i c h are

o u t s t a n d i n g in the a m o u n t of $755 m i l l i o n .
bonds

of 1 9 5 1 - 5 3 , w h i c h are a l s o cal l a b l e

1951*

w i l l not be

The 2 p e r c e n t
on S e p t e m b e r 1 5 ,

called for r e d e m p t i o n on that date.

Secretary Snyder also

stated that b e g i n n i n g on

M a y 15, h e w i l l o f fer for con t i n u o u s
n e w series

t o day

of T r e a s u r y Savings Notes.

subscription a
T h ese n o tes

w i l l be s i m i l a r to the series n o w b e i n g offered,
e x c e p t that the i n t e r e s t r e t u r n w i l l r u n f r o m 1 . 4 4
if the n o t e s are h e l d for 6 m o n t h s

or less,

to 1 , 8 8

percent
percent

if the n o t e s are h e l d for the full 3 -year term.
Further details with respect
be a n n o u n c e d

later.

0O0

to this

offering will

STANDARD FORM NO. 64 „

Office M em orandum
to

:| Mr • Leon Siler

FROM

:

• u n it e d states g o v er n m en t
date:

May 7, 1951

Leon

SUBJECT:

Our Education Division would appreciate your release
of an announcement by the Secretary of the appointment
of Miss Mary M. Condon of Helena, Montana as chairman of
the Treasury Departments National Advisory Canmittee on
School Savings• For this purpose we are attaching suggested
copy as well as glossies. We would like the glossies to
be given to the Associated Press, International News Photos
and Acme News Photos.

RELEASE AFTERNOON NEWSPAPERS
Friday, May 11, 1951

Secretary Snyder announced today the appointment of Miss
Mary M. Condon, of Helena, Montana, State Superintendent of Public
Instruction for Montana, as chairman of the Treasury Department’s
National Advisory Committee on School Savings,
Miss Condon succeeds Dr. A. C. Flora, superintendent of schools
in Columbia, S . C •, who is retiring from active school work this
June.
In announcing the new committee chairman, Secretary Snyder
said: ’’The Defense'Bond program depends greatly on the assistance
of patriotic volunteers in all lines of activity — in industry,
banking, farm, labor, women’s organizations, fraternal and civic
clubs, and schools. The School Savings Program, which carries
the Treasury’s Bond and Stamp message to school students, has
received valuable advice and counsel from Dr. Flora, and I am
confident that it will go forward successfully with the cooperation
of Miss Condon, who has been very active on our behalf in Montana.”
A native of Iowa, Miss Condon has an A.3. and M.A. from the
University of Tnwi m d shun 1hiiiT" pi 11 hi t t i'i ii
has taught in both rural andT^i^ty^chdoXs'rsw£^^
Previous to becoming State Superintendent of Public Instruction for
Montana, Miss Condon spent over two years in India, during the last war,
as program director with the American Red Cross Services to the Armed
Forces Program. Miss Condon is a member of many civic and educational
organizations, including the National Education Association, the American
Association of School Administrators, and the American Association of
University Professors.

Miss Condon views the Treasury’s School Savings Program as an
important service to the country in the present emergency. ”Our
democracy will never fail,” she says, ”if the members keep their
sense of responsibility as individuals for preserving our American
way of life.”'
1

TREASURY DEPARTMENT
Information Service

WASHINGTON, D .C ,

423

REIxEA.SE A F T E R N O O N N EWSPAPERS,
F r i d a y , M a y 1 1, 195.1,
___

S -2 6 9 2

S e c r e t a r y S n y d e r a n n o u n c e d t o d a y the a p p o i n t m e n t of
Miss M a r y M. Condon, of H e l ena, Montana, State S u p e r i n t e n d e n t
Public I n s t r u c t i o n for Montana, as c h a i r m a n of the T r e a s u r y
D e p a r t m e n t ' s N a t i o n a l A d v i s o r y C o m m i t t e e on S c h o o l Savings.

of

Mis s C o n d o n s u c c e e d s Dr. A. C. Flora, s u p e r i n t e n d e n t of
schools in Columbia, S o u t h Carolina, w ho is r e t i r i n g f r o m acti v e
school w o r k this Juno.
In a n n o u n c i n g the n e w c o m m ittee chairman, S e c r e t a r y S n y d e r
said"The D e f e n s e B ond p r o g r a m d e p e n d s g r e a t l y on. the a s s i s t a n c e
of p a t r i o t i c v o l u n t e e r s in a ll lines of a c t i v i t y —
in industry,
banking, farm, labor, w o m e n ' s o r g a n i z a t i o n s , f r a t e r n a l a n d civic
clubs, a n d schools.
The S c h o o l S a v i n g s Program, w h i c h carries
the T r e a s u r y ' s B o n d a nd S t a m p m e s s a g e to scho o l students, has
r e c eived v a l u a b l e a d v i c e a nd c o u n s e l f r o m Dr-. Flora, a n d I a m
confident that it w i l l go f o r w a r d s u c c e s s f u l l y w i t h ' t h e
c o o p e r a t i o n of M i s s Condon, who has b e e n v e r y a c t i v e on our b e h a l f
in M o n t a n a ."
A n a t i v e of Iowa, Miss C o n d o n has a n A . B . a nd M .A . f r o m the
U n i v e r s i t y of Iowa.
She has taught in b o t h r u r a l a n d city
s c h o o l s ., Pr e v i o u s to b e c o m i n g State "Superintendent of P u b l i c
I n s t r u c t i o n for Monta n a , Mis s C o n d o n spent o ver two y e a r s in I n dia
d u r i n g the last war, as p r o g r a m d i r e c t o r w i t h the A m e r i c a n R e d
Cross Se r v i c e s to the A r m e d F o r c e s Program.
Mis s C o n d o n is
a m e m b e r of m a n y civic a nd e d u c a t i o n a l or g a n i z a t i o n s , i n c l u d i n g
the N a t i o n a l E d u c a t i o n A s s o c i a t i o n , the A m e r i c a n A s s o c i a t i o n of
School A d m i n i s t r a t o r s , a nd the A m e r i c a n A s s o c i a t i o n of U n i v e r s i t y
Professors.
M i s s C o n d o n views the T r e a s u r y ' s Scho o l S a v ings P r o g r a m as
an i m p o r t a n t service to the c o u n t r y in the p r e s e n t e m e r gency.
"Our d e m o c r a c y w i l l n e v e r f a i l , ” she says, "if the m e m b e r s k e e p
their sense of r e s p o n s i b i l i t y as i n d i v i d u a l s for p r e s e r v i n g our
A m e r i c a n w a y of life."

0 O0

THREE PERCENT TREASURY BONDS OF 1951-55
(BATED SEPTEMBER 15, 1931)

HOTICS OP CALX, POR REDEMPTION

To Holders of 3 percent Treasury Bonds of 1951-55 (dated September 15 ,
1931)> and Others Concerned:
1.

Public notice is hereby given that all outstanding 3 percent

Treasury Bonds of 1951-55* dated September 1 5 , 1931, due September 1 5 ,
1955* are hereby called for redemption on September 1 5 , 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 cir­
cular 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 Depart­
ment Circular Ho. 666 , dated July 21, 1941.

John ¥. Snyder,
Secretary of the Treasury.
TREASURY DEPARTMENT,
Washington, May 14, 1951«

Release, Morning Newspapers,
M o n d a y , M a y 14, 1 9 5 1

The
3 per

cent

Secretary

Treasury Bonds

$755,000,000,
The

of
of

will be called
text

5

the

Treasury

1951-55,
f or

announced

outst

nding

-

t o d a y t h a & the
i n the

redemption on September

of the formal notice

of c a l l

i c,f

is as

a m o u n t of
15,

19 5 1 ,

follows:

STANDARD FORM NO. 6 4

Office M em orandum
TO
FROM

• u n it e d sta tes g o v er n m en t
date:

Hr. Siler

May 99 1951

! Mr. Kilby

SUBJECT:
There is attached a copy of the formal notice of call for
redemption on September 15> 195l> of the 3 percent Treasury
Bonds of 1951-55.

This is the call referred to in the Secretary* s

press release of yesterday*

Will you please release the call to

the press for publication on Monday, May II4.

Attachment

TREASURY DEPARTMENT

427
R E L EASE M O R N I N G N EWSPAPERS,
M o n d a y , M a y 14, 1 9 5 1 . __

S -2 6 9 3

The S e c r e t a r y of the T r e a s u r y a n n o u n c e d t o d a y that the
of 1951-55; o u t s t a n d i n g in the a m o u n t of
$755,000,000, w i l l be c a l l e d for r e d e m p t i o n on S e p t e m b e r 1 5 , 1 9 5 1 .
3 percent Treasury Bonds

The

text of the f o r m a l n o t i c e

of call is as follows:

T H REE P E R C E N T T R E A S U R Y B O N D S OF 1951-55

rBATED'"SlPfEl©ER 15, 1931).
N O T I C E OF C A L L F OR R E D E M P T I O N
To H o l d e r s of 3 p e r c e n t T r e a s u r y B o n d s of 1 9 5 1 - 5 5
S e p t e m b e r 15, 1931), a nd Others Concerned:

(dated

1.

Public n o t i c e is h e r e b y g i v e n that a l l o u t s t a n d i n g
3 p e r c e n t T r e a s u r y B o n d s of 1951-55, d a t e d
S e p t e m b e r 15, 1931, due S e p t e m b e r 15, 1955,
are h e r e b y call e d for r e d e m p t i o n on
S e p t e m b e r 1 5 , 1951, on w h i c h d a t e i n t e r e s t
on s uch b o n d s w i l l cease.

2.

H o l d e r s of these bonds may, in a d v a n c e of
the r e d e m p t i o n date, be o f f e r e d the
p r i v i l e g e of e x c h a n g i n g a ll or a n y p a r t
of t h eih c a l l e d b o n d s for o t h e r int e r e s t b e a r i n g o b l i g a t i o n s of the U n i t e d States,
in w h i c h event p u b l i c n o t i c e w i l l h e r e ­
a f t e r be g i v e n a n d a n o f f i c i a l c i r c u l a r
g o v e r n i n g the e x c h a n g e o f f e r i n g w i l l be
issued.

3.

F u l l i n f o r m a t i o n r e g a r d i n g the p r e s e n t a t i o n
a n d s u r r e n d e r of the bonds for c ash
r e d e m p t i o n u n d e r this call w i l l T5e"found in
D e p a r t m e n t C i r c u l a r No. 6 6 6 , d a t e d
J u l y 21, i9l|l.

J o h n ¥. Snyder,
S e c r e t a r y of the T r e a s u r y
T R E A S U R Y D E P A R TMENT,
W a s h i n g t o n , M a y 1^,1951.

0O0

TREASURY DEPARTMENT

RELEASE, MORNING NEWSPAPERS,
Monday, May lit, 1951._____ __

S-269^

Secretary of the Treasury Snyder announced today the details of the new
Treasury Savings Notes which will be offered for sale beginning May 15, 1951.
The sale of the current Series D Treasury Savings Notes will be discontinued
at the close of business today.
The new series of notes will be designated Series A. They will be dated
the fifteenth of each calendar month and will mature three years thereafter.
As is the case with the Series D savings notes, accrued interest will be
collected from the purchaser from the issue date of the new notes to the day,
inclusive, on which full payment is made in cash or other immediately available
funds. The notes may be purchased from any Federal Reserve Bank or Branch or
from the Treasurer of the United States in Washington.
Interest on the notes will accrue monthly on the fifteenth day of each
month from the issue date, at rates ranging from I.IjU percent if the notes are
held for six months or less to 1.88 percent if the notes are held for the full
three-year. term. They will be available for use in payment of income, estate
and gift taxes imposed by the Internal Revenue Code and assessed against the
owner of the notes or his estate, at par and accrued interest, at any time
after two months from the issue date. They will be redeemable for cash at par
and accrued interest at any time after four months from the issue date, except
in the case of notes inscribed in the name of a bank that accepts demand
deposits. While interest will be credited on notes inscribed in the name of a
bank that accepts demand deposits if presented in payment of taxes, no interest
will be paid either at or before maturity if such notes are redeemed for cash.
The official circular, giving full particulars regarding the notes of the
new series, follows:

UNITED STATES OF AMERICA
TREASURY SAVINGS NOTES
Series A

INDEX TO DEPARTMENT CIRCULAR NO. 889

SUBPART
A

Offering of Notes.

B

Description of Notes.

C

Purchase of Notes.

D

Presentation in Payment of Taxes.

E"

Cash Redemption at or Before Maturity.

... P

G•

Payment or Reissue to Other Than
Inscribed Owner.
General Provisions

UNITED STATES OF AMERICA

430

TREASURY SAVINGS NOTES
Series A

1951
Department Circular No. 889

TREASURY DEPARTMENT,
OFFICE OF THE SECRETARY,
Washington, May 10, 1951.

Fiscal Service
Bureau of the Public Debt
Subpart A:

OFFERING OF NOTES

Sec. 331.1. The Secretary of the Treasury, pursuant to the authority
of the Second Liberty Bond Act, as amended, offers for sale to the people
of the United States, at par and accrued interest as provided in Section
331.12 hereof, an issue of notes of the United States designated Treasury
Savings Notes, Series A, which notes, if inscribed in the name of a
Federal taxpayer, will be receivable as hereinafter provided at par and
accrued interest in payment of income, estate and gift taxes imposed by
the Internal Revenue Code, or laws amendatory or supplementary thereto.
The notes may also be redeemed for cash at par and accrued interest, with
certain exceptions applicable to banking institutions, as provided in
Section 331.16 hereof.•
Sec. 331.2. "Withdrawal of Series D Notes.'— The sale of Treasury Sav­
ings Notes, Series D, offered under Department Circular No. 833, dated
August 17, 1948, as amended, is hereby terminated at the close of business
May 14, 1951.
Sec. 331.3. Duration of offer.:
— The sale of notes of Series A offered
by this circular will begin on May 15, 1951, and will continue until termi­
nated by the Secretary of the Treasury.
Sec. 331.4. Definitions.— (a) The word "month” as used herein means
the period from and including the 15th day of any one calendar month to but
not including the 15th day of the next succeeding month.
(b) The words "issue date" mean the date as of which a note is issued
and will always be the 15th day of a calendar month.
(c) The words "interest accrual date" or "accrual date" mean the date
upon which a month's interest.accrues on a note, the first accrual date
being the 15th day of the calendar month next following the issue date.

Subpart B:

DESCRIPTION OF NOTES

Sec. 331.5. General.— Treasury Savings Notes, Series A, will in
cach instance be dated as of the 15th day of a calendar month. . The issue
bate will be determined by the day of the month on which payment at par
and accrued interest, if any, is received and credited by an agency
authorized to issue the notes. For oxa^olc, payment received and credited

2
on any day during the period from and including Ifay 15, 1951, to and in­
cluding Juno 14, 1951, would result in the issue- of notes dated Lay 15,
1961* They vail mature throe years from that date and may not be called
by the- Secretary of the Treasury for redemption before maturity. All
notes bearing issue dates within any one calendar year shall constitute
a separate series indicated by the letter "A” followed by the year of
maturity. At the time of issue tho issuing agency will inscribe on the
fo.ee of each, note tho name and address of tho owner, will enter tho issue
date and wifi imprint its dating stamp (with current date). Tho notes
will be issued in denominations of $.100» ( 500, $1,000, $5,000, i,10,000,.
$100,000, i500,000 and $1,000,000. Exchange of authorized denomin.' tions
from higher to lower, but nob from'lower to higher, may be arranged.at
any agency that issues Treasury Savings Notes, Series'a .
Sec* 331,6. Acceptance» for taxes or cash redemption,— ‘If inscribed
in the name of an ’individual, corporation, " o r ^ h e r T n B T f y paying in con:,
estate, or gift taxes imposed under the Internal Revenue- Code, or laws
amendatory or supplementary thereto, tho notes will be. receivable, .subject
to the provisions of Section 331.13 of this circular, at par and accrued
interest, in payment of such income, estate or gift taxes assess d against
the owner or his estate. If not presented in payment of taxes, or if not
inscribed in the name of a taxpayer liable to the abovo»doscribed taxes,
end subject to the provisions of Section 331,1$ of this circular, the
notes will bo payable at maturity, or at the owner’s option end request
they will be redeemable before maturity at par and accrued interest,
S-'c. 331,7» Interest♦--Interest on each $1,000 principal amount of
Treasury Savings Notes', Series A , will accrue monthly* on the 15th calendar
day of each month after the issue date on a graduated scale, as follows:
First to Sixth months, inclusive.... ..............¿1,20 each month.
Seventh to Twelfth months, inclusive ..............1,50 each month •
Thirteenth to Eighteenth months, inclusive
,$1.60 each month.
Nineteenth to Twenty-fourth months, inclusive..... 1-1.70 each month.
Tva-nty-fifth to Thirty-sixth months, inclusive.... 41.80 each month.
The table appended to this circular shows for notes of each denomination,
for each consecutive month after issue date, to maturity, (a) the amount of
interest accrual, (b) tho principal amount of the note with accrued interest
(cumulativo) added, and (c) the approximate investment yields. Subject to
the provisions of Sections 331.¿5 and 331.16 hereof, when Treasury Savings
Notes, Series a , arc to oc paid on cm interest accrual dato, the•payment'
will include interest accruing on that dato; otherwise, interest will be
paid only to the interest accrual date next preceding the date- of payment«.
Inter-st will be paid only with the principal amount, and will not accrue
beyond the maturity date of the note.
Sec, 331,8, Forms of inscription.--Treasury Savings Notes, Series A,
may oc inscribed in tlv name of an individual, corporation, unincorporated
association or society, or a fiduciary (including trustees under a duly
established trust whore th<~ notes would, not be held as security for the
performance of a duty or obligation),-whether or not the inscribed owner
is subject to taxation under the Internal Revenue Code, or laws amendatory
or supplementary thereto. They may also b< inscribed in the name of a
town, city, county or State or other governmental body and in the name of

431

T

a partnership, but notes in the name of a partnership are not acceptable
in payment of taxes, since a partnership is not a taxpaying entity under
the Internal Revenue Code* The notes will not be inscribed in the names
of two or more persons as joint owners or coowners; or in the name of a
public officer, whether or not named as trustee, where the notes would in
effect be held as security for the performance of a duty or obligation#
Sec. 331.9. Nontransferability*— The notes may not be transferred in
ordinary course; except that (1) if inscribed in the name of a married man
they may be reissued in the name of his wife, or if inscribed in the name
of a married woman they may be reissued in the name of her husband, upon
request of the person in whose name the notes are inscribed and the sur­
render of the notes to the agency that issued them; (2) if inscribed in
the name of a corporation owning more than 50 percent of the stock, with
voting power, of another corporation, the notes may be reissued in the name
of the subsidiary upon request of the corporation and surrender of the
notes to the agency that issued them; (3) upon the death or disability of
an individual inscribed owner or the dissolution, consolidation or merger
of a corporation, unincorporated association or partnership named as owner,
reissue or payment may be made in accordance with Sections 33}..22 and
331.23 hereof; and (4) payment but not reissue, may be made as a result of
legal proceedings as set forth in Sections 331.24 and
The
,25 hereof,
notes may not be hypothecated and no attempted hypothecation or pledge as
security will be recognized by the Treasury Department: Provided, however,
That the notes may be pledged as collateral for loans from"banking Institutions and if title thereto is acquired by a bank because of the failure of
a loan to be paid, the notes will be redeemed at par and accrued: interest
to the interest accrual date next preceding the date of such acquisition,
unless acquired on an interest accrual date, on surrender to the agency
which issued them, accompanied by proof of the date of acquisition and by
request of the pledgee under power of attorney given by the pledgor in
whose name the notes are inscribed. The notes will not be transferred to
a pledgee
The notes will not be acceptable to secure deposits of public
moneys•
Sec. 331.10. Taxation.--Income derived from the notes shall be subject
to all taxes now or"liereaTter imposed under the Internal Revenue Code or
law's amendatory or supplementary thereto. The notes shell be subject to.
estate, inheritance, gift or other excise taxes, whether Federal or State,
tut shall be*, exempt from all taxation now or hereafter imposed on the
principal or interest thereof by any State, or any of m e possessions o:
the United States, or by any local taxing authority.

art C:

PURCHASE OF

l add ition to the T reasury ■ Do partment, the Federal Reserve Banks and thei] ' Bra neh es are he rob y desi gna ted
agencies for the issue and redemption of Tree. sury Sa vings T.Totos, Sor ies À.
The Secretary of the Treasury, from time to t ime, in his di scrotion , may
e;» or f or accept ing
designate other agencies for the issue oJ‘ the .note û
applications therefor, or for making payr tents on a cc ount of the -re dem ption
thereof.

Src* 331.12. Applications and payim nt .- -Appi ic Txti on g will be re ceivod
by the Federal Reserve Banks and Branchei "~nd by tho Trea su rer of the

4

433

United States, Washington, D. C. Banking institutions generally may submit
applications for the account of customers but only the Federal Reserve Banks
their Branches and the Treasury Department are authorized to act as official'
agencies. The use of an official application form is desirable but not
necessary. Such forms may be obtained upon request from any Federal Re­
serve Banker Branch or the Treasurer of the United States. Every'applica­
tion must be accompanied by payment in full, at par and accrued interest,
l£ anf* The amount of accrued interest payable by the purchaser will be
.computed at the rate at which interest accrues on the notes {$1.20 per
montn per * 1,000 par amount) for the actual number of days from but not
including the issue date to and including the date funds are credited to
the account of the Treasurer of the United States. For example, if funds
are credited on the 20th day of January the issue date will be January 15,
and five days» accrued interest must be paid by the purchaser. If collection is delayed so that credit is not given until February 15, the issue
date will be February 15, and no accrued interest will be collectible. One
ay s accrued interest for a thirty-one day period is $0*03871 per $ 1 ,000,
' fn1" S 1Fty dfy Period k ° « 04 Per $1,000, for a twenty-nine day period
■¿0,0413a per *1 000, and for a twenty-eight day period $0.04286 per $1,000.
Any form of exchange, including personal checks, will be accepted, subject
o collection, and should be drawn to the order of the Federal Reserve
Am

Hrn,t^ TreaS! f ^ ° i the United States, as payee, as the case may be.
s
^-fied pursuant to the provisions of Treasury Department
Circular ho. 92, Revised, as. amended, will bo permitted to make payment *
by credit for notes applied for on behalf of itself or its customers up
to any amount for which it shall be qualified in excess of existing
deposits.f
°

lZ1'1S- Reservations .--The Secretary of the.' Treasury reserves
issue fr n rm itJt ’
&PPf f tion la
or in 'p*rt. and to refuse to
issue or permit to be issued hereunder any notes in any case or in anv
class or classes of eases if he deems such action to be in the public"
interest, and his action in any such respect shall be final, if an npplibe refunded!0'

°d ’ ln T!h010 °r iD part* any Payment received therefor will

See. 331.14.

