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AUGUST - SEPTEMBER 1951
Bill offering
August 2, 1951

S-2765

4

Snyder address. Savings Bonds, Statier Hotel
August 3, 1951
§-2766

37

Bill tenders
August 7, 1951

S-2767

44

Bill offering
August 9, 1951

S-2768

48

Presidents-secretaries, Banking associations,
meet with Secretary Snyder on Savings Bonds
August 8, 1951
S-2769 '

51

Narcotics year-end report
August 12, 1951

59

S-2770

Customs: Philippine commodities
August 9, 1951
S-2771

64

Customs: Quota commodities
August 9, 1951

S-2772

66

Customs: Wheat
August 9, 1951

S-2773

Customs: Cotton
August 9, 1951

S-2774

68
71

Snyder address. Payroll Chairmen, Washington, D C
August 10, 1951
S-2775

73

Bill tenders
August 14, 1951

S-2776

79

Debt Limitation
August 15, 1951

S-2777

Market Transactions
August 15, 1951

S-2778

Vermont income tax
August 13, 1951

S-2779

2H , 1951-53 Bond call
August 14, 1951

S-2780

81
84
86
89

154,000,000 Americans partners in Bond Drive
August 14, 1951
S-2781

94

Amendment of Foreign Assets Control (Formosa)
S-2782
August 15, 1951

97

AUGUST - SEPTEMBER 1951

pg 2

Labor leaders cooperate in opening of September 3
Savings Bonds Drive
August 17, 1951
S-2783

100

Bill offering
August 16, 1951

104
S-2784

Petroleum quota filled
August 17, 1951

S-2785

106

Snyder address. Municipal Dealers. St. Louis
August 20, 1951
S-2786

146

Bill tenders
August 21, 1951

152
S-2787

Snyder address. Old Country Ham Breakfast, Sedalia
August 22, 19&1
S-2788

189

Bill offering
August 23, 1951

197
S-2789

Snyder address. Alpha Tau Amego. Gettysburg:
ECONOMIC STAélLITY IS THE BEDftOCK OF DEFENSE
August 24, 1951
S-2790

235

Bill offering
August 28, 1951

245
S-2791

Bill tenders
August 28^1 1951

S-2792

247

Plea for return of small coins
August 29, 1951
S-2793

251

Truman-Snyder, Radio broadcast, opening of Drive
August 30, 1§51
S-2794-

255

Bill offering
September 1, 1951

258
S-2795

Defense Bond Drive to open on Labor Day
September 2, 1951
S-2796

263

1-7/8Í¡>, G-1952, exchange offering
September 4, Í951
S-2797

265

National bank assets
September 6, 1951

272
S-2798

Snyder address, Grand Rapids, opening Drive
September 3, Í951
S-2799

276

Snyder address, Alpha
September 3, 1951

331

Epsilon Pi, Cleveland
S-2800

AUGUST - SEPTEMBER 1951

pg 3|

Gustoms: Proposed revisions of drawbackregulations
September 4, 1951
S-2801

338

Bill offering
September 6,

343 |

1951

Fund-Bank delegation
September 7, 1951

S-2802

345
S-2803

Extension of time on Filing incomes
September 6, 1951
S-2804

349

Oedar Gity, Utah women oversubscribe donsquota
September 6, 1951
S-2805

351

Shyder address. Collectors Internal Revenue
September 8, 1951
S-2806

385

Snyder
September 7,

392

statement on Gaitskell visit
1951
S-2807

Statistics of Income, 1948, Part 2: Corporations
September 20, 1951
S-2808

393

Bill tenders
September 11,

407
1951

S-2809

Debt Limitation
September 11, 1951

S-2810

Bill offering
September 13, 1951

S-2811

409
412

Snyder statement, Marshall resignation
September 12, 1951
S-2812

414

Gustoms: Wheat
September 13,

416

1951

Customs: Quota commodities
September 13, 1951

S-2813
.
S-2814

418

Customs: Philippine comteodities
September 13, 1951
S-2815

420

Gustoms: Cotton
September 13, 1951

423
S-2816

Subscription figures on 1-7/8$, C-1952,certificates
September 14, 1951
S-2817
Market transactions
September 17, 1951

S-2818

Wilson, Savings Bonds
September 17, 1951

S-2819

425
428
431

AUGUST - SEPTEMBER 1951
Bill offering
September 18, 1951

S-2820

1-7/8$, D-1952, offering
September 18, 1951

S-2821

NAG report, March 31, 1951
September 18, 1951

S-2822

Bill offering
September 20, 1951

S-2823

Retail stores support Drive
September 23, 1951

S-2824

Snyder Ottawa statement
September 20, 1951

S-2825

Bill tenders
September 25, 1951

S-2826

Pg 4
435
436

444
448
451
453

Snyder address. Supervisors of State Banks, St. Louis
RESPONSIBILITY AND OPPORTUNITY
September 27, 1951
S-2827

495

Snyder address, Business-Professional Women, St. Louis
September 27, 1951
S-2828

552

Bill offering
September 27, 1951

S-2829

563

"Flag GityH program: cities
September 27, 1951

S-2830

568

Subscription figures on 1-7/8$ D-1952 offering
September 28, 1951
S-2831

572

1-7/8$, E-1952. offering
October 1,1951

573

Transactions in gold
September 28, 1§51

S-2832
„

577
S-2833

National bank earnings
September 28, 1951
oOo

581
S-2834

- 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 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. lj.18, as amended, and this notice, prescribe
the terms of the Treasury bills and govern the conditions of their issue.
of the circular may be obtained from any Federal Reserve Bank or Branch.

Copies

-

2

-

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 shall
be final.

Subject to these reservations, non-competitive tenders for '¿200,000

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

Settlement for

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

August

1951

3 in cash or other immediately avail-

able funds or in a like face amount of Treasury bills maturing
Cash and exchange tenders will receive equp.1 treatment.

August 9, 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

TREASURY_2EEART1®NT

^"^HaShington

/
/
v

FOR RELEASE, HORNING NEWSPAPERS,
Thursday, August 2, 1951_______•

The Secretary of the Treasury, by this public notice, invites tenders for
$ 1 300 QOQfQQQ , or thereabouts, of

91
" W
in exchange for Treasury bills maturing

-day Treasury bills, for cash and

23SL

, to be issued on

a discount basis under competitive and non-competitive bidding as hereinafter
provided.

The bills of this series will be dated

August ^

will mature

November 8. 1951 > when the face amount will be payable without
-------------- ^
... J '
They m i l be issued in bearer form only, and in denominations of

anc*

|

^

interest.

1951______ j

$1,000, $5,000, $10,000, $100,000, $

500,000, and

$1,000,000 (maturity value).

Tenders will be received at Federal Reserve Banks and Branches up to the
Daylight Saving
closing hour, two o ’clock p.m., Eastern jjk-BXKtsaadxtime, Monday, August 6» 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 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 Troasury bills applied for,

TREASURY

DEPARTMENT

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, 3 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 an d in e x c h a n g e for T r e a s u r y bill's m a t u r i n g A u g u s t
, 1951, *
to be issued ori^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
bidding as h e r e i n a f t e r provided.
The bills of this series w i l l be
dated A u g u s t
, 1951, a nd w i l l m a t u r e N o v e m b e r
, 1951, w h e n the face
amount w i l l . b e 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, a nd in d e n o m i n a t i o n s of $ ,
, $ ,
,
$
,
, $
,
, and $ ,
( m a t u r i t y value).

9

9

100 000

500 000

1 000,000

8
1 000

5 000 $10 000

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 D a y l i g h t S a v i n g
time, Monday, A u g u s t
, 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 rtment, 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 $ ,
-, a n d in the case of c o m p e t i t i v e tenders the price
ofiered m u s t be e x p r e s s e d on the b a sis of
, 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 be1
' m a d e on the p r i n t e d f o r m s an 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.

6

1 000

100

Others tha n b a n k i n g i n s t i t u t i o n s w ill no t be p e r m i t t e d to submit
tenders except for their o w n account.
T e n d e r s w i l l be 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 banks a n d trust c o m p anies an d from
responsible, and r e c o g n i z e d d e a lers in i n v e s t m e n t securities.
T e nders
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
u e r c e n t of the face
amount 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
accompanied b y an e x p r e s s g u a r a n t y .of p a y m e n t b y a n i n c o r p o r a t e d b a n k
or trust company.
•
/

2

in a
l a t e l y a f t e r the c l o s i n g hour, tenders will, be o p e n e d at the
e eral 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 a n n o u n c e ­
ment will be m a d e - b y the S e c r e t a r y of the T r e a s u r y of the a m o u n t and
Pi-ice range of a c c e p t e d bids . Those s u b m i t t i n g 'tenders w i l l be
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
lii ^re supy 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 r e j e c t a n y or
in
or in p a r t , ‘a nd his a c t i o n in a n y such r e s p e c t
^ ^
i’i m a l . Su b j e c t to. these reser v a t i o n s , non-comnetitj.ve
enders for $
or less w i t h o u t s t ated p r i c e f r o m a n y one
o-aaer 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 three

5

200,000

2
d e c i mals) of a c c e p t e d c o m p e t i t i v e b i d s . S e t t l e m e n t for a c c e p t e d
t enders in a c c o r d a n c e w i t h the b i d s m m t b e m a d e or c o m p l e t e d at
the F e d e r a l R e s e r v e B a n k o n A u g u s t 9, 1931, i n 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
bills m a t u r i n g A u g u s t 9, 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.
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 ar 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 a n d the issue price 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
g a i n f r o m the sale or o t her d i s p o s i t i o n of the hills, shall n o t have
a n y e xemption, 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 h i lls s h a l l n o t h a v e a n y s p e cial treatment, as such,
u n d e r the I n t e r n a l R e v e n u e Code, or laws a m e n d a t o r y or s u p p l e m e n t a r y
thereto.
The bills s h all be s u bject 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, but shall be exempt
f r o m 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 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 ority.
F or 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 which. 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 shall be c o n s i d e r e d t o be
interest.
U n d e r Sections 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 b i l l s i s s u e d h e r e u n d e r are sold shall
n ot he c o n s i d e r e d to a c c r u e u n t i l .such b i lls shall be sold,
P c[ €ra, cL or o t h e r w i s e d i s p o s e d of, a n d such b i l l s are e x c l u d e d from
c o n s i d e r a t i o n as c a p 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 h a n life i n s u r a n c e c o m p a n i e s ) i s s u e d h e r e u n d e r n eed
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 ice p a i d for s u c h hills, w h e t h e r o n 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 , 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 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.

00 0

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, 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 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 a n y F e d e r a l R e s e r v e S a n k o>r_ Brancfcu

oOo

to our Nation in mobilïz Ï

drive for peace, progress
prosperi
of good-w iI

ourselves and for
V

around

of man.

For in the final analysis,

the power of America is the power
of its people worKing together
Ip
» .Ijj

in

common cause.
No finer example of living
democracy can

be found than in

our defense bond program.
<

.

It is

conducted for the people by the
people of the United States and
gives every Amer ican the opportun ity
to share directly in strengthening
the economic power of our Nat ion.

I

8'

their natio

is

this spirit

in

t Americans

succeed in £
Dynamic force of Amer
it is this same spirit,
dynamic force
necessary now
continue to b

ch is so
our Nation is
wer fui bulwark

inst dictatorial aggressors
eht in

now

t o des

human

ir rt and

a

le dignity

-

Oi

26

That ¡s, of course, the
message -- the purpose -- of the
nationwide defense bond drive
which we are opening in September,
and which you as key men in this
great drive will be spearheading
The symbol of this drive, as
you know,

is to be our national

emblem -- the great American Eagle,
standing on guard, ever vigilant,
ana ever strong.

Behind this drive

efforts -- will be available

and with an abundant supply of
enthus iasm.
We need to reach into every
home and every community
throughout our Iana and bring
to every American the personal
is
that now
is not the time to relax our
efforts.
I

Sí

24
of Payroll Savings Plan activity
among its employers.
The advertising industry is
giving to the Defense Bond Drive
support fully comparable to that
which it provided so generously

'll

ana effectively in years gone by
Preliminary reports to us indicate
that volunteer salesmen

those

public-spirited people who through
personal solicitations really spell
the success of all our bond-sell

El

9 *

.

, a slogan » Ith truth in

It.

A

single sale of a $25 bond becomes
potent

Indeed as a thrift

Influence

*hen a thousand or ten t h o u s a n d
v o l u n t e e r s are c l o s i n g as many more
1

$25 bond sales s i m u 1t a n e o u s 1y.
Sms II

1

Inve stars h a v e stenned uo

the number of 1$ 25 and $50 £ Bonds they
have p u r c h é sed this year by better
than

11 percent .

City after city

aor o ss the coun try has u n d o r t e K e n
succ essfully

g Tre«

in recent mont h s to
Ia g for e x p t os Ion

¿tes

in e c o nomîc
in the

hi story

incomes of the m i ddle g r o u p

This g r o w t h has greatly e n l a r g e d
the m a r k e t for the p r o d u c t s of
American a g r i c u l t u r e and

industry

also,

the

p o s s i b i l i t i e s for p r o f i t a b l e
b u s i n e s s operations.

I

individuals,

collectively,

after the payment of t a x e s , still
/
have in their hands large sums
to spend

or to save.

The wise

81

IB for p s y - s s - *•

taxation,

laid

before c o m m i t t e e s of the C o n g r e s s
in recent weexs,

ere not •modified

in any r e s p e c t by our
e f f o r t s to

intended

increase the sale of

bonds s u b s t a n t i a l l y during the fall.
The tax p r o g r a m and the bond p r o g r a m
are both essential

to the economic

w e l f a r e of the c o u n t r y
I

go

not at

Is time w a n t to

into any detai l e d a n a l y s i s of

our r e v e n u e and e x p e n d i t u r e p r o s p e c t s

ei

17
however,

that with regard to the

G o v e r n m e n t ' s fiscal

affairs

I am

c o m p l a c e n t about the future.
I want to e m p h a s i z e that
our plans for a D e f e n s e Bond
drive do not s i g n i f y any d e p a r t u r e
from the

Treasury's stand

in

favor of pay ing-as-we-go for
d e f e n s e as well as for the
ordinary costs of government.
r e e o m m e n d a t i ons of the

Treasury

The

nm$.

os

was r e d u c e d $15 hi iI ion. and
c o m m e r c ja I ban* hold} ngs of
G o v e r n m e n t s e c u r i t i e s ».-ere r e d u c e d
by mor e
'That

$25 biI I Jon
is not d e f i c i t financing,

it is just the contrary.

In the

f a c e of t h o s e facts we m u s t

i ook

In other d i r e c t i o n s than G o v e r n m e n t
fiscal

do

I Icy to find

inflation’s

r e c e n t causes.
I do not want you to thintc.

This attitude simply d i s r e g a r d s
the facts.
For the five fiscal
which e n d e d

years

last June 30

the

U n i t e d States had a net over-ail
s u r p l u s of r e c e i p t s over e x p e n d i t u r e s
of a p p r o x i m a t e l y

$7.5 billion.

D u r i n g the same five years,
debt of the U n i t e d States

the

- 14 %

'MI
.■/

services,

:t

and

of c u r b i n g

lessen the d i f f i c u l t y

inflation.

At this point,

I
;|

I should

like

I

to c o m m e n t briefly upon an

idea

I

about

I am

I

inflation w ith w h i c h

sure many of you have been confronted. I
That

is the

the price

idea that the rise

level

in

I

w h i c h we have

e x p e r i e n c e d since the end of Aor Id

I

War

I

II has been due

in large part

to m e t h o d s of G o v e r n m en t f i n a n c i n g --

I

that d e f i c i t

I

f i n ancing

in the postwar

Uur m o b i l i z a t i o n p r o g r a m will
require a substantial

portion of

our a v a i l a b l e m a n p o w e r and material
C o n s e q u e n t Iy, there will
const

be a

gap between the

spendable

income of

individuals

goods a v a i l a b le for them

aHu

to buy
by putting our e a r n i n g s
personal

savings r a t h e r than

the c o m m o d i t y markets,

into
into

we help ho Id

down the prices of scarce goods and

to a
d u r i n g the past
%8F

ng-up period

*

in ouh

d e f e n s e effort.

our economic history

s continued
!_ f

L

i h r Jft
an Amer

a result.
b a c k l o g of

ill!on

in I

sa
form of U n i t e d

sav m g s

deposiis,

s a v i n g s a c c o u n t s a n d other
s a v ings
r e s e r v o i r has p r o v i d e d
ican pub 1 1 c
supp l y of purcha

'V

6

r

sources of our p r o d u c t iv e

power

cu®u.l at Ive s a v i n g s of

A m e r icans hive created capital

to

finance over the years]a great
supply of p r o d u c t i v e f a c i l i t i e s
These f a c i l i t i e s have turned the
p r o d u c t s of our farms,
ana our f o r e s t s

our m ines

into the m a t e r i a l s

ana e q u i p m e nt which have made
p o s s i b l e a c o n s t a n t l y risi n g standard
of

11ving.
It is an e n c o u r a g i n g aspect of

-

9

we see this power,
spiritual,

-

material

and

growing day by day.

If we but r e s o l u t e l y refuse to
be d i v e r t e d from the courses of
p r e p a r e d n e s s on which we so wisely
embarked,

we may have , e v er y hope

that no hosti le power wi I I dare
to try to overcome us.
I spoke of the power of our
financial
individual

strength.

Thrift,

and c o l l e ctive,

source of that strength.

is a
American

thrift has always been one of the

if
■V&'l
m

Q

W 3'' s ä r -

v
*

«

a

great deal

of progr e s s has

already been m a d e toward that
m o b i l i z a t i o n of our power.

Other

free n a t i o n s are s t e a d i l y g a i n i n
X

s t r e n g t h w i t h us.

The plans for

common a c t i o n by the free n a t i o n s
on w h i c h

have worked so

so e a r n e s t Iy, and
great an

long and

in w h i c h so

investment of our economic

r e s o u r c e s has been made,

are

s t e a d i l y a c h i e v i n g the goals which
we had
1

in mind.

Power

power

for peace -- power for p r o t e c t io n

these r u l e r s may dec Ide that peace
Is better for the

06

b

Complacency,
the

relaxation,

lowering of our guard,

the

idea that by stopp i n g the Korean
a g g r e s s i o n we have d e f i n i t e l y
c h e c k - m a t e d the Soviet d i c t a t o r s h i p ’s
a m b i t i o ns -- any of these
a t t i t u d e s could be e x tremely costly
to us and to the free n a t i o n s w i t n

■ is

w h i c h we are till
hat we have to do

is m o b i l i z e

not only our m a n p o w e r but also all
the power of our p r o d u c t i v e skills.

Bra

shooting

in K o r e a , the C o m m u n ist

threat to the free n a t i o n s remains.
The a g g r e s s io n 1 n Korea was
p r e c e d e d by a chain of other
incidents w h i c h gave w a r n i n g of
the K r e m l i n ’s intentions to d o m i n a t e
the world.
such

An assumpti n that

incidents will

cease-fire

end

is a c h i e v e d

d i s r e g a r d the plain,
d e r i v e d f rom alI

if a
in Korea would

e x p e n s i ve

iesson

that has t r a n s p i re d

in the postwar years.

conduct of
a project which gives every American
the o p p o r t u n i t y to share

in

s t r e n g t h e n i n g the power of our Nation

<S>

The s t r e n g t h of this Nation

has become the

inspiration for the
of

I

the world.

Today that s t r e n g t h

is

being c h a l l e n g e d by the c o n t i n u i n g
threat of communism.

D e s p i t e the

for s t i m u l a t i o n
of our
front-It ne

operations
c a u s e to share the

T r e a s u r y ’s aporec 1st Ion of the
in which you have

have p Ieyed so

2
which h a s ' p r o v i d e d a great r e s e r v o i r
of power for
national

individual

as well

as

economic security.

The success of the savings bond
p r o g r a m has been due

in large

m e a s u r e to your u n t i r i n g efforts
p r o m o t i n g the p r o g r a m

in

in your states

and c o m m u n i t i e s -- not only when a
drive has been under way but also

pii

In the m o r e r o u t i n e bond-selling
a c t i v i t i e s of the m o n t h s between
drives.

It

is to you that we have

It is a real pleasure for
to again welcome you to the counci
table of our savings bonds family.
Our family is a fairly young one in
the sense that the great program in
which we are engaged was inaugurated
but a comparatively few years ago.
Yet within just the past decade, our
savings bonds program has become a
vital American institution.

It has

become an inspiration for millions
who have learned the value of thrift
through this program -- that thrift

The following address by Secretary Snyder before a
conference of State Chairmen and State Directors of
the United States Savings Bonds Program in the
Statler Hotel, Washington, D. C., is scheduled for
delivery at 8:30 p.m., EDTt Friday, August 3, 1951,
and is for release at that time.

37
TREASURY DEPARTMENT
Washington

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
before a c o n f e r e n c e of State C h a i r m e n and
State D i r e c t o r s of the U n i t e d States
S a v i n g s B o n d s P r o g r a m in the S t a t l e r Hotel,
W a s h i n g t o n , D. C., is s c h e d u l e d for
d e l i v e r y at 8 : 3 0 p.m., EDT, F r i d a y ,
A u g u s t 3, 1 9 5 1 j and is f or r e l e a s e at that
time.

It is a real p l e a s u r e f or me to a g a i n w e l c o m e y o u to
the c o u ncil table of our s a vings b o nds family.
Our family
is a f a i r l y y o u n g one in the sense that the g r e a t p r o g r a m
in w h i c h we are e n g a g e d was i n a u g u r a t e d but a c o m p a r a t i v e l y
f e w y e a r s ago.
Y e t w i t h i n just the p a s t decade, our
savings bonds p r o g r a m h as b e come a vital A m e r i c a n i n s t i t u t i o n
It h a s become a n i n s p i r a t i o n for m i l l i o n s w ho have l e a r n e d
the value of t h r i f t t h r o u g h this p r o g r a m -- that thrift
w h i c h h a s p r o v i d e d a g r e a t r e s e r v o i r of p o w e r for i n d i v i d u a l
as well as n a t i o n a l e c o n o m i c security.
The s u c cess of the savings b o n d s p r o g r a m has b e e n due
in large m e a s u r e to y o u r u n t i r i n g e f f o r t s in p r o m o t i n g the
p r o g r a m in y o u r states a n d c o m m u n i t i e s —
not o n l y w h e n a
drive has b e e n u n d e r w a y but a lso in the m o r e r o u t i n e
b o n d - s e l l i n g a c t i v i t i e s of the m o n t h s b e t w e e n drives.
It
is to y o u that we have l o o k e d for guidance, f or s t imulation,
and for a l l - r o u n d m a n a g e m e n t of our f r o n t - l i n e s a v i n g s bonds
operations.
The N a t i o n has cause to share the T r e a s u r y ’s a p p r e c i a ­
tion of the o u t s t a n d i n g m a n n e r in w h i c h y o u h ave a c c e p t e d
and f u l f i l l e d y o u r r e s p o n s i b i l i t i e s .
Y o u c a n take t r e m e n d o u s
pride in the fac t that y o u h ave m a d e suc h a s i g n i f i c a n t
c o n t r i b u t i o n to the g r e a t e s t o r g a n i z e d t h r i f t p r o g r a m in
all h i s t o r y —
t hat y o u h a v e p l a y e d so i m p o r t a n t a role in
the c o n d u c t of a p r o j e c t w h i c h gives e v e r y A m e r i c a n the
o p p o r t u n i t y to share in s t r e n g t h e n i n g the p o w e r of our N a t i o n

S

-2766

2

38

The s t r e n g t h of* this N a t i o n h as b e c o m e the i n s p i r a t i o n
f or the h o pes of all the free p e o p l e s of the world.
Today
that s t r e n g t h is b e i n g c h a l l e n g e d by the c o n t i n u i n g threat
of communism.
D e s p i t e the signs of a p o s s i b l e end to the
s h o o t i n g in Korea, the* C o m m u n i s t threat to the free n a t i o n s
remains.
The a g g r e s s i o n in K o r e a w as p r e c e d e d by a c h a i n
of other i n c i d e n t s w h i c h gave w a r n i n g of the K r e m l i n l s
i n t e n t i o n s to d o m i n a t e the world.
A n a s s u m p t i o n that such
i n c i dents will e nd if a c e a s e - f i r e is a c h i e v e d in K o r e a
w o u l d d i s r e g a r d the plain, e x p e n s i v e l e s s o n d e r i v e d f r o m
all that has t r a n s p i r e d in the p o s t w a r years.
C o m p l a c e n c y , r e l a x a t i o n , the l o w e r i n g of our guard,
the idea that b y s t o p p i n g the K o r e a n a g g r e s s i o n we have
d e f i n i t e l y c h e c k - m a t e d the S o v i e t d i c t a t o r s h i p * s a m b i t i o n s
a ny of these a t t i t u d e s c o u l d be e x t r e m e l y c o s t l y to us
and to the free n a t i o n s w i t h w h i c h we are allied.

--

W h a t we hav e to do is m o b i l i z e not o n l y our m a n p o w e r
but a lso all the p o w e r of our p r o d u c t i v e skills, of our
f a c t o r i e s and m a t e r i a l s , of our f i n a n c i a l strength, and
of our f a i t h in h u m a n l i b e r t y as o b j e c t l e s s o n s f or the
Soviet rulers.
Once t h e y see that p o w e r c o m p l e t e l y
o r g a n i z e d and a c t i vated, these r u l e r s m a y d e c i d e that p e ace
is b e t t e r for the w o r l d a f t e r all.
A g r e a t deal of p r o g r e s s has a l r e a d y b e e n m a d e t o w a r d
that m o b i l i z a t i o n of our power.
O t h e r free n a t i o n s are
s t e a d i l y g a i n i n g s t r e n g t h w i t h us.
The p l a n s for c o m m o n
a c t i o n b y the free n a t i o n s on w h i c h we h a v e w o r k e d so long
and so e a r n estly, an d in w h i c h so g r e a t a n i n v e s t m e n t of
our e c o n o m i c r e s o u r c e s h a s b e e n made* are s t e a d i l y a c h i e v i n g
the g o als w h i c h we h a d in mind.
P o w e r — p o w e r fo r p e a c e -p o wer for p r o t e c t i o n —
we see this power, m a t e r i a l and
spiritual, g r o w i n g d a y by day.
If we but r e s o l u t e l y r e fuse
to be d i v e r t e d f r o m the c o u r s e s of p r e p a r e d n e s s on w h i c h
we so w i s e l y embarked, we m a y hav e e v e r y hope that n o
h o s tile p o w e r will dare to t r y to o v e r c o m e us.
I
spoke of the p o w e r of our f i n a n c i a l strength.
individual and coll e c t i v e , is a source of that strength.
A m e r i c a n thrift has a l w a y s b e e n one of the g r eat sources
of our p r o d u c t i v e power.
The c u m u l a t i v e sa v i n g s of
A m e r i c a n s h a v e c r e a t e d c a p i t a l to f i n a n c e o ver the y e a r s

Thrift,

- 3 -

39

a g r eat s u p p l y of p r o d u c t i v e f a c i l i t i e s .
These facilities
have t u r n e d the p r o d u c t s of our farms, o u r m i n e s and our
f o r e s t s into the m a t e r i a l s and e q u i p m e n t w h i c h have made
p o s s i b l e a c o n s t a n t l y r i s i n g s t a n d a r d of living.
It is a n e n c o u r a g i n g a s p e c t of our e c o n o m i c h i s t o r y
that thrift has c o n t i n u e d to be an A m e r i c a n habit.
As a
result, A m e r i c a n s a c c u m u l a t e d a p o s t w a r b a c k l o g of $200
b i l l i o n in l i q u i d savings.
T h e s e s a vings are in the f o r m
of U n i t e d Stat e s s a v ings bonds, b a n k deposits, savings
a c c o u n t s a n d o t h e r f o r m s of l i q u i d assets.
The g r eat
savings r e s e r v o i r h a s p r o v i d e d the A m e r i c a n p u b l i c w i t h
a t r e m e n d o u s s u p p l y of p u r c h a s i n g power.
This r e s e r v e
purchasing power helped avert a postwar business recession
in 19^9«
It h e l p e d b u i l d up the A m e r i c a n s t a n d a r d of l i v i n g
to a n e w a l l - t i m e h i g h d u r i n g the p a s t several years.
Today, as we are n e a r i n g the p e a k of the t o o l i n g - u p
p e r i o d in our a l l - o u t n a t i o n a l d e f e n s e effort, the p r a c t i c e
of t h rift t a kes o n e v e n g r e a t e r i mportance.
Our m o b i l i z a t i o n p r o g r a m will r e q u i r e a s u b s t a n t i a l
p o r t i o n of our a v a i l a b l e m a n p o w e r and m a t e r i a l s .
Consequently,
there w ill be a c o n s i d e r a b l e g ap b e t w e e n the s p e n d a b l e
income of i n d i v i d u a l s a n d the g o ods a v a i l a b l e for t h e m to buy.
B y p u t t i n g our e a r n i n g s into p e r s o n a l s a vings r a t h e r
than into the c o m m o d i t y m a r k e t s , we h e l p h o l d d o w n the
p r i c e s of scarce g o ods a nd services, and l e s s e n the d i f f i c u l t y
of c u r b i n g inflation.
At this point, I s h o u l d ' l i k e to c o m m e n t b r i e f l y u p o n
an idea a b out i n f l a t i o n w i t h w h i c h I a m sure m a n y of y o u
have b e e n c o n f ronted.
T h a t is the idea that the rise in
the price level w h i c h we have e x p e r i e n c e d since the e n d of
W o rld W ar II h a s b e e n due in large p a r t to m e t h o d s of
G o v e r n m e n t f i n a n c i n g -- that d e f i c i t f i n a n c i n g in the p o s t w a r
p e r i o d h as b e e n the c a use of m o s t of the i n f l a t i o n evils.
This a t t i t u d e s i m p l y d i s r e g a r d s the facts.
F o r the five fisc a l y e a r s w h i c h e n d e d last June 30,
the U n i t e d S t a t e s h a d a n et o v e r - a l l s u r p l u s of r e c e i p t s
over e x p e n d i t u r e s of a p p r o x i m a t e l y $7-5 billion.
During
the same five years, the deb t of the U n i t e d S t a t e s was
r e d u c e d $13 billion, and c o m m e r c i a l b a n k h o l d i n g s of
G o v e r n m e n t s e c u r i t i e s were r e d u c e d b y m o r e t h a n $25 billion.

4

Tha t is not d e f i c i t financing.
It is just the
contrary.
In the face of those f a cts we m u s t loo k in
o t her d i r e c t i o n s tha n G o v e r n m e n t fisc a l p o l i c y to find
i n f l a t i o n ’s r e c e n t causes.
I
do not want y o u to think, however, that w i t h r e g a r d
to the G o v e r n m e n t ’s f i s c a l a f f a i r s I am c o m p l a c e n t a b out
the f u t u r e .
I
want to e m p h a s i z e that our p l a n s f or a D e f e n s e
B o n d drive do not s i g n i f y a n y d e p a r t u r e f r o m the T r e a s u r y ’s
stand in f a v o r of p a y i n g - a s - w e - g o for d e fense as w e l l as
for the o r d i n a r y c o s t s of g o v e r n m e n t .
The r e c o m m e n d a t i o n s
of the T r e a s u r y fo r p a y - a s - w e - g o taxation, l a i d b e f o r e
c o m m i t t e e s of the C o n g r e s s in r e c e n t weeks, are not m o d i f i e d
in a n y r e s p e c t b y o u r i n t e n d e d e f f o r t s to i n c rease the sale
of b o nds s u b s t a n t i a l l y d u r i n g the fall.
The tax p r o g r a m
and the b o n d p r o g r a m are b o t h e s s e n t i a l to the ec o n o m i c
welfare of the country.
I do n ot at this time w a n t to go into a n y d e t a i l e d
an a l y s i s of o ur r e v e n u e and e x p e n d i t u r e p r o s p e c t s , but I
do w ant to p o i n t out that the p e n d i n g tax p r o g r a m is not
o n l y n e c e ssary, but c a n be a b s o r b e d by our e c o n o m y and
leave, a f t e r taxes, a g o o d m a r g i n of p r o f i t s a nd incentives.
We are all aware, of course, that p r i c e s h ave r i s e n
g r e a t l y since 1939*
B u t incomes a f t e r taxes have m o v e d
a h ead e v e n faster.
The t r u l y s i g n i f i c a n t fac t —
an d one
to w h i c h little a t t e n t i o n has b e e n g i v e n —
is that the
average pe r c a p i t a income in the U n i t e d Stat e s today,
after all taxes, local, State, and Federal, w ill b u y a l m o s t
40 p e r c e n t m o r e in a c t u a l g o ods an d se r v i c e s tha n the
average p e r c a p i t a income in 1939*
M o r e over, p e o p l e t o d a y c a n bu y things w h i c h in e a r l i e r
years were e i t h e r not a v a i l a b l e at all, or were a v a i l a b l e
only to a l i m i t e d number.
There h as b e e n a g r o w t h u n p r e ­
ce d e n t e d in e c o n o m i c h i s t o r y in the incomes of the m i d d l e
group.
T his g r o w t h has g r e a t l y e n l a r g e d the m a r k e t fo r
the p r o d u c t s of A m e r i c a n a g r i c u l t u r e and i n d u s t r y —
and
g r e a t l y enlarged, also, the p o s s i b i l i t i e s f o r p r o f i t a b l e
b u s iness o perations.

41
- 5 -

Individuals, co l l e c t i v e l y , a f t e r the p a y m e n t of
taxes, still have in t h eir h a n d s large sums to s p end or
to save.
The wise course is to c o n f i n e o u r s e l v e s to
n o n i n f l a t i o n a r y s p e n d i n g a nd to save r e g u l a r l y out of
our incomes.
The de f e n s e bond p r o g r a m is an e s s e n t i a l i n g r e d i e n t
of our home front defense.
A s l o g a n w h i c h has b een
sug g e s t e d for the D e f e n s e B o n d D r ive is MBo nds for P o wer
for Peace.
T h ese five words sum up the su b s t a n c e an d
the spirit of the appeal w h i c h we are m a k i n g w i t h all
e a r n e s t n e s s a nd all vigor.
It is a s l o g a n w i t h t r u t h in
it.
A single sale of a
-bond b e c omes p o t e n t inde e d
as a thri f t inf l u e n c e w h e n a t h o u s a n d or t en t h o u s a n d
v o l u n t e e r s are c l o s i n g as rr&ny mor e
bon d sales
simultaneously.

$25

$25

$25

Small i n v e s t o r s hav e s t e p p e d up the n u m b e r of
and
E B o n d s t h e y have p u r c h a s e d this y e a r by b e t t e r
t han 11 percent.
C i t y a f t e r c i t y a c r o s s the c o u n t r y has
u n d e r t a k e n s u c c e s s f u l l y in r e c e n t m o n t h s to w i n a T r e a s u r y
F l a g for e x p a n s i o n of Pa y r o l l S a v i n g s P l a n a c t i v i t y a m o n g
its employers.

$50

The a d v e r t i s i n g i n d u s t r y is g i v i n g to the D e f e n s e B o n d
Drive s u pport f u l l y c o m p a r a b l e to that w h i c h it p r o v i d e d
so g e n e r o u s l y and e f f e c t i v e l y in y e a r s gone by.
Preliminary
reports to us indicate that v o l u n t e e r s a l e s m e n —
those
p u b l i c - s p i r i t e d p e o p l e who t h r o u g h p e r s o n a l s o l i c i t a t i o n s
r e a l l y spell the success of all our b o n d - s e l l i n g e f f o r t s —
will be a v a i l a b l e this fall in c r e d i t a b l e numbers, and w i t h
an a b u n d a n t s u p p l y of e n t h usiasm.
We n e e d to r e a c h into e v e r y home and e v e r y c o m m u n i t y
t h r o u g h o u t our land and b r i n g to e v e r y A m e r i c a n the p e r s o n a l
r e a l i z a t i o n that d e f e n s e is e v e r y b o d y ’s job -- and that
n o w is not the time to r e l a x our de f e n s e efforts.
That is, of course, the m e s s a g e -- the p u r p o s e —
of
the n a t i o n w i d e d e fense bond drive w h i c h we are o p e n i n g in
September, and w h i c h y o u as k e y m e n in this g r e a t drive
will be spearheading.

42
-

6

-

Tne symbol of this drive, as y o u know, is to be our
n a t i o n a l e m b l e m -- the g r e a t A m e r i c a n Eagle, s t a n d i n g on
guard, e v e r vigilant, and e v e r strong.
B e h i n d this drive
s h o u l d be p ut e v e r y o u nce of the p o w e r of e v e r y g o o d
c i t i z e n as a v o l u n t e e r w o r k e r a nd a v o l u n t a r y saver fo r
the d e f e n s e of A m e r i c a an d for the f u t u r e of America.
Ou r N a t i o n has b e c o m e the p o w e r f u l N a t i o n it is
be c a u s e we hav e r e c o g n i z e d that a n a t i o n c a n be s t rong
and free o n l y w h e n its i n d i v i d u a l c i t i z e n s are fre e -free to w o r k t o g e t h e r in c o o p e r a t i v e e f f o r t to p r e s e r v e
b o t h their p e r s o n a l l i b e r t i e s a n d t h e i r n a t i o n a l freedom.
It is in this spirit that A m e r i c a n s of s u c c e e d i n g g e n e r a t i o n s
have b u i l t the dy n a m i c f o r ce of A m e r i c a n d e m o c r a c y .
It is
this same spirit, this same d y n a m i c force, w h i c h is so
n e c e s s a r y n o w if our N a t i o n is to c o n t i n u e to.be a p o w e r f u l
bulwark against dictatorial aggressors who seek now —
as
they s o ught in the p a s t —
to d e s t r o y the l i b e r t y of the
h u m a n spirit an d the d i g n i t y of man.
F o r in the final
analysis, the p o w e r of A m e r i c a is the p o w e r of its p e o p l e
w o r k i n g t o g e t h e r in c o m m o n c a u s e .
No f i n e r e x a m p l e of l i v i n g d e m o c r a c y c a n be f o u n d
than in our d e f e n s e b o n d p r o gram.
It is c o n d u c t e d f or the
people b y the p e o p l e of the U n i t e d S t a t e s a n d g i v e s e v e r y
A m e r i c a n the o p p o r t u n i t y to share d i r e c t l y in s t r e n g t h e n i n g
the ec o n o m i c p o w e r of our Nation.
A n d it is u p o n this
c o n s t r u c t i v e p o w e r that the p e a c e of the w o r l d depends.
As y o u go out to o r g a n i z e y o u r state a nd c o m m u n i t y
a c t i v i t i e s to a s s u r e the s u c c e s s of the c o m i n g de f e n s e
bond drive, I s h o u l d like to a s k y o u to c a r r y to y o u r
local w o r k e r s m y sincere t h a n k s for the d e t e r m i n e d spirit
in w h i c h t h e y are s h o u l d e r i n g r e s p o n s i b i l i t y in this g r eat
defense effort.
They, and you, are r e n d e r i n g a g r e a t
service to ou r N a t i o n in m o b i l i z i n g the p o w e r of thrift
behind our n a t i o n a l drive f o r peace, p r o g r e s s and p r o s p e r i t y ,
for o u r s e l v e s a n d f or m e n of g o o d will the w o r l d around.

0O 0

É»
m ium , mmim wmmpwts,

■%äsSS#”

n
n
« /

August 7*

The Secretary of the Treasury announced last evening that the tenders for
$1,300,000,000, or thereabouts, of 91~day Treasury M i l s to be dated August 9 and to
stature November 8, 1951, which sere offered on August 2, sere opened at the Federal E*
serre Banks on August 6 *
The details of this issue are as follows t
Total applied for
Total accepted

$1,890,936,000
1,300,336,000

Average Price

99*583

(includes till, U*3#000 entered cm a
iKm-ecaapetitt?« basis and accepted in
full at the average price sheen below)
Equivalent rate of discount approx* 1*652$ per annus

Hange of accepted competitive bides

99*637

High

-

lee

- 99*St9

Equivalent rate

«

*

of discount

*

«

approx*

«

1*1*36$ per annum

1.665$ *

(10 percent of the amount bid for at the Ice price was accepted)

Federal Besarve
District

Total
Applied for

Total

Boston

$

I

mm ïïmk
Hiiladelpiiia
Cleveland
Richiaond
Atlanta
Chicago
St* Louis

lli,666,000
1,376,109,000
39,931*,O00
til,913,000
13.930.000
22.203.000

mu

J

,000

.

22 203.000

179,361t.,®X>

161 »,861»,0 0 0

20,165,000
,
33.919.000
59.828.000

19.715.000

6 591,000

Kansas City
Balias
San Francisco

lii,666,000
810,909,000
29,931»,0»
U3,913
13.530.000

$1,890,936,000

6 ,591,000
33,»9,000
59.828.000
75 «261»,000
11,300,336,000

»

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 , 3 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
tills to be d a t e d A u g u s t 9 a nd to m a t u r e N o v e m b e r 8, 19|1> w h i c h
were o f f e r e d on A u g u s t 2, w ere o p e n e d at the F e d e r a l R e s e r v e Banks
on August 6.
The d e t a i l s

of this issue are as follows:

T o tal a p p l i e d for - $ 1 , 8 9 0 * 9 3 6 , 0 0 0
Total a c c e p t e d
1*300,336,000

A v e rage price

(includes $ 1 4 4 , 1 4 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 a n d a c c e p t e d in full
at the a v e r a g e p r ice s h own
below)
- 9 9 . 5 8 3 E q u i v a l e n t rate of d i s c o u n t approx.
,
$ per aimum

1 652

Range of a c c e p t e d

competitive bids:

Hig h

- 99.637 Equivalent rate
1.436$
- 99*579 E q u i v a l e n t race
1 .665$

Low

of discount approx.
per annum
of discount approx.
per annum

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

Boston
Hew York
P h ilad elp h ia
Cleveland
Richmond
Atlanta
Chicago
St. L ou is
Minneapolis
Kansas C ity
Dallas
Ban F r a n c is c o

T o ta l
A c c e p te d

T o ta l
A p p lie d f o r

Federal R e s e r v e
D istric t
$

14,666,000
1,376,109,000
39,934,000
,
,
,
179,364,000
20,165,000
,
33,919,000
59,828,000
75,264,000

$

14,666,000

810,909,000
29,934,000

43,913,000
18,530,000
22, 203,000

43 913,000
18 980,000
22 203,000

164,864,000
10,715,000
,
33,919,000
59,828,000
,

6 591,000

6 501,000

TOTAL

$1,890,936,000

0O0

75 264,000

1 300,336,000

$ ,

- 3 -

jmwr
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 llj? 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• Copies
of the circular may be obtained from any Federal Reserve Bank or Branch.

-

2

-

unless the tenders are accompanied by an express guaranty of payment by an in­
corporated bank or trust company.
Immediately after the closing hour, tenders will be opened at the Federal
Reserve Banks and Branches, following which public announcement will be made by
the Secretary of the Treasury of the amount and price range of accepted bids.
Those submitting tenders will be advised of the acceptance or rejection thereof.
The Secretary of the Treasury expressly reserves the right to accept or reject
any or all tenders, in whole or in part, and his action in any such respect sha'
be final.

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

or less without stated price from any one bidder will be accepted in full at tb
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

Ancms-k

iqcft

, in cash or other immediately aval

able funds or in a like face amount of Treasury bills maturing August 16. 1951
“1
Cash and exchange tenders will receive equal treatment. Cash adjustments will

SB c

made for differences between the par value of maturing bills accepted in exchan
and the issue price of the new bills.
The income derived from Treasury bills, whether interest or gain from the
sale or other disposition of the bills, shall not have any exemption, as such,
and loss from the sale or other disposition of Treasury bills shall not have
special treatment, as such, under the Internal Revenue Code, or laws amendator
or supplementary thereto.
gift

The bills shall be subject to estate, inheritance,

or other excise taxes, whether Federal or State, but shall be exempt fro

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

TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNINQ NEWSPAPERS,
Thursday, August 9, 1951______ •
aSF”

A

The Secretary of the Treasury, by this public notice, invites tenders for
$ l.BOO.QQOfQOQ y or thereabouts, of

91 -day Treasury bills, for cash and
333T

in exchange for Treasury bills maturing

August 16, 1951

, to be issued on

a discount basis under competitive and non-competitive bidding as hereinafter
provided.

The bills of this series vali be d a t e d ____ August 16, 19E>1

, and

■jEHT"
vd.ll mature
interest.

November l£, 19f>l

j

when the face amount vdll be payable "without

They vdll be issued in bearer form only, and in denominations of

1 000, $ 5>,000, $ 10,000, $ 100,000,

$ ,

00,000,

$f>

1 000,000

and $ ,

(maturity value).

Tenders vdll be received at Federal Reserve Banks and Branches up to the
Daylight Saving
closing hour, two o ’clock p.rn., Eastern
time, Monday, August 13. 1951»
Tenders will not be received at the Treasury Department, Washington.

1 000,

must be for an even multiple of $ ,

and in the case of competitive tenders

the price offered must be expressed on the basis of
decimals, e. g., 99.925>.

Each tender

Fractions may not be used.

100, with

not more than three

It is urged that tenders

be made on the printed forms and forwarded in the special envelopes which will
be supplied by Federal Reserve Banks or Branches on application therefor.
Others than banking institutions will not be permitted to submit tenders
except for their own account.

Tenders will be received without deposit from

incorporated banks and trust companies and from responsible and recognized
dealers in investment securities.

Tenders frcm others must be accompanied

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

48

TREASU RY D EPA R TM EN T

Information Service

WASHINGTON, D .C

RELEASE M O R N I N G N E W S P A P E R S
Thursday, A u g u s t 9, 1951.

'S-2768

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 , 3 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 n d ^ i n 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 A u g u s t 16,
, 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 ­
competitive b i d d i n g as h e r e i n a f t e r provided.
The bills of this
series w i l l be d a t e d A u g u s t 16, 1951, a nd w i l l m a t u r e N o v e m b e r 15,
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.
The y
will be i s sued in b e a r e r f orm only, a n d in d e n o m i n a t i o n s of $ ,
,
$ ,
, $
,
, $
,
, $
,
, a nd $ ,
( m a t u r i t y value).

1951

5 000

10 000

100 000

500 000

1 000,000

1 000

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 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, Monday, A u g u s t 13, 1951.
Te n d e r s w i l l no 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 .
B a c h t e nder m u s t be for a n e v e n
multiple of $ ,
, and i n 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
, 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 be m a d e on the p r i n t e d forms an d f o r w a r d e d in
the special e n v e l o p e s w h i c h w i l l be s u p p l i e d by F e d e r a l R e s e r v e
Banks or B r a n c h e s on a p p l i c a t i o n therefor.

1 000

100

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 o t be p e r m i t t e d to
submit tenders e x c e p t for t h eir o wn account.
T e n d e r s w 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 banks an d trust
companies and f rom 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
securities.
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 percent of the face a m o u n t of T r e a s u r y bills applied* for, u n less
the tenders a r e a c c o m p a n i e d by a n e x p ress g u a r a n t y of p a y m e n t by a n
incorporated 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 ened at
the Federal R e s e r v e Banks 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 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
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 ght to a c c e p t or
reject any or a ll tenders, in w h ole or in part, and hi s a c t i o n in
any such re s p e c t shall be final.
Su b j e c t to these r e s e r v a t i o n s ,
non-competitive tenders for $
or less w i t h o u t s t ated p r ice
trom 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 price

200,000

;

2
(in three de c i m a l s ) of accepted- 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 mad 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 u g u s t 16, 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 amou n t of
T r e a s u r y bills m a t u r i n g A u g u s t 16, 1951.
Cash and ex c h a n g e tenders
w i l l re 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 v a l u e o f 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 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
g a i n f rom the sale or o t h e r d i s p o s i t i o n of the bills, shall not
h a v e a n y exemption, as such, a n d loss f r o m the sale or o t her
d i s p o s i t i o n of T r e a s u r y bills shall not hav 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 bills shall be subject to estate,
inheritance, gift or o t h e r excise taxes, w h e t h e r F e d e r a l or State,
but shall be exem p t f r o m 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 th 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 Treasury
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 considered
to be interest.
U n d e r Sections 42 a n d 117 (a) (l) of the Internal
R e v e n u e Code, as a m e n d e d b y S e c t i o n 115 of the R e v e n u e A c t of 1941,
the a m o u n t of d i s c o u n t at w h i c h bills i s sued h e r e u n d e r are sold
s h a l l n ot be c o n s i d e r e d to accrue u n til 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, a n d 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 ca p i t a l assets.
A c c o r d i n g l y , the .owner of
T r e a s u r y bills (other t h a n life ins u r a n c e companies) issued h e r e ­
u n d e r n e e d include 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 ice pai 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
e i t h e r .upon sale or r e d e m p t i o n at m a t u r i t y d u r i n g the taxable
y e a r for w h i c h the r e t u r n is made, as 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 Uo. 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 bills a nd govern'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.

0O 0

?

2

The place of the banks in the Defense Bond program
was outlined by William H. Neal, Senior Vice President,
Wachovia Bank and Trust Company, Winston Salem, North
Carolina.

An informal noon luncheon was addressed by

Dr. Marcus Nadler, Professor of Finance, New York
University, New York City.

The afternoon was devoted

to discussion groups led by Mr. Hagemann and
Ralph Fontaine, President, State Association Section ABA
and Executive Secretary of the Kentucky Bankers Association.

0O 0

FOR RELEASE AUGUST 8, 1951

(

P ,M. NEWSPAPERS
/

Presidents and secretaries of State bank/associations,
State chairmen of the American Bankers Association and
national officers of the American Bankers Association met
with Secretary Snyder today to discuss increased partici­
pation by the nation*s banks in the Defense Bond program.
The conference considered the part bankers will play
in the Defense Bond Drive which the Treasury will launch
on Labor Day, September 3, and also studied the development
of a continuous effort by banks to increase Defense Bond
sales.
Presiding over the conference was H. Frederick Hagemann, Jrj
President of the Rockland-Atlas National Bank of Boston,
Massachusetts and Chairman of the ABA Savings Bonds Committee.
One of the highlights of the program was a panel
discussion of the various phases of the country*s defense
policy.

On the panel were:

Winfield W. Riefler, Moderator,

Assistant to Chairman of the Board, Federal Reserve System;
Francis H. Russell, Director,

Office of Public Affairs,

Department of State; Brigadier General A. Robert Ginsburgh,
USA, Office of the Secretary of Defense; Joseph E. Reeve,
Chief, Industry, Housing and Finance Branch, Fiscal Analysis
Division, Bureau of the Budget; and Earl A. Nash, Director,
Public Liaison Division, Office of Public Information,
National

Production Authority and Defense Production

Administration/

T R E A S U R Y DEPARTMENT
Information Service
IMMEDIATE RELEASE,
Wednesday, A u g u s t

8,

WASHINGTON, D .C

1951.

S

-2769

P r e s i d e n t s a nd s e c r e t a r i e s of State b a n k i n g a s s o c i a t i o n s ,
State c h a i r m e n of the A m e r i c a n B a n k e r s A s s o c i a t i o n a nd n a t i o n a l
officers of the A m e r i c a n B a n k e r s A s s o c i a t i o n m e t w i t h S e c r e t a r y
Snyder t o d a y to d i s c u s s i n c r e a s e d p a r t i c i p a t i o n b y the n a t i o n ’s
banks in the D e f e n s e B o n d progr am.
The c o n f e r e n c e c o n s i d e r e d the p a r t b a n k e r s w i l l p l a y in the
Defense B o n d D r i v e w h i c h the T r e a s u r y w i l l l a u n c h on L a b o r Day,
September 3* a n d a l s o s t u died the d e v e l o p m e n t of a c o n t i n u o u s
effort b y b a nks to i n c r e a s e D e f e n s e B o n d sales.
P r e s i d i n g ove r the c o n f e r e n c e was H. F r e d e r i c k H a g e m a n n , Jr.,
President of the R o c k l a n d - A t l a s N a t i o n a l B a n k of Boston,
Massachusetts an d C h a i r m a n of the A B A Savings B o n d s Committee.
One of the h i g h l i g h t s of the p r o g r a m was a p a n e l d i s c u s s i o n
of the v a r i o u s p h a s e s of the c o u n t r y ’s d e f e n s e policy.
On the
panel were:
W i n f i e l d W. R i e fler, M o d e r a t o r , A s s i s t a n t to
Chairman of the Board, F e d e r a l R e s e r v e System; F r a n c i s H. Russell,
Director, Offi c e of Publ i c Affairs, D e p a r t m e n t of State;
Brigadier G e n e r a l A. R o b e r t Ginsburgh, USA, O f fice of the S e c r e t a r y
of Defense; J o s e p h E. Reeve, Chief, Industry, H o u s i n g a nd F i n a n c e
Branch, F i s c a l A n a l y s i s Division, B u r e a u of the Budget; and
Earl A. Nash, D i r e ctor, Public L i a i s o n D i v ision, Office of Public
Information, N a t i o n a l P r o d u c t i o n A u t h o r i t y a n d D e f e n s e P r o d u c t i o n
Administration.
The p l a c e of the banks in the D e f e n s e B o n d p r o g r a m was o u t ­
lined by W i l l i a m H. Neal, S e n i o r V i c e President, W a c h o v i a B a n k
and Trust Company, W i n s t o n - S a l e m , N o r t h Carolina.
An informal
noon l u n cheon was a d d r e s s e d b y Dr. M a r c u s Nadler, P r o f e s s o r of
Finance, N e w Y o r k U n i v e r s i t y , N e w Y o r k City.
The a f t e r n o o n was
devoted to d i s c u s s i o n groups led b y Mr. H a g e m a n n a nd R a l p h
Fontaine, President, State A s s o c i a t i o n S e c t i o n A B A and E x e c u t i v e
Secretary of the K e n t u c k y B a n k e r s A s s o c i a t i o n .

0O0

- 7 P lan t S eized in I l l i n o i s
Two new c o u n t e r f e it $20 b i l l s appeared in c i r c u l a t i o n
on June 16 in I l l i n o i s .

One week l a t e r , on June 23,

S e c r e t S e r v ic e a g e n ts a r r e s t e d Roy O liv e r Reime, 37 > and
Leonard J . O lson, 41, o f Creve Coeur, I l l i n o i s , a s the
makers o f the n o te s , and se iz e d the p la n t and $*1-6,000 in
c o u n t e r f e it s which the p a i r had planned to s e l l and p a s s .
Both men r e c e iv e d se n ten ces o f 5 y e a r s .
A bus d r iv e r f o r the N iag ara F r o n t ie r T r a n s it
C o rp o ratio n in B u f fa lo , New York, was a r r e s t e d f o r a l t e r i n g
1 0 -cen t c o in s to the s iz e o f a penny.
12 c e n t s .

B u ffa lo bus f a r e i s

In making change, the d r iv e r would g iv e a

m u tila te d dime and d i r e c t the p a sse n g e r to put
in to the c o in box.

rz.

c en ts

The p en n y -sized dime and the two o th er

p en n ies would r e g i s t e r a s 3 c e n ts and the d r iv e r would
pocket nine c e n ts f o r h im s e lf.

The t r a n s i t company

e stim a te d th a t i t l o s t about $12,000 a month by t h i s
p r a c t ic e among-4 to» operators».
>*

oOo

- 6 -

K ansas C ity Court Metes Cut 40-Y ear Sentence
The dubious d i s t i n c t i o n o f r e c e iv in g the h e a v ie s t
sen ten ce e v e r imposed f o r c o u n t e r fe itin g in K ansas C ity ,
M isso u r i, ven t to Pay C. H a r r is a l i a s M. L . C o le.

H a r r is

l e f t a t r a i l o f c o u n t e r f e it money through T ex as, Oklahoma,
K an sas and M isso u ri and used c o u n t e r fe it $20 b i l l s to buy
a i r l i n e t i c k e t s from P o rt Worth, T e x as, to K ansas C ity ,
where S e c r e t S e r v ic e a g e n ts a r r e s t e d him.

They d i s ­

covered th a t he had a l s o s t o le n and fo rg e d U nited S t a t e s
S av in g s Bonds and th a t he was wanted by S t a t e a u t h o r i t i e s
f o r armed r o b b e r ie s and o th e r o f f e n s e s .

He was sen ten ced

to 30 y e a r s on c o u n t e r fe itin g ch arg es and 10 y e a r s f o r
bond fo r g e r y , a t o t a l sen ten ce o f 40 y e a r s to se r v e .
Tinrl 1'iinrifiy lo G k s b ad ^

0 0 j n -t-vw-»—

gervtee^ W

5

that !■
%'also tastes ~baek

r f e i t $20 b i l l in a h o s ie r y
s t o r e in L a n c a ste r , P en n sy lv an ia.

When q u estio n e d about

the b i l l she suddenly opened h er p u r se , grabbed seven more
c o u n t e r f e it s and crammed them in to h e r mouth.

She c o u ld n 't

chew f a s t enough to swallow them b e fo re o f f i c e r s reco v ered
the eviden ce and she was se n t to j a i l f o r 20 m onths.
/

-5

-

the cash r e g i s t e r w ithout lo o k in g a t the endorsem ent.

Next

morning the s t o r e c a s h ie r found the check in the r e c e i p t s
and g o t the s u r p r is e o f h e r l i f e .

The check had once been

en d o rsed , bu t the endorsement was c ro sse d o u t, and under­
neath i t were the words:

"No good — t h i s check was

s t o le n .”
$ 1 , 4 3 9 i n C o u n te r fe its S e ize d
D uring the y e a r the S e c r e t S e r v ic e cap tu red $ 1 ,4 3 9 ,^ 3 6
in c o u n t e r f e it b i l l s and c o in s , $ 5 2 1 , 1 8 7 .6 8 o f which was
s u c c e s s f u ll y p a sse d on r e t a i l sto r e k e e p e r s .

The b alan ce

was se iz e d b e fo re the c o u n t e r f e it e r s could put i t in
c ir c u la tio n .
In Los A n g ele s, C a l i f o r n i a , S e c r e t S e r v ic e men a f t e r
s e v e r a l weeks o f s u r v e illa n c e a r r e s t e d H arry B e l l and
R obert Campus and cap tu red a com plete p la n t f o r the
m anufacture o f $1 and $5 b i l l s .
and was sentenced to fo u r y e a r s .

Campus p lead ed g u i lt y
H arry B e l l was c o n v ic te d ,

but a f t e r the c o n v ic tio n R obert Campus r e v e a le d th a t h i s
r e a l name was C h arles M. B e l l and th a t H arry B e l l was h i s
fa th e r.

The son assumed f u l l r e s p o n s i b i l i t y f o r the crime

and Judge W illiam C. Mathes ordered d is m is s a l o f the
in d ictm en t a g a in s t H arry B e l l .

-

4 -

and comm ercial checks from the w ayside m a ilb o x e s.

He was

a r r e s t e d a f t e r h av in g cashed s e v e r a l o f the s t o le n ch eck s.
F o llo w in g h i s a r r e s t , Kovach was q u estio n e d about
u n solved farmhouse r o b b e r ie s n ear E r i e , r e s u l t i n g in the
reco v ery o f s e v e r a l r a d io and t e l e v i s i o n s e t s , e l e c t r i c a l
a p p lia n c e s , shotguns and o th er a r t i c l e s which he adm itted
h av in g s t o le n in the r o b b e r ie s .

Kovach was se n t to p r is o n

f o r 22 months, a f t e r e n te r in g a g u ilty p L e a .
In I n d ia n a p o lis , In d ia n a , th ree men s t o l e about $50,000
worth o f ch eck s, both Government and com m ercial, b e fo re they
were rounded up by the S e c r e t S e r v ic e .

A rchie P. Harmeson,

E rn e st L ifo r d , J r . and Edwin V. A tle e , whose t h e f t s t o t a le d
over 200 ch eck s, were se n t to p r is o n f o r term s ran g in g
from one to f i v e y e a r s .
Check Marked tTNo Good1’ Cashed
The S e c r e t S e r v ic e b e lie v e s i t h as found the u ltim a te
in c a r e le s s n e s s on the p a r t o f m erchants who cash ch eck s.
In a m idw estern c i t y an unknown woman walked in to a
fu r n itu r e s t o r e , s e le c t e d some l i v i n g room f u r n it u r e , and
gave the salesm an a $120 Government check to make a $30
d e p o s it on h er p u rc h ase .
endorse the check.

The salesm an t o ld the woman to

She turned h er back and appeared to

be w r itin g on the check.

When she handed i t back to him

the salesm an counted out the change and put the check in

- 3 -

98,9

Cent of C o n v i c t i o n s

D u r i n g the year,

C h ief B a u g h m a n reported,

of the S e c r e t S e r v i c e a r r e s t e d

2,288

in C a ses B r o u g h t to T r i a l

2 ,7 7 2

for c h e c k a n d b o n d forgery,

offenses,

177

and

c onvictions,

98.8

including

307 f o r c o u n t e r f e i t i n g

f or o t h e r crimes.

representing

persons,

s p e c i a l agents

There were

2 ,5 0 7

p e r c ent of c o n v i c t i o n s

in

a l l cases that w e n t to trial.

P r i s o n s e n t e n c e s d u r i n g the y e a r a g g r e g a t e d
a n d a d d i t i o n a l s e n tences
pro b a t e d . F i n e s

of

2,590

y e ars w e r e

2,878

years,

s u s p e n d e d or

in c r i m i n a l cases b r o u g h t to t r i a l b y the

S e c r e t Se r v i c e t o t a l e d $ 141,485.88.

T he S e c r e t S e r v i c e r e c e i v e d f o r i n v e s t i g a t i o n 3 2 , 7 3 8
f o r g e d checks a nd 5,975 f o r g e d G o v e r n m e n t b o n d s d u r i n g the
period.

F o r g e d checks i n v e s t i g a t e d to t a l e d 38,102,

involving $2,752,493.9^.
of

6,569

Agents

completed investigation

f o r g e d b o n d s w i t h a face v a l u e of $411, 9 5 4 . 0 3 .

C h i e f B a u g h m a n said the S e c r e t S e r v i c e
h a n d a n a c c u m u l a t i o n of o v e r

15,000

s t ill h a d on

f o r g e r y cases at the

c l ose of the f i s c a l year.

P e n n s y l v a n i a M a n L o ots R u r a l M a i l b o x e s

I n one case r e v i e w e d in the y e a r - e n d report,
mailboxes were
of Erie,

the targ e t of a c h e c k thief.

Pe n n s y l v a n i a ,

drove his

rural

J o h n M. K o v a c h

t r u c k a l o n g r u r a l rout e s

in the s u b u r b a n a r eas of that c i t y a n d stole G o v e r n m e n t

2

Young r e c e iv e d a f iv e - y e a r p r is o n se n te n c e , and h as
been adm itted to the U nited S t a t e s P u b lic H ealth S e rv ic e
H o s p it a l, L exin gto n , Kentucky, f o r treatm en t o f h i s a d d ic tio n .
A t r a g i c s t o r y was u n folded in the c ase o f C arl Jo n es
and Benny W ise, New York youths a r r e s t e d f o r check fo r g e r y .
Jo n e s, whose adm itted use o f m arihuana over a ten -yearp e rio d had caused him to be d ish o n o rab ly d isc h a rg e d from
the Army, sw itched to h e ro in about a y e ar b e fo re h i s a r r e s t .
Unable to h old r e g u la r jo b s , he turned to t h e f t and fo r g e r y
to g e t money f o r d r u g s.

H is acco m p lice, W ise, a l s o a h e ro in

a d d ic t , was a r r e s t e d and tak en to a Brooklyn p o lic e s t a t i o n ,
where he committed s u ic id e .

Jo n e s was sen ten ced to two

y e a r s in p r is o n and se n t to the P u b lic H ealth H o s p ita l a t
L e xin gto n , Kentucky, f o r tre atm en t.
On June 8 a man and woman, both drug a d d i c t s , were
a r r e s t e d in H ouston, T e x as, f o r fo r g in g t h ir t e e n Government
checks worth $ 8 1 7 .

Another co u p le, a r r e s t e d in W ashington,

D. C ., on June 15, a r e charged w ith h avin g fo rg e d $576 in
s t o le n Government checks f o r the purchase o f i l l i c i t
n a r c o tic s.

The man, a h e ro in a d d ic t , s a id th a t he re q u ire d

f iv e or s i x sh o ts o f the drug d a i l y .

ividence th a t n a r c o tic a d d ic ts a r e s t e a l i n g and
fo r g in g Government checks to buy i l l i c i t drugs was con tain ed
in a f i s c a l year-en d r e p o r t subm itted to S e c r e ta r y Snyder
today by U, E. Baughman, C h ief o f the U nited S t a t e s S e c r e t
S e r v ic e .
In a t l e a s t fo u r c a se s developed by T re asu ry a g e n ts
d u rin g the twelve-month p e rio d ended June 30, drug
a d d ic tio n le d to the r i f l i n g o f m a il boxes and the subsequent
fo r g e r y o f Government ch eck s, C h ief Baughman s a i d .
An in v e s t i g a t i o n , launched in C in c in n a ti fo llo w in g

C

V
^

the a r r e s t o f a p r o f e s s io n a l dan cer f o r the attem pted h old- j f
up o f a l e t t e r c a r r i e r , re v e a le d th a t a group o f a d d ic ts
th ere had been s t e a l i n g Government checks from m a il boxes
to s a t i s f y t h e ir c ra v in g f o r n a r c o t ic s .

The d an ce r,

W alter Young, who was under the in flu e n c e o f n a r c o t ic s a t
the time o f h i s a r r e s t , s a id th a t the group fo rg e d and
cashed the s t o le n checks to buy i l l i c i t d ru g s, which c o s t
each a d d ic t over $20 a day.
Evidence developed d u rin g the I n v e s tig a tio n , c a r r ie d on
jo i n t l y by the S e c r e t S e r v ic e , the Bureau o f N a rc o tic s and
P ost O ffic e in s p e c t o r s , in d ic a te d th a t p e d d le rs o f h e ro in
and morphine in C in c in n a ti ad m in iste re d the d ru gs to minors
w ithout c o s t u n t i l they became a d d ic te d , then su g g e ste d th at
they s t e a l and fo rg e Government checks to s u s t a i n t h e ir
a d d ic tio n .

TREA SU RY DEPARTMENT

Information Service
REIEASE S T O D A Y N EWSPAPERS,
August 12, 1 9 5 1«____________

WASHINGTON, D .C

S-

277O

E v i d e n c e that n a r c o t i c a d d i c t s are s t e a l i n g a n d f o r g i n g
Government checks to b u y il l i c i t d r u g s was d e s c r i b e d in a fiscal
year-end r e p o r t s u b m i t t e d to S e c r e t a r y S n y d e r t o d a y by U. E.
Baughman, Chief of the U n i t e d States S e cret Service.
I n at least four cases d e v e l o p e d b y T r e a s u r y agents d u r i n g
the t w e l v e - m o n t h p e r i o d e n d e d June 30, d r u g a d d i c t i o n led to the
rifling of m a i l boxes and the s u b s e q u e n t f o r g e r y of G o v e r n m e n t
checks, C h i e f B a u g h m a n said.
A n invest i g a t i o n , la u n c h e d in C i n c i n n a t i f o l l o w i n g the
arrest of a p r o f e s s i o n a l d a n c e r for the a t t e m p t e d h o l d u p of
a letter carrier, r e v e a l e d that a g r o u p of a d d i c t s there h a d
been s t e a l i n g G o v e r n m e n t checks from m a i l boxes to s a t i s f y their
craving for narcotics.
The dancer, W a l t e r Young, w h o was u n d e r
the influence of n a r c o t i c s at the time of his arrest, said that
the group f o r g e d a n d c a s h e d the s t o l e n checks to b u y i l l icit
drugs, w h i c h cost e a c h a d d i c t over $20 a day.
E v i d e n c e d e v e l o p e d d u r i n g the invest i g a t i o n , ca r r i e d on
jointly b y the S e cret Service, the B u r e a u of N a r c o t i c s and
Post Office inspectors, i n d i c a t e d that p e d d l e r s of h e r o i n and
morphine in C i n c i n n a t i a d m i n i s t e r e d the d r ugs to m i n o r s w i t h o u t
cost until they b e came addicted, then s u g g e s t e d that the y steal
and forge G o v e r n m e n t checks to s u s t a i n t h eir addiction.
Y o u n g r e c e i v e d a f i v e - y e a r p r i s o n sentence, a n d has b e e n
admitted to the U n i t e d States Public H e a l t h S e r v i c e Hos p i t a l ,
Lexington, Ke n t u c k y , for t r e a t m e n t of his addiction.
A tragic s t o r y was u n f o l d e d in the case of Carl Jones and
Benny Wise, N e w Y o r k y o u t h s a r r e s t e d for c h e c k forgery.
Jones,
whose a d m i t t e d use of m a r i h u a n a over a t e n - y e a r p e r i o d h a d caused
him to be d i s h o n o r a b l y d i s c h a r g e d fro m the Army, s w i t c h e d to
heroin a b o u t a y e a r b e fore h i s . a r r e s t .
U n a b l e to h o l d r e g u l a r
jobs, he t u r n e d to theft a nd f o r g e r y to get m o n e y for drugs.
His
accomplice, Wise, a lso a h e r o i n addict, was a r r e s t e d an d t a ken to
a B rooklyn p o l i c e station, w h e r e he c o m m i t t e d suicide.
Jones
was sentenced to two years in p r i s o n a n d sent to the P u b l i c H e a l t h
Hospital at Lexington, K e n tucky, for treatment.

60
~

2

-

On June 8 a m a n an d woman, b o t h d r u g addicts, w ere a r r e s t e d
in Houston, Texas, for
f o r g i n g t h i r t e e n G o v e r n m e n t checks
worth $817.
A n o t h e r couple, a r r e s t e d in W a s h i n g t o n , D. C., on
June 15, are c h arged w i t h h a v i n g f o r g e d $578 in s t o l e n
Government checks for the p u r c h a s e of il l i c i t n a r c o t i c s . The
man, a h e r o i n addict, said that he r e q u i r e d five or six shots of
the d r u g daily.

98.9

Per Cent of C o n v i c t i o n s

in Cases B r o u g h t to T r i a l

D u r i n g the year, C h i e f B a u g h m a n reported, s p e c i a l a g e n t s of
the Secret S e r vice a r r e s t e d 2 , 772 persons, i n c l u d i n g 2 , 2 8 8 for
check a n d b o n d forgery, 307 for c o u n t e r f e i t i n g offenses, a n d 177
for other crimes.
There w ere 2 , 507 convictions, r e p r e s e n t i n g
98.8 per cent of c o n v i c t i o n s in a ll cases that w e n t to trial.
P r i s o n sen t e n c e s d u r i n g the y e a r a g g r e g a t e d 2,878 years,
and a d d i t i o n a l sentences of 2,590 y e ars were s u s p e n d e d
or
probated.
F i nos in cr i m i n a l cases b r o u g h t to trial b y the
Secret Service to t a l e d $ 1 4 1 , 485.88.
The S e c r e t Service r e c e i v e d for i n v e s t i g a t i o n 3 2 , 7 3 8 f o rged
checks a n d 5,975 f o r g e d G o v e r n m e n t b o nds d u r i n g the period.
Forged checks i n v e s t i g a t e d to t a l e d 38,102, i n v o l v i n g
$2,752,493.94.
A g e n t s c o m p l e t e d i n v e s t i g a t i o n of
f o rged
bonds w i t h a face value of $ 411,95^.03.

6,569

C h ief B a u g h m a n said the S e cret S e r vice still h a d on h a n d a n
accumulation of over 1 5 ,000 f o r g e r y cases at the close of the
fiscal year.

P e n n s y l v a n i a M a n Loots R u r a l M a i l b o x e s
In one case r e v i e w e d in the y e a r - e n d report, r u r a l m a i l ­
boxes were the target of a c h e c k thief.
J o h n M. K o v a c h of Erie,
Pennsylvania, d r ove his t r u c k a l o n g r u r a l r o utes in the s u b u r b a n
areas of that c ity an d stole G o v e r n m e n t a nd c o m m e r c i a l checks
from the w a y s i d e m a i l b o x e s .
He was a r r e s t e d a f t e r h a v i n g cashed
several of the s t o l e n c h e c k s .

61
-3 F o l l o w i n g his arrest, K o v a c h was q u e s t i o n e d a b o u t u n s o l v e d
farmhouse r o b b e r i e s n e a r Erie, r e s u l t i n g in the r e c o v e r y of
several r a dio an d t e l e v i s i o n sets, e l e c t r i c a l appl i a n c e s , s h o t ­
guns a nd o t h e r a r t i c l e s w h i c h he a d m i t t e d h a v i n g s t o l e n in the
robberies.
K o v a c h was sent to p r i s o n for 22 months, a f t e r
entering a g u i l t y plea.
In I n d i a napolis, Indiana, three m e n stole a b o u t $ 5 0 * 0 0 0
worth of checks, b o t h G o v e r n m e n t a nd commercial, b e f o r e they
were r o u n d e d up by the S e cret Service.
A r c h i e P. Ha r m e s o n ,
Ernest Liford, Jr. and E d w i n V. Atlee, w h o s e thefts t o t a l e d over
checks, wer e sent to p r i s o n for terms r a n g i n g fro m one to
five y e a r s .

200

Ch e c k M a r k e d

"No Good"

Cashed

The S e c r e t Service b e l i e v e s it has found the u l t i m a t e in
carelessness on the p art of m e r c h a n t s wh o cas h checks . In a
m i d y e s t e r n c i t y a n u n k n o w n w o m a n w a l k e d into a f u r n i t u r e store,
selected some l i v i n g r o o m furniture, an d gave the s a l e s m a n a
$120 G o v e r n m e n t c h e c k to m a k e a $ 30 d e p o s i t on h e r purchase.
The
s a l e s m a n tol d the w o m a n to e n d o r s e
the check. She turned
her
b a c k a nd a p p e a r e d to be w r i t i n g on
the check. W h e n she
handed it b a c k to h i m the s a l e s m a n c o u n t e d out the change a n d put
the
c h eck in the cash r e g i s t e r w i t h o u t
l o o k i n g at the e n d o r s e m e n t .
Next m o r n i n g the store c a s h i e r found the c h e c k In the r e c e i p t s
and got the surprise of h e r life.
Th e c h e c k h a d once b e e n
endorsed, but the e n d o r s e m e n t was c r o s s e d out, a n d u n d e r n e a t h
it were the words*
"No good -- this c h e c k was stolen."

$1,439*^36

in C o u n t e r f e i t s

Seized

D u r i n g the y e a r the S e cret Service c a p t u r e d $ 1 , 4 3 9 * ^ 3 6 in
counterfeit b i lls a n d coins, $
,
of w h i c h was s u c c e s s ­
fully p a s s e d on r e t a i l s t o r e k eepers.
The b a l a n c e was seized
before the c o u n t e r f e i t e r s could p ut it in circulation.

521 187.68

In Los Angeles, California, S e c r e t S e r vice m e n a f t e r s e v eral
weeks of s u r v e i l l a n c e a r r e s t e d H a r r y -Bell a n d R o b e r t Campus a nd
captured a compl e t e p l ant for the m a n u f a c t u r e of
a nd
bills.
Campus p l e a d e d g u i l t y an d w as s e n t e n c e d to four years.
Harry Bell
was convicted, but a f t e r the c o n v i c t i o n R o b e r t Campus r e v e a l e d
that his rea l name was C h a rles M. B e l l a nd that H a r r y B e l l was h i s
father.
The s on a s s u m e d full r e s p o n s i b i l i t y for the crime and
Judge W i l l i a m C. M a t h e s o r d e r e d d i s m i s s a l of the i n d i c t m e n t
against H a r r y Bell.

$1

$5

62
-

k

-

K a n s a s C i t y Court Metes Out 4 0 - Y e a r S e n tence
The d u b i o u s d i s t i n c t i o n of r e c e i v i n g the h e a v i e s t s e n tence
ever i m p o s e d for c o u n t e r f e i t i n g in K a n s a s City, M i s s o u r i , went
to P a y C. H a r r i s a l ias M. L. Cole.
H a r r i s left a t r ail of
counterfeit m o n e y t h r o u g h Texas, Oklahoma, K a n s a s a n d M i s s o u r i
and used c o u n t e r f e i t $20 b i lls to b u y a i r l i n e t i c kets f r o m
Fort Worth, Texas, to K a n s a s City, w h e r e S e c r e t S e r v i c e agents
arrested him.
T h e y d i s c o v e r e d that he h a d a l s o s t o l e n and f o r g e d
United States S a v i n g s B o n d s a n d that h e was w a n t e d b y State
authorities for a r m e d r o b b e r i e s a n d o t h e r offenses.
H e was
sentenced to
y e ars on c o u n t e r f e i t i n g charges a n d 10 y e a r s for
bond forgery, a total sentence of 40 years to serve.

30

D e l o r e s A n n G o d w i n a t t e m p t e d to pass a c o u n t e r f e i t $ 2 0 b i l l
in a h o s i e r y store in Lancaster, P e n n s y l v a n i a .
When questioned
about the b i l l she s u d d e n l y o p e n e d h e r purse, g r a b b e d s e v e n m o r e
counterfeits and cr a m m e d t h e m into h e r mouth.
She c o u l d n ’t
chew fast e n o u g h to s w a l l o w them b e f o r e o f f i c e r s r e c o v e r e d the
evidence, a n d she was sent to jail for 20 m o n t h s .

P l a n t S e i z e d in I l l i n o i s
Two n e w c o u n t e r f e i t $20 b i l l s a p p e a r e d in c i r c u l a t i o n on

June 16 in Illinois.
One w e e k later, on June 23, S e c r e t S e r vice
a g e n ts a r r e s t e d H o y O l i v e r Reime, 37, a n d L e o n a r d J. Olson, 4l,
of Creve Coeur. Illinois, as the m a k e r s of the notes, and seized
the p l a n t a n d $ 4 6 , 0 0 0 in c o u n t e r f e i t s w h i c h the p a i r h a d p l a n n e d
to s e l l an d pass. B o t h m e n r e c e i v e d s e n t ences of 5 years.
A bus d r i v e r for the N i a g a r a F r o n t i e r T r a n s i t C o r p o r a t i o n

in Buffalo, N e w York, w as a r r e s t e d for a l t e r i n g 1 0 - cent coins „
to the size of a penny.

B u f f a l o bus

fare

is 12 cents.

In

making change, the d r i v e r w o u l d give a m u t i l a t e d dim e a nd d i r e c t
the p a s s e n g e r to put 12 cents into the c o i n box.
The pennysiz e d dime a n d the two o t h e r pe n n i e s w o u l d r e g i s t e r as 3 cents
and the d r i v e r w o u l d p o c k e t nine cents for hi m s e l f . The transit
company e s t i m a t e d that it lost a b o u t $ 1 2 , 0 0 0 a m o n t h b y this

p r a c tic e .

oOo

¿ 77/

IMMEDIATE RELEASE
Auggst 7. 1951

<?
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 194&, from January 1, 1951,
to July 28, 1951, inclusive, as follows:

•
Products of the :
Philippines
:
•
Buttons .........

Established Quota :
Quantity
:

850,000

Unit of
Quantity

: ImDorts as of
:
July 28, 1951

Gross

308,152
656,374

Cigars

200,000,000

Number

Coconut Oil .....

448,000,000

Pound

76,556,311

Cordage .........

6,000,000

tt

4,920,886

Rice ............

1,040,000

n

-

(refined ....
1,904,000,000

Sugars

Pound
1,108,297,933

(unrefined ..
Tobacco

6,500,000

Pound

73,900

64

TREASURE DEPARTMENT
Washington

IMMEDIATE RELEASE
ThursdayT August 9« 1951

S-2771

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 194-6, from Januaiy 1, 1951,
to July 28, 1951, inclusive, as follows!

•
#

Products of the
Philippines

Established Quota
Quantity

s

.

•

: Unit of
i Quantity

Imports as of
July 28, 1951

#

Gross

308,152

200,000,000

Number

656,374

448,000,000

Pound

76,556,311

6,000,000

Pound

4,920,886

1,040,000

Pound

1,904,000,000

Pound

850,000

Buttons 09900993900
Cigars

3 0 3 3 9 0 0 3 0 3 0 0

Coconut Oil 0099000
Gorda ge

© o o o o o o o o o o

ftLC6

^

(refined-

o ©o

o

0

Sugars
(unrefined
Tobacco

© o o

o o o o o o o o o o o

-

9 0 0

3 9 9 0 9 9 0

0 0-'

1,108,297,933

Cl 9 0 0 3

6,500,000

oCo

Pound

73,900

IMMEDIATE RELEASE
Jfcttgust %_ 1 9 5 1
I
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 July 28, 1951? inclusive, as follows:

Commodity

Period and Quantity

Unit
of
Quantity

Imports as of
July 28,
1951

Whole milk, fresh or
s o u r .... .

Calendar year

3 ,000,000

Gallon

7 ,691*

C r e a m ............. .

Calendar year

1,£00,000

Gallon

1,31*1*

(Apr. X, 1951 (July 15, 1951

£,000,000

Pound

6,062

(July 16, 1951(Oct. 31, 1951

£,000,000

Pound

661

Butter........... .

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

29,239,808

Pound

Quota filled

White or Irish Potatoes:
certified s e e d .... . 12 months from
other .............. Sept. 15, 1950

l£0,Q00,000
60,000,000

Pound
Pound

Quota filled
Quota filled

£,000,000

Pound

Quota filled

Gallon
Gallon
Gallon

Quota filled
Quota filled
Quota filled

Walnuts ............... Calendar year

(1)

Petroleum and petroleum
products ............ Calendar year
Venezuela
2,613*137*096
Netherlands
822,65U,271
Other Countries 9 6 3 ,1*29*333

(1)

The proviso to item 717 (b) limits the imports for consumption at
the quota rate to 21,9 2 9 ,8£6 pounds during the first nine months
of the calendar year.

66

TREASURY DEPARTMENT
Washington

IMMEDIATE RELEASE
Thursday, August 9, 1951

S-2772

The Bureau of Customs announced today preliminary figures showing the
imports for consumption of commodities within quota limitations provided
for under the General Agreement1on Tariffs and Trade, from the beginning
of the quota periods to July 28, 1951, inclusive, as follows:

Commodity

Period and Quantity

Unit
of
Quantity

Imports as of
July 28,
1951

Whole milk, fresh or
sour ••••••••••••.... .* Calendar year

3,000,000. Gallon

7 ,691*

Cream

1,500,000

1,3b h

> Calendar year

Gallon
•

(Apr. X, 1951 (July 15, 1951

5 ,000,000

Pound

6,062

(July 16, 1951(Oct, 31, 1951

5 ,000,000

Pound

661

29,239,808

Pound

Quota filled

150 ,000,000
60,000,000

Pound
Pound

Quota filled
Quota filled

5 ,000,000

Pound

Quota filled

Gallon
Gallon
Gallon

Quota filled
Quota filled
Quota filled

Butter •»••««•*••••••••

Fish, fresh or frozen,
filleted, etc*, cod,
haddock, hake, pollock,
cusk, and rosefish ,.* Calendar year
White or Irish Potatoes*
certified seed «,»«•*« 12 months from
other •»..•o********** Sept, 15, 1950
Walnuts

Calendar year

(1)

Petroleum and petroleum
products •••*•**»••*», Calendar year
Venezuela
Netherlands
Other Countries

2,613,137,096
822,65!+, 271
963 ,1+29,333

\
(1)

The proviso to item 717 (b) limits the imports for consumption at
the quota rate to 21,929,856 pounds during the first nine months
of the calendar year*

-POfTIMMEDIATE RELEASE,
Awgagt^g, 195!----------TheBureau -of-Customs annoura^0Jpggj ^jej^minary figures showing the
quantities of wheat and wheat flourA 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, 19h2,
for the 12 months commencing May 29, 101, as follows:

Wheat
Country
of
Origin

Imports
Established s
Quota
tMay 29, 10 1 , to
îAugust 7* 1951
(Bushels)
(Bushels)

795,ooo
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
1,0
0
0
France
Greece
100
Mexico
Panama
Uruguay
Poland and Danzig
1Sweden
Yugoslavia
—
Norway
«a»
Canary Islands
1,000
Rumania
100
Guatemala
100
Brazil
Union of Soviet
Socialist Republics
100
100
Belgium
.."SU07500

121,615
——
—
—
-

—
-

—
mm
■mm
—
_

mm
mm
mm
mm
—
—

:
Wheat flour, semolina,
s
crushed or cracked
8
wheat, and similar
s
wheat products
: Established 8
Imports
s
Quota
8 May 29, 101,
8 to August 7, 1
(Pounds)
(Pounds)

3 ,815,000
2h ,000
1 3,0 0 0
13,0 0 0
8,000
75,000
1 ,0 0 0
£,000
£,000
1,0 0 0
1,0 0 0
1,0 0 0
iU,ooo
2,000
12,0 0 0
1,0 0 0
1,0 0 0
1*000
1,0 0 0
1,0 0 0
1,0 0 0
1,000
1,000
1,000
1,000
—

—
—

-

—

-

mm

—

1 ,156,826
—
—
10,000
—
12
.—
—
—
292 .
—
—

—
—
—
—
mm
•—

—

k c ;bT5

ii,

000 ,000

1,167,130

•

TREASURY DEPARTMENT
Washington

S-2773

IMMEDIATE RELEASE
Thursday. August 9, 1951

The Bureau of Customs announced today preliminary figures showing the quan­
tities of wheat and wheat flour authorized to be entered, or withdrawn from
warehouse, for consumption under the import quotas established in the President's
proclamation of May 28, 1941, as modified try the President's proclamation of
April 13, 194-2, for the 12 months commencing May 29, 1951, as follows:

Wheat flour, semolina,
crushed or cracked
wheat, and similar
wheat products
Established :
Imports
Established:
Imports
Quota
: May 29, 1951,
Quota
;May 29, 1951, to
:to August 7. 1951
: August 7, 1951
(Bushels)
(Pounds)
(pounds)
(Bushels)
Wheat

Country
of
Origin

Canada
China
Hungary
Hong Kong
Japan
United Kingdom
Australia
Germany
Syria
New Zealand
Chile
Netherlands
Argentina
Italy
Cuba
Prance
Greece
Mexico
Panama
Uruguay
Poland and Danzig
Sweden
Yugoslavia
Norway
Canary Islands
Rumania
Guatemala
Brazil
Union of Soviet
Socialist Republics
Belgium

795,000

121,615

-

-

-

-

100

•-

—

-

100
100

-

—

-

-

—

100
2,000
100

—

—

—

-

1,000

—

—

—

100

—

—

—

-

-

—

-

—

—

—

—

—

—

—

—

1,000
100
100

—

3,815,000
24,000
13,000
13,000
8,000
75,000
1,000
5,000
5,000
1,000
1,000
1,000
14 ,0 0 0
2,000
12,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000

1,156,826
—
-

10,000
12
—
—

—

292
—
—
—

—

•H

...

^m

_

—

100
100

—

_

800,000

121,615

mm

4,000,000

mm

1,167,130

-

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

United Kingdom ........
Canada ........... ....
France ...............
British India .........
Netherlands ..........
Switzerland ...........
Belgium ...............
Japan ................
China ............. .
E g y p t ................
C u b a .................
Germany..............
I t a l y ................

: Total imports
: Sept. 20,1950 to
: Julv 28. 1951

Imports
: Established ;
s
33-1/3* Of : Sept. 20, 1950
; Total Quota : to July 28, 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
1,854
—
—
24,156
—

1,441,152
75,807
* 22,747
14,796
12,853
25,443
7,088

1,441,152
—
68,155
—
—
—
1,854
—
—
—
—
24,156
«*

5.482,509

1,709.708

1.599.886

1,535,317

1/ Included in total imports, column 2.
Prepared by the Bureau of Customs

1/

V

1-

IMMEDIATE RELEASE
August X * 1951

U

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
1'
'
COTTON (other than linters) (in pounds)
Cotton under 1-1/8 inches other than rough or harsh under 3/A”
Imports Sept. 20-r 1950 to July 28, 1951« inclusive

Country of Origin

Established Quota

Imports

783,816
247,952
2,003,483
1,370,791
8,883,259
618,723

2,174
161,784
37,669
602,956

475,124
5,203
237
9,333

«
-

Egypt and the AngloEgyptian Sudan ....
Peru ..... ;...... ..
British India ......
China .............
Mexico .............
Brazil ........... ..
Union of Soviet
Socialist Republics
Argentina ....... .
Haiti ............. .
Ecuador ...........

Country of Origin

Established.Quota

Honduras .;.......
Paraguay .............
Colombia .............
Iraq
British East Afrida ...
Netherlands E. Indies
Barbados ..;.... .....
l/0ther British W. Indies
Nigeria
2/0ther British W. Africa
¿/Other French Africa ...
Algeria and Tunisia ...

752
871
124
195
2,240
71,388

Imports

**’

21,321
5,377
16,004
689

1/ Other than Barbados, Bermuda, Jamaica, Trinidad, and Tobago.
2/ Other than Gold Coast and Nigeria.
¿/ Other than Algeria, Tunisia, and Madagascar.
Cotton, harsh or rough, of less thsui 3/4"
Imports Sept. 20, to July 28. 1951

Cotton 1-1/8* or mor^. but less than 1-11/16”
Imports Feb. 1, to July 28. 1951__________

Established Quota (Global)

Imports

Established Quota (Global) .

Imports

29,838,723

45,656,420

Quota filled

70,000,000

Cotton, harsh or rough (except cotton of perished
staple, grabbots. and cotton pickings) of 1-3/16
inches or more but less than 1-3/8 inches
Imports July 5. 1951. to July 28. 1951
Established Quota (Global)
1,500,000

Imports

/

0

-

STSvausw a iv ia sQ W i

T

TREASURY DEPARTMENT
Washington

IMMEDIATE RELEASE
Thursday, August 9, 1951

S-277U

Preliminary.data on imports for consumption of cotton and cotton waste chargeable to the quotas
established by the President's Proclamation of September 5, 1939, as amended
COTTON (other than linters) (in pounds)
Cotton under 1—1/8 inches other than rough or harsh under 3/U,r
imports Sept. 20, 19#) to July ¿8, 1931, inclusive
Country of Origin

Established Quota

Egypt and the AngloEgyptiar Sudan
Peru ••«•••••..... ..
British India *.... .
China ••••••••......
Mexico ........... ..
Brazil
Union of Soviet
Socialist Republics
Argentina
Haiti
Ecuador .......... ..

783,816
21*7,952
2,003,1*83
1,370,791
8,383,259
618,723

Imports
2,171*
161,781*
37,669
602,956

U75,12U
5,203 .
237
9,333

-

-

Country of Origin

Established i

Honduras
Paraguay ••••••••••••••
Colombia ....... .
Iraq ..................
British East Africa ...
Netherlands E* Indies
Barbados ............
l/Other British W. Indies
Nigeria ........... .
2/other British W. Africa
3/Other French Africa ...
Algeria and Tunisia ...

752
871
121*
195
2,21*0
71,388
21,321
5,377
16,001*
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
Imports Sept. 20, to July 28, 1951
Established Quota (Global)

70,000,000

3/h"

Imports
29,838,723

Cotton l-l/8w or more, but less than l-ll/l6!r
Imports Feb. 1, to July 28,' 195Ï
Established Quota (Global)

1*5, 656,1*20

Cotton, harsh or rough (except cotton of perished
staple, grabbots, and cotton pickings) of l-3/l6"
inches or more but less than 1-3/d inches
imports July 5, 1951, to July 28, 1951
Established Quota (Global)
1 ,500,000

Imports

Imports
Quota filled

Imports

COTTON WASTES

(In pounds)
COTTON CARD STRIPS made from cotton having a staple of less than I-3 /I6 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 /1 6 inches or more
in staple length in the case of the following countries: United Kingdom, France, Netherlands,
Switzerland, Belgium, Germany, and Italy:

Established
Country of Origin

:

United Kingdom •*•*••••*
Canada •«•••*«»••»•«**••
France •«••••*•••*••*•••
British India *•**«**.•.•*
Netherlands •••••*••••••
Switzerland
•••*«••
Belgium •••••••«••••»*•*
Japan
China
Egypt
Cuba
Germany *•••.•*••••«••*«
Italy ****••**..*•*•*•.*

1/

TOTAL QUOTA

: Total imports
: Sept* 20, 1950 to
; July 28, 1951

1»,323,1(57
239,690
227,1*20
69,627
68*21*0
ilk,3 88
38,559
31*1*535
17,322
8 ,1 3 5
6,51*1*
76 ,3 2 9
21,263

1,1*1*1,152
1 0 7 ,1 9 1
6 8 ,1 5 5
67,200

5,1-82,509

1,709,708

Included in total imports, column 2*

Prepared by the Bureau of Customs

—
—

i,85k
-

: Established
:
33-1/3$ of
: Total Quota
l,kkl,l52
-

75,807
—

22,7k7
lk,796
12,853
-

Imports
Sept* 20, 1950to July 28, 1951
l,kkl,152
—
6 8 ,15 5
mm
mm

—
1,85k
—

-

-

—

—

—

—

—

—

2k,156
-

—

?5,kk3
7,088

2k,156

1,599,886

1,535,317

-

1,

TREASURY DEPARTMENT
Washington

The following address by Secretary Snyder
before a conference of State Payroll
Savings Chairmen of the United States
Savings Bonds Program at the Treasury,
Washington, D, C., is scheduled for
delivery at 9 i h 5 a.m,, ¿DT, Friday,
August 10, 1951/ and is for release at
that time.

It is a real pleasure for me to meet with you again and to have
this opportunity to discuss how we can bring about increased participation
in the Payroll Savings Plan. When I talked with you before, at our first
meeting on October 5> of last year, I remarked that the most important
approach we have for stimulating thrift among the American people is
through increasing payroll savings. That statement, I believe, is just
as true today as it was last October* But 1 would like to point out
the fact now that it is even more important this year than it was last
year that we really get together and sell the merits of the Payroll
Savings Plan just as widely as possible.
As all of you know, our meeting today is part of the preparations
for the new defense bond drive that will start on Labor Day, September 3.
I want to point out, though, that the long-range, continuing aspects
of the Payroll Savings Plan are just as important as the drive aspect,
if not more so. Payroll Savings can be of substantial assistance to the
success of our national defense effort, provided we all give it energetic
support. I donft need to add that I know I can count on you. Your
contributions of time and effort within the past year on behalf of the
Payroll Savings Plan have proved your public spirit and your devotion
to the interests of your country.
The impressive increases in payroll savings participation which
have been achieved under your leadership and guidance in just the
past nine months are a source of real inspiration. And with your
indulgence, I*d like to mention some of the results which your labors
have had in so short a time.
You know one of the most popular methods advertisers have for
bringing home the merits of their particular products is to show us
some »before and after" pictures. Well, I want to cite some "before
and after" facts that are mighty impressive evidence of mounting success
of your endeavors.
During the recent drive, General Motors in Michigan, one of our
largest industrial firms, added some 106,000 new savers to the program
for a grand total of 229,000 employees participating. Camegie-Illinois
of Pennsylvania jumped their participation from 19 percent to 77 percent,

S-2775

2

74

adding 59,000 new savers. Firestone, Goodrich, and National Tube out
in Ohio each show better than 80 percent participation today as compared
with a 20 to 30 percent participation before the drive. These three
companies alone have added 67,000 new Ohio savers. Out in California,
Columbia Steel and Consolidated Western Steel have increased their firms*
participation from less than 10 percen't to 85 percent with 1 1 ,5 0 0 new
savers. Nor have such solid accomplishments been limited to just the
largest of our industrial firms. Hotpoint out in Illinois has shown a
96 percent participation today as compared with 9 percent prior to the
drive, adding its contribution of better than 6,000 new savers. Newman
Cotton Mills down in Georgia now has i 93 percent participation.
Oklahoma, as well as California and Michigan have firms which jumped
from no plan at all previous to the drive to 100 percent participation.
The samples I have mentioned are but some of the many success
stories that are due to your efforts, and I only wish I had the time to
mention them all, but the honor roll is long as well as impressive.

But here in a nutshell is the result of your concerted efforts in the
past nine months* Since your drive began, around 5~l/2 thousand new
payroll savings installations have been made and some 650,000 new
savers in our various states have been added to the savings bond family.
Based on national averages, this group of new savers is alone invest­
ing approximately $13 million every month in United States Defense
Bonds. These totals exclude Federal employees for whom we have a
separate accounting.
The manner in which you people have taken hold of the payroll
savings program, have made it your own, and sold it to others, is
unfailing testimony to the worth of the product we have to sell
American thrift. Now that the need for your leadership is greater than
ever, I know that you will respond with even greater effort.
The defense effort is already beginning to take a bigger bite out
of our national product, and disposable personal income is at the
record annual rate of $220 billion. So I do not need to remind you of
what you, as businessmen and industrialists, already know — that pressure
of inflation could seriously cripple our defense effort.
In order to secure our military goals, it is necessary in the next
few years to engage in a tremendous industrial expansion program.
Once that program reaches its final stages, the productivity of our
economy will be high enough that we will be able to- maintain our
military forces, while at the same time increasing the volume of goods
and services available for consumers. In the meantime, however, the
expansion program is going to add to the inflationary forces set in
motion by expanded military expenditures. Higher taxes, credit restrictions,
and direct controls will do only part of the job of mopping up the
excess purchasing power that will be generated. W e are going to have
to rely on savings for a big part of the job. This is why it is. so
important that the defense bond drive this year be successful. And it
is a reason why w e ’ve got to keep expanding the Payroll Savings Plan,

- 3 -

In a period like this, when employment is high and incomes are
high, individuals are provided a golden opportunity for building up their
financial reserves. The smart people are going to seize this opportunity.
They know that inflationary conditions, with a lot of excessive money
floating around in relation to the amount of goods that can be bought,
are temporary, and they know that they can build up their financial
reserves more quickly and more easily now than ever before.
Everyone needs financial reserves to provide for emergencies, to
meet expenses such as the education of their children or the purchase of
a home or automobile, and to provide for a happier and more enjoyable
old age. Such a reserve should be invested in the safest possible way,
and an excellent investment for this purpose is United States defense
bonds.
We donft have to rely on my opinion or your opinion for the truth
of that statement. The success of our bond program since the end of
the war — despite the lack of a wartime patriotic motive and the
reduction in sales effort — is ample testimony that nearly all Americans
are convinced that it1s true. Today, individual Americans own $58
billion of savings bonds, $9 billion more than they owned at the end
of World War II. And I suppose, if yourd asked them why theyfve kept
on buying savings bonds, they!d tell you that they like the safety of
Government bonds. They like the idea of getting their money back
with interest at any time, which means that their bonds are a real
reserve for emergencies as well as a long-range investment,
I
mentioned the importance of building up a fund of working
capital to meet temporary emergencies and to take advantage of promising
opportunities. I suspect that every one of you here could tell me from
your own experience that at one time or another the successful outcome
of a project in which you have been interested has depended on just
such a reserve. You know, too, that such a fund cannot be accumulated
merely by wishful thinking. It depends on establishing a systematic
savings program. Just so, the average man should look to the future and
build up a personal reserve by putting aside something regularly from
current income. Every dollar that he puts aside now out of current
income will be waiting for a later opportunity to serve him.
The habit of thrift which we are selling in the Payroll Savings
Plan is a good thing in itself. We know there is no better way to
convince people of that fact than by.sitting down with them and show­
ing them some of the wonderful things that people have been able to do
with their savings. Since the end of the war, Americans have purchased
over 20 million new automobiles, 5 million homes, 20 million refrigerators
and other electrical equipment items, and a host of other things that
are the marks of better living.

The purchasing power that wartime savings put into the hands of the
people — $200 billion worth »» gave them the courage when the end of
the war came to go out and spend their current income, so that for
the first time in our history after a war we were able to keep our
economy on a very high level. The savings that people make at this time
are going to mean just as much in the future when we have solved this
defense problem, and I hope, the war threat.
A few weeks ago at a luncheon meeting of the Bond Club in Chicago,
I startled a number of people with the statement that the average per
capita income today, after adjustment for the increase in prices and
heavier taxes, will buy h O percent more than the average per capita
income in 1939. That evening, one of the bankers, who had attended the
luncheon, came up to me and said, "I doubted that figure. My statistical
staff worked all afternoon, and here it is ***■> ij.0.12 percent.11 I made
the same statement when I was in Rochester last month presenting a
Treasury Flag City award. Marion Folsom of Rochester wrote me a few
days ago that a lot of people up there had questioned the accuracy of
my statement. So he put his staff to work, and he wrote that nthey
came out with exactly the same figure you did.”
•

Now I see that the Economic Research Department of the Chamber of
Commerce has gotten around to checking up. In their August release,
they say that, when 1950 per capita income is deflated to reflect the
decreased purchasing power of the dollar, that it is still I4.5 percent
above what it was in 1939. But whichever figure you use -«* i;0%’ or
k 5 % »*" it is a dramatic illustration of the rising real income generated
by our free enterprise economy in a decade of capacity operation and
growth. This growth has greatly enlarged the market for the products
of American agriculture and industry -- and greatly enlarged, also
the possibilities for profitable business operations.
I hardly need to point out to you that the habit of thrift
carried on through good times and bad times through the history of .
the United States, has played a tremendous role in the development of
our Nation. The doctrine of "save and invest" has governed the growth
of our industrial system, and has insured the development of the vast
capacity of private industry, which today is the strongest barrier to
the communist aggression against the free world.
Since the end of World War II, American business has alone put
over $110 billion into new plant and equipment. I am very impressed
by the fact that this tremendous investment has not been just more of
the same, but represents a very substantial improvement in the tools
with which we produce. I don’t suppose that there is one of you who
hasn’t seen striking changes for the better in the operations of
your company. The additions to our capacity to produce have lifted
the standard of living of Americans to the highest level in the world.