Delivery of notes.— Upon acceptance of a full-paid

Willie do v
“f l 613 dUiy insoribed and* «»less delivered in person,
delivered, at the risk end expense of the United States at the
,.
ss
y he purchaser, by mail, but only within the United States
its Territories and Island Possessions, and the Canal Zone. No deliveries
elsewhere will be made,
ueeiv„ries

Subpart D:

PRESENTATION IN PAYMENT OF TAXES

an„J J?°* 53 k 15- At any time after two months from the issue date, during
£ * !Te
UndGr SUOh rulos and ro6ulations as the Commissioner of
or!s^-$ Hovy uo'.with th& approval of the Secretary of the Treasury, may
? ’ 0 lbe’ notos issued hereunder in the name of a Federal taxpever
bo presented by such taxpayer, his agent or his estate for credit "¡aiSt
profits00?! (T

“ d !a°k ’ pers°nal 01111 oorPoration taxes, and efaess
°r “ y/ f al °r Sift
(current and back) imposed by
assess^ ? a
?°d°'.°r
“
atory or supplementary thereto,
-ssessed against the inscribed owner or his estate. For example, a note

- 5 dated January 15 may be presented for credit against taxes due March 15.
The notes will be receivable by the Collector at par and accrued interest
to the day (but no accrual beyond maturity) when the taxes are due, if
such day falls on the 15th day of a calendar month, whether the rotes are
received on or before'that day. If the taxes are due on any other day of
the month than the 1.5th, accrued interest will be credited to the accrual
date next preceding the day when the taxes are due. Notes are receivable
only in payment of taxes equal to or exceeding the entire value of the
notes, including accrued interest. _ The notes must be forwarded to the
Collector at the risk and expense of the owner and, for his protection
should be forwarded by registered mail, if not presented in person.

Subpart E:

CASH REDEMPTION AT OR BEFORE MATURITY

Sec. 331.16. General. Any Troasury Savings Note, Series A, not pre­
sented m payment o^Taxes will be paid at maturity, or, at the option and
rccuest of the owner, and without advance notice, will be redeemed before
maturity, at any time after four months from the issue date. For examolc.
a note dated January 15 may be redeemed for cash on or after May. 15. if
redemption prior to maturity is requested on an interest accrual date the'
redemption will include interest accruing on that date,*otherwise redemp­
tion will oe at par and accrued interest to the interest accrual date next
preceding the redemption date, except in the case of a note inscribed in
the name of a bank that.accepts demand deposits, in which case payment,
whether at or before maturity, will be made only at par, with a refund of
any accrued interest which may have been paid at the time of purchase
notG*
a note is acquired by a banking institution through for­
feiture of a loan, payment will be made at par and the accrued interest
payable as of the ciate of acquisition.

5fl a -7 \ ^ ^ : ± 2 n _ o fjrequvst for payment,— The owner in whose
name the note is inscribed must appear oefore one of the officers author­
ized by the Secretary of the Treasury to‘witness and certify requests for
payment, establish his identity, and in the presence of such officer sign
¡Jr complete the request for payment appearing on the back of the note.
After tne request for payment has been executed, the witnessing officer
should execute the certificate provided for his use.
A-M
£i£LC-lIs. authorized to certify requests for payment. ~
Ali^ officers authorized to. cortiryToqucsts for poynent of United"Stores
- ings Bonds, as set forth in Treasury Department Circular No. 530, Sixth
redemntinria % AT
, arG
r'uth3rized to certify requests for cash
mption of Treasury savings notes issued under this circular. Such
^ i t e d States postmasters, certain other
^ fT
1TC^r1^ offlcors of a 11 tanks' and trust companies incor*
d in,
United States or its organized territories, including
o f f e r s at branches thereof, and commissioned and warrant officers of
he Armed I orcos of tho United States.
0TP„„?!!'
'federal I?irU0

B

Presentation and surrender .— Kotos bearing properly
Y P ^ e n t - m u s t bo presented and surrendered to any

K
n
PR BA T h °r t0 th0 Irea“
Pf the United Stated,
i
C " at thc expense and risk of tho o’.mer. For the
pmoniodTnUrTon
* * > " » * * * ** ^ S ^ t e r e d nail, if not

S S r t S
orael“ ;

434

435
6
Sec. 331.20. partial redemption.— Partial cash redemption of a note,
corresponding to an"authorized denomination, may be made in the same
manner as full cash redemption, appropriate changes being made in the
request for payment. In case of partial redemption of a note, the remainder
■will be reissued in the same name and with the same issue d^te as the note
surrendered.
Sec. 331.21. payment.--payment of any note, either at maturity or
redemption before maturity, will be made by any Federal Reserve Bank or
Branch or the Treasurer of the United States, fallowing clearance with the
agency of issue, which will be obtained by the agency to which the note is
surrendered. Unless otherwise instructed, payment will be made *by check
drawn to the order of the owner, and mailed to the address given in his
request for payment.
on

Subpart F:

PAYMENT OR REISSUE TO O T H M THAN INSCRIBED OARER

Sec. 331.22. Death or disability.— In case of the death or disability
of an individual owner, if the notes are not to bo presented in payment of
taxes, payment will be made to the duly constituted representative of his
estate, or they may be reissued to one or more of his heirs or legatees
upon satisfactory proof of their right; but no reissue will be made in two
names jointly or as coowners.
Sec. 351.23. Dissolution or merger of corporations, etc.--If a cor­
poration or unincorporated body in whose name notes ¿ire inscribed is
dissolved, consolidated, merged or otherwise changes its organization,
the notes may be paid to, or reissued in the name of, those persons or
organizations lawfully entitled to the assets of such corporation or body
by reason of such changes in organization.
Sec. 331.24. Bankruptcy•— If- an owner of notes is declared bankrupt
or insolvent, payment, but not reissue, will be made to the duly qualified
trustee, receiver or similar representative if the notes ere submitted with
satisfactory proof of his appointment and qualification.
Sec. 331.25. Creditors’ rights.— Payment, but not roissuo, will be
made as a result of judicial,proceedings in & court of competent jurisdic­
tion, if tho notes are submitted with proper proof of such proceedings and
their finality.
Sec. 331.26. Instructions and information.— Before executing the
request for payment or submitting blic notes under the provisions of this
subpart, instructions should be obtained from a Federal Reserve Bank or
Branch or from the Treasury Department, Division of Loans and Currency,
Washington 25, D. C.

Subpart G:

GENERAL PROVISIONS

Sec. 331.27. Regulations.--Except as provided in this circular, the
notes issued hereunder will be subject to the general regulations of the
Treasury Department, now or hereafter prescribed, governing bonds and notes

436
- 7 of the United States; the regulations currently in force are contained in
Department Circular No. 300, as amended.
Sec. 331.28. Loss, theft or destruction.— In case of the loss, theft
or destruction of a savings "note immediate notice (which should include a
full description of the note) should be given the agency which issued the
note and instructions should be requested as to the procedure necessary to
secure a duplicate.
Fiscal agents *— Federal Reserve Banks and their Branches »
Sec.
as fiscal agents of the"United States, are authorized to perform such ser­
vices or acts as may be appropriate and necessary under the provisions of
this circular and under any instructions given by the Secretary of the
Treasury, and they may'issue interim receipts pending delivery of the
definitive notes.
Sec. 331.30. Amendments.— The Secretary of the Treasury may at any
time or from time to time supplement or amend the terms of this circular,
or of any amendments or supplements thereto, and may at any time or from
time to time prescribe amendatory rules and regulations governing the offer­
ing of the notes, information as to v/hich will promptly be furnished to the
Federal Reserve Banks.

E. H. Foley,
Acting Secretary of the Treasury.

Treasury Savings Notes - Series A
Table of Tax-Payment or Redemption Values and Investment Yields
The table below shows for each month from issue date to maturity date the amount of interest accrual; the principal amount with accrued interest added,
for notes of each denomination; the approximate investment yield on the par value from issue date to the 15th of each month following the issue date; and
the approximate investment yield on the current redemption value from the 15th of the month indicated to the maturity date.
Note: The word "month" as used in this table means the period from and including the 15th day of any one calendar month to-but not including the 15th

Par value

$100.00 $500.00 $1,000.00 $5,000.00 $10,000.00

Amount of interest accrual each
month after issue month

Tax-payment or redemption values during each

Interest accrues at rate of $1.20 per month
per $1,000 par amount:
First month.***...
.$100.12 $500.60 $1,001.20 $5,006.00 $10,012.00
Second month.*..***.
100.24 501.20 1,002.40 5,012.00 10,024.00
Third month......
100.36 501.80 1,003.60 5,018.00 10,036.00
Fourth month.*....
100.48 502.40 1,004.80 5,024.00 10,048.00
Fifth month.... .
100.60 503.00 1,006.00 5,030.00 10,060.00
Sixth month*••••••••
100.72 503.60 1,007.20 5,036.00 10,072.00

Approximate Approximate
investment investment
$100,000.00 $500,000.00 $1,000,000.00. yield on
:yield on current
par value :tax-payment or
from issue :redemption
date to
:values from
beginning of:beginning of
monthly period after issue month 1/
each monthly:each monthly
period
:period to
thereafter :maturitv
Percent
Percent
1.88 2/
$100,120.00 $500,600.00 $1,001,200.00
1.44
1.89
100,240.00 501,200.00 1,002.400.00
1.90
1.44
100,360.00 501,800.00 1,003,600.00
1.44
1.91
100,480.00 502,400.00 1,004,800.00
1.44
1.93
100,600.00 503,000.00 1,006,000.00
1.44
1.95
100,720.00 503,600.00 1,007,200.00
1.96
1.44

Interest accrues at rate of $1.50 per month
per $1,000 par amount:
Seventh month.••••••
Eighth month........
Ninth month...••••••
Tenth month......
Eleventh month... .
Twelfth month.••••••

100.87
101.02
101.17
101.32
101.47
101.62

504.35
505.10
505.85
506.60
507.35
508.10

1,008.70
1,010.20
1,011.70
1,013.20
1,014.70
1,016.20

5,043.50
5,051.00
5,058.50
5,066.00
5,073.50
5,081.00

10,087.00
10,102.00
10,117.00
10,132.00
10,147.00
10,162.00

100,870.00
101,020.00
101,170.00
101,320.00
101,470.00
101,620.00

504,350.00
505,100.00
505,850.00
506,600.00
507,350.00
508,100.00

1,008,700.00
1,010,200.00
1,011,700.00
1,013.200.00
1,014,700.00
1,016,200.00

1.49
1.53
1.56
1.58
1.60
1.61

1.97
1.97
1.98
1.99
2.00
2.01

Interest accrues at rate of $1.60 per month
per $1,000 par amount:
Thirteenth month....
Fourteenth month*•••
Fifteenth month.•*.*
Sixteenth month.••••
Seventeenth month*••
Eighteenth month....

101.78
101,94
102.10
102.26
102.42
102.58

508.90
509.70
510.50
511.30
512.10
512.90

1,017.80
1,019.40
1,021.00
1,022.60
1,024.20
1,025.80

5,089.00
5,097.00
5,105.00
5,113.00
5,121.00
5,129.00

10,178.00
10,194.00
10,210.00
10,226.00
10,242.00
10,258.00

101,780.00
101,940.00
102,100.00
102,260.00
102,420.00
102,580.00

508,900.00
509,700.00
510,500.00
511,300.00
512,100.00
512,900.00

1,017,800.00
1,019,400.00
1,021,000.00
1,022,600.00
1,024,200.00
1,025,800.00

1.64
1.65
1.67
1.68
1.70
1.71

2.01
2.02
2.02
2.03
2.04
2.05

Interest accrues at rate of $1.70 per month
per $1,000 par amount:
Nineteenth month•*••
Twentieth month.•*••
Twenty-first month..,
Twenty-second month.,
Twenty-third month..,
Twenty-fourth month.,

102.75
102.92
103.09
103.26
103.43
103.60

513.75
514.60
515.45
516.30
517.15
518.00

1,027.50
1,029.20
1,030.90
1,032.60
1,034.30
1,036.00

5,137.50
5,146.00
5,154.50
5,163.00
5,171.50
5,180.00

10,275.00
10,292.00
10,309.00
10,326.00
10,343.00
10,360.00

102,750.00
102,920.00
103,090.00
103,260.00
103,430.00
103,600.00

513,750.00
514,600.00
515,450.00
516.300.00
517,150.00
518,000.00

1,027,500.00
1,029,200.00
1,030,900.00
1,032,600.00
1,034,300.00
1,036,000.00

1.72
1.73
1.75
1.76
1.77
1.78

2.05
2.05
2.06
2.06
2.07
2.07

Interest accrues at rate of $1.80 per month
per $1,000 par amount:
Twenty-fifth month..,
Twenty-sixth month.., .............. ..
Twenty-seventh month.
Twenty-eighth month.«
Twenty-ninth month...
Thirtieth month.••••.
Thirty-first month... ................................
Thirty-second month.,
Thirty-third month...
Thirty-fourth month..
Thirty-fifth month...
Maturity... .

103.78
103.96
104.14
104.32
104.50
104.68
104.86
105.04
105.22
105.40
105.58
105.76

518.90
519.80
520.70
521.60
522.50
523.40
524.30
525.20
526.10
527.00
527.90
528.80

1,037.80
1,039.60
1,041.40
1,043.20
1,045.00
1,046.80
1,048.60
1,050.40
1,052.20
1,054.00
1,055.80
1,057.60

5,189.00
5,198.00
5,207.00
5,216.00
5,225.00
5,234.00
5,243.00
5,252.00
5,261.00
5,270.00
5,279.00
5,288.00

10,378.00
10,396.00
10,414.00
10,432.00
10,450.00
10,468.00
10,486.00
10,504.00
1 0 ,5 22.0 0
10,540.00
10,558.00
10,576.00

103,780,00
103,960.00
104,140.00
104,320.00
104,500.00
104,680.00
104,860.00
105,040.00
105,220.00
105,400.00
105,580.00
105,760.00

518,900.00
519,800.00
520,700.00
521,600.00
522,500.00
523,400.00
524,300.00
525,200.00
526,100.00
527,000.00
527,900.00
528,800.00

1,037,800.00
1,039,600.00
1,041,400.00
1,043,200.00
1,045,000.00
1,046,800.00
1,048,600.00
1,050,400.00
1,052,200.00
1,054,000.00
1,055,800.00
1,057,600.00

1.79
1.80
1.81
1.82
1.83
1.84
1.85
1.85
1.86
1.86
1.87
1.88

2.07
2.07
2.07
2.07
2.07
2.06
2.06
2.06
2.06
2.06
2.05

1/ Not acceptable in payment of taxes until after the second month from issue date, and not redeemable for cash until after the fourth month from
issue date*
2/ Approximate investment yield for entire period from issue date to maturity*

t i n

n*gr 7* 1951

TO MR, BABTf&Ts
The following transactions were made in direst and guaranteed
securities of the Government for Treasury investment and other
accounts during the south of April, 1951*
* * . *

$ 18, 911,000

Sales * * * * • # • * * *•#*•** *

10«Sbl»000

Purchases • « • * * # «

let purchases • • « * • » • « *

$ 8 ,370,000

{%d*} I, o* Barnes
Chief, Division of lavestments

5

Wisecarver 5/7/51

2

*1 $

TREASURY DEPARTMENT
Information Service

WASHINGTON, D .C .

439

REIEASE MORNING NEWSPAPERS,
Tuesday,.May .15, 1951.

S -2695

During the month of April 1 9 5 1 ,
market transactions in direct and
guaranteed securities of the Government
for Treasury investment and other accounts
resulted in net purchases of $8 ,3 7 0 ,0 0 0 , *
Secretary Snyder announced today.

0O0

mm&rn,

m m m

newspapers ,

Tuesday, Hay 1$, 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 May 17 and to
mature August 16, 1£>1, which were offered on May 10, were opened at the Federal
Reserve Banks on May H u
The details of this issue are as follows i
Total applied for - $1,865,807,000
Total accepted
- 1,100,696,000
Average price

(includes $11$,10$,000 entered on a
non-competitive basis and accepted in
full at the average price shown below)
- 99*589 Equivalent rate of discount approx. 1.626# per annua

Range of accepted competitive bids«
High
Low

** 99*6 25 Equivalent rate of discount approx. 1.1*81$ per annua

** 99*586

*

»

#

ti

»

1,638# *

(99 percent of the amount bid fear at the leer price was accepted)
Federal Reserve
District

Total
Applied for

Total
Accepted

Boston
Hew fork
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St* Louis
Minneapolis
Kansas City

|

I

Dallas
San Francisco

TOTAL

8 ,5 1 3 .0 0 0
1,U30,22U,000
30.7U 8.000
52.U 88.000
8 ,6 0 7 ,0 0 0
15.20U .000
i78.U8i.ooo
20,61*1,000
U,889,000
3 9 ,8 8 5 ,0 0 0
1U,530,000

8,513,000
715,669,000

l5,7U8,ooo
52,U63,ooo
8,597,000
1U.20U.000
1U6,261,000

19,U85,ooo

61,597.000

U,889,000
38,885,000
1U,5 3 0 , 000
61.UU7.000

$ 1 , 865 , 807,000

$1,100,696,000

«

TREASURY DEPARTMENT
Information Service

WASHINGTON,

441

RELEASE MORNING NEWSPAPERS,
Tue sday, May 1 5 , 1951*_____

S -2 6 9 6

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 May 17' and to mature August l6 ,, 1951* which were offered
on May 10, were opened at the Federal Reserve Banks on May 14.
The details of this issue are as follows:
Total applied for - $1,865,807*000
Total accepted
1 ,1 0 0 ,6 9 6 ,0 0 0 (includes $1 1 5 ,1 0 5 ,0 0 0 entere
on a non-competitive basis
a n d !accepted in full at the
average price shown below)
Average price
- 99-589 Equivalent rate of d„iscount approx.
1 .626$ per annum
Range of accepted competitive bids:
High

- 9 9 .6 2 5 Equivalent rate
1.484$
- 99.586 Equivalent rate
1 .638$

Low

of discount approx.
per annum
of discount approx.
per annum

(99 percent of the amount bid for.at the low price was accepted)
Federal Reserve
Dlstrict
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapölis
Kansas City
Bailas
San Francisco

Total
Applied for
$

TOTAL

8 ,5 1 3 ,0 0 0
1,430,224,000
30,748,000
52,488,000
8 ,6 0 7 ,0 0 0
15,204,000
1 7 8 ,4 8 1 ,0 0 0
20,641,000
4 ,8 8 9 ,0 0 0
3 9 ,8 8 5 ,0 0 0
14,530,000
6 1 ,5 9 7 ,0 0 0

$1 ,8 6 5 ,8 0 7 ,0 0 0

0O0

Total
Accepted
$

-8 ,5 1 3 ,0 0 0
715*669,000
15,748,000
52,468,000
8*597*000
14,204,000
146,261,000
19*485,000
4'8 8 9 ¡0 0 0
3 8 ,8 8 5 ,0 0 0
14,530.000
61,447,000

$1 ,1 0 0 ,6 9 6 ,0 0 0

- 3 -

any State, or any of the possessions of the United States, or by any local tax­
ing authority.

For purposes of taxation the amount of discount at which

Treasury bills are originally sold by the United States shall be considered to
be interest.

Under Sections

bZ and

117 (a) (1) of the Internal Revenue Code,

as amended by Section ll£ of the Revenue Act of 19Ul, the amount of discount at
which bills issued hereunder are sold shall not be considered to accrue until
such bills shall be sold, redeemed or otherwise disposed of, and such bills are
excluded from consideration as capital assets.

Accordingly, the owner of

Treasury bills (other than life insurance companies) issued hereunder need in­
clude in his income tax return only the difference between the price paid for
such bills, whether on original issue or on subsequent purchase, and the amount
actually received either upon sale or redemption at maturity during the taxable
year for which the return is made, as ordinary gain or loss.
Treasury Department Circular No. Ul8, as amended, and this notice, prescribe
the terms of the Treasury bills and govern the conditions of their issue.
of the circular may be obtained from any Federal Reserve Bank or Branch.

Copies

- 2 -

unless the tenders are accompanied by an express guaranty of payment by an in­
corporated bank or trust company.
Immediately after the closing hour, tenders will be opened at the Federal
Reserve Banks and Branches, following which public announcement m i l be made by
the Secretary of the Treasury of the amount and price range of .accepted bids.
Those submitting tenders will be advised of the acceptance or rejection thereof.
The Secretary of the Treasury expressly reserves the right to accept or reject
any or all tenders, in whole or in part, and his action in any such respect shall
be final.

Subject to these reservations, non-corapetitive tenders for ¡)200,000

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

Settlement for

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

May 2k, 1951
, in cash or other immediately avail--------- 2XCS
«ax--------V

J

able funds or in a like face amount of Treasury bills maturing
Cash and exchange tenders will receive equal treatment.

May 2li. 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.

J

The income derived from Treasury bills, whether interest or gain from the
sale or other disposition of the bills, shall not have any exemption, as such,
and loss-from the sale or other disposition of Treasury bills shall not have any
special treatment, as such, under the Internal Revenue Code, or laws amendatory
or supplementary thereto.
gift

The bills shall be subject to estate, inheritance,

or other excise taxes, whether Federal or State, but shall be exempt from

all taxation now or hereafter imposed on the principal or interest thereof by

ijgiiiflttxì
ALPHA
TREASURY DEPARTMENT
Washington

jy

FOR RELEASE, MORNING NEWSPAPERS.

Thursday. Mai 17. 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
IBSx
zS
to be issued on
in exchange for Treasury bills maturing
May 2k, 1951
■W
a discount basis under competitive and non-competitive bidding as hereinafter
provided.
will mature
interest.

The bills of this series vail be dated

August 23 a 19f>l

and

May 2it. 195>1

, when the face amount will be payable without

They Will be issued in bearer form only, and in denominations of

$1 ,000, $£,000, $10 ,000, $100,000, $£0Q,000, and $1 ,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the

Daylight Saving
closing hour, two o ’clock p.m., Eastern>&bsacfcaBdctime, Monday. ~

21T 19Cl

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 10 0 , v/ith 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 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 frcm 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,

TR EA SU R Y DEPARTME
Information Service

RELEASE M O R N I N G NEWSPAPERS,
Thursday, M a y 17, 1951.

444
s-2697

The Secretary of the Treasury, by this public notice, invites
tenders for $ 1 , 1 0 0 , 0 0 0 , 0 0 0 ^ or thereabouts, of 91-clay Treasury bills,
for cash and in exchange for Treasury bills maturing May 24, 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 May 24, 1951, and will mature August 23, 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 Daylight Saving
time, Monday, May 21, 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 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 not be p e r m i t t e d to submit
tenders exce p t for their o wn account.
T e n d e r s w i l l be r e c e i v e d w i t h ­
out d e p osit from i n c o r p o r a t e d banks a nd trust companies and fro m
responsible a nd r e c o g n i z e d .dealers in i n v e s t m e n t securities.
T e n ders
from others m u s t be a c c o m p a n i e d b y p a y m e n t of 2 p e r c e n t of the face
amount of T r e a s u r y bills a p p l i e d for, unless the tenders are
accompanied by a n express g u a r a n t y of p a y m e n t b y a n I n c o r p o r a t e d b a n k ’
T
or trust company.
I m m e d i a t e l y a f t e r the c l o s i n g hour, tenders w i l l be o p e n e d at .
the F e d e r a l R e s e r v e B a n k s a nd Branches, f o l l o w i n g w h i c h p u b l i c
announcement w i l l be m a d e b y the S e c r e t a r y of the T r e a s u r y of the
amount and price range of a c c e p t e d b i d s . Those s u b m i t t i n g tenders
will be a d v i s e d of the a c c e p t a n c e or r e j e c t i o n thereof.
The
Secretary of the T r e a s u r y e x p r e s s l y re s e r v e s the r i ght to a c c e p t or
reject a n y or a ll tenders, in w h o l e or in part, a nd his a c t i o n in
any such re s p e c t sh^ll be final.
Subject to these reser v a t i o n s ,
non-competitive tenders for $ 2 0 0 , 0 0 0 or less w i t h o u t s t a t 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 price
(in three d e c imals) of a c c e p t e d c o m p e t i t i v e bids.
S e t t l e m e n t for

m

2
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 M a y 2k, 1 9 5 1 , in cash-or
o t h e r i m m e d i a t e l y a v a i l a b l e funds or in a like face a m o u n t of Treasu:
bills m a t u r i n g M a y 2k, 1951.
Cash and e x c h a n g e tenders wil l receive
e q ual treatment.
Cash a d j u s t m e n t s w i l l be m a d e for d i f f erences
b e t w e e n the p a r value of m a t u r i n g bills a c c e p t e d in ex c h a n g e and the
issue p r ice of the n e w bills.
The income d e r i v e d fro m T r e a s u r y bills, w h e t h e r i n t e r e s t or gaii
fro m the sale or o t her d i s p o s i t i o n of the bills, shall n ot hav e any
exemption, as such, and 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 lls shall not h a v e a n y sp e c i a l treatment, as such, under
the I n t e r n a l R e v e n u e Code, or laws a m e n d a t o r y or s u p p l e m e n t a r y
thereto.
The bills shall be subject to estate, inheritance, gift or
o t h e r e x cise taxes, w h e t h e r F e d e r a l or State, but shall be exempt
from al 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 o s e d on the p r i n c i p a l or
int e r e s t t h e r e o f b y a n y State, or a n y of the p o s s e s s i o n s of the
U n i t e d States, or b y a n y local t a x i n g authority.
F o r purposes of
t a x a t i o n the a m o u n t of d i s c o u n t at w h i c h T r e a s u r y b i lls are
o r i g i n a l l y sold b y the U n i t e d States shall be c o n s i d e r e d to be
interest.
U n d e r S e c tions k2 a nd 1 1 7 (a) (l) of t h e I n t e r n a l Revenue
Code, as a m e n d e d b y S e c t i o n 115 of the R e v e n u e A c t of 1 9 4 1, the
a m o u n t of d i s c o u n t at w h i c h bills i s s u e d h e r e u n d e r are sold shall
not be c o n s i d e r e d to a c crue u n t i l such bills shall be sold, redeemed
or o t h e r w i s e d i s p o s e d of, and such b i lls are e x c l u d e d f rom c o n s i d ­
e r a t i o n as ca p i t a l assets.
A c c o r d i n g l y , the o w n e r of T r e a s u r y bills
(other t h a n life ins u r a n c e companies) i s s u e d h e r e u n d e r n e e d include
in his I n c o m e tax r e t u r n o n l y the d i f f e r e n c e b e t w e e n the price paid
for such bills, 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 purchase,
a nd the a m o u n t a c t u a l l y r e c e i v e d e i t h e r u p o n sale or r e d e m p t i o n at
m a t u r i t y d u r i n g the taxable y e a r for w h i c h the r e t u r n is made, as
o r d i n a r y g a i n or loss.
T r e a s u r y D e p a r t m e n t C i r c u l a r No. 4l8, as amended, a nd this
notice, p r e s c r i b e the terms of the T r e a s u r y bills a nd g o v e r n the
cond i t i o n s of the.ir issue.
Copies of the ci r c u l a r m a y be obtained
f r o m a n y F e d e r a l R e s e r v e B a n k or Branch.

0 O0

needful action until it is too late
for that action to be fully effecti

fie have kept them there*

#e

tninK our governmental system is
the best in the world.

I have

every confidence that our
wi l l

fulfill

responsibi Iiti

military program without impairing
its internal strength or its
ability to supply essent ia I civilian
needs.
The real threat is that we may
not individually recognize the vital
importance of the cause to which we
are dedicated; that we may not
individual Iy resolve to
make the
$
necessary sacrifices soon enough;
and that we may postpone or delay

In closing, perhaps I can sum
uo the matters whicW ?

lave touches

on this evening in this fashion^
The sound defense of our eco"■nom
our traditional 'inst itut ions , a

isay of

r AsT

life

i

individual responsi1 iiity of every
♦

ï

*

American citizen
threaten us

dangers which
on the dottiest

front are not caused by lack of
ter ia I resources for defense

SIIpi
w

Know that our Nation- is capable of

an achievement of particular
significance in a period of strong
inflationary pressures such as the
,: v

|| ,

| * i* 1

’

|

*

t

present.
As a further measure of prudent
debt management, the Treasury is
beginning an immediate expansion
of Its promotion activities for the
sale of United States savings bonds.
As you know, additional privileges
to tne holders of maturing Series E
savings bonds to retain their

As I have a l r e a d y noted,
r evenues d u r i n g the past f i v e years
.have covered e x p e n d i t u r e s and have,
in a d d i t i o n ,

l e f t a s u r p l u s of over

9
$7 b i l l i o n .

T.hfts s u r p l u s and a

p a r t of the T r e a s u r y ' s wartime cash
b al anc e have been a p p l i e d to debt
reduction.
y e a r s al one,
Federal

Duri ng the past f o u r
we have reduced

Government s e c u r i t i e s on

the p a r t of the commercial

banking

system by more than $11 b i l l i o n

--

t h e - d e b t of the Uni ted St a t e s
Government has been the s i n g l e most
important f a c t o r

in the f i n a n c i a l

l i f e of the Nat i on.

Gur public debt

no % amounts to $255 b i l l i o n .
V. .

. 2 $ ,n.; Vv

' '

y fc

'

' < , ' , v7

, jf

v ‘ v . ; . r o V , :.

/ : ■ *

Thi s
'

■

is

...

approxi mate Iy o n e - h a l f of' the e n t i r e
debt of the c o u n t r y ,

p u b l i c end p r i v a t e

Our p u b l i c debt i s equal to about
f o u r - f i f t h s of the v a l u e of a l l
goods end s e r v i c e s produced by

!

the American economy in a f u l l
year.

.

h e r s t o p r o mo t e

a n * i ng
voluntary

restraints

ant

in

&

ere
.♦ I

I X

081

I ose i I

ftft
sS

\M¿%Sv e r ,
f%

that c r e d i t

:¡®

source oí
for

A

Q

X »

Ö S

i i, v>0

*

individuals

th e fa c t

i s not the only
used

A

comes

inf I at i

r e h i Deh

¡p\m,

liquid

assets

and c o r p o r a t i o n s

are

t o r s i ng in c o o p e r a t i o n with the l oc al
enforcement o f f i c i a l s of our own
communi ti es.

•

I have spoKen at some length
of the need f o r new tax l e g i s l a t i o n and
of the s e r v i c e s o f the T r e a s u r y with
f| \

r e s p e c t to r evenue c o l l e c t i o n ,

because

these mat t er s have a p a r t i c u l a r
urgency a t the p r e s e n t time
The j ob which we must do in
protecting the*finaneiaI
our economy, however,

s t r e n g t h of

involves

c ombat e v a s i o n of the Feder al
r» w

tOA

income

I rs ïte £**■

1 Jp| f f SI «

The Bureau of i nternal - Revenue
ai

11 cont inue to pur- ue every c o u r s e

open to i t f or e n f o r c i n g the Nation*
r venue laws.

Recent event s ,

however, have brought home to every
c i t i z e n the f a c t t h a t c r i me c o n t r o l ,
to be e f f e c t i v e ,
local

level.

must s t a r t at the

Every one of us must

taKe to h e a r t the l es s on t hat the
u p r o o t i n g of c r i me in t h i s c o u n t r y
i s the r e s p o n s i b 1 I i ty of a l l

of us.

ty

•

- 38 -

At my d i r e c t i o n ,

c^-Seec i-e-l—R*ntrd '

J>

-Sec t i o n hos r e c e n t l y been o r g a n i z e d
and gi ven the f u n c t i o n of
i n v e s t i g a t i n g the tax account s of
d

mblers, raCKeteers, and other

members of the c r i m i n a l
_5

class.

by B r i g a d i e r

^ S - e e t - i o - n — i-

General John B

Dunlap,

who has had

more than IT y e ar s e x p e r i e n c e
Internal

Thej^

in the

Revenue S e r v i c e and who

made a d i s t i n g u i s h e d r e c o r d as an
Int

i gene e

i c er dur i ng i o r I d

/
%Jr
0

s su r

Tft#

only an 1nf in t

laV

jm.
£m
IV
I

Q

e d

4
taxpayers due to errors made in good
faith. Where criminal concealment
r.
■
or evasion is suspected, the Bureau
must engage in pa instaxing search
for evidence -- evidence 'which wi
stand up in court.

It 'must dea

with individuals whose lifetime
efforts are directed at Keeping
P n k n ; .

> 'i ;

their operations secret -- and
it must bring such individuals to
just ice
Last year taxes and penalties

SWISS

K6

e-ha If of

e Service’s

entire perso

s type of

checKing of returns i
classified as Mfro
orK.

etnera !Iy
ine enforce

«

I believe that it may surpris

any of you to learn that as a resul
of examination
Jonss of re1:urns a
vesti get Ions În tn 8 last f

W

H lijr

W

e Bureau'of Internal Revenu
assessed $ I,

i II ion of added

revenue

of this sum, of course,

osenteti taxes n
.

y

act iv it
t

carr

revenue

ü

i

$

mi sunaerstandinI
De involved, requires a

wMm
aa*

31
burdens of enforcement would be next
to insurmountabIe --while our tax
revenues in all probability would be
very much less.

It has never been

the policy of the Treasury -- and
it has never been the intent of
our revenue legislation -- that the
tax collectors in this country snould

M

H

B

operate as a Gestapo peering over
the shoulders of every taxpayer.
am sure that none of us
Hrfafl

■

this approach.

I

A l i.
%/

classified.
P

operations of

kAr
9

au add up to the largest financial
business in the world.

But

Iy a part of

reore

ibi Ii ties w i

reso

e Service is
 et

system I
e

V O

S

nano

C ÎI0

In

Bmk m

I

ary

y #lif ch rests
s© If**8ss©ssnient anci payment
#

*

part of individuai citizens.
this cooperation,

#

B

c.

*

C O S

i\
â

ut

29
Bureau will collect over-$50 billion
in taxes and other payments.

The

col lections wi II come from 79
different types of taxes, each one
of which requires appropriate
technioues and administrative
procedures.

The Bureau will

process in the course of this year |§1
90 million tax returns, along with
about 120 rn i 11ion other re 1ated
documents.

Each one of these

indivi dua1 payments must be
separate 1y accounted for and properly
'W.- t;.

responslbiI¡ties entrusted to the
Bureau of Internal Revenue.

They

are little aware of how these
responsibiIities have grown during
very recent years.
The function of the Bureau of
Revenue, as you know, is
\ D

to collect taxes.

In 1940 the

Bureau collected about $5 billion
of revenue.

This, at the time, was

consiaered a tremendous sum.

But

in the fiscal year ending June 30, the

r>r*f

¿1

have the resources -- and we must have
the determination -- to build up our
military strength without subjecting
the great production mechanism of this
country to the continued dangers of
infI at ion.
As citizens and taxpayers, I
know that every one of you has a
vital interest in the job which the
Treasury is doing in protecting
our revenues.

Very few of our

citizens, I believe, are aware of
the magnitude of the

ft"!ft result in a deficit of
approximately $10 billion during the
next fiscal year, ending on June 30,
1952.
Let me emphasize the fact that
4

continuing Government deficit would
provide a condition in which
inflationary forces would flourish.
It would bring a new element of
uncertainty into the financial world
and new hesitations with respect- to
future commitments.

Inevitably, our

productive power would be wesKened.

past periods is a gratifying
c ircumstance.

But we cannot taKe much

comfort for the future from this fact.
For, it cannot be too strongly
emphasized that the current budget
surplus is temporary.

And, it cannot be

too strongly emphasized that without the
additional taxes requested by the
President,

it will be impossible to

meet out of current revenues the
tremendous financial outlay which our
defense program entails.

If we fail to

enact new tax legislation, we must
expect that our current mi I itary program

<m

.

f? <4
■-TWi

surplus of over $3 b i1 lion.

Th is

means tha t we shall cl ose the fiscal
year 1951 w ith the Gov ernment’s
f inances in a relative 1y strong
position

—

—

a position which is

reenforced by our postwar record as
a whole, j.n the past five years,
including the current fiscal year
ending on June 30, revenues will
have exceeded expen 1 itures, on net
balance , byA$7 bill ion.

[h i

surp1us of income over outgo
we have been able t o achieve duri ng
■M'm

o
(/)

Q>

CD

life of our toat ion..
with respect to our

gram and the f unds
’6 resent defense pro’)
which are neede ri to pay for it mane
the problem cry sta 1 clear.

;e must

hava add it iona 1 tax legislation if
we are to Keep the finances of the
Government on a pay -as- we-go
basis.
As you may rno w, we now expect
to end the pres e n t f Ìsea ! year,

closing on June 30, with a budget

without resort to deficit
borrowing.

A continuing deficit

cannot help but add to the
difficulties of holding inflation
in line during a period of
Increasing diversion of our resource
to military purposes.

It cannot

help but vieeKen both the financial
position of the Government and
the ability of our economy to
function with maximum effectiveness
during this critical period in the

responslbi 11 ties.

He must protect

and increase that strength, which
is the mainstay not on Iy of our

own

defense but of the defense against
aggression for the entire free

wor I o
The first essential in assuring
the maintenance of sound economic
conditions is adequate federal
revenues -- revenues which will
enable us to meet all of our
defense bills as they come in

- iQ
opera

S v

a

any previous period in our

E

le mira

'm.

*od

sen ievem

«1

as

ft

r 11

ers ha

fi

discoveries have

n

M U c S

revoI ut ion ized ma
m
O'

"¿i? •

our factor
c p
f uf
w #

W

ffi

f %# W'

lie L H

They have' en a b ie d

our
L .■ e-

ies

h»S
®0

~

? $ i'0 n

it

f*.

Let me tara? a moment to review
the record of what has been happening
within this stronghold of western
defense -- the American economy -~
during the momentous years since
the close of World ftar II.

These

are the facts which our enemies
have been assessing -- and which have
g iven them pause.
Throughout the postwar years, the
production plant of. our Nation has
been modernizing and expanding

entirely a military one,
strict sense of the »orcl,
ir eIy the

in the
It is

tenKS
ich v»e can

ass©mbIe on this side.of the Iron

Uur t b in.

as our enemies sre

well

aggress

from his oppositi
to any
p

er granai

4*

t* V

e

imoer iati

n r

* I%s# a«M» jt«jIr ^sL§r

g

sopea semento or
sc hem e for
t

0r

€1*1

I ft
n
H
I

ienees

! » %s* tir v i O

aggression s

p

%**ir %*#

orla Aar II

ait

* the close of

w

p

if'

rt

iven

fact that
I ill to peace is no 1 eno
desire to v*or k

a

ith others in

promoting peaceful objectives

0

separa te iy into i i i-cons idered
courses of action.

Iff must never

for an instant lose sight of the
fact that the primary battle in
w h i c h we are engaged

is the battle

against the outbreak of a third
world war —

a war which might

shatter civilization.

To win

this battle, the right-thinking
nations of the world must stand
in firm alliance.

future.
if there is one iesson
as t six years wn i
1 1 others,

it is
to resist

eop 1es to worl< to
y ev ery means the

fforts of our

enemies to split tne ranxs
free nations ana to draw them

and knowledge.

Participants from

this country include representatives
from almost every kind of organization
In American community life -- 4-H
Clubs, hotary Clubs, Girl Scouts,
college and university groups, and
leaders with a wide variety of
backgrounds.

In my view,

it is not

possible -to overestimate the
importance of this exchange of thought
ana experience, particularly between
the young people of various nations.

exchange of iaeas and information
on an individual basis has been
making remarkable headway.

Some

of these activities have been
initiated in connection with the
Marshall Plan or other governmental
programs.

But by far the biggest

contribution has been made by
private organizations.

This year,

I am told, such organ 1zations will
have arranged something like 40,000
exchange visitors to share ideas

“ôgrams* the Ms

il Fian,

Point iV program

a id

Greece

S'*v

in Europe for
common action to solve common

a II are evidence that
n ations
OU 1

T " r* m

yy

C W

A

B n

f*

&

for cooperative
hile these d

is h&

been occurring on the national
an important new movement for

internetionaI attention, many other
activities Have been going on which
are less we I i known.

These, too,

are of tremendous import to the
future of mankind.
Thousands of people, speaking
different languages ana with varying
backgrounds ana national beliefs,
have met ana worked together in
friendly groups.

They have worked

to promote better trade relations, to j
further measures for greater health and

-

6

-

;ei>

have struggled -- * ithout success -• •• e'
.

■

■ 'stS

to- unite in peace 'as. we I I as in war.
i ¡h-

/Since the United Nations was
organi7 ed in 194a, the free nations
have learned to worn together.
ley have io inets in comilson a ims.
ley have taxen the graves t step

r si 1 — a comis.on pledge to unit
i the ba tt1ef1e 1d igai nst the

jrces of

1m

•

if
tv‘y* ’*">W 1
“'i
V'n .

But behind the C;

p

f*^ jons, pH

h aV r Q« 8 wn the full spot 1igirt of

formidable indeed.
Today, many of the problems which
loomed so large in 1945 have been
surmounted.

But there are new

issues -- issues so grave that the
truly great achievements of the
United Nations in the six years
since its birth may go unrecogn ized
by many of our people.

To gain a

proper perspective, we need to set
these six years against the many
centuries through which civilized nation

lire to

a Ii over
1

'f* ga ÎWM

T

I I»

In to

ing in

all of u C

that the road on wnich
netting out would not be an
easy one
Àî

tr

worId was still at
Knew that our cause w

I

IM ense
ft ¡cui ties of me ans true t ion,
bili

ion .ana gradua I rebuiluin

of peaceful relations lay

■¿I *1

and these difficulties appear

$

into the fabric of the Nation
To me, it seems especially fitting
that the State of California, which
has contributed so greatly to our
national

life, should have been

the birth place of the United Nations.
For the concept embodied in the
United Nations organization holds
the reaI possibility of bringing
permanent peace and a better way of

rr!

38

I was very pi eased when I
received your invitation to
In the near iy five
ary of

that i have
ssurv,

most

exper»ences
»hi eh i h

i n d i v i duaI s
citi

£?

renewed oe
to our present or

f a i t h

in

i iI bring

TREASURY DEPARTMENT
Washington

The following address by Secretary Snyder
before a dinner meeting of the Los Angeles
Town Hall, Los Angeles, California, is
scheduled for delivery at 7:15 p.m.PDT
(10:15 p.m.EDT). Thursday. May 17. 1951.
and is for release at that time.

A STRONG DEFENSE AND A SOUND ECONOMY

438
TREASURY DEPARTMENT
Washington

The following address by Secretary Snyder
before a dinner meeting of the Los Angeles
Town Hall, Los Angeles, California, is
scheduled for delivery at 7sl5 p>m,PjDT
(10:15 p.m.liiDt)', Thursday, kay 17s 195>1»
¿nd is ror release ai that time»

A STRONG DEFENSE AND A SOUND ECONOMY

I was very pleased when I received your invitation to speak here
tonight. In the nearly five years that I have been Secretary of the
Treasury, my most gratifying experiences have been the contacts which
I have had with individuals and groups of citizens throughout the
Nation. Each one of these contacts gives me renewed faith in the
American people. It gives me renewed belief that we will bring to our
present problems the same energy, the same spirit of honest inquiry,
and the same devotion to the right which has characterized each of
our great national efforts.
I am particularly happy to have this occasion for revisiting the
great civic and industrial center of L q s Angeles. This is a city
which is metropolitan in the truest sense
whose business, educational,
and artistic achievements are woven into the fabric of the Nation.
To me, it seems especially fitting that the State of California, which
has contributed so greatly to our national life, should have been the
birth place of the United Nations. For the concept embodied in the
United Nations organization holds the real possibility of bringing
permanent peace and a better way of life to people all over the world.
When the United Nations came into being in 19k$$ all of us were
aware that the road on which we were setting out would not be an
easy one. The world was still at war. We knew that our cause would
triumph} but the immense difficulties of reconstruction, rehabilitation
and gradual rebuilding of peaceful relations lay ahead; and these
difficulties appeared formidable indeed.
Today, many of the problems which loomed so large in 191*5 have
been surmounted. But there are new issues — issues so grave that the
truly great achievements of the United Nations in the six years since
its birth may go unrecognized by many of our people. To gain a proper
perspective, we need to set these six years against the many centuries
through which civilized nations have struggled
without success — to
unite in peace as well as in war.

S-2698

Since the United Nations was organized in 19k5> the free nations
have learned to work together« They have joined in common aims.
They
have taken the gravest step of all — a common pledge to unite on the
battlefield against the forces of aggression.
But behind these actions, which have drawn the full spotlight of
international attention, many other activities have been going on which
are less well known. These,too, are of tremendous import to the future
of mankind.
Thousands of people, speaking different languages and with varying
backgrounds and national beliefs, have met and worked together in
friendly groups.
They have worked to promote better trade relations,
to further measures for greater health and safety, to extend education,
and to share the fruits of scientific progress. Most important of
all, perhaps, these continuing activities have helped change the
attitude of the entire free world. They have created an atmosphere
which is encouraging to international understanding and to international
exchange of ideas and productive knowledge. The United Nations programs
the Marshall Plan, the Point IV program, the aid to Greece and Turkey,
the many steps forward which have been taken in Europe for common
action to solve common problems — all are evidence that the nations of
the free world are building new and solid foundations for cooperative
progress.
While these developments have been occurring on the national
level, an important new movement for the exchange of ideas and infor­
mation on an individual basis has been making remarkable headway.
Some of these activities have been initiated in connection with the
Marshall Plan or other governmental programs.
But by far the biggest
contribution has been made by private organizations.
This year, I
am told, such organizations will have arranged something like !|0,000
exchange visitors to share ideas and knowledge. Participants from
this country include representatives from almost every kind of
organization in American community life — li-H Clubs, Hotary Clubs,
Girl Scouts, college and university groups, and leaders with a wide
variety of backgrounds.
In my view, it is not possible to over­
estimate the importance of this exchange of thought and experience,
particularly between the young people of various nations.
These
are new ventures — and they can give us all new hope for the future.
If there is one lesson of the past six years which stands out
beyond all others, it is the need of free peoples to work together —
to resist by every means the efforts of our enemies to split the ranks
of the free nations and to draw them separately into ill-considered
courses of action. We must never for an instant lose sight of the fact
that the primary battle in which we are engaged is the battle against
the outbreak of a third world war — a war which might shatter
civilization. To win this battle, the right-thinking nations of the
world must stand in firm alliance.