77

Savings have made ours a dynamic economy and given us a better
land in which to live. The habit of saving and investing has made us
a Nation of farm and home owners* of insurance policy holders* of
savings account and security owners. It has enabled us to realize the
full benefit from the great resources of this country. And at every
turn these accomplishments are the direct result of free enterprise —
promoted by individual and collective savings.
In closing* I want again to express my pleasure in meeting with
you, and to thank you for coming down here to give us the advantage of
your knowledge and experience, I know you1re going to make this drive
a real success. It is something in which we* as individuals, can
believe and something of which we can measure the merits. I know
that through your efforts and those of our other volunteer leaders*
the results of the drive this fall will be highly gratifying.

0O0

m m m

m m m m m ,

Tuesday* August Ik , 19$1.
The Secretary of the Treasury announced la s t evening that the tenders Tor
or thereabout®, of 91-day Treasury b ills to be dated August 16 and to

$1,300,000,000,

m turs November
serve Banks cm

1951* which were offered on August 9* were opened a t the Federal Re­

August 13*

The d e ta ils of th is issue are as follows s
Total applied fo r - $2,079,693,000
Total accepted
- 1,300,3d$,GQQ
Average Price

(Includes $l*&,d&?,000 entered cm a
ncm-competitlve b asis and accepted in
f u ll at the average price shown below)

- 99*580/ Equivalent rate of discount approx. 1*660$ per annua

Hange of accepted competitive bidet

Hlgi
low

~ 99*637 Equivalent rate of discount approx* 1*1*36$ per annum
W
if
n
i?
- 99.577
b
1.6735 *
*

(1*5 percent of

the amount bid for art

tbe low priese was accepted)

Federal Reserve
D istrict

Total
Applied fo r

Total
Accepted

Boston
Hew York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St* Louis
ftffinreaffpnl1st
Kansas City
Hat?la©
San Francisco

i
16,796,000
« ¡ ■ ä ä o »

$

31»,788,000
52,995,000
13,915,000
20, 761», 000
182,621,000
21,707,000
7,015,000
61,605,000
33,836,000
g g 563,000

15,71»6,000
862,898,000
21,978,000
51,345,000
17,590,000
20,214,000
143,121,000
18,132,000
7,015,000
57,050,ooo
28,336,000
56,913,000

|2 ,079,693,000

*1,300,388,000

TOTAL

-11

l?A .[ i /.

release

morning

newspapers

,

S -2 7 7 6

Tuesday, August 14, 1951.

The Secretary of the Treasury announced last evening that the
tenders for $1,300,000,000, or thereabouts, of 91-day Treasury bil
to be dated August 16 and to mature November 15, 1951, which were
offered on August 9, were opened at the Federal Reserve Banks on
August 13.
The details of this issue are as follows:
Total applied for - $2,079,693,000
- 1 ,3 0 0 ,3 8 8 ,0 0 0 (includes $154,887,000
Total accepted
entered on a non-competitive
basis and accepted in full
at the average price shown
below)
- 9 9 .580 / Equivalent rate of discount approx.
Average Price
1 .660 $ per annum
Range of accepted competitive bids;

- 9 9 .6 3 7 E q u iv a le n t r a t e
1 .4 3 6 $
- 9 9 .5 7 7 E q u iv a le n t r a t e
1 .673$

High
Low

o f d is c o u n t a p p r o x .
p e r annum
o f d is c o u n t a p p r o x .
p e r annum

(45 percent of the amount bid for at the low price

Federal R e se rv e
D is t r ic t

was accepted)

Total
Applied for

Boston
New York
P h ila d e lp h ia

$

Cleveland

1 6 ,7 9 6 ,0 0 0
1,544,148,000
34.728.000
52.995.000

.

18 915.000

Richmond
A tlan ta
Chicago
S t . L o u is
M inneapolis
Kansas C ity
D allas
San F r a n c is c o

20.764.000

182,621,000
2 1 .7 0 7 .0 0 0
7,015,000

6 1 ,6 0 5 ,0 0 0
33,836,000

Total
Accepted
$

15,746,000

8 6 2 .8 9 8 .0 0 0
21,978,000
51.345.000
17.590.000
20.214.000
143.121.000
1 8 .1 8 2 .0 0 0

7 .015.000
57,050,000
2 8 ,3 3 6 ,0 0 0
56.913,000

TOTAL

$2,079,693,000

0O 0

$ 1 , 300 , 388,000

TREASURY DEPARTMENT
F is c a l Service

STATUTORY DEBT LIMITATION
AS OF

W ashin gton ,

JILT JL,,.1551

JsfcJklîS

Section 21 o f Second Liberty Bond Act, as amended, provides that the face amount o f o b iig a t io n s g issuéd
under au th o rity of that Act, and the face amount of o b lig a t io n s guaranteed as to prin cip al and interest by the
United sta te s (except such guaranteed o b lig a t io n s as may be held by the Secretary o f the Treasury), "shall not
exceed in the aggregate $275,000,000,000 (Act of June 26, 1946; U.S .C ., t i t l e 31 , sec. 757b|, outstanding at
any one time. For purposes o f t h is se ction the current redemption value o f any obi 1gat ion issued on a discount
b a sis which is redeemable p r io r to m aturity at the option o f the holder sh a ll be considered as i t s face amount.*
The follow ing ta b le shows the face amount o f o b lig a t io n s outstanding and the face*amount which can still
be issued under th is lim ita tio n :

$275,000, 000,000

Total face amount that may be outstanding at any one time
Outstanding
O b lig a tio n s issued under Second Liberty Bond Act, as amended

1n terest-beari ng:

Treasury b i l l s
...................
C e r t ific a t e s o f indebtedness........
Treasury notes .............................

Bonds T reasu ry
y * ^ S a v in g s (current redemp. value)
Depositary
............
Armed Forces Leave ....................
Investment s e r ie s ......................
Special Funds C e r t ific a t e s o f indebtedness
Treasury notes
...............
Total in te re st-b e arin g
Matured, interest-ceased

$l4,4l3,148,000
9 ,524 ,057,000
44,285,464,200$ 68 ,2 2 2 ,669,200
78,829,854,050
57,537,933.889
32 3 ,736,000
28 ,205,325
13.523,786,000 150 ,243 ,515,264
20,762,465,000
H.944.225.000

^4.706.690.000
2 53 .1 7 2 ,874,464
472 ,656,237

.........

Bearing no inte re st:
War sav in gs stamps .........................
Excess p r o f it s tax refund bond s......

47,480,215
2,321,706

Special notes o f the United sta te s:
In te r n a ta Monetary Fund series....
Total

1.283.000.000

...........................................

1.332.801

254.97S.332.62l

Guaranteed o b lig a t io n s (not held by Treasury):
In terest-bearin g:
Debentures: p Ch . a . ............................
Demand o b lig a tio n s: C .C .C ................. £___

26,433,686

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

26 ,453,686
1 .860 .01«?
28 ,313,736

Grand to ta l o u tsta n d in g ........ ........................ ..............................
Balance face amount of o b lig a tio n s issu ab le under above au th ority
Reconcilement with statement of the P ublic Debt
'D a ily Statement o f the United S tate s Treasury,
1

2»>s.oo6.646.36o
19l993l355lljig

* j i y 31, 1951
(Date)

Aag* 1,

,)

(Date)

Outstanding Total gro ss p u blic debt ......................................................................................
Guaranteed o b lig a tio n s not owned by the Treasury ..............................
Total gross p u b lic debt and guaranteed o b lig a t io n s ...........................................
Deduct - other outstanding pu blic debt o b lig a tio n s not subject to debt lim it a tio n

255,656,634,000
28,313J3§
255,684,947,73?
678,3plj g
255,006,64b ,3oO

STATUTORY DEBT LIMITATION
AS OF JULY 31, 1951

August 15, 1951

Section 21 of Second Liberty Bond Act, as amended, provides that the face amount
of obligations issued under authority of that Act, and the face amount of obliga*tions guaranteed as to principal and interest by the United States (except such
guaranteed obligations as may be held by the Secretary of the Treasury), "shall not
exceed in the aggregate $275*000,000,000 (Act of June 26, 19li6j 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 limitationi
$275*000,000,000
Total face amount that may be outstanding at any one time
Outstanding
Obligations issued under Second Liberty Bond Act, as amended
Interest-bearing;
Treasury bills........,. f.... $ 111*1113*1118 ,000
Certificates of indebtedness...
9,5211,057*000
Treasury notes.....Iili,285,li6[i,200 $68*222,669,200
Bonds Treasury,«
•
.
78*829,85li*050
Savings (current redemp.value) 57,537,933,889
Depositary................ •
323,736,000
Armed Forces L e a v e . ,
28,205,325
Investment series............ 13,523,786,000 150 ,2)43 ,5l5>26ii
Special Funds Certificates of indebtedness. 20,762,ii65,000
Treasury notes......
I3,9lili,225,OOQ 3h,706,690,000
Total interest-bearing.....,....... 253,172,87 )4,W>li
U72,656,237
Matured, interest-ceased.......
Bearing no interest:
War savings stamps...............
Ii7,h80,2l5
Excess profits tax refund bonds ,
2,321,708
Special notes of the United States:
Internal* 1 Monetary Fund series
1,283,000,000
1,332,801,923
Total...... .................................... z W X W . H t o ' m
Guaranteed obligations (not held by Treasury):
Interest-bearing:
Debentures: F.H.A.............
26,l;53,686
Demand obligations: C.C.C. ......
Matured, interest-ceased,

26,ii53,686
1,860,050
28,313,736
| Grand total outstanding......................
255,006,6);6,360
Balance face amount of obligations issuable under above authority.., 19 ,993 >3 3 3 ,6liO
I

Reconcilement with Statement of the Public Debt - July 31, 1951
(Daily Statement of the United States Treasury, August 1, 1951)

Outstanding Total gross public d
e
b
t
.
.... 255*656,63 I1*000
Guaranteed obligations not owned by the Treasury .................
28* 313,736
Total gross public debt and guaranteed obligations.#,,**........... 255*68li,9li7*738
Deduct - other outstanding public debt obligations not subject to
debt limitation........
»;.......... ...... .
" 678,301,376

L

'255,'tes

èïSDSo

Augiat 6, 1951

TO MR« B A » m f t

Th« follcwing transactioas w w tcad* ln direet and guaraaiteed
secu riti«a ©f tho Goroimant fo r Treasury inveateent and oth*r
a c c o lta dtarlng th« «©nth of July, 1951s
Furctiasea » « « # * • • * * * • • •

*$5f®^9#000

Sal«a • • • • # * • • • « * • * • • »
lift pUjpfihä ^ a ' * ' • *

^ * * * • *^

*700
230^300

(SgdO I . 0 . B&TU9S
Ghief, Division of Investments

Wisocarver

8/6/51

T R E A S U R Y DEPARTMENT
Information Service

WASHINGTON, D .C

RELEASE MORNING NEWSPAPERS,
M o n d a y , Jtti y 16, 1 9 5 ^ «
/</“ ' J s /

1

«J **

\/ul/
D u r i n g the m o n t h of 3ufle 1951*
market

transactions

in d i r e c t a nd

guaranteed, s e c u rities

of the

G o v e r n m e n t for T r e a s u r y i n v e s t m e n t
an d o t h e r a c c o u n t s r e s u l t e d in net
purchases

of ■£ffi^E9 4 }7-00; S e c r e t a r y

S n y d e r a n n o u n c e d today.

0O0

TREASU RY

DEPARTMENT

Information Service

WASHINGTON, D .C .

R E L E A S E M O R N I N G N EWSPAPERS,
W e d n e s d a y , A u g u s t 15* 1951»

D u r i n g the m o n t h of J uly 1951*
market

84

transactions

in d i r e c t and

g u a r a n t e e d s ecurities

of the

G o v e r n m e n t for T r e a s u r y i n v e s t m e n t
an d o t her a c c o u n t s r e s u l t e d in net
purchases

of $236,300*

Snyder announced

today.

0O0

Secretary

S

-2778

The withholding provisions of the Vermont income tax, which
became effective July 1, 195>1, have raised the question of whether
Federal agencies will cooperate with the State governments by
withholding State income taxes from salaries of Federal employees.
Federal agencies hav'e indicated that under the law they lack
authority to withhold the Vermont income tax from the salaries of
their employees.
It is the policy of the Tronrrupy Department to cooperate with
the States in the administration of their tax laws to the fullest
extent practicable.

To further this objective, legislation is

required authorizing Federal agencies to withhold State income
taxes.

The appropriate form of such legislation is now under

consideration
Federal withholding of State income taxes, in those instances
in which the States employ this method of collection, will consti­
tute a logical development in Federal-State fiscal cooperation.

For

a number of years, the Federal Government has been furnishing State
and local governments imposing income taxes with copies of the
Federal withholding receipt (Form W-2) indicating the amount of
compensation received by Federal employees.

At present only the

States of Oregon and Vermont have general withholding provisions.
State and local governments are cooperating generously in

TREA SU RY DEPARTMENT

IMMEDIATE RELEASE,
Monday, A u g u s t 13,

1951»

S-27 7 9

The w i t h h o l d i n g p r o v i s i o n s of the V e r m o n t income tax, w h i c h
became e f f e c t i v e J u l y 1, 1951* h a v e r a i s e d the q u e s t i o n of
whether F e d e r a l a g e n c i e s w i l l coo p e r a t e w i t h the State g o v e r n ­
ments b y w i t h h o l d i n g State income taxes f r o m salaries of F e d e r a l
employees.
F e d e r a l a g e n c i e s h a v e i n d i c a t e d that u n d e r the law
they l a c k a u t h o r i t y to w i t h h o l d the V e r m o n t income tax fro m the
salaries of their employees.
It is the p o l i c y of the F e d e r a l G o v e r n m e n t to c o o p erate
with the States in the a d m i n i s t r a t i o n of their tax laws to the
fullest e x tent p r a c t i c a b l e .
To f u r t h e r this o b j e ctive, l e g i s ­
lation is r e q u i r e d a u t h o r i z i n g F e d e r a l a g e n c i e s to w i t h h o l d ’
State income taxes.
The a p p r o p r i a t e f o r m of s uch l e g i s l a t i o n is
now u n der c o n s i d e r a t i o n w i t h a v i e w to a r e q u e s t for e a r l y
Congressional action.
F e d e r a l w i t h h o l d i n g of State income taxes, in those
instances in w h i c h the States e m p l o y this m e t h o d of collection,
will con s t i t u t e a lo g i c a l d e v e l o p m e n t in F e d e r a l - S t a t e f i scal
cooperation.
F o r a n u m b e r of years, the F e d e r a l G o v e r n m e n t h a s
been f u r n i s h i n g State and local g o v e r n m e n t s i m p o s i n g income
taxes w i t h copies of the F e d e r a l w i t h h o l d i n g r e c e i p t (Form ¥-2)
indicating the a m o u n t of c o m p e n s a t i o n r e c e i v e d b y F e d e r a l
employees.
At p r e s e n t o nly the States of O r e g o n an d V e r m o n t
have g e n eral w i t h h o l d i n g p r o v i sions.
State and local g o v e r n m e n t s are c o o p e r a t i n g g e n e r o u s l y in
the a d m i n i s t r a t i o n of F e d e r a l taxes, a nd the T r e a s u r y s t r o n g l y
supports F e d e r a l c o o p e r a t i o n w i t h the States in this matter.

oOo

TWO AND ONE-QUARTER PERCENT TREASURY BONDS OF 1951-53
(DATED DECEMBER 22, 1939)
NOTICE OF CALL FOR REDEMPTION
To Holders of 2-l/U percent Treasury Bonds of 1951-53 (dated
December 22, 1939), and Others Concerned:
1, Public notice Is hereby given that all outstanding 2-l/li per­
cent Treasury Bonds of 1951-53, dated December 22, 1939, due December
15, 1953, are hereby called for redemption on December 15, 1951, on
which date interest on such bonds will cease,
2, Holders of these bonds may, in advance of the redemption
date, be offered the privilege of exchanging all or any part of their
called bonds for other interest-bearing obligations of the United
States, in which event public notice will hereafter be given and an
official circular governing the exchange offering will be issued.
3, Full information regarding the presentation and surrender
of the bonds for cash redemption under this call will be found in
Department Circular No. 666, dated July 21, 19Ul.

John W. Snyder,
Secretary of the Treasury.

TREASURY DEPARTMENT,
Washington, August

lit, 1951»

TREASURY DEPARTMENT
Information

Service

WASHINGTON, D .C

SSJL. *

La ü M B i # | | i l »

V
iV

%m * M m

X£^i tilX $%iswsk

■

HELE■'^bàlB&kffî$(XÎMWm^PVÊ^Ê^bBotwonas ipumanT &d& lo
®rft
Tufts^ay, August 14, 19 51.
r, ds 3 -2 7 8 0
''®rb
lo ahnofl i;tô©s^ Î imnon&q 4\I*
W t ait’
SÇü

standi

due

1 //•■ p e-rcent
reasury Y
B ouin4d
.of *
I 95
. md a
t e d jjecemOfeLr
D e c e m b e r 22
- a.x,■ Tinitiouj/i
'ise,.yi
'-rjIjL--z53
> ")j
a-oeu
sbe b v s W 0 0 S 1$, . ,
,
®*x»ffT

Deeemb er 15,

1951.

T h ere are n o v o u t s t a n d i n g $ 1 , 1 X 8 , 0 5 1 . 1 0 0 of

mldiMM&o onlB ®*ra ii&liir

¡
M
€
i
;
£
ie on D e c e m b e r 15, 1951*

ca,
on

t date,

s''osB

lo tkif
f
i
t
w
wil l not be called

no
for redemption

t stroXXol m s i I la o to a a lie n iBsrxot &rfJ t o * t o i Oiff

xt of the f o r m a l noti c e

TWO A N D O N E - Q U A R T ER

of call is as follows:

P E R C E N T T R E A S U R Y B O N D S OF 1951-5-,

N O T I C E OF C A L L FOR R E D E M P T I O N
to Holders o f 2-1/4 p e r c e n t T r e a s u r y B o n d s of 1 9 5 1-53
December
?, 1939), a nd Others Concerned:

2

1.

(dated

P u b l i c 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
2-,1/4 p e r c e n t T r e a s u r y B o nds of 1951-53, dated
December
, 1939, due D e c e m b e r
,
, are
h e r e b y called for r e d e m p t i o n on D e c e m b e r 15, 1951,
on w h i c h date in t e r e s t o n such bonds wild cease".

22

15 1953

c**

rIc.LG.ers of these bonds may, in advance 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 all or
a n y part of their c a l l e d bonds for e t h e r ' i n t 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 vhioh e v e n t public
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 and 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 ex c h a n g e o f f e r i n g w i l l be Issued.

3.

Full 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 and s u r r e n d e r
of the b o nds for cash r e d e m p t i o n under this call w i l l be
found in D e p a r t m e n t ^ C i r c u l a r N o ..
, d a t e d J u l y 21,1941.

666

treasury

department

Washington,

August

14,

1951.

p on : § j Snyder
Be 0to tp'rv o f the T re a s u r y .

RELEASE, HOMING NEWSPAPERS,
Tuesday, August lit, 1951»

3 1 f

The Secretary of the Treasury announced today that all outstanding
2-l/h

percent Treasury Bonds of 1951-53» dated December 22, 1939, due

December 15» 1953» ere called for redemption on December 15, 1951*

Tliere are now outstanding $1,118,051,100 of these bonds.
The 2 percent Treasury Bonds of 1951-55» which are also callable
on December 15, 1951» will not be called for redemption on that date.
The text of the formal notice of call is as follows»

RELEASE M O R N I N G N E W S PAPERS,
Tuesday, A u g u s t 14, 1951.

S-

278O

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 all o u t ­
standing 2-1/4 p e r c e n t T r e a s u r y B o n d s of 1951-53, d a t e d D e c e m b e r 22,
1939, due D e c e m b e r
, 1953, are called for r e d e m p t i o n on
December 15, 1951.
There are n o w o u t s t a n d i n g $ 1 , 1 1 8 , 0 5 1 , 1 0 0 of
these bonds.
'

15

The 2 p e r c e n t T r e a s u r y B o n d s of 1951-55, w h i c h are a lso
callable on D e c e m b e r 15, 3.951, w i l l n ot be called for r e d e m p t i o n
on that d a t e .
The text of the f o r m a l n o t i c e

of call is as follows:

TWO A N D O N E - Q U A R T E R P E R C E N T T R E A S U R Y B O N D S OF 1951-53
(D A T E D D E C E M B E R 22, 1939)
N O T I C E OF C A L L F O R R E D E M P T I O N
To Holders of 2-1/4 p e r c e n t T r e a s u r y B o nds of 1951-53
December 22, 1939), a nd O t hers Concerned:
1.

Public n o t i c e is h e r e b y g i v e n that a ll o u t s t a n d i n g
2-1/4 p e r c e n t T r e a s u r y B o n d s of 1951-53, d a t e d
December
, 1939, hue D e c e m b e r
,
, are
h e r e b y c a lled for r e d e m p t i o n on D e c e m b e r
,
,
on w h i c h date i n t e r e s t on such bonds w i l l ceased

22

2.

3.

(dated

15 1953

15 1951

H o l d e r s of these b o nds may, in ad 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 all or
£uiy part of their c a lled bonds for o t her i n t 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 e v e n t 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 and 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.
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 cash r e d e m p t i o n u n d e r this call w i l l be
f o und in D e p a r t m e n t C i r c u l a r No.
, d a t e d J u l y 21,1941.

666

TREASURY D E P A R T M E N T
Washington, A u g u s t

14,

1951.

J o h n W. Snyd e r
S e c r e t a r y of the Treasury.

- 3 V o l u n t e e r s a r e b e i n g o r g a n i z e d to c o n d u c t p e r s o n a l
s o l i c i t a t i o n of m i l l i o n s of p e r s o n s i n t h e c o u r s e of t h e
drive.

Women*s organizations have indicated that they

w i l l a c t i v e l y p r o m o t e the B o n d - a - M e m b e r plan, a l r e a d y b e i n g
featured widely.

Civic, f r a t e r n a l and veteran* groups are

m o b i l i z i n g to h e l p m a k e t h e d r i v e a s u c c e s s .
S e c r e t a r y S n y d e r s a i d t h a t a w a r d of T r e a s u r y f l a g s
to c i t i e s miml mrniriti r n f o r s p e c i a l a c t i v i t y a n d s p e c i a l
s u c c e s s in p r o m o t i n g t h e P a y r o l l S a v i n g s P l a n w o u l d b e
c o n t i n u e d as a f e a t u r e of the d r i v e .

A l s o , as a s a l e s

incentive, c o u n t y c h a i r m e n in their d i s c r e t i o n m a y e s t a b l i s h
s p e c i f i c s a l e s g o a l s t o be a c h i e v e d i n t h e i r o w n t e r r i t o r y .

2

The principal purposes

of

will be

to encourage continued practice of thrift and savings
-

^ ,T

on the part of every individual; to discourage ms&ise
spending £ ttes^gfeliswing rntfiationagy-pgeaouros; and
to maintain and increase the wide distribution of the
public debt.
The thousands of volunteers expected to participate
in the Drive will seek to enroll more wage and salary
earners on the Payroll Savings Plan, and will encourage
farmers, professional groups, the self-employed, and
all other segments of the population to maintain
continuous, planned savings.
To achieve these aims and objectives, every county
chairman and his volunteer groups are being asked to
stress the advantages of the Payroll Savings Plan in
every industry in their territory.

Similar efforts

will be made to increase participation in the Bond-AMonth Plan, under which bond buyers authorize their
banks to make periodic purchases of bonds from their
checking accounts.
The county chairmen will urge agricultural volunteers
to conduct a vigorous sales effort among the farmers of
each community.

Secretary Snyder today invitedA 154,000,000
Americans

to become

partners in the Defense Bond Drive.

The Secretary

revealed detailed plans for the Drive, which starts
Labor Day, September 3.

TheV>urpose o^f the campaign is to^timulafS^s^
purchase otL Series

and GS^ijnds fron^^irrent

income.
The Drive will run from Labor Day through
October 27.

For accounting purposes, all Defense

Bonds sales reported by November 13 will be counted
for the campaign period, this arrangement being made
to cover the time lag in the transmission of reports.
Secretary Snyder said there would not be a
national dollar quota for the Drive.

TREASURY DEPARTMENT
Information Service

WASHINGTON, D .C .

94
IMMEDIATE R E L E A S E
Tuesday, A u g u s t 14.

1951.

,

S-27 8 1

S e c r e t a r y S n y d e r t o d a y i n v i t e d the 1 5 4 , 0 0 0 , 0 0 0 A m e r i c a n s
to become p a r t n e r s in the D e f e n s e B o n d Drive,
The S e c r e t a r y
revealed d e t a i l e d plans for the Drive, w h i c h starts L a bor
Day, S e p t e m b e r
.

3

27

The D r i v e w i l l r un f r o m L a b o r D a y t h r o u g h O c t o b e r
.
acc o u n t i n g purposes, a ll D e f e n s e B o n d s -sales r e p o r t e d b y
November 13 w i l l be c o u nted for the campaign, period, this
a rrangement b e i n g m a d e to c o v e r the time lag in the
trans m i s s i o n of reports.

For

S e c r e t a r y S n y d e r said there w o u l d not be a n a t i o n a l d o l l a r
quota f or the Drive.
The D r i v e w i l l d i r e c t l y a i d f i n a n c i a l p r e p a r e d n e s s for
defense," S e c r e t a r y S n y d e r said.
"And it offers a n a n s w e r to
the q u e s t i o n so m a n y p e o p l e h a v e b e e n asking, »What ca n I do to
help in this e m e r g e n c y ?
I w a n t m y c o u n t r y to survive.
I want
it to take p a r t in p r o m o t i n g the p e ace and p r o s p e r i t y of the
world.
B ut w h a t c an I, as a n i n d i v i d u a l do?»
The a n s w e r is
that e v e r y i n d i v i d u a l c an start h is o w n thrift program, an d the
period of the D e f e n s e B o n d D r i v e is a n e x c e l l e n t time to b e g i n
such p r o g r a m s -- p a r t i c u l a r l y f o r those w ho h a v e n » t a l r e a d y
started one."
The p r i n c i p a l p u r p o s e s of the D e f e n s e B o n d D r i v e w i l l be to
encourage c o n t i n u e d p r a c t i c e of t h rift and savings on the part
of e v e r y individual; to d i s c o u r a g e i n f l a t i o n a r y spending; a nd
to m a i n t a i n a nd in c r e a s e the wide d i s t r i b u t i o n of the p u b l i c debt.
The tho u s a n d s of v o l u n t e e r s e x p e c t e d to p a r t i c i p a t e in the Drive w i l l s e e k to e n r o l l m o r e w age and s a l a r y e a r ners on the
Payroll Savings Plan, and w i l l e n c o u r a g e farmers, p r o f e s s i o n a l
groups, the self-employed, a nd a ll o t h e r segments of the
population to m a i n t a i n continuous, p l a n n e d savings.
To a c h i e v e these aims and objectives, e v e r y c o u n t y c h a i r m a n
and his v o l u n t e e r groups are b e i n g a s k e d to stress the a d v a n t a g e s
ot the P a y r o l l Savings P l a n in e v e r y i n d u s t r y in t h e i r territory.
Similar e f f orts w i l l be m a d e to i n c r e a s e p a r t i c i p a t i o n in the

2

95

B o n d - A - M o n t h Plan, u n d e r w h i c h b o n d buyers a u t h o r i z e t h eir banks
to m a k e p e r i o d i c p u r c h a s e s of bonds f r o m t h eir c h e c k i n g
accounts.
The c o u n t y c h a i r m e n w i l l urge a g r i c u l t u r a l v o l u n t e e r s to
conduct a v i g o r o u s sales e f f o r t a m o n g the farmers of e a c h
community.
V o l u n t e e r s are b e i n g o r g a n i z e d to co n d u c t p e r s o n a l
s olicitation of m i l l i o n s of p e r s o n s in the course of the d r i v e .
Women's o r g a n i z a t i o n s hav e i n d i c a t e d that the y w i l l a c t i v e l y
promote the B o n d - a - M e m b e r plan, a l r e a d y b e i n g f e a t u r e d widely.
Civic, f r a t e r n a l a nd v e t e r a n groups are m o b i l i z i n g to h e l p m a k e
the drive a .success.
S e c r e t a r y S n y d e r said t h a t a w a r d of T r e a s u r y flags to cities
for special a c t i v i t y a nd s p e c i a l success in p r o m o t i n g the P a y r o l l
Savings P l a n w o u l d be c o n t i n u e d as a feature of the drive.
Also,
as a sales incentive, c o u n t y c h a i r m e n in t h e i r d i s c r e t i o n m a y
establish specific sales goals to be a c h i e v e d in their o w n
territory.

0O0

A-

Secretary Snyder today announced an amendment of the Poreign
Assets Control Regulations to close avenues of evasion vltfcife h w
v0SSSSaS9m
which goods originating in China
;he current
(except Pormosa^ might enter the United States despite the
current
bar against their importation,
^rc***u*t
The regulations, “which were issued on December 17,
hibited the unlicensed importation into the United States of goods
in which nationals of Communist China have had any interest since
that date. One purpose of the prohibition has been to deprive the
Chinese Communists of needed foreign exchange which they could other­
wise earn through the sale of goods to the United States either
directly or indirectly. In order to make this prohibition effective,
collectors of customs were directed not to allow customs entries and
other types of transactions with regard to goods of Chinese origin.
To avoid this regulation, goods of Chinese origin have been exported
to other countries for processing prior to shipment to the United
States. By this maneuver the f,countr^ of origin11 af some of the goods
has technically been changed.
The new regulation, in effect, states that processing in other
countries of goods originating in China does not change the Mcountry
of origin* for the purposes of the Poreign Assets Control Regulations
and, accordingly, these goods, even though processed outside of China,
will not be admitted by Customs.
Among the types of goods which will be affected by the new
regulation are Chinese fur skins and straw braid, which normally
have been imported directly into the United States but which have
recently been exports^- to other countries to be dressed and dyed
before shipment to this country. The new regulation, which applies to
mail shipments as well as to other types of importations, will also
put an end to the importation of handkerchiefs to which Chinese
embroideries have been appliqued outside of China.
The new amendment f&ffscts goods of Rbrth Korean origin equally
with Chinese goods.

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 a n a m e n d m e n t of the F o r e i g n
Assets C o n trol R e g u l a t i o n s to close a v e n u e s of e v a s i o n th r o u g h
which goods o r i g i n a t i n g in China (except Fo r m o s a ) m i g h t e n t e r the
United States de s p i t e the c u rrent bar a g a i n s t t h eir importation.
Such e v a s i o n a v e nues h ave r e c e n t l y b e g u n to appear.

1950

The regu l a t i o n s , w h i c h were issued on D e c e m b e r 17,
,
prohibited the u n l i c e n s e d i m p o r t a t i o n into the U n i t e d S t a t e s ' o f
goods in w h i c h n a t i o n a l s of C o m m u n i s t China h ave h a d a n y i n t erest
since that date.
One pu r p o s e of the p r o h i b i t i o n has b e e n to
deprive the Chinese C o m m u n i s t s of n e e d e d f o r e i g n e x c h a n g e w h i c h
they could oth e r w i s e e a r n th r o u g h the sale of goods to the
United States e i t h e r d i r e c t l y or indirectly.
I n o r der to m ake
this p r o h i b i t i o n effective, col l e c t o r s of customs wer e d i r e c t e d
not to a l l o w customs e n t ries and other types of t r a n s a c t i o n s w i t h
regard to goods of Chinese origin.
To a v o i d this regulation,
goods of C h inese o r i g i n have b e e n e x p o r t e d to o t h e r countries for
processing p r i o r to shipment to the U n i t e d States.
B y this
maneuver the " c o u n t r y of origin" of some of the goods has
technically b e e n changed.
The n e w regulation, in effect, states that p r o c e s s i n g in other
countries of goods o r i g i n a t i n g in China does not change the
country of origin" for the p u r p o s e s of the F o r e i g n A s s e t s C o n t r o l
Regulations and, a c c o r dingly, these goods, e v e n t h o u g h p r o c e s s e d
outside of China, w i l l not be a d m i t t e d by Customs.
A m o n g the types of goods w h i c h w i l l be a f f e c t e d b y the n e w
regulation are Chinese fur skins and s t raw braid, w h i c h n o r m a l l y
have been i m p o r t e d d i r e c t l y into the U n i t e d States but w h i c h h a v e
recently b e e n e x p o r t e d to other countries to be d r e s s e d and dyed
before shipment to this country.
The n e w regulation, w h i c h
applies to m a i l shipments as w e l l as to o t her types of importations,
^ill also put a n end to the i m p o r t a t i o n of h a n d k e r c h i e f s to w h i c h
Chinese e m b r o i d e r i e s h a v e b e e n a p p l i q u e d outside of China.
The n e w a m e n d m e n t af f e c t s
equally w i t h Chinese goods.

goods of N o r t h K o r e a n o r i g i n

0O0

2

The Grand Rapids United Labor Day Celebration
Committee, made up of local Labor officials, is
completing plans for the September 3 ceremonies.

The

all-day program will open in the morning with a 3-hour
parade, in which each of t h e ^ D o p a r t » o » t ^ o f «“O c f
will participate.

c u jis i

frjic e ?

A military exhibit will feature an

afternoon Labor picnic.

The Defense Bond Drive

inaugural will take place in the evening.

The inaugural

will feature a "Power for Peace" military spectacle,
and this will be followed by a nation-wide radio program
in which President Truman and Secretary Snyder will
participate.

0O0

top Labor leaders that their organizations will cooperate
fully in the forthcoming Defense Bond Drive, which opens
Labor Day, September 3, in Grand Rapids, Michigan.
President William Green of the American Federation
of Labor has written to*the Secretary:
”1 again urge every member of the American
Federation of Labor to avail himself of the
opportunity that is his to make an investment
in his personal future security, while at the
same time supporting our nation in its defense
effort^through the regular purchase of United
States Defense Bonds.
'*1 wish again to assure the Treasury De­
partment that it has the wholehearted support of
the American Federation of Labor in promoting
the sale of United States Defense Bonds.”
President Philip Murray of the Congress of Industrial
Organizations wrote:
”It is indeed gratifying to learn that
Labor Day has been designated by the Treasury
Department for launching of the Defense Bond
Drive. You may be sure that the Congress of
Industrial Organizations will continue to
support the Savings Bonds program in the future
as in the past, and urge our members to continue
the purchase of Savings Bonds for our countryYs
future and their own.”
A letter to the Secretary from George E. Leighty,
Chairman of the Railway Labor Executives* Association
said:
”We must make certain that America*s
tremendous productive power is utilized to the
fullest possible extent, and we must buy more
Defense Bonds to stabilize the economy during
this period of expanding military production.
”1 urge every railroad worker to increase
his participation in the Payroll Savings Plan
for the purchase of United States Defense Bonds.”

T R E A S U R Y DEPARTMENT
Information Service

WASHINGTON, D .C .

100
R E L EASE M O R N I N G NEWSPAPERS,
Friday, A u g u s t 17, 1951.

S

-2783

S e c r e t a r y S n y d e r has r e c e i v e d the a s s u r a n c e s of top L a b o r
leaders that their o r g a n i z a t i o n s w i l l coo p e r a t e f u l l y in the
fort h c o m i n g D e f e n s e B o n d Drive, w h i c h opens L a b o r Day,
September 3, in G r and Rapids, Michigan.
P r e s i d e n t W i l l i a m G r e e n of the A m e r i c a n F e d e r a t i o n of L a b o r
has w r i t t e n to the Secretary:
MI a g a i n urge e v e r y m e m b e r of the A m e r i c a n
F e d e r a t i o n of L a b o r to a v a i l h i m s e l f of the
o p p o r t u n i t y that is his to m a k e a n i n v e s t m e n t in
h i s p e r s o n a l future security, w h ile at the same
time s u p p o r t i n g our n a t i o n in its d e f e n s e effort,
th r o u g h the r e g u l a r p u r c h a s e of U n i t e d States
Defense B o n d s .
"I v i s h a g a i n to a s s u r e the T r e a s u r y
D e p a r t m e n t that it h as the w h o l e h e a r t e d support
of the A m e r i c a n F e d e r a t i o n of L a b o r in p r o m o t i n g
the sale of U n i t e d States D e f e n s e B o n d s . ”
P r e s i d e n t P h i l i p M u r r a y of the Co n g r e s s
Organizations wrote:

of I n d u s t r i a l

"It is inde e d g r a t i f y i n g to l e a r n that L a b o r
D a y has b e e n d e s i g n a t e d b y the T r e a s u r y D e p a r t m e n t
for l a u n c h i n g of the D e f e n s e B o n d D r i v e . Y o u m a y
be sure that the Co n g r e s s of I n d u s t r i a l O r g a n i z a t i o n s
w i l l continue to support the Savings B o n d s p r o g r a m
in the future as in the past, a n d * u r g e our m e m b e r s
to c o n tinue the p u r c h a s e of Savings B o n d s for our
c o u n t r y ’s future a nd t h eir own."
A letter to the S e c r e t a r y f r o m George E. Leighty,
of the R a i l w a y L a b o r E x e c u t i v e s ’ A s s o c i a t i o n said:

Chairman

"We m u s t m a k e c e r t a i n that A m e r i c a ’s t r e m e n d o u s
p r o d u c t i v e p o w e r is u t i l i z e d to the f u l l e s t po s s i b l e
extent, a nd we m u s t b u y m o r e D e f e n s e B o n d s to
stabilize the e c o n o m y d u r i n g this p e r i o d of e x p a n d i n g
m i l i t a r y p roduction.

2
"I urge e v e r y r a i l r o a d w o r k e r to increase
his p a r t i c i p a t i o n in the P a y r o l l Savings P lan
for the p u r c h a s e of U n i t e d States D e f e n s e Bonds."
The Grand R a p i d s U n i t e d L a b o r D a y C e l e b r a t i o n Committee,
made up of local L a b o r officials, is c o m p l e t i n g p l ans for the
September 3 c eremonies i The a l l - d a y p r o g r a m w i l l o p e n in the
m o r n i n g w i t h a 3-bo u r parade, in w h i c h e a c h of the a r m e d
services w i l l p a r t i c i p a t e .
A m i l i t a r y e x h i b i t w i l l f e ature a n
aft e r n o o n L a b o r picnic.
The D e f e n s e B o n d D r i v e i n a u g u r a l w i l l
take place in the evening.
The i n a u g u r a l w i l l feature a
’’Power for Peace" m i l i t a r y spectacle, an d this w i l l be f o l l o w e d
by a n a t i o n - w i d e r a dio p r o g r a m in w h i c h P r e s i d e n t T r u m a n and
Secretary S n yder w i l l p a r t i c i p a t e .

0O0

a■

ft'

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.

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 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 tho:
average price (in three decimals) of accepted competitive bids.

Settlement for

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

August 23s

1951

, in cash or other immediately avail!

Six

able funds or in a like face amount of Treasury bills maturing August 2
Cash and exchange tenders will receive equal treatment.

Cash adjustments will bf

made for differences between the par value of maturing bills accepted in exchangj
and the issue price of the new bills.
The income derived from Treasury bills, whether interest or gain from the
sale or other disposition of the bills, shall not have any exemption, as such, 1
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, whother Federal or State, but shall be exempt from

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

m
y

inzmit
TREASURY DEPARTMENT
Washington

FOR RELEASE, MORNING NEWSPAPERS,
Thursday, August 16, 1951_____ •
**S
The Secretary of the Treasury, by this public notice, invites tenders for
$ 1.100.000.000 ì or thereabouts, of
92 -day Treasury bills, for cash and
—
m
in exchange for Treasury bills maturing
August^jFjt. 1951
> to be issued on
a discount basis under competitive and non-competitive bidding as hereinafter
provided.

The bills of this series Will be dated

will mature

November 23, 1951
--------- .....................'■ *—
They m i l be issued in bearer form only, and in denominations of

interest.

August 23. 19Si
» and
jg*
, when the face amount rail be payable without

$1,000, $£,000, $10,000, $100,000, $$00,000, and $1,000,000 (maturity value).
Tenders vri.ll be received at Federal Reserve Banks and Branches up to the

Daylight Saving
closing hour, two o ’clock p.m*, Eastern/&fcxxstauo4 time, Monday, August 20. 1951»

xSSt

Tenders will not be received at the Treasury Department, Washington.

Each tender

must be for an even multiple of $1,000, and in the case of competitive tenders
the price offered must be expressed on the basis of 100, with not more than three
decimals, e. g., 99.925»

Fractions may not be used.

It is urged that tenders

be made on the printed forms and forwarded in the special envelopes which .will
be supplied by Federal Reserve Banks or Branches on application therefor.
Others than banking institutions will not be permitted to submit tenders
except for their own account.

Tenders will be received without deposit from

incorporated banks and trust companies and from responsible and recognized
dealers in investment securities.

Tenders frcm others must be accompanied

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

04

T R E A S U R Y DEPARTMENT
Information Service

WASHINGTON, D .C .

REIJ5ASE M O R N I N G NEWSPAPERS,
Thursday, A u g u s t 16, I
.

951

¡5-2784

The S e c r e t a r y of the Treasury, h y this p u b l i c notice, invites
tenders for $1,100 , 0 0 0 , 0 0 0 , or thereabouts, of 9 2 - d a y T r e a s u r y
bills, for cash an d in e x c h a n g e f o r T r e a s u r y bills m a t u r i n g
August 23, 1951, to be issued o n a d i s c o u n t basis u n d e r comp e t i t i v e
and non - c o m p e t i t i v e b i d d i n g as h e r e i n a f t e r provided-.
The bills of
this series w i l l be d a t e d A u g u s t
,
, and w i l l m a t u r e
November 23, 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.
T h e y w i l l be i s s u e d in b e a r e r f orm only, a n d in
denominations of $1,000, $5,000, $10,000, $100,000, $ 5 0 0 , 0 d 0 f a n d
$1,000,000 (ma t u r i t y value)..
. v -

23 1951

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 a n d B r a n c h e s
up to the c l o s i n g h o u r 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 u g u s t 20, 1951,
T e n d e r s w i l l no t be r e c e i v e d at the
Treasury Department, W ashington.
E a c h t e n d e r m u s t . b e for a n e v e n
multiple of $1,000, and in the case of c o m p e t i t i v e tenders the'price
offered must be e x p r e s s e d on the basis of 100, w i t h n ot m o r e tha n
three decimals, e..g., 99.925." F r a c t i o n s m a y po t be used.
It is
urged that tenders be m a d e o n jthe p r i n t e d forms a nd f o r w a r d e d in *
the special e n v e l o p e s w h i c h w i l l be sup p l i e d b y F e d e r a l Re 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 t h e r e f o r .;
tOthers .t h a n b a n k i n g i n s t i t u t i o n s will; not. be p e r m i t t e d to
submit tenders except for their own account.
T e nders 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 banks an d trust c o m panies
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 - i n i n v e s t m e n t securities,
renders 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
he face^amout 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 e x p r e s s g u a r a n t y of payment- by an i n c o r p o r a t e d
oank,or trust company,. ! '
,,
Immediately a f t e r the closing^hour, tenders w i l l be o p e n e d at
mae Federal R e s e r v e B a n k s and Branches, f o l l o w i n g w h i c h publ i c
announcement w i l l be mad e by the S e c r e t a r y of the T r e a s u r y of the
amount and price range of a c c e p t e d bids.
Those s u b m i t t i n g tenders
w i n be a d v ised of the a c c e p t a n c e or r e j e c t i o n thereof.
The
^ecretary of the T r e a s u r y e x p r e s s l y r e s erves the r i ght to a c c e p t or
? n y ov a11 t e n d ers, in w h o l e or in part, a nd h is a c t i o n in
nrm
JesP e c ^ shall be final.
S u b j e c t to these r e s e r v ations,
f Z F 0mpetitlve tenders for $ 2 0 0 , 0 0 0 or loss w i t h o u t s t a t e d price
m any one b i d d e r w i l l he a c c e p t e d I n f u l l at the a v e r a g e price

2
Tin 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 ids 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 u g u s t 23, 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 i n a like face a m o u n t of
T r e a s u r y b i lls m a t u r i n g A u g u s t 23, 1951«
Cas h a nd ex 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 . f o r
d i f f e r e n c e s b e t w e e n the p a r value of m a t u r i n g bills a c c e p t e d in
e x c h a n g e a nd 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 interest, or
g a i n f r o m the sale or o t her d i s p o s i t i o n of the bills, shall not
h a v e a n y exemption, as such, and loss 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 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 lls s h all be subject to estate,
inheritance, gift or other e x cise taxes, w h e t h e r F e d e r a l or State,
but shall be exempt f r o m a ll t a x a t i o n n o w or h e r e a f t e r imposed on
the p r i n c i p a l or i n t erest 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 Treasury _
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 considered
to be''- interest.
U n d e r S e c tions 42 and 117 (a) (l) of ;the Internal
R e v e n u e Code, as a m e n d e d b y S e c t i o n 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 solh
s h all n o t be c o n s i d e r e d to accrue u n t i l such bills shall be sola,
r e d e e m e d or oth e r w i s e d i s p o s e d of, and such bills are excluded, from
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 owner of Treasury
bills (other t h a n life insurance c o m p a n i e s ) issued h e r e u n d e r need
include in h is income tax r e t u r n o n l y the d i f f e r e n c e b e t w e e n the
p r ice p a i d f o r 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 n d - t h e 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 upon
sale or r e d e m p t i o n at m a t u r i t y d u r i n g the taxable y e a r for 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. 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 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 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

FOR IMMEDIATE RELEASE

August 3 ^ 19£l_____
The Bureau of Customs announced today that the 195>1 quota on
crude petroleum, topped crude petroleum, and fuel o il derived from
petroleum including fuel o il known as gas o il, the produce or manu­
facture of the Kingdom of the Netherlands (including it s overseas
te rrito rie s) was fille d on March 16, 195>1.
Announcement w ill soon be made as to the dates on which the
quota on petroleum and petroleum products for Venezuela and the
quota for “other foreign countries“ were fille d *

I M M E D I A T E RELEASE,
Friday, A u g u s t 17,

S -2 7 8 5

1951«

The B u r e a u of Customs a n n o u n c e d t o d a y that
the

19 51 q u o t a on crude p etroleum, topp e d crude

petroleum,

a nd fuel oil d e r i v e d f r o m p e t r o l e u m

i n c l u d i n g fuel oil k n o w n as gas oil,
or m a n u f a c t u r e

of the K i n g d o m of the N e t h e r l a n d s

( i n c l u d i n g its ov e r s e a s
on M a r c h 16,

the pr o d u c e

t e r r i t o r i e s ) was f i l l e d

1951.

A n n o u n c e m e n t w i l l s o o n he m a d e as to the
dates

on w h i c h the q u ota on p e t r o l e u m a nd

petroleum products

for V e n e z u e l a an d the q u o t a

for "other f o r e i g n c o u n t r i e s ” w e r e

0O0

filled.

of our
emergency

when the present
is over.

illltifI111!
For, despite the present
mil

worries and | problems
which beset
1 jf| ■
S

us, we must not forget that we must
constant Iy build for the future,
11 is in that perspective that
America has always advanced.

It

has been the desire and hope for a
better future that has given us as
individuals the courage and
fortitude to adjust to the

bought savings bonds in
place.

first

They bought them so that

they would have the money to use
for some future need, pleasure or
emergency.

For some people that

time, came after the outbreaK of
hostilities in Korea.- They had
been putting off buying an automob iI
or a refrigerator, or a washing
machine.

After Korea, some

remembered the shortages of the
last war and rushed to buy goods

TJM L

/

been

connection with the rush to purchase
consumer goods following the
outbreaK in Korea.

Actually,

the

total dollar value of *Ew bonds
■

in the hands of individuals has
remained practically unchanged.

I

thinn we should Keep in mind, too,
that such taIk of liquidation
over Io o k s the reasons why people

Consumer purchases
post w a r o e r i o d

in the a g g r e g a te

were mede out of c u r r e n t
The tote!

lit the

v o l u m e of

Income,

liquid asset

holdings ne■ver fell off —

it has

held steady1 a t § 1at ft I of around
$200 billiom,

The do 1 far amount of

savings, bonids outstanding has, in
fact, IFierisased by I t bill ion since
the end 0f i f f f i. War 11 fi naneing $4 bill ion in "E” bonds a ionle.
There has been c o n s i d e r a b l e

this Important objective, the
Treasury is going to inaugurate
on Labor Day, at Grand Raoids, 'Michigan;

of the Government.
to

It Is c e r t a i n

impair the ability of our

e c o n o m y to function with m a x i m u m
e f f e c t i v e n e s s d u r i n g this critical
period

in the life of our Nation.
■||gpi

A
itself,

b a l a n c e d b u dget will not by
however,

do the whole job

of a s s u r i n g the m a i n t e n a n c e of sound
economic c o n d i t i o n s
We need,

in the country.

In addition,

a broad

a n t i - i n f l a t l o n a r y p r o g r a m which will

eu

program

0

D e f e n s e c o s t s are% s c h e d u l ed to
increase to an annual

rate of

nearly $65 billion by the middle
■v / ' ::

of

1952 -- almost double the

present rate.

M e a s u r e d by costs

and d e m a n d s j u p o n

our economy,

is a vast program,

this

but with wise

♦

p o l icies we can support this
effort and at the same time keep
our economy sound and growing.

economic strength of individuai
American families give us
confidence that we can meet the
enlarged demands upon our economic
resources to provide the defense
needs which communist aggression
has forced upon us.

Already

we have accomplished notable
increases in production for
mobilization purposes while at
the same time maintaining
civilian production at h i g h levels.

r e s u l t s of

improved techniques,

of finer w o r Kmansh ip, of
superior materials,

of greater

empha s i s upon functional
styling.

These

improvements

are clearly evident

in the

p r o d u c t s of this c ity.
The e v i dences of the truly
:

remarKabIe

industr ia I a c h i e v e m e n t s

of this p e r i o d and the growing

m a n u f a c t u r e r s and fur
fabricators,
/1(11

the p r o d u c t s of

stove f o u n d r i es and eiectr icaI
e q u i p m e n t plants,

the

p r o c e s s i n g and p a c x a g i n g of
food products.

«*»

I0

m

in increasing volume during the
postwar period.
And.

in addition to being

able to buy more actual goods
and services than at any time
in the past, there is a notable
improvement in the quality of
t

the products which we buy and
the services at our command.
The growing and diversified

d

Sì

per capita consumption of eggs
anu poultry,

of fluid milk, and

fresò, canned, ana frozen vegetables.
It is evident in the growing
numbers of American families who
are able to afford automobiIe$.
'

refrigerators, radios and
television sets, washing machines
a no clothes, dryers, and a host

of other new consumer goods
which our industries have produced

of a higher education.

Enrollment

in institutions of higher

learning --

e x c l u s i v e of persons t a king advantage
of GI educational
<p p

.

t

■

benefits -.

is

up o n e - f o u r t h over prewar enrollment.
Our higher standard of
up

in the actual

living shows

quantity

figures

of the food we consume and the sales
records of the goods we buy.

it is

reflected

in the

one-fifth

in the c o n s u m p t i o n of

meat per person;

increase of almost

in the rise

in

I5a •
recreation and education.

Many

more persons each year are able,
because of their increased incomes,
to enjoy vacations hitherto only
dreamed of.

The records of the

National Park Service, for example,
show that the number of visitors to
all national park recreation areas
last year was more than double the
number who enjoyed these facilities
in 1939.

Today many more persons

are able to benefit by the advantages

14
Now

*

i see that the Unit e d States

C h a m b e r of Commerce,
release,

in an August

confi r m s this same

interesting fact.

Here

illustration of how real
has risen

is a dramatic
income

in a free e n t e r p r is e

economy during a single decade.
iAnd we have substant iat ing
e v i d e n c e that this
in our national

increase

income has been

spread broadly a m o n g the families
of the Nation -- thereby
greatly e n l a r g i n g the market

surprised a great many people,
including one of the bankers at
the luncheon who wasn’t convinced
until he had his own statistical
staff verify it.

A New York

State industria Iist wrote me a
few days ago that a number
of people in Kocnester had
wondered about the 40 percent
figure, but that when his staff

Bl

investigated the matter, they
also came up with the same result.

£81

which we have made in the postwar
per ioa stands out in even sharper
light when we compare our present
standard of living with that of
the prewar years.

We ail realize

that prices have risen sharply
since 1939*

We all realize that

taxes have increased greatly
since that time.

But how many

of us have recognized that
incomes -- after all taxes and
after taking account of changes in

yt

has put more than $)10 billion into
new plant and equipment.

Our

industrial plant now has an
output a third greater than in
■|| ■

the first postwar year.
■.•

Employment

ana income have reached successive
new records -* with civilian
employment last month topping
S2~I/2 million, and personal

I I|

income now exceeding an annual
rate of $250 billion.

■ || I | l -

-

The measure of economic progress

tremendous productive capacity of
America is, of course, our
primary responsibiIity.
'<

| i p

j

*

And let me

f

note here that the production
record of the postwar period is a
chronicle of unprecedented
achievement under a free enterprise
system,
and a demonstration of the
v
vitality and force of a democracy.
Our economic expansion since
the close of lor Id War !i has truly
been unparallelea.

Private industry

power.

So are our frI ends «*« the

other free nations.

The idea of

free nations making common cause
against the Communist threat is
working, and working well.

The

economic strength of each free
part of the world is bolstering
the strength of all parts.

The

resources in which some free
countries are rich and others less
well supplied are being balanced
through mobilization for the
strength of all.

7 -

Y •
ZL

military standpoint and an economic
standpoint, that we can always
maintain a strong position, whether
it be at arms or in constructive
negot iat ions.

That is the only

language the people we are forced
to deal with in the present
emergency can understand.
in spite of these harassments,
we are entitled, nevertheI ess, to
look ahead with confidence.

Day

>

by day we are accumulating more of
the sinews of military and economic

8£1

S

the freedom of one smail nation;
it is the defense of the basic
principle of freedom everywhere.
We must never allow
ourselves to forget that this
instance of armed aggression is
only one move in the Communist
drive against democratic /ideas and
ideals.

We must be especially

cautious that we allow nothing to
deter us from our determinati on to
so arm ourselves, both from a

4M»

not only to our own problems of
readjustment here in the United
States but also to many problems of
world-wide import.

We have found

ourselves, of necessity,

in the

role of leader of the world in
trying, to encourage and help
/

other nations in their efforts
to reestablish themselves as
members of the commonwealth of peaceful people.

I

gravity.
At the end of the war, all of
us were looking forward to the
postwar period with at least the
hope,

if not assurance, that we

were entering an era of peaceful
life in which to try to readjust
our economic affairs to a peacetime
pattern.

Unfortunately, that has

not been our experience.

In the

swift whirl of great events, we
have had to devote our attention

ri:atio n ’g- în v e s ime ni ifit e rests Ha
ti yen to the Treasury Depart-

since 1 Have b

# O' r K I H &

there;

out its problems of eg

y

0

} affi- 1rs of t
yovtrnment
These

do not

ro» IeIè

0

*
V

*■'
■hJ

#
i t * Î £ * grtk r U1
î
twH tfS

I §#

«ber or
y ipsP

■fer y *

, of cours-«- Iht present
emergency poses both new ina
coni

rob lams Of

T r U

i nt
1 s

I y

Jr

«Mit «
m

mmsua smm
mwmvm

m

m

&

m

«t. w em , i m i
i m m

», W A

m

The following address by Secretary before a
dinner meeting of the St. Louis Municipal Dealers Group
at the Racquet Club, St. Louis, Missouri, is scheduled
for delivery at 8:30 p.m.. CDT, Monday, August 20, 1951
and is for release at that time.

146
TREASURY DEPARTMENT
Washington

The following address by Secretary Snyder
before a dinner meeting of the St# Louis
Municipal Dealers Group at the Racquet Club,
St, Louis, Missouri, is scheduled for delivery
at 8:30 p,m,, CDT, Monday, August 20, l95l,
and is for release at that time*
*

I
was very pleased to receive the invitation of your president, my
old friend, Harry Theis, to address the St# Louis Municipal Dealers,
For one thing, I welcome every opportunity to return to St, Louis, talk
with my Missouri friends, and renew pleasant associations# I also welcome
every opportunity to express my deep appreciation of the assistance which
all the groups of the nation1s investment interests have given to the
Treasury Department since I have been there in working out its problems of
carrying on the fiscal affairs of the Government.
These problems, unfortunately, do not grow less in number of com­
plexity as the years go by# And, of course, the present emergency poses
both new and continuing problems of trying gravity.
At the end of the war, all of us were looking forward to the postwar
period with at least the hope, if not assurance, that we were entering an
era of peaceful life in which to try to readjust our economic affairs to
a peacetime pattern. Unfortunately, that has not been our experience*
In the swift whirl of great events, we have had to devote our attention
not only to our own problems of readjustment here in the United States
but also to many problems of world-wide import* We have found ourselves,
of necessity, in the role of leader of the world in trying to encourage
and help other nations in their efforts to reestablish themselves as
members of the commonwealth of peaceful people.
Further, these past-years have presented a disturbing fact to us#
We are faced with strong, andebatable evidence that there is an ideology,
opposed to ours, that intends to destroy our hard-earned freedom unless
we take positive steps to prevent it.
The Korean situation was an unhappy shock to all of us. The struggle
in which we are engaged in Korea is not the defense of the freedom of one
small nation;; it is the defense of the basic principle of freedom everywhere*
We must never allow ourselves to forget that this instance of armed
aggression is only one move in the Communist drive against democratic

S—2786

-

2

-

147

ideas and ideals# We must be especially cautious that we allow nothing
to deter us from our determination to so arm ourselves, both from a
military standpoint and an economic standpoint, that we can always main­
tain a strong position, whether it be at arms or in constructive negotia­
tions, That is the only language the people we are forced to deal with
in the present emergency can understand#
In spite of these harassments, we are entitled, nevertheless, to
look ahead with confidence# Day by day we are accumulating more of-the
sinews of military and economic power# So are our friends — the other
free nations. The idea of free nations making common cause against the
Communist threat is working, and working well* The economic strength of
each free part of the world is bolstering the strength of all parts• The
resources in which some free countries are rich and others less well
supplied are being balanced through mobilization for the strength of all#
Maintaining and nourishing the tremendous productive capacity of
America is, of course, our primary responsibility. And let me note here
that the production record of the postwar period is a chronicle of un­
precedented achievement under a free enterprise system, and a demonstra­
tion of the vitality and force of a democracy#
Our economic expansion since the close of World War II has truly
been unparalleled# Private industry has put more than $110 billion into
new plant and equipment.' Our industrial plant now has an output a third
greater than in the first postwar year# Employment and income have
reached successive new records -«* with civilian employment last month
topping 62-1/2 million, and personal income now exceeding an annual rate
of $2f>0 billion#
The measure of economic progress which we have made in the postwar
period stands out in even sharper light when we compare our present
standard of living with that of the prewar years. We all realize that
prices have risen sharply since 1939# We all realize that taxes have
increased greatly since that time. But how many of us have recognized
that incomes — after all taxes and after taking account of changes in
prices — have moved ahead even faster?
About two months ago at a luncheon meeting of the Bond Club in
Chicago, I made the statement that the average income available per per­
son for spending today will buy hO percent more goods and services than
the average per capita income in 1939* after adjustment for local, state,
and federal taxes. That statement surprised a great many people, including
one of the bankers at the luncheon who wasn't convinced until he had his
own statistical staff verify it* A New York State industrialist wrote
me a few days ago that a number of people in Rochester had wondered about
the k O percent figure, but that when his staff investigated the matter,
they also came up with the same result. Now I see that the United States
Chamber of Commerce, in an August release, confirms this same interesting
fact. Here is a dramatic illustration of how real income has risen in a
free enterprise economy during a single.decade#

148
- 3 And we have substantiating evidence that this increase in our
national income has been spread broadly among the families of the
Nation — thereby greatly enlarging the market for the products of
American agriculture and industry and the possibilities for profitable
business operations* Since the end of the war alone, 3> million new homes
have been constructed in the United States* This has been an important
step in raising the housing standards of our people* This betterment of
the way of life of millions of persons extends to many other fields.
Consider recreation and education. Many more persons each year are able,
because of their increased incomes, to enjoy vacations hitherto only
dreamed of* The records of the National Park Service, for example, show
that the number of visitors to all national park recreation areas last
year was more than double the number who enjoyed these facilities in 1939*
Today many more persons are able to benefit by the advantages of a higher
education. Enrollment in institutions of higher learning — exclusive of
persons taking advantage of GI educational benefits — is up one-fourth
over prewar enrollment. Our higher standard of living shows up in the
actual quantity figures of the food we consume and the sales records of
the goods we buy. It is reflected in the increase of almost one-fifth in
the consumption of meat per person; in the rise in per capita consumption
of eggs and poultry, of fluid milk, and fresh, canned, and frozen vege­
tables, It is evident in the growing numbers of American families who
are able to afford automobiles, refrigerators, radios and television sets,
washing machines and clothes dryers, and a host of other new consumer
goods which our industries have produced in .increasing volume during the
postwar period*
And, in addition to being able to buy more actual goods and services
than at any time in the pest, there is a notable improvement in the quality
of the products which we buy and the services at our command. The growing
and diversified industries of St. Louis provide excellent examples of what
I am talking about. The shoes from St. Louis factories and the fashions
of dress manufacturers and fur fabricators, the products of stove foundries
and electrical equipment plants, the processing and packaging of food
products, all show the results of improved techniques, of finer workmanship,
of superior materials, of greater emphasis upon functional styling* These
improvements are clearly evident in the products of this city.
The evidences of the truly remarkable industrial achievements of
this period and the growing economic strength of individual American
families give us confidence that we can meet the enlarged demands upon
our economic resources to provide the defense needs which communist
aggression has forced upon us. Already we have accomplished notable
increases in production for mobilization purposes while at the same time
maintaining civilian production at high levels. But the full impact of
the defense program has not yet been felt. Defense costs are scheduled
to increase to an annual rate of nearly ?.65> billion by the middle of
1952 — almost double the present rate. Measured by costs and demands

149
- li -

upon our economy* t h is i s a v ast program, but with wise p o lic ie s we can
support t h is e f f o r t and a t th e same time keep our economy sound and
growing•
A ll o f us have been a cu tely aware o f the strong in fla tio n a r y
pressures which have threatened our economic s t a b i l i t y during the p ast
year and which, i f l e f t unchecked, might weaken our productive machinery
to such an ex ten t as to in t e r fe r e s e rio u s ly with the output o f v i t a l
defense goods« F o rtu n a tely , th e upward sweep o f p rice s has encountered
some re s is ta n c e in recen t months. But we must not conclude from t h is
development th a t the end of in fla tio n a r y dangers has come. Indeed, I am
certa in th a t every one here f u l l y understands th a t th e planned a cce le ra te d
expansion o f m ilita r y output in the months ahead w i l l , o f n e c e s s ity , pro­
duce new in fla tio n a r y p re ssu res.
The f i r s t and most important sin g le r e q u is ite in assuring the
maintenance o f a sta b le economy to support our productive power under
these circum stances i s to m aintain a balanced budget s it u a tio n . What i s
required i s an adequate revenue program — one which w i ll enable us to
pay, to the g r e a te s t ex ten t p o s s ib le , fo r our defense b i l l s as they come
in , without re s o rtin g to d e f i c i t borrowing. To put our defense expendi­
tures on t h is b a s is , i t i s necessary th a t we have a d d itio n a l revenues
th is y ear. F a ilu re to keep our fin an ces on a pay-as-we-go b a s is i s
certain to weaken the f in a n c ia l p o s itio n o f the Government. I t i s c e r­
tain to impair the a b i l i t y o f our economy to fu n ctio n with maximum
effectiv en e ss during th is c r i t i c a l period in the l i f e o f our N ation.
A balanced budget w ill not by i t s e l f , however, do the whole job
of assuring the maintenance o f sound economic conditions in the country.
We need, in ad d itio n , a broad a n t i-in fla t io n a r y program which w i ll a c t
as a d ir e c t check on s p e c ific in fla tio n a r y p re ssu res. This program
requires th a t we e f f e c t the necessary r e s t r a in t s and c o n tro ls*
Another program high on the l i s t o f e f f e c t iv e a n ti-in fla tio n a r y
measures i s a nation-w ide savings program d ire cted e s p e c ia lly toward
individual saving. To accomplish t h is important o b je c tiv e , the Treasury
is going to inaugurate on Labor Day, a t Grand Rapids, Michigan, a new
Defense Bond Drive*
There are many things th a t each one o f us can do to help to keep
in fla tio n a ry pressures under c o n tro l, Most are l i t t l e th in g s, but in
the aggregate they add up to something b ig . We can r e fr a in from un­
necessary buying o f goods or se rv ice s o f the kind th a t give r i s e to
in fla tio n a ry pressu res on the p ric e l e v e l . We can re g u la rly put away
an extra p ortion of our income — put i t in to savings o f some type*
People were urged to save during World War I I , And they d id . They
b u ilt up record holdings o f liq u id a s s e ts — savings accou n ts, checking
accounts, cash, and holdings o f Government s e c u r itie s to a t o t a l amount
approximating &200 b illio n *

<

150

- 5 These wartime savings put into the hands of the people of the
country a purchasing power potential which encouraged them to go out
during the postwar period and buy goods and services which they might
not otherwise have felt they could afford to buy« They felt that they
could spend their current incomes freely because they had a large
reserve of savings* This has been an important factor in the unprece­
dented prosperity which the country has enjoyed since the end of the
war*

Consumer purchases in the postwar period in the aggregate were made
out of current income* The total volume of liquid asset holdings never
fell off — it has held steady at a level of around $200 billion* The
dollar amount of savings bonds outstanding has, in fact, increased by
$9 billion since the end of World War II financing — 4h billion in "E"
bonds alone*
There has been considerable talk — and even same worry — in recent
months because there has been some cashing of savings bonds in connec­
tion with the rush to purchase consumer goods following the outbreak in
Korea* Actually, the total dollar value of "E" bonds in the hands of
individuals has remained practically unchanged* I think we should keep
in mind, too, that such talk of liquidation overlooks the reasons why
people bought savings bonds in the first place* They bought them so
that they would have the money to use for some future need, pleasure or
emergency# For some people that time came after the outbreak of
hostilities in Korea. They had been putting off buying an automobile,
or a refrigerator, or a washing machine* After Korea, some remembered
the shortages of the last war and rushed to buy goods they had been
wanting# But, now, this type of buying has died down and we must try
to keep it under control so that we do not have another inflationary
upsurge of prices.

5

Every individual must realize that the dollars saved today are
building power for the Nation — not only economic power to back up our
great defense effort, but a reservoir of purchasing power for the future
stability and prosperity of our Nation when the present emergency is
over.
For, despite the present worries and problems which beset us, we
must not forget that we must constantly build for the future* It is in
that perspective that America has always advanced# It has been the
desire and hope for a better future that has given us as individuals the
courage and fortitude to adjust to the emergencies of the present, and
to meet the common need to protect the Nation*s security.
It is part and parcel of the American ideal — the belief that we
are building for an ever better future, and a peaceful and a prosperous
world where freedom and human progress are the rightful heritage of all
mankind*

oOo

-/-<*■ 7

KEXEASE, W M S i m J®fSPAmS,
Tue»day. Aaguat 21, 1951-

The Socretary of thè freaeury a m m i m s d laet eveniag that thè tendere fcap
|1,100, OO0,QOQ, or thereaboute, of 92-dagr Treaeury M ila to ha dated Auguet 23 and io
mature

Kovesfoer 23, 1F51, ag&eh i m e effersd «a Auguet 16* «ere qpened at thè Federai

geearve Banka

oh

Augnai 20*

The detaile of thla isso® are &s follo»©:

T o ta l
f a r •* $ 1, 9F2, 61t6, OCX)
Total aecepted
- 1,100,$62,000

Arerage Prie«

(imludea *152,660,000 entered on a
a^eoB^eMtl^e haeie and aecepted in
full at thè average prise ahowa belo»)

*» 9 9 * S W £%olvaleixt rate at discount apprcau X*6$l£ per m

m

Badge Of aecepted eoapeiiiiTO bidet (Eseepting «*» tender of *100,000)

p-igh
loe

« 99.600 Etiulvalezit rate of discount approau 1*5655 per annua
* 99*576
«
«
*
*
*
1*65$# * *
(22 pereexxt of thè aaount bid for at thè loir price me aecepted)

Federai Beeerve
Bistrict

Total
AppUsd for

Total
Aecepted

Boston
1tea M

t 17,31*0,000
1,387,353,000
35,7tó,000
50.255.000
26.885.000
2^,003,000
228.589.000
15,931*,000
9,665,000
31*.731*,003
k S .n o ,ooo
116.373.000

i

|1,992,6^6,000

11,100,562,000

Claveland
jH^hmOnd
Atlanta
Chicago
St. Louis
Minneapolis
ians&s Citgr
Sazi Fraaciseo

TOTAL

16,170,000
609.309.000
20,21*5,000
1*1,575,000
&,935,000
20.883.000
192.709.000
15,01*1*.ooo
9,665,000
33,5»,000
37.380.000
79.093.000

TREASURY D E P A R T M E N T
Information Service

Wa s h i n g t o n ,

RELEASE M O R N I N G N EWSPAPERS,
Tuesday, A u g u s t 21, 1951.

S-

27Ö 7

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 ,000,000, or thereabouts, of 9 2 - d a y T r e a s u r y b i l l s
to be dated A u g u s t 23 and to m a t u r e N o v e m b e r 23, 1951, w h i c h w ere
offered on A u g u s t l6, w e r e open e d at the F e d e r a l R e s e r v e B a n k s on
August 20.
The details

of this

is s u e - a r e as follows:

Total a p p l i e d for - $ 1 , 9 9 2 , 6 4 6 , 0 0 0
1,100,562,000
Total a c c e p t e d

Average Price

(includes $ 1 5 2 , 6 6 0 , 0 0 0
e n t e r e d on a n o n - c o m p e t i t i v e
basis a n d a c c e p t e d in full
at the average, price s h own
below)
- 9 9 . 5 7 8 / E q u i v a l e n t rate of d i s c o u n t approx.
.
$ per annum

1 651

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 )

Low

(22

99.6OO

E q u i v a l e n t rate
1.565%
- 99.5 7 6 E q u i v a l e n t rate
.. 6 5 9 $
-

' High

1

of d i s c o u n t approx.
per annum
of d i s c o u n t approx.
p er a n n u m

percent of the a m o u n t bid for at the lo w ]price was a c c e pted)
Total
Accepted

Total
A p p l i e d for

Federal Reserve
District
$

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

17,340,000

1 ,387, 353,000

35,745,000

$

16,170,000
609,309,000
20,24-5,000
,
24,935,000
,
,
15,044,000
,
,
,
,

41 575,000

50,255,000
,
24,003,000
,
15,034,000
9,665,000
34,734,000
45,770,000
116,373,000

26 885,000

20 883,000
192 709,000

228 589,000

TOTAL

$1,992,646,000

0O0

9
33
37
79

665,000
554,000
380,000
093,000

1 100,562,000

$ ,

-

34

-

progress of our State.

But may

I s a y , w 1th e x c u s a b l e pride among
my home folks,

that 1 still

Missouri 's fine s t product
people.

think

is its

For n o w h e r e are they finer

n o w h e r e are they friendlier,
n o w h e r e more generous.

and

! want you to know how I have
truly e n j o y e d the honor and privilege
I

of being here today at this -** the
first Annual
Breakfast.

Old C o u n t r y Ha®
After p a r t a k i n g of your

g r a c i o u s h o s p i t a li t y here this
morning,

i am w i l l i n g to predict

t hat this annual

b r e a k f a s t will

become a s famous as the State Fair
itself.

I share your pride

in the

many fine p r o d u c t s on display here —
p r o d u c t s which attest the g r o wing

I

221

stab m t y

an d p r o s p e r it y of our

N a t i o n when the present e m e r g e n c y
is over
The days that
d e c i s i v e ones,

lie ahead wiI I be

ifii shai I be cai led

upon many times to d e m o n s t r a t e our
unity of effo r t and our f i r m n e s s
of purpose.

But

if our determination

and our faith equal

the s t r e n g t h of

our cause -- the cause of f r e e d o m
and human progress -- we need have
no fears of u l t i m a t e success.

|32I

31

launching a full

scale d e f ense

bond drive s t a r t i n g on Labor Oay.
The purpose of the drive

is to

help m o b i l i z e the power of t h r i f t
in the present emergency.
All

of us must r e c o g n i z e that

the dollars we save today are building
power for. the N a tion -- not only
econ o m i c power to back up our great
defense effort,

but a r e s ervoir of

p u r c h a s i n g power for the future

Tax
individuals as well

as our

A s t r i n i n g example of what savings
mean to the farmers of our

ion

is the fact that today farmers hav
i financial
billion

in U n i t e d States savings bonds
an amount ions I to the

a Ione
total

r e s e r v e of some $5-1/4

net

income to f a r m e r s from all

farming o p e r a t i o n s

in 1940.

In order to s t i m u l a t e
e x p a n d the thrift o b j e c t i v e s of our
defense program,

the Treasury

is

j i v i ouai
luence

in

restra inin
Moreover,

invested
reserve

ture financial security

in

d i v e r s i on

ave

ens e
♦

services

»if

civilian
Iy --

shorter

ia Is

and

of

in

is to c o n f ine

o u r s e l v e s to n o n infI ation a r y spend
to save r e g u l a r l y out of our
ine ornes.
The s y s t e m a ti c purchase of
U n i t e d States D e f e n s e
one of the very best ways
every

offers
in which

farmer or factory
, industri a Ii st or small

P it
w
w

n

sary

s*v6". after

econo
W y U

m f;

WIs n

incentives.
£ip a r 0 H 1 1 a*are,

of c

ices hjive risen gree
!'t pr I
♦

J***

sj**♦

But

s incs

Inc offies after ta
Sjifc* f’Mf **

IS i

en faster.

i%

if ic*.
average per

Uni tea Sti
Ioca l, state

income in

a i

a y ,

«

u

a {most 40 percent more

ter ail
I ,

taxes,

w i l l

in actual

31

entails Is no small taste. Yet the
Inherent power of our democracy Is
measured not alone by our capacity
to build military defenses, but
also by our willingness to accept
thé costs and to mane the economic
sacrifices which the defense effort
imposes. The surest and safeàt way,
the only prudent way, to meet these
costs is through commensurate
taxation.
That is why

I

have urged upon

the Congress the importance of

r e s i l i e n t - e n o u g h to meet any demands

®fttcH the Defense effort may bring.
One of the r e q u i r e m e n t s to this end
is that we e f f e c t i v e l y combat

inflation whenever or wherever it
threatens our economic stability.
A prime requisite to the
financial health of our Nation is,
of course, a revenue program aimed
at paying for current expenditures
out of current income.

To meet

the increasing financial outlay
which our defense program

— 21
essential

that we m a i n t a i n the

stabiIi ty of our economy «hi Ie at
the same time e n d e a v o r i n g to work
out an ef f e c t i ve balanced defense
program.
country,

The

individuals of our

in whom restj" the final

s t r e n g t h and power of our Nation,
must be e n c o u r a g e d to take as active
a part as possible
It is of vital
the financial

in this effort.
importance that

st r u c t u re of our

N a t i o n remain strong enou g h and

ians *

Ever since the close of Son Id

- ar I I there have beer dar* c l o u d s
of c o m m u n i s m hanging over us.
aggression

||

•

The

in Korea m a r x e d the firs

f, ,

open attsCK.

1

t

the aid of other

countries joined with us in the
cause of human freedom, «© have
built defenses to stem this first

gjisap®:!!

fi

a Na t ion .*a are faC ing
: ta i threat
that hgv yat c a n £rantsd usr.
.;
l
the way * e unite to meet
f|§-% If

Of

w

& fi fc

cher jsh.

[he sta

i®
s If iI n
%,J

mm
I
"

this

en d s t h

-p
f •f

our

Upan

fV#t

the a 11

it

U

tf

f r o

«

r*.0 h |

i.

■?I
§
ii,
#
*us

I1

_s% JN*

'¿9

tne 1moor {Iag 1 1stic
s e e n

«or id.

r ncId i

v us. with a.

IT •
OTI
\

there « H i

be t e m p o r a r y setbaCKs ■

s e t backs such as the r e c e n t flood
disaster

in the Kaw and Missouri

Valleys,

But we have c o n q u e r e d

the ravages of nat u r e before,
we can

m u s t do

and

it now

HR

object

lesson of t o d a y ’s disaster

is that we must

Immediately put our

intelligence and our unit e d effort
beh i n d a c o n s t r u c t i v e p r o g r a m to
that such peril

shall not strIwe

a g a i n and find us unprepared.

lnsur«|

is not told what he must thinKor
what p a t t e r n his
'.t-t; •• ;■

He

life must taxe.

■

/

is still

free to hitch his wagon

to the star of his own choosing.
lit #

But that does not mean that here

in

V

America we go he Iter-SKeI ter
directions.
owe our

in all

On the contrary,

individual,

state and
’■ -

national

we

’

*S

■

p r o g r e s s to our ability

to c o o p e r a t e and to worK harmoniously
\

together
comm o n

in p u r s u i t s and c a uses of

interest.

State,

as well

as the u n p r e c e d e n t e d

progr e s s of our Nation,

in such a

short time has been cue prim a r i ly
to the fact that here

in A m e r i c a

we have provided the e n v i r o n m e n t
in which

individual

initiative and

s c i e n t i fi c g e n i u s could flourish.
No man

is told whether he must

plow a farm or w o r k

in a factory,

or whether his children shall
shall

or

not be p e rmitted to enter

schools of higher

learning.

He

i s sour }

as short

an occasional

incandescent

light

in favored spots near the towns.

A rotary egg beater or a kitchen
sink provi d e d e n o u g h of a novelty
to cause excited comments.
It seems a l m o s t

inconceivabIe

to us of the p r e s e n t m i d - c e n t u r y
generation,

who take for gran t e d

the many c o n v e n i e n c e s of f a r m and
home
oay

life and all a s p e c t s of modern
living,

that such c o n v e n i e n c e s

were not only u n h e a r d of but

a d v a n c e m e n t by the c l o s e of the
century.

But the mechanical

I m provements did
farm home
more

life

little to »aist

less tedious and

interesting.

were still

The farm women

p l o d d i n g along at

b a C K - b r e a K i n g tasxs.
only

thing that made

interesting

About the
life m o r e

for them prior to

1900 was the party

line i e I © p h o n e

Ihere was no other e fectr icqjfequ in
of any K i n d

in farm homes except

7
close to where trees were growing
because that was the type of /soil
most famil i a r to them.

By trial

and error method they a t t e m p t ed
the g r o w i n g of crops that had been
grown on what

¡j|
soil

||||

looked

like similar

I '• ,

|J

in other areas they had known..

For a long time the rich
p o t e n t i a l i t i e s of the prairie

land

were c o m p l e t e l y overlooked.
While the f r o n t i e r s m e n were
willing to share their hit-and-miss

I

6

resourcefuiness and ingenuity.
It has taKen determln®tIon and
vision.

Above all* It has isKen

education and enlightenment, and
the sharing of Knowledge of
Improved agricultural practices
with friends, neighbors, and fellow
ggrIculturaIIsts,
.¿hen the early settlers came
to Missouri from the eastern
states, they Knew little about the
potentialities of the soil of this
State.

They chose the darK soil

N a t u r e p r e s e n t e d Missouri
m u c h fertile soil.
to the old

with

Yet c ontrary

legend that a t t r a c t e d

p i o n e e r s to the B o o n ’s L ick Coun t r y
a c e n t u r y and a half ago —
you p l a n t i tenpenny nail
at night,

"If
there

h i t ’ ll sprout crow bars

by morn in’ |* -- even rich Missouri
soil

does not deliver up o r o d u c t s

for the m e r e asning.

It has taKen hard worK -- and
long hours of

it.

It has taKen

ill
Fafr at Seda I is
most
If

h oc

lately been

ow i indo* of the
is truly an inspiring display
industria I

of agricultural

a c h i e v e m e n t s which have steadily
to the

a

»

%# w

Fair,

m w

however,

#

is not

simply an o c c a s i o n for p o i n t i n g
w Ith

&

bount ifu I

ources of our State.
simply an occasi

It is not

881

It is » real

treat for me to

join with fellow-Mi ssour ians here
at the Mi ssouri

State Fair and

p a r t a k e of the o l d - f a s h i o n e d
h o s p i t a l i t y which has a l w a y s
c h a r a c t e r I zed Missouri

people.

Good food -- and plenty of
has

long been a n o t e d

of Missouri
of
are

it --

ingredient

hospi taIi ty.

Typical

its m any fine b r e a k f a s t dishes
its w o r l d - f a m o u s country ham

and biscuits.

And*

i am glad

uamaa

M

m
smn»

AX 10®

m m . os a

m suiwmsmm

im & m m w$ä& u m

sroMÄ, «issami

u8t00
m «*
so, %9Á
a»

The following address by Secretary Snyder at the First
Annual Old Country Ham Breakfast of the Missouri State
Fair, Sedalia, Missouri, is scheduled for delivery at
9:00 a.m., CST, Wednesday, August 22, 1951, and is for
release at that time.

5- J

TREASURY DEPARTMENT

189

Washington

The following address by Secretary Snyder
at the First Annual Old Country Ham Breakfast
of the Missouri State Fair, Sedalia, Missouri,
is scheduled for delivery at 9 :00 a# m. CST,
Wednesday, August 2lT,~T95>i, and is for reXease
at that time".

It is a real treat for me to join with fellow-Missourians here at
the Missouri State Fair and partake of the old-fashioned hospitality
which has always characterized Missouri people. Good food — and plenty
of it — has long been a noted ingredient of Missouri hospitality.
Typical of its many fine breakfast dishes are its world-famous country
ham and biscuits. And, I am glad to give credit where credit is most
certainly due; to the gifted Missouri ladies who prepared the ham and
all its trimmings for this sumptuous breakfast.
The entire Fair is, of course, a fine tribute to the talents and
skills of Missourians. I am happy to be here this year and share with
you the pride that is all Missouri’s in this exposition of the many
diversified products of its farms and factories. This annual State
Fair at Sedalia has most appropriately been named ”The Show Window of
the Commonwealth”. It is truly an inspiring display of agricultural
and industrial achievements which have steadily added so much to the
sound growth and progress of our State.
This Fair, however, is not simply an occasion for pointing with
pride to the bountiful resources of our State. It is not simply an
occasion to get together with old friends and acquaintances and ergoy
the many stellar attractions of the Fair. Its deeper significance
lies in the fact that since its establishment 5>0 years ago, it has
served as an educational workshop, providing the opportunity for
Missourians to share with each other their experiences and achievements,
and thus do their own jobs better in the future.
Nature presented Missouri with much fertile soil. Yet contrary
to the old legend that attracted pioneers to the Boon* s Lick Country
a century and a half ago — ”If you plant a tenpenny nail there at
night, hit’ll sprout crow bars by mornin’i” — even rich Missouri soil
does not deliver up products for the mere asking.
It has taken hard work — and long hours of it. It has taken
resourcefulness and ingenuity. It has taken determination and vision,
/hove all, it has taken education and enlightenment, and the sharing
of knowledge of improved agricultural practices with friends, neighbors,
and fellow agriculturalists.
S-2788

f

190
-

2

-

When the early settlers came to Missouri from the eastern states,
they knew little about the potentialities of the soil of this State.
They chose the dark soil close to where trees were growing because
that was the type of soil most familiar to them. By trial and error
method they attempted the growing of crops that had been ‘
gtfbwn on what
looked like similar soil in other areas they had know^u For a long time
the rich potentialities of the prairie land were completely overlooked.
While the frontiersmen were willing to share their hit-and-miss
experiences with fellow pioneers, the lack of communication facilities
and the dearth of scientific guidance in the choice and management of
the land and in the better breeding of livestock brought many disap­
pointments and many failures. As a result, farming in the 19th century
progressed slowly.
i
mechanization, it is true, had shown considerable advancement
by tne close of the century• But the mechanical improvements did little
to make farm home life less tedious and more interesting. The farm
women were still plodding along at back-breaking tasks. About the only
thing that made life more interesting for them prior to 1900 was the
party line telephone. There was no other electrical equipment of any
kind in farm homes except an occasicnal incandescent light in favored
spots near the towns. A rotary egg beater or a kitchen sink provided
enough of a novelty to cause excited comments.
sssms sl^ost inconceivable to us of the present mid-century
generation, who take for granted the many conveniences of farm and home
Hie and all aspects of modern day living, that such conveniences were
not only unheard of but undreamed of as little as 50 years ago. Today
we can travel to this great exposition from vast distances in a matter of
nours by plane or high-powered automobiles. Yet back in 1901 when the
Missoui’1 Fair was first inaugurated, it took a full day for families to
come by buggy or wagon from as short a distance as 25 miles. Yet many
came — and came from great distances — despite the hardships of travel,
of +M«°We
t0
£or their foresight and vision in the establishment
an imnn'P+nn+
^position — this State institution which has played such
an unportant role in disseminating information and inspiration for the
greater productivity of agriculture and industry.
h?Ve rePlaoed horses. Trucks and automobiles have replaced
i!!«
buggies. New and better breeds of livestock have replaced
bro,Lhi°ihtable °?TS’ Improved methods of marketing and processing have
M
V e r s i f i e d products of this State into world markets
rid renown. All this is 20th century progress.

S-2788

- 3 The dramatic strides of this State, as well as the unprecedented
progress of our Nation, in such a short time has been due primarily to the
fact that here in America we have provided the environment in which
individual initiative and scientific genius could flourish* No man is
told whether he must plow a farm or work in a factory, or whether his
children shall or shall not be permitted to enter schools of higher learning.
He is not told what he must think or what pattern his life must take* He
is still free to hitch his wagon to the star of his own choosing. But that
does not mean that here in America we go helter-skelter in all direction.
On the contrary, we oxre our individual, state and national progress to our
ability to cooperate and to work harmoniously together in pursuits and
causes of common interest.
In the long annals of history, no other nation has made the progress
that has been ours in just the past £0 years. That does not mean,
however, that we have by any means attained the zenith of individual and
national achievement. Far greater achievement may be ours if we heed the
lessons of past experience and continue to work together for the common
good.
He can expect that at times there will be temporal setbacks — setbacks
such as the recent flood disaster in the Kaw and Missouri Valleys, But we
have conquered the ravages of nature before, and x^e can and must do it now,
The object lesson of today1s disaster is that x*e must immediately put our
intelligence and oxir xinited effort behind a constructive pro gran to insure
that such peril shall not strike again and find us unprepared.
As a Nation we are facing today the most crucial threat that has
yet confronted us. Upon the way we unite to meet this threat depends
the very existence of our Nation and the freedoms we cherish. The stakes
are high, and we can afford no delusions as to the aims of the imperialistic
aggressors who seek to engulf the world, and principally us, with a flood
tide of communism — a tide designed to wipe out the ideas and ideals
which have inspired our lives and which stand as a beacon of hope to other
freedom-loving nations.
Ever since the close of World War II there have been dark clouds of
communism hanging over us. The aggression in Korea marked the first open
attack. With the aid of other countries joined with us in the cause of
human freedom, we have built defenses to stem this first attack. But we
must realize that the victory — the stopping of aggression — for xdiich
our United Nations* forces have been fighting in Korea marks but the
oeginning of our defense measures. We face an enemy xdio does not give up
easily — an enemy who will launch other attacks whenever or wherever
weakness appears in our defenses.
To insure a successful outcome of our great defense effort, it is
essential that we maintain the stability of our economy while at the same
time endeavoring to work out an effective balanced defense program. The
individuals of our coxintry, in whom rests the final strength and poxrer of

S-2788

192
- it -

our Nation, must be encouraged to take as active a part as possible in
this effort*.
It is of vital importance that the financial structure of our
Nation remain strong enough and resilient enough to meet any demands
which the defense effort may bring. One of the requirements to this
end is that we effectively combat inflation whenever cr wherever it
threatens our economic stability.
A prime requisite to the financial health of our Nation is, of
course, a revenue program aimed at paying for current expenditures out
of current income* To meet the increasing financial outlay which our
defense program entails is no small task. Yet the inherent power of our
democracy is measured not alone by our capacity to build military defenses,
but also by our willingness to accept the costs and to make the economic
sacrifices which the defense effort imposes. The surest and safest way,
the only prudent way, to meet these costs is through commensurate taxation*
That is why I have urged upon the Congress the importance of
providing the necessary revenue program as a safeguard against a Federal
deficit in the current fiscal year. It is iry firm conviction that a
soundly financed defense program must be based on a pay-as-we-go policy*
I do not at this time want to go into any detailed analysis of our
revenue and expenditure prospects, but X do want to point out that the
pending tax program is not only necessary, but can be absorbed by our
economy and leave, after taxes, a good margin of profits and incentives#
¥e are all aware, of course, that prices.have risen greatly since
1939. But incomes after taxes have moved ahead even faster. It is a
truly significant fact that the average per capita income in the United
States today, after all taxes, local, state and Federal, will buy almost
uO percent more in actual goods and services than the average per capita
income in 1939#
Moreover, people today can buy things which in earlier years x^ere
either not available at all, or were available only to a limited number*
There has been a grox-rbh unprecedented in economic history in the incomes
of the middle group. This growth has greatly enlarged the market for
the products of American agriculture and industry — and greatly enlarged,
also the possibilities of profitable business operations.
The protection of the financial strength of our economy, however,
involves more than the question of adequate revenues. Individuals,
collectively, after the payment of taxes, will still have in their hands
large sums to spend or to save. The wise course in a period like the

S—2788

5

193

present — when the increasing diversion of manpower and materials to
defense purposes will leave maiy civilian goods and services in shorter
suppler — is to confine ourselves to noninflationaiy spending and to
save regularly out of our inccanes*.
The systematic purchase of United States Defense Bonds offers one
of the very Pest ways in which every American
farmer or factory worker,
industrialist or small business man — can play an important part in
keeping our econony healthy and strong. While the role that a particular
individual^ savings may play may seem small, we must never forget that
the all-important aggregate of these individual savings creates a
tremendous influence in restraining inflationary pressures*
Moreover, money invested in
future financial security of our
striking example of what savings
the fact that today farmers have
billion in United States savings
total net income to fanners from

savings is a powerful reserve for the
individuals as well as our Nation. A
mean to the fanners of our Nation is
a financial reserve of some $5>-l/h
bonds alone — an amount equal to the
all farming operations in 19h0,

In order to stimulate and expand the thrift objectives of our
defense program, the Treasury is launching a full scale defense bond
drive starting on Labor Day* The purpose of the drive is to help mobilize
the power of thrift in the present emergency*
All of us must recognize that the dollars we save today are building
power for the Nation — not only economic power to back up our great
defense effort, but a reservoir of purchasing power for the future
stability and prosperity of our Nation when the present emergency is over,
The days that lie ahead will be decisive ones* We shall be called
upon many times to demonstrate our unity of effort and our firmness of
purpose* But if our determination and our faith equal the strength of
Our cause
the cause of freedom and human progress — we need have no
fears of ultimate success,
I
want you to know how X have truly enjoyed the honor and privilege
of being here today at this — the first Annual Old Country Ham Breakfast,
After partaking of your gracious hospitality here this morning, I am
willing to predict that this annual breakfast will become as famous as
the State Fair itself* X share your pride in the many fine products oh
display here — products which attest the growing progress of our State,
But may I say, with excusable pride among my home folks, that I still think
Missouri^ finest product is its people. For nowhere are they finer,
nowhere are they friendlier, and nowhere more generous,
oOo
S-2788

~ 3 -

aftLFRte
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 j
year for which the return is made, as ordinary gain or loss.
Treasury Department Circular No. Ul8, as amended, and this notice, prescriba
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.

Copiej

-

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 will be opened at the Federal
Reserve Banks and Branches, following which public announcement will be made by
the Secretary of the Treasury of the amount and price range of accepted bids.
Those submitting tenders will be advised of the acceptance or rejection thereof.
The Secretary of the Treasury expressly reserves the right to accept or reject
any or all tenders, in whole or in part, and his action in any such respect sha
be final.

Subject to these reservations, non-competitive tenders for '¿200,000 j

or less Yiithout stated price from any one bidder Till be accepted in full at the
average price (in three decimals) of accepted competitive bids.

Settlement for}

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

August 30, 1951
, in cash or other immediately aval
--------- $ $ --------able funds or in a like face amount of Treasury bills maturing August 30* 195L|

Cash and exchange tenders will receive equal treatment.

jgc

Cash adjustments will

made for differences between the par value of maturing bills accepted in exchan
and the issue price of the new bills.
The income derived 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 al
special treatment, as such, under the Internal Revenue Code, or laws amendatory]
or supplementary thereto.
gift

The bills shall be subject to estate, inheritance,

or other excise taxes, whether Federal or State, but shall be exempt fr°

all taxation now or hereafter Imposed on the principal or interest thereof by
i

Exhibit: :Ì

mm
TREASURY DEPARTMENT
Washington

y

p

q

Q

FOR RELEASE, MORNING NEWSPAPERS,
Thursday, August 23, 1951
T H \
The Secretary of the Treasury, by this public notice, invites tenders for
$1,100,000,000

, or thereabouts, of

Q1

in exchange for Treasury bills maturing

-day Treasury bills, for cash and

August 30 » 1951
--------------- —

y to be issued on

--------------------

a discount basis under competitive and non-competitive bidding as hereinafter
provided.

The bills of this series will be dated

vail mature November 29, 1951
interest.

August 30, 1951

, and

s when the face amount will be payable without

They Yri.ll 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, tv/o o ’clock p.m., Easterr^&asxrisxad time, Monday. August 27. 1Q51 ■
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, es. 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 Yrtiich vali
be supplied by Federal Reserve Banks or Branches on application therefor.
Others than banking institutions Yri.ll not be permitted to submit tenders
except for their own account.

Tenders vrill be received Yrithout deposit from

incorporated banks and trust companies and from responsible and recognized
dealers in investment securities.

Tenders from others must be accompanied

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

TREASURY DEPARTMENT
Information Service

WASHINGTON, D .C .

REIEASE M O R N I N G NEWSPAPERS,
Thursday. A u g u s t 23, 1951-

■

S

-2789

The S e c r e t a r y of thè Treasury, b y this p u b l i c notice, invites
tenders for $ 1 , 100,000,000, or thereabouts, of
-day 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 A u g u s t 30, 1951,
Ito be issued on a d i s c o u n t basis u n d e r comp e t i t i v e and n o n - c o m p e t i t i v e
[bidding as h e r e i n a f t e r provided.
The b i lls of this, series, w i l l be
dated August 30, 1951, a nd w i l l m a t u r e N o v e m b e r . , 1951, w h e n the
face amount w i l l be payable 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 form only, a nd in d e n o m i n a t i o n s of $ ,
, .¿ ,
, $
,
,
[$
,
, $
,
, a nd $ ,
( m a t u r i t y value).:' A .

91

100 000

500 000

1 000,000

29
1 000 5 000

10 000

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 Banks, 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 u g u s t
,
. Te n d e r s w i l l not be r e c e i v e d at the
.
Treasury Department, Wash i n g t o n .
E a c h tend e r m u s t be for a n e v e n
[multiple of $ ,
, and in the case of comp e t i t i v e tenders the price
offered m ust be e x p r e s s e d on the basis of
, w i t h not m o r e t han
three decimals, e. g., 99*925*
F r a c t i o n s ma/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 envelopes w h i c h w i l l be su p p l i e d b y F e d e r a l R e s e r v e B a n k s or
Branches on a p p l i c a t i o n therofor.

27 1951

1 000

100

Others t h a n b a n k i n g inst 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 except for their own account.
Tenders w i l l be r e c e i v e d w i t h ­
out deposit f r o m i n c o r p o r a t e d banks and trust companies and .from
[responsible and r e c o g n i z e d d e a lers in i n v e s t m e n t securities.
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
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 b y an e x press 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..

2

I m m e d i a t e l y a f t e r the c l o s i n g hour, t e n d e r s - w i l l be open e d at
the Federal R e s e r v e B a nks and 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 made by the S e c r e t a r y of the T r e a s u r y of the
amount and price 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 ad v i s e d of the a c c e p t a n c e or r e j e c t i o n thereof.
The S e c r e t a r y
of the T r e a s u r y e x p r e s s l y r e s erves the r i g h t to a c c e p t or reje c t a n y
or all tenders, in w h ole or in part, and his a c t i o n in a n y such
respect shall be final.
Subject to these reservations, n o n ­
competitive tenders for $
or less w i t h o u t stated p r ice f r o m a n y
one bidder w i l l be a c c e p t e d in full at the a v e rage price (in three

200,000

-

2

-

d e c i mals) of a c c e p t e d comp 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 erve B a n k on A u g u s t 30, 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 bills
m a t u r i n g A u g u s t 30, 1951.
Cash and e x c h a n g e tenders w i l l receive
e q u a l treatment.Cash a d j u s t m e n t s w i l l be m ade for d i f f e r e n c e s
b e t w e e n the p ar 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 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
gai n fro m the sale or other d i s p o s i t i o n of the bills, shall not have
a ny exemption, as such, an d loss f r o m the sale or other disposition
of T r e a s u r y bills shall not h a v e a n y s p ecial treatment, as such,
u n d e r the I n t e r n a l R e v e n u e Code, or laws a m e n d a t o r y or supplementary
thereto.
The bills shall be subject to estate, i n heritance, gift or
other e x cise taxes, w h e t h e r F e d e r a l or State, but shall be exempt
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 im p o s e d on the p r i n c i p a l or
in 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 b y a n y local t a x i n g a uthority.
F or 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 originally
sold by the U n i t e d States shall be c o n s i d e r e d to be interest.
Under
Sections 42 and 117 (a) (l) of the I n t e r n a l , R e v e n u e Code, as amended
by S e c t i o n 115 of the R e v e n u e Ac t of 1941, the a m o u n t of di 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 oth e r w i s e d i s p o s e d of, and
such bills are e x c l u d e d fro m c o n s i d e r a t i o n as c a p ital a s s e t s .
A c c o r d i n g l y , the owner of T r e a s u r y bills (other t h a n life insurance
companies) issu e d h e r e u n d e r n e e d include in his income tax r e t u r n
onl y the d i f f e r e n c e b e t w e e n the price p a i d for such bills, whether ori
o r i g i n a l issue or on subs 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 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 a nd g o v e r n the
con d i t i o n s of their 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.

oOo

So

future.

long as he and his

f e l l o w s work together
;15V ifll«Si115

In unity

and

<{■-

s u r eness of purpose,, the American
of

1951 can face hi s future with

a I I confI deuce.

.""í

:,•' .

v/' y../.' '

; .vi..'.-.' .■■ , :

years

'

t

r '' :¡ ■: • : "' ■ - v-N:

v \V.

.■/ :■; ■■■;.' ■■ v' , ■

'':y.y..;!

'■ V

.

in the war years and

the postwar period —

has

■

■

■

.

-' V

in

been

a

truly r e m a r K a b l e d e m o n s t r a t i o n of
the power and vitality of our free
e n t e r p r i s e system.

Nowhere else

in the world has a c o m p a r a b l e record
been achieved.