500

m3

*•

Every American citizen can take pride in the fact that President
Truman was one of the first statesmen of the world to warn against
communist imperialism. As a member of his official family, I can report
to you that the President will not be deterred from his purpose of
working through the United Nations and through every other proper
international channel open to us, to stop the spread of aggression. He
will not be swerved from his opposition to appeasement or to any
other grandiose scheme for encouraging imperialism, anywhere in the
world.
Our actual experiences with aggression since the close of World
War II, however, have driven home to all the grim fact that the will
to peace is not enough. The desire to work with others in promoting
peaceful objectives is not enough.
To keep the peace we must be strong. We must have the physical
means to defend ourselves successfully against a further drive for power
on the part of the communist dictators. This drive is constantly in
the minds and in the plans of the aggressors. At any time, a drive
might be directed against a vital sector of the western world.
Our strongest reliance for defense against any such aggression now
or in the foreseeable future, Is not entirely a military one, in the
strict sense of the word. It is not entirely the number of tanks or
guns or bombs which we can assemble on this side of the Iron Curtain.
As our enemies are well aware, the one uniquely powerful weapon of the
free world is the productive capacity of the American free enterprise
economy,
Let me take a moment to review the record of what has been happening
within this stronghold of western defense
the American economy •during the momentous years since the close of World War II. These are
the facts which our enemies have been assessing — and which have given
them pause.
Throughout the postwar years, the production plant of our Nation
has been modernizing and expanding operations at a pace unknown during
any previous period in our history* Even the miraculous production
achievements of the World War II years have been far outdone. New
techniques and new discoveries have revolutionized many older methods
of doing things. They have enabled our factories
our farms — our
service industries -• to reach new peaks of efficiency and of output.
In the months since the beginning of the Korean war, the tremendous
flow of American production has turned back two waves of scare buying.
It has quieted many fears as to the fundamental capacity of our
economy to supply both military and essential civilian needs.
The productive capacity of the American defense economy is more
than reassuring. At the same time, it emphasizes our responsibilities.
We must protect and increase that strength, which is the mainstay not
only of our own defense but of the defense against aggression for the
entire free world.

501
1

-. * -

The first essential in assuring the maintenance of sound economic
conditions is adequate Federal revenues — revenues which will enable
us to meet all of our defense bills as they come in, without resort
to deficit borrowing, A continuing deficit cannot help but add to the
difficulties of holding inflation in line during a period of increasing
diversion of our resources to military purposes. It cannot help but
weaken both the financial position of the Government and the ability of
our economy to function with maximum effectiveness during this critical
period in the life of our Nation,
The facts with respect to our present defense program and the funds
which are needed to pay for it make the problem crystal clear. We must
have additional tax legislation if we are to keep the finances of the
Government on a pay-as-we~go basis.
As you may know, we now expect to end the present fiscal year,
closing on June 30, with a budget surplus of over |3 billion. This means
that we shall close the fiscal year 1951 with the Governments finances
in a relatively strong position — a position which is reenforced by
our postwar record as a whole. In the past five years, including the
current fiscal year ending on June 30, revenues will have exceeded
expenditures, on net balance, by more than $7 billion. This surplus
of income over outgo which we have been able to achieve during past
periods is a gratifying circumstance. But we cannot take much comfort
for the future from this fact. For, it cannot be too strongly
emphasized that the current budget surplus is temporary* And, it can­
not be too strongly emphasized that without the additional taxes
requested by the President, it will be impossible to meet out of current
revenues the tremendous financial outlay which our defense program
entails. If we fail to enact new tax legislation, we must expect that
our current military program will result in a deficit of approximately
$10 billion during the next fiscal year, ending on June 30, 1952.
Let me emphasize the fact that a continuing Government deficit
would provide a condition in which inflationary forces would flourish.
It would bring a new element of uncertainty into the financial world,
and new hesitations with respect to future commitments. Inevitably,
our productive power would be weakened, ^e have the resources — and
we must have the determination — to build up our militaiy strength
without subjecting the great production mechanism of this country to
the continued dangers of inflation.
As citizens and taxpayers, I know that every one of you has a vital
interest in the job which the Treasury is doing in protecting our
revenues. Veiy few of our citizens, I believe, are aware of the
magnitude of the responsibilities entrusted to the Bureau of Internal
Revenue, They are little aware of how these responsibilities have grown
during very recent years.

502
~ 5The function of the Bureau of Internal Revenue, as you know, is
to collect taxes. In 19^0 the Bureau collected about $5 billion of
revenue. This, at the time, was considered a tremendous sum. But
in the fiscal year ending June 30, the Bureau will collect over $50
billion in taxes and other payments. The collections will come from
79 different types of taxes, each one of which requires appropriate
techniques and administrative procedures. The Bureau will process in
the course of this year some 90 million tax returns, along with about
120 million other related documents. Each one of these individual
payments must be separately accounted for and properly classified.
These routine operations of the Bureau add up to the largest
financial business in the world. But they represent only a part of
the important responsibilities with which the Revenue Service is
charged.
As you know, our tax system is one of a mere handful in the
world today which rests on voluntary self-assessment and payment on
the part of individual citizens. Without this cooperation, the costs
and burdens of enforcement would be next to insurmountable — while
our tax revenues in all probability would be very much less. It has
never been the policy of the Treasury — and it has never been the
intent of our revenue legislation — that the tax collectors in this
country should operate as a Gestapo peering over the shoulders of
every taxpayer. I am sure that none of us want this approach.
The overwhelming majority of American taxpayers are honest and
careful in maki|ig their Federal tax returns. It is necessary for the
protection of this majority, however, that enforcement activities be
carried on with the utmost diligence.
In the course of these activities, collecting the portion of the
revenue in which carelessness, misunderstanding or dishonesty is apt
to be involved, requires almost one-half of the Revenue Serviced
entire personnel. This type of checking of returns is generally
classified as "front-line enforcement” work. I believe that it may
surprise many of you to learn that as a result of examinations of returns
and investigations in the last fiscal year, the Bureau of Internal Revenue
assessed $1 .8 billion of added revenue. Much of this sum, of course,
represented taxes not reported by taxpayers due to errors made in good
faith. Where criminal concealment or evasion is suspected, the Bureau
must engage in painstaking search for^evidence — evidence which will
stand up in court. It must deal with individuals whose lifetime efforts
are directed at keeping their operations secret — and it must bring
such individuals to justice.
Last year taxes and penalties assessed against tax evaders as a
result of fraud investigations alone — including investigations of
professional criminals, gangsters, and racketeers — amounted to the
sum of $258 millionj more than enough, incidentally, to cover the
cost of operating the Bureau for an entire year.

503
•

6

*

I must point out that while investigations are pending, the
Treasury must of necessity avoid any publicity as to their nature or
course* Such publicity would not only violate the statutes which forbid
the discussion of details of tax cases) it would lead to the loss of
evidence necessary to secure criminal conviction*
May I take this occasion to assure you that only an infinitesimal
number of employees of the Revenue Service have deviated from the
strictest standards of conduct and integrity in the performance of their
duties* When such instances have occurred, the individuals concerned
have been dealt with by the Service itself vigorously and sternly.
While the record of law enforcement on the part of the Revenue
Service is an impressive one, we are, of course, always looking for
means of improving it. At my direction, Special Racket Squads have
recently been organized and given the function of investigating the
tax accounts of gamblers, racketeers, and other members of the criminal
class. These Squads are directed by Brigadier General John B. Dunlap,
who has had more than 17 years experience in the Internal Revenue Service
and who made a distinguished record as an Intelligence officer during
World War II. It will be the sole function of General Dunlap and his
staff to plan and carry out a new and vigorous enforcement drive against
the racketeer class.
Just before leaving Washington, I wrote to the Governors of
every state, asking them as a public service to forward to the Treasury
any information obtained by local investigators that might be useful
to the Internal Revenue Service to combat evasion of the Federal income
tax laws.
The Bureau of Internal Revenue will continue to pursue every
course open to it for enforcing the Nation’s revenue laws. Recent
events, however, have brought home to every citizen the fact that
crime control, to be effective, must start at the local level. Eveiy
one of us must take to heart the lesson that the uprooting of crime
in this countiy is the responsibility of all of us, working in cooperation
with the local enforcement officials of our own communities*
I have spoken at some length of the need for new tax legislation
and of the services of the Treasury with respect to revenue collection,
because these matters have a particular urgency at the present time*
The job which we must do in protecting the financial strength of
our economy, however, involves much more than the question of adequate
revenues and effective administration, A broad program aimed at the
conservation of our financial resources -*> both public and private
is required to combat inflation on all fronts.
As a part of this program, restrictions on borrowing in the housing
and consumer credit areas have been put into operation and are having a

noticeable effect. The nationwide program undertaken by banking groups
and others to promote voluntary restraints in the granting of credit
is another important part of the anti-inflationaiy program. We must
not lose sight of the fact, however, that credit is not the only source
of funds which may be used for inflationary spending. Incomes are high,
and the liquid assets of both individuals and corporations are at
record levels. It is clear that the primary need is for each citizen
to determine individually to spend less and save more.
The Treasury has an important part in a:\broad program for conserving
the financial resources of the Nation. In addition to its revenue
functions, it is charged by law with responsibility for the management
of the public debt$ a responsibility, under present circumstances, which
is of a magnitude unprecedented in our financial history.
Since the close of World War II, the debt of the United States
Government has been the single most important factor in the financial
life of the Nation. Our public debt now amounts to $255 billion. This
is approximately one-half of the entire debt of the country, public
and private. Our public debt is equal to about four-fifths of the
value of all goods and services produced by the American economy in a
full year.
As I have already noted, revenues during the past five years have
covered expenditures and have, in addition, left a surplus of over
$7 billion. This surplus and a part of the Treasury's wartime cash
balance have been applied to debt reduction. During the past four
years alone, we have reduced Federal Government securities on the part
of the commercial banking system by more than $ 11 billion — an
achievement of particular significance in a period of strong inflationary
pressures such as the present.
As a further measure of prudent debt management, the Treasury is
beginning an immediate expansion of its promotion activities for the
sale of United States savings bonds. As you know, additional privileges
to the holders of maturing Series E savings bonds to retain their
investments in this form have already been provided by the Congress.
Let me emphasize, however, that the major goal of the Treasury in
its savings bond promotion is not solely to sell more savings bonds.
The program is directed at increasing savings in all forms. If that
is accomplished, a major victory in the battle against inflation will
have been won.
In closing, perhaps I can sum up the matters which I have touched
on this evening in this fashion. The sound defense of our economy, our
traditional institutions, and our American way of life is the individual
responsibility of every American citizen. The dangers which threaten
us today on the domestic front are not caused by lack of material
resources for defense. We know that our Nation is capable of meeting

505
-

8

-

the full demands of our military program without impairing its internal
strength or its ability to supply essential civilian needs.
The real threat is
importance of the cause
individually resolve to
that we may postpone or
that action to be fully

that wre may not individually recognize the vital
to which we are dedicated; that we may not
make the necessary sacrifices soon enough; and
delay needful action until it is too late for
effective.

We have the priceless privilege of living in a free Nation. The
men who founded our Nation placed the responsibilities of government
squarely on the people themselves. We have kept them there. We think
our governmental ¡system is the best in the world. I have every
confidence that our people will ftilfill the new responsibilities of
American citizenship with pride, with devotion, and .with full faith
in the ability of right-thinking nations to reach the goal for which we
all strive — a lasting peace.

0O0

release*

mmim

mm IinI

in

fhe Secretary of the Treasury announced last «veoiag that the tenders for
$1,100,000,000, or thereabouts, of 91-day treasury bills to be dated May 21* and to

sature August 23, 1951, which were offered or* May 17# were opened at the Federal Re­
serve Banks

ox* May

21«

the details of this issue are as follows t
*

total applied for - $1, 899,895,000
total accepted
- 1,100,683,000

Average price

- 99.598

(includes $113,11*2,000 entered on a
non-competitive basis and accepted in
full at the average price shown below)

Equivalent rate of discount appro*. 1.591$ per a i m

Range of accepted competitive bids*
High
Low

- 99.601* Equivalent rate of discount approx. 1.567$ per annum
- 99.596
»
«
1
1
*
1*598$ »
*

(66 percent of the amount bid for at the low price was accepted)
Federal Reserve
District

fötal
Applied

Boston
lew York
Hiiladelphla
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco

I

Total

fo
r

1 6 , 81*1*,000

1, 382, 218,000
3 1 *,1 1 5 ,0 0 0

S3.1Ä*ooo
1 0 ,6 1 *0 ,0 0 0

X7,6?3,aoo

13,78i»,000

717,21*8 ,0 0 0
27,1*15,000
1*8,255,000

10 ,050,000

,

2 3 .9 1 0 .0 0 0
2 1 .8 3 0 .0 0 0

16.673.000
129 961,000
U , 103,000
3,827,000
27.270.000
15.212.000

126.279.000

79.575,000

#1,899,895,000

#1,100,683,000

1 3 6 .9 6 1 .0 0 0

16

,Î * ® , 0 0 0

U.iOS.ooo

TOTAL

I

T R E A S U R Y D E P A R T M E N T ______
Inform ation S e r v ic e

Wa s h i n g t o n ,

d

.

507
REIÆASE MORNING NEWSPAPERS,
Tuesday, M a y 22,

1951.

S - 2Ô99

The S e c r e t a r y of the T r e a s u r y a n n o u n c e d last e v e n i n g that the
tenders for $ 1 , 1 0 0 , 0 0 0 , 0 0 0 , or thereabouts, of 9 1 - d a y T r e a s u r y h i lls
to be d a t e d M a y 24 a n d to m a t u r e A u g u s t 23, 1951* w h i c h wer e o f f e r e d
on May 17, were o p e n e d at the F e d e r a l R e s e r v e B a n k s on M a y 21.
The d e t a i l s of this

issue are as follows:

Total a p p l i e d for - $1,899*895* 000
Total a c c e p t e d
1,100,683,000

Average price

Range

,
(includes $ 1 1 3 * 1 4 2 , 0 0 0 e n tered
on a n o n - c o m p e t i t i v e basis
an d a c c e p t e d in full at the
a v e r a g e p r i c e s h o w n below)
- 9 9 * 5 9 8 E q u i v a l e n t rate of d i s c o u n t approx.
1 .5 9 1 $ p e r a n n u m

of a c c e p t e d c o m p e t i t i v e bids:,
- 9 9 . 6 o 4 E q u i v a l e n t rate
1.567$
- 99.596 E q u i v a l e n t rate
1 .5 9 8 $

High
Low

of d i s c o u n t approx.
per annum
of d i s c o u n t approx.
per annum

(66 p e r c e n t of the. a m o u n t b i d for at the l o w ;price., was accepted)

'$

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

T o tal
Accepted

Total
A p p l i e d for

Federal R e s e r v e
District

16,844,000
1,382,218,000
34,115,000
53, 464,000
10,640,000
1 7 ,6 7 3 , 0 0 0
1 8 6 ,9 6 1 , 0 0 0
1 6 ,4 9 6 , 0 0 0
4,415,000
2 8 ,9 1 0 , 0 0 0
2 1 ,8 8 0 , 0 0 0
1 2 6 ,2 7 9 , 0 0 0

$ 1 ,8 9 9 ,8 9 5 , 0 0 0

0 O0

$

13,784,000
717,248,000
27,415,000
48,255,000
10,050,000
1 6 ,6 7 3 , 0 0 0
1 2 9 ,9 6 1 , 0 0 0
11,413,000
3 ,8 2 7 , 0 0 0
2 7 ,2 7 0 , 0 0 0
1 5 ,2 1 2 , 0 0 0
79,575,000

$ 1 ,1 0 0 ,6 8 3 , 0 0 0

~ 3 -

any State, or any of the possessions of the United States, or by any local tax­
ing authority.

For purposes of taxation the amount of discount at which

Treasury bills are originally sold by the United States shall be considered to
be interest.

Under Sections bZ and 117 (a) (1) of the Internal Revenue Code,

as amended by Section llf> 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. I;l8, as amended, and this notice, prescribe
the terns of the Treasury bills and govern the conditions of their issue.
of the circular may be obtained from any Federal Reserve Bank or Branch.

Copies

-

2

-

unless the tenders are accompanied by an express guaranty of payment by an in­
corporated bank or trust company.
Immediately after the closing hour* tenders will be opened at the Federal
Reserve Banks and Branches, following which public announcement will be made by |
the Secretary of the Treasury of the amount and price range of accepted bids.
Those submitting tenders will be advised of the acceptance or rejection thereof.
The Secretary of the Treasury expressly reserves the right to accept or reject
any or all tenders, in whole or in part, and his action in any such respect shall!
be final.

Subject to these reservations, non-competitive tenders for '£200,000

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

Settlement for

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

May 31, 19f?l
, in cash or other immediately avail-|
-------------- ---------------------v<r
able funds or in a like face amount of Treasury bills maturing May n T 1 ^ 1 I
Cash and exchange ten d ers w i l l r e c e iv e eq u al tre a tm e n t.

Cash adjustm ents w i l l ba

made f o r d iffe r e n c e s between th e par v a lu e o f m aturing b i l l s accep ted i n exchanga
and th e is s u e p r ic e o f the new b i l l s .
The income d e riv e d fr a il Treasury b i l l s , whether in t e r e s t or g a in from the
s a le or other d is p o s it io n o f the b i l l s ,

s h a l l n ot have any exem ption, as such,

and lo s s fr o n th e s a le or other d is p o s it io n o f Treasury b i l l s s h a l l not have any
s p e c ia l tre a tm e n t, as su ch , under the In t e r n a l Revenue Code, or laws amendatory
or supplem entary t h e r e t o .
g ift

The b i l l s s h a l l be s u b je c t to e s t a t e , in h e r ita n c e ,

or other e x c is e t a x e s , whether F e d e ra l or S t a t e , b u t s h a l l be exempt from

a l l ta x a tio n now or h e r e a fte r imposed on th e p r in c ip a l or in t e r e s t th e r e o f by

TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS
Thursday, May 2k, 1951_________

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

‘ryrr-]

$ 1,100,000,000 , or thereabouts, of
---------

JQmjfmX,

*

>asury bills, for cash and

-------

in exchange for Treasury bills maturing

to be
be issued
issued on
to

”—

a discount basis under competitive and non-competitive bidding as hereinafter
provided.
will mature

The bills of this series will be dated

interest.

and

1951

> when the face amount will be payable without

August 30, 1951
«jggg

May ^

*

They will be issued in bearer form only, and in denominations of

$1,000, $5,000, $10,000, $100,000, $500,000, and $1,000,000 (maturity value*).
Tenders will be received at Federal Reserve Banks and Branches up to the
Daylight Saving
closing hour, two o fclock p.m., Eastern/kfanmricggk time, Monday. M ay
19^1
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 ccmpanies and from responsible and recognized
dealers in investment securities.

Tenders frcm others must be accompanied

by payment of 2 percent of the face amount of Treasury bills applied for,

T R E A S U R Y

D E P A R T M E N T

Information Service

Washington , d .c .
V

R E L E A S E M O R N I N G N EWSPAPERS,
T h u rsday, M a y 2frjJLg51_._____

/

511

S-2700

The S e c r e t a r y of t he/Treasury, b y this p u b l i c notice, invites
tenders for $ 1 , 1 0 0 , 0 0 0 , 0 0 0 , or thereabouts, of 9 1 -day T r e a s u r y bills,
for cash a nd in e x c h a n g e for T r e a s u r y b i lls m a t u r i n g M a y 31, 1 9 5 1 , to
be i s s u e d on a d i s c o u n t basis u n d e r c o m p e t i t i v e and n o n - c o m p e t i t i v e
b i d d i n g as h e r e i n a f t e r provided.
The b i l l s of this series w i l l be
dated M a y 31* 1951* a nd w i l l m a t u r e A u g u s t 30* 1951* w h e n the face
amount w i l l be p a y a b l e w i t h o u t interest.
T h e y w i l l be issued in
bearer f orm only, and in d e n o m i n a t i o n s of $1,000, $5,000, $10 000
$100,000, $ 5 0 0 ,0 0 0 , and $ 1 , 0 0 0 , 0 0 0 ( m a t u r i t y v a l u e ).

Tenders will 'be received at. Federal Reserve Banks and Branches
up to the. closing hour, two o'clock p.m.* Eastern Daylight Saving
time, Monday, May 28, 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 t han b a n k i n g i n s t i t u t i o n s w i l l not be p e r m i t t e d to submit
tenders e x c e p t for their own account.
Te n d e r s w i l l . b e r e c e i v e d
without d e p o s i t from i n c o r p o r a t e d b a n k s and trust c o m p anies and f rom
responsible a nd r e c o g n i s e d d e a lers in i n v e s t m e n t s e c u r i t i e s . Tenders
from others m u s t be a c c o m p a n i e d b y p a y m e n t 'of 2 p e r c e n t of the face
amount of T r e a s u r y b i lls a p p l i e d for, unle s s the tenders are
acco m p a n i e d by an express g u a r a n t y of p a y m e n t b y an i n c o r p o r a t e d 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, tenders w i l l be opened a t - t h e
Federal R o s o r v o B a n k s and B r a n c h e s , f o l l o w i n g w h i c h p u b l i c a n n o u n c e ­
ment w i l l be m a d e by the S e c r e t a r y of the T r e a s u r y of trio amount- and
price r a n g e of a c c e p t e d bids.
T h ose s u b m i t t i n g tenders w i l l be
advised of the a c c e p t a n c e or r e j e c t i o n thereof.
The S e c r e t a r y of tho
Treasury e x p r e s s l y re s e r v e s the ri ght to a c c e p t or r e j e c t a n y or all
tenders,
in w h ole or in part, and hi s a c t i o n in a n y such r e s p e c t shall
be,final.
S u b ject to these r e s e r vations, n o n - c o m p e t i t i v e tenders for
$2 0 0 , 0 0 0
or less w i t h o u t stated p r i c e from a n y ono b i d d e r w i l l bo
accepted in full at the a v e r a g e price (in three dec i m a l s ) of a c c e p t e d

2
c o m p o t i t i v o bids.
Settlement- 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
M a y 31, 1951* in cash or o t h e r i m m e d i a t e l y a v a i l a b l e funds or in a
like face a m o u n t of T r e a s u r y b i l l s m a t u r i n g M a y 31> 1951*
Cash and
exchange tenders w i l l r e c e i v e e q u a l treatment.
C a s h a d j u s t m e n t s w ill
be m a d e for d i f f e r e n c e s b e t w e e n the p a r v a l u e of m a t u r i n g b i l l s
a c c e p t e d in e x c h a n g e and the issue p r i c e of the n e w b i l l s .
The income derived, f r o m T r e a s u r y bills, w h e t h e r i n t e r e s t or gain
from the sale or o t h e r d i s p o s i t i o n of the bills, shall n o t h a v e a n y
exemption, as such, a nd loss f rom the sale or o t h e r d i s p o s i t i o n of
T r e a s u r y bills s h all no t h ave a n y s p e c i a l treatment, as such, u n d e r
the I n t e r n a l R e v e n u e Code, or laws a m e n d a t o r y or ' s u p p l e m e n t a r y t hereto
The b i lls shall be su b j e c t to estate, i n h e r itance, gift or o t h e r
excise taxes, w h e t h e r F e d e r a l or State, b u t s h all b e -e x e m p t 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 o s e d on the p r i n c i p a l or i n t e r e s t thereof
by any'.State, or a n y of the p o s s e s s i o n s of the United. States, or b y
a n y local t a x i n g authority.
F o r p u r p o s e s of t a x a t i o n the a m o u n t of
d i s c o u n t at w h i c h T r e a s u r y bills arc o r i g i n a l l y sold b y the U n i t e d
States shall be c o n s i d e r e d to bo interest.
U n d e r S e c tions k2 a n d
117 (a) (l) of the I n t e r n a l R e v e n u e Code, as a m e n d e d b y S e c t i o n 115
of the R e v e n u e A c t of 19^-1, the a m o u n t of d i s c o u n t at w h i c h bills
i s s u e d h e r e u n d e r are sold shall not bo c o n s i d e r e d to a c crue u n t i l
s u c h b i lls shall be
sold, r e d e e m e d or o t h e r w i s e d i s p o s e d of, and
such bills are e x c l u d e d f r o m c o n s i d e r a t i o n as c a p i t a l .assets.
Accordingly, the owner of T r e a s u r y b i lls (oth e r t h a n life insurance
companies) i s s u e d hereund.or n e e d include in. h is i n c o m e tax r e t u r n
onl y the d i f f e r e n c e s b e t w e e n the p r ice p a i d f o r - s u c h bills, 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 purchase, and the a m o u n t a c t u a l l y
received, e i t h e r u p o n sale or r e d e m p t i o n at .maturity d u r i n g the
taxable year- for w h i c h the r e t u r n is made, as o r d i n a r y g a i n or loss.
m-

r e a s u r y 'Department C i r c u L a r No. 4l8, as amended, a n d this
__
„ b i l l s a n d g o v e r n the
notice, p r o s c r i b e the' terms of the Treasure
u e . Copies of the c i r c u l a r m a y bo ob t a i n e d
c o n d i t i o n s of their i
from a n y ^edora] R e s e r v e B a n k or B r a n c h .

oOo

us in common bond to wor« together,
ever w iI iIrig to mane whatever
sacrifices may be necessary to
defend the liberties which freedom
br ings us.
This then is our heritage -symbolized by the Liberty Bell and
the American pioneer.