The s upremacy of

our p r o d u c t i v e power and
potential

its

for defense output

unquest io n e d .
These facts provide the
f o u n dation

for our faith

in

is

be a v a { t a b l e to augment the
p u r c h a s i n g power of c u r r e n t

Incomes

to p r o l o n g p r o s p e r i t y by p r o v i d i n g
m a r K e t s for our great p r o d u c t i o n
c§pac ity.
The o u t c o m e of the w o r i d - w i d e
s t r u g g l e for freedom w i l l . d e p e n d
in very

large part on the

fundamental

strength of our economy

The economic e x p a n s i o n
country

In the

In this, .
:-

last ten to twelve

of c u r r e n t

Incomes

vari e d o u t p u t of c i v i l i a n goods
which has pou r e d forth from our
Industr i®s.
The same thing can hapoen after
the p r e s e n t urgent r e o u i r e m e n t s of
our d e f e n s e effort have been met.
»‘¡hen

labor and m a t e r i a l s are

r e l e a s e d from the d e f e n s e program.
the financial r e s e r v e s which we out
-'/
__
;';
.
aside out of t o d a y ’s high

incomes will

SOS

a an exc e p t t o m I o p o b r t u n I
for b u i l d i n g up their financial
reserves
This h a p pened during Wo r l d
|

i*f

II,

dur ia

The r e s e r v e s built up
war years have

important factor

in ma fntainlng the

p r o s p e r i t y which w e , h a v e e n j o y e d
since the end of the war.

The

fatting of secur i t y which this
baCKtog of p u r c h a s in g power provides
has m a d e p e o p l e willing to buy out

EOS
.

ml

I 4* ä
.1
y
W'

h ™ * *t

p f •

0

í*

S» I 8 f

fS f 1

S S V

Ä■xvL
ni
'*** 3

eve is

n

Ä
ft
ípl

om@s
a %/ a f*

fifiif

teIlif f h ftf»

1#

is most d es Sre b 1e

that ev fry Affieri can c o m m 11 fi1W^5e 1f
to a or ogrsff* of

1n c r e a s e d

s a v legs.

It is c 1tar that e r t a t fy’1 1nerea
*

_^

a

H

^

s e v Inrs tr« réou »reel If we i f® to
succeed

In c u t t 1n l d o w n

*n.
1n flati n f
'Ll

1' ■■is

This Is a part of the pro grans
onorale

a0$

- 27 -

security

to our people without,

necessity,
mi

p r o d u c i n g new

.pressures.,

inf

of

l i t ionery

if left uncontrolled,

these p r e s s u r e s c o u I d s e r i o u s ly
,Ms#
S| 1

c r i p p l e our defense effort.
I; .

The

first essential

is a

p a y - a s - w e - g o p r o g r a m for the Federal
Government.

For this purpose,

we

1 1 1 I n0@d an ¡j diijtjn#%0 r*0V8nu0
one which,will

cover our Federal

e x p e n d i t u r e s to the g r e atest extent
p o s s i b l e during t h e •defense

— 26 —
about $ 15 billion.

This rate has

more than doubled -- to about $35
billion at the present time;

and

it

is e s t i m a t e d that by a n o t h e r year -Gy the m i d d l e of

i952 -- expend itures

tor defense ana r e l a t e d
a p p r o a c h $65 Dll I ion.

items will
By that time,

they will a p p r o a c h on e - f i f th of the
national

product of our economy.

The m e a n i n g of this

is clear,

cannot un d e r t a ke the full
which

%

program

is ne c e s s a ry to provide adequate

** 25 -

80S

e x p e n d i t u r e s wfIi
rapidly*

mM i l i t a r y product ion 1 s

just getting
date.

ac c e l e r at e

its striae;

into

largely

St nas been

prepa ratory stage.

to

in a

K& the

itoli i 1 ization eff'or t is stepped u p ,
s gr o wing portion at tne total
output of

the country w i 1 1, of

necessity,

be directed to ward the

fuIf i 1m m l

of our defe n s e n e e d s .

A year ago,

we were spend ing

for defense a t an annual

rate of

-

60S

ZA

-

'

Si net the outbr e a k of aggress ion in
K o r e a , there has been w i d e s p r e a d
r e c o g n i t i o n of the d a n g e r s of
inf(at*on among our peopie.

Now,

however -« because there has been

a r e l a t i v e s t a b i l i z a t i o n of prices
in r e c e n t months -- there

is a

tendency

in some q u a rters to think

that the

inf fati unary treno has

ended.

This

is not

important fact

case.
is that

the m o n t h s ahead national

in

security

individually,
p e r f o r m his job

each of us can

in a n u m b e r of ways;

and under the present circumstances,
there
more

is nothing we can do w h i c h
important than

is

to prevent

inflation from g a i n i n g headway

in

our economy.
i know that everyone of you
well

is

aware of the u n d e r m i n i n g

influence that

inflationary pressures

cou id have on the produ c t iv e power
of the Nation,

if

left unchecked.

ri * i

IIS

-

called upon

(LC

-

to shoulder arms for tilt

d e f e n s e of freedom.

Not all of us

wiI I even have a job nere at home
which will

be marked with the

"military** or "defense.*'

label

But e a c h

of us has a job to help protect and
increase true N a t i o n ' s p r o d u c t iv e
s t r e n g t h and Capacity.

The

p r o d u c t iv e m a c h i n e r y of this
Nation

is the most

in the arsenaI
»or Ia .

important weapon

of the entire free

friendship is so important to our
defense and to our prospects for
»orIc peace,

A strong American

economy is our basic and.most
essential resource in a »orid-»id©
struggle to «®if§ possible the
survival of free peooles and to
achieve piste#*
A few minutes ago I said that
each one of us can mat<e a special'
contribution to our country In this
r

present period of threat to our way
of life,

hot ail of us will be

SIS
r e a s o n why the P r e s i d e n t

I8

I have a d v o c a t e d ns s t r o n g l y as
p o s s i b l e p a y m e n t of d e f e n s e as well
as o r d i n a r y g o v e r n m e n t e x p e n d i t u r e s
out of c u r r e n t r e v e n u e and have
urged taxes that will s u p p o r t that
policy.

These m e a s u r e s have as

their o b j e c t i v e s the s t r e n g t h e n i n g
of our whole economy.
it# h ave great resoonslbiI lifts

and great duties,

both to o u r s e l v e s

and to our n e i g h b o r s w hose

to exer c i s e self-control.
indication of this

One

is the fact that

so many American fami lies
s y s t e m a t i c a l l y build savings by
p u t t i n g part of their
savings accounts,

income

into

insurance,

s a v i n g s bonds and other thrifty
in v e s t m e nt s *
I believe that the overwhelming
m a j o r i t y of our c i t i z e n s not only
are willing to support prudent
polic i e s but

insist upon them.

That

have reen f o r ce d our faith by effort.
'W M

!

/ J,

A m e r i c a n s have r a i s e d their standard
of

living by a m i r a c l e of production.

We a c c o m p l i s h e d the transition

from

an a l l - o u t war effo r t to a full
p e a c e t i m e prod u c t io n effo r t w i t h a
m i n i m u m of disruption,

We now have

more people e m p l o y e d than ever
before.

The average spendable

income per person* a f t e r t a x e s and
after t a k i n g
in prices,

into account changes

buys a p p r o x i m a t e Iy
\

■

■YÎS

-

the
o

16

freeworld to out an end

to

sfrreis ton
Our program has been to hind

free peoples of the world for
mutual protection end for
advancement of those values which
we have learned are essential if
individual human beÎn?§ are to
realize their greatest capacities.
That propr

~ been successful

We'have supported it here at home
by practicing »hat we oreach.

m i l i t a r i l y for common defense,
t h r o u g h the A t l a n t i c Pact, and soon
will

be strong e n o u g h to make any

a g g r e s s o r s think well

before they

attack.
In the Pacific,

too,

the free

n a t i o n s have been drawn t o g e t h e r
and s t e p s , h a v e been taken for
u n i f i e d defense.
action

The U n i t e d Nations

in Kprea has d e m o n s t r a t e d

beyond a shadow of a doubt the
d é t e r m i n â t ion of the peoples of

alone.

The p r i n c i p l e of tyranny

is a c o n t i n u i n g mena c e to ail*
Our country * s practical
program
it

is a m a t t e r of record,

is not a static thing,

it is

not a possession of any s i n g l e group.
It e x p r e s s e s the p h i l o s o p h y of a
d e m o c r a t i c people,

acting through

their elected r e p r é s e n t â t ives.
Its o b j e c t i v e

is the a t t a i n m e n t

of peace and freedom.
To that end,

your G o v e r n m e n t

•■ISS
individual

f r e e d o m for o u r s e l v e s —

f r e e d o m to

live

exc

e ideas,

in peace,

to

to advance to

higher s t a n d a r d s of

living -- but

we also r e c o g n i ze that
o p p o r t u n i t i e s for these f reedoms
must become ever wider for people
everywhere.

This

is idealism of

the most practical

kind.

Americans

have been taught by the e x p e r i e n c e
of war that f r e e d o m

is not

s o m e t h i n g that can be enjoyed

physical

capacity to justify confidence

in t h e future.
Let there be no doubt that
the U n i t e d States of America has
an u n s w e r v i n g f a i t h

in its ideals, a

clear mission and a posi t i v e program
for the days to come.
\

Our p r i n c i p le s are b a s i c a l l y
the s a m e as the ones that
us

in 1776.

inspired

But they have

b r o a d e n ed and m a t u r e d and grown
stronger.

We not only

insist upon

bullt

F o r t u n a t e l y we

upon the f o u n d a t i o n s w hich
of faith

in

past.

Our

plants and f a c t o r i e s have performed
m i r a c l e s of pro d u c t io n not only of

civilian

s but of e v e r y kind of

m i l i t a r y material.
never

Our farms have

greater capac i t y for
food and other essential

f r u i t s of agricuIture.

Our economy

is strong and can be made stronger.*
No one can d i s p u t e that we have the

fight i n g against
brand

it.

The c o m m u n i s t

is just an ancient m e n a c e

domi«at ion

in

ind©©d|

/

presence

Strj C K e n c i t i e s rose again.
F i elds scarred and p i t t e d by
armed conflict were brought once
m o r e under cultivation.

Pioneers

m o v e d w e s t w a r d adding new stars
to the flag.

With faith and

v i s i o n there was c r e a t e d greater
unity of p u r p o s e than e v e r .
The history of our democracy
is one of m e e t i n g o b s t a c l e s and
danger and,

in every

instance,

an*

«j|

mm

one of the elements which made
possIbIe --

Indeed produced --

a happier time.
Faith and energy and
Ameri c a n

ingenuity such as theirs

I pjl

| ,/

'

impelled them to strike out
new directions.

in

It impelled them

to seek new m e a n s of d e v e loping
our resources,
moral.

both material

and

Thus was g e n e r a t ed new

strength.

anew what had been

lost.

Such was the s i t u a t i on at the
time our f r a t e r n i t y m s

born.

Yet

we Know now that the faith which,
by the Ir act, those three young
men e x p r e s s ed
and

in their own future,

In the future of their country,

was fully j u s t i f i e d by events that
followed.
youthful

U n d o u b t e d l y such
c o u r a g e and w i l l i n g n e s s

to start s o m ething new

In the face

of the g l o o m i e s t of p r o s p e c t s was

over

large parts of our country.

Ions wou
of havJug to build

I

if <pf y ^rif

ä

j**

if*m

ftm

o ieases
S tS llf f i t

our

#

IK

- 2 gave them as undergraduates.
There are no# more than 50,000
living members who are making daily
contributions to the Nation*s
progress and welfare,
Each one of us can maKe a
special contributI on, oarticulariy
in present times,

$e live in a

world of uncertainties and threats.
The very fact that our times art
full of strains and stresses
provides § greater opportunity for

11 is always a special

p leasure

to me to be a guest of my brothers
of Alpha Tau Omega,

for

great deal

in being a

of p r i d e

I tat<e I

member of this d i s t i n g u i s h e d
fra tern ity

Curs

is one

older col Ie g © f r a t e r n i t i e s ,

and

it

has given to our country many
substantial
of

citizens

in many w a I ks

life who have b e n e f i t ed from

the training

in friendship and

good c o n d u c t which Alpha Tau Omega

TREASURY DEPARTMENT
Washington

The following address "by Secretary Snyder
before a Chapter Officers Conference of
the Alpha Tau Omega Fraternity at Gettysburg
College, Gettysburg, Pennsylvania , is__
scheduled for delivery at 8:00 p»m« E.D»T«.
for releasfl,
at that time*
- II......... mi ....... "

---------- ”

¿»ECONOMIC STABILITY IS THE BEDROCK OF DEFENSE*

235

TREASURY DEPARTMENT
Washington

The f o l l o w i n g ad d r e s s by--Secretary S n yder
b e f o r e a C h a pter Of f i c e r s Con f e r e n c e of
the A l p h a T a n Omega F r a t e r n i t y at
G e t t y s b u r g College, Gettysburg, Pennsylvania,
is s c h e d u l e d for d e l i v e r y at 8:00 p.m, E.D.T.
Friday, A u g u s t
I
I, and ‘is for re l e a s e
at that timel

95

ECONOMIC

S T A B I L I T Y IS THE B E D R O C K OF D E F E N S E

It is a l w a y s a s p ecial pl e a s u r e to me to be a guest of m y
brothers of A l p h a T a u Omega, for I take a great d e a l of p r ide in
being a m e m b e r of this d i s t i n g u i s h e d fraternity.
Ours is one of
the older college fraternities, and it has g i v e n to our c o u n t r y
many s u b s t a n t i a l citizens in m a n y w a l k s of life w h o h ave
benefited f r o m the t r a i n i n g in f r i e n d s h i p a nd good conduct w h i c h
Alpha T a u O m e g a gave t h e m as u n d e r g raduates.
T h ere are n o w m o r e
than
l i v i n g m e m b e r s who are m a k i n g d a i l y c o n t r i b u t i o n s to
the Nation's p r o g r e s s and welfare.

50,000

E a c h one of us c an mak e a special contribution, p a r t i c u l a r l y
in present times.
W e live in a w o r l d of u n c e r t a i n t i e s and threats.
• The v ery fact that our times are full of strains and stresses
provides a gr e a t e r o p p o r t u n i t y for e a c h i n d i v i d u a l to p l a y an
important p a r t .
Next m o n t h w i l l see the 86th a n n i v e r s a r y of the f o u n d i n g of
Alpha T a u Omega.
T hat event oc c u r r e d on S e p t e m b e r 11,
in
Richmond, V i r g i n i a .
The three y o u n g founders m a d e t h e i r pl e d g e s
to each o t her at a cr i t i c a l m o m e n t in the h i s t o r y of our nation.

1865

S

-2790

236
-

2

-

A r m e d c o n flict h a d p r e v a i l e d over large parts of our country*
Villages, towns a nd cities h a d e x p e r i e n c e d the ra v a g e s of war.
Millions of do l l a r s w o r t h of p r o p e r t y h a d b e e n b l a s t e d into
rubble, and h u n d r e d s of thousands of our best y o u n g m e n had b e e n
killed or c r i p p l e d in battle.
O u r f o r e f a t h e r s k n e w that future
generations w o u l d be faced w i t h the bu r d e n s of h a v i n g to b u i l d
anew what h a d b e e n lost.
Such w as the s i t u a t i o n at the time our f r a t e r n i t y was born.
Yet we k n o w n o w that the f a i t h Which, b y t h eir act, those three
young m e n e x p r e s s e d in their own future, and in the future of
their country, w as f u l l y justified b y events that followed.
Undoubtedly such y o u t h f u l courage a nd w i l l i n g n e s s to start s o m e ­
thing n e w in the face of the g l o o miest of p r o s p e c t s was one of
the elements w h i c h m a d e p o s s i b l e — — indeed p r o d u c e d —
a happier
t ime.
F a i t h a nd e n e r g y and A m e r i c a n i n g e n u i t y such as theirs
impelled t h e m to strike out in n e w directions.
It i m p e l l e d t h e m
to seek n e w m e a n s ot d e v e l o p i n g our resources, b o t h m a t e r i a l an d
moral.
Thus was g e n e r a t e d n e w strength.
S t r i c k e n cities rose again.
F i e l d s s c arred a nd p i t t e d b y
armed conflict w e r e b r o u g h t once m o r e u n d e r cultivation.
P i o neers
moved w e s t w a r d a d d i n g n e w stars to the flag.
W i t h f a i t h and
vision there was c r eated gr e a t e r u n i t y of p u r p o s e t h a n ever.
The h i s t o r y of our d e m o c r a c y is one of m e e t i n g obs t a c l e s and
danger and, in e v e r y instance, o v e r c o m i n g them.
E v e r y age has
its diff i c u l t i e s a n d its d a n g e r s . Time and a g a i n this c o u n t r y
has faced a w o r l d t e e m i n g w i t h m e n a c e .
Frequently, in rece n t months, we h a v e h a d p a i n t e d for us
a gloomy p i c t u r e of our p r e s e n t times, s t r e s s i n g the p r e s e n c e of
both old d a n g e r s a n d n e w f orebodings.
B u t the threat of t y r a n n y
is not new.
M e n h a v e m e t it before in h i s t o r y a nd A m e r i c a n s h a v e
had a long e x p e r i e n c e in f i g h t i n g a g a i n s t it.' The co m m u n i s t
brand is just a n a n c i e n t m e n a c e in a n e w form.
F o r t u n a t e l y we
have come to r e c o g n i z e the d e s igns of w o r l d c o m m u n i s m for what
they arc -- the spread of i m p e r i a l i s t i c p o w e r a nd d o m i n a t i o n and,
indeed, the e x t i n c t i o n of s e l f - g o v e r n m e n t thr o u g h o u t the world.
F o r t u n a t e l y we h ave b u ilt w e l l u p o n the f o u n d a t i o n s w h i c h w e r e
laid by m e n of f a ith in the past.
Our p l ants an d fac t o r i e s h a v e
performed m i r a c l e s of p r o d u c t i o n not o n l y of c i v i l i a n goods but
of every k i n d of m i l i t a r y m a t e r i a l .
Our farms h a v e n e v e r h a d

237
- 3 greater c a p a c i t y for p r o d u c i n g food and other e s s e n t i a l fruits
of agriculture.
Our e c o n o m y is s t r o n g a nd can he m a d e strohger.
No one can d i s p u t e that we h a v e the p h y s i c a l c a p a c i t v to Ju s t i f y
confidence in the f u t u r e ,
Let there be no d o ubt that the U n i t e d States of A m e r i c a has
an u n s w e r v i n g f a i t h in its ideals, a clear m i s s i o n a nd a p o s i t i v e
program for the days to come.
Our p r i n c i p l e s are b a s i c a l l y the same as the ones that
inspired us in 1 7 7 . But t h e y hav e b r o a d e n e d a nd m a t u r e d and
grown stronger.
W o not o nly insist u p o n i n d i v i d u a l f r e e d o m for
ourselves - - f r e e d o m to live in peace, to e x c h a n g e ideas, to
advance to h i g h e r standards of l i v i n g -- but we als o r e c o g n i z e
that o p p o r t u n i t i e s for these freed o m s m u s t b e come e ver w i d e r for
people everywhere.
This is i d e a l i s m of the mos t p r a c t i c a l kind.
Americans h a v e b e e n taught b y the exp e r i e n c e of w a r that f r e e d o m
is not s o m e t h i n g that can be e n j o y e d alone.
The p r i n c i p l e of
tyranny is a c o n t i n u i n g m e n a c e to all.

6

Our country's p r a c t i c a l p r o g r a m is a m a t t e r of record.
It
is not a static thing.
It is not a p o s s e s s i o n of a n y single
group.
It e x p r e s s e s the p h i l o s o p h y
f a d e m o c r a t i c people, a c t i n g
through their e l e c t e d r e p r e s e n t a t i v e s .
Its obj e c t i v e is the
attainment of peace a nd freedom.

6

To that end, y o u r G o v e r n m e n t h a s g i v e n aid to the free
peoples of Europe, b o t h e c o n o m i c and, w h ere n e c e s s a r y , m i l i t a r y .
They have m a d e good use of it.
I t a l y and F r a n c e t u rned b a c k the
supreme effort of the communists to capture their governments.
The Greeks t r i u m p h e d a g a i n s t c o m m u n i s m in a b i t t e r civil w a r
fomented f r o m b e y o n d their borders.
Turkey, w i t h A m e r i c a n help,
stood fast a g a i n s t i m m i n e n t t h r e a t s . N o w free E u r o p e is u n i t e d
militarily f or c o m m o n defense, through the A t l a n t i c Pact, and
soon will be s t r o n g e n o u g h to. mak e a n y a g g r e s s o r s t h ink w e l l
before t h e y attack.
In the Pacific, too, the free n a t ions have b e e n d r a w n
together a n d ^ s t e p s h a v e b e e n t a k e n for unified, defense.
The U n i t e d
Na t i o n s ’ a c t i o n in K o r e a has d e m o n s t r a t e d b e y o n d a s h a d o w of a
doubt the d e t e r m i n a t i o n of the p e o ples of the free w o r l d to put an
end to aggression.

238
- k

-

Our p r o g r a m has b e e n to b i n d free pe o p l e s of the w o r l d for
mutual p r o t e c t i o n and for a d v a n c e m e n t of those valu e s w h i c h we
h a v e 'learned are e s s e n t i a l if i n d i v i d u a l h u m a n beings are to
realize their great e s t capacities.
That p r o g r a m has b e e n
successful.
We hav e s u p p o r t e d it h e r e at h o m e b y p r a c t i c i n g
what we preach.
We h a v e r e e n f o r c e d o ur f a i t h b y effort.
Americans h a v e r a i s e d t h eir s t a ndard of l i v i n g b y a m i r a c l e of
production.
W e a c c o m p l i s h e d the t r a n s i t i o n f r o m a n a l l - o u t w a r
effort to a full p e a c e t i m e p r o d u c t i o n e f fort w i t h a m i n i m u m of
disruption.
W e n o w h a v e m o r e p e ople e m p l o y e d t h a n e v e r before.
The average s p e n dable income p e r person, a f t e r taxes a nd after*
talcing into a c c o u n t changes in prices, buys a p p r o x i m a t e l y Kofo
more in a c t u a l goods a nd services t h a n just p r i o r to W o r l d W a r II.
These facts, and others like them, give us con f i d e n c e that we can
meet the t r e m e n d o u s d e m a n d s that h a v e b e e n and are b e i n g m a d e
upon our r e s o u r c e s b y our a s s u m p t i o n of great r e s p o n s i b i l i t y in
world affairs.
L i v i n g up to r e s p o n s i b i l i t i e s o f t e n re q u i r e s the use of
self-control and, at times, a r eal m e a s u r e of sacrifice.
B ut
Americans k n o w h o w to e x e r c i s e s e lf-control.
One i n d i c a t i o n of
this is the fact that so m a n y A m e r i c a n families s y s t e m a t i c a l l y
build savings b y p u t t i n g p art of t h eir income into savings
accounts, insurance, savings bonds a nd other t h r i f t y investments.
I
believe that the o v e r w h e l m i n g m a j o r i t y of our citizens not
only are w i l l i n g to support p r u d e n t po l i c i e s but insist u p o n
them.
That is the r e a s o n w h y the Pre s i d e n t an d I h a v e a d v o c a t e d
as strongly as p o s s i b l e p a y m e n t of d e f e n s e as w e l l as o r d i n a r y
government e x p e n d i t u r e s out of current r e v enue and h a v e u r ged
taxes that w i l l support that policy.
These m e a s u r e s h a v e as
their objectives the s t r e n g t h e n i n g of our w h ole economy.
We h ave great r e s p o n s i b i l i t i e s a nd great duties, b o t h to
ourselves and to o ur n e i g h b o r s w h o s e f r i e n d s h i p is so i m p o r t a n t to
our defense and to our p r o s p e c t s for w o r l d peace.
A strong
American e c o n o m y is our basic and m o s t e s s e n t i a l r e s o u r c e in
a world-wide strug g l e to m a k e p o s s i b l e the su r v i v a l of free p e onies
ana to achieve p e a c e .
A few m i n u t e s ago I said that e a c h one of us can m a k e a
special c o n t r i b u t i o n to our c o u n t r y in this p r e s e n t p e r i o d of
threat to our w a y of life.
N o t all of us w i l l be called u p o n to
snoulder arms for the d e f e n s e of freedom.
N ot all of us w i l l e v e n

239
- 5 have a job h e r e at h o m e w h i c h w i l l be m a r k e d w i t h the label
"military
or
d e f e n s e . ” B u t each of us has a job to h e l p p r o t e c t
and increase the N a t i o n ' s p r o d u c t i v e s t r e n g t h and capacity.
The
productive m a c h i n e r y of this N a t i o n is the m o s t i m p o r t a n t w e a p o n
in the a r s e n a l of the entire free world.

1

Individually, e a c h of us can p e r f o r m h i s job in a n u m b e r of
ways; a nd u n d e r the p r e s e n t circumstances, there is n o t h i n g we
can do w h i c h is m ore i m p o r t a n t t han to p r e v e n t i n f l a t i o n f r o m
gaining h e a d w a y in our economy.
I
k n o w that e v e r y o n e of y o u is w e l l aware of the u n d e r m i n i n g
influence that i n f l a t i o n a r y p r e s s u r e s could have on the p r o d u c t i v e
power of the Nation, if left unchecked.
Since the o u t b r e a k of
aggression in Korea, there has b e e n w i d e s p r e a d r e c o g n i t i o n of the
dangers of i n f l a t i o n a m o n g our people.
Now, h o w e v e r -- b e c a u s e
there has b e e n a r e l a t i v e s t a b i l i z a t i o n of p r ices in r e cent
months -~ there is a t e n d e n c y in some quarters to t h i n k that the
inflationary trend h as ended.
This is not the case.
The i m p o r t a n t fact is that in the m o n t h s a h e a d n a t i o n a l
security e x p e n d i t u r e s w i l l a c c e l e r a t e rapidly.
Military production
is just g e t t i n g into its stride; to date, it h as b e e n l a r g e l y in
a preparatory stage.
As the m o b i l i z a t i o n effort is st e p p e d up,
a growing p o r t i o n of the t o tal output of the c o u n t r y will, of
necessity, be d i r e c t e d towa r d the .fulfilment of our d e f e n s e needs,
A year ago, we were s p e n d i n g for de f e n s e at a n a n n u a l rate
of about $15 billion.
T his rate h as m o r e t han d o u b l e d -- to
about vp35 b i l l i o n - a t the p r e s e n t time; a nd it is estimated that
by another y e a r -- b y the m i d d l e of
-- e x p e n d i t u r e s for
defense a n d r e l a t e d items w i l l a p p r o a c h
billion.
B y that
time, they w i l l a p p r o a c h o n e - f i f t h of the n a t i o n a l p r o d u c t of our
economy.
The m e a n i n g of this is clear.
We cannot u n d e r t a k e the
full p r o g r a m w h i c h is n e c e s s a r y to pr o v i d e a d e q u a t e s e c u r i t y to
our people without, of necessity, p r o d u c i n g n e w i n f l a t i o n a r y
pressures.
If left u ncontrolled, these pre s s u r e s could s e r i o u s l y
cripple our de f e n s e e f f o r t .

1952

$65

The first e s s e n t i a l is a p a y - a s - w e - g o p r o g r a m for the F e d e r a l
government. F o r this purpose, we w i l l n e e d an a d e q u a t e r e v enue
Program, one w h i c h w i l l cover our F e d e r a l e x p e n d i t u r e s to the
greatest e x t e n t p o s s i b l e d u r i n g the de f e n s e build-up.

In a d d i t i o n to a n a p p r o p r i a t e r e v enue system, we m u s t
maintain a b r o a d o v e r - a l l a n t i - i n f l a t i o n program.
An important •
part of such a p r o g r a m i n v olves m e a s u r e s d e s i g n e d to r e s t r a i n
credit e x p a n s i o n in areas outside the de f e n s e p r o g r a m an d outside
essential c i v i l i a n requi r e m e n t s .
The n a t i o n w i d e v o l u n t a r y credit
restraint p r o g r a m u n d e r t a k e n b y b a n k i n g groups an d o t her lenders
under a u t h o r i t y of the D e f e n s e P r o d u c t i o n Act is a s i g n i f i c a n t
step in this direction.
Further, it is m o s t d e s i r a b l e that e v e r y A m e r i c a n commit
himself to a p r o g r a m of i n c r e a s e d savings.
It is clear that
greatly in c r e a s e d savings are r e q u i r e d if we are to s u c c e e d in
cutting d o w n i n f l a t i o n a r y spending.
This is a p a r t of the p r o g r a m to m a i n t a i n the e c o n o m i c
strength of the N a t i o n in w h i c h al l of us can p a r t i c i p a t e directly.
A new stimulus to n a t i o n - w i d e savings w i l l be i n a u g u r a t e d b y the
Treasury w h e n it opens the n e w D e f e n s e B o n d c a m p a i g n in
Grand Rapids, Michigan, on L a b o r Day.
There is another, a m o r e p e r s o n a l a s p e c t to i n c r e a s i n g our
savings at this time.
W h e n e m p l o y m e n t and incomes are at r e c o r d
levels - - a s t h e y are n o w -- indi v i d u a l s are g i ven a n e x c e p t i o n a l
opportunity for b u i l d i n g up their f i n a n c i a l reserves.
This h a p p e n e d d u r i n g W o r l d W a r II.
The r e s e r v e s b u i l t up
during the w a r y e ars h a v e b e e n a n i m p ortant f a c t o r in m a i n t a i n i n g
the p r o s p e r i t y w h i c h we h a v e e n j o y e d since the end of the war.
The feeling of s e c u r i t y w h i c h this b a c k l o g of p u r c h a s i n g p o w e r
provides h as m a d e people w i l l i n g to b u y out of current incomes the
vast and v a r i e d output of c i v i l i a n goods w h i c h h a s p o u r e d f o rth
from our industries.
The same t h i n g can h a p p e n a f t e r the p r e s e n t u r gent r e q u i r e ­
ments^ of our de f e n s e effo r t h a v e b e e n met.
W h e n l a bor and
materials are r e l e a s e d f r o m the d e f ense program, the f i n a n c i a l
reserves w h i c h we p ut a s ide out of t o d a y ’s h i g h incomes w i l l be
available to a u g m e n t the p u r c h a s i n g p o w e r of current incomes, to
prolong p r o s p e r i t y b y p r o v i d i n g m a r k e t s for our great p r o d u c t i o n
capacity,
The outcome of the w o r l d - w i d e struggle for f r e e d o m w i l l d e p e n d
in very large part on the f u n d a m e n t a l s t r e n g t h of our economy.
The economic e x p a n s i o n in this c o u n t r y in the last te n to twelve
years -- in the w a r y e ars and in the p o s t w a r p e r i o d -- has b e e n
a truly r e m a r k a b l e d e m o n s t r a t i o n of the p o w e r an d v i t a l i t y of

241
~ 7 our free enterprise system.
Nowhere else in the world has
a comparable record been achieved.
The supremacy of our
productive power and its potential for defense output is
unquestioned.
These facts provide the foundation for our faith in the
future. So long as he and his fellows work together in unity and
sureness of purpose, the American of 1951 can face his future
with all confidence,

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 bZ and 117 (a) (1) of the Internal Revenue Code,

as amended by Section 11$ of the Revenue Act of 19Ul, the amount of^ discount at
which bills issued hereunder are sold shall not be considered to accrue until
such bills shall be sold, redeemed or otherwise disposed of, and such bills are
excluded from consideration as capital assets.

Accordingly, the owner of

Treasury bills (other than life insurance companies) issued hereunder need in­
clude in his income tax return only the difference between the price paid for
such bills, whether on original issue or on subsequent purchase, and the amount
actually received either upon sale or redemption at maturity during the taxable
year for which the return is made, as ordinary gain or loss.

8

Treasury Department Circular No. Ul , 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 ov 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

September

6» 1951

» in cash or other immediately avail.-!

able funds or in a like face amount of Treasury bills maturing September
Cash and exchange tenders will receive equal treatment.

6. 1951,

Cash adjustments will bej

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 froh

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

m

m

m

TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,

Tuesday, August 28. 1951

V

The Secretary of the Treasury, by this public notice, invites tenders for
$ 1,100,000,000 , or thereabouts, of

iSjt

91

.ssr

-day Treasury bills, for cash and

6

in exchange for Treasury bills maturing

September , 1951
, to be issued on
fkjt
a discount basis under competitive and non-competitive bidding as hereinafter

6

provided.

The bills of this series vo.ll be dated

vn.ll mature

December , 1951
---- ^ --------------They v d ll be issued in bearer form only, and in denominations of

interest.

September , 1951
, and
""lEST”
, when the face amount vo.ll be payable vrithout

6

1 000, $ 5,000, $ 10,000, $ 100,000, $500,000,

$ ,

1 000,000

and $ ,

(maturity value).

Tenders vrill be received at Federal Reserve Banks and Branches up to the
Daylight Saving
closing hour, two o ’clock p.m., Eastern/Sttexisiaari: time> Friday, August 31, 1951»
Tenders will not be received at the Treasury Department, Washington.

1 000,

must be for an even multiple of $ ,

and in the case of competitive tenders

the price offered must be expressed on the basis of
decimals, e. g., 99*925»

Each tender

Fractions may not be used.

100, with

not more than three

It is urged that tenders

be made on the printed forms and forwarded in the special envelopes which will
be supplied by Federal Reserve Banks or Branches on application therefor.
Others than banking institutions will not be permitted to submit tenders
except for their own account.

Tenders will be received without deposit from

incorporated banks and trust companies and from responsible and recognized
dealers in investment securities.

Tenders 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 .

RELEASE M O R N I N G NEWSPAPERS,

Tuesday, August 28, 1951,

S-2791

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 September 6 ,
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 September 6 , 1951, and will mature December 6 ,
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 ,000 , $ 1 0 ,0 0 0 , $ 1 0 0 ,0 0 0 , $ 5 0 0 ,0 0 0 , and $ 1 ,0 0 0 ,0 0 0 (maturity value).
Tenders, will be received at Federal Reserve Banks and Branches
up to the closing hour two o ’clock, p.m., Eastern Daylight Saving
time, Friday, August 31, 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., 99*925.
Fractions may not be used.
It is
urged that tenders be made on the printed forms and forwarded in the
special envelopes which will be supplied by Federal Reserve Banks
or Branches on application therefor.
Others than banking institutions will not be permitted to submit
tenders except for their own account.
Tenders will be received
without deposit from incorporated banks and trust companies and from
responsible and recognized dealers in investment securities.
Tenders
from others must be accompanied by payment of 2 percent of the face
amount of Treasury bills applied for, unless the tenders are
accompanied by an express guaranty of payment by an Incorporated bank
or trust company.
Immediately after the closing hour, tenders will bo opened at
the Federal Reserve Banks and Branches, following which public
announcement will be made by the Secretary of the Treasury of the
amount and price range of accepted b i d s . Those submitting tenders
will be advised of the acceptance or rejection thereof.
The
Secretary of the Treasury expressly reserves the right to accept or
reject any or all tenders,in whole or in part, and his action in any
such respect shall be final.
Subject to these reservations, non­
competitive tenders for $ 200,000 o r * less without stated price front
any one bidder will be accepted in full at the average price (in

2
three decimals) of accepted competitive bids.
Settlement for
accepted tenders in'accordance with the bids must be made or
completed at the Federal Reserve Bank on September 6 , 1951, in cash
or other immediately available funds or in a like face amount of
Treasury bills maturing September 6 , 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 d e r i v e d from T r e a s u r y b i l l s , w h e t h e r interest or gain
fro m 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, an d loss f r o m the sale or other d i s p o s i t i o n of
T r e a s u r y bills shall not hav e a n y s p e c i a l treatment, as such, under
the I n t e r n a l Re v e n u e Code, or laws a m e n d a t o r y or s u p p l e m e n t a r y
thereto.
The bills shall be subject to estate, inheritance, gift
or o t her e x c i s e taxes, w h e t h e r F e d e r a l or State, but shall be
exem p t f r o m all t a x a t i o n n o w or h e r e a f t e r i m p osed on the principal
or in t e r e s t th e r e o f b y a n y State, or a n y of the p o s s e s s i o n s of the
U n i t e d States, or by a n y local t a x i n g authority.
F o r p u r poses 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 shall be c o n s i d e r e d to be
interest.
U n d e r Sections. 42 and 117 (a) (1) 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 Re 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 issu e d h e r e u n d q r are sold shall not
be c o n s i d e r e d to accr u e u n til such bills shall be sold, redeemed or
o t h e r w i s e d i s p o s e d of, and such bills are e x c l u d e d f r o m consideration
as ca o i t a l assets. .Accordingly, the owner of T r e a s u r y bills (other
than life i n s u r a n c e companies) i s sued h e r e u n d e r n e e d include in his
income tax r e t u r n o n l y the d i f f e r e n c e b e t w e e n the p r i c e pai d for
such bills, w h e t h e r orx 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 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.

I

■ H W

Treasury Department Circular No. 4l8, as amended, and this
notice, prescribe the terms of the Treasury bills and govern the
conditions of their issue.
Copies of the circular may be obtained
from any Federal Reserve Bank or Branch.

oOo
■

T W E A s ujrV

d e p a r t m e n t

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The -S e cre ta ry of the T reasiir twiftfcWfc<»*> #t4i.’»»fcaJtrntfULi%o tllaritofrhKf?
1-1,4
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accepted
- 1,100,8 3 6 ,000 (inc iiidos
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fwftaoopA

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-■ ariKLim
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100

•f

'dfik

s-JL V

RELEASE KOHOHG KHBSPAPEKS,
Ta«sd^jr, August 28, 1951.
Th©

Sec r e t a r y

o f

th© Treasury announced last evening that the tenders for

$1,100,000,000, or thereabouts, of 91~day Treasury bills to be dated August 30 and
to mature November 29, 1951, which were offered on August 23, were opened at the
Federal Reserve Banks on August 27«
The details of this issue are as follows)
Total applied for - $1,993,093,000
Total accepted
« 1*100,836,000

Average price

(includes $132,$24,000 entered o n a
non-competitive basis and accepted in
full at the average price shown below)
- 99*584/ Equivalent rate of discount approx, 1.645$ per annua

Range of accepted competitive bids)
High
Low

- 99*608

» 99*582

Equivalent rate of discount approx. 1,551$ per annua

«

«

«

«

«

i#654$ »

(2$ percent of the amount bid fo r at the low price was accepted)
Federal Reserve
District

Total
Applied for

Total
Accepted

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

$
10,992,000
1*434*356,000
26,461,000
44,193#000
11,984,000
2?,772,000
257,850,000
20,353,000
3,995,000
37,048,000
31,189,000
91,440,000

,

W.,998,093,000

$1,100,836,000

Total

9,432,000
707,506,000
10,574,000
36,193,000
10,459/500
16,342,000
182,065,000
17,278,000
3,565,000
33,848,000
18,089,000
55,465,000

»

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 ,000,000, or thereabouts, of 9 1 - d a y T r e a s u r y bills
to be dated A u g u s t 30 a nd to m a t u r e N o v e m b e r 29, 1951, w h i c h were
offered on A u g u s t 23, wer e o p ened at the F e d e r a l R e s e r v e B a n k s on
August 27.
The d e tails

of this issue are as follows:

Total a p p l i e d for - $ 1 , 9 9 8 , 0 9 3 , 0 0 0
Total a c c e p t e d
1,100,836,000

A v e rage price

(includes $ 1 3 2 , 4 2 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
basis a nd a c c e p t e d in full
at the av e r a g e price s h own
below)
- 9 9 . 5 8 4 / E q u i v a l e n t rate of d i s c o u n t approx.
1.645$ p e r a n n u m

Range of a c c e p t e d

c o m p etitive bids

H igh

- 99.6o8

E q u i v a l e n t rate of d i s c o u n t approx.
1 . 551$ per a n n u m
- 99.582
E q u i v a l e n t rate of d i s c o u n t approx.'
1.654$ p e r a n n u m

Low

(25

p e r cent of the a m o u n t bi d for at the low price was accepted)

Federal Reserve
District
Boston
New Y o r k
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
Shn Francisco
TOTAL

Total
A p p l i e d for

$

1 0 ,9 5 2 ,0 0 0
1,434,856,000
26.461.000
44.193.000
11.984
27.772.000

.000

2 5 7 ,8 5 0 ,0 0 0
20.353.000
3,995,000
37.048.000

Total .
Accepted
$

9,452,000

707,506,000
10.574.000
36.193.000
10.459.000
16.342.000

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

91,440,000

33.848.000
.
55,465,000'

$1,998,093,000

$ 1 ,100 ,836,000

31 .189.000

0O0

18 089.000

2

c o in s remained in c i r c u l a t i o n .

D uring the month o f J u ly

7 4 ,5 3 3 ,5 0 0 pen n ies were m anufactured, w ith the m ints
o p e ra tin g on a six ty -h o u r work week.

On t h i s overtim e b a s i s ,

i t would r e q u ire f i v e f u l l months o f work to produce the
3 8 7 ,8 8 0 ,0 0 0 pen n ies th a t could be reco v ered i f American
f a m ilie s co o p erated even to the e x te n t o f ten pen n ies each
retu rn ed to c i r c u l a t i o n ."
A s im ila r a p p e a l made by D ir e c to r Ross l a s t sp r in g
brought la r g e q u a n t it ie s o f pen n ies in to the channels o f
trad e .

One V ir g in ia woman, ac c o rd in g to newspaper ac c o u n ts,

d e p o site d in to h er bank account over 45,0 0 0 pen n ies she
had accu m u lated .
Coins o f a l l denom inations d e liv e r e d by the Mint during
the month o f J u ly t o t a le d 1 4 4 ,7 5 9 ,8 9 2 , o f which 9 4 ,4 9 3 ,0 0 0
were p e n n ie s.

Coin d e l i v e r i e s d u rin g the comparable p e rio d

in 1 9 5 0 , b e fo re the im pact o f the d e fe n se e f f o r t had been
f e l t , t o t a le d 9 5 , 1 9 9 ,5 7 5 p ie c e s , o f which 5 9 ,2 1 0 ,0 0 0 were
p e n n ie s.
A fte r acco u n tin g f o r worn pen n ies se n t back to the Treasury
throughout the y e a rs f o r r e m e ltin g , and making a t t r i t i o n
a llo w a n c e s, the Mint e s tim a te s th a t over 17 b i l l i o n onecén t p ie c e s a re now in c i r c u l a t i o n .
ftflfITOTieel 5 6 ,0 0 0 ton s o f copper.
0O0

These co in s co n tain -en -

TO:

HP-

information

SERVICE

s

1 I «i
7 * ?

y
2

?

U 3

V>^>

PROPOSED PRESS RELEASE

N e llie Tayloe R o ss, D ir e c to r o f the M int, today renewed
¿ s * t a 11

h er p le a th a t a l l ^ c o i n s , e s p e c i a l l y one-cent p ie c e s , now
"h id in g ” in c h ild r e n ’ s hanks and o th er household d e p o s ito r ie s ,
he retu rn ed to c ir c u l a t i o n .
The r e tu r n to b u sin e ss use o f th e se id l e c o in s ,
D ir e c to r R oss s a i d , would save the m a te r ia l and m anufacturing
c o s t s o f r e p la c in g them and, a t the same tim e, conserve tons
o f m e tals v i t a l to the d e fe n se e f f o r t .

She su g g e ste d th a t

t h r i f t accu m u lation s o f sm all co in s he converted in to
D efense S av in gs Stamps and Bonds, turned in to hanks fo r
o th er cu rren cy, Or used in making p u r c h a s e s.
The h ig worry now i s the su pply o f p e n n ie s, d e sc rib e d
by the Mint a s the "N a tio n ’ s most u sed and u s e f u l c o in ."
The re c e n t heavy demand f o r one-cent p ie c e s , which r e f l e c t s
the high le v e l o f b u sin e ss a c t i v i t y , i s r e q u ir in g the m ints
to o p e rate on an overtim e and e x tr a s h i f t b a s i s .

F e d e ra l

R eserve Banks have a l s o been r a tio n in g pennies to t h e ir
b ra n c h e s.
" I f each o f the e stim ate d 3 8 ,7 8 3 ,0 0 0 American
f a m ilie s should r e le a s e from h id in g and re tu rn to b u sin e ss
u se ju s t ten one-cent p i e c e s ," D ir e c to r Ross s a i d , "o v er 1,260
ton s o f sc a r c e copper would be sav e d , p ro v id in g , o f c o u rse , that t

TR EA SU R Y D EPA R TM EN T
Information Service

WASHINGTON,

IMMEDIATE RELEASE,
Wednesday, A u g u s t 29, 1951.

S-2793

N e l l i e T a yloe Ross, D i r e c t o r of the Mint, t o d a y r e n e w e d h e r
plea that all small coins, e s p e c i a l l y one-cent pieces, n ow
"hiding” in c h i l dren's hanks and other h o u s e h o l d depos i t o r i e s , be
returned to circulation.
The r e t u r n to bu s i n e s s use of these idle coins, D i r e c t o r Ross
said, w o u l d save the m a t e r i a l and m a n u f a c t u r i n g costs of r e p l a c i n g
them and, at the same time, conserve tons of m e t a l s v i t a l to the
defense effort.
She s u g g e s t e d that thrift a c c u m u l a t i o n s of small
coins be co n v e r t e d i nto D e f e n s e Savings -Stamps a nd Bonds, turned
into banks for o t h e r currency, or used in m a k i n g purchases.
The b i g w o r r y n o w is the s u p p l y of pennies, d e s c r i b e d b y the
Mint as the "Nation's m o s t used, a n d u s e f u l coin."
The recent
heavy d e m a n d for o n e -cent pieces, w h i c h reflects the h i g h level
of business activity, is r e q u i r i n g the m i n t s to operate on an
overtime and e x tra shift basis.
F e d e r a l R e s e r v e B a n k s h a v e also
been r a t i o n i n g p e nnies to their branches.

38 788,000

"If e a c h of the e s t i m a t e d
,
A m e r i c a n fa m i l i e s should
release f rom h i d i n g and r e t u r n to busin e s s use just ten o n e - c e n t
pieces," D i r e c t o r Ross said, "over 1,260 tons of scarce copper
would be saved, providing, of c o u r s e y that the coins r e m a i n e d in
circulation.
D u r i n g the m o n t h of J u l y 7 4 , 5 3 3 , 5 0 0 pe n n i e s were
manufactured, w i t h the m i n t s o p e r a t i n g on a s i x t y - h o u r w o r k week.
On this overtime basis, it w o u l d require five full m o n t h s of w o r k
to produce the
*
p e n nies that could be r e c o v e r e d if
American families c o o p e r a t e d e v e n to the exte n t of t en pennies
each r e t u r n e d to circulation."

387 880,000

A s i m ilar a p p e a l m ade by D i r e c t o r Ross last s p ring b r o u g h t
large q u a n t i t i e s of p e n nies into the channels of trade.
One
Virginia woman, a c c o r d i n g to n e w s p a p e r accounts, d e p o s i t e d into
her bank ac c o u n t over 4 5 * 0 0 0 p e n n i e s she h a d a ccumulated.
Coins of a ll d e n o m i n a t i o n s d e l i v e r e d by the M i n t d u r i n g the
month of J u l y totaled 144,759,892, of w h i c h .94,493,000 were
pennies.
Coi n d e l i v e r i e s d u r i n g the comparable p e r i o d in 1950,
before the impact of the de f e n s e effort h a d b e e n felt, totaled
95*199*575 pieces, of w h i c h
,
were pennies.

59 210,000

A f t e r a c c o u n t i n g for w o r n p e n nies sent b a c k to the T r e a s u r y
throughout the years for remelting, and m a k i n g a t t r i t i o n allowances,
the Mint es t i m a t e s that over
b i l l i o n on e - c e n t p i e c e s are n o w in
circulation.
These coins c o n t a i n a p p r o x i m a t e l y - ,000 tons of
copper.

17

56

0O0

Walter Reuther,^of the Xa,tiPmn'WwwIi United Automobile Workers, C.I.O.,
George Leighty, Chairman, Railway Labor Executives Association, and
Lewis Hines, International Representative, A.F. of L.

Representations

of the Armed Forces will include Major General Harry A. Johnson of the
Air Force, Major General Samuel L. Howard of the U. S. Marine Coips,
Rear Admiral Francis P. Old of the Navy, Rear Admiral Roy L. Raney of
the Coast Guard, Colonel Mary A. Hallaren of the WAC, Major Elizabeth
Roache of the WAF, Lieutenant Commander Nancy B. Long of the WAVES, and
Captain Mary MacDonald of the Wom^n Marines.
Treasury representatives at Grand Rapids, in addition to Secretary
Snyder, will be Edward F. Bartelt, Fiscal Assistant Secretary; Nellie
Tayloe Ross, Director of the Mint; Mrs. Georgia Neese Clark, Treasurer
of the United States, and Vernon L. Clark, national director of the Savings
Bonds Division.

The radio program^ will present a variety of features prior to the
addresses of the President and the Secretary, including remarks by Korean
Medal of Honor winners and by high officers of the Army, Navy and Air Force.
Grand Rapids will have a round of festivities and demonstrations in
addition to the radio program.

These will include a two-hour parade in

the morning, in which 2,000 members of the Armed Forces will march; a great
picnic in Ramona Park; exhibitions of weapons and equipment by the Army
and the Coast Guard; and a MPower for Peacen military pageant in the evening.
Jet planes from Selfridge Field will form an aerial cover over the
parade route, and at night the Army will stage a demonstration of a
simulated field attack.

During the picnic, the Coast Guard will demonstrate

an air-sea rescue by helicopter on the park lake.
Speakers during the day will include labor leaders; Governor G. Mennen
Williams and U. S. Senator Blair Moody of Michigan, Mayor
Grand Rapids and Lieutenant

Anthony McAuliffe, Assistant Chief of
A

Staff of the Army.

of

A d d resses by P r e sid e n t Truman and S e c r e ta r y o f the
T re asu ry Snyder w i ll be heard over f iv ^ \ networks when
the D efense Bond D rive i s launched on Labor Day in
Grand R ap id s, M ichigan, i t was announced today.

The

D efense Bond D rive cerem onies w i ll be h eld a t Grand
R ap ids a s p a r t o f a huge Labor Day c e le b r a tio n th e re .
The cerem onies a re to be sponsored j o i n t l y by the
Department o f D efense and the T reasu ry D epartm ent/
and^the American F e d e ra tio n o f Labor, the C ongress
A
o f I n d u s t r i a l O rg a n iz a tio n s/ and the R a ilro a d
B roth erh oods.
San F r a n c isc o .

P r e sid e n t Truman w i ll speak from

T R E A S U R Y D EP A R TM EN T
Information Service

WASHINGTON, D .C .

255
IMMEDIATE RELEASE,
Thursday, A u g u s t 30,

1951

S-2794

A d d r e s s e s b y P r e s i d e n t T r u m a n a nd S e c r e t a r y of the T r e a s u r y
Snyder w i l l be h e a r d over five r a dio n e t w o r k s w h e n the D e f e n s e
Bond Drive is l a u n c h e d on L a b o r D a y in Grand Rapids, Michigan, it
was announced today.
The D e f e n s e B o n d D r i v e c e r e m o n i e s w i l l be
held at Grand R a p i d s as p art of a hug e L a bor D a y c e l e b r a t i o n
there.
The cere m o n i e s are to be s p o nsored jointly b y the
Department of D e f e n s e a nd the T r e a s u r y D e p a r t m e n t a nd b y the
American F e d e r a t i o n of Labor, the Congress of I n d u s t r i a l
Organizations a n d the R a i l r o a d B r o t h e r h o o d s .
President Truman
will speak f r o m S an Francisco.
The r a dio p r o g r a m w i l l p r e s e n t a v a r i e t y of f e a t u r e s p r i o r
to the a d d r e s s e s of the P r e s i d e n t and the Secretary, i n c l u d i n g
remarks b y K o r e a n M e d a l of H o n o r w i n n e r s a nd b y h i g h officers of
the Army, W a v y a n d A i r F o r c e .
Grand R a p i d s w i l l h ave a round of f e s t i v i t i e s an d d e m o n ­
strations in a d d i t i o n to the r a d i o program.
These w i l l include
a two-hour p a r a d e in the morni n g , in w h i c h
m e m b e r s of the
Armed Forces w i l l march] a great p i c n i c in R a m o n a Park; e x h i b i t i o n s
of weapons a n d e q u i p m e n t b y the A r m y a nd the Coast Guard; a n d a
"Power for Peace" m i l i t a r y p a g e a n t in the evening.

2,000

Jet p l a n e s f r o m S e l f r i d g e F i e l d w i l l f orm a n
over the p a r a d e route, a nd at night the A r m y w i l l
stration of a s i m u l a t e d field attack.
D u r i n g the
Coast Guard w i l l d e m o n s t r a t e a n a i r - s e a rescue b y
the park l a k e .

a e r i a l cover
stage a d e m o n ­
picnic, the
h e l i c o p t e r on

S p e a k e r s 'd u r i n g the d a y w i l l include labor leaders, G o v e r n o r
G. Mennen W i l l i a m s a n d U. S. S e n a t o r B l a i r M o o d y of Michigan,
Mayor Paul G. G o ebel of Grand R a pids an d L i e u t e n a n t G e n e r a l
Anthony M cAuliffe, A s s i s t a n t C h ief of Staff of the Army.
R e p r e s e n t i n g labor in l a u n c h i n g the D e f e n s e B o nds D r i v e w i l l
be Walter Reuther, P r e s i d e n t of the U n i t e d A u t o m o b i l e Workers,
G . I . O . , George Leighty, Chairman, R a i l w a y L a b o r E x e c u t i v e s
Association, and Lewis Hines, I n t e r n a t i o n a l R e p r e s e n t a t i v e , .
A.F. of L.
R e p r e s e n t a t i v e s of the A r m e d F o r c e s w i l l include

256

-

2

-

Maior G e n e r a l H a r r y A. J o h n s o n of the A i r Force, M a j o r G e n e r a l
Samuel L. H o w a r d of the U. S, M a r i n e Corps, Rea r A d m i r a l
Francis P. Old of the Navy, R e a r A d m i r a l R o y L. R a n e y of the
Coast Guard, C o l o n e l M a r y A. H a l l a r e n of the ¥AC, M a j o r E l i z a b e t h
Roache o f the WAF, L i e u t e n a n t C o m m a n d e r N a n c y B. L o n g of the
.
i__ j — iu r _ _ ____
ív T y fl
A -p
4- V, /-a "UT/-im o t i M o T n ' n o a
WAVES, am d C a p t a i n M a r y M a c D o n a l d of the W o m a n M a r i n e s .
T r e a s u r y r e p r e s e n t a t i v e s at G r a n d Rapids, in a d d i t i o n to
Secretary Snyder, w i l l be E d w a r d F. Bartplt, F i s c a l A s s i s t a n t
Secretary- N e l l i e Tayloe Ross, D i r e c t o r of the Mint;
Mrs G e o rgia N e e s e Clark, T r e a s u r e r of the U n i t e d States, and
Vernon L. Clark, n a t i o n a l d i r e c t o r of the Savings B o n d s D i v i sion.

oOo

release,

Saturday,

ummiQ »

spumrs*

7 7

ft

The Secretary of the Treasury announced la s t evening that the tenders for
$1,100,000,000, or thereabouts, of 91-day Treasury b i lls to be dated September 6 aid to
mature December 6, 195>1* which were offered on August 23, were opened at the Federal
Reserve Banks on August 31«
The d e tails of th is issue are as follows:
Total applied jfor L *1,91?,893,000y
Total accepted
- 1,102,635,OCX) *
/
/
Average Price
- 99*5§b Equivalent

/
(includes $110,369,000 entered on a
non-competitive b asis and accepted in
f u ll at the average price ahcwnj&elow)
rate of discount approx. l»6ii&£ per annum

Hangs of accepted competitive bids:

/

„/

/

Rigfa

- 99*601 Equivalent rate of discount approx. 1.578$ per annua

Low

- 99*533^

*

*

*

*

■

1.650$* *

y

_

,

(96 percent of the mmw%bid for a t the lov price was accepted)
Federal Reserve
D istrict

Total
Applied fo r

Total
Accepted

Boston
Sew York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St* Louis
Minneapolis
Kansas City
Dallas
San Francisco

|

|

21, £¡10,000
1,1*36,082,000
22,1*92,000
M-,330,000
12,355,000

11,991,000

192,859,000

88,117,000

11,010,000
k ,725,000
1*9,162,000
16,880,000
61*. 720,000

11,917,893,000

*1,102,635,000

15,606,000
1*. 727,000
51,171*, 000
19,920,000

TOTAL

h)*

0

12,620,000
756,580,000
S,il*l*, ooo
33,838,ex»
30,223,000
9,971,000
127,762,000

*

TR EA SU R Y D EPA R TM EN T
Information Service
release m o r n i n g

Saturday,

WASHINGTON, D .C .

258

newspapers,

S e p t e m b e r 1,

S - 2795

1951.

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 $1,100, 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 dated S e p t e m b e r
and to m a t u r e D e c e m b e r
, 1951* w h i c h were
offered on A u g u s t 28, were opened at the F e d e r a l R e s e r v e B a n k s on
August 31*

6

The details

6

of this issue are as follows:

Total a p p l i e d for - $ 1 , 9 1 7 , 8 9 3 , 0 0 0
Total a c c e p t e d
1,102,6.35,000

Average Price

- - 99.5 8 4 E q u i v a l e n t rate of d i s c o u n t approx.
1.646# p e r a n n u m

-

99.601

E q u i v a l e n t rate
.
#
- 9 9 .583 E q u i v a l e n t rate
I.
O#

High
Low

(96

(includes $ 1 1 0 , 3 6 9 , 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 price s h o w n
below)

1 578
65

of d i s c o u n t approx.
p er a n n u m
of d i s c o u n t approx.
p er a n n u m

percent of the a m o u n t bid for at the low price was accepted)

Boston

$

New York
Philadelphia

Cleveland
Richmond
Atlanta.

Total
Accepted

Total
A p p l i e d for

Federal Re s e r v e
District

21,240,000
1,436,082,000
22.492.000
41.330.000

$

12,620,000

756,580,000
5.144.000
33.838.000
.
.
,

.

192,859,000

10 223.000
9 971.000
127 762,000

Ì5,6 o 6,000

11 , 010,000

4,727,000
51.174.000
.
88,117,000

4,725,000
49.162.000

12 355.000

11,991,000

Chicago

S t . L o u is
M inneapolis
Kansas C ity
D allas
San F r a n c is c o

.

19 920.000

TOTAL

$1,917,893,000

16 880.000
64,720,000

1 102,635,000

$ ,

Special committees of B&nd salesmen have been set
up in rural counties of every State to reach farm
homes.

They intend to point out to farmers

the advantage of buying

Defense Bonds to set up

reserves against the depreciation of farm machinery.
In keeping with the theme of the Drive —

that

defense is everybody*s job, and that buying Defense
Bonds is an excellent means of personal participation
in defense —

local military installations throughout

the country are cooperating closely with the Bond volunteer
organizations.
Organized laborfs support of the Defense Bond
Drive is being symbolized in the Labor Day ceremonies
at Grand Rapids.

The ceremonies are being sponsored

jointly by the Defense Department, the Treasury
Department, the American Federation of Labor, the
Railway Labor Executives* Association, and the Congress
of Industrial Organizations

3
President Truman and Secretary Snyder will be
heard over all five networks between^Ç:50 p.m. and
(L

TA:00

p.m., Eastern Standard Time.

Savings Bond volunteer organizations throughout
the country are ready to conduct a vigorous campaign
over the next two months.

Their efforts will be directed

particularly toward commundity activity, including
campaigns to have scores of cities and towns qualify
for the "Defense Bond Flag City" award.

Forty-two

cities and towns already have won this distinction.
The Payroll Savings Plan will be pushed during
the Drive in both large and small concerns in all
industries and businesses.
Women’s divisions of the volunteer organizations,
functioning under the direction of State and county
women chairmen, are ready to canvass thousands of
offices of professional people for bond sales.

Women’s

clubs are concentrating on promotion of the Bond-A-Member
Plan.

2
Medal of Honor winner, and Gen. J. Lawton Collins,
Army Chief of Staff.
The Mutual^Network program will present the Air
Force Band, with talks by Mrs. Louis Sabilie, widow
of an Air Force Korean campaign hero, and Gen. Hoyt S
Vandenberg, Air Force Chief of Staff.
The LBS Network program will present the Coast
Guard Band, with a talk by Vice Admiral Merlin O’Neill
Commandant of the Coast Guard.
The NBC Network program will present the Marine
pOA/v*/!

Corps Band, with talks by Lt. 'Harry A. Commiskey,
A

Medal of Honor winner, and Gen. Clifton B. Cates,
Commandant of the Marine Corps.
The ABC^Jfetwork program will present the Navy
: -/ •, IJO' /■

\

Y

%

VO

'' t

VO O

Of

Y ■'

,i'

|2 ■ if;

if

Band, with talks by Lt. Thomas J. Hudner, Medal of
Honor winner, and Adm. William Fechteler, Chief of
Naval Operations.

91

The Defense Bond Drive, most intensive bond
campaign since the war, opens on Monday —
and will continue through October 27.

Labor Day —

Thousands of

persons are expected to witness ^"kick-offH ceremonies
on Labor Dtry for the Drive in Grand Rapids, Michigan,
and millions will hear addresses by President Truman
and Secretary Snyder in tfrb evening over five radio
networks.

President Truman will speak from San Francisco

and Secretary Snyder from Grand Rapids.
Radio programs will be carried from /$:30 p.m.
to 3(9:00 p.m., Eastern ^t^^faurd Time, over the CBS, L B S ,
aM*—

MBS, NBC

/e

Networks, and fiver the ABC^Nbtwork>

//'if

from #:50 P.m. to lQiat p.m., Eastern

./
Time/

Each network will carry a program by a military band,
with talks by Korean heroes and by top officers of
the Armed Forces.
The CBS^Network program will present the Army Band,
and talks by Sgt. John A. Pittman, Korean campaign

T R E A S U R Y D EP A R TM EN T
Information Service

WASHINGTON, D .C .

263
RELEASE S U N D A Y NEWSPAPERS,
Sfi-pteniber 2, 1951,

S

-2796

The D e f e n s e B o n d Drive, m o s t intensive b o n d c a m p a i g n since
the war, opens on M o n d a y -- L a bor D a y
an d w i l l c o n tinue t h r o u g h
October 27 . T h o u s a n d s of p e r sons are e x p e c t e d to w i t n e s s
Labor D a y "kick-off" c e r e monies for the D r i v e in Grand Rapids,
Michigan, and m i l l i o n s w i l l h e a r a d d r e s s e s by P r e s i d e n t T r u m a n
and Secretary S n y d e r on M o n d a y e v e n i n g over five r a d i o n e t w orks.
President T r u m a n w i l l s p eak f rom San F r a n c i s c o an d S e c r e t a r y
Snyder fro m G r and R a p i d s .
Radio p r o g r a m s w i l l be c a r ried f r o m 10:30 p.m. to 11:00 p.m.,
Eastern D a y l i g h t Time, over the CBS, LBS, MBS, and N B C networks,
and from 10:50 p.m. to 11:15 p.m., E a s t e r n D a y l i g h t Time over
the ABC network.
E a c h n e t w o r k w i l l c a rry a p r o g r a m by a m i l i t a r y
band, with talks b y K o r e a n h e r o e s a nd b y top officers of the
Armed Forces.
The CBS n e t w o r k p r o g r a m w i l l p r e s e n t the A r m y Band, a nd talks
by Sgt. J o h n A. Pittman, K o r e a n c a m p a i g n M e d a l of H o n o r winner,
and General J. L a w t o n Collins, A r m y Chief of Staff.
The LBS n e t w o r k p r o g r a m w i l l p r e s e n t the Coast G u a r d Band,
with a t a l k b y V i c e A d m i r a l M e r l i n O'Neill, C o m m a n d a n t of the
Coast Guard.
The M u t u a l n e t w o r k p r o g r a m w i l l p r e s e n t the A i r Force Band,
with talks b y Mrs. Louis Sabille, w i d o w of a n A i r F o rce K o r e a n
campaign hero, a nd G e n e r a l H o y t S. V a n d e n b e r g , A i r F o rce C h ief of
Staff,
The N BC n e t w o r k p r o g r a m w i l l p r e s e n t the M a r i n e Corps Band,
with talks b y L i e u t e n a n t H e n r y A. Commiskey, M e d a l of H o n o r
winner, and G e n e r a l C l i f t o n B. Cates, Com m a n d a n t of the M a r i n e
Corps.
The A BC n e t w o r k p r o g r a m w i l l p r e s e n t the N a v y Band, w i t h
talks by L i e u t e n a n t Thomas J. Hudner, M e d a l of H o n o r winner, and
Admiral W i l l i a m Fechteler, C h i e f of N a v a l Operations.

264
-

2

-

President T r u m a n a nd S e c r e t a r y S n y d e r w i l l be h e a r d over
n e t w o r k s b e t w e e n 10:50 p.m. an d 11:00 p.m., E a s t e r n
Time.

all five
Daylight

Savings B o n d v o l u n t e e r o r g a n i z a t i o n s t h r o u g h o u t the c o u n t r y
are ready to conduct a v i g o r o u s c a m p a i g n over the nex t two months.
Their efforts w i l l be d i r e c t e d p a r t i c u l a r l y toward c o m m u n i t y
activity, i n c l u d i n g campaigns to h a v e scores of cities a nd towns
qualify for the "Defense B o n d F l a g City" award.
F o r t y - t w o cities
and towns a l r e a d y h a v e w o n this d i s t inction.
The Pa y r o l l Savings P l a n w i l l be p u s h e d d u r i n g the D r i v e in
doth large a n d small c o n cerns in all i n d u stries a n d b u s i n esses.
W o m e n ’s d i v i s i o n s of the v o l u n t e e r organizations, f u n c t i o n i n g
under the d i r e c t i o n of State and c o u n t y w o m e n chairmen, are
ready to canvass thousands of officers of p r o f e s s i o n a l p e o p l e for
bond sales.
W o m e n ’s clubs are c o n c e n t r a t i n g on p r o m o t i o n of the
Bond-A-Member Plan.
Special com m i t t e e s of b o n d s a l e s m e n h a v e b e e n set up in r u r a l
counties of e v e r y State to r e a c h f a r m homes.
T h e y i n t e n d to
point out
to farmers the a d v a n t a g e of b u y i n g D e f e n s e B o nds to
set up reserves a g a i n s t the d e p r e c i a t i o n of f arm m a c h i n e r y .
In k e e p i n g w i t h the theme of the D r i v e -- that d e f e n s e is
everybody's job, a nd that b u y i n g D e f e n s e B o n d s is a n e x c e l l e n t
means of p e r s o n a l p a r t i c i p a t i o n in de f e n s e -- local m i l i t a r y
installations t h r o u g h o u t the c o u n t r y are c o o p e r a t i n g c l o s e l y w i t h
the Bond v o l u n t e e r o r g a n i z a t i o n s .
Organized labor's support of the D e f e n s e B o n d D r i v e is b e i n g
symbolized in the L a b o r D a y ceremonies at G r and Rapids.
The
ceremonies are b e i n g spo n s o r e d jointly b y the D e f e n s e Department,
the Treasury D e p a rtment, the A m e r i c a n F e d e r a t i o n of Labor, the
Railway L a b o r Executives' A s s o c i a t i o n , a nd the Congress of
Industrial O r g a n i z a t i o n s .

oOo

TR EA SU R Y D EP A R TM EN T
Information Service

WASHINGTON, D

2G5
RELEASE, MORNING NEWSPAPERS
Tuesday, September U, 1951.

S-2797

Secretary of the Treasury Snyder today announced the offering, through
the Federal Reserve Banks, of 1-7/8 percent Treasury Certificates of In­
debtedness of Series C-1952, open on an exchange basis, par for par, in
authorized denominations, to holders of 3 percent Treasury Bonds" of
(dated September 15, 1931) in the amount of $755,U29,000, called for re­
demption on September 15, 1951* Cash subscriptions vd.ll not be received.
The certificates now offered will be dated September 15, 1951, and
will bear interest from that date at the rate of one c?„nd seven—eighths per­
cent per annum, payable with the principal at maturity on August 15, 1952.
They vd 11 be issued in bearer form only, in denominations of $1,000, $5,000,
|10,000, $100,000 and $1 ,000,000.
Pursuant to the provisions of the Public Debt Act of 19)4.1 , as amended,
interest upon the certificates now offered shall not have any exemption,
as such, under the Internal Revenue Code, or laws amendatory or supplementary
thereto. The full provisions relating to taxability are set forth in the
official circular released today.
Subscriptions will be received at the Federal Reserve Banks and Branches,
and at the Treasury Department, Washington, and should be accompanied by a
like face amount of the called bonds. Subject to the usual reservations,
all subscriptions will be allotted in full.
The subscription books will close for the receipt of all subscriptions
at the close of business Friday, September 7.
Subscriptions addressed to a Federal Reserve Bank or Branch or to the
Treasury Department, and placed in the mail before midnight September 7,
will be considered as having been entered before the close of the subscrip­
tion books.
The text of the official circular follows:

UNITED STATES OF AMERICA

2G8

1-7/8 PERCENT TREASURY CERTIFICATES OF INDEBTEDNESS OF SERIES C-1952
Dated and bearing interest from September 15, 1951

1951
Department Circular N o. 892

Due August 15, 1952

TREASURY DEPARTMENT,
Office of the Secretary,
Washington, September ii, 1951.

Fiscal Service

Bureau of the Public Debt
I. OFFERING OF CERTIFICATES
1.

The Secretary of the Treasury, pursuant to the authority of the

Second Liberty Bond Act, as amended, invites subscriptions, at par, from
the people of the United States for certificates of indebtedness of the
United States, designated 1-7/8 percent Treasury Certificates of Indebted­

ness of Series C-1952, in exchange for 3 percent Treasury Bonds of 1951-55,
dated September 15, 1931, due September 15, 1955, called for redemption
September 15, 1951.
II.

DESCRIPTION OF CERTIFICATES

1. The certificates will be dated September 15, 1951, and will bear
interest from that date at the rate of 1-7/8 percent per annum, payable
nith the principal at maturity on August 15, -1952. They will not be subject
to call for redemption prior to maturity.
2. The income derived from the certificates shall be subject to all
taxes, now or hereafter imposed under the Internal Revenue Code, or laws
amendatory or supplementary thereto. The certificates shall be subject to
estate, inheritance, gift or other excise taxes, whether Federal or State,
but shall be exempt from all taxation now or hereafter imposed on the prin­
cipal or interest thereof by any State, or any of the possessions of the
United States, or by any local taxing authority.
3.
moneys.

The certificates will be acceptable to secure deposits of public
They will not be acceptable in payment of taxes.

iu Bearer certificates will be issued in denominations of $1,000,
$5,000, $10,000, $100,000 and $1,000,000. The certificates will not be
issued in registered form.
5. The certificates will be subject to the general regulations of the
Treasury Department, now or hereafter prescribed, governing United States
certificates.
III.

SUBSCRIPTION AND ALLOTMENT

1. Subscriptions will be received at the Federal Reserve Banks and
Branches and at the Treasury Department, Washington. Banking institutions
generally may submit subscriptions for account of customers, but only the
Reserve Banks and the Treasury Department are authorized to act as
official agencies.
2.

The Secretary of the Treasury reserves the right to reject any

-

2

267

-

subscription, in whole or in part, to allot less than the amount of certif­
icates applied for, and to close the books as to any or all subscriptions
at any time without notice; and any action he may take in these respects
shall be final. Subject to these reservations, all subscriptions will be
allotted in full. Allotment notices will be sent out promptly upon
allotment,
IV.

PAYMENT

1. Payment at par for certificates allotted hereunder must be made
on or before September 15, 1951, or on later allotment, and may be made only
in Treasury Bonds of 1951-55, called for redemption September 15, 1951,
which will be accepted at par, and should accompany the subscription.

Final in te r e st due September 15 on the calle d bonds surrendered w ill be
paid, in the case of coupon bonds, by payment of the September 15, 1951
coupons, which should be detached by holders before presentation of the
bonds, and, in the case of reg istered bonds, by checks drawn in accordance
with the assignments on the bonds surrendered.
V.

ASSIGNMENT OF REGISTERED BONDS

1. Treasury Bonds of 1951-55 in registered form tendered in payment
for certificates offered'hereunder should be assigned by the registered
payees or assignees thereof to nThe Secretary of the Treasury for exchange
for Treasury Certificates of Indebtedness of Series C-1952 to be delivered
t o _____ _______ in'accordance with the general regulations of the
Treasury Department governing assignments for transfer or exchange, and
thereafter should be presented and surrendered with the subscription to a
Federal Reserve Bank or Branch or to the Treasury Department, Division of
Loans and Currency, Washington, D. C. The bonds must be delivered at the
expense and risk of the holders.
VI.

GENERAL PROVISIONS

1. As fiscal agents of the United States, Federal Reserve Banks are
authorized and requested to receive subscriptions, to make allotments on
the basis and up to the amounts indicated by the Secretary of the Treasury
to the Federal Reserve Banks of the respective Districts, to issue allot­
ment notices, to receive payment for certificates allotted, to make delivery
of certificates on full-paid subscriptions allotted, and they may issue
interim receipts pending delivery of the definitive certificates.
2. The Secretary of the Treasury may at any time, or from time to
time, prescribe supplemental or amendatory rules and regulations governing
the offering, which will be communicated promptly to the Federal Reserve
Banks.

JOHN W. SNYDER,
Secretary of the Treasury.

4

Comparison of principal items of assets and liabilities of national banks - continued
(in thousands of dollars)
June

30 ,

1951

Apr. 9,

June 30,

1951

I95O

{Increase or decrease {Increase or decrease
{since Apr, 9. 1951
{since June 30. 1950
Amount
¡Percent
¡Percent
Amount

LIABILITIES
Deposits of individuals, partnerships, and corporations:
Demand.......................... $48,785,259 $48,671,446 $46,787,942
Time................... ........ 19 .212.936
18,998,878
19 ,218,390
Deposits of U, S. Government........
3 .909.306
4 ,213,269
2 .396,693
Postal savings deposits.............
7,209
5,4l6
6,502
Deposits of States and political
subdivisions....................... 6,040,298
5,683,478
5,609,334
Deposits of banks....... .
7.363,254
7.626,529
7,759.253
Other deposits (certified and cash­
iers 1 checks, e t c ...........
I.255.277
1.143.094
1.204.618
Total deposits.................. 86,836,8X4
86,401,776
82,659.791
Bills payable, rediscounts, and other
liabilities for borrowed money.,...
160,202
32,890
24,783
Other liabilities...................
1 .276.344
1.269.031
1 .056.971
Total liabilities, excluding
capital accounts.............
87.838,322
83,741.545
CAPITAL ACCOUNTS
Capital stock:
Preferred.......................
12,447
16,567
13.753
0ommon
2.054.708
2.017.699
. 1 .963,374
Total.............. ....... 2.067.155 ..2,031.452 .....1.979.941
Surplus.......................... .
2,994,486
2,948,622
2.770,030
Undivided profits.................... 1,193,499
1,133.190
1.183,453
Reserves......... ...... ............
264.886
269.581
311.306
Total surplus, profits, and
reserves
4.452.871
4,401,656
215.126
Total capital accounts•......... 6.520.025"
¿>33.108
¿.195.067
Total liabilities and capital
accounts..................... 94.658.76l
».271.430
89.936,612
RATIOS:
Percent
Percent
Percent
U.S.Gov*t securities to total assets
34.92
35.20
4i.s6
Loans and discounts to total assets
32 .31
32.18
27.43
Capital accounts to total deposits
7*51
7.49

>.

7.45

$113,813
2l4,058
-303.963

.23

1.13

$1 ,997,317
-5,454
1 ,512,613

4.27

1.793

63.ll
33*11

7.68
-1.71

356,820
263,275

6.28
3 .5S

112.183
“ * 35,03s

9*81
.50

50.659
4 ,177,023

5.05

-127,312
-7,313

-7947
-.57

8,107
212.060

32.71
20.06

300.413

.34

4.397.190

5.25

-1,306
37.009
35.703
*5,864
io,o46
•4.695

-9.50
... 1.83
1.76

-4,120
91.334
87.214

-7*21

707

10.87

430,964
-132,724

51.215
8b.918
387.331

NOTE:

4.21

1,56
.85

223,856
60,309

-1.74

-46.420

-24.87
4.65
4Ì4o
8.08
5.32
-14.91

4.722.149

5.25

1.16
1.35

Minus sign denotes decrease.

3
Statement showing comparison of principal items of assets and liabilities of active national banks
as of June 30, 1951. April 9, 1951.
June 30, 1950
(in thousands of dollars)
"

i

Q

Tm

:

'
■

T„__

{Increase or decrease {Increase or decrease

■

«
<
8ln°° *>*• 9- 1951
____________________________________:____________ {____________ i______
; Amount
{Percent :
Number of banks.... ...............
4,953
4,959
4,977
-.12

J

ASSETS
Commercial and industrial loans..•• $14 ,331 ,8-30 $1**,393,117 $10,271,043
Loans on real estate...............
7,279,042
7 .123,701
6,374.733
Consumer loans to individuals
...
1
/
4
,372,134 1/3 ,961,946
4 ,397,651
Other loans to individuals { Singlepayment loans of $3,000 and over.
1,100,509
1,332,917
1 ,371,375
All other loans, including overdrafts...........................
. 3 ,612,021 ..3 .522,579 .3,301.028
Total gross loans..............
30 ,991.919 30,744,448 25,009,259
Less valuation reserves
407.683
**03.318 _ 3 1 7 . 3 7 9
Net loans................
30,584.236
24.671.880
30.3*030
U. S. Government securities;
Direct obligations............ .
33,182,052
33,051,114
37,649,227
Obligations fully guaranteed..•»
2.660
2 .36°
Total U. S. securities......
33.184.4l2
37.651!246
33.053.77**
Obligations of States and political
subdivisions............. .......
4 .968,271
4 ,294,138
4 .930.776
Other bonds, notes, and debentures.
2 ,434,656
2,436,304
2,127,187
Corporate stocks, including stocks
of Federal Reserve banks........
172.098
v 177.664
. 178.597
Total securities.............
**0.435|298
40.729I156
44.244.669
Total loans and securities....
71.070.286
71,219.53**
68i5i6! 5**9
Currency and coin.................
985,07**
1 ,179,527
959,569
Reserve with Federal Reserve banks.
12,370,480
12 ,618,576 10,451,764
Balances with other banks.........
8.218.238
_ 8,550.839
8.897.587
Total cash, balances with other
banks, including reserve balances and cash items in process
of collection................
22.253.141
22.0l6.34l
19.962.172
Other assets......................
1,186,086
1,184,803
1,057,891
Total assets.................
94 .65s .761 94,271,430 89,936,612
•k/ Adjusted to exclude single-payment loans of $3,000 and over .

Jo

-4 3

J—
Amount

30. 1950
:Percent
124
-.48

$4 ,060,787

39.54
14.19

-$6i ,2S7
155,341
25,517

2.18
.58

904,309
435,705

38,458

2,89

270,866

.... 89,442 .
247,471
,4,365
243.106

2.54
.80
1.08
.80

310.993
5,982,660
70.304
5,912.356

-•39

-4,598,113
64l
-4 ,537.472

-12.21
31.75
-12.21

674,133
307,469

15.70
14.45

6.499

3.78
-8.16

-130,938
300
- 130.638

37,495

12.71
-.39
.76

-1,648

-,0 7

933
-93,858
149.248
-194.453
-248,096

.53
-.23
.21

679.349

236.800
1,283
387.331

-16.49
-1.97
8.27

-3.609.371
2.302.985
25,505
1,918,716
346.748

1,08
.11
.41

2.290.969
128,195
4 ,722,149

11.00

24.61
9.42

23.92
20.84

23.96

2.66
18.36
4.06

11.48
12.12
5.25

2
All other gross loans» including loans to farmers» to brokers and dealers and
others for the purpose of purchasing and carrying securities, and to hanks» etc*,
amounted to $4,983*000,000, an increase of 2g- percent since April.
of loans and discounts to total assets on June

30,

The percentage

1951 was 32*31 in comparison with!

32*18 on April 9 and 27*43 in June 1950*
Investments of the hanks in United States Government obligations (including
$2,660,000 guaranteed obligations) on June

30,

1951 aggregated $33,054,000,000,

which was a small decrease since April, but a decrease of nearly $5,000,000,000, or

12

percent, in the year*

These investments were

to nearly 42 percent a year ago*

35

percent of total assets, compard

Other bonds, stocks and securities of $7,582,000,0(1

which included obligations of States and political subdivisions of $4,968,000,000,
were $37,000,000, or one-half percent more than in April, and $988,000,000, or
percent, more than held in June last year*

15

The total of securities held amounting td

$41,000,000,000 was slightly less than the figure reported for April, but

8

percent

less than the amount held at the end of June 1950*
Cash of $985,000,000, reserve with Federal Reserve banks of $12,370,000,000 and ]
balances with other banks (including cash items in process of collection) of
$8 ,898,000,000, a total of $ 22,253*000,000, showed an increase of $237 *000,000, or

1

percent, in the quarter#
The unimpaired capital stock of the banks on June

including $12,000,000 of preferred stock*

30,

1951 was $2,067*000,000,

Surplus was $2,994,000,000, undivided

profits $1,194,000,000 and capital reserves $265*000,000, or a total of $4 ,453*000,00
Total capital accounts of $6,520*000,000, which were 7*5^ percent of total deposits,
were $87,000,000 more than in April when they were about the same percentage ratio
to total deposits#

TREASURY DEPARTMENT
Washington, D.C.
'APERS,

The total assets of national hanks on June
$35,000,000,000,

3 0 , 1951

amounted to nearly

it was announced today by Comptroller of the Currency Preston

Delano. The returns covered the 4,953 active national banks in the United States
by the 4,959 active banks on April 9» 1951» the date of the previous call, and were
nearly $5,000,000,000 more than reported by the 4,977 active national banks as of
June 3 0 » 1950«
The deposits of the banks on June 30 were nearly $87*000,000,000, an increase
of over $400,000,000 since April, and exceeded by $4,000,000,000 the amount re­
ported at the end of June last year. Included in the recent deposit figures were
demand deposits of individuals, partnerships and corporations of $48,7 8 5 »000,000,
which increased $114,000,000 since April, and time deposits of individuals, partner­
ships and corporations of $19*213>000,000, an increase of $214,000,000. Deposits
of the United States Government of $3*910*000,000 were down $304,000,000 since
April; deposits of States and political subdivisions of $6,040,000,000 showed an
increase of $431,000,000, or more than 7 percent; and deposits of banks amounting
to $7,627,000,000 were down $133*000»0°0 since April. Postal savings were $7,000,00
and certified and cashiers* checks were $1 ,255*000,000.
Net loans and discounts at the end of June 1951 were $30,5^4,000,000, an alltime high. They were $243,000,000 above the April figure and almost $6 ,0 0 0 ,000 ,000,
or 24 percent, above the June 30 figure last year. Commercial and industrial loans
as of the recent call date were $14,332,000,000, a decrease of $61,000,000

since

April. Loans on real estate of $7,279,000,000 were up 2 percent in the period.
Consumer loans to individuals were $4,39^,000,000,

exclusive of

s in g le -p a y m e n t

loans to individuals of $3*000 and over which were included with this class of
loans at previous call dates.

TR EA SU R Y D EP A R TM EN T
Information Service

WASHINGTON,

272
RELEASE m o r n i n g n e w s p a p e r s ,
Thursday, September 6 , 1951»

S -2 7 9 8

The total assets of national banks on June 30, 1951 amounted
to nearly $95,000,000,000, it was announced today by Comptroller
of the Currency Preston Delano.
The returns covered the 4,953
active national banks in the United States and possessions..
The
assets were nearly $400,000,000 more than the amount reported by
the 4,959 active banks on April 9* 1951, the date of the previous
call, and were nearly $ 5 ,0 0 0 ,0 0 0 ,0 0 0 more than reported by the
4 ,9 77 active national banks as of June 30, 1950.
The deposits of the banks on June 30 were nearly
$87,000,000,000, an increase of over $400,000,000 since April, and
exceeded by $4,000,000,000 the amount reported at the end of June
last year.
Included in the recent deposit figures were demand
deposits of individuals, partnerships and corporations of
$48,785,000,000, which increased $114,000,000 since April, and time
deposits of individuals, partnerships and corporations of
$19,213,000,000, and increase of $214,000,000.
Deposits of the
United States Government of $3,910,000,000 were down $304,000,000
since April; deposits of States and political subdivisions of
$6,040,000,000 showed an increase of $431,000,000, or more than
7 percent; and deposits of banks amounting to $ 7 ,6 2 7 ,0 0 0 ,0 0 0 were
down $133,000,000 since April.
Postal savings were $7,000,000
and certified and cashiers’ checks were $ 1 ,2 5 5 ,0 0 0 ,0 0 0 .
Net loans and discounts at the end of June 1951 were
$30,584,000,000, a n all-time high.
They were $243,000,000 above
the April figure and almost $6,000,000,000, or 24 percent, above
the June 30 figure last year.
Commercial and industrial loans
as of the recent call date were $14,332,000,000, a decrease of
$61,000,000 since April.
Loans on real estate of $7,279,000,000
were up 2 percent in the period.
Consumer loans to individuals
were ‘$4 ,3 9 8 ,0 0 0 ,0 0 0 , exclusive of single-payment loans to
individuals of $ 3 ,0 0 0 and over which were included with this class
of loans at previous call dates.
All other gross loans, including
loans to farmers, to brokers and dealers and others for the
purpose of purchasing and carrying securities, and to banks, etc.,
amounted to $4,983,000,000, an increase of 2| percent since April,
The percentage of loans and discounts- to total assets on June 30,
1951 was 32.31 in comparison with 32.18 on April 9 and 27.43 in
June 1950.

2

273

Investments of the banks in United States Government
obligations (including $ 2 ,6 6 0 ,0 0 0 guaranteed obligations) on
June-30, 1951 aggregated $33*054,000,000, which was a small
decrease since April, but a decrease of nearly $5*000,000,000, or
12 percent, in the year.
These investments were 35 percent of
total assets, compared to nearly 42 percent a year ago.
Other
bonds, stocks and securities of $7*582,000,000, which included
obligations of States and political subdivisions of
$4 ,968 ,0 0 0 ,0 0 0 , were $37*000,000, or one-half percent more than
in April, and $988,000,000, or 15 percent, more than held in June
last year.
The total of securities held amounting to
$41,000,000,000 was slightly less than the figure reported for
April, but 8 percent less than the amount held at the end of June
1950.
Cash of $985*000,000, reserve with Federal Reserve banks of
$12 ,3 7 0 ,0 0 0 ,0 0 0 and balances with other banks (including cash
items in process of collection) of $ 8 ,8 9 8 ,0 0 0 ,0 0 0 , a total of
$22 ,2 5 3 *0 0 0 ,0 0 0 , showed an increase of $ 2 3 7 *0 0 0 ,0 0 0 , or 1 percent,
in the quarter.
The unimpaired capital stock of the banks on June 3 0 , 1951
was $ 2 ,067 .*0 0 0 ,0 0 0 , including $ 1 2 ,0 0 0 ,0 0 0 of preferred stock.
Surplus was $2,994,000,000, undivided profits $1,194,000,000 and
capital reserves $2 6 5 *0 0 0 ,0 0 0 , or a total of $4,453*000,000.
Total capital accounts of $6,520,000,000, which were 7.51 percent
of total deposits, were $87,000,000 more than in April when they
were about the same percentage ratio to total deposits.

Sf aAeme rrfc showing comparison of principal- items of assets and liabilities of active national foarXcf

as of June 30, 1951, AprXX 9, X95>X, and June 30, 1950
(in ■thousands of dollars)
June 30,

Apr.

1951

1951
•

9,

June 30,

1950
$

a

U,959

U,977

:Increase or decrease¡Increase or decrease
; since Apr. 9, 195l : since June 30, 1950

: Amount"

Number" o f banks.............................
ASSETS
$18,331,830 818,393,117 $10,271,0)43
Com m ercial a r i^ r ^ a s t- r ia l lo an s---7,123,701
6,3714,733
7,279,082
Loans on re a l e s t a te • • « » • • • • * • • • • * «
«,397,631 1/8,372,138 1/3,961,916
Consumer loans "to in dividuals« ©«e.««
Other loans to individuals : Sin gle1,100,509
1,332,917
1,371,375
payment loans of $3¿000 and over»
A ll other lo an s, including over­
3,301*028
3,612,021
3,522.579
d ra fts» • ««•»« »3««« *# •» « *
3
0
,7
8
8
7
8
8
8
55,
009,259
“
3075917919
Total gross loan s«»•«««.*« » * • * • * •
803,318
337,379
807,683
Less valuation re se rv e s«». . » •
'
214,
671,
bbo_
*
3
0
4
1
7
1
3
0
Q 7 5 S E 7 Z W
Net loans«#»#.® •*•» » .•» **•■ •'
Uo
Government se c u ritie s
33,182,052
37,689,227
D irect ob ligation s« »•» ##»♦ ■ «•»*»«*> 33>05l^ll)4
2,360
2,019
2,660
O bligations fu lly guaranteed»#*«
37,651,28i> ■
T otal Uo S. se c u r itie s « » *» *» , ~137o33777ir " 1 O T 7 W
O bligations of S tates and p o litic a
8,298,138
8, 930,776
l i , 968,271
subdivisions #.#*.«* « «««##*#« «o» * • « ,
2,127,187
2,838,656
2, 836,308
Other bonds, notes, and debentures ,
Corporate sto ck s, including stocks
172,098
177,668
o f Federal Reserve banks«««««
,
173.597
©* © * ©1
)
“
8577277335—
887238755?
Total s e c u r it ie s * « • • • • • • « •
Total loans and se c u ritie s
, —■7 1 , 219, 5311' “ 71.0737235— 687916,589
Currency and coin «• • • • • • « » » « • • * • • » « , “—— ^357^7T T
10,851,768
12,618,5/6
12,370,1(80
Reserve with Federal Reserve banks ,
8,550,839 _
8,218,238
Balances with other banks«♦ ■ **»«•***,
8,897,587
Total cash, balances with othe
banks, including reserve b a l­
ances and cash items in process
22,016,3)4 19,962,172
o f c o lle c tio n « « * • • • • • • « • • • • • » *
22,253,1)41
■9'
.
T.sl(Jhib03; 1*057,691
l,ibb,0uO
Other a s s e t s «»#»*«# • • • « » * •#*•#■ *«»
9
H;’27T,HTd S97935;5l2
w : m i 7 B T
Total, a s s e ts #•«»«*#*«» o«•«#«* *

,~1

1 / Adjusted to exclude single-payment loans of $3,000 and over#

-6

1 Percent *. Amoun'c
:Percent
........
- 2I4 “~XT48
-.12

-#61,287
155,381
25,517

»«¿43
2 «18
«58

#8,060,787
908,309
835,705

39*5U
1)4.19
llo.00

38,1458

2.89

270,866

2l4*6l

89,882
2377571
8,365
2)43,106

2.58
78o
1*08
~T8o~

-12*21
31*75
-X75 W J W 2“ -12„21

- 130,938
300
-130,638

-.39
12*71
-c39

-8,598,113
681

37,895
»1,688

.76
-.0 7

678,133
307,869

933

,53
-»23
«21
-UbaU?
-1.97
8.27

=957555

lU9,2Ub
-2U8,096
679,3)49

236,800

"387,331

1.08
.11

9 m U 2
23 >92
20. Sip
2~l«~9o

310,993
57982,650
70,308
5,912,3p6

15*70
li4o)j.5

6 JiQQ

- 3 ,609, j 71
0 0 2 ,9 8 5

....

1 , 918,716
3116, 7)48

2,290.969
128,195
117722,1X9"

3,78
-8 *16
3 »31
2o6o
18,36
¿4*06

XXcii8
12TL2
“T,23
rv>

o o i i ç ja r

coâxxrmea
(in thousands o f dollars)

: June 30,
1951
;

Apr. 9,
1951

: June 30,
:
1950

LIABILITIES
Deposits of individuals, partner­
ships, and corporations:
Demand.................... ...|ii8,785,259 11(8,671,1(1(6 116,787,91(2
18,998,878
19,218,390
Time •............... ..... . ... 19,212,936
Deposits of U. S. Government..... ... 3,909,306
¡(,213,269
2,396,693
5,2*16
Postal savings desposits.........
6,502
7,209
Deposits of States and political
5,683,178
... 6,01*0,298
5,609,33b
... 7,626,529
7,363,251
7,759,253
Other deposits (certified and cash­
iers* checks, etc.).........
1,2014,63.8
... 1 ,2 5 5 ,2 77
1,11(3,091
Total deposits..... .....
86,1*01,776 — 82Ì559775T"
Bills payable, rediscounts, and other
,her
liabilities for borrowed money32,890
160,202
21,783
Other liabilities............. . ... 1,269,031
1,276,311
1,056,971
Total liabilities, excluding
capital accounts
87,838,322
88,138,735
83,711,515
CAPITAL ACCOUNTS
Capital stock:
Preferred.................
16,567
12,10(7
13,753
Common.......... ,....... . ... 2,051t,708
2,017,699
1,963.371
Total...................
7 2
1,979,911
...
2,0677135“
2,031,1(52
Surplus.......... ........ .
2o770/630~
2,'9587522. .T 2,992*,i;8ó
Undivided profits...... ......... ... 1,193,1(99
1,133,150
1,183,1(53
Reserves............ ............
311,306
269,581
Total surplus, profits, and
¿*,215,126
reserves................... ... 1,1(52,871
ii,2*01,656
. Total capital accounts....... ... 6,520,026
6,2*33,108
6,195,067
Total liabilities and capital
91,271,1(30
89,936,612
accounts.................. ... 91»,658,761
RATIOS:
Percent
Percent
Percent
1*1.86
Uo S© Gov*t securities to total assets 32*o92
3 5 .2 0
32.18
Loans and discounts bo total assets
32.31
27.2*3
Capital accounts to. total, deposits,
7*51
7.2*9
7-2*5

:Increase or decrease :Increase or decrease"
:since Apr. 9', 1951
:since June 30, 1?5>D
: Amount"
:Percent : Amount
:percent

1 1 1 3 ,8 1 3
21)4,058
-303,9 6 3
707

.23
1.13
-7.21
10.87

#1 ,9 9 7,3 1 7
-5,1*51*
1,512,613
1 ,7 9 3

1 27
-.03
63.11
33,11

130,961
-132,721

7.6 8
-1.71

356,820
263,275

6.28
3 «58

50,659
17177,023 '

In 21

9.81
.5o~

112,183
"T35JÔ38
-127,312
-7,313

-79.17
-.57

8,107
212,060

32.71
20.Go

300,113

.3U

1 ,39 7,19 0

5.25

-1,306
37,009
“357733
T5785T
10,01*6
-1,695

-9 .50
lo83
t

t

w

1.36”
.85
-1.71

—1*,120
-2/*.07
91,331
1**65
~B772nr~
£.1*0
223,8*5T~
8 ,C8
5 .3 2
60,309
-1*6,1*20
-11*.91

51,215
86,916

1.16

1 .3 5

237,715
321,959

387,331

.n

1,722,119

NOTE:

Minus sign denotes decrease.

5.61
5.25

0

rf rf

276
TREASURY DEPARTMENT
Washington

The following address by Secretary Snyder
at Grand Rapids, Michigan, opening the
Defense Bond Drive, is scheduled for
delivery and for broadcasting over"Five
radio networks aFljTgp p ,m, EST, Monday,
September 3» 191?1 and is for release at
that time.

I
wish that every American could see the "Power for Peace" military
pageant that we are witnessing here in Grand Rapids today as we launch our
nation-wide Defense Bond Drive, It is truly a heartening display of the
military might of our Armed Forces,
The planes and tanks, the guns and equipment that are being displayed
here before the joint Labor Day celebration and the opening of the new
Defense Bond Drive are symbols — • symbols that we, as free men and women,
are answering, through our defense program, the challenge of communism.
They are a demonstration of the ability and willingness of Americans to
work together voluntarily in the common cause of defense of justice and
right.
The purpose of this Defense Bond Drive is to emphasize to every
American the fact that defense is everybody*s job, We cannot all serve
in the armed forces. We cannot all work in factories to produce the
military armaments needed to defend our freedoms, But every one of us
can play an important role in this great defense effort by helping to
mobilize the power of individual thrift behind the productive might of
our Nation.
American thrift has always been one of the great sources of our
productive power. Savings have made ours a dynamic economy and given us
a better land in which to live. The habit of savings and investment has
made us a Nation of farm and home owners, of insurance policyholders, of
savings account and security owners. It has enabled us to realize the
full benefit from the great resources of this country. These accomplish­
ments are the direct result of free enterprise promoted by individual
and collective thrift,
Today the practice of thrift has taken on an even greater importance
to our economy, and to our national security. Today as we are nearing the
peak of the tooling-up period in our national defense effort, the thrift
dollar as never before is a defense dollar.

S-279 9

277

*■*

2 *■

The defense bond program i s a program in which a l l o f us can work
together to achieve personal f in a n c ia l independence and to preserve our
national freedom* And, in the modern world, freedom w i ll survive only i f
we cooperate with other freedom -loving*nations in build ing a common
defense ag ain st aggression*
That i s why we need to b u ild up our m ilita r y power and to keep i t
ready fo r any emergency* That i s why i t i s necessary to in v e st so much
money in the cause o f p eace. That i s why i t i s so important th a t
you — each of you — buy bonds now during t h is drive — and keep them
as an investment*
A slogan which has been suggested fo r t h i s new drive i s “Bonds fo r
Power fo r Peace“ * These fiv e words sum up the substance and the s p i r i t of
the appeal which* we are making, I t i s a slogan with much tru th in i t *
lour purchases o f Defense Bonds w i l l be build in g power fo r the Nation
not only m ilita r y power and economic power, but a lso purchasing power fo r
your fu tu re , and fo r the fu tu re s t a b i l i t y and p ro sp erity of our Nation
when the present emergency i s over. We must continue to b u ild our Nation
toward a goal o f economic and moral power. We must continue to b u ild , as
we have always b u i l t , fo r the fu tu re*
. One of th e r e a l in sp ira tio n s of the success of the Savings Bond
Program in the postwar years has been the continuing in t e r e s t o f
President Truman,
Ladies and gentlemen:
to you from San F ran cisco *

The P resid en t of the United S ta te s speaking

0O 0

8TS

10

Program

in the postwar years has

been the c o n t i n u i n g
President

interest of

Truman.

Ladies and gentlemen:
The P r e s i d e n t of the United
States,

s p e a k i n g to you from

San Francisco*

the Nation -- not only m ilitary
power and economic power,

but also

p u r c h a s i n g power for your future,
h

and the future stability and
A

1

p r o s p e r it y of our Nation when the
present e m e r g e n cy

is over.

We must

continue to build our Nation

toward^

a goal

power.

of economic and moral

We must continue to build,
have always built,

as we

for the future.

One of the real

inspirations

of the success of the Savings Bond

you »» each of you «- buy bonds now
during this drive -« and Keep them
as an

investment.
A slogan which has been

s u g g e s t e d for this new drive

is

‘•Bonds for P o w e r for P e a c e ” .
These five words sum up the
s u b s t a n c e and the spirit of the
appeal

which we are maning.

is a slogan with much truth
It.

It
In

Your p u r c h a s e s of D e f e n s e

Bonds will

be building power for

- 7 financial

i n dependence and to preserve

our national

freedom.

m o d e r n world,
only

And,

f r e e d o m will

in the
survive

if we c o o p e r a t e w ith other

f r e e d o m - l o v i n g n a t i o n s in b u i l d i n g
\
a common defense against aggression.
That

is why we need to build

up our m i l i t a r y power and to keep
it ready for any e m e r g e n c y .
is why

it is n e c e s s a r y to

so m u c h money
That

is why

That

invest

in the cause of peace.

it is so

important that

S8S
Today the p r a c t i c e of thrift
„•»
has ta.8'tn on an even grea t e r
Importance to our economy,
our national

security.

and to

Today as

we ire n e a r i n g the pean of the
tooling-up p e r i o d

in our national

d e f e n s e effort,

the thrift dollar

as never befo r e

is a d e f e n s e

do i far.
The defense bond program is
11

c

•: r;>

i program

in

«hich all of us

can

worK together to achieve personal

sSteSBfil

sai
pò I »c y h o I a e r s , of savings account
and security owners.

It mas

enabled us to r e a l i z e the full
benefit from the great r e s o u r c es
of this country.
accompIishuertts

These
gj g* <o

me direct

result of free e n t e r p r i s e
promo ted

indivi dui

c o l l ect ive Ihri ft

;

can thrift has a Iil
eat s o u rces
I#

If

s a dynamic economy

in which
avtries
H

‘Mat «on

n
u

%0

i nsu ran ce

C áñ

38$

1 •

of the

Defense Bond Drive are

symbols —

symbols that we, as

free men and women, are answering,
through our defense program,
challenge of communism.

the

They are

a demonstration of the ability and
willingness of Americans to worK
together voluntarily

In the common

cause of defense of justice and
right.'
purpose of this Defense

■PPP .•

The fo llo w in g a d d re ss by S e c r e ta r y Snyder
a t Grand R ap id s, M ichigan, opening the
D efense Bond D r i v e , ^ s sch edu led f o r
d e liv e r y and f o r b ro a d c a stin g over f i v e
r a d io networks a t 9 :5 0 p.m. EST, Monday,
Septem ber 3, 1951 and i s f o r r e le a s e a t
th a t time

I know that we will
with the traditional
the f u t u r e that
of Americans.

go forward

o p t i m i s m for

is character ist ic
As

1 said before,

have the courage and we have the
strength that

is needed.

By

w o r k i n g together u n s e l f i s h l y we
can build a better w o r l d -<* a
peaceful

and a p r o s p e r o u s world

where f r e e d o m and justice are the
shared heritage of all mankind.
I know that you will

be

in the

we

♦

®Ing

to tane any c
are

f i

It(

in a critical

a It between the forces of
liberty and justice,

on the one

forces of tyranny a
on
t ion has taKen

is evidence of

© eterna I

£5

ing

ermi nation with which Americans
always o o o o s e d o p p r e s s i o n
er form
As a
w

it s e If .

it m ight

ion -- and as

in

individuals

have d e d i c a t ed o u r s e l v e s

our ability to build up our
defenses.

The success of our

mobilization program
personal

is e v e r y o n e ’s

responsibi Iity.

isn't s o m e t h i ng we can

The future

leave to

the men fighting for us

in Korea

'or to the troops on guard
Europe.

Our national

in

defense

isn't

something that any one of us can
shirk;

it isn't s o mething that any

one of us should want to shirk -freedom

is too

important for us

P r e sident

In speak i n g over

icans to
D e f e n s e Bond s a v i n g s program.
up for

opens
yro 1 1 sav ings
bond-a

or

c luto
decision of

to save more and s

individuals
Iess will

make a t r e m e n d ou s d i f f e r e n c e

in

capital.
this

That they have taken

lesson to heart

is clearly

e v i d e n c ed by the growth
volume of their savings.

in the
The

nest egg of the average A m e r i c a n
family

in the form of

a s s e t s and

its equi t y

liquid
in life

insurance has grown to
a p p r o x i m a t e l y $6,0 0 0 today from
about $ 2,250 at the start of
World War

11

be the s t i m u l a t i o n of increased
individual

saving on a n a t i o n w i d e

basis.
I don't think we a r e going to
have to sell
people.

thrift to the American

They are already good

stude n t s of Benja m i n Franklin, who
taught that with
well

individuals,

as with businesses,

as

financial

s o u ndness and the promise of a
p r o s p e r ou s future depend to an
important degree on an early
a c c u m u l at i o n of a d e q u a t e working

the extent that the output of vital
d e f e n s e goods would be endangered.
We should s t r i v e at this t ime
to increase r e v e n u e s to the extent
that we can put our defense
e x p e n d i t u r e s on a 'p a y - a s - w e - g o
basis.

We need also to c ontinue

a l l o c a t i o n s and p r i o r i t i e s and to
m a i n t a i n a p p r o p r i a t e c o n t r o l s over
prices,

wages,

rents, and credit.

A n o t h e r fundamentaI Iy important
part of our general

p r o g r a m should

of d e m a n d s on our resources.
ial expansion,
iI I o r o v I de us wi
productive

This

however,
increas

power we v i t a l l y need

for d e f e n s e and for c i v i l i a n
*
purposes.
in the past few months
inflationary o r e s s u r e s for t u n a te l y
e n c o u n t e r e d some resistance.

This

d e v e l o p m e n t proba b l y was to some
extent a reaction to the flurry
of o v e r - b u y i n g that followed the
Korean

invasion,

fie s h ould not

(defense effort successful

will
•|flf|p| '.jj s

also require a substantial

share
*

of our national

product.

For

in order to meet the defense
goals,

in many

instances we wiI I

have to expand capacity,

and

in

order to get the m a t e r i a l s with
which to expand capacity, we
w i I I have to cut back

in other

places.
The program on which we have
embar k e d

is vast -- m e a s u r e d

terms of dollar costs or

in

in terms

28

S0£

A c c o r d i n g to present plans,
by the m i d d l e of

1952,

we will

have

diverted approximately one-fifth
of our total
purposes.

prod u c t io n to defense

In dollar terms that

m e a n s we will

be spending for

defense at an annual
$65 billion,

which

rate of about

is near l y twice

the present rate of defe n s e
expenditures.

In addition to

direct defense expenditures,
the

industrial

p r o g r a m that

expansion

is need e d to make our

I am glad to say that we have
already m ade substantial

strides

toward that a c c o m p I i s h m e n t , while
at the same time m a i n t a i n i n g
civilian production at a high
The defense effort,
is still

its full

impact on our e c o n o m y <far

Flans are

in advance of

performance,
will

however,

in its e x pansion stage

and has not yet had

still

level

and the m o n t h s ahead

be critical.

individuals to spend their current
incomes on goods and services.

To

this feeling of a s s u r a n c e that the
owners of the savings have enjoyed,
I attribute

largely our success

in

a v o i d i n g the kind of postwar
siump that has followed after every
other m a j o r war

in which our

Nation

involved.

has been

This truly r e m a r k a b l e story
of the a c h i e v e m e n t s of our free
e n t e r p r i s e economy should give us
c o n f i d e n c e that we can meet the
goals of our defense program.

:nc
CUb
If anything,

their holdi n g s of

liquid assets have
individual
form of

increased,

and

holdings of one particular

liquid asset -- U n ited States

savings bonds —
substantially.

have

increased

The total

o u t s t a n d i n g amount of £ bonds
alone now

is nearly $4 billion

greater than at the end of
'
|
World War

II financing.

A principal

role of this backlog

of savings has been to give courage to

80 S

-

24 -

were scarce and hard to get.
are encouraged,
reasons,

Savings

along with other

w ith that purpose

in mind --

to build up a b a c k l o g of purchasing
power which will

be a v ailable for

spending when p r e sently scarce
consu m e r goods return to the
market

in quantity.

I should
also,

that,

like to point out,

on balance,

have not reduced

individuals

their holdings of

liquid a s s e t s from the

level

reached at the end of the war.

!uxurîes are now
11 es.

of consumer
vings that Individuals
a C CUifl

the cour
War il when civilian goods

80S
pur c h a s es
a r e anot h e r

d u r a b l e c onsumer

indication of the economic progress
we have

in

Since the end of the war we have
built 5 mi I I ion n e w homes.
individual

A m e r i c a n s have purchased

12 million tele v i s io n sets,

a

product that wasn ' t even a v a i l a b l e
before the war.

The n u m b e r of

I in use

in homes has

m o r e than doubled since
r e f l e c t i n g higher

1939*

incomes.

Another factor which has
c o n t r i b u t e d to better

living

the great

in the

improvement

is

quality of the goods and s e r v i c e s
that are a v a i l a b le today.
products,

New

too -- products that

were not a v a i l a b le at any price
a few years ago -** have also
c o n t r i b u t e © to the rise
Amer i c a n

standard of

in the

living.

This,

however,

the fuI I story.
our nationaI

The

does not tell
increase

in

income which has

a c c o m p a n i e d the postwar expa n s i on
has been widely distributed.
m e a n s that the potential

This

market

for the products of American
industry and a g r i c u l t u r e has been
g r e a t l y widened and that our
ability to m a i n t a i n continued
p r o s p e r i t y has been

increased.

by an economic expansion
unparalieled
industry,

In history.

alone,

d u ring the

postwar period has
$110 billion
equipment.

invested over

in new plant and
As a result of this

t r e m e n d o u s expansion,
of our

Privat*

industrial

o n e - t h i r d higher

the output

p Iant

is now

in the first

of the postwar period
more than

its prewar

level

sie

18

our hope for the future.

Those

r e c o r d s are a c h r o n i c l e of the
p o s s i b i l i t i e s of a c h i e v e m e n t

in a

free e n t e r p r i s e system a n d , " m o re
than that,

are a d e m o n s t r a t i o n of

the force and v i t a l i t y of a
d e m o c r a ti c way of

life.

Our wartime achievements are a

matter of common Knowledge.

It is

not so widely realized however that
the postwar per iod has been marKed

gjjg £I£

- 17 The economic s t r e n g t h of one

part of the world,

however,

depends

to a c o n s i d e r a b l e extent on the
econ o m i c s t r e n g t h of other parts.
That

is why the d e f e n s e o b j e c t i v e s

of the free n a t i o n s are

inseparable.

The pro d u c t io n r e c o r d s we set
duri n g World War

1i and

in the

p o s t w a r period c o n v i n c e me that
if we conti n u e to work together
with the other free nations,
will

we

have the ability to back up

comes,

desp i t e our efforts
redness

our

in

se of our national

interest

and the cause of f r e e d o m
stand us

t

will

then

in good stead.

The key to our national
strength,

and to our ability to

f

fulfil

our world r e s p o n s ib i I i t i e s ,

is our capacity to produce.
p r o d u c t i v e power

That

is the fruit

of the hard work and thrift of
-

v

s u c c e e d in g g e n e r a t i o n s of Americans

If we fail

ourselves

of the free world,

and the rest

all of us will

suffer beneath c o m m u n i s t brutality.
By a c c e p t i n g the challenge,
we have given further evidence
.American c o u r a g e
ever been.
the only

today

is as

it has

We Know that power

lang

that

is

the c o m m u n ist

leaders understand.
e have done the most
to

lessen the c h a n c e of

a I I-out w a r .

if all -out war

•

ate

14 -

-

But

it w o u l d have
cHr*

if we

f

me>re trag ic

1

t

the most

.K., •

p o w e r f u 1 0 f the f ree na

- hsd

to taKe UD the communist
e to our free and democratic
of

Hi

life.

Free men

in

nations,

and

the freedom-Iov ing p e o p l e s now
IoCKed beh ind the Iron Curta in,
Iook

to the United States for the
ID

II seme

them c a p a b l e of s e I f - p r o t e c t i o n

ue

' '

-

-

13

o p t i m i s m are c h a r a c t e r i s t i c of our
American people.
It is a sad fact that our
\

efforts have had to be turned from
peaceful
arms.

ways to the p r o d u c t i o n of

It is tragic that we should

be forced to use our r e s o u r c e s and
our

intelligence and

industry

in

maK ing

instruments of d e s t r u c t i o n

rather

than

instruments for the

steady upward rise
standard.

in our

living

-

12

-

the world d e p e n d s on our a b i l i t y
and w i l l i n g n e s s to o p p o s e force
with force

in the defense of

demo c r a cy w h e n e v e r
may be necessary.
It tooK c o u r a g e bacK in 1913

to plan for the future, as your
founders did when they organized
Alpha Epsilon Pi,

It will

taKe

c o u r a g e and o p t i m i s m now to plan

and to worK for success when the
future

Io o k s d a r « .

But c o u r a g e and

{

years after the d i s s o l u t i o n of the
V* ‘vVjSv.

C o m i n t e r n -- the e s t a b l i s h m e n t of

the Cominform,

apparently

for the

sole purpose of s t i r r i n g up trouble
and

in t e r n a t ionaI

our doubts.

hatred,

confir

Final Iy ,J

into eret^'-ef^da^ Æ ’rTe'' brutal

communist

assault on the Republic of Korea.
We

learned the hard way.

The

free world will never be safe as
long as the threat of comm u n i st
a g g r e s s io n exists.

The peace of

'ounaation for that cooperation.
We In the free part of the
world,

however,

have been subjected

to a c o n t i n u o u s cold war barrage
ever since the f i g h t i n g
War

II ceased.

in ternat ionaI

in World

Our hopes for
c o o p e r a t i o n were

Germany and tried to sabotage the
European Recovery Program.

The

imposition of c o m m u n i st regimes
in Eastern Europe and -- only four

o u t p r o d u c i n g the enemy.
it through c o o p e r a t i o n
i

We won
in p lanning

:b;;

and performance.

We won

it because

we had the c o u r a g e and the
determi nat ion to defend our freedoms.
*

fie had a right to hope that the

wartime c o o p e r a t i o n among the great
p o w e r s would c o n t i n u e and

increase

in *
p e a'c e t i m e after we had secured
1

victory.

The United Nat 16ns

organization,
signers,

was

with 51 original
intended as the

not fully realized we did make
progr e s s toward r e s t o r a t i o n of
a high

level

of e m p l o y m e n t

sn in 19 3 3 World War

ii

broke out when Hitler m a r c n e d his
troops

into Po

World War

II was the most

destruct ive

A

in which

ever engaged
t r e m e n d o u s cost,

I

by o u t f i g h ti n g and

7

sharp, though fortunately fairly
short, recession -- a recession
such as had followed every major
war up to that time.
Coming out of that depression,
we entered into a period of
seeming prosperity that came to an
abrupt end with the collapse of the
stock market in October 1929.
In the decade of the '30’s,
we found that while prosperity was

about the future,
W o r {ci War 1 broke
year and

less than three years

later we were

involveo

save democracy.
that war,

in the next

in a war to

Sf§ helped win

but when the f ighting

ceased we elected to w i t h d r a w to a
state of

isolation.

D u r i n g the next three years,
we enjoyed great prosperity.
1921,

however,

In

we were struck by a

efforts of

individual

c itVrems

w o r k i n g toge t h e r not only for
their personal

a d v a n c e m e n t or for

group a d v a n c e m e n t , but for the
a d v a n c e m e n t of all.

Back in November,

1913,

your f r a t e r n i t y was founded,
European world was
Political

the

in turmoil.

and social

pres s i n g problems,

when

s t rife were

and the clouds

of war were on the horizon.
this country we were

In

looking back

In regard to our united effort

in

the cause of w o r l d - w i d e peace,
liberty and justice.
Frat e r n it y m e a n s brotherhood.
Your fraternity,

and others

I IKe

it, are fine examples of good
c i t i z e n s h i p and v a l u a b l e r e m i n d e r s
pip lis l

that the w e l l - b e i n g of our Nation
is based,

fundamentaI Iy, on

v o l u n t a r y cooperation.
has,

in fact,

Our Nation

been m a d e the

s t r o n g h o l d of d e m ocracy

through th

sincere men united by mutual
ties of friendship and by common
high ideals*

Indeed, the

principles of fraternity, which
n

you are carrying out through
Alpha Epsilon Pi, are excellent
guides for actions -- both
in regard to our personal
relationships with one another and

immediate, ass
need to join in common cause to
work for the day when all men will
possess the priceless privileges of
freedom that we in America enjoy
now,
I was pleased to receive the
invitation from your Supreme Master,
Mr. Teich, to be here with you at
your annual convention.

It is a

experience to meet with
group such as yours, composed of

H

1 deeply appreciate the
signal honor that Alpha Epsilon PI
Fraternity has bestowed on me
today.

I accept this citation in

a spirit of sincere humility and
with a pledge that I shall continue
to make every effort to justify
the confidence you have placed in
me.
I feel very strongly that
in these perilous times, our
responsibi Iities go far beyond our

TREASURY DEPARTMENT
Washington

The following address by Secretaiy Snyder before
the Supreme Council and Annual Convention of the
Alpha Epsilon Pi Fraternity at the Hotel Hollenden,
Cleveland, Ohio (accepting a citation for services
to the U. S.) is scheduled for delivery at 1:00 p.m.,
EDT, Monday, September 3> 1951 and is for release
at that time.

331

TREASURY DEPARTMENT
Washington

The f o l l o w i n g a d d ress by S e c r e t a r y S n y d e r
befo r e the S u preme C o u n c i l and A n n u a l
C o n v e n t i o n of the A l p h a E p s i l o n Pi
F r a t e r n i t y at the H o t e l H eilenden,
Cleveland, Ohio ( a c c e p t i n g a c i t a t i o n for
services to the U. S.) is s c h e d u l e d for
d e l i v e r y at 1:00 pan. , EDT",' Iffonday,
S e p t e m b e r 3, T 9 3 l " a n d is for r e l ease "at
that time.

I
d e e p l y a p p r e c i a t e the signal h o n o r that A l p h a E p s i l o n Pi
Fraternity has b e s t o w e d on me today.
I acce p t this c i t a t i o n in
a spirit of sincere h u m i l i t y an d w i t h a pledge that I shall
continue to m a k e e v e r y effo r t to j u stify the conf i d e n c e y o u h ave
placed in me .
I
feel v e r y s t r o n g l y that in these p e r i l o u s times, our
responsibilities go far b e y o n d our immediate, a s s i g n e d jobs.
We
need to join in c o mmon cause to w o r k for the d ay w h e n all m e n w i l l
possess the p r i c e l e s s p r i v i l e g e s of f r e e d o m that we in A m e r i c a
enjoy now.
I
was p l e a s e d to re c e i v e the i n v i t a t i o n f rom y our Supreme
Master, Mr, Teich, to be h e r e w i t h y o u at y o u r a n n u a l convention.
It is a w o n d e r f u l e x p e r i e n c e to m e e t w i t h a group such as yours,
composed of sincere m e n u n i t e d by m u t u a l ties of f r i e n d s h i p and
by. common h i g h ideals.
Indeed, the p r i n c i p l e s of fraternity, w h i c h
you are c a r r y i n g out t h r o u g h A l p h a E p s i l o n Pi, are e x c e l l e n t
guides for a c t ions
b o t h in r e g a r d to our p e r s o n a l r e l a t i o n s h i p s
with one a n o t h e r and in r e g a r d to our unit e d effort in the cause
of world-wide peace, l i b e r t y and justice.

S-2800

i

r 2 F r a t e r n i t y m e a n s b r o t h erhood.
Y o u r fraternity, a nd others
like it, are fine ex a m p l e s of good c i t i z e n s h i p a n d v a l uable
r e m i n d e r s that the w e l l - b e i n g of our N a t i o n is based, f u n d a ­
m e n tally, on v o l u n t a r y cooperation.
Our N a t i o n has, in fact,
b e e n m a d e the s t r o n g h o l d of d e m o c r a c y through the efforts of
i n d i v i d u a l citizens w o r k i n g t o g ether not only for t h eir personal
a d v a n c e m e n t or for group a d v a n cement, but for the adva n c e m e n t of
all.
B a c k in November, 1913, v h e n y o u r f r a t e r n i t y was founded,
the E u r o p e a n w o r l d was in turmoil.
P o l i t i c a l and social strife
were p r e s s i n g problems, and the clouds of w a r w ere on the horizon.
In this c o u n t r y we wer e l o o k i n g - b a c k at a " g o l d e n era", but were
w o r r y i n g a b out the f u t u r e .
W o r l d W a r I broke in the next yea r and less t han three years
later we were i n v o l v e d in a w a r to save democracy.
W e h e lped win
that war, but w h e n the f i g h t i n g ceased we e l e c t e d to w i t h d r a w to
a state of isolation.
D u r i n g the next three years,

we e n j o y e d great prosperity.

In

1 9 2 1 , however, we were s t r u c k by a sharp, though f o r t u n a t e l y
f a i r l y short, r e c e s s i o n -- a r e c e s s i o n such as h a d fo l l o w e d every
m a j o r w a r up to that time.
C o m i n g out of that depression, we e n t e r e d into a period of
s e e m i n g p r o s p e r i t y that came to a n a b r u p t end w i t h the collapse
of the s t ock m a r k e t in O c t o b e r 1 9 2 9 .
I n the decade of the ’30's, we f o und that w h ile prosperity
wa s not f u l l y r e a l i z e d we d id m a k e p r o g r e s s toward r e s t oration of
a h i g h l e v e l " o f employment.
T h e n in 1939 W o r l d W a r II broke
troops into Poland.

out w h e n H i t l e r m a r c h e d his

W o r l d W a r II was the m o s t d e s t r u c t i v e w a r i n w h i c h the
U n i t e d States h a d eve r engaged.
We an d our allies w o n it, at
a t r e m e n d o u s cost, by o u t f i g h t i n g a n d o u t p r o d u c i n g the enemy,
we
w o n it th r o u g h c o o p e r a t i o n in p l a n n i n g and p e r f o rmance.
We won
it b e c a u s e we h a d the courage a nd the d e t e r m i n a t i o n to defend our
freedoms.

S-2800

332
Z Do

-

We had a right to hope that the wartime cooperation among
the great powers would continue a n d ;in6reaee .in peacetime after
we had secured victory.
The United Khtiops^organization/“with
51 original signers, was intended as the^foundation for that
cooperation.
■'
We in the free part of the world; however, have been
subjected to a continuous cold war barrage ever since the fighting
in World War II ceased.
Our hopes for international cooperation
were disappointed when the USSR adopted obstructive tactics in
Germany and tried to sabotage the European .Recovery Program. The
imposition of communist regimes in Eastern Europe and -- only four
years after the dissolution of the Comintern -- the establishment
of the Cominform, apparently for the sole purpose of stirring up
trouble and international hatred, confirmed our doubts.
Finally,
it became necessary to physically meet and stop the brutal
communist assault on the. Republic of Korea.
We learned the hard way.
The free world will never be safe
as long as the threat of communist aggression e x i s t s . Tbte peace
of'the world depends on our ability and willingness to oppose
force: with force in the defense of democracy whenever it may be
necessary.
It t o o k courage b a c k in 1913 to p l a n for the future, as y o u r
founders did w h e n they o r g a n i z e d A l p h a E p s i l o n Pi.
It w i l l take ■
courage and o p t i m i s m n o w t o ' p l a n and to w o r k for success w h e n the „
future looks dark.
Bu t courage and o p t i m i s m are c h a r a c t e r i s t i c
of our A m e r i c a n people.

■
.It' is a sad fact that our efforts have had to be turned from
peaceful ways to the production of arms.
It is tragic that we
should be forced to use our resources and our intelligence and
industry in making instruments of destruction rather than
instruments for the steady upward rise in our living standard.
But it would have been far more tragic if we -- the most
powerful of the free nations -- had refused to take up the
•communist challenge to our free and democratic way. of life..
Free men in free nations, and the freedom-loving peoples now
locked behind the Iron Curtain, look to the United States for the.
defense leadership that will make them capable of self-protection.
If we fail ourselves and the rest of the .free world, all of us will
suffer beneath communist brutality.
S-2800

4
B y a c c e p t i n g the challenge, we h ave g i v e n f u r t h e r evidence
that A m e r i c a n courage t o d a y is as it has over been.
W e know
that p o w e r is the o nly language the com m u n i s t leaders understand.
B y d e t e r m i n i n g to m e e t force w i t h force we hav e done the most we
can do to l e s s e n the chance of a l l - o u t war.
But, if all-out war
comes, de s p i t e our efforts, our m i l i t a r y p r e p a r e d n e s s in the
d e f ense of our n a t i o n a l i n t e r e s t a nd the cause of f r e e d o m will
t hen stand us in good stead.
The k e y to our n a t i o n a l strength, a nd to our a b i l i t y to
f u l f i l our w o r l d r e s p o n s i b i l i t i e s , is our c a p a c i t y to produce.
That p r o d u c t i v e p o w e r is the fruit of^the h a r d w o r k a n d thrift
of s u c c e e d i n g g e n e r a t i o n s of Amer i c a n s .
The e c o n o m i c s t r e n g t h of one p a r t of the world, however,
de p e n d s to a c o n s i d e r a b l e e x t e n t on the e c o n o m i c s t r e n g t h of
other parts.
That is w h y the d e f ense o b j e c t i v e s of the free
na t i o n s are i n s e p a r a b l e .
The p r o d u c t i o n r e c ords we set d u r i n g W o r l d W a r II a nd in the
p o s t w a r p e r i o d convince me that if we continue to w o r k together
w i t h the -other free nations, we w i l l h a v e the a b i l i t y to back up
our h ope for the future.
Those records are a chr o n i c l e of the
p o s s i b i l i t i e s of a c h i e v e m e n t in a free e n t e r p r i s e s y s t e m and, more
than that, are a d e m o n s t r a t i o n of the force and v i t a l i t y of a
d e m o c r a t i c w a y of life.
Our w a r t i m e a c h i e v e m e n t s are a m a t t e r of c o m m o n knowledge.
It is n o t so w i d e l y r e a l i z e d h o w e v e r that the p o s t w a r peri o d has
b e e n m a r k e d by a n e c o n o m i c e x p a n s i o n u n p a r a l l e l e d in history.
P r i vate industry, alone, d u r i n g the p o s t w a r p e r i o d h as invested
over $11 0 b i l l i o n in n e w plant a nd equipment.
As a r e sult of this
tre m e n d o u s expansion, the output of our i n d u s t r i a l p l a n t is now
o n e - t h i r d h i g h e r tha n in the first y e a r of the p o s t w a r p e riod and
m o r e t h a n twice its p r e w a r level.
This, however, does not tell the full story.
The increase in
our n a t i o n a l income w h i c h h as a c c o m p a n i e d the p o s t w a r expansion
ha s b e e n w i d e l y d istributed.
This m e a n s that the p o t e n t i a l
m a r k e t for the p r o d u c t s of A m e r i c a n i n d u s t r y and a g r i c u l t u r e has
b e e n g r e a t l y w i d e n e d and that our a b i l i t y to m a i n t a i n continued
p r o s p e r i t y has b e e n increased.
A n o t h e r f a c t o r w h i c h h as c o n t r i b u t e d to b e t t e r l i v i n g is the
great i m p r o v e m e n t in the q u a l i t y of the goods and services that
a r e " a v a i l a b l e today.
N ew products, too -- p r o d u c t s that were not
a v a i l a b l e at a ny price a f ew years ago -- h a v e a l s o contributed
to the rise in the A m e r i c a n standard of living.
S-2800

333
- 5 The p o s t w a r p u r c h a s e s of du r a b l e c o n s u m e r goods are a n o t h e r
indication of the e c o nomic p r o g r e s s we h a v e m a d e in the p a s t f e w
years.
Since the end of the w ar we h a v e b u ilt 5 m i l l i o n n e w
homes.
I n d i v i d u a l A m e r i c a n s h a v e p u r c h a s e d 12 m i l l i o n
television sets, a p r o d u c t that w a s n ' t e v e n a v a i l a b l e before the
var. ’The n u m b e r of r e f r i g e r a t o r s in use in h o m e s has m ore tha n
A n o t h e r r e s u l t of
doubled since 1939> r e f l e c t i n g h i g h e r incomes.
our economic pr o g r e s s is the rise i n the p e r c e n t of A m e r i c a n
homes w i t h e l e c t r i c l i g h t i n g f r o m 79 p e r c e n t in 19^0 to 9^ p e r c e n t
in 19 5 0 . In fact, m a n y things we once c o n s i d e r e d luxuries are
now taking on the status of nece s s i t i e s .
M a n y of thesb p o s t w a r p u r c h a s e s of consumer goods w ere
financed"with the savings that i n d i v i d u a l s a c c u m u l a t e d d u r i n g the
course of W o r l d W a r II w h e n c i v i l i a n goods were scarce and h a r d
to get.
Savings are encouraged, a l o n g w i t h o t her reasons, w i t h
that purpose in m i n d - - t o b u i l d up a b a c k l o g of p u r c h a s i n g
power w h i c h w i l l be a v a i l a b l e for s p e n d i n g w h e n p r e s e n t l y scarce
consumer goods r e t u r n to the m a r k e t in quantity.
I should like to p o int out, also, that, on balance,
individuals h ave not r e d u c e d t h eir h o l d i n g s of l i quid assets f rom
the level r e a c h e d at the end of the war.
If anything, their
holdings of liquid assets h a v e increased, and i n d i v i d u a l h o l d i n g s
of one p a r t i c u l a r f o r m of liquid a s set
U n i t e d States savings
bonds -- h a v e i n c r e a s e d substantially.
The t o tal o u t s t a n d i n g
amount of E bonds alone n o w is n e a r l y $4 b i l l i o n gr e a t e r t h a n at
the end of W o r l d W a r II financing.
A p r i n c i p a l role of this b a c k l o g of savings has b e e n to give
courage to i n d i v i d u a l s to spend their current incomes on goods
and services.
To this f e e l i n g of a s s u r a n c e that the owners of
the savings have enjoyed, I a t t r i b u t e la r g e l y our success in
avoiding the k ind of p o s t w a r slump that has f o l l o w e d a f t e r e v e r y
other m a j o r w a r in w h i c h our N a t i o n h as b e e n involved.^
This t r u l y r e m a r k a b l e story of the a c h i e v e m e n t s of our free
enterprise e c o n o m y should give us c onfidence that we can m e e t the
goals of our d e fense program.
I a m glad to say that we hav e
already m a d e s u b s t a n t i a l strides toward that a c c o m p l i s h m e n t , w h i l e
at the same time m a i n t a i n i n g c i v i l i a n p r o d u c t i o n at a h i g h level.
The d e f e n s e effort, however, is still in its e x p a n s i o n stage
and has not yet h a d its full impact on our economy.
Plans are
still far in a d vance of performance, and the m o n t h s a h e a d w i l l be
critical,

S-2800

6
A c c o r d i n g to p r e s e n t plans, by the m i d d l e of 1952, we will
hav e d i v e r t e d a p p r o x i m a t e l y o n e - f i f t h of our total p r o d u c t i o n to
d e f e n s e p u r p o s e s . In d o l l a r terms that m e a n s we w i l l be spending
for d e f e n s e at a n a n n u a l rate of a b out $65 billion, w h i c h is
n e a r l y twice the p r e s e n t rate of defense e x p e n ditures.
In
a d d i t i o n to d i r e c t d e f e n s e e x p e n ditures, the i n d u s t r i a l expansion
p r o g r a m that Is n e e d e d to m a k e o ur d e f e n s e e f f o r t s u c c essful will
also re q u i r e a s u b s t a n t i a l share of our n a t i o n a l product.
For
in order to m e e t the d e f e n s e goals, in m a n y instances we will
h a v e to e x p a n d capacity, and in order to get the m a t e r i a l s with
w h i c h to e x p a n d capacity, we w i l l h a v e to cut b a c k in other
places.
The p r o g r a m on w h i c h we h a v e e m b a r k e d is vast -- me a s u r e d in
terms of d o l l a r costs or in terms of de m a n d s on our resources.
This i n d u s t r i a l expansion, however, w i l l p r o v i d e us w i t h the
i n c r e a s e d p r o d u c t i v e p o w e r we v i t a l l y n e e d for d e f e n s e and for
c i v i l i a n purposes.
In the past few m o n t h s i n f l a t i o n a r y p r e s s u r e s f ortunately
e n c o u n t e r e d some r e s i s t a n c e .
This d e v e l o p m e n t p r o b a b l y was to
some e x t e n t a r e a c t i o n to the f l u r r y of o v e r - b u y i n g that followed
the. K o r e a n invasion.
We should not conclude, however,, that the
end of i n f l a t i o n a r y d a ngers has c o m e .
The s h arp incree.se in d e f e n s e e x p e n d i t u r e s that is.
a n t i c i p a t e d w i l l n e c e s s a r i l y pr o d u c e a d d i t i o n a l p r e s s u r e on the
p r i c e level and lead to i n f l a t i o n unless we continue, and .improve,
our a n t i - i n f l a t i o n a r y program. The i m p o r t a n c e of anti-inflationary
action, is, I think, v e r y apparent.
I n f l a t i o n w o u l d threaten our
e c o n o m i c s t a b i l i t y and m i g h t w e a k e n our p r o d u c t i v e m a c h i n e r y to
t h e >e x t e n t that the output of v i t a l de f e n s e goods w o u l d be
endangered.
W e should strive at this time to in c r e a s e re v e n u e s to the
e x t e n t that we can put our d e fense e x p e n d i t u r e s on a pay-as-we-go
basis.
We n e e d also to continue a l l o c a t i o n s an d p r i o r i t i e s and to
m a i n t a i n a p p r o p r i a t e controls over prices, wages, rents, and
credit.
A n o t h e r f u n d a m e n t a l l y i m p o r t a n t part of our ge n e r a l program
should be the s t i m u l a t i o n of i n c r e a s e d i n d i v i d u a l s a v i n g on
a nationwide.basis.

S-28 0 0

334
- 7 I don't think we are going to have to sell thrift to the
American people. They are already good students of Benjamin
F r a n k l i n / who taught that with individuals, as well as with
businesses, financial soundness and the promise of a prosperousfuture depend to an important degree on an early accumulation of
adequate working capital.
That they have taken this lesson to
heart is clearly evidenced hy the growth in the volume of their
savings.
The nest egg of the average American family in the form
of liquid assets and its equity in life insurance has grown to
a p p r o x i m a t e l y $6,000 today from about $ 2 ,2 5 0 at the start of
World War I I .
This evening, I will join with the President in speaking
over a nationwide radio program urging Americans to get behind
the new Defense Bond savings program, which opens today, by
signing up for the payroll savings plan or the bond-a-month club,
The decision of individuals to save more and spend less will
make a tremendous difference in our ability to build up our
defenses.
The success of* our mobilization program is everyone's
personal responsibility.
The future isn't something we can leave
to the men fighting for us in Korea or to the troops on guard in
Europe.
Our national defense isn't something that any one of us
can shirk; it is n ’t something that any one of us should want to
shirk -- freedom is too important for us to take any chance of
losing it.
■#

We are engaged in a critical struggle between the forces of
liberty and justice, on the one side, and the forces of tyranny
and hate, on the other.
The stand our Nation has taken is
evidence of the eternal faith and unrelaxing determination with
which Americans have always opposed oppression in whatever form
it might show itself.
As a Nation -- and as individuals -- we
have dedicated ourselves,
I know that we will go forward with the traditional optimism
for the future that is characteristic of Americans.
As I said
before, we have the courage and we have the strength that is
needed. By working together unselfishly we can build a better
world -- a peaceful and a prosperous world where freedom and
justice are the shared heritage of all mankind.
I know that you
will be in the vanguard.
I want again to express my pleasure in being here, and I want
again to thank you for the honor you have given me.

oOo
S-2800

-

2

-

the
of customs at the port of exportation;/requirement

for customs inspection
the
and supervision of the loading of the articles for export; a m ÿ require­
ment. for the filing of the export hill of lading (or a copy) in support
of the drawback claims.
In general, the new procedure provides for the filing of a "notice
of exportation" with the collector of customs at the time the shipper's
export declaration is filed.

In lieu of customs inspection and super­

vision of lading, the collector will examine the records of his office
to determine the fact of exportation and certify on the notice of
exportation as to the fact of exportation and the name of the exporter.
This procedure will obviate the need for a bill of lading to support
the drawback entry.
After certification, the notice of exportation will be returned to
the exporter for subsequent filing with the drawback entry.

This pro-

men-^s -n eeeesary tîçj p rep are m s arawDacx enury wiunoux, n avin g to eiaaixuc

V

f f 't

4

»< # fm m

/

Proposed Press Release

merchandise, usually because of its use in the manufacture of goods
in the United States that subsequently are exported.

Similar refunds

of internal-revenue taxes are authorized in the case of flavoring
extracts and medicinal or toilet preparations manufactured with the
use of domestic tax-paid alcohol and then exported.
Refunds of 99 percent of the customs duties paid are permitted
under proper circumstances in the first class of exports; while in
the case of the products containing domestic tax-paid alcohol, the
entire amount of such taxes may be refunded.
Notice of proposed rule making, under the Administrative Pro­
cedures Act, was published in the Federal Register of September 1,
1951, together with the text of the proposed amendments.
persons have

60

Interested

days from the date of publication to make representa­

tions to the Commissioner of Customs.

No hearings will be held.

David B. Strubinger, Acting Commissioner of Customs, said the
1

proposed revision of procedures that have been in effect some
years should result in

50

savings in time and paper work for

both the drawback claimant and customs offices.
Among other changes, the proposed revisions will eliminate the
requirement for the timely filing of a "notice of intent to export"
with the collector

TR EA SU R Y D EPA R TM EN T
Information Service

WASHINGTON, D .C .

338
IMMEDIATE RELEASE,
Tuesday, S e p t e m b e r 4, 1951.

-

S-2801

The B u r e a u of Customs today p r o p o s e d rev i s i o n s of its d r a w ­
back regulations.
These r e v i s i o n s e l i m i n a t e c e r t a i n r e quirements,
and make it easi e r for c o m m e r c i a l firms to o b t a i n "drawback,"
which is a r e f u n d i n g of customs duties c o l l e c t e d on i m p o r t e d
merchandise, u s u a l l y because of its use in the m a n u f a c t u r e of goods
in the U n i t e d States' that s u b s e q u e n t l y are exported.
Si m i l a r
refunds of i n t e r n a l re v e n u e taxes are a u t h o r i z e d in the case of
flavoring e x t racts and m e d i c i n a l or toilet p r e p a r a t i o n s m a n u ­
factured wit h the use of d o m e s t i c ta x - p a i d a l c o h o l a nd t h e n
exported. .
Refunds of 99 p e r c e n t of the customs duties p a i d are p e r m i t t e d
under proper c i r c u m s t a n c e s in the first class of exports; w h ile in
the case o.f the p r o ducts c o n t a i n i n g d o m e s t i c ta x - p a i d alcohol,
the entire a m o u n t of such taxes m a y be refunded.
Notice of p r o p o s e d rule making, u n d e r the A d m i n i s t r a t i v e
Procedures Act, was p u b l i s h e d in the F e d e r a l R e g i s t e r of
September 1, 1951* t o g e t h e r w i t h the text of the p r o p o s e d a m e n d ­
ments.
I n t e r e s t e d p e r sons hav e 60 days fro m the date of p u b l i ­
cation to m a k e r e p r e s e n t a t i o n s to the C o m m i s s i o n e r of Customs.
No hearings will be held.
David B. Strubinger, A c t i n g C o m m i s s i o n e r of Customs, said the
proposed r e v i s i o n of p r o c e d u r e s that h a v e b e e n in effe c t some
50 years should result in some savings in time and p a per w o r k for
both the d r a w b a c k claimant and- customs offices.
A m o n g other changes, the p r o p o s e d rev i s i o n s w i l l e l i m i n a t e
the requirement for the t i m e l y f i l i n g of a "notice of intent to
export" w ith the c o l l e c t o r of customs at the port of exportation;
the requirement for customs i n s p e c t i o n a nd s u p e r v i s i o n of the
loading of the a r t i c l e s for export; and thè r e q u i r e m e n t f or the
filing of the e x port b i l l of l a d i n g (or a copy) in support of the
drawback claims .

339
-

2

-

In g e n e r a l , the n e w p r o c e d u r e pro v i d e s for the f i l i n g of
a "notice of e x p o r t a t i o n " w i t h the col l e c t o r of customs at the time the s h i pper's e x p o r t declaration.; is filed.
In lieu of
customs i n s p e c t i o n and s u p e r v i s i o n of'lading, the c o l l e c t o r wil l
examine the records of hi s office to d e t e r m i n e the fact of
exportation an d c e r t i f y on the n o t i c e of e x p o r t a t i o n as to the
fact of e x p o r t a t i o n a n d the name of the exporter.
This p r o c e d u r e
fell obviate the n e e d for a h i l l of l a d i n g to s u p p o r t the d r a w ­
back entry.
A f ter c e rtification, the n o t i c e of e x p o r t a t i o n w i l l be
r e t u r n e d to the e x p o r t e r for s u b s e q u e n t f i l i n g w i t h the d r a w b a c k
entry.
This p r o c e d u r e w i l l e n a b l e the cl a i m a n t to p r e p a r e his
drawback e n t r y w i t h o u t h a v i n g to e x a mine the c o l l e c t o r ' s records.

0O 0

- 3 -

any State, or any of the possessions of the United States, or by any local tax­
ing authority.

For purposes of taxation the amount of discount at which

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

Under Sections

bZ

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. ij.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

-

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 frcra 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

September 13, l?£l 9 in cash

or other immediately avail..
able funds or in a like face amount of Treasury bills maturing September 13,J S i
WW'
1
Gash and exchange tenders will receive equal treatment. Cash adjustments will be
XJ&fc”"”

made for differences between the par value of maturing bills accepted in exchange,
and the issue price of the new bills.
The income derived from Treasury bills, whether interest or gain from the
sale or other disposition of the bills, shall not have any exemption, as such,
and loss from the sale or other disposition of Treasury bills shall not have any
special treatment, as such, under the Internal Revenue Code, or laws amendatory
or supplementary thereto.
gift

The bills shall be subject to estate, inheritance,

or other excise taxes, whether Federal or State, but shall be exempt from

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

TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Thursday, September , 1951
xET

6

The Secretary of the Treasury, by this public notice, invites tenders for
$1,200,000.000

, or thereabouts, of

91 -day Treasury bills, for cash and
in the amount of $1,001.228.000 .
in exchange for Treasury bills maturing sap-ham^r 13. 19^1 ,A ° 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
December 13, 1951

September 13, 19^1 , and
iH
» when the face amount will be payable without

They will be issued in bearer form only, and in denominations of

1 000, $ 5,000, $ 10,000, $ 100,000, $500,000,

$ ,

1 000,000

and $ ,

(maturity value).

Tenders will be received at Federal Reserve Banks and Branches up to the
Daylight Saving
closing hour, two o*clock p.m., E a s t e r l y t i m e , Monday, September 10, 1951*
|
W T
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, Yirith not more than three
decimals, e. g., 99*925.

Fractions may not be used.

It is urged that tenders

be made on the printed forms and forwarded in the special envelopes which will
be supplied by Federal Reserve Banks or Branches on application therefor.
Others than banking institutions will not be permitted to submit tenders
except for their own account.

Tenders will be received without deposit from

incorporated banks and trust companies and from responsible and recognized
dealers in investment securities.

Tenders from others must be accompanied

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

T R E A S U R Y D EP A R TM EN T
Information Service

Wa s h i n g t o n ,

d .c

.

343
REIjEASE m o r n i n g n e w s p a p e r s ,
Thursday, S e p t e m b e r 6, 1 9 5 1 .

S-2802

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 f o r ' $ 1 , 2 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 ex c h a n g e for T r e a s u r y bills m a t u r i n g 'September 1:3,
, in the a m o u n t of $ ,
,
,
, to be i s s u e d on a d i s c o u n t
basis u n der c o m p e titive a nd 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 bills of this series w i l l be d a t e d S e p t e m b e r 13, 1951,
and will m a t u r e D e c e m b e r 13, 1951, w h e n the face a m o u n t w i l l be
payable w i t h o u t interest.-’ T h e y w i l l be issu e d in b e a r e r f o r m only,
and in d e n o m i n a t i o n s of $1,000. $5,000, $10,000, $100,000, $
,
,
and $1,0 0 0 , 0 0 0 ( m a t u r i t y value).

1951

1 001 228 000

500 000

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 a n d B r a n c h e s
up to the c l o s i n g hour, two o ' c l o c k p.m., E a s t e r n D a y l i g h t S a v i n g
time, Monday, S e p t e m b e r 10, 1951.
Te n d e r s w i l l n ot be r e c e i v e d at
the T r e a s u r y D e p a r tment, 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
even m u l t i p l e of $1,000, and in the case of c o m p e t i t i v e tenders the
price o f f ered m u s t be e x p r e s s e d on the basis of 100, w i t h n o t mor 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 be m a d e on the p r i n t e d forms an d f o r w a r d e d in
the special e n v e l o p e s w h i c h w i l l be su p p l i e d b y F e d e r a l R e s erve
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 cept for their o wn a c c o u n t . Tenders 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 banks and trust companies
and from r e s p o n s i b l e an d r e c o g n i z e d de a l e r s in i n v e s t m e n t
securities.
T e 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 percent of the- face a m o u n t of T r e a s u r y bills a p p l i e d for, u n less
the tenders are a c c o 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 by an
incorporated 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 Federal R e s e r v e B a nks and 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 p r ice 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 g h t to a c c e p t or
reject a ny or a ll tenders, in w h ole or in part, and h is a c t i o n in
any such r e s p e c t shall be final. S u b ject 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
from 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 av e r a g e price

■

2;'r

1 t a t ' tia-taa

(in throe 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 - b i d s ., 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 orc 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 S e p t e m b e r 13, 1951, in
-caah.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 amount
of T r e a s u r y bills m a t u r i n g S e p t e m b e r 13, 1951. # Cash, and exchange
tenders w i l l re 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 par value 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 price of the n e w b i l l s .
The income d e r i v e d f r o m T r e a s u r y b i lls, w h e t h e r i n t erest 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, shall not
h a v e a n y exemption, as such, a nd loss f r o m the saJ.e or other
d i s p o s i t i o n of T r e a s u r y bills shall 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.
The b i lls s h all be subject to estate,
inheritance, gift or other excise taxes, w h e t h e r F e d e r a l or State,
b u t shall be exempt from a ll t a x a t i o n n o w or h e r e a f t e r imposed on
the p r i n c i p a l or inter 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 authority.
F o r p u r p o s e s of t a x a t i o n the a m ount of d i s c o u n t at w h i c h Treasury
bills are o r i g i n a l l y sold b y the U n i t e d States shall be considered
to be interest.
U n d e r S e c tions 42 a n d 117 (&) (!) of.the Internal
R e v e n u e Code, as a m e n d e d by S e c t i o n 113 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 issu e d h e r e u n d e r are sold
shall n ot be c o n s i d e r e d to accrue u n t i l such bills shall be sold,
r e d e e m e d or otherwise d i s p o s e d of, and such bills are e x c luded ,
f r o m c o n s i d e r a t i o n as c a pital assets.
A c c o r d i n g l y , the owner of
T r e a s u r y b i lls (other t h a n life ins u r a n c e companies) i s sued
h e r e u n d e r n e e d include in his income tax r e t u r n o n l y the
d i f f e r e n c e b e t w e e n the price pai 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 actually
r e c e i v e d e i t h e r u p o n sale or r e d e m p t i o n at m a t u r i t y d u r i n g the
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 Cir c u l a r No. 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 bills a nd g o v e r n the
con d i t i o n s of their issue.
Copies of the ci r c u l a r m a y be obtained
frotn a n y F e d e r a l Re s e r v e B a n k or Branch.

oOo

I M M E D I A T E RELEASE,

Friday, September 7> 1951»

Secretary Snyder, in his capacity as United States
Governor of the International Monetary Fund and the
International Bank for Reconstruction and Development, today
made public the composition of the United States delegation
to the Sixth Annual Meeting of the Boards of Governors of
the Bank and Fund, scheduled to be held at the Shoreham
Hotel in Washington, D. C., commencing on Monday,
September 10, 1951. Membership of the delegation is as
follows:
John W. Snyder, United States Governor of the International
Bank and the International Monetary Fund; James E. Webb,
Alternate, United States Governor of the International Bank
and the International Monetary Fund; Burnet R, Maybank,
Chairman of the Banking and Currency Committee, U. S. Senate,
Adviser; Homer E. Capehart, Banking and Currency Committee,
U. S. Senate, Adviser; Brent Spence, Chairman of the Banking
and Currency Committee, U. S. House of Representatives,
Adviser; Jesse P. Wolcott, Banking and Currency Committee,
U. S. House of Representatives, Adviser; Charles Sawyer,
Secretary of Commerce, Adviser; William McChesney Martin, Jr.,
Chairman of the Board of Governors of the Federal Reserve
System and U. S. Executive Director of the International
Bank, Adviser;
William C. Foster, The Administrator for Economic
Cooperation, Adviser; Harry A. McDonald, Chairman of the
Securities and Exchange Commission, Adviser; Willard L. Thorp,
Assistant Secretary of State for Economic Affairs, Adviser;
Hawthorne Arey, Vice Chairman of the Board of Directors of
the Export-Import Bank, Adviser; Allan Sproul, President of
the Federal Reserve Bank of New York, Adviser; Frank A.
Southard, Jr., U. S. Executive Director of the International
Monetary Fund, Adviser; John S. Hooker, Alternate U. S.
Executive Director of the International Bank and the
International Monetary Fund, Adviser; Thomas J. Lynch,
General Counsel, Treasury Department, Adviser; George H.
Willis, Director of the Office of International Finance,
Treasury Department, Adviser; James J. Saxon, Assistant
to the Secretary, Treasury Department, Adviser.

oOo

-

345

IMMEDIATE RELEASE,
Friday, S e p t e m b e r 7 5 1951«

S-2803

S e c r e t a r y Snyder, in h is c a p a c i t y as U n i t e d States G o v e r n o r
of the I n t e r n a t i o n a l M o n e t a r y F u n d a nd the I n t e r n a t i o n a l B a n k
for R e c o n s t r u c t i o n and D e v e l o p m e n t , t o d a y m a d e p u b l i c the
composition of the U n i t e d States d e l e g a t i o n to the S i xth A n n u a l
Meeting of the B o a r d s o f G o v e rnors of the B a n k a nd Fund,
scheduled to be h e l d at the S h o r e h a m H o t e l in Washington,- D.C.,
commencing on Monday, S e p t e m b e r 10, 1951.
M e m b e r s h i p of the
delegation is as follows:
J o h n W. Snyder, U n i t e d States G o v e r n o r of the I n t e r n a t i o n a l
Bank and the I n t e r n a t i o n a l M o n e t a r y Fund; James E. Webb, A l t e rnate,
United States G o v e r n o r of the I n t e r n a t i o n a l B a n k a n d the
International M o n e t a r y Fund; B u r n e t R. Maybank, C h a i r m a n of the
Banking a nd C u r r e n c y Committee, U. S. Senate, Adviser;
Homer E. Capehart, B a n k i n g a nd C u r r e n c y Committee, U. S. Senate,
Adviser; B r e n t Spence, C h a i r m a n of the B a n k i n g and C u r r e n c y
Committee, U. S. H o u s e of R e p r e s e n t a t i v e s , /adviser; Jesse P.
Wolcott, B a n k i n g a nd C u r r e n c y Committee, U. S. H o u s e <of
Representatives, A d v iser; Charles Sawyer, S e c r e t a r y of Commerce,
Adviser; 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 of the B o a r d of
Governors of the F e d e r a l R e s e r v e S y s t e m and U. S. E x e c u t i v e
Director of the I n t e r n a t i o n a l Bank, Adviser;
W i l l i a m C. Foster, The A d m i n i s t r a t o r for E c o n o m i c
Cooperation, Adviser; H a r r y A. McDonald, C h a i r m a n of «the
Securities an d E x c h a n g e Commission, Adviser; W i l l a r d L. Thorp,
Assistant S e c r e t a r y of State for E c o n o m i c Affairs, Adviser;
Hawthorne Arey, V i c e C h a i r m a n of the B o a r d of D i r e c t o r s of the
Export-Import Bank, Adviser; A l l a n Sproul, P r e s i d e n t of the
Federal R e s e r v e B a n k of H e w York, Adviser; F r a n k A. Southard, Jr.,
U. S. E x e c u t i v e D i r e c t o r of the I n t e r n a t i o n a l M o n e t a r y Fund,
Adviser; J o h n S. Hooker, A l t e r n a t e U. S. E x e c u t i v e D i r e c t o r of
the I n t e r n a t i o n a l M o n e t a r y Fund, Adviser; Thomas J. Lynch,
General Counsel, T r e a s u r y D epartment, Adviser; George H. Willis,
Director of the Office of I n t e r n a t i o n a l Finance, T r e a s u r y
Department, Adviser; James J. Saxon, A s s i s t a n t to the Secretary,
Treasury D e p a rtment, A d v iser.

0O 0

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oloat of tirai f«r f ilia * rotura* to *1* aeatba, ao « to n e le s of tla * feoymà
Septoa&or ü * 1991* or Ootofeor 1§# 1»1 o* t la *o*o aay bo» a a f feo croate*
with roapoot to «rafe toaafelo fiar*« lo ra eo r, proposo* lo g i* lo tie n 1* paadlstg
«aïoli wool* oxtoaé tbo parlo* for wbioh tfe* C«*ai**loaor aay «ront oxtonolra«
o f tla» fo r raob toxofelo peor* la ibo oooo of oorporatiea» »«fe^oot to tb*
oxooo* ir o fit * toa lapo«»* I f tbo i a m P ro fit* toa Aot o f 19*0« Ao««r*la|ly#
Su t la oooo of o «orporoiiaa rabjoot to tbo oxoo** p ro fits toa «feiob to* b*«a
groato* o» oxto&sle» o f tla * to Soptaabor Ü * 1991, or Ootafeor U« 19*1 o*
tfe* oo*o ray feo, w itb roopoot to * toxofelo prar dosorlbo* la porairopli 1#
obsto» eoUoetor* ® f oatortoia application* fa r oa extension o f tia * # aot
boyen* MmmMr 1», 1991, fa r fillm s rotura* o f t la toso* tapora* fey otoptor
1 of lia Co*o for raofe toxofelo yoor« C o llra to r* m f grmat «rafe extension*
eatóltlerató, t e a m » vrpen tbo « M it a it of le g ta lo tlsa ««thartilfti; raob
extoasira». f ia oxtoaoi«n t t U tobe offo ot «alp i f i a h lé g is la tio n i*
«aootoê«
f* A U oorparotlra* oro sofejoet to oxsos* p ro fit* to* w itbta tbo
raeaiag «f porogropii f eraept tbooo « p ra ifle o llp ***apto* ratóer ra o tira
*94 o f tbo Soi#«
4« Corroapoadoaeao r o p r iim f tb i* «Uaogropb shoul* ro ta r to it* araber
«a* tb» syxbols ItiPiCA.

íSifned) John B Dunian

j<m
Ita lie * D ls t iib o tlin

9«tmuf

Coaairaloner

PRESS RELEASE

The Commissioner of Internal Revenue today issued instructions
to collectors of internal revenue with respect to the granting of
extensions of time for the filing of income tax returns by corpora­
tions for taxable years ending after June 30, 1950, and before
February 1, 1951*
The law now provides that extensions of time for filing returns
may be granted up to six months beyond the due date* The Commissioner
has granted such extensions to September 15 in the case of many
corporations* Legislation is now pending before the Senate which
would give the Commissioner authority to grant further extensions
of time to November 15, 1951* In the light of such pending legisla­
tion, the Commissioner has informed collectors that they may enter­
tain applications for further extensions of time, but not beyond
November 15, 1951, for the filing of income tax returns by corpora­
tions subject to the excess profits tax for any taxable year ending
after June 30, 1950, and before February 1, 1951, where an extension
has already been granted until September 15, 1951.
Such extensions will be conditioned upon the enactment oi
effect only if such legisla­
tion is enacted*

tvrrywajjirinite legislation and will take

T R E A S U R Y

D E P A R T M E N T

Information Service
%

kmmmi' ytèkt mmmrmk im m sul to vmmimimmd mtt
odi «# iooqom. é tto miao*** im m ani to owiootioo • !
%4 omitfm mad mmami, to $tt$JE$k odd
- mtii to omioaodwo
oimtm‘ kao t 0 4 f l (M must» «totto gitikam o* oo% oldaauat n o i orni#
•Ikdi, «I Tf^msieT

TIMMEDIATE RELEASE,

343

*

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ynm t a o o m odd a i 31
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oehd ing

tm wwiW ffl

:grrc u r Tnrcrr ’pelxxlfig' ilm lg a tT W i. ■' tignoMBim B iy r o r
I n f o r m e d collectors that the y m a y o n t e r l m n ^ f i ^ f i o n s
for f u r t h e r e x t e n s i o n s of time, but not b e y o n d N o v e m b e r 15,
, f o r the f i l i n g of income toe r e t urns by corpo r a t i o n s
subject to the excess p r o f i t s .tax for a n y taxable y e a r
e n d i n g a f t e r June 30, 1950, and before F e b r u a r y 1, 1951,
where a n e x t e n s i o n has a l r e a d y b e e n g r a nted u n t i l
S e p t e m b e r 15, 1 9 5 1 .

1951

Such e x t e n s i o n s w i l l be c o n d i t i o n e d u p o n the e n a c t m e n t
of a u t h o r i z i n g l e g i s l a t i o n and w i l l take e f f e c t o n l y if .such
l e g i s l a t i o n is enacted.

T I » C r o m U a ir o a r a f l a t a n »l E m i s i ta d a y M M i i a a t r u a t i a a s
t a o o i l e a t o r i « £ i n t a r m i r a r o a u a w itfe r o a y a a t t * t i » g r a n t l a g ® f
a a t a n s l a a s a f t í a » f a r t i » f i l l a g # f I n s a n a t a s r o t a r a s fey « a r p a r a t í o s » f a r t u n t l a y » r i « a d l a g a f i a r «lisa» 1 0 , 1 0 1 0 , « a d b a f a r a
fa fe ru a ry 1 , 1061«

Tt» lsv aro prroid«» t la t extensión» ©f tía » far f i l i a * rotura«
roy fea groatad «p ta «la aroths bayrod tfea dua ésta* Tfea Croad asi mar
tas grsst#a malí «staasim s t a gapt «afear W la tfea rosa a f may
«aryaratlm «* U g isia tla a 1« aro paodlag feafara tfea Smata «blafe
wmld giro tfea Carolasiroar autfearlty t a graat furthar «staaalsa*
a f tía » ta Saroafear 11, 1911. la tfea IlgÉst af suafe paadlag lag lslatir o , t i » Cañadsslsaar feas lafarosd aallaatars tfest tfeay roy «atarta la a f f i l a s t i «as far fo re ro «xtanaim» i f tir o , feut a st baymd
feavrofear 11, 1011, far tfea f ill a g « f iaaaro ta s rotura« fey «orparatio as «tfejaat ta tfea amaaas g rafita tas far asy tasafela yror «adiar,
a fta r dm* 10, 1Ü0, «ad feafara Fabruary 1, 1Ü1, «feara aa «staaairo
feas alrrody feaaa groatad u atll Saptaatoar l l , l i l i *
Suafe axtaaalaaa a l l í fea aoaAltlanad «psa tfea am atm at « f xStk<%r-r
laglalatlaa aaá « 1 1 1 tafea affaat m ly I f ««afe la g l «la­
tían 1« aaaatad*

I M M E D I A T E RELEASE,
Thursday, S e p t e m b e r 6,

1951.

3-2804

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 t o d a y i s sued
i n s t r u c t i o n s to c o l l ectors of i n t e r n a l r e v e n u e w i t h r e s p e c t
to the g r a n t i n g of e x t e n s i o n s of time for the f i l i n g of
income tax r e t urns b y c o r p o r a t i o n s for t a x able y e ars e n d i n g
after June 30, 1950, and before F e b r u a r y 1, 1951.
The law n o w p r o v i d e s that e x t e n s i o n s of time for f i l i n g
returns m a y be g r a n t e d up to six m o n t h s b e y o n d the due d a t e , ,
The C o m m i s s i o n e r h as g r a n t e d such e x t e n s i o n s to S e p t e m b e r 15
in the case of m a n y c o r p o r ations.
L e g i s l a t i o n is n o w p e n d i n g
before the Senate w h i c h w o u l d give the C o m m i s s i o n e r a u t h o r i t y
to grant f u r t h e r e x t e n s i o n s of time to N o v e m b e r 15, 1951.
In the light of such p e n d i n g legislation, the C o m m i s s i o n e r
has i n f o r m e d c o l l ectors that t h e y m a y e n t e r t a i n a p p l i c a t i o n s
for f u r t h e r e x t e n s i o n s of time, but not b e y o n d N o v e m b e r 15,
1 9 5 1 , for the f i l i n g of income tax returns by corpo r a t i o n s
subject to the excess p r o f i t s tax for a n y t a x able yea r
e n d i n g a f t e r June 30, 1950, an d before 'February 1, 1951,
where a n e x t e n s i o n ha s a l r e a d y b e e n g r a n t e d u n t i l
S e p t e m b e r 15, 1951.
Such e x t e n s i o n s w i l l be c o n d i t i o n e d u p o n the e n a c t m e n t
of a u t h o r i z i n g l e g i s l a t i o n an d w i l l take e f f e c t o n l y if such
l e g i s l a t i o n is enacted.

0O 0

The women of Cedar City, Utah have lost no time in putting that
western community in the forefront of the Defense Bond Drive news.

Women

residents of Cedar City, encouraged ty their county Savings Bonds Chairman,
young Sheldon Olds, decided to show the men folks of the town how a
Defense Bonds campaign should be conducted, and succeeded so well that
Cedar City over-subscribed on the first day of the drive the quota which
it had set for itself.
The women campaigners extended their efforts to all of Iron County
in which Cedar City is located, and are now busily engaged in making house
to house bond-selling calls.
County Chairman Olds first got together about 20 wives, mothers, sisters
and sweethearts of Cedar City men now fighting in Korea, and put the Defense
Bond Drive question up to them.

They agreed to take over the job —

first pledging to buy bonds for themselves.

after

Soon the movement had gained

such momentum that a county—wide organization of women was formed.
The one bank in Cedar City stayed open all of Labor Day to sell Defense
Bonds, and total sales passed the $18,000 mark, against a $15,000 quota which
the women had decided upon.

Cedar City has 10ii men in the 213th Field

Artillery Battalion, which has been federalized and sent into action.

Thgxr--

Their women relatives pledged themselves to buy a bond for each artilleryman.
Cedar City took an active part in an earlier U. S. Savings Bonds campaign.
In 19 h 9 , Mayor Parry arranged to supply the covered wagons that were used to
advertise the "Opportunity Drive” of that year.

T R EA SU R Y D EPA R T
Information Service
351
IMMEDIATE RELEASE,
Thursday^ S e p t e m b e r 6,

1951»

S-2Ô05

The w o m e n of C o d a r City, U t a h h a v e lost no time in p u t t i n g
that w e s t e r n c o m m u n i t y in the f o r e f r o n t of the D e f e n s e B o n d
Drive news.
W o m e n r e s i d e n t s of Cedar City, e n c o u r a g e d by
their c o unty Savings B o n d s Chairman, y o u n g S h e l d o n Olds, d e c i d e d
to show the m e n folks of the tow n h o w a D e f e n s e B o n d s c a m p a i g n
should be conducted, a n d s u c c e e d e d so w e l l that C e dar C i t y o v e r ­
subscribed on the first d a y of the drive the q u o t a w h i c h it h a d
set for itself.
The w o m e n c a m p a i g n e r s e x t e n d e d t h eir efforts to a l l of
Iron County, in w h i c h Cedar Cit y is located, a n d are n o w b u s i l y
engaged in m a k i n g h o u s e to h o u s e b o n d - s e l l i n g calls.
C o u n t y C h a i r m a n Olds first got to g e t h e r a b o u t 20 wives,
mothers, sisters and s w e e t h e a r t s of C e d a r Cit y m e n n o w f i g h t i n g
in Korea, a nd put the D e f e n s e B o n d D r ive q u e s t i o n up to them.
They a g r e e d to take over the job -- a f t e r first p l e d g i n g to
buy bonds for themselves.
S o o n the m o v e m e n t h a d g a ined such
momentum t h a t - a coun t y - w i d e o r g a n i z a t i o n of w o m e n was formed.
The one b a n k in C e dar C ity stayed o pen al l of L a b o r D a y
to sell D e f e n s e Bonds, and total sales p a s s e d the $ 1 8 , 0 0 0 mark,
against a $ 1 5 ,0 0 0 q u o t a w h i c h the w o m e n h a d d e c i d e d upon.
Cedar C i t y h as 104 m e n in the 2 1 3 t h F i e l d A r t i l l e r y B a t t a l i o
which has b e e n f e d e r a l i z e d a nd sent into action.
Their women
relatives p l e d g e d .themselves to b u y a bon d for e a c h a r t i l l e r y m a n .
Cedar C i t y too k a n a c tive par t in a n e a r l i e r U. S. Savings
Bonds campaign.
In 19*1-9, M a y o r P a r r y a r r a n g e d to s u p p l y the
covered w a gons that were u s e d to a d v e r t i s e the " O p p o r t u n i t y
Drive" of that year.

oOo

BE
&

f

«

nroent
l assure you of my deep personal
Interest
.1¡1||gl|

1

In all of your endeavors,
. |||

, 'v-

;. . '

and iiy a p p r e c l a t I o n of the privi l e ge
of m e e t i n g » I til you here tonight.

and Senate.

UpDroorlati ns for

the Service for the current fiscal
year will enable the Service to
carry on its activities on an
adequate sea I
To the expectations of the
Congress, of the public, and all
of the officials directly
responsible for Bureau of internal
Revenue activities,

1 am sure you

and your fellow Revenue Service
werxers » J J{ measure up fully,

in

ase

- 27

free from any suspicion of dishonesty
or fro» any deliberate cheating.
That is a tremendous tribute to
American spirit and American
character,

it is this record

which enables the Revenue Service
to collect each $100 of Federal
Revenue at an over-all cost of
only a little over 1/2 of one
•
percent of the total collected
Just think of that.

Isn't that a

splendid record?

■

will be well,

if the time ever

came when they lost confidence in

records

Servsce

its e If f
statement.

the income tax returns received by
the

Revenue

Service each year are

/

82E

tax iit ion«

to a

rea

course of
i,j»
n^ocess»

favoritism, from fraud
¿1 *>

o

consiaer
serving of tneir confidence, a I

I do not want you to
believe -- nor the American public
generally to think —

that the

activities of the racket squads
affect directly any considerable
percent of American taxpayers.
Most people pay their taxes
honestly and fairly.

As in no

other country on earth, the
United States depends for the
major support of its Federal
Government on a voluntary system

having informati

identity of indi
such information

*

t

k

*

taking action for
inning of

P ri»

iVf in A p r i l through

J u l y 31,
ith

In

f vCw*

f v t

it is not a
course, from income tax frauds
Iiquor
w

.

i le

already been obtained.

yip

1 In practically all racKeteer
tax cases, the Bureau manes use of
jeopardy assessments.

As you Know,

such an assessment becomes effective
immediately as a lien against real
estate or as a basis of authority
to seize bann deposits or other
m

’

.

_

-.

'

property to satisfy the assessment.
This is in contrast to jthe
leisurely process of awaiting a
final determination, perhaps long

which is under way.

I am Informed

that 19,740 cases have been
assigned to the Special Racket Squads
so far, and that active investigation
already is unaer way in 6 , ITS of
these.

I am referring only to

cases that are considered as coming
within the racketeer classification.
A great many of these
invest igat Ions are, of course, of
longer standing than the life of
the Special Racket Squads.

On some

short

I

2

O

\c

p ir y

Ice In

W C ili

bi li tï es already have «ou

à u

c o n s p i c u o u s recognition,

end

i ! I « in more.

He

I
o e

I ff

fWi 1

fu liest coni#

mon tns ago Genera I Dunlap was called
orn
ft In
fi

10

4P*"

J% C.' f|

iton to direct

more effective coordination
**

wo r k

»,

s,

p

♦

¡ f

m

j m

g ì

Hi'i
*

running down tax ev

TCW K »

9

profess ione I criminal type.
1 8

d, of course, always given special

Co iIector's oft ice.

it was a Iarge

award as awards go and the winner,
who made his suggestion under the
impression that he was just turning
in a small

idea, was considerably

surprised when he learned of the
award. ' «hen it was explained to
him that his idea, applied
nationally» caused savings of 1$?,uuu
he said,

"Well,

I never knew so

little could mean so m u c h . ”
He was a craftsman,

interested

H i
*■*
L ;...'

IO

t h e ìr work and p r o u d of their
efficiency.

They have the pride of

good c r aftsmen and they make good
/

■

m a n a g e m e n t progr a m s succeed.
encouragement,
that,

they make s uggestions

taken together,

of dollars

Given

total millions

in savings and solid
i

advances

in efficiency.

I want to call
an

incident

Program.

in our

Recently,

to an e m p l o y e e

to your attention
incentive Award
we awarded $375

in the A r k a n s a s

req u i r e s a

not

.cues

ery învoI
a d m i n i s t r a t i o n of
«

you respond,
vital,

you will be playing a

personal

part

in p r o t e c t in g

the Unit e d States and
the sort of world
to

in preserving

in which *e want

I ive.
The Bureau has,

of course,

become better ana better equipped
in every way for
task.

its tremendous

A great many

improvements

have been made during the past few
years

in the m a n a g e m en t and

o p e r a t i o n s of the Revenue Service.

8TS

-

5

-

Service that the closest scrutiny
finds only a rel a t i v el y
■

insignifleant numb e r of dep a r t u re s
from honest and
duty.

loyal di s c h a r ge of

That t radition

is s o m e t h i ng

of w h i c h we are a 11 proud,

something
y

which we all cherish,

and something

which we are d e t e r m i n e d to preserve.
In the present period,
the nation

is engaged,

free nations,

when

wi t h other

in s t r e n g t h e n i n g our

defen s e s against the.t h r ea t of

The p e r f o r m an c e record of the
Revenue Service must of n e c e s s i t y
stand the closest scrutiny.

This

could not be otherwise -- and none
of us wouid expect
o t h e r w i s e --

it to be

in view of the huge

size and variety of the revenue
c o l l e c t i o n s with which the Service
has come to be charged by

law. and

the great number of citizens from
wh o m these c o l l e c t i o n s are made.
1

it has become tradition

in the

TREASURY DEPARTMENT
Washington

The follow ing address by Secretary Snyder before th e a n n ia l
convention o f the N ational A ssociation of Employees o f
C o lle cto rs o f In te rn a l Revenue in Public H a ll, Cleveland,
Ohio, i s scheduled fo r d eliv ery a t 8 P«M» EDT Saturday,
September 8 , 1951> and i s fo r re le a se a t th a t time»

385

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
before the a n n u a l c o n v e n t i o n of the
N a t i o n a l A s s o c i a t i o n of E m p l o y e e s of
Col l e c t o r s o.f I n t e r n a l R e v e n u e in Public
Hall, Cleveland, Ohio, is s c h e d u l e d for
d e l i v e r y at 8 P,M. E D T Saturday,
S e p t e m b e r b, 1951» an d is for release" at
that t'ime l"
’~

This g r oup is a cross s e c t i o n of a b o d y of m e n and w o m e n wh o
in a v e r y r e a l sense r e p r e s e n t the h o m e front of the p r e s e n t
emergency.
It gives me great p l e a s u r e to m e e t w i t h y o u tonight,
to ackn o w l e d g e y o u r co n s c i e n t i o u s and e f f e c t i v e service to the
Government and to the public, a n d to r e m a r k on the v i t a l n e c e s s i t y
of not o n l y c o n t i n u i n g but f u r t h e r i m p r o v i n g that service to the
greatest p o s s i b l e exte n t as we p r o c e e d w i t h the d e f e n s e of
America a nd the free world.
The e m p l o y e e s of the C o l l e c t o r s of I n t e r n a l R e v e n u e for m a
very large segment of the staff of w h a t I t h ink is u n d o u b t e d l y
one of the m o s t i m p o r t a n t of a ll G o v e r n m e n t bureaus.
The
personnel of the I n t e r n a l R e v e n u e S e r vice has a r e s p o n s i b i l i t y
which e x t ends c o n s i d e r a b l y b e y o n d that of c o l l e c t i n g the F e d e r a l
revenues, great as that p r i m a r y r e s p o n s i b i l i t y is.
P r o b a b l y fe w
other large groups of F e d e r a l e m p l o y e e s come so c l o s e l y a n d so
constantly into p e r s o n a l contact w i t h the A m e r i c a n public.
In
effect, that m e a n s e v e r y R e v e n u e S e r vice of f i c e r and e m p l o y e e is
a Government p u b l i c rel a t i o n s r e p r e s e n t a t i v e .
I a m glad to say
that y o u r success in this role d o w n the years since 1913 has b e e n
of a h i g h order.
The p e r f o r m a n c e r e c o r d of the R e v e n u e Service m u s t of
necessity stand the closest scrutiny.
This could n ot be o t h e r ­
wise -- a nd none of us w o u l d e x p e c t it to be ot h e r w i s e -- in v i e w
of the h u g e size and v a r i e t y of the r e venue coll e c t i o n s w i t h w h i c h
the Service h a s come to be charged b y law, a nd the great n u m b e r of

S-2Ô06

386
2
citizens f r o m w h o m these coll e c t i o n s are made.
It h as b e c o m e
tradition in the Service that the closest s c r u t i n y finds onl y a
relatively i n s i g n i f i c a n t n u m b e r of d e p a r t u r e s fro m h o n e s t and
loyal d i s c h a r g e of duty.
That t r a d i t i o n is s o m e t h i n g of w h i c h we
are all proud, s o m e t h i n g w h i c h we all cherish, and s o m e t h i n g w h i c h
we are d e t e r m i n e d to preserve.
In the p r e s e n t period, w h e n the n a t i o n is engaged, w i t h other
free nations, in s t r e n g t h e n i n g our d e f e n s e s a g a i n s t ^ t h e threat of
Communist aggression, we are a ll p a r t i c u l a r l y conscious of our
responsibility.
The defense effo r t is t r e m e n d o u s l y costly.
It
creates c o l l a t e r a l p r o b l e m s h a v i n g to do w i t h the s t a b i l i t y of the
whole A m e r i c a n economy.
To m e e t i n c r e a s e d G o v e r n m e n t costs,
increased tax p r o grams are u n der consideration.
To w h a t e v e r
extent taxes rise, the o b l i g a t i o n of the R e v enue Service becomes
still mor e urgent.
As y o u respond, y o u w i l l be p l a y i n g a vital,
personal p art in p r o t e c t i n g the U n i t e d States and in p r e s e r v i n g
the sort of w o r l d in w h i c h we w a n t to live.
The B u r e a u has, of course, beco m e b e t t e r and b e t t e r e q u i p p e d
in every w a y for its t r e m e n d o u s task.
A great m a n y i m p r o v e m e n t s
have b e e n m ade d u r i n g the past few years in the m a n a g e m e n t and
operations of the R e v e n u e Service.
As a m a t t e r of g r eater
efficiency, mor e and m o r e f u n c tions have b e e n d e l e g a t e d to the
field "services, p a r t i c u l a r l y to offices of collectors.
To m o s t
taxpayers, you, in our local offices, are the B u r e a u of I n t e r n a l R e v enue.
N e w tec h n i q u e s a nd n e w de v i c e s are b e i n g d e v e l o p e d and
installed to m i n i m i z e the d r u d g e r y in v o l v e d in the a d m i n i s t r a t i o n
of this v a s t . a n d c o mplex organization.
As those are put into use,
increasing nu m b e r s of our p e ople w i l l be r e l e a s e d f r o m the
porformance of r o u tine tasks, and w i l l be able to devote their
time and e f f orts to w o r k that requires a h i g h e r degree of
individual skill an d i n d i v i d u a l thinking.
The i m p r o v e m e n t in the Re v e n u e Service w h i c h we h a v e seen
would not be p o s s i b l e if G o v e r n m e n t e m p l oyees w e r e n o t I n t e r e s t e d
in their w o r k and p r o u d of their e fficiency.
T h e y h a v e the pride
of good c r a f t s m e n and they m a k e good m a n a g e m e n t pro g r a m s succeed.
Given encouragement, the y m a k e s uggestions that, t a k e n together,
total m i l l i o n s of d o l lars in savings and solid a d v a n c e s in
efficiency.

387
- 3 -

1

w a n t to call to you r a t t e n t i o n a n i n c ident in our
Incentive A w a r d Program.
Recently, we a w a r d e d $375 to an
employee in the A r k a n s a s C o l l e ctor's office.
It was a large
award'as a w a r d s go an d the winner, who m a d e his s u g g e s t i o n under
the im p ressio n that he was just t u r n i n g in a small idea, was
considerably s u r p r i s e d w h e n he l e a rned of the award.
W h e n it was
explained to h i m that his idea, a p p l i e d n ationally, caused savings
of $37,000, he said, ’’Well, I n e v e r k n e w so little could m e a n so
m u c h ."
He was a craftsman, i n t e r e s t e d in his work, a l e r t to its
needs and g e t t i n g s a t i s f a c t i o n f rom it.
And. he was well, e n t i t l e d
to the r e c o g n i t i o n he received.
I a m g r a t i f i e d that this c o n v e n t i o n gives to those of y o u who
did not a l r e a d y k n o w h i m a chance to become a c q u a i n t e d w i t h the
new C o m m i s s i o n e r of I n t e r n a l Revenue, G e neral Dunlap.
He is a
product of l ong and v a r i e d e x p e r i e n c e in the R e v e n u e Service,
plus o u t s t a n d i n g service in the A r m e d Forces.
His abilities
already hav e w o n c onspicuous r ecognition, and I a m sure the y will
win more.
He has m y f u l l e s t confidence.
O n l y a few m o n t h s ago
General D u n l a p was called f r o m Texas to W a s h i n g t o n to dire c t the
more e f f e ctive c o o r d i n a t i o n of the w o r k of the R e v e n u e Service in
running d o w n tax evaders of the p r o f e s s i o n a l c r i m i n a l t y p e . We
had, of course, always g i v e n s p e c i a l a t t e n t i o n to such tax
dodgers as gamblers a nd racketeers, a nd we h a d not o nly c o l l ected
large sums in a d d i t i o n a l taxes but als o h a d m a d e m a n y of these
people fee l the full w e i g h t of c r i minal p e n a l t i e s for tax
delinquency.
In order to get still b e t t e r results, G e n e r a l D u n l a p
was as s i g n e d the tas k of s e t t i n g up
special r a c k e t squads in
Revenue Service offices t h r o ughout the country.
The m a n p o w e r of
these squads totals a b out 2 , 400 persons, and includes m a n y of our
most expe r t personnel.

117

I a m glad to be able to r e p o r t to y o u that in the few m o n t h s
since they b e g a n operations, the s p e cial r a c k e t squads have
produced e x c e l l e n t results.
F o r the p e r i o d b e g i n n i n g in late A p r i l and e n d i n g J u l y 31,
of this year, the Sp e c i a l T ax F r a u d D r i v e of the racket squads
yielded a d d i t i o n a l tax a ssessments, i n c l u d i n g penalties, t o t a l i n g
$5,627,34-5.34.
In 24 cases, c r i minal p r o s e c u t i o n was r e c o m m e n d e d .
These a d d i t i o n a l a s s e s s m e n t s and p r o s e c u t i o n r e c o m m e n d a t i o n s w ere
the out g r o w t h of 4-74 c o m p leted investigations.

388
- 4 These r e s ults for such a short p e r i o d are c e r t a i n l y
impressive.
B u t t hey do not, b y a n y means., indicate the full
scope of the w o r k w h i c h is u n d e r way.
I a m i n f ormed that
19,740 cases have b e e n a s s i g n e d to the S p e c i a l R a c k e t Squads so
far, and that a c tive i n v e s t i g a t i o n a l r e a d y is u n d e r w a y in 6 , 175
of these.
I a m r e f e r r i n g only to cases that are' c o n s i d e r e d as
coming w i t h i n the r a c k e t e e r c l a s s i fication.
A great m a n y of these i n v e s t i g a t i o n s are, of cour'se, of
longer s t a n d i n g t han the life of the S p e c i a l R a c k e t Squads.
On
some of them, the R e v e n u e Service i n v e s t i g a t o r s h a v e w o r k e d
p ainstakingly for years, s e e k i n g the full facts a nd d e t e r m i n i n g
whether there is s u f f i c i e n t e v i dence to w a r r a n t p r o s e c u t i o n
recommendation.
The S p e c i a l T ax F r a u d D r i v e has b r o u g h t a b o u t a n
intensification of the c a m p a i g n a g a i n s t u n d e r w o r l d tax dodgers,
but it did not originate such a campaign; we h a v e b e e n c o n d u c t i n g
one all along, and it has b e e n fruitful.
Thus f r o m A p r i l to the
end of July, w h ile the Sp e c i a l R a c k e t Squads were r e c o m m e n d i n g
24 cases for p r o s e cution, the D e p a r t m e n t of Ju s t i c e was f o r w a r d i n g
92 cases, d e v e l o p e d e a r l i e r b y the R e v e n u e Service, to the
several U. S. A t t o r n e y s for p r o s e c u t i o n action.
A n d d u r i n g that
same period, i n d i c t m e n t s h a v e b e e n r e t u r n e d in
cases, and
convictions h ave a l r e a d y b e e n obtained.

89

10

In p r a c t i c a l l y a ll r a c k e t e e r tax cases, the B u r e a u m a k e s use
of jeopardy a s s e s s m e n t s . As y ou know, such a n a s s e s s m e n t b e c omes
effective i m m e d i a t e l y as a lie n ag a i n s t r eal e s t a t e or as a b a sis
of a u t h o r i t y to seize b a n k de p o s i t s or other p r o p e r t y to s a t i s f y
the assessment.
This is in contrast to the l e i s u r e l y pr o c e s s of
awaiting a final deter m i n a t i o n , p e r h a p s l o n g delayed, of the tax
liability b e fore t a k i n g a c t i o n for collection.
F r o m the b e g i n n i n g
of the Sp e c i a l Ta x F r a u d Drive in A p r i l t h r ough J u l y 31* j e o pardy
assessments w ere m a d e in
^ cases, w i t h the co m b i n e d taxes and
penalties t o t a l i n g $ 7 ,220,623.73.

3

It is not a v e r y far cry, of course, f rom income tax frauds
to liquor tax frauds.
"While the S p e cial R a c k e t Squads h a v e b e e n
running d o w n evaders of the income tax, the A l c o h o l T a x U n i t also
has bee n busy.
F r o m late A p r i l th r o u g h J uly 31 the A l c o h o l T a x
Unit seized 3,430 stills and a r r e s t e d 3*171 persons.
In the same
period 2,337 p e rsons were in d i c t e d and 2 , l8l conv i c t i o n s were
obtai n e d .

389

-5 I want to make s p e c i a l mention o f the f a c t th a t many o f the
leads follow ed by the S p e c ia l Racket Squads are su p p lie d by the
public. The Revenue S e rv ic e welcomes in fo rm atio n from any p erso n
which might a id the p re se n t e f f o r t a g a in s t the ta x dodging by
reacketeer elem en ts, and anyone h avin g in fo rm atio n i s urged to
make i t a v a ila b le to the D ir e c to r , S p e c ia l Tax Fraud D riv e,
Bureau o f I n te r n a l Revenue, W ashington.
The id e n t it y o f
in d iv id u als su p p ly in g such in fo rm atio n i s alw ays f u l l y sa fe g u a rd e d ,
I do not want you to b e lie v e — nor the American p u b lic
generally to th in k — th a t the a c t i v i t i e s o f the r a c k e t squads
affe ct d i r e c t l y any c o n sid e ra b le p erce n t o f American ta x p a y e rs.
Most people pay t h e ir ta x e s h o n e stly and f a i r l y . As in no oth er
country on e a r th , the U nited S t a t e s depends f o r the m ajor support
of i t s F e d e ra l Government on a v o lu n tary system o f t a x a t io n . Her
citiz e n s fig u r e out t h e ir own a sse ssm e n ts, and to a r e a l l y
amazing d e g re e , they pay what they owe w ithout any com pulsion.
N a tu r a lly , in the cou rse o f t h i s v o lu n tary payment p r o c e ss,
people want to know th a t the system i s fr e e from l a x i t y , from
fav o ritism , from fr a u d . So lon g a s they c o n sid e r the system
deserving o f t h e ir c o n fid en ce , a l l w i ll be w e ll. I f the time ever
came when they l o s t confiden ce in i t , d i s a s t e r could fo llo w .
The Revenue S e rv ic e has enjoyed p u b lic con fiden ce in the
past, and e n jo y s i t now. We may look to the re c o rd s o f the
Service i t s e l f f o r evidence to su p p o rt t h i s statem en t.
An overwhelming m a jo r ity o f the income ta x re tu r n s re c e iv e d
by the Revenue S e rv ic e each y ear a re fr e e from any su sp ic io n o f
dishonesty or from any d e lib e r a t e c h e a tin g . That I s a tremendous
tribu te to American s p i r i t and American c h a r a c te r . I t i s t h is
record which en a b le s the Revenue S e rv ic e to c o l l e c t each $100 o f
Federal Revenue a t an o v e r - a ll c o st o f only a l i t t l e over 1/2 o f
one p ercen t o f the t o t a l c o lle c t e d . J u s t th in k o f t h a t . I s n ’ t
that a sp le n d id reco rd ?
The Revenue S e rv ic e h as made an oth er n o tab le advance in the
establishm ent o f an in s p e c tio n s e r v ic e . The D ir e c to r , Edgar E .
Hoppe, p r e v io u sly a member o f the Com m issioner’ s management s t a f f ,
is re sp o n sib le d i r e c t l y to the Commissioner f o r the fu n c tio n in g
of th is o r g a n iz a tio n , which w i ll work toward the o b je c t iv e o f
insuring the m aintenance o f high sta n d a rd s o f conduct and
e ffic ie n c y among a l l Revenue S e rv ic e p e rso n n e l, in Washington
and in the f i e l d .

330
-

6

-

V alu ab le su g g e stio n s and recommendations f o r Revenue S e rv ic e
improvement have come from the C on gress. A g r e a t d e a l o f
inform ation concerning the work of the S e rv ic e has been l a i d
before C o n g ressio n al com m ittees, and h e lp fu l comments have come
from committee so u rce s a s w e ll a s in d iv id u a l members o f the House
and Sen ate.
To the e x p e c ta tio n s, o f the C on gress, .of. the p u b lic , and a l l
of the o f f i c i a l s d i r e c t l y r e sp o n sib le f o r Bureau o f I n te r n a l
Revenue a c t i v i t i e s , I am su re you and your fe llo w Revenue S e rv ic e
workers w i l l measure up f u l l y , in a manner th a t w i ll r e f l e c t
credit on the Bureau and on the Government. I a ss u r e you o f my
deep p e rso n a l i n t e r e s t in a l l o f your en d eav o rs, and my
ap p reciatio n o f the p r iv i le g e o f m eeting with you here to n ig h t.

MM

0O0

A

follow*

rmm

of the

i>erT BBT meetinga
ing statement today ax
Sraer

Exchequer / Hugh G aitsk ells
*

Chancellor Gaitskell, who is in Washington for the Annual

Meetings of the Boards of Governors of the International
Monetary Fund and the International Bank, took advantage of the
o c c a & n to call on Secretary of the T r e a s u r y S n y d e r «
Mr« Gaitskell brought the Secretary up to date on the British
financial situation«
A
These conversations provided an opportunity for the two
__ _____

ew generally the financial developments in the

world since their last meeting in September 1950©

They discussed

the financial problems arising out of the defense efforts of the
free world, and exchanged views informally on the general problem
of rising prices resulting from defense preparations«

They also

reviewed, in a general way, the financial outlook of the two

.

countries in the immediate period ahead«

j - f

?

it

392
TREASURY DEPARTMENT
Washington

! IMMEDIATE RELEASE..
Friday, September 7>1951

1 **'*’"*”'

S-2807,

The Treasury assuecT thes following- statement today after
Secretary Snyder’s meetings with Chancellor of the ExcHequer“**
Hugh Gaitskell:
"Chancellor Gaitskell, who is in Washington for the
Annual Meetings of the Boards of Governors of the International
Monetary Fund and the International Bank, took advantage of
the occasion to call on Secretary of the Treasury Snyder.
Mr. Gaitskell brought the Secretary up to date on the British
financial situation.
"These conversations provided an opportunity for the two
cabinet officers to review generally the financial developments
in the world since their last meeting in September 195>0. „.They
discussed the financial problems arising out of thè defense
efforts of the free world, and exchanged views informally on
the general problem of rising prices resulting from defense
preparations. They also reviewed, in a general way, the
financial outlook of the two countries in the immediate period
ahead."

oOo

393
TREASURY DEPARTMENT
Washington
FOB RELEASE
Thursday, September 20, 1951

Press Service
No« S-2808

Secretary of the Treasury Snyder today made public a series of
tabulations which w ill appear in the report "S ta tistic s of Income for
1948, Part 2,!* compiled from corporation income tax returns and personal
holding company returns. These data are prepared under the direction of
Commissioner of Internal Revenue John B. Dunlap.
SUMMARY DATA
The number of corporation income tax returns for 1948 i s 650,670,
of which 595,860 show net income of $56,275,250,000, while 198,585 show
deficit of $1,848,226,000, and 56,427 have no income data (inactive
corporations)•
The income tax liability-reported on these returns is $11,920,260,000,
representing an increase of 9 percent as compared with the to tal for 1947.
The amount of income tax does not take into account any credit claimed
for income and p ro fits taxes paid to a foreign country or United States
possession*
A comparison of the 1948 returns with the 1947 returns i s provided
in the following summary:
Corporation income tax returns, 1/ 1948
and 1947: Summary data ”
(Money figures in thousands of dollars)

Increase
decrease
Number or
amount

or
(-)
Per­
cent

42,987

7

13,329
382,531
595,860
56,273,250 33,381,291 2,891,959
11,920,260 10,981,482 938,778

3
9
9

29,107
169,276
198,385
1,848,226 1,958,563 -110,337

17
-6

551

2

1948
Total number of returns
Returns with net income: 2/
Number
Net income 2/
Income tax
Returns with no net income: 2/
Number
Deficit .2/
Number of returns of inactive
corporations
For footnotes, see pp. 25-26.

650,670

56,427

1947
587,683

35,876

~

2~

RETURNS INCLUDED
The returns included in this release are the corporation income tax
returns filed for the calendar year ending December 31», 1 9 4 8 a fiscal
year ending within the period July 1948 through June 1949, and a part
year with the greater portion of the accounting period in 1948The data are from corporation income tax returns,, Form 1120; life
insurance company income tax returns. Form 1120Lj and mutual insurance
company income tax returns * Form 112ÒM» Included for this purpose in,
addition to returns filed by domestic corporations are the .returns filed
by foreign corporations engaged in business within the United States.
The complete report* Statistics of Income for 1948, Part 2 m i l contain
more detailed statistics from corporation income tax returns as well as
data from personal holding company returns^ Form 1120H,
The statistics are compiled from the returns as filed,, prior to
revisions that may be made as a result of audit by the Bureau of Internal
Revenue and prior to changes resulting from carry-backs after the returns
were filed- Data from amended returns and tentative returns are not
included in the tabulations »
COMPARABILITY OF DATA
The provisions
Revenue Act of 1945
fiscal years ending
ingly, the data for

of the Internal Revenue Code as amended by the
continue in effect for the calendar year 1948 and
in the period July 1948 through June 1949» Accord­
1948 are generally comparable with those for 1947,
CLASSIFICATIONS PRESENTED

The first three tables of this release show data from corporation
income tax returns, classified by industrial groups* The industrial
classification is based on the business activity reported on the returnMien multiple businesses are reported on a return- the classification is
determined by the business activity which accounts for the largest per­
centage of total receipts. Therefore,, the industrial groups do not
reflect pure industry classifications,
Ì
For 1948- changes have been made in the contents of certain industry
groups to conform* generally* with recent changes in the Standard
Industrial Classification« A chart* showing the comparison of the major
industrial groups employed for 1948 with those for 1947, appeared in the
preliminary report issued July 18 1951. A similar chart* showing the
comparison of the minor industrial groups* will appear in the complete
report l*Statistics of Income for 1948* Part 2«1*
Table 4 shows data from returns with balance sheets* classified
according to size of total assets as of December 31. 1948-, or close of
fiscal year nearest thereto, The total assets classes are based on the
net amount of total assets after reserves for depreciation-, depletion*
amortization* and bad debts*

- 3 -

394

The classificatio n of the returns by net income and d e fic it classes,
shown in table 5, and the classificatio n by returns -with net income and
returns with no net income, shown in tables 1, 3, and 5, are based on the
amount of net income or d e fic it which is the difference between the to tal
income and the to ta l deductions as reported on the return, exclusive of
the net operating loss deduction*
CREDIT ALLOWED LIFE INSURANCE COMPANIES
In analyzing the data compiled from returns classifie d under the
major group "Insurance carriers, agents, e tc ," i t should be noted that
life insurance companies, in reporting their income for tax purposes,
are required to include only their investment income, i * e * , in terest,
dividends, and rents. Beginning 1942, life insurance companies are al­
lowed a "reserve and other policy lia b ilit y credit" equal to a f la t
proportion of net investment income less tax-exempt in terest. This
credit, which i s deducted after arriving at net income and i s reported
only on returns with net income, takes the place of the deductions for
reserve earnings, deferred dividends, and interest paid, which formerly
were allowed in computing net income.
For 1948 the credit ratio is 1.0243 and for normal tax purposes
the aggregate amount of reserve and other policy lia b ility credit is
11,464,450,025, of which $1,463,167,788 is reported on returns with
balance sheets* As an o ffset to th is credit, adjustment for certain
nonlife insurance reserves i s reported in to ta l amount of $10,578,781,
of which $10,550,721 i s reported on returns with balance sheets. The
latter adjustment, which i s made in order to include in the tax base
the interest received on nonlife insurance reserves, applies only to
life insurance companies deriving a portion of their income from con­
tracts other than li f e insurance, annuities, or noncanceliable health
and accident insurance.
DATA PREVIOUSIX RELEASED

A tabulation, prepared from consolidated income tax returns file d
for 1948 by a ffilia te d corporations, was included with other tabulations
in a preliminary release dated J u n e 19, 1 9 5 1 , (Press Service No*
S-2721) and i s omitted from this release. Table 1-A of the preliminary
release shows by major industrial groups the number of consolidated
income tax returns file d by a ffilia te d corporations, with the correspond­
ing amount of to ta l compiled receipts, net income, income tax, and
dividends paid. Although the above-mentioned -table i s not shown here,
the data from consolidated returns are included in a l l tables of this
release.
A chart, showing the comparison of the major industrial groups
employed for 1948 with those for 1947, appeared in the Preliminary
Report, S ta tistic s of Income for 1948, Part 2, dated July 18, 1951.

- 4 Table 1* - Corporation income tax returns, 1/ 1948, by major industrial groups and minor industrial groups, for returns with net income
and returns with no net income! Number of returns, total compiled receipts, net income or deficit, and dividends paid in cash and
assets other than own stock) also, for returns with net income, the income tax

Returns with net income 2/
Total
Number Total
number
of
compiled
of reNet
Income
turns 5/ returns receipts 6/ income 2/
tax 3/

Major industrial groups and
minor industrial groups 4/

,

________

_

..

.

....