I Know we

will have the strength to carry thi
heritage to new heights of
achievement in the cause of human
Ii berty.

effort.
In girding ourselves to meet
this newest and greatest threat to
our survival as a free Nation, and
as a free people in a free world,
we can do we I I to reflect on the
heritage left us by the American
pioneer.

That heritage is the

character of a oeople.

It is a

character of fortitude, of determinat

of courage -- a character that unites

preservation of a new, found way of
'•

'
f
*

■

.

|' '> .

life -- a free life in which he and
his children would be privileged
to enjoy the fruits of their labors
But let us' remember that
freedom is something which each
generation must carefully preserve
for those generations which follow.
Events of recent years and more
recent months have made us Keenly
aware that freedom can only be
preserved by constant, unremitting

required a year and a half of
tortuous journey by Lewis and C IarK .
As we stand here today, we
can do well to reflect upon the
problems which the American pioneer
met and conquered, and the personal
sacrifices he made to build the
abundant and free America which we
are privileged to enjoy.

The

problems he faced were not alone
those of conquering geographic
frontiers, but more important the

Many of the thrilling chapters of
the saga of America are credited to
your pioneering ancestors who
converted what was once a wilderness
into one of our Nation’s richest
commercial and industrial areas.
It seems almost inconceivabIe to
us acquainted with modern day
transportat ion that the famous Trail
between Independence and Salem,
which now can be spanned within a
matter of hours by plane, originally

* 18 open up the Oregon Trail and th
great Northwest.

Today, at the

other end of that famous tra i 1
have the privilege of ma King an
f 1ag présentât ion.
During the past century's
development of the Northwest, the
cities of Oregon have become as
much a part of our .American history
as Independence, Philadelphia
Jamestown, Boston, or i

ington

SIS

-

17

-

thi

he ère grateful for and proud o
f ine

p r *
w I

providi

o

ft

c

in this present ca
Mil also stand out

for its relationship to

i_ *

great epochs in our American history
I f irst

a t ion ceremony

in a Defense Flag

at 1ndependence, Missouri
town where

icina ted

p

ars a

is and ClarK set out on their
expedition which was destined to

Itti
in
ir i
#■

is

*

E
T
Bk

É$%>

fi
w

d ? iU

■H

f miili
■*orK.ers,

S

fi

■%’
# V *40’

■*#

in a sav ineis e

y

i<

unsurpas;

i psyro

i nsti
irsi
4
v

¿\¿%

#
C# f

in our ht
jg«% .&***
CS

in
13

d

■
iA
Ot
f

Ian

ine ver
has always more

W\sé

A 1r* fiIr m

Sm fi < %

te#

*»

to corno

í
I W

£$ <C
©5 <¡3r

%
K
&
-

y y ■#% ipk

«tea 5

fi

ffiffiftS
^^ ^

n.

In

drives. Ore
ade its qu

«

1 4 -

L-.tSfcS
.

I

in the present Savings Bond
Campaign.
Salem has today become one of the
first Amer¡can cities to fIy the
Treasury Defense Bond flag -- the
emblem of effective partnership with
our armed forces.

By becoming a

flag city you have recorded for
history your determined answer to :
the urgent need of today for community
action in defeating this new threat
to our existence as a free people.

by dealing with it with the
assistance of our Allies, on a
world basis. ■ Nevertheless, the sum
total of our strength deoends upon
the fortitude of each individual.
This day will remain a pleasing
memory to me.

It has been a source

of real inspiration to me to return
to the beautiful Willamette Valley
and to personally witness the
enthusiasm with.which the people of
Salem are again rallying themselves

12

s itua t ions in wh ich long, r e 1ent 1e c c
str iv ing is nece ssary to br ing
about a correct and lasting soluti on.
But u 11 ima te success in build in{?
our defe nses can be ach iev ed only
through earnest labor and personal
4. J

sacrifice,

We have gone far in

recognizing our problem as something
more than a narrow defense of our
own shores.

We Know that we face

a problem that can only be solved

s
C

ft

un w i

n* e cft'c

dr tve

will

y firme 8
5m e
w

for scarce
mg
«

this
à'

|*r v?

items.

grsi

er ioc

w

res.pon s it>il 1 1 y , ino iv iaua is
necessarily must make some
s a c r i ! ices.
A me r i c a n s

have

no doubt that
trie moral

cour
ourage

carry out the sustained effort
•4y I
f t

I

f

If!

I# I I V

goal.

cannot attain our
know there are so

The Treasury’s Defense Bond
program is spearheading the drive
ail over America to encourage
increased savings in ail forms.
The millions of men and women
throughout the country and the
thousands of residents of this
State are joining in investing
in United States Defense bonds
as an effective measure
against inflation.

They are

showing .their willingness to exercise

our entire defense mobi Iization
program.
Our individual citizens have
in their hands a most effective
weapon for combating this
dislocation in our economy.
_ //

,

.

”

*

And

*'ff?

that is to join with their fellow
Americans in a nation-wide program
to save more ana spend less at a
time when much of our national
production must, of necessity, go
for defense purposes.

our military strength is to be
effective we must/ at the same time
Keep our economy strong ana
productive.
For those who do not serve in
the armed forces, there is a job
to be done on the home front in
which each of us can actively
participate.

■
■

One of the most serious I

threats to the strength of our

I

economy today is rising prices and

I

resuItant inf Iat ion, which, if not

I

halted, will seriously jeopardize

I

.-'w. &

to our faith, our courage, and our
determ¡nation to preserve the
independence for which we and our
forefathers have so determinediy
fought has never presented a greater
challenge.

We face an enemy with no

creed except that might makes right -an enemy who, by whatever unscrupuIous
means necessary, would erase the
personal freedoms we cherish.
To meet the challenge of the
times we must, of course, be prepared

along with the symbolic figure of
the pioneer surmounting your Capitol
building, as a constant reminder
of the true American spirit, and
its ideals of life, liberty, and
the dignity of mankind.
In the present crisis which
faces our Nation, and other free
nations united with us in the fight
for freedom and justice throughout
the world, the need for this spirit
has never been greater.

The test

3

-

5

-

- I,

.

;

•

*t V* *

in promoting personal thrift as well
as encouraging greater individual
participation in the affairs of our
Government through the purchase and
ownership of United States savings
bonds,
However, as we enshrine this
bell on your Capitol grounds today,
it stands not simply as a tribute to
the cooperative endeavors of your
people for a single month or for
even a single year.

It stands rather,

freedom-Ioving people all over the
world who are uniting with us to
attain a brotherhood of nations
dedicated to peace with freedom and
justice.
The Liberty Bell was chosen as
the symbol of .our Independence
Savings Bond Drive last year.

This

exac.t duplicate of the original bell
was presented to the people of the
State of Oregon for their effective
part ic ipat ion with fellow Americans

geographic/ and later scientific
frontiers -- to develop our
abundant resources and to build
up our strong economy.

It is this

same spirit which hIIs made our
Nation a mighty bulwark against
dictatorial aggressors who in the
past -- and even now -- seek to
destroy the meaning of true
democracy.
This Liberty Bell is today not
only an American but a world symbol
ft

It is bringing hope to millions of

££5

-

2

9

great Nation o'f today.
Our Union has grown and
prospered because we have recognized
that a Nation can be strong and free
only when its individual citizens
work together in united effort to
preserve their personal

liberties as

well as their national freedom.

It

is this spirit of cooperative
' endeavor that has motivated -succeeding
generations of Americans to ever
move

f irs

etrat ing

It is an honor ana a privilege
for me to participate with the
citizens of Salem and your fellow
Oregonians in permanently enshrining
on your Capitol grounds this
reproduction of one of our Nation's
most cherished national relics
the Liberty Bell.

From the very

inception of our country, this bell
has been the symbol of independence -and it has remained so while we grew
from thirteen struggling states to the

TREASURY DEPARTMENT
W ashington

The f o llo w in g ad d re ss by S e c r e t a r y Snyder^ a t a L ib e r t y
B e l l D e d ic a tio n cerem ony on th e S t a t e S a p i t o l g r o u n d s /
a t ^alem , O re g o n , i s s c h e d u le d f o r d e li v e r y a t 2:00 p.m.
PDT (5 p .m . EDT) M onday, May 2 1 , 1951, and i s f o r r e le a s e
a t t h a t t im e .

536
TREASURY DEPARTMENT
Washington

The following address hy Secretary Snyder
at a Liberty Bell Dedication ceremony on
the State Capitol grounds at Salem, Oregon,
is scheduled for delivery at 2:00 p.m. PDT
Tg p.m. E D I T Monday, May 21, 19513 and is '
for release at that t i m e .

It is an honor and a privilege for me to participate with
the citizens of Salem and your fellow Oregonians in permanently
enshrining on your Capitol grounds this reproduction of one of our
Nation's most cherished national relics -- the Liberty Bell.
Prom
the very inception of our country, this bell has been the symbol
of independence -- and it has remained so while we grew from
thirteen struggling states to the great Nation of today.
Our Union has grown and prospered because we have recognized
that a Nation can be strong and free only when its individual
citizens work together in united effort to preserve their personal
liberties as well as their national freedom.
It is this spirit of
cooperative endeavor that has motivated succeeding generations of
Americans to ever move forward -- by penetrating first geographic
and later scientific frontiers -- to develop our abundant re­
sources and to build up our strong economy.
It is this same
spirit which has made our Nation a mighty bulwark against
dictatorial aggressors who in the past -- and even now -- seek to
destroy the meaning of true democracy.
This Liberty Bell is today not only an American but a world
symbol.
It is bringing hope to millions of freedom-living people
all over the world who are uniting with us to attain a brother­
hood of nations dedicated to peace with freedom and justice.

S-2701

537
-

2

-

The Liberty Bell was chosen as the symbol of our Independence
Savings Bond Drive last year.
This exact duplicate of the
original bell was presented to the people of the State of Oregon
for their effective participation with fellow Americans in p r o ­
moting personal thrift as well as encouraging greater individual
participation in the affairs of our Government through the
purchase and ownership of United States savings bonds.
However, as we enshrine this bell on your Capitol grounds
today, it stands not simply as a tribute to the cooperative
endeavors of your people for a single month or for even a single
year.
It stands rather, along with the symbolic figure of the
pioneer surmounting your Capitol building, as a constant reminder
of the true American spirit, and its ideals of life, liberty, and
the dignity of mankind.
In the present crisis which faces our Nation, and other free
nations united with us in the fight for freedom and justice
throughout the world, the need for this spirit has never been
greater.
The test to our faith, our courage, and our determi­
nation to preserve the independence for which we and our fore­
fathers have so determinedly fought has never presented a greater
challenge. We face an enemy with no creed except that might makes
right -- an enemy who, by whatever unscrupulous means necessary,
would erase the personal freedoms we cherish.
To meet the challenge of the times we must, of course, be
prepared to meet might with might.
But if our military strength
is to be effective we must at the same time keep our economy
strong and productive.
For those who do not serve in the armed forces, there is a
job to be done on the home front in which each of us can actively
participate.
One of the most serious threats to the strength of
our economy today is rising prices and resultant inflation, which,
if not halted, will seriously jeopardize our entire defense
mobilization program.
Our individual citizens have in their hands a most effective
weapon for combating this dislocation in our economy.
And that
is. to join with their fellow Americans in a nation-wide program
to save more and spend less at a time when much of our national
production must, of necessity, go for defense purposes.

538
-

3 -

The Treasury's Defense Bond program is spearheading the
drive all over America to encourage increased savings in all forms.
The millions of men and women throughout the country and the
thousands of residents of this State are joining in investing
in United States Defense bonds as an effective measure against
inflation.
They are showing their willingness to exercise selfrestraint and prudence, and unwillingness to attempt to drive
prices up by unnecessary competitive bidding for scarce items.
During this period of great responsibility, individuals
necessarily must make some sacrifices. I have no doubt that
Americans have the moral courage to carry out the sustained effort
without which we cannot attain our goal.
¥e know there are some
situations in which long, relentless striving is necessary to
bring about a correct and lasting solution.
But ultimate success in building our defenses can be achieved
only through earnest labor and personal sacrifice.
We have gone
far in recognizing our problem as something more than a narrow
defense of our own shores. We know that we face a problem that
can only be solved by dealing with it with the assistance of our
Allies, on a world basis.
Nevertheless, the sum total of our
strength depends upon the fortitude of each individual.
This day will remain a pleasing memory to me.
It has been a
source of real inspiration to me to return to the beautiful
Willamette Valley and to personally witness the enthusiasm with
which the people of Salem are again rallying themselves in the
present Savings Bond Campaign.
Salem has today become one of the first American cities to
fly the Treasury Defense Bond flag -- the emblem of.effective
partnership with our armed forc e s . By becoming a flag city you
have recorded for history your determined answer to the urgent
need of today for community action in defeating this new threat
to our existence as a free people.
Savings bonds have long been a favorite investment of the
citizens of Oregon, and your state has had a most pivotal part
in the leadership which has so deeply engrained the savings
bond program as a fundamental American institution.
In World War II
years,, when the savings of our people were so urgently needed in
the defense of our Nation, it was Oregon's native son, Ted Gamble,
who took the helm as the Nation's No. 1 volunteer in the Savings
Bonds program.
Through his untiring efforts and splendid
direction of millions of volunteer workers, the individuals of
this Nation united in a savings effort unsurpassed in our history.

When the payroll savings plan was instituted in 1942, Oregon was
the first state to complete the nationwide pledge campaign.
In
the various bond drive, Oregon has always more than made its
quota. We are grateful for and proud of the fine leadership you
are again providing in this present campaign.
This day will also stand out for its relationship to one of
the great epochs in our American history.
Two weeks ago I first
participated in a Defense Flag presentation ceremony at
Independence, Missouri -- the town where 147 years ago this month
Lewis and Clark set out on their expedition which was destined to
open up the Oregon Trail and the great Northwest.
Today, at the
other end of that famous trail I have the privilege of making
another flag presentation.
During the past century’s development of the Northwest, the
cities of Oregon have become as much a pant of our American
history as Independence, Philadelphia, Jamestown, Boston, or
Washington. Many of the thrilling chapters of the saga of
America are credited to your pioneering ancestors who converted
what was once a wilderness into one of our N a t i o n ’s richest
commercial and industrial areas.
It seems almost inconceivable
to us acquainted with modern day transportation that the famous
Trail between Independence and Salem, which now can be spanned
within a matter of hours by plane, originally required a year and
a half of tortuous journey by Lewis and Clark.
As we stand here today, we can do well to reflect upon the ,
problems which the American pioneer met and conquered, and the
personal sacrifices he made to build the abundant and free America
which we are privileged to enjoy.
The problems he faced were not
alone those of conquering geographic frontiers, but more important
the preservation of a new found way of life -- a free life in
which he and his children would be privileged to enjoy the fruits
of their labors.
But let us remember that freedom is something which each
generation must carefully preserve for those generations which
follow. Events of recent years and more recent months have made
us keenly aware that freedom can only be preserved by constant,
unremitting e ffort.

540
- 5 In g i r d i n g o u r selves to m e e t this n e w e s t and g r e a t e s t threat
to our s u r v i v a l as a free Nation, a nd as a free p e o p l e in a free
world, we can do w e l l to r e f l e c t on the h e r i t a g e left us b y the
A m e r i c a n pioneer.
T h a t h e r i t a g e is the c h a r a c t e r of a people.
It is a c h a r a c t e r of fortitude, of d e t e r m i n a t i o n , of courage -~
a c h a r a c t e r that unit e s us in c o m m o n b o n d to w o r k together, ever
w i l l i n g to m a k e w h a t e v e r sac r i f i c e s m a y be n e c e s s a r y to d e f e n d
the liberties w h i c h f r e e d o m b r i n g s us.
This t h e n is our h e r i t a g e -- s y m b o l i z e d b y the L i b e r t y B e l l
a n d the A m e r i c a n p i o neer.
I k n o w we w i l l h a v e the s t r e n g t h to
c a r r y this h e r i t a g e to n e w h e i g h t s of a c h i e v e m e n t in the cause
of h u m a n liberty.

0O0

n

34
We shall, therefore, in the
company of the other free nations,
continue to build our

global defense.

We shall resist aggression.
reject appeasement.
KJ

We shall

We shall use
;

'

*

/

our ingenuity to find new methods,
new combinations, new means to defeat
totalitarian designs and win peace
with freedom and justice.

This is a new and different
approach to the achievement of a
peace with freedom and justice.
believe it is not necessary for free
nations to be led into world disaster.
We believe it is possible for them
to demonstrate, even to dictatorships,
that while such a disaster might
injure the free nations themseIves, it
would destroy the others.

Thus the free nations of the
them, can apply

, ours

ity and invention.

They can

meet the threat of the moment on
their own terms.

need not

lured into actions

mI

bring about a third World War.
the contrary, they can throw back
n

in Korea -- and at

same

time build up such a reservoir of
strength as to make possible the

H C

s ine
nations of the wor
are not bound by any doctrinaire
ph s Iosophy.

not irrevoca

commi

program
i, as are the

f*»

Communists, by

fit

of

preconceived notions.
are committed only to

free nation

4

propos 1 1 1 on

that there must be freedom

♦

*

hence,

that armed aggression must be
repelled wherever it threatens freedom.

aggression.

W11h the free nations

gathering strength, it is possible
for them to exercise greater freedom
of choice.
. aggression.
H i

Weakness invites
Weakness also tempts

ahe subjects of aggression to strike
out blindly in response to attack.
Strength discourages aggression.

It

also permits those wno stand for
freedomvto choose\not on 1^ points of
resistance but also to choose the
extent to which they will resort to

made possible.by the various
agencies of the United Nations,
to the point where there, is no
comparison between their present
situation and the one in which
they found themselves at the
close of the second World War.
This general strengthening of
the free world,

I believe,

is the

best poss ibIe answer to Communist

defense bonds, as you know
part icu l.ar Iy from .the part ic ¡pati on
of employees here in the Northwest
in payroll savings plans.
As i have pointed out, the
free nations of the world have
strengthened themselves, partly
through our help and the interchange
of assistance in solving problems

basis.

a

Even

increase taxes in order to continue
this course, the immediate prospect
does not .appear so drastic as a year
ago.

Our efforts to strengthen our

economy by combating inf Iat ion
are making progress.

The faith of

our people in our fiscal system
.

,
'

|

is displayed by Ithe millions
have invested their savings in

nations

not just local

or

certain iso

V

f

will make
aggression impracticab Ie.
We are strong, and growing
stronger, at home and abroad.

With in

the United States we are keeping our
house in order.
our national

We have increased

income beyond the most

optimistic predictions.

Our

production- has Kept pace and is
going forward.

We are building up

our defenses and paying for them on

free powers of that area are growing
closer together.

The pattern of

strength is developing rapidly.
Formal peace will enable Japan to
take its place in this pattern.
Australia and New Zealand, proven
allies of courage, will draw closer
to us.

The frontiers of freedom wiI

be maintained on the western shores
of the Pac if ic.I am profoundly convinced that
the increasing power of the free

nations throughout the world.

Western

Europe is immeasurably stronger
economically than it was when
General Marshall made his memorable
speech at Harvard,

That area is much

more united in will and purpose.

It

is growing stronger in military
resource and unity hour by hour,
Iinked together and sustained by the
Atlantic Fact,
Similar advances are being made
throughout the Pacific.

The great

refuted the notion that an aggressor
could take over South Korea despite
the best efforts of the free world.
d

.

V

We have more than held our own, and
there isA no doubt that

.oom-g— s=e

the pressure upon Communist resources
not only in Korea but also in China k .
fee# increasing at an infinitely
greater rate than the pressure on oursJ
Meanwhile we have foil owed a
I‘¡k
sound and considered course in
building the strength of the free

I
I

To gain such a

it is

necessary to find not one way to
fleet a given problem but to find the
best

the way that will

a real solution in the long run.
Spreaoing this area of war might seem
to offer a quick road to peace.
Spreading this area of war by our own
choice 'might also defeat our purpose.
By our support of the United
Nations in Korea we have upset the
Communist timetable,

¡te have

21
precise as to the nature of our
purpose.

It is, quite simply,

.to achieve peace with freedom and
justice, not only for Korea but as
a standard .for the entire free world.
Only through a peace of that Kind
can the free nations of the world
maintain themselves and preserve
those values which enable men
and women to funct ion as human beings.

because it makes clear our will to
resist, and emphasizes the danger
which any aggressor faces.

No

longer can a dictator be convinced:
that rie can gain nis ends by force
cheaply or if, indeed, he can gain
them at ail.
a

i

/There nas been a great deal of
discussion as to what steps should
presently be taken to achieve our
purpose in Korea.

Perhaps it would

be well, in sucn discussions, to be

in Asia.

They have become perfectly

clear to the people of the whole
United States.

Very few Americans

now have any doubt as to the wisdom
of our support of the United Nations
in fighting aggression in Korea.
By doing so we served notice that
the United States of America and
the other free nations of the world
would not stand idly by while
aggressors applied naked force to
achieve their ends.

That is important

our military mission prevented
aggression in Turkey.

We threw back

Communist aggression in Greece.

The

Marshall Plan strengthened the will
of peoples in Europe to resist
Communist designs within their own
countries.