1 All industrial groups
2 Agriculture, forestry, and fishery
Farms and agricultural services
5
4
Forestry
5
Fishery
,
6 Mining and quarrying
7
Metal mining
8
Iron
9
Copper, lead, zinc, gold, silver
10
Other metal mining
11
Anthracite mining
12
Bituminous coal and lignite mining
13
Crude petroleum and natural gas production
14
Crude petroleum, natural gas, and natural gasoline
15
Oil« and gas-field contract services
16
Nonmetallic mining and quarrying
17
Stone, sand, and gravel
18
Other nonmetallic mining and quarrying
19 Construction
20
General building contractors
21
General contractors other than building
22
General contractors not allocable
23
Special trade contractors
24
Other construction
25 Manufacturing
26
Beverages
27
Nonalcoholic beverages
28
Malt liquors and malt
29
Vines
SO
Distilled, rectified, and blended liquors
Food and kindred products
31
32
Meat products
53
Dairy products
34
Canning fruits, vegetables, and sea foods
55
(brain mill products, except cereal preparations
36
Bakery products
37
Sugar
38
Confectionery
39
Cereal preparations
40
Other food, including manufactured ice and flavoring sirups
41
Food and kindred products not allocable
42
Tobacco manufactures
43
Cigars
44
Other tobacco manufactures
45
Textile-mill products
46
Tarn and thread (cotton, wool, silk, and synthetic
fiber)
47
Broad-woven fabrics (woolen and worsted)
48
Broad-woven fabrics (cotton)
49
Narrow fabrics and other smallwares (cotton, wool,
silk, and synthetic fiber)
50
Knit goods
51
Dyeing and finishing textiles, except knit goods
52
Carpets and other floor coverings
53
Hats, except cloth and millinery
54
Other textile-mill products
Textile-nd.ll products not allocable
55
56
Apparel and products made from fabrics
57
Men's clothing
58
Women's clothing
Millinery
59
Fur goods
60
61
Other apparel and accessories
62
Other fabricated textile products
Apparel and products made from fabrics not
63
allocable
64
Lumber and wood products, except furniture
65
Logging camps, logging contractors, sawmills, and
planing mills
66
Millwork, plywood, and prefabricated structural
wood products
67
Wooden containers
Other wood products
68
Furniture7and fixtures
69
70
Furniture - household, office, public building,
and professional
71
Partitions, shelving, lockers; and office and store
fixtures
72
Window and door screens, shades, and Venetian
blinds
73
Other furniture and fixtures
74
Paper and allied products
75
Pulp, paper, and paperboard
76
Paper bags.and paperboard containers and boxes
77
Pulp goods and other converted paper products
78
Printing, publishing, and allied industries
79
Newspapers
80
Periodicals
81
Books
82
Coaaercial printing, including lithographing
83
Other printing and publishing
84
Printing, publishing, and allied industries not
allocable
For footnotes, see ppa 25-26,

630,670 395,860 379,509,471 36,273,250 U , 920,260
8,122
4,553
245,694
1,642,670
79,060
7,408
4,213
1,582,246
233,092
75,559
272
157
50,280
2,488
9,269
442
183
50,144
5,333
1,013
10,962
5,505
7,337,631 1,221,825
413,678
1,774
230
1,190,474
282,277
88,281
US
268,107
27,547
40
8,335
1,300
149
840,334
243,862
76,428
361
41
82,035
10,868
5,518
117
42,107
210
525,375
12,631
2,297
1,434
2,542,354
318,597
113,058
157,417
4,291
460,206
2,563
2,362,051
5,272
1,951
1,839,336
392,685
135,406
612
1,019
522,695
67,521
24,011
717,397
2,390
1,159
118,638
42,311
1,458
506,946
993
75,976
25,680
166
932
210,451
44,662
16,651
24,826 16,155
8,518,903
625,246
210, U l
5,962
3,588
142,942
2,467,690
49,513
3,056
2,178
2,125,815
205,164
69,567
1,187
1,878
61,657
893,052
20,740
12,713
8,904
206,188
2,895,051
67,050
1,217
498
137,335
11,295
5,441
120,367 73,638 185,981,909 18,928,473 6,821,585
3,605
189,181
1,751
4,820,625
510,994
2,678
1,306
664,819
80,848
28, o n
480
269
2,271,953
259,589
97,266
181
69
64,241
5,298
1,927
266
107
61,977
1,819,632
165,259
U,528
6,951 26,177,784 1,222,361
443,412
1,318
899
8,599,289
184,606
66,608
1,727
1,104
3,588,885
49,097
133,270
1,852
936
2,141,866
158,531
57,913
1,504
786
3,747,215
103,166
37,469
1,874
1,176
2,407,174
172,635
63,703
130
75
1,078,813
75, U O
26,173
816
411
1,214,556
U3,135
41,538
47
535,874
15,171
21
34,736
2,096
1,307
2,084,163
185,855
64,869

Returns with no net incoi
Dividends
paid in
Number Total
cash and
of
compiled
Déficit 2/
assets
returns receipts 6/
other than
other thar
own stock
9,278,836 198,585
61,941
3,141
59,178
2,808
2,251
102
512
231
457,796
3,582
155,839
670
43
14,778
494
133,935
7,128
153
18,666
86
75,796
729
171,529
1,424
164,593
1,U9
6,956
305
35,966
675
10,657
389
25,329
284
66,518
7,325
15,605
2,019
24,970
774
5,653
569
19,346
3,546
944
417
4,605,273 43,108
106,556
1,627
23,287
1,273
46,898
162
499
101
35,872
91
347,482
4,264
41,370
384
56,545
562
56,703
825
26,455
476
45,140
660
25,976
52
55,608
384
12,504
15
70,376
752

31,656,177
219,272
198,577
4,015
16,680
569,364
84,697
45,719
31,558
7,420
63,466
171,980
204,496
132,436
72,060
44,725
31,044
13,681
870,132
258,962
195,276
87,745
305,425
22,724
14,029,497
516,677
167,013
205,505
52,469
91,690
5,408,370
3,733,057
254,030
346,097
448,765
187,435
U O , 934
145,682
1,730
128,986

1,848,226
26,148
23,819
657
1,672
68,842
10,823
201
8,039
2,583
2,532
8,971
40,718
52,721
7,997
5,998
5,659
2,339
48,226
13,631
9,756
5,034
18,045
1,780
814,485
45,043
17,159
15,569
4,669
5,646
114,555
25,775
5,294
51,809
10,208
10,249
7,458
12,336
54
8,342

107,639
1,209
1,160

54
65
63

6,274
685
50
557
76
1,089
4,526
5¿848
477
174
126
48
963
88
608
62
206
35,499
1,790
372
985
456
10,542
7,075
122
412
985
117
666
706
•

457

384
230
148
82
6,205
621

218
123
68
55
4,161
477

979,949
5,007,437
263,044
2,744,593
11,828,790
1,486,455

61,319
243,782
18,515
225,267
1,554,012
200,147

22,871
91,426
6,782
84,644
576,468
74,802

19,005
89,049
4,919
84,130
292,227
35,596

154
102
77
25
1,917
135

51,656
33,023
26,207
6,816
615,101
44,989

2,830
2,048
1,465
585
46,517
4,160

572
459
388

224
553
276

1,205,005
3,071,271
255,519

151,275
523,605
22,787

48,521
195,488
7,806

26,344
100,152
4,848

143
74
109

108,502
47,512
27,691

9,975
3,521
1,512

171

2,057
682
179
276
910
281
14,851
2,832
7,128
470
972
730
2,044
675

1,378
424
100
151
644
154
8,595
1,766
4,210
248
593
415
1,187
576

1,542,003
634,441
845,770
146,852
1,595,924
1,049,552
7,096,988
2,416,214
5,204,761
74,971
100,487
271,959
757,314
271,282

141,889
66,844
105,784
5,751
213,381
142,549
549,645
157,208
145,023
2,116
1,715
14,139
36,685
12,761

51,551
24,286
39,663
2,025
79,123
53,203
121,764
48,996
50,043
596
409
4,832
12,548
4,540

24,826
11,813
23,256
1,615
51)944
31,835
58,744
22,689
16,824
396
194
3,017
12,670
2,954

659
246
72
140
250
109
6,077
1,023
2,837
219
571
311
832
284

155,440
65,559
12,481
42,685
89,178
21,266
1,509,971
350,981
579,252
25,891
81,185
60,660
159,866
52,136

9,699
5,555
690
2,277
6,401
2,529
71,740
18,253
31,278
1,178
4,784
5,580
9,296
5,371

581
76
U
7
554
47
1,425
681
284
22
15
58
581
102

6,022
3,147

3,879
2,076

4,160,653
2,537,542

567,813
398,197

196,147
135,427

98,817
73,141

1,986
978

406,489
208,690

29,265
14,532

755
579

1*175

828

945,054

120,767

43,896

17,100

323

81,884

8,066

277

536
1,164
4,400
3,132

341
654
2,724
1,930

348,114
330,145
2,147,137
1,777,912

21,573
27,276
195,005
164,935

7,466
9,358
70,244
59,816

3,709
4,867
34,252
30,184

189
496
1,603
1,154

51,520
64,395
304,450
237,747

2,288
4,379
22,275
15,796

59
38
414
205

612

426

175,735

15,519

5,514

1,850

178

26,883

2,786

198

509

296

143,957

10,864

5,794

1,696

200

34,088

3,555

10

147
2,603
474
1,254
875
12,849
2,816
1,501
674
4,408
2,312
1,338

72
1,898
372
889
637
8,978
2,073
702
383
5,295
1,608
917

51,553
5,737,079
3,416,056
1,326,504
994,519
5,795,347
2,019,062
855,526
455,431
1,565,043
510,266
410,019

3,687
798,787
570,690
142,404
85,693
616,198
262,705
78,127
44,424
143,699
52,464
54,781

1,520
295,838
212,118
52,208
51,512
215,974
93,752
27,564
15,321
49,750
17,646
U , 341

522
170,226
120,997
50,209
19,020
154,815
75,259
25,571
10,488
27,125
11,666
4,706

71
658
90
545
223
3,519
696
549
261
1,032
651
350

5,752
268,652
95,373
87,195
86,084
484,588
143,682
109,190
45,830
107,044
49,504
29,338

358
14,789
4,658
5,751
4,380
58,585
12,595
10,245
4,448
6,520
8,269
1,530

5
617
516
243
61
1,272
246
102
167
162
166
489

-

1,338

44
234

IS

395
Table 1. - Corporation income tax returns, j/ 1948, hy major industrial groups and minor industrial groups, for returns with net income
and returns with no net income» Number of returns, total cospiled receipts, net income or deficit, and dividends paid in cash and
assets other than own stock; also, for returns with net income, the income tax - Continued
turns with no net income
Major industrial groups and minor
industrial groups 4/ - Continued

Total
number
tomber Total
of re­
Net
compiled
of
turns jj/ returns receipts 6/ Income 2/

Income
tax 5/

M
Jl

9
9
0
6
5
4
¡5
0
7
6
S
19
5
8
7
4
6
8
4
18
18
2
16
9
9
10

2

»
•
S
2
5
2

2

»
7
>6
16
•
7

1
21
S
41
SI
6]
71
8
9j
10
u|
12
13 ]
14 ]
15
161
171
IS
19]
20
21
22
251 H
24
25
26
27
28
29
5°
51
52
55
54
55
56
57
56
59

40

¡4 41
3 42
S 46
44
8 45
46

4

14 47
.5 48
1 49

a 50 1
6 51 ■
B
l
7 53
>4 54
7 55
S 56
a 37
14 38
2 69
5 60
8 61
a 62
65

Manufacturing - Continued

1 85
1 8
6
1 87
I 8
8
1 89
I
I
I

90
91
92

1 95

I 94
I 95
1 96
I 97
1 98
I 99
I 100
■ 101
■
■
■
■
■
■
■
1
■
■

102
103
104
105
106
107
108
109

no

Ul
112
113

I
■

114
115

■

117

1
■
1
■

118
119
120
121

1
1
1

122
123
124

I
1
■
I

125
126
127
128
129
130
131

■ 116

j
8! E

1

ft 132
1

133

I
■

136
137

1
154
■ 135

609,526
50,348
195,035

537,538
21,088
170,636

5,088
62
186

558,489
15,858
105,051

46,566
1,244
7,655

1,686
5
5X5

1,578,988
1,560,884

246,595
60,225

89,120
22,388

73,949
40,801

703
416

49,120
50,826

5,066
4,815

257
264

1,755,518
229,942
496,205
1,665,304

134,354
25,288
46,S55
100,923

48,921
8,721
16,768
57,494

31,003
3,138
13,743
17,619

SIS
411
68
150

54,517
54,197
7,949
147,191

5,055
4,592
607
8,198

43
132
19
506

156,869
1,315,659
514,119
2,007,188
19,758,277 2,000,180
18,802,752 1,904,177
96,003
955,525
262,515
3,507,856
204,154
2,680,351
58,161
627,505

57,381
103,352
660,044
625,062
34,982
92,297
70,822
21,475

40,333
125,228
702,739
683,916
18,823
65,718
55,537
12,181

582
597
181
75
106
220
18
202

56,423
39,577
228,900
184,830
44,070
81,937
35,274
46,663

4,270
5,068
17,142
15,215
1,929
7,545
4,042
5, 303

92
55
370
274
96
105
19
86

158,434
47,409
90,956
20,069
549,486
96,197
106,158
75,243
55,539
103,695
7,727
124,927

57,448
17,551
33,507
6,590
202,687
55,720
39,999
27,553
13,119
57,959
2,457
45,880

41,287
11,122
25,496
4,669
124,856
29,466
25,469
14,684
5,382
18,902
1,578
29,555

1,271
148
463
660
1,542
241
16
195
123
510
74
183

426,264
63,180
253,498
109,586
157,056
67,417
591
16,524
20,676
27,727
4,540
19,981

26,597
4,918
13,965
7,514
18,977
7,552
175
1,982
2,164
4,492
278
£,534

931
145
729
57
333
168
SO
62
21
2
50

2,169
153
779
298

16,746,046 1,746,435
10,126,687 1,025,978
165,434
1,520,795
570,441
5,544,979

644,825
385,698
60,189
130,193

364,967
188,014
54,386
105,611

884
26
236
75

264,080
44,317
60,367
56,500

17,191
3,691
3,748
2,009

1,678
1,154
57
341

759
618
172
9,564

414
465
80
6,320

382,506
57,360
145,248
1,085,688
5,974
85,593
9,009,132 1,070,028

13,553
53,045
2,147
390,510

6,540
29,426
990
216,237

329
142
76
5,020

46,483
46,097
10,516
460,252

5,001
1,915
827
46,413

95
48
5
1,396

95
1,144
1,160

70
704
709

74,612
119,549
246,979

26,224
42,561
90,751

19,918
33,102
56,748

23
403
410

4,154
57,585
121,154

226
6,161
9,875

2,302
1,989
650
510
1,333
401
9,940

1,844
1,201
546
375
811
260
6,562

260,663
1,965,123
131,872
1,151,099
15,923
240,126
64,012
592,609
105,415
823,736
439,871
51,005
14,472,780 1,800,259

95,878
48,414
5,644
25,606
38,837
18,795
668,698

29,586
23,810
2,862
14,216
24,112
11,883
582,133

428
743
267
127
491
128
5,296

64,699
84,809
58,492
15,662
57,856
15,881
591,588

10,285
7,107
5,918
1,492
5,859
1,492
58,795

150
92
18
11
256
18
1,854

4,325
158
262

Drugs and medicines
Soap and glycerin, cleaning and polishing
preparations, etc.

1,523
'862

720
429

Painty varnishes, lacquers, etc.

1,075
719
322
529

732
271
243
356

1,114
928
668
525
343
670
56
614

699
475
453
251
222
451
35
396

3,047
437
1,121
1,489
4,310
607
95
787
535
1,515
583
588

1,734
285
638
811
2,851
555
77
569
210
954
303
583

5,158
169
1,035
387

Perfumes, cosmetics, and other toilet preparations
Fertilisers
Oils and fats, animal and vegetable, except edible
cooking oils
Other chemical products
Chemicals and allied products not allocable
Petroleum and coal products
Petroleum refining
Other petroleum and coal products
Rubber products
Tires and inner tubes
Other rubber products, including rubberised fabrics
and clothing
Leather and products
Leather, tanned, curried, and finished
Footwear, except rubber
Other leather products
Stone, clay, and glass -products
Glass and glass products
Cement (hydraulic)
Structural clay products
Pottery and related products
Concrete, gypsum, and plaster products
Cut-stone and stone products
Abrasives, asbestos, and other nonmetallic
mineral products
Primary metal industries
Blast furnaces, steel works, and rolling mills
Iron and steel foundries
Smelting, refining, rolling, drawing, and
alloying of nonferrous metals
Nonferrous foundries
Other primary metal industries
Primary metal industries not allocable
Fabricated metal products, except ordnance, machines y,
and transportation equipment
Tin cans and other tinware
Cutlery, hand tools, and general hardware
Heating apparatus (except electrical) and
plumbers' supplies
Fabricated structural metal products
Metal stamping, coating, and engraving
Lighting fixtures
Fabricated wire products
Other fabricated metal products
Fabricated metal products not allocable
Machinery, except transportation equipment and
electrical
Engines and turbines, except automotive, aircraft,
and railway
Agricultural machinery and tractors
Construction and mining machinery
Metal-working machinery, including machine tools
Special industry machinery
General industry machinery
Office and store machines
Service-industry
and household machines
Other machinery parts, and machine shops
Machinery, except transportation equipment and
electrical, not allocable
Electrical machinery and equipment
Electrical generating, transmission, distribution,
and industrial apparatus
Electrical appliances
Insulated wire and cable
Electrical equipment for motor vehicles, aircraft,
and railway locomotives and cars
Electric lamps
-.
Radio, radar, and television equipment
(except radio tubes), and phonographs
Other communication equipment and related product
Other electrical products, including batteries
Electrical machinery and equipment not allocable
Transportation equipment, except motor vehicles
Aircraft and parts, including aircraft engines
Ship and boat building and repairing
Railroad equipment, including locomotives and
street cars
Motorcycles, bicycles, and parts
Other transportation equipment, except motor
vehicles

ft 138
1 139
8
1 140
S 64 ]
41
Î9 65 ! 1 1
1 142
7 66
1 143
I 144
9 67
I 145
18 66
ft 146
4 69
5 70
1 147
1 148
8 71
1 149
0 72
I 150
I 151
S 75
152
7 74
Li 7756 1 153
154
5
ft 155
1 77
2 78
16 79 ! I 156
8 8180 ! I 157
7
8 8823
S6
For footnotes,
» 84 i

see pp. 25 -2 6 .

5ZI__

Dividends
laid in
Total
compiled
Deficit 2/ cash and
assets
receipts §/
other than
own stock

13,696,104 1,728,534
85,284
547,992
558,324
2;740,424

7,742
'206
464

Chemicals and allied products
Industrial inorganic chemicals
Industrial organic chemicals, including plastic
materials, synthetic rubber, and synthetic fibers

Dividends
Number
said in
of
cash and
returns
assets
other than
own stock

2,734,855
742,129
1,590,061
402,665
3,982,755
943,456
448,294
504,451
304,270
686,744
90,750
1,004,788

858,039
944,435
1,996,094

24
345
504.

95

55

474,596

48,269

17,930

6,751

35

14,927

1,569

402

594
501
2,143
1,471
1,259
538
705
2,179
675

568
405
1,551
1,069
869
178
412
1,253
402

2,666,155
1,507,245
1,425,715
l,è79,776
1,819,960
1,029,249
1,848,587
945,798
1,077,703

290,869
218,251
170,188
222,689
225,291
169,285
214,798
120,475
120,144

108,049
81,319
62,196
81,848
83,819
63,524
81,419
44,052
44,542

59,523
32,709
46,830
49,167
45,982
39,203
55,105
27,932
18,931

205
81
753
363
334
133
266
882
244

51,313
25,191
118,455
54,482
62,059
56,689
72,372
84,041
72,059

5,354
1,798
10,834
4,693
6,995
3,929
9,097
7,735
6,791

22
170
394
81
155
29
109
59
435

5,126
916

1,645
579

8,562,169
2,912,018

925,956
594,264

559,091
145,058

205,684
81,580

1,364
519

450,781
95,610

47,804
8,371

1,946
341

317
81
107

141
57
48

339,559
451,359
851,754

40,896
37,816
28,511

14,850
14,283
10,758

9,918
8,553
10,072

156
22
56

54,052
21,893
9,862

6,169
1,621
767

42
4

5,632
134,135

543
16,360

703

8

75
609

36
287

91,585
1,186,573

7,289
100,330

2,628
36,746

2,024
20,732

37
299

260
349
412
1,117
232
684
U5

127
178
192
563
104
546
73

1,487,659
450,077
1,191,785
3,345,171
1,291,627
713,189
1,245,313

147,275
55,334
152,221
270,965
108,061
58, 503
96,554

54,436
12,811
47,541
96,628
37,892
20,736
35,075

41,305
7,671
23,829
96,543
46,105
11,170
37,262

127
152
196
495
105
314
33

40,388
24,495
84,714
441,310
258,118
85,785
80,807

3,118
2,425
8,440
38,552
22,390
9,729
3,821

124
15
709
1,150
558
163
358

56
50

20
20

85,907
11,135

. 6,863
964

2,581
344

1,764
242

16
25

13,329
3,271

2,279
513

71

Table 1. » Corporation income tax returns, 1948, by major Industrial group« and minor Industrial groups, for returns with net income
and returns with no net incomes Number of returns, total compiled receipts, net Incoae or deficit, and dividends paid In cash and
assets other than own stock; also, for returns with net Incoae, the Incoae tax - Continued

net lnoo— ii
Major Industrial groups and alnor
Industrial groups 4/ — Continued

158
159

Manufacturing - Continued
Kotor vehicles and equipment, except eleotrieal
Kotor vehicles, including bodies and truck
trailers
Kotor vehicle parts and accessories, and passenger
trailers
Ordnance and accessories
Guns, howitaers, mortars, and related equipment.
including small arms
Small arms ammunition
Other ordnance and accessories
Scientific instruments; photographic equipment;
watches, clocks
Professional, scientific, and controlling
instruments, including photographic and optical
goods
Watches, clocks, and clockwork-operated devices
Other manufacturing
Jewelry (precious metal), silverware, plated ware
Costume jewelry, except precious metal
Fabricated plastic products, except plastic
materials
Other manufacturing
Public utilities
Transportation
Railroads, railway express
Urban, suburban, and lnteruzban railways (with
or without buses)
Trucking and warehousing
Other motor vehicle transportation, Including
taxicabs and buses
Pipe line transportation
Water transportation
Air transportation and allied services
Services incidental to transportation
Other transportation
Communication
Telephone (wire or radio)
Telegraph (wire and radio)
Radio broadcasting and television
Other communication
Electric and gas utilities
Electric light and power
Gas production and distribution, except natural
gas production
Other public utilities
Water supply
Other public utilities
Trade
Wholesale
Comission merchants
Other wholesalers
Food
Alcoholic beverages
Apparel and dry goods
Chemicals, paints, mid drugs
Hardware, electrical goods, plumbing and beating
equipment
lumber, mill-work, and construction materials
Machinery and equipment
Farm products (raw materials)
Other wholesalers
Wholesalers not allocable
Retail
Food
General merchandise
Department stores
Mail-order houses
Variety stores
Other general merchandise
Apparel and accessories
Ihrniture and house furnishings
Automotive dealers and filling stations
Automobiles and trucks
Farts, accessories, tires, batteries
Filling stations
Drug stores
Eating and drinking places
Building materials and hardware
Lumber and building materials
Hardware and farm equipment
Other retail trade
Liquor stores
Other retail trade
Retail trade not allocable
Trade not allocable
Finance, insurance, real estate, and lessors of real
property
Finance
Banks and trust companies
Credit agencies other than banks
Personal credit agencies
Business credit agencies
Other credit agencies
Credit agencies and finance not allocable
Holding and other investment companies
Operating-holding
companies
Other investment and holding companies
For footnotes

see pp. 25-26,

Total
number
of re*
turns

Number Total
compiled
Net
of
returns receipts §/ income tj

Income
tax 5/

Dividends
Number
paid in
of
cash and
returns
assets
other than
own stock

Üirtdenda'

Total
paid in
compiled
Deficit 2/ cash and
receipts §/
assets

other thii

628,472
531,811

561,479
505,290

486
148

258,566

96,661

56,189

558

77,596

7,148

55,100
7,181

12,427
~27690

7,476
1,450

27
14

17,950
8,508

1,927
511

t’
h.

159,795
11,515
1,828,678

24,372
1,567
227,655

9,171
566
80,499

5,990
56
69,259.

6
7
675

66
9,576
118,555

9
1,407
14,942

174

950

1,574,958

194,581

68,075

59,404

625

76,416

10,856

81

121
11,574
994
512
1,200

69
5,855
527
154
577

255,740
4,252,701
447,580
49,922
269,517

33,074
590,286
44,690
3,369
19,492

12,424
157,979
16,366
1,120
6,556

9,855
75,209
9,560
404
1,658

48
5,010
450
175
602

41,917
670,966
74,510
15,975
67,401

4,106
65,051
5,567
1,312
6,655

95
2,485
166
1
50

9,068
26,917
19,175
725
101

4,617
15,304
10,995
425
50

5,465,682
27,482,955
17,105,238
10,725,249
224,186

522,735
3,594,232
1,846,225
1,231,267
15,555

115,957
1,204,804
649,661
442,519
4,659

63,587
1,457,658
407,609
274,908
5,309

5,785
9,921
7,060
187
42

515,082
2,193,465
1,946,229
567,165
260,550

51,719
146,212
126,596
54,827
12,895

2,288
14,918
10,281
202
1,544

9,409
5,735

6,092
1,890

2,224,945
909,559

179,402
100,680

59,261
51,459

21,174
59,400

2,928
1,711

271,551
240,292

15,057
14,686

258
961

166
1,725
1,175
1,920
217
4,586
2,827
29
1,507
25
1,558
756
622

112
968
350
1,062
66
2,265
1,444
9
801
11
969
555
434

506,424
1,746,051
480,874
458,066
50,104
3,776,284
5,204,151
212,597
558,712
1,024
6,436,644
5,052,025
1,584,621

67,690
175,097
19,330
56,468
2,758
559,006
489,005
1,099
48,745
159
1,177,202
942,787
254,415

24,655
61,725
5,-263
19,191
949
155,611
118,088
278
17,205
40
409,692
324,976
84,716

15,212
57,510
1,952
15,852
512
400,014
587,548
1,268
11,584
14
618,749
479,093
159,656

54
610
721
762
65
1,819
1,251
15
544
9
506
145
165

41,478
540,480
315,579
104f598
4,756
107,629
24,285
24,846
58,335
165
124,907
71,802
55,105

851
24,485
18,462
6,840
515
12,472
2,545
1,768
8,540
, 19
5,486
2,694
2,792

254
5,562
1,546
191
5
276
144
5
129

1,075
164,789
2,000
117,518
1,607
892
47,271
185
593
201,161 158,504 126,257,227
66,562 44,144 61,560,756
3,402,481
5,779
9,551
56,811 58,565 57,958,275
8,666
5,628 11,058,520
5,976,241
2,146
1,529
5,672
5,779,164
5,975
2,409,697
2,494
1,482
6,568,942
5,308
4,039

31,799
27,136
4,663
6,128,574
2,415,560
175,272
2,240,288
210,649
155,941
201,555
99,318
571,575

9,840
8,605
1,257
2,127,938
840,185
56,600
785,585
68,694
56,511
70,675
54,255
154,862

11,286
10,677
609
1,065,654
409,799
54,574
575,225
46,984
14,770
28,642
25,665
65,548

756
575
161
58,444
20,696
5,504
17,192
2,859
756
2,208
946
1,186

14,700
9,846
4,854
11, 268,075
6,501,204
469,702
6,031,502
2,052,516
555,611
585,762
176,756
254,608

1,658
914
744
570,215
186,272
20,057
166,215
29,804
12,047
24,654
8,465
11*556

71

2,615,894
5,078
2,410
2,687
2,519,220
5,920
5,540,180
2,955
2,125
17,975 12,568 16,029,045
5,661,572
2,627
4,298
112,772 79,067 55,565,959
8,821
5,006 11,426,685
5,291 14,954,675
6,990
2,558
2,211 11,607,660
596,487
228
514
582
2,095,953
561
3,577
2,470
854,575
5,007,662
15,070 10,847
6,647
2,087,874
9,262
21,857 18,136 12,017,520
17,678 15,519 10,996,258
500,872
1,284
2,075
2,084
1,555
520,410
1,546,635
5,006
3,521
1,406,114
6,565
14,504
2,691,787
9,672
8,120
4,987
2,058,059
5,946
655,728
3,726
3,133
4,644,991
21,810 14,936
1,607
2,487
234,975
2,656,573
13,549
8,991
4,538
1,755,445
5,774
22,027 15,095
9,312,552
169,052 112,038 14,548,902

45,456
150,840
58,087
163,550
57,515
107,811
688,149
258,951
58,985
115,522
5,246,640 1,152,177
97,900
271,582
419,565
1,151,960
869,586
525,440
8,124
22,156
74,877
198,665
13,122
41,573
261,267
85,276
59,105
125,553
937,847
550,272
510,982
879,765
8,646
26,730
10,644
31,352
14, 769
47,940
60,871
18,522
60,651
191,541
149,947
48,893
11,758
41,594
218,499
66,519
6,918
1,564
124,478
57,742
27,015
87,105
155,576
466,374
4,761,579
813,575

16,675
17,851
18,094
126,662
18,556
568,580
55,405
289,455
205,754
4,446
71,509
7,726
48,290
15,075
81,612
70,065
3,442
8,107
11,995
12,299
26,822
25,015
5,809
29,651
628
16,540
12,483
87,255
1,422,596

608
1,165
772
5,262
1,432
51,748
5,604
1,561
292
257
170
842
5,971
2,518
5,284
1,859
748
677
1,584
7,442
1,474
906
568
6,510
847
4,542
1,521
6,000
48,605

122,951
184,976
521,095
1,429,022
372,247
5,870,917
692,206
265,591
144,758
21,987
18,976
79,670
445,509
289,185
506,955
590,556
68,836
47,783
150,921
665,459
151,966
110,468
41,498
725,545
86,605
475,565
163,177
895,952
925,567

4,795
10,981

1,902,977
951,498
233,591
125,664
77,595
8,260
22,272
715,851
109,876
605,975

1,028,915
555,525
89,278
41,412
55,509
1,554
11,223
597,154
89,019
508,135

8,255
660
4,665
570
1,108
141
2,844
2,255
286
1,947

181,870
67,885
49,244
11,457
11,002
1,874
24,951
18,627
4,515
14,514

1,405
617

867
549

13,553,798
11,299,454

1,708,263
1,449,897

888

518

2,254,544

59
55

26
IT

219,769
48,459

14
12
1,714

4
5
999

1,59S

58,406
15,104
15,946
3,050
3,597
620
6,679
7,759
1,156
6,603

28,845
14,212
8,577
2,361
2,557
432
5,427
5,267
861
4,406

5,419,055
5,514,051
791,442
426,381
279,882
52,236
52,943
984,657
238,655
746,022

424,745
272,285
77,541
42,759
26,527
2,527
5,728
69,809
19,557
50,452

214,470
156,874

25,186

1,199
1,157

18,058

8* 562
44,577
10,994
149,241
16,562
9,045
5,697
1*256
676
5,414
21,888
15*056
15,265
10* 152
4,022

1*1U
50,090

6,100
4,559
1,761
28,758
2,919
20,109
5,750
54,700
256,402
89,074
10,154
50,958
2,520
8,899
19,256
59,122
5,121
54,001

r

62

-

4,290
5,751
559

IS
12,280
7,077
799
6,278
891
409
1)180

225
228
485
1,550
558
5,999
545
578
1
207
586
586
225
12
126
645
141
106
55
955
58
718
179
1,204
26,51*
19,119
6,552
7,240
149
578
24
6,689
4,844
605
4,259

396

- 7 -

Table 1« - Corporation income tax returns,
1948, by major industrial groups and minor industrial groups, for returns with net income
and returns with no net income: Number of returns, total compiled receipts, net income or deficit, and dividends paid in cash and
assets other than own stock) also, for returns with net income, the income tax — Continued

Major industrial groups and minor
industrial groups 4/ - Continued

243
244
245
246
247
248
249
250
251
252
255
254
255
256
257
258
259
260
261
262

263
264
265
266
267
268
269
270

271
272
273
274
275
278
277

278

Finance, insurance, retd, estate, and lessors of real
property - Continued
Finance - Continued
Security and conmodity—exchange brokers and
dealers
Insurance carriers and agents
Insurance carriers
life insurance companies
Mutual insurance, except life or marine or fire
insurance companies issuing perpetual policies
Other insurance carriers
Insurance agents and brokers
Real estate, except lessors of real property
other than buildings
Real estate operators including lessors of
buildings
Developers of real property, including traders on
own account
Real estate agents, brokers, and managers
Title abstract companies
Other real estate, except lessors of real
property other than buildings
lessors of real property, except buildings
Agricultural, forest, and similar properties
Mining, oil, and similar properties
Railroad property
Public-utility property
Other real property, except buildings
Services
Hotels and other lodging places
Personal services
laundries, cleaners, and dyers
Photographic studios, including commercial
photography
Other personal services
Business services
Advertising
Other business services
Automotive repair services and garages
Miscellaneous repair services, hand trades
Motion pictures
Motion picture production
Motion picture theaters
Amusement, except motion pictures
Other services, including schools
Nature of business not allocable
For footnotes, see pp, 25-26.

(Money figures la thousands of dollars!
Returns with net Lnccme 2/
Total
number
Number Total
coiqpiled
Net
Income
of re­
of
turns 5/ returns receipts 6/ income 2/
tax h/

1,597

787

9,605
2,527
846
610

7,252
2,097
775
565

1,071
7,078
114,580

Returns with no net income 2/
Dividends
Dividends
Number
Total
paid in
paid in
of
compiled
cash and
Deficit 2/ cash and
returns receipts 6/
assets
assets
other than
other than
own stock
own stock

22,057

5,510

6,956

699

46,116

8,880

485 243

6,086,950 1,970,556
5,706,582 1,897,948
1,685,276 1,492,471
57,192
50,129

155,055
111,449
2,007
11,624

162,776
140,227
45,294
558

2,101
555
61
45

210,989
175,488
1,095
291

18,541
15,525
155
222

2,183 244
2,116 245
97 246
7 247

757
5,155
72,099

5,985,914
580,548
2,746,561

575,548
72,408
724,966

97,818
21,586
198,490

94,575
22,549
155,075

249
1,746
56,002

172,104
57,501
497,584

15,168
5,018
115,518

2,012 248
67 249
4,622 250

128,885

85,749

59,929

2,286,080

578,167

157,282

115,849

24,881

421,916

76,640

3,496 251

12,681

6,948

256,044

94,461

26,967

7,264

4,744

56,759

25,915

434 252

5,762
1,555
11,055

2,099
799
2,524

101,729
44,242
78,266

16,268
10,866
25,204

4,519
5,220
6,702

2,548
5,927
5,685

1,477
460
4,440

25,255
4,548
12,206

2,808
410
9,747

152 255
6 254
532 255

6,441
957
2,851
571
148
2,114
54,175
6,027
11,599
6,221
1,156

5,864
556
1,981
186
88
1,075
29,412
5,667
6,796
5,749
577

296,576
18,262
164,245
78,556
25,689
9,824
7,460,049
1,514,562
1,206,188
926,817
66,440

165,280
10,006
87,008
48,510
12,526
5,650
755,282
151,851
80,450
56,616
5,825

57,507
2,905
50,255
18,142
4,616
1,591
245,907
45,759
25,180
17,055
904

97,654
4,150
56,765
51,908
2,851
1,960
162,070
22,856
14,485
9,554
601

2,247
590
781
154
55
887
21,044
2,160
4,467
2,267
547

55,124
2,595
5,958
24,326
545
1,902
1,557,925
231,131
285,781
208,065
27,316

15,269
1,752
4,560
4,445
311
2,201
124,931
16,608
15,150
9,186
2,165

586
17C
521
54
17
46
10,788
576
217
157

4,222
10,500
2,804
7,696
4,159
2,155
5,491
1,150
4,541
6,548
7,756
15,110

2,470
6,811
1,774
4,057
2,598
1,252
5,551
401
5,150
2,498
5,259
955

212,951
1,714,722
1,095,468
619,254
509,205
214,880
1,650,955
892,511
758,444
552,702
556,855
99,225

19,991
152,755
76,508
76,427
55,489
16,110
211,410
95,550
117,880
76,507
52,750
12,545

5,221
51,151
26,657
24,514
9,556
5,071
70,885
55,111
57,774
26,178
16,547
5,602

4,548
52,170
15,070
17,100
2,568
929
64,544
54,079
50,265
16,556
8,204
1,550

1,655
4,085
907
5,176
1,407
854
1,606
585
1,025
5,512
5,155
5,215

50,400
269,707
88,389
181,318
62,007
53,575
404,461
332,299
72,162
142,924
128,559
22,882

5,799
15,275
4,628
10,645
5,684
3,310
58,503
34,478
4,025
17,653
14,750
12,767

51
244
84
16C
61

256
257
258
259
260
261
262
265
264
265
29 266

6
9,467
9,174
293
117
96
1,196

267
268
269
270
271
272
275
274
275
276
277
278

Tabla 2. - Corporation incoms tax returns, 1/ 1948, by major Industrial groups: Number of returns, compiled receipts, compiled deductions, compiled net profit or net loss, net income or deficit,
net operating loss deduction, income tax, compiled net profit less income tax, and dividends paid by type of dividend
(Money figures in thousands of dollars)
Major industrial groups 4/
Mining and quarrying
NonBitumi­ Crude
Anthra­ nous
petrole­ metal­
cite
Mstal
coal
lic
um and
Tying and
mining
natural
mining
lignite gas pro­ and
quar­
mining
duction
rying

“ n i -------- Agriculture.forestry, and fishery.
Farms
industrial
Total
Total
groups
agricul­ and
mining
Fish­ and
agricul­ For­
ture,
forestry, tural
estry ery
quar­
and
services
rying
fishery

1 Number of returns 7/
Receipts:
2 Gross sales 8/
3
Gross receipts from operations 9/
Interest on Government obligations
(less amortizable bond premium):
4
Wholly taxable 10/
5
Subject to surtax only 11/
Wholly tax-exempt 12/ —
6
7
Other interest
Rents 13/
8
9 Royalties 14/
Excess of net short-term capital gain
10
over net long-term capital loss 15/
11 Excess of net long-term capital gain
over net short-term oapital loss 15/
Net gain, sales other than capital
12
assets 16/
Dividends, domestic corporations 17/
IS
14
Dividends, foreign corporations lB/
Other receipts
IS
Total compiled receipts 6/
16
Deductions:
17
Cost of goods sold 19/
Cost of operations 19/
18
19
Compensation of officers
Rent paid on business property
20
Repairs 20/
21
Bad debts
22
23
Interest paid
Taxes paid 21/
24
Contributions or gifts 22/
25
26
Depreciation
27 Depletion
28 Amortization 23/
29
Advertising “
30 Amounts contributed under pension
plans, etc. 24/
31 Net loss, sales other than capital
assets 16/
32
Other deductions
S3
Total coopiled deductions
34 Compiled net profit or net loss
(16 less 35)
55 Net income or deficit^ (34 less 6)
36 Net operating loss deduction 25/
37 Income tax 3/
38 Compiled net profit less income tax
(34 less 37)
Dividends paid:
59
Cash and assets other than own stock
Corporation's own stock
40
For footnotes, see pp. 25-26.

594,243

7,694

7,021

259

414

9,085

900

203

2,163

3,987

1,852

Manufacturing
Con­
struc­
tion

23,480

Total
manufac­
turing

116,746

Bever­
ages

3,378

Food
and
kindred
products

11,195

Tobacco
manufac­
tures

Textilemill
products

225

6,078

Apparel
and
products
made
from
fabrics
14,672

339,081,072 1,442,208 1,597,817 18,444 25,947 6,495,729 1,178,021 500,202 2,346,540 1,810,549 660,417 2,356,035 193,577,108 5,253,054 51,212,410 5,024,069 12,093,262 8,110,849
159,912
210,273
242,503
21,946
5,264
3,738,057
625,577 83,504 6,871,519
341,377
316,533 4,910 19,934 1,101,197
294,502
56,484,248
38,500 59,314
1,305
107
24
1,933
5,353
8,430
60

3,740
59
70
2,759
3,468
2,018
156

294
51
5
534
5,185
10,555
9

1,797
120
' 66
2,089
12,286
14,501
179

1,825
97
16
2,828
6,852
31,446
1,232

642
54
29
657
2,968
1,295
17

1,498
79
503
4,264
22,699
1,571
489

81,952
4,604
3,595
158,711
274,941
143,U 5
4,363

1,893
111
152
4,277
4,653
377
502

4,391
452
385
12,110
21,627
4,823
601

120
48
47
8U
3,060
12

IS

7,796
361
186
8,847
30,759
59,815
1,593

6,951
148
236
7,648
16,208
2,003
770

7,720

590

36,164

1,720

1,691

9,107

19,472

4,174

20,079

327,506

11,264

28,405

1,283

17,699

3,796

1,192

5

6,005

315

84

785

4,432

389

5,434

21,782

1,444

4,291

55

1,986

1,017

1,476,728
230,482
162,972
5,556,503
3,056,565
451,701
22,392

731
224
no
3,496
13,922
7,258
448

627
222
94
3,155
13,577
6,995
225

16
307
281
265
210

826,707

22,258

14,148

364,514

3,061

1,864

65
-

39
2
-

34
64
•

102,303
34,823
2,188
10,785
716,388
5,808
28,691
5,937
154
77
38,558
9,516
17,418
2,842
2,195,956
6,168
24,598
4,948
•
. 665
527
2,793
4
914
72
236
30
267,386
382,425
2,789
576
22,036
230
3,247
188
27,644
95,595
912,298
31,294
2,675,585
5,431
1,421
14,872
5,958
17,888
16,840
729
319
55,326
106,020
2,619
58,882
26,466
410,965,648 1,861,942 1,780,823 34,295 46,824 7,906,995 1,275,171 588,841 2,714,554 2,566,527 762,122 9,389,055 200,O U , 406 5,337,302 51,586,154 5,040,460 12,443,891 8,406,959
261,404,075
32,819,605
26/6,735,267
5,524,957
5,826,381
711,500
2,758,685
7,481,725
239,557
6,298,641
1,711,272
38,959
5,465,984
1,155,499

951,280
158,507
42,722
28,299
34,190
2,347
12,606
31,074
1,038
49,422
3,248
41
8,815
3,345

239,468

2,597

914,784 16,099 20,397 4,124,246
728,775
146,668 1,521 10,318
40,186
858 1,698
88,305
310
27,928
61
39,901
114,593
32,314
118 1,758
2,258
69
6,540
40
U,496
792
518
45,881
29,071 1,217
786
196,030
5,447
26
1,001
47,144
524 1,754
258,661
•
2,343
905
553,755
41
3,756
41
72
5,752
8,702
3,279
31
55
17,349

n

1)972

247

178

12,U 7

708,773 421,015 1,719,135
27,368 41,900
205,930
5,425
28,634
5,490
6,194
9,096
2,730
48,479
11,310 U,906
745
1,005
589
4,102
2,960
8,612
50,528 12,517
48,026
204
227
1,109
67,865
29,690
2
105,139 13,542
88,691
227
389
247
1,052
1,099
5,869
2,554
651

n, u

1,168

957

4,684

878,4 U
405,709
50,848
17,894
17,779
2,585
26,U 4
69,403
1,385

n8,8S5
323,943
3,061
1,625
7,496
4,691

396,912 1,808,866 145,925,265 8,393,222 26,538,600 2,501,047 9,219,319 6,597,607
47,868 5,647,202
2,386,007
7,399
66,803
1,171
131,301
180,201
321,255
51,503
19,908
2,469,915
197,188
9,066
171,513
260,320
3,987
54,099
759,354
13,649
73,866
1,786
35,259
66,008
45,967
2,920,591
40,599
254,622
4,663
148,971
25,119
16,176
12,204
160,014
1,618
2,492
17,303
253
5,525
8,169
4,095
23,042
581,550
20,915
65,853
25,107
55,375
17 ,Í44
85,062
261,095
15,756
3,568,001
621,908
78,866
174,266
68,708
522
4,849
5,142
8,828
628
21,015
8,942
127,840
2,807,967
257,121
31,060
71,561
10
147,266
34,397
»
: *
1,057,378
2,821
22,418
1,216
918
138
1,751
79
10,054
46
108
6
102
1,731
20,741
1,940,855
145,384
366,868
59,648
62,959
77,0U
658,927
52,407
779
9,693
10,761
6,290
28,176
7,794

n9,450

617

1,852

62,161

,on

4,282

7,105

33

7,887

1,918

479,517 2,307,437
84,739
166,181
237,246 76,986
667,706 16,466,556
752,359
798,379
43,970,321
312,955
502,289 3,193 7,473
554,740
49,902 24,425
27/376.377,652 1,642,286 1,571,456 25,667 45,163 6,755,826 1,003,647 549,061 2,404,642 2,147,023 649,453 8,8U,712 181,894,023 4,869,199 30,477,763 2,798,679 10,955,960 8,129,030
419,504
577,323 18,117,583
468,105 1,108,391
209,367 8,628 1,661 1,133,169
271,524 39,780
309,692
241,781 1,507,931 277,929
34,587,996
219,656

n2,669

34,425,024
203,855
11,920,260
22,667,736

219,546
4,770
79,060
140,596

209,273
4,370
75,559
133,808

9,386,475
1,024,707

63,150
4,906

60,328
4,356

8,612 1,661 1,152,983
7,164
194
206
2,488 1,013
413,678
739,491
648
6,140

271,454 39,775
1,419
285
88,281 12,631
183,245 27,149

309,626
916
U3 , 038
196,654

2,257
-

156,522 18,669
45
-

76,885
7,498

565
550

464,070
25,891

419,488 112,640
3,716
880
157,417 42,s n
262,087 70,558
175,854
15,475

56,140
2,873

577,020 18,US, 988
60,942
10,861
6,821,585
367,212 n , 295,798

210,
in

87,481
37,153

4,636,772
637,282

467,951 1,108,006
993
4,111
189,181
443,412
278,922
664,979
108,546
16,502

358,024
22,056

241,734 1,507,695
8
2,253
91,426
576,468
150,355
931,463

277,905
2,613
121,764
156,165

293,565
70,479

60,167
18,641

89,U 2
16

Table 2. - Corporation income tax returns, 1/ 1948, by major industrial groups: Number of returns, compiled receipts, compiled deductions, compiled net profit or net loss, net income or deficit,
net operating loss deduction, income tax, compiled net profit less income tax, and dividends paid by type of dividend - Continued
(Money figures in thousands of dollars)
Manufacturing
Lumber
and wood Furniture
products, and
Paper
fixtures and
except
furniture
allied
products

ii

5,865

4,327

' 2,556

Printing,
publish­
ing, and
allied
indus­
tries

12,497

Chemicals
and
allied
products

7,411

Petroleum
and coal
Rubber
products
products

634

651

Leather
and
products

5,005

Stone,
clay,
and
glass
products

4,193

Primary
metal
indus­
tries

5,053

Fabri­
Machinery,
cated
except
metal
products, transpor­
except
tation '
ordnance, equipment
machin­
and elecery, and trical
transpor­
tation
equipment
9.340

9,658

Motor
Transpor­ vehicles
Ord­
and
tation
Elec­
equipment* equipment, nance
trical
and
except
machinery except
motor
electrical acces­
and
sories
equipment vehicles

3,009

1,056

1,553

Scien­
tific in­
struments;
photo- i..
Other,
graphic
equipment; manufac­
turing
watches,
clocks

55

1,672.

10,865

4,338,526 2,409,189 5,903,462 5,078,977 13,885,314 18,801,166 3,315,622 3,126,013 4,053,140 16,230,078 9,280,691 14,616,489 8,663,701 2,951,497 15,509,839 254,515 1,899,999 4,790,246
8,585
54,084
8,646
648
770,144
241,496
38,921
604,807
61,220
25,806
7,426
11,061
86,659
610,021
473,438
16,795
79)292 * 19,110

Gross sales 8/
Gross receipts from operations 9/
Interest on Government obligations
(less amortizable bond premium):
3,845
703
2,193
Wholly taxable 10/
4
'208
89
24
Subject to surtax only 11/
178
26
146
Wholly tax-exempt 12/
: 6
6,175
2,406
787
Other interest
7
7)386
7*676
2,196
Rents 13/
8
4^809
'402
5)686
Royalties 14/
9
'ill
25
184
io 'Excess of net short-term capital gain
over net long-term capital loss 15/
14,028
2,807
93,160
11 Excess o-f net long-term capital gain
over net Short-term capital loss 15/
1,123
1,654
222
12 1Net gain, sales other than capital
assets 16/
11,782
10,264
1,522
Dividends, domestic corporations 17/
13
7)923
1*262
171
Dividends, foreign corporations 15/
14
13^314
29*029
31,552
Other receipts
15
4,567)l22 2,45l)587 6,005)731
Total compiled receipts 6/
16
Deductions :
3,216,826 1,801,904 4,235,455
Cost of goods sold 19/
17
6,091
51^014
12^914
Cost of operations B /
18
73*457
85)257
88*640
19 Compensation of officers
23)241
12^897
15*238
Rent
paid
on
business
property
20
148)644
16*098
42*211
21 Repairs 20/
3¡424
3)056
7¡364
Bad debts
22
18)113
15*204
6,620
Interest paid
23
65'835
30,509
85,568
Taxes paid 21/
24
2*285
5)279
2*912
Contributions Or gifts 22/
25
107,687
23j409
77^488
26 :Depreciation
4,954
89*475
155
27 Depletion
63
13
33
28 Amortization 23/
23,754
9,917
21,977
29 Advertising —
24)524
3)223
4)540
30 Amounts contributed under pension
plans, etc. 24/
607
1,250
2,006
,31 Net loss, sales other than capital
assets 16/
448,049
266,958
342,036
Other deductions
4,028^428 21278)831 5,221,555
Total compiled deductions
538*694 'l72',756 '784,176
Compiled net profit or net loss (16 less S3)
785,998
538'548
172,730
Net income or deficit Zj (34 less 6)
2'159
926
1*642
Net operating loss deduction 25/
196,147
70)244 295,838
Income tax 3/
102,512
488,338
542)547
Compiled net profit less income tax
(34 less 37)
Dividends paid:
170,843
34,666
99,570
Cash and assets other than own stock
29)016
9'.897
ll',264
Corporation's own stock
2
5

,5

For footnotes, see pp. 26-26,

291
57

790
122
25
1,259
1,062
1,961

1,296
106
65
2,336
7,615
2,368
173

4,109
486
276
4,949
18,19)1
ll)243
49

6,979
480
396
17,680
14,336
20,731
407

8,642
354
172
11,309
89,019
25,545
189

1,154
18
9
1,313
1,832
4,063
,2

828
29
28
1,184
1,993
256
9

2,487
219
117
2,750
4,914
3,178
46

11,291
209
167
25,144
18,481
8,012
244

3,549
268
172
5,639
11,394
4,369
151

7,743
523
422
10,837
23,373
17,448
565

2,543
149
175
10,094
6,212
11,603
204

2,357
38
35
5,424
3,281
3,811
44

6,906
379
121
4,509
4,637‘
5,908
26

557
462
77
i

11,426

11,257

40,161

924

1,771

5,018

17,628

14,820

12,870

17,541,

8,423

5,094

224

1,411

8,296

1,015

1,186

972

102

152

357

472

1,360

1,751

534

1,010

72

17

154

876

21

??/

14,607
7,195
59,793
291
22,586
10,350
22,472
43,057
22,098
6,417
1,956
246,594
20,891
125,510
22,358
3,000
47,248
40
3,750
12,079
2,950
19,257
11,938
14,050
93
10,961
23,217
58,041
22,553
2,645
26,015
99,290
15,298
29,107
738
27,008
89,122
51,915
36,506
24,439
15,746
74,992
13,220
50,573
61,105
1,947,011
4,905,667
13,748,268
237,719
3,786,481
9,469,584
15,064,568
8,812,950
17,010,126
6,279)735 14,254,593 19,967,177 3,389,793 3,161,119 4,159,809
3,862,185 9,570,383 13,561,399 2,470,280 2,579,573 2,786,303 12,669,542 6,683,026 10,197,889 6,384,654 2,440,048 10,395,343 164,044 1,252,182 3,404,454
25,449
4,214
3,363
575
8,094
609,236
34,855
56,044
448,737
14,382
7,072
1,391
428,081
49,277
258,345
166,233
49,968
2,452
38,023
31,111
81,908
256,969
113*895
223,581
76,942
65,715
20,499
33,158
218)045
154,510
10,875
34*268
23,221
341
15,935
47,874
38,789
55,745
49,699
12,316
13,171
18,355
43,907
120,920
56,976
42,785
221,281
119,878
71,601
253,138
7,652 ■„ 26,252
143*487
582,658
105,784
62,155
22,772
324,058
231,899
33,227
11,023
1,827
1,884
2,255
194
6,542
14,614
10,284
10,799
3,643
2,171
14,971
2,438
10,544
18,639
16,579
12,527
18,247
5,596
476
28,361
41,736
74,475
21,877
12,767
6,998
66,498
15,438
43,220
18,226
68,421
56,504
5,122
181,833
60,151
351,659
216,144
121,614
241,922
58,116
31,713
405,954
99,779
205,964
76)350
3,911
504
2,268
1,346
4,166
4,133
12,289
6,490
7,548
2,459
4,685
999
2,702
5,681
7,440
61,844
29,719
3,167
49,048
172,580
120,082
224,169
91,653
317,187
127,358
19,581
461,133
53,521
75,245
272,940
1,826
2
69
1,006
894
288
257
63,194
2,361
34
871,470
32
17,622
729
56
493
57
92
275
289
74
1,321
7
261
3,261
131
886
73,223
2,227
46,029
76,157
115,705
12,198
143,422
77,305
35,802
25,751
25,728
36,846
76,696
391,572
34,676
10,777
15,862
18,538
3,483
14,528
83,488
62,585
29,566
12,048
8,305
7,391
108,042
69,529
27,149

so,ia

1,702

5,139

1,013,278 1,501,156
5,701,646 12,572,229
578,089 1,682,364
577,815 1,681,968
3)248
5,688
215,974
609,526
362,115 1,072,838
156,087
12.453

539,224
55.918

1,190

1,026

1,502,451 351,785
17,983,967 5,154,814
254,979
1,983,210
254,970
1,983,038
430
3,067
92,297
660,044
162,682
1,323,166
703,109
168.971

65,823
2,186

3,510

600

230,951
765,214
923,629 1,809,293
237,547
402,224
610,201
3,029,054 3,609,185 15,280,715 8,445,597 13,322,482 7,936,643 5,554,018
232,468
876,307
152,065
530,626 1,729,411 1,023,787 1,741,886
232,435
876,152
550,509 1,729,244 1,023,615 1,741,464
132,037
7,291
8,673
5,865
3,468
2,242
1,844
807
96,628
068,698
539,091
644,825
390,510
202,687
57,448
155,840
557,216
633,277 1,073,188
74,617
527,939 1,084,586

725,542
12,065,070
1,683,198
1,683,077
1,695
628,472
1,054,726

97,695
*»705

562,678
6.328

815

42,218
5,665

2,560

125,169
13.673

4,692

366,645
59,714

3,987

217,635
45,140

6,358

585,967
45,934

2,617

207,630
14,448

2

498

4,737

16,506
245,217 - 652,123
206,525 1,734,273 4,578,367
31,194
212,758
325,300
525,235
51,173
212,713
5*515
569
37
12,427
80,499
137,979
187,321
132,239
18,767
7,476
_.

-

69,433
31.000

77,694
14.676

Table 2. - Corporation income tax returns, 1/ 1948, by major industrial groups: Number of returns, compiled receipts, compiled deductions, compiled net profit or net loss, net income or deficit,
net operating loss deduction, income tax, compiled net profit less income tax, and dividends paid by type of dividend - Continued
(Money figures in thousands ofdollars^

Total
public
utili­
ties

For footnotes, see pp. 25-26.

25,225

Other
public
utili­
ties

1,275

1,811

18,055

4,084

Total
trade

196,748

Total
wholesale
64,840

Commis­
sion
mer­
chants
9,283

Other
whole­
salers

55,557

Total
retail

110,815

^_______________ _

Furniture
General
and house
merchan­ Apparel
and
furnish­
dise
accesso­ ings
ries

Food

8,610

6,852

14,818

9,165

Automo­
tive
dealers
and
filling
stations
21,420

Drug
stores

4,905

Building
Eating
materials
and
drinking and
hardware
places
14,005

9,594

4,469 155,054,746 65,489,855 5,026,926 62,462,927 57,726,327 11,994,035 14,864,164 5,248,696 2,226,456 12,087,781 1,441,758 1,985,020 2,772,421
127,147
11,705
570,918
514,239
24,527
104,875
67,832
55,557
519,582
15,646
52,288
78,586
808,292
764,236 1,009,859
2,806,410 1,774,075
28,017)442 18,001,729 3,605)456 6,245,999 166,258

7,932
137
262

491
15
8
2,821
4,320
468
85

1,425

8,515

4,840

115

1,158

802

25,350
l)650
707
108,641
386^163
12)505
l)S34

14,965
l)55S
"459
61,709
332,241
9*,413
l',240

4,481
23
30
15,598
27^557
1,267
10

5,745
69
152
52,886
25,280
1)563
84

159
5
86
448
1,105
260
-

18,515
844
694
80,755
211,906
14,557
3,919

8,415
511
340
31,575
46,038
9,817
1,715

1,267
52
35
5,824
5,880
1,571
599

7,148
259
505
25,749
42,158
8,446
1,516

8,866
468
249
41,770
145,765
2,509
1,852

404
29
26
1,892
9,772
581
100

5,718
151
71
15,782
62,652
350
42

1,161
41
19
2,032
26,053
142
35

642
20
19
4,585
4,969
34
51

1,091
64
14
10,128
15,604
346
1,054

114
15
8
415
4,927
157
2

68,000

48,198

4,456

12,883

2,465

84,345

58,384

2,414

50,970

59,546

5,125

4,241

2,141

1,742

12,251

7,876

917

415

528

580

1,832

7,585

6,891

139

394

161

14,559

4,659

450

4,229

38,936
2,164
45,965
10,564
56,527
101,876
1,970
205,953
80,280
102,214
590,417
10,633
700
24,242
24,805
561
2
45,085
1,529
5,698
5,643
12^872
601,967
24,760
54,224
326,226
1,069,155
580,450
25,371
2,103
129^517
7^729
94^514
29,676)420 19,051^467 3,883^913 6,561)551 179)489 137)505)500 67,861,960 5,872,183 63,989,777 59,434,856 12,118,891
89,405
5,355
259,959
557,699
18,475^032 12,942)561 2,155,881 3,305,766
19^819
31,569
"182^981
'258^279
44)604
665^315
65)892
776^121
l)451
5)504
44^619
52^946
5^335
10^771
8^298
24*598
296,259
442^528
119)266
875^802
551)542
235,251
895)524
1,698^660
2)582
9)371
3^952
16^025
536)409
775)l82
332)310
1,659)855
15
20,375
15,465
53^929
l',294
254
17^816
19^567
14)518
48^982
20,712
84^419
69,028
112)349
210)639
28)761
25,555

17,256

317

7,798

16,050

5,265

905

4,562

8,903

1,300

495

2,047
927
2,541
1,189
7,486
3,796
15,766
5
85
SS4
g
59
1
9,441
51,105
12,125
14,877
105,598
73,151
97,005
175,005
15,200,064 5,455,171 2,577,059 12,524,475 1,477,554 2,069,555 2,843,755

3,002 107,124,055 57,165,55$ 2,805,199 54,358,356 42,132,279 9,892,219 9,893,926 5,495,453 1,414,530 9,425,091
10,888
36,279
209,180
20,039
488,525
58,100
714,421
287,571
1,602,947 1,001,992
74,824
153,511
97,616
347,708
72,294
118,701
864,512 1,169,104
125,999
990,511
2,376,762
3,910
248,539
57,346
101,425
274,950
98,307
1,028,789
207,736
21,652
1,339)163
229,388
2,312
57,692
17,674
8,412
38,405
68,060
250,713
84,225
5,109
87,332
'348,043
1,392
13,039
17,614
14,808
27,842
4,655
110,555
70,087
5,782
206,885
75,869
194
9,193
21,820
9,377
22,101
104,455
11,276
8,795
99,972
108,765
15,749
235,812
85,615
26,093
52,258
190,881
75,511
565,607
297,541
15,480
16)545
960,150
515,021
7,482
5,105
2,058
11,405
3,639
35,528
24,239
2,149
26,388
66,088
120
14,955
66,345
97,477
58,820
67,152
402,863
185,196
10,000
195,196
666,875
15,954
85
9
45
41
978
56
13,991
14,533
542
16,255
74
715
143
424
74
81
2,190
695
57
732
S
3,197
112,470
154,629
67,140
555,888
56,955
818,277
255,255
19,409
274,664
1,171,586
207
4,089
1,297
5,287
58,230
87,272
11,550
5,287
44,124
49,411
143,150
501
184

430
18
22

671

1,555

601

1,501

991,528 1,097,265 2,107,910
16,239
5,554
62,227
05,581
75,299
37,010
16,541
49,291
92,580
9,093
24,228
7,115
10,955
815
429
7,443
2,907
5,452
26,704
18,467
38,082
1,692
735
676
20,501
58,547
15,040
625
“
*
73
325
66
15,764
19,265
13,640
1,056
1,269
1,482
125

1,558

514

529,835
291,554
588,752
541,265 1,165,247
405,021 4,690,689 9,151,592 1,474,585 2,958,792 1,000,229
275,071
407,181 14,513 15,469,481 5,095,710
1,680,787
986,222
2,658,504
26^227^693 17,531^399 3,357)349 5,389)683 149,262 151,746,245 65,632,332 3,716,933 61,915,399 56,337,208 11,864,045 14,077,076 5,215,775 2,264,563 11,601,879 1,438,085 2,058,750
50,805
185,249
59,469
112,496
922,596
239,393
254,846 1,122,988
155,250 2,074,878 3,097,648
5,759,055 2,229,628
526)564 l)l7l)868 30)227
5^448^727 l)72o)068
5,448,020 1,719,629
18",335
21,654
1,204^804
649^661
2)243)923 1,070)407
1,452,576
38)300

417,890
10',466

526,534 1,171,716 30,141
1,092
l',243
'986
135^611
409,692
9,840
590)953 762)176 20,387
400,290
l)932

623,039
25.152

11,357
770

5,758,361 2,229,288
13,888
27,648
840,185
2,127,938
5,651,117 1,589,443

155,215
2,255
56,600
98,650

2,074,073
11,655
783,585
1,290,793

3,097,399
11,270
1,132,177
1,965,471

254,820
967
97,900
156,946

1,122,917
732
419,563
705,425

239,379
1,669
85,276
154,122

112,477
1,045
39,105
73,391

922,582
1,372
330,272
592,324

59,461
523
14,769
24,700

30,781
2,309
18,522
12,481

185,241
567
60,651
124,598

416,876
97,219

55,373
4.649

581,505
92,570

572,579
86.382

55,948
5.696

290,027
11,663

46,676
5,482

15,459
4.581

81,835
42,517

12,121
695

12,944
1*855

26,965
8,298

1,077,914
198.964

383

Number of returns Tj
Receipts:
Cross sales 8/
Cross receipts from operations 9/
Interest on Government obligations
(less amortizable bond premium):
Wholly taxable 10/
Subject to surtax only 11/
Wholly tax-exempt 12/ —
Other interest
Rents 13/
Royalties 14/
Excess of net short-term capital gain
over net long-term capital loss IS/
Excess of net long-term capital gain
over net short-term capital loss 15/
Net gain, sales other than capital
assets 16/
Dividends, domestic corporations 17/
Dividends, foreign corporations ljy
Other receipts
Total compiled receipts 6/
Deductions:
Cost of goods sold 19/
Cost of operations la/
Compensation of officers
Rent paid on business property
Repairs 20/
Bad debts
Interest paid
Taxes paid 21/
Contributions or gifts 22/
Depreciation
Depletion
Amortization 23/
Advertising —
Amounts contributed under pension
plans, etc. 24/
Net loss, sales other than capital
assets 16/
Other deductions
Total compiled deductions
Compiled net profit or net loss
(16 less S3)
35 Net income or deficit Zj (54 less 6)
56 Net operating loss deduction 25/
57 Income tax 3/
3S| Compiled net profit less income tax
(54 less 57)
Dividends paid:
39| Cash and assets other than own stock
40| Corporation1» own stock

Electric
Transpor­
Communi­ and gas
tation
cation
utilities

^

Corporation income tax returns, 1/ 1948, by major industrial groups: Number of returns, compiled receipts, compiled deductions, compiled net profit or net loss, net income or defici
net operating loss deduction, income tax, compiled net profit less income tax, and dividends paid by type of dividend — Continued
_______________________ (Money figures in thousands of dollars)________

Trade
Ratail-Cont, "

Other
retail
trade

1 limber of returns 7/
Receipts:
2 Gross sales 8/
Gross receipts from operations 9/
S
Interest on Government obligations
(less amortizable bond premium):
Wholly taxable 10/
4
Subject to surtax only 11/
5
Wholly tax-exempt 12/
6
Other Interest
7
8 Rents 13/
Royalties 14/
9
10 Excess of net short-term capital gain over
net long-term capital loss 15/
Excess of net long-term capital gain over
11
net ehort-term capital loss 15/
12 Net gain, sales other than capital assets 16/
Dividends, domestic corporations 17/
13
Dividends, foreign corporations 187
14
Other receipts
IS
Total compiled receipts 6/
16
Deductions:
Cost of goods sold 19/
17
Cost of operations 19/
18
Compensation of officers
19
Rant paid on business property
20
Repairs 20/
Bad debts
Interest paid
Taxes paid 21
24
Contributions or gifts 22/
25
Depreciation
26
Depletion
27
Amortization 25/
28
Advertising
Amounts contributed under pension plans,
30
etc. 24/
Net loss, sales other than capital assets 16/
Other deductions
Total compiled deductions
54 Compiled net profit or net loss (16 less 35)
55 Net income or deficit 2/( 3 4 less 6)
56 Net operating loss deduction 25/
57 Income tax 5/
58 Compiled net profit less income tax (54 less Vt)
Dividends paid:
Cash and assets other than own stock
59
Corporation*s own stock
40

2
1
222
5

J

29

SI
52
55

For footnotes, see pp. 25-26.

21,446

Total
finance,
insurance,
Trade
real estate,
not
allocable and lessors
of real
property

21,095

5,156,016
114,019

9,838,566
224,045

815
117
62
5,822
11,556
314

223

1,252
65
105
7,592
20,105
2,411
552

4,488

11,415

2,024
6,415
7,647
86,718
72,547
5,570,556 10,208,484
1,551
5,020

6

Total
finance

Insurance carriers and agents
Securi­
ty and
commod­
ity ex­
change
brokers
and
dealers

Total
insurance
carriers
and
agents

Insurance
carriers

1,486

9,355

2,452

«
m
569,223 471,819

30,524
60,508

•
75,714

4,313,887

5,921,490

5,005
786,875
809,976
1,557,040
214
200,689
222,515
202,791
212
157,454
121,995
117,528
5,200,451 2,094,884 1,694,765 298,721
110,679
5,950
134,986
1,917,450
2,257
202
199,651
54,984
2,055
388
8,847
5,590

13,650
1,257
2,231
97,791
18,811
52,469
2,438

6,448
651
2,222
5,609
1,546
76
509

514,785
19,201
54,675
1,065,860
108,254
266
505

514,502
19,164
54,649
1,064,177
105,655
59
500

70,618

57,098

30,524
63,661
6,691,992 1,177,264

251,849

127,618

14,872

58,117

15,240

14,360

2,625
78,754
5,011
501,072
18,167 12,590
618,945
836,979
2,231
47,215
200
49,996
58,976 28,185
95,601
255,554
15,474,469 5,600,905 5,581,954 840,686
41,669
70,440
26/787,466
230,318
167,575
281',269
912,834
743,146
20,170
452,056
45,116
497
97,163
81,070

24,169
22,786
459,502
78,459
28,880
266,709
537,911
171,450
12,927
79,905
6,555
•
61,742
61,155

•
•
•
552,320 48,406
49,275 18,872
1,825
24,822
198,752 62,813
556,851 126,646
132,695 18,512
1,144
9,754
8,629
61,566
4
568
•
59,265 18,505
5,116
49,880

7,828,221
112,650
217,147
80,986
29,998
20,461
22,614
81,522
4,572
68,814
742
275
78,595
6,467

1,480
801,555
5,180,555
189,805
189,741
2,486
66,519
123,484

6,707
51,286
62,255
106,097
1,882
6,755,174 1,790,850 1,236,634 522,844
1,222,179
9,776,705 27/10,791,858 5,665,009 2,545,242 637,821
4,682,651 1,955,896 1,038,692 202,865
451,779
921,564 202,653
4,525,177 1,815,903
451,674
2,562
2,091
57,077
7,066
2,490
272,285 77,541
424,745
815,575
155,576
766,409 125,524
276^205
5,869,056 1,511,153
88,459
15,565

«

7,500

160,645

5,816,577
70,059
175,584
89,810
20,056
20,400
14,864
55,996
2,558
46,068
119
291
64,526
5,052

50,606
7,615

______ _____ _______________________ ____________

r lueuxwo j n w i u a u w j
Finance
Credit
Holding
agen­
Banks
cies
and
and
other
other
trust
invest­
companies than
ment
banks
companies

1,448,908 1,048,032
66,855
52,561

542,077
42,864

96,518
5,941

Real
estate,
except
Insur­ lessors
of real
ance
agents property
other
and
brokers than
buildings
6,881

Lessors
of real
property,
except
buildings

108,101

6,111

35,157
592,597 1,200,841

"

4,523

8,506

7,459

6,957 64,161
7,699
580,689
249
44,555
7,594
20,846
1,003,284 175,001

655
188,061
1,918
41,568
6,297,919

215
182,978
1,277
28,167
5,879,870

_
55,118
6,265
420
282
7,596
4,968
210
1,922
26
»
2,615
1,755

26/114,182
54,740
4,637
5,706
5,304
134,658
1,754
27,455
16
15,678
16,653

26/26,456
21,575
5,921
1,467
2,015
128,254
970
25,770
16
9,049
14,655

24,169
22,786
25,458
4,051
1,815
4,862
66,838
15,257
1,819
7,988
6,155
'1,559
6,404

744
858
711
5,549
5,729,928
5,955,808
135,614 97,758
524,524 159,622 27/4,511,429 27/5,962,796
1,917,074
1,986,490
678,960 15,579
1,882,425
1,951,815
676,729 15,157
50,528
31,008
457
2,156
111,449
153,055
69,809
5,510
1,805,625
1,855,455
609,151 10,069
601,998
5,284

7,459
472

164,959
2,609

142,545
1,105

483
10,915
404
37
691
26
38,034
1,683
2,579 1,509,527
207
5,163
205
2,751

1,566
117
95
1,675
164,683
139,258
225

86,784

8,941

442
220,222
5,085
27,150
641
855
107,515
15,201
418,049 5,243,945

1,461
2,843
8
11,052
551,700

1,067

87,726
15,167
716
2,259
1,291
6,404
784
5,665

17,500
47,654
207,107
112,260
151,555
9,945
525,224
408,654
5,259
554,009
799
474
21,641
5,050

6,875
4,859
2,505
909
46,595
28,404
250
10,687
57,748
25
102
254

114
55,717
225,880
973,180
548,635 2,655,806
610,159
69,416
609,448
69,590
17,984
680
21,586
198,490
411,649
47,850

7,269
55,536
181,594
150,106
150,011
1,019
57,307
92,799

157,695
7,517

98,222
4,168

4,629
2,018

22,616
1,504

Tabi« 2.

Corporation incrane tax return«, 1/ 1948, by major industrial groups: Number of returns, compiled receipts, compiled deductions, compiled net profit or net loss, net income or deficit,
net operating loss deduction, incrane tax, compiled net profit less income tax, and dividends paid by type of dividend - Continued
(Money figures in thousands of dollars)
Major industrial groups 4/ - Continued
Services
Automo­ Miscel­
Hotels
tive
laneous
Total
and
Persona] Business repair repair
Motion
services other
services services serv­
serv­
pictures
lodging
ices,
ices
places
and
hand
garages trades
Number of returns 7/
Receipts:
Cross sales 8/
Cross receipts from operations 9/
Interest on Covemment obligations (less
amortisable bond premium):
Wholly taxable 10/
Subject to surtax only 11/
Wholly tax-exempt 12/
Other interest
Rents IS/
Royalties 14/
Excess of net short-term capital gain
over net long-term capital loss IS/
Excess of net long-term capital gain
over net short-term capital loss IS/
Net gain, sales other than capital assets 16/
Dividends, domestic corporations 17/
Dividends, foreign corporations 18/
Other receipts
Total compiled receipts 6/
Deductions :
Cost of goods sold 19/
Cost of operations 15/
Compensation of officers
Rent paid on business property
Repairs 20/
Bad debts
Interest paid
Taxes paid 21/
Contributions or gifts 22/
Depreciation
Depletion
Amortisation 25/
Advertising
Amounts contributed under pension
plans, etc. 24/
Met loss, sales other than capital assets 16/
Other deductions
Total compiled deductions
Compiled net profit or net loss (16 less 55)
Net incase or deficit 2/ (54 less 6)
Net operating loss deduction 25/
Income tax 5/
Compiled net profit less income tax (54 less 57)
Dividends paid:
Cash and assets other than own stock
Corporation's own stock
Por footnotes, see pp. 25-26.

50,456
1,695,658
6,887,810

5,827

11,265

9,894

4,005

2,086

Other
serv­
ices,
includ­
ing
schools

Nature
of
business
not al­
locable

6,414

4,166

1

555,223
407,512
212,884 160,459 129,517
75,351 78,584 96,548
874,025 1,065,260 1,702,972 178,024 117,006 1,858,508 564,689 547,528

81,688
28,444

2
5

5,785
178
114
10,506
196,054
12,844
1,289

699
19
IS
1,829
106,577
216
492

261
21
20
507
5,777
70
79

758
79
26
1,155
19,545
5,794
140

125
5

24

264
14,8811
67
512

54,610

7,056

2,877

4,839

9,559

5,157

Amuse­
ment,
except
motion
pic­
tures
5,810

59
415
70
2

1,117
25
6
5,150
58,815
5,58C
109

406
12
3
524
9,282
2,275
87

595
21
46
1,045
2,964
770
68

65 4
29 5
9 6
852 7
2,689 8
407 9
n o 10

170

6,550

2,555

1,224

2,098 n

1,255
862
6,550
1,506
105
780
559
1,257
470
27,646
5,419
1,885
105
7
16,065
5,400
990
1,775
4,688
57
2C
769
5,747
2
115
156,244
14,872
6,655
9,001
52,962
1,291
45,876 14,595 15,192
9,017,974 1,545,695 1,491,968 1,984,429 571,212 248,455 2,055,416 675,626 665,174

466
1,394
8
5,848
122,107

12
IS
14
15
16

62,085
9,876
6,712
1,746
1,56¿
725
1,940
2,531
106
5,586
195
15
759
191

17
18
19
20
21
22
23
24
25
26
27
28
29
50

6,504
2,722
684
429
424
95
469
927
754
6,755
445,974
545,947
455,771 62,005 57,865
546,755 155,638 208,987
2,058,940
25,982
8,587,509 1,450,457 1,426,662 1,846,941 541,407 235,655 1,862,502 616,769 627,128 122,520
650,465
115,256
172,915 58,857 38,046 28/ 415
65,500
157,486 29,805 12,80C
650,551
115,245
65,280
157*469 29,805 12,800
422
172,907 58,854 58,000 W
15,245
2,889
1,794
2,252
390
346
474
1,986
1,786
1,820
245,907
45,739
51,151
25,180
9,356
5,071
70,885 26,178 16,547
5,602
584,558
71,517
86,537 20,449
42,120
7,729
102,026 52,679 21,699 2^/4,015

51
52
53
34
35
36
57
58

1,008,908
5,740,817
401,875
515,976
141,516
16,920
71,218
197,071
8,164
272,421
206
1,876
156,164
29,155

172,858
13,044

504,080
525,422
51,066
65,466
64,056
2,77C
51,494
62,044
1,594
75,65$
19
146
19,53C
782

25,414
1,286

219,600
607,417
90,682
57,825
21,16!
2,942
6,15C
27,495
1,285
42,992
20
157
21,182
1,127

14,700
1,172

144,451 104,622
997,296 85,324
120,457 21,548
58,942 25,474
4,598
10,916
4,172
911
4,811
5,090
20,401
8,082
1,207
246
42,772 22,061
m
20
46
60
10,094
2,707
15,160
269

52,414
2,142

2,629
449

47,272 44,797 57,466
86,640
80,521 1,128,129 278,494 238,407
1.4,759
42,421 26,120 54,844
5,691
99,267 26,569 18,742
1,581
20,66! 12,255
6,100
1,546
83C
1,560
2,187
656
16,901
5,095
5,021
5,589
40,882 24,075 10,505
76
1,763
1,699
492
5,759
49,517 25,356 12,512
4
16
127
1,204
11
188
62
1,626
57,145 12,665 11,415
8,555
186
1,228
1,850

957
119

75,811
855

16,655
5,668

8,300
1,575

2,746 39
2,310 40

Table 5» — Corporation income tax returns with balance sheets, \ / 1948, by majo H i
_______ _ ___ _
Number of returns, assets and liabilities, compiled receipts, compiled deductions, compiled net profit
loss deduction, income tax, compiled net profit less income tax, and dividends paid by type of dividend

__

All
industrial
groups

1
z
3
4
S

Number of returns with balance sheets 50/
536,833
Assets,
Cash 31/
65,756,507
Notes and accounts receivable
85,895,688
Less, Reserve for bad debts
1,298,567
Inventories
48,293,412
Investments, Government obligations 52/
104,819,408
Other investments 33/
84,201,909
Oross capital assets 34/ (eacoept land)
180,561,966
Less, Reserves
64,224,879
Land
9,312,955
Other assets
11,857,616
Total assets 55/
525,136,015
Liabilities,
Accounts payable
26,302,071
Bonds, notes, mortgages payable,
Maturity less than 1 year
12,225,163
Maturity 1 year or more
57,825,532
Other liabilities
232,063,777
Capital stock, preferred
14,957,008
Capital stock* common
76,773,782
Surplus reserves
11,344,695
Surplus and undivided profits 36/
102,262,350
Less, Deficit 37/
8,118,363
Total liabilities 35/
525,156,015
Receipts,
Gross sales 8/
534,987,536
Gross receipts from operations 9/
55,394,243
Interest on Government obligations (less
amortizable bond premium),
Wholly taxable 10/
1,464,506
Subject to surtax only 11/
229,763
Wholly tax-exempt 12/
162,194
Other interest
5,529,044
Rents 15/
2,937,159
Royalties 14/
438,102
Excess of net short-term capital gain overnet
21,227
long-term capital loss 15/
Excess of net long-term capital gain over net
780,620
short-term capital less 15/
Net gain, sales other than capital assets 16/
338,939
Dividends, domestic corporations 17/
2,148,512
Dividends, foreign corporations 18/
374,968
Other receipts
2,622,777
Total compiled receipts 6/
405,429,590
Deductions:
Cost of goods sold 19/
258,169,216
Cost of operations 19/
32,236,448
Compensation of officers
2g/6,594,293
Rent paid on business property
3,461,794
3,785,912
Repairs 20/
Bad debts
699,501
Interest paid
2,696,959
Taxes paid Z \!
7,367,545
Contributions or gifts 22/
256,715
Depreciation
6,200,601
Depletion
1,698,864
Amortization 25/
58,533
3,429,222
Advertising
Amounts contributed under pension
1,143,324
plans, etc. 24/
Net loss, sales other than capital assets 16/
208,440
Other deductions
43,214,383
27/571,181,730
Total compiled deductions
Compiled net profit or net loss (57 less 54)
34,247,860
Net income or deficit 2/ (55 less 27)
54,085,666
194,790
Net operating loss deduction 25/
11,771,279
Inooms tax 3/
22,476,581
Compiled net profit less income tax (55 less 58)
Dividends paid,
9,304,748
Cash and assets other than own stock
1,021,918
Corporation's own stock

6
8
1
0
1
11
2
7

9

13
14
15
16
17
18
19

20
2
21
2
23
24
25
26
27
28
29
50
31
32
S3
34
35
56
57
38
59
40
41
42
43
44
45
46
47
48
49
50
51
52
S3
54
55
56
67
58
59
60
61

For footnotes* see pp* 25-26,

PART I * - ALL RETURNS WITH BALANCE SHEETS
(Money figures in thousands of dollars >

__

Agricultc re. forestry, and !
*ishery
Total
agricul­ Farms
and
ture*
forestry* agricul­ Forestry Fishery
tural
and
fishery
services
6,539

5,973

159,837
148,788
178,272
160,020
2,695
2,557
266,334
256,917
89,721
81,596
148,791
166,445
1,010,489
935,948
387,882
367,505
511,854
295,996
62,548
59,286
1,854,923 1,717,280
167,095

151,646

205

Mining and quarrying
Total
mining
and
quar­
rying

361

8,025

Metal
mining

721

20,681

222

15,382

2,837
1,703
5,472
5,668
2,792
2,788
17,329
16,322
1,812,227 1,734,824

1,670

21,295

110,078

Food and Tobacco
Beverages kindred manufac­
products tures
3,194

10,451

Textilemill
products
§,843

112,121

9,978

5,471

642,592

110,527

18,019
4,442

590
219
91
3,058
15,048
6,902

3,585

Construc­ Total
tion
manufac­
turing

796,135
999,066
23,851
2,090,285
595,105
559,890
5,900,452
1,750,348
82,602
148,594
7,415,953

1,415,799 1,372,429
521,742
298,600

221

1,855

Nonme—
tallic
mining
and
quar­
rying

204

4,072
2,055
17,598
273,068
9,145 1,176,288
17,305
80,823
15,517 2,199
771,697
207,994
2,056
470
218,921
54,705
29,477 14,074 2,507,038
597,626
1,013
1,593
345,166
80,952
36,257 12,114 3,748,115
948,458
20,927
4,222
440,731
98,324
94,746 42,897 9,042,154 2,000,357

693

196

Manufacturing
Crude
petroleum
and natu­
ral gas
pro­
duction

8,072
2,977
971,299
223,966 42,346
249,139
571,913 83,935
523,064 11,778,114
274,935 1,007,814
94,834
13,949
4,303 1,001,995
196,459 40,856 296,831
373,785 94,064 1,894,664 17,S59,865
581,924 1,405,617
431,592
46
11,187
92
924
3,646
3,263
919
2,435
13,655
449,400
8,764
2,941
32,592
4,755
4,682
551,240 161,997 25,001
95,021
210,519 60,902
475,186 50,554,578
946,762 2,778,723 1,509,028
5,895
2,232
894,061
333,825 28,169
166,649
326,008 59,410
97,945
7,547,778
155,685
359,676
12,645
4,094 1,128,890
268,517
13,560
306,658
277,807
560,975 80,621
266,079 11,156,764
795,255
69,274
45,724 28,817 8,296,677 1,815,688 531,666 1,656,742 3,643,540 671,041 1,214,791 71,985,292 1,517,087 5,£29,616
320,640
12,734
7,643 4,152,932 1,105,501 265,429
112,812
757,500 1,723,040 301,462 476,615 52,789,177
481,852 2,278,500
14,099
1,759
127,151
31,029
291,926
2,708
24,101
44,384 24,929
72,155
9,396
2,032,908
71,674
1,722 234,960
1,540
77,301 16,660
36,095
79,976 24,928 149,218
263,652
2,572,851
104,959
16,655
94,746 42,897 9,042,154 2,000,557 553,179 2,048,090 5,684,595 775,953 4,202,812 121,707,575 5,240,255 10,121,167 2,348,511

110,850
104,705
205,292
178,846
107,632
89,916
56,612
54,086
673,957
717,508
95,112
90,506
549,959
501,588
133,117
107,968
1,854,925 1,717,280

107
3,391
13,378
7,159
430

Bitumi­
Anthra­ nous
coal, and
cite
mining lignite
minina

41,455

167,995

274,674 47,941

756,151 11,402,625

589,265

2

64

59
55
58

7,018

7

9

U

54,538

515,948

IS

229,896
435,070
682,387
427,110
1,525,4U
455,499
5,203,456
54,844
7,415,985

14
15
16
17
18
19

25,351 6,417,637 1,165,873 498,754 2,320,111 1,778,851 654,088 2,292,518 191,749,157 5,196,445 50,940,745 2,990,987
57,664 59,058 270,148
18,700 1,060,910
612,778 81,282 6,748,542
125,062
5,650,665
5,000

16
302
272
257
195

5
4
5

50,464
145,112
667,502
291,529
6,273
172,391 26,542
264,544
5,850,501
447,211 1,111,028
94,724
163,035
758,921 78,787
296,561 11,757,077
642,542
646,872
54,504
132,181
179,854 297,528 52,017 968,955 10,615,681
329,801
152,749
699,884
20,205
30,298
74,008
¿¿5,302
78,976 54,739
6,763,113
551,087
454,423
159,113
674,524 26,814,245
456,398 2,287,260
831,129 208,085
97,756
107,806 43,512
89,859
594,492
33,107
15,140
116,130 6,438,526
203,086
878,309 1,408,997 514,265 1,128,722 45,507,420 1,314,978 5,415,001 521,589
21,321
50,706
240,627 29,755
76,541 1,259,615
85,133
US, 590
4,700
535,179 2,048,090 5,684,595 775,953 4,202,812 121,707,573 3,240,235 10,121,167 2,548,311

21,112
1,868

814,518

1
2
6
8
10
12

IS

7,777
358
186
8,771
30,340
58,370
1,556

3,740
294
59
31
70
5
2,737
554
3,462
5,165
1,987 10,555
156
9

281

55,978

1,712

66

8,616

26,944

1,265

17,246

52

1,129
5,425
512
84
712
5,940
577
5
19,600
3,U S
5,290
55
154
42
101,874
58,358 9,516
17,407
34,405
2,188
9,254
713,870
5,802
23,660
2,818
«.
4
576
72
915
50
685
527
255
262,870
22,036
250
695
512
5,309
1,414
54,202
14,488
27,098
5,895
902,904
95,740
50,865
103,380
2,479
52,567 44,836 7,782,297 1,262,015 587,061 2,662,567 2,617,271 753,595 9,198,050 198,260,167 5,276,590 31,291,590 5,006,856

1,741
24,449
3,247
58,351
12,346,059

35
54
35
56
57

1,672

2,085
12,185
14,421
152

81,516
4,596
3,570
157,724
272,456
142,595
4,226

17,859

4,122

19,655

514,740

6,866

104
48
•47
772
5,059

«

1,493
79
299
4,123
22,373
1,521
478

25
24

4,289
451
384
11,809
21,507
4,812
£98

1,790
117

642
54
29
650
2,934
1,287
17

12,000,756
206,754

108
152
4,260
4,599
377
471

•

1,511
97
16
2,765
6,594
30,120

20
2
1
22

1,222

8,615

1,888

12

148
236
7,553
15,966
1,995
769

25
26
27
28
29
50
31

896,344
136,250
38,111
27,488
31,417
2.Ì48
11,056
28,138
973
45,698
2,241
58
8,563
3,149

15,760 19,982 4,074,975
1,325 9,519
703,284
767
1,629
85,974
54
299
59,129
106
115,481
40
5,149
703
307
44,746
1,183
747
193,954
7
26
3,405
459
1,687
253,787
.837
546,511
•
5,747
41
71
5,668
31
35
17,270

697,897 419,896 1,699,975
26,603 41,778 189,538
5,457
5,561
27,602
6,176
2,727
8,732
11,277 11,876
48,053
582
758
964
4,001
2,955
8,516
50,422 12,291
46,995
227
1,096
66,262
29,555 11,128
104,814 15,493
87,511
•
389
246
1,052
1,090
2,554
651
5,851

592,832 1,761,055 144,668,709 5,552,607 26,505,804 2,475,864
46,657 5,555,140
6,925
52,681
950
2,526,575
19,498
315,127
2,440,859
50,855
194,480
9,059
72,541
1,757
3,936
53,044
748,524
13,444
24,699
45,126
2,906,944
2S2.272
40,252
4,292
1,611
11,638
167,712
2,430
17,108
253
4,027
22,464
575,038
65,165
22,902
20,630
82,951
75,997
15,585
3,538,445
617,759
255,639
517
4,777
8,767
5,155
628
118,675
9,662
30,644
124,745
2,785,714
70,465
254,355
2,821
915
22,401
1,055,264
79
9,972
46
1,748
136
1,719
564*081
20,276
1,928,558 144,162
76,851
767
51,769
6,250
9,599
655,675
10,705

9,149,540
128,994
170,196
34,815
147,590
5,407
52,997
172, S H
20,951
145,765
98
59,288
28,100

38
59
40
41
42
45
44
45
45
47
48
49
50
51

1,506
1,853
504,951
294,919
1,596,727 1,528,019
216,500 206,805
206,714
216,595
4,077
4,464
77,602
74,502
158,898
132,503

197
160
11,415
537,179
2,980
7,052
24,496 45,212 6,659,670
8,071
1,624 1,142,627
8,055
1,624 1,142,441
185
6,658
2,521
979
407,931
5,750
645
734,696

858
4,557
1,872
4,049
955
4,563
482
56,569
6,709
48,638 24,147
159,205
472,515 2,285,641
83,265
229,610 75,579
641,770 16,302,504
989,651 547,273 2,355,642 2,106,071 641,055 8,628,752 180,276,151 4,812,594 50,185,671 2,767,915
569,298 17,985,056 465,996 1,105,919
238,941
272,564 39,778 306,725
411,200 112,560
272,294 39,773
506,659
411,184 112,551
258,894
568,999 17,981,666
465,844 1,105,555
1,416
233
870
10,264
964
5,808
5,250
869
59,521
87,988 12,615
111,614
440,727
206,931 6,760,415
187,140
90,501
155,645 42,075
184,376 27,165
562,567 11,224,621
196,111 257,557 70,487
276,856
665,192
148,640

6,784
745,4 U
10,848,547
1,497,512
1,497,276
2,168
571,499
926,015

52
55
54
55
56
57
58
59

291,851
70,479

60
61

932,086
147,094
40,507
27,841
33,191
2,254
12,046
50,048
1,006
47,844
‘5,078
58
8,675
3,215

62,442
4,906

59,878
4,356

661,668

202

2,074

-

490
550

462,760
25,891

202

156,475
-

18,669
45

>864,575
598,915
80,176
17,558
17,596
1,254
25,247
68,661
1,565
116,198
518,492
5,059
1,561
7,447

220

76,566
7,498

174,975
15,475

1,212

36,078
2,875

67,256
57,119

6
21
8

4,616,865
637,150

107,974
16,502

556,744
22,052

88,105
16

»

Table S. - Corporation income tax returns with balance sheets, \J 1948, by major industrial groups - Part I, all returns} Part II, returns with net ineome:
Number of returns, assets and liabilities, compiled receipts, compiled deductions, cospiled net profit or net loss, net income or deficit, net operating
loss deduction, Ineome tax, compiled net profit less income tape, and dividends paid by type of dividend - Continued
PART I. - ALL RETURNS WITH BALANCE SHEETS - Continued
(llonev figures in thousands of dollars)

Apparsi
and
produets
aade
firom
fabrios

bumber
Furniture
and
and
wood
produets, fixtures
excspt
forniture

15,804
5,369
Number of returns with balanoe sheets 50/
Assets!
248,585
595,548
Cash 51/
567,522
704,806
Notes and accounts receivable
18,657
8,582
Lessa Reserve for bad debts
1,106,128
645,648
Inventories
77,174
178,751
Investments, Government obligations 58/
142,747
199,764
Other investments 55/
520,482 1,691,518
Gross capital assets 54/ (except land)
205,445
592,599
Less» Reserves
69,557
22,481
Land
67,882
95,596
Other assets
2,815,148 2,890,558
Total assets 55/
Liabilities<
240,247
467,021
Accounts payable
Bonds, notes, mortgages payable:
205,984
147,885
Maturity less than 1 year
254,746
159,568
Maturity 1 year or moro
267,558
256,475
Other liabilities
142 j 385
64,919
Capital stock, preferred
737,191
672,121
Capital stock, common
71,141
70,509
Surplus reserves
891,070 1,196,158
Surplus and undivided profits 56/
Si',785
69,267
Less: Deficit 57/
2,815,148 2,890,558
Total liabilities 55/
Receipts!
7,930,693 4,265,498
Gross sales 8/
72,792
252,598
Gross receipts from operations 9/
Interest on Government obligations (less
amortizable bond premium)!
1,294
2,180
Wholly taxable 10/
107
88
Subject to surtax only 11/
146
24
Wholly tax-exempt 12/
2,588
1,921
Other interest
5,265
7,554
Rents 15/
4,791
8,450
Royalties 14/
182
51
Excess of net short-term capital gain over
net long-term capital loss 15/
90,949
5,495
Excess of net long-term capital gain over
net short-term capital loss 15/
786
1,541
Net gain, sales other than capital assets j /
4,275
10,155
Dividends, domestic corporations 17/
171
184
Dividends, fereign corporations 18/
25,683
31,169
Other receipts
9,264,^02 4,489,604
Total compiled receipts 6/
Deductions:
6,488,225 3,165,649
Cost of goods sold 19/
174,048
47,490
Cost of operations 19/
36,872
255,824
Compensation of officers
12,586
64,499
Rent paid on business property
41,710
15,763
Repairs 20/
7,698
7,140
Bad debts
14,981
17,028
Interest paid
64,541
67,358
Taxes paid 21/
8,807
2,880
Contributions or gifts 22/
53,797
75,981
Depreciation
87,927
Depletion
101
65
Amortization 25/

Chemicals
’Tinting,
Paper
and
publishing, and allied
and allied products
allied
products industries

2,472

4,117

561,559
127,075
482,584
251,261
7,784
14,201
781,580
566,105
56,599
319,375
527,658
49,075
497,609 5,027,166
203,315 1,285,602
75,809
22,952
109,864
25,883
1,165,658 4,585,392
232,657

120,285

11,586

6,895

Petroleum
and ooal
produots

Rubber
products

Leather
and
produets

597

624

2,877

Stone,
clay,
Primary
metal
and
industries
glass
products

3,935

2,924

518,862 1,185,001
1,000,337 1,256,605
157,958
493,872
165,705
418,000 1,561,228
585,240
297,275
794,827 1,293,005 2,315,299
11,077
55,094
11,862
7,812
52,515
40,052
27,746
575,571 2,503,704
610,202
503,128
526,004 2,205,791 2,286,572
114,194
58,061
224,696 1,008,566
743,892
661,565
279,057
666,558
94,658
204,459
152,754
556,629 1,540,550 2,882,827
594,402 2,289,047 10,552,202
2,180,554 6,565,538 16,084,095 1,144,425
186,156 1,004,092 5,605,924
592,148
773,524 2,721,441 7,846,935
72,758
150,689
546,711
18,926
14,974
120,724
187,652
212,551
59,448
18,545
56,675
228,580
165,845
202,055
4,516,042 10,576,90* 18,142,802 1,998,014 1,360,890 3,147,452 11,499,261
459,788

750,055

1,819,547

162,265

155,800

198,656

1,500,715

Fabricated
metal prod­
ucts, except
ordnance,
machinery,
and trans­
portation
equipment

Hachinery,
except
trappola­
tati on
equipment
and
electrical

8,925

9,274

2,857

991

1,288

45

1,

615,072 1,125,915
902,859 1,676,675
54,772
25,855
1,695,956 5,441,525
285,176
640,970
513,*37
509,562
2,734,159 4,550,778
1,175,264 2,009,688
142,628
115,001
113,557
189,956
5,465,805 10,215,502

555,909
1,055,078
22,660
1,754,690
506,291
785,762
2,054,924
846,735
56,7*1
128,559
5,804,549

529,557
524,419
4,825
955,597
205,576
140,552
1,280,794
635,415
40,062
151,462
2,966,941

889,840
756,581
9,745
1,990,966
1,089,695
525,545
5,789,789
1,754,558
75,148
118,999
7.471.882

52,351
17,542
826
78,667
19,049
12,078
110,650
64,844
2,164
15,289
222,120

2
5
4
5
6
7
8
9
10
11
12

612,557

500,533

970,851

80,958
56,250
86,456
505,880
550,675
117,959
344,447
47,589
848,655
289,852
208,512
51,150
445,758 1,850,545
29,401
16,475
1,165,658 4,385,392’
,

219,005
65,986
75,444
500,685
142,640
17,561
129,605
503,757 1,088,624
429,406
89,541
994,982 2,577,826
385,959
265,501 1,040,450
155,141
111,189
898,335
505,572
959,705
854,104
221,647
78,406
145,005
440,896
278,974
901,148
520,271
856,588 2,862,778
2,145,849 5,259,546
288,834
780,042
111,957
481,245,
144,190
82,148
181,64e
595,055
860,709
595,499 . 485,185 1,249,860 5,899,954
1,711,865 4,079,234 6,571,245
14,517
23,434
55,276
27,691
48,908
68,416
97,415
4,316,042 10,576,903 18,142,802; 1,998,014 1,560,890 ¡3,147,452 11,499,261

176,589
282,021
534,776
749,948
556,156 1,115,744
252,592
548,998
1,277,575 2,198,208
669,192
227,488
2,223,319 5,772,851
90,471
62,825
'5,465,803 110,215,302

2,596,981 5,846,721
16,765
18,180

5,659,886 15,771,910 18,754,169 5,514,063 3,110,175 4,058,502 16,022,773
605,605
10,484
25,928
7,564
84,965
609,628
456,81C

9,107,623 14,424,521
259,224
59,456

702
24
26
782
2,184
402
25

5,855
208
178
6,128
7,342
5,629
111

4,096
482
272
4,957
18,104
11,222
48

6,917
476
596
17,651
14,266
20,721
406

8,641
554
172
11,245
88,918
25,550
186

1 1,154
18
9
1,515
1,852
4,065
2

2,755

13,916

11,251

11,055

39,605

918

Electrioal
machinery
and equip­
ment

Transpor­
tation
equipment,
except
motor
vehicles

Motor
vehicles
and
equipment,
except
electrical

Ordnance
and accès*
corles

516,562

962,816

9,155

IS

100,039
190,250
166,511
685,975
415,294
728,055
193,905
128,274
504,597
1,222,055
*50,023
169,860
1,889,577 1,268,457
67,626
90,438
5,804,549 1 2,966,941

151,096
198,049
642,252
425,165
850,464
854,685
5,482,112
54,757
7.471.882

1,11*
2,232
50,999
20,455
23,494
29,725
105,794
845
,222,120

14
15
16
17
18
19
20
21
22

8,626,696
58,104

2,941,685
781,271

15,505,461
8,556

255,271
179

25
24

6,906
579

25
26
27
28
29
*0
51

827
29
28
1,185
1,991
256
9

2,486
219
117
2,728
4,900
3,144
46

1 11,252
208
167
25,075
18,101
7,955
397

3,321
268
158
S,85S
11,514
4,564
121

| 7,709
52*
412
10,722
22,671
17,214
567

2,541
149
175
10,086
6,196
11,593
204

2,557
*8
*5
5,374
3,256
3,811
44

4,506
4,655
5,908
26

291
57
21
*52
461
77
1

1,664

4,738

15,449

15,895

1

121

12,617

12,502

8,570

5,014

222

32

218
1,113
1,614
11,782
1,262
7,925
15,261
28,780
2,438,294 5,948,451

525
549
972
140
101
938
1,165
6,417
42,948
20,891
1,954
246,593
22,554
124,864
25,217
10,961
9,850
• 58,041
95
2,645
22,555
55,820
15,594
24,270
74,866
60,649
13,219
50,310
6,223,345 14,137,992 19,918,916 5,588,164 5,144,425 4,122,779 16,795,745

1,716
1,308
22,554
22,048
18^948
1 11,935
88,577
51,226
9,292,588 14,867,265

492
22,586
12,079
26,798
8,774,601

1,010
10,268
2,930
28,959
3,757,406

72
59,795
47,248
99,244
15,741,469

S
291
40
659
i235,887

55
54
55
56
57

1,792,498 4,194,507
12,295
6,091
84,780
72,851
21,516
15,009
16,042
148,265
3,647
3,405
17,592
6,569
84,911
30,513
5,276
2,275
23,242;
106,912
4,898
155
53
lì
25,708
21,856
24,472
3,283
971
620
265,171
444,820
2,265,497 5,171,999
172,797
776,432
172,771 1 776,254
895
1, 596 1
70,025 j 292,530
102,77S j 4:85,902

3,835,576 9,490,958 15,525,422 2,469,130 2,566,041 2,775,515 1 % 512,945
447,854
1,568
6,636
15,101
427,803
48,343
249,200
112,441
20,441
65,112
76,415
52,988
214,890
152,580
49,476
120,774
18,156
12,215
45,466
15,151
56,259
105,626
581,498
230,557
22,714
525,509
62.150
52,704
10,716
5,611
14,914
2,435
2,140
18,48!
10,458
73,671
12,686
15,407
42,821
66,509
6,960
18,021
240,651
51,496
57,866
405,488
99,749
75,645
205, 585
2,456
6,451
4,674
2,695
5',629
999
7,295
91,089
314,057
270,614
460,132
55,291
19,410
74,550
em
34
2,359
63,090
32
17,622
871,092
75
261
4
1,520
828
3,261
131
25,675
25,715
76,548
56,841
35,695
54,499
589,275
49,287
12,052
7,391
8,295
27,144
69,259
108,01§
1,136
1,026
4,053
2,904
706
1,713
1,640
351,537
399,977
600,200
255,952
1,487,180 1,499,483
1,001,66<
5,647,53^ 12,465,85" 17,939,349 3,133,191 3,011,992 3,592,429 15,103,363
1,979,567
1,690,382
£54,975
132,453
530,350
575, 81!
1,672,135
254,964
132,405
530,233 1,690,215
575,53£ 1,671,759 1,979,395
2,229
3,67]
766
1,805
3,10'
3,023
430
630,087
202,204
214,932
57,226
605,292
92,255
658,712
323,146 1,060,895
75,207
360, 87£ 1,066,842 1, 320,855
162,718
S|6,339
124,980
*g,167
155,SOS
557^9

6,554,152 10,058,555
55,574
34,955
254,712
220.690
| 34,566
47,287
142,535
251,589
14,461
10,040
21,552
40,910
119,708
215,592
12,256
7,440
221,605
125,995
257
894
275
289
76,174
141,505
62,313
29,158
5,772
5,870
906,339 1,787,999
8,287,380 13,146,971
1,005,208 1,720,294
1,005,050 1,719,882
8,477
3,243
383,113
659,726
622,095 1,060,568

6,355,517
7,729
81,077
55,408
119,568
6,401
28,212
181,212
4,125
119,282
288
67
115,258
83,405
2,456
760,282
7,896,055
878,546
878,371
3,813
338,604
539,942

2,452,069 10,590,592
4,082
594,545
49,757
30,552
25,176
15,725
221,225
71,595
2,247
1,857
18,225
12,591
551,505
59,953
4,166
1,545
172,489
48,954
1,005
69
495
92
78,116
12,150
18,855
14,445j
587
5,2771
724,750
228,668
3,527,661/
229,745)
229,710/
1,688
7,2551
628, SOS
95,402}
194,545/ 1,05«,659

162,884
80
2,365
541
7,437
191
580
5,022
304
3,055

58
59
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56

62,310
9,844
Advertising
4,486
7,670
Amounts contributed under pension plans, etc, 2V
1,747
/
1,552
Net loss, sales other than capital assets
1
784,460
534,300
Other deductions
|7,983,140 3,958,197
Total compiled deductions
531,407
Compiled net profit or net loss (57 less 54) | 275,662
531,261
I 275,658
Net income or deficit 2/(55 less 27)
2,096
j
2,47C
i Net operating lose deduction 25/
193,075
I Income tax 5/
f 119,584
58) 156,07€
Compiled net profit lees Income tax (55 1.
538,534
Dividends paid.
L
ì

54»

LJ

1*70, *789

liabilities.

2X5»804

381,5X1

deficit, net

207,35

97,554]
4. 70SÍ

_
me

2,223
5,483
1
15,547
203,309
32,578
32,557!
36

12,4271
20, 151/

57
58
59

58'

50.4,933
560,878!

Income tax 5/
Compiled net. profit le

ax returns with
liabilities, coi
oinpiled net prof

603,2921
658,712
1,066,845) 1,320,8551

92,255 )
162,718)

57,2261
75,207)

eets, i / 1948, by major
eipts, compiled deduct! ms , compiled n
come tax. and dividends paid by type o

202,204 )
650,0871
528,146) 1,000,2

deficit, net
vidend — Continued

PART I. - ALL RETURNS WITH BALANCE SHEETS - Continued
(Money figures in thousands of dollars^
Major industrial groups 4/ — Continued
Public utilities

Scientific
instruments;
photographic Other
Total
equipmentj
manufac­ public
watches,
utilities
turing
clocks
Number of returns with balance sheets 30/

For footnotes, see pp. 25-26.

1,590

10,218

21,749

16,157

2,932

Electric Other
and gas
public
utilities utilities
1,157

1,503

127,676 303,213 2,875,849 1,877,918
202,967
761,853
33,111
250,236
519,849 2,613,915 1,544,879
428,962
613,594
26,480
7,607
19,818
48,877
3,972
10,095
34,061
749
458,785
865,963 2,058,549 1,105,603
191,708
744,050
17,188
66,422
96,762 1,941,731 1,095,169
424,055
412,072
12,435
134,317
198,768 12,051,531 5,543,350 4,034,371 2,438,273
35,537
576,738 1.111,029 66,574,768 32,799,948 10,334,970 22,415,260 1,024,590
439,446 17,040,443 8,808,656 3,097,633 4,939,193
268,585
194,961
17,010
49,393
467,017
217,950
20,881
208,222
19,964
23,430
75,315 2,210,778 1,464,967
153,500
565,220
27,091
1,378,422 2,761,028 73,704,818 36,829,033 12,689,809 23,185,290 1,000,686
100,693

288,837

2,709,838

1,804,161

488,876

181,353

123,586
6,012,412

52,734

4,032,297

482,042

74,787
1,505,096
1,260,100
81,122
1,494,172
112,592
574,501
38,601
3,641,517
292,886
462,524
24,611
5,498,998
594,221
34,562
285,304
18,183,701 1,466,300

3,550,255

100,731

Food

2,454,857

1,430,309
954,348
1,178,978 1,552,591
1,381,580 2,066,991
535,900
789,578
3,348,631 4,536,778
437,715
629,248
5,104,777 7,646,252
250,742
293,788
16,717,401 20,336,855

7,544

General
merchan­
dise

376,525

6,315

Apparel
and
acces­
sories

619,988

13,920

Furniture
and house
fum i sh­
ines

Automotive
dealers
and
filling
stations
20,074

7,051,558

8,493

Total
retail

648,996
517,193
14,724
1,101,789
97,741
128,375
880,219
219,777
161,704
80,597
5,382,113

2,718,309
3,087,885
3,882,304
1,483,085
9,021,738
1,184,729
14,480,199
639,487
42,270,318

61,227

Retail
Other
whole­
salers

8,585

25,239

11,485
3,594,856

Commis­
Total
wholesale sion
merchants

5,321,610 2,197,526
299,720 1,897,806 2,789,207
330,471
323,022
907,209
89,158
10,717,656 5,741,552
615,973 5,125,579 3,991,371
173,190 1,311,407
431,700
546,253
146,659
363,973
5,078
96,354
11,221
135,438
184,851
14,530
19,717
14,015,772 6,075,417
762,137
140,082 5,935,335 6,673,176
692,769 2,109,176
430,200
1,233,142
422,214
79,686
30,497
489,448
67,234
682,432
28,684
352,043
2,886,600 1,395,247
204,554 1,190,693 1,166,991
503,060
56,864
105,605
148,673
9,860,923 2,776,552
131,349 2,645,003 6,110,877
932,694 2,031,426
504,794
186,568
3,548,835
970,403
41,257
929,146 2,208,914
342,358
786,388 185,764
63,584
236,747
1,106,347
249,663
12,916
753,815
60,644
289,981
32,363
26,413
1,042,076
27,191
375,558
46,950
328,608
592,751
85,091
199,218
61,205
42,270,318 18,183,701 1,466,300 16,717,401 20,336,855 2,054,263 6,820,778 2,150,735 1,309,823

40,721
155,060
862,738
363,669
124,384
358,315
16,370
88,555
238,635 26,124,523 11,967,095 4,146.236 9,560,935
450,257
154,603
277,045 5,146,425 3,323,647
60,114
557,738 1,204,924
80,803
132,958 4,048,314 1,440,425
179,860 2,337,366
90,663
351,507
643,139 21,780,135 9,278,413 6,131,294 6,162,332
208,096
69,038
89,760 1,021,368
514,371
433,820
53,819
19,358
514,580 1,045,822 13,182,255 9,251,137 1,130,557 2,673,337
147,224
22,078
110,228 1,170,776 1,013,334
25,641
115,166
16,635
1,378,422 2,761,028 75,704,818 36,829,033 12,689,809 23,185,290 1,000,686
1,881,551 4,760,269
503,830
364,499
8,394
52,638 27,640,795 17,868,826

391,562

Total
trade

332,447

140,510

325,304

147,720
72,131
114,739
256,019
78,685
158,508
231,424
187,596
455,470
88,482
649,930
185,007
447,242
160,106
207,099
374,734
102,441
108,450
38,680
34,105
371, 519 1,460,951
432,742
332,182
698,595
87,617
71,169
318,089
41,575
36,325
830,326
739,748 2,813,271
598,172 1,324,770
33,526
22,963
19,375
32,548
24,274
2,054,265 6,820,778 2,150,755 1,309,823 3,382,113

4,260 13^ 825,624 64,461,170 2,979,263 61,481,907 56,715,913 11,843,741 14, '715,802 5,189,487 2,177,948 11,795,800
164,701 2,661,662 1,729,953
742,445
720,266
60,990
30,544
304,747
987,508
51,212
65,753

794
122
25
1,255
1,041
1,922
2

1,284
106
65
2,331
7,474
2,367
172

25,197
1,646
707
101,725
381,699
12,488
1,327

14,931
1,552
439
55,422
328,906
9,413
1,234

4,475
20
30
13,593
27,083
1,253
10

5,633
69
152
32,264
24,623
1,563
83

158
5
86
446
1,087
259
g

18,268
835
690
79,586
208,349
14,078
3,696

8,349
309
337
51,089
45,292
9,641
1,600

1,262
52
35
5,754
3,722
1,365
394

7,087
257
302
25,335
41,570
8,276
1,206

8,694
462
248
41,182
143,308
2,283
1,756

388
24
26
1,884
9,563
581
93

3,697
151
71
13,681
61,789
350
42

1,156
40
18
2,025
25,895
140
34

632
20
19
4,246
4,853
34
40

1,057
64
14
9,985
13,276
331
1,019

1,411

8,191

66,470

2,391

79,711

32,252

2,385

29,867

36,825

4,809

4,202

1,925

1,643

11,551

47,045

4,398

12,638

826
128
7,024
6,357
14,070
7,186
388, 598
100,814
3,750
3,000
12,831
5,602
13,187
25,798
127,898
93,414
X, 927, 652 4,871,707 29,272,235 18,898,432

138
205,953
1,529
7,410
3,872,233

393
79,861
5,698
25,001
6,323,976

1,239,401 3,382,102
352,157
256,384
3,283
24,588 18,262,544 12,862,673
37,604
164,402
232,384
178,577
10,606
33,754
770,042
658,597
26,183
42,488
49,649
42,320
1,796
10,873
24,150
8,058
5,407
16,444
854,732
434,009
56,144
67,900 1,669,086
889,475
2,258
5,905
15,892
3,920
29,548
61,292 1,632,675
767,388
2
1,826
33,756
13,465
56
726
19,356
17,806
45,832
72,974
82,732
47,951
15,678
10,765
206,429
28,295

5,283
2,149,075
19,372
65,681
5,019
10,740
119,172
234,417
2,566
331,773
15
253
20,661
112,295

87,6 U
3,176,588
30,659
43,488
1,043
5,181
285,870
528,752
9,286
517,748
20,202
1,294
13,934
65,338

465
4,330
23,248
15,142
242,746
646,579 1,630,213
957,742
1,717,009 4,544,946 25,859,052 17,181,782
210,643
326,761 3,413,183 1,716,650
210,618
326,696 3,412,476 1,716)211
560
5,238
21,292
18,032
79,778
137,472 1,188,606
645,984
130,865
189,289 2,224,574 1,070,666

286
7,648
269,423
389,275
3,346,031 5,183,897
526,202 1,140,079
526,172 1,139,927
966
1,208
135,221
397,604
390,981
742,475

65,094
31,000

76,987
14,663

1,451,93C
38,217

416,718
10,383

400,151
1,952

603,738
25,132

5,879
156
6,976
406
13,139
4,280
850
1,606
4ca
453
528
1,970
49,959
38,862
95,189
10,391
39,588
2,159
1,176
5,769
15,758
7,482
2
43,080
24,800
561
9,441
2
24,239
10,635
700
59
1
2,075 1,048,389
373,874
53,057
520,817
589,003
23,883
169,990
96,141
99,544
71,288
177,594 135,092,296 66,772,905 3,801,087 62,971,818 58,316,409 11,949,491 15,046,592 5,390,551 2,321,286 12,214,508
2,879 105,303,685 56,268,451 2,763,069 53,505,582 41,382,086
74,208 1,504,057
975,724
278,325
697,399
425,490
3,796 2,322,980
974,607
122,436
852,121 1,136,238
2,276 1.312.075
20,991
223,139
202,148 1,009,778
1,267
340,656
2,971
85,775
82,804
225,541
191
205,096
5,464
74,483
69,019
108,618
IS, 681
8,651
230,674
106,590
97,939
101,950
16,442
941,771
15,149
308,104
292,955
553,783
120
65,072
26,056
54,702
2,111
23,945
15,766
653,385
191,609
9,715
181,894
594,496
74
962
16,007
542
13,788
14,330
3
3,071
696
37
659
2,111
195 1,154,737
270,665
19,107
806,709
251,558
501
141,988
48,920
5,172
43,748
86,679
172
15,991
871
4,870
13,775 15,204,370 5,012,062
395,082
147,342 129,411,595 64,586,081 3,649,743
30,252 5,680,703 2,186,824
151,344
30,166 5,680,013 2,186,487
151,309
1,086
24,979
12,274
2)161
9,80C 2,093,557
824,009
55,044
20,452 3,587,146 1,362,815
96,300
11,525
770

1,062,531
197,187

408,660
96,391

34,904
4,649

3,999
4,616,980
60.936.358
2,035,480
2,035,178
10,113
768,965
1,266,515
373,756
91,742

9,731,221
45,128
69,607
96,508
37,709
4,565
11,069
72,674
3,587
66,004
56
72
56,356
11,405

9,788,850 3,453,925 1,383,282
9,252
19,667
35,051
116,664
150,806
95,665
273,357
245,775
56,230
67,194
17,477
8,156
27,435
14,662
12,786
9,296
21,688
8,953
189,001
51,623
25,342
11,182
5,071
2,003
96,478
38,377
14,592
29
43
9
74
409
145
330,691
133,211
65,595
58,060
5,283
1,13#

9,187,372
197,936
340,447
98,919
36,881
17,187
21,259
83,503
7,360
64,874
' 85
701
110,183
4,030

7,560
1,099
613
1,098
524
1,014
8,992,229 1,460,651 2,930,297
989,060
527,752 1,140,322
55,248,932 11,695,689 13,931,278 5,151j167 2,211^398 ll',312;073
3,067,477
253,802 1,115,314
239,584 '109;888
902,435
3,067,229
253,776 1,115,243
239,366
109,869
902,421
10,414
696
885
1,606
987
1,272
1,116,579
97,130
416,411
84,628
323,026
37,935
1,950,898
156,672
698,903
154,756
71,953
579,409
566,204
85,692

53,620
3,667

288,667
11,663

43,336
15,136
5,452 .. W .

78,582
42.460

400

Cash 31/
Notes and accounts receivable
Less: Reserve for bad debts
Inventories
Investments, Government obligations 82/
Other investments 55/
Gross capital assets 34/ (except land)
Less: Reserves
Land
Other assets
Total assets 55/
Liabilities:
Accounts payable
Bonds, notes, mortgages payable:
Maturity less than 1 year
Maturity 1 year or more
Other liabilities
Capital stock, preferred
Capital stock, common
Surplus reserves
Surplus and undivided profits 56/
Less: Deficit 57/
Total liabilities 55/
Receipts*
Gross sales §/
Gross receipts from operations
Interest on Government obligations (less
amortisable bond premium):
Sholly taxable 10/
Subject to surtax only 11/
Wholly tax-exempt 12/
Other interest
Rents 13/
Royalties 14/
Excess of net short-term capital gain over
net long-tem capital loss 15/ .
Excess of net long-term capital gain over
net short-tern capital loss IS/
Net gain, sales other than capital assets 16/
Dividends, domestic corporations 17/
Dividends, foreign corporations 18/
Other receipts
Total compiled receipts 6/
Deduction«:
Cost of good3 sold 19/
Cost of operations 19/
Compensation of officers
Rent paid on business property
Repairs 20/
Bad debts
Interest paid
Taxes paid 21/
Contributions or gifts 22/
Depreciation
Depletion
Amortisation 23/
Advertising
Amounts contributed under pension
plans, etc. 24/
Net loss, sales other than capital assets 16/
Other deductions
Total compiled deductions
Compiled net profit or net loss (37 less 54)
Net income or deficit 2/(55 less 27)
Net operating loss deduction 25/
Income tax 3/
Compiled net profit less income tax (55 less 58)
Dividends paid: '
Cash and assets other than own stock
Corporation’s own stock

Wholesale
Transpor­ Communi­
cation
tation

Table 3« - Corporation income tax returns with balance sheets, \J 1948, by major industrial groups - Part I, all returns; Part II, returns with net inoomet
Number of returns, assets and liabilities, compiled receipts, compiled deductions, compiled net profit or net loss, net income or deficit, net operating
loss deduction, income tax, compiled net profit less ihcome tax, and dividends paid by type of dividend - Continued
PART I. - ALL RETURNS WITH BALANCE SHEETS - Continued
Trade - Continued
Retail - Continued
Building
Eating
mate­
Other
Drug
add
rials
retail
stores
drinking and
trade
plaoes
hard­
ware
Number of returns with balance sheets 30/
4,169
11,383
9,085
Assets x
Cash 3l/
71,073
95,431
110,668
Netes and aocounts receivable
41,277
43,719
329,876
Lesst Reserve for bad debts
953
367
9,624
Inventories
224,580
74,995
489,506
Investments, Government obligations 32/
7,611
16,858
25,549
Other investments 33/
20,604
32,681
57,168
Gross oapital assess 54/ (except land)
178,060
497,244
275,479
Less t Reserves
74,830
189,518
106,469
Land
7,578
46,049
49,017
Other assets
17,764
58,791
20,826
Total assets 35/
492,974
655,883 1,241,996
Liabilities t
Aooounts payable
74,991
99,565
138,591
Bonds, notes, mortgages payables
Maturity less than 1 year
19,532
36,376
73,557
Maturity 1 year or more
62,406
68,290
111,961
Other liabilities
33,046
66,522
85,062
Capital stock, preferred
22,986
22,200
22,369
Capital stock, ocmaon
104,403
180,627
373,634
Surplus reserves
12,421
7,054
18,914
Surplus and undivided profits 36/
190,845
183,356
473,503
Lessi Dafioit 37/
27,656
51,687
16,724
Total liaUTitias 35/
492,974
655,883 1,241,996
Reoeipts t
Gross sales o/
1,390,981 1,846,406 2,726,067
Gross reoeiprtg. from operations 9/
10,415
72,939
22,980
Interest on Government obligations (less
amortisable bond premium) t
Wholly taxable 10/
111
357
487
Subject to surtax only ll/
13
18
15
Wholly tax-exempt 12/
22
8
8
Other interest
400
484
2,781
Rents 13/
4,786
7,576
4,258
Royalties 14/
137
153
468
Excess of net short-term oapital gain over
2
236
80
net long-term oapital loss 15/
Excess of net long-term capital gain over
1,336
2,551
4,596
net short-term oapital loss 15/
Net gain, sales other than oapital assets 16/
82
904
766
Dividends, domestic corporations 17/
2,541
2,042
926
Dividends, foreign corporations 18/
334
85
5
Other reoeipts
11,920
14,322
30,768
Total compiled receipts 6/
1,425,066 1,946,959 2,795,321
Deductions t
Cost of goods sold 19/
954,201 1,044,341 2,071,396
Cost of operations 18/
3,541
41,760
15,392
Compensation of officers
66,713
91,866
-34,128
Rent paid on business property
47,911
87,632
16,065
Repairs 20/
6,899
22,793
8,967
Bad debts
404
766
10,821
Interest paid
2,841
7,305
5,099
Taxes paid 2l/
17,766
55,099
26,257
Contributions or gifts 22/
644
695
1,673
Depreoiation
36,473
12,654
20,171
Depletion
623
Amortisation 23/
63
292
73
Advertising
18,941
12,993
15,491
Amounts contributed under pension
1,476
1,229
1,025
plans, etc. 24/
Net loss, sales other than capital assets 16/
119
1,259
492
Other deductions
278,019
557,435
324,737
Total compiled deductions
1,379,606 1,914,578 2,612,334
1Com piled net profit or net loss (371sss 54)
43,460
32,381
182,987
>lNet income or deficit 2/ (55 less 27)
43,452
32,359
182,979
H Net operating loss deduction 25/
285
2,015
346
Income tax 3/
14,469
17,840
59,900
9| Compiled no€ profit less income tax Q55 less 58)
29,001
14,541
125,079
1 D iv id ends paids
ol C a six and assets other than own stoelc
1
12,001
12,792
26,801

19,656

Total
finance,
insurance,
Trade
real estate,
not
allooable and lessors
of real
proporty
19,395

213,199
334,877
596,756
984,733
23,524
32,463
788.024 1,267,179
43,863
61,262
103,961
334,362
624,393
973,694
240,526
369,518
60,066
121,889
62,078
75,767
2,228,290 5,749,762
347,136

564,404

150,589
258,865
188,454
275,194
232,977
521,141
63,615
119,004
582,225
843,443
36,084
93,157
692,252 1,334,949
65,040
60,395
2,228,290 3,749,762

Major Industrial groups 4/ - Continued
Finance, insurance,
Finance
Credit
agenoies Holding
Baziks
Total
and
other
and other
finance
than
trust
investment
companies
banks
0cmpanies

real estate, and lessors of real property
Insurance carriers and agents
£eourity
and cornmodityexohange
brokers and
dealers

Total
insurance
carriers
and agents

Insuranoe
carriers

Insuranoe
agents
and
brokers

Real estateji
except
Lessors
lessors of of real
real prop­ property,
erty ether except
than
buildings
buildings

1,390

8,093

1,981

6,112

93,800

4,944

1

43,254,055 40,278,176 58,965,706
639,647
562,632
110,190
51,081,115 49,458,605 43,387,285 5,081,643
817,942
219,735
382,419
564,951
287,660
83,813
23,201
357
•
•
10,806
10,806
10,806
92,784,727 69,597,195 68,010,336
147,792
872,020
567,047
55,739,712 16,060,846
784,626 9,094,063
4,746,349
435,811
16,863,014
1,807,906
1,223,050
181,782
357,689
45,385
3,949,447
388,919
185,433
69,962
111,250
22,274
4,466,600
248,665
96,884
52,088
83,829 !
15,866
6,256,049
1,498,681
1,179,684
94,429
193,701
80,867
265,124,212 177,205,031 167,166,301 8,778,229 11,858,231 1,402,270

2,090,359
316,498
2,863
„
22,806,139
38,406,477
532,184
28,732
18,147
3;242,665
67,578,884

1,932,791
•
•

157,568
515,498
2,§55
.
23,801
97,045
74,992
14,061
5,548
39,302
698,840

787,139
1,217,417
15,365

98,382
91,595
1,269

2
3
4
5

511,535
70,858
2,030,875
241,512
11,153,823 3,368,101
3,118,484
413,312
248,676
3,961,112
426,677
68,026
16,746,728 3,795,569

6
7
8
9

140,872

2,868,471

34,035

14,567

•

1,484,254

11,457

525,896

6,621

634,465

22,781,338
38,309,432
457,192
14,671
12,599
5,203,383
66,682,044

523,892

344,419

344,419

- 2,146,552
3,759,721
2,709,706
214,792
349,382
- 1,859,376 1,370,207
13,142,632
3,677,884
368,101
209,876.270 147,876,638 145,994,296
647,385 1,163,849
71,108
2,078,379
1,526,865
91,503
324,550 1,083,852
47,160
13,849,588
8,107,948
3,324,889
662,269 3,823,381
97,419
1,930,523
1,669,570
1,021,421
131,650
500,272
16,327
21,523,988 12,359,548
6,836,830
743,737 4,603,195
155,786
102,638
441,856 1,615,783
3,904,260
2,087,182
26,905
265,124,212 177,206,031 167,166,301 6,778,229 11,858,231 1,402,270

14,005
23,356
60,820,619
38,855
965,936
19,401
6,402,920
250,627
67,378,884

•
60,760,417
17,186
366,896
.
6,274,870
237,324
66,582,044

14,006
23,566
60,202
21,669
99,041
19,401
128,050
13,305
698,640

_

951,704

m

88,094

10
11
12
13

1,006,922
29,088 14
7,928,315 1,613,177 16
1,002,098
176,915 16
561,709
160,950 17
3,356,674 1,419,050 IS
212,182
29,370 19
3,143,578
637,942 20
1,206,454
359,997 21
16,746,728 3,793,669 22

5,029,681
100,686

9,648,541
211,443

61,925
6,579,061

30,114
1,167,142

.
662,892

.
469,095

30,114
80,237

.
74,918

.
4,243,444

m
5,860,148

•
383,296

31,811
1,168,475

•
•

23
24

809
117
62
5,696
11,312
509

210

1,226
64
105
7,316
19,749
2,154
340

1,326,800
221,828
156,713
3,182,522
1,817,027
188,788
8,166

800,688
202*257
121,670
2,079,903
153,896
52,364
4,982

779,357
200,195
116,947
1,685,832
110,448
2,116
1,784

2,766
187
187
294,094
3,788
194
377

12,121
1,224
2,218
96,435
18,241
49,978
2,314

6,444
651
2,218
3,642
1,419
76
507

513,319
19,082
34,417
1,064,596
107,611
266
603

512,838
19,045
34,391
1,062,966
104,999
59
300

481
37
26
1,630
2,512
207
203

10,444
387
532
56,474
1,418,016
4,871
2,466

1,349
102
94
1,549
157,605
131,287
215

26
26
27
28
29
50
31

4,210

32

10,636

212,438

120,863

37,166

11,507

67,688

4,602

8,395

7,369

1,026

75,112

8,068

1,381
1,383
3,009
6,368
6
7,647
85,512
71,147
5,228,635 10,002,982

281,387
805,527
47,101
243,673
15,131,956

77,733
690,052
44,334
92,630
5,518,628

2,643
17,591
200
38,170
3,555,241

4,431
11,558
2,231
27,574
827,989

6,774
553,244
41,654
19,743
961,985

63,985
7,659
249
7,143
173,313

626
186,199
1,906
40,284
6,220,448

212
151,140
1,266
27,724
5,812,467

314
6,069
640
12,560
407,991

262,062
26,542
853
99,915
3,078,057

1,066

3,717,498
59,763
170,342
87,381
19,465
19,997
14,440
52,539
2,487
44,873
117
284
63,270
3,035

40,360
67,189
26/764,722
223,429
158,449
278,340
886,408
717,949
19,794
435,463
42,703
469
96,412
80,107

23,793

22,779
22,752
3,974
1,788
4,097
64,023
14,741
1,772
7,795
6,080
•
1,550
6,399

•
•
34,827
6,160
406

.

47,438
18,664
1,774
62,080
124,583
17,996
1,126
8,620
4
.
18,159
5,039

23,793

77,267
28,698
264,499
530,123
169,556
12,825
79,519
6,447
61,343
60,472

•
•
349,651
48,469
24,730
198,046
333,971
132,010
9,719
61,111
337
39,067
49,501

1,342
1,561
94,153
783,976 1,200,079
6,615,385
5,040,809 9,576,580 27/10,520.322
187,826
426,402
4,611,634
187,764
426,297
4,454,921
2,324
2,291
54,921
65,242
152,969
792,125
122,684
273,433
3,819,509

60,268
1,766,586
3,618,743
1,899,785
1,778,215
6,714
417,740
1,482,045

50,204
1,224,238
2,520,853
1,034,388
917,441
2,071
270,355
764,033

5,919
317,898
627,199
200,790
200,603
2,194
76,174
124,616

5,467
127,782
312,790
649,195
646,977
2,005
66,026
583,169

1,OSS,485
,316

357,924
42,771

82,948

696,179
8,246

30,269

7,673,146
102,823
212,135
79,158
29,340
19,996
22,134
79,884
4,314
67,280
715
264
77,363
6,389

87,687
16,104

1,427,713
66,286

22,779
454,668

of dividend —

—zz:

277
7,648
4,910
208
1,895
26
.
2,667
1,733

26/109,740
33,993
4,602
3,580
3,207
132,316
1,711
27,249
14
.
13,292
16,438

•
26/25.360
21,242
3,913
1,446
1,956
126,053
949
23,658
14
.
8,822
14,449

853
678
743
3,892,820
96,666
3,671,525
157,901 27/4.239,816 27/3,900,129
15,412
1,980,633
1,912,328
13,194
1,946,216
1,877,937
444
30,876
30,282
5,185
131,800
110,625
10,227
1,848,833
1,801,803
7,454 1
472 1

141,630
1,108

33
2,734 34
8 56
10,846 56
314,925 37

4,470
1,989

16,567
44,410
193,952
107,528
122,763
9,447
310,417
588,454
5,034
318,639
738
446
20,677
2,951

»
«
6,362
4,641
2,366
814
42,661
27,523
224
10,256
35,504
23
100
246

38
39
40
41
42
45
44
45
46
47
48
49
50
61

no
221,295
339,686
68,305
68,279
694
21,275
47,050

26,232
922,469
2,490,714
587,343
686,711
16^3671
107,660l
399,3831

6,800
33,510
171,050
143,873
143,779
974
64,925

62
53
54
55
66
67

84,380
12,751
689
2,134
1,252
6,263
762
3,591

1,430

jjB L

,

1
H

iov 1

s t r i a l g r o u p s - Part
_________ ___^ ___ _______ ___ ctiona, compiled net profit o:
less income taoc, ~anci dividends paid toy type of dividend
FART X. - ALL RETURNS WITH BALANCE SHEETS - Continued
( Money figure a In thousands of dollars)

Total
services

43,882
1 Number of returns with balance sheets 50/
Assetst
827,336
Cash 51/
2
804,249
Notes and accounts receivable
3
25,408
4
Less: Reserve for bad debts
545,539
5
Inventories
224,830
Investments, Government obligations 32/
6
765,429
7
Other investments 53/
4,660,645
Qross capital assess 5j/ (except land)
8
9
1,851,106
Lesst Reserves
706,320
10 Land
292,167
11
Other assets
6.950.001
12
Total assets 35/
Liabilitiest
670,437
13 Accounts payable
Bonds, notes, mortgages payable:
364,066
14
Maturity less than 1 year
1,493,067
15
Maturity 1 year or more
16
672,612
Other liabilities
240,217
17
Capital stock, preferred
1,448,745
18
Capital stock, common
211,419
Surplus reserves
19
2,252,757
Surplus and undivided profits 36/
20
403,319
21
Less: Deficit 57/
Total liabilities 55/
22
6.950.001
Receipts t
1,642,897
23
Gross sales 8/
Gross receipts from operations 9/
24
6,705,440
Interest on Government obligations (less
amortizable bond premium):
Wholly taxable 10/
25
5,697
Subject to surtax only 11/
26
178
113
Wholly tax-exempt 12/
27
10,376
Other interest
28
189,040
Rents 13/
29
12,716
Royalties 14/
50
1,276
SI Excess of net short-term cpaital gain over
net long-term capital loss 15/
81>038
Excess of net long-term cpailaL gain over
32
net short-term capital loss 15/
5,951
53
Net gain, sales other than coital assets 16/
27,454
34
Dividends, domestic corporations 17/
4,688
35
Dividends, foreign corporations 15/
36
131,235
Other receipts
Total compiled receipts 6/
37
8,766,099
Deductions:
Cost of goods sold 19/
38
976,966
3,661,752
Cost of operations 15/
39
Compensation of effleers
40
387,476
41
Rent paid on business property
306,367
42
137,133
Repairs 20/
43
16,526
Bad debts
44
Interest paid
69,111
Taxes paid 21/
45
191,107
Contributions or gifts 22/
46
7,998
Depreciation
47
263,785
Depletion
48
199
1,734
Amortization 23/
49
SO
132,513
Advertising
Amounts contributed under pension
28,853
plans, etc. 24/
4,677
Net loss, sales other than capital assets 16/
1,956,714
Other deductions
8,142,911
Total compiled deductions
623,188
Compiled net profit or net loss (57 less 54)
Net income or deficit 2/(55 less 27)
625,075
12,549
Net operating loss deduction 25/
240,702
Income tax 3/
Compiled net profit less income tax (55 less EB) 382,486
Dividends paid:
Cash and assets other than own stock
171,517
Corporation’s own stock
12,875
For footnotes, see pp. 25-26.

Hotels
and
other
lodging
places

¡Personal Business
'services services

Automotive
repair
services
and
garages

Miscella­
neous
repair
Motion
services 9 pictures
hand
trades

Amusement,
except
motion
pictures

Other
Mature
services, of
including business
not
schools
allocable

10,088

8,717

3,573

1,846

4,758

4,505

5,223

3,042

1

134,710
76,987
2,068
44,278
32,965
112,745
,662,135
661,949
316,615
60,577
,776,995

76,682
101,658
2,275
56,094
16,454
49,949
675,190
281,593
41,446
38,547
772.152

185,717
279,203
6,105
46,202
44,622
128,975
517,135
190,496
20,429
60,455
1,086,155

24,754
32,462
537
16,776
2,652
10,601
187,665
60,894
30,290
10,282
254,051

12,067
29,256
536
23,183
1,528
5,352
44,636
17,639
1,911
4,124
101,862

236,035
154,289
7,918
355,410
77,127
381,310
994,240
430,108
209,328
73,261
2/£0,974

89,823
39,455
553
8,547
26,380
42,991
375,955
133,242
68,745
23,497
541,398

67,548
90,958
5,416
17,249
23,102
35,508
203,688
75,185
17,558
21,424
396,434

25,343
63,957
953
15,408
5,473
60,459
97,367
28,442
23,623
16,969
279,204

2
3
4
5
6
7
8
9
10
11
12

96,306

76,100

5,172

196,989

27,297

18,462

154,724

51,217

49,342

35,324

13

46,096
90,259
42,665
103,506
683,724
106,408
67,088
157,916
126,752
45,327
50,063
71,711
252,101
315,975 . 223,581
28,742
6,594
38,472
318,477
257,722
467,858
43,019
114,060
38,069
772.152 1,086,135
,776,995

22,185
66,039
24,423
8,550
51,556
3,236
68,427
17,660
254,051

7,224
8,861
13,221
1,157
28,220
1,091
50,132
6,506
101,862

105,203
390,251
172,686
40,996
327,815
100,183
817,557
86,441
2/320,974

31,695
93,557
54,37C
16,677
153,761
11,965
170,689
42,534
541,395

20,743
40,721
56,156
25,736
115,736
21,133
121,897
55,030
396,434

21,586
42,307
25,225
14,361
160,261
3,722
88,955
110,517
279,204

14
15
16
17
18
19
20
21
22

206,522
1,676,402

153,160
171,190

73,671
125,888
114,487 1^05,928

74,715
544,08C

93,774
506,866

78,149
25,426

23
24

7S2
79
26
1,137
18,804
3,720
159

122
3
-

•

260
14,488
67
310

52
405
70
2

1,110
23
6
5,113
38,079
5,550
102

404
IS
!
52S
8,825
2,275
84

582
21
46
1,016
2,870
756
68

65
22
9
826
2,517
389
72

25
26
27
28
29
30
31

6,332

2,025

1,131

1,909

32

439
15,989
•
3,747
1,272
42,909
242,468 1/398,998

1,127
1,77!
S
13,71#
649,561

462
988
113
12,617
621,110

586
1,098
8
3,407
114,283

33
34
35
36
37

42,645
268,59C
24,85!
25,335
11,40!
1,525
4,904
22,93!
l,67Sj
23,92]
121
185
11,943
1,211

55,837
228,523
52,234
17,606
5,728
2,115
2,917
9,980
464
11,731
4
60
10,872
.1,760

59,257
8,833
6,262
1,543
1,285
636
1,720
2,236
98
3,203
134
10
644
190

38
59
40
41
42
43
44
45
46
47
48
49
50
51

689
147,832
589,766
59,795
59,79C
1,667
25,935
33,858

525
182,815
583,171
37,939
37,893
1,717
15,776
22,163

1,064
21,497
108,592
5,691
5,682
362
3,407
2,284

52
53
54
55
56
§7
58
59

16,553
5,647

8,252
1,373

1,754
2,287

60
61

395,997
521,170
852,046 1,034,441
646
19

12
1,796
101,885
213
492

22

2,657

4,750

8,373

165

1,181
683
3,334
1,862
37
20
14,444
8,618
,502,862 1,446,902

1,243
3,398
769
31,082
1,948,823

718
103

98
7

212,965
591,753
87,330
36,354
20,571
2,889
5,976
26,588
1,253
41,445
19
153
20,634
1,117

140,065
985,676
117,198
57,987
10,754
4,092
4,701
19,841
1,189
42,199
19
57
9,733
14,999

99,376
82,158
20,543
24,462
4,442
867
2,989
7,751
239
21,072
45
2,622
264

84,420 45,950
79,008 1/108,547
14,115
41,482
5,558
97,670
20,244
1,526
1,523
818
647 16,570
5,488 40,035
76
1,752
5,660 48,264
16
11
1,079
1,586
56,410
186
8,548

606
309
1,898
532,573
424,005
432,426
1 389,212 1,582,226 1,812,822
64,676
136,001
113,650
64.656
135,975
113,638
1,673
2,822
2,145
42,737
22.657
50,231
70,913
42,019
85,770

324
59,417
826,571
28,804
28,804
350
8,974
19,830

84
242
36,410 341,256
229,573 1,829,568
12,895 169,430
12,895 169,424
336
1,839
5,017
69,575
7,878 100,055

5,604

295,709
517,497
29,724
63,420
62,464
2,694
80,407
60,489
1,350
71,493
14
144
18,715
768

23,041
1,151

14,547
1,160

32,245
2,142

•

6,581
355,375

2,588
448

934
119

73,357
835

TabIs 5. - Corporation income tax returns with balance sheets, 1/ 1946, by Major Industrial groups - Part I, all returns; Part II, returns Kith nst income:
Number of returns, assets and liabilities, compiled receipts, cospiled deductions, compiled not profit or net loss, net incone or deficit, net operating
loss deduction, incone tax, cospiled net profit less income tax, and dividends paid by type of dividend - Continued
PART II, - RETURNS WITH SET MOOSE 2/

All
industrial
groups

570,056

Number of returns with balance sheets 50/
Assets:
Cash 51/
Notes and accounts receivable
Less: Reserve for bad debts
Inventories
Investments, Government .obligations 52/
Other investments 55/
Gross capital asseTs 34/ (except land)
Less: Reserves
Land
Other assets
Total assets 55/
Liabilities:
Accounts payable
Bonds, notes, mortgages payable;
Maturity less than 1 year
Maturity 1 year or more
Other liabilities
Capital stock, preferred
Capital stock, common
Surplus reserves
Surplus and undivided profits 56/
Less; Deficit 57/
Total liabilities 55/
Receipts:
Gross sales 3/
Gross receipts from operations 9/
Interest on Government obligations
(less amortisable bond premium): '
Wholly taxable 10/
Subject to surtax only 11/
Wholly tax-exempt 12/
Other interest
Rents 15/
Royalties 14/
Excess of net short-term capital gain over
net long-term capital loss 15/
Exoess of net long-term capital gain over
net short-term capital loss 15/
Dividends, domestic corporations 17/
Dividends, foreign corporations 18/
Other receipts
Total compiled receipts 8/
Deductions:
Coat of goods sold 19/
Cost of operations 19/
Compensation of officers
Rent paid on business proparty
Repairs 20/
Bad debts
Interest paid
Taxes paid 21/
Contributions or gifts 22/
Depreciation
Depletion
Amortisation 25/
Advertising
Amounts contributed under psnsien plans,
ate. 24/
Net loss f sales other than capital asset
Other deductions
54}
Total compiled deductions
55|ccapiled net profit (57 less 54)
5s|Net income 2f (55 less 27)
5?}Nnt operating ices deduction 25/
58}lncG3E8 tax 5/
591 Compiled net profit lees Income tax
l (5S lees S3)
IDivideids paid.*
SO l CRflh and. assets other than oem stock
61j Corporation'« can stock________________

Agriculture, forestry, and fishery
Total
agricul­ Faroe
and
ture,
forestry, agricul­ Forestry Fishery
and
tural
fishery services
4,051

5,754

154,171
65,752,953
145,048
142,874 128,536
61,882,986
1,208
1^198^508
1^530
225,103
229,200
44,714,108
85,585
103,243,251
77,413
113,724
81,431,625
124,350
824,924
773,870
165,981,295
511,447
59,944,007
826,150
226,852
259,650
7,828,102
51,616
48,976
10,584,852
498^256^655 1,515'S27 1,415,990
25,025,650

120,870

110,484

150

167

Total
mining
and
quar­
rying
5,115

Metal
mining

215

215,214
923,690
6,655
2,192
915,626
181,049
2,872
11,466
10,075
546
55
89
155,349
1,631
514,812
4,466
351,355
886,676
5,864
2,108
249,521
7,986
2,620 1,071,865
54.532 16,522 7,160,109 1,469,180
929,468
4,275 3,678,771
10,428
20,107
99,852
11,577
1,201
56,522
1,245
188,050
1,395
75,454 26,083 8,069,832 1,746,283
7,545

2,841

518,512

88,968

12,137
185,587
56,456
933,715
695,254 185,445
47,530
187,165
449,584
1,949,107
316,456
75,812
865,455
5,507,145
222,907
31,100
6,069,852 1,746,283

Mining end quarry]£6_____________
NonmeCrude
Bitumi­ petroleum tallic
and natu­ alwing Construc­ Total
Anthra­ nous
manufac­
tion
and
coal and ral gas
cite
turing
aritring lignite
quarpro­
■Hwfug
duction
114

1,309

2,354

1,125

15,185

71,282

Beverages

1,705

Food and Tobacco
kindred
manufac­
products tures
6,672

952,
254,758
490,074 11,542,079
344,517 80,887
241,400
41,672
550,551 1,198,
524,535 87,681 1,700,646 16,472,008
282,736
57,625
29,
7,661
415,962
11,404
2,105
3,423
3,102
899
848,699 2,405,
405,405 28,417,792
87,728
193,178 56,847
25,712
151,585
550,:
7,459,965
98,706
524,026 58,654
164,782
27,859
695,
267,194
235,947 10,756,551
531,596 76,726
111,472
302,548
515,057 1,506,914 3,085,725 585,253 1,048,252 68,266,775 1,257,674 4,774,
584,584 2,045,
416,659 51,411,975
706,952 1,508,427 276,208
257,716
252,
56,641
1,876,895
60,957
19,351
37,899 19,944
2,551
85,481
221,
2,274,750
129,727
33,097
62,524 19,842
16,065
8,754,
2,859,956
115,058,654
3,734,651
687,521
5,190,471
1,928,179
517,378
53,912

150,311

207,516

37,605

119

4,056

93,520
427,529
2,846
1,496,498
12,654
•67,687
512,756
110,517
9,004
15,556
2,521,581

774,556
951,926
22,645
1,984,849
587,880
541,526
5,688,444
1,646,609
76,955
153,995
7,070,657

51,755

462,255

496,695
286,270
89,656
5,075,061
659,665
826,498
581,550
10,650,540
595,876
151,S54
506,412
10,154,866
218,085
605,889
155,992
6,579,666
446,990
550,794 2,008,425
24,996,207
52,926
518,780
85,719
6,256,610
514,499
45,545,794 1,210,081 5,059,529
225
55,290
56,195
570,429
115,058,654 2,859,956 8,754,545 2,521,581

195,185
596,607
659,870
406,543
1,406,788
447,898
3,114,674
16,967
7,070,657

644,495 10,590,519

204,811
105,874 19,655
43,246
4,695
217,078
152,827
596,524 57,321
91,085
875,033
267,829 43,711
168,460
29,811
61,207
62,480 29,563
27,482
2o,no
569,483
699,765 172,285
492,631
164,844
109,488
92,745 59,999
95,106
14,794
853,633 1,289,982 298,865 1,070,769
201,212
17,715
85,017 152,242 11,465
13,085
517,378 1,928,179 3,190,471 687,521 5,754,651

Textilemill
products

555,927

678,145

73,512
77,815
9,944,691
123,072
49^748',246 159,872
77,066
227,015,777
91,560
28,596
26,750
13^661^568
69',6Q5jl47
530,224
557,102
87,781
10,765,524
90,259
431,988
465,915
97,410,524
48,897
2,916,252
58,260
498^256^655 1,515,527 1,413,990

5,457
864
13,284
3,516
1,544
12,750
1,645
203
19,589
7,289
953
1,525
9,247
24,668
10,417
946
73,454 26,063

510,249,156 1,278,502 1,245,620
50,558,296
285,218
248,122

15,475 17,207 8,047,144 1,095,640 446,830 2,215,629 1,665,455 823,610 1,988,288 178,464,759 4,715,120 25,689,548 2,861,208 11,423,996
190,582
90,469
4,801
14,205
5,555,091
556,797 69,680 6,245,135
82,721 48,542 215,746
905,486
5,774 11,522

1,444,256
'227^585
156,547
3,451,821
2,572,624
416,546
18,526

625
210
85
5,000
11,158
6,791
585

527
208
67
2,686
10,862
6,545
178

65
•
16
299
224
246
194

35
2
•
15
52
13

7,590
552
185
7,920
28,048
54,898
.1,529

5,694
290
28
37
5
70
2,368
529
3,284
5,089
1,872 10,457
9
156

1,778
116
65
2,065
11,183
13,779
117

1,195
97
16
2,549
5,718
27,549
1,031

638
54
29
611
2,774
1 ,2m
16

1,453
86
248
3,721
19,077
1,419
382

79,815
4,475
5,278
151,597
252,525
156,615
5,520

1,762
85
151
4,091
5,769
555
450

4,085
457
572
3X3,810
16,849
4,602
548

742,710

19,682

12,532

6,861

269

51,755

1,515

1,687

6,462

16,425

3,688

17,747

299,709

7,764

24,922

1,182
280,615
2,286
4,904
2,129,364
4,730
2,783
371,925
2,787
15,957
13,062
2,554,271
574,954,542 1,607,528 1,549,104

5,210
1,104
154
20 101,402
.
912
4
47,475
629
246
29,045 29,181 7,235,686

6,726
146
252
7,552
14,956
1,959
725
1,157

16,457

18
1,045
11,185
2,443
260
2,260
448
194
48
27,672
2,816
5,756
710,652
9,052
2,184
34,099
58,265
9,514
17,540
225
21,254
527
260,904
677
234
72
SO
576
2,512
87,779
26,550
852,279
88,169
5,479
23,039
13,551
4,284
1,122
1,184,674 524,110 2,500,344 2,316,244 710,514 8,877,855 184,526,564 4,779,574| 25,980,275 2,976,597

997
24,318
3,24?
54,456
11,746,109

570,828 1,516,687 155,IOC,654 5,055,095 21,423,159 ,451,302
881
34,522
5,266
2,101,588
39,295 5,115,329
162,552
3,099
40,727
17,924 278,591 2,114,681
1,574
59,816
10,618
645,147
27,877
5,510
4,219
219.929
55,810
2,806,628
89,255
22,479
12,095
251
1,650
125,978
8,860
1,887
22,484
43,801
16,207
501,589
17,738
5,286
75,858
229,800
547,842
5,511,049
74,114
14,681
627
8,679
117,951
5,302
517
4,716
9,595
216,580
55,015
2,590,279
107,198
27,142
874
2,571
1,185 1,046,051
22,039
6
194
51
7,965
95
13
76,524
556.929
1,799,085 126,085
17,542
1,548
6,250
47,905
10,149!
642,875
745
9,806

8,655,441
116,157
151,579
29,286
142,117
4,800
29,090
164,856
20,395
155,911

791,579
99,920
50,848
25,209
28,100
1,512
8,067
24,452
92?
56,658
* m
16
6,706
2,891

15,660 12,606 3,795,050
587,550
1,065
5,089
541
1,148
75,181
55
53,018
126
805
102,580
71
3,694
20
18
53,666
615
174
454 178,107
978
25
5,555
7
225,116
£35
885
•
565
514,569
am
•
5,577
5,272
51
40
?
17,012
29

648,725
22,856
4,604
5,802
9,096
502
2,886
44,812
202
25,945
99,466
182
238
2,524

789,445
372,855 1,615,17?
348,197
32,705
144,497
24,947
24,918
2,790
18,875
2,561
7,470
43,944
15,516
11,545
855
844
508
17,562
2,783
7,344
83,466
43,907
11,241
1,356
1,079
219
99,625
10,177
60,227
84,941
294,788
13,335
172
3,010
1,045 i
1,017
1.424
7,342
5,751
650

662
642
4
102,685
|
58,819,782
261,050
268,110
27/559.006,819 1,567,106 1,520,679
228,4X5
j
55,947,525 .240,222
228,538
|
55,790,876
240,159
4,077
4*464
194-79C
74,502
77,602
11*771*278
2-4,176,244
154*125
162,62C

2,959
4
16
452,666
2,515
4,545
20,43.5 26,012 6,030,960
8,626
5,169 l;204,738
5,169 1,204,551
8,312
6,658
195
202
979
407,951
2,521
796,805
6,507
£,190

373
37,095
903,108
£81,566
281*496
1*416
87,988
195,578

5,110
5,067
1,3m
25,203
279
912
546
811
950
80,075
687,619
185,815 66,684 545*169 14,882,822! 585,558! 1,955,046
143,966
19*106
4,765,728
’’ac "9a 2,755,555 10,205,404
482,045 ¡2,185.657 1,867,583 592,557 7,764,567 165,768,799 4,274,807 nA
----504,767 1,214,547 ! 240,864 1,540,705
615,488 18,759,5651
448,361 117,957
42,085 1 514,487
240,817 1,540,475
504,616 1,214,175
615,240 18,766,287
448,645 117,928
314,422
42,060
2,168
5,809
964
10*264
59,521
255 i
869
870
3*250
571,499
440,727
90,501
187,140
6,760,415
206,951
12*812
111 .,6X4 155,645 42,075
969,206
150,565
517,687
775,820
406,557 11,999,150
202,875
295,018 75*884
29*482

456,see

155,801

237,119,155
28,997,098
26/5,745,181
5,021,687
5,539,248
598,190
2,557,527
j
I
i
I

253,594
5,595,404
1,655,169
34,004
3,144,263
1,112,044

9.£07.7751
1,006,56

817,845
106,072
52,558
25,570
28,974
1.548
6,854
25,864
959
57,804
2.5SS
16
6,777
2,927

61-572 !
i

58,870

8,033

487
560

X8.6S6

75,476

£4,638

one tax, and dlvl den els paid by type of divide rad — O
PART II- - RETURNS WITH NET INCOME 2/ - Continued

170,649
14*802

55,966

66,502

92
56,985
27,686

see

4 5 6 ,s e e I

1.QÛ6.66?

1 5 5 ,8 0 3 .

1 8 ,6 8 6 1

of dividend —
PART XI. - RETURNS WITH NET INCOME 2/ - Continued

Apparel
and
products
mads from
fabrics

Number of returns with balance sheets SO/
Assets:
Cash 51/
Notes and accounts receivable
Less: Reserve far bad debts
Inventories
Investments, Government obligations 88/
Other investments 55/
Qross capital assess 54/ (except land)
Lass: Reserves
Land
Other assets
Total assets 55/
liabilities:
Accounts payable
Bonds, notes, mortgages payable:
Maturity less than 1 year
Maturity 1 year or more
Other liabilities
Capital stock, preferred
Capital stock, common
Surplus reserves
Surplus and undivided profits 56/
Less: Deficit 57/
Total liabilities 55/
Receipts:
Gross sales 8/
Gross receipts from operations 9/
Interest on Government obligations
(less amortizable bond premium):
Wholly taxable 10/
Subject to surtax only 11/
Wholly tax-exempt 12/
Other interest
Rents 15/
Royalties 14/
Excess of net short-term capital gain over
net long-term capital loss 15/
Excess of net long-term capilaL gain over
net short-term capital loss 15/
Net gain, sales other than capital assets 1
Dividends, domestic corporations 17/
Dividends, foreign corporations lly
Other receipts
Total compiled receipts 6/
Deductions:

8,551

Paper
Lxudber
Printing,
and wood Furniture and
publish­
allied
products, and
ing, and
fixtures products allied
except
furniture
.indus­
tries
5,662

2,658

'

1,866

8,555

Chemicals
and
allied
products

4,155

Petroleum Rubber
and coal products
products

489

485

Fabrlcatad métal Machinery,
Products, except
transpor­
except
ordnance, tation
machiner^ equipment
and trans­ and:
portation electrical
equipment
8,225
8,115
6,155

Stone,
clay,
Primary
Leather
metal
and
and
industries
products glasa
Products

1,698

" Ì ,7 7 6

~

S U , 885 1,185,789
976,576 1,842,839
154,955
141,487
119,451
851,655
478,506
549,906
856,188
401,588 1,585,531
576,440
858,050
789,781 1,841,658 8,898,719
596,545
589,781
804,244
457,999
34,434
11,567
10,747
58,055
6,905
84,557
51,300
15,989
7,661
6,687
13,346
551,849 8,268,880
487,481 8,118,682 8,858,703
597,816
456,600
950,874
748,741
577,556
306,458
113,611
882,860 1,004,589
815,787
661,499
56,888
870,150
740,916
178,030
55,858
71,589
658,591
79,834
198,812
514,581
550,545 1,581,680 8,878,785
151,590
184,475
187,015
44,636
533,358 8,171,056 10,808,619
416,831 8,899,550 8,051,551 6,150,967 15,841,478 1,108,482
424,888 1,583,819
578,654
161,784
969,391 5,553,165
758,877 2,648,555 7,718,050
169,688
545,481
174,737 1,852,568
185,569
12,959
67,636
69,834
541,785
16,886
17,895
176,750
19,895
60,988
114,091
803,539
89,140
53,669
18,785
148,985
177,077
881,867
16,897
49,557
84,584
104,708
8,580,458 8,618,571 1,008,098 4,810,781 4,047,974 10,817,414 17,958,825 1,945,578 1,178,945 8,998,557 U , 824,988
570,410

188,581

91,689

809,169

591,053

680,598

1,769,365

158,375

188,867

103,451
864,988
151,786
14,(94
44,407
155,964
54,751
65,349
110,988
479,139
422,065
74,460
173,339
339,818
938,870 8,538,966
111,855
59,840
934,931
345,197
462,183
876,997
151,780
100,140
884,438
251,458
107,357
876,843
434,914
220,385
60,732
55,414
39,479
334,539
861,187
181,504
861,612
876,890
715,751 2,014,448 5,816,818
664,877
808,836
585,919
830,090
77,044
142,609
591,845
845,900
176,487
68,555
805,608
67,598
89,500
S74.987
440,196
417,781 1,778,465 1,637,447 3,991,950 6,581,041
811,557 1,146,658
10,007
8,715
11,915
88,894
52,807
6,975
59,863
4,759
7,875
8,380,458 8,618,571 1,008,098 4,810,781 4,047,974 10,817,414 17,958,885 1,945,578 1,178,943

180,151

1,872,811

1,598

rranspor­
tatiou
equip­
ment,
except .
motor
vehicles
550

- ss fy m
500,042
1,098,879
551,840
470,059
856,418 1,603,518
980,62e
51,567
4,32e
24,067
19,583
1,498,177 5,885,882 1,648,969
820,546
882,891
651,147 : 504,274
195,286
125,494
299,948
490,862
749,908
8,558,181 4,277,576 1,921,691 1,149,206
1,105,595 1,898,832
795,192
575,896
55,624
53,619
106,150
134,212
113,467
95,893
166,586
134,502
$,140,855 9,756,657 5,489,819 2,648,744
449,865

138,597
800,648
255,93«
878,851 1,063,145
874,017
254,649 1,089,830
534,784
156,887
883,759
812,346
806,563 8,811,309 1,170,757
477,907
110,388
884,087
1,196,565 3,651,869 8,151,197
5,084
18,611
14,157
8,998,557 11,584,988 5,140,853

904,049

565,438

274,414

146,133
167*703
2iS,689
132,684
,673,971
648,518
362,341
1,069,406
690,425
119,367
173,322
521,890
460,559
2,052,076 1,138,203
342,175
143,555
651,991
5,648,229 1,791,516 1,141,935
53,814
20,644
5,909
9,756,657 5,489,819 2,648,744

Motor
vehicle3
and
equipment,
except
electrical
847

Ordnance
and
accesso­
ries

25

680,929 80,064
780,757 13,555
8,?6£
809
1,929,853 74,585
1,088,712 13,859
515,444 U ,S 3 1
3,721,290 95,948
1,706,275 57,570
71,S9C
2,058
115,151 13,769
7,518,489 197,090
9 40,&65

8,080

507
120,400
865
171,426
631,512 29,087
419,952 20,441
802,523 17,005
816,401 29,241
3,418,229 92,355
2 ,U 7
449
7,318,409 197,090

6,779,141 3,889,168 2,106,477 5,587,937 5,851,088 15,836,386 18,531,578 5,233,788 8,699,411 5,889,693 15,778,587 8,678,557 15,865,018 8,205,576 2,557,834 13,294,550 217,445
7,055
175
4,836
81,778
600,882
49,051
226,225
52,895
704,262
606,875
588,485
75,659
6,511
18,855
15,806
171,718
61,510

/

1,156
94
84
1,716
4,478
8,405
83

8,158
83
141
8,162
6,682
4,718
171

678
84
85
669
1,685
594
16

5,742
808
178
6,047
6,884
5,594
111

5,944
461
888
4,679
16,798
8,503
40

6,859
478
394
17,381
18,036
80,468
356

8,639
554
178
10,954
88,823
25,457
184

1,134
18
9
1,892
1,743
4,059
2

788
29
28
1,103
1,615
827
8

2,453
818
117
8,662
4,401
3,076
32

11,191
807
167
84,974
17,860
7,947
197

5,866
266
158
5,535
10,558
4,187
109

7,576
523
411
10,233
21,288
16,736
ISO

2,275
ue
175
9,408
5,581
10,631
182

2,212
38
35
2,517
2,415
3,667
43

6,900
876
121
3,904
4,466j
5,893
24

244
25
12
332
459
67

8,619

89,740

8,497

15,668

10,830

10,464

59,478

640

1,349

4,621

15,818

lSylSl

11,170

15,860

6,851

2,847

222

433
38
184
211
586
964
402
62
46
578
929
972
1,141
144
612
509
10,184
59,787
291
6,359
42,956
21,918
22,17:5 ! 22,246
124,444
246,565
20,891
1,830
82,139
11,625
4,198
10,089
1,398
47,172
U , 935
18,798
2,889
40
25,217
93
10,958
9,850
56,041
11,909
7,925
22,509
184
5
1,862
8,400
44747,561
85,394
25,919
13,064
25,408
34,456
22,263
98,161
75,911
12,977
87,417
46,057
57,618
88,145
27,187
11,068
6,996,176 4,094,873 8,158,590 5,6)35,512 5,756,150 15,585,638 19,691,552 3,306,545 2,724,419 3,969,954 16,538,683 8,840,364 14,284,661 8,339,551 3,519,297 13,529,296 219,762

5,451,905 8,838,584 1,549,116 3,976,485 3,546,616 9,072,092 13,532,841 2,403,669 8,802,324 2,649,915 18,893,374
Cost of goods sold 19/
11,785
445,644
426,065
1,227
2,802
40,098
7,857
39,695
808,810
126,709
5,130
Cost of operations 19/
70,434
17,994
104,883
51,216
31,430
76,941
195,051
134,620
203,799
76,206
61,830
Condensation of officers
10,954
47,975
12,551
15,126
38,528
119,501
47,563
48,155
10,286
18,669
11,109
Rent paid on business property
21,014
103,188
577,03C
827,179
319,529
60,421
30,753
14,518
144,658
12,918
37,440
Repairs 20/
5,123
10,068
12,551
2,284
1,326
15,467
5,654
8,768
3,158
9,202
5,108
Bad debts
5,074
U ,0 4 C
78,156
65,178
12,889
15,633
59,538
11,559
4,674
16,058
18,011
Interest poLd
55,126
237,005
402,786
96,785
26,911
174,269
59,145
81,904
70,580
26,289
56,128
Taxes paid 21/
2,442
6,422
2,674
4,067
5,598
990
2,847
7,248
2,841
5,259
8,700
Contributions or gifts 22/
50,987
15,617
508,029
85,061
260,206
452,838
69,076
18,951
101,565
85,992
65,300
Depreciation
34
62,998
865,313
2 , SOC
52
17,606
86,282
143
4,842
Depletion
1,307
6É
3,261
260
187
28
9
88
810
79
Amortization 23/
34,808
75,884
36,118
82,166
24,571
374,217
19,098
28,220
30,510
8,929
53,380
Advertising
7,323
•8,124
11,626
48,940
26,475
68,290
107,470
3,111
24,273
6,962
4,256
Amounts contributed under pension
plans, etc. 24/
174
1.475
2,502
378
715
1,650
1,048
679
195
556
550
Net loss, sales other than capital assets 16
578,623
540,648
194,512
378,546
887,949 1,404,971 1,474,475
222,382
413,512
641,934
289,958
Other deductions
6.653.544 3.536.303 1.944.285 4.895.367 5,143,177 11,868,668 17.694.720 3.044.554 2.566.672 3.421.850 14.831,766
Total compiled deductions
262,185
157,747
548,106 1,706,91S
612,953 1,716,970 1,996,612
194,305
790,145
342,632
558,570
Compiled net profit (37 less 54)
157,719
547,987 4,706,752
262,180
789,967
612,731 1,716,576 1,996,440
558,429
194,280
342,608
Net income 2/ (55 less 27)
5,671
45C
766
1,808
2,229
895
•3,107
5,023
2,470
2,096
1,598
Net operating loss deduction 25/
92,255
202,204
650,087
214,933
658,718
57,226
605,292
119,584
193,075
70,025
292,530
Income tax 5/
Ccapiled net profit less income tax (55 less SB)
223,048
365,497
124,280
497,615
169,934
100,521
398,020 1,111,678 1,33?,900
345,90C 1,076,852
Dividends paid:
57,986
98,158
54,160
170,176
154,038
Cash and assets other than own stock
535,595
708,107
65,716
41.245
124.648
364,661
12,98C
59,694
17,741
2,186
5,626
9,685
10,608
168,672
35,435
Corporations's can stock
26,574
12,373

For footnotes, see pp. 25-26.

Electri­
cal
machinery
and
equipment

6,197,348 9,609,690 5,997,725 2,057,596 10,207,782 150,547
6,163
26,383
552,129
3,294
80
87,538
1,923
25,158
45,120
198,478
226,081
67,938
296
28,513
13,935
19,416
28,604
41,618
218,432
6,728
245,824
115,498
67,135
138,341
4 ,U S
1,178
1,681
185
11,725
8,561
335
55,641
24,573
9,159
16,218
17,759
4,547
347,958
173,595
54,416
204,053
112,699
1,534
4,151
304
7,590
4,103
12,199
2,664
168,445
109,939
43,553
114,669
205,788
1,003
59
889
256
89
460
S3
23i
210
73,042
109,003
9,955
2,152
70,098
133,566
13,002
18,299
3,483
82,998
61,710
28,783
479
229
291
2.752
1,179
202,937
693,873 13,606
692,213
838,556 1 ,6 9 0 ,U 7
7.790.497 12,508.226 7,416,706 3.051,664 11.821.443 166.651
267,633 1,707,851 , 5 3 ,1 U
922,645
1,049,867 1,776,435
267,598 1,707,730 33,099
922,470
1,049,709 1,776,024
7,233
1,683
36
5,243
8,477
3,813
628,30£ 12,427
383,U 3
538,604
95,402
659,726
172,25] 1,079,546 20,684
584,04]
666,754 1 ,U 6 , 709
214,444
44,906

579,759
45,194

205.411
14,072

96,522
4,706

361,46e
6,32e

7,476
-

Table 3. - Corporation income tax returns with balance sheets, 1/ 1948, by major industrial groups - Part I, all returns; Part XI, returns with net income)
Number or returns, assets and liabilities, compiled receipts, compiled deductions, compiled net profit or net loss, net incane or deficit, net operating
loss deduction, income tax, compiled net profit less income tax, and dividends paid by type of dividend - Continued
PART n . - RETURNS WITH NET INCOME 2/ - Continued
(Money figures in thousands of d
o
l
Major industrial groups 4/
Manufacturing - Cont
Scientific
instruments
photographic Other
manufac­
equipment;
watches, .
turing
clocks
Number of returns with balance sheets 50/
Assets:
Cash 31/
Notes and accounts receivable
Less) Reserve for bad debts

973

Inventori

Investments, Government obligations 32/
Other investments 35/
Gross capital assets 54/ «.except land)
Less> Reserves
Land
Other assets
Total assets 35/
Liabilities)
13 Accounts payable
Bonds, notes, mortgagee payable)
Maturity less than 1 year
Maturity 1 year or more
Other 11abilities
Capital stock, preferred
Capital stock, common
Surplus reserves
Svi-plus and undivided profits 56/
Less) Deficit 37/
Total liabilities 35/
Receipts)
Gross sales 8/
Gross receipts from operations 9/
Interest on Government obligations
(less amortisable bond premium)i
Wholly taxable 10/
Subject to surtax only U /
Wholly tax-exempt ¿2/
Other interest
Rents 13/
Royalties 14/
Excess of net short-term capital gain
over net long-term capital loss IS/
62 Excess of net long-term capital gain
over net short-term capital loss IS/
55
Net gain, sales other than capital assets IS''
Dividends, domestic corporations 17/
Dividends, foreign corporations 18/
Other receipts
Total compiled receipts 6/
Deductions >
Cost of goods sold 19/
Cost of operations 19/
Compensation of officers
Rent paid on business property
Repairs 20/
Bad debts
Interest paid
Taxes paid 21/
Contributions or gifts 22/
Depreciation
Depletion
Amortisation 2g/
Advertising
51
Amounts contributed under pension
plans, etc. 2£/
52

Net loss, sales other than capital assets
Other deductions
Total compiled deductions
Compiled net profit (37 less 54)
Net income 2/ (55 less 27)
Met operating loss deduction 25/
Income tax 3/
Compiled net profit less incoee tax
(55 leas 50)
Dividends paid,
80 : Cash and assets other than own stock

Transpor
tation

Communi­
cation

Electric Other
and gas
public
utiUties utilities

5,685

13,976

10,208

1,905

121,550
275,770
231,705
442,939
6,942
16,416
429,385
730,190
65,886
93,093
131,156
176,164
532,195
894,357
248,976
363,569
15,917
40.391
19,088
53,265
1.290.964 2.326.184

2,660,093
2,350,300
44,954
1,952,887
1,844,963
11,823,134
63,092,866
16,086,727
415,064
1,955,033
69.962.659

1,688,092
1,326,906
7,642
1,023,060
1,058,056
5,397,259
29,973,267
8,045,172
180,074
1,256,514
33.830.214

192,289
409,652
5,402
183,937
420,619
4,027,486
10,125,826
3,013,969
16,763
144,159
12.508.360

749,895
590,583
' 53,252
729,848
374,518
2,568,930
22,064,004
4,856,455
202,147
554,085
22,724,103

208,864 2,592,083

1,538,843

372,927

465,079

89,465

22,813
98.391
739,999
76,468
160,567 24, 642,U S
146,534
240, 581. 4,541,787
73,513
110,137 3,805,288
827,043
491,753 20,769,565
68,175
83,155
914,157
488,749
946,811 12,612,141
1,846
14,555
454,474
1.290.964 2.326.184 69.962.659

1,256

956

275,244
U2,519
538,536
10,783,792 4,109,484 9.329.277
2,813,804
538,172 1,136,113
1,236,146
168,876 2,314,544
8,462,855 6,069,682 6,058,865
350.044
47,159
498,077
8,760,602 1,091,543 2,655,705
391,096
6,802
52,093
33.830.214 12.505.360 22,724,105

1,766,792 4,120,120
455,997
304,407
6,859
42,889 25,644,616 16,099,567

8,078
5,497,351

120,010
5.895.278

1,194
97
62
2,037
6,162
1,916
146

24,200
1,622
614
98,523
355,944
U,672
1,057

13,980
1,528
348
52,894
301,960
8,765
964

4,460
20
28
13,265
26,651
1,242
10

5,607
69
152
52,074
24,397
1,550
-83

6,804

62,497

43,527

4,258

12,491

69
502
5,394
4,836
106
14,057
7,050
387,812
100,057
205,929
5,750
2,738
12.708
1,529
5,595
12,611
21,560
106,734
74,159
6,284
1,810,171 ,213,257 27,147,385 17,012,587 5,769,186

371
79,856
5,577
24,350
6,201,865

1,144,756
2,553
52,338
8,929
25,652
1,517
4,097
53,899
2,253
26,836
2
25
42,277
15,555

,869,912
507,225
216,888
3,094
19,222 16,760,756 U , 507,O U 2,089,369
132,484
192,850
143,674
16,280
24,343
706,141
599.044
61,612
35,482
38,303
3,480
30,331
7,541
20,882
5,427
10,292
11,627
793,702
384,862
U7,140
56,882 1,579,320
813,066
230,238
5,826
15.708
3,770
2,558
47,664 1,489,951
642,6821
324, 508
1,025
33,507
13,142
IS
594
19,0471
17,573
215
60,826
69,099
35,475
19,760
10,005
201,515
24,693
111,293

84,992
5,096,782
29,575
45,337
878
4,997
277,763
520,871
9,262
508,580
20,116
1,257
13,770
65,032

998
14,423
6,867
539,332 1,358,994
733,504
,824,584 23,598,402 15,178,009
388, 673 3,548,983 1,834,578
388,611 3,548,369 1,834,230
5,238
21,292
18,032
137,472 1,188,609
645,984
251,201 2,360,574 1,188,594

5,056,934
1,144,931
1,144,779
966
597,604
747,327

284
223,899

1
I
1

Total
public
utilities

1,584,850
225,321
225,296
660
79,778
145,543

64,920

183
241,367
3,231,404
537,782
537,754
1,208
135,221
402, 561

7,345

372,377

Total
trade

130,880

l

a

r

Total
Commis*
wholesale sion
merchants
42,564

s

^

Other
whole­
salers

5,415

37,149

29,817
5,026,568 2,026,286
270,486
23,359
9,835,132 5,218,317
541,999
658
558,259
131,965
10,292
16,042 12,815,741 5,465,116
U5, 735
U,770
1,201,706
472,562
65,279
29,459 2,651,849 1,245,747
185,297
929,769 8,862,196 2,453,971
107,583
171,131
5,235,039
881,038
35,375
16,080 1,022,864
224,718
10,599
20,475
890,922
301,599
34,142
904.982 58,729,600 16,395,513 1,285,455

1,755,800
4,676,318
121,673
5,349,381
407,283
1,060,450
2,546,388
845,663
214,U 9
267,457
15.109.860

15,234

6,212,192

5,571,454

4U,137

5,160,297

18,700
2,265,397 1,241,1)63
58,455
?,61?,146 1,063,856
419,560
65,100
55,698
3,598,059 1,379,224
92,182
1,326,416
85,722
487,978
35,051
178,183
7,887,779 3,108,295 .240,785
18,877
1,150,573
441,623
22,763
124,491 13,893,972 5,187,887
371,494
4,483
216,834
85,547
9,314
904.982 38,729,680 16,595,313 1,285,453

1,182,608
998,756
1,287,042
454,927
2,867,510
418,860
4,815,893
76,033
15.109.860

_____________________

Total
retail

74,002

359,489

5,005

10,386

Furniture Automotive
and house dealers
furnish*
and
inga
filling
stations
6,361

17,308

897,696
512,245
81,499
1,287,895
594,634
484,263
95,205
15,449
17,186
2,064,505
677,710
371,567
551,215
74,739
29,378
497,972
142,394
52,658
1,991,042
455,250
162,125
774,024
168,280
56,399
284,275
50,082
25,460
194,877
54,217
21,752
6.700.048 ,958,540)}, 155, U 7

640,359
495,147
14,079
1,050,652
97,304
123,282
840,095
209,988
156,162
74,189
8.253.103

599,356

114,683

502,530

64.360
802,555
158,408
56,591
95,425
1,324,772
141/ 158,052
432,334
69,544
149,757
1,955,068
642,809
191,886 163,507
92,686
728,035
369,120
95,107
55,012
4,047,271
313,356 1,420,529
365,646
279,729
619,222
517,252
70,875
34,156
40,602
718,102 2,789,784
7,425,U5
795,262
572,954
U2,082
12,572
9,544
10,564
•9,671
18,922,853 1.894.105 6.700.048 l,958,540 1,153,U7

230,389
209,566
436,901
51,835
654,149
87,030
1,310,067
9,164
3.253.103

, 3,507 20,616,806 58,551,484 2,647,880 55,883,604 53,264,601 11,209,754 14,475,168 4,778,148 1,921,957
152,420
2,315,629 1, 501,405. 638,062
863,343
618,710
47,407
46,678
SB,895
24,984

U , 348,209
289,740

2,241

17,583
775
674
74,743
186,765
13,161
3,033

7,978
273
530
29,016
59,527
9,257
1,226

1,252
52
32
5,461
3,046
1,305

74,429

29,748

2,258

6,746
298
23,555
56,481
7,952
858

8,427
449
245
58,707
129,857
1,921
1,526

27,510

34,756

221

4,378

282,052

5,658
149
71
13,215
60,099
278
41

1,092
39
18
1,925
23,734
155
S4

1,045
64
14
9,650
12,191
317
984

4,149

. 1,721

U,325

81
9,426
2,974
238
2,736
5,164
401
370
. 265
475
1,236
1,970
94,054
49,190
10,234
58,956
38,586
2,139
15,691
7,422
1,166
3,750
2
42,892
24,704
561
24,145
10,543
700
9,441
58
11
1,941
947,972
326,646
41,409
285,237
541,962
21,338
165,585
87,569
88,515
67,185
165,747 124,395,942 60,553,758 ,352,118 57,201,640 54,695,454 U,295,457 14,794,591 ,96},741 2,045,538 U,745,7U
2,251
67,5^4
3,321
2,148
795
166
13,937
15,145
U8
14,181
34

96,735,325 50,9U,780
1.265.187
814,957
2.045.188
849,197
1,146,421
185,803
309,453
77,192
177,335
60,189
192,514
86,701
280,367
865,315
24,925
63,513
575, 665
166,106
15,763
14,229
2,363
504
1,055,792.
238,556
158,660
46,762

,453,041 48,458,739 38,843,009 9,235,854 9,612,981 3,175,822 1,214,609
217,397
597,540
559,848
17,069
32.408
32,U 8
6,127
102,384
746,815 1,007,584
110,683
57,653
131,037
82,680
16,650
169,153
892,071;
86,726
266,520
46,552
216,203
2,533
74,659
205,878
34.288
66,205
16,165
7,2U
5,685
56,504
99,678
4,138
13,478
26,474
11,250
7,413
79,288
87,342
9,495
20,563
7,971
7,006
13,515
266,852
5U, 614
67,425
186,002
2$,232
47,209
2,087
*2^,838
54,558
3,551.
U,163
5,030
1,969
8,038
158,068
58.408
549,830
94,U 1
34,025
12,465
534
13,695
906
36
28
43
27
477
1,625
64
59
265
15,974
222,562
747,277
52,979
321,286
U9,441
55,979
4,°'“
41,874
11.288
85,901
57,894
5/95
1,067

28
6,325
1,920
170
1,750
3,458
477
U , 7 4 6 13,785,270 4,431,334
533,498 4,097,836 9,269)5201 1,371,859 2,879,675
132,055 118,378,067 58,190,482 3,181,834 55,008,648 51, 498, 699 U , 026, 630
13,671,195
31,692
6,017,875 2,363,276
170,284 2,192,992 5,196,755
268,827 1,123,396
31,606
6,017,201 2,362,946
170
2,192,694 3,196,5101
268,804 1,123,325
1,066
24,979
12,274
2^161
10, U S
10, 4141
885
696
9,800
2,095,557
824,009
55,044
768,965 1 , U 6 , 5 7 9
97,180
■il6, dll
21,892
3,924,318 1,539,267
115,240 1,424,027 2,080,176|
17 1 ,6 9 7
7 0 6 ,9 8 5

399,875

stums with

4,559

2,688,737
3U,997
3,718,950
154,129
175,894
4,677
6,186,755
654,990
669,731
27.360
1,098,839
100,197
5,543,967
827,516
2,023,660
308,755
686,945
53,498
528,685
77,850
18,922,855 1.894.105
2,154,869

Apparel
and
acce»sorles

General
merchan­
dise

/ 1948, tgr major industrial groups — part I, 4
■urns; part XX» returns with
compiled deductions, compiled net profit ox* not lose*
w, and dividends paid by type of dividend - Continued

55,117

operating

8,802,941
186,789
527,590
92,295
35,277
15,777
18,981
80,440
7,835
61,282
85
658
105,718
5,987

565
898,126
455,930
1,090,103
4,7Q2,847 1,923,473 10,829,821
----121,865
915,890
121,846
915,376
967
1,272
57 , 935
823,026
8 3 ,9 5 0

1 4 ,79B I

5 3 2,864

801

Cash aivi

other thBLti ■

11,252

H

1,051,657 !

, « 1 1 returns; part XI, returns with net incoia
iustiial groups — P«rt
, compiled net profit o nei lose, nei income or deficit, nei operatin
compì led dedxa
Continued
and dividende paid by type of dividend

'able 8. — Corporatio
Number of retorne,
loss deduction, inc

PART II. - RETURNS WITH NET INCOME Z/ - Continued
____ (Money figures In thousands of dollars)
Finance, Insurance, real estate, and lessors of real property

Trade - Continued

Retell - continued

Drug
stores

i
2
S

4
5
6
7
8
9
10
U
12
1S

14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61

umber of returns with balance sheets 30/
ssets:
Cash 31/
Hotes and accounts receivable
Less: Reserve for bad debts
Inventories
Investments, Government obligations 32/
Other investments 55/
Qross capital assets 54/ (except land)
Least Reserves
Land
Other assets
Total assets 35/
labilities:
Accounts payable
Bonds, notes, mortgages payable:
Maturity less than 1 year
Maturity 1 year or more
Other liabilities
Capital stock, preferred
Capital stock, common
Surplus reserves
Surplus and undivided profits 36/
Least Deficit 37/
Total liabilities 55/
eceipts:
Qross sales S/
Gross receipts from operations 9/
Interest on Government obligations
(less amortizable bond premium):
Wholly taxable 10/
Subject to surtax only 11/
Wholly tax-exempt 12/

5,064
68,449
58,544
877
205,175
7,299
19,557
161,461
68,725
7,284
16,227
454,176
64,955
16,297
57,125
50,241
22,054
89,207
12,262
185,520
25,261
454,176

Eating
and
drinking
places

Building
»ateríais
and
hardware

Total
finance,
insurance,
real estate,
and lessors
of real
property

Other
retail
trade

footnotes, see pp« 25— 26.

4,764

Security
and con■odityexchange
brokers
and
dealers

Total
Insurance
carriers
and
agents

Insurance
carriers

Insur­
ance
agents
and
brokers

758

6,470

1,756

78,745
515,804
716,261
188,669
171
22,285
.
10,206
809,491
497,648
298,808
8,440,850
12,641
285,185
4,604
90,429
65,971
1,032
77,811
25,921
10,806,845 1,096,689

2,034,492
287,884
2,653
.
22,604,546
58,299,420
513,302
24,963
17,091
3,196,350
66,925,249

1,887,087

277,275

310,982

510,952

250,127
155,443
2,457,687
5.177.115
69,746
115,795
2.074.117
17,724
221,801
- 1,603,954
937,605
56,627
141,72)2
350,083
58,046
2,871,642
9,451,240
223,518
812,841
61,149
44,154
80,052
283,747 206,546,514 145,566,154 145,988,794
195,981
503,570
871,367
19,975
76,709
265,740
1,682,567
11,570
34,110
1,247,926
110,405
50,696
546,425
67,526
115,075
639,802 5,229,458
7,161,954 3,225,188
752,215 11,771,779
465,159
15,744
5,996
18,614
52,455
996,740
105,789
440,242
1,765,061 1,556,515
89,728
655,207 1,285,470
6,747,851
644,497 4,257,561
157,240
459,179
88,518
20,277,165 11,758,227
474,665
5,641
595,061
8,751
7,055
21,690
9,788 102,969
1,419,995
19,255
455,959 1,168,514 1,887,491 5.411.514 255.505.809 175.075.469 155,025,494 6,146,441 10,806,845 1,096,689

11,671
19,175
60,342,128
35,702
916,809
17,449
5,314,225
42,842
66,925,249

11,671
19,175
60,286,686 55,442
15,620 20,082
829,126 87,685
17,449
5,190,592 125,655
56,782
6,060
66,285,242 640,007

5,471

14,052

14,514

101,864

27,258

42^407,045

49,785,556
561,987
10,206
91,468,755
54,122,405
12,914,547
5,212,146
5.491.115
4,880,557
255.505.809

59,629,165
48,458,728
548,564
10,206
68,515,148
14,058,259
1,561,615
299,498
178,175
1,554,257
175.075.469

2,256,761

1,268,425

56,506

7,798

125,554

272,166

485,889

528
14
22
409
5,109
125
115

482
15
8
2,717
5,955
518
57

765
117
62
4,987
8,594
221
182

1,178
SI
99
7,020
17,581
1,985
281

14,024

7,692

548,574
38,486,242
42,811,650 4,742,148
74,547
251,761
-

_

127,645
67,078,364
661,603
4,637,018
1,183,378
82,411
26,174
178,291
17,769
95,401
1,165,493
67,012
155,025,494 6,146,441
-

_

412,141

_

579,011

22,581,111
58,207,587
447,556
12,679
12,252
5,162,528
66,285,242

55,197
6,162,825

50,085
1,109,579

548,517

448,777

30,085
59,733

52,552

4,057,741

5,706,655

1,509,677
219,971
151,565
5,125,052
1,565,510
181,585
7,414

787,612
201,175
116,948
2,026,265
128,157
49,251
4,664

768,539
199,265
115,757
1,658,856
107,629
1,928
1,742

2,474
91
138
272,376
3,114
172
355

11,065
1,197
1,942
95,274
17,268
47,111
2,177

5,534
622
1,111
1,779
146
20
592

511,046
18,405
53,755
1,063,338
106,642
205
446

510,585
18,571
55,729
1,061,812
104,564
59
247

118,194

56,625

10,992

66,274

4,505

7,086

6,142

62,564
585,526
44,099
84,592
5,546,089

2,459
17,021
194
36,705
5,495,013

3,901
11,401
2,231
24,780
780,800

5,946
548,909
41,430
18,065
944,474

50,058
6,195
244
4,844
127,802

469
185,550
1,871
56,488
6,021,042

57.509
59,550
46,964
1,660,525
5,570,529
1,975,760
1,858,812
6,714
417,740
1,558,020

542,504
46,769
24,150
189,611
326,558
129,791
9,690
59,513
285
'—
38,058
48,877
45,615
1,192,940
2,454,119
1,038,894
925,157
2,071
270,355
768,559

•
41,359
16,960
1,525
49,658
111,199
15,978
1,111
6,474
4
•
17,007
2,972
265
287,918
552,430
228,370
228,252
2,194
76,174
152,196

25,758
22,689
19,586
5,340
1,640
2,812
33,451
15,756
1,758
6,290
6,005
1,070
6,556
1,038
115,278
258,747
685,727
683,785
2,005
66,026
619,701

.
24,552
2(^/25,965
26/99.385
20,579
3,617
31,441
193
4,155
5,540
133
5,067
1,290
5,829
2,464
1,455
2,865
128,532
122,812
197
940
1,691
825
26,547
25,546
14
14
26
e •
8,459
1,594
12,385
14,055
1,365
15,956
282
48
327
5,500,082
64,189
5,697,064
105,033 27/4,023,028 27/5,720,595
1,926,888
1,998,014
22,769
1,895,159
1,964,259
21,658
50,282
444
50,876
110,525
5,185
151,800
1,816,565
17,584
1,866,214

5,926
1,901
45
196,982
502,455
71,126
71,100
594
21,275
49,851

1 ,020,120
51,195

535,002
42,321

86,780
. 5.604

591,384
2,816

159,414
1,055

22,552
1,488

Other interest
Rents 13/
Royalties 14/
Excess of net short-term capital gain over
net long-term capital lo3s 15/
2,147
4,487
5,854
1,505
205,865
9,925
Excess of net long-term capital gain over
net short-term capital loss 15/
647
75
625
1,072
241,805
1,288
Net gain, sales other than capital assets 16/
2,558
917
2,954
2,009
795,595
6,278
Dividends, domestic corporations 17/
.
554
5
2
46,808
7,645
Dividends, foreign corporations ]3/
10,959
9,802
29,557
61,674
215,956
79.564
Other receipts
1,507,479 1,546,547 2,650,756 4,547,854 9,146,750
14,280,005
Total compiled receipts 6/
eductions:
Cost of goods sold 19/
872,861
727,475 1,961,700 5,258,768 6,978,556
56,514
2,520
22,818
12,956
47,265
Cost of operations IS/
57,017
90,402
85,875
Compensation of officers
188,607
28,559
41,659
141,888
26/691,680
45,512
59,571
15,769
191,497
68,547
67,125
Rent paid on business property
6,558
Repairs 20/
15,750
8,if85
16,241
26.565
129,980
525
10,297
559
Bad debts
17,468
17,580
248,959
Interest paid
2,559
2,897
6,525
11,567
757,791
18,471
Taxes paid 21/
16,574
22,757
24,705
44,492
75,554
628,966
Contributions or gifts 22/
626
626
1,659
2,401
19,487
4,250
Depreciation
22,607
18,517
11,425
56,992
557,507
59,727
•
•
Depletion
588
628
117
41,540
Amortization 25/
56
162
205
69
254
550
Advertising
17,966
8,179
85,« 9
14,189
51,540
69,979
Amounts contributed under pension plans,etc«24/
1,155
980
2,877
5,997
1,460
78,582
Net loss, sales other than capital assets 161/
47
546
191
550
947
50,770
Other deductions
256,855
562,058
501,590
654,366 1,085,416
6,110,540
Total compiled deductions
1,260,895 1,288,166 2,462,108 4,335,566 8,688,886 27/9,466,079
implied net profit (37 less 54)
46,586
58,581
188,648
214,268
4,815,926
457,844
it income 2f (55 less 27)
46,578
58,559
188,640
214,206
4,662,561
457,745
it operating loss deduction 25/
285
2,015
546
2,324
54,921
2,291
icome tax 5/
65,242 152,969
14,459
17,840
59,908
792,125
implied net profit les3 income tax (55 less 58)
52,127
40,541
128,740
149,026
504,875
4,021,801
.vidends paid:
Cash and assets other than own stock
12,176
11,925
26,660
29,381
86,6 88
1,407,770
675
1,814
7,684
7,445
Corporation's own stock
64,969
14,795
t

Total
finance

78,725
106,785
190,988
311,545
54,096
514,488
515,754
895,865
506
9,175
20,944
80,400
655,587 1,161,872
50,144
458,645
41,677
15,509
25,250
59,413
24,061
55,129
85,809
507,263
255,501
524,507
526,670
864,258
100,497
152,257
205,957
530,141
45,765
54,795
51,850
111,201
18,627
22,526
48,420
60,638
455,959 1,168,514 1,887,491 3.411.514

1,278,586 1,264,645 2.588.717 4,582,419 8,820,723
42,271
81,155
193,514
8,656
19,846
105
12
8
584
4,598
157
2

Tnsiiranfift carriers, agents
Holding
Credit
and ether
agencies investment
companies
other
than
banks

Banks
and
trust
companies

25,758
22,689
427,601
70,686
27.508
242,214
476,997
162,570
12,756
75,102
6,520

-

6,954
454

161,946
2.543

208
261
178,520
5,050
1,251
640
25,564 10,924
5,647,485 575,559

75,422
11,062
615
1,777
1,051
5,720
751
5,201

Table 3. - Corporation income tax returns with balance sheets, 1/ 1948, by major industrial groups - Part I, all returns} Part II, returns with net income*
Number of returns, assets and liabilities, compiled receipts, compiled deductions, compiled net profit or net loss, net income or deficit, net operating
loss deduction, inoome tax, compiled net profit less income tax, and dividends paid by type of dividend - Continued
PART n s - RETURNS WITH NET INCOME 2/ - Continued
(Money figures in thousands oi dollars)
Services

SES

Hotels
and
Total
services other
¡lodging
places
Number of returns with balance sheets 30/
Assets*
Cash 31/
Notes and accounts receivable
Less* Reserve for bad debts
Inventories
Investments, Government obligations 58/
Other investments 33/
Gross capital assess 54/ (except land)
Less s Reserves
Land
Other assets
Total assets 55/
liabilities*
Accounts payable
Bonds, notes, mortgages payable:
Maturity less than 1 year
Maturity 1 year or more
Other liabilities
Capital stock, preferred
Capital stock, common
Surplus reserves
Surplus and undivided profits 56/
Less* Deficit 37/
Total liabilities 55/
Receipts :
Gross sales S/
Gross receipts from operations 9/
Interest on Government obligations
(less amortizable bond premium)i
Wholly taxable 10/
Subject to surtax only 11/
Wholly tax-exempt 18/
Other interest
Rents 15/
Royalties 14/
Excess of net short-term capital gain
over net long-term capital loss 15/
Excess of net long-term capital gain
over net short-term capital loss 15/
Net gain, sales other than capital assets )§/
Dividends, domestic corporations 17/
Dividends, foreign corporations l5/
Other receipts
Total compiled receipts 6/
Deductions:
Cost of goods sold 19/
Cost of operations I9/
Compensation of officers
Rent paid on business property
Repairs 80/
Bad debts
Interest paid
Taxes paid 81/
Contributions or gifts 88/
Depreciation
Depletion
Amortization 85/
Advertising
Amounts contributed under pension .
plans, etc. 84/
Net loss, sales othe r than capital asaeta 18/
Other deductions
Total compiled deductions
Compiled net profit (57 less 54 )
Net income 8/ (55 less 87)
Net operating loss deduction 25/
Income tax 5/
Compiled net profit less income tax
(55 less 58)
Dividends pai.dk
Cash and assets other than own stock

86,955

Automotive
Personal Business repair
services services. services
and
garages

5,391

Amusement,
axcept
notion
pictures

Nature
Other
services, of
including business
not
schools
allocable

3,363

8,105

8,858

758

1

805,875
10,905
108,413
85,610
964
463
186,866
19,530
62,788
1,453
301,808
8,809
816,655
36,930
15,505
378,080
1,645
190,496
3,560
49,805
85,874 1,555,316

80,866
505
5,816
24,574
34,959
277,791
101,687
58,095
16,775
421,855

58,742
73,362
8,759
12,316
80,495
86,786
145,515
54,489
13,150
11,960
304,958

11,244
38,445
491
10,478
3,958
19,860
34,446
10,486
10,653
5,026
116,527

2
3
.4

90,878

31,966

55,091

10,700

13

18,371
58,076
76,454
55,881
80,950
130,859
7,965
34,750
58,458
155,804
3,117
84',594
64,918
880,868
11,589
12,575
881,596 ' 819,104

39,678
. 5,464
841,013
6,751
US , 464
U,572
85,754
728
243,675
18,702
86,568
936
712,514
88,155
19,422
1,067
85,874 1,555,516

19,4 n
60,141
42,888
n,084
106,597
10,516
149,839
10,461
421,855

18,344
86,007
44,571
18,550
77,581
14,991
102,682
86,819
304,958

10,013
16,654
n,967
8,704
36,883
1,361
34,816
7,9U
116,587

14
IS
16
17
18
19
80
21
88

301,568 170,945
860,539 1,469,055

116,748
154,751

103,688
47,052
105,987 1,447,840

49,557
447,498

67,763
481,907

67,590
19,640

83
84

364
6
3
364
6,945
8,033
78

358
19
88
857
1,944
404
87

48
7
8
744
1,977
345
49

25
86
27
88
89
50
51

6,303

5,875

8,481

119,570
789,118
658,419
66,888
1,785
14,046
37,655
561,595
30,914
198,159
96,487
686,508
3,777,178 1,407,397
1,566,054
579,784
875,908
611,076
809,391 ■V 47,850
5,585,536 1,500,440

68,586
85,197
1,911
47,496
15,516
44,851
539,050
885,905
55,588
88,885
636,813

168,536
840,778
5,801
59,860
40,373
111,388
391,104
157,304
14'917
43,751
881,596

22,692
86,786
468
15,256
2,446
9,306
162,936
53,548
87,481
8,865
819,104

70,807

53,676

160,798

81,055

53,864
808,895
544,519
1,084,890
101,060
581,157
64,355
187,957
856,888
1,065,508
57,005
183,559
487,535
8,005,409
53,989
147,781
5,585,556 1,500,440

87,693
74,384
54,079
85,035
170,877
6,054
836,964

477,898

Miscella­
neous
Motion
repair
services, pictures
hand
trades

656,813

1,138

14,855

5i,sn

5
6
7
8

9
10

n
12

1,895,891
5,650,658

458,036
743,781

5,891
189
98
8,581
153,840
10,260
1,157

584
10
9
1,608
79,108
Ip
486

859
19
80
417
8,889
61
65

690
55
26
988
16,075
2,587
187

120
3

21

847
18,853
64
871

47
891
2
8

15
6
4,073
34,335
5,064
101

89,434

5,573

. 8,440

4,560

8,880

141

6,184

1,60§

971

1,612

58

1,002
483
989
4,510
5,888
1,849
3,850
25,698
718
37
17
4,837
19,016
7,885
10,987
100,986
7,868,098 1,884,883 1,177,845 1,688,986

586
101

830
14,744
3,557
57,997
1,108
2n,274 1,601,859

662
1,538
8
9,499
589,350

318
981
118
9,446
505,049

556
781
5
8,783
95,679

S3
54
35
56
37

27,977
836,918
88,627
85,666
18,589
504
9,979
55,173
1,740
39,819
16
521
45,027
5,543

87,708
880,788
19,099
18,051
8,655
1,191
3,523
18,891
1,650
15,561
116
99
8,766
1,115

38,552
184,679
41,070
13,083
4,419
1,659
1,948
8,n4
445
8,800
4
88
8,808
1,598

51,848
6,463
4,584
1,088
1,058
468
952
1,588
86
2,076
109

38
39
40
41
48
45
44

no

248
100,107
444,945
75,405
75,402

171
141,447
454,819
50,830
50,802
1,717
15,776
35,054

•

5,708
899,052

115,298
848,487
98^607
51j713
9,506
5*081
3,587
16,918
ljl68
55,105
19
49
7,601
10^949

74,657
75,187
16,619
80,038
3,610
698
8,499
6,595
887
17,955

148
890
266
1,380
362,968
857,987
354,007
1,552,876
1,559,084
1,099,464
1,156,064
6,550,872
78,381 *149^902
757,886 188,819
78,361 149^876
128,210
737,154
2*145
1,673
8,888
12,549
50^231
82,657
48,757
840,702
99,671
55,784
85,482
496,584

119
46,805
267,163
31^883
31.'889
350
8,974

760,887
8,997,336
508,088
845,108
n 6 , 058
12,468
50,581
161,768
7,881
209,715
181
781
104,760
81,190

161J38S

2£,7SS

848,075
875,881
84,375
48,268
53,448
8,868
84,877
58,312
1,508
58,661
14
n7
14,738
717

BS,628
l,iSl

159,595
491,591
68,570
25,845
16,505
8,464
4,305
21,430
1,811
38,058
12
116
16,497
988

X4,330
1,15E

2'087

41
2,089

'no

22,915

446

•

9a

40

68,967
78,591
n ,121
8,444
1,358
609
463
8,989
78
8,976

10
1,831
176
88
30,437
195,406

859,118
1,394,587

15,868
15,868
336
5,017
10,851

137,357

25,935
49,470

928
89

63,966
835

16,438
5,642

806,732

206,726
1,839
69,375

1,667

8-178

45
46
47
48

10

49

444
179

50
51

49
13,835

58
53
54
55
56
57
.SB

84^177

11,502
11,494
362
5,407
8,095

2*377
2,267

59

so

abilities,
Table 4. — Corporation income tax returns w i t h balance sheets, 1 / 1948, b y total assets classess
N u m b e r of r e t u r n s-,
compiled receipts, compiled deductions, compiled n o t prof i t or n e t l o s s , n o t income or deficit, n o t operating loss deduction, income tax,

i (55 less 58)
1Dividends paidx
6 0 \ Cash and assets other than o k q a"bode

\

161^)88 I
1^,7591

1,151j

32,066
2,087

14,530
1,159

2,560
446

928
89

63,966
835

Table 4. — Corporation Income tax returns with balance sheets, 1 / 1948, b y "total assets classes:

16,43a|
5,642]

|
8,1781
1,348]

2-377
2,287

SO
61

abilities,

Number of returns,
-

compiled receipts, compiled deductions, compiled n e t p r o f i t or n e t loss, n e t income or deficit, n e t operating loss deduction, income tax,
compiled n e t prof i t less income tax, an d dividends p a i d bjr type of dividend

■”*— ...

15

Number of returns with balance sheets 50/
Assetst '
Cash 51/
Notes and accounts receivable
Less:,. Reserve for bad debts
inventories
Investments, Government obligations 52/
Other investments 55/
Gross capital assess 54/ (except land)
,
Less: Reserves
, Land
■, Other assets
Total assets 55/
Liabilities:
Accounts payable
Bonds, notes, mortgages payable:
Maturity less than 1 year
Maturity 1 year or more
Other liabilities
Capital stock, preferred
Capital stock, common
Surplus reserves
' Surplus and undivided profits 56/
Less: Deficit 57/
Total liabilities 35/
Receipts:
'Gross sales 8/
Gross receipts from operations 9/
Interest' on Government obligations (less
amortizable bond premium):
Wholly taxable 10/
Subject to surtax only 11/
Wholly tax-exempt 12/
Other interest
Rents 15/
Royalties 14/
Excess of net short-term capital gain
.over net long-term capital loss 15/
Excess of net long-term capital gain
over net short-term capital loss 15/
Net gain, sales other than capital assets 16/
Dividends, domestic corporations 17/
Dividends, foreign corporations 15/
Other receipts
Total compiled receipts 6/
Deductions:
Cost of goods sold 19/
Cost of operations 35/
Compensation of officers
Rent paid on business property
Repairs 20/
Bad debts
Interest paid
Taxes paid 21/
Contributions or gifts 22/
Depreciation
Depletion
Amortization 25/
Advertising
Amounts contributed under pension plans, etc.24/
Net loss, sales other than capital assets 16/
Other deductions
Total compiled deductions
Compiled net profit or net loss (57 less 54)
Net income or d e f i c i t ^ (55 less 27)
Net operating loss deduction 25/
Income tax 3/
Compiled nel profit less income tax (55 less 58)
Dividends paid:
Cash and assets other than own stock
Corporation's own stock
For footnotes, see pp. 25-26.

' .........

Total

Under
50

536,853

234,590

65,736,507
85,895,688
1,298,567
48,293,412
104,819,408
84,201,909
180,561,966
64,224,879
9,312,955
11,857,616
525,156,015

719,405
966,781
20,880
919,869
41,505
219,348
2,465,490
871,068
321,052
247,017
5,006,519

26,302,071

955,152

411,873
12,225,165
57,325,532 ‘ 796,806
232,063,777
513,782
14,957,008
127,811
76,773,782 2,535,326
31,878
11,544,695
102,262,350 1,146,800
8,118,565 1,292,909
525,156,015 5,006,519

50
under
100

100
under
250

Total assets classes 55/
500
1,000
250
under
under
under
5.000
1,000
500
45,366

24,803

843,518 1,767,097 1,681,230
1,582,715 5,195,141 3,109,622
71,067
76,062
31,168
1,366,022 5,085,509 2,924,121
500,267
91,775
315,127
836,725 1,020,774
321,841
3,282,874 7,579,195 6,740,929
1,088,720 2,435,905 .2,344,946
516,116 1,216,151 1,092,684
491,863
547,111
263,509
6,948,478 15,832,087 15,145,477

2,047,712
3.670,827
77,755
5,118,700
1,233,264
1,484,641
7,110,795
2,630,041
1,015,778
387,718
17,561,661

2,115,221

1,807,687

96,747

1,018,500

100,541

1,889,253

27,414

5,OCX)
under
10,000
4,753

8,552,668 4,868,718
12,503,339 6,627,881
104,158
199,230
7,559,555 3,641,005
11,427,645 8,223,413
5,503,885 3,115,603
17,657,075 8,947,771
6,804,869 3,519,449
725,684
1,980,576
534,700
1,036,909
58,797,549 55,061,168
3,957,034

1,647,061

10,000
under
50,000
5,709

50,000
100,000
under 1
and
over
100.000
529

601

10,590,479 4,759,685 30,305,995
12,997,338 5,457,067 56,004,979
435^996
203,225
79,050
7,665,761 3,442,593 14,590,279
17,450,538 7,911,529 57,624,547
9,284,712 5,503,351 57,111,046
23,835,450 13,639,600 89,504,791
9,051,978 4,779,792 30,700,111
1,058,644
1,120,549
286,121
1,555,381 1,047,766
5*725.642
75,044,807 57,168,650 260,769,819
3,268,824

1,585,300

8,100,239

558,252
2,626,061
988,110 1,635,485
985,073 1,089,874 2,388,358
495,331 1,050,766
1,156,583 2,828,752 2,510,228 2,410,051 5,261,324 2,222,531 6,688,409 4,442,144 29,028,904
593,488 1,417,022 1,599,582 2,880,289 22,593,483 15,449,314 55,780,905 16,412,568 156,823,744
6,703,543
816,232 2,603,977 1,571,699
565,628 1,626,059
422,687
149,632
569,740
2,312,278 4,361,180 5,619,607 5,567,813 8,445,945 3,911,820 8,852,242 4,691,732 34,675,859
5,417,157
812,756 2,016,644 1,016,799
330,371 1,260,148
234,233
170,792
55,957
1,802,795 4,394,775 4,523,484 5,534,516 14,955,899 7,754,240 16,971,721 7,648,790 57,751,530
756,414
356,998
773,400
520,676
624,568 1,668,901
656,470
876,161
611,866
6,948,478 15,852,087 15,145,477 17,361,661 58,797,549 33,061,168 75,044,807 57,168,650 260,769,819

554,987,536 10,157,246 12,947,553 28,761,155 26,287,224 26,731,056 57,131,289 24,772*505 47,899,262 19,054,246
55,394,245 2,603,550 2,092,041 3,767,126 3,506,449 5,495,587 6,980,649 2,572,979 6,205,622 4,042,117

81,268,200
20,528,325

1,464,506
229,765
162,194
3,529,044
2,937,159
458,102
21,227

1,927
179
61
11,066
241,066
12,863
1,610

2,764
140
160
15,774
269,005
9,756
1,027

7j977
446
418
46,062
554,982
24,475
2,642

10,321
541
554
48,392
415,024
27,218
2,866

18,629
1,308
2,464
74,885
153,275
52,068
1,839

156,410
11,982
26,128
404,496
278,920
75,565
3,856

109,096
10,714
18,171
242,158
106,170
49,337
2,295

222,931
30,552
32,484
501,859
195,178
107,128
2,580

102,197
16,760
11,872
206,255
98,176
30,892
720

v 832,254
157,341
69,882
1,978,099
627,365
68,824
1,992

780,620

25,346

24,853

57,524

59,481

66,658

150,139

67,645

129,881

55,792

143,521

19,874
1,513
15,699
54,175
11,058
47,239
51,002
36,568
59,570
338,959
42,261
563,005
214,415
1,155,590
212,514
118,990
26,641
48,618
5,834
3,485
21,622
2,148,512
54,295
258,107
57,989
9,950
1,541
10,776
1,065
957
413
95
374,968
389,158
568,072
96,070
200,662
220,942
498,030
276,579
133,628
138,956
300,700
2,622,777
405,429,590 13,214,501 15,544,486 33,605,634 30,509,594 50,899,670 65,994,727 28,291,510 56,154,017 23,985,318 107,250,153
258,169,216 7,711,881 10,083,448 22,717,760 20,845,530 21,207,167 44,825,730 19,031,369 36,130,625 14,251,148
32,236,448 1,458,018 1,209,421 2,303,582 2,140,769 2,144,871 4,211,788 1,544,996 3,191,876 2,115,574
102,860
392,859
298,626
703,554 1,035,498
753,397 1,269,850
891,196
877,103
6,594,293
188,922
158,849
314,980
401,065
220,756
356,819
251,578
240,158
3,461,794
353,989
296,832
668,157
254,566
448,100
87,105
173,059
152,199
154,822
85,674
5,785,912
46,973
32,890
89,116
110,245
54,418
74,015
56,826
55,572
28,429
699,501
193,452
359,597
153,955
340,126
143,160
145,777
68,713
162,900
51,119
2,696,939
550,875
1,131,154
517,186
579,893
954,198
351,458
395,168
178,492
192,118
7,367,545
11,081
58,512
21,666
53,792
18,568
21,642
17,197
6,540
256,715
4,030
794,155
408,749
340,722
357,945
779,480
556,171
423,229
190,300
209,949
6,200,601
245,227
89,754
72,483
126,131
21,452
40,801
5,518
1,698,864
4,955
16,090
4,514
1,394
1,294
230
2,218
260
1,365
2,874
1,246
38,533
560,225
310,008
259,361
566,240
230,852
211,127
105,945
112,710
253,502
3,429,222
205,407
103,774
71,447
113,517
10,262
29,166
4,047
15,116
1,143,524
4,399
13,742
13,252
26,326
51,607
11,459
13,545
19,609
26,692
12,976
206,440
45,214,383 2,098,721 2,049,527 4,046,401 3,465,955 5,334,728 7,018,208 3,110,057 6,350,660 2,878,153
371,181,730 13,160,971 15,075,129 52,217,627 28,952,279 29,038,701 61,017,019 25,746,383 50,481,150 21,478,541
471,357 1,388,007 1,577,515 1,860,969 4,977,708 2,545,127 5,652,867 2,506,777
53,550
34,247,860
471,197 1,387,589 1,576,761 1,858,505 4,951,580 2,526,956 5,620,585 2,494,905
53,469
34,085,666
23,004
14,520
10,570
25,213
16,738
15,955
25,862
31,379
18,811
194,790
865,710
926,724 2,002,375
480,235
605,034
720,741 1,859,784
151,705
84,177
11,771,279
5,650,494
1,641,067
1,618,405
907,774
974,281 1,140,228 3,117,924
319,652
22,476,581 29/30,647

61;366¿558
12,135,553
269,370
974,698
1,465,440
. 171,017
1,100,342
2,719,003
43,687
2,339,921
1,076,515
25,140
859,272
588,189
39,252
8,865,975
94,055,930
13,214,203
15,144,521
14,740
4,076,798
9,137,405

848,602
33,960

4,159,185
284,431

9,304,748
1,021.918

79,799
5.680

92,072
14,540

255,643
50.021

261,753
64,606

346,413
92,712

1,053,534
217,254

605,950
98.478

1,623,819
160,456

Table 5* - Corporation income tax returns, 1/ 1948, by net income and deficit classes, for
returns with net income and returns with no net income: Number of returns, and net income
or deficit; also, for returns with net income, the income tax
(Net income and deficit classes and money figures in thousands of dollars)
Returns with no
Returns with net income 2/
Net income and deficit
net income 2/
classes 2/
Number of
Net
Income
Number of
Deficit 2/
returns
income 2/
tax 3/
returns
Under 1
1 under 2
2 under 3
3 under 4
4 under 5
5 under 10
10 under 15
15 under 20
20 unde r 25
25 under 50
50 under 100
100 under 250
250 under 500
500 under 1,000
1,000 under 5,000
5,000 under 10,000
10,000 and over

74,248
37,465
26,549
20,389
17,257
54,533
31,987
22,489
20,221
35,284
23,291
17,930
6,815
3,612
3,149
422
419

Total

395,860

No income data (inactive
corporations)
For footnotes, see pp.