You will recall the

electorate of France and Italy
resisted every threat and inducement
of the Communist drive.
Here in the Northwest you are
well aware of Commun ist designs

-

833

17

ican ability to meet problems
in

s had much to do wi

winning of World

II

We have used

it to great advantage in dealing with
the new threat of dictatorship.

No

one doubts that Communistic plans
envision world domination.
Aor

II.

After

saw those plans not

only transformed into action but in
S0

easure of succe

a

We have devised ways-to combat and
ose schemes

that freedom flowed new economic

%

devices for raising and balancing the
standards of living of our people.
This same vision has been shown
in our meeting of world problems.
We have been in the forefront in
efforts to stimulate cooperation
among free nations.

The United

Nations grew out of a long history
of advances in which our country
took the leadership*

032

15 -

It spread over a greater area than
ever before.

We have a country in

which any citizen can travel hundreds
of miles, from one border to another,
without ever being questioned or
halted.

We have no barriers among

us,and trade flows freely.
More than that, throughout
this great expanse of territory,
we have preserved and encouraged our
system of free enterprise, and from

ability in the fields of
ad« ini sirs.t ion, government,
human re Iationsh ips.
The same qua ! it ies Ahich I
have been di scuss ing have been
appIi ed in these vita 1 1y important
fields.

1 e have an i»pressIve
|fj^

record of success, p.rid we have 8
right to b e proud of it.
The v #ry idea of' democratic
se 1f-gover nment was r■tv ivfed and
s -\
expanded here in the United States

ode

12

Kept in humidors.

-

The atper

remained sufficiently damp for the
S MSP fH

.

printing without any further

!

wetting

umioors wn t

printing expert devised were made
of resinous bonded pi ywood.
Part of the presses I
of Engraving and Printing already
havd been equipped for this new,
economical, time-saving procedure
program for «Q u i p p i ng the rest of
the presses is under way

$

eau

for currency were necessary In
the course of the printing process.
First, one side of the currency
was printed.

Then the entire

piece of paper was dried.

Days

later, the paper was moistened
again, printed on the other side
and then dried the second time.
One of the staff in the Treasury
Department found that the ink used
in the first printing would dry
satisfactorily while' the paper was

333
-

|

*

There is a moral to this story
of the progress of the Douglas Fir
Plywood industry.

It is that men

who have vigor and inventiveness can
■ •'
meet any situation with hopefulness
\,

,

/

and confidence.

Men of those

qualities do not become inactive in
the face of difficulty nor do they
strike out blindly.

They examine the

problem confronting them and consider
what methods will best serve to
solve it.

They do not necessarily

i Ou

Years ago on Iy a sina fI percents
Doug Ias P 1r felled in the forests
used for peeler logs.
sa jcl more

Now it Is

percent o

Iogs felled can
■f*

secs ror

i more ot

has been eliminated.

y*ood

ft its

*

goes into the product

18

W!

-aste

The principles!-

of scientific silviculture are being
applied to lumbering practices.
Tney art insuring a supply of Douglas
■
/fir for the future.

that a Jog weighing thousands of
pounds can be rotated against a
giant blade and turned into long
strips of pliable veneer.

More

wonderful yet is the end product -plywood.

The skilfully laminated

and processed strips peeled from the
D o u g l a s i r turn into material of
surprising strength and unbelievable
variety of application.
There are many other materials
produced in this country of ours of

u

4

forests must have been staggered by
their huge dimensions.

And he must

have even then guessed that some
day the Douglas Fir would prove to
be an asset of very great worth.
I doubt that anyone, half a
century ago, could have dreamed of
the uses to which the ingenuity of
American lumbermen and manufacturers
would put this extraordinary raw
material.

L

It still seems wonderful

Yc

5
power which we have at our command.
And then, over toward the Pacific
shores, the traveler sights still
another magnificent resource -- the
huge forests of that unique American
tree which we call the Douglas/Fir.
It is but faint praise to say

that the Douglas/ir, whether viewed
singly or in masses of countless
thousands, is a thing of beauty as
we II as of strength.

The first

woodsman who set eyes upon these .

z
-

2

-

natural and man-made, spread over the
landscape on a tremendous scale.
No matter how many times repeated,
every journey across our country
brings greater understanding of
the marvelous variety and vast
extent of America's growth.

Plains

rich with grain, deserts that have
been made to blossom through
irrigation, mountains abounding with
minerals -- all of these are stirring
manifestations of the wealth and the

All of us are giving much
thought these troubled
the development of our
program, to the economic and
industrial strength of our country,
as well as to its strength in
in spirit.

Here in

the Pacific Northwest, those elements
are represented most significant Iy
and most impressively.

It is a

moving experience to travel to this
area again and see in every direction
evidence of great resources, both

TH p

AftEJUCfìtf

&0AL-

576
TREASURY DEPARTMENT
Washington

The fo llo w in g address by S e c r e ta r y Snyder
b e fo re the D ouglas F i r Plywood A s s o c ia tio n
a t the G earhart H o t e l, G e a r h a rt, Oregon,
i s scheduled f o r d e liv e r y a t 1800 P»M. PDT
Çiis00 P M 0 EDT) Tuesday, May 22. 1951» and
i s f o r r e le a s e a t th a t tim e.
THE AMERICAN GOAL
A l l of us are giving much thought these troubled days, during the
development of our Defense program, to the economic and industrial
strength of our country, as well as to its strength in manpower and in
spirit. Here in the Pacific Northwest, those elements are represented
most significantly and most impressively.
It is a moving experience to
travel to this area again and see in every direction evidence of great
resources, both natural and man-made, spread over the landscape on a
tremendous scale.
No matter how many times repeated, every journey across our country
brings greater understanding of the marvelous variety and vast extent
of America’s growth.
Plains rich with grain, deserts that have been made
to blossom through irrigation, mountains abounding with minerals — all
of these are stirring manifestations of the wealth and the power which
we have at our command. And then, over toward the Pacific shores, the
traveler sights still another magnificent resource
the huge forests
of that unique American tree which we call the Douglas fir.
It is but faint praise to say that the Douglas fir, whether viewed
singly or in masses of countless thousands, is a thing of beauty as well
as of strength. The first woodsman who set eyes upon these forests
must have been staggered by their huge dimensions. And he must have
even then guessed that some day the Douglas fir would prove to be an
asset of very great worth.
I doubt that anyone, half a century ago, could have dreamed of
the uses to which the ingenuity of American lumbermen and manufacturers
would put this extraordinary raw material. It still seems wonderful
that a log weighing thousands of pounds can be rotated against a giant
blade and turned into long strips of pliable veneer. More wonderful
yet is the end product — plywood. The skilfully laminated and processed
strips peeled from the Douglas fir turn into material of surprising
strength and unbelievable variety of application.
There are many other materials produced in this country of ours of
similar importance and variety of use. But plywood is particularly
suggestive of the ingenuity, the flexibility and the inventiveness of

S-2702

-

American industry*
courage.

2

-

577

I might add that it is also a product of vigor and

The remarkable growth in production in the years from the onset of
World War II to the present hints at these qualities in the men who
make up this industry. In 1938* 65>0 million square feet of Douglas fir
plywood came from the mills of the Northwest.
This year, I am told,
they will produce nearly 3 billion square feet.
The Douglas Fir Plywood Association helped to find new processes,
to establish standards and to foster the conservation of resources#
Individual operators made new discoveries and the Association spread
knowledge of them.
Years ago only a small percentage of Douglas fir felled in the
forests was used for peeler logs. Now it is said more than bO percent
of the logs felled can be used for plywood.
Indeed, much more of the
log itself goes into the product. Much waste has been eliminated. The
principles of scientific silviculture are being applied to lumbering
practices.
They are insuring a supply of Douglas fir for the future.
There is a moral to this story of the progress of the Douglas Fir
Plywood industry. It is that men who have vigor and inventiveness can
meet any situation with hopefulness and confidence. Men of those
qualities do not become inactive in the face of difficulty, nor do they
strike out blindly. They examine the problem confronting them and
consider what methods will best serve to solve it# They do not necessarily
adopt the first means that occurs to them.
I can give you an example of this ingenuity by which the United
States Treasury Department is benefiting. Furthermore, it concerns the
use of plywood in a project which we think will save many thousands of
dollars a year in the printing of United States currency.
In the past, two wettings and two dryings of special paper used for
currency were necessary in the course of the printing process. First,
one side of the currency was printed. Then the entire piece of paper
was dried. Days later, the paper was moistened again, printed on the
other side and then dried the second time.
One of the staff in the Treasury Department found that the ink used
in the first printing would dry satisfactorily while the paper was kept
in humidors. The paper remained sufficiently damp for the second print­
ing without any further wetting.
The humidors which the printing expert
devised were made of resinous bonded plywood,
Part of the presses in the Bureau of Engraving and Printing already
have been equipped for this new, economical, time-saving procedure. A
program for equipping the rest of the presses is under way.

-

3 -

578

Such inventiveness runs through all American life. It is a
characteristic that of course was immortalized long ago by Mark Twain
in his tale of the Connecticut Yankee in King Arthur*s Court* Somehow
the American atmosphere seems to be one in which ingenuity flourishes*
This tradition of invention is not confined to mechanics or physical
science. Fortunately, we also have this ability in the fields of
administration, government, and human relationships.
The same qualities which X have been discussing have been applied
in these vitally important fields. We have an impressive record of
success, and we have a right to be proud of it.
The very idea of democratic self-government was revived and
expanded here in the United States*
It spread over a greater area than
ever before. We have a country in which any citizen can travel hundreds
of miles, from one border to another, without ever being questioned or
halted. We have no barriers among us, and trade flows freely.
More than that, throughout this great expanse of territory, we
have preserved .and encouraged our system of free enterprise, and from
that freedom flowed new economic devices for raising and balancing the
standards of living of our people.
This same vision has been shown in our meeting of world problems.
We have been in the forefront in efforts to stimulate cooperation among
free nations.
The United Nations grew out of a long history of advances
in which our country took the leadership,
American ability to meet problems in new ways had much to do with
the winning of World War II, We have used it to great advantage in
dealing with the new threat of dictatorship. No one doubts that
Communistic plans envision world domination. After World War II, we
saw those plans not only transformed into action but in some cases, with
a measure of success. We have devised ways to combat and defeat those
schemes.
Our aid and our military mission prevented aggression in
Turkey. W e threw back Communist aggression in Greece.
The Marshall
Flan strengthened the will of peoples in Europe to resist Communist
designs within their own countries. You will recall the electorate of
France and Italy resisted every threat and inducement of the Communist
drive.
Here in the Northwest you are well aware of Communist designs in
Asia.
They have become perfectly clear to the people of the whole
United States. Very few Americans now have any doubt as to the wisdom
of our support of the United Nations in fighting aggression in Korea,
By doing so we served notice that the United States of America and
the other free nations of the world would not stand idly by while
aggressors applied naked force to achieve their ends.
That is important
because it makes clear our will to resist, and emphasizes the danger
which any aggressor faces. No longer can a dictator be convinced that
he can gain his ends by force cheaply or if, indeed, he can gain them at
all«

-

k -

579

There has been a great deal of discussion as to what steps should
presently be taken to achieve our purpose in Korea, Perhaps it would
be well, in such discussions, to be precise as to the nature of our
purpose. It is, quite simply, to achieve peace with freedom and justice,
not only for Korea but as a standard for the entire free world.
Only
through a peace of that kind can the free nations of the world maintain
themselves and preserve those values which enable men and women to
function as human beings.
To gain such a peace it is necessary to find not one way to meet
a given problem but to find the best way — the way that will prove a
real solution in the long run. Spreading this area of war might seem
to offer a quick road to peace.
Spreading this area of war by our own
choice might also defeat our purpose.
By our support of the United Nations in Korea we have upset the
Communist timetable. We have refuted the notion that an aggressor could
take over South Korea despite the best efforts of the free world. We
have more than held our own, and there is now no doubt that the
pressure upon Communist resources not only in Korea but also in China
is increasing at an infinitely greater rate than the pressure on ours.
Meanwhile we have followed a sound and considered course in
building the strength of the free nations throughout the world. Western
Europe is immeasurably stronger economically than it was when General
Marshall made his memorable speech at Harvard.
That area is much more
united in will and purpose. It is growing stronger in military resource
and unity hour by hour, linked together and sustained by the Atlantic

Pact,
Similar advances are being made throughout the Pacific.
The great
free powers of that area are growing closer together. The pattern of
strength is developing rapidly» Formal peace will enable Japan to
take its place in this pattern. Australia and New Zealand, proven
allies of courage, will draw closer to us. The frontiers of freedom
will be maintained on the western shores of the Pacific.
I am profoundly convinced that the increasing power of the free
nations — not just local power or power of certain isolated points,
but global power
soon will make aggression impracticable.
We are strong, and growing stronger, at home and abroad. Within
the United States we are keeping our house in order. W© have increased
our national income beyond the most optimistic predictions.
Our
production has kept pace and is going forward. W© are building up our
defenses and paying for them on a prudent pay-as-you-go basis. Even
though it will be necessary to increase taxes in order to continue this
course, the immediate prospect does not appear so drastic as a year ago.
Our efforts to strengthen our economy by combating inflation are making
progress.
The faith of our people in our fiscal system is displayed by

580
-

5

-

the millions who have invested their savings in defense bonds, as you
know particularly from the participation of employees here in the
Northwest in payroll savings plans*
As I have pointed out, the free nations of the world have
strengthened themselves, partly through our help and the interchange
of assistance in solving problems made possible by the various agencies
of the United Nations, to the point where there is no comparison between
their present situation and the one in which they found themselves at
the close of the second World War.
This general strengthening of the free world, I believe, is the
best possible answer to Communist aggression. With the free nations
gathering strength, it is possible for them to exercise greater freedom
of choice. Weakness invites aggression. Weakness also tempts the
subjects of aggression to strike out blindly in response to attack.
Strength discourages aggression, It also permits those who stand for
freedom not only to choose points of resistance but also to choose the
extent to which they will resort to force at any single point.
The free nations of the world are not bound by any doctrinaire
philosophy. They are not irrevocably committed to any inflexible program.
They are not handicapped, as are the Communists, by a series of pre­
conceived notions. The free nations are committed only to the proposition
that there must be freedom and, hence, that armed aggression must be
repelled wherever it threatens freedom.
Thus the free nations of the world, ours among them, can apply
ingenuity and invention. They can meet the threat of the moment on their
own terms. They need not be lured into actions which might bring about
a third World War, On the contrary, they can throw back attempts at
aggression — as they are doing in Korea — and at the same time build
up such a reservoir of strength as to make possible the averting of a
wider catastrophe.
This is a new and different approach to the achievement of a peace
with freedom and justice. We believe it is not necessary for free
nations to be led into world disaster. W© believe it is possible for
them to demonstrate, even to dictatorships, that while such a disaster
might injure the free nations themselves, it would destroy the others.
We shall, therefore, in the company of the other free nations,
continue to build our global defense. We shall resist aggression. W©
shall reject appeasement. We shall use our ingenuity to find new methods,
new combinations, new means to defeat totalitarian designs and win peace
with freedom and justice.
0O0

- 3 -

they' are taking important steps toward reaching those goals by purchasing
Defense Bonds and Stamps through the School Savings Program.
"Sales of 10-cent Stamps during the current school year (through April 30)
are 32 per cent ahead of the same period in the 19h9-^0 school year.
Apn-n-*»n=h»n.

Rtjmpg to+alQd 3 j7n° jOOO

than thc"-Aprily 19!;0, kotal.
$1,300,000 per month —

■»fellion-more—

IrTdoliar volume, all Stamp sales are averaging

6 per cent more than the average for the same period

last year.
"Through School Savings, our youthful citizens are learning to plan
for their future well-being and to become shareholders in America.

They

are becoming increasingly conscious of the role they will play as adult,
responsible citizens."

ast wing of White House)

|§j
Barbara M c D a n i e l ,
"Line o In School,

St.

L o u i s , M o . ; ( w i l l i a m Ingram,

St .~~Lo ui s , M o . j*)Na ama n Cole, C a r v e r School,

^Louis, M o . p ^ d w a r d
Mo.;

C a r v e r School,

P r e sson,

East Prairie

M o n t y De n n i s o n ,

Mary Prances Penton, Harding
A l l e n H a y See, H a r r i s o n School,

St.

Jr. High, E a s t Prairie,
C a r t hage, Mo.;

Jr. High,
S h a wnee,

O k l a h o m a City,
Okla.;

Okla.;

regional committeeiset up by $lr. Edson, / ibout
$00 dr*
12 children fo:

:ed final jÿoging^^üáÉfaíCbft selection of the fallowing
.
^
«€**/
&■ visit to/the White
ton p i n t h o honor1 of
*
f
itehea a» Biapla y -i» ¿¡he liaMlr’Wiife-ur the-Whit . "Hum e t -

ijary Atm Parkinson, Racoon School, Route 1 , Centralis, Illinois^
/"*

t

»

K

© la n e t t e Kenner, H icksville Exempted Village^ ^ ickfcville, Ohioi,

G 9 [E lissa VonLetkemann, Hadley Jr. High School, Swampscott, Massiv
0 Ü 5 & Í/ I d
O f*
¿ fy jjff O & fe i

-

2-

feobert Keegan, Saint Monica School, New York 21, New York#
(Nancy Louise Dutton, T. A. Edison School, Glendale, California^
©jRosalie Rosen, Phillips Jr* High School $ Minneapolis, Minnesota#
©
jVidal Casiquito,Jr*

Jemez Day School, Jemez Pueblo, New Mexico!/1

(g)|Bernice Snyder, Milford Mill Jr. High, Baltimor^ Maryland^

Irving Junior High, Lincoln, Nebraska^ [Bernard Chavers, Madison St*
T * t _____

School, Ocala, florida 3p H

In addition to the 12 top drawings, the President will see sketches by
the following children who won honorary mention:

Mark Hildebrand, Sunset

School, Carmel, California; Ellis Walker, Stevens School, Stamford, Conn.;
Edith Chamberlain, Kay Avenue School, Milford, Conn.; Richard Brello, Rice
School, Stamford, Conn.; Willie Lee Sims, Howard Academy Elementary School,
Ocala, Florida; Phyllis Cole, Bolton School, Bolton, Georgia; Susan Voska,
Hobel-School, Chicago,

Yolanda Tulla, McLaren>Sohool, Chicago,

Jllinogs; Janice Morys, Pulaski School, Chicago, H-I^SAis,* Faye Harrison,
Holy Trinity School, Luxemburg, Iowa; Carol Beattie, Iowa School for
~Tex.Sfaot, Ut*C

the Blind, Vinton, Iowa; Rosalie Berinato, Patrick T. Campbell School,

A

Boston, Ifeee.; Maureen Sullivan, Peabody School, Cambridge, Mass.;
David Mehlin, W. G. Mitchell School, Williamstown, Mass.; Judy Mahle,
Groveland Park School, St. Paul, Minnas Robert Stein, Phillips Jr. High
School, Minneapolis, Minn.;

,

St. Leo*s Elementaiy School

Lewiston, Montana; Lorenzo Coriz, U. S. Indian School, Santa Fe> New Mexico
Clair Morgan, Irving Junior High School, Lincoln, Nebraska; Hazel Gale,
Bacon School, Millville, New Jersey; Ellen Eisenberg, P. S. 63 Manhattan,
f t *

Kenneth Farrell, School No. 5>1, Buffalo, New York.; Beverly Crowley,
Longfellow School, Sioux Falls, South Dakota; Joe Roberson, Peytonsville
School, Franklin, Tennessee; Eugene Sowell, Parkview School, Jackson,
Tennessee; Judy Sheider, Armstrong School, Dallas, Texas and
James Featherstone, Groveton School, Alexandria, Virginia •
In announcing the success of the student art project, Secretary
Snyder aaid:

"American youths are not just dreaming about their goals;

FOR RELEASE
SUNDAY, May 2?, 1951

Q 7 0 £3

Secretary Snyder announced today that the National Cartoonists Society,
co-sponsors with the Treasury’s Savings Bonds Division of the "Draw the
Dream You Save For” art project in the nation’s elementary schools, had
made its selections of the best sketches submitted in the competition.
Twelve children, ranging from 10 to ll; years of age, whose drawings
were considered by the cartoonists to have been outstanding, will be
congratulated by President Truman at the White House next Monday.

They

will be accompanied by their teachers.
The youthful artists depicted in realistic fashion the goals they and
their families are saving for through systematic investment in United States
Savings Bonds and Stamps.

Thousands of children in grades 1* through 7

in public and parochial schools in every state in the Union, District of
Columbia, Hawaii and Alaska submitted drawings.

These were evaluated by

a committee headed by Gus Edson, chairman of the National Cartoonists Society
advisory committee for the United States Savings Bonds Division.

Other

members of the committee are Alex Raymond, President of the Cartoonists
Society, and Walt,Pa «anpy, Hilda Teriy, Rube Goldberg, Russell Patterson,
A

A1 Posen, Milton Caniff and Ham Fisher.
After screening by regional committees set up by Mr. Edson, about 500
drawings reached final judging.

This resulted in selection of the following

12 children for a visit to the White House to meet the President and show
him their handiworks

TREASURY DEPARTMENT
Information Service
RELEASE
M a y 27,

S U N D A Y N EWSPAPERS,
1951-_____
• ____

WASHINGTON, D .C .
S-2 70 3

S e c r e t a r y S n y d e r a n n o u n c e d t o day that the N a t i o n a l C a r t o o n i s t s
Society, c o - s p o n s o r s w i t h the T r e a s u r y ' s Savings B o n d s D i v i s i o n
of the " D r a w the D r e a m Y o u Save For" a rt p r o j e c t in the na t i o n ' s
e l e m e n t a r y schools, h a d m a d e its s e l e c t i o n s of the b e s t sketches
s u b m i t t e d in the competition.
T w e l v e children, r a n g i n g from 10 to 14 y e ars of age, w h ose
d r a w i n g s w e r e c o n s i d e r e d b y the c a r t o o n i s t s to h a v e b e e n o u t s t a n d ­
ing, w i l l be c o n g r a t u l a t e d b y P r e s i d e n t T r u m a n at the W h i t e H o u s e
nex t Monday.
T h e y w i l l be accompanied, b y t h eir teachers.
The y o u t h f u l a r t ists d e p i c t e d i n r e a l i s t i c -fashion the goals
t h e y and their families are s a v i n g for t h r o u g h s y s t e m a t i c i n ­
v e s t m e n t in U n i t e d States Savings B o n d s a n d Stamps.
T h o u s a n d s of
c h i l d r e n in grades h t h r o u g h 7 in p u b l i c and p a r o c h i a l schools in
e v e r y state in the Union, D i s t r i c t of Columbia, H a w a i i a n d A l a s k a
s u b m i t t e d d r a w i n g s . These were e v a l u a t e d b y a c o m m i t t e e h e a d e d
by Gus Edson, c h a i r m a n of the N a t i o n a l C a r t o o n i s t s S o c i e t y a d ­
v i s o r y com m i t t e e for the U n i t e d States Savings B o n d s D i v i s i o n .
O t h e r m e m b e r s of the committee are A l e x Raymond, P r e s i d e n t of
the C a r t o o n i s t s Society, a nd Charles B i r o / H i l d a Terry, Rub e
Goldberg, R u s s e l l Patterson, A 1 Posen, M i l t o n C a n i f f a nd H a m
Fisher .
A f t e r s c r e e n i n g b y r e g i o n a l com m i t t e e s set up b y Mr. Edson,
about 500 d r a w i n g s r e a c h e d final judging.
This r e s u l t e d in
s e l e c t i o n of the f o l l o w i n g 12 c h i l d r e n for a v i s i t to the W h i t e
H o u s e to m e e t the P r e s i d e n t and sho w h i m their h andiwork:
V i d a l Casiquito, Jr., Jemez D a y School, Jemez Pueblo,
New Mexico
B e r n a r d Chavers, M a d i s o n St,. School, Ocala, F l o r i d a
N a n c y Loui s e Dutton, T. A. E d i s o n School, Glendale, .
California
S u s a n Fraser, I r v i n g J u n i o r High, Lincoln, N e b r a s k a
R o b e r t Keegan, Saint M o n i c a School, N e w Y o r k 21, N.Y.
A n n e t t e Kenner,- H i c k s v i l l e E x e m p t e d V i l l a g e School,
H i c k s v i l l e , Ohio
M a r y A n n Parkinson, R a c c o o n School, R o u t e 1, Centralia,
Illinois
R o s a l i e Rosen, Phillips Jr. H i g h School, M i n n e a p o l i s ,
Minnesot c l
D a v i d Sliger, W a s h i n g t o n School, O k l a h o m a City, O k l a h o m a
L i n d a Smith, B o l t o n School, Bolton, G e o r g i a
B e r n i c e Snyder, M i l f o r d M i l l Jr. High, B a l t i m o r e , M a r y l a n d
E l i s s a V o n L e t k e m a n n , H a d l e y Jr. H i g h School, Swampscott,
Massachusetts

2

588

In addition to the 12 top drawings, the President will see
sketches by the following children who won honorary mention:
Mark Hildebrand, Sunset School, Carmel, California; Ellis Walker,
Stevens School, Stamford, Conn.; Edith Chamberlain, Kay Avenue
School, Milford, Conn.; Richard Brello, Rice School, Stamford,
Conn.; Willie Lee Sims, Howard Academy Elementary School, Ocala,
Florida; Phyllis Cole, Bolton School, Bolton, Georgia; Susan
Voska, Hobel School, Chicago; Yolanda Tulla, McLaren School,
Chicago; Janice Morys, Pulaski School, Chicago; Faye Harrison,
Holy Trinity School, Luxemburg, Iowa; Carol Beattie, Iowa
School for the Blind, Vinton, Iowa; Tex Stout, Wichita, Kansas;
Rosalie Berinato, Patrick T. Campbell School, Boston: Maureen
Sullivan, Peabody School, Cambridge, Mass.; David Mehlin,
W. G. Mitchell School, Williamstown, Mass.; Judy Mahle, Groveland Park School, St. Paul, Minn.; Robert Stein, Phillips Jr.
High School, Minneapolis, Minn.; Barbara McDaniel, Carver
School, St. Louis, M6 .; Naaman Cole, Carver School, St. Louis,
Mo.; William Ingram, Lincoln School, St. Louis, Mo.; Edward
Presson, East Prairie Jr. High, East Prairie, Mo.; Monty
Dennison, Carthage, Mo.; Larry K r i n g s , St. Leo's Elementary
School, Lewiston, Montana; Lorenzo Coriz, U. S. Indian School,
Santa Fe, Hew Mexico; Clair Morgan, Irving Junior High School,
Lincoln, Nebraska; Hazel Gale, Bacon School,'.Millville, New
Jersey; Ellen Eisenberg, P. S .63 Manhattan;’Kenneth Farrell,
School No. 51, Buffalo, New York; Mary Frances Fenton, Harding
Jr. High, Oklahoma City, Okla.-; Allen Ray See, Harrison School,
Shawnee, O k l a .; Beverly Crowley, Longfellow School, Sioux Falls,
South Dakota; Joe Roberson, Peytonsville School, Franklin,
Tennessee* Eugene Sowell, Parkview School, Jackson, Tennessee;
Judy Sheider, Armstrong-School, Dallas, Texas and James
Featherstone, Groveton School, Alexandria, Virginia.
In announcing the success of the student art project, Secre­
tary Snyder said;
"American youths are not just dreaming about
their goals; they are taking Important steps toward reaching
those goals by purchasing Defense Bonds and Stamps through the
School Savings Program.
"Sales of 10-cent Stamps during the current school year
(through April 30) are 32 percent ahead of the same period in
the 1949-50:school year.
In dollar volume, all Stamp sales are
averaging $1 ,3 0 0 ,0 0 0 per month -- 6 percent more than the aver­
age for the same period last year.
"Through School Savings, our youthful citizens are learning
to plan for their future well-being and to become shareholders
in .America. < They are becoming increasingly conscious of the role
they will play as adult, responsible citizens."

Note to correspondents:
White House photographers
may take pictures of the drawings when the President
views the exhibit (conference room, east wing of White
House) at 3:00 p.m., Monday, May 28.

086
« m m » ucstHiüo n
The

BmmimiÊf

$1,100,^00,000,

iw ,
ef

%im t m m m y

mm&mimâ

iBareabouta, ef ?X-day

î m &%

t m m m

eventeg thai thè tender» fer
bili*

« I » Auguat $$, SSSft* vhieh ver» offered on il»y

te he dated îftgr 31 and to

«ri opete at the Federai Ee~

»©rve Basica en iay 2B#
Th® detail» of tiiia leene are a» foU an t

Total asuMed fer —&L,907,257,000

Total occepted

- 1,100,630,000 (include* $9ê,JéôU,OO0 entered en a

Average Prie#

• 99*596 Equivalent rate of dìeeooot apprm* 1.6001 per amer*

non-eouipetitive haai» and aoeeptcd la
feH a t the average pria« ehoen beXov)

fiâiig# of aceepted competitive biciss
99M

High

10 EqalvaXeat rate of diaeooxxt appresa« 1#503$ par amm

9% $ $ k

9

n

m

*

»

1 ,606£

11

(7 0 p e s e te o f tha avouai Md f o r a t th e l a * p rie r vas æ cep ted )

Federai îtaeerve
Bietrlct

Total

Total

Boato»

I

I

Applied for
&,3 JS, 303

1,481,021,000

8,385#*»

Cleveland
Richmond

2 7 .8 6 9 .0 0 0
3 3 .8 1 1 .0 0 0
8 .7 2 5 .0 0 0

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

Atlanta

11,826,000

1 1 .526.0 00

t e

t e s

flil

227,392,000
21

Chicago

St# ionia

,408,000

Hinnoapolia
m
cit^

Dalla»
t e Franeiac©
tosti

1 6 7 .6 9 2 .0 0 0
1 4 .4 5 2 .0 0 0

2 .160 .0 0 0

2 ,1 6 0 ,0 0 0

2 7 .3 7 8 .0 0 0
2 4 .3 5 7 .0 0 0

2 5 .878.000

3 5 ,3 5 7 ,0 0 0

* 1 ,9 6 ? ,2 5 7 ,0 0 0

8 1 ,1 0 0 ,6 8 8 ,0 0 0

*

m

TREASURY DEPARTMENT

R E L EASE M O R N I N G NEWS P A P E R S ,
Tuesday, M a y 29, 1951»
__

S -2 7 04

The S e c r e t a r y of the T r e a s u r y a n n o u n c e d last e v e n i n g that the
tenders for $ 1 * 1 0 0 , 0 0 0 , 0 0 0 , or thereabouts, of 9 1 - d a y T r e a s u r y .bills
to be d a t e d M a y 31 a nd to m a t u r e A u g u s t 30, 1951, w h i c h w e r e o f f e r e d
on M a y 24, wer e o p e n e d at the F e d e r a l Re s e r v e B a n k s on M a y 28.
The d e t a i l s

of this issue are as follows:

T o t a l a p p l i e d for - $ 1 , 9 6 7 , 2 5 7 , 0 0 0
Total accepted
1,100,688,000

A v e r a g e p r ice

!2$

Range

of a c c e p t e d c o m p e t i t i v e bids:

ïïigh
Low

(70

(includes $ 9 8 , 4 6 4 , 0 0 0 e n t e r e d
on a n o n - c o m p e t i t i v e b a sis
a nd a c c e p t e d in full at the
a v e r a g e p r ice s h o w n below)
- 9 9 -596 E q u i v a l e n t rate of d i s c o u n t approx.
1 .6 0 0 $ p e r a n n u m

percent

- 9 0 . 6 2 0 E q u i v a l e n t rate
1.503$
- 99-5 9 4 E q u i v a l e n t rate
1 .6 0 6 $
of the a m o u n t b id for at

TOTAL

the low p r ice was acc e p t e d )

T o tal
A p p l i e d for

Federal R e s e r v e
District
Boston
New Y o r k
Philadelphia
Cleveland
Richmond.
Atlanta
Chicago
3t. Louis
Minneapolis
Cans as C i t y
Cal las
3an F r a n c i s c o

of d i s c o u n t approx,
per annum
of d i s c o u n t approx,
p er annum'

Total
Accepted

24.357.000
92.431.000

8,385,000
764.312.000
1 2 ,8 6 9 , 0 0 0
3 1 ,7 1 1 , 0 0 0
7 ,0 2 5 , 0 0 0
11.526.000
1 6 7 .6 9 2 . 0 0 0
1 4 .4 5 2 . 0 0 0
2 ,1 6 0 , 0 0 0
2 5 .8 7 8 . 0 0 0
15.357.000
39.321.000

$ 1 ,9 6 7 ,2 5 7 , 0 0 0

$1, 100, 688,000

$

8 , 3 8 5 , 0 0 0

1,481,021,000
2 7 ,8 6 9 , 0 0 0
33.811.000
8 ,7 2 5 , 0 0 0

.

11 826.000

227,392,000
21.402.000
2 ,1 6 0 , 0 0 0

27

. 8 7 8 . 0 0 0

0 O0

$

- 3 J-T-TYTT a

aSm-

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 h2 and 117 (a) (1) of the Internal Revenue Code,

as amended by Section ll£ of the Revenue Act of 19hl, the amount of discount at
which bills issued hereunder are sold shall not be considered to accrue until
such bills shall be sold, redeemed or otherwise disposed of, and such bills are
excluded from consideration as capital assets.

Accordingly, the owner of

Treasury bills (other than life insurance companies) issued hereunder need in­
clude in his income tax return only the difference between the price paid for
such bills, whether on original issue or on subsequent purchase, and the amount
actually received either upon sale or redemption at maturity during the taxable
year for which the return is made, as ordinary gain or loss.
Treasury Department Circular No. Ul8, as amended, and this notice, prescribe
the terms of the Treasury bills and govern the conditions of their issue.
of the circular may be obtained from any Federal Reserve Bank or Branch.

Copies

-

2

-

unless the tenders are accompanied by an express guaranty of payment by an in­
corporated bank or trust company.
Immediately after the closing hour, tenders will be opened at the Federal
Reserve Banks and Branches, following which public announcement will be made by
the Secretary of the Treasury of the amount and price range of accepted bids.
Those submitting tenders will be advised of the acceptance or rejection thereof.
The Secretary of the Treasury expressly reserves the right to accept or reject
any or all tenders, in whole or in part, and his action in any such respect shall
be final.

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

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

Settlement for

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

June 7, 1951
> in cash or other immediately avail--- ----- 1
-------a

XZ

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

June 7. 1951
Xu

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 now or hereafter imposed on the principal or interest thereof by

w s w m x

TREASURY DEPARTMENT
Washington

//J-Q7

FOR .RELEASE, MORNING NEWSPAPERS,
Tuesday, May 29, 1951_________ *
iST”

^J

The Secretary of the Treasury, by this public notice, invites tenders for
$ 1,100 m 0,000 , or thereabouts, of

91

-day Treasury bills, for cash and
to be issued on

a discount basis under competitive and non-competitive bidding as hereinafter
provided.
will mature
interest.

The bills of this series will be dated
September 6, 1951

June 7, 1951_______ > and

* when the face amount will be payable \fithout

They m i l be issued in bearer form only, and in denominations of

Tenders will be received at Federal Reserve Banks and Branches up to the
Daylight Saving
ime, Friday, June 1« 1951
closing hour, two o ’clock p.m., E
!

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
theexchange
price offered
must bebills
expressed
on the June
basis7 of1951
100, with not more than three
in
for Treasury
maturing
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 Troasury bills applied for,

R

TREASURY DEPARTMENT
Information Service

RELEASE M O R N I N G NEWSPAPERS,
Tuesday., M a y 29, 1951.

WASHINGTON, D .C .

594
s-2705

The S e c r e t a r y of the Treasury, b y this p u b l i c notice, i n v ites
tenders for $ 1 , 1 0 0 , 0 0 0 , 0 0 0 , or thereabouts, of 9 1 - d a y T r e a s u r y bills,
for cash and in e x c h a n g e for T r e a s u r y bills m a t u r i n g June 7 , 1951, to
be issued on a d i s c o u n t basis u n d e r c o m p e t i t i v e a n d n o n - c o m p e t i t i v e
bidding'as h e r e i n a f t e r provided.
The b i l l 3 of this series w i l l be
dated June 7 , 1951* and w i l l m a t u r e S e p t e m b e r 6 , 1 9 5 1 , w h e n the face
amount w i l l be p a y a b l e w i t h o u t interest.
T h e y w i l l be i s sued in
bearer f o r m only, and in d e n o m i n a t i o n s of $ 1 , 0 0 0
5,000 $ 10 , 000,
$ 1 0 0 ,0 0 0 , $ 5 0 0 , 0 0 0 , a nd $ 1 , 0 0 0 , 0 0 0 ( m a t u r i t y value)
Te n d e r s w i l l be r e c e i v e d at F e d e r a l R e s e r v e B a n k s a nd B r a n c h e s
up to the c l o s i n g hour, two o ' c l o c k p.m.,. E a s t e r n D a y l i g h t S a v i n g
time, Friday, June 1, 1951.
T e n ders w i l l n o t be r e c e i v e d at the
Treasury Depa r t m e n t , W a s h i n g t o n .
E a c h tend e r m u s t be for a n e v e n '
multiple of $ 1 , 0 0 0 ,. a nd in the case of c o m p e t i t i v e tenders the price
offered m u s t be e x p r e s s e d on the basis of 1 0 0 , w i t h n ot m o r e than
three decimals, e. g . , 99.925*
F r a c t i o n s m a y n ot be used.
It is
urged that tenders b e m a d e on the p r i n t e d forms a n d f o r w a r d e d in the
special e n v e l o p e s w h i c h w i l l be s u p p l i e d b y F e d e r a l R e s e r v e B a nks or
Branches on a p p l i c a t i o n therefor.
Others 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 not be p e r m i t t e d to submit
tenders e x c e p t for their own account.
T e n ders w i l l be r e c e i v e d
without d e p o s i t fro m i n c o r p o r a t e d banks a n d trust com p a n i e s and fro m
responsible an d r e c o g n i z e d d e a lers in i n v e s t m e n t s e c u rities.
Te n d e r s
from others m u s t be a c c o m p a n i e d by p a y m e n t of 2 p e r c e n t of the face
amount of T r e a s u r y bills a p p l i e d for, unless the tenders are
a ccompanied b y an ex p r e s s g u a r a n t y of p a y m e n t b y a n i n c o r p o r a t e d b a n k
or trust company.
I m m e d i a t e l y a f t e r the c l o s i n g hour, tenders w i l l be o p e n e d at
the F e d e r a l R e s e r v e B a n k s and Bra n c h e s , f o l l o w i n g w h i c h p u b l i c
a nnouncement w i l l be m a d e b y the S e c r e t a r y of the T r e a s u r y of the
amount and p r ice range of a c c e p t e d bids . Those s u b m i t t i n g tenders,
will be a d v i s e d of the a c c e p t a n c e or r e j e c t i o n thereof.
The S e c r e t a r y
of the T r e a s u r y e x p r e s s l y re s e r v e s the right to a c c e p t or r e j e c t a n y
or all tenders, in w h o l e or in part, and h is a c t i o n in a n y such
respect shall be final,
S u b j e c t to these reser v a t i o n s , non-competitive
tenders for $ 2 0 0 , 0 0 0 or less w i t h o u t stated price fro m a n y one b i d d e r
will be a c c e p t e d in full at the a v e r a g e p r ice (in three dec i m a l s ) of-

2
a c c e p t e d c o m p e t i t i v e bids.
S e t t l e m e n t for a c c e p t e d tenders in
a c c o r d a n c e w i t h the bids m u s t be m a d e or c o m p l e t e d at the F e d e r a l
R e s e r v e B a n k on June 7, 1951, in cash or other i m m e d i a t e l y a v a i lable
funds or in a like face a m o u n t of T r e a s u r y b i lls m a t u r i n g June 7,
1951.
Cas h a nd e x c h a n g e tenders w i l l re c e i v e e q u a l t r e a t m e n t . Cash
a d j u s t m e n t s .will be m a d e for d i f f e r e n c e s b e t w e e n the p a r v a l u e of
m a t u r i n g bills a c c e p t e d in e x c h a n g e and the. issue p r ice of the n ew
bills.
The income d e r i v e d f r o m T r e a s u r y b i l l s , w h e t h e r i n t e r e s t or gain
from the sale or o t h e r d i s p o s i t i o n of-the bills, shall n ot h a v e any
e x e m p t i o n , as such,, and loss f rom 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, u n der
the I n t e r n a l R e v e n u e Code, or laws a m e n d a t o r y or s u p p l e m e n t a r y thereto
The bills, shall be subject to estate.,, inheritance, gift or othe r
exci s e taxes, w h e t h e r F e d e r a l or State, but shall be e x empt f r o m all
t a x a t i o n n o w or h e r e a f t e r i m p o s e d on the p r i n c i p a l or i n t e r e s t thereof
by a n y State, or a n y of the p o s s e s s i o n s of the U n i t e d States, or by
a n y local t a x i n g a uthority.
F o r p u r p o s e s of t a x a t i o n the a m o u n t of
d i s c o u n t at w h i c h T r e a s u r y b i lls are o r i g i n a l l y sold b y the U n i t e d
States shall be c o n s i d e r e d to be interest.
U n d e r S e c t i o n s 42 and
117 (a.) (l) of the I n t e r n a l R e v e n u e Code, as a m e n d e d b y S e c t i o n 115
of the R e v e n u e A c t of 1941, the a m o u n t of d i s c o u n t at w h i c h bills
i s s u e d h e r e u n d e r are sold shall not be c o n s i d e r e d to a c crue u n t i l
such b i lls shall be sold, r e d e e m e d or o t h e r w i s e d i s p o s e d of, a nd such
bills are e x c l u d e d fro m c o n s i d e r a t i o n as c a p ital assets.
Accordingly,
the o w ner of T r e a s u r y bills (other t h a n life in s u r a n c e c o m p anies)
i s s u e d h e r e u n d e r n e e d include in h is i n come tax r e t u r n onl y the
d i f f e r e n c e b e t w e e n the price p a i d f or such bills, w h e t h e r on original
issue or on s u b s e q u e n t purchase, and the a m o u n t
actually received
e i t h e r u p o n sale or r e d e m p t i o n at m a t u r i t y d u r i n g the taxable y e a r
for w h i c h the r e t u r n is made, as o r d i n a r y g a i n or loss.
T r e a s u r y D e p a r t m e n t C i r c u l a r No. 4l8, as amended, a nd this
notice, p r e s c r i b e the terms of the T r e a s u r y bills a nd g o v e r n the
c o n d i t i o n s of their issue.
Copies of the ci r c u l a r m a y be o b t a i n e d
f r o m a n y F e d e r a l R e s e r v e B a n k or Branch.

0 O0

to the Nation and to the Service of
| i§ ' ? W
' i ü I ItSSfl ||p$|

which you are a part.

m m ;,i

('"‘’I

c
"
°
t

OÜQ

V

W

1 1:no% that the o eréon
Cod st f i | ! |jj§

P

inc 1ud ing tocay s

gra duates of this ¿_acad m y, share
in that strength of sp rit, and
w 11 1 play the ir p art |
p it

we move toward the

trsnoui I days,
L t me assure you that
i

aitch

interest.

sha I I

careers with personaI
I have every confidence

that your record will be outstanding
and that you will bring new honor

We are building up our military
forces

in such a way as to make ft

plain to all aggressors that it would
be folly to attack us.
K

'•

”'i'’ "

*

u

\

X

' . J ' ' J L

’ *v

And, at the
■■ ,

v . .. j

same time we are working to preserve
our economic stability.
The strength of spirit that
carried us through many another stormy
time, and enabled our country not
only to survive but to forge constantly
ahead, remains the solid foundation
of our hopes and our undertakings.

30
nation’s present position in world
affairs.

But I want you to know

that I have full fa ith in the ability
of our country to meet every
difficulty and every threat.
Peace with freedom andfjustice
is the ultimate goal of our defense
program,

This goal can be attained

if we couple courage and firm action
wi th foresi ght and seIf-restraint,

■m "'
’P

| x‘*

'

basing our decisions on reason, not
emoti on.

o-

29

development requires breadth of
..

%

mind on the part of all Coast
Guard personnel.

The greater the

understanding you have of the
events and the background of your
times, both historic and economic,
the more significant will be your
work.
I have referred to the present
:

/"

■

.
*

.

•

■.

m

‘ ''

:;
■

as one of the most critical times
in American history, and mentioned the
very heavy responsibiIities of our

wish to be respected.

Above ail,

he must b'e fair.
The attributes of leadership
apply not only in the relationship
between an officer and the men in
his command, but also in his
contacts with the public. (I hope
that the officers of the Coast
Guard, in their concern for
•

B

m

1X

-' ;
-

i; '*■'A

lHIIi 9KB ::

im M M

¡f£

i

l'

•'

/. P !

- ,

.

. m

i|

proficiency in the service, never
lose interest in the world around
- them.

The Coast Guard performs

a very broad service, and its full

id

27

a true leader Is something which
each of you must discover individually tj
in the course of the duties on which
you are entering.
There are, of course, certain
dependable guideposts.

A leader

must have seIf-controI.

He should

live up to his responsibiIities.
He should never ask for an effort
greater than he-himself would be
willing to put forth.

He must respect

his feliowman as he would in turn

this vay only that true
leadership can be achieved.fand
that the mutual attainment of a
common goal can be real ized to the

full.
Y o u r success as officers will

be dependent in the last analysis
upon the performance of your men.
There is no magic touchstone -there is no boay of knowledge -which can give you a guarantee of
success in this area.

How to become

meet s
lence.
prerequi s ite

tests of time and
G

"ac

s a

' every officer

wants to advance in his profession.
In practice, successf u
eade ship grows out of a m a n ’s
iiity to interest himself in the
people w i1

i s wo r k i ng

time to Iearn the ir
problems, then to endeavor to see
through their eyes the effects of
decisions he must maKe.

It is in

24
interests and your own individual
careers, but as an important service
which you as United States officers
can render your country.
As you no doubt have learned
during your period of attendance
at the Academy, successful leadership
is an intangible thing, dependent
only in part on the acquirement of
necessary techniques and procedures.
Successful

leadership always

has character as its basis; no other

after the close of florid Aar II to
give the young people who had been
in the armed services the widest
possible opportunities for further
study and education.

As graduates

of the Coast Guard Academy, you too
will have a wide choice of
opportunities for further intellectual
advancement.