25-26.

30,419
54,773
65,297
70,983
77,514
394,052
393,774
391,366
455,811
1,227,3291,638,522
2,783,257
2,371,864
2,512,794
6,494,787
2,933,395
14,377,513

5,483
10,164
12,377
13,592
15,053
80,155
83,458
84,434
100,925
360,665
587,407
999,583
842,652
881,216
2,252,495
992,884
4,597,540

86,967
24,470
15,416
10,923
8,048
22,119
9,644
5,361
3,255
6,715
3,174
1,577
444
167
92
7
4

25,746
35,519
38,078
37,916
36,031
156,702
117,762
92,688
72,749
232,766
219,384
236,550
151,415
118,864
175,283
49,666
51,107

36,273,250 2§/U,920,260

198,383

1,848,226

36,427

- 25 -

Footnotes for tables In this release
¿ / The information contained in this release
is compiled f r o m the returns as filed, prior to
revisions that m a y be made as a result of audit b y
the Bureau of Internal Revenue and prior to changes
resulting fro m carry-backs after the returns we r e
filed.
2/ "Net income" or "Deficit" is the differ­
ence between the total income and the total de­
ductions reported, exclusive of the net operating
loss deduction.
See note 25.
5/ "Income tax" consists of normal tax, sur­
tax, and alternative tax reported in lieu of normal
tax and surtax where the income includes an excess
of net long-term capital gain over net short-term
capital loss, if and only if such tax is less than
the normal tax and surtax. Tabulated w i t h the in­
come tax for returns w i t h net income is a «nail
amount of tax reported on returns w i t h no net in­
come, under the special provisions applicable to
certain mutual insurance companies, other than
life or marine*
4/ The industrial Classification is b ased on the
business activity reported on the return. Whe n multi­
ple businesses are reported on a return, the classifi­
cation is determined b y the business activity which
accounts for the largest percentage of total receipts.
A chart, showing the comparison of the major industrial
groups employed for 1948 with those for 1.947, appeared
in the preliminary report issued July 18, 1951. A
similar chart, showing the comparison of the minor in­
dustrial groups, will appear i n the complete report
"Statistics of Income for 1948, P a r t 2."
5/ Total number of returns includes returns
of inactive corporations.
6/ "Total compiled receipts" consists of
gross sales (less returns and allowances), gross
receipts from operations (where inventories are
not an income-determining factor), all interest
received on Government obligations (less amor­
tizable bond premium), other interest, rents, roy­
alties, excess of net short—t e m capital gain over
net long-term capital loss, excess of net long-term
capital gain over net s h o r t - t e m capital loss,
net gain from sale or exchange of property other
than capital assets, dividends, and other receipts
required to be included in gross income*
"Total
compiled receipts" excludes nontaxable income
other than tax-exempt interest received on certain
Government obligations.

1/

Number of returns shown excludes returns
of inactive corporations*
8/ "Gross sales" consists of amounts received
for goods, less returns and allowances, in trans­
actions where inventories are an income— determining
factor. For "Cost of goods sold," see "Deductions."
9/ "Gross receipts from operations" consists
of amounts received from transactions in w hich in­
ventories are not an income— determining factor.
For "Cost of operations," see "Deductions."
10/ "Interest received on Government obli­
gations, wholly taxable" consists of interest on
Treasury notes issued on or after December 1, 1940,
and obligations issued on or after March 1, 1941,
by the United States or any agency or instrumen­
tality thereof, reported as item 9(c), page 1, Form

il/ "Interest received on Government obli­
gations, subject to surtax only" consists of in­
terest on United States savings bonds and Treasury
bonds owned in principal amount of over $5,000
issued prior to March 1, 1941, reported as item
9(a), page 1, Form 1120; a n d interest o n obli­
gations of instrumentalities of the United States
(other than obligations of Federal land banks,

joint stock land banks, and Federal intermediate
credit banks) issued prior to March 1, 1941,
reported as item 9(b), page 1, F o r m 1120. V
1 2 / "Interest received on Government obli­
gations, whol l y tax-exempt" consists of interest
on obligations of States, Territories, or po­
litical subdivisions thereof, the District of
Columbia, and United States possessions; obli­
gations of the U n ited States issued on o r before
September 1, 1917; all postal savings bonds;
Treasury notes issued prior to December 1, 1940;
Treasury bills issued prior to March 1, 1941;
United States savings bonds and Treasury bonds
owned i n principal amount of $5,000 o r less is­
sued prior to March 1, 1941; and obligations
issued prior to Mar c h 1, 1941, b y Federal land
banks, joint stock land banks, and Federal
intermediate credit banks.
Interest from such
sources is reported under i t e m 19(a), (b), t o d
(c) of schedule M, page 4, F o r m 1120.
1 3 / Amount shown as "Rents" consists of
gross amounts received. The amounts of depre­
ciation, repairs, interest, taxes, and other
expenses, w h i c h are deductible fro m the gross
amount received for rents, are included in the
respective deduction items*
1 4 / Amount shown as "Royalties" consists of
gross amounts received* The amount of depletion,
w h i c h is deductible fr o m the gross amount of roy­
alties received, is included in the item of
"Depletion" i n deductions*
1 5 / Capital gain or loss is the amount of
gain or loss arising from the sale or exchange
of capital assets.
(A net loss from this source
is not deductible for the current year, but m a y
b e carried over and applied against capital
gains in the five succeeding taxable years to
the extent not allowed as a deduction against
a n y net capital gains of a n y taxable year inter­
vening between the taxable y e a r in whi c h the net
capital loss w a s sustained and the taxable year
to w h i c h carried.)
The term "Capital assets"
means property held b y the taxpayer (whether or
not connected w i t h trade or business), but ex­
cludes (1) stock in trade or other property
whi c h would properly b e included in inventory
if on hand at the close of the taxable year,
(2) property held primarily for sale to cus­
tomers in the ordinary course of trade or
business, (3) property used i n trade or busi­
ness,
of a character w h i c h is subject to the
allowance for depreciation, (4) Government
obligations issued on or after March 1, 1941,
on a discount basis and payable without interest
at a fix e d maturity date not exceeding one year
fr o m the date of issue, and (5) real property
used in the trade or business of the taxpayer.
Beginning 1942 gains and losses from (a) sale
or exchange cf depreciable property and real
property, used i n the trade or business a n d held
for more than 6 months, and.from (b) involuntary
conversion of such property and of capital as­
sets held for more than 6 months are treated as
long-term capital gains and losses, if the gains
exceed the losses. I f the losses exceed the
gains, the net loss is deductible as a n ordinary
loss. For taxable years beginning after December 51,
1941, "short-term" applies to gains or losses
on the sale or exchange of capital assets held
six months or less; "long-term" applies to gains
or losses on capital assets held over six months*
16/ "Net gain or loss, sales other than
capital assets" is the net amount of gain or
loss arising fro m the sale or exchange of de­
preciable and real property used i n trade or
business and short-term noninterest—bearing

26

-

Footnotes for tablesi i n this release - flnnt.innari
Government obligations issued on o r after Mar c h 1,
1941, on a discount basis* If the property us e d
in trade or business has bee n held for more than
6 months, special treatment of the gain or loss is
provided as described in note 15 above.
1 7 / "Dividends, domestic corporations" con­
sists of dividends received fro m domestic corpo­
rations subject to income taxation under chapter 1
o f the Internal Revenue Code. This item is re­
ported in column 2, schedule E, page 2, F o r m 1120,
and is the amount used f o r computation of the
dividends received credit.
1 8 / "Dividends, foreign corporations" is the
amount reported in column 3, schedule E, page 2,
F o r m 1120, and is not used for the computation of
dividends received credit.
1 9 / Where the amount reported as "Cost of
goods sold" o r "Cost of operations" includes
items of deductions such as depreciation, taxes,
etc., these items ordinarily are not transferred
to their specific headings.
However, an exception
is sjade w i t h respect to amounts reported in costs
and identifiable as "Amortization of emergency
facilities" and "Amounts contributed under pension
plans, etc.," such amounts being transferred to
the respective deduction items.
20/ Amount shown as "Repairs" is the cost of
incidental repairs, including labor and supplies,
w h ich do not add materially to the value o f the
property or appreciably prolong its life.
21/ The Item "Taxes paid" excludes (1)
Federal income tax and Federal excess profits
taxes, (2) estate, inheritance, legacy, succession,
and gift taxes, (3) income taxes paid to a foreign
country or possession of the United States if
portion is claimed as a tax credit, (4) taxes as­
sessed against local benefits, (5) Federal taxes
paid o n tax-free covenant bonds, and (6) taxes re­
ported in "Cost of goods sold" and "Cost of opera­
tions."

any

22/ The deduction claimed for "Contributions
or gifts" is limited to 5 percent o f net income as
computed without the benefit of this deduction.
23/ Amount shown as "Amortization" is the de­
duction provided by section 124 of the Internal
Revenue Code as amended w i t h respect to the amor­
tization of the cost of emergency facilities necessaiy for national defense.
24/ "Amounts contributed under pension plans,
etc.," consists of deductions claimed under sec­
tion 2 3 (p) of the Internal Revenue Code for
amounts contributed by employers under pension,
annuity, stock-bonus, or profit-sharing plans,
or other deferred compensation plans.
25/ The net operating loss deduction tabu­
lated herein is the amount originally reported,
consisting only of the net operating loss carry­
over reduced by certain adjustments, and does not
take into account whatever revisions may subse­
quently be made as the result of
carry-back
of net operating loss from the two succeeding tax
years. In general, the net operating loss c a n y over is the sum of the net operating losses, if
any, for the two preceding taxable years. If
there is net income in the first preceding tax­
able year, the net operating loss for the second
preceding taxable year is reduced to the extent
such loss has been absorbed by such net income.

any

2 6 / Amou n t shown as "Compensation of of­
ficers"
excludes compensation of officers of
life insurance companies w h ich file F o r m 1120L.
Da t a not available.
27/

See note 26.

28/

Compiled net loss o r deficit.

2 9 / Compiled n e t lo s s after income taxpayment.
30/ "Number o f returns w i t h balance sheets"
excludes returns o f inactive corporations and
returns o f active corporations for w h i c h balance
sheet data are lacking.
5 1 / Amou n t shown as "Cash" includes bank
deposits.
32/ A m o u n t shown as "Investments, Govern­
m e n t obligations" consists of obligations of the
United States or agency or instrumentality
thereof as w e l l as obligations o f States, Terri­
tories, and political subdivisions thereof, the
District of Columbia, and United States posses­
sions. See note 33.
33/ Whe r e investments are not segregated as
between "Government obligations" and "Other,"
the entire amount is included i n "Other invest­
ments."
5 4 / Amount shown as "Capital assets" con­
sists of (1) depreciable tangible assets such as
buildings, fixed mechanical equipment, manufac­
turing facilities, transportation facilities,
and furniture and fixtures, (2) depletable tan­
gible assets — natural resources, and (3) in­
tangible assets such as patents, franchises,
formulas, copyrights, leaseholds, goodwill, and
trade-marks. (Amounts in tables 3 and 4 of
this release exclude land.)
35/ Assets and liabilities are tabulated
as of December 31, 1948, o r close of fiscal year
nearest thereto. Total assets classes are based
on the net amount of total assets after reserves
for depreciation, depletion, amortization, and
b a d debts. Adjustments are made in tabulating
the data as follows:
(1) Reserves, when shown
under liabilities, are used to reduce corre­
sponding asset accounts, and "Total assets" and
"Total liabilities" are decreased b y the amount
of such reserves, and (2) a deficit in surplus,
shown under assets, is transferred to liabil­
ities, a n d "Total assets" and "Total liabilities,"
are decreased b y the amount of the deficit.
56/ A m ount shown as "Surplus and undivided
profits" consists of Daid—in or capital surplus
and earned surplus and undivided profits. See
note 37.
57/ A m ount shown as "Deficit" consists of
negative amounts of earned surplus and undivided
profits.
3 8 / Included in the total, but not in the
detail, under "Income tax," is $177,000 of tax
reported o n returns w i t h no net income. See
note 3.

TREASURY

DEPARTM EN

406
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release*

m

m

x

m

hshspafers,

Tuesday» September 11»

19$X*

Tbs Secretary of the Treasury announced last evening that the tenders for
$1,200,000,000, or thereabouts, of 9l~day Treasury bills to be dated September 33 and
to mature December 13, 12S>1, which were offered on September 6, were opened at the
Federal Reserve Banks on September IX)*
The details of this issue are as follows«
Total applied for ** $1,213,013» 000

Total accepted

Average Price

«*■ 1,202,609,000

(includes $161*,138,000 entered on a
non-competitive basis and accepted in
full at the average price shewn below)
- 99.56!*. Equivalent rate of discount approx* 1.61*6# per annua

Range of accepted competitive bids«
* 99.610 Equivalent rate of discount approx* 1.51*3$ per annua
* 99.583
*
n
n
n
«
i#65ojg «
«

High
IP

(71 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
Mia#
San Francisco

$

|

tom.

23,866,000
1,397,280,000
26,728,000
70,656,000
36,535,000
20,71*6,000
38?,37b,000
19,1*21,000
9,050,000
1*7,920,000
50,893,000
20,51*1*,000

$1,913,013,000

21,336,000
816,937,000
10,81*8,000
39,565,000
31,763,000
20,152,000
150,772,000
16,599,000
9,ogo$ ooo
28,672,000
37,996,000
18,919,000

$1,202,609,000

TR EA SU R Y D EPA R TM EN T
Information Service

WASHINGTON, D .C

REEEASE M O R N I N G NEWSPAPERS,
Tuesday, S e p t e m b e r II, 1951

407

■ 2809

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 , 2 0 0 ,000,000, or thereabouts, of 9 1 - d a y T r e a s u r y bills
to be dated S e p t e m b e r 13 a nd to m a t u r e D e c e m b e r 13, 1951, w h i c h were
offered on S e p t e m b e r
, were o p ened at the F e d e r a l R e s e r v e B a n k s on
September 10.

6

The details

of this issue are as follows:

Total a p p l i e d for
Total a c c e p t e d

Average Price

013,000
1 202 609,000

SI,QIP,
,
,

.
(includes $ 1 6 4 , 1 3 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
basis and a c c e p t e d in f ull at
the a v e rage price s h own below)
99.584 E q u i v a l e n t rate of d i s c o u n t approx.
1 . 6 4 ^70 pe r a n n u m

Range, of a c c e p t e d c o m p etitive bids
High

9 9 * 8 1 0 E q u i v a l e n t rate
. ^ $
9 9 . 5 8 3 E q u i v a l e n t rate
.
$

1 5 3
1 650

Low

71

(

of d i s c o u n t a p p r o x
p er a n n u m
of d i s c o u n t a p p r o x
per annum

percent of the a m o u n t b id for at the low price was

Feô eral R e s er ve
Dia tr p +-

1

Bos ton
Nov fork
Ili ladelphia
0.LO veland
H amend
r Janta
y u C",
Si;,.Louis
liinneapoils
H cas City
Delj.
San Francisco

$

10

T o tal
A p p l i e d for

Total
Accepted

23,866,000
1 ,397,280,000
26,728,000
70,656,000
•36 ,535-, 000

21,336,000
816,937,000
10,848,000

39,665,000
31 ,763,000.
20,152,000
150,772,000

20,746,000
189,374,000
19,421,000
,
47,920,000
50,893,000
20,544,000

0’0

16,599,000
,
,
,
,

9 050,000

TOTAL

accepted)

1 913,013,000

$ ,

0 O0

9
28
37
18

050,000
672,000
996,000
919,000

1 202,609,000

$ ,

TREJis e lla le ? 1

STATUTORY DEBT LIM ITATIO N
AS OF A u g u st 31, 1951

Washington,

^

I 95J

lifm
Section 21 o f Second Liberty Bond Act, as amended, provides that the face amount o f o b lig a tio n s issued
under au th o rity of that Act, and the face amount of o b lig a tio n s guaranteed as to prin cip al and interest by the
United sta te s (except such guaranteed o b lig a t io n s as may be held by the secretary o f the Treasury), "shall not
exceed in the aggregate $275,000,000,000 (Act o f June 26, 1946; U.S.C., t i t l e 31 , sec. 757b), outstanding at
any one time. For purposes o f t h is se ction the current redemption value o f any o b lig a tio n issued on a discount
b a sis which is redeemable p r io r to m aturity at the option o f the holder sh a ll be considered as i t s face amount.'
The follow ing ta b le shows the face amount o f o b lig a t io n s outstanding and the face*amount which can still
be issued under th is lim ita tio n :
Total face amount that may be outstanding at any one time

$275,000,000,000

Outstanding
O b lig a tio n s issued under second Liberty Bond Act, as amended
1nterest-beari

ng:
Treasury b i l l s ................................
C e r t if ic a t e s o f indebtedness.........
Treasury n o t e s .............. ........ ........
Bonds Treasury......................................
Savin gs (current redemp. value)
D epositary............................ .
Armed Forces Leave .....................
Investment s e r ie s .......................
Special Funds C e r t ific a t e s o f indebtedness
Treasury n o te s.....................
Total inte re st-b e arin g

Matured, i nte re st-ce ase d ...............

$ 1 5 ,011,620,000
14,739,926,000
3 9 , 050 , 809 ,400$ 6 8 , 802 ,355,^00
78,827,280,550
57,509,^ 09,00 7
333,716,500
27,729,275
13 ,5 22,2 46,00 0 1 5 0 , 220 , 3 8 1 ,3 3 2
21.283.915.000
1 3 . 862 .537.000 3 5 ,1 4 6 , 4 5 2 ,000
......................
25 ^ , 16 9 , 18 8 ,732
......................
4 5 7 , 621,430

Bearing no interest:
War savin gs stamps ..........................
Excess p r o f it s tax refund bonds....

^6,838,927

2 , 29^,322

Special notes o f the United States:
In te rn a t’l Monetary Fund s e rie s ...
T o t a l.......................................... ........

1,293,000,000
1,34 2,13 3,249
....................
255,968.9^3,^11

Guaranteed o b lig a t io n s (not held by Treasury):
Interest-bearin g:
Debentures: F.H . a . .............................
Demand o b lig a tio n s: C.C .C ................. ......
Matured, interest-ceased .............................

3 0 , 601,086
3 0 , 601,086
1,80 3,32 5
3 2 ,4 o4 ,4 l l
256.001.3^7,822

Grand to ta l o u tsta n d in g ........ v........... ........................................
Balance face amount of o b lig a tio n s issuable under above au th ority

1 8 .Q Q 8 .6 5 2 .X 7 8
I 95 I

Reconcilement with statement of the P ublic Debt Aiag„.
(D a ily Statement o f the United sta te s T r e a s u r y ,S e p t .
.

4 ,

19$1)

(bate)

Outstanding Total gro ss pu blic debt .......................................................................... ............
Guaranteed o b lig a tio n s not owned by the Treasury ...............................................

256,6*44,152,296

Total gross pu b lic debt and guaranteed o b lig a t io n s ...........................................
Deduct - other outstanding pu blic debt o b lig a tio n s not subject to debt lim ita tio n

256,676,556,707

12.*K4.4L1_

675,208,88!

256,001,3^7,822

STATUTORY DEBT LIMITATION
AS OF AUGUST 31. 1951

September 11, 1 $ Ö 9

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; U0SoC0, title 31, sec0 757b),
outstanding at any one time 0 For purposes of this section the current redemption
value of any obligation issued on a discount basis which is redeemable prior to
jnaturity at the option of the holder shall be considered as its face amount0»
The following table shows the face amount of obligations outstanding and the
face amount which can still be issued under this limitation:
$275,000,000,000
Total face amount that may be outstanding at any one time
Outstanding
Obligations issued under Second Liberty Bond Act, as amended
Interest-bearing:
Treasury bills,,0,00,0, 000000©o$ 15,011,620,000
Certificates of indebtedness © 14-,739,926,000
Treasury notes ©©© -, ©©©© ©©,,, ,©© 39.050.809.400 ■ ,802,355,400

30
0

Bonds Treasury,,oo,oo,,ooooooo ,, oo 78,827,280,550
Savings (current redempt,value) 57,509,4-09,007
333,7X6,500
Depositary ©o,,oo,,o,,o,o.
,
275
Armed Forces L e a v e ,©I, I- ,
13 j 522^246^00Q 150,220,381,332
Investment series0

27 729

Special Funds Certificates of indebtedness 0 21.283.915.000
OO^OOOOGO
13.862.537.000 35.146.4.52.000
Treasury notes©
.,, ,
254,169,188,732
Total interest-bearing,
'
,,
457,621,430
Matured, interest-ceased,.

09

0,0

Bearing no interest:
46,838,927
Yiar savings stamps,,0o©o,.,, >,,,,
2,294,322
Excess profits tax refund bonds
Special notes of the United States:
Intemat’l Monetary Fund series
1.293.OOP.OOP
1.342.133.249
Total,, 30, ,30,, ,
255,968,943,411
,,,ooo,

,0

00

0 000

00,000

Guaranteed obligations (not held by Treasury):
Interest-bearing:
Debentures: F,H,A© >,o-,,,o,o,©,,
30,601,086
Demand obligations: CoCoC,
________-_____
, ,
,
Matured, interest-ceased,

30 ,601,086
1.803.325
32,404,411
Grand total outsuandmgoo,o,,,,, '--coo,0, 0,00,00,00
2^d ^001j 3^7j^822
Balance face amount of obligations issuable under above authority,,, 18.998.652.178
Reconcilement with Statement of the Public Debt - August 31, 1951
(Daily Statement of the United States Treasury, September 4, 1951)
Outstanding Total gross publxc debt 00,ooo-oooooo,,,,,0000,,,,00,0,,000000,000 236,644,152,296
Guaranteed obligations not own^d by the Treasury0,,,o©,00,0,000000
32.404.411
Total gross public debt and guaranteed obligations0o,00,00, 00,0000 256,676,556,707
Deduct - other outstanding public debt obligations not subject to
OOOOOOOOO'IO *o000000
675.208.885
debt limitation
256,001,347,822
S-2810

00 0000 000,0

- 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 hZ and 117 (a) (1) of the Internal Revenue Code,

as amended by Section XX$ 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 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 shalj
be final.

Subject to these reservations, non-competitive tenders for '¿200,000

or less without stated price from any one bidder will bo accepted in full at thOj
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

September 20. 1951

> ^

cas^ or other immediately avaij

ffic
able funds or in a like face amount of Treasury bills maturing Septembe^2Q fH
Cash and exchange tenders will receive equal treatment.

Cash adjustments will

made for differences between the par value of maturing bills accepted in exchan
and the issue price of the new bills.
The income derived 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
special treatment, as such, under the Internal Revenue Code, or laws
or supplementary thereto*
gift

The bills shall be subject to estate,

have a

amendator

inheritance,

or other excise taxes, whether Federal or State, but shall be

exempt fr°

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

7\

&

TREASURY DEPARTMENT
Washington

?F//

FOR RELEASE, MORNING NEWSPAPERS,
Thursday, September 13» 1951
*
jpr

The Secretary of the Treasury, by this public notice, invites tenders for
o m a h a A A A . or thereabouts, of
^l»20Q»Qyl
Q »S.
yy—
—

91

—

-day.Treasury bills, for cash and
in the amount of I 1.000.902.000.

in exchange for Treasury bills maturing

September 20« 1951 __> A °
issue(* on
■
pTf
a discount basis under competitive and non-competitive bidding as hereinafter
provided»
Yd.ll mature
interest.

The bills of this series will be dated
Tter.amber PO- 19^1

,

September 20a

.*

when the face amount vri.ll be payable without

They vdll be issued in bearer form only, and in denominations of

$1,000, $5,000, $10,000, $100,000, $500 ,000 , and $1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the
Daylight Saving
closing hour, two o’clock p.m., Eastern & a x à s x à time, Monday, September 17, 1951.
Tenders will not be received at the Treasury Department, Washington.

Each tender

must be for an even multiple of $1,000, and in the case of competitive tenders
the price offered must be expressed on the basis of 100, with not more than three
decimals, e. g., 99.925.

Fractions may not be used.

It is urged that tenders

be made on the printed forms and forwarded in the special envelopes which will
be supplied by Federal Reserve Banks or Branches on application therefor.
Others than banking institutions will not be permitted to submit tenders
except for their own account.

Tenders will be received without deposit from

incorporated banks and trust companies and iron responsible and recognized
dealers in investment securities.

Tenders from others must be accompanied

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

TR EA SU R Y D EPA R TM EN T
Information Service
RELEASE M O R N I N G NEWSPAPERS,
Thursday, S e p t e m b e r 13, 1931 »

WASHINGTON, D .C .

S-2811

The S e c r e t a r y of the Treasury, b y this public notice, invites
tenders for $ 1 , 2 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 9
for cash and in exc h a n g e for T r e a s u r y bills m a t u r i n g S e p t e m b e r 20,
1951 , in the a m o u n t of $ 1 , 0 0 0 ,9 0 2 ,0 0 0 , to be issu e d on a d i s c o u n t
basis under comp e t i t i v e a nd 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 bills of this series w i l l be d a ted S e p t e m b e r 20, 1951 9
and will m a t u r e D e c e m b e r 20, 1951, w h e n the face a m o u n t w ill be
payable w i t h o u t interest.
T h e y w i l l be i s s u e d 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 , 0 0 0 , $ 1 0 ,0 0 0 , $ 1 0 0 , 0 0 0 , $ 5 0 0 , 0 00 ,
and $ 1 ,0 0 0 ,0 0 0 (maturity 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 Bra n c h e s
up to the c l o s i n g hour, two o ’c l ock 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, S e p t e m b e r 1 7 , 1951.
Tenders w i l l not be r e c e i v e d at
the Treasury D e p a rtment, W a s h i n g t o n .
E a c h tender m u s t be for a n
even multiple of $ 1 , 0 0 0 , and in the case of comp 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 o t more
than three decimals, e. g., 99.925.
F r a c t i o n s m a y not be used.
It
is urged that tenders be m a d e on the- p r i n t e d forms and f o r w a r d e d in
the special env e l o p e s w h i c h w i l l be sup p l i e d b y F e d e r a l R e s erve Banks
or Branches on a p p l i c a t i o n therefor.
Others than b a n k i n g inst 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 except for their o wn account.
Tenders w i l l be r e c e i v e d
without deposit from Incorpora/bed banks and trust companies and from
responsible a nd r e c o g n i z e d dealers in inve s t m e n t securities.
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 bills a p p l i e d for, unless the tenders are
accompanied b y a n express g u a r a n t y of p a y m e n t by a n i n c o r p o r a t e d b a n k
or trust company.
Imme 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 at
the Federal R e s e r v e B a n k s and Branches, f o l l o w i n g w h i c h p u blic
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 vised 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 reserves the r i ght to a c c e p t or
reject any or a ll tenders, in whole or in part, and his a c t i o n in
any such respect shall be final.
Subject to these reservations,
non-competitive tenders for $ 2 0 0 ,0 0 0 or less w i t h o u t stated price
from any one b i d d e r w i l l be a c c e p t e d in full at the av e r a g e price

2
(in three d e c i mals) of a c c e p t e d comp 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 Reserve B a n k on S e p t e m b e r 20, 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 amount of
T r e a s u r y bills m a t u r i n g S e p t e m b e r 20, 19J1*
Cash and exchange
tenders w i l l re c e i v e e q u a l treatment.
Cash a d j u s t m e n t s wil l be
m a d e .for d i f f e r e n c e s b e t w e e n the par 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 price of the n e w bills.
The income d e r i v e d f rom T r e a s u r y bills, w h e t h e r interest or gain
fro m the sale or o t her d i s p o s i t i o n of the bills, sha.ll not have any
exemption, as such, and loss f r o m the sale or other d i s p osition of
T r e a s u r y b i lls shall not h a v e a n y s p e cial treatment, as such, under
the I n t e r n a l R e v enue Code, or laws a m e n d a t o r y or suppl e m e n t a r y
thereto.
The bills shall be subject to estate, in heritance, 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 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 principal
or interest, th e r e o f by a n y State, or a n y of the p o s s e s s i o n s of the
U n i t e d States, or b y 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 bills are
o r i g i n a l l y sold by the U n i t e d States shall be c o n s i d e r e d to be
interest.
U n d e r S e c tions 42 and 117 (a) (1) of the Internal 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 issu 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 erwise d i s p o s e d of, and such bills are excluded from
c o n s i d e r a t i o n as c a p ital assets.
A c c o r d i n g l y , the owner of Treasury
b i lls (other t h a n life i n s u rance companies) issu e d h e r e u n d e r need
include in his income tax r e t u r n only the d i f f e r e n c e b e t w e e n the
p r ice p aid for such bills, w h e t h e r on or 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 either upon
sale or r e d e m p t i o n at m a t u r i t y d u r i n g the taxable y e a r for which the
r e t u r n is made, as o r d i n a r y 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 No. 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 bills a nd govern the
c o n d itions of their issue.
Copies of the c i r cular m a y be obtained
from a n y F e d e r a l R e s e r v e B a n k or
Branch.

oOo

S e c r e ta r y Snyder s a id to d ay , upon h e a rin g the announcement
c ^ t h e r e s ig n a t io n o f S e c r e ta r y M arsh all:
’’The p r iv i le g e which I have had o f c lo se
a s s o c i a t i o n w ith S e c r e ta r y M arsh all in n a tio n a l
a f f a i r s has in s p ir e d the h ig h e st p o s s ib le
esteem and r e s p e c t f o r him on my p a r t .
” 1 am su re t h i s i s tru e o f a l l who have
worked w ith him in h i s c a p a c i t i e s a s ^ h ie f
o f Stajirf, a s S e c r e ta r y o f S tate^ ap d -ewsd a s
S e c r e ta r y o f D efen se.
"H is su c c e sso r S e c r e ta r y L o v ett i s
e x c e lle n t ly equipped to c a r ry forw ard the
program o f the D efense D epartm ent.”

TR EA SU R Y D EPA R TM EN T
Information Service

Wa s h i n g t o n ,

d.c .

I M M E D I A T E RELEASE,

Wednesday, S e p t e m b e r 12, 1 9 5 1 .

S -2812

S e c r e t a r y S n yder said today, u p o n h e a r i n g the
a n n o u n c e m e n t of the r e s i g n a t i o n of S e c r e t a r y
Marshall:
"The pr i v i l e g e w h i c h I hav e h a d of
close a s s o c i a t i o n w i t h S e c r e t a r y M a r s h a l l
in n a t i o n a l affairs has i n s pired the h i g h e s t
p o s sible e s t e e m and r e s pect for h i m on m y
part.
"I am sure this is true of all who
h ave w o r k e d w i t h h i m in his capacities as
Chief of Staff, as S e c r e t a r y of State and
as S e c r e t a r y of D e f e n s e .
"His suc c e s s o r S e c r e t a r y Lovett is
e x c e l l e n t l y eq u i p p e d to carry fo r w a r d the
p r o g r a m of the D e f e n s e Department."

oOo

~7

M

“ ( K lW

/

o

P/3

^Ofi'IMMEDIATE RELEASE,
g«an-hftrriber 3 ^ ^ .1 9 5 1 __ ,__
/«J?
r
y

The Bureau of Customs announced today,preliminary figures showing the
quantities of wheat and wheat flour/lffife%i, 1or^fetldrawn 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, l?h2,
for the 12 months commencing May 29, 1951, as follows;

Country
of
Origin

Wheat
Established s
Imports
Quota
tVby 29, 19&, to
(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

iSept* 31, 19?1
(Bushels)

795,000
-

—
—
—

—

mm

100
—
100
*100

«.
mm-

mm

:

mm

mm

—

—

—
*
1,0 0 0
100
100

100
100
800,000

(Pounds) ”
3,815,000
2 k ,00©
13,0 0 0
1 3,0 0 0
8,000

(Pounds)
3,519,226

—
—
lOyk O O
mm

62

75,000
mm

mm

*
100
2,000
100
1,0 0 0
100

Wheat flour, semolina,
crushed or cracked
wheat, and similar
wheat products
Established : Imports
Quota
; May 29, 19^1,
s to Sept, H , ■

1,000
5,0 00
5,0 0 0
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

mm
■ -

mm

mm
-

wi
mm

mm

3.86
115

"
mm

UUh,78o

—
h,000,000

-•
37557155

TREASURE DEPARTMENT
Washington

416

immediate RELEASE,
Thursday, September 13, 1951

S-2813

The Bureau of Customs announced todaypreliminary figures showing the

quantities of wheat and wheat flour authorized to be entered, or withdrawn from
warehouse, for consumption under the import quotas established in the Presidents
proclamation of May 28, 19Ul, as modified by the Presidents proclamation of
April 13, 19b2, for the 12 months commencing May 29, 1951, as follows:

Wheat
Country
of
Origin

Established
Quota
/

(Bushels)

795,000
Canada
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
«1
Panama
Uruguay
Poland and Danzig
Sweden
«
Yugoslavia
Norway
«1
Canary Islands
Rumania
1,000
Guatemala
100
Brazil
100
Union of Soviet
Socialist Republics
100
Belgium
100
800,000

:
Imports
:May 29* 1951* to
Sept. 11, 1951
(Bushels)
Will,780
-

-

«H»

-

-

3,815,000
2U,000
13,000
13,000
8,000
75,000
1,000

5,ooo
5,000
1,000
1,000
1,000

iU,ooo

3 , 519,226
10,h00
-

62
-'
-

-1
«•

-

mm

2,000
12,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000

mm

mmm

mm

-

-

-

mm

•

Wheat flour, semolina,
crushed or cracked
wheat, and similar
wheat products
Established :
Imports
Quota
:May 29* 1951*
;to Sept. 11, 19
(Pounds)
(Pounds)

-

m

-

—

386
-

115
mm
mm

.

-

«
—
~
a.
mm

mm

«M

a.

mm

-

-

iiWt,780

h,ooo,ooo

3,530,189

•

immediate r e l e a s e

September I X 195l
(bfr

r

13,

The Bureau o f Custom s announced to d a y p r e lim in a r y f ig u r e s show ing th e
im ports f o r consum ption o f com m odities w it h in q u o ta lim it a t io n s p ro v id e d
fo r under th e G e n e ra l Agreem ent on T a r if f s and T rade, from th e b e g in n in g
of the q u o ta p e rio d s to Septem ber 1 , 1951, in c lu s iv e , as fo llo w s :

Commodity

P e rio d and Q u a n tity

U n it
of

im p o rts a s o f
S e p t. 1 , 1951

Quantity

Whole m ilk , fr e s h o r
sour • •• • •• •• • •• • •• .*«

C a le n d a r y e a r

3 , 000,000

G a llo n

9,855

Cream ............

C a le n d a r y e a r

1 , 500,000

G a llo n

1,U99

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

J u ly 16, 1951
O ct. 31, 1951

5 , 000,000

pound

h, 80U

29,239,808

Pound

Q uota f i l l e d

White o r I r i s h P o ta to e s:
c e r t ifie d seed ........... 12 months from 15 0 , 000,000
S e p t. 15, 1950 60 , 000,000
o t h e r .........................

Pound
Pound

Quota f i l l e d
Q uota f i l l e d

5 , 000,000

Pound

Quota f i l l e d

G a llo n
G a llo n
G a llo n

Q uota f i l l e d
Quota f i l l e d
Q uota f i l l e d

F ish , fr e s h o r fro z e n ,
f ille t e d , e t c . , cod,
haddock, h ake, p o llo c k ,
C a le n d a r y e a r
cusk, and r o s e f is h . . .

W alnuts

C a le n d a r y e a r

Petroleum and p e tro le u m
products .....................

C a le n d a r y e a r
V ene zuela
2 613 , 137,0 96
822 , 65U , 271
N e th e rla n d s
O th e r Countries 9 6 3 ,^ 9 ,3 3 3

(1 )

The p r o v is o to ite m 717 (b ) li m i t s th e im p o rts f o r consum p tion a t
the q u o ta r a t e to 21,929,856 pounds d u rin g th e f i r s t n in e months
o f the c a le n d a r y e a r.

(1 )

418

TREASURY DEPARTMENT

Washington

IMMEDIATS RELEASE
Thursday, September 13, 1951

S-2814

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 September 1, 1951, inclusive, as follows:

Commodity

Period and Quantity

Whole milk, fresh or
SOUr o o o o o e t o n a n o r t o o o o o Calendar year

Unit
of
Quantity

Imports as of
Septo 1, 1951

3,000,000

Gallon

9,855

9o $0 Calendar year . 1,500,000

Gallon

1,499

5,000,000

Pound

4,804

29,239,803

Pound

Quota filled

White or Irish Potatoes:
certified seed „„oocoo 12 months from 150,000,000
other OO"’0O"' 3"»OOOOOOOO Septo 15, 1950 60 ,000,000

Pound
Pound

Quota filled
Quota filled

WalntLtS 000030999009900-0 Calendar year

Pound

Quota filled

Gallon
Gallon

Quota filled
Quota filled

Gallon

Quota filled

Cream

Butter OOOOOOOOOOOOOOO'JO July 16, 1951
Octo 31, 1951
ELsh, fresh or frozen,
filleted, etc®, cod,
haddock, hake, pollock 9
cusk, and rosefish a o o Calendar year

(:

5,000,000

Petroleum and petroleum
produC bs 0000 .
^oodooooo Calendar year
Venezuela
2,613,137,096
Netherlands
8 22,65-4,271
Obher
Countries
963,429,333

(1)

The proviso to item 717 (b) limits the imports for consumption at
the quota rate to 2 1 ,929,856 pounds during the first nine months
of the calendar yearQ

immed i at e r e l e a s e
S e p te m b e r

IsL 195l
IS

The B ureau o f Custom s announced to d a y p r e lim in a r y f ig u r e s sh ow in g
the in p o r t s f o r consum p tion o f com m odities on w hich q u o ta s were
p re sc rib e d b y th e P h ilip p in e Trade A c t o f 1 9k&} from Jan u ary 1, 1951,
to Septem ber 1 , 1951* in c lu s iv e , a s fo llo w s :

P rod u cts o f th e
P h ilip p in e s

•
•
:
:
•

B uttons ......... .

E s t a b lis h e d Quota
Q u a n tity

850,000

U n it o f
Q u a n tity

•
:
:
•
•

In p o r t s a s o f
S e p t. 1 , 1951

G ro ss

U00,672
7 6 2 , 2 U0

C ig a rs ...................

200,000,000

Number

Coconut O i l ...........

UU8,000,000

Pound

83,002,739

C o r d a g e .............. ..

6,000,000

Pound

, 3,26U,8 o5

R ice .......................

i,oU o,ooo

Pound

1,90U,000,000

Pound

6 ,50 0,00 0

Pound

-

( r e fin e d .........
Su gars

1,21*6,877,336

(u n re fin e d . . . .
Tobacco

8U%0Ul

TREASURY DEPARTMENT
Washington

420

immediate release

Thursday, September 13. 1951

S-2815

The Bureau of Customs announced today preliminary figures showing
the imports for consumption of commodities on which quotas were pre­
scribed by the Philippine Trade Act of 1946, from January 1, 1951,
to September 1, 1951, inclusive, as follows«
Products of the
Philippines

•
:
s Established Quota t Unit of
t
Quantity
t
Quantity
♦

•

•

0

Buttons •'*#«*«»•*

850,000

Cigars ••••+»•••*•
Coconut Oil »«•«•#

#
s Imports as of
: Sept. 1, 1951
•
#

Gross

400,672

200,000,000

Number

762,240

448,000,000

Pound

Cordage

6,000,000

Pound

Rice...

1 ,0 4 0 ,0 0 0

Pound

(refined «•»..<
Sugars
(unrefined
Tobacco

1,904,000,000

Pound

6,500,000

Pound

oOo

83,002,739
5,264,805

1,246,877,336
84,041

COTTON WASTES
(In pounds)
COTTON CARD STRIPS made from cotton having a staple of less than 1 - 3 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

:
•
•

TTrvi+.p H
ficrdofll
Hanfldn ___ ...........a*
British Indi a
T\Tpt.V>pt*1and f?_____ _
Switzerland *.»•*.#.*#♦**
Rpl 0"inra___
Japsn •
***■ + + +
China
PlfrvTrh ^ ^ 1_
Cuba • « * » « • • * ■ • * * + . + + # - *
py ^
#
♦«-w +*
X
«##•«#%**•••••##•#

1/

Established
TOTAL QUOTA

• Total imports
; Sept. 20, 1950 to
: sent. 1-, 1951

1*,323,1(57
239,690
227,l»20
69,627
68*2l»0
l»li,388
38,359
3l»l,535
17,322
8,135
6,51*1»
76,329
21,263

1,^1,152
107,191
68,155
67,200

5,»•87,509
Included in total imports, column 2

Prepared by the Bureau of Customs

Imports
: Established :
Sept.
20^ 1950
33-1/3?
of
:
:
.to
Sept.
1, 1951
Total
Quota
:
:
l,l»ljl,l52
68,155
-■
1,851»
-

21»,156
'-

1, ¡¿1,152
75,807
22,71*7
11»,796
12,853
25,1»1»3
7,088

1,709,708

1,599,886

1,535,317

_1,85»
•»
—
_

21»,156
—

1/

T ^ 6 T
tioq.3tixt[S'B/4
r,-KtaHj,HVtTgg x w n g i

I M M E D I A T E RELEASE
S e p te m b e r ~3J.f 195 1

t Z

Jaqmaq-das

^ A B p s j m y ,

asvaiaa aivi a s M M i

1 6 ^

- ^ ¡ r

/

c-

Prelim inary data on imports fo r consumption o f cotton and cotton -waste chargeable to the quotas
e sta b lish e d by the P r e s id e n t's Proclamation of September 5, 1939, as amended

COTTON (other than linters) (in pounds)

Country of Origin

Cotton under 1-1/8 inches other than rough or harsh under 3/4"
Imports Sept. 20^950 to September 1. 1951. inclusive
Established Quota
Country of Origin
Established Quota
Imports

Imports

752
Honduras ......... .
Egypt and the Anglo871
Paraguay
.....
....
.
783,816
2,174
Egyptian Sudan ....
124
Colombia .........
247,952
161,784
Peru . . ....
195
Iraq
......;.......
2,003,483
British India ....
2
,2
40
British
East
Africa
.
.
.
1,370,791
China ...........
71,388
Netherlands
E.
Indies
8,883,259
37,669
Mexico .........
Barbados ..;.......
618,723
602,956
Brazil ..........
21,321
l/0ther
British W. Indies
Union of Soviet
5,377
Nigeria
.
.
.
;.......
Socialist Republics
475,124
16,004
2/0ther
British
W.
Africa
5,203
Argentina ........
689
237
'- ¿/Other French Africa ,..
Haiti.... *.....
Algeria
and
Tunisia
.
.
.
9,333
Ecuador
.
1/ Other than Barbados, Bermuda, Jamaica, Trinidad, and Tobago.
2/ Other than Gold Coast and Nigeria.
¿/ Other than Algeria, Tunisia, and Madagascar.
^
Cotton 1-1/8* or more, but less than 1-11/16'»
Cotton, harsh or rough, of less than 3/4*
Imports Feb. 1, to Septal. 1^51
Imports Sept. 20,1950 to Sept« 1, 1951
Imports
Established Quota (Global)
Imports
Established Quota (Global)
70, 000,000

il,003,435

45,656,420

Cotton, harsh or rough (except cotton of perished
staple, grabbots.and cotton pickings) of l-3/l6
inches or more but less than 1—3/8 inches
Imports July 5« 1951« to Sept* 1, 1951________
Established Quota (Global)
Imports
50,411
1,500,000

Quota filled

IM M E D IA T E

Thursday

R ELEA SE

,September-

13

Washington

, 195>1

S-2816

Preliminary data on imports for consumption of cotton and cotton waste chargeable to the quotas
established by the President's Proclamation of September 5, 1939, as amended
COTTON (other than linters) (in pounds)

Cotton under 1-1/8 inches other than rough or harsh under 3/U"
Imports Sept. 20, 1950 to September 1, 1951, inclusive
'
Country of Origin
Established Quota
Imports
Country of Origin
Established Quota
Imports
Egypt and the AngloHonduras.... ........
752
783,816
Egyptian Sudan ....
Paraguay ..............
2 ,171*
871
P e r u ............. .
Colombia ........... T T T .
21*7,952
12It
l6l,78U
British India .......
2,003'ii83
Iraq ................ .
195
China ..............
British East Africa
1,370,791
2,2ltO
Mexico ............
8,883,259
37,669
Netherlands E. Indies .
71,388
_
i»
Brazil ............
602,956
Barbados ............
618,723
.■
V .
Union of Soviet
«
l/other British W. Indies
21,321
Socialist Republics
” Nigeria ........ .... .
hl5,l2h
5,377
Argentina........
5,203
2/other British w. Africa
l6,Q0it
Haiti ......... .
3/other French Africa ....
237
689
Ecuador ...........
" Algeria and Tunisia ...
9,333
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/U"
Cotton 1-1/8» or more, but less than I-11/16»
Imports Sept. 20, 1950 to Sept. 1, 1951
Imports Feb. 1, to Sept. 1 , 1951
1
Established Quota (Global)
Imports
Established Quota (Global)
Imports *
70,000,000
31,003,1*35
1*5,656,1+20
Quota filled
mm

mm

Cotton, harsh or rough (except cotton of perished
staple, grabbots, and cotton pickings) of 1- 3/ 16"
inches or more but less than 1-3/8 inches
Imports July 5, T95l, to SeprETT., 1951
Established Quota (Global)
Imports

1 ,5 0 0 ,0 0 0

~~

/

5 o,itii"

-

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 33-1/33 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
China •
Egypt
Cuba ••••».... .
Germany
Italy

y

: Total imports
: Sept. 20, 1950 to
: Sept. 1, 1951

4,323,457
239,690
227,420
69,627
68,240
44,338
38,559
341,535
17,322
8,135
6,544
76,329
21,263

1,441,152
107,191
68,155
67,200

5,482,509

1,709,708

Included in total imports, column 2.

Prepared by the Bureau of Customs

—

—
1,854
—
—
—
24,156

Imports
*y
: Established :
s
33-1/3$ O f ! Sept« 20, I95 O
: Total Quota : to Sept. 1, 1951'

1 ,441,152
—
75,807
—
22,747
14 ,796
12,853
—
—
—
25,443
7,088

1,599,886

1,441,152
—
68,155 "
—
—
1,854
—
—
—
—
24,156

1,535,317

'È m m s m m B

x*btà

mtt % ù

Friday, September 14, ' 1951,
&s*m*q

I W io WtatttU

iammm

m M

eé

ti#£w

d r m t f& nj *

te&tàtWf
w^hé$é^imX %&■
and allotment figure a vita respact ■

t ìì Mm

1- 7/8 p e rc e n t T re a s u ry C e r t i f i c a t a %,^r ¿g À ta» & m r J È f ' t m k é & m
C-195^., to be dateci S epteiteer 1%
.
U*mh®% ÌM tm m &tiJ pm m M I M I msm
km
!
-Set:!-criptions. and all ù timiÀtit
$a
ll^4p|' r//'
Federai Ho serve Bis trio
"m
ma* hm
wn®m%'
¿*4«?
..........
--- ITi';T^'i
UTifr«flìf|fj)|T'
■ytippfW''

■“T*

w

«

m

mèmM- ■
, rt-IC
£tAÌ't ì J '

%u

f 4i

hmtitàttàM.
B&tàUrk
Q & teUS)

:

*>1’d

'

f

99^ 1000

m m u m r il m se ,
Friday, Septsaber lii, 1951»

x Y

the Secretary of tha Treasury today announced the subscription and
allotment figu re* with respect to tha currant offering o f l~7/8 percent
treasury C ertificates o f Indebtedness o f Earles C-1952, to be dated
September U , 1951.
Subscriptions and allotments vara divided among the several Federal
Reserve D istricts and ths treasury as follows i
to ta l Subscriptions
Received and Allotted

Federal Reserve
D istrict

§ 39,7i»9,000
3 3 k ,M ,000
13,202,000
55,685,000
3,776,000
2,059,000
76,221,000
32,075,000
1»,11U,000
9,867,000
1,90?,OCR)
9,ii02,000
591,000

Boston
Rea Toxic
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
S t. Louie
Kinneapolis
Kansas City
Dallas
Ban Francisco
Treasury
total

|SS2,99k,0QO

TR EA SU R Y D EPA R TM EN T
Information Service

WASHINGTON, D .C .

42 5
IMMEDIATE RELEASE,
Friday, S e p t e m b e r 14,

1951.

S-2817

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 tment figures w i t h re s p e c t to the current o f f e r i n g of
1-7/8 p e r c e n t T r e a s u r y C e r t i f i c a t e s of I n d e b t e d n e s s of Series
C-1952, to be d a t e d S e p t e m b e r 15* 1951.
Subscriptions, and a l l o t m e n t s were 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 n d the T r e a s u r y as follows:

Federal Reserve
District

several

Total Subscriptions
R e c e i v e d and A l l o t t e d

Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St, Louis
Minneapolis
K a n s a s City
Dallas
San Francisco
Treasury

$

39,7^9,000
334,3^6,000

13,202,000
55.685.000
3.776.000

2.059.000
76.221.000
32,075,000
4.114.000

9.867.000
1 , 9 0 7 , 0 0 0

9,402,000
_______ 5 9 1 , 0 0 0
TOTAL

0O0

$582,994,000

I

Saptaabar 6, 1951

YO lift« B á E m f t

Th« followlng transaetiona «era ¡nada la diract and guarant«*d
aacuritiaa of tha Gov«ma«nt fo r Traasury invaataant and othar
aecounts durlng fcha montfa of áugust, 1951 f
P u r e r a s « #

•

*

*

•

#

*

«

•

#

»

•

•

«

. $ 5 , 8 0 0 , 0 0 0

Salas • • • ♦ » « * * * • # • • * •

Hst purchasas * • « * * ♦ • • • * #

♦ 14,651,800

(SgcL) £. 0. Barnos
Chiaf, División of Ixrrsstmonts

r -« *M ! i ’TI* t
L
h L V* wD1 U C.ti *
■fiCuW
vo
C In!-*
ID1
n lí
w-*»«'

i jv* K V

Wisecarver 9/6/51

y

R E L E A S E M O R N I N G NEWSPAPERS,

Wednoodaj/, Auguyfe'« I F j 10 i l »■— -

/
D u r i n g the m o n t h of
m a r k e t trans a c t i o n s

frefry

s-^ *^

1951,

in d i rect an d

g u a r a n t e e d securities

of the

G o v e r n m e n t for T r e a s u r y inve s t m e n t
a nd other a c c o u n t s r e s u l t e d in net
f

purchases

of

f

Ç

¿ > / y ,

*00

3GTT, S e c r e t a r y

S n yder a n n o u n c e d today.

oOo

TREASURY DEPARTMENT
Information S e rv ice

WASHINGTON, D .C .

428

R E L E A S E M O R N I N G NEWSPAPERS,

Monday, Septem b er 1 7 , 1951»

D u r i n g the m o n t h of A u g u s t 1951*
market transactions

in d i r e c t and

g u a r a n t e e d 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 nd other a c c o u n t s r e s u l t e d in net
purchases

of $4,651,800,

S n yder a n n o u n c e d today.

oOo

Secretary

S -2 8 1 8

-

2

-

Sales p a l s have been se t in many in d u strie s , and in some f ie ld s there
is riv a lry in com petitions fo r the highest percentage o f P ay ro ll Savings
enrollments.^ Among the r a ilro a d s , fo r in sta n ce, E rie leads with about 6fy‘
per cent df i t s 15,000 employes enrolled* I t s nearest competitors a re Jih e
Hew York, lew Haven & H artford, the Pennsylvania and Santa Pe l in e s .”
The large Curtis-W right p lan t a t Woodridge, H. J #, has tr ip le d i t s en­
rollment from 1,200 to^5,7Q0, out o f 5 ,000 employes.„
^ x
--III TTp v Joraoy also ^he Eoebling Company, bridge manufacturers o f Trenton,

has set a goal o f 75 per cent in a per son-to—person canvass among i t s 5,000
workers, and a sim ilar drijre i s under way among the 20,000 employes o f the
Public Service C o r p * / - * ^ ,« * w t
Pennsylvania*s 65,000 S ta te employes are being urged to jo in in the
Payroll Savings P lan, as suggested in a l e t t e r to them from(GcnFp John S. Pine.

/

At the General E le c t r ic Company in lew York, where 80,000 o f the 200 000
total personnel are alread y en ro lled as regular bond purchasers, campaign*
volunteers have undertaken the i maftnsg task o f reaching every non-p articipant
personally, and in creasin g the company* s r r p p o b y manyjjnore thousands.
is*
.>nT1,rn.'m m u u
1
137176 -, iikiuj,,;®!: among
among

.

e t+4-%

* ^ 6 Oliver Iroff4Sning Conjanyiv/i 11 launch
7,415 employes on Sept. 17, aa4^te£|biong other

f . , ? • ■ £ P ayroll Savings campaigns
^ en listin g lik a y of the
o,000 employesor the mnne so ta Mining & llanufacturing^CoTy^and ^the
t o northern States Power <CoD,
Us
Hubber
has already en ro lled 5 5 .2 per cent o f
it s 7»002
/»002 employes^
employes ■ frh-**««
..iW
um
PHii and theand
IT the Hash-Kelvinator
< 3 ^ h a s launched ¡f campaign among the 25,000 on i t s p a y ro ll.

%

^ o l r e s T l n ^ S s m ^ ^ C o ^ J**

Columbia
Consolidated Western S t e e l ,' Lurnmus1 <cfj, Sobert Gair Go, Eadio Marine
of America , S u ita b le L ife Assurance So ciety o f the TJ,
DeYoeCg
Haynolds, B e s t f S ^ . , ***#. Arms,
Jo n e s ^ !Ia u g h lin S te el(g o ? .Bessemer^^'
Lake Erie H ailfSad, Harbison-Walker, and. Blaw-Knox CompaniesT*’**”“'

Civic a c t i v i t i e s in th|\^rive included the dedication o f one of the b u siest
intersections of the Bronx, Hew York C ity , as "Defense Bond Square". The
oeation i s Pordham Hoad and Grand Concourse, where a "06roes #onor Ifo ll" has
^een set up, in scrib ed with the names of eig h t Bronx veterans of the Korean
v°t
_^*es ¥k° ^-ave been awarded medals fo r g a lla n try in a ctio n . Twn gf the
^ huiiux’^u. a t tende d—
Speaker's ntr""thri"~dedi ,e'a4>i » n —ee r ea e ny
rRd,,.the n
e
c
c
- s
i ' ...f.n bi?v?rr.vp th^ ^ g h t ln g man

_•A-

n w

A,

|

.-/*

%*■'

<^L

«—-f

¿3

U wMrte.

t,#v

t *

r

-WTS

y

vr

£

^

^

=

=

- -

B

/

t

y
(
\

y

/righting and/
1, Directoj^f Defense
-------- ------- —
—

His warning came simultaneously with annonncament i y the T re a su ry o f stepp­
ed-up a c t iv it i e s to add m illio n s
-^v^^yTT a]_rea(^y en rolled
in the P ayroll Savings bond-buying plan . The Person-to-person canvass in the
country*s la rg e s t in d u stria l p lan ts i s the m e t extensive since World War XI.
,fI ¿0 n° t "believe there i s any fundamental change in the ru th le ss Communist
aim eventually to capture the fre e world /nd our country in p a r tic u la r ,"
declared Mr. Wilson. "We must remain stea d fa st in our purpose to arm and pre­
pare for whatever might come. We know /hat only an imposing array of might
on our part w ill deter £Jmp C o m m u n i s t f r o m aggression against us or our
a llie s . Nothing has changed; l e t us not "be lu lle d b y a fa ls e sense th at a l l
is well. m
Concluding h is bond appeal, Mr. Wilson added: "Our might must be b u ilt
of men and guns and a strong economy. Our men are being c a lle d to m ilita ry
service and many have given liv e s and limbs already fo r the defense o f our
principles.
"To back them up - to buy the guns and a t the same time b u ild our n ation *s
economic strength— buy TJ. S. Defense Bonds reg u la rly and sy stem a tica lly .
Payroll savings i s one o f the b e st ways to save your money and, in so doing,
#*-fSm'if
"build America*s m ight."
In a
ty0'0$t/of the la rg e r in d u stria l p la n ts throughout America, pro*
gress of the
Defense Bond Drive i s being a cce lera ted by voluntary
lósales
v/ithin the p la n ts.- Where the P ay ro ll Savings plan had previously
I
d, workers are s tr iv in g to in crease the number o f employes en rolled
U/^whe re -&horo va
no j,
plan
gin operation
— o•—
---- ------j 3 ------- — b—e fo re- , i- t« i- s being inaugurated with as
large an enrollment as p a s s ib le .
An in d ica tio n of the intense a c t i v i t y under way came to the Treasury*s
attention from the Pord assembly p lan t in Dearborn, Mich., where many employes
have signed up to purchase a bond out o f each week* s pay. This "Bond-Ar-Pay"
plan, though not new, since many workers have been saving th at way fo r years,
ls Saining in oth ers se ctio n s under the impetus o f the present d riv e.
So f a r , the P ay ro ll Savings drive a t Pord has increased by 40,000 the
number of employes en ro lled in the p lan , bringing the to t a l to about 66,000,
an increase o f 154 per cen t. This rep resen ts increased savings o f $23,000,000
a year through the system atic purchase o f bonds. The campaign i s continuing
at Pord and i t i s expected about 3,000 more w ill be signed up among the
group yet to be canvassed.

T R E A S U R Y

D E P A R T M E N T

Information Se rv ic e

W a s h in g t o n ,

431
release m o r n i n g

newspapers,

Monday. September 17. 1951-

S-2819

In an a p p e a l to the n a t i o n t o d a y to increase its f i g h t i n g and
economic strength t h r o u g h the p u r c h a s e .of D e f e n s e Savings Bonds,
Director of D e f e n s e M o b i l i z a t i o n Charles E . W i l s o n w a r n e d of
Communist designs for w o r l d conquest.
His w a r n i n g came s i m u l t a n e o u s l y w i t h a n n o u n c e m e n t by the
Treasury of s t e p p e d - u p a c t i v i t i e s to a dd m i l l i o n s of e m p l o y e s to
those already e n r o l l e d in the Pa y r o l l Savings b o n d - b u y i n g plan.
The person-to-person canvass in the country's largest i n d u strial
plants is the m o s t e x t e n s i v e since W o r l d W a r II.
"I do not b e l i e v e there.is a n y f u n d a m e n t a l change in the
ruthless C o m munist a i m e v e n t u a l l y to capture the free w o r l d and our
country in p a r t i c u l a r , " d e c l a r e d Mr. Wilson.
"We m u s t r e m a i n
steadfast in our p u r p o s e to a r m a nd p r e pare for w h a t e v e r m i g h t
come. We lcnow that o n l y a n i m p o s i n g a r r a y of m i g h t on our part
will deter C o m m u n i s t i m p e r i a l i s m fro m a g g r e s s i o n ag a i n s t us or our
allies.
N o t h i n g h as c h a n g e d ; let us not be lulled by a false
sense that a ll is well."
Concluding h i s b o n d appeal, Mr, W i l s o n added:
"Our m i g h t y m u s t
be built of m e n a nd guns a nd a s t rong economy.
Our m e n are b e i n g
called to m i l i t a r y service a nd m a n y h a v e g i ven lives and limbs
already for the de f e n s e of our principles.
"To back t h e m up -- to b u y the guns and at the same time build
our nation's e c o n o m i c s t r e n g t h -- b u y U. S. De f e n s e B o n d s r e g u l a r l y
and systematically.
Pa y r o l l savings is one of the best ways to
save your m o n e y and, in so doing, b u i l d A m e r i c a ' s might."
In thousands of the larger i n d u s t r i a l plants throughout^
America, progress of the T r e a s u r y ' s D e f e n s e B o n d D r i v e is b e i n g
accelerated b y v o l u n t a r y sales groups w i t h i n the plants.
W h e r e the
Payroll Savings p l a n h a d p r e v i o u s l y existed, wo r k e r s are s t r i v i n g
to increase the n u m b e r of em p l o y e s enrolled.
Where no p l a n was
in operation before, it is b e i n g i n a u g u r a t e d w i t h as large an
enrollment as possible.

432
-

2

-

A n i n d i c a t i o n of the intense a c t i v i t y u n d e r w a y came to the
Treasury’s a t t e n t i o n fro m the F o r d a s s e m b l y p l a n t i n Dearborn,
Michigan, w h ere m a n y emplo y e s h a v e signed up to p u r c h a s e a b o n d
out of each w e e k ’s pay.
This MB o n d - A - P a y " plan, thou g h n o t new,
since m a n y w o r k e r s h a v e b e e n s a v i n g that w a y for years, is g a i n i n g
in others s e c tions u n d e r the impetus o f the p r e s e n t drive.
So far, the P a y r o l l Savings d r i v e at F o r d h a s i n c r e a s e d by
40.000 the n u m b e r of em p l o y e s e n r o l l e d in the plan, b r i n g i n g the
total to a b o u t .
,000, a n incre a s e of 154 p e r cent.
This
represents i n c r e a s e d savings of $
,
a y e a r t h r o u g h the
systematic p u r c h a s e of bonds.
The c a m p a i g n is c o n t i n u i n g at F o r d
and it is e x p e c t e d a b o u t
m o r e w i l l be s i gned up a m o n g the
group yet to be canvassed.

66

23 000,000

3,000

Sales goals h a v e b e e n set in m a n y industries, a n d in some
fields there is r i v a l r y i n c o m p e t i t i o n s for the h i g h e s t p e r c e n t a g e
of Payroll S a vings enro l l m e n t s .
A m o n g the railroads, for instance,
Erie leads w i t h a b o u t
p e r cent of its 1 5 , 0 0 0 e m p l o y e s enrolled.
Its nearest c o m p e t i t o r s are the N e w Y o r k , N e w H a v e n & Har t f o r d ,
the Penns y l v a n i a an d S a nta Fe lines.

65

The large C u r t i s - W r i g h t p l a n t at W o o d r i d g e , N e w Jersey, h as
tripled its e n r o l l m e n t f r o m
to
,
, out of
employes.
The Ro e b l i n g Company, brid g e m a n u f a c t u r e r s of Trenton, h a s set a
goal of
p e r cent in a p e r s o n - t o - p e r s o n canvass a m o n g its
workers, and a s i m i l a r d r ive is u n d e r w a y a m o n g the
employes of the Publ i c Service Corporation.

1,200

3 700

75

5,000

20,000

5,000

P e n n s y l v a n i a ’s 6 5 , 0 0 0 State emp l o y e s are b e i n g u r g e d to join
in the Pa y r o l l S a v ings Plan, as s u g g e s t e d in a lett e r to t h e m f r o m
Governor J o h n S. Fine.
At the G e n e r a l E l e c t r i c C o m p a n y in N e w York, w h e r e 8 0 , 0 0 0
of the
t o t a l p e r s o n n e l are a l r e a d y e n r o l l e d as r e g u l a r
bond purchasers, c a m p a i g n v o l u n t e e r s h a v e u n d e r t a k e n the task of
reaching e v e r y n o n - p a r t i c i p a n t pers o n a l l y , a n d - i n c r e a s i n g the
company’s p a r t i c i p a t i o n b y m a n y m o r e thousands.

200,000

The O l i v e r I r o n M i n i n g C o m p a n y of M i n n e s o t a w i l l l a u n c h a d r ive
among its 7 , 415 e m p l o y e s on S e p t e m b e r
. A m o n g o t her a c t i v i t i e s
in M innesota are P a y r o l l Savings c a m paigns e n l i s t i n g m a n y of the
8.000 employes of the M i n n e s o t a M i n i n g & M a n u f a c t u r i n g Company,
and the N o r t h e r n States P o w e r Company, w h i c h h a s ove r 2 , 0 0 0
employes.

17

433

- 3 In Michigan, the U n i t e d States R u b b e r C o m p a n y has a l r e a d y
enrolled
per cent of its
employes, an d the
Nash-Kelvinator C o m p a n y has la u n c h e d a c a m p a i g n a m o n g the 2 5 , 0 0 0
on its payroll.

55.2

7,002

A m o n g other firms r e p o r t i n g p r o g r e s s in e n r o l l i n g e m p loyes
are Columbia Steel, C o n s o l i d a t e d W e s t e r n Steel, Lummus Company,
Robert Gair Company, R a d i o M a r i n e C o r p o r a t i o n of America,
Equitable Life A s s u r a n c e S o c i e t y of the U n i t e d States,
DeVoe and Rayno lds, B e s t a nd Company, A r m a Corporation,
Jones and L a u g h l i n S t eel Company, B e s s e m e r a n d Lake E r i e Railroad,
Harbison-Walker, an d B l a w - K n o x Companies.
Civic a c t i v i t i e s in the D e f e n s e B o n d D r i v e i n c l u d e d the
dedication of one of the b u s i e s t i n t e r s e c t i o n s of the Bronx,
New Yor k City, as "Defense B o n d S q u a r e " . The l o c a t i o n is
Fordham R o a d a nd G r a n d Concourse, w h ere a "heroes h o n o r roll" has
been set up, i n s c r i b e d w i t h the n a mes of e i ght B r o n x v e t e r a n s of
the Korean h o s t i l i t i e s w ho h a v e b e e n a w a r d e d m e d a l s for g a l l a n t r y
in action.

oOo

§11

iim ssj mmzm mmàmm,

Tuesday* $mUmb*r iS» 19$1»
The feeretary mf th« Treasury announced le s t «risin g Ä r t th« U nter* fer
11,200,000,000, er thereabouts, # f 91-dsy

b ill» t# b« t à l l i Ssptcsber 20 &&<i

in « I u r e Daeeriber 20, 1991, «tild i *« ra *££*r*é m Septanbar 33, m m «pesad afe U*

faterà ÏÏmmw® teak* m SepUmter X?«
thè ¿ « ta lla o f th is Issa « ar« aa fellewet
Total applied fa r - $1,929,82b,000
fö ta l accepted
- 1,202,399,000
Average Prie«

(ineludee $l62$726,(m «stared «a a
mn-c<mpmtl&ive b a sis and accepted la
¿ a ll a t th« average pria« aheira balar)
- 99.S8M leaivaXest rata « f discount approx. l«6fcM par asm

Bangs o f accepted cownetitive blèsi
* 9?«6l0 Squimlmat ra t« « f discount approx. 1«&3$ per mm
<* 99*583
*
»
•
»
»
1.650A *
»

Ititi
Um

(Ü percent of th« a s s i t bid fa r « t th« la s prie« « a * accepted)
Federal Beaarv«
Distrist

Total
Applied far

fatai
Asssptsd

Boston
Want fork
Philadelphia
Cleveland
Richmond
Atlanta
Chisago
St. Louis
Minneapolis
Cansas City
Dallas
San frassises

1 25 ,721,000
1,350,1108,000
33*330*000
Tb,103,000
>7*673*000
29,739,000
187,687,000
80,17li,000
8,Oli,000
>1,336*000
S7,5Wt,OùO
>U.099.000

8

$l,929,82li,000

61,102,399,000

TOZAL

>lt,866,oàO

7»,S5>*000
17,760,000
67,81(6*000
ìi,8i5»00Q

2T,37k»Q00
Ii8,iß7,ü30
I6,3b7,000
7,7W,000
21,»li,030
ÍT»>31.000

71».11?^00

T R E A S U R Y

D E P A R T M E N

Information S e rv ice

WASHINGTON, D c

435
reiease m o r n i n g

newspapers,

Tuesday, S e p t e m b e r 18,

1951,

S - 2820

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 , 200,000,000, or thereabouts, of 9 1 - d a y T r e a s u r y hills
to he dated S e p t e m b e r 20 and to m a t u r e D e c e m b e r 20, 1951* w h i c h were
offered on S e p t e m b e r 13, wer e open e d at the F e d e r a l R e s e r v e Banks
on September 17.
The details

of this issue are as >f o l l o w s :

Total a p p l i e d for - $ 1 , 9 2 9 , 8 2 4 , 0 0 0
Total a c c e p t e d
1,202,399,000

Average Price

(includes $ 1 6 2 , 7 2 6 , 0 0 0
e n t e r e d on a n o n - c o m p e t i t i v e
basis 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)
- 9 9 . 5 8 4 / E q u i v a l e n t rate of d i s c o u n t approx.

1 ,6 4 4 $ p e r annum
Range of a c c e p t e d c ompetitive bids
- 9 9 . 8 1 0 E q u i v a l e n t rate
1.543$
- 9 9 .583 E q u i v a l e n t rate
.
$

High

Low

1 650

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

(43 percent of the a m o u n t b id for at the low price was accepted)
T o tal
Applied f

Federal Reserve
District

Boston

$

New York
Philadelphia
Cleveland
Richmond
Atlanta

o

25 721,000

,
1,350,402,000
33.330.000
74.103.000
27.673.000
29. 7 3 9 . 0 0 0
,687,000
20. 1 7 4 . 0 0 0
8 , 0 14,000

$

24,866,000

722,552,000
17 .760.000

57.5 4 4 . 0 0 0
94.099.000
$1,929,824,000

$ 1 ,2 0 2 ,3 9 9 , 0 0 0

.

2 1 338.000

TOTAL

Total
Accepted

■

67.846.000
24.845.000
27.374.000
148,487,000
18.347.000
7,748,000
21.224.000
47.231.000
74.119.000

187

Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco

r

0O0

RELEASE, MORNING NEWSPAPERS,
Tuesday, September 18, 1951»

S-3821
Secretary of the Treasury Snyder today announced the offering, through
the Federal Reserve Banks, of 1-7/8 percent Treasury Certificates of In­
debtedness of Series D-1992, open on an exchange basis, par for par, to
holders of 1 - l A percent Treasury Notes of Series 4-1951, in the amount of
^1,918,3o7,000, which will mature on October 1, 1951* Cash subscriptions
will not be received.
The certificates now offered will be dated October 1, 1991, and m i l
bear interest from that date at the rate of one and seven—eighths percent
per annum, payable with the principal at maturity on September 1, 1992.
They will be issued in bearer form only, in denominations of $1,000, $9,000,
$ ,
, $
and $ ,
,
.

10 000 100,000

1 000 000

Pursuant to the provisions of the Public Debt Act of 19Ul, as amended,
interest upon the certificates new offered shall not have any exemption, assuch, under the Internal Revenue Code, or laws amendatory or supplementary
thereto. The full provisions relating to taxability are set forth in the
official circular released today.
Subscriptions will be received at the Federal Reserve Banks and
Branches, and at the Treasury Department, Washington, and should be accom­
panied by a like face amount of the maturing notes. Subject to the usual
reservations, all subscriptions will be allotted in full.
The subscription books will close for the receipt of all subscriptions
at the close of business Friday, September 21.
Subscriptions addressed to a Federal Reserve Bank or Branch or to the
Treasury Department, and placed in the mail before midnight September
,
will be considered as having been entered before the close of the subscrip­
tion books.

21

The text of the official circular follows!

:

437

UNITED STATES OF AMERICA
1-7/8 PERCENT TREASURY CERTIFICATES OF INDEBTEDNESS OF SERIES D-1952
Dated and bearing interest from October 1, 1951

1951

Due September 1, 1952

TREASURY DEPARTMENT*
Office of the Secretary,
Washington, September 18, 1951.

Department C ircu lar No, 893
F is c a l Serv ice
Bureau of the Public Debt
I.

OFFERING OF CERTIFICATES

1, The Secretary of the Treasury, pursuant to the authority of the
Second Liberty Bond Act, as amended, invites subscriptions, at par, from
the people of the United States for certificates of indebtedness of the
United States, designated 1-7/8 percent Treasury Certificates of Indebted­
ness of Series D-1952, in exchange for Treasury Notes of Series A-1951,
maturing October 1, 1951.
II,

DESCRIPTION OF CERTIFICATES

1. The certificates vdll
interest from that date at the
with the principal at maturity
subject to call for redemption

be dated October 1, 1951, and will bear
rate of percent per annum, payable
on September 1, 1952. They will not be
prior to maturity.

1 7/8

2. The income derived from the certificates shall be subject to all
taxes, now or hereafter imposed under the Internal Revenue Code, or laws
amendatory or supplementary thereto. The certificates shall be subject to
estate, inheritance, gift or other excise taxes, whether Federal or State,
but shall be exempt from all taxation now or hereafter imposed on the
principal or interest thereof by any State, or any of the possessions of
the United States, or by any local taxing authority.
3.
moneys.

The certificates will be acceptable to secure deposits of public
They will not be acceptable in payment of taxes.

lu Bearer certificates will be issued in denominations of $1,000,
$5,000, $10,000, $100,000 and $1,000,000. The certificates m i l not be
issued in registered form.
5. The certificates will be subject to the general regulations of the
Treasury Department, now or hereafter prescribed, governing United States
certificates.
III.

SUBSCRIPTION AND ALLOTMENT

1. Subscriptions will be received at the Federal Reserve Banks and
Branches and at the Treasury Department, Yfashington. Banking institutions

438
-

2

-

g e n e rally may submit subscriptions for account of customers, but only the
Federal Reserve Banks and the Treasury Department are authorized to act as
o f f i c i a l agencies.

2. The Secretary of the Treasury reserves the right to reject any
subscription, in whole or in part, to allot less than the amount of certifi­
cates applied for, and to close the books as to any or all subscriptions at
any time without notice; and any action he may take in these respects shall
be final. Subject to these reservations, all subscriptions will be allotted
in full. Allotment notices will be sent out promptly upon allotment.
IV.

PAYMENT

1. Payment at par for certificates allotted hereunder must be made
on or before October 1, 195>1, or on later allotment, and may be made only
in Treasury Notes of Series A-195>1j maturing October 1, 195>1, which will be
accepted at par, and should accompany the subscription.

V.

GENERAL PROVISIONS

1. As fiscal agents of the United States, Federal Reserve Banks are
authorized and requested to receive subscriptions, to make allotments on
the basis and up to the amounts indicated by the Secretary of the Treasury
to the Federal Reserve Banks of the respective Districts, to issue allot­
ment notices, to receive payment for certificates allotted, to make
delivery of certificates on full-paid subscriptions allotted, and they may
issue interim receipts pending delivery of the definitive certificates.
2. The Secretary of the Treasury may at any time, or from time to
time, prescribe supplemental or amendatory rules and regulations governing
txhe offering, which will be communicated promptly to the Federal Reserve
Banks,

JOHN W. SNYDER,
Secretary of the Treasury.

Draft Press Release
NAC Report

Secretary Snyder, as Chairman of the National Advisory Council on
International Monetary and Financial Problems, today transmitted to the
President and to the Congress a report of the Councils activities during
the six months ending March 31, 1951»
The report reviews the impact of the defense program on the United
States balance of payments, with special emphasis on changes in exports
and imports, terms of trade, government aid, and gold and dollar assets*
The Council points out that under the stimulus of the rearmament
program, including strategic material stockpiling, United States foreign
trade expanded vigorously during the period under review the value
of merchandise imports showing a 50 percent increase, and exports a
2£ percent increase over the level existing in the first half of 19^0*
With the advent of hostilities in Korea, the United States — as well
as other major industrial countries — experienced a marked deterioration
in terms of trade, the report states* The index of United States prices
of imported commodities rose by almost 60 percent from June 19i>0 to
March 19£U The Council notes that it has maintained a careful scrunity
of the impact of general price movements on the United States balance of
payments during this period.
The report shows that, during the six months under review, the Council
considered pertinent monetary and financial questions relating to the
Mutual Security Program for fiscal 193>2, which includes military and
economic aid to-western Europe, military assistance to certain other
countries, and a broad program of aid to underdeveloped areas* Among
the topics so reviewed were local currency counterpart, loan-grant
policy, and gold and dollar reserves*
The report notes, with reference to foreign exchange rates, that
the Council eyopressed the opinion that any general appreciation of foreign
currencies at this time was not warranted*
The report contains a review of the lending activities of the ExportImport Bank, and also a review of the financial and technical assistance
activities of the International Bank for Reconstruction and Development
and the International Monetary Fund.
As in the past, the report is accompanied by comprehensive statistics
on various aspects of United States Government foreign assistance in tne
postwar period, as well as on gold and short-term dollar resources o
foreign countries, and gold transactions between the United States an
foreign countries. The Council reports that on March 31, 1951 wj*
world gold reserves (excluding the U*S*S*R*), were estimated at $3p*
billion, of which the United States had $21.9 billion, or more than
three-fifths«

0 K

TREASURY DEPARTMENT
InformationService
IMMÉDIATE RELEASE
Tuesday. Septem ber 18. 1951

WASHINGTON, D

440
S-2822

Secretary Snyder, as Chairman of the National Advisory Council on
International Monetary and Financial Problems, today transmitted to the
President and to the Congress a report of the Council’s activities during
the six months ending March 31, 1951o
The report reviews the impact of the defense program on the United
States balance of payments, with special emphasis on changes in exports
and imports, terms of trade, government aid, and gold and dollar assets0
The Council points out that under the stimulus of the rearmament
program, including strategic material stockpiling, United States foreign
trade expanded vigorously during the period under review — the value of
merchandise imports showing a 50 percent increase, and exports a 25 per­
cent increase over the level existing in the first half of 1950 o
With the advent of hostilities in Korea, the United States — as well
as other major industrial countries — experienced a marked deterioration
in terms of trade, the report states0 The index of tfaited States prices
of imported commodities rose by almost 60 percent from June 1950 to
March 1951o The Council notes that it has maintained a careful scrutiny
of the impact of general price movements on the United States balance of
payments during this period0
The report shows that, during the six months under revie?:, the Council
considered pertinent monetary and financial questions relating to the
Mutual Security Program for fiscal 1952, which includes military and economic
aid to western Europe, military assistance to certain other countries, and
a broad program of aid to underdeveloped areas0 Among the topics so
reviewed were local currency counterpart, loan-grant policy, and gold and
dollar reserveSo
The report notes, with reference to foreign exchange rates, that the
Council expressed the opinion that any general appreciation of foreign
currencies at this time was not warranted0
The report contains a review of the lending activities of the ExportImport Bank, and also a review of the financial and technical assistance
activities of the International Bank for Reconstruction and Development
and the International Monetary Fund0
As in the past, the report is accompanied by comprehensive statistics
on various aspects of United States Government foreign assistance in the
postwar period, as well as on gold and short-term dollar resources of foreign
countries, and gold transactions between the United States and foreign
countrieso The Council reports that on March 31, 1951 total world gold
reserves (excluding the U0S0S0R0), were estimated at $35o8 billion, of which
the United States had $2109 billion, or more than three-fifths0

- 3 ALPHA

any State, or any of the possessions of the United States, or by any local tax­
ing authority*

For purposes of taxation the amount of discount at which

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

Under Sections

as amended by Section

and

117 (a) (1) of the Internal Revenue Code,

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, v/hether 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

-

"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 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 tho right to accept or reject
any or all tenders, in whole or in part* and his action in any such respect shaf
be final.

Subject to these reservations, non-compe'titive tenders for '£200J

or less without stated price from any one bidder wi.ll be accepted in full at thj
average price (in three decimals) of accepted competitive bids.

Settlement for

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

September 27, 1951 , in c$ash or other immediately ava|

able funds or in a like face amount of Treasury bi!lls maturing September^?? 19i
Cash and exchange tenders will receive equal treatment.

Cash adjustments villi

made for differences between the par value of matuiring bills accepted in excha(
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 hfave any exemption, as such,
and loss from the sale or other disposition of Treasury bills shall not have a|
special treatment, as such, under the Internal Revenue Code, or laws amondatoij
or supplementary thereto.
gift

The bills shall be subject to estate, inheritance,

or other excise taxes, whether Federal or Stat&e, but shall be exempt Hi

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

Exhibit'*:!"

.ALPHA’
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Thursday, ’sen|||ber 20 f 1Q51
The Secretary of the Treasury, by this public notice, invites tenders for
$1,200,000,000 , or thereabouts, of
91
-day Treasury bills, for cash and
fS?
in the amount of $1,000,372.000.
in exchange for Treasury bills maturing September 27, 1951
,/to be issued on

~H3
a discount basis under competitive and non-competitive bidding as hereinafter
provided.

The bills of this series will be dated September 27, 1951

----aar----

will mature December 27» 1951
interest.

, and

, when the face amount will be payable without

They will be issued in bearer form only, and in denominations of

$1,000, $5,000, $10,000, $100,000, $500,000, and $1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the
Daylight Saving
closing hour, two o’clock p.m., Eastern atasdso^/time, Monday. September git. 19511
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 threej
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 Till
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,

RELEASE MORNING NEWSPAPERS,
Thursday, September 20, '1951.

S-2823

The Secretary of the Treasury, by this public notice, invites
tenders for $1,200,000,000, or thereabouts, of 91-day Treasury
bills, for cash and in exchange for Treasury bills maturing
September 27, 1951, in the amount of $1,000,372,000, to be issued on
a discount basis under competitive and non-competitive bidding as
hereinafter provided.
The bills of this series will be dated
September 27, 1951, and Will mature December 27, 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 ,
$100 ,000 , $ 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, September 2A, 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., 99*925»
Fractions may not be used.
It
is urged that tenders be made on the printed forms and forwarded in
the special envelopes which will be supplied by Federal Reserve
Banks or Branches on application therefor.
Others than banking institutions will not be permitted to submit
tenders except for their own account.
Tenders will be received
without deposit from incorporated banks and trust companies and from
responsible and recognized dealers in investment securities.
Tenders
from others must be accompanied by payment of 2 percent of the face
amount of Treasury bills applied for, unless the tenders are
accompanied by an express guaranty of payment by an incorporated bank
or trust company.
Immediately after the closing hour, tenders will be opened at
the Federal Reserve Banks and Branches, following which public
announcement will be made by the Secretary of the Treasury of the
amount and price range of accepted bids.
Those submitting tenders
will be advised of the acceptance or rejection thereof.
The
Secretary of the Treasury expressly reserves the right to accept
or reject any or all tenders, in whole or in part, and his action in
any such respect shall be final.
Subject to these reservations,
non-competitive tenders for $ 2 0 0 ,0 0 0 or less without stated price
from any one bidder will be accepted in full at the average price

-

c

-

(in throe decimals) of accepted competitive bids,
ettlement for
accepted tenders in accordance with, the bids must b< made or
completed at the Federal Reserve Bank on September 27, .1951 ±n
,
or other immediately available funds or in a like face amount of * n
Treasury bills maturing September 27, 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
from the sale or other disposition of the bills, shall not have gri.ij
ny
such, and loss from the sale or other disposition of
exemption, as such,
Treasury bills shall not have any special treatment, as such under
the Internal Revenue Code, or laws amendatory or supplementary
thereto.
The bills.shall b e ,subject to estate, inheritance gift or
other excise taxes, whether Federal or State, but shall b e 1 exempt
from all taxation now or hereafter imposed on the principal or ■
interesL thereof by any State, ,or any of the possessionsiof 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 bo
interest. Under Sections 42 and.;1 1 7 .............. of the
.. ,Inter]
...... .... Revenue
Code,.....
as :amended hi. Section 115 of the Revenue Act of 1941, the
amount.-of discount at which bills issued hereunder are sold shallnot be considered to'accrue until such bills shall be sold., redeemed
or otherwise disposed of, and such bills are excluded from consid­
eration as capital assets. Accordingly, the owner of Treasury*. :•
.bills (other than life insurance companies) issued hereunder,need;
;
in his, -income tax return only the difference between the
prige paid for such bills, whether on original issue or on sub­
sequent purchase, and the amount actually received either upon sale
or redemption at maturity during the taxable year for which the
return is made, as ordinary gain or lo s s .
.Treasury Department Circular No. 4l8, as amended, and this
notice, prescribe the terms of the Treasury bills and govern the
conditions of their issue.
Copies of the c i r c u l a r may be obtained
from any Federal Reserve Bank or Branch.

0 O0

3

Hess Brothers, Pennsylvania; Butler Brothers, Illinois;
Montgomery Ward & Co., Illinois; Julius Kayser & Co.,
New York; B. Altman 85 Co., New York.

2

in Fort Wayne, Foley Brothers in Houston, J. L. Hudson
in Detroit, and Herpolsheimer's in Grand Hapids.
Chain establishments which have
the drive include such companies as F. W. Woolworth,
W. T. Grant, McCrory, S. S. Kresge, H. L. Green, Western
Auto Supply, S. H. Kress, McLellan, Ben Franklin, Scott &
Burr, J. J. Newberry, M. H. Charles, G. C. Murphy,
G. M. Najarian & Sons, Neisner Brothers, Van BU Priest,
H. B. Thomas, Danner Brothers, M. H. Fishman, Lamston,
Germain, Rose 10 & 250 Stores.
Retailers in large numbers are active adb»o in
promoting the sale of Defense Bonds to their own employees
under the Payroll Savings Plan.

Numerous widely known

concerns have reported attainment of, or close approach
to, an informal goal of 50% enrollment under the Payroll
Savings Plan for their workers.

Stores with 1,000 or

more employees that have already surpassed this percentage
include Goldblatt Brothers & Co., Chicago, 71.7 per cent;
Strawbridge & Clothier, Philadelphia, 63.7; Lit Brothers,
Philadelphia, 52.7; Colonial Stores, Inc., Georgia, 51.5;
and Walker, Ely Dry Goods Co., Missouri, 51.3.
Rapidly approaching the 50% mark are these stores:
L. Greif & Brothers, Maryland; Fashion Park, New York;
Forbes & Wallace, Massachusetts; W. F. Schrafft Sons Corp.,
Massachusetts^ Joseph Horne Co., Pennsylvania; Kaufmann
Dept. Stores, Pennsylvania; Meier & Frank Co., Oregon;

o^J. / ^ ^

^ - S

/

l

Gj»o

^C^jn^Á^O%y

The r e t a i l s t o r e s o f America a re shown by r e p o r ts
to S e c re ta ry Snyder to be u n ite d h e a v ily in su p po rt of
the D efense Bond D r iv e .
0

Not sin c e

r(¿fr6g& '*/

ty0 ^ D

.

-2T

war have the

_

,

.

r e t a i l e r s t e s a r o » Asuch an e x te n siv e b o n d -se llin g
tJL---- -*—?

c h ain s and sm a ll independents a lik e

a re co o p e ratin g with the T reasu ry in the campaign to
expand D efense Bonds s a l e s .
The p a r t ic ip a t io n o f the r e t a i l e sta b lish m e n ts in
the D rive go es f a r beyond the u su a l window d is p la y s ,
alth ou gh th e se ren^iin an im portant fe a t u r e o f th e ir
c o o p e ra tio n .

throughout the

country have s e t up booths a t which o rd e rs f o r bonds
a re tak en , the booths bein g s t a f f e d g e n e r a lly by members
o f women*s c lu b s or o th er c i v i c and p a t r i o t i c o rg an iz atio n s.
Some s t o r e s a re s e l l i n g bonds over t h e ir r e g u la r cou n térs.
Among the la r g e r r e t a i l s t o r e s , th ree s p e c i a l d ate s
have been s e t a s id e in October f o r v ig o ro u s b o n d -se llin g
e f f o r t s , and s t o r e managers are p re p a re s^ to g iv e s p e c ia l
a s s i s t a n c e on th e se o c c a sio n s.

The d a te s a re October 12,

Columbus Day; O ctober 24, U nited N atio n s Day; and October 27,
the f i n a l day o f the D efense Bond D r iv e . ^ T r a d e organ izations
o f a l l branches o f r e t a i l s e l l i n g a re h e lp in g stim u la te
the p a r t ic ip a t io n o f the r e t a i l e r s .

Chambers o f Commerce

and r e t a i l m erchants a s s o c ia t io n s a l s o a re a id in g , "ffsome
o f the country * s rgiwat^ departm ent s t o r e s which a re backing
the bond d riv e str o n g ly a re John Wan^amaker and McCreery’ s
in New York, the Hecht Company in W ashington, Wolfe-Dessauer

TREASURY D E P A R T M E N T
Information

Service

RELEASE S U N D A Y NEWS P A P E R S ,
September 2 3 , 1 9 5 1 -________

WASHINGTON, D .C .

S-2Ö24

The r e t a i l stores of A m e r i c a are s h o w n b y reports to
Secretary S n y d e r to be u n i t e d h e a v i l y in support of the D e f e n s e
Bond Drive.
W o t since W o r l d W a r II h a v e the r e t a i l e r s e n g a g e d in
such a n e x t e n s i v e b o n d - s e l l i n g promotion.
Large chains and small
independents s,like are c o o p e r a t i n g w i t h the T r e a s u r y In the
campaign to e x p a n d D e f e n s e B o n d s sales.
The p a r t i c i p a t i o n of the r e t a i l e s t a b l i s h m e n t s in the Drive
goes far b e y o n d the u s u a l w i n d o w d i s p l a y s , a l t h o u g h these r e m a i n
an important feature of their cooperation.
M a n y stores t h r o u g h ­
out the c o u n t r y h a v e set up booths at w h i c h orders for bonds are
taken, the b o o t h s b e i n g staff ed g e n e r a l l y b y m e m b e r s of w o m e n ’s
clubs or o t her civic a n d p a t r i o t i c o r ganizations.
Some stores are
selling bonds over their r e g u l a r counters.
A m o n g the l a rger r e t a i l stores, three s p e cial dates h a v e b e e n
set aside on O c t o b e r for v i g orous b o n d - s e l l i n g efforts, and store
managers are p r e p a r i n g to give s p e cial a s s i s t a n c e on these
occasions.
The dates are O c t o b e r 12, Colum b u s Day; O c t o b e r 2k,
United N a t i o n s Day; a nd O c t o b e r 27* the final d a y of the D e f e n s e
Bond D r i v e .
Trade o r g a n i z a t i o n s of a ll br a n c h e s of r e t a i l s e l l i n g are
helping stimulate the p a r t i c i p a t i o n of the retailers.
Ch a m b e r s
Commerce and r e t a i l m e r c h a n t s a s s o c i a t i o n s a lso are aiding.

of

4Some of the country's l e a d i n g d e p a r t m e n t stores w h i c h are
backing' the bon d drive s t r o n g l y are J o h n W a n a m a k e r a nd M c C r e e r y ' s
in New York, the K e c h t C o m p a n y in Wash i n g t o n , W o l f e - D e s s a u e r in
Port W a y n e , F o l e y B r o t h e r s in Houston, J. L. H u d s o n in Detroit,
and H e r p o l s h e i m e r 's in Grand Rapids.
C h a i n e s t a b l i s h m e n t s w h i c h hav e e n l i s t e d in the drive include
such companies as F. W. Woolworth, W. T. Grant, McCrory,
S. S. Kresge, H. L. Green, W e s t e r n A u t o Supply, S. H. Kress,
McLellan, B e n Franklin, Scott & Burr, J. J. Newberry, M. H. C h a rles
G *.C. Murphy, G. M. N a j a r í a n & Sons, N e i s n e r Brothers, V a n H.
Priest, H. B. Thomas, D a n n e r Brothers, M. H. Fishman, Lams ton,
Germain, Ros e 10 a nd 25 6 Stores.

449
-

2

-

Retailers in large numbers are active in promoting the sale
of Defense Bonds to their own employees under the Payroll Savings

Plan. Numerous widely known concerns have reported attainment of,
or close approach to, an informal goal of 50$ enrollment under
the Payroll Savings Plan for their workers.
Stores with 1,000
or more employees that have already surpassed this percentage
include Goldblatt Brothers & Company, Chicago, 717 per cent;
Strawbridge & Clothier, Philadelphia, 6 3.7; Lit Brothers,
Philadelphia, 52.7; Colonial Stores; Incorporated, Georgia, 51.5;
and Walker, Ely Dry Goods Company, Missouri, 51.3.
Rapidly approaching the 50$ mark are these stores!
L. Greif & Brothers, Maryland; F a s h i o n Park, N e w York; F o r b e s &
Wallace, M a s s a c h u s e t t s ; W. F. Sc h r a f f t Sons Corporation,
Massachusetts; J o s e p h H o r n e Company, Pennsylvania; K a u f m a n n
Department Stores, Pennsylvania; M e i e r & F r a n k Company, Oregon;
Hess Brothers, Pennsylvania; B u t l e r Brothers, I l l inois;
Montgomery W a r d & Company, Illinois; Julius K a y s e r & Company,
New York; B. A l t m a n & Company, N e w Y o r k .

oOo

oL

S e c r e ta r y Snyder, a t the c o n c lu sio n o f the Seventh
S e s s io n o f the North A tla n t ic T reaty C ouncil in Ottawa,
sta te d :
" In my opin ion the m eeting o f the C ouncil was a
most s u c c e s s f u l one.

I was im pressed not only with

the atm osphere o f s o l i d a r i t y but by the determ in ation
o f the member governments to make the maximum u se of
t h e ir c o u n tr ie s* r e so u rc e s a s p a r t o f a f r e e world
m o b iliz a tio n a g a in s t the th r e a t o f S o v ie t a g g r e ssio n .
" I sh ould li k e to say th a t S e c r e ta r y Acheson did
a m a g n ific e n t jo b in p re se n tin g the view s o f the United
S t a t e s government.

X sh ould a l s o li k e to emphasize that

the U. S . D e le g atio n made no commitments, o r even
s u g g e s t io n s , o f any kind th a t any a d d it io n a l a id would
be forth com in g.

O bviously many o f the member co u n tries

have economic and f i n a n c i a l problem s which makes the
t a s k o f m eeting m ilit a r y requirem en ts d i f f i c u l t .

The

C ouncil h as agreed to stu d y th e se problem s and to
attem pt to d e v ise means f o r s o lv in g them.

But I rep eat

th a t th e re was no commitment o r • su g g e stio n th a t
a d d it io n a l U. S . a id cou ld be looked to a s a so lu tio n
to th e se p ro b le m s."

TREASURY DEPARTMENT
Information

Service

WASHINGTON, D .C .

451
IMMEDIATE R E L E A S E *

Thursday, S e p t e m b e r 20, 1 9 5 1 .

S--2825

Sec r e t a r y Snyder,, at the c o n c l u s i o n of the S e v e n t h S e s s i o n
of the N o r t h A t l a n t i c T r e a t y Council in Ottawa, stated:
"In m y o p i n i o n the m e e t i n g of the C o u n c i l was
a m o s t succ e s s f u l one.
I was imp r e s s e d not onl y w i t h
the a t m o s p h e r e of s o l i d a r i t y hut b y the d e t e r m i n a t i o n
of the m e m b e r gove r n m e n t s to mak e the m a x i m u m use of
their countries' r e s o urces as part of a free w o r l d
m o b i l i z a t i o n a g a i n s t the threat of Soviet a g g r ession. •
"I should like to say that S e c r e t a r y A c h e s o n did
a m a g n i f i c e n t job in p r e s e n t i n g the views of the
U n i t e d States government.
I should a lso like to
emphasize that the U. S, D e l e g a t i o n m ade no c o m m i t ­
ments, or e v e n suggestions, of a n y k i n d that a n y
a d d i t i o n a l a id w o u l d be forthcoming.
Obviously many
of the m e m b e r countries have e c o nomic a nd f i n a n c i a l problems w h i c h make
the task of m e e t i n g m i l i t a r y
r e quirements difficult.
The Council has a g r e e d to
study these p r o b l e m s and to a t t e m p t to d e vise m e a n s
for s o l v i n g them.
B u t I repeat that there was no
commitment or s u g g e s t i o n that a d d i t i o n a l IJ. S.
aid could be looked to as a s o l u t i o n to these p r o b lems."

oOo

5

tòitòkiB UOUtDJG « 2 W R M W S

ISSMa&» I M S É S E 25. 1951.

r ' ì

c

Tbc S«cretary ot th« Trcaaury axmounced last evanlng that ih« tenderà ter
«

Il,200»000,000, or thereaboute, ot 9X~dqr Trassiary bill« to b© datad Bcptesèer 27
and to atature Dcecubar 27»

«blob warc offerad on ¿¡eptaaber 20, «oro oponod

ot tbe Federai Beaerre Bank« on Septesfcar 24»
The detoll« cf thlo leene oro ao follo«»:
Total appllod for - % .772.727.000
Total aocoptod *
Average prie#

Tuli a t tbo arorago prie# eham bolo«)
- 99*504
99.584 ®qpilwi
Equiv&leni rato of discount appara*. l .^ J É per a

Bang« ot aceoptod ceepetltive bidet
iigfe

,% por
H

Lm

( lé porcoitt o t tbo a m i bid fo r a t tbo lo « prleo was aecepted)
Foderai Booonro
Total
Total
D istrlct_______
Aceoptod
M
I Tor
Boston
Kor York
Pblladolcbla
Cleveland
Blebatond

Atlanta
Chicago
S t. louls
Klanoapolls
Kansas City
Dallas
San Francisco
Total

*
13,162,000
1,296,316,000
27.728.000
65.178.000
33.096.000
17.472.000
173,118,000
14.475.000
7,607,000
36.350.000
63.208.000
67.217.000
772,727,000

*

13 ,
062 ,
0«»
747.316.000
13.528.000
65.178.000
33.096.000
17.472.000
163.063.000
14.291.000
7,407,000

.

36 206.000
43,108,000
67,217,« »

*1,200,926,000

RELEASE M O R N I N G NEWSPAPERS,
Tuesday, S e p tember 25, 1 9 5 1 .

S-2S26

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 t h e '
tenders for $ 1 , 2 0 0 ,
,000* or thereabouts, of 9 1 - d a y T r e a s u r y bills
to be dated S e p t e m b e r 27 and to m a t u r e D e c e m b e r
, 1951, w h i c h were
offered on S e p t e m b e r 20, were opened at the F e d e r a l R e s erve B a nks on
September 24.

000

The details

27

of this issue are as follows:

Total a p p l i e d for - $ 1 , 7 7 2 , 7 2 7 , 0 0 0
Total a c c e p t e d
1,200,926,000

Average price

(includes $ 1 4 2 , 6 3 9 , 0 0 0
e n t e r e d on a n o n ­
c o m p e titive b a sis and
a c c e p t e d in full at the
average price 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.
1.647$ p e r a n n u m

- 99-584

Range of a c c e p t e d competitive bids:
-

99.612

E q u i v a l e n t rate
1.535$"
~ 9 9 . 5 8 1 E q u i v a l e n t rate
.
$

1 658

(16

of d i s c o u n t approx.
i?er a n n u m
of d i s c o u n t approx.
p er a n n u m

percent of the a m ount bid for at the low price was accepted)

Federal Reserve
District_____
Boston

Total
A p p l i e d for

$

New York

1 3 ,1 6 2 , 0 0 0

Total
Accepted

13 062,000

1, 2 9 4 , 3 1 6 , 0 0 0

$

,
747.316.000

45.178.000
33. 0 9 6 . 0 0 0
1 7 . 4 72.000
,
1 4.475.000
7,4 0 7 , 0 0 0
36.350.000
43.208.000
67.217.000

45.178.000
33.096.000
17.472.000
163.043.000
14.291.000
7,407,000
36,208^000
43.108.000
67.217.000

2 7 ,7 2 8 , 0 0 0

Phi lade lp h ia
Cleveland
Richmond
Atlanta
Chicago

13 ,528,000

173 118,000

St. Louis

Minneapolis
Kansas C i t y

Dallas
San F ra n c isc o
TOTAL

$1,772,727,000

0O0

1 200,926,000

$ ,

1Iwffl

play

in our great defense effort.