Let me urge you to

taKe every advantage of these
opportun 11ies; not only from the
point of view of your own best

productive genius,

Our young people,

more than in any other country in the
world, are encouraged to thinK for
themselves.

They are encouraged to

try out new ideas, and to worK with
others in putting these ideas into
practice.

This environment -

so

encouraging to bold and rapid
action -«• proved to be one of our
most precious wartime assets.
Recognizing this important
truth, our Nation made every effort

\ Od
-

21

-

As J thinK of the contributions
ich these officers will be able
to maKe in the course of their later
I

N

service, II
cannot help but recall
--- an important lesson of World War II.
During those critical years,

it

became increasingly apparent that
our spectacular wartime achievements
in the field of science and
technology were made possible by an
environment particularly favorable
to -the development of inventive and

i

-

20

Coast Guard officers are studying
in private institutions of higher
learning.

The list of institutions

is impressive.

It includes many

of the leading schools of this
country.
The Academy graduates who are
studying in these institutions are
investigating a wide body of
Knowledge which extends from
engineering and mathematics to
admi n istrat ion, finance and law.

19 You Coast Guard officers have
already had exceptionally rich
opportunities for drawing on the
techniques and the accumulated
Knowledge of our modern American
economy.

You have learned to apply

this Knowledge in gaining new tools
for use in your specific taSKS.
Many of you will go on to broaden

the bacKground and further perfect
the

sk¡

M s which you have gained

at the Academy.

At present, 34

013

*•

10
io *

déterminât ion to preserve our
freedom are being tested —

and they

will be tested many times over.

To

meet these tests, wherever and in
whatever form they occur, we must
Keep before us at all

times the

primary goal of conserving our
economic strength,

ie must maKe

sure that our entire storehouse of

Knowledge and of resources is fully
utiIized by those who are charged
with the defense of our Nation*
4

17

of the entire Nation.

A modern

Nation must both out-thinK and
out-produce the enemy if it is to
win military success.
The importance of these facts
is underscored by the present position
of the United States as a partner
among nations enlisted
of freedom.

in the cause

The aggressor nations

have served notice that they are
setting cut on a world-wide course
of domination.

Our ability and our

16

conserving the energies of an entire
people, at the same time that all of
the vast needs of a modern war
organization are fully and promptly
m et.
WorId War I, and to a far
greater extent World War II,
demonstrated that effective military
operations under conditions of modern
mechanized warfare must be supported
constantly by a vast output from
the factories and mines and farms

15 and full use of economic resources
were adequate only in times when
methods of warfare were relatively
simple.

They were effective only

because armies were largely sustained
by means of pi under.
The development of the use of
gun powder and the complicated
weapons which followed, changed the
conditions of waging war.

The true

reserve of the present day must be
a productive capacity capable of

- 14 J

importance as a means of exchange,
it became common to build up
treasure chests for the use of the
¥f|

state.

;

When danger threatened, these

hoards of money and valuables made
it possible to accumulate needed
supplies and services quiCKly.

This

practice was common during Greex and
Roman times and even persisted

into

the Middle Ages and later.
But it is obvious that such
primitive measures for the mobilization

A

the homefront.

During primitive

times, when most things in use were
produced at home or in neighboring
areas, the problem of mobilizing
the defensive powers of the community
was relatively simple.

Levies for

defense and war were exacted

in Kind.

Civilian and military needs were
merged,

and the one question at

issue was survival -- for the
individual and for the group.
¡¡Illter on, when money grew in

12

-

The technical training which you
have received during your period of
study and the technical Knowledge
which you have accumulated emphasize
the close relation which exists
nowadays between military achievements
and our productive power and scientific
sk i IIs.

Military success has come

to depend heavily on complicated
scientific techniques as well as on
an enormous flow of supplies from

\

training of officers reaches so
deeply

into the accumulated Knowledge

and the technical processes of
civilian life.

The strategic

position which the American economy
occupies in world affairs is without
doubt the most

important military and

political factor

in the world today.

It is the most significant element
in any broad program for the
mobilization of our resources in
order to strengthen our defenses

10

in the performance of Its functions.
The discipline of the Academy and of
your cruises has given you additional
preparation for the leadership that
is the most important quality of an
off icer,
I am sure that every member
of this class realizes that he is
entering on the responsIbiIities
of leadership at one of the most
critical times in our entire history.
Because of this fact,

it is extremely

significant that the present day

nav igati onal hazards.

Marine

inspection certainly falls under the
heading of an activity in foresight.
Today, you graduates are just
closing a period of intensive
preparation for the specific duties
of officership.

Your technical

training has given you a foundation
for dealing with the devices which
ggjg
science has placed in your hands in
the operation of the physical
equipment used by the Coast Guard

fivri

c ir

calls for immediate

action

respons

M

Guard is to see to it,
as possible, that ’’unforeseen
comb inat ions of c ircums

:>

L

sM do not

search and rescue

its far-flung system
t
f
V.«f

stations,
F atro I

all serve this important
The establishment of

lighthouses,

long ago, was an effort

accidents arising from
H

' ‘'G È

these reasons,l/some persons may have
a notion that the Coast Guard is a
service organized solely for the
purpose of meeting emergencies.
Such a notion does an injustice.
The primary function of the Coast
Guard is not to meet emergencies,
although it is important that the
service and its individual members,when an emergency does occur,
unfailingly rise to the occasion.
The dictionary defines an emergency
as an ’’unforeseen combination of

This reputation of the Academy
and this tradition of the Coast
Guard Service are the outgrowths
of a long chain of day-to-day events
I think the public generally is
well informed of the heroic acts |||||
and v ictor ies of Coast Guardsmen
in time of war.

The exploits of

Coast Guard vessels and airplanes
in performing dramatic rescues in
peacetime are also well known
and are long remembered.

For

thet educators generajIy concede no
better primary engineering training

can be a btained any*h ere.

In additi

to this the graduates of the Academy
come out *eI 1 grounds d in the basic
speci iIi ies required for a varied
and comp lex Service,

For more

than ISO years, the C 08 St Guard and
i t s If Ip ecessor serv iC f*C have built
'm ?'

’

s tradition of toy ally, a.1ertnes 1
anci effectiveness *h i
famous throughout the world.

campus.

They read:

"It is a

tradition at this school that
students will not walk on the grass
This tradition will take effect
immediate Iy."
The Coast Guard Academy and the
Coast Guard have not built their
traditions by such overnight
decisions from headquarters.

Ever

since the Coast Guard Academy was
founded, it has set a standard of
educational accomplishment so high

importance in
this r
The other day, I heard of an
incident that took place at one of
the schools which sprang up
shortly after the last war to
accommodate the greatly increased
number of young men and women seeking
higher education,

When the students

came from their dormitories one
morning they noticed that new

thoroughly worthwhile careers in an
arm of the Government service over
which 1 exercise official supervision
Year by year, this institution
furn ishes the vitally necessary new
officer personnel which enables the
Un ited States Coast Guard to
overcome the attrition due to
resignations and retirements.

By so

doing, the Academy makes a noteworthy
contribution to the public interest.
And 1 am sure

s pub lie is well

t'Sd

occasion in
find much

pleasure and in

g

which I take genuine pride.
it is pleasant, indeed, to meet
th a group of

Amer !cans
i

accomp1ished the difficult task
of completing the superior courses of
study and training for which the Coast
Guard Academy is so

it

is an occasion in
deal of pride because these
exercises mark for the graduates the
g inn Ing

t I

sure will be

mmma n sxofuam atrsn

of

ik s. oo4sf ma» ¿cjjbikt

Coa&eetlcut
* Xf51

The f o l l o w i n g a d d r e s s by S e c r e t a r y S n yder at
the 65t h C o m m e n c e m e n t E x e r c i s e s of the U n i t e d
S t a t e s C o ast G u a r d Academy,
C o nnecticut,
3 : 0 0 p.m.

N e w London,

is s c h e d u l e d for d e l i v e r y a t

( E D T ) , Friday,

June

is for r e l e a s e at that time.

1,

1951,

and

TREASURY DEPARTMENT
Washington
The following address by Secretary Snyder
at the 6% th Commencement Exercises of the
United States Coast Guard Academy* New London,
Connecticut, is scheduled for delivery at
3:00 p. m. (EDT)» Friday, June 1» 1951>'"and
is for release at that time«

This is an occasion in which I find much genuine pleasure and in
which I take genuine pride*
It is pleasant, indeed, to meet with a group of young Americans who
have accomplished the difficult task of completing the superior courses
of study and training for which the Coast Guard Academy is so well known*
It is an occasion in which I take a great deal of pride because these
exercises mark for the graduates the beginning of what I am sure will be
thoroughly worthwhile careers in an arm of the Government service over
which I exercise official supervision.
Year by year, this institution furnishes the vitally necessary new
officer personnel which enables the.United States Coast Guard to over­
come the attrition due to resignations and retirements. By so doing,
the Academy makes a noteworthy contribution to the public interest. And
I am sure the public is well aware of the Academy1s importance in this
respect.
The other day, I heard of an incident that took place at one of the
schools which sprang up shortly after the last war to accommodate the
greatly increased number of young men and women seeking higher education*
When the students came from their dormitories one morning they noticed
that new signs had been placed about the campus. They read: 11It is a
tradition at this school that students will not walk on the grass. This
tradition will take effect immediately.”
The Coast Guard Academy and the Coast Guard have not built their
traditions by such overnight decisions from headquarters. Ever since
the Coast Guard Academy was founded, it has set a standard of educational
accomplishment so high that educators generally concede no better primary
engineering training can be obtained anywhere.
In addition to this the
graduates of the Academy come out well grounded in the basic specialties
required for a varied and complex Service. For more than 160 years, the
Coast Guard and its predecessor services have built a tradition of
loyalty, alertness and effectiveness which has become famous throughout
the world.
This reputation of the Academy and this tradition of the Coast
Guard Service are the outgrowths of a long chain of day-to-day events.
I think the public generally is well informed of the heroic acts and
victories of Coast Guardsmen in time of war. The exploits of Coast
Guard vessels and airplanes in performing dramatic rescues in peace­
time are also well known and are long remembered. For these reasons,

S-2706

630

631
-

2

-

some persons may have a notion that the Coast Guard is a service organ­
ized solely for the purpose of meeting emergencies.
Such a notion does an injustice. The primary function of the Coast
Guard is not to meet emergencies, although it is important that the *
service and its individual members, when an emergency does occur, un­
failingly rise to the occasion. The dictionary defines an emergency as
an "unforeseen combination of circumstances which calls for immediate
action," A chief responsibility of the Coast Guard is to see to it, so
far as possible, that "unforeseen combinations of circumstances" do not
happen.
The Coast Guard search and rescue program, its far-flung system of
weather stations, the Iceberg Patrol — all serve this important purpose.
The establishment of lighthouses, long ago, was an effort to prevent
accidents arising from navigational hazards. Marine inspection certainly
falls under the heading of an activity in foresight.
Today, you graduates are just closing a period of intensive prepa­
ration for the specific duties of officership, lour technical training
has given you a foundation for dealing with the devices which science
has placed in your hands in the operation of the physical equipment
used by the Coast Guard in the performance of its functions. The disci­
pline of the Academy and of your cruises has given you additional prep­
aration for the leadership that is the most important quality of an
officer.
I am sure that every member of this class realizes that he is
entering on the responsibilities of leadership At one of the most critical
times in our entire history. Because of this fact, it. is extremely sig­
nificant that the present day training of officers reaches so deeply into
the accumulated knowledge and the technical processes of civilian life.
The strategic position which the American economy occupies in world affairs
is without doubt the most important military and political factor in the
world today. It is the most significant element in any broad program for
the mobilization of our resources in order to strengthen our defenses
against aggression.
The technical training which you have received during your period 'of
study and the technical knowledge which you have accumulated emphasize
the close relation which exists nowadays between military achievements
and our productive power and scientific skills. Military success has
come to depend heavily on complicated scientific techniques as well as on
an enormous flow of supplies from the horaefront. During primitive times,
when most things in use were produced at home or in neighboring areas,
the problem of mobilizing the defensive powers of the community was rela­
tively simple. Levies for defense and war were exacted in kind. Civilian
and military needs were merged, and the one question at issue was survival —
for the individual and for the group.

632
- 3

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 made it possible to
accumulate needed supplies and services quickly. This practice was common
during Greek and Roman times and even persisted into the Middle Ages and
later.
But it is obvious that such primitive measures for the mobilization and
full use of economic resources were adequate only in times when methods of
warfare were relatively simple. They were effective only because armies
were largely sustained by means of plunder.
The development of the use of gun powder and the complicated weapons
which followed, changed the conditions of waging war. The true reserve of
the present day must be a productive capacity capable of conserving the
energies of an entire people, at the same time that all of the vast needs
of a m o d e m war organization are fully and promptly met.
World War I, and to a far greater extent World War II, demonstrated
that effective military operations under conditions of m o d e m mechanized
warfare must be supported constantly by a vast output from the factories and
mines and farms of the entire Nation. A m o d e m Nation must both out-think
and out-produce the enemy if it is to win military success.
The importance of these facts is underscored by the present position
of the United States as a partner among nations enlisted in the cause of
freedom.
The aggressor nations have served notice that they are setting
out on a world*-wide course of domination.
Our ability and our determination
to preserve our freedom are being tested — and they will be tested many
times over.
To meet these tests, wherever and in whatever form they occur,
we must keep before us at all times the primary goal of conserving our
economic strength. We must make sure that our entire storehouse of knowl­
edge and of resources is fully utilized by those who are charged with the
defense of our Nation.
You Coast Guard officers have already had exceptionally rich opportunities
for drawing on the techniques and the accumulated knowledge of our modern
American economy. You have learned to apply this knowledge in gaining new
tools for use in your specific tasks. Many of you will go on to broaden the
background and further perfect the skills which you have gained at the
Academy. At present, 3h Coast-Guard officers are studying in private in­
stitutions of higher learning.
The list of institutions is impressive. It
includes many of the leading schools of this country.
The Academy graduates who are studying in these institutions are investi­
gating a wide body of knowledge which extends from engineering and mathematics
to administration, finance and law. As I think of the contributions which
these officers will be able to make in the course of their later service,

633
h I cannot help but recall an important lesson of World War II. During those
critical! .years, it became increasingly apparent that our spectacular wartime
achievements in the field of science and technology were made possible by an
environment particularly favorable to the development of inventive and
productive genius. Our young people, more than in any other country in the
world, are encouraged to think for themselves. They are encouraged to try­
out new ideas, and to work with others in putting these ideas into practice.
This environment — so encouraging to1bold and rapid action — proved to be
one of our most precious wartime assets.
Recognizing this important truth, our Nation made every effort after
the close of World War II to give the young people who had been in the armed
services the widest possible opportunities for further study and education.
As graduates of the Coast Guard Academy, you too will have a wide choice of
opportunities for further intellectual advancement.
Let me urge you to take
every advantage of these opportunities; not only: from the point of view of
your own best interests and your own individual careers, but as an important
service which you as United States officers can render your country.
As you no doubt have learned during your period of attendance at the
Academy, successful leadership is an intangible thing, dependent only in
part on the acquirement of necessary techniques and procedures.
Successful leadership always has character as its basis; no other basis
meets the tests of time and experience.
Character is a prerequisite for
every officer who wants to advance in his profession.
In practice, successful leadership grows out of a man*s ability to
interest himself in the people with whom he is working; to take the time to
learn their problems, then to endeavor to see through their eyes the effects
of decisions he must make.
It is in this way only that true leadership can
be achieved, and that the mutual attainment.of a common goal can be realized
to the full.
Your success as officers will be dependent in the last analysis upon
the performance of your men.. There is no magic touchstone — there is no
body of knowledge — which can give you a guarantee of success in this area.
How to become a true leader is something which each of you must discover
individually,* in the course of the duties on which you are entering.
There are, of course, certain dependable guideposts. A leader must
have self-control. He should live up to his responsibilities. He should
never ask for an effort greater than he himself would be willing to put
forth. He must respect his fellowman as he would in turn wish to be respected.
Above all, he must be fair.
The attributes of leadership apply not only in the relationship between
an officer and the men in his command, but also in his contacts with the public.

634
•

5

-

I hope that the officers of the Coast Guard, in their concern for proficiency
in the service, never lose interest in the world around them.
The Coast
Guard performs a very broad service, and its full development requires breadth
of mind on the part of all Coast Guard personnel.
The greater the under­
standing you have of the events and the background of your times, both
historic and economic, the more significant will be your work.
I have referred to the present
American history, and mentioned the
present position in world affairs.
faith in the ability of our country

as one of the most critical times in
very heavy responsibilities of our nation*£
But I want you to know that I have full
to meet every difficulty and every threat*

Peace with freedom and justice is the ultimate goal of our defense progran
This goal can be attained if we couple courage and firm action with foresight
and self-restraint, basing our decisions on reason, not emotion.
We are building up our military forces in such a way as to make it plain
to all aggressors that it would be folly to attack us. And, at the same time
we are working to preserve our economic stability.
The strength of spirit that carried us through many another stormy time,
and enabled our country not only to survive but to forge constantly ahead,
remains the solid foundation of our hopes and our undertakings. I know
that the personnel of the Coast Guard, including today*s graduates of this
Academy, share in that strength of spirit, and will play their part with
distinction as we move toward the light of more tranquil days.
Let me assure you that I shall watch your careers with personal inter­
est. I have eveiy confidence that your record will be outstanding, and
that you will bring new honor to the Nation and to the Service of which you
are a part.

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2

Th e p a n e l d i s c u s s i o n wa s
Riefler,

Assistant

led by W i n f i e l d W.

to the C h a i r m a n of the B o a r d of

the F e d e r a l R e s e r v e System^ V e r n o n L.
D i r e c t o r of the U.

S.

Clark,

S a v i n g s B o n d s Division,

National
presided.

S e c r e t a r y S n y d e r t h a n k e d the c o n f e r e e s for. g i v i n g
the T r e a s u r y the b e n e f i t of their time and thought,
and f or the^Kexpressed r e a d i n e s s to a s sist

in e x p a n d i n g

the D e f e n s e B o n d Program.
A n e v e n i n g s e s s i o n of the c o n f e r e n c e w i l l include
a d d r e s s e s by E r i c Johnston,

A d m i n i s t r a t o r of the

E c o n o m i c S t a b i l i z a t i o n Agency,
Martin,

and W i l l i a m M c C h e s n e y

J r . , C h a i r m a n of the B o a r d of G o v e r n o r s of

the F e d e r a l R e s e r v e System.

IMMEDIATE RELEASE
T h u r s d a y , M a y 31,

S1951

A g r o u p of o u t s t a n d i n g Sa v i n g s B o n d s v o l u n t e e r s
r e p r e s e n t i n g all the States m et t o d a y w i t h S e c r e t a r y
S n y d e r and o f f i c i a l s of the T r e a s u r y ’s Sa v i n g s B o nds
D i v i s i o n to c o m p l e t e a n a t i o n - w i d e o r g a n i z a t i o n w h i c h
will specialize

in c o m m u n i t y S a v i n g s B o n d s activities.

The S e c r e t a r y ’s c o n s u l t a n t s w i l l serve as State
S a v i n g s B o n d s C h a i r m e n f o r C o m m u n i t y Activities.

Each

C h a i r m a n in t e n d s to f o r m i B e ^ V o l u n t e e r C o m m u n i t y
Activities Committee
to the T r e a s u r y

in his State for active a s s i s t a n c e

in this field.

A f t e r r e c e i v i n g the S e c r e t a r y ’s welcome,

the

C o m m u n i t y A c t i v i t i e s c o n f e r e e s h e a r d talks by several
G o v e r n m e n t o f f i c i a l s on the p r o g r e s s of the de f e n s e
program.

T h e s e s p e a k e r s included:

F r a n c i s H.

Russell,

D i r e c t o r of P u b l i c

A f f a i r s of the State D e p a r t m e n t ,

on " F o r e i g n

Policy/*
Brig.
Officer,

Gen.

A.

R o bert Ginsburgh,

D e p a r t m e n t of Defense,

Briefing

on "Mi l i t a r y

I m p l i c a t i o n s ."
E l m e r B.
of the Budget,

Staats,

Bureau

on "Our B u d g e t P o l i c y . "

E l m e r A. Nash,
Division,

A s s i s t a n t Director,

Director,

Public Liaison

N a t i o n a l P r o d u c t i o n Authority,

"Defense Production.**

on

A group of o u t s t a n d i n g Savings B o n d s v o l u n t e e r s r e p r e s e n t i n g a l l the States m e t t o d a y w i t h S e c r e t a r y S n y d e r a nd off i c i a l s
o f 'the T r e a s u r y ' s Savings B o n d s D i v i s i o n to compl e t e a na t i o n vide o r g a n i z a t i o n v h i c h w i l l spe c i a l i z e in c o m m u n i t y Savings
Bonds activities .
The S e c r e t a r y ' s cons u l t a n t s w i l l serve as State Savings
B o n d s C h a i r m e n for C o m m u n i t y A c t i v i t i e s . E a c h C h a i r m a n intends
to f o r m a v o l u n t e e r C o m m u n i t y A c t i v i t i e s C o m m i t t e e in h i s State
f o r , active a s s i s t a n c e to the T r e a s u r y in this field.
A f t e r r e c e i v i n g the S e c r e t a r y ' s welcome, the C o m m u n i t y
A c t i v i t i e s c o n f erees h e a r d talks b y s e v e r a l G o v e r n m e n t o f f icials
on the p r o g r e s s of the de f e n s e program.
These s p e akers included;
F r a n c i s H. Russell,
of the State Depa r t m e n t ,

D i r e c t o r of P u b l i c A f f a i r s
on " F o r e i g n Policy."

Brig. Gen. A. R o b e r t Ginsburgh, B r i e f i n g Officer,
D e p a r t m e n t of Defense, on " M i l i t a r y I m p l i c a t i o n s . "
E l m e r B. Staats, A s s i s t a n t D i r e c t o r , ' B u r e a u of
the Budget, on "Our B u d g e t Policy."
E l m e r A. Nash, Director, P u blic L i a i s o n D i v i sion,
N a t i o n a l P r o d u c t i o n Authority, on ''Defense Produ c t i o n . "
The p a n e l d i s c u s s i o n was led b y W i n f i e l d W. Riefler,
A s s i s t a n t to the C h a i r m a n of the B o a r d of the F e d e r a l R e s e r v e
System.
V e r n o n L. Clark, N a t i o n a l D i r e c t o r of the U. S. Savings
B o n d s Division, presided.
S e c r e t a r y S n y d e r t h a nked the conferees for g i v i n g the T r e a s u r y
the b e n e f i t of t h e i r time a nd thought, a nd for t h e i r e x p r e s s e d
r e a d i n e s s to a s s i s t in e x p a n d i n g the D e f e n s e B o n d Program.
A n e v e n i n g s e s s i o n of the con f e r e n c e w i l l i n c lude a d d r e s s e s
b y E r i c Johnston, A d m i n i s t r a t o r of the E c o n o m i c S t a b i l i z a t i o n
Agency, and W i l l i a m M c C h e s n e y Martin, Jr., C h a i r m a n o f the B o a r d
of G o v ernors of the F e d e r a l R e s e r v e System.

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