When people thr o u g h ou t the Nati on
share

In a united effort toward a

common goal,

past e x p e r i e n c e tells

us that the goal
In this

light,

reason to

will be reached.

we have every

look forward with

con f i d e nc e to s u c c e s s

in maintaining

a stable and pros p e r ou s economy*

I

c iv i lian

of

efforts

your

¡nation to main t a i n a sound
banking system,

1 know you wi I I

in mind

importance of

the various operations of state
'■fe

banks

in the economic welfare of
|%

this c o u n t r y .
ill t

i know that you
Sk g 0>
f
w

o r t u n i t ie s you have for bringing
a better u n d e r s t a n d i

the

banking and bankers can

added to the spending stream.
individual

funds are spent,

be bid up,

and another round of

prices will

inflation will get under way.
the money

is saved,

may be forestalled,
will

If the

If

price advances
and the funds

be a vailable for spending

later over a more extended period.
During this d e f e n s e emergency,
we can do much toward m a i n t a i ni n g
sound and stable c o n d i t i on s by
avoiding the many potential

sources

j

isting revenue tax

laws, not
cons

ine Iud ing the tax bill
4»

defi c it

on ^ r 0s s t à

of about $ l ü

d ì

I I¡on

for the current fi
the following y e a r ,

is indica
In

y e

ith c u r rent
7

v

tax rates,

the deficit may be twice

this figure,

or more,

under

present schedule for defense

e x o s n ci t o r e s .
A Gove r n m en t deficit,
is
c*
’” fj
v Cx*n* w

of course

t excess funds are being

The effect of these pressures
on prices and

living costs may be

held back for a time,

however,

while

present excess supplies of various
c o n s u m e r goods are being
But the most

intensive phase of our

rear m a m en t effort
In

liquidated.

lies ahead of us.

the coming mont h s we will

inevitably see an

increasing

impact

of mili t a r y production on the
civilian economy -- a situation
in which

inf Iat ion thrives.

Under

UvV

34

for defense.

Rapidly e x p a n d i n g .

defense e x penditures have shifted
the Federal

Budget heavily to the

deficit side, evdn on a cash basis.
Bank credit,

after

out for several

months,

started to expand.
real

estate

leveling

/
loans,

has again

Busin e s s

loans,

S
and "other"

loans of weekly reporting member
banks,

in recent weeks,

reached new record high

have all ,
levels.

t

Persona I
rising,

while the p r o d u c t i o n of'

c i v i l i a n goods,

to be bought with

31

-

The surprising thing

is that

both of these sta t e m e nt s are
largely true.

When c o n s u m e r s and

distributors over-bought
and early this year,
imminent shortages,
tw

last fall

in fear of
they over IooKed

important things; the

length

of the tooling-up period required
for defense production,

and the

immense p r o d u c t i v e power of American
factories.

The prices that were

forced too high are now being

d i f f i c u l t y m o ving their stocks;
that

lack of dema n d has caused

cutbacks

in c o n s u m e r goods

production;
other

and that t h e s e and

indications point to a

d e f l a t i o n a r y situation.
On the other hand, we are
warned that the s i t uation
i n f iat Io n a r y , and that the
thing

is to

is actually
important

look ahead to shortages

of c o n s u m e r goods wnen the defense
%

^ '

p r o g r a m gets fully under way*

of Banking,

as well

as by various

' iiii r ip | | » i | ii i ¡¡I

others.

An

Increase

ip|

In demand for

such fac i l i t ie s would u n d o u b t e d l y
t

give rise to many more scho o l s
thro u g h ou t the c o u n t r y designed to
meet the special

needs of bank

employees.
»Modern day banking calls for a
%

w o r k i n g k n o wledge of many aspects
of e c o n o m i c s as well
business.

as finance and

Prob a b l y no one problem

is giving our bankers more concern

m o n e y ,to the

indi
it the entire

t

Bank s u p e r v i s o n s can hâve
considérable

influence toward such

i m o r o v e m e n t . ' Excellent work

is

1

being done today
advanced

in p r o v iaing

training by such

as the American

inst itutionsj

Institute of Bank trig,

the Rutgers Grad u a t e School
Banking,

of

the Un ivers ity of Wisconsin
II

School

of Banking,

the Pacific School

There

is one other matter

which banks might well

in

take better

a d v a n t a ge of their pres e n t
oppo r t u ni t i e s *

That

is in

d e v e l o p i n g a better trained
personnel*

To raise the

level

of

u n d e r s t a n d i n g of banking and
financial
employees,

matters among bank
I believe*

would not only

when

incomes are high and nearly

every o n e has a job,

presents a

golden o p p o r t u n i t y to every
individual
financial

to a c c u m u l a t e a
reserve.

The d e v e l o p m e n t of a habit
of s y s t e m a ti c saving c o n t r i b u t e s
to economic stability
booms and recessions.

in both

ff-;a.ke people "savings c o n s c i o u s . ’’
Our objective,

as you know,

been not merely to sell
bonds,

has

savings

but to promote the habit of

thrift.

The trem e n d ou s

increase

in all forms of personal

savings

during the past ten years,
believe,

has r e f l e c t e d

I

in part the

e f f e c t i v e n e s s of this program.
in our present campaign,

we

are s t r essing the fact that a perio
of high economic
w

activity
*

like th is

23 -

ou
persona I

In the second

q u a r t e r of this year
a greater a m ount than
since

increased by
in any quarter

lit i 11 this m a y have

r e f l e c t e d an unusual
there

situation

is little doubt that

I nts

are easier to a c c u m u l a t e today than
they are

I Ik ® I y to be

In m o r e normal

times.
Our D e f e n s e b ond c a m p a i g n this
fall,

with

program,

Its n a t i o n - w i d e advertIslm

Is doing a great deal to

close to those at the top of two
major s p e c u l a t i v e credit booms
should warn the b a n k i n g system of
the need for r e b u i l d i n g capital
accounts.
A third o p p o r t u n i t y for banks
today

lies

in the better p rospect

of e n c o u r a g i n g savings during
this period of full
high

incomes.

e m p l o y m en t and

D e p a r t m e n t of

C o m m e r c e e s t imates

indicate that.

increase nas
1st in risk
capitai

accounts

I banks

increased

mi I i ion, the major
c o ming from a d d i t i o ns to surplus.

insurance should not
substitute
tal.

for

The fact that

capital

ratio

is

commercial

banKs have been

c l i m b i n g since

1938.

They

amoun t e d to over 8 p e r c e n t of
capital

accounts

last year,

a

figure exceeded only during the
war years.
Capital

a c c o u n t s have,

in

been e x p anding steadily since b

sale of capital

stocK.

Banx

o p e r a t i o n s r e c e n t l y have p r o f i t e d
from the high d e mand for

loans,

and banxs g e n e r a l l y are now

in a

very f a v orable p o s i t i o n for
buil d i n g up capital

funds.

Gross earnings of all

insured

banKing institutions.
The p r e s e n t financial

situation

o f f e r s an o p p o r t u n i t y seldom
equa l l e d for

improving a b a n « ’s

loan position.
Secondly,

c o n d i t i o n s have

become more f a v o r a b le for building
up bariK capital,

both through

r e t e n t i o n of e a r n i n g s and through

17

-

of their p a r t i c i p a t i o n
effort.

Moreover,

in this

you can

point out to them how they,
by a c c e p t i n g their responsibiI ities,
not only have an o p p o r t u n i t y to
serve their Nation but at the
same time have unusual
o p p o r t u n ¡ties for s t r e n g t h e n i n g
the future security of their own

8Y£
I

I5 -

I
1
I

The r e s p o n s i b i l i t y of bank
supervisors

is increased by the

fact that bank capital
to risk assets

is lower than at

any p r e v i o u s time
decades.

in the past two

The p r o p o r t i o n of capital

a c c o u n t s to risk assets
D e c e m b e r 30, for all
banks,

in r elation

averaged

last

insured commercia

less than

18 percent

ip!!|

Thi s c o m p a r e s with a prewar

from

forces

unusual

variety of risks

Inventory

losses may be

sudde n l y f a I Ien off or prices
i sharply,
bus ines

while other

unusual

U n d e r such c 1rcumstances,
u n u s u a l l y careful

profits.

an

s e l e c t i o n of

loans and a d i v e r s i f i cat ion of risks
is c Iear Iy called for.

some extent by the same
er-o o

11 rn ism

The

in kgm «

has
3

a I c

C s.

•

f c r %-3

IS S I

Ia t e r a I .

is raspons Ib11 ity

banking s y s t e m
# 4?

T i

Is ma

It this y e a r

u n c e r t § IntI © s In
out IO O K

e

p r e sent

c o n f i ict b e t ween

atIon a r y factors

in

civilian e c o n o m y , a

arts

18^
conditions,

nearly

to b o rrow money

in order to buy

l| bulId something,
expand ftis business.

or

This human

las u n d o u b t e d l y been
r e s p o n s i b l e for a substantial
of the great

loan e x p a n s i o n
has the

past
to borrow,
more than usual
Ioans will get
since

lenders

there

is- probably

danger that bad
into
i ikew ise

os

that our defense

industries be

provided with the n e c e s s a r y capital.
But as defense
for

loans

less essential

must be reduced
the

increase,

loans

civilian purposes

if we are to avoid

inflationary c o n s e q u e n c e s of

an o v e r - e x p a n s i o n of bank credit.
You are no doubt aware that
total

bank

loans

in the

ended June 30 showed the

12 months
largest

increase ever recorded for a
c o m p a r a b l e period —

an

increase

binning

industry has a grave

responsi bi i ity to shape
and

its loan

investment polic i e s toward

a s s u r i n g the financial
of our national

soundness

economy.

A primary reou isi te now

is

to hold u n n e c e s s a r y borrowing to a
minimum.

As the defense effort

b r o a d e n s -- ano
rapidly n o w

it is exp a n d i ng
the volume of bank

loans n e e d e d for d e f e n s e uses may
be expec t e d

to rise.

it is essential

c 8 l-

”

S ~

In this effort

,

it is not enough

that we strive to keep our economy
strong and stable d u ring the years
of the defense p r o g r a m alone.
is highly

It

important that we build

the foun d a t io n now for a continued
healthy economy after the security
of our Nation

is assured.

In the fight to preserve a
stable economy,

the banking

holds a f r o n t l i n e position.
principal

industry
As the

s u p p l i e r s of credit,

the

38£

tasK of building a powerful military
establishment to forestall threats
to our national

security,

is that

of building a sound e c o n o m y to
c o m b a t threats to our e c o n o m i c

f . fSS.

security.
Those who are able to
contr ibute to the actual
s t r e n g t h e n j n g of our economy may
well

feel

that they are fi

n g

s h o u I d e r to shoul d e r with their
sons at the front
c o m m u n ist

in the war against

ess ion

must

in preser v

lives on
must
to assume an
pons ibi Iity in

importance of the

of our Nation and the freedoms
we cherish.

The stakes are high,

ana we can afford no delusions as
to the aims of the aggressors who
seek to engulf the world, and
principally us, with

a

flood tide

of communism'-- a tide designed to
wipe out the ideas and ideals which
have inspired tne life of our Nation
and which stand as a beacon of hope
to other freedom-Ioving nations.
I!|j|

To insure a successful outcome

3

sounder banking practices, to which
our banking structure owes much of
its present strength,
I appreciate especially the
part you have played in welding our
dual banking system into a
smooth-working unit, through the
coordination of your thinking and
policies with those of the Federal
authorities, especially with the
ComptroI Ier's office, which
/

is part of the Treasury.
when the internationaI

% -

Today,

your

a
o

c

!tees me as

1C

you are an

onA

\3>

many thi

to

annua I
soc iatÌon marns a full

ha

your group has
itself to
als

of better banning
you
I role in

of more

p
r*
v> I

S

o I sv'e'd i

deve Iooment

icient, more un

RESPONSIBILITY AND OPPORTUNITY
I was very pleased to be

asKed

by your President to speaK on this
program, for it gives me a chance to
visit with you again and to ta I k over
matters

of mutual interest.

I recall

with great pleasure the many happy
associations 1 have had with your
group

in past years, and especially

the last meeting

I attended in Reno,

Nevada, two years ago.

I always find

mmm

bt

ssmttm smsm

BEFOSE THF.
50TH ¿MM, C o m m e » OF THE
NATIONAL ASSOCIATION OF SCPEHTIBOBS OF STATE BANKS

st . louis, ussotna
SOTSMKB

27, 1951

495
TREASURY DEPARTMENT
Washington

The fo llo w in g a d d re ss by S e c r e ta r y Snyder
b e fo re the F i f t i e t h Annual Convention o f
the N atio n al A s s o c ia tio n o f S u p e rv iso rs
o f S ta te Banks a t the J e f f e r s o n H o te l,
St. Louis, Missouri, is scheduled for
delivery at 2t 15 P
3: IS P m.
t'Eursday.' September 27, l9bl. and is for
release at tfiaftlmeV *'.**.*------ ------

RESPONSIBILITY AND OPPORTUNITY
I was very p le a se d to be asked by your P re sid e n t to speak on
th is program, f o r i t g iv e s me a chance to v i s i t w ith you a g a in and
to ta lk over m a tte rs o f m utual i n t e r e s t . I r e c a l l w ith g r e a t
pleasure the many happy a s s o c i a t i o n s I have had w ith your group in
past y e a r s, and e s p e c i a l l y the l a s t m eeting I atten d e d in Reno,
Nevada, two y e a r s ag o . I alw ays fin d a f r ie n d ly in fo r m a lity about
your m eetin gs, which s t r i k e s me a s perhaps one o f the r e a so n s why
you are a b le to g e t so many th in g s done.
This f i f t i e t h annual m eeting o f your A s s o c ia tio n marks a f u l l
h alf century in which your group h as devoted i t s e l f to prom oting
the id e a ls o f b e t t e r banking. Over t h i s lon g p e rio d you have p lay ed
a s u b s ta n tia l r o le in the development o f more e f f i c i e n t , more
uniform, and sounder banking p r a c t i c e s , to which our banking
structu re owes much o f i t s p re se n t s tr e n g th ,
I a p p re c ia te e s p e c i a l l y the p a r t you have p lay ed in w elding
our dual banking system in to a smooth-working u n it , through the
coordination o f your th in k in g and p o l i c i e s w ith th o se o f the F e d e ra l
a u th o r itie s, e s p e c i a l l y w ith the C o m p tro lle r's o f f i c e , which i3
part of the T re asu ry . Today, when the in t e r n a t io n a l emergency has
placed an in c re a se d s t r a i n on the N a tio n 's economy, t h i s sh a rin g
of common alm s and common p o l i c i e s in the banking f i e l d w i ll
contribute much to the o v e r - a ll su c c e ss o f our d e fe n se e f f o r t .
As a N ation we a re fa c in g today the most c r u c ia l t h r e a t th a t
has yet confronted u s. Upon the way we u n ite to meet t h i s th r e a t
depends the very e x is te n c e o f our N ation and the freedom s we c h e rish .
The sta k e s are h ig h , and we can a f fo r d no d e lu sio n s a s to the aims
of the a g g r e s s o r s who seek to e n g u lf the w orld, and p r i n c i p a l l y u s,
S-2Ö27

496
-

2

-

with a f l o o d t i d e of c o m m u n i s m -- a t i d e d e s i g n e d to w i p e o u t the
ideas a n d i d e a l s w h i c h h a v e i n s p i r e d the l i f e o f o u r N a t i o n a n d
which s t a n d as a b e a c o n o f h o p e to o t h e r f r e e d o m - l o v i n g n a t i o n s .
To i n s u r e a s u c c e s s f u l o u t c o m e of
our great defense effort
we m u s t a l l s h a r e i n t h e r e s p o n s i b i l i t i e s w h i c h a r e ours, as g r o u p s
and as i n d i v i d u a l s , i n p r e s e r v i n g o u r d e m o c r a c y .
N o t o n l y the
s e l e c t e d f e w w h o a r e a s k e d to r i s k t h e i r l i v e s o n the b a t t l e f r o n t ,
but a l l o f us o n t h e h o m e f r o n t , m u s t be w i l l i n g to a s s u m e a n
increased r e s p o n s i b i l i t y in d e v e l o p i n g our n a t i o n a l strength.
C l o s e l y p a r a l l e l i n g t h e i m p o r t a n c e o f t he t a s k of b u i l d i n g a
p o w e r f u l m i l i t a r y e s t a b l i s h m e n t to f o r e s t a l l t h r e a t s to o u r
n a t i o n a l s e c u r i t y , is t h a t o f b u i l d i n g a s o u n d e c o n o m y to c o m b a t
threats to o u r e c o n o m i c s e c u r i t y .
T h o s e w h o a r e a b l e to c o n t r i b u t e to the a c t u a l s t r e n g t h e n i n g
of o u r e c o n o m y m a y w e l l f e e l t h a t t h e y a r e f i g h t i n g s h o u l d e r to
sho u l d e r w i t h t h e i r s o n s a t the f r o n t i n the w a r a g a i n s t c o m m u n i s t
aggression.
I n t h i s e f f o r t i t is n o t e n o u g h t h a t w e s t r i v e to k e e p o u r
e c o n o m y s t r o n g a n d s t a b l e d u r i n g the y e a r s of the d e f e n s e p r o g r a m
alone.
I t is h i g h l y i m p o r t a n t t h a t w o b u i l d the f o u n d a t i o n n o w
for a c o n t i n u e d h e a l t h y e c o n o m y a f t e r the s e c u r i t y o f o u r N a t i o n
is a s s u r e d .
I n the f i g h t to p r e s e r v e a s t a b l e e c o n o m y , the b a n k i n g i n d u s t r y
holds a f r o n t l i n e p o s i t i o n .
A s the p r i n c i p a l s u p p l i e r s o f c r e d i t ,
the b a n k i n g i n d u s t r y h a s a g r a v e r e s p o n s i b i l i t y to s h a p e i ts l o a n
and i n v e s t m e n t p o l i c i e s t o w a r d a s s u r i n g the f i n a n c i a l s o u n d n e s s of
our n a t i o n a l e c o n o m y .

A p r i m a r y r e q u i s i t e n o w is to h o l d u n n e c e s s a r y b o r r o w i n g to
a minimum.
A s the d e f e n s e e f f o r t b r o a d e n s —
a n d it is e x p a n d i n g
rapidly n o w -- the v o l u m e o f b a n k l o a n s n e e d e d f o r d e f e n s e u s e s
nay be e x p e c t e d to r i s e .
It is e s s e n t i a l t h a t o u r d e f e n s e
i n d u stries b e p r o v i d e d w i t h t he n e c e s s a r y c a p i t a l .
B u t as d e f e n s e
loans i n c r e a s e , l o a n s f o r l e s s e s s e n t i a l c i v i l i a n p u r p o s e s m u s t be
reduced i f w e a r e to a v o i d t h e i n f l a t i o n a r y c o n s e q u e n c e s o f a n
o v e r - e x p a n s i o n of b a n k c r e d i t .
Y o u are no doubt aware that
ended J u n e 3 0 s h o w e d t he l a r g e s t
c omparable p e r i o d —
an increase

t o t a l b a n k l o a n s i n the 12 m o n t h s
increase ever r e c o r d e d for a
of $ 1 2 b i l l i o n i n a s i n g l e y e a r .

Some of this borrowing was basically of a speculative n a t u r e .
S-2827

- 3 As experience has demonstrated, when prices are rising and
business profits are high there is often a tendency to assume that
those trends will continue.
Both borrowers and lenders are
inclined to evaluate the high profits as if they are more or less
permanent. Under such conditions, nearly everyone wants to borrow
money in order to buy something, build something, or expand his
business.
This human tendency has undoubtedly been responsible
for a substantial part of the great loan expansion of the past
year. When everyone has the urge to borrow, there is probably
more than usual danger that bad loans will get into bank
portfolios, since lenders are likewise affected to some extent by
the same over-optimism.
The buying boom of the past year has brought new problems in
appraising the soundness of loan collateral.
This responsibility
of the banking system is made much more difficult this year by the
many uncertainties in the present business outlook.
The conflict
between deflationary factors in some parts of the civilian economy,
and inflationary forces arising from the defense program, creates
an unusual variety of risks.
Inventory losses may be suffered
by some businesses, where demand has suddenly fallen off or prices
have dropped sharply, while other businesses may reap unusual
profits. Under such circumstances, an unusually careful selection
of loans and a diversification of risks is clearly called for.
The responsibility of bank supervisors is increased by the
fact that bank capital in relation to risk assets is lower than at
, any previous time in the past two decades.
The proportion of
capital accounts to risk assets last December 30, for all insured
commercial banks, averaged less than 18 percent.
This compares
with a prewar figure of over 27 percent in 1939.
I have spoken of some of the increasing responsibilities which
are falling on the banking system in assuring the effective
functioning of our great defense effort. You, as bank supervisors,
can do much to bring to the many bankers with whom you come in
contact the vital importance of their participation in this effort.
Moreover, you can point out to them how they, by accepting their
responsibilities, not only have an opportunity to serve their
Nation but at the same time have unusual opportunities for
strengthening the future security of their own banking institutions
The present financial situation offers an opportunity seldom
equalled for improving a bank's loan position.

S-2827

4S8
- 4 -

Secondly, conditions have become more favorable for building
up bank capital, both through retention of earnings and through
sale of capital stock. Bank operations recently have profited
from the high demand for loans, and banks generally are now in a
very favorable position for building up capital funds.
Gross
earnings of all insured commercial banks have been climbing since
1938. They amounted to over 8 percent of capital accounts last
year, a figure exceeded only during the war years.
Capital accounts have, in fact, been expanding steadily since
before the war, but the increase has not kept pace with the rise
in risk assets.
Last year, capital accounts of insured commercial
banks increased by $632 million, the major part coming from
additions to surplus.
But risk assets in the same period rose by
more than $11 billion.
Deposit insurance should not be regarded as a substitute for
adequate capital.
The fact that the present low capital ratio is
close to those at the top of two major speculative credit booms
should warn the banking system of the need for rebuilding capital
accounts.
A third opportunity for banks today lies in the better
prospect of encouraging savings during this period of full
employment and high incomes. Department of Commerce estimates
indicate that personal saving in the second quarter of this' year
increased by a greater amount than in any quarter since 1945.
While this may have reflected an unusual situation, there is littlo
doubt that savings are easier to accumulate today than they are
likely to be in more normal times.
Our Defense bond campaign this fall, with its nation-wide
advertising program, is doing a great deal to make people "savings
conscious.” Our objective, as you know, has been not merely to
sell savings bonds, but to promote the habit of thrift.
The
tremendous increase in all forms of personal savings during the
past ten years, I believe, has reflected in part the effectiveness
of this program.
In our present campaign, we are stressing the fact that a
period of high economic activity like this, when incomes are high
and nearly everyone has a job, presents a golden opportunity to
every individual to accumulate a financial reserve.

S-2827

499
- 5 -

The development of a habit of systematic saving contributes
to economic stability in both booms and recessions.
There is one other matter in which banks might well take
better advantage of their present opportunities.
That is in
developing a better trained personnel.
To raise the level of
understanding of banking and financial matters among bank
employees, I believe, would not only be worth money to the
individual bank, but would benefit the entire banking industry.
Bank supervisors can have considerable influence toward such
improvement. Excellent work is being done today in providing
advanced training by such institutions as the American Institute of
Banking, the Rutgers Graduate School of Banking, the University of
Wisconsin School of Banking, the Pacific School of Banking, as well
as by various others. An Increase in demand .for such facilities
would undoubtedly give rise to many more schools throughout the
country designed to meet the special needs of bank employees.
Modern day banking calls for a working knowledge of many
aspects of economics as well as finance and business.
Probably no
one problem is giving our bankers more concern today than the
related problems of inflation and deflation, particularly in view
of their importance in bankers' decisions on investment and loan
programs,
For instance, today, on the one hand, we read in the papers
that commodity prices have fallen; that warehouses are bulging with
inventories; that retail buying has fallen off; that stores are
having difficulty moving their stocks; that lack of demand has
caused cutbacks in consumer goods production; and that these and
other indications point to a deflationary situation.
On the other hand, we are warned that the situation is actually
inflationary, and that the important thing is to look ahead to
shortages of consumer goods when the defense program gets fully
under way.
The suprising thing is that both of these statements are
largely true. When consumers and distributors over-bought last
fall and early this year, in fear of imminent shortages, they
overlooked two important things; the length of the tooling-up period
required for defense production, and the immense productive power
of American factories.
The prices that were forced too high are
now being adjusted, and the goods that were bought in excess of
needs are being digested, while consumer buying lags.
3-2827

500
- 6 -

But the underlying inflationary forces are already making
themselves felt. Despite all the talk about current deflationary
pressures, the broad wholesale price index of the United States
Department of Labor -- made up of nearly 900 commodities -- has
declined no more than 4 percent from its extreme peak, and has
shown practically no further decline since July. Very definite
and positive inflationary forces account for this firmness in the
price index.
Personal income is steadily rising, while the production of
civilian goods, to be bought with this income, is affected by
increasing restrictions on the use of critical materials needed for
defense. Rapidly expanding defense expenditures have shifted the
Federal Budget heavily to the deficit side, even on a cash basis.
Bank credit, after leveling out for several months, has again
started to expand.
Business loans, real estate loans, and '’other"
loans of weekly reporting member banks, in recent weeks, have all
reached new record high levels.
The effect of these pressures on prices and living costs may
be held back for a time, however, while present excess supplies of
various consumer goods are being liquidated.
But the most
Intensive phase of our rearmament effort lies ahead of us.
In the
coming months we will inevitably see an increasing impact of
military production on the civilian economy - - a situation in which
inflation thrives. Under the existing revenue tax laws, not
including the tax bill being considered by the Congress, a budget
deficit of about ¿10 billion is indicated for the current fiscal
year. In the .following year, with current tax rates, the deficit
may be twice this figure, or more, under the present schedule for
defense expenditures.
A Government deficit, of course, means that excess funds are
being added to the spending stream.
If the individual funds are
spent, prices will be bid up, and another round of inflation will
get under way.
If the money is saved, price advances may be
forestalled, and the funds will be available for spending later
over a more extended period.
During this defense emergency, we can do much toward
maintaining sound and stable conditions by avoiding the many
potential sources of inflation in the civilian economy.
In the
efforts of your organization to maintain a sound banking system,
X know you will keep in mind the importance of the various
operations of state banks in the economic welfare of this country.
S-2827

501

- 7 -

I know that you will take advantage of the many opportunities
you have for bringing about a better understanding of the role
that banking and bankers can play in our great defense effort.
When people throughout the Nation share in a united effort toward
a common goal, past experience tells us that the goal will be
reached.
In this light, we have every reason to look forward with
confidence to success in maintaining a stable and prosperous
economy.

0O0

S-2827

f a l i z a t i o n that d e f e n s e
e v e r y b o d y * « job.

This

to relax our efforts,

Is no
it

time 'for full p a r t n e r s h i p
lob ahead.

is

is
for

SOS
SOS

4 7

-

SOS the ..idol Iaf..$ we save today a r e
build i n g power

for the itati.on --

not only economic p o w e r to baca up
our great d e f e n s e effort,

but ®

re s e r v o ir of p u r c h a s i n g power for
the future s tability and prosperity
of our Nation when the p r e s e n t

mm

em e r g e n cy
reach

is over.

Vta need to

into every home and every

comn unity throu g h ou t our
bring

land and

to every American the personal

savings b o n d s ; help sell

bonds to

mpos

ers

D e f e n s e Bond Drive,

#e ire again

m a r s h a l l i n g a I I our forces
cause of thrift.

In the

Behi n d this Drive

shou l d be put every ounce of the
power of e v e r y good citi?en ss
i v o l u n t e e r worser and a voluntary
saver for the d e f e n s e of America
and for the future of America.
Ail of us m u s t r e c o g n i y e that

SOS

t i ve balanced defense

out an e
program.
country,

The

Individuals of our

In whom rests the final

strength and power of our Nation,
m u s t be e n c o u r a g e d to ta«e as active
a pa r t as d o s s idle 'In this effort.
Everybody, of course,

wants to he Id

In the d e f e n s e of our country;
1€

but

many people do not Know whet they,
persona Ily, can
Drive

The D e f e n s e

is giving those peon It

!

ir answer

United States

302

44

the very e xistence of our Net Jon
end the freedoms we c h e r i s h —
freedom of thought and action,
f r e e d o m of worship,

freedom to

r

gov e r n ourselves;

in fact, til those

L

freed o m s that m a x e up

liberty of the

human spirit.
To

insure a successful

of our great defense effort,
essential

outcome
It is

that we m a i n t a i n the

stability of our economy while at
the same time we e n d e a v o r to worx

015

Üt'¥ -r

tri Iined

it

ff

st 8 level of s round $2

€

t© fifly

i

I am especially pleased to not® th
substantial

one:

increase /in holdings of

particular type of liquid asset

United States savings
Ind Îv icue Is now bold â p p r o x irately
%Av

b i l l i o n , of e l l

outstandlni

to ta I

amount

a I one

about

of
1 3 4

<5

m-_ m

t $57-1/3 H i l l i i p

n

E bonds

-

1 / 2

bill! n,

rester than It th IP

H

I

t s nd 1
is

or

nd

4

bill

in

iid
h,

""’S

59

could spend the Ir current Incomes
|,

~l

*.

: '

’

£

'-

“|

freely because they had i large
reserve of savings. This has
been an Important factor in the
unprecedented prosper Ity which th
country has enjoyed sinee the end
of the war
Consumer purchases in the
postwar period In the aggregate
i—

1

were made out of current income
The total volume of liquid
asset holdings of individuals

I¡quid assets — barm accounts,
cash, and holdings of Government
securities — to a record level
approxinut fug

$ 2 0 0

billion.

These wartime savings out into
the hands of the people of the
country a purchasing power potential
which encouraged them to go out
during the postwar period and buy
goods and services which otherwise
they might not
have felt
they could
I|
|
afford to buy. They felt that they

12

conclude from this development that
the end of inflationary dangers has
come.

Indeed, I am certain that

every one here fully understands that
the planned accelerated expansion
of military output In the months
•'. P W *I

ahead will, of necessity, produce
new inflationary pressures.
There are many things that each
one of us can do to help to Keep
inflationary pressures under control.
Most are little things in themselves;

213

strong inflationary
threatenei

pressures' wh «ch h

year a

ft C

if le

. mig

«etKen our

tive ma
extent es to interfere seriously
witil

of vital defens

£1

goods -the cost

c jp p c

f» ft

1

increas I

Ii vIng

the upward sweep of prices has
encountered some resistance in
A

nt

»

34

IB

partnership of women and it has
received a strong impetus from
their cooperation.
:;'V |

The present Drive has three
main objectives: To encourage
continued practice of thrift and
savings on the part of every
individual; to maintain and increase
the wide distribution of the public
debt; and to discourage inflationary
spending.
All

of us have been acutely

3

p f gn sg

I I its aspects

Bond d p o g r a m

is an essentia!

ingredient of our h o m e - f r o n t defense

off ers

It is a d e f e n s e activity
w Ide

field of service for women

Many women are not so

w /

(

Si
tuate

it they can join the
s.

o r fto r k

in

can t
efense service.
suEff es ted

C* iPk

As

But s ! I

!s

I have already

v ÎFtp's bond nrorra

m

r î Iy to

ch î Idren
ir actuaI
stamps and bonds
they

buy i

n
%Mr

is

Iearn s o m e t h i n g
W M
W!

0

thr Îft.

every s

buy bicy c l e s or roller
SKates,

they

still

Iearn

ins: about

putti

in small

amounts

wh ich
in the future

in order

a heavy rainstorm.
Another

important activity --

and one which is being carr i e d
on p r i m a r i l y by women --

is the

job being done in the schools.
M i l l i o n s of school c h i l d r e n
thr o u g h ou t

the c o u n t r y study about

savings bonds and savings stamps
in their grammar school classes.
Every month we sell

more than

afternoon.
was truly

Their p a t r i o t i c spirit
inspiring,

for

it so

New Mexico,

by a few energetic,

p r o g r e s s i v e b u s i n e s s m e n and women
who had v i s u a l i z e d what c o u l d be
•*

done to sell

thrift to their

fellow-townspeople.
of 30 days,

111

In a period

the c i t i z e n s of

Las C r u c e s p l aced the Payroll
Plan

Savings

in 93-1/2 p e r c e n t of the firms

in town,

both

large and small.

Women carried an
the sales

important share of

load; and

it was the

T r e a s u r y ’s p l e a s u r e to award a

city or town s
To qua 1 1fy
Flag C i t y
of a I I

firms,

or a s u f f i c i e n t

number of firms to a c c o u n t for
p e r c e n t of
population»

deve

3

must be enrolled

t Las C r u c e s

in

Savings I? Ia n ; and a ■targe p e r centage
of these p u r c h a s e r s arc women.
upwa r d trend of payroll
during

jj

savings

p e r i o d of u n c e r t a i n t y

our national
a c hievement.

life

The

in

is ® n o t a b l e

It is an a c h i e v e m e n t

of which the many t h o u s a n d s of
v o l u n t e e r s who have been worn ing
to p r o m o t e the payroll

savings

plan can be justly proud.
An o u t g r o w t h of the Payroll

26
program.
acti v e

Women have taxen an

interest

in ail of these

p Ians
•Me Payroll
one of the
promotion

is

important m e t h o d s of
in a p r o g r a m for selling

bonds to small
the war,

Savings P l a n

investors.

During

it had tre m e n d ou s s u c c e s s .

At the p r e s e n t time,

between five

and six m i l l i o n p e o p l e e m p l o y e d

in

t h o u s a n d s of c o m p a n i e s are buying
savings bonds under the PayroI I
t

jncrease
savings bonds to small
Various promotion

City enterprise,

SChOOi

S8V

S t a t e and

local a d v i s o r y chairmen

and aided by more than 25 national
a d v i s o r y committees,

c a r r i e s forwa

final p u b l i c a t i o n or broadcast;advert Is

is p r o v Îded by

20

0£3'

As c h e m i s t for the M s n u f a c t u r e r s
Mutual

Life

assis t e d

Insurance C o m p a n y

in maning a s a n i t a t io n

survey of the waters of
Massachusetts.

A little

woman physician,
made

later,

a

Eliza Mosher,

important studies

in posture

and designed the seats

in several

of rapid transit s t r eetcars

Probah I y m a n y
that delightful

of you have read
boo k

MCh ® 8 P © f* by

the Dozen*1: but even those

m l

íes

this c e n tury

In

In
accomplishment

, that

in v a r i o u s professional

c e n t u r y , Ellen Richards,
chemist,

of

in the first

n o t a b l e studies

pp Iication of heat to

s
in
Hi

I j*i

SE.B

8

to r e l e a s e women from former

laborious

and t i m e - c o n s u m m g h o u s e h o ld duties,
givi n g them more time for wider
d e m o n s t r a t i o n of their talents.

In

florid War 1 1 , many women r e s p o n d ed to
the N a t i o n ’s need for an emergency
labor f o r c e and,
replaced men

in many cases,

they

in m u n i t i o n s plants and

with which they p e rformed these
jobs

is part of the proud reco r d of

our prod u c t io n achievement.

IT
But

it Is not only.in the field
#v,

blic service that the
has

increased.

importance

Fifty

a g o , women r e p r e s e n t e d only

18

ker s

time*

prop o r t io n

is

per cent.

increase r e f l e c t s the
c h a n g i n g economic and social

which have

condition

it increasingly

c u s tomary for women to w o r k outside
of the home.

The d e v e l o p m e n t of ne

labor-saving produ c t s and technique
, of course,

he I

C

first woman to become

Treasurer

of the U n i t e d States.

io«tn

long have occupied seats

in the

Senate and the House of
Repr e s e nt a t i v e s ,

and

U n i t e d States Courts.'

in the
Such

h o n o r s a r e now a c c e p t e d as normal
and natural.

This

is a far cry

f rom the hostile attitude against
w h i c h Mrs.

Catt and Miss Anth o n y

waged their m i l i t a n t campaign.

15 -

women

in our history to be

elected to this

important office.

One of these women -- Nell i e
Ross

of Wyoming --

of' the Mint.

In

year that Mrs.
of the Mint,

Tayloe

is now Director

1933,

the same

Ross became Director

Frances P e r kins

became the f i r s t woman cabinet
member

in our history.

at your annual

banquet

The speaker
last year --

Georgia Nee.se Clark -- was the

A

r. r p

O tw

mm

|

mm

both through their accepting
political offices and by organizing
groups • - such is the League of
§©f8tti Voters, the National Council
of Jewish Women,

the National

Council of Catholic Women, and the
ilional Council of Negro Aomen -I working for the betterment of
>raI, cultural and political

life.

in 1924, two women were
ected as State Governors -- in

13

-

At the turn of the century,
C a r r i e Chapman Catt and Susan B.
A n t h o n y were

leading an a r d e n t

camp a i g n for the e s t a b l i s h m e n t of
women's suffrage.

Twenty years

later, t h a t right was e s t a b l i s h e d
by C o n s titutionaI
that time, women

Amendment.

From

have assumed an
/

increasingly
all

important place

of our national

Their e n t r a n c e

in

activities.

into the political

sphe r e has been most s i g n i f i ca n t

a s s i s t i n g most p r o d u c t i v e l y

in the

a c t i v i t i e s of this Committee.
'• A
...

y

'

"^Wheh I m eet with women bond
v o l u n t e e r s or with any g a t h e r i ng
of women

in the busi n e s s and

professional

fields,

I am

impressed

by the wide scope of w o m e n ’s
earn e d r e c o g n i t i o n
life,

in our national

fte have but to

ioon bacK

some 50 years to see a p i c t u r e
sharply

in c o n t r a s t to the one

p r e s e n t e d today.

one who perhaps would prefer to
remain anonymous.
to buy some

She d e t e r m i n e d

" e x t r a ” bonds for

herself during the Drive,

and to

raise the price of them -- $300 -she sold two Jersey calves.

She

f

writes;

"I think the Jerseys,

which have gone to join a herd
Arkansas,

would be very proud

in
if

they knew of t h e i r . c o n t r i b u t i o n . ”
in c o n n e c t i o n with the present
D e f e n s e Bond Drive,

women residents

the c h a l l e n g e of the Soviet threat.
I ’m sure your St.

Louis group

s u b s c r i b e s w h o l e h e a r t e d l y to her
words.
In Newton,
Kirk

Kansas,

Miss Hazel

is serving as public relations

chai r m a n for The Busi n e s s and
Professional

W o m e n 's State Federation

and s h e ’s doing a sple n d i d job
seei n g to

in

it that the enti r e State

u n d e r s t a n d s why

i t fs important to

buy D e f e n s e Bonds.*

Part of her

movi e.
came

In * » and
%

Jk

É

Îf

i

É

in this job

can't

too many young

That's the answer of an
o u t s t a n d i n g American woman to

1 **

d'fcS

Let me mention here a few
women who arft back at work as

volunteer leaders in D e f e n s e Bond
selling.
of you,

• I am sure that to many
their n a m e s will

be

* **
nil!

B

Out in Cheyenne, Wyoming,

Mrs.

£.

T. Herring served as t

tate w o m e n ’s chair m a n for savings
bonds during the war

now

s h e ’s back at the old job, with
r e n e w e d enthusiasm.
this way;

Che put

it

new Drive,

your national

exec u t i ve
I

secretary. M iss Laura Lorraine,
sent us a fine t e l e g r a m p l e d g i n g
anew your cooperation.
grateful

We are

for her message, a n d

the sincerity that we know
back of it.

is

We know that business

and professional
careful

for

women are properly

with their commitments,

but that when t h e y do give one,
they fulfil

it.

Y£3

*
%tr

ftrten s ne goes out to sell
bonds, she Knows her product,

bne'

nas f a 11 © in, ooncts, and she conveys
that faith to others.

That’s a

most effective combination.
four gifeit organÎzation, with
its more than i60,000 members in
2,700 clubs, ana its informed
interest in economic problems,
has always been strongly
c ofist11ten to the savings •
bonus cause.

At the start of the

8£2

2

of this week -- "Full Partnership
for the Job

If

-- in its

app iicat ion
Drive which has just been opened.
There are sound reasons why
the Savings Bonds Program depends
the woman volunteer so heavily.
has vision
ideals, and the v

to carry

them out. She knows how to organize
how to get people to work together

It is an unusual privilege
.for me to address such an
outstanding group of American
women.

You are assembled here

to celebrate National Business
Women!s

Week, which calls attention

to the activities, the achievements
and the responsibiIities of women
in the business and professional
world.

1 am honored that you of

the St. Louis Club have invited
me to discuss with you the theme

m m s s 8ï ægpiftï a n »
Aï THE

«P

À

louis

St. Louis, Missouri

September 27, 1$$X

eTore*
us ine ss and Professional Women1s
Club of St. Louis at the Chase Hotel,
St. Louis, Missouri, is scheduled for
delivery at 8:00 p«m.~CDT (9:00 p«m. EDT)
Thursday, September 27, 1951> and is for
release at that time.

TREASURY DEPARTMENT
Washington

The following address by Secretary Snyder
before the ^Business Women*s Weekn meeting
of the Business and Professional Women*s
Club of St# Louis at the Chase Hotel,
St# Louis, Missouri, is scheduled for
delivery at 8:00 p . m / T I S T T ^ i T ^ ^
Thursday," Sept êmber''^,"!9gï, and. Is' Tor^
release at that time» "
_nT

It is an unusual privilege for me to address such an outstanding
group of American women# You are assembled here to celebrate National
Business Women*s Week, which calls attention to the activities, the
achievements and the responsibilities of women in the business and
professional world# I am honored that you of the St# Louis Club have
invited me to discuss with you the theme of this week — "Full
Partnership for the Job Ahead" — in its application to the Defense
Bond Drive which has just been opened#
There are sound reasons why the Savings Bonds Program depends on
the woman volunteer so heavily#
She has vision# She has ideals, and the vigor to carry them out#
She knows how to organize; how to get people to work together.
When she goes out to sell bonds, she knows her product# She has
faith in bonds, and she conveys that faith to others# That*s a most
effective combination#
Your great organization, with its more than 160,000 members in
2,700 clubs, and its informed interest in economic problems, has always
been strongly committed to the savings bonds cause# At the start of
the new Drive, your national executive secretary, Miss Laura Lorraine,
sent us a fine telegram pledging anew your cooperation# We are grateful
for her message, and for the sincerity that we know is back of it# We
know that business and professional women are properly careful with their
commitments, but that when they do give one, they fulfil it#
Let me mention here a few women who are back at work as volunteer
leaders in Defense Bond selling# I am sure that to many of you, their
names will be familiar#

5 5 3

-

2-

Out in Cheyenne, looming, Mrs, E# T* Herring served as the State
women*s chairman for savings bonds during the war. And now she*s back
at the old job, with renewed enthusiasm# She put it this way:
"Here we are again# In a movie, you say *here*s where I came
in*, and you get up and go out# But in this job you can*t get up and
go out# ¥e*ve got to pitch in# For we have too many young people
depending on us to save the country for them so they may lead happy,
independent lives as free individuals#"
That*s the answer of an outstanding American woman to the challenge
of the Soviet threat# I*m sure your St# Louis group subscribes whole­
heartedly to her words#
In Newton, Kansas, Miss Hazel Kirk is serving as public relations<
chairman for The Business and Professional Women*s State Federation, and
she*s doing a splendid job in seeing to it that the entire state under­
stands why itfs important to buy Defense Bonds# Part of her schedule
is to have two fine Treasury films — "Power Behind the Nation," and
"America the Beautiful" — shown at public meetings all over Kansas.
¥e have a supply of those films for anyone else who wants to make
similar use of them#
We had a report from a woman volunteer down in Texas — one who
perhaps would prefer to remain anonymous# She determined to buy some
"extra" bonds for herself during the Drive, and to raise the price of
them — 1300 — she sold two Jersey calves# She writes: "I think the
Jerseys, which have gone to join a herd in Arkansas, would be very
proud if they knew of their contribution#"
In connection with the present Defense Bond Drive, women residents
of Cedar City, Utah, decided to show the men folks of the town how a
Defense Bond campaign should be conducted# They succeeded so well that,
on the first day of the Drive, Cedar City over-subscribed the quota
which it had set for itself. This is but a simple demonstration of the
accomplishment that women can achieve when they have aroused their
determination#
A few weeks ago, I had the pleasure of meeting, in Washington,
with the Executive Committee of the National Women* s Advisory Committee
for Savings Bonds* That meeting was most inspiring# The National
Committee has been doing an excellent job# Your own Miss Margaret
Hickey is one of its prominent members, as is your National President,
Judge Sarah T# Hughes, of Dallas, Texas* Throughout the entire country,
business and professional women have been assisting most productively
in the activities of this Committee#

554
- 3 -

When I meet with wcmen bond volunteers or with any gathering of
women in the business and professional fields, I am impressed by the
wide scope of womenfs earned recognition in our national life* We
have but to look back some $0 years to see a picture sharply in
contrast to the one presented today*
At the turn of the century, Carrie Chapman Catt and Susan B#
Anthony were leading an ardent campaign for the establishment of
women»s suffrage, Twenty years later, that right was established by
Constitutional Amendment* From that time, women have assumed an
increasingly important place in all of our national activities*
Their entrance into the political sphere has been most significant*
both through their accepting political offices and by organizing
groups — such as the League of Women Voters, the National Council
of Jewish Women, the National Council of Catholic Women, and the
National Council of Negro Women — all working for the betterment of
moral, cultural and political life*
In 192lt, two women were elected as State Governors — in Texas
and Wyoming — the first wcmen in our history to be elected to this
important office* One of these women — Nellie Tayloe Ross of
Wyoming - - i s now Director of the Mint, In 1933$ the same year that
Mrs# Ross became Director of the Mint, Frances Perkins became the
first woman cabinet member in our history# The speaker at your annual
banquet last year — Georgia Neese Clark — was the first woman to
become Treasurer of the United States. Women long have occupied seats
in the Senate and the House of Representatives, and in the United
States Courts# Such honors are now accepted as normal and natural*
This is a far cry from the hostile attitude against which Mrs, Catt
and Miss Anthony waged their militant campaign#
But it is not only in the field of public service that the
importance of women has increased# Fifty years ago, women repre­
sented only 18 percent of all workers; whereas at the present time,
the proportion is 30 percent* This great increase reflects the
changing economic and social conditions which have made it increasingly
customary for women to work outside of the home* The development of
new labor-saving products and techniques for the home has, of course,
helped to release women from former laborious and time-consuming
household duties, giving them more time for wider demonstration of
their talents# In World War II, many wcmen responded to the Nation»s
need for an emergency labor force and, in many cases, they replaced
men in munitions plants and other heavy industries* The success with
which they performed these jobs is part of the proud record of our
production achievement#

555
m Ij. •»
Recognition of professional women has also shown great development*
In the early part of this century, when barriers of prejudice were almost
insurmountable, few women were able to win recognition for significant
accomplishment in various professional fields* But one does find re­
corded, however, that in the first decade of the century, Ellen Richards,
a chemist, made notable studies in the application of heat to food
materials* As chemist for the Manufacturers* Mutual Life Insurance
Company, she assisted in making a sanitation survey of the waters of
Massachusetts* A little later, a woman physician, Eliza Mosher, made
important studies in posture and designed the seats in several types
of rapid transit streetcars* Probably, many of you have read that
delightful book "Cheaper by the Dozen"$ but even those who have not,
are aware of the contribution made by Dr* Lillian Gilbreth, a manage­
ment engineer, in the field of efficiency in industry*
Today, women are found in considerable numbers in all the leading
professions* In fact, at the midpoint of the century, we find that
women have earned full partnership in practically every aspect of our
economic life* This is an important achievement in a great democracy
such as ours, where every individual counts and where the individual
citizens are the source of our national strength* Because of this
achievement, it is possible for me today to discuss with your organiza­
tion full partnership for the job ahead — full partnership in the
defense of our country through furtherance of the Defense Bond Drive*
No finer example of living democracy can be found than in our
Defense Bond program* It is conducted for the people by the people of
the United States, and gives every American the opportunity to share
directly in strengthening the economic power of our Nation. The
volunteers are the heart and core of the savings bond program* A
nation-wide organization of volunteers, under the direction of State
and local advisory chairmen and aided by more than 2£ national advisory
committees, carries forward the sales activities for United States
savings bonds* They donate their time and energy* Every savings bond
advertisement is donated — from the inception of the idea, through
production and final publication or broadcast* The advertising is
provided by the voluntary cooperation of advertising agencies, national
and local advertisers, and various promotional media*
The major objective of the savings bond program is to increase
the sales of savings bonds to small purchasers* Various promotion
plans have been designed to accomplish this objective — the Bond-aMonth plan, the Payroll Savings Plan, the Defense Bond Flag City
enterprise, the school savings program* Women have taken an active
interest in all of these plans*

The Payroll Savings Plan is one of the important methods of
promotion in a program for selling bonds to small investors# During
the war, it had tremendous success# At the present time, between
five and six million people employed in thousands of companies are
buying savings bonds under the Payroll Savings Plan; and a large
percentage of these purchasers are women# The upward trend of pay­
roll savings during a period of uncertainty in our national life is a
notable achievement# It is an achievement of which the many thousands
of volunteers who have been working to promote the payroll savings
plan can be justly proud#
An outgrowth of the Payroll Savings Plan is the Flag City
promotion, designed to get a large percentage of all the firms of every
city or town signed up for the Payroll Savings Plan# To qualify as a
Flag City, either 80 percent of all the films, or a sufficient number
of firms to account for 80 percent of the total working population,
must be enrolled in the Payroll Savings Plan#' The idea was developed
at Las Cruces, New Mexico, by a few energetic^progressive businessmen
and women who had visualized what could be done to sell thrift to
their fellow-townspeople# In a period of 30 days, the citizens of
Las Cruces placed the Payroll Savings Plan in 93~l/2 percent of the
firms in town, both large and small# Women carried an important
share of the sales load$ and it was the Treasury*s pleasure to award
a citation to MiSs Vivian Emigh, president of the Business and
Professional Women’s Club of Las Cruces, for the fine work done by
the Club in that Drive#
The Flag City idea has taken hold
Why, just the other day, in Galveston,
signed up 21k firms in one afternoon#
inspiring, for it so happens that they
rainstorm#

in many other cities and towns.
Texas, 102 women went out and
Their patriotic spirit was truly
were experiencing a heavy

Another important activity — and one which is being carried on
primarily by women — is the job being done in the schools# Millions
of school children throughout the country study about savings bonds
and savings stamps in their grammar school classes* Every month we
sell more than six million separate United States savings stamps,
primarily to school children# More important than their actual buying
of the stamps and bonds is the fact that they learn something about
thrift# If they redeemed every stamp they bought to buy bicycles or
roller skates, they would still learn something about the value of
putting money away in small amounts in order to buy something which
may be wanted in the future*
In all its aspects, the Defense Bond program is an essential
ingredient of our home-front defense# It is a defense activity which
offers a wide field of service for women# Many women are not so

557
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6-

situated that they can join the armed services or work in defense
plants« But all women can take part in this type of defense service,»
As I have already suggested, the savings bond program has leaned heavily
upon the partnership of women and it has received a strong impetus from
their cooperation»
The present Drive has three main objectives: To encourage con­
tinued practice of thrift and savings on the part of every individual;
to maintain and increase the wide distribution of the public debt; and
to discourage inflationary spending»
All of us have been acutely aware of the strong inflationary
pressures which have threatened our economic stability during the past
year and which, if left unchecked, might weaken our productive machinery
to such an extent as to interfere seriously with the output of vital
defense goods — besides greatly increasing the cost of living® Fortu­
nately, the upward sweep of prices has encountered some resistance in
recent months© But we must not conclude from this development that
the end of inflationary dangers has come© Indeed, I am certain that
every one here fully understands that the planned accelerated expansion
of military output in the months ahead will, of necessity, produce new
inflationary pressures®
There are many things that each one of us can do to help to keep
inflationary pressures under control* Most are little things in them­
selves; but, in the aggregate, they assume great importance. We can
refrain from unncessary buying of goods or services when such buying
would give rise to inflationary pressures on the price level* We can
regularly put away an extra portion of our income — put it into savings
of some type*
People were urged to save during World War II# And they did save#
They built up their holdings of liquid assets — bank accounts, cash,
and holdings of Government securities — to a record level approximating
$200 billion#
These wartime savings put into the hands of the people of the
country a purchasing power potential which encouraged them to go out
during the postwar period and buy goods and services which otherwise
they might not have felt they could afford to buy# They felt that they
could spend their current incomes freely because they had a large
reserve of savings# This has been an important factor in the unprece­
dented prosperity which the country has enjoyed since the end of the war*
Consumer purchases in the postwar period in the aggregate were made
out of current income* The total volume of liquid asset holdings of
individuals never declined — it has held steady at a level of around
$200 billion* I am especially pleased to note the substantial increase

in holdings of one particular type of liquid asset — United States
savings bonds; individuals new hold approximately $1*9 billion, of all
series, out of a total of $£7-1/2 billion outstanding. The total
outstanding amount of E bonds alone is about $3l*«l/2 billion, or
billion greater than at the end of World War II financing*
There has.been considerable talk — and even seme worry -- in
recent months because there has been some cashing of savings bonds in
connection with the rush to purchase consumer goods following the out­
break of hostilities in Korea» Actually, the total cashable value of
E bonds in the hands of individuals has remained practically unchanged,
I think we should keep in mind, too, that such talk of liquidation
overlooks the reasons why people bought savings bonds in the first
place, They bought them so that they would have the money to use for
some future need, pleasure or emergency# For some people, that time
came during the past year# They had been putting off buying an
automobile, or a radio, or a washing machine# After Korea, some
remembered the shortages of the last war and rushed to buy goods they
had been wanting or that they might want# But now this type of buy­
ing has died down; and we must try to keep it under control so that
we do not have another inflationary upsurge of prices#
As a Nation we are facing today the most crucial threat that has
yet confronted us# Upon the way we unite to meet this threat depends
the very existence of our Nation and the freedoms we cherish —
freedom of thought and action, freedom of worship, freedom to govern
ourselves5 in fact, all those freedoms that make up liberty of the
human spirit#
To insure a successful outcome of our great defense effort, it
is essential that we' maintain the stability of our economy while at
the same time we endeavor to work out an effective balanced defense
program* The individuals of our country, in whom rests the final
strength and power of our Nation, must be encouraged to take as
active a^part as possible in this effort. Everybody, of course, wants
to help in the defense of our country; but many people do not know
what they, personally, can do# The Defense Bond Drive is giving those
people their answerj Buy United States savings bonds; help sell bonds
to others*
With the opening of this new Defense Bond Drive, we are again
marshalling all our forces in the cause of thrift# Behind this Drive
should be put every ounce of the power of every good citizen as a
volunteer worker and a voluntary saver for the defense of America and
for the future of America«

559
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8

-

All of us must recognize that the dollars we save today are
building power for the Nation — not only economic power to back up
our great defense effort, but a reservoir of purchasing power for the
future stability and prosperity of our Nation when the present
emergency is over* ¥e need to reach into every home and every
community throughout our land and bring to every American the personal
realization that defense is everybody*s job* This is no time to relax
our efforts* It is a time for full partnership for the job aheado

0O 0

- 3 -*-TT y « r a

A M
any State, or any of the possessions of the United States, or by any local tax­
ing authority.

For purposes of taxation the amount of discount at which

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

Under Sections U2 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. 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 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 fran 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

October^h. 1951

» i-n 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.

October hf T9fl.

Cash adjustments will b

made for differences between the par value of maturing bills accepted in exchang
and the issue price of the new bills.
The income derived from Treasury bills, whether interest or gain from the
sale or other disposition of the bills, shall not have any exemption, as such,
and loss from the sale or other disposition of Treasury bills shall not have any
special treatment, as such, under the Internal Revenue Code, or laws amendatory
or supplementary thereto*
gift

The bills shall be subject to estate, inheritance,

or other excise taxes, whether Federal or State, but shall be exempt from

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

ladtirtririnrib
m

m

TREASURY DEPARTMENT
Washington

yf

FOR RELEASE, MORNING NEWSPAPERS,

Thursday, September 27» 1951

y j / __

»

n

r>^v Ay
/ f o J

The Secretary of the Treasury, by this public notice, invites tenders for
$ 1,200,000,000

a

>

91 -day Treasury bills, for cash and
fflfr
in the amount of $ 1,200.829.000.
maturing
October It, 1951__ jA° be issued on

or thereabouts, of

in exchange for Treasury bills

a discount basis under competitive and non-competitive bidding as hereinafter
provided.
will mature

The bills of this series will be dated
January 3, 1952

October It.

1951
> and
55*
, when the face amount will be payable without

j-T i ^j ||k y

interest.

They will be issued in bearer form only, and in denominations of

$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. October 1, 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 rnay 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 .

5G3
release m o r n i n g n e w s p a p e r s ,

Thursday,

S e p t e m b e r 27,

1951»

S-2629

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 $1,200,000,000, 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 O c t o b e r 4, 1951,
in the a m o u n t of $ 1 , 2 0 0 , 8 2 9 , 0 0 0 , to be i s s u e d on a d i s c o u n t basis
under comp 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 lls of this s e r i e s w i l l be d a t e d O c t o b e r 4, 1951,
and will m a t u r e J a n u a r y 3, 1952, 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.
T h e y w i l l be i s sued in b e a r e r f o r m only, a nd in
denominations of $1,000, $5,000, -'$10,000, $100,000, $ 5 0 0 , 0 0 0 , and
$1,000,000 ( 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, O c t o b e r 1, 1951.
Te n d e r s w i l l not 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 t e n d e r m u s t be for a n e v e n
multiple of $ 1 , 000, a nd in the case of c o m p e t i t i v e t e n ders the p r ice
offered m u s t be e x p r e s s e d o n the b a sis o f 10.0, w i t h not m ore tha n
three decimals, e. g., 99-925.
F r a c t i o n s m a y not be used.
I t is
urged that tenders be m a d e on the p r i n t e d forms a nd f o r w a r d e d in. the
special e n v e l o p e s w h i c h w i l l be su p p l i e d b y F e d e r a l R e s e r v e B a nks or
Branches 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 ^ t o submit
tenders except 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
without d e p osit fro m i n c o r p o r a t e d banks an d trust c o m panies and^ f r o m
responsible a nd r e c o g n i z e d de a l e r s in i n v e s t m e n t securities.
T e nders
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 tenders are
accompanied b y a n ex p r e s s g u a r a n t y . o f p a y m e n t by a n i n c o r p o r a t e d b a n k
or trust company.
I m m e d i a t e l y a f t e r . t h e c l o s i n g hour, tenders w i l l be o p e n e d at .
the Federal R e s e r v e B a n k s and 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 bids.
T h o s e 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 the r i g h t 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, a nd h is a c t i o n in a n y such
respect shall be final.
Su b j e c t to these re s e r v a t i o n s , n o n ­
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 ■f r o m
any 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 ice (in

2
three decimals) of accepted competitive bids.
Settlement for
accepted tenders in accordance with the bids must be made or
completed at the Federal Reserve Bank on October 4, 1951, in cash or
other immediately available funds or in a like face amount of
Treasury bills maturing October 4, 1951.
Cash and exchange tenders
will receive equal treatment.
Cash adjustments will be made for
differences between the par value of maturing bills accepted in
exchange and the issue price of the new bills.
The income derived from Treasury bills, whether interest or gain
from the sale or other disposition of the bills, shall not have any
exemption, as such, and loss from the sale or other disposition of
Treasury bills shall not have any special treatment, as. such, under
the Internal Revenue Code, or laws amendatory or supplementary
thereto.
The bills shall be subject to estate, inheritance, gift or
other excise taxes, whether Federal or State, but shall be exempt
from all taxation now op hereafter imposed on the principal or
interest thereof by any State, or any of the possessions of the
United States, or by any local taxing authority.
For purposes of
taxation the amount of discount at which Treasury bills are
originally sold by the. United States shall be considered to be
interest.
Under Sections 42 and 117 (a) (l) of the Internal Revenue
Code, as amended by Section 115 of the Revenue Act of 1941, the
amount of discount at which bills issued hereunder are sold shall not
be considered to accrue until such bills shall be sold, redeemed or
otherwise disposed of, and'such bills are excluded from consideration
as capital assets.
Accordingly, the owner of Treasury bills (other
than life insurance companies) issued hereunder need include in his
income tax return only the difference between the price paid for
such bills, whether on original issue or on subsequent purchase,
and the amount actually received either upon sale or redemption at
maturity during the taxable year for which the return is made, as
ordinary gain or loss.

Treasury Department Circular No. 4l8, as amended, and this
notice, prescribe the terms of the Treasury bills and govern the
conditions of their issue.
Copies of the circular may be obtained
from any Federal Reserve Bank .or Branch.

oOo

-

fM

-3-

$

#/•'’.

11—S 9 9 H B p

Flag Cities certified ^

the Treasury to date are:

has Cruces, N. M.,

Richland, Wash., Independence, Mo., Keokuk, la., Linden, N. J., Salem, Ore.,
Duluth, Minn., Grants Pass, Ore., Henryetta, Okla., Vineland, N. J.,
Torrance, Calif., Oak Ridge, Tenn., Kingsport, Term., Hammond, Xnd.,
Vallejo, Calif., Bradenton, Fla., Kewanee, 111«, Bend, Ore«, Watertown, S. B,,
Greenwood, S. C., Anadarko, Okla., LaGrange, Ga., Boulder, Col., Columbus, Nebr.,
Rochester, N.Y., Faulkner County, Ark., Duncan, Okla., Belvidere, 111.,
Pauls Valley, Okla., La Crosse, Wise., Pikeville, Ky., Chickasha, Okla.,
Fremont, Nebr., Pueblo, Col., Gresham, Ore., Konawa, Okla., Altus, Okla.,
Oity, Okla*, Weirton, W .. Va,, Donalsonville, Ga., The Dalles, Ore.,
Plymouth, Mass., Sulphur, Okla., Okmulgee , Okla., Decatur, 111., El Reno, Okla.,
Tahlequah, Okla., Quincy, 111., Durham, N. C., Klamath Falls, Ore., B
Griffin, Ga.^

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- 3 -

Oklahoma’s intensive campaigning. which brought that State the honor
y
of having more ’’Flag Cities” than
, is being headed by

A

Dr. C. Dan Procter, presiden
which has- H t D * won a flag.

)llege for Women at Chickasha,
are Henryetta, Duncan, Anadarko,

Pauls Valley, Kanawa, Altus, Elk City, Sulphur, Okmulgee, El Reno, Tahlequah,
and Muskogee.* The drive to increase this number is continuing.
’’Operation Flag City” is proceeding in Utah with outstanding results
under the direction of Nelson W. Aldrich, of the Kennecott Copper Corp..,
itÉ0A.
'
More than sixty cities titefllfc
A
■yunaitftd t h e r e will be special
plaque awards to une nr s u winner in various population groups.

Tihffl

v e lu n f r Q ù jjifl rH "¿T g 1 c p u m w iid o d »

Goals to establish at least 20 Flag Cities this Fall have been set in
Iowa, California, Missouri, Oklahoma, Indiana, Illinois and Yifisconsin.

In

most other States and Hawaii*campaigns are under way.
An example of the enthusiasm of some of the volunteers in the drive
came from Galveston, Texas, where a group of 102 women recently refused to
let torrential rain# dampen their ardor. Galoshed and raincoated, they
A
called on 520 business firms, and signed up 2 1 U of them for the Payroll Savings
Plan.

These plants have enrolled lj.,027 employees in the program.
’’The weather helped rather than hindered,” said Mrs. Jack Hopkins, leader

of the group and mother of five children.

’’The sight of those rain-drenched

women convinced many employers of our determination, and
K

jjttte acceptance^"
Mrs. Hopkins has been a leader in every U. S. Bond Drive in Galveston
since 19li2

-

2

-

What a flag represents to a city was explained fcy Secretary of the
H‘ V
Treasury John W. Snyder when he presented one to Rochestej recently. It’s
value, he pointed out, lies in its' representation of the fact that the city
possessing it uhas mobilized the spirit of community thrift behind the
power for def@nse — the power for peace — that this nation is now bringing
to bear in world affairs.11
Veterans of the Korean hostilities have figured largely in the flag
presentation ceremonies to date.

In some cases, the program is tied in with

a tribute to Medal of Honor heroes*
This was true at Griffin, Ga., te.fl.tr vwrtft where a flag was presented
to City Manager Hill R. Healan by Maj. Gen. W. A. Beiderlinden, formerly of
Gen. MacArthur»s staff in Tokyo, now Deputy Commanding General of the Third
Army.

A contingent of Korean veterans from Fort Benning participated in

the large parade, and an Army helicopter delivered the flag to the city.
Griffin Kiwanis Club sponsored the event.

The

Two other Georgia cities, LaGrange

and Donáisonville, have won Treasury Flags.
Durham, N# C #,

How&y one of its own sons, Sgt# James B» Nash, at

flag raising ceremonies

The sergeant, a veteran of

the Korean fighting, escaped from the Reds after being held prisoner for six
months^^
W i t s ?

The flag

presented to Mayor E. James Evans of Durham by Assistant

Secretary of the Treasury John S. Graham, a native North Carolinian, who w«s*4
«

participating in the first Treasury flag-raising in his own State,
WM.1 be1.. parmtiia»

Sgfr

¿¿teas..

If you happen to be driving through any of American Main Streets
these days and find the town bedecked and in holiday mood, the chances
are you have arrived in another "Flag City.”

And if you follow the

crowd to City Hall, or some other public site, you perhaps will witness
a parade, hear a band, and view a program of various other demonstra­
tions of lively and understandable local pride.
These ’’Flag City” programs, which are climaxed by the presentation
of a U. S. Treasury Flag, mark intensive campaigns initiated and
carried through by thousands of men and women serving as volunteer
workers to increase the sale of Defense Bonds under the Payroll Savings
Plan.

The flag, a four by six foot blue banner with the figure of a

Minute Man in red on a large white nTn, signifies that a great majority
of a town’s business firms and their employees are participating in the
plan.
There are now 61 cities, with a total population of more than
1,500,000, qualified to fly the flag, and the list is growing constantly.
Oklahoma was leading the States with 13 cities this week.
now under way in 300 cities from coast to coast.

Campaigns are

TREASURY DEPARTMENT
Information Service

IMMEDIATE RELEASE,
Thursday, S e p t e m b e r

Wa s h i n g t o n ,

d .c

.

5G8
27,

1951.

S-283O

If y o u h a p p e n to he d r i v i n g t h r o u g h a n y of A m e r i c a ’s M a i n
Streets these days a nd fin d the t o w n b e d e c k e d a n d in h o l i d a y mood,
the chances are y o u h a v e a r r i v e d in a n o t h e r " F l a g City." A n d if
you f o l l o w the c r owd to C i t y Hall, or some o t her p u b l i c site, y o u
perhaps w i l l w i t n e s s a parade, h e a r a band, a n d v i e w a p r o g r a m of
various o t her d e m o n s t r a t i o n s of l i v e l y a nd u n d e r s t a n d a b l e local
pride.
These " F l a g City" programs, w h i c h are c l i m a x e d b y the
p r e s e n t a t i o n of a U. S. T r e a s u r y Flag, m a r k i n t e n s i v e cam p a i g n s
initiated a n d ca r r i e d t h r o u g h b y t h o u s a n d s of m e n a nd w o m e n
serving as v o l u n t e e r w o r k e r s to in c r e a s e the sale of D e f e n s e B o n d s
under the P a y r o l l Savings Plan.
The flag, a f o u r b y six foot
blue b a n n e r w i t h the figure of a M i n u t e M a n in r ed on a large
white "T", s i g n ifies that a great m a j o r i t y of a t o w n ’s b u s i n e s s
firms a n d t h eir e m p l o y e e s are p a r t i c i p a t i n g in the plan.
There are n o w 6 l cities, w i t h a t o tal p o p u l a t i o n of m o r e tha n
1 ,5 0 0 ,0 0 0 , q u a l i f i e d to fly the flag, a nd the list is g r o w i n g
constantly.
O k l a h o m a was l e a d i n g the States w i t h 13 cities this
week.
C a m p a i g n s are n o w u n d e r w a y in 300 cities f r o m c o a s t to
coast.
W h a t a f l a g r e p r e s e n t s to a c ity was e x p l a i n e d b y 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 w h e n he p r e s e n t e d one to Rochester,
New York, recently.
I t ’s value, he p o i n t e d out, lies in its
r e p r e s e n t a t i o n of the fact that the c ity p o s s e s s i n g it "has
m o b i l i s e d the spirit of c o m m u n i t y thrift b e h i n d the p o w e r for
defense -- the p o w e r for p e ace -- that this n a t i o n is n ow b r i n g i n g
to bea r in w o r l d a f f a i r s ."
V e t e r a n s of the K o r e a n h o s t i l i t i e s h a v e f i g u r e d l a r g e l y in
the f l a g p r e s e n t a t i o n cere m o n i e s to date.
I n some cases, the
prog ram is t ied in w i t h a t r i bute to M e d a l of H o n o r h e r o e s .
This was trup a t Griffin, Georgia, w h e r e a f l a g was p r e s e n t e d
to C i t y M a n a g e r H i l l R. H e a l a n b y M a j o r G e n e r a l W. A.
Beiderlinden, f o r m e r l y of G e n e r a l M a c A r t h u r ’s s t aff in Tokyo, n o w
Deputy C o m m a n d i n g G e n e r a l of the T h i r d Army.
A c o n t i n g e n t of

5 69
- 2 Korean v e t e r a n s fro m P o r t B e n n i n g p a r t i c i p a t e d in the large parade,
and a n A r m y h e l i c o p t e r d e l i v e r e d the f l a g to the city.
The
Griffin K i w a n i s Club s p o n s o r e d the event.
Two o t h e r G e o r g i a
cities, L a G r a n g e a n d D o n a l s o n v i l l e , h a v e w o n T r e a s u r y Flags.
Durham, N o r t h Carolina, h o n o r e d one of its o w n sons,
Sergeant James B. Nash, at f l a g r a i s i n g c e r e m onies.
The sergeant,
a v e t e r a n of the K o r e a n fighting, e s c a p e d f r o m the Red s a f t e r
being h e l d p r i s o n e r for six mo n t h s .
The f l a g was p r e s e n t e d to
Mayor E. James E v a n s of D u r h a m b y A s s i s t a n t S e c r e t a r y of the
Treasury J o h n S. Graham, a n a t i v e N o r t h C a r o l inian, w ho was
p a r t i c i p a t i n g in the f i rst T r e a s u r y f l a g - r a i s i n g i n h i s o w n
State.
O k l a h o m a ’s in t e n s i v e c ampaigning, w h i c h b r o u g h t that State
the h o n o r of h a v i n g m o r e " F lag Cities" t h a n a n y o t h e r State, is
being h e a d e d b y D r . C. D a n Procter, p r e s i d e n t of the O k l a h o m a
The o t her
College for W o m e n at Chickasha, w h i c h h a s w o n a flag,
uls
Valley,
qualifying cities are H e n r y e t t a , Duncan, A n a d a r k o , Pa
T
ahlequah,
Konawa, Altus, E l k City, Sulphur, Okmulgee, E l Reno,
and Muskogee.
The d r i v e to increase this n u m b e r is c ontinuing.
" O p e r a t i o n F l a g City" is p r o c e e d i n g in U t a h w i t h o u t s t a n d i n g
results u n d e r the d i r e c t i o n of N e l s o n W. Ald r i c h , of the
Kennecott C o p p e r Corpo r a t i o n .
M o r e t h a n s i x t y U t a h cities and
towns are p a r t i c i p a t i n g .
T h ere w i l l be s p ecial p l a q u e a w a r d s to
the first w i n n e r in v a r i o u s p o p u l a t i o n groups.
Goals to e s t a b l i s h at least 20 F l a g C i ties this F a l l h a v e
been set in Iowa, California, Missouri, Oklahoma, Indiana,
Illinois a n d W i s c o n s i n .
In m o s t o t h e r States a n d H a w aii,
campaigns are u n d e r way.
A n e x a m p l e of the e n t h u s i a s m of some of the v o l u n t e e r s in the
drive came f r o m Galveston, Texas, w h e r e a g r o u p of 102 w o m e n
recently r e f u s e d to let a t o r r e n t i a l r a i n d a m p e n t h e i r ardor.
Galoshed a n d rain c o a t e d , t h e y c a l l e d on 520 b u s i n e s s firms, a nd
signed up 214 of them for the P a y r o l l S a v i n g s Plan.
These
plants h a v e e n r o l l e d 4 , 0 2 7 e m p l o y e e s in the program.
"The w e a t h e r h e l p e d r a t h e r t h a n h i n d e r e d , " said Mrs. J a c k
Hopkins, l e a d e r of the g r o u p a nd m o t h e r of five children.
"The
sight of those r a i n - d r e n c h e d w o m e n c o n v i n c e d m a n y e m p l o y e r s of
our d e t e r m i n a t i o n , an d h e l p e d w i n m a n y a c c e p t a n c e s . "
M r s . H o p k i n s h a s b e e n a l e a d e r in e v e r y U . S . B o n d D r i v e
Galveston since 1942.

in

570

-3 F l a g Cities c e r t i f i e d to the T r e a s u r y to date are:
Las C r u c e s , N e w Mexico, Richland, W a s h i n g t o n , Indep e n d e n c e ,
Missouri, K e okuk, Iowa, Linden, N e w Jersey, Salem, Oregon,
Duluth, Minn e s o t a , Grants Pass, Oregon, H e n r y e t t a , Oklahoma,
Vineland, N e w Jersey, Torrance, C a l i f ornia, O a k Ridge, Tennessee,
Kingsport, T ennessee, Hammond, Indiana, Va l l e j o , C alifornia,
Bradenton, Florida, Kew a n e e , Illinois, Bend, Oregon, W a t e r t o w n ,
South Dakota, Greenwood, S o u t h Carolina, An a d a r k o , Oklahoma,
LaGrange, Georgia, Boulder, Colorado, Columbus, Nebraska,
Rochester, N e w York, F a u l k n e r County, A r k a n s a s , Duncan, Oklahoma,
Belvidere, Illinois, Pauls Valley, Oklahoma, L a Crosse, W i s c o n s i n ,
Pikevilie, K e n t u c k y , Chickasha, Oklahoma, Fremont, Nebraska',
Pueblo, Colorado, Gresham, Oregon, Konawa, Oklahoma, Altus,
Oklahoma, E l k City, Oklahoma, Wei r t o n , W e s t V i r g i n i a ,
Donalsonville, Geòrgie
The Dalles, Oregon, Plymouth,
Massachusetts, Sulphur, O k l a h o m a , O k m u l g e e , O k l a h o m a , Decatur,
Illinois, E l Reno, Oklahoma, Tahlequah, Oklahoma, Quincy, Illinois,
Durham, N o r t h Carolina, K l a m a t h Falls, Oregon, G r i f f i n
Georgia,
Monr o e , U t a h , Panguitch, Utah, Parowan, Utah, M u s k o g e e
Oklahoma,
Garfield, Utah, H u n t i n g t o n , Utah, Tooele, Utah, H e l p e r
Utah,
Morgan, Utah, an d Redmond, Oregon.

0 O0

IMMEDIATE RELEASE,

Friday« September 28, 1951«

The Secretary of the Treasury today announced the subscriptIon and
allotment figures with respect to the current offering of 1*7/8 percent
Treasury Certificates of Indebtedness of Series B*1952, to be dated
October 1, 1951.
Subscriptions and allotments were divided among the several Federal
Reserve Districts and the Treasury as followst
Federal Reserve
District

Total Subscriptions
Received and Allotted

Boston
Hew fork
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St« Louis
Minneapolis
Kansas City
Dallas
San Francisco
Treasury

#

39,553
773.313.000
77.967.000
70.123.000
18 ,271,000
97.392.000

.

263 580.000

89,771*,000
62.987.000
98.703.000
86.170.000
178,197,000

16.032.000

com

#1,832,022,000

T R E A S U R Y D EP A R TM EN T
Information Service

Wa s h i n g t o n ,

d .c

.

572
I M M E D I A T E RELEASE,

F r id a y , Sep tem b er 2 8 , 195.1.

S -2 8 3 1

The S e c r e t a r y o f th e T r e a s u r y to d a y announced th e su b ­
s c r i p t i o n and a llo t m e n t f i g u r e s w ith r e s p e c t to th e c u r r e n t
o f f e r in g o f 1 -7 /8 p e rc e n t T re asu ry C e r t i f i c a t e s o f In d eb ted n ess
o f S e r i e s D -1952, t o be d a te d O ctob er 1 , 1 9 5 1 .
S u b s c r i p t i o n s a n d a l l o t m e n t s were d i v i d e d a m o n g the s e v eral
F e d e r a l R e s e r v e D i s t r i c t s a n d the T r e a s u r y as .
f ollows*
F e d e r a l Re s e r v e
District

Total Subscriptions
R eceived and Allotted

$

Boston
hew York
Philadelphia
Cleveland
Richmond
Atlanta
C h i cago
St, Louis
Minneapolis
K a n s a s C ity
DallasS an F r a n c i s c o
Treasury

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

62.947.000

9 8 .7 0 3 .0 0 0
4 6 .1 7 0 .0 0 0
1 7 8 .1 9 7 .0 0 0
1 6 .0 3 2 .0 0 0
TOTAL

0 O0

$ 1 ,832 , 022,000

RELEASE, HORNING NEWSPAPERS,
Monday, October 1, 1951*

S-2832

Secretary of the Treasury Snyder today announced the offering, through
the Federal Reserve Banks, of 1-7/8 percent Treasury Certificates of In­
debtedness of Series E-1952, open on an exchange basis to holders of 1-l/U
percent Treasury Notes of Series F-1951* in the amount of $5*9U0,578,000,
maturing October 15* 1951, or 1-l/U percent Treasury Notes of Series G-1951*
in the amount of $£,2^3,075,000, maturing November 1, 1951. Exchanges will
be made par for par in the case of the notes of Series F-1951* and at par
with an adjustment of interest as of October 15, 1951* in the case of the
notes of Series G-1951. Cash subscriptions will not be received.
The c e r t ific a t e s now offered w ill be dated October 15* 1951* and m i l
bear in te r e st from th at date a t the rate of one and seven-eighths percent
per annum, payable with the p rin cip al at maturity on October 1, 1952. They
wi11 be issu ed in bearer form only, in denominations of $1,000, $5*000,
$10,000, $100,000 and $1,000,000.
Pursuant to the provisions of the Public Debt Act of 19Ul* as amended,
in terest upon the c e r t ific a t e s now offered sh a ll not have any exemption, as
such, under the In tern al Revenue Code, or laws amendatory or supplementary
thereto. The f u l l provisions re la tin g to ta x a b ility are se t fo rth in the
o f f ic ia l c irc u la r released today.
Subscriptions w ill be received a t the Federal Reserve Banks and .Branches,
and a t the Treasury Department, Washington, and should be accompanied by a
like face amount of the maturing notes. Subject to the usual reserv atio n s,
a l l su bscription s w ill be a llo tte d in f u l l .
The su bscription books w ill close fo r the receip t of a l l su bscription s
at the close of business Thursday, October U.
Subscriptions addressed to a Federal Reserve Bank or Branch or to the
Treasury Department, and placed in the m ail before midnight October U* w ill
be considered as having been entered before the close of the su bscription
books.
The tex t of the o ffic ia l, c irc u la r follow s:

574

UNITED STATES OF AMERICA
1-7/8 PERCENT TREASURY CERTIFICATES OF INDEBTEDNESS OF SERIES E-1952
Dated and bearing in te re st from October 15, 1951
1951

Department C ircular No. 89U
F is c a l Service
Bureau of the public Debt
I.

Due October 1* 1952

TREASURY DEPARTMENT,
O ffice of the Secretary,
Washington, October 1, 1951

OFFERING OF CERTIFICATES

1. The Secretary of the Treasury, pursuant to the authority of the
Second Liberty Bond ilct, as amended, In v ites su bscription s from the people
of the United S tate s fo r c e r t ific a t e s of indebtedness of the United S ta te s,
designated 1-7/8 percent Treasury C e rtific a te s of Indebtedness of Series
E--1952, in exchange fo r i-l/U percent Treasury Notes of S e rie s F-1951*
maturing October 15, 1951* or 1-l/U percent Treasury Notes of Series G-1951*
maturing November 1, 1951. Exchanges w ill be made par fo r par in the case
of the notes of S e ries F-1951* and at par ■ with an adjustment of in te re st as
of October 15, 1951* in the case of the notes of S e ries G-1951*
II,

DESCRIPTION OF CERTIFICATES

1 . The c e r t if ic a t e s w ill be dated October 15, 1951* and w ill bear
in te re st from that date a t the ra te of 1-7/8 percent per annum, payable with
the p rin cip al at m aturity on October 1, 1952. They w ill not be subject to
c a ll fo r redemption p rior to m aturity.
2. The income derived from the c e r t ific a t e s sh a ll be subject to a l l
taxes, now or h ereafter imposed under the In tern al Revenue Code, or laws
amendatory or supplementary th ereto. The c e r t ific a t e s sh a ll be su bject to
e sta te , inheritance, g i f t or other excise ta x e s, whether Federal or S tate ,
but s h a ll be exempt from a l l taxation now or h ereafter imposed on the
p rin cip al or in te re st thereof by any S ta te , or any of the p ossession s of the
United S ta te s, or by any lo c a l taxing authority.
3.
moneys.

The c e r t ific a t e s m i l be acceptable to secure d eposits of public
They w ill not be acceptable in payment of tax es.

U. Bearer c e r t ific a t e s w ill be issu ed in denominations of $1,000,
$5*000, $10,000, $100,000 and $1,000,000. The c e r t ific a t e s m i l not be
issued in re g iste re d form,
5. The c e r t ific a t e s w ill be su bject to the general regu lation s of the
Treasury Department, nos/ or h ereafter prescribed, governing United S tate s
c e r t if ic a t e s ..
III.

SUBSCRIPTION AND ALLOTMENT

1. Subscriptions w ill be received a t the Federal Reserve Banks and
Branches and at the Treasury Department, Washington.. Banking in stitu tio n s

575
-

2

-

generally may submit su bscription s fo r account of customers, but only the
Federal Reserve Banks and the Treasury Department are authorized to act as
o f f i c i a l agencies.
2m The Secretary of the Treasury reserves the rig h t to r e je c t any
subscription , in -whole or in p a rt, to a llo t le s s than the amount of c e r t i f ­
ic a te s applied fo r , and to close the books as to any or a l l su bscription s at
any time without n otice; and any action he may take in these resp ects sh a ll
be f i n a l . Subject to these reserv atio n s, a l l su bscription s w ill be, a llo tte d
in f u l l . Allotment notices w ill be sent out promptly upon allotm ent.

IV.

PAXLiENT

1. paynent fo r c e r t ific a t e s a llo tte d hereunder must be made on or
before October 15, 1951* or on la te r allotm ent. Payment of the p rin cip al
amount may be made only in Treasury Notes of S eries F-1951* maturing
October 15, 1951» or in Treasury Notes of S e rie s G-1951* maturing November 1,
1951* which w ill be accepted a t par and should accompany the su bscription *
The f u l l amount of in te re st due on the notes of S e rie s F-1951 surrendered
v a il be paid to the subscriber follow ing acceptance of the n otes. In the
case of the notes of S e ries G-1951* accrued in te re st from October 1, 1950*
to October 15, 1951 ($12* 979^5 per $1, 000) w ill be paid to the subscriber
follow ing acceptance of the notes.
V.

GENERAL PROVISIONS

1* As f i s c a l agents of the United S ta te s, Federal Reserve Banks are
authorized and requested to receive su b scrip tion s, to make allotm ents on the
b asis and up to the amounts in dicated by the Secretary of the Treasury to
the Federal Reserve Banks of the respective D is t r ic t s , to issu e allotment
n otices, to receive payment fo r c e r t ific a t e s a llo tte d , to make d elivery of
c e r t ific a t e s on fu ll- p a id su bscription s a llo tte d , and they may issu e interim
receip ts pending d elivery of the d e fin itiv e c e r t if ic a t e s .
2 m The Secretary of the Treasury may a t any time, or from time to time,
prescribe supplemental or amendatory ru le s and regu lation s governing the
o fferin g, which w ill be communicated promptly to the Federal Reserve Banks*

JOHN W. SNIDER,,
Secretary of the Treasury.

After thorough, discussione, the International Monetary 5\md
has issued today a statement on external transactions in gold«
She United States concurred in this statement, which accords with
its own gold policy* She Sreasury plans to continue in effect
existing gold practices and procedures*

S-2833
D1CEDIATE RELEASE
Friday, September 28, 1951

A fter thorough d iscu ssio n s, the International Monetary
Fund has issued today a statement on extern al tran saction s
in gold«

The United S tates concurred in th is statement,

which accords with i t s own gold policy«

The Treasury plans

to continue in e ffe c t e x istin g gold p ractices and procedures

0O0

U.S. Practices and Procedures Governing the Exportation
of Industrial Gold
__ _

Under the United States gold regulations, the Director of
the Mint is authorized to permit the exportation of semiprocessed gold, provided the Mint is satisfied that the gold
to be exported is semi-processed gold and that its export from
the continental United States is for a specific and customary
industrial, professional or artistic use and not for the pur­
pose of holding or disposing of such semi-processed gold beyond
the limits of the continental United States as, or in lieu of
money, or for the value of the gold content.
A gold article which has been processed or manufactured in
good faith for some one or more specific and customary industrial,
professional, or artistic use and which has more than 80 percent
of its total domestic value attributable to the gold content
falls within the category of "semi-processed gold.1!
The only persons or concerns eligible to export semiprocessed gold are those licensed to deal in gold in the United
States.
These licenses are issued primarily to dental manu­
facturers producing dental alloys, casting gold, solder, and
various other types of gold, usually having a high gold content.
Also eligible for export licenses are refiners producing semiprocessed gold in the form of sheet, wire, tubing, etc., for
use in the manufacture of jewelry.
The application submitted to the Mint by a United States
firm holding a basic gold license must give a description of
the gold for which an export permit is requested, total gold
content, use for which intended, and sale price, in addition
to other data.
It must also be accompanied by the consignee's
import permit when required by the country of destination, and
any other data the applicant may have regarding the consignee
or this particular shipment.

EARNINGS, EXPENSES, AND DIVIDENDS 07 NATIONAL BASKS IN SEN SIX
MONTH PERIODS ENDED JUNE 30 , 1951 AND JUNE 30 , 1990» AND SHE
TEAR ENDED DECEMBER 31 , 1950 «- Continued
(Amounts in thousands of dollars)
*
6 months ended
* Tear ended
5 June 30 , s June 30# *
• Dec. 31,
* 1951 » 1950 *
1950
Recoveries, transfers from valuation reserves.
and profits*
On Securities*
Recoveries........... ......... . $
3,638 $
4,856
♦
9,670
Transfers from valuation reserves.......
2,700
3,871
28,999
Profits on securities sold or redeemed..
13.679
» ,6 5 9
60,951
On loans*
Recoveries................... .
Transfers from valuation reserves.......
All other*......*........ *...... *
TOTAL KBCOTEHIES, THANSmS ISOM
VALUATION SSS3HVBS AND SHOUTS.....
Dosses, charge-offs* and transfers to valuation reserves*
On securities*
Losses and charge-offs**.*........ .
Transfers to valuation reserves.........
On loans*
Losses and charge-offs.... .......
Transfers to valuation reserves.........
All other»*...............
TOTAL LOSSES, CHARGE-OFFS AND TRANS*
7ERS TO VALUATION RESERVES.......
PROFITS BEFORE INCOME TAXES*............
Taxes on net income*
Federal..____ _____________ _____
State*....... .
total taxes on

s e t i n c o m e ............

NET PROFITS BEFORE DIVIDENDS,...........
Cash dividends declared*
On preferred stock*............ .....
On common stock**... .......... ....
TOTAL CASH DIVIDENDS DECLARED.....
Number of banks 3/*............ .

5.156
4.157
8,956

14,891

39,457

54,766

153»732

20,780
8,608

10,756
7.634

24,010
41,360

41,921
12,931

5.200

10,909
109,25«
30,74)

78*442
383.566

216,277
793,100

108,255
6.591
114,846

241,9^
15.541
255.4901
537,610

4,072
42,812
12,628
88,900

423,128
158,503
8.009
166,512
^ 25fi,6l6
, 331
114,889
115.220
4,953

7.057
4,603

268,720

37«

102,666

105.044
4,977

15,4)1
13.333 j
25.37«

712

228,792
229.504—
4,965

Annual rate of net “
profits:
Percent
Percent
Percent.
So capital funds*.... ...... ......
7*99
S*S6
«*7^
Annual rate of cash dividends?
So capital funds.................. ..... 1.59_____ l.HO______ 1*1
l/ Averages of amounts reported for the June call date in year indicated and the
December call date in the previous year.
2 / Averages of amounts reported for the June and December call dates in year
indicated and the December call date in the previous year.

EARNINGS, EXPENSES, AND DIVIDENDS OF NATIONAL BANKS IN THE SIX
MONTH PERIODS ENDED JUNE 3 0 , 1951 AND JUNE 3 0 , 1 9 5 0 , AND THE
YEAR ENDED DECEMBER 3 1 , 1950
(Amounts in thousands of dollars)

• Year ended
Dec. 31 ,
June 30* * June 30* *
1950
1951
* 1950 1

6 months
....
.
■ended
■■■■■ ■■■■■■■■.. ■■■■■■

Capital stock, par value*
Preferred....................... $
13*775 $ 16,568 $ 16,079
Common......................... 2,020,628
1,931.573
1,9^9.898
TOTAL CAPITAL STOCK,
1/2 ,031+,l« 3 1/ 1 ,91)8 ,11+1 2/1.965,977
Capital funds... ..

1/6,1+21),5O8 1/ 6,061+,70l+ ,2/6,152,799

Earnings from current operations?
Interest and dividends*
On U. 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 EBDM CURRENT
OPERATIONS...........................

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....••••»»•

TOTAL CURRENT OPERATING EXPENSES..... .

BBS BABUINOS BROM CÖBHBHS OPERATIONS,

63,090
515.159
58,362

3^,036

29,670

33.296

590,533
132,330
I.IO3 .36O
119,601+

63,256

30,631

70,092

61,513_____ 53,829

112.938

1 ,01)6,968

2 .192.713

1*187.935

Current operating expenses*
Salaries and wages*
Officers................... .............
Employees other than officers. ...........
Pees paid to directors and members of
executive, discount, and advisory
committees..... ....................

296,227

277,9*+7
72,W+
6l+i+,lH5
6U,281+

#
118,132
227,91+1

107,029
196,762

230,331
1+21,71+1

6,018

5,1+71+

101+.290

91+.993
36,1+37

190,37*}

39,106
16,855

15.158

715.361+

183,873
639,726

33.619
374*812
1 ,337,068

>+72,571

»»7 ,2>+2

855,61+5

203,022

11*775
7i*#4l6

'

Comptroller of the Currency Preston Delano announced today that the
national hanks in the United States and possessions reported net operating/
earnings of $*473*000,000 for the six months ended June 30* 1951» &n increase of $66,000,000 over the first half of 1950,
Gross earnings were $1,168,000,000» This was an increase of $1*41,000,000
over the gross earnings for the first six months of 1990» The principal
item of operating earnings in the first half of 1951 was $6*4*4,000,000 from
interest and discount on loans9 which was an increase of $129»000,000 com­
pared with the corresponding period in 1950. Other principal items of
operating earnings were $278,000,000 from interest on United States
Government obligations and $73*000,000 interest and dividends on other
securities, a total of $351 *000 ,000 , which was a decrease of $8,000,000
coupared to the first half of the previous year, and $6*4,000,000 from
service charges on deposit accounts, an Increase of $6,000,000» Operating
expenses, excluding taxes on net income, were $715 *000,000 as against
$6*40,000,000 for the first half of 1990. The principal operating expenses
were $352,000,000 for salaries and wages of officers and employees and
fees paid to directors, an increase of $*1-3,000,000 over the first half of
1990, and $10*4-,000,000 expended for interest on time and savings deposits,
an increase of $9,000,000«
Adding to the net operating earnings profits on securities sold of
$1*4-,000,000 and recoveries on loans and investments, etc» (including adjust­
ments in valuation reserves) of $25 *000 ,000 , and deducting losses and chargeoffs (including current additions to valuation reserves) of $89,000,00and
taxes on net income of $166,000 ,000 , the net profits of the hanks before
dividends for the six months ended June 30, 1951 wore $257*000*000, which at
an «tmtift1 rate amounts to 7.99 percent of average capital funds» Net profits
for the same period of the previous year were $269*000 ,000 , or 8.86 percent of
average capital funds»
Cash dividends declared on common and preferred stock totaled $115,000,000
in comparison with $103,000,000 in the first half of 1990. The annual rate
of cash dividends was 3*59 percent of average capital funds and was *4*4-.75
percent of the net profits available. The remaining 55.25 percent of net
profits, or $1*42,000,000 was retained by the banks in their capital accounts»
On June 30, 1951 there were *4,953national banks in operation, which
was a decrease of 2*4 banks since June 30* 1950.

581
TREASUET DEPARTMENT
Comptroller of the Currency
Washington
RELEASE, MORNING NEWSPAPERS,
Friday. September 28. 1951

S-2834

Comptroller of the Currency Preston Delano announced today that the
national banks in the United States and possessions reported net operating
earnings of $473,000,000 for the six months ended June 30, 1951, an
increase of $66,000,000 over the first half of 19500
Gross earnings were $1,188,000,000« This was an increase of $141,000,000
over the gross earnings for the first six months of 1950« The principal
item of operating earnings in the first half of 1951 was $644,000,000 from
interest and discount on loans, which was an increase of $129,000,000
compared with the corresponding period in 1950« Other principal items of
operating earnings were $278,000,000 from interest on United States
Government obligations and $73,000,000 interest and dividends on other
securities, a total of $351,000,000, which was a decrease of $8,000,000
compared to the first half of the previous year, and $64,000,000 from
service charges on deposit accounts, an increase of $6,000,000o Operating
expenses, excluding taxes on net income, were $715,000,000 as against
$640,000,000 for the first half of 1950« The principal operating expenses
were $352,000,000 for salaries and wages of officers and employees and
fees paid to directors, an increase of $43,000,000 over the first half of
1950, and $104,000,000 expended for interest on time and savings deposits,
an increase of $9,000,0000
Adding to the net operating earnings profits on securities sold of
$14,000,000 and recoveries on loans and investments, etc0 (including adjust­
ments in valuation reserves) of $25,000,000, and deducting losses and chargeoffs (including current additions to valuation reserves) of $89,000,000, and
taxes on net income of $166,000,000, the net profits of the banks before
dividends for the six months ended June 30, 1951 were $257,000,000, which at
an annual rate amounts to 7o99 percent of average capital funds« Net profits
for the same period of the previous year were $269,000,000, or 8«86 percent
of average capital funds0
Cash dividends declared on common and preferred stock totaled $115,000,000
in comparison with $103,000,000 in the first half of 1950« The annual rate
of cash dividends was 3© 59 percent of average capital funds and was 44©75
percent of the net profits available« The remaining 55o25 percent of net
profits, or $142,000,000 was retained by the banks in their capital accounts«
On June 30, 1951 there were 4,953 national banks in operation, which
was a decrease of 24 banks since June 30, 1950©

582
-

2

-

EARNINGS, EXPENSES, AND DIVIDENDS OF NATIONAL BANKS IN THE SIX
MONTH PERIODS ENDED JUNE 30, 1951 AND JUNE 30, 1950, AND THE
YEAR ENDED DECEMBER 31, 1950
(Amounts in thousands of dollars)

ì

6 months ended
:
s June 30, :
June 30,
:
1950
:
1951

Capital stock, par value:
Preferred •••«••••••«•••••••••••.••••'•

,1
13,775
2.020.628
Common •••«•••••••••••••••••••••••••»•••••, 2
,020«628

$

16,568
1,931,573

Year ended
Dec. 31,
1950

I

16,079
1,949,898

,1/2,034,403

1 /1 ,9 4 8 ,1 a

2/1,965,977

.1/6,424,508
Capital funds •••••*••••••••••••••••••••••••1/6,424,508

1/6,064,704

2/6,152,799

277,947
72,444
644,415
64, 284

296,227
63,090
515,159
58,362

590,533
132,330
1,103,360
119,604

34,036
33,296
61.513

29,670
30,631
53,829

63,856
70,092
112.938

. 1,187,935

1.046,968

2,192,713

Earnings from current operations:
Interest and dividends:
On U* S» Government obligations ••••
.
On other securities •••••••«•••••«••
*
Interest and discount on loans •••••••
.
Service charges on deposit accounts •• 1
Other service charges, commissions, fees,
and collection and exchange charges • !
Trust department •••••«•••••••••••«•••• .
Other current earnings ••••*.#••••••••• .
TOTAL EARNINGS FROM CURRENT
OPERATIONS .... .

Current operating expenses:
Salaries and wages:
Officers »•••••»•••*••••••%••••••••••«
Employees other than officers ••••••••
Fees 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 •••••••

.
,

118,132
227,941

107,029
196,762

230,331
421,741

.

6,018

5,474

11,775

1
,

104,290
39,106

94,993
36,437

190,374
74,a 6

,
,

16,855
203.022

15,158
183.873

374,812

TOTAL CURRENT OPERATING EXPENSES ...• .

715,364

639,726

1,337,068

472,571

¿07.242

855.645

NET EARNINGS FROM CURRENT OPERATIONS

33,619

- 3 -

583

EARNINGS, EXPENSES, AND DIVIDENDS OF NATIONAL BANKS IN THE SIX
MONTH PERIODS ENDED JUNE 30, 1951 AND JUNE 30, 1950, AND THE
YEAR ENDED DECEMBER 31, 1950 — Continued
(Amounts in thousand's of dollars)
••
6 months ended
*
June
3Ù, ; June 30,
•
É•
1950
1951
:
Recoveries, transfers from valuation reserves,
and profits:
On Securities:
ReCOVerieS o © ©© © o o © © © c © o o o o r t © o o o © © f l © o © o o ©$
Transfers from valuation r e s e r v e s 0 ^ o o o o o
Profits on securities sold or redeemed«,.»

3,638
3,871
13,679

$

4,856
2,700
20,659

: Year ended
?
Dec© 31,
:
1950

$

9,670
28,999
60,951

On loans:
Re COVe rie S © o o 0 © 0 0 0 0 0 » " > 0 0 © 0 0 0 0 0 0 © n © © © 0 © © 0
Transfers from valuation reserves©©©©©©o
All other 0 0 0 0 0 0 © 0 0 0 0 0 0 0 0 0 0 0 0 © 0 © 0 0 0 © 0 0 © © 0 0 0 0

5.156
4.157
8.956

7,057
4,603
14.891

15,401
13,333
25.378

TOTAL RECOVERIES, TRANSFERS FROM
VALUATION RESERVES AND PROFITS,.... ....

39*457

54,766

153,732

Losses. charge-offs, and transfers to valu­
ation reserves:
On securities:
Losses and charge—offs©©
Transfers to valuation reserves
On loans:
Losses and charge—offSo
Transfers to valuation reserves©©©0o©©©o
All other ©©.©©©©©, © ©©© © .©©©©©©©■>©©©© ®©

20,780
8,608

10,756
7,634

2 4 ,010
41,360

o

4,072
42,812
12,628

5,200
41,921
12,931

10,909
109,258
30,740

TOTAL LOSSES, CHARGE-OFFS AND TRANSFEES TO VALUATION RESERVES©©©©©©©©©©©

88,900

78,442

a6,277

423,128

383,566

793,100

158,503
8,009
166,512
256,616

108,255
..
6,591
114,846
268,720

241,949
13,541
255,490
537,610

©©©©©©o o © © o © o o o o

© © © o o o o o o

©©©©©©©©©©©©©©g

o o

©©

©

o

o o

PROFITS BEFORE INCOME TAJQSSoo©oooooo©o©oo©o©oo
Taxes on net income:
Fede ral
State
TOTAL TAXES ON NET INCOME
NET PROFITS BEFORE DIVIDENDS©
o o © 9 o o © © © © 9 o o © © o o © © © o © © © © ,» o © o © © o o o o o

0 © 0 0 0 0 0 0 0 © 0 0 © © © 0 0 0 » 0 © © 0 0 © 0 © © 0 © 0 0 0 © 9 © 0 9
o © o o o o o o © o © o ©

© o © o © o o o © o © © o © o o o

$

Cash dividends declared:
On preferred stocko
On common stock
TOTAL CASH DIVIDENDS DECLARED©
Numb©r of banks

o o o o © o o o o © © o o © o o © o © © o o o o

o o o © o o o o o o o o o © o o © o © © o o © o o o o o
©©©©©©©©

' > © © o o o o © o © o o © o © o o o © o © © o o o © o o

331
114*889
115,220
4,953

378
102,666
103*044
4,977

712
228,792
229.504
4,965

Percent
Percent
Percent
Annual rate of net profits:
8086
7©99
To capital funds
©© ©
8o74
Annual rate of cash dividends;
3 .4 0
3©73
3© 59
To capital funds ©©©o
©©©©©©©©©©©■,#©©©©© ©©
1/ Averages of amounts reported for the June call date in year indicated and the
December call date in the previous year«,
2/ Averages of amounts reported for the June and December call dates in year
indicated and the December call date in the previous year*
3/ At end of period0
-oOo©©©©* » ©©©* ' • » ©©; %©© ;©

o o o o

■
*>

© ©o © o o